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PNPM Peduli PID May 2011 Page 1
PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.:75942 (The report # is automatically generated by IDU and should not be changed)
Project Name PNPM Peduli
Region East Asia Pacific Region
Country Indonesia
Sector Social Development
Project ID P126424
Implementing Agency TBD (To be Determined)
Environmental Screening
Category
B – Partial Assessment
Date PID Prepared 13 May 2011
Estimated Date of Appraisal
Completion
30 June 2011
Decision
Other Decision
I. Country Context
In President SBY’s second term, the Government adopted Indonesia's Medium-Term
Development Plan (RPJMN) 2010-2014, with the target of increasing economic growth to 7
percent and reducing the poverty rate to 8-10 percent by 2014. The RPJMN highlights the need
for growth with equity and a range of cross-cutting policies to ensure that development is both
sustainable and inclusive.
Indonesia managed to weather the global economic downturn of 2008-09 and regain its growth
momentum. The social impact of the global crisis was also limited in Indonesia. Despite strong
economic growth and falling poverty in the last decade, inequality is rising. The gap between the
poor and non-poor is also widening. The Gini coefficient has increased from 0.32 in 1999 to
approximately 0.41 in 2010. Growing intolerance of minority groups, including sexual and
religious minorities, threatens social cohesion and stability.
Social and economic exclusion, together with internalized and external stigmatisation prevents
marginalized individuals and groups from accessing the country’s mainstream development
programs. As a result, their needs remain invisible and opportunities for their participation and
contribution are limited. In addition they internalize this stigma and feel less entitled which
increases their sense of isolation from society. Positive engagement with the broader community
and government helps to influence perceptions about the potential of marginalized groups. This
in turn builds social harmony and social capital. In addition to being a Millenium Development
Goal (MDG), specific attention to marginalized women has a multiplier effect as it not only
promotes gender equality, but in turn brings about exponential social and economic benefits for
their families and wider communities.1.
1 Gender Equality as Smart Economics, A Work in Progress, World Bank, Washington 2011.
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PNPM Peduli PID May 2011 Page 2
II. Sectoral and Institutional Context
The Government of Indonesia’s National Program for Community Empowerment (PNPM
Mandiri) is the Government’s flagship program for poverty alleviation. It is a community-driven
development program that encourages local communities to participate in the planning process;
provides financial support to communities for direct and transparent funding of poverty-
alleviation activities; and enhances the partnership of central and local governments to best
provide services where most needed.
An AKATIGA study in 2010 on marginalized groups in PNPM Mandiri concluded that although
some marginalized groups received some benefits from poverty reduction programs, the broad
brush stroke of PNPM Mandiri was not able to effectively reach the most marginalized. They
were often left out of planning processes, or their needs and aspirations not reflected in
community decision-making.2 Marginalized individuals and groups are not always defined by
their economic status and can cross or overlap economic, cultural, religious, political and social
groups. These are the people with fewer assets, lack access to resources and information, have
lower levels of education, are poor and stigmatized for their sexual orientation or lifestyle choice,
of ethnic or religious minority, people living with disabilities and widows. But they are also
those who have limited access to services, social, economic and political life due to social
constructs. These individuals and groups lack resources, access to information and economic
opportunities, and confidence.
Since inception, PNPM Mandiri has been envisaged as a broad-based effort to reduce poverty.
Such an effort requires multi stakeholder participation and support for the program. This
includes the need for promoting greater involvement of civil society organizations (CSOs)3 in the
implementation of PNPM Mandiri. CSOs are recognized for their comparative advanTSGe in
reaching the most marginalized and working with and for these groups at the grassroots level in a
way that large poverty programs are often not able to.
The Government of Indonesia has a long and somewhat underappreciated track record of
cooperation with CSOs within PNPM Mandiri. From the time of its launch in 1998 (in form of
its precursor program, the Kecamatan Development Program - KDP), the program operations
and the participation of communities in PNPM Mandiri have been monitored by independent
journalists and CSOs. These entities were given “blind contracts” through PNPM Mandiri which
financed travel and publication costs, but required no prior review on behalf of the GOI for the
content of their reports. This mechanism supported the transparency of PNPM Mandiri’s
planning and implementation processes, and substantiated CSO’s in a de-facto “watchdog”
capacity. PNPM Mandiri has also had some limited experience in directly financing CSO
activities to further efforts to reduce poverty. There have been two pilot programs which provide
funding to the South Sulawesi CSO forum and to a church-based CSO in Papua. Similar
arrangements have led to the development of the large and highly successful Program for
Women Headed Households in Indonesia, or better known by its Indonesian acronym, PEKKA.
2 Akatiga (2010) Marginalization and PNPM Mandiri study.
3 Throughout this document, the term ‘Civil Society Organization’ and ‘CSO’ also refers to local Non-
Governmental Organizations (NGOs).
PNPM Peduli PID May 2011 Page 3
Although these pilot programs have had notable successes over the years, it has proven to be
challenge to coordinate their activities into a comprehensive poverty reduction strategy.
Global best practice shows that channeling resources through civil society organizations (CSOs)
that are working at the grassroots level with those that are marginalized enables the government
to engage with these individuals and groups. Under the facilitation of Indonesian CSOs,
marginalized groups are developing new skills; accessing services; learning about their rights;
and connecting with others (including the broader community and local government). Best
practice also shows that empowerment of citizens in this way requires a rights-based approach
rather than one only focused on meeting direct and immediate needs.
PNPN Peduli Project activities will directly support the World Bank’s Country Strategy Core
Engagement 3 - Community Development and Social Protection. Activities will foster inclusive
growth providing support services and technical assistance to marginalized groups currently not
able to access, or access easily, PNPM and other poverty reduction programs. The focus of the
CPS is investment in Indonesian institutions, including a focus on non-state actors, such as civil
society and community-based organizations. The project will provide capacity support to
Indonesian civil society organizations working on poverty reduction activities. Investment in
these institutions aims to improve accountability and build capacity of these non-state
organizations to meet Indonesia’s development objectives.
III. Project Development Objectives
In 2010, the Government of Indonesia conceptualized the PNPM Peduli program in response to
awareness that the broad brush stroke of PNPM program was not able to reach marginalized
populations4. The program is given strategic guidance from the Ministry for People’s Welfare
(Menko Kesra) and managed by the PNPM Support Facility (PSF).5 The program promotes a just
society where marginalised people are recognized, respected and valued with the freedom to act
and make choices about the quality of their lives.
The main development objective of PNPM Peduli is to strengthen the capacities of Indonesian
CSOs to reach and empower marginalized groups to improve their socio-economic conditions.
PNPM Peduli aims to fill gaps of government poverty reduction programs in reaching
marginalized groups by capitalising on the comparative advantage of local CSOs in reaching and
working with these groups. It seeks to tap into and learn from the innovative and inclusive
poverty reduction practices of Indonesian CSOs and strengthen their management capacities and
sustainability.
IV. Project Description
4 Akatiga (2010) Marginalization and PNPM Mandiri study. 5 The PSF is a mechanism established by the Government of Indonesia (GOI) and international development
partners to support PNPM Mandiri. Through the PSF, development partners provide high-quality, coordinated,
technical assistance, planning advice and dialogue, as well as targeted financial assistance to the GOI in its
management of PNPM Mandiri.
PNPM Peduli PID May 2011 Page 4
Program Components
The program will have the following components:
1. Grants. Under PNPM Peduli, grants will be awarded through a competitive selection
process by the PSF Trust Fund to around 3-4 Indonesian CSOs ( “Executing
Organizations” hereafter called EOs) that are either: a) national grant-making
organizations or NGOs working through a third-party (model A, or EO-A); or b) nation-
wide membership-based organizations working through their sub-national branches
(model B, or EO-B). Grants will have a co-financing component where the Executing
Organisation contributes either seed funding for activities or contribution in kind
(resources, staffing and so on). The contribution will be 5% on top of the total value of
the Grant Agreement. Contributions in kind will be based on their market value.
2. Sub-Grants. The EOs will then sub-grant to local CSOs (under EO-A) or allocate funds
to their sub-national branches (under EO-B) implementing poverty reduction activities
targeting marginalized groups. Thematic areas that can be considered for funding include:
livelihood support, access to governance, access to justice, education, health, water and
sanitation. Potential to expand the range of activities applicable under PNPM Peduli will
be reviewed at the end of the pilot phase (June 2012). Marginalized groups that will be
covered through the project are listed below in the Project Activities section. There will
be no geographic focus of the project, the focus being on reaching targeted marginalized
groups. However, EOs will have in place strategies for upscaling their reach and scope of
activities to ensure that CSOs/branches throughout most of Indonesia’s provinces are
eligible for sub-grants. Sub-Grants for direct support provided by Executing
Organisations to their implementing partners will comprise 80% of the total amount
allocated to their implementing partner.
3. Capacity-Building to Executing Organsiations. An important objective of PNPM
Peduli is to strengthen the capacities of Indonesian national and local-level CSOs.
Capacity-building support will be provided to EOs based on their specific needs. The
level and type of training for each EO will be assessed based on specific capacity
development plans. EOs will in turn be responsible for providing capacity-building
services to their sub-granted CSOs/branches. Support will be provided through
appropriate strategies including technical assistance, mentoring, on-the-job training,
workshops and seminar.
4. Capacity-Building to local CSOs/Branches. Capacity-building support will also be
provided to the sub-grant CSOs/branches. This will initially include developing activity
work plans and budgets, conducting monitoring and evaluation, and in reporting on sub-
grant funds and activities. The sub-granted CSOs/branches may also receive training on
issues such as fiduciary management, fundraising, proposal writing, organizational
learning, and governance and transparency. Capacity support provided by Executing
Organisations to their implementing partners will comprise 20% of the total amount
allocated to their implementing partner. This component will be implemented by Local
CSOs (for Model A), branches or affiliated organisations (for Model B) funded by sub-
grants awarded to them by EO. The activities should directly support poverty reduction
PNPM Peduli PID May 2011 Page 5
activities targeting highly marginalized groups. Sub-grants will support activities that
reach vulnerable groups not easily accessed through current poverty reduction programs,
such as PNPM. Poverty reduction activities are aimed to empower communities and
bring them together with the aim of reversing declining standards of living and poor
conditions. Of the programmatic costs, direct support comprises 75% of the sub-grant.
Program Phases
Phase 1 (pilot phase): January 2011 – June 2012. This phase will involve: the establishment
and signing of Grant Agreements between the World Bank and selected Executing
Organisations; provision of initial training to Executing Organisations; the establishment of sub-
grant/funding agreements between Executing Organisations and their selected partners; the
implementation of project activities by local CSOs/branches; and the provision of capacity
support to these local partners under the sub-grant/funding agreement. The pilot phase will have
a strong focus on learning and sharing and testing approaches to poverty reduction and reaching
marginalized groups. Executing Organizations and their implementing partners will support and
actively participate in the documentation of good practices and lessons learned managed by the
Technical Support Group (TSG). The end of this phase will involve an evaluation and review of
activities and extension of existing Grant Agreements – based on satisfactory performance - with
provision for additional funding to EOs for Phase 2. Executing Organisations will actively
participate in the review of the pilot phase that will inform full implementation of the project in
Phase Two. As required, the Operational Manual will be revised and fine tuned in preparation for
Phase Two.
Phase 2: June 2012 – 2014. Phase 2 will commence following evaluation of Phase 1, with
Executing Organisations continuing their existing sub-grant/funding agreements which will be
extended and additional funds allocated according to the proposed and approved Activity Plans
and linked budgets. Executing Organisations will implement their strategy to up-scale activities,
develop new partnerships and reach new marginalized groups, specifically focusing on gaps
identified through review at the end of Phase 1. Phase 2 will build on lessons learned and
recommendations from the review of Phase 1. Innovation and good practice will be brought to
scale. During Phase 2, PNPM Peduli will also seek to promote synergies between CSOs and
government programs and promote integration of innovative approaches to social inclusion of
marginalized groups into government poverty reduction government programs, including PNPM.
There will be no delay in the transition between implementation of activities Phase 1 and
continuation into Phase 2.
Program Design Approach
The pilot phase will be a “design implement” with a strong focus on learning by doing. The
results framework, program definitions, reporting templates and monitoring and evaluation
framework will be built in partnership with national CSO partners in the program start-up
promoting a participatory approach that builds on CSO experience and expertise and ensures
program mechanisms reflect the way grassroots CSOs work. An external review will be
conducted close to the end of the pilot phase to assess what’s working well and what can be built
on for Phase II to inform the design. It is expected that a results framework will be updated for
PNPM Peduli PID May 2011 Page 6
full implementation. The PDO and program outcomes may also be refined at this time and a full
baseline developed. The rationale for a “design implement” approach is that social inclusion and
marginalization is a new area of work and the first time the government and World Bank has
partnered with Indonesian CSOs to address issues of inclusion. The pilot phase will have a strong
focus on testing and learning what works and why.
The approach to designing and setting up implementation structures for PNPM Peduli is also
about forging a new business model for grant making with CSOs. This is about finding the right
process that ensures that our quality, fiduciary, and safeguards requirements are met, while
keeping the transaction costs for the CSOs at a minimum. This will involve educating CSOs on
what information is required in the early stages, and building their capacity to provide that
information in a form that is understandable for the Bank. Practical strategies have involved
consultations to gain a better understanding of how these organizations work and providing
Proposal Writing Clinics to educate CSOs on the requirements of the Bank. In this way, project
implementation can maintain a ‘light touch’ approach by working through existing CSO systems
as far as possible to fully captialise on their strategic advantage in working with and for the most
marginalized. As well as a learning process for the Bank and CSOs, through the PNPM Peduli
model, the government anticipates it will learn from the innovative approaches to poverty
reduction captured and to look for strategies to replicate and upscale these practices in other
poverty reduction programs, including PNPM Mandiri.
V. Financing
Multi Donor Fund (JMC) US$ 4,215,000
Total - US$ 4,215,000
VI. Implementation
Government of Indonesia: Indonesia’s Ministry of People’s Welfare (Menko Kesra) is a key
decision maker concerning the overall direction of the Program and provides strategic and
operational oversight and guidance to the program through Pokja Pengendali. This includes
involvement in periodic reviews of the program and helping to draw in those ministries under its
coordination to support implementation of the Program and learn from the knowledge generated.
Strategic oversight is also provided by Indonesia’s National Agency for Development Planning
(BAPPENAS).
Joint Management Committee (JMC): JMC is the governing body of the PSF Trust Fund and
comprises representatives of Government and donors which provides periodic inputs on the
strategic direction and oversight of Peduli, reviews progress of the program. It also has the key
decision making role concerning the funding of the program, including approvals for any
additional financing required and new EO partners.
PNPM Support Facility (PSF): The PSF is guided by the Government of Indonesia and JMC in
making strategic decisions about the program based on program reports, learning and
consultation with implementing CSO partners, other stakeholders and the TSG. The PNPM
PNPM Peduli PID May 2011 Page 7
Peduli Coordinator based at the PSF manages the Grant Agreements with EO and recipients of
Innovations Grants, in accordance with World Bank Fiduciary Guidelines and Safeguards
requirements as set out in the Program Operations Manual. It is accountable for funds
disbursement and management, ensuring information flow to Government of Indonesia and JMC
and ensuring that decision making bodies have a full and open account of the Program’s progress
and issues arising. PSF is responsible for ensuring that EO and TSG are acccountable for their
their contractual and milestone obligations. It is the key decision maker regarding program
strategies, processes and tools which are developed in consultation with EOs and will address
any issues of misconduct or poor performance among EOs, Strategic Partners or TSG.
Technical Support Group: The TSG will be guided by the Program Operations Manual and
adhere to all governance provisions and program policies. While the TSG does not have
responsibilty for financial management, it must be fully aware of Peduli financial procedures and
requirements to the extent that it can report any identified issues to PSF for immediate action.
The TSG will become the main point of contact between the EO and the PSF and will have the
key decision making role regarding quality of implementation and reporting. The TSG will
address any issues of misconduct or poor performance among team members, other than cases of
fraud which are addressed by PSF.
Executing Organizations and CSO partners: Executing Organizations and their CSO partners are
guided by their Program Operational Manual (POM) and Project Management Manuals (PMM)
respectively which align with the Peduli POM and World Bank requirements. EOs will decide
their own program structures and implementation strategies and process, select their local
partners using agreed criteria and address any issues of misconduct or poor performance among
EO staff and/or CSO partners. Financial systems have been developed with EOs in line with
World Bank requirements and they are responsible for addressing any fiduciary issues with their
Partners. CSO partners are responsible for working in partnership with individuals and groups to
develop and implement activities working with the most marginalized.
PNPM Peduli PID May 2011 Page 8
This is shown pictorially below in Diagram 1.
Diagram1.
Grant Mechanism
PNPM Peduli will be implemented through two grant mechanisms:
Grant Model A. The World Bank will award Grants to Indonesian grant-making
organizations (Executing Organisations, EO-A) that provide support to and work through a
third party organization (ie. local CSOs). Grants will be used by EOs to: a) strengthen their
own management and operational capacity and b) provide sub-grants to local CSOs. The
sub-grants from EO-A to local CSOs will: a) support sub-grantees’ poverty reduction
activities with marginalized groups; and b) strengthen their management and
organizational capacity.
Grant Model B. Through a separate process, the World Bank will also award Grants to
Indonesian nation-wide organizations (Executing Organisations, EO-B) that provide
support to and work through sub-national branches of their organization. Grants will be
used by EO-B to: a) strengthen their own management and operational capacity and b)
allocating funding to their sub-national branches. The funding from EOs to their sub-
Pokja Pengendali (BAPPENAS )
Technical Support Group (TSG)
Executing Organization
(work thru 3rd
party org)
CSO
PSF Secretariat (World Bank)PNPM Peduli Coordinator
Executing Organization
(work thru 3rd
party org)
Executing Organization
(work thru sub-national branches)
Executing Organization
work thru sub-national branches)
CSO CSO Sub-national branch
Sub-national branch
Sub-national branch
Sub-national branch
Indicate Grants/Sub-GrantsIndicate Lines of Technical Assistance
Operational Oversight
Beneficiaries
Indicate Contract
GRANT MODEL A GRANT MODEL B
CSO
PNPM Peduli PID May 2011 Page 9
national branches will: a) support poverty reduction activities of sub-national branches
with marginalized groups; and b) strengthen their management and organizational capacity.
Grant Eligibility
In order to be eligible to receive PNPM Peduli Grants, the Executing Organisation under Grant
Model A and B must as a minimum be legally registered entity that has a legal basis for
operation in Indonesia; must be working across more than one province; must be working with
more than one of the target marginalized groups; and must be supporting a range of poverty
reduction activities. In addition, the specific requirements include:
Fiduciary
Have existed as an organisation for the past two years and have documented external
audit reports for the past two years;
Have an Operation Manual outlining clear standard financial and operational procedures
for program and financial management;
Be willing and able to establish a separate account in the name of the Project or have an
accounting system to adequately separate Project funds; and
Be willing and able to be audited by an external independent auditor on an annual basis
for the duration of the Grant Agreement.
Grant Model A: Capacity and Experience
Established and strong working partnerships with local CSOs working supporting poverty
reduction activities to targeted marginalized groups;
Able to identify potential CSO projects and activities consistent with the objectives of
PNPM Peduli in reaching the most marginalized;
Demonstrated experience strengthening the capacity of local CSO networks evidenced by
reference letters from recipients for recent programs;
Demonstrated experience in grant making to local CSOs and existing grantees carrying
out relevant project activities;
Capacity and willingness to upscale support for local CSOs over time through increased
number and reach of sub-grants;
Demonstrated staffing and resources that will be allocated (either existing or contracted
for the project purposes) to ensure on-granting is well managed;
Grant Model B: Capacity and Experience
Have established sub-national branches of the organisation supporting poverty reduction
activities to targeted marginalized groups;
Established and strong working partnerships with local grassroots and community groups
at the sub-national level working in poverty reduction in the priority themes evidenced by
long term engagement, identification of potential partners and projects and demonstrated
understanding of local poverty reduction activities;
Propose projects that will be carried out by their sub-national branches that target the
most marginalized groups, propose a logical implementation strategy for activities,
propose a credible M&E systems and sound budget;
Capacity and willingness to upscale support for sub-national branches over time through
PNPM Peduli PID May 2011 Page 10
increased number and reach of sub-grants;
Demonstrated staffing and resources that will be allocated (either existing or contracted
for the project purposes) to ensure on-granting is well managed;
Governance Requirements
Have a credible and transparent organisation structure that ensures decision-making
processes are consultative and the Board decisions and operations are transparent to
members and beneficiaries.
Grant Recipient Selection Process
The PNPM Peduli team will prepare a number of documents to support the process of selection
and appointment of Executing Organisations. These include: mapping and short listing
documentation to invite shortlisted eligible organizations to submit full proposals, Selection
Criteria for Executing Organisations, Terms of Reference (ToR) for Executing Organisations,
Financial Proposal Template, Technical Proposal Template, Appraisal Criteria for Executing
Organisations, CSO Selection Worksheet (which will include a financial and procurement
assessment), and PNPM Peduli Operational Manual. The selection process for Executing
Organisations will involve the following steps, shown pictorially below:
PNPM Peduli PID May 2011 Page 11
Sub-Grant Eligibility
In order to be eligible to receive PNPM Peduli Sub-Grants or funding agreements, organisations
under Grant Model A as a minimum the organisation must:
Fiduciary Requirements
Be a registered entity recognised either within their community or have a legal basis for
operation;6
Be able and willing to show accounts for the past year;
Be able and willing to be audited annually by an external independent auditor for the
duration of the Sub-Grant Agreement; 7
Be willing and able to use the Executing Organization’s grant instruments (Financial and
6 Organisations that are not registered can obtain a letter from the local government or confirming their that they are
recognised as an organisation carrying out activities as they claim.. 7 For smaller organisations who have not participated in an external formal audit, training will be provided in
preparation for the first audit at the end of the 12 month period.
1.Mapping of eligible
organisations using criteria
and ranking. Verification of
mapping with CSO experts.
Short-listing of eligible
organizations invited to
submit pre-proposal forms.
2. Pre-Proposal Submission. Organisations meeting basic
criteria submit form outlining
core requirements related to
their operations and structure.
Organisations meeting all
criteria invited for full proposals.
3. Initial Meeting on Full
Proposal. Shortlisted
potential EOs receive a
project briefing and have
opportunity to ask questions
about proposal process or
project.
4. Proposal Writing Clinic
for shortlisted organisations to
educate them on required
information for proposal
sTSGe in the correct Bank
format.
.5. Technical Evaluation
Committee. TEC established
(inviting government WB
experts and selected CSO
experts) to assess proposals and
select Executing Organisations.
6. Financial and Procurement
Assessments & Procurement
Plan for Executing Organisation
involving anti-corruption and
safeguards teams.
Recommendations made to
Legal Team.
7. Grant Agreement Drafted
by Legal Team incorporating
recommendations. Grant
Agreement finalised with
organisation. Activities begin.
PNPM Peduli PID May 2011 Page 12
Management Manual) and to meet their fiduciary and reporting requirements;
Be willing and able to establish a separate account in the name of the Project;
Capacity and Experience
Have strong community partnerships demonstrated by long term engagement and strong
understanding of the poverty issues in their working environment;
Be currently engaged in poverty reduction activities working with marginalized groups;
Have a clear strategy presented for how they target and work with the most marginalized
groups; and
Propose activities that demonstrate a logical implementation strategy, and sound budget.
Governance and Accountability Requirements
Have a clear organisational structure in place
Have mechanisms to involve beneficiaries in decision-making and poverty reduction
activities (this may include involvement in monitoring and reporting activities, planning,
developing proposals, attendance at organisational meetings and how they make
information readily available through newsletters, open meetings and so on).
Under Grant Model B, Executing Organisations, as nationwide organisations, will have internal
mechanisms to work with branches or affiliated organisations and select suitable partners.
Executing Organisations will ensure eligible activities are selected with suitable branches that
meet the following:
Fiduciary Requirements
That the branch implementing the activities is officially connected to the Executing
Organisation;
Be able and willing to show accounts for the past year;
Be able and willing to be audited annually by an external independent auditor for the
duration of the Funding Agreement; 8
Have financial and management systems in place from the Executing Organization’s (i.e.
using the EOs Financial and Management Manual/systems) and have demonstrated
ability to meet their fiduciary and reporting requirements;
Be willing and able to establish a separate account in the name of the Project;
Capacity and Experience
Have strong community partnerships demonstrated by long term engagement at the local
level and strong understanding of the poverty issues in their working environment;
Be currently engaged in poverty reduction activities working with marginalized groups;
Have a clear strategy presented for how they target and work with the most marginalized
groups; and
Propose projects that demonstrate a logical implementation strategy, and sound budget.
8 For smaller organisations who have not participated in an external formal audit, training will be provided in
preparation for the first audit at the end of the 12 month period.
PNPM Peduli PID May 2011 Page 13
Governance and Accountability Requirements
Have a clear organisational structure in place and mechanisms to involve beneficiaries in
decision-making and poverty reduction activities (this may include involvement in
monitoring and reporting activities, planning, developing proposals, attendance at
organisational meetings and how they make information readily available through
newsletters, open meetings and so on).
Under both grant models, the selection process for all sub-grants will follow the existing systems
of the Executing Organisations but ensure that local partners meet the basic criteria above and
selected poverty reduction activities are in line with the objectives and priorities of PNPM Peduli
in reaching the most marginalized. Process for selection of partners and activities must be well
documented and transparent. Executing Organisations may carry out a mapping exercise of
existing and new partners to identify potential poverty reduction activities, and they will be
responsible for providing capacity support to local partners to support them in the development
of proposals with well planned timelines, realistic budgets and quality monitoring and evaluation
frameworks.
Executing Organisations will be responsible for carry out capacity assessments of local
CSOs/branches selected will work in partnership to develop Capacity Development Plans that
will be carried out for the duration of the sub-grant/funding agreement. Executing Organisations
can use existing templates within their organization to establish funding agreement but must
ensure they include standard World Bank clauses for grant agreements as outlined in the
project’s Operational Manual. Executing Organisations will also be responsible for providing
standard training on PNPM Peduli and relevant World Bank guidelines on financial
management, procurement, safeguards and anti-corruption as outlined in the project’s
Operational Manual.
PNPM Peduli Activities
There are two broad types of activities supported by sub-grants/funding to local branches under
PNPM Peduli. Support will be provided for activities that address specific and identified needs
of a marginalized individual or community and directly provide for this need. This may include
providing equipment for disabled persons or medicine for people suffering from infectious or
terminal diseases, access to public and/or private services, and access to economic opportunities.
Here the ultimate objective is to assist individuals to improve their situation and condition so that
they can fulfill their own potential.
Support will also be provided for activities that empower individuals to participate in order to
effectively advocate or articulate their individual needs to those who can influence outcomes.
This may include activities that focus on strategies for marginalized individuals to become
involved in community planning and decision-making processes. Here the ultimate objective is
to have the specific needs or aspirations of marginalized individuals heard and addressed, and to
integrate into mainstream society so that they can fully participate.
Ineligible Activities
PNPM Peduli PID May 2011 Page 14
Sub-grants will not support the following: revolving funds; micro-credit programs; charity nor
provide welfare payments; activities banned by PSF donor policies or by Indonesian law;
government programs, which PSF finances through Windows 1 &2; political activities; purchase
of land; activities involving major construction works; and the purchase of large items that are
not part of a broader project or activity approved for funded under PNPM Peduli.
Target Groups
Individuals and communities supported by project activities may include, but are not limited to:
street children, orphans, exploited children who may be sexually abused, youth in conflict with
the law or suffering drug abuse, female-headed households, victims of domestic violence and of
community abuse, sex workers, victims of conflict, people living with HIV and AIDS, people
living with disabilities related to leprosy, poor ethnic minorities, handicapped persons and other
disabilities, garbage collectors, peddy-cab drivers (bajaj and becaks), domestic workers subject
to exploitation, poor migrant workers, trafficked persons, transgendered persons, street beggars,
landless farmers, rural fisher folk, poor plantation laborers and poor indigenous peoples.
Accountability Mechanisms
Downward accountability to these marginalized groups will be ensured through: mechanisms
developed by selected CSOs and sub-national branches to involve beneficiaries in project
planning, reporting, monitoring and evaluation; projects selected that are based on community
needs and target activities to meet these identified needs; collection of stories and case studies to
document and share good practice in downward accountability across the project network
managed by the Technical Support Group (TSG) supported by the Executing Organisations and
local CSOs/branches; a survey conducted of beneficiaries to provide feedback to the project
cycle managed by the TSG and supported by local CSOs/branches; and a complaints handling
mechanism developed and managed by the TSG making communication about the project
accessible at all levels, including beneficiaries and the general public.
Grant and Sub-Grant Sizes
An initial USD 4 million has been allocated to the start-up pilot phase to support activities
managed by EOs. Grants awarded to EOs will not to be of a value greater than the annual
amount the EO has previously programmed under other donor funded projects. Sub-grant sizes
will vary depending on size and capacity of local CSOs as well as activities being carried .It is
expected that the sub-grants will vary between USD 20,000 up to USD 100,000.
VII. Safeguard Policies (including public consultation)
PNPM Peduli is a pilot project under the PNPM umbrella, with the main Government
counterparts, Menko Kesra and Bappenas, providing strategic oversight to the program. The
safeguards framework therefore builds upon the lessons learned from safeguards management in
PNPM under the umbrella guideline of Implementation Guideline of Social and Environmental
Safeguards (IGSES), which similarly funds small-scale projects at the local level. The updated
IGSES with several improvement and updates will be used as reference for the implementation
of PNPM Peduli.
PNPM Peduli PID May 2011 Page 15
There are no significant long-term potential impacts expected to be triggered by this project.
PNPM Peduli is implemented by Executing Organizations which are responsible for screening
possible environmental and social impacts of their sub-grant activities during planning. If any
impacts are identified they are provided with supervision and guidance for developing and
implementing measures to mitigate the impacts. Specific guidelines for environmental
management and Indigenous People safeguards issues will be referred to updated IGSES 2012.
The safeguards screening, implementation and reporting will be outlined in the PNPM Peduli
Operational Manual and reference to these guidelines will be included in the sub-grant manuals.
The World Bank will provide initial safeguards training to EOs and will continue do so during
project implementation. Following the provision of train-the-trainer training EOs may be in a
position to provide safeguards training to their sub-grantees so that they have the capacity to
manage any potential safeguards risks. Close supervision and monitoring from the Task Team
and safeguards team is being provided during project implementation, specifically for safeguards
compliance.
In the initial start-up the World Bank will conduct a safeguards assessment of the EOs’ capacity
to identify and mitigate safeguards risks. This will be followed by safeguards training on
safeguard policies and how to manage potential environmental and social risks. The PNPM
Peduli Operational Manual will include specific environmental and social guidelines for
screening site-specific impact. The EOs’ progress implementation reports will contain a section
on safeguard implementation for applicable cases.
As most projects will be small-scale, there are no large-scale, significant, or irreversible impacts
anticipated to occur from these activities. Most of the sub-grants in PNPM Peduli will be
focused on capacity and skills training to marginalized beneficiaries, advocacy, legal aid and
participatory governance. The few sub-projects that will involve minor construction will follow
solid engineering designs and construction practices modeled on lessons learned from the PNPM
safeguards approach. Any potential negative environmental impacts will therefore typically be
negligible, site-specific, small in scale and can be managed locally by adopting screening criteria
and adequate mitigation measures as outlined in the Operational Manual and specifically in the
Environmental and Social Codes of Practices (ECOPs).
Several of the sub-projects specifically target indigenous people with the aim of improving their
economic and social conditions. All sub-grant projects, including those working with indigenous
peoples, are expected to be prepared with free prior and informed consultation; with broad
community support throughout the project cycle, in design, implementation, monitoring and
evaluation. These processes are described in the sub-grant proposals and tracked through
quarterly reports (templates developed by the program). The Indigenous Peoples Planning
Framework will contain the principles and elements for identifying potential negative impacts, a
framework for implementing free prior and informed consultation with the effected indigenous
communities in each stage of the subproject cycle; institutional arrangements for screening
project supported activities, evaluating their effects on indigenous communities; and monitoring
and reporting arrangements.
PNPM Peduli PID May 2011 Page 16
Safeguard Policies Triggered Yes No
Environmental Assessment (OP/BP 4.01) X
Natural Habitats (OP/BP 4.04) X
Forests (OP/BP 4.36) X
Pest Management (OP 4.09) X
Physical Cultural Resources (OP/BP 4.11) X
Indigenous Peoples (OP/BP 4.10) X
Involuntary Resettlement (OP/BP 4.12) X
Safety of Dams (OP/BP 4.37) X
Projects on International Waterways (OP/BP 7.50) X
Projects in Disputed Areas (OP/BP 7.60) X
VIII. Contact point at World Bank and Borrower
World Bank Contact: Kevin Tomlinson
Title: Task Team Leader
Tel: (62) 213148175
Email: [email protected]
Implementing Agencies
Association for Community Empowerment Komplek Depkes, Jl. H. Umaidi No. 39 A, Rawa Bambu 2 Rt.010 Rw. 007, Pasar Minggu, South Jakarta Tel. +62 21-85912967; 85912945 Contact person: Dra. Titik Hartini, M.Si (Executive Director) Kemitraan Jl. Wolter Monginsidi No. 3 Kebayoran Baru South Jakarta 12160 Tel. +62 21-72799566 Contact person: Wicaksono Sarosa (Executive Director) Lakpesdam/NU Jl. H. Ramli No. 20A Menteng Dalam, Tebet Jakarta 12870 Tel. +62 21-8298855, 8281642, 83796120 Contact person: YahyaMa'shum (Chairman of Board)
IX. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop