ADB Asian Development Bank Indonesia Resident Mission our Ref 091284716 Mr. Soebagiono Director for Road Networks Development Directorate General for Highways Ministry of Public Works Jl. Pattimura No.20 Kebayoran Baru — Jakarta Selatan Dear Mr. Soebagiono: Loan 2817- INO: Regional Roads Development Project Social and Environmental Issues - Request for Coordination Recently our office of Independent Evaluation Department (IED) visited the subprojects in Central Java and West Kalimantan provinces. There are some key findings related to the implementation of social safeguard in Central Java, and environmental issues at the Asphalt Mixing Plant (AMP) in West Kalimantan. Central Java: The entitlement gaps between the LARP and implementation in Central Java, had been identified in several ADB missions, and were communicated to the PMU and the safeguard team under the CTC. However, corrective actions as recommended by ADB and indicated in the safeguard monitoring report have not yet been implemented. As the subprojects in Central Java is being financed by the Islamic Development Bank (IsDB), we would suggest that IsDB be involved to monitor the safeguard compliance as agreed in the LARP. To address the outstanding safeguard issues, we would appreciate if the PMU could please organize a coordination meeting between the PMU, IsDB, ADB, the PPKs and the consultants West Kalimantan: The observation revealed that the management of waste oil and tar from the ‘AMP by the contractors at the Sosok-Tayan (Package CW-05), and Singkawang - Sambas (Package CW-07) at Boga (near Sambas) sites was not done properly. The waste has potentially polluted the vicinties. Currently, the waste oiltar is pooling next to these plants without any proper containment or treatment. In the case of Boga, the waste is draining offsite to a canal. This situation may possibly happen in other subprojects. These issues can be remedied. We would appreciate your urgent action to follow up with the PMU, the CTC, DSC and the respective PPKs under RRDP to review and to check, the respective AMP waste treatment. Please also take proper actions to minimize any further negative environmental impact under RRDP. Attached are some pictures of the waste at AMP. Please do not hesitate to contact Soewartono, HS, Senior Project Officer, ADB/IRM if you need further assistance. Siete Steven R. Tabor Country Director Indonesia Resident Mission cc. Mr Hedlyanto W. Husaini, Director General for Highways, MPWH (fax: 021-739-3838) Mr. Slamet Mulyone, Deputy PMU-RROP (fax: 021-722-0260) PMU Office (fax: 024-722-0260) Garret Kilroy, Evaluation Specialist, IED/ADB. "Team Consultant (email cterrdp@amail. com) ISHSINMles} GGHng BR), 7 Floor, Send. Sudeman ta +6221 251.2721 adirm@add.o19 kat 44-86, Jakarta 102%0, indonesia Fax +62 21251 2789 ‘awed orgtim