Message to the Asian Development Bank’s Board of Directors: Do not approve the Integrated Citarum Water Resource Management Investment Program until significant improvements and corrective measures are made.

 

Safeguard documents and project preparations do not comply with the ADB policies. Social risks can far outweigh the intended benefits of the proposed loans.

 

ADB enters into Citarum

The Citarum River is one of the most critical river basins in Indonesia. Located in the province of West Java, the basin extends over 13,000 square kilometers, which provides home and life to over 10 million people. It supplies about 80 percent of metropolitan Jakarta’s water needs, irrigates over 240,000 hectares of rice and other agricultural crops, and is the source of 1,400 MW of hydroelectric power.

 

Aiming to address the complex challenges in managing the Citarum water resources, the ADB is offering a package of assistance called Integrated Citarum Water Resource Management Investment Project (ICWRMIP). The proposed Program aims to promote integrated water resources and environmental management within the Citarum River basin that will address challenges to water conservation and allocation. ICWRMIP has many sets of projects that cover watershed management, agriculture, water supply and energy.

 

With over US$ 600 million financing, ICWRMIP is the first ADB project in Indonesia that uses the Multi-tranche Financing Facility (MFF), which will be rolled out over 10-15 years. The Bank has recently entered into an agreement with the Government of Indonesia (GoI) with the former providing loan, technical assistance and a grant to prepare and manage ICWRMIP. On December 4, 2008, the ADB’s Board of Directors is scheduled to approve the following projects whose funds constitute the bulk of ICWRMIP financing, namely:

  1. TA – Institutional Strengthening for Integrated Water Resources Management in the 6 Ci’s River Basin Territory
  2. MFF – Facility Concept: Multitranche Financing Facility – Integrated Citarum Water Resources Management Investment Program
  3. Loan – Integrated Citarum Water Resources Management Investment Program – Project 1

 

The Aliansi Rakyat untuk Citarum (ARUM) or Peoples Alliance for Citarum, a growing network of West Java and Jakarta civil society organizations, has been monitoring the project preparation of ICWRMIP since February 2008. It has engaged with the ADB’s project management, central government’s implementing agencies and local governments, and the communities who will be impacted by the Program. It has developed a collective assessment of ICWRMIP that identified the gaps in the draft Resettlement Plan of the Phase 1 based on ADB’s Involuntary Resettlement Policy. It also examined the soundness of integrated water resource management (IWRM), gender strategy and anti-corruption strategies of the ICWRMIP and the risks involved. The findings were based on fact finding missions, meetings with the ADB project management team, project document review, and in reference to relevant materials including the applicable ADB policies.

 

Resettlement Plan in the 1st ICWRMIP Loan – Project 1: Flawed, risky

The loan for Project 1 includes the rehabilitation of West Tarum Canal (WTC) as a sub-project. WTC is a 68.3 km long artificial waterway that diverts water from the Citarum River which is used as a vital source of water for irrigation, industries, and households in West Java and the metropolitan Jakarta. The total loan for this sub-project is US$50 million, which is a slice from the US$500 million program fund or “facility”.  

 

The rehabilitation of West Tarum Canal will displace 872 households and indirectly impact other residents in the three districts of West Java namely Kabupaten Karawang, Kabupaten Bekasi and Kota Bekasi. However, the Resettlement Plan (which remains draft up to this stage) has many serious flaws and poses high social risks. It does not comply with the ADB’s Involuntary Resettlement Policy and its implementing requirements.

 

 

Key Findings

On the draft Resettlement Plan

·        The estimated number of project affected peoples (resettled and host) is inadequate. It identified 872 households will be directly affected and displaced from their land but it has no clear benchmark and transparent process upon which affected persons that will be negatively impacted were determined. The direct and indirect affectees can be higher and the risks of excluding and marginalizing others from proper compensation and livelihood restoration are high. 

·        It does not have clear mechanism to address land scarcity and land acquisition issues for people to be displaced. It has no clear relocation program and no clear relocation site. It identified a privately owned land as possible relocation site but it does not guarantee legal protection to secure people’s access to and use of land.

·        There are no proper compensation, livelihood restoration and rehabilitation assistance measures. It will leave relocated people without clear options to restore or defend their livelihood.

·        It does not guarantee livelihood restoration to the affected people given the gaps in the assistance measures. The social preparation strategy is unclear and unacceptable.

·        The resettlement processes have not been clear and participatory.

 

On transparency and consultation practices

  • The public information disclosure has been inadequate. Many affected people, even the local officials, were not consulted. There were no prior information about the agenda and the disclosure of the concerns and outcomes in those consultations is very scant.

 

On gender, anti-corruption and IWRM,strategies

  • The resettlement plan has no clear and sound gender strategy vis-à-vis ADB’s gender policy. It has not conducted an in-depth assessment of the differential needs and impacts of the project to women, men and children. No initial poverty and social assessment has been disclosed either.
  • There is no anti-corruption framework in place for this Program. It does not have clear mechanism to prevent and combat corrupt practices in the project management at the local and national levels.
  • It has no empirical evidence that demonstrates any successful IWRM projects in Indonesia or in SEA. Yet, it is pushing for this strategy without paying attention to the issue of transaction costs of allocation such that it is not inclusive of different parties from the upper and downstream (having their differential power and competing claims in water allocation and resources) in the project management and decision making. In Indonesia, there have been recent controversies surrounding the creation of a river basin water board whose mandate cuts across the municipal and provincial boundaries, because some local governments refuse to have their authority in river management (inc. charging and collecting user fees) delegated to a river basin board as this will affect their local revenues. The ICWRMIP has no clear strategy how to address national and local conflicts over Citarum river management.
  • The rehabilitation of West Tarum Canal project fails to address the growing problems of farmers’ declining access to Citarum water to irrigate their rice fields due to significant increase of water allocated for industrial and drinking consumptions.

 

Conclusion

The project objectives are hardly met by the proposed methodologies. Serious flaws in the project design pose impoverishment and political risks that can be far higher than the expected benefits (which remain unclear). The draft resettlement plan of the Phase 1 projects does not have sound and clear mechanisms that ensure compliance with the Involuntary Resettlement Policy at the design and implementation stages. The lack of explicit, verifiable, monitorable and workable gender, anti-corruption and integrated water management strategies also pose high risks in terms of sparking or reinforcing vertical and horizontal conflicts in the project area. The resettlement plan and other safeguard preparation activities in the Project 1 have no strong guarantee that the directly affected people will be safeguarded. Also, what is more critical in sustaining water supply and and esuring equitable water allocation is the “rehabilitation” of the upstream Citarum and the integrative planning and decision making that encompasses the upstream and downstream stakeholders and communities, not the rehabilitation of West Tarum Canal.

 

It is questionable how ICWRMIP could address the fundamental challenge of promoting a proper, accountable and participatory governance of Citarum water resources. We believe that this proposed Program might result in incurring bad debt, burdening people with loans that do not help ensure their sustained access to Citarum river resources. ICWRMIP is an initiative designed largely by technocrats that may obstruct local governments and people’s initiatives in managing their common resources.

 

 

Our call

Since ICWRMIP has no strong and broad community and stakeholder support and given that the high impoverishment and political risks far outweigh the potential benefits (which remain unclear), at the maximum, the ADB Board should seriously consider pulling out from investing into the whole MFF-ICWRMIP unless a significant, meaningful and strongly and broadly supported re-assessment of the entire program is undertaken. If the Board proceeds with approving the whole MFF-ICWRMIP without such reassessment, it is a validation that they put legitimacy to the Program that clearly and seriously violates ADB’s safeguard policies and all relevant policies and operating procedures.

 

We urgently demand, among others, that the ADB Board should immediately postpone the approval of the MFF-ICWRMIP and the Phase 1 projects on December 4, 2008 until significant improvements in the project and corrective measures that comply with the bank’s policies, best practices and international standards are in place. Critical project documents should be disclosed and subjected to informed, inclusive and multi-stakeholder consultations, especially the directly and indirectly affected people.

Signatories:

 

  1. Diana Gultom, debtWATCH Indonesia– Indonesia
  2. Arimbi Heroepoetri, Environmental Law Alliance Worldwide (ELAW Indonesia) – Indonesia
  3. Hamong Santono, Koalisi Rakyat untuk Hak Atas Air (KRuHA) – Indonesia
  4. Dadang Sudardja, Aliansi Rakyat untuk Citarum (ARUM) – Indonesia
  5. Novita Merdriana Tantri, Perkumpulan Boemi-Indonesia
  6. Jefry Rohman, Pusat Sumber Daya Komunitas (PSDK), Bandung-Indonesia
  7. Koalisi Ornop Jawa Barat, Indonesia
  8. Ogie, WALHI Jawa Barat, Indonesia
  9. Siti Fatimah, Bandung Institute of Governance Studies (BIGS)- Indonesia
  10. Huyogo Gabriel Yohanes Simbolon, Ikatan Mahasiswa Ilmu Komunikasi Indonesia, West Java, Indonesia
  11. Amrullah, elKAIL, Bekasi-Indonesia
  12. Berry Nahdian Forqan, WALHI Eksekutif Nasional/ Friends of the Earth Indonesia, Indonesia
  13. Syamsul Ardiansyah, INDIES, Jakarta-Indonesia
  14. Andiko, Perkumpulan untuk Pembaharuan Hukum berbasis Masyarakat dan Ekologis (HUMA), Jakarta, Indonesia
  15. Farah Sofa, Ketua Badan Pengurus INFID, Indonesia
  16. Fabby Tumiwa, Institute for Essential Service Reform (IESR) – Indonesia
  17. Chris Wangkay, Gerakan Aliansi Rakyat untuk Penghapusan Utang (GARPU) – Indonesia
  18. Jimmy Pandjaitan, Konservasi Alam dan Lingkungan Hidup (KALI), Sumatra Utara – Indonesia
  19. Adzkar Ahsinin, Yayasan Pemantau Hak Anak(YPHA) – Indonesia
  20. Chabibullah, Serikat Tani Merdeka (SETAM), Yogyakarta-Indonesia
  21. Imam Cahyono, Perkumpulan Prakarsa, Indonesia
  22. Abetnego Tarigan, Sawit Watch-Indonesia
  23. Beka Ulung Hapsara, Perguruan Rakyat Merdeka (PRM)-Indonesia
  24. Dede K, Kabut Riau-Indonesia
  25. Estu Fanani, LBH Apik Jakarta-Indonesia
  26. M. Teguh Surya, WALHI Eksekutif Nasional-Indonesia
  27. Wawan Suwandi, KOAGE-Indonesia
  28. Mohammad Djauhari, KpSHK, Bogor-Indonesia
  29. Shaban Setiawan, WALHI-Kalimantan Barat-Indonesia
  30. Ari Sunarijati, Bupera, FSPSI Reformasi-Indonesia
  31. Tubagus Haryo Karbyanto, FAKTA-Indonesia
  32. Ahmad Zazali, Scale Up-Indonesia
  33. Sulaiman Zuhdi Manik, Pusat Kajian dan Perlindungan Anak (PKPA), Aceh-Indonesia
  34. Muhamad Usman, Yayasan Sanak-Jambi-Indonesia
  35. Ika Kartika Dewi, Koalisi Perempuan Indonesia (KPI), Jakarta-Indonesia
  36. Athoillah, Lembaga Bantuan Hukum (LBH), Surabaya-Indonesia
  37. Feri Irawan, Dewan Nasional WALHI-Indonesia
  38. Yohanna T. Wardhani, LBH Apik Jakarta, Jakarta-Indonesia
  39. Siti Maemunah, Jaringan Advokasi Tambang (JATAM)-Indonesia
  40. Sarah Lery Mboeik, PIAR-Indonesia
  41. Dewi Rana Rasyidi, Lingkar Belajar untuk Perempuan, Palu-Indonesia
  42. Masruchah, Sekretariat Nasional Koalisi Perempuan Indonesia (KPI)-Indonesia
  43. Kencana, KePPak Perempuan-Indonesia
  44. Dahniar, Perkumpulan Bantaya, Palu-Indonesia
  45. Ahmad Syarifudin, Environmental Task Force-Indonesia
  46. Irfan, Yayasan Kapeta-Indonesia
  47. Roman Ndau Lendong, Inspra, Flores, NTT-Indonesia
  48. Caroline Pintauli, Bina Insani, Sumatera Utara-Indonesia
  49. Ema, Institute of Community Justice, Makasar-Indonesia
  50. Supartono, KIKIS-Indonesia
  51. Mohamad Hamdin, Yayasan Tanah Merdeka, Palu-Indonesia
  52. Marthen Salu, Lembaga Advokasi Hukum dan HAM, Atambua-Indonesia
  53. Nur Hidayati, CSF-Indonesia
  54. Hanni Adiati, CSF- Indonesia
  55. Max Binur, Belantara Papua, Sorong-Indonesia
  56. Azas Tigor Nainggolan, FAKTA-Indonesia
  57. Mamiek,  Lembayung Institute, Jakarta-Indonesia
  58. Tri Chandra Aprianto, Fakultas Sastra, Universitas Jember-Indonesia
  59. Egi Neobeni, Yayasan Kiper-HAM, Flores-Indonesia
  60. Nedhy Priscilla, YKMF, Flores, Indonesia
  61. Yayasan Kebudayaan Masyarakat Adat (Yakema) Maumere-Indonesia
  62. Chalid Muhammad, Institut Hijau Indonesia-Indonesia
  63. Alfina Mustafainah, Koalisi Perempuan Indonesia (KPI) Sulawesi Selatan-Indonesia
  64. Midaria Novawanty, KIARA-Indonesia
  65. Dwi Astuti, Bina Desa, Indonesia
  66. Risma Umar, Solidaritas Perempuan-Indonesia
  67. Titi Suntoro, NADI-Indonesia
  68. Indri, Semarak Cerlang Nusa (SCN)-Indonesia
  69. Saifuddin Gani, SH, SBSS&Partners Lawfirm, Banda Aceh-Indonesia
  70. Koesnadi Wirasapoetra, Sarekat Hijau-Indonesia
  71. Khalisah Khalid, Sarekat Hijau Indonesia
  72. Rian, Setara, Jambi, Indonesia
  73. Nila Ardhianie, AMRTA Institute, Indonesia
  74. Bowo Usodo, Jaringan Radio Komunitas-Indonesia
  75. Adi Rusprianto, Serikat Buruh Indonesia
  76. John Pluto Sinulingga, Bina Desa Sadajiwa, Meulaboh, Aceh Barat-Indonesia
  77. Budiman Maliki, LPMS, Poso-Indonesia
  78. Gustav Dupe, Perhimpunan Pelayanan Penjara
  79. Yayasan Pendidikan dan Swadaya Indonesia
  80. Forum Komunikasi Kristiani, Jakarta, Indonesia
  81. AD Eridani, Yayasan Rahima, Indonesia
  82. Eri Andriani, Forum Refleksi Emansipasi Jember, Indonesia
  83. Didi Novrian, SAINS (Sajogyo Institute), Bogor, Jawa Barat, Indonesia
  84. Budi Laksana, Kelompok Nelayan Cirebon, Jawa Barat, Indonesia
  85. Gunawan, Indonesian Human Rights Committee for Social Justice-Indonesia
  86. Ella Uran, Yayasan Komodo Indonesia Lestari (YAKINES), Labuan Bajo, Manggarai Barat, Flores, Nusa Tenggara Timur- Indonesia
  87. Ferdy M. Manu, Yayasan Komodo Indonesia Lestari (YAKINES), Nusa Tenggara Timur- Indonesia
  88. Dian Pratiwi P, Kediri Bersama Rakyat (KIBAR), Jawa Timur, Indonesia
  89. Baya, SETARA, Jambi- Indonesia
  90. Wahyu, Serikat Petani Indonesia (SPI), Indonesia
  91. Wildasari, Koalisi Anti Utang (KAU), Indonesia
  92. John Erryson, Forum Tanah Air, Indonesia
  93. Sutrisno, Serikat Buruh Indonesia- Indonesia
  94. Erpan Faryadi, Aliansi Gerakan Reforma Agraria (AGRA), Indonesia
  95. Widji Sri Rahayu, Solidaritas Perempuan Jabodetabek- Indonesia
  96. Ridwan Darmawan, Indonesian Human Rights Committee for Social Justice-Indonesia
  97. Idham Arsyad, Konsorsium Pembaruan Agraria, Indonesia
  98. Rahma, LBH Semarang, Indonesia
  99. Yeni Roslaini Izi, Women’s Crisis Centre, Palembang, South Sumatera, Indonesia
  100. Musri Nauli, Yayasan Keadilan Rakyat, Jambi, Indonesia
  101. Lusia Palulungan, LBH APIK Makassar, South Sulawesi- Indonesia
  102. Rena Herdiyani, Kalyanamitra, Jakarta-Indonesia
  103. Adnan Balfaz, Komisi Orang Miskin Indonesia untuk Keadilan (KOMIK)- Indonesia
  104. Azmar Exwar, Jurnal Celebes, Makassar-Indonesia
  105. Herdianto, Bohotokong Generasi Muda-X-Onderneming, Central Sulawesi, Indonesia
  106. Sugeng, Himpunan Petani Organik Banyumas (HIPORMAS), Central Java, Indonesia
  107. Rukiyah, SPN-SU (Serikat Perempuan Nelayan Sumatera Utara), North Sumatera- Indonesia
  108. Ali Azhar Akbar, ELAW Indonesia- Indonesia
  109. Firman, Jaringan Kerja Bumi, Makassar- Indonesia
  110. Gustaf George, Pro Era Media Suara Komunitas Agraris (PERETAS), Central Sulawesi, Indonesia
  111. Ismar Indarsyah, Liga Mahasiswa Nasional untuk Demokrasi (LMND), Indonesia
  112. Dani Setiawan, Koalisi Anti Utang, Indonesia
  113. Tasnim Yusuf, YSIK-Indonesia
  114. Datuk Usman Gumanti, Aliansi Komunitas Adat, Jambi- Indonesia
  115. Hariansyah Usman, Jikalahari, Riau- Indonesia
  116. Zohra Andi Baso, Forum Pemerhati Masalah Perempuan, South Sulawesi- Indonesia
  117. Yayasan Lembaga Konsumen, Sulsel-Indonesia
  118. Yayasan Lembaga Bantuan Hukum Indonesia (YLBHI)- Indonesia
  119. Abdul Gofur, GAPPRI, Indonesia
  120. Sudarno, Perserikat Rakyat, Jakarta-Indonesia
  121. Serikat Nelayan Merdeka (SNM), Sumatera Utara- Indonesia
  122. Serikat Buruh Kebun (SERBUK), Serdang Bedagai, Sumut- Indonesia
  123. Isal Wardhana, WALHI Kalimantan Timur- Indonesia
  124. Beauty Erawati, LBH APIK NTB- Indonesia
  125. INNA, Jaringan Indonesia Timur, Indonesia
  126. Ismar Indarsyah, LMND, Indonesia
  127. Ari, FISIP USU, Sumatera Utara, Indonesia
  128. Sri Murtopo, Front Perjuangan Pemuda Indonesia, Indonesia
  129. Iswan Kaputra, BITRA Indonesia- Indonesia
  130. Himpunan Mahasiswa Islam KOM FISIP Universitas Sumatera Utara- Indonesia
  131. Syafrudin Ali, Front Perjuangan Rakyat Miskin, Indonesia
  132. Agus Arifin, Solidaritas Buruh Sumatera Utara, Indonesia
  133. Shabri Abdul Rahman, Komite Aksi Mahasiswa Muslim Indonesia Universitas Sumatera Utara, Indonesia
  134. Anto, Serikat Buruh Carrefour Medan (SBCM-SBSU), Sumatera Utara, Indonesia
  135. Abdul Sani, SBCM-SBSU, Indonesia
  136. Bambang, SBCM-SBSU, Indonesia
  137. Boy Dirgantara, SBCM-SBSU, Indonesia
  138. M. Fadli Siregar, Ketua SBCM-SBSU, Indonesia
  139. Ganda, Ketua SBCM-SBSU, Indonesia
  140. Winston Rondo, Perkumpulan Relawan CIS Timor, Indonesia
  141. Rahwanto, Himpunan Mahasiswa Islam UMSU, Sumatera Utara, Indonesia
  142. Maharani Caroline, LBH Menado, North Sulawesi, Indonesia
  143. Desmiwati, Manager Region Jawa Kalimantan WALHI Eksekutif Nasional, Indonesia
  144. Desiana, PP PMKRI, Indonesia
  145. Baginda, Serikat Buruh Medan Independen Sumatera Utara (SBMI-SUMUT), Indonesia
  146. Johny Setiawan Mundung, WALHI Riau, Indonesia
  147. JAPESDA (Jaringan Advokasi Pengelolaan Sumber Daya Alam), Indonesia
  148. HIMBUNGA (Kelompok Kerja untuk Perdamaian), Indonesia
  149. Ulfah Mutiah Hizma, Yayasan Rahima, Indonesia
  150. Ririn Sefsani, Commitment Democratic Governance and Social Justice, Solo, Indonesia
  151. Dwi Ayu Kartikasari, Komunitas Anti Globalisasi Ekonomi, Indonesia
  152. SARI, Solo, Indonesia

 

International

  1. Chad Dobson, Bank Information Center (BIC), USA
  2. NGO Forum on ADB, Manila
  3. Milo Tanchuling, Freedom from Debt Coalition, Philippines
  4. Prabin Man Singh, Collective Initiative for Research and Action (CIRA), Nepal
  5. Zakir Kibria, BanglaPraxis (Bangladesh)
  6. Janaka, Green Movement of Srilanka, Srilanka
  7. Charles Santiago, Monitoring Sustainability of Globalization-MSN, Malaysia
  8. Vimalbhai, Matu Peoples’ Organization, India
  9. Wilfred Dcosta, Indian Social Action Forum – INSAF, India
  10. Souparna Lahiri, National Forum of Forest People & Forest Workers, India
  11. Water & Energy Users’ Federation-Nepal (WAFED), Nepal
  12. Himalayan & Peninsular Hydro-Ecological Network – HYPHEN
  13. Nepal Policy Institute – NPI, Nepal
  14. Ekoloji Kolektifi Türkiye
  15. Gaye Yilmaz, Platform “No to commercialization of water”, Turkey
  16. Acacia Rose, Alpine Riverkeepers Australia, Australia
  17. Sarah Siddiqi, citizens’ alliance in reforms for equitable and efficient development, Pakistan

 

Akademisi

  1. Benny D Setianto, Post Graduate Program on Environment and Urban Studies Soegijapranata Catholic University-Indonesia
  2. Tri Chandra Aprianto, Fakultas Sastra, Universitas Jember-Indonesia
  3. Wijanto Hadipuro, Post Graduate Program on Environment and Urban Studies Soegijapranata Catholic University- Indonesia
  4. Hotmauli Sidabalok, Post Graduate Program on Environment and Urban Studies Soegijapranata Chatolic University-Indonesia

 

Individu

  1. Yulia Siswaningsih, Jakarta, Indonesia
  2. Adhi Prasetyo, Jakarta, Indonesia
  3. Anik Wusari, Jakarta, Indonesia
  4. Tandiono Bawor Purbaya, Jakarta, Indonesia
  5. Siti Aminah, Jakarta, Indonesia
  6. Syafruddin K., Donggala
  7. Boedhi Widjarjo, Jakarta Indonesia
  8. I Wayan Suwardana
  9. Dete Aliyah, Jakarta, Indonesia
  10. Hedar Laudjeng, Palu, Indonesia
  11. BJD. Gayatri, Jakarta, Indonesia
  12. Bambang Budiono, Jawa Barat, Indonesia
  13. Ratna Yunita, Jakarta, Indonesia
  14. Latief Madafaku, Dompu, Indonesia
  15. Husnaeni Nugroho, Indonesia
  16. Jevelina Punuh, Indonesia