Projects

Project Information

Badan Pengendalian Dampak Lingkungan (BAPEDAL) Regional Network Project

Country and Location

Denpasar, Jakarta, Pekanbaru and Ujung Pandang in Indonesia

Borrower

Republic of Indonesia

Date of Approval

27 June 1996

Objectives

The objectives of the Project are to: (i) establish institutional capacity at the regional level to set environmental standards, improve environmental awareness, and provide environmental management and support services; and (ii) strengthen BAPEDAL through human resource development at the regional and national levels. The Project consists of the following main components:

1. Establishing a network of four regional BAPEDAL offices at Denpasar, Jakarta, Pekanbaru and Ujung Pandang, including the necessary human and technical resources;
2. Developing human resources by providing technical, managerial, and administrative courses for selected BAPEDAL staff at the regional and national levels;
3. Setting regionally appropriate environmental quality standards and pollution limits for the different sources of pollution in each of the four regions; and
4. Establishing in the four regional offices the following supplementary systems and facilities: (a) environmental databases for systematically monitoring the environmental quality in the four regions; (b) environmental information centers for public education including demonstration facilities for promoting environmental awareness; and (c) an accreditation and certification system to give national recognition to industries and organizations with appropriate management structures that address the immediate and long-term impacts of their processes, products, and services on the environment.

Total Cost

Bank	US$45 million (58 per cent)
Land Bank of the Philippines	US$32 million (42 percent)

Loan Amount and Terms

The US$45 million loan is from the Bank's ordinary capital resources. The terms of the loan include an interest rate to be determined in accordance with the Bank's lending rate system for US dollar loans, a commitment charge of 0.75 per cent per annum and a repayment period of 20 years, including a grace period of five years.

Period of Utilization

Until 1 October 2001

Executing Agency

Environmental Impact Management Agency (BAPEDAL)

Implementation

BAPEDAL has established a Project Management Unit comprising a Steering Committee, a Technical Coordination Committee, a Project Management Office, and a Project Director's office. The Director for Program Development has been appointed as the Project Director with overall responsibility for overseeing and facilitating implementation and ensuring coordination of the Project with the other projects of BAPEDAL. At the regional level, the heads of the four regional offices will be responsible for coordination, implementation, and administration of Project activities within their respective regions.

Procurement

The procurement of goods and services financed by the Bank loan will be carried out in accordance with the Bank's Guidelines for Procurement. Supply contracts with an estimated value of US$500,000 or more will be procured on an international competitive bidding basis; those with an estimated value of less than US$500,000 but more than US$50,000 will be procured through international shopping procedures; and those with an estimated value of US$50,000 or less, as well as some software and proprietary equipment, will be procured through direct purchase. The civil works, which will be financed by the Government, will be carried out by local contractors selected by BAPEDAL through local competitive bidding using Government's standard procedures.

Consultant Services

About 252 person-months of domestic consulting services and 154 person-months of international consulting services will be required for implementation of the Project. The expertise required includes expert knowledge of international environmental standards; information systems; curriculum development and training; building design and project implementation. The consultants will be engaged by BAPEDAL in accordance with the Bank's Guidelines on the Use of Consultants and other arrangements satisfactory to the Bank.

Estimated Date of Completion

31 March 2001

Project Benefits

The benefits of the Project include: (i) enhanced environmental management capabilities at the regional and local level, resulting in better pollution control and more effective enforcement of the environmental laws and regulations; (ii) improved management by industries and organizations of immediate and long-term impacts of their products, services and processes on the environment'; (iii) improved monitoring of environmental data allowing better enforcement and quicker policy response to changes; and (iv) increased public awareness of environmental issues and heightened community involvement in sustaining the environment.

Technical Assistance

To complement the institutional strengthening of BAPEDAL under the Project, the Government has requested the Bank to provide advisory technical assistance to develop a master plan for establishing a network of local level environmental impact management agencies (BAPEDALDA). The main objectives of the technical assistance will be to assist the Government in: (i) preparing a master plan for establishing institutional arrangements at the local level to implement and enforce environmental laws and regulations; (ii) examining the possible options, including fees/fines and fiscal measures, for ensuring financial sustainability of these institutions and recommending the most appropriate measures; and (iii) providing guidance for formulating an externally-funded project for establishing local environmental impact management agencies in priority areas.

The Executing Agency for the technical assistance will be the Directorate General for Regional Development of the Ministry of Home Affairs. The total cost of the technical assistance is estimated at US$1.03 million equivalent, comprising a foreign exchange cost of US$636,000 and a local currency cost of US$394,000 equivalent. The Government has agreed to finance US$130,000 equivalent of the local currency costs, which include preparatory surveys, counterpart staff, office facilities, and supplies. The Government has requested the Bank to provide a grant of US$900,000 to finance the entire foreign exchange cost of US$636,000, plus US$264,000 equivalent of local currency costs comprising the cost of domestic consultants and travel, equipment, supplies, training and seminars.