Project Completion Report

PCR: INO 29313

Coral Reef Rehabilitation And Management Project (Loan 1613-INO) in Indonesia July 2005

CURRENCY EQUIVALENTS

Currency Unit – rupiah (Rp)

At Appraisal At Project Completion (January 1997) (January 2005)

Rp1.00 = $0.0002 $0.0001 $1.00 = Rp5,000 Rp9,160

ABBREVIATIONS ADB – Asian Development Bank AIGA – alternative income-generating activity AMSAT – Australian Marine Science and Technology AusAID – Australian Agency for International Development BAPPEDA – Badan Perencanaan Pembangunan Derah

(Provincial/District Planning Agency) BAPPENAS – Badan Perencanaan Pembangunan Nasional

(National Development Planning Agency) BME – benefit monitoring and evaluation BRI – Bank Rakyat Indonesia CBM – community-based management COREMAP – coral reef rehabilitation and management program CRITC – coral reef information and training center CRMP – coral reef management plan CRSIS – coral reef spatial and information system DEPDAGRI – Ministry of Home Affairs DKP – Ministry of Marine Affairs and Fisheries GEF – Global Environment Facility IUCN – International Union for the Conservation of Nature Kab – district LIPI – Indonesian Institute of Sciences LSM – nongovernment organization MCS – monitoring, control, and surveillance MMA – marine management area MMAF – Ministry of Marine Affairs and Fisheries M&E – monitoring and evaluation MOF – Ministry of Finance NGO – nongovernment organization NSC – national steering committee PC – public communication PERDA – district regulation PIMPRO – project manager PMO – Project management office Pokja – interagency working group PSC – provincial steering committee RPTK – coral reef management plan SK – decree TA – technical assistance TC – training committee

TCU – training coordination unit UNHAS – University of Hassanuddin UNRI – Universitas Riau

(University of Riau) WB – World Bank

WEIGHTS AND MEASURES

ha – hectare km – kilometer m – meter

NOTES

(i) The fiscal year (FY) of the Government ended on 31 March until 2000 and now ends on 31 December. FY1999/2000 denotes the last fiscal year ending 31 March 2000. FY2000 denotes the fiscal year beginning 1 April 2000 and ending on 31 December 2000.

(ii) In this report, “$” refers to US dollars.

CONTENTS

Page

BASIC DATA ii MAP vi I. PROJECT DESCRIPTION II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 5 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Consultant Requirement and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 8 K. Performance of the Asian Development Bank 8

III. EVALUATION OF PERFORMANCE

A. Relevance 8 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 9 E. Environmental, Sociocultural, and Other Impacts 9

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment 10 B. Lessons Learned 11 C. Recommendations 11

APPENDIXES 1. Project Framework 13 2. Coral Reef Research, Training, Information, and Monitoring System Component 16 3. Training Activities Under the Community-Based Management and Surveillance 21 4 Project Costs, Loan Allocation, Cancellations, Actual Disbursements and Government Counterpart Budget 22 5. Project Implementation Schedule 27 6. Status of Compliance with Loan Covenants 28 7. Consulting Services Schedule 31 8. List of Equipment, Vehicles, and Motorcycles Procured 35 9. Organization Chart of LIPI/PIU-LIPI 36

BASIC DATA A. Loan Identification 1. Country 2. Loan Number

3. Project Title

4. Borrower 5. Executing Agency

6. Amount of Loan 7. Project Completion Report Number

Indonesia 1613 Coral Reef Rehabilitation and Management Project Republic of Indonesia Indonesian Institute of Sciences $7,000,000 PCR:INO 882

B. Loan Data

1. Appraisal (Loan Fact-Finding/Pre- Appraisal)

– Date Started – Date Completed 2. Loan Negotiations – Date Started – Date Completed 3. Date of Board Approval 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement – Actual – Number of Extensions 6. Closing Date – In Loan Agreement – Actual – Number of Extensions

7. Terms of Loan Commitment Charge Service Charge

– Interest Rate – Maturity (number of years) – Grace Period (number of years)

23 June 1997 15 August 1997 16 February 1998 17 February 1998 26 March 1998 15 May 1998 16 August 1998 06 August 1998 0 31 October 2001 22 December 2003 2 0.75% 0 ADB’s pool-based variable lending rate system 15.0 years 3.0 years

8. Disbursements

a. Dates Initial Disbursement

25 August 1998

Final Disbursement

22 December 2003

Time Interval

64 months

Effective Date

06 August 1998

Original Closing Date

31 October 2001

Time Interval

39 months

iii

b. Amount ($’000) Category or Subloan

Original

Allocation

Last Revised

Allocation

Amount

Canceled

Amount

Disbursed

Undisbursed

Balance

Equipment 900 890 10 878 12 Material 435 0 435 0 0 Surveys, Inventory, and Workshop

1,547 1,562 (15) 1,370 192

Training and Fellowships 1,152 1,400 (248) 1,432 (32) Research and Development (Extension and Demonstration)

457 457 0 482 (25)

Consulting Services 1,363 1,849 (486) 1,848 1 Interest and Commitment Charges

607 607 0 607 0

Unallocated 539 0 539 0 0 Total 7,000 6,765 235 6,617 148

9. Local Costs (Financed) - Amount ($’000) 2,563 - Percent of Local Costs 82.38%

- Percent of Total Cost 25.00% C. Project Data

1. Project Cost ($’000) Cost Appraisal Estimate Actual

Foreign Exchange Cost 4,691 4,298 Local Currency Cost 7,309 5,952

Total 12,000 10,250

2. Financing Plan ($’000) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 4,750 3,389 ADB Financed 6,643 a 6,254 Other External Financing 0 0

Total 11,393 9,643 IDC Costs Borrower Financed 0 ADB Financed 607 607 Other External Financing 0 0

Total 12,000 10,250 ADB = Asian Development Bank, IDC = interest during construction. a Includes $250,000 grant for a feasibility study of the proposed COREMAP II Project.

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3. Cost Breakdown by Project Component ($’000) Component Appraisal Estimate Actual A. Project Managementa 3,590 4,372 B. Coral Reef Information and Training Centers 5,130 4,431 C. Community-Based Management 760 840 D. Total Baseline Costs 9,479 9,643 Physical Contingency 366 Price Contingency 601 Baseline Costs + Contingencies 10,446 9,643 Interest During Construction 607 607 Taxes and Duties 948

Total Project Cost 12,000 10,250 a Includes grant of $250,000 toward feasibility study of proposed COREMAP II. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants 3rd quarter 1997 March 1999 Civil Works Contract (Infrastructure) not applicable Date of Award Completion of Work Equipment and Supplies Dates First Procurement 1st quarter 1998 January 2000 Last Procurement 1st quarter 1999 February 2002 Start of Operations Beginning of Start-Up 3rd quarter 1997 December 1997 Other Milestones First Partial Cancellation August 2002 Second Partial and Final Cancellation December 2003

5. Project Performance Report Ratings

Ratings Implementation Period

Development Objectives

Implementation Progress

From June 1998 to December 2000 S S From March 2001 to December 2003 (last PPR) S S PPR – project performance report; S - satisfactory D. Data on Asian Development Bank Missions Name of Mission

Date

No. of Persons

No. of Person-

Days

Specialization of Membersa

Fact-Finding and Pre-Appraisal Mission

23 June – 24 July 1997 (initial)

13–15 August 1997 (continuation)

5

1

160

3

a, b, c, d

Inception Mission (jointly with WB)

29 Aug – 7 September 1998 3 24 a, e

Project Review 1 (jointly with WB)

22 February–7 March 2000 2 21 a, c, f

Project Review 2 (Special Loan Adm. – various projects)

10–21 July 2000 1 1 a

v

Name of Mission

Date

No. of Persons

No. of Person-

Days

Specialization of Membersa

Midterm Review (jointly with WB and AusAID)

23 October–7 November 2000

1 16 a

Project Review 3 (jointly with WB and AusAID)

26 April–9 May 2001 1 14 e

Project Review 4 (jointly with WB and AusAID)

14–28 February 2002 1 15 g

Project Review 5 20–29 May 2003 1 10 g Project Completion Reviewb

31 January–11 February 2005

3 36 b, g, h

AusAID – Australian Agency for International Development; WB - World Bank a a – senior project specialist; b – project economist; c – project specialist; d- consultant; e – resident representative,

IRM; f – senior project officer, IRM; g – senior agriculture and natural resources specialist; h – project officer

b The project completion report was prepared by Weidong Zhou Senior Agriculture and Natural Resources Management Specialist (Mission leader), B. Alimov, Project Economist, and H. Taylor, Project Officer.

Source: Asian Development Bank records.

J a v a S e a B a n d a S e a

A r a f u r a S e a

I N D I A N O C E A N

S o u t h C h i n a S e a

P A C I F I C O C E A N

C e l e b e s S e a

JAKARTA

Bandung

Serang

Denpasar Mataram

Kupang

Makassar

Mamuju

KendariAmbon

ManokwariPalu

ManadoGorontalo

Ternate

Jayapura

Pontianak

Palangkaraya

Banjarmasin

Samarinda

Banda Aceh

Medan

Pekanbaru

Padang

Jambi

BengkuluPalembang

Pangkal Pinang

Bandar Lampung

Surabaya

Semarang

Yogyakarta

BANGKA-BELITUNG

NANGGROE ACEHDARUSSALAM

NORTH SUMATRA

RIAU

WEST SUMATRA

JAMBI

BENGKULUSOUTH SUMATRA

LAMPUNG

WEST JAVABANTEN CENTRALJAVA

BALI

WEST NUSATENGGARA

EAST NUSATENGGARA

SOUTHSULAWESI

WESTSULAWESI

SOUTHEASTSULAWESI

CENTRAL SULAWESI

SOUTHKALIMANTAN

CENTRALKALIMANTAN

WESTKALIMANTAN

EAST KALIMANTAN

EAST JAVA

YOGYAKARTA

GORONTALO

NORTHSULAWESI

NORTH MALUKU

MALUKU

WEST IRIAN JAYA

PAPUA

TIMOR

SERAM

HALMAHERABANGKA

BELITUNG

FLORES

SUMBA

BALI LOMBOK

SUMBAWA

SULAWESI

P A P U A

KALIMANTAN

JAVA

SUMATRA

TIMOR-LESTE

MALAYSIA

BRUNEI DARUSSALAM

PA

PU

A N

EW

GU

INE

A

Project Area

National Capital

Provincial Capital

Provincial Boundary

International Boundary

Boundaries are not necessarily authoritative.

I N D O N E S I A

CORAL REEF REHABILITATION AND MANAGEMENT PROJECT PHASE I

0 200 400 600

Kilometers

N

05

-16

57

RM

vi

0o 0o

130 00'Eo

130 00'Eo110 00'Eo

110 00'Eo

10 00'So10 00'So

10 00'No10 00'No

I. PROJECT DESCRIPTION 1. On 26 March 1998, the Asian Development Bank (ADB) approved a technical assistance loan of $7 million to the Government of Indonesia for the Coral Reef Rehabilitation and Management Project (COREMAP or the Project). The main objective of COREMAP1 was to establish a viable framework for a national coral reef management system in Indonesia. 2. To achieve this objective, the Project included three components:

(i) Coral Reef Research, Training, Information, and Monitoring System. This component established or strengthened coral reef information and training centers (CRITCs) in Jakarta, Pekanbaru, Ambon, Kupang, and Ujung Pandang.

(ii) Community-Based Management and Surveillance. This component provided the support structures and the necessary skills and resources that allowed communities in one pilot site in Riau province to develop and implement coral reef management plans.

(iii) Design of Proposed COREMAP II. This component prepared a design

document and conducted a feasibility study of the proposed COREMAP II. 3. As provided under ADB’s technical assistance loan, part of the consulting services for the COREMAP II feasibility study were funded with a $250,000 grant from ADB.2 4. The Indonesia Institute of Sciences (LIPI) was the Executing Agency (EA). To assist LIPI in technical management and administration, a project management office (PMO) was set up in Jakarta. In the provinces and districts, project management was carried out by interagency working groups (Pokjas) coordinated by the provincial or district planning agency (BAPPEDA). 5. The loan took effect on 6 August 1998 and was closed on 22 December 2003. The final loan amount was $6.62 million. At the request of the Government, the unused loan balance of $0.38 million was canceled in two tranches: $0.24 million was canceled on 07 August 2002 and $0.15 million was canceled at project completion in December 2003.

II. EVALUATION OF DESIGN AND IMPLEMENTATION A. Relevance of Design and Formulation 6. Consistent with the Government’s objective of achieving the sustainable management of Indonesia’s marine and coastal resources, COREMAP was to address the serious problem of coral reef degradation throughout the country. At the time the Project was conceived in 1995, less than 30% of the coral reefs were in good to excellent condition, according to nationwide surveys by LIPI. Indonesia’s coral reefs form the key ecosystem on which most of the coastal 1 The Project formed part of a 15-year government program supported by ADB and other donors. Parallel financing

for COREMAP I was provided by the World Bank (WB), the Global Environment Facility (GEF), and the Australian Agency for International Development (AusAID). In the first phase (1998–2002) these donors had a combined investment of about $23 million and the Government invested about $8 million. ADB funded activities in Riau, WB/GEF supported activities in South Sulawesi and Irian Jaya, and AusAID financed activities in Nusa Tenggara Timur (NTT).

2 ADB. 1998. Technical Assistance to Indonesia for Coral Reef Rehabilitation and Management Project. Manila (TA 3001-INO: Coral Reef Rehabilitation and Management, Phase II).

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inhabitants rely for food, income generation, construction materials, and coastal protection. They are also of critical significance to science, education, pharmaceuticals, global conservation, and heritage. The coral reefs represent a valuable but deteriorating resource, and the Project provided the country with its first major opportunity to deal with the problem of degradation. COREMAP combined bottom-up community-based management (CBM) and top-down support in keeping with the Government’s strategy of developing in the local communities a strong awareness and commitment to sustainable fishing and the protection of the living resources on which they depend for their livelihood. The project design conformed to key policies of the National Strategy and Action Plan for Coral Reef Ecosystem Conservation and Management introduced in 1992, which are to (i) improve community awareness and participation, (ii) increase the coverage of marine conservation areas and improve the monitoring and management of existing areas, (iii) manage the exploitation of coral reef fisheries and ensure their sustainability, (iv) establish spatial planning and zoning to prevent overexploitation, (v) improve coordination among relevant agencies, and (vi) establish a coordinated program of research on coral reefs and associated ecosystems. 7. COREMAP also supported the Government’s five-year development plan for 2001–2005 (PROPENAS) to achieve economic recovery and strengthen the foundation for a sustainable and equitable democracy. It promoted the Government’s poverty reduction program, which gives priority to income generation in the coastal zone and small islands, particularly for small fisherfolk, as well as the decentralization of autonomy to the regions and the strengthening of farmer groups. The Project was envisaged as a pilot project to test whether a national sector strategy could be harmonized with local development programs. It provided for the full involvement of regional governments and local communities in planning, design, and implementation; developed their capability; and built a sense of ownership to make the completed activities and facilities more sustainable. 8. The Project directly supported ADB’s strategy of reducing poverty, ensuring the sustainable management and use of natural resources, and including social and environmental factors in its operations, as well as ADB’s fisheries policy, which involves (i) promoting the development of long-term sustainable fisheries management, (ii) building capacity for development and resource management, and (iii) creating and strengthening productive capacity, infrastructure, and services. 9. The project scope underwent no major change during implementation. Implementation was delayed by external and internal factors such as security problems in some project sites, the passage of the new Autonomy Law, and the creation of the Ministry of Marine Affairs and Fisheries (MMAF). Minor changes in implementation methods and organization during implementation were due to changes in disbursement procedures resulting from the regional autonomy and fiscal balance laws of 1999 and the subsequent reorganization of BAPPENAS. It appears that the regional governments and local communities were not given enough time to absorb the concept and methods of coral reef rehabilitation and management. B. Project Outputs 10. The Project achieved the appraisal targets. The project scope and achievements by component are summarized in Appendix 1.

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1. Coral Reef Research, Training, Information, and Monitoring System 11. The main objectives of this component were to (i) set up a local information, research, and training center to support the CBM initiatives; and (ii) run a national monitoring system to assess reef health and community welfare in target locations. Specifically, this component was intended to strengthen the design of the information database, specify and procure equipment, design and implement a project benefit monitoring and evaluation (BME) system and provide statistical data to management agencies and international monitoring groups, and design and implement a small program of research on priority issues. 12. The Project gave substantial technical support in system design and installation and in the establishment and operation of one national and four regional CRITCs; developed a computerized management information system; designed and pilot-tested a nationwide system for monitoring reef health and community welfare (BME system); and built capacity among CRITC staff to design and run the research and monitoring program. The central CRITC was established in Jakarta in April 2000 after the provincial and district CRITCs were set up in 1999. A manual and guidelines on coral reef monitoring, covering the organization structure, research and monitoring, data management, and information systems, were developed in 2001. CRITC’s central office has formed a documentation unit, and a bilingual Web site is now in operation. LIPI will disseminate all key CRITC and CBM documents, technical manuals, research data, and training materials for the use of agencies and other stakeholders in COREMAP II. 13. National and regional CRITCs, universities, government research institutions, and NGOs collected data on coral reefs and related ecosystems, and conducted several studies including reef base mapping and global information system (GIS)–assisted mapping of COREMAP sites. These studies led to some notable achievements, among them the use of satellite imagery and GIS to map coral reef size and distribution throughout Indonesia. Baseline studies were done on the ecology and socioeconomic conditions in the COREMAP sites and other possible sites for COREMAP II. The research activities as of the end of FY2003 are listed in Appendix 2. 14. The BME system established under the Project is now being used in COREMAP II. It provides data on reef health, community-based fisheries (fishing effort, catch, and catch per unit of effort), and the socioeconomic conditions in the COREMAP sites. The reef health monitoring system is based on standard methodology, permanent transects, and monitoring stations. Five BME field manuals on coral reef monitoring, fisheries monitoring and socioeconomic monitoring developed under the Project provide a strong baseline for monitoring in COREMAP II. However, the data collected in the field would have been more useful if the communities had been encouraged to participate more actively in data gathering and monitoring. A comprehensive field survey of the pilot sites should have been completed during project preparation to establish clear baseline information and realistic project targets for future operation and replication. 15. Training strengthened the coral reef research, monitoring, and management capacity of national and regional government officials and CRITC staff. Training courses in the establishment of standard base maps and the use of baseline survey techniques, among other topics, supported the development of the coral reef spatial information system (CRSIS). On-the-job training overseas in international data networking and marine park management was also successful. The training provided under the Project benefited local communities as well by increasing their knowledge and skills in fisheries, marine culture, financial management, and tourism management, besides boosting the participation of NGOs, universities, and the private sector through the CBM approach. (Appendix 3 shows the training activities conducted under the CBM program.) The training program helped change attitudes about the level of participation

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and commitment to the sustainable management of coral reefs. However, more effective coordination would have avoided an overlap with training activities financed by other donors. MMAF/PMO and LIPI/PIU will draw up a master training plan to avoid a similar overlap in COREMAP II.

2. Community-Based Management and Surveillance 16. This component was aimed at developing and testing a community-based coral reef management and surveillance program in a project site in Riau. The activities in this component involved (i) preparing CBM criteria and field manuals; (ii) conducting village socialization and needs assessment, as well as an assessment of the needed support; and (iii) formulating and implementing coral reef management plans (CRMPs). 17. Facilitators, technical assistance, training, and small grants provided under the Project empowered the communities to design and implement CRMPs and to develop alternative livelihoods and income-generating opportunities in support of enhanced reef resource management. Community-based reef resource management plans were adopted by the regional governments and integrated into district spatial plans and regulations for coastal resources management. An integrated approach was adopted to address environmental and social problems at the same time, and a balance was achieved between activities aimed purely at reef conservation and those targeting improvements in the quality of life of the communities. 18. CRMPs were developed and implemented in seven villages. With the help of CRITCs, 22 permanent sites for coral reef monitoring and management covering 40 hectares in seven villages were set up. A key feature of the CRMP process was the establishment of coral reef and mangrove sanctuaries in areas with at least 15–25% live coral cover and in close proximity to the villages so that they could be easily monitored. The CRMPs were flexible enough to allow planned programs to be tailored to the specific cultural, socioeconomic, and biophysical conditions in localities. The CRMPs are being replicated with equal success in other coastal villages in the country and are major building blocks of COREMAP II. However, as the coral reef management areas have been affected by sand mining and mangrove deforestation, broader ecosystem-based (area-specific) approach to coral reef and biodiversity conservation would be more effective than narrowly focused interventions at an isolated coral reef site. 19. The surveillance and monitoring of management sites was effective because the monitoring, control, and surveillance model used was suited to the local communities and was relatively simple and low-cost to operate. (In contrast, at the World Bank project site, the high-speed boats and radar system procured were found to be too expensive for the local governments and coastal communities to operate and maintain.) The villages are also including the Indonesian navy and coast guard in district committees to get their support in enforcing regulations among nonresidents. This approach maximizes the self-reliance and commitment of the villagers, minimizes cost, and is the most conducive to long-term organizational and financial sustainability. Effective community-based law enforcement has reduced illegal fishing and coral mining activities by more than 80% in the project areas. An effective radio communication system must also be developed to allow the timely involvement of the proper authorities in enforcement. 20. The Project hired the services of an NGO for social preparation and community development activities in seven villages in the project areas, to support community-based coral reef management and law enforcement, as well as livelihood development. Twenty-two community groups with 440 members, including women’s groups, were formed. Three types of

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community groups (production, conservation, and gender) were formed for management and livelihood development activities. Public awareness campaigns in the project sites increased community awareness by almost 80% and led to greater community participation 21. The Project provided village grants to support alternative income-generating activities (AIGAs) benefiting 5,500 people in the project sites. More than 70% of the beneficiaries of these grants were poor fisherfolk. The AIGAs included cage culture, crab fattening, marketing, and other land-based activities. The seed funds supporting the AIGAs are operational, and have doubled in size in most of the villages. However, the participation of the private sector in livelihood development would augment the operations of small-scale coastal fisherfolk and give them better access to markets for their catch.

3. Design of Proposed COREMAP II 22. A major part of the Project was designing and preparing COREMAP II. With significant inputs from the coral reef research, information, and monitoring program established by the Project, a feasibility study was prepared by consultants under an associated TA (para. 33). The design of this COREMAP II was appraised in July 2002 and the loan was approved on 6 December 2002. To address the flexibility constraints found in the first-phase approach, COREMAP II was designed to allow for considerable flexibility, taking into account the cultural, socioeconomic, and biophysical conditions in the various project sites.

C. Project Costs 23. At appraisal, the project cost was estimated at $12.00 million, comprising $4.70 million in foreign currency (including the TA grant of $250,000) and $7.30 million equivalent in local currency. ADB was to finance the entire foreign exchange cost, plus $2.55 million of the local currency cost, while the Government was to finance the remaining local currency cost of $4.75 million. The actual project cost at loan closing was $10.25 million, consisting of $4.30 million in foreign exchange costs and $5.95 million in local currency costs. ADB financed $6.86 million, comprising foreign exchange costs of $4.30 million and $2.56 million of the local currency costs. The Government covered the remaining $3.39 million. The net loan amount, after the unused loan balance was canceled, was $6.62 million. The net TA grant used was $243,000 and the unused $7,000 was canceled. The actual total project cost was lower than appraisal estimate in dollar equivalent terms primarily because of the local cost savings from the depreciation of the rupiah against the dollar. Tables A4.1 and A4.2 in Appendix 4 compare the appraisal and actual project costs by component. Table A4.3 shows loan utilization by category. D. Disbursements 24. The disbursement mechanism envisaged at appraisal followed ADB’s standard provision in the Loan Agreement. The Borrower was to make available, promptly as needed, the funds that were required in addition to the loan proceeds. The project design anticipated full loan disbursement within a little over 3 years. However, the loan closing was extended by 20 months, mainly to sustain the CBM in Riau project sites and partly to allow for the manpower shortage in the early stages resulting from government reorganization. 25. An imprest account was set up on 25 August 1998 with an initial advance of $700,000 from ADB. The imprest fund and statement of expenditures (SOE) procedures for reimbursement were generally considered effective in ensuring the flow of funds to the villages.

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The imprest account significantly offset the impact of the delayed release of funds by the Government at the start of implementation. E. Project Schedule 26. According to the implementation schedule at appraisal, the project works would be completed within 3 years from the date of loan effectiveness. The first year was to be devoted to (i) procuring equipment and building the capacity of the national and local governments to design and operate the coral reef monitoring system and the information and training center; and (ii) conducting social preparation activities and organizing the coastal communities and beneficiaries for coral reef management, with the assistance of the recruited NGO.. The second and third years were set aside for designing and operating the national and selected local coral reef monitoring system and information and training center, and collecting data and information, including identified sites for COREMAP II. The project implementation schedule at appraisal is compared with the actual schedule in Appendix 5. 27. Although the loan took effect on 6 August 1998, the Project was officially launched only in FY1999/2000 because of (i) predominantly external events including political and social problems in the country and project areas and the continued financial crisis from 1997to 1999, (ii) the creation and reorganization of the MMAF, and (iii) the devolution of power over natural resource management to the regions. Delays in finalizing the implementation details for CRITC and selecting the project consultants, and the initial unfamiliarity of the EA with ADB’s procurement procedures, further slowed down the implementation.

28. At the request of the Government, two loan extensions, totaling 20 months, were granted to allow the Project to be completed and the community-based coral reef management and livelihood development activities in the project site to be sustained. The first loan extension of 12 months was from 31 October 2001 to 31 October 2002. The second extension of 8 months, to 30 June 2003, was granted to accommodate the design of COREMAP II and intensified capacity-building and organizing work by the NGOs for project sustainability. F. Implementation Arrangements 29. The implementation arrangements were substantially as designed at appraisal. The Project was mainly administered and implemented by LIPI with the help of a consulting firm and NGOs. The arrangement, however, called for the full involvement of other relevant ministries and regional governments through the BAPPEDA. The national steering committee (NSC), led by BAPPENAS and supported by a technical committee, played a critical role in coordinating the implementation and effectively addressing specific policy and institutional issues that affected the progress of the Project. The NSC and the technical committee will continue to coordinate the activities begun by the Project in the participating agencies, and to assist in solving key issues related to the sustainability of the Project. After the creation of MMAF in 1999, its staff participated actively in the work of the technical committee and in project implementation. The project organization chart is in Appendix 9. 30. The implementation arrangements designed at the time of appraisal were appropriate. LIPI provided competent staff to take on the challenges of coordinating and pilot-testing the coral reef management activities in the field. The coordination among agencies and the regional governments was effective. However, laws and regulations were weakly enforced, and at times high-level government decisions were made without proper consultation with the local

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governments. Moreover, regional government agencies need to have a strategic approach and capacity to carry out their enhanced roles in natural resource management under Law 22/1999. G. Conditions and Covenants 31. Overall, the loan covenants in the Loan Agreement were realistic and appropriate, and were satisfactorily complied with (Appendix 6). However, delays occurred in (i) the design and operation of the coral reef monitoring and information system and BME system; (ii) the preparation of the national policy framework for coral reef management; and (iii) the submission of various project reports. H. Consultant Recruitment and Procurement 32. An international firm was hired to provide 76 person-months of international consulting services and 260 person-months of domestic consulting services. The consultants assisted in project implementation at the national and provincial levels by (i) designing a pilot CRSIS; (ii) developing a research, monitoring, and information system and establishing CRITCs in Jakarta and in the provinces of Papua (Padaido), East Nusa Tenggara (Maumere), Riau (Pekanbaru and Tanjung Pinang), and South Sulawesi (Makassar); (iii) preparing the technical specifications for equipment to be procured for the Project; (iv) preparing technical and training manuals and a training program; (v) conducting training in applied GIS, field survey techniques, and other topics; (vi) designing and running a BME system; (vii) defining and zoning a proposed marine protected area (MPA) in Senayang-Lingga; (viii) contracting an NGO to help implement the CBM program in Riau; and (ix) preparing the proposed COREMAP II Project in Riau, North Sumatra, and West Sumatra. 33. The consultants were fielded in March 1999 and completed their services by November 2002. With the extensions in project implementation, the services of some experts, including the coral reef management specialist and the database and information specialist, were also extended, as were the services of the NGO subcontracted by the main consultant. The extension was to allow the completion of the technical manual and program for coral reef monitoring and other training activities. The Project used a total of 95.5 person-months of international consulting services and 303.5 person-months of domestic consulting services. The consulting services schedule is in Appendix 7. 34. No civil work contracts were awarded under the Project. All supplies and equipment for the Project were procured according to ADB’s Guidelines for Procurement. Vehicles and major items of equipment (e.g., patrol boats and computers) were procured through international shopping. Some small supply contracts within ADB’s direct-purchase ceiling had to be tendered using the Government’s standard local competitive bidding procedures. The vehicles, patrol boats, and equipment procured for the Project are listed in Appendix 8. I. Performance of Consultants, Contractors, and Suppliers 35. The international consulting firm generally performed satisfactorily. The consultants assisted the PMO and the local communities in (i) preparing all types of technical and training manuals and programs; (ii) designing, running, and expanding the BME system and the CRITC program; (iii) implementing the CBM program in Riau province; and (v) conducting the necessary training. In the field, the contracted field facilitators/NGOs assisted the district governments and local communities in social preparation and in community-based coral reef management and livelihood development. In general, the project consultants accomplished their

8

assignments effectively. As arranged, ADB also directly appointed a coral reef management specialist for the design of COREMAP II. The COREMAP II design phase underscored the need to provide enough time and consulting staff resources to design to ensure project quality. The time allotted for the design of COREMAP I was considered adequate in view of the smaller scope and area coverage of that project. 36. According to the LIPI/PMO and field implementers in Riau, the project consultants did excellent work in preparing the technical manuals, conducting technical training, and disseminating important knowledge about coral reef assessment and management to the national government staff and local communities. However, the NGO subcontracted by the consulting firm had too short a contract period to help the community become fully knowledgeable about coral reef protection and sustainable livelihood management. The NGO could have done better had the contract period been longer. J. Performance of the Borrower and the Executing Agency 37. The Borrower and the EA performed satisfactorily, despite the financial crisis in which the country found itself at the start of project implementation. The NSC and the PMO were well established before the loan took effect. As a result, (i) NSC coordination was effective and it was able to address the Project’s policy, institutional, and technical issues in a timely manner; and (ii) key project staff were appointed on time and excellent project facilities were provided as stipulated in the Loan Agreement and covenants. From 2002, the Government was able to provide enough counterpart funds to support the project activities. In 1999, the decentralization of natural resource management authority and the creation of MMAF further strengthened the implementation and completion of the Project. The completion of COREMAP II processing showed the Government’s commitment to ensuring sound natural resource management and assuming a dynamic role in coastal community development. A weakness of the EA was the low technical capacity of staff to implement the Project on a wider scale, despite the substantial capacity-building activities under the Project. These weaknesses can be attributed to the budgetary constraints of the Government. K. Performance of the Asian Development Bank 38. ADB consistently provided timely advice and assistance during project implementation, monitoring the Project closely from the start, fielding an inception mission and five regular project review missions, including an intensive midterm review in October–November 2000, and taking the initiative to solve implementation problems and meet the needs of the Project. ADB acted promptly on project contracts, requests, and proposals for changes in scope, reallocation of the loan, and extension of the loan closing date.

III. EVALUATION OF PERFORMANCE A. Relevance 39. As mentioned in Section IIA, the Project was and is still highly relevant to ADB’s country strategy and the Government’s development objectives. Its integrated approach to fisheries development is relevant to the Government’s and ADB’s objectives of increasing productivity and household incomes, conserving and protecting natural resources, and developing community groups that are self-sustaining and self-reliant enough to improve their quality of life.

9

B. Efficacy in Achievement of Purpose 40. The Project clearly achieved its immediate objective of establishing a viable framework for a national coral reef management system in Indonesia. COREMAP successfully developed and established a comprehensive framework and national policy for coral reef management; appropriate monitoring, control, and surveillance systems; a public awareness campaign and training programs; and supporting research. Specifically, the Project led to (i) a very high level of community involvement in coral reef resource management in the project areas, resulting in a significant reduction, by more than 50% in some cases, in illegal and destructive fishing and coral mining in most of the project sites; (ii) greater public awareness of the importance of coral reef resource management; and (iii) stronger political will and legal support for coastal resource management and poverty reduction at all levels of government. The success of COREMAP led to the approval of the loan for the second phase of the Project, which is being satisfactorily implemented. Overall, the Project effectively met its objectives. C. Efficiency in Achievement of Outputs and Purpose 41. The pilot site under the Project showed the success of the participatory approach in promoting sustainable coastal and marine resource management. The formulation of a national coral reef policy and supporting strategy significantly improved the environment for resource management and project implementation, and provided a solid base for COREMAP II. The two loan extensions totaling 20 months suggest a partially efficient process, but the investment was highly efficient, as the success of the COREMAP pilot site and of the current implementation of COREMAP II indicate. The Project is therefore ranked as efficient in achieving its outputs and objective. D. Preliminary Assessment of Sustainability 42. The CRITCs were established to support the coral reef rehabilitation and management efforts with coral reef research, training, information, and monitoring systems. Data and information generated by the CRITCs are increasingly being used by various agencies for different purposes, specifically for planning and conservation activities. The national and regional governments are showing their strong commitment to the continued operation of the CRITCs by providing adequate annual budgets and proper operation and maintenance (O&M) facilities, and by hiring more competent staff and training them to run the CRITCs and participate in their activities. With this government commitment in place, the CRITCs can be deemed sustainable in the long term. The marine management areas and the coral reef conservation and income-generating activities established in Riau under the Project are being managed and operated effectively by local communities with the help of the regional governments and NGOs. The further commitment of the national and regional governments through COREMAP II, a 6-year program, will ensure the sustainability of these facilities and activities. At the completion of COREMAP II, all management areas and income-generating activities established under COREMAP I are expected to reach a sustainable level. The Project’s benefits as originally envisaged are therefore likely to be sustainable overall. E. Environmental, Sociocultural, and Other Impacts 43. The Project showed that a community-based approach to sustainable coral reef management can succeed, paving the way for a larger intervention, COREMAP II. The Project had an impact on institutional and human resource development, the environment/ecology, society, and economics. The results of the Project showed that the Project successfully

10

developed and established a comprehensive framework and national policy for coral reef management and environmental conservation, as well as supporting systems for MCS, public awareness and information, training, and research, which will, in turn, guide and assist implementation. The Project has contributed to the country’s overall effort to manage and use its coastal resources in a sustainable manner and reduce poverty. Specifically, the various areas on which the Project has had an impact indicate that (i) the very high degree of involvement of communities in coral reef resource management in the project areas has reduced illegal and destructive fishing and coral mining in those areas by more than 80% in some cases and increased in coral reef recovery by 6–8%;3 (ii) education and information campaigns have made the public much more aware of the importance of coral reef resource management; and (iii) political will and legal support for coastal resource management and social development have increased at all levels of government. Some local governments outside the project areas have also adopted the project approach and initiated similar CBM programs to involve coastal communities in coral reef management. Overall, perhaps the most readily felt impact of the Project has been the improvement in resource and living conditions of the coastal population in the host environments. 44. The Project’s community-based participatory strategy precluded the application of ADB’s involuntary resettlement policy. ADB’s Policy on Indigenous Peoples was issued after Project was approved. However, the project area is mostly peopled by Malays, who do not fall within the indigenous peoples group as defined in the Policy.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 45. The Project met its physical targets and achieved its immediate development objective of establishing a viable framework for national coral reef management system in Indonesia. The Project also accomplished the three major tasks of (i) establishing CRTICs in five locations, (ii) implementing pilot community-based coral reef management and surveillance systems in seven villages in Riau, and (iii) designing the proposed COREMAP II. All the facilities, equipment, and activities begun and established by the Project, such as the CRTIC facilities, marine management areas, and income-generating activities, are generally in good condition and are being well run and maintained by government and local communities. Hence, on the basis of the Project Performance Rating Assessment criteria, the Project is rated as successful. 46. The Project succeeded harmonizing national sector strategies and policies with local development programs largely because of the full involvement of regional governments and local communities in project planning, design, and implementation and the sense of local ownership such involvement and participation generated. The information and education program made local communities more aware of the local benefits of natural resources management and helped mobilize support for the Project.

3 Regional PMO-Riau prepared the report in 2003 (CRITC-COREMAP Riau. 2003. Regional Coral Reef Survey

Report, Regional PMO-Riau in 2003. Indonesia.). The post-project coral reef health survey report was prepared by project survey team in 2001 in Riau using Line Intercept Transect (LIT) method. (CRITC-COREMAP Riau. 2001. Post-Project Coral Reef Health Survey Report in 2001 in Riau. Indonesia.)

11

B. Lessons Learned 47. The following lessons can be drawn from the project implementation experience and a review of relevant project documents:

(i) Natural resource management programs are more likely to succeed if regional governments and local communities are fully involved in planning, design, and implementation;

(ii) Education and information campaigns are effective ways of increasing the

awareness of the various stakeholders in coastal resource management and development, including coral reef management;

(iii) Regional government agencies must become better able to carry out their larger

responsibilities in natural resource management under Law 22/1999;; (iv) A comprehensive field survey of the pilot sites must be completed during project

preparation to establish clear baseline information and realistic project targets for future operation and replication;

(v) An integrated approach that addresses both environmental and social concerns

is more effective in coral reef management than activities aimed purely at conservation;

(vi) A broader ecosystem-based (area-specific) approach to addressing coral reef

and biodiversity conservation issues is more effective than narrowly focused interventions at an isolated coral reef site;

(vii) CRITC and MCS equipment and methods should be of the lowest practicable

level of sophistication and cost, commensurate with their objectives; if expensive equipment is necessary, selection should be based primarily on ease of use and maintenance; and

(viii) Private sector participation can augment the operations of small-scale coastal

fisherfolk and give them better access to markets for their catch. C. Recommendations

1. Project-Related 48. Project-related recommendations are as follows:

(i) The national steering committee and technical committees should continue to meet regularly to coordinate the activities begun by the Project among the participating agencies and assist in solving key issues related to project sustainability;

(ii) With the devolution of resource management responsibility to the regions, district

governments will need to create their own task forces with dedicated staff and management responsibilities to ensure the effective coordination of coral reef rehabilitation and management in the regions;

12

(iii) CRITC and MCS data collection should be limited to data that are vital to achieving COREMAP objectives; villagers should be allowed (through appropriately amended procedures) to participate in data collection and to provide information that can be used in coral reef management;

(iv) LIPI should properly document, prepare, and disseminate all key CRITC and

community-based management documents, technical manuals, research outcomes, and training materials for the use of the agencies and other stakeholders in COREMAP II;

(v) LIPI, MMAF, and participating regional governments should continue to provide

adequate counterpart budgets to maintain and operate systems and facilities established by the Project and to support community organizations and CBM activities; CBM should be recognized as the core component integrating all the other components at the community level;

(vi) Public communication activities should be maintained as a national program

targeting key stakeholders such as enforcement agencies and allowing the development of more local knowledge in COREMAP sites; and

(vii) All training activities in COREMAP II should be integrated and coordinated by a

small national training unit, which will assist the various regional units in planning their training activities and also organize specialized training that cuts across many locations, while strengthening and gradually shifting more responsibility to the regional units; and

(viii) ADB may conduct a Project performance audit review in 2008. 2. General

49. General recommendations from implementation of the Project are:

(i) Community-based projects must be designed to ensure the full participation of all stakeholders to develop a sense of ownership and enhance the sustainability of the completed facilities and activities, and site-specific activities should focus on definable outcomes; more attention therefore needs to be paid in project design to the issue of adaptive management and monitoring to ensure accountability and effective use of resources;

(ii) Social preparation and community organization are the key to sustainability and

should therefore always be a major activity in project design, allotted enough time and other resources and implemented by professional and time-tested organizations or social experts; and

(iii) In livelihood development, the private sector can play an important role in giving

coastal communities better access to markets for their products.

Appendix 1 13

PROJECT FRAMEWORK

Design Summary Targets Monitoring Mechanisms Assumptions and Risks Goal: To protect, rehabilitate, and achieve sustainable use of coral reefs and associated ecosystems in Indonesia, which will, in turn, enhance the welfare of coastal communities

Ecological: Coral mortality index (CMI) decreasing by 1% per year at 10% of randomly chosen national transects

National reef monitoring program

Experience from the pilot phase will be sufficiently promising to embark on a longer-term program, which will, in turn, result in sustainable use of coral reefs

Socioeconomic: 5% yearly increase in per capita income of coastal communities

National economic statistics

Purpose: To establish a viable framework for a national coral reef management system in Indonesia

National: Endorsement and acceptance of national COREMAP framework by DKN and major stakeholders

Project completion report The three-year program for COREMAP I will demonstrate a viable framework for subsequent effective investment in coral reef management

Site: Increasing compliance rate (number of patrol days without violation/total patrol days) in pilot sites

Project completion report

Outputs: 1. Strengthened

institutional and project management arrangements

Institutional capacity evaluated as sufficiently improved to allow expansion of COREMAP

Project completion report, annual reports, training assessment, and skills assessment after training

Effective coordination can mitigate the lack of a specific institution with a mandate for coral reef management

2. Site-level coral reef surveillance model tested and evaluated as part of community-based management

Positive trend in compliance index at end of year 3

Surveillance and enforcement reports from pilot sites

Government is committed to empowering communities and enforcing laws protecting coral reefs

3. National research, information, and monitoring system established to support coral reef management

Database in BAPPEDA and applied research results generating useful data for planning and management

Metadata catalog on the Internet, published research results, and management plans

Improved information on coral reef is needed to strengthen management program

4. Pilot community-based management plan for one site designed and tested

Community-based management plan accepted by the project management office (PMO) and at least one year’s planned interventions completed

Community-based management plan, progress reports, and supervision missions

Pilot site is representative of the range of coral reef conditions in Sumatra

5. Design of COREMAP II completed

Draft project implementation plan for COREMAP II completed

Project completion report and draft project implementation plan (PIP)

Enough progress is made in COREMAP I to justify proceeding with COREMAP II

Activities: Component 1 – Project Management and Institutional Strengthening

1.1. Prepare terms of reference (TOR) for project team and contract packages for

Clear TOR for project staff and consultants

TOR and draft contracts prepared by PMO

Advance action will be undertaken to avoid delays in TA recruitment

14 Appendix 1

Design Summary Targets Monitoring Mechanisms Assumptions and Risks consultants

1.2. Assign and mobilize

full-time counterpart staff

Adequate counterpart staff at all levels with defined performance goals

SKs (decrees) prepared for each level of project involvement

Counterpart staff will actually work nearly full-time

1.3. Furnish office and procure equipment for secretariat and PMO

Office and equipment adequate for project activities

Procurement records and annual inventory of project assets

Indonesian Institute of Sciences (LIPI) building will be completed and ready for occupancy

1.4. Contract and mobilize consultants

Consultants mobilized on schedule

Consultants’ contracts and project implementation plan

Contracts are prepared before loan takes effect

1.5. Prepare project accounts and reports

Accounting and reporting meets the needs of the Government and ADB

Quarterly and annual reports, midterm review

Common reporting formats are prepared

1.6. Guide and monitor project performance

Benefit monitoring and evaluation (BME) baseline and progress monitoring

BME design report, quarterly and annual reports by PMO

BME indicators are adequate for monitoring progress

1.7. Assess current staff strengths and human resources development (HRD) needs

Training needs assessment completed

AusAID training mission report, PIP, and other reports

Cooperation of other agencies is needed for project tasks

1.8. Design and begin capacity-building program

Training carried out at all levels according to PIP schedule

Training reports, quarterly and annual reports

Staff can be released from current duties to attend training

1.9. Carry out training workshops, cross visits, and comparative studies

Workshops, seminars, study tours, and cross visits undertaken as planned

Training reports, quarterly and annual reports

Trained staff continue to be involved in COREMAP

1.10. Coordinate programs of implementing agencies

Inputs provided as and when needed

PIP, memorandum of understanding (MOU), quarterly and annual reports

Implementing agencies (IAs) follow MOU prepared by PMO and agree to cooperate

Activities: Component 2 –Database Monitoring and Applied Research

2.1. Strengthen the design of the information database design

Database designed and implemented in three BAPPEDA offices and LIPI in Jakarta and Ambon

Reports from the database useful for management decisions

Some of the relevant information exists in various databases

2.2. Specify and procure equipment

Hardware and software procured

Procurement records Additional equipment is needed in the CRITCs

2.3. Design and implement the project BME system and link it with the database

BME baseline data and monitoring data reported for at least four provinces

Quarterly and annual progress reports

Some data are common to BME and long-term monitoring of coral reefs

2.4. Provide statistical data to management agencies and international monitoring groups

Indonesian data contributed to reef base and provincial database

Reef-based CD-ROM and Global Network records, provincial data center metadata

COREMAP will be Indonesia’s main reef-monitoring activity; COREMAP data will be stored In PDCs

2.5. Prepare for International Coral Reef Symposium in Bali in year 2000

Symposium is a forum for release of intern results from COREMAP

Symposium proceeding COREMAP can report success to ICRS

2.6. Design and implement a small research grants program on priority research issues

Up to 10 research grants awarded each year and results published in reputable journals

Research proposals accepted, journal article published as a result of COREMAP

Basic research will not be carried out as part of the Project; LIPI can effectively allocate funds

Appendix 1 15

Design Summary Targets Monitoring Mechanisms Assumptions and Risks 3.1. Develop community-based management (CBM) criteria and field manuals

Field manuals produced and released by PMO

Field manuals, case studies

Field managers and motivators need some standard approaches to CBM

3.2. Select, train, and deploy village motivators

Trained village motivators appointed in all priority villages

Quarterly and annual progress reports

Field motivators will need training and technical support

3.3. Conduct village socialization and needs assessment and assessment of support needs

At least one community group in each village working with COREMAP program

Quarterly and annual progress reports, field supervision, monthly reports from FMs

Most villages will meet to form new community groups and will need to be motivated

3.4. Produce location management plan for pilot site

Coral reef management plan drafted for Riau pilot site

Draft coral reef management plan

Community-based plan preparation will create cohesion and a sense of ownership in reef management

3.5. Formalize and implement location management plan

Draft plan accepted by local governments for implementation; key plan components started

Coral reef management plan, FMs’ monthly reports and progress reports

Coral reef management plan will not conflict with other development plans for the area

3.6. Progressively evaluate and disseminate lessons learned

Lessons learned documented on Internet and in newsletter

Web pages and newsletter, annual and quarterly reports

Sufficient progress will be made in 3 years to identify key lessons

3.7. Establish a motivators’ network and cross visits

All motivators will have visited at least one other site

Monthly, quarterly, and annual reports

Motivators will benefit from sharing project experiences

3.8. Develop a surveillance framework for coral reef protection, and test in pilot site

Framework accepted by provincial and district agencies; compliance index increased

Quarterly and annual reports, monitoring of compliance index

Community reef watchers will be prepared to report illegal activities

4.1. Complete ecological and social assessment of potential sites

Consistent ecological and social assessment available for all sites

Ecological and social assessment reports

Agreement is reached on which sites to include in COREMAP II

4.2. Collect data on community organizations in COREMAP II sites

Data on community organizations available at appraisal

Report on community organizations in target villages

Community organizations will be willing to participate in COREMAP II

4.3. Select and train village motivators

By start of COREMAP II, village motivators operating in all target villages

Reports from working groups in COREMAP II provinces

This will partly be funded by a separate government project

4.4. Prepare project completion reports and document lesson learned.

Project completion report within 3 months of completion date

Project completion report Adequate BME data exist to document lesson learned

4.5. Prepare design of COREMAP II.

Acceptable project implementation plan

Project implementation plan

Sufficient success in COREMAP I to justify donor involvement in COREMAP II

4.6. Conduct appraisal of COREMAP II

Joint aid agency appraisal mission

Aide Memoire, appraisal report

-

AusAID – Australian Agency for International Development; BAPPEDA – provincial/district planning agency; CBM – community-based management; COREMAP – Coral Reef Rehabilitation and Management Project; CRITC - coral reef information and training centers; DKN – National Maritime Council; FM – field manager; ICRS – International Coral Reef Symposium; PIP – project implementation plan; PMO – project management office Source: Asian Development Bank

16 Appendix 2

CORAL REEF RESEARCH, TRAINING, INFORMATION, AND MONITORING SYSTEM COMPONENT

Table A2.1: List of Survey and Research Activities

No Title of Research Provider Status Duration Jakarta (National) 1. Study and Strategy of Alternative Income-

Generating Activities Towards Destructive Fishing on Coral Reef

Centre for Agribusiness Development

Completed 10 months

2. Coral Reef Mapping of Indonesia by Using Data of Remote Sensing and GIS (Marine Waters of Kalimantan and Maluku)

Institute of National Aerospace―LAPAN

Completed 3 years

3. Baseline Study of the Ecology of Wakatobi National CRITC Completed 6 months 4. Baseline Study of Social Economic of Wakatobi National CRITC Completed 12 months 5. Baseline Study of the Ecology of Rajaampat National CRITC Completed 6 months 6. Baseline study of Social Economic of

Rajaampat National CRITC Completed 12 months

7. Baseline Study of Ecology of Spermonde Coral Reef Study Centre―UNHAS

Completed 6 months

8. Baseline Study of Social Economic of Spermonde and Sinjai

Provincial Task Force South Sulawesi

Completed 6 months

9. Baseline Study of Ecology of Sipora Island, Mentawai

Posteri Completed 3 months

10. Baseline Study of Social Economic of Sipora Island, Mentawai

Posteri Completed 3 months

11. Baseline Study of Ecology of Bunguran, Galang, Tambelan

CRITC Riau Completed 6 months

12. Baseline Study of Social Economic of Bunguran, Galang, Tambelan

CRITC Riau Completed 6 months

13. Studies on Mitigation of Environmental Impact to Reefs in Senayang-Lingga, Province of Riau

Geotek-Bandung Completed 6 months

14. Investigation on Environmental Education Through COREMAP Activities

CRITC Nasional Completed 12 months

15. Study on Cyanide at Coral Reef Community CRITC Nasional Completed 12 months 16. Well Proven Technology COREMAP Completed 12 months 17. AIGA marketing studies COREMAP Completed 12 months 18. Sediment Influence from River Mouth to the

Coral Reef Ecosystem at Teluk Ratai, Lampung Bay, Lampung

Limnologi LIPI Completed 3 months

19. Baseline Study on Unsustainable Fishing Practices in Spermonde Islands, Province of South Sulawesi

Destructive Fishing Watch Completed 3 months

20.

Survey on Species and Distribution of Corals in the Framework of COREMAP Database Development

CRITC Nasional Completed 3 months

21. Coral Reef Distribution in Photography CRITC Nasional Completed 3 months 22. Studies on Connectivity of Seagrass and Coral

Reef Ecosystem at Bitung Waters (Lembe Bay) CRITC Nasional Completed 6 months

23. Reef I and II Biak CRITC Nasional and Biak Completed 3 months 24. Reef Health II in South Sulawesi National CRITC and South

Sulawesi CRITC Completed 3 months

25. Studies on Environmental (Marine) Education at School

Research Centre for Population LIPI

Completed 6 months

26. Institutional Framework Bogor Institute of Agriculture/ Study Centre for Marine and

Coastal Resources

Completed 6 months

27. Study on Development of Standardization BME Reporting and Linkages

Bogor Institute of Agriculture/ Study Centre for Marine and

Coastal Resources

Completed 6 months

Appendix 2 17

No Title of Research Provider Status Duration South Sulawesi 28. Study on Biological, Chemical, and Physical

Parameters of Takabonerate National Park Indonesia Marine

Conservation Foundation Completed 3 months

29. Study on Economic Evaluation of the Coral Reef Resources in Takabonerate

Lanra Link Foundation Completed 6 months

30. Study on Marine Culture Technology in Takabonerate

Matirotasi Foundation

Completed 6 months

31. Study on Ecotourism and Accessibility in Takabonerate

LOPI-ECN Completed 5 months

32. Study on Intensive Islamic Promotion Model in Alleviating Community Awareness in Takabonerate

Melania Foundation

Completed 6 months

33. Study on Local Wisdom to Support Community-Based Coral Reef Conservation in Takabonerate

UNHAS

Completed 4 months

34. Study on Increasing Women Role in a Way to Alleviate Poverty in Takabonerate Marine Park

Mawaddah Wa Rahmah Foundation

Completed 6 months

35. Perception on the Selayar Community (including Takabonerate) in Community-Based Law Enforcement

LBH-Perbindo

Completed 6 months

36. Study on the Marketing Web of Marine Fishery Products in Takabonerate

UNHAS Completed 6 months

37. Study on the Management of Alternative Income Activity in Takabonerate

Wapelhum Foundation Completed 6 months

38. Comprehensive Study on the Resource Management Model of Marine Products in Relation with Maritime District

Melania Foundation Completed 6 months

Riau 39. Study on the Development of Institution in the

Coastal and Island Fisheries Community LBA UNRI Completed 6 months

40. Investigation on the Alternative Income (Excluding Fishing) at Senayang and Lingga Subdistricts

P3MSP – UNRI Completed 3 months

41. Marketing Strategy for Fishery Commodities Through Investigating the “Tauke” and Partnership System at Senayang and Lingga

UNRI

Completed 3 months

42. The Impact of Fishing Gears to Coral Reef Resources and Alternative Gear Design at Senayang and Lingga

UNRI Completed 12 months

East Nusa Tenggara (NTT) 43. Identification of Activities and Destructive and

Effort to Manage Coral Reef Ecosystem in Maumere Bay

NTT Consortium Completed 6 months

44. Identification of Type and Condition of Coral Reef Ecosystem in Maumere Bay

NTT Consortium

Completed 6 months

45. Revitalization and Reviving local Community Wisdom in NTT in Relation to Mangrove and Coral Reef Conservation

NTT Consortium

Completed 6 months

46. Public Awareness Campaign on the Importance of Coral Reef Ecosystem Through Biblical Teaching in Kupang

NTT Consortium

Completed 6 months

Biak 47. The Impact of Marine Ecotourism to Community

Income in Padaido Islands and East Biak Biakonia Gloria Foundation

Completed 6 months

AIGA – alternative income-generating activity; COREMAP – Coral Reef Rehabilitation and Management Project; CRITC - coral reef information and training center, LBHI-Perbindo – Legal Aid Society, Indonesia Labor and Empowerment; LOPI-ECN – Environmental Cooperative Network; LBA-UNRI – Laboratory of Business Administration, University of Riau; P3MSP-UNRI – Centre for Research and Community Development of River and Coastal Community, University of Riau; UNHAS – University of Hassanuddin; UNRI – University of Riau Source: Indonesian Institute of Sciences (LIPI)

18 Appendix 2

Table A2.2: CRITC Activities, COREMAP 2002–2003 Makassar, South Sulawesi, Takabonerate

Title Location Date Days

Media Publication for Development of CRITC Program Makassar October 2002 1

Training on Small Scale and Mid Scale Business Makassar November 2002 15

Data Inventory and Update Makassar November 2002 1

Internal CRITC Workshops on Institutional Empowerment Makassar December 2002 1

Workshops on COREMAP Phase II Design Makassar January 2003 4

Destructive Watch Consultation Makassar February 2003 1

Workshops on COREMAP Phase II Design, Pangkep–Selayar Pangkep March 2003 4

Marine NGO Mediation for COREMAP Phase II Initiation Makassar March 2003 1

CRITC - coral reef information and training center, COREMAP – Coral Reef Rehabilitation and Management; NGO - nongovernment organization; TBR Takabonerate Source: Indonesian Institute of Sciences (LIPI).

Table A2.3: CRITC Activities, COREMAP 2002–2003 Biak, Papua Title Location Date Days

Socialization Workshop Jakarta 16–21 December 2002 6

Workshop Related to the Design of COREMAP Phase II Pulau Pai/Biak 27–29 March 2003 3

Conduct of a Survey on Reef Health Kepulauan Padaido 2–10 May 2003 9

Training on Expeditious Technology Implementation Biak 4–7 June 2003 4

Marketing studies Biak 19–23 June 2003 5

CRITC - coral reef information and training center; COREMAP – Coral Reef Rehabilitation and Management Project Source: Indonesian Institute of Sciences (LIPI)

Appendix 2 19

Table A2.4: List of Training Activities Activities Location Status A. In-Country Training

1. Fish culture on-the-job training in Bali; 9 participants from Kepulauan Riau, Selayar, and Biak

Jakarta Completed

2. Tourism Resort Management in Seribu Islands; 12 participants from Kepulauan Riau, Selayar, Biak, and Sikka (May 2003)

Jakarta Completed

3. Processing on Marine Product/Post Harvest Technology at LIPI Office Subang-West Java; 12 participants from Kepulauan Riau, Selayar, Biak, and Sikka

Jakarta Completed

4. A 3-day workshop in Jakarta on “Lessons Learnt in Coral Reef Management”; a number of representatives from the national and district CRITCs, research organizations, NGOs, and other stakeholders attended the workshop and discussed related issues in working groups (June 2003)

Jakarta Completed

B. Overseas Training 1. Reef base and data networking in ICLARM, Malaysia; 7

participants from National CRITC and MMAF (April 2003) Jakarta Completed

2. On-the-job training on Protected Area/Marine Parks Management in Malaysia; 2 participants from National CRITC and MCS/National Park (May/June 2003)

Jakarta Completed

3. Training on Marine Park Management in Townsville–Australia; 9 participants from CRITC (National, Biak, and Sikka) and MMAF (June 2003)

Townsville Completed

4. Training/Fellowships in Wollongong University for 6 students from PMO staff, LIPI central office, BAPPENAS, SME (LH), CRITC South Sulawesi

Wollongong Completed

BAPPENAS – National Development Planning Agency; ICLARM - International Center for Living Aquatic Resource Management, Inc. (now WorldFish Center); LIPI - Indonesian Institute of Sciences; MCS – monitoring, control and surveillance; MMAF – Ministry of Marine Affairs and Fisheries; NGO - nongovernment organization; SME – small and medium enterprise Source: Indonesian Institute of Sciences (LIPI).

20 Appendix 2

Table A2.5: Training Workshops for Coral Reef Spatial Information System Development Item

Period

Location

Trainees

Responsible Agency

Rapid Reef Assessment Workshop, Phase I (survey design)

23–28 August 1999

CRITC Jakarta

13 from CRITC Riau, CRITC Jakarta, and P3O–LIPI

AMSAT

Rapid Reef Assessment Workshop, Phase II (fieldwork training)

6–28 September 1999

Kec. Senayang–Lingga, Riau

7 trainees from CRITC Riau and P3O–LIPI

AMSAT

Rapid Reef Assessment Workshop, Phase III (post survey analysis and reporting)

25 November–4 December 1999

CRITC Jakarta

12 trainees from CRITC Riau, Central CRITC, and P3O–LIPI

AMSAT

Introductory GIS-Remote Sensing Training Course for Reef Base Map Production

13–18 December 1999

CRITC Jakarta

10 trainees from CRITC Sulsel, CRITC Riau, CRITC Jakarta

AMSAT

Data Centre Managers Course

19 June–21 July 2000

Australia 12 trainees from 4 provincial CRITCs and CRITC Jakarta

AMSAT

Preparatory Workshop on CRITC Information System Development

31 July –1 August 2000

CRITC Jakarta

15 staff of central CRITC

PMO, assisted by AMSAT

Multimedia Training Course 18 August–15 September 2000

LIPI Bandung 12 staff from four provincial CRITCs and CRITC Jakarta

PMO/LIPI Bandung

National CRITC Workshop on CRSIS Development

November 2000

CRITC Jakarta

Representative staff from all CRITCs and some Pokjas

Central CRITC/ AusAid

GIS-Remote Sensing Training Course for Reef Base Map Production

26 February–9 March 2001

CRITC Biak 6 trainees from CRITC Biak and Kupang

AMSAT/ CRITC Jakarta

Rapid Reef Assessment Course

20–31 May 2001

CRITC Biak and field Padaido

9 trainees from CRITC Biak and other researchers

AMSAT/P2O-LIPI

National CRITC Workshop on CRSIS Development

February 2002 CRITC Jakarta

Representative staff from all CRITCs and some Pokjas

Central CRITC / AusAID

AMSAT - Australian Marine Science and Technology; AusAID - Australian Agency for International Development;; CRITC - coral reef information and training center; CRSIS - coral reef spatial and information system; GIS -geographic information system; MMAF - Ministry of Marine Affairs and Fisheries Source: Indonesian Institute of Sciences (LIPI)

Appendix 3 21

TRAINING ACTIVITIES UNDER COMMUNITY-BASED MANAGEMENT AND SURVEILLANCE

Capacity building is conducted through training, technical advice, and facilitation in the field by CBM staff. Training courses and workshops were held for the community working groups, village motivators, and reef watchers. The most important ones were: 1. Training of Field Facilitators on the COREMAP program and CBM facilitation

Techniques (early December 1999); 2. Training of Motivators and Field Facilitators on program responsibilities, leadership,

group motivation techniques, and training of Pokmas (12–15 April 2000); 3. Training of Community Members on Village Coastal Resource Profiling: introduction to

participatory coastal resource appraisal techniques, needs assessment, and field survey techniques on reef, mangrove and other coastal resources (13–17 May 2000); a “roving team” provided follow-up support via on-the-job training and guidance during the implementation of the village profiling in each of the seven villages;

4. Training on Field Survey Techniques for Community-Based Fisheries Monitoring or Creel Surveys (September 2000); The creel survey program was established right after this training and has been very successful in Riau;

5. Training on Financial Management of Pokmas (6–12 November 2000); training of the chairman, secretary, treasurer, and a number of technical members of each Pokmas on techniques of good and transparent bookkeeping;

6. Training on Running the Village Libraries (May 2001); this training also included the donation of 425 books to the seven village libraries;

7. Training Workshop on Community Participation for Coral Reef Management (11–12 July 2001);

8. Training on Interpersonal Skills (24 and 26 September 2001); skills training of community workgroups and village motivators;

9. Training on Design and Running of Village Information Centres (25 and 27 September 2001);

10. Training Workshop for the Evaluation, Review, and Improvement of the CBM Concept (26, 28, 29, and 30 December 2001; 3 January 2002);

11. Training on Mariculture of Estuarine Grouper and the Establishment of Reserve Areas for Natural Restocking of Grouper (5–9 February 2002); participants from the Pokmas Produksi and Pokmas Konservasi have been trained in both the mariculture of estuarine grouper in floating cage operations as well as the combined establishment of partly closed reserve areas in shallow-water sites, where grouper broodstock is kept in pens for natural restocking of the area from the reserves;

12. Village Training Sessions on Revolving Funds and Credit Systems (July–November 2001); training sessions have been conducted with participants of the Pokmas Produksi and Pokmas Gender to help them establish revolving-fund schemes with the AIGA program and to follow appropriate administrative procedures and simple bookkeeping; and

13. Cross Visit to the CBM Program of the Coastal Resources Management Project (Proyek Pesisir) CRMP in North Sulawesi (14–25 April 2002); a team of more than 30 community representatives, COREMAP village staff, and facilitators visited the CBM activities of Proyek Pesisir in Desa Blongko, Desa Bentenan/Tumbak, and Desa Talise in Minahasa District, North Sulawesi Province; this was considered by the group to be of great value in discussing common issues and approaches and in reinvigorating the group members in activities in their own villages.

Foreign Local Total Foreign Local Total

A. Reforestation - Project Management 1,910 1,679 3,589 1,750 2,622 4,372

B. Watershed Rehabilitation - CRITCs 1,851 3,278 5,130 1,696 2,735 4,431

C. Community-Based Forest Management 115 645 760 245 595 840

D. BASE COST TOTAL 3,877 5,602 9,479 3,691 5,952 9,643

E. Contingencies 207 1,707 1,914 0 0 0

F. Interest During Construction 607 0 607 607 0 607

TOTAL 4,691 7,309 12,000 4,298 5,952 10,250CRITC - coral reef information and training centerSource: Asian Development Bank 's Loan Financial Information System data and Governmnet of Indonesia estimates.

ComponentAppraisal

PROJECT COSTS, LOAN ALLOCATION, CANCELLATIONS, ACTUAL DISBURSEMENTS AND GOVERNMENT COUNTERPART BUDGET

Table A4.1: Summary of Project Costs($'000)

Actual

22 Appendix 4

Foreign Local Total Foreign Local Total Foreign Local Total

A. Project Management 1,910 1,679 3,589 1,910 160 2,070 0 1,520 1,520B. CRITCs 1,851 3,278 5,129 1,851 1,629 3,480 0 1,650 1,650C. Community Based Management 115 645 760 115 439 554 0 206 206

D. Base Cost Total 3,877 5,602 9,478 3,877 2,227 6,104 0 3,376 3,376

E. Contingencies 207 1,707 1,914 207 332 539 0 1,374 1,374F. Interest During Construction 607 0 607 607 0 607 0 0 0

TOTAL 4,691 a 7,309 12,000 4,691 2,559 7,250 0 4,750 4,750

ADB - Asian Development Bank; COREMAP - Coral Reef Rehabilitation and Management Project; CRITC - coral reef information and training center.a Including a grant of $250,000 towards proposed COREMAP II feasibility study.

Source: Asian Development Bank 's Loan Financial Information System data and Government of Indonesia estimates.

Foreign Local Total Foreign Local Total Foreign Local Total

A. Project Management 1,750,164 2,621,710 4,371,874 1,750,164 1,215,173 2,965,337 0 1,406,537 1,406,537B. CRITCs 1,696,101 2,734,547 4,430,649 1,696,101 1,177,636 2,873,737 0 1,556,911 1,556,911C. Community Based Management 245,174 595,284 840,458 245,174 170,229 415,403 0 425,055 425,055

D. Base Cost Total 3,691,439 5,951,541 9,642,981 3,691,439 2,563,038 6,254,477 0 3,388,503 3,388,503

E. Contingencies 0 0 0 0 0 0 0 0 0F. Interest During Construction 607,000 0 607,000 607,000 0 607,000 0 0 0

TOTAL 4,298,439 a 5,951,541 10,249,981 4,298,439 2,563,038 6,861,477 0 3,388,503 3,388,503ADB - Asian Development Bank; COREMAP - Coral Reef Rehabilitation and Management Project; CRITC - coral reef information and training center.

a Including disbursement of $244,055 from the technical assistance grant of $250,000 for the COREMAP II feasibility study.Source: Asian Development Bank 's Loan Financial Information System data and Government of Indonesia estimates.

Table A4.2: Project Costs -- At Appraisal and Actual($'000)

Appraisal EstimatesTotal Project ADB Government

Component

Component

ActualTotal Project ADB Government

Appendix 4 23

Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total

01 Equipment 78,991 0 78,991 0 0 0 332,570 66,892 399,462 263,180 60,182 323,36202 Materials 0 0 0 0 0 0 0 0 0 0 0 003 Surveys, Inventory, and 131,473 0 131,473 0 0 0 0 0 0 85,254 0 85,254

Workshop04 Training and Fellowships 396,523 0 396,523 0 0 0 54,092 113,760 167,852 35,257 204,162 239,41905 Research and Development 93,013 0 93,013 0 0 0 0 35,046 35,046 42,471 75,937 118,408

(Extension and Demonstration)06 Consulting Services 0 0 0 0 0 0 762,383 149,761 912,144 348,125 137,935 486,06007 Interest and Commitment 6,010 0 6,010 53,042 0 53,042 84,436 0 84,436 202,315 0 202,315

Charges08 Unallocated 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 706,010 0 706,010 53,042 0 53,042 1,233,481 365,459 1,598,940 976,602 478,216 1,454,818

Source: Asian Development Bank's Loan Financial Information System data.

Foreign Local Total Foreign Local Total Foreign Local Total

01 Equipment 0 0 0 75,931 0 75,931 750,672 127,074 877,74602 Materials 0 0 0 0 0 0 0 0 003 Surveys, Inventory, and 0 124,486 124,486 130,254 898,284 1,028,538 346,981 1,022,770 1,369,751

Workshop04 Training and Fellowships 0 0 0 517,059 110,860 627,919 1,002,931 428,782 1,431,71305 Research and Development 0 5,795 5,795 10,350 220,879 231,229 145,834 337,657 483,491

(Extension and Demonstration)06 Consulting Services 90,458 359,058 449,516 0 0 0 1,200,966 646,754 1,847,72007 Interest and Commitment 261,197 0 261,197 0 0 0 607,000 0 607,000

Charges08 Unallocated 0 0 0 0 0 0 0 0 0

TOTAL 351,655 489,339 840,994 733,594 1,230,023 1,963,617 4,054,384 a 2,563,038 6,617,421

a Excludes $244,055 disbursed from the technical assistance grant of $250,000 recorded in the Asian Development Bank's Technical Assistance Information System.Source: Asian Development Bank's Loan Financial Information System data.

Table A4.3: Loan Disbursements, 1998-2001($)

1998 1999 2000 2001

Component

Category

Table A4.3: Loan Disbursements, 2002-2003($)

2002 2003 Total

24 A

ppendix 4

Plan Actual Plan Actual Plan Actual Plan Actual

01 Equipment 152 149 109 103 24 22 34 3302 Materials 7 7 143 94 184 157 252 21903 Surveys, Inventory, and 239 236 140 87 134 111 142 128

Workshop04 Training and Fellowships 72 70 159 105 19 13 96 7205 Research and Development 38 38 44 40 73 61 75 69

(Extension and Demonstration)06 Consulting Services 0 0 0 0 0 0 0 0

TOTAL 508 500 595 429 434 364 599 521

FY - fiscal yearSource: Indonesian Institute of Sciences (LIPI).

Plan Actual Plan Actual Plan Actual

01 Equipment 41 41 97 97 457 44502 Materials 289 275 224 210 1,099 96203 Surveys, Inventory, and 185 172 98 98 938 832

Workshop04 Training and Fellowships 154 131 25 25 525 41605 Research and Development 98 97 41 40 369 345

(Extension and Demonstration)06 Consulting Services 0 0 0 0 0 0

TOTAL 766 715 484 469 3,387 2,999

FY - fiscal yearSource: Indonesian Institute of Sciences (LIPI).

Table A4.4: Government Counterpart Funding, FY1998/1999-2003($'000)

Category

Total

FY 2001

FY 2002

FY 1999/2000FY1998/1999 FY 2000

FY 2003Category

Appendix 4 25

26 Appendix 4

Table A4.5: Loan Allocation, Cancellation, and Disbursements ($'000)

Undisbursed Category/Component Original Revised

Amount Cancelled Disbursed Balance

01 Equipment 900 890 10 878 12

02 Materials 435 0 435 0 0

03 Surveys, Inventory, and Workshop 1,547 1,562 (15) 1,370 192

04 Training and Fellowships 1,152 1,400 (248) 1,432 (32)

05 Research and Development 457 457 0 482 (25)

(Extension and Demonstration)

06 Consulting Services 1,363 1,849 (486) 1,848 1

07 Interest and Commitment Charges 607 607 0 607

08 Unallocated 539 0 539 0 0 TOTAL 7,000 6,765 235 6,617 148

Source: Asian Development Bank's Loan Financial Information System data.

PROJECT IMPLEMENTATION SCHEDULE

Half 1 Half 2 Half 1 Half 2 Half 1 Half 2 Half 1 Half 2 Half 1 Half 2 Half 1 Half 2 Half 1 Half 2Institutional Strengthening

Community Based Management (CBM)

2003

Establish Provincial and District Unit Contract Mobilize Consultant Procure Equipment

1997

Formalize and Implement plans Evaluate Pilot CBM

Task Name

Establish PMO Assign and Mobilize Staff

Issue Draft CBM Guideline Select, Train and Deploy Field Managers Conduct Socialization and Need Assessment

Prepare Project Account and Reports

1999 20001998 2001 2002

Establish Facilitator Network

Database, Monitoring & Research Implement database and BME

Notes:

Original Actual

The differences between original and actual were caused by several conditions:

a. There were two times extentions. b. Delayed one year of consultant mobilization. c. Changing project location from Moluccas to Biak due to security problem influences the project progress. d. Synchronize guidance activities among donor funded, eg: CBM.

Appendix 5 27

Appendix 6 28

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Summary Description of the Covenant Reference in Loan Agreement

Status/Brief Remarks of Compliance

A. Reporting Requirement 1. The Borrower shall maintain records and

accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the loan.

Article IV, Section 4.06(a)

Maintained regularly, monitored and reported monthly/quarterly records, annual, and final reports

2. The Borrower shall maintain separate accounts for the Project; have such accounts and related financial statements audited annually by independent auditors.

Article IV, Section 4.06(b)

Complied with

3. The Borrower shall furnish to ADB, not later than 9 months, certified copies of such audited accounts and financial statements and the report of auditors (including auditors’ opinion).

Article IV, Section 4.06(b)

Complied with and generally submitted within the required reporting period

4. The Borrower shall furnish to ADB such other information concerning such accounts and financial statements.

Article IV, Section 4.06(b)

Complied with

5. The Borrower shall furnish to ADB all such reports and information: the loan and the expenditure of the proceeds and maintenance of the service; the goods and services and other items of expenditure financed out of the proceeds of the loan; the Project; the administration, operations, and financial condition of the agencies of the Borrower responsible for the carrying out of the Project operation and management of the project facilities; financial and economic conditions in the territory of the Borrower; and the international balance of payments position of the Borrower; and any other matters relating to the purposes of the loan.

Article IV, Section 4.07(a)

All have been substantially complied with.

6. The Borrower shall furnish to ADB quarterly reports on the carrying out the Project and the operation and management of the project facilities.

Article IV, Section 4.07(b)

Complied with

7. Promptly after physical completion of the Project, the Borrower shall prepare and furnish to ADB a report on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligation under the Loan Agreement and the accomplishment of the purposes of the loan.

Article IV, Section 4.07(c)

Complied with; the PCR was submitted by LIPI in September 2004

B. Project Implementation and Coordination 8. The PMO shall be established within 1 month

after the effective date and shall be staffed by a full time senior PMO Director from BAPPENAS, a Deputy PMO Director, a Secretary and Project Manager from LIPI, and a sufficient number of qualified staff to ensure delivery of the project output.

Schedule 6, para. 1

Complied with, although appointment of some staff was late; full-time PMO director appointed on 31 August 2001 along with secretary and 4 assistant directors; project manager appointed; adequate qualified staff deployed

Appendix 6 29

Summary Description of the Covenant Reference in Loan Agreement

Status/Brief Remarks of Compliance

9. A National Steering Committee (NSC) shall provide policy guidance and direction to COREMAP. A National Project Secretariat (NPS) shall also be established, within 3 months after the effectiveness date. The NSC and NPS shall have defined reporting procedures to the National Marine Council, State Ministry of Environment, Ministry of Home Affairs, and other relevant institutions. BAPPENAS, through NPS, shall coordinate the inputs of other central government agencies.

Schedule 6, para. 2

Complied with; NSC established by BAPPENAS; NPS was later changed to technical committee under the Bureau of Marine Affairs and Fisheries, BAPPENAS; National Maritime Council has been dissolved; inputs to other government agencies provided through BAPPENAS

10. A Provincial Steering Committee (PSC) shall be formed under coordination of BAPPEDA TK.I., within 1 month of the effective date.

Schedule 6, para. 3

Complied with.

11. There shall be a District Secretariat under the office of the Bupati (district head) to coordinate the inputs of district level agencies.

Schedule 6, para. 3

Complied with, although Pokjas/Task Force appointed by Bupati decree

12. A Senior Field Manager shall be appointed within the District Secretariat to assist the Bupati in project execution and supervision, but shall report directly to the PMO.

Schedule 6, para. 3

Complied with; head of Pokja appointed by Bupati decree (SK Bupati)

13. Village Motivators shall be selected by the villagers to assist the Field Managers.

Schedule 6, para. 4

Complied with

14. Reef Watchers shall be selected by the villagers and shall work with the existing village Security Guards.

Schedule 6, para. 4

Complied with

C. Financing Arrangement 15. The Borrower shall ensure that funds for

community-based management are released by LIPI to the field level.

Schedule 6, para. 5

Complied with Funds distributed through Community Group (Pokmas) in the village

D. National Policy Framework 16. The Borrower shall prepare, by the end of the

second year of project implementation, a revised national policy framework for coral reef management and rehabilitation.

Schedule 6, para. 7(a)

Complied with. The document was handed over to DKP on 26 February 2002 for enactment

E. Legislation and Law Enforcement 17. The Borrower shall take appropriate steps to

draft national and provincial legislation to support the forthcoming coastal and marine legislation, including delegation of coastal and marine resources management to the provincial governments, as applicable to coral reef management.

Schedule 6, para. 8

Complied with; the Autonomy Law (No. 22/99) and the Spatial Use Act (No. 24/92) provide the general legal framework for management at the local level

F. Environmental Matters 18. The Borrower shall complete a nationwide

inventory of the extent of coral reefs in its territories by 31 March 2001.

Schedule 6, para. 9

Completed in December 2001 Under cooperation with LAPAN (National Agency for Aeronautics)

Appendix 6 30

Summary Description of the Covenant Reference in Loan Agreement

Status/Brief Remarks of Compliance

G. Benefit Monitoring and Evaluation 19. The Borrower shall ensure that a

comprehensive benefit monitoring and evaluation system is set up within the first year of project implementation and the CRITCs are assigned to collect baseline social, ecological, and economic data, as well as routine monitoring and reporting throughout the project implementation period.

Schedule 6, para. 10

Complied with. BME system has been set up under CRITC. Baseline data gathering and monitoring, as well as reporting, has been done regularly through the Project

H. Midterm Review 20. A comprehensive midterm review of the

Project shall be carried out after about 18 months from the effective date. The review shall critically evaluate the status of implementation and identify any required changes or improvements in implementation arrangements for the remainder of the Project.

Schedule 6, para.11

ADB MTR was carried out from 23 October to 7 November 2000 in joint review with WB Completed in January 2001

I. Operation and Maintenance 21. LIPI shall be responsible for the proper

operation and maintenance of the project facilities.

Schedule 6, para. 12

Complied with. LIPI committed to provide adequate budgets to maintain the operation and maintenance of project facilities including a counterpart budget to support O&M for CRITCs in five project locations

ADB - Asian Development Bank, BAPPENAS – National Development Planning Agency; BME - benefit monitoring and evaluation; CRITC - coral reef information and training center; LIPI - Indonesian Institute of Sciences; MTR - Midterm Review; O&M - operation and maintenance; PMO – project management office; WB - World Bank. Source: Asian Development Bank and Indonesian Institute of Sciences (LIPI).

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd HalfCOMMUNITY-BASED MANAGEMENT

I. Staff Mobilization and Organization 1.1 Structure and Organization PTF/KTF (priority Riau)

1.2 Selection of NGOs/Field Managers

1.3 Final Selection of Pilot Villages/Settlements

1.4 Mobilization of Field Managers

II. Social Preparation and Training for CBM/AIGAs 2.1 Ongoing Socialization of COREMAP Activities

2.2 Introductory Training for Field Facilitators

2.3 Selection and Training of Village Motivators / Reef W atchers

2.4 Formation and Empowerment of POKMASs

2.5 Identification and Support for "Early Action"

2.6 Annual Community W ork Program for CBM

2.7 Basic Training in Reef Conservation

2.8 Training for AIGAs

III. Development of Coral Reef Management Plans 3.1 Formulation of Methods and Format of Resource Profiles and CRMPs

3.2 Development of Village Coastal Resource Profile

3.3 Community-Based Design of Village CRMPs

3.4 Development of Village Ordinance for User Rights and M&E of ReefResources

3.5 Proposal Development for Support Activities

3.6 Implementation of CRMPs

IV. Development and Implementation of AIGAs 4.1 Identification and Contracting of Local TA for AIGAs Studies

4.2 Exploring and Development of Saving Systems and Credit Supply

CONSULTING SERVICES SCHEDULE

1999 2000 2001 2002Task Name

Appendix 7 31

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half4.3 Identification of Suitable and Acceptable AIGAs

4.4 Technical Design and Financial Review of Short-Listed AIGAs

4.5 W orkshop on Best Practices for AIGAs in Project Site (2 days)

4.6 Development of Implementation Program for AIGAs and Reef-SavingInfrastructure

MARINE PROTECTED AREA, SENAYANG-LINGGA V. Development of Marine-Protected Area, Senayang-Lingga

5.1 Inventory, Determination of Conservation Issues and Profiling

5.2 Community-Based Planning and Design of Sanctuary Boundaries and Zoning

5.3 Development of MPA Management Plan 2

5.4 Implementation of MPA Management Plan

5.5 Field Demarcation of Proposed MPA

RESEARCH & MONITORING VI. CRITC System Design and Development

6.1 Field Orientation for CRITC Establishment

6.2 CRITC Staff Selection and Center Responsibilities

6.3 CRITC Information System Design and Development

6.4 Introductory Workshops, CRITC Information System

6.5 CORENET Equipment Installation and Testing

6.6 Links with National and International Reef Programs

6.7 Design and Development of W eb Information Interface

6.8 Identification of Training Needs of CRITC Staff

VII. Expansion of CRSIS Program to Provinces 7.1 Development of CRITC Sites Coral Reef GIS Base Maps

7.2 Training in Development and Use of Provincial CRITC Information Systems

VIII. Applied Research in Support of COREMAP Field Sites8.1 Research Agenda W orkshops

8.2 Rapid Reef Resource Surveys, Riau

1999 2000 2001 2002Task Name

32 Appendix 7

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half8.3 Rapid Reef Resource Surveys, Sulsel, Biak, Kupang

IX. Project BME - Reef Health and Community Welfare Monitoring 9.1 Design of BME Program and Methods

9.2 Design of Field Manuals for BME and Associated Database

9.3 Field-Testing of BME Methodology

9.4 Organization of BME Baseline Surveys

9.5 Identification of Training Needs; Design and Delivery of Training Program

DESIGN AND FEASIBILITY REVIEW OF COREMAP II X. DESIGN AND FEASIBILITY REVIEW OF COREMAP II

10.1 Inception

10.2 Review and Concept Development

10.3 Scoping and Confirmation of ADB COREMAP Sites

10.4 Component Design

10.5 Project Documentation

OTHERSXI. REPORTING

11.1 Inception Report

11.2 Quarterly Progress Reports

11.3 Monthly Progress Reports

11.4 Bimonthly Financial Reports

11.5 Technical Reports

11.6 PIP Report, COREMAP II (already under COREMAP II)

11.7 Final Report (draft 15 August 2001)

XII. Workshops and Large Meetings 12.1 Inception Review Meeting

12.2 Introductory W orkshops, CRSIS Jakarta

12.3 Introductory W orkshop, CRSIS Riau (merged with 12.2)

12.4 Introductory W orkshop, CRSIS U..P. (merged with 12.2)

1999 2000 2001 2002Task Name

Appendix 7 33

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half12.5 Presentation and Review of Draft CRMP, Senayang-Lingga

12.6 Best Practices for AIGAs

12.7 Proposed Marine Sanctuary (3 workshops)

12.8 Project Midterm Review

12.9 Workshop Research Agenda, Riau

ADB - Asian Development Bank; AIGA - alternative income-generating activity; BME - benefit monitoring and evaluation; CBM - community-based management; COREMAP - Coral Reef Rehabilitation and Management Project; CRITC - coral reef information and training center; CRMP - coral reef management plan; CRSIS - coral reef spatialand information ceter; M&E - monitoring and evaluation; MPA - marine protected area ; NGO - nongovernment organization; PIP - project implementation plan; PTF/KTF - Provicial Task Force/Kabupaten Task Force; TA - technical assistance

Note: Original Actual

Source: Indonesian Institute of Sciences (LIPI).

1999 2000 2001 2002Task Name

34 Appendix 7

LIST OF EQUIPMENT, VEHICLES, AND MOTORCYCLE PROCURED

Items No. of

Package Mode of

Procurement Provider Date

Acquired Contract Amount

Computer and related equipment (desktops, printers, softwares)

1 IS PT. Fitelindo Adhimitra Semesta

17 Jun 2000 US$ 356,800

Field Equipment (Riau, SulSel and Kupang) (diving equipment, air compressors, underwater cameras, and related accessories)

1 IS PT. Seguna Sena Pratama

17 Jan 2000 US$ 149,410

Reef Watcher Equipment IS PT. Berkat Nuan-sa Nusantara

3 Jan 2000 US$ 114,500

Marine Telecommunication (Radio Marine Transceiver–8 units)

1 DP PT. Hasta Dewi Ropar 3 Jul 2000 Rp. 217,000,000

Boats (Package 1 – Traditional boat)

1 DP CV. Rauda Jaya 3 Jul 2000 Rp. 217.000.000

Boats (Package 2 – Research Vessel, 1 unit)

DP CV. Tamara Karya 3 Jul 2000 US$ 94,914.50

Motorcycle (3 units) DP PT. Astra International 26 Apr 2000 Rp. 34,841,818 (US$ 4,099)

Office equipment (National, Riau, Sulsel)

DP PT. Gilang Pratama Various dates Rp. 265,120,000 (US$ 35,349)

Computer and related equipment (Biak)

DP CV. Sakikirara Various dates Rp. 331.045.500

Field Equipment (Biak)

1 DP PT. Bintang Berian Permai

26 Jan 2000 US$ 36,291

Leaseline Internet tools DP CV. Cahaya Widya Nusantara

Rp. 38.400.000

DP=Direct Purchase; IS=International shopping. Source: Indonesian Institute of Sciences (LIPI).

Appendix 8 35

36 Appendix 9

ORGANIZATION CHART OF LIPI AND PIU-LIPI

Chairman of Indonesian Institute of Sciences

Deputy for Life

Sciences

Deputy for Engineering

Sciences

Deputy for Earth

Sciences

Deputy for Social Sciences and

Humanity

Deputy for Scientific Services

Executive Secretary

Research Center for Limnology

Assistant Deputy IV for MCS

Project Manager COREMAP I

Research Center for

Geotechnology

Research Center for

Oceanography

Director of PMO COREMAP I

Head of Secretariat PMO COREMAP I

Assistant Deputy I for

CRITC

Assistant Deputy II for Public

Awareness

Assistant Deputy III for CBM

Reserch Center for Metallurgy

CBM – community-based management; COREMAP – Coral Reef Rehabilitation and Management Project; CRITC – coral reef information and training center; LIPI – Indonesian Institute of Sciences; PIU – project implementation unit; PMO – project management office Source: Indonesian Institute of Sciences (LIPI).