The Tannguh LNG Project is a natural gas development project located in the Berau-Bintuni Bay region of Papua Province, Indonesia. The project is currently in the pre-construction phase, with commercial operations scheduled to commence in 2007. For more background to this project, see our Location Report which can be found on the BP website, bp.com.
The existing environment in the Berau-Bintuni Bay area is socially and environmentally complex. Public services are severely limited. The bay itself is a rich natural resource, but much of the onshore areas are wetlands that are characterised by high ecological significance and limited carrying capacity for human settlement. These factors imposed restrictions on the search for a suitable LNG refinery site.
After a search that considered more than 30 potential sites, the only area deemed feasible for project development was a site located mid-way along the bay’s south shore. This area encompasses Tanah Merah, a predominantly indigenous costal community with 591 residents. Following extensive consultations in 1999, the residents of Tanah Merah agreed to undergo resettlement. In addition to Tanah Merah Village, two other small communities will be affected, but not actually physically displaced, by Tanah Merah’s resettlement.
International best practice requires resettlement projects to at least restore incomes and living standards to pre-move levels. The Tanah Merah Resettlement Programme seeks to go beyond this benchmark and to actually improve incomes and living standards such that resettlement-affected communities are better off than before the move.
The land acquisition process was conducted in accordance with Indonesian law and policies in force at the time. The resettlement programme is being carried out in accordance with the BP business policies, the Special Autonomy Law for Papua, Indonesian law and international best-practice standards.
We are using the World Bank’s Impoverishment Risk and Livelihood Restoration (IRLR) Model as a planning matrix, to analyse poverty risks and formulate strategies to overcome them. An Advisory Panel provides the project with detailed advice and assistance in programme planning. The Panel is also engaged in an oversight and assurance role throughout the resettlement implementation phase.
The Tangguh Project is conducting the resettlement as a long-term development programme with emphasis on community participation in all phases, including consultation, census activities, planning, design, construction, income continuity programming and monitoring. To ensure participation and balanced information sharing, the project interfaces routinely with the Tanah Merah Resettlement Committee, a specially formed body comprised of 20 members chosen by the community.
The project provided a choice of resettlement sites and accommodated the community’s express desire to resettle in two separate locations. The community contributed substantive input into the designs of their community facilities and houses. Over 50 community members have received skills training for employment in the village and plant construction.
Rigorous data collection and research has been a fundamental part of the programme. In cooperation with the project-affected communities, the Tangguh Project identified natural resources, mapped traditional land boundaries and inventoried physical assets to be replaced. Various surveys have analysed the communities’ culture, environment, health status and livelihoods from agriculture and fisheries. This information has contributed to an in-depth understanding of livelihood strategies and social structures, which in turn guides programming and provides benchmarks for on-going monitoring and evaluation.
The Tanah Merah Resettlement Programme describes three distinct types of measures to mitigate impoverishment risks associated with land acquisition and resettlement:
- Compensation
- Replacement
- Development investment
Cash compensation was paid to three Simuri clans who relinquished traditional hak ulayat land rights; to the owners of tree crops; and to the Tanah Merah community for sago stands. An Indonesian charitable foundation (yayasan) has also been established to accommodate a long-term endowment fund for the benefit of the three clans.
Replacement of assets foregone will include village land, house plots with certified title, houses, village facilities, water, electricity, sewerage, gardens and access to natural resources.
Development investment will aim to ensure income continuity and improve livelihoods and living standards. Programmes in this area pertain to capacity building, skills training, employment, support for government services (such as health and education), and support for agriculture, fisheries and community-based enterprises.