Tangguh LNG Project E&S External Panel II (2011-2016) · Mid-term Review RevD final _.docx ... (AMDAL) commitment. The overall objective of this report is to assess the direction

Tangguh LNG Project E&S External Panel II

(2011-2016)

Integrated Social Programme 2 (ISP2) Mid-Term Review

August 2014

BP Berau-Lenders

334779 TRD EFR 02 D

C:\Users\mcl63364\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\DRDZDCPC\Draft Tangguh EP ISP Mid-

20 August 2014

Tangguh LNG Project E&S External Panel II (2011-2016)


Tangguh LNG Project E&S External Panel II (2011-2016)


August 2014

BP Berau-Lenders

Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom

T +44(0) 1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com

Tangguh LNG Project E&S External Panel II (2011-2016) Integrated Social Programme 2 (ISP2) Mid-Term Review

334779/TRD/EFR/02/D 20 August 2014 C:\Users\mcl63364\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\DRDZDCPC\Draft Tangguh EP ISP Mid-term Review RevD final _.docx

Revision Date Originator Checker Approver Description Standard

A 26.05.14 Marielle Rowan, Tom Streather, Nanang Ananto, Jacqueline Hamadi

Lucy Morton Lucy Morton First Draft

B

04.07.14

Tom Streather Nicola Davies

Lucy Morton

Lucy Morton

Final Draft

C 04.08.14 Marielle Rowan Lucy Morton Lucy Morton Final

D 20.08.14 Tom Streather Lucy Morton Lucy Morton Final for Lenders

Issue and revision record

This document is issued for the party which commissioned it and for specific purposes connected with the above-captioned project only. It should not be relied upon by any other party or used for any other purpose.

We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties.

This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it.



Chapter Title Page

Acronyms & Abbreviations i

Executive Summary iii

1 Introduction 1

1.1 Overview _________________________________________________________________________ 1 1.2 Background to Tangguh LNG Project ____________________________________________________ 1 1.3 Review Objective, Aims and Structure ___________________________________________________ 2

2 Approach and Methodology 4

2.1 EPII Approach to Evaluating ISPII ______________________________________________________ 4 2.2 External Panel Review Methodology ____________________________________________________ 6

3 EPII Review of University of Indonesia Mid-Term Review Findings 7

4 EPII Review of ISP2 Effectiveness 9

4.1 Overview _________________________________________________________________________ 9 4.2 Review against Project Compliance Requirements _________________________________________ 9 4.3 Review of ISP2’s Strategic Approach ___________________________________________________ 10 4.3.1 Overview ________________________________________________________________________ 10 4.3.2 Appropriateness of Key Characteristics _________________________________________________ 11 4.3.3 Quality of ISP2 Monitoring and Evaluation (M&E) _________________________________________ 11 4.3.4 Effectiveness of ISP2 Budgeting and Staff Resources ______________________________________ 12 4.4 Evaluation of ISP2 Activities and Outcomes ______________________________________________ 12 4.4.1 Overview ________________________________________________________________________ 12 4.4.2 Governance ______________________________________________________________________ 13 4.4.3 Communication and External Affairs (C&EA) _____________________________________________ 14 4.4.4 Livelihoods _______________________________________________________________________ 15 4.4.5 Health ___________________________________________________________________________ 16 4.4.6 Education and Vocational Training _____________________________________________________ 18 4.5 Progress against Overall Goal ________________________________________________________ 19

5 Managing Unintended Outcomes 21

5.1 Overview ________________________________________________________________________ 21 5.2 Jealousy _________________________________________________________________________ 21 5.3 Maintenance ______________________________________________________________________ 21 5.4 Consultation Fatigue________________________________________________________________ 23

6 Challenges of Different Stakeholder Perspectives 24

6.1 Overview ________________________________________________________________________ 24 6.2 Government Perspectives & Capacity Variations __________________________________________ 24 6.3 Adat Community’s Perceptions of Marginalisation _________________________________________ 25

Contents



6.4 Other Oil & Gas Companies in the Area _________________________________________________ 25 6.5 NGOs entering the Scene ___________________________________________________________ 25

7 Options for Redesigning ISP2 27

7.1 Overview ________________________________________________________________________ 27 7.2 BP’s Proposed Tangguh Sustainable Development Plan (TSDP) _____________________________ 27 7.3 External Panel Ideas for Redesigning ISP2 ______________________________________________ 29 7.3.1 Overview ________________________________________________________________________ 29 7.3.2 Communication Activities ____________________________________________________________ 29 7.3.3 Community Investment Programme Simplification _________________________________________ 30 7.3.4 Quick Wins and Innovation ___________________________________________________________ 30 7.3.5 Additional Suggestions ______________________________________________________________ 32

8 Concluding Comments 33

Appendices 34

Appendix A. EPII Social Team ISP2 Effort & Achievement Ratings ______________________________________ 35 Appendix B. Participation and Adoption Ladders ____________________________________________________ 42 Appendix C. Summary of Key Suggestions ________________________________________________________ 43


i


Acronyms & Abbreviations

Acronym Description

ADB Asian Development Bank

AGI Acid Gas Incinerator

AIS Alien Invasive Species

BC British Council (BP’s main Education Programme partner)

BOD Biological Oxygen Demand

CA Corrective Action

CAPs Community Action Plans

C&EA Communications & External Affairs

CEMS Continuous Emissions Monitoring System

CFO Community Financial Officer

CFR Case Fatality Rate

Co-op Cooperative

DAFW Days Away From Work

DAV Directly Affected Villages

DF Dimaga Foundation

EMP |Environmental Management Plan

EMS Environmental Management System

EP External Panel

E&S Environmental and Social

FEED Front End Engineering Design

GoI Government of Indonesia

Gvt. Government

H&S Health and Safety

IAV Indirectly Affected Villages

ICBS Integrated Community Based Security

IPIECA International Petroleum Industry Environmental Conservation Association

IPSI Indigenous Peoples and Social Issues

ISO International Standards Organisation

ISP Integrated Social Programme

JBIC Japan Bank for International Cooperation

JNCC Joint Nature Conservation Committee

KK Kepala Kampung (Village Leader)

KPI Key Performance Indicator

LARAP Land Acquisition and Resettlement Plan

LAT Lowest Astronomical Tide

LNG Liquefied Natural Gas

MoE Ministry of Environment

MoU Memorandum of Understanding


ii


Acronym Description

MCC Mediatama Ciptacitra (BP’s main Health Programme partner)

NC Non Compliance

NOX Nitrogen Oxides

OB Onar Baru

OL Onar Lama

PV Photovoltaic

QPR Quarterly Performance Review

RAV Resettlement Affected Villages

RIF Recordable Incident Frequency

SO2 Sulphur Dioxide

SOP Standard Operating Procedure

STP Sewage treatment Plant

TIAP Tangguh Independent Advisory Panel

TMB Tanah Merah Baru

TSDP Tangguh Sustainable Development Project

UGM Universitas Gajah Mada (BP’s main Governance Programme partner)


iii


Introduction

This report presents the second External Panel’s (EPII) mid-term review of the Integrated

Social Programme 2 (ISP2) for the Tangguh LNG facility (Tangguh LNG or the Project),

situated on the south side of Bintuni Bay, Kabupaten Teluk Bintuni, Papua Barat

Province, Indonesia. The ISP2 is also referred to as the Community Investment

Programme (CIP) and recognised as an Indigenous People Development Plan. It is part

of the Project’s social and environmental impact assessment (AMDAL) commitment.

The overall objective of this report is to assess the direction and effectiveness of ISP2

particularly with regard to compliance issues and requirements. Recommendations are

made for consideration in the process of revising the ISP that will occur in 2014 as part of

the TEP.

Approach and Methodology

The EPII team has undertaken this mid-term review based on a shared understanding

that the pursuit of community development through ISP2 is essential for the Project, but

also not an exact science. Even under ideal circumstances, outcomes may not be

achieved because the project has only a certain portion of the complex number of

societal and contextual factors under its control.

To address these challenges, EPII has reviewed the ISP2 on a variety of aspects related

to effectiveness, including: compliance with project requirements; appropriateness of

strategic approach; progress against overall goals; unintended outcomes; and, the

challenges of different stakeholder perspectives. EPII’s findings are based on data

collected during EPII monitoring audits undertaken in 2011, 2012 and 2014, which

involved a one week site visit to local project affected communities on each occasion and

document review beforehand.

EPII Review of University of Indonesia (UI) Mid-Term Review

The UI study ranking scores of ‘minimum’ or ‘adequate’ performance in delivering the

desired outcomes in each programme suggest under achievement at a glance, however

the evaluation concludes that ISP2 implementation is generally on track as planned,

although many outcomes are out of reach. EPII believes that the low scoring outcome

Executive Summary


iv


delivery ranking findings hide not only BP team’s large effort and resources dedicated to

effective community relations and development outcomes, but also some important

successes in ISP2 outcome delivery.

EPII Review of ISP2 Effectiveness

Through EPII’s first three annual Operational Compliance Monitoring Reports only two

non-compliances (in 2012 and 2013) were identified in relation to social issues, and they

both centred on the same issue, implementation of the community grievance

mechanism. There were no ISP related non-compliances identified in the 2014 audit.

Recommendations related to other potential ISP issues were made following this audit

and these have been used to inform this report.

In terms of ISP2’s strategic approach of attempting to move from: ‘development for the

community’, to ‘development with the community’, and finally to ‘development by the

community’; EPII finds the program is at “development with the community” on the whole

and that this is appropriate at this stage. We also found that the amount of monitoring

and evaluation activities, the budgets and staff resources are appropriate and relevant.

The qualitative results of EPII evaluation of each of the five programmes is summarised

below:

Programme Evaluation comment on ‘achievement’ and ‘effort’

Governance For at least half of the activities there has been good effort and half the outcomes have had evidence of satisfactory achievements. A majority of DAVs appear to have learned how to undertake participatory planning through the many planning workshops and mentoring activities implemented by BP. There is strong evidence of local communities using community action plan (CAP) funding from BP to meet village identified priorities

Communications and external affairs (C&EA)

Satisfactory efforts have been made on more than half the activities but the outcome achievement is less obvious. EPII believes that while the links with communities exist, more effort needs to be given to the messages communicated. Feedback should be provided on activities undertaken in villages and efforts should be made to ensuring consistent messages are shared across the beneficiaries group. This will combat the apparent consultation fatigue evident to EPII in the 2014 site visit.

Livelihoods There is plenty of evidence regarding satisfactory effort and achievements for the livelihoods program. The Universitas Gajah Mada (UGM - BP’s main Governance Programme partner) Baseline survey of 2012 identified that all DAVs are above poverty line which is a positive reflection on both the ISP2 generally and the livelihood program in particular. The cooperative activities are benefiting their female members and a better rhythm between community supply and site demand for produce is being achieved


v


Programme Evaluation comment on ‘achievement’ and ‘effort’

Health In all activities, there is evidence of a high amount of effort and outcome achievement for the health program, especially in relation to the Malaria prevention and sanitation programmes. There have been varying results depending on the village location, availability of clean water provision and hygienic conditions.

Education and vocational training

Satisfactory effort to implement planned activities and achieve outcomes has been witnessed by EPII for the first three years and there is strong evidence of achievement too, especially in school attendance and development of the Sampoerna Foundation flagship school in Tanah Merah Baru. There are more quick wins – for example the provision of books to schools - and links to Tangguh LNG’s skills development activities that can be made.

While there are differences of perception about specific ISP2 activities among

communities, generally EPII has witnessed positive changes in infrastructure and

services. EPII has often heard statements from community members testifying to

improved wellbeing from the BP programming. As such EPII feels that on the whole,

ISPII is on track in meeting its overall goal of improving quality of life.

Managing Unintended Outcomes

EPII has identified the following unwanted and unintended outcomes of ISPII:

� Jealousy: within villages and among villages is noticeable, especially in relation to

livelihood opportunities

� Maintenance: is an issue for ISP2 being created as a result of the positive

infrastructure development, and is often are a reflection of both dependency and

expectations about BP’s responsibilities

� Consultation fatigue: appears to have resulted from the amount of M&E activities

combined with the TEP AMDAL consultation undertaken in 2013 and 2014

These issues will require increased attention and management by BP.


vi


Challenges of Different Stakeholder Perspectives

EPII recognises that BP has a balancing act to manage the perspectives and influence of

a range of stakeholders. Key differences exist between:

� The north and south shore communities

� The various levels of government namely village, district and regency

� Adat representation and elected government administration

� What individuals see as state and private sector responsibilities

� Oil and gas companies’ approach to interacting with local communities and

government partners

� The project and NGOs

These issues will also require increased attention and management by BP going forward.

Options for Re-Designing ISP2

EPII agree with a number of BP’s ideas for redesigning ISP 2, namely: switching the ISP

focus from DAVs, to geographical areas and indigenous peoples; moving services off

site into the local communities; greater emphasis on local skills development; and,

introduction of environmental stewardship activities. EPII also identified the North Shore

Housing (NSH) program idea being considered by BP as being high risk.

The report also presents a number of EPII’s own ideas , including: Providing greater

focus on communicating results and mutual responsibility; community investment

programme simplification and grouping under one umbrella; and, ‘quick-wins’ and

innovation, for example using community scale renewable energy for local infrastructure.

Concluding Comments

The review found that Tangguh LNG ISP2 staff and Project leadership recognise the

importance of community relations. They understand the need to work in tandem with

local communities not only because of AMDAL requirements but also to help address the

existence of many impoverishment risks in the working area.


vii


In conclusion, EPII finds ISP2 to be satisfactory in the relevance of its goals and

approach. There is evidence of large levels of efforts and some good outcomes. Ways to

improve the outcomes are being explored and there are some good ideas on the table,

and EPII has contributed further ideas for consideration.



1

1.1 Overview

This report presents the second External Panel’s (EPII) mid-term review of the Integrated Social

Programme 2 (ISP2) for the Tangguh LNG facility (Tangguh LNG or the Project). EPII has been appointed

to undertake annual independent environmental and social monitoring of the Project’s compliance with

project requirements during the operational period between 2011 and 2016. The first External Panel (EPI)

previously produced a mid-term review of ISP1 in May 2009 during the construction period.

The ISP2 is also referred to as the Community Investment Programme (CIP) and recognised as an

Indigenous People Development Plan. It is part of the Project’s social and environmental impact

assessment (AMDAL) commitment. ISP2 was evolved from ISP1 which originally contained 14

programmes1. It uses the AMDAL as a reference document, emphasises local participation and aims to

ensure benefits for local communities, especially indigenous peoples. In comparison to ISP1, ISP2 is a

guide for Project implementation and activities are streamlined into five main programmes designed to

mitigate the social risks of the Tangguh LNG operations. The five main ISP2 programs are: governance,

communication and external affairs, livelihoods, health and education and vocational training.

1.2 Background to Tangguh LNG Project

Tangguh LNG is situated on the south side of Bintuni Bay, Kabupaten Teluk Bintuni, Papua Barat

Province, Indonesia (see Figure 1.1 overleaf). The Project is extracting natural gas from large offshore

reservoirs and piping it to an onshore LNG plant for conversion to LNG, after which it is exported by

shipping tanker to markets in the Asia-Pacific region and beyond. Construction commenced in 2005 and

the first cargo of LNG was shipped in the second quarter 2009. Tangguh LNG is anticipated to have an

operational lifespan of more than 20 years with the potential for expansion depending on reservoir

performance and proving of additional reserves.

Since 2012, BP has been in the process of undertaking an environmental and social assessment (AMDAL)

for an additional production train, referred to as the Tangguh Expansion Project (TEP). In 2015 the

Engineering, Procurement and Construction (EPC) Contract will be awarded for the construction of third

train (Train 3), two more offshore platforms, a new receiving facility, a second jetty and other associated

infrastructure. The TEP is expected to be commissioned in 2018 and is costing an additional US$12 billion.

The TEP will result in additional and new environmental and social impacts and therefore requires a new

AMDAL process, which will result in new project requirements for environmental and social management

and monitoring, and the Project plans, systems and procedures will need to be updated accordingly.

1 INCLUDE PROGRAMMES

1 Introduction



2

Figure 1.1: Project Location and Affected Communities

Indirectly Affected Villages far from the project =

Indirectly Affected Villages near the project =

Directly Affected Villages (DAV) =

1.3 Review Objective, Aims and Structure

The overall objective of this report is to assess the direction and effectiveness of ISP2 particularly with

regard to compliance issues and requirements. The approach and methodology adopted for doing this is

outlined in Chapter 2

EPII was requested to comment on the mid-term review produced by the University of Indonesia (UI), with

some sampling checks at site. Our thoughts on this review are where the findings of this report begin in

Chapter 3.

Chapter 4 then presents the main conclusions of EPII’s independent review of ISP2 which begins by

building on the findings of operational monitoring compliance audits undertaken by EPII in 2011, 2012 and

2014.



3

Chapter 4 then aims to answer the following three questions:

� Is the ISP2 strategic approach appropriate?

� Is ISP2 achieving its planned activities and outcomes?

� What is it the progress against the overall stated goals?

The report than goes on to try to answer some other important questions, namely:

� What are the unintended outcomes? (Chapter 5)

� Are there any differences of perspective among key stakeholders that affect achievement of

outcomes? (Chapter 6)

� Are there ways to redesign implementation procedures or address underlying assumptions to achieve

greater levels of success? (Chapter 7)

Throughout the report, recommendations are made for consideration in the process of revising the ISP that

will occur in 2014 as part of the TEP. Concluding comments are presented in Chapter 8.

Figure 1.2: EPII Social Team and BP staff Meeting with the Bintuni Regency Government in Bintuni Town, April 2014

Source: EPII



4

2.1 EPII Approach to Evaluating ISPII

The EPII team has undertaken this mid-term review based on a shared understanding that the pursuit of

community development through ISP2 is essential for the Project, but also not an exact science. Even

under ideal circumstances, outcomes may not be achieved because the project has only a certain portion

of the complex number of societal and contextual factors under its control. The process and approach to

working alongside communities and promoting self-reliance and community evolution is considered equally

important as achievement, as measured by outcomes indicators. Lessons learned from failures or

underachievement may be turned into opportunities which lead to greater or better outcomes.

Although this mid-term review does, to a considerable extent, focus on outcomes, EPII recognises that

there are limits to ISP2’s influence. ISP2 is based on the typical log-frame process (inputs, activities,

outputs, outcomes, impacts). Figure 1.2 and Figure 1.3 below illustrate the influence that actors like

Tangguh LNG have on log-frame elements including outcomes.

Figure 2.1: Limits of Influence

Source: Outcome Mapping Learning Community

2 Approach and Methodology



5

Figure 2.2: Influence and Ownership for Outcomes

Source: Outcome Mapping Learning Community

The above figures help to show a key challenge with evaluating community development programme

outcomes: the focus is generally on one actor, in this case Tangguh LNG. While the main actor’s

contribution can be evaluated by considering inputs, activities and outputs, there is generally less

information on other actors and external factors that affect outcomes.

For ISP2, Tangguh was targeting 11 unique Directly Affected Villages (DAVs). However, other actors such

as Adat and government authorities, other oil and gas companies, and non-governmental organisations

also influence how BP’s inputs and activities lead to outputs, outcomes and impacts in these DAVs.

EPII assumes the desired outcomes identified in ISP2 are based on ideal actions and relationships, but

recognises that ideal situations rarely occur. Outcomes set in the ISP2, while based on consultations with

communities about their needs, do not completely reflect the local peoples’ contribution to the vision. Even

when beneficiaries do contribute to outcome planning, it must be accepted that there can be divergent

interests and priorities within a community and that BP has ultimate decision-making on how it uses its

financial resources and staff.



6

In conclusion, evaluating community development programme outcomes is a challenging process. To

address the challenge, EPII has reviewed the ISP2 on a variety of aspects related to effectiveness.

2.2 External Panel Review Methodology

EPII’s findings are based on data collected during EPII monitoring audits undertaken in 2011, 2012 and

2014, which involved a one week site visit to local project affected communities on each occasion and

document review beforehand. Specifically, sources of data included:

� BP monthly and bi-annual reports

� Presentations by BP staff on each program

� EPII Observations of community life in the directly affected villages of Taroi, Tomu, Ekam, Tomage,

Tofoi, Iratutu III, Wariagar, Tanah Merah Baru, Onar Lama and Onar Baru villages2

� Key informant interviews with village heads, health workers, school staff, cooperative and savings

group leaders and BP’s village representatives

� Participatory focus group discussions with groups of men and women in the communities

� Key informant interviews with Bintuni regency government staff working in sectors with the program

areas cover

After the site visit, the team evaluated the ISP2 against its main components, namely the strategic

approach, the key characteristics, the activities and outcomes, and the overarching goals.

A variety of different evaluation methods have been used throughout including: ranking and numerical

scoring, for example of effort and achievement (the criteria are explained when used), categorisations, and

general observations. Each member of the EP Social Team provided their findings using common criteria.

When numerical scores were used, the averages are presented. Where observations were offered, a

range of similar viewpoints is presented, except in cases where opinions differed considerably (which was

rare), in which case, consensus was sought through discussion.

Figure 2.3: Focus group in Tomu Village in 2014 Figure 2.4: Focus group in Otoweri Village in 2013

2 EPII was not able to visit Wariagar, Tanah Merah Baru, Onar Lama and Onar Baru villages in the 2014 visit.



7

In 2013, the University of Indonesia (UI) was contracted to undertake a mid-term review. The UI

researchers collected primary data utilizing qualitative methods such as in-depth interviews and

observations. They also collected data from periodic reports and Project documents. Achievement values

were defined qualitatively and then substituted into numeric values. The numeric values were then

categorised as inadequate, minimum, adequate, good and excellent.

The UI study results are presented in Table 3.1. Although the review scores of ‘minimum’ or ‘adequate’

performance in each programme suggest under achievement at a glance, the evaluation concludes that

ISP2 implementation is generally on track as planned although many outcomes are out of reach.

Table 3.1: University of Indonesia Mid-term Review Results

ISP2 Programme UI October 2013 Mid-term Review Rating

Governance Adequate - meaning they had achieved 75% of the outcome stated in ISP2

Education and Vocational Training Adequate - meaning they had achieved 75% of the outcome stated in ISP2

Communications and External Affairs Minimum - meaning below 50% of the outcome had been delivered

Health Minimum - meaning below 50% of the outcome had been delivered

Livelihoods Minimum - meaning below 50% of the outcome had been delivered

The findings appear to have assessed delivery against outcome targets that are expected by the end of

ISP2 implementation in 2016. The study caveated that as these results are only half way through

completion, hence all programs could reach full outcome delivery by the end of the program.

It is EPIl’s opinion that a more appropriate approach would have been to quantify outcome delivery against

50% of the full achievement, as only 50% of time had passed. The results of the current expression of

outcome delivery achievement could be confusing: some readers are likely to conclude that three minimum

ratings and two adequate ratings suggest BP is under performing on outcome delivery for ISP2 (this is not

the opinion of EPII, as discussed in detail in Chapter 4).

The ISP2 strategy has the objective of ultimately achieving community empowerment and sustainable

development through a process of moving over time from: ‘development for the community’, to

‘development with the community’, and finally to ‘development by the community’. The UI study found that

the five main programs are still in ‘development for communities’, stage and have yet to reach

‘development with communities’ (EPII does not completely agree with this view, as discussed in detail in

Section 4.3).

General issues that the UI evaluation identifies as affecting outcome delivery are:

� “Outcome targets are too high and outcome parameters are not clearly defined within ISP2

� Several implementation partners have no knowledge of ISP2 document, thus do not understand the

content, philosophy, objectives and most importantly the outcome of each program. Implementation

partners mainly refer to the terms of reference provided by BP Tangguh

� Cross-program integration and coordination between program implementers remain inadequate. One

of the main hurdles is remote locations, which make communication and transportation both difficult

and costly

3 EPII Review of University of Indonesia Mid-Term Review Findings



8

� The greatest challenge faced by implementation staff on the field is various limitations within the

communities due to the lack of competent human resources and the simplicity of local cultures

� The performance of local bureaucracy/administration is due to the new regency administration and

poor work ethic among government staff. This condition is worsened by revenue-sharing fund issues

that only concern the political elites, but hampered the communication between BP Tangguh and local

communities in general.”(Executive Summary)

The UI team had a four month contract to undertake their review and a two week field visit which lends

credence to their findings. EPII recognises the large amount of data, research model and validity of the UI

findings, especially the above deductions. However, EPII also believes that the outcome delivery ranking

findings showing that the programmes are under achieving hide not only BP team’s large effort and

resources dedicated to effective community relations and development outcomes, but also some important

successes in ISP2 outcome delivery, as discussed further in the following chapter.



9

4.1 Overview

This chapter presents EPII’s review of ISP2’s effectiveness. It begins by looking at compliance with Project

requirements, before moving on to look at the strategic approach, the activities and outcomes, and finally

the progress against the overall goal. Taking into account the discussion on challenges associated with

evaluating social change as presented in Chapter 2, when evaluating the achievement of outcomes

consideration is also given to the level of effort made to implement the planned activities.

4.2 Review against Project Compliance Requirements

EPII was requested by lenders to consider ISP2’s effectiveness in assisting the Project in meeting its

compliance requirements. This is in accordance with the overall objectives and functions of EPII, which are

to assess the compliance of operational activities of the Project against the indigenous peoples and social

issues compliance conditions specified in the following Project requirements:

� Production Sharing Contract (PSC) Parties and Loan Agreements

� AMDAL (EIA) documentation and requirements

� Specific statutory requirements laid out in permits

� Environmental and social management plans developed by BP

� Applicable Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC)

policies and the Equator Principles 2003

To this effect, this report can be read in tandem with EPII’s first three annual Operational Compliance

Monitoring Reports (February 2012, February 2013 and June 2014). The non-compliances (NCs) related to

ISP that were identified through these audits are summarised in Table 4.1 below, which shows that NCs

were only identified in relation to one issue - implementation of the community grievance mechanism,

which is a key AMDAL requirement. EPII provided practical recommendations as to how the grievance

mechanism issues might be addressed by BP and this issue was not identified as being problematic in the

most recent audit undertaken in 2014, where no ISP NCs were identifed.

Table 4.1: Overview of EPII Compliance Findings 2012-2014

EPII Audit report year Number of ISP non compliances3 Issues

2012 1 Community grievance mechanism implementation

2013 1 Community grievance mechanism implementation

2014 0 NA

Judged by the above findings alone, it could be said that the ISP2 has been highly effectvie in assisting

Tangguh LNG with meeting its ISP related project requirements. However, over the past three years EPII

has also identified and provided its opinion on some other risks and important issues that are not

specifically non-compliances, but that EPII recommends are addressed by BP in accordance with good

industry practice and in the spirit of continual improvement of its community development programme. The

3 These were all Level 1 Non-Compliances, which are not as serious as Level 2 non-compliances, which result in significant impacts,

damage or harm

4 EPII Review of ISP2 Effectiveness



10

findings and opinions and recommendations of these audits, where still relevant, have been used to inform

the conclusions of this mid–term review.

As BP is undertaking another AMDAL for TEP, it is anticipated that going forward, the aforementioned

project requirements will change and that lenders will require compliance with Equator Prinicples III (2013)

and the International Finance Corporation’s 2012 Performance Standards. ISP areas that will need to

receive more emphasis because of the evolution from the 2003 to the 2013 Equator Principles include

biodiversity action planning and addressing ecosystem services. There is an interface between social

issues and natural resource management and use. This interface should be considered in the redesigning

of ISP2 which may be a means of meeting such new commitments.

4.3 Review of ISP2’s Strategic Approach

4.3.1 Overview

ISP2 identified a strategic approach to the way it interacts with local stakeholders, tackles development

interventions, and deals with the poverty-environment-gender nexus. The ISP2 strategy has the objective

of ultimately achieving community empowerment and sustainable development through a process of

moving over time from: ‘development for the community’, to ‘development with the community’, and finally

to ‘development by the community’. Ultimately, the aim is for there to be little or no dependence on the

Project by stakeholders. Table 4.2 shows with grey shading where EPII finds ISP2 currently to be placed

on this continuum4.

Table 4.2: Review of BP’s Strategic Approach

Strategic Approach Development for the community

Development with the community

Development by the community

Main Actors Tangguh LNG Tangguh LNG with local government and local community

Local government and local community

Type of Relationship Socialisation, Consultation Collaboration Mutual benefit

Strategic partnership, empowerment

Implementing Agency Tangguh LNG and external contractors

Tangguh LNG, external and local contractors, local government

Local government and local community

Type of Activities Infrastructure development, direct provision of public and social services

Joint program, resource sharing, capacity building

Supporting and facilitating activities

Unlike the UI mid-term evaluation, which characterised the program as at “development for the

community”, EPII finds the program is at “development with the community” on the whole. The only aspect

still considered in the first phase is “type of activities” because in some cases BP has made direct provision

of public and social services. Recent examples include several jetties, which do not appear to have had

resource sharing.

4



11

Although there are no timeframes prescribed in ISP2 for progression along the continuum, EPII considers

progress in moving along the continuum as being appropriate for the current Project stage. EPII foresees

Tangguh LNG continuing with the “development with community” strategic approach for at least the next

five years because of the community conditions and because the 2015 Regency elections. The elections

could result in personnel changes requiring socialisation of and collaboration with a new cadre of public

servants.

4.3.2 Appropriateness of Key Characteristics

ISP2 identified three key characteristics to focus its activities. Table 4.3 presents the reviewers’ comments

on the appropriateness of these and whether the programmes are meeting the definitions stated.

Table 4.3: Review of Key Characteristics

ISP2 Key Characteristics External Panel Review Comments

Asset based – emphasise use of locally owned assets

ISP2 activities have targeted programming to DAV’s strengths, interests and needs Hard to assess what is meant by locally owned assets. May be worthwhile to use sustainable livelihood capital (human, financial, physical, social, and natural) theory definitions instead.

Key beneficiaries to be households and community based organisations

Most programmes target individuals (such as students, women, and village heads) which has some benefits for households. ISP2 has introduced some community based organisations (cooperatives and women’s saving groups) but many of them struggle.

Sense of ownership and involvement of local community and local government

BP has made considerable efforts to involve local community and local government. This sometimes has slowed achievement but does contribute to sustainability. There is still a lot of dependency and this will be the on-going challenge to move from development ‘with’ to development ‘by’ the community

Overall, EPII feels that these key characteristics are appropriate (although they could be more clearly

defined in the document places), and that the five programmes are consistent with these characteristics.

4.3.3 Quality of ISP2 Monitoring and Evaluation (M&E)

BP produces monthly, quarterly and annual internal monitoring reports that are appropriate and relevant.

The ISP2 program has also benefited from the use of external agencies to gather baseline and monitoring

data in relation to socio-economic conditions. For instance, in 2013 there was a detailed baseline survey

undertaken by Universitas Gajah Mada (UGM - BP’s main Governance Programme partner) as well as a

cumulative impact assessment undertaken.

External bodies contribute to monitoring and evaluation (M&E). Annually the Tangguh Independent

Advisory Panel (TIAP5) and External Panel visit the Project, and sometimes BP’s social safeguard

specialists provide their expert opinion in evaluations. In 2013, UI was contracted to undertake a mid-term,

as discussed in Section 3.

55 The TIAP 2014 report was not available for EPII for this review because of the short timeframe between the two visits.



12

In general, the amount of M&E activities are appropriate and the activities are considered relevant.

However, when combined with the additional AMDAL consultation undertaken in 2013 and 2014 for the

TEP appears to have resulted in community consultation fatigue. Consultation fatigue is exacerbated

because M&E and study results are not routinely fed back to the communities and stakeholders who

provide the data and opinions.

Since 2009 the social census results are shared with the local government and BP regularly issues a

bulletin to communities called Kadate (Kabar Dari Teluk). The content of Kadate includes the results of

engagement with the communities. It is recommended that BP continues to explore other avenues to

communicate engagement results, for instance through non-technical summaries of surveys and radio

programmes. Although the concepts of some results may be challenging for those with less schooling,

these efforts should be made as they may stimulate discussions and contribute to capacity building. As

much as possible, photographs and other visual materials should accompany the materials (as is done

with the Kadate newsletter) to address literacy constraints. Copies of the community profiles produced for

the purpose of briefing EPII during its site visits should be provided to local village and Adat leaders. This

would also encourage two way dialogues and serve the purpose of ‘ground-truthing’ the community

resource mapping.

4.3.4 Effectiveness of ISP2 Budgeting and Staff Resources

EPII finds ISP2 budgeting and staffing levels and profiles to be appropriate. Since 2011 almost $5 million

has been spent on ISP2 per year. The availability of funding and the need to show results may in some

cases be at odds with absorbency, capacity to manage, and cultural aspects related to “time”.

Nonetheless, BP appears to be spending the earmarked amounts on ISP2.

A key reason for ISP2 successes is the dedicated staff and staff retention is considered good. The BP

team is aware of the internal and external challenges for implementing ISP2. Serious resources are

allocated for planning, implementing and monitoring their own as well as contractors’ work. However, as is

common with most community development programmes, there are community requests for more

presence on the ground in the communities.

4.4 Evaluation of ISP2 Activities and Outcomes

4.4.1 Overview

As identified in the introduction, community development and social change are complex objectives with

many actors and factors independent of project duration. Both are non-linear and subject to many issues

that affect control. The ability of one main actor, such as BP, to control and influence outcomes and

impacts is limited. Recognising this, the EPII in its evaluation approach has considered effort as well

achievement.



13

Appendix A presents our analysis of efforts to complete activities (which BP has more control over) and

achievement of outcomes (which BP has less influence over). The sections below provide a summary of

our analysis for each program.

4.4.2 Governance

Table 4.4: Summary of Governance Program Achievement and Effort Evidenced by EPII

EPII MID-TERM REVIEW FINDINGS

ISP2 Stated Planned Outcome Number of Planned Activities

Achievement

2= satisfactory

1= less satisfactory

0= Negligible or no achievement

Effort

2= satisfactory

1= Less satisfactory

0 = Negligible or no effort

Improved performance based development planning and budgeting by government through integrated, participative and representative process

6 1.5

1

Improved public services on health, education and public administration through transparent and accountable management

3 1.5

1

Increased awareness by governments and communities in Tanah Merah Baru, Saengga, Onar Baru, and Irarutu III villages about the impacts of in-migration and improved ability to manage it

2 2

2

Improved participation of civil society in oversight of socio-economic development process and security management of Tangguh operation (ICBS)

3 2 1.5

For at least half of the activities there has been good effort and half the outcomes have had evidence of

satisfactory achievements. Government partners are generally able to identify the benefits of ISP2 working

with communities that are hard for them to reach because of remoteness and the authorities’ lack of

resources to travel. A majority of DAVs have learned how to undertake participatory planning through the

many planning workshops and mentoring activities implemented by BP. However, local communities get

discouraged because there is a general lack of response by district and regency government to their

village development plans. There is strong evidence of local communities using community action plan

(CAP) funding from BP to meet village identified priorities. The Dimaga Foundation6 is only beginning to

function and generally it has not contributed to tribal governance. That said, the challenges are many

(including but not limited to agreement among the three tribal entities and within each entity, issues of

6 Dimaga is a registered Foundation responsible for managing the endowment funds that are to be used to create sustainable benefit

for three clans compensated by Tangguh for the use of their lands.



14

legitimate representation, and politicisation) and the initial step forward of getting the Dimaga Foundation

to a functional position should be considered a success.

Figure 4.1: Population census information displayed in Tofoi village government office

Source: EPII

4.4.3 Communication and External Affairs (C&EA)

Table 4.5: Summary of C&EA Program Achievement and Effort Evidenced by EPII



Achievement

2= satisfactory



Effort

2= satisfactory



Improved communication and collaboration with local stakeholders to promote the stable operation of Tangguh LNG

4 1 2

Improved awareness of local stakeholders of benefits of the Tangguh LNG presence

3 1 0.5

Revitalised local cultural values in tribal groups in DAVs

2 1 1.5



15

Satisfactory efforts have been made on more than half the activities but the outcome achievement is less

obvious. Generally BP staff has good communication links with village leaders and community members in

the DAVs. BP uses village representatives as the key medium for keeping the pulse on community

interests. However, EPII believes that while the links exist more effort needs to be given to messages.

Providing feedback on activities undertaken in villages and ensuring consistent messages are shared

across the beneficiaries group, via the village representative or radio, should be considered.

4.4.4 Livelihoods

Table 4.6: Summary of Livelihood Program Achievement and Effort Evidenced by EPII



Achievement

2= satisfactory



Effort

2= satisfactory



Added valuate to the existing livelihoods through production process improvement and product development

2 2 2

Diversified household livelihoods by family members especially women

2 2 2

Improved access of local community and indigenous Papuan contractors to economic resources including market, financial services, and business related information

3 1 1

There is plenty of evidence regarding satisfactory effort and achievements for the livelihoods program. The

UGM baseline survey of 2012 identified that all DAVs are above poverty line which is a positive reflection

on both the ISP2 generally and the livelihood program in particular. The cooperative activities are

benefiting their female members and in some villages, such as Iratutu III (in the Babo District), the

cooperative leaders are gaining negotiation skills. In 2013, the EPII noted that there has not been much

change in the livelihood related cooperative member numbers but there is consistency and care of existing

members.

Indocater (the company supplying food to Tangguh LNG) is buying local produce and an improved rhythm

between community supply and site demand for produce is being achieved, although continual monitoring

is still encouraged. Most of the community suppliers are expanding either the amount or variety of

products. Introduction of post harvesting is visible at the two outlets, but this is welcomed as a start. There

is a fine balance between building on a community’s strength and diversifying household income sources

through new livelihood activities. While there is no concrete answer, based on community consultation

undertaken by EPII during the 2014 visit, stakeholders appear to be more interested in building on existing

strengths.



16

Figure 4.2: EPII Social Team consulting with a farmer who is a beneficiary of the livelihoods programme

Source: EPII

4.4.5 Health

Table 4.7: Summary of Health Program Achievement and Effort Evidenced by EPII



Achievement

2= satisfactory



Effort

2= satisfactory



Reduced incidence of malaria, diarrhoea, HIV/AIDs, TB in DAVs

4 2 2

Improved quality of mother and child health in DAV

2 2 2

Improved quality and access of clean water and improved awareness and practices regarding environmental sanitation

3 1 1

Improved accessibility and quality of primary health service providers

2 2 2

In all activities, other than those relating to clean water, there is plenty of evidence related to effort and

outcomes for the health program. There have been varying results depending on the village location,



17

availability of clean water provision and hygienic conditions. ISP2 has continued to decrease the

prevalence rate of malaria at the Project site and in the DAVs. The malaria programme was recently

recognised with awards by the regional and national Ministry of Health, a success of which BP is justifiably

proud. Maternal health support has been delivered but poor hygiene is still an issue in some villages (for

example, Taroy).

From EPII’s village visit observations and consultation activities there is less evidence of achievement in

the tuberculosis (TB) and HIV/AIDs programmes, possibly because of the higher costs for treatment

(medicine as well as transportation fees to reach a location and doctor with appropriate expertise), which

villagers are generally not interested in pursuing. The health team strategy to address HIV/AIDs is to

revitalize KPAD (‘Komisi Penanggulangan AIDS Daerah’, or Local AIDS Coordinating Body) which is

considered as a critical stakeholder on prevention and fight against HIV/AIDS. The initial program to

introduce HIV/AIDS prevention awareness was delivered to students at schools, but children are not

considered to be the main target. Rather, in alignment with the national strategy, the program is focused on

high risk groups, including female sex workers and mobile men. It is delivered to some high risk areas that

have been identified as transmission hot-spots including Bintuni and Babo towns, and Tofoi village.

Hand washing campaigns were identified as having been undertaken in all the villages visited by EPII

during 2014. Community feedback was that hand washing was useful and the campaign had been helpful

for addressing some of the hygiene and diarrhoea challenges. Distances for transferring patients as well as

the referral system for treatment from villages to district and regional health facilities are key external

constraints recognised by BP and the UI mid-term review. Already BP facilitates transportation when

possible. Options to directly address community transport needs are currently under consideration by BP.

Figure 4.3: Mother and baby health clinic in Otoweri village

Source: EPII



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4.4.6 Education and Vocational Training

Table 4.8: Summary of Education and Training Program Achievement and Effort Evidenced by EPII



Achievement

2= satisfactory



Effort

2= satisfactory



Full implementation of national education system by local government

2 2 2

Improved attendance of school age children to available education institution

3 2 2

Availability of skilled local people especially indigenous people and women

3 2 1

Satisfactory effort to implement planned activities and achieve outcomes has been witnessed by EPII for

the first three years and there is strong evidence of achievement too. The UGM study identified that mean

school years attendance and pass rates are improving in DAVs. The Sampoerna Foundation flagship

school in Tanah Merah Baru is receiving recognition as a good model by the regency education

department although there have been comments about problems related to the headmaster.

A key issue for the education programme is payment of teachers’ salaries. Both health and education

programmes have challenges attracting workers with qualifications who are willing to stay in remote

villages, especially when regular salary pay is not forth coming. Over time more teachers from the area will

need to be trained.

The scholarship programme is active although generally school staff is not aware who the local recipients

are. Support for undertaking the national exam is welcomed by communities. EPII is of the opinion that

there are more quick wins – for example the provision of books to schools - and links to Tangguh LNG’s

skills development activities that can be made (see details in the redesigning ISP2 Section 6).

To conclude this section on achievement, successes should be celebrated while a continual improvement

perspective is applied. There are large and small successes scattered over the various programs. Some

of the most important or visible ones are well known to BP, but perhaps less well-known to other

stakeholders, including the communities themselves.



19

Figure 4.4: New Junior High school in Taroy village that BP’s Education Programme is supporting through the

recruitment of teachers and payment of their salaries.

Source: EPII

4.5 Progress against Overall Goal

The overall goal of ISP2 is to support local efforts to enhance the quality of life of local communities

through participative and accountable local development practise and to contribute to Tangguh LNG

operational sustainability.

When considering progress against this goal, EPII finds that while there are differences of perception about

specific ISP2 activities among communities. Generally EPII has witnessed positive changes in

infrastructure and services. EPII has often heard statements from community members testifying to

improved wellbeing from the BP programming. As such EPII feels that on the whole, ISPII is on track in

meeting its overall goal of improving quality of life.

During ISP2 planning, life quality was defined as having two mutually reinforcing aspects: the opportunity

for local communities to pursue their own development process; and, improvement of local community

well-being as per the millennium development goals. EPII’s ratings on achievement of the overall goal as

measured by its contribution towards improving well-being through meeting Millenium Development Goal

(MDG) objectives are presented in Table 3.9 overleaf. These findings are consistent with those of section

4.4.



20

Table 4.9: Evaluation ISP2 ‘overall goal’ achievement measured by the contribution towards MDG objectives

ISP2 Overall Goal Criteria:

MDG objectives External Panel Rating (0-4)* Source of evidence

MDG - Eradicate extreme poverty

3 Largely achieved UGM 2013 survey results in DAVs, for instance, related to household income (all DAVs above the poverty line), livelihood sources, literacy rates, health incidents

MDG - Achieve universal primary education

2.5 Partially to largely achieved

UGM survey results related to school attendance mean years of schooling and pass rates show improvement, but there are still attendance issues.

All villages have schools and teachers. Without BP paying salaries, in some cases teachers would not be present.

Results of education participation and achievement differs among villages

MDG - Promote gender equality and empowerment

3 Largely achieved Women as cross cutting theme in implementation of ISP2. BP has had a range of activities targeted to women across all five ISP2 programme areas. Highest gender achievement in livelihoods, more to do in governance

MDG - Reduce child mortality

3 Largely achieved Focus groups identify better child nutrition. BP has health programmes that show good health outcomes in relation to disease prevention that affects children (malaria, diarrhoea). UGM study found improvement

MDG -Improve maternal health

2 Partially achieved ISP2 included building of maternal health centres; EPII has observed through visits to a health centres in a number of villages that the quality of services and provision of equipment varies. BP’s maternal health programme is considered to be on the right track, however EPII consultation with villagers and health cadres revealed that many women still give birth at home using traditional methods due to financial, cultural and hygienic constraints.

MDG - Combat HIV/AIDs, malaria and other diseases

3.5 Largely to completely achieved

Malaria eradication in DAVs has been impressive. Prevention programmes for other diseases have been initiated. UGM statics show important gains in health status.

MDG -Ensure environmental sustainability

2 Partially achieved ISP2 included several initial programs on environment issues such as mangrove plantation that was conducted in several DAVs. However, little evidence was seen of ongoing activities during the EPII site visits.

MDG - Develop partnerships

3 Largely achieved ISP2 used contracting partners to implement its programmes.

Pursuit of own community development

3 Largely achieved Governance programme provided capacity building on ‘musrenbang’ (village participatory planning ) process and funds for local development which previously did not exist

Contribute to LNG operational sustainability

4 Completely achieved

BP senior management indicated that business is stable. Over the last year there have not been any major changes with the Project organisation or practices. Security incidents are generally minor.

Notes: *For this rating, the EPII has used the same scale as UI, namely: 4 = likely to be completely achieved, 3 = likely to be

largely achieved, 2 = likely to be partially achieved, 1 = only likely to be achieved to a very limited extent, 0 = unlikely to be

realised, X = not attempted



21

5.1 Overview

Jealousy, maintenance and consultation fatigue are considered unwanted and unintended outcomes by

EPII. These are discussed in this chapter and suggestions are made on how they may be addressed in the

future.

5.2 Jealousy

Jealousy within villages and among villages is more noticeable during discussions with community

members and BP staff during this visit in comparison to previous visits. . Within villages, for instance, there

is mention in the focus groups that only some people benefit from activities that involve groups of people,

namely women’s saving and livelihood cooperatives. Another example is the differences in opinions

regarding treatment of communities on the two shores.

While training generally tries to be wide reaching, follow-up mentoring naturally targets early adopters in

relation to technology and management for the livelihoods and governance programmes. EPII has noted

that the personal qualities of the leaders (for instance patience, tolerance and openness) as important to

the proper functioning of livelihood groups, in particular in relation to financial matters.

While jealousy is to a certain extent a natural outcome of a diversified and targeted approach, which in

many cases has valid reasons – for example the subsistence agriculture programme is targeted towards

villages that historically have suffered from malnutrition and or poor access to markets which may make

commercial enterprises not viable – it is recommended that BP tries to actively manage perceptions of

favouritism. This can be done through better communication and through greater explanations of the

reasons for the diversified approach to those villages expressing jealousy.

5.3 Maintenance

An issue for ISP2 being created as a result of the positive infrastructure development, is maintenance

issues, which are often are a reflection of both dependency and expectations.

In 2011, it was identified that community members in the resettlement affected villages still had high levels

of expectations that BP will undertake the maintenance of infrastructure it funds for building, for instance

the houses in Tanah Merah Baru. The interest in BP paying for their water system was heard in 2014. The

EPII has heard similar feedback in relation to jetties. Looking at the roof materials that are starting to rust

and recognising that CAPs has helped develop many buildings in many villages, the EPII thinks more

emphasis on maintenance issues is needed or it could become a significant risk.

There are some buildings that were built and are in disrepair, for instance, a health post in Ekam which is

not being used because of lack of equipment so people go to the other more distant health post. As well,

there are buildings which are generally too large for the local team or situated close to a replacement, for

instance the health post in Taroi and the new village hall in Tofoi. Buildings that are quite new can often

show signs of aging because of the tropical rains as well as tides in the Project area.

5 Managing Unintended Outcomes



22

EPII recognises that infrastructure can be a form of quick win and accepts that not every infrastructure

choice (design, size, location) will be perfect. However, more emphasis on maintenance should be

considered in future programming. Suggestions include house and building maintenance training course

(using a local building to get hands on experience), having a revolving loan fund, negotiating more

agreements with local government departments to take on maintenance and long term funding of social

service facilities, inclusion of internships for local community members on contractor teams, and the

organisation of “volunteer” work days where a group of people meet to do the up-keep.

Maintenance of human relations and efforts is also essential. One comment the EPII staff heard more

frequently on the 2014 visit than in previous years, was that activities function effectively while mentors are

present, but after they leave there is not always continuity. This is a typical community development

dilemma with no easy answers. EPII believes that rotating mentors is worthwhile and that keeping them in

places indefinitely can increase dependency rather than build capacity. Supporting local champions

through recognition (for instance, perhaps BP can find something similar to “employee of the month” for

local communities, or produce certificates of appreciation given at an annual community meeting), building

on strengths, reinforcing mentoring advice with messages (even for instance with text reminders) may all

help. This is an issue that was exhibited across a number of programmes and therefore it may best be

addressed at the village level, through intensified communication efforts relating to programming, to

explain why mentors are leaving and the direction that the various programmes are taking

Retention of CRP staff, that is, maintaining and using trained staff, especially IPs, will also be needed.

Retention takes on greater importance knowing that demand for trained workers increases as other oil and

gas companies expand their activities and as induced development impacts create more general business

opportunities in the Bird’s Head province. As well, BP is making an effort and using resources to move IP

staff up the skills ladder so efforts to maximise these results is important. Retention strategies are briefly

discussed further in the Section 7.3.

Figure 5.1: The primary school in Tomage village in disrepair is an example of maintenance issues

Source: EPII



23

5.4 Consultation Fatigue

There were challenges to organising some EPII site visits in 2014 because of sensitive relationships with

several communities, in particular on the north shore and Tanah Merah Baru. The sensitivity has arisen

through normal programming but also because the AMDAL process has encouraged communities to talk

about their aspirations, interests, concerns and grievances. This has incited antagonism in some

communities and EPII was told by some community member consulted with that they think “there is lots of

talk from BP, but little action from them.” Sometimes community members may consider a BP provided

communication channel as a sounding board for wider frustrations which are not always directly connected

to the company.

The TEP AMDAL process requires stakeholder and community consultation, from both a national legal

environmental permitting, and an international lender financing perspective. In addition to the AMDAL

stakeholder engagement activities undertaken over the last year, in 2013 a socioeconomic baseline survey

was undertaken by UGM7, the Tangguh Future study (cumulative impact assessment) was undertaken by

BP, a mid-term evaluation was undertaken by UI. In 2014, some local communities were recently visited by

Tangguh Independent Advisory Panel (TIAP), and then separately by EPII. BP corporate external and

social safeguard specialists are also anticipated later this year. All of the above is on top of the ISP2

implementation activities with community development staff from BP, the two Project related foundations

and program contractors.

EPII has noted that while a lot of data was collected from communities and stakeholders from 2011 to

2013, little of it or visit results have been fed back to the people who provided it. The lack of feedback

increases the perception of ‘a lot of discussion but little action’, and exacerbates consultation fatigue

experienced in some villages. For any concrete activity (surveys, seismic exploration, recruitment

needs), information should focus on facts and repetition of key messages. The use of diagrams and

illustrations will help manage expectations.

Greater emphasis should be given to returning data and results to those who provide it (see Section 7.3.2

for more detailed analysis of how to address consultation fatigue) re-designing suggestions for more

details. It is also suggested that BP continue to rotate the villages that are visited by groups from outside

Papua who are not contractors and those who will only have temporary relationships. It is understood that

TEP and contractors also have a desire to undertake their own CSR activities, but BP's approach is that all

activities should go through the BP CRP team. This approach is considered to be appropriate in order to

manage consultation fatigue. BP should continue to make efforts to liaise closely with contractors to make

best use of their finance and other resources committed to CSR, administered through the existing BP

programmes, where possible.

7 This study was used to not only monitor socio-economic conditions in the Project area but also to collect data for the ESIA and

inform the AMDAL.



24

6.1 Overview

EPII defines stakeholders as persons or groups who are directly or indirectly affected by an activity like the

Tangguh LNG, as well as those who may have interests in it or the ability to influence either positively or

negatively Project decisions or outcomes. The interests within and among stakeholder groups may be

multiple and contradictory.

EPII recognises that BP has a balancing act to manage the perspectives and influence of a range of

stakeholders. Key differences exist between:

� The various levels of government namely village, district and regency

� Adat representation and elected government administration

� What individuals see as state and private sector responsibilities

� Oil and gas companies’ approach to interacting with local communities and government partners

� Interactions with external NGOs

The sub-sections below provide brief analysis on some of these perspective differences.

6.2 Government Perspectives & Capacity Variations

Within government agencies, there are different levels of capacity and resources at the village, district and

regency level. Within government line agencies there are often different personal capabilities to meet

identified roles and responsibilities. How government resources are used in response to the Project also

differs among the programs and across time. The EPII 2014 visit identified more examples of cost sharing

for services which are typically government’s responsibility. This is a positive step forward: BP should try

and capture this in its monitoring and evaluation activity as an indicator for moving from development, ‘for’

to ‘with’ to ‘by’ communities.

EPII was told in 2014 that the government is grateful for BP assistance because otherwise the small

remote villages where ISP2 has been active are mostly beyond the reach of their activities. Regency

government does not have resources for transport and per diems to work in the distant locations serviced

by ISP2. At the same time, EPII has also heard from regency level government officials that the DAVs are

“BP’s villages” so government can use its limited resources in other places. Village community members

have commented that district and regency officials do not respond to their planning requests and

community needs. Keeping public sector and private company roles clear will be an on-going challenge.

It is worth noting that while the presidential election of 2014 had limited direct impact on ISP2

implementation, the regency elections expected in 2015 will have significant effects. BP has invested time

and resources to establishing and maintaining good relationships with many government officials. The

possibility of significant changes to counterpart government staff is recognised by BP. If the local elections

bring a change of political party, BP will need to redesign its communication program to address new

needs and priorities. The EPII would like to remind the ISP2 staff of Shelley Arnstein’s ladder of citizen

participation and the ladder of adoption which is relevant to their work, as presented and discussed in

Appendix B.

6 Challenges of Different Stakeholder Perspectives



25

6.3 Adat Community’s Perceptions of Marginalisation

In 2012, Adat issues8 were highlighted in the EPII compliance report. While it is recognised that Adat

issues, like all political issues, are complex and change over time, EPII notes that in since its first audit in

2011 a decrease in Adat related activities by BP. Most notably, the position of Adat liaison officer has not

been staffed with a primary focal point since 2012. Furthermore, there has been very limited distribution of

the attractive and relevant Adat story books, especially in villages and schools.

As the EPII team was not able to visit most of the communities on the north shore because of on-going

sensitivities, often connected to tribal and Adat compensation issues, it is suggested that BP make more

efforts to find uncontentious ways of providing support. Activities that could be considered include

identifying an Adat liaison officer (and sending the officer for conflict mediation training), printing more

copies of the Adat related stories and holding youth fun days that are carried out in tribal languages. As

well, BP’s idea to do a camp with Adat leaders and youth sounds excellent and should yield entertaining

and positive results for all those involved.

6.4 Other Oil & Gas Companies in the Area

BP is one of several oil and gas (O&G) companies operating in the local area and not all of the others have

the same approach for interacting with their stakeholders, especially local government officials and

communities. BP has considerable staff resources and dedicated thoughtfulness for its ISP2 program, plus

it has the advantages of being the first operational O&G scheme. Hence, other companies should be

looking for lessons learned from BP. BP is encouraged to consider taking a lead on establishing a formal

local forum for the O&G companies to share experiences and to the extent possible use similar

approaches. Already in 2013, BP was successful at sharing and encouraging Genting Oil, which is

operating in close proximity to the Project, to adopt BP’s community based policing model.

6.5 NGOs entering the Scene

For the first time since beginning operational monitoring, EPII was informed of NGOs being active in the

DAVs to try and influence community members’ perception of Tangguh LNG. Community stakeholders

consulted in Taroy village reported that ‘Down to Earth’, an environmental advocacy NGO had visited

some communities. Although stakeholders commented that the NGO ‘only talks and does not do anything’,

the introduction of their name adversely affected the mood and level cooperation with men participating in

the consultation. The climate of the meeting was changed and became more antagonistic.

In 2013 there was also an incidence with a local Papuan NGO named Terare. Terare tried to encourage

one of the main beneficiary groups of the Dimaga Foundation that BP was not managing foundation

investments well, and that it could do it better. Upon investigation Terare was found to be a small mostly

political, organisation with very limited programmes. EPII found satisfactory BP’s explanation that it met

with Terare and explained how the Dimaga Foundation works. BP indicated that the incident was

8 A key requirement is that the ISP document and the project overall needs to comply with the IPDF.



26

considered closed as Terare agreed to communicate its new knowledge of the Foundation with community

members. EPII recognises that BP is loath to do more with this entity now that the incident is over.

However, it is a local Papuan NGO and as there are few of them, it might be worth the effort to try and find

a low risk activity that Terare could be asked to undertake, to build some of its programming capacity and

strengthen local civil society.



27

7.1 Overview

Although mid-term is a common time to adjust or refine community development programming, it is not

necessary to modify programs. However, it is clear from the BP presentations that ISP2 staff thinks it is

worthwhile and essential to redesign ISP2. The modifications will not be small: BP intends to rename the

programme from ISP2 to Tangguh Sustainability Development Programme (TSDP) to reflect significant

changes and that the driver for the new programme is the new AMDAL and the TEP project in particular. In

some cases, contracts that naturally came to an end (British Council in the education program and UGM in

the governance program) have not yet been renewed and there have been transition gaps in service

provision. A key reason for making substantial changes is the current AMDAL process which BP wants the

TSDP to reflect. The sections below discuss BP ideas and introduce some EPII suggestions for

redesigning ISP2.

7.2 BP’s Proposed Tangguh Sustainable Development Plan (TSDP)

Since 2013, BP staff has been considering changes needed for an ISP2 revamp. During the 2014 visit,

EPII were told about some of the key ideas being considered. Table 6.1 overleaf describes some main

ideas put forward during the visit and provides EPII feedback.

Figure 7.1: EPII agrees with BP’s revised approach of re-orientating emphasis from DAVs to indigenous peoples

Source: EPII

7 Options for Redesigning ISP2



28

Table 7.1: Feedback on TSDP

BP’s Ideas for Redesigning ISP2 into TSDP EPII feedback

Delete use of DAV terminology and have the beneficiaries include a north shore area and a south shore area. The main target for TSDP programmes will be indigenous people (IP).

This is an excellent idea. During operation (and even during construction of Train 3), very few villages will be directly affected. The expression ‘DAVs’ has become obsolete and a misnomer that should be put to rest. The emphasis should be on being a good neighbour willing to demonstrate robust corporate responsibility in an area with high presence of impoverishment risks. The rationale for targeting IPs is solid. A more geographical spatial approach will help deal with the changing administrative units9 and should help minimise jealousy. No matter what area and beneficiary definition is selected there will always be boundary issues.

Moving services offsite and substituting Jakarta based services into Bird’s Head region

Another excellent idea. When moving services offsite, lessons learned from introducing local food supplies to Tangguh LNG should be helpful: go slow and begin with pilots to ensure quality as well as balance between supply and demand10. Keep looking for services that can be moved from Jakarta to the Project like the medical assessments. One idea is printing of reports, education materials, and program campaign materials11.

Adding partnerships to the mix.

Another excellent idea. BP has talked about partnering with USAID and UNDP to help deliver some of its core programmes. BP is trying to encourage other O&G companies to support the Yayasan Pengembangan Teluk Bintuni (YPTB) Foundation12 of which it is currently the sole funding source. Adding partners should help reduce some beneficiary dependency on BP. Partners could provide strategic advantages that contractors often cannot because of the subordinate type of relationship.

Greater emphasis on skills development

Although Tangguh LNG is above its IP workforce targets, BP staff has recognised that the trend for moving towards 85% is not increasing at its previous pace. EPII encourages this greater focus on skills development which is likely to bring mostly positive benefits to local communities. Suggestions made during the visit include: adapting a bring your child to work day type activity to target young teenagers looking ahead at livelihood options, producing a book that pictures and describes the types of occupation that are available to children including Tangguh LNG jobs, putting some focus on staff retention by considering community infrastructure in places where local workers live13 and by considering the provision of counselling services for IP workers who want to quit but whom the company or contractors are interested in retaining.

Introduction of environmental stewardship activities

Another excellent idea. Addressing ecosystem services and linking livelihoods to biodiversity is likely to be required for lender financing agreements related to Tangguh LNG expansion14. Comments were made about lack of wood for building in Tomage. This suggests that

9 Since the first EPII visit, DAVs have been sub-dividing into new villages and there have been district boundary changes.

10 The report author provided additional information to relevant BP staff on procurement strategies for better involvement of local companies as well as the Kraljic Portfolio Purchasing Model for identifying services and products which are mostly likely to have positive outcomes if contracted to local companies.

11 BP could search out Bintuni and Fakfak based companies willing to take a loan (perhaps through BP with limited interest) to upgrade printing equipment. Providing some guaranteed printing contracts at the same time might be an incentive. Be sure to not over flood the market with printing equipment.

12 YPTB is a Foundation that Tangguh LNG helped established to undertake community development activities in the wider Project area, mostly related to infrastructure and transportation. Currently BP is the sole source of funding but YPTB staff are hoping to also receive funding from other sources including other O+G companies.

13 When staff’s incomes increase it is natural to expect that they will want their families to have access to improved education and health facilities.

14 IFC Performance Standards 2012 which are part of the 2013 Equator Principles III has new requirements for these issues that were not in the original 2003 version to which the original project is required to comply with.



29

community forests may be helpful. Addressing littering behaviours takes a long time but can be worthwhile for natural resource management and health. EPII also suggests that Tangguh LNG begin at home and find ways to minimise the many disposal items that are on site (plastic cutlery, cardboard boxes, small water bottles, etc.)15. There could opportunities related to training and skills utilisation for turning waste into products, for instance bags from plastic materials and flower pots from bottles.

Project ideas considered by EPII to be ‘high risk’

EPII identified a programme idea that is being North Shore Housing program (NSH) and this is considered as high risk by EPII for various reasons:

– It currently does not have housing in its objective (this can be easily changed). – The demand and interest in fixing or building individual’s houses will never wain and

people will wonder why BP did it for some and not others. – On-going maintenance expectations need to be carefully managed with regards to

housing provision (the experience of Tanah Merah Baru is an example) – The program seems to be driven by the Regency government’s interests and to date

it seems like there has been limited community involvement. – Satellite imagery of Weriagar village shows that natural processes (erosion) are

bringing the river and sea closer together which means in the not too near future, existing houses could be flooded out16. It does not seem prudent to improve buildings if households will have to move.

The EPII suggests rethinking this program. For instance, have a plan in place to make it accessible for a wider range of north shore households and find ways to support house improvements without being caught in a trap where BP is responsible for maintenance. Ideas include identifying a range of house designs, identifying contractors and typical prices for various renovations, having a loan fund with minimal interest and that is based on getting more money when a specific task is completed, providing training on household maintenance, and having a showcase building or mobile unit that exhibits water, sanitation and energy technology. The “Habitat for Humanity” model which is based on volunteerism, community cohesion and requires beneficiaries to contribute to their and others’ houses through working time may also be attractive. Aceh post-Tsunami reconstruction had lots of organisations working on housing and there should be a large body of lessons learned and best practice that can be built upon.

7.3 External Panel Ideas for Redesigning ISP2

7.3.1 Overview

During the 2014 visit, several suggestions have been made for improving ISP2 programs. These are

recounted below.

7.3.2 Communication Activities

Providing greater focus on communicating results and mutual responsibility17

stood out during this visit. In

particular, it is suggested that the communications team produce non-technical summaries (NTS) of all

15 Many of the plastics have large environmental costs related to transportation in and out of site.

16 The authors are not erosion or natural resource specialists but someone who does have this specialism should be consulted about a likely timeframe for the river and sea to meet because of environmental reasons.

17 For instance there was a good slide on mutual responsibility in one of the BP presentations and that theme was identified as being discussed during the recent AMDAL public consultations.



30

studies for which communities are consulted. Current examples include the marine mammal study, the

UGM baseline, the UI mid-term review, the TIAP report, the community profiles provided to the team, and

the EPII reports. The NTSs can be distributed via existing communication materials but also as stand-

alone documents. Village post boards to provide this information could be used. Community members

indicated they rarely get to see the photos taken during visits so the NTSs should have plenty of pictures. It

is recognised that all the report concepts may not be easily understood by community members but

simplifying them will help. Also they may spark dialogue, contributing to local capacity and discussions

about priorities.

Another key communication tool suggested is that BP’s communication team produces a monthly key

message that is shared with all village representatives. This would standardise messages across the

beneficiary area and give the impression of one voice, rather than multiple different stakeholders engaging

with the communities, which is one of key contributing factors to consultation fatigue. The village

representatives can share the messages at a meeting or post them. Keeping the village representatives

well informed with key messages should help them in their important role as community liaison. For this

recommendation (and those in the above paragraph) to be effective the village representatives will require

further training in community relations.

Last, the EPII has seen little evidence of radio use. Like the suggestion above for village representatives,

producing radio programmes in local languages would contribute to standardised messages across the

beneficiary area. The messages can show that BP is supporting the full range of individual villages in a

manner that aims to be equitable and that there are results in all programmes.

7.3.3 Community Investment Programme Simplification

Right now there are many programs that are implemented under and outside the umbrella of ISP2 which

has various names (CIP, IPDP). For the EPII it is sometimes a challenge because certain elements linked

to community development can be inside or outside our scope. For other stakeholders it may also be

difficult to keep all the various activities compartmentalised in a way to have a full picture of Tangguh

LNG's activities and outcomes.

Just as the operations team uses the slogans ‘One Team Tangguh’ and ‘How We Operate’, BP may wish

to brand all its community outreach programmes in a simple slogan or title. EPII suggests that an idea

around the concept of being a good neighbour, or how BP supports local communities could be useful.

7.3.4 Quick Wins and Innovation

During the 2014 EPII visit, BP staff identified that they are getting more community requests for education

support. While there are recognised challenges related to infrastructure and teacher salary support,

namely maintenance and sustainability respectively, the provision of books for schools seems like a quick

win. Literacy and numeracy, not only at the primary level but also for adults as the basis for meeting IP

workforce quotas, would be enhanced by the provision of education materials. Books were present in two

schools (one in Tomage and one in Tofoi) but generally not available. Even though printing and provision



31

will need to be fairly regular, there could be large benefits and few downsides to providing educational

materials.

Constructive engagement with and investment in the local IP youth will be critical in meeting the skills

development and local content targets and requirements of the Project. BP should consider including youth

as a cross cutting theme in programming. The UGM demographic findings identify that the population in

the target area is very young. Youth were previously targeted and they are beneficiaries for several

activities across the five program areas and recognising them as a cross cutting theme may provide more

emphasis. As well, sometimes youth who are inactive can ferment unrest so targeting them as key

beneficiaries may help address some of the community sensitivities.

Small technology provision should be considered to a greater degree. There is plenty of information on the

internet related to:

� Solar Energy18

(For Street Lights, Drying Of Agriculture Products, Recharging Batteries, Individual

Lights, Water Heating, Etc.)

� Water Filters For Households And Communities (Like Housing Programs, Aceh Post Tsunami

Recovery Should Have Cultural Appropriate Solutions Related To Water Filtration)

� Improved Stoves (To Address Wood Depletion And Air Quality Related Health Problems)

� Composting Toilets19

(That Would Need To Be Appropriate For Papuan Weather Conditions)

18EPII recognises that Tangguh LNG experimented unsuccessfully with solar ten years ago. However, over the decade the technology has progressed considerably and there are plenty of good news stories. There are likely to be plenty of examples within Indonesia. For inspiration on individual lights that youth and adults can use, check out Little Sun : http://www.littlesun.com/index.php?sec=lamp

19 Check out a surfers without borders website with a design for composting toiles http://www.surferswithoutborders.org/Ecological_Sanitation.html



32

Figure 7.2: EPII recommends that BP provides more school books as a ‘quick-win’ strategy

Source: EPII

7.3.5 Additional Suggestions

Other one off suggestions from EPII arose during the visit. These include:

� Volunteerism and BP staff giving back to the community. The BP idea to collect books from BP staff

and distribute to the schools in the Project area villages is good. Other than having transportation costs

such an activity is likely to only add value. An EPII suggestion is to consider having staff members

sponsor IP school children.

� Health related suggestions are to consider using the malaria cadre to become the tuberculosis cadre,

and to target men through healthy lifestyle campaigns.

� Recognising that community development is not an exact science, include a section in monitoring

reports that emphasises tweaks and lessons learned for improving the program activities.

� Looking ahead to the regency elections, BP will need to be prepared to be flexible in 2015. As

necessary BP may need to adjust programming and communication activities accordingly where

regency government staff inputs are needed. BP may also need to be ready with awareness-creation

materials, and to find openings in Tangguh LNG for IP and Papuan government staff that may be

required to leave their posts. BP may wish to start putting out the word discretely that they could

absorb affected staff.

� Although in the future, the next ISP programme needs to identify stepping back from paying for public

sector responsibilities and moving to “development by the community” as a long term strategic goal.

� Consider establishing a Good Neighbour Agreement20

with villages where you work.

20 The website http://www.cpn.org/topics/environment/goodneighbor.html provides background on these agreements and the type of



33

The review found that Tangguh LNG ISP2 staff and Project leadership recognise the importance of

community relations. They understand the need to work in tandem with local communities not only

because of AMDAL requirements but also to help address the existence of many impoverishment risks in

the working area.

The EPII found considerable evidence of satisfactory effort to implement ISP2 planned activities. Where

there was satisfactory effort, in many cases there was also evidence of satisfactory achievement.

Since 2011, EPII has noted increased responsiveness in the program, to consider how best to meet local

government and local communities needs and priorities. It is not always easy to respond to needs as not

all requests have merit or general acceptance. Responsiveness is essential for ISP2 continual

improvement.

ISP2 staff has embarked on a process to reformulate the program and to align it with the new AMDAL and

lender requirements of the TEP. There is logic and value to the proposed main changes, namely:

� Moving the focus from DAVS to IPs in a wider geographical area

� Using local entrepreneurs for Project services

� Searching for partners to complement the implementing team

� Increasing emphasis on skills development

� Introducing an environmental stewardship program

In particular the move away from DAV terminology is lauded as being a useful conceptualisation for

addressing some of the unintended outcomes. EPII suggests that the next iteration of the ISP2 programme

have more focus on feeding back data and program results to communities. Balancing more in-depth

activities that require longer term commitments and relationships with some quick wins and provision of

technological solutions can also be considered. Currently BP is implementing a range of activities with

various implementers through different mechanisms. However they general have the same overarching

ISP2 goal. Finding a way to unify the activities under an umbrella slogan could be useful.

The process of undertaking the mid-term review has resulted in a menu of suggestions which are collated

in Appendix B. The ISP2 team’s in-depth understanding of their local partners and conditions will help to

identify which of the menu items are worthy of further consideration, either now or as the context and

timing changes.

In conclusion, EPII finds ISP2 to be satisfactory in the relevance of its goals and approach. There is

evidence of large levels of efforts and some good outcomes. Ways to improve the outcomes are being

explored and there are some good ideas on the table, EPII has tried to offer more.

information they can include.

8 Concluding Comments



34

Appendices

Appendix A. EPII Social Team ISP2 Effort & Achievement Ratings ______________________________________ 35 Appendix B. Participation and Adoption Ladders ____________________________________________________ 42 Appendix C. Summary of Key Suggestions _________________________________________________________ 43



35

Appendix A. EPII Social Team ISP2 Effort & Achievement Ratings


334779/TRD/EFR/02/D 20 August 2014 C:\Users\mcl63364\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\DRDZDCPC\Draft Tangguh EP ISP Mid-term Review RevD final _.docx 36

Table A.1: ISP2 Governance Program – Assessment of Effort and Achievement

ISP2 Governance Activity

Effort evidenced by EPII

2= satisfactory effort evidenced

1= Less satisfactory effort evidenced

0 = Negligible or no effort evidenced ISP2 Governance Outcomes

Achievement evidenced by EPII

2= satisfactory achievement evidenced

1= less satisfactory achievement evidenced

0= Negligible or no achievement evidenced

1.1 Training and facilitation for staffs of 6 governmental offices and local planning agency in Teluk Bintuni Regency on strategic plan and working plan

2 Improved performance based development planning and budgeting by government through integrated, participative and representative process

1.5

Implementation is not as successful as when mentors are not present. Planning works at the village level but when village development plans are submitted to district and regency they are not addressed. Local planning for using CAPs funding has been implemented.

1.2 Capacity building for staffs of government offices and local planning agency in Teluk Bintuni Regency on budgeting, financial management through workshop, comparative study and facilitation

2

1.3 Workshop on basic knowledge of oil and gas industry and revenue sharing in West Papua

0

1.4 Facilitation to Regency Head office on participatory planning and development procedures

2

1.5 Capacity building for Teluk Bintuni government agencies on performance management and behaviour change

2

1.6 Facilitation of multi stakeholder dialogue on local development plan in DAVs

1

2.1 Facilitation of workshop on good governance for local stakeholder in Bintuni Bay and Fak-fak District

0 Improved public services on health, education and public administration through transparent and accountable management

1.5

Improvements may be not from transparent and accountable management but probably through provision of resources, both human and financial

2.2 Support to comparative study of Teluk Bintuni government officers in districts and well managed public services

1 – health seems to be on the forefront

2.3 Baseline study and governance assessment in West Papua Province, Bintuni Bay and Fak-fak Regency

1 – it is not clear that Fak-fak has been covered

3.1 Training and facilitation for village government officers on demography administration and SCDP in DAVs

2 Increased awareness by governments and communities in Tanah Merah , Saengga, Onar Baru, and Iratutu III villages about the impacts of in-migration and improved ability to manage it

2 – There has been increased data gathering and awareness, as well as a draft regency policy, but limited management of in-migration

3.2 Socialisation on demography administration and its impact to local community in DAVs through village based campaign and discussion

2

4.1 Public consultation at DAVs on local development plan and accountability of the implementation

2 – This activity is similar to 1.6

Improved participation of civil society in oversight of socio-economic development

2 - Trend of increased Papuan police force in security and



4.2 Assessment of potential and capacity of local stakeholder to implement, manage and mitigate security disturbance at DAVs

1 – BP does this internally process and security management of Tangguh operation (ICBS)

sharing of approach with local gov't and other companies

4.3 Training of voluntary principle of security and human rights for Tangguh guards

2



Table A.2: ISP2 Communication and External Affairs Program – Assessment of Effort and Achievement

ISP2 C&EA Activity




0 = Negligible or no effort evidenced ISP2 C&EA Outcomes





1.1 Regular meeting and consultation with village based stakeholders in DAVs

2 Improved communication and collaboration with local stakeholders to promote the stable operation of Tangguh LNG

1

More feedback would help

1.2a Selected support for local stakeholders to conduct local participatory planning process ('musrengbangs') in DAVs

2

1.2b Capacity building for IP work in YPTP and Dimaga Foundation 1

1.3 Capacity building for village based facilitators in DAVs 2

We assume Village Representatives are the village based facilitators

2.1 Publication of magazines and regular updating of information board in villages and other strategic locations in DAVs

1

There is information about campaigns but not about benefits

Improved awareness of local stakeholders of benefits of the Tangguh LNG presence

1

Local government is quite keen but variable perspectives at the village level

2.2 Capacity building for community radio organisers in DAVs and Bintuni

0

2.3 Production of Tangguh LNG and Tangguh Community Development Video update (2011)

0

3.1 Facilitation for IP art & culture documentation and publication in DAVs

1

Adat leaders acknowledged this activity in 2012 however effort seems to have dropped off because of AMDAL focus and Adat politics

Revitalised local cultural values in tribal groups in DAVs

1

May be difficult for BP to revitalise and maybe efforts should just aim to recognise, respect and make space for local heritage.

3.2 Facilitation for IP’s art and culture events 2



Table A.3: ISP2 Livelihoods Program – Assessment of Effort and Achievement

ISP2 Livelihood Activity




0 = Negligible or no effort evidenced ISP2 Livelihood Outcomes





1.1 Fisheries and agriculture product development in selected villages (e.g. Tofoi and TMB for agriculture; Taroy and Onar for fisheries)

2 Added valuate to the existing livelihoods through production process improvement and product development

2

1.2 Introduction of new crops, techniques and postharvest product processing, supported by provision of related equipment (egg. Otoweri for new prawn hatching tools)

2

2.1 Training on household economy, business and marketing management for women entrepreneurs in DAVs

2 Diversified household livelihoods by family members especially women

2

2.2 Development organisation/cooperatives for women in selected DAVs to management postharvest activities

2

3.1 Mapping of local resources especially in shore areas (egg. Babo, TMB, Tofoi, Saengga, Onar, Otoweri, Weriagar, Mogotira, Taroy)

0 – UGM mapped social and community but not economic entities. May wish to review DFID’s sustainable livelihoods model and map capitals21

Improved access of local community and indigenous Papuan contractors to economic resources including market, financial services, and business related information

1 - BP has indicated it will put more focus on this moving forward

3.2 Provision of financial support to well managed cooperatives and/or local financial institutions. 6 candidates already identified

2

3.3 Facilitation of Papua contractors in management strengthening 2

21 The UK’s Department for International Development (DFID) has useful publications on sustainability livelihoods. Part of their theory is the identification of five

types of capitals: financial capital (money or its substitute), physical capital (buildings, roads, etc.), human capital (individual effort and intellectual ability), social and organisation capital (collective ability and mutual psychology), and natural capital (renewable, non-renewable, and environmental resources).



Table A.4: ISP2 Health – Assessment of Effort and Achievement

ISP2 Health Activity




0 = Negligible or no effort evidenced ISP2 Health Outcomes





1.1 Capacity Building for local health officers and laboratorians on malaria surveillance related skills in DAVs

2 Reduced incidence of malaria, diarrhoea, HIV/AIDs, TB in DAVs

2 - Malaria well covered, but need more resources and data on the other diseases

1.2 Social marketing and campaign on CLTS (community led total sanitation), CTPS (cucitanganpakaisabun) and diarrhoea treatment to local communities in DAVs trough education institutions and primary health service providers

2

1.3 Capacity building for health cadres and field facilitators to be able conducting surveillance in DAVs

2

1.4 HIV education to local community in DAVs 2

2.1 Capacity and institutional building for health cadres of Posyandu in DAVs 2 Improved quality of mother and child health in DAV

2

2.2 Capacity and institutional building for health cadres of Posbumil in DAVs 2

3.1 Promotion/public campaign of clean water processing method in DAVs 0 Improved quality and access of clean water and improved awareness and practices regarding environmental sanitation

1 - Rain harvesting is working but no other infrastructure

3.2 Developing pilot project and applied technology of water processing for households in selected DAVs

0

3.3 Developing exemplary project and partial support for household in building their own toilets in selected DAVs

1

4.1 Provision of partial support for village based primary health service providers based on local assessment in selected DAVs

2 - In some cases, BP’s contractors provide full support

Improved accessibility and quality of primary health service providers

2

4.2 Capacity building for medical personals of primary health service providers on TB and STI in DAVs

2



Table A.5: ISP2 Education and Training Program – Assessment of Effort and Achievement

ISP2 Education and Training Activity




0 = Negligible or no effort evidenced

ISP2 Education and Training Outcomes





1.1 Contribution to capacity and institutional development to schools in DAVS to meet the standard

2 Full implementation of national education system by local government

2

1.2 Capacity building for local officers on education standard, pedagogy, and school based management in Teluk Bintuni Regency

2

2.1 Provision of scholarships to selected potential and qualified students (IP is one of the criteria)

2 Improved attendance of school age children to available education institution

2

2.2 Facilitation of regular meetings of school committees to support student attendance in schools of DAVs

2

2.3 Selected support to school committees in DAVs to promote better education for local students

2

3.1 Livelihood training developed based on the needs of IP and women in DAVs

2 Availability of skilled local people especially indigenous people and women

2

3.2 Training on functional literacy in DAVs 1 - The literacy programme was suspended in 2011

3.3 Selected support to local organisations in Teluk Bintuni Regency to deliver trainings

0



42

The participation ladder below reflects degrees of control over activities with regards to the interaction. The

adoption ladder shows how information gets assimilated and used: data is first needed to create

awareness and from there it gets transformed to eventually be used to affect practice. These ladders are

often modified and reflected by community development practitioners to influence local involvement. Such

ladders, scaling from providing information up to becoming a participant in joint planning, will need to be re-

climbed by new government staff if there are considerable personnel changes.

Figure 8.1: Ladder of Citizen Participation Figure 8.2: Ladder of Adoption from Use of Data

Source: Arnstein, Sherry R. "A Ladder of Citizen Participation"

Journal of the American Planning Association, Vol. 35,

No. 4, July 1969, pp. 216-224.

Source: The Foundation of Communication Strategy Design,

FAO (United Nation’s Food and Agriculture

Organisation)

Appendix B. Participation and Adoption Ladders



43

Suggestions made in this report are include in the following list in no particular order. In some cases, there

are more details, for instance a website reference, in the text.

� BP should find ways to communicate M&E and study results in the Project area, for instance through

non-technical summaries, radio programmes or newsletter articles that the village representative can

post in local communities. As much as possible, photos should accompany the materials. Copies of the

community profiles produced for EPII use should be provided to local village and Adat leaders.

� While communication links exist more effort needs to be given to the message. Providing feedback on

activities undertaken in villages and ensuring consistent messages are shared across the beneficiaries

group, via the village representative or radio, should be considered. BP’s communication team could

produce a monthly key message for all village representatives to share with their community.

� BP should continue to rotate the villages that are visited by groups from outside Papua who are not

contractors and those who will only have temporary relationships.

� Most of the TB and HIV/AIDs efforts are focused on awareness for women or children. Creative ways

of involving men in general training should be sought, for instance via healthy lifestyle topics or adding

the sessions on to livelihood activities, or via radio.

� Recognising that CAPs has helped develop many buildings in many villages, more emphasis on

maintenance is needed or it could become a significant risk. Suggestions include house and building

maintenance training course (using a local building to get hands on experience), having a revolving

loan fund, negotiating more agreements with local government departments to take on maintenance

and long term funding of social service facilities, inclusion of internships for local community members

on contractor teams, and the organisation of “volunteer” work days where a group of people meet to do

the upkeep.

� Maintenance of human relations and efforts is also essential. Supporting local champions through

recognition (for instance, perhaps BP can find something similar to “employee of the month” for local

communities, or produce certificates of appreciation given at an annual community meeting), building

on strengths, reinforcing mentoring advices with messages (even for instance with text reminders) may

all help.

� BP should try and capture government cost sharing in programs as a monitoring and evaluation

indicator.

� If the local elections bring a change of political party, BP will need to redesign its communication

program to address new needs. Reflecting on levels of participation and adoption of new knowledge

should be used to inform communication activities.

� BP should make more efforts to find uncontentious ways of providing support to Adat related issues.

Activities that could be considered include identifying an Adat liaison officer (and sending the officer for

conflict mediation training), printing more copies of the Adat related stories, and holding youth fun days

that are carried out in tribal languages. As well, BP’s idea to support a camp with Adat leaders and

youth sounds excellent.

� BP is encouraged to consider taking a lead on establishing a formal local forum for the O+G

companies to share experiences and to the extent possible use similar approaches.

� While BP understandably prefers to stay hands off of Terare after the recent experience, it is a local

Papuan NGO and there are few of them. It might be worth trying to identify a low risk activity that

Terare could be asked to undertake to build some of its programming capability.

Appendix C. Summary of Key Suggestions



44

� When moving services offsite, lessons learned from introducing local food supplies to Tangguh LNG

should be helpful: go slow and begin with pilots to ensure quality as well as balance between supply

and demand.

� Keep looking for services that can be moved from Jakarta to the Project area. One idea is printing. BP

could search out Bintuni and Fak-fak based companies willing to take a loan (perhaps through BP with

limited interest) to upgrade printing equipment. Providing some guaranteed printing contracts at the

same time might be an incentive. Be sure to not over flood the market with printing equipment.

� Adding partners such as USAID and UNDP should help reduce some beneficiary dependency on BP.

Partners could provide strategic advantages that contractors often cannot because of the subordinate

type of relationship

� BP should rethink support being considered through a North Shore Housing program. House

improvement activities could include identifying a range of house designs, identifying contractors and

typical prices for various renovations, having a loan fund with minimal interest, providing training on

household maintenance, and having a showcase building or mobile unit that exhibits water, sanitation

and energy technology. The “Habitat for Humanity” model which is based on volunteerism, community

cohesion and requires beneficiaries to contribute to their and others’ houses through working time may

also be attractive. Aceh post-Tsunami reconstruction should provide a large body of lessons learned

and best practice related to housing.

� EPII encourages greater focus on skills development. Suggestions include: adapting a “bring your

child to work day” type activity to target young teenagers looking ahead at livelihood options, producing

a book that pictures and describes the types of occupation that are available to children including

Tangguh LNG jobs, putting some focus on staff retention by considering community infrastructure in

places where local workers live and by considering the provision of counselling services for IP workers

who want to quit but whom the company or contractors are interested in retaining.

� Addressing ecosystem services and linking livelihoods to biodiversity is an excellent idea. Suggestions

include consideration of community forests or nurseries, an anti-littering campaign, and finding ways to

minimise the many disposal items that are on the LNG site.

� Just as the operations team has “One Team Tangguh” and “How We Operate”, BP may wish to brand

all its community outreach programmes in a simple slogan or title. The concept of good neighbour or

how BP supports local communities could be useful.

� There could be large benefits and few downsides to providing educational materials on a regular basis.

� IP youth are necessary to meet the skills development target. BP should consider including youth as a

cross cutting theme in programming.

� Small technology provision should be considered to a greater degree. There is plenty of information on

the web related to solar energy (for street lights, drying of agriculture products, recharging batteries,

individual lights, water heating, etc.), water filters for households and communities, improved stoves

and compostable toilets.

� The BP idea to collect books from BP staff and distribute to the schools in the Project area villages is

excellent BP could also consider having staff members sponsor IP school children.

� For health suggestions, the malaria cadre might be able to become the tuberculosis cadre. Targeting

men through some form of healthy lifestyle campaign may be effective.

� BP should include a section in monitoring reports that emphasises tweaks and lessons learned for

improving the program activities.



45

� Looking ahead to the regency elections, BP may need to adjust communication and activities

accordingly where regency government staff inputs are needed. BP may also need to be ready with

awareness creation materials for new staff. BP may wish to start putting out the word discretely that

they could absorb affected staff.

� Looking into the long term, ways to step back from paying for public sector responsibilities should be

identified.

Documents

Tangguh LNG Project E&S External Panel II (2011-2016) · Mid-term Review RevD final _.docx ... (AMDAL) commitment. The overall objective of this report is to assess the direction