Birgunj Municipality Stage: Draft for Consultation Project Number: 36188 JUNE 2010

Social Safeguard Planning Document

Combined Resettlement Plan and Indigenous People's Plan for Birgunj Municipality Stage: Draft for Consultation Project Number: 36188 JUNE 2010

Nepal: Secondary Towns Integrated Urban Environmental Improvement Project – Birgunj Municipality

Prepared by Department of Urban Development and Building Construction, Ministry of Physical Planning and Works, Government of Nepal

The combined resettlement plan/indigenous people's plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

TABLE OF CONTENTS

GLOSSARY OF TERMS

EXECUTIVE SUMMARY 1

I. PROJECT DESCRIPTION 1 A. Overview 1 B. Subproject Description 1 C. Resettlement Category 3 D. RP/IPP Preparation 3 E. Summary of Key Impacts 4

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 5 A. Land Acquisition Requirement 5

III. SOCIOECONOMIC INFORMATION/PROFILE 6

IV. INFORMATION DISSEMINATION, CONSULTATION AND PARTICIPATION 12 A. Summary of Public Consultation 12 B. Continuation of Public Consultations 12 C. Disclosure of RP/IPP 12

V. GRIEVANCE REDRESS MECHANISMS 12

VI. LEGAL FRAMEWORK 8 A. Government of Nepal Laws 8 B. ADB Safeguards Policy Statement 10

VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS 10 A. Eligibility 10 B. Entitlements 10

VIII. INCOME RESTORATION MEASURES 13

IX. RESETTLEMENT BUDGET AND FINANCING PLAN 14

X. INSTITUTIONAL ARRANGEMENTS 14

XI. IMPLEMENTAITON SCHEDULE

XII. MONITORING AND REPORTING 17

ABBREVIATIONS

ADB – Asian Development Bank AP – affected persons BPL – below poverty level CBO – Community Based Organizations CDC – Compensation Determination Committee CDO – Chief District Officer CFC – Compensation Fixation Committee CPR – Community Property Resource DDC – District Development Committee DOR – Department of Roads DSC – Design and Supervision Consultants DUDBC – Department of Urban Development and Building Construction EA – Executing Agency GON – Government of Nepal GRC – Grievance Redress Committee HA – Hectares HH – Households IA – Implementing Agency IP – Indigenous People IR – Involuntary Resettlement LA – Land Acquisition LA Act – Land Acquisition Act MoPPW – Ministry of Physical Planning and Works NGO – Non-Government Organizations NRs – Nepalese Rupees PCO – Project Coordination Office PD – Project Director PH – Physically Handicapped PIU – Project Implementation Unit PLI – Poverty Level Income PM – Project Manager PPTA – Project Preparatory Technical Assistance PSA – Poverty and Social Assessment RP/IPP – Resettlement Plan R&R – Resettlement and Rehabilitation TA – Technical Assistance ToR – Terms of Reference WHH – Women Headed Households VDC – Village Development Committee

WEIGHTS AND MEASURES

sq.m – square meter

GLOSSARY OF TERMS

Land Acquisition means the process whereby land and properties are acquired for the RP/IPP of the project construction.

Baseline Socio-economic Sample Survey The RP/IPP of the baseline socioeconomic sample survey is to establish monitoring and evaluation parameters, it will be used as a benchmark for monitoring the socio-economic status of APs. The survey will cover 10% of affected people and 20% of seriously affected people. The survey will also collect gender-disaggregated data to address gender issues in resettlement. The survey will carry out the following: (i) preparation of accurate maps of the sub-project area; and (ii) analysis of social structures and income resources of the population.

Census The RP/IPP of the census is to register and document the status of potentially affected persons within the sub-project impact area. The census will cover 100% of APs. The census will provide a demographic overview of the population, and will cover people’s assets and main sources of livelihood.

Compensation means payment in cash or in kind of the replacement value of the acquired property.

Land Acquisition and Compensation Fixation Committee (LACFC) means the committee established under the chair of Chief District Officer as per Land Acquisition Act 2034 for the determination of compensation rate and implementation of compensation taking into consideration replacement value of the properties as guided by the resettlement plan and the use of community valuation methods.

Grievances Resolution Committee (GRC) means the committee established under each subproject to resolve the local grievances.

Project Affected Person (AP) includes any people including encroachers/ squatters, households, or firms who, on account of changes that result from the project will have their (i) standard of living adversely affected; and/or (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily.

Replacement Cost means the method of valuing assets to replace the loss at market value before the project or dispossession, or its nearest equivalent, plus any transaction costs such as administrative charges, taxes, registration, and titling costs.

Resettlement means all the measures taken to mitigate all or any adverse impacts of the project on the APs property and/or livelihoods including compensation, relocation (where relevant), and rehabilitation.

Relocation means the physical relocation of APs from their pre-project place of residence.

Rehabilitation means the measures provided under the resettlement plan other than payment of the compensation of acquired property.

Vulnerable Groups: Social categories whose livelihoods may be particularly vulnerable to disturbances created by the project. This means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement including: female-headed households, marginalized ethnic groups (Dalits, Freed Kamaiya), Muslims/religious minorities, elderly, disabled, indigenous people (margilized IPs), below poverty line—NRs 3,000 HH per month (source: Nepal Living Standards Survey 2003/2004)), landless or households losing 50% of total landholdings (particularly those totally dependent on agriculture for livelihood), as well as remote villages.

EXECUTIVE SUMMARY

The Project1 is to improve quality of life and to help achieve higher and socially inclusive economic growth in key regional centers in Nepal through improved and affordable municipal services delivered effectively, efficiently and reliably by accountable local bodies. The Project will implement urban environmental improvement, on an integrated basis, in the areas of sewerage and drainage, solid waste, and urban roads and lanes in the Biratnagar, Birgunj and Butwal and Kavre Valley municipalities.2 The municipalities have been carefully selected on the basis of (i) economic growth potential, (ii) demands for urban services, and (iii) urban management capacity. Each town is the main urban centre of an industrial corridor and of importance in external trade.

Within Birgunj municipality, the following subprojects are proposed: (i) Combined sewerage and storm water drainage (facing the eastern part of the city area), (ii) By-pass roads associated with the drainage channel, (iii) sewerage waste stabilization treatment plant in Chapkaiya, and (iv) solid waste resource processing site in Musaharwa/Itiyahi of Bisrampur and Itiyahi VDCs of Bara district.

The proposed drainage canals and by-pass roads will be constructed within the road public right-of-ways (RoW) and do not require land acquisition. For the treatment plant in Chapkaiya and land fill site in Musaharwa and Itiyahi the project will require 10 hectares of private land agricultural land (no structures). For the sewerage treatment plant in Chapkaiya, the project will require 6.72 hectares of private agricultural land (no structures).

The project is Category B for Involuntary Resettlement and Indigenous People. The resettlement impacts for individual subprojects in Birgunj are as follows: (i) Chapkaiya wastewater treatment plant 22 HHs/186 APs (19 vulnerable HHs); and (ii) Musaharwa/Itivhahi landfill 13 HHs/91 APs (5 vulnerable HHs). Vulnerable affected households include those who who are government listed Indigenous People, and those losing more than 50% of their total landholdings. Additional entitlements (e.g., training, additional allowance, assistance in finding replacement farm land) are provided to these vulnerable households to help improve their lives above the pre-project condition. Most indigenous people in subproject areas are economically and politically integrated into the mainstream society, and considering the nature and scale of these subprojects, impacts on indigenous peoples are limited to a small number of involuntary resettlement and/or land acquisition. Therefore, an indigenous peoples plan has been combined into the draft resettlement plan, with special assistance measures for vulnerable groups including indigenous people. With improvement of sanitation services, the Project is expected to result in improved health benefits for indigenous people. The Gender Equality and Social Inclusive (GESI) Action Plan also includes specific actions favorable to indigenous people. A combined resettlement plan/Indigenous People's Plan was prepared commensurate to the impacts. A combined resettlement framework (RF) and Indigenous People's Framework (IPF) was also prepared as part of the Project to guide the preparation of RP/IPPs for siting of public toilet facilities not expected to have significant resettlement impacts. This report was prepared to be consistent with the RF/IPF, ADB's Safeguards Policy Statement (2009) and GoN policies.

1 The Project was prepared through a Project Preparatory Technical Assistance. ADB. 2008. Preparing the Secondary Towns Integrated Urban Environmental Improvement Project. Manila. 2 In the National Urban Policy (2007), Biratnagar, Birgunj and Butwal are referred to as possible regional economic centers in Eastern, Central and Western regions, respectively.

RP/IPP preparation involved a process of impact assessment through land survey, socioeconomic survey and public consultation with affected people and stakeholders in planning and developing mitigation measures to avoid, minimize and/or mitigate any adverse environmental and social impacts. It contains a time-bound implementation plan and budget, institutional arrangements for implementing the plan, and monitoring arrangements. The assessment of losses and land acquisition is based on the preliminary design. The RP/IPP will need to be updated based on the detailed engineering design.

For the benefit of the APs, the Nepali version of a Summary RP/IPP will be made available to them with a copy maintained by PCO and PIU offices. A copy of the RP/IPP (draft and final) will be disclosed in ADB’s website. A Grievances Redress Committee (GRC) will also be set up under the project and meet on a case by case basis to address any grievances and objections resulting from the project.

The PIU within the municipality will have a social development officer assisted by social safeguard specialist from the Design Supervision Consultant will implement resettlement activities. A local Non Government Organization (NGO) will be hired by the municipality to link APs to relevant government programs related to social and economic rehabilitation, as well as provide necessary training for livelihood development. Internal monitoring will be the responsibility of the social development officers of the PIU and PCO of the Department of Urban Development and Building Construction (DUDBC) and will start early during the project when the implementation of the RP/IPP starts and will continue until completion of the subproject.

The resettlement cost estimate for this subproject includes eligible compensation for land and standing crops, assistance to vulnerable group, and training allowance and is part of the municipality and government contribution to the project costs. The cost related to land acquisition and resettlement/rehabilitation cost will be borne by the municipality with the DUDBC ensuring all costs are met. The PCO is to ensure that APs are compensated prior to land acquisition and commencement of civil works. A detailed indicative budget is given in this report. Costs include land and allowances for affected persons, including vulnerable households.

I. PROJECT DESCRIPTION

A. Overview

1. The Project is to improve quality of life and to help achieve higher and socially inclusive economic growth in key regional centers in Nepal through improved and affordable municipal services delivered effectively, efficiently and reliably by accountable local bodies. The Project will implement urban environmental improvement, on an integrated basis, in the areas of sewerage and drainage, solid waste, and urban roads and lanes in the Biratnagar, Birgunj and Butwal and Kavre Valley municipalities.3 The municipalities, namely, Biratnagar, Birgunj Butwal, and three Kavre Valley municipalities have been carefully selected on the basis of (i) economic growth potential, (ii) demands for urban services, and (iii) urban management capacity. Each town is the main urban centre of an industrial corridor and of importance in external trade.

2. Within Birgunj municipality, the following subprojects are proposed: (i) Combined sewerage and storm water drainage (facing the eastern part of the city area), (ii) By-pass roads associated with the drainage channel, (iii) waste stabilization treatment plant in Chapkaiya, and (iv) solid waste resource processing site in Musaharwa/Itiyahi of Bisrampur and Itiyahi VDCs of Bara district.

3. The proposed drainage canals and by-pass roads will be constructed within the road public right-of-ways (RoW) and do not require land acquisition. For the treatment plant in Chapkaiya and land fill site in Musaharwa and Itiyahi the project will require 10 hectares of private land agricultural land (no structures). For the sewerage treatment plant in Chapkaiya, the project will require 6.72 hectares of private agricultural land (no structures).

B. Subproject Description

4. Table 1 provides a summary of the proposed subprojects in Birgunj municipality.

Table 1: Summary of Subprojects in Birgunj Municipality

Drainage, treatment plant and roads associated with drainage lines Combined Develop basic infrastructure for the Construction and rehabilitation of sewerage and improvement of urban environment for drainage including culverts, bridges, storm water better health and hygienic conditions manholes and culvert slab covers; drainage of people and diversion channel (eastern part of the city area ) By-pass-Roads Improve environment, health and Resurfacing of roads dismantled associated with hygiene of the people reducing the during construction, upgrading roads drainage risk of adverse environmental impacts to blacktopped, construction of channel associated with establishment of basic footpaths and curbs drainage facility and providing improved access to the people Waste Develop infrastructure for the 6.72 ha sewerage treatment facility stabilization treatment of waste water and sewage on the north part of the local road. treatment plant and reduce environmental risk Construction of associated in Chapkaiya associated with health hazards infrastructure such as collection

3 In the National Urban Policy (2007), Biratnagar, Birgunj and Butwal are referred to as possible regional economic centers in Eastern, Central and Western regions, respectively.

Drainage, treatment plant and roads associated with drainage lines chamber, manholes, buildings, and parking lot; excavation of treatment ponds; boundary wall; surface drainage; and tree plantation, turfing and landscaping Solid waste management Solid Waste Establish basic level solid waste A 10ha landfill site. Construction of Resource management system and improve boundary wall; processing shed and Processing Site urban environment watchmen quarter; tree plantation, in Musaharwa turfing and landscaping at solid waste and Itiyahi transfer points and improvement of access roads; excavation; construction of boundary wall, sheds and buildings; parking lot; leach ate drainage collection sump tanks; installation of site lights and fire extinguishers; and river training and bank protection (only for Sighiya river site )

1. Stormwater Drinage

5. Birgunj, located on the flat land of Terai,4 suffers from chronic water-logging problems caused by inadequate capacity of drainage channels due to ad-hoc construction of the drainage system and poor maintenance worsened by obstructions from solid waste dumping. Storm- water drainage systems will be improved together with wastewater management systems, as storm water drainage is currently being used as open sewers, causing bad odors, health risks and pollution of the watercourses. Wastewater treatment plants will be constructed in both municipalities. Urban roads and lanes will be reinstated or upgraded where drainage and sewerage pipe networks work will be undertaken. The proposed drainage canal is 7.55 kilometers long proposed drainage canal facing the easternside of the municipality, covering wards 15,18 and 19 which starts from Pratima Chowk and comes down the buspark area from where it bifurcats to Bisuhawa and National Medical College Hospital area of Birgunj. This bifurcation drainage channel is 1,776 meter long and leads to an already existing drainage canal. The proposed drainage canal moves further south to Nagawa tole where it again bifurcates towards an old drainage channel. The drainage ultimately outfalls to the Singhiya River. All works will occur within the public right-of-way (RoW) and no land acquisition is required. Mitigation measures to limit impacts during construction are included in the environmental management plan.

2. By-Pass Road

6. The proposed by-pass road follows an existing earthern road built by the municipality and thus no new ladditional land is required for the further improvement of the existing by- pass road. It starts from Bahuari and comes down to the GhusaRP/IPPur area (Ward No, 19). Eventually this bypass road joins the main road and moves further south to the Indian border.

4 The Terai is the southern plain area bordering India.

3. Sewerage Treatment Plant

7. The STP is located approximately two kilometers south from the municipality office in Chapkaiya (Ward Nos. 1 and 2). The proposed site requires 6.72 hectares of private agricultural land. A total of 22 land owners are directly affected while acquiring 10 hectares of land.

4. Landfill Site

8. While Birgunj municipality is estimated to provide relatively good waste collection services covering 60% and 100% of the municipality areas, respectively, in the absence of a sanitary landfill, waste is being dumped haphazardly along river banks and open spaces, with little recycling, causing pollution and public health hazards. The Project will adopt an integrated approach for solid waste management, with review and improvement of the entire system from segregation and collection, through 3R (reduce, reuse, recycle) including focus on composting of organic waste, to transportation and final disposal at the sanitary landfill, and thus include procurement of necessary equipment and vehicles and the construction of a sanitary landfill site in each municipality. The proposed landfill site is located approximately 3.5 kms east from Birgunj municipality office and situated in two wards (9 and 7) of two Village Development Committees (Bisrampur and Itiyahi) of Bara district. The land is private agricultural land with some trees.

9. Community Development Programs. This subcomponent will include skills training mainly for the poor and include affected persons impacted by land acquisition activities created by the Project. A local NGO will be engaged to assist the community development program.

C. Resettlement Category

10. The resettlement impacts for individual subprojects in Birgunj are as follows: (i) Chapkaiya wastewater treatment plant 22 HHs/186 APs; and (ii) Musaharwa/Itivhahi landfill 13 HHs/91 APs. This subproject is Category B (IR and IP) requiring a resettlement plan prepared commensurate to the impacts.5 As government listed IPs are also affect an indigenous peoples plan has been combined into this resettlement plan, with special assistance measures for vulnerable groups including indigenous people.

D. Resettlement Plan/Indigenous Peoples Plan Preparation

11. The combined RP/IPP preparation involved a process of impact assessment through the following methods: (i) Review of relevant documents, laws, policies and practices on involuntary resettlement, particularly the Government of Nepal and the Asian Development Bank; (ii) consultations with social science experts from relevant institutions in Kathmandu relating to issues such as urban poor, squatters vs. slum dwellers, indigenous vs. minority groups; (iii) meetings and discussions with concerned officials of Birgunj municipality for various components of the project and their location/site; (iv) field visits while considering the project specific components of the municipality; and (v) focus group discussions with the project affected people in relation to land acquisition and compensation. A small check list was prepared for obtaining information from the project municipality/institution whereas a

5 Projects are assigned an involuntary resettlement category depending on the significance of the probable involuntary resettlement impacts. “Significant” means 200 or more people will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating).Category A projects require a full resettlement plan. Category B projects include involuntary resettlement impacts that are not deemed significant and require a short resettlement plan.

4 questionnaire was designed for collecting information for the project affected person/family. This RP/IPP is prepared through direct consultation with the affected people. Other key stakeholders included members of the municipality. The assessment of losses and land acquisition is based on the preliminary design. The RP/IPP will need to be updated based on the detailed engineering design.

E. Summary of Key Impacts

12. The land area required for the sub project includes both private and public ownership. The total private land area to be acquired totals 16.72 ha (6.72 ha for STP and 10 ha for landfill) on legally owned agriculture land with no structures. There are 22 affected land owners for the STP site, and 13 land owners for the landfill site. There was one absent landowner at the STP site location who was not available for consultation, however, they will need to be contacted at the soonest. Table below summarizes the key resettlement impacts.

Table 2: Summary of Resettlement Impacts in Birgunj Impacts on Land Drainage By-pass Treatment Landfill Site at Canals roads Plant site at Musaharwa/Itiyahi, Chapkaiya

Permanent land to be None. None. 6.72 ha 10 ha acquired Municipal land. Municipal land. Affected land owners 0 0 22 13 (total ) Affected persons (total ) 0 0 186 91 Affected 0 0 21 13 household/family (total) Loss of livelihood Households losing 0 0 21 13 agricultural income from farming their own land Vulnerable Affected 19 5 Households (total) BPL (NRs 3000/month) 0 0 0 0 Disability 0 0 0 0 Indigenous family/Plot 0 0 4 0 owner Other Vulnerable 0 0 0 0 family+ Female headed 0 0 0 household * Losing 50% of land 0 0 15 5 holding Affected Structures Permanent residence 0 0 0 0 Temporary structures 0 0 0 0 Affected Trees/Crops 0 0 Fruit trees (number) 0 0 0 0 Timber trees (number) 0 0 0 2500 Bamboo trees (number) 0 0 5000 Timber –Sisoo 250 Affected Common 0 0 0 0 Property Resources Household characteristics

Impacts on Land Drainage By-pass Treatment Landfill Site at Canals roads Plant site at Musaharwa/Itiyahi, Chapkaiya

Average family size 0 0 8.9 7.0 Average household 0 0 NRs 388,600 NRs 258,808 annual income Primary source of 0 0 Business, Agriculture, wage income agriculture labor

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Land Acquisition Requirement

13. Figure 1 shows a map of Birgunj with proposed facility locations. The land area required for the sub project includes both private and public ownership. The total private land area to be acquired totals 16.72 ha (6.72 ha for STP and 10 ha for landfill) on legally owned agriculture land with no structures. There are 22 affected land owners for the STP site, and 13 land owners for the landfill site. There was one absent landowner at the STP site location who was not available for consultation, however, they will need to be contacted at the soonest. Table 3 summarizes the impacts to land and livelihood.

14. There are no registered tenants and no sharecroppers or seasonal labor hired at either site. Vulnerable persons are amongst the affected person, including 19 at the STP site (IPs and landowners losing 50% or more of their land) and 5 at the landfill site (those losing 50% or more of their land). The landfill site also includes a number of valuable trees (2,500 total), bamboo trees (5,000 total), and Sisoo trees (250).

Table 3: Land acquisition and Cost of Land for the Project Project Location of land Land Present land use Tentative land Remarks * component required price (in NRs)* (ha) Drainage Drainage In the existing by pass No additional By pass road area - No additional land required - channel. roads side area facing land is with already the eastern side of the required existing canal in municipality including the diversion site diversion 13 Solid Waste Management Treatment plant Chapkaiya, Ward No. 1 6.72 hectare Agriculture ; two 5-7 lacks per katha Final engineering design and Ward 2 , Birgunj (private) crops ; all private ( average 6 lacks will finalize the total land municipality land per katha required Landfill site Birampur VDC , Ward 10 hectare; Agriculture , two 3 to 4 lack lacks Final engineering design No.9, and Itiyahi VDC (private) crops are grown ; per katha in the will determine the exact Ward 7, Bara district privately owned road area and 2-3 amount of land required land lacks per katha inside the road area (average 3 lacks per katha ) Roads and Lanes By-pass roads Within existing earth No additional By-pass road - No additional land required. road land required *Note: Cost of land is based on interviews with the project affected people or the land owners of the area. The price of land could be higher or lower considering two factors: (i) The timing of land purchase and ii) Negotiation with the landowners.

Figure 1: Location of Proposed Roads and Lanes Improvement in Birgunj

Figure 2: Location of Proposed SWM Facilities in Birgunj

1. Sewerage Treatment Plant Site

15. The land area to be acquired for the sewerage treatment plant is located on the northern side of the access road. The proposed treatment site is a farming area where two crops (wet rice followed by wheat) are grown every year. A total of 22 landowners are affected. The yield of crops is approximately 4,000 kilograms of paddy and 2000 kilograms of wheat per year. The table below lists the affected landowners at the site.

Table 4: Inventory of Land owners at Chapakiaya Treatment Plant, Birgunj Percent of Total land total land Plot Owners Area to be holdings of Land use of holdings S.N. Parcel No. Name(names taken Acquired in Plot Owner acquired land lost due to out to protect privacy) sq. meter in sq. m. project component 1 22 2031.78 3047.67 Agriculture 66.7 2 23 2031.78 3047.67 Agriculture 66.7 3 20,26 1693.15 4402.19 Agriculture 38.5 4 21,63 1693.15 5756.71 Agriculture 29.4 5 8 3386.30 4740.82 Agriculture 71.4 6 9 2404.27 4063.56 Agriculture 59.2 7 10 1575.26 2031.78 Agriculture 77.5 8 41,7 1337.0 9312.31 Agriculture 14.4 9 42 948.14 1693.15 Agriculture 56.0 10 45 6450.90 8465.75 Agriculture 76.2 11 79,82,83 Agriculture 12 15 2370.41 3386.30 Agriculture 70.0 13 11 4740.82 8465.75 Agriculture 56.0 14 26 5079.45 6095.34 Agriculture 83.3 15 3047.67 4402.19 Agriculture 69.2 16 3386.30 5657.71 Agriculture 59.9 17 4740.82 7449.86 Agriculture 63.6 18 2709.04 2709.04 Agriculture 100.0 19 1693.15 1693.15 Agriculture 100.0

20 1693.15 2370.41 Agriculture 71.3 4,5,6,8,9,10, 21 15,238.35 22,349.58 Agriculture 68.2 17 and 18** 22 Agriculture Note: Two landowner were unknown or unavailable for consultation. There are a total of 22 affected landowners.

2. Landfill Site

16. The land area to be acquired for the landfill site is 10 hectares and a total of 13 are directly affected. Some landowners own quite a large area of land (4.7 hectares of land is owned by Mr.Saryug Prasad Chaurasia), explaining the fewer number of landowners affected than the sewerage treatment site. The site is an agricultural land where two crops (wet rice and paddy) are grown. There are gardens of planted trees (around 8-10 katha of land). Yield of land is about 4,000 kilograms of paddy and 2,000 kilograms per year. Many of the landowners stay within the Birgunj municipality area and thus they support the development program of the municipality. Table below lists the affected landowners at the landfill site.

Table 5: Inventory of Land Owners at Solid Waste Landfill Site Percent of Plot Owners Area to be Total land Land use of total land Parcel Name(names taken S.N Acquired in holdings of Plot the acquired holdings No. out to protect sq.meter Owner in sq.m land lost due to privacy) project 81,86,4 1 6772.60 21672.32 Agriculture 31.3 87,495 2 494 677.26 5756.71 Agriculture 11.8 3 91 2709.04 8465.75 Agriculture 32.0 4 1993.15 4402.19 Agriculture 38.5 5 79 2709.04 5418.08 Agriculture 50.0 6 1693.15 5756.71 Agriculture 29.4 7 2370.41 6095.34 Agriculture 38.9 8 2370.41 5756.71 Agriculture 41.2 9 5418.08 9820.27 Agriculture 55.2 10 4063..56 7449.86 Agriculture 54.5 11 45376.0 48762.72 Agriculture 93.1 12 6772.60 6772.60 Agriculture 100.0 13 20317.80 22010.95 Agriculture 92.3

III. SOCIOECONOMIC INFORMATION/PROFILE

17. According to 2001 Census, Birgunj municipality had 19,910 households and 112,484 populations (2001 census) with an average household size of 5.64 persons per household. The projected population of Birgunj municipality in 2011 is 183,130 or close to 4 per cent growth rate per annum between 2001 and 2011 periods. The major ethnic/caste group currently living within the Birgunj municipality area is given in 18. Table .

Table 6: Major ethnic/caste groups in Birjung municipality Caste/ethnicity Total Population Hill caste/ethnicity Hill Brahmin 8,216 Newar( Indigenous/Janajati-Hill 6,256(5.6%) Chhetri 4,355 Hill Dalit ( Kami, Damai and Sarki)-Vulnerable Pop. 453(0.4%) Other Hill Adibasi/Janajati(indigenous) 2,556(2.3%)

Other-Hill caste/ethnicity(total ) 786 Total –Hill caste/ethnicity 22,629(20.1%) Tarai caste/ethnicity Tharu( Indigenous group –Tarai 2,037(1.8%) Dhanuk(Mandal)Indigenous group-Tarai ) 1,480(1.3%) Muslim 19,602(17.4%) Kanu 8,226 Kurmi 6,592 Kalwar 5,085 Marwari 4,991 Sonar 4,667 Baniya 3,696 Kayastha 3,661 Yadav 3,052 Brahmin-Tarai 3048

Tarai Dalit : total (vulnerable pop.) 4,221 Other Tarai caste/ethnicity(total) 19,497 Total Tarai caste/ethnicity 89,855(79.9) Total Population 112,484(100.0%) Source: CBS, 2001 Census; Tarai Dalit groups in the municipality are: Chamar/Harijan, Halkhor, Dushad/Paswan, Tatma, Dhobi, Dom, and Mushahar

19. Birgunj municipality city is overwhelmingly represented by Tarai (Madhesi) groups – such as Tarai caste, Tarai Adibasi/ Janajati and Tarai Dalits. The exact number of poor people living in the Birgunj municipality area is not available. There are very few squatter and slum settlements in Birgunj municipality, suggesting that the number of poor people could be much lower than expected. But the “Urban Community Survey of Birgunj Municipality” carried out by a research team (September to October 2009) under PPTA 7182-NEP/ADB noted that there are poor women populations virtually in every ward of the municipality area and their number could go higher than 50% in many wards (1, 2, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19). The study divided Birgunj municipality into 95 settlement clusters which provides a picture of poor women in every cluster of the ward. As women population consists of almost 48% in municipality, and almost 50% of them are poor in 14 wards ( out of 17) the poor populations in Burgunj municipality could go as high as 30% to 35%.

20. Socioeconomic Profile of Persons at Sewerage Treatment Plant Site. Table 7 below shows the socioeconomic profile of the affected households at the Chapkaiya site. The average household size of the affected persons is 9.1 persons which is higher than the average household size of 5.6 in the municipality. Most households are literate and involved in dual income generating activities such as agriculture and business. Paddy, and wheat are the major crops grown in this area. Except one household of hill community (Rana family) all other households of the affected area belong to the Tarai (Madhesi) community. Four households of Kumhar (potmakers group in the Tarai) as land owners are the indigenous/Janajati group. Of them, one is the female- headed household. As this area is located close to the border area many of the affected households are involved in different types of businesses. In terms of income, households/persons are relatively wealthier compared to other towns. The household annual income is 253,372.22 rupees per where as the per capita annual income is Rs. 26,531.12.Rs. Therefore, the income level of the affected households is higher than the national urban average. The income is calculated based on total agricultural production, and other sources of income such as business, jobs, etc. According to the NLSSII 2003/04, the urban household annual income and per capita income (excluding the Kathmandu Valley) was NRS 122,635 and NRS 11,502. respectively. Vulnerable households include 4 IP households

(Janajati group)6 and 16 losing 50% (3 are IPs) of their land. Therefore, there are 19 vulnerable HHs affected at this site. The RP/IPP provides additional measures to improve the lives of vulnerable households above pre-project levels.

21. Indigenous People. In the case of Chapkaiya Treatment Plant, all four families are government listed IPs and belong to the Kumhar (or potters) group. In the Hiil and Tarai, the pronunciation for the term potters is different. But the meaning is the same as “potters”. Kumharain is the suffix for the female for Kumhar. Sometimes they also call themselves as Kohar or Pandit in the Tarai. These indigenous are socioeconomicly integrated into their surrounding community and are not considered economically vulnerable. The four families have migrated to the area and the land is not considered their ancestral/tribal territorial land. Nonetheless, as IPs, they experience broader historical and societal exclusion, and for this purpose are considered vulnerable under the Project.

6 Janajati Indigenous Group – is an officially government listed indigenous group as they are a community who has its own mother language, traditional customs, distinct cultural identity, social structure, and written or unwritten history.

Table 7: Socio-economic Profile of Affected Households, STP at Chapkaiya

SL.No Plot HH Size Education Occupation Annual income* Vulnerability owners status Name

Total F M Illiterate FL/primary Lower Major Secondary HH/yr per capita/ second. per yr And above

1 5 2 3 10+2. Agri. Service Losing 50% or more of total landholding

2 4 2 2 10+2 Agri - Losing 50% or more of total landholding

3 11 5 6 Illi Agri Wage 129,300.00 11,754.54 IP labor,pottery -

4 12 5 7 Lit Agri Business 153,750.00 12812.50 IP

5 8 3 5 Lit Agri. Business 205,400.00 25,675.00 Losing 50% or more of total landholding

6 9 3 6 Illi Agri. - IP

7 12 4 8 Lit Agri. Business Losing 50% or more of total landholding

8 8 3 5 12 class Business Agri. 667,750.00 83,468.75

9 9 4 5 Lit Agri. Business Losing 50% or more of total landholding

SL.No Plot HH Size Education Occupation Annual income* Vulnerability owners status Name

10 13 5 8 Lit Agri. Business Losing 50% or more of total landholding

11 9 4 5 . Lit. Agri. Business Losing 50% or more of total landholding

12 9 4 5 B.A. Service Agri. Losing 50% or more of total landholding

13 13 5 8 Lit. Business Agri. Losing 50% or more of total landholding

14 15 5 10 Lit. Agr. Business Losing 50% or more of total landholding

15 11 4 7 Lit. Agri. Business Losing 50% or more of total landholding

16 9 3 6 Lit. Business Agri Losing 50% or more of total landholding

17 7 3 4 Lit. Agr. Business IP Losing 50% or 18 10 4 6 Lit. Agri. - more of total landholding Losing 50% or 19 5 2 3 B.A. Agr. Business 175,400 35080.00 more of total landholding 20 7 3 4 10+2 Business Agri. 1,000,000.00 142857.14 Losing 50% or more of total

SL.No Plot HH Size Education Occupation Annual income* Vulnerability owners status Name landholding

Total 186 73 113 Note: two landowners are unkown or absent and unavailable for consultation.

22. Socioeconomic Profile of Persons at Landfill Site. Table 8 shows the socioeconomic profile of the affected households at the landfill site. A total 13 households who are directly affected by the project component-land fill site were surveyed. All affected persons are literate. Except one AP, (10+2 level) all others are either literate or read up to the class ten level. The major occupation of all APs is agriculture. Paddy, and wheat are the major crops grown in this area. Some APs do wage labor as the secondary occupation. The income is based on total agricultural produce and other sources of income such as wage labor, etc. The average annual income of APs is NRs 215,350.00 while the per capita annual income is Nrs25,335.29. This income level is also higher than the national average. There are no BPL households. One household is losing 100% of their land so is considered vulnerable. According to the NLSS 2003-04, the rural household annual income was NRs65,107.00 and per capita annual income was NRs7,075. As this area is located close to the urban area, the income level is higher.

23. The caste/ethnicity status of the project affected people/family in land fill site located in Bisampur and Itiyahi VDCs are Tarai (Madhesi) people comprising primarily of two groups – Chaurasiya or Barahi and Koiri. The traditional occupation of Barahi or Chaurasiya is to make betel-nut. The Koiri’s traditional occupation is to grow vegetables. Koiris are considred professional in growing vegetables. These days, all these groups do agriculture including their traditional occupation. No indigenous people exist among the affected persons, however, 5 households are losing more than 50% of their total landholdings and are considered vulnerable under this project.

Table 8: Socio-economic Profile of Affected Households at Landfill Site SN Plot owners’ HH Size Education Occupation Annual income*(In NPR) Vulnerability status Name

Total F M Illit FL/pri Lower Primary Secon. HH/yr Per capita/ yr mary second and above

1 7 3 4 Lit Agri Business 290,000.00 41,428.57 Losing more than 50% of total landholdings.

2 5 2 3 illi Agri Wagelabor 112,700.00 16,100.00

3 4 2 2 Lit Agri

4 4 2 2 Lit Agri Ricksaw rent 130,300.00 32,575.00

5 7 3 4 Lit Agri

6 15 6 9 Service Agri Oversee r (12 class)

7 5 2 3 Lit. Agri

8 7 4 3 Lit. Agri

9 9 4 5 12 class Agri Buffalo for milk- 194,900.00 21,655.55 Losing more than 50% of total landholdings.

10 5 2 3 7 class Agri Losing more than 50% of total landholdings.

SN Plot owners’ HH Size Education Occupation Annual income*(In NPR) Vulnerability status Name

11 7 3 4 10 class Agri Business 679,250.00 97035.71 (houserent, tractor rent )

12 13 5 8 Literate Agri. Business (tractor 146,000.0 11,230.76 Losing more than rent ) 50% of total landholdings.

13 3 1 2 12 class Agri Losing more than 50% of total landholdings.

Total 91 39 52

VI. CONSULTATION, INFORMATION DISSEMINATION AND DISCLOSURE

A. Summary of Public Consultation

24. Consultations were conducted with primary (e.g., affected persons) and secondary stakeholders (e.g., municipality and DUDBC). As the APs are part of the municipality, they welcomed proposed improvements brought about by the project. The landowners were willing to render support and expect a proper compensation package and employment opportunities (Appendix 1 includes List of Persons Met). Two public consultation meetings at the project site Chapkaiya and landfill site in Musaharwa were conducted.

25. The public consultation meeting conducted with landowners in Chakaiya treatment plant suggests that: (i) Unless the land is purchased by the project, the name of these landowners is tentative and the name of landowners can change any even the parcel number; and (ii) The owners of land could be changed anytime as the land is purchased and sold in the area frequently. When the public consultation was done with the landowners of Chapkiaya municipality, they mentioned that they could hold the land for the project for 3-6 months only with an advance of 25 percent payment of the cost of land in advance (see public consultation report of landowners in Chapkaiy locality.

26. The public consultation meeting conducted with landowners in the landfill site in Musharwa and Itiyahi suggests that: (i) Land is available in the area with the market value of land; (ii) A detailed engineering design with all its positive and negative impacts should be presented in front of all stakeholders including the village people; and (iii) Landowners cannot hold the land for the project component for long period unless the land is purchased in the earliest time possible.

27. Also, as most of the affected persons in the area also conduct business, many of the APs expressed interest in cash compensation. At the time of public consultation, most of them mentioned that they want to put this money in business. For them business is more rewarding than doing agriculture. The above comments are addressed in the RP/IPP and continued consultations at detailed design will occur.

B. Continuation of Public Consultations

28. Consultation will be undertaken prior to finalization of detailed design and during implementation. Consultations during RP/IPP implementation will involve agreements on compensation, assistance options, and entitlement package and income restoration. Consultation and participation activities will continue throughout project implementation to monitor APs and appropriate actions taken if determined necessary by local the PIU. The PIU at the municipality in implementation of the RP/IPP to ensure the entitlements of the RP/IPP are delivered satisfactorily and prior to land acquisition and commencement of civil works.

C. Disclosure of RP/IPP

29. For the benefit of the APs, the Nepali version of a summary RP/IPP will be made to the affected persons, with a copy maintained by the PIU. A copy of the RP/IPP (draft and final) will be disclosed in ADB's website.

VII. GRIEVANCE REDRESS MECHANISMS

30. Any grievances and objections will be referred to the Grievances Redress Committee (GRC). The constitutional basis of the Grievance Redress Committee (GRC) for RP/IPP activities is Clause 11 of the Land Acquisition Act of Nepal 2034 (1977). The Act assigns CDO as the sole responsibility to chair land acquisition activities. In keeping with the legal provision mentioned in the Act, the basic process of grievances redressal to be undertaken under the Project will be as follows: (i) Decisions should be given within fifteen days after receiving the grievances. (ii) Further processing of the grievances or any decision should be taken only after consultation with the CDO and also the Project Officer, if deemed necessary. (iii) Ministry of Home Affairs can exercise legal authority through the District court while investigating in the matter of such grievances.

31. When plot owner and municipality negotiate directly and come to mutual agreement, GRC as per the LAA is not required. In these cases, the Project will form its own Project GRC formulated by the municipality, if necessary. The project formulated grievance mechanism will be split into three phases: In the first phase, a GRC chaired by EO will come up with remedial measures. Only if the complainant is not satisfied with this decision, the issue will be brought up to the municipal board, as the second phase. If the person is still not satisfied, then he/she can go to either the court or MPPW, as a third phase. This is illustrated in the figure below.

32. The project manager of the PIU is to activate the project GRC. This process is not to supersede or impeded on the country's formal grievance processes. The GRC will meet as needed to determine the merit of each grievance, and resolve grievances within a month of receiving the complaint. The GRC with a minimum of three members will be headed by the Executive Officer. Members of the committee may also include local government representative (VDC, DDC), representatives of APs with one male and one female, a representative of vulnerable people’s organisations active in the area concerned, social safeguards consultant, the NGO, and a representative from the Project. The Committee thus appointed should be sanctioned by the municipal board. The time bound GRC process is illustrated in the figure below.

33. Complaints should be addressed to the PIU or municipality. The PIU will keep records of all grievances received including: contact details of complainant, date the complaint was received, nature of grievance, agreed corrective actions and the date these were effected, and final outcome. The GRC should provide the concerns of the complainants on issues relating to negative and physical impacts that they conceive would occur by the implementation of the particular project sub-component. All complaints should be signed with complete information on name, contact address, phone number if any so that the person can be contacted when required. An acknowledgement to the effect that the complaint has been received by the coordinator’s office should be promptly sent to the complaints. All complaints received should be first registered, categorized and prioritized. They should be analyzed and assessed the concerns raised by the affected parties and have discussion and consultation with them. Records of all such proceedings should be maintained, for future reference, and the attendance

23 of all participants with their signature, in particular the complaints and affected groups should be recorded. If grievances cannot be addressed, the matters are brought to higher authorities (which could be the municipal board, court or central government).

34. The various queries, complaints and problems that are likely to be generated among the APs and that might require mitigation, include the following: (i) APs not enlisted; (ii) Losses not identified correctly; (iii) Compensation/assistance inadequate or not as per entitlement matrix; (iv) Dispute about ownership; (v) Delay in disbursement of compensation/assistance; and (vi) Improper distribution of compensation/ assistance in case of joint ownership.

Flow Diagram for Conflict Resolution and Grievance Redress Mechanism D A Affected Party/Group Y S

Complaint 0 (0 Days)

Phase 1 7 Initial Assessment by GRC chaired by EO (7 Days)

14 Discussion with AP and AG (7 Days)

Finalize the Initial Inform the AP/AG 21 Assessment Ineligible about Ineligibility (7 Days) (7 Days)

Eligible Complaint

28 Formulating Remedial Cases beyond Jurisdiction Measures (7 Days) of Municipality (7 Days)

31 Discussion with APs to Inform Decisions (3 Days)

Municipal Board Consideration (7 Days)

Phase 2

Cases beyond Jurisdiction

Remedial Refer the Case Refer the Case Action to Higher to Higher Phase 3 40 & Authorities Authorities Monitoring (2 Days) (2 Days) (2 Days)

------Keep Municipal Board Informed 25

IV. LEGAL FRAMEWORK

A. Government of Nepal Laws

35. The Land Acquisition Act, 2034 (1977) is the core legal document to guide tasks related to land acquisition and resettlement activities in Nepal. There is provision in Clause 3 of the Act to acquire land for any public purpose, subject to the award of compensation. According to Clause 4, institutions seeking land acquisition may also request the Government to acquire the land under the regularity provisions subject to be compensated by such institutions' resources. Clause 27 of the Act provides for land acquisition through the mutual agreement with the plot owners, where the process of land acquisition as per Act is not required. The Act grants the plot owner the right to choose between a mutual agreement process, or the formal process for land acquisition (as described below). Where Clause 27 is enacted, and the plot owner is not satisfied with the compensation agreement offered, Clause 18 (sub-clause 2) states that the owner can file a complaint with the Ministry of Home.7

36. As per the regulatory provision, while acquiring land, the Government forms a Land Acquisition and Compensation Fixation Committee (LACFC) under the chairmanship of Chief District Officer (CDO) of the restrictive districts. The other members to be included in the Committee comprise of the Chief of Land Revenue Office (LRO), an Officer assigned by CDO, representative from District Development Committee (DDC), Concerned Project Manager, and VDC representative. The Project Chief functions as the Member Secretary of the Committee. In addition, it has become the practice to include representatives from the Affected Persons (APs).8 This practice of fixing compensation is known as Community Consensus Valuation (CCV). LACFC determines the amount of compensation considering the following factors: current price of land value, value of standing crop, houses, walls, sheds or other structures, loss incurred as a result of shifting residence or place of business, and consider relevant acts and periodic guidelines of the Government. According to Clause 6, if the land has to be acquired for institutions other than the local governance bodies and institutions fully owned by the government, the Committee has to consider the following in fixing the compensation amount: (i) Price of land prevailing at the time of notification of land acquisition; (ii) Price of standing crops and structures; and (iii) Loss incurred by the AP by being compelled to shift his or her residence or place of business in consequence of the acquisition of land.

37. As revealed in Clause 9 sub-section 3 of the Act, the duration of compensation days will be determined by LACFC. Clause 37 of the Act illustrates that the Committee may extend the period of additional three months, if compensation are not collected by those affected. After termination of extended three months period the amount will be deposited to the Government's account.

38. The compensation to be provided for land acquisition should generally be in cash as per current market value. However, there is also a provision under Clause 14 to compensate land- for-land provided government land is available in the area. The Act also envisages the possibility of two separate rates of compensation, distinguishing between families who lose all their land and those who lose only some part of their landholdings. As stipulated in the Clause 10 there is provision for the affected households to take the crops, trees and plants from land

7 Under the Project, a Grievance Redress Committee (GRC) will be set up for each subproject to address any complaints regarding the land acquisition process, therefore offering the AP another venue to express grievances. 8 Under the Project, a representative from the affected persons is required to be a member of the LACFC to ensure compensation for assets is at replacement value.

26 and salvageable from the structures. Clause 39 indicates options to allow the affected households to take all salvageable assets without deduction of any costs from the affected households.

39. Any grievances and objections will be referred to the Grievances Redress Committee (GRC) as per Clause 11 of the Land Acquisition Act, 2034 (1977). The Act assigns the CDO as the sole responsibility to chair land acquisition activities and to address the grievances related to the RP/IPP implementation activities.

40. Clause 20 of the Act authorises the legal tenant of land to receive 25% of total compensation cost. The tenant is entitled 100% compensation for the structure built on the land with the permission of the land owners. Clause 68 (1) of the Forest Act 2049 states that the government may permit the use of forest land for projects under the national priority. According to the clause 68 (2), if any loss to persons or community is involved while permitting use of such land, it is required to compensate the loss.

41. The typical process of land acquisition is indicated in Table 9.

Table 9: Process for land acquisition as per Land Acquisition Act S.No. Steps outlined in the LAA 1 Sectoral agency (DUDBC) decides to execute a development project at a certain location 2 Sectoral agency (DUDBC) requests the Government to acquire land specifying objectives and committing payments of compensation and other expenses 3 GoN approves and orders the initiation process and LACFC is formed 4 Public notification is made at public places in the project area, VDC offices and to the affected households 5 Necessary preliminary survey including boundary demarcation, agricultural production valuation and social census of affected families takes place 6 Land Revenue Office report on the area and location of land to be acquired including likely compensation and amount of loss 7 The local officer (CDO) issues notices including pRP/IPPof acquisition and detail of land to be acquired 8 Land transactions are banned within the notified area 9 Owner can file complaints within 7 days through the local officer 10 Resolution of grievance within 15 days of complaint 11 Acquisition of land and payment of compensation

B. ADB Safeguards Policy Statement (2009)

1. Resettlement

42. The three main elements of the ADB Safeguard Policy Statement (2009) are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least he same level of well-being with the project as without it. In addition, the absence of legal title to land should not be a bar to compensation. Vulnerable groups are entitled to special assistance. The table below compares the Government's and ADB's SPS.

LAR issues Provisions of Nepali Acts/Rules/Regulations ADB policy requirements Involuntary LAR Invoking eminent domain is only legally Eminent domain is generally recognized and subject to recognized when taking land for special needs of policy provisions aiming at avoiding and minimizing LAR the State (Land Reform Acts 1964, LAA 1977, and replacement of lost assets and rehabilitation of Town Development Act 1998, Land Act 1997 and livelihoods. APs to be at least as well-off as without Local Self Governance Act (998). These acts/rules project( Safeguard Policy Statement, 2009) do apply for any project where the land is acquired

LAR issues Provisions of Nepali Acts/Rules/Regulations ADB policy requirements involuntarily.

Property Rights Constitution of the Kingdom of Nepal 1990 and Clearly asserts rights of property of a person living in the Interim Constitution 2007 guarantees the property particular domain/area regardless of official tenure rights of a citizen Negotiated LAR The Civil Code of Nepal is the legal basis for Official recognition of negotiated LAR, where there is a contractual agreements on the transfer of land willing buyer and a willing seller. from APs to the government. Eligible APs Only registered land owners and tenants can Lack of formal legal title to land by any APs is not a bar transfer their titles to other persons recognized to entitlements. Titled, legalizable and non-titled APs are under the Land Acts/regulations. eligible to receive different entitlements. Titled and legalizable APs are entitled to compensation and Non-titled occupants of land as illegal possessors are not eligible to transfer the land occupied or rehabilitation. Non-titled APs are entitled to livelihood restoration, but may also receive replacement land. receive compensation. Non-titled APs are eligible for entitlements such that . they are no worse off than before the project. All APs are entitled to compensation at replacement cost of non- land assets. APs without possession or ownership certificate but occupying land in areas designated for land allocation or possession can be recognized as legalizable and thus are eligible for fair compensation and rehabilitation entitlements under the SPS.

Compensation for Contractually agreed payment for land transferred Land compensation at replacement cost based on land land to the government. Local practice applies the valuation at average market value within 1 year before government land valuation tariff but negotiation the delivery of compensation or replacement land of with with APs goes as well. A Compensation similar size and quality. Determination Committee is formed under the chairmanship of CDO to determine the price of the land acquired for the project. Replacement land may be provided if AP’s entire land or large part thereof is acquired.

Compensation for Contractually agreed payment for transfer of Valuation of structures is based on current market value, structures structures. The value of structures is determined i.e. replacement cost of new construction of the at market rates, with depreciation deducted from structure without deduction of depreciation. APs can be gross value of the structure. permitted to salvage materials.

Joint property The Civil Code recognizes common property No conflict with SPS. Joint signatures are encouraged. ownership ownership and family property rights. Common property ownership requires permission of other owners to dispose of part of the property. Family property includes ‘other properties accrued since the marriage, notwithstanding in which the name of spouses or family members the property is registered. Easement Legal provision for easements or property No conflict with SPS. (property servitude, allowing the use of another person’s servitude) property for specific public or private purposes is permitted under local law; mutual agreement and payment of a fee are required. Rental of land or Rental of land or other property is agreed between Lessee is considered a non-titled AP and eligible to house the owners and the tenant. Mutual agreement receive entitlements based on the type and degree of regulates the lease of property. If ownership is impacts. transferred the new owner incurs all rights and obligations of a lesser. No provisions for lessee rights in case of land acquisition for a project, except that termination of a lease requires 1 month’s notice Community and Affected community and public assets can be Common property resources or public structures and public resource transferred through contractual agreement under infrastructure affected by LAR are eligible for losses the Civil Code. compensation. The cost of moving affected infrastructure is included in cost of civil works under the Project. Income and No provisions in contractual agreements for Assistance for economic and social rehabilitation due to livelihood transfer of property; project specific contractual loss of jobs, incomes and livelihoods, including (i) rehabilitation agreement is made such as the Melamchi Water income compensation or support for the period of Supply Project. interruption of business or employment, and (ii) priority employment in project civil works, especially to poor and vulnerable households.

LAR issues Provisions of Nepali Acts/Rules/Regulations ADB policy requirements Relocation and The Nepali Law on Property Allocation Rights and Relocation and transfer expenses, including fees for the Transaction costs other related rights requires payment of registration of properties and other administrative registration duties and service fees for the charges, are part of the replacement cost of lost assets registration of immovable property with the State and included in compensation. Land Revenue Office (Mal) in the respective district. All registration and other fees, as well as cost of relocation, are responsibility of parties to a contract and can be included in a contract. Grievance The LAA 1977and other acts deal with disputes An adequate grievance redress mechanism for affected procedure over land. A Grievance Committeee will be be people is required. formed in the municipality office for settling disputes . If decision is not favorable to the client he /she can move to the courts for justice. LARP information There is a provision in the government’s IEE and APs are to be fully informed and closely consulted on disclosure and EIA regulations (1997) for public consultation and compensation and resettlement options. Draft, final and public consultation information disclosure mechanisms. revised LARPs are to be discussed, as well as published on ADB’s website. Cut-off date It is fixed considering the different components of An eligibility cut-off date is to be set when the project is land acquisition procedure including the cut off officially notified, the project area is delineated or the date for compensation census of the AP population is taken, to prevent influx of non-eligible persons and land speculation. Right- of- way Local area main streets require a 3.75m width for No conflict with SPS each lane as well as a sidewalk for each side (Construction Standard and Procedure of the DoR); in addition the ROW of local main streets is determined by-laws of each municipality. Supply of water drainage and sewerage system and their utility is also fixed by- laws of the municipality. Notification period Time period for vacating a property may be Cash compensation and/or replacement of assets must for vacating defined in the contract document . be completed before displacement; LAR procedures, property and Civil works commence in parallel with acquisition except for rehabilitation measures must be completed commencement of of property, but without defined waiting period. before commencement of civil works. works

43. There are several significant policy gaps between the Nepali legal framework (policy /act/regulation) and the ADB SPS Guidelines with respect to LAR. According to Nepali law/acts/regulations or practice: (i) Non-titled occupants of land (without ownership or possession certificate), including lessees of land and structures, are not eligible for compensation and rehabilitation entitlements. (ii) Compensation for affected land is based on a government compensation tariff and also the market rate, although there is room for negotiation with individual APs. (iii) A depreciation coefficient is applied in the valuation of affected structures. (iv) Income and livelihood rehabilitation is not normally considered in local LAR practice. (v) Transaction costs are not included in compensation payments. (vi) There are no project internal grievance procedures preceding dispute resolution by the district administration office and the courts; each project has set up their own grievance mechanism. (vii) An eligibility cut-off date is not clear cut in the laws. But EIA regulations of 1997 have set up the procedures for the cut –off- date.

44. The above gaps are addressed in this RP/IPP.

2. Indigenous People

45. Government of Nepal Indigenous/Nationality Act 2002. The complex social structure of ethnic and caste groups in Nepal makes it very difficult to define and place the country's indigenous people in the category described in ADB on involuntary resettlement. The Government of Nepal has not considered all cultural minorities as the indigenous peoples. The Government has defined indigenous groups and their number in the Indigenous/Nationality Act 2002. According to this Act indigenous or ethnic groups are a tribe, community or ethnic group having its own mother language and traditional rites and customs, distinct cultural identity, distinct social structure and written or unwritten history (NEFIN 2005). According to this Act, there are 59 indigenous groups/nationalities in Nepal who live in the various ecological settlements: Mountain, Hill, Inner Tarai and Tarai. The total population of these various groups, according to the 2001 Census, was close to 37% of the total population.These various groups of people are in various stages of socioeconomic development. The NEFIN (2005) has classified these various groups into five broad categories with their levels of socioeconomic development or the process of marginalization.

46. ADB Safeguards Policy Statement (Indigenous People). Appendix 3 of the ADB SPS sets out the IP policies and principles. The objectives are to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of projects, and (iii) can participate actively in projects that affect them. The Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the territories or natural or cultural resources that Indigenous Peoples own, use, occupy, or claim as an ancestral domain or asset. The term Indigenous Peoples is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by thers; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or region. In considering these characteristics, national legislation, customary law, and any international conventions to which the country is a party will be taken into account. A group that has lost collective attachment to geographically distinct habitats or ancestral territories in the project area because of forced severance remains eligible for coverage under this policy.

47. Most indigenous people in subproject areas are economically and politically integrated into the mainstream society, and considering the nature and scale of these subprojects, impacts on indigenous peoples are limited to a small number of involuntary resettlement and/or land acquisition. Therefore, an indigenous peoples plan has been combined into the draft resettlement plan, with special assistance measures for vulnerable groups including indigenous people. With improvement of sanitation services, the Project is expected to result in improved health benefits for indigenous people.

V. ENTITLEMENTS

A. Eligibility

48. All APs who are identified in the project-impacted areas on the cut-off date (survey date) will be entitled to compensation for their affected assets, and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-off date for titleholders will be the date of notification under the land acquisition act and for the non-titleholders will be the census date, i.e. October 2009, which is the first impact survey (Census and Inventory Survey). People moving in the area where the lands are to be acquired in subproject area after the cut-off date will not be entitled to any kind of compensation or assistance as per provision made herein. They, however, will be given sufficient advance notice, to vacate premises/dismantle in the case of affected structures prior to project implementation.

B. Entitlements

49. For this project, the entitlements listed in Table 10 for this subproject are derived from the Land Acquisition Act, 2034 (1977), the Land Reform Act 2021 (1964), and ADB Safeguard Policy Statement (2009). Following detailed design, the detailed measurement survey (DMS) of AP's land and/or non-land assets and detailed census survey will be used for determining actual impacts, and replacement cost surveys (or asset valuation) will be carried out. This information will be used to inform the LACFC cost determination, or used to inform the negotiation of land value between the municipality and plot owner. Under the Project, a representative from the affected persons is required to be a member of the LACFC to ensure compensation for assets is at replacement value. Where the replacement cost of the LACFC is lower than the market determined value, the municipality and/or government is required to pay the difference. In cases where plot owners directly negotiate compensation amounts with the municipality (as per the LAA), then the PCO will verify the satisfaction of the owner with the final amounts. In cases of disputes such as where land records are not updated or where the APs are unable to produce the desired documents, then the compensation amount will be deposited with the CDO till the case is disposed.

1. Indigenous People

50. IPs impacted by the project, although not considered economically or socially vulnerable (given the urban setting they are integrated into their surroundings) are considered as vulnerable groups requiring special consideration given their historical social exclusion. Therefore, special provisions to improve their lives is included in the Entitlement Matrix.

Table 10: Entitlement Matrix Type of Application Entitled Person Entitlement Implementation Issues Responsible Loss Institutions 1 Loss of Full/partial Owner(s) with Land-for-land arrangements, if government land available, As per the LAA, compensation for Municipality/PIU land permanent loss of legal title of equal productive capacity satisfactory to AP, or; land determined through either (i) /DSC/ homestead, mutual agreement with plot owner, LACFC/NGO agricultural, vacant Cash compensation equivalent to current market or (ii) the option to allow LACFC land rate/replacement value including provision for all fees determination of compensation. To (documentation fee, etc.), taxes, and other charges as be determined by plot owner. applicable under relevant laws. Under the Project, a representative 30 days’ advance notice to harvest standing seasonal from the affected persons is crops, if harvest is not possible, compensation for share of required to be a member of the standing crops at market rates LACFC to ensure compensation for assets is at replacement value. Cash compensation for perennial crops and timber valued trees based on market value If decided through mutual agreement, PIU to verify If no replacement land is available, HH members involved satisfaction of plot owner with in farming eligible for skill development training based on compensation amount If owner their need at the rate of NRs 5,000/person/HH9 not satisfied, then can raise with GRC. APs prioritized for project employment Harvesting prior to acquisition will be accommodated to the extent possible.

PIU (social development officer) and municipality to assist farmers in finding suitable replacement land to continue farming.

Value of crops/timber valued trees to be negotiated between landowner and municipality or determined by LACFC with advice from Agriculture Department

A list of working members of the affected family will be maintained

9 The training cost includes the cost of training allowance for affected households for the short term training on income generation for a period ranging 4 – 6 days @ Rs. 150 a day, which is Rs. 900. Other costs include the costs for training fee and logistic cost, where the cost of groups of trainees will be involved. The cost is therefore lump sum given as Rs. 5000. This is to be updated based on census at detailed design stage.

Table 10: Entitlement Matrix Type of Application Entitled Person Entitlement Implementation Issues Responsible Loss Institutions by PIU. Contractor to be encouraged to hire APs in project works.

NGO to provide skill training.

2 Loss of Livelihood/ income Business owner One-time lump sum grant of two-months10 income to NGO to provide skill training Municipality/PIU livelihood/ (s), tenant (s), business owner, leaseholder/tenant, based on the nature /DSC, Income leaseholder(s), and type of losses assessed on a case-to-case basis. LACFC/NGO employee(s), agricultural For employees: one-time financial assistance equivalent to worker(s), 30-days minimum wage rates to be within District for hawker(s)/ respective categories. vendors(s) Those losing main source of livelihood are eligible for skill development training based on need at the rate of NRs 5,000/person/HH.

APs eligible for project employment 3 Impacts All impacts Vulnerable APs Additional subsistence allowance equivalent to NRs Vulnerable households to be Municipality/PIU on (see Glossary for 10,000/HH11 for restoring or enhancing their livelihood. identified during detailed /DSC, vulnerable definition of measurement surveys conducted LACFC/NGO APs vulnerable Eligible for skill development training based on need at the as part of the RP/IPP. groups) rate of NRs 5,000/person/HH A list of vulnerable people will be

maintained by the PIU/. Contractor Vulnerable households will be prioritized in any project to be encouraged to hire project employment affected people for non-skilled Assistance in finding replacement land labor, prioritizing vulnerable APs.

PIU to assist those losing 50% or more of their total land holdings in finding replacement land

NGO to provide training.

10 Based on two months to find replacement income with advanced notice. 11 NRs 10,000 is based on common practice in Nepal for providing seed money to initiate income activities. The amount is valued at more than two months income at minimum daily wage rate (@150/day).

33 VIII. INCOME RESTORATION MEASURES

51. The landowners will lose a regular source of agricultural livelihood. The APs are engaged in agricultural activity and efforts are made in this RP/IPP to restore pre-project levels of income for these HH members. The APs will guided by the NGO in improving agricultural production in other lands including use of modern techniques in cultivation, harvesting and storing, if found necessary.

52. The APs are engaged in other income-oriented activities. The following are the income restoration measures for the APs as indicated in the entitlement matrix: (i) 30 days’ advance notice to harvest standing seasonal crops, if harvest is not possible, compensation for share of standing crops at market rates before construction activity begins; (ii) One-time lump sum grant of two-months agricultural income for agricultural production to landowners; (iii) Assistance from PIU and DSC in finding suitable replacement land for continuation of farming and if necessary, guidance in improving agricultural production on remainder of land; (iv) For vulnerable groups, additional subsistence allowance equivalent to NRs 10,000/HH for enhancing livelihood; (v) The vulnerable members will be prioritized in any project employment; and (vi) If replacement land not available to continue farming, the APs dependent on agriculture livelihood are eligible for medium-term income restoration activities which include skill development training based on need at the rate of NRs 5,000/person/HH.12

53. During the construction stage the affected household working members will be given preference over others in being engaged in activities suitable to their skills. In order to make the APs employable, the PIU and NGO will identify the required skills for the construction activities prior to the commencement of the construction and provide the required training to them. The contractor will be encouraged by the PIU to hire APs. Accordingly, the list of APs, will be provided to the contractor, for consideration in the project.

X. RESETTLEMENT BUDGET AND FINANCING PLAN

54. The resettlement cost estimate for this subproject includes eligible compensation for land and standing crops, assistance to vulnerable group, and training allowance: (i) Compensation for land and crops; (ii) One-time lump sum grant of two-months agricultural income for agricultural production; (iii) For vulnerable groups additional subsistence allowance equivalent to NRs 10,000/HH for enhancing livelihood; and (iv) If replacement land not available to continue farming, the APs dependent on agriculture livelihood are eligible for medium-term income restoration activities which include skill development training based on need at the rate of NRs 5,000/person/HH.

12 The PIU (through it's social safeguards consultant) and NGO will assess the capacity of the landowners prior to offering them any training.

34 55. The current market price of land per Katha in the subproject area is Rs. 6 lach for STP and Rs 3 lach for the landfill. This market rate was determined based on a survey of affected persons and conversations with other surrounding property owners (not affected by the project). The estimated total land cost (which is subject to change through negotiation process and detailed market research at detailed design) is Rs. 208,969,000.13 The plot ownership of the acquired land will be transferred to the municipality. The total costs including allowances is Rs 209,734,000.

56. The cost for hiring an implementing local NGO is part of the overall project costs and is therefore not needed to be included in the RP/IPP budget. Costs will be updated during implementation. The cost related to land acquisition and resettlement/rehabilitation cost will be borne by the municipality with the DUDBC ensuring all costs are met. The PCO is to ensure that APs are compensated prior to land acquisition and commencement of civil works. A detailed indicative budget is given below.

Table 11: Resettlement Cost for Birgunj Subprojects Sl. Rate per Item Unit Quantity Cost (NRs) No. Unit (NRs) A Compensation Per 1 Land Cost for STP 18,200,000 6 ha 108,000,000 ha14 Per 2. Land Cost for landfill 9,179,000 11 ha 100,969,000 ha15 B Assistance/Allowances Assistance to landowners for loss of farming 2 Month 10,00016 35 350,000 livelihood based on two months lost income 3 Training allowance to the affected landowners LS 5000 35 175,000 4 Additional assistance for vulnerable households LS 10,000 24 240,000 5 Compensation for valued trees (bamboo, fodder LS 1,490,000 trees, Sisoo)17 Total A+B 209,734,000 Grand Total NRs ($2,873,068) a if harvest is not possible for standing crops, cash compensation for crops (or share of crops) equivalent to prevailing market price

A. Implementation Schedule of Bigunj RP/IPP

57. The RP/IPP will be updated based on the detailed engineering design. ADB, MPPW, (through the Project Coordination Office in DUDBC) and municipality will approve the updated RP/IPP. Upon the approval, the RP/IPP will be disclosed to APs and arrangement for fixing the compensation through the LACFC or by the municipality as per the LA Act 2034.

58. The resettlement disbursement includes the issuance of identity cards (IDs), payment of all eligible assistance, and resettlement costs. The resettlement compensation must be paid prior to land acquisition and commencement of civil works.

13 1 katha = NRs 6 lach (600,000); 1 katha = 338 sqm; 1 ha = 10,000sqm; 1 ha = 30 katha; 1 ha = Rs 18,000,000; 16.72 ha = Rs 300,960,000. 14 Assuming an average of Rs.6.06 lacks per katha as the land is located within the municipality area. 15 Assuming an average of Rs.3.06 lacks per katha. 16 Based on estimated agricultural income of Rs 5000/month. To be updated based on census at detailed design stage. 17 Based on surveyed value costs for bamboo (Rs 60/tree), fodder trees (Rs 400/tree), Sisoo (Rs1000/tree). Costs subject to change during negotiation, market survey, or Department of Agriculture rates.

35 59. Internal monitoring will be the responsibility of DUDBC and the PIU within the municipality and will start early during the project when the implementation of the RP/IPP starts and will continue until completion of the subproject. The PMSC will confirm payment of compensation to RPs and smooth execution of the RP and will be carried out before the start of the construction and will be carried out intermittently as required.

60. The implementation of resettlement plan will be scheduled in line with the sub-project implementation. The schedule is subject to modification depending on the progress of the project activities.

61. In accordance with the LA Act 2034, the owners of the property to be acquired must be given minimum 15 days notice to allow them to claim for resettlement compensation and assistance (this does not apply if owner engages in mutual agreement with municipality according to the LAA). Taking into the consideration the time for each activity for the small number of affected households, the time for completion of RP/IPP implementation is planned for a period of minimum 2 – 3 months after updating of the RP/IPP. A tentative implementation schedule is given in the table below.

Table 12: Time Bound Schedule for RP/IPP Implementation18 Award for Detailed Contract Feasibility Study Civil Work Construction Design Bidding Contracts 1Q 2Q 3Q 4Q 5Q 6Q 7Q 8Q 9Q 10Q 11Q 12Q 13Q 14Q 15Q Resettlement Planning Approval of ♦ RP/IPP by ADB, municipality, and by MPPW Disclosure of ♦ ♦ RP/IPP Distribution of ♦ ♦ RP/IPP Report and summary Recruitment of ♦ NGO Socio-economic ♦ ♦ ♦ ♦ survey by DSC consultant and list of APs Issue of identity ♦ ♦ ♦ ♦ cards by PIU Identify and ♦ ♦ ♦ ♦ confirm poor and vulnerable APs Form Grivance ♦ ♦ Redress Committee Grivance ♦ ♦ Redressing Activities

Land Acquisition and Resettlement Announce start ♦ date of RP/IPP implementation through public notification

18 Implementation period is July 2010 to September 2015.

Award for Detailed Contract Feasibility Study Civil Work Construction Design Bidding Contracts 1Q 2Q 3Q 4Q 5Q 6Q 7Q 8Q 9Q 10Q 11Q 12Q 13Q 14Q 15Q Disburse ♦ compensation payment and assistance for relocation Handing over of ♦ lands for construction19 Livelihood and Income Restoration Disburse ♦ ♦ ♦ livelihood restoration assistance Organize skill ♦ ♦ ♦ development training for vulnerable APs Capacity All through the RP/IPP implementation period Building Internal All through the RP/IPP implementation period monitoring by PIU/PCO

IX. INSTITUTIONAL ROLES AND RESPONSIBILITIES

62. The Ministry of Physical Planning and Works (MPPW) will be the Executing Agency (EA), working through its Department of Urban Development and Building Construction (DUDBC), which will establish a project coordination office (PCO) for the Project headed by project director. The PCO will be staffed with a social development specialist to confirm smooth implementation of the RP/IPP and take corrective actions if necessary. Biratnagar, Birgunj Butwal and Kavre Valey municipalities will be the Implementing Agencies (IAs) for the subprojects, each with a project implementation unit (PIU) headed by project manager and staffed with a social development specialist. The PCO will ensure that the respective PIUs will update the resettlement plan during the detailed design stage and implement the final plan. In each municipality, a municipal project management committee (MPMSC) will be established in order to discuss project implementation issues, including land acquisition and resettlement issues, enhance collaboration among relevant departments and organizations, and expedite decision-making processes with an aim at achieving intended project output and outcome. MPMSC will be chaired by the executive officer20, and comprise relevant department heads of the respective municipality, chief of the divisional office of DUDBC, DWSS and other relevant government departments, a representative from district development committee, four members representing the local disadvantaged communities, NGOs, women's groups and the private sector, and the respective project manager working as secretariat.21

63. The PIU in the municipality will implement resettlement activities. The PMSC will also monitor the smooth implementation of RP/IPP. The PIU will work closely with the DSC- Resettlement Specialist consultant during detailed design to verify APs. The PIU will continue further consultation with APs during project implementation and solicit views regarding

19 For components not involving land acquisition, the handing over of project sites to the contractor will be possible from the first quarter. For the other components involving land acquisition and resettlement, the project sites will be handed over for civil works by the sixth quarter. 20 Composition will be reviewed if local election takes place. 21 Other members can be included, such as representatives from political parties represented in the local political mechanism, as deemed appropriate by the municipality concerned.

37 compensation, and relocation options. The PCO will verify the implementation of all RP/IPP requirements and confirm whether APs received entitlements as per the RP/IPP prior to the award of civil contracts. NGOs will be responsible for linking APs to relevant government programs related to social and economic rehabilitation. The PIU will submit quarterly progress reports to the PCO, who will then review and take corrective actions if necessary. The PCO will with assistance from the PMSC consultants consolidate their reports into semiannual monitoring and submit to ADB. These reports are to describe the progress of the implementation of resettlement activities and any compliance issues and corrective actions. In cases where the municipality and plot owner negotiate directly, the DSC-consultant and PIU will verify the satisfaction of the plot owner with the agreed compensation amount. NGOs will also facilitate necessary livelihood training as part of the rehabilitation measures. The PIU and PMSC are to ensure all RPs are implemented and ensure all entitlements are paid accordingly before land acquisition and commencement of civil works.

XI. MONITORING

A. Need for Monitoring

64. Monitoring is a major part of the resettlement management system to ensure its goals are met. RP implementation will be monitored internally. The RP/IPP implementation activities will be closely monitored internally by the PIU and PCO. This will involve: (i) administrative monitoring to ensure that implementation is on schedule and problems are dealt with on a timely basis; (ii) socio-economic monitoring during and after any resettlement impact utilizing baseline information from sub-project preparation; (iii) overall monitoring to assess AP status; and (iv) preparation of quarterly progress reports to be submitted to PCO by the PIU, reporting actual achievements against the targets fixed and reasons for shortfalls, if any.

65. The PIU will prepare quarterly progress reports on resettlement activities and submit to PCO. The PCO will with assistance from the PMSC consultants consolidate their reports into semiannual monitoring and submit to ADB. These reports are to describe the progress of the implementation of resettlement activities and any compliance issues and corrective actions. Reports to ADB should clarify whether or not resettlement goals have been achieved, more importantly analysis of whether livelihoods and living standards have been restored/enhanced (especially for vulnerable APs) is mandatory and suggestion of suitable recommendations for improvement must be made. Any problems or issues identified are followed-up (including recommendation of mitigation measures and supplementary budget); and learning from such issues must be recorded which would help to deal with issues such as these more effectively.

B. Internal Monitoring

66. The DUDBC through its PCO will be responsible for internal monitoring. The PIU will provide necessary oversight and monitor the RP implementation at the ground level and submit quarterly progress reports to PCO. Correct actions to be taken, if necessary. This will be done in coordination with the municipality.

67. The PIU will maintain a record of all transactions in their resettlement database, followed by entitlement records signed by AP and survey based monitoring of resettlement / land acquisition progress on a monthly basis. Monitoring will ensure:

(i) That all internal training of relevant safeguards staff occurred;

38 (ii) Verification that there are no outstanding or unresolved land acquisition issues with respect to the project and that property valuation and economic rehabilitation has been carried out in accordance with the provisions of the plan; (iii) Information campaign and consultation has been carried out with APs; (iv) Status of land acquisition and payments on land compensation; (v) Value of entitlement received is equal to that of original structure or land acquired; (vi) Effective utilization of entitlements received; (vii) Compensation for affected structures and other assets; (viii) Relocation of APs; if applicable; (ix) Payments for loss of income; (x) That all economic rehabilitation measures are implemented, as approved; (xi) Effective operation of both the Grievance Committees; (xii) Funds for implementing land acquisition and economic rehabilitation activities are available in a timely manner, are sufficient for the purposes, and are spent in accordance with the plan.

68. PIU will also be responsible for carrying out field level monitoring through: (i) Review of census information for all APs; (ii) Consultation and informal interviews with APs; (iii) In-depth case studies; (iv) Informal sample survey of APs; (v) Key informant interviews; and (vi) Community public meetings.

69. A performance data sheet will be developed by PCO to monitor the project at the field level. Quarterly monitoring reports will be prepared by PIU and submitted to the PCO for overall project level monitoring. Semiannual reports will be sent to ADB which report the progress of all aspects of resettlement activities. Monitoring and evaluation reports documenting progress on resettlement implementation and the completion report will be provided by the MPPW to ADB for review.

C. Reporting Requirements

70. The PIU will submit quarterly22 progress reports to the PCO, who will then review and take corrective actions if necessary. The PCO will with assistance from the PMSC consultants consolidate their reports into semiannual monitoring and submit to ADB. These reports are to describe the progress of the implementation of resettlement activities and any compliance issues and corrective actions. Any problems or issues identified are followed-up (including recommendation of mitigation measures and supplementary budget); and learning from such issues must be recorded which would help to deal with issues such as these more effectively.

22 DSC to submit monthly reports to PIU; PIU submits quarterly reports to PCO; PCO submits semi-annual reports to ADB.

Appendix 1 Consultation Summary and Persons Met Dates Municipality Name (names taken Position Issues discussed out to protect and opinions privacy) received Dates Birgunj Municipality Parsa District 06 Sep Sep., Acting Chief, Birgunj Project 2009 Municipality components and their locations, problems and issues in these locations , solid waste materials, squatters, poor and rag pickers Engineer “ Economist, Lecturer “ willingness to T.R.M. Birgun, collect data for RP 07 Sep. 2009 Geographer “, willingness to Lecturer , T.R.M. collect data for RP campus, Birgunj Squatter-farmer in Number of Dhank Motisar VDC, Bara family in the land fill site area( Bara) and their problems

08 Sep. 2009 Kalaiya Sub –engineer , Location of Municipality, Bara Kalaiya Municipality regional land fill District site, solid waste material, collaboration with Birgunj municipality and other issues , Kharidar( second “ class non-Gazetted Officer), Kalaiya municipality “ “ “ “ Central Member , “ Kaliaya Municipality? October 06, Biurgunj Acting Chief, Birgunj Location of 2009 Municipality Municipality different components of the project such as Public toilets and their location, Bus park area and Meena Bazaar area, discussion with the people of the area about toilets October 07, Nagwa Gaun area 5 farmers; 4 male Discussion with

Dates Municipality Name (names taken Position Issues discussed out to protect and opinions privacy) received 2009 of Birgunj and 1 female the farmers about municipality land price , crop production, willingness to sell the land; if good price , no problem of land acquisition December Proposed whole Discussed with 4 Land ownership, 06, 2009 sale vegetable male farmers who value of land per market area in own the alnd katha, and Ward 18, willingness to seel Laxmanwa , the land lis Birgunj available for whole sale vegetable market if good price is given for land. December Mdhagadawa , Discussed with 16 Collected the 07, 2009 Motisar VDC , war landless farmers ( basic No.9 squatters all male) socioeconomic living close by the information of land fill site squatters with the help of two RAs February Land fill site, FGD with 10 land Regarding land 18,2010 Musaharwa , Ward owners and 7 acquisition, and No.0 9 Bisrampur respected citizens of compensation and VDC the area ( all male) suggestions for the process of land acquisition; details of this FGD are presented separately February 19, Chapkaiya, FGD with 13 land Regarding land 2010 Treatment plant owners (male) and 2 acquisition and area, Birgunj respectable citizens compensation and of the area (male ) suggestions for the process of land acquisition; details of this FGD are presented separately

DUDBC, Kathmandu 15 June , Kathmandu Chief Information Soci al and poverty 2009 Officer, MUAN, mapping, current Dilli Bazar activities of MUAN in relation tom town development 17 June, Division Chief, UEIP Land pooling and other 2009 ,DUDBC issues 17 June, Division Chief , How land could be 2009 DUDBC obtained for UEIP projects ; land acquisition and poverty issues 19 June, Division Chief , Problems in land 2009 DUDBC acquisition, why there

was delay in land acquisition in UEIP? 22 June Under Secretary, Gender issues and ,2009 Ministry of women, Gender Focal Point; Children and Gender mainstreaming Social Welfare and gender related policies 22 June Member National Poverty mapping , ,2009 planning development of towns Commission and other related issues 22 June,2009 Vice chairman, Context, issues and NEFIN policies of development of indigenous peoples; Mapping of indigenous populations 22, June , Researcher , NEFIN “ 2009 23 June , Executive Director, Slum vs. squatter 2009 Lumanti populations in Nepal and urban settlements Surveys done by Lumanti on squatters 23 June Researcher , “ ,2009 Lumanti 28 June Project coordinator Discussion on various ,2009 from DUDBC components of the project, poverty and social mapping 29 June, Section Head,UDLE Poverty mapping ; 2009 methodology used in poverty study, technical and capacity building programs for municipalities f