Resettlement Planning Document Resettlement Plan for Kavre Valley Stage: Draft for Consultation Project Number: 36188 MAY 2010 Nepal: Secondary Towns Integrated Urban Environmental Improvement Project Prepared by Department of Urban Development and Building Construction, Ministry of Physical Planning and Works, Government of Nepal 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. TABLE OF CONTENTS GLOSSARY OF TERMS EXECUTIVE SUMMARY 1 I. PROJECT DESCRIPTION 1 A. Overview 1 B. Subproject Description 1 C. Resettlement Category 3 D. RP Preparation 3 E. Summary of Key Impacts 4 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 5 A. Land Acquisition Requirement 5 III. SOCIOECONOMIC INFORMATION/PROFILE 6 IV. INFORMATION DISSEMINATION, CONSULTATION AND PARTICIPATION 12 A. Summary of Public Consultation 12 B. Continuation of Public Consultations 12 C. Disclosure of RP 12 V. GRIEVANCE REDRESS MECHANISMS 12 VI. LEGAL FRAMEWORK 8 A. Government of Nepal Laws 8 B. ADB Safeguards Policy Statement 10 VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS 10 A. Eligibility 10 B. Entitlements 10 VIII. INCOME RESTORATION MEASURES 13 IX. RESETTLEMENT BUDGET AND FINANCING PLAN 14 X. INSTITUTIONAL ARRANGEMENTS 14 XI. IMPLEMENTAITON SCHEDULE XII. MONITORING AND REPORTING 17 i EXECUTIVE SUMMARY The Project1 is to improve quality of life and to help achieve higher and socially inclusive economic growth in key regional centers in Nepal through improved and affordable municipal services delivered effectively, efficiently and reliably by accountable local bodies. The Project will implement urban environmental improvement, on an integrated basis, in the areas of sewerage and drainage, solid waste, and urban roads and lanes in Biratnagar, Birgunj Butwal, and three municipalities of Kavre Valley (Banepa, Panauti and Dhulikhel) located outside Kathmandu Valley. This Resettlement Plan (RP) focuses on Kavre Valley Integrated Water Supply Project in these three municipalities. The main objective of this RP is i) to conduct social impact assessment of affected people ii) prepare compensation and livelihood restoration package for them. Structured questionnaires were used to administer individuals within the target groups. Desk study, coordination meeting with local people, field observation and target group questionnaire survey methods were used to collect the socio- economic data. This report was prepared to be consistent with the RF/IPF, ADB's Safeguards Policy Statement (2009) and GoN policies. The project is Category B for involuntary resettlement. The present study shows that 14 households (86 APs) will be affected from this subproject (11 water mill owners in downstream area, 2 land owners, and 1 encroacher whose house is located on government land.) Private land need to be acquired only for two places, one for Dhaneshwor reservoir Banepa (254.5 sq. m.) and another for pipe route(Devisthan to Shreekhandapur section) at Panauti -1 Choukot (200 sq.m.). Purchase of land is not required for remaining other reservoir and pipe route as they are proposed along public land and road right of way where no structures or temporary/mobile vendors are located. Amongst the 14 affected households, 3 are considered vulnerable households. One woman headed and one lower cast households found amongst the affected households. Although their economic status is not below the poverty line, they are considered as vulnerable groups because of their social standing and hardships requiring extra provisions. The household being physically displaced (encroacher on government land) is also considered vulnerable the household will need to find alternative housing arrangements. No affected persons (APs) lose more than 25 percent of their land or income or lose residential house. A detailed socio-economic survey was conducted on all project affected households. During the survey a PAFs of Dhaneshwor reservoir could not be contacted. During review of the RP at detailed design stage, this absent household should be contacted and included in the revised RP; hence socio-economic survey was conducted for 12 households. The socioeconomic survey shows that total population of affected persons is 86. The majority of affected households are farmers with some supporting income from water mill, selling milk and wage labour. The literacy status of affected HHs is about 88.2 percent. In the affected households, there are 58.4 percent Newar, 16.7 percent Tamang and remaining other cast are Kshetri, Gurung and Kami. The respective Municipalities will provide compensation to all APs identified. Broad principles of Resettlement and Rehabilitation for this Project will be the following: The negative impact on persons affected by the project will be avoided or minimized as much as possible; All losses including land, buildings, structures, and trees that result from project implementation will be compensated at full replacement costs at market value; Compensation to households affected by the loss of land/other assets or as per Entitlement Matrix; Before taking possession of the acquired lands and properties, compensation should be paid in accordance with this policy; 1 The Project was prepared through a Project Preparatory Technical Assistance. ADB. 2008. Preparing the Secondary Towns Integrated Urban Environmental Improvement Project. Manila. a Appropriate grievances redress mechanism should be established to ensure speedy resolution of disputes. Vulnerable households require extra measures to ensure their lives are improved A Compensation Determination Committee (CDC) will be constituted at the district level under Land Acquisition Act (LAA) 1977. This committee responsible for fixing compensation rates for land and other assets to be acquired for project. The CDC members include: (i) Chief District Officer (CDO), (ii) Chief Land Revenue Officer or Land Administrator, (iii) Respective project Chief for which land and other assets have to be acquired (iv) A representative of the District Development Committee and one representative from PAFs should be included in the committee. There is also provision in the LAA 1977, when land and other assets are obtained through direct negotiation, two parties i.e., Project and landowners discuss the land (plus assets) value and come to a conclusion. Thus, no special arrangement is needed. However, in practice such negotiation is made in the presence of local representatives (municipality/VDC) and residents. To buy the land as described above, Land Purchase Committee (LPC) will be formed in each municipality. One representative from PAFs should be included in the committee. The LPC will follow the following steps; Public consultation for the determination of compensation of land and other assets. Verification and identification of the landowners or property owners Negotiation with the land owners. Third party validation of negotiation process, as per ADB's SPS. For smooth and unhindered operation of the project, Integrated Kavre Valley Drinking Water Steering Committee has been formed. Representative of main political parties are members of the committee, Executive Officers and Project Managers of UEIP of three Municipalities are invitees' members. The steering committee has been playing role of coordination for the successful implementation of Integrated Water Supply System of Banepa, Panauti and Dhulikhel Municipalities. All forms of losses will be compensated based on what has been outlined in the entitlement policy outlined by this RP For the benefit of the APs, the Nepali version of a Summary RP will be made available to them with a copy maintained by PCO and PIU offices. A copy of the RP (draft and final) will be disclosed in ADB’s website. A Grievances Redress Committee (GRC) will also be set up under the project to address any grievances and objections resulting from the project. The PIU within the municipality assisted by social safeguard specialist from the Design Supervision Consultant will implement resettlement activities. A local Non Government Organization (NGO) will be hired by the municipality to monitor and confirm the RP implementation and ensure APs receive compensation before land is acquired and civil works begin. NGOs will also be responsible for linking APs to relevant government programs related to social and economic rehabilitation, as well as provide necessary training for livelihood development. Internal monitoring will be the responsibility of the municipality and the Department of Urban Development and Building Construction (DUCBC) and will start early during the project when the implementation of the RP starts and will continue until completion of the subproject. The resettlement cost estimate for this subproject includes eligible compensation for land and standing crops, assistance to vulnerable group, and training allowance. The cost related to land acquisition and resettlement/rehabilitation cost will be borne by the municipality with the DUDBC ensuring all costs are met. The PCO is to ensure that APs are compensated prior to land acquisition and commencement of civil works. A detailed indicative budget is given in this report. Costs include land and allowances for affected persons, including vulnerable households. b I. PROJECT DESCRIPTION A. Project Background 1. Government of Nepal with financial assistance of Asian Development Bank is implementing the Kavre Valley integrated water