INDONESIA: Oceans for Prosperity Project – LAUTRA (P173391) Implementation Support Review November 25 – 26, 2024 Aide Memoire   I. INTRODUCTION 1. The Implementation Support Mission for the Oceans for Prosperity Project – LAUTRA was held on November 25 - 26, 2024 in Bogor. A list of participants is presented in Annex 1. The Mission’s objectives were to: (1) Review the progress of implementation of AWP 2024, including project coordination, staffing, monitoring and evaluation; (2) Review the performance on procurement and financial management, and Environmental and Social risk management, including implementation of activities in the Environmental and Social Commitment Plan; (3) Finalize the TORs of priority activities in AWP 2025; (4) Agree on actions to accelerate the project implementation and disbursement. 2. The World Bank task team thanks the Government of Indonesia (GOI), in particular Dr Hendra Yusran Siry (Senior Adviser to Minister on Ecology and Marine Resources Affairs), Dr. Kusdiantoro (Secretary to the Directorate General of Marine Spatial Management/DJPRL), Directorate General of Capture Fisheries/DJPT and Directorate of Aquaculture/DJA of the Ministry of Marine Affairs and Fisheries (MMAF), and Dr Rahmat Mulianda, Director of Marine and Fisheries, BAPPENAS. 3. The Mission findings were jointly reviewed by and agreed with MMAF and ICCTF - Bappenas and the World Bank team at a wrap-up meeting held on November 26, 2024, which was chaired by Dr Hendra Yusran Siry, Minister’s Expert Staff. The final version of the Aide Memoire was endorsed by the World Bank management. II. PROJECT DATA AND RATINGS   Table 1: Key Project Data and Ratings as of December 13, 2024 Project Data USD (millions) Original Project Amount (loan)   210 Original Project Amount (Grant) 10 Total Disbursement (Loan + Grant) (1.62 + 2.15) Disbursement in FY 3.07 Closing Date  31 March 2028   Project Ratings: Previous Current PDO Moderately Moderately Satisfactory Satisfactory Overall Implementation Progress Moderately Moderately Satisfactory Unsatisfactory Component 1: Infrastructure and Institutional Moderately Moderately Strengthening for Sustainable Marine Protected Satisfactory Unsatisfactory Areas Management 1 Component 2: Expanding Economic Opportunities Moderately Moderately in and around Marine Protected Areas Satisfactory Unsatisfactory Component 3: Sustainable financing for Marine Satisfactory Satisfactory Protected Areas and Livelihoods Component 4: Project Management Moderately Moderately Satisfactory Unsatisfactory   III. IMPLEMENTATION PROGRESS AND KEY FINDINGS Overall Implementation Progress: 1. The project effectiveness date is May 17, 2023. Project implementation has been delayed for 15 months due to 1) multiple adjustments to the Year one Annual Work Plan caused by changes in direction within MMAF and 2) first budget allocation from Ministry of Finance only be made available in August 2024. Despite these challenges this Mission was informed that the GOI remains committed to LAUTRA. Shortly after the inauguration of Indonesia’s new administration in October 2024 with the re- appointment of Minister Trenggono to lead MMAF, the PMO Chair of LAUTRA (DG of Marine Spatial Management) had instructed his team to accelerate the implementation of LAUTRA. The Minister also prioritizes LAUTRA as the Minister’s Special Adviser , Dr Hendra Yusran Siry present throughout and led the mission’s discussions. The PMO is currently conducting a weekly coordination meeting with all PIUs to ensure smooth implementation. 2. The Mission noted that after 15 months of budget restriction by MOF, MMAF was finally able to access the IBRD-loan funding (DIPA/state budget) of USD 1.62 million in August 2024 and USD 0.09M OMDTF grant for use in September – December 2024 (GOI fiscal year runs from January until December). Due to the short timeframe and limited budget made available, the majority of foundational/priority TA activities (consulting services) that were previously planned to be implemented in 2024 were shifted to 2025, with the exception of two priority activities under Component 1: TA for Coral Reef Rehabilitation and TA for Development of Master Plan for Ocean Monitoring System (OMS) in Savu Sea. The rest of project activities in 2024 are self-managed by MMAF (Training and Workshops, Incremental Operating Cost). 3. Because of the 15-month budget restriction, disbursement of the IBRD-loan has been slow, and the project implementation is not on track. The recent government transition which included Presidential instructed austerity measures also hampered disbursement volume such that the MOF only approved USD 1.7 million for implementation in 2024 (September – December 2024). As of November 2024, 34% of this allocation has been fully expended, and MMAF confirmed during the mission that there is strong likelihood of reaching 90% of this amount by December 31st, 2024. There is similarly low disbursement of the OMC TF (USD 0.09 million) as it is connected to the IBRD-loan activities, but improved disbursement is expected as part of the 2025 disbursement plan. However, for the PROBLUE TF (implemented by ICCTF-Bappenas), there is a significant progress as USD 2.06 million or 41.2% of total PROBLUE grant has been disbursed with satisfactory progress in spending and achievement of outputs (see Component 3 sections for details). 4. MOF has approved a budget allocation of USD 19 million for LAUTRA for Calendar year 2025, which MMAF plans to fully disburse by June 2025 to enable request to MOF by July 2025 for additional budget (budget top-up is subject to final approval from Indonesian Parliament). There is a risk that the project will disburse less than 10 percent of the total IBRD-loan funding by the time it reaches mid- 2 term review (expected cumulative disbursement in PAD is USD 95M by 2026). To mitigate this risk, the World Bank and MMAF agreed that MMAF will hire a Project Management Consulting (PMC) Firm to speed up project implementation. The PMC is expected to be onboard by May 2025. The availability of PMC will enhance MMAF’s readiness to secure budget top-up in the second half of 2025 and strengthen PMO’s capacity for accelerated and effective project implementation. Other agreed measures to accelerate implementation includes: (a) MMAF to consider few large procurement packages rather than multiple small packages (for example combining the C1.2 TA Small-Scale Tools and Technologies and TA Fisheries Infrastructure Needs and Monitoring Equipment) ; (b) MMAF to ensure that ToRs and bidding documents for AWP 2025 8 priority activities are ready by January 6, 2025 (list of priority activities: update of MPAs management plans, master plan for MPA infrastructure, MPA cost and benefits analysis, blue carbon assessment, fisheries monitoring assessment, business incubator, community mobilization implementing partners, project management consulting firm); (c) launching the procurement for AWP 2025 priority activities in January 2025. 5. The project aims to have the 8 priority/foundational activities launched in January 2025, which will allow for project implementation acceleration and for the infrastructure and civil works to commence in the second half of calendar year 2025. Commencement of civil works will significantly increase disbursements. The Bank team continues to provide intensive monitoring and technical support for the finalization of TORs and bidding documents of priority activities. The Bank hired an additional Procurement STC (consultant) to support LAUTRA’s procurement activities and will hire within Q1 2025 an experienced technical consultant to provide daily support to MMAF to speed up process of developing high quality TORs and timely submission on the World Bank’s procurement system (STEP) to commence procurement. The Bank and MMAF had also agreed to develop a standard template TOR for non-priority TORs, as well as provide a procurement coaching clinic for all PIUs and UPTs/MPA Management Units in January 2025. 6. The Mission was informed that the operationalization and integration of LAUTRA’s OMS with the nation-wide Big Data System remains the Minister’s top priority. The Bank team confirmed that OMS is part of LAUTRA’s design, however, a master plan that informs the needs and specifications would be required (the procurement for the development of this master plan in Savu Sea, as the pilot location, has been launched and is expected to be completed by April 2025) to ensure the sustainability of such technology, prior to any purchase of goods and civil works. Since the procurement of OMS goods and civil works (expected around USD 10 million) was not included in the approved AWP 2025, MMAF will conduct a LAUTRA Steering Committee Meeting by the end of December 2024 to discuss the options of requesting a budget top-up from MOF. MMAF agreed to raise the issue of slow disbursement and low budget allocation during this meeting of the Steering Committee. 7. Despite the slow disbursement, some progress towards the achievement of PDO Indicator 1 (Enhancing Sustainable Management of Selected Marine Protected Areas and Coral Reef Fisheries) has been made using GOI budget. In the EVIKA Report 2024, MMAF provided evidence that the score of management effectiveness in several target MPAs has increased (PDO Indicator), and a Public Service Agency (BLU) has been established for one of the targets MPA Management Unit (Intermediate Result Indicator). The implementation of PROBLUE-funded Component 3 (Blue Finance), implemented by ICCTF-Bappenas, is progressing well (reports provided by ICCTF to the Bank). Details are provided in the Components chapter below. Component 1: 5. Overview: Low disbursement and significant delay in commencement of activities results in a moderately unsatisfactory rating. The Mission noted that Component 1 has made some progress against the PDO objectives by using GOI budget. The Bank received reports from MMAF that management 3 effectiveness in four of the project’s target MPAs totaling 3,694,387.89 hectares have received improvements in their EVIKA rating between 2022 – 2024. KKPD Teluk Maramo moved from bronze level management effectiveness (39%) to silver (56%). KKN Kapoposang moved from silver level management effectiveness (68%) to gold (89.27%). KKN Laut Sawu moved from silver level management effectiveness (75%) to gold (92.26%). KKN Kepulauan Waigeo Sebelah Barat moved from silver level management effectiveness (73%) to gold (88.69%). More details are presented in a table in Annex 3. Improvement of management effectiveness in 44% (3,694,387 hectares) of the total area of LAUTRA MPAs (8,363,392 hectares) with expectation of improvement/maintenance of high level of management effectiveness is a demonstration of MMAF’s strong commitment to achieve the PDO objective of LAUTRA i.e., improving the management effectiveness of MPAs in Indonesia. In addition, a Public Service Agency (BLU) was established for one of the MPA Management Unit (Alor MPA), legally enabling the MPA Management Unit to undertake commercial, not for profit activities, with revenues publicly reported and reinvested into MPA management; a model that the project is promoting. However, critical analytics and planning activities under the project have been delayed, which in turn will delay the identification of specifications for the goods and civil works that will be procured by the project during subsequent years. 6. Implementation progress: 1) Two priority consulting services have commenced: TA Development of Coral Reef Rehabilitation Plan and TA Development of Master Plan for OMS Savu Sea; 2) MPA biophysics monitoring and surveillance/patrolling (self-managed by MPA management units) in 7 National MPAs using IBRD-loan funding is ongoing. The utilization/disbursement level out of total 2024 budget allocation for each National MPA Management Unit (UPT) is 42.96% for BPSPL Denpasar, 67.60% for BPSPL Makassar, 47.64% for LPSPL Sorong, and 83.69% for BKKPN Kupang. 7. Challenges and mitigation: The most prominent challenge to implementation has been the late and low budget allocation in 2024. Consequently, almost all of the priority technical assistance (consulting services) that are critical for the subsequent development of infrastructure and civil works had to be shifted to 2025. A secondary challenge is the lack of capacity of the PMO in quickly preparing quality Term of Reference with sufficient details (scope of works, outputs) to ensure the quality of services delivered by the consultants later. The Bank team is currently providing technical assistance to mitigate this issue, through hands-on support in drafting the priority TORs. The Bank had also hired an additional Procurement STC (consultant) to support LAUTRA’s procurement activities and will hire in January 2025 an experienced technical expert to assist with drafting the 2025 AWP non-priority TORs (please see Overall Implementation Progress) 8. Key Agreed Next Steps: Agreed next steps and actions are summarized in Table 2. The most critical action is the finalization of priority activities TORs and commence procurement of 2025 priority activities. The priority activities are categorized into five work streams: (i) review and update of MPA management plans (ii) preparation of infrastructure master plans for each MPA; (ii) assessment of MPA management costs / cost-benefit analysis; (iii) evaluating the potential of seagrass blue carbon to contribute to MPA revenues; (iv) needs assessment for fisheries infrastructure; and (v) needs assessment for SSF monitoring. The Mission agreed to conduct a TOR and procurement planning coaching clinic to help prepare non-priority AWP 2025 TORs by end of January 2025. Component 2: 9. Overview: Overall, progress is rated as moderately unsatisfactory. Some preparation activities have progressed using the LAUTRA 2024 budget (IBRD-loan), namely the launch of procurement of the Technical Management Consultants, and further assessment by the MMAF team of potential site locations in Sabu Raijua. However, the Mission noted that critical analytics and planning activities that are expected to initiate community development projects in pilot sites have been delayed, and which in 4 turn will delay the identification of specifications for the goods and civil works that will be procured by the project during subsequent years. 10. Implementation progress: Component 2 has yet to make progress against the project objectives. Critical consultancies that are expected to provide inputs to subsequent project activities have not yet been mobilized. The Mission reviewed MMAF’s findings from recent socio-economic baseline assessment in pilot sites (Sumba, Rote, Kupang/Semau, Sabu Raijua and Manggarai), and WB’s findings from the marine tourism economic assessment in Raja Ampat and Alor (below referred as Economic Assessments), and agreed on the following priorities: i. Procurement of a Technical Management Consulting (TMC) firm was launched in October 2024. The TMC is expected to be onboard by end of January 2025. ii. MMAF has conducted baseline survey to pilot sites (Sumba, Rote, Kupang/Semau, Sabu Raijua, Manggarai), and identified priority locations and commodities which should be included in the TORs for Implementing Partners. In addition, the WB executed marine tourism study identified priority locations and activities in Raja Ampat and Alor. iii. MMAF will finalize the TOR for Implementing Partners for subcomponents 2.1 and 2.2 for target districts / villages around key sites in Savu Sea, Alor, and Raja Ampat (based on the Economic Assessments). iv. MMAF and the World Bank will have a follow up technical workshop to review findings of the Economic Assessments and finalize TORs by January 6, 2025. 11. Challenges and mitigation: The most prominent challenge to implementation has been slow progress in drafting and advertising TORs for project activities. A secondary challenge is the current lack of coordination on site selection and site-specific planning between Component 1 and 2 teams. The mission agreed on the need to address the latter challenge through more integrated planning and coordination, supported by TMC, which is expected to be on board by end of January 2025. 12. Key Agreed Next Steps: Agreed next steps and actions are summarized in Table 2. The most critical actions are finalizing and advertising TORs for 2025 priority activities in the agreed locations (Sabu Raijua, Kupang, Raja Ampat, and Alor). The agreed priority activities are (i) economic and market assessment; (ii) Implementing Partner (for community mobilization for village planning); and (iii) business incubator. Component 3: 13. Overview: Implementation of C3 is satisfactory as significant progress has been made in procurement of key consultancies, and achievement of milestones since the last mission. The Blue Finance Advisory Committee (BFAC) is established, most planned consultancies are underway, with some other deliverables achieved such as policy briefs on blue budget tagging and blue fiscal transfer. At least 37 personnels from bank and non-bank financial institutions were trained (67.6% women) on blue finance. 14. Implementation Progress: As of November 2024, 58% or (or $837,317) of the 2024 budget allocation has been disbursed, with expectation that this value will reach 92.31% by the end of 2024 as financing strategies consultants meet their milestones before the end of December 2024. The rest of the undisbursed budget was due to market realities and the lower cost of the contracts in reality as against the work plan. Procurement for consultancy for the Monitoring and Reporting Framework for Blue Investments is well-underway and expected to be completed by March 2025. BFAC will continue annual meetings in Q1 CY2025 particularly to align the BFAC with the ministerial arrangements of the President Prabowo administration. Consultancies for the three financing strategies are underway and submitted progress reports on the three financing strategies (MPAs, Coastal Infrastructure and MSMEs). Individual consultants (Financial Integration Specialist, Blue Carbon Policy Specialist and 5 Blue Finance Technical Specialist) were hired. Recently, the consultancy for the Blue Public Expenditure Review was also contracted in November 2024. PIU also submitted the finalized policy notes and recommendations including: (i) policy brief on blue budget tagging to accelerate implementation of blue economy (ii) innovative blue fiscal transfer policy note for the development of coastal economy (iii) policy recommendations on blue economy implementation in the 2025-2029 National Mid-term development plan (iv) policy brief on blue carbon value realization as non-tax revenue streams, and (v) policy recommendations for financing the blue economy under the Priority “Astacita� framework of the government. 15. Challenges and Mitigation: the first challenge identified during the mission relates to the need to amend the BFAC Decree to align with changes in the Cabinet Nomenclature of the newly elected government. This will be resolved with the revision of the Decree to reflect current realities and include the addition of new relevant members to the BFAC. Increasing coordination between C3 and other components (1&2) of LAUTRA remains a challenge that was highlighted during the mission. It was agreed that PMO coordination meetings will be leveraged to improve collaboration between PIUs and synchronize achievement of deliverables. The PIU also reported procurement delays with certain Consultant Services as the activities are follow-up to some ongoing activities that are not finalized. PIU is proactively managing contracts to ensure firm alignment and optimization of time. Another issue discussed is the likelihood that the PIU will request a no-cost extension of the closing date of the Component 3 grant (September 2025), now that the closing date of PROBLUE has been extended. The implementation support team encouraged PIU to continue to focus on delivering on project milestones which will make defining the justification for requesting an extension of the grant in 2025 easier to take to the WB leadership and to PROBLUE. 16. Key Agreed Next Steps: Agreed next steps and actions are summarized in Table 2. The most critical action is ensuring the financing strategies consultants meet milestone to facilitate increased disbursement of 2024 budget to 92 percent. The Mission agreed that consultant outputs related to MPA CAPEX/ OPEX assessments would be made available to inform Component 1 activities and procurements. Component 4: 17. Overview: Overall, progress is rated as moderately unsatisfactory due to significant delays in securing budget allocation for the project and delays in completing the staffing of the PMO and preparing quality ToRs for project activities. The PMO is monitoring the project through weekly coordination meetings participated by all PIUs and MPA management units (UPTs), as well as facilitating technical discussions on the finalization of activity TORs and advance procurement for 2025 activities. The hiring of project management (individual consultants) at PMO-MMAF is ongoing, and all individual consultants at PIU-ICCTF are onboard. 18. Implementation Progress: Aside from the slow disbursement, some implementation progress has been made by: (i) the AWP for 2025 (USD 19 million; as per indicative 2025 budget allocation from MOF) was submitted to the World Bank on 11th November 2024, to which the Bank had provided Conditional NOL; (ii) one Procurement Specialist at PMO and 8 Project Assistants at MMAF’s sub-national office (UPT) are onboard; FM Specialist will be onboard in January 2025 - the positions of PMO Team Leader, Gender Specialist, and Social Safeguard Specialist are being re-advertised due to lack of applicants; (iii) the NMC draft TOR is available, expected to be finalized by 31st December 2024 (iii) FM, Procurement, and ESF trainings had been successfully conducted by the end of November 2024. An additional Procurement Training on TOR drafting is expected to be conducted by end of January 2025; (iv) standard ToR template has been developed. 6 19. Challenges and Mitigation: Involvement of and socialization to sub-national governments (despite the establishment of PPSU/project provincial unit) is delayed, this may impact ownership/support from sub-national government which is important for project sustainability. The Bank is encouraging PMO to conduct at least one sub-national socialization event by end of December 2024. 20. Key Agreed Next Steps: Agreed next steps and actions are summarized in Table 2. The most critical actions are the finalizing the selection of PMO Team Leader, finalizing TOR and advertising of NMC, and socialization to PPSUs (provincial governments). Financial Management: 21. The FM rating is Moderately Unsatisfactory, mainly due to the delay in release of budget from MOF, which led to the delayed disbursement and implementation of activities. The following are the project disbursement and expenditures under the loan and grants as of December 12, 2024. DA balance Total Disbursement to as of 12 % expenditure to total % Disbursement Expenditures Loan/Grant DAs December loan/grant 2024 (USD) IBRD 9498 200,000,000 1,620,000 1% 679,662 940,337 0.47% TF C0495 1,150,000 90,000 8% 27,052 62,947 5.47% TF C0368 5,000,000 2,061,730 41% 1,232,463 829,266 16.59% 22. Disbursement. During the mission, the 2024 DIPA absorption compared with the allocation are as follows: Loan at 34%, TF OMC at 58%, and TF PROBLUE at 56%. The project is optimist they can utilize the budget more until end of the year. The 2025 DIPA is expected to be issued on December 4, 2024, with allocations set at $15.7 million for the loan, $2.1 million for TF OMC, and $1.1 million for TF PROBLUE. IFRs have been received with slight delays for the loan and on time for the grants. There is an issue with calculating the cash advance under the loan as the PIUs does not provide the cash needed to the PMO. 23. FM Training. Training has been conducted in December 2024 with all PIUs of MMAF attended to train them on preparing the estimated cash needed based on the approved AWP and activity progress, such as procurement stages and payment schedules. The PIUs should submit the estimation cash needed to the PMO timely to avoid delay in IFR preparation, no later than 15 days after the end of the quarter. The PMO and the PIU Bappenas should complete the project annual financial statements by February 28, 2025, with audit reports due to the Bank by June 30, 2025. A refund from the 2023 audit findings related to TF PROBLUE was already transferred in October 2024. 7 Procurement: 24. Procurement management. The procurement rating is Moderately Satisfactory. The mission noted that the project experienced delay in the procurement process under Component 1, 2, and 4 due to delay in budget availability. In year 2024, there are 18 procurement activities under the project and the details are as follow: Component Under Preparation Procurement Process Signed Contract 1, 2, 4 4 2 3 3 2 0 7 The MMAF informed that there are three (3) failed bidding process due to no qualified candidate for the position of PMO Team Leader, Social Safeguard, and Gender Specialist. The Procurement Committee (Pokja) will re-advertise these positions and the Bank’s mission team suggest advertising in broader media, this includes MMAF’s social (e.g. LinkedIn). MMAF informed that there will be 104 procurement activities in year 2025 and the Bank’s mission team suggested to consolidate the similar in nature and small value activities into one bigger activity to streamline the procurement process and contract management. The Bank’s mission team also suggest Pokja and technical team of MMAF to discuss the scope of works, technical requirements, and/or evaluation criteria so that Pokja have better understanding the substance of the TOR prior to start the selection process. 25. Procurement training. Based on the needs, the Bank will provide thematic procurement training to Procurement staff of Procurement Service Unit (UKPBJ), Commitment Holder (PPK), and other related staff during project implementation. Environment and Social Risk Management/ Safeguards: The mission noted the major findings and recommendations are summarized as follows: 26. Personnel/Resource for Environmental and Social (E&S) management: The Terms of Reference (TOR) for the Social Safeguards Specialist to be posted at PMO level has been approved by the Bank, however the recruitment’s process of the Social Safeguards Specialist is reportedly pending due to lack of applicants and re-tender will be carried out by December 2024 and the Specialist is expected to be on board by the first quartal of 2025. The Annual Work Plan (AWP) for 2025 has included budget provisions for Environmental Specialist, Environmental and Social Safeguards Assistants (4 persons) to be posted at each PIUs or UPT levels. It is advised that the recruitment process to hire the environmental and social safeguards specialist and those four environmental and social safeguards assistance to be expedited to support project implementation. Similarly, the mission recommended expediting the formal appointment of the remaining E&S and GRM Focal Point at PIU and UPT/UPTD level to support safeguards implementation. 27. E&S Training: An Environmental and Social Workshop (E&S Workshop) was conducted in 16-17 October 2024 in West Nusa Tenggara, which combined classroom sessions and field practice. The workshop was attended by E&S focal points from all PIUs and involved E&S specialists of the Bank as the resource persons. During the workshop, the E&S screening process, including the discussion of screening template/document, for the proposed activities in the AWP FY2025 of each PIUs has also been conducted where most activities under AWP FY2025 includes study and survey and no physical construction works. The PMO targeted all E&S screening for FY2025 will be completed at the end of December 2024. In addition to the E&S Workshop, an AWP workshop was also conducted on September 2024 that also included a session about E&S risk management. 8 28. Incorporating E&S aspects in TA activities: The Bank has reviewed TOR for short term consultancy for Master Plan Preparation and incorporated E&S aspects in the TOR that includes such as, among others, infrastructure proposed in the Master Plan will not create environmental and social risk and impacts that are outlined in the negative list provided in the ESMF, proposed locations for the proposed infrastructures should be assessed to ensure clarity of land ownership and to conduct land due diligence to confirm whether the proposed locations is on clean and clear status; to engage relevant stakeholders at national, subnational and site level, including local communities in the development of the master plan. During the AWP Workshop 23-25 September 2024, the World Bank has advised that master plan and subsequent DED development to also include E&S safeguards specialists. 29. Implementation of Stakeholder Engagement: The mission noted the implementation of stakeholder engagement in the project especially under Component 1 regarding MPA management, such as consultation and FGDs of the review of management plan as well as on community-based monitoring of MPA. The AWP2025 also includes budget for updating stakeholder mapping tagged to Component 1. 30. Grievance Redress Mechanism (GRM): Following up on the ESF requirement for the provision of GRM, the PMO has socialized this requirement to the PIUs during the E&S workshop and the PIUs have agreed to provide GRM at the subnational and field levels, either using existing grievance channels or providing new channels. The effectiveness of the GRM will be reviewed throughout the project implementation. The PMO also socialized the importance of PIUs to appoint a GRM focal points. The Bank reminded to record feedback or grievances received by provided channels and include in the implementation report the aggregate data of feedback/grievance received. PMO will prepare a template for socialization of GRM at subnational or field level by end of December 2024. 31. E&S Monitoring Report: During the E&S workshop, PMO has socialized the requirement of the project to PIUs to prepare a regular monitoring reports on the implementation of the actions outlined in the ESCP, including implementation of environmental, social, health and safety (ESHS), E&S Screening, status of preparation and implementation of E&S instruments required, stakeholder engagement activities, and functioning of the grievance mechanism(s) including grievance received and its response (grievance log). The ESCP required that the E&S monitoring report be submitted to the Bank every six months. PMO agreed to send the first E&S Monitoring Report to the Bank by end of January 2025. IV. NEXT STEPS AND AGREED ACTIONS 32. Table 2 below summarizes the next steps and agreed actions. Most critical next steps are: 1) commencing by January 6, 2025 the procurement for the 8 priority TA (consulting services) of AWP 2025 which are required for project implementation acceleration (including commencing the procurement for NMC) and the subsequent infrastructure development and civil works; 2) consolidate and launch the procurement of 2025 non-priority activities by February 15, 2025; 3) finalizing hiring of PMO Team Leader; 4) submission of PROBLUE grant no-cost extension request; 5) use the opportunity of the next LAUTRA Steering Committee for MMAF to discuss with Ministry of Finance the issue of low DIPA budget allocation and what MMAF should do to secure larger DIPA allocation, more aligned with the project needs, in the future; 6) holding 6-montly meetings with Project Provincial Supporting Units to socialize the project at the local level. 9 Table 2: Summary of Agreed Actions   Actions Responsible Due Date Component 1 1 Submit drafted priority TORs for consulting services to World Bank via PMO Jan. 6, 2025 STEP 2 Identify and delegate PIUs expert staffs to support PMO procurement team during shortlisting of consultant services to maintain quality of PMO Ongoing consultants hired Component 2 3 Complete procurement of TMC PMO Jan. 30, 2025 4 Draft and finalize TORs for C 2.1 and 2.2 activities in 3 priority PMO Jan. 6, 2025 locations Component 3 5 Conduct Annual BFAC meeting including the revision of the BFAC ICCTF February 2025 Decree to align with new government realities 6 Complete the contracting of consultant for development of financing ICCTF March 2025 instrument proposal and engagement with Ministry of Finance 7 Complete the contracting of consultant for development of monitoring ICCTF March 2025 and reporting framework for blue finance 8 Ensure the financing strategies consultants meet milestone to facilitate ICCTF Dec. 31, 2024 increased disbursement of 2024 budget to 92 percent Component 4 9 Submission of Revised AWP 2025, in response to WB Conditional PMO Completed NOL 10 Hold 6-montly meetings with Project Provincial Supporting Units to PMO From Dec. 2024 socialize the project at the local level 11 Finalize NMC TOR and start procurement PMO Jan. 6, 2025 12 PMO Team Leader, Safeguard Specialist, Gender Specialist onboard PMO Jan. 6, 2025 13 Setting of M&E and baseline and share with the WB the Results PMO Jan. 30, 2025 Framework with current value for each indicator. 14 Update of SK PMO and PIU PMO Feb. 27, 2025 10 15 Submission of Progress Report PMO Feb. 27, 2025 16 Monthly coordination meeting PMO and PIUs PMO ongoing 17 Submission of PROBLUE grant no-cost extension request ICCTF February 28, 2025 18 Discuss the low DIPA allocation issue at the next Steering Committee MMAF, MOF Dec. 30, 2024 Environment and Social 19 Hire Environmental Specialist (budget included in AWP2025) and re- PMO March 2025 tender Social Safeguards Specialists for PMO. 20 Hire Environmental and Social Safeguards Assistants for each PIU (4) PMO and PIUs March 2025 21 E&S screening of AWP FY2025 activities to be submitted to the Bank PMO and PIUs Dec. 31, 2024 22 Activate and socialize GRM at PIU levels and appoint GRM focal point PMO and PIUs March 2025 at PMO and PIU levels 23 Send to the Bank the first E&S monitoring report. PMO Jan. 30, 2025 Financial Management 24 Finalize 2024 AWP Revision for Loan and TF C0495 PMO Completed 25 Submission of 2024 Q1 IFR PMO Completed Procurement 26 The Bank provide procurement training to the UKPBJ, PPK and other WB, PMO Jan. 30, 2025 related staff of MMAF. 27 Conduct procurement planning and TOR coaching clinic to help finalize PMO, WB Jan. 30, 2025 non-priority AWP 2025 TORs 28 Consolidate and launch the procurement of 2025 non-priority activities PMO Feb. 28, 2025   Annexes: Annex 1: List of WB and GOI participants Annex 2: Status of 5 largest procurement packages Annex 3: Status of LAUTRA MPA Sites in 2024 as Evidence of Progress towards Achievement of PDO Indicator 1 Annex 4: Additional information on implementation progress per component   11 Annex 1: List of World Bank Participants World Bank No Full Name Job Title Email Address Sr. Natural Resources Management abrenier@worldbank.org 01 Ambroise Brenier Specialist (Task Team Leader) Natural Resources Management 02 Yadranka Farita yfarita@worldbank.org Specialist Marine Conservation Specialist 03 Andrew Harvey andrew@oceanect.com (Consultant) 04 Hannah Duncan Coastal Livelihoods Specialist hduncan@worldbank.org 05 David Aromokeye Environmental Specialist daromokeye@worldbank.org 06 Feng Ji Sr. Environmental Engineer fji@worldbank.org 07 Francisca Melia S Social Development Specialist fsetiawati@worldbank.org Social Development Specialist 08 Naimah Lutfi A.T ntalib@worldbank.org (Consultant) 09 Oceans Program Analyst Dias Natasasmita dnatasasmita@worldbank.org (Consultant) 10 Angelia Budi anurwihapsari@worldbank.or Procurement Specialist Nurwihapsari g 11 Senior Financial Management Christina I. Donna cdonna@worldbank.org Specialist 12 Ariphoerti awoerasihingtija@worldbank. Program Assistant Woerasihingtijas org 12 List of GOI participants No Name Job Title Institution Senior Adviser to Minister on Dr Hendra Yusran 1 Ecology and Marine Resources MMAF Siry Affairs Secretariat DJPRL, DJPKRL, 2 Dr Kusdiantoro Secretary Directorate DJPRL MMAF Directorate of Maritime Affairs Dr Mohamad Rahmat 3 Director for Marine and Fisheries and Fisheries, Deputy KSDA, Mulianda Kementerian PPN/Bappenas Raden Tomi Associate Expert Planner Sekretariat DJPRL, DJPKRL, 4 Supratomo (Perencana Ahli Madya) MMAF Expert Planner (Perencana Ahli Sekretariat DJPRL, DJPKRL, 5 Ari Pariyanto Madya) MMAF Sekretariat DJPRL, DJPKRL, 6 Lantip Wratsangka Statistisi Muda MMAF Muhajah Babny Sekretariat DJPRL, DJPKRL, 7 Perencana Ahli Pertama Muslim MMAF Pengelola Ekosistem Laut dan Direktorat KKHL, DJPKRL, 8 Amehr Hakim Pesisir Ahli Madya MMAF Pengelola Ekosistem Laut dan Direktorat KKHL, DJPKRL, 9 Ririn Widiastutik Pesisir Ahli Muda MMAF Pengelola Ekosistem Laut dan Direktorat KKHL, DJPKRL, 10 Reky Pramudya Pesisir Ahli Pertama MMAF Analis Pengusahaan Jasa Kelautan Direktorat KKHL, DJPKRL, 11 Mamur Ahli Muda MMAF R. Bambang Adhitya Analis Pengusahaan Jasa Kelautan Direktorat Jasa Kelautan, 12 Nugraha Ahli Madya DJPKRL, MMAF Analis Pengusahaan Jasa Kelautan Direktorat Jasa Kelautan, 13 Enggar Sadtopo Ahli Madya DJPKRL, MMAF Analis Pengusahaan Jasa Kelautan Direktorat Jasa Kelautan, 14 Titus Pramono Ahli Madya DJPKRL, MMAF Siti Nuraini Utami Analis Pengusahaan Jasa Kelautan Direktorat Jasa Kelautan, 15 Putri Ahli Muda DJPKRL, MMAF Pengelola Ekosistem Laut dan Direktorat P4K, DJPKRL, 16 Fegi Nurhabni Pesisir Ahli Madya MMAF Barnard Ceisaro Pengelola Ekosistem Laut dan Direktorat P4K, DJPKRL, 17 Purba Pesisir Ahli Muda MMAF Direktorat P4K, DJPKRL, 18 Novi Susetyo Adi Surveyor Pemetaan Ahli Madya MMAF Pengelola Ekosistem Laut dan Direktorat P4K, DJPKRL, 19 Bagus Afrianto Pesisir Ahli Pertama MMAF Pengolah Data Penyusunan Direktorat P4K, DJPKRL, 20 Budiman Pelaporan Monitoring dan Evaluasi MMAF 13 21 Uki Basuki Analis Kebijakan Ahli Muda Sekretariat DJPB, DJPB, MMAF Direktorat Perizinan dan 22 Novitria Setyawati Analis Kenelayanan Kenelayanan, DJPT Balai Besar Riset Sosial Cornelia Mirwantini 23 Analis Kebijakan Muda Ekonomi Kelautan dan Witomo Perikanan, BRSDMKP, MMAF Plt. Kepala Pusat Data Statistik dan Pusat Data Statistik dan 24 Aulia Riza Farhan Informasi Informasi, Setjen, MMAF Pusat Data Statistik dan 25 Romy Ardianto Pranata Komputer Muda Informasi, Setjen, MMAF 26 Arinta Dwi Hapsari Analis Sumber Daya Ikan Direktorat PSDI, DJPT Direktorat Kelautan dan 27 Rahma Tri Benita Perencana Ahli Pertama Perikanan, Kedeputian KSDA, Kementerian PPN/Bappenas Direktorat Pendanaan Multilateral, Deputi Pendanaan 28 Heni Apriani Perencana Ahli Pertama Pembangunan, Kementerian PPN/Bappenas Directorate of Multilateral Funding, Deputy for 29 Aniadela Wulandhanti Staff Development Funding, Kementerian PPN/Bappenas 30 Dr Tony Wagey Direktur Eksekutif ICCTF 31 Baso Hamdani Project Team Leader ICCTF 32 Anggri Heravanthi Financial Management Specialist ICCTF 33 Susi Rusmiati Program Officer Lautra ICCTF Planning, Monitoring and 34 Steven ICCTF Evaluation Officer 35 Latzio Muhammad UKPBJ Staff Bappenas 36 Hendri Rifai UKPBJ Staff Bappenas 37 Fajar Dinihari UKPBJ Staff Bappenas 38 Yuni Purwaningsih UKPBJ Staff Bappenas 39 Yanuar Adiantoro UKPBJ Staff Bappenas 40 Mega Rama Operation and Grant Manager ICCTF 41 Nursyaf Rulliandra KAPOKJA VII Bappenas 42 Alya Prima Staff ICCTF 43 Syafira Neyla Staff ICCTF 44 Agus Salim Staff ICCTF 14 45 Sugihartono Staff ICCTF 46 Imam Fauzi Kepala Balai BKKPN Kupang Muhammad Ramli 47 Kepala Subbagian Umum BKKPN Kupang Firman Analis Pengusahaan Jasa Kelautan 48 Amos Moi Ponggalo BKKPN Kupang Ahli Muda Thri Heni Utami Pengelola Ekosistem Laut dan 49 BKKPN Kupang Radiman Pesisir Ahli Muda Lenni Maretta Analis Pengusahaan Jasa Kelautan 50 BKKPN Kupang Sitinjak Ahli Muda Pengelola Ekosistem Laut dan 51 Yongky Lapon BKKPN Kupang Pesisir Ahli Pertama Wiyudha Pandu Pengelola Ekosistem Laut dan 52 BKKPN Kupang Laksana Pesisir Ahli Pertama Pengelola Ekosistem Laut dan 54 Windu Merdekawati BKKPN Kupang Pesisir Ahli Pertama Pengelola Ekosistem Laut dan 55 Aji Nugroho BKKPN Kupang Pesisir Ahli Pertama Muhammad Akhid 56 Perencana Ahli Pertama BKKPN Kupang Yunanto 15 Annex 2: Status of the Top 5 Priority Procurement Packages Item Example of goods/services to be Status delivered 1. Infrastructure and equipment Ocean Monitoring System Expected to commence in Q4 for MPA management (command center/software, 2025, after TA master plan for (subcomponent 1.1) control tower, patrol boat, radar, MPA infrastructure drone, etc.) 2. Infrastructure and equipment Fisheries data collection Expected to commence in Q4 for coral-reef associated facilities and software 2025, after TA for needs fisheries (subcomponent 1.2) assessment 3. Infrastructure and equipment Cold storage, fish processing Expected to commence in Q4 for village economic activities unit, fish market facilities, 2025, after TA for development (subcomponent 2.1) seaweed processing unit/drying of village plans rack, solar panel, etc. 4. Development of blue finance Financing strategies for MPA, Ongoing documents/strategies Coastal Livelihoods, and (subcomponent 3.1) MSMEs 16 Annex 3: Status of LAUTRA MPA Sites in 2024 as Evidence of Progress towards Achievement of PDO Indicator 1. Bronze EVIKA rating: <50%; Silver EVIKA rating: 50% - 85%; Gold EVIKA rating: >85%. No. MPA Area (ha) 2022 2023 2024 EVIKA EVIKA EVIKA Score (%) Score Score (%) 1 KKN Gili Matra 2,268.58 82.00 88.71 89.75 2 KKN Laut SAWU 3,355,352.82 75.00 88.52 92.26 3 KKD Selat Pantar (Alor) 276,693.38 82.00 88.20 92.95 4 KKN Laut Sulawesi Bagian Utara 697,000.00 N/A N/A N/A (Proposed) 5 KKPD Teluk Gorontalo 76,529.35 39,97 6 KKPD Benggai Dalaka 856,649.13 55.00 68.00 53,49 7 KKPD Teluk Moramo 21,902.34 39.00 49.00 56.00 8 KKN Kapoposang 49,923.55 68.00 85.27 89.27 9 KKN Laut Banda 2,501.98 65.00 74.00 79.04 10 KKN Aru Tenggara 94,874.14 59.00 72.00 70.15 11 KKPD Pulau Kei Kecil 150,000.00 62.00 74.00 71.58 12 KKPD Babar (Proposed) 371,837.79 N/A N/A 13.43 13 KKPD Wetar (Proposed) 350,000.00 N/A N/A N/A 14 KKPD Buru Selatan (Proposed) 87,774.17 N/A N/A N/A 15 KKPD Buru (Proposed) 112,068.96 N/A N/A N/A 16 KKPD Pulau Mare 7,060.87 67.00 63.00 66.73 17 KKN Kepulauan Raja Ampat 57,875.76 81.00 86.76 85.42 18 KKN Kepulauan Waigeo Sebelah 267,209.18 73.00 85.00 88.69 Barat 19 KKPD Kepulauan Raja Ampat 1,348,459.47 88.00 92.00 88.69 20 KKN Padaido 177,411.35 85.81 17 Annex 4: Additional information on implementation progress per component List of Component 1 TORs and their status Component 1 Sub No Name Status PIC Comp. TOR drafting in 1 MPA Cost and Benefit Analysis 1.1 Dir. KKHL progress Review and update of MPA 1.1 Drafted, awaiting 2 Dir. KKHL management plans upload to STEP Mapping and assessment of seagrass 1.1 Drafted, awaiting 3 Dir. P4K blue carbon habitats upload to STEP 1.1 Drafted, awaiting 4 Master Plan for MPA Infrastructure Dir. KKHL upload to STEP Preparation of zoning plans and species 1.1 Drafted, awaiting 5 inventories for reserved MPAs in Dir. KKHL upload to STEP Maluku Master Plan for Ocean Monitoring 1.1 Dir. KKHL 6 Contracted System (OMS) in Savu Sea Development of Coral Rehabilitation 1.1 7 Contracted Dir. KKHL Plans Stakeholder mapping, identification of 1.1 stakeholder capabilities, design of Drafted, awaiting 8 Dir. KKHL partnership projects, design of impact upload to STEP evaluation in target MPAs Data Collection Strategies and 1.2 TOR drafting in 9 Technologies for Coral Reef progress (09 and 10 Dir. SDI Associated Fisheries are merged) 1.2 TOR drafting in Coastal Fishing Ports Infrastructure/ 10 progress (09 and 10 Dir. SDI Facilities Needs Assessment merged) 14 Incentives for Fisheries Data Reporting 1.2 To be developed Dir. SDI 15 Regulatory Strengthening 1.2 To be developed Dir. SDI 16 ADLFG Assessment 1.2 To be developed Dir. SDI 17 EAFM Assessment 1.2 To be developed Dir. SDI Component 2 Sub No Name Status PIC Comp. TOR drafting in Dir. 1 2.1 Economic Assessment progress JASKEL 18 Will be merged with Dir. 2 2.1 economic JASKEL Market Assessment assessment Kampung LAUTRA Implementing TOR drafting in Dir. 3 2.1 Partner progress JASKEL TOR drafting in Dir. 4 2.1 Business Incubator progress JASKEL Procurement in Dir. 5 2.2 Technical Management Consultant progress JASKEL Sustainable seaweed farming viability Drafted, awaiting Dir. 6 2.2 and ALDAG assessment upload to STEP JASKEL Component 3 Sub No Name Status PIC Comp. 1 Finance Strategy for MPA 3.2 Contracted ICCTF Finance Strategy for Coastal 2 3.2 ICCTF Infrastructure Contracted Finance Strategy for SMEs/Financial 3 3.2 ICCTF Intermediaries Contracted 4 Public Expenditure Review 3.1 Contracted ICCTF Procurement in 5 3.1 ICCTF Monitoring, Evaluation and Reporting progress Technical Support Consultant for Blue 6 3.1 ICCTF Finance Advisory Committee Contracted Proposal financing instrument and Procurement in 7 3.2 ICCTF engagement with MoF progress Integrate financing requirements in 8 3.2 ICCTF government's 5-year strategy (RPJMN) Contracted Policy roadmap to enhance carbon 9 value in MPA and policy 3.1 ICCTF recommendations Contracted 19 Component 4 Sub No Name Status PIC Comp. PMO - MMAF Procurement in 1 4.1 progress (re- PMO Project Leader advertised) 2 Project Assistant 4.1 Person on board PMO 3 FM Specialist 4.1 Contracted PMO 4 Procurement Specialist 4.1 Person on board PMO TOR drafted, 5 4.1 awaiting upload to PMO Monev Specialist STEP Drafted, awaiting 6 4.1 PMO Environmental Safeguard Specialist upload to STEP Procurement in 7 4.1 progress (re- PMO Social Safeguard Specialist advertised) Procurement in 8 4.1 progress (re- Gender Specialist advertised) PIU - ICCTF 1 Project Team Leader 4.2 Person on board ICCTF 2 Project officer 4.2 Person on board ICCTF 3 FM Specialist 4.2 Person on board ICCTF 4 Procurement Specialist 4.2 Person on board ICCTF 5 Monev Specialist 4.2 Person on board ICCTF 6 Finance and Admin Officer 4.2 Person on board ICCTF 20