1. business and industrial
2. business operations
3. management
4. project management

Environment, Social & Gender
Safeguards
February 3, 2015
Environmental and Social Management
System (ESMS)
POLICY
Government of Indonesia Rules and Regulation
Millennium Challenge COMPACT : GOI and US Govt.
MCC Environmental and Social guidelines and Gender Policy
IFC Performance Standards
TIER 1
MCA-Indonesia
TIER 2
GPP
Community-based
Health and Nutrition to
Reduce Stunting Project
TIER 3 - Proponents
EIA, Planning, ESMP,
Project Implementation, M&E,
Reporting and Project Closure.
Compact Level
Green
Prosperity
Project
Green Prosperity
Investment
Procurement
Modernization
Project
IFC Performance Standard (IFC-PS)
(Annex 27)
• PS 1: Assessment and Management of Environmental
and Social Risks and Impacts
• PS 2 : Labor and Working Conditions
• PS 3 : Resource Efficiency and Pollution Prevention
• PS 4 : Community Health, Safety, and Security
• PS 5 : Land Acquisition and Involuntary Resettlement
• PS 6 : Biodiversity Conservation and Sustainable
Management of Living Natural Resources
• PS 7 : Indigenous Peoples
• PS 8 : Cultural Heritage
3
Environmental and Social Performance
• ESMS and IFC Performance Standards (Annex 27) as
presented in ANDAL/UKL-UPL or SPPL documents, or
other relevant environmental and social studies must
meet IFC Performance Standards.
• Annex 11 - Environmental and Social Performance Data
Sheet
Social and Gender Integration
• Annex 10 – Social and Gender Inclusion Plan
• Annex 26 – Social and Gender Integration Guidance
• Basic criteria to be included in the Application
 Participation
 Access and Opportunity
 Benefit Sharing to Achieve Affordability
 Budget
• Expanded Social Gender and Landscape Study, to be
included in initial funded activities
Monitoring
Annex 12 – Monitoring & Evaluation Plan
Indicative data required
Outcome
Estimated diesel
generators and coal power
plants use displaced
Estimated diesel generator
and coal power use displaced
as a result of the Project
MWh
Output
Electricity connections
energized (if applicable)
Total number of connections
(household and business)
installed and energized by the
Project
Number
Output
Additional capacity of
renewable energy added
The amount of additional
capacity of renewable energy
that is installed (i.e.
constructed) or enabled (i.e.
operationalized) by the Project
Mega
watts
Economic Analysis
• Annex 17 – Data Sheet for Economic Analysis
• MCA-Indonesia requires that the Economic Rate of
Return on all proposed projects in this CfP is 10% or
greater.
• MCA-Indonesia will undertake the calculations based on
the proposed project logic and data.
• Applicants are not expected to do so.
…thank you…
Disclaimer
All figures, numbers and dates stated in our presentation are tentative, subject to change, based on our best efforts and subject to
the timely action by the pertinent local government.
Any requirement stated in our presentation may change from time to time as determined by MCA-Indonesia and/or MCC and is
subject to the applicable laws and regulations of the Republic of Indonesia.
Environmental and Social Management System
(Annex 27)
•
MCA-Indonesia ESMS Framework Policy Statement
– Maximize environmental and social benefits for the people of Indonesia
(including women and marginalized groups),
– Minimize the adverse impacts to the environment and society.
•
All MCA-Indonesia investments and operations shall comply with
environmental and social safeguards:
– Laws and regulations of the Government of Indonesia
– MCC Environmental Guidelines
– MCC Gender Policy
– IFC Performance Standards on Environmental and Social Sustainability.
•
Specific guidelines for GP include:
– MCA-Indonesia ESMS Framework
– MCA-Indonesia GP Project ESMS
– MCA-Indonesia SGIP and the GP SGIP
– Others guidelines: SEP & Public Consultation and Disclosure Policy,
GMP/GRM, Landscape/Lifescape-based Methodology, etc.
9
GP Project
ESMS Screening
Flow and
Instruments for
GP Commercial
RE Projects
Screening Flow
ESMS Instruments/tools
Proposed Project
Screening and
Scoping
• Screen for ESMS instruments/tools
(EIAs/ESMP new/upgrading, LARAP,
IPP, etc.) use screening checklist/ESDS
• Boundaries and Scope for
environmental & social impacts
Prepare
ESMP docs
• Prepare ESMP (AMDAL or UKL/UPL or
SPPL) report
• Consultation and disclosure (PCDP)
ESMP Appraisal
and
Environmental
Permit
• ESMP process: Resourcing &Budgeting
• Environmental permit process
• MCA Indonesia approval process
Project
Implementatio
n
•
•
•
•
ESMP implementation
Monitoring
Supervision/Oversight
Evaluation & Review
Social and Gender Gap in RE
Projects
• Lack of women’s and vulnarable
group access, participation, and
benefit from te projects
• Challanges and impact of RE
infrastructure on employment,
workloads, and the division of
labor
• Unaffordability of the poor,
female headed houshold, and
vulnerable group
• Short and long term risks for
women and young people
Social and Gender Integration
(Annex 26)
•
•
•
•
Participation
Access and Opportunity
Benefit Sharing to Achieve Affordability
Suggestions on merit-worthy local
community development agencies
• Suggestions on indicators that could be
used in Applications to promote social
and gender inclusiveness: Participation,
Access and Opportunities, Benefit Sharing,
User Knowledge, Decision Making, Capacity
Building, Trafficking in Person (TIP), etc
“Landscape/Lifescape-based Analysis
(L/L)”
Project planning
process,
investment,
Infrastructure and
services
Project Biophysical,
Human and Social
Environment
“Physic”: Project EIA and conventional
safeguard obligations only, still risking
elite capture, social exclusion and
jealousy, insufficient sources of natural
capital and spill-over negative
externalities, reducing livelihood
potential and increasing poverty
L/L: Project sustained by the surrounding
natural, human and societal resources,
inclusive of the poor, women and other
marginalized groups; widely-increased
livelihood/ income opportunities, poverty
reduction and growth; effectively safeguarded
against spill-over negative externalities.
THE KEY ROLE OF ECON
To determine if the eligible
proposals meet the economic
rate of return criterion (i.e., ERR
≥ 10%).
ERR=Incremental Benefits
Household
Income
(IDR)
What Concerns Economics?
• Efficient Allocation of Resources
• Increase Output, Minimize Cost
• Incremental Benefits
• Economic Values
120
With GP Project
ERR
100
80
Without GP Project
Tren income
60
40
20
2009
2015
2017
Intervention phase
Data Base
Project Duration
2035
year
With GP Project
• Investment increase household
income broadly (include poor people)
• Reduce emission
• Protect natural asset s
Without GP Project
• Investment increase household
income partially
• Increase emission
• Reduce natural assets
GENERAL FUNDING PROCESS & ROLE OF
ECON TEAM
Call for Proposals
1
(CfP)
Annex 17
2
Eligibility of Proposals
Determined by TAP
3
- Econ Team Begin the
construction of Preliminary
economic model
- TAP identify sensitive
assumption and data, and
possible to discuss the
preliminary model
- Run Economic Analysis
- Submission of “the Proposal
Econ Team Review”
Funding Decision
Proposal Stage for Window 3.b only
M&E: Role and Function
the basic questions of aid effectiveness
• Do the expected results of this program justify the
allocation of scarce aid dollars?
• Has program implementation met predetermined
benchmarks for progress?
• Has the investment achieved its goals?
• What can we learn from the experience to inform
future programs and international best practice?
M&E provides information necessary to answer these
questions
M&E: Cycle
M&E: Reference and Guideline
•
•
•
•
•
•
•
•
•
•
Economic and Beneficiary Analysis
Common Indicators
M&E Plan
Modifications to Compact Programs
Quarterly MCA Disbursement Request and Reporting
Package (QDRP), including ITT
Procurement Guidelines
Activity Review Guidance
Guidelines for the Program Closure
ESMS Guideline
Gender Integration Guidelines
M&E: Logframe and Indicators
Process
Outcome and Output
•
•
•
•
•
•
•
Proposals that receive project
preparation support (#)
Individual loan or grant finance facility
agreements approved by the GP Finance
Facility (#)
GP Finance Facility agreements targeting
women and vulnerable groups (#)
Number of proposals submitted to the GP
Investment Committee that promote
economically productive activity for
women or other vulnerable groups (#)
Mechanism established to continue
execution and oversight of financial
agreements approved by the GP Finance
Facility (date)
Financial service provider partnerships
established (date)
•
•
•
•
•
•
•
Project funds disbursed by the TA and
Oversight Activity. (%)-Outcome
Additional capacity of renewable
energy installed (MW)-Outcome
GP-funded renewable energy systems
installed (#)-Outcome
Additional capacity of renewable
energy planned (MW)-Outcome
Power purchase or other power
production agreements (#)-Outcome
Project financing approved by the GP
Finance Facility (USD)-Output
Value of Projects Supported by the GP
Finance Facility Amount of funds
leveraged (USD)-Output
Project financing disbursed by the GP
Finance Facility (%)-Output