IEE_SSTC_approved.pdf

Asia 15-052

:~· USAID

~ FROM THE AMERICAN PEOPLE

INDONESIA

INITIAL ENVIRONMENT EXAMINATION (IEE)

REQUEST FOR CATEGORICAL EXCLUSION

PROGRAMJACTIVITY DATA:

Country Code - Development Objective (DO) : DO 3, IR 4

Program/ Activity Location : Indonesia

Program/ Activity Title: US-Indonesia Partnership for South-South & Triangular Cooperation Project (SSTC)

Funding Begins: FY15; Funding Ends: November 15, 2019

Life of Project (LOP) Amount: $6,200,000

Date: March 3, 2015

IEE Amendment (YIN): N Current Date: March 3, 2015 If 'YES,' Number and Date of Original IEE: NIA

ENVIRONMENTAL ACTION RECOMMENDED:

Categorical Exclusion: X Negative Determination: 0 Positive Determination: 0 Deferral: 0

ADDITIONAL ELEMENTS:

CONDITIONS: 0

SUMMARY OF FINDINGS:

The US-Indonesia Partnership for South-South and Triangular Cooperation Project is designed with the primary purpose of strengthening GOI capacity to provide development assistance. GOI is seeking outside assistance from already established aid agencies, such as Japan International Cooperation Agency (JICA), Gesellschaft ftir Internationale Zusammenarbeit (GIZ), Department of Foreign Affair and Trade (DFAT), and United States Agency for International Development (USAID) to assist in the creation of a development agency. Coordination between United States Government (USG), Government of Indonesia (GOI), and third countries will allow for training and technical assistance to be shared between all parties involved. At the moment, interaction between USG and GOI is centered around capacity-building projects that include, but are not limited to, compiling and comparing development frameworks from various ministries;

developing training curriculums that can be implemented and shared on a peer-peer basis within civil servants of GOI; and selecting and cultivating trilateral cooperation pilot projects which move Indonesian foreign assistance beyond workshops to strategic and results-based development assistance.

The environmental determination for SSTC falls under a categorical exclusion because as described in §216.2 ( c )(I )(i) and §216.2 ( c )(2), there is no significant effect on the human, physical, or biological environment. All activity at the moment is limited to action that falls under §216.2 (c)(2)(i), §216.2 (c)(2)(iii), §216.2 (c)(2)(v), and §216.2 (c)(2)(xiv); thus, a categorical exclusion is requested for the current US-Indonesia Partnership for SSTC activity, which consists of technical assistance and capacity building that constitute no environmental impact. Later implementation of individual pilot projects within the SSTC program may call for a reassessment or amendment, seeing as each pilot project will have a different purpose, some of which may have an impact on the surrounding natural or physical environment. However, the SSTC team will carefully examine these pilot projects with the MEO to determine environmental impact. At this time, all pilot projects are expected to remain as capacity building, technical assistance, and training activities.

1. BACKGROUND AND ACTIVITY DESCRIPTION

Background: Under the Country Development Cooperation Strategy (CDCS) 2014- 2018, the SSTC program operates within the framework of Development Objective (DO)

3. DO 3 constitutes advancing global development priorities of mutual interest, and Indonesian SSTC strengthens cooperation between countries to further activity of mutual interest, increase collective self-sufficiency, and promote development efforts. This project marks the transformation of the US-Indonesian relationship from one of donor recipient to that of development partner. The SSTC program will function based on demand-driven projects piloted to satisfy the requests of third countries to Indonesia.

USAID jointly designed activities with the GOI National Coordination Team (NCT) under the South-South and Triangular Cooperation (SSTC) PAD, approved by the USAID/lndonesia Mission Director on July 15, 2014. The SSTC PAD lays out three mechanisms for the United States-Indonesia Partnership (USIP) on SSTC. Component 1 is a local contract (USIP I).

Component 2 is a government-to-government (020) direct financing mechanism, and Component 3 is direct USAID assistance to the National Coordination Team (NCT) provided through peer-to-peer exchanges. The purpose ofUSAID's SSTC project is to strengthen the Government of Indonesia's capacity to provide development assistance that is strategic, effective, and delivers results in third countries.

Activity Description. The purpose of the U.S.-Indonesia Partnership (USIP) for South-South and Triangular Cooperation project is a five year program to develop the capacity of GOI to provide more effective and strategic foreign development assistance. The USIP project has three main focus areas:

l) Strengthen GO l's SSTC Framework and Coordination by increasing the capacity of the National Coordination Team and implementing technical line ministries and improving the inclusiveness of SSTC in Indonesia;

2) Increase Support for Triangular Cooperation through increased cooperation between the USG and the GOI to expand triangular cooperation activities; and

3) Advance Learning and Knowledge Management in SSTC through increased collaboration between USAID. GOI and partners (traditional and emerging development partners. civil society, think tanks, academia. private sector etc.) to conduct Collaborating, Learning and Adapting (CLA) activities to advance the knowledge around SSTC and continue to adapt programming based on learning results.

A. Increasing Capacity of the National Coordination Team

The US-Indonesia Partnership for SSTC Project will deliver technical assistance to the NCT and implementing technical line ministries involved in SSTC activities to address the challenges identified by these agencies, supporting the GOI to better position itself to provide foreign development assistance. This assistance will focus on institutional frameworks (policies, processes and procedures), developing GOI capacity to engage key stakeholders (private sector, universities and civil society) and facilitate knowledge building of NCT and line ministries staff in project design, development theory and practices and monitoring and evaluation.

Short and medium-term technical experts will be deployed to help GOI with identified demand-based activities.

Through the following illustrative activities, the USIP project seeks to enhance the capacity ofNCT and GOI to strengthen GOl's SSTC framework and coordination:

• Sponsoring workshops, seminars, and conferences on selected development issues;

• Support exchange visits;

• Provide direct technical assistance for developing financing frameworks, monitoring and evaluation etc. to further capacity of NCT and line ministries;

• Commission studies and analyses to help GOI investigate, discuss, analyze, and further develop capacity for SSTC frameworks;

• Support peer-peer engagement and staff exchanges with USAID;

• Develop a training curriculum and train Indonesian civil servants in project design and management;

• Support increasing partnership opportunities for universities, CSOs and private sector in SSTC; and

• Support outreach activities to discuss SSTC to Indonesian public, parliament etc.

The expected outcome of these activities is to create a development-centered body within GOI that can provide strategic assistance to other partners, create new partnerships, and increase technical capacity within the implementing Ministries. The outcomes here will complement the activities and goals around expanding triangular programming between the US and Indonesia.

B. Expanding Triangular Cooperation with the USG

The USIP local contract activity- Component 1 (USIP 1) will also support triangular pilot activities, in conjunction with a future USIP Component 2 government-to-government (G2G) mechanism, as a key way to build GOI capacity in planning, designing, implementing, and monitoring and evaluating development assistance. Over the course of the USIP 1 project, the contract will support capacity development activities to help GOI design more comprehensive and sustainable triangular projects, ensuring more impact in third countries and increased government resources for future triangular cooperation programming. This will contribute to the improvement of GO I's bilateral South-South Cooperation over time. All of this support will be designed jointly, with support from the contracting mechanism, by USAID and the GOI as a core principle of this overall project is peer-to-peer/government-to-government interaction and assistance.

Through the following illustrative activities, the USIP project seeks to enhance GOI capacity through increasing support for triangular cooperation:

• Development and agreement on a set of criteria for the review and approval of potential pilot projects;

• Co-funding of USG and GOI resources on SSTC pilot programs requested by third countries to Indonesia;

• Development of a triangular cooperation pilot projects lessons learned tracking mechanism with the goal of incorporating lessons into new planning on SSTC;

and

• Technical assistance on initiatives where Indonesia intends to share experiences internationally but still requires attention to domestic issues.

It is the hope that at the end of the project GOI will not only have a higher efficacy in sharing results with third countries, but also increased development capabilities through the implementation of various pilot projects.

C. Increased Collaboration between GOI. USAID and partners

This objective will build on the first two objectives' activities to provide comprehensive Collaborating, Learning, and Adapting (CLA) themes throughout the activities. GOI and USAID will share project experiences through learning events, after action reviews, and outreach with other development partners.

Through the following illustrative activities, the USIP project seeks to advance learning and knowledge management:

• Facilitate USAID-GOI joint performance management tool;

• Provide monthly/quarterly newsletters, case studies, and other documents to share learning;

• Facilitating After Action Reviews for each triangular project and/or project milestones to build in time to reflect and feed into case studies mentioned above;

• Organize participation in other partners' learning events, conferences on South South and Triangular Cooperation, as appropriate; and

• Development of a triangular cooperation pilot projects lessons learned tracking mechan ism with the goal of incorporating lessons into new planning on SSTC.

While the primary functions of the project are centered on capacity-building activities, the launch of pilot projects may include activities as diverse as the technical assistance on urban flood mitigation to maternal health initiatives. As programming is still under development and activities are demand-driven by third countries, USAID will have to maintain flexibility in its management of the SSTC program and maintain coordinated efforts with GOI for the duration of the project.

2. JUSTIFICATION FOR CATEGORICAL EXCLUTION REQUEST

2.1 Recommended Determination

A categorical exclusion pursuant to 22 CFR 216.2( c )(2)(i), is recommended for all US-Indonesia Partnership for SSTC Program training activities, technical assistance, general capacity building activities, research and analyses; development planning activities and information transfers between USG, GOI, and third countries, except to the extent such programs include activities directly affecting the environment. The activities described above justify a Categorical Exclusion pursuant to 22 CFR 216.2(c)(l) and (2), for which an Initial Environmental Examination (IEE) or an Environmental Assessment is not required because they fall under 22 CFR 216.2(c)(l)(i), which states that the action does not have an effect on the natural or physical environment.

Specifically, the proposed interventions fall into the following classes of actions, which are not subject to the procedures set forth in 22 CFR 2 16.3(2), except to the extent provided herein:

a) 22 CFR 216.2(c)(2)(i), for activities involving education, training, technical assistance, or training programs;

b) 22 CFR 216.2(c)(2)(iii), for activities involving analyses, studies, academic, or research workshops and meetings;

c) 22 CFR 216.2(c)(2)(v), for activities involving document and information transfers; and

d) 22 CFR 216.2(c)(2)(xiv), for studies, projects or programs intended to develop the capability of recipient countries and organizations to engage in development planning.

2.2 Mitigation, Monitoring and Evaluation

As required by ADS 204.5.4, the SO team will actively monitor ongoing activities for compliance with approved IEE recommendations, and modify or end activities that are not in compliance. Specifically for pilot projects activities, the SO team have internal mechanism to screen and carefully examine these pilot projects before awarded. At this time, all pilot projects are expected to remain as capacity building, technical assistance, and training activities. For any condition that they find potential pilot projects outside the scope of this categorical exclusion activities, the SO team will report to MEO and an amendment of the IEE would be necessary. An amended IEE also will be prepared if:

• Funding levels are increased

• Time period is extended

• Additional activities outside the described scope of work are added

3. LIMITATIONS OF IEE

This IEE does not cover activities involving:

a. Assistance, procurement or use of genetically modified organisms (GMOs), which will require preparation of a biosafety assessment (review) in accordance with ADS

201.3. l 1.2(b) in an amendment to the IEE approved by the Bureau Environmental Officer (BEO);

b. Activities for the procurement, use or recommendation for use of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials;

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

d. Development Credit Authority (DCA) or Global Development Alliance (ODA) programs;

e. Procurement or use and/or disposal of Asbestos Containing Materials (ACM) (i.e.

piping, roofing, etc.), Polychlorinated Bi phenyl's (PCB) or other hazardous/toxic materials for construction projects.

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

g. Construction activity

Any of these actions would require an amendment to the IEE to be approved by the BEO.

4. REVISIONS

If during implementation, project activities are considered outside of those described in this threshold decision, an IEE or an amended Request for Categorical Exclusion shall be submitted.

Pursuant to 22CFR216.3(a)(9), if new information becomes available which indicates that activities to be funded by the Program might be "major" and the Program's effect "significant," this threshold decision will be reviewed and revised by the cognizant operating unit and submitted to Bureau Environmental Officer for approval and, if appropriate, an Environmental Assessment will be prepared.

[Clearance Page]

APPROVAL OF·ENVIRONMENTAL ACTION RECOMMENDED

By signing below, you approve the IEE for the South-South Triangular Cooperation Project

MISSION ENVIRONMENT AL OFFICER CLEARANCE:

MEO:~~ Date: 3/5/ i5 I I

USAID/lndonesia - Mission Environmental Officer

ADDITIONAL CLEARANCE:

DRG:~th \._/

USAID/Indonesia - Director of Democracy, Rights and Governance

REO: V-- ~ ... Date: "'!> I f" I I J Aaron Brownell Southeast Asia and Pacific Regional Environmental Advisor

RLA: --~____......:;. ___ _ Date:~ -IL-IS

\\DIR:

rew B. Sisson

USAID/Indonesia - Mission Director

Approved:

Disapproved: 0

DECISION OF THE ASIA BUREAU ENVIRONMENTAL OFFICER:

By signing below, you approve the IEE for US-Indonesia Partnership for South-South & Triangular Cooperation Project

BEO: ·--_ .. __ __ ""'_ Date: 3/30/1 5

William Uibson Asia Bureau Environmental Oflicer

Approved: rn_

Disapproved: 0

CC: Project File MEO tracking system

OAA

Mary Melnyk