Ghana - Thermal Power Project : resettlement action plan (Vol. 2 of 2) : Compensation and resettlement plan

GOVERNMENT OF THE REPUBLIC OF GHANA MINISTRY OF ENERGY/ELECTRICITY COMPANY OF GHANA LTD. GHANA THERMAL PROJECT CREDIT (IDA 2682) ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT C,D OF THE DISTRIBUTION SYSTEM UPGRADE PROJECT (DSUP) RP1 88 Volume 2 LL COMPENSATION AND RESETTLEMENT PLAN -1LE ULPYg Refast Consulting DECEMBER 2003 Tema  LIST OF ACRONYMS AMA - ACCRA METROPOLITAN ASSEMBLY BSP - BULK SUPPLY POINT DSUP - DISTRIBUTION SYSTEM UPGRADE PROJECT EC - ENERGY COMMISSION ECG - ELECTRICITY COMPANY OF GHANA EIA - ENVIRONMENTAL IMPACT ASSESSMENT EMF - ELECTROMAGNETIC FIELD EMP - ENVIRONMENTAL MANAGEMENT PLAN EPA - ENVIRONMENTAL PROTECTION AGENCY ESIA - ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT GHC - GHANA CEDIS GoG - GOVERNMENT OF GHANA GT - GHANA TELECOM kV - KILO VOLT (1,000 VOLTS) KMA - KUMASI METROPOLITAN ASSEMBLY LI - LEGISLATIVE INSTRUMENT LV - LOW VOLTAGE MoE - MINISTRY OF ENERGY MVA - MEGAVOLT AMPERES MW - MEGAWATT NED - NORTHERN ELECTRICITY DEPARTMENT NEP - NATIONAL ELECTRIFICATION PROJECT a  Executive Summarv The Ministry of Energy (MoE) is seeking to improve the electric power distribution system of the Electricity Company of Ghana (ECG) to levels consistent with best industry practice in order to support the Government of Ghana's economic development goals. In line with this objective, MoE proposes to apply some of the funds obtained from the World Bank under the Ghana Thermal Credit facility (IDA 2682) to finance some projects of ECG under the Distribution System Upgrade Project (DSUP). In compliance with the requirements of the Ghana EPA and the World Bank, the borrower (MoE/ECG) is required to undertake environmental and social impact assessments of the proposed developments under the DSUP to address potential adverse impacts, if any, that could arise during the implementation. The World Bank disclosure policy further requires that the environmental (biophysical) and social assessments should be made and disclosed in separate documents. This report therefore covers the Compensation and Resettlement Plan resufting from the assessment of the social impacts of the DSUP. The DSUP components cover both improvements to physical systems (sub-stations, transmission circuits, communications systems etc) as well improvements to financial operations and other forms of institutional support. The impact assessment commenced with an Inception (Scoping) phase during which the scope of the assessment was determined through consultations, desk studies and field evaluations. From the findings of the Inception report, it was decided to focus the assessments on the following components of the DSUP: * Construction of Primary sub-stations * Laying of Underground cables * Construction of Overhead lines * Upgrading of LV systems 1eeFost/DSUPi- /E Sm-r4  The various institutional, regulatory and policy issues related to the project implementation have been duly considered in this phase of the assessment. Among those considered are: * Environmental Assessment Regulations, 1999 (LI 1652), * Energy Commission Act, 1997 (Act 541) and PUBLIC NOTICES * National Museum Decree, 1969, (NLCD 387) * Lands (Statutory Wayleaves) Regulations, 1964 (L.I. 334) * Lands (Statutory Wayleaves) (Amendment) Regulations, 1964 (L.I. 346) 1 Lands (Statutory Wayleaves) Act, 1963 (Act 186) * Factories, Offices and Shops Act, 1970, Act 328 a ECG Safety Policy 1995 * ECG Environmental Management Plan 1999 * The Road Reservation Management - Manual for Coordination * World Bank Safeguard Policy on Involuntary Resettlement (OD 4.30) (Note that the policy revision is OP 4.12, but this project is governed by the earlier version of the policy) Relevant sections of these provisions and guidelines have been used in the appropriate sections of the report. The World Bank Safeguard Policy on Involuntary Resettlement provides the basis for the socio-economic baseline and impact assessment on income loss due to disruptions to persons/economic activities that would result during the project implementation. The Road Reservation Management Coordination Manual prescribes procedures for dealing with disruptions to utilities and traffic management during such works. The project components are described in sufficient detail as is consistent with SIA practice in order to point out the issues of environmental concem. The section on the description of the existing environment presents general information on the three (3) urban centres - Accra, Tema and Kumasi where the major DSUP components under consideration in the ESIA will be implemented. T2eostDSP/Cmpeso onon R-sttl--et Pio gscSumr  Also provided is information on those components of the socio-economic/cultural environment that would be impacted by the project implementation activities. These would serve as a basis of predicting and evaluating any anticipated impacts (magnitude, extent and significance). The major components of the socio-economic environment expected to be affected by the proposed project implementation are the people and the economic activities that fall within the right-of-way (RoW) of the selected circuit routes. During this phase of the assessment, detailed baseline surveys were carried out along the proposed routes. The surveys involved identifying project-affected persons using the criteria prescribed in the World Bank Policy OD 4.30. The affected persons include: i.) Those whose structures are of a temporary nature - movable kiosks, tables etc. ii.) Those whose structures are of a permanent nature - set in concrete iii.) Those who sell on the pavements and sidewalks (hawkers/seasonal sellers) The findings are presented in Tables covering each of the proposed routes. The summary of the affected persons and structures is presented below. Table ES 1 - Summary of Affected Structures and Persons No. Route Permanent Structures I Affected Persons Movable Structures / Affected Persons 1 Accra Route 1 15 structures 44 Persons 27 structures 46 Persons 2 Accra Route 2 9 structures 19 Persons 36 structures * 36 Persons 3 Accra Route 3 Nil Nil 200 Persons (seasonal sellers) 4 Kumasi 4 structures 6 Persons 74 structures *74 Persons TOTALS 28 structures 69 Persons 137 structures 356 Persons *Reld Estimated numbers The impacts on affected persons and structures are estimated from the data gathered during the field surveys based on the worst case scenarios. From the calculations, it was found that at exchange rates of 1 USD = 9,000 Ghana Cedis, the total compensation payable by ECG for loss of income to those to be affected would be about USD 2840 over a period of about 4 months disruption. Refo-t/DSUP/C-mpn-t,., .nJ Se_eti__n plan /Fkcumo_ i  Allowing for possible 100% increase in this figure at the time of implementation (delays beyond 4 months, overstatement of incomes beyond those used in estimates) that would be about USD 6,000. Allowing a further USD 20,000 for "disturbance allowance" including the cost of removing and reinstating some of these permanent structures and allowing a further USD 10,000 for assisting the nearly 350 persons in temporary structures to move to nearby locations, this would give an estimated total cost of mitigating the economic impact of about USD 34,000. The provisional estimate of USD 100,000 made for the DSUP by ECG should therefore be adequate to address these concerns. In practice, every effort shall be made to keep the disruptions to the barest minimum. In most cases, displacements shall be avoided by careful selection of trenching points and pole positions. ECG Environmental Management Plan (1999) and ECG Safety Policy (1995) provide guidelines and systems for managing the environmental and health and safety aspects of the project implementation. Appropriate monitoring criteria shall be established to verify the predicted impacts of the project on the environment and adjust the mitigation measures where necessary. The Project Unit of ECG shall ensure that monitoring programmes are instituted and carried out to cover the under listed areas. Relevant records shall be kept to ensure compliance with sound environmental practices recommended in this report. ECG's Environmental Officer (assisted by a Social Impact Coordinator) shall oversee and report all monitoring activities and reports to the Director of Engineering. The monitoring criteria are outlined in detail in the report under the following headings: Construction Phase * Waste management . Operations and Maintenance Phase i-IeFoet/DSUP/Compensotonon2R*settlesnentPlon/Esec ummorq iv I~ ~ ~[tDUPC,---  a Socio-economic/cultural issues A section outlining a provisional Management Plan to ensure the application of sound environmental practices during the various stages of the project is also incorporated in the report. The provisional plan discusses and allocates appropriate resources for items identified under mitigation and monitoring. In addition to the Environmental Officer, ECG shall appoint a Project Social Impact Coordinator who will also serve on the Project Implementation Unit with support from the Projects Department, to oversee the implementation and monitoring of the social issues such as consultations with affected persons, compensation payments and handling of complaints. The person shall carry on this assignment into the operational phase of the project. Since all the specific structures to be physically damaged/disturbed are not known precisely at this stage, the social impact coordinator shall ensure that a log book is made available to document all details of such instances of damage/disturbance, repairs/reinstatements and compensation paid. This record shall be available for inspection by relevant persons and authorities including the World Bank. Details of consultations held with the various identified stakeholders are presented in a further section on consultations. The report concludes with a recommendation for the implementation of the project subject to monitoring of the various commitments made for mitigating the environmental and social impacts. '1~~~~~U/-  Table of Contents Page LIST OF ACRONYMS a EXECUTIVE SUMMARY i 1.0 Introduction 1 1.1 Objectives of SIA 2 1.2 Approach and Methodology 2 1.3 Institutional, Regulatory and Policy Considerations 3 2.0 Project Description 6 2.1 Construction of Pnrmary sub-stations 6 2.2 Laying of Underground Cables 7 2.3 Construction of Overhead Lines 8 2.4 Upgrading of Low Voltage (LV) Systems 9 3.0 Description of Existing Environment 10 3.1 Urban Profiles 10 3.2 Socio-Economic Environment 12 4.0 Potential Impacts and Mitigation 18 5.0 Monitoring 22 j 5.1 Socio-Economic/Cultural issues 2  GOVERNMENT OF THE REPUBLIC OF GHANA MINISTRY OF ENERGY/ELECTRICITY COMPANY OF GHANA LTD. GHANA THERMAL PROJECT CREDIT (IDA 2682) ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT OF THE DISTRIBUTION SYSTEM UPGRADE PROJECT (DSUP) COMPENSATION AND RESETTLEMENT PLAN Refast Consulting December 2003 Tema  1.0 Introduction The Electricity Company of Ghana Ltd, (ECG) is a public utility service provider registered as a private limited liability enterprise under the Companies Code, 1963 (Act 179). Currently, the Government of Ghana is the sole shareholder of ECG. The company is responsible for the distribution of electric power over the southern sector of Ghana which comprises six (6) out of the ten (10) administrative regions namely Ashanti, Eastern, Volta, Western, Central and Greater-Accra. The regions in the northern sector of Ghana are served by the Northern Electricity Department (NED) of the Volta River Authority (VRA). ECG has further subdivided the six (6) administrative regions into nine (9) operational regions, namely: Accra West Ashanti East Eastern Central Tema Accra East Ashanti West Volta Western In the course of its operations, ECG has not been able to match the demand of electricity with the needed network upgrades and expansions. Insufficient tariffs have placed the company in a poor financial state with inadequate investments such that most of the equipment in operation are obsolete, and the transformers and associated distribution systems are constantly overloaded. This has resulted in high distribution system losses, poor electricity supply quality and reliability leading to considerable customer dissatisfaction. It is the objective of the Ministry of Energy (MoE) to improve the electric power distribution system of the Electricity Company of Ghana to levels consistent with best industry practice in order to support the Govemment of Ghana's economic development goals. In line with this objective, MoE proposes to apply some of the funds obtained from the World Bank under the Ghana Thermal Credit facility (IDA 2682) to finance aspects of ECG's investment programme under the Distribution System Upgrade Project (DSUP). In compliance with the requirements of the Ghana EPA and the World Bank, the borrower (MoE/ECG) is undertaking a Social Impact Assessment of the proposed developments under the DSUP to address issues of compensation and resettlement. IFost/D.vUp/tompencot -J P-tti.-tPl-  REFAST Consulting, a Ghanaian Engineering and Environmental consultancy has been engaged to facilitate the conduct of the impact assessment. 1.1 Objectives of the SIA An initial screening and evaluation (Scoping) was carried out at the inception of the SIA to: