Project Brief
1. Identifiers:Project Number: / P040528
Project Name: / Indonesia: West Java /Jakarta Environment Management (WJJEMP)
Duration: / 9 years (Adaptable Program Loan)
Implementing Agency: / World Bank
Executing Agency: / Jabotabek Waste Management Authority; Ministry of Public Works; Local Governments
Requesting Country or Countries: / Republic of Indonesia
Eligibility: / Indonesia ratified the UNFCCC on 8/24/94
GEF Focal Area: / Climate Change
GEF Programming Framework: / Short Term Measure
2. Summary:
The 50 million people of Indonesia’s West Java/Jakarta metropolitan area generate 50,000 tonnes of solid waste per day, much of it organic. Only 50-60% is collected – the rest is dumped in canals, vacant lots, or burned. Poor solid waste management degrades local waterways and creates air pollution. It causes respiratory ailments and spreads diseases, such as Dengue Fever. Anaerobic decomposition of organic waste in crude landfills produces 6 tonnes of CO2 equivalent per tonne of waste processed. In addition, useful organic matter is wasted, and soil fertility correspondingly reduced, because it is not returned to the soil as compost.
The WJJEMP will improve waste management and the environment of this large urban area. Its proposed GEF component – a community-based organic waste compost scheme – would pilot an innovative, environmentally-sound and cost-effective alternative method of organic waste management. It would separate organic waste and convert it to agricultural compost by a process of aerobic decomposition, which produces much lower GHG emissions. The compost would be sold to farmers as a soil enrichment product. Diverting organic waste from landfills would avoid significant methane gas production, and thus reduce Indonesia’s GHG emissions. Converting it to agricultural compost would enhance agricultural productivity and soil biodiversity in neighboring agricultural areas. The compost scheme’s results would be monitored, evaluated and disseminated throughout Indonesia and to other developing countries.
GEF support of $10 million would be provided in three tranches. In tranche 1, GEF would contribute $3 million to launch a compost incentive scheme and $0.4 million for scientific assistance and awareness. Release of tranche 2 funds of $4 million would be conditional on at least 150,000 tonnes of quality waste compost being sold. Tranche 3 funds of $2.6 million would require a further 450,000 tonnes of compost sales. The overall target is 1 million tonnes of compost sales and 6 million tonnes of CO2 emissions avoided at a cost to GEF of $1.7/tonne.
3. Costs and Financing (Million US):
gef: / -Project
-PDF:
Subtotal GEF: / 10.0
N/A
10.0
Co-financing of GEF component / -Jabotabek WMA
-Communities (in kind)
-Subtotal Co-Financing: / 0.5
16.5
17.0
Total GEF Component: / 27.0
financing of non –gef components / -Country
-IA
-Subtotal / 77.7
141.7
219.4
Total Project Cost: / 246.4
4. Associated Financing (Million US$) / N/A
5. Operational Focal Point endorsement:
Name: Effendy Sumardja
Organization: State Ministry of Environment / Title: Assistant Minister for Coordination
Date: January 27, 2000
6. IA Contact: / Robin Broadfield, GEF Regional Coordinator, EAP,
Tel. # 202-473-4355 Fax: 202-522-1666
Internet:
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
ALGAS Asia Least-Cost Greenhouse Gas Abatement Study
AMDALs Environmental Assessment Process/Report, Govt. of Indonesia
APL Adaptable Program Loan
BAPPENAS Ministry of Plan, Indonesia
BOD Bio-chemical Oxygen Demand
CAS Country Assistance Strategy
CDS Country Development Strategy
CO2 Carbon Dioxide
DPRDs Local Councils of Indonesia
EA Environmental Assessment
GDP Gross Domestic Product
GEF Global Environment Facility
GHG Greenhouse Gas
GOI Government of Indonesia
GTZ German Technical Cooperation
IUDP Integrated Urban Infrastructure Development Projects
KIP Kampung (Slum) Improvement Program
LPG Liquefied Petroleum Gas
MEIP Metropolitan Environmental Improvement Program
MOU Memorandum of Understanding
O&M Operating and Maintenance
OECF Overseas Economic Cooperation Fund
OED Operations Evaluation Department
PCR Project Completion Report
PDF Participatory Development Fund
PMO Project Management Office
PMU Project Management Unit
RSI World Bank Resident Mission, Indonesia
A: Program Purpose and Project Development Objective
1. Program purpose and program phasing:
1. The West Java/Jakarta Environment Management Adaptable Lending Program (APL) fits the Bank's assistance strategy for Indonesia in four ways: (i) it supports the drive for better governance and stronger institutions; (ii) it alleviates poverty and improves the local environment through community-based action; (iii) it assists a region - west Java - that was hard hit by the recent economic crises and, as home to many of Indonesia's industries, faces severe population density and pollution issues; and (iv) it supports Indonesia’s efforts to reduce its greenhouse gas emissions from decomposition of organic waste, a national priority under the Climate Change Convention.
2. The program’s main aim is to improve municipal environment service delivery. This will be accomplished by promoting greater community participation and private sector involvement in the provision of those services; stronger local government finance; and improved local government management capacity and better coordination between provincial and central government agencies. A three phased approach will coincide with and promote the devolution of service delivery to local governments, increased public awareness and participation in local governance, economic development in western Java, enhanced environmental awareness, and increased willingness and capacity of local governments (and residents) to pay for environmental services in the municipalities.
3. APL1 will define performance targets that must be achieved before APL2 can begin. This will: (i) overcome the implementation problems experienced in past landfill operations, e.g. by requiring establishment of community advisory boards in APL1 before new landfills are developed in APL2; (ii) encourage focus on service delivery planning and management in APL1, ahead of construction in APL2; (iii) promote involvement of civil society in service delivery planning and provision, e.g. by establishing annual local "State of the Environment" reports and mechanisms of community consultation up front; (iv) encourage integration between components and across government agencies; and (v) exclude localities where the community or administration does not support improved environmental service delivery at this time. Phasing also requires a smaller financial commitment from local government at a time when revenues are uncertain. Phasing the GEF waste composting component will link the commitment of GEF resources to actual GHG emission reductions achieved by a functioning organic waste compost system.
4. The move from APL2 to APL3 will be predicated on greater willingness and ability of local governments to finance and manage environmental services (with increased community and private sector assistance), on adherence to minimum service standards, e.g. operating sanitary landfills, and to further GHG emission reductions.
5. The program also supports the Government's objectives of poverty alleviation, e.g. assisting waste pickers and coastal zone settlements; and effective decentralization of governments services, and improved urban environments (the cities in the project area are among the most polluted in Indonesia). At a regional level the project is important to DKI Jakarta's goal of being an "international service city" and West Java's program of industrialization and improved livability.
2. Project development objective:
A. Assist GOI and participating communities to improve the environment in the major urban areas of Jakarta and West Java (Serang, Cilegon, Bandung, Bogor, Kabupaten/Kotamadya, Tangerang, Bekasi, and Cirebon).
B. Assist GOI to enhance the efficiency of urban environment service delivery and municipal waste management in these areas, and promote waste composting as an alternative to collection and landfill dumping.
C. Improve the quality of life and economic well-being of waste pickers.
D. Reduce the rate of growth in waste generation.
E. Increase awareness in environmental issues and suitable responses.
3. Global environment objective:
6. The program will support the GEF’s objective of reducing the risk of climate change by avoiding significant methane gas production from the decomposition of organic waste in landfills and the resulting emission of this potent greenhouse gas. It will also enhance agricultural productivity and soil biodiversity in the surrounding area by making productive use of the organics that are removed from the urban waste stream. These benefits will be achieved by converting the organic fraction of the solid waste stream to agricultural compost, rather than trucking it to and dumping it in landfills.
7. Tonne for tonne, a 20-fold decrease in GHG emissions can be achieved if organic wastes are degraded aerobically, i.e. composted, rather than degraded anaerobically in landfills. In landfills, 75% of organic waste degrades anaerobically. This generates 330 Kg of CH4 (methane) per tonne of waste, or 6600 Kg of CO2 equivalent. The remaining 25% degrades aerobically, contributing 110 Kg CO2 per tonne of waste. Therefore one tonne of waste deposited in a landfill generates 6710 Kg of CO2 equivalent.
8. In contrast, composting - which degrades the organic waste aerobically - generates only 440 Kg of CO2 per tonne of waste processed. So processing waste by composting, versus landfilling, reduces CO2 emissions by about 6 tonnes per tonne of waste treated. The GEF component will divert at least 1 million tonnes of organic waste from landfill dumping to composting, hopefully much more. Therefore a conservative estimate of its GHG emission benefits is that it will reduce Indonesia’s emissions of CO2 equivalent by at least 6 million tonnes over the program’s nine year life.
4. Key performance indicators:
A. Solid Waste Management: establishment of Jabotabek Waste Management Authority; increased waste collection; improved waste disposal; reduction in the increase of waste generation; significant amount diverted to composting.
B. Community Environment Facility: number and success (pollution reduction and employment generation) of community programs.
C. Medium and Small Scale Industries: reduction in pollution and increased profitability of participating businesses.
D. Environmental Education: number of teachers trained, overall success in increase in community awareness.
E. Environmental Management: ability of local governments to identify and respond to local environmental issues; establishment and effective operation of local "environment forums".
F. Integration and Support: effectiveness of local governments to respond to environmental issues that transcend and, single department (i.e. local leadership, management, and team work); number of key staff properly trained and able to apply their learning; ability of Central and Provincial agencies to support local governments.
G. Greenhouse Gas Emission Avoidance: Amount of compost produced and sold (quality and cost per tonne of GHG avoided). Tartget - at least 1,000,000 tonnes of compost to be produced (of which at least 150,000 tonnes in APL1). Each tonne of compost produced reduces GHG emissions by 6 tonnes of CO2 equivalent.
B: Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project:
Document number: 18963
Date of latest CAS discussion: 02/16/99
9. The program will address the CAS goal of greater government decentralization by promoting service delivery at the local government level, with assistance from the provincial and national levels. Institutional capacity of local governments will be increased. It will also help achieve the broad goal of improving urban environments, as well as enhancing the role of the private sector in providing urban services. It is the first urban activity to work with newly-empowered local Councils (DPRDs) and to produce a specific and agreed program to strengthen the partnership between civil society and local government.
1a. GEF Operational Strategy/Program objective addressed by the project:
10. The GEF component is submitted under, and is fully consistent with the Short Term Climate Change window of the GEF's Operational Strategy. It meets the criteria for such projects in that it is; (a) highly cost effective (unit GHG abatement cost of $1.7/tonne of carbon equivalent), (b) very likely to succeed, as demonstrated by previous small-scale pilot compost activities and the sustainability analysis, and (c) is one of Indonesia's priority GHG abatement initiatives, as confirmed by in its First National Communication to the Climate Change Convention (page 4-19), the ALGAS Report, (pp 13 and 15), and by the support expressed by the government, community representatives and local administrators. An independent scientific committee will be established to monitor and verify the compost production and GHG emission reductions and their costs. This scientific committee will help to establish Indonesia as a "center of excellence" on both compost production and research and will facilitate the project’s replication.
2. Main sector issues and Government strategy:
11. The main issues relating to the urban environment are: (a) insufficient recurrent budgets for operations and maintenance; (b) inadequate capital investments to keep pace with the rapid rate of urban growth in the area; (c) high levels of air and water pollution from disparate point and non-point sources; (d) institutional weaknesses and poor coordination among responsible agencies; (e) low awareness among the public on the impact of urban pollution and suitable ways to respond.
12. The principal issues associated with environmental management at the municipal government level are: (a) inadequate operating and capital resources; (b) unclear roles vis-à-vis provincial and central government agencies; and (c) weak institutional capacity. The promotion of composting as an alternative to organic waste collection and landfill dumping, responds to one of Indonesia's top GHG emission-reduction priorities which, without GEF assistance with its incremental costs, could not be achieved.
13. The following reports highlight key sectoral issues to be addressed by the project:
Indonesia Environment and Development: Challenges for the Future (Report No. 12083-IND, March 21, 1994)
14. This report provides a comprehensive analysis of environmental challenges facing Indonesia; their causes, their impacts, costs and proposed ways to pay for remediation, and a priority action list. It provides order of magnitude estimates which were sufficient to identify the highest priority issues: namely, water supply and sanitation, solid waste management, vehicle emissions and industrial pollution control - particularly in Java. The report calls for a doubling of investments in urban water supply and drainage, sewerage and sanitation and solid waste management ( from about Rp 2.0 trillion or 0.2% of GDP to about 0.4% for Indonesia).
Private Sector Participation in Solid Waste in Indonesia (Informal Sector Work, March 1995)
15. This report summarizes the barriers to greater private sector participation in waste management (e.g. lack of technical knowledge, inadequate planning and contract periods being too short) and suggests ways to improve service delivery through the judicious use of private firms; largely through increased competition, accountability and transparency.
Community Based Composting and Recycling Pilot Project (1996)