SFG2992 V4 REV

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA Public Disclosure Authorized

ETHIOPIAN ELECTRICPOWER (EEP) Public Disclosure Authorized Public Disclosure Authorized

DISTRIBUTION REHABILITATION AND UPGRADING PROJECT

ABBREVIATED RESETTLMENT ACTION PLAN (ARAP) Public Disclosure Authorized DIRE DAWA TOWN

Prepared by Environmental Health, Safety and Quality Office

February 2017

Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

TABLE OF CONTENTS TABLE OF CONTENTS ...... I LIST OF TABLES ...... II ACRONYMS ...... III EXECUTIVE SUMMARY ...... IV 1. INTRODUCTION ...... 8

1.1. OBJECTIVE OF THE ARAP ...... 9 2. KEY COMPONENTS OF THE PROJECT AND BIOPHYSICAL PROFILE ...... 9

2.1. DESCRIPTION OF THE PROJECT ...... 9 2.2. PHYSICAL ENVIRONMENT OF THE MV LINES RIGHT OF WAY ...... 11 2.3. PHYSICAL ENVIRONMENT ...... 11 2.3.1. Description of the Project Environment ...... 11 2.3.2. Location ...... 12 2.3.3. Temperature ...... 12 2.3.4. Soil and Causes of Soil Erosion ...... 12 2.3.5. Water Resource ...... 13 2.4. BIOLOGICAL ENVIRONMENT ...... 13 2.4.1. Vegetation and Flora ...... 13 2.4.2. Wildlife ...... 14 2.5. HUMAN ENVIRONMENT ...... 14 2.5.1. Demographic Features ...... 14 2.5.2. Economy ...... 15 2.5.3. Unemployment ...... 15 2.5.4. Prevalent Diseases ...... 16 2.5.5. Sanitation and Waste Disposal Management ...... 16 2.6. ARCHEOLOGICAL, CULTURAL HERITAGE AND RELIGIOUS SITES ...... 17 2.7. INFRASTRUCTURES ...... 17 3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION ...... 18

3.1. EXPROPRIATION LAW ...... 18 3.2. COMPENSATION LAW ...... 19 3.3. GRIEVANCE REDRESS MECHANISM ...... 20 3.4. EEP STRATEGY FOR EXPROPRIATION AND COMPENSATION ...... 21 3.5. WORLD BANK OPERATIONAL POLICIES AND PROCEDURES FOR INVOLUNTARY RESETTLEMENT (OP 4.12 AND BP 4.12) ...... 21 3.6. COMPARISONS OF THE NATIONAL POLICES AND THE WORLD BANK OP 4.12 ...... 22 4. CENSUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE ...... 24

4.1. SUMMARY OF PAPS ASSET INVENTORY ...... 25 4.2. DETAILS OF THE IMPACTS CAUSED BY DISPLACEMENT ...... 25 4.2.1. Impact on Property ...... 25 4.2.2. Socio-economic Characteristics of Families ...... 27 5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS ...... 28

5.1. ELIGIBILITY FOR ENTITLEMENT ...... 28 5.2. ELIGIBILITY CRITERIA ...... 28 5.3. ENTITLEMENT MATRIX ...... 28 5.4. VALUATION AND COMPENSATION FOR LOSS AND RESETTLEMENT MEASURES ...... 34 5.5. CUT-OFF DATE FOR DETERMINING ELIGIBILITY ...... 36 6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION ...... 36

6.1. PUBLIC CONSULTATION WITH AFFECTED COMMUNITIES, CITY AND KEBELE ADMINISTRATION ..... 36 March 2016 i

Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

7. PROPOSED ASSISTANCE FOR PAPS ...... 39 8. INSTITUTIONALRESPONSIBILITY ...... 39 9. SOURCE OF BUDGET AND COST ESTIMATE ...... 40

9.1. SOURCE OF BUDGET ...... 40 9.2. COMPENSATION COST ESTIMATE OF SHOPS TO BE RELOCATED ...... 41 9.3. COMPENSATION COST BREAKDOWN FOR AFFECTED ASSETS ...... 42 10. RESETTLEMENT SCHEDULE ...... 42 11. MONITORING/FOLLOW UP ACTIVITIES ...... 43 12. EVALUATION ...... 44 ANNEX I:MINUTES OF MEETING ...... 45 ANNEX II: PHOTOS ...... 51 ANNEX III: CONTACTED PERSONS ...... 52

LIST OF TABLES

Table 1-1Consolidated Medium Volt Works in Dredawa Town...... 10 Table 3-1 Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps ...... 22 Table 4-1Affected houses and Shops……………………………………………………….18 Table 4.2 percentage of loss ...... 26 Table 4-4Socio-economic Characteristics of Families ...... 27 Table 4-5 Entitlement Matrix ...... 30 Table 9-1Compensation Cost Estimate of houses and Shops Error! Bookmark not defined. Table 9-3Compensation Cost Breakdown for Affected Assets ...... 42 Table 10-1Resettlement Schedule ...... 43

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ACRONYMS

ARAP Abbreviated Resettlement Action Plan CIS Corrugated Iron Sheets DDCA Diredawa City Administrative EHS&Q Environment, Health, Safety and Quality Eth.Birr Ethiopian Local Currency EEP Ethiopian Electric Power EEU Ethiopian Electric Utility EMP Environmental Monitoring Plan ESMP Environmental and Social Management Plan EPE Environmental Policy of Ethiopia FDRE Federal Republic of Ethiop Ha Hectare MEFCC Ministry of Environment, Forest and Climate Change MV Medium Voltage LV Low Voltage Km Kilo Meter KV Kilo Volt KW Kilo watt MoA Ministry of Agriculture M² Meter square masl Meter Above Sea Level OD Operational Directive OHL Overhead Line OP Operational Policy of the World Bank PAPs Project Affected Persons PIU Project Implementation Unit RIC Resettlement Implementation Committee ROW Right of Way RTU Remote Terminal Unit USD United States Dollar WB World Bank

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EXECUTIVE SUMMARY

This Abbreviated Resettlement Action Plan (ARAP) is prepared for Distribution Rehabilitation and upgrading project for Diredawa City. The ARAP contains established social inventory of households that are likely to be affected by the distribution rehabilitation and upgrading construction activities and a proposal to mitigate adverse social impacts associated with clearance of the Right of Way (ROW) of the sub-project and its subsequent operation.

From November 20 to November 30, 2016 a team of Sociologists and Environmentalists of EEP has conducted a Socio-economic survey and asset inventory of the sub-project.

The main objective of the Distribution Rehabilitation and Upgrading Project is to rehabilitate, expand and upgrade the distribution network of the city of Diredawa to ensure safe system operation and enable connection of new customers.

The main activities of the Distribution Rehabilitation and Upgrading works include:

 Concrete pole foundation civil works and pole erection;  Line stringing;  Laying underground 15 kV cable;  Switching Station erection;  Transformers and Compact substation installation;  Replacement bare low voltage conductors with insulated conductors (area bundled conductors);  Replacement of existing medium voltage conductors with insulated wire.

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including the Operational Policy 4.12, Involuntary Resettlement in respect to minimizing impacts, consulting those likely to be affected and planning to assist those to be displaced in restoring their livelihood. The aim is to ensure that those who will be affected by the project are adequately compensated for their losses and/or that their incomes are restored or improved in compliance with the policy. EEP carried out requisite studies to prepare the valuation of properties and made plans for implementation and monitoring of the project activities, to ensure project’s compliance with the Ethiopia’s land regulation and World Bank’s social Safeguards, Policies particularly of the Involuntary Resettlement.

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The Federal Democratic Republic of Ethiopia by signing the credit agreements for the Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed itself to abide by the World Bank Policy on involuntary resettlement. Thus, the legal framework of the Project is based on the Constitution of FDRE as transcended into EEP’s procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable resettlement strategy, offering adequate compensation and incentives for loss of land and other sources of livelihood (e.g., loss of income, crop, trees, housing and other structures) and for investments made on land by PAP’s in accordance with the law.

Grievances are first preferred to be settled amicably whenever possible. In the event of dissatisfaction by the PAPs, positive discussions will be made to convince the affected PAP in the presence of elders, local administration (municipalities, Woreda and Kebele administration) representatives or any influential person/s in the locality to first handle the grievance. In the event of continued non-satisfaction by the PAPs, the grievance will be forwarded to the appropriate administrative executive for consideration which may transfer it to court of law if unsolved. PAPs are required to channel their grievances to the Local committee verbally, or through telephone calls, and letters.

EEP in consultation with Woreda administrations for rural areas and with municipalities for the town sections has established property valuation committees as per Proclamation No. 455/2005, article 10, and number 1-3. To implement compensation payments for the PAPs, projects may initiate the establishment of more than one property valuation committee for each Woreda. The compensation estimate and amount is and will be calculated by the property valuation committees. The payment is and will be effected by the Project office.

The ARAP survey revealed that, 2 Male, 2 Female and totally 4 households comprising 9 Male and 7 Female entirely 16 individual PAPs and structures including three houses and two shops will be affected by the project in two different locations. One of the building to be affected is owned by a government cooperation, Ethiopian railways. Two houses and two shops are found in 03 Kebele around Gendedipo /kezira police community station and one house in 03 Kebele around Diredawa city administration. All houses and shops are covered with corrugated iron sheets /CIS/ and the percentage of lose all the affected properties with in the right of way is ≤4% as indicated table 4.2. March 2016 v

Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

The socio-economic survey revealed that all of the houses and shops will be relocated outside the five meter safety corridor in the project sites. All of the affected houses and shops can be accommodated within their own area but outside the restricted safety corridor.

Therefore, it is anticipated that PAPs will not move to other areas, they will only require relocating their houses and shops in their own holdings. There will be no change of PAP’s living condition in terms of distance to work places and schools for their children. PAPs will be compensated for the damage of their houses and shops. The amount of compensation for shops will be determined on the basis of the current cost per square meter for constructing a comparable building.

During the field assessment, information dissemination and public consultations meetings were conducted with the affected communities, stakeholders, municipalities and local Administration Officials. Organizations that were consulted include: 03Kebele Administration, Environmental Protection Sector Offices, and Agricultural and Rural Development Offices. The assessment team has discussed the positive and negative impacts of the Distribution Rehabilitation and Upgrading Project with the Project Affected People (PAPs) and with local administration officials. Generally, communities’ attitude towards the project is positive and local officials have expressed their willingness to support the Project in every necessary way. Participants of the meetings agreed on the general principles of compensation payments and requested reasonable, sufficient and timely compensation payments for their lost assets.

In regard to the stipulated assistance for PAPs, as the project is limited to relocation of houses and shops in their own premises, PAPs who relocate their houses and shops will be paid for their buildings. The amount of compensation for a building shall be determined on the basis of the current price per square meter in their respective city administration.

The Distribution Rehabilitation and Upgrading Project Office and local government administrations (City Administration and Kebele Authorities) will be responsible for the execution of the compensation payment operations. On this basis, the Project Office should assign a team, responsible for the effective and efficient implementation of the compensation estimated as per the valuation methods/techniques employed. EEP will allocate budget for the implementation of compensation payment for the expropriated property to be implemented by the Distribution Rehabilitation and Upgrading Project. Once the budget is March 2016 vi

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approved and transferred to the project account, the implementation will be undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimation of property is conducted by Property Valuation Committees, established in accordance with article 10 of Proclamation No. 455/2005. The Finance Division is responsible for processing the estimated fund and finally the compensation payment will be disbursed through the Project office.

The total compensation cost estimate for affected houses and shops is Birr 217,200.00(USD 9,670.52). The total compensation cost of the Project, including internal monitoring cost, Grievance redress related formation and orientation of the committee, log books and other costs and contingency is about Birr 326,920.00 (USD 14,555.65).

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1. INTRODUCTION

Over the past few years, Ethiopia has registered remarkable growth in the construction of electric power plants with the view to address the ever increasing demand as result of higher than anticipated economic improvement and renewed interest in a form of power generation. In addition to contributing for sustainable development, the sector creates ample job opportunities nationwide. Ethiopian Electric Power, under its Electricity Network Reinforcement and Expansion project, has received funds from the World Bank to finance the construction of urban distribution network rehabilitation and upgrading in Addis Ababa and seven other regional towns namely Adama, Hawassa, Jimma, Mekelle, Dessie, Bahir Dar and Dire Dawa.

This Abbreviated Resettlement Action Plan (ARAP) is prepared for Distribution Rehabilitation and upgrading project for Diredawa City. The ARAP contains established social inventory of households that are likely to be affected by the distribution rehabilitation and upgrading construction activities and a proposal to mitigate adverse social impacts associated with clearance of the Right of Way (ROW) of the sub-project and its subsequent operation.

From November 20 to November 30, 2016 a team of Sociologists and Environmentalists of EEP has conducted a Socio-economic survey and asset inventory of the sub-project.

The team visited the Distribution Rehabilitation and Upgrading Project of medium voltage line in Diredawa, and identified the Project Affected areas, conducts socio economic survey, and made consultation with city administration, Kebeles officials and Project Affected Persons (PAPs).

Most of the distribution rehabilitation and upgrading works are carried out along the existing road corridor and no major impacts are observed in the center of the city. But minimal Social and Environmental impacts could be occurred Kebele 03 around Diredawa city Administration and Gendedipo.

Efforts have been made to minimize negative impacts through subsequent re-routing distribution rehabilitation and upgrading of MV lines passes not to have a significant impact on environmentally sensitive areas like historical or archaeological, forest, churches, schools, endangered species, wetland, graveyards, national park, protected areas and others. However, there are minimal environmental and social impacts that are indicated below.

The socio-economic survey revealed that,2 Male, 2 Female and totally 4 households comprising

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7 Male and 5 Female entirely 16 individual PAPs and structures including three houses and two shops will be affected by the project in two different locations. Two houses and two shops are found in 03 Kebele around Gendedipo /kezira police community station and one house in 03 Kebele around Diredawa city administration. All houses and shops are covered with corrugated iron sheets /CIS/ and the percentage of lose all the affected properties with in the right of way is ≤4% as indicated table 4.2. Then these houses and shops will be relocated outside the five meter safety corridor in Diredawa City distribution rehabilitation and upgrading project sites. All of the affected houses and shops can be accommodated within their own area but outside the restricted safety corridor.

1.1. Objective of the ARAP

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including the Operational Policy 4.12,Involuntary Resettlement in respect to minimizing impacts, consulting those likely to be affected and planning to assist those to be displaced in restoring their livelihood. The ARAP mainly prepared to minimize social and environmental disruptions and resettlement of people as a result of the construction of distribution rehabilitation and upgrading of Medium voltage line. The aim is to ensure that those who will be affected by the project are adequately compensated for their losses and/or that their incomes are restored or improved in compliance with the national Laws and World Bank safeguard polices.

2. KEY COMPONENTS OF THE PROJECT AND BIOPHYSICAL PROFILE

2.1. Description of the Project

The Project components under the Electricity Network Reinforcement and Expansion project have the potential to provide significant social and environmental benefits. However, there are risks of adverse environmental and social impacts. As rule of thumb, at all levels, all projects and sub project implemented under EEP should adhere to acceptable environmental and social safeguards for sustainable and green economy of the country. The projects should be, as far as possible, not result in involuntary resettlement and land acquisition and where this is necessary, minimizing by exploring all viable alternative options/measures.

The main activities of the Distribution Rehabilitation and Upgrading works include:

 Concrete pole foundation civil works and pole erection;  Line stringing;

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

 Laying underground 15 kV cable;  Switching Station erection;  Transformers and Compact substation installation;  Replacement bare low voltage conductors with insulated conductors (area bundled conductors);  Replacement of existing medium voltage conductors with insulated wire.

Table 1-1Consolidated Medium Volt Works in Diredawa Town.

ITEM OF MV WORK QTY NEW OHL 200 mm2 insulated conductors 6.9 150 mm2 insulated conductors 41.7 300 mm2 Copper cable 1.6 240 mm + A1 Cable 0 LINE EQUIPMENT Feeder RTU1 + 5 4 Switched shunt capacitor 21 Automatic voltage boosters 1 Auto reclosers’ 1 Automatic line sectionalisers 4 Switches(AB Switches or section switches) 30 Source: - Contract agreement Volume 2, p. 41-42, 21 Jan 14

The Purpose of the Project is to:

 Enhance reliable power supply,  Reduction of voltage drop and power loss,  Supply of electricity to new customers, and  Enhance aesthetics of the cities (by replacing old wooden poles with new concrete poles and installation of underground cable)

The concrete poles to be used are typically about 9-14 meters high. This type of transmission normally follows the existing road corridor for bends and a curve where it is more economical to make shortcut if that is technically feasible.

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Casual labor will be recruited from the construction area thus providing employment opportunity to the local communities. No camp or other temporary facilities are required.

The length of MV covers underground cable lines 1.6 km and 48.6 km overhead lines totally 50.2 Km and go across mainly all Kebeles of Diredawa town. The project major activities that lead to houses and shops to be relocated outside the safety corridor is mainly concrete pole foundation civil works and line stringing.

The distribution rehabilitation and upgrading works generally follow the existing road corridor and there are minimal social and environmental impacts in the project area. Measures are taken to minimize impacts by re-routing the line but in some cases impacts are unavoidable. There is no other way but to clear trees that are found inside the 5 meter safety corridor. The major objective for the safety corridor is protection of persons from risk and property damage during construction and operational phases.

2.2. Physical Environment of the MV Lines right of way

The corridor of the MV line connecting to the all switching station with inner city passes through the existing road corridor. There is no any environmentally sensitive areas like historical or archaeological, forest, churches, schools, endangered species, wetland, graveyards, national park, protected areas and others in the right of way recognized by any organization except already mentioned houses, shops and the existing road corridors lined with trees so trimming of trees will be necessary in some cases to ensure achievement of standard safety clearance for distribution and rehabilitation of MV lines.

2.3. Physical Environment

2.3.1. Description of the Project Environment

Dire Dawa is a chartered autonomous Administration established by the proclamation No 416/2004 of the federal democratic republic of Ethiopian parliament. The governance structure consists of the legislative, the Judicial and executive organs. The government ladder is made of two structures, the city wide central organ and the kebele administration in the bottom. At present, the administration encompasses nine urban kebeles and 32 rural peasant associations as grassroots government structure. In terms of function, the administration is composed of state and municipal structures. Details of Physical environment and biological environments is presented below:

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2.3.2. Location

Dire Dawa Administration is located in eastern part of the country on the boarder of Afar plain and on the eastern highland just at foot slope of the Dengego mountain between 9027' and 9049'N Latitude and 41038' and 42019'E Longitude. The Administration is surrounded by Oromia National Regional State to the Eastern, Western, Northern and Southern sides, while the Somali National Regional State bounded the Administration in the east. Dire Dawa town is found at 515 kilo meter by road east of Addis Ababa.

The total area coverage of the Administration is estimated to be about 133,043 hectare. Diredawa is totally located in the Awash River Basin and the altitudinal ranges varies from 950 to 2,260 masl. The physiographic condition of the town ranges from almost flat to very steep mountains over 50% slope and elevation of about 2,300 masl. Dire Dawa, which is one of the largest and modern cities of Ethiopia, is the seat for the Dire Dawa Administration.

2.3.3. Temperature

As the Dire Dawa Administration is in the kola climate zone of the country, temperature is hot throughout the year with minor seasonal variation. With an average annual temperature of about 260c Dire Dawa Administration is one of the hottest regions in Ethiopia. However, there is a marked spatial variation in the regional temperature distribution. Temperature progressively increases northward from the so called Woina Dega type along the mountain tops in the southern margin. Generally the tops of the mountain ranges along the southern border and the low alluvial plains in the northeast margin experience the lowest and the highest temperature recordings respectively.

2.3.4. Soil and Causes of Soil Erosion

The Natural Environment of Diredawa administration is under extreme threat due to the interaction of several factors (natural and human made), Land degradation aggravated by soil erosion and loss of soil fertility, deforestation and overgrazing with their concomitant impact on the loss of biodiversity and water resource degradation are the challenging problems of the Administration.

The nature of the soil resources depends upon type of landforms, parent material, altitude, climate, geology and topography of the area. In this regard, shallow and infertile soils are the characteristics of the mountain and hills while deep and fertile soils are the major features of

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the valley bottoms, river terraces and flat plains of DDA. A recent soil survey study of DDA by Water Works Design and Supervision Enterprise has identified a number of soil units. Among the identified soil units, the most important ones are Cambisols, EutricCambisols, CalcaricCambisols, EutricVertisols, Fluvisols, CalcaricFluvisols,Regosols, Lepto soils and Arenesols. The interaction of several factors accelerates the process of soil erosion, which in turn accelerates the process of land degradation. The following are among the major causes for accelerated soil erosion in Dire Dawa Administration: Heavy Rainfall, Subsurface flow, Overgrazing, Erodible Nature of the Soil, Deforestation, Cultivation of Steep Lands and Poor Farming Practice, Steep Slopes, Undulating and Rugged Terrain, Improperly Laid out and Constructed Roads, and Improper Exploration of Construction Materials.

2.3.5. Water Resource

The major water sources for Diredawa administrative council is ground water resources. There are no perennial large rivers in DDA, which flow throughout the year, however according to the study made by the Agricultural Development Bureau of Diredawa Administration in 1992 E.C.; there are 130 springs with different discharging capacity and over 44 intermittent streams. The groundwater occurrence, distribution and flow regime is highly governed by topography, tectonics, and geological formation, aerial and topological relationship of the geological formation. Based on these major factors, the DDA can be categorized into two groundwater systems i.e. the escarpment and the foot of the escarpment (groundwater basin of Dire Dawa).

2.4. Biological Environment

2.4.1. Vegetation and Flora

Little of the natural vegetation of the highland remains today. Acacia woodlands, bushes, open shrubs and grass lands are typical features of the regions vegetation cover. The vegetation cover of DDA is categorized as vegetation of arid and semi-arid lands (highly variable, including cactus scrub, thorn scrub and many woods and sparse grasses formations). There is no climatic climax forest in the region except patches of few junipers remnants in the upper parts and some acacia trees in the low lands. The vegetation of the region is not found in contiguous form covering large area; rather it is seen as fragmented patches of bush land, shrub land and trees in agricultural sites and hillsides. The influence of people and his domestic animals has profoundly altered both the vegetation and landscape. Ethiopia has issued a number of regulations aimed

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to conserve and protect the remaining natural ecosystems of the country in National Parks, Wildlife Sanctuaries, and Controlled Hunting Areas. However, the project area is neither contiguous with nor in close proximity with any of these nationally protected areas.

2.4.2. Wildlife

As there is no forest cover that suit for wild life habitat, one cannot expect much wild life species in the DDAC. The excessive overstocking of livestock and other unregulated use of the resources seen at present is resulting in severe overgrazing, degradation of the ecological systems followed by habitat degradation. This is done at the expense of wildlife resource leading to the loss of both fauna and flora in the natural ecosystem. The remnant woodland, shrub land and bush land habitats of wildlife are located in the flat lowlands of the southeastern part of the Administration. Major mammalian species such as, Greater kudu (Tragelaphusstrepsiceros), Lesser kudu (Tragelaphusimberbis), Lion (Pantheraleo), Leopard (Pantherapardus), Gerenuk (Litocraniuswalleri), Dikdik (MadoquaSaltiana), Caracal (Felis caracal), Jackals (Canisaureus), Baboons (Papiohamadryas), Abyssinian Hare (Lepusabyssinica) and warthogs (Phachocoreusaethiopicus) can be mentioned as some typical inhabitants of the habitat type. There were no nationally or locally known protected or conservation areas in DDA. As learned from the field investigation, and sporadic discussions held with randomly meet local community members including elders revealed that wildlife numbers and distributions have been negatively affected from their past status. That is, those species that were once abundant and/or common and cover large areas in their distribution have declined tremendously. The major factors identified for these include: Natural habitats degradation, Indiscriminate poaching of wildlife, Lack of conservation awareness among the community, and; Competition for ecological niche between livestock and wildlife. In other side, according to Ethiopian Wildlife and Natural History Society (EWNHS, 1996), none of the 76 nationally designated Important Birds are found in Diredawa.

2.5. Human Environment

2.5.1. Demographic Features

According to CSA Statistical Abstract, 2011 the total population of the DDA is projected to reach at 377,000, of which 189,000 (50.1%) are male and 188,000 (49.9%) are female. Unlike other regions of the country, the majority of the population resides in urban areas, i.e., 256,774

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(68.1 %) and the remaining 120,226 (31.9%) lives in rural areas.

With regard to sex composition in the urban and rural areas, out of the total urban population of 256,774, the males constitute 127,969 (49.8%) whereas the remaining 128,805 (50.2%) are females. There are also 60,594 (50.4%) males in the rural areas out of the total rural population of 120,226, and the balance 59,632 (49.6%) are females. The population density of the DDA is estimated to be about 292.7/km2. The Eastern and western parts of the Administration are relatively densely populated than the Northern part, which is dominantly inhabited by pastoralists. 76% of the rural population confined to only 7% of the total area of the Administration and this is mainly attributed to agricultural favorability.

2.5.2. Economy

Dire Dawa Administration as located in the eastern parts of the country is a strategic trade center, both for import and export trade. Its close proximity to the Middle East and Djibouti markets has rendered an advantage and remarkable contribution to it for being a business center. Though the regional GDP has not been yet worked out to analyze the structure of the economy of the DDA in terms of the contribution of each sector to the Administration’s GDP. However, the relative importance of each sector can be reflected by the proportion of people it employs. Accordingly, it was found out that the service sector, mainly trading is the prime employer followed by the manufacturing sector.

According to WWDSE there are six large manufacturing establishments: the textile mill, soft drink factory, meat factory, oil mill, cement factory and food complex. Given the fact that about three-quarters of the population resides in the urban areas, agriculture is not the dominant sector in the Administration unlike the other regions of the country.

2.5.3. Unemployment

One of the pervasive problems of urban centers in general and Dire Dawa in particular is the existence of very high unemployment rate. According to CSA Report on Urban Bi-Annual Employment Unemployment Surveys, in April 2004, there were 29,899 unemployed persons in Dire Dawa city, of which 21,232 are females with unemployment rate of 46.6% and 8667 are males with unemployment rate of 19.8%. Total Unemployment rate for Dire Dawa reaches 33.5 percent, which is higher than the National urban unemployment rate of 22.9 percent. The rate

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also ranks first from urban centers of Ethiopia, followed by Addis Ababa (29.1 %), Tigray (22.1 %) &Harari (22.1 %).

2.5.4. Prevalent Diseases

According to the morbidity statistics recorded by health centers and hospitals found in Diredawa City, the leading public health in the town is malaria. Other prevalent diseases in the order of their dominance include upper respiratory tract infections, eye diseases, intestinal parasites, skin infections and Genito-urinary system diseases.

2.5.5. Sanitation and Waste Disposal Management

Safe disposal of municipal solid waste is important for the protection of both public health and the environment. According to the report of the DDEPA in 2003, nearly 42,244 kg of waste is daily disposed on the open fields and drainage ditches and this accounts for 25.2% of the total waste generated in the city per day. The rest 15.2 % and 10% belongs to the open fields and the drainage ditches respectively. It is also estimated that 64.1% of the solid waste generated is collected in the garbage bins, by side loader and lifter trucks, 6% is buried and burned, and nearly 4.7% of the solid waste is disposed in different ways.

The existing waste disposal site was used for the last few years is totally uncontrolled city disposal type, In general solid waste disposal sites in Dire Dawa are inappropriate and unprotected or ill managed. But recently a new and standard waste disposal land fill site was constructed outside the town at the periphery of GendeGerada urban kebele.

Statistical figures obtained from Dire Dawa Water Supply and Sewerage Authority indicate that the daily water consumption of the city is estimated to be 9,500,000 liters (2005) giving the daily per capita water consumption of 35 liter. Preliminary assessment conducted by the DDWSA also indicates that nearly 7, 125,000 liter liquid waste is generated in the city per day giving the daily per capita liquid waste generation rate of 26.2 litters. The same way as the solid waste disposal practices, liquid waste products of the urban residential areas are carelessly discharged everywhere. It is estimated that more than 97% of the liquid waste generated is carelessly being discharged into the open fields and ditches.

The above waste disposal practices are directly or indirectly end up with the pollution of the environment particularly, it results in the deterioration of ground water resources quality, which accounts for about 96% of the water supply of the city. Besides, no system exists for removal

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and treatment of toxic waste products from industries.

2.6. Archeological, Cultural Heritage and Religious Sites

Although Dire Dawa is primarily known by its trading centers, it also has its own numerous and precious cultures and heritages of glorious attractions. These places of interest include: Laga- oda ancient caves are located some 38 kms away from the center of Dire Dawa city, Hinkuftu cave (located just in the city at an area called Addis Ketema), Africans Graveyard( A cemetery was built after the Second World War in memory of members of British Air Force and African soldiers who sacrificed their lives for the freedom of Ethiopia against the Italian invasion during, located close to the center of the town in higher kebele 05), Italian Mosque(located in an area called Laga Hare), Ancient Catholic Church(located at Biyo-Awale Kebele Peasants Association some 20 kms away from Dire Dawa City to the southwest), Ancient Railway Station, Kezira (Afetessa) Open Market, Camel Market(located in the town in higher 3, kebele 13), Italian Fort (located on top of Ganda-Gara hill), and Abeyaziz Mosque(located in Hulul Mojo Peasant Association some 25 kms away from Dire Dawa City). But Upon visiting the areas of the proposed lines there the team did learn, Neither the MV lines nor the Transformers sites are transverse in an area of archaeological, Historical or cultural importance according to the local officials and experts. Because there was no apparent observable evidence of any remains disturbed, that could indicate the presence of important archaeological remains that means the risk value of the project is insignificant, where no significant is found.

Though field visits and enquiries to residents along the distribution network lines have indicated that, to the best of their knowledge, there are no known sites of historical or archaeological significance in the proposed distribution lines, it is a must that precautions need to be taken during excavation and the installation of the power lines in order to safeguard historical, archeological cultural sites.

2.7. Infrastructures

In terms of road network, Diredawa is connected with Addis Ababa by a recently upgraded asphalted road, which is about 510km long. There are also several roads radiating from Diredawa and linking all the districts of the Diredawa City Administration. In addition, Diredawa is connected to all the major towns of Somali, Oromiya and Harrar region and administrative regions in the west, southwest and southern parts of Ethiopia through major link

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roads.

Transportation and communication facilities have a significant role to the development of the Administration as they facilitate efficient production, exchange and distribution of goods and services as well as information and people to and from the Administration. The DDA is served by all modes of transportation and communication with the exception of water transport.

Ethiopian Electric Power Corporation is the sole electric power supplier in Diredawa. Power is distributed to the town from three substations, namely; the Sabian, the Legahare and the Hnaz substation. According to the Administration’s Statistical Abstract, (2004), there are 18,649 subscribers in the year 2003/04, of which 15,911 (85%) were residences whereas as the balance 2,738 (15%) was subscribed by the various industries found in the town, businesses and government organizations. The number of subscribers has also grown by 10.3% from 16, 897 to 18,649 between the year 2001/02 and 2003/2004. According to a study conducted by the DDDIPO, only about 57.2 % of the population has access to electricity.

3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION

3.1. Expropriation Law

The Federal Democratic Republic of Ethiopia by signing the credit agreements for the Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed itself to abide by the World Bank policy on involuntary resettlement. Thus, the legal framework of the Project is based on the Constitution of FDRE as transcended into EEP’s procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

According to the Constitution of the Federal Democratic Republic of Ethiopia (FDRE), land is a public property and cannot be subject to sale or to other means of exchange. In other words, alienating land by sale, mortgage or any form of transfer with respect to land is prohibited. Ownership of land is vested on the State while citizens have only usufruct rights over land.

The right regarding the latter may be considered “private property” and any interference of the usufruct right, such as expropriation, shall entail compensation. A usufruct right gives the user of the land the right to use the land and the right to benefit from the fruits of her/his labor. This may include crops, trees, etc. found on the land or any permanent works (such as buildings, etc.).

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This is clearly provided in Article 40.7;

“Every Ethiopian shall have the full right to the immovable property he builds and to the permanent improvements he brings about on the land by his labour or capital.”

The FDRE Constitution further states, among other things, that the owner of such rights is entitled to compensation and that the particulars shall be determined by law. Article 40.8 in turn strengthens this by stating that private property may be compensated if expropriated by the government for public purposes.

The expropriation of land holdings set out in the FDRE Constitution and in the proclamation 455/2005 is mostly in agreement and in line with World Bank policies (OP and BP 4.12).

3.2. Compensation Law

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable resettlement strategy, offering adequate compensation and incentives for loss of land and other sources of livelihood (e.g., loss of income, crop, trees, housing and other structures) and for investments made on land by PAP’s in accordance with the law.

The Constitution of the Federal Democratic Republic of Ethiopia (FDRE) has several provisions which have direct policy, legal and institutional relevance for the appropriate implementation of the resettlement/rehabilitation plans prepared by development projects and program.

Article 44 No.2 of FDRE Constitution states that:

“All persons who have been displaced or whose livelihoods have been adversely affected as a result of state programs have the right to commensurate monetary or alternative means of compensation, including relocation with adequate state assistance.”

The Constitution also guarantees people whose livelihood is land based and pastoralists the right to have access to land as well as protection against eviction from their possession (Article 40.4 and 40.5).

Article 40.8 also states that;

“Without prejudice to the right to private property, the government may expropriate

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private property for public purposes subject to payment in advance of compensation commensurate to the value of property.”

In July 2005, the Government of Ethiopia has issued a proclamation, “Proclamation to provide for the expropriation of land holdings for public purposes and payment of compensation”, Proclamation No. 455/2005. This proclamation has several articles on the determination of compensation, compensation for displacement, valuation procedures, establishing property valuation committees and on complaints and appeals. The proclamation gives power to Woreda and urban administrations to expropriate and use land for public services.

Part two, article 3, No.1 of the Proclamation No. 455/2005 states that:

“A Woreda or an urban administration shall, upon payment in advance of compensation in accordance with this proclamation, have the power to expropriate rural or urban landholdings for public purpose where it believes that it should be used for a better development project to be carried out by public entities, private investors, cooperative societies or other organs, or where such expropriation has been decided by the appropriate higher regional or federal government organ for the same purpose.”

Proclamation No. 455/2005 also provides displacement compensation for rural land holdings. Part three of article 8 states that:

“A rural landholder whose land holding has been permanently expropriated shall, in addition to the compensation payable under article 7 of this proclamation, be paid displacement compensation which shall be equivalent to ten times the average annual income he secured during the five years preceding the expropriation of the land.”

The proclamation also states that in urban areas, PAPs will be provided with a plot of land (land for land compensation) for their expropriated land to be used for the construction of house and also be paid compensation for displacement.

3.3. Grievance Redress Mechanism

Grievances are first preferred to be settled amicably whenever possible. That is, positive discussions are made to convince the affected PAP in the presence of elders, local administration (municipalities, Woreda and Kebele administration) representatives or any

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influential person/s in the locality to first handle the grievance. In the event of continued non- satisfaction by the PAPs, the grievance will be forwarded to the appropriate administrative executive for consideration which may transfer it to court of law if unsolved.

According to Proclamation N0.455/2005, Article 11, sub article 1:

“In rural areas and in urban centers where an administrative organ to hear grievances related to urban landholding is not yet established, a complaint relating to the amount of compensation shall be submitted to the regular court having jurisdiction.”

In urban areas, a PAP who is dissatisfied with the amount of compensation may complain to an administrative organ and if the PAP is still not satisfied, may appeal to the regular appellate court or municipal appellate court within thirty days from the date of the decision.

3.4. EEP Strategy for Expropriation and Compensation

It is the objective of EEP to avoid or reduce to a minimum level, the detrimental environmental and social impacts and effects of the project operations, on the livelihood of those people to be served by the project components. However, if adverse social impacts induced by project operations are inevitable, EEP’s Resettlement/Rehabilitation Policy Framework /RPF/ stresses that PAPs should be consulted and compensated for loss of their properties and other inconveniences.

EEP will allocate a budget for compensation payment expected during project implementation. EEP in consultation with Woreda administrations for rural areas and with municipalities for the town sections shall establish property valuation committees as per Proclamation No. 455/2005, article 10, and number 1-3.

To implement compensation payments for the PAPs, projects may initiate the establishment of more than one property valuation committee for each Woreda.

The compensation estimate and amount is and will be calculated by EEP Project Office and EHS&Q Social and Environmental Experts in concert with the property valuation committees. The payment is and will be effected by the Project office.

3.5. World Bank Operational Policies and Procedures for Involuntary Resettlement (OP 4.12 and BP 4.12)

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World Bank Operational Policy (OP 4.12) and Bank’s Procedures (BP 4.12) on involuntary resettlement serve as operational guidelines for WB-financed projects.

The World Bank, in its Operational Policy (OP 4.12) states the overall policy objectives of involuntary resettlement as follows:

a. Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs.

b. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

c. Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

EEP commits itself to adopt OP 4.12 and BP 4.12 as working documents in the implementation of resettlement and rehabilitation of PAPs. The commitment of EEP to comply with the requirements of World Bank’s Operational Policies (OP 4.12) and Bank’s Procedures (BP 4.12) has been demonstrated, not only in the ongoing implementation of the Energy Access Project but also in the implementation of other projects, undertaken by the Ethiopian Electric Power .

3.6. Comparisons of the National Polices and the World Bank OP 4.12

There are a number of differences and gaps between the national policies and legislation and the World Bank Policy OP 4.12. These gaps relate to the general principles for resettlement, eligibility criteria, the notification period for expropriation and resettlement, as well as the procedures required throughout the resettlement process. In case of conflicts between the FDRE law and Bank Policy, Bank policy will prevail. The following table is presented to summarize the comparison of the Ethiopian Legislation and World Bank’s Operational Policy, and portrays recommendations to address the identified gaps.

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Table 3-1Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps Theme WB OP/BP4.12 Ethiopian Law Comparison Recommendation to address gap

Policy OP4.12 requires that involuntary resettlement The Constitution of Ethiopia and Avoidance or minimization of World Bank OP 4.12 overall objectives Objectives should be avoided wherever possible or Proclamation No 455/2005 give power to involuntary resettlement is not specified shall be applied to avoid or minimize minimized by exploring alternatives. Woreda or urban administrations to in the Ethiopian legislation. involuntary resettlement and to ensure Resettlement program should be sustainable, expropriate rural or urban landholdings for Proclamation No 455/2005 allows for a consultation throughout the process. include meaningful consultation with affected public purpose where it believes that it complaints and grievance process. parties and provide benefits to affected parties should be used for a better development Proclamation No 455/2005 allows for Displaced persons should be assisted in Article 7(5) states that the cost of removal, some form of support to the displaced improving livelihoods etc. or at least restoring transportation and erection shall be paid as persons, but does not explicitly specify them to previous levels compensation for a property targeted for consultation with affected persons the project. through the process.

Notification Article 10 of OP4.12 requires that the Article 4 of Proclamation No 455/2005 There is a gap in Proclamation OP4.12 should be applied to ensure period /timing resettlement activities associated with requires notification in writing, with details No 455/2005 to allow land to be displaced person compensated and of implementation of the development project to iming and compensation, which cannot be expropriated before necessary measures supported prior to handover of land to displacement ensure displacement or restriction of access does less than 90 days from notification. It for resettlement take place, particularly the development. not occur before necessary measures for requires that land should be handed over before the displaced person has been resettlement are in place. In particular, taking of within 90 days of payment of compensation paid. This can have serious land and related assets may take place only after payments. If there is no crop or other consequences for those affected, as they compensation has been paid and where property on the land, it must be handed over may be displaced without shelter or any applicable, resettlement sites and moving within 30 days of notice of expropriation. It means of livelihood. allowances have been provided to displaced further gives power to seize the land persons. through police force should the landholder be unwilling to hand over the land

Eligibility for OP4.12 gives eligibility to all PAPs whether they Proclamation No 455/2005, Article 7(1) While Ethiopian law only grants ENREP RPF document acknowledges Compensation have formal legal rights or do not have formal allows’ landholders’ to be eligible for compensation to those with lawful in an event where there is a conflict legal rights to land, but have a claim to such land compensation if they have lawful possession of the land, OP4.12 entitles between the national law and WB and those who do not have recognizable legal possession over the land to be expropriated compensation to all affected individuals OP/BP4.12 guidelines, the WB policy right or claim to the land. and owns property situated thereon” regardless of landholding rights to land prevails as resettlement framework. titles (including squatter settlements)

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Theme WB OP/BP4.12 Ethiopian Law Comparison Recommendation to address gap

Compensation World Bank OP4.12 Article 6(a) requires that Article 7 of Proclamation No. 455/2005 The World Bank requirement for The World Bank requirements for displaced persons be provided with prompt and entitles the landholder to compensation for compensation and valuation of assets is compensation must be followed, as per effective compensation at full replacement cost the property on the land on the basis of that compensation and relocation must OP4.12 footnote 1, which states, for losses of assets attributable directly to the replacement cost; and permanent result in the affected person securing “Where domestic law does not meet project. If physical relocation is an impact, improvements to the land, equal to the property and a livelihood to at least the standard of compensation at full displaced persons must be provided with value of capital and labor expended. equivalent standards as before. This is replacement cost, compensation under assistance during relocation and residential not clearly stated in local Proclamations. domestic law is supplemented by housing, housing sites and /or agricultural sites Where property is on urban land, It is expected that the regulations and additional measures necessary to meet to at least equivalent standards as the previous compensation may not be less than directives will provide more clarity and the replacement cost standard” site. Replacement cost does not take depreciation constructing a single room low cost house clearer guidance in this regard. into account. In term of valuing assets. If the as per the region in which it is located. It residual of the asset being taken is not also requires that the cost of removal, economically viable, transportation and erection will be paid as compensation for a relocated property continuing its service as before. Valuation formula are provided in Regulation No. 135/2007 Responsibiliti According to OP4.12, Article 14 and 18, the Article 5 of Proclamation No 455/2005 The process required for the project As per the World Bank requirements, es of the borrower is responsible for conducting a census sets out the responsibilities of the proponent / implementing agency lacks project processes included screening, a project and preparing, implementing, and monitoring implementing agency, requiring them to descriptive processes in local census, and the development of a plan, proponen the appropriate resettlement instrument. Article gather data on the land needed and works, legislation. management of compensation 24 states that the borrower is also responsible for and to send this to the appropriate officials payments and monitoring and adequate monitoring and evaluation of the for permission. It also requires them to pay evaluation of success. It must also activities set forth in the resettlement instrument. compensation to affected landholders include proper consultation with the In addition, upon completion of the project, the affected parties throughout the process. borrower must undertake an assessment to determine whether the objectives of the resettlement instrument have been achieved. This must all be done according to the requirements of OP4.12. Article 19 requires that the borrower inform potentially displaced persons at an early stage about the resettlement aspects of the project and takes their views into account in project design.

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4. CENUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE

The purpose of the baseline household survey was to establish a social inventory of local inhabitants occupying and operating livelihood activities on the ROW of clearance of the line stringing and concrete pole foundation civil works in the 5 meter safety corridor. The survey utilizes collection of vital and relevant information of individual PAPs and households that are likely to be affected by the project activities. The baseline survey was carried out between from November 20 to November 30, 2016.

4.1. Summary of PAPs Asset Inventory

The household baseline survey revealed that, 2 Male, 2 Female and totally 4 households comprising 9 Male and 7 Female entirely 16 individual PAPs residing in 03 Kebele within the Project Right of Way clearance areas. In addition to the four households, one government institution (Ethiopian Railways Cooperation) is within the right way clearance area. The finding shows that, 3 houses and 2 shops were identified as the affected property in 03 Kebele for implementing the project.

The census and asset inventory focused on properties situated within and inside the project 5 meters ROW clearance areas. The survey identified four households owning two houses and 2 shops as well as a building in the government institution, Ethiopian Railways Cooperation’s compound, will be affected by the proposed project.

4.2. Details of the Impacts Caused by Displacement

4.2.1. Impact on Property

The socio-economic survey revealed that 3 houses and 2 shops will be relocated outside the five meter safety corridor in the project sites and only require relocating of houses and shop in their own holdings.

The percentage of loss for all the affected properties with in the right of way is ≤4% as indicated in table 4.2. Due to this, all of the affected

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houses and shops can be accommodated within their own area but outside the restricted safety corridor. All affected houses and shops by the Project are found in two different locations. Two houses and two affected shops are found in 03 Kebele around GendeDipo and 1 house in 03 Kebele around Diredawa City Administration. All houses and shops are covered with corrugated iron sheets /CIS/.

4.2.1.1. Impacts on Houses and Shops

All of the affected houses and shops can be accommodated within their own area but outside the restricted safety clearance. The percentage of lose all the affected properties with in the right of way is ≤4% as indicated table 4.2. Therefore, it is anticipated that PAPs will not move to other areas, they will only require relocating their houses and shops in their own holdings/ premises. There will be no change of PAP’s living condition in terms of distance to work places and schools for their children.

PAPs will be compensated for the damage of their houses and shops. The amount of compensation for houses and shops will be determined on the basis of the current cost per square meter at full replacement cost. The location of the affected houses and shops is in 03 Kebele, around GendeDipo and Diredawa City Administration.

The following table summarizes all relevant data for affected houses and shops in 03 Kebeles of Diredawa town.

Table 4-1Affected Shops and Houses No. Household Affected House in Uses of Employm Location Remark head name/ Owner house type m² houses ent /Approxi Status of mate/ all adults 12 house merchant 03 Kebele Around 1 WerkineshWeldegi 1 CIS* Diredawa wergis city Administrati on 2 MershaMekonon 1 CIS 6 Shop >> >> GendeDipo

3 TigistHaylu 1 CIS 6 Shop >> >> >>

4 ‘Hawa Ali 1CIS 12 house >> >> >>

5 Ethiopian 1 CIS 24 house - >> >> Railways

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Cooperation

Source: Socio-economic Survey, November 2016

Table 4-2 percentage of loss

No Household Total Area in Affected land Percentage . head name/ Owner ha in ha of loss WerkineshWeldegiwergis 1 0.04 0.0012 3 2 MershaMekonon 0.02 0.0006 3

3 TigistHaylu 0.04 0.0006 1.5

4 ‘Hawa Ali 0.04 0.0012 3

5 Ethiopian Railways 0.0625 0.0024 4 Cooperation

Average 2.9

4.2.2. Socio-economic Characteristics of Families

The household baseline survey depicts a total of four households, one male and three female headed households to be affected by the project. These households uphold a total of 16 family members residing in 03 Kebele within the project Right of Way clearance areas. Details of the socioeconomic characteristics of the PAPs are presented in the following table 4-4.

Table 4-2Socio-economic Characteristics of Families

Name of No. of No. of children No. of adults No. of Sources of income household head persons in < 13 years of + 60 years Stude No. household age of age nts M F 1 2 2 WerkinehWeldegi 2 1 1 Trade wergis 2 MershaMekonon 2 1 1 - 2 >> 3 TigistHaylu 1 2 1 1 2 >> 4 ‘Hawa Ali 4 2 3 2 >>

Source: Socio economic survey, November 2016

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5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS

5.1. Eligibility for Entitlement

The resettlement and rehabilitation are recognized as civil rights in the Ethiopian legislation (Art. 44 No.2 of the Constitution of the FDRE), so that PAPs should be consulted and compensated for the loss of their properties due to Government or public induced projects. Moreover, the FDRE committed itself to abide with the WB Operational Safeguard Policy on Involuntary Resettlement. Thus, EEP shall adopt the WB`s policy for resettlement/rehabilitation for the fact that the eligibility criteria set by the WB`s is basically comply with the Ethiopian national legal requirements.

The GOE and the World Bank Resettlement Guidelines require all individuals and households whose assets and productive resources affected as a result of the stringing project are entitled for compensation and/or other forms of assistance. Pursuant to the policy frameworks, eligible PAPs for entitlement under this project include households with formally recognized property rights and those who have held land under informal purchase agreements and arrangements.

5.2. Eligibility Criteria

Concerning the lost assets the World Bank has stressed that households that have only partially lost their assets but are no longer economically viable should be entitled to full compensation/resettlement. Moreover, the following criteria for eligibility for the displaced persons are adopted for the ARAP preparation:

. Those who have formal legal right to land (including customary and traditional rights recognized by the law of the Country). . Those who do not have formal legal rights to land at the time the census begins but have a claim to such lands or assets, provided that such claims are recognized under the laws of the Country or become recognized through a process identified in the resettlement plan. . Those who have no recognizable legal right or claim to the land they are occupying.

5.3. Entitlement Matrix

This ARAP is based on the National and World Bank`s Involuntary Resettlement Policy and other relevant laws and practices of the Government of Ethiopia. The resettlement entitlement

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matrix shown in Table 4-5 is based on these legal, administrative and policy frameworks and recognizes different types of losses associated with dislocation and resettlement. These include the loss of house, and crop and other agricultural properties. Type and size of affected asset qualified for entitlement and mechanisms for other forms of assistance are presented below in matrix format.

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Table 4-1 Entitlement Matrix Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits Agricultural land Cash compensation for affected land usage title holder Cash compensation for affected land equivalent to replacement value, taking into equivalent to market value compensation rates as per government regulation. Less than 20% of land holding affected Land remains economically viable.

Tenant/ lease holder Cash compensation for the harvest or product from the affected land or asset, equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land.

Greater than 20% of land holding lost Farmer/ Title holder Land for land replacement where feasible, or compensation in cash for the entire Land does not become economically landholding according to PAP’s choice, taking into account market values for the land, viable. where available Land for land replacement will be in terms of a new parcel of land of equivalent size and productivity with a secure tenure status at an available location which is acceptable to PAPs. Transfer of the land to PAPs shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature )

Tenant/Lease holder Cash compensation equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature

Commercial land Land used for business partially affected Title holder/ business owner Cash compensation for affected land, taking into account market values for the land, where available. Limited loss Opportunity cost compensation equivalent to 5% of net annual income based on tax records for previous year (or tax records from comparable business, or estimates where such records do not exist). Business owner is lease Opportunity cost compensation equivalent to 10% of net annual income based on tax holder records for previous year (or tax records from comparable business, or estimates where such records do not exist).

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits Assets used for business severely Title holder/business owner Land for land replacement or compensation in cash according to PAP’s choice; cash affected compensation to take into account market values for the land, where available. Land for land replacement will be provided in terms of a new parcel of land of equivalent size and market If partially affected, the remaining assets potential with a secured tenure status at an available location which is acceptable to the become insufficient for business PAP. purposes. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance) Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates) Business person is lease Opportunity cost compensation equivalent to 2 months net income based on tax records for holder previous year (or tax records from comparable business, or estimates), or the relocation allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance in rental/ lease of alternative land/ property (for a maximum of 6 months) to reestablish the business. Residential land Land used for residence partially Title holder Cash compensation for affected land, taking into account market values for the land, where affected, limited loss available. Remaining land viable for present use.

Rental/lease holder Cash compensation equivalent to 10% of lease/ rental fee for the remaining period of rental/ lease agreement (written or verbal) Title holder Land for land replacement or compensation in cash according to PAP’s choice; cash compensation to take into account market values for the land. Land for land replacement shall be of minimum plot of acceptable size under the zoning law/s or a plot of equivalent size, whichever is larger, in either the community or a nearby resettlement area with adequate physical and social infrastructure systems as well as secured tenure status. When the affected holding is larger than the relocation plot, cash compensation to cover the difference in value. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance) Land and assets used for residence Rental/lease holder Refund of any lease/rental fees paid for time/use after date of removal severely affected Cash compensation equivalent to 3 months of lease/ rental fee Remaining area insufficient for continued Assistance in rental/ lease of alternative land/ property use or becomes smaller than minimally Relocation assistance (costs of shifting + allowance)

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits accepted under zoning laws Structures are partially affected Owner Cash compensation for affected building and other fixed assets taking into account market values for structures and materials. Remaining structures viable for Buildings and structures continued use Cash assistance to cover costs of restoration of the remaining structure Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant), taking into account market values for materials. Disturbance compensation equivalent to two months rental costs Entire structures are affected or partially Owner Cash compensation taking into account market rates for structure and materials for entire affected structure and other fixed assets without depreciation, or alternative structure of equal or better size and quality in an available location which is acceptable to the PAP. Remaining structures not suitable for Right to salvage materials without deduction from compensation continued use Relocation assistance (costs of shifting + allowance) Rehabilitation assistance if required (assistance with job placement, skills training) Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant) Relocation assistance (costs of shifting + allowance equivalent to four months rental costs) Assistance to help find alternative rental arrangements Rehabilitation assistance if required (assistance with job placement, skills training) Squatter/informal dweller Cash compensation for affected structure without depreciation Right to salvage materials without deduction from compensation Relocation assistance (costs of shifting + assistance to find alternative secure accommodation preferably in the community of residence through involvement of the project Alternatively, assistance to find accommodation in rental housing or in a squatter settlement scheme, if available) Rehabilitation assistance if required assistance with job placement, skills training) Street vendor (informal Opportunity cost compensation equivalent to 2 months net income based on tax records for without title or lease to the previous year (or tax records from comparable business, or estimates), or the relocation stall or shop) allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance to obtain alternative site to re- establish the business. Standing crops Crops affected by land acquisition or PAP (whether owner, tenant, Cash compensation equivalent to ten times the average annual income s/he secured during temporary acquisition or easement or squatter) the five years preceding the expropriation of the land. Trees Trees lost Title holder Cash compensation based on type, age and productive value of affected trees plus 10%

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits premium Temporary acquisition Temporary acquisition PAP (whether owner, tenant, Cash compensation for any assets affected (e.g. boundary wall demolished, trees removed) or squatter) Loss of Livelihood Households living and/or working on the Rehabilitation Assistance Training assistance for those interested individuals for alternative income generating project area, including title holders/non- activities; providing employment opportunities on the construction site for the PAPs. title holders/daily laborers working in the market

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5.4. Valuation and Compensation for Loss and Resettlement Measures

The strategy adopted for compensation of the affected properties / assets follows the Federal Government and Regional Government laws and regulation as well as the project financier/WB’s requirements. The project affected peoples even if they are not displaced from their current location, they will be made to live in economically unviable situations because of loss of land, crop, assets and housing structures. Hence, in such situations PAPs will be offered full resettlement package Infrastructures and services affected by the construction works of the project need to be replaced or restored to its original level or in an improved manner. The compensation procedures and approach in this ARAP will adopt the following five steps presented here below.

i. Establishment of Property valuation committees: Woreda level property valuation committee is established at project implementation Woredas based on Proclamation no 455/2005. The property valuation committees will provide PAPs with details of compensation estimates, measurement of all affected assets and properties that PAPs will be losing. The compensation estimate and valuation will be reviewed by the resettlement/compensation committee prior to effecting compensation payment. ii. Assessment of properties and assets: All properties and assets affected by the project will be assessed at a full replacement cost, which is based on the present value of replacement. iii. Establishing unit rates: Unit rates are established for each of the expropriated assets and properties by the project. The unit rate is established for each of the affected properties and assets expropriated due line stringing and concrete pole foundation and erection civil works on the basis of current market value. iv. Final review of unit rates, those properties and assets to be affected: Final review of those properties and assets to be affected will be undertaken by the valuation and compensation committees that are established at each Woreda/district level prior to the commencement of the construction works. The valuation committee, in close consultation with PAPs and the resettlement committee will review and establish a new unit rate for the affected assets to be determined on the basis of market value. v. Payment of Compensation to PAPs: Compensation payment to PAPs will be effected after the property valuation committee makes the final estimate of compensation payable for the affected properties at a full replacement cost. Payment to affected properties and

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assets will be effected before the commencement of the construction works. The payment procedures and mechanisms to be adopted will be simple and easily understandable to PAPs. Compensation payment also addresses the following four questions.  What to compensate for (e.g. land, structures, businesses, fixed improvements or temporary impacts, lost income);  How to compensate;  When to compensate; and  Amount to be compensated

Compensation for land structures, business, fixed Improvements and other temporary impacts are based on among other things, on market valuation, production and productivity valuation, negotiated settlement, material land labor valuation, disposition of salvage materials and other fees paid. If relocation of business becomes necessary, access to customers and suppliers should be assured. In addition, workers losing employment in the process of relocating are entitled to transitional income support. Compensation for temporary impacts is calculated on the basis of the following criterion/principles;

. Compensation equivalent to loss income required for the duration of impact, . Compensation equivalent to lost income required for loss of access, and . Physical restoration of assets (or access).

In addition, PAPs are entitled to transitional assistance which include moving expenses, temporary residence (if necessary), employment training and income support while awaiting employment and should have an option for full replacement cost if duration of impact is to exceed two years. It should be noted that costs of construction vary from one locality to the other. PAPs that do not have license or legal permit and even squatters are eligible for compensation payment.

The basis for valuation is FDRE's Proclamation 455/2005 and Regulation No 135/2007 as well as, WB policy on involuntary resettlement. Valuation of affected assets and properties will be carried out by experienced and skilled valuators. Proclamation 455/2005, states that "The valuation of property situated on land to be expropriated shall be carried out by certified private or public institutions or individual consultants on the basis of valuation formula adopted at the national level."

In order to provide PAPs with adequate compensation for assets and properties they will be

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losing, proper valuation will be undertaken by the valuation committee and reviewed by the resettlement/compensation committee. The valuation committee, in close consultation with PAPs and in collaboration with resettlement/compensation committee will prepare unit rates for the affected assets to be determined on the basis of market value.

The proposed Distribution Rehabilitation and Upgrading Project in Diredawa does not require resettlement or relocation outside of their villages or Kebeles. Hence, there is no need of plan, which is prepared to provide or finance housing infrastructure and social services.

5.5. Cut-off Date for Determining Eligibility

Eligibility to receive compensation is usually established through a cut-off date. Affected people who are settled in the area prior to the cut-off date, usually the date of census, are eligible persons (EPs). People who settle in the project affected area after the cut-off date will not be considered for compensation. For this particular case the cut-off date is the date when the property compensation survey is completed.

The impact assessment and identification of PAPs was carried out between November 20 to November 30, 2016.During the survey, households were advised and encouraged to report and register residential/business facilities and their useful assets that are likely to be affected by the proposed project activities. PAPs were also informed the cut-off date for claims as November 30, 2016, the date the baseline survey and household asset inventory is completed. Any claim not reported and registered on or before the cutoff date will not be eligible for compensations and other forms of entitlements.

6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION

6.1. Public Consultation with Affected Communities, City and Kebele Administration

During the field assessment, various information dissemination and public consultations meetings were conducted with the affected communities including local community members, municipality and local Administration Officials.

Organizations that were consulted include: 03 Kebele Administration, 04 Kebele Administration, Environmental Protection Sector Offices, and Agricultural and Rural Development offices. By the process, 10 female and 19 male, totaling to 29 discussants took part in the consultation events in the respective Diredawa project sites.

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The assessment team has discussed the positive and negative impacts of the Distribution Rehabilitation and Upgrading Project with the project affected people (PAPs) and with local administration officials. On the positive side, the contribution of the project to socio- economic development of the country in general and the supply of reliable electricity to the surrounding area was discussed.

The need of relocating houses and shops that are within the safety corridor and the temporary impacts, corresponding mitigation measures, valuation and grievance redress mechanism were discussed during all the meetings.

Generally, communities’ attitude towards the project is positive and local officials have expressed their willingness to support the Project in every necessary way. Participants of the meetings agreed on the general principles of compensation payments and requested reasonable, sufficient and timely compensation payments for their lost assets.

Brief summary of the discussion is presented below:

 Explanation was given to PAPs on the nature of the Distribution Rehabilitation and Upgrading MV line that requires 2.5 meter distance for buildings from the concrete pole in any other direction. It is observed that buildings can be relocated in their respective premises. However, the owner of the houses and shops has the right to claim according to Proclamation No. 455/2005, Expropriation of Landholdings for Public purposes and Payment of Compensation proclamation. Accordingly, an urban land holder whose land holdings have been expropriated be provided a plot of urban land, the size of which shall be determined by the urban administration to be used for the construction of shops. However, there will be partial damage of houses and they are required to relocate outside the 2.5 meter in any direction for safety reasons, and there will not be any land expropriation in this project.  The Distribution Rehabilitation and Upgrading Project will greatly contribute to the country’s socio-economic development; the distribution line that passes through the cities will supply electric power to the area and this will benefit the surrounding communities greatly. Therefore PAPs strongly support the Project and express their willingness to cooperate in every way that is required from them.  Timely compensation payment to be effected before the construction starts. The project should pay full compensation before the commencement of physical construction.

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PAPs have also been informed that the Diredawa City Officials have the knowledge about the project.  PAPs were consulted briefly about cutoff date. The PAPs have underlined that the government has to follow proper and transparent compensation procedures for their resources to be lost and/or damaged, the project to prioritize employment for local community, compensation process will be completed before the construction starts.

Public Consultation at 03 Kebele

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Affected shops at 03 Kebele around GendeDipo

Affected houses

7. PROPOSED ASSISTANCE FOR PAPS

As indicated earlier, impact of the project is limited to relocation of houses and shops in their own premises. PAPs who shall relocate their houses and shops will be paid for their buildings. The amount of compensation for a building shall be determined on the basis of the current price per square meter in their respective city administration.

8. INSTITUTIONALRESPONSIBILITY

The Distribution Rehabilitation and Upgrading Project and local government administrations (City Administration and Kebele Authorities) will be responsible for the execution of the

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compensation payment operations. PAPs have been consulted on the compensation arrangements. Amount of cash compensation for the affected property will be presented to each entitled PAP for consideration and endorsement before cash payment.

On this basis, the project office should assign a team, responsible for the effective and efficient implementation of the compensation estimated as per the valuation methods/techniques employed.

The actors in the implementation phase and their roles include:

. EHS&Q Experts (planning and monitoring) . The project office (execution of compensation /rehabilitation) . Woreda administration and municipality (facilitating the process of payment of compensation, valuation and compensation committee meetings). . PAPs (endorsement of arrangements)

9. SOURCE OF BUDGET AND COST ESTIMATE

9.1. Source of Budget

EEP will allocate budget for the implementation of compensation payment for the expropriated property to be implemented by the Distribution Rehabilitation and Upgrading Project.

Once the budget is approved and transferred to the project account, the implementation will be undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimate of property is conducted by Property Valuation Committees, established in accordance with article 10 of Proclamation No. 455/2005. The Finance Division is responsible for processing the estimated fund and finally the compensation payment will be disbursed through the Project office.

The amount of compensation will be determined according to Proclamation No. 455/2005, Part three, and Article 7. The amount of compensation will be paid at a replacement cost and also taking into account World Bank requirements. All compensations will be effected before the line stringing.

The standard unit cost for the affected properties as to Diredawa town municipality is presented

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Type of Property to be affected Unit Cost/m2 (ETB) . Corrugated iron roofed and mud walled house per M2 1,300.00 . Corrugated iron roofed and brick/block walled house per M2 4,200.00

below in table 9.1:

9.2. Compensation Cost Estimate of Shops to be relocated

The total compensation cost estimate for affected houses and shops Birr 217,200.00(USD 9,670.52).

Diredawa City Administration compensation rates for loss of houses and shops are used for calculating the compensation cost estimates. Estimated size of the affected building per m2is multiplied by the unit price to get estimated compensation cost Further assistance such as transportation services for PAP’s properties and loading/ unloading costs during relocation will be provided by EEP for those families who need support.

Table 9-1Compensation Cost Estimate of Shops Type of Unit Quantity Impacted Unit Total Cost Total Cost Shops Area (M2) Cost/m2 (ETB) (USD) Affected (ETB) Corrugated Number 1 12 1,300.00 15,600.00 694.56 iron roofed and mud walled house Corrugated Number 2 36 4,200.00 151,200.00 6,731.96 iron roofed and brick/block walled houses Corrugated Number 2 12 4,200.00 50,400.00 2,243,98 iron roofed and brick/block walled shops Total 5 60 217,200 9,670.52

*Source: Diredawa City Administration (2016).

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Exchange Rate: 1 USD = 22.46 ETH. Birr (Commercial Bank of Ethiopia November 17, 2016).

9.3. Compensation Cost Breakdown for Affected Assets

The total compensation cost of the Project including monitoring is about Birr 326,920.00 (USD 14,555.65).The budget also includes internal monitoring cost.

Table 9-2Compensation Cost Breakdown for Affected Assets

Item for Compensation Unit Quantit Total Cost for Total Cost for y Compensation (Birr) Compensation in (USD) Total Shops to be relocated No. 2 50,400.00 2,243,98

Total houses to be relocated 3 166,800.00 7,426.00 Grievance redness, 50,0000.00 formation and orientation of the committee, log books and other costs

Monitoring cost 30,000.00 1,335.07 Sub Total 297,200.00 13,232.41 Contingency 10% 29,720.00 1,323.24 Total 326,920.00 14,555.65

10. RESETTLEMENT SCHEDULE

The implementation process is assumed to begin before the start of the construction and has to be completed before the construction starts. The starting point in this process is the establishment of both Resettlement Implementation Committee (RIC) and the Property Valuation Committee at Woreda level. The committees will be responsible for the smooth implementation of the ARAP. As to the prevailing ARAP, all the necessary steps have been taken in to account. Consultations/discussions have been held with the officials of Diredawa town municipality and other relevant stakeholders. Table 10-1 presents details of the activities along with aligned time frame.

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Table 10-1Resettlement Schedule

Activities Date Remark Establishment of RIC and Property Valuation Already established Committee Awareness Creation and Issuing of legal November, 2016 Notification for Compensation November, 20- November 30,20, Socio-economic survey and asset inventory 2016 Preparation of Draft ARAP November, 2016 Comment from stakeholders December 1-15,2016 Submission of final ARAP January, 2017 Implementation of ARAP February-March, 2017 Monitoring ARAP On-going over the project period

11. MONITORING/FOLLOW UP ACTIVITIES

Monitoring and evaluation are continuous process. EEP and 8 Cities Distribution Rehabilitation and Upgrading Project Office will be responsible for the overall supervision of the implementation of the ARAP. The monitoring and evaluation process should be an integral part of this ARAP and will be a device for overseeing the implementation of ARAP and the extent to which it complies with the recommendations set out in the ARAP. Lessons learnt from the monitoring and evaluation results will be used to enhance the preparation and implementation of future resettlement action plans.

The Actors in the monitoring and evaluation process include:

. The EHS& Q Social and Environmental experts of EEP. . Municipality and Kebele Administration (for monitoring and evaluation) . Project Affected Persons (PAPs)

Field visit by the Project office will be conducted at least once in a month. Municipalities and Kebele Administration will conduct their own monitoring, but when possible, this will be done

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together with Project office and EHS&Q experts.

The EEP management team will make the necessary follow-up to ensure that proper monitoring is being undertaken.

The monthly monitoring report prepared by Project implementation unit staff will be submitted to local authorities (Woreda and Municipality). A copy of this will be submitted to MEFCC and EEP management. It will also be enclosed in the construction progress reports of the supervising engineers.

12. EVALUATION

After completion of the resettlement/relocation operations, it is expected that PAPs will have a better or improved way of life compared to their previous situation. Therefore, relocation operations need to be monitored and evaluated to determine if PAPs have been able to re- establish their livelihood and living situation.

EEP will assign a qualified Sociologist/Social scientist to conduct individual evaluations of PAPs re-establishment socio-economic progress. This service aims at evaluating, and reporting on the level of living conditions and social services of the PAPs, both before and after the re- establishment. The evaluation will be done on quarterly and annual basis for two consecutive years.

The evaluation work will be carried out within 6-12 months after the relocation date

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ANNEX I:MINUTES OF MEETING

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;

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ANNEX II: PHOTOS

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ANNEX III: CONTACTED PERSONS

No Name Organization Job Title Address

1 Hassen Tahir Mayor & Cabinet Affairs Office Head 0915768469

2 Dr. AdugnaTafessie Mayor Office- Strategic Leadership unit Advisor 0915737819

3 Derarra Ibrahim Land dev’t& Management bureau Head 0915738296

4 Abdulkadir Usman Urban renewal Office Head 0915010635

5 AlemayehuMekonen Urban planning department Planner 0921162565

6 Tahir Zuber Urban planning department Head 0915004856

7 YonasBefekadu Environmental Protection Bureau Expert 0949836733

8 Tewodros H/Mariyam DD EEU-8towns project Engineer 0920264377