40075-023: National Trade Corridor

Resettlement Plan

February 2014

PAK: National Trade Corridor Highway Investment Program (NTCHIP)

Faisalabad–Khanewal Motorway Project (M-4) Updated LARP of Interchanges of Section 1 comprising Faisalabad–Gojra Section

Prepared by National Highway Authority for the Asian Development Bank.

This resettlement 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. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Abbreviation Description AD Assistant Director ADB Asian Development Bank APs Affected Persons CoI Corridor of Impact CBO Community Based Organization DCR District Census Report DD Deputy Director DDO(R) Deputy District Officer (Revenue) EDO Executive District Officer EIA Environmental Impact Assessment EMP Environmental Management Plan Ft. Feet GM General Manager GoP Government of Pakistan IP’s Indigenous People Km. Kilometers LAA Land Acquisition Act, 1894 LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan M-4 Faisalabad-Multan Motorway M&E Monitoring and Evaluation MFF Multi-Tranche Financial Facility NTC National Trade Corridor NGO Non-Governmental Organization NHA National Highway Authority PMU Project Management Unit RoW Right of Way RPF Resettlement Policy Framework

R.ft. Running Feet

S.ft. Square Feet

SPS Safeguard Policy Statement 2009

TABLE OF CONTENTS

LIST OF ABBREVIATION i

EXECUTIVE SUMMARY 1

SECTION 1 – PROJECT DESCRIPTION

1.1 Project Background 9 1.2 Description of the Project 9 1.2.1 Interchanges 10 1.3 Need for LARP 12 1.4 Land Acquisition and Resettlement (LAR) Conditions 12 1.5 Alternative Analysis 12 1.5.1 No Project Option 12 1.5.2 Construction of Interchanges 13 1.5.3 Design Alternatives considered minimizing LAR Impacts 13 1.5.4 Exit/Entry Loops Carriageway with Land Acquired within Loops 14 1.6 Status of Land Acquisition and Resettlement Activities 14

SECTION 2 – SCOPE OF LAND ACQUISITION AND RESETTLEMENT

2.1 Objectives of Land Acquisition and Resettlement Plan 16 2.2 Scope of LARP 16 2.3 Cut-Off Date 16 2.4 Scope of Land Acquisition 17 2.5 Loss of Cropped Area 19 2.6 Loss of Trees 20 2.7 Loss of Structures 21 2.8 Loss of Other Assets 23

SECTION 3 – SOCIOECONOMIC INFORMATION AND PROFILE

3.1 Information/Data Collection Methodology 24 3.2 Census of APs / and their Assets 24 3.3 Socioeconomic Baseline Survey 25 3.4 Demographic Profile of the Project Area 25 3.4.1 Population of the Project Area 25 3.4.2 Settlement Pattern and Family Life 25 3.4.3 Conflicts Resolution Mechanism 26 3.4.4 Commerce and Industry 26 3.4.5 Socioeconomic Characteristics/Profile of the Project Corridor 26 3.4.6 Land types and Land use Pattern in the Project Corridor 26 3.4.7 Population 27 3.4.8 Housing Characteristics 28 3.4.9 Household Size 28 3.4.10 Available Social Amenities in the Project Corridor 29 3.4.11 Education Facilities 29 3.4.12 Educational Status in the Project Area 30 3.4.13 Health Facilities 30 3.5 Socioeconomic Status of the AP’s 30

3.6 Occupation and Income Analysis of AP’s 30 3.6.1 Vulnerable AP’s 31 3.7 Gender Issues and Analysis 31 3.7.1 Educational Status of Women 31 3.7.2 Access to Health Facilities 32 3.7.3 Project Impacts on Women’s Mobility and Access 32 3.7.4 Power of Decision at Household Level 33

SECTION 4 – INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

4.0 General 34 4.1 Identification of Stakeholders 34 4.2 Public Consultation in the Project Area 34 4.3 Findings of Group Discussion 35 4.4 Disclosure of LARP 37

SECTION 5 – GRIEVANCE REDRESS MECHANISMS

5.0 Grievance Redressal/Resolution Mechanism 38 5.1 First Level of GRM 38 5.2 Second Level of GRM 39 5.3 Constitution and Function of the GRC 39

SECTION 6 – LEGAL AND POLICY FRAMEWORK

6.1 General 41 6.2 Legal Framework 41 6.2.1 Pakistan’s Law and Regulations on Land Acquisition and Resettlement 41 6.3 ADB’S Involuntary Resettlement Safeguards 43 6.4 Comparison of Key LAA (1894) and ADB Policy Principles and Practices 43 6.5 Remedial Measures to Bridge the Gap 44 6.6 Compensation Eligibility and Entitlements 45 6.6.1 Eligibility 45 6.6.2 Assessment of Compensation Unit Values of Land at Replacement Cost Basis 45 6.6.3 Assessment of Compensation Unit Rate for House Building/Structures 46 6.6.4 Assessment of Compensation Unit Values of Crops 46 6.6.5 Assessment of Compensation Unit Values of Trees 47 6.7 Land Acquisition Process in Punjab under LAA 1894 47 6.7.1 Land Acquisition Process for Interchanges and Achievement of Main Milestones 49

SECTION 7 – ENTITLEMENTS, ASSISTANCE AND BENEFITS

7.1 General 51 7.2 Compensation Eligibility 51 7.3 Compensation Entitlements 51 7.3.1 Owners of Land 52 7.3.2 Owners of Tube wells/Shops 52 7.3.3 Owners of Houses / Residential Structures 52 7.3.4 Income Restoration and Rehabilitation Assistance for Loss of Employment 52 7.3.5 Relocation Assistance for Rehabilitation 53 7.3.6 Crop Losses to Affected Agricultural Land within the Row 53

7.3.7 Trees 53 7.3.8 Assistance for Vulnerable People 54 7.3.9 Entitlement Matrix 54

SECTION 8 – RELOCATION, REHABILITATION AND INCOME RESTORATION

8.1 General 56 8.2 Relocation of APS 56 8.3 Rehabilitation of AFs/ APs 57 8.4 AP’s Income Restoration 58 8.4.1 Livelihood Allowance 58 8.4.2 Transitional Allowance 58 8.4.3 Project- Related Employment 58

SECTION 9 – RESETTLEMENT BUDGET AND FINANCING PLAN

9.0 General 59 9.1 Components of the Cost Estimates 59 9.2 Compensation Costs (CC) 59 9.2.1 Land Acquisition Costs 59 9. 2.2 Cost of Affected Structures 61 9.2.3 Tree Losses 62 9.2.4 Crops Compensation 62 9.2.5 Asset Losses 63 9.2.6 Livelihood Allowance for the Affected Households 63 9.2.7 Business/Transition Allowance 63 9.2.8 House Rent Allowance 63 9.2.9 Transportation/Shifting Allowance 63 9.2.10 Electricity Allowance 64 9.2.11 Vulnerable People Allowance 64 9.3 Monitoring and Evaluation 64 9.4 Administration Cost 64 9. 5 Contingencies 64 9.6 Taxes 64 9.7 LARP Implementation Budget Estimates 65

SECTION 10 – INSTITUTIONAL ARRANGEMENTS

10.0 Background 67 10.1 Land Acquisition & Resettlement Unit 67 10.1.1 Organization of PMU/LARU 68 10.1.2 Functions of LARU/PMU 68 10.1.3 LARP Preparation 68 10.1.4 Tasks/Terms of Reference 70 10.2 Contractors 72 10.3 Coordination Initiatives 72 10.4 Conclusion 73

SECTION 11 – IMPLEMENTATION SCHEDULE

11.1 Introduction 74

11.2 Schedules for LARP Implementation 74 11.2.1 LARP Preparation Phase 74 11.2.2 LARP implementation and Monitoring Phase 74 11.3 LARP Implementation Schedule 75

SECTION 12 – MONITORING AND REPORTING

12.1 Need for Monitoring and Reporting 78 12.2 Internal Monitoring 78 12.3 Monitoring by External Expert 79 12.4 Reporting Requirements 80

LIST OF TABLES

1.1 Locations of Interchanges 2.1 Mouza-Wise Summary of Affected Land and Owners 2.2 Summary of Land Acquired 2.3 Details of the Land Owners and Lease Holders 2.4(a) Type of Land Acquired 2.4(b) Scale of Impacts on Privately Owned Land 2.5 Summary of Cropped Area 2.6(a) List of Non-Fruit Trees 2.6(b) List of Fruit Trees 2.7 Mouza-wise Summary of Affected Structures with Respect to total Covered Area, Affected Area and Extent of Impact 2.8 List of Affected Assets 2.9 Interchange-wise Summary of Multiple Impacts 3.1 Land Use Pattern in Village along the Project Corridor 3.2 Average Crop Yield in Project Area 3.3 Population of Project Corridor–2012 3.4 House Construction Type 3.5 Household Size 3.6 Social Amenities 3.7 Educational facilities in the Project Area 3.8 Educational Status 3.9 Professional and Income Analysis of the AP’s Monthly Expenses 3.10 Educational Status of Women of the Project Area 3.11 Women Access to Health Facilities 3.12 Power of Decision Making at Household Level 4.1 Detail of Public Consultations (Section-1) Interchanges 5.1 Grievance Resolution Process 6.1 Salient Features of the LAA-1894 and Successive Amendments 6.2 Comparison of LAA and ADB’s IR Policy 6.3 Mouza-wise Unit Rate of Land recommended by DPAC 6.4 Category Wise Rate (RS) per SFT (April 2012) 6.5 Unit Rates of Crops 6.6 Detail of Notifications, DPAC and Award for Interchanges Section-1 7.1 Entitlement Matrix 8.1 Relocation Budget for the Affected Structures 9.1 Summary of Affected Land and Costs

9.2 Summary of Affected Structure Costs 9.3 Summary of Affected Non-Fruit and Fruit Trees 9.4 Summary of Crop Compensation for Affected Persons 9.5 Cost of Affected Assets 9.6 Summary of Vulnerability Allowance 9.7 Summery of Budget

FIGURES

1.1 Alignment Layout Plan 11.1 LARP Implementation Schedule for Interchange 2 and 3 11.2 LARP Implementation Schedule for Interchange 1 (Aminpur)

ANNEXURE

I List of Affected Fruit and Non Fruit trees II Identification of Affected Structures III–V Mouza-wise List of Affected People with Details of Impacts VI Pre-Structured Questionnaire VII Office Order No 1(1)/NHA/EALS/2009/26 dated 8-10-2009 VIII Unit Rates of Land, Trees and Crops and Structures IX Compensation of Affected Structures X AFs Losing Livelihood Sources XI AP Wise List of Land Compensation XII Detailed Cost Estimation of the Trees on the Basis of their Girth Sizes and Fruit Trees XIII AP-wise List of Crop Compensation XVI Detailed Estimation of Affected Assets

GLOSSARY

Terms Definitions Compensation. Payment in cash or in kind for an asset or a resource that is acquired or affected by a project at the time the asset needs to be replaced. Cut-off date. The completion date of the census of project-displaced persons is usually considered the cut-off date. A cut-off date is normally established by the borrower government procedures that establish the eligibility for receiving compensation and resettlement assistance by the project displaced persons. In the absence of such procedures, the borrower/client will establish a cut-off date for eligibility. Displaced persons. In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihood) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Economic displacement. Loss of land, assets, access to assets, income sources, or means of livelihood as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Eminent domain. The right of the state using its sovereign power to acquire land for public purposes. National law establishes which public agencies have the prerogative to exercise eminent domain. Entitlement. Resettlement entitlements with respect to a particular eligibility category are the sum total of compensation and other forms of assistance provided to displaced persons in the respective eligibility category. Expropriation. Process whereby a public authority, usually in return for compensation, requires a person, household, or community to relinquish rights to land that it occupies or otherwise use. Highly complex and Projects that ADB deems to be highly risky or contentious or involve serious sensitive projects. and multidimensional and generally interrelated potential social and/or environmental impacts. Host communities. Communities receiving physically displaced persons of a project as resettlers. Income restoration. Re-establishing productive livelihood of the displaced persons to enable income generation equal to or, if possible, better than that earned by the displaced persons before the resettlement. Kacha A house is considered kacha, if both the walls and roof of the house are made of material that includes grass, leaves, mud, un-burnt brick or wood Meaningful consultation. A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. Mouza A demarcated territorial unit for which separate revenue record including a cadastral map is maintained by the Revenue Department

Terms Definitions Physical displacement. Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Pacca A house is considered pacca, if both the walls and roof of the house are made of material that includes tiles, cement sheets, slates, corrugated iron, zinc or other metal sheets, bricks, lime and stone or RBC/RCC concrete Replacement Cost. Replacement cost involves replacing an asset at a cost prevailing at the time of its acquisition. This includes fair market value, transaction costs, interest accrued, transitional and restoration costs, and any other applicable payments, if any. Depreciation of assets and structures should not be taken into account for replacement cost. Where there are no active market conditions, replacement cost is equivalent to delivered cost of all building materials, labor cost for construction, and any transaction or relocation costs. Relocation assistance. Support provided to persons who are physically displaced by a project. Relocation assistance may include transportation, food, shelter, and social services that are provided to the displaced persons during their relocation. It may also include cash allowances that compensate displaced persons for the inconvenience associated with resettlement and defray the expenses of a transition to a new locale, such as moving expenses and lost work days. Rehabilitation Assistance provided to affected persons to supplement their income losses in order to improve, or at least achieve full restoration of, their pre-project living standards and quality of life Replacement cost Amount needed to replace an asset at prevailing market prices Squatters PeoplePeople without without legal legal title title to toland land and/or and/or structures structures occupied occupied or or used used by by them. them. ADB’s policy explicitly states that such peo ADB’s policy explicitly states that such people cannot be denied compensation based on the lack of title Vulnerable APs Distinct groups of people who might suffer disproportionately from resettlement effects. They are the households below poverty line or will become below poverty line as result of loss to assets and/or livelihoods, female headed households, or disabled persons

EXECUTIVE SUMMARY

A. Project Background

1. This Updated Land Acquisition and Resettlement Plan (LARP) relates to a land acquisition process that has already largely been completed. The LARP is now updated to ensure full consistency with ADB’s Safeguard Policy, particularly in relation to the provision of full replacement cost.

2. Government of Pakistan has given major emphasis to the building of new Motorways and improvement of existing roads to dual carriageways. Faisalabad to Khanewal Motorway (M-4) is a step in this direction under the overall National Trade Corridor Highway Investment Program (NTCHIP). The Asian Development Bank (ADB) has provided funding to the Government of Pakistan (GOP) for implementation of the project through a Multi-tranche Tranche Financing Facility (MFF). The loan for M4 project (Ln # 2400), section 1 was approved in 2008. The Section 1 of M4 comprises (i) a carriageway of 58 km section from Faisalabad to Gorja districts, and 4 interchanges within the carriageway. The MFF’s land acquisition and resettlement framework (LARF) was approved in 2007. Keeping in view the approved LARF, Pakistan’s Land Acquisition Acts of 1894 (LAA), and the requirements of ADB’s, Involuntary Resettlement Policy of 1995, the LARP for section 1 was to be prepared in two parts; 1st part covering the carriageway and second covering the 4 Interchanges, only. LARP of carriageway was prepared/ approved in 2009, which is now at an advanced stage of implementation.

B. Preparation of LARP

3. The National Highway Authority (NHA) is the project execution agency (EA), and following NHA’s full endorsement of section 1 LARP, construction of carriageway; four lanes dual carriageway with New Jersey Barrier as median with land (110 m wide right of way (ROW) already acquired is under progress, while LARP implementation is also nearing completion.

4. This document presents the LARP of “Interchanges” which has been prepared by NHA based on the final implementation-ready design of the interchanges. The LARP covers all the 4 interchanges, namely Aminpur Interchange, village 59 JB located at Faisalabad–Aminpur road, (ii) Chiraghabad interchange, villages 303 JB & 336 JB, located at Faisalabd-Jhang road, (iii) Sir Mehdi Shah interchange, village 303 JB, located at Gojra-Jhang road, and iv) Kamalpur interchange at Faisalabad–Chiniot road. Land for Kamalpur interchange (interchange # 4) was acquired by NHA several years ago for M3 project, outside ADB’s financing of M4 project. The Kamalpur land is fully in NHA’s possession, unencumbered (as confirmed by ADB’s DDR). The due diligence review of social safeguards for Kamalpur interchange confirms that there are no LAR issues whatsoever outstanding. This LARP therefore covers 3 interchanges; (i) Aminpur interchange, (ii) Chiraghabad interchange, and (iii) Sir Mehdi Shah interchange for which land has been recently acquired. Delay in preparation of LARP was due to the delay in finalization of the design of interchanges. NHA now has the implementation-ready designs available for all 3 interchanges, based on which the LARP has been prepared by NHA with endorsement of its full implementation. The LARP is fully in conformation with ADB’s IR Policy of 1995, LAA and the LARF. Where required, NHA may follow section-by-section implementation/construction approach, as the interchanges are located at different places away from each other, and may have different readiness level in terms of land acquisition and payment of compensation to the APs. Nevertheless, section by section approach would be applied strictly in accordance with LAR conditions of MFF as mentioned in approved framework.

5. Construction of these interchanges is covered under the loan agreement for Tranche-1 project as integral component of M-4 Section-1.

6. This LARP has been prepared for the component of “Interchanges” under Section 1 of M4. Of the total 4 interchanges, this LARP covers 3 interchanges. The 4th interchange does not involve land acquisition and or any resettlement issues. For compensation of lost assets the unit rates used in this LARP for all the three interchanges are approved by the Punjab Board of Revenue based on the market rate derived from registered land transactions plus 15% compulsory acquisition surcharge. Livelihood restoration allowance of 10%will also be paid to the affected persons (APs) to comply with ADB’s requirement of replacement cost as mentioned in ADB’s IR Policy and agreed in the land acquisition and resettlement framework, FAM and Loan Agreement.

7. This LARP has been prepared by the National Highway Authority based on 100% census of losses of Displaced Persons (APs) of interchange including land, structures, trees and assets; A socio-economic survey of 25% APs was also carried out that included several rounds of meaningful consultations with APs, including meetings, interviews, and focus group discussions (FGDs). The primary objective of the LARP is to provide necessary details for compensation, resettlement and rehabilitation for the APs of interchanges by identifying (i) the extent of losses; (ii) the policy framework for compensation payments, income restoration, relocation and rehabilitation; (iii) mechanisms for timely disclosure of information to the APs and other stakeholders (iv) institutional framework for participation and implementation; (v) grievance redress mechanism (GRM) and (vi) responsibilities for monitoring the implementation process (vii) resettlement budget and implementation schedule.

8. The Project impact survey reveals that 57.62 acres of privately owned cultivated agricultural land will be affected due to construction of all three interchanges. While the number of affected houses and business structures is 05respectively requiring relocation.

Table 1: Interchange-wise Summary of Multiple Impacts

ser Tree Tree Total Total Trees Trees Tree & Tree & Village Lea Land & Land & Leaser & Structure Structure Structure Structures Structures Landowner Landowner Land &Tree Interchange Interchange 59 JB Interchange-1 (Aminpur) 25 00 00 05 00 01 01 01 33

334 JB Interchange-2 9 0 0 2 0 0 00 00 11 (Chiraghabad) 336 JB 16 0 1 2 0 0 00 00 19 Interchange-3 303 JB (Sir Mehdi Shah) 72 7 0 10 2 1 00 00 92 Total 122 07 01 19 02 02 01 01 *155 * Total number of AFs is 155 and they need to be compensated for land and other affected assets including allowances under ADB’s IR policy. The number 155 includes the 04 units of state owned land.

9. The total number of Affected Families (AFs) comes to 155 with 900 APs. This includes owners of land, structures, trees and those having leases on government land. In addition to these impacts, the project will affect 329 timber trees and 89 fruit trees with crops cultivated on the affected agricultural land.

10. The census survey of the AFs commenced on 13 March 2011 and completed on 25 March 2011. The publication of notification of Section-4 date was established as cut-off date under the project to determine the eligibility for compensation. Any person moving into the RoW after cut-off date (i.e. December 01, 2010 for interchanges ii & iii and 15 September 2012 for interchange-I) is not eligible for project entitlements and compensation. However, such persons will be given prior notice for removal of any structure/asset, built after cut-off date, from ROW, and will be allowed to salvage the salvageable material. An entitlement matrix has been prepared to ensure that all losses (land and non-land) of are fully compensated at full replacement costs. During LARP preparation community participation is ensured through a structured consultative process and disclosure of LARP provisions has been carried out.

11. The eligibility and compensation entitlements were determined based on the assets lost by the AFs falling in the interchanges. The assets lost are required to be compensated at full replacement cost.

C. Rate of Compensation

12. Land Acquisition Act (LAA) and Board of Revenue (BOR) Methodology: The BOR uses Pakistan’s LAA 1894 for acquiring land and fixing compensation at market rate for land. Under LAA/BOR methodology, market rate is derived from the registered land transactions-a year before the date announcement of section 4 of LAA, Additionally total of 15% compulsory acquisition surcharge or solatium is also paid over and above the transaction based market rate.

13. Replacement Cost (RC) Methodology: The ADB IR policy requires compensation at full replacement cost that includes fair market value plus, transaction costs, interest accrued, transitional and restoration costs, and other applicable payments without depreciation of structures and assets. The policy also requires qualified and experienced experts to undertake valuation of land and assets.

14. The tables (A and B) below provide a comparison of the two valuation methodologies; BOR/LAA vs. RC; identify discrepancies in valuation basis/factors and price differential to be paid as additional or supplementary compensation.

Table A: National Methodology – LAA/BOR Methodology LAA/BOR Methodology Factors considered in valuation Remarks LAA/BOR Methodology to a. Average sum of registered land prices a. Compensation is only for determine (fair/average) recorded in the year before affected assets. market value of land announcement of section 4, i.e. 2009–10 b. Factors like transitional and b. Compulsory acquisition surcharge or a restoration costs, and income solatium of 15% over and above land restoration and rehabilitation compensation aspects not considered in the law

Table B: Replacement Cost Methodology RC Methodology Factors considered in valuation Remarks Rate of compensation be a. Fair market value, a. Fair market value, costs of land calculated at full b. Transaction costs, transactions and rehabilitation replacement costs. c. Interest accrued, and resettlement aspects d. Transitional and restoration costs, and considered including the e. Other applicable payments, e.g. allowances to achieve RC. allowances to support livelihood restoration and vulnerability aspects of the poor APs.

15. Payment of Compensation at Full Replacement Cost: The compensation fixed by Punjab BOR for all the 3 interchanges is Rs.45.88 million. The independent valuation study carried out by Colliers International concludes the need for payment of Rs.2.926 to the APs as additional allowance to meet the price differential between BOR price and RC, and comply with ADB’s requirement of RC. The BOR compensation together with price differential of Rs.2.926 million and other allowances as mentioned in the entitlement matrix (table 2) below will be paid to all eligible APs to comply with LAA and ADB’s IR Policy. Appendix 1 provides due diligence review of land acquisition for interchanges and colliers valuation study and provides a corrective action plan (CAP) for implementation of LARP and payments of compensation including price differential to be paid as additional payment to comply with replacement cost.

16. Compensation entitlement matrix below prepared in accordance with LAA, approved LARF and ADB’s IR Policy provides compensation entitlements for all types of losses:

Table 2: Compensation Entitlement Matrix Definition of Type of Loss Application AFs/APs Compensation Entitlements Agricultural land, All land losses Owner  In addition to the market rate calculated including cultivable irrespective of (Legal/legalizable) under LAA/BOR market rate + 15% land and impact severity compulsory acquisition surcharge, cash uncultivable compensation at full replacement cost wasteland (RC1) including fair market value plus all transaction costs, applicable fees and taxes and any other payment applicable 2  If BoR compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation.  A price differential of Rs.2.926 million (@ 10% of BOR cost of affected land) will be paid to all eligible AP. Tenants/sharecropper  Cash compensation equal to market value of lost harvest to be shared with landowner based on the sharecropping contract. Residential/ Owner  In addition to the market rate calculated commercial land (legal/legalizable) under LAA/BOR market rate + 15% compulsory acquisition surcharge, cash compensation at full replacement cost (RC)3 including fair market value plus all transaction costs, applicable fees and taxes and any other payment applicable  If BoR compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation to support to affected livelihoods  A price differential of Rs.2.926 million (@ 10% of BOR cost of affected land) will be paid to all eligible AP. Residential and Owner of the  Cash compensation at full replacement commercial Structure cost for affected structures and other fixed structures assets, free of salvageable materials, depreciation and transaction cost and also

1 Refer to IR safeguards as in SR2 para 10 of SPS 2009. 2 Board of Revenue, provincial agency with a mandate to approve compensation rate/amount. 3 Refer to IR safeguards as in SR2 para 10 of SPS 2009.

Definition of Type of Loss Application AFs/APs Compensation Entitlements transportation cost. Fees and taxes (if applicable) will be waived.  Rental assistance for a period of six months for residential structure owners.  Rs.40,000/= for getting electricity connection at new premises. Cattle yards or Cash compensation at full replacement cost farm deras. for affected structures and other fixed assets, free of salvageable materials, depreciation and transaction cost. Fees and taxes (if applicable) will be waived. Transitional Businesses AFs facing permanent Cash compensation during the interruption Allowance or temporary period 06 months for shop loss and 03 business loss. months for temporary tube well loss, as per income of the AF, supported by tax payments records or in the absence of such documents, equal to inflation adjusted OPL (1,942.66 X 7.2 X 3= 42,000) as transitional allowance in case of shops and tube wells. Crops Affected crops Cultivator of crop Crop compensation in cash at the current market rate for one year’s agricultural income (both Rabi and Kharif harvests). Trees All affected trees Owners  Fruit trees: .Fruit trees are compensated based on age category (a. 1–2 year; b. 2–5; c. 5–12 years & d. Over 12+). Compensation is assessed by Ayub Research Institute, Forest and Horticultural Departments.  Timber trees: trees grown and/or used for timber. The compensation is to reflect the market value of tree’s wood content, based on the girth of trunk at current market rates as provided by the Forest Department. Transportation/ APs to be relocated-  One time paid in lump sum, an amount of Relocation Owners of residential Rs.15000/- in case of household structures, Assistance and commercial/ and Rs.10000 in case of tube wells shop as business structures transport allowance to shift the materials of affected structures. Vulnerable DP All APs/ APs below  Additional Cash allowance equivalent to 03 livelihood support the OPL. months of inflation adjusted OPL. APs  Priority in project related employment, ensured through bidding document. Unidentified Unanticipated All APs Dealt with as appropriate during sub-project Losses Impacts implementation according to the ADB Policy and updated LARF of NTCHIP.

17. For LARP preparation, implementation and monitoring a land acquisition and resettlement unit (LARU)has been set up at project office in Faisalabad, which is comprised of Director and Deputy Director Land and Social, Land Acquisition Collector and Resettlement Specialist and social organizers and other LAR staff under supervision consultants. LARU at this level will report to the General Manager/Project Director M4. At PMU level in NHA headquarter in Islamabad General Manager Environment, Afforestation, Land and Social (EALS). LARU is responsible for LARP implementation and internal monitoring.

18. Affected Persons Committee and Grievance Redress Committees are constituted to liaise with AFs, facilitate information disclosure and speedy redress of grievances at local and project levels. A grievance redress system is also provided in the LARP and put in place to

resolve all resettlement related issues. Land Acquisition issues will be dealt with under the provision of LAA 1894 and ADB’s Guidelines pertaining to project based grievance redress mechanisms. Internal monitoring and reporting of LARP will also be carried out by Supervision Consultants’ Resettlement Specialist while services of an External Monitor will be hired for external monitoring and reporting of LARP.

19. The final cost of land acquisition and resettlement impacts, LARP implementation and monitoring comes to be Rs.64.77million. The allocated budget for the compensation of lost land of the affected landowners at replacement cost is Rs.48.806 million (Rs.45.88 million as the LAA/BOR compensation and Rs.2.926 million as RC to be paid as supplementary/additional compensation/assistance over and above the LAA/BOR compensation). The compensation rates for other assets including structures, trees and crops are provided by the respective government departments as replacement value to the lost assets. Details of final costs of LARP are as under:

Table 3: Summary of LAR Costs and Budget Unit/Rate Total Cost Quantity/Total US $ Sr. # Description Number Unit (Rs.) (Rs.) Rs. (Million) (Million) A Land Acquisition Cost / Compensation Calculated under Law (CCL) 1 Aminpur Interchange 9.6 Acre Various 16,620,335 16.620 0.164 Chiraghabad Interchange 16.14 Acre Various 11,105,403 11.105 0.109

Sir Mehdi Shah Interchange 31.88 Acre Various 18,160,807 18.161 0.179

Total 57.62 45,886,545 45.88 0.452

2 Structures Aminpur Interchange 3 No. Various 884,258 0.884 0.0087

Chiraghabad Interchange 1 No. Various 86,500 0.087 0.0008

Sir Mehdi Shah Interchange 1 No. Various 170,107 0.170 0.0017

Total 1,140,865 1.141 0.0112

3 Trees Aminpur Interchange 64 No. Various 189,823 0.190 0.0019

Chiraghabad Interchange 105 No. Various 191,272 0.191 0.0019

Sir Mehdi Shah Interchange 249 No. Various 880,178 0.880 0.0086

Total 1,261,273 1.261 0.0124

4 Crops Aminpur Interchange 9 Acre Various 579,621 0.580 0.0057

Chiraghabad Interchange 16.08 Acre Various 1,180,905 1.181 0.0116

Sir Mehdi Shah Interchange 29 Acre Various 2,023,827 2.024 0.0200

Total 54.08 3,784,353 3.784 0.0373

5 Assets

Aminpur Interchange 1 No. Various 7,600 0.008 0.00007

Sir Mehdi Shah Interchange 2 No. Various 88,821 0.089 0.0009

Total 3 96,421 0.096 0.0009

Unit/Rate Total Cost Quantity/Total US $ Sr. # Description Number Unit (Rs.) (Rs.) Rs. (Million) (Million) Sub Total(A) 52,169,457 52.169 0.5164

B Allowances 6 Livelihood Allowance 14,000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 1 42,000 0.042 0.0004

7 Business/Transition Allowance 14,000 for 6 Aminpur Interchange 1 No. 84,000 0.084 0.0008 months 14,000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 2 126,000 0.126 0.0012

8 House Rent Allowance 7,000 for 6 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 42,000 0.042 0.0004

9 Transportation/shifting Allowance Aminpur Interchange 1 Various 10,000 10,000 0.010 0.0001

Sir Mehdi Shah Interchange 2 Various 25,000 25,000 0.025 0.0002

Total 35,000 0.035 0.0003

10 Electricity Allowance Aminpur Interchange 1 Rs. 40,000 40,000 0.040 0.0004

Sir Mehdi Shah Interchange 1 Rs. 40,000 40,000 0.040 0.0004

Total 80,000 0.080 0.0008

11 Vulnerable Allowance 14,000 for 3 Aminpur Interchange 06 No. 252,000 0.252 0.002 months 14,000 for 3 Chiraghabad Interchange 3 No. 126,000 0.126 0.0012 months 14,000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months

Total 420,000 0.42 0.004

Additional compensation- 12 gap between compensation and ADB’s 2,926,621 2.926 0.029 Replacement Cost (RC), as assessed by independent appraiser Sub Total (B) 3,671,621 3.671 0.036 Sub Total (A+B) 55,841,078 55.834 0.553 2.79 C Monitoring and Evaluation @ 5% of the Total Cost 2,792,053 0.0276

D Administrative Cost @ 1% of the Total Cost 558,410 0.558 0.005

Unit/Rate Total Cost Quantity/Total US $ Sr. # Description Number Unit (Rs.) (Rs.) Rs. (Million) (Million) E Contingencies @ 10% of the Total Cost 5,584,107 5.58 0.0554 Grand Total(A+B+C+D+E) 64,775,648 64.77 0.641

20. Status of LAR and Project Implementation: The LARP implementation is underway and about 86% compensation (for land and non-land assets) has been disbursed to 114 APs of the total 155. The payment of resettlement/rehabilitation allowances (as per entitlement matrix of LARP) including the additional payment of price differential will commence after the LARP is approved by ADB. Earlier as agreed, an independent land valuation study was also conducted by an international valuation firm; Colliers International. The study worked out a price differential of Rs.2.926 million by Colliers to meet the requirement of ADB’s replacement cost. This amount will paid to all applicable APs (122 APs) under the corrective action plan (CAP), annexed with the LARP. NHA will provide monthly internal monitoring reports and quarterly external monitoring reports (as mutually between ADB and NHA) to ADB covering the LARP implementation, disbursement of compensation as per entitlement matrix and CAP. External monitoring reports by external monitoring agency or individual consultant will validate the payments and implementation of LARP and CAP. The construction work will be conditional to full LARP implementation. These activities will be monitored both internally and externally on quarterly basis. Table 1.2 below provides Interchange-wise details about the awarded amount and the amount paid thus far.

Table 1.2: Interchange-wise Summary of Awarded Amount and Amount Paid Sr. Awarded Amount % Date of No. Interchange Amount (PKR) Disbursed (PKR) Achieved Award 1 Aminpur 1,7941110 14,610,159 81% 26-11-2013 18-01-2013 2 Chiraghabad 12,324,394 10,081,170 82% 03-01-2013 3 Sir Mehdi Shah 18,871,769 17,406,757 92%

Total 49137273.0 42098086.0 86%

SECTION 1

PROJECT DESCRIPTION

1.1 Project Background

1. The updated Land Acquisition and Resettlement Plan (LARP) relates to a land acquisition process that has already largely been completed. The LARP is now updated to ensure full consistency with ADB’s Safeguard Policy, particularly in relation to the provision of full replacement cost.

2. The project includes the construction of three interchanges at different RDs which are listed below:

 Aminpur Interchange (11+804)  Chiraghabad Interchange (34+577)  Gojra Interchange (58+069)

3. As a part of National Trade Corridor Highway Investment Program (NTCHIP), M-4 (Section-1) Tranche-1 project is being constructed with the assistance of Asian Development Bank (ADB) funds for Road Sector Development. M-4 Section-1 starts from Faisalabad, at the end point of Faisalabad–Pindi Bhattian Motorway (M-3) and terminates at Gojra–Jhang Road. It is a part of motorways program. With the construction of this facility; the motorway network will be extended to southern Punjab. This motorway will link major cities of the country like Peshawar, Islamabad, Lahore and Faisalabad with Multan and southern areas. This will play a vital role in the economy of the country by fuel efficiency, reducing travelling time and operating costs. In compliance to ADB’s safeguard requirements, land acquisition and resettlement plan was to be prepared in two parts (first part for Linear component and second part for Interchanges) following provisions of Resettlement Framework (approved in 2007 for the whole MFF). LARP for the carriageway (part one: linear component)of M-4 (Section-1) was prepared by NHA in accordance with ADB Safeguard requirements as illustrated in , LARF and national laws applicable to the project including LAA-1894, which was approved by ADB in 2009 and has been implemented to the satisfaction of ADB. However, due to unavailability of design of the interchanges neither land acquisition was initiated under LAA 1894, nor LARP for these interchanges (part two: interchanges component) was prepared and submitted to ADB. Now the location and design of interchanges are finalized hence, this LARP for interchanges of M-4 Section-1 (Faisalabad–Gojra Section) is finalized following LARF provisions to comply ADB’s safeguard requirements under loan covenants.

1.2 Description of the Project

4. The M4 Section-1 component of Motorway Project includes construction of four lanes dual carriageway from Faisalabad to Gojra and construction of four Interchanges at different local road crossings (provincial highways). About 1441 acres of land has been acquired for ROW of the carriageway of M4 Section-1 excluding four interchanges i.e., one at Kamalpur (starting point of M4 Section-1 at Faisalabad Chiniot road) and remaining three at i) Aminpur (Faisalabad–Aminpur road), ii) Chiraghabad (Faisalabad–Jhang road), and iii) Sir Mehdi Shah (Gojra–Jhang road). The paved width of exit and entry loops for all four interchanges on both sides of the carriage way is 7.3 m with inner and outer shoulder 1 meter and 3 m respectively. The motorway as well as interchange’s loops will be fenced from both sides to restrict entry of animals (domesticated and wild) on to the carriageway to ensure safe and steady derive. A 5-m

service road/ pedestrian track will be provided on both sides of the Interchanges loops to facilitate peasants of area to go to their fields to continue cultivation without any interruption. Land will be acquired for construction of carriage way for interchanges loops connecting provincial highways passing across M4- Section-1.

1.2.1 Interchanges

5. Section-1 of the motorway has four (04) interchanges namely i) Aminpur interchange at Faisalabad–Aminpur road, ii) Chiraghabad interchange at Faisalabad-Jhang road, iii) Sir Mehdi Shah interchange at Gojra-Jhang road and iv) Kamalpur interchange at Faisalabad–Chiniot road,. Among these interchanges, the land for Kamalpur Interchange was acquired under M-3 project which is under NHA’s possession and involves no LAR issues. However, privately owned agricultural land will be acquired for remaining three interchanges at serial i) to iii) so this LARP deals with 3 interchange only excluding Kamalpur Interchange. The location of interchanges involving LAR is given as under.

Table 1.1: Locations of Interchanges Sr. No. Chainage/RD Interchange Name Location 1 11+804 Aminpur interchange Faisalabad – Aminpur Road 2 34+577 Chiraghabad interchange Faisalabad – Jhang Road 3 58+069 Sir Mehdi Shah interchange Gojra – Jhang Road

Figure 1.1: Map showing Alignment Layout Plan of Section-1 and Acquisition of Land for all the three Interchanges with their Locations

1.3 Need for LARP

6. The involuntary resettlement of AFs due to project actions may cause severe long–term socioeconomic hardships, impoverishment and environmental damages unless appropriate measures are carefully planned and carried out. The ADB Policy on involuntary Resettlement requires that i) involuntary resettlement should be avoided where feasible, ii) minimized by exploring all viable alternative project/design options and if it becomes unavoidable, then the affected persons (APs) should be fully compensated for their lost assets and earnings to ensure that their living standards should be restored at pre-project level if not improved. This Policy endorses the eligibility of all the categories of persons, whether with formal legal rights or without these rights in a project, but occupying project area prior to the cut–off date.

7. This LARP has been prepared by the National Highway Authority based on 100% census of losses of Displaced Persons (APs) in terms of land, structures, trees and assets; socioeconomic survey of APs covering the project area and on-going consultations through meetings, interviews, focus group discussions with the APs and other stakeholders, in accordance with provisions of LARF and the ADBs Involuntary Resettlement Policy guidelines.

8. The primary objective of the LARP is to provide necessary details for compensation, resettlement and rehabilitation by identifying (i) the extent of losses; (ii) the policy framework for compensation payments, income restoration, relocation and rehabilitation; (iii) mechanisms for timely disclosure of information to the APs and other stakeholders (iv) institutional framework for participation and implementation; (v) grievance redress mechanism and (vi) responsibilities for monitoring the implementation process (vii) resettlement budget and staggered implementation schedule for all three interchanges to ensure timely implementation of LARP provisions and handing over of land to contractor as scheduled.

1.4 Land Acquisition and Resettlement (LAR) Conditions

9. The civil works contract is already awarded for the project and the contractor is carrying out construction activities on carriage way (linear component). However, mobilization and handing over of sites for interchanges are conditional upon the preparation (reflecting final impacts, APs lists and final compensation rates of land, structures, trees and crops approved by the relevant departments) and full implementation of interchanges LARP (following staggered implementation schedule) acceptable to ADB in accordance with the LARF and ADB’s Involuntary Resettlement Policy requirements.

1.5 Alternative Analysis

10. The basic purpose of construction of M-4 Interchanges is to provide an efficient road link to the people of the adjoining areas and a controlled exist and entry from crossing provincial highways and major cities/ urban centres like Chiniot, Aminpur, Painsera and Gojra which are in close vicinity of M-4 (Section-1). During planning and designing different alternatives, were considered for fostering and sharing benefits of development activity without comprising the safeguard requirements. The alternatives considered are discussed as blow.

1.5.1 No Project Option

11. Without the construction of interchanges there will be no connectivity between the major cities and the commuters around Section - I of the Motorway resulting in the access problem to

the major cities such as Pindi Bhattian ,Gojra etc. With no access to the adjoining cities and busy provincial highways crossing M 4- Secion-1, the fast and effective intera-city trade will be affected depriving the population of adjoining cities to foster benefits of this trade link and thus objectives of project will be compromised. . Without construction of interchanges, the existing road from Faisalabad – Gojra will be the only available link road for surrounding cities and will continue to be the main mean of transportation in the area. With the passage of time, increased traffic jams at busy locations will result in waste of time and money as well as deterioration of poorly managed provincial road network. Moreover, according to the traffic surveys an increase @ 7.5 per cent per year is reported and up to year 2010 traffic count is grown by 13035 vehicles per day in project corridor. The existing roads are insufficient to cater this traffic volume and therefore, without construction of the project as per design, future traffic needs cannot be met. Though construction of M 4 Section-1 without interchanges will have zero LAR impacts however, it will result in further worsening the present socio-economic environment of the area and increased disturbance to residents of area and the road users. Being drastic to project objectives this option is not viable.

1.5.2 Construction of Interchanges

12. This option involves construction of interchanges Faisalabad- Khanewal Motorway at three different locations i.e. Aminpur, Chiraghabad and Gojra to cater needs for exist and entry of traffic through Faisalabad – Aminpur Road, Faisalabad–Jhang Road, and Gojra–Jhang Road (provincial highways) respectively, to facilitate the adjoining community and users of these provincial highways to foster project benefits. As the land was not acquired in first instance along with acquisition of ROW land for project alignment so, constructions of these interchanges involve land acquisition and resettlement. During planning these interchanges are sited nearby urban centres at points where provincial highways cross M 4 to facilitate the population of adjoining areas. However, to avoid/minimize Resettlement issues the interchanges are provided at a fair distance from cities and rural settlements in agricultural lands. Construction of these interchanges will results in the following overarching advantages:

 Provide connectivity between the major cities/settlements in the project corridor;  Ease in access to Motorway (M-4) resulting in utilization of better and safe mode of transportation by the locals of the project area;  Easy access to the markets for agricultural inputs; with improved and efficient intra city trade;

1.5.3 Design Alternatives considered minimizing LAR Impacts

13. Siting and design of developmental actions determines the level and severity of resettlement impacts. So these components were also focused to minimize the resettlement impacts without compromising the benefits to be accrued and safety of road users as well as nearby population. Keeping in view these objectives following design alternatives are considered.

(A) Exit/Entry Loops without acquiring land within loops

14. Four Lane exit entry carriage way loops (7.4 meter paved carriage way with 3 meter inner and outer shoulders) without acquiring the land within loops was studied. This design option considerably minimizes the land acquisition and subsequent resettlement impacts. Resettlement impacts of this design option were further minimized by sitting of loops in

agricultural lands by avoiding the commercial and residential structures to the possible extent. To meet the objective for minimizing the resettlement impacts even one loop of interchange-i was redesigned on the opposite side of originally designed loop with limited impacts on commercial land and structures. The total land required for ROW of exit entry loops for all three interchanges is only 58.178 acres with limited impact on -172 AFs as they will lose small parcels of their lands falling under Loops ROW width only. This option will ensure that the impacts are minimized in terms of loss and significance with sufficient land remain with AFs to carry on their agricultural activities and may also improve worth and potential of the privately owned landed property within loops as AFs may put it under other productive uses. However, its demerits include compromised road network safety if proper regulatory measures like access passages for peasants to cultivate and use their land are not adopted.

1.5.4 Exit/Entry Loops Carriageway with Land Acquired within Loops

15. Construction of Four Lane exit entry carriageway with acquired land within loops will require 134 acres of privately owned agricultural land owned by 196 Affected Families for all three interchanges. Although this option may have some positive effects on traffic safety near interchanges however, it will increase resettlement impact not only in terms of land and number of Affected Families but in terms of significance also. In addition to land loss, 29 residential and commercial structures owned by 29 AFs (16 residential, 13 shops and a brick kiln) were falling under impact. Besides the land acquired within loops will be in access and of no use for NHA in future. So, considering all these factors this option was dropped due to its resettlement impacts.

16. Keeping all alternatives in view the design option at serial 1.5.3(A) is adopted due to less resettlement impacts. The proper measures including pipe culverts and access passages are provided in design for the peasants to make use of their land without interrupting the traffic flows on the interchanges carriage way loops to ensure improved road network and community safety. The AFs have been identified as per final design, impacts are assessed, assets evaluated and compensation provisions are proposed in subsequent sections of the LARP in strict compliance to agreed LARF for the project. In addition to above while designing these interchanges special focus was to avoid the population and resettlement. For this purpose interchanges are designed in areas outside the cities with limited human activity.

1.6 Status of Land Acquisition and Resettlement Activities

17. The LARP implementation is underway and about 86% compensation (covering land and non-land assets) has been disbursed to 114 APs of the total 155. The payment of resettlement/rehabilitation allowances (as per entitlement matrix of LARP) including the additional payment of price differential will commence after the LARP is approved by ADB. Earlier as agreed, an independent land valuation study was also conducted by an international valuation firm; Colliers International. The study worked out a price differential of Rs. 2.926 million by Colliers to meet the requirement of ADB’s replacement cost. This amount will paid to all applicable APs (122 APs) under the corrective action plan (CAP), annexed with the LARP. NHA will provide monthly/quarterly internal monitoring reports (as mutually agreed with ADB) to ADB covering the disbursement of compensation as per entitlement matrix and CAP. External monitoring reports by external monitoring agency or individual consultant will validate the payments and implementation of LARP. The construction work will be conditional to full LARP implementation. These activities will be monitored both internally and externally on quarterly basis. Table 1.2 below provides Interchange-wise details about the awarded amount and the amount paid thus far.

Table 1.2: Interchange-wise Summary of Awarded Amount and Amount Paid Sr. Awarded Amount % Date of No. Interchange Amount Disbursed Achieved Award (PKR) (PKR) 1 Aminpur 1,7941110 14,610,159 81% 26-11-2013 2 Chiraghabad 12,324,394 10,081,170 82% 18-01-2013 03-01-2013 3 Sir Mehdi Shah 18,871,769 17,406,757 92%

Total 49137273.0 42098086.0 86%

SECTION 2

SCOPE OF LAND ACQUISITION AND RESETTLEMENT

2.1 Objectives of Land Acquisition and Resettlement Plan

18. Main objective of Land Acquisition and Resettlement Plan (LARP) is to identify the physically and economically affected persons (APs), assess the impacts on APs, provide compensation to APs, and to develop a mechanism to implement LARP. LARP is prepared by National Highway Authority (NHA) under the provisions of Land Acquisition and Resettlement Framework (LARF), the requirements of ADB’s Involuntary Resettlement Policy and the LAA 1894. It provides full identification of the APs; assesses all project impacts and sets out objectives, principles, compensation criteria and public participation mechanisms to rehabilitate the APs. For preparation of LARP, socio-economic survey and full census of APs is carried out. The impacts are identified/ assessed and, linked with respective APs. The valuation of impacted assets is based on replacement value collected from the market and concerned departments for use in computation of compensation for the APs.

2.2 Scope of LARP

19. The scope of the LARP includes the identification, evaluation and compensation of land and land based as well as non-land assets of encroachers and squatters if any, and to collect census data linked with impacts to determine impact significance and compensation entitlement against each asset lost including measures for rehabilitation and restoration of APs living standard at pre-project level.

20. The LARP has been prepared under the provisions of Land Acquisition and Resettlement Framework (LARF), ADB Involuntary Resettlement policy 1995 and the LAA 1894. The objective is to minimize involuntary resettlement, provide compensation for lost assets and resettlement allowances to ensure that the affected persons may restore their former living standards. Land acquisition with impacts to land based assets is involved in all 03 Interchanges of M-4 section-1 and compensation provisions to the AFs losing their land, other property/ assets and sources of livelihood (irrespective to legal or formal title) are made. The compensation package will cover replacement cost of land and other lost assets for rehabilitation and restoration of living standard of the APs.

2.3 Cut-Off Date

21. The land acquisition process for interchange ii and iii was started on December 01, 2010 by publishing notification under Section-4 of Land Acquisition Act 1894 and the same date was fixed as the cut-off date. While for interchange-i, the land acquisition process was started January 19, 2011 with the publication of Section-4 of LAA-1894 and the same date was established as cut-off date by NHA for interchange-i for compensation eligibility and entitlements. However, during land acquisition process it was learned that the design of one loop on interchange-i will impact 29 residential and commercial structures including brick kiln. So the loop was redesigned on other side of the existing road. So, the land acquisition process for redesigned loop was initiated in September, 2012 with publication of Section-4 on September 15, 2012 and the cut of date was revised accordingly for interchange-i. The same dates were communicated to the communities, APs and other stakeholders during the process of census and socioeconomic surveys and consultations at village level.

2.4 Scope of Land Acquisition

22. The construction of interchanges will require 57.62 acres of the land on permanent basis in 04 mouzas of Districts Faisalabad and Toba Tek Singh. The acquisition process for private land acquired for the construction of Interchanges is under process.

23. For assessment of acquisition of land, latest revenue record (2012) from the Land Acquisition Collector (LAC) has been used. According to these records, the affected land is categorized as agricultural on road and off road, commercial on road and off road as well as residential on road and off road. The interchange wise detail of affected land is in each respective mouza-is summarized in Table 2.1 below:

Table 2.1: Mouza-wise Summary of Affected Land and Owners Affected Sr. Total Land No. of Name of Mouza Land NO. (Acres) Land AFs (Acres) Interchange-1 (Aminpur) 1 Chak 59 JB 88.52 9.6 33 Interchange-2 (Chiraghabad) 2 334 JB 134.98 9.69 11 336 JB 52.38 6.45 18* Interchange-3 (Sir Mehdi Shah) 3 303 JB 188 31.88 90* Total 467.99 57.62 155

* In the list of AFs the lease holders on private land and on state land are also included.

Ownership of Land being Acquired

24. Out of 57.62acres of land being acquired for 3 interchanges, 54.212acres are privately owned land and 3.408 acres are state owned which are being cultivated by the leaseholders. Land ownership of the land acquired for all three interchanges in Section-I of M-4 Faisalabad- Gojra Section-1) is tabulated in Table 2.2 below.

Table 2.2: Summary of Land Acquired Interchange-1 Interchange-2 Interchange-3 Total Land Ownership (Aminpur) (Chiraghabad) (Sir Mehdi Shah) a) Private Land 9.6 16.052 28.57 54.212 b) State Land 0.00 0.088 3.31 3.408 Total 9.6 16.138 31.88 57.62

AFs facing Loss of Land

25. Indirect impacts on the farm labour are not envisaged as such due to partial loss of land., The land record reflect that out of 155 AFs,142 are the titleholders (land owners), 09 are lease holders. As per land revenue record most of the AFs in title holder category are not the cultivators and the land in their name is being cultivated by their other family members

(shareholders in that land). Few land owners have leased out their land for cultivation purposes while state land is also being cultivated by the leaseholders who are also identified as AFs as per their loss. The table 2.3 below provides details about the land owners and lease holder affected due to land loss for each interchange.

Table 2.3: Details of the Land Owners and Lease Holders State land Interchange AFs by title AF by Lease Total units Interchange-I (Aminpur) 32 00 1 53 Interchange-II (Chiraghabad) 29 00 1 29 Interchange-III (Sir Mehdi 81 09 2 90 shah) Total 142 09 4* 155 *Four State land plots are not included in AFs.

Type of Land Acquired

26. The table below provides category wise details of land being acquired for all three interchanges. The data reflect that no residential land is being acquired however, about 0.02 acres of commercial land on road is under impact at interchange-I.

Table 2.4 (a): Type of Land Acquired Land category Affected land in acres for all three Interchanges Total Land Interchange I Interchange II Interchange III (Aminpur) (Chiraghabad) Sir Mehdi Shah

Commercial on Road 0.02 0.00 0.00 0.02 Commercial off Road 00 0.00 0.00 000 Sub Total 0.02 0.00 0.00 0.02 Residential on Road 0.13 0.00 0.00 0.13 Residential off Road 0.42 0.00 0.00 0.42 Sub Total 0.55 0.00 0.00 0.55 Agricultural on Road 1.41 5.13 2.00 8.54 Agricultural off Road 7.80 11.01 29.88 48.69 Sub Total 9.21 16.14 31.88 57.23 Total 9.78 16.14 31.88 57.8

Scale of Impacts on Privately Owned Land

27. Out of 155 AFs 151 will lose their agricultural land with a degree of significance varying between below 10% to above 50%. The impact significance wise detail of AFs losing land is provided in table below for all three interchanges. The results show that on an overall basis 53% AFs will be losing less than 10% of their land followed by 32% with a loss between 10% to 20%, other 10% with a loss between 20% to 30% and remaining 5% losing above 30% of their land (3% losing 30% to 50% and 2 % losing above 50%).

Table 2.4 (b): Scale of Impacts on Privately Owned Land

Impact Significance on Land Interchange No. of AFs Below 10% to 20% to 30% to Above with land 10% 20% 30% 50% 50% loss Interchange-I (Aminpur) 33 87% 6% 2% 4%

Interchange-II (Chiraghabad) 30 71% 6% 23%

Interchange-III (Sir Mehdi shah) 92 24% 58% 10% 4% 5%

Total 155 53% 32% 10% 3% 2%

2.5 Loss of Cropped Area

28. Out of total 57.62 acres of affected land 54.5 acres is under cultivation. Due to small land holdings most of the AFs have been engaged in other business for their livelihood and the land in their name is under cultivation of their other family members (identified as AF by title) and thus had limited dependency on agriculture. Out of 155 AFs in land owner category 22 land owner AFs are engaged in cultivation only while the land record reflect that 09 AFs falling in leaseholder category will be facing loss of crops due to land acquisition. Total cropped area affected is 54.5 acres cultivated by only 32 AFs (22 land owners and 10 leaseholders). Summary of the affected cropped area is tabulated in Table 2.3 below. Agriculture is predominantly carried out in irrigated areas. The dominant crops are wheat, rice, cotton and sugarcane. The agricultural year is divided in two seasons Rabi (the winter harvest) and Kharif (the summer harvest). The Rabi season is dominated by wheat while the Kharif season is dominated by rice or cotton. For sugarcane there is only one harvest a year.

29. Based on the above, two different cropping patterns can be identified:

a. Pattern 1: Sugar Cane: only 1 harvest per year b. Pattern 2: Wheat + Rice (2 harvests): 1st harvest (summer) wheat; 2nd harvest (winter) rice.

30. As it is assumed that AF losing crops will be affected for the entire agricultural year the compensation given to AF will be based on the specific cropping pattern typical of his farm.

Table 2.5: Summary of Cropped Area Cropped Area in Acres Total Land Crop Type/ Interchange-1 Interchnage-2 Interchnage-3 (Acres) Pattern (Aminpur) (Chiraghabad) (Sir, Mehdi Shah) Sugar Cane 0.23 1.63 3.23 5.09 Wheat & Rice 8.26 14.29 23.48 46.03 Empty Land 0.98 0.21 2.19 03.38 Uncultivable Land – – – 3.678 Total Land 9.47 16.13 28.9 58.178 No of AF by Crop (6+1)=7 6 (10+9)=19 (22+10)=32 loss

2.6 Loss of Trees

31. Data regarding trees (wood and fruit trees) has been collected through field survey. Total affected trees are 418 of different species, among them 329 are wood trees and 89 are fruit trees. The classification of wood trees is made on the basis of rates and classes provided by Faisalabad Forest Division, Government of the Punjab. Most of the affected trees in the project area are of girth below 62”. These trees are of different species like Kikar, Shisham, Peepal, and Eucalyptus. Table 2.4(a) shows the number and kinds of all affected wood trees will be compensated according to rates provided by Ayub Research Institute. Detailed list of affected fruit and non-fruit trees are attached in Annex – I.

Table No.2.6 (a): List of Non Fruit Trees Interchanges Sr. No Species Interchange-1 Interchange-2 Interchange-3 Total (Aminpur) (Chiraghabad) (Sir Mehdi Shah) 1 Shisham 23 86 125 234 2 Kikar 3 2 37 42 3 Bakain 4 1 0 05 4 Sumbal 8 10 0 18 5 Sirin 0 2 0 02 6 Banian 0 0 0 00 7 Eucalyptus 4 0 0 04 8 Peepal 0 0 0 00 9 Date palm 19 0 0 19 10 Beri 1 2 2 05 Total 62 103 164 329

32. I57 Fruit trees are categorised according to their species. Fruit trees are also of different types and these trees will be compensated according to their productive age. As per concerns of the APs, categories of fruit trees are revised depending on the age of fruit trees and into pole crop, young crop, prime crop and decline crop. Summary of affected fruit trees is given in Table 2.4.

Table 2.6 (b): List of Fruit Trees Interchanges Sr. No Species Interchange-1 Interchange-2 Interchange-3 Total (Aminpur) (Chiraghabad) (Sir Mehdi Shah) 1 Lasoora 01 01 00 02 2 Shahtoot 01 00 01 02 3 Guava 00 01 00 01 4 Kino 00 00 84 84 02 89 Total 02 85

2.7 Loss of Structures

33. According to the field inventory survey of the project affected assets, the project will impact 05 structures consisting of 01 house, 01 farm yard, 01 shop, 01 boundary wall each of veterinary centre and Federal Government PASSCO Godown. Mouza-wise comparison of the total and affected areas of these structures shows that all these structures are affected to the extent of 100%. These are compensated on 100% basis. Mouza-wise summary of affected structures with respect to total covered area, affected area and extent of impact are provided in Table 2.7. Identification of affected structures is provided as Annex-II.

Table 2.7: Mouza-wise Summary of Affected Structures with respect to Total Covered Area, Affected Area and Extent of Impact

Houses Shops Deras Boundary Walls

Total Total Total Affected Sr. Total Covered Affected % Total Covered Affected % Total Covered Affected % Total Area Total No. Village Interchanges Number Area Area age Number Area Area age Number Area Area age Number (m3)

Interchange-1 1 59/JB 0 0 0 0 1 637.63 637.63 100 1 4143.75 4143.8 100 1 210 3 (Aminpur)

Interchange-2 2 336/JB 0 0 0 0 0 0 0 0 0 0 0 1 727.5 1 (Chiraghabad)

Interchange-3 3 303/JB (Sir Mehdi 1 677.5 677.53 100 0 0 0 0 0 0 0 0 0 0 1 Shah)

Total 1 1 1 2 5

2.8 Loss of Other Assets

34. The project will impact 03 privately owned assets including 01 tube wells, and 02 hand pumps. The tube wells are used for irrigation purposes whereas the hand pumps are located within the affected house for meeting the domestic water needs of the families. The summary of affected assets is provided in Table 2.8.

Table 2.8: List of Affected Assets Sr. No. Hand No. of Interchange Village No. pumps Tubewell Total 1 Interchange-1 (Aminpur) 59/JB 01 00 01 2 Interchange-2 (Chiraghabad) - - - - 3 Interchange-3 (Sir Mehdi Shah) 303/JB 01 01 02 Total 02 01 03

35. The mouza-wise list of affected people with details of impacts are provided in Annexure- III to V and the results are summarized in Table 2.9.

Table 2.9: Interchange-wise Summary of Multiple Impacts Tree Tree Total Total Trees Trees Tree & Tree & Village Leaser Land & Land & Leaser & Structure Structure Structure Structures Structures Landowner Landowner Land &Tree Interchange Interchange

59 JB Interchange-1 (Aminpur) 25 00 00 05 00 01 01 01 33 00 11 9 0 0 2 0 0 00 334 JB Interchange-2 (Chiraghabad) 00 16 0 1 2 0 0 00 19 336 JB Interchange-3 (Sir Mehdi 00 92 72 7 0 10 2 1 00 303 JB Shah) Total 122 07 01 19 02 02 01 01 155* * Total 155 includes the 4 state owned land units.

SECTION 3

SOCIOECONOMIC INFORMATION AND PROFILE

36. This section provides the baseline information relating to the socioeconomic assessment of the project affected people and project area. Information has been obtained from the available published sources, field surveys in the project area, consultations with the stakeholders; and through visits to the government departments and other agencies.

3.1. Information/Data Collection Methodology

37. The LARP has been prepared by collecting the data/information from the real field settings. Data / information were collected from primary and secondary sources. Secondary information was gathered from all available documents i.e. (District Population Census Reports 1998) of district Toba Tek Singh and District Faisalabad, land folders and utility folders prepared by design consultants and ADB Guidelines on LARP preparation. For primary data collection, different types of field surveys and consultation sessions were held. The respondents belonged to all walks of life and included affected families, passengers, community leaders, key influential persons, women, and farmers. The following surveys were conducted.

 Household Census survey to document the affected persons (APs/AFs), their assets, family profiles and economic status.  Socio–economic survey to develop an overall baseline profile of the people of the area in respect of their socio–economic behaviors’, living standards, vulnerability and attitudes towards the developmental activity to be carried out in the area.

3.2. Census of APs / and their Assets

38. Household owners facing loss of land, asset / infrastructure, source of income or access to resources/ workplace are Affected Families. These include mainly the residents, land owners, business operators and owners of assets/structures located within ROW. A complete census of the AFs, on 100 % basis, was carried out by using a pre–structured questionnaire shown as Annex- VI. The census aimed at to register and document the number and status of APs/ AFs likely to be physically displaced or affected as a result of the project and, therefore, entitled to compensation.

39. The census survey of the APs/AFs commenced on March 13, 2011 and completed on March 25, 2011 which as subsequently updated in October/November 2012 after publication of Section 4 in September, 2012, for redesigned (one) loop of interchange-i to minimize impacts on commercial and residential structures. The publication of notification of Section-4 date was established as cut-off date under the project to determine the eligibility for compensation. Any person moving into the RoW after cut-off date (i.e. December 01, 2010 for interchanges ii & iii and September 15,2012for interchange-i) is not considered as eligible to any compensation. However, he will be given prior notice for removal of his structure/asset from ROW and allowed to take salvage material.

3.3 Socioeconomic Baseline Survey

40. As per ADB Involuntary Policy requirements, a sample survey was carried out to develop a socio–economic baseline of the general population nearby proposed interchange locations. A sample of 200 respondents including 50 women was selected by applying random sampling technique. For this purpose, the total number of APs/AFs was taken as the universe of the sample. A pre–structured questionnaire, shown as Annex- VI, was used for data collection.

3.4 Demographic Profile of the Project Area

41. Section-1 of the motorway has three (03) interchanges: at Faisalabad – Aminpur Road, (Aminpur Interchange), Faisalabad–Jhang Road, (Chiraghabad Interchange); and Gojra–Jhang Road (Sir Mehdi Shah Interchange). The study area falls in two (02) Districts i.e. Faisalabad & TT Singh. The total area of the District TT Singh is 3259 km2. The district consists of 03 tehsils, namely Tehsil TT Singh, Tehsil Kamalia and Tehsil Gojra. The district is comprised of three municipal committees namely TT Singh, Gojra and Kamalia, a town committee, Pir Mahal and 539 villages. The total area of the District Faisalabad is 1,443,703 km2. The district consists of 06 tehsils, namely Chak Jhumra, Faisalabad City Tehsil, Faisalabad Sadar Tehsil, Jaranwala Tehsil, Sammundri Tehsil and TandilianWala Tehsil.

3.4.1 Population of the Project Area

42. Project Area lies in Punjab and the people in the affected Tehsils belong to the castes including Syed, Jatt, Arain, Malik, Rajput, Warraich, Cheema, Kathia and Noon etc. The predominant religion in Toba Tek Singh and Faisalabad is Islam, with 97% and 95.6% of the people respectively. A small proportion of the population belongs to other religions including Christianity, Hinduism/Sikh and Qadiani/ Ahmadi etc. According to the District Census Reports1998, total population of the project affected Tehsils is as follows:

a) Gojra: Total population of Gojra Tehsil is 495,096 with 1.94% growth rate. The women/ men ration is 105:100. 76% population resided in rural areas. Average household size is 7.2. b) Faisalabad: Total population of Faisalabad Tehsil is 5,429,547 with a growth rate of 2.5%. The women/men ratio is 109:100. 57.3 % of population resided in rural areas and 42.7% lived in urban areas. Average household size is 7.2.

43. The overall literacy rate in the District TT Singh is 50.5%. The female literacy rate is only 39.1% compared to male literacy of 61.3%. The urban/rural break down shows that rural literacy is lower (47.5%) than urban literacy (63.2%). The literacy rate in the Faisalabad District is 51.9%. The female literacy rate is only 42.2% compared to male literacy of 60.9%. The urban/rural break down shows that rural literacy is lower (42.5%) than urban literacy (64.2%).

3.4.2 Settlement Pattern and Family Life

44. ROW passes from the irrigated agricultural areas of the Punjab Province, where people live in small villages and hamlets with a blend mix of different castes but culture is almost homogeneous. Majority of the population in project area resides in the form of compact blocks of houses like villages. The villages are connected to each other and nearby towns through metaled roads network including village roads, farm to market roads and provincial highways. Language, traditions and rituals are almost common and people have strong socio-cultural bonding. Most of the construction of houses is made of bricks and mud mortar and kacha/semi-

pacca house are common in rural areas while in urban centers predominantly pacca houses (houses and structures constructed of burnt are common).

45. In rural areas, although ownership rights of land vests in the name of family members individually, however joint family system is predominant in project area and families live in a shared house and share all productive resources such as land, crops, trees and cattle. The domestic management and arrangements are mainly in the hands of family’s elderly women members. While external matters are dealt by the family head, generally an elderly male member of family i.e. grandfather, father or elder brother. In urban/urbanized area nuclear family trend is emerging.

3.4.3 Conflicts Resolution Mechanism

46. The project area is a “settled area” where provincial and federal statutes/laws apply. Under these laws, the disputes are adjudicated through courts of law including Civil, District/Session and High Court. In villages panchayat system is also effective where the elders of the community sit together, probe into the matter, hear disputing parties view point and decide the issue with their knowledge and wisdom. The disputes between residents of one village are mainly decided by the panchiyat/elders of the same village through a consultative process. In case of disputes between residents of different village a bigger panchiyat is constituted with elders/influential from contiguous villages, who sit together and resolves the issue. Though, it is an effective way of dispute resolution at local level but it is losing its sanctity due to politicization of this system.

3.4.4 Commerce and Industry

47. Due to rapid industrialization, Faisalabad is the main hub of commerce and industry in the project area. There are 768 large industrial units, of which 31 textile spinning units, 150 textile processing, 27 flour mills, 6 sugar mills, 13 vegetable ghee/cooking oil units, 185 engineering units, 122 hosiery units, 9 cotton ginning factories, 193 soap and silicate, 26 Lentils/Dall Mills, 1 Chip board, 2 plywood units, one watches & clocks, one maize processing, 2 beverages, one jute mill, one caustic soda and other industries including carpets, rugs, printing & publishing, paints & and pharmaceutical products etc. There are also 20,000 cottage industries which includes 120,000.0 power looms. District TT Singh is lagging behind in industrial growth. The major industrial units in the district are mainly agro- based and include sugar mill, ice factory, ginning factory, cold storage, oil expeller, flour mill and poultry feed etc.

3.4.5 Socioeconomic Characteristics/Profile of the Project Corridor

48. A sample based structured socio-economic survey of the project corridor was carried out during census of AFs. All the APs/ AFs were taken as universe for this survey and a sample of 200 respondents was randomly selected. The socioeconomic profile of the people of project corridor as emerged from the sample surveys is discussed as follows.

3.4.6 Land Types and Land Use Pattern in the Project Corridor

49. The project corridor of M4 Section-1 passes through rural areas of Faisalabad and Toba Tek Singh Districts. All three interchanges (Aminpur, Chiraghabad and Sir Mehdi Shah are sited in the rural agricultural land along M4 Section-1 ROW. The area is mainly canal irrigated. The ground water is of good quality and some farmers have installed tube wells to irrigate their

lands. Cotton, wheat, sugar cane, rice and maize are the major crops. The findings of the socioeconomic survey have revealed that out of total area of 6820 Acres, about 22.60 percent is uncultivated and 77.40 percent is cultivated in all affected villages. Almost all the area is irrigated by canals however; Tube wells are also installed to overcome water shortages form canal supplies. The reported cropping pattern along the project corridor is comprised of wheat, cotton, sugarcane, rice and maize crops. Per acre average income from these crops as provided by Ayub Agriculture Research Institute, Faisalabad and validated through socioeconomic survey (Table 3.3) comes to Rs. 45600/=, 118500, 90000 and Rs. 72000/= respectively. The land use pattern of the villages/ mouzas along the project corridor is provided in Table 3.2.

Table 3.2: Land Use Pattern in Villages along the Project Corridor Un- Total Land Cultivated Irrigated Sr. Name Of Cultivated Holding Area Area No Mouza Area (Acres) (Acres) (Acres) (Acres) District TT Singh 1 303/ JB 1734 1342.06 1337.12 391.94 2 334/ JB 1510 1168.69 1164.39 341.31 3 336/ JB 1370 1060.34 1056.43 309.66 District Faisalabad 4 59/ JB 2206 1707.37 1701.09 498.63 Total 6820 5278.46 5259.03 1541.54

Source: District Census Report 1998, by Population Census Organization, Govt. of Pakistan, Islamabad.

Table 3.3 shows the average yields of various crops per acre and their average income based on the survey of the AFs.

Table 3.3: Average Crop Yield in Project Area Average Average Sr. Crops Yield Income Frequency Percentage No. (Maund/Acre) (Per Acre) 1 Wheat 38 45600 43 27 2 Sugar cane 790 118500 38 24 3 Cotton 36 90000 52 33 4 Maize 80 72000 24 15 Source: Socioeconomic survey of the project area by NHA consultants.

3.4.7 Population

50. Population of the 04 villages along the project corridor in 2012 stood as 25915 persons, including 13232 males and 12683 females by taking growth rate of 2.12% for District TT Singh and 2.5% for District Faisalabad, according to 1998 district census report. Each village has different household size however; average household size for all four project affected villages is

calculated as 6.85. The population of the villages in the project corridor for the year 1998 is provided in Table 3.3.

Table 3.3: Population of Project Corridor – 2012 Population Projection 2012 Av. Sr. H.H. No. District Villages Male Female Total Size 1 303 JB 2571 2502 5073 6.8 2 Toba Tek 334 JB 3155 3072 6227 7.3 3 Singh 336 JB 1411 1298 2710 6

4 Faisalabad 59 JB 6094 5812 11906 7.3 Total 13232 12683 25915 6.85 Source: Assessment by NHA consultants.

3.4.8 Housing Characteristics

51. During the Socio-economic survey respondents were also inquired about their house construction type to see the living standard of the respondents. 23% of the respondents live in Kacha (Mud) houses that are houses made of mud (Un-burnt bricks) and with traditional beams and baton roofs. 37% respondents live in pucca houses that are constructed with superior materials and workmanship. 40% respondents have Semi pucca houses that are houses made of bricks masonry with mud mortar. Table 3.4 shows the house construction type.

Table 3.4: House Construction Type S. No Construction Type Number Percentage (%) 1 Kacha 46 23 2 Pucca 74 37 3 Semi Pucca 80 40 Total 200 100 Source: Socioeconomic survey of the project area by NHA consultants.

3.4.9 Household Size

52. During the Socio-economic survey respondents were also inquired about their house sizes to see the living standard of the respondents. Table 3.5 shows that 36% of the respondents have their house area up to 5 marla and 52% of the respondents have their house size in the range of more than 5 marla but less than 15 marla. 9% respondents have big houses and have house area around 1 kanal and 3% respondents have large size houses more than 25 marla.

Table 3.5: Household Size Sr. No Area (Marlas) Number Percentage (%) 1 Up to 5 72 36 2 5 – 15 104 52 3 15 – 25 18 09 4 More Than 25 06 03 Total 200 100

3.4.10 Available Social Amenities in the Project Corridor

53. During socio-economic survey, to develop the social baseline of the Project Area, the respondents were inquired about the utilities in their homes. Most of the respondents (91%) had electricity in their homes whereas 39% had the facility of sewerage in their homes. On the other hand 27% have land line telephone facility and 6% have facility of water supply in their homes. Table 3.6 presents the social amenities available in the project area.

Table 3.6: Social Amenities S. No Social Facility Number Percentage (%)

1 Electricity 182 91

2 Sewerage (Open Drains) 78 39

3 Telephone (Land Line) 54 27

4 Water Supply 11 06

Source: Socioeconomic Survey of the Project Area by NHA Consultant.

3.4.11 Education Facilities

54. Being rural area the project corridor villages lacks educational facilities. The basic education institutions for primary and middle level education are located in the project corridors; however, for secondary level and higher education the students have to travel to nearby villages with secondary level educational institutes or towns for higher education. Table 3.7 below shows the status of educational institutions in the project area.

Table 3.7: Education Facilities in the Project Area Interchange-2 Interchange-3 Interchange-1 Type of Institution (Chiraghabad, (Sir Mehdi (Aminpur, 59 JB) 334JB & 336JB) Shah, 303JB) Primary 01 03 00 Middle 02 00 02 High 02 01 00 Total 05 04 02

3.4.12 Educational Status in the Project Area

55. Socio-economic survey of sample population reflects that ratio of literate and illiterate respondents as 85% (170) and 15% (30) respectively. Out of 170 literate respondents, 27% had primary education, 19% up to Middle and Matriculation respectively, 11% intermediate and 7% were up to graduate. 3% has education level up to master level. Educational status of the respondents is shown in the Table 3.8.

Table 3.8: Educational Status Percentage Sr. No Education Level No (%) Illiterate 30 15 1 Primary 53 27 2 Middle 37 19 3 Matriculation 38 19 4 Intermediate 22 11 5 Graduation 14 07 6 Master Level 06 03 Total 200 100 Source: Socioeconomic Survey of the Project Area by NHA Consultant.

3.4.13 Health Facilities

56. In each Chiraghabad and Sir Mehdi Shah Interchange there is a Basic Health Unit (BHU), and people of Aminpur interchange go to nearby village 60/JB for basic health facility. In case of sever ailment the people of the area visit Faisalabad where the better health facilities are available.

3.5 Socioeconomic Status of the APs

57. Social stratification of the project area shows that all AFs belong to the agricultural community and are impacted by loss of agricultural land in general. Construction of all three interchanges will affect 172 families and the total number of APs is 1097 comprising of 574 male and 523 female population. Although impact data reflect the some parcels of land are in the name of female members of some families but the land is administered and managed by the male members of that family so no female headed household is encountered during project census.

3.6 Occupation and Income Analysis of APs

58. Due to small land holdings the affected families do not have total reliance on the agriculture and they have been engaged in other professions as well to earn their livelihood. The professional analysis shows that Out of total 172 affected families only 17% are cultivating land, while rest 17% are shopkeepers, 11% are government employees, 10% are private employees, 14% associated with their own businesses, 9% are laborers and 11% are drivers whose land is being cultivated by any one member of their house hold. The income analysis shows that.

59. (41%) had incomes up to Rs.24,000–34,000. 22% respondents belonged to the income group ranging between Rs.14,000 to 24,000/month, and 13% had an income between14,000– 24,000/month. 16% had income more than Rs.44,000/month and 9% had income level less than 14,000. The income analysis shows that only 9% AFs had their income levels below OPL.

Table 3.9: Professional and Income Analysis of the APs Sr. Sr. No. Income Level Agriculture. Shopkeepers Government Employees Private Employees Business Man Laborers Drivers Total Percentage 1 Less than 14000 (OPL) 7 3 0 1 0 4 0 15 9% 2 14000-24000 9 5 6 2 3 8 4 37 22% 3 24000-34000 10 15 8 7 4 10 16 70 41% 4 34000-44000 2 3 2 3 9 1 2 22 13% 5 44000 & above 2 1 5 6 12 0 2 28 16% Total 30 27 21 19 28 23 24 172 100% Source: Socioeconomic Survey of the Project Area by NHA Consultant.

3.6.1 Vulnerable APs

60. There are total 155 AFs, who will be impacted due to loss of agricultural land. The census reflect that the land loss is insignificant in most of the cases and about 87 53% land owners will lose less than 10%, 53 32% land owners may lose 10%–20%, 16 (10%) may lose 20%–30%, 5 (3%) may lose 30%–50% and remaining 2 may lose above 50% of their land. As discussed above due to small landholdings in the project area people have also developed other sources of income in addition to the agriculture resource dependency. Therefore, to determine the vulnerability the information about monthly income of APs from all sources was also collected and analyzed and the income status of the APs was related to the official poverty line (OPL). The AFs with their monthly income from all sources below the OPL are considered vulnerable APs. The income analysis of the AFs shows that there are total 10 AFs with monthly income below the OPL including 02 AFs in agriculture, 3 in shop keeping, 1 in private employment and 4 in labor categories. .

61. For this purpose the OPL of Rs.879 per capita/month were estimated by the government in 2004–2005 (Pakistan Economic Survey, 2005–06, Table 41) is taken as standard and adjustment to arrive latest OPL are made as per inflation. The latest estimate of inflation–adjusted poverty line per capita per month comes to Rs.1942.66 in 2012. As mentioned earlier that out of 172 AFs/, there are 15 AFs whose income fall below the inflation adjusted OPL and they are considered as vulnerable for this project.

3.7 Gender Issues and Analysis

3.7.1 Educational Status of Women

62. A total of 50 women from the project area were interviewed by the female staff. 25% of the population surveyed was comprised of females. As per level of awareness on the project, most women were aware of the construction of road project. Table 3.10 indicates the educational status of women surveyed. 48% are educated up to school level, 38% have college level education and only 14% ladies are educated up to university level. This reveals that they

were free in getting education if they were willing and educational facilities were available in their surrounding areas.

Table 3.10: Educational Status of Women of the Project Area Sr. Educational Level No. Institute Percentage Number (%) 1 School 24 48 2 College 19 38 3 University 07 14 Total 50 100

3.7.2 Access to Health Facilities

63. Out of total women respondents, 26% had access to lady health visitor, 18% consult government doctor, 20% consult private doctor and 36% consult quacks in case of sickness/ ailments. Table 3.11 reflects the health status of women surveyed.

Table 3.11: Women Access to Health Facilities Access to Health Facility Health Facility Sr. Number Percentage No. (%) 1 Nurse/ LHV 13 26 2 Govt. Doctors 09 18 3 Private Doctors 10 20 4 Quacks 18 36 Total 50 100

3.7.3 Project Impacts on Women’s Mobility and Access

64. During public consultation sessions with the females, it was observed that very few girls travel for education or accessing vocational facilities located in the urban centers and occasionally travels for consulting doctors. The women also informed that sometimes they facilitate their male partners in the fields by cutting and chopping fodder for livestock. They apprehended that during and after construction of the motorway their routine movements in their fields may become hampered due to presence/movement of the construction machinery and blocked pedestrian walkways. The participants were apprised that the construction machinery will be plied on service road along motorway only and proper signage will be provided to facilitate the locals for carrying out their daily chores during construction works. However, on all designated farm roads the underpasses are provided to facilitate the community to go across motorway.

3.7.4 Power of Decision at Household Level

65. In general the participation of women in the decision making about outdoor activities is minimal and most of the decisions are taken by the male members of the family. However, the women in project corridor exercise their authority to decision making in household activities. Table 3.12shows the women participation in decision making at household level in various matters.

Table 3.12: Power of Decision Making at Household Level Women participation in Sr. No Yes No decision making

1 Household expenditures 31 19

2 Children’s education 37 17

3 Children’s marriage 28 22

4 Asset purchase & sale 07 43

5 Work outside household 05 45

6 Access to health 46 04

SECTION 4

INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

4.0 General

66. The consultation and information disclosure to the APs and other stakeholders during project planning, designing and implementation stages is a key to sustainable development. Likewise the objectives of resettlement planning and implementation can be achieved prudently by effective consultative process through different stages of the project cycle. So during preparation of the land acquisition and resettlement plan requisite information about project impacts, ADB’s policy guidelines and land acquisition parameters was disseminated to the APs at large while structured consultations were carried-out with other stakeholders from different fields of life. . The consultation and public disclosure was undertaken in two phases. Firstly, at the stage of conducting the socioeconomic survey and census of the APs and, a LARP was developed based on the findings of these surveys and public consultation process subsequently. This was followed by another chain of sessions focused on the LARP disclosure to the APs.

4.1 Identification of Stakeholders

67. Project affected persons losing their assets and project executors including APs, PMU M4Section-1, and local revenue staff was taken as primary stakeholders and their concerns were recorded during census/ socio-economic survey and compiling information about the project and land acquisition process. While other stakeholders identified include the village Numberdar and villagers in near vicinity of all three interchanges, local residents, government officials from different line government departments, shop owners, public representative and community based organizations in respective villages.

4.2 Public Consultation in the Project Area

68. Public consultation and participation is a continuous two way process for information dissemination and engage local communities during project implementation. Besides census and Socio-economic survey sufficient number of consultations was arranged to ensure peoples’ participation in the planning and preparation of this resettlement plan. Different sections of APs and other stakeholders were consulted through focus group discussions and individual interviews to promote public understanding and fruitful solutions of developmental problems such as local needs and problem and prospects of resettlement. For group discussion, scoping sessions were carried out according to the schedule indicated in Table 4.1 during the fiscal year 2011–2012. Over and above, the EA has appointed a team of land acquisition staff and Social Mobilizers working in field to keep the consultative process ongoing throughout the project cycle and ensure timely dissemination of information to and forth to APs and the project executors. From consultations results it was inferred that people were aware of the need of construction of M4 with its interchanges at specified locations, and they indicated their support for the present NHA Project.

Table 4.1: Details of Public Consultations (Section-1) – Interchanges Sr. No. Date Venue Village Participants Dera Ch. Saleem Gujar 1 04-08-2011 Chak No. 303 JB 303 JB 03 (Tehsil Gojra) Dera Ch. Saleem Gujar 2 05-08-2011 Chak No. 336 JB 336 JB 10 (Tehsil Gojra) Rana Muhammad Sadiq Ice 3 05-08-2011 Factory Chak No. 59 JB 59 JB 50 (Tehsil Faisalabad)

4 29-11-12 Govt. Boys High School 59 JB 19

336 JB 5 29-11-12 Dera Haji Ashraf 10 Rani Chak

6 29-11-12 Govt. Boys High School 303 JB 08

Total 03 63

69. During the consultation process along with census and socio-economic survey, efforts were made by the study teams to:

 Provide Project introduction and discuss objectives and goals of resettlement planning with Stakeholders.  Ascertain views of the APs about acquisition of Land for Interchanges with merits and demerits of dropping land within Interchanges loops  Understand community perception on land acquisition matters including land prices assessment methodology, concerns and involvement  Comprehend community concerns on resettlement related issues including but not limited to valuation procedure of affected assets, eligibility criteria, compensation entitlement provisions and grievance redress mechanism for land and non-land assets.  Discuss compensation package for APs with compensation payment mechanism.  Ascertain efficacy of measures proposed and required to ensure uninterrupted access to the land on both sides of loops, carriageway for all the three Interchanges.  Uncover options and opportunities available to put land not required (within loops) in other productive uses

4.3 Findings of Group Discussion

70. Some of the major issues that were discussed and feedback received from the villagers during the course of the consultations and measures taken are summarized in the Table: 4.2 and the details of public consultation meetings are presented in the Appendix-3.

Concerns raised Measures taken Proper access to the land within loops of the To ensure access to the land on both sides of the interchanges should be provided otherwise the interchange carriage way service roads are provided cultivation will not be possible. in design to facilitate movement of farmers to access their fields for continued cultivation. Affected water courses should be maintained to Irrigation Department has been taken on board while the existing levels (if re-routed) to ensure un- the community participation will also be ensured interrupted irrigation in command areas. during designing and re-routing of water courses to Due to construction of interchange exist entry ensure that existing levels of water courses are carriageway; peasants will face difficulty to irrigate maintained. their fields across fenced road. Therefore, along For crossing water culverts will be provided with water crossing channels walk through adequately in consultation with community before passages may be provided at appropriate places commencement of embankment works for to ensure irrigation of fields within loops. interchanges carriageway. Name of interchanges should be site specific so If APs submit their request Project office will change the name of Aminpur interchange may be changed the name according to the demand of local as Nurwala interchange community with due approval of General Manager M-4. The cost of land mismatches prevalent market The land acquisition is governed as per provisions of price of land and the affected persons are not LAA 1894. Local revenue staff i.e. Patwari of the involved during assessment of market value of circle coordinates with local community/Aps to land and land acquisition process. determine market rates as of Publication of Section 4 Notification and reports it to DPAC for estimating market value. Besides Notices under Section 5-A & Section 9 are issued to APs for rendering objections and compensation claims. Subsequently the LAC holds inquiry and announces compensation award including cost of land with other entitled compensations and allowances. The APs should participate in inquiry proceedings and raise their concerns regarding compensations. The APs should be paid all types of compensation All the payment including cost of assets lost and before taking possession of land; entitled allowances will be paid prior to taking possession of land for commencement of construction works. Plantation of trees along the Motorway to reduce After completion of motor way a tree plantation air and noise pollution. program will be implemented to replenish the vegetative cover on both sides of carriage way to help abate pollution during Motorway operations. The local labor should be preferred during Local customs and traditions have been respected construction work, to possible extent avoid social and congenial relations with local communities have disruption due to migrant labor. been promoted through continuous consultative process and by encouraging contractors to prefer employment of locals wherever possible as skilled and unskilled labor. The mobility of locals will be restricted and safety Project construction camps have been constructed of their livestock and other valuables will be away from existing settlements and built-up areas. In compromised due construction of campsites near order to avoid restricting the mobility of local people, settlements and movement of construction construction vehicles will remain confined within their machinery. designated areas of movement, proper traffic controlling personals will be deployed on crossing roads, safety signage and cautions will be placed, speed limits will be maintained and daytime movement of construction machinery on public road will be restricted.

Concerns raised Measures taken The land within loops should be allowed to put NHA Codes impose restriction on construction of under other productive uses like establishment of buildings within 500 meters from motor way without small road side vendor markets, filing stations or prior permission (NOC from NHA). The owners are service areas by the land owners. at liberty to utilize their land provided that the NOC requirements as provided in NHA codes are met with.

71. The process of consultations with the APs continued till finalization of this LARP, through study team field representatives of NHA, social mobilizers and Revenue Department, who kept visiting the area under acquisition for revalidation, re-verification and reassessment regarding land measurement, structures, trees etc. As the consultative process is an ongoing activity throughout project cycle so, NHA’s engineering, land staff, social mobilizers and affected persons committees established in all affected villages will keep it continued to maintain a working level relation with local community and disseminate information about the project and implementation of resettlement plan provisions, delivery of compensation, recording and redress of grievances at project level.

4.4 Disclosure of LARP

72. Key features of this LARP have already been disclosed to the APs during consultations meetings, conducting the census and socio-economic surveys and field level informal interaction between the APs, consultants and NHA staff. However, following steps will be undertaken for disclosure of LARP as per provisions of the LARF.

73. The draft LARP will be disclosed to APs. For this purposes an information booklet having summary of impacts, asset valuation, unit rates, eligibility criteria, compensation entitlements, compensation delivery and grievance redress mechanism with institutional arrangements for implementation of LARP has been prepared specifically for this purpose. This information booklet will be translated into Urdu and will be distributed to al all Affected Persons (APs) and Affected Person Committees (APCs). It will enable the APs to read it by themselves and be aware of their entitlements, unit rates of compensation/income restoration and rehabilitation assistance and relocation assistance, payment procedures available for various types of APs as given in the ‘entitlement matrix’, and grievance redress mechanism.

74. After approval by the ADB, the LARP will be uploaded on NHA and ADB web sites while hard copies of the approved LARP will be placed in offices of GM EALS and GM M-4, PD, LAC and Supervision Consultants for M4 Project, Tehsil level revenue offices in Faisalabad and Gojra as well as respective union councils. Summary LARP will be translated into Urdu by the EALS/NHA covering information about project impacts; asset valuation, unit rates, eligibility criteria, compensation entitlements, relocation options, compensation delivery and grievance redress mechanism with institutional arrangements and shall be disclosed to the APs, APCs and other stakeholders by Project Office through social mobilizers.

75. A schedule explaining the date, time and venue for disbursement of compensation cheques for each affected village, compensation claim sheets for each AP and compensation disbursement and asset removal notices will be prepared in Urdu and distributed to all APs.

SECTION 5

GRIEVANCE REDRESS MECHANISMS

5.0 Grievance Redressal/Resolution Mechanism

76. During different stages of LARP preparation and implementation, it is likely that displaced persons have some grievances related to project actions, their lost assets, compensation, and disbursement process and compensation delivery. To resolve all such issues, a grievance redress mechanism will be available to allow APs appealing any disagreeable decision, practice or activity arising from project implementation land or other assets assessment, acquisition and compensation.

77. Although in Land Acquisition Act, 1894 a legal mechanism is available to address the concerns of legal title holders about asset evaluation, land ownership and payment of compensation at pre and post award stages but it does not provide a redress system for APs grievances other than land valuation, ownership and payments for those who don’t possess legal title. The LAA mechanism does not enable the project executors and the APs to resolve their issues other than land acquisition at local level. So to address the gaps a project grievance redress mechanism will be established to address/resolve redress the project related issues including the APs issues or grievances related to land acquisition, land prices, land ownership/classification and payment of land compensation, and resettlement and relocation related issues.

78. For timely resolution of the issues if any and investigate the complaints and make decisions thereto, a gender sensitive Grievance Redress Cell at the project level has already been notified (office order no 1(1)/NHA/EALS/2009/26 dated 8-10-2009 attached as Annex- VII) and working for M-4 and is placed at Project Director’s Office at Faisalabad. Although the GRC is the focal unit for grievance redress at the project level, however to facilitate the APs to discuss/resolve their issues at village level or raise concerns to Project GRC if the issues are not resolved at village level and elevate the grievances to second level of GRM at PMU level in NHA Head Quarters in case of disagreement with GRC decision a two tier grievance redress mechanism is proposed as part of Land Acquisition and Resettlement Plan. The representation of the gender is ensured at all levels of GRM by inducting female members in the GRCs (Project Level), APCs (village level already formed and are functional) and EALS (NHA HQ level). The grievance redress mechanism will ensure AFs/APs access to a grievance redress/ resolution mechanism that openly and transparently deals with the grievances and makes decision in consultation with all concerned that are consistent with ADB Involuntary policy requirements and local laws.

79. Wherever necessary, GRC will review these records, along with the implementing agency and monitoring agency to verify the status in order to arrive at a decision.

5.1 First Level of GRM

80. If the grievance is not resolved at local level it shall be raised to formal grievance redress mechanism which is first level of GRM. A formal complaint will be tendered with the Project Grievance Redress Cell through the Social Mobilizers. Once the complaint is submitted with the Project GRC, it shall record it in the complaints register, without delay, and initiate the process of investigation through its technical and resettlement field teams. The complaint register is being

maintained by the Assistant Director Land in project office. The field teams (Land Staff with assistance from social mobilizers) will investigate into the complaint meet the aggrieved person, APC representatives and the local community and submit its fact finding report and recommendations to the GRC within 7 days of recording of complaint with GRC. After receipt of the fact finding report the GRC will hear the aggrieved person and decide the complaint based on ground facts but in accordance with the agreed entitlements and provisions in the LARP/entitlement matrix. However, if aggrieved person is not satisfied he/she will be allowed to elevate the complaint to next level of GRM for resolution of his grievances. The GRC will decide the grievances within, 21 days of receipt of complaint in GRC and if the decision is not arrived in stipulated time its reasons will be recorded and the decision will be arrived in next 7 days. If the final decision by GRC is not acceptable to the APs, they may pursue their grievance to second level of GRM or opt for a legal course if they wish to do so.

5.2 Second Level of GRM

81. In case of dissatisfaction of the AP, the grievance will be referred by GRC to second level of GRM i.e. at PMU in NHA HQ, within 07 days after communication of decision by the GRC. The PMU will acknowledge the complainant about his complaint, scrutinize the record of the GRC, investigate the remedies available and request the complainant to produce any record in favour of his claim. After thorough review and scrutiny of the available record on complaint visit the field and collect additional information if required. Once the investigations are completed the PMU shall get its recommendations approved by Member Aided Project and forward them to LARU and the complainant accordingly within 21 days of receipt of the complaint. If the complainant is still dissatisfied with the decision, he can go to the court of law, if he/she wishes so.

5.3 Constitution and Function of the GRC

82. The GRC headed by the Director Land, M-4 is established for the project. The GRC have representative from Project Management Unit including Land Staff and Resettlement specialist Supervision Consultants, aggrieved AP/APs and/or representatives of AP/APs, Social Mobilizers and other interested groups if any. The GRC will meet at least once in a month. Other than disputes relating to ownership rights and against award under the court of law, GRC will review and investigate grievances involving all resettlement benefits, compensation, relocation, and other assistances provided under LARP provisions. To ensure gender involvement in grievance redress mechanism a woman representative (may be social mobilizer) will be included to participate in GRC meetings. GRC will perform following functions:

 Prepare and maintain a complaint register to enter each and every complaint either received directly from the AP or through HQ or other outside agency i.e. EDOR/ DOR office, irrigation department, forest department etc.;  Carefully categorize all complaints under separate heads as against price fixation of land, crops, tree, structures etc or problems related with provision of resettlement benefits including relocation/rehabilitation assistance or any other support provided in LARP. ;  The focal person of GRC shall prepare and submit its report containing detailed status regarding registering and disposal of complaints/grievances to chairman, LARU and Chairman PMU on monthly basis;  The GRC shall ensure that all field visits and consultation with the APs are properly documented, snapped and recorded on the video. Such record shall be placed in the

PMU office.  GRC after the site visit shall prepare a report with recommendations and solutions and submit the same to Chairman, PMU and resolve the problem accordingly; and  GRC shall close the complaint file by communicating with the complainant.  The GRC is composed of the following members: Director (L&S) M-4 Convener DD (L&S) M-4 Member A.D (L&S) M-4 Member LAC 1 Patwaris 2 Office Assistant (to maintain record) Social Organizer/ Mobilizers (As per requirement female member)

83. Presently, the GRC notified for M-4, lacks member from the APs. Since the same GRC with additional staff under the head of Director Land will work for Section-I Interchanges, therefore, APs representative will be included in the GRC after LARP is approved by ADB.

84. The complainants will be exempted from all administrative and legal fees incurred due to the grievance redress procedures. All complaints received in writing (or written when received verbally) will be documented.

Table 5.1: Grievance Resolution Process Land/ Crops Compensation Issues Project/ Other Items Compensation Issues 1. First, complaints resolution will be attempted at 1. First, complaints resolution will be attempted at village level through the involvement of the LARU village level through the involvement of the LARU and informal mediators. and informal mediators. 2. If still unsettled, a grievance can then be lodged to 2. If still unsettled, a grievance can be lodged to the the LAC who has 30 days to decide on the case. project GRC, which will have 30 days to respond. 3. If no solution was reached a grievance can be 3. If no solution was reached a grievance can be lodged with support of the LCC to the PMU. The AP lodged with support of the project GRC to the PMU. must lodge the complaint within 1 month of lodging The AP must lodge the complaint within 7 days the original complaint with the LAC and must after communication of GRC’s decision on his produce documents supporting his/her claim. The original complaint with the PMU and must produce PMU will provide the decision within 21 days of documents supporting his/ her claim. The PMU will registering the complaint. The PMU decision must be provide the decision within 21 days of registering in compliance with this LARF provisions. the complaint. The PMU decision must be in compliance with this LARF provisions. 4. Should the grievance redress system fail to satisfy 4. Should the grievance redress system fail to the AP? They can further submit their case to the satisfy the AP, they can further submit their case to appropriate court of law as per the process set out in the appropriate court of law. Sections 18 to 22 of the LAA (1894).

SECTION 6

LEGAL AND POLICY FRAMEWORK

6.1 General

85. The resettlement issues of the subproject are addressed through applying legal framework and principals provided in existing legislation and Policies of Government of Pakistan, Provincial Government of Punjab and Asian Development Bank as per provision agreed and provided in approved Resettlement Framework for National Trade Corridor Highway Investment Programme (NTCHIP). This LARP is prepared based on the review and analysis of all applicable legal and policy frameworks of the country and ADB IR policy requirements. Sections below summarizes national and provincial laws and regulations, ADB’s Safeguard Policies and frameworks that apply to the project and identify and addresses gaps between country laws and ADB's policy requirements. It also provides determination of unit rates to compensate different types of impacted assets and provisions for compensation entitlements for AFs/APs.

6.2 Legal Framework

86. The existing law and regulations on land acquisition and resettlement are described as under:

6.2.1 Pakistan’s Law and Regulations on Land Acquisition and Resettlement

87. The 1894 Land Acquisition Act (LAA) with its successive amendments is the main law regulating land acquisition for public purpose. The LAA has been variously interpreted by provincial governments, and some provinces have augmented the LAA by issuing provincial legislations. The LAA requires that following an impacts assessment/valuation effort, land and crops are compensated in cash at market rate to titled landowners and registered land tenants/users. The LAA 1894 read with Punjab Land Acquisition Rule 1983 mandates that land valuation is to be based on the median rate over the past 1 year, from the issue date of section- 4. Due to widespread land under-valuation by the Revenue Department, current market rates are now frequently applied with an added 15% Compulsory Acquisition Surcharge as provided in the LAA.

88. Based on the LAA, only legal owners and tenants registered with the land revenue department or with formal lease agreements are eligible for compensation/livelihood support. For those without title rights, there are no laws in Pakistan or in Punjab province. However under Punjab Katchi Abadis Act 1992, the occupants of declared Katchi Abadis are subject to be shifted with prior approval of government in case of land is acquired for public purpose.

89. The LAA does not openly mandate for specific rehabilitation/ assistance provisions benefiting the poor, vulnerable groups, or severely affected APs, nor does it overtly provide for rehabilitation of income/livelihood losses or resettlement costs. This, however, is often done in many projects through ad hoc arrangements negotiated between a specific EA and the APs.

90. The law deals with matters related to the acquisition of private land and other immovable assets that may exist on it when the land is acquired for public purpose. A listing of the Sections of the Act and their salient features is given in Table 6.1. The right to acquire land for public purposes is established when Section - 5 of the LAA is triggered. The LAA specifies a

systematic approach for acquisition and compensation of land and other properties for development projects. It stipulates various sections pertaining to notifications, surveys, acquisition, compensation and apportionment awards along with dispute resolution, penalties and exemptions. Surveys for land acquisition are to be disclosed to the displaced persons.

Table 6.1: Salient Features of the LAA 1894 and Successive Amendments

Key Sections Salient Features of the LAA 1894 Section 4 Publication of preliminary notification and power for conducting survey. Section 5 Formal notification of land needed for a public purpose. Section 5a covering the need for enquiry of the concerns or grievances of the affected people related to land prices. Section 6 The Government makes a more formal declaration of intent to acquire land. Section 7 The Land Commissioner shall direct the Land Acquisition Collector (LAC) to take order the acquisition of the land. Section 8 The LAC has then to direct that the land acquired to be physically marked out, measured and planned. Section 9 The LAC gives notice to all APs that the Government intends to take possession of the land and if they have any claims for compensation then these claims are to be made to him at an appointed time. Section 10 Delegates power to the LAC to require and enforce any person/AP to make statement containing the name of any other interested persons with nature of interest in land to be acquired or any part thereof as co- proprietor, sub-proprietor, mortgage, and tenant or otherwise. Section 11 Enables the Collector to make enquiries into the measurements, value apportionment, claim and then to announce the final “award”. The award includes the land’s marked area and the valuation of compensation and apportionment of compensation among all interested persons etc. Section 16 When the LAC has made an award under Section 11, he will then take possession and the land shall thereupon vest absolutely in the Government, free from all encumbrances. Section 18 In case of dissatisfaction with the award, APs may request the LAC to refer the case onward to the court for a decision. This does not affect the Government taking possession of land. Section 23 The award of compensation for the owners for acquired land is determined at its market value plus 15% premium in view of the compulsory nature of the acquisition for public purposes. Section 28 Relates to the determination of compensation values and interest premium for land acquisition. Section 31 Section 31 provides that the LAC can, instead of awarding cash compensation in respect of any land, make any arrangement with a person having an interest in such land, including the grant of other lands in exchange. Section 48A If within a period of one year from the date of publication of declaration (LAA-1986) under Section - 6 in respect of any land, the Collector has not made an award under Section - 11 for such land, the owner of the land shall, unless he has been to a material extent responsible for the delay be entitled to receive compensation for the damage suffered by him in consequence of the delay.

6.3 ADB’s Involuntary Resettlement Safeguards

The ADB Policy on Involuntary Resettlement is based on the following principles:

a. Involuntary resettlement should be avoided where feasible. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. b. People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the project. c. People affected should be informed fully and consulted on resettlement and compensation options. d. Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities. e. The absence of a formal legal title to land by some affected groups should not be a bar to compensation; particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help them improve their status. f. As far as possible, involuntary resettlement should be conceived and executed as a part of the project. g. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. h. Costs of resettlement and compensation may be considered for inclusion in Bank loan financing for the project. * Source: Involuntary Resettlement, Asian Development Bank, Manila, November 1995.

6.4 Comparison of Key LAA (1894) and ADB Policy Principles and Practices

91. Differences between Pakistan Land Acquisition Act (LAA) and ADB Policy on resettlement are outlined in Table 6.2. The objective of this comparison is to identify if and where the two sets of procedures are in conformity with each other and more importantly where there are differences and gaps. The key issue is that by following the ADB assessment procedures, the requirements of the Pakistan and province of Punjab regulatory systems are in compliance. Conversely, if the Government of Pakistan and also the province of Punjab systems are followed then there are likely to be shortfalls in comparison to the ADB requirements if adequate gap filling measures are not proposed. The key ADB Policy Principles are (i) the need to screen the project early on the planning stage (ii) carry out meaningful consultation (iii) at the minimum restore livelihood levels to the pre-project conditions and improve the livelihoods of the affected vulnerable groups (iv) prompt compensation at full replacement cost is to be paid (v) provide displaced people with adequate assistance (vi) ensure that displaced people who have no statuary rights to the land that they are working are eligible for resettlement assistance and compensation for the loss of no-land assets and (vii) disclose all reports.

Table 6.2: Comparison of LAA and ADB’s IR Policy Pakistan’s Land Acquisition Act, 1894 ADB Involuntary Resettlement Policy 1995 Government does not have a national or ADB IR Policy encompasses principles on the provincial policy on resettlement and rehabilitation resettlement and rehabilitation of the project of affected persons. displaced persons. Land compensation only for titled landowners or Lack of title is not a bar to compensation. Provides holders of customary rights. Only registered land equal treatment of those without clear land titles owners, share croppers and leaseholders are (for example squatters, or other informal settlers) in eligible for compensation of crop losses. terms of their entitlements for resettlement assistance and compensation for the loss of non- land assets including crops. Tree losses are compensated based on Tree losses are to be compensated according to outdated officially fixed rates by the relevant market rates based on productive age or wood Forest and Agriculture Departments. volume depending on tree type. The entire removed tree will remain the property of the owner for them to salvage. Land valuation based on the average registered The valuation of land and other assets is the full land transfer rate over 1 years prior to Section 4 replacement costs determined on the basis of the of LAA being invoked. 15% compulsory land fair market values of land or assets covering the acquisition charges are paid over and above the developmental costs, transaction costs and other assessed compensation. applicable payments that may be required. The valuation of structures is based on official The valuation of built-up structures is based on rates with depreciation deducted from gross current market value but with consideration of value of the structure and also 15% of the value cost of new construction of the structure, with no of salvage materials. deduction for depreciation but the APs allowed to take the salvage material free of cost. There is no provision for income restoration and The ADB IR Policy requires rehabilitation for lost rehabilitation measures. There are also no income and special AP expenses during the special allowances for the displaced poor and relocation process. There are also provisions to other vulnerable groups including women. There be made for transitional period costs and are no requirements to assess opportunities for livelihood restoration. It also require to improve benefit sharing the standard of living for displaced poor and other vulnerable households , including women to at least national minimum standards by providing access to legal and affordable housing, land and income generating resources. The decisions regarding land acquisition and the Information related to the quantification and amounts of compensation to be paid are valuation of land, structures, other immovable published in the official Gazette and notified in assets, entitlements and amounts of accessible places so that the people affected are compensation and financial assistance are to be well informed. disclosed to the displaced persons prior to project appraisal period. Preparation and disclosure of Resettlement Resettlement Plans and monitoring reports are Plans as well as monitoring reports not required. prepared and disclosed. Grievances are redressed through the formal Provide mechanisms that are accessible locally land acquisition process at a point in time or and available throughout project implementation. through appeals to the court.

6.5 Remedial Measures to Bridge the Gap

92. Project specific resettlement issues have been addressed to assist non-titleholder persons and bridge the gap between existing practice and the main guidelines of the ADB IR Policy with regards to involuntary resettlement. To reconcile the inconsistencies between

Pakistan LAA (1894) and the ADB IR Policy, the NHA has prepared the LARF for the Project, ensuring that compensation is provided at replacement cost for all direct and indirect losses so that no one is worse off as a result of the project. The AFs have been provided with necessary allowances that may be relocated; suffer businesses losses, or may be vulnerable, as per LARF and ADB IR Policy provisions.

6.6 Compensation Eligibility and Entitlements

93. Land Acquisition and Resettlement tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with Pakistan’s law/ regulations and ADB Policy. Land acquisition act and ADB safeguard policy both watch the interests of APs, if there is any contradiction in policy and law, ADB policy will prevail.

6.6.1 Eligibility

94. Compensation eligibility is limited to a cut-off date which is December 01, 2010 for interchanges 2 and 3, while for Interchange-1; the cut-off date is September 15, 2012. The cut- off date is fixed with the publication of notice under section 4 of land acquisition Act 1894. The AFs, who settle in the affected areas after the cut-off date will not be eligible for compensation. However they will be given sufficient advance notice, to vacate premises and dismantle affected structures and remove salvage from ROW prior to project implementation. Forced eviction will only be considered after all others efforts are exhausted. DPs entitled to compensation or at least rehabilitation under the Project are:-

 All APs losing land either with legal title/ traditional land rights or without;  Tenants and sharecroppers whether registered or not;  Owners of buildings, crops, plants or other objects attached to the land; and  DPs losing business, income and salaries. 6.6.2 Assessment of Compensation Unit Values of Land at Replacement Cost Basis

95. The land (Agricultural/Residential/Commercial) has been valued at market prices by the District Price Assessment Committees as per laid guidelines by BOR. During evaluation of land the DPAC took into consideration, i) composition/classification of land being acquired; ii) location of land and its surroundings including distance from main road; iii) rate of valuation of the same land notified in the valuation table; iv) yearly average sale price of similar land in the locality preceding notification under Section. 4; v) prevailing market rates reported by the local revenue authorities. The DPAC meeting for Interchanges II & III was held on May 17, 2012. While due to shifting of one loop of Interchange-I on opposite side of Aminpur road to avoid the commercial and residential structure falling under impact of originally designed loop two DPACs meetings were held on May 30, 2012 and February 13, 2013 to recommend land compensation rates based on market value for BOR’s review and approval. The BOR after thorough scrutiny approved the DPAC recommended Land Prices for all the three interchange- i and ii& iii. The DPAC recommended land rates with 15% compulsory land acquisition surcharge (CLAS) are taken as unit rates for land compensation as market value of land under the LAA 1894 to pay compensation calculated under law (LAA/BOR) for land component. Ggovernment fees, Taxes/ transaction costs are neither applicable and nor are deduced from the compensation package at time of payment.

96. The compensation rates determined through process under LAA 1894 are perceived to be undervalued and thus do not meet ADB’s requirement of Replacement Cost as envisaged

under ADB IR Policy. To identify the gap (if any), the process of land valuation has been reviewed through an independent valuation firm (colliers). The gap identified by the valuation firm between compensation to be paid under BOR and the Replacement Cost as required under ADB Policy, will be paid as an additional compensation/assistance to all entitled land owners through the project authorities over and above the land Compensation Calculated under Law (LAA/BOR) to make it Replacement Cost complying with ADB’s IR Policy Principals. For this purpose a provisional amount is provided in the LARP budget over and above the land compensation calculated under the law (LAA/BOR) for payment of additional compensation/ assistance if required.

97. As per recommendations of Independent Valuation Study by Colliers using international valuation standards and valuation methodology for M-4 Interchanges land parcels, undertaken in July – August 2013 and shared with NHA in December 2013) and has been acquired in Chak No. 303 JB, 336 JB & 334 JB of Tehsil Gojra and Chak No. 59 JB of Tehsil Faisalabad for construction of Interchanges of M-4 Section-I. M/S Colliers observation is on valuation of land at Interchanges. The notification u/s 4 of LAA 1894 was published for Chak No 303 JB, 336 JB & 334 JB in 2010 and land award u/s 11 of LAA 1894 announced in 2013. However, in case of Chak No. 59 JB, acquisition proceeding was done well in time and award announced in 2013.

98. Colliers recommended that land compensation fixed by BOR for Chak No 59 JB was approximating the ADB’s replacement cost, and there was no need for any topping up of price. However, in case of Chak No. 303 JB, 336 JB & 334 JB, land compensation considered on lower side, cause delay in announcement of awards which resulted inflation in current market prices. In order to bring land compensation of 303 JB, 336 JB & 334 JB at par with ADB’s Safeguard Policy, Colliers recommended additional payment of allowance to meet the gap between BOR price and RC. For this, NHA will pay the price differential of Rs.2.926 million to the APs. All payments including additional payment of differential will be paid before mobilization of contractor on the site.

6.6.3 Assessment of Compensation Unit Rate for House Building/Structures

99. For the assessment of unit rates for different types of affected structures, a team of engineers was constituted by the General Manager M-4. The team surveyed the market for current market rate analysis of construction material and consulted other line departments like buildings department to arrive unit rates for compensation of different types of affected structures on replacement cost basis. The assessment of houses buildings and different asset was made in April, 2012. For Assessment purpose the structures were standardized and categorized in eight categories (A1, A2, B1, B2, D1, D2 D3, and D4) based on construction type and unit rates were determined on the basis of construction material used for structure in each category to ensure compensation is on replacement value.

6.6.4 Assessment of Compensation Unit Values of Crops

100. Annual crops are valued at market rates at the farm gate for a full 1 year crop. Current crops rates are received from relevant agricultural department in June, 2012 which has a mechanism to update crop rates every year based on market survey. In the year 2012 fresh rates of crops are taken from Ayub Agriculture Research Institute, Faisalabad (Letter attached as Annex-VIII), the affected crops are assessed on the basis of standing crops on the affected land. The crop estimation is calculated based on the rotation of crops. Various rates are adopted for all the three types of productive land categories.

6.6.5 Assessment of Compensation Unit Values of Trees

101. Fruit trees are valued based on age category (a. 1-2 year; b. 2-5; c. 5 – 12 years & d. Over 12+). Productive trees are valued at gross market value of 1 year income for the number of years needed to grow a new tree with the productive potential of the lost tree. While non- fruit trees are valued on the girth of trunk at current market rates. For valuation of wood and Fruit trees services of Ayub Research Institute, Forest and Horticultural Departments were solicited. The Ayub research institutes provided the unit rates in June, 2012 (Letter attached as Annex VIII) which are based on current replacement value.

6.7 Land Acquisition Process in Punjab under LAA 1894

102. The Land acquisition is governed under LAA 1894 which is primary law for land acquisition in Pakistan. Irrespective of its name the act ibid is provincial Act and each province has made amendments into the Act as per its requirements however, the objective and essence of the Act is almost similar throughout the country. The Land Acquisition Act 1894, as amended from time to time, is the primary law for the purpose of land acquisition in the Province of Punjab. The Act provides for acquisition of land for public purpose. However, to outline detailed procedures for the purposes of acquisition of land, the Government of Punjab (Government) has also framed the Punjab Land Acquisition Rules, 1983 (1983 Rules) under Section 55 of the Act and the Act and the 1983 Rules have to be read together.

103. The land acquisition process starts with publication of Section 4 followed by land survey, land price estimation and formal declaration with exact measurements and the government’s intent to acquire land. As per LAA 1894 provisions the market value is determined by the LAC on the basis of transactions recorded in the land mutation registers preceding one year of issuance of notification under section-4, for each village (revenue estate) separately and are communicated to the EA for depositing the cost of land in treasury under revenue deposits head to be placed at disposal of the LAC. Depositing of estimated land cost is pre-requisite for further processing of land acquisition. However, to reduce the chances of arbitrary assessment of land prices by single authority and ensure transparent and fair assessment of land compensation in strict compliance with the provisions LAA 1894 and LAA Rule 1983 the BOR established District Price Assessment Committees (DPAC)4 in each district to assess compensation and issued guidelines5 for expeditious disposal of land acquisition cases.

104. Each DPAC is staffed by the Collector of the District and Executive Engineer Irrigation (XEN) in case of agricultural land or Excise and Taxation Officer in case of urban/commercial land. Each DPAC is headed by the Collector of the District. The role of the DPAC in the acquisition process commences after the issuance of notification under Section 4. The DPAC evaluates the value of land and other components of compensation with the assistance of various Government Departments. The value of land is the price prevailing on the date of publication of notification under Section 4. Further, according to the 1983 Rules while calculating the estimated price of land, the classification of land, its distance from the road, yearly average sale price6 of similar kind of land, value of similar kind of land in updated

4 Circular 2803-2001/2449 CS-II dated 10-10-2001 superseded by Circular No. 1692-2011/1437-CS-II dated 30-06- 2011 “Formation of District Price Assessment Committee”. 5 Circular No 648-2003/411-S.IV dated 22-04-2003 “Guidelines for expeditious disposal of land acquisition cases”. 6 Yearly Average sale price: “Land sale prices entered in mutation register for one year preceding Notification under Section-4 is calculated by the Revenue staff to determine the yearly average of sale prices for different kinds/types of land to determine estimated land prices for public interest projects.

valuation tables7 and prevailing market rates8 as proposed by the field staff are also taken into account by the DPAC. After examining all said parameters the DPAC estimates land prices for acquisition of land in public interest and submits for Commissioners’ review and approval. The EDOR examines DPAC recommended land rates and forwards these to the BOR on prescribed proforma9 in compliance to the instructions issued by the BOR for its ultimate approval after publication of notice under Section-6 of LAA 1894. Meanwhile these rates are communicated to the EA by the Deputy Commissioner who chaired the DPAC for depositing assessed land cost in treasury and to be placed at the disposal of the LAC for further processing of land acquisition case.

105. Once the DPAC recommended land cost is deposited in the treasury by EA the LAC submits the draft notification under Section 5 with all relevant record including details about land subject to acquisition and a certificate confirming that the EA has deposited the land cost in the treasury as well as the land acquisition through negotiation is not possible to the Commissioner through the Deputy Commissioner of the District for his review and issuance of notification and publication in official gazette. After review, the Commissioner issues the notification under Section-5 which is an formal intent about acquisition of land for public interest. After publication of Section 5 the objection under section 5-A are recorded and addressed by the LAC and case is further processed for subsequent notice under section-6.

106. The LAC submits draft notice under Section-6 of LAA to Commissioner with all relevant record including its findings and recommendations about the objections raised under section 5- A for his review and issuance of the notification under Section-6 and its publication in official gazette. Once the notification under Section 6 is issued the Commissioner submits the DPAC recommended land cost to the BOR for its review and approval on prescribed proforma.10 After communication of BOR approval of DPAC recommended land rates the LAC issues the notices under Section-9 to the AFs for submission of their claims and objections if any and intimates a stipulated date for holding inquiry under announcement of award under section 11.

107. As a matter of practice the DPAC only recommends the rates of land in each revenue estate, while the rates for other assets including trees, crops and buildings/structures are got assessed through the respective government departments in close liaison with EA by the LAC on replacement cost basis before announcement of award under section-11. During inquiry

7 Previously Valuation Tables were prepared for urban lands and now such tables are being maintained for agricultural lands since 2010-2011. 8 The Market rate proposed by the field staff is based on the field survey and information collected from the local people that lack substantial documentary proof of sales at such market rate. Although this parameter is also considered by DPAC during estimation of land prices, however, lack of documentary evidence makes it less reliable. 9 Circular no. 1819-2008/1020-S.IV dated 25-11-2008 “Guidelines for District Price Assessment Committee (DPAC)”. The Performa contains seven columns i.e., composition/classification of land being acquired; location of land and its surroundings including distance from main road; rate of valuation of the same land notified in the valuation table(in case of urban land); average sale price of similar land in the locality during preceding year when notification under Section . 4 of the Act was issued; exact basis/rationale/grounds on which cost of land is estimated; whether parameters laid down under Section 23 and Section 24 of the Act and law interpreted by the Superior Courts was observed and ; estimated cost of Land approved by DPAC. 10 Circular no. 1819-2008/1020-S.IV dated 25-11-2008 “Guidelines for District Price Assessment Committee (DPAC)”. The Performa contains seven columns i.e., composition/classification of land being acquired; location of land and its surroundings including distance from main road; rate of valuation of the same land notified in the valuation table(in case of urban land); average sale price of similar land in the locality during preceding year when notification under Section . 4 of the Act was issued; exact basis/rationale/grounds on which cost of land is estimated; whether parameters laid down under Section 23 and Section 24 of the Act and law interpreted by the Superior Courts was observed and ; estimated cost of Land approved by DPAC.

under Section-11 the AFs are informed about the compensation rates for all lost assets including land and their claims and objections about compensation rates, apportionment of compensation and any other objections raised by the interested persons are heard and responded by the LAC before announcement of award. The LAC also informs about the grievance redress mechanism available to AFs under LAA 1894 in case of disagreement on award.

6.7.1 Land Acquisition Process for Interchanges and Achievement of Main Milestones

108. The process of land acquisition for the M-4 Section- I interchanges was initiated with the finalization of present design of the Interchanges. The process strictly followed the prescribed course of law as discussed in above section. The various sections of LAA-1984 notified for acquisition of land and DPAC held, approval DPAC recommended rates from BOR and announcement of award are summarized in Table 6.6 below:

Table: 6.6: Detail of Notifications, DPAC and Award for Interchanges Section 1 Sr. Name of Notificatio Notification Notification Approval Notices Hearing Village DPAC No Interchange n U/S 4 U/S 5 U/S 6 From BOR under and Award section 9&10 announced

1 Aminpur 59 JB 19-10-2011 30-05-2012 26-06-2013 16-09-2013 12-11-2013 13-11-2013 26-11-2013 15-09-2012 06-02-2013 2 Chiraghabad 334 JB 01-12-2010 17-05-2012 16-06-2012 19-10-2012 03-11-2012 18-12-2013 03-01-2013 18-08-2012 (Addendum) 336 JB 01-12-2010 17-05-2012 16-06-2012 19-10-2012 07-01-2013 18-01-2013 18-01-2013 15-09-2012 (Addendum) 3 Sir Mehdi Shah 303 JB 01-12-2010 17-05-2012 16-06-2012 29-08-12 20-10-2012 18-01-2013 03-01-2013

109. The publication of Section-4 has been completed for all respective mouzas of three interchanges on dates reflected in table above. DPAC after due consideration of laid parameters has recommended the estimated land cost for each village which was deposited in the treasury by NHA for further processing of the LA process. The notification u/s 5, 6 were published and hearing under Section 9 and 10 was provided on the dates reflected in table 1 above and after due hearing of parties the award for all the three interchanges have been announced and compensation payment is in process. However, for interchange 1 due to shifting of one loop of interchange at opposite side of existing Aminpur Road Sections 4 was re-announced for the land subject to acquisition due to shifting of the loop and subsequently the DPAC was held on 06-02-2013 and the notification u/s 5 for interchange-1 (Aminpur Interchanges) is published on 20-06-2013. Notice for submission of objections under Section-5 A of LAA were issued to interested parties on 08-07-2013, and after lapse of stipulated time i.e 30 days, the draft notification under section 6 is placed before the commissioner for his approval, signature and publication in official Gazette. Meanwhile the request for seeking approval of DPAC recommended rates is sent to DCO on August 15, 2013. The awards have been announced on 26-11-2013 after publication of Notification under Section-6 and approval of DPAC recommended rates by BOR.

110. Review of land acquisition process, it is observed that the laid procedures are followed by local revenue authorities and the DPAC during assessment of land prices submitted for BOR’s review and ultimate approval. The DPAC has recommended land prices only based on

fair market value of land while other applicable compensations for structure, tree and crop losses are determined by the relevant government institutions including Buildings Department, Ayub Research Institute, Horticulture and Forest Department Faisalabad and Agriculture department. All such applicable compensations along with 15% compulsory land acquisition surcharge will be included in compensation award by LAC as compensation package for losses accrued to the land owners while transaction cost/ fee or depreciation charges are not deducted from the AFs. Over and above, business/livelihood loss restoration/transitional support and vulnerability allowances will be provided in the award as per entitlement matrix in the Land Acquisition and Resettlement Plan in accordance with ADB policy and agreed Land Acquisition and Resettlement Frame work ensuring that the compensation is on replacement cost basis.

SECTION 7

ENTITLEMENTS, ASSISTANCE AND BENEFITS

7.1 General

111. This section defines affected persons’ entitlements and eligibility, and describes all resettlement assistance measures in terms of an entitlement matrix; identify and document the households who will be eligible for transitional livelihood support if compensation payments for land are delayed for six months; specifies all assistance to vulnerable groups, including women, and other special groups; and outlines opportunities for s to derive appropriate development benefits from the project.

7.2 Compensation Eligibility

112. APs are identified as persons whose land, structures/assets and livelihood are directly affected by the project due to construction of three interchanges on M4-Section-1 The eligible APs for compensation or at least rehabilitation provisions under the Project are:

 All land owning APs losing land or non-land assets, i.e., crops and trees whether covered by legal title or traditional land rights;  APs losing the use of structures and utilities, including titled and non-titled owners, registered, unregistered, tenants and leaseholders plus encroachers and squatters.  APs losing business, income and salaries of workers or a person or business suffering temporary effects, such as disturbance to land, crops and business operations both permanently and also temporarily during construction.  Loss of communal property, lands, and public infrastructure.  Vulnerable affected persons identified through the impact assessment.  In the event of relocation, all entitled APs will receive transitional and other support to re-establish shelter and livelihoods.  Compensation eligibility is attached with the cut–off date that has been established as December 01, 2010 for interchange-2 and 3 while for interchange-1 is January 19, 2011, which is the date for publication of notification under Section-4 of LAA 1894.

7.3 Compensation Entitlements

113. Entitlement provisions for APs losing land, structures, assets, income; and entitled for rehabilitation subsidies, will include land losses, residential and commercial structures losses, crops and trees losses, a relocation subsidy, and a business losses allowance; based on tax declarations and / or lump sums, in case of non–availability of such documentation, in accordance with the inflation adjusted Official Poverty Line (OPL). Agricultural land impacts of titleholders will be compensated at replacement cost, based on compensation calculated under the law (BOR approved land compensation plus a 15% compulsory land acquisition surcharge and free of taxes, registration, and transfer costs) and additional compensation/assistance identified by the valuation firm following review of LAA valuation process. The land based assets including structures and trees will be compensated at full replacement costs while the compensation for the standing crops (perennial and seasonal) will be provided on average net income /unit area. In addition relocation assistance and transitional/income restoration support based on the social impact assessment will apply. The compensation entitlements according to the extent of impacts are defined as follows.

7.3.1 Owners of Land

114. The owners of agricultural land will be paid land compensation on replacement cost basis including compensation calculated under LAA/BOR including the compensation rates recommended by the DPAC and approved by Board of Revenue for affected villages with 15% compulsory land acquisition surcharge (CLAS) per provisions of LAA, free of taxes, registration and transfer costs; with and additional compensation/assistance as per identified gap between Replacement cost and BOR valuation. The BOR compensation will be paid as per provisions of LAA 1894 by the land acquisition collector while the additional compensation/assistance will be paid by the project authorities.

7.3.2 Owners of Tube wells/Shops

115. The owners of the business structures with impacts are entitled for the following compensation.

 Full compensation for the total covered area of the affected structure according to its construction type at replacement cost basis.  Paid in lump sum, Business/Transitional Allowance during the transition period equal to 06 months of inflation adjusted OPL (1942.66 X 7.2X 6= 84000) for shops and for 03 months for tube wells.  One time Transportation/ Shifting Allowance @ Rs. 10,000.0 for tube wells and shops on lump sum basis. These rates are based on the discussions during public consultation with the affectees in the project area.  Additional allowance 03 month of inflation adjusted OPL in case of vulnerable DP (1942.66 X 7.2 X 3= 42000) to provide them additional economic relief.

7.3.3 Owners Of Houses/Residential Structures

116. All the structure owners including one house hold losing its residential structures and one losing Dera/farm yard are the land owners. The owners of the residential houses with impacts are entitled for the following compensation in addition to land cost.

 In case the structure can be built on the remaining space of the affected house, full compensation for the total covered area of the house at replacement cost basis.  Livelihood Allowance equal to 03 months of inflation adjusted OPL (1942.66 X 7.2 X 3= 42000) to cover livelihood loss during construction of house.  Additional allowance 3 month of inflation adjusted OPL in case of vulnerable DP (1942.66 X 7.2 X 3= 42000).

7.3.4 Income Restoration and Rehabilitation Assistance for Loss of Employment

117. The following constitutes the income restoration and rehabilitation assistance for the APs losing their employment due to this project:

(a) Loss of Source of Income: All APs including in business category whose livelihoods are affected will be supported for their income losses equal to 06 months of inflation adjusted OPL for permanent loss of income and for 03 months if income loss is temporary in addition to the compensation for land and

structure losses. These include one shop owner at Aminpur interchange and one land owner facing loss of his tube well at Sir Mehdi Shah Interchange. In case of vulnerability, APs have been paid three month additional allowance of inflation adjusted OPL (1942.66 X 7.2X 3= 42000) (b) Project–related Employment: (for unskilled and semi–skilled tasks during construction): the vulnerable groups will be given priority for project–related employment opportunities. The compliance to this effect will be regularly reported in the Internal Monitoring Reports.

7.3.5 Relocation Assistance for Rehabilitation

118. The interchanges are located away from the settlements in agricultural land and will not impact built-up areas. Only few structures constructed on agricultural land will be affected. The APs were consulted during public consultation about their relocation strategies. They were of the view that they have land in the nearby vicinity and they will build their lost structures at their own within the financial support provided by the NHA for their lost structures. This process will take a considerable time in constructing the structures at new places. During this period they will need livelihood support. As a result of discussions, the following compensation has been provided as relocation and rehabilitation assistance.

 Rental assistance for 06 months @ Rs. 7,000/- per month will be paid to AFs affected by loss of residential structures to facilitate them for hiring the house during construction period.  One time paid Shifting Allowance @. 15,000/- on lump sum basis for household and Rs. 10000 for Tube wells& shops as determined on the basis of discussions during the public consultation sessions.  The owners of the shops and Tube wells will be paid transitional allowance equal to 6 months and 03 months respectively of inflation adjusted OPL.  Rs. 40,000/= for getting electricity connection at new premises

7.3.6 Crop Losses to Affected Agricultural Land Within the Row

119. The owner of land or cultivators (Leaseholder) will be paid crop compensation in cash at the full market rate for one year’s agricultural income (both Rabi and Kharif harvests). In case of leaseholder the amount of compensation will be divided between the owner and leaseholder according to the lease agreement.

7.3.7 Trees

120. Fruit and non-fruit trees will need removal from the RoW acquired for interchanges of Section-1. Fruit trees are compensated based on age category (a. 1-2 year; b. 2-5; c. 5 – 12 years & d. Over 12+). Productive trees are valued at gross market value of 1 year income for the number of years needed to grow a new tree with the productive potential of the lost tree. While non-fruit trees are valued on the girth of trunk at current market rates. For valuation of wood and Fruit trees services of Ayub Research Institute, Forest and Horticultural Departments were solicited. The Ayub research institutes provided the unit rates in June, 2012 which are based on current replacement value.

7.3.8 Assistance for Vulnerable People

121. Vulnerable people (APs below the poverty line) will be supported by a one–time paid allowance in cash equal to 03 months of inflation adjusted OPL, in addition to other admissible allowances and priority in employment in project–related jobs such as semi-skilled and un-skilled labourers.

7.3.9 Entitlement Matrix

122. Based on the above discussed eligibility criteria and compensation entitlements and keeping in view the nature of losses and implementation issues of the proposed project, an Entitlement Matrix (EM) has been prepared as provided in Table 7.1.

Table 7.1: Entitlement Matrix Type of Definition of Application Compensation Entitlements Loss AFs/APs Agricultural land, All land losses Owner (Legal/  In addition to the market rate calculated including irrespective of legalizable) under LAA/BOR market rate + 15% cultivable land impact severity compulsory acquisition surcharge, cash and compensation at full replacement cost uncultivable (RC11) including fair market value plus all wasteland transaction costs, applicable fees and taxes and any other payment applicable 12  If BoR compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation to support to affected.  A price differential of Rs. 2.926 million (@ 10% of BOR cost of affected land) will be paid to all eligible APs. Tenants/ sharecropper  Cash compensation equal to market value of lost harvest to be shared with landowner based on the sharecropping contract. Residential/ Owner  In addition to the market rate calculated commercial land (legal/legalizable) under LAA/BOR market rate + 15% compulsory acquisition surcharge, cash compensation at full replacement cost (RC13) including fair market value plus all transaction costs, applicable fees and taxes and any other payment applicable  If BoR compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation to support to affected livelihoods  A price differential of Rs. 2.926 million (@ 10% of BOR cost of affected land) will be paid to all eligible APs. Residential Owner of the Structure  Cash compensation at full replacement cost and for affected structures and other fixed commercial assets, free of salvageable materials, structures depreciation and transaction cost and also transportation cost. Fees and taxes (if

11 Refer to IR safeguards as in SR2 para 10 of SPS 2009. 12 Board of Revenue, provincial agency with a mandate to approve compensation rate/amount. 13 Refer to IR safeguards as in SR2 para 10 of SPS 2009.

Type of Definition of Application Compensation Entitlements Loss AFs/APs applicable) will be waived.  Rental assistance for a period of six months for residential structure owners.  Rs. 40,000/= for getting electricity connection at new premises. Cattle yards/ farm Cash compensation at full replacement cost for deras affected structures and other fixed assets, free of salvageable materials, depreciation and transaction cost. Fees and taxes (if applicable) will be waived. Transitional Businesses AFs facing permanent Cash compensation during the interruption Allowance or temporary business period 06 months for shop loss and 03 months loss. for temporary tube well loss, as per income of the AF, supported by tax payments records or in the absence of such documents, equal to inflation adjusted OPL (1942.66 X 7.2 X 3= 42000) as transitional allowance in case of shops and tube wells. Crops Affected crops Cultivator of crop Crop compensation in cash at the current market rate for one year’s agricultural income (both Rabi and Kharif harvests). Trees All affected trees Owners  Fruit trees: .Fruit trees are compensated based on age category (a. 1-2 year; b. 2-5; c. 5 – 12 years & d. Over 12+). Compensation is assessed by Ayub Research Institute, Forest and Horticultural Departments.  Timber trees: trees grown and/or used for timber. The compensation is to reflect the market value of tree’s wood content, based on the girth of trunk at current market rates as provided by the Forest Department. Transportation/ APs to be relocated-  One time paid in lump sum, an amount of Rs. Relocation Owners of residential 15000/- in case of household structures, and Assistance and commercial/ Rs. 10000 in case of tube wells & shop as business structures transport allowance to shift the materials of affected structures. Vulnerable DP All APs/ APs below  Additional Cash allowance equivalent to 03 livelihood the OPL. months of inflation adjusted OPL. support APs  Priority in project related employment, ensured through bidding document. Unidentified Unanticipated All APs Dealt with as appropriate during sub-project Losses Impacts implementation according to the ADB Policy and updated LARF of NTCHIP.

SECTION 8

RELOCATION, REHABILITATION AND INCOME RESTORATION

8.1 General

123. This section describes options for relocating housing and other structures, including replacement cash compensation, and/or self-relocation; outlines measures to assist affected persons for establishing at new sites; describes income restoration programs, including multiple options for restoring all types of livelihoods and describes special measures to support vulnerable groups and women.

8.2 Relocation of APS

124. The alignment of the interchanges passes through agricultural land away from nearby settlements and has negligible impact on the residential and commercial structures requiring relocation of AFs from project sites. However, the structures located on the acquired land including o1 residential structure, 01 shop, 01 cattle yard/farm dera/ and 01 tube well will be affected to an extent of 100% and will be relocated/shifted due to project activity. The relocation/shifting options were discussed in detail with the owner of the affected houses and other structures during consultation process. The owners of these structures are also affected under land owner category and they confirmed that they have sufficient land available to reconstruct these structures in leftover land in their name. They will rebuild their structure at their own as per their convenience in the same vicinity available to them to re–establish their business. In view of this limitation, the following relocation strategy has been adopted. Estimated provision of Rs.1.140 Million has been made in the budget for the relocation of these structures.

 For affected houses, full compensation for the total covered area of the structure at replacement cost basis has been provided by the NHA. Further, rental assistance (as transitional support) for 06 months @ Rs. 7,000/- per month has been provided to facilitate them for hiring the residences during construction period of their houses. The owners will be given 01 month advance notice for vacation of affected structure at the time of payment of compensation amount. The details of compensation payments for each type of construction along with allowances have been provided in Annex-IX.  The owners of the commercial structures have been compensated for the total structure loss at current market prices. In addition, they will be paid business/transitional allowance equal to 06 months of inflation adjusted OPL. The owners will be given 01 month advance notice for vacation of affected structure at the time of payment of compensation amount.  The owners of the tube wells have been compensated for the total structure loss at current market prices. In addition, they will be paid business/transitional allowance equal to 03 months of inflation adjusted OPL. The owners will be given 01 month advance notice for relocation of affected structure at the time of payment of compensation amount.

125. Table 8.1 shows the interchange wise impact summary and the allocated budget for relocation.

Table 8.1: Relocation Budget for the Affected Structures Sr. Affected No of Total Cost Interchange Village No Structures Structures Farm Yard 01 745,627 Interchange-1 1 59 JB Boundary (Aminpur) 01 24,969 Wall Shop 01 113,662 Interchange-2 Boundary 2 336 JB 01 86,500 (Chiraghabad) Wall Interchange-3 3 303 JB House 01 170,107 (Sir Mehdi Shah) Total 05 1,140,865 (1.140 Million)

8.3 Rehabilitation of AFs/APs

126. Entitlement provisions for the APs/ APs losing land, houses; and income losses and rehabilitation subsidies include provisions for land losses, house and buildings losses, Tube wells losses, trees losses, a relocation subsidy, and a business losses allowance based on their average income as per census survey and / or lump sums. Each category of affectees is described in more detail as follows :

127. There are 144 land owners and 10 leaseholders losing part of their land due to construction of interchanges of Section I of M-4 Motorway. The land owners are entitled to cash compensation for the loss of their land, acquired by the NHA while the leaseholders will be entitled for crop compensation according to their leasing agreement. The land has been acquired under the provisions of LAA, 1894. NHA is responsible for disbursing Compensation Calculated under Law (CCL) and additional compensation/assistance as per identified gap between CCL and Replacement Cost, before taking possession of the land. . The allocated budget for the compensation of lost land of the affected landowners at replacement cost is Rs 48.806 million(Rs. 45.88 million as CCL and Rs.2.926 million as additional compensation/assistance over and above CCL). However, out of these 144 only 22 land owners are engaged with agriculture as their source of earning while rest are engaged in other professions like business, government and private service etc and have no dependency on the agricultural land. The land owner families engaged in agriculture has partial land loss and had sufficient land available to continue their agricultural activity without any major impact on their income. Besides 09 leaseholders are facing the partial loss of leased land due to land acquisition. To compensate the losses of landowners engaged in agriculture and the leaseholder, one year crop compensation based on one standard crop at gross income and second crop at net income is provided as per entitlement provisions. Other land based assets including trees and irrigation infrastructure like tube wells are compensated at replacement cost basis to enable the landowners to re-establish such assets.

128. As the land loss is partial and severing of acquired land may disrupt the existing facilities and require restoration and rehabilitation of leftover land to make it cultivable in a proper manner. To facilitate the land owners to restore leftover land and make it cultivable in a proper manner an additional allowance @ 10% of land cost approved by BOR is provided across the board to all land owners.

8.4 APs Income Restoration

129. The project envisages the construction of Section 1 Interchanges of M-4 Motorway by acquiring Row for loops carriageways only. All livelihood and income restoration activities will be implemented as given in the entitlement matrix. The following constitutes the income restoration strategy for this project for APs who suffer livelihood losses.

8.4.1 Livelihood Allowance

130. The project has limited impact on the land holdings which are compensated and taken care off in entitlement provisions. However, it is apprehended that the AFs losing their residential structure may become engaged in reconstruction of their house resulting into interruption in their routine livelihood earning activities. To restore any such loss of income all AFs whose livelihoods are affected will be supported for their income losses @ Rs.14000/- per month for 03 months. In the Sir Mehdi Shah interchange, only one household owner is entitled for livelihood allowance. An amount of Rs.42,000 has been allocated in the resettlement budget for payment as livelihood allowance. The detail of these allowances is provided in Annex-X

8.4.2 Transitional Allowance

131. Due to project execution the AFs in business owner category may lose their business on permanent or temporary basis. In addition to compensation for their lost assets a transitional allowance based on inflation adjusted OPL is provided for a period of 6 months (if loss is permanent) or 3 months (if loss is temporary) in entitlement provisions. Such identified AFs are only two in number one facing permanent business loss and other temporary loss due to loss of their structure/shops. This will provide them sufficient time for business adjustment at new location. An amount of Rs.126,000 has been provided in the resettlement budget calculated on the bases of inflation adjusted OPL @ Rs. 14000/- per month. The detail of these allowances is provided in Annex-IX

Sr. No Interchange Structure Compensation in Rs. Aminpur 14000 1 Shop for 6 84,000 0.084 Interchange months Sir Mehdi 14000 2 Shah Tube well for 3 42,000 0.042 Interchange months Total 126,000 0.126

8.4.3 Project–Related Employment: (for unskilled and semi–skilled tasks during construction)

132. Besides above measures vulnerable APs and those considered as under severe impact will be given priority for project–related employment opportunities as drivers, clearing and digging work, and if possible, as clerks or basic administration support staff.

SECTION 9

RESETTLEMENT BUDGET AND FINANCING PLAN

9.0 General

133. This section provides the indicative compensation cost estimates for land acquisition, building structures and rehabilitation of the affectees. Efforts were made to work out realistic cost estimates/values that are applicable for fair compensation to the affectees on replacement cost basis for all the three interchanges (Aminpur, Chiraghabad and Sir Mehdi Shah). For this reason, concerned government departments building, forest, revenue and agriculture were consulted and market surveys were carried out in order to evaluate and apply unit rates based on the ground realities. To obtain rates from concerned governments’ departments’ letter were written to them with a request to provide fresh market rates for the commodities. This exercise was done in May-June, 2012. Land cost has been assessed on the each village located ROW. After obtaining these rates, LARP report is updated by incorporating these fresh market prevailing rates.

9.1 Components of the Cost Estimates

134. All the land to be acquired and land based assets/structures falling in the active right of way have been identified and listed. Any house structures, building partly being affected will be compensated accordingly as per entitlement matrix. In case, the affected part of the building structure is substantial and becomes of no use to the owner, would be compensated fully. In addition to this, resettlement and rehabilitation costs for the affectees and costs of private, community assets have been estimated.

9.2 Compensation Costs (CC)

135. Compensation costs (CC) includes the cost of land, building structure/house and commercial structure, government building structures, forests and fruit trees, crops, transitional period assistance and shifting charges for the affectees falling within the ROW.

136. Quantification of all these items has been made based on the data collected through physical measurements conducted in the field. These building structures have been categorized based on construction material used. Quantities and costs have been developed in consultation with the relevant department.

9.2.1 Land Acquisition Costs

137. According to the valuation done by the DPAC, total Compensation calculated under law (LAA/BOR) for land (57.62 acre) to be acquired in all three interchanges (Aminpur, Chiraghabad and Sir Mehdi Shah) is Rs. 45.88million for all the affected villages. Unit rates recommended by District Price Assessment Committees of Toba Tek Sing and Faisalabad District for 303/JB (Sir Mehdi Shah) and 334/JB and 336 JB (Chiraghabad) and 59 JB under interchange-i had been approved by BOR, and the compensation award is announced by the LAC accordingly. APs wise summary of land compensation is given as Annex XI. Interchange wise summary of the land cost to be paid as Compensation Calculated under law (LAA/BOR) according to the land category is given below in Table 9.1.Further an additional amount Rs, 2.926 million(calculated at the rate 10% of the land compensation approved under the Law.) is provided in the budget as provisional sum for payment of additional or supplementary compensation or livelihood

assistance to meet the Replacement Cost criterion upon findings of land valuation study being done by an independent valuation firm

Table 9.1: Summary of Affected Land and Costs

Affected Sr. Land Land Land Cost 15 % Total Cost No. Interchanges Village Category (Acre) (Rs.) CLAS (Rs.) A1 0.02 225,000 33750 258,750 A2 000 000 000 000

B1 0.13 1,320,000 198,000 1,518,000 1

59 JB B2 0.42 2,010,000 301,500 2,311,500

(Aminpur) C1 1.41 2,042,813 306,422 2,349,235 Interchange 1 C2 7.80 8,854,653 1,328,198 10,182,851 A 2.89 2,893,750 434,062 3,327,812

334 334 JB B 6.8 3,399,999 510,000 3,909,999 2 A 2.24 1,678,124 251,719 1,929,843 Interchange 2 (Chiraghabad) 336 336 JB B 4.21 1,684,999 252,750 1,937,749

Shah) A 1.99 1,993,962 299,094 2,293,056 303 303 JB

Interchange 3 (Sir Mehdi B 29.88 13,798,044 2,069,707 15,867,751 Total 57.79 39,901,344 5,985,202 45,886,546

138. Replacement cost based on the method required under ADB’s IR Policy and SPS for Replacement Cost. The tables (A, B and C) below provide a comparison of the two valuation methodologies; LAA vs. RC, identify discrepancies in valuation basis/factors and price differential between BOR price and RC:

A. National Methodology – LAA/BOR Methodology

Factors considered in valuation Remarks LAA/BOR Methodology

LAA/BOR Methodology to c. Average sum of registered land c. Compensation is only for affected determine (fair/average) prices recorded in the year before assets. market value of land announcement of section 4, i.e. d. Factors like transitional and 2009-10 restoration costs, and income d. Compulsory acquisition surcharge restoration and rehabilitation aspects or a solatium of 15% over and not considered in the law above land compensation e.

B. Replacement Cost Methodology

RC Methodology Factors considered in valuation Remarks

f. Fair market value, b. Fair market value, costs of land Rate of compensation be g. Transection costs, transactions and rehabilitation and calculated at full h. Interest accrued, resettlement aspects considered replacement costs. i. Transitional and restoration costs, including the allowances to achieve and RC j. Other applicable payments, e.g. allowances to support livelihood restoration and vulnerability aspects of the poor APs.

A. Price Differential

Rate/amount of Compensation Interchanges Amount Price Differential Amount Awarded by BOR under RC Aminpur: Village 59 JB: 16.620 There is no price differential between awarded and replacement cost amount at Interchange-I

Chiraghabad: Village 334 JB: Rs. 7.23 million, & Rs. 7.96 million Rs. 0.73 million Village 336 JB: Rs. 3.862 million Rs. 4.25 million Rs. 0.388 million

Sir Mehdi Village 303 JB: Rs. 18.16 million Rs. 19..97 Rs. 1.81 million Shah: million Total differential ~ Rs. 2.926

9.2.2 Cost of Affected Structures

139. While during construction of 3 interchanges of Section – I of the M-4 Motorway, total 05 structures including 01 house, 01 farm yard, 01 shop and 02 boundary walls of different buildings will be affected. Depending on type of construction the estimated compensation cost on replacement value is worked out as Rs.1,140,865 (1.140 Million). APs of these affected structures would also be allowed to take their salvage material. Moreover, no depreciation cost was considered while estimating structure prices. Interchange wise detailed cost estimation of structures is attached as Annex-IX.

Table 9.2: Summary of Affected Structure Costs Sr. Affected No of Total Cost Interchange Village No Structures Structures

Farm Yard 01 745,627 Interchange-1 1 59 JB Boundary (Aminpur) 01 24,969 Wall Shop 01 113,662 Interchange-2 Boundary 2 336 JB 01 86,500 (Chiraghabad) Wall Interchange-3 3 303 JB House 01 170,107 (Sir Mehdi Shah) 1,140,865 Total 05 (1.140 Million)

9.2.3 Tree Losses

140. Total 58.18 acres of agriculture land will be acquired for the construction of interchanges on Section-1 of proposed Motorway. On private land there are 329 wood trees and 89 fruit trees. Table 9.3 shows the interchange wise number and cost of affected non-fruit and fruit trees. The total cost is worked out to be Rs.1.261 million. The owner of land and tree are same. Cost for fruit trees is compiled on the basis of rate provided by Director Horticulture; Ayub Agriculture Research Farm Faisalabad.While non-fruit trees are valued on the girth of trunk at current market rates. Detailed cost estimation of the trees on the basis of their girth sizes and fruit trees is attached as Annex XIIThe compensation will be paid to the owner of land in which tree is located.

Table 9.3: Summary of Affected Non Fruit & Fruit Trees No of No of Sr. Affected Affected Fruit Interchange Village Total Cost (Rs.) No Non-fruit Trees Trees Interchange-1 1 59 JB 62 02 189,823 (Aminpur) Interchange-2 334 JB 24,660 2 103 02 (Chiraghabad) 336 JB 166,612 Interchange-3 (Sir 3 303 JB 164 85 880,178 Mehdi Shah) 1,261,273 Total 329 89 (Rs.1.261 million)

9.2.4 Crops Compensation

141. Crop compensation is provided to make compensation for the affected cropped area on the basis of one year crop loss (for two crops) at different rates according to the prime cropping pattern of the area. A sum of Rs.3.784 million is being provided to make compensation for 01 year crop loss on rotation basis. Detailed AP-wise list of crop compensation is attached as Annex XIII.

Table 9.4: Summary of Crop Compensation for Affected Persons Affected 1st Crop 2nd Crop Sr. Cropped Total Cost Interchange Village Compensation Compensation No Area (Rs.) (Rs.) (Rs.) (Acres) Interchange-1 1 59 JB 9 404,176 175,445 579,621 (Aminpur) Interchange-2 334 JB 9.63 459,550 204,664 664,214 2 (Chiraghabad) 336 JB 6.45 418,675 98,016 516,691 Interchange-3 3 303 JB 29 1,524,850 498,977 2,023,827 (Sir Mehdi Shah) 3,784,353 Total 54.08* 2,807,251 977,102 (Rs.3.784) * 3.38 Acres include empty/fallow land

9.2.5 Asset Losses

142. The project will impact 03 privately owned assets including 01 tube wells, and 02 hand pumps. The tube wells are used for irrigation purposes whereas the hand pumps are located within the affected house for meeting the domestic water needs of the families. The cost of these affected assets is estimated to be Rs. 96,421 as shown in Table 9.5. Detail estimation of these affected assets is attached as Annex XVI.

Table 9.5: Cost of Affected Assets

Sr. No. Hand No. of Tube Interchange Village Total Cost (Rs.) No. pumps well 00 1 Aminpur 59/JB 01 7,600 01 2 Sir Mehdi Shah 303/JB 01 88,821 Total 02 01 96,421

9.2.6 Livelihood Allowance for the Affected Households

143. There is provision of livelihood allowance for the household families for their support during the transition period. There is only 01 household structure affected. The owner of this house is entitled for livelihood allowance. The livelihood allowance is given to the affected household owner for the transition period of 3 months. The total budget provision for the livelihood restoration allowance is Rs.42,000 (0.042 Million).

9.2.7 Business/Transition Allowance

144. The affected families by commercial structures will be entitled for cash compensation of their businesses losses during the period of interruption. The owner of shop at Aminpur Interchange will be entitled for the business loss for the transition period of 6 months. However, owner of Tube wells are entitled for business loss during the transition period of 03 months. The total amount of cash compensation for Rs.126,000.0 (0.126 Million) is estimated under this head.

9.2.8 House Rent Allowance

145. There is a provision of house rent allowance for the affected houses for their support during the transition period (6 months). There is only 01 residential structure will be entitled for house rent allowance. The total budget provision for the house rent allowance is Rs. 42,000 (0.042 million) @ Rs. 7000/ month for each.

9.2.9 Transportation/Shifting Allowance

146. The APs by household, commercial enterprises (shops) will need support for shifting of household goods, commercial stocks and usable raw material by transportation to their new place. Therefore, provision has been made for transportation allowance and estimated to be Rs. 35,000 (0.035 Million).

9.2.10 Electricity Allowance

147. The APs by household, commercial enterprises will need electricity connection at their new place of shifting. Therefore, provision has been made for new electricity connection as allowance for all these APs. The electricity charges will be estimated Rs. 80,000 (0.08 Million) proposed to be paid.

9.2.11 Vulnerable People Allowance

148. After income analysis of the APs, 10 families were identified living below the poverty line. Each vulnerable AP is entitled for vulnerability allowance for a period of three months equal to inflated adjusted OPL. The cost estimation of vulnerability allowance is estimated to be Rs.420,000/given below in Table 9.6.

Table 9.6: Summary of Vulnerability Allowance No. of Sr. Vulnerability Total Vulnerability Interchange Vulnerable No. Allowance Allowance (Rs.) APs Interchange-1 14000 X 03 = 1 06 252,000 (Aminpur) 42000 Interchange-2 14000 X 03 = 2 3 126,000 (Chiraghabad) 42000 Interchange-3 14000 X 03 = 3 1 42,000 (Sir Mehdi Shah) 42000 Total 10 126000 420,000

9.3 Monitoring and Evaluation

149. Monitoring and evaluation of the LARP implementation process is required for fair compensation. A sum of Rs 2.79 million is provided in the budget @ 5% of total cost.

9.4 Administration Cost

150. Administration cost for the implementation of LARP is also required and provided in the budget amounting Rs.0.558 million @ 1% of the total cost.

9.5 Contingencies

151. Contingencies cost @ 10% has been added to cover various unforeseen/ contingencies expenditure for LARP implementation and inflation which amounts to Rs.5.58 million.

9.6 Taxes

152. Federal or provincial taxes are not applicable on any item included in compensatory package.

9.7 LARP Implementation Budget Estimates

153. The summary of total estimated funds for compensation costs, rehabilitation, and mitigation cost amounting to Rs.64.77millionis given in Table 9.7. With these financial provisions, satisfaction of the project affectees is ensured and the grievances would be minimized.

Table 9.7: Summary of Budget Unit/Rate Total Cost Quantity/Tot Sr. # Description Unit US $ al Number (Rs.) (Rs.) Rs. (Million) (Million) A Land Acquisition Cost / Compensation under LAA 1904 1 Aminpur Interchange 9.6 Acre Various 16,620,335 16.620 0.164 Chiraghabad Interchange 16.14 Acre Various 11,105,403 11.105 0.109

Sir Mehdi Shah Interchange 31.88 Acre Various 18,160,807 18.161 0.179

Total 57.62 45,886,545 45.88 0.452

2 Structures Aminpur Interchange 3 No. Various 884,258 0.884 0.0087

Chiraghabad Interchange 1 No. Various 86,500 0.087 0.0008

Sir Mehdi Shah Interchange 1 No. Various 170,107 0.170 0.0017

Total 1,140,865 1.141 0.0112

3 Trees Aminpur Interchange 64 No. Various 189,823 0.190 0.0019

Chiraghabad Interchange 105 No. Various 191,272 0.191 0.0019 Sir Mehdi Shah Interchange 249 No. Various 880,178 0.880 0.0086

Total 1,261,273 1.261 0.0124

4 Crops Aminpur Interchange 9 Acre Various 579,621 0.580 0.0057

Chiraghabad Interchange 16.08 Acre Various 1,180,905 1.181 0.0116

Sir Mehdi Shah Interchange 29 Acre Various 2,023,827 2.024 0.0200

Total 54.08 3,784,353 3.784 0.0373

5 Assets

Aminpur Interchange 1 No. Various 7,600 0.008 0.00007

Sir Mehdi Shah Interchange 2 No. Various 88,821 0.089 0.0009

Total 3 96,421 0.096 0.0009

Sub Total(A) 52,169,457 52.169 0.5164

B Allowances 6 Livelihood Allowance 14000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 1 42,000 0.042 0.0004

Unit/Rate Total Cost Quantity/Tot Sr. # Description Unit US $ al Number (Rs.) (Rs.) Rs. (Million) (Million) 7 Business/Transition Allowance 14000 for 6 Aminpur Interchange 1 No. 84,000 0.084 0.0008 months 14000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 2 126,000 0.126 0.0012

8 House Rent Allowance 7000 for 6 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months Total 42,000 0.042 0.0004

9 Transportation/shifting Allowance Aminpur Interchange 1 Various 10,000 10,000 0.010 0.0001

Sir Mehdi Shah Interchange 2 Various 25,000 25,000 0.025 0.0002

Total 35,000 0.035 0.0003

10 Electricity Allowance Aminpur Interchange 1 Rs. 40,000 40,000 0.040 0.0004

Sir Mehdi Shah Interchange 1 Rs. 40,000 40,000 0.040 0.0004

Total 80,000 0.080 0.0008

11 Vulnerable Allowance 14000 for 3 Aminpur Interchange 06 No. 252,000 0.252 0.002 months 14000 for 3 Chiraghabad Interchange 3 No. 126,000 0.126 0.0012 months 14000 for 3 Sir Mehdi Shah Interchange 1 No. 42,000 0.042 0.0004 months

Total 420000 0.42 0.004

Supplementary Compensation, i.e. gap between compensation and 12 2,926,621 2.926 0.029 ADB’s RC Sub Total (B) 3671621 3.671 0.036 Sub Total (A+B) 55,841,078 55.834 0.553 2.79 C Monitoring and Evaluation @ 5% of the Total Cost 2792053 0.0276

D Administrative Cost @ 1% of the Total Cost 558410 0.558 0.005 E Contingencies @ 10% of the Total Cost 5584107 5.58 0.0554 Grand Total(A+B+C+D+E) 64,775,648 64.77 0.641

SECTION 10

INSTITUTIONAL ARRANGEMENTS

10.0 Background

154. The land acquisition and resettlement plan preparation and its implementation require a proper institutional arrangement to be placed in the EA at top and bottom levels. . Towards this end a Land Acquisition & Resettlement Framework (LARF) duly approved by the Govt (Ministry of Communications) has been agreed wherein the frame work for institutional requirements including project Land Acquisition and Resettlement Unit (LARU) at headquarters level and the LARU extension at project level under supervision of PMU head (GM Project) is proposed. Following the institutional arrangement proposed in LARF the NHA has put in place proper institutional arrangement since preparation and implementation of LARP for main carriage way (Linear Component)to address the social issues of the project till its completion. L

155. NHA has established an Environment, Afforestation, Land & Social (EALS) Section which is over all responsible for ensuring the safeguard compliance in all ADB funded projects. It is focal unit for land acquisition, environmental management and social assessment. In IFI funded projects its major responsibilities include (i) Conduct of environmental and social impact assessment, (ii) Formulation of land acquisition, resettlement and environmental management plan and (iii) Monitoring, evaluation of LARP and EMP implementation. EALS is located at NHA HQ with staff at the regional offices. However for preparation and implementation of LARP for interchanges of M-4 Section-1 following institutional arrangements are in place.

10.1 Land Acquisition and Resettlement Unit (LARU)

156. The LARU will be responsible for all activities in preparation and implementation of land acquisition & resettlement plans for Faisalabad- Multan Motorway. The unit will have an extension on the project with the name of Project Management Unit (PMU) and will work under the administrative control of GM, M-4 and technical control of GM-EALS.

(1) Supervise and monitor consultant’s work engaged for preparation of LARP. (2) Liaison and coordination with Revenue Department and other govt agencies. (3) Cause to prepare the land acquisition and resettlement plans in accordance with agreed timelines and submit the same to ADB through GM EALS. (4) Submit brief report including proposed alignment of the project to the concerned district revenue departments. (5) Cause to publish the intent for land acquisition under section 4. (6) Arrange participate and document the stakeholders/ community consultations ensuring that the required information are disseminated to all the stakeholders. (7) Cause to obtain land record along with cadastral maps from the revenue department. (8) Attend the meetings of the District Price Assessment Committee, ensuring that the proposed rates are in accordance with the market prices. (10) Ensure that NHA is represented in all the processes carried out by the District Revenue Department required under the LAA -1894. (11) Monitoring and reporting of social issues compliance during the implementation of the project. (12) Disclose the contents of the LARP to all concerned.

(13) Establish complaint and Grievances redress mechanism. (14) Any other tasks related to land acquisition & resettlement.

157. The LARU consist of the following members:

 GM, EALS Unit Leader  Coordinator (Land) Member  DD Environment Member  Resettlement Specialist (NHA) Member  AD (L&S), HQ Coordinator 158. The office order have been notified for the constitution of LARU, Steering Committee, LAU, PRU, IMU and GRC and attached as Annex- VII.

10.1.1 Organization of PMU/LARU

159. NHA has established a Project Management Unit in the field under General Manager M- 4. The unit comprises of engineers and land staff. Although considerable emphasis is paid to the land acquisition and resettlement, it is still considered as an integral activity of the civil works. Henceforth, the land acquisition and resettlement will be considered as a part of the project;

10.1.2 Functions of LARU/PMU

160. The PMU based LARU will perform the following functions for preparation and implementation of LARP;

10.1.3 LARP Preparation

161. The preparation of LARP is outsourced to the consultants through GM P&CA and by GM EALS. The LARU will be responsible to oversee, monitor and coordinate all processes and tasks which are required to be undertaken by the consultants for preparation of LARP as per the ADB Involuntary Land Acquisition & Resettlement Policy. The concerned land & resettlement staff of the LARU will be fully involved and will participate in and document all the processes. The functions of LARU during this stage are but not limited to the following;

1) Collection and preparation of land data & data on project affected persons 2) Preparation & submission of reports to the Revenue Departments, other Govt. agencies and EALS. 3) Coordination with all concerned provincial departments. 4) Arranging and participation in the stakeholder consultations. 5) Preparation of compensation matrix as per LARF. 6) Dissemination of project related information to all concerned. 7) Participation in the meeting of District Price Assessment Committee. 8) Disclosures of LARP. 9) Social mobilization of community 10) Redress of grievances and complaints resolution. 11) Documentation of all activities and Maintenance of record. 12) Coordinate and assist ADB field missions.

a. LARP Implementation Tasks. The tasks are but not limited to the following;

(1) Distribution of relocation notices. (2) Disclosure of compensations and other related information. (3) Disbursement of compensations as per approved LARP. (4) Obtain possession of land. (5) Assistance to APs. (6) Conduct community based consultation. (7) Dissemination of information. (8) Redress of grievances and resolution of complaints. (9) Monitoring of LARP implementation and submission of reports.

b. Organization of LARU / PMU

LARU H.Q.

PMU (Extension of LARU on Project)

Land Project Implementation Grievances Acquisition Resettlement and Monitoring Redress Cell Unit (LAU) Unit (PRU) Unit (IMU) (GRC)

c. Staffing. The sections / cells will be staffed as under:

Sr. Category HQ LAU PRU IMU GRC LARU a. In charge LARU Dir Land/ DD Land 1 - - - - b. Dir/. D.D (L&S) 1 (Project) c. AD (L&S)/ LAO/ LO 1 (H.Q) 2 (Project) Other Staff d. Land Acquisition Collector - 1 - 1 1 e. Patwari - 2 1 2 1 f. Qanoongo - 2 - - - g. Office Assistant 1 1 - 1 1 h. Social Mobilizer - - 4 4 2 i. Resettlement Specialist NHA - - 1* 1* - j. Resettlement Specialist ( SC Staff) - - 1 1 - Total 3 8 10 13 8 Notes:  All above units at the project level will be headed by the P.D with D.D (L&S) and A.D (L&S) of the project as their essential members besides other staffing.  Social mobilizers will be actively involved in the preparation and implementation stages of LARP. * DD Land & Social is placed at PMU / LARU (Project), till the appointment of resettlement specialist by the end of 2009.

10.1.4 Tasks/Terms of Reference

162. The tasks and terms of reference for each section / cell are described below:

a. Land Acquisition Unit:

(1) Prepare brief report on the project alignment for submission to Revenue Department in consultation with design consultant. (2) Prepare gazette notification under Section 4 of land acquisition act for submission to Revenue department. (3) Obtain updated land record along with cadastral maps, find out the area of land to be acquired, and determine the project affected persons. (4) Prepare program for stakeholders’ consultation in coordination with LARP consultants and ensure wide circulation to the affected communities. (5) Prepare leaflets containing, detailed information about the project including compensation matrix for land and disseminate and distribute to all project affected persons through media, public places and community organization. (6) Participate in all stakeholder consultations and allay concerns of the affected persons. (7) Receive complaints and grievances of the people and forward the same to Grievances & Complaint cell for resolution. (8) Accompany the Project Director LA & R Unit for attending meetings of District Price Assessment Committee, ensuring that the rates assessed reflects the current market trends. (9) Coordinate & supervise the work related to land acquisition of LARP consultants. (10) Carry out the processes under various sections of the land acquisition act leading to award. (11) Announce the award according wide publicity. (12) Submission of progress reports to head of PMU, LARU, GM NEP, and Chairman NHA.

b. Project Resettlement Unit

(1) Supervise the work of LARP consultant’s team deputed for, carrying out the socio economic surveys and impact assessment. (2) Be intimately involved in the LARP consultant’s work of identifying the severely impacted persons, persons affected through loss of livelihood, income loss, squatters and vulnerable groups. (3) Develop, maintain and update the data of project affected persons requiring rehabilitation assistance, livelihood restoration, income support and shifting assistance etc. (4) Work closely with consultants in evolving the entitlement framework for compensation. (5) Carry out consultations and dissemination campaign with regard to compensation procedures and entitlement criteria/ packages. (6) Assist the PD in preparation of budget for resettlement of the affected persons.

(7) Ensure disbursement of compensation to the affected persons as per the entitlement framework and approved LARP. (8) Ensure that adequate time is allowed to the PAPS before affecting shifting/ relocation. (9) Hold consultation meetings with the affected persons and provide counseling and guidance for rehabilitation. (10) Assist the PMU / LARU in disclosure of relevant information to the community and affected persons. (11) Submit progress reports to the GM PMU, LARU and GM NEP. c. Grievances Redress Cell: The cell will act as a focal body for receipt, resolution and communication with APs. It will specifically perform the following tasks;

(1) Inform the affected community of his telephone and location of office for receiving complaints. (2) Receive and record all complaints/ grievances related to fixation/ valuation of land and other assets. (3) Participate in all stakeholders’ consultation and community meeting to find out the concerns, complaints and grievances of the APs. (4) Investigate the nature and scope of grievances/ complaints through field/ site visits establishing the veracity of complaint and prepare detailed report with recommendation for resolution. (5) Liaison and coordination with other sections of LARU and concerned provincial departments for resolution of complaints and grievances. (6) Communicate the actions taken to all concerned. (7) Keep himself abreast with the latest situation of LARP Preparation and implementation. (8) Assist the APs in resolution of their grievances with revenue department. (9) Closely interact with the notables of the villages. (10) Organize village committees and hold meeting with them. d. Implementation and Monitoring Unit: This unit will have primary function of implementation of land acquisition and resettlement plan. It will perform the following tasks, almost similar members working in the other three units of the PMU / LARU (Project):

(1) Disburse compensation to the affected people. (2) Issue notices for taking over possession of land. (3) Obtain possession of land. (4) Hold periodical meeting with the affected persons and provide counseling and guidance for rehabilitation. (5) Assist the skilled and unskilled PAPs in employment on the project with the contractor in coordination with PD. (6) Assist the grievances cell in resolution of complaints and grievances. (7) Assist the PD in disclosure of relevant information to the community and affected persons. (8) Will be responsible for internal monitoring of the LARP preparation and implementation and perform the following tasks; (9) Benchmarks for Monitoring will include;

i. Information campaign and consultation with AP

ii. Status of land acquisition and disbursement of compensation. iii. Disbursement of compensation for affected structures and other assets. iv. Relocation of APs. v. Payment for loss of income. vi. Income restoration activities.

(10) The above information will be collected through the following instruments;

i. Review of census information for all APs. ii. Consultation and informal interviews with APs. iii. In depth case studies. iv. Sample surveys of APs. v. Community public meetings.

(11) Will prepare the monthly reports for submission to GM M-4, GM NEP, GM EALS and ADB.

10.2 Contractors

162. The construction contractor will also nominate one liaison officer to coordinate with the PMU / IMU and other relevant offices on matters relative to possible impacts occurring during project implementation and to coordinate on employment opportunities for the APs in construction works. Its key roles and responsibilities are to collaborate with the PMU / IMU and the implementation consultants in the following activities:

 Verify the loss of infrastructures and other assets of APs due to project implementation and ensure their compensation;  Determine/review the replacement cost for all kinds of loss occurred;  Hold consultation meetings with the affected people; 10.3 Coordination Initiatives

163. The agencies and officers/officials identified above will work in close coordination to obtain effective, smooth and timely AP compensation and LARP implementation. To this purpose an LAC will be directly assigned to the PMU by the Board of Revenue and two coordination/consultation committees will be included at the top and bottom levels of the LAR organization as follows:

a. LAR Steering Committee (LSC). To be established soon after approval of LARP by ADB at provincial level to ensure that all relevant agencies involved in LAR and compensation and rehabilitation are:-

(i) fully informed of this LARP and ADB Policy’s requirements and (ii) Assist NHA in the preparation/ implementation of needed LARPs at Project level by providing district-level offices with the directions needed to ensure effective synergy and task coordination between NHA, LACs and relevant District departments. The LSC will include high-level representatives of each following department:

a) Member (Aided Projects) Chairman Committee b) G.M (EALS), c) G.M (M-4), P.D (M-4), d) G.M (NEP), e) Secretary (Settlement) BOR Punjab, f) Director (L&S), D.D (L&S) (M-4) g) D.D (Environment), h) NHA Resettlement Specialist, i) ADB Resettlement Specialist j) A.D (L&S), H.Q Coordinator

164. The LSC will meet periodically, to ensure that LARU (H.Q) / PMU, the consultants, the LACs and other district agencies work together in the implementation of the LARPs and in the execution of AP consultation. The meetings of the committee will be held in provincial head quarter of NHA. A function of the LSC will be to ensure the timely formation of effective district level LAR Coordination Committees (LCC).

165. LAR Coordination Committee (LCC): This is to be formed in each relevant District to provide a coordinating node for the preparation / implementation of LARPs (surveys execution, assets valuation, AP consultation, and local approval of LARP provisions) and complaints and grievances. The LCC formation will be supported by the LSC and initiated by NHA’s PMU before the beginning of project preparation activities in a specific District. As the LARP is approved by ADB this committee will be formed within a month and its first meeting will be held at PD office Faisalabad and furthermore this committee will held its meeting on every week and it will plan the activities and review the progress of LARP implementation.

10.4 Conclusion

166. The construction, up gradation, rehabilitation and operation of highways adversely impacts on the social lives of the communities in varying degree. All measures must be taken to mitigate and minimize these adverse impacts ensuring that the lives of the affected persons are improved or at least restored to the level prior to the project. This requires a participative and consultative approach to ensure timely dissemination of information to the affected communities, proper valuation of assets, correct evolution of compensation entitlement, expeditious disbursement of compensation redress of grievances/ resolution of complaints and documenting & monitoring of all the processes. The LARU has been organized to achieve this purpose. The LARU staff will require training which must be organized to ensure efficiency.

SECTION 11

IMPLEMENTATION SCHEDULE

11.1 Introduction

167. Implementation of LARP for interchanges consists of compensation to be paid to the APs for affected land, structures and other assets along with rehabilitation and resettlement activities are completed as contemplated. All activities related to the land acquisition and resettlement are planned to ensure that compensation is paid prior to displacement and commencement of civil works for interchanges. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. However, the schedule is subject to modification depending on the progress of the project activities. Though Civil Works contract of the project is already awarded, however the interchanges land will be handed over for construction work, after all compensation and relocation has been completed and rehabilitation measures are in place, as confirmed by EMA. To achieve the implementation objectives with streamlined handing over of land staggered implementation of resettlement provisions for all three interchanges as scheduled below.

11.2 Schedules for LARP Implementation

168. The LARP implementation schedule for Interchanges component includes LARP preparation, disclosure, disbursement of compensation with its internal and external monitoring and reporting with ultimate objective of earliest handing over of land to the Contractor.

11.2.1 LARP Preparation Phase 169. The interchanges LARP is prepared on the basis of final design, census and impact inventory for all three interchanges as well as BOR approved/awarded rates for interchanges ii & iii and is final to this extent, however it will be subject to revision to the extent of interchange-i- only if the BOR approved rates become different than the DPAC recommended rates. If it is so, the revision will be made as an addendum reflecting the changes in budget and AP wise compensation entitlements for interchange-I shall be prepared and processed for ADB’s approval. For LARP preparation and implementation all requisite institutional arrangements including project GRC and affected persons committees are in place and functional. Though the LARP provisions were disclosed to the AFs/APs during census and consultation process as part of LARP perpetration, however, LARP disclosure, information sharing & community consultation process about affected assets, compensation delivery mechanism and grievance redress will be continued till the end of the project.

11.2.2 LARP Implementation and Monitoring Phase 170. After the LARP preparation phase the next stage is its implementation, which includes issues like disclosure of approved LARP, delivery of compensation awarded under Law by EA; payments of all eligible assistance and resettlement allowances; relocation of APs; implementation of income rehabilitation measures; redress of grievances and complaints if any; removal of structures/assets and taking over possession of acquired land and handing it over to contractors free of all encumbrances for construction works. Besides, the internal monitoring and reporting requirement starts immediately with LARP implementation process and continues till end of the LARP implementation is completed in all respects. So, in this phase the LARP monitoring unit will monitor the LARP implementation progress on daily basis and compile monthly internal monitoring reports to be shared with LARU at Head Quarter/EALS. The monthly

internal monitoring reports will be consolidated into quality quarterly internal monitoring reports (QIMR) through resettlement specialist mobilized by the supervision consultants and such QIMRs will be shared with ADB.

171. The external monitoring of the LARP implementation will be the responsibility of independent External Monitoring Agency procured and mobilized as such for the project to submit External Monitoring Reports biannually for implementation of carriageway LARP. He will be assigned as External Monitoring Agency for interchanges LARP as well. The EMA will start his monitoring from start of implementation of LARP after ADB’s approval and incorporate a section on Implementation of interchanges LARP in his forthcoming Monitoring Reports. Besides he will prepare and submit brief validation reports confirming full implementation of LARP provisions for each interchange separately if required so to facilitate EA and ADB to arrive on decision for contractors’ mobilization.

11.3 LARP Implementation Schedule

172. Keeping in view of the land acquisition process for each interchange, its implementation is staggered for timely and effective implementation of LARP provisions for each interchange separately. This will help early payment of full compensation for each interchange and will facilitate taking over the possession of land after making payment and handing over of land free of all encumbrances to the contractor for commencement of civil works.

173. Keeping in view the ongoing land acquisition process the LARP implementation is staggered in two parts. One is for interchange-2 and 3 as land acquisition are on advance stage with land awards already announced for both interchanges. The AFs have been served with notices to submit their claims to receive compensation calculated under law. Hence it is perceived that disbursement of full compensation on replacement cost basis including CCL plus additional compensation/assistance with all entitled resettlement allowances will be achieved in couple of months after LARP approval. The implementation timelines for these two interchanges are proposed accordingly for delivery of compensation, internal and external monitoring reports, taking possession of land free from all encumbrances and handing over of site to contractor for commencement of civil works.

174. While 2nd part is interchange-I for which the LARP is finalized based on the compensation rates recommended by the DPAC with consideration that the same will be approved by BOR and awarded by LAC. The DPAC recommended rates are under process of BOR’s approval and final notification under Section 6 of LAA for land acquisition is forwarded to Commissioner for his approval and issuance for publication in official gazette. The awards are expected to be announced in October, 2013 for the land subject to acquisition after fulfilling all codal requirements. However, to overcome any discrepancy in BOR approved rates and DPAC recommended rates, the LARP to the extent of interchange-i is subject to revision and updating accordingly.

175. A composite implementation schedule for LARP activities in the subproject including various sub tasks and time line matching with civil work schedule is prepared and presented in the form of fig 11.1 and 11.2.

Fig: 11.1: LARP Implementation Schedule for Interchange2 and 3 (Chiraghabad 334/JB, 336 JB and Sir Mehdi Shah)

Progress year/M onth 2012, 2013, 2014 Activity 2010 2012 2013 2014 Ja Fe Ma Ap Ma Ju Dec 2nd Qrater 3rd Qrater 4th Qrater 1st Qrater 2nd Qrater 3rd Qrater 4th Qrater Jul n b r r y n

Land Acquisition and preparation of LARP and redress of grievances

Publication of Section 4

Assessment of M arket value of Land

Redressed of Grievances

Publication of Section 5

Publication of Section 6

Approval of land compensation rates (CCL) from BOR

Preparation of Draft LARP and its disclosure Notices for rendering objections, submission of claims and Announcement of Awards Updation of draft LARP on Replacement cost basis by bridging Land valuation gap between CCL and Replacement Cost

Review and Approval of LARP by ADB

LARP Implementation, M onitoring and Commencement of Civil Works

Disclosure of LARP Transfer of Amount to Project Office for additional Compensation/ assistance and entitled resettlement allowances Full compensation payment (CCL+ Additional Compensation/assistance, with other entitled compensation as per LARP)

Possession of Land and handing over the contractors

Commencement of Civil Works

M o nito ring

Hiring of External M onitoring Agency

M onthly internal monitoring reports

Quarterly external monitoring reports Final external monitoring report validating LARP implementation.

Fig 11.2: LARP Implementation Schedule for Interchange-1 (Aminpur)

Progress year/M onth 2012, 2013, 2014 Activity 2010 2012 2013 2014 Ja Fe Ma Ap Ma Ju Dec 2nd Qrater 3rd Qrater 4th Qrater 1st Qrater 2nd Qrater 3rd Qrater 4th Qrater Jul n b r r y n

Land Acquisition and preparation of LARP and redress of grievances

Publication of Section 4

Assessment of M arket value of Land

Redressed of Grievances

Publication of Section 5

Publication of Section 6

Approval of land compensation rates (CCL) from BOR

Review and Approval of LARP by ADB Updation of approved LARP to the extent of interchange-1 if BORs approved CCL varies with DPAC recommended rates

LARP Implementation, M onitoring and Commencement of Civil Works

Possession of Land and handing over the contractors

Commencement of Civil Works

M o nito ring

Hiring of External M onitoring Agency

M onthly internal monitoring reports

Quarterly external monitoring reports Final external monitoring report validating LARP implementation.

SECTION 12

MONITORING AND REPORTING

12.1 Need for Monitoring and Reporting

176. Monitoring reports will show all documentation relating to all LAR that has already occurred and will demonstrate consistency of LAR activities with the RP and LARF. Furthermore – a timetable for submission of reports has been provided in figures 11.1 and 11.2 with reporting frequency/timing for internal and external monitoring report specified in both figures.

177. Monitoring is a periodic assessment of planned activities providing midway inputs. Monitoring and reporting are critical activities in involuntary resettlement which helps in assessment of implementation progress, rescheduling key actions to meet the objective timelines, early identification of issues, resolve problems faced by the APs and develop solutions immediately to meet resettlement objectives. In other words, monitoring apparatus is crucial mechanism for measuring project performance and fulfilment of the project objectives. Keeping in view the significance of resettlement impacts, the monitoring mechanism for this project will have both internal monitoring (IM) and external monitoring (EM). Internally, the LARP implementation for the subproject will be closely monitored by the EA through the PIU and the Resettlement Specialist (Internal Monitoring Consultants) mobilized through the supervision consultants, while for external monitoring the services of an independent external monitoring agency hired for monitoring of carriage way LARP will be extended for monitoring of interchanges LARP implementation. The IM and EM are required to.

 Establish and maintain procedures to monitor the progress of the implementation of safeguard plans.  Verify their compliance with safeguard measures and their progress toward intended outcomes.  Document and disclose monitoring results and identify necessary corrective and preventive actions in the periodic monitoring reports,  Follow-up on these actions to ensure progress toward the desired outcomes,  Retain qualified and experienced external experts to verify monitoring information for projects with significant impacts and risks,  Submit periodic monitoring reports (monthly, quarterly and annually) on safeguard measures as agreed with the ADB.

12.2 Internal Monitoring

178. One of the main roles of PIU will be to see proper and timely implementation of all activities in LARP with day to day monitoring of implementation progress. Besides, the monitoring process is augmented by mobilization of Resettlement Specialist for M-4 Section-1 who will support the PIU monitoring unit during LARP implementation monitoring process to ensure timely implementation of LARP activities. PIU will collect information from the project site about implementation status of key activities, process and integrate the data in the form of monthly report to assess the progress and results of LARP implementation. And in case of delays or any implementation problem, adjust its work program accordingly. This monitoring and reporting will be a regular activity which is extremely important in order to undertake mid-way corrective steps.

179. Internal Monitoring (IM) indicators will relate to process outputs and results. The monthly IM reports will be consolidated into quarterly internal monitoring reports by the Resettlement Specialist mobilized through Supervision Consultants for sharing with ADB. Specific IM benchmarks will be based on the approved LARP and cover the following:

a. Information campaign and consultation with APs; b. Status of land acquisition and payments on land compensation; c. Compensation for affected structures and other assets; d. Relocation of APs; e. Payments for loss of income and income restoration activities implementation; and f. Ensure the gender mitigation measures are adhered to during the internal monitoring and reporting process.

180. The above gender disaggregated information will be collected by the internal Monitoring Consultant at PIU, which will monitor the day-to-day resettlement activities of the project through the following instruments:

a. Review of census information for all APs. b. Consultation and informal interviews with APs. c. Key informant interviews; and d. Community public meetings.

12.3 Monitoring by External Expert

181. The EA is required to engage qualified and experienced External Monitoring Agency to verify the EA's monitoring information. The EMA recruitment is under process and will be completed in March 2014. The EMA will be hired for 18 months (Approx.). The main objective of this monitoring is to monitor LARP implementation, identify issues and recommend corrective measures. The external monitor will review the IM reports, collect/validate information in the field and determine whether resettlement objectives and goals have been achieved, more importantly whether livelihoods and living standards of APs have been restored/ enhanced and suggest suitable recommendations for improvement. The external monitor will identify the gaps in LARP implementation and advise the EA on safeguard compliance issues. The key tasks during external monitoring will include:

a. Review and verify internal monitoring reports prepared by PIU; b. Review of the socio-economic baseline, census and inventory of losses of pre- affected persons; c. Identification and selection of impact indicators; d. Impact assessment through formal and informal surveys with the affected persons; e. Consultations with APs, officials, community leaders for preparing review report; f. Assessment of resettlement implementation progress, efficiency, effectiveness and sustainability; and g. Review of adherence to the gender mitigation measures during monitoring period.

182. The following will be considered as the basis for indicators in external monitoring and evaluation of the project:

a. Socio-economic conditions of the APs in the post-resettlement period; b. Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc; c. Quality and frequency of consultation and disclosure; d. Changes in housing and income levels; e. Rehabilitation severely affected people, and different vulnerable groups; f. Valuation of property and ability to replace lost assets; g. Disbursement of compensation and other entitlements; h. Level of satisfaction of APs in the post resettlement period; i. Grievance procedures, including recording, reporting, processing and redress of grievances.

183. Based on the external monitor’s report, if significant issues are identified, a corrective action plan (CAP) to take corrective action will be prepared, reviewed and approved by ADB and disclosed to affected persons. However, Internal and external monitoring and reporting will continue until all LAR activities have been completed.

12.4 Reporting Requirements

184. The external expert will be responsible for overall monitoring of the interchanges LARP implementation process and the EA will forward to ADB separate reports by EM confirming the status of disbursement of payments, LARP and CAP implementation on quarterly basis. Final monitoring report will be provided in June 2014 after the LARP is full and CAP, both are fully implemented. Where required, EMA will also provide special monitoring report validating the implementation of LARP in interchanges, if NHA would undertake construction work section by section – interchange by interchange, based on this notice to proceed (NTP) will also be issued accordingly. The monitoring reports will confirm whether resettlement goals have been achieved, more importantly whether livelihoods and living standards have been restored/ enhanced and suggest suitable recommendations for improvement. Additionally, ADB will monitor projects on an ongoing basis until a project completion report is issued. All the resettlement monitoring reports will be disclosed to APs as per procedure followed for disclosure of resettlement plans by the EA.

Appendix 1

Due Diligence Review of Land Acquisition and Corrective Action Plan

Social Due Diligence Report

December 2013

PAK: National Trade Corridor Highway Investment Program

Due Diligence Review of NTCHIP, Tranche 1 Faisalabad–Khanewal Motorway Project (M4), “Interchange” component of section 1

A. Introduction

1. Project background: The National Trade Corridor Highway Investment Program (NTCHIP) of the Government of Pakistan is funded by the Asian Development Bank (ADB) through a Multitranche Financing Facility (MFF). The MFF consists of several tranches, each covering several subprojects. The on-going tranche 1 of the MFF comprises of section 114 of the Faisalabad to Khanewal Motorway (M4) located in the Punjab province of Pakistan. Section 1 of M4 comprises of 2 components: carriageway and interchanges. This DDR covers the interchanges component. In 2009, the National Highway Authority (NHA) - the Executing Agency (EA) for the facility - had prepared the land acquisition and resettlement plan (LARP) for the carriageway component, which is about to be completed. In 2013, once the design of interchanges was finalized, NHA also prepared a draft LARP for the interchanges component.

2. Land acquisition and resettlement impacts: A total of 57.62 acres of land (comprising of 54.77 acres of privately owned and 3.41 acres of government land) has been acquired for the interchanges. The land acquired comprises of 1.27 acres of commercial and 56.92 acres of agricultural land – of which 54 acres are presently cropped. The acquired land is held by 155 families (144 titled land holders and 10 leaseholder families cultivating government land). About 53% of AFs are losing less than 10% of their individual land holdings, while 47% are losing more than 10%.

3. Of the total 155 affected families, only 15 families have been identified as vulnerable. The remaining AFs are engaged in both on-farm and off-farm activities. These include: 72% of AFs engaged in employment and labour sectors, followed by 18% in the business sector. Only 19% of AFs have been recorded as engaged in the agriculture sector, mostly farming. Few farming and non-farming families are also reported as being engaged in multiple occupations with sources of income not entirely dependent on land lost to the project.

4. The draft LARP prepared for interchanges is based on ADB’s Involuntary Resettlement (IR) Policy of 1995 and provides an entitlement matrix containing cash compensation at replacement cost (RC) for lost land and assets - including allowances to support APs in resettlement and rehabilitation activities. However, only 27% of the land owners have been paid land compensation based on the Land Acquisition Act (LAA) of 1894; land acquisition procedures and mechanism of compensation assessment under provincial Board of Revenue (BOR). ADB’s Involuntary Resettlement Policy (IRP) requires that compensation at full replacement cost (RC) is provided to the APs along with resettlement and rehabilitation support and allowances for livelihood restoration. Nevertheless, payment of compensation covered under IR Policy is yet to commence including price differential payable to the APs to comply with the requirement of RC, as in IRP.

B. Due diligence review of tranche 1 (DDR)

5. The purpose of this DDR is to ascertain whether land acquired for interchanges using the LAA 1894 conforms to the ADB’s IR Policy of 1995 and land acquisition and resettlement framework (LARF) of 2007. A critical aspect of this DDR is to examine whether LAA compensation meets the ADB’s requirement of Replacement Cost. Table A of DDR draws a comparison of the two methodologies - LAA vs. RC. Table B provides over price differential, and

14 Section 1 of M4 consists of (a) 58 km long carriageway and (b) 4 interchanges at different locations within 58 km section.

table C provides details about payable price differential to each and every single AP for affected land parcel. Section G makes a set of recommendations/actions to ensure the price differential is paid to the APs and LARP implemented through a corrective action plan (CAP) provided at section H of this DDR. The CAP will be implemented as part of the LARP and will be the subject of ongoing project monitoring.

C. Independent land valuation study

6. Tranche 1 of the MFF was processed based on ADB’s IR Policy of 1995, which requires, among other things, compensation at full replacement cost. As part of overall due diligence of the land acquisition process and to ensure full replacement cost is paid to the APs, an international valuation firm - namely, Colliers International was engaged at the behest of Ministry of Communication (MOC) and NHA in April 2013 to undertake an independent land valuation study of land properties acquired for interchanges. The Colliers team undertook the study with logistical support provided by NHA.

7. The purpose of the land valuation study was to determine how replacement cost should be appraised in Pakistan using international appraisal standards for involuntary resettlement. To ensure compliance with ADB’s IR policy a central part of the study was to determine how the value of land and other assets could be assessed, fixed and paid to the APs in compliance with national laws and ADB’s policy requirements.

D. Scope of valuation study

8. The study undertook valuation of all 115 land properties affected by interchanges. All land properties were physically examined in the field and the BOR methodology of price assessment/fixation fully analyzed side-by-side with best international practices in land valuation.

9. Study limitations: The independent study has been undertaken for the first time ever in Pakistan to determine RC of rural land acquired for the project. There was lack of secondary data or a good reference point on rural land valuation the study could analyze for cross validation. Therefore, the study followed the international valuation standards, RICS and ADB’s IR Policy guidelines on RC, and the study/valuation methodology, therefore, evolved out of a consultation process held with key stakeholders from the government and ADB – such as (i) provincial Boards of Revenue and District Revenue Officials who acquire land for public purpose projects, (ii) Ministry of Communication (MOC), (iii) National Highway Authority (NHA) which is the Project Executing Agency (EA), (iv) Federal Agencies including the National Planning Commission (NPC) and Economic Affairs Division (EAD), (iv) the Central and West Asia Transport and Communications Division, (v) ADB’s corporate compliance department - as well as representatives of affected persons and complainants. All land parcels were visited and on-site discussions/ consultations were held with local people as they gathered around the valuation sites. Table B provides valuation outcome and a comparison of BOR and Colliers prices.

E. Study methodology

10. Data collection and source of information: The necessary investigations have been conducted independently in the field and without influence from any third parties in any way. The information provided in this report has been collected after detailed consultations with relevant stakeholders, including National Highway Authority, the relevant Bureau of Revenue,

District Collectors, affected people and local villagers.

11. It is confirmed that Colliers made relevant enquiries with BOR, NHA, LAR consultants, officials of the district revenue office, Land Acquisition Collector (LAC), and land management staff including local Patwari and girdawars who keep cadastral maps and land records. Colliers reviewed the land awards announced in 2013, the registered land transactions in 2009–2010 for the two interchanges (Chiraghabad and Sir Mehdi Shah), and registered land transactions in 2010–2011 for interchange Aminpur, and held independent discussions with APs and revenue staff. See table B for details on land prices including BOR price and Colliers price as RC).

12. Use of International valuation standards: The study used a rigorous methodology to examine the land acquisition process and fixation of land prices by BOR. The study followed best international practices in land valuation, including the International Valuation Standards (IVS)15, the Professional Standards set by the Royal Institution of Chartered Surveyors (RICS) in the United Kingdom, and ADB’s replacement cost guidelines, which helped in ascertaining whether BOR prices approximate replacement cost or if there BOR price has to be topped up to achieve compliance with replacement cost.

13. Basis of valuation: The land prices fixed under LAA were examined using the following investigation methodology:

 LAA market rate based on registered land transactions;  Physical aspects/ Area: location of affected land parcel, and accessibility;  Land use and quality: quality of land, cultivation pattern, and sources of water;  Assessment of value of agriculture land in open market considered following aspects: land use, cropping patterns, yield, irrigation pattern, location, and topography;  Construction costs of all types of construction material used;  Amenities, distance from the population/nearest town;  Other considerations which may have had a material impact on the prices paid.

14. Valuation Comparators used: Keeping in view the IVS, RICS, ADB’s guidelines about replacement cost, the valuation comparators used in the study included: property description, site (area, dimensions, soil type, aspect, elevation, etc.), location attributes (distance from the nearest town center and surrounding development, access to services and amenities including water supply, public transport, shops, schools, mosques, clinics etc.), any statutory valuations (BOR etc.), date of inspection and valuation, registered owner/occupier, title description, formal or informal easements or encumbrances, land categorization and current use/land category, improvements (type, size and value of structures, features, water supply etc.), valuation considerations (approach to valuation – capitalization or direct comparison etc.), a valuation figure approximating full replacement cost as defined in IR policy – as per the opinion of the study team.

15 http://www.rics.org/Global/International%20Valuation%20Standards.pdf: The IVS, RICS and RC guidelines provide the globally accepted principles and definitions in all types of valuation, valuation processes and reporting disclosures, highest educational and professional standards, and a strict code of ethics undertake and provide impartial advice, analysis and guidance on the valuation of assets.

F. Key findings and recommendations

15. Discrepancies in BOR price compared with RC: The DDR reveals that the compensation value for land and assets based on the LAA/BOR methodology does not truly represent replacement cost. With respect to land acquired for 2 16 of 3 interchanges, documentary evidence using LAA/BOR methodology reveals that the compensation value (Rs. 33.31 million) falls short of RC by about Rs. 5.0 million. In the M4 interchanges valuation study, some divergence in land compensation was found in the prices awarded by BOR. For instance, in Chiraghabad interchange, villages 334 JB and 336 JB were located 500 meters from each other and had the same type of land; however, BOR assigned 33 % higher value to village 334 JB versus village 336 JB but no proper justification could be obtained for this discrepancy in BOR rates. Furthermore, while the date of announcement of section 4 was in 2010–2011, land awards took place with a time lag in 2013, which influenced land valuation in the year 2013.

16. Tables A, B and C below provide more details on valuation methodologies, price differential, and AP-wise payment of differential each and every AP.

Table A: LAA/BOR Vs. RC Methodology LAA/BOR Methodology Factors considered in valuation Remarks LAA/BOR Methodology to f. Average sum of registered land e. Compensation is only for determine (fair/average) prices recorded in the year before affected assets. market value of land announcement of section 4, i.e. f. Factors like transitional and 2009–2010 restoration costs, and income g. Compulsory acquisition surcharge restoration and rehabilitation or a solatium of 15% over and aspects not considered in the above land compensation law Replacement Cost RC Methodology Factors considered in valuation Remarks Rate of compensation be k. Fair market value, transaction c. Fair market value, costs of land calculated at full costs, interest accrued, transactions and rehabilitation replacement costs. transitional & restoration costs, & and resettlement aspects l. Other applicable payments, e.g. considered including the allowances to support livelihood allowances to achieve RC restoration and vulnerability aspects of the poor APs.

16 Chiraghabad interchange (village 334 JB and 336 JB), and Sir Mehdi Shah Interchange (village 303 JB). Land award of Aminpur interchange (village 59 JB) concludes no need of any top up as BOR price already approximates the replacement cost.

Table B Rate/amount of Compensation Interchanges Amount under Price Differential Amount Awarded by BOR RC Aminpur: Village 59 JB: 16.620 There is no price differential between awarded and replacement cost amount at Interchange-I Chiraghabad: Village 334 JB: Rs. 7.23 million, & Rs. 7.96 million Village 336 JB: Rs. 3.862 million Rs. 4.25 million Rs. 0.73 million Rs. 0.388 million

Sir Mehdi Village 303 JB: Rs. 18.16 million Rs. 19..97 Shah: million Rs. 1.81 million

Total differential ~ Rs. 2.926

G. Recommendations

(i) The price differential of about Rs. 2.926 million (RC – BOR price = Price Differential) is to be paid to APs to comply with ADB’s policy requirement of RC. (ii) NHA agreed to pay Rs. 2.926 million as price differential/top up to the BOR price to all 113 APs and have internally secured additional funds to pay this amount to the APs. (iii) NHA has already secured the services of an external monitoring expert to undertake monitoring of the payment process and validate payment of the top up amount to all the APs. (iv) The payment of top up amount will commence after ADB approves the LARP of interchanges. (v) The list of APs eligible to receive top up amount is under preparation by NHA and will be provided in the LARP as an addendum. (vi) The entitlement matrix and LAR budget of LARP has made a provision for the top up amount to be paid to 113 APs (vii) The entitlement matrix also provides allowances to support relocation of APs in and around the project area to the land in their vicinity. Other allowances such as shifting, rent, transition and severity/vulnerability allowance have been provided in the entitlement matrix and will paid to the APs once the LARP is approved. (viii) LARP implementation arrangements are already in place. NHA has a well- functioning field-based LAR unit in the Faisalabad office with outreach to all 4 villages where the interchanges are located and APs live. The LAR unit will make payments to APs following set procedures, as adopted for LARP of the carriageway component. (ix) Prior to startup of any civil works activities in the right of way and acquired land, all the above activities and actions proposed in the CAP below will be fully implemented and validated by external monitoring agency or monitoring agent. (x) The CAP will be the subject of ongoing project monitoring.

H. Corrective Actions for Implementation

Serial Corrective Actions Responsible Timeframe Remarks # agency Land compensation 1 Pay Rs. 2.926 as top up NHA/EALS/LARU/ Before startup This will be compensation to 113 Land Acquisition of construction monitored and APs Collector work. validated by external monitoring agency. 2 Pay Rs. 51.8 million as NHA/EALS/LARU/ December 2013 As above BOR land compensation Land Acquisition to 155 APs Collector 3 Pay 1.14 million as December 2013 As above compensation of affected structures to 5 APs 4 Pay 1.3 million as EALS/LARU December 2013 As above compensation of lost fruit and wood trees to APs. 5 Pay 3.8 million as crop EALS/LARU Dec–Jan 2014 As above compensation to APs 6 Pay Rs. 58.1 million as EALS/LARU Jan 2014 As above asset compensation to 3APs Allowances payable under IR Policy 7 Pay Rs. 0.042 million as NHA/LARU 30 Feb 2014 As above livelihood allowance to 1 AP 8 Pay Rs. 0.13 million as NHA/LARU 30 Feb 2014 As above business/transition allowance to 1 AP 9 Pay Rs. 0.042 million as NHA/LARU 30 Feb 2014 As above rent to I AP 10 Pay Rs. 0.035 million as NHA/LARU 30 Feb 2014 As above shifting allowance to 2 APs 11 Pay Rs. 0.08 million to 2 NHA/LARU 30 Feb 2014 As above APs as electricity allowance 12 Pay Rs. 0.63 million as NHA/LARU 30 Feb 2014 As above vulnerability allowance to 15 Aps Other key actions 13 All above actions to be NHA/EALSLARU/ March–April As above implemented before LAC 2014 startup of civil works 14 Extend contract of NHA/EALS/ Jan 2014 external monitor and GM/PD M4 mobilize him