INITIAL ENVIRONMENTAL EXAMINATION (IEE)Amendment#1 to Asia 15-078 Indonesia IEE PIO Grant to UNOPS for GAMBUT

PROGRAM/ACTIVITY DATA

Development Objective (DO)DO3 – Global Development Priorities of Mutual Interest Advanced

Country Indonesia

Project Title

Public International Organization Grant to United Nations Office for Project Services (UNOPS) for GAMBUT (Generating Anticipatory Measures for Better Utilization of Tropical Peatlands) Program

Life of Program (LOP) Duration July 1, 2015 – December 31, 2017LOP Funding $3,345,530Current Date July 31, 2017

IEE Prepared by: Yusak Oppusunggu (ENV-USAID/Indonesia)

IEE Amendment (Y/N): YIf ‘YES’, Number and Date of Original IEE: Asia 15-078 dated June 10, 2015 (link to the original document http://gemini.info.usaid.gov/repository/pdf/43896.pdf)     ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable)Categorical Exclusion:   [X]    Negative Determination with Conditions: [X]   Positive Determination: [   ]    Deferral:                                     [   ]

ADDITIONAL ELEMENTS: (Place X where applicable)Conditions: [X]

SUMMARY OF FINDINGS:

A Categorical Exclusion is recommended pursuant to 22 CFR 216.2(c)(2)(i) for education, technical assistance, or training programs; 22 CFR 216.2(c)(2)(iii) for analyses, studies, academic or research workshops and meeting activities; 22 CFR 216.2(c)(2)(v) for documents and information transfers; and 22 CFR 216.2(c)(2)(xiv) for studies and activities intended to build the capacity of the recipient country to engage in development planning.

A Negative Determination with Conditions is recommended in accordance with 22 CFR 2 I 6.3(a)(2)(i) for GAMBUT activities involving actions that directly or indirectly affect the physical or natural environment, including spatial and land-use planning, small-scale construction activities designed to assist communities with peat fire prevention, such as interventions used to reroute, control, and collect water; assistance in agricultural practices such as small scale irrigation systems, alternative crops or cropping patterns, or modified land use patterns; peat forest or agricultural land rehabilitation and reforestation.Update:

The GAMBUT project aims to ensure that anticipatory forest and peat land fire risk management is mainstreamed into the development planning of high-risk areas in Indonesia, which in turn will reduce hotspot incidence and haze impacts and GHG emissions. The project has been aiming to achieve the following objectives:

1. To equip national stakeholders with the tools and capacity required to guide districts, forest management units (FMUs) and provinces in mainstreaming peat fire management into spatial and development planning through a gender-sensitive participatory approach.

2. To increase the capacity for national scale implementation of low-emission development strategies in the land-use sector, including REDD+ activities.

3. To equip provincial and district stakeholders, including local planners and communities with the tools and capacity to mainstream peat fire risk mitigation activities into the development planning processes aligned with respective levels of responsibility (including district officials for non-forest lands, FMU staff for forest lands and provincial officials for overall planning).

4. To improve the ability of provincial and district-based fire coordination centers and community organizations respond to fires more effectively through the use of early warning systems.

GAMBUT and Institut Pertanian Bogor (IPB) staff are training key analysts, users, and decision makers in the project’s two target provinces of Central Kalimantan and Riau; to use the Fire Risk System (FRS) for fire prediction as well as development budgeting and planning. Further, the data generated by the FRS is used to identify high risk areas that have been targeted for fire risk mitigation pilots, including canal blocking in Barito Selatan district, and firefighter training in Pulang Pisau district. GAMBUT also supported a South-South Technical exchange with the South African group Working on Fire (WOF), in partnership with GIZ. The WOF uses a community-based integrated approach to fire management that will provides opportunity for developing several new skills for the young adults and getting some funding supports.

So far the project has been successful in further developing and improving the usage and functionality of the FRS in line with the original project scope. During the final phase of GAMBUT, the project will support a series of national-level meetings and planning, both in better integrating of the FRS into disaster platforms in Indonesia, as well as promoting activities for a standardized approach to fire prevention. GAMBUT and IPB staff will also convene a series of meetings to bring national level stakeholders together to review the various reporting systems and develop a plan for integration and sharing of the systems between government agencies. GAMBUT will also work at the national level with the Peatland Restoration Agency (Badan Restorasi Gambut, BRG) in identifying areas for peat restoration in Central Kalimantan and Riau, using the data collected through the District Fire Blueprint process as well as the FRS vulnerability maps.

Additional provincial and district level activities to be undertaken by GAMBUT include:

2

- Introduce the Integrated Fire Management (IFM) as a holistic approach to fire management. Through the IFM, the FRS will also be operationalized and mainstreamed. These activities will take place in Central Kalimantan.

- Provision of Personal Protective Equipment (PPE) and Personal Protective Clothing (PPC) for the Community Fire Brigades (Masyarakat Peduli Api, MPA) in six villages in Pulang Pisau District, Central Kalimantan Province; and provide the trainings on fire fighting techniques and equipment maintenance to the MPA members, village leaders and IFM members.

- Roundtable discussion using the Columbia University study on the fiscal incentives that promote FRS products for fire prevention at the district level in Riau province.

1. PURPOSE and SCOPE

On Sep 16, 2015, Office of U.S. Foreign Disaster Assistance (OFDA) Washington issued the GAMBUT award to United Nations of Project Services (UNOPS), with funds from USAID/Indonesia and OFDA.  USAID/Indonesia prepared the IEE and this following amendment. The LOP duration of the original IEE (Asia 15-078 dated June 10, 2015) is until December 31, 2016. After the IEE approved, the GAMBUT Project was officially issued on September 2015 with the ending date of GAMBUT was set on March 31, 2017 (which is three months beyond the IEE expiration date). USAID/Indonesia did not extend the IEE at that time because under the Asia/Bureau Environmental Officer (BEO) guidance that was published on March 25, 2015, no IEE amendments are required if the LOP duration is extended less than six months (see Annex 2 and also the Section 6.2 of this IEE). 

OFDA Washington made several modifications, and added more funds to the award. The latest one was on Apr 19, 2017 that increased the total amount of this award to $3,345,530; and changed the ending date to Dec 1, 2017 (see Annex 3).  USAID/Indonesia learned about the modification after the fact; therefore, it is necessitating to prepare this IEE Amendment. The purpose of this IEE amendment#1 is to:

- Extend the LOP duration and fill the gap between December 31, 2016 to December 1, 2017;

- Increase the LOP funding from $2,084,892 to $3,345,530;- Change the activity “Option Identification Workshops” to “”Option Identification Survey”;

and- Add two new activities: “Building awareness through stakeholder engagement” and

“Enhance fire suppression”.

The scope and nature of all other activities as approved in the original IEE (Asia 15-078) remain the same.

3

2. BACKGROUND AND ACTIVITY DESCRIPTION

2.1 Background of Activity

The 2014 fire episodes in Riau and in Central Kalimantan underline a long-term, dramatic increase in fire vulnerability within the Indonesian peat landscape. In the early 2000s, fire was used mainly as a tool for forest clearance and incidence was most severe during dry years, which were linked to the El Niño Southern Oscillation (ENSO). This resulted, to a significant extent, in similar fire patterns for Central Kalimantan and Riau, where fires would escalate during an El Niño year, with normal and La Niña years remaining relatively fire free. However, the recent 2013, 2014 and early 2015 fire outbreaks in Riau demonstrated a clear break from this pattern and instead show new areas of rapidly increasing fire vulnerability. Research has since shown that during the last five years or so, fire outbreaks have been observed after a relatively short period of below average rainfall in an otherwise wet year in highly localized areas with high intensity; this means that, in Riau, fire risks are higher not only in dry years, but in wet years as well. This is significant due to the importance that Riau province, and the island of Sumatra, has on regional haze and health impacts: the fires of both 2013 and 2014 also resulted in record high air pollution in Singapore.

The underlying causes of the changes in Riau fire dynamics are still being researched. But initial field assessments showed that the emergence of independent smallholder growers in Riau have led to major shifts in land use, supply chains and demographics, fueling increased fire vulnerability. The various pressures on the land have encouraged the development of smallholders, who clear land cheaply through the use of fire. The process of smallholder palm oil development itself is also fueled by changes in palm oil legislation, which have provided the opportunity for the establishment of milling operations without plantations, the provision of feedstock, and the facilitation of independent cultivation by smallholders outside contract farming arrangements. This also occurs alongside the inability and/or unwillingness to control encroachment, especially in production forest areas. Customary land claims by communities are often a first step to claim control over forest lands. After claims are acknowledged at village level, the land is cleared and then sold to migrants or other medium sized entrepreneurs who cultivate palm oil on these lands.

The land is being opened up by smallholders for palm oil development is located on peat land that has to be drained before palm oil or most other crops can be cultivated. This creates high vulnerability to fire, particularly during periods of low rainfall, when draining peat reduces the water table and renders the peat extremely dry. This also renders the area vulnerable to flooding in the rainy season due to decrease water holding capacity of peat. On top of all of these issues, the fire management system in Indonesia remains response-oriented, focused on fire-fighting paradigms that are developed for bush fire management in dry climates, as opposed to fire risk mitigation in degraded tropical peat lands. This mismatch means fire-fighting activities are ineffective in both responding to peat fires and mitigating future risk of such fires.

4

At the core, the GAMBUT-Project is a Fire Risk System (FRS) developed by IPB and Columbia University, with previous support from the UN Office for REDD+ Coordination in Indonesia (UNORCID) and USAID. The FRS encompasses four key elements of weather, fire history and biophysical factors leading to fire risk, ENSO patterns, and climate prediction tools based on forecasts of the Agency for Meteorology, Climatology and Geophysics (BMKG). The FRS is a multi-functional tool that provides a probabilistic forecast to policymakers of the likelihood of fire several months in advance. Information from FRS can also be used to measure reductions in fire vulnerability from year-to-year. Fire vulnerability maps then inform decision makers of the most appropriate areas for peatland rehabilitation. The system shows what types of variables –whether biophysical or socio-economic– are the strongest indicators of fire vulnerability, which is important to know when deriving policy solutions around land use, cropping patterns, and more.

With early anticipation of fire hotspots, governments will be able to tailor preventive actions and mobilize resources to specific fire hotspots in Indonesia, based on predicted fire risks. The FRS tool must be accompanied by support from government and non-government stakeholders in order to sustainably mitigate fire risk by structuring and streamlining fire risk mitigation activities into development planning. Learning from the previous Indonesia Forest and Climate Support (IFACS) project and now working alongside LESTARI project’s partners (both are USAID forestry flagship projects) focused on environmental governance, GAMBUT is well positioned to achieve this multi-pronged approach. And by using an innovative tool explicitly facilitating action at a longer time-scale and national frameworks while providing guidance to local government, GAMBUT will empower governments and communities to develop locally-driven solutions to fire risk reduction.

This project aligns closely with the OFDA Washington focus on prioritizing and strengthening early warning, preparedness, mitigation and prevention of hazards.  In addition, it closely aligns with USAID/Indonesia objectives under Development Objective 3: Global Development Priorities of Mutual Interest Advanced, Intermediate Result 3: Climate Change Mitigation and Resilience to Support a Green Economy Increased.  It also builds upon previous work supported by USAID through the University Partnership Program between Columbia University and the Institut Pertanian Bogor to mitigate and adapt to climate change through research and preventative action on peat fires.  

2.2 Description of Activities

GAMBUT program is broken down into the following component activities, which some of those are already completed and the rest are still ongoing until the end of project, as follows:

A. Completed activities

Vulnerability Mapping Toolkit: This toolkit comprised guidelines to national and provincial policymakers on how policymakers use the FRS tools, specifically the vulnerability maps, to mainstream fire risk mitigation in spatial and development planning. It showed how the

5

maps within FRS can be used for benchmarking achievement in risk reduction, by identifying reductions in vulnerability year after year. [Completed]

Vulnerability Mapping Approach Training: In each of the eight districts, as well as at the provincial level, participants were trained on how to use the vulnerability mapping approach for social and economic development, spatial planning and annual budgeting. [Completed]

Model Development in West Kalimantan: The fire vulnerability map had already been created for West Kalimantan, an assessment of the statistical relationship between climatic factors and fire incidence was conducted under this project. A thorough field-based study was conducted to ensure FRS model findings are in line with field observations. [Completed]

Automation of Vulnerability Mapping: Automating FRS helped local governments to evaluate and assess the impacts of changes to the spatial plans on fire vulnerability by testing different scenarios. It helps planners to identify spatial plans with low fire risk and subsequently aid them in developing programs to anticipate the consequences of adopting specific spatial plans. [Completed]

Development of an Alert System: The alert system provided information on anticipated hotspots as well as anticipated impacts on air quality and fine particle density by informing users when there is extreme prediction or high risk of fire beyond a certain level. The information is an SMS based and is integrated with fire prevention control centers as well as planning processes. [Completed]

South-South Technical Exchange: Under this project, UNORCID/UNOPS led a technical exchange between Indonesian government and non-government counterparts and the South African NGO, Working on Fire (WoF). During the exchange, WoF presented its program and discuss applicability in Indonesia during field visits to target provinces of Riau and Central Kalimantan. UNORCID/UNOPS also led an exchange trip to South Africa to visit WoF's training facility and community-based fire-fighting team, and provided follow-up technical assistance from WoF to their Indonesian counterparts. [Completed]

Option Identification Survey: Using a participatory and gender-based approach, together with community representatives, technical agency staff and experts, surveys were held at district and at the provincial levels, and were to develop a number of technical options proven to reduce peat fire risk specific to each district. Given the complex social, economic, and biophysical dynamics that vary from district-to-district, fire risk mitigation requires addressing peatland ecology, agricultural livelihoods and incentives for land-use change systematically in each location. For example, needs might include construction of canal barriers using materials such as soil bags, rubber, and wood. Other actions included outreach to smallholders to promote alternative livelihoods options beyond palm oil, or alternative land use patterns. These surveys were critical to building the capacity of local government officials and community members to collectively identify key fire prevention actions in their communities. Identified options were screened using a simple multiple variable assessment tool and two to three scenarios were developed to test options and implement viable approaches. [Completed]

6

B. Ongoing Activities

Scoping Study for Awareness Raising in Papua: A scoping study in Papua is conducted to assess the potential future implications of land clearing processes and fire vulnerability. The objective for this study is to identify mechanisms in Papua for anticipatory fire management in development processes which could be employed to mitigate fire risk before situation progresses.

Integration of BMKG Rainfall Forecast System: The FRS integrates BMKG’s forecasting data into the tool. Integrating BMKG’s forecasting system and historical data are important for government ownership of the FRS, while allowing model improvements.

Policy Development Training: Using FRS outcomes, trainings are organized for district and provincial parliamentarians, local officials, communities and private sector companies; these trainings enable them to understand how to use the FRS to identify better policies and land use planning decisions.

Community Engagement: Using the enhanced web and mobile-based component of the FRS, outreach and awareness raising activities are conducted to improve knowledge throughout the community, including the private sector, and amongst government officials at the provincial and district level about the risk and impact of fires.

Facilitate a participatory stakeholder led design of policy incentives and disincentives. The project supports integrated environmental and economic analysis based on an existing systems dynamics-based assessment tool (the Kalimantan Tengah Green Economy Model, or KT-GEM) for two initial districts, and an incentive/disincentive pilot will be designed. The outcomes are being used to inform national level policy makers on budgetary and planning implications through workshops and UNORCID dialogue activities.

Provide support for small scale fire prevention activities. To support innovation and strengthen learning on addressing fire prevention, small scale grants are provided to villages to initiate innovative approaches to address fire vulnerability in areas identified as highly vulnerable. GAMBUT Project is supporting the local government of Barito Selatan to test technically sound peat rehabilitation methods in Central Kalimantan to prevent further degradation, land subsidence and fire outbreaks which cause major haze related air pollution through canal blocking activities.

Technical Assistance: A key activity is to ensure that anticipatory fire management is mainstreamed in the budgeting process and fiscal policies. This is achieved by providing technical assistance, on an as-needed basis, to district and provincial-based stakeholders.

Building awareness through stakeholder engagement: activity is implemented to ensure adoption and use of the information generated by the FRS, with the aim of facilitating and promoting improved anticipatory fire management.

Enhance Fire Suppression: activity is implemented in Central Kalimantan to enhance the effectiveness of fire suppression and reduce fire brigades’ exposure to peat fires and haze. This is implemented by providing Personal Protective Equipment and Personal Protective Clothing to MPA members in 6 villages in Pulang Pisau District in Central Kalimantan. The MPA is also be trained on fire suppression by firefighting professionals.

7

At this point, there is no evidence which shows any adverse impacts to the environment has been identified for complated and ongoing activities. Detail mitigation and monitoring measures that needed for those activities are describe in Section 4 and 5 of this IEE.

3.  COUNTRY AND ENVIRONMENTAL INFORMATION

3.1 Locations Affected

Peat fire risks are not distributed evenly throughout the country, with the vast majority of them occurring in Kalimantan and Sumatra. GAMBUT will cover eight districts across Riau (Sumatra) and Central Kalimantan, as well as preliminary activities in West Kalimantan and Papua, targeting scoping and awareness raising exercises in these latter two areas. These target locations were chosen based on data on most fire prone districts as well as overlap with other USAID projects, specifically the former IFACS Project and the ongoing LESTARI project in Central Kalimantan, West Kalimantan and Papua. Target districts include:

- Riau Province: Bengkalis, Rokan Hilir, Siak and Dumai Districts: These districts are of strategic importance, as they comprise largely of peat land and are primarily located along the coast of Sumatra and are some of the most fire vulnerable districts in Indonesia. IPB and CU have previously been working specifically in Bengkalis District.

- Central Kalimantan Province: Kapuas, Pulang Pisau, Barito Selatan and Palangka Raya Districts: These areas have been significantly affected by the ex-Mega Rice project and now suffer from repeated peat fires.

- West Kalimantan: West Kalimantan is also a strategic location for the project due to the geographic location, and the biophysical and socio-economic dynamics its’ peat ecosystems.

- Papua: If nothing is changed, Papua appears to be heading in the same direction as Riau in terms of land use change and fire risk. In order to avoid following this downward trajectory GAMBUT will undertake exploratory work and awareness raising exercises in Papua.

In addition to specific activities targeted within these priority landscapes, GAMBUT will engage at the national level on governance, coordination, and evidence-based decision making. These national-level interventions are expected to influence fire risk reduction and risk-based land use planning and policy decisions across Indonesia.

3.2 National Environmental Policies and Procedures

Environmental Protection and Management Law (No. 32/2009)The Environmental Protection and Management Law of 2009 establish a framework for environmental planning, environmental impact analysis and licensing, and rights, responsibilities and penalties. Designed to supplant previous environmental legislation (No. 23/1997), the Law requires regional governments to formulate environmental protection and management plans (RPPLH) and to conduct strategic environmental assessments (KLHS) to be used as a basis for

8

regional development planning. It also stipulates that activities expected to have an impact on the environment are required to undergo an environmental impact analysis (AMDAL) or to develop an environmental management/environmental monitoring plan (UKL-UPL), depending on the nature of the activity, as a condition for obtaining an environmental license (izin lingkungan). An AMDAL is equivalent to an Environmental Impact Statement (EIS) by USG definition and is required following a Positive Determination in an IEE. Additional requirements for environmental license holders include mandatory, periodic environmental audits and the establishment of dedicated environmental remediation funds. The Law also includes provisions for the management of hazardous and toxic materials as well as hazardous and toxic waste. Rights of communities and NGOs to file legal claims regarding environmental pollution or damage are expanded under the Law, which also imposes harsher administrative and criminal penalties for violators. The implementation of Environmental Protection and Management Law of 2009 is governed by Ministry of Environment Regulation No. 5/2012 and No. 13/2010.

4.  EVALUATION OF POTENTIAL ENVIRONMENTAL IMPACTS

While development activities are intended to provide cross-sectoral and community-level natural resources management, when managed ineffectively they may cause adverse impacts that can offset or eliminate these intended benefits. Impacts can be direct, indirect, or cumulative.  They can also be beneficial or negative. The USAID Sector environmental guidelines at http://www.usaidgems.org/sectorGuidelines.htm offer a good resource in finding more information on potential impacts for various sectors.

GAMBUT components cover a broad range of interventions across the forestry, land use and governance sectors, including community-level natural resources management, and many of these interventions are not expected to have an adverse impact on the environment.  Certain activities proposed under the Program may, however, have impacts on the natural or physical environment if not designed and implemented using sound environmental principles.  These activities may include: spatial and land-use planning, small-scale construction activities designed to assist communities with peat fire prevention, such as interventions used to reroute, control, and collect water; assistance in agricultural practices such as small scale irrigation systems, alternative crops or cropping patterns, or modified land use patterns; peat forest or agricultural land rehabilitation and reforestation.

Program activities might also include policy development (to include fiscal incentives and/or reforms), such strengthening the capacity of relevant local government entities around fire risk reduction processes, and mainstreaming fire risk reduction measures into development planning and annual work plans of local and provincial governments. Potential negative environmental impacts from these activities may include increased human access/opportunity to exploit natural resources; degraded ground/surface water quality; generation of solid waste during construction; habitat disturbance/ degradation; and creation of perverse incentives for unsustainable practices.

9

There is no existing evidence that proves the canal blocking or any supporting fire prevention activities would make negative impact to the environment. However, UNOPS will keep monitor the implementation of ongoing activities in acoordance to the requirements that set in section 5.2 of this IEE.

5. RECOMMENDED THRESHOLD DECISIONS AND MITIGATION ACTIONS

5.1 Recommended Threshold Decisions and Conditions

Many of the GAMBUT activities described in Section 2.2 justify Categorical Exclusions, pursuant to 22 CFR 216.2(c)(1) and (2), for which an Initial Environmental Examination, or an Environmental Assessment are not required because the actions do not have an effect on the natural or physical environment.Specifically, as currently planned, such activities fall into the following classes of action:

(a) Education, technical assistance and training (216.2(c)(2)(i));(b) Analyses, studies, and workshops (216.2(c)(2)(iii));(c) Controlled experimentation exclusively for the purpose of research and field evaluation

which are confined to small areas and carefully monitored (22 CFR 216.2(c)(2)(ii));(d) Document and information transfer (216.2(c)(2)(v)); and(e) Activities that will develop the capability of recipient countries to engage in development

planning (216.2(c)(2)(xiv)).

As currently planned, none of the above actions are expected to directly affect the environment.

Pursuant to 22 CFR 216.3 (a)(2)(iii), a Negative Determination with Conditions is recommended for the following classes of activities: spatial and land-use planning, small-scale construction activities designed to assist communities with peat fire prevention, such as interventions used to reroute, control, and collect water; assistance in agricultural practices such as small scale irrigation systems , alternative crops or cropping patterns, or modified land use patterns; peat forest or agricultural land rehabilitation and reforestation. When implemented ineffectively they may cause adverse impacts that can offset or eliminate the intended benefits. Mitigating environmental impacts with these activities requires a participatory approach to activity/program design and management. Strong technical design of the projects is also critical. Irrigation or water management system for certain condition have been determined generally to have a significant effect on the environment, and an Environmental Assessment or Environmental Impact Statement, as appropriate, will be required, but in this case the project will limit the activity for only small scale system (see Annex 1).

According to government regulations from Ministry of Environment No. 5/2012 and No. 13/2010, small scale activities such as construction, irrigation, or water management system does not require Environmental Impact Analysis, if designed and implemented using sound environmental safeguards policy and procedures.

10

5.2 Mitigation, Monitoring, and Evaluation

The implementing organization for GAMBUT is the United Nations Office for Project Services (UNOPS).  UNOPS as part of the United Nations entity is a Public International Organization (PIO) and an approved PIO grant recipient partner of USAID.  UNOPS has long-established environmental assessment, monitoring and mitigation policies which meet the standards of those outlined by 22 CFR 216. Accordingly, the following are specific conditions to mitigate the potential negative impacts for respective sectors:

1. For activities that have the potential to result in significant adverse environmental, health, and safety impact, the UNOPS will exercise its own Environment, Health, and Safety Safeguards policy and procedures.

2. If at any time the activities are found to be out of compliance with those requirements, UNOPS will immediately notify the Assistance Officer’s Representative (AOR), who in turn will notify the USAID/Indonesia Mission Environmental Officer (MEO).

3. At least annually, UNOPS will report to the AOR/its alternate with a copy to the MEO, on the status of compliance of the UNOPS activities with those requirements, including any corrective and preventive actions that have occurred.

6. LIMITATIONS AND REVISIONS

6.1 Limitations

This IEE does not cover direct activities listed below, that: ● Normally have a significant effect on the environment under 22 CFR 216.2(d)(1);● Affect endangered species; ● Result in wetland or biodiversity degradation or loss; ● Support extractive industries (e.g. mining and quarrying); ● Promote timber harvesting; ● USAID Global Development Alliance (GDA) and Development Credit Authority (DCA)

program;● Provide support for regulatory permitting; ● Result in privatization of industrial or infrastructure facilities; ● Assist the procurement (including payment in kind, donations, guarantees of credit) or use

(including handling, transport, fuel for transport, storage, mixing, loading, application, clean up of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials and/or pesticides;

● Procure or use Genetically Modified Organisms (GMOs);● Introduce new species or varieties.

Any of these actions would require an IEE to be approved by the Bureau Environmental Officer (BEO).

6. 2 Revisions

If during implementation, project activities are considered outside of those described in this

11

document, an amendment shall be submitted. Pursuant to 22 CFR 216.3(a)(9), if new activities are added and/or information becomes available which indicates that activities to be funded by the project might be “major” and the project’s effect “significant,” this determination will be reviewed and revised by the AOR of the project, and submitted to the MEO and BEO for approval and, if appropriate, an environmental assessment will be prepared. This IEE shall also be amended when the funding level is increased beyond $250,000; and the LOP duration is extended beyond six months.

12

APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED By signing below, you approve the IEE Amendment#1 to Asia 15-078 PIO Grant to UNOPS for GAMBUT

CLEARANCE:

ENV: ________________________ Date: __________Matthew BurtonUSAID/Indonesia – Director Environmental Office

MEO: ________________________ Date: __________Putu KurniawanUSAID/Indonesia – Mission Environmental Officer

RLO: ________________________ Date: __________Betty ChungUSAID/Indonesia – Resident Legal Officer

REA: ________________________ Date: __________Christopher DegeUSAID/RDMA – Regional Environmental Advisor

DDIR: ________________________ Date: __________Ryan WashburnUSAID/Indonesia – Deputy Mission Director

DECISION OF USAID/INDONESIA MISSION DIRECTOR

APPROVAL:

DIR: ______________________ Date: __________Erin E. McKeeUSAID/Indonesia – Mission Director

13

DECISION OF THE ASIA BUREAU ENVIRONMENTAL OFFICER By signing below, you approve the IEE Amendment#1 to Asia 15-078 PIO Grant to UNOPS for GAMBUT

CONCURRENCE:

BEO: _____________________ Date: ___________William GibsonAsia Bureau Environmental Office

14

ANNEX 1

Limitation for Small Scale Irrigation and Water Management SystemAccordance with Government of Indonesia law from Ministry of Environment Regulation no.5/2012 about List of activities required Environmental Impact Analysis – similar with Environmental Impact Statement.

No Type of the activity Scale1 Dam construction or other

impoundmentsHeight ≥ 15 mCapacity ≥ 500.000 m3Area ≥ 200 ha

2 Irrigation System New system ≥ 3000 haAdditional system ≥ 1000 haRice field (in group) ≥ 500 ha

Note: below those limit, the project should simply prepare Environmental Management/ Environmental Monitoring Plan (UKL-UPL) – similar with Environmental Monitoring and Mitigation Plan (EMMP).

15