INO: Rural Infrastructure Support to the PNPM Mandiri Project II

Resettlement Planning Document

Resettlement Framework Document Stage: Final

Project Number: 38385-01

July 2009


A. Project Background and Description

1. Rural Infrastructure Support for PNPM Mandiri Project II (the Project) will support the Government’s ongoing flagship poverty reduction program—the National Program for Community Empowerment (PNPM Mandiri). The objective of this large program is poverty reduction by promoting community participation in development planning and management and delivery of basic services, including infrastructure. The PNPM Mandiri design has been formulated with assistance of the Decentralization Support Facility established by the major donors, and incorporates lessons from all recent communitydriven development (CDD) projects and programs in the country. The design provides comprehensive community facilitation in planning and implementation, utilizes simple and transparent funds flow mechanisms, and puts emphasis on operation and maintenance (O&M) of completed works.

2. PNPM Mandiri will deliver the infrastructure critically needed in the country, through directly engaging communities, thus avoiding risk of insufficient capacity al local government level to deliver public services. It will, however, give special attention to building capacities of communities and local governments to ensure the sustainability of investments. PNPM Mandiri is expected to be implemented at least until 2015, the timing target for the achievement of millennium development goals (MDGs). The program has two tiers: core program (PNPM-Inti) and support program (PNPM Penguatan). The core program provides support for the community empowerment, establishes and strengthens community-based implementation organizations (CIOs) or Lembaga Keswadayaan Masyarakat (LKM) and builds communities’ capacity to identify their needs and prepare village medium-term poverty reduction plans or PJM Pronangkis, and implement project activities through provision of initial grants. The support program delivers specific services through sectoral programs (e.g., agriculture, health, education, microfinance, etc.) utilizing the established CIO structures. The Project will support the implementation of the core PNPM Mandiri.

3. PNPM Mandiri adopts a highly successful CDD approach, distinguishing feature of which is community control of resources, backed by direct channeling of funds to community groups or members. In CDD programs, communities are active participants who prioritize their development needs and compete for resources by preparing proposals. CDD, when properly implemented, is more developmentally effective than other approaches. Transparency in decision making and procurement, and the threat of audits have demonstrably reduced corruption and leakage. The bottom-up planning process of CDD presents more opportunities for women and the poor to participate effectively in community and local governance processes. Evidence also indicates that CDD is likely to offer better performance in cost recovery and the O&M of the selected infrastructure and services due to a strong sense of ownership of the community members.

4. By adopting the design, funding modality, and implementation structure of the PNPM Mandiri, the Project will be fully consistent with the Government’s own development program and strategies. This will ensure strong ownership and greatly improve the prospects of achieving the common goals of improved service delivery, MDGs targets, and poverty reduction. The design of rural infrastructure improvement under the Project will be based on detailed guidelines prepared for the PNPM Mandiri.

Also, rather than creating parallel structures, the implementation arrangements established for the PNPM Mandiri will be used under the Project. The PNPM Mandiri Oversight Body will ensure harmonization of all donor-financed parts of the program.

5. The anticipated impact of the Project is improved socioeconomic conditions of the rural communities in the project area, which is in line with the overall objective of the PNPM Mandiri. The Project’s expected outcome is improved access of the poor and near poor in rural areas in the participating provinces to basic rural infrastructure. The Project incorporates lessons from very successful implementation of the ongoing Rural Infrastructure Support for PNPM Mandiri Project (RIS PNPM Project).

6. The Project will implement a geographic slice of PNPM Mandiri and cover about 2,000 rural less developed villages in 215 kecamatans in four provinces in Western Indonesia (Jambi, Lampung, Riau, and South Sumatra provinces).

7. The Project will follow the existing PNPM Mandiri design and improve the RIS PNPM Mandiri Project design, providing more support for community empowerment. The Project comprises of three outputs:
  1. Output 1: Strengthened Capacity for Community Planning and Development. This output seeks to empower communities and strengthen their capacity to prioritize, design, implement, and monitor community interventions. The output will provide assistance in conducting community mobilization and facilitation at the village level, including poverty mapping, identification of problems and needs, evaluation of community implementation capacity, and development of planning mechanisms and decision-making processes; providing capacity building to community implementing organizations (CIOs); helping communities formulate village plans and related annual investment plans for funding by block grants; providing technical guidance during the implementation of activities identified in the village plans; and helping communities formulate and implement O&M plans to ensure sustainability of completed facilities.
  2. Output 2: Improved Village Services and Infrastructure through Community Development Grants. This output will provide block grants to villages to support investments and meet their local needs as identified in their village plans and annual investment plans. Consistent with the PNPM Mandiri guidelines, investment opportunities for communities will be open except for a short negative list of activities prohibited by the Government of Indonesia (GOI) or Asian Development Bank (ADB) policies. Experience from PNPM-Mandiri shows that the most common community investments include feeder roads, water supply, sanitation, schools, health centers, community centers and electricity. The design and implementation of communityselected investments will be based on the detailed guidelines prepared for the PNPM Mandiri Program. As in the ongoing RIS-PNPM project, the block grants will be transferred directly to community bank accounts specifically opened for the project and managed by the CIOs.
  3. Output 3: Improved Capacity for Project Implementation and Monitoring and Evaluation. This output supports project management and implementation support at national, provincial and district levels, including monitoring and evaluation. Technical, management and capacity development support will be provided to project coordination and monitoring unit (PCMU) and project implementation units (PIUs) throughout the implementation period in areas such as project planning, management and coordination; preparation of feasibility studies and procurement packages; design and construction supervision; contract management; financial management and accounting; and institutional and human resources development. Monitoring and evaluation support will include the design and implementation of a high quality impact evaluation, possibly implemented in collaboration with the World Bank-financed PNPM in Rural Areas.

8. Due to the CDD nature of the process, whereby the project activities will directly benefit communities and involve community decision-making and management, safeguards will be built into the community decision-making process to deal with issues as they arise. The Project will require limited land acquisition for these very small community facilities and will not involve any resettlement of people, relocation of houses, or significant impact upon productive land or other productive assets.1 Based on the existing PNPM subproject activities the land required for the subproject activities has usually been less than 500m2 for each subproject, affecting less than 5 households each. The minimal land acquisition will be mainly through voluntary contribution by project beneficiaries. This land acquisition and resettlement framework (LARF) will be embedded in the Project’s operational manuals.

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