Ghana - Thermal Power Project : resettlement action plan (Vol. 1 of 2) : Resettlement action plan

* IRESETTLERIE T ACTION PLAN RESET L MENT AUDIT LESSONS THE FUTURE RP1 88 September 2003 i 10 SCANN- ~ :2ZL /F ssion No . / m N Dt ton ;~~~~~~~& i- "a-- PRESTEA-OBUASI TRANSMISSION LINE GHANA THERMAL POWER PROJECT VOLTA RIVER AUTHORITY September 2003  0 k i i I i I i i i i I i  EXECUTIVE SUMMARY The Volta River Authority (VRA) has conducted this review and audit of its resettlement operation for the Prestea - Obuasi Transmission Project in order to assess the extent to which its current policies and practices accord with international standards, specifically, the World Bank (IDA) social safeguard policy on involuntary resettlement, which is codified in Operational Directive (OD) 4.30. IDA has provided support to the Ghana Thermal Power (P-VII) Project (P000296) since project approval in Fiscal Year 1995. As one activity under this project, IDA agreed to finance the construction of a high voltage transmission line and associated facilities (hereafter, the 'line'), running from Prestea to Obuasi, in the Western, Central, and Ashanti Regions. The line, which runs for some 114.6 km between the two towns, parallels an existing line but with its own right-of-way (ROW), and was built in 2002 to enhance the power carrying capacity of transmission line in the Western part of Ghana. IDA assistance requires that the Prestea-Obuasi Transmission Line (POTL) Project follow established environmental and social safeguard policies, including IDA approval of a Resettlement Action Plan (RAP) under OD 4.30. Brief versions of such a plan were submitted for comment, but no final resettlement plan was accepted by IDA before construction began. The implementing agency, the VRA, did, however, take steps under Ghanaian law and VRA practice to provide compensation to affected people along the transmission line. This audit of the actions is undertaken by VRA to assess the adequacy of resettlement along the line and to address the question of compliance with IDA policies. The report is presented in three parts: Part I consists of the POTL Resettlement Action Plan; Part II presents the findings of the resettlement audit; and, Part IlIl synthesizes lessons from the present undertaking for future investments. This mission finds that VRA has minimized resettlement, conducted a complete and thorough inventory of assets that unavoidably must be taken, used relatively current and fair valuation procedures, and has successfully begun computerizing its record- keeping system. In short, VRA has implemented a strong data collection and analysis system for its resettlement compensation operations. At the same time, inter-agency coordination with the Land Valuation Board (LVB) and the understanding of the impacts of infrastructure development on local population could be improved. Specifically, two observations warrant mention: First, the Land Valuation Board (LVB) is legally mandated to establish compensation rates, conduct the physical asset inventory, issue a formal inventory registry to affected persons, and calculate compensation amounts. LVB has failed to fulfill its obligations in a timely and consistent manner. Asset registers are commonly approved and delivered as much as a year or two after the actual field inspection, greatly delaying compensation payments to affected persons. Also, LVB's legally required asset register (Form F) do not always accord with the Board's own physical asset inventory. Nor do the compensation calculations always accord with the Boards inventory and unit price list. As a result, determining compensation amounts and fulfilling commitments of project- affected persons become problematic.  * Second, VRA can usefully expand its focus from land acquisition per se to include the impacts of those actions on local population. In this regard, o Public information and participation can be expanded: * notification and information meetings can include not only local notables but also the community at large; * PAPs can be provided not only the inventory of assets to be taken but also the unit price list for assets and an itemized breakdown of their compensation offers; * affected people can participate more integrally in planning and implementing projects, not only identifying affected plots, but also in dispute resolution and by suggesting possible changes to the line route based on information that may not be available to the Project Implementation Unit (PIU), o A local-level grievance procedure can deal more efficiently with complaints, especially those for unanticipated construction damage. o Attention needs to be paid to the special needs of vulnerable project- affected persons, particularly the elderly and widows. o Expanded socio-economic information about project-affected persons (PAPs) would facilitate project monitoring and guide remedial measures. o Compensation payment must be better coordinated with construction schedules, so that affected persons are paid before the construction begins, not after the infrastructure has been built. In this situation, recommendations for the POTL project to conclude its compensation payment operation include: * Verify compensation amounts for each PAP because the legal inventory of assets lost (Form F) does not always accord with the actual physical count made during the field inspection. * Pay for all land taken permanently, not only house and building plots but also pylons. * Distribute unit price lists for lost assets, and provide itemized compensation offers to PAPs. * Establish local-level grievance committees to record and help resolve disputes. * Open local bank accounts to make compensation payments easier for PAPs. * Implement a systematic procedure for identifying and compensating for construction damages. Longer-term recommendations for VRA's consideration include: * Coordinate the inventory of physical assets and socio-economic survey more closely with the engineering studies and topological survey. * Institute a socio-economic data collection and monitoring system that identifies vulnerable populations and facilitates tracking the effectiveness of remedial measures. * Institute a broader program of public information, consultation, and participation, involving affected communities in planning and implementation, providing unit prices for lost assets, and instituting a system of local-level grievance committees not only for anticipated losses but also for accidental construction damage, which constitutes a large proportion of existing complaints.  * Develop a Resettlement Action Plan to guide implementation of each investment. * Institute measures to ensure that compensation payments are completed before construction activities are started on short segments of transmission lines and phase such activities on long segments. The mission thanks the management and staff of VRA for its unstinting assistance, support and collaboration at headquarters and in the field, thus greatly facilitating the conduct of this review.  I 0 I i I i i I  TABLE OF CONTENTS PART I: RESETTLEMENT ACTION PLAN I. Project Background, Project Description and Potential Impacts . ....... 1 A. Project Background ............................ 1 B. Project Description ............................ 1 C. Potential Impacts and Minimization of Resettlement ..... . . . . . . 2 II. Objectives of Resettlement Planning ...................... . 3 III. Organizational Responsibilities ........................ . 3 IV. Community Participation and Integration with Host Populations .... . . . . 4 V. Socio-economic Survey ............................. . 5 VI. Legal Framework ......... .. .. .. . .. .. . .. .. .. . .. . . 6 Constitution of the Republic of Ghana, 1992 .............. . . 6 The State Lands Act, 1962 . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Volta River Development Act, 1961 . . . . . . . . . . . . . . . . . . .7 The Lands (Statutory Wayleaves) Act, 1963 . . . . . . . . . . . . . . . . 7 The Lands (Statutory Wayleaves) Regulations, 1964 .... . .. ... . 8 VRA (Transmission Line Protection) Regulations, 1967 ..... . . . . . . 8 PNDC Proclamation Law, 1982 [Land Valuation Board] ..... . . . . . 8 The Ghana Land Policy, 1999 . . . . . . . . . . . . . . . . . . . . . . . 8 VII. Valuation and Compensation for Lost Assets . . . . . . . . . . . . . . . . 9 A. Eligibility .9 B. Inventory of Affected Assets .10 C. Valuation M ethods . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 D. Negotiation of Agreements . . . . . . . . . . . . . . . . . . . . . . . .12 E. Compensation Payment . . . . . . . . . . . . . . . . . . . . . . . . .13 VIII. Assistance to Vulnerable Populations ......... .. . .. . .. .. . 13 IX. Grievance Procedures ............................ . 14 X. Implementation Schedule ................. .... .... . 15 XI. M onitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 XII. Costs and Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16  TABLES Table 1: Number of Project Affected Person, by Type of Impact and Region . . 11 Table 2: Community Property Affected, by Type and Region . . . . . . . . . . . 11 Table 3: Implementation Schedule for Line Construction and Resettlement . . . 15 Table 4: Original POTL Compensation Budget ................. . 16 Table 5: Current POTL Compensation Budget .................. . 17 ANNEXES A. Pertinent Laws and Regulations . ..... . . . . . . . .. ..... .. . Tab A B. Publication of Public Notice of POTL Intent to Acquire ..... . . .... . Tab B C. List of PAPs and Impacts, by Village, with Compensation Amounts . . . . Tab C D. Valuation for Structures . . . . . . . . . . . . . .. . . . . . . . . . . . . Tab D E. Unit Value Rates, for Crops and Economic Trees . . . . . . .. . . . . . . Tab E F. Negotiated Compensation Sums for Community Shrines and Cemeteries . Tab F PART If: RESETTLEMENT AUDIT A. Inventory of Assets Lost .. 1 1. VRA Procedure for Inventorying Assets Lost ..... . . . . . . . . .. 1 2. Enumeration of Plots . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. Accuracy of Count of Physical Assets (Inventory) on Plots .... . . .. 2 4. Correspondence Between Physical Inventory at Field Inspection And the Legal Inventory of Affected Assets (Form F) . .. . .. . . . 3 5. Determining the Number of Project-Affected People ... . .. ... . . 4 B. Valuation Process ......... .. . .. 6 1. VRA Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. Valuation Rates ......... . .. . .. . .. . .. . .. . .. . . . 7 3. Compensation Estimates .9 C. Transparency and Negotiation of Compensation Packages .10 D. Payment of Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1. VRA Procedure .10 2. Compensation Payment to Date . . . . . . . . . . . . . . . . . . . . . . 11  E. Project Monitoring ........ .. . . ........... .. . .. . . . 12 1. Project Monitoring ........ . . . . .. . . . . . . .. . . . . . . . 12 2. Monitoring Impacts on Vulnerable Populations ..... . . . . . . . .. 13 F. Public Information and Participation .................... . 13 G. Grievance Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 H. Actions to Complete Resettlement Operations . . . . . . . . . . . . . . . . . 15 1. Establish Local-level Grievance Committees . . . . . . . . . . . . . . . . 15 2. Distribute Unit Price Lists and Provide Itemized Compensation Offers ...... . . . . . . . . . . . . . 15 3. Verify Compensation Amounts, and Update to Current Rates .... . . . 16 4. Open Local Bank Accounts ....... . . . . . . . . . . . . . . . . .. 16 5. Pay Balance of the Compensation ...... . . . . . . . . . . . . . . . 16 6. Implement a Procedure for Systematic Identification of Construction Damages . ................... . ...... 17 7. Administer a Vulnerability Questionnaire to PAPs at the time of the second compensation payment . . . . . . . . . . . . . . . . . . . . . 17 8. Implement a Land Valuation Process that Facilitates Timely Compensation .17 TABLES Table 1: Number of Project Affected Persons, by Type of Impact and Region . . 5 Table 2: Community Property Affected, by Type of Impact and Region .... . . 6 Table 3: Total Compensation Due, Payments to Date and Amounts Outstanding ...... . . . . . . . . . . . . . . . . . . 12 Table 4: Matrix of Recommended Actions, by Stage in Project Cycle ..... . . 18 ANNEXES Annex A: Independently Negotiated Unit Price List for Annual Crops and Economic Trees . . . . ... .. .. ... . . .. . .... Tab A Annex B: Compensation Payments, Total Due, Amount Paid and Amount Outstanding, by village and PAP, for Crops and Structures . . . . Tab B Annex C: Compensation Payments, by Village For Shrines and Cemeteries ................. . Tab C Annex D: Questionnaire to Determine Vulnerability of Project Affected Persons .Tab D Annex E: Grievance Registration Form .Tab E  f I I I i I Ii i I I I  PART III: LESSONS FOR THE FUTURE 1. Develop a RAP to Guide Implementation .................... 1 2. Coordinate the Physical Asset Inventory with the Topological Survey . . . . . 1 3. Record Basic Socio-economic Information ..... . . . . . . . . . . . . . . . 2 4. Implement a land valuation process that facilitates compensation . . . . 2 5. Involve Affected People Integrally ...... . . . . . . . . . . . . . . . . . . 3 6. Complete Resettlement Before Starting Infrastructure Construction .... . . . 3 7. Implement a Monitoring System . . . . . . . . . . . . . . . . . . . . . . . . . 4  I i i i i i i i I I  VRA BRIEFING August 21, 2003 Gordon Appleby Consultant PRESTEA - OBUASI TRANSMISSION LINE PROJECT GHANA THERMAL POWER (P-VII) PROJECT (P000296) VOLTA RIVER AUTHORITY Accra, Ghana RESETTLEMENT ACTION PLAN RESETTLEMENT AUDIT LESSONS FOR FUTURE INVESTMENTS TERMS OF REFERENCE o Verify the accuracy and completeness of the VRA activities carried out in the taking of properties and payment of compensation with respect to the Prestea-Obuasi 161 kV transmission project o In collaboration with VRA, define, cost and plan a schedule for any supplemental actions that may be needed to complete the land acquisition and compensation activity to IDA standards under the Operational Directive on Involuntary Resettlement. o Provide IDA with the documentation of past and recommended activities in a form that will enable IDA to accept the acquisition and compensation activities as meeting these IDA standards. More specifically, o Determine that affected persons have been fully and fairly compensated o Ensure that no claims or entitlements have been overlooked o Ascertain that documentary evidence exists in support of adequate compensation o Ascertain that Land Valuation Board values represent full replacement value for assets as defined by IDA policy o Determine that social and community infrastructure has been compensated o Determine whether valuations for structures have been finalized and, if not, set a firm timetable for finalization o Ensure that there are no outstanding disputes or complaints still unresolved o Develop an Action Plan for any shortcomings identified o Ensure that vulnerable people are provided any necessary additional assistance o Provide a full report that documents the tasks undertaken and the remedial plan, if any  2. RESETTLEMENT PLAN AND AUDIT o Determine that affected persons have been fully and fairly compensated All affected persons were identified in the field inventory undertaken between September 2001 and October 2002 (Audit, Section A). Compensation payment, however, remains incomplete. Most project affected people (PAPs), including those with structures, were paid half of their estimated compensation amount in April 2003, in anticipation of the Land Valuation Board estimates, which were delivered between May and July 2003 (RAP, Section X, Table 2). o Ensure that no claims or entitlements have been overlooked All affected persons were identified in the field inventory undertaken between September 2001 and October 2002 (Audit, Section A), and overlooked entitlements have been corrected in the interim (Audit, Section G). However, some 150 claims have since been received for construction damage. Funds are allocated to compensate for these damages, and will be paid at the same time as the final payment for lost assets. o Ascertain that documentary evidence exists in support of adequate compensation The field inspection notebooks and summary sheets of both VRA and LVB were compared for consistency in recording the extent of assets to be taken (Audit, Section A). LVB unit value rates for assets were reviewed with LVB (Audit, Section B-1) and indirectly verified in the field (Audit, Section B-1). Some discrepancies between the field inventory and the LVB legal inventory (Form F) were discovered in one village (Audit, Section A), and VRA was been asked to verify the VRAILVB field inventory with the LVB-issued Form F. Any difference between the two documents was rectified by accepting the higher inventory count of assets. This work is now complete, and compensation amounts have been finalized. Payment is anticipated to be made by October 2003. o Ascertain that Land Valuation Board values represent full replacement value for assets as defined by IDA policy LVB unit value rates for assets were reviewed with LVB (Audit, Section B-1) and indirectly verified in the field (Audit, Section B-1). One difference with IDA policy was noted: LVB values, and VRA compensates for, land associated with structures, but VRA does not pay for land taken permanently for pylons, which is inconsistent in policy. Barring practical or logistical difficulties, this difference will be corrected by the time final compensation payments are made. o Determine that social and community infrastructure has been compensated Social and community infrastructure has been inventoried (RAP, Table 1, p. 9), and is being compensated. Like PAPs, communities received half of the estimated compensation payment in April 2003, with the other half expected to be paid by October 2003. The one exception is the relocation of three shrines, which work was completed before project construction began.  o Determine whether valuations for structures have been finalized and, if not, set a firm timetable for finalization The valuation for structures has been finalized, and a timetable set for payment of the remaining compensation amounts (RAP, Annex B). This covers 19 houses and one school. o Ensure that there are no outstanding disputes or complaints still unresolved As noted above, all affected persons were identified in the field inventory undertaken between September 2001 and October 2002 (Audit, Section A), and overlooked entitlements have been corrected in the interm (Audit, Section G). However, some 150 claims have since been received for construction damage, and these will be paid at the same time as compensation for lost assets. o Develop an Action Plan for any shortcomings identified An Action Plan is provided in Section H of the Resettlement Audit. The plan calls for: o immediate verification of compensation amounts and updating of compensation amounts where necessary to accord with policy (i.e., pylons), o the opening of local bank accounts prior to the initiation of compensation payment to eliminate difficulties that PAPs have encountered in cashing compensation checks, o the establishment of local-level grievance committees by the time compensation is initiated in each place, o distribution of unit price lists for assets taken and provision of itemized compensation offers at the time compensation is effected, and o implementation of a systematic grievance procedure by the time of compensation payment in order to register compensation payment complaints, and to identify and indemnify for construction damages. o Ensure that vulnerable people are provided any necessary additional assistance The RAP (Section Vil) considers the matter of vulnerable populations. The number of vulnerable people will be small because of the nature of the project (i.e., taking a 30-meter wide strip at most) and mitigative measures put in place by VRA (i.e., clearing only the minimum necessary area in the ROW for construction activities). VRA will, however, determine the number of vulnerable people in high-risk areas (i.e., full ROW clearing of plantation crops), and put in place a program of additional assistance if necessary. In summary, the Ghana Thermal Power Project Prestea-Obuasi Transmission line has inventoried all affected property, valued that property at current rates, negotiated compensation amounts with the affected parties, and made partial payment to most of the people and communities affected. Final payment for asset loss and construction damage is expected to be made by October 2003, by or at which time VRA will institute local grievance committees as necessary, distribute the unit price list for assets, provide an itemized breakdown of compensation amounts, and conduct a vulnerability survey to identify any persons who may require additional assistance. Successful completion of all of these measures will ensure that the  POTL project complies with national laws and regulations and international standards for resettlement operations. At the same time, the experience of the Ghana Thermal Power Project Prestea- Obuasi Transmission Line project to date provide several lessons for future investments. These are: o Develop a Resettlement Action Plan to guide implementation of the operation as part of the planning process. o Coordinate topological survey for transmission lines and other infrastructure more closely with inventory of physical assets that will be lost. o Record basic socio-economic information for each affected household in order to identify vulnerable populations, monitor project impacts and assess effectiveness of remedial measures during implementation. o Involve affected people integrally in the project planning and implementation, and provide all basic information (e.g., unit price lists). o Complete resettlement before initiating investment construction. And, o Implement a monitoring system, with particular attention to vulnerable populations.  RESETTLEMENT ACTION PLAN PRESTEA - OBUASI TRANSMISSION LINE PROJECT GHANA THERMAL POWER (P-VII) PROJECT (P000296) VOLTA RIVER AUTHORITY Accra, Ghana September 2003  I I i i i i I i i i I  TABLE OF CONTENTS I. Project Background, Project Description and Potential Impacts . .. 1 A. Project Background .......................... . 1 B. Project Description ......................... . 1 C. Potential Impacts and Minimization of Resettlement ..... . . . . . 2 II. Objectives of Resettlement Planning ..................... . 3 III. Organizational Responsibilities ....................... . 3 IV. Community Participation and Integration with Host Populations. 4 V. Socio-economic Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 VI. Legal Framework .......... .. . .. .. . .. .. .. . .. .. . . 6 Constitution of the Republic of Ghana,1 992 . . . . . . . . . . . . . 6 The State Lands Act, 1962 . . . . . . . . . . . . . . . . . . . . . . 6 The Volta River Development Act, 1961 . . . . . . . . . . . . . . . 7 The Lands (Statutory Wayleaves) Act, 1963 . . . . . . . . . . . . . 7 The Lands (Statutory Wayleaves) Regulations, 1964 . . . . . . . . 8 VRA (Transmission Line Protection) Regulations, 1967 .... . . . 8 PNDC Proclamation Law, 1982 [Land Valuation Board] .... . . 8 The Ghana Land Policy, 1999 . . . . . . . . . . . . . . . . . . . . 8 VII. Valuation and Compensation for Lost Assets .... . . ... . . . . . .. 9 A. Eligibility .................... 9 B. Inventory of Affected Assets .................... 10 C. Valuation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 D. Negotiation of Agreements .................... 12 E. Compensation Payment . . . . . . . . . . . . . . . . . . . . . . . . .13 Vil. Assistance to Vulnerable Populations .13 IX. Grievance Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 X. Implementation Schedule .15 Xl. Monitoring .16 XIl. Costs and Budget .16   TABLES Table 1: Number of Project Affected Person, by Type of Impact and Region . . 11 Table 2: Community Property Affected, by Type and Region . . . . . . . . . . . 11 Table 3: Implementation Schedule for Line Construction and Resettlement . . . 15 Table 4: Original POTL Compensation Budget ................. . 16 Table 5: Current POTL Compensation Budget .................. . 17 ANNEXES A. Pertinent Laws and Regulations ...................... . Tab A B. Publication of Public Notice of POTL Intent to Acquire . . . . ..... . . Tab B C. List of PAPs and Impacts, by Village, with Compensation Amounts . . . . Tab C D. Valuation for Structures . . . . . . . . . . . . . .. . . . . . . . . . . . . Tab D E. Unit Value Rates, for Crops and Economic Trees . . . . . . .. . . . . . . Tab E F. Negotiated Compehsation Sums for Comnmunity Shrines and Cemeteries . Tab F iii~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  Al  1. PROJECT BACKGROUND, PROJECT DESCRIPTION AND POTENTIAL IMPACTS A. Project Background The World Bank (IDA) has provided support to the Ghana Thermal Power (P-VII) Project (P000296) since project approval in Fiscal Year 1995. As one activity under this project, IDA agreed to finance the construction of a high voltage transmission line and associated facilities, such as access roads, (hereafter, the 'line'), running from Prestea to Obuasi, in the Western, Central, and Ashanti Regions. IDA assistance requires that the Prestea-Obuasi Transmission Line project (POTL) follow established environmental and social safeguard policies, including IDA approval of a Resettlement Action Plan (RAP) under Operational Directive (OD) 4.30'. Brief versions of such a plan were submitted for comment, but no final resettlement plan was accepted by IDA before construction began. The implementing agency, the VRA, did, however, take steps under Ghanaian law and VRA practice to provide compensation to affected people along the transmission line. This resettlement plan and audit of the POTL project are therefore undertaken by VRA to assess the adequacy of resettlement planning and implementation in terms of IDA policies, and, as necessary, to propose additional actions so that the POTL operation is in compliance with those policies, specifically, the IDA social safeguard policy on involuntary resettlement, OD 4.30. B. Project Description The Prestea - Obuasi Transmission Line project erected a 114.6114.6 km long, 161 kV line that parallels an existing line, but has its own right-of-way (ROW). POTL involved erecting pylons approximately every 300 meters along the route. This work required access roads, where these did not already exist, as well as staging areas to erect the pylons and string the wire. POTL did not require additional land for substations because the two termini for this line already operate and both had sufficient land for the extension of their facilities. In Prestea, the VRA substation is on the outskirts of town, and the additional facilities were built on land owned by VRA that is adjacent to the existing substation. In Obuasi, the substation is on land held by the Ashanti Goldfields Company, Ltd., but, again, the existing power station there simply had to be extended on adjacent land already available to VRA. The line was built in 2002, and energized in April 2003, to enhance the power carrying capacity of the transmission network in the Western part of Ghana. 'OD 4.30 was superseded by Operational Policy 4.12 in December 2002. Nonetheless, OD 4.30 is the applicable policy here because this project was approved in FY 95, well before OP 4.12 became elective. There are few substantive differences between OD 4.30 and OP 4.12 with regard to the project iiinder consideration.  C. Potential Impacts and Minimization of Resettlement Building POTL required clearing in the ROW, erection of pylons, new access roads and staging areas to string line. All of these activities require land, either permanently or temporarily, and therefore create potential adverse impacts on local populations At the same time, the amount of land taken in any area is at most a 30-meter wide strip, so that the project would affect relatively few people in any locality and most affected people would lose only a portion of their agricultural lands. In other words, for the most part, the potential impacts of the project would be relatively limited, although the impacts could be significant for any particular individual. As planned and executed, the line affected 669 households in 47 communities, which, figuring six people per rural family, would represent approximately 4,000 project-affected persons (PAPs) in total. Most project-affected families - over 95 percent - lost agricultural production, either temporarily (e.g., field crops) or permanently (e.g., palm oil and other tall tree crops). A small number of structures were also affected -- 19 houses, one school; three shrines had to be relocated outside of the ROW; and, four cemeteries were affected by removal of tall trees. In addition some 160 people have lodged complaints of unanticipated construction damage, mostly due to access roads; many of these people are PAPs who also lost crops within the ROW. VRA instituted several measures to minimize the extent of resettlement impact. First, near populated centers, VRA rerouted the new line away from the existing line in order to avoid residences and other structures. For example, in Bogoso, rerouting the line away from the town reduced the number of affected structures from 30 residences that would have had to be removed to just one in another village near the town. Similarly, the line at Dunkwa was also diverted away from the town in order to similarly reduce resettlement impact. Second, VRA instructed its contractor to clear as little productive land in the ROW as possible for its activities. In hilly areas where the line runs near the highway, this measure meant that the contractor could access the site for pylon construction with minimal damage to crops, and did not have to clear the entire ROW between pylons. In other areas, where the contractor needed to move between pylons, VRA limited the extent of clearing to the minimum necessary for efficient construction. Thus, in many areas, a strip between 5 and 10 meters wide (rather than the entire 30 meter ROW) was cleared by the contractor for access to pylon sites, although tall trees within the ROW were cut also down. Third, VRA permits cultivation of low crops, including some tree crops, under the transmission line in order to limit permanent crop loss to the irreducible minimum. Under this measure, all annual crops and any low tree crops may be cultivated within the ROW once the line has been erected. Effectively, this measure means that only coconut and tall trees must be removed from the ROW; improved oil palm and mature cacao, which reach a height of about 15 feet, may remain in at least the 10 meters on either side of the central transmission line corridor.  II. OBJECTIVES OF RESETTLEMENT PLANNING As a good corporate citizen striving to foment development and reduce poverty, VRA subscribes as a matter of policy and practice to the following resettlement objectives: * To conceive of and execute resettlement activities in a socially responsible manner as sustainable development programs, providing sufficient resources to enable persons displaced by the project to share in project benefits; * To consider involuntary resettlement as an integral part of project design, and deal with resettlement issues from the earliest stages of project preparation; * To avoid land acquisition and involuntary resettlement wherever feasible, and to minimize land acquisition and involuntary resettlement wherever such is unavoidable; * To consult with project-affected persons (PAPs) in a meaningful manner, and to provide opportunity for their participation in the planning and execution of resettlement programs; * To assist PAPs in proportion to impact, recognizing the special needs of vulnerable populations; 0 To compensate PAPs fully and fairly for all assets lost permanently or temporarily, which means timely payment of full replacement value prior to construction; * To ensure that all PAPs who lose residences or businesses are provided acceptable alternative accommodations before demolition of the structures and construction of the infrastructure; * To ensure that PAPs who lose income-generating resources are assisted in their efforts to improve their livelihoods and standards of living or at least restore them, in real terms, to pre-project levels; These policy objectives apply to all direct economic and social impacts that result from the project and that are caused by the involuntary taking of land that results in relocation or loss of shelter, loss of assets or access to assets, or the loss of income sources or means of livelihood, whether or not the affected persons must move to another location. Further, these policy objectives apply to all components of the project that result in involuntary resettlement, regardless of the source of financing. Ill. ORGANIZATIONAL RESPONSIBILITIES In accord with the Volta River Development Act, 1961, The Volta River Authority is responsible for the acquisition of land, including compensation of landowners, necessary for performance of its mandated activities. In addition, the Land Valuation Board (LVB) is legally responsible for issuing inventories of assets to be taken (the Form F), establishing compensation rates and determining compensation amounts for each PAP. For this reason, VRA collaborates with LVB in the asset inventory and verifies the LVB determination of compensation amounts. Within VRA, the Engineering Department plans the alignment of the transmission line and surveys the prospective line. About the same time, the Environment Department commissions an Environmental Impact Assessment (EIA) to identify critical environmental and social issues.  Once the topological survey has been completed, the Engineering Department provides the Real Estate department (VRANRE) a copy of the topographical map. The Real Estate department then conducts a field survey to inventory the plots and structures that will be affected by the proposed alignment and infrastructure. VRA/RE conducts this inventory in collaboration with regional representatives of the Land Valuation Board (LVB) and the affected persons. The VRA/RE and LVB inventories are reconciled, and, in principle, LVB issues to each PAP a legal registry of assets lost (Form F). The assets affected are then valued by both VRA and LVB on the basis of the LVB unit cost list, so that VRA can verify the LVB determinations. Once VRA and LVB agree on compensation amounts, VRAIRE issues an offer of compensation to each affected person. VRA/RE then provides the individual agreements to the VRA Finance Department, which writes the cheques on the corporate account. At scheduled community meetings, VRA/RE distributes the cheques to the PAPs in the presence of local authorities, and collects the Form F from each PAP once compensation has been completed. VRA/RE works closely with local opinion leaders in the affected communities throughout this process. VRA/RE or its contractors contact local leaders to inform them of the proposed investment, maintain contact with these leaders during the physical asset inventory and valuation, rely on the local leaders for feedback on PAP grievances and unanticipated developments, and involve the leaders in the negotiation and compensation payment process. In addition, VRA/RE and project construction staff maintain close personal contact with PAPs, listening to concerns, explaining procedures, and recording grievances, among other matters. IV. COMMUNITY PARTICIPATION AND INTEGRATION WITH HOST POPULATIONS VRA and its contractors inform the local populations on the POTL about each of the various steps of the project. Once the official notification of intent to acquire land is published in the newspapers, VRA surveyors first contact local officials in each locality to inform them of the project and to request permission to enter village lands for the topographical survey of the line. Subsequently, VRA enumerators contact village leaders in the communities along the line, including Chiefs and their Elders, District Chief Executives, District Assemblymen, Unit and Town Development Committee members, in order to solicit their support and cooperation for the study. In the POTL project, appointments were made with all communities except Prestea and Bogoso, which presented particular issues, in order to collect relevant information about the communities and the individuals affected for the Environmental Impact Assessment (EIA). Finally, VRA/RE representatives contact the notables in each locality to organize community meetings with the PAPs. On these occasions, the VRA and LVB representatives walk the transmission line with the PAPs in order to identify ownership of each structure and agricultural plot affected and, together, to inventory the structures and crops for valuation.  Once the inventory of physical assets affected has been compiled and checked by VRA/RE and LVB, the agency representatives attend a meeting in each locality to verify and agree upon the extent of impact on each PAP. At these meetings, the VRA representative reads the inventory of affected assets to each PAP who then signs to indicate his or her agreement with the inventory. In the instance of a disputed inventory, the PAP may request a re-assessment or may, in exceptional instances, commission an independent assessment. In those instances where residences and other structures are affected, VRA enlists- the assistance of local notables to assist in the identification of acceptable, alternative plots, if necessary. All residential relocation takes place within the PAP's current town or village, and usually requires moving back a relatively few meters out of the ROW. PAPs can and do, however, chose to purchase replacement plots in more central locations within their communities. For this reason, the question of integration with a host population does not arise in the POTL project because all physical relocation occurs within the PAPs' current communities. V. SOCIO-ECONOMIC SURVEY In order to assess the nature and extent of impact on local populations generally, VRA undertook an analysis of the socio-cultural, economic, and demographic situation in the project area as part of its Environmental Impact Assessment. The POTL EIA also examined the vulnerability of PAPs and their families as a group in order to provide a general measure of project social risk. The purpose of this part of the study was to help identify mitigation measures necessary to redress possible negative impacts of the project (EIA, p. 1). The social survey under the EIA recorded basic information about the population of each community (compiled by district), its social infrastructure, and its economic activities (e.g,, agriculture, livestock, manufacturing, mining). The basic finding of the EIA social study is that outside several mining communities and administrative towns, the population is essentially agricultural, and is engaged in the cultivation of both food crops (cassava, plantain, cocoyam) and cash crops (oil palm, citrus, cocoa, coffee, and kola nuts). Many villagers keep some livestock (cattle, poultry, pigs), and some process agricultural produce (e.g., cassava, oil kernels). In some localities, artisanal mining is important to some households. The EIA social survey also interviewed the 303 affected persons identified at that time. The vast majority of those affected (93%) were primarily farmers, with the others engaged as teachers, artisans, traders, public administration. Nearly all those affected (over 95%) would lose food or cash crops or both; very few (1.3% at that time) would lose residential structures, while 1 percent of the respondents were unsure of how they would be affected. Because of the importance of agricultural impact, the EIA looked into the land tenure situation. Nearly half the PAPs (48.2%) own their own lands, while another quarter (24.4%) have lands on loan 'to be used freely' (p. 17), usually from parents or spouse. Nonetheless, nearly a fifth of all cultivators (17.2%) till land through sharecropping arrangements with the land owners, while another 5 percent have land loans although the arrangement was unspecified.  From a social perspective, approximately 10 percent of this group were then over 65 years of age, and nearly a third of the landowners were women (86 of 299). The EIA found a high dependency ratio: the majority of the respondents (68.3%) have from 4 to 9 dependents, and about one-fifth (18.4%) have between 10 and 18 dependents. "In all, the dependency ratio is about 15 dependants to one affected person" (p. 16). In other words, there was a high potential rate of vulnerability among the affected population. The EIA survey also inquired into PAP concems. While the majority of respondents (60%) expected some crop loss, most (90%) expected adequate compensation, although a quarter of those canvassed expressed a concern that compensation payment could be delayed (p. 15). VI. LEGAL FRAMEWORK The Constitution of the ReDublic of Ghana, 1992 (Article 20), establishes that no property "shall be compulsorily taken possession of or acquired by the State" unless it is, among various purposes, 'to promote the public benefit" (Clause 1). "Compulsory acquisition of property by the State shall only be made under a law which makes provision for (a) the prompt payment of fair and adequate compensation; and (b) a right of access to the High Court by any person who has an interest in or right over the property...: (Clause 2). Further, "where a compulsory acquisition or possession of land effected by the State in accordance with clause (1) of this article involves displacement of any inhabitants, the State shall resettle the displaced inhabitants on suitable alternative land with due regard for their economic well-being and social and cultural values" (Clause 3). If property acquired in the public interest is not used for that purposed, the original owner is given first option to purchase the property at a price equivalent to the original compensation amount (Clause 6). The State Lands Act. 1962 vests in the President the authority to acquire land for the public good. The President "may, by executive instrument, declare any land specified in the instrument ... to be land required in the public interest" (Sect. 1-1). A copy of the instrument shall "(a) be served personally on any person having an interest in the land; or (b) be left with any person in occupation of the land; and (c) be affixed at a convenient place on the land; and (d) be published on three consecutive occasions in a newspaper circulating in the district where the land is situated" (Sect. 2). "On the publication of an instrument..., the land shall, without any further assurance than this subsection, vest in the President on behalf of the Republic, free from any encumbrance whatsoever" (Sect. 1-3). The State Lands Act 1962 theoretically places responsibility for registering a claim on the party affected. "Any person claiming a right or having an interest in any land subject to an instrument made under section 1 of this Act or whose right or interest in any such land is affected in any manner shall, within three months from the date of the publication of the instrument.. .submit in writing to the Minister, (a) particulars of his claim or interest in the land; (b) the manner in which his claim or interest has been affected by the instrument; (c) the extent of any damage done; (d) the amount of compensation claimed and the basis for the calculation of the compensation, and the Minister may, having regard to the market value or the replacement value of the land or the cost of disturbance or any other damage suffered thereby, pay compensation in respect of that land or make an offer of land of equivalent value" (Section. 4-1).  'According to the State Lands Act, 1962, "where there is a dispute as to the right or interest claimed by reason of conflicting claims or interests, or any person is not satisfied with the compensation assessed by the Minister, the Minister may refer the matter to the Tribunal" (Section 4-2). The Tribunal is established by the President, in consultation with the Chief Justice (Sect. 3). [Note: the 1 992Constitution, which supersedes this earlier law, provides for juridical resolution of compensation disputes. The Tribunal no longer functions.] The State Lands Act, 1962 defines the terms cost of disturbance, market value, replacement value and other damage (Sect. 7). "'Cost of disturbance' means the reasonable expenses incidental to any necessary change of residence or place of business by any person having a right or interest in the land." "'Market value' means the sum of money which the land might have been expected to realize if sold in the open market by a willing seller at the time of the declaration made under section 1 of this Act." "'Replacement value' means the value of the land where there is no demand or market for the land by reason of the situation or of the purpose for which the land was devoted at the time of the declaration made under section 1 of this Act, and shall be the amount required for reasonable re- instatement equivalent to the condition of the land at the date of the said declaration." Finally, "'other damage' means damage sustained by any person having a right or interest in the land or in adjoining land at the date of the declaration made under section 1 of this Act, by reason of severance from or injurious affection to any adjoining land." The Volta River Development Act. 1961, establishes the Volta River Authority (VRA) and defines its functions and responsibilities. Part 4, Section 17 (2) (d) of the Act authorizes the VRA to acquire land necessary "for the proper discharge of the Authority's functions." The Act (Sect. 28 (a)) further specifies, in relation to lands acquired for Akosombo Dam, that 'the market value of any property so acquired shall be the amount which that property might have been expected to realize if sold in the open market by a willing seller to a willing buyer" as of the date March 6, 1957. The Lands (Statutory Wavleaves) Act. 1963, provides for entry on any land for the purpose of the construction, installation and maintenance of works of public utility, and for the creation of rights of way for such works. The owner/occupier of the land must be formally notified at least a week in advance of the intent to enter, and be given at least 24 hours notice before actual entry. (An authorized person may enter at any time for the purpose of inspecting, maintaining, replacing or removing any specified works [Section 5].) Any damage due to entry must be compensated in accord with the procedures established by the Minister (Sect. 6-1) unless the land is restored or replaced. (In the case of highways, no compensation shall be paid, unless the land taken is more than one fifth of the total holdings of an affected person; Section 6-3(b).) Where a right of way must be established in the public interest, the President may declare the land to be subject to such statutory wayleave. On publication of a wayleave instrument specifying the area required, and without further assurance, the land shall be deemed to be subject to wayleave. Compensation is then determined and paid, with the right of appeal to a Tribunal established by the President, in parallel with the Lands Act, 1962. (Again, appeal to the Tribunal has, under the 1992 Constitution, been replaced by appeal to the courts.)  The Lands (Statutory Wayleaves) Regulations. 1964, restates the principles of the Lands (Statutory Wayleaves) Act of 1963, and establishes provisions for Wayleave Selection Committees to determine the optimal routing and to ensure that the selected wayleaves are consistent with town and country planning. Any claim for compensation must be made "not later than six weeks after" formal notification, and must be made on the requisite form (Section 8). Any dispute over compensation can be submitted to the Tribunal. "The first hearing of any matter referred to the Tribunal shall be held not later than six weeks after the date on which the matter was so referred, and the Tribunal shall give notice of any such hearing to all parties thereto in the appropriate form... Subsequent hearings by the Tribunal shall be on such dates and at such times as the Tribunal may from time to time direct" (Sect. 1 1). The complainant has the right to be represented by a lawyer of his or her choosing (Section 12). Volta River Authority (Transmission Line Protection) Regulations. 1967, states that it is forbidden "to place, drive, tow, pull or carry any crane, jig, boom, or any other object, under, over or near the transmission line, unless the minimum distance from the conductors or any of them of such object is not less than eighteen feet" (Section 1 [fI). VRA has interpreted this section to extent to any object, including economic trees. The VRA does have authority (Section 1 [g]) to provide written consent to permit construction of "any building or structure or carry on any kind of cultivation, farming, or farming activity within the right of way"; such activity is illegal without such consent. Provisional National Defence Council (Establishment) Proclamation (Supolementarv and Consequential Provisions) Law .1982 (Section 43[1]) establishes a Land Valuation Board "responsible for -- "(a) determining all matters of compensation for land acquired by the government, any organ of government or public corporation on whatever terms; "(b) preparing the valuation list for property rating purposes;"... "(h) advising all organs of government on all matters of valuation of interests in immovable property;"... "(k) collating in a register all valuations conducted by the Board and collecting information relating to land values throughout the country; "(I) publishing in periodic official bulletins information regarding land values throughout the country and any such information regarding its valuations as it deems fit in the national interest; "(mi) developing a recommended code of valuation to regulate the procedures and practices for the rating of immovable properties." "Any public corporation in existence before the coming into force of the Proclamation shall continue to operate under the enactment by which it was established," unless the Council otherwise directs (Section 441l]). Finally, The Ghana Land Policy. 1999, provides guidelines and policy actions for land use (e.g., agriculture, forestry, extractive industry, settlement, infrastructure). These guidelines are aimed at enhancing conservation and environmental quality, thus preserving options for present and future generations. Key objectives of the Land Policy, which are relevant to POTL project, include: protection of the rights of landowners, ensuring payment, within a reasonable time, of fair and adequate compensation for land acquired; and promoting public awareness at all levels and community participation in sustainable land management.  Annex A contains copies of various of the pertinent legislation that constitutes the legal framework for resettlement operations. Annex B presents the notification of intent to acquire that was published for POTL in newspapers that circulate locally. VIl. VALUATION AND COMPENSATION FOR LOST ASSETS A. Eligibility All persons who are directly affected economically by the loss of residence, business, land, or economic livelihood are eligible for compensation in proportion to the extent of the loss, taking into account any special requirements of vulnerable populations. Land is assessed at local market value. By law (State Lands Act 1962), land is valued either as the "sum of money which the land might have been expected to realize if sold in the open market" or "the amount required for reasonable re- instatement equivalent to the condition of the land" at the date of the notification to acquire is published. In POTL, land compensation is paid for plots with houses or community structures. Agricultural land is not reimbursed because farmers can cultivate the area in subsequent years. Because VRA permits farmers to cultivate in the ROW plots once the transmission line is built, agricultural crops are compensation for loss and damage, but not for land. Agricultural loss covers both all economic trees within the ROW and all annual crops. Landowners who cultivate the affected plot receive compensation for all economic trees and all annual crops within the ROW whether or not the entire ROW is cleared. When landowners and tenants or sharecroppers both have claims to the affected plot, each receives the portion of the crop compensation payment to which each is entitled under the sharecropping agreement, usually one-to-one. (Economic trees that predate the tenancy agreement are credited to the landowner.) Women, who constitute an appreciable number of the landowners, receive compensation in their own names, just like men. Residential loss covers both the house plot and all structures thereon. If only part of a plot is taken, compensation is limited to those structures in the affected part of the plot if the remainder of the plot is habitable and there is room to rebuild the affected structure or structures. If it is not possible to replace the affected structures on the existing plot in a manner acceptable to the residents, the entire plot is acquired, just as if the entire plot had been affected. If community property is affected, the owner or responsible authority is compensated for the loss. Specifically, in the case of a school, compensation is paid either to the community if they built and maintain the structure or to the Ministry of Education if they built and maintain the facility. In the case of a cemetery, compensation is paid to the community, and includes funds for locally appropriate rites. In the case of a shrine, the project consults the local chief and elders in order to determine the appropriate compensation necessary to conduct the rites necessary to relocate the religious property.  B. Inventory of Affected Assets The VRA undertakes a field inventory of all affected assets, in collaboration with both the Land Valuation Board and the villagers concerned. In order to organize the asset inventory, VRA/RE holds meetings in each affected village with local notables (e.g., chief, elders, opinion leaders) to inform them of initiative. Subsequently, VRAIRE informs village authorities a day or two before the asset inventory will be carried out so that they can alert villagers to plan to participate in the inventory. On the day designated, the VRAIRE representative, the regional LVB representative and the villagers together carry out physical asset inventory. This involves walking the line, and noting for every plot the area affected if in food crops and/or counting the number of trees for tree crops. Tree counts are estimated from area planted, using assumed spacing distances, in areas with high, dense weeds. Where plots have structures, the inventory records the size of the plot and, for each structure, the external dimensions of the structure, the construction materials of each (floor, walls, ceiling, and roof, as well as doors and windows), and the general condition of the structure. The inventory also records any infrastructure (e.g., animal pens, borehole) along with necessary descriptive information. Upon completion of physical asset inventory, each field surveyor recopies his field notes into a book. The VRA and LVB field surveyors compare notes and rectify discrepancies. VRA enters the information into a master file in Excel; data entry is double-checked for accuracy. Subsequently, the VRA and LVB surveyors compare their separate summary compilations and reconcile any discrepancies. The inventory of physical assets is complete in that every plot is inventoried. The VRA practice of going out with LVB technicians and the villagers themselves helps ensure that the plot inventory records every parcel affected, and that the counts are accurate and verified in the field. Certain details about a plot, such as the name of the owner, any sharecropping arrangement, the precise number and type of trees may have to be revised after consultation with the PAPs. Not all villagers are available the day the asset inventory is undertaken, so some plots must be recorded as 'unknown' ownership. Sometirmes the landowner or cultivator designates a representative to attend the physical inventory, which can give rise to disputes over asset counts with some owners. (The field notebooks do not usually record whether the participating villager is the land owner, the cultivator, or a representative of either the owner or cultivator.) VRA strives to resolve such situations as quickly and amicably as possible. But in the POTL project, there was no instance of a cultivated plot or house site that was overlooked during the physical inventory. Table 1 summarizes the findings of the asset inventory, by type of impact for each region. (Annex C presents the list of individual PAPs, their losses and compensation, by village and region.) Table 2 similarly summarizes the losses of community property.  Table 1: Number of Project Affected Households*, By Type of Impact and Region Western Central Ashanti Total Region Region Region Field Crops 284 139 227 650 Houses 7 8 4 19 Total 291 147 231 669 * The number of individuals affected may be estimated by multiply the number of households by six (6), which is the average rural family size. Table 2: Community Property Affected, By Type and Region Western Central Region Ashanti Total Region Region School 0 1 0 1 Shrines 2 1 0 3 Cemeteries 1 3 0 4 Total 3 5 0 8 C. Valuation Methods The VRA Real Estate department uses the Land Valuation Board (LVB) unit prices to determine the compensation for agricultural crops and residential properties. (See Annex D for the unit rates for crops and economic trees and for structures.)  LVB values land, structures, and crops (annual crops and economic trees) separately. With regard to land, LVB consults with the Land Commission on recent land sales of titled properties. In rural areas, where land is held under customary tenure, LVB investigates the current market price of land, and verifies this price information with indirect measures, such as informal payments to chiefs at the time of the land transfer. For structures, LVB determines replacement cost based on the current price of building materials. In this method, calculating the amount of material necessary for structures of different types provides a unit value per square foot that is multiplied by the area of the structure to be taken in order to establish the value of each structure. In rural areas, these estimated amounts are verified with local housing prices. (Annex D presents the costing of the 20 structures affected -- 19 residences and one school.) LVB uses one of two methods to calculate crop values. For large estates and commercial plantations, LVB uses the 'investment method,' which essentially tailors the compensation to the productive life of the assets to be taken in that estates with younger productive trees receive proportionately more than estates with older productive trees. For small-hold takings, LVB uses a tree count and multiplies the count by a standard unit value for that type of tree. In both methods, calculation of the unit value is based on production techniques, yield and farmgate price information collected regionally by the Ministry of Agriculture. (Annex E presents the unit price list for crops and economic trees.) LVB takes two other considerations into account in determining compensation. An amount of up to 10 percent may be added to cover legitimate costs incurred by the PAP in locating replacement land or structures (the disturbance allowance). In addition, LVB adds an average of 20 percent to crop values in order to account for inflationary price increases in the year or two that may pass between the time of the site inspection and issuance of the LVB compensation amounts. LVB maintains current valuation rates that represent actual market price at the time of payment. VRA concurs in this view, that the Board and the Authority use realistic rates in computing compensation amounts. If at the time of payment, the current LVB rates are found to be uneconomic or out-of-date, the Authority will, in consultation with all concerned government agencies, generate fair rates on the basis of current prices. Finally, for sensitive lands, such as shrines and communities, VRA negotiates with the community to determine the sum necessary for propitiatory rites. (Annex F presents the negotiate sums to relocate the shrines affected and to cut tall trees in cemeteries within the ROW.) D. Negotiation of Agreements Negotiation of agreements between the project authority and project-affected persons is effectively limited to discussion of the physical asset inventory because unit price information is not disclosed publicly. Once the physical assets affected are inventoried and valued, VRA/RE, in collaboration with the LVB, determines its offer to each affected person. VRA writes a letter of offer to each claimant, and LVB prepares a Declaration Form (Form F) for each PAP. The Form F, which lists the assets affected, is delivered to the PAPs at a  village meeting convened in their localities. The inventory of assets lost is given to the PAP (or, read to an illiterate PAP, in a language he/she understands), who signs the Form F to signify his or her agreement with the physical inventory. Due to LVB stipulations, the unit price list for lost assets is not provided to PAPs. VRAIRE does provide the unit price list to local notables on an informal basis. And, a global estimate of the compensation amount may be provided to the PAPs, especially when, as happened in POTL, compensation payment is made in more than one installment. E. Compensation Payment Compensation is paid by VRA to each PAP at a meeting in each of the affected villages. The VRAIRE representative provides the list of affected assets and the global compensation amount to the PAP (or reads it to the PAP if illiterate) to ensure that there is continued agreement on the compensation sum. If so, VRA delivers a cheque drawn in that sum on the corporate account to the PAP, who signs the relevant papers signifying receipt of compensation in part or in full, as is the case. VRA then collects the Form F, and the case is closed, unless a grievance has been registered. Vil. Assistance to Vulnerable Populations Vulnerable groups at particular risk of impoverishment are the landless and semi- landless, the elderly, and households headed by females. The resettlement plan therefore includes land allocation or culturally acceptable alternatives to protect the livelihood and living standards of these people. VRA collects complete information for the physical asset inventory only. The focus on the physical asset inventory without full complementary socio-economic information on each affected family makes it difficult to assess the proportion of vulnerable families in the affected population. While the number of vulnerable people affected by POTL is likely to be small, such people do reside in many communities even though the numbers of people in each category have not been specifically studied. The POTL Environmental Impact Assessment (Section 6.3, table 3, p. 13) indicates that 25 percent of the population in the major project districts is 55 years of age or older (males: 24.4%; females, 26.8%). The EIA (Section 6.3, Arrangements for Land Use Table, p. 16) also indicates that a significant amount of sharecropping occurs in the project area: while almost half (48.2%) of the population own their own land and another quarter (24.4%) cultivate land on loan to be used freely, almost a fifth of the farmers (17.2%) share the market proceeds with the landlord after harvest while a few (2.6%) share the farm produce. Finally, there is a high dependency ratio in the region: "About 2 out of every 10 respondents (18.4%) have a number of dependents between 10 and 18 persons" (Section 6.3, p. 16). As the EIA notes, 'with such a high dependency ratio among the affected communities, the impact of the project on families/households and the entire community will be greatly felt if appropriate measures are not put in place before implementation of the project" (p. 16). The POTL project has put in place measures that help mitigate such impacts. These measures are more effective for some crops than others. Specifically, the impact on annual crops (e.g., cassava, maize) is temporary. These crops may be lost - and  compensated-during the year of line construction, but these fields can be planted without problem in subsequent years. By contrast, some tree crops cannot continue to be planted within the ROW once the transmission line has been built. For most citrus (e.g., lime, orange) and fruit trees (e.g., guava, mango), this is not a major economic issue in that no PAP has more than one or two such trees within the ROW, so that it should be possible to replant these trees elsewhere. (The importance of these trees may lie more in their contribution to family nutrition than in their contribution to family income.) The major impact is likely to fall on tall plantation trees, particularly coconut, possibly cocoa (if young trees are shaded by tall trees), and oil palm (which reaches only 15 feet in height, so it could, possibly, continue to be cultivated under the line). IX. GRIEVANCE PROCEDURES Disputes over compensation and resettlement measures may be raised by PAPs informally with local notables or VRA staff or, failing resolution at the informal community level, formally with the Commission for Human Rights and Administrative Justice (CHRAJ) and, ultimately, the courts. Most questions involve disputes over the physical inventory counts. Although the field -counts are generally accurate, it may be that some economic trees were overlooked during the field count. Such oversights are typically brought to the attention of the VRA staff, either the representative from the Real Estate Department or from the project engineering staff. The VRA representative verifies the validity of the complaint, and corrects the official count accordingly. In the POTL project, disputes over unit prices have not arisen, in large part because PAPs have not been provided the unit price list. Such disputes have arisen in other projects, usually when a transmission line crosses a commercial plantation. In such instances, the plantation owner engages an independent valuer to assess the value of the crops affected and submits the independent assessment to VRA for its consideration. The majority of such cases center on the age and cultural quality of the affected crop. Average unit prices are usually acceptable when the plantation is older and yields are declining; these unit prices may be disputed, however, when the plantation is reaching maturity and yields are increasing. VRA, in consultation with the LVB, decides each instance on a case-by-case basis. PAPs may raise issues formally when informal mechanisms fail to redress the concern. In one instance in the POTL project, a small group of farmers has lodged a complaint with the Commission on Human Rights and Administrative Justice over the delay in compensation and over the difficulty of cashing the cheques distributed earlier for partial compensation. If the issue cannot be resolved at this level, the aggrieved party has, in theory, access to redress through the judicial system, although in fact judicial resolution is expensive and time-consuming.  X. IMPLEMENTATION SCHEDULE The timing of resettlement should be coordinated with the implementation of the main investment component of the project. Ideally, resettlement activities - land acquisition, relocation of residences and businesses, as well as initiation of economic rehabilitation activities, when required - are completed before construction begins in an area so that the project-affected people are not further disadvantaged. In the POTL project, engineering studies and construction preceded most resettlement activities. The implementation schedule for the project is given in Table 3. Table 3: Implementation Schedule for Line Construction and Resettlement Western Region Central Region Ashanti Region Line Construction * Notice of Construction (Notice in national dailies July 01 July 01 July 01 and Gazette; village meetings) .- . Clearing ROW Oct 01(Prestea - Bogoso) 2002 2002 * Line Construction 2002/3 2002/3 2002/3 * Energize Line April 03 April 03 April 03 Resettlement Activity * Physical Asset Inventory Sept. 01 - June 02 June 02 - Sept. 02 Sept. 02 - Oct 02 * Form F (Inventory) Delivered to PAPs Jan. 03 Feb. 03 March 03 * Valuation, VRA June-July 02 Nov. 02 Nov. 02 . Valuation, LVB May 03 May 03 July 03 * Initial Compensation End April 03 Mid-April 03 Early April 03 Payment Made * Final Compensation Oct. 03 (est.) Oct. 03 (est.) Oct. 03 (est.) Payment to be Made ___  XI. MONITORING Arrangements for monitoring implementation of resettlement and for incorporating monitoring results into management decisions will be developed during project preparation and used during supervision. Monitoring provides both a waming system for project managers and a channel for the resettlers to make known their needs and their reactions to resettlement implementation. Monitoring and evaluation units should be adequately funded and staffed by specialists in resettlement. In-house monitoring by the implementing agency may need to be supplemented by independent monitors to ensure complete, objective resettlement. Projects with relatively limited resettlement impacts commonly institute an in-house monitoring system within the project agency. In the case of POTL, VRA relies upon its staff in the Real Estate and Engineering Departments, to keep track of land acquisition, compensation, and grievances. VRAIRE maintains a complete set of administrative records on asset inventories, payment receipts, and complaints. (LVB maintains the file for the legal agreements on physical assets to be taken (Form F).) Both VRA/RE and Construction Department representatives hear complaints on an informal basis and report administratively on project progress. XII. COSTS AND BUDGET VRA has made the necessary budgetary provisions to ensure that mitigation commitments (including compensation), and monitoring programs can be implemented effectively. VRA will pay full replacement cost for assets lost. The initially approved budget estimates are given in Table 4. Table 4: Original POTL Compensation Budget (in Cedis) Cost 2001 Cost 2002/03 Land under Right of 810,000,000 810,000,000 Way Structures (and Other 300,000,000 500,000,000 Incidental Expenses) Crops 1,200,000,000 1,400,000,000 Economic Trees 500,000,000 500,000,000 Access Tracks 4,000,000 40,000,000 Total Budget 2,850,000,000 3,250,000,000 The actual financial cost of land and asset acquisition is provided in Table 5.  Table 5: Current POTL Compensation Budget (in Cedis) Actual Cost 2003 Land under Right of Way * 1,400,000 Structures 221,000,000 Crops and Economic Trees 2,856,000,000 Access Tracks and Construction 490,000,000 Damages 10 % Contingency on Damages 49,000,000 Total 3,6178,400,000 * Each of the 290 pylons requires 1 0/m2, for a total of 2,900/m2, at an estimated average value of C 1,250,000/ha. The 12 percent cost overrun, with respect to the original budget, is largely due to much higher than anticipated claims for construction damage. VRA has committed the funds necessary to meet its obligations for all costs under the project. DISCLOSURE This document will be disclosed in Washington, DC, at the World Bank InfoShop, and in Accra, Ghana, at VRA headquarters.  a I I i I i I i i i  ANNEX A: PERTINENT LAWS AND REGULATIONS  I i I i I i I I I I i I I I  TkiiaHUNDRED AN~D TWENTY-FIFH .. _ . .~~~~~~~~~~~~~_ . _ ... .. . ......'X. - 7A -G v - * 1--' ZJi\t.--- - OF THE PARLIAMENT, OF THE .REPUBLIC-e :_ , OFGHANA, - ENTMTE-D THE STATE LANDS AcT, 196. Q. AN ACT to provide' for the acquisitionl ofrland 'in the national interest and other purposes conniecte te4iwi. DATE OH D ASSENT: 14th June,1962- - ~ Jff ENACTED by thie'President and the"Nati6iid.A~-S--E~--bly -in this present PNrliamenit a