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Indonesia: Trans-Sumatra Toll Road Project – Cinto Kenang to Sentjalang

SUMMARY

STATUS
Proposed
MEMBER
Indonesia
SECTOR
Transport
E&S CATEGORY
Category A
PROJECT NUMBER
000556

FINANCING

PROPOSED FUNDING AMOUNT
USD1,200 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
March 2, 2022

OBJECTIVE

To improve the efficiency, safety and resilience of the road connectivity in Sumatra, by building a segment of the Trans-Sumatra Toll Road (JTTS).

DESCRIPTION

The project consists of 3 components:

A. Civil Works. This component will finance the construction of a 136.9-km toll road section of JTTS between Cinto Kenang and Sentjalang in Sumatra's Jambi and Riau provinces.

B. Consulting Services to Support the Project Implementation. This component will support the consulting services to project management, construction supervision consultancy, and implementation monitoring.

C. Institutional Enhancement and Capacity Building. This component will finance implementation support training and capacity building on technical cross-cutting issues such as road safety and/or climate resilience for MPWH staff.

ENVIRONMENTAL AND SOCIAL INFORMATION

The AIIB’s Environmental and Social Policy (ESP), including Environmental and Social Standard 1 (ESS1) on Environmental and Social Assessment and Management, ESS2 on Involuntary Resettlement, ESS3 on Indigenous Peoples and the Environmental and Social Exclusion List (ESEL), will apply to this Project

In accordance with AIIB’s ESP, an Environmental and Social Impact Assessment (ESIA) including an Environmental and Social Management Plan (ESMP) for the entire Jambi-Rengat section will be prepared based on the domestic Environmental Impact Assessment (EIA) and a Land Acquisition and Resettlement Plan (LARP) for the Jambi-Rengat section will be prepared based on the domestic Land Acquisition Planning Documents (LAPDs). The lands to be acquired for the Jambi-Rengat section fall under the jurisdictions of the Jambi Province and the Riau Province.

The Project including identified associated facilities may have impacts on seven protected areas including two key Biodiversity Areas (KBAs) based on preliminary assessment. Therefore, a baseline data on local ecosystem and the biodiversity related to the proposed Project will be established prior to the commencement of the Project, and the impacts will be further assessed through a critical habitat assessment in line with ESS1 and international practices. Biodiversity surveys and assessment will be carried out as part of the ESIA and a Biodiversity Management Plan will also be prepared. Other environmental impacts of the Project will be temporary and localized, which will take place mostly during construction and maintenance periods. They include air pollution, noise, water contamination, landslide and soil erosion, change of surface water/groundwater and drainage, the implications on ecosystem, impacts of borrow areas and quarry, and the disposal of solid wastes, disturbance to communities, public utilities and traffic and risks to occupational health and safety. The impacts during the operation of the road mainly include traffic noise and vehicle emissions. The management, mitigation, and monitoring measures to address environmental risks and impacts will be included in the ESMP. The climate financing will also be estimated in line with the joint MDB methodology.

Based on the LAPDs prepared by the Provincial Governments of Riau Province and of Jambi Province, almost all of the land parcels in the Jambi – Rengat section are used as plantations while a very small proportion is used either as agricultural fields, settlements, or roads. A LARP that is compliant with ESP and ESS2 requirements will be prepared to address any impacts arising from land acquisition. The preliminary draft of the domestic EIA identifies Indigenous Peoples at the northern section of the Jambi-Rengat segment not financed by AIIB (Sentjalang-Rengat segment). Due diligence will further confirm presence of Indigenous Peoples and/or customary areas along the Jambi-Rengat footprint.

Public consultations have been carried out during the preparation of EIA and LAPDs. Additional consultations will be held during the preparation of the ESIA and the LARP and will ensure meaningful and inclusive participation, with views and concerns of the communities adequately addressed. A tailored Stakeholder Engagement Plan (SEP) for the Project will be prepared to guide the further consultations throughout the Project cycle. Based on stakeholder consultation feedback, the ESIA and other ES documentations will be finalized. The final ESIA and LARP will be available in the English and local language (Bahasa) and be disclosed both online (on the websites of the client and AIIB) and made available in hard copy in the project area.

A project-level Grievance Redress Mechanism (GRM) will be established in accordance with the requirements of AIIB’s ESP. Locally appropriate public consultation and disclosure process will be used to timely disseminate information about the GRM including both project-level GRM and the PPM. In addition, a separate GRM will also be established to address workplace complaints and concerns.

PROJECT TEAM LEADER

Weimin Zhou

Investment Operations Specialist

weimin.zhou@aiib.org

 

BORROWER

Luky Alfirman

Director General of Budget Financing and Risk Management,
Ministry of Finance of the Republic of Indonesia

luky.alfirman@kemenkeu.go.id

IMPLEMENTING ENTITY

Hedy Rahadian

Director General of Highways,
Ministry of Public Works and Housing of the Republic of Indonesia

dirjenbm@pu.go.id

PROJECT DOCUMENTS

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