Cambodia - Provincial and Peri-Urban Water Supply and Sanitation Project : resettlement policy framework

RP137 March, 2002 CAMBODIA Provincial and Peri-Urban Water Supply and Sanitation Project OPERATIONAL MANUAL PART A POLICY FRAMEWORK ON INVOLUNTARY RESETTLEMENT AND COMPENSATION FOR LAND AND OTHER ASSETS (Draft) March 2002 RILE COPY 1. Introduction The objectives of the Cambodia Provincial and Peri-Urban Water Supply and Sanitation project is to provide sustainable water supply and sanitation services to consumers in small towns and peri-urban areas. Most of the consumers in small towns and settlements fall into the lower- income bracket of population. Therefore, the Project will seek to develop and implement financing mechanism through which low-income communities can participate as full-fledged paying customers of piped water supply systems. Towards this end, the Project will leverage private sector participation in water supply provision, so that coverage of population with safe and sustainable water supply is increased more rapidly. Additionally, the Project will also finance water supply systems that are procured through Output-Based Aid on a pilot basis whereby direct payments to low-income families from Credit would be made to cover for the initial connection fee (which are generally unaffordable to low- income families). The Project will involve construction, expansion or rehabilitation of reservoirs, wells, intake structures, distribution networks, and treatment systems. Also, watershed protection will be undertaken when a spring, river or other surface water sources are selected. Due to the small scale of operation the need for acquisition of land and other private assets is likely to be very limited. The proposed Policy Framework governs the basic principles of compensation and rehabilitation assistance for all types of adverse impacts, partial or severe, the acquisition of land and other assets, displacement of persons, demolition of structures, and loss of employment and sources of incomes due to the implementation of sub-projects under the Project. 2. Involuntary Resettlement Operations Manual The Operations Manual for the provincial and Peri-Urban Water Supply and Sanitation Project on Involuntary Resettlement and Compensation for Land and Other Assets has been prepared to guide project implementers how to compensate those who are adversely affected by project. The Operations Manual is divided into 2 main parts: (i) Policy Framework; and (ii) Procedural Guidelines. The Policy Framework is supported by detailed implementation guidelines, provided as attachments to this framework. The Policy Framework includes: (i) a brief review of existing policy and practices governing acquisition of private assets and compensation in Cambodia; (ii) the objectives and principles for involuntary resettlement; (iii) grievance redress mechanism; and (iv) provisions for supervision and monitoring. 3. Policy Framework The present document includes the first part of the Operations manual, the Resettlement and compensation Policy Framework. This policy framework provides principles and instructions to compensate persons, families, organizations negatively affected by the project to ensure that regardless of tenure status, they will be assisted to improve, or at least restore their living standards, income, earnings and/or production capacity to pre-project levels. 2 There is no comprehensive policy in Cambodia to govern involuntary resettlement. Acquisition of land and other assts is carried out within the provisions of the New land Law that came into effect in August 2001. The provisions of the Land Law do not meet the objectives of the World Bank's Policy on Involuntary Resettlement. This Policy Framework is based on the World Bank's Policy OP 4.12 on Involuntary Resettlement and existing practices on acquisition of land and other assets in Cambodia. In case of a difference in policies between the World Bank and Cambodia, the provisions of WB OP 4.12 shall prevail. 4. Definition of Terms Project Affected Persons (PAPs) includes any person or persons, households, a firm, or private or public institution who, in the context of acquisition of assets and change in land usage, as of the cut-off date, on account of the execution of the project, or any of its subcomponents or part, would have their: (a) Standard of living adversely affected; (b) Right, title, or interest in any house, land (including residential, commercial, agricultural and grazing land) or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; or (c) Business, occupation, places of work or residence or habitat adversely affected, with or without displacement. PAP means persons or affected household and consists of all members of a household residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components. For resettlement purposes, affected persons will be considered as members of affected households. Compensation means payment in cash or in kind for an asset to be acquired or affected by a project at replacement cost. Cut-off Date is the date prior to which the occupation or use of the project area makes residents/users of the project area eligible to be categorized as affected persons. In many projects, the cut-off date coincides with the commencement of the census of affected persons within the project area boundaries. Persons not covered in the census are not eligible for compensation and other entitlements. Eligible landholders are affected persons who (a) hold title to land; or (b) do not hold title but whose possession of land can be legalized with a title pursuant to the Land Law of Cambodia. Entitlement include the range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base. Expropriation is Government's action in taking or modifying property right in the exercise of sovereignty 3 External Monitoring Agency is entity designated by Implementing Agency to monitor the implementation of RAP. Host community is the community residing in or near the area to which PAPs are to be located Implementing Agency is any agency, government, NGO, or private body, that is implementing the sub-project under the Provincial and Peri-Urban Water Supply and Sanitation Project. Income restoration is reestablishing income sources and livelihoods of people affected to pre- project levels. Independent shops are commercial stalls, such as grocery shops, tailoring shops, beauty parlors, market stalls, guesthouses, hotels, video houses, and similar establishments that serve as the owners' principal source of income. Land Acquisition means the process whereby a person is compelled by a public agency to alienate all or part of the land a person owns or possesses, to the ownership and possession of that agency, for a public purpose in return for consideration. Rehabilitation means assistance provided to project affected persons seriously affected due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve full restoration of living standards and quality of life. Replacement cost means the amount needed to replace an affected asset determined to be fair compensation for: (a) Agricultural land and fishpond based on productive value; (b) Residential land based on market value (for properties with similar location attributes); (c) Houses and other related structures based on current market prices of building materials and labor, without depreciation and deductions for salvaged building materials, plus transaction costs (such as administrative charges, registration and titling costs), etc.; (d) Crops, trees and other commodities based on current market value. Resettlement means all measures taken to mitigate any and all adverse impacts of a project on AP property and/or livelihoods, including compensation, relocation (where relevant) and rehabilitation as needed. Resettlement Action Plan (RAP) A time-bound action plan with budget setting out resettlement strategy, objectives, entitlements, actions, responsibilities, monitoring and evaluation. Vulnerable group These are distinct groups of people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and specifically include: (i) female headed households with dependents, (ii) disabled household heads, (iii) households 4 falling under the generally accepted indicator for poverty, (iv) elderly households with no means of support and landlessness, and (v) indigenous people or ethnic minorities. 5. Principles and Objectives on Involuntary Resettlement The objectives of the Policy include the following: 1. Land acquisition, other impacts, and resettlement will be minimized as much as possible. 2. The Resettlement/Compensation program should improve or at least maintain the PAP's pre- project living standards and should warrant their participation in project benefits. 3. Project stakeholders (which includes PAPs) are consulted and given the opportunity to participate, as practicable, in the design, implementation, and operation of the project. The overriding principle for all the sub-projects is that people unavoidably affected should be compensated and assisted, so that their economic and social future would be as favorable as it would have been in the absence of the project. This will be accomplished using the following specific principles. (1) The Implementing Agency or project sponsors, as the case may be, shall compensate the PAP for land, structures, and other fixed assets at replacement cost as provided for by this Policy. (2) The resettlement transition period will be minimized and the acquisition of assets, compensation, resettlement and rehabilitation for a segment/section or phase (except where long-tern rehabilitation measures such as vocational training are recommended) will be completed at least one (1) month prior to the initiation of construction work under the respective segment/section or phase thereof. (3) PAPs losing all of their assets (farmland, house or business), or in case of partial loss when the remaining assets are determined by competent authorities as not viable for continued use, will be entitled for compensation for the entire assets at replacement cost.' In the case of a partial impact on the assets, i.e., partial loss of land or structures and the remaining assets remain viable for continued use, compensation for the affected assets will be paid in cash. (4) Other types of landholders who are on a right of way or public land as of the cut-off date will be compensated for affected structures, other fixed assets and other losses but not for land. 1 Where significantly large or entire landholdings are affected by the project or in cases where only partial land is affected but the remaining land becomes economically non-viable, the general mechanism for compensation of lost agricultural land will be through provision of "land for suitable land" arrangements of equivalent productivity and at a location acceptable to the AP. Where the APs are losing residential land with structures that exist in a closely located group exceeding 20 households, the project authorities, in consultation with affected households, may offer a relocation option to fully developed resettlement sites, or alternative facilities to housing projects. If suitable residential / agricultural replacement land is not available, and at the informed request of the APs, cash compensation at replacement cost will be provided. 5 However, such affected persons shall receive special assistance such that they are not made worse off by the project taking the land on which they were located. (5) In case of land for land for arable land, the replacement land should be in the form of land of equivalent productive value and/or characteristics at a location acceptable to PAPs. If replacement land at a location acceptable to PAPs is not available, cash representing replacement cost of land should be compensated. (6) In case of land for land for residential and commercial sites, the Implementing Agency shall provide PAPs the appropriate plot of land with basic services such as electricity, water, drainage, emergency sanitation service, road system, and sewer system at least at the pre- project level. (7) For resettlement site land, the plot owner of the proposed relocation site will also be entitled to compensation for his/her land, and depending on his/her choice, the compensation may be in cash or in the form of a replacement land within or outside the relocation site. (8) The Implementing Agency will provide resettlement assistance to eligible PAPs and the following minimum allowances. There may be additional allowances as needed or identified when preparing a Resettlement Action Plan. (a) Disruption allowance shall be given to PAPs whose business income is temporarily lost due to the project. The independent shops on a right of way that temporarily lose business during construction are eligible for this allowance. The allowance should be provided in cash based on the projected business income lost. (b) Vulnerable group assistance shall be provided for vulnerable families, such as female- headed household, poor families, and disabled headed households in an amount that shall assist them to become economically viable. In addition to any specific allowances to which members of vulnerable groups may be entitled, they shall also receive rehabilitation assistance based on their priorities and needs. (c) Rental allowance shall be given to house tenants of affected main structures who will be forced to find a new place to live, at an amount equivalent to three month's rent. It shall also be given to affected persons forced to lease premises until replacement land and housing is available to them up to a maximum period of three months. (d) Transportation allowance (in cash or in kind according to mutual agreement of the PAP and the Implementing Agency) to PAPs who are relocating, including shanty dwellers in urban areas who opt to move elsewhere or to a government-provided relocation site. When the allowance is in cash, it shall be an amount equivalent to actual transportation costs. (e) Repair allowance is given to PAPs affected by a partial loss of structures and those affected during moving locations based on cost of repairs. (9) Resettlement programs will include adequate institutional arrangements to ensure effective and timely design, planning, consultation and implementation of compensation and 6 resettlement. The Implementing Agency will ensure effective coordination with relevant agencies for the implementation of the resettlement plan (RAP). (10) All costs related to compensation, resettlement and rehabilitation should be included towards the cost of the project. Resettlement costs shall be funded by the participating LGU. 6. Eligibility All Project Affected Persons (PAP) residing in, working, doing business, or cultivating land, or having rights over resources within the project area as of the date of the baseline surveys are entitled to be compensated for their lost assets, incomes and businesses at replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards and incomes. Lack of legal rights to the assets lost will not bar the affected persons from entitlement to such compensation and rehabilitation measures. 7. Replacement cost valuation In order to ensure that compensation is provided at replacement cost the project resettlement policy provides for mechanisms involving: i) an appraisal of the affected land; and ii) negotiations with the landowners. These different steps are described below. i) Appraisal. Replacement cost for land eventually acquired by the project will be determined on the basis of an appraisal of its fair market value (to be established during RAP preparation.) In cases of sub-projects requiring a full RAP the appraisal will be carried out by an independent entity, such as a local NGO, following internationally recognized standards. In cases of projects requiring only a partial RAP, appraisal will be carried out by project proponent. ii) Negotiations with the PAPs. Since in small towns local land-markets may be not be sufficiently developed to ensure an adequate valuation of land market values, the final definition of compensation rates will be negotiated with the PAPs. In order to ensure the PAP's satisfaction, when no agreement between these latter and the implementing agencies is reached, the project will seek alternative land sources. The negotiations with the PAPs will be carried out by project proponent in a fair and transparent manner. 8. Entitlements PAPs will be entitled to the following compensation and rehabilitation measures (See Table 1 for Compensation Matrix): 9. Public Consultation and Participation The project proponent and the local government will ensure that all affected persons including owners of assets and occupants of land located in a proposed sub-project area are properly consulted. PAPs will be informed of the provisions of this Policy Framework through an effective public information campaign and public meetings. 7 A community meeting should be conducted to present the design of the sub-project, wherein the location, size and other requirements of the water supply and sanitation structures that will be constructed, expanded and/or demolished, and the water sources that need to be protected will be known. Based on this, the Guidelines should be discussed at the meeting and copies should be made available so that the PAP will know of their rights and options accordingly. The minutes of the meetings should be properly documented. In the event that a sub-project involves acquisition of land and other assets and results in other adverse impacts, the project proponents shall not proceed with the sub-project unless a compensation package in accordance with these Guidelines, satisfactory to all concerned is agreed upon between the applicant/sponsoring agency and the owners of land/asset affected as well as those who stand to lose their jobs and sources of incomes. The project proponent or sponsoring agency shall allow civil work to start one month after the compensation has been paid and resettlement, where necessary, is completed in accordance with the Guidelines and to the satisfaction of the PAPs. The compensation package and the payments made should be properly documented. 10. Complaints and Grievances Grievances related to any aspect of a project will be handled through negotiations and are aimed at achieving consensus. All complaints received in writing (or written when received verbally) from the PAPs will be documented by Grievance Committee, established by the Implementing Agency at varying governance levels, i.e., commune, district and/or provincial levels. PAPs will be exempted from all administrative and legal fees incurred in pursuant to the grievance redress procedures. If PAPs do not receive any response from an established grievance redress body (at whatever level) within 20 (twenty) days from the filing of the complaint, or if the decision of grievance redress body is not satisfactory, the AP will have the right to submit the complaint to the next higher level of the grievance redress mechanism. If the matter still remains unresolved after all levels of grievance redress have been utilized, the complainant may then forward his/her case to a court of law. In addition to the above mechanisms, and at the option of the PAPs, grievances may be taken to other mediating bodies, such as a council of village elders, monks at a local pagoda, or any other dispute resolution mechanism as may be decided by the PAPs. 11. Supervision and Monitoring Implementation of the RAPs and payment of compensation and other entitlements to PAPs will be regularly supervised and monitored by the project proponent and the findings will be recorded in the monthly reports to be furnished to the Ministry of Industries, Mineral and Energy and to Phnom Penh Water Supply Authority, as the case may be. In a project with significant social impacts causing displacement of large number of PAPs, the MIME or PPWSA will conduct periodic monitoring of the implementation of RAPs. 8 Table 1 Entitlement Matrix Type of Entitled Person Loss Application Compensation Arable land Loss of arable land. Eligible landholder -Land for land or cash compensation for lost land at replacement cost according to AP choice. "Land for land" will be provided in terms of a new parcel of land of equivalent productivity and free of taxes, registration and transfer cost; at a location acceptable to AP; and with long-term security of tenure. -Eligible for economic rehabilitation assistance and other allowances, as applicable. Non-titled but possessory -No compensation but additional assistance given landholder/ so that they are not worse off due to the project Agricultural laborer and to enable them to replace affected assets. Cash compensation for agricultural laborer equivalent to three months salary and assistance in getting alternative employment. Lease holder -Cash compensation equivalent to replacement cost of gross harvest for one year. Temporary Eligible landholder -Cash compensation based on opportunity lost acquisition or during the period. easement 2 Residential Loss of residential Eligible landholder -Compensation in cash at replacement cost or, at land land AP choice, replacement land of minimum plot of acceptable size or a plot of equivalent size, whichever is larger, in a nearby resettlement area with adequate physical and social infrastructure. -Replacement land to be free from taxes, registration and transfer costs. -Eligible for relocation assistance and other allowances as applicable. Non-titled but possessory -No compensation but additional assistance landholder provided so that they are not worse off due to the project and enable them to replace affected assets. Lessee -Eligible for relocation assistance and other allowances, as applicable. Temporary Eligible landholder -Cash compensation for the net loss of income acquisition and damaged assets. Non-titled but possessory -Assistance provided so that they are not worse landholder off due to the project. Lessee -Cash compensation and other allowances, as applicable. 9 3 Commerci- Plots used for Eligible landholder -Compensation in cash at replacement cost for al land business affected the affected portion or, at AP option, replacement land of sufficient size for business continuation in market area of resettlement area or at location comparable to previous site. When the affected premises are larger than the relocation plot, cash compensation at replacement cost to cover the difference in area. -Eligible for relocation assistance and other allowances, as applicable. -Eligible for economic rehabilitation assistance. Non-titled but possessory -No compensation but additional assistance landholder provided so that they are not worse off due to the project and the assistance enables them to replace affected assets. This includes replacement land of sufficient size for business continuation in market area of resettlement area or at location comparable to previous site. -Eligible for relocation assistance and other allowances, as applicable. -Eligible for economic rehabilitation assistance. Lessee -Assistance for finding new commercial place. -Eligible for relocation assistance and other allowances, as applicable. -Eligible for economic rehabilitation assistance 4 Structures Structures affected Owner -Compensation in cash for affected portion of the structure and other fixed assets at replacement cost, without depreciation and without deductions for salvaged material. -Assistance in restoration of any remaining structure, if applicable. -Eligible for relocation assistance and other allowance. Tenant -Three months rent allowance and other allowances as applicable. 5 Loss of Loss of business! Affected PAPs -Cash compensation for the loss of business, business incomes / incomes and wages. incomes or employment -Assistance during the transition period. employme- -Eligible for rehabilitation assistance and other nt allowances, as applicable. 6 Standing Crops or trees Owner of crops or trees -Compensation in cash calculated on the basis of crops, trees affected by land type, age and productive value of affected crops acquisition or or trees. temporary -Other allowances as applicable. acquisition/easement 10 7 Common Loss of access PAPs -Arrngement for new resource or rehabilitation resources assistance. 8 Electric Loss of, or damage PAPs -Replacement or compensation to cover cost of and/or to, affected assets, restoring the facilities. water partially or entirely. connection 9 Public Loss of, or damage Concerned agencies -Replacement or compensation in cash at facilities to, public replacement cost to respective agencies. infrastructure 10 Special Special assistance to Vulnerable groups and -Vulnerable group and indigenous peoples/ethnic assistance vulnerable group and indigenous/ minorities assistance / allowance based on indigenous/ethnic ethnic minorities identified needs and priorities. minorities 11 CAMBODIA Provincial and Peri-Urban Water Supply and Sanitation Project OPERATIONAL MANUAL PART B PROCEDURAL GUIDELINES ON RESETTLEMENT AND COMPENSATION OF LAND AND OTHER ASSETS March 2002 12 1. Introduction The objectives of the Cambodia Provincial and Peri-Urban Water Supply and Sanitation project is to provide sustainable water supply and sanitation services to consumers in small towns and peri-urban areas. Most of the consumers in small towns and settlements fall into the lower- income bracket of population. Therefore, the Project will seek to develop and implement financing mechanism through which low-income communities can participate as full-fledged paying customers of piped water supply systems. Towards this end, the Project will leverage private sector participation in water supply provision, so that coverage of population with safe and sustainable water supply is increased more rapidly. Additionally, the Project will also finance water supply systems that are procured through Output-Based Aid on a pilot basis whereby direct payments to low-income families from Credit would be made to cover for the initial connection fee (which are generally unaffordable to low- income families). The Project will involve construction, expansion or rehabilitation of reservoirs, wells, intake structures, distribution networks, and treatment systems. Also, watershed protection will be undertaken when a spring, river or other surface water sources are selected. Due to the small scale of operation the need for acquisition of land and other private assets is likely to be very limited. The proposed Policy Framework governs the basic principles of compensation and rehabilitation assistance for all types of adverse impacts, partial or severe, the acquisition of land and other assets, displacement of persons, demolition of structures, and loss of employment and sources of incomes due to the implementation of sub-projects under the Project. 2. Involuntary Resettlement Operations Manual The Operations Manual for the provincial and Peri-Urban Water Supply and Sanitation Project on Involuntary Resettlement and Compensation for Land and Other Assets has been prepared to guide project implementers how to compensate those who are adversely affected by project. The Operations Manual is divided into 2 main parts: (i) Policy Framework; and (ii) Procedural Guidelines. 3. Procedural Guidelines The present document includes the second part of the Operations manual, the Procedural Guidelines. These guidelines provide instructions regarding the implementation procedures needed to implement the resettlement plan for the project according to the principles set in the Policy framework. 4. Resettlement and Compensation Procedures The procedure for identification of impacts, conducting necessary surveys and field investigations and surveys; and preparation of required documents should follow the procedures outlined below: 13 4.1 Preliminary Study During the identification and preliminary study stages of project preparation, the project proponents will undertake a preliminary Social / Land Acquisition Assessment to identify the types, degree and scale of social impacts of the projects. To correctly identify the relevant social issues and to assess the type and level of information required during subsequent field investigations, particular attention will be paid to adverse impacts to the affected community, such as loss of land and other fixed assets and the number of persons marginally or severely affected and the types of vulnerable groups affected. Preliminary social and land acquisition assessment will also help in identification of risks and in deciding whether or not to proceed with the project. Attachment A shows a summary form including the checklist of information that needs to be collected to address social issues that should be produced after completion of preliminary social assessment. Additionally the preliminary study should describe the consultation process, feedback obtained and how it has been addressed. 4.2 Project Screening Most of the sub-projects would have only marginal impacts in terms of acquisition of private assets and displacement of people. The information collected during the preliminary social / land acquisition assessment will provide the basis for determining severity of impacts and the level and depth of subsequent field surveys, investigations and documentation required. In cases, where the preliminary social assessment indicates that the potential impact of the proposed project will be significantly adverse and the feedback from consultation indicates the PAPs and/or the public reject the project, the project authorities will reject or request reformulation of the project. For projects that are chosen for further preparation, they will be categorized as follows: Social Category 'Sl': Sub-projects with significant impacts on people. These are defined as follows: a. 200 persons (40-50 households) or more2 severely affected due to: ->20% loss of productive assets or where the loss is less than 20% but the remaining assets are rendered economically unviable; -Displacement due to the loss of land and/or structures -Permanent loss of incomes and employment b. 200 or more persons (40-50 households) belonging to the following vulnerable groups severely3 affected due to the project: -ethnic minorities 2 Where in a project more than 200 people affected but severally affected people remain < 200, the sub-project may be considered as Social category 'S2'. 3 Loss of income due to restricted access to community resources, loss of community ties, displacement, and restrictions on cultural practices. 14 -squatters and those with weaker titles -indigenous peopleS4 -poverty groups -women headed households Social Category 'S2': Where the impacts of the sub-project are marginal: a. Impacts are marginal5 although the number of people affected may be more than 200 in the case of loss of productive assets or for vulnerable groups (ethnic minorities, poverty group, squatters, women headed households), and indigenous peoples. Social Category 'S3': Sub-project does not result in acquisition of assets, displacement, loss of incomes and employments, restricted access to community resources, community ties, and restrictions imposed on cultural practices of vulnerable and/or ethnic minority groups. Public Participation In order for a project to be eligible, it must be developed using a participatory process. During project screening the project authorities will assess whether the project has adequately consulted with the key stakeholders, relevant NGOs and PAPs and if they have incorporated the feedback into the project. The relevant authorities should also provide suggestions to improve the process as the project moves forward. 4.3 Project Preparation Census and Inventory surveys, willingness to pay and other baseline investigations The project proponent will conduct the necessary field studies and other background investigations as specified during screening. Prior to undertaking the survey the project proponent should implement a public information campaign to describe the project components, types of impacts, content and schedule for the census and inventory or other background surveys. Preparation and Review of TORs Based on the census and inventory of data, the types of reports to be prepared: Land Acquisition and Compensation report; Resettlement Action Plans; will be determined and the TORs for the preparation of the reports will be prepared by the project proponent. The relevant project authorities (MIME/PPWSA) will clear the TORs and will authorize simultaneous 4 If in a project an entire indigenous people settlement is affected, even if the number is less than 200, the sub- project should be considered as Social category 'S '. Most of the projects will fall in this category. In the case of ethnic minorities, if the affected persons are spread over a large area (over the whole length of the road for example), do not form a community and are fully integrated in mainstream population, socially and economically, the impacts will not be considered severe even if the number of affected persons exceeds 200. However, in such case a 'Ethnic Minority Development Plan' as part of the RAP, may be necessary. 15 preparation of the aforementioned social assessment reports, and the feasibility study. The final reports will be submitted to the project authorities, who will review them as part of project appraisal6. 5. Land Acquisition and Compensation report In cases where the impacts of the sub-project are marginal such that less than 200 persons (about 40-50 families) are affected and/or displaced, or where the impacts are minor, although more than 200 persons may be affected, a simple 'Land Acquisition and Compensation Report' should be prepared. It should provide general information of the project, social impacts and the number of people affected, entitlements for compensation and other assistance for each category of PAPs, estimated cost, and implementation schedule. A generic outline of a 'Land Acquisition and Compensation Report' is provided in Attachment B. Acquisition of assets, compensation, resettlement and rehabilitation activities will only commence after the report is found acceptable by the MIME/PPWSA, or other relevant authority. 6. Preparation of a Full Resettlement Action Plan In cases where the project affects and/or displaces more than 200 people (40-50 families), a time- bound Resettlement Action Plan (RAP) for the project will be prepared in accordance with the provisions of this Framework. Resettlement plans should be built around a development strategy, and compensation, resettlement, and rehabilitation packages should be designed to improve or at least restore the social and economic base of those severely affected. Preference should be given to resettling people dislocated from agricultural settings into similar settings. A checklist of information required for preparation of resettlement action plans and a Generic Outline of resettlement plans are shown in Attachment C and D respectively. Where a project is likely to adversely affect households belonging to poverty groups, the resettlement plans should specify measures7, additional to the compensation entitlements, aimed to improve status of the poor to bring them up to an acceptable level above the poverty line. Acquisition of assets, compensation, resettlement and rehabilitation activities will only commence after the RAP is found acceptable by the relevant authorities and the World Bank. For the sub-projects funded by the World Bank, clearance of the Resettlement Action Plan / IPDP/EMDP by the Bank would also be necessary. The measures should focus to avoid potential social risks and should be organized around the themes that include: a) reducing barriers to access to markets, trading and employment opportunities; b) improving access to and delivery of essential social services to the poor; c) empowerment through good governance, sound participatory processes and effective organization of the poor; and d) reducing vulnerability to poverty through building social assets i.e. asset building strategies such as land-for-land, replacement housing, and increased security of tenure. Non-land based strategies may include placing greater emphasis on the customary rights and cultural practices of indigenous people and ethnic minorities; provision of improved or better access to micro-finance and affordable micro-credit facilities; providing appropriate training in new jobs; and improving access to markets and employment opportunities. Interventions should be designed with greater participation by, and consultation with, the poor to ensure that their needs, priorities and preferences are fully addressed, and in a transparent manner with full involvement of civil society and stakeholders. Selection of final stategy (ies) should be based on informed choices of affected people. 16 7. Consultation with PAPs on Eligibility and Entitlements After completing the inventory of affected assets and computing the compensation entitlements, the project proponent and local government will call for a meeting with all the project-affected-persons to discuss the policy on compensation. 8. Eligibility All Project Affected Persons (PAP) residing in, working, doing business, or cultivating land, or having rights over resources within the project area as of the date of the baseline surveys are entitled to be compensated for their lost assets, incomes and businesses at replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards and incomes. Lack of legal rights to the assets lost will not bar the affected persons from entitlement to such compensation and rehabilitation measures. 9. Entitlements PAPs will be entitled to the following compensation and rehabilitation measures: Compensation for residential land, houses and structures Provision of replacement residential land (house site and garden) of equivalent value or cash compensation at replacement cost according to PAP's choices; cash compensation reflecting full replacement cost of the house/structure affected without depreciation; (ii) If the PAP so wishes and the portion of the land to be lost represents 20% or less of the total area of the residential land area, and the remaining land is still a viable residential lot, cash compensation, at full replacement cost (market value), may be provided to the PAP; (iii) If after acquisition, the residential land and/or structure is insufficient to rebuild the residential structure lost, then at the request of the PAP the entire residential land and structure will be acquired to full replacement cost without depreciation; and (iv) Tenants who have leased a house for residential purposes will be provided with a cash grant of three months rental fee at the prevailing market rate in the area and will be assisted in identifying alternative accommodation. Compensation for Agricultural land and crops (i) The general mechanism for compensation of lost agricultural land will be through provision of "land for land" arrangements of equal productive capacity, satisfactory to the PAP. However, if the PAP so wishes and the portion of the land to be lost represents 20% or less of the total area of the landholding, and the remaining land is still a viable economic holding, cash compensation, at full replacement cost (market value), may be provided to the PAP; (ii) If more than 20% of a villager's agricultural land is acquired and the remaining holding is not viable, then the Project will acquire the entire landholding and provide compensation of the acquired land at direct land replacement. (iii) the loss of standing crops and fruit/industrial trees at market rates; and (iv) PAPs whose land is temporarily taken by works under the Project will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructure. 17 Compensation for Business losses (i) The mechanism for compensating loss of business will be: (a) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the PAP; (b) cash compensation for lost business structure reflecting full replacement cost of the structures without depreciation; and (c) cash compensation for the loss of income during the transition period. Compensation for Other Losses PAPs will also be provided compensation at full replacement cost, without depreciation for any other fixed assets affected in part or in too by the Project such as tombs and water wells. In cases where community infrastructure such as schools, factories, water sources, roads, sewage systems or electrical supply is damaged, the Project will ensure that these would be restored or repaired as the case may be, at no cost to the community. 10. Consultations / Negotiations on Compensation Amounts Acquisition of land and other assets will be kept to a minimum in projects. Sub-project proposals that would require demolishing houses or acquiring productive land will be carefully reviewed and their adverse impacts minimized through alternative designs and appropriate modifications. In projects causing only marginal impacts on relatively small group of persons and in small- scale community based projects the land and other assets may be acquired through: a) Voluntary Contributions. In accordance with traditional practices, especially where the project proponents are CBOs and NGOs, community may elect to voluntarily contribute land or assets and/or relocate temporarily or permanently from their land without compensation; and b) Contributions Against Compensation based on negotiated settlement. The project proponent will ensure that all occupants of land and owners of assets located in a proposed project area are fully consulted. Community meetings will be organized to inform villagers about their rights to compensation and option available in accordance with these Guidelines. The Minutes of the village meeting shall reflect the discussions held, agreements reached, and include the following: a) for any voluntary contributions, name of contributor and details about the contribution; b) for land/asset acquisition against compensation, names of affected persons and details about the nature and level of compensation. The project proponents shall provide a copy of the Minutes to affected persons and confirm in discussions with each of them their requests and preferences for compensation, agreements reached, and any eventual complaint. 18 The project proponents will negotiate the compensation amount and other options with PAPs. The negotiation amount that should be established for negotiation is the current market value at the locality. This price should be used as the floor price in the negotiation with the PAPs to arrive at a final compensation amount. The consultation with PAPs will also determine other options for compensation such as: replacement land, other equivalent productive assets or other in-kind compensation as negotiated during the consultation meetings. The project proponent will ensure that any of the following means of compensation are provided to affect persons and in a timely manner: a) replacement of land with an equally productive plot or other equivalent productive assets; b) materials and assistance to fully replace building / structures to be demolished; c) replacement of damaged or lost crops at market value; and d) other mutually acceptable in-kind compensation. In projects where a large number of people are affected due to the loss of land and/or other fixed assets and where negotiated settlement on compensation is difficult to achieve, the compensation rates would be established following the provisions of the Assessment Framework and the PAPs would be informed of the compensation policy and applicable rates in public meetings. The information would be included in the documents. Actual compensation payment will be made during the implementation phase of the project. 11. Public Participation and Consultation Land Acquisition and compensation report and RAPs will be prepared in consultation with, and participation of, key stakeholders, and the local authorities. Following the objectives of the Resettlement Policy Framework, PAPs and other key stakeholders will be fully informed of the project objectives, likely benefits and adverse impacts, and the provisions for compensation and other assistance under this Assessment Framework through an effective public information campaign and public meetings. The PAPs will be consulted by the project proponents on all major issues throughout the project planning, design and implementation and will be invited to participate in public meetings held by the respective local government officials and other project proponents. These meetings will be the occasion to discuss relevant social issues, likely impacts and benefits of the project, and will provide a forum for the PAPs to express their opinion and offer their suggestions. Copies of the final documents should be submitted to the local authorities for public disclosure and public announcements should be made in mass media informing general public, and particularly the affected communities, about the documents. 12. Project Implementation Internal Monitoring and Supervision 19 Internal monitoring and supervision by the project proponents and the relevant project authorities: (a) verify that the baseline information of all PAPs has been carried out and that the valuation of assets lost or damaged, and the provision of compensation, resettlement and other rehabilitation entitlements has been carried out in accordance with the provisions of this Policy Framework and the RAPs; (b) oversee that the RAPs are implemented as designed and approved; and (c) verify that funds for implementing the RAPs are provided by project proponent in a timely manner and in amounts sufficient for their purposes, and that such funds are used in accordance with the provisions of the RAPs. Monthly supervision and monitoring reports will be submitted to the project authorities. External Monitoring and Supervision In projects with significant adverse social impacts, including displacement of large number of households, the project authorities will conduct periodic supervision of implementation. The project authorities may also contract an independent agency such as: NGOs, academic or research institutions or independent consulting firms, with qualified and experienced staff, for external monitoring in accordance with an agreed terms of reference. In addition to verifying the information furnished in the internal supervision and monitoring reports prepared by project staff, the scope of work for external monitoring will: (a) determining adequacy of compensation rates; (b) determining whether the procedures for PAPs participation and delivery of compensation and other rehabilitation entitlements have been done in accordance with this Policy Framework and the respective RAP; (c) assessment of whether the objective of enhancement or at least restoration of living standards and income levels of PAPs has been met; (d) gathering qualitative indicators of the social and economic impacts of sub-project implementation on the PAPs; and (e) suggesting modification in the implementation procedures of the RAPs to achieve the principles and objectives of this Policy Framework. 20 Attachment A Preliminary Social Impact / Land Acquisition Assessment Checklist of Information on Resettlement Project: Location: Estimated Number of Project Affected Persons9 (PAPs): Types of Impacts (Social and Economic Risks)10: Social Impacts Yes / No / Likely/ Where possible, provide details (Expected Not applicable number of households, area of land, types of structures likely to be affected) * Is land acquisition necessary" * Presence of squatters * Loss of structures resulting in displacement * Displacement of people due to loss of productive assets * People losing means of livelihood and mncomes (Temp. / Permanent) * Is there any risk of economic marginalization of PAPs * Basic facilities / services will be inaccessible (Temp. / Permanent) * Impact on crops, trees and other fixed assets " Tenants/Lessees losing any fixed assets * Loss of community assets * Loss of existing social & community ties 8 Information for SA should be collected in consultation and coordination with project proponent, local authorities, local NGOs and community leaders of affected community. Where possible, sufficient time should be spent for group discussions with community likely to be affected by the project. 9 The number of people likely to be affected should be based on rapid assessment 1o It may not always be possible to get information on some of the above impacts at the preliminary social assessmrnt stage. However, consultants should pay particular attention to these types of impacts during the project preparation stage. " Provide location map indicating project area boundary, total area, access, use of adjoining land etc. 21 Impacts on Vulnerable Grou ps, if any: Types Yes / No / Likely/ Remarks Not applicable (Where possible, provide estimated number of households & persons) * Poverty group affected * Women headed households affected * Ethnic Minority Affected * Indigenous Peoples Affected * Other vulnerable groupsl2 affected Institutional Constraints, if any: Description Yes / No / Likely/ Remarks Not applicable * Will coordination between several local and provincial govt. be required * Does the sub-project proponent has the capacity for resettlement implementation * Are any training and capacity building interventions required prior to RAP implementation Brief Description of the project indicating ownershipl3 of land and area: 12 This may include disabled, child labor, bonded labor, etc. 13 If the land has already been acquired in the past, indicate the year of acquisition, number of owners, any acquisition of structures and other fixed assets, rates at which the compensation was paid, if any, and other allowances and assitance provided to owners. In case the state land is 'repossessed' from any occupiers, provide information on the year the land is 'repossessed', describe the previous use of land, number of occupiers, any loss of incomes to occupiers, and any compensation or assistance to occupiers for their losses, if any. 22 Annex B LAND ACQUISITION AND COMPENSATION REPORT GENERIC OUTLINE 1. INTRODUCTION Brief description of the project (provide key map of the project area) Describe types of impacts : Summary description of the extent of acquisition of land and other assets 2. DESCRIPTION OF PROJECT AFFECTED PERSONS Description of Project Affected Families including their spatial distribution Socioeconomic characteristics of project affected families: * Total number of families and persons affected by the sub-project * Employment types and major sources of income, * Tenure status (land and house/structures) * Total and affected land and buildings: areas, house types and condition, Categories and numbers of affected households by type and degree of impacts such as: a. affected households with loss of their entire holdings and are required to relocate b. affected households with loss of their partial assets and not required to relocate c. tenants, landless laborers, etc. affected by the project d. affected households with loss of incomes and employment 3. COMPENSATION POLICY AND ENTITLEMENT CRITERIA Describe major elements of compensation policy: objectives, entitlement criteria Indicate compensation entitlements for each category of PAPs Describe other assistance (transport allowance, rehab. assistance etc.) provided to severely affected families 4. COST ESTIMATES AND BUDGET Aggregate costs for each type of asset loss and implementation management 5. PUBLIC PARTICIPATION, CONSULTATION & GRIEVANCE REDRESSAL Consultation with and role of stakeholders at different stages of the project Existing and project specific mechanisms for grievance redress mechanism 6. ORGANIZATIONAL SET-UP Organization structure of the unit/division in the local government responsible for management, supervision and RAP implementation 7. IMPLEMENTATION SCHEDULE Implementation schedule for land acquisition and compensation for each component of the project, description of different activities, sequence, Time-table for implementation of different RAP activities in relation to the implementation of the project 23 Annex C Check-list of information required for Preparation of RAP Sources of information -name and address of PAP Field Survey -household size -do- -total and affected area of land by type and use -do- -number, total and affected area of houses and other structures -do- -tenure status of affected land and structures -do- -type of structure affected (permanent, semi-permanent and temporary) -do- - number of businesses affected, if any, by type -do- -identify temporary and permanent loss -do- -identify the land belonging to government and other institutions -do- -estimated number of households marginally affected -do- -main occupation and monthly household income from primary sources -do- -list of other fixed and moveable assets affected -do- -length of stay in the area and building -do- -amount of rent paid by tenants / lessee -do- -viability of remaining land and/or building for continued use -do- -quantity, type and quality of community resources affected -do- -prevailing land prices in the vicinity for land of similar productive quality and tenure status Market survey -current prices for structures from provincial pricing committees -do- -comparative market prices for structures of same category and class Market survey 24 Annex D RESETTLEMENT ACTION PLAN (RAP) GENERIC OUTLINE 1. INTRODUCTION * Description of project components * Physical, social and economic characteristics * Summary description of asset acquisition and expected adverse impacts * Identification of principal stakeholders * Identification of social groups vulnerable to impoverishment or debilitation * Indicate measures taken to minimize adverse impacts 2. CENSUS AND SOCIOECONOMIC SURVEY RESULTS * Review of socioeconomic characteristics of Project-Affected Persons (PAPs), including: Spatial distribution, household size and composition; age-sex structure; income levels, including primary occupation, supplementary sources of income, and subsistence activities; tenure status (land and structures); characteristics of collective land holdings, including area and qualitative characteristics; characteristics of structures, including size, construction type. * Categories and numbers of PAPs by type and degree of impacts such as: a) Severely affected households required to relocate b) Partially-affected households not required to relocate c) Households affected by minor impacts, receiving only easement compensation or "moving back" assistance d) Tenants, laborers, employees, or other non-landed persons adversely affected by the project 3. COMPENSATION POLICY AND ENTITLEMENT CRITERIA * Description of objectives of compensation policy * Eligibility criteria for PAPs, including cut-off date if necessary * Methods used for asset valuation and assessment of compensation * Categories of collective compensation and individual compensation * Description of compensation entitlements and other forms of assistance for each category of PAPs * Compensation matrix consistent with above 4. RELOCATION PLAN (If necessary) * Review of suitability of alternative relocation sites * Site selection criteria * Review of consultation procedures with PAPs in selection of resettlement alternatives * Socioeconomic data regarding host population, if applicable * Review of consultation procedures with host population * Timetable for displacement and relocation 5. INCOME RESTORATION MEASURES (As necessary) * Categorical review of employment patterns of PAPs * Description of adverse impact on employment patterns * Description of eligibility criteria for income restoration measures * Feasibility analysis of any alternative income restoration programs * Description and feasibility of plans for use of collective land compensation * Training needs of PAPs in the context of employment opportunities and market demand * Access to credit and micro-enterprise support for PAPs interested in small business development * Institutional arrangements to finance and manage income restoration programs 6. PUBLIC PARTICIPATION AND CONSULTATION * Description of procedures for consultation with PAPs 25 * Description of opportunities for PAPs to participate in resettlement planning and implementation * Description of procedures for information dissemination 7. GRIEVANCE REDRESSAL MECHANISM * Procedures adopted for filing complaints, review, and decision-making 8. ORGANIZATIONAL SET-UP * Administrative set-up and agency responsible for implementation of resettlement activities * Coordination among implementing agencies from different ministries or jurisdictions. * Assessment of organizational capacity, including attention to authority structure, prior experience, staffing, equipment, and financial resources * Plans for training and capacity building as needed * Assessment of potential capacity of PAP organi2ations or NGOs in project area 9. MONITORING AND SUPERVISION * Listing of performance monitoring indicators * Institutional responsibilities and procedures for internal project monitoring * Discussion of role, if any, of PAPs and NGOs in monitoring * Procedures for remedial actions following identification of problems * Content and frequency of monitoring reports 10. COST ESTIMATES AND BUDGET * Statement of financial responsibility for all resettlement-related costs * Estimate of aggregate costs for each type of asset loss * Estimated costs for income restoration programs, including initial capital investment, recurring costs for continued provision of rehabilitation services and mitigation measures I1. IMPLEMENTATION ARRANGEMENTS * Timetable for implementation of all resettlement activities, tied to overall project timetable * Procedures for implementation or delivery of key elements, as relevant: a) Review of land-for-land arrangements, including timetable and funding for development of relocation sites and necessary services or other inputs b) Review of procedures for payment of compensation c) Provisions for tenants, share-croppers, squatters and others with temporary tenure d) Review of operational procedures for job placement, micro-finance, or other income-restoration programs 26