Full Report - Feasibility Study KSCS K-Exim

["Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia <Table 10.27> Current state of land ownership (phase 2) Types of land Branch line route (m2) Percentage ownership (%) No. Rangkas Parung Total Bitung Panjang Maja Solear 1 Personal 10,577.35 67,654.34 54,610.75 39,762.92 172,605.36 64.66 5,587.85 60,447.73 - 66,035.58 Private(non- - 24.74 2 governmental) 770.66 8.41 institution 2.20 3 Village\/local 19,566.84 1,856.22 257.52 22,451.24 - government\/nation 100.0 5,862.79 5,862.79 4 N\/A - - - - - - - 5 N\/A - 92,809.03 116,914.70 45,883.23 266,954.97 Total 11,348.01 Source) 2018 LARAP 2) Compensation policy\/amount\/implementation plan (phase 2: branch line) \u2460 Asset Compensation mechanism \u25e6 the Governor issues official documents on the decision of a project site (decision letter, location statements) \u25e6 under the official decision letter on land acquisition, the land acquisition committee is organized. \u25e6 determine land prices \u25e6 if an agreement on compensation is not reached, report to the Mayor (regency). if it is not able to reach an agreement at the regency level, hold a follow-up meeting before reporting to the Governor. \u25e6 if possible, have multiple rounds of negotiations according to provincial\/regency policies \u25e6 the court makes a final decision \u2461 Basis of calculation of land acquisition price <Table 10.28> Basis of calculation of land acquisition price Classification Minimum Maximum Market prices in local Rp. 412,457,639,383.00 Rp. 585,455,434,383.00 community Rp. 193,859,910,683.00 Rp. 286,618,090,483.00 Rp. 1,555,924,835,483.00 Rp. 1,991,534,715,483.00 Selling Value of Tax Objects (NJOP) Results of surveys and interview(s) with the residents 10-40","<Table 10.29> Compens Classification Types of land Unit Branch line Quantity route (WTP) Livestock farm m2 - Hut m2 - Building m2 2,646 (house) WTP Maja 2,797 Agricultural (rice paddy, corn m2 WTP Solear 37,741 land field, pepper 12,851 field) WTP 28,733 Rangkas Bitung 0 WTP Parung Panjang Public Cemetery Nos. facilities 10-4","Chapter 10. Social and environmental impact assessment sation table (phase 2) Exchange rate Unit price for Compensation amount compensation (NJOP Max for land) - - in IDR - - - in KRW - - - in USD - - - in IDR - - 58,294,000,000 in KRW - 4,663,520,000 in USD - 53,975,926 in IDR - 830,302,000,000 66,424,160,000 in KRW - 768,798,148 in USD - 281,182,000,000 22,494,560,000 in IDR 20,841,616.02 260,353,704 in KRW 1,667,329.28 632,126,000,000 in USD 19,297.79 50,570,080,000 in IDR 22,000,000.00 585,301,852 in KRW 1,760,000.00 - - in USD 20,370.37 - in IDR 21,880,164.97 in KRW 1,750,413.20 in USD 20,259.41 in IDR 49,188,857 in KRW 1,760,000 in USD 20,370.37 in IDR - in KRW - in USD - 41","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K Classification Types of land Unit Branch line Quantity route (WTP) 0 School m2 Temple m2 0 WTP Maja 1,134,801 Compensation Residential area\/ m2 WTP Solear 9,280,903 of the affected agricultural 11,691,470 land \/ subtotal land\/personal WTP 4,588,323 Rangkas graveyard\/fishery Bitung 12 18 Tree Unit price by 12 Nos. WTP 646 (annual plant) types Parung Panjang (standard unit price is stated in WTP Maja this table. The total amount of WTP Solear compensation is WTP the same.) 10-4","KSCS), Indonesia Exchange rate Unit price for Compensation amount compensation in IDR (NJOP Max for land) - in KRW - in USD - - in IDR - - in KRW - - in USD - - in IDR - 585,301,852 in KRW - 222,420,996 in USD 2,450 2,269,602 in IDR 196 66,358,456,450 in KRW 2 5,308,676,516 in USD 7,150 64,966,321 in IDR 572 28,644,101,500 in KRW 7 2,291,528,120 in USD 2,450 23,382,940 in IDR 196 28,446,411,900 in KRW 2 2,275,712,952 in USD 5,300-7,800 26,339,270 in IDR 424 - 624 7,801,000 in KRW 5.0 - 7.0 624,080 in USD 650,083.33 7,223 in IDR 52,006.67 5,702,000 in KRW 601.93 456,160 in USD 316,777.78 5,280 in IDR 25,342.22 267,019,000 293.31 413,342.11 42","Classification Types of land Unit Branch line Quantity route (WTP) 0 Rangkas Bitung WTP Parung Panjang WTP Maja 4 WTPs \/ WTP Solear subtotal WTP Rangkas Bitung WTP Parung Panjang Total All 4 WTPs included Base exchange rate) IDR 13,500\/ KRW 1,080\/ USD 12.5 * * Our investigation team re-calculated an exchange rate based on the 2018 LA 10-4","Chapter 10. Social and environmental impact assessment Exchange rate Unit price for Compensation amount compensation in KRW (NJOP Max for land) 21,361,520 in USD 247,240 in IDR 33,067.37 - in KRW 382.72 - in USD - - in IDR - in KRW - 593,102,852 in USD 223,045,076 in IDR in KRW 2,276,825 in USD 66,364,158,450 in IDR 5,309,132,676 in KRW in USD 64,971,601 in IDR 28,911,120,500 in KRW 2,312,889,640 in USD in IDR 23,630,180 in KRW 28,446,411,900 2,275,712,952 26,339,270 124,314,793,702 10,120,780,344 in USD 117,217,876 ARAP. 43","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia \u2462 Procedure for resettlement decision \u25e6 conduct a primary F\/S on candidate sites for resettlement \u25e6 obtain an approval from the local government, and then conduct a formal F\/S and environmental investigation on the resettlement site. - pay a visit to the site and have a consultation - make a decision on a specific location of the resettlement site - review and discuss the resettlement and restoration plan according to available resources in the area - conduct monitoring and counselling re-settlers \u2463 Compensation for displacement of the resettled area \u25e6 compensation for physical displacement - resettlement assistance for the affected households: after making the asset compensation - construction of infrastructure (road, water service, electricity, temple): after making the asset compensation \u25e6 compensation for economic displacement - transitional cost assistance: for 2 months in the resettlement - capital assistance for the affected households: after displacement\/resettlement - capacity building program: for 2 months before the displacement\/resettlement 3) Public participation and consultation \u2460 Purpose \u25e6 to help local governments (authorities), residents, civic groups (NGOs) have a better understanding of a planned project \u25e6 to avoid unnecessary misunderstanding or conflicts in connection with a planned project \u25e6 to share opinions and views to reach an agreement on compensation matters and others \u2461 Stakeholders\/interested parties \u25e6 local governments of the relevant district or sub-district \u25e6 villages \u25e6 NGOs \u25e6 other related agencies \u2462 Main activities \u25e6 to collect\/listen to opinions from residents \u25e6 to express and share views and opinions \u25e6 to reach an agreement on compensation unit price and land acquisition 10-44","Chapter 10. Social and environmental impact assessment <Table 10.30> Public participation and consultation Public hearing Details First round [key agenda] (phase 1: on branch conveyance line) - on how a land whose owner is non-resident to be surveyed \u25e6 when\/where: July 5, 2018 and participated? \u2192 when surveying such land, BPN Maja Village Office (National Land Agency) is to be accompanied by residents of the community. - on how a household whose ownership cannot be verified to be compensated \u2192 BPN\u2019s certification of the land is to come first. - on fair compensation amount compared with other development projects \u2192 after checking the application Second round of NJOP, an appraisal team will evaluate the amount. (phase 1: on branch conveyance line) - land acquisition and compensation procedure are the same with those of other projects, and it usually takes a long time for land acquisition. - on when to compensate; when to survey and audit a land; and acquisition procedure for a land used for religious facilities (e.g. Waqf land \u2013 land intended for mosque or granted for other charitable purposes): once documentary evidence is submitted, the team tasked with land acquisition will take charge of and begin the acquisition procedure. land granted for religious purposes or charity will be separately considered. (e.g. land for land compensation) \/ 9 committees will review and decide on land compensation. [key agenda] - on compensation amount for the affected land? On the \u25e6 when\/where: July 6, 2018. area of influence? \u2192 the budget price will be estimated Sukamanah Village Office based on the NJOP, then see if it is accepted through public consultations. \/there are procedural steps that need to go through from the confirmation of the construction route to compensation. If evidential documents are all completed and confirmed, a speedy compensation is possible. - on the likelihood of the project site overlapping the Tangerang project \u2192 needs to be confirmed. Adjustable. 10-45","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia 10.4 Review of application of international environmental and social standards 10.4.1. Review of application mutatis mutandis of environmental and social legislation in Indonesia The current state of application mutatis mutandis of environmental and social legislation in Indonesia is obtained from the project execution agency, as shown in <Table 10.31>. <Table 10.31> Application mutatis mutandis of environmental and social legislation in Indonesia Classification Relevant legislation in Indonesia Application Gap \/ mutatis Whether to be supplemented mutandis Impact - Pursuant to Decree of Minister The AMDAL is No Gap: assessment by of Environment No. 05\/2012 on currently being The AMDAL needs to be screening and Screening Criteria, an official implemented prepared and submitted to approval for the AMDAL is according to the the Ministers of grading obtained (main conveyance line). screening and Environment and the grading under provincial government for - The need for the AMDAL the Indonesian an approval. approval on the entire law on the conveyance route including the environment. branch line is recognized. Environmental - Whether it is necessary to obtain (to be confirmed (To be confirmed) permit an additional environmental when the permit in relation to this project AMDAL is shall be decided through the submitted) AMDAL. Land use and - the location map of the project (to be confirmed (To be confirmed) development site and its neighboring region, when the which reflects the land use plan AMDAL is plan and development plan, shall be submitted) included in the AMDAL. Standards for - all sorts of items requiring (to be confirmed pollution when the control and environmental standards AMDAL is (To be confirmed) pollutants submitted) (air, water, applicable to this project shall be soil quality) included in the AMDAL. 10-46","Chapter 10. Social and environmental impact assessment Classification Relevant legislation in Indonesia Application Gap \/ mutatis Whether to be supplemented mutandis Land - The LARAP (land acquisition Satisfied the In order to make a acquisition and resettlement plan) shall be requirements of compensation based on the established and implemented in LARAP. unit price estimated by a and accordance with Law No.2\/2012 Needs public or general appraiser, resettlement on land acquisition for public implementation. under the principle of a free project; Presidential Decree PR negotiation by the purchaser No.71\/2012; and RI No. 5\/2012 and seller, information on Technical Guidelines on the disclosure and rounds of Implementation of the Land consultations aiming at the Acquisition. estimation of an appropriate and reasonable - An integrated LARAP for the compensation amount are entire route (phase 1 and 2 necessary. projects) was submitted on February 1, 2018. Employment - The employment plan in the (to be confirmed (To be confirmed) and labor law AMDAL report shall comply when the with the Indonesian labor law. AMDAL is Needs to be submitted. submitted) Indigenes - Pursuant to Regulation No. Land owned by (To be confirmed) 5\/1999 on Guidelines for Settling an entity who Customary Law Community has the Communal Rights Issues, if the customary right land owned by a community is not identified under customary law is subject to during the land acquisition, a plan for the LARAP survey. mitigation of the impact on the indigenous community shall be Need to be established. confirmed when taking a census of the affected population in the AMDAL region. 10-47","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia 10.4.2. Review of application mutatis mutandis of international environmental and social standards (1) Difficulty of reviewing application mutatis mutandis of international safeguards : the Indonesian project execution agency\u2019s environmental management plan Among the scope of this project, the AMDAL reports for the main conveyance route with the length of 47.95km were conducted in 2009 and 2013. But according to our investigation, the two reports already expired in March 2018, and are no longer valid. Therefore, there needs an additional review or supplementary measures when preparing a new AMDAL report. (2) International safeguard standards applied to this project This project is a pilot project funded by the KEXIM\u2019s EDPF, but the fund\u2019s safeguard policies and guidelines have yet to be fully established. On this account, the KEXIM requested that our team of consultants review the environmental management plan and the overall status of its preparation for this project based on international safeguards standards \u2013 EDCF Safeguard Policy, OECD Common Approaches, and IFC Performance Standards. (expressly specified in the Request for Proposal (RFP) of this project) We reviewed the LARAP which remained effective as of November 2018, and items to be applied to this project are shown as in <Table 10.32>. <Table 10.32> Application mutatis mutandis of international safeguards Safeguards Items applied to this project Notes EDCF General key principles of international Safeguard safeguard standards are reflected in terms of Policy environmental and social management. It is deemed that there are no special All requirements specifically instituted by the EDCF. (\uf0e0 that means, satisfying the international safeguards below is in conformity with the EDCF Safeguard Policy.) (requirements that are satisfied under the OECD Common Approaches) WB OP\/BP 4.01 Applied (obligations under the OECD (environmental assessment) Common Approaches) WB Safeguard WB OP\/BP 4.04 (natural habitat) Policies WB OP\/BP 4.36 (forest) Not confirmed yet (need to review an AMDAL report for WB OP\/BP 4.09 (pest control) renewal) WB OP\/BP 4.11 (physical cultural assets) 10-48","Chapter 10. Social and environmental impact assessment Safeguards Items applied to this project Notes WB OP\/BP 4.12 Applied (non-voluntary resettlement) WB OP\/BP 4.10 Not confirmed yet (need to review an (indigenes) AMDAL report for renewal) Need to be applied as specified in the RFP for this project IFC PS 1(assessment and Applied management of environmental \/ social risk and impact) IFC PS 2 Not confirmed yet (need to review an (labor and working conditions) AMDAL report for renewal) IFC IFC PS 3 Application is necessary. But it is not Performance (efficiency of resources and reviewed in this feasibility study. Standards (PS) pollution prevention) (instead, obligations under the OECD Common Approaches are applied.) (need to IFC PS 4 review an AMDAL report for renewal) (public health, safety, and security of community) Not confirmed yet (need to review an AMDAL report for renewal) IFC PS 5 (land acquisition and Applied non-voluntary resettlement) IFC PS 6 Not confirmed yet (need to review an (conservation of biological AMDAL report for renewal) diversity and sustainable management of living natural resources) IFC PS 7 (indigenes) IFC PS 8 (cultural assets) (requirements that are satisfied under the OECD Common Approaches) General standards Application is necessary. But it is not reviewed in this feasibility study. IFC EHG (instead, obligations under the OECD Guidelines Common Approaches are applied.) (need to review an AMDAL report for renewal) Sectoral standards Not applied. (not relevant to the type of this (\u201cEnvironmental, Health, and project) Safety Guidelines for Water and Sanitation\u201d) The requirements of the WB OP\/BP 4.10(environmental assessment) and IFC PS 1(assessment and management of environmental\/social risk and impact) are similar, and there is not much difference in the requirements of the WB OP\/BP 4.12 (non-voluntary 10-49","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia resettlement) and IFC PS 5 (land acquisition and non-voluntary resettlement) in terms of fundamental rule of harmony. Accordingly, safeguards standards in this feasibility study can be replaced by IFC PS 1 and IFC PS 5. In this feasibility study, the following international safeguard standards are applied to the submitted LARAP, and complementary measures are suggested in the case of a gap. <Table 10.33> International safeguards applied to the LARAP for this project (reflected in this feasibility study) IFC PS IFC PS 1 (assessment and management of environmental\/social risk and impact) IFC PS 5 (land acquisition and non-voluntary resettlement) When submitting an AMDAL report for renewal, the following international safeguards will need to be reviewed additionally. <Table 10.34> International safeguards that need to be applied when submitting an AMDAL report IFC PS IFC PS 3 (efficiency of resources and pollution prevention) IFC EHG Guidelines General standards When submitting an AMDAL report for renewal, the following international safeguards will need to be reviewed additionally. <Table 10.35> International safeguards that need to be reviewed for possible application when submitting an AMDAL report WB Safeguard Policies WB OP\/BP 4.04 (natural habitat) IFC PS WB OP\/BP 4.36 (forest) WB OP\/BP 4.09 (pest control) WB OP\/BP 4.11 (physical cultural assets) WB OP\/BP 4.10 (indigenes) IFC PS 2 (labor and working conditions) IFC PS 4 (public health, safety, and security of community) IFC PS 6 (conservation of biological diversity and sustainable management of living natural resources) IFC PS 7 (indigenes) IFC PS 8 (cultural assets) (3) Review of application mutatis mutandis of international standards on land acquisition and resettlement (LARAP) The results of the review on the IFC PS 1 (assessment and management of environmental\/social risk and impact) and PS 5 (land acquisition and non-voluntary resettlement) of the 2018 LARAP report are summarized as follows: 10-50","Chapter 10. Social and environmental impact assessment \u25cf Items including policy, legislation, survey and management plan, which are required by the IFC PS 1, are generally included in the LARAP. \u25cf An additional survey on the branch line, the influence of displacement, and interviews and consultations with the affected residents conducted after 2017 are deemed sufficient. \u25cf Most of the land to be acquired is used for agriculture, but the priority principle for the replacement land (land for land compensation) is not expressly specified. It is deemed desirable that (the agency) provides options for the land for land compensation, and if that is not possible, it clearly states reasons for a cash compensation, then it provides a livelihood assistance program for those affected. (materiality in compliance with international standards: high) \u25cf When tallying the affected households, the affected households is narrowly defined in the LARAP as those (households or individuals) who have the legal ownership of the land. According to such standards, the number of the affected households are estimated at 581 households for the first phase mainline project and 271 households for the second phase branch line project. It is deemed the estimation conforms to the narrow definition specified in international safeguards standards such as the EDCF Safeguard Policy and IFC Performance Standards. \u25cf Since those who have the customary ownership or live on land (tenant farmers, official\/unofficial renters, and unofficial re-settlers) are excluded in the calculation, the total number of the affected households is deemed to be underestimated. If those households left untallied are included, the number of households affected directly or indirectly will double. It is deemed necessary to recalculate the number by including various types of the affected households. (materiality in compliance with international standards: high) \u25cf As for the resettlement plan, (the LARAP) seems to suggest an appropriate compensation amount based on the unit price estimate and basic survey. But it does not specify the basis and principles for the estimation of the unit price as well as the procedure for negotiation with the affected community. The monitoring plan for the payment and management of compensation is not included, either. It is deemed necessary to be supplemented. (materiality in compliance with international standards: high) \u25cf Some items with high materiality (e.g. system to handle civil complaints, special consideration for the vulnerable) are not applied in the LARAP. Therefore, when preparing a supplementary LARAP and setting up a specific implementation plan, it is necessary to add these items to enhance the conformity to international safeguard standards. LARAP\u2019s application mutatis mutandis of international safeguards and items to be supplemented are as follows. 10-51","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K <Table 10.36> Current state of KSCS land acquisition and LA Performance standards \/ Project background and current state No. subsection 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] PS 1: assessment and management of environmental\/social risk and impact - an Environmental and \u25e6 there exist some laws \/ institution relevant 1.1 Social Policy to specific social issues (Para 5 & Para 6) \u25e6 the detailed list is included in this report 1.2 \u201cLegal Basis\u201d \u25e6 environmental\/social impact assessment for a project and response plan are included. \u25e6 details - field investigation and methodology (chapter 3) Environmental and - land information of the project area 1.2 Social Assessment and (chapter 4) Management Plan - cadastral survey of the project area (Para 5~Para 6) (chapter 5) - public participation and consultation (chapter 6) -implementation of the land acquisition and resettlement plan (chapter 7) - project implementation and budget 8 Materiality in compliance will be Y if a standard is mandatory under the country\u2019s law or the non-applicatio any. Materiality in compliance will be N when the normal management plan can complement or resolve such 10-5","KSCS), Indonesia ARAP\u2019s compliance with IFC PS compliance (Gap analysis) GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) nalysis is focused on social impact related to land acquisition and resettlement \u25e6 nation-local government-level organization- legislation is specified level policy \u25e6 needs more description about the needs to be project execution agency\u2019s N specified in the (PUSATAB, BBWS 3C) policies AMDAL report and organization on society and that will be environment submitted. \u25e6 as part of a social\/environmental impact assessment, the relevant survey and analysis on land\/asset It is necessary to acquisition are conducted. recalculate the - those who have the legal number of the affected ownership of the land to be Y households by acquired are calculated as the affected households. (mainline: 581 including households, branch line: 271 various types of households) the affected - the definition of the affected households. household applied in this calculation is considered too narrow compared to that of on of a such standard is regarded as having a high risk, which may result in the suspension of a project if h issue. 52","Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] (chapter 8) \u25e6 actual land acquisition and compensation, and resettlement plan are specifically described from chapter 6 to 8. [chapter 3.4 and 6.1] \u25e6 primary data - field investigation, interview, dialogue, discussion, workshop \u25e6 secondary data - conveyance system plan, dam 1.3 Baseline data collection management, population, social\/ economic\/ cultural data - reference \u00b7 the existing LARAP report \u00b7 project design \u00b7 data related to land ownership in the project area \u00b7 state of land use 1.4 Associated Facilities \u25e6 not mentioned in the LARAP report \u25e6 gap analysis is necessary after reviewing the AMDAL report that will be submitted 10-5","Chapter 10. Social and environmental impact assessment GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) international safeguard standards. (ECDF Safeguard Policy, IFC PS) - the total number of the affected households is underestimated since those who have the customary ownership or live on land (tenant farmers, official \/ unofficial renters, or unofficial re-settlers are excluded in the calculation. \u25e6 no significant gap found N\/A N\/A \u25e6 after the installation of the branch (TBD) As part of the e conveyance line, an annexed piping AMDAL or separately work is needed to connect the 53","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] 1.5 Analysis of Alternatives Assessment of 1.6 Cumulative and\/or Trans boundary impacts Emergency Preparedness and 1.7 Response Plan (Para 20 ~Para 21) Management Systems, \u25e6 management system related to land Monitoring, and acquisition and resettlement compensation 1.8 is specified in chapter 8 \u201cproject Review (Para 13) implementation and budget planning.\u201d Organizational \u25e6 (local government\u2019s) organizational 1.9 Capacity and capability to implement and manage is briefly mentioned in chapter 2.1.2. Competency (Para 17~Para 19) 10-5","KSCS), Indonesia GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) branch line to individual N\/A sometime later, buildings\/households. (TBD) an extra survey on associated N\/A facilities is needed to be \u25e6 when reviewing the AMDAL report conducted. that will be submitted, it is necessary to see if the cumulative N\/A and trans-boundary impacts should be assessed. If necessary, the cumulative impact assessment will be conducted as part of the AMDAL. \u25e6 (needs to be reflected in the (TBD) N\/A AMDAL) \u25e6 plans for monitoring and review in Monitoring and connection with land acquisition and Y review plans resettlement compensation are not need to be described. included. \u25e6 local government\u2019s organizational Such structure is included but there is no N information further information about the division or person in charge, his\/her needs to be included in the 54","Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] Stakeholder Analysis [chapter 6.1~6.3] \u25e6 Public Consultation Meeting 1.10 and Engagement - interested parties\/stakeholders Planning \u00b7 the government of Tangerang district (Para 26~Para 28) \u00b7 the government of the sub-district \u00b7 village-level government Consultation and \u00b7 NGOs 1.13 Disclosure of - purpose: to help all interested parties in the project area have a better understanding of Information a planned project [chapter 6.2] \u25e6 the result of three rounds of public hearings held in Lebak, Tangerang, and South Tangerang City is described in chapter 6.2. - local governments, local community, NGOs -project background, construction plan, general information \u25e6 purpose - to avoid unnecessary misunderstanding and conflicts which may arise from the implementation of a planned project 10-5","Chapter 10. Social and environmental impact assessment GAP analysis Materiality in Complementary Compliance8 measures capacity and responsibility, budget and resource allocation. (Y\/N) enhanced LARAP report that will be prepared. \u25e6 stakeholder analysis mapping table Such is not included in the LARAP report. information \u25e6 stakeholder participation needs to needs to be continue throughout the entire included in the process of a project. N enhanced \u25e6 a number of participation activities LARAP report are merely listed in the report, but that will be prepared. the implementation plan is not included. \u25e6 information disclosure and Such implementation plan is not included information in the LARAP report. needs to be included in the N enhanced LARAP report that will be prepared. 55","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] \u25e6 main activities - collect opinions from local residents - share and exchange views and opinions - reach an agreement on compensation amount and land acquisition \u25e6 key points\/ground rules - when it comes to land acquisition in the project area, an agreement among owners of land, building, crops, or other commodities is important. At the same time, equal participation of residents needs to be encouraged. \u25e6 expected benefits - transparency - active participation - fairness - procedure for obtaining consent of interested parties Non-Technical \u25e6 there is no proper summary of a project in 1.14 Summary the LARAP report; needs to be included when preparing a report for renewal. (NTS) 10-5","KSCS), Indonesia Materiality in Complementary GAP analysis Compliance8 measures (Y\/N) Such information needs to be included in the -N enhanced LARAP report that will be prepared. 56","Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] External \u25e6 not mentioned in the LARAP report 1.15 Communications and Grievance Mechanisms (GM) 1.16 Ongoing Reporting to Affected Communities PS 5: Land Acquisition and Non-voluntary Resettlement \u25e6 three alternative lines are suggested in the Project Design (Para 8) LARAP report, but they are merely : an analysis of conceptual ideas for a third phase project, alternatives is which is different from the scope of this 5.1 conducted to avoid \/ project \u2013 main conveyance line (phase 1) prevent physical and and branch conveyance line. economic \u25e6 it is hard to say that such alternatives serve displacement as a great option to avoid\/prevent physical and economic displacement. Compensation and [chapter 8.3] Benefits for Displaced o basis of pricing (rice paddy, garden, yard) 5.2 Persons (Para 9): 1) market prices in the local community \u25e6 shall provide various 2) Selling Value of Tax Objects (NJOP) 10-5","Chapter 10. Social and environmental impact assessment GAP analysis Materiality in Complementary - Compliance8 measures - (Y\/N) Needs to be supplemented in N\/A the enhanced LARAP report that will be prepared. Needs to be supplemented in N\/A the enhanced LARAP report that will be prepared. \u25e6 whether they are considered in the (TBD) Needs to be design to avoid physical and supplemented in economic displacement is not the enhanced clarified. LARAP report that will be prepared. o according to the LARAP report, the Needs to be bases of pricing land or obstruction supplemented in are Y the enhanced 1) market prices in the local LARAP report 57","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] assistance programs so 3) result of survey and interviews with as to recover the residents quality of affected residents\u2019 lives to o Most of the land to be acquired is used for where it was before or agriculture, thus the livelihood of most make it better. affected households depends on land. \u25e6 compensation amount Nevertheless, the replacement land (land for shall be based on the land) is not considered one of the full replacement cost compensation measures. \u25e6 for those who live on land, (whose livelihood depends on land), \u201cland for land\u201d shall be the priority compensation option \u25e6 in principle, \u201cno compensation, no resettlement\u201d \u25e6 provide relocation and resettlement assistance \u25e6 share benefits that a project will bring 10-5","KSCS), Indonesia GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) community; that will be 2) selling value of tax objects prepared. (NJOP); and 3) result of survey and interviews with residents o Compensation amounts estimated on each basis are presented. o this multifaceted approach in estimation of the compensation amount is great for the groundwork to conform to the principle of full replacement cost based on market prices. However, which one is better and chosen, and why so are not explained. o the project execution agency and local government (e.g. governor) need to present the final compensation amount based on the given information and through sufficient negotiations with affected residents. o needs to reconsider the compensation option \u2013 if the land for land compensation is not possible, the reason why cash compensation is inevitable needs to 58","Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] [chapter 6.2 public consultation and Community communication] 5.3 Engagement \u25e6 governmental agencies, villages, NGOs, (Para 10) and other related institutions -to promote public relations of the government and encourage communication - consultants individually hold a meeting in the local community and collect and share Grievance Mechanism views and opinions about a planned project 5.4 \u25e6 open forum for all interested parties (Para 11) - to reach an agreement on unit price for compensation (land, building, and crops) Resettlement and - to share values agreed by a team set up by Livelihood Restoration the local government and land owners \u25e6 Grievance Mechanism is not included in the 5.5 Planning and LARAP report Implementation \u25e6 as for resettlement, it is said in chapter 8.2.1 (Para 12~Para 16) that a team tasked with resettlement Physical Displacement implementation will develop resettlement 5.6 (Para 19~Para 24) options for residents to choose. Economic 5.7 Displacement (Para [chapter8.2.1.1 \u201cprocedure for 25~Para 29) resettlement decision] 10-5","Chapter 10. Social and environmental impact assessment GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) be specified. At the same time, a livelihood assistance program can be provided for affected residents. \u25e6 stakeholder participation shall Needs to be continue throughout the entire supplemented in process of a project: but in the Y the enhanced LARAP report, only activities are LARAP report listed without setting up any follow- that will be up implementation plan. prepared. \u25e6 not included in the LARAP report Needs to be supplemented in the enhanced Y LARAP report that will be prepared. \u25e6 no significant gap found N\/A N\/A \u25e6 no significant gap found N\/A N\/A \u25e6 no significant gap found N\/A N\/A 59","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (K Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] \u25e6conduct a primary F\/S on candidate sites for resettlement \u25e6obtain an approval from the local government, and then conducts a formal F\/S and environmental investigation on the resettlement site. - pay a visit to the site and have a consultation - make a decision on a specific location of the resettlement site - review and discuss the resettlement and restoration plan according to available resources in the are - conduct monitoring and counselling re- settlers [chapter8.2.1.3, table 8.1] \u25e6compensation for physical displacement - support relief allowance to affected residents: build infrastructure (road, water, electricity, temple) after making the compensation for asset: after making the compensation for asset [chapter 8.2.1.3, table 8.1] \u25e6compensation for economic displacement -transitional cost assistance: for two months 10-6","KSCS), Indonesia Materiality in Complementary GAP analysis Compliance8 measures (Y\/N) 60","Performance standards \/ Project background and current state subsection No. 2018 LARAP [includes main line (phase 1) + branch line (phase 2)] in the resettled region - transitional cost assistance: for 2 months in the resettlement - capital assistance for the affected households: after displacement \/ resettlement - capacity building program (improve technique): for 2 months before the displacement\/resettlement 10-6","Chapter 10. Social and environmental impact assessment GAP analysis Materiality in Complementary Compliance8 measures (Y\/N) 61","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia 10.5 Follow-up requirements for implementation 10.5.1 Renewal and approval of the AMDAL for the entire route of this project The AMDAL prepared for the main conveyance line connecting the Karian dam and the Serpong water treatment plant with the length of 47.9km is already expired. Under the relevant law amended in 2012, it is mandatory either to revise the existing AMDAL or to prepare a new one. Since an AMDAL for the branch conveyance pipeline extending to four water treatment plants \u2013 Rangkas Bitung, Maja, Solear, and Parung Panjang WTPs has never been prepared, a new AMDAL needs to be written. The final approval of the AMDAL is authorized by the Governor of the Banten province, the project area, whereas the examination and approval-related affairs are performed by the Environmental Agency of Banten province. 10.5.2 Application of international safeguard standards to the existing AMDAL and supplement The project execution agency (PUSATAB, BBWS C3) is currently preparing an integrated AMDAL for the main and branch conveyance pipelines to obtain an approval from the Governor of Banten province by early 2019. Upon receipt of a new AMDAL report that is effective and valid, the KEXIM will review the report through consultations with the project execution agency; check if all the relevant environmental standards and safeguards including the Indonesian legislation and international safeguards (specifically, IFC PS 2, PS 4, PS 6, PS 7, PS 8) are applied and whether it is necessary to apply IFC EHS standards. If a significant gap is found, the KEXIM suggests mitigation\/management measures per item and then prepares a comprehensive environmental and social management plan. Meanwhile, the installation of the branch conveyance pipeline is identified as the associated facilities in the future. Hence, it would be desirable that a comprehensive Area of Influence that includes such facilities be prepared and the corresponding impact assessment be conducted in enhanced\/renewed LARAP and AMDAL reports. 10.5.3 Land acquisition and compensation Matters to be considered in land acquisition are as follows: - to prepare a LARAP and related documents to be submitted to the Governor of the Banten province - to implement land acquisition and assessment - to announce land acquisition - land compensation and resettlement of the affected residents The land acquisition process is as follows: the Banten province begins negotiations with the 11-62","Chapter 11. Social and Environmental Impact Assessment landowners in accordance with the location statement prepared by the project execution agency. As for the land whose negotiation is finished, the project execution agency compensates the landowners before the construction begins. It is ideal that a more specific implementation plan be established to comply with principles on land acquisition, compensation, and resettlement mandated by the EDCF Safeguard Policy and IFC PS 5. A continuous monitoring is also essential to ensure the complete implementation of the plans across the board. 10.5.4 Considerations for land acquisition and compensation (LARAP) of this project (phase 1 main conveyance line) As shown in <Table 11.29>, it is recommended that the LARAP be enhanced to conform to international safeguard standards by considering the following items. 1) When tallying the number of affected households, those who do not have the legal ownership of the land need to be included. 2) When estimating the compensation amount, the principle of the full replacement cost needs to be reflected. 3) The compensation amount and policy need to be determined through rounds of consultations with residents. 4) The land for land (replacement land) compensation need to be considered and more livelihood assistance programs are needed. 5) The mechanism for handling civil grievance needs to be set up. 6) The monitoring system for project implementation and operation of the facility is needed. 7) Protection measures for the vulnerable including women are needed. 10-63","Chapter 11. Conclusion Chapter 11. CONCLUSION 11.1 Overview Karian \u2013 Serpong Water Conveyance System Project includes a construction project for the Karian dam to be completed by the latter half of 2019 and a project that connects the dam and the Serpong water treatment plant, which is carried out under PPP to supply water to the JABOTABEK region. To properly operate the dam and the WTP, the conveyance system connecting the dam and the WTP needs to be constructed. More importantly, the Karian dam is expected to be filled with water by 2020, therefore, it is urgent to begin the construction of the conveyance system. Against this backdrop, the Indonesian government requested for an emergency funding from the South Korean government, and the Korea Export-Import Bank has taken on this feasibility study for an investment under its Economic Development Promotion Fund. Our consultants assigned to this feasibility study have conducted an exhaustive, comprehensive review on the previous masterplan, feasibility study, and design drawings, and a number of field studies. We have also had multiple rounds of consultations with government officials fromthe project execution agency \u2013 PUSATAB, the Ground Water and Raw Water Center of the Directorate General of Water Resources under Ministry of Public Works and Housing and BBWS C3 (BalaiBesar Wilayah Sungai Cidanau, Ciujung, Cidurian), a provincial agency in charge of the three river areas, and analyzed technical, economic, political feasibility and socio environmental implications. This chapter provides conclusions from our feasibility study. 11.2 Technical feasibility 11.2.1 Raw water allocation plan The water demand by area and the Indonesian government\u2019s water resource supply plan (POLA) were taken into consideration in the phased raw water allocation plan to meet the demand of the target year of 2021 and 2031, and the details are as shown in <Table 11.1>. Raw water allocation plan by WTP is shown as in <Table 11.2>. 11-1","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia <Table 11.1> Raw water allocation plan by phase Area Service area Sum Karian Dam PK dam (unit:m3\/sec) Phase Phase Phase 2 Planned WTP Grand total 17.9 100% 13.5 64.5% 12 3.3 Solear WTP Total 9.5 14.6 6.55 2.3 3.6 29.0% 11.2 6.55 Serpong WTP Sub total 4.65 2.55 1.3 1.8 14.5% 1.15 1.15 Rangkas Bitung \/ Tangerang 0.5 Maja WTP regency 2.0 16.1% 0.65 0.65 0.5 Not included in South 0.6 4.9% 0.75 0.75 - this project area Tangerang - 0.7 0.6 - - (PetirWTP) city 0.3 - Ciujung river 0.5 0.7 - - Parung Panjang Domestic Tangerang 4.0 0.3 - - 0.5 - 1.0 WTP Banten water city 0.2 1.6% 6.55 4.0 Serpong WTP 4.2 33.9% West Lebak 0.2 - Java regency 3.2 - Jakarta Serang regency Serang city Cilegon city Channel flow for maintenance Bogor regency West Jakarta <Table 11.2> Raw water allocation plan by WTP Water allocation plan Classification Total Phase 1 Phase 2 Service area m3\/sec m3\/day m3\/sec m3\/day m3\/sec m3\/day Total 13.9 1,200,960 8.05 695,520 5.85 505,440 Rangkas 0.4 34,560 0.4 34,560 - - Lebak regency Bitung Maja 0.2 17,280 0.2 17,280 - - Lebak regency Solear 3.6 311,040 1.15 99,360 2.45 211,778 Tangerang regency Parung 0.2 17,280 0.2 17,280 - - Bogor regency Panjang Serpong Tangerang city, South 8.0 691,200 4.6 397,440 3.4 293,760 Tangerang city, West Jakarta Petir 1.5 129,600 1.5 129,600 - - Not included in this project area 11-2","Chapter 11. Conclusion 11.2.2 Facility outline The facility outline of the Karain \u2013 Serpong Conveyance system without an intake tower and conveyance tunnel, which were excluded by the Directorate General of Water Resources (SDA), is shown as in <Table 11.3>. <Table 11.3> Facility outline Classification Target Work field Main facility year \u2460 Civil work \u2219 Conveyance pipeline \u2013 main pipeline D2,000mm, L=47.9km \u2461 Architecture work \u2219 Booster pumping station 1 unit Phase 1 \u2462 Mechanical \u2219 Booster pump 1.0m3\/sec.unit x 7 units 2021 work \u2219 regulating pump 0.5m3\/sec.unit x 2units Phase 2 2031 \u2463 Electric work \u2219 power lead-in equipment 1 unit \u2219 power distribution equipment 1 unit \u2464 Instrumentation and control work \u2219 integrated monitoring control system 1 unit \u2460 Conveyance \u2219 flowrate metering equipment 1 unit pipeline \u2013 main pipeline \u2219 D2,000mm, L=36.0km Total 47.9km \u2219 D1,800mm, L=11.9km \u2461 Conveyance \u2219 D1,350mm, L=4.75km (Solear) pipeline \u2013 branch \u2219 D600mm, L=8.56km (Rangkas Bitung) pipeline \u2219 D600mm, L=4.80km (Parung Panjang) Total 19.31km \u2219 D350mm, L=1.20km (Maja) \u2219 booster pump 1.0m3\/sec. unit x 6 units \u2462 Mechanical \u2219 regulating pump 0.5m3\/sec. unit x 2units work \u2219 RangkasBitungsystem pump 0.40m3\/sec.unitx 2 units \u2463 Electric work \u2219 power distribution equipment 1 unit \u2464 Instrumental and \u2219 flow rate metering equipment 1unit control work 11-3","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia 11.2.3 Adequacy of the hydraulic system According to the master planning and development basic scheme of the Karain \u2013 Serpong conveyance system and water treatment plant PPP (a 2014 report), a high-head pump system with a height of 86m is planned to supply raw water to the Serpong and Parung Panjang water treatment plants whereas a low-head pump system with a height of 47m is planned to supply raw water to the Solear water treatment plant. This feasibility study, however, introduces a single hydraulic system with dual pipelines connecting the Serpong, Parung Panjang, Solear, and Maja water treatment plants, except the Rangkas Bitung water treatment plant located at a high ground level. The single hydraulic system with dual pipelines has a number of merits as follows: \u2460 It conveys water without interruption by blocking a junction and repairing a damaged area, in case of an emergency or unexpected accident such as a pipeline damaged by an external shock or leakage at a corroded area due to the deterioration of the pipeline. \u2461 It allows of a periodic inspection by partially stopping its operation without cutting off the water conveyance, which extends the service lifeof the pipeline. \u2462 The interconnected dual conveyance pipeline standardizes the water pressure within the pipelines, which decreases the risk of leakage accidents by reducing a peak hydraulic head, which can be found in the single conveyance pipelines, and saves electricity costs by eliminating waste of the residual hydraulic head. The conceptual diagram of the single hydraulic system with dual conveyance pipelines is as shown in <Figure 11.1>. <Figure 11.1> Single hydraulic system with dual conveyance pipeline 11-4","Chapter 11. Conclusion 11.2.4 Adequacy of the selection of pumps The water level at the dam is designed to change by up to maximum 21.5m, between high water level of (+) 67.5m and low water level of (+) 46.0m depending on whether it is drought or rainy season. In this feasibility study, the hydraulic calculation is made based on the mean water level of (+) 56.4, the most frequently operated level, and the corresponding pump head is determined. In this case, the pump still deviates from the operating line when operated at the high and low water levels, but given the low frequency of such cases, it is deemed not to disrupt the operation of the pump station as a whole. <Figure 12.2> shows an efficiency curve of the pumps produced by South Korean pump maker H. Line A is an operating point at the mean water level, line B is an operating point at the high water level, and line C is an operating point at the low water level of (+) 46.0m. Curve C-A-B is an efficiency curve at phase 1 and curve C0-A0-B0 is an efficiency curve at phase 2 with the single hydraulic system with two lines. This shows the pump used in the first phase can also be used in the second phase as it is, by processing the impeller. <Figure 11.2> Efficiency curve and operating line of the booster pump 11-5","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia The efficiency of the pump in each phase is shown in <Table 12.4>. Although the flow rate of the pump decreases in the low water level, this will not be a cause of concern since this period is an emergency, which is less likely to occur. <Table 11.4> Changes in operating point depending on water levels Water level at a dam (m) Phase 1 flow rate Pump head H.W.L (+)67.5 38.93m 4,500 CMH (1.25 CMS) M.W.L (+)56.43 50m 3,600 CMH (1.0 CMS) L.W.L (+)46.0 2,500 CMH (0.70 CMS) 60.43m 11.2.5 Adequacy of the selection of a steel pipe and its construction The project execution agency (PUSATAB) wants a design life of the steel pipe to be 50 years. To maintain the desired lifespan, our consultants studied whether it is possible to source steel pipes of good quality from Indonesia. We paid a visit to a number of local steel pipe makers to have consultations and conduct an actual inspection. According to our investigation, they are capable of producing straight pipes but incapable of applying fusion bonded epoxy coating method for the inner surface painting. As for the outer surface painting, it is impossible for them to work on the steel pipe with a large diameter of more than 1,200mm. In Korea, the fusion bonded epoxy coating is used to paint the inner surface of a steel pipe. In this method, the inner surface is painted with epoxy powder melted at high temperatures ranging from 180-250 \u2103 and with th Korean industrial standards. Until 1993, asphalt enamel and coal tar enamel were used as the painting material In Korea. However, they are discarded in Korean Industrial Standards on the grounds that they are easily damaged, poorly attached, and environmentally hazardous, and no longer used in advanced countries including Korea. It will be difficult for local makers to invest in additional PE coating machine for the large pipe, secure skilled technicians, and assure quality in a short period of time. Therefore, it seems reasonable that we source steel pipes less than 1,200mm in diameter from Indonesian companies and steel pipes larger than 1,200mm from Korea. 11.2.6 Automatic field welding and nondestructive testing In the construction of the conveyance pipeline, welding is an essential process to connect steel pipes. Considering the fact that most accidents after construction arise from poorly connected joints, the precision in the field welding is undoubtedly the core area of the pipe installation. 11-6","Chapter 11. Conclusion Unfortunately, it is not always easy to hire a large number of skilled welders who are capable of performing precision welding, in a short period of time when there is a lot of welding workload in the construction site. This will affect the construction period as well as construction cost. High performance is all the more important to secure the quality of welding, but poor working conditions may hinder quality assurance and cause safety accidents such as a welder getting an electric shock, falling, and being buried. All things considered, it is necessary to adopt an automatic welding device to achieve a precise welding, assure good quality, and construct safely and economically within a given period of time. Furthermore, nondestructive testing needs to be carried out in order to test the quality of the weld zone. The radiography is one of the widely used volumetric examination techniques in Korea to detect defects inside the welded joints. In nondestructive testing, any incomplete part caused by welding is called discontinuity. If such discontinuity goes beyond the allowable range for the use of a test object, it is called a defect. Whether to allow discontinuity depends on the type, size, and location of discontinuity. The radiography, which easily identifies the features of discontinuity, is widely used to search defects in the weld zone. Pursuant to the industrial standards in most advanced countries such as ASME, the nondestructive testing shall be implemented at no less than 5 percent of weld points. Disqualified weld joints shall go through rewelding, then double the number of disqualified weld joints shall be subject to the nondestructive testing. Any weld joints that are not subject to nondestructive testing shall go through either hydraulic pressure test or air tightness test. 11.3 Project execution plan 11.3.1 Necessity of working design There exist a feasibility study and a master planning for the Karian dam and KSCS1 conveyance route, which were conducted by the Korea Rural Community Corporation (KRC) under the fund from Korea International Cooperation Agency (KOICA) back in 2006, but it has great error as a report for an invitation for bids or constructions as described below, and its documents were poorly prepared and outdated. \u2460 The raw water allocation plan upon the completion of the Pasir Kopo dam was not into account. \u2461 The hydraulic system needs to be changed to the single hydraulic system with dual lines in order to stabilize the system. \u2462 The existing plan had neither specification design for the booster pump nor countermeasures against water hammer. \u2463 Considering the final phase, there was not enough installation space for the booster pump. 11-7","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia \u2464 The water hammer phenomenon in the conveyance system was not analyzed in the existing plan, and a prevention device was not planned, either. \u2465 The existing plan did not have any plan for incoming electricity from PLN to operate the booster pump. \u2466 The existing plan did not come up with any plans to assure the quality of steel pipe welding and prevent against corrosion, which is necessary to secure more than 50 years of design life for the conveyance pipeline. \u2467 In a new design drawing, errors listed above need to be corrected and designed to make the actual construction possible. \u2468 Specifications, which shall constitute a part of a contract\/agreement and serve as a basis for quality standards, was omitted from the existing design drawing. \u2469 The Bill of Quantities (BOQ) was not prepared in detail. As identified above, the existing design drawing is deemed to fall far short of a report for bids or constructions as it has too many errors and omissions and lacks clear quality standards. To stabilize the hydraulic system across the board and to establish clear quality standards for each process, it is inevitable that a new working design should be made. 11.3.2 Necessity of employment of Korean consultants To assure performance and quality of the accomplishment, project execution agencies (PUSATAB and BBWS C3) need to implement this project in accordance with the terms and procedures agreed with the Export-Import Bank of Korea and, on key issues, receive an approval from the Bank. These works require a high level of expertise and experience that meet the requirements by the Bank. \u2460 To maximize the benefits of a financing program (loan agreement) \u2461 To meet international quality standards \u2462 To introduce an advanced quality management method for materials and construction \u2463 To transfer technology in water supply system \u2464 To facilitate smooth communication between project execution agencies and the Export- Import Bank of Korea Under these circumstances, employing Korean consultants will lay the foundation for a successful implementation of this project and serve as a means of securing performance and quality. This will also provide an invaluable opportunity for the Indonesian project execution agencies where they learn on advanced water supply technology directly from Korean engineers. 11-8","Chapter 11. Conclusion 11.4 Political feasibility It is difficult to quantify and include political factors in a cost-benefit analysis, but they are surely important elements to be considered in deciding whether to implement a project. Criteria for political feasibility analysis are as shown in <Table 11.5>. <Table 11.5> Factors for political feasibility analysis No. Factors Description Necessity of project \u2022 Current state of a region and necessity of a 1 investment and adequacy project investment of financing \u2022 Adequacy of financing \u2022 Adequacy of the timing of a project implementation Balanced regional \u2022 Ripple effect on the local economy 2 \u2022 Poverty reduction \u2022 Potential for economic growth development Consistent implementation \u2022 Consistency with high-level plans of policies and will to 3 \u2022 Determination and preference to push for a implement project \u2022 Preparedness for a project Determination to push for \u2022 Will of project execution agencies 4 a project and cooperation \u2022 Support system of the central government from related agencies \u2022 Support system of the provincial government Risk factors in \u2022 Environmental review 5 \u2022 Additional data may be needed in project implementing a project implementation \u2022 Comprehensive measures to protect water source 11-9","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia 11.5 Economic and financial feasibility 11.5.1 Economic feasibility (1) Economic analysis Economic analysis for this feasibility study was conducted on two cases such KSCS project only and KSCS combined with Serpong WTP project to achieve benefits of KSCS project. <Table 11.6> Result of Economic analysis Case Discount Present value of Present value of NPV B\/C Rate cost benefit (thousand Ratio (thousand USD) (thousand USD) USD) 1.19 KSCS only 9% 347,399 412,098 64,699 1.38 9% 512,613 707,075 KSCS + 194,461 Serpong WTP When the construction cost, operating cost, or benefits applied in the economic analysis changes, NPV, B\/C ratio, and IRR also change as shown <Table 11.7>. <Table 11.7> Sensitivity analysis by B\/C change Case Sensitivity NPV IRR(%) B\/C Ratio (thousand USD) Base - 64,699 1.19 11.07 29,959 1.08 9.89 Case 1 10% increase in costs (4,959) 0.99 8.87 23,489 1.07 9.77 Case 2 20% increase in costs (17,721) 0.95 8.40 KSCS only 10% decrease in benefits (11,251) 0.97 8.66 194,461 1.38 13.40 Case 3 143,200 1.25 12.02 91,939 1.15 10.82 Case 4 20% decrease in benefits 123,754 1.24 11.87 53,493 1.10 10.27 Case 5 Combination of case 1 and 3 72,493 1.13 10.57 Base KSCS + Case 1 10% increase in costs Serpong Case 2 20% increase in costs Case 3 10% decrease in benefits WTP Case 4 20% decrease in benefits Case 5 Combination of case 1 and 3 11-10","Chapter 11. Conclusion (2) Analysis result To summarize the result of the economic feasibility analysis on the construction and operation of the Karain \u2013 Serpong conveyance system, the net present value of benefits is 64,699 thousand USD, the benefit\/cost ratio is 1.19, and IRR is 11.07 percent. The discount rate that makes NPV zero, (that is, IRR at which the present value of benefit is equals to the present value of cost, or B\/C ratio becomes one) is 11.07 percent, greater than the applied discount rate of 9 percent. So, this KSCS project is confirmed economically feasible. Furthermore, the economic result combined with KSCS and Serpong WTP is expected to be more feasible with NPV 194,461 thousand USD, B\/C ratio 1.38, and IRR 13.40 percent. The investment cost for KSCS including construction as well as maintenance cost for 50 years is estimated 58% of the grand total investment cost including Serpong water treatment project. \u201cBenefit\u201d is distributed in accordance with the share of portion of investment cost to the KSCS project. But the result of economic analysis, B\/C ratio for KSCS only is calculated 1.19 and 1.38 including Serpong water treatment plant project which doesn\u2019t show significant difference considering portion of investment cost. The reason is identified that the investment cost for Serpong water treatment plant project is smaller than KSCS at the beginning stage of project but the maintenance cost including chemical & electric cost is much higher than KSCS, but the discount rate is applied to the maintenance cost which highly affects to the \u201cCost\u201d to Serpong water treatment project. 11.5.2 Financial feasibility In this project, the EDPF is basically limited to the Karian \u2013 Serpong conveyance system (KSCS) project, so the scope of this financial feasibility analysis also needs to be limited to the KSCS project. Nevertheless, the KSCS is not a project that seeks profits and its operating budget will be fully funded by the Indonesian government, therefore we do not conduct the financial feasibility analysis. 11.6 Environmental and social effect assessment 11.6.1. Environmental and social impact grading system As clearly specified in the EDCF Safeguard Policy and IFC Performance Standards (PS 1), the project execution agency of the recipient country shall identify environmental\/social impact and risks in the initial stage of the project preparation, predict the likely magnitude and consequences of such impact and risks by thoroughly reviewing their types, sizes, and locations, and establish an environmental\/social management measures corresponding to the prediction. 11-11","Feasibility Study for Karian \u2013 Serpong Raw Water Conveyance System (KSCS), Indonesia This project is a massive civil engineering\/construction project that has great environmental and social impact on the local economy, thereby requiring the resettlement plan. Which means that once this project is implemented, there will have irrevocable environmental and social impact. Therefore, it is fair to say that this project will be classified as Category A. 12.6.2 Planning and preparation of environmental and social impact assessment (1) Renewal and approval of AMDAL The AMDAL prepared for the main conveyance line connecting the Karian dam and the Serpong water treatment plant with the length of 47.9km is already expired. Under the relevant law amended in 2012, it is mandatory either to revise the existing AMDAL or to prepare a new one. (2) Current state of LARAP The latest LARAP was prepared in 2017 for the main conveyance pipeline with the length of 47.9km. It surveyed potential houses and area to be affected by the construction of the Karian \u2013 Serpong conveyance system to prepare for the land acquisition. The project execution agency submitted an integrated LARAP on the entire project route which includes the branch line with the length of 17.5km, in September 2018. 12.6.3 Follow-up requirements for implementation (1) Renewal and approval of the AMDAL for the entire route of this project The AMDAL prepared for the main conveyance line connecting the Karian dam and the Serpong water treatment plant with the length of 47.9km is already expired. Under the relevant law amended in 2012, it is mandatory either to revise the existing AMDAL or to prepare a new one. Since an AMDAL for the branch conveyance pipeline extending to four water treatment plants \u2013 Rangkas Bitung, Maja, Solear, and Parung Panjang WTPs has never been prepared, a new AMDAL needs to be written. (2) Application of international safeguard standards to the existing AMDAL and supplement Upon receipt of a new AMDAL report that is effective and valid, the KEXIM will review the report through consultations with the project execution agency; check if all the relevant environmental standards and safeguards including the Indonesian legislation and international safeguards (specifically, IFC PS 2, PS 4, PS 6, PS 7, PS 8) are applied and whether it is necessary to apply IFC EHS standards. If a significant gap is found, the KEXIM suggests mitigation\/management measures per item and then prepares a comprehensive environmental and social management plan. Meanwhile, the installation of the branch conveyance pipeline is identified as the associated facilities in the future. Hence, it would be desirable that a comprehensive Area of Influence 11-12","Chapter 11. Conclusion that includes such facilities be prepared and the corresponding impact assessment be conducted in enhanced\/renewed LARAP and AMDAL reports. (3) Land acquisition and compensation Matters to be considered in land acquisition are as follows: - to prepare a LARAP and related documents to be submitted to the Governor of the Banten province - to implement land acquisition and assessment - to announce land acquisition - land compensation and resettlement of the affected residents The land acquisition process is as follows: the Banten province begins negotiations with the landowners in accordance with the location statement prepared by the project execution agency. As for the land whose negotiation is finished, the project execution agency compensates the landowners before the construction begins. It is ideal that a more specific implementation plan be established to comply with principles on land acquisition, compensation, and resettlement mandated by the EDCF Safeguard Policy and IFC PS 5. A continuous monitoring is also essential to ensure the complete implementation of the plans across the board. (4) Considerations for land acquisition and compensation (LARAP) of this project (phase 1 main conveyance line) (summary) When preparing an improved AMDAL report, it is recommended that the LARAP be enhanced to conform to international safeguard standards by considering the following items. 1) When tallying the number of affected households, those who do not have the legal ownership of the land need to be included. 2) When estimating the compensation amount, the principle of the full replacement cost needs to be reflected. 3) The compensation amount and policy need to be determined through rounds of consultations with residents. 4) The land for land (replacement land) compensation need to be considered and more livelihood assistance programs are needed. 5) The mechanism for handling civil grievance needs to be set up. 6) The monitoring system for project implementation and operation of the facility is needed. 7) Protection measures for the vulnerable including women are needed. 11-13"]