Tanzania - Songo Songo Gas Development Project - resettlement plan (Vol. 2 of 8) : Resettlement plan - Addendum

RP-58 VOL. 2 Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum November 30, 2000   TransCanada 801-7th Avenue S.W. P.O. Box 2535, Station M Calgary, Alberta, Canada T2P 3P7 By courier November 30, 2000 The World Bank 1818 H Street, N.W. 'Washington, DC 20433 USA Attention: Karen Rasmussen Senior Financial Analyst Dear ,s.lRasmussen: Re: Sonao Soneo Gas-to-Electricity Project - Resettlement Plan Addendum On behalf of the Government of the United Republic of Tanzania (GOT), the Ministry of :Energy and Minerals (MEM), and the Tanzania Petroleum Development Corporation (TPDC), OTC is pleased to submit to The World Bank the final version of the Resettlement Plan Addendum for the Songo Songo Gas-to-Electricity Project. You will recall that OTC met with World Bank environmental representatives in 'Washington on February 18, 1999 to discuss the Bank's requirements for updating the Resettlement Plan. At that meeting, it was agreed that, on behalf of TPDC, OTC would prepare an Addendum to the December 1997 Resettlement Programme & Plan that would: * Describe how OTC implemented the Wayleave Acquisition Program (WLAP); * Describe how OTC resolved disputes relating to the WLAP compensation process; * Outline a procedure and schedule for conducting follow-up socio-economic studies to monitor the implementation of the resettlement process; l Discuss the establishment of a monitoring group to report independently on the resettlement process and its impact on those being resettled; and Update the costs of installing basic infrastructure in the two resettlement areas. The attached Addendum satisfies these requirements. In addition, the Addendum also addresses the comments of the Bank's social environmental expert, Cyprian Fisiy, which were contained in your e-mail of July 13, 2000. In this regard, particular reference should be made to sections 3.3 (h), 4.3, 4.4 and 5. TransCanada PipeLines Limited  Page 2 of 2 Please note that the Addendum is designed to supplement the December 1997 Resettlement Programme & Plan, which is also attached, and that both documents together comprise the Resettlement Plan. I would draw your attention to the fact that the total cost of both the infrastructure development and socio-economic monitoring programs is approximately US$ 2.2 million. It is our understanding that this cost is within the range of funding available from the Bank for this work. The attached submission concludes TransCanada's commitments with regard to preparing the Resettlement Plan. We trust that you will find it satisfactory. In conclusion, we wish all project stakeholders a speedy and successful path to Financial Closing. Yours sincerely, t2C Corey Goulet Project Director CG/pl Att. cc: Cyprian Fisiy, The World Bank Patrick Rutabanzibwa, MEM Bashir Mrindoko, MEM Charles Omujuni, MEM Mwara Shoo, MEM Yona Killagane, TPDC Halfani Halfani, TPDC Gabriel Bujulu, TPDC E. Mwingira, TPDC Helen Wilson, AES Sirocco Limited David Wilson, AES Sirocco Limited Don MacPhail, PanAfrican Energy U.K., Ltd. Jim McCardle, Songas Dorah Swai, Songas Patrick Leys, TransCanada International  TRANSMITTAL TransCanada International 801-7'h Avenue S.W. P.O. Box 2535 Station M Calgary, Alberta, Canada T2P 2N6 Writer's Direct Tel: (403) 290-6354 Writer's Direct Fax: (403) 290-7661 Date: November 30, 2000 To: See distribution below From: Patrick Leys Subject: Songo Songo Gas-to-Electricity Project - Resettlement Plan Please find attached copies of the above Resettlement Plan, which has been distributed by courier as follows: Documents Resettlement I Resettlement Plan Distribution | Programme & Plan Addendum Total Sets (December 1997) (November 30, 2000) The World Bank __ 3 of each Karen Rasmussen 2 2 Cyprian Fisiy 1 1 TPDC _ _ _ 5 of each Yona S. Killagane 2 , 2 Halfani R. Halfani 1 1 Gabriel Bujulu 1 | 1 E. Mwingira 1 I 1 MEM 4 of Dec. 1997 ____________________ ________________ ___________ 5 of N ov. 2000 Patrick Rutabanzibwa 1 2 Bashir Mrindoko 1 1 Charles Omujuni 1 1 Mwara Shoo 1 1 AES j 3 of each Helen Wilson 2 1 2 David Wilson 1 1 Ocelot 2 of each Don MacPhail 2 2 Page 1 of 2  TRANSMITTAL TransCanada International Documents Resettlement Resettlement Plan Progamm & lan Addendum Distribution Programme & Plan Total Sets (December 1997) I (November 30, 2000) TCI . . 2 of Nov. 2000 Patrick Leys i 2 Songas 3 of Nov. 2000 Jim McCardle 2 _ Dorah Swai 1 | With best regards, Patrick Leys Project Coordinator Page 2 of 2  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum November 30, 2000  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum Prepared for: TPDC and the Government of the United Republic of Tanzania By: OTC 801 - 7" Avenue SW P.O. Box 2535, Station M Calgary, Alberta Canada T2P 3P7 Attn: Corey Goulet Project Director Tel. (403) 290-6048 Fax: (403) 290-7522 Prepared by OTC on behalf of TPDC & the GOT Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum TABLE OF CONTENTS Paqe EXECUTIVE SUMMARY ....1 1. BACKGROUND ...3 2. OTC WAYLEAVE ACQUISITION PROGRAM ................................................... 4 2.1. Planning .................................................... 5 2.2. Mobilization & Preparations ................................................... 6 2.2.1. Organizational Structure & Personnel ................................................... 6 2.3. Field Operations ................................................... 8 2.3.1. Front-end Team (FET) ................................................... 9 2.3.2. Payment Team (PT) ................................................... 11 2.3.3. Logistics Team (LT) ................................................... 14 2.3.4. Coordination Between Field & Dar es Salaam Office ....................................... 15 2.4. Program Completion ................................................... 15 2.5. Allocation of Resettlement Plots .................................................... 15 2.6. Program Hand-over to TPDC ................................................... 15 3. FINALISATION OF WLAP BY TPDC .................................................... 17 3.1. Additional Resettlement Requirements ............................................ 17 3.1.1. Background .................................................... 17 3.1.2. Problems Noted ................................................... 17 3.1.3. Action Taken to Address the Problems ................................................... 18 3.2. TPDC's Payment Procedures .................................................... 18 3.3. TPDC's Actions to Finalize the WLAP ................................................... 19 3.4. Current Status of WLAP ................................................... 20 3.5. Outstanding Tasks to Finalize the WLAP .......................................... 21 4. LEGAL ISSUES ..................................................... 22 4.1. Legal Process ................................................... 22 4.2. Disputes .................................................... 22 4.3. OTC's Dispute Resolution Process ................................................... 23 4.4. TPDC's Dispute Resolution Process ................................................... 25 4.5. Legal Process For Acquiring the Wayleave ......................................... 27 5. IMPACT ASSESSMENT- BROAD FRAMEWORK . . ................................................. 29 (continued ...) Prepared by OTC on behalf of TPDC & the GOT Page i of ii Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum TABLE OF CONTENTS (continued) Page 6. SOCIO-ECONOMIC ASSESSMENT PROGRAM . ................................................................ 31 6.1. Introduction ................................................................. 31 6.2. Previous Socio-economic Assessments ................................................................. 31 6.3. Objectives & Scope of Socio-economic Assessment Program . . 32 6.4. Assessment Plan - Wayleave & Resettlement Areas .................................................... 33 6.4.1. Phase 1 - Socio-economic Assessment Before Construction .......................... 33 6.4.2. Phase 2 - Monitoring During Pipeline Construction & Resettlement Infrastructure Development ................................................................. 35 6.4.3. Phase 3 - Monitoring After Construction & Resettlement Infrastructure Development ................................................................. 35 6.5. Program Management ................................................................. 36 6.5.1. Resettlement Plan Monitoring Committee ........................................................ 36 6.6. Estimated Schedule & Budget ................................................................. 37 6.6.1. Schedule - Socio-economic Reports ................................................................ 38 7. INFRASTRUCTURE PROGRAM ................................................................. 39 7.1. Introduction ................................................................. 39 7.2. Preparing the Urban Resettlement Sites ................................................................. 39 7.3. Developing the Infrastructure Proposals ................................................................. 40 7.4. Program Management ................................................................. 41 7.5. Kinyerezi Infrastructure ................................................................. 41 7.5.1. Road Improvement ................................................................. 41 7.5.2. Water Supply ................................................................. 42 7.5.3. Electricity Service ................................................................. 43 7.6. Sala Sala Infrastructure ................................................................. 43 7.6.1. Road Improvement ................................................................. 44 7.6.2. Water Supply ................................................................. 44 7.6.3. Electricity Service ................................................................. 45 7.7. Infrastructure Cost Estimate ................................................................. 46 Prepared by OTC on behalf of TPDC & the GOT Page ii of ii Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum GLOSSARY OF TERMS & ABBREVIATIONS AES - AES Sirocco Limnited (a subsidiary of The AES Corporation) CEEST - Centre for Energy, Environment, Science and Technology DCC - Dar es Salaam City Commission GOT - Government of the United Republic of Tanzania MEM - Ministry of Energy and Minerals MOL - Ministry of Lands and Human Settlements Development OTC - Ocelot & TransCanada PipeLines (A Joint Venture) Songas - A limited corporation to be established in Tanzania to operate the Songo Songo Project facilities TANESCO - Tanzania Electric Supply Company Limited TPDC - Tanzania Petroleum Development Corporation Tsh - Tanzanian Shillings TTCL - Tanzania Telecommunications Company Ltd. UCLAS - University College of Lands & Architectural Studies (formerly the Ardhi Institute) WB - The World Bank WLAP - Wayleave Acquisition Program Prepared by OTC on behalf of TPDC & the GOT Last printed 11/30/00   Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum EXECUTIVE SUMMARY The Songo Songo Gas-to-Electricity Project requires the construction of a natural gas pipeline and related facilities. This addendum updates the Government of the United Republic of Tanzania's (GOT) plan for compensating and resettling households directly affected by the overland portion of the pipeline. The addendum is designed to supplement the report entitled, Songo Songo Gas-to-Electricity Project Resettlement Programme & Plan (December 1997), which Ocelot and TransCanada (OTC) prepared on behalf of the GOT. It is intended that the original plan and the addendum be read sequentially, and that together they constitute the "Resettlement Plan" for the project. The most important consideration in planning the pipeline corridor was minimizing human resettlement. From the point where the marine pipeline comes ashore on the mainland to the outskirts of Dar es Salaam (a distance of approximately 200 kilometers), only 33 households had to be relocated. Moreover, even though the pipeline traverses much of the city of Dar es Salaam, only 155 households needed to be relocated from the pipeline corridor in the urban areas. This low number was achieved by routing the pipeline for 20 kilometers within the local power utility's wayleaves. A total of 2,945 households have been affected by the project, of which 98% have been compensated. Two resettlement sites were selected for the 155 families that required relocation from the pipeline corridor in the Dar es Salaam area - Kinyerezi in the South of Dar es Salaam and Sala Sala in the North. Both of these sites were unplanned settlements. Complete town plans have been developed and the project has surveyed both sites. The Ministry of Lands and Human Settlements Development (MOL) and the Dar es Salaam City Commission (DCC) have approved these town plans. Together, these two planned communities constitute a significant asset to the urban area of Dar es Salaam. Less intensive resettlement was required along the rural section of the wayleave. Here, displacees were those who were left with less than half an acre untouched after the creation of the gas pipeline wayleave of 60 meters. All 33 such households have already participated in the selection of alternative rural sites and have relocated. This addendum focuses on four issues: (i) the implementation of the wayleave acquisition program; (ii) the mechanism used to resolve disputes; (iii) the socio- economic assessment program designed to monitor the implementation of the resettlement process; and (iv) the infrastructure to be installed in the two resettlement areas. With respect to the acquisition of the wayleave, a list was prepared of those households affected. Compensation was calculated by determining the value of improvements to the land according to a schedule of market rates approved by the GOT. Where households were left with less than half an acre after the acquisition of Prepared by OTC on behalf of TPDC & the GOT Page 1 of 46 Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum the wayleave, they were allocated alternative plots of land. The acquisition program included specialized groups to handle community relations, property surveying, accounting, banking, and dispute resolution. OTC's Dispute Resolution Group dealt with two kinds of disputes during the compensation process: disputes between local residents and disputes with the project. To the greatest extent possible, the Dispute Resolution Group acted as mediators and at all times was sensitive to local customs and culture. All disputes among local residents were resolved peacefully and, in cases of dispute with the project, the disputing party was advised how to file a complaint in the legal system. With regard to socio-economic assessment, the program will monitor the implementation of the resettlement process. Specifically, the program will establish an independent monitoring group, gather baseline data, evaluate the data, and monitor the movement and relocation of displacees both during and after construction of the project facilities. This program is estimated to cost approximately US$116,000. Finally, this addendum addresses the installation of infrastructure in the two resettlement areas. A relatively small proportion of the 310 urban households that had to be relocated (155 from the pipeline wayleave and another 155 from within the two resettlement areas) would have experienced a reduction in the level of community infrastructure relative to their former neighbourhoods. The nature and extent of infrastructure contained in this proposal will allow new residents to enjoy a level of service that is at least equivalent to that enjoyed in their former neighbourhoods. In addition, the proposed infrastructure represents a significant improvement in the level of infrastructure for a much greater number of families already living in these communities. The cost of installing this infrastructure is estimated at approximately US$2.1 million. Consequently, the total cost of the Resettlement Plan is estimated at approximately USS2.2 million. Prepared by OTC on behalf of TPDC & the GOT Page 2 of 46 Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum 1. BACKGROUND In April 1995, the Tanzania Petroleum Development Corporation (TPDC) commissioned the University College of Lands and Architectural Studies (UCLAS), fornerly the Ardhi Institute, to survey the route that had been proposed for the Songo Songo gas pipeline and to conduct land use and socio-economic studies. Consultants from UCLAS, including land surveyors, town planners, environmental engineers, sociologists and property valuers carried out this work. UCLAS presented their final reports to TPDC in April 1996. These reports and results served as the baseline information and data. Between May 1996 and February 1997, TPDC and OTC audited UCLAS's work in order to ensure the fair and equitable treatment of all those affected by the project. In March 1997, TPDC and the Ministry of Energy and Minerals (MEM) requested that OTC provide project management services to complete the wayleave acquisition program (WLAP), and in particular, the compensation process. Starting on August 11, 1997, OTC began field operations for the compensation process and this process continued until January 31, 1998. Following the allocation of resettlement plots, responsibility for finalizing the WLAP was handed over to TPDC on May 1, 1998. At that time, 87% of the 2,945 people listed in the compensation schedules had been paid. Prepared by OTC on behalf of TPDC & the GOT Page 3 of 46 Last printed 11/30/00  Songo Songo Gas-to-Electricity Project Resettlement Plan Addendum 2. OTC WAYLEAVE ACQUISITION PROGRAM During the planning stages of the WLAP, OTC sought to combine its experience of similar right-of-way acquisition programs in Canada and elsewhere, with Tanzanian expertise and knowledge of local laws and customs. The program that was developed reflected that.approach and was the foundation for its success. The following chart, Figure 2. 1, describes the organizational structure of the program and its process. Figure 2.1 - Wayleave Acquisition Program Structure Mobilization & Preparation * Train staff r Establish teams C Arrange logistical support Field Operations