REQUEST FOR CATEGORICAL EXCLUSIONINITIAL ENVIRONMENTAL EXAMINATION (IEE)

IEE Amendment #5 to Asia 15-060 for Democratic Governance Project

PROGRAM/ACTIVITY DATA

Development Objective (DO) DO1 – Democratic Governance and Security Strengthened

Country Indonesia

Title Democratic Governance (DG) Project

Life-of-Project (LOP) Duration June 1, 2015 – March 15, 2024

LOP Funding $105,950,000

Current Date July 31, 2018

Prepared byLuthfi Ashari

Governance, Rights, and Resilience (GRR) - USAID/Indonesia

IEE Amendment (Y/N):  Yes

Original: Asia 15-060 dated May 15, 2015 link https://ecd.usaid.gov/repository/pdf/43241.pdfAmendment #1: Asia 17-049 dated April 11, 2017 link https://ecd.usaid.gov/repository/pdf/50017.pdfAmendment #2: Asia 17-084 dated September 8, 2017 link https://ecd.usaid.gov/repository/pdf/50343.pdfAmendment #3: Asia 18-010 dated October 10, 2017 link https://ecd.usaid.gov/repository/pdf/50556.pdfAmendment #4: Asia 18-045 dated April 10, 2018 link https://ecd.usaid.gov/repository/pdf/50832.pdf

ENVIRONMENTAL ACTION RECOMMENDED: Categorical Exclusion:   [X]    Negative Determination with Conditions:   [ ]   Positive Determination: [   ]    Deferral:                                         [   ]

CLIMATE VULNERABILITY RISK RECOMMENDED: Low risk: [X ]          Medium risk:   [ ]                 High risk:         [   ]  

1. Purpose and Scope of Amendment

The purpose of this amendment is to:

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● add the Civil Society Sustainability Initiative (CSSI) activity, a five-year program with a

$18,000,000 funding level, under the scope of this IEE;

● remove the line for the People to People (P2P) Peacebuilding activity from the scope of this IEE;

● increase the HARMONI ceiling from $27,500,000 to $29,800,000;

● increase the overall LOP funding of this IEE from $87,250,000 to $105,950,000; and

● extend the LOP duration from September 30, 2002 to March 15, 2024

The scope and nature of all other activities as approved in the original IEE (Asia 15-060), amendment #1 (Asia 17-049), amendment #2 (Asia 17-084), amendment #3 (Asia 18-010), and amendment #4 (Asia 18-045) remain the same.

Summary of Findings:

Under amendment #5, IEE Asia 15-060 now includes five activities under the scope of the DG Project. The total estimated funding for all activities is $105,950,000.  The main activities are:

● Government Accountability Flagship activity - CEGAH;

● Protection of Citizen Rights activity - MAJU;

● Eastern Indonesia Gender Based Violence (GBV) Prevention activity - BERSAMA;

● Countering Violent Extremism (CVE) activity – HARMONI; and,

● Civil Society Sustainability Initiative (CSSI) activity.

A Categorical Exclusion is recommended for activities under the DG Project for CEGAH, MAJU, BERSAMA, HARMONI, and CSSI which provide technical assistance and training and will not have direct or indirect impact on the natural or physical environment.  Those activities are accorded a Categorical Exclusion 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.

As the result of Climate Risk Management screening, a Low Risk is recommended for activities under the DG Project for CEGAH, MAJU, BERSAMA, HARMONI, and CSSI which in majority provide technical assistance and training in national and local level. Low risk indicates climate change is unlikely to affect achievement or sustainability of project or activities outcomes.

Update:

The original IEE Asia 15-060 was first amended by Asia 17-049. The amendment increased the funding level of MAJU from $7,500,000 to $10,000,000; extended the funding end date of the BERSAMA from

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September 30, 2020 to June 30, 2021; extended the IEE LOP overall duration from January 31, 2021 to June 30, 2021; increased the LOP funding of the IEE from $48,800,000 to $51,300,000; and changed the environmental action to only a Categorical Exclusion.

The second amendment by IEE Asia 17-084 was requested specifically to incorporate potential activities focused on CVE as a new key priority for BERSAMA, MAJU, and P2P, not only for security sector but for development as well. This amendment increased the LOP funding of the IEE from $51,300,000 to $59,750,000.

The third amendment by Asia 18-010 was requested to incorporate the HARMONI activity, as stand-alone CVE program under the scope of this IEE, and to increase the LOP funding from $59,750,000 to $79,750,000.

This fourth amendment was requested to increase the ceiling of the HARMONI activity from $20,000,000 to $27,500,000, and therefore increased the LOP duration from $79,750,000 to $87,250,000.

The fifth amendment is requested to incorporate the CSSI activity under the scope of this IEE. This initiative will directly contribute to achieving USAID/Indonesia’s (Amended) Development Objective #1 for “Democratic and Governance Security Strengthened”. The CSSI is designed as a five-year activity with a funding level up to $18,000,000. In addition, the line for the People to People (P2P) Peacebuilding activity with funding level up to $1,600,000 is removed from the scope of this IEE because the Mission was not successful in acquiring additional funds for this activity and in the line for HARMONI increases the ceiling of the HARMONI $2,300,000 from $27,500,000 to $29,800,000 As the result, the LOP funding of this IEE will increase from $87,250,000 to $105,950,000.

2. Background and Description of Activities

2.1 Background

UNDP1 defines civil society as a third sector existing alongside and interacting with the state and private industry. In practice civil society is an arena of both collaboration and contention. Further, CIVICUS2 defines CSO as the arena outside the family, the state, and the market, which is created by individual and collective actions, organizations, and institutions to advance shared interests. Falling under this definition CSOs are NGOs, faith-based organizations, and community-based organizations; online groups and activities; social movements of collective action and/or identity; and social entrepreneurs employing innovative and/or market-oriented approaches for social and environmental outcomes.

CSOs play a catalytic role in channeling citizen voices. They are on the front lines of promoting and strengthening democratic processes, including elections, oversight of government accountability and protection of human rights. CSOs have proven their valuable role as a watchdog and representative of

1 “A Guide to Civil Society Organizations Working on Democratic Governance”, UNDP (2005)2 “CIVICUS’s 2013 Enabling Environment Index”, CIVICUS, 2013; “A Guide to Civil Society Organizations. Working on Democratic Governance”, UNDP, 2005.

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citizen interests. A major example of the civil society role in combating corruption in Indonesia occurred in 2013 when the anti-corruption movement and the crusading Corruption Eradication Commission (KPK) in particular, came under direct attack from entrenched interests opposing reform. In response, CSOs organized a public campaign to defend the KPK’s anti-corruption role. The resultant rise in public support orchestrated by CSOs saved the KPK.

As Indonesia currently faces an emerging global challenge of growing intolerance and radicalism, CSOs have once again proven their value as pillars of a democratic society. In addition to advocating for inclusion of stronger human rights perspectives in the revision of the law on terrorism, CSOs have been working tirelessly to increase citizen awareness on the dangers of radicalism, while promoting the virtues of a tolerant culture. Decentralization in Indonesia serves both to promote democratization and improve the delivery of public services. The decentralization policy encourages citizen engagement as well as requires strong government service delivery. Unfortunately, a lack of local government capacity and poor accountability threaten decentralization efforts. There is a stark need for Indonesian citizens and CSOs to stand up and engage at the local level to make democracy deliver for them. In line with this decentralization, in 2014 GOI passed the Village Law, allowing increased funding for village development. Despite the noble intentions of the law, accountability remains a problem and weak accountability mechanisms are posing a threat to democracy. Greater devolution of authority combined with a lack of oversight from citizens tends to enable fraud and the misuse of power. Therefore, strong CSOs are crucial to safeguard development outcomes at the district level. Previously, the DG Project encompasses six mechanisms, as follows:

● Human Right Grant Program activity - HRGP (Fixed Amount Agreement) which started

on June 1, 2015 as the first mechanism implemented under DG Project (Note: This activity has been completed on November 2016 and excluded from the scope of IEE Asia 15-060 since the Amendment #3);

● Government accountability flagship activity - CEGAH (Contract);

● Protection of Citizen Rights activity - MAJU (Cooperative Agreement);

● Eastern Indonesia Gender-Based Violence Prevention activity - BERSAMA (Cooperative

Agreement);

● P2P Peacebuilding activity (Note: this activity is removed from the scope of this IEE);

and,

● Countering Violent Extremism activity - HARMONI (including to incorporate new CVE

components under CEGAH and MAJU).

As the result of FY17 budget approval process, GRR Office is planning CSSI activity as discussed in the DG Project PAD Amendment #2 that was approved on May 16, 2018. Incorporation of the CSSI Program will allow USAID/Indonesia to address civil society capacity gaps and sustainability issues in Indonesia. The initiative will strengthen democratic consolidation by improving the representative and

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watchdog functions played by CSOs, particularly at the local level. In this regard, activities under the CSSI program will directly contribute to achieving USAID/Indonesia’s Development Objective #1 (“Democratic Governance and Security Strengthened”).

2.2 Description of the CSSI Activity

The initiative will focus on civil society at the district level to contribute constructively to decentralized local government. Focus will be given to enhance local accountability and tolerance to overcome radicalism. Emphasis will be given to address capacity and sustainability of CSOs. This initiative will work with both formal and informal CSOs.

The initiative will support activities to promote local government accountability and societal tolerance, as well as key issues in sectors such as health, education and the environment. The initiative will seek to engage youth, and build sustainable, Indonesian-led and -owned pathways to identify, cultivate, network and strengthen the next generation of civic leaders. For the program to be successful, this program requires commitment from district partners, including local government officials.

Theory of change: “If the organization and technical capacity of civil society groups at the local level increases and the enabling environment for CSOs is increased, then Indonesia civil society can effectively serve as watchdog and advocates for citizen interests at the local level”.

Figure 1 The program result framework.

Illustrative activities include:● Training of trainers and/or cascade-based training around sector-specific issues (for

example, Village Law, local budget, etc.);● Training for community groups on how to access, interpret, and ask questions about the

local budget (budget literacy);● Ethics trainings and tools for CSOs;

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● Drafting and implementation of codes of conduct for community-based organizations;● Organizational development workshops, self-assessments, trainings, focused on key topics

such as: financial management, strategic planning, human resource management;● Volunteerism initiatives (local internships);● Horizontal networking to link local CSOs and civic leaders from diverse geographical

regions, in order to strengthen capacity and amplify advocacy efforts around issues of accountability and tolerance;

● Vertical networking between national CSOs and local community-based organizations, in order to facilitate transfer of knowledge and know-how to local levels; and,

● Fundraising activities with local private sector, religious institutions, philanthropic bodies, government, and communities.

Anticipated results include:● Increased ability of community-based civil society to serve as a watchdog over local

budget expenditures;● Increased integrity and accountability of local CSOs;● Better-managed financial and operations of local CSOs● Greater sustainability of local CSOs, including leadership regeneration; ● Stronger engagement of local youth with civil society;● Growth in local resource mobilization for civil society - volunteers, financial

contributions, and in-kind contributions;● Stronger, legitimate local voices in support of tolerance and diversity in Indonesia; and,● Increased interest in, competence on, and influence of youth groups in civic affairs.

3. Justification for Categorical Exclusion

The activities included in the Democratic Governance Project cover a broad range of interventions, none of which are expected to have impacts on the environment. The 22 CFR 216.2 provides for classification and determination of the potential environmental effects of USAID funded activities, and in selected cases for Categorical Exclusions from these requirements. Democratic Governance activities for which a Categorical Exclusion is accorded include:

● education, technical assistance, or training programs;● analyses, studies, academic or research workshops and meetings;● documents and information transfers; and,● studies, projects or programs intended to develop the capability of recipient countries to

engage in development planning.

The table 1 summarizes the recommended threshold decisions for activities covered under this Democratic Governance Project IEE.

Table 1 Recommended threshold decision for all activities under Democratic Governance Project.

Mechanism Implementation Projected Project Location Environmental Environmental Class of

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Name

Period Total Award Threshold Recommendati

on

Action

CEGAH May 31, 2016

to

May 30, 2021

$37,400,000 National level, Maluku, North Maluku, West Papua, and Papua

Categorical

Exclusions

● education, technical

assistance, or training programs;

● analyses, studies,

academic or research workshops and meetings;

●documents and

information transfers; and,

● studies, projects or

programs intended to develop the capability of recipient countries to engage in development planning

MAJU March 14, 2016

to

March 13, 2021

$13,350,000 National level, Maluku, North Maluku, West Papua, and Papua

Categorical

Exclusions

BERSAMA June 30, 2016

to

June 30, 2021

$7,400,000 National level, Maluku, North Maluku, West Papua, and Papua

Categorical

Exclusions

HARMONI October 1, 2018

to Sept 30, 2022

$29,800,000 National and Local Level Categorical

Exclusions

CSSI March 16, 2019

to March 15, 2024

$18,000,000 National and Local Level Categorical

Exclusions

Total $105,950,000

As part of monitoring strategy, the Mission Environmental Officer (MEO) may conduct spot check in coordination with A/CORs to verify whether the conditions on the field already in accordance with the scope of this IEE.

4. Climate Vulnerability Risk

The Climate Risk Management screening conducted for the potential activities under CSSI are categorized as low risk for climate change impacts (see Table 2). Low risk indicates climate change is unlikely to affect achievement or sustainability of the project or activity outcomes since most of the activities will be conducted at safe locations (such as government buildings, CSO offices, community-meeting points, etc.) and will be less affected by climate change. The climate stressor that may affect the implementation of those activities is high precipitation that may occur in some targeted locations. It may interrupt the implementation of the technical assistance and training, especially if flooding occurs. In those cases, the implementer will reschedule events to other times, sessions or move to safer locations.

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Table 2 Climate risk screening for CSSI Activity.

5 Limitation and Revision

5.1 Limitation

This IEE does not cover activities involving the following:1. Activities that normally have a significant effect on the environment under 22 CFR 216.2(d)(1); 2. Assistance, procurement or use of genetically modified organisms (GMOs), which will require

preparation of a biosafety assessment  and review in accordance with ADS 201.3.11.2(b);3. Activities involving small-scale construction or rehabilitation works;4. Activities for the procurement, use or recommendation for use of pesticides or activities

involving procurement, transport, use, storage, or disposal of toxic materials;

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5. Activities involving support to wood processing, agro-processing, industrial enterprises, and regulatory permitting;

6. USAID Development Credit Authority (DCA) or Global Development Alliance (GDA) programs;

7. Procurement or use and/or disposal of Asbestos Containing Materials (ACM) (i.e. piping, roofing, etc.), Polychlorinated Biphenyls (PCB) or other hazardous/toxic materials for construction projects;

8. Procurement, use and/or disposal of equipment containing and/or generating low-level radioactive materials and wastes; and,

9. Direct or/indirect funding to any livelihood activities under HARMONI Activity that intended to improve economy level and welfare of ex-convicts and deportees.

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

5.2 Revision

If during implementation, project activities are considered outside of those described in this IEE, an amendment to the IEE shall be submitted. Pursuant to 22 CFR 216.3(a)(9), if new information becomes available which indicates that activities to be funded by the Democratic Governance Project might be "major" and their effect "significant," this Threshold Decision will be reviewed and revised by the cognizant operating unit and submitted to the BEO/Asia for approval and, if appropriate, an Environmental Assessment will be prepared.  This IEE shall also be amended when the funding levels is increased beyond $250,000 and the LOP is extended beyond 6 months.

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APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED

CLEARANCE:

GRR:   _______cleared ___________ Date: August 16, 2018        Anders Mantius        USAID/Indonesia – Acting Governance, Rights, and Resilience Office Director

MEO:   _______cleared ___________ Date:August 20, 2018        Putu Kurniawan        USAID/Indonesia – Mission Environmental Officer 

RLO:   _______cleared ___________ Date: August 23, 2018        Ying Hsu        USAID/RDMA – acting Resident Legal Officer 

REA:   _______cleared ___________ Date: August 24, 2018        Mark Childerhose        USAID/RDMA – Regional Environmental Advisor

DDIR: _______cleared____________ Date:September 13, 2018        Ryan Washburn         USAID/Indonesia – Deputy Mission Director

DECISION OF USAID/INDONESIA MISSION DIRECTOR:By signing below, you approve the IEE Amendment #5 to Asia 15-060 for Democratic Governance Project

APPROVAL:

DIR: ______________________ Date: __________        Erin McKee         USAID/Indonesia – Mission Director

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DECISION OF THE ASIA BUREAU ENVIRONMENTAL OFFICER:

By signing below, you approve the IEE Amendment #5 to Asia 15-060 for Democratic Governance Project

CONCURRENCE:

BEO: _____________________ Date: ___________        William Gibson        Asia Bureau Environmental Officer

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