To strengthen the West Java Academic Health System through the development of RS UNPAD’s healthcare service delivery, medical education, and research capacity, along with the development of a center of excellence for tuberculosis.
The Project Investment will be carried out with the below Project Components:
Component A – Civil Works: A range of infrastructure investments will support the academic system development program of RS UNPAD. Key buildings under AIIB’s financing include an outpatient and medical education building, inpatient building, infectious disease and immunology research center specializing in Tuberculosis and an advanced therapy and diagnostics center of excellence. The structures form a part of the overall development plan, with other buildings to be developed at a later stage with other financing sources.
Component B – Procurement of equipment: The proposed upgrade of RS UNPAD includes advanced medical and research equipment to help transform it into a tertiary-level referral center with integrated clinical, research, and education functions. The package covers major clinical specialties, advanced diagnostics and imaging, laboratory and infectious disease testing, surgical and interventional systems, research platforms for Tuberculosis and vaccine development, and hospital systems for inpatient care and operations.
Component C – Human Capital Development: The government of Indonesia will finance the entire Component C, and it consists of multiple subcomponents. The service subcomponent strengthens academic and health services at the primary, referral, and specialized levels. It links teaching hospitals, primary care, laboratories, clinical trial centers, and partner hospitals to improve service quality and support innovation.
Component D – Project Implementation Support: AIIB financing will support the engagement of procurement and technical consultants, including construction supervision and management consultants, medical and laboratory equipment consultants, and specialists such as a civil engineering expert, medical service management expert, and financial auditing consultant. It will also finance Project management support, including relevant consultants to strengthen operational governance, helping ensure an effective transition from construction to operations.
Applicable Policy and Categorization. The Project is governed by AIIB’s Environmental and Social Policy (ESP), which includes the Environmental and Social Exclusion List (ESEL), Environmental and Social Standard (ESS) 1 on Environmental and Social Assessment and Management, and ESS 2 on Land Acquisition and Involuntary Resettlement is not expected to apply based on available information, as project activities are planned on university-owned land and no land acquisition or involuntary resettlement is currently anticipated. In addition, ESS 3 on Indigenous Peoples is not expected to apply as no Indigenous Peoples have been identified in the Project area. The Project is proposed as Category B, as the environmental and social (ES) risks and impacts are expected to be site-specific, temporary, mostly reversible, and not unprecedented, and can be managed through good engineering design, national permitting requirements, good international industry practice, and Project-specific ES instrument.
Environmental and Social Instruments. An Environmental and Social Impact Assessment (ESIA) proportionate to the risks will be prepared and include an Environmental and Social Management Plan (ESMP), Labor Management Plan, Gender Action Plan (GAP), and Stakeholder Engagement Plan (SEP). The ES due diligence (ESDD) will identify requirements for any supplementary documents and/or time-bound actions which may be required to address gaps with AIIB’s ESP requirements.
Environmental and Social Aspects. The key environmental risks include dust, noise and vibration, construction waste, hazardous medical and chemical waste, wastewater, biosafety, infection prevention and control, emergency preparedness, traffic disruption and emergency access, and potential asbestos-containing materials, in structures or building materials affected by demolition (to be confirmed by appraisal). Expanded medical, laboratory, oncology, radiotherapy, nuclear medicine and tuberculosis research activities will require appropriate management of healthcare waste, hazardous materials, infectious and laboratory waste, wastewater, and other specialized waste streams in line with Indonesian regulations and Good International Industry Practice. Potential adverse social risks are expected to be limited and manageable, including temporary construction disturbance, access restrictions, pedestrian and public safety risks, worker-community interactions, labor influx, and stakeholder concerns related to hospital and laboratory operations. No physical or economic displacement is currently anticipated; however, this will be confirmed during ESDD through review of the Project footprint, land ownership records, occupancy status of affected structures, and stakeholder consultation through the ES instrument.
Occupational Health and Safety (OHS), Labor and Employment Conditions. The Project will comply with Indonesia’s labor laws and AIIB’s ESP to manage labor and OHS risks during construction, equipment installation, commissioning and operations within an active hospital and university campus setting. Key labor and OHS risks include working at heights, falls, slips and trips, electrical and mechanical hazards, noise, dust, fire risks, exposure to hazardous materials and wastes, infection risks from working within an active hospital environment, and safety risks associated with medical, laboratory, mechanical and electrical equipment. Community health and safety risks may include noise, dust, traffic disruption, pedestrian safety, emergency access constraints, and potential exposure to communicable diseases affecting students, faculty, staff, patients, visitors and nearby communities. These risks will be managed through ESMP and contractors’ Construction ESMP. Mitigation measures include site-specific OHS plans, training and personal protective equipment (PPE), risk assessments and permits, access control, emergency response, worker welfare provisions, grievance mechanisms, and incident reporting.
Stakeholder Engagement, Consultation and Information Disclosure. Stakeholder engagement will be undertaken as part of the preparation of the ES documentation. The process will identify and engage relevant stakeholders, including Project beneficiaries, potentially affected persons, campus users, patients and prospective users of services, health workers, students, faculty, staff, contractors, local authorities and other interested parties. The SEP will assess stakeholder interests and concerns and set out an inclusive and effective engagement strategy for consultation during preparation and implementation. Draft ES instrument will be disclosed in English, with executive summaries in Indonesian language, as appropriate, on the Borrower’s and AIIB’s websites and through locally accessible channels in accordance with AIIB’s ESP.
Project Grievance Redress Mechanism and PPM. A Project-level GRM will be developed in accordance with AIIB’s ESP, building on existing complaint-handling arrangements at UNPAD and strengthened, as needed, to meet AIIB’s ESF and the Project’s specific requirements. The GRM will be established in a timely manner and will provide accessible channels for project stakeholders to raise concerns related to Project-related matters. The mechanism will include procedures for receiving, recording, resolving and reporting grievances, including confidential handling of sensitive complaints. A worker-specific GRM will also be established for construction workers. Information on established GRMs and AIIB’s Project-affected People’s Mechanism (PPM) will be disclosed to relevant stakeholders in an appropriate manner.
Monitoring and Reporting Arrangements. UNPAD and the PMU, supported by ES consultants, will monitor ESMP implementation, contractor performance, stakeholder engagement, grievances, incidents and corrective actions. AIIB will conduct periodic monitoring and implementation support, including construction works, traffic and access, waste and wastewater management, biosafety, infection prevention and control, emergency preparedness, and fire and life safety. More details will be determined during project preparation and ESDD.
Republic of Indonesia
Dian Lestari
Director of Loans and Grants, Ministry of Finance of Indonesia
Ministry of Higher Education, Science and Technology, Indonesia
Ade Faisal
Head of the Bureau of Planning and Cooperation, Ministry of Higher Education, Science and Technology of Indonesia
