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1 Date ISDS PreparedNpdated: 08/06/07 I. BASIC INFORMATION INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE A. Basic Project Data I Country: Indonesia I Project ID: PI04022 Project Name: Makassar Landfill Methane Collection and Flaring Project Task Team Leader: James Orehmie Monday Estimated Appraisal Date: November Estimated Board Date: NIA 19th I Managing Unit: EASRE 1 Lending Instrument: Carbon Finance Sector: Environment Theme: Climate Change Mitigation, Municipal Solid Waste Management IBRD Amount (US$m.): IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: BORROWER Financing Gap B. Project Objectives [from section 2 of PCN] Report No.: The project development objective is to reduce methane emissions from solid waste disposed in the City of Makassar's landfill, Tempat Pembuangan Sampah Akhir (TPA) Tamangapa, through a carbon finance transaction. The key indicator for this objective will be the annual delivery of ERs. Another objective is to generate an income stream from the ERs that can be used to finance improvements in overall solid waste management, including improved collection services. C. Project Description [from section 3 of PCN] This CDM project consists of two distinct project activities: Component A: the construction and operation of landfill gas collection and flaring equipment that will result in ERs; and Component B: a carbon finance transaction that will facilitate the purchase of the ERs. Component A: The project will support the development and implementation of a landfill gas collection and flaring facility at TPA Tamangapa landfill. The construction of the landfill gas etraction and 41066
2 flaring facility will include the following components: (i) a collection system consisting of horizontal and vertical wells and collection pipes that will be installed in the area containing waste and epanded over time as additional areas are filled; (ii) landfill gas pumping equipment including a pipeline and blowers; (iii) landfill gas treatment and flare system which will remove moisture and combust the gas; and (iv) a monitoring and control system. Since 1993 it is estimated that approimately 1 million tonnes of organic waste has been deposited in the landfill. Based upon the forecast population growth and improvements in collection services in the City of Makassar it is epected that an additional 2 million tonnes of organic waste will be collected and disposed in the landfill during the 10-year period 2007 to Component B The World Bank-managed NCDMF will finance the purchase of ER credits resulting from the flaring of the gas. The purchase will be a performance-based contract under which payments are triggered by successful verification of the reduction of methane emissions by an independent, accredited international entity (Designated Operational Entity under the rules of the Kyoto Protocol). The quantity of ERs to be contracted, the length of time over which the purchase will be made, and the price paid will be agreed between the World Bank and the project sponsor. D. Project location (if known) The project site will be located approimately 15km from the city centre of Makassar. This landfill was established in 1993 and is epected to continue to provide the only municipal solid waste disposal location for the city until at least The City of Makassar is located on the Indonesian island of Sulawesi and like many other cities in Indonesia, suffers from an inability to cope with waste generation and disposal. Municipal solid waste generation is estimated at around 880 tonnesfday (0.70 kglca ita/day or 3, tonne/m3)l of which only 344 tonnes/day2 or 39% (1,500 m P /day) is collected and disposed in the landfill. This low level of collection service has major detrimental effects on the environment and health of the city. E. Borrower's Institutional Capacity for Safeguard Policies [from PCN] The City of Makassar plans to engage an eternal investor to share in the investment and risk of the landfill gas flaring project, as well as the ERs. The eternal investor will take responsibility for the financial investment, as well as the technical management and implementation of the flaring project either with its own resources or through a subcontractor. The City of Makassar will continue to own and operate the landfill. The eact details of the contract including distribution of the ER revenues that result from the flaring project will be addressed after selection of the eternal investor. The task team will eamine the eisting technical capacity and ' JICA (1996) Weighbridge Data, Dinas Keindahan, Kota Makassar
3 gapslconstraints of the eternal investor and, based on the eamination, review and advise on capacity building and training plans for the operation of the landfill gas capture system. F. Environmental and Social Safeguards Specialists Hiroshi Ono - Senior Environmental Engineer (EASRE) Sulistiowati Nainggolan - Social Development Specialist (EASIS) 11. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OPIBP 4.01) X The project will have significant local positive environmental outcomes through the implementation of an improved management of the landfill, which is a pre-requisite for the generation of adequate levels of methane. Because increased revenue will be generated proportionally to the amount of methane captured and flared, this will serve as a strong economic incentive fortimproved management of the landfill. However, this policy should be triggered because the construction and operation of the landfill gas etraction and flaring facility would cause some environmental impacts such as air pollution and noise. In addition, environmental concerns originated from the landfill site rembin, such as management of the leachate and other drainage issues affecting land, ground and sqrface water contamination, and public health and safety issues. The project boundary for safeguards compliance involves the landfill gas etraction and flaring facility such as (i) a collection system consisting of horizontal and vertical wells and collection pipes; (ii) landfill gas pumping equipment including a pipeline and blowers; (iii) landfill gas treatment and flare system; and (iv) a monitoring and control system. Notwithstanding, the task team plans to develop an environmental due diligence assessment report addressing the environmental impacts not only of the landfill gas etraction and flaring facility but also the eisting landfill itself. The TOR for the environment due diligence assessment work have been prepared and discussed with the project sponsor and the consulting firm performing the assignment. The task team received the first draft report on August 3,2007, and found that there were significant gaps between the agreed TOR and the contents of the draft. With the guidance of the Safeguards Meeting, the team will address the deficiencies of the draft, for instance, description of environmental risks and mitigation measures for the eisting landfill, and EMP for the landfill gas etraction and flaring facility, before appraisal. Natural Habitats (OP/BP 4.04) There are no protected areas, known natural habitats, or established or proposed critical natural habitats as defined under the policy in the project area. Forests (OP/BP 4.36) The project will not impact the health and quality of forests. Pest Management (OP 4.09) X The project will neither procure pesticides nor will result in an increased use of pesticides.
4 Safeguard Policies Triggered Cultural Property (OPN 11.03) Yes No TBD There are no physical cultural resources in the project area. Indigenous Peoples (OP/BP 4.10) The community near the landfill consists of two groups, namely, the employees working for the landfill operation, and scavengers. The estimated population of the scavengers is about 300. The majority of the scavengers (95%) are Makassar ethnic, and the rest are other ethnic groups such as Bugis and Java. The ongoing social due diligence practice will confirm before appraisal whether IP's as defined by the policy were or are present in the project area. Involuntary Resettlement (OP/BP 4.12) I I I The city confirmed that epansion of the landfill site is not required for the development of this project. The current land size available to the city and currently being used is adequate for the life of this project. Therefore, the project boundary is the current landfill site. The city however, will continue to acquire any surrounding land as it becomes available and as its owners are identified and confirmed, so as to meet the long term waste management planning needs of the city. This would be confirmed as part of the Bank's due diligence process. Safety of Dams (OPLBP 4.37) The project will not finance construction of any dams nor does it depend on the performance of an eisting dam. Projects on International Waterways (OPLBP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: [ ] A [ ] B [XI C [ ] F'I [ ] TBD (to be determined) 111. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: NIA B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: mid-october 2007, C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing3 should be specified in the PAD-stage ISDS. The environmental and social due diligence report is planned to be completed by mid- October, Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.
5 IV. APPROVALS Approved by: Regional Safeguards Coordinator: Comments: Sector Manager: Comments: Rahul Raturi
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