Tanzania - Local Government Support Program Project : resettlement plan (Vol. 1 of 3) : Resettlement policy framework

RP260 Volume 1 l THE UNITED REPUBLIC OF TANZANIA PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT SCANNED FILE COFt Acga^aion Np G. O SIT N <~~~~~~~~~D L ~ LJAY J FILE (CoWh1t w *IPuarnO EBW CaI1 Adm Proc LOCAL GOVERNMENT SUPPORT PROGRAMME (LGSP) I l RESETTLEMENT POLICY FRAMEWORK l I I~~ 5:111:Pap  l THE UNITED REPUBLIC OF TANZANIA PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT I1m I LOCAL GOVERNMENT SUPPORT PROGRAMME (LGSP) I _lIl RESETTLEMENT POLICY FRAMEWORK DecemberI2003 I I I I U ~ December 2003l l 11  l l GOVERNMENT CF TANZANIA RESETTLEMEN TPOLICY FRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) TABLE OF CONTENTS Pagie Nos. A. Introduction and Project Description 3 B. Principles and objectives governing resettlement preparation 9 and Implementation. C. A description of the process for preparing and approving 12 Resettlement and compensation Plans. D. Land acquisition and likely categories of impact. 15 E. Eligibility criteria for defining various categories of project 16 I affected persons. F. A legal framework reviewing the fit between the laws of Tanzania 18 | and regulations and Bank policy requirements and measures proposed to bridge any gaps between them. G. Methods of valuing affected assets. 24 H. Organizational procedures for the delivery of entitlements, the 32 responsibilities of the government and the private developer. I. A description of the implementation process, linking 34 | resettlement and compensation implementation to civil works. J. A description of grievance redress mechanisms. 34 K. A description of the arrangements for funding 35 resettlement and compensation, including the preparation I and review of costs estimates, the flow of funds, and contingency arrangements. L. A description of mechanisms for consultations with, 37 and participation of, displaced persons in planning, implementation, and monitoring. M. Arrangements for monitoring by the implementation 38 agency and, if required, by independent monitors. 2  l GOVERNMENT OF TANZANIA RESETTLEMEN T POLICY FRAMEWORK LOCAL GOVERNMENTSUPPORTPROGRAM (LGSP) A. INTRODUCTION Tanzania covers an area of 945,000km2 and is one of Africa's most ecologically rich countries. The diverse climatic conditions range from arid, semi-arid, and mountainous areas of afro-alpine vegetation, woodland and dry land savanna. About 40% of Tanzania is covered by forests and woodlands, the Tanzania's eastem coastline extends about 240 km and there are several lakes, rivers and swamps, which contain diverse types of aquatic life. Tanzania ranks number one in Africa for the area set aside for wild animals and variety species (about 25% of total land area). Its population of 34,569,232 people is supported by a range of natural resources including forests, water, hydropower, scenery, fisheries, wildlife, soil and beach sands, natural gas, and minerals. Tanzania's is an outlet to several land-locked countries. In the 1980s, the Tanzanian government began its own efforts at economic reform, which were not particularly successful. More radical economic reform begun in 1986 through the World Bank and the Intemational Monetary Fund assistance in the Economic Recovery Programme (ERP), followed by the Economic and Social Action Programme, from 1989 - 92. Further changes, such as macro economic reforms, planning and budgeting systems, combating corruption, and policy reforms in many sectors, including a multi-party political system after 1995. In 1997, the Govemment prepared a Poverty Eradication Strategy and in 2000, Govemment articulated its long-term development Vision 2025. In institutional terms, a major shift has occurred towards decentralization. Over the past two decades, the Government of Tanzania has been increasingly devolving power to local government, at both the district council and village level. The Local Authorities Act of 1982, the Village Land Act of 1999, and the recent govemment and donors' efforts to build capacity of local government, through the Local Government Reform Programme (LGRP) have all contributed towards achieving this aim. The Local Government Reform Agenda 1996 - 2000 set out the Government's vision objectives, strategies and key activities for a decentralised local govemment. The decentralisation process is envisaged as providing improved services to the local communities through greater participation in the identification of local needs and priorities. Improved Accountability and transparency requirements will drive higher performance in financial and other management. The Agenda envisages democratically elected, autonomous local authorities, which are adequately resourced in terms of finance and suitably qualified staff. The local authorities will be responsible for the hiring and management of their staff. To attain the policy objectives an implementation programme for the Reform Agenda, LGRP, was instituted. To date the LGRP has concentrated largely on the development of the institutional and legal frameworks for a decentralised system of local government. Under the Reform Programme, the restructuring of the regional administrations has been completed and the various local government laws have been amended to facilitate decentralised local govemment. Other major achievements of the LGSP include: 3  GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) * The LG reforms are fully supported by the highest levels of Govemment * The Local Government Reform Team and the Zonal Reform Teams to support the reforming councils in improving their perforrnance and implementing new practices have been formed and the centres staffed, equipment and become | operational * 38 LGAs have begun the process of restructuring their organisations * Work on improving financial management in LGAs is underway * Work on building capacity in LGAs is underway In the restructuring exercise strategic plans are to be prepared, council structures | reviewed and refonned, and performance-monitoring systems put in place. In all, there are 17 steps. Currently, 37 of the 38 councils are at step 9 or beyond, and 9 have passed the staff audit stage or step 14. However, many of the earlier designated phase 2 or 3 councils remain at step 2. In short, the process is proving to be a lengthy one. Progress is also being made in the area of harmonisation of the sectoral legislation with | appropriate amendments to the laws. In order to meet the above objective of the Local Govemment Reform Agenda, the | Government of Tanzania (President's Office: Regional Administration and Local Government, PO-RALG) and the World Bank, with support of the Donors who form the Common Basket Fund, are preparing a new credit - the Local Government Support | Programme (LGSP), which will provide funding to local authorities for a variety of purposes including investment in local infrastructure. PROJECT DESCRIPTION The overall objectives of the proposed LGSP are: (i) to improve the access of communities and specifically the poor, to local services through expanding the physical stock of new and rehabilitated local infrastructure; and (ii) to enhance the delivery and management capabilities, productive efficiencies and financial sustainability of local government. LGSP is structured to achieve its objectives within three major investments components of the project, which are; Component 1: Capital Grant Programme (CGP) and Capacity Building Programme (CBP). Infrastructure investment and capacity building funds will flow to local authorities through a Capacity Building Programme (CBP) and Capital Grant Programme (CGP), which, together, will form Component I of the credit. Capital Grant Programme (CGP) I l 1 ~~~~~~~~~~~~~~~~~~~~~~4  GOVERNMENT CF TANZANIIA RESETTLEMENT POLICY FRAMWEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) Under the CGP, funds will be provided as a non-sector specific development grant to local authorities for funding of investment at their discretion and in line with local needs and prionhtes. The capital grant in principle should be a discretionary grant, however to enable the LGAs to make meaningful local prioritization, in the design of the CGP, guidance is provided to LGAs concerning the investment menu in order to limit LGA use of the grant to specific elements. Choice of investment to be funded under the CGP will be guided by the overall GoT development approach and priorities: the Decentralization Strategy and the Poverty Reduction Strategy which have been articulated in the LGSP objective namely "to improve the access of communities and specifically the poor, to local services through expanding the physical stock of new and rehabilitated local infrastructure". Thus, Local governments and communities will access these funds to finance subprojects for which they are mandated (as provided for under the Local Government Act, 1982) but limit the use of funds to capital investment strictly and specifically within the priority areas of the PRSP. Within the PRSP, GoT outlines a number of priority sectors in which improved and expanded service delivery is vital if the overall goal of poverty reduction is to be achieved. These include health, education, roads, agriculture, water and judiciary. It is envisaged that the LGA will utilize the fund for capital investments mainly in new and rehabilitated small - scale infrastructure such as classrooms, water development, roads, bridges, health infrastructure rehabilitation and other infrastructure that serve the wider public, leading to service delivery improvements within the Poverty Reduction Strategy priority areas. However the LGAs should not be prohibited to make investment outside these areas as long as they are sectors which LGAs have core functional and delivery responsibilities or are areas which are fundamental to its business (i.e. refuse removal). In addition, the CGP should cater for investment servicing and monitoring costs (within a ceiling), i.e. planning, appraisals, approvals, and monitoring to ensure that proper investments are made. These costs should be an integral part of a capital investment. Value for money project appraisals and environmental and social assessments may be part of the investment servicing costs. The investment proposal for example for construction of a bridge should include all costs related to the investment such as design costs, costs for supervision etc.; but LGA will rely on other means - i.e. its own internal revenue - for maintenance of the bridge. The funds should not cater for general recurrent expenses. Prior to the programme launch, limits should be set on what investments are not allowable tnder the CGP. In the design of the grant, a list of certain costs that cannot be covered from the LGSP capital grant has been recommended. This negative list include: * costs for land purchases, compensation and resettlement costs; * investments that are private in nature because they benefit only a few individuals for example investments in credit schemes for self help groups, improvements of l 11 5  I I GOVERNMENT OF TANZANIA RESETTLEMENTPCLICYFRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) particular farms through irrigation or provision of improved cattle farming etc.; and * activities in areas outside capital investments in infrastructure and service provision such as transport means, salaries and other recurrent cost items. Capacity Building Programme (CBP). The CBG is intended to provide local authorities with resources to invest in capacity - building and accountability - deepening exercises. Under the LGSP, the CB will be confined to include human resource development. In this aspect, capacity building , | interventions for LGAs include a variety of activities like career development (education), skills development (training), technical assistance, studies of other LGAs, provision of adequate working tools etc. Under the LGSP, choice of capacity building aspects to be funded under the CBP will be left open guided by the incentive structure of the capital grant. CBP will be available to I all local authorities on which Component I will be targeted and it is envisaged that the LGAs will target the performance gaps in their choice of areas for utilizing the capacity building funds. Component 2: Dar es Salaam Community Infrastructure Upgrading Program (CUIP) Through the Local Government Support Project (LGSP), the Government of Tanzania has requested the World Bank financial support for a Dar es Salaam Community Infrastructure Upgrading Program (CIUP). The main target of this program is focused on upgrading of basic infrastructure and services in low-income settlements as part of increased participation in planning and development, improved sustainability and accountability and strengthened capacities of local authorities. The general objectives of CIUP include: * to improve the productivity and well being of low-income urban residents in Dar es Salaam by upgrading infrastructure and services in selected project areas being unplanned and up-serviced settlements (sub-wards) in each of the city's municipalities. 5 * to strengthen the municipal systems for upgrading and maintaining infrastructure and services * to build community capacity to participate in planning and maintaining infrastructure in coordination with the Municipalities. The programme will be implemented over a period of 4 - 5 years. A total of 16 sub- ward areas have been selected for upgrading under CIUP during the first phase. The sub- ward areas are located in Ilala (4), Temeke (6) and Kinondoni (6) municipalities. Up- scaling the programme in future will involve another 15 sub-ward areas. The University I College of Land and Architectural Studies (UCLAS) has been assigned by the WB, to prepare the program, initially working with the three Dar es Salaam Local Authorities, utility agencies and representative communities (phase I communities). Preparation of 6  l GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK I LOCAL GO VERNMENT SUPPORT PROGRAM (LGSP) the programme was envisages to comprise of analytical work and initial community I consultations; preparation of investment packages; and preparation of Community Upgrading Plans, engineering designs and contract and bid document packages through a process of community input/interaction. The overriding principle of the CIUP is that all investments should be demand driven and be made only when the users and municipalities can pay for operation and maintenance I costs of the proposed investments. Recommended are infrastructure services for public use including roads and footpaths, drainage, solid wastes (refuse collection), sanitation (public toilets), and street lights. Water supply sub-projects will not be funded under CIUP. Unlike the CGP in Component 1, the CIUP will provide funds for LGAs to meet compensation costs but since the focus is upgrading key infrastructure and urban services based on cost recovery, resettlement should be minimal. A total of USD 18,000 per ha of I project area will be available for each sub-ward for investment in infrastructure in the above 5 main sectors. Final decision as to which specific sub-projects to investment in is left to the beneficiary community. Component 3: Capacity within PO-RALG and the Regional Secretariats The GoT has recognized that unless there is substantial improvement in institutional and fiscal capacity at the local level, effective and sustainable service delivery will not materialize. The Local Government Reform Programme (LGRP) was developed to operationalise the Tanzania government's policy and strategic decisions for a decentralised local government in order to bring about such institutional and fiscal improvements. Under the Reform Programme, the restructuring of the regional administrations has been completed and the various local government laws have been amended to facilitate decentralised local government. However, implementation of the reforms according to the LGRP has been slow and one specific factor has hindered implementation of reforms is lack of capacity at PO-RALG, Regional Administration and LGA levels to support and supervise reform implementation. Thus, in addition to the local- level (i.e. intra-local authority) capacity building activities in Component 1, the LGSP will support two sorts of capacity building under Component 3 namely: (i) Strengthening of capacity within PO-RALG and the regional Secretaniats to administer, monitor and support the local govemment I systems; and (ii) Capacity to implement the LGSP itself. The design of activities under Component 3 activity (ii) will require inputs from the preparation of Components 1 and 2 and will be undertaken separately at a later stage. Specifically, under component 1, communities will request financing for their sub- projects through grant funds made to their Local Governments. It is envisaged that some of these sub-projects will involve the construction of water supply, sanitation facilities, I storm drainage facilities (e.g. culverts, earth drains), school buildings, health centers, roads and footpaths, solid waste disposal etc. Sites for these initiatives will avoid or at least minimize as far as possible the impacts on people, land, and property, including I people's access to natural and other economic resources. Component 2 is a specific 7  l GOVERNMENT OF TANZANIA RESETTLEMENT 7POLICY FRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) programme - Dar es Salaam Community Infrastructure Upgrading Program (CIUP) to directly address growing concerns about urban poverty, by supporting a targeted programme to upgrade basic infrastructure and services including roads and footpaths, solid waste disposal, drainage, street lighting and sanitation in low-income, settlements in the Dar es Salaam city. Based on the nature of the sub projects envisaged under LGSP, it is inevitable that only a very small number of subproject activities will lead to either land acquisition and/or denial of, restriction to or loss of access to economic assets and resources and therefore, ultimately to the land acquisition and compensation --and, possibly, resettlement-- of people. When this occurs, relevant provisions in the laws of Tanzania, such as the Land Act 1999 and the Village Land Act 1999, and the World Bank Operational Policy, OP 4.12 on Involuntary Resettlement will be triggered. The GOT is not required to prepare a Resettlement and Compensation Plan at this stage since the sub-projects and areas affected have not yet been identified. However, the GOT is required to prepare a Resettlement Policy Framework (RPF), to be disclosed as a separate and stand-alone document from the Environment Assessment Framework, by the Government of Tanzania and the World Bank. The disclosure will be both in Tanzania where it can be accessed by the public and at the Infoshop of the World Bank and the date for disclosure must precede the date for appraisal of the project. The RPF establishes the resettlement and compensation principles, organizational arrangements and design criteria to be applied to meet the needs of the people who may be affected by the project. The RPF is prepared to the standards of the Government's own policy on resettlement and compensation and the policy of the World Bank, OP 4.12. When specific planning information becomes available and the land areas are identified, sub-project resettlement/compensation plans will be subsequently prepared consistent with this policy framework and will be submitted to the Bank for approval before any land acquisition, resettlement, or any other impact on livelihood occurs. According to World Bank Operation Policy 4.12 on involuntary resettlement this resettlement policy framework will cover the following sections: A. Introduction and Project Description. B. Principles and objectives governing resettlement and compensation preparation and implementation. C. A description of the process for preparing and approving Resettlement and Compensation Plans. D. Land acquisition and likely categories of impact. E. Eligibility critenra for defining various categories of project affected persons. 8  GOVERNMENVT OF TANZANIA RESETT-LEMENT POLICY FRAMEWORK U ~ ~~~~~~~LOCAL GOVERNMEVJT SUPPORT PROGRAM (LGSP) F. A legal framework reviewing the fit between the laws of Tanzania and regulations and Bank policy requirements and measures proposed to bridge any gaps between * ~~~~them. G. Methods of valuing affected assets. H. Organizational procedures for the delivery of entitlements, including, for projects involving private sector intermnediaries, the responsibilities of the financial intermediary, the government, and the private developer. I. A description of the implementation process, linking resettlement and compensation implementation to civil works. J. A description of grievance redress mechanisms. K. A description of the arrangements for funding resettlement and compensation, including the preparation and review of costs estimates, the flow of funds, and * ~~~~contingency arrangements. L. A description of mechanisms for consultations with, and participation of, displaced persons in pla-nning, implementation, and monitoring. M. Arrangements for monitoring by the implementation agency and, if required, by * ~~~~independent monitors. I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK I LOCAL GOVERNMENTSUPPORTPROGRAM (LGSP) B. PRINCIPLES AND OBJECTIVES GOVERNING RESETTLEMENT AND I COMPENSATION PREPARATION AND IMPLEMENTATION The impacts due to involuntary resettlement from development projects, may give rise to economic, social and environmental risks resulting in production systems being dismantled, people facing impoverishment when their productive assets or income sources are lost, people being relocated to environments where their productive skills I may be less applicable and the competition of resources increases; community institutions and social networks being weakened; kin groups being dispersed; and cultural identity, traditional authority, and the potential for mutual help being diminished or lost. I The resettlement policy may be triggered because the project activity causes land acquisition, namely: a physical piece of land is needed and people may be affected because they are cultivating on that land, they may have buildings on that land, they may I use the land for water and grazing of animals or they may otherwise access the land economically, spiritually or any other way which may not be possible during and after the project is implemented. Therefore, people will appropriately be compensated for their I loss (of land, property or access) either in kind or in cash, of which the former is preferred. The Land Act No.4 and Village Land Act No.5 of 1999 have set clear procedures for full, fair and prompt compensation while acquiring land from citizens. I These procedure should be adhere to, especially the Land (assessment of the value of compensation) Regulations made under section 179 of Land Act no. 4 of 1999. GN 78 published on 4/5/2001. Therefore, the objectives of this policy are the following; | (i) Involuntary resettlement and land acquisition will be avoided where feasible, or minimized, by exploring all viable alternatives. | (ii) Where involuntary resettlement and land acquisition is unavoidable, resettlement and compensation activities will be conceived and executed as sustainable development programs, providing sufficient investment resources to give the I persons displaced by the project the opportunity to share project benefits. Displaced and compensated persons will be meaningfully consulted and will have opportunities to participate in planning and implementing resettlement and compensation programs. (iii) Displaced and compensated persons will be assisted in their efforts to improve I their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or levels prevailing prior to the beginning of the project implementation, whichever is higher. Here, Affected people, according to the Bank policy, refers to people who are directly 3 affected socially and economically by Bank-assisted investment projects caused by: (a) the involuntary taking of land and other assets resulting in: i) relocation or loss of shelter I in1  GOVERNMENT OF TANZANIA RESETTLEMENT POLICYFRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) ii) loss of assets or access to assets iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or (b) the involuntary restriction or access to legally designated parks and protected areas results in adverse impacts on the livelihood of the displaced persons. The resettlement policy applies to all components under the project, whether or not they are directly funded in whole or in part by the Bank. The policy applies to all displaced persons regardless of the total number affected, the severity of the impact and whether or not they have legal title to the land. Particular attention will be paid to the needs of vulnerable groups among those displaced; especially those below the poverty line; the landless, the elderly, women and children, indigenous groups and the ethnic minorities or other displaced persons who may not be protected through Tanzania land compensation legislation. In particular for LGSP, the policy also requires that the implementation of individual resettlement and compensation plans are a prerequisite for the implementation of sub project activities causing resettlement, such as land acquisition, to ensure that displacement or restriction to access does not occur before necessary measures for resettlement and compensation are in place. It is further required that these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, the taking of land and related assets or the denial of access to assets may take place only after compensation has been paid and where applicable, resettlement sites, new homes, related infrastructure, public services and moving allowances have been provided to displaced persons. Furthermore, where relocation or loss of shelter occurs, the policy further requires that measures to assist the displaced persons be implemented in accordance with the resettlement and compensation plan of action. In this project, for instance, the implementation of a waste management plan at the level of the municipality or district council will require the acquisition of landfill sites in these jurisdictions. Internationally accepted minimum standards for the selection of landfill sites establishes certain conditions that will determine the location of such sites to protect local communities and to aid the bio-degradable process that is desired. For instance, some of these environmental and social protection conditions include; selecting sufficiently large sites that have a potential ten-year life capacity, to establish buffer zones arotnd the perimeter of these sites to push back residential development and for relocation outside these zones of public health services such as electricity lines, water and sewer lines, and the relocation of farming activities, irrigation, livestock etc. These are clearly public health issues. The possibility also exists for a sub-project involving the construction/re-aligning of a feeder road if properly designed would have a wide road reserve setting back settlements and also involuntarily leaving nearby communities no 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~11  GOVERNMENT OF TANZANIA RESETTLEMENTPOLICY FRAMEWORK LCCAL GOVERNMENT SUPPORT PRCGRAM (LGSP) viable option but to relocate due to increased and unacceptably high risk of flooding following torrential rains, as the roads are generally elevated above the floor levels of adjacent settlements. Because land acquisition has to be done in a way that satisfies the required design standards for any of these facilities, people and livelihoods would be impacted, and resettlement cannot be avoided in all cases. Furthermore, it is particularly important to neutralize to the extent possible any socio- economic pressures in the communities that are likely to be exacerbated by involuntary resettlement, by facilitating the participation of those impacted in the project activities. Therefore, impacted communities must be consulted and are part of the planning process (Section L). Offering impacted people the opportunity for employment during the construction or of providing services such as supplying water or construction materials (e.g., gravel) etc will provide an additional income-generating opportunity to a significant number of persons who may be affected in these targeted areas. Therefore, this opportunity for local employment is being taken advantage of in this resettlement policy framework (RPF), by including it for discussion in the consultative process with the affected communities. This RPF prefers to encourage potential contractors and Project Planning Teams through the provision of incentives in their contracts to show preference for employing project-affected persons (PAP's) and not through legal provision. One way of promoting this would be for the project to train displaced persons to acquire the skills needed by these contractors/project management committees. Furthermore, it is worthy to note that rush migration to newly designated project sites may occur by those wishing to take advantage of the rules of eligibility stated in Section B of this RPF. Were this to happen it would bring to bear additional pressures on the whole planning process and compensation budgets. This has major considerations when establishing a cut-off date. Finally, the RPF seeks to ensure that affected communities are meaningfully consulted, have participated in the planning process and, are adequately compensated to the extent that their pre-displacement incomes have been restored and that the process is a fair and transparent one. 12  I GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK * LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) C. DESCRIPTION OF THE PROCESS FOR PREPARING AiND APPROVING 5 RESETTLEMENT AND COIMPENSATION PLANS As stated earlier, the World Bank policy on Involuntary Resettlement OP4.12 is triggered because the LGSP project will finance productive investments that may require the involuntary taking of land and other assets. Since the location of these areas were not known at the time of the preparation of the project, the preparation and disclosure of this RPF by the Government of Tanzania is a conditionality for appraisal of this project. However, during implementation of this project, in a process defined here below, the identification of these areas will be made. When that happens, land will be acquired and U people will be affected. At that stage, OP4.12 calls for the preparation of individual Resettlement and Compensation Plans that must be consistent with this RPF. | To address the impacts under this policy, resettlement and compensation plans must include measures to ensure that displaced persons are; | (a) inforned about their options and rights pertaining to resettlement and compensation. 5 (b) consulted on, offered choices among, and provided with technically and economically feasible resettlement and compensation alternatives. | (c) and provided prompt and effective compensation at full replacement cost for losses of assets and access, attributable to the project. 5 The first stage in the process of preparing the individual resettlement and compensation plans is the screening process to identify the land/areas that are causing resettlement. The resettlement and compensation plans will contain the analysis of alternative sites f undertaken during the screening process. The GOT has been very successful in carrying out the decentralization policy as all the | local govemment institutions and structures are in place. The screening process will therefore take advantage of this by assigning new responsibilities required in this RPF to the relevant local government planning bodies at the closest level to the affected I communities. These planning bodies exist and are functional in Tanzania. The Screening Process | This process would lead to the creation of a list identifying a number of Community projects, Ward/Town Council projects, and District/Municipal Council projects, which may potentially involve resettlement issues. In pursuant thereof, the respective Technical X Planning Teams for the Community/Ward/Town council projects, and the Municipal/District Management Teams (DMTs) will be responsible for the screening of projects using and based on the environmental and social checklist to identify projects I with resettlement issues. The checklist would be used to screen each project that comes to these technical planning teams based on the overall guidelines set out in this RPF. 13  I' GOVERNMENT OF TANZANIA RESETTLEMEN T POLICY FRAMEWORK | LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) Ale,nbers of the Techniical Planning Teams Village level Village Planning Team consisting of village representatives (The village chairperson 3 should ensure these representatives include vulnerable groups - women, the poorest of the poor of the community etc.) Chairperson of Village Government Committee related to -the sub-project i.e. Water, Education, Health, Road etc. Facilitation Team consisting of extension staff at the community level and technical staff from different sectors from Ward and/or District level. | Urban Suib- Ward i.e. "Mtaa" level - Chairperson of "Mtaa" Government Committee related to the sub-project i.e. Water, Education/School Committee, Health, Road etc. I - Community Planning Team consisting of community representatives. (The Mtaa chairperson should ensure these representatives include vulnerable groups - 3 women, the poorest of the poor of the community etc.) Facilitation Team consisting of extension staff at the community level and technical staff from different sectors from Ward and/or Municipal Council (also referred to as Technical 5 Support Team (TST) in case of the CIUP for Dar es Salaam) Ward/Town council - Chairperson of Ward Committee related to the sub-project i.e. Water, Education, Health, * Road etc. - Ward/Town Council Planning Team consisting of community representatives - Facilitation Team consisting of extension staff at the community level and technical staff from different sectors from District or Municipal Council District/Municipal Management Teams - District/Municipal Director - Technical department related to the sub-project, - All Heads of Department or Sectors including the District Planning Officer' The list of sub projects that have potential resettlement issues will then be subjected to a comprehensive sensitization and consultation process (see section L of this RPF for 3 details) with the potentially impacted communities and the outcome of this process would be documented for each site. The list and the outcome of the consultative process for each site/sub-project on the list would then be sent to the respective local government council in the jurisdiction mandated to confirm, approve, disapprove, refer for further consultation and/or take a final decision on each proposed site/sub-project. Carrying out the screening process in this way is designed to give it the integrity and transparency it 3 needs to allow all stakeholders to have confidence in the process. Most Local Governments have assigned the role to coordinate cross-cutting issues to the Planning Department. 14  I' GOVERNMENT OF TANZANIA RESETTLEMEN T POLICY FRAMEWORK LOCAL GOVERNMENVTSUPPORTPROGRAM (LGSP) Preparation of Baseline Information and Resettlement and Compensation Plan I (RAP) Once sub-projects have been approved using this consultative process, the chosen locations will be the subject of a study and the preparation of a document as follows: a socio-economic study (this study will include determination of impacts) preparation of individual resettlement and compensation plans. | The purpose of the socio-economic study is to collect base line data within the chosen sites thereby enabling the social assessment of potentially affected populations/communities. The socio-economic study would focus on the identification of I stakeholders (demographic data), the participation process, identification of affected people (including owners and users of land) and baseline inforrnation on livelihoods and income, in addition to landholding. On completion of the socio-economic study, a resettlement and compensation plan (RAP) will be prepared for each sub-project that triggers OP 4.12. The requirements of the RAP are; 3 Baseline census and socio-economic survey information Specific compensation rates and standards Policy entitlements related to any additional impacts identified through the census or survey A description of the resettlement sites and programs for improvement or restoration of livelihoods and standards of living Implementation schedule for resettlement and compensation activities Detailed costs estimates m Consultations with affected people The RAP is to be prepared by the Project Planning Teams at the respective levels. 3 This process of identifying sites, consulting people and carrying out socio-economic studies may be an interactive one. If the Village/Ward Planning Teams or District Management Team (DMT), in close consultation with their respective local government I council determines that the mitigation measures (i.e. compensation levels) are too costly in terms of compensation amounts and the overall number of people impacted, the Planning Teams or DMTs can propose and investigate alternative sites. However, I irrespective of whether the process of identifying potential sites is pursued iteratively or whether a number of sites are examined simultaneously, the selection process must be as described above. The final list of sites approved by the local government councils, the process of selection 3 of the sites, and the RAP are all subject to final review and approval by the World Bank 1 15  l GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK 3 LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) in order to ensure compliance with Bank safeguards. In line with Tanzania's 5 decentralization policy, the approval by the World Bank will be for compliance, ensuring that before any sub-project is approved, individual resettlement and compensation plans are prepared and consistent with this RPF. At its sole discretion the World Bank may | delegate through the Government to the Local Governments this responsibility to ensure compliance with the provisions in this RPF after it is satisfied that effective monitoring of this process is in place. This would be looked at during appraisal and a mechanism 5 worked out that respects Tanzania's decentralization achievements and satisfies the World Bank's responsibility to ensure compliance with its safeguards policies. 3 Capacity will be built at the levels of Local Government Councils, Technical Planning Teams, and communities through training and technical assistance to ensure that all stakeholders involved discharge their different responsibilities effectively. D. LAND ACQUISITION AND LIKELY CATEGORIES OF IMPACT. 3 Generally, the LGSP sub-projects, which are likely to be proposed by community, are individually not expected to result in major impacts of people, land, property, including people's access to natural and other economic resources. Notwithstanding, land 5 acquisition, compensation and resettlement of people may be necessary for some of the sub-projects. The severity of impact, determines what the resettlement measures will be. For example, for a school or health clinic sub-project, the impact would be that a whole 6 piece of land is required whereas for a drainage sub-project requiring longitudinal drains only a very small portion of the land may be impacted. The entitlement matrix presented here below is so designed to assist in the process of determining severity of impacts. Eligibility Matrix Based on Severity of Impact Acthiity Nature of Impact Resettlement leasure Water supply: Water tank Small plot (20mx20m) Replace land and/or pay compensation * Well Small plot Replace land and/or pay compensation Water mains Linear Replace land and/or pay compensation Public standpipe Small plot on public Pay compensation if not in public right U footpath/right of way. of way. Sanitation facilities: Community latrines Small plot (lOmxlOm) Replace land and/or pay compensation U Storm drains (e.g., culverts, Limited linear impact, Pay compensation, if not in public right earth drains) along existing roads of way Primary education facilities Plot for building and school Replace land and/or pay compensation; I ____________________________ grounds Compensate for other assets. Primary health care facilities Plot for health clinic Replace land and/or pay compensation; Compensate for other assets. Road infrastructure (mostly Limited linear taking in Replace land and/or pay compensation; feeder roads) agricultural areas Compensate for other assets. Solid waste management Plot for waste disposal Replace land and/or pay compensation; l I Compensate for other assets. 16  3 GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK I LOCAL GOVERNMENT SUPPORTPROGRAM (LGSP) | E. ELIGIBILITY CRITERIA FOR DEFINING VARIOUS CATEGORIES OF PROJECT AFFECTED PERSONS 3 At this stage it would not be possible to attempt to quantify the estimated likely number of people who may be affected since the sub-projects are not yet created. * However, the likely displaced persons can be categorized into three groups, namely; (i) Affected Individual - An individual who suffers loss of assets or investments, land and property and/or access to natural and/or economic resources as a result of the sub-project activities and to whom compensation is due. For example, an affected individual is a person who farms a land, or who has built a structure on I land that is now required by a sub project for purposes other than farming or residence by the initial individuals. | (ii) Affected Household - A household is affected if one or more of its members is affected by sub-project activities, either by loss of property, land, loss of access, or otherwise affected in any way by proj ect activities. This provides for: I (a) any members in the households, men, women, children, dependent relatives and friends, tenants. (b) vulnerable individuals who may be too old or ill to farm along with the others. i | (c) relatives who depend on one another for their daily existence. (d) relatives who may not eat together but provide housekeeping and other domestic choirs, and I (e) other vulnerable people who cannot participate for physical or cultural reasons in production, consumption, or co-residence. 3 In the local cultures, members of production, consumption, and co-resident groups form overlapping, often incongruent sets of people who may exchange domestic or farming 5 services on a regular basis even though living separately. Compensation will not be limited to people who live together in a co-resident group, since this might leave out people whose labor contributions are critical to the functioning I of the "household". For example, among polygamous groups, each wife has her own home. (iii) Affected local community - A community is affected if project activities affect their socio-economic and/or social-cultural relationships or cohesion. For example project activities could lead into such improvement of socio-economic welfare that class-consciousness arises coupled with cultural erosion etc. (iv) Vulnerable Households - Vulnerable households may have different land needs I from most households or needs unrelated to the amount of land available to them: Unmarried women Non-farming 17  I' GOVERNMEiVT OF TANZANPIA RESETTLEMEN r PCLIC Y FRA MEWORK J LOCAL GO VERNMENT SUPPCRT PROGRAM (LGSP) Elderly I The infirm or ill Orphans These household types are not mutually exclusive, so that the elderly may be J internally displaced persons, and women are affected individuals. The Bank's OP 4.12 suggests the following three criterions for eligibility; a) Those who have formal rights to land (including customary and statutory rights of * occupancy recognized under the Laws of Tanzania) b) Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets provided that such claims are recognized I under the Laws of Tanzania or become recognized through a process identified in the resettlement and compensation plan. * c) Those who have no claim to land they are occupying or using. Those covered under a) and b) above are to be provided compensation Cor land they lose, I and other assistance in accordance with the policy. Persons covered under c) above are to be provided with resettlement assistance in lieu of compensation for the land they occupy or use, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy or use the project area prior to a cut-off date established by the local Government Technical Planning Teams and acceptable to the Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in a), b) or c) above are to be provided with compensation for loss of assets other than land. 5 Therefore, it is clear that all affected persons irrespective of their status or whether they have formal titles, legal rights or not, are eligible for some kind of assistance if they occupied the land before the entitlement cut-off date. The entitlement cut-off date refers 1 . to the time when the assessment of persons and their property in the area is carried out, i.e. the time when the project area has been identified and when the socio-economic study is taking place. Thereafter, no new cases of affected people will be considered. Persons I who encroach the area after the socio-economic study (census and valuation) are not eligible for compensation or any form of resettlement assistance. | Eligibility for Community Compensation Local Communities (villages, ward, districts, towns, etc,) permanently losing land and/or I access to assets under customary rights will be eligible for compensation. Method to Determine the Cut- Off Dates When the respective local council approves the sub-project, the Technical Planning Teams or DMT, will meet to discuss and agree on a programme of implementation. They 5 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 8  GOVERNMENT OF TANZANIA RESETTLEMENT PCLICY FRAMEWORK | LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) will also choose tentative cut-off dates. The dates would then be communicated to the | community through their respective representative in the Village Council or District Councilors (Diwani). j The entitlement cut-off date refers to the time when the assessment of persons and their] property in the sub-project area is carried out, i.e. the time when the sub-project area has < been identified and when the site-specific socio-economic study is taking place. | ~~~Thereafter, no new cases of affected people will be considered. The establishment of a cut-off date is required to prevent opportunistic invasions/rush migration into the chosen land areas thereby posing a major risk to the sub-project. Therefore, establishment of a I cut-off date is of critical importance. The Project Planning Team's will play a crucial role in identifying users of land since most of them would have acquired their customary rights to use the land from their local customary heads or Village Government. F. A LEGAL FRAMEWORK REVIEWING THE FIT BETWEEN THE LAWS AND REGULATIONS OF TANZANIA AND BANK POLICY I REQUIREMENTS AND MEASURES PROPOSED TO BRIDGE ANY GAPS BETWEEN THEM 3 The Local Government system in Tanzania is based on the decentralization policy and is enshrined in the 1977 Constitution, which was amended through Act No. 15 of 1984 with the effect of making the existence of local government authorities constitutionally I sanctioned. The decentralization policy is enacted through the Regional Administration Act (1997), which effectively initiated the decentralization process by scaling down the roles, functions and staffing at the regional level. Local Government Acts (Local Government (District Authorities) Act No.7 of 1982 and Local Government (Urban Authorities) Act No.8 of 1982) The local Government Acts provides for the system of local governments. Administratively, Tanzania is divided into three levels of Local Governments whereby each level has statutory functions with respect to development planning. g The three levels are as follows Local Government Unit Level District /Municipal / City Councils 3 Town Councils and Ward 2 Village/"Mtaa" Councils 1 3 19  l GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK 3 LOCAL GOVERNMENT SUPPORTPROGRAM (LGSP) Currently, there are 114 LGAs in Mainland Tanzania of which: | * 92 are District Councils * 2 are City Councils * 12 are Municipal Councils I * 8 are Town Councils An additional 7 LGAs are to be established by 2005 3 Districts are LGA's that are found in rural or semi-rural settings. Each district is subdivided into Wards, that in turn are divided into Villages and these consists of Hamlets ("Vitongoji"). Municipal Councils are subdivided into Municipal Wards followed by "Mtaa" (Sub-Ward). There are two city councils: Dar es Salaam City Council, which is sub-divided into 3 Municipal Councils and Mwanza City Council. The District Councils, City Councils, Municipal Councils, and Village Councils are body Corporate. According to the Local Government Acts and their amendments, the village, district and urban authorities are responsible for: planning, financing and implementing development programmes within their areas of jurisdiction. Each authority has to suppress crimes, maintain peace, good order and protect the public and private property; promote the social welfare and economic well- being of persons within its areas of jurisdiction, control and improve agriculture, trade and industry, further and enhance health, education and social life of the people, and fight poverty, disease and ignorance; and taking and I requiring the taking of measures for conservation of natural resources, prevention of soil erosion and prohibition and control of cultivation. | Teams to be vested with responsibilities identified in this RPF are the Technical Planning Teams found at the different local government levels. Village/Mtaa levels At community level, the Village Council is vested with the overall responsibility of project planning and implementation and a Village Planning Committee undertakes supervisory functions. In Villages participating in participatory development planning, a Technical Planning Team is usually constituted to undertake the planning on behalf of the communities with support from the Ward and/or District Facilitation Teams. Members of the planning teams are selected among the community members, the village council/government and other stakeholders. | Ward levels At Ward level, planning and implementation is the function of the Ward Development Committee. In Wards participating in participatory development planning, a Technical Planning Team is usually constituted to undertake the planning on behalf of the WDC with support from the District Facilitation Teams. 20  GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK LOCAL GOVERNMENT SUPPCRT PROGRAM (LGSP) District/Municipal level At District/Mvunicipal level, Heads of Department constitute the Council Management Team (DMT), which is responsible for all technical matters including overall planning. Planning for individual projects is the responsibility of the Heads of Departments or Sectors. The Planning Department is coordinator of all planning activities. The District I Development Committee supervises the implementation of all development plans. Land Tenure and Ownership Land tenure and ownership in Tanzania is governed by statutes such as the 1977 Constitution, National Land Act No. 4 of 1999, Village Land Act No.5 of 1999, Land I Acquisition Act 1967, and Land Ordinance, 1923 Cap. 113. Land in Tanzania is owned by the state. For the purpose of management of land under the land Act No. 4 of 1999 and all other laws applicable to land, public land in Tanzania is either: I * General land; or * Village land; or * Reserved land. Socio-economic activities are permitted on land in the first two categories of general/public land and not permitted or restricted in land reserved for national parks, protected areas and wildlife/forest reserves. In respect of public land, Tanzania has a dual system of land tenure. The system recognizes both customary and statutory rights of occupancy. Tenure rights to land can be held by individuals and by communities. Holdings of individuals can be (i) by leasehold right of occupancy for varying periods e.g. 33, 66, or 99 years; (ii) by customary rights of occupancy that have no term limit. Communities (Villages) are allowed to hold land and to manage it, although they do not formnally own the land. 5 The Land Act No. 4 of 1999 The basic principles of the Land Act are adopted from Land Policy 1995. One among 3 other basic principle of the Land Act is to pay full, fair and prompt compensation to any person whose right of occupancy or recognized long-standing occupation or customary use of land is revoked or otherwise interfered with to their detriment by the State under 3 the Land Act or acquired under the Land Acquisition Act. The main objective is to protect majority of citizen of Tanzania who have acquired land from either inheritance or village council allocation or clearing bush should not easily loose their land without full 3 and fair compensation. The full and fair compensation is only assessed by including all components of land quality. 3 Other important principle of the Land Act related to compensation; is to facilitate the operation of a market in land and regulate the operation of a market in land to ensure that rural and urban smallholders and pastoralists are not disadvantaged. To protect the 321  GOVERNMENT CF TANZANIA RESETTLEMENT POLICY FRAMEWORK 3 LOCAL GOVERNMENTSUPPCRTPROGRAM (LGSP) smallholders and pastoralists the approach should not be to avoid land allocations to this | group. Any disadvantaged group should get compensation of true land values of the land being held by any other group. 3 Regarding resettlement, this should be in accordance with provisions of the Land Act (and Land Acquisition Act of 1967). A process for preparing and approving resettlement plans should be based on PLUM (Participatory Land Use Planning and Management), | which is explicitly recognized in the Land Policy 1995. The village government should therefore be able to: * Review the proposal to prepare a resettlement plan 3 * Discuss the proposal in its village organs * Prepare and agree on proposals of the resettlement plan * Approve the resettlement plan subject national legislations esp. Land Act No 4 of 3 1999 and Land Acquisition Act of 1967. The Village Land Act No.5 of 1999 | The village land Act defines village land as consisting of: * land falling in the boundaries of a registered village under section 22 of District Authorities Act no. 7 of 1982; I * land designated as village land under the Land Tenure (Village Settlement) Act no. 27 of 1965; l* and having boundaries demarcated as village land under any law or I administrative procedure in force at any time before the Land Act No. 4; * land with its boundaries have been agreed upon between the village councils having jurisdiction over that land; or I * land other than reserved land which the villagers have, during the twelve years preceding the enactment of the Land Act of 1999 have been regularly occupying and using as village land in whatever manner. Majority of people in Tanzania get land freely within their village land: * From inheritance, I * Allocation from the village council or * By clearing land. The Village Land Act 1999 empowers the village council to manage village land as I trustee managing property on behalf of the villagers and other persons resident in the village. The Village Land Act 1999 empowers the village assembly to divide the village land, occupied, used, available for occupation, community used and/or public used land, I then to be known as communal village land. It will also identify land being occupied or used by an individual, family, or group of persons under customary law. Finally, the village council will identify land, which may be made available for communal or I individual occupation and use, through allocation by the village council. The same Act provides mandate to the village assembly to further plan the land uses to be designated to the communal village land. 22  GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) The Acquisition Act. 1967 The Land Acquisition Act gives powers to the President to take "Land" from private occupants for public purpose when in the public interest to do so. The Land ordinance declares all land in Tanzania "Public land" to be held by the state for public purposes. Compensation It is constitutional right in Tanzania that if one's property is either acquired or I nationalized, the individual so affected must be compensated for. The word compensation connotes, paying off the loss suffered or to be suffered by an individual on his property (land) being acquired, such that the affected turns out to be in position as though he/she I had not suffered or lost his property. Thus he/she will be compensated for the physical crust (soil) and developments thereon or underneath. The Government of the United Republic of Tanzania guarantees free enjoyment of any landholder of right of Occupancy and landholder is entitled to compensation if his land happens to be acquired by the Govemment for Public use. The current law in Tanzania on property acquisition and compensation is provided for in:- 1977 Constitution of the United Republic of Tanzania; Town and Country Planning Ordinance 1956 Cap. 378; X Land Act 1999; Land Acquisition Act 1967., Land Ordinance, 1923 Cap. 113; Land Policy, 1996; I In most cases in the country, persons dispossessed of their land for public use have been willing to leave them and allow the government to fulfill intended development projects. However, compensation rates offered by the government are considered not to be fair and 3 mostly inadequate. The inadequacy of compensation is always the direct result of excluding certain items of qualities in project assessment and delays in effecting payments. Presently in assessing the value of the unexhausted improvements for compensation purposes, the law emphasizes that the value should be the price that which the said I improvements can fetch if sold in the open market. But this in normal circumstances is lower than the replacement value but higher than the initial construction cost of the said improvements. Replacement value is defined as cost of putting up an equivalent structure | as the one existing at the time of valuation and making allowance for age, state repair and economic obsolescence in the place, Unexhausted improvements should mean any quality permanently attached to the land directly resulting from the expenditure of capital 3 or labour by a person holding a right of occupancy. The compensation should include the following: - | (i) Market value of the real property (ii) Disturbance allowance (iii) Transport allowance 5 (iv) Loss of profits or accommodation (v) Cost of acquiring or getting the subject land 23  1 GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWVORK I GOVERNMENT OF TANZANIA LOCAL GOVERNMENTSUPPORTPROGRAM(LGSP) (vi) Any other immediate costs or capital expenditure incurred to the development | of the subject land. Comparison between Land Law in Tanzania and Bank OP4.12 Whereas the law relating to land administration in Tanzania is wide and varied, entitlements for payment of compensation are essentially based on the right of ownership. X The Bank OP 4.12 is fundamentally different from this, and states that affected persons are entitled to some form of compensation whether or not they have legal title if they occupy the land by a specified cut-off date. The higher of the two standards will be I followed in this policy framework, since that procedure also satisfies the requirements of the lesser standard. | Comparison of Tanzania Law and World Bank OP4.12 Regarding Compensation Category of PA.PSI Type of Lost Tanzania Law World Bank OP4. 12 Assets I Land Owners Cash compensation is based upon market Recommends land-for-land cotnpensation. value of the real property, disturbance Other compensation is at replacement allowance, transport allowance, loss of cost. profits or accommodation, cost of acquiring S or gettinzg the subject land, any other immediate costs or capital expenditure incunred to the development of the subject land and compensation should be paid promptly, and if not paid in time, interest at market rate will be charged. Land Tenants Entitled to compensation based upon the Are entitled to sonmeform of compensation amount of rights they hold uipon land whatever the legal recognition of their * ~~~~~~~~~~~~~~~~~~~~~~~~~~occupancy. I Land Users Not entitled to compensation for land, Entitled to compensationfor crops and entitled to compensation for crops and labor may be entitled to replacement land sometime provided with other land of equal and income must be restored to pre- size and quality project levels at least. Owners of "Non permanent" Buildings Valuation and disturbance allowance. Entitded to in-kind compensation or cash Cost ofputting up an equivalent stricture as compensation atfull replacement cost the one existing at the time of valuation, including labor and r elocation expenses, based on prie of the open market prior to displacement. Owners of "Permanent" buildings Valuation and disturbance allowance. Entitled to in-kind compensation or cash Cost ofputting up an equivalent structure as compensation at full replacement cost the one existing at the time of valuation, including labor and relocation expenses, based on price of the open market. prior to displacement. Perennial Crops Cash compensation at market value based As per section G of this RPF once on historical production records. approved by the Bank and disclosed in Compensation ratesfor each crops are Tanzania and at the Bank in/foshop. established at the Valuation Division in the Ministry of Lands and Human Settlements U Development 24  l GOVERNMENT CF TANZANIA RESETTLEMENT POLICY FRAMEWORK I LOCAL GOVERNMENT SUPPORTPROGRAM (LGSP) g G. MIETHODS OF VALUING AFFECTED ASSETS The valuation of affected assets will be carried out by estimation of the market value, when it is known, and/or by estimation of the replacement cost. Graves are valued I separately - under the Graveyard Removal Act of 1968. Valuations methods for affected land and assets would depend on the type of asset. The land asset types identified under Tanzania law in this policy framework are; i) State Land not within the jurisdiction of a village ii) Village Land, including customary rights of villagers State owned land would be allocated free (perhaps except for surveying and registration fees), and the sub project would be expected to pay to acquire land in this category in cases where the state-owned land is being used by another user. This is because, although state owned, the land may be used by individuals and/or community. The guiding J principle is that whoever was using the land to be acquired by the sub project, would be provided other land of equal size and quality. 3 Assets held under customary rights on state owned land would have to be valued according to the following method and compensation paid: the respective local government council (the corporate body causing resettlement impact) will value and duly I compensate for assets and investments, including land, labor, crops, buildings, and other improvements, according to the provisions of the resettlement and compensation plan. Compensation rates will be market rates as of the date and time that the replacement is to S be provided. The current prices for cash crops would have to be determined. Compensation would be based on valuation at or before the entitlement cut off date in * compliance with this policy. The Bank policy on resettlement and compensation, OP4. 12, makes no distinction between statutory and customary rights but under this RPF for Tanzania not only assets f and investments will be compensated for, but also land. Thus, a customary landowner or land user on state-owned land, will be compensated for land, assets, investments, loss of access etc. at market rates at the time of the loss. If payment is delayed by more than six f months, an inflation premium, equal to 1% plus the official rate of inflation (using consumer price index, CPI), will be added to the agreed upon sum. 3 Compensation Payments and Related Considerations. Individual and household compensation will be made in cash, in kind, and/or through I assistance. The type of compensation will be an individual choice although every effort will be made to instill the importance and preference of accepting in kind compensation if * the loss amounts to more that 20 percent of the total loss of subsistence assets. 2 3 ~~~~~~~~~~~~~~~~~~~~~~25  I GOVERNMENT OF TANZANIA RESETTLEMENT POLICYFRAMEWCRK LOCAL GOVERNMENT SUPPCRT PROGRAM (LGSP) FORMS OF COMPENSATION Cash Pavyments | Compensation will be calculated and paid in Tanzania shillings. | Rates will be adjusted for inflation. In - Kind Compensation may include items such as land, houses other Compensation buildings, building materials, seedlings, agricultural inputs and financial credits for equipment. Assistance Assistance may include moving allowance, transportation and labour. Making compensation payments raises some issues regarding inflation, security and timing that must be considered. One purpose of providing in-kind compensation is to reduce inflationary pressures on the costs of goods and services. Local inflation may still occur, thus market prices will be monitored within the time period that compensation is being made to allow for adjustments in compensation values. The question of security, especially for people who will be receiving cash compensation payments needs to be addressed by the local government. Local banks and micro-finance institutions will work 5 closely with government at this level to encourage the use of their facilities, which will positively impact the growth of the local economies. The time and place for in-kind compensation payments will be decided upon by each recipient in consultation with the I local government. Compensation for Land Compensation is intended to provide a farmer whose land is acquired and used for project purposes with compensation for the land, labor and crop loss. For this reason, and for I transparency, "land" is defined as an area: * In cultivation | Being prepared for cultivation, or * Cultivated during the last agricultural season | This definition recognizes that the biggest investment a farmer makes in producing a crop is his of her labor. A farmer works on his/her land most of the months of the year. The major input for producing a crop is not seed or fertilizer, but the significant labor put into I the land each year by the farmer. As a result, compensation relating to land will cover the market price of labor invested times the amount of time spent preparing a plot equivalent to that taken. (The market price of the crop lost is considered separately, below). * The labor cost for preparing replacement land is calculated on what it would cost a farmer to clear and create replacement land. This value is found by adding I together the average costs of clearing, plowing, sowing, weeding twice, and harvesting the crop. Labor costs will be paid in Tanzania shillings, at the prevailing market rates. 26  GOVERNMENT OF TANZANIA RESETTLEMENT POLICY FRAMEWCRK 3 LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) The following table presents an example of a compensation schedule for a one-hectare | plot of land. The Tanzania Shilling values are based on arbitrary labor rates, which will need to be validated at the time payments, are made. * EXAMPLE OF LAND COMPENSATION SCHEDULE OF PAYMENTS Activity Month Paid Labor in Tanzania Shilling/ha | Activity Month Paid Rate Cost/day x no. of days Clear March To be determined Plough May To be determined Sow May To be determined Weed May To be determined Harvest November To be determined Total To be deterrnined All agricultural labor activities are included for two reasons. First, because of the need for transparency, all land labor will be compensated for at the same rate. Second, it is difficult to forecast when during the growing season a farmer might need to give up his/her land. Thus, the land compensation covers all investments that a farmer will make. | In certain cases, assistance may be provided to land users in addition to compensation payments, for example, if the farmer is notified that his/her land is needed after the agriculturally critical date, when s/he will no longer have enough time to prepare another land without help. Assistance will be provided in the forn of labor-intensive village hire, or perhaps mechanized clearing, so that replacement land will be ready by the sowing dates. The farmer will still continue to receive his/her cash compensation so that /s/he can pay for sowing, weeding and harvesting. Land measurement For the purposes of measuring land, the unit of measurement would be that which is used by and understood by the affected farmers. Therefore, if a traditional unit of measurement exists, that unit will be used. If a traditional unit of measurement does not exist, then it is recommended that land will be measured in meters or any other internationally accepted unit of measurement. However, in such an event, the unit that is being used must be explained to the affected farmers and must somehow be related to easily recognizable land features that the farmers are familiar with, such as using location of trees, stumps, etc. as immovable pegs. The most important concern of this exercise is to ensure that the affected farmer is able to verify, using his/her own standards/units of measurement, the size of land that is being lost. Ensuring that this occurs maintains transparency in the system and will thus avoid subsequent accusations of wrong measurements or miscalculation of areas. Calculation of Crops Compensation Rate 1 * The prices for cash crops will be determined as the average value over the previous year, corrected for inflation. The prices for subsistence crops will be determined as the highest value over the previous year, corrected for inflation. * 27  l l GOVERNMENT OF TANZANIA RESE7TLEMENT POLICY FRAMEWORK | LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP) 3 Crop values will be determined based on: * A combination of staple foods and cash crops. Specifically, the 80/20 ratio of land | that a farmer typically has in food crops and cash crops is used to determine the chances s/he would lose food crop rather than a cash crop income. * The value of stable crops to be taken as the highest market price reached during the year, in recognition of these factors: 3 - Although most farmers grow staple crops mainly for home consumption, they always have the option of selling these crops to take advantage of the market. - Farmers most often purchase cereals when they have run out, during the "hungry season" when prices are high. Compensating at a lower I value might put the individual or household at risk. | - Averaging the highest price of stable foods yields a high per hectare I value that reimburses for the vegetables and other foods that are commonly inter-cropped with staples, but are almost impossible to measure for compensation. Compensation for Buildings and Structures Compensation will be paid by replacing structures such as huts, houses, farm outbuildings, latrines and fences. Any homes lost will be rebuilt on acquired replacement land, however cash compensation would be available as a preferred option for structures (i.e. extra buildings) lost that are not the main house or house in which someone is living. The going market prices for construction materials will be determined. Alternatively, compensation will be paid in-kind for the replacement cost without depreciation of the I structure. The project will survey these prices for administrative purposes on an ongoing basis. Compensation will be made for structures that are: * Abandoned because of relocation or resettlement of an individual or household, I or * Directly damaged by construction activities. | Replacement values will be based on: * Drawings of individual's household and all its related structures and support services, l *l 28  GOVERNMENT CF TANZANIA RESETTLEMENT POLICY FRAMEWORK LOCAL GOVERNMENT SUPPORT PROGRAM (LGSP)