Philippines - Mindanao Rural Development Project - resettlement plan

RP- 33 Philippines: Mindanao Rural Development Program November 8, 1999 POLICY FRAMEWORK FOR LAND ACQUISITION, INVOLUNTARY RESETTLEMENT, AND REHABILITATION OF PROJECT AFFECTED PERSONS TABLE OF CONTENTS 1. Introduction A. The Program B. Policy Framework C. Project Affected People D. Principles and Objectives 2. Entitlement Policy 3. People's Participation and Consultation 4. Resettlement Plan A. Inventory and Entitlement B. Socio-Economic Survey C. Full Plan 5. Institutional and Implementation Arrangements A. Institutional Arrangements B. Implementation Schedules C. Complaints and Grievances D. Supervision, Monitoring and Evaluation 6. Costs and Budget Attachments 1. Inventory Form 2. Entitlement Form 3. Socio-Economic Form 4. Outline of information required for Full Resettlement Plan 5. Sample Checklist for Land Acquisition Activities  1. Introduction A. The Program 1. The proposed Mindanao Rural Development Program (the Project) is a poverty reduction program for the rural poor and indigenous communities of Mindanao. The Project would target constraints to increasing agricultural productivity. It is envisaged to be a phased long-term program, possibly covering between 12 to 15 years, with a programmatic approach bringing in additional provinces every three to four years to eventually cover all 24 provinces of Mindanao. While the actual components for each province will be driven by their respective needs and demands. initial broad categories are identified as follows; a) institutional development; b) rural infrastructure; and c) agricultural productivity enhancement. Specific sub-projects under each component will be developed by each province and over them. 2. For the first phase or APL I of MRDP, the following components have been proposed: a) rural infrastructure which includes rural roads, communal irrigation systems, and rural water supply; b) community funds for agricultural development; c) coastal/marine biodiversity conservation; and d) LGU institutional implementation support. Rural access infrastructure would cover rehabilitation of farm to market roads including the rehabilitation of bridges and culverts; rehabilitation of provincial roads and bridges. Communal irrigation systems would focus on the rehabilitation of existing systems. Rural water supply would focus on levels I and 2 water supply systems. Given the variety of needs expressed by communities during the Social Assessment, the Project has proposed that a Community Fund be established in participating provinces to finance small sub-projects identified by communities and barangays, which fall within an agreed menu of investment and service related programs. B. Policy Framework 3. The magnitude of adverse impact is anticipated to be very marginal during the Project and will only be known once the specific roadlinks, communal irrigation systems and other sub-projects are selected and approved. To adequately address the rehabilitation and compensation of the people possibly to be affected by the acquisition of land under the Project, the Government of the Philippines and MRDP has adopted this Policy Framework for Land Acquisition, Involuntary Resettlement and Rehabilitation of Project Affected Persons (the Resettlement Policy). 4. The principal objective of the Resettlement Policy is to ensure that all project affected persons will be compensated for their losses and provided with assistance to improve, or at least maintain, their pre-Project living standards and income earning capacity. 5. Resettlement Policy lays down the principles and objectives, eligibility criteria of entitlements, legal and institutional framework, modes of compensation, peoples participation features and grievance procedures that will guide the compensation of the project affected people. C. Project Affected People 1 6. The project affected persons (PAPs) include the following persons to be identified by the baseline information collected for the Inventories as specified in Section 4 of this Resettlement Policy: a) person whose house is in part or in toto affected (permanently or temporarily) by the Project; b) person whose premise and/or agricultural land is in part or in toto affected permanently or temporarily) by the Project; c) person whose crops (annual and perennial) and trees are affected in part or in toto by the Project; and d) person whose business is in part or in toto affected (permanently or temporarily) by the Project. D. Principles and Objectives 7. The principles outlined in the World Bank's Operational Directives 4.30 have been adopted in preparing this Resettlement Policy. In this regard the following principles and objectives would be applied: a) Acquisition of land and other assets will be minimized as much as possible. b) All PAPs residing or cultivating land along an alignment or segment of alignment to be rehabilitated or improved or constructed under the Project, as of the date of the baseline surveys, are entitled to be provided with compensation sufficient to assist them to improve or at least maintain their pre-Project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost will not bar the PAP from entitlement to such rehabilitation measures. c) The compensation to be provided are: (i) compensation at replacement cost for houses and other affected structures; (ii) agricultural land for land of equal productive capacity acceptable to the PAP; where land is not available then compensation at replacement cost will be provided for agricultural land acquired; (iii) replacement of premise/residential land of equal size acceptable to the PAPs; and (iv) transfer and subsistence allowances. I d) Where a landowner agrees to compensation for land to be acquired in an amount equal to zonal value plus 10% (as prescribed under Administrative Order 50) and that amount is less than the replacement cost of the land, a supplemental amount shall be paid to the landowner prior to the commencement of project works on the land or the displacement of such person from the land. The supplemental amount shall be equal to the difference between zonal value plus 10% and the replacement cost of the land. The land replacement cost will be determined based on an appraisal of its fair market value (to be established during resettlement action plan preparation) by an independent assessor who is a member of an accredited local appraisal association working in accordance with internationally recognized standards. 1 The method for defining replacement cost is the "valuation of assets which helps determine the amount sufficient to replace lost assets and cover transaction costs... .For losses that cannot easily be valued or compensated in monetary terms (e.g. access to public services, customers and suppliers; or to fishing, grazing or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard"'. 2 e) Replacement of agricultural land, where possible, will be as close as possible to the land that was lost and acceptable to the PAPs. f) Plans for acquisition of land and provision of compensation will be carried out in consultation with the PAPs, to ensure minimal disturbance. Entitlements will be provided to PAPs no later than one month prior to expected start-up of works at the respective sub- project site. g) Financial and physical resources for compensation will be made available as and when required. h) institutional arrangements will ensure effective and timely design, planning, consultation and implementation of the Inventories. i) Effective and timely supervision, monitoring and evaluation of the implementation of the action plans will be carried out. 2. Entitlement Policy 8. The DA authorizes MRDP's PCO, working closely with LGU, to follow the conditions and procedures set forth in this Resettlement Policy. PAPs will be entitled to the following types of compensation and rehabilitation measures: a) PAPs losing residential land and structures i) The provision of replacement residential land (house site and garden) of equivalent size, satisfactory to the PAP; and cash compensation reflecting full replacement cost of the structures, 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 at 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. b) PAPs losing 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; 3 ii) If more than 20% of a villager's agricultural land is acquired andthe 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) PAPs will be compensated for the loss of standing crops and fruit or industrial trees at market price; and iv) PAPs whose land is temporarily taken by the works under the Project will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructure. c) PAPs losing business i) The mechanism for compensating loss of business will be; (1) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the PAP; (2) cash compensation for lost business structure reflecting full replacement cost of the structures, without depreciation; and (3) cash compensation for the loss of income during the transition period. 9. PAPS will also be provided compensation at full replacement cost, without depreciation for any other fixed assets affected in part or in toto 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. 3. People's Participation and Consultation 10. The PAPs will participate throughout the various stages of the planning and implementation of the resettlement activities. For these purposes and prior to any resettlement activities, thePAPs will be fully informed about the Project and about the provisions of this Resettlement Policy at meetings held by the respective Project staff at proVincial, municipal and the barangay levels. 11. Each household PAP will be fully consulted about acceptable alternatives and options and informed by the relevant Project staff at municipal and barangay levels of their entitlements and rehabilitation options, where.applicable. 4. Resettlement Plan A. Inventory and Entitlement 12. An inventory for each road, bridge, irrigation canal, water supply pipe alignment or segment thereof will be prepared by the MPDO2 and other municipal agencies concerned with resettlement and assisted by the respective PPIU3,. This will be approved by the PCO4 of the Department of Agriculture (DA) for any sub-project work program, and submitted to the World Bank (Manila Office) for its concurrence. 2 MPDO: Municipal Project Development Officer PPIU: Provincial Project Implementation Unit 4 PCO: Project Coordination Office 4 13. The information for an Inventory will include the following information for each PAP household (see Attachment 1); a) number of persons and names; b) amount and area of all the residential plots lost; c) amount, category/type and area of agricultural land lost; d) quantity and types of crops and trees lost; e) quantity and category of any fixed assets lost; f) productive assets lost as a percentage of total productive assets; and g) temporary damage to productive assets. 14. The entitlements of assets and land affected are calculated based on the above information (see Attachment 2). B. Full Resettlement Plan and Survey 15. In cases where the potential adverse impact of a sub-project on PAPs is major, a full resettlement plan for each such road or segment of road or irrigation system or any sub-project will be prepared by the MPDO and assisted by the PPIU in accordance with the provisions of this Resettlement Policy.5 The full resettlement plan will include among others: (a) a completed Inventory; (b) detailed compensation and entitlement calculations for each affected household, where applicable; (c) a detailed socioeconomic survey of PAPs describing their age, sex, ethnicity, education, main occupation, sources of income, and total household income per year (see Attachment 3); (d) location, area and category of the replacement residential and agricultural land to be provided, if that be the case; (e) a time-bound action plan for implementation; (f) a detailed budget and source of funding for the various compensation measures; and (g) arrangements for external monitoring and evaluation. Attachment 4 provides an outline of information required by a full resettlement plan. 5. Institutional and Implementation Arrangements A. Institutional Arrangements 16. The responsibility for implementing the Resettlement Policy, the inventories and the resettlement plans are as follows: a) The overall responsibility for enforcement of the Resettlement Policy rests with the PCO established in Department of Agriculture (DA) under the Project. In coordination with the respective PPIU, each MPDO is responsible for preparing the inventories, the resettlement plans and for the day-to-day implementation thereof within their respective jurisdiction. The Barangay leaders and the Barangay Committees will ensure the active and effective consultation and participation of the PAPs in the preparation and implementation of the resettlement plans. b) Funds for implementing the inventories and resettlement plans will be provided by the Municipality based on budgetary requirements established by Municipal and Barangay Impacts are considered minor if the affected people are not physically displaced and less than 10% of their productive assets are lost. If the reverse were to occur, the impacts will be considered major. 5 Committees in consultation with the PAPs. The MPDO can approach the PPIU for financial assistance should they find it necessary. B. Implementation Schedule 17. A detailed implementation schedule of the various activities to be undertaken will be included in each inventory and resettlement plan. 18. Payment of compensation and provision of other entitlements (in cash or in-kind) shall will be satisfactorily completed for each sub-project prior to the World Bank giving "no objection" for award of contract for civil works. 19. The same time requirement would apply if PAPs voluntarily contribute any part of their land and/or assets for the sub-project. That is all deeds of donations and other relevant legal documents for each sub-project shall be satisfactorily completed prior to the World Bank giving "no objection" for award of contract for civil works. C. Complaints and Grievances 20. Complaints and grievances relating to any aspect of the resettlement entitlements and/or activities, including the determined area and price of the lost assets, will be handled as follows: a) As a first stage, PAPs will. present their complaints and grievances to the Barangay Committee, which will have to provide a written response to the PAP, within fifteen (15) calendar days of receiving the complaint. If the PAP is not satisfied with the decision of the Committee; the PAP may present the case to the MPDO within fifteen (15) calendar days of receiving the written response from the Barangay Committee. The decision of the MPDO should be rendered within thirty (30) calendar days of receipt of the PAP's appeal, and can, at the request of the PAP within fifteen (15) days, be reviewed and rendered a judgement by the PPIU. The decision of the PPIU will be provided to the PAP in writing within thirty (30) calendar days of the request. b) If the PAP is not satisfied with the decision of the PPIU, the case may be submitted for consideration by the national DA PCO. 21. PAPs will be exempted from all administrative and legal fees. D. Supervision, Monitoring and Evaluation 22. Implementation of the inventories and resettlement plans will be regularly supervised and monitored by the respective PPIU in coordination with the respective MPDO and Barangay Committee. The findings will be recorded in quarterly reports to be submitted to the DA PCO. 6 It is common practice for villagers to volunteer community use of small amounts of their land or assets without compensation. If this is the case, similar procedures of full consultation with village donors, complaint and grievance mechanism, and monitoring be established by each municipality to ensure that the land is donated of the person's own free will, that as a result of this act the person and his household are not adversely impacted, and that they can have an established recourse to voice their complaints. Detailed inventory and survey of land acquired should be undertaken. The donation should be covered by a deed of donation and other legally required documents. 6 23. Internal monitoring and supervision by PPIU and MPDO will: a) Verify that the baseline information of all PAPs has been carried out and that the valuation of assets lost or damaged, the provision of compensation and other entitlements, and relocation has been carried out in accordance with the provisions of this Resettlement Policy, the respective inventory and resettlement plan. b) Oversee that the inventory and resettlement plan is implemented as designed and approved. c) Verify that funds for implementing the inventory and resettlement plan are provided by the Municipality and/or Province to the Barangay Committee in a timely manner and in amounts sufficient for their purposes, and that such funds are used by the Barangay Committee in accordance with the provisions of the respective inventory and resettlement plan. d) Record all grievances and their resolution and ensure that complaints are dealt with in timely manner. 24. An external agency or agencies will be retained by DA PCO, as and when needed, to periodically carry out independent monitoring and evaluation of the implementation of the inventories and resettlement plans. The external agencies can be from academic or research institutions, non-governmental organizations (NGO) or independent consulting firms, all with qualified and experienced staff and terms of reference acceptable to the World Bank. 25. In addition to verifying the information submitted in the internal supervision and monitoring reports of the PPIU, the external monitoring agency will visit a sample of 20% of PAP households in each Province prior to approval of civil works and/or other occasions as deemed necessary by the PCO. The external monitor will: a) Determine whether the procedures for PAPs participation, relocation and delivery of compensation and other entitlements has been done in accordance with this Resettlement Policy and the respective inventories and resettlement plans. b) Assess if the Resettlement Policy's objective of restoration of living standards and income levels of PAPs have been met. c) Gather qualitative indications of the social and economic impact of Project implementation on the PAPs. d) Suggest modification in the implementation proceduresof the inventories and resettlement plans, as the case may be, to achieve the principles and objectives of this Resettlement Policy. 6. Costs and Budget 26. Each inventory and resettlement plan will include detailed cost of relocation, compensation and other entitlements, with a breakdown by agricultural land, residential land, business land, houses, business and other assets. The cost estimates will make adequate provision for contingencies. 7 27. Sources of funding for the various inventories and resettlement activities will be clearly specified in the cost tables. 8 Attachment I Philippines: Mindanao Rural Development Program Inventory of Project Affected People Component: Province: Municipality: Barangay: Survey Name of No. of Total Land to Loss as Temporary No. Head of persons Landholding be % of Loss of Assets Loss of Crops Loss of Other Other Losses Losses Household in Hhold of Hhold in Acquired total assets (specify) M2 in M2.by Type of Use Number Structures Structures Area of Fruit trees and type permanent temporary residential lost Type Paddy Other Wells Tombs Residence Business Income of lost (M2) (M2) land lost and area (Specify) Number Number (rented) Lost Loss structures (M2) Number (M2) 9 Attachment 2 Philippines: Mindanao Rural Development Program Entitlements of Project Affected People Province: Municipality: Barangay: Name of Head Compensation for Land Compensation for Structures Compensation for Crops & Trees Compensation for Wells and Total Survey of Household Tombs In No. Peso Quantity Unit Price Entitlement Quantity Unit Price Entitlement Quantity Unit Price Entitlement Quantity Unit Price Entitlement Sq. Meters Sq. Meters in Peso Sq. Meters in Peso in Peso Unit in Peso in Peso Unit in Peso in Peso 10 Attachment 3 Philippines: Mindanao Rural Development Program Socio-Economic Survey of Project Affected People Province: Municipality: Barangay: Name of Household Member Occupation Estimated Survey ID No. of Sex Age Ethnicity Education and Sources of Employment Total No. Household Income Income per Year 11  Attachment 4 Philippines: Mindanao Rural Development Program Full Resettlement Plan Outline Example 1. Sub-project description (e.g., municipal road link, communal irrigation system, water supply system, etc.) 2. Avoidance or minimization of displacement and other adverse social impacts (steps taken to minimize land acquisition by modifying designs and other approaches) 3. Amount of land acquisition and number of project affected people and vulnerable groups 4. Full inventory (see form in Attachment 1) 5. Socio-economic survey (sample respondents) of the project area and the proposed resettlement site (see form in Attachment 3) 6. Consultation and participation plan 7. Entitlement and compensation package (see form in Attachment 2) 8. Rehabilitation and income restoration measures 9. Institutional arrangements, required capacity and implementation skills 10. Implementation plan and schedule (e.g., what steps are taken to prepare for resettlement and/or paying compensation; when will it take place; how will it be coordinated with civil works of sub-project; etc) 11. Training program (if appropriate, as part of rehabilitation measures for affected people) 12. Monitoring (internal and external) and reporting (refer to guidelines in Land Acquisition and Involuntary Resettlement Policy Framework) 13. Grievance procedures specific to sub-project and location (see guidelines in Land Acquisition and Involuntary Resettlement Policy Framework) 14. Information dissemination plan and transparency measures 15. Budgeting and funding source 13 Attachment 5 Sample Check List for Land Acquisition Activities for MRDP ACTIVITY RESPONSIBLE Annual Planning by Province/Municipality for Infrastructure: 1 Prepare list of proposed roads for rehabilitation MPDO 2 Submit list to Municipal Multi-Sectoral Committee (MSC) MPDO 3 Prioritize proposed roads for sub-project MSC 4 Submit list to PPIU MPDO Inventory/Survey For Each Subproject with Land Acquisition: 1 Give public notice of intention to acquire land, and grievance period MPDO 2 Send written notification to project affected people (PAPs) MPDO 3 Hold public meeting with Barangay Officials and PAPs MPDO 4 Conduct on-site verification of assets to be acquired with each head of MPDO/BDC household 5 Complete Inventory and Entitlement Forms of projected affected families MPDO/BDC 6 Consult with PAPs regarding compensation MPDO/BDC 7 Sign Compensation Protocol by authorities and head of household MPDO/BDC 8 Submit of Inventory & Entitlement Forms to PPIU MPDO 9 Submit Inventory & Entitlement Forms to PCO and World Bank for approval PPIU Under MRDP1, submission of required documents will follow a two-step process similar to and integrated with the procurement process (refer to Operation Manual): Step 1 - Submit all completed inventories and entitlement forms as well as documentation on consultation for No Objection #1 Step 2 Submit all duly completed deeds of donation and proof of satisfactory completion of resettlement activities (signed Compensation Protocol) for No Objection #2 10 Review and determine if full RAP is needed (if impacts are significant where PCO people are physically displaced and more than 10% of their productive assets are lost, then a full RAP is required) 11 If full RAP not required, implement compensation activities MPDO/BDC Full Resettlement Action Plan (RAP): 12 Undertake socio-economic survey and complete form MPDO/BDC 13 Prepare full RAP (full RAP includes Inventory, Entitlement, Socio-Economic MPDO/BDC Survey, Relocation and Compensation Plans, Schedules and Budget) 14 Submit full RAP to PCO for review PPDO 15 Submit full RAP and PCO comments to DA and World Bank for review and PCO approval 16 Wait for No Objection from DA and WB for full RAP (same as Step 1 in # 9 DA, World above) Bank 17 Implement full RAP after approval from DA and WB (same as Step 2 in # 9 MPDO/BDC above) Award of Contract for Civil Works The Bank will provide "no objection" to award of contract only after all activities for land acquisition, compensation and resettlement have been satisfactorily completed. Monitoring 1 On-going Internal monitoring and reporting PCO/PPIU 14 ACTIVITY RESPONSIBLE 2 Hire Independent Monitoring Agency PCO 3 Start external monitoring External Monitor 4 Submit external monitoring report to World Bank (annually) PCO 15