Tanzania - Songo Songo Gas Development Project - resettlement plan (Vol. 1 of 8) : Resettlement programme and plan

RP-58 VOL. 1 GOVERNMENT OF THE UNITED REPUBLIC OF TANZANIA Songo Songo Gas to Electricity Project Resettlement Programme & Plan Rev. 1 December 1997   Songo Songo Gas to Electricity Project Resettlement Programme & Plan Prepared for: TPDC and the Government of the United Republic of Tanzania Edited by: a) PLAN:NET 2000 Ltd. Suite 201, 1225a Kensington Road NW Calgary, Alberta Canada T2N 3P8 Tel: (403) 270-0217 Fax: (403) 270-8672 e-mail: plannet@cadvision.com b) OTC 55 Yonge Street 8th Floor Toronto, Ontario Canada M5E IJ4 Tel: (416) 869-2152 Fax: (416) 869-2196 Based on: Research conducted by the University College of Lands and Architectural Studies (UCLAS) - formerly the Ardhi Institute Edited by Plan:net 2000 Ltd. & OTC on behaHf of TPDC & the GoT   Songo Songo Gas to Electricity Project Resettlement Programme & Plan RESETTLEMENT PROGRAMME & PLAN TABLE OF CONTENTS GLOSSARY OF TERMS & ABBREVIATIONS Page EXECUTIVE SUMMARY .....................1 1. RESETTLEMENT OBJECTIVES.... 3 1.1. Avoidance. . . 3 1.2. Compensation. . . 3 1.3. Replacement. . . 4 2. OVERVIEW OF THE SONGO SONGO PROJECT. 4 2.1. Investment Partners. . . 4 2.2. Project Benefits to Tanzania.. . 5 3. DESCRIPTION OF THE RESETTLEMENT PROGRAMME .... 5 3.1. Urban Resettlement.. 5 3.1.1. The Resettlement of Urban Households .. 6 3.1.1.1. Selection of Resettlement Areas. 6 3.1.1.2. Participatory Approach in Drawing up Planning Schemes .6 3.1.1.3. Sub-Division of Farm Lots in the Plan Areas .7 3.1.1.4. Plot Acquisition Process in the Resettlement Areas. 7 3.2. Rural Resettlement. . . 8 3.2.1. Resettlement of Rural Households .. 4. FRAMEWORK FOR COMPENSATION & RESETTLEMENT .... 10 4.1. Legal Framework . . . 10 4.1.1. World Bank Requirements ..10 4.2. Statutory Framework for Land Acquisftion in Tanzania . . . 10 4.2.1. Legal Documentation ..11 4.3. Scope of Compensation Under Consideration ..11 4.3.1. Farm Land ..11 4.3.2. Crops .. 11 4.3.3. Dwellings .. 11 4.3.4. Disturbance Allowance .. 11 4.4. Main Cost Areas Under the Resettlement Programme .12 4.5. Community Dimensions of the Project . . .13 4.6. Environmental Stewardship in the Project . . . 13 5. ORGANIZATION & MANAGEMENT ....14 5.1. Management Structure . . . 14 5.2. Management & Reporting Systems .15 5.2.1. Progress Reporting ..15 5.2.2. Financial Reporting.. 1 6 5.2.2.1. Project Management Accounting .16 5.2.2.2. Audit Procedures .16 Edited by Plan:net 2000 Ltd. & OTC on behal of TPDC & the GoT Table of Contents Page 1 of 2  Songo Songo Gas to Electricity Project Resettlement Programme & Plan TABLE OF CONTENTS (continued) PEge 6. IMPLEMENTATION OF RESETTLEMENT PROGRAMME . . ....................................... 16 6.1. Way-leave Acquisition ...................................................... . 16 6.1.1. Objectives ...................................................... 1 6 6.1.2. Management of the Way-leave Acquisition Component . . 17 6.1.3. Land Acquisition Method ...................................................... 17 6.1.3.1. Phase 1-Planning ...................................................... 17 6.1.3.2. Phase 2-Field Operations ...................................................... 18 6.1.3.3. Phase 3 - Finalization & Dispute Resolution ................................... 19 6.1.3.4. Phase 4-Management of Infrastructure Development in the Resettlement Areas ............................................ 19 6.1.3.5. Phase 5-Acquisition of Way-leaves for Pipeline Water Crossings ......................................... 20 6.1.4. Field Reporting .......................................................2o 6.1.5. Dispute Reporting ....................................................... 20 6.1.6. Special Way-leave Bank Account ...................................................... . 20 6.2. Resettlement Component ....................................................... 21 6.2.1. Objectives ...................................................... 21 6.2.2. Management of the Resettlement Component . ............................................. 21 6.2.3. Resettlement Operations ....................................................... 21 6.2.3.1. Stage 1 - Plan Approval ...................................................... . 21 6.2.3.2. Stage 2- Construction of Infrastructure in the Resettlement Areas ............................................ 22 6.2.4. Field Reporting ...................................................... 22 6.3. Schedule of Resettlement Programme . ..................................................... 23 6.4. Resource Requirements ...................................................... 24 6.4.1. Personnel ....................................................... 24 6.4.2. Training ...................................................... 24 6.4.3. Field Team Discipline ...................................................... 24 List of Figures 1-1 Pipeline Route 3-1 Salasala & Kinyerezi Resettement Location 3-2 Location of Rural Communities Affected 5-1 Management Structure & Breakdown of Activities List of Tables 3-1 Summary of Rural Land Requirements for House Construction 4-1 Summary of Resettlement Programme Cost Estimates 6-1 Key Milestones of the Resettlement Programme 6-2 Personnel Requirements List of Appendices Appendix 1 Socio-economic Conditions in the Resettlement Areas Appendix 2 Programme of Infrastructure Development in the Resettlement Areas Appendix 3 Team Objectives, Structure & Processes for Acquiring the Way-leave Appendix 4 Selected Bibliography Appendix 5 Sample Legal Documentation Edited by Plan:net 2000 Ltd. & OTC on behaff of TPDC & the GoT Table of Contents Page 2 of 2  Songo Songo Gas to Electricity Project Resettlement Programme & Plan GLOSSARY OF TERMS & ABBREVIATIONS EHS Environment, Health & Safety GoT Government of the United Republic of Tanzania h h Household(s) MoLHUD Ministry of Lands, Housing & Urban Development OTC Ocelot & TransCanada PipeLines (A Joint Venture) PVC Poly vinyl chloride RC Reinforced concrete Songas A limited corporation to be established in Tanzania to operate the Songo Songo Project facilities TANESCO Tanzania Electric Supply Company Limited TCPL TransCanada PipeLines Limited TPDC Tanzania Petroleum Development Corporation Tshs. Tanzanian Shillings (1 US$ = Tshs. 630) UCLAS University College of Lands & Architectural Studies (formerly the Ardhi Institute) WB World Bank Edited by Plan:net 2000 Ltd. & OTC on behalf of TPDC & the GoT   Songo Songo Gas to Electricity Project Resettlement Programme & Plan EXECUTIVE SUMMARY The Songo Songo Gas to Electricity Project requires the construction of a natural gas pipeline and related facilities. This report sets out the Government of Tanzania's plan regarding the compensation and resettlement of households directly affected by the overland portion of this pipeline. The report provides the basis for approval of the resettlement component of the Project. and is essential for the Project's continuation. Approval of this plan is required for the conclusion of financing arrangements through the World Bank. While every effort was made during the formative stages of the Songo Songo Project to establish a pipeline route that minimizes the resettlement of residents, 183 households living in the Dar es Salaam region will have to be relocated, as will a further 33 households living outside the Dar es Salaam region. A further 2,301 households will be compensated as a result of losing a portion of their land/productive capacity, but will not be required to relocate. Background socio-economic data on the urban households and their communities is attached in Appendix 1. The pipeline route is shown in Figure 1-1, at the end of this summary. Urban residents directly affected by the proposed pipeline live within the planned 30 m way-leave which passes through the periphery of Dar es Salaam north of the Tazara railway line. Even though a significant proportion of family income is derived from intensive agriculture, this area is heavily populated. A 1988 census, which constitutes the most up-to-date information available, shows a population density of 977 per square kilometre. However, these figures are almost certainly outdated given the population movements of the last few years. Services and utilities in the affected area are typically over-stretched. Rural residents directly affected by the proposed pipeline live within the planned 60 m way-leave south of the Tazara railway line, stretching to Somanga Funga in the South. The corridor is lightly populated in the south, with the population density progressively increasing toward Dar es Salaam. The 1988 census shows a population density of 10 per square kilometre in the Lindi Region in the south and 20 per square kilometre in the neighbouring Pwani Region adjacent to Dar es Salaam. Rural residents rely predominantly on subsistence, and particularly in the more northerly areas, cash crop farming to support their families. The resettlement programme involves primarily peri-urban households in Dar es Salaam City, specifically those along sections of the pipeline route starting north of the Tazara Railway at Gongolamboto and ending at Wazo Hill. Within this area, two sites have been selected for resettlement-Kinyerezi and Salasala. These relocation sites were recommended to the Project by the Ministry of Lands, Housing and Urban Development, and have now been approved by the representative bodies of the affected citizens and by the Dar es Salaam City Council. Less intensive resettlement is required along the rural section of the way-leave, south of the Tazara Railway from Somanga to Gongolamboto. Displacees are those whose land has been encroached upon substantially-that is, leaving less than half an acre untouched after the creation of the gas pipeline way-leave of 60 metres. All 33 households have participated in the selection of alternative sites and the owners of those sites have been contacted. Edited by Plan:net 2000 Ltd. & OTC on behaHf of TPDC & the GoT Page 1 of 24  Songo Songo Gas to Electricity Project Resettlement Programme & Plan This resettlement plan is organized into two parts, namely, acquisition of the pipeline way-leave, and resettlement. Regarding way-leave acquisition, all the groundwork has been prepared to compensate those households which will be affected by the pipeline. The pipeline route has now been finalized, as have a series of socio-economic, environmental and valuation surveys. Part of this plan sets out the process and schedule by which those affected households will be paid and given notice to relocate. The resettlement component addresses the activities associated with preparing the resettlement sites to receive those displaced by the construction of the pipeline. Resettlement sites have been identified for all affected households. Urban resettlement sites have been surveyed for physical and community infrastructure, in order that these new communities can service their newcomer residents at a level that is at least equivalent to that enjoyed in their former neighbourhoods. This plan sets out the process and schedule by which the resettlement sites will be prepared to receive the displacees. Costs associated with the way-leave compensation programme and the first phase of the resettlement programme are estimated at approximately US$7 million. Edited by Plan:net 2000 Ltd. & OTC on behalf of TPDC & the GoT Page 2 of 24  Figure 1-1 PIPELINE ROUTE a Yo -. IENKA - -A RJ- ' '';>: lu ; XS ji ZANZIBAR *.st2!d A ~ m1 n XZanzibar Island 'am zAlaAJ~~~~~~~~~~ ~ ~ ~ .g ~~(Unguja) Ub~.Dar es 5Ropowd Naw w_ DAR ES SALAAM W ZAMBLA A 2w ~~~0 z 44 z MAFIA Songo Songo Island and Gas * Gas Wells and c~Processing Plant   Songo Songo Gas to Electricity Project Resettlement Programme & Plan 1. RESETTLEMENT OBJECTIVES The GoT recognizes that projects which displace people involuntarily can potentially give rise to economic and social hardships and be detrimental to the environment. It further recognizes the World Bank's policy, as stated in Operational Directive OD 4.30, to ensure that people displaced by a project such as Songo Songo receive benefits from it, and that the quality of life of those people affected by the pipeline is restored and even improved. Accordingly, the GoT has set out three overriding objectives to guide the resettlement work: avoidance, compensation and replacement. These objectives are described in more detail below. 1.1. Avoidance l The GoT will attempt to minimize the need for relocation and resettlement that imay be caused by the installation of the natural gas pipeline and related facilities. Comprehensive route surveying and public consultation undertaken during the preparatory phase of the Resettlement Programme have lead to refinements in the original routing of the pipeline. Overall, the proposed pipeline route avoids settled areas. However, in Dar es Salaam, the route unavoidably affects some neighbourhoods. Here, where passage through an urban area was unavoidable, a route was selected to avoid heavily built-up neighbourhoods and make use of existing way-leaves, where possible. Since the original way-leave route was selected in 1994, preparatory field teams have consulted affected residents on ways to mitigate the impact of the pipeline. As a result, changes have been made to the width of the way-leave and to the route originally selected to further minimize the numbers of people and families displaced. Originally, a 60 m way-leave was surveyed by field teams along the complete pipeline route from Somanga Funga to Ubungo and on to Wazo Hills. This was subsequently reduced to 30 m in the Dar es Salaam area from Gongolamboto northwards. In addition, the route was altered to make use of TANESCO's existing way-leave for the high tension transmission line at Kimara/Ubungo. 1.2. Compensation The GoT will compensate all displaced households for loss of lands and crops, and disturbance to their household activities prior to their actual movement from their original location. In total, 175 households will need to be relocated from along the pipeline route. In general, these households are located near the power plant itself and in Gongolamboto. Construction of the pipeline will require the use of all or part of their land as well as removal of their houses. They will be compensated for homes that have to be removed and crops that are damaged or lost. Families with farmland within the way-leave will be provided with land that will allow them to continue farming. Other families, for whom less than 50% of the land is affected, will not be required to move. They may be temporarily affected during the construction period and will be compensated for any loss of crops or damage that occurs within the 30 m way-leave. Edited by Plan:net 2000 Ltd. & OTC on behaHf of TPDC & the GoT Page 3 of 24  Songo Songo Gas to Electricity Project Resettlement Programme & Plan 1.3. Replacement |The GoT will assist displaced households to restore their former living standards.| In the urban areas, resettlement sites will need to be upgraded to provide services equivalent to those enjoyed by displaced residents in their original neighbourhoods. The GoT has completed plans to upgrade the two urban resettlement sites. These plans include access roads and the supply of water and electricity. The infrastructure programmes for these two areas are described in Appendix 2. Resettlement sites in the rural areas will not require any particular preparation with respect to the provision of utilities and services. For the most part new sites have been identified and acquisition negotiations already completed. 2. OVERVIEW OF THE SONGO SONGO PROJECT In October 1995, Ocelot International Tanzania Ltd. and TCPL Tanzania Limited, in partnership with the Government of Tanzania (GoT), Ministry of Energy and Minerals (MEM), Tanzania Electric Supply Company Limited (TANESCO) and Tanzania Petroleum Development Corporation (TPDC), agreed to create a company called Songas to implement the Songo Songo Gas to Electricity Project. Songas will develop the Songo Songo gas field in Kilwa District, Lindi Region of Tanzania, construct gas processing facilities on Songo Songo Island and transport natural gas to Dar es Salaam where it will be used as the principal fuel supply for five gas turbine electricity generators. The pipeline will then continue northward to supply the Wazo Hill Cement Plant. The anticipated date for project completion is late 1999. The Project Implementation Plan should be referred to for a complete description of the Project. This report covers specifically the resettlement consequences of the acquisition of the way-leave for the onshore section of the 300 mm pipeline from Somanga Funga to Ubungo, and the 150 mm pipeline from Ubungo to the Wazo Hill cement factory. 2.1. Investment Partners The Ocelot/TCPL (OTC) investor group combines the technical and financial resources of Ocelot Energy Inc. and TransCanada PipeLines Ltd., two well-established Canadian companies who are fully qualified to implement and operate all aspects of this important US$350 million project. TransCanada and Ocelot will invest US$50 million in equity shares in Songas, earning a return on their investment by successfully constructing and efficiently operating the Project for 20 years. Other investors include the International Development Association (IDA) and donor financial institutions (DFIs) which include the European Investment Bank (EIB), Commonwealth Development Corporation (CDC), Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), International Finance Corporation (IFC), and the Canadian International Development Agency (CIDA), as well as TPDC and TANESCO. The development of this plan was commissioned by the GoT. Edited by Plan:net 2000 Ltd. & OTC on behalf of TPDC & the GoT Page 4 of 24  Songo Songo Gas to Electricity Project Resettlement Programme & Plan 2.2. Project Benefits to Tanzania The Songo Songo Gas to Electricity Project represents the first commercial enterprise in Tanzania to make use of indigenous petroleum resources. While helping to create value for Tanzania by developing an important natural resource, the Project will also serve as a mechanism to transfer the skills and technology needed to provide a sound basis for further exploration, production and use of natural gas in Tanzania. The Project will benefit all regions of the country. The GoT has negotiated a suite of project agreements that it believes will ensure the Project benefits Tanzania. These benefits include: * meeting the growing demand for electricity in Tanzania using a domestic natural resource; * reducing the country's dependence on imported oil for electric power generation; * providing an alternative, lower cost, cleaner and more reliable power source than the existing diesel power sources;