The proposed MCDF grant will facilitate active collaboration between the government of Indonesia (GoI) and AIIB in undertaking high-quality project preparation, particularly related to environmental and social (ES) safeguards. The grant will enhance institutional capacity on ES at the Ministry of Public Works and Housing (MPWH), a key ministry overseeing bridge and road infrastructure development. In doing so, the grant will also help improve the performance and success of AIIB’s potential underlying investment (Batam Bintan Bridge project) as well as, potentially, future investments by AIIB and other IFIs in the transportation sector in Indonesia.
The activities to be financed by the grant will include additional work needed to bring the local Environmental Impact Assessment and land acquisition plan in compliance with IFI standards as expressed by AIIB’s Environmental and Social Framework (ESF) requirements. This will include the conduct of a biodiversity survey, cumulative impact assessment, and social impact assessment; preparing an Environmental and Social Management Plan (ESMP); and preparing a stakeholder engagement plan. Further, the proposed grant will engage a panel of local and international experts for consultations and review of the ES documents during project preparation. The panelists will include stakeholders from NGOs/CSOs and/or academia.