BALI URBAN INFRASTRUCTURE PROJECT “Umbrella” Environmental Impact Assessment

INDONESIA Fourth most populous country: 200 plus million Over 10,000 islands, many uninhabited President Suharto in office from mid 60s to late 90s Economic growth averaged about 7% for three decades Poverty largely alleviated, but many near poor Highly centralized till the late 90s -Political, administrative, fiscal Large Bank borrower: $1.2 to 1.5 bn a year

Leader in decentralization efforts IUIDP model developed in late 80s - Bank association through Urban Sector Loan IUIDP rapidly mainstreamed with donor support 5 Bank projects ($100 million plus each) approved East Java Bali Sulawesi Irian Jaya Surabaya Semarang Surakarta Kalimantan THE URBAN SECTOR

EA in its infancy National EPB (Bapedal) only recently established Very few regional/provincial EPBs (Bapedalda) EA regulations barely developed Limited awareness at provincial/local levels EA Reports prepared for Bank project Prepared by consultant Sub-project specific Very limited ownership EA Implementation Only in select cases, e.g., some landfills EA training mostly too little, too late ENVIRONMENTAL ASSESSMENT IN THE MID 90s

Second generation IUIDP Cookie cutter to meeting specific needs Economic overview of Bali highlighted importance of agriculture and tourism Both came down to unique features of Bali - Small, fragile island - Natural beauty: beaches, terraced paddy fields, mountains, lakes, volcanoes -Rich cultural heritage, both built and living Overarching project objective: Sustainable development of Bali, in the context of its fragile environment and unique cultural features Specific project objective: Improve urban infrastructure services in a sustainable manner CONCEPTUALIZING BUIP

Approach to EA Combination of regional and sectoral EA called for. GOI regulations well-developed for EA but did not provide for sectoral EA. Regional EA not politically acceptable in this case. Adopted the term “umbrella” EA

BUIP Umbrella EA -- Dec Contents Policies and regulations Description of BUIP Natural and cultural environment of Bali, including opportunities and constraints Typical impacts of BUIP subprojects Generic mitigation measures

Screening procedure for subprojects Sample TORs for EA and EMP Guidelines for public participation Institutional capacity assessment Recommendations to minimize cumulative impacts and strengthen institutional capacity

Successes Provided screening procedures for overall EMP Provided basis for design of environmental management training First instance of public consultation on a project EA in Indonesia Engaged variety of stakeholders

Failures Did not really analyze cumulative impacts, especially in the context of other development plans and programs on Bali. Only partially identified and presented development opportunities and constraints.

What happened next? Prepared free-standing EMP including institutional arrangements (EOC) EMP has been actively implemented, with screening of subprojects, review of environmental documents and supervision by BAPEDALDA and EOC, inclusion of SOP in contracts. EMP used as model by Government for subsequent infrastructure projects

Carried out highly successful environmental management training through training of trainers, with sustained results. Implemented SOCEI -- Study of Cumulative Environmental Impacts Essentially built the environmental planning function into the project

SOCEI Outputs & Outcomes Active participation of stakeholder working groups on four self-selected priorities: tourism, small business, agriculture, water Considered alternative futures for Bali as scenarios Raised public and media awareness on env’t. Agreed on “Green Bali Action Plan” and formulated its financing mechanism…

… the environmental mgt. tax $2/day collected at tourist hotels Revenue shared so that non-tourism districts would also benefit Reinforced main conclusion of Action Plan to concentrate tourism in SE. All 9 districts agreed on mechanism Ultimately politically unpalatable for Governor

Another Phase: BSEP Bali Strategic Environmental Plan Used Green Bali Action Plan as starting point Financed input-output model for Bali Assessed land use planning and development processes and regulations Reviewed Bali development plans Seems to have a life of its own….?

SOCEI Carried out as a BUIP component Originally designed as panel of experts with facilitator and support staff Could only be implemented as conventional consultancy. Filled the gaps in the Umbrella EA