Strategic_Spatial_Assessment_Green_Prosperity_SOW.pdf

CONSULTANT SERVICES

Strategic Spatial Assessment and Landscape Analysis for Green Prosperity Program Implementation for MCC in Indonesia

A. Introduction

The Millennium Challenge Corporation (MCC) is a U.S. Government corporation whose mission is to provide assistance that will support economic growth and poverty reduction in carefully selected countries that demonstrate a commitment to just and democratic governance, economic freedom, and investments in their citizenry. For more information on the MCC, please visit www.mcc.gov.

B. Background

On November 19, 2011, MCC signed a five-year US$600 million Compact with the Republic of Indonesia designed to reduce poverty through economic growth. The Compact includes three main activities: Community-based Nutrition Project, Green Prosperity Project, and Procurement Modernization Project. These activities will be implemented through an entity established by the Government of Indonesia known as the Millennium Challenge Account-Indonesia (MCA-I).

Protecting Indonesia’s natural resource base in the face of demographic, social and economic forces requires developing viable economic alternatives. The $332.5 million Green Prosperity (GP) Project is putting in place an innovative model for supporting rural economic development and catalyzing greater investment in sustainable land use practices in Indonesia. Investments funded by the GP Facility will be geared toward supporting a mutually reinforcing set of objectives, underpinned by the interdependencies at the community level between energy, productive uses of energy, and protection of watersheds and critical ecosystems. To that aim, the GP Project is applying a “landscape approach” which takes ecosystem and social equity factors into account. The GP Project will have four core activities: participatory land use planning; a funding facility (including commercial financing and grant-making), technical assistance and oversight, and a green knowledge capacity building mechanism.

C. Scope

MCC requires professional consulting services on strategic spatial assessment to support the oversight of the implementation of the GP project. See http://mca-indonesia.go.id/compact-program/kemakmuran-hijau/

D. Compact Overview http://www.mcc.gov/

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A number of consultancies focused on data from four starter districts have produced significant inputs for the Green Prosperity project as it seeks to launch its funding facilities as well as roll-out to additional districts. These include work on District Readiness Assessment (DRA), Pre- Feasibility for GP model projects, Strategic Spatial Assessment for GP Design, and Developing Technical Capacity and Installing a Geographic Information System (GIS) at MCA-Indonesia.

In addition, rapid DRA has been conducted on a number of GP “roll-out” districts. MCA-I has started piloting Village Boundary Setting and Community Resource Mapping (VBS/CRM) under GP’s Participatory Land Use Planning (PLUP) Activity and has launched grant facilities for Natural Resources Management and Renewable Energy projects in select Districts.

The Consultant shall provide technical assistance and due diligence support for ESP to ensure continuous commitment of GP to mutual reinforcement between interdependent “green” (improved environmental and natural resource management) and “prosperity” (poverty reduction through sustained economic growth). In particular, as the GP implementation moves forward, it is critical for MCC and MCA-Indonesia to keep a pace with regulatory and institutional reforms that can help promote green and inclusive growth, and the present both a challenge and an opportunity in decentralized Indonesia. Among them:

• The new Ministry of the Environment and Forestry, created through the merger of Ministry of Forestry and Ministry of the Environment, could reduce a disabling misguided divide between environmental management and resource extraction prioritizing revenue, when both can be mutually-reinforcing.

• The merging the Ministry of Agrarian Affairs with Spatial Planning elevates spatial planning from a Directorate General (DG) inside the Ministry of Public Works to a Ministerial level, promising more “spatial certainty” essential to village community development and private sector investments alike.

• The newly combined Ministry of Villages, Development of Backward Regions and Transmigration elevates village affairs from a DG to a Ministerial level that could strengthen one of Indonesia’s landmark new laws and its implementation, the new Village Law of 2014, in turn strengthening the position of village communities central to GP’s interventions.

E. Tasks

Based on findings and recommendations from work performed to-date, evolving MCA-I needs and considering the highly dynamic nature of GP work, the consultant’s assignments may include the following:

1. Technical oversight support for implementation of landscape approach for GP projects within the Investment Landscapes and their PLUP enabling condition processes. This will include integration of criteria and conditions emanating from the Environmental and Social Management System (ESMS) and Social and Gender Integration Plan (SGIP) as well as relevant district and provincial level programs and plans, all contributing to preparation, roll out and use of “landscape toolkits” relevant to investments under the various facilities.

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2. Enhanced Safeguards with respect to potential for social jealousy and or social marginalization. This shall include mainstreaming green prosperity’s mutually-reinforcing environmental and economic incentives in national and sub-regional policies and institutions, with specific attention to Government of Indonesia Village Law 6 of 2014, Customary Rights implementing regulations arising from Indonesia’s Constitutional Court Decision 35, and supporting implementation of IFC Performance Standards (PS), in particular PS 7 on Indigenous People.

3. Inclusion of Community-Level/Stakeholder Monitoring. This shall include advisory and due diligence support to ensure adherence with Stakeholder Engagement Plan, ESMS, and Article 70 of Law 32 of 2009, which mandates a role of local communities as key to the proper management and protection of the environment.

4. Supporting incorporation of spatial planning perspective across GP investments. This shall include providing the advisory and due diligence support necessary to ensure district-level establishment of transparent natural resource licensing systems, and incorporation of village settlement and area information into revised spatial plans, as agreed and committed to by the district signatories of Memoranda of Understanding with

MCA-I.

F. Deliverables

The Consultant shall assist MCC in reviewing the design and implementation planning and oversight of the Green Prosperity Project in Indonesia.

Deliverable 1: Trip reports, ad hoc reports or information as may be requested by the COR/PM.

Deliverable 2: Final report, including comments by MCC, due as per agreement.

Acceptance Criteria

The deliverables will be evaluated according to the following criteria:

• Thoroughness and timeliness in complying with all of the elements in the tasks specified.

• Quality and clarity of analyses and work produced.

• Timeliness and efficacy of communications with relevant counterparts at MCC, MCA, and other relevant organizations.

All reports are to be submitted in English in hard and electronic copy (in MS Word), with tables, data and calculations in MS Excel

G. Country

Indonesia and any MCC eligible country, if required.

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H. Period and Place of Performance

This consultancy is for base year plus one option year. The estimated number of hours per year will be 800.

The Consultant shall perform work in his/her home office and/or MCA-I headquarters.

Extensive domestic travel to Compact project sites will be required (up to 60% of the time).

Travel to MCC headquarters may be required.

I. Conflict of Interest

The consultant shall be precluded from bidding on work and services (design, assessment, construction and supervision) to be procured by the local MCA accountable entity or using funds advanced under a Compact in the relevant country, unless the consultant submits a mitigation plan sufficient to ameliorate any conflict of interest pursuant to the rules applicable to the procurement process.

J. Subcontracting

The consultant is authorized to subcontract data collection, data preparation, social and gender analysis, and related services as needed. The overall costs for subcontracting shall not exceed 25% of the consultant’s total negotiated unloaded direct labor cost.

K. Other requirements

International travel will be required. The Consultant may be requested to mobilize on a short notice and will be expected to deliver high quality finished products in a timely manner.

L. Timing and Reporting

All formal communication with MCC, including reports, will be submitted to the COR/PM. The COR/PM for this requirement will be identified via separate correspondence.

The COR/PM will have technical responsibility for monitoring the contractor’s performance.

The COR/PM will review and evaluate the contractor’s performance, and also will coordinate any communications with relevant counterparts and other donor agencies and organizations.

Any changes in the terms of the Call Order will be made in writing and approved by the Contracting Officer. No representation of the COR/PM shall serve as a basis for an alteration in the general scope of this Call Order or of the terms and conditions of the Call Order unless confirmed in writing by the Contracting Officer. The contractor must communicate with the Contracting Officer on all matters that pertain to the Contract terms. Proceeding with the work without proper contractual coverage could result in nonpayment for that work.

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The designated Consultant shall be expected to coordinate with local authorities responsible for MCC Compact implementation as well as other donors, where relevant. However, designated Consultant would report directly to the designated COR/PM.