INO: West Kalimantan Power Grid Strengthening Project

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Social Monitoring Report

# Semiannual Report July-December 2017

INO: West Kalimantan Power Grid Strengthening

Project

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CURRENCY EQUIVALENTS (as of 1 January 2018)

Currency unit – Indonesian rupiah (Rp) Rp1.00 = $0.0000735943

$1.00 = Rp13,588

NOTE (i) In this report, "$" refers to US dollars.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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PT PLN (PERSERO) UIP KALBAGBGAR

Jl. Letjend Suprapto No. 50 G, Pontianak

Kalimantan Barat

Strengthening West Kalimantan Power Grid

Project

SOCIAL MONITORING

Semi Annual Report

July

– December 2017

ADB Loan No.3015-INO AFD Loan No :CID102401B

Submitted by: PT PLN (Persero) January 2018

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Project Implementation Strengthening West Kalimantan Power Grid

Project

ADB Loan No.3015-INO and AFD Loan No.CID 1024 01B

Social Semi annual Report

July 01, 2017 to December 31, 2017

Submitted by:

PT PLN (Persero)

January 2018

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Abbreviations

ADB Asian Development Bank

AFD Agence Francaise de Développment

AP Affected Person

BPHP

Balai Pengelolaan Hutan Produksi (Production

Forest Management Center)

BPDAS

Balai Pengelola Daerah Aliran Air (Watershed

Management Center)

BPN Badan Pertanahan Nasiona/ (National Land Agency)

DIR DASHL

Direktorat Derah Aliran Sungai dan Hutan Lindung

Directorate of Watershed and Protected Forest)

EMA External Monitoring Agency

FGD Focus Group Discussions

HH Household

IDR, Rp. Indonesian Rupiah

IOL Inventory Of Losses

IP Indigenous People

IR Involuntary Resettlement

LAC Land Acquisition Committee

MUSPIKA Musyawarah Pimpinan Kecamatan (Board of Subdistrict

Government Leaders)

OPGW Optical Groundwire

PBHTP Biaya Pero/ehan Hak Atas Tanah dan Bangunan (Cost for

the Acquisition of the right Land and/or Buildings)

PIC Project Implementation Consultant

PLN PT Perusahaan Listrik Negara (Persero) (State Owned

Electricity Enterprise)

RCCP Resettlement Customary Communities Plan

RCCDP Resettlement Customary Communities Development Plan

ROW Right-Of-Way

T, T. Tower

TL Transmission Line

TOR Terms of Reference

UPK Unit Pembangunan Konstruksi (Construction Development

Unit)

UIP Unit Induk Pembangkitan (Centra/ Generating Unit)

UPP Unit Pelaksana Proyek

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Weights and Measures

ha hectare

kg kilogram

km kilometer

kV kilovolt

m meter

m² square meter

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NOTE

This social monitoring report is a document of the borrower. The views expressed

herein do not necessarily represent those of ADB's Board of Directors, Management,

or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any

designation of or reference to a particular territory or geographic area in this

document, the Asian Development Bank does not intend to make any judgments as to

the legal or other status of any territory or area.

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Summary

Until December 2017, the progress of each packages are as follow, Package 1 Bengkayang – Jagoibabang transmission line have been energized in January 2016, Package 2 Bengkayang substation have been energized in May 2016. Given the projected delays in the implementation, Package 3 is still in stringing process (31,5%), for Package 4 Ngabang substation has been energized in September 2016, meanwhile for the extension of Tayan substation need to wait for the stringing process to be done. Contracts of new Packages 6, 7 have been awarded in May 2017 and new Package 5 has been awarded in November 2017.

Land acquisitions for tower plots and compensation payments for affected trees in the ROW in Package 1 have been completed. There was no compensation payment for the land use restriction in the ROW. PLN agreed to mitigate the payment gap by providing an Income Restoration and Rehabilitation Program (IRRP) through the Corporate Social Responsibility (CSR) Program to be implemented in the period of June – December 2018. Budget for the program will be provided by PLN corporate Communication Unit (SKOM). Survey and preparation of proposal for the IRRP will be carried out by the HKP-UIP Kalbagtim. Regular coordination meetings among PLN UIP, SKOM, and ADB need to be conducted to ensure timely program implementation.

IRRP for packages 1 and 2 was implemented in October 2017 in the form of distribution of pepper seedlings, fertilizer, farmer equipment, and agricultural training. In Package 3, compensation payment for all 407 tower footprints (279 towers in Bengkayang – Ngabang and 128 towers in Ngabang – Tayan) and RoW clearance has been completed. Complaints raised by people on the compensation payment have been settled and money has been deposited in the court. IRRP for Packages 3 and 4 was implemented in December 2017 in the form of distribution of pepper seedlings, fertilizer, farmer equipment, and agricultural training. The total of 11 affected households participated in this program.

Land acquisition for 150 kV Sekadau substation (2.23ha) and 150 kV Sanggau substation (2.24ha) completed in January and April 2017 respectively, with total amount of land and trees compensation is Rp 12.643.087.410,00. Land for 234 of 235 towers in 150 kV Tayan - Sanggau TL has been acquired and the remaining 1 tower will be completed in January 2018. Land for 115 to 125 towers in 150 kV Sanggau – Sekadau TL has been acquired and the remaining 10 towers need to be completed in March 2018.

Identification of AP and assets for ROW for Tayan-Sanggau-Sekadau is planning to be conducted from February-October 2018. PLN needs to mobilize more resources to ensure timely completion. An appraiser has been hired and ROW appraisal will be conducted in April-December 2018. ROW payment will be conducted from May 2018-February 2019. Territory Hall of Forest Area, Pontianak confirmed there is no tower traversing forest area.

A proposal of IRRP for Packages 5, 6, and 7 (towers) was submitted by UIP Kalbagbar to SKOM in September 2017. The IRRP in the form of chicken husbandry and training will be delivered to the new vulnerable groups and severely AHs for towers in September-October 2018. IRRP for ROW will be implemented in the period of January-March 2019. For all packages, women will be prioritized in the IRRP. Cultural ceremony prior to construction commencement has been done by the contractor at a tower location at each affected village participated by customary leaders, AHs, communities, and village staff.

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This report refers to the IMA phase 2 for 150 kV Bengkayang – Ngabang – Tayan TL that has been submitted in April 2017 and also draft IMA phase 1 for 150 kV Tayan – Sanggau – Sekadau TL and 150/20 kV Sanggau and Sekadau Substations.

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Social Semi Annual Report July – December 2017 1

1. Introduction

1.1 Introduction of Project and Basic Data

The Government of the Republic of Indonesia has signed loan agreements with the Asian Development Bank (ADB) and the Agence Francaise de Dévelopment (AFD) in the amount of US$ 49.5 million each to enable PT Perusahaan Listrik Negara (PLN) to realize the construction of 82 km 275 kV transmission line from the border with Sarawak in East Malaysia to Bengkayang in West Kalimantan, Indonesia, 275/150 kV substation at Bengkayang, 145 km 150 kV transmission line from Bengkayang to Ngabang and Tayan, 150/20 kV substation at Ngabang and extension of 150120 kV Tayan substation. Construction works for the 125 km 275 kV Interconnector were completed on the Sarawak side in October 2015, and for the first circuit on West Kalimantan side on 30 December 2015; the second circuit was completed on 23 March 2016. The first circuit of the 275 kV Interconnector and Bengkayang substation were energized on 20 January 2016, and the second circuit was energized on 19 May 2016. Since the start of supply PLN imports 50 to 100 MW of electricity produced by hydro power plants in neighbouring Sarawak at a much lower cost than generated by PLN's own diesel and oil fired power plants in West Kalimantan. The import of electricity is scheduled to increase during peak load periods up to 230 MW. The signed power exchange agreement allows power trade between West Kalimantan and Sarawak for 20 years.

Due to the remaining loan, it was decided to adding 3 packages of work including construction of 150/20 kV substations in Sanggau and Sekadau, 150 kV Tayan – Sanggau transmission lines and 150 kV Sanggau – Sekadau transmission lines. The 150 kV Tayan – Sanggau –Sekadau will be built as extension of West Kalimantan Power Grid Strengthening Project (275 kV Jagoibabang – Bengkayang transmission line and 150 kV Bengkayang – Ngabang – Tayan transmission line). PT PLN (Persero) has assigned PT PLN (Persero) PUSMANKON to carry out the monitoring of resettlement and community development with regard to compliance to the Resettlement Customary Communities Plan (RCCP) for the 150 kV transmission line and associated substation, and Resettlement Customary Communities Development Plan (RCCDP) for the 275 kV transmission line and associated substation.

The present report shows the progress of land acquisition, social and vulnerability issues during the construction for the period from July 1st, 2017, to December 31th , 2017.

1.2 Project Scope

The project comprises of design, supply, installation, testing, and commissioning of the following works and associated Substations in West Kalimantan Strengthening Project. The project is divided by seven packages that can be seen in Table 1.

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Table 1. Summary of subprojects – Description by Region and Corresponding Social Safeguard Document

Package

No Project Name

Length/

Width District Type of Works

Safeguard Document 1 275 kV TL Bengkayang to Jagoibabang 82 km Bengkayang Construction double transmission line between Bengkayang and Sarawak, East Malaysia Updated RCCDP August 2013 2 275/150 kV Bengkayang SS Bengkayang Construction of the substation Updated RCCDP August 2013 3 150 kV TL Bengkayang-Ngabang- Tayan 142.46 km Bengkayang Landak Construction of towers, foundation, and erection tower

Updated RCCP March 2014

4 150 kV Ngabang

and Ext. Tayan Landak

Construction of transmission line Updated RCCP March 2014 5 Sanggau-Sekadau SS 1.535 ha 1.37 ha Sanggau Sekadau Construction of substation RCCP August 2016 6 TL Tayan-Sanggau 48,3 ha Sanggau Construction of transmission line RCCP August 2016 7 TL Sanggau-Sekadau 27.997 ha Sanggau Sekadau Construction of transmission line RCCP August 2016

1.3 Project Location

The project is located on the Indonesian part of Borneo Island in West Kalimantan in three districts Bengkayang, Landak, Sanggau, and Sekadau.

The West Kalimantan Power Grid Strengthening Project is presented on Map 1.

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1.4 Project Administration

The re-organization of PLN resulted in changes of PLN's project administration. The implementation of the project now is managed by PT PLN (Persero) Unit Induk Pembangunan KALBAGBAR (UIP KBB) located in the offices of PLN in Pontianak (formerly UIP X in Balikpapan) and Unit Pelaksana Proyek Kitring KALBAGBAR 3 (UPP KItring Kalbagbar 3) at PLN's site office in Singkawang (formerly UPK 5 in Bengkayang). This unit is providing the construction for package 1 (Bengkayang – Jagoibabang transmission line), package 2 (Bengkayang Substation), package 3 (Bengkayang – Ngabang – Tayan transmission line), and package 4 (Ngabang and Extension Tayan Substation) and Unit Pelaksana Proyek KALBAGBAR 2 (UPP KBB Kitring 2) located in Sintang is providing the construction for package 5 to 7 (Tayan- Sanggau – Sekadau transmission line and associated substations) .The organization charts of PLN UIP KBB and UPP KBB 3 are shown in Attachment 1. PLN is supported by the Project Implementation Consultant (PIC) whose organization chart is shown in Attachment 1 too.

Due to the remaining loan, it was decided to use the remaining loan by adding 3 packages of work including construction. The project implementation is managed by PT PLN (Persero) Unit Induk Pembangunan (UIP KBB) located in the PLN offices in Pontianak and Unit Pelaksana Proyek Kitring KALBAGBAR 2 (UPP KBB 2) at PLN site offices in Sintang. This unit is provide the monitoring of the Land Acquisition progress, social and vulnerability issues is carried out by the PIC's Social and Resettlement Specialist and in cooperation with PLN and the contractors to ensure that accurate data are provided and social issues are properly resolved under consideration of local customary.

2. Resettlement, Community Customary and Social Issues

2.1 General Description

This report for the period July to December 2017states the social aspects of the implementation progress of the West Kalimantan Power Grid Strengthening Project. This report includes: a) an update of land acquisition implementation by PT PLN (Persero) UPP Kitring KBB 2 (formerly PT PLN (Persero) UPK RING KAL 1) of the approved RCCP 150 kV Transmission Line Project; b) a compilation of Social Issues emerged from the land acquisition and resettlement implementation by PLN UPP KBB 2 as well as the ones developed during civil works implementation and how those have been mitigated; c) progress of Capacity Building services provided by PT PLN (Persero) PUSMANKON to PLN and contractors; and d) action plan to further improve project implementation and monitoring to meet the project policy and compliance with RCCDP and RCCP.

PT PLN (Persero) as the Project Executing Agency is responsible for the implementation of the land acquisition and resettlement plan, i.e. Resettlement Customary Communities Development Plan (RCCDP) for 275 kV Bengkayang - Jagoibabang Transmission Line and Resettlement Customary Communities Plan (RCCP) for 150 kV Bengkayang - Ngabang - Tayan Transmission Line , and 150 kV Tayan – Sanggau – Sekadau Transmission Line. The associated substations are covered in the RCCDP and RCCP too.

As refer to RCCP for Tayan – Sanggau – Sekadau, total land area to be acquired for 2 new substations is 29,050 m2 and affected 2 HH, for tower bases (excluding total land needed to construct 14 tower bases located in the forest area) is 76.275 m2 and affected 297 HH. 150 kV transmission line RoW requires 20 m wide (10 m +10 m) along 71.13 km of the transmission line

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route from Tayan-Sanggau and along 77.29 km route from Sanggau to Sekadau. The total area of 2,968,400 m2 of the land under the ROW will be affected by the project and some restrictions on the use of the land and building, for instance to grow high standing trees and building, will be applied.

The acquisition of the land required for the bases tower of the Tayan – Sanggau – Sekadau transmission line and associated substations , PLN has established an internal land acquisition team under PT PLN (Persero) Unit Induk Pembangunan (UIP KBB) and Unit Pelaksana Proyek Kitring KALBAGBAR 2 (UPP KBB 2). This internal land acquisition team has been tasked also to conduct inventory of losses for the Right-of-Way (ROW) of the 150 kV transmission line corridor, i.e. identify trees and assets affected by the construction works and compensate landowners for loss of land, trees, plants and assets.

The potential impact by the construction of transmission lines concern temporary access roads, permanent land acquisition, and restricted use of land and clearance of trees within ROW corridor. The construction of the transmission line also has positive impacts to the landowners and communities located near the project area such as:

1) Affected households receive cash compensation payments which can be used for reinvestment and needs of family life;

2) Creation of employment opportunities for the local people during land clearing and civil works as well as in the period of construction depending on individual's capabilities; 3) Opportunity for local entrepreneurs to supply building materials and other services during

construction and post construction e.g. maintenance.

Implementation of the Resettlement Customary Communities Development Plan (RCCDP) for the 275 kV Bengkayang - Jagoibabang Transmission Line and Resettlement Customary Communities Plan (RCCP) for the 150 kV Bengkayang - Ngabang - Tayan Transmission Line including the associated substations requires monitoring. PLN UIP KALBAGTIM (formerly as UIP X) has awarded a contract for monitoring of the implementation of RCCDP and RCCP to the independent monitoring agency (IMA), PT. Data Persada Consultant. The IMA shall provide external monitoring reports to PLN UIP KALBAGTIM and PLN Head Office/PT PLN (Persero) for any follow up actions required minimizing negative impacts of the RCCDP and RCCP implementation. The draft of the IMA report was issued in April 2015 and the Final Report was submitted to PLN in September 2015. On beginning of 2017, IMA has started to conduct second monitoring that focused along the corridor of ROW for 275 kV and 150 kV. By the end March 2017 the draft report of IMA for corridor 150 kV (Bengkayang - Ngabang- Tayan) has been submitted to PLN.

PIC's Social Specialist assists the project to meet ADB's Involuntary Resettlement (IR) policy requirements in delivering land acquisition and resettlement of the West Kalimantan Power Grid Strengthening Project. The PIC's Social Specialist worked together with PLN UPP Kitring KBB 2 and the contractors to strengthen the project implementation process and solve social issues caused by the construction works.

Several activities were conducted in the period of July – December 2017. Those activities include capacity building and awareness to the contractors on the project compensation policy, social issues identification, mitigation strategy, as well as a general orientation on local wisdom and customary institutions relevant to project implementation. On site monitoring was conducted in some critical areas in which social issues were reported. Most social issues originated from the contractors' activities such as material transport, access road, cutting trees and local

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empowerment. The contractors' made good efforts to resolve social issues by coordinating with head of village and youth leader. With strong leadership of the PLN UPP Kitring KBB 2 internal land acquisition team, most of the issues raised have been solved in the meantime. The contractors have adapted lessons learnt from PLN UPP Kitring KBB 2 land acquisition team and used them to mitigate the issues raised during the construction activities.

2.2 Contractors’ construction activities for transmission lines and substations

The scope of works comprise of excavation, construction of foundations for the tower bases, tower erection, and stringing of conductors and OPGW. PT. Bukaka Teknik Utama is the contractor for the 275 kV Transmission Line from Bengkayang substation to Jagoibabang (Package 1) and CG Consortium is the contractor for the construction of the 275/150 kV Bengkayang substation (Package 2). The consortium of KEC and Mitsubishi Corporation for the construction of the 150 kV Bengkayang - Ngabang - Tayan Transmission Line (Package 3) and for 150/20 kV Tayan extension and Ngabang substation (Package 4). The construction of Sanggau and Sekadau Substation (Package 5) is undertaken by PT. Siemens Indonesia Consortium. Consortium of PT Krakatau Engineering and PT Citramas Heavy Industries is the contractor for construction of 150 kV Tayan-Sanggau transmission line (Package 6) and 150 kV Sanggau-Sekadau transmission line (Package 7).

For implementation of construction contractors need to recruit both locally and fr om other areas of Indonesia. Local labors recruited from nearby villages and/or hamlets traversed by the transmission lines. The labor recruitments usually involved local leaders and/or village/hamlet heads to propose and select suitable workers for earth and civil works, and transport of materials to the tower locations.

Temporary access roads are required for transport of materials for civil works activities and erection of towers, as well as for stringing of conductors. In case of damage to trees/crops the contractors have to pay compensation to the owners of land and vegetation.

3. RCCDP and RCCP Implementation Progress

PLN has updated the Resettlement Customary Communities Development Plan (RCCDP) for the 275 kV Transmission Line of the Strengthening West Kalimantan Power Grid Project in August 2013. The updated RCCDP covers 82 km 275 kV Transmission Line from 275/150 kV Bengkayang Substation to the border with Sarawak at Jagoibabang. This updated RCCDP for the 275 kV transmission line also includes due diligence for the land purchased by PLN prior to the ADB approval of the RCCDP. The total number of transmission line towers of the 275 kV Bengkayang- Jagoibabang transmission line is 201.

Following the RCCDP and RCCP approval, PLN UPK 5 internal land acquisition team continued acquisition of the remaining land for tower sites. It is reported that the land acquisition for the remaining tower sites of the 275 kV Bengkayang - Jagoibabang Transmission Line is consistent with the updated RCCDP.

In August 2016 PLN submitted the Resettlement and Customary Communities Plan (RCCP) for the 150 kV Tayan – Sanggau – Sekadau Transmission Line route. This RCCP covers the 150 kV Tayan – Sanggau Transmission Line, 150 kV Sanggau – Sekadau Transmission Line, and 150/20kV Sanggau – Sekadau Substations. Following the RCCP approval, PLN UPP KITRING KBB 2 internal land acquisition team continued acquisition of the remaining land for tower sites. It is reported that the land acquisition for the remaining tower sites of the

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150 kV Tayan – Sanggau - Sekadau Transmission Line has deviation, due to change of Sanggau and Sekadau substations location. The number of towers changed from 223 to 235 for 150 kV Tayan – Sanggau transmission line (Package 6) and changed from 135 to 125 towers for 150 kV Sanggau – Sekadau Transmission line (Package 7). The summary of RCCP in the form of leaflets has been posted on all affected village office boards and distributed to affected households, contractors, and other relevant stakeholders in December 2017, sample of leaflet distribution can be seen in Figure 1 and detailed leaflet distribution in several villages is shown in Attachment 2.

Figure 1. Leaflet Distribution to Affected Household of 150 kV Tayan – Sanggau Sekadau TL Key timelines shown in Table 2 are pertinent to note under social safeguards as Project management transitions to more relevant and comprehensive documentation of forthcoming monitoring periods.

Table 2. Key Timelines Associated with Social Safeguards Imperatives for all Packages

No Subject Person in-charge Timeline

Package 1 to 4

1 Implementation of Income Restoration and Rehabilitation Program (IRRP) to mitigate payment gap for land use restriction in Package 1

a. Survey and need assessment b. Preparation of IRRP proposal c. Submission of the proposal from

UIP to SKOM

d. Review and approval by SKOM e. Budget disbursement f. Coordination meetings PLN UIP Kalbagtim PLN UIP PLN UIP PLN UIP SKOM SKOM PLN UIP June-December 2018 a. W2 Dec 2017 – W4 Jan 2018 b. February 2018 c. W1 March 2018 d. W4 April 2018 e. W2 May 2018 f. February, April 2018 2 Implementation of IRRP for vulnerable

and severely AHs for Package 3 and 4

PLN (UIP, Kalbagbar) December 2017 3 Land ownership (certificate) updates for

all packages

PLN (KR-KAL, UIP, UPP)

September 2018 4 Implementation of actions set in the

Forestry Land Use Permit (IPPKH)

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No Subject Person in-charge Timeline

Package 5 to 7

1 a. Update of RCCP

b. Translation of RCCP into Bahasa Indonesia

c. Submission of Updated RCCP to ADB for approval

PLN (UIP, Pusmankon) PLN (UIP, PPT) a. June 2018 b. January 2017 c. June 2018 2 Distribution of leaflets on the summary

of RCCP to the APs and relevant stakeholders

PLN (UIP, UPP, Pusmankon)

W2 – W4 of December 2017

3 Complete compensation payment/land acquisition for tower footprints

a. 1 of 235 tower plots (Tayan-Sanggau)

b. 19 of 125 tower plots (Sanggau-Sekadau)

PLN (UIP, UPP)

a. January 2018 b. March 2018 4 ROW: Identification of affected assets

and land use restriction for ROW. PLN to add more team

PLN (UIP, UPP) Starting by April 2018 5 ROW: Valuation of affected assets by

appraiser for the ROW

PLN UIP June 2018

6 ROW: Compensation payment for the ROW (Tayan-Sanggau-Sekadau)

PLN (UIP, UPP) Starting July 2018

7 Completion of Land ownership update a. SKT b. Certificate PLN (UIP, UPP) a. Completed b. July 2017 – December 2018 8 Income Restoration and Rehabilitation

Program (IRRP) PLN (UIP, Wilayah KalBar) September – October 2018 (tower, substation) January – March 2019 9 Mobilization of PIC social safeguard

specialist PLN UIP/Pusmankon January 2018

10 Mobilization of 2 field social safeguard officers from contractors for Package 6, 7. (Current status: 1 Social Safeguard officer from GA for both packages)

PLN (UIP, PIC) January 2018

11 Submission of External monitoring

report PLN UIP 30 January 2018

3.1 Land Acquisition Procedure and Grievance Process

The land acquisition was undertaken by PLN UPP Kitring KBB 2 in Sintang and PLN UPP Kitring 3 in Singkawang, in collaboration with the local governments. The procedures for land acquisition are as follows:

1) Consultations with relevant stakeholders to inform on the purposes of the project development, potential impacts and land acquisition activities.

2) Identify of land owner and inventory of property and vegetation. 3) Announcement of inventory results (14 working days after)

4) Land valuation based on Public Appraisal Service (Kantor Jasa Penilai Publik, KJPP). 5) Socializations with APs, announcement of compensation

6) Transfer of compensation amount to landowner. 7) Release of land title from the APs to PLN.

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With regard to disputed land parcels, PLN UPP Kitring KBB 2 in Sintang and PLN UPP Kitring KBB 3 in Singkawang also conducted a series of meetings with MUSPIKA and local district government. Documents required to solve such disputes are:

1) A Minutes of Meeting involving owner(s) of disputed land, MUSPIKA and head of Adat. 2) Signed Statement Letter of Dispute from Owner of disputed land

3) Document no 1) and 2) will be sent to PLN UPP Kitring 2 in Sintang and PLN UPP Kitring 3 in Singkawang if agreements have been reached between the owners of disputed land, and compensation payment can be processed.

4) If there is no agreement, the case of the disputed parcels can be brought to Bupati (head of district government) and the Governor of West Kalimantan.

5) If the case of disputed parcels cannot be resolved, PLN may take the case to the court of law for adjudication. These phases also apply for other grievance issues.

These phases also apply for other grievance issues. The mechanism can be seen in

Figure 2.

Figure 2. Project Grievance and Redress Mechanism

3.2 Actual Land Acquisition Issues during This Period

Land acquisition for Package 1 to 4 has been completed. During this period, Land acquisition for Sekadau substation and Sanggau substation completed in January and April 2017 respectively. Land acquisition for 150 kV Tayan – Sanggau - Sekadau - transmission line is in the acquaintances process and has been released in several sub districts. A number of stages are conducted in the process of land acquisition, including socialization to APs.

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Socializations for land acquisition compensation in Sanggau District have been conducted in several times in 2015; in Sekadau District have been conducted in 2017, list of socialization for land acquisition can be seen in Table 3. Socialization was attended by PLN UPP KITRING KBB 2 (formerly UPK RING KAL 1), village officials, military apparatus, police officers, and community representatives.

Generally, in the socialization PLN explained preliminary information about transmission lines related to the length of the lane and the number of tower, the villages to be traversed by transmission lines, free space of vertical and horizontal area for transmission line, land acquisition for tower base and its compensation, clearance of trees or crops and its compensation, the induction magnetic and electric field based on WHO, SNI and Department of Health standards for the transmission line, results of magnetic and electr ic fields measurements for transmission line, also there were question and answer sessions.

Table 3. List of Socializations of Land Acquisition for 150 kV Tayan – Sanggau – Sekadau transmission line

No. District Sub - District Date

1. Sanggau Tayan Hilir October, 12th 2015

2. Sanggau Balai October, 13th 2015

3. Sanggau Tayan Hulu October, 21st 2015

4. Sanggau Parindu October, 16th 2015

5. Sanggau Kapuas October, 20th 2015

6. Sekadau Sekadau Hilir April, 11th 2017

Acknowledgement of its socialization is shown in Attachment 3.

Although a number of stages in land acquisition process have been implemented, there are still remaining obstacles. The several issues during this period related to land acquisition in Tayan – Sanggau – Sekadau Transmission line can be seen in Table.4.

Table 4. Actual Land Acquisition Issues for 150 kV Tayan – Sanggau – Sekadau transmission line

Village Tower Number Number of

Tower Remark

Tayan – Sanggau

Cempedak T.07A 1 tower Land owner has been going abroad

Sanggau - Sekadau

Makkawing T.35 1 tower The tower base location affects a sacred

tree. Tower base will be reallocated

Binjai

T.130R 1 tower

Freehold title is in Bank due to personal loans by the land owner. Communicate with the land owner to use other freehold title.

T.131.R 1 tower Measurement of land area for land

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Village Tower Number Number of

Tower Remark

T.132.R 1 tower Family-owned land issues

T.136R-T.137R 2 towers Land owner is still unknown

T.139 1 tower Measurement of land area for land

certificate T.140R

1 tower Freehold title is in Credit Agency due to personal loans by the land owner. Communicate with the land owner to use other freehold title.

Suka Gerundi T.147R Land owner is still unknown

T.149R Land owner is still unknown

3.3 Income Restoration

Income restoration shall be implemented for APs who have lost their productive base, business, jobs or other income sources, regardless of whether they have lost their house. Based on RCCP and RCCDP, APs identified as severely affected are those people who lose more than 10% of their total productive land/assets, and APs who are categorized as vulnerable include elderly headed households, disabled, landless, Indigenous People (IP), women headed households but not considered poor and severely affected. Income restoration and rehabilitation program will be provided for severely APs by PLN in close consultation with APs.

The income restoration program will be delivered in parallel with payment of compensation, using Corporate Social Responsibility (CSR) program/budget under PLN UIP Kalimantan Bagian Barat. For initial plan, one AH will get training on proper cultivation of pepper and provide good variety of pepper seeds (100 seeds each AH). Women groups will be prioritized to participate in the capacity building activities.

As result of verification from predecessor PIC (Tractebel) of vulnerable affected people at package 1 (Jagoibabang –Bengkayang) is 6 people identified as vulnerable affected people and 2 personidentified as severely affected people in package 2 (Bengkayang substation). 2 of 6vulnerable affected people is very old and cannot work as farmer anymore and the others affected people work as pepper and corn farmer as main income. Detail list of Vulnerable and Affected people in corridor of 275 kV shown in Attachment 4. IRRP for packages 1 and 2 was implemented in October 2017 in the form of distribution of pepper seedlings, fertilizer, farmer equipment, and agricultural training for vulnerable and affected people, report of its implementation shown in Attachment 5. A total of 10 AHs participated in this program and 1 AH refuse to receive help in the form of pepper seeds due to physical condition that is no longer possible, so the grant diverted with a 900 VA power connection (as per beneficiary request). Result of short interview by Tractebel to severely and vulnerable affected people in 150 kV Bengkayang – Ngabang - Tayan is 25 confirmed identified as vulnerable affected people and 0 person confirmed identified as severely affected people. Detail list of Vulnerable and Affected people in corridor of 150 kV shown in Attachment 6. IRRP for package 3 and 4 was implemented on December 22nd_{, 2017. PT PLN (Persero), represented by the Manager of UPP Kitring KBB 3,}

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has hand over Corporate Social Responsibility (CSR) funds in the amount of Rp 110.240.000,- to the affected people in Bengkayang – Ngabang – Tayan. The grants are in the form of distribution of pepper seedlings, fertilizer, farmer equipment, and agricultural training. The total of 11 affected households participated in this program. Remaining affected households will be participated in other CSR program that will be conducted on February 2018. The list of CSR receiver can be seen in the Table 5 below, for more completed data can be seen in the Attachment 7.

Table 5. List of Affected Households Participated in CSR Program for Bengkayang – Ngabang – Tayan

No. Name Village Item CSR

1 Noren Cempedak Pepper seedlings, fertilizer, farmer equipment, and agricultural training 2 Sarum Cempedak

3 Sarsa Mak Awing

4 Annius Bebe Mak Awing

5 Anwar Mak Awing

6 Anggek Temiang Mali

7 L. Hadir Temiang Mali

8 Anyi Temiang Mali

9 Buncang Temiang Mali

10 Darius Acos Tae

11 Eneng Padi Kaye

4. Land Acquisition and Compensation Progress

The main project resettlement principle is to avoid and if that is not possible, to minimize resettlement impacts, and restore the livelihood of all APs at least to their pre-project condition. Compensation for lost land and non-land assets will follow the principle of replacement cost. The compensation progress is performed as described below.

a. 275 kV Bengkayang - Jagoibabang Transmission Line and Bengkayang Substation. In total 201 towers have been acquired by PLN for the implementation of the Bengkayang – Jagoibabang transmission line. Land acquisition was completed on 30 September 2015. The area for 150/20 kV Bengkayang Substations has been gradually developed as dwelling area, thus the substation was moved about 6,5 km south of the original area.

b. 150 kV Bengkayang-Ngabang-Tayan Transmission Line and Ngabang – Tayan Substations.

The 150 kV Bengkayang – Ngabang – Tayan Transmission Line comprise of 280 towers for the Bengkayang – Ngabang section and 128 tower sites for the Ngabang– Tayan section as updated by administrative consolidation, i.e. 408 towers in total. PLN has completed to released land for 408 towers in the 150 kV Bengkayang – Ngabang – Tayan transmission line by the end of December 2016. Several tower site located in the forestry area. The land acquisition for Ngabang

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and Tayan substations has been completed. The payment for package 4 has been done in December 2017.

The needed permit for the forestry area for Bengakayang – Jagoibabang and Bengkayang – Nagabng – Tayan has been issued on January, 16th 2017 by Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal-BPKM) No:6/1/IPPKH/PMDN/2017 as seen in Attachment 18, Implementation of required actions and commitments set in the permit is shown in Table 6 and the supporting data also can be seen in Attachment 18.

Table 6. Status of Required Actions and Commitments Implementation based on Forestry Area Permit

NO RESPONSIBILITY DESCRIPTION

ACTION PLAN GANIS

CANHUT BPHP

DIR

DASHL BPDAS UIP PUSAT

1

Making plans & implementation of reclamation and re-vegetation in forest area

No later than 1 year before the end of the

permit period 2 Watershed Planting rehabilitation *The verification order of prospective locations for rehabilitation of the watershed No: S.86 / PDASHL-KTA / R2PKH / DAS.1 / 8/2017 dated 3rd August 2017 * Indicative map of watershed rehabilitation sites from BPDAS and Kapuas protected forest on 7th June 17 * Conducts consultant procurement for the implementati on of verification-rehabilitation -evaluation of watershed planting

3 PNBP Payment Done annually

Paid on 20/03/201 7 4 Tree Inventory Completed - report submitted to Provincial

Forestry Service & BPHP (dated 8 Sept

2017)

5 PSDH &/DR Payment

Can be executed after point 5

* Based on TC results, IPPKH holders will pay PSDH of 25% from determination of TC result

* Head of the BPHP register the IPPKH holder to the SIPUHH application to obtain access rights. * After submission of the Logging Plan, 75% PSDH payment is made Waiting for the determin ation of PSDH value from BPHP 6 Payment Compensation (If it is a rehabilitation forest ) N/A. Not Rehabilitation Forest 7

Change the cost of invenstation & permit fee to the permit holder

Replacing the cost of the permit that has been issued by 1. PT Nitiyasa Idola 2. PT Sinar Kalbar Raya

because PLN is crossing the company area. Already coordinate d with BPHP, is being asked how the implement ation

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Social Semi Annual Report July – December 2017 13 NO RESPONSIBILITY DESCRIPTION ACTION PLAN GANIS CANHUT BPHP DIR

DASHL BPDAS UIP PUSAT

8 Maintenance of IPPKH

border area

9 Forest protection IPPKH area

In the form: * marking of bulletin boards related to forest protection

* watch tower / guard post / tower / other means

* patrolling with the forest police

10 Secure the forest area

*Lists the names of forest groups * Inverted tower monitor input

* Conduct joint patrols

11 Provide convenience for the apparatus

*Listing where the intended agency * Convey the purpose of the activity * Mention frequency of activity 12 Coordinate environmental activities & forest utilization

13

Empowering

communities around the permit area

Implemented as CSR

14 Make periodic reports

every 6 months

c. Tayan – Sanggau – Sekadau Transmission Line and Sanggau - Sekadau Substations. Land acquisition for Sekadau substation (2.4ha) and Sanggau subst ation (2.2ha) completed in January and April 2017 respectively. Location assignment permissions for 150 kV Sekadau substations is based on Bupati Sekadau decree No.671.32/133/UMUM/2016 dated March,1st 2016, for 150 kV Sanggau substation based on Bupati Sanggau decree No.19 Tahun 2015 dated January,16th_{2015, shown in Attachment 8 and Attachment 9}

respectively. Affected asset acquired for substation include land and trees/crops can be seen in Table 7.

Table 7. Affected Asset Acquired for Sanggau and Sekadau Substation

No. Name of AHs Address Affected

land (m2) Trees/Crops

Total compensation

(Rp)

1. Abang Mokmen

Mungguk Village, Sub District Sekadau Hilir,

District Sekadau

13.203

Rubber, Leban

Meranti, Jengkol, Cempedak, Durian, Mentawak, Rambutan, Pelantan

Setopong, Entawak

Mango, Kepuak, Palm,Pinang

5.754.264.000

2. Hj. Setiban

Mungguk Village, Sub District Sekadau Hilir,

District Sekadau

9.271

Rubber, Cempedak, Mentawak, Durian

Bamboo, Pelasik Jengkol, Kelengkeng

Rambutan, Local wood, Halaban, Asam Bawang, Petai,Mango

3.513.820.100

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No. Name of AHs Address Affected

land (m2) Trees/Crops Total compensation (Rp) 1. Yulia Ani Jl. Simpang Embaong Bunut Village, Kapuas Sub-district, District

Sanggau

10.610

Rubber, Cerucuk, Durian, Star Fruit, Medang, Kampas, Leban, Ubah, Bamboo, Mentawak, Rambutan, Pinang, Sawit, Asam Kalimantan, Cempedak, Petai, HGaharu, Salak, Chocolate, Nyantoh, Asam Kendis, kayu Malam, Tengkawang, Pekawai, Mahang, Jambu Hutan, Pulai

1.580.250.200

2.

Alisius

Jl. Simpang Embaong Bunut Village, Kapuas Sub-district, District

Sanggau

8.280

Rubber, Tengkawang, mahang, Nyantoh, Cempedak, Pulai, Durian, Leban, Kapuak, Cerucuk, Bamboo, Rambutan, Sawit, Medang, Sagu, Kelengkeng, Petai, Peluntan, Embaong, Tekan, Local Wood

1.287.769.110

3. Solisman

Jl. Simpang Embaong Bunut Village, Kapuas Sub-district, District

Sanggau

3.414 Rubber, Cerucuk, Leban 507.020.000

Total Sanggau SS 22.304 m2 3.375.039.310 Total 2 Substations 44.778 12.643.087.410

Location assignment permissions for 150 kV Tayan – Sanggau- Sekadau is based on Bupati Sanggau decree No.250 Tahun 2014, shown in Attachment 10 and Bupati Sekadau decree No.671.32/133/UMUM/2016 dated March,1st_{2016, shown in Attachment 8.}

There is no tower traversing forestry area in both packages, the needed permit has been issued by Territory Hall of Forest Area (Balai Pemantapan Kawasan Hutan Wilayah III), letter No.S396/BPKH.III.2/2015 dated May 13th, 2015, which is can be seen in Attachment 11.

For Tayan – Sanggau transmission line (Package 6), the number of towers changed from 223 to 235 towers due to the change of Sanggau substation locations. Contract amendment to Package 6 is required for 12 additional towers. Land for 234 of 235 towers (99.5%) has been acquired in November 2017 and the remaining 1 tower (0.5%) will be completed in January 2018.

For Sanggau-Sekadau transmission line (Package 7), the number of towers changed from 135 to 125 towers due to the change of Sanggau and Sekadau substation locations. There are 18 towers must be rerouted. Land for 106 to 125 towers (84.8%) has been acquired and the remaining 19 towers (15.2%) need to be completed in March 2018.

Affected Assets Acquired for Tayan - Sanggau - Sekadau Transmission Line up to December 2017 traversing farmland in private and institution ownership as summarize in Table 8. It has been compensated in total amount of Rp. 8,271,472,800,00 as seen in Table 9. An example documentation of land acquisition for tower base in Sanggau – Sekadau Transmission Line, tower number T.190 in The Sebarra Village, Parindu Sub-district, Sanggau District compensated in amount Rp 24.470.000,00, the land owner as affected household was a woman named Petronila , shown in Figure 3.

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Figure 3. Documentation of Land Acquisition Payment for Tower Base in T.190

Table 8. Summary of Affected Land for 150 kV Tayan – Sanggau – Sekadau TL up to December 2017 Section Number of Tower Actual Acquired Owner Occupation of Land Width (m2) Tayan – Sanggau 235 228 Private Farmland 55,616 6 Institution Farmland 3,050 Sanggau -Sekadau 125 101 Private Farmland 28,050 4 Institution Farmland 900 Total 360 339 87,616

Table 9. Affected Assets Acquired for Tayan - Sanggau - Sekadau TL up to December 2017

No. Village Numb er of Tower Acquired Number Width (m2

) Acquired Date Total Compensation

I Sanggau District

Tayan Hilir Sub-district

1. Kawat 1 1 400 17 November 2017 30,443,000

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Social Semi Annual Report July – December 2017 16 No. Village Numb er of Tower Acquired Number Width

(m2) Acquired Date Total Compensation

3. Tebang Benua 12 12 2875 3 October 2016 255,629,500

Balai Sub-district

4. Makkawing 8 8 1975 22 September 2017 218,564,000

5. Temiang Mali 7 7 1750 22 September 2017 177,971,000

6. Hilir 3 3 1025 22 September 2017 101,354,000

7. Kebadu 19 19 4450 26 October 2017 384,667,500

8. Senyabang 14 14 3500 313,944,000

9. Temiang Taba 11 11 3000 18 October 2017 308,617,000

Tayan Hulu Sub-district

10. Menyabo 17 17 4175 11 October 2017 379,636,000

11. Sosok 16 16 4125 11 October 2017 380.415.000

12. Binjai 17 17 4000 11 October 2017 335.578.000

Parindu Sub-district

13. Suka Gerundi 15 15 3550 13 October 2017 326,726,000

14. Palem Jaya 16 16 4175 13 October 2017 387,598,000

15. Pusat Damai 18 18 4350 13 October 2017 445,748,500

16. Sebbara 10 10 2250 13 October 2017 215,250,000

Kapuas Sub-district

17. Lape 15 15 4125 15 November 2017 376,512,000

18. Sei Mawang 9 9 2150 15 November 2017 219,859,500

19. Bunut 5 5 1475 15 November 2017 144,245,000

Total (Tayan-Sanggau) 235 234 58.666 5,454,987,500

Kapuas Sub-district

1. Bunut 11 10 3225 15 November 2017 288,835,000

2. Beringin 12 12 2875 15 November 2017 270,927,500

3. Tanjung Kapuas 5 5 1300 15 November 2017 128,000,000

4. Penyeladi 20 20 4850 15 November 2017 455,771,400

Mukok Sub-district

5. Semuntai 12 12 2875 5 October 2017 200,831,400

II Sekadau District

Sekadau Hilir Sub-district

6. Sei Kunyit 12 12 2875 3 November 2017 246,727,000

7. Peniti 20 20 5025 3 November 2017 519,570,000

8. Ensalang 10 10 2425 3 November 2017 280,315,000

9. Sei Ringin 5 5 1125 3 November 2017 117.975.000

10. Sei Ringin (Re-route) 10 3 1075 132.933.000

11. Mungguk (Re-route) 8 6 1300 174.600.000

Total (Sanggau – Sekadau) 125 115 28.950 2,816,485,300 Total (Tayan – Sanggau –

Sekadau) 360 349 87.616 8,271,472,800

Detailed list of 150 kV Tayan – Sanggau - Sekadau land acquisition monitoring can be seen in Attachment 12.

4.1 Implementation of Compensation Process of ROW

Complaints by the landowners sometimes come up as the landowner feels that one or several of his trees have not been compensated yet. Such issue may cause obstacles and delays to the stringing activities as the landowner insists on clarification by PLN. In order to avoid such

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disputes during construction, PLN Land Acquisition team continuously goes for rapprochement to landowners. Moreover, landowners demand prices much higher than the price offered by PLN for plants and process of compensation for plants within corridor of ROW, i.e.

1) Consultations with relevant stakeholders to inform on the purposes of the project development, potential impacts and Right of Way activities.

2) Identify of tree owner

3) Announcement of inventory results (14 working days after)

4) Plants valuation based on Public Appraisal Service (Kantor Jasa Penilai Publik, KJPP). 5) Socializations with APs, announcement of compensation

6) Transfer of compensation amount to tree owner. 7) Clearing the released ROW

First phase of socialization for ROW corridor of 150 kV Bengkayang – Ngabang – Tayan Transmission Line was conducted on January - March 2016. The list of socialization can be seen in Table 10. On first phase socialization, in each sub district LAC/PLN explained preliminary information about stringing work and the compensation for trees to be granted as referred to Bupati Landak Decree. PLN also gave general explanation about the free space required for the transmission line.

Table 10. List of Socialization Plant, Building, and Land/ROW Compensation for 150 kV Bengkayan – Ngabang – Tayan TL

No. District Village Date

1. Landak Antan Rayan 6th September 2016

2. Bengkayang Dharma Bakti 21st October 2016

3. Landak Ansang 2nd November 2016

4. Landak Mungguk 16th November 2016

5. Bengkayang Bani Amas 6th December 2016

6. Landak Jelimpo 31st_{March 2017}

7. Sanggau Tae 21st April 2017

8. Sanggau Padi Kaye 19th April 2017

9. Sanggau Cempedak 28thJuly 2017

Detailed of 150 kV Bengkayang – Ngabang - Tayan socialization plant, building, and land/ROW compensation can be seen in Attachment 13.

Second phase of socialization commence on September 2016 was conducted by PLN UPP Kitring KBB 3 in Singkawang. Socialization was attended by PLN UIP Kalbagbar, PLN UPP Kitring KBB 3, the public appraisal company KJPP, MUSPIKA, Head of Dewan Adat Dayak (DAD), Army, Police and affected people. In this socialization, Head of Dewan Adat Dayak asked the villagers not to obstruct the construction work and any concern to Adat problem should be avoided. PLN explained to all affected people the compensation for land and plants within the ROW corridor of the 150 kV transmission line based on Regulation no. 3812013 of Ministry of Energy and Mineral Resources of the Republic Indonesia about compensation for land, building and plant under the free space of high voltage transmission line. PLN will pay 15% of the appraised land value as compensation for land located within the ROW corridor as the land still belongs to the people but the use is restricted. Second phase of socialization of ROW

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compensation is completed on April 2017. Compensation payment for Package 3 150 kV Bengkayang – Ngabang – Tayan TL, Section 1 Bengkayang – Ngabang has been completed in 2016, for section 2 Ngabang - Tayan completed in August 2017 in total amount payment of all sections was Rp.110.096.233.344. The monitoring progress ROW for Package 3 is shown in the Table 11.

Table 11. Monitoring Progress ROW for 150 kV Bengkayang – Ngabang – Tayan TL

No Section KJPP Number Tower/ Span ROW Length Compensation

Amount Implementation Progress

1 Section 1 150 kV Bengkayang -Ngabang TL KJPP Dwi Haryanton o Agustinus Tamba 279 Tower/ 278 Span 95,6 km Rp 69,124,002,971 Socialization (September 2016) Inventory (March 2016) Assessment &compensation assignment (September 2016) Payment: - Land/ Rp 10,608,316,800 - Building/ Rp 3330,990,001 - Trees/ Rp 58,184,696,170 - Payment Progress (100%) 2 Section 2 150 kV Tayan-Ngabang TL KJPP Dwi Haryanton o Agustinus Tamba 128 Tower/ 127 Span 46,8 km Rp 40,972,230,363 Socialization (November 2016) Inventory (June 2016) Assessment &compensation assignment (November 2016) Payment: - Land / Rp 5.442.465.000 - Building / Rp 3.315.000 - Trees / Rp 35.526.450.363 - Payment Progress (100%)

Detailed list of monitoring progress ROW for Package 3 can be seen in the Attachment 14. Identification of APs and assets for ROW for Tayan – Sanggau – Sekadau is planned to be conducted from February – October 2018. PLN needs to mobilize more resources to ensure timely completion. An appraiser has been hired and ROW appraisal is planned to be conducted in April-December 2018. ROW payment is planned to be conducted from May 2018 - February 2019.

4.2 Funds Availability and Sourcing and Limitations to RCCP Implementation

Funds for the implementation of the RCCP are part of the Project budget. Costs have been estimated based on: (i). for affected land using the unit rate use d during the construction of West Kalimantan land acquisition of 150 kV Transmission Line Project Strengthening West Borneo Power Grid 2014, with the consideration of the inflation rate of 8.36% per year in 2014, 3.35% in 2015 and 4.7% in 2016, (ii) for affected structure based on unit rate appraise by Independent Appraisal for affected structure in the Sp. Tanjung - Entikong under TA Second Regional Road Development Project 2013 with consideration of inflation rate (iii) For affected trees based on the the agreed unit rate in the socialization of

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development plan of 150 kV Siantan - Tayan Transmission Line, January 2015 and Bupati Bengkayang Decree on Compensation of trees and crop, 2013.

Estimation cost is intended to principally provide PLN a basis for calculating the cost of resettlement, particularly compensation for affected assets. Therefore, during the Implementation Stage of the land acquisition process as mandated by the new Land Acquisition Law of 2012 and PLN Decree No.289.K/D/2013, the PLN UIP Ka lbagbar will appoint a licensed property appraiser to do a detailed property appraisal of all affected assets. The results of the work of the property appraiser will be used by the PLN LAC in negotiating with AHs the levels of compensation for their affect ed assets. Table 12. provides a breakdown of the resettlement costs.

Table 12. The cost of resettlement for the Tayan-Sanggau-Sekadau up to December 2017

Particulars/Items Unit rate (Rp) _{Budget based on}Estimated RCCP (Rp)

Actual Budget (Rp)

Cash compensation for total land to be acquired for 2 new substation (29,050 m2)

60,000* 1,743,000,000 12,643,087,410

Cash compensation for total land area to be acquired for tower base

(excluding total land need to construct 14 tower base located in the forest area) (76,275 m2)

60,000* 4,576,500,000 8,271,472,800

Cash compensation for total land area will be restricted by the transmission line ROW (2,968,400 m2)***

9,000 26,715,600,000 N/A

Cash compensation for structures : - House (permanent) 50 m2 - Farmshed (temporary) 12 m2 2,477,567** 1,160,517** 122,378,350 13,926,204 Cash compensation for trees ***:

- Small (818 trees)

- Not bearing fruits (829 trees) - Bearing fruits (2574 trees) Compensation for tall trees restricted by transmission line ROW*****

65,181,000 173,739,400 843,322,000

N/A

Compensation for crops (5,649 m2) 18.028.519

Cost for IRP (100 pepper seeds x 137 AHs = 13,700 seeds) and training on farming.

20,000*** 274,000,000

Sub-total (direct costs) 33,703,196,795

Cost contingencies (15% of direct costs) which includes Appraisal Team and IMA

5,055,479,519

Operational costs (3 % of direct costs) 1,011,095,904

Grand Total 39,769,772,218 20,914,560,210

* the unit rate used during the construction of West Kalimantan land acquisition of 150 kV Transmission Line Project

Strengthening West Borneo Power Grid 2014 (Rp. 48,000/m2), with the consideration of the inflation rate of 8.36% per

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***) unit rate include budget for training proper pepper cultivation

** the reference unit rate appraised by Independent Appraisal for affected structure in the Sp. Tanjung – Entikong under TA Second Regional Road Development Project 2013 with consideration of inflation rate of 8.36% per year in 2014, 3.35% in 2015 and 4.7% in 2016

***detailed calculation of estimation cost for replacement trees is shown in appendix 2

**** Easement fee in the amount of 15% of the current land value will be given for land area under the transmission line without any deduction of tax (for transaction cost) and administrative cost)

*****Could not be estimated now, since the alignment of transmission line have not determined yet

5. Capacity Development and Awareness Services of PIC

5.1 Capacity development to Contractors

The workshop is particularly to guide the project implementation concerning the entitlement matrix and eligibility in the compensation and resettlement policy principles as stated in the RCCDP and RCCP. Other services provided included field assistance to cope with social issues emerged including the issues faced by the contractors. Regular monthly meetings on the project implementation progress were set up to continuously monitor the progress.

PT PLN (Persero) provided initial orientation to the contractors prior to the commencement of the civil works to help and guide the contractors' supervisors to understand the potential social safeguards/social issues, develop a plan for handling and mitigating complaints/issues emerging during the project implementation, the clauses on contractual matters, and develop handling OSH issues.

Capacity Building was held on November, 15th -16th 2017 at Orchard Gajah Mada Hotel Pontianak to improve the capability of all workers. The subject discussed related to the report to be made. The subject discussed seen in Table 13.:

Table 13. Summary of Capacity Building Implementation

Date Subject Description Attendances

Male Female 15th November 2017 Environmental Safe Guard - Requirement Environmental Safe Guard for ADB-funded project

- Describe identification of Environmental Safe Guard - Arrangement of Environmental report 43 13 15th November 2017 Social Issues - Implementation of social problem solving

- Explain the types of Social Report

- Purpose and scope of Social Protection Document 43 13 16th November 2017 Contractual Matters

- Type of FIDIC’s contract

- General terms of EPC/Turnkey Project’s General Terms

- Extension of task delivery time 43 13

Occupational Safety and

Health

- OSH requirements for

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The complete document on capacity building in the form of mom and absent can be seen in Attachment 15.

5.2 Support to PLN on the Compensation Payment Principle Analyze

PT PLN (Persero), as stated in the Project Administration Manual, is required to assign an external monitoring agency to monitor the RCCDP implementation and analyze compensation payment principles, severity and vulnerability impacts to affected persons following the completion of RCCDP 275 kV Bengkayang - Jagoibabang implementation. The monitoring report will be used to identify whether the compensation payments provided by PLN meet ADB IR policy principles and suggest to PLN if there is corrective action needed.

Predecessor PIC has conducted survey related to the satisfaction of the APs for the compensation received by the land acquisition and Right of Way for Package 1 to 4. Successor PIC (Pusmankon) will conduct survey on AP for Tayan - Sanggau - Sekadau Transmission Line and Substations relating to land acquisition tower and ROW simultaneously with ROW appraisal in 2018.

6. Social Issue and Mitigation

With regard to PIC services, Social Specialist assisted PLN to conduct a series of ad-hoc consultations in the field. The first consultation meeting was about the project information disclosure. It targeted the participation of generally impacted communities, affected households as well as involving formal and informal leaders to inform about the benefits and disadvantages of the project. The second consultation was more advanced and addressed the needs of APs/ landowners, witnessed by officials of the government, police and military officials. The socialization described the inventory of losses and how it was administered. Details of compensation policy for land, plants/crops and other assets affected were also described. The community was also informed about the PLN UPP KBB 2 internal land acquisition team and the procedure for grievance related to the inventory of losses and the compensation to be paid. Most of the social issues concern land acquisition and clearing of ROW corridor of trees as the landowners claim a higher price than the price offered for compensation. The majority of the land acquisition issues relate to disputed parcels due to overlapping borders that impact to plants compensation, and that landowners do not agree with the price offered by PLN. Impact of rerouting of towers also cause problems for land acquisition as LAC has done rapprochement with landowners for the original location and has to conduct new process of land acquisition for the new location.

Land acquisition issues cause obstacle to the construction as the landowners do not allow the contractor to work in the area before the problem is resolved. PLN UPP KBB 2 continued conducting meetings with landowners, MUSPIKA and head of Adat to resolve the land acquisition issues to get agreement from the landowners. The process of problem resolving in some cases takes even a few months. List of social issues found at site and mitigation can be seen in Table 14.

INO: West Kalimantan Power Grid Strengthening Project

Social Monitoring Report