Resettlement Due Diligence Report

Project No.: 43141-044 March 2016

PNG: Civil Aviation Development and Investment Program- Tranche 3

Momote Airport Runway Extension & New Terminal Building, Manus, Manus Province

Prepared by the National Airport Corporation for the Asian Development Bank

This Due Diligence Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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

ACRONYMS AND ABBREVIATION ADB - Asian Development Bank AP - Affected Person ASL - Above Sea Level BoD - Board of Directors CAA - Civil Aviation Authority CADIP - Civil Aviation Development and Investment Program CLR - Community Liaison Officer DDR - Due Diligence Report DLO - District Lands Officer DLPP - Department of Lands and Physical Planning EA - Executing Agency EIA - Environmental Impact Assessment EMP - Environmental Management Plan GoPNG - Government of Papua New Guinea GRC - Grievance Redress Committee HH - households IA - Implementing Agency IP - Indigenous People IPP - Indigenous People’s Plan LDSA - Land Dispute Settlement Act LLG - Local Level Government MP - Manus Province MPA - Manus Provincial Administration NAC - National Airports Corporation NGO - Non-Government Organization PNG - Papua New Guinea PLO - Provincial Lands Officer PMU - Project Management Unit RP - Resettlement Plan SES - Socio-Economic Survey SP - Safeguards Policy SPS - Safeguards Policy Statement

Table of Contents

I. Outline for Momote Airport Due Diligence Report ...... 3 II. Background Information ...... 3 III. Proposed Upgrade Works ...... 4 IV. Description of affected ASSETS, crop/trees and people ...... 4 A. Affected Assets ...... 4 B. Crops and Trees ...... 4 C. Number of APs ...... 4 D. Involuntary Resettlement (IR) ...... 4 E. Indigenous People (IP) ...... 4 V. measures to minimise or mitigate land aquisiiton ...... 5 VI. Consultation, Disclosure and Grievance Redress ...... 5 a. Consultations with Affected Communities ...... 6 b. Disclosure ...... 6 c. Grievance Redress ...... 6 VII. Monitoring and Evaluation ...... 7 VIII. Overall Findings ...... 7 Appendix 1: schedule 1, civil aviation act 2000, national aerodromes ...... 8 Appendix 2: Community and Stakeholder Consultation...... 9

I. OUTLINE FOR MOMOTE AIRPORT DUE DILIGENCE REPORT

1. This is a Due Diligent Report (DDR) that reviews the Runway Extension, Pavement Upgrading, New Terminal Building & Associated Works proposed for the Momote Airport in Manus Province. It presents social safeguard aspects and social impacts assessment of the proposed works and mitigation measures at Momote airport.

II. BACKGROUND INFORMATION

2. Manus Province comprises approximately 2000 km2 islands to the far north of Papua New Guinea (PNG). It is the smallest province in the country, both in land area and population. Manus Island is the largest island in the province and is dominated by hills and the mountain peaks of Mt. Dremsel, Mt. Tapalow and Mt. Chayer. The coastal areas include limestone plains, swamps, and flood plains.

3. There is a causeway between Los Negros and Manus Island that connects the provincial airport at Momote to Lorengau. Rambutyo, Lou and Baluan islands southeast of Manus Is. have mountainous interiors surrounded by narrow limestone plains. Most of the remaining islands in the province are small raised coral limestone plains located close to Manus Is. Four groups of islands, however, are distant from Manus Is. The Aua-Wuvulu Islands are 400 km to the west, the Ninigo Group is 280 km to the west, the Hermit Islands are 170 km to the west, and the Kaniet Islands are 200 km to the northwest of Manus Island.

4. Manus Province is also unique in that it has only one district which is Manus. There are twelve local Level governments (LLG) which oversees 127 wards. The Momote airport is one of the main wartime airports that were used by the Americans during the Second World War (WW2). The Momote airport is located within the Los Negros Rural LLG.

5. A combination of approaches were employed to gather and compile information specifically to deal with the DDR as stated above and more generally to conduct project preparatory safeguards due diligence work, assess impacts on indigenous peoples, and evaluate involuntary resettlement options.

6. The runway has an asphalt surface measuring 1870-metre-long by 45 metre wide and a taxiway leading into the apron and the terminal area.

7. Momote Airport is situated at S 020 03’43.45” and E 1470 25’27.90” at an elevation of 4 metres ASL. It is located on flat plain with both ends of the runway ending near seaward. The substrate of the island is either directly volcanic or from uplifted coral limestone. The runway is built on a coronus material. Unpaved areas are covered with grass and scattered shrubs along the proposed fence line and wild pandanus species, and terrestrial mangrove species outside of the proposed fence line.

8. Adjacent to the terminal is the National Weather Service facilities and an abandoned shell depot that was used as aviation fuel service. The airport market is about 100 metres north-east from the terminal and Carpark area. The market is entirely dependent on the flights coming in and going out of Momote airport. NAC compound is located about 500 metres south-west opposite the terminal area. The nearest settlement is about a kilometer from the airport. Momote Airport’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line. Water supply through the terminal facilities is

only through tanks (collected rainwater).

9. Manus Township is called Lorengau which is approximately 20 kilometres from Momote airport. People travel between the town and the airport mainly through a sealed Momote-Lorengau Highway. People living around the nearby islands travel by boat. Average annual rainfall is 3,382 mm (133 in) and is somewhat seasonal, with June–August being the wettest months.

III. PROPOSED UPGRADE WORKS

10. The proposed airport redevelopment is designed to bring the facility to a level of development to fully meet international airport safety standards. The upgrading of Momote Airport is to facilitate a safety-compliant regional international airport suitable for F100 aircraft operations or equivalent.

11. Scope of works will mainly be the Supply and Installation of Hot Dip Galvanized Steel Palisade Fencing, Gates and accessories including associated earthworks and drainage works. In addition, a market with water tanks, public toilets and a security fence will be upgraded close to the terminal area.

IV. DESCRIPTION OF AFFECTED ASSETS, CROP/TREES AND PEOPLE

A. Affected Assets

12. All proposed civil works for the Project 2 Momote airport Fencing Project are within State owned land. There will be no affected assets or demolition of permanent residential structures or any displaced person or assets as stated in ADB’s Safeguard Policy Statement (2009).

B. Crops and Trees

13. There is no economical crop or useable trees within the Momote Airport land. The proposed land to be developed for runway extension is covered with grassland; and for the new terminal area is scattered shrubs and terrestrial mangrove trees which are of no use to people who already has trees in their own traditional land outside Momote airport boundary.

C. Number of APs

14. The project will concentrate within the Momote Airport boundary. Therefore, there is no AP to be accounted for in this project development.

D. Involuntary Resettlement (IR)

15. IR is not required since there will not be any affected person(s); displacement of people, assets and economical / food crops within the airport zone according to ADB’s Safeguard Policy Statement (2009).

E. Indigenous People (IP)

16. There is no direct impact on Indigenous People (IP) as defined in the ADB’s Safeguard Policy Statement (2009) hence there is no need for Indigenous People’s Plan (IPP). Generally,

the people around Momote Airport are homogenous and belong to wider ethnic groups in Manus that do not distinguish them as indigenous. The traditional villagers living outside the Momote Airport do not distinguish themselves as unique or peculiar nor separate from the main stream society in terms of language, culture or tribal obligations. They are regarded as Manus people and associated themselves to all other Manus Islanders without any distinct difference. This project will not directly affect them.

V. MEASURES TO MINIMISE OR MITIGATE LAND AQUISIITON

17. All scope of works shall be undertaken on aerodrome or State land and therefore there is no acquisition of land. Refer to annex 1 for the copy of Schedule 1 stipulated in the Civil Aviation Act 2000, showing list of national airports, including Momote airport, that NAC owns and has the obligatory right to improve, develop, maintain operate or manage.

18. In order to minimize and mitigate the need to acquire additional land and the impacts this can have on the communities within the vicinity of the airport, the CADIP has adopted various measures, including ensuring that the Momote Airport civil works conforms to these in the following:

a) The engineering design has minimized the need to have additional land to meet basic engineering safety requirements; b) Fencing will follow the declared aerodrome boundary basically replacing or aligning the existing fence line. c) Upgrading of the market is done within the NAC state owned land. d) NAC shall Liaise with the Provincial Administration to address land acquisition matters (if applicable) in timely manner.

VI. CONSULTATION, DISCLOSURE AND GRIEVANCE REDRESS

19. Consultation was done with two groups of people. The first consultation was between NAC, MPA and other relevant authorities. The second consultation activities were between NAC, and the local communities living nearby the Mt Hagen airport refer to table 1 below and photos of meetings in annex 2. The EA have consulted all parties from GoPNG, NAC, ADB, MPA and the nearby communities and in strong confidence of their support and the amount of information that is disseminated to the stakeholder/communities, well in advance prior to the implementation of CADIP tranches.

Tranche 3 Airport No. No. of consultation Date(s) of Remarks Project stakeholders’ with nearby consultation consultation communities Momote 4- 5 2 2013 - 2015 Refer annex 2 for pictures Table 1: Number of stakeholders’ and communities’ consultation between 2013 and 2015.

20. Main project related concerns raised by the nearby communities is for spin off benefits such as(i) first preference for employment opportunities under the project, (ii) subcontracting with the main contractor, (iii) local woman group participation, and (iii) contractor to extract gravel from their gravel site. Priority will be given to employing surrounding communities and locals including women where feasible during construction.

21. Civil Society Organization (CSO) and Non-Government Organization (NGO) will be engaged by NAC and the contractor to carry out awareness on HIV/AIDs and sexually transmitted diseases during construction. They will also be involved in awareness for communicable diseases to the surrounding town communities. NAC will also continue existing collaboration with CSO, NGOs to talk to mothers in regards to the utilization of the mini market to be established and NAC and CSOs will carry out awareness to the general public on Airport Safety Regulations.

a. Consultations with Affected Communities

21. On site investigation revealed that there is no anticipated or perceived problem for the communities with the installation of Momote airport security fence & associated Works. Since there is no displacement of people, the consultation was minimal and through Manus Provincial Administration and Town Authorities. CADIP will also make consultation with the communities living outside the Momote Airport through their local representatives to provide labour hire and also to inform the communities on increase in traffic when implementation works began.

b. Disclosure

22. To comply with ADB requirements, CADIP will publicly disclose the Due Diligence report following NAC and ADB approval. DDR and/or other information booklets will be made available in English, the official government language in Papua New Guinea, in a readily accessible location within the airport area. A summary brochure will also be prepared in Tok Pisin for distribution in the airport area.

23. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that a translator is provided, and translations of information materials are made available. This will be done in a manner to ensure full consultation with information disclosure to APs and communities on the policies and procedures of the NAC.

c. Grievance Redress

24. There is no displaced person for the Manus pavement upgrading works; hence it is not expected for major grievances to be brought forward, particularly on land acquisition matters. However, a grievance redress mechanism is in place for this Program, should the need arise.

25. CADIP with the support from the Manus Provincial Administration (MPA) will establish a Grievance Redress Committee (GRC) comprise of CADIP, MPA, Manus Town Authority (MTA), NAC, NGO and if need be a reputable community representative from the surrounding community. The grievance committee will ensure gender equality and allow for women representative.

26. In Papua New Guinea, the Land Disputes Settlement Act (LDSA) establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process will be established involving the Provincial Administration and its’ relevant personnel including appropriate local leaders or chiefs, community leaders as Community Liaison representatives (CLR). This person will be the first step for parties to clarify and mediate potential issues.

27. Issues brought to the designated mediator (CLR in this case) will be resolved within a timely manner. The mediator must meet with the disputing parties to resolve grievances between 2-14 days. Response will be in writing or through the CLR as feedback to be communicated back to the grieving parties.

VII. MONITORING AND EVALUATION

28. The internal monitoring mechanism of the NAC will monitor any unanticipated social safeguards impacts during implementation; and propose for corrective actions where necessary. The CADIP will monitor and measure the progress of implementation of environment and social safeguards and provide periodic monitoring and evaluation reports to ADB. CADIP will submit semi-annual safeguards monitoring reports and will document monitoring results, identify necessary corrective actions and reflect them in the corrective action plans to be implemented thus in compliance with ADB SPS (2009).

VIII. OVERALL FINDINGS

29. This sub-project will not cause any physical and economic displacements and all works will be undertaken within government-owned lands. A RP is therefore not required for this project. During the fieldwork consultations for Momote Airport, initial interviews with members of the Provincial Administration confirmed no asset, properties, crops, trees or people will be affected so no compensation is applicable. This sub-project will also not require an Indigenous Peoples Plan.

30. If there will be any persons to be physically and/or economically displaced following detailed engineering design, then a Resettlement Plan will be prepared. The scope of impacts and compensation and entitlement requirements will be assessed and consultation with affected persons will be undertaken. The CADIP adopts the principle that all compensation for affected assets will be paid at replacement cost based on current market prices. The office of the Valuer General will verify and approve (i) all compensation rates whether established through negotiation or according to GoPNG schedules and, for Momote Airport, (ii) the total amount of compensation to be paid.

31. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that a translator is provided to ensure the particular group has full understanding of safeguards requirements of the project and other pertinent issues such as NAC safety standards.

APPENDIX 1: SCHEDULE 1, CIVIL AVIATION ACT 2000, NATIONAL AERODROMES

APPENDIX 2: COMMUNITY AND STAKEHOLDER CONSULTATION.

A .

Photo A

Photo A & B: Tranche 3 Project awareness and meeting with the community leaders of communities surrounding Momote airport, Manus, Manus Province.

Photo C: Notice a local woman groups representative (in dark blue shirt and black hat sitting far back) participating in the discussions and decision making, 2015.

C .

Photo D: Tranche 3 Project meeting and discussion with the Mr. Andrew

Posong, Provincial Administrator, Manus, Manus Provincial Government (MPG), 2015