Makassar Tallo River Area Development Pre-Feasibility Final Report A4

Makassar Tallo River Area Development Pre-feasibility Study
Final Report
Document Version 3
August 2013
Final Report
Document Quality Information

General information
Author(s) Project name Document name Date Reference Owen Makassar Tallo River Area Development Pre-feasibility Study Final Report August 2013
Addressee(s)
Sent to: Name Santo Dewatmoko Organisation World Bank Jakarta Sent on (date): 23 August 2013
Copy to: Name Arnault Thery Organisation Egis Jakarta Participants of final workshops in Makassar and Jakarta Sent on (date): 23 August 26 August
History of modifications
Version 1 2 3 Date 19 August 21 August 23 August Written by Owen Owen Owen Description of Changes Draft for internal discussion Second Draft for internal discussion Final for presentation in Makassar and Jakarta
Document Version 3
Makassar Tallo River Area Development Prefeasibility Study
Final Report
Table of Contents
Table of Contents............................................................................................................i Currency Equivalents ..................................................................................................... ii Abbreviations and Acronyms ......................................................................................... ii 1 - STRATEGIC CONTEXT .......................................................................................... 1
1.1. 1.2. 1.3. 1.4. Overview ........................................................................................................................... 1 Country Context ................................................................................................................ 1 City Context ....................................................................................................................... 2 Introduction to this Report ................................................................................................. 5
2 - PROJECT DESCRIPTION ...................................................................................... 7

2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. Declaring a project area .................................................................................................... 7 Development Strategy ....................................................................................................... 8 Description of the existing situation ................................................................................. 11 Defining project components ........................................................................................... 14 Project Components and the role of World Bank in each ................................................ 15 Estimation of World Bank Project Costs .......................................................................... 35 Alternatives Considered for World Bank Loan support and Reasons for Rejection ......... 35
3 - IMPLEMENTATION ARRANGEMENTS ............................................................... 39

3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Overview and timing of arrangements ............................................................................. 39 Urban development arrangements .................................................................................. 40 Kecamatan and Kelurahan management improvements................................................. 41 Civil Society arrangements .............................................................................................. 43 Land management arrangements ................................................................................... 44 Implementation Arrangements for the Word Bank Project .............................................. 47 Sustainability ................................................................................................................... 51
4 - PRE-FEASIBILITY ASSESSMENT ....................................................................... 52

4.1. 4.2. 4.3. 4.4. 4.5. Scope .............................................................................................................................. 52 Economic Assessment .................................................................................................... 53 Environment Impact Assessment .................................................................................... 57 Social Impact Assessment .............................................................................................. 59 Summary of Key Risks .................................................................................................... 61
Table of Contents of Annexes .................................................................................... 65
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Currency Equivalents
(Exchange Rate Effective July, 2013) Currency Unit = Indonesian Rupiah IDR 1,000 = US$0.1 US$1 = IDR 10,000 FISCAL YEAR January 1 December 31
Abbreviations and Acronyms

ADB Amdal ANDAL APBD APBN Bapedal Bapedalda Bappeda Bappenas BBWS BKM BKSPM BOD BPK BPKP BPS BUMD Cm CPS CSIRO DED DPRD EIA ESMF FGD GOI Ha Ha IDR IDR IPAL JICA Jl Kecamatan Kelurahan Km2 Page ii Document Version 3 Asean Development Bank Analisa mengenai Dampak Lingkungan, environmental impact assessment Analisa Dampak Lingkungan Anggaran Penerimaan dan Belanja Daerah, regional government budget Anggaran Penerimaan dan Belanja Negara, national government budget Badan Pengendalian Dampak Lingkungan Badan Pengendalian Dampak Lingkungan Daerah Badan Perencanaan Pembangunan Daerah, regional agency for development planning Badan Perencanaan Pembangunan Nasional, national planning agency Balai Besar Wilayah Sungai, provincial office of the national public works department for river management Badan Keswadayaan Masyarakat (peoples self-help agency) Badan Kerjasama Pembangunan Metropolitan Biological Oksigen Demand Badan Pemeriksa Keuangan Badan Pengawasan Keuangan dan Pembangunan, agency for oversight of finance and development Badan Pusat Statistik Badan Usaha Milik Daerah Centimetre (World Bank) Country Program Strategy Commonwealth Science and industrial Research Organization Detail Engineering Desain Dewan Perwakilan Rakyat Daerah, local government council Environmental Impact assessment Earth System Modelling Framework Focus Group Discussion Government Of Indonesia Hectare Hectare Indonesian Rupiah Indonesian Rupiah Instalasi Pengelolaan Air Limbah, Sewage treatment plant Japanese International Cooperation Agency Jalan or street Sub-district of city or regency, or the name of the regional government office serving the sub-district Division of kecamatan, or the name of the kecamatan office in the division Square kilometre Makassar Tallo River Area Development Pre-feasibility Study
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KSPPN LARAP LHLC LPM LPPM M3 Mamminasata MoF MoHA MTEF MUSRENBANG NGO NUDP OP/BP PMU PNPM PNPM Mandiri ppHa PPP RDTR READ REI RKL-RPL RT RTRW RW SNI SNVT PJN SPAN TA TKPPN TKPPN TOR UIM Ujung Pandang UMI Unhas UPTD VAT WALHI WB
Kebijakan dan Strategi Pembangunan Perkotaan Nasional, national strategy and policy for urban development Land Acquisition and Resettlement Plan Lembaga Hijau Lestari Celebes (Celebes institute for green sustainability) Lembaga Pemberdayaan Masyarakat (peoples empowerment institute) Lembaga Penelitian dan Pengabdian Masyarakat Meter Kubik Name given to the grater Makassar metropolitan area covering the city of Makassar and the regencies of Gowa, Maros and Takalar Ministry of Finance Ministry of Home Affairs Medium Term Expenditure Framework Musyawarah Perencanaan Pembangunan Non-Government Organisation National Urban Development Program Operational Policies/Bank Procedures Project Management Unit Program Nasional Pemberdayaan Masyarakat funded with World Bank support prior to 2006 Independent PNPM budgeted through national budget since 2006 People per Hectare Public- Private Partnership Rencana Detail Tata Ruang, detailed spatial plan Rural Empowerment and Agricultural Development program Real Estate Indonesia Rencana Pengelolaan Lingkungan Rencana Pemantauan Lingkungan, plan for environmental management and monitoring Rukun Tetangga Rencana Tata Ruang Wilayah, regional spatial plan Rukun Warga Standar Nasional Indonesia Satuan kerja Non Vertikal Pelaksanaan Jalan Nasional Metro Makassar (noonvertical work unit for national roads) Sistem Perbendaharaan dab Anggaran Negara Technical Assistance Tim Kordinasi Pembangunan Perkotaan Nasional, national team for coordinating urban development Tim Kordinasi Pembangunan Perkotaan Nasional, national team for coordinating urban development Term Of Reference Universitas Islam Makassar Name of Makassar during New Order period Universitas Muslim Indonesia Universitas Hasanuddin, the main state university in Makassar Unit Pengelola Teknis Dinas Value Added Tax Wahana Lingkungan Hidup World Bank
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1 - STRATEGIC CONTEXT
1.1. Overview
This prefeasibility study examines a proposal by Makassar City to develop the Tallo River Area. The Tallo River Area is the basis of the ancient Tallo Kingdom, the original centre of government in Sulawesi, with its free-trade port that attracted trade from China to Arabia. The peninsula to the south of the river mouth is proposed to be developed as Heritage City, behind which the river is to be retained in a natural state as a city park and green space of 9.3 km2. In the middle is Lakkang Island which will be retained as a rural community. This park will be surrounded by a levee with a main road thoroughfare with high density mixed-use development along it facing the park. Behind this, a large area will become flood-free for development of industry, warehousing, education and housing in accordance with the city plan (RTRW). In the long run the Tallo River Area will provide place of work, housing and recreation for over 300,000 people, mostly lower-income. If the government accepts densities in Makassar similar to modern dense cities of Asia, this figure could be more than doubled. Makassar City has asked the World Bank to help it develop the concept ready for feasibility study, in anticipation that the Bank may finance the initial work which will stimulate government, private and community to invest in the remainder of the development, according to the spatial plan and evolving national urban development policy that call for new standards of urban design, compact city densities; roads designed primarily for pedestrians and public transport. The city proposes river transport; highest density at intermodal points; government guided community-based informal housing densification avoiding slumming; and new capabilities of the city and the community to govern the process.
1.2. Country Context

Urbanisation and sprawl. Indonesia is one of the fastest urbanizing countries in Asia and its future will be shaped by its cities. In 2011 the population was 51% urban, and the 1 projected to become 85% by 2050. The World Banks Indonesia Economic Quarterly of March 2013 noted that sprawl is preventing the improvement of urban productivity; 2 Indonesia is not designing its cities to promote growth. The main cause of lack of productivity gains is the inefficient delivery of services to dense areas, the dependence on private transport and energy use. A major concern of sprawl is the loss of valuable agricultural land.
Ir Hayu Parasati (2013). Program Pembangunan Perkotaan Nasional: penyiapan implementasi Kebijakan dan Strategi Pembangunan Perkotaan Nasional (KSPPN). Presentation to TKPPN (national team for coordinating urban development) on 3 May 2013. World Bank (2013). Indonesia Economic Quarterly; Pressures Mounting. March 2013. Page 1 Document Version 3
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Decentralisation. Indonesias big bang decentralisation of 2001 was a major redesign 3 of the state. After twelve years, the advantages and disadvantages of the new design are becoming clearer. While many large cities are now competently planning their futures and managing their affairs, the following are some of the weaknesses recognised both by World Bank and the national planning agency Bappenas:
Urban governance issues such as urban growth, major urban infrastructure, and social issues of the large metropolis have not been addressed in regional government regulation. The funding formula for regional government does not include a variable for either population growth or need for urban infrastructure. Large fast-growing urban regions are at a major disadvantage. They become dependent on national ministry ear-marked funds, and as a result national ministries are continuing to fund affairs that are clearly of a local nature.
Government dysfunction. Both the centre and regions continue to be wracked by political self-interest, corruption and lack of competence. The government, the World Bank and the general public are keen to support reforms that bring competence, integrity and accountability to local government affairs. Spatial planning. Three laws, introduced to improve land-management (Law 26/2007 on spatial planning, Law 41/2009 on sustainable protection of farmland, and Law 2/2012 on land acquisition for public use), are not yet having their intended impact. New urban development policy. It is in the light of these concerns that the government is currently preparing a new national urban development policy and program, and the World Bank is planning to support this through innovative development programs in a number of metropolitan areas including Mamminasata.
1.3. City Context

1.3.1. Makassar is sprawling
Makassar is the largest city in Eastern Indonesia and the capital of the province of South Sulawesi. It is located on the south-western coast of the island of Sulawesi, facing Makassar Strait. Makassar is part of the Mamminasata metropolitan area (covering the city of Makassar and the regencies of Gowa, Maros and Takalar), which has a population of about 2.5 million which is expected to grow to around 2.9 million in 2020. Around 1.4 million people live within the City boundary. Over the last two decades, the population of the regencies has exceeded the growth of Makassar, though most of the new employment is within the city boundary. Over 86% of the area of Makassar is used for urban uses, with an overall density of 77 ppHa. (Jakarta, which is not dense by international standards, has 146 ppHa of its builtup area.) Urbanised areas of surrounding regions of Gowa, Maros and Takalar have an even lower density of less than 20 ppHa, scattered over a wide area. The built-up area has expanded far faster than the population, indicating an increasingly lower density of the city. The loss of prime agricultural land would appear to be a major problem 4 throughout Mamminasata, and the sprawl is a major contributor to the lack of increase in the productivity of the city. The city is becoming less serviceable as it sprawls.
Mark Turner and Owen Podger with Wayan K Tirthayasa and Maria Sumardjono (2003). Decentralization in Indonesia: Redesigning the State. Canberra, Asia Pacific Press. Figures are developed from paper by Wilmar Salim (2012). Trans-boundary urban agglomerations governance in Indonesia: institutional coordination issues and opportunities.
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1.3.2. Makassar City has a hole where the ancient Makassar used to be
Yet close to the city centre, and immediately adjacent to the governors office, is a large area of undeveloped land, the large area of wetland on downstream Tallo River, seen clearly on the accompanying map that shows urban development in Mamminasata in red. This hole in the urban area covers much of the original Tallo kingdom, with its centre at the mouth of the river.
Makassar City has a hole where the ancient Makassar used to be
1.3.3. Tallo Heritage City and Downstream Tallo River as the new cultural centre and green backbone of Makassar
Thus the Downstream Tallo River Area has special significance for two reasons: it is the location of the ancient Tallo kingdom, and it is largely untouched by urban development. Since regional autonomy in 2001, Makassar has proposed to develop this area as a cultural centre and green centre for the city. This is endorsed in the Mamminasata spatial plan (2006) which identifies the river as a special development area. T he citys spatial plan (RTRW, still to be enacted) identifies three special development areas here, (i) the Tallo Heritage City focussing on Kelurahan Tallo, (ii) Tallo River integrated development area and (iii) Lakkang Island protected area.
1.3.4. Makassar strategy for coastal defence: reclamation

In the ancient Tallo kingdom, the city built defences along the coast, to protect against outside military threat, and a port for free trade on the river. These defences were not enough to protect it from flooding, and eventually the kingdom was moved to Goa. Makassar again recognises the threat from the sea as one of nature, climate change, storms and tsunamis. It is developing a series of reclamation areas that will create a defence for the city. The proposed Heritage City will be protected from the sea by a new international sea port and major residential development.
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1.3.5. Tallo River area development as the partner of the existing city
We represent this as a human metaphor in the accompanying figure. The current centre of the city government is seen as the head of a man with arms outstretched to protect itself from the sea, and a body extending to the commercial heart and legs extending to its residential areas. Beside him is his partner, representing the soul of the city, with her head in the Heritage City, her arms outstretched to protect from the sea, and her body in the new green area.
1.3.6. Dramatic impact on urban form

The combination of the reclamation and wet-land development adjacent to the proposed parkland will have a dramatic impact on the form of Mamminasata:
They provide space for a far more compact city in accordance with developing national policy. The reclamation area facing Tallo proposes housing for about 700,000 people, and the Tallo River Area Development foresees at least an additional 300,000 people. Thus an additional one million people will be able to live close to the centre of the city, dramatically reducing pressures of urban sprawl. The outer ring road will encourage densification of development along its length, also reducing pressures for sprawl. The first phase of the Tallo River Area Development creates an alternative access to the city from the north, for both private and public transport. High density beside the river and in the reclamation areas will be sufficient to support a river transport system The formal recognition of the river area as parkland and green space will guarantee compliance with green-space standards
Such impacts, together with the impending issue of new national urban development policy, warrant a review of current Mamminasata plans.
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1.3.7. Engaging partners in development

The city has been very responsive to the proposal to use a World Bank loan to leverage private investment to speed up development of the area. This report identifies partners in development as follows:

City Government, in accordance with its legal functions, as regulator and primary development agency World Bank as provider of initial investment funds to act as a initiator and catalyst for the overall program Central Government and Provincial Government, in accordance with their respective functions, as provider of facilities for the national and regional interest such as the outer ring road and flood mitigation efforts, and as pembina (capacity builder) to help the city build the capability to manage the development Private Capital as the primary source of investment in the area, including partnership with the city government to procure land for the park and the mixed use zone along the riverside road. Real Estate Sector as the primary builder of local infrastructure and high density developments Community as the primary source of residential investment in the area (mostly low income), and as the main contributor to local area planning. Academia both to support the scientific inputs to the program (anthropology, archaeology, ecology) and to develop a reorientation of several university campuses to face the park area.
1.4. Introduction to this Report

Following this introduction, Part 2 of this report describes the overall project of the Tallo River Area Development, and the specific recommendations for the World Bank role in it. It covers:

Declaration of the project area Specification of the overall objectives, beneficiaries and performance indicators, as well as the intermediate outcomes from the proposed World Bank contribution Defining project components Description of the existing situation Project components and the role of World Bank in each Estimation of World Bank project costs Alternatives Considered for World Bank Loan support and reasons for rejection
Part 3 of the report presents the implementation arrangements, for both the overall development and the initial World Bank project. Implementation arrangements cover:
the establishment of capacity to manage urban development within the project area, with private financing and the real estate sector, and emphasis on community investment in housing. Proposals for capability support from national government is also described. Improvements to subdistrict governance, with proposed changes in kecamatan and kelurahan within the area. Civil society arrangements, with special attention to the creation of the Heritage City, conservation of Lakkang Island, development of a river community, arrangements for informal housing development, and civil society oversight.
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Land management arrangements, including compulsory land acquisition, land consolidation, incorporation of World Bank Procedures, special considerations for housing on the river, and a note on cases with contested titles or rights. Implementation arrangements for the World Bank Project.

Part 4 of the report is the pre-feasibility assessment, covering an assessment of the scope of the project and relationship with other parties active in development in Makassar, an economic assessment, providing a qualitative assessment of the overall project and a preliminary quantitative assessment of the initiating project proposed for World Bank funding, a commentary on the citys capacity to borrow and a preliminary assessment of the feasibility of private financing of land consolidation for the riverside road, parkland and high density mixed use development, a preliminary environmental assessment, including recommendations for the environmental impact assessment, a social impact assessment, covering both the overall social impact of the development, and the impact on existing communities with reference to World Bank safeguards,
The fourth part concludes with a summary of key risks. It is followed by a series of annexes that provide additional and supporting information.
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2 - PROJECT DESCRIPTION
2.1. Declaring a project area
This pre-feasibility study identifies the boundaries of the project area in a number of ways for different aspects of the study, as illustrated on the accompanying map:
Tallo Heritage City and Downstream Tallo Parkland consists of three strategic areas defined in the RTRW, (i) Tallo Heritage City covering Kelurahan Tallo, (ii) part of the Tallo River Integrated Development Area which covers the river and its immediate embankment, extending past the Tello Bridge to the eastern boundary of the city, and (iii) Lakkang Island conservation area. The area available for development covering land adjacent to the Downstream Tallo Parkland that is currently undeveloped or partially developed, the hole in Makassar identified in the image on page 2. Most of this land is currently subject to regular flooding and will be made flood free by the proposed works, thus available for urban development. Its boundary is marked with a blue line in the accompanying map A wider area, selected to make urban development more manageable by being defined by major roads but precluding public and defence facilities, to be declared by Kota Makassar as the Downstream Tallo River Urban Development Area (Kawasan Strategis Pembangunan Perkotaan Tallo Hilir). The city will make specific implementing arrangements to command development here.
Downstream Tallo River Urban Development Area

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2.2. Development Strategy

2.2.1. Project Development Objectives
The overall objective is to support the development of the Downstream Tallo River Urban Development Area in accordance with the new RTRW, which will lead to:
A city park of 9.3 km2, including Lakkang Island to be retained as a rural area with a traditional village and tourist activity for the population of Makassar and visitors Land made free of flooding that can be used for the development of industry, warehousing, education and housing in accordance with the city plan that can create home and work for over 300,000 people and up to 700,000 people depending on the density of development agreed Access to and around this land (by road and river), in such a way that will promote high density of both housing and work-place, and attract a large population that can living and work close to the park, making public transport by both road and river cost effective for both the public and transport companies. This effectively will create a second commercial district for the city facing the park, with the primary non-polluting industrial and warehousing zone for the city. Improvements to the process of creating housing for lower income groups, including fishermen housing along the river, and locations for apartment and informal housing within walking distance of employment. Increased capacity of the community to define their own destiny and participate in the economy and life of the city. Increased capacity of the city government to manage the project, provide urban services and lead urban development within the area. Minimised relocation of households Utilisation of WB funding to achieve intermediate outcomes that create incentives for continuing and sustainable development of the remainder of the project
2.2.2. Project Beneficiaries and indicators

The following table indicates objectives and beneficiaries of the whole project, showing benefit indicators where appropriate, and indicators used in appraisal over the period of development of the area.
2.2.3. Phasing of development

The proposed development will take perhaps two decades or more to develop as it 5 caters for the economic and population growth of the city. It is proposed that the area be developed in three stages, as shown on the following map. In Stage One, the outer ring road (built by Provincial government) and an alternative route into the city that includes part of the riverside road opens up a large area for development. In Stage Two, the northern part of the proposed riverside road creates access to most of the riverside park, and other roads open the rest of northern area for development. In Stage Three, the western link of the riverside road will be built, linking the park area to Tallo Heritage City and the new port.
Together with proposed reclamation areas, work and housing will be created for over 1 million people, representing around 15 years of the anticipated population growth of Mamminasata Makassar Tallo River Area Development Pre-feasibility Study
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Objective Riverside Park Land made free of flooding Access and high density development
Beneficiaries All citizens of Makassar and visitors/tourists Those who will find work and home in a location close to the centre of Makassar Those able to locate businesses (industry, warehousing and commerce) in high density development Those who will find work, home and business in a location close to the centre of Makassar Those able to walk to place of work or place of doing business Nation through energy savings Lower income families locating in the development area Fishermen in improved housing and stronger communities
Benefit indicators Number of visitors to the park Tourist time in South Sulawesi spent at park Number of jobs Number of residents Number of businesses locating in the area Number of jobs Number of residents Number of trips to and from and through the area Numbers of residents walking to work and place of doing business
Lower income housing support
Number of lower income families finding housing in area Improved housing and economy of communities living on river bank People of Lakkang Island have formed as strong association to promote cultural heritage Improved economy of the people of Lakkang Lakkang not affected by landconversion outside the scope of the RTRW Fishermen families have formed a strong community association to promote their uniqueness Improved economy of the fishermen families Fishing villages protected from intervention to take away their unique form Land use changes and land speculation are controlled, land available for low income housing Urban environment is clean and provided with appropriate levels of services such as schools and community facilities Government improvement in financial management Level of productivity and expertise of local government (Negative indicator) number of households displaced by the development.
Capacity of the community
Lakkang island residents
Fishermen families
Capacity of the city government Poor income people able to have housing close to place of work Public by receiving improved services Local government employees
Minimized relocation of households
Current community living in the area
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Stage 2 Stage 3
Stage 2 Stage 1
Staging of development
2.2.4. Intermediate outcomes

It is proposed to utilise World Bank funding at the beginning of Phase One, to achieve intermediate outcomes that create incentives for continuing and sustainable development of the remainder of the project. The intermediate outcomes are described in the following table, showing the benefit indicators we have used in the economic appraisal presented in Part 4 of this report.
Objective Riverside Park
Intermediate outcome Park boundaries defined by perimeter road or cycle path and planting Some park land developed Land owners of about 1,159 Ha benefit from having land made flood free. Land owners on riverside park road (about 42 Ha) benefit from access to main road and dense development rights Systems in place to assure sufficient land available for lower income families 75 fishermen families in improved housing 300 households on Lakkang Island 117 fishermen families Public by receiving improved services Local government employees Only 85 households displaced
Benefit indicator for economic appraisal
(none)
Land made free of flooding Access and high density development Lower income housing support
Increase in land value of all land now freed from flooding Increase in land value along the new mixed use zone along the riverfront, due to improved access (none) (none) (none) (none) (none) (cost of relocation)
Capacity of the community Capacity of the city government Minimized relocation of households Page 10 Document Version 3
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2.3. Description of the existing situation

A more complete description of the existing situation is found in Annex 1.
2.3.1. Physical and social situation

1. Infrastructure generally There are only two main-road bridges crossing Tallo River, Tello Bridge on Jl Perintis Kemerdekaan to the east and the toll road bridge to the west, providing little alternative access in cases of emergency. Both bridges have capacity less than the roads that lead to them. The study impact area has little road access from east or west. The state of the infrastructure is typical of most other cities of this size. There is little consideration for pedestrians. Garbage collection service is inadequate and garbage floats down the river from city drains. Poor drainage and inadequate maintenance programs lead to a high level of damaged roads. Sanitation is inadequate, resulting in putrid water coming from city drains into the river. 2. Kelurahan Tallo
Kelurahan Tallo is the location of the centre of the original kingdom of Tallo, based at a port that developed through a policy of free trade. When the Portuguese reached Sulawesi in 1511, they found Makassar a thriving cosmopolitan entre-port where Chinese, Arabs, Indians, Siamese, Javanese, and Malays came to trade their manufactured metal goods and fine textiles for pearls, gold, copper, camphor and spices from Maluku. By the 16th century, Tallo had built an alliance with Gowa to the south, and 6 had a series of 11 fortresses and a fortified sea wall along the coast. When Tallo was affected by flooding, Gowa replaced Tallo, and later they moved the main port to the site of Port Rotterdam which was taken over by the Dutch in 1669.
Kings grave yard in Tallo

There are few remains of the Tallo kingdom: the ruins of a few of the fortifications, now surrounded by slum housing, the reasonably-well preserved graveyard of kings, not only kings of Tallo, but from other regions which elected to have their kings buried here, and a mysterious building at a location known as Pelantikan (Inauguration) now in the middle of a community rubbish dump. Access to Kelurahan Tallo is in a dismal state of disrepair, and the location where there used to be the entrance gate is now a temporary garbage disposal site (see photo). This is not an indication of dedication to develop the location as a major tourist attraction.
http://en.wikipedia.org/wiki/Makassar
Garbage at entrance to Tallo

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DJ Cipta Karya directorate for residential development, working with the city and USD 4.6 million from ADB, is commencing a slum improvement program in the area, that will include improvements to the access road. DJ Cipta Karya is also recommencing a project started several years ago to build low cost apartments for fishermen, in a reclaimed area off the coast. While these two initiatives address urgent needs, they have problems that also need to be addressed:
There has been inadequate attention to heritage and the intention of the city to declare the area as a strategic development area for heritage. This implies that the Cipta Karya directorate for building and neighbourhood planning, which is responsible for revitalisation of heritage sites, also should be involved in guiding the preparation of plans with local communities. The site of the apartments, intended to provide access to the sea for fishermen, is not consistent with the RTRW, which indicates that the entire sea front is to be reclaimed as part of the future port. On the river side of Kelurahan Tallo, the DJ Cipta Karya plan intends to remove stilt housing on the river, where less than two years ago Cipta Karya and the province funded the building of access paths and sanitation improvements. This would indicate at least an need for greater involvement of the community in the detailed planning of the proposals. Tallo River Riverbank house of well-to-do family
3.
Most of the length of Tallo River in the project area appears in natural condition, with most of the river flanked by mangrove and nipah palm. In fact humans have planted the trees along embankments built for fish and prawn ponds. Most of the river is shallow, and will require dredging to increase its capacity to handle flooding. There has been a significant loss of fish population in recent decades, and most fishing is now in the open sea. 4. Pulau Lakkang The south fork that creates Lakkang Island
A narrow bifurcation of the river linking to Pampang River creates Lakkang Island. The plan for retaining Pulau Lakkang as a conservation area is well-supported by the people. There are about 300 households living here. There is a school and a mosque. Land is used for ponds, ricefields, and a small amount of plantation. There are no cars. Passengers, goods and motor cycles use small ferries to cross to the mainland. 5. South Bank
In the area north of Jalan Panakkukang, urban expansion is now moving into swamp-land and ponds. Most of this development is comprised of relatively
Lurahs office on Lakkang Island

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small lots for housing, with narrow road access from Jl Panakkukang. Although they have access to water and power, there is little appearance of planning or development control. Most of the area from Kali Panakkukang to the toll-road bridge is already developed, with housing along the river bank. Most of this riverbank housing is traditional in form, owned by fishermen families and some, unfortunately, for garbage recycling. 6. Unhas area
The area between the river and the Unhas campus is allocated for farm and forest research. To the south of the campus, farmland and ponds are increasingly being developed for housing. 7. North bank
The area to the north of the river covers almost 15 km2, mostly low-lying land that is subject to frequent local flooding and sometimes from the Tallo River. This land is used mainly for ponds and increasingly being converted to low-density warehousing and medium density housing.
2.3.2. Institutional situation

Local government. The Makassar City Government is typical of other large city governments in Indonesia. It is the capital of South Sulawesi, and the focus of the conurbanisation known as Mamminasata. The mayor has given responsibility for leading the preparations for the Tallo River Area Development to the head of the infrastructure and spatial planning section of the planning agency (Bappeda) who coordinates the involvement of each operational unit and subdistrict offices, with the engagement of the assistant secretaries for development and governance. Subdistricts. The study area comes within four kecamatan (sub-districts). Panakkukang to the south also covers the southern half of Lakkang Island, Tamalanrea covers the river basin to the east and north of Tallo River. Tallo covers the north half of Lakkang Island, the village of Tallo, and a narrow strip of land between the Reformasi tollroad and the river. A small part of Biringkanaya drains into the river through Tamalanrea. Kecamatan and kelurahan offices are organised in accordance Existing Kecamatan and Kelurahan boundaries with national one-size-fits-all regulations, but serve functions according to the unique conditions of their area of jurisdiction. Local political situation. The current mayor completes is second term in office shortly, with elections for his replacement in September 2013. It is not possible to determine which potential candidate is the most likely to win. Some of the issues of spatial planning and development have been debated on party lines, but as these issues in the spatial plan have been settled, the next mayor is most likely to support the plan and the proposed development of the Tallo River Area. Policy of the new mayor on financial management, such as private-public partnerships and borrowing, and development priorities, will remain unknown until approximately November when he announces his medium term development policies.
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Public-private partnerships. The city government has experience with public private partnerships in developing its water front at Losari, and is currently negotiating deals with investors for reclamation areas and for an extensive monorail system. Civil society. Civil society is relatively active. A number of national NGOs in governance have a strong presence in Makassar, including Walhi for the environment. The media plays a very strong role in reporting and critiquing government action. There are several universities in Makassar, with the national university Unhas being recognised as one of the best in the country. It is located adjacent to Tallo River. Public accountability institutions are also strong in Makassar, including the supreme audit office (BPK), government oversight office (BPKP), Ombudsman, and Information Commission.
2.4. Defining project components

Section 2.5 that follows describes a series of components of the project. The first five components are directly related to an objective of the project, and the remaining four components related to the management of the project and the accountability of those responsible for implementing it. The following table summarises the public infrastructure for each component for the whole project, for Phase One and for the World Bank project proposed to instigate the overall project.
Component Investment to Make Tallo River System Flood Free (Objective 1)
World Bank Project Building levee, flood gates and stabilisation ponds
Other Phase One activities
Later phases
Justification
Local drainage as area develops
Creates large flood free area for urban uses close to city centre Access creates the demand for the land made flood free for private sector investment of high density that creates greater efficiency of the city in accordance with national urban development objectives
Investment to Create Access with Higher Density
Riverside road stage 1, selected river transport piers
Outer ring road, northern link of alternative city access, ferry services, busway service
Completion of ring roads and feeder roads to attract medium and high density development, road link to new port, monorail service. Cultural Centre, monorail stop, and new high density housing in Heritage City, complete development or riverside park with hotels and recreation facilities adjacent (To be determined through planning system)
Investment to Create a Heritage City and City Park
Selected parts of the riverside park, landscaping along road
Commencement of heritage city and river-based tourism
Restores a lost cultural identity in Makassar, and provides much needed usable open space
Investment to Provide Improved Housing
Slum improvements, public housing, revitalisation and neighbourhood infrastructure.
Low income families able to locate housing close to work, in areas that will avoid slumming.
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Component
World Bank Project
Other Phase One activities
Later phases
Justification Makassar City builds capability to manage innovative program, with emphasis on partnership with business and community
Government Capability Development Program
TA
Improved public project and financial management Communities participate in self-government and environmental planning processes Development of partnerships with private sector
Community Capability Development Program
TA
ditto
The project helps to build greater community self-reliance
Program management
Project management support, engineering design and supervision Management of World Bank Safeguards
Ditto
Environmental and Social Assessments and Management Monitoring and Evaluation
Adoption of World Bank standards for the whole program M&E system involving institutions that assure accountability
Ditto
World Bank M&E system
Ditto
Preparatory efforts
Government cannot afford the full investment, and incentives exist to attract private sector participation World Bank safeguards are designed in the interest of the community for whom the project is intended. Those responsible for the work are held accountable to those who provide funds and to the people. All parties are ready to work together as expeditiously as possible
2.5. Project Components and the role of World Bank in each

2.5.1. Component 1: Investment to Make Tallo River System Flood Free
1. Sub-components The following table shows the subcomponents of Component 1 indicating proposed responsibilities. They are illustrated in the accompanying map. 2. Description
A levee is built along the boundary of the riverside park, on both sides of the river between the toll road bridge and the Jalan Perintis Kemerdekaan Bridge (Tello Bridge). Some parts of this levee will be combined with the road included under component 2 below. The levee height will determined by a detailed study being prepared by BBWS. For the purposes of this pre-feasibility study, the height has been taken as the water surface profile for fifty year return period discharge, Q50, calculated by PT Virama Karya for the detail design for flood control for Makassar City and its surroundings in 2004, with 0.60 m freeboard above the water surface. No additional provision has been provided for climate change:
BBWS considers its plans for retaining flood water upstream will significantly reduce the Q50 flood line in the PT Virama Karya study
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Sub-component
Location
Function
Responsible agency
Timing and funding Stage 1 with World Bank funding for construction and national funding for land where riverside road on the levee is to be built in later stages 2014 APBN
Levee
North of Tallo River and to the south of Tallo River, Pampang Kecil River and Pampang River
Prevents flooding of area behind levee
BBWS
Tamalanrea Indah Rappokalling village and timber mill at Parangloe
Docks
Flood gates with pumphousing
At tributaries
Water quality stabilisation ponds
At larger tributaries
Prevents flooding of area behind levee Allows community and business access to river Disposes water into river at times of flooding, enables river flushing Lower BOD levels before water enters Tallo River Allows flushing of canals and rivers Acts as retention pond and link between Tamalanrea and Unhas drainage systems Diverts drainage to Pampang River Increases river flow, provides material for reclamation
BBWS
BBWS
Stage 1 World Bank funding
BBWS
Stage 1 with World Bank funding
BBWS
Stage 1 with World Bank Funding With associated road works (including outer ring road for 2014)
Connecting canals
Linking the three tributaries in area north of the river
BBWS and city
Tamalanrea Indah
BBWS and city
With BBWS levee
Tello BaruPanaikang
BBWS and city
Stage 1 with WB funding With future reclamation
Dredging
At river mouth
Potentially along the length of the river
BBWS and developers
With Stage 2 development and private funding
Dredging proposed for a later stage will reduce flood levels An estuary barrage can reduce the river level by around 50 cm The height of the levee can be increased at a later stage, through relandscaping of the riverside parkland.
It is proposed that the land for this levee be freed by Balai Besar Wilayah Sungai (BBSW, the national river management agency). For a short portion of this levee on the northern bank of the river for about 1 km from Tello Bridge, the levee will be built by BBWS with national budget funding (ABPN). Elsewhere it is proposed that construction be funding 100% from a loan from the World Bank.
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Flood mitigation works (Component 1)
At Rappokalling, the levee will be built at the front of fishermen housing, creating a dock for their boats. The design will need to be developed with community input. A special design will be required to the front of a timber factory to the north of the river at Parangloe that collects timber from the river. This will need to be agreed with the factory operators. At Pampang, the levee is diverted from the riverbank at the location of a proposed sewerage plant. Several flood-gates with pump houses are to be constructed on the tributaries and outlet to the river to prevent river flood waters entering the land behind the levee. The four large ones, which are combined with stabilization ponds to reduce pollution levels of water flowing into the river, will be provided at the tributaries of the river (Pampang, Parangloe, Kapassa and Biringromang rivers), while the two small ones will be installed at the outlet of UNHAS lake and the outlet of Tamalanrea Indah drainage system to the river. The flood gate designs are based on the fifty year return period design discharge, Q50, of the tributaries, which, from the results of calculation by PT Virama Karya in 2004, (286.8 m3/s for Pampang river, 85.1 m3/s for Parangloe river, 28.1 m3/s for Kapassa river, and 125.1 m3/s for Biringromang river). Water quality stabilization ponds reduce the pollution levels (mainly BOD and sediment concentrations) in the drainage water before entering the river. The three tributaries to the north of the river (Parangloe, Kapassa and Biringromang rivers), will be connected by canals within the road allo cation for the citys Outer Ring Road, and along other roads. The design of the flood gates on these three tributaries will allow for flushing from one tributary to the other using tidal flows and/or pumping supply from the pump house which will be designed for reversible pumping action. Dredging is proposed for stage 2. According to BBWS, dredging is not urgently required as retention ponds upstream will reduce flood flows. The planned study of the river by BBWS will provide recommendations for dredging. The proposed EIA will determine the
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suitability of the sediment material for filling behind the levee for future urban development. 3. Potential future works

Potential future works include: River short-cuts to shorten the distance for river transport and to speed up the flow of flood waters. An estuary barrage that would make the whole park area behind it free from tidal influence and salination, and result in a drop of river-level of about 50 cm, accommodating anticipated sea-level rises by 2050. See section 2.7 Alternatives Considered for World Bank Loan support and Reasons for Rejection for further discussion. Long term increase in height of levee to accommodate further sea-level rise. See drawing in Annex I that illustrates future increase in levee height.
2.5.2. Component 2: Investment to Create Access with Higher Density

1. Subcomponents and phasing The following table shows the subcomponents of Component 2 indicating proposed responsibilities. They are illustrated in the accompanying map.
Creating access to development area (component 2)
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Subcomponent
Location Linking Jl Perintis Kemerdekaan to the toll road through the north of the river Linking outer ring road to Panakkukang adjacent to governors office, mostly on the levee North of outer ring road
Function Providing access from the south of the city and opening up a vast area of land north of the river to warehousing and industry Creating access to west and south of the riverside park and high density development strip, main component of alternative route into city from north With riverside road creates access into city and to new development area Real estate development for mixed use at density to promote public transport Real estate development for industry and warehousing including local infrastructure Alternative public transport to city and future reclamation areas Access between bus, ferry and later monorail
Responsible agency
Timing and funding
Outer Ring Road`
Provincial government
Anticipated start in 2014
Riverside road stage 1
City
Stage 1, with World Bank funding
Part, alternative access to city High density development
City
Recommended for development in parallel to WB project On completion of road, private sector funding
Along riverside road stage 1
Real estate
Block Development
North and south of outer ring road
City partnership with real estate City and private entrepreneurs City and investor City and private investment partners
After completion of outer ring road Starting on completion of riverside road stage 1, private investors World Bank (funding for piers), city and private sector investors After substantial development along stage 1 and block developments on outer ring road. When economic feasibility of link can be proven, joint venture funding When economic feasibility of link can be proven, joint venture funding World Bank funding
River transport
Along river with piers at strategic locations Adjacent to piers at bridges and Kera-Kera
Transport interchanges
North side of river
Access to park and high density development, link to toll road Completion of riverside road, access to Tallo Heritage City Traffic access from toll to the development area, symbol of entry to park Providing temporary access for cycles until riverside road is completed
From Panaikang to toll road, Tallo Heritage City, and future port Upstream from toll-road bridge
City
Signature bridge
City
Cycle path
Along levee
City
2.
Description
Two main roads are proposed as the mainframe of this component which makes the whole area accessible for development. The first is part of Mamminasata plans, the outer ring road. It cuts across the middle of the large area to the north of Tallo River, from Jl Perintis Kemerdekaan to the toll road. This part of the ring road is planned for construction in 2014 by the provincial public works agency. The function of this road is
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primarily to serve industrial and warehousing areas. Later it will extend to the east and south, linking to the southern part of Mamminasata, and will extend west into the proposed industrial area west of the toll road and to a proposed large reclamation area. The second main road is the Riverside Road, to be located along the flood control levee. When completed, it will link with the industrial zone to the north-west of Tallo River, cross the toll-road close to the toll road bride, then wrap around the proposed parkland returning to cross the toll road to the south of the bridge, linking to Tallo Heritage City and finally to the now port facility in reclaimed land to the west of Tallo. A second river crossing will link the two ends of the road upstream from the toll road bridge. This road will serve primarily as access to the park and to a ribbon of high density mixed use between park and the industrial-warehousing-residential areas behind it. It will be provided with four lanes for private vehicles, special bus lanes, wide footpath space and extensive planting of avenue trees. No on-street parking will be allowed, and access to the dense mixed use development will be from side streets provided by property developers. The first stage of this road is proposed to be constructed with funding from the proposed World Bank loan. This part would start with a link to the outer ring road to the north east, running south past the Unhas campus, and crossing the river with a new bridge at Tello Baru, and extending to a link road on the western boundary of the Governors Office on Jalan Urip Sumohardjo. It is proposed that the land for this road be freed by a jointventure with private developers, as described in the institusional arrangements below. This first stage of the riverside road will form part of an alternative access to the city, from the bus terminal in the north to Panakk ukang at the governors office. It is proposed that this becomes a main artery of the proposed Bus Way for Mamminasata. Please refer to comments in the assessment in section 4 on the design of the Bus Way. Later stages of the riverside road will also be design to give priority to public road transport. Stage 2 along the northern bank of the river will be built after substantial development has begun along stage 1 and along the Outer Ring Road. Stage 3 which links to Tallo Heritage City and the future port will be built when sufficient demand makes in economically justified. Stage 2 and 3 include elevated roads in front of the timber factory at Parangloe to the north, and in front of the fishermens housing at Rappokalling , as indicated in the RTRW in order to minimise the impact on existing communities and economic activities. The city will also develop river transport. We envision 18m catamarans designed to carry around 50 passengers, with low draft (70 cm) and low wake to minimalize abrasion of the shoreline. These would be provided by the private sector under licence to the city. Some of the piers are included in the proposal for World Bank funding. Three of these piers will be under river bridges, and one at the Unhas campus, at points to maximise demand by linking to other transport modes at nodes planned for high density developments. Two others will be on the island of Lakkang, to help promote tourism in the area. The piers would be designed for the passenger service and for improved landings for existing motor-cycle ferry services. The city proposes two monorail routes, the first along Jl Perintis Kemerdekaan, and the second from the future port along the line of the Reformasi Toll Road. We envision an interchange at Tello Bridge that will link bus, ferry and the monorail. We propose modification of the route of the second monorail route, to create a similar interchange at the toll-road bridge, and a monorail stop at the heart of the Tallo Heritage City. The detailed spatial plans yet to be prepared should provide incentives for private sector and community investment in medium to high density development that will support the public transport system proposed:
Mixed use development at a high density along the riverside road, maximising the potential of fronting onto a major recreation area. This would include high rise residential and commercial complexes at transportation nodes. Warehousing and industrial development to the north of the river in accordance with the RTRW, with block development assigned to real estate developers, who
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will provide space for housing of low income workers, as described in section 2.5.4 below.
Further intensification of education areas, including a reorientation of the Unhas campus to face the river.
The plan provides for water-supply, electricity and telecommunications and drainage to be developed along the main road arteries by the appropriate state agencies. Until Stage 2 and 3 of the riverside road are built, the levee will be provided with a 2m cycle road to provide access until the entire Riverside Road is completed. 3. Possible Future developments
The plan envisions future toll road improvements:

Additional bridge capacity at River Tallo A major interchange at the link with the outer ring road (to be included with the provincial road component) Widening of the access road on both sides of the toll road Additional off-ramp as access to the riverside road on the North Bank Improvement to ramp Tallo River South Bank
2.5.3. Component 3: Investment to Create a Heritage City and City Park

1. Subcomponents and phasing The following table shows the subcomponents of Component 3 indicating proposed responsibilities. They are illustrated in the accompanying map. 2. Heritage City
As so few items remain from the original kingdom, the proposed Heritage City will consist of cultural symbols more than restored relics. The main symbols proposed are the use of space, as indicated in the following illustration. The key components of the concept are:
Demarcation of the line of defence with a roadway and views to the west from each of the fortresses, and rehabilitation of the mangrove forest that hides the view of the port from the sea. An avenue along the river front symbolizing the ancient port, with the boatbuilding facility retained, possibly with a finisi ship-building ramp added. Ferry service symbolizing the trade routes up river and to the sea. Provide a new gate to the Tallo Heritage City where the original gate was, as a point for reflection and demarking a starting point of an historical adventure Creating a park area around the inauguration monument, with facilities for all future city inaugurations Creating a park area where we assume the international trade was carried out, and at this point create a new local market place for local cultural products
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Subcomponent
Location
Function Preservation of cultural heritage, development of a cultural centre A gathering point for academia with society
Responsible agency City, Cipta Karya City
Timing and funding On-going with potential of significant private investment Stage 1 World Bank
Heritage city First phase riverside parks
Kelurahan Tallo Kera-Kera in front of Unhas Tello Bau close to bridge and electricity transmission cable Panaikang reserve
Recreation area
City
Stage 1 World Bank
Lakkang Island conservation Mangrove planting Cycle paths Remainder of river park
Lakkang Island Locations along river to be determined Along levee and length of parkland
Worker and family recreation area close to Governors office Urban green space and conservation of traditional rural lifestyle Protection and enhancement of biodiversity Recreation, access for park maintenance Recreation uses
City City and community City City City
Stage 1 World Bank
Developed in stage 2 and 3.
Tallo Heritage City and City Park (component 3)
Final Report
Creating a park where ceremonies can be held, and a facility for weddings and festivals, with access to the river as many ceremonies have bathing rituals. Also providing a cultural centre and school for traditional dance music and drama, an education facility for children to learn about their cultural roots, and a Tallo Heritage Museum Retaining housing as far as possible:

Developing an architectural code for the area to have stylistic consistency Allowing limited retention of riverside stilt housing as part of the heritage
Providing a new gate to the graveyard as a symbol of respect for ancient kings who brought fame and religion to Makassar
Being more symbolic than physical, we propose that the development of Tallo Heritage City be based on study of the culture and oral history. For this we propose a Tallo Heritage Council made up of community leaders and historians. This council would also be commissioned to prepare a detailed spatial plan (RDTR), taking the time to build consensus and historic authenticity. We also propose that the community restores and modernizes its traditional local organization known as Gallarang, which would be similar to Banjar in Bali, as proposed in the institutional arrangements above. Making the Heritage City a commercial success requires a number of strategies

High level of local ownership Vastly improved access.
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As quickly as possible, the entrance road should be upgraded and an education facility built for school tours, to create a quick win for the community In the longer run, the riverside road should link to the gateway to Tallo Heritage City, and lead to the proposed reclamation area for the port extension Also in the longer run, the proposed monorail linking the proposed port area to Panakkukang via the line of the Merdeka Toll-road should be diverted to stop at the proposed cultural centre
Providing large property owners with high development rights in exchange for contributions to the plan. Four sites would be included in this:
The old timber factory, currently left vacant, and includes large green areas, can be developed into public space and parts of the proposed cultural centre, in exchange for the rights to build high-rise apartments facing the space. This would be a suitable location for the proposed monorail stop, and would include commercial activities on the lower levels. The property owners are enthusiastic to participate in such a venture The warehousing complex to the south of the graveyard, and also includes both a large gardened area and fishponds behind a high wall, can be developed into the ceremonial open space with access to the river, and the parts of the cultural centre, in exchange for the rights to develop high rise apartments along the southern boundary. The location of the property owner is unknown. Parts of the land owned by the Ministry of Transportation that are not now used for housing, and a small area used for housing, should be developed into the proposed Inauguration Site. Similarly, an unused property south of this can also be developed.
Improving the capacity of the office of Kecamatan and Kelurahan Tallo to oversee the development of the Tallo Heritage City, possibly requiring a revision of boundaries, so that the Kecamatan takes in the whole of the historic area including the proposed park, and the kelurahan takes in the whole area north to the proposed gate. Engaging Cipta Karya experts in revitalisation of heritage sites and buildings as partners in the planning process, as described in section 3 below on implementing arrangements
The accompanying map indicates the location of these properties, and the illustrations shows what the centre of the Tallo Heritage City may look like. 3. City Park
The city envisions the entire area within the riverside road to be developed as a city park. This covers approximately 9.3 km2. This area will be comprised of the following parts:
The river to be used for recreation and river transport, but also for more intensive fishing. Stabilisation ponds mentioned under component 1 will be needed to assure water quality to sustain a tourist industry. Lakkang Island to be retained as a rural community and a tourist destination to display traditional village life Areas of mangrove forest Retaining nipah-nipah plantations along most of the river bank Traditional stilt housing to be retained and improved on selected parts of the river bank A large area for university farming, fisheries and forest research to the south of Lakkang Island
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Aerial view of Kera-Kera and Unhas campus
A number of park areas providing a variety of recreation uses

It is proposed that the World Bank funds a number of these initiatives: Mangrove planting at select locations on the north bank of the river and on Lakkang A formal riverside park at Unhas A park at Tello Baru close to the proposed ferry pier A park on Pampang Kecil river at Panaikang, to the north of the Governors Office Pedestrian and cycle tracks along entire riverside road levee, with a line of trees adjacent to the levee Landscaping around the stabilisation ponds
These efforts will be complemented by programs of the tourism agency and sports agency to provide further developments. The implementation arrangements below propose arrangements for the overall management of the park. The following figure illustrates potential development at Kera-Kera adjacent to Unhas campus.
2.5.4. Component 4: Investment to Provide Improved Housing

1. Subcomponents and phasing The development area will provide future employment for over 200,000 low income people. It is most important that the land in the area is not commandeered by the real estate sector in such a way that they cannot live close to employment. The project envisions a set of new initiatives to assure improved housing choices for lower income housing, as described in the following table. The location of subcomponents is shown on the accompanying map.
Final Report
Sub-component
Location
Function Preservation of cultural heritage, development of a cultural centre Traditional stilt housing over the water Higher density development in existing low income areas without slumming Higher density development of new low income areas without slumming Housing choice with high density for low income families
Responsible agency
Timing and funding On-going with potential of significant private investment Some WB funding for sanitation, community investment To be determined
Housing in Tallo Heritage City
Kelurahan Tallo
City, Cipta Karya
River-bank fishermen housing
Buloa, Tallo
City, Public Works
Guided densification
North of Unhas, Tamalanrea Indah, Panaikang
City, Cipta Karya, communities
Informal housing within block development
Block developments on outer ring road
City, Cipta Karya and real estate City, Cipta Karya, Ministry of Housing
To be determined
Low cost apartments
To be decided in detail planning
To be determined
Housing improvement initiatives (component 4)
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1.
Tallo Heritage City housing
Following the concept for Tallo Heritage City presented above, the just-started slum improvement project should be expanded and adapted as necessary, to cover a complementary initiative from the directorate for building and neighbourhood planning to help the community prepare plans for building and neighbourhood (RTBL) and that link slum improvement with revitalisation of the area. Current plans for slum improvement are likely to change little in the west side of Tallo, except perhaps around the two remains of fortresses. They are likely to produce significantly different plans in the area facing the river. The planned apartment buildings for fishermen needs support of detailed planning to assure the community that they will continue to have access to the sea when the planned reclamation for the future port is implemented. 2. River-bank fishermen housing
It is proposed that improvement of river-bank fishermen housing at Buloa next to the toll road bridge, and potentially in locations along the river in Kelurahan Tallo, as part of the effort to preserve culture and heritage, and make the area more attract for tourism. At present the general quality of this housing is poor to very poor, but in Buloa and many parts of Tallo the main problem is sanitation which is relatively easily addressed. The opportunity is to enable these communities to improve their welfare by making the housing more attractive and accessible, for fishermen to sell their catch and to provide simple restaurants to tourists on the river. The problem of garbage collecting under this housing is not due to the practices of the residents. The garbage washes down the river, and gets deposited under the housing. The water stabilisation ponds recommended above will result in the area under the housing being clean. Under current river regulation, such improvements are not permitted, though the housing may be retained. See the legal opinion under assessments for potential problems below. If improvement of selected housing on the river is agreed by all parties, it may be good for tourism lead to limited and controlled further development of stilt-housing at select places along the river to help promote tourism. 3. Guided densification
Planned densification is proposed for housing areas close to the stage 1 riverside road behind the proposed high density development in three locations:

In Panaikang and Tello Baru north of Jl Urip Sumoharjo In Tamalanrea Indah south of Unhas North of the Unhas campus from Kera-Kera to Jl Perintis Kemerdekaan
It is proposed that the communities in these areas prepare building and neighbourhood plans (RTBL) with guidance from DJ Cipta Karya, and supported by technical assistance from the World Bank (see below). It is anticipated that the density of these areas could reach over 1000 ppHa in places. The RTBL process will assure the availability of community space and prevent both slumming and take-over by a richer community. An allowance is made for funding to support the resultant program that should be developed in parallel the Feasibility Study. 4. Informal housing within urban development blocks
Under implementing arrangements below we present a proposal for the private sector to plan and construct warehousing and light industry facilities with accompanying infrastructure. These large blocks should also contain areas which will provide low income workers with places to live close to work. Based on the RTBL process, we propose that the real estate developers build narrow access roads with shop-houses along them, with 2m laneways leading to areas where
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the community will participate in the planning process as the area grows. Sites for primary school and mosque will act as anchors to attract people to join the new communities, as shown on the accompanying illustration. Community associations with government support can assist with providing credit. 5. Low cost apartments
It is anticipated that the ministry for housing and the city will provide apartment housing at strategic locations in the area. These should be planned close to transport nodes to encourage the use of public transport.
2.5.5. Component 5: Government and Community Capability Development Program

1. Subcomponents and phasing The scale of development proposed for Downstream Tallo River Area Development requires high managerial capability of government and a strong civil society, as described in detail in Section 3 on implementing arrangements. Developing this capability itself will require major development programs in government and the community. Kota Makassar will be carrying out a number of government reforms over the period of this project that should have a positive impact on the outcomes. This include bureaucratic reform (as the capital city of the province), and budgeting-treasury reforms related to the SPAN program (Sistem perbendaharaan dan anggaran negara). This later program will be implemented by the newly-formed Financial management agency (Badan Pengelolaan Keuangan Daerah, commencing in October 2013). Even though Makassar City has many programs working with the community, community leaders express the need for further development of civil society in Makassar, greater participation in civil affairs, and greater self-governance. This is particularly important for the following aspects of the Downstream Tallo River Area Development:

Participation in detailed spatial planning and RTBL Creation of the culture and society of Tallo Heritage City Livelihood programs related to the city park, including Lakkang conservation, riverside housing, tourism Business support for partnerships in investment and development
The following table indicates the proposed subcomponents that are proposed to be supported by the World Bank project in support of this capability improvement: 2. Government capability program
Financial Management Capability Improvement As good financial management and fiduciary care are essential for an effective loan program as well as for assuring accountability in private-public partnerships, it is proposed that loan funds or other World Bank resources are provided for a financial management technical assistance for helping the new financial management agency in Makassar build its capability. This TA would help Makassar City implement SPAN, a program for building up accounting, auditing, financial management and costing skills, and establish continual performance improvement across government through financial analysis of performance.
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Subcomponent
Location
Function
Responsible agency New financial management agency
Timing and funding
Government Capability program Financial Throughout the management city reforms Urban Urban development Management management reforms agency and related agencies Public Transport reforms Provincial and city government
Introduce world class financial management Hands-on performance oriented management of very large urban development program To develop an action plan to support a major change from private to public transport To improve the effectiveness of policy formulation, focussing on the regulation needed for project success
Starting immediately, with TA support for four years in WB program Starting ASAP with TA support for four years in WB program
City Secretary
City Bappeda and Mamminasata
Starting ASAP with short TA focussing on river transport
Policy formulation reforms
Throughout government
City Secretary
Starting ASAP with medium term TA
Community Capability Program Lakkang Island Lakkang Island , and river fishermen community communities, and development tourist activity program communities Informal residential areas Housing in Panaikangdensification Tello Baru, program Tamalanrea Indah and north of Unhas
To assure both the wellbeing of river communities and their role in park functions
City government with the communities
Starting ASAP with support from many agencies including DJ Cipta Karya, with 4 year TA support Starting project with support from many agencies including DJ Cipta Karya, with 4 year TA support
To guide communities to create clean and healthy residential environment
City government with the communities
Urban development management reforms In the Section 3 on implementation arrangements, this assessment proposes a number of initiatives to change the way in which urban development is managed:

changes to functions of subdistrict agencies (kecamatan and kelurahan) in the development area to assist in planning and development control, the creation of a Downstream Tallo River Development Agency following national guidelines on urban development, designed to engage in large scale private-public partnerships for development and the creation of a new joint venture institution for land acquisition along the proposed riverside road.
An urban development management reform program is proposed for the institutional development and the capacity building to make these new arrangements work. It is proposed that loan funds or other World Bank resources be provided for an urban development management technical assistance that would work with the city, supported by DJ Cipta Karya and Ministry of Home Affairs to help the above-mentioned agencies establish their capabilities. This would include efforts to guide and control land values and the real estate industry, and to attract private investment to work in the best interests of the city, with particular
Final Report
concern for achieving higher densities, assuring low-income housing, and preventing slumming. This aspect of the assistance would start with an initiative to assure complete and publicly-available information on property registration, and support to households to obtain tenure. Another aspect of the assistance would be help in developing policies and capability for proper sanitation, solid waste management and pollution control throughout the development area. It would also include capability development in contract and license preparation and project management for managing real estate developer who will be responsible for subdivision of land for industry, warehousing and residential areas. Public transportation reforms A key aspect of the national urban development strategy is to develop public transport, and the incentives to use it and disincentives to using private transport. For this Mamminasata and the city should develop a reform program in public transport policy and provision. A public transportation technical assistance is proposed to help the city develop one of the key elements of its new transportation polices, its river transport program, and to develop plans for road public transport in the development area. Policy drafting reforms The quality of a policy is measured by the extent to which government implements it and the public respect it. Policies related to land use and urban systems are assessed to be lacking by the extent to which private development continues in contradiction to policy, and the lack of civil order in public spaces. A legal drafting technical assistance is proposed to help the city develop its regulatory basis for the program, including:

New river alignment regulation Revision of kecamatan/kelurahan functions, boundaries and names Preparation of detailed spatial plans for the park and for the areas around it. Detailed spatial plans for some parts of the area should be prepared in conjunction with efforts of the community capability program below.
An important aspect of this technical assistance is advice on assuring that policy is effectively accepted by the apparatus and the public, and implemented. 3. Community capability program
A program is proposed to develop the capability of community in self-governance. This is largely composed of two initiatives. It is proposed that both receive relatively small, focussed and long-term technical assistance. Lakkang and River Park Community development program Lakkang Island and park community development is a program to help the community on Lakkang Island, fishing communities along the river, and a new community that will grow providing other services within the new park area. The program will empower them particularly to benefit from the growing tourist activity in and around the park, to improve their housing in an agreed form that promotes tourism and local culture, and to establish codes of conduct and self-governance. This program would be supported by over a period of four years. Part of the assignment of the technical assistance would be to facilitate community participation in the development of a detailed spatial plan for Lakkang and the park area. Housing densification program This program provides support to communities in informal housing areas to improve their urban environment as the area becomes denser. The communities will be assisted in preparing inputs to detailed spatial plans (RDTR) and preparing building and
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neighbourhood plans (RTBL) with support from DJ Cipta Karya and a guided housing technical assistance over a period of four years.
2.5.6. Component 6: Program Management

Proposals for program management at the national level will be developed for the set of cities coming under the National Urban Development program (NUDP), and are not considered in this pre-feasibility study. It is assumed that a national Program Management Unit will be formed, and that this unit will assist the Makassar-based Project Management Unit to communicate with central agencies in Jakarta. This component will consist of a project management office for the World Bank-related works, responsible for engineering design, procurement and supervision, and liaising with various implementing entities. It is proposed that Makassar City and BBWS provide professional project management expertise to this unit, and that World Bank funding will supply an overall project management team and engineering design and supervision. It is proposed that the program management unit includes a public relations office, to keep stakeholders and the public informed about progress of the program. Institutional arrangements are described in the following section. The component will be supported by Detailed Engineer Design and Supervision consultants, and project management technical assistance.
2.5.7. Component 7: Environmental and Social Assessments and Management

This component consists of the preparation of environmental impact assessment for the works funded under the World Bank project, and for environmental monitoring and evaluation. The cost of the environmental impact assessment is proposed to be borne by the loan as part of the feasibility study. This assessment would include the preparation of LARAP. The cost of preparing and executing RKL-RPL for each contract package will be included within each contract, and the costs of overall environmental monitoring and assessment will be borne by the city and provincial environmental agency (BLHD). A nominal figure of 0.5% is allowed for World Bank independent environmental and social evaluations.
2.5.8. Component 8: Monitoring and Evaluation

The World Bank has indicated it will develop a monitoring and evaluation program for NUDP, which is not included in this study. A nominal figure of 0.5% is allowed for World Bank independent monitoring and evaluation. Makassar City government and council will also monitor and evaluation progress and outcomes in accordance with the existing accountability system. These will include mechanisms for handling community complaints.
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2.5.9. Component 9: Preparatory Efforts

1. Matrix of Preparatory Efforts The following table identifies preparatory efforts needed, and responsibilities.
Subcomponent Loan agreement Environmental Impact Assessment Land Acquisition Framework Tallo River Hydrology Study Land freeing for outer ring road RTRW
Function To assure program gets into the 2014 Blue Book To assure compliance with World Bank environmental safeguards and Indonesian environmental laws To assure compliance with World Bank land acquisition safeguards and Indonesian land procurement laws The basis for river works and verifying the height of the levee and future dredging work Expedite construction of road Basis for controlling land use and for attracting development to appropriate locations To prevent speculation and inappropriate exploitation of land within the development area (1) careful study of all land holdings affected and (2) preparation of Mayoral decree on speculation prevention First step of creating organisation to manage development is to create the strategic area for Downstream Tallo River Development To attract private investment to expedite the project, and provide return to the city Develop a plan with communities for preparing RDTR and RTBL Integrating slum improvement program with revitalisation plan for creating Tallo Heritage City (1) resolve inconsistencies between different proposals for sewage treatment and use of land with the development area (2) potentially create more land for development Synchronisation of Mamminasata plans, new national urban development policy and high density development in Makassar To integrate busway plans with the city plan and Downstream Tallo River development plans, and imitate proposed public transportation reforms
Responsible agency WB and Bappenas Consultant appointed to prepare study Consultant appointed to prepare study BBWS Provincial government DPRD and Walikota
Timing and funding ASAP Consultants appointed on approval of loan Consultants appointed on approval of loan Consultant appointed in 2013 ASAP, provincial funding ASAP
Preventing speculation
City
ASAP
Agreeing on development area Establish land consolidation joint venture Detailed spatial planning Tallo slum improvement review Sewerage systems review
City City, in consultation with Ministry of Home Affairs and MenPAN&RB City with support of DJ Cipta Karya City with DJ Cipta Karya City, Mamminasata and central government
ASAP
On approval of loan
ASAP ASAP
ASAP
Mamminasata review
Bappeda lead City and Mamminasata with DG land transport
Busway review
ASAP
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The following paragraphs provide further summary of the key components of preparations. 2. Environmental Impact Assessment
Environmental impact research is required into the impact on the environment of development overall, and in particular the works of stage 1 including flood mitigation, the riverside road and its associated high density development, piers and river transport, development on Lakkang and the proposed riverside park area, and improvements to housing, particularly on the river bank. The research should also the impact of the environment on the proposed development. It should conclude with recommendations for managing environmental factors and monitoring impacts as a means of control. The environmental components that are to be examined include geophysical, biological, social and economic. And the impact of environmental conditions on project plans include erosion, sedimentation, water quality, and pollution sources that will have an effect on the environment construction plan. A draft TOR is included in Annex C. 3. Resettlement Framework and LARAP
An initial review of social issues and land acquisition initial review was carried out during this pre-feasibility study to analyse direct and indirect social risks and impacts likely to be caused by the project activities. The overall social impact of the Project is expected to be positive, as it will improve the job creation and social pride for a significant number of beneficiaries. Localized negative social impacts will be experienced due to: (a) land acquisition and resettlement associated with riverside road, levee, IPAL, green park and development of the high density mixed use development along the road; and (b) possible exposure to HIV/AIDS due to the significant number of migrant workers on the sites. Mechanisms are put in place to manage these concerns. The project triggers Involuntary Resettlement (OP/BP 4.12). A Resettlement Policy Framework is included in the Environmental and Social Management Framework (ESMF). The riverside road, levee, water quality stabilisation ponds, green park and mixed use development require extensive land acquisition and limited resettlement. To address these issues and to ensure compliance with both Indonesian Regulations and the World Banks Involuntary Resettlement policy OP 4.12, the project will use a Land Acquisition and Resettlement Policy Framework (LARPF). The Framework makes provision for compensation at market prices; and payments in full to Project Affected Persons (PAPs) before their land and other assets are taken into possession by the Project. The Framework also provides for public consultation with the PAPs, and includes a grievance mechanism, monitoring implementation of land acquisition, compensation and resettlement, as well as post-resettlement status of PAPs. Notes on the scope of the LARPF preparation are included in Annex D. 4.
Speculation prevention
Three activities are recommended to help discourage speculation: Careful study of all land holdings. Anecdotal evidence suggests that some key land may be in the hands of people whose interests are in conflict with the city. This should be verified. The Mayor should prepare an executive regulation on land value based on current use market value, and not on the value of anticipated future use. All people with significant landholdings (for example real estate developers in Parangloe) should be invited by the Mayor to become partners of the city in development in accordance with the plan. Sewerage systems review
5.
The study identified conflicts and overlaps in the sewerage systems proposed by JICA in the 1990s and by IndII-AusAID recently. Also, significant advances in technology would appear to be more efficient in land-use for the treatment plant than the JICA proposal which is still acknowledged by both Mamminasata and Makassar city.
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Before the levee is designed at Pampang there should be an agreement on the land set aside for the treatment plant at Pampang, and the levee aligned to allow more land for medium to high density between Pampang river and the Merdeka Toll Road. 6. Busway review
With the riverside park forming part of an alternative access to the city, it is appropriate that the Ministry of Transport plans for a Mamminasata busway should be integrated with it. Current plans for the busway are based on the same design as other cities without the benefit of critical review, particularly when several cities are not achieving a level of demand that would justify the subsidies provided. Research is needed into what will attract people from private transport to public transport in Makassar, learning from international experience with indicates:

high public preference for low-floor buses phobia experienced when there is a gap between bus stop and bus, where bus-stops are overcrowded, or where there is pushing when people get on or off the bus decline in use when steps and ramps are involved Increase in demand where there is good pedestrian access Increase in demand when there are intermodal junctions associated with commercial facilities Increase in demand where high density development is immediately adjacent to bus stops.
2.6. Estimation of World Bank Project Costs

1. Summary of components of World Bank project The cost of investment for infrastructure development in the Tallo River Development Area, according to the calculations of the pre-feasibility team are estimated at approximately Rp 1.66 trillion as shown in the table on the following page. 2. Notes on costing
Makassar does not have a well-developed construction costing information system. The calculations have been based on data collected from government offices and from prices used by contractors in Makassar for preparing bids. This has necessitated the making of assumptions on design without full designs being prepared. The extensive calculations prepared are available in a separate report available to Makassar City and the World Bank.
2.7. Alternatives Considered for World Bank Loan support and Reasons for Rejection
The following are alternatives considered and the reasons of our rejecting them from the recommendations
2.7.1. River dredging

The Terms of Reference make specific reference to dredging and the disposal of dredged materials. Current thinking in BBWS is that their plans for retention lakes upstream will greatly reduce flooding levels. It is concluded that there is no urgency for dredging. Data on the slope of the river in 50 year flooding indicates that dredging at the rivermouth will have a greater impact on flood mitigation than elsewhere. It would be appropriate for such dredging to be incorporated into the proposed reclamation projects north and south of the river-mouth.
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Recapitulation of Cost Estimate

Land area (Ha) Estimated construction cost Rp million 114,300 91,623 18,997 42,561 42,561 42,561 42,561 550 250 Estimated land cost Rp million 30,000 30,000 15,000 27,000 27,000 27,000 27,000
Item
Dimension
Component 1. TALLO RIVER SYSTEM FLOOD FREE North Levee 4899 m South Levee 4970 m Canals (Panaikang and Tamalanrea Indah) 3370 m Flood Gates, Stabilisation Ponds, Pump Houses Parangloe River LS Kapasa River LS Biringromang River LS Pampang River LS Flood Gate and Box Culvert at Unhas LS Flood Gate and Structure at Tamalanrea LS Indah Component 2. ACCESS WITH HIGHER DENSITY Riverside Road Kera-Kera to Panaikang Connector to Ring Road and Panakkukang Bridges Tello Baru Biringromang River Pampang Kecil River River Transport Piers Buloa Pier Tello 1 Pier Tello 2 Pier Kera-Kera Pier Lakkang 1 Pier Lakkang 2 Pier Component 3. CREATE A CITY PARK Parks Landscaping Component 4. PROVIDE IMPROVED HOUSING Improving housing on the river-bank The new pemukiman terarah Compensation for structures on freed land TOTAL INVESTMENT Component 5. GOVERNMENT AND COMMUNITY CAPABILITY Capability improvement TAs LS Component 6. PROJECT MANAGEMENT DED and Supervision TA Project Management TA Component 7. Environmental Assessment Component 8. Monitoring And Evaluation Totals TOTAL 3% 1% 0.5% 0.5%
10.000 10.000 5.000 9.000 9.000 9.000 9.000
4395 m 1125 m 80 m 50,8 m 15,6 m LS LS LS LS LS LS 60 ha
86.000 9.600
565,348 150,146 25,367 13,327 7,558 975 975 975 1,533 1,533 1,533 27,638 998 1,500 9,200
258,000 28,800
4,250 1,204,394 28,000 36,132 12,044 6,022 6,022 1,292,614 474,050 1,766,664 474,050
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BBWS is conducting an extensive study of the river this year, from which the benefit of dredging will be made clear. Dredging then can be with Stage 2 of the riverside road along the north bank of the river, where the spoil can used for land fill provided that it passes environmental standards that can be studied later.
2.7.2. World Bank investment in for the entire riverside road

Our initial proposal was to complete the riverside road within the WB loan project. This proposal was dismissed for two reasons. The first is that the total value of the investment would exceed the amount indicated by the World Bank as Makassars appropriate share of the whole NUDP loan. More significantly, the benefit created by the riverside road, ie prime land for higher density development, has a limited market. High density development along the length of the road is likely to be reached over a period of fifteen years or more, indicating that phasing of the project would be appropriate. The selected section of the road to be built by the WB project has the following benefits:

It creates an alternative route for traffic from Jl Perintis Kemerdekaan to the city, providing a benefit to all traffic from the north and northeast of the city. It provides land where there is already indications of high demand for land suitable for high density development, that is, close to university campuses, close to existing commercial strips, and close to the Governors Office in Jl Urip Sumoharjo. It has a lower cost to benefit ratio, indicated by the ratio of the area land that can be developed for high density mixed use to the land area that must be freed for road and parkland.
Demand for land on the section of road to the north of the river will increase as the land along the outer ring road develops, making this a suitable location for a second stage of development. This section of the road has a slightly higher cost to benefit ratio, as more parkland must be procured compared to the land available for high density mixed use. The section of road linking Pampang with Tallo along the southwest edge of the development area has the highest cost to benefit ratio, as only a small part of the much of the side of the road is suitable for high density mixed use development. However, as development increases, so will the demand for alternative links to the toll-road and to the proposed new port area on reclaimed land of the shore from Tallo. In the long run this roadway will be economically feasible.
2.7.3. Investment to Create the Tallo Heritage City

At the request of Makassar City the Terms of Reference for this study called for the inclusion of works to help create a Heritage City in Tallo, The idea of helping develop this area was most attractive to the study team, which spent considerable time with the community and local government there. Most of the work that were referred to in the terms of reference were already included in other programs with central government sponsorship, including low cost housing, slum upgrading, drainage improvements, sanitation and solid waste management. By the end of the study, these works were already under way. What appeared to be lacking was an overall concept for creating the Heritage City, in a way that would engage the local community. Such a concept has been developed by the team and is included in this report, but because other parties are already involved, there are no recommendations for the World Bank to contribute to them. At a later stage, possibly in about five years when the city government and the community are ready for major developments in support of the Tallo Heritage City, there may be room for further World Bank involvement, for example, in developing a cultural centre and cultural education facility. The community has indicated a desire for a regional school of dance and music, and a museum.
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2.7.4. Investment on Lakkang Island

The TOR suggested some investment in Lakkang Island to promote tourism. After a series of FGDs in Lakkang, we discovered that the community has access to a wide range of community support programs, including programs aimed at building skills to serve a small tourism industry, but that the market does not exist and the community does not know how to address its real economic problems. The timing would not appear appropriate to promote investment, which may risk the introduction of a new community before the existing community is strengthen to implement the proposed policies for the island. Rather than immediately proposing an investment program, we have elected to provide technical assistance to strengthen the community and to identify economy opportunities with the community.
2.7.5. Estuary Dam

Both the consultants for the city spatial plan and advisers to the BBWS recommended the construction of an estuary dam at the river mouth. This would prevent storm and salination intrusion, and create a source of fresh water for the urban water supply. This attractive alternative was rejected for the following reasons:

High cost with limited short term benefit as alternative plans for city water supply would appear to be adequate Loss of the small amount of remaining mangrove forest on the river, which we consider an important component for the concept of retaining the original environment conditions for the proposed urban park Drop of about 50 cm in the average river level and change to fresh water which would have a negative environmental impact on the river bank ecology and economic impact upon fishermen without extensive investment on a marginal economic activity
However, we do realise that a drop in 50 cm of the average river level may be extremely important in about 80 years when sea level rises may exceed the current projections that are the basis for our calculations of the height of levees. We do not preclude the idea from future planning consideration.
2.7.6. Changes in land uses

The pre-feasibility team proposed some small changes in the location of the riverside road to those indicated in the draft RTRW in the final round of discussions with the city council. After consideration of the teams suggestions, the city has amended the draft RTRW so that now the location of this road in this report is consistent with the RTRW. The following changes have been made to land uses from those indicated in the RTRW, These also have been deliberated with the city planners and local government, and are agreed in principle, with the changes to be incorporated in the detail planning (RDTR) and zoning plans:

High density mixed use along the riverside road, and particularly at transportation nodes Residential development to be included within areas indicated for industry and warehousing, in order to create a balance between work place and housing. About 30-40% of these areas should be available for low income housing in addition to areas indicated for industry and warehousing Relocation of the western line of the proposed monorail to have a stop in Tallo A channel between Kelurahan Tallo and the proposed port reclamation, to provide fishermen with ready access to the sea.
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3 - IMPLEMENTATION ARRANGEMENTS
3.1. Overview and timing of arrangements
It will take time for Makassar to develop its implementing arrangements and competencies to manage and fund development the proposed urban development, including the creation of an urban development agency to promote private partnerships. According to regional government legislation, it is the job of line ministries to build competence (membina), and so it is appropriate from the outset for the Ministry of Public Works to engage as a partner for the project with the role building the capacity of the city to manage its urban development and urban services. It will also take time for communities to develop into urban civil society. The following diagram illustrates the timeline for establishing institutions for the Tallo River Area Development. The plan intends to use the arrangements for managing the proposed World Bank loan as the platform for creating the longer term arrangement and capacity.
Timing of implementation arrangements
The key elements of this figure are:

Loan preparation leading to the project being included in the 2014 Blue Book Institutional arrangements for loan implementation, land acquisition and land consolidation being completed by the end of 2014. Land acquisition and detailed engineering design for WB works being completed in 2015. Construction of works in 2016-2017 Development of urban development agency by 2016 Commencement of marketing of prime high density property in 2017 for opening of the new road in 2018.
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3.2. Urban development arrangements

3.2.1. Need for action
Makassar has been developing experience with major urban development management with reclamation south of the city centre, but this is small be comparison with the proposed works in Downstream Tallo River Area. Its current sectoral agencies have low level of competence as can be seen in the quality of design, implementation and maintenance of its urban infrastructure. Converting the Tallo River Area into an urban park, riverside city, major industrial and warehousing zone, heritage city and technopark, will require an extraordinary level of institutional and government-to-business coordination. A dedicated Urban Development Agency is needed to manage and be accountable for the expedition and success of the development.
3.2.2. Urban Development Agency

The options open to the government for a dedicated agency to be responsible are:

A functional team similar to the proposed PMU for the World Bank component Setting up a work unit (UPTD) within the city government Setting up a quasi-government institution such as an otorita Handing over the function to the province using the existing UPTD Mamminasata Creating a city-owned enterprise (BUMD) with the job of managing the creation of the entire area.
A cursory examination of these options suggests that setting up a BUMD would be the most appropriate alternative, considering the scale of the work to be done, the extent of work that can be contracted or licenced to the private sector, and the possibilities of being at least partially self-financed, through license fees, property development auctions, and bonds (obligasi daerah). A full analysis of the options is warranted in the feasibility study. The function of the Urban Development Agency would be to coordinate the development of the whole area to be handed over part-by-part to the regular city administration to manage. It would work as an agent for government operational divisions for the construction of assets, coordinating with Bappeda for planning and budgeting and with the city secretariat for administration. It would be empowered to

procure land, and arrange land consolidation build the park and its facilities draft a detailed spatial plan for the area for government and council consideration, including design standards and conditions for assuring housing for low-income residents offer blocks on the high density strip along the riverside road to developers, who would create mixed use offer blocks behind this strip to developers who would build industrial/warehousing estates including infrastructure, areas for communitybased housing and related community facilities such as schools, and coordinate with government agencies
It would be responsible to the Mayor and accountable to the public with a high degree of reporting responsibilities with public oversight
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Once the agency has been created, it would absorb the PMU created for the managing the World Bank project. The following diagram illustrates the agency and its relationship to Mamminasata.
Relationship with Mamminasata While the urban development agency will be responsible for overall development, acting as agent to provincial and city agencies for development, those agencies will continue to be responsible for providing public services within the area. The agency will need to organised to maintain strong relationships with each agency. It is proposed also that the urban development agency adopt safeguard management from the PMU, for the whole of the development.
3.2.3. Block development ventures

Experience in Singapore and more recently in Jakarta indicates that high quality and high density of warehousing and light industry is best achieved by specialist real estate companies that develop large blocks and sell or lease them to businesses. These companies may be current property owners who are required to comply with detailed planning requirements (RDTR), or block of land can be consolidated by the government or private-public partnership and auctioned to real estate companies to develop in accordance to the auction conditions. Such options can be determined from data collected on land holdings proposed in the preparation phase.
3.3. Kecamatan and Kelurahan management improvements

The key to improved oversight of urban land use is the engagement of the lowest levels of the government organisation, the kecamatan and kelurahan, working with the community. To establish this capacity, firstly these institutions must be given specific responsibilities, and secondly, physical boundaries of responsibility should reflect physical boundaries of issues of urban land use.
3.3.2. Kecamatan development

The Tallo River Development Area includes eight kelurahan covering parts of Kecamatan Tallo, Panakkukang, and Tamalanrea. Accountability for coordination of public services to the community in this rapidly-growing area will be made clearer and simpler by creating new administrative boundaries consistent with Government
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Regulation 19/2008 on kecamatan. With a new kecamatan for the area: 1) the development area management will be more focused and concentrated and easier to supervision and control by the Mayor; 2) land freeing arrangements will be more effective and efficient under one specially designed administration leading to faster and more professional development, and 3) coordination between the proposed urban development agency and all other government agencies will be simplified by reducing the number of institutions involved. In addition to the regular tasks of a kecamatan office, the new kecamatan and its kelurahan would be given special duties, special organisational arrangements, appropriately skilled staff and specifically budgeted programs, planned in line with evolving bureaucratic reform policy. The ancient kingdom of Tallo was divided into gallarang, administrative areas covering several villages for coordination, cultural affairs and justice based on adat law. The present division into kelurahan still reflects the ancient gallarang. While the traditional rule has long ended, community elders still are familiar with them. We propose that the community become involved in the formulation of the new kecamatan and its kelurahan, and that they create in each kelurahan a new selfgoverning community, calling them gallarang, as a collective of the community-based neighbourhood associations of RT and RW, and developing capacity to provide a wide of community services, much like the role of banjar in Bali. On the Tallo peninsular, the gallarang would be the driving force for the development of the Tallo Heritage City. On Lakkang Island the gallarang would be responsible for retaining the traditional identity of the village. The river-based and park-based community would form gallarang to promote their welfare in line with tourism of the area. In the areas behind the riverside road, gallarang would help develop resilience of the community in the process of rapid development from its current sparse population to a major city within a city. In total, the gallarang would be a symbol of the inheritance from the ancient Tallo kingdom, strengthening community identity with its cultural roots, developing a new identity for the area reflecting passed culture but addressing modern cultural and social issues, introducing new-comers into the new cultural and social identity. The idea of establishing gallarang was enthusiastically supported by the communities of Kelurahan Tallo and Lakkang, by the descendants of the King of Tallo, and by local academics. Their involvement and government support will be essential to make the idea a success and assure community support to the governments ambitious development plans for the area.
3.3.3. Development of Kelurahan Lakkang

As Kelurahan Tallo is a cultural heritage area for the city, Lakkang is a natural heritage area. It still largely maintains the authenticity of its natural and cultivated habitats and village areas. The city and community intend that it can be protected so as to benefit both tourism and the environment. The RTRW creates a Lakkang Strategic Protection Area in support of this intention. Both the administration of the island and civil society on the island need to be developed to achieve this intention. The administration of the island is currently share between two kelurahan in separate kecamatan. In order to simplify and focus administration, it is proposed to make it one kelurahan under one kecamatan. Community participation in development is needed to provide improved welfare for the people and to assure the community continues to invest in maintaining the traditional identity and participating in tourism, but will only occur with a well-developed and wellsupported program for creating and strengthening the Lakkang ]gallarang. Ecotourism is regulated by Minister of Home Affairs regulation 33/2009. Ecotourism is done by individuals and entities, and by local government that should facilitate individual and entity participation in accordance with Law 10/ 2009 on tourism. For ecotourism on Lakkang Island it is proposed that an Ecotourism Coordination Team be formed to
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oversee shared planning, implementation and control of ecotourism on the island. It would consist of representatives of the city administration, office of Lakkang Kelurahan, and the gallarang representing the community, supported by academia and tourist industry associations
3.4. Civil Society arrangements

Since 1998, there has been remarkable development of civil society throughout Indonesia, and civil society is strong in Makassar. Almost every urban village community has an organisation structure handling various aspects of welfare. These have been largely developed within national guidelines. Through FGDs with communities while preparing this study, the team identified areas where further development of civil society is most desirable to benefit from and contribute to the proposed project.
3.4.2. Gallarang
We have heard in several places of the traditional self-government of the community in gallarang, which are somewhat like mukim in Aceh. Above we have recommended that communities in the area re-establish gallarang as self-governing organisations able to work with government, particularly related to matters of culture appropriate to the Heritage City and its hinterland.
3.4.3. Arrangements for Heritage City

The most important initial role for the Tallo community is to work with all parties to define and plan the nature of the Heritage City. Once the concept is developed , then to work on developing cultural institutions, for example, for dance and music, for curating a museum, for formal occasions and celebrations, for architectural character and local building codes.
3.4.4. Arrangements for Lakkang Island

The most important initial role for the Lakkang community is to work with all parties to define and plan the nature of its conservation. Once the concept is developed , then to work on developing codes for building design, building use, agricultural activities, and events and activities to attract visitors.
3.4.5. Arrangements for the river community

As the river park develops, so will a new community that works there, ferry drivers, water recreation providers, providers of food and refreshments, and so on. From the outset, concepts of how this community works, and how it handles cooperation and disputes will be vital if this community is to reflect the image of Tallo.
3.4.6. Informal housing development arrangements

Special arrangements are appropriate for the housing subcomponents described in section 2: 1. Tallo Heritage City housing
It is proposed in the first instance that the city and DJ Cipta Karya determine how a combination of slum improvement and revitalisation can work for Kelurahan Tallo. The
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methodology for preparing plans for building and neighbourhood (RTBL) provides a good starting point for how the government can build its relationship with the community. 2. River-bank fishermen housing
Housing over water should be by permission of the government. A formal system of developing leasing arrangements for fishermen housing will need to provide adequate rights of tenure to enable families to borrow money for developing homes and livelihoods. The communities themselves need to develop in order to negotiate deals and market their services. 3. Guided densification
Community engagement in detailed planning (RDTR and RTBL) will need to be developed with the communities. 4. Informal housing within urban development blocks
In urban development blocks there is no existing community to engage in the RDTR and RTBL process. Means of progressive engagement of communities as they are built will need to be developed before the first informal housing area is developed.
3.4.7. Civil society in oversight

One of the main functions of civil society is in oversight of government. It is likely that new CSOs will form and local and national CSOs such as Walhi will become more involved in the area. We can foresee the need for an umbrella organisation, perhaps friends of Tallo, which can become the primary conduit of community aspirations to government on the development.
3.5. Land management arrangements

The project covers several square kilometres of land to be converted to park and urban use, or conserved. Effective, fair and transparent land management is essential to the success of the project
3.5.2. Land freeing under Law 2/2012

The rights of the government to free land for public use have been made stronger and processes made simpler and clearer with the new Law 2/2012 on land-freeing. Compensation can be in the form of money, replacement of land, relocation, or any other form agreed by both parties. The Governor is responsible for all land-freeing for public use, but may authorise the Mayor if it is considered more efficient or effective. A Land Acquisition and Resettlement Action Plan (LARAP) is prepared by the agency requiring the land, or a professional agency on its behalf, and submitted to the governor. The Governor forms a Preparation Team consisting of the Mayor, and provincial agencies involved such as the land agencies. This team notifies those who are affected by the plan, collects data, carries out public consultation on the plan and development, then declares a Location Determination for land to be procured and the agreed means of compensation. The Location Determination is published in the public interest. The determination is then executed. It is proposed for Tallo River Area Development that the Governor maintains his authority and does not delegate it to the Mayor due to the amount of land involved, much of it under the national jurisdiction of BBWS.
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3.5.3. Land consolidation proposal

The above arrangements are not applicable to land consolidation for non-public uses. Since the amount of land required to create the urban park and the riverside road is an additional burden on limited city financing, and as the making of this park and road adds significant value to the land adjacent to the road, we propose that the government creates a joint venture with the private sector and willing land-owners for freeing this land and an area for 80 metres along the road that would be zoned for high density mixed use. This 80-metre strip would not include any housing unless the owners are willing to enter the joint venture. The proposed organisation would be a BUMD with a government stake of 51% and private sector stake of 49%. Private sector shares would be in the form of the proportion of ownership of land in the area to be developed for park, road and mixed land use or proportion of funds to be used for purchase of land. The dividend for both government and investors would be in the form of ownership of a proportion of developable land according to the shares held. Legal advice supports this arrangement. Financial analysis suggests it is commercially feasible, provided that land speculation can be controlled. The feasibility study would need to examine it more closely and recommend to the city on how to proceed quickly both on measures to prevent speculation and on preparing the organisation.
3.5.4. Incorporating World Bank Procedures

The World Bank OP.412 have to be incorporated in handling land acquisition and resettlement activities in this project to address some gaps in GOIs law and regulation, including lack attention to replacement cost, vulnerable people, severely people, allowance (transition and moving/transportation), indigenous people or ethnic minorities and gender. Involuntary resettlement under development projects, if unmitigated, often gives rise to severe economic, social, and environmental risks: production systems are dismantled; people face impoverishment when their productive assets or income sources are lost; people are relocated to environments where their productive skills may be less applicable and the competition for resources greater; community institutions and social networks are weakened; kin groups are dispersed; and cultural identity, traditional authority, and the potential for mutual help are diminished or lost. Therefore OP.12 to address and mitigate these impoverishment risks. This policy covers direct economic and social impacts that both result from Bankassisted investment projects, and are caused by:
the involuntary taking of land resulting in: (i) relocation or loss of shelter; (ii) loss of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons.
To address the above impacts, the GOI have to prepares a resettlement plan or a resettlement policy framework that covers the following:
The resettlement plan (LARAP) and resettlement policy framework (RF) includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project. If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) provided assistance (such as moving allowances) during relocation; and (ii)
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provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site.
Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are: (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and (ii) provided with development assistance; (iii) such as land preparation, credit facilities, training, or job opportunities and provide transition allowance. Project also give special assistance to who category as vulnerable people, severely people, indigenous people or ethnic minorities. All activities in land acquisition and resettlement are gender perspective.
3.5.5. Housing improvements on the river

Stilt housing along the river is part of the heritage of Tallo, even though most of the existing housing is relatively new. The government regulation on rivers (PP 38/2011) article 17 (1) states: Where buildings are found within the river alignment, the building is left in its status quo and in stages must be arranged to restore the function of the river. The elucidation explains the meaning of status quo, as that the condition of such buildings may not be changed, extended, or improved. The meaning of in stages is in accordance with priorities, capacity, and public participation. Certain types of buildings are exception to this rule, including piers and bridges. Legal advice on this situation indicates inconsistency with environmental regulations, and 7 8 precedence both in Makassar and other parts of the country. It points out that the regulation prior to 2011 was more flexible but still required that such housing should not interfere the function of the river or with river management, or pollute the river. It also suggests a possible special interpretation of the regulation, and special efforts to assure that the river functions effectively. The first interpretation is that housing over the river may be permitted under license where the function of the river does not need to be restored. The second interpretation is that housing over the river may be permitted under license where the housing also serves as a fishermens pier. The licence proposed would require that the height of the floor to be above an agreed flood-line, that the housing has effecting disposal of garbage and treatment of effluents, and that the housing is not to extend any further into the river. Each house would require a licence in accordance with the government regulation. In addition, the detailed spatial plan would include standards of design and construction agreed by the community, that will to assure the housing reflects traditional forms.
3.5.6. Handling cases with contested titles or rights

Both in kelurahan Tallo (no longer in the proposed project) and in Pampang (at the site of the IPAL proposed by JICA), there are significant land holdings held by a fugitive of the law, and are likely to be difficult to secure for development. While the proposed
The city government with financial support from the province and national government have recently provided pathways to riverside housing, and build public conveniences that dispose directly into the river. Both Pontianak and Banjarmasin have had experience in trying to retain riverside stilt housing Makassar Tallo River Area Development Pre-feasibility Study
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project is not dependent on these cases, there is a risk that land at locations other than these may have similar problems. Also, the team often received comments at FGDs that land in the project area had been bought by developers. Our brief efforts to investigate this found no definite evidence, indicating a risk that unregistered agreements may lead to contestation of entitlement. Some comments were also received about improper allocation of rights, including land titles over parts of the river, for example over mangroves swamp. These cases indicate a need for the feasibility study to carefully examine entitlements every piece of land that is needed for the project.
3.6. Implementation Arrangements for the Word Bank Project

3.6.1. Central government PMU
The central government will form a PMU for the World Bank project that includes Tallo River Area Development.
3.6.2. Makassar Project Management Unit

The city government has been asked to establish a Project Management Unit, as a functional organisation under the Mayor, with the responsibility to implement works within the Tallo River Area that are included in the agreement with the World Bank. The Mayor will appoint a competent head of this unit, with competent managers reporting to him. It is recommended that they hold senior functional positions (jabatan fungsional) in order that their competence is properly rewarded. The six positions proposed are:

Secretary responsible for administration, reporting and public relations Project manager for river-works, possibly seconded from BBWS, who will be responsible for planning, budgeting, contracting and oversight of component 1 works. He will act as BBWS agent for the construction of these works, liaising with BBWS and work to BBWS standards. Project manager for roads, parks, and housing, possibly seconded from the city public works agency or from the provincial public works agency, who will be responsible for planning, budgeting, contracting and oversight of component 2, 3 and 4 works. He will act as agent for Public Works Agency and Parks and Cleanliness Agency for the construction of these works, liaising with them and work to their standards. Project manager for land and technical assistance, who will be responsible for planning, budgeting and oversight of land procurement and resettlement and institution building, and for planning, budgeting, contracting and oversight of technical assistance. He will coordinate with land freeing committees, Provincial Government, and National Land Agency (BPN) offices of South Sulawesi and Makassar City. Financial manager who will be responsible for compiling the budget, promoting productivity improvement, accounting and financial reporting
The managers will be assisted by a Management Support Technical Assistant (TA) and engineering design and supervision consultants. The PMU will report to the Mayor on its performance agreed with the National PMU and the World Bank. The PMU coordinates and consults with the Regional Secretary and Bappeda Makassar in matters of administration, planning and budgeting.
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Organisation of PMU
PMU will also work principally with the following agencies in the city, province and national government as shown in the accompanying figure. While the principal city agencies working with the PMU will be the Spatial Planning and Building Agency, Parks and Cleansing Agency, Culture and Tourism Agency, Kecamatan and Kelurahan in the area, and the Makassar Mamminasata Urban Development Coordination Board when 9 and if established, the PMU is likely to have links with all agencies to some extent.
Working relationship with partner agencies
Provincial regulations on Mamminasata require the city to form this functional unit, but the city has not year implementing it. Makassar Tallo River Area Development Pre-feasibility Study
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While the PMU will coordinate primarily with the Provincial Governments Mamminasata Coordination Agency, BKSPM Mamminasata, and the Provincial Public Works Agency for the construction of the outer ring road, it is likely to work with the spatial planning and human settlements agency as well. The primary links in central government will be BBWS which will be responsible for flood mitigation, and Cipta Karya which will most likely be the implementing agency as well as partner for the housing improvement components.
3.6.3. Financial management arrangements

The costing plan attempts to avoid complex financial sharing arrangements, preferring to have clear demarcation of work to be funded from different sources, considering that the Bank is only working on a small proportion of the total amount of public infrastructure in the project area. Main features of financial management can be grouped into the following categories:
The city is establishing a new agency for financial management, based on Government Regulation No. 84/2000 on Guidance of Local Government Organization and Ministry of Home Affairs and Autonomy Decree No. 50/2000 on Guidance of Local Government Organization and framework regulations of local government. This new agency will start later this year (2013) New budgeting system based on the national SPAN system that will introduce Performance-based budgeting with outcomes or performance being the measure of effective budgeting. This promises to introduce directly linkages between performance and budget operational efficiency and more flexibility with more accountability Application of bureaucratic reforms to the financial management agency, including appointment of staff based on competency, and professionalization of the staff,
The Bank reviews procurement plans and individual procurements, and usually commissions BPKP to audit the procurement process and contract documents, in order to verify that agreed procurement procedures are strictly followed and that the national standard bidding documents are adopted. The following diagram illustrates proposed financial management arrangements. The following points describe the links shown on the diagram: 1. The PMU becomes the implementing agency for investments of each city operational unit 2. Budgets for works are prepared with the coordination of Bappeda 3. Contracts are tendered through the city E-procurement unit. The citys eprocurement system is designed to improve procurement by improving efficiency & effectiveness, transparency and accountability, responsiveness, fairness and non-discrimination, and a common platform for all procurement. 4. The PMU is supported by a financial management TA who coordinates account reporting and financial management with the new city financial management unit 5. The financial management unit coordinates asset management with operational units 6. The financial management TA also coordinates account reporting and financial management with BBWS 7. Budgets for river works are prepared by coordination between PMU and BBWS 8. The financial management TA coordinates with and supplies reports to the national financial management TA 9. The PMU works with the national PMU on budgeting and financial management 10. The PMU coordinates budgeting and financial management reporting with the Land Consolidation JV for procurement of land along the riverside road
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Financial management arrangements These arrangements assure the accountability of the program at each level:

City programs and expenditures are accountable through the Walikota to the City Council and the people Performance of the Land Consolidation JV is accountable to the city and also to its minority shareholder National programs and expenditures are accountable through ministers to the President, parliament and the people Performance of the World Bank loan is accountable to the World Bank
3.6.4. Governance and Anti-Corruption Plan

The project will require a governance and anticorruption action plan, paying particular attention to the risks of collusion in land and in the management of the proposed land procurement joint venture agency.
3.6.5. Environmental safeguard management

The PMU will need to establish formal relations with both the city and provincial Environmental Protection Agency, and there is likely to be cause for working with the national relics agency (Balai Pelestarian Cagar Budaya), and work closely with the World Bank on management of safeguards. The agencies that will be involved in safeguard management are:
Activity proponents, who will be responsible for preparing the EIA framework, the EIA, and environmental management and monitoring plans (KA-ANDAL, ANDAL, RKL&RPL); for consultations with those who will potentially be affected and preparation of documents for consultations, including project description, detailed work breakdown, and description of potential risks, and reporting the outcome in the EIA report; reporting on the execution of the management and monitoring
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action plan to BLHD and Mayor; developing procedures for public complaint handling and responding to complaints before construction, during construction or planned operations, and settling them by consensus
BLHD which is responsible for reviewing and approving EIA, and as a member of the environmental impact assessment commission, also responsible for oversight of the implementation of the management and monitoring plans and for general monitoring of the environment Amdal commission which has authority and is responsible for studying and approving EIA framework, EIA and the environmental management and monitoring plans prepared by proponents. Consultant Support: proponents may employ consultants to help prepare their environmental documents
3.6.6. Results monitoring and evaluation

The World Bank has indicated it will develop a monitoring and evaluation system for the whole project. It is anticipated that this system will involve the appointment of independent consultants, and will also provide valuable assistance to accountability systems in Makassar and Indonesia. In the feasibility study, the city should assure that the requirements of this system complement and enhance the governments accountability and supervision mechanisms, particularly the consolidation of reporting into the various reporting systems and the role of the local council (DPRD).
3.7. Sustainability
The intention of the institutional arrangements described above is sustainability of the development of the Tallo River Development Area. It is dependent on careful design of these proposed arrangements, government assistance and technical assistance.
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4 - PRE-FEASIBILITY ASSESSMENT
4.1. Scope
Summary assessment: While the project is very large and engages very many stakeholders, the scope is appropriate to support the city to implement its planned urban development and spatial plan, and steps are being taken to engage partners.
4.1.1. Scale
The World Bank has asked the consultants to justify the large scale of the overall project, and to carefully define its boundaries. The boundaries defined in section 2.1 are selected to create an area where the city can strategically manage urban development in the land that is now undeveloped because it is subject to regular flooding, and identified in the citys spatial plan for development. The RTRW anticipates the area within the riverside road to be a city park, and the area outside this to be developed for urban uses, in accordance with national policies for higher urban densities and with public-private participation in its development.
4.1.2. Relationship with the work of other parties

1. Provincial government The main provincial agency with concerns for this area is the Mamminasata urban development agency, set up to coordinate urban development in the greater Makassar area. Mamminasata plans have constrained the preparation of the citys RTRW, which was reviewed by Mamminasata for the Governor before central government review and approval. Mamminasata planners and executives have been consulted during the preparation of this study. The provincial government is responsible for construction of the Outer Ring Road which is a provincial road. Most of the land for this road has already been procured, and construction in the project area is anticipated to start in 2014, making the province a partner with the city for the development of the area. The city works closely with the provincial tourist agency on plans to develop tourism in Makassar, and thus the agency contributes to plans for creating the Tallo Heritage City and Downstream Tallo Parkland. 2. National government
Bappenas is preparing both the National Urban Development Program (NUDP) and the national urban development strategy, soon to be presented to cabinet for ratification as a Presidential Regulation. This study recommends development in Makassar consistent with this new policy, making Makassar the pilot for its implementation. Bappenas is sponsoring the final workshop for presentation of this report. Flood mitigation and river management on Tallo River is the responsibility of the national river management agency in Makassar, BBWS. This agency is part of the directorate general for water resources in the Ministry of Public Works. Thus the ministry becomes a partner with the city for the development of the area. This study has been prepared with ongoing consultation and support from BBWS. The Ministry of Public Works, through DJ Cipta Karya, has several programs working in the development area, for slum improvement and urban infrastructure upgrading. Its
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methodologies for housing improvements and urban revitalisation are to be adopted throughout the development area, and it has been proposed that DJ Cipta Karya become an active partner in helping develop Makassars capabilities in managing it. Both the Ministry for Education and Culture and the Ministry for Tourism and Creative Economy have programs that support the development of Tallo Heritage City and tourism in the area. The national agency for Cultural Relics in Makassar has been active in consultations during this study. The Ministry of Transport has commissioned detailed engineering design for a busway system in the city, similar to other cities. This study recommends a review of this proposal, to assure better integration with urban development policy. The Ministry of Finance regulates accountability for public funds and local government borrowing. It also is introducing a new financial management system (SPAN) that will greatly enhance the ability of the city to manage the budgeting and treasury for the project. It is proposed to appoint consultants to support Makassar introduce SPAN. The Ministry of Home Affairs has overall responsibility to the President for regional autonomy, and regulates many aspects of development by local government. With the Ministry for Administrative Reform it will soon start overseeing bureaucratic reform in Makassar, as a selected pilot city for reform. This will include implementation of new laws on the civil service (ASN), government administration and internal accountability, each of which will promote professionalism and accountability for performance. Implementation arrangements proposed in this report are in line with this new policy, and Makassar will be able to include these arrangements within their bureaucratic reform programs. 3. Other donors
The following donors have involvement in urban development in Makassar that affects the project:
JICA has worked for over twenty years on urban development planning in South Sulawesi, helped to prepare many sectoral plans, and the Mamminasata spatial plan. In 1995 they proposed a major sewerage system with its IPAL at Pampang covering about 80 Ha of land. The status of this proposal is no longer clear. They are also preparing proposals for ongoing support to Makassar. IndII-AusAID recently prepared a sanitation plan, with a series of sewerage treatment plants (IPAL) with one located near Rappokalling and another close by at Buloa. These use newer technology requiring far less land that the JICA proposal. There is overlap in the service areas of the IndII and JICA proposals ADB is funding the slum improvements program in Tallo. The Ministry of Public Works and the local public works agency wish to expand this ADB support into an integrated urban development project including the Tallo Heritage City, and this study recommends an amendment to the approach to assure the appropriate revitalisation of Tallo. The World Bank has been involved in a number of initiatives for Makassar, including support to the development of the sanitation system at Losari under the Metropolitan Sanitation and Health Project. The bank also continues to support urban PNPM-Mandiri with an emphasis on community-based sanitation
4.2. Economic Assessment

Summary assessment: the economic benefit of the whole project is assessed qualitatively, and would appear to be very high, while the economic benefit calculated for the World Bank project is also very high at 36%. The city has more than adequate capacity to borrow, but a questioned history on repayments. The proposition to form a joint venture on land consolidation also would provide the partners with an attractive rate of return.
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4.2.1. Qualitative economic assessment of the overall project

The greatest economic benefit from the project is the contribution that this centrallylocated area can make to the economy of Makassar by creating higher density living, and providing housing and work for a large population. The size of this new economy will depend on the density of development agreed in the review of Mamminasata plans, and development of detailed spatial plans. This study does not specify a target, leaving this to a political process that should be led by the incoming Mayor. Our assumptions are that residential density of the new area would be highest at transportation nodes, to encourage public transport and increase efficiency. We also assume high density for industry and warehousing, which will require multistorey developments, and a move towards leasing of industry and warehousing facilities. The economics of this should be investigated further with the real estate sector in the preparation of RDTR. Other non-measurable benefits include:

Benefits of the city parkland, including benefits of the stabilisation ponds that keep the river clean Benefits of introducing more efficient urban development management Benefits of guiding low-income residential areas to avoid slumming
4.2.2. Economic Analysis of World Bank Project

1. Project Costs The cost of investment for infrastructure development (land and construction) in the Tallo River Development Area, taken from the table in section 2.5 above, is estimated at approximately Rp 1.68 trillion financial price or approximately Rp 1.72 trillion economic price. As the economic benefit of river transport cannot yet be calculated, the costs of the proposed ferry piers has not been included in this economic analysis. Adjustment of the financial price to economic price is based on based the following conversion factors: fuel subsidy 1.72; shadow price labour wage 0.75; and taxes are not taken into account in economic evaluation. The investment costs are calculated according to constant price levels predicted for 2014. Construction of the project is assumed to take three years, of which the first year is used for the acquisition of land and preparation of detailed engineering design. A fourth year is needed for maintenance period and completion of capacity building efforts Land to be acquired amounts to about 156 Ha, along the riverside road and parkland, and for levees and stabilisation ponds. Some 85 houses are affected. Land acquisition price according to the market price average is estimated at Rp 300,000 per m2 and building costs an average of Rp 50 million each. Recurrent costs are expenses for operation and maintenance after the project is completed, based on the assumption of 0.5% of the investment cost. 2. Project Benefits
Measurable benefits of the infrastructure development in the first phase of development are assessed by land value increase to be expected from all the proposed construction under the proposed World Bank loan project. This combines the increased value of land made flood-free that has no transport accessibility (estimated at Rp 50,000 per m2, based on market indicators, over an area of 1,117 Ha of land freed of flooding), and the increase in value of the land immediately adjacent to new main roads that will command a greatly increased value (where a conservative figure of Rp 800,000 per m2 has been taken for an area of 42 Ha).
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3.
Economic Internal Rates of Return
Economic Internal Rates of Return as an indicator of the feasibility of the project is based on the following assumptions: the costs and benefits are assessed at constant prices by 2014; the opportunity cost of capital of 12 percent accordance with the Foreign Treaty; a 20-year time horizon; recurrent cost of 0.5% of the development cost of levees, roads, bridges, and stabilization ponds. The cost of the acquisition of land by the end of the evaluation period is calculated as residual value. The benefit gained from incremental increase in land value is calculated at Rp 894,500 million. Based on these assumptions, the EIRR is estimated to be 36.1%, far in excess of the minimum required for economic feasibility of 12%. The calculations are provided in the tables on the following page.
4.2.3. City capability to borrow

The basis for calculating the capacity of the city to borrow is that the total of unpaid loans and proposed borrowing should be less than 75% of the total annual general income from the previous year. Receipts for 2012 were slightly over Rp 2 trillion, making a total borrowing not to exceed Rp 1.5 trillion, equivalent to USD 150 million. The two main expenses in the proposed loan are for flood control and city roads. It is appropriate that the roads be funded from a subsidiary loan to the city. Appropriate allocation of the costs of flood control works is not so clear. The benefit is clearly for the city, and from a perspective of equity perhaps should be paid for by the city. But in fact the government has declared that river works and major drainage in Makassar are a national responsibility, and therefore should not be the citys financial responsibility. In either event, the value of the proposed loan with be well within the citys capacity to borrow. Current maturities of Long Term Debt as of 31 December 2012 are listed in the following table. All these loans date from before the monetary crisis of 1997, the reform era and decentralized local government. The total short-term financial debt (rounded) in the citys financial statement as of 31 December 2011 was Rp 32,248 million and as of 31 December 2012 Rp 32,648 million (as audited), indicating that the debt increased by Rp 400 million over the year. Accrued Interest due as of 31 December 2011 was Rp 31,593.million and as of 31 December 2012 was Rp 27,442 million (as audited), indicating the city reduced its interest payments due by over Rp 4,000 million. The city has not been repaying its debts according to schedule and has accumulated Rp 55,000 million in penalties for non-payment. Financial debt, accumulated interest and accumulated penalties add up to Rp 115,000 million. The city had a surplus of Rp 205,000 million, about 10% of its budget. It has the capacity to pay off the entire debt, but elects not to do so. This may in part be due to the opinion that the loans were foisted upon the region in a previous era, and there is no sense of obligation to pay. Loans still on City Makassar accounts (Rp million rounded)
Ex LOAN IBRD NO.3340IND IUIDP 8,950 RDA115/DP3/ 1993 1993 15 years Ex LOAN OECF NO.IP-415 WATER SUPPLY 15,893 SLA833/DP3/ 1995 1995 15 years Ex LOAN IBRD NO.1653-IND URBAN III 2,711 SLA. 12/009/IBRD/ PP 1979 1982 Ex LOAN IBRD NO.2408-IND URBAN V 6,901 SLA. 159/DDI/84 1984 20 years
DESCRIPTION
MoHA
MoF
Project Title Amount of Loan Number of Agreement Year of Agreement Period of Loan
MARKETS 658
CARGO TERMINAL 3,500 RDI185/DDI/ 1987 1987 15 years
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Basic Assumption Used in Economic Evaluation

Total Items Mill. Rp Investment costs Tallo river system flood free Access with higher density Create a city park Provide improve housing Total investment costs Project management and capacity building Recurrent costs 0.5% of investment costs Compensation : 396,095 809,635 27,731 9,630 1,243,091 88,220 6,215 Items Mill. Rp Mill. Rp 469,800 4,250 474,050 336,000 558,500 894,500 Rp/Unit Total
Land acquisition 156.6 Ha Building 85 Unit Total
3,000 50
Benefit (Incremental land value) : 8,000 High density 42 Ha
Other land 1,117 Ha Total 1,159 Ha
500
Time horizon 20 tahun, opportunity cost of capital 12%, residual value sama dengan land acquisition Economic Internal Rates of Return
Incremental Costs and Revenues Year Costs Project Cost 2,015 2,016 2,017 2,018 2,019 2,020 2,021 2,022 2,023 2,024 2,025 2,026 2,027 2,028 2,029 2,030 2,031 2,032 2,033 2,034 2,035 474,050 665,655 665,655 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 Recurrent Costs Total Cost 474,050 665,655 665,655 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 6,215 Benefits Land Value Net Cash Inflow (474,050) (665,655) (665,655) 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 888,285 1,358,085 36.1% Sensitivity Analysis Increase Costs 10% (1) (521,455) (732,221) (732,221) 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 887,663 1,357,463 33.5% Decrease Benefits 10% (2) (474,050) (665,655) (665,655) 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 798,835 1,221,655 33.2% Combined (1) and (2) (521,455) (732,221) (732,221) 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 798,213 1,221,033 30.7%
894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 894,500 1,364,300 EIRR
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This situation should not be allowed to continue. By far the most logical action would be to eliminate these old debts, and to establish proper accounting and billing of debts and interest payments in both national and regional government budgets. Alternatively they could be restructured. The city is in urgent need for capital for many purposes, including monorail, road and drainage improvements, education and other urban development projects. The city has capacity to borrow through loans like the one proposed, through bonds or through PPP. But the city is also in urgent need to increase its expenditure on routine functions such as road and drainage maintenance, solid waste management, education and health. This suggests that perhaps the feasibility study for the loan should take some effort to examine the capacity to borrow from a more managerial approach than strictly by the 75% formula mentioned above. Also similar studies in the other cities under the proposed loan may be able to reveal common management issues and perhaps equity issues in the formulae used in determining funding to cities in Indonesia.
4.2.4. Financial Feasibility of Land Consolidation for Riverside Road

The proposed land consolidation joint venture will be asked to acquire about 100 ha of land for the park, road and mixed-use development in 2015, and would aim to sell the mixed-use portion of about 38 Ha within three years. The market value of the land is now about Rp 300,000 per m2, meaning the city will be seeking a contribution valued at Rp 300,000 million from its commercial partners. The market value of land on main arteries is generally over Rp 2 million per m2. Calculating a conservative sales price of Rp 1.5 million per m2, the joint venture would expect an income of Rp 760,000 within a period of three years. With a 49% stake in the enterprise held by the commercial partners, this still represents an attractive investment.
4.3. Environment Impact Assessment

Summary assessment: future works for climate change have been considered, and the need to keep the river clean. Special attention will be needed to assure improved bio-diversity. A full EIA is still needed
See Annex C for further information on environmental impact and draft TOR for the environmental impact assessment.
4.3.1. Climate change consideration

In Makassar in the past, there has been an increase of temperature since 1981 and a decrease trend of rainfall since 1950 for dry season rainfall. International models of climate change have greatly improved over recent years, but still have significant uncertainties, particularly at a local level. By far the most sophisticated and fine-tuned model for South East Asia has been developed by CSIRO, working with academics and government in throughout the region including Makassar. The study team met the CSIRO researchers and discussed their findings. Although still indicative only, for the horizon 2100 projected rainfall is expected to slightly decrease, though the sensitivity of the model indicates a less likely scenario of a slight increase in rainfall. A decrease of stream flow is projected, a decrease of catchment soil erosion, potential reduction in water supply. Extreme river flooding is likely to decrease, but sea level rise may create a wider coastal inundated area. The projected sea level rise is 56 cm by 2050 and by110 cm in 2100. For the climate change impacts mitigations the followings are suggested:
Structural measures including levee along the coastline and riverbank for sea level rise and storm surge and retention basin for storage of water supply.
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Non-structural measures including warning and evacuation systems for disaster management and catchment environmental rehabilitation for flood peak reduction.
The study concluded that the impact of climate change in the area is less dramatic than in most parts of Indonesia, and it is far too early to make investments for defences. The river park has been designed so that the height of the levee can be increased later.
4.3.2. River Work Related Environment Issues

River works consist of dredging, disposal of dredging material in landfill, and river transport. River straightening was considered during the pre-feasibility study. No dredging is planned for the first stage of the project. The dredging results in a change in the pattern of erosion from water flow, that risks additional material being carried away by current to silt the lower reaches of the river, and abrasion of the riverbank where it is planted with mangrove and palm trees. Damage the mangroves will cause loss of water wildlife such as fish, prawn and crab, which will further impact on the income of the fishermen. Dredging requires a disposal area that will affect change in the topography of the disposal area (which could be a positive impact), as well as the possibility of heavy metal contamination that could create health risks. Water quality data obtained show either 1zero heavy metals, or levels well below safety limits (see tables in Annex C), but the EIA should make sample tests of materials, and require regular testing of dredging materials in the RKL/RPL. The disposed material is likely to be inappropriate or inadequate for the levee, and fill material will be brought in from Goa or Maros. It is most likely suitable for normal land filling behind the levee.
4.3.3. Keeping the Tallo River Clean

Water quality in the area is influenced by the development of the industry, the development of settlements and the process of erosion and sedimentation from upstream. Waste is in the form of solid waste and liquid waste. Mostly the solid waste is domestic garbage that is disposed into the city drainage system and flushes out during storms. This garbage washes up under the housing of fishermen on the lower reaches of the river, who get blamed for it. Mostly the liquid waste is from human sewage seeping from inadequate septic tanks. Fishing communities on the river use fishing lines, fish ponds and fishing rigs. Based on information from the Lakkang Island community, the volume of fish in the river has dropped due to water quality. BBWS contends this cause, and it is more likely to be a reduction in the breeding of the fish, which may be due to water degradation or loss of breeding places. There have been cases of mass deaths of fish, most likely caused by industry disposing of waste, suggesting the need for higher monitoring of factories and applying penalties for failure to treat waste properly. The quality of this water affects aquatic plants and biota and coastal fauna, which threatens the economy and attractiveness of the area. The success of government programs to conserve Lakkang Island and create river tourism depends on the condition of water quality of river Tallo. It is essential that the river be kept clean. The program is designed with water quality stabilisation ponds that will catch solid waste and reduce the liquid pollution. The city government with support of central agencies and donors is improving sanitation. This is excellent but not enough, the city needs also to improve drainage maintenance and garbage collection service.
4.3.4. Increasing Biodiversity

One of the project's goals is to achieve conservation of Lakkang Island and Tallo River as an urban green area for ecotourism. The mangrove planting program along the river, on Lakkang and dense trees around stabilisation ponds will have an impact on
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increasing biodiversity which in turn will promote ecotourism. Planting in the riverside parks should be selected to encourage birdlife. We propose the city consider fish breeding to improve the outcome of the fishermen.
4.4. Social Impact Assessment

Summary assessment: the proposal creates work place and living for a very large low-income population. A large proportion of this working population will be women. It minimises displacement of people though loss of livelihoods in fish-ponds will need specific attention. The project will engage a very large construction workforce and special attention will be needed to assure their wellbeing.
See Annex E for further information on social impact and draft TOR for land acquisition framework.
4.4.1. Applicable Safeguards

Our proposals and our impact screening have been based on safeguard policies OP/BP 4.01 (Environmental Assessment) and OP/BP 4.12 (Involuntary Resettlement). The project will incorporate these two of the Banks safeguard policies. Other safeguards are not applicable as we found no evidence of Natural Habitats, Pest Management; Physical Cultural Resources, Indigenous Peoples, Forests, Safety of Dams, Projects in Disputed Areas or Projects on International Waterways. In line with the project mainstreaming whic h pro poor growth the project will pay attention to the social impact that potential affect the poor people, as described the following paragraphs.
4.4.2. Social impact depends on densities agreed to in a review of Mamminasata plans

The social impact of the project depends on the size of the working and resident population, that in turn depends on the density of housing, warehousing and industry agreed to. In the proposed lowest case scenario, over 200,000 low income jobs will be created, and housing will provide for over 300,000 people. Most of these are likely to be urban migrants, from within South Sulawesi and beyond.
4.4.3. Major emphasis on helping the poor through job creation and housing close by
There were about 239,000 poor people in Makassar City in 2011 (BPS data). This figure is approximately the same as the number of low-income jobs that are expected to be generated in the development area. The project is designed so that these people will be able to find housing close by their place of work in industry, commercial centres and warehousing.
4.4.4. Density of development, public transport orientation

Increasing density of development in mixed use development, industrial and warehousing areas, apartment buildings and informal housing areas will make public transportation more attractive and more efficient, and walking more attractive. This will have a direct and positive effect on low income households. Providing high income housing along the riverside road with housing for people employed there will help avoid problems of stratification of society.
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4.4.5. Minimised social dislocation

People live within complex social systems that consist of sub systems such as home, livelihood, social net-works, community institutions, cultures, and so on. One sub system is disturbed will cause some social dislocation, disturbing peoples lives with the risk of creating social problems. The project has followed the intention of the RTRW by minimizing social dislocation of communities. In particular, the number of families to be resettled has been reduced to a minimum, the community on Lakkang Island is not to be relocated (as has been the case in some Mamminasata documents), and fishermen housing on the riverbank is to be maintained (contrary to current public works policies).
4.4.6. Assistance to people who lose livelihood

The main social dislocation will be the people working fishponds and rice fields. The project will attract investors to the Tallo River Area Development. Land zoned for their future investments will be bought from their owners, and the current uses of the land will lose their livelihood. The project should to pay attention to these people through a livelihood restoration program, helping them find alternative livelihood suitable with their new condition. It is not easy to start a new livelihood, and technical assistance must be provided for them to re-establish a productive life in a sustainable new livelihood. Assistance to river-based and Lakkang-based communities The social, economic, environmental and cultural potential of the communities who live on the river and Lakkang Island should be developed for the mutual benefit of the communities, the environment and tourism. Social cohesion and their culture should be seen as social and culture capital, used to attract tourists to come visit this area, enjoying its natural beauty and contributing to the local economy. Cultural relics in the island Lakkang include Old Grave Daeng Lakkang Ri, Old Wells, 7 Japanese bunkers and logistics storage places, bomb shelter, and a hiding place. The natural potential can be used for education for respecting to the environment, landscape, ecology and agriculture. The potential of culture that can be optimized is local wisdom in creating and managing their environment . These potentials need to be managed, resulting in a blend of natural, social, cultural and environmental conservation as well as to realize the ecotourist. The proposed Technical Assistance package needs to be carefully designed to promote awareness to the communities that the people of Lakkang and the river-based people have their own value in maintaining their community and their conservation area. The Technical Assistance also needs to facilitate strong community institutions at the village or community level, grouping people based on their business interests for supporting eco-tourism area, through the promote awareness, motivation, facilitation and assistance to achieve self-reliance in managing Lakkang Island and river-based community as limited conservation and tourist areas.
4.4.7. Gender
Makassar has a strong record on gender mainstreaming. It has gender regulations and emphasises the role of women in development. It formed a secretariat and team to promote gender issues in 2002, long before the province did the same in 2010. In 2010 it strengthened its program by establishing focal points for gender mainstreaming. The team found gender mainstreaming in practice. During FGD for in this study, level of women attendance was around 25% to 30% with active participation during discussion and active role in decision-making process. In 2010the city established women care solidarity groups in Tamalanrea, Tallo and Ujung Tanah, giving training and technical assistance to women. Since 2011 special development workshop (Musrenbang) were conducted for women. There is a relatively high proportion of women in the workforce, as factory workers, in trade, in teaching, and others. We estimate that over 200,000 jobs will be created when
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the Tallo River Area Development is completed, and a majority of these jobs is likely to be filled by women.
4.4.8. Possible exposure to HIV/AIDS

The possibility of exposure to HIV/AIDS is due to the significant number of migrant workers on the sites during physical construction. It is estimated that about 30 thousand workers will be engaged in construction in the area over period of ten to fifteen years. Special precautions will need to be taken to protect them from HIV infection.
4.4.9. Other vulnerable groups

New development will attract mainly a younger population, both male and female. It can be expected that there will be a high incidence of new family formation. The existing population in Tallo, Lakkang and along the river is aging, with a large proportion of the fishing population being senior citizens.
4.5. Summary of Key Risks

The following table indicates our assessment of a range of risks:
Risk factors Block development in northern area
Description of risk H high M medium L low Real estate market may not be attracted to block development approach The city may approach its reforms in a bureaucratic or regulatory approach missing opportunities to dramatically improve effectiveness and productivity The province may continue its busway proposals with suboptimal design, and may not agree to alternative route via new roadway As population increases the river will become more polluted Historic data on fifty-year flooding are not relevant for future 50-year flooding Land needed for development may be the subject of contestation that can delay or even inhibit progress Regional government may fail to raise funds for land-freeing Dredging material may contain heavy metals and cause further erosion The proposed ferry service may not be commercially feasible
Mitigation measures U urgent D distant Engage REI members in design of block development licenses WB should approach the new mayor and obtain early agreement for a managerial approach City and WB should raise issue of busway design with Ministry of Transport. Urban Management: improve sanitation management Project: building stabilisation ponds. We have adopted a similar approach as the city has for its existing and proposed reclamation areas Careful analysis of all land entitlements in the feasibility study Introduce MTEF approach to budgeting (part of SPAN) Strict environmental safeguard management Conduct feasibility study before final agreement to include piers in program, determine any Public Service Obligation and arrange subsidy scheme L
Risk Rating
Bureaucratic reform
Busway
HU
Clean river
HU
Climate change
HD
Contestable land titles
MU
Counterpart funding Dredging
L L
Ferry
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Risk factors
Description of risk H high M medium L low Corruption and incompetence in regional government in financial management reforms (1) Laissez-faire approach to development will prevent high density being achieved (2) City or Mamminasata may refuse to adopt higher density until national policy is clear The city may not agree to assuring housing within the RTRW-marked areas for industry and warehousing The city may be dedicating excessive land for the IPAL at Pampang, which has a service area overlapping with the IndII proposals The proposed JV may fail to raise funds, and/or funds or land may be misappropriated Corruption and incompetence in regional government in land use rights and controls Speculators may be attracted to grab lands
Mitigation measures U urgent D distant Specific TA to assist city to implement best practices in citys financial management. Contracting accounting and financial management skills for PMU. Create urban development agency commissioned to promote and control high density Finalise national urban development policy. Call for a review of all planning in order to comply with higher density targets. Review Mamminasata plans requiring higher density Make loan condition to include such housing in RDTR. Review the proposals. If the Pampang facility is needed, use more land-efficient technology. Redesign riverside road and spatial planning in Pampang accordingly Careful design of JV, careful appointment of management, careful and public oversight Major effort to engage kelurahan and community in land development control. Program to make system more transparent Speedy preparation of RDTR, regulating public announcement of intention to transact, NPWP based on no access to land National review of urban financing system. Improvements in productivity of city government Emphasis on improving performance in bureaucratic reform program. Establish Urban Development Agency as dedicated organisation to manage development. Capacity building program for kecamatan and kelurahan, and empowering communities in self-governance. Licencing private sector to develop city blocks. Make loan condition to include in RDTR. Regulation of private sector development, guidelines on orderly informal development, community support
Risk Rating
Financial management
HU
High density development
MU
Housing in industrial land use
IPAL
HU
Land consolidation JV
HU
Land development controls
HU
Land speculation
HU
Limited capacity to borrow
The citys capacity to borrow will be consumed by this one project
Limited capacity to perform
The city has low track record in urban management and may not be able to manage this assignment or improve its performance
Pedestrianisation
Private sector v poor
The city may not agree to prioritise pedestrian movement throughout the area. The involvement of the private sector in developing the area will conflict with the interest of the poor to find housing close to work
HU
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Risk factors
Description of risk H high M medium L low Corruption and incompetence in regional government in procurement The city may not agree to retain and improve stilt housing, Additional traffic on the river may introduce pollution Tallo Heritage City will not develop with as proposed
Mitigation measures U urgent D distant Adopt best practices in procurement. Use eprocurement agency. Include stilt housing standards in spatial planning and/or river management regulations High standards of monitoring and licencing of river craft City should evaluate proposals prepared with the local community
Risk Rating M
Procurement
River housing River transport pollution Tallo Heritage City
MU M M
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Table of Contents of Annexes

Annex A Annex B Annex C Annex D Annex E Annex F Detailed description of existing situation ................................................... 67 Detailed Project Description of components 1-3 ....................................... 71 Environmental Impact................................................................................ 77 Social Impact ............................................................................................. 83 People Met ................................................................................................ 89 Bibliography ............................................................................................... 93
Annex G Responses to WB comments .................................................................. 101 Annex H Annex I Annex J Study Team ............................................................................................. 113 Project Costing ........................................................................................ 115 Drawings and Maps ................................................................................. 116
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Annex A Detailed description of existing situation

1. Land uses Land use in the project impact area is divided into several zones, namely: (1) Kelurahan (2) Tallo south of the river (3) north of the river (4) Lakkang Island, (5) the Tallo River, and (6) the area around the UNHAS campus. Kelurahan Tallo is the site of the ancient kingdom of Tallo. The area south of the river is bounded by Jalan Perintis Kemerdekaan, Jalan Panakkukang and Jalan Tol Reformasi, and to the north by Pampang river and Lakkang Island. Land uses along Jalan Perintis Kemerdekaan and Jalan Reformasi are medium density, behind which are fish ponds bounded by cultivated nipah palm. The area to the north is the catchment of a number of small rivers flowing into Tallo River, between the toll road and the Unhas campus. The river bank is planted with nipah palm on the earth walls of fish ponds. Between the ponds and the urban development are some rice fields. To the west, on both sides of the toll road, are low density industry and warehousing mixed with residential. The land on Lakkang Island is mainly fishponds. The river bank is planted with mangrove and nipah palm, with some village housing concentrated between two small piers. Close to the housing are some rice fields and fruit trees. Tallo River is still used for transporting goods (timber) and people, especially those living on Lakkang which does not have a bridge to the city. The river gives the feeling of natural freshness as mangroves and nipah palm grow along its banks, though at some places, especially near the toll road bridge, there is fishermen housing. The river is still used for fishing, using lines, nets and fishing rigs. The Unhas campus area extends from Jalan Perintis Kemerdekaan to the river to the west and south, and a branch of the river to the north. The land north and south of the campus is used mainly for housing, with mangrove and fishponds by the rivers. The detailed land use can be seen on the map in section 2 of the main report. 2. Kelurahan Tallo
Kecamatan Tallo is one of 14 kecamatan in Kota Makassar with an area of 5.83 km2, located to the north of the city centre, and consists of 15 kelurahan, including Kelurahan Tallo. The population is 135,574 or 3.32 % jumlah of the population of Makassar. The
Water seller in Tallo Warehousing and fishermen housing in Tallo population is increasing at 2.08% per year. Kec Tallo is the location of historic sites,
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including the graveyard of the ancient kings of Tallo, and several other archaeological remains. The kings graveyard complex and surroundings. One of the remains is the graveyard of Tallo kings. Also there are remains of some fortifications, and there will be other remains including remains of palaces, ancient traditional houses. The area requires research into historic sites and ancient layout of the royal city. Housing areas within Kel Tallo are relatively dense, mostly single story timber dwellings, close together, many over the water, crossing the river-line. Much of this housing is slum, some repairable, and some requiring replacement. At several locations, housing has been cleared for warehousing and industries, many now not used, with mature green areas closed off with high fences. 3. Tallo River
Tallo River has a catchment area of 407 km2 starting at Mount Kallapolompo (elevation 725 m), and the main river is 72 km long. The lowland of the river extends from beyond the city limits, with a slope of less that 5%. The riverbank is in its natural state or made of earthen walls to fishponds, without flood-control works. The slope of the river in the city east of our site is 0.00035 (35 cm per km) and between the Jl Perintis Kemerdekaan bridge and the sea is 0,0001 (10cm per km). Because of this condition, the area around the river often floods (according to directorate general of water resources). In the mountains, the slope reaches 10-20%. The vegetation along the river, mainly nipah palm and mangrove, is mostly in healthy condition. This vegetation serves to protect the riverbank so that the meandering of the
Tallo River looking east to Jl Perintis Kemerdekaan bridge
Tallo River west from Jl Perintis Kemerdekaan
Riverside used for garbage recycling
Household waste flushed into Pampang River

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river does not vary from year to year. It also serves to protect wildlife including the fish population (directorate general for water resources) Upstream of our study area are several retention reservoirs, Balang Tonjong (0.6 km2), Bokoh Swamp (0.55 km2), Lake Mawang (1.3 km2), and Lake Mata (0.5 km2). Also in this upstream area is an additional 2.2 km2 of nipah palm swamp. These swamps and lakes help retain water at flood time, which mitigates flooding downstream.. The building of the Reformasi Toll Road in fact caused significant environmental impact as the number and size of cross-drains is inadequate for the volume of storm water, and are often blocked by rubbish (directorate general for water resources). River Tallo passes Kota Makassar, and collects waste water from the city, including plastic, paper, domestic sewage and factory waste, especially from the Panakkukang Canal that is used to flush the city drainage system. As a result the quality of water in the lower area of the river is getting worse. Based on laboratorium analysis by the environmental agency of the city, some parameters of quality are over acceptable limits. 4. Lakkang Island
a Lakkang Strategic Protection Area is defined between two rives, that is Tallo River and Pampang River. The island of Lakkang was created from a process of sedimentation and covers an area of 1.65 km2 with the an ecosystem that has the potential for remaining in its original condition, and continued use as an area cultivated for freshwater fishponds. As a natural heritage it can be used for both tourism and for Roadway on Lakkang Island protecting the environment. Administratively it is partly in Kecamatan Panakkukang and partly Kecamatan Tallo. The Lakkang Strategic Protection Area is directed to the sustainability of nature resources by maintaining and protecting the ecosystem. This area is can serve an environmental buffer zone for flooding, and it green area can absorb air pollution. Its natural resources can serve as a tourist attraction, and for nature research. The spatial plan calls is an agropolitan and maritime conservation area ( RTRW Kota Makassar 2030). Based on articles 46 and 49 of presidential regulation 55/2011 on the spatial plan for Mamminasata, the upstream of the Tallo River in the city is enacted as an L-1 protection area, that is, an upstream protection zone created to protect downstream areas from flooding. Nothing in the regulation explicitly states that Lakkang has L-1 status. Article 53 that from the river line to five meters from the foot of the barrage is a protected area of status L-2, to protect the river and create green space. In the city plan, Lakkang Island is a strategic protection area, directed to conservation of water and land and allocated as a zone for environmental benefit, preservation and conservation. 5. South Bank
The area to the south of the river is within the area of Kecamatan Panakkukang covering the Kelurahan of Panaikang, Pampang, and Rappokalling. The land use of this area is a mix of offices, housing and education, including the campus of Universitas Muslim Indonesia (UMI), the office of the governor, and the office of the regional military command. Pampang River flows through it. As this river is flanked by high density housing, it brings relatively high levels of pollution into the Tallo River. Housing in this area is partly medium density and partly high density. Close to the river are mangroves and fish ponds.
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In Kelurahan Rappokalling are two communities, RW 05 and RW 03, that are on the river line. They have received improvements with local road and a communal sewerage plant. There is also an activity known as garbage bank where scavengers collect and recycle garbage. Recycling is the dominant activity in both these communities. In RW 05 the people create bags and wallets from the waste products. This activity risks breaking the law on water resources, which bans garbage collection activities on riverbanks. 6. Unhas area
The area of Universitas Hasanuddin campus covers Kelurahan Tamalanrea, Kelurahan Tamalanrea Jaya and Kelurahan Tamalanrea Indah within Kecamatan Tamalanrea. The campus is quite large with most of the site planted with trees, making a pleasant, green and clean environment. Part of the area is used for forest research, and located near the river pier, quite far from the campus buildings. This area is covered by wild grass and appears unmaintained and unsafe. Outside the area with campus buildings, much of the land is underutilised. It could be used better for student research according to their various disciplines, particularly forestry, agriculture, or veterinary science. The university could also direct more of its programs to the needs of the city such as environmental management, garbage management, drainage management, and so on. This way the university could be seen to make a direct impact on the community, and implant the feeling of students concerning the city where they are studying. South of the campus are some fishponds beside the river, and housing, both real estate and informal, which continue to expand into the river flood-plane. 7. North bank
Kera-Kera Pier at Unhas
The area to the north of the project covers Kelurahan Bira, Kelurahan Parangloe and Kelurahan Kapassa in Kecamatan Tamalanrea. Land use in this large area is mainly fishponds, housing, industry and warehousing. It includes the Makassar Industrial Zone, Kawasan Industri Makassar, known as KIMA, and it is expected that the area around this zone will become more dense and more polluted, and the pollution will enter the Tall River, unless special action is taken to control it, so that it becomes more dense but not more blighted. 8. Other factors affecting the environment
There is a garbage tip (Tempat Pembuangan Akhir, TPA) in Tamangapa that potentially can bring pollution into the river and into wells in the area around it, especially in the rainy season (directorate general for water resources). There is a sewage treatment plant (Instalasi Pengolahan Limbah Tinja, designed for treating sullage pumped out of septic tanks) at Nipah-Nipah that has almost reached its capacity, and it is now well managed so that it potentially can pollute the river (directorate general for water resources).
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Annex B Detailed Project Description of components 1-3 Component 1 INVESTMENT TO MAKE TALLO RIVER SYSTEM FLOOD FREE
1.1 River works
1. Dredging work for Tallo River Dredging work at Tallo River serves two purposes, enlarging the cross-section of the river to increase flow capacity thus reducing flood levels , and as a source of material for landfill, provided the quality meets environmental standards. BBWS has indicated that it must re-evaluate its earlier estimates for dredging, considering its changed approach to flood mitigation by building retention lakes upstream. Its new calculations will come from the study it is conducting later this year. The construction of the levee has far greater capacity to reduce the impact of flooding, making dredging a lower priority than building the levee. Thus dredging has been delayed till later stages of development. 2. Disposal of Dredged Material
Dredged material is proposed to be disposed on the area behind the north riverside levee. Environmental assessment for this dredged material is necessary to secure its use from life endangering contaminants. In this worst case scenario, there is sufficient dredging material for a depth of 2 m over 1.5 km2 of the low-lying area behind the levee.
1.2 Levee
1.2.1 Basis of design
The height of levees has been calculated using water surface profile for fifty year return period discharge, Q50, calculated by PT. Virama Karya for the detail design for flood control for Makassar City and its surroundings in 2004, with 0.60 m freeboard above the water surface. This profile is presented in drawing 14 in Annex I. No account has yet been made for the anticipated sea level rise, which, according to CSIRO climate change study for Makassar, is projected to cause an increase of sea level of 0.56 m and 1.10 m from the present level for the horizon 2050 and 2100 respectively. Anticipated long-term reduction in extreme flooding, and effective retention of flood water upstream will accommodate some of this increase, and the levee may be increased by landscaping in the riverside park at a future time. The land for the levee will be stabilized by using a geo-textile sheet before filling and mechanical compaction in layers of 20 cm 30 cm, depending on the methods and tools used by the contractor top. The fill material will be brought from quarries about 30 km away. A sheet pile retaining wall below the levee on the river side is built to a minimum depth of 10 meters with a concrete cap and steel anchors to assure rigidity. Precast concrete panels are placed on the side of the levee above the concrete cap, and above this the side is grassed. A 2m wide cycle path is built on top. At certain locations, including in front of Rappokalling fishermen housing and the timber factory north of the river, the levee is built from sheet piling backfilled with material available from the river, and covered with a concrete slab.
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1.3 Canals
1. Collecting Canal of Tamalanrea Indah The collecting canal of Tamalanrea Indah has cross section dimensions of 3.00 m width at the bottom and 2.00 m height with 2 to 1 slope of side walls. The purpose the canal is to collect and convey the drainage water from both the Unhas river catchment and the Tamalanrea Indah catchment to dispose into the river at each location, with retention capacity during flooding of Tallo River. 2. Collecting Canal of Tello Baru
Collecting canal of Tello Baru has cross section dimensions of 3.00 m width at the bottom and 2.00 m height with 2 to 1 slope of side walls. The purpose the canal is to collect and convey the drainage water from Tello Baru area to the Pampang Besar River.
1.4 Flood gates, stabilisation ponds and pump houses

1. Flood-gate of Parangloe River Flood-gate of Parangloe River is located around the Parangloe river crossing with the north riverside levee. The design discharge for the flood-gate is fifty year return period 3 discharge, Q50, of Parangloe River which is 85.1 m /s. The flood-gate is designed in combination with a water quality stabilization pond of 2.5 ha area which is equipped with regulating gate and pump house. The purpose of the flood-gate is to prevent the area behind the levee from flood in the Tallo River. 2. Flood-gate of Kapassa River
Flood-gate of Kapassa River is located around the Kapassa River crossing with the north riverside levee. The design discharge for the flood-gate is fifty year return period 3 discharge, Q50, of Kapassa River which is 28.1 m /s. The flood-gate is designed in combination with a water quality stabilization pond of 2.5 ha area which is equipped with regulating gate and pump house. The purpose of the flood-gate is to prevent the area behind the levee from flood in the Tallo River. 3. Flood-gate of Biringromang River
Flood-gate of Biringromang River is located around the Biringromang River crossing with north riverside levee. The design discharge for the flood-gate is fifty year return period 3 discharge, Q50, of Biringromang River which is 125.1 m /s. The flood-gate is designed in combination with a water quality stabilization pond of 2.5 ha area which is equipped with regulating gate and pump house. The purpose of the flood-gate is to prevent the area behind the levee from flood in the Tallo River. 4. Flood-gate of Pampang Besar River
Flood-gate of Pampang Besar River is located around the Pampang Besar River crossing with the south riverside levee. The design discharge for the flood-gate is fifty 3 year return period discharge, Q50, of Pampang Besar River which is 286.8 m /s. The flood-gate is designed in combination with a water quality stabilization pond of 2.5 ha area which is equipped with regulating gate and pump house. The purpose of the floodgate is to prevent the area behind the levee from flood in the Tallo River. 5. Flood-gate of UNHAS Lake
Flood-gate of UNHAS lake is a small gate with a small pump house located at the outlet of UNHAS lake to the Tallo River behind the riverside levee. 6. Flood-gate of Tamalanrea Indah
Flood-gate of Tamalanrea Indah is a small gate with a small pump house located at the outlet of Tamalanrea Indah drainage system to the Tallo River behind the riverside levee.
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Component 2 INVESTMENT TO CREATE ACCESS WITH HIGHER DENSITY

2.1 World Bank
2.1.1 Tallo River Riverside Road
The plan for the first stage of the riverside road improves city access (because only main road, Jl Perintis Kemerdekaan, is overloaded by city traffic that has been growing at 8%10% per year) and creates access to a large area suitable for mixed use development. This road is 6.045 km starting from the west boundary of the Governor's Office on Jl Urip Sumoharjo, passing over Tallo River at Tello Baru, past the front of the Unhas campus, linking to the Mamminasata Outer Ring Road to be built by the province in 2014. The road is 38 m wide and consists of six lanes, two for separated busway, footpaths with sufficient space for planting and street-hawkers. Tall trees shade the road and footpaths, low planting prevents pedestrian access to the road except at pedestrian crossings, bus-stops and taxi stands, and low planting in the media reduces headlight glare at night. The road is built on the top of the river levee, as shown in the drawings in the accompanying annex. It is anticipated that this road will not require widening in the future. The land for the road is subject to land stabilization by using a geo-textile sheet before filling and mechanical compaction in layers of 20 cm 30 cm, depending on the methods and tools used by the contractor to achieve density for the road on top. A sheet pile retaining wall below the levee on the river side is built to a minimum depth of 10 meters with a concrete cap and steel anchors to assure rigidity. Precast concrete panels are placed on the side of the levee above the concrete cap, and above this the side is grassed. The roadway is reinforced concrete to the new standard set by the city public works agency for main roads, in orde to save maintenance costs. The road will be developed in three segments, Kera-Kera section from the outer ring road to the Tello Baru bridge, the Tello Baru section from the bridge to the future intersection for stage three of the riverside road, and the Pampang section linking to Jl Urip Sumoharjo beside the Governors Office. The width of the road is justified on the basis of the traffic that is likely to be generated within a few years:
The first stage is part of an alternative route from the north to the city, and much of the traffic now on Jl Perintis Kemerdekaan will be diverted to it; also, along the 5 km length of the road there will end up being an estimated 1 million m2 of residential and commercial development The second stage will represent an extension of the middle ring road south of Unhas campus; also, along its almost 5 km length there will end up being another estimates 1 million m2 of mixed residential and commercial development. The third stage will be the main non-toll road from the business area to the new port.
The road is not wide by Makassar standards, but is designed to better channel traffic. The proposed outer ring road has an easement width of 100m. Several main arteries have around 60m width, but they do not effectively channel traffic, and both sides are used for uncontrolled parking.
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2.1.2 Tello Baru Bridge

The Tello Baru Bridge will become a symbol of the Tallo River Park, with artistic and aesthetic value capable of inspiring the community to respect the contribution the park makes to the city. Our illustration of this bridge is shown in the accompanying drawings. It is made of three spans, with shallow arches. A floating ferry pier for passenger ferries and motor-bike ferries is built under one of the narrower side arches. A park is to be built at Tello Baru next to the ferry, linking to green space under high tension power-lines. The bridge is 26m wide with 6 lanes without separation of the bus-lanes, and low planting along the median.
2.1.3 River Transport Piers

River transport is currently provided by small private operators, in the form of small passenger ferries that also accommodate motor cycles. It is proposed that the city government licences private sector passenger ferries, and that the proposed project include a number of floating piers. These piers will be designed for commuters, with a floating platform in order to assure fast and consistent docking and loading/unloading. Piers are located at transport nodes, where high density development will be planned to increase the demand for the ferry service. The private sector will be invited to link the piers to bus-ways, monorail (at Tello Bridge) and commercial properties. The piers will also cater for tourist traffic to Lakkang Island, Pampang Kecil River and the proposed education facility in Tello Baru. The passenger ferries are likely to have a capacity on about 50 passengers, about 18 m long and 5 m wide. At the first stage it is proposed to build five piers:

On the north side under the Tello Bridge on Jl Perintis Kemerdekaan On the south bank under the new Tello Baru Bridge At Kera-Kera (Unhas) On Lakkang On the south bank under the toll-road bridge where there already is bicycle path.
The ferry service would link to Losari in the first place, and later to the reclamation areas for the proposed new port and residential development.
2.2 Provincial government

The contribution of the provincial government will be the outer ring road that crosses the north of the development area and will link to the toll road and the future development area to the west. The easement for this road will be 100 m and will be designed to cater for trucks serving the industrial and warehousing facilities. The provincial government also proposes a busway financed from the central government. The pre-feasibility team reviewed the so-called detailed engineering design, which includes a bus-stop close to the Tello Bridge which should be included in an integrated plan together with the proposed monorail. The design is largely a copy of the Jakarta busway, as in many other cities in Indonesia. On many aspects the proposal is weak, but especially the approach to design is faulty, as there has been no consultation process, either on a strategic level to determine feasibility, nor on a detail level to assure design of buses, bus-stops and pedestrian facilities around bus-stops attract maximum utilisation of the service. One aspect is the continued use of buses with high floors (1.05 m from the ground), where in most modern bus systems, low-floor busses are used and found to be far more attractive to users. If the busway design is suitable, the city would find it attractive to have an alternative bus route along the riverside road where an exclusive bus lane is proposed.
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2.3 City Government

It is proposed that the city builds a number of link roads to the stage 1 riverside road, after that road is completed:
Building half the proposed riverside road stage 3 from Panaikang to Rappokalling, along the southern boundary of the site of the proposed JICAplanned IPAL at Pampang. This will provide an alternative link to residential areas north of Jl Urip Sumoharjo Upgrading the roads beside Pampang River The middle ring road, following the Unhas river
2.4 Private Sector

The toll-road operators will build a new bridge to remove the bottle neck at the river. Also, they should be invited to work with the provincial government to provide ramps at the Outer Ring Road crossing.
2.5 Future
Stages 2 and 3 of the riverside road would commence as demand for land increases. Stage 2 links stage 1 to the toll road and across the toll road to the industrial development area to the west. Stage 3 will start at the intersection with stage 1 at Panaikang and extend to a 200 m bridge crossing the river and linking to stage 3 at Bira. We propose that this would be a signature bridge designed by open competition. A link road in stage 3 will cross the toll road to Tallo Heritage City and to the future port. It is proposed that the development of the land to the north of the riverside road be auctioned in blocks to real estate developers, complying to standards to be set by the city. Development would include the building of linking roads and associated infrastructure. The private sector is currently preparing proposals for a monorail along Jl Perintis Kemerdekaan and Jl Urip Sumoharjo. A second line, further in the future will follow the line of the Merdeka Toll Road linking to the proposed new port. We have suggested a diversion of this link to the proposed Tallo Heritage City development.
Component 3 INVESTMENT TO CREATE TALLO HERITAGE CITY AND CITY PARK

3.1 World Bank
3.1.1 Parks
It is proposed that the World Bank loan be used to make an impressive start to the creation of the Tallo River P ark, with the following works:

Mangrove planting on the north bank of the river either side of the toll-road and on the western tip of Lakkang Island A formal park in front of the Unhas campus next to the Kera-Kera pier with its high density mixed-used development. This park would be suitable for a wide range of public events, and be a focus for links between the student community and the public A small park adjacent to the ferry pier at Tello Baru, as can be seen on the illustration in the separate annex of maps and drawings An informal park suitable for families at weekends and workers at lunch breaks at Panaikang, with a small hawker centre providing meals and refreshments
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3.1.2 Landscaping
Landscaping is an important contribution to the concept of the new development. Large shady trees are planted along roads, and below the levee along its full length to provide shade to cyclists and pedestrians. Also dense screening trees are placed around the stabilisation ponds. Footpaths will be provided with waste bins and signage instructing the community not to litter. Bollards and planting will prevent motor cycles from entering pedestrian ways and stop pedestrians from crossing the road at unmarked locations.
3.2
Future
The remainder of the river park will be developed with the construction of later stages of the riverside road. Tourism development components should be determined as progress on the parkway progresses. It is expected that the private sector will contribute largely to this effort.
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Annex C Environmental Impact

1. Methodology and work done The study began with identifying a plan of activities to be carried out, followed by a study of secondary data on the environment in and around the Tallo River Area Development. Field visits were conducted throughout the area, and local people and key informants were interviewed including the Research Environment Office, LH-LPPM-UNHAS. Then the interaction of the proposed development with the environment was investigated using secondary data, the results of field observations, interviews and FGD with the community and with NGOs, resulting in a draft study of environmental issues. The draft study was then discussed with the provincial and city BLHD, Unhas, WALHI, the marine fisheries service, and the provincial forestry agency. 2.
Climate Change Considerations
Climate change features of the study area show that, in Makassar: In the past, there is an increase trend of temperature since 1981 with a rate of 0.27C per decade, and a decrease trend of rainfall since 1950 of 36% relative to the long-term mean for the dry season rainfall. For the horizon 2100, there will be an increase of projected temperature at a rate of 0.29C to 0.39C and 0.18C to 0.23C per decade, according to the results of two different studies, and an uncertainty of projected rainfall whether it will slightly decrease or increase. Climate change impacts are projected as follows:
Contrary with the projection for most of Indonesia, there will be a decrease in stream flow for Makassar by the year 2100, characterized by the decrease of 34-39% of the Tallo river mean stream flow at the river mouth, up to 20% increase in number of days with low flows, and the decrease of extremely high flow discharge. Decrease of catchment soil erosion of 39% for Maros River, 35% for Tallo River, and 32% for Jeneberang River. Shortage in water supply for urban use, during dry season and without the impact of climate change, will be overcome after five years since the master plan implementation in 2020, but it will continue if the water supply for irrigation use is included, under the condition without or with the climate change impacts. Climate change impacts on the tropical cyclones are not known, and the influence tropical cyclone events in Indonesia archipelago is hardly reach Makassar city marine. Sea level will rise by 56 cm in 2050 that cause inundated city area of 908 ha and by110 cm in 2100 that cause inundated city area of 2010 ha.
Climate change impacts mitigations are suggested as follows:
For tropical cyclones mitigations, structural measures are not necessary rather than non-structural measures such as tropical cyclones warning system and evacuation system for disaster management. For sea level rise and storm surge mitigations, structural measures such as sea and river levees to prevent from flooding and retarding basin to reduce the peak flood discharge of river flow, and non-structural measures such as catchment environmental rehabilitations are necessary. For increased precipitation and fluvial flooding mitigations, structural and nonstructural mitigation measures as suggested for sea level rise and storm surge mitigations are necessary.
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For water stress and drought mitigations, structural mitigation measures such as retention basin to store the excess water supply during wet season are necessary for replenishing the shortage of supply during dry season.
3.
Water quality date
Two studies of water quality were found and are reproduced on the following pages. 4. a) Draft Terms of Reference for EIA Introduction
Background, goals, benefits of project, description of project, and extent of the project boundaries, as in final report text. The ecological boundary is based on the likely area of physical environmental impact, and will include those areas that drain through the project area and the boundaries of the ecosystem. A social boundary is defined by administrative area boundaries (kecamatan and regions and kelurahan) and physical boundaries like the toll-road and Jl Perintis Kemerdekaan. b) Scope
A full AMDAL is required for the proposed World Bank project and development along the first stage of the riverside road, taking into consideration the full extent of the area development over a period of 15-20 years. Impact time periods:

Prior to development: trends of change in the development area Land procurement period Construction period Initial use period Expansion to phases 2 and 3.
There will be several forms of relocation of families:

A small number of homes must be procured, and families resettled, to make way for proposed development Some land for housing will become prime real-estate, where families are likely to be offered fair compensation to find other places to live A larger area of fish-ponds and padi will eventually also be converted to urban use, and assistance with resettlement and/or alternative employment will need to be considered Existing housing areas will be subject to densification, and new communities created in new housing areas
c)
Potential risks

Construction activities with a risk of having a major and important impact include: Dredging of river and disposing of dredged materials Land acquisition and resettlement Construction of roads, levees, flood gates and pump houses, stabilisation ponds, bridges and piers. Construction of riverside park areas
Development that is induced by the WB project with a risk of major and important impact development having potential negative impact include:
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Urban development in the area made flood-free
Results of Analysis of the Quality of River Water near the Location of Proposed Integrated Housing Estate in Parangloe Indah Makassar 2007
No A 1 2 3 B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Test Parameter Fisika Temperatur Zat Padat Terlarut Zat padat tersuspensi (TSS) Kimia pH BOD COD DO Total Pospat sbg P NO3 sebagai N NH2 N Arsen (As) Kobal Barium Boron Selenium (Se) Kadmium Khrom (VI) Tembaga Besi (Fe) Timbal Mangan Air Raksa Seng Khlorida Sianida Flourida Nitrit sbg N Sulfat Khlorin bebas Blerang sbg H2S Minyak dan lemak MICROBIOLOGI Total Coliform
Unit
BM
KA1
KA2
KA3
KA4
KA5
KA8
KA9
KA109
KA11
0C mg/l mg/l
Deviasi 3 1000 400
30 230 140
30 248 69,6
30 412 357,2
30 289 286,4
30 316 13,6
30 262 84
30 79,6 2,4
30 748 158,4
30 1488 146,8
mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l
6,0 8 6 50 2,733 1 20 (-) 1 0,2 (-) 1 0,05 0,01 0,05 0,02 (-) 0,03 (-) 0,002 1 (-) 0,02 1,5 0,06 (-) 0,03 0,002 10000
8,5 2,19 6,18 5,652 0,060 0,250 1,312 ttd ttd ttd ttd ttd ttd ttd 0,017 0,257 0,026 ttd ttd 0,043 57,13 0,002 ttd ttd 38,08 ttd ttd 92
9 1,565 2,27 2,739 0,028 3,670 0,369 ttd ttd ttd ttd ttd ttd ttd 0,017 0,261 0,026 ttd ttd 0,043 23,66 0,001 ttd ttd 15,71 ttd ttd 19,6
8,5 1,014 2,60 6,176 Ttd 2,140 27,663 ttd ttd ttd ttd ttd ttd ttd 0,038 0,571 0,057 ttd ttd 0,095 28,74 ttd ttd ttd 22,99 ttd ttd 193,2
8 1,583 2,29 7,235 0,008 0,160 3,050 ttd ttd ttd ttd ttd ttd ttd 0,004 0,061 0,006 ttd ttd 0,012 22,85 ttd ttd ttd 19,04 ttd ttd 98,4
8,5 1,809 2,62 5,878 0,029 0,580 17,591 ttd ttd ttd ttd ttd ttd ttd 0,005 0,076 0,008 ttd ttd 0,015 29,99 ttd ttd ttd 24,99 ttd ttd 125,6
8,5 2,374 3,44 2,60 0,210 4,200 17,449 ttd ttd ttd ttd ttd ttd ttd 0,004 0,065 0,006 ttd ttd 0,013 27,13 ttd ttd ttd 22,61 ttd ttd 236
8,5 0,904 1.31 7,130 0,336 6,720 15,605 ttd ttd ttd ttd ttd ttd ttd 0,004 0,046 0,005 ttd ttd 0,009 27,85 ttd ttd ttd 23,21 ttd ttd 59,2
2,4 1,130 1,64 6,957 0,311 6,220 13,406 ttd ttd ttd ttd ttd ttd ttd 0,016 0,236 0,024 ttd ttd 0,047 34,28 ttd ttd ttd 28,58 ttd ttd 147,56
8 1,357 1,97 7,130 0,166 2,120 15,179 ttd ttd ttd ttd ttd ttd ttd 0,014 0,217 0,022 ttd ttd 0,043 40,70 ttd ttd ttd 33,92 ttd ttd 181,6
29
Jlh/100 1000 28 34 24 26 32 24 28 26 ml Sumber: Laporan Akhir Analisis Dampak Lingkungan Kawasan Perumahan Terpadu Parangloe Indah Makassar, 2007 Keterangan: BM = Baku Mutu yg maksimum diperbolehkan KA5 =Sungai sesudah Lokasi (Bontoa) KA1= Sungai Daerah pemukiman KA8 =Sungai sebelum lokasi (Biringromang) KA2= Sungai di belakang KTC KA9 = Sungai sebelum lokasi(Kapassa) KA3= Sungai sesudah lokasi( Kapassa) KA10=Sungai sebelum lokasi (Bontoa) KA4= Sungai sesudah lokasi (Biringromang) KA11=Tambak di areal lokasi
17
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Results of monitoring the quality of water in Tallo River October 2012

No A FISIKA Parameter Uji Satuan Baku Mutu Air Klas I Klas II Hasil Pengukuran S Tallo 1 S Tallo 2 Keterangan
1 2 3 B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 C 27
Temperatur Zat Padat Terlarut (TDS) Zat Padat Tersuspensi(TSS) KIMIA pH Besi (Fe) Mangan (Mn) Barium(Ba) Tembaga (Cu) Seng (Zn) Krom hexavalen (Cr6+) Cadmium (Cd) Air Raksa (Hg) Timbal (Pb) Arsen (As) Selenium (Se) Sulfat Sianida (CN) Hidrogen Sulfide (H2S) Florida (F) Klorin bebas (Cl2) Amonia Bebas (NH3-N) Nitrat (NO3-N) Nitrat Sebagai N BOD5 COD DO Chloride Total Fosfat Minyak dan Lemak Microbiologi Total Coliform
oC mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L Ug/L
Deviasi 3 1000 50 69 0,3 0,1 1 0,02 0,05 0,05 0,01 0,001 0,03 0,05 0,01 400 0,02 0,002 0,5 0,03 0,5 10 0,06 2 10 6 600 0,2 1000
Deviasi 3 1000 50 6 8,5 (-) (-) (-) 0,02 0,05 0,05 0,01 0,002 0,03 I 0,05 (-) 0,02 0,002 1,5 0,03 (-) 10 0,06 <5 <25 >4 (-) 0,2 800 5000
26 96,0 12,0 7,2 0,16 <0,0001 <0,0001 0,0109 <0,0001 0,0061 <0,0001 <0,0001 0,0198 <0,0001 <0,0001 367,42 0 0 0 0 1,22 0,049 0 7,20 11,08 6,80 40,04 0,078 0 35
26 1172,0 11,2 7,4 0,21 <0,0001 <0,0001 0,0145 <0,0001 0,0120 <0,0001 <0,0001 0,0180 <0,0001 <0,0001 310,67 0 0 0 0,0000 1,16 0,53 0 4,80 7,38 6,64 3,50 0,065 0 71
Diatas BML
Diatas BML
Di atas BML
MPN/ 1000 100ml Sumber: Lembaga Pendidikan dan Pengelolaan Lingkungan,2012
Lack of urban development in the area made flood-free Development of a more compact city River transport
There are risks of major and important impacts if the development does not achieve its intended environmental benefits

Failure of flood mitigation efforts Failure to create a clean river environment, suitable for tourist and recreation use and continued fishing activities, with increasing animal population (particularly birds) Lakkang island failing to be conserved in rural use and traditional village life
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Historic relics not preserved and respected, in Kelurahan Tallo, along the river and on Lakkang Island Wellbeing of residents living on the river and in kelurahan not improved, the Heritage City and river not made more attractive The city not becoming more dense, and thus not providing improvements in urban efficiency
d)
Environmental Components to be studied

Physics and Chemical Components to be studied include: Climate (climate type, rainfall, climate change, the direction and the speed of wind) Flood intensity, routine flood height and maximum flood. Air quality (dusts, SO2, NOx, CO, Pb, HC) Noise rate Geology (physiographic, topography/land shape, types and nature of land and rocks, geological structure and slope/hillside stability) Chemical material composition of the river dredged materials, the suitability for use for levees and other landfill. Water quality (physic, chemical, and biology)
The Biological Component to be studied includes:

The type of existing flora, its benefits, the density, the existence of protected species, etc. The type of fauna, fauna habitat size, as well as the existence of protected fauna. Aquatic biota such as plankton diversity, macro benthos, and nekton types. Demography (age population structure, education, livelihood, growth, mobility, density) Social-Economics (earning source and amounts, primary and secondary livelihoods, land ownership and tenure, neighbourhood economy) Society and Culture (community leadership, community cooperation/Gotong Royong, cultural characteristics and social conditions, local social institutions, means of maintaining security, social order and crises, conflict management, community knowledge of its culture and facilities, attitude and perception of the community towards the project, community aspirations
Social and Cultural components to be studies include:

Urban development (Quality of road space and housing areas, appropriate mix of land use and urban activities, traffic network, volume, traffic safety, public transport, pedestrian facilities) Community Health Components to be studied include:

Types of disease in the society and the number of the sufferers Community medical service facility Medic and paramedic forces Clean water usage and the scope of clean water service
e)
Domestic litter disposal and its management The Data Collection and Analysis
The collection of the data consists of primary and secondary data collection. Primary data can be achieved by direct observation when field-surveying the objects. This
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primary data includes direct measure or the conduction of samples-taking and interviews. Secondary data is achieved from prior research, periodical reports, literature study, agency information, and already available data. Primary data is to be collected according to best professional practice, whether by field observation and research, sampling, laboratory analysis, social surveys and interviews or focal group discussions. Primary data collection is expected for analysing the ecosystem of the whole area, and in particular areas to be affected directly by the works, verifying land usage and ownership, examining material to be dredged. Particular attention should be given to establish base-line data for ongoing environmental impact assessments, including extent of vegetation, animal habitats, flood levels, river and road traffic. Secondary data collection consists of reports and research findings from related governmental or private agencies, academic institution, civil society organisations, media reports and other available data related to the condition of the area being studied. Data may be found in the affected kelurahan and kecamatan, Makassar City, South Sulawesi Province, or in national records (central government and national universities). The secondary data collection is divided into two parts, data related to the proposed activity and data concerning the environment f) Impact Estimation and Data Collection
Impact estimation predicts changes in environmental quality as the result of the proposed activity, according to the magnitude of the impact and the significance of the impact. The magnitude is determined by comparison with an established base line. For important environmental aspects, formal calculated estimation of impact is most desirable, in order to establish definitive measures of impact for monitoring and evaluation. Informal methods may be used to estimate impacts on biology (flora, fauna, and aquatic biota), water quality, aesthetics and use of cultural symbols, social problems, public health, and tourism. Some informal methods used in this study including analogy, environmental quality standards, and professional judgment. Analogy refers to where problems are analysed by comparison with similar activities in other locations with similar characteristics, and is suitable for issues such as social problems and public health. Environmental quality standards (Nilai Baku Mutu Lingkungan, BML) are established by law, local and national standards, or appropriate international standards, for example the regulation of the South Sulawesi Governor for water usage and standards of Tallo River, and government regulation 41/ 1999 on Air Quality. Professional and expert judgement may be used where data is limited or formal methods unavailable. The significance of the impact, in accordance with Bapedal Decree KEP-059/1994 on Important-Impact Standard Guide, is ranked as either unimportant (TP) or important (P), based on consideration of:

The number of people affected The area of impact The duration of impact Intensity of the impact The number of other affected-components Cumulative effects of the impact Level of recurrence of the impact
The primary concern of environmental impact is to predict large and significant impacts to determine appropriate measure to avoid, confine or mitigate them. A holistic evaluation of the environment and the project components requires a study of each aspect and its reciprocal relationship with other aspects, based on causes and effects, to predict the eventual equilibrium of the system. Alternative actions are proposed that will result in the optimal action required to achieve the desired environmental outcome.
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Annex D Social Impact

1. Introduction The social impact initial review of project components was carried out during this prefeasibility study to analyse direct and indirect social risks and impacts likely to be caused by the project activities. The overall social impact of the Project is expected to be positive, as it will improve job creation and social pride for a significant number of beneficiaries. Localized negative social impacts will be experienced during feasibility due to: (a) land acquisition and resettlement associated with ring road, levee, IPAL, green park and High Density Mixed-Use development; and (b) possible exposure to HIV/AIDS due to the significant number of migrant workers on the sites; (c) dislocation for vulnerable people may be affected by the project; (d) no any Indigenous people (IP); and (e) no any ethnic minority. 2. Methodology and work done
The initial review (study) to this project consisted of (i) literature study of relevant documents; (ii) collecting secondary data from linkage agencies and relevant institutions; (iii) focus group discussion (FGD) with potential affected peoples; (iv) field survey and observation and (v) consultation and sharing with relevant experts. We have conducted a series of activities as shown in the following table/ 3. Positive and Negative Impact
Positive Impact The overall social impact of the Project is expected to be positive, as it will improve the job creation and social pride for a significant number of beneficiaries, as follows:
Job creation especially to women. A relatively high proportion of women are in the workforce, as factory workers, in trade, in teaching, and others. We estimate that over 200,000 jobs will be created when the Tallo River Area Development is completed, and a majority of these jobs is likely to be filled by women. Helping poor people to find new or increasing income. There are about 239,000 (17.69%) poor peoples in Makassar City based on BPS, 2011. Generally, poor people mostly caused by jobless, and jobless cause no income. Development of industry, warehousing, recreation and other project components will provide job creation for the poor people. Poor people will be easier to access work place if they are provided housing close by the industry, commercial centre and warehousing. Density of development, public transport orientation Creating live harmony between high-income people and low-income. Increasing density through apartment development completed by guided settlement for low income peoples, commercial centre, provide good public transportation and pedestrian will create live harmony between high-income people and low-income. By this approach will be established positive mutual dependency between these two classes of peoples to achieve welfare to gather, less from social problems. Social pride development for river-based and Lakkang-based Communities. Potential of social-eco-cultural in river-based and Lakkang-based communities can be used to realize the conservation of the natural environment and tourism. Social cohesion among them and their culture as social and culture capital. These social and cultural capital as an attraction for tourists to come visit this area, in addition to enjoying its natural beauty. Technical Assistance will be designed to promote awareness that they have own value in managing Lakkang and riverbase community as limited conservation area. Technical Assistance also will facilitate strong community institutions establishment either at the village or community level, by grouping communities based on their business interest for supporting eco-tourism area, through the promote awareness, motivation, facilitation and assistance to achieve self-reliance in managing Lakkang Island
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and river-based community as limited conservation and tourist areas. All these activities will development sosial pride river-based and Lakkang-based communities. Table of Activities have been done in social study
No
1
Activities
Literature study to relevant documents;
Time
April, May, June, July
Remark
History and culture of Tallo LARAP documents PNPM training manuals Legislation on land acquisition Statistical data Social Welfare agency data Family planning data Kelurahan and kecamatan office in the study area Location : community meeting room at Kings Graveyard Tallo Kelurahan Tallo. Attendance: 34 people Topic: community aspirations for the development of Tallo Heritage City Location: community meeting room Kings Graveyard Kelurahan Tallo Attendance: 24 people Topic: Response to consultants concept for developing the Tallo Heritage City Location: community meeting room kelurahan Lakkang office Attendance: 42 people Topic : community aspirations for the development of Lakkang Island as part of the Tallo River Area Development Location: community meeting room Lurah Lakkang office Attendance: 34 people Topic : response to consultants concept for development of Lakkang Number of houses and area of land that may be subject to the building of the riverside road, levee, Water Quality Stabilization Ponds, High Density Mixed Use along the road in all three stages. Sharing and consultation with Environment Expert, Hydrologist, Structure Engineer, Economist, Team Leader, and Architect staff, Social expert assistance, WB Social Safeguard Team.
Collecting secondary data from linkage agencies and relevant institutions Focus group discussion (FGD) with potential affected peoples
FGD I Tallo; 07 June 2013
FGD 2 Tallo; 02 July 2013
FGD 1 Lakkang Island; 30 May 2013
FGD 2 Lakkang Island; 04 July 2013
Field survey and observation
1 10 July 2013
Consultation and sharing with relevant experts.
Negative Impact Potential negative social impacts determined in the initial assessment with as follows: (a) land acquisition and resettlement associated with riverside road, levee, Water Quality Stabilization Ponds, green park and High Density Mixed Use development; and (b) possible exposure to HIV/AIDS due to the significant number of migrant workers on the sites; (c) dislocation for vulnerable people may be affected by the project; and (d) no any Indigenous people (IP); and (e) no any ethnic minority.
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a)
Affected Land and Houses
Land and structures (houses) that affected by the riverside road, levee, water quality stabilization pond, green park and high density mixed use development are around 159.4 Ha and 85 units.
No 1
Type of Structure which need Land
Potential Area to be acquired (Ha)
Potential Affected Houses (Unit) 49 36 85
Ring Road, park and mixed use 100 area 2 Levee 20 3 Quality Stabilization Ponds 36 4 Canals 3.4 TOTAL 159.4 Source: Initial Inventory of Losses (IOL) Survey (revision), 2013
Location of households needing relocation
b)
Possible exposure to HIV/AIDS
The possibility of exposure to HIV/AIDS is due to the significant number of migrant workers on the sites during physical construction. It is estimate about 30 thousands workers during physical construction over period of ten years (for urban development area, not only during the project period). Based on existing data from Health Agency of Makassar City (2012), there is an increasing trend of HIV / AIDS case from 2005 to 2012 shown in following graphic.
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Adoption of high standards of protection during the World Bank project will be important. c) Vulnerable people
People live within complex social systems that consist of sub systems such as home, livelihood, social net-works, community institutions, cultures, and so on. One sub system is disturbed will cause some social dislocation, disturbing peoples lives with the risk of creating social problems The main social dislocation will be the people working fishponds and rice fields. As indicate above there will acquired 329 Ha lands and 85 houses affected by the project. By developing high density mixed use area, it also will attract investors to the Tallo River Area Development. Land zoned for their future investments will be bought from their owners, and the current uses of the land will lose their livelihood and disturb peoples live. People live within complex social systems that consist of sub systems such as home, livelihood, social net-works, community institutions, cultures, and so on. One sub system is disturbed will cause some social dislocation, and by disturbing peoples lives with the risk of creating social problems, especially for vulnerable peoples. This pre-feasibility stage did not study vulnerable yet in detail in project location, however based secondary data from BPS and Social Agency of Makassar City, we have vulnerable in picture as follows.
No 1 2 3 4 Type of Vulnerable Poor people*) Elderly**) Disabled**) Women lacking social and economic support**) 245.906 Number 239.000 3.988 1.431 1.487
TOTAL Source: *) BPS 2011; **) Social Agency (2013)
The Feasibility Study team will have to study these vulnerable peoples and severelyaffected people in detail through inventory of losses survey and social economic survey. The project should to pay attention to these people through a livelihood restoration program, helping them find alternative livelihood suitable with their new condition. d) Indigenous people (IP)
There are no IP.
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e)
Ethnic minority
There is no ethnic minority. 4. a) Draft TOR RF and LARAP Introduction
The Government of Indonesia (GOI), with funding assistance from the World Bank (WB), will conduct a feasibility study for the Tallo River Area Development Project over a 4 year period. Among the activities are:
the Riverside Road and Park and High Density Mixed Use Development to open access to and around this land, in such a way that will promote high density of both housing and work-place, particularly attracting a large population living close to the park making use of public transport by both road and river. This effectively creates a second commercial district for the city facing the park, and the primary industrial and warehousing zone in the city Levee and Water Quality Stabilization Pond Development in flooding area of Tallo River to provide land made free of flooding that can be used for the development of industry, warehousing, education and housing in accordance with the city plan that can create home and work for over 300,000 people (and up to 700,000 people depending on the density of development agreed).
These physical components will involve significant land acquisition around 159 Ha which consist of ponds, rice field, back yard and resettlement of people who live and work in that area around 85 households (HH). To address these issues and to ensure compliance with Indonesian Regulations and the World Banks Involuntary Resettlement policy OP 4.12, the project will use a Land Acquisition and Resettlement Policy Framework (LARPF). The Framework makes provision for compensation at market prices; and payments in full to Project Affected Persons (PAPs) before their land and other assets are taken into possession by the Project. The Framework also provides for public consultation with the PAPs, and includes a grievance mechanism, monitoring implementation of land acquisition, compensation and resettlement, as well as post-resettlement status of PAPs. The WB has guidelines on involuntary resettlement that are aimed at helping ensure that persons affected by its projects are not negatively affected. WB-assisted projects should also provide an opportunity for the marginal sectors of the population, especially the affected persons (APs), to at least maintain their living standards. A Land Acquisition and Resettlement Action Plan (LARAP) have to be prepared to provide the basis land acquisition and resettlement implementation. b) Objective
The objective of these services is to prepare draft a Land Acquisition and Resettlement Policy Framework (LARPF) and Land Acquisition and Resettlement Action Plan (LARAP) once the location of land acquisition has been confirmed. c) Scope of Work
The scope and level of detail of LARAP vary with the magnitude and complexity of land acquisition and resettlement. The plan is based on up-to-date and reliable information about (a) the proposed resettlement and its impacts on the displaced persons and other adversely affected groups, and (b) the legal issues involved in resettlement. The resettlement plan covers the elements below, as relevant. When any element is not relevant to project circumstances, it should be noted in the LARAP. The elements includes: (1) Description of the project; (2) Potential impacts, include: (a) the project component or activities that give rise land acquisition and resettlement, (b) the zone of impact of such component or activities; (c) the alternatives considered to avoid or minimize resettlement; and (d) the mechanisms established to minimize resettlement, to the extent possible, during project implementation; (3) Objectives; (4) Socioeconomic study; (5) Legal framework; (6) Institutional Framework; (7) Eligibility; (8)
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Valuation of and compensation for losses; (9) Resettlement measures; (10) Site selection, site preparation, and relocation; (11) Housing, infrastructure, and social services; (12) Environmental protection and management; (13) Community participation; (16) Integration with host populations; (17) Grievance procedures, Organizational responsibilities; (18) Implementation schedule; (190 Costs and budget; (20) Monitoring and evaluation. To cover above elements feasibility consultant has to do following the detail tasks: 1. Literature Study on Indonesian Regulations and the World Banks Involuntary. Resettlement policy OP 4.12, and formulate project policy if any gap. 2. Work closely with the relevant experts in feasibility team to address land and asset to be acquired based on project design and project components. 3. Preparing entitlement matrix to be discussed and agreed by relevant stakeholders based on project policy that accommodate Indonesian Regulations and the World Banks Involuntary Resettlement policy. 4. To conduct public consultation meeting the project affected persons (PAPs) before implementing inventory of losses (IOL) and social economic survey (SES). 5. To conduct disclosure to the PAPs result of IOL. 6. Work closely with the independent appraisal in defining replacement cost budget. 7. Coordination with local government in preparing grievance procedure and organizational responsibility. 8. To facilitate local government in finding site relocation. 9. To pay attention to the vulnerable peoples, severely people, indigenous people (if any) and ethnic minority (if any). 10. To prepare estimation cost and budget of LARAP. 11. To prepare Monitoring and evaluation of LARAP implementation. 12. Others relevant tasks. d) Methodology
Basically LARAP should be prepared by local government/GOI, therefore consultant has to facilitate, coordinate and assist to local government/GOI during preparation of LARAP document. Consultant must work closely with relevant experts team of feasibility to define the accurate land to be acquired, meanwhile to define replacement cost must refer to independent appraisal that assigned. It would be better work with professional sub-contractor in conducting critical field activity, namely IOL and SES. The IOL and SES should be done after clear land corridor from project design to avoid social problems in the field. e) Output
The main output is the Draft Land Acquisition and Resettlement Action Plan (LARAP), however it should be prepare related document such as Draft Resettlement Policy Framework; External Monitoring Agency (EMA) TOR and HIV/AID Campaign TOR in the feasibility stage.
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Annex E People Met

1.
Sutrisno Tajuddin Lambang Basri Said Musmah Kurniawan Sabar Muh. Harisah Hendra Irham
CSO
LIRA SOLID MTI (Masyarakat transportasi Indonesia) Lembaga Hijau Lestari Celebes (LHLC) Walhi Sulsel Walhi Sulsel Walhi Sulsel KPA Komisi Penanggulangan AIDS and HIV KPA
Nagga Bahar M. Saleh Abd. Salam Tiro Basir Sembang Dg. Gassing Ruslan Kaddeng Abd. Haris Hr Senga Sadia Anti Dg. Kamal Wahid H. Silele Laharuddin Dg. Munding Harifuddin Hasmira Sansalia Kumala Ilyas H. Musa Abd. Wahid Ali Akbar H. Doho Rosnah Jumakir Hanafin Dg. Manna Dg. Emba, s Dg. Nyampa Community leader head of RW 5, coordinator BKM Buloa LPM LPM Buloa BKM coordinator citizen H. Nompo Hasanuddin Jamaluddin Hariany Muh.Rusydi Ramli H. Rasyido
citizen citizen citizen citizen citizen citizen citizen citizen citizen citizen citizen citizen citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen Citizen community leader community leader community leader community leader head of RT 3 RW 1 head of RW 1 head of RW 2 LPM Buloa LPM chairman mosque committee member Page 89 Document Version 3
Azis Lasabbe
2.
Business
Consultant PT. Sinar Galesong, property developer Real Estate Institute
Syah Ali Achmad Max Hethanusa Judarman
3.
Community
head of womens association Citizen citizen citizen community services institute deputy head community services institute head graveyard keeper member of royal family senior citizen citizen
Kecamatan Tallo Ny. Mahani Sirajuddin Ibu Nur Abd.Rahman.S Bahar Pak Deth Hasanuddin L Ibrahim Jamil Andi Candra Tata Andi Gading
Kecamatan Ujung Tanah Hasan Sulaiman Kecamatan Ujung Tanah Kelurahan Buloa Nurhayani St. Subaedah M. said Rani Muh. Rusydi Kelurahan Lakkang Haris Tiro Nurbaya
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Sunniati Drs. H.M Yunus
mosque committee member religious leader
B. Imrayani Muh. Nafri St. Khadijah St. Fatimah Finance section Erwin Indra Secretariat Hesfirama Hafid Ahmad Rifai Office for food security Mulkim Environmental Protection agency Ir. Surono Juliani Jafar Makmun Ir. Yohana Womens empowerment agency Ibu Lia Head of mainstreaming section Kecamatan Manggala Anshar UMAR camat Kecamatan Panakkukang Ardi secretary Abd. Aziz N Kecamatan Tallo Sirajuddin K Achie Suleman,S.STP,M.Si Aswin K. Harun camat secretary secretary Head of Finance head of verification and accounts Law Office head of lands section in secretariat
Kelurahan Rappokalling Ummi head of RT 2 Erni Hartawaty Kelurahan Tallo Irwan Azis Rahman M. Bachtiar T M. Syarif H H.Karim Jumado Muh. Amir M Ismail Jumado,s Umar HK H. Muh Ramli Ismail.H.M Saharuddin Najamuddin Bani Indra rezki Rays Andrew Jost, SE Hasanuddin head of RW 3 head of RW 5 citizen citizen community leader community leader community leader community leader, ex graveyard keeper head of RT 5 head of RT A RW 5 head of RT C RW 5 Head of RW 5 head of RT 2 head of RT 4 RW 4 head of RT A RW 3 head of RT D RW 5 head of RW III member of KSW (tourism awareness group) PT Siagan Boats, assistant director public services institute deputy head chairman of legislation board commission B
4.
Makassar City Council
Abd. Wahab Tahir Hasanuddin Leo
5.
Makassar City Government

Mayor Secretary Adviser Head Secretary Head of infrastructure
Kecamatan Ujung Tanah Zainal A. Takko Secretary Kelurahan Buloa A.Ali Harfan Kelurahan Lakkang Syarifuddin Warrang Ruslan Muh. Anas Kelurahan Pampang H. Syamsul B lurah lurah lurah head of youth
H Ilham Arief Sirajuddin Drs. Agar Jaya, MM Ananto Y Bappeda Drs.H. Syahrir Sappaile,M.si Ismail Hajiali,SE,M.Si Masri Tiro, MSi Hasanuddin Nurbaedah Yulianto Rini Indriani Yanizar Page 90 Document Version 3
Kelurahan Panaikang Banyamin lurah Kelurahan Parangloe H.M Amin S,Sos lurah
Kelurahan Rappokalling Makassar Tallo River Area Development Pre-feasibility Study
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Muh. Amir Nur H. Pangerang Kelurahan Tallo Melani M. Zuuo Arman, SE
Secretary
Pandu Suryo Lands agency Abidin
lurah lurah
6.
Central government
Kelurahan Tamalanrea M. Iskandar Lewa lurah M. Amiruddin Kelurahan Tamalanrea Indah M. Sarbini Disaster Management Agency M. Ismounandar Head Education agency Syafruddin primary and secondary education section
BMKG (Meteorology, climatology and geophysics agency) in Makassar Sukisno Head of data and information section Bappenas Max Pohan Hayu Parasati Arief Deputy for Regional Development Director for urban and rural development Adviser
Ministry of Education and Culture, agency for cultural heritage conservation in Makassar Muh. Ramli head of administration Abd. Rahman Abdullah graveyard keeper graveyard keeper
Fisheries and ocean agency Mustakim fisheries division Ridho Nurhani,Spi Nurrahma M. Sujarwo, SH, Msi Public works agency DR. Ir. M. Fuad, Asis M.Si Ir. Dcahyar Hursay A. Amiruddin Imbang M Denny M.Ansar M. Ihsan Baharuddin M. Hamka M. Asham Revenue agency Syahrun A. Mappanyukki Sosial welfare agency Drs. Muharram, M.Pd Yuyun Tourism and culture office Ir. Hj. Rusmayani head Madjid, MSc A. Mirza Abidin ex-head IR. HJ. Dahlia Kantoro, M.Si Secretary head of sanitation section head of clean water section roads and bridges section sanitation section oceans division
Ministry of Public Works National roads agency in Makassar Rahman Djamil Ministry of Public Works DG Cipta Karya Amwari Idrus Director of settlement development Guratno Hartono Director of building and neighbourhood development Ajar Prayudi Directorate of building and neighbourhood development Nikolas CK Ministry of Public Works DG Water Resources Ministry of Public Works River Management Agency in Makassar Markus D Muhlis Ahmad Ir. Hernawan Ir. Hariyanto Laga,M.Si Ir. Agus Setiawan, Dipl.HE Hamzah M, ATP,Sp1 Andi Muh. Irham, ST,MT Consultant expert staff head head of programming and planning head of programming section
head of PBJKS
SNVT PSN Metro Makassar Rachmat F
7.
South Sulawesi Government
Water supply enterprise Makassar Tallo River Area Development Pre-feasibility Study
Environmental Protection agency TP. M. Harsel Forestry agency Page 91 Document Version 3
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Muh. Ilyas Nurhakim T Information and communications agency Arifin head of planning and programming Spatial planning and housing agency Yurnita (Ibu Ayu) Supardi Ahmad Husain Ruslan M. Ghazali Muhammadiyah Umar, ST Ir. H. Zulkarnaim Kitta, M.Si M.Hasran Bustami, ST head of Mamminasata operations unit Mamminasata operations unit
8.
Academics
UIM Observer of tourism UNHAS centre for environment (PPLH) UNHAS, head of history department UNHAS, head of environmental studies centre UNHAS, history expert UNHAS, history expert UNHAS, lecturer Makassar Tourism Academy, researcher
Al Azhar Amrah (Hanz) Dr. Suhasman Dr. Bambang Sulistiyo Prof. Dr. Ir. Laode Asrul MP Prof. Dr. Abd Rasyid, M.Si Dr. Edward Yansar Djaya Buntu Marannu Eppang
9.
World Bank
Manager operations and portfolio
Josephine Bassinette Taimur Samad Arief Mulya Ramadhian Santo Dewatmoko Efrain Situpak Terry Sing Cho George Soraya Saut Sagala
Tourism and culture agency H.. Jufri Rahman Head Ibu Eda Syafruddin Safaruddin Sabriadi Takdir H.W Mekawati Yulianti Water resources agency Drs. Ir. Abd. Wahab expert staff MT, Ces Ir. Pattiwiri AR, MT head of planning section Ir. Nasser Hasan head of programming section head of history and relics division head of marketing division
10.
Other Donors
NJS Consultants
JICA Sampei Nakanishi Atsushi Toyama AusAID Dewi Kirono Grace Tjandraatmadja
CSIRO CSIRO
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Annex F Bibliography
1. Legislation
Undang-Undang No. 8 Tahun 1995 tentang Pasar Modal (Law 8/1995 on capital market) Undang-Undang Republik Indonesia Nomor 32 Tahun 2004 Tentang Pemerintahan Daerah. ( Law 32/2004 on regional government) Undang-Undang Republik Indonesia Nomor 33 Tahun 2004 Tentang Perimbangan Keuangan (Law 33/2004 on fiscal balance) Undang-Undang Republik Indonesia Nomor 7 Tahun 2004 Tentang Sumber Daya Air ( Law 7/2004 on water resources) Undang-Undang No. 25 Tahun 2007 Tentang Penanaman Modal (Law 25/2007 on investment). Undang-Undang Republik Indonesia Nomor 26 Tahun 2007 Tentang Penataan Ruang ( Law 26/2007 on spatial planning) Undang-Undang Republik Indonesia Nomor 32 tahun 2009 Tentang Perlindungan dan Pengelolaan Lingkungan Hidup (Law 32/2009 on environmental protection and management). Undang-Undang No. 10 Tahun 2009 tentang Kepariwisataan (Law 10/2009 on tourism) Undang-Undang No. 41 tahun 2009 tentang Perlindungan Lahan Pertanian Pangan Berkelanjutan (Law 41/2009 on sustainable protection of farmland) Undang-undang Republik Indonesia Nomor 1 Tahun 2011 tentang Perumahan dan Kawasan Permukiman (Law 1/2011 on housing and residential areas) Undang-Undang No. 2 Tahun 2012 tentang Pengadaan Tanah ( Law 2/2012 on land acquisition) Peraturan Pemerintah No. 41 Tahun 2004 tentang organisasi perangkat daerah ( regional regulation 41/2004 on organisation of regional administration) Peraturan Pemerintah No 54 Tahun 2005 tentang Pinjaman Daerah ( government regulation 54/2005 on regional borrowing). Peraturan Pemerintah Republik Indonesia Nomor 72 Tahun 2005 Tentang Desa (Government regulation 72/2005 on villages) Peraturan Pemerintah Nomor 73 Tahun 2005 Tentang Kelurahan ( Government regulation 73/2005 on subdistricts) Peraturan Pemerintah Republik Indonesia Nomor 38 Tahun 2007 Tentang Pembagian Urusan Pemerintahan Antara Pemerintah, Pemerintahan Daerah Provinsi, Dan Pemerintahan Daerah Kabupaten/Kota (Government regulation 38/2007 on division of government affairs between government, provincial government and regency/city government) Peraturan Pemerintah No. 50 Tahun 2007 tentang Kerjasama Antar Daerah ( government regulation 50/2007 on interregional cooperation ) Peraturan Pemerintah Republik Indonesia Nomor 41 Tahun 2007 Tentang Organisasi Perangkat Daerah (Government regulation 41/2007 on the organisation of regional government administration) Peraturan Pemerintah Republik Indonesia Nomor 42 Tahun 2008 tentang Pengelolaan Sumber Daya Air (Government regulation 42/2008 on management of water resources ) Peraturan Pemerintah No. 45 Tahun 2008 tentang Pedoman Pemberian Insentif dan Pemberian Kemudahan Penanaman Modal di Daerah (government regulation 45/2008 on guidelines for providing incentives and simplifying investment in regions ) Peraturan Pemerintah Republik Indonesia Nomor 34 Tahun 2009 Tentang Pedoman Pengelolaan Kawasan Perkotaan (Government regulation 34/2009 on guidelines for management of urban areas) Peraturan Pemerintah Republik Indonesia Nomor 38 Tahun 2011 tentang Sungai ( Government regulation 38/2011 on rivers) Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2010 Tentang Penyelenggaraan Penataan Ruang (Government regulation 15/2010 on land use) Peraturan Presiden Republik Indonesia Nomor 67 Tahun 2005 Tentang Kerjasama Pemerintah Dengan Badan Usaha Dalam Penyediaan Infrastruktur (Presidential regulation 67/2005 on cooperation between government and business in providing infrastructure )
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Peraturan Presiden Republik Indonesia Nomor 13 Tahun 2010 Tentang Perubahan Atas Peraturan Presiden Nomor 67 Tahun 2005 Tentang Kerjasama Pemerintah Dengan Badan Usaha Dalam Penyediaan Infrastruktur (Presidential regulation 13/2010 on the amendment of Presidential Regulation 67/2005 on cooperation between government and business in providing infrastructure) Peraturan Presiden Republik Indonesia Nomor 55 Tahun 2011 Tentang Rencana Tata Ruang Kawasan Perkotaan Makassar, Maros, Sungguminasa, dan Takalar ( Presidential regulation 55/2011 on spatial plan for the urban area of Makassar, Maros, Sungguminasa, dan Takalar ) Peraturan Presiden Republik Indonesia Nomor 56 Tahun 2011 Tentang Perubahan Kedua Atas Perpres 67 Tahun 2005 Tentang Kerjasama Pemerintah Dengan Badan Usaha Dalam Penyediaan Infrastruktur (Presidential regulation 56/2011 on the second amendment of Presidential Regulation 67/2005 on cooperation between government and business in providing infrastructure) Peraturan Presiden No 71 Tahun 2012 tentang Penyelenggaraan Pengadaan Tanah Bagi Pembangunan Untuk Kepentingan Umum (Presidential regulation 71/2012 on land procurement for the public interest) Peraturan Menteri Dalam Negeri Nomor 5 Tahun 2007 Tentang Pedoman Penataan Lembaga Kemasyarakatan (Minister of Home Affairs regulation 5/2007 on guidelines for civil service organisations) Peraturan Menteri Dalam Negeri Nomor 1 Tahun 2008 Tentang Pedoman Perencanaan Kawasan Perkotaan (Minister of Home Affairs regulation 1/2008 on guidelines for planning urban areas ) Peraturan Menteri Dalam Negeri No. 33 Tahun 2009 tentang Pedoman Pengembangan Ekowisata di Daerah (Minister of Home Affairs regulation 33/2009 on guidelines for the development of ecotourism in regions) Peraturan Menteri Dalam Negeri No. 4 Tahun 2010 tentang Pedoman Pelayanan Administrasi Terpadu Kecamatan (PATEN) (Minister of Home Affairs regulation 4/2010 on guidelines for integrated administrative services in kecamatan) Peraturan Menteri Dalam Negeri No 52 Tahun 2012 tentang Pedoman Pengelolaan Investasi Pemerintah Daerah (Minister of Home Affairs regulation on guidelines on managing regional government investment) Peraturan Menteri negara Perencanaan Pembangunan Nasional/Bappenas Nomor 3 Tahun 2012 Tentang Panduan Umum Pelaksanaan Kerjasama Pemerintah Dengan Badan Usaha Dalam Penyediaan Infrastruktur (State Minister for development planning/BAPPENAS regulation 3/20012 on general guide for implementing joint ventures between government and business in providing infrastructure) Peraturan Menteri Pekerjaan Umum Nomor:18/PRT/M/2010 tentang Pedoman Revitalisasi Kawasan (minister of public works regulation on guideline of revitalisation) Peraturan menteri Pekerjaan Umum Nomor: 06/PRT/M/2006 tentang Pedoman Umum Rencana Tata Bangunan dan Lingkungan (minister of public works regulation on guideline on building layout and environment) Peraturan Kepala Badan Pertanahan Nasional (BPN) No 4 Tahun 1991 tentang Konsolidasi Tanah (regulation of the head of the national lands agency on land consolidation ) Peraturan Kepala Badan Pertanahan Nasional No 5 Tahun 2012 tentang Petunjuk Teknis Pelaksanaan Pengadaan Tanah (regulation of the head of the national lands agency on technical instructions for implementing land acquisition) Keputusan Menteri Negara Lingkungan Hidup No.45 Tahun 1996, tentang Program Pantai Lestari (Minister of environment decree 45/1996 on coastal protection program) SE Menteri Pekerjaan Umum, (No. 04/SE/M/2010 tentang, Pemberlakuan Pedoman Cara Uji California Bearing Ratio (CBR) dengan Dynamic Cone Penetrometer (DCP), Peraturan Daerah Provinsi Sulawesi Selatan Nomor 10 Tahun 2003 tentang Rencana Tata Ruang Wilayah Metropolitan Mamminasata (South Sulawesi provincial regulation 10/2003 on spatial planning of Mamminasata urban area) Peraturan Daerah Provinsi Sulawesi Selatan no 9 tahun 2009 Tentang Rencana Tata Ruang Wilayah Provinsi Sulawesi Selatan Tahun 2009-2029 (South Sulawesi provincial regulation 9/2009 on spatial planning of South Sulawesi 2009-2029) Peraturan Gubernur Sulawesi Selatan No. 16 Tahun 2007 tentang Pembentukan Badan Kerjasama Pembangunan Metropolitan Mamminasata (Makasar, Maros, Sungguminasa/Gowa, Takalar (South Sulawesi gubernatorial regulation 16/2007 on the formation of the agency for cooperation in developing the Mamminasata urban area ) Page 94 Document Version 3 Makassar Tallo River Area Development Pre-feasibility Study
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Keputusan Gubernur Sulawesi Selatan No. 1532/V/Tahun 2007 tentang Penetapan Personalia Badan Kerjasama Pembangunan Metropolitan Mamminasata (Makasar, Maros, Sungguminasa/Gowa, Takalar) (South Sulawesi gubernatorial decree on personal appointments to the agency for cooperation in developing Mamminasata urban area ) Peraturan Gubernur Sulawesi Selatan No. 82 Tahun 2009 tentang Organisasi dan Tata kerja Unit Pelaksana Teknis Dinas (UPTD) Mamminasata pada Dinas Tata Ruang dan Permukiman Provinsi Sulawesi Selatan (South Sulawesi gubernatorial regulation82/2009 on organisation and work arrangements for the operational work unit for Mamminasata within the agency for spatial planning and settlements) Keputusan Gubernur Sulawesi Selatan No. 1593/V/Tahun 2009 tentang Pembentukan Badan Koordinasi Penataan Ruang daerah (BKPRD) Provinsi Sulawesi Selatan ( South Sulawesi gubernatorial decree on the formation of the spatial planning coordination agency for South Sulawesi) Keputusan Gubernur Sulawesi Selatan No 1786|VIII|tahun|2010 ttg pembentukan Tim Koordinasi Pengarusutamaan Gender tingkat Provinsi Sulawesi Selatan ( South Sulawesi gubernatorial decree on forming provincial coordination team for gender mainstreaming ) Peraturan Daerah Kota Makassar No. 3 Tahun 2009 tentang Pembentukan dan Susunan Organisasi Perangkat Daerah Kota Makassar (Makassar City regional regulation 3/2009 on the form and composition of the regional administration) Keputusan Walikota Makassar No 903|kep|260.05|2002 ttg pembentukan Tim dan sekretariat program pengarusutaman gender (Makassar mayoral decree on forming team and secretariat for gender mainstreaming) Peraturan Walikota Makassar No 77 Tahun 2006 tentang Pendelegasian Sebagian Kewenangan Walikota Makassar Kepada Camat Dalam Lingkup Pemerintah Kota Makassar ( Makassar mayoral regulation 77/2006 on delegating part of the authority of the mayor to camat related to city government) Keputusan Walikota Makassar no 260.05|291|kep|II|2012 ttg Pembentukan panitia pelaksana kegiatan pembinaan organisasi perempuan Kota Makassar Th 2012 (Makassar mayoral decree on the formation of an implementing committee for assist ing womens organisations in Makassar City) Peraturan Daerah Kabupaten Kuningan No. 13 Tahun 2008 tentang Organisasi dan Tata Kerja Kecamatan (Kuningan regency regional regulation 13/1008 on organisation and work arrangements for kecamatan) Nota Kesepahaman tanggal 19 Oktober 2003 tahun tentang Kerjasama Pembangunan Prasarana dan Sarana Terpadu Dalam Wilayah Metropolitan Mamminasata antara Pemerintah Kota Makasar, Pemerintah Kabupaten Maros, Pemerintah Kabupaten Sungguminasa/Gowa, dan Pemerintah Kabupaten Takalar (MoU dated 19 October 2003 on integrated infrastructure and facilities development cooperation in Mamminasata metropolitan area, between the governments of Makassar City and Maros, Sungguminasa/Gowa, dan Takalar regencies ) Keputusan kepala Badan Pemberdayaan Perempuan Provinsi Sulawesi Selatan no 061.1|132|PUG|BPPKB|2010 ttg pembentukan panitia pelaksana penguatan focal point pengarusutaman gender (decision of the head of the South Sulawesi womens empowerment agency on the formation of an implementation committee on strengthening gender mainstreaming focal points)
2.
Other readings
Abdul Wahid (2009). Identifikasi Penyimpangan Tata Ruang Wilayah Propinsi Sulawesi Selatan (SMARTek) (Identification of deviations from the spatial plan in South Sulawesi) Adisuara. Tinjauan Atas Pengadaan Tanah Bagi Pembangunan Untuk Kepentingan Umum Berdasarkan Undang-Undang Nomor 2 Tahun 2012. http://adisuara.blogspot.com Agency for meteorology, climatology and geophysics (BMSG) centre for early warning of tropical cyclones (TCWC) Jakarta. 2010.Siklon Tropis Chaba (Chaba tropical cyclone). Agency for meteorology, climatology and geophysics (BMSG) centre for early warning of tropical cyclones (TCWC) Jakarta. 2010.Siklon Tropis Conson (Conson tropical cyclone). Agency for meteorology, climatology and geophysics (BMSG) centre for early warning of tropical cyclones (TCWC) Jakarta. 2010.Siklon Tropis Omais (Omais tropical cyclone).
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Agency for meteorology, climatology and geophysics (BMSG) centre for early warning of tropical cyclones (TCWC) Jakarta. 2010. Learn About Tropical Cyclone.. Agus Cholid Hasyim (1999). Bentuk Pengkaplingan Pada Permukiman Kota diatas Perairan Sungai di Kampung Beling Kota Pontianak (form of subdivision in housing over river in Beling village in Pontianak City). S2 architecture thesis from Universitas Diponegoro. Alimudin Rianse (2004). Laporan hasil Analisis Rencana tata Ruang Wilayah Metropolitan Mamminasata (Makasar, Maros, Sungguminasa, Gowa, dan Takalar) (report on the results of analysis of the spatial plan for Mamminasata urban area). (ISBN 979-3633-06-9) Arif Hasan (2010). High-density housing that works for all. IIED Opinion at www.urbandensity.org Bagian Keuangan Kota Makassar. Financial Statements of local Government for years 2010 2012; Local Government Budget for years 2010 2013; Organization Structure of Local Government Baharuddin Koddeng, Zonasi Kawasan Pesisir Pantai Makassar Berbasis Mitigasi Bencana (zoning coastal areas of Makassar on the basis of disaster mitigation). Group Teknik Arsitektur, Volume 5: Desember 2011. Bappeda Kota Makassar. Gross Domestic Regional Product (GRDP) for the year 2007 2011; Distribution of GRDP by Primary Sector, Secondary Sector and Tertiary Sector; Economic Growth of Makassar; GRDP per capita BPS Makassar: Gross regional product for Makassar city 2011 BPS Makassar: Kecamatan Manggala in figures 2012 BPS Makassar: Kecamatan Panakkukang in figures Tahun 2012 BPS Makassar: Kecamatan Tallo in figures 2012 BPS Makassar: Kecamatan Tamalanrea in figure 2012 BPS Makassar: Kota Makassar in figures 2012 BPS Makassar: Provinsi Sulawesi Selatan in figures 2012 BPS Makassar: Statistics for Kecamatan Panakkukang 2012 BPS Makassar: Statistics for Kecamatan Tallo 2012 BPS Makassar: Statistics Kecamatan Manggala 2012 BPS Makassar: Statistics Kecamatan Tamalanrea 2012 Bulletin Triwulan BOSARA No: 4th III April-Juni 1996. Balai Kajian Sejarah dan Nilai Tradisional Ujung Pandang (bulletin of Bosara, information media on history and culture in South Sulawesi, the agency for the study of history and traditional values in Ujung Pandang ) CSIRO (2012). Streamflow projections for Mamminasata for 2020-2040.Publication. CSIRO: Climate Adaptation National Research Flagships. CSIRO AusAID Alliance. CSIRO (2012). The impact of climate change and urban development on future water security and the adaptation options for Makassar City, Indonesia. A synthesis of findings from Climate Adaptation through Sustainable Urban Development Research Project (SUD). CSIRO: Climate Adaptation National Research Flagships. CSIRO AusAID Alliance. CTI Engineering Co Ltd, PT Virama Karya and PT DCC Consultants. 2001. Consulting engineering services for comprehensive water management plan study for Maros-Jeneponto River Basin, Final Report, Vol.1, Main Report. Darwas Rasyid. 1993. Beberapa Catatan Tentang Benteng-Benteng Pertahanan Kerajaan Gowa Tallo. Balai Kajian Sejarah dan Nilai Tradisional Ujung Pandang ( Notes on the fortresses in Gowa and Tallo, the agency for the study of history and traditional values in Ujung Pandang ) Department of housing and regional infrastructure, research and development agency for development of transportation. Penanggulangan Erosi Permukaan Lereng Jalan dengan Tanaman (Pt T-04-2002-B) Dinas Kelautan, Perikanan, Pertanian dan Peternakan Kota Makassar (2012). Program penyuluhan Perikanan Kota Makassar Tahun 2012 (Makassar city agency for oceans, fishing, farming and livestock 2012 program promoting fisheries for 2012) Dinas Kelautan, Perikanan, Pertanian dan Peternakan Kota Makassar (2012). Pemutahiran Data Potensi Budidaya Perikanan Kota Makassar Tahun 2012.
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Direktorat Produk Pariwisata dan WWF-Indonesia. 2009. Prinsip dan Kriteria Ekowisata Berbasis Masyarakat. Kerjasama Direktorat Produk Pariwisata Direktorat Jenderal Pengembangan Destinasi Pariwisata Departemen Kebudayaan dan Pariwisata dan WWF-Indonesia Januari 2009 (directorate for tourist products and WWF Indonesia, principles and criteria for communitybased ecotourism. Joint paper between the directorate for tourist products in directorate general for development of tourist destinations in the department of culture and tourism and WWF Indonesia) Djoko Kirmanto, Imam S. Ernawi, and Ruchyat Deni Djakapermana (2012). Indonesia Green City Development Program: an Urban Reform. Paper presented at 48th ISOCARP Congress. Eddi Sarwono ND Welling DT (1996). Studi Kelayakan Arkeologi Benteng Tallo Ujung Pandang (Archaeology Feasibility study for Tallo fortress). Project for the support of historical and ancient relics, South Sulawesi Government. G. Tjandraatmadja, A. Ahmad, M. Selintung, D. Kirono, S. Larson, D. Salman, R.A. Barkey, A. Talebe, M.N. Iman, F. Lipkin, L. Neummann, B. Ali, A. Yudono, M. Ismail and S. Maheepala. 2011. Climate Adaptation through Sustainable Urban Development in Makassar, Indonesia, Context and challenges in urban water and wastewater service for Makassar, South Sulawesi, Indonesia. CSIRO: Climate Adaptation National Research Flagships. CSIRO AusAID Alliance. Hayu Parasati (2013). Program Pembangunan Perkotaan Nasional: penyiapan implementasi Kebijakan dan Strategi Pembangunan Perkotaan Nasional (KSPPN). Presentation to TKPPN (national team for coordinating urban development) on 3 May 2013. IIED (no date). Urban Density Solutions. IIED. Alternative Routes to Urban Density. www.urbandensity.org Jack Katzfey, John McGregor, Kim Nguyen and Marcus Thatcher. 2010. Regional Climate Change Projection Development and Interpretation for Indonesia. Final Report for AusAID. CSIRO: Climate Adaptation National Research Flagships. CSIRO AusAID Alliance. Jika plan Kemenkeu (2011). Deskripsi dan Analisis APBD TA 2011 (Ministry of finance, description and analysis of the 2011 national budget). Kemenkeu (2012). Laporan Perkembangan Pinjaman dan Hibah Triwulan III Tahun 2012 ( Ministry of finance report on the status of loans and grants for the third quarter of 2012 ) Kemenkeu (2013). DATA APBD TA 2013. (Ministry of Finance data on 2013 national budget) Kerjasama Balai Laboratorium Kesehatan Prop Sulsel dengan Badan Lingkungan Hidup Daerah Kota Makassar (21012). Laporan Analisis Kualitas Udara Ambien di Kota Makassar. (Joint venture between the South Sulawesi provincial health laboratory and the Makassar city environmental agency 2012, Report on the analysis of the ambient air quality in Makassar ) Kerjasama Pemerintah Daerah Kota Makassar dengan Divisi Tata Ruang dan Pengembangan Wilayah Pusat Kegiatan Penelitian (PKP) Universitas Hasanuddin (2002). Laporan Akhir Studi Penyusunan Konsep Serta Site Plan Makro Pengembangan Kawasan Sungai Tallo. ( Joint venture between the city of Makassar and the division for spatial planning and regional development of the research centre of Hasanuddin University 2002. Final report on the study for development of a concept and macro-site plan for the development of the Tallo River Area). KRI International Corp. and Nippon Koei Co., Ltd. 2006. Badan Kerjasama Pembangunan Metropolitan Mamminasata. Rencana Tata Ruang Terpadu untuk Wilayah Metropolitan Mamminasata (Mamminasata development cooperation agency, integrated spatial plan for the Mamminasata metropolitan area) KRI International Corp. and Nippon Koei Co., Ltd. 2006. Integrated Spatial Plan for Mamminasata Metropolitan Area. Final Report Summary. KRI International Corp. and Nippon Koei Co., Ltd. 2006. Integrated Spatial Plan for Mamminasata Metropolitan Area. Sector Study (8) River Flood Control and Urban Drainage Study. KRI International Corp. and Nippon Koei Co., Ltd. 2006. Integrated Spatial Plan for Mamminasata Metropolitan Area. Sector Study (9) Water Supply and Sewerage Study. Lanneke Tristanto dan Redrik Irawan. Kajian dasar perencanaan dan pelaksanaan jembatan pelengkung beton, Puslitbang Jalan dan Jembatan ( planning and building concrete arch bridges) Lanneke Tristanto, Gelagar jembatan beton mutu tinggi dengan sistim pracetak segmental, Kolokium Puslitbang Jalan dan Jembatan (high standard precast concrete girder bridges) Lembaga Pendidikan dan Pengelolaan Lingkungan (2012). Laporan Hasil Pengukuran Kualitas Air Limbah Sungai Kota Makassar. (Institute for education and environmental management 2012, Report of the results of measuring the quality of waste water in rivers in Makassar) Makassar Tallo River Area Development Pre-feasibility Study Page 97 Document Version 3
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LPM EQUATOR. Final Report on External Monitoring and Evaluation of LARAP Implementation for EINRIP Project. 2012. Bogor. Makassar City Government (2013). Rancangan Perda RTRW (draft city spatial plan) Makassar City Government, Public Works Agency (2013). Profil Permukiman Kumuh Kota Makassar (profile of slums in Makassar). Makassar City Government. 2012. Profil Kelurahan Lakkang (profile of Kelurahan Lakkang). Makassar Maria Christina Endarwati (2012). The Concept and Application of Green Cities in Indonesia. Paper presented to conference at International Conference on Green World in Business and Technology Ahmad Dahlan University Mark Turner and Owen Podger with Wayan K Tirthayasa and Maria Sumardjono (2003). Decentralization in Indonesia: Redesigning the State. Canberra, Asia Pacific Press. Ministry of Public Works Directorate General Cipta Karya Directorate for Handling Housing (2013). Penataan Kawasan Permukiman Kumuh dan Miskin Kawasan Tallo Kota Makassar (regularising slums and housing of the poor in Tallo). Presentation to Mayor of Makassar July 2013. Ministry of Public Works, Direktorat Jenderal Bina Marga. Pelaksanaan pekerjaan beton untuk jalan dan jembatan (Pd.T-07-2005-B) Ministry of Public Works, Direktorat Jenderal Bina Marga. Spesifikasi Penguatan Tebing. Document No. 11/S/BNKT/1991. Ministry of Public Works, Direktorat Jenderal Bina Marga. Standar Perencanaan Geometrik untuk Jalan Perkotaan. Maret 1992. Ministry of Public Works, Direktorat Jenderal Bina Marga. Tata cara penggalian pada pekerjaan tanah (Pd.T-39-2000-A) Nurkasim, 2011. Sejarah Kota Makasar. Sejarah dan Perkembangan Pemerintahan Kota Makasar. http://nurkasim49.blogspot.com/2011/12/ii.html Nurlinda, I., 2010. Metode Konsolidasi Tanah untuk Pengadaan Tanah yang Partisipatif dan Penataan Ruang yang Terpadu. Jurnal Hukum No. 2 Vol. 18 April 2010: 161 174. Fakultas Hukum Universitas Padjadjaran Bandung Jl. Dipati Ukur No. 35 Bandung. Pacific Consultant International Tokyo, Yachiyo Engineering Co. Ltd. Tokyo, 1996. Master Plan and Feasibility Study on Wastewater and Solid Waste Management for The City of Ujung Pandang in The Republic of Indonesia. Data book and drawings. Pemerintah Kota Makasar. Makasar Dalam Angka 2012 (Makassar in figures 2012) PNPM Mandiri Perkotaan (2008). Modul Pelatihan untuk Fasilitator. Ministry of Public Works Jakarta (Training manual for urban PNPM Mandiri facilitators) Program READ. Project Implementation Manual. 2012. Ministry for Agriculture Jakarta Provinsi Sulawesi Selatan (2012). Laporan Penyelenggaraan Pemerintahan Daerah (ILPPD) Tahun 2011 (South Sulawesi province annual report of execution of regional governance for 2011) PT Esa Pratama Cipta Celebes. 2011. Rencana Tata Ruang Wilayah Kota Makassar 2011 2031, Makassar Menuju Kota Dunia Berlandas Kearifan Lokal. Laporan Akhir. Pemerintah Kota Makassar Badan Perencanaan Pembangunan Daerah (spatial plan for Makassar City 20112031, Towards Makassar as a world class city based on local knowledge. Final Report for Bappeda) PT Gafa Multi Consultants (2007). Laporan Pendahuluan Pekerjaan: Penyusunan RDTR Kawasan Konservasi Lingkungan Sungai Tallo - Makasar Untuk Implementasi RTRW Mamminasata Metropolitan Area Provinsi Sulawesi Selatan (Paket-5) (inception report for preparing detailed spatial plan for the conservation area of Tallo River in implementation of the Mamminasata spatial plan in South Sulawesi Province). For Ministry of Public Works PT Gafa Multi Consultants (2007). Rancangan Peraturan Daerah Kota Makassar Nomor __ Tahun 20__ Tentang Rencana Detail Tata Ruang (RDTR) Kawasan Konservasi Lingkungan Sungai Tallo Makassar (draft regional regulation of the city of Makassar on the detailed spatial plan for the Tallo River environmental conservation area. PT Parangloe Indah Makassar. Laporan Akhir Analisis Dampak Lingkungan Hidup (ANDAL) Rencana Pembangunan Permukiman Terpadu Parangloe Indah Makassar (final report on the environmental impact analysis for the integrated housing development in Parangloe Indah). Desember 2007. Page 98 Document Version 3 Makassar Tallo River Area Development Pre-feasibility Study
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PT Virama Karya. 2004. Detail Desain Pengendalian Banjir Kota Makassar dan Sekitarnya, Laporan Akhir (detail design for Makassar City and surrounding area, final report) Rohim Ariful, 2011. Makalah Kerajaan Gowa Tallo. http://rohimboys.blogspot.com/2011/09/makalah-kerajaan-gowa-tallo.html Sadu Wasistiono (2010). Filosofi, Dasar Hukum Dan Arah Kebijakan Penataan Ulang Organisasi Pemerintah Daerah. (Philosophy, legal basis and the direction of policy on reorganisation of regional governments) Seknas Fitra (2012). Laporan Analisis Anggaran Daerah 2011: Temuan-temuan Hasil Studi Pengelolaan Anggaran Di 20 Kabupaten/Kota Partisipan Program KINERJA. ( Secretariat of the CSO for budget analysis 2012, analysis of regional government budgets in 2011: findings on budget implementation in 20 regencies/cities participating in the USAID-Kinerja program) Sri Mulyani (2008). Utang Pemda Capai Ratusan Miliar. Viva News 2 Des 2008. ( Regional government debts reach hundreds of billions ) Sumadi Simatupang, Ridwan Rangkuti, Marlon Sihombing, 2006. Dampak Pemekaran Kecamatan Terhadap Percepatan Pembangunan Masyarakat di Kecamatan Hatonduhan Kabupaten Simalungun. Jurnal Studi Pembangunan, April 2006, Volume 1 Nomor 2 Universitas Sumatera Utara. UK Government Department of Energy and Climate Change, UK Met Office Hadley Centre. 2011. Climate: Observations, Projections and Impacts, Indonesia. Publication. UNISDR (2012). Making Cities Resilient Report 2012: My city is getting ready ! A global snapshot of how local governments reduce disaster risk. WIKA Beton. Standard product drawing prefabricated girder for highway bridges. Wikipedia. 2013. Sumatera Barat. (http://id.wikipedia.org/wiki/Sumatera_Barat). Word Bank (2004). Involuntary Resettlement Sourcebook: Planning and Implementation in Development Projects World Bank (1997). Roads and the Environment: A Handbook. Technical Paper No 376 World Bank (2007). Tools for Institutional, Political, and Social Analysis of Policy Reform: A Sourcebook for Development Practitioners World Bank (2008). The Political Economy of Policy Reform: Issues and Implications for Policy Dialogue and Development Operations. World Bank (2012). Investing in Indonesias Roads: Improving Efficiency and Closing the Financing Gap; Road Sector Public Expenditure Review 2012 World Bank (2013). Creating World-Class, Competitive and Liveable Cities, Indonesia Rising: Policy Priorities for 2010 and Beyond series . World Bank (2013). Indonesia - Country partnership strategy for the period FY2013-FY2015, Washington DC : World Bank. http://documents.worldbank.org/curated/en/2012/12/17559441/indonesia-country-partnershipstrategy-period-fy13-fy15 World Bank (2013). Indonesia Economic Quarterly; Pressures Mounting. March 2013. World Bank. Indonesia: The Rise of Metropolitan Regions: Towards Inclusive and Sustainable Regional Development (undated) World Bank. Kebijakan Operasional Bank Dunia OP 4.01, Kajian Lingkungan Hidup (Indonesian version of Operational policy 4.01 on environmental study ) World Bank. Kebijakan Operasional Bank Dunia OP 4.04, Habitat Alami ( Indonesian version of Operational policy 4.04 on natural habitat) World Bank. Kebijakan Operasional Bank Dunia OP 4.12, Pemukiman Kembali (Indonesian version of Operational policy 4.12 on resettlement)
3.
Egis Tallo River Area Pre-feasibility Study Documents
Inception Report Climate Change Study Design Study Kelembagaan di Kawasan Strategis Sungai Tallo Terpadu (institutional arrangements for the Tallo River integrated strategic area). File name: KELEMBAGAAN DI KAWASAN STRATEGIS SUNGAI TALLO TERPADU v6 Makassar Tallo River Area Development Pre-feasibility Study Page 99 Document Version 3
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Hasil FGD tentang Pembangunan P. Lakkang 30 Mei 2013 dan 4 Juli di Baruga Kelurahan Lakkang (record of the FGDs on development of Lakkang Island on 30 May and 4 July 2013, at the kelurahan community meeting hall). Makassar. Hasil FGD tentang Pengembangan Kawasan-Kawasan Makam Raja-Raja Tallo 07 Juni dan 02 Juli 2013 di Baruga Kompleks Makam Raja-Raja Tallo (record of the FDGs on the development of the area around the Tallo kings graveyard held on 7 June and 2 July at the graveyard community meeting hall). Makassar. Physical Environmental Study Studi Sosial. File Name: Studi Sosial 130714.docx Tallo Economic Study
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Annex G Responses to WB comments

The following table itemizes responses to comments provided on the inception report and studies:
Bank comment
Consultant response
A. Sing Cho (Terry), Urban Specialist, comment on Inception Report Generally, the report fulfil the task specified in the TOR for the data/information collection, but the In the proposal, we did not anticipate already concept design is only preliminary (most of topic having a concept design at this point. Early only with description without details, and no development of the concept was at the engineering at all), so it should be improved for the request of the city government. following comments (some may be addressed at next stage). 1. Existing Situation - the consultant should mark on An improved drawing of the study area was the land-use map, see page 4 of the report, to show included in the second monthly report and our clearly the study area boundary rather than draft final report contains more detail in the narrative, and indicate the location of affected location map structures (housing area). 2. The consultant should provide more details on the current infrastructure, such as "numbers of households have sewerage connections or on-site sanitation facilities, and regular septic management is provided by XXX" instead of qualitative description like "sanitation is inadequate". 3. The consultant should also provide details on the Tallo river (any hydraulic info to indicate the extent of sediment), and detailed land use status quote in Kel Tallo/Lakkang/South and North Bank. 4. Institutional Situation - the consultant should provide the overview of the fiscal deficit of the city, i.e. both revenue and expenditures, and indicate the scale of potential liability (two debts), as well as the details of two potential PPP (reclamation and monorail system). It is suggested to make an organization chart to show the relationship between different department (reporting and/or advisory).
Specific information will be available from the questionnaire in selected areas where households are affected. Other data is available aggregated at the kecamatan level, and variations in kelurahan are very large. More descriptive information is given in the draft final report in the environmental assessment annex. River data will be available in the hydrological design documents. Land use status information is given in the location map and noted in the environmental assessment annex. 1. The fiscal deficit information is provided in the draft final report. 2. A brief mention of the potential PPP projects is mentioned in the financial situation 3, Our organisation chart includes existing organisations with a stake in the project At this stage, our concern is building the competence to manage finances. We envision three aspects to be prioritized at first, the implementation of the governments financial reform program around SPAN (national budgeting and treasury system), a program for building up accounting, auditing, financial management and costing skills, and thirdly establishment of continual performance improvement. Certainly WB public expenditure reviews are helpful for continual improvement as long as it is seen as an internal initiative not an external one. Indeed the idea is that the WB project will create a platform for an on-going program to develop the whole areas. The reference to improved funding is a general one applicable to all six cities in this program, as I think we can readily demonstrate that city funding across Indonesia is far from adequate Of course
5. Key Strategic Issue - Financial, does the consultant propose the project to include a public expenditure review? Or only the accounting system of the city? What are the activities and outcome?
6. Leverage from WB - Does the consultant propose co-financing by other funding? Or further evolve the project like a program, and WB project help city to develop the platform? This comment also apply to consultant's proposal on engaging private funding, and improved funding for local government investment in infrastructure. 7. Quick wins, good idea, but we do need to know more details on the national/local plan for the identified activities.
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Bank comment 8. Urban Planning - the consultant should present the flood control info collected from the river management department to ensure the synergy between the project and local/national flood plan. 9. Sanitation and Drainage - the consultant should present the current sewage master plan (if any) before proposing any specific investment on wastewater collection/treatment to see if it is necessary. With regards to drainage, it is necessary to review the drainage mater plan and/or flood plan to identify the bottleneck in the system before making the decision on the proposed investment.
Consultant response
The river agency has been one of our closest stakeholders in the preparations so far. Selected information from them is provided in our report. Indeed, we will proved comments on the Mamminasata master plan which at present, as far as we can discern has attracted no financing, and covers a very small part of the city.
Of course The biggest problem of garbage collection in Tallo is that garbage from the citys drainage system washes down the river and lands in Tallo. Our purpose in pushing the city to take responsibility for improving garbage collection in Tallo is to help the city understand that it is failing to provide basic service throughout the city. We are no longer proposing a component for Tallo, but our stabilisation pond system will stop garbage flowing down Pampang River to Tallo
I agree the priority of provision of solid waste management service to Kelurahan Tallo, as well as drainage, are clearly the urgent issues to be addressed.
10. Land Market - I suggest the government should start the registration of land plot (legal or illegal) to assess the current status quote as basis to develop the land reserve program (like Hong Kong), which will give the decision maker sufficient information to decide when the land should be put for auction with what sort of conditions (FAR), the consultant should clarify what is "the program's PPP". 11. PMU - the consultant should present the proposed organization of PMU and its reporting and/or advisory relationship with other departments. 12. Legal - what is the intended "new institution"? Protection of Lakkang Island? Or mixed land development? Or protection of Kelurahan Tallo as Heritage City? 13. Work Plan - when will the consultant conduct another FGD to present the design option (it should be up to the details in the TOR). 14. Methods - from their work plan, they already completed all the studies, and they should share with us, so we can know the rationale behind their design options. 15. Safeguard screening - the screening should not only restrained in resettlement, but also the environmental impact.
Included in the special TA for supporting land development
Of course Functions of new institutions and ne functions of existing institutions are fully explained in the draft final report Since the FGD that Terry joined on his first visit we have held many others to develop concepts in the design, to develop the final design and institutional relationships The studies were designed to solicit local feedback and were not intended as deliverables. Due to delays in mobilising some of the team we did not finalise the studies as formal documents, and thus did not share them with the Bank. Agreed
B. Krisnan Isomartana, Environmental Safeguard Specialist, comment on Inception Report 1. General I would like to congratulate the team for the well written and well-structured inception report and for the depth of the research/studies conducted so far Thank you and for so many documents referred in the report. Herewith I would like to share some comments and inputs for the report from environmental safeguard perspective. Page 102 Document Version 3 Makassar Tallo River Area Development Pre-feasibility Study
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Bank comment First of all, I fully support and highly appreciate the project concept to incorporate climate change aspect into the pre-FS study and project design. Also to concur with the effort to promote high density of all new housing in the project area and to support the compact city concept defined in the national urban development policy. Secondly, based on the internal meeting on 18 April 2013, I try to provide suggestions to this inception report that would enable the proposed Pre FS study (especially environmental related chapters) to serve simultaneously as the study to develop the TOR for Environmental Impact Study (EIA). As discussed, the development of the TOR for the EIA study is required by the Indonesian regulation for the proposed activity that shall require AMDAL (EIA). I will mostly frame out my comments based on this perspective. After reviewing the inception report, I completely agree that the project shall proceed with the development of EIA instead of the ESMF (Environmental and Social Management Framework), because the project design, sitting and scope has already been identified (chapter 7 and annex 3) and environmental impact study has already been identified in the Activity 5.2 Report Writing of Draft Environmental Impact Assessment. Several references to environmental impact assessment are also found in the executive summary, page 2 para 2, section 3.3.2 and TOR for environmental expert. This is good progress to move on with environmental impact assessment studies. Now, I will start to explore the proposed strategies to construct the pre-FS study that shall meet the requirement of the TOR AMDAL. Annex 1 of the inception report Detail description of existing situation and the proposed Study Activities 3.1 of Physical Environmental Study, Study Activity 3.2 Climate Change Study, Study Activity 3.8 Engineering Studies and Activity 5.2 Report Writing of Draft Environmental Impact Assessment could actually serve as the major inputs for the TOR development of EIA study. This TOR EIA could actually be completed during pre-FS study and after having public consultation process the TOR EIA can be approved by Provincial Environmental Agency and the Governor of Makassar to be granted approval to proceed with the ANDAL study (EIA). Then the ANDAL (EIA) study could be conducted simultaneously with the Feasibility Study. In other word, the development of environmental impact component of the FS study is actually the ANDAL document (EIA) itself. The ANDAL study could take around 6 months- 1 year, thus approximately the EIA shall be ready for project appraisal around Q1/Q2 2014.
Consultant response
I think we are all surprised by the information on climate change. We have confirmed this with the CSIRO-AusAID consultants working on climate change impacts in Makassar. The impact is less in Makassar than in most other parts of the country Thank you
We include a final draft scope of work for the EIA in our report.
This schedule is rather optimistic. Assuming that the process for approving the TOR and proceeding to tender for the EIA (including I presume an agreement for the loan) will take until early next year, and six to nine months to do the study, I would say ready for project appraisal Q4 2014/Q1 2015 is more reasonable.
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Bank comment The development of EIA TOR during pre-FS is possible and consistent with the TOR for environmental expert (page 56) i.e. will refer to the design proposed for the project and determine the expected environmental impactsidentify critical environmental risks, estimate compliance costs and prepare an implementation program. This is also to fulfil the need of the project to move on quickly as per discussion on 18 April 2013. However, all of these become possible as long as the project design, scope and sitting has already been confirmed and fixed so the environmental expert could start the EIA study. If the project design is still not well defined during FS study, the environmental expert shall develop ESMF instead. If possible, in order to make the timeline above achievable, Egis Consultant should revise the proposal for the FS study and to revise this inception report to change the environmental impact components of the pre FS study to become the creation of the TOR EIA and to change the environmental impact component of the FS study to become the preparation of EIA study (or probably the development of SEA, Strategic Environmental Assessment). However, all of these become possible as long as the project design, scope and sitting has already been confirmed and fixed. 2. Other Environmental Aspect On chapter 4.3 about the physical condition of Tallo River it is written than the dredging shall be required to increase its capacity to handle floods. The expected impact of dredging activities such as to find the disposal area has been covered in the inception report and shall be further investigated during pre-FS study (study 3.1 Physical Environment Study and 3.8 Engineering Study). It is highly recommended that the potential impact of the dredging activities is also defined at this stage. Solid waste management and waste water treatment plant (WWTP) aspects have also been touched upon as key issues to be further analysed in regards with the use of the local government budget and World Banks funding support. As solid waste management issue has been included in the Key Issues, the pre-FS studies shall also need to investigate the current capacity of Makassars Landfill. This should become the part of study activity 3.1, 3.8 or 3.3 urban design studies). Arrangement to protect Lakkang island and heritage site in Tallo has also been addressed by the possibility of private public partnership to create incentives and controls for land use. Potential positive and adverse impact need to be investigated during pre FS study as well. From social aspect, the screening for needed resettlement has been included into the work plan (page 6 para 2).
Consultant response
While agreed this is an important issue, it is not considered difficult. The dredged material is not a high volume compared with the proposed reclamation area on the east coast or the proposed land-fill area adjacent to the river; there is no indication that the material is polluted, according to data from BBWS. A full study is proposed in the feasibility study. Land will also be set aside for long term routine dredging.
We have confirmed that the city has an upto-date plan for solid waste management. we did not pursue the matter further as the citys solid waste management is beyond the scope of this study. We have noted the risks of pollution from an existing land-fill site and taken that into consideration in the design.
No screening needed to Lakkang where there will be no resettlement, though we did engage the community intensively in our study. We have taken the Tallo part out of the proposed project as other parties are engaged in housing improvements and resettlement there
Final Report
Bank comment It is highly recommended that Water Quality data of the Tallo River shall be collected during the study from secondary source and primary source by taking water sample (under study 3.1). Also other environmental baseline information and data (rona awal lingkungan hidup) such as flora and fauna data, natural habitat, forest, hydrology, geological formation etc shall be collected as much as possible during the pre-FS study now to prepare the TOR document for EIA. Discussion with NGO, WALHI, has been conducted and the result of the discussion could become the important input for public consultation component. The discussion minutes with WALHI about Tallo River project should have been incorporated into the inception report to define path forward if needed. Part C of the final report of the pre-FS study about Draft Environmental Impact Assessment (page 16) shall need to be discussed with Banks Environmental Safeguard Staff in addition to the discussion with PMU and Provincial and Citys Bapedalda staff - at least two weeks prior to the final completion of the report 3. Other Suggestions for the Proposed Study Activities: The analyses of the institutional arrangement for safeguard fulfilment and mitigation of the adverse impact from the project (Study Activity 3.7 Institutional and Legal Factors). To study possibility of some alternatives of the project, cumulative impacts and possible public consultation to be conducted to bring the environmental impact assessment document up to the Banks standard ( Part C Draft Environmental Impact Assessment) Review the potential point source and non-point source of pollution to the Tallo River at the catchment area and at the river banks (agriculture source, cattle farm, home industry, domestic etc). (Study Activity 3.1 Physical Environmental Studies). 4. Possible Follow up with parties: response: of course and almost complete BPLHD province (Environmental Agency) and UNHAS environmental research centre to find more environmental data and EIA documents. To follow up with Dirjen Bangda (Directorate General Local Area Development) about Program Lahan Kritis (critical land) in catchment area. They have adopted a successful community based catchment management in Semarang to be replicated in 50 districts across Indonesia. This might be good for catchment area management of Tallo River in the upstream area- in cooperation with Local Government, Perhutani, BBWS and the project. Discuss further with Dept of Agriculture and Forestry about Nipah existence in the area ( is it naturally grown or is planted by human)
Consultant response
Additional information is provided
We can supply notes of meetings with Walhi. Our work with them has been very positive, and we will be urging the city government to engage WALHI throughout the development process. They see our program as a lever for them. From the inception period, the team has had regular and detailed discussion with Bappeda, provincial and city BLHD, academics, and environmental NGO. Several meetings were held with World Bank. A FGD was held on the draft TOR for the EIA.
The main river is only slightly polluted. We have already pointed out the major sources and risks of pollution to the city government, and urged them to take action. As we are proposing a vast increase in potential pollution sources with our high density development policy, it is more important for us to advise on capacity building in proper sanitation, solid waste management and pollution control.
Done
We did not follow this up, as none of the land in the study area can be considered as critical, and BBWS is already preparing a study on the whole river system, which is the appropriate point for this consideration,
We learnt from the community that all the trees along the river are planted.
Final Report
Bank comment Follow up with Dinas P dan K for any possible improvement of the service/information dissemination of the heritage site to attract more visitors and better managed the area with the possibility of expansion. Finally, upon revision to the inception report as per defined above we could concur with the key strategic issues and work-plan and manning schedule as outlined in chapter 9 from environmental safeguards perspective.
Consultant response
Tallo Heritage City now not included in scope. We have already followed up with Dinas P&K about a proposed education program We prefer Terrys option as noted above, to respond to all these matters in the Draft Final report rather than in a belatedly amended inception report.
C. Ibu Dayu, Social Safeguard Specialist, comment on Social Study Bu Dayu has been most polite. Comments have 1 It is a good report for scoping and identification of been accommodated in the draft final report potential social impacts. I must admit that I haven't where we have much input for the TOR of the read other reports that are prepared under the PreFS, rather than reissuing the study FS assignment related to this Study. Meanwhile, I have some comments/suggestions for this Study Report only, that we could discuss further with the consultant team. I noticed that the report is already final, perhaps our comments/suggestions can be put in the other reports of this pre-FS assignment, or TOR for the FS. The Team Leader did not ask for a section on 2 I did not see the method of the study, was it methodology for the study, it was intended as included in other reports? However, I noticed that a working document only, a brief statement on they carried out FGD, and through the pictures it methodology is included in the social impact seemed that they interviewed people. 3 I assume that the Local Government (LG) of Makasar has agreed the idea of the proposed four sub-projects, is there any other potential subproject? Reclamation for housing development and industrial/warehouse development? The study tried to identify the sub-project impact areas by working with the engineers, this is good at this stage, but perhaps the real geographic subproject impact areas are beyond the site areas that are currently identified; The Study covers the likely social impacts with focus on land acquisition and resettlement, likely cultural impacts but not yet for scoping and assessment on the likely impacts related to gender issues, the vulnerable groups, and no assessment at all on the likely having IPs communities through screening. I understand that Makasar is an urban and its fringe areas whereby Tallo is located is urbanizing, it is unlikely to have IPs communities, but this should be justified through screening. The Study did not describe the social-economic characteristics of the families living in the areas where the 4 sub-projects are located. Who are they, original families or in-migrants. what are the average education level, population growth, main source of livelihoods, income, existing community organizations, cultural practices, etc. No explanation on the fishermen kampung, whether there are only a residential of fishermen or both for residential and boat parking and fish load/unload? Improvement for this kampung, if it is included in the Project, will have to involve this aspect. The Study has not made scoping on this aspect.
annex of this draft final report. The four areas of study are not intended as sub-projects, nor intended to be a comprehensive list of social issues. Our recommendations urge the government to adopt a far more participative approach to human settlement development, which we trust will be adopted more widely Indeed, and the proposed technical assistance on guiding informal residential development is most important for all areas impacted by the project. Our estimate is that there will be more than 300,000 low income residents in this area in the long run. Indeed we had not covered gender and vulnerable groups in the study. A brief appreciation of these is included in the social impact annex
A small amount of information has been added in the annex on current situation about the local communities around the area
A small amount of additional information is provided. There are many aspects about this component that will need elaborate study in the FS stage. The most important aspect is to get government agreement not to force them to resettle,
Final Report
Bank comment 8 The Study needs also to identify what kind of programs have been or are at work in the area, PNPM? IFAD? and others? The Study does not clearly explain this and what institutional set-up at the community level that have been established and working or not working well? The Study mentioned briefly about the potential roles of private sector, I think this should be assessed further the likely potential social impacts due to the involvement of private sector and the communities in the area as I would think the majority of the latter are perhaps poor, have lack of education, etc. The Study briefly explained about the OP 4.12 on Resettlement and GOI's regulations on land acquisition for development for public interests. It should have been identified the main gaps that should be addressed by the LG Makasar in the case that all of the proposed sub-projects are to be supported by the Bank. What are the current practices of the LG in improving informal settlements/slums areas particularly in addressing social issues? I am trying to find a Map in the report that shows sub-project sites (and potential impact areas) with a large area development of Tallo river. I remember when we discussed this few months ago with the consultant team, there was a plan for reclamation and also for industrial/warehouse development. This was not identified at all in the report. It is expected that this Study would identify the next steps to be done including necessary studies/instruments to be developed in the preparation of FS and DED stage. It did mention some, but it was not clear when they should be done. If I correctly remember, in addition to scoping, the consultant's TOR also include assignment to develop the necessary TORs for the required study/instruments as identified in this Study. If so, is there a plan of the consultant to prepare such TORs (for Social Assessment, LARAP, etc) ?
Consultant response
Most of the low income areas have received assistance from PNPM, and they have worked well.
Indeed. Significant effort is required to assure that low income people are not precluded from the area or forced to live in inappropriate housing or limited housing choices.
10
The city has a very active slum improvement program, but it is highly dependent on the ministry of public works, through PNPM urban and other programs. These are mainly prepared with the communities, but on occasions work is done by contractors with poorer quality. Our proposal is (a) not to wait until an area becomes a slum to provide infrastructure and (b) assure a strong community based approach The map is now included in the text and with more detail in Annex I. this map also indicates the warehousing and industrial area where we propose housing is also permitted. The location of the large reclamation area is off the map, and at WB request is referred to only briefly, The TOR does not go to the extent of calling for a LARAP TOR, but we have provided a draft TOR as a logical interpretation of the requirement
11
12
D. Comment from Pak Krisnan, Environmental Safeguard Specialist, on physical environment study and draft TOR for EIS Please find below my comment to the environmental Apologies for late transmission of Climate Change Study document Egis produced and am still waiting for "3.2 Climate Change study" as proposed. The TOR for environmental expert as proposed by The team leader asked the environmental expert to advise on measures to address Egis i.e. will refer to the design proposed for the environmental issues through designs by the project and determine the expected environmental two engineers, who then passed their work impactsidentify critical environmental risks, onto our costing engineer. He did not intend estimate compliance costs and prepare an the matter of costs to be included in the implementation program . In general the document study submitted has covered the identification of environmental impacts and risks but lacking of estimated compliance cost and implementation plan. Thanks too Thanks to the team that has prepared the TOR for AMDAL in addition to the environment study that will speed up the appraisal proses and to help Pemkot Makassar to develop AMDAL study earlier as one of the safeguards requirement.
Final Report
Bank comment Physical Environment Study The expected impact of dredging activities such as to find the disposal area has been covered in the inception report and shall be further investigated during pre-FS study (study 3.1 Physical Environment Study and 3.8 Engineering Study). The proposal from Egis of pre-FS study (page 10) also mentioned the effort to find the composition of dredged materials and suitable sites for disposal -using data and on-site observations from university and NGO. But we could not find this information in the attached report. The TOR for further study of dredging activities and its impact must be prepared if it is not covered in this environment report. The Egis proposal on page 5 mentioned about Waste and Sewage disposal and stipulated that the problems with rubbish and sewage are not "technically difficult problems" and the issue of water quality of the river is important. However the report has not touched upon the proposed engineering / technology alternatives for solid waste management and waste water treatment plant. Further analysis in regards with the use of the local government budget or World Banks funding support shall need to be considered. As solid waste management issue has been included in the Key Issues, the pre-FS studies shall also need to investigate the current capacity of Makassars Landfill. The environmental report did not cover this and this should become the part of engineering study activity and urban design study. The team has prepared the DRAFT KERANGKA ACUAN (TOR) for AMDAL study. This is an important step and the document shall be further improved and used by Pemkot Makasar to prepare AMDAL study. It is highly recommended that during this pre FS study the team obtain Water Quality data of the Tallo River from secondary source and primary source by taking water sample (under study 3.1).
Consultant response
This also was not requested of the environmental expert at the time, as it required waiting for information from the hydraulic engineer who was mobilised later. We found no research data on the quality of dredging material, though anecdotal evidence suggests no likely threat. Research is included in the TOR of the EIS. We trust the information in the draft final report is adequate.
As Makassar has extensive advice on this matter from both JICA and IndII-AusAID, we have not proposed a specific program related to solid waste or sanitation, except for the riverside housing, and for stabilisation ponds to assure capture of floating rubbish and reduction of BOD in estuaries before entering the river.
See comment on Inception report above
It was prepared by the environmental expert with input from the team.
Also to investigate the availability of other environmental data, especially the environmental baseline data ( rona awal lingkungan hidup) such as flora and fauna data, natural habitat, forest, hydrology, geological formation etc to prepare for the preparation of the TOR for AMDAL. The climate change study ( Study 3.2) shall identify assumptions on the impact of climate change and its recommended staged responses (Egis proposal page 11). The flood prevention effort must include the draft TOR for more detail investigation of the construction of the Polder system and the disposal of the sediment (Egis proposal page 5). The climate change impact and the proposed mitigation efforts must be incorporated into TOR AMDAL as well. Page 108 Document Version 3
Data from Balai Sungai has been obtained. It shows some pollution mainly from domestic waste, but shows no significant problems, as now mentioned in this report. Reliable data on water quality would require sampling at different locations and in different seasonal conditions, and as Balai Sungai data did not show significant pollution, it was decided that neither an extensive investigation or a cursory one would provide significant benefit to a pre-feasibility study Done
Done
Final Report
Bank comment Discussion with NGO, WALHI, has been conducted and the result of the discussion could become the important input for public consultation component. The discussion minutes with WALHI about Tallo River project should have been incorporated into the environment report to define path forward. Part C of the final report of the pre-FS study about Draft Environmental Impact Assessment shall need to be discussed with Banks Environmental Safeguard Staff in addition to the discussion with PMU and Provincial and Citys Bapedalda staff - at least two weeks prior to the final completion of the report Other Suggestions for the Proposed Study Activities: To include the analyses of the institutional arrangement for safeguard fulfilment and mitigation from the Local Government (Study Activity 3.7 Institutional and Legal Factors). To study possibility of some alternatives of the project, cumulative impacts and possible public consultation to be conducted to bring the environmental impact assessment document up to the Banks standard ( Part C Draft Environmental Impact Assessment) Review the potential point source and non-point source of pollution to the Tallo River at the catchment area and at the river banks (agriculture source, cattle farm, home industry, domestic etc). (Study Activity 3.1 Physical Environmental Studies). Possible Follow up with parties: BPLHD province (Environmental Agency) and UNHAS environmental research centre to find more environmental data and EIA documents. To follow up with Dirjen Bangda (Directorate General Local Area Development) about Program Lahan Kritis (critical land) in catchment area. They have adopted a successful community based catchment management in Semarang to be replicated in 50 districts across Indonesia. This might be good for catchment area management of Tallo River in the upstream area- in cooperation with Local Government, Perhutani, BBWS and the project. Discuss further with Dept of Agriculture and Forestry about Nipah existence in the area ( is it naturally grown or is planted by human) Follow up with Dinas P dan K for any possible improvement of the service/information dissemination of the heritage site to attract more visitors and better managed the area with the possibility of expansion. Comments from meeting with Egis on 20 July Engineering study. They havent received it, but you confirmed that it will be part of the DFR How was defined the impacted area? Mention all the projects which can interact with ours (reclamation, ADB project, ) If we dont have data on them, we only mention them. Makassar Tallo River Area Development Pre-feasibility Study
Consultant response
See note above on same comment on Inception Report
See note above on the same comment on Inception Report
Not included in study but a section on safeguard management is included under institusional arrangements Alternatives were considered for river management, precise siting of the riverside road and levees, design of stabilisation ponds, and relation of the project to proposed sewerage treatment facilities. Brief statements are made about likely future pollution sources
Engaged from the beginning of the work
See comment above
See comment above
See comment above
Indeed the engineering study is now incorporated in the draft final report, as is the construction cost estimating study This is developed within the text of section 2 A special section is included in section 4.6 on institutional assessment
Final Report
Bank comment Did you review all the reports listed in the TOR Social study: You shall provide TOR for hiring a consultant to conduct study referring to the TOR: The consultant shall identified any effect on the biophysical or socio-economic environment of the project, and prepare the draft outline of the required safeguard instruments for Makassar to hire independent safeguard consultant at feasibility study stage, and shall conduct analysis on the physical/chemical composition of river sediment and propose the suitable dredging/disposal method. Will it be done?
Consultant response
We believe that we already did so for the Inception Report Indeed, except that the analysis of the composition of the river sediment will be within the TOR of the independen safeguard consultant.
D. Sing Cho (Terry), Urban Specialist, comment on Draft Final Report General Thank you 1 The consultant fairly address the key requirements in TOR and in the context of Makassar. We have provided more information on 2 The consultant's proposal rightly depict a phased phasing and have provided more detail on the development approach, including different resource (national/local/PPP) in different time line. Hence it is components in the costing summary. necessary for the consultant to prepare a table to summarized the phased development approach in terms of proposed activities for the sake of clarity. More detail has been provided on other 3 The consultant has referred to other program and programs. studies by others (govt, IFI or donor) in the same area as key justification on neglecting some initial requests from Makassar, which should be make detailed reference by adding the clear reference note in the text and full reference details in Annex H, which will greatly help the audience to cross reference to the referred program and studies. This request has proven to be most difficult 4 The consultant did present the alternative analysis to comply with in the short time available, in section 2.6, and mention the approach of cost to primarily as we are working with very little benefit ratio, which is fine, but they should list the detailed analysis in table (the investment cost, O&M data on comparative costing at this prefeasibility stage. However, we have added cost, and/or land/resettlement cost) then compare further justification for the alternatives put with the anticipated benefits to give a full picture to forward. We have limited many alternatives in the decision maker on the rationale of the order to maximise our support for the citys recommended option. spatial plan. 4 Project Component Comp 1 (dredging) - there is an inconsistency on the dredging volume between Annex B (3 million m3 in worst case scenario) and cost estimate (3.12+1.56 = 4.68 million m3), please clarify the basis to estimate the dredging volume (why need to lower the river bed by 1.7m in average?), and its purpose/benefits (missing in main text), navigation? Any river hydrology data has been collected? It also refer to a study this year under contract to BBWS without any details (scope, time line...etc) which is crucial for the next stage of feasibility study.
We greatly appreciate this comment, which has led us to make a thorough re-evaluation of the original work done, and failed to take adequate consideration of developing policies of BBWS. It would appear that dredging has a lower rate of return than raising the levee, and that the large program proposed in the draft report would reduce flood levels by mere centimetres. The most important place for dredging is at the river mouth, where the citys proposed reclamation project will be, and is best left to that initiative that can make use of the spoil. Dredging of the river, if needed, can be carried out in later stages.
Final Report
Bank comment 5 Comp 1 (dike) - the proposed dike only has a 0.6m free board above the water level, and the referred CSIRO study state the rise of sea level will be 0.56m (2050) and 1.10m (2100), which they only recommend further improvement on accounts of long observations of water level, did the consultant already try other ways to get information on climate projections to their own trend analysis?
Consultant response
Indeed the consultants tried many ways to get information on climate change, and found the CSIRO study to be more detailed and more rational than others. An explanation for limiting the height of the levee has been provided in this final report, and we anticipate that the forthcoming BBWS study will show that the heights used will provide significantly more than 60 cm free board. Alternatives for accommodating further sea rise include a sea barrage and increasing the height of the levee through re-landscaping the riverside park. The weakness of the 2004 data is recognised, and we acknowledge that improved data will be available later from the proposed BBWS study. The design at prefeasibility stage is essentially in order to get an approximate cost of the flood mitigation effort. The function of the stabilisation ponds has now been explained. Perhaps we have miscommunicated the intention of the term access. The component called access means providing sufficient roadway and linkages in and out of a development area that will house over 300,000 people. It is expected that 1 million square meters of floor space will be on the high density mixed-use strip on the road to be developed with World Bank funding. The ambiguity of the wording of link roads has been removed in the final report. The final report has made corrections
Comp 1 (canal/flood gate) - there is high uncertainty on the proposed canal and flood gates, as it is purely derived from the detailed design done in 2004, which is assumed based on the previous (outdated) flood protection plan study, and is subject for re-calibration by river authority (BBWS?). The function of stabilization ponds should clarified, retention? pollution reduction? with missing details. Comp 2 (riverside park road) - the proposed road is huge for the purpose of access road (38m wide with 6 lanes of carriageways) to the existing community and anticipated development, which need to be justified by a comprehensive traffic analysis, what is the analysis and implementation plan of the RTRW transportation plan for the planned connecting roads? In cost estimate, it shows the investment of connector roads, but it also say "it is proposed that the city builds a number of link roads to the riverside road stage 1". Please elaborate the progress of monorail implementation plan. Comp 2 (bridges) - there is no details in the main text to justify its rationale, and there is an inconsistency on the numbers of bridge between Annex B (only Tello Baru Bridge - 26m wide with 6 lanes of carriageway) and cost estimate (Pampang Kecil/Tello/Kera-Kera), and the map in main text should show each bridge/flood gate with name and keep the consistency among text/annex/cost estimate. Comp 2 (river transport piers) - there is no details in the main text to justify its rationale, and there is an inconsistency on the numbers of pier between Annex B (five) and cost estimate (2 - Pier 1/2), and the map in main text should show each pier with name and keep the consistency among text/annex/cost estimate. What is the plan to invite the private sector to link the piers to other public transport. Comp 3 (city park) - it sounds like a beatification sub-project without sufficient justification to prove its benefit. Except for the smaller park (landscaping) nearby piers, it is difficult for people to access. Comp 4 (improved housing) - there is no details at all in Annex B, which result in no basis for cost estimate. What type of basic infrastructure is required for the proposed/existing housing in selected areas? As the consultant point out that there are several initiate to assist settlements of urban poor, did the consultant review these other programs to avoid duplication of assistance in the same area?
10
11
Maps and text are now clear and consistent. The justification for river transport currently is political and it is part of the city request to the World Bank. We are proposing a full evaluation of the potential demand and likely subsidy required, not only for river transport but for all efforts to promote public transport. Indeed part of this needs private sector to participate in creating high demand at all nodes. Indeed the development of such a large park will take many years. Parts of it are intentionally made difficult to access, as they are intended more to support the urban environment than to provide recreation space. Indeed there is no basis for the cost estimates, as there is no clear picture yet of the extent of local infrastructure requirements. Our estimates (now revised) are based on the budgets for slum improvements in Tallo. There is no duplication, in fact all such programs will come within the oversight of DJ Cipta Karya in the Ministry of Public Works
Final Report
Bank comment 12 Implementation Arrangement The statement of "under output-based disbursement" can be exempt from Bank's procurement review is wrong, which is subject to if the Bank agree with the Borrower to use country system or not. Addition comment on Costing Annex: It is totally unacceptable if Egis is not going to send the translation of this important document (Cost Estimate) to WB ASAP, as its draft final report did not contain any breakdown on the cost estimate.
Consultant response
This has been a misunderstanding from another project, the statement is not necessary and will be omitted.
13
A full edition of the translated costing will accompany the final report at the final meetings. We apologise for the delay.
Krishnan Isomartana (Environmental Safeguard Specialist) on final report Thank you Our concerns have been addressed in the matrix response. No further comments so far. If there is any new development I will email you before Sunday. Iwan Gunawan (Senior DRM Specialist) and Suryani (DRM officer) on final report Will be done. 1 It can expected that to get high resolution data to study climate change impact at the small area like Tallo river will be a challenge. The report certainly suffers this issue. It would be good to mention this clearly in the report and how the consultant addresses this issue as well as their recommendation on how to deal with the data issue in the future. Indeed we have referred to many sources, 2 The draft refers to CSIRO report quite a lot, and I was wondering (without knowing their TOR) whether and find that the CSIRO study is by far the most sophisticated and applicable. they have tried other ways to get information on climate projections, etc (e.g., get more detailed data from BMKG/Met Agency and do a little bit of analysis to show trends, anomaly etc.). The report could just refer to the CSIRO study and use the space to do its own synthesis to highlight the important climate related factors and implications. The final report rewrites all sections on 3 It would be great if the report can then focus on climate change to address this issue specific adjustment or measures that can be undertaken to develop the Tallo river area. Referring to the City Government's idea to develop new tourist attraction, water transport, energy and integrated port, the report could highlight more specific climate risks and challenges that need to be considered.
Final Report
Annex H Study Team

1. Owen Podger, team leader Owen is an Australian urban designer and public management adviser with over forty years experience, mostly in Indonesia. He is a resource person for Indonesias urban development policy and recently governance adviser to the office of the Vice President. Email address: owenpodger@gmail.com 2. Rusydi Kotanegara, environmental specialist
Rusydi Kotanegara has conducted environmental impact planning of many major projects that have had major impact on communities, many for creation of dams. From 1978 to 2005 Rusydi was staff of the Institute of Ecology at Padjadjaran University. Email address: rusydikotanegara@yahoo.com 3. Harris Syarman, financial adviser
Harris Syarman is a financial and economist specialist in urban and rural area development with over thirty years experience mostly in local government project. Having experience of undertaking financial and economic analysis of the project and preparing Financial Monitoring Report (FMR) Email address: harris_syarman@yahoo.co.id 4. Rimun Wibowo, social expert
Rimun Wibowo is social expert in urban and rural area development with over eighteen years experience mostly in local government projects. He has extensive and varied experience in undertaking project social include land acquisition and resettlement Email address: rimunwibowo@gmail.com 5. Prayogo, hydrology engineer
For almost thirty years Prayogo was dedicated to the Research Institute for Water Resources in Bandung as hydraulic engineer conducting survey, hydrologic/hydraulic analysis, design, hydraulic model test, and for almost ten years has worked for engineering consultants as hydraulic engineer / hydrologist. Email address: prayogo_e@yahoo.com 6. Masud Sar, structural engineer
Masud Sar has been a practicing civil engineer and academic working mainly in South Sulawesi since 1993. Email address: masud_sar@yahoo.co.id 7. Dian Firdaus, institutional specialist
Dian Firdaus specializes in public policy and law for developing institutions of government, civil society, and private development mostly for local government, water management, waste management, and Public Private Partnership (PPP). Email address: d.firda7864@gmail.com
Final Report
8.
Irwan Anwar Said, urban designer
Irwan Anwar Said is an urban planner who has worked for engineering consultants with over thirteen years experience in twenty provinces and thirty one cities in Indonesia. He specializes in urban design, coastal planning, island planning, pre-feasibility studies, drafting local regulation for regional planning, and improving the quality of space energy (feng shui/hong shui). Email Address: irwan_anwarsaid@yahoo.com 9. Rosmiati Muhayang, team manager and assistant social expert
Rosmiati Muhayang is a social expert with extensive an varied experience in undertaking social issues in South Sulawesi especially in Makasar City. She also has with extensive and varied experience in conducting coordination with stakeholders of Makasar City. Email address: rosmuhayang@yahoo.com 10. Steven Robinson, cost engineer
Steven graduated as a civil engineer that has experience as a cost estimator working in Sulawesi and Papua. Email address: steven_arv81@yahoo.com 11. Nurmalasari, Mapping consultant
Architect graduate of Hasanuddin University with experience in AutoCAD, construction, and mechanical and electrical drawing. Email address: mala_architect@yahoo.com 12. Widyawati, secretary receptionist
Young arts graduate in first secretarial job has learnt quickly to support the team and organise team events and meetings. Email address: widyawati.mks@gmail.com
The team has also gratefully received inputs from Universitas Hasanuddin Faculty of Law for legal opinions on a wide range of issues: 13. 14. 15. Professor Achmad Ruslan, legislation expert Professor Andi Pangerang Moenta, expert in law on government Professor Marwati Riza, constitutional expert
Final Report
Annex I
Project Costing
Detail tables of cost calculation are submitted in a separate volume of this report.
Final Report
Annex J Drawings and Maps

This Annex is in a separate A3 volume
Maps 1. 2. 3. 4. 5. 6. 7. 8. Location map Proposed land use plan Location of component 1 works: flood mitigation Location of component 2 works: access Location of component 3 construction: river park Location of component 4 works: housing improvements Location of land-freeing Proposals for Tallo Heritage City
Ilustrations 9. 10. 11. 12. 13. Aerial perspective View of Kera-Kera pier View over Unhas View of Tello Baru Bridge with ferry pier under Proposals for Tallo Heritage City
Engineering Drawings 14. 15. a) b) c) d) e) 16. a) b) River level data Engineering drawings component 1 levees Cross-section 2m h 3m w levee Cross-section 2.5m h 3m w levee Cross-section 3m h 3m w levee Cross-section 4m w 38m w levee for roadway Cross-section Tello Canal Engineering drawings component 1 canals and ponds Cross-section Pampang Canal Cross-section of stabilization pond
Final Report
17. a) b) c) d) e) 18. a) b) c) d) e) f) g) h) i)
Engineering drawings component 2: roads Cross-section 38m riverside road Bus-stop and taxi stands riverside road U-Turns riverside road Cross-section 3m road Cross-section 2m path Engineering drawings component 2: bridges Tello Baru Bridge: Cross-section 80 m span 26 m w Tello Baru Bridge: Detail girder Tello Baru Bridge: Detail abutment Kapassa Bridge: Cross-section 46m span 26m w Kapassa Bridge: Detail girder Kapassa Bridge: Detail Abutment Pampang Kecil Bridge: Cross-section 5m span 26m w Pampang Kecil Bridge: Detail girder Pampang Kecil Bridge: Detail Abutment

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2 - PROJECT DESCRIPTION ...................................................................................... 7

3 - IMPLEMENTATION ARRANGEMENTS ............................................................... 39

4 - PRE-FEASIBILITY ASSESSMENT ....................................................................... 52

Table of Contents of Annexes .................................................................................... 65

Makassar Tallo River Area Development Pre-feasibility Study

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Abbreviations and Acronyms

Makassar Tallo River Area Development Pre-feasibility Study

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1.2. Country Context

Makassar Tallo River Area Development Pre-feasibility Study

1.3. City Context

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Makassar Tallo River Area Development Pre-feasibility Study

Makassar City has a hole where the ancient Makassar used to be

1.3.4. Makassar strategy for coastal defence: reclamation

Makassar Tallo River Area Development Pre-feasibility Study

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1.3.6. Dramatic impact on urban form

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Makassar Tallo River Area Development Pre-feasibility Study

1.3.7. Engaging partners in development

1.4. Introduction to this Report

Makassar Tallo River Area Development Pre-feasibility Study

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Makassar Tallo River Area Development Pre-feasibility Study

Downstream Tallo River Urban Development Area

2.2. Development Strategy

2.2.2. Project Beneficiaries and indicators

2.2.3. Phasing of development

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Lower income housing support

Capacity of the community

Lakkang island residents

Minimized relocation of households

Current community living in the area

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2.2.4. Intermediate outcomes

Objective Riverside Park

Benefit indicator for economic appraisal

Makassar Tallo River Area Development Pre-feasibility Study

2.3. Description of the existing situation

2.3.1. Physical and social situation

Kings grave yard in Tallo

Garbage at entrance to Tallo

Makassar Tallo River Area Development Pre-feasibility Study

Lurahs office on Lakkang Island

2.3.2. Institutional situation

2.4. Defining project components

Component Investment to Make Tallo River System Flood Free (Objective 1)

Other Phase One activities

Local drainage as area develops

Investment to Create Access with Higher Density

Riverside road stage 1, selected river transport piers

Investment to Create a Heritage City and City Park

Selected parts of the riverside park, landscaping along road

Commencement of heritage city and river-based tourism

Investment to Provide Improved Housing

Slum improvements, public housing, revitalisation and neighbourhood infrastructure.

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