TANGGUH LNG INTEGRATED SOCIAL PROGRAM (ISP)

Transcription

1 TANGGUH LNG INTEGRATED SOCIAL PROGRAM (ISP) Achieving Sustainable & Responsible Operation

2 dicetak di atas kertas daur ulang

3 Contents List of Figures...7 List of Tables...9 Acronyms and Indonesian Terms...11 Executive Summary...15 I Introduction...17 II External & Internal Context...25 Relevant External Standards & Best Practices...25 Project Context...25 Indigenous People...30 Area Setting...32 Progress & Achievement...33 Promotion of Development based on Community Assets...37 III Overall Goal...39 IV Components of Strategy...41 Key Assumptions...41 Influence of Local Issues on ISP-2 Strategy...43 Strategic Approaches...44 Key Characteristics...48 Basic Strategy...48 Strategy Architecture...51 Overview of Strategic Programs...53 V Strategy Implementation...65 Implementation Framework...65 Monitoring & Evaluation...69 Key Competencies and Organization...72 Budget Composition...75 Annexes

4 List of Figures 1 Project Location Tangguh Gas Reservoir LNG Plant and its Supporting Facilities Livelihood of RAVs in Central Government Transfer to Sub-National Governments Community Action Plan (CAP) Framework Strategy Architecture of ISP Chain of Results for Programs Process of Implementation Organization Structure Budget Composition for Budget Composition in

5 List of Tables 1 Programs Objective Raised Issues in DAVs Summary of Consultation Process Significant Impacts of the Operational Phase Issues and Mitigation of Indigenous People Human Development Index (HDI) of West Papua Province Villages and Districts Where ISP is Implemented The Growth of Households Income by Villages Type of Development Intervention ISP Implementation Framework Monitoring and Evaluation of ISP Competencies for ISP Operation Activities and Their Impact as Stated in AMDAL Description and Key Performance Indicator for Governance Program Description and Key Performance Indicator for Communication & External Affairs Program Description and Key Performance Indicator for Community Health Program Description and Key Performance Indicator for Education & Training Program Description and Key Performance Indicator for Livelihood Program Annual Plan Form Annual Activities Budget Monitoring Form Governance Program in C&EA Program in Livelihood Program in Health Program in Education & Training Program in

6 Acronyms ABCD Asset Based Community Development ADB Asian Development Bank ADK Alokasi Dana Kampung, Village Fund Allocation AMDAL Analisa Mengenai Dampak Lingkungan, Social and Environmental Impact Analysis CAP Community Action Planning CBO Community Based Organizations CEPPS Consultation, Empowerment, Partnership, Participation, and Sustainability CLTS Community Led Total Sanitation CSO Civil Society Organization CTPS Cuci Tangan Pakai Sabun, soap hand washing DAK Dana Alokasi Khusus, Special Allocation Fund DAU Dana Alokasi Umum, General Allocation Fund DAV Directly Affected Villages DBH Dana Bagi Hasil, Revenue Sharing Fund DDUB Dana Daerah untuk Urusan Bersama, local fund for public affairs DGS Diversified Growth Strategy EMIS Education Management Information System GDP Group Defined Practices GRP Group Recommended Practices HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome ICBS Integrated Community Based Security IPDP Indigenous People Development Plan ISP Integrated Social Program LARAP Land Acquisition and Resettlement Action Plan LNG Liquefied Natural Gas MDG Millennium Development Goals Musrenbang Musyawarah Perencanaan Pembangunan, Development Planning Meeting NGO Non Governmental Organizations PEG Poverty, Environment, and Gender PEME Plan, Execute, Monitor, Evaluate PIC Person in Charge PNPM Program Nasional Pemberdayaan Masyarakat, National Program for Community Empowerment Posbumil Pos Pelayanan Ibu Hamil, pregnant women service post Posyandu Pos Pelayanan Terpadu, children under five integrated service post Puskesmas Pusat Kesehatan Masyarakat, community health centre PRA Participatory Rural Appraisal RAV Resettlement Affected Villages Respek Rencana Strategis Pengembangan Kampung, Village Development Strategic Plan SOP Standard Operating Procedure 10 11

7 WP&B YPTB Working Program & Budget Yayasan Pengembangan Teluk Bintuni, Bintuni Bay Development Foundation 12

8 Executive Summary 1. As part of the Social and Environmental Impact Analysis (AMDAL) commitment, Tangguh LNG will continue its operation support program in the form of community investment for the next five years, Community Investment Program (CIP) is also recognized as Indigenous People Development Plan (IPDP) and more widely known as Integrated Social Program (ISP). The next five year CIP or the second period of ISP (ISP-2) shares several similar features with the first ISP (ISP-1) such as: using AMDAL as a reference document, emphasis on local participation, ensuring the benefits for local communities in which indigenous people constitute more than 70% of the local community. However, there are some differences: ISP-2 document is intended as a Guide for ISP implementation. ISP-2 has general and shared overall goals across the programs. ISP-2 programs will be streamlined, focussed, and regrouped into five main programs. ISP-2 is developed to mitigate the risks of the Tangguh LNG operational phase. 2. Bintuni Bay Regency in West Papua Province in which Tangguh LNG operates has experienced several changes. Local government budgets increased significantly, villages and district divisions were implemented, and many investments and economic activities were conducted and facilitated by local government. Nevertheless, Tangguh LNG still contributes to local development especially through its local workforce and social programs. The beneficiaries of the social programs were the local communities especially the indigenous people and vulnerable groups namely women and children. 3 The approach for conducting the social program of ISP-2 consists of: Development by the community encouraging local ownership and initiating development, Capacity driven local governance that will strengthen the capacity of local actors to enhance development effectiveness, Selected area development that will develop certain areas as best practice and can be replicated to other areas, Key sectoral development that will focus on selected sectors to create wide multiplier effects thereby increasing the impact, and Poverty-environment-gender mainstreaming that will ensure all the programs contribute to the basic strategic issue. 4. The overall goal of ISP-2 is to support local effort to enhance the quality of life of local communities through participative and accountable local development practices and to contribute to Tangguh LNG operational sustainability. The overall goal is formulated by acknowledging the role of Tangguh LNG as one among many local development stakeholders and its works will be influenced by the participation and cooperation of other parties. The focus 15

9 area of ISP-2 is not only limited to Bintuni Bay Regency, but includes Fakfak Regency in West Papua Province as well. 5. The ISP-2 document is developed as a Guide that groups the programs into governance, communication & external affairs, community health, education and Monitoring is intended to provide feedback to improve the effectiveness of ISP-2 activities and will be conducted monthly and quarterly. Evaluation will consist of an annual evaluation, a mid-term evaluation in 2013 and a final evaluation in Annual evaluation will focus on performance of each program. Mid-term Table 1: Programs Objective Programs Objective Formulation Governance Communication & External Affairs Community Health Education & Training Livelihood Contribution to the improvement of governance of government and civil society in accordance with transparency, accountability, and participation principles. Promotion of mutual respect and constructive relationship between Tangguh LNG and its local stakeholders in Papua. Supporting local government and local community to improve health quality and accessibility of health services. Supporting local government and local community efforts to achieve an educated and skilled local population. Improving capacity of households in local community to create diversified and sustainable income sources, and empowerment of indigenous Papuan contractors to be competitive. training, and livelihood. The document will be evaluated further annually and will be based on community participation. The objective is elaborated in programs objective, outcomes, and key outputs. The objective for each program is listed in the table The implementation of ISP is based on the framework called PEME, which consists of four components, namely Planning, Executing, Monitoring, and Evaluating as a learning cycle. Participation of local community in the framework is necessary and expected. 7. Internal and external parties will conduct monitoring and evaluation of ISP and by using a results-based approach. evaluation gives the opportunity to review and revise the overall social program based on political, social, and economical contexts. Final evaluation will measure the performance and impact of overall ISP implementation. 8. To ensure the optimum benefit of ISP and also to ensure the effectiveness of management support in dynamic context, ISP-2 puts emphasis more on the importance of acquisition of several key competencies. These competencies can be grouped into program related competencies and cross-cutting competencies. The competencies will guide the organization and personnel development of the ISP-2 implementation team. I. Introduction 9. The Tangguh LNG Project has already completed the construction phase and export activities have already started. The changing of the phases in Tangguh s lifecycle is also marked in LNG s social program. The first of Integrated Social Programs (ISP) will be continued and developed into the ISP-2, which contains several changes in the context, approaches, and program design. 10. The operational phase of Tangguh LNG Project has several characteristics, such as Significant sea traffic in Bintuni Bay A smaller workforce is needed at the site because of the completion of many construction activities Although export activities are starting, the distribution of revenue to local government will not be available for the next couple of years 11. More villages and districts have been developed in the last five years. More public services have been provided by local government, investment activities improved, and economic development has accelerated, especially agriculture and trading accelerated. While migration is gradually growing in the district, indigenous people still constitute more than 70% of local people in directly affected areas (DAVs) of Tangguh LNG. Indigenous people are also still the main beneficiaries of ISP. 12. Five years experience in implementing ISP resulted in the Tangguh LNG Project continuing its policy on integrating the Indigenous People Development Framework (IPDF) into ISP based on recognition of the following: While the majority of the population of the project-affected area comprises indigenous people, there is a close integration of indigenous and nonindigenous communities, households and individuals. Both indigenous and non-indigenous households and communities experience poverty, environmental, and socio-economic challenges. It is essential that an inclusive, integrated, and effective social investment framework for the area is implemented without losing sight of the condition of indigenous people and the social tension between local communities

10 13. Land Acquisition and Resettlement Action Plan (LARAP) to address involuntary resettlement came to final stage in which the planned activities already delivered and hand over of public facilities especially water and electricity facility to local cooperative take place. The commitment of Tangguh LNG to Resettlement Affected Villages (RAVs) as stated in AMDAL already completed and will be continued together with Directly Affected Villages (DAVs) in the next Integrated Social Program (ISP). 14. In the last five years, , the Tangguh LNG Project has already conducted several social programs as its commitment to implement the Environmental and Social Impact Analysis (AMDAL). In addition to meeting AMDAL requirements, Tangguh LNG Project has also committed itself to follow international guidelines and best practices on indigenous people and involuntary settlement. All the commitment took the form of the ISP that consisted of 14 programs, namely: 1. Governance and revenue management 2. Civil society strengthening 3. Bird s Head Business Empowerment 4. Management of workforce recruitment and industrial affairs 5. Mitigation of in-migration and adverse induced impacts 6. Government and civil society in Bintuni Bay Regency 7. Integrated Community-based Security (ICBS) 8. Health 9. Basic education 10. Vocational training 11. Women s empowerment 12. Microfinance and microenterprise development 13. Community Development Community Action Plans (CAP) 14. Land acquisition and resettlement action plan (LARAP) 15. ISP-1 implementation was marked by several achievements that are summarized in several study reports. 1 These stated: significant improvement of health and education status of local people; many improvement of public infrastructure in the villages; stronger roles of women in families and communities; better functioning and managed local government; and development of trust among key stakeholders. The achievement of ISP-1 also contributed significantly to the completion of the Tangguh LNG Project construction and initial export activities. 16. For the next five years, , Tangguh LNG recognizes different contexts, expectations and goal for ISP-2. New regulations at national level relating to social welfare, public services, and social and environmental responsibility have already been legalized and will soon be enacted; bigger local budget allocation and spending are creating opportunities and challenges for local development. 17. On the other hand, the ISP-1 implementation experience showed the importance of flexibility, innovation, and adaptation to ensure the effectiveness of the program and achievement of desired outcome and key output. Therefore, the ISP-2 document has several key figures / features: ISP-2 is developed as a guiding document for ISP implementation. The document contains corridors for program implementation while at the same time providing space for participation and adaptation. ISP-2 has general and shared overall goals across the programs. The overall goals will ensure the inter-linkages and synergy between programs. ISP-2 programs will be streamlined, focussed, and regrouped into five 1 Census of Population and Social Economy Condition in Bintuni Bay Area (UGM, 2009), Report of UGM and IPGI Village Govern ance (2010)

11 main programs namely governance, communication and external affairs, public health, education and training, and livelihood. ISP-2 is developed to mitigate the risks of the Tangguh LNG operational phase and anticipates further business plans that have different opportunities and challenges. 18. The ISP-2 document was developed between October 2009 and September 2010 through a gradual and open process as stated in IPDF that consist of four steps namely: Conducting a mid term review, Consulting with various stakeholders, Preparing a new reiteration of the ISP, Disclosure publicly the approved ISP. 19. As stated in IPDF and part of participatory mechanism within Tangguh social program, there are three regular participatory activities conducted by ISP implementing unit, they are Papua Stakeholder Review Meeting (PSRM), Non Governmental Organization (NGO) Forum, and Community Action Planning (CAP). The events are intended ensuring the program will reflect lessons learned, priorities, needs, and experiences of the various stakeholders. It is the source of ISP-2 formulation. Onar Lama 23 September Fisheries equipment Livestock development Provision of food supplement Vocational training Saengga 4-6 October Local art & culture Vocational training Provision of agriculture input Capacity building for village government Incentive for teachers and students Tanah Merah 11 October Fisheries equipment Agriculture input Provision of food supplement Vocational training Incentive and support for education Table 2: Raised issues in DAVs DAvs Date Participants Raised Issues Taroy Weriagar October January Infrastructure development Maternal and child health Scholarship for students 46 Maternal and child health Water and sanitation Walkway development Otoweri 27 October Support for health services and provision of equipment Water and sanitation Incentive for education Livelihood tools & equipments Infrastructure development Tomu 9 November Incentive for teachers and students Vocational training and provision of equipment Infrastructure development Mogotira Irarutu III January February Walkway development Incentive for students Vocational trainings Provision of food supplement Equipments for primary health services 42 Livelihood for women Provision of food supplement Infrastructure development Ekam Tofoi 9 November November Incentive for teachers and students Maternal and child health Agriculture input Fisheries equipment 67 Fisheries equipment Incentive for students Water and sanitation Infrastructure development Tomage 5 May Infrastructure development Onar Baru 22 September Agriculture and fisheries development Provision of food supplement Incentive for students and teachers Sebyar Rejosari 11 May Vocational training and provision of equipments Literacy class Water and sanitation 20 21

12 20 A mid term review already conducted and submitted to lenders in May 2009, followed by a census and series of study on LARAP, governance program, food security, demographic and livelihood condition. Consultation with various stakeholders was conducted three times, January 17-27, February 8 March 8, and May The intention of the consultations were seeking input to help define the scope, content, and direction of the ISP based on the changing context. Table 3: Summary of Consultation Process Date Location Stakeholders Raised Key Issues 20 January January March March March March 2010 Arandai Village Tanah Merah Baru (TMB) Village Principals, teachers, students of junior and senior high schools Board of local cooperatives and villagers Strategy to meet national standard Lack of teachers Corporal punishment and local culture Lack of electricity Local organizations still need further support More vocational trainings are needed to enhance production and income. Bintuni Team of PSKK UGM Weak capacity of local government affects the effectiveness of government programs. Many national regulations and standards are not implemented. Bintuni Bintuni Bintuni Team of IPB and local planning agency Secretary of Regency and Deputy of Regency Head Agriculture office, Health office, Education office, Marine & fisheries office, Local planning agency, Secretary of local parliament The method used in the consultation was in-depth interview to key source persons, discussion with local stakeholders especially implementing partners, local government and local peoples. A series of interview and discussion with field staff responsible of 14 programs already identified the impact and overlap among programs. Several discussions with local stakeholders are summarized in the following table. Consistency of policy is needed for enhancing agriculture performance. Developed infrastructure requires well-maintained. Lack of capacity of local government officers The need to make local government well function independently. As new district, there are some areas need to be strengthened. There are some new local policies that can be used to enhance people s welfare. Further collaboration between BP and local government need to be formulated and strengthened. 22 May May 2010 Tanah Merah Baru (TMB) Village and Weriagar Village Bintuni Farmers and villagers at TMB Village head and indigenous people leaders Team of British Council 21. The ISP-2 document addresses the key issues raised during consultation. In addition, we also consider other data/ information from Tangguh business plan, reports of study and assessment, central and local Government regulations (including AMDAL) and plans/priorities, changing political and social context and lessons learned of previous sources. Development of ISP-2 document was conducted through discussion and consultation on the drafts involving expert from BP headquarters for bringing best practices and lessons learned from other BP s operation in other part of the world. Families in TMB already developed more livelihoods to increase income. There is a concern on the commitment of local government to maintain electricity and clean water services in TMB. Division of villages create more demand for capacity building. Weriagar Village able to produce some regulations that replicated by other villages. Problems of education are lack of human resources, lack of transportation, weak institution. Government already adopted free cost education policy

13 Relevant External Standards and Best Practices 22. The development of ISP-2, like the ISP- 1, is guided by both global standards and best practices including indigenous people and environmental issues, and national requirements and regulations. The following documents set forth some of the standards and practices according to which Tangguh LNG operates: 23. The Tangguh LNG is a green-field facility for producing and exporting LNG and gas condensate. The LNG plant site is located on the southern shores of Bintuni Bay in Bintuni Bay Regency of Papua Barat Province, as shown in Figure 1. The gas resource for the Tangguh LNG is sourced from six natural gas fields: Vorwata, Wiriagar Deep, Ofaweri, Roabiba, Ubadari, II. External and Internal Context Project Context Tangguh LNG Social and Environmental Impact Assessment (AMDAL) BP s new Group Defined and Recommended Practices for projects (GDP and GRP ) Asian Development Bank (ADB) policy on Involuntary Resettlement ADB s policy on Indigenous People and Wos as shown in Figure 2. The current development includes all facilities for the production, collection, and transmission of natural gas and associated liquids from the Vorwata area. The gas is produced from offshore locations and transported via pipelines to an onshore LNG plant to be purified and liquefied into LNG for marine export by LNG tankers. 25

14 TANGGUH LNG PROJECT Figure 1. Project Location Figure 2. Tangguh Gas Reservoir 24. Tangguh LNG covered in the approved Integrated AMDAL consists of 6 (six) primary project activities as follows: 1. Gas exploitation facilities development (Drilling and Platforms); 2. Gas transmission pipeline development; 3. LNG plant development (and its supporting facilities); 4. Marine facilities development (Construction Jetty, Combo Dock, LNG Jetty, and Shipping); 5. Airfield development (originally planned to be built within Tangguh site but after further consideration, the plan is deferred pending further reviews); and 6. Resettlement of the pre-existing Tanah Merah village. 25. The unprocessed natural gas feedstock will be delivered from up to forty eight production wells located in three of the natural gas fields -- Vorwata, Wiriagar Deep, and Roabiba. The other three fields -- Ofaweri, Ubadari, and Wos -- continue to be defined and will ultimately be tapped. 26. The initial development includes two offshore platforms in water depths of 50m to 60m located in the Vorwata field designated VR-A and VR-B. Fifteen production wells have been drilled from these two platforms. Nine wells were drilled from the VRB platform, however, one well was temporarily abandoned for technical reasons. Six wells were made ready for production at the VR-A. The well depths are about 4600 m. 27. The gas is transported from the VR-A and VR-B platforms by two separate 61 cm (24 ) diameter subsea pipelines of approximately 20.5 km and 19.3 km in length respectively to the Onshore Receiving Facilities (ORF) at the Tangguh LNG plant where it is processed into LNG. 28. The LNG plant initially comprises of two production trains with an annual production capacity of 7.6 million tones. An LNG train consists of equipment that purifies and liquefies the natural gas. Figure 3. LNG Plant and its Supporting Facilities 26 27

15 29. The marine facilities consist of; (a) 1.6 km long jetty to an LNG loading dock, (b) a separate 1.2 kms long trestle to a multi-purpose dock ( Combo Dock ) used to support importation of equipment and materials for the onshore facilities construction, offshore drilling operations, cargo and personnel marine transportation, and the loading of condensate during the Operations phase. 30. Since second semester of 2009, Tangguh LNG has entered the operations phase, and this has led to different affected components and impacts. The AMDAL document has already identified the social, economic, cultural, public health and security impacts of the operation phase of Tangguh LNG. 31. Several potential significant negative impacts and significant positive impacts as indicated in AMDAL are summarized in the following table: Table 4: Significant Impacts of Operations Phase Significant Negative Impact o Difficulty in cooperation, conflict intensification, and problem of adjustment among the local people and between the local people and the project. o Decrease of fishing areas o Disruption of shipping routes o Income distribution gap o Gap of education related social status o Public attitude and perception towards the project for certain groups can be negative o Uncontrolled population growth and density o Uncontrolled migration o Family income level and patterns for certain groups such as fishermen can decrease o Cultural heritage in certain areas can be endangered o Project security disturbance potential o Potential threat to public order o Public and social facilities gap o Dispute on communal resources ownership o Prevalent diseases for certain diseases can be worse o Dispute with forest concession owners o Excessive natural resources utilization o Land value decrease o Problem on assimilation and integration Source: ANDAL (5-168, 920-eia-401 Rev 0C), modified Significant Positive Impact National o Increase of tax payments Province and Regency o Increase of tax payments o Increase of gross domestic product o Increase of export value o Increase of foreign exchange earnings o Proliferation of economic development centres Local o Decrease of unemployment rate o Family income level and patterns for certain groups can be improved o More opportunities on employment and business development o Improvement of income distribution o Improvement of public and social facilities o Betterment of education related social status & occupation o Public attitude and perception towards the project for certain groups can be positive o Improvement of public health o Prevalent diseases for certain diseases can be tackled Others o Cultural heritage in certain areas can be protected o Increase of land value o Better access and quality of education 28

16 32. In general, the operations phase is expected to provide wider direct and indirect positive impacts especially on the economy and the financial situation of both local government and local communities. On the other hand, the most anticipated impact of the operations phase is the growing expectations of local stakeholders that Tangguh LNG will provide more assistance and benefits than before. ISP-2 is expected to address these excessive expectations. 34. ADB defines indigenous people as those with a social or cultural identity distinct from the dominant or mainstream society. The World Bank recognizes that the identities and culture of indigenous peoples are inextricably linked to the lands on which they live and natural resources on which they depend. 35. Law 21 of 2001 on special autonomy in Papua defines indigenous people as those who came from Melanesian ethnic groups and/or those who are accepted and acknowledged as Papuan indigenous people by Papuan customs (adat) within the local communities. 36. In Bintuni Bay, the population s background is heterogeneous and made up of 38 ethnic groups. Among these ethnic groups, there are seven groups that are considered as indigenous; they are Wamesa, Irarutu, Soub, Sebyar, Kuri, Moskona, and Simuri. They are spread out in different villages in the Bintuni Bay District. In the affected area, there are two main ethnic groups that acknowledged as indigenous people, they are Sebyar and Simuri. Based on the latest census in 2009, 70% of local population in which ISP implemented are indigenous people therefore the beneficiaries of Tangguh ISP programs are mostly indigenous people. Indigenous People 33. There are several negative impacts of the operations phase. The most obvious ones are a smaller workforce than in the construction phase, and the impacts of heavier sea traffic on livelihoods. The workforce in the operational phase is not only smaller, but also has to be more skilled and experienced. Together with the challenge of develop diversified and sustainable livelihoods, the workforce issue has shaped the direction and content of ISP Generally speaking, ethnic groups comprise several clans, which in turn comprise several extended families. Typically, each clan is led by the head of the clan. There is also a head for each ethnic group. The person acts as a representative of the ethnic group while the head of clan manages matters with external parties. 38. The Indigenous People Development Plan (IPDP) as stated in ANDAL already identified several issues and commitments regarding indigenous people that need to be addressed. They were already addressed in the ISP-1 and will be still addressed in the ISP-2 by acknowledging developing needs of indigenous people and by ensuring their perspective is taken into account in all programs. Issues and commitments that have already been addressed and completed include housing, livelihood, land title, health and education services. The future challenge of the Indigenous People Related Program is to manage indigenous knowledge and use it as a foundation for local development. ISP-2 will address this issue. IPDP Section Table 5: Issues & Mitigation of Impacts on Indigenous People ISSUE OR IMPACT 10.1 Change in Access to Marine Resources 10.2 Traditional Rights and Recognition 10.3 Employment Opportunities MITIGATION OR ACTIVITY OBJECTIVES Ensure access to same or replacement protein and income sources o Maximize cultural harmony within and around the Tangguh LNG Project. o Minimize or prevent the marginalization of indigenous people in DAVs o Contribute to DAVs sense of self and cultural pride o Maximize the participation of DAV people and other Papuans in the project workforce. o Improve harmony within the multicultural workforce and between the project and the DAVs 10.4 Health Maintain or improve the health status of the community by working in partnership with health authorities and other organizations 10.5 Social Cohesion and Adjustment 10.6 Security and Human Rights 10.7 Spatial Plans and Changes in Zones 10.8 Forum for Development Dialogue o Build trust and communication within and between people in DAVs. o Fluid communication to rapidly identify and resolve potential issues o Protect the project s human and material assets o Promote secure surroundings and peaceful existence for DAVs Work with government to develop strategic programs to distribute benefits of the project, to promote regional growth centres and discourage unsustainable rates of growth in DAV. Enable frequent and effective communication within and between project stakeholders and project proponents / promoters Cultural Heritage Sites Avoid disturbance of sites where possible, and ensure appropriate management of sites where disturbance is unavoidable. Source: RKL Appendix F (F-37 F-41), modified 30 31

17 39. Papua and West Papua have been among the provinces in Indonesia most favoured by fiscal transfers to provincial and local government from Jakarta. In 2002, the province received about IDR 1.7 million per capita (second only to East Kalimantan). In 2009, Papua and West Papua (along with 36 regencies/cities within them) received about IDR 7.5 and 8.9 million respectively per capita more than any other province. Ministry of Finance (2010) reported that Bintuni Bay Regency has a high local poverty and fiscal index 2 (5.683). It makes the local government has the obligation to allocate high amount of local fund for public affairs (Dana Daerah untuk Urusan Bersama, DDUB 3 ). Area Setting 2 Local poverty and fiscal index showed the linkage of local fiscal ability to percentage of poor population in the respected area. 3 DDUB is an allocation of local budget for poverty alleviation 42. Following the progress made by Tangguh LNG, various initiatives on oil and gas exploration initiatives and other investments are developing. Different companies using different approaches conduct these activities. There are several possible consequences regarding the trend: Table 6: Human Development Index (HDI) of West Papua Province HDI Ranking It is unfortunate that the additional finance does not translate into significant improvement in the Human Development Index (HDI). The province is experiencing steady improvement in the HDI, but the ranking versus other Indonesian provinces is unmoved at 30th due to similar improvements in other provinces. This indicates problems with capacity, institutions, and governance that prevent development activities from being effective. 41. Tangguh LNG is still the largest investment in the province so far. It is pioneering the development activities in Bintuni Bay area. The implementation areas of ISP are five districts in Bintuni Bay Regency and one district in Fakfak Regency. The districts in Bintuni Bay Regency are located on the south and north shores. The list of the districts can be found in the table 7. Migration can be very dynamic, primarily caused by the mobilization and demobilization of the oil and gas industry workers, and this will be followed by secondary migration, which is made up of people who want to develop non-oil and gas economic activities. The different approaches to deal with migration applied by different companies can result in social tension and conflict that could lead to community relations and security challenges for Tangguh. Table 7: Villages and Districts where ISP is implemented Districts Villages Location Weriagar Weriagar Mogotira Bintuni Bay, north shore Arandai Taroi Bintuni Bay, north shore Tomu Tomu Ekam Sebyar Rejosari Bintuni Bay, north shore Babo Irarutu III Bintuni Bay, north shore Sumuri Bomberai The different approaches especially to security, workforce, and social programs or corporate social responsibility (CSR) practices are also potentially creating overlap problems and challenges. Onar Lama Onar Baru Tofoi Saengga Tanah Merah Baru Tomage Otoweri Bintuni Bay, south shore Fak-Fak These factors will be taken into account in the planning for ISP-2 and will shape the program formulation. Progress and Achievement 43. ISP-1 is comprised of 14 programs that aim to lay the foundation for both supporting and accelerating development of local communities including indigenous people as well as to build the operational sustainability of Tangguh LNG. There are three generic activities: Conducting social investment, the activity covers: o Fulfilment of basic needs: namely food security, health, education and housing. o Social mobilization targeting groups such as fishermen, farmers, traditional leaders, and women. o In line with the activities, Tangguh LNG facilitated the development of community foundations namely Dimaga Foundation and Bintuni Bay Development Foundation (YPTB). Dimaga Foundation manages endowment fund that used for education and livelihood of three main ethnic groups. YPTB is intended to be a local development oriented organization that provides support for development activities in Bintuni Bay area, in recent years more attention is given to north shore villages. Facilitating economic linkages, there are several detailed activities: o Livelihood skill development and equipment such as fishing and agriculture skills and equipment. Woman is more active in agriculture related livelihood

18 o Access to finance is conducted through local cooperatives and microfinance. Woman proved to be the key to ensure the effectiveness of the organizations. o Improvements in access to markets especially through stocking points; for example, Tangguh LNG s catering service bought local fishery and agricultural products from the local stocking point. Supporting governance effectiveness covers activities for local government officials and local decision makers including local parliamentarians on revenue management and good governance. 44. To measure the impact of ISP activities, BP conducted several studies of the social and economic aspects of local communities, including a demographic and livelihood census in DAVs and six years evaluation of the Resettlement Program in The intention of the studies was to identify and indicate the impact of ISP. Several findings are listed below. Populations in affected villages are dominated by children and working age population. The success of the health program contributes in part to decreasing mortality rates and increased life expectancy for children. The welfare of local community in which ISP has been implemented showed improvement. In 2007 the welfare index was increasing to in The improvement in welfare is also demonstrated by the growth in household incomes. All the villages have larger household income as shown in the following table. Table 8: The Growth of Households Income by Villages Villages Household s Income (IDR/month) % Weriagar ,86 Mogotira ,84 Tomu ,03 Ekam ,28 Taroy ,99 Sebyar Rejosari NA Irarutu 3 NA Tofoi ,33 Tanah Merah ,41 Saengga ,43 Onar ,12 Otoweri ,74 Tomage NA NA: Not available (the villages were not surveyed in 2003) 4 Villagers in Tanah Merah participated in 2003 survey moved to Tanah Merah Baru and Onar. The 2003 data of family income both villages was same 35

19 While most households in RAVs and DAVs experienced an increase in income, around 20% of households still live below the poverty line. As shown in RAVs, the income as of Tangguh LNG employees, civil servants and private company employees still 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Figure 4: Livelihood of RAVs in 2009 (hundreds per annum, IDR) 30,955 32,350 Tangguh LNG Employee 11,143 17,410 17,347 15,043 Civil Servants Private The quality of community health is increasing; Malaria prevalence is significantly decreasing from 9.2% in 2006 to 1.2% in The case of fatality rate due to diarrhea drop from 22% in 2003 to 0.6% in Improvement of the health services infrastructure and distribution through local government and Tangguh LNG collaboration have contributed to the progress of community health. On education, several programs on basic education, provision of teachers, capacity building for principals, related government officials, teachers, and parents have contributed to the 29,712 25,000 23,600 Trade & Small Scale Enterprise contributes a significant percentage to household income. In RAV, the second biggest income-contributing livelihood is trade and small-scale enterprise. This particular livelihood is mostly adopted by migrants. 21,748 Fishing 19,925 12,053 10,341 Agriculture 5,972 improvement of the participation rate, graduation rate, teacher-student ratio, and an increased literacy rate among local communities (85%). The livelihoods of most local communities are fishing and agriculture related work and they are developing. Making fish chips, salted fish, and selling crabs, prawns, and fishes to stocking point are all part of the fishing related livelihoods development. More women now involve in horticulture development and sell their product to both local market and stocking point. It is part of the agriculture related livelihoods development. Promotion of Development Based on Community Assets 45. ISP-2 is developed on the back of ISP-1 achievements, especially the development and accumulation of the assets of both local communities and local government. These assets are already utilised by local people to improve their lives. ISP-2 will strengthen and enrich these assets to enable local community to be selfsufficient and self-reliant. Natural resources: Tangguh LNG policy on mobilization and demobilization, in-migration, and livelihood, together with management of the direct environmental impacts of the Tangguh facility, have mitigated the impact on the natural environment. The population in the Bintuni Bay area and especially in the affected villages did not therefore experience significant changes as a result of the changes in the natural environment. Livelihood activities that are promoted in the villages are also natural resource based and use organic materials. Environmental preservation activities in the Bay have contributed to the sustainable production of fish, shrimp and crab that remain the main source of income for many fishermen in the area. Human resources: ISP-1 invested heavily in human assets in the form of capacity and competency building for many stakeholders such as government officials and local members of parliament in the governance program, fishermen, women, and youths in the livelihood program, teachers, principals, parents, and government officials in education programs, and doctors, nurses, health workers, in health programs. The activities have led to improved school, more skilled farmers and fishermen, the development of small business and kiosk owners, made women economically more involved and active, created people-driven public policies, and contributed to public services. In other words, human assets in the Bintuni Bay are improving. Community based organizations and participatory planning: Implementation of ISP-1 also contributed to the development of many community-based organizations and participatory mechanisms in villages. Several cooperatives, self-help groups, producer s associations, and women s groups are present and serve the villagers. Participatory planning as practised in Community Action Planning (CAP) is widely acknowledged and accomplished by villagers and village government. Development of community-managed organizations and participatory skills are the main contributor for stronger social assets in the area. Infrastructure improvements: Many developments in the area were conducted by Tangguh LNG especially through CAP, meeting not only people s immediate needs but also improving their livelihoods. Public infrastructure and facilities, housing, schools and health posts are the main forms of physical development. Jetty docks and workshops are examples of livelihoodrelated physical development. This development improved physical assets at local levels allowing better access for local people

20 46. The economy in Bintuni Bay area was dominated by subsistence and heavily dependent on nature. The presence of Tangguh LNG and ISP implementation are accelerating economic development in the area through capacity development, institution strengthening, infrastructure development, and improved access to economic sources such as market, knowhow, finance, and information. 47. In the last five years, there have been several types of benefit shared by local communities; they are the introduction of alternate employment, betterment of education and health access, improvement of household incomes, promotion of women s role in the local economy, and greater influence of indigenous people in local development. Nevertheless, poverty at local community level, especially among indigenous people and other vulnerable groups such as women and children, and culture revitalization remain a further challenge for ISP. Based on external panel recommendation, ISP-2 will focus on cultural values instead of institution. III. Overall Goal 48. The overall goal of ISP-2 is defined as to support local efforts to enhance the quality of life of local communities through participative and accountable local development practices and to contribute to Tangguh LNG operational sustainability. 49. ISP defines life quality as two mutually reinforcing aspects, which are the betterment of local community wellbeing, and the wider opportunity for local communities to pursue their own development process. The well-being of local community refers to Millennium Development Goals (MDGs). Tangguh LNG strives to achieve the objective through ISP and by doing this contributes to the achievement of MDGs. Millennium Development Goals 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria, and other diseases 7. Ensure environmental sustainability 8. Develop partnership for development 38 39

21 50. Participative and accountable local development practice is local development based on the participation of local communities and on their accountability for success. Participative local development practice requires the establishment of a mechanism that enables local communities especially indigenous people in West Papua Province and particularly Bintuni Bay Regency to influence decisions, policies, programs, and resources that affect them. 51. There are two ways for accountability to be realised in local development practice, namely Implanting and Responsiveness. Implanting requires accountability mechanisms to be embedded in all development processes and procedures at all levels, special attention need to be given to local governance. On a practical level, this will require dissemination of accountability-related policies to all stakeholders. Appropriate and proportional incentives and sanctions must exist to ensure stakeholder compliance with accountability practices and procedures, and most importantly, the necessary resources must be made available. 52. Responsiveness will be reflected in the ability and effectiveness of accountable local development practice responding stakeholders concerns and needs, and local government and decision makers willingness to adjust and change policies, programs, and resources when necessary. This requires ongoing communication and collaboration among local development stakeholders. 53. Operational sustainability is defined as the secure and long-lasting Tangguh LNG operation sustained by good relationships, constructive cooperation and engagement with key stakeholders especially with local communities and local government. 54. Learning from ISP-1 lessons, the endeavours to meet the overall goal needs to be guided by social and economic values as stated in the AMDAL. The programming principles are known as (CEPPS): IV. Components of 55. The ISP-2 strategy is based on the progress and achievement of the previous ISP, several key assumptions, the local circumstances, strategic approaches, and Key Assumptions Strategy defined basic strategy. These elements will determine the strategic architecture that will further be incorporated into strategic programs. Consultation : Empowerment : Partnership : Participation : Sustainability : Community priorities drive social programming, in concert with company interests and with support from the government and other partners. The community and civil society enhance their capabilities and take ownership of their own development, with support from key partners. Key people and institutions including NGOs, government, academia, religious organizations, and others work in concert and promote their respective strengths. Community involvement in their development promotes capacity building, sustainability, and replicability. Stakeholder involvement generates program momentum and responsible resource management for the benefit of future generations. 56. There are several assumptions underlying ISP-2, they are: Investment activities by other companies in Bintuni Bay surrounding areas. Currently, several companies are conducting seismic and exploration activities in the area. These activities can lead to strategic investment that will accelerate local economy. Nevertheless, these companies may apply different approaches from BP regarding security and workforce management. If this is the case, it may constitute a risk that will need to be mitigated properly. The availability of government funding. In recent years, local government experienced significant funding allocation comprising a general allocation fund (DAU), a special allocation fund (DAK), resource and tax sharing (DBH), and for Papua, special autonomy funds (Otsus) that enable them to meet required public services, infrastructure development and social welfare. It is assumed that local government still has the ability to finance the costs of public services including health and education, infrastructure especially relating to sea and rivers, and social welfare

22 Figure 5: Central Government Transfers Influence of Local Issues on ISP-2 Strategy Compliance with related national laws. There are several related laws that closely link to ISP, namely law on limited companies, the law on capital investments, and law on agriculture, fisheries, and the forestry facilitation system. The laws will foster cooperation among key stakeholders in Bintuni Bay to share responsibilities and resources to promote local development. Conducive social-political environment. There will be regular local elections in the province and regencies. It is hoped that all the elections will be conducted within the existing legal channel and will not lead to social and political complications. to Sub-National Governments Source: World Bank, 2009 Communication and cooperation among stakeholders. There will be more parties developing economic activities in Bintuni Bay. This will create opportunities for cooperation, but also challenges to have a common platform on local development. Tangguh leadership support the principles of and funding for ISP- 2. The strategy for ISP-2 has been developed in consultation with senior management at Tangguh, with the aim of meeting the Tangguh business plan and needs. The management support for the strategy is essential to enable it to proceed. 57. Several local context issues have already been identified and will be addressed through ISP strategic programs: Lack of capacity among development stakeholders in the area: government officers, civil society, and professionals are lacking both technical and management competences. This deficiency limits their ability to take fully responsibility for development processes and to develop institutionalized collaboration. Lack of institutional frameworks and competencies for fiscal and administrative management: these lead to ineffective governance practices and poor performance of social welfare, public services, and other development activities. These capacity needs must be addressed. Technical weakness in terms of knowledge, skills and exposure to spatial plans, master plans, business development, problem-solving and participatory approach among decision makers: this includes the risk of brain-drain due to weak incentives/ motivation factors to remain in one s locality. On the other hand, inmigration means local people have to compete with better skilled and experienced migrants. Challenging geography: rugged terrain, long distances between communities separated by rivers and the Bay, and uninhabitable areas all limit capacity interventions, or increases the time and cost of the intervention. Unavailability of regular sea-river transportation: livelihood and income generating activities to improve people s well-being and support local development are facing a bottleneck. Access to raw materials, other productive inputs and wider markets is heavily limited. Cultural identities became more invisible and less practiced at local levels: the trend needs to be reversed by strengthen cultural identities of indigenous people through documentation and practices especially among younger generation. The existence of informal indigenous institution at district levels and village levels: this requires better coordination and networking. Development strategy, policy and program should provide adequate space for informal group participation, even when local structures may not include informal groups. Communication and cooperation among local stakeholders are not institutionalized: Regular communication and cooperation among development stakeholders in Bintuni Bay will determine the effectiveness and impact of any development initiatives and interventions. Different priorities and interests among stakeholders mean that regular communication is a must to enable productive cooperation. Communities have already experienced some benefits from ISP-1: this is likely to make them receptive to ideas about continuing with successful development methodologies such as participative needs analysis and participatory planning. On the other hand, there are many expectations toward Tangguh LNG especially to provide job opportunity. The expectations need to be managed appropriately

23 58. ISP-2 uses five approaches to meet the overall goal and develop strategic programs. The approaches relate to the way ISP-2 interacts with local stakeholders, tackling the problem of Strategic Approaches Moving into Development by Community development ineffectiveness, selecting administration areas and intervention sectors, and dealing with key issues such as the environment, poverty, and gender. 59. Conceptually, in the last six years, the development intervention conducted by Tangguh LNG through ISP can be identified as development for community. This type of intervention emphasises the role of external agents as the motor of development. It was the case of BP in Bintuni Bay. Following the growth of local capacity and involvement of local actors, the existing ISP implementation progressed to development with community in which BP worked intensely in cooperation with local agencies to conduct various development activities. 60. It is Tangguh LNG s intention to move forward into the development by community stage, in which local actors, namely local communities and local government, become the motor of local development by using local resources as the platform. ISP-2 assumes the direction from development with community towards development by community as its guideline in developing strategic programs. Table 9: Type of Development Intervention Development FOR Community Development WITH Community Development BY Community Main Actors Tangguh LNG Tangguh LNG with local government and local community Local government and local community Type of Relationship Socialization, Consultation Collaboration, Mutual benefit Strategic partnership, Empowerment Implementing Agency Tangguh LNG and external contractors Tangguh LNG, external and local contractors, local government Local community and local government Type of Activities Infrastructure development, direct provision of public and social services Joint program, resource sharing, capacity building Supporting and facilitation activities 44

24 61. The Development by community philosophy of ISP-2 will have three distinctive characteristics in order to achieve its goals: Development activities including planning, executing, monitoring, and evaluation are conducted by local communities and local government using participatory, transparent, and accountable mechanisms. The role of Tangguh LNG and other external parties are to support and facilitating these issues. Resource for development is mobilized and capitalized from available local resource as the base. External assistance will be an additional support. Development process is institutionalized in policies, procedures, and accountability mechanisms that are regularly reviewed and revised by local community. Capacity development improving local governance effectiveness 62. One of the development challenges in Bintuni Bay Regency is the lack of good governance practices among development practitioners and decision makers. The ISP-2 approach is to enhance the capacity of provincial, regency, and other selected districts to encourage stakeholders to practise good governance. The approach consists of several programs: Capacity development for local government, civil society, and media to formulate local development plans, performance-based budgeting, and monitoring and evaluation; Joint resources and collective efforts for investments in small-scale infrastructure and social services to enable implementation and show the effectiveness of the approach; 64. In this approach, Tangguh LNG recognizes its limitations and consciously selects certain geographical areas to be developed. By selecting certain areas, certain methods of intervention based on local assets and resources can be developed. Inter-area cooperation programs also fall under this definition, as long as two (or more) individual areas or regencies recognize that there is an area-specific problem within their borders, even if the area spills over into a neighbouring area Selected area development Monitoring of the implementation of the plans to permit downward and upward accountability coupled with learning lessons from the past to improve the planning and budgeting cycle for the future. Regular communication among different stakeholders in the region to develop a shared understanding, synergy, and cooperation. 63. This approach aims to develop improved procedures and systems, such as local planning and budgeting that will enhance the delivery performance of local governments, in terms of their effectiveness, efficiency and accountability. or regency. The focus will be primarily on but not limited to the following areas for the next five years of ISP implementation, namely: Bintuni Bay Regency and Fakfak Regency in West Papua Province,. 65. By focusing on the selected areas, the ISP implementation will be adjusted to local context and in so doing will address local resources and challenges while maintaining the perspective of achieving the overall goal. The approach will ensure that problem can realistically and effectively be addressed at the level of the selected area. Problems that can be solved at the national level, for example through legislation, should be addressed at that level. In this respect, successful programs apply a bottomup approach to development that feeds into policy and institutional reform 66. Tangguh LNG will focus its social programs on five key programs that are based on previous experiences and have demonstrated that hey can have a significant multiplier effect on local communities. They are governance, communication & external affairs, community health, education & training, and livelihood. Annexes of this document give more details on these five sectors. The approach supports fulfilment of basic services and develops local-level organizations, whether governmental, non-governmental or private, to deliver basic services that meet the needs of local communities. This approach takes a sector as its entry point, rather than a social unit or a political entity. 67. On the supply side, this approach helps to define appropriate technical standards and levels of service, establish criteria Key program development. at the provincial and national level through a combination of horizontal and vertical links, thereby linking micro-level issues with macro-level considerations. Replication of best practices of ISP in other areas is an example of the linkage that will be promoted. Potential districts in the West Papua Province where the ISP can be replicated are Sorong, Kaimana, Manokwari, Raja Ampat, Teluk Wondama. Tangguh LNG can work with the local government units to provide technical guidance on how various ISP activities can be implemented with local government financing and initiative for their use, and promote appropriate technologies and organizational systems for service delivery and management. It also trains local professionals, public and private, to manage service delivery and provide advisory services to local service delivery organizations to improve the quality of local service provision. 68. On the demand side, the approach aims to promote greater consumer power through local-level accountability mechanisms (e.g. parent teacher associations), marketed service delivery and local-level contracting of services. Included in the approach is promoting of better coordination and coherence between different sectors and levels and support for an integrated local development agenda

25 Poverty-Environment-Gender (PEG) Mainstreaming. 69. There is a causal relationship between poverty, environment, and gender in the Bintuni Bay area. ISP-2 will mainstream three strategic issues in its strategic programs. Based on previous experiences, there is strong evidence that local development in the area is heavily influenced by the presence of poverty, both culturally and structurally linked to fragile environment sustainability and gender bias is widely practised in many aspects of life. 70. PEG mainstreaming is the incremental process of integrating poverty, environment, and gender linkages into policy making, budgeting, and implementation processes at village, district, regency, and provincial level. This process also encompasses open participation. The mainstreaming is a multiyear effort that requires the involvement and commitment of multiple stakeholders. 71. Tangguh LNG recognizes the differences of stated approaches to the ISP-1 approach. To implement the approaches, a transition process comprise of risks mitigation, capacity building and institutional adjustment will be conducted by Tangguh LNG. 72. ISP-2 is a continuation of and at the same time an improvement on the ISP-1. Lessons learned and changing contexts bring new challenges that shape the ISP-2 and its key characteristics, which are Asset based. ISP-2 will emphasize the usage of locally owned assets as the foundation of local development. It is driven by the understanding that local communities have the assets and have already been enhanced by previous programs. Key beneficiaries will be households and community based organizations. By focusing on households and CBO, it is expected that local communities develop their own social capital to tackle daily life problems. Key Characteristics The intention of ISP-2 is not merely delivering services to beneficiaries. The ultimate intention is developing a sense of ownership and involvement by local community and local government in local development initiatives. Local ownership and involvement will help to make the initiative sustainable. 48

26 73. The AMDAL document stated that the strategy for managing impacts is the 74. The idea of DGS is to create development with quality and equality. Most people within the targeted local area should contribute to the local economic development of that specific area. It is important in the Bintuni Bay context to avoid a honey pot syndrome in which a single economic activity dominates the local economy and attracts migration from other areas. Two key elements of DGS are: An ongoing program of technical assistance to support government capacity in spatial planning and change management. Efforts to minimize migration to the project site and supported development in existing growth centres. 75. Through diversified growth, reduced disparity in access to resources, increased capacity and access, the positive impacts of development can be reinforced. Furthermore, each area can develop its own development based on its existing resources and strength. In a broader perspective, the development of areas with distinctive characteristics and differences can reduce potential rivalry and promote inter-area cooperation that will strengthen the base of regional development. 76. ISP-2 will approach DGS through support to three main activities, namely: Strengthening development planning process. The Government of Indonesia already has a national process of development planning known as musrenbang. The process starts at village level and is implemented by a national planning meeting. While the Basic Strategy Diversified Growth Strategy (DGS) Diversified Growth Strategy (DGS) and the Community Action Plans (CAPs). process is already well developed, it remains a fact that for many local governments, including the West Papua Provincial Government and Bintuni Bay Regency Government, the process is very challenging due to the lack of competence of local government officials. Institutionalization of good local governance. The level of development funding per person in Papua is one of the highest allocations in the country. It is unfortunate that development activities in the area have not improve people s lives significantly. Support to enhance the capacity of local government officials, followed by institutionalization of good local governance will increase the effectiveness of the development process in the area and will impact upon other surrounding areas. Revenue management. Papua is known for its rich minerals and oil and gas deposits. Through special autonomy and the central government s financial arrangement of, West Papuan Provincial Government and the regencies will receive significant increase in revenue. The revenue needs to be managed in a prudent and careful manner to be able to effectively develop the well being of local people. Revenue management activities will give understanding and knowledge to local stakeholders for the handling and use of the revenue. 77. It is intended by Tangguh LNG that ISP should strengthen local initiative and ownership of local development activities. Tangguh LNG has implemented a Community Action Plan (CAP) that gives local people the opportunity to initiate a development program through open and transparent public discussion. CAP will be further developed and institutionalized, motivating communities to use it to plan any development programs in DAVs. 78. CAP is a process that communities own and use to periodically plan their own development and evaluate the achievement of previous initiatives. Other similar processes will come from external parties such as national government (Musrenbang and PNPM), local government (RESPEK and ADK), private companies (Tangguh LNG and others) and they will be part of the overall plan. Community Action Plan (CAP) 79. It is intended that CAP will be mainstreamed and institutionalized into development mechanism of the village and district government. The CAP will ensure that local development process and social initiatives are community driven and place the local community as the owner and subject of their own progress. All other actors and initiatives should be treated as contributors and supporters of local development process including Tangguh LNG. ISP-2 will be positioned not as the owner of CAP but more as promoter and supporter of CAP. 80. It is aimed that CAP will drive to a local development process with the following features: A more efficient allocation of resources based on local needs and priorities; Stronger beneficiary ownership; More transparent and cost-effective management of resources; Strong social capital and networks. Figure 6: Community Action Plan (CAP) Framework 50 51

27 81. The architecture of ISP-2 strategy is comprised of three main blocks: the Foundation, the Building, and the Roof. The Foundation consists of programs that function as the enabler for other programs. The Building consists of interconnecting rooms in which key initiatives will be delivered. The Roof is the overall goal that will be achieved through the programs. 82. The foundation comprises governance, communication & external affairs programs. They are pictured in dotted lines, meaning the programs are open and there will be more synergy. Specifically, the programs have distinctive roles: Strategy Architecture Governance Program is intended to improve the governance of local stakeholder in both government and civil society domains. It will be done in accordance with transparency, accountability, and participation principles. Communication & External Affairs Program is intended to promote mutual respect and constructive relationship between Tangguh LNG and its key stakeholders especially local government and indigenous people. The other intention is to develop awareness among public in Papua on the role and benefits bring by Tangguh LNG presence. 83. The building consists of three open interconnected rooms namely livelihood, community health, and education & training. The effectiveness of the programs will be influenced by the success of the foundation programs. The programs are also pictured in dotted lines meaning that there is some synergy and collaboration between them. Nevertheless, each program has a special role, they are: Community Health Program is intended to support the improvement of health quality and accessibility of health services. Education & Training Program is intended to support the achievement of an educated and skilled local population. Livelihood Program is intended to support the creation of diversified and sustainable income sources of households in DAVs and empowerment of indigenous Papuan contractors to be competitive. 84. The architecture shows the connection between the programs and their roles in the strategy design. The connection can be characterized as inter-dependency and inter-connectedness. While each program focuses on using the previous achievement as its platform for achieving an objective, it will also support and collaborate with other programs to achieve the overall goal. Overview of Strategic Programs Figure 7: Strategy Architecture of ISP Overall Goal 85. The ISP-2 document is a Guide and will describe the basic and minimum requirements for implementing the programs. More detailed plans containing information about activities, beneficiaries, sites, roles and responsibilities, milestones/ targets, budget and timescale will be developed annually. and supporting factor for improving the quality of life for the local community including indigenous people. Formulated strategic programs as stated in this section are developed to be achieved not only by Tangguh LNG but also by significant involvement and contribution of other local stakeholders. Livelihood Governance Community Health Education & Training Communication & External Affairs 86. The structure of the programs is based on management principles that focus on the achievement of results for objectives, outcomes, and key output as a chain of results. 87. Following the approach of development by the community, it is recognized that ISP-2 is only one among several other initiatives in the Bintuni Bay area to develop local community. Therefore, the programs of ISP-2 must be seen as a contributing 88. In developing the programs, Tangguh LNG recognizes the roles and functions of local governments especially in delivering basic social services and public administration services. Tangguh LNG sees ISP as a part of local development initiatives lead by local government and will be managed in accordance with good governance principles. Gradually, Tangguh LNG will transform its role more as supporting the initiatives of local stakeholders, especially local government

28 Figure 8: Chain of Results for Programs 1. GOVERNANCE 89. Context. Previously there were several programs that constituted the ISP- 1 governance program. They were governance and revenue management, civil society strengthening, ICBS (Integrated Community-based Security), CAPs, women s empowerment, and government and civil society in Bintuni Bay Regency. These programs have laid strong foundations for the next governance program. The production of several development plans, trained government officials, responsible security arrangements, trust and good relations with local government, civil society, police department, and the armed forces are milestones in the success of the programs. However, many new investment plans for the area, rotation of local government officials, low performance of public services and social welfare create a challenge for the ISP-2 governance program. 90. In accordance with the approach to encourage partnership with local stakeholders, the governance program will cover local government and local civil society. The program is intended to enhance the institutional set up within local organizations, thus providing an enabling environment for the rest of the development agenda. The governance program will also facilitate behaviour change among key stakeholders including indigenous people so that they are constructively involved in local development processes. 91. ISP-1 programs developed several assets and opportunities over the last five years. The assets include many physical infrastructures, several well-functioning and locally managed cooperatives and groups, competent local community including indigenous people in livelihood 55

29 skills. These assets have become the base for ISP-2 and support the promotion of Asset Based Community Development (ABCD), which Tangguh LNG believes is a must for ISP-2. The premise of ABCD is that communities can drive the development process themselves by identifying and mobilizing existing (but often unrecognized) assets, and thereby responding to and creating local economic opportunity. In particular, ABCD draws attention to social assets: the gifts and talents of individuals, and the social relationships that fuel local associations and informal networks. 92. ISP-2 needs to build on the opportunities offered by government programs that will deliver support for villages and invite local community participation in the development planning process. The existing participatory planning process, as practiced in CAP, can lay the foundation to expand and develop the opportunities. 93. Program s Objective. The objective for the ISP-2 governance programs is contribution to the improvement of governance of government and civil society in accordance with transparency, accountability, and participation principles. 94. Desired Outcomes. The desired outcomes consist of support for Improved performance based development planning and budgeting by government through integrated, participative, and representative process. Improved public services on health, education, and public administration through transparent and accountable management. Increased awareness by governments and communities in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages about the impacts of in-migration, and improved ability to manage it. Improved participation of civil society in oversight of socio-economic development process and security management of Tangguh operation (ICBS) 95. Key outputs. There are several key outputs from the governance program that will be facilitated, namely Trained government officials on development planning through integrated, participative, and representative process Trained government officials on the development of performance based budgeting through integrated, participative, and representative process Trained government officials and local key stakeholders on basic knowledge of the oil & gas industry, and of the revenue distribution mechanism relate to Papua Special Autonomy Law (UU Otsus Papua). Policy draft on implementation of development planning and performance based budgeting (ABK). Strengthened local government agencies (dinas/skpd) to conduct governance related capacity building, and change behavior training.. Local community involvement in the development process. Assisted public service management to improve transparency and accountability policy and system. Trained senior officers and frontliners of local government s agency to provide better public services. Availability of public service performance indicators Support for government officials in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages to implement in-migration management system. Improved community awareness of inmigration impacts. Facilitated civil society forums (seminar, workshop, FGD, etc) to oversee socio economic development at province and regency level. Well-functioning ICBS forum to promote community based security in DAVs. Increased awareness of local key security stakeholder of the need to respect human rights. 96. Assumptions. Governance program is developed on the assumption that several factors exist: No sudden change and disruption of political process and social life in the Bintuni Bay area. 2. COMMUNICATION & EXTERNAL AFFAIRS 97. Context. It is understood among key stakeholders that good relationships will be mutually beneficial for Tangguh LNG and its key stakeholders. The relationship is a dynamic state influenced by many factors, such as political climate, demographic factors and economic development. 98. Several challenges relating to relationship building need to be addressed. One of the challenges is to develop on going communication, especially with local communities and indigenous people, through existing mechanisms and media. Another challenge is to develop the existing relationships into more constructive ones in which local communities work together with Tangguh LNG to support the stable operation of Tangguh LNG and maximize the benefit of its presence. 99. It is recognized that local culture values play an important role in the development of mutual respect and constructive relationship. Despite the fact that few institutions have an interest in local culture values, Tangguh LNG believes local culture values are influential, beneficial, and need to be revitalized. Key stakeholders, especially local government and decision makers, acknowledge the ISP-2 initiatives and remain willing to participate constructively. There will be no competing initiatives in the area that use a different approach, and yet target the same groups and stakeholders Program s Objective. The communication & external affairs objective for ISP- 2 is promotion of mutual respect and a constructive relationship between Tangguh LNG and its local stakeholders in Papua Desired Outcomes. The intended outcomes to meet the objective consist of support for Improved communication and collaboration with local stakeholders to promote the stable operation of Tangguh LNG. Improved awareness of local stakeholders of benefits of the Tangguh LNG presence. Revitalized local cultural values of tribal groups in DAVs. 102 Key outputs. The community relations program will support several key outputs, namely Regular communication with local key stakeholders (community, government, CSO, media) to update them on the Tangguh LNG operation. Improved partnership with local stakeholders in development programs/activities

30 Well-functioning local stakeholder forum. Updated information on socioeconomic benefits of Tangguh LNG presence (employment, economic opportunities, healthcare, education, tax and revenue, etc) to key stakeholders. Regular information about Tangguh LNG-supported local initiatives on community radio Availability of Tangguh & BP Indonesia communication materials (video, multi-media, etc). Support for tribal groups in DAVs to document their culture (art, language, livelihood, traditional knowledge). Support for local arts events Assumptions. The communication and external affairs program will be constructed and implemented based on certain assumptions, namely: Open-mindedness and willingness of community leaders and board members of local organizations to be change agents in their own respective organizations and communities. No overlap with initiatives for strengthening local organizations and local mechanisms from other parties including local government and private companies. Support from local government to complement the initiative in government development programs. Indigenous people and other vulnerable groups able and willing to be involved in the process and not dominated by certain individuals or organisations. 3. COMMUNITY HEALTH 104. Context. In the last five years, local communities experienced significant improvement to health access and services, together with decreases in sickness and other health problems. Several initiatives such as malaria and diarrhea control resulted in significant reductions in incidence. The local government health agency works closely with Tangguh LNG in implementing health programs and has already adopted some of the initiatives for its own use However, a lesson learned from ISP-1 is that many health problems are closely related to the culture and habits of local communities. Changing local communities culture and habits requires a longlasting effort supported by community leaders and the education of the younger generation Another current challenge in health is ensuring the quality of primary health service providers, including the community health centres (puskesmas), the children under five integrated service posts (posyandu), the pregnant women service posts (posbumil), etc. The role of these providers is essential and strategic, since they are the front liners for improving health quality of local community. Ensuring the sustainability of the providers and their services is a must. 107 A recent study 5 on food security indicated several challenges. On protein adequacy, 40.3% of surveyed households were categorised as worst group compared to total surveyed households. Regarding food security, 75% of surveyed households have experienced temporary or permanent food insecurity. The other health related challenges are the behaviour and lifestyle of local people, and the environment in 59

31 which local communities live. Lack of access to clean water, lack of both availability and usage of hygienic toilets, and lack of waste management are some examples of the challenges. Some communication efforts on these topics have already been conducted by Tangguh LNG in the first ISP. Clearly more effort is needed to facilitate behaviour and lifestyle change, and develop environmental sanitation Program s Objective. The health program has an overall objective which is supporting local government and local community to improve health quality and accessibility of health services Desired Outcomes. The outcomes needed to achieve the objective comprise support for Reduced incidence of malaria, diarrhea, HIV/AIDS, TB in DAVs. Improved quality of mother and child health in DAVs Improved quality and access of clean water and improved awareness and practices regarding environmental sanitation Improved accessibility and quality of primary health service providers 110. Key outputs. There are several key outputs contributing to the health program, namely Maintained malaria surveillance program including screening, early diagnosis, and prompt treatment Improved personal hygiene among local people through CLTS (community led total sanitation) and CTPS (cuci tangan pakai sabun) and improved and appropriate diarrhea treatment as stated in the guideline. Improved active TB case identification through health cadres and field facilitators, followed by proper and complete treatment. Improved awareness among local people about HIV/AIDS Improved service quality of Posyandu regarding nutrition status and immunization coverage. Improved service quality of Posbumil regarding ante natal care. Socialized clean water processing method in DAVs. Supported households having clean water access in DAVs. Support for local households to build their own toilets. Support for provision of primary health service providers in each village Support for improvement of existing primary health service providers regarding the quality and training of medical personnel. 111.Assumptions. The Community Health Program is formulated and will be executed based upon several assumptions, which are: Cooperation and collaboration with local government health office and national health programs. Willingness of local advocates such as religious leaders, community leaders, women leaders, and teachers to support and convey health messages to local communities. Commitment of health workers and health volunteers to develop their skills and ability in providing a qualified health service to local communities Context. Previously, the education & training program covered basic education and vocational training. In the last five years, the ISP-1 program included several additional activities that laid a strong foundation for further education programs: Provision of teachers, Support for school facilities and infrastructure, Support for the provision of text books Improvement of curriculum, Support for the education office at Regency Government level The ISP-1 vocational training program completed workshop construction and conducted various livelihood related trainings. The training was conducted onsite and off-site, with the participation of local people including indigenous people. While there were some improvements and initiatives as the result of the training, it was also acknowledged that further program improvements are needed to ensure that it has the desired impacts. 114.Regarding education, the AMDAL document has three key messages. First, education and training activities are conducted through existing institutions in Papua. Second, the activities of the program will be developed in partnership with government, existing institutions, and qualified parties. Three, the activities will combine methods and inputs to develop existing institutions in providing basic education, and those focused on vocational training for the broader population of Papua The education program for the next five years aims to contribute to development of an educated and skilled local population including indigenous people. Educated 4. EDUCATION & TRAINING local population is defined as a population with access to education and awareness of the benefits of better education. Skilled local population is defined as a population that has the livelihood skills needed to diversify their livelihood and increase household income. To achieve the education program aims, four themes will be delivered: Contribute to enhance the education quality by meeting minimum service standard, Contribute to strengthen education office of local government, Support and invite stakeholder participation and involvement, and Support to vocational education especially relating to promote entrepreneurship Program s Objective. The education program has the overall objective of supporting local government and local community efforts to achieve an educated and skilled local population Desired Outcomes. The program will facilitate the following outcomes:. Full implementation of national education system by local government. Improved attendance of school age children to available education institutions.. Availability of skilled local people especially indigenous people and women Key outputs. The intended key outputs of the support of education program are: Local education institutions are improved to meet education minimum service standard (SPM) in Teluk Bintuni. Local officers of local education offices are trained in the education quality standard and national education system. 5 Food security study by IPB (2009) measures the availability of food, access to food, and physical condition of local people to indicate chronic poverty

32 Improved access to education for school age children from area with limited access Local key stakeholders, especially school committees, are motivated to support student attendance in school. Improved awareness development among children and parents of the benefits of better education. Local people, especially indigenous people and women, are attracted to take part in related vocational trainings.. Existing farmers, fishermen, and business owners increase their skills through livelihood related vocational trainings.. Local organizations are supported to become vocational training providers Context. Livelihood covers many activities that local people undertake to meet their daily needs and provide income. Livelihood Programs of ISP-1 implemented in the last five years included several activities: the introduction of new employment such as agriculture in fishing villages, opening of new market opportunities through stocking points, and numerous training events to diversify villagers fishing and agriculture products, help them to repair their equipment themselves, and support producers organizations Income generating activities of local communities can cover the primary sector such as agriculture and fisheries related activities, the secondary sector such as small-scale industries and production, and the third sector such as trading and other professional services. Household income for local communities will come from 5. LIVELIHOOD 119. Assumptions. The Training and Education Program is crafted and based on several assumptions, namely: Ongoing cooperation and collaboration with the Education Office and Education Programs of local government. Presence and availability of education institutions that provide basic education and training, and staff who are qualified and able to conduct vocational training courses. Willingness of local advocates such as religious leaders, community leaders, women leaders, and teachers to support and convey education messages to local community. Commitment of representatives for teachers, foundations, principals, parents, businesses, and education officials to work together and develop their skills and ability in providing a qualified and professional education service. multiple sources to meet different needs. It is desirable that women should play more significant roles in household income generating activities to give them a greater voice in the decision making process, both in the family and in society The Livelihood program for the next five years will include more comprehensive activities. Livelihood related activities should have inter-linkages between five aspects namely human assets (education and training), social assets (producers organizations), financial assets (microfinance), physical assets (provision of equipment and buildings), and natural assets (environmentally friendly practices) At field level, livelihood programs should deal with input, process, and output aspects of the production process. While it is recognized that BP could not provide support to all aspects of business processes, it is important to identify those aspects of business processes that will give emphasis and a multiplier effect to the specified context Program s Objective. The livelihood program of ISP-2 has the objective of improving capacity of households in local communities to create diversified and sustainable income sources, and the empowerment of indigenous Papuan contractors to be competitive Desired Outcomes. The outcomes of the livelihood program consist of contributing to Increased added value to the existing livelihoods through production process improvement and product development. Diversified household livelihoods for family members, especially women. Improved access for local community and indigenous Papuan contractors to economic resources including markets, financial services, and business related information Key outputs. Several key outputs will be supported by the livelihood program: The development of local products and the improvement of their quality. The promotion of village based agriculture and/or fisheries products and supported by adequate production equipments and materials. Facilitation of business skill development for family member especially women. Provision of support to family members, especially women, to develop business activities. The mapping of economic resources in DAVs. Support for the creation of sustainable financial services to support business development through financial institutions. Support for wider market access and fair trade for local product through trading house. Support for sustainable and relevant information access for local economic players Assumptions. The livelihood program will be developed based on several assumptions: Ongoing cooperation and collaboration with livelihood related offices and programs of local government. Presence and availability of local institutions that can be developed to provide business development services. Willingness of women to have their own business to contribute more to family income. Local leaders and culture allow and support the development of business especially for women Commitment of business stakeholders such as financial institutions and private companies to support local businesses

33 Implementation Framework 128. ISP-2 has a different style for the document set up that is not intended to be detailed. It is more a guideline and a policy document that will provide direction and a corridor for the development of annual operational plans and the implementation of them. The document gives space for adaptation, innovation, and participation of front-liners and local stakeholders to the formulation and implementation of various activities ISP-2 is an incremental and open process that consists of four components, which are called PEME: Planning is the process of developing the annual operational plan based on direction and guidance of the ISP-2 document and puts CAPs results into a context-dynamic perspective. Context dynamics covers various issues such as social, politic, culture, gender, V. Strategy Implementation economy, and poverty at local level. Executing is the process of turning the plan into reality by dealing with all factual conditions and by working with relevant stakeholders. Monitoring is the process of measuring the progress, identification of disparity challenges, providing feedback with aim of assuring a high standard of performance. Evaluating is the process of evaluating performance, measuring the achievement of key output, recording lessons learned, identifying opportunities for improvement in all aspects of project management. 65

34 Figure: 9. Process of Implementation Table 10: ISP Implementation Framework 130. Figure 9 shows the implementation process identifies several strategic points: Planning is developed based on the ISP document as the guideline and CAP is to provide perspective of local context and dynamics. It is also an opportunity to mainstream local aspirations into ISP activities. There is a two-way relationship between executing and monitoring. Executing will be measured and reviewed by monitoring and monitoring will provide feedback for refinement of execution. Evaluation will be used to improve the next plan and also provide feedback for the ISP document especially when a significant change in the area takes place. 131.The format of the annual operational plan can be found in annex 7. The implementation framework is described in more detail in the following table Based on the approach of the strategy, Tangguh LNG will conduct implementation activities using three methods: Partnering with local organizations. Tangguh LNG encourages local organizations as implementing partners. The local organizations cover local government offices, local civil society organizations (CSO) including people s organizations, local NGOs, and indigenous people organizations (IPO), local business entities. Partnering with external organizations. Where no local organizations have the competence, capacity, and experience to be an implementing partner, Tangguh LNG will consider partnering with external organizations, meaning the organizations that are not based in Papua. The condition for the external organizations to be Tangguh s partner is to involve local organizations and develop their capacities and competencies during the implementation activities. Component Main Tasks Checkpoints PLAN EXECUTE MONITOR EVALUATE Planning preparatory activities Develop annual operational plan Develop commitment and partnership Implement commitment with partners Monitoring activities Provide feedback Measure performance Develop improvement ideas and practices Self managed. In unexpected circumstances, Tangguh LNG will able to implement the activities by itself. In these circumstances, Tangguh LNG will self manage the implementation activities by involving as many local resources as possible Partnering process for implementation will be conducted by following and a competency based mechanism and guided by regulation of BP Migas (018/ PTK/X/2008). The process can be defined as follows: o Assemble a planning team, identify & engage local key stakeholders o Review ISP documents & process o Identify local regulations, laws, & other related initiatives o Develop ideas for proceedings o Prepare an annual operational plan matrix o Identify resources and other technical preparations o Communicate to management & related key stakeholders o Do a scan of potential partners and their commitments o Hold discussions with key stakeholders especially local government o Create a working group to develop partnership & to ensure the implementation of commitment. o Preparing implementation with partners including trouble shooting mechanisms o Conducting implementation o Engage internal & external stakeholders o Conduct internal & external communication activities o Assemble a monitoring team o Develop a monitoring plan & approach o Conduct monitoring activities and collecting grievances o Findings analysis & benchmarking o Formulating feedback for project management and Tangguh LNG management o Hold discussions with relevant stakeholders o Assemble an evaluation team o Engage relevant stakeholders o Measure performance against indicators o Report on performance, internally & externally o Hold discussions with project management o Formulate ideas for improvement, lessons learned, & best practices o Make improvement known by relevant parties Identification of partners. It is an on going and open process in which Tangguh LNG seek and receive information on potential partners followed by competency assessment. Selecting partners. It is a process in which Tangguh LNG will request proposals as a means to select partners. Competency and track record of potential partners will be showed in the proposal. Commitment and ability of potential partners to work will be based on Anti Bribery and Corruption 66 67

35 (ABC) and the ability to demonstrate strategies that will meet the key performance indicator (KPI) will be a must. Working with partners. It is a mutual learning process in which Tangguh LNG will share its experiences and lessons learned from previous related activities to partners and partners will share their expertise and past experiences from other related activities During implementation, grievances will be addressed by using the existing process as follows: Receiving grievances. Grievances of the community can be raised and submitted through two mechanisms, namely filling grievance form and directly convey the grievances to field staffs. When field staff receives the grievance directly, he or she should fill the grievance form on behalf of the person. Categorizing and recording the grievances. Filled grievance form will be analyzed, recorded and categorized by the field staffs. The recording is a necessary to ensure that the whole process of responding the grievances not exceeding 14 working days. Submitting the grievances to coordinator and responsible unit within Tangguh. Field staff will convey the categorized grievances to area coordinator and responsible unit within Tangguh. It is the responsibility of the ISP implementing unit to encourage proper and immediate response of the responsible unit. Delivering response of grievances. When the response of the grievances received by field staff, it will be recorded and conveyed to the community directly. The field staff has to have clear response of the community. Grievances close out. When the community accept the response, field staff will record the acceptance and send a report to coordinator. In case of not acceptance of the response by the community, the field staff will record and send it back to responsible unit. Quarterly, ISP implementing unit will consolidate all grievances and the response and deliver it as an input to Tangguh Management The existing grievance mechanism is implemented by using 2006 grievance mechanism SOP adjusted to local context. The previous process need to be updated and adjusted to organizational design, ISP-2, and local community dynamics. Three key components to ensure the effectiveness of grievances management are updated grievance SOP, dedicated personnel, and socialization of the mechanism among local community. 69

36 Monitoring & Evaluation 136. Monitoring. ISP-2 defines monitoring as the process to assess and measure whether planned activities and resources are being conducted according to the Guidelines. This will also determine the level of execution, and provide feedback to improve the execution. Monitoring activities require a detailed plan for each activity, especially targets already laid down for each monitoring period Specifically, monitoring will focus on, but not be limited to, assessing and measuring: Required inputs to conduct the activities including partner organizations, resources, materials, and technology Process management covers aspects such as SOP, quality control, compliance to laws and regulations, risk management, and reporting mechanisms Indicative key output such as acceptance and participation of stakeholders. Tracking of benefits-receiving for the indigenous people and women. Tracking of indigenous people participation as workforce of Tangguh Evaluation. Evaluation is the process to check and analyze the performance and impact of activities against stated indicators. Through evaluation, the level of contribution of each activity into stated objectives and indicators can be measured. The factors that both support and challenge the achievement also can be identified and analyzed. Based on the evaluation, an improvement initiative on the project design and direction will be developed annually Evaluation will focus but not be limited to several items that are: Overall project management design and implementation Achievement of key output and desired outcomes Challenges and lessons learned 140. ISP-2 evaluation consists of mid-term evaluation and final evaluation. Mid-term evaluation gives the opportunity to review and revise the overall social program based on political, social, and economical contexts. Final evaluation will measure the performance and impact of overall ISP implementation. Monitoring o Monthly o Quarterly o Semester o Annually Evaluation o Annual o Mid-Term o Final Internal (Tangguh LNG) Program tracking Monthly report Quarterly Performance Review (QPR) AMDAL report Lenders report Annual performance review Mid-term evaluation (done by independent parties) Final evaluation (done by independent parties) 141. Due to AMDAL, monitoring and evaluation (M&E) consists of internal and external M&E. Internal M&E will be done by a separate unit that has responsibilities for: Coordination with the program development group to ensure awareness and common understanding of program design and especially M&E requirements. Development of an M&E calendar (targets) for all ISP and oversee to ensure that all programs meet their reporting and M&E requirements. Development and timely submission of AMDAL reports Collation and filing of progress and M&E reports for all ISP. Table 11: Monitoring and Evaluation of ISP External (Lenders & TIAP) Lender s panel TIAP Aspects Collecting data and information to have preliminary findings on the progress of activities Review the targets of activities to identify the problems and challenges Monitor the progress of stated results and commitment and formulate recommendation Review the progress and achievement of activities. Formulate refinement and adaptation to actual context Evaluate the consistency on achieving the ISP document Goals and having third party input Measure the performance of overall programs, identify major challenges, and conduct strategic adjustment and changes if necessary Identify the achievement of the chain of results, evaluate overall performance, formulate the way forward based on achievement and performance Review progress and M&E reports with the field management and the program development group and flagging of issues needing follow up. Development and maintenance of a grievance tracking and response system. Coordination with the M&E team including facilitation of fieldwork, access to progress and formal M&E reports, filling of reports, etc. 142.Tangguh LNG will prepare annual progress reports that consist of Summary progress in the context of the overall program, including all inputs and key outputs attained during the year

37 Discuss challenges and issues pertaining to program delivery and outcomes, and, where appropriate, describe actions for changes Present an annual implementation plan for the following year including alternative actions, input to program budgets, etc. The budget realization data after the implementation of the program each year, upon verification by BPMIGAS and after going through the annual audit process, will be reported to the lenders/adb as part of Tangguh LNG s monitoring report and reviewed in External Panel s audit report, and such report will be made available to the public. The budget realization data will include a comparison of original budget and actual expenses in the previous year External M&E will be conducted by an External Panel comprising recognized social development experts. They will be contracted to provide objective periodic assessments of the ISP program implementation, program outcomes and impacts, and to verify progress with the ISP. Activities of the external team will include: Review internal data collection and progress reporting procedures so as to identify any areas of non-compliance, recurrent problems, or potentially disadvantaged groups or households. Review of grievance records for evidence of poor performance in resettlement implementation. Discussion with Tangguh LNG ISP staff responsible for program delivery. Interview a cross-section of affected households to gauge the extent to which the project has affected living standards and/or livelihoods. Whether or not they have been enhanced as a result of programs. Assessment of overall compliance with project commitment including a review of the annual budget and budget realization data. Project mid-term review during the latter half of Year 3 of the ISP implementation. Assessment of the significance of changes in the project s political and socio-economic environment. Key Competencies and Organization 144. Based on ISP-1 experiences, adaptation to local context is unavoidable and is a critical factor for meeting the intended result. Organization structure to implement ISP- 1 during experienced several adjustments. The most influential aspect of implementing the ISP is competencies. Having necessary competencies will contribute significantly to the success of ISP The implementation of ISP-2 requires several specific competencies for Tangguh LNG management. The organization of the competencies can be categorized into two main groups namely Program related competencies. These competencies are required to ensure the effectiveness of program implementation. Cross cutting competencies. These competencies are required in all programs and ensure synergy among programs Details of the competencies are described as follows: Governance Communication & External Affairs Community Health Education & Training Livelihood Table 12: Competencies for ISP Program Related Competencies o Public policy and legal drafting o Community based security o Good governance o Communication strategy & Participatory approach o Social mobilization & marketing o Indigenous people and vulnerable group empowerment o Community health strategy o Tropical disease and sexually transmitted diseases o Vocational education o Education management o Small business development o Sustainable livelihood 147. There are three processes to ensure that ISP-2 will be supported by necessary competencies of the management. Developing competency of existing human resources. It can be done by conducting competency assessments and followed by competency development. Recruiting new competencies for unforeseen competencies needs Outsourcing the competencies for limited periods of time while developing internal competencies The decision for choosing the alternatives should be based on the competencies assessments and availability of internal and local resources. Cross-Cutting Competencies Capacity and institutional development Poverty and gender mainstreaming Project management Stakeholder engagement and networking Cultural sensitivity/ Multi cultural management 149. The organization design for implementing ISP will consists of three management groups which are program management group covering governance, health, education, and livelihood program, area management group comprise of several facilitating teams, and supporting management group providing communication, administration and financial assistance to the organization. Each management group will lead by a coordinator reporting to ISP team leader. ISP team leader report directly to Communication and External Affairs (C&EA) manager and through him/her report to Country Head

38 Figure: 10. Organization Structure Supporting Function Coordinator Budget Composition 150. The budget of ISP-2 will cover five programs and the projected budget composition for the next 5 years is shown in Figure 11. However, this is expected to be reassessed on an annual basis as the budget composition of ISP-2 will be determined by several factors, namely, the progress of local development, the contribution of local stakeholders, and the existence of similar and related programs conducted by government and other companies. It is the intention of ISP-2 to develop collaboration among likeminded parties to share commitment, responsibilities, and budget. Tangguh LNG committed itself to provide necessary resources to implement ISP-2. By considering the growing contribution of local stakeholder especially local government, it is expected that the total annual budget will slightly decrease in the following years Since Tangguh LNG has already entered production phase, the budget allocation for operations including the budget for social programs in this ISP-2 is part of Operational Expenditures which are 75

39 reviewed and approved by BPMIGAS in the annual Working Program and Budget (WP&B) process. ISP-2 financing is part of AMDAL commitment; therefore, we believe that BPMIGAS will continue their ongoing support through WP&B process. Provision of adequate resources will contribute to sustainable operation and intended social impact and it is in the interest of the key stakeholders including national and local government, BP MIGAS, Tangguh LNG management, and local community For the first year of ISP-2 implementation in 2011, more than 50% of the budget will be used for governance program (25.2%) and education & training program (26.3%). The rest of the budget will be used for health program (21.1%), livelihood program (11.1%), and C&EA program (16.1%). Figure 11. Budget Composition for Governance Community Health Education & Training Livelihood C&EA Figure 12. Budget Composition in 2011 Governance Community Health Education & Training Livelihood C&EA 76 77

40 Annex 1 Table 13: Operation Activities and their Impacts as Stated in AMDAL o Public order o Project security disturbance potential o Public order General Activities of Operation Gas Exploitation Activities Gas Transmission Activities Specific Activities Gas exploitation and operation Safety Exclusion Zone Significant Negative Impact o Cooperation, conflict, and adjustment among the local people and between the local people and the project. o Security Fishing areas Significant Positive Impact Tax payments (national) Solid waste disposal Liquid water disposal Water supply Local community o Population growth and density o Migration o Public and social facilities o Ownership of communal resources o Cultural heritage o Prevalent diseases Public Health Public Health Public Health o Land value o Education o Cultural heritage o Public health o Prevalent diseases LNG Plant Activities LNG Marketing o Income distribution o Social status of education o Public attitude and perception towards project Province and Regency o Tax payments o Gross domestic product o Export value o Foreign exchange earnings o Economic development centres Local o Unemployment rate o Family income level and pattern o Employment and business opportunities o Income distribution o Public and social facilities o Social status of education & occupation o Public attitude and perception toward project o Public health o Prevalent diseases Illegal settlement/ Shifting cultivation o Population growth and density o Migration o Forest concessions o Natural resources utilization o Land value o Social cooperation, conflict, and adjustment o Assimilation and integration o Security o Project security disturbance potential o Public order Sea Port Activities Tug boat operation o Fishing areas o Shipping routes Labour recruitment Public attitude and perception towards project Public attitude and perception towards project Resettlement Activities Resettlement of Tanah Merah Village o Population growth and density o Migration o Family income level o Family income patterns o Cultural heritage o Public attitude and perception toward project o Project security disturbance potential o Unemployment rate o Family income level o Family income patterns o Cultural heritage o Public attitude and perception towards project 78 79

41 Annex 2 Objective Table 14: Description and Key Performance Indicator for Governance Program Description Contribution to the improvement of governance of government and civil society in accordance with transparency, accountability, and participation principles. Desired Outcomes 1. Improved performance based development planning and budgeting by government through integrated, participative, and representative process. 2. Improved public services on health, education, and public administration through transparent and accountable management. 3. Increased awareness by governments and communities in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages about the impacts of in-migration, and improved ability to manage it. 4. Improved participation of civil society in oversight of socio-economic development process and security management of Tangguh operation (ICBS) Key outputs Key Performance Indicators Availability of mechanism to improve the implementation of transparency, accountability, and participation principles. Evidence of good governance practices Performance level in national development planning (musrenbangnas) through integrated, participative, and representative process across different offices and layers of government Performance level of local government budgeting Performance level of minimum service standard for public services on health, education, and public administration 2.2. Evidence of transparency and accountability in delivering public services 3.1. Evidence of village government policy on in-migration 3.2. Evidence of functioning demographic administration system (SIAK) in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages Frequency of report/publication by community on development activities 4.2. Frequency of security incidents related to Tangguh operation 4.3. Involvement level of community in ICBS related activities. 1.5 Strengthened local government agencies (dinas/skpd) to conduct governance and change behavior related capacity building Local community involvement in the development process. 2.1 Assisted public service management to improve transparency and accountability policy and system. 2.2 Trained senior officers and frontliners of local government s agency to provide better public services. 2.3 Availability of public service performance indicators 3.1. Support for government officials in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages to implement in-migration management system Improved community awareness of inmigration impacts. 4.1 Facilitated civil society forums (seminar, workshop, FGD, etc) to oversee socio economic development at province and regency level Well-functioning ICBS forum to promote community based security in DAVs Increased awareness of local key security stakeholder of the need to respect human rights Number of trained local government senior officers Evidence of training modules and manuals Evidence of community involvement in planning, implementation, and oversight in DAVs Evidence of integrated planning process between CAP and Musrenbangdes in DAVs Evidence of written policy and system on transparency and accountability Number of trained senior officers and front-liners Number of survey reports regarding public service performance indicators at regency, district, and village level Number of assisted government officials to develop and implement in-migration policies Number of in-migration related disputes Number of civil society forums Number of printed and electronic publications (books, reports, bulletins, articles, academic papers, radio, interactive dialogue, etc) relate to socio economic development at province and regency level Number of ICBS forum meetings Number of meetings on law enforcement and legal system through ICBS forum Number of trained legal enforcers (police, military personnel) Percentage of trained local security officers on human rights at Tangguh LNG facilities. 1.1 Trained government officials on development planning through integrated, participative, and representative process. 1.2 Trained government officials on the development of performance based budgeting through integrated, participative, and representative process 1.3 Trained government officials and local key stakeholders on basic knowledge of the oil & gas industry, and of the revenue distribution mechanism relate to Papua Special Autonomy Law (UU Otsus Papua). 1.4 Policy draft on implementation of development planning and performance based budgeting (ABK) Number of trained government officials at regency level Number of trained government officials and local leaders at district and village level Number of trained government officials at regency level Number of trained government officials at district and village level Number of trained key stakeholders (government officials, member of parliament, media, and local leaders) at province and regency level Evidence of policy draft related to performance based budgeting 80 81

42 Annex 3 Objective Description Table 15: Description and Performance Indicator for Communication & External Affairs Program Key Performance Indicators 2.3. Availability of Tangguh & BP Indonesia communication materials (video, multimedia, etc) Support for tribal groups in DAVs to document their culture Support for local arts events Numbers and types of communication materials Availability of local culture documents (various printed media, electronic/non electronic media) Number of local arts events supported. Promotion of mutual respect and constructive relationship between Tangguh LNG and its local stakeholders in Papua. Evidence of constructive relationship. Decreased number of conflicts between Tangguh LNG and local stakeholders Desired Outcomes 1. Improved communication and collaboration with local stakeholders to promote the stable operation of Tangguh LNG. 2. Improved awareness of local stakeholders of benefits of the Tangguh LNG presence. 3. Revitalized local cultural values of tribal groups in DAVs. 1.1 Evidence of regular communication and collaboration activities to promote stable operation of Tangguh LNG Evidence of functioning grievance mechanism Decreasing number of complaints on Tangguh LNG operation Reduced number of non factual negative media reports and negative public statements by government officials Availability of publications on local cultural values Increased number of public activities relate to local culture. Key outputs 1.1 Regular communication with local key stakeholders (community, government, CSO, media) to update them on the Tangguh LNG operation. 1.2 Improved partnership with local stakeholders in development programs/ activities. 1.3 Well-functioning local stakeholder forum. 2.1 Updated information on socio-economic benefits of Tangguh LNG presence (employment, economic opportunities, healthcare, education, tax and revenue, etc) to key stakeholders Information about Tangguh LNGsupported local initiatives on community radio Availability of Kabar Dari Teluk (Kadate) monthly bulletin (hard copy and information board) Updated information on certain issues/activities available on Tangguh information boards at DAVs Evidence of regular meetings between Tangguh and key stakeholders at villages, districts, regency, province, and national level Evidence of events organized in partnership with local stakeholders Strengthened and well functioned Dimaga Foundation and YPTB Foundation Evidence of stakeholder meetings (including security) Evidence of communication products (kabar dari teluk bulletin, Tangguh information board, public service announcement), meetings, and events (exhibition, etc) Number of supported initiatives 82 83

43 Annex 4 Objective Table 16: Description and Performance Indicator for Community Health Program Description Supporting local government and local community to improve health quality and accessibility of health services. Desired Outcomes Key Performance Indicators Morbidity rate of local community Supported households having clean water access in DAVs Support for local households to build their own toilets Support for provision of primary health service providers in each village 4.2. Support for improvement of existing primary health service providers regarding the quality and training of medical personnel Percentage of households with clean water access Percentage of local households have toilet Percentage of toilet utilization Number of villages with direct access to primary health service providers Percentage of trained medical personals Ratio of medical doctors and midwifes available in primary health service providers 1. Reduced incidence of malaria, diarrhea, HIV/ AIDS, TB in DAVs. 2. Improved quality of mother and child health in DAVs 3. Improved quality and access of clean water and improved awareness and practices regarding environmental sanitation 4. Improved accessibility and quality of primary health service providers 1.1.Malaria, TB, diarrhea morbidity rate in DAVs 1.2.Level of awareness of HIV/AIDS in Bintuni and Fakfak 2.1.Maternal mortality rate and Infant mortality rate 2.2.Percentage of birth delivery by skilled midwifes 2.3. Percentage of complete immunization for infants and mothers 3.1. Percentage of households with access to clean water Percentage of households with availability of clean water all year round 3.3. Percentage of households with access to and utilization of toilet 4.1. Percentage of treatment seeking behavior Ratio of midwives to villages 4.3. Ratio of primary health service providers to number of villages Key outputs 1.1. Maintained malaria surveillance program including screening, early diagnosis, and prompt treatment 1.2. Improved personal hygiene among local people through CLTS (community led total sanitation) and CTPS (cuci tangan pakai sabun) and improved and appropriate diarrhea treatment as stated in the guideline Improved active TB case identification through health cadres and field facilitators, followed by proper and complete treatment Improved awareness among local people about HIV/AIDS 2.1 Improved service quality of Posyandu regarding nutrition status and immunization coverage Improved service quality of Posbumil regarding ante natal care Socialized clean water processing method in DAVs Level of MoPI (monthly parasite incidence) Percentage of area and population coverage Percentage of personal hygiene improvement among local people Percentage of diarrhea patients received guided treatment Number of TB cases among local community Percentage of successful treatment Number of attendance to STI (sexually transmitted infection) clinic Percentage of identified STI cases Ratio of attendance to posyandu (D/S), and weight of infant (N/S) Percentage of coverage of complete immunization Percentage of pregnant women attendance and have complete ante natal care (K1 and K4) Area coverage of socialization

44 Annex 5 Table 17: Description and Performance Indicator for Education & Training Program Annex 6 Table 18: Description and Performance Indicator for Livelihood Program Description Key Performance Indicators Description Key Performance Indicators Objective Objective Supporting local government and local community efforts to achieve an educated and skilled local population. Desired Outcomes Percentage of educated local population. Percentage of skilled population in DAvs. Improving capacity of households in local community to create diversified and sustainable income sources, and empowerment of indigenous Papuan contractors to be competitive. Level of household assets, income, and purchasing parity in DAVs Number of household productive economic activities. Number of indigenous Papuan contractor participating in industry s supply chain in Papua. 1. Full implementation of national education system by local government. 2. Improved attendance of school age children to available education institution. 3. Availability of skilled local people especially indigenous people and women. Key outputs 1.1 Local education institutions are improved to meet education minimum service standard (SPM) in Teluk Bintuni. 1.2 Local officers of local education offices are trained in the education quality standard and national education system. 2.1 Improved access to education for school age children from area with limited access 2.2 Local key stakeholders, especially school committees, are motivated to support student attendance in school. 2.3 Improved awareness development among children and parents of the benefits of better education Local people, especially indigenous people and women, are attracted to take part in related vocational trainings Existing farmers, fishermen, and business owners increase their skills through livelihood related vocational trainings Local organizations are supported to become vocational training providers 1. Evidence of implementation of national education system by local government. 2. Schooling time and attendance rate 3. Percentage of skilled population especially among indigenous people and women in DAVs Principals and teachers in selected schools are certified Defined roles and responsibility (tupoksi) in education agency Implemented EMIS (education management information system) in selected schools Number of trained education officers of local government Percentage of school age children in DAVs completed senior high school Level of student attendance in schools Percentage of school age children attends school Number of local people especially indigenous people and women participated in vocational trainings Percentage of up-skilled farmers, fishermen, and small business owner Number of facilitated local organizations. Desired Outcomes 1. Added value to the existing livelihoods through production process improvement and product development. 2. Diversified household livelihoods by family members especially women. 3. Improved access of local community and indigenous Papuan contractors to economic resources including market, financial services, and business related information. Key outputs 1.1 The development of local products and the improvement of their quality. 1.2 The promotion of village based agriculture and/or fisheries products and supported by adequate production equipments and materials. 2.1 Facilitation of business skill development for family member especially women. 2.2 Provision of support to family members, especially women, to develop business activities. 3.1 The mapping of economic resources in DAVs. 3.2 Support for the creation of sustainable financial services to support business development through financial institutions. 3.3 Support for wider market access and fair trade for local product through trading house. 3.4 Support for sustainable and relevant information access for local economic players Income level resulting from productive economic activities Accessibility of economic resources to local people Number of new livelihoods conducted by family members Number of women involved in livelihood activities Accessibility of market and business opportunities to local community and indigenous Papuan contractors Number and value of financial transactions by local community and indigenous Papuan contractors Number of training and facilitation on production process and quality improvement Number of quality improved local products Number of DAV villages that having main products Availability and accessibility level of production equipments and materials in villages Number of family member especially women that acquired business skills Number of family member especially women that facilitated Evidence of business facilitation process Evidence of economic resource map Number of local business that access financial services Number of financial transaction and outstanding credit Local product absorption level through wider market access and fairer trade Number of local business that using trading house services Number of local economic players that using market and business information

45 Annex 7 Table 19: Annual Plan Form Program: Date: (agreed on) Period: (month/year month/year) Officer: Manager: Total Budget: Goal (ISP-2) Outcomes (ISP-2) Key outputs (ISP-2) Activities (project detail, beneficiaries, site) Milestones /Targets Q1 Q2 Q3 Q4 Budget Notes (PIC, implementing agency) 88 89

46 Annex 8 Table 20: Annual Activities Budget Project: Budget Period: Budget Currency: Total Budget: Code All figures in USD Unit Unit Cost Quantity Total Cost Notes TOTAL Annex 9 Table 21: Monitoring Form Project: PIC: Manager: Monitoring Period: People who conduct monitoring: Date of Monitoring: Activities Planned (Milestone / Target) Actual (Achievement) Explanation Recommendation for Improvement Activities A Activities B Activities K Activities Y 90 91

47 Annex 10 Table 22: Governance Program in 2011 Objective Outcomes Outputs Activities Contribution to the improvement of governance of government and civil society in accordance with transparency, accountability, and participation principles. 1. Improved performance based development planning and budgeting by government through integrated, participative, and representative process 1.1 Trained government officials on development planning through integrated, participative, and representative process 1.2 Trained government officials on the development of performance based budgeting through integrated, participative, and representative process 1.3 Trained government officials and local key stakeholders on basic knowledge of the oil & gas industry, and of the revenue distribution mechanism relate to Papua Special Autonomy Law (UU Otsus Papua) 1.4 Policy draft on implementation of development planning and performance based budgeting (ABK) 1.5 Strengthened local government agencies (dinas/skpd) to conduct governance related capacity building and change behavior training 1.6 Local community involvement in the development process Training and facilitation for staffs of 6 government offices and local planning agency in Teluk Bintuni Regency on strategic plan and working plan Capacity building for staffs of government offices and local planning agency in Teluk Bintuni Regency on budgeting, financial management through workshop, comparative study, and facilitation Workshop on basic knowledge of oil and gas industry and revenue sharing in West Papua Facilitation to Regency Head office on participatory planning and development procedures Capacity building for Teluk Bintuni government agencies on performance management and behavior change Facilitation of multi stakeholder dialogue on local development plan in DAVs. 2. Improved public services on health, education, and public administration through transparent and accountable management. 3. Increased awareness by governments and communities in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages about the impacts of in-migration, and improved ability to manage it. 4. Improved participation of civil society in oversight of socio-economic development process and security management of Tangguh operation (ICBS) 2.1 Assisted public service management to improve transparency and accountability policy and system 2.2 Trained senior officers and front-liners of local government s agency to provide better public services 2.3 Availability of public service performance indicators 3.1 Support for government officials in Tanah Merah, Saengga, Onar Baru, Onar Lama, and Irarutu III villages to implement in-migration management system 3.2 Improved community awareness of in-migration impacts 4.1 Facilitated civil society forums (seminar, workshop, FGD, etc) to oversee socio economic development at province and regency level 4.2 Well-functioning ICBS forum to promote community based security in DAVs 4.3 Increased awareness of local key security stakeholder of the need to respect human rights Facilitation of workshop on good governance for local stakeholder in Bintuni Bay and Fakfak District Support to comparative study of Teluk Bintuni government officers in districts with well managed public services baseline study and governance assessment in West Papua Province, Bintuni Bay and Fakfak Regency Training and facilitation for village government offices on demography administration and SOP in DAVs. Socialization on demography administration and its impact to local community in DAVs through village based campaign and discussion Public consultation at DAVs on local development plan and accountability of the implementation Assessment of potential and capacity of local stakeholder to implement, manage, and mitigate security disturbance at DAVs Training of voluntary principle of security and human rights for Tangguh guards 92 93

48 Annex 11 Table 23: C&EA Program in 2011 Objective Outcomes Outputs Activities 1. Improved communication and collaboration with local stakeholders to promote the stable operation of Tangguh LNG. 1.1 Regular communication with local key stakeholders (community, government, CSO, media) to update them on the Tangguh LNG operation 1.2 Improved partnership with local stakeholders in development programs/activities Regular meeting and consultation with village based stakeholders in DAVs Selected support for local stakeholders to conduct local development process (musrenbangdes) in DAVs Capacity building for IP work in YPTP and Dimaga Foundation 3. Revitalized local cultural values of tribal groups in DAVs. 3.1 Support for tribal groups in DAVs to document their culture 3.2 Support for local arts events Facilitation for IP art & culture documentation and publication in DAVs Facilitation for IP s art & culture events Promotion of mutual respect and constructive relationship between Tangguh LNG and its local stakeholders in West Papua. 2. Improved awareness of local stakeholders of benefits of the Tangguh LNG presence. 1.3 Well-functioning local stakeholder forum 2.1 Updated information on socio-economic benefits of Tangguh LNG presence (employment, economic opportunities, healthcare, education, tax and revenue, etc) to key stakeholders 2.2 Information about Tangguh LNGsupported local initiatives on community radio Capacity building for village based facilitators in DAVs. Publication of magazines and regular updating of information board in villages and other strategic locations in DAVs. Capacity building for community radio organizers in DAVs and Bintuni 2.3 Availability of Tangguh & BP Indonesia communication materials (video, multi-media, etc) Production of Tangguh LNG and Tangguh Community Development Video update (2011) 94 95

49 Annex 12 Annex 13 Table 24: Livelihood Program in 2011 Objective Outcomes Outputs Activities Improving capacity of households in local community to create diversified and sustainable income sources, and empowerment of indigenous Papuan contractors to be competitive 1. Added value to the existing livelihoods through production process improvement and product development. 2. Diversified household livelihoods by family members especially women. 3. Improved access of local community and indigenous Papuan contractors to economic resources including market, financial services, and business related information. 1.1 The development of local products and the improvement of their quality. 1.2 The promotion of village based agriculture and/or fisheries products and supported by adequate production equipments and materials. 2.1 Facilitation of business skill development for family member especially women. 2.2 Provision of support to family members, especially women, to develop business activities. 3.1 The mapping of economic resources in DAVs. 3.2 Support for the creation of sustainable financial services to support business 3.3. More Papuan contractors are able to participate in bidding process and contracts in the province Fisheries and agriculture product development in selected villages (eg. Tofoy and TMB for agriculture; Taroy and Onar for fisheries) Introduction of new crops, techniques, and post harvest product processing, supported by provision of related equipments (eg. Otoweri for new prawn hatching tools) Training on household economy, business and marketing management for women entrepreneurs in DAVs. Developing organization/ cooperative for women in selected DAVs to manage post harvest activities Mapping of local resources especially in shore areas (eg. Babo, TMB, Tofoy, Saengga, Onar, Otoweri, Weriagar, Mogotira, Taroy) Provision of financial support to well managed cooperatives and/ or local financial institutions. 6 candidates already identified. Facilitation of Papuan contractors in management strengthening Table 25: Health Program in 2011 Objective Outcomes Outputs Activities Supporting local government and local community to improve health quality and accessibility of health services. 1. Reduced incidence of malaria, diarrhea, HIV/ AIDS, TB in DAVs 2. Improved quality of mother and child health in DAVs. 1.1 Maintained malaria surveillance program including screening, early diagnosis, and prompt treatment 1.2 Improved personal hygiene among local people through CLTS (community led total sanitation) and CTPS (cuci tangan pakai sabun) and improved and appropriate diarrhea treatment as stated in the guideline 1.3 Improved active TB case identification through health cadres and field facilitators, followed by proper and complete treatment 1.4 Improved awareness among local people about HIV/AIDS 2.1 Improved service quality of Posyandu regarding nutrition status and immunization coverage 2.2 Improved service quality of Posbumil regarding ante natal care Capacity building for local health officers and laboratorians on malaria surveillance related skills in DAVs Social marketing and campaign on CLTS, CTPS, and diarrhea treatment to local communities in DAVs through education institutions and primary health service providers. Capacity building for health cadres and field facilitators to be able conducting surveillance in DAVs HIV education to local community in DAVs Capacity and institutional building for health cadres of Posyandu in DAVs Capacity and institutional building for health cadres of Posbumil in DAVs 96 97

50 3. Improved quality and access of clean water and improved awareness and practices regarding environmental sanitation 4. Improved accessibility and quality of primary health service providers 3.1 Socialized clean water processing method in DAVs 3.2 Supported households having clean water access in DAVs 3.3 Support for local households to build their own toilets 4.1 Support for provision of primary health service providers in each village 4.2 Support for improvement of existing primary health service providers regarding the quality and training of medical personnel Promotion/public campaign of clean water processing method in DAVs Developing pilot project and applied technology of water processing for households in selected DAVs Developing exemplary project and partial support for household in building their own toilets in selected DAVs Provision of partial support for village based primary health service providers based on local assessment in selected DAVs Capacity building for medical personals of primary health service providers on TB and STI in DAVs Annex 14 Table 26: Education & Training Program in 2011 Objective Outcomes Outputs Activities Supporting local government and local community efforts to achieve an educated and skilled local population. 1. Full implementation of national education system by local government 2. Improved attendance of school age children to available education institution. 1.1 Local education institutions are improved to meet education minimum service standard (SPM) in Teluk Bintuni 1.2 Local officers of local education offices are trained in the education quality standard and national education system 2.1 Improved access to education for school age children from area with limited access 2.2 Local key stakeholders, especially school committees, are motivated to support student attendance in school. Contribution to capacity and institutional development to schools in DAVs to meet the standard. Capacity building for local officers on education standard, pedagogy, and school based management in Teluk Bintuni Regency Provision of scholarship to selected potential and qualified students (IP is one of the criteria) Facilitation of regular meetings of school committees to support student attendance in schools in DAVs 2.3 Improved awareness development among children and parents of the benefits of better education. Selected support to school committees in DAVs to promote better education for local students. 3. Availability of skilled local people especially indigenous people and women. 3.1 Local people, especially indigenous people and women, are attracted to take part in related vocational trainings. Livelihood related training developed based on the needs of IP and women in DAVs 98 99

51 3.2 Existing farmers, fishermen, and business owners increase their skills through livelihood related vocational trainings Training on functional literacy in DAVs 3.3 Local organizations are supported to become vocational training providers Selected support to local organizations in Teluk Bintuni Regency to deliver trainings 100

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