INO: Tangguh Liquefied Natural Gas Expansion Project

Transcription

1 Initial Poverty and Social Analysis Project Number: October 2016 INO: Tangguh Liquefied Natural Gas Expansion Project An initial poverty and social assessment (IPSA) is prepared in the early stage of the project cycle to assess the significance of social issues for a project. In accordance with ADB s public communications policy (PCP, 2005), the IPSA is disclosed upon completion. The final summary social assessment is included as an appendix to the project s report and recommendation of the President.

2 INITIAL POVERTY AND SOCIAL ANALYSIS Country: Indonesia Project Title: Tangguh Liquefied Natural Gas Expansion Project Lending/Financing Modality: Project Loan Department/ Division: Private Sector Operations Department Infrastructure Finance 2 I. POVERTY IMPACT AND SOCIAL DIMENSIONS A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy The most recent National Medium-Term Development Plan (RPJMN, ) similar to RPJMN, has poverty reduction as one of the key agendas. The emphasis is on inclusive and sustainable growth, increasing value added of natural resources with sustainable approach, increasing quality of the environment, disaster mitigation and tackling climate change. The Interim 2015 Country Partnership Strategy for Indonesia (I CPS) 1 pillar for inclusive growth encompasses facilitating energy, improving access to water supply and sanitation; supporting community driven basic infrastructure for poor communities, among others. Whereas the pillar for infrastructure development will support strengthening energy security; extending the reach, reliability, and efficiency of the national electricity grid; and fostering greater use of clean sources of primary energy. The Project supports the RPJMN and contributes poverty reduction, inclusive growth and achievement of social development goals by fulfilling the following commitments under the AMDAL (i) allocating 75% of gas produced to the domestic market; (ii) supporting the local governments of West Papua, Teluk Bintuni and Fakfak Regencies in fulfilling local electricity demand by allocating gas produced by the Project as clean source of fuel and supporting feasibility studies for gas powered generators to be constructed in West Papua, and (iii) supporting local livelihoods by selling excess power produced by the project to PLN at discounted rates. PLN has started to distribute to local communities 4MW of power from the project and will further expand this by providing another 4MW. Furthermore, through the Tangguh Sustainable Development Program (TSDP) (also known as the Resettlement and Indigenous Peoples Plan or RIPP), the Project will address binding constraints to reducing poverty in West Papua by providing access to productive employment opportunities, quality education and access to quality healthcare among other programs. B. Poverty Targeting General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2, etc.) The Tangguh LNG Expansion Project scope includes the construction of a new onshore LNG Train 3, 2 new offshore platforms, pipelines to connect the platforms to the onshore facilities, a new LNG-condensate jetty, and a new Bulk Offloading Facility (BOF). The project will address the key poverty and social issues through the TSDP/RIPP. C. Poverty and Social Analysis 1. Key issues and potential beneficiaries. In Teluk Bintuni (Bintuni Bay) 42% of the people rely on fishing, agriculture, hunting and gardening while 19% are in services sector, 11% are in trading and the other 28% are involved in other activities. Infrastructure facilities, particularly, public roads are still insuffient in terms of quality and quantity. The presence of education program of Tangguh LNG including two other institutions brought improvements in several aspects of education like increased student and teacher attendance rate. However, achieving the required teacherstudent and classroom-student ratio which ideally reflects effectiveness of teaching and current condition of education in the community remains to be a challenge. Public health programs led by Tangguh LNG Project made the following possible: reduced prevalence rate of malaria, decrease in mortality level due to diarrhea and reduction in infant mortality rate. Many constraints, however, still exist due mainly to cultural thought and traditions by local communities and quality of primary health care services. The thrust of the project sponsor is to work closely with the local government in achieving maximum results out of the development projects that it plans to implement in parallel with the expansion of the LNG project. LNG expansion will indirectly contribute to poverty reduction by delivering reliable power supply to industries and enterprises in the country as well as increased tax revenues which the national government can use to implement and sustain social programs directly benefiting the poor indigenous peoples in West Papua. 2. Impact channels and expected systemic changes. Expansion of Tangguh LNG will contribute to increased economic development through employment and business opportunities. However, some activities will also disturb fishery activity and sea transportation accessibility. Changes in local business growth, social and cultural changes 1 ADB Country Operations Business Plan: Indonesia, Manila.

3 2 associated with reduced access to natural resources and impact to migration are also anticipated. It is expected that poor and vulnerable Indigenous Peoples communities in the Tangguh social influence area (63 villages) will benefit from programs in the development plans prepared (TSDP/RIPP) that aims to enhance the quality of life of local communities which in turn will contribute to Tangguh LNG operation sustainability. 3. Focus of (and resources allocated in) the PPTA or due diligence. Due diligence, among others, will confirm disclosure of the TSDP/RIPP to the affected people and project beneficiaries and that revision of RIPP has incorporated or addressed the issues that they have raised during socialization activities. II. GENDER AND DEVELOPMENT 1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project or program? In Papua, women are traditionally described as strong and tough but their roles culturally are seen only as relevant in the domestic sphere and not recognized as leaders. They are expected to be responsible in managing domestic affairs and supports men in productive and public affairs. It is interesting to note, however, that women in some villages are in charge of sago making and fishing during full moon which contributes significantly in augmenting family income. Sebyar and Sumuri women also play vital role in community health and disease prevention. These strong gender biases are seen to impact on their access and control over resources and services, i.e., health, education, and income opportunities. Although the expansion will not adversely affect women in communities as construction activities and workers camps will be confined within the Tangguh s fenced property, Tangguh is aware of positive results in incorporating gender awareness in programs. Thus, Tangguh s social programs in the TSDP/RIPP are designed to benefit women in the Tangguh social influence area. 2. Does the proposed project or program have the potential to make a contribution to the promotion of gender equity and/or empowerment of women by providing women s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain.. Measures to promote gender equality and women s empowerment are embedded in each of the six programs under TSDP/RIPP. The Project will ensure participation of women in during consultations and partnership will also be established though livelihood programs as producers and cooperative members. Different programs and activities of the project will ensure the following: (a) membership of women in Community Relations Team to provide gender perspective and ensure women s access and involvement in program activities; (b) opportunities to female candidates in scholarship and training programs providing them better chances of employment after the training; and (c) engagement of women in community-based activities. 3. Could the proposed project have an adverse impact on women and/or girls or widen gender inequality? Yes No Please explain. The project will specifically target women borrowers and is not expected to have any adverse impact on women. 4. Indicate the intended gender mainstreaming category: GEN (gender equity) EGM (effective gender mainstreaming) SGE (some gender elements) NGE (no gender elements) III. PARTICIPATION AND EMPOWERMENT 1. Who are the main stakeholders of the project, including beneficiaries and negatively affected people? Identify how they will participate in the project design. The LNG Expansion Project will positively and negatively impact on the communities of Teluk Bintuni and Fakfak regencies. Consultation process undertaken included both formal and informal activities like studies, focus-group discussions, mini-workshops, public meetings, multi-stakeholder hearings, as well as deep dive sessions with government and expert stakeholders. Further consultations are currently being undertaken to inform the communities on the contents of supplementary studies and the TSDP/RIPP. 2. How can the project contribute (in a systemic way) to engaging and empowering stakeholders and beneficiaries, particularly, the poor, vulnerable and excluded groups? What issues in the project design require participation of the poor and excluded? TSDP describes participatory approaches and project activities that strengthen inclusiveness and empowerment of the poor and vulnerable. To be able to finalize the RIPP, further consultations are being conducted to ensure that communities are aware of the plan and that their issues and feedbacks are incorporated in the final TSDP/RIPP. 3. What are the key, active, and relevant civil society organizations in the project area? What is the level of civil society organization participation in the project design? Information generation and sharing N Consultation H Collaboration Partnership

4 3 4. Are there issues during project design for which participation of the poor and excluded is important? What are they and how shall they be addressed? Yes No Participation mechanisms are described in the TSDP/RIPP. IV. SOCIAL SAFEGUARDS A. Involuntary Resettlement Category A B C FI (treated as C) 1. Does the project have the potential to involve involuntary land acquisition resulting in physical and economic displacement? Yes No New facilities will be constructed on remaining unutilized forest land inside the Tangguh perimeter fence. No additional land acquisition or physical resettlement is planned. Construction of the WDA platform will require support vessel movements which may disturb fishing activities during the construction period (6months). No fishermen would be directly affected by the construction and operation of the WDA platform which is separated from traditional community fishing ground There are also no local fishing activity around the 500m perimeter of platform safety exclusion zone. Construction and use of the BOF activity during construction phase will likely affect the subsistence of the 17 foot-fishermen in Tanah Merah, rather than their livelihood. The increase in safety exclusion zone due to construction of the BOF will likely cause the reduction of foot-fishermen s access to their fishing ground and the related dredging activity is expected to disturb shrimp and fish stocks. 2. What action plan is required to address involuntary resettlement as part of the PPTA or due diligence process? Combined Resettlement and Indigenous Peoples Plan (RIPP) B. Indigenous Peoples Category A B C FI (treated as C) 1. Does the proposed project have the potential to directly or indirectly affect the dignity, human rights, livelihood systems, or culture of indigenous peoples? Yes No Customary or tribal people residing in the coastal areas of Bintuni Bay, include the original clans from the Sebyar, Irarutu, Simuri and Petuanan Arguni, Wertuwar and Sekar Pikpik ethnic groups. Sea transportation for workforce, equipment and materials seabed trenching, pipe installation and rock dumping may cause temporary fishery activity disturbance and sea transportation accessibility disturbance. Plant operations, including revenue allocation to the local government will induce economic growth, affect local development and attract more local people in the project area. This may result in increased in-migration, increased demand/pressure on public services (schools, water, etc) and may change social and cultural norms lifestyles. Presence of in-migrants may cause social tension and marginalize Indigenous Peoples. 2. Does it affect the territories or natural and cultural resources indigenous peoples own, use, occupy, or claim, as their ancestral domain? Yes No Construction of the BOF and the second LNG jetty may disturb the Kumapa stones and the sacred houses that are respected by Indigenous People from Tanah Merah and Saengga. 3. Will the project require broad community support of affected indigenous communities? Yes No The Project is expanding from an existing facility and will tap from the same subsurface gas fields covered by the Wiriagar, Berau and Muturi Production Sharing Contracts which were awarded in the early 1990s. ADB financed the construction of T1/T2, which process gas from the same concession area covered by the same PSC contracts. Tangguh operates in the same social influence area where several indigenous tribes are present and have been involved in the consultation process and benefitted for more than 10 years through social development programs implemented. The issue on adat compensation for gas is being addressed through a regulation on natural resource revenue allocation. Unlike T1/T2, the expansion will not physically displace Indigenous Peoples (IPs). The Project also does not involve commercial development of Indigenous Peoples knowledge. For these reasons, the project does not trigger the requirement to obtain consent through broad community support. However, considering that cumulative impacts of Tangguh operations, government policies and other companies activities may result in significant impacts to IPs, free prior and informed consent of IPs was an important consideration in the consultations processes used for TSDP design and implementation. 4. What action plan is required to address risks to indigenous peoples as part of the PPTA or due diligence process? Combined Resettlement and Indigenous Peoples Plan (RIPP) V. OTHER SOCIAL ISSUES AND RISKS 1. What other social issues and risks should be considered in the project design? Creating decent jobs and employment Adhering to core labor standards (H) Labor retrenchment Spread of communicable diseases, including HIV/AIDS (L) Increase in human trafficking Affordability Increase in unplanned migration Increase in vulnerability to natural disasters Creating political instability Creating internal social conflicts Others, please specify

5 4 2. How are these additional social issues and risks going to be addressed in the project design? Adherence to national labor laws and the core labor standards will be ensured through BP Tangguh s Workforce and Industrial Relations Management Strategy. VI. PPTA OR DUE DILIGENCE RESOURCE REQUIREMENT 1. Do the terms of reference for the PPTA (or other due diligence) contain key information needed to be gathered during PPTA or due diligence process to better analyze (i) poverty and social impact; (ii) gender impact, (iii) participation dimensions; (iv) social safeguards; and (v) other social risks. Are the relevant specialists identified? Yes No 2. What resources (e.g., consultants, survey budget, and workshop) are allocated for conducting poverty, social and/or gender analysis, and participation plan during the PPTA or due diligence? An E&S Consultant was engaged to undertake an environment and social compliance audit of the existing facilities and conduct an environmental and social assessment of the Tangguh Expansion Project. The ADB E&S Team also conducted due diligence for the proposed project.