Indonesia Water Sector Adjustment Loan (WATSAL)
From SEA.unu.edu/wiki
Background and objectives
The Government of Indonesia decided that several sectors, including the water sector, needed significant reform. They requested financial and technical support from the World Bank through a Sector Adjustment Loan. The Bank task team and counterparts in Indonesia undertook a voluntary pilot SEA for the project. The goals of the assessment were to:
● Inform the government and Bank management of the environmental risks associated with the policy reforms.
● Prescribe mitigation and monitoring procedures to soften adverse impacts.
● Ensure that people affected by the reforms were given a voice in formulating the analysis.
Approach
● Representatives from NGOs, academia, government, and the public together defined the terms of reference of the consultation process. Participants agreed on the principles and method for the assessment.
● Preparatory visits were then made to the provinces and districts, while case materials were prepared for dissemination to the stakeholders throughout subsequent rounds of consultation.
● The first round of consultation was held at three levels – province, district, and village – to inform the groups of the purpose and process of the loan and policy reforms, as well as identify possible impacts and devise measures to counter them.
● A draft sectoral EA report was then prepared.
● A second round of consultations followed with the same groups to share findings of the report, seek final recommendations, and record opposing views.
● A national meeting of representatives from government, NGOs, and public organisations was convened to discuss the WATSAL principles and the draft sectoral EA report.
● The final version of the report was produced. It included proposals for alternatives and mitigation for each policy reform item.
Outcomes
This approach contained several elements of SEA good practice as it was:
● Focused and well-timed. The consultation process started early enough to influence final decisions while not delaying the WATSAL.
● Transparent. The study fostered dialogue and openness by including all stakeholders in the discussions and process.
● Participative. Stakeholders from all regions and levels of society and government participated.
● Influential. Many of the suggestions emerging from the consultations were included in the final design of the loan’s reform agenda.
Source: World Bank (1999, 2000).
(Reproduced with permission of OECD.)
