Mozambique - Energy Reform and Access Project : Resettlement policy framework

s~~~~ _ 1x | W aa S ~~~~~~~~LLE H~ _ldH.t I ~ M) q_ +-;I _ E _ _ _ _ _ _ _ _ _ _ _ _ ' _ _ _ _ _ _Z  Mozambique Energy Reform and Access Programme ABBREVIATIONS AND ACRONYMS CRC Compensation and resettlement committee DNE National Directorate of Energy DP Displaced person EDM Electricidade de Mocambique - Mozambique Electricity (Company) EMP Environmental management plan ERAP Energy Reform and Access Programme ESIA Environmental and social impact assessment GoM Government of Mozambique IDA International Development Agency KV kilovolt KW kilowatt MCU Management and co-ordination unit MICOA Ministry of Environmental Affairs MIREME Ministry of Mineral Resources and Energy NGO Non-governmental organisation OP Operational procedures PAP Project affected person(s) PV Photo-voltaic RAP Resettlement action plan RPF Resettlement policy framework WB World Bank V Volt Resettlement Policy Framework  Mozambique Energy Reform and Access Programme DEFINITION OF TERMS Rural centre: district capitals, municipalities, small towns and centres of population concentration in rural areas (as opposed to large urban centres or peri-urban areas). Typically medium to high density residential areas serving predominantly surrounding rural farming areas. Project developer: the investor or proponent of a sub-project, including private sector individuals or entities and State or State affiliated institutions, such as EDM, district administrations and municipalities. Displaced person (DP): refers to any person, who would be identified through baseline surveys undertaken for individual sub-project proposals, to be affected or displaced by any of the following circumstances: - acquisition by a sub-project, in full or in part, temporarily or permanently, of any title or right of use and benefit over land (including, but not limited to, residential, agricultural, grazing and common usage lands), houses and other immovable property; - acquisition by a sub-project of crops (annual and perennial) and trees, whether partially or in total; - where business, means of income or livelihoods are negatively affected by a sub- project, in part or in total; and - individuals, households, groups and public bodies falling within one or more of the above categories. Land acquisition: refers to the process whereby a person or entity is compelled by a public agency to be deprived, in the public interest, of all or part of the rights to use or benefit from land that a person or entity possesses, in return for a consideration in terms of the law. Baseline survey: refers to the census and inventory of losses for each DP which will be recorded in the sub-project proposal or environmental and social screening document submitted by a sub-project developer to DNE or other appropriate authority. Replacement cost: refers to the value determined to be fair compensation for any real property, the actual cost of replacing houses and structures (based on current fair market prices of building materials, labour and transport, without depreciation or deduction for salvaged materials) and the market value of crops, trees and other commodities. Resettlement: refers to all measures taken to mitigate and all adverse impacts of a sub- project on the property and/or livelihoods of DPs, including relocation, compensation and rehabilitation. Relocation: refers to the physical relocation of DPs from their pre-project place of residence. Compensation: refers to the payment, in cash or kind, of the replacement costs of acquired or affected assets. Rehabilitation: refers to compensatory measures provided under these guidelines other than payment of the replacement costs of acquired or affected items. Resettlement Policy Framework ii  Mozambique Energy Reform and Access Programme 1. PROJECT DESCRIPTION ........................ 3 I.I. BACKGROUND TO THE PROJECT . 1 .2. DESCRIPTION OF THE PROJECT. 4 1I3. Grid electrification and power sector reforms component ... .............. .......... ....... 5 1 4. Renewable energy promotion compoent. 5 1.5. PREPARATION OF THE RESETTLEMENT POLICY FRAMEWORK ............ 6 2. POSSIBLE ADVERSE SOCIAL IMPACTS OF PROJECT COMPONENTS ..................... 8 2.1 LOCAL DISTRIBUTION NETWORKS .............................8.......... ...................... .. 8 2.2 ELECTRICAL GENERATION PLANT, EQUIPMENT AND ASSOCIATED INFRASTRUCTURE .. . 9 2.3 MICRO-HYDROPOWER SCHEME INFRASTRUCTURE ..........................................9....... 9 3. PRINCIPLES AND OBJECTIVES GOVERNING COMPENSATION AND RESETTLEMENT PLANNING AND IMPLEMENTATION . . .10 3.1 OBJECTIVES .....................................1...................... .................. . 10 3.2 PRINCIPLES .1..................................0................... . I 0 4. PROCESS FOR THE PREPARATION, REVIEW AND APPROVAL OF INDIVIDUAL DRAFT RESETTLEMENT ACTION PLANS ..... 12 4.2.1 Environmental screening .13 4.2.2 Sub-project compensation and resettlement committee .14 4.2.3 Draft resettlement action plan preparation team ......................14...... ........................ . 4 4 2.4 Baseline survey and preliminary asset inventory ...........................14... ...................... 14 4.2.5 Assigning displaced persons to different categories ..... ............... 15 4.2.6 Determination of eligibility for compensation and resettlement entitlements . 15 4.2.7 Determination of valuation methodology and calculation of cost of compensation and resettlement ..15 4.2.8 Draft RAP report ............................................................. . 16 4.2.9 Review and approval of sub-project draft RAPs 16 5. POSSIBLE CATEGORIES OF DISPLACED PERSONS .18 6. LEGAL FRAMEWORK FOR COMPENSATION AND RESETTLEMENT .19 7. FRAMEWORK FOR DEFINING ELIGIBILITY FOR COMPENSATION AND RESETTLEMENT ..21 7.1 CUT-OFF DATE ....................................................2....................1..... 21 7.2 CATEGORIES OF DISPLACED PERSONS ELIGIBLE FOR ENTITLEMENTS .................................. 21 8. FRAMEWORK FOR VALUATION OF LOSSES AND DETERMINATION OF ENTITLEMENTS .. 24 9. DELIVERY OF ENTITLEMENTS . 26 9.1 INTEGRATION OF A RAP INTO AN OVERALL SUB-PROJECT PLAN ......................................... 26 9.2 DETAILED DETERMINATION OF ENTITLEMENTS ................. 26 9.3 ENTITLEMENT AGREEMENT CONTRACTS .............................................................................. 26 9.4 REPLACEMENT LAND AND RESETTLEMENT ................. 27 9.4.1 Selection and allocation of replacement land ....... . 2 7 9.4.2 Land planning and preparation .. 27 9.4.3 Relocation to replacement land ................. 28 9.5 COMPENSATION ................. 28 9.5.1 Payment of compensation ................. 28 9.5.2 Compensation for unforeseen displacement and damage ........ ......... 28 9.6 CONFIRMATION OF RECEIPT OF ENTITLEMENTS ................................................................... 29 9.7 PROGRESS MONITORING AND REPORTING ................................................ ... 29 Resettlement Policy Framework 1  Mozambique Energy Reform and Access Programme 10. PARTICIPATION OF DISPLACED PERSONS ........................................... 30 10.1 CONSULTATION WITH DISPLACED PERSONS . ........................................ 0 10.2 GRIEVANCES ........................................ 30 11. MONITORING AND EVALUATION ........................................... 31 12. FUNDING ........................................... 32 APPENDIX 1: SUMMARY DESCRIPTION OF RELEVANT PROJECT COMPONENTS AND POTENTIAL ADVERSE SOCIAL IMPACTS APPENDIX 2: SUGGESTED PROCEDURE FOR DRAFT RESETTLEMENT ACTION PLAN PREPARATION, REVIEW AND APPROVAL g APPENDIX 3: SUGGESTED STRUCTURE OF A SUB-PROJECT DRAFT RESETTLEMENT ACTION PLAN APPENDIX 4:EXAMPLE OF POSSIBLE CATEGORIES OF DISPLACED PEOPLE AND ENTITLEMENT MEASURES APPENDIX 5: SUMMARY OF NATIONAL LAWS GOVERNING LAND, RESETTLEMENT AND COMPENSATION APPENDIX 6: SUGGESTED PROCEDURE FOR IMPLEMENTATION AND DELIVERY OF ENTITLEMENTS Resettlement Policy Framework 2  Mozambique Energy Reform and Access Programme 1. PROJECT DESCRIPTION 1.1. Background to the project Only a small fraction of Mozambique's vast potential energy resources are currently being exploited. The three primary challenges facing the Government of Mozambique (GoM) are: - increasing access to modern energy, in particular electricity; - mitigating adverse environmental, livelihood and health impacts of traditional bio-fuels production and use; and - promotion and prudent management of export-oriented energy projects. Access to electricity remains extremely low despite a considerable amount of international and domestic resources being targeted at expanding the main national grid network and the number of independent generation and mini-grid systems. Independent mini-grid systems are usually found in small rural towns or population centres (i.e. rural centres) that are usually long distances from the nearest point of the existing national main grid. They typically consist of diesel or, more recently, gas powered generators supplying electricity to a local reticulation network. They are mostly operated by local district administrations or municipalities although, recently, a few are being operated by private sector business under management contracts. The unsatisfactory accessibility situation is partly due to the high cost of extending networks and increasing the number of connections in relatively low-demand areas using traditional technologies and design standards. The GoM is aiming at electrifying all remaining un-electrified district capitals and increasing the number of new household connections in urban, peri-urban and rural areas. Most rural centres that are currently un-electrified are located in the central and northern provinces of Mozambique. It is envisaged that some will be connected to the main national grid, while others will be electrified via connection to independent mini-grids supplied by local small-scale diesel or gas powered generation plants. Wherever possible private businesses will participate via equity and debt capital, under a legal framework for private concessions from the National Directorate of Energy (DNE) in the Ministry of Mineral Resources and Energy (MIREME). However, the principal energy source for the majority of Mozambicans is biomass, particularly wood fuel. Mozambique receives a considerable amount of sunshine and has very favourable conditions for solar photovoltaic (PV) and thermal energy development. Decentralised electricity technologies based on renewable energy sources hold a considerable promise to meet potential small, diverse demands for high value applications of electricity. However, in Mozambique the awareness of alternative renewable energy sources, such as solar PV energy, is minimal. Equipment prices are high and the solar PV system market (e.g. supply chains) is very weakly developed. Certain places in Mozambique have mountainous terrain with perennial streams and rivers that have potential for developihg micro-hydropower schemes (typically ranging from 5 to 200 kW, for example) to provide mechanical and electric energy to rural populations. So far, there has been negligible exploitation of this micro-hydropower potential. In recent years the GoM has taken significant steps towards adopting a policy and legislative framework to reform the energy sector to meet these challenges. Approval Resettlement Policy Framework 3  Mozambique Energy Reform and Access Programme of the National Energy Strategy in 2000 provided the foundation for further reforms and competitive private sector participation. Participation in the electricity sector in many rural centres is currently unattractive to the private sector. This is largely due to the small number of consumers in these low- demand centres, the high costs per customer of service provision and the low sales revenues. In support of the National Energy Strategy, the GoM, with support from the World Bank (WB), is preparing a seven year, two-phase, Energy Reform and Access Programme (ERAP). The programme's development objectives are to: - accelerate, in a commercially viable manner, the use of electricity for economic growth and improved quality df life in un-served and under- served rural and peri-urban areas; and - strengthen Mozambican capacity to expand the energy sector for both domestic and export markets. Phase 1 of ERAP (the Project) will last for three years and will lay the foundation for accelerating electricity access via commercially oriented rural electrification (i.e. by improving efficiencies and cost recovery and employing lower-cost options and "smart" subsidies) and for small-scale renewable energy development. The feasibility of the development of a domestic natural gas market will also be investigated. Phase 1 will focus on capacity building, to create an enabling environment for private business participation, and on preparation for further scaling-up during Phase 2. 1.2. Description of the project The Project will consist of investments in infrastructure and equipment and of technical assistance and has been broken down into four main components, which are: - grid electrification and power sector reforms; - renewable energy promotion; - institutional strengthening and capacity building; and - a gas distribution plan. The institutional strengthening and capacity building component is likely to provide institutional strengthening of MIREME and offer business development and support services to the private sector. The gas distribution component will provide technical assistance to support the promotion of private sector initiatives in the development of a domestic natural gas market. Implementation of large physical infrastructure investments is not envisaged under these components. The various project components are described in the environmental and social impact assessment for ERAP and a brief description of the grid electrification and renewable energy promotion components is presented in Appendix 1 to this resettlement policy framework. Resettlement Policy Framework 4  Mozambique Energy Reform and Access Programme 1.3. Grid electrification and power sector reforms component The grid electrification and power sector reforms component is sub-divided into two principal sub-components: main grid investments; and independent grid investments. For the main grid investments sub-component electricity from the main national grid system, currently operated by Electricidade de Mo,ambique (EDM), will supply local distribution networks in rural centres that will generally be operated by private businesses or public bodies other than EDM. In some cases completely new distribution systems will be constructed while in others existing independent mini- grids (that are not currently connected to the main national grid) will be rehabilitated and expanded. In the latter case the current use of diesel or gas powered generators will be discontinued. Infrastructure will mainly include overhead distribution lines, sub-stations and transformers. For the independent mini-grid investments sub-component selected rural centres will be supplied with power from local diesel or gas powered generators. Electricity will be supplied to consumers via independent distribution grid systems that are not connected to the main national grid. These independent systems will primarily be operated by private businesses although they may be operated by local authorities in places where it is not currently attractive for private sector businesses to do so. In situations where there is currently no electricity supply completely new generation plant will be installed and new distribution systems constructed. In rural centres where generation plant and distribution networks already exist the focus will be on privatisation and on rehabilitation and expansion of existing plant and networks. Infrastructure will mainly include overhead distribution lines, sub-stations, transformers and diesel or gas powered generation plant and associated infrastructure. 1.4. Renewable energy promotion component The renewable energy promotion component is sub-divided into two principal sub- components: institutional and household solar photovoltaic (PV) systems; and technical assistance for micro-hydropower systems. The institutional and household solar photovoltaic systems sub-component will support the acquisition and installation of larger institution-sized solar PV systems by institutions, organisations and businesses in rural areas of the country and the acquisition of smaller household-sized solar PV systems and solar PV "lanterns" by rural households throughout the country. The sub-component will be implemented entirely by the private sector, which will receive project support to facilitate access to solar PV technology by rural institutions, businesses and households. There is minimal infrastructural development involved, this mainly consisting of banks of solar PV panels or individual panels mounted on roofs of buildings or on poles. The technical assistance for micro-hydropower systems sub-component will primarily focus on micro-hydropower programme design and capacity building during Phase 1 of ERAP in preparation for implementation during Phase 2. The small systems may be used to produce mechanical energy (e.g. for grinding cereals) or electrical energy. They are expected to be established entirely by the private sector in rural areas to service individual households, rural institutions and, possibly, small rural centres. Infrastructure will mainly consist of intake structures, water conveyance systems, mills or generation machinery, associated infrastructure and, in some cases, electricity distribution networks. Resettlement Policy Framework 5  Mozambique Energy Reform and Access Programme 1.5. Preparation of the resettlement policy framework The environmental and social impact assessment (ESIA) undertaken for ERAP suggests that the magnitude of adverse environmental and social impacts is expected to be minimal. Minor impacts may, however, be encountered with the grid electrification and renewable energy promotion components where there may need to take small amounts of land or productive resources, either temporarily or permanently, for sub-project activities and infrastructure. Taking of land and productive resources may, in turn, displace people and other entities in one way or another. For WB supported projects the Bank requires that any project that causes displacement must be subject to the requirements of its Operational Policy on Involuntary Resettlement (OP 4.12). The policy covers direct economic and social impacts that are caused by the involuntary taking of land resulting in: - relocation or loss of shelter; - the loss of assets or access to assets important to production; - the loss of income sources or means of livelihood; or - the loss of access to locations that provide higher incomes or lower expenditures to businesses or persons. Displacement may, therefore, be physical, economic, social or cultural. The WB describes these processes and outcomes as "involuntary resettlement", or simply "resettlement", even when people are not forced to move. Resettlement is involuntary if affected people do not have the option to retain the status quo that they have before the project begins. WB OP 4.12 is applied whether or not the affected persons must move to another location. ERAP is a sector-wide programme/project. It involves multiple sub-projects each of which may require land and asset takings. Specific investment decisions will be made during the life of the project. Individual sub-projects will not be known at the beginning because they will be selected at a later date. In such cases the WB OP 4.12 requires two types of resettlement planning. The first is a resettlement policy framework (RPF) which guides and governs the project as sub-projects are selected for inclusion. An RPF is prepared in situations where specific investment sites and details (i.e. individual sub-projects) are not known. It is a statement of the policy, principles, institutional arrangements and procedures that will be followed in each sub-project involving compensation and/or resettlement. It sets out the elements common to all the sub-projects. It allows for the principles and processes to be agreed so that these do not have to be discussed for every sub-project. It also allows project implementers, who may be in many locations, agencies or communities, to undertake specific sub-projects without having to renegotiate fundamental agreements. The RPF must be prepared, accepted and disclosed publicly before the WB will appraise the project. The second element includes individual resettlement action plans (RAPs) that are undertaken for each sub-project where displacement will occur, once more specific details of the location and nature of the sub-project is known. Individual RAPs must be prepared and reviewed before they are accepted for inclusion in the overall project or programme. The RPF provides the basis for developing RAPs, if needed, for each sub-project and the RPF and the RAPs are fully complementary to one another. Resettlement Policy Framework 6  Mozambique Energy Reform and Access Programme As part of the preparation of ERAP this RPF has been prepared to meet the requirements of the GoM in order to address the needs of an as yet unknown number of people who may be affected by the implementation of individual sub-projects. Although an integral part of the environmental management plan (EMP) recommendations of the ESIA being undertaken for ERAP, the RPF is presented as a separate document. This RPF has been prepared to guide the preparation and implementation of sub- projects with components requiring land or causing displacement. It lays down the principles and objectives, eligibility criteria for entitlements, legal and institutional frameworks, modes of compensation, stakeholder participation features and grievance procedures that will guide the implementation of compensation and resettlement for persons affected by land or resource acquisition and subsequent displacement. The RPF has been prepared for relevant components of the ERAP to the standards and following the procedures of the GoM environmental policy relevant to involuntary resettlement and of the WB, i.e. OP 4.12. The preparation of the RPF has also been guided by the "Sample Terms of Reference for a Resettlement Policy Framework" attached to the Terms of Reference for the ESIA and by several examples of RPFs prepared for WB supported projects in other regions. As part of the overall ESIA the RPF will be disclosed to relevant institutions and stakeholder groups for their endorsement and quick arrangement for implementing the framework. It will be sent to the Ministry for Environmental Co-ordination (MICOA), other line ministries, other donor groups working in the area as well as other relevant and previously identified stakeholders, for review and comment. As part of the ESIA, the RPF is required to be approved by the Bank's ASPEN environmental and social reviewers and disclosed in both the WB Info-shop and within Mozambique. Subsequently, each RAP will have to be first approved by ASPEN and then disclosed in both the WB Info-shop and within Mozambique. Resettlement Policy Framework 7  Mozambique Energy Reform and Access Programme 2. POSSIBLE ADVERSE SOCIAL IMPACTS OF PROJECT COMPONENTS It is likely that only very small amounts of land will be required for sub-project infrastructure and activities so that any potential impacts regarding the land, assets and economic activities of people living or using land in or around sub-project sites are expected to be limited. Institutional and household solar PV systems sub-projects are not expected to require the acquisition of any amount of land or to cause any significant displacement. Sub-project activities that may require land to be acquired, either permanently or temporarily, and which may adversely affect assets or livelihoods of displaced persons (DPs) are described in Appendix 1. 2.1 Local distribution networks Most grid electrification component sub-projects, and possibly some future micro- hydropower sub-projects, will require the establishment of new electricity distribution networks or the rehabilitation and/or expansion of existing networks. These will mainly consist of medium (11 kV) and low voltage overhead lines supported on wood or concrete poles. It is usual practice in Mozambique to align these along the sides of roads and public thoroughfares or along the boundaries between individual land holdings in order to cause as little disturbance as possible to private property and to allow for easy access for maintenance. In some instances, particularly in less densely populated peri-urban areas, it is necessary to route the distribution lines through fields and other open areas. The permanent placement of supporting poles is unlikely to take up any land of significance and the lines should always be sited so as to cause as little disturbance to human activities and private property and assets as possible. It is expected that only insignificant areas of land may need to be compulsorily acquired for poles. Overhead medium and low voltage lines themselves do not occupy land and it highly unlikely that land will need to be "acquired" for this purpose. During construction existing trees and vegetation will need to be cut down, which will represent a loss of assets to some DPs. The lines may also require the future permanent restriction from erecting structures or growing tall vegetation (e.g. fruit tress) underneath or very close to them. During the construction of overhead distribution lines some losses may be experienced due to the need to acquire land for activities such as gaining access to sites, storage of construction materials and storage of spoil. Losses might include small areas of land, crops, fruit trees, ornamental plants, paved areas and fences. Losses are generally expected to be mostly temporary and are most likely to be due to damage caused by construction machinery and personnel. Resettlement Policy Framework 8  Mozambique Energy Reform and Access Programme 2.2 Electrical generation plant, equipment and associated infrastructure Sub-stations may need to be constructed as part of the local distribution networks. It is not expected that they will occupy large areas of land and should, where possible, be sited on unused public or "waste" land. Where new diesel or gas powered generation plant is to be installed (or existing plant rehabilitated and expanded) land will be required for the plant and associated infrastructure. Wherever possible existing unused public or "waste" land should be used in order to minimise displacement but where this is unavoidable it may be necessary to specifically acquire "privately" held land for this purpose. As with local distribution networks (e.g. overhead' lines) some displacement may occur during construction. Most of this will be associated with gaining access to sites and storage of construction materials and is most likely to be temporary in nature. 2.3 Micro-hydropower scheme infrastructure The amount of land that may need to be acquired for micro-hydropower scheme infrastructure will depend on the size and nature of the scheme and the circumstances specific to each site. Intake structures, mills or generation plant and buildings, water conveyance structures (e.g. pipelines and canals) and access roads are unlikely to occupy a significant area of land. However, there may be cases where land has to be acquired compulsorily and where people are displaced in one way or another. Canals, if required, are more likely to require the acquisition of land and the permanent displacement of people from the land in question, particularly with respect to crop production and livestock grazing. Most disturbance is likely to occur during construction when vegetation is cleared or damaged, construction material and spoil is stored on land or fences are removed. This displacement is, however, likely to me more temporary in nature than permanent. The development of a micro-hydropower scheme may also result in the reduction in stream flow along stretches where the stream is diverted. For people who currently rely on such stretches for water supplies this would represent a reduction in access to resources. Resettlement Policy Framework 9  Mozambique Energy Reform and Access Programme 3. PRINCIPLES AND OBJECTIVES GOVERNING COMPENSATION AND RESETTLEMENT PLANNING AND IMPLEMENTATION 3.1 Objectives The overall objective of the compensation and resettlement component of ERAP and individual sub-projects is to displace (i.e. move people or deprive them from resources or access to resources or deprive them from income earning capacity or opportunities) as few people, businesses and public bodies as possible. Where displacement is unavoidable the objective is to ensure that sufficient investment resources are appropriately allocated by sub-project developers to ensure that DPs are provided with adequate and appropriate compensation, resettlement and entitlement measures to enable them to at least maintain, or improve, their pre- project living standards, income earning capacities and production levels. 3.2 Principles The following basic principles will govern preparation and implementation of all sub- projects: - alternative sub-project designs, which avoid or minimise displacement, will be explored in all cases; - all possible means shall be used to ensure that no people are harmed in any way by sub-project preparation and implementation activities and sub-project outcomes; - compensation and resettlement planning and implementation activities shall be undertaken in participation with DPs and other relevant project affected people who will be continuously consulted throughout the process; - DPs shall be informed about their options and rights pertaining to displacement, compensation and resettlement and about grievance mechanisms available to them; - only DPs who meet agreed eligibility criteria will be entitled to compensation and resettlement measures; - lack of legal rights to land and assets occupied or used shall not preclude a DP from entitlement to compensation and resettlement measures; - compensation, resettlement and rehabilitation measures will be as fair as possible to all parties concerned; where compensation, in cash or kind, is provided for loss of assets (including housing), access to assets or damage caused to assets it shall be provided on the basis of full replacement cost and shall include necessary additional costs incurred to achieve full restoration; where replacement land is to be provided it will have a combination of productive potential, location advantages, accessibility, availability of services and other factors at least equivalent to the advantages of the original site and shall be as near as possible to the original site; Resettlement Policy Framework 10  Mozambique Energy Reform and Access Programme - DPs that are physically relocated shall be provided with relocation assistance (such as moving and translocation allowances) during relocation. Where necessary or appropriate development assistance, such as land preparation and training, will be made available to beneficiaries in addition to compensation and resettlement measures; and - construction work shall not commence until DPs have been satisfactorily compensated and/or relocated. Resettlement Policy Framework 11  Mozambique Energy Reform and Access Programme 4. PROCESS FOR THE PREPARATION, REVIEW AND APPROVAL OF INDIVIDUAL DRAFT RESETTLEMENT ACTION PLANS 4.1 Preliminary tasks Before planning and implementation of the first sub-project commences DNE should ensure that a number of preliminary tasks are completed in preparation for the resettlement action planning process. The first task will be to establish a small management and co-ordination unit (MCU) within DNE, utilising existing staff resources as much as possible, to oversee the preparation and implementation of individual sub-project RAPs. It is recommended that a local or regional technical expert with experience in resettlement and compensation issues be engaged to assist this unit, particularly during the early stages of the project and until sufficient capacity has been established within DNE. Such technical assistance may only be required on an ad hoc basis, depending on the number and spacing, in time, of individual sub-project RAPs. The second task will be for the MCU to design and produce standard forms and formats to be used during the RAP preparation process. These will include, for example: - environmental screening forms to be used to determine whether or not an ESIA needs to be prepared for each individual sub-project. Environmental screening is required in terms of Mozambican environmental legislation. MICOA has published a standard environmental screening form which may require modification to address the specific circumstances of ERAP sub-projects; - survey forms to be used, where necessary, for collecting baseline information on DPs (or entities) and other project affected people within the footprint of the sub- project. These forms will be used to record the manner of likely displacement, whether physical, economic or social, and the extent of the displacement; - a framework letter to be provided to DPs summarising the RAP process and indicating the rights of DPs and the grievance procedures available; - asset inventory forms to be used for each DP (or entity) to quantify and qualify the assets which will be temporarily or permanently affected by sub-project activities; - a standard preliminary register of DPs (or entities), the displacement to be suffered, affected assets and the corrective (resettlement and compensation) measures subsequently taken during implementation; - entitlement agreement contracts to be signed by DPs or entities and the sub- project developer. These will record the final agreed compensation and resettlement entitlements; - ad hoc compensation claim forms to be used by persons or entities who suffer displacement or damage to property and assets during sub-project implementation, where such displacement or damage was not foreseen during RAP preparation; and Resettlement Policy Framework 12  Mozambique Energy Reform and Access Programme - entitlement receipt forms to be signed by beneficiaries on receipt of compensation and/or resettlement entitlements. 4.2 Preparation of individual sub-project draft resettlement action plans Once a sub-project and developer have been identified and the basic infrastructure plan for a sub-project has been produced the RAP process will commence. A summary of the RAP preparation process is presented in Appendix 2. The RAP process will culminate in the production of a draft RAP which will be an agreed action plan and commitment of all stakeholders for resolving the displacement, compensation and resettlement issues of the sub-project. Among others, it will indicate the criteria to be used, after overall sub-project approval and during implementation, for determining whether a"person or entity is eligible for compensation or resettlement entitlements, what entitlements will be due to different categories of DPs and for different types of losses, how the affected assets of individual DPs will be valued and how compensation and resettlement entitlements will be delivered. It will thus form the basis for determining the specific entitlements due to individual DPs during implementation. 4.2.1 Environmental screening Mozambican environmental legislation requires that certain categories of proposed projects should be subjected to environmental and social screening to determine whether an environmental and social assessment of some type needs to be undertaken. The screening process identifies potential environmental and social impacts of sub-project activities, including impacts on land, assets and socio- economic activities. This requirement will be applied to all ERAP sub-projects. Environmental screening is normally the responsibility of the developer but in order to ensure transparency and uniformity it is proposed that DNE should be responsible for initiating the environmental screening process for sub-projects which should be undertaken by a team of environmental and social practitioners from the public and/or private sectors in Mozambique. The environmental screening process entails the completion of the standard environmental screening form which has to be-submitted by DNE to MICOA which then decides whether or not further environmental and social impact studies are required. In cases where it is determined that no further environmental and social assessment is necessary the preparation of a RAP would normally not be required. The final decision will be made by the WB. Where the environmental screening process determines that an environmental assessment is necessary the initial screening process will have determined whether or not there are significant adverse social impacts that require attention. Where it is clear that there will be no significant adverse impacts, including deprivation of land and assets, and where any small losses can be dealt with effectively in accordance with a simple EMP a separate RAP may be considered to be unnecessary. The final decision will be made by the WB. In situations where it is determined that the preparation of a RAP is necessary the size and complexity of the sub-project will determine whether, in accordance with the requirements of WB OP 4.12, a full RAP or an abbreviated RAP should be prepared. Resettlement Policy Framework 13  Mozambique Energy Reform and Access Programme 4.2.2 Sub-project compensation and resettlement committee For each sub-project DNE will establish a compensation and resettlement committee (CRC) which will, in most cases, be established at the provincial level. The composition of a CRC will vary depending on the specific circumstances of each sub- project but could include representatives from the following: - Provincial Government (e.g. Provincial Governor, Provincial Directorate of Agriculture and Rural Development and Provincial Directorate of Public Works and Housing); - DPs; - sub-project developer (e.g. private sector developer, EDM or local authority, as the case may be);