Project Background

Combined Indigenous Peoples Plan and Resettlement Plan

December 2012

NEP: SASEC Road Connectivity Project

East-West Highway–Koshi BridgeEast-West Highway Subproject

Prepared by Department of Roads for the Asian Development Bank. i

CURRENCY EQUIVALENTS (as of 10 December 2012) Currency unit – Nepalese rupee (NR) NR1.00 = $0.0114942529 $1.00 = NR87.000000

ABBREVIATIONS ADB – Asian Development Bank BMN – basic minimum need BPL – below poverty line CDC – Compensation Determination Committee CDO – Chief District Officer CoI – corridor of impact CSC – construction supervision consultant DAG – disadvantaged groups DAO – District Agriculture Office DDC – District Development Committee DFID – Department of International Development DFO – District Forest Office DLA – District Level Agencies DLRO – District Land Revenue Office DLSO – District Land Survey Office DP – displaced person EA – executing agency EM – entitlement matrix EWH – East-West Highway FGD – focus group discussion GDI – gender development index GESU – Geo-Environment and Social Unit GoN – Government of Nepal GRC – Grievance Redress Committee HDI – Human Development Index HH – household HPI – Human Poverty Index IEE – initial environmental examination LAO – land acquisition officer MHH – mid-hill highway MoPPWTM – Ministry of Physical Planning, Works & Transport Management NFIN – National Foundation of Indigenous Nationalities OM – operational manual PD – Project Director PIU – Project Implementation Unit PM – Project Manager PPTA – project preparation and technical assistance PSA – poverty and social analysis R&R – resettlement and rehabilitation RAP – resettlement action plan RCP – Road Connectivity Project RIP – Road Improvement Project RoW – right of way RP – resettlement plan SLC – Subproject Level Committee SPS – Safeguard Policy Statement, 2009 SRCP – SASEC Road Connectivity Project

SRO – Social and Resettlement Officer STEP – Subregional Transport Enhancement Project TOR – terms of reference TPPF – Transport Project Preparatory Facility VDC – Village Development Committee

WEIGHTS AND MEASURES ha – hectare kg – kilogram km – kilometer m meter sq. m. square meter

GLOSSARY

Acquisition – Acquisition of land and other assets for the purpose of development projects in accordance to prevailing Act (Land Acquisition Act 1977).

Affected – Households at large within the project influence area households Ailani Land – The land that does not to belong to any individual. As per the prevailing legal provisions, all the Ailani land belong to Government of Nepal and no one can transact and use such land without permission of the Government. Government of Nepal can reclaim Ailani land anytime for any purpose. As per the prevailing legal system, there is no provision of compensation for the occupiers/encroachers of the Government land. However, in development projects there is practice of compensating for the crops grown and structures constructed in Ailani if the dwellers and cultivators belong to vulnerable groups.

Bigha – Land measurement practiced in the southern plain area of the country, known as Terai. One Bigha is equivalent to about 6772.63 sq.m. There are other two sub-units under Bigha; Katha, and Dhur. One Kattha is about 336.63 sq.m. and one Dhur is about 16.93 sq.m. Twenty Dhur makes one Kattha, and twenty Kattha makes one Bigha.

Business – Structure constructed for business purpose Structure

Cadastral Map – Land record system in Nepal is based on cadastral mapping. It does not align with the topographical maps. Up-to 2028 VS (Nepali national date, which is approximately 57 years ahead than AD) cadastral maps used to be based on free sheet prepared based on manual field survey without reference of national grid. However, grid system in cadastral mapping has

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been started since 2028 VS. Based on information obtained from Topographical Survey Office, Ministry of land Reform and Management, till now 34 out of 75 districts have cadastral maps based on national grid and 38 districts still adopts free sheet 4 . However, even in such 38 districts, national grid based cadastral maps have been developed for municipality and district headquarter area, mostly in the Terai districts.

Chief District – The Chief Administrative Authority of the district. In Nepal, Officer (CDO) CDOs are assigned in all (75) districts. Among others, the responsibilities of the CDO also include managing and maintaining district administration, law and order situation, and implementing Land Acquisition and Resettlement Plan for Government and development projects to be implemented in the district.

Compensation – A formal representative body to be formed under the chair of Determination CDO as provisioned in Land Acquisition Act 1977. One of the Committee tasks of CDC is also to determine compensation rate for the (CDC) land and other assets to be acquired for development projects in the district. The other members to be involved in CDC includes representative from District Development Committee (DDC), District Land Revenue Office (DLRO) or District land Survey Office (DLSO), representative of the project, and representatives from District Level Agencies (DLA). There is also practice of involving two representative from project-affected families as observers.

Corridor of Minimum width of land required for the construction of roads Impact (COI) with the provision of shoulder width, side drain plus safety zone on either side of the road. COI is generally within the RoW.

Cut-off date – The Completion date of census survey to count the DPs and their affected business and assets. The Commonly known as untouchable in traditional Nepalese Ethnic – society. They belong to occupational and artisan group. Dalit Occupational Commission has defined dalit as, ―the community Caste Groups discriminated on the basis of caste and marginalized in terms (Dalit) of social, economic, educational, political and religious basis.‖

Dalits are further divided into different groups in accordance to socially prescribed occupations. For example, communities traditionally engaged in tailoring, or playing musical instruments, making shoes or communities involved in

4 Mechi Zone : Jhapa, Illam, Panchthar; Koshi Zone: Morang, and Sunsari; Janakpur Zone: Sarlahi, Mahottari, Dhanusha, Ramechhap, and Sindhuli; Narayani Zone: Rautahat, Bara, Parsa, Chitwan; Bagmati Zone: Kathmandu, Lalitpur, Bhaktapur, Dhading, Gandaki Zone: Tanahu; Dhaulagiri Zone: Myagdi, Mustang; Lumbini Zone: Nawalparasi, Kapulbastu; Rapti Zone: Dang; Bheri Zone: Banke, Bardiya, Surkhet; Karnali Zone: Jumla, Dolpa, Mugu, Humla; Seti Zone: Kailali;and Mahakali Zone: Kanchanpur and Dadeldhura

washing clothes, are given different family names in accordance to the type of traditional occupation they are involved with and they have their own social norms and taboos even within the dalits of different occupation.

Disadvantaged – Women, dalit, indigenous/ethnic people, Madhesi, other Groups (DAG) deprived people including poor farmer, labour and vulnerable groups (such as physically and mentally disabled persons, women, aged persons, landless labour, below poverty level households etc) are considered as Socially and Economically Disadvantaged Groups (DAG). The Interim Constitution of Nepal-2006 opens safeguarding and protecting provisions to such groups.

Displaced – In the context of involuntary resettlement, displaced persons persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/ or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of(i) involuntary acquisition of land, or ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

District – The district level administrative body existing in all (75) Development districts of the country to be represented by elected district Committee level political leaders. (DDC)

District Land – The Government body responsible for collecting land Revenue Office revenues, formalizing land transactions, updating and (DLRO) maintaining land ownership records, and determining Government rates for different types of land in the district based on the transaction rate used by public and transaction revenue paid to DLRO.

District Land – The Government body responsible for measurement, survey, Survey Office record keeping, managing, and updating land record and (DLSO) parcels by area in cadastral maps of the respective district.

District Level – District Level Agencies (DLA) are the Government offices Agencies (DLA) stationed at districts under different ministries of central level. District Land Revenue Office (DLRO), District Land Survey Office (DLSO), District Agriculture Office (DAO), District Forest Office (DFO) are some the district level agencies. One of the major tasks of DLA is to provide effective sectoral services in each administrative district in close coordination with regional or central level offices concerned.

Indigenous – Nepal indigenous/nationalities/tribal Act 2001 defines People (Aadibasi Ethnic/Indigenous People as; ―People having their own Janajati) mother tongue, distinct traditional values, and cultural identities, including social structure and written/non-written history are indigenous and nationalities population.‖ According to National Census 2001, in Nepal, there are 100 different social groups having over 92 languages representing 43 ethnic nationalities and covering 37.2% of the country's population. Further, the National Foundation of

Indigenous Nationalities (NFIN) has declared 59 groups as ethnic nationalities. NFIN has classified these groups into five categories 5 based on their population size and other Socioeconomic variables such as literacy, housing, land holdings, occupation, language, and area of residence.

A majority of ethnic/Indigenous people in Nepal is integrated into the mainstream and share common social, cultural, and economic value and opportunities. There is provision in the Interim Constitution of Nepal 2006 for the protection and development of disadvantaged Indigenous Peoples (IPs) or Adivasi/Janajati.

Temporary – Temporary business stall made of bamboo/wood/CGI fixing in Business the ground that need to be demolished for shifting Stall/Shed

Movable Kiosk – Small business structures made of wood/CGI/bamboo/mud- wall or any material that can be moved or shifted from one place to another without demolishing

Replacement – The open/fair market value of a project affected property to Cost be fixed by Compensation Determination Committee (CDC) in accordance to Land Acquisition Act 1977.

Resettlement – Resettlement denotes the consequence that may occur due to acquisition of land and other assets as well as the entire process and activities related to acquisition and implementation of Resettlement Plan (RP) in accordance to prevailing Acts.

Residential cum – Structure being used for both residential and business Commercial purposes. Structure

Residential – Structure being used for residential purpose only. Structure

Ropani – Ropani is the land measurement unit, officially practiced in hilly regions of the country. One Ropani of land is equivalent to approximately 508.74 sq. m. There are three sub-units under the measurement unit of "Ropani". They are; (a) Aana (31.80 sq.m.), (b) Paisa (7.49 sq.m.), and (c) Daam (1.99 sq.m.). Four Daam makes one Paisa; four Paisa makes one

5 (i) Endangered Groups: Bankariya, Kusunda, Khusbadia, Raute, Surel, Hayu, Raji, KIPSSan, Lepcha, Meche (10) groups, (ii) Highly marginalized Groups: Santhal, Jhangad, Chepang, Thami, Majhi, Bote, Dhanuk (Rajbansi), Lhomi (Singsawa), Thudamba, Siyar (Chumba), Barmu, Danwar (12 groups), (iii) Marginalized Groups: Sunwar, Tharu, Tamang, Bhujel, Kumal, Rajbansi (Koch), Gangai, Dhimal, Bhote, Darai, Tajpuriya, Pahari, Dhokpya (Topkegola), Dolpo, Free, Magal, Larke (Nupriba), Lhopa, Dura, Walung (20 groups), (iv) Disadvantaged Groups: Jirel, Tangbe (Tangbetani), Hylmo, Limbu, Yakkha, Rai, Chhantyal, Magar, Chhairotan, Tingaunle, Bahregaunle, Byansi, Gurung, Marphali Sherpa (15 groups), (v) Newar, Thakali (2 Groups).

Aana; and 16 Aana makes one Ropani.

Significantly – Person/households including vulnerable, encroachers/ Displaced/ squatters, having more than ten percent loss of their affected Person/ agricultural land, complete loss of residential structures, and Households business/ livelihood.

Temporary – Land acquired temporarily by contractors for access road or acquisition storing the construction materials or for other construction related purposes through a negotiation or contractors with the land owners ensuring compensation for a specified (temporary) period

Vikram Sambat – Vikram Sambat (V.S.) is followed as national year in Nepal, (V.S.) which is approximately 57 years ahead than A.D.

Vulnerable – Displaced households having: (i) significant resettlement Households impact, (ii) disabled member, (iii) single women headed households, (iv) independent elderly persons above 60 years of age, (v) landless laborers, wage earners and people living below the poverty line.

Ward – A cluster of settlements with certain number of households/population as determined by the Government. It is the lowest level administrative unit to be represented by elected local political leaders. As per the existing administrative system, each municipal local administrative area contains up-to 35 number of wards whereas it is only up-to 9 wards in the case of Village Development Committees (VDC).

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TABLE OF CONTENTS

EXECUTIVE SUMMARY x

I. PROJECT DESCRIPTION 1 A. General 1 B. The Subproject 3 C. Description of the Subproject Location 3 D. Benefits and Impacts 4 E. Project Components 6 F. Minimizing Resettlement Impacts 6 G. Scope and Objective of Resettlement Plan 7 H. Methods of Resettlement Impact Assessment Field Survey 7

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 10 A. Findings of Resettlement Census Survey 10 B. Scope of Land Acquisition 10 C. Information on Affected Land 13 D. Loss of Income Generating Assets 16 E. Loss of Structures 17 F. Resettlement Impact on Indigenous/Ethnic Peoples 27

III. SOCIOECONOMIC PROFILE AND INFORMATION 31 A. Profile of the Subproject Districts 31 B. The Subproject Location 34 C. Profile of the Displaced Households 36 D. Socio-Economic Profile of Displaced Indigenous People’s Households 45

IV. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 51 A. Consultation and Review 51 E. The Stakeholders 52 F. Public Consultation 52 G. Findings of the Public Consultation and Issues Discusses 54 H. Key Issues Raised During Social Consultation 55 I. Consultation and Dissemination with Indigenous People 63 J. Scope of Further Consultation 65 K. Disclosure of RP 65

V. GRIEVANCES REDRESS MECHANISM 66 A. General 66 L. Formation of Grievance Redress Committee 66 M. Operational Mechanism 67

VI. POLICY AND LEGAL FRAMEWORK 69 A. The Context 69 B. Land Acquisition Act 70 C. ADB’s Safeguard Policy Statement 70 D. Gaps between ADB and GON Resettlement Policy and Bridging Measures 71 E. Resettlement Principles and Assistance for the Proposed Project 73 F. Cut-off Date 73

VII. ENTITLEMENTS ASSISTANCE AND BENEFITS 74 A. Entitlement Policy and Matrix 74

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B. Compensations Provisions 74 C. Compensation for the Loss of Income Generating Assets 74 D. Additional Assistance to Vulnerable Groups 75 E. Livelihood Assistance and Skill Development Training 75 F. Temporary Employment in the Project 75 G. Compensation for the Loss of Residential/Commercial Structures 75 H. Loss of Cultural & Community Structures/Land/Facilities 76 I. Unanticipated Adverse Impacts 76 J. Relocation and Income Restoration 76

VIII. RELOCATION AND REHABILITATION 84 A. Need for Rehabilitation 84 B. Rehabilitation Strategy 84

IX. RESETTLEMENT BUDGET AND FINANCING PLAN 87 A. The Preliminary Valuation and Cost Estimate 87 B. Compensation for the Loss of Income Generating Assets 90 C. The Setup 96 D. The Executing Agency 96 E. The Project Implementation Unit 96 F. The Subproject Office 97 G. Construction Supervision Consultant 97

X. IMPLEMENTATION SCHEDULE AND ACTIVITIES 101 A. Implementation Schedule 101 B. Key RP Implementation Activities 101 C. Finalization of Resettlement Cost 103 D. Compensation Distribution and Deed Transfer 103 E. Management of Unclaimed Compensation 104 F. Time Duration for Compensation Distribution 104

XI. MONITORING AND REPORTING 105 A. Monitoring and Reporting Need 105 B. Monitoring in the Subproject 105 C. Reporting Requirements 109 D. ToR for External Monitoring and Budget 109

XII. COMPLEMENTARY RESETTLEMENT PLAN FOR KANCHANPUR MARKET AREA 110 A. Background 110 B. Socioeconomic Profile and Information 110 C. Socio-Economic Profile of Displaced Indigenous People’s Households 115 D. Occupational Status of Displaced Indigenous Population 116 E. Findings of Resettlement Census Survey 117 F. Loss of Structures 118 G. Resettlement Impact on Indigenous/Ethnic Peoples 124

LIST OF ANNEXES

Annex 1.1 : List of Affected Private Land - Sunsari Annex 1.2 : List of Affected Private Land - Udayapur Annex 1.3 : List of Affected Private Land - Saptari Annex 2.1 : List of Affected Private Structures – Sunsari Annex 2.2 : List of Affected Private Structures – Udayapur Annex 2.3 : List of Affected Private Structures – Saptari Annex 3.1 : List of Affected Public Land Annex 3.2 : List of Affected Public Structure Annex 4.1.1 to 4.2.3 : List of Affected Private Trees Annex 4.2.4 : List of affected Private Land Parcels and Owners (Kanchanpur Market Area) Annex 4.2.5 : List of Affected Private Fruit Trees of Saptari-EWH Road (Kanchanpur Market Area) Annex 4.2.6 : List of Affected Private Structures and Owner (Kanchanpur Market Area) Annex 4.2.7 : List of Affected Private Land of Rupnagar Bypass Section-EWH Road Annex 4.2.8 : List of Other Private Affected Structures (Kanchanpur Market Area) Annex 5.1 to 5.4 : List of Vulnerable Group Annex 6 : Consultation Matrix Annex 7 : Photographs Annex 8 : ToR for External Monitoring Agency Annex 9 : Sample of Cadastral Map of EWH - Road

EXECUTIVE SUMMARY

1. Project Description

1. The Project is funded by ADB and having two Parts A and B. The objective of Part A is to review the government’s Priority investment plan (2007 – 2016) for the development and management of strategic road network, discuss and identify with the department of Roads (DOR) about 900 Km of high priority road sections and carrying out combined feasibility study and detail engineering design, including minor structures and bridges which consist of: (i) appropriate condition surveys; (ii) engineering design, specifications, bill of quantities, cost estimates, and bidding documents for improvement works; (iii) economic analysis; (iv) social and environmental assessment; (v) bidding documents; and (vi) procurement assistance, among others.

2. Part B involves capacity strengthening in PPP preparatory work and implementation with the objective of establishing an enabling environment. This includes: PPP sector diagnostic and sector map – reviewing legal, regulatory, and policy frameworks, assess institutional structures, conducting stakeholder consultation, and clarifying sector strategy and road map; identify and prepare at least one small scale pilot PPP project – assessing and selecting PPP options, defining procurement and bid evaluation process, and preparing bid package. The EWH-Koshi Bridge-EWH (EE) 62.9 Asian Highway road has been incorporated for detailed design under this project

2. The Subproject Area and Impacts

3. Government of Nepal (GoN) has planned to develop an alternative access to link the Eastern Development Region (EDR) with the National Highway (East West Highway-EWH)) and other road network in case of breakdown of existing Kosi Barrage system (more than 40 years old). Accordingly, GoN under the ADB funded Emergency Flood Damage Rehabilitation Project (EFDRP), is constructing a new Kosi Bridge, approximately 20 km northeast from the existing Kosi Bridge. The bridge and the roads will together form an alternative route for a section of the EWH avoiding the present alignment over the Kosi Barrage. DoR, under the SRCP aims to improve this Subproject road as Asian Highway Grade II Standard with 30's Corridor of Impact (CoI).

4. Subproject road passes through 14 VDCs of Sunsari, Udayapur and Saptari districts. The Subproject road lies in eastern and western part of Kosi River. The Subproject road has existing alignment across the section except seven sections proposed for bypass (about 20 km).The existing alignment of eastern part from the Koshi River passes through two VDCs of Sunsari district and the western part traverses through five VDCs of Udayapur and seven VDCs of Saptari district. Improvement of the Subproject road will: (i) provide an alternative access to maintain intact link of the Eastern Development Region (EDR) with the National Highway (East West Highway-EWH) and other road network even in case of breakdown of existing Kosi Barrage system, and (ii) enhancing the socioeconomic conditions of the people in the Subproject locations. The zero chainage of the Subproject road starts at Nadaha (11.3 km of existing EWH towards North) of Bharaul VDC at Sunsari district located approximately 519 km east from Kathmandu and traverses through the settlements of Bharaul and Baraha Kshetra and links with the bridge approach of under constructed new Kosi Bridge. Then, the western part starts across the Kosi bridge and traverses through the settlements of Mainamaini, Thoksila, Basaha and Tapeshwari of Udayapur district and get connected with EW Highway at Rupnagar/Kasthamahal near Kanchanpur junction via Phattepur, Kamalpur, Dharampur, Ghoghanpur and Kanchanpur of Saptari district.

5. Department of Roads (DoR), under the SRCP aims to improve the Subproject road to a double lane road with Asian Highway Grade II Standard within 30 meter's Corridor of Impact (COI)7. The major activities to be carried out under the Subprojects includes: (i) earthworks for widening, formation raising, reshaping and grade adjustment; (ii) strengthening, resurfacing and partial reconstruction on existing sections and new construction on re-aligned sections, (iii) shoulder improvement and sealing of shoulder on hill side along the road, (iv) lining of side drains, improvement of existing natural drainage systems, culverts and causeways (including new construction), and side drains along main market fronts, (v) new retaining structures including repair/rehabilitation of existing ones; and (vi) landslide stabilization and slope protection activities. In addition, the Subproject component also include realignment (new alignment) of about 19.8 km road in different sections through bypasses.

3. Project Benefits and Impacts

6. Benefits. The proposed Subproject road is expected to enhance the linkage of eight VDCs with 21 key settlements and provides several direct benefits to the people .Construction of this road is expected to play a vital role on uplifting the socio-economic conditions of local people due to economic diversification in the district particularly in the Subproject locations. Some of the specific tangible benefits of the road improvement are mentioned below:

 Easy access to transportation facilities by reducing travel time and cost;  Increase in the scope of economic, and tourism related activities;  Increase in the scope of developing other infrastructure facilities;  Increase the value of land;  Economic diversification;  Employment opportunities to the local people during the construction phase

7. Negative Impacts. Based on the findings of census survey carried out in the month of July 2012 an estimated area of 52.7 ha of private land and 136.0 ha of Government land need to be acquired for implementing of the Subproject road which will affect about 1837 private land parcels owned by 1280 (only identified) households and displacing about 7062 persons. Acquisition of land for the Sub project also likely to affect 1245 numbers of structures. The total number of displaced households with persons of IP also includes in the below table due to impact on their structures. A summary on affected assets and displaced households is given in Table E.1.

Table E.1: Summary of Affected Assets and Displaced Persons

Number/ Description/Units Percentage/ Area Remarks Overall Summary Total Project Displaced Households (Number) 1964 (a) Of 1332 Census Total Project Affected Persons (Numbers) 7062 (b) HHs Average Family Size of the Displaced Households 5.30 Summary of Affected Land Total Private Land Getting Affected (Ha) 52.7 Total Government (Aailani)Land Getting Affected (Ha) 136.0 Total 188.7

7 The 20 m CoI considered for the road has been changed as 30 m by the detail design as advised by DoR to meet the Highway standard.

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Number/ Description/Units Percentage/ Area Remarks

Summary of Affected Structures

Residential Assets (Structures) 786 655 HHs

Commercial Only 93 88 HHs

Residential Cum Commercial 322 310 HHs

Rental 44 41 HHs

Total 1245 --

Summary of the Displaced Households by other Categories 2844 IP Households Being Displaced (Number) 556 (Persons) Other Vulnerable Group Households Being Displaced (Number) 260

Number of Affected Tenants -

Number of Affected Employees 57 Source: Census Survey, July 2012 [a] The total identified displaced households (1964 HHs) includes all the displaced households including the displaced indigenous and other vulnerable households having impact on their land, structures and other assets. However, the number of displaced households and persons may increase as the RP require further updating during the implementation phase as information from 632 households could not be obtained during the census survey

[b] The total number of displaced persons mentioned in the above table represents only 1332 households interviewed during the census survey

4. Measures Taken to Minimize the Impacts

8. The Government of Nepal (GoN) has legally fixed 50 meters Right of Way (RoW) for the highways. In this sense, the standard RoW of the Subproject road is also 50 meters. Based on that, being a part of the East West Highway the Subproject road requires 50 meters RoW. However, the Government policy and guidelines also suggest following most economical and practical way possible and making best use of appropriate technology while constructing/improving the roads. Accordingly, the technical design of the Subproject road was carried out based on the Government design standard by: (i) utilizing the existing alignment and (ii) acquiring land based on actual need for likely resettlement impacts and traffic safety. Collectively, the Subproject activities will be carried out along the existing road (except in bypass sections) with 15 m either side for widening, and construction works. For this the Subproject need to acquire only 18 meters additional land across the alignment.

5. Stakeholder Consultation and Participation

9. The key stakeholders consulted in the course of preparing this RP are; (i) officials at DoR, and Project Directorate (ADB) at central level; and (ii) Officials of DoR Divisional Office, District Land Survey Office (DLSO), District Land Revenue Office (DLRO), District Development Committee, District Administration Office (DAO). Similarly, local community,

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DPs and their family members, local leaders, VDC representatives, and other key persons were also consulted at the Subproject location.

10. The people contacted for stakeholder consultation were informed about project and likely resettlement impacts and mitigation measures. They were also informed about the (i) process of assessing and finalizing resettlement impact during the implementation phase, (ii) process of compensation determination in accordance to the Land Acquisition Act 1977 and provisions of compensation and other assistance to be made in the Entitlement Matrix. The stakeholders involved in the consultation were, local community, DPs with indigenous people and their family members, local representatives of political parties, school teachers, business persons, women, and vulnerable groups.

11. Similarly, series of meetings and consultations will also be carried out in collaboration with the relevant stakeholders (e.g. district level agencies, local communities, DPs and other agencies), during the RP implementation phase. Besides, as an approach of maintaining the RP preparation and implementation process transparent, and to ensure further active involvement of stakeholders during implementation phase project related information will be disseminated through disclosure of following RP documents from the Department of Roads:

6. Legal Framework

12. The resettlement principles adopted for this Subproject recognizes both, the Land Acquisition Act 1977, and ADB Safeguard Policy Statement (SPS) 2009 and Involuntary Resettlement Policy. The resettlement principles adopted in this project will provide compensation and resettlement assistance to all Displaced Persons (DPs) and their affected assets in accordance to Land Acquisition Act 1977 also considering other relevant Government Acts, policies and practices being adopted in the past and ongoing road projects.

7. Entitlements, Assistance and Benefits

13. This part reviews the policy framework that applies to the project. Land Acquisition Act (LAA) 1977, compatible with the ADB Safeguard Policy Statement 2009, guides the resettlement Plan (RP). According to The Land Acquisition Act 1977(B.S. 2034) if the Government of Nepal (GoN) or any party acquire portion of land of the public it should pay compensation or on the negotiation for public purposes and works. The RP provisions compensations to the DPs for all types of losses. In addition to the compensation for affected assets, the DPs will also receive other cash grants and resettlement assistance such as; shifting allowance, loss of workdays, income restoration, and additional financial assistance to the vulnerable DPs; such as household headed by women, households with disabled persons, elderly headed households, ethnic occupational caste (Dalits), and household living officially below poverty level. The DPs under the project will be compensated at full replacement cost based on current market price to be determined by Compensation Determination Committee (CDC). Resettlement Budget and Financing Plan

14. The total estimated RP implementation cost for the Subproject is NRs. 958,027,805.82 equivalent to US$ 10,861,993.26@ of exchange rate NRs. 88.20 per 1 US$ (Rate of July 20, 2012)- The RP implementation cost to be updated based on EWH-Kosibypass road . All cost required for compensation and RP implementation will be borne by the Government of Nepal. The estimated resettlement cost for the Subproject includes eligible compensation, resettlement assistance, and support cost for RP implementation. The cost estimate for compensation has been prepared based on the information about the likely resettlement impacts on different assets (land, structures etc) derived from the census survey. The rate for cost calculation is based on the Government rate subject to be finalized by Compensation Determination Committee (CDC) in accordance to Land Acquisition Act 1977.

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8. Grievance Redress Mechanism 15. With a view to likeliness of grievances during RP implementation, provision of constituting Grievance Redress Committee (GRC) has been made in the RP to cut down the lengthy litigation. The GRC to be coordinated by Project Manager (PM) as the Member Secretary supported by other members (to be nominated as needed) and representatives of DPs. In order to reduce the number and pressure of grievances at district level, the RP also ensures provision of forming Subproject Level Committee (SLC) to be represented by local level communities and DPs. The SLC is expected to resolve the general grievances at community level before formal submission to GRC.

9. Institutional Arrangement 16. The Ministry of Physical Planning, Works and Transport Management will be the Executing Agency (EA), and Department of Roads (DOR) will be the implementing agency (IA). A Project Implementation Unit (PIU) will be established at Project Directorate (ADB) under the DoR to take the responsibility of overall implementation of the Subproject. A Social / Resettlement Specialist (SRS) under the Construction Supervision Consultant (CSC) will be made responsible to support the PDs on the overall RP implementation mechanism and process. At the field level, a Subproject office will be established under the PIU, headed by Project Managers (PM) in the rank of Senior Divisional Engineer (SDE). The consultant SRS with the support of PIU and PM, CDC, GRC and local community will carry out all the RP implementation activities. He/she will be supported by PM in coordinating with the CDC and CDO in the matters related to compensation rate, resolving grievances, and monitoring of day- to-day RP implementation activities.

10. Implementation Schedule 17. As per the technical design, the Subproject is expected to be started from the first quarter of 2013 to the fourth quarter of 2014. The RP implementation timeframe will be scheduled based on the overall project implementation program. However, all the tasks of distributing compensation to the DPs and other rehabilitation/relocation assistance will be completed prior to mobilization of the contractors.

11. Monitoring and Reporting 18. Resettlement and Rehabilitation (R&R) activities implemented under the Subproject will be monitored internally as well as externally. Internal monitoring is the responsibility of Project Implementation Unit (PIU), and external monitoring will be conducted by an independent agency. Department of Roads will establish a quarterly monitoring and reporting system incorporating all aspects of land acquisition and resettlement activities.

12. Summary of Complementary Resttlement Plan For Kanchanpur Market Area 19. The detailed resettlement survey carried out across the Subproject section of market Area in September 2012-collected socio-economic information of the displaced persons and determined the number of displaced households and their affected assets. Based on the findings of census survey 1621 persons of 242 households are likely to be displaced due to impact on their 4.06 ha of private land and 242 numbers of structures. Table E.2 provides summary on the key resettlement impact of the Subproject road.

20. The total estimated RP implementation cost for the Subproject section of Kanchanpur market area is NRs. 136,301,624 equivalent to US$ 1545369.9 of exchange rate NRs.88.20 (July 20,2012)

Table E.2: Summary of Affected Assets and Displaced Persons

Number/ Description/Units Percentage/Area Remarks Overall Summary Total Project Displaced Households (Number) 268 Of 252 Census Total Project Affected Persons (Numbers) 1621 HHs Average Family Size of the Displaced Households 5.30 Summary of Affected Land Total Private Land Getting Affected (Ha) 4.06 ha

Total Government (Aailani)Land Getting Affected (Ha) 0 Total 4.06 Summary of Affected Structures Residential Assets (Structures) 127 107 Commercial Only 3 3 Residential Cum Commercial 47 45 Rental 46 39 Other Structures 19 18 Total 242 212 Summary of the Displaced Households by other Categories IP Households Being Displaced (Number) 9 45(Persons) Other Vulnerable Group Households Being Displaced (Number) 4 Number of Affected Tenants 2 Number of Affected Employees 7

I. PROJECT DESCRIPTION A. General 1. The Government of Nepal (the Government) had applied for a grant from the Asian Development Bank (ADB) for the Transport Project Preparatory Facility (the Facility) and applied a portion of proceeds to engage a firm of international consultants (the Consultant) to: (i) undertake preparatory activities for the processing of a new loan or grant projects for funding by ADB or other bilateral or multilateral development institutions; and (ii) provide capacity development support to prepare and implement PPP projects. Thus, the Project consists of two Parts: A and B. The objective of Part A is to review the government’s Priority investment plan (2007 – 2016) for the development and management of strategic road network, discuss and identify with the department of Roads (DOR) about 900 Km of high priority road sections and carrying out combined feasibility study and detail engineering design, including minor structures and bridges which consist of : (i) appropriate condition surveys; (ii) engineering design, specifications, bill of quantities, cost estimates, and bidding documents for improvement works; (iii) economic analysis; (iv) social and environmental assessment; (v) bidding documents; and (vi) procurement assistance; among others. 2. Part B involves capacity strengthening in PPP preparatory work and implementation with the objective of establishing an enabling environment. This includes: PPP sector diagnostic and sector map – reviewing legal, regulatory, and policy frameworks, assess institutional structures, conducting stakeholder consultation, and clarifying sector strategy and road map; identify and prepare at least one small scale pilot PPP project – assessing and selecting PPP options, defining procurement and bid evaluation process, and preparing bid package. 3. Consulting Services for Part A, which involves Preparation for Priority Roads Improvement Projects, has the following Phases  Detailed Survey and Design: about 300 Km  Feasibility Study and Detailed Survey & Design: about 200 Km  Feasibility Study: about 400 Km 4. Under the phase I, a total number of seven roads have been considered as high priority roads by DoR/ADB and included for detail survey and design. Feasibility studies of these roads were carried out under the PPTA 7411 NEP. Figure 1 indicates location of the seven roads selected for detail survey and descriptions of selected roads by length and type is given in Table 1.

Figure 1: Location of TPPF Subprojects

Table 1: Description of Roads Included in TPPF

S. Length Road Road Classification No. (Km) 1 Ramapur- Lumbini- Kakrahwa ( RK) 34.57 Feeder Road/Highway 2 Manthali- Ramechhap (MR) 13.35 Feeder road 3 Halesi-Diktel (HD) 35.43 Mid Hill Highway 4 Leguwaghat- Bhojpur (LB) 65.55 Mid Hill Highway 5 Lguwaghat- Tumlingtar (Savakhola) (LT) 24.63 Feeder Road 6 EWH-Koshi Bridge- EWH (EE) 62.90 Asian Highway 7 Mechipul- Chandragadhi- Birtamod (MB) 12.16 Feeder Road Note: Total length of 62.9 km includes; Nadaha (11+840) to kanchanpur (Rupnagar) 59.02km,. Alternate Trijuga Bridge Alignment 1.66 km and Kanchanpur Market area 2.22 km

5. The Department of Roads (DoR), SASEC Road Connectivity Project (SRCP) will be responsible for implementing the Resettlement Plan (RP) for its Subproject. As guided by the Terms of Reference (ToR) the resettlement plan prepared for the subproject during the feasibility phase have been updated and finalized under the TPPF.

B. The Subproject 6. The Government of Nepal (GoN) has planned to develop an alternative access to link the Eastern Development Region (EDR) with the National Highway (East West Highway- EWH)) and other road network in case of breakdown of existing (more than 40 years old) Kosi Barrage. Accordingly, GoN under the ADB funded Emergency Flood Damage Rehabilitation Project (EFDRP), is constructing a new Kosi Bridge, approximately 20 km northeast from the existing Kosi Bridge at EW Highway. The bridge and the roads will together form an alternative route for a section of the EWH avoiding the present alignment over the Kosi Barrage. DoR, under the SRCP aims to improve this Subproject road as Asian Highway Grade II Standard.

Figure 2: Alignment Route of East-West High Way Road

C. Description of the Subproject Location 7. There is an existing earthen road with about 12 meters average formation width across the section of the proposed alignment. The road section between Phattepur ( existing Trijuga River Bridge) and Kanchanpur the single lane paved road with 10-meter formation width) was constructed about 35 years back with road way(formation width) about 10m. The Subproject road traverses through 14 VDCs of 3 districts namely Sunsari (Bharaul and Barahachhetra), Udayapur (Mainamaini, Thoksila, Katunje Babala, Basaha, and Tapeswori) and Saptari (Phattepur, Kamalpur, Bhuwanpur, Piprapurba, Dharampur, Kanchanpur, and Rupnagar) districts in the Eastern Development Region (EDR) of Nepal. Of the total length, about 70% road section traverses along the agricultural land and forest. However, there are major clusters of settlement in some locations of the proposed alignment. The major settlements along the road section in the Subproject district are; Chataraghat, Kharkhola, Singhadevi tole Devisthan, Pipaldanda and Bhandaritar in Sunsari district, Kothu, Sombare,

Dimrebote Hattisude, Setikhola, Kamalbari, Rampur, Buddha Chowk, Gurungchouri, Galeni, Ghumne,Supade, Hattisar, Sanibare, Sabalitole, Namuna Chowk, Basaha, Sano Aambase, Thulo Aambase in in Udayapur district, and and Baldraha, Banadha, Bhangeni, Saradabasti Ganajali Nayabazar,Parsa, Saradhabasti, Bhangeni, Malet, Babiyatole, Baluwa, Bhangeni, Jamuwa, Baluwa, Jirapurba, Adarsha tole, Baluwa, Katuwa, Patlai, Kanchanpur and Rupnagar in Saptari district (Table 2).

Table 2: Key Locations Traversed by the Subproject Road District VDCs Ward Village/Settlement/Cluster No. 1.Bharaul No major settlements Sunsari 2.Barhachhetra (then Chataraghat, Kharkhola, Singhadevi tole 1,4,5 Chatara) Devisthan, Pipaldanda and Bhandaritar 1.Mainamaini 9 Kothu, Sombare Dumribote, Hattisunde, Setikhola, 2.Thoksila (Then 1,2,6,7,8 Kamalbari, Rampur, Buddhachock, Ratapani Thoksila) Gurungchauri, Galeni, Ghumne, Supade, Udayapur 3. Katunje Babala 7 No major settlements Hattisar, Sanibare, Sabalitole, Namuna 4.Basaha 5,6,7 Chock Basaha, 5.Tapeswori 8,9 Sano Aambase, Thulo Ambase Baldraha, Banadha, Bhangeni, 1 Phattepur (then, 1,2,3,4,7 Saradabasti Ganajali Nayabazar,Parsa, Bharuwakhal) ,8,9 Saradhabasti, 2 Kamalpur 6,7,8 Bhangeni, Malet, Saptari 3. Ghoghanpur 3,4,5 Babiyatole, Baluwa, Bhangeni, Jamuwa 4. Piparapurba 1 Baluwa, Jirapurba 5. Dharampur 1,2,3,6,7 Adarsha tole, Baluwa, Katuwa, Patlai 6. Kanchanpur 6,7,9 Kanchanpur 7. Rupnagar 7 Rupnagar Source: Census Survey, July 2012

D. Benefits and Impacts 1. The Beneficial Impacts 8. The major beneficial impacts of the Subproject road includes: (i) opening of alternative access to maintain intact link between the Eastern Development Region (EDR) and National Highway (East West Highway-EWH) even in the case of breakdown of existing Kosi Barrage system (more than 40 years old), and (ii) enhancement of the socioeconomic conditions in the Subproject locations. In addition, some of the other tangible benefits of the Subproject road improvement are:  Divert the traffic going from the existing EWH to north eastern and north western part of the country and enlarge the scope of economic activities along the Subproject locations;  Increase in the scope of developing other infrastructure facilities and economic activities in the Subproject locations;  Increase the value of land in the Subproject locations;  Economic diversification;  Employment opportunities to the local people during the construction phase. Some of the specific tangible benefits of the road improvement are:

2. The Negative Impacts 9. The road will constitute merger of existing roads/road sections and consideration of new alignments, and realignments of existing road(s) and their upgrading to provide alternate highway route with links between under construction Kosi Bridge (at Chatara) and EWH on either sides of Kosi barrage. Based on technical design, the average available width of the road is about 12 meter in the existing alignment section (about 43.31 km) and about 19.8 km of the Subproject will have realignment (new alignment) in different section (Table 3). Therefore, upgrading the road into Asian Highway Standard Grade II with 30 meters Corridor of Impact CoI) likely to have a significant resettlement impacts as most of the section of the proposed alignment passes along the agricultural land and also small settlements in some sections along. 10. Based on the findings of census survey, acquisition of land (52.7 ha) for the Subproject road likely to displace about 1964 households affecting on their land, structures and other assets. Of the total identified displaced household (1964 HHs), a total number of 1280 (65.17%) households are titleholders and the remaining 684 (34.83%) HHs are either absentees titleholders or the non-titleholders occupying Government/Ailani land for cultivation or residential purposes or for both purposes. Table 3 summarizes the description of displaced households and affected assets.

Table 3: Displaced HHs by Types of Affected Assets and Ownership Status

Affected Displaced Affected Affected Households Land Area Types of Titleholder Total Persons (From Private Having Impact on to be Affected Households Affected the Census Land Government/Aailani acquired Assets with Households Surveyed HHs Parcels Land and Structures (ha.) Verification i.e. 1332) (No.)

Land only 683 217 900 7,062 1,837 52.7 Land with structures 597 467 1,064 (b)

Total 1280 (a) 684 1964 7,062 1,837(c) 52.7 Source: Census July 2012 Note: (a)Total 1280 verified households holds 1541 (nos) land parcels. (b) The number of affected structures is 1245 owned by 1064 HHs (c) Of the total affected private land parcels (1837 parcels) a total number of 1541 land parcels owned by 1280 households were verified from the DLRO, during the census and verification of remaining 296 parcels could not be done due to lack of record in the DLSO. Thus, need to be verified during the implementation phase.

11. It is to be noted that information from the displaced households could be obtained only from 1332 (67.82%) households out of the total displaced households (1964 HHs) and the remaining 632 (32.18%) are absentees. The encroachers who have been holding the

Government/Aailani land and don’t have structure in the roadside were absentee. As they don’t have legal right on their land they were not interested to participate in the census survey. Further information on the interviewed displaced households and their affected assets have been discussed in succeeding sections.

E. Project Components 12. As per the technical design the section between Nadaha (Ch 11+840) to Existing Triyuga bridge at Phattepur (ch. 56+550 ) will have 30 meters CoI for 7 meters carriageway and 2.5 meters shoulders on both sides of the road). 13. Similarly, the CoI in between Phattepur bridge (ch 56+885) to the point of proposed bypass for Phattepur bazaar (ch. 57+710) will be limited to 8-10 meters on the width of existing road to minimize the resettlement impact in the market area. It is to be noted that this section was not considered by the technical design during the feasibility study a bypass for Phattepur bazaar (from ch 57+710) was proposed by the feasibility survey to link the Subproject road to the proposed new Triyuga bridge. As the proposed new Triyuga bridge has not been included in this project package this particular section between Phattepur bridge (ch 56+885) to the point of proposed bypass for Phattepur bazaar (ch. 57+710) including the existing single lane Triyuga bridge has also been considered as a part of Subproject road for the time being. 14. Likewise, the section in between the section of proposed bypass point for Phattepur bazaar (ch 57+710) to Rupnagar (ch 70+864.88) will also have 30 meters CoI for 7 meters carriageway and 2.5 meters shoulders on both sides of the road). 15. Additionally, the detail design also includes the provision of improving about 2 km section of existing Phattepur-Kanchapur road (from chainage 68+200 to Kanchanpur bazaar) as a part of the Subproject activities. However, the improvement works will be limited within the available width of existing road without acquiring any assets. The major activities to be carried out under this sub-project include: . Upgrading to two lane bituminous road . Minor widening; . Realignment/bypass for 19.8 km in different sections . Cross drainage structures and retaining structure; . Slope protection works; . Bio-engineering works; and . Road Furniture F. Minimizing Resettlement Impacts 16. The Government of Nepal (GoN) has legally fixed 50 meters Right of Way (RoW) for the highways. In this sense, the standard RoW of the Subproject road is also 50 meters. In this sense, being a part of the East West Highway the Subproject road requires 50 meters RoW. However, the Government policy and guidelines suggest following most economical and practical way possible and making best use of appropriate technology while constructing/improving the roads.11 Accordingly, the technical design of the Subproject road was carried out based on the Government design standard by: (i) utilizing the existing alignment and (ii) acquiring land based on actual need for likely resettlement impacts and traffic safety. Collectively, the Subproject activities will be carried out along the existing road

11 DoR; The Design Standards of Feeder Roads (Third Revision, GON, DoR, 1997)

(except in bypass sections) with 15 m either side for widening, and construction works by acquiring some 18 meters additional land across the alignment. G. Scope and Objective of Resettlement Plan 17. This RP has been updated based on the draft RP prepared during the PPTA by conducting detail census survey of the displaced persons and their affected assets along the corridor of Subproject road. The principal objective of this Resettlement Planning document is to plan measures for compensating, rehabilitating, and relocating (if applicable) to those who might be displaced due to resettlement impacts likely to be brought by the Subproject. Based on the finding of resettlement census carried out during the detail design, an estimated number of 7062 persons of 1964 households have been expected to have direct resettlement impact due to acquisition of land for the Subproject (Ref Table 1.3). However, the RP may require further updating during the implementation phase as information on some of the affected DPs having impact on their land and other assets could not be collected during the census as they were absent in the field location. Next, information on some of the affected land parcels yet to be updated from the DLRO in order to identify the real owner. In this sense, the number of displaced households and DPs likely to be further increased after final updating of RP during the implementation phase. H. Methods of Resettlement Impact Assessment Field Survey 18. Resettlement impact in the Subproject road has been finalized by conducting a detail census survey of the displaced households and their affected assets, and consultations with the stakeholder including the Displaced Persons (DPs) in different field locations during the month of July 2012. Some of the key stakeholders consulted during the field survey also include local community, family members of displaced households, local key informants, officials of relevant district level agencies like; District Land Survey Office (DLSO), District Land Revenue Office (DLRO), District Agricultural Office (DAO), District Forest Office (DFO), local political leaders, and representatives of local level institutions etc. The Resettlement Specialist, supported by Field Surveyor, Cadastral Surveyor and other team members conducted field survey in the Subproject location. One-day orientation was conducted to resettlement team in advance to the fieldwork for making them familiar with the objective and method of detail census survey and to train them on using the information collection tools (census questionnaire and inventories formats, socio-economic questionnaire, and checklists). The team with the guidance and intensive support from the Resettlement Specialist carried out field survey across the corridor of Subproject road to collect information on likely resettlement impacts on different assets and socio-economic information from the displaced households. 1. Cadastral Survey 19. Cadastral survey of the likely affected land parcels in fourteen VDCs of three districts was carried out under the supervision of Cadastral Surveyor from the respective District Land Survey Office. The project team first collected the relevant cadastral maps of the project area form the District Land Survey Office of Sunsari, Udayapur, and Saptari districts. Then they mapped out centerline of the road alignment and extreme edge on the cadastral maps based on the detailed engineering design. Again, the survey team took the marked cadastral maps to the field. The Cadastral Surveyor with the knowledge of engineering design identified upgrading requirements and likely areas of land to be acquired. The team pegged the alignment and impact boundaries and verified the affected land areas, structures, and other assets. The affected lands and other assets were determined at the site and the cadastral surveyors enumerated and measured other affected assets (e.g. structures, trees etc) within the premises of affected land parcels. The social survey team then collected the census related information from affected households.

2. Assets Inventory 20. Inventories of affected assets from the displaced households were prepared with the involvement of Resettlement Specialist, Field Surveyor, Cadastral Surveyors, Field Researcher, Enumerators, representative of DLSO and other concerned District Level Officials deputed in the field. Displaced households were also participated in the process. However, inventory of some affected land parcels (308 parcels of three districts) could not be officially verified, due to poor documentation and record keeping system of the respective DLRO and DLSO. Therefore, inventory of such affected land parcels need to be updated during the implementation. 3. Census Survey 21. Of the total innumerate displaced households (1964 HHs) a total of 1332 households (67.82% of the total affected HHs) could be identified and incorporated in census survey. Of the total displaced households (1964 HHs) information from the census survey could be collected only from 1332 (67.82%) households having 7062 displaced persons and the remaining 632 (32.18%) displaced households belongs to absentees. The encroachers who have been holding the Government/Aailani land and don’t have structure in the roadside were absentee. As they don’t have legal right on their land they were also not interested to participate in the census survey. Among the census households 865 (64.94%) households were titleholders and 467 (35.06%) were non-titleholders having impact on their structures (Table 4 )

Table 4: Interviewed Displaced HHs by Ownership Type on Affected Assets No. of Affected Affected Non- Total Affected Titleholder title Types of Interviewed Private Land Households Households Affected Assets Households Parcels of Interviewed Interviewed No Interviewed No. No. HHs Land only 249 0 249 925

Land with 616 467 1083 616 structures Total 865 467 1332 1541 Interviewed HHs Note:The number of displaced households and persons may increase as the RP require further updating during the implementation phase as information as information from 632 households could not be obtained during the census survey

22. As shown in the table above of the total 1332 interviewed households, 249 households have impact on their private agricultural land and 1083 households have impact on both land and structures. Of the total households having impact both on land and structures, 616 were titleholders and 467 were non-titleholders occupying Government/Ailani land for cultivation or residential or for both purposes. 4. Socio-economic Information of the Displaced Persons 23. Socio-economic information was also collected from the directly project affected households in order to assess the key socio-economic indicators like; sources of income and average annual income of the displaced households, vulnerability status of the households, issues related to resettlement impact in the households, and other relevant information and to solicit their suggestion.

5. Qualitative Information and Community Consultations 24. Qualitative socio-economic information such as; perception about the project, potential benefits and likely negative impacts (especially to vulnerable groups), likely resettlement issues, key issues related to women and children, and other local issues were also assed during the census survey. Such information were solicited through discussion with the family members of displaced households, local community, representative of local level institutions and political parties, and other key informants (e.g. VDC/ward representatives, significantly displaced persons, women, school teachers etc) individually or in groups.

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Findings of Resettlement Census Survey 25. The detail resettlement survey carried out across the Subproject section in July 2012- collected socio-economic information of the displaced persons and determined the number of displaced households and their affected assets. Based on the findings of census survey 7062 persons of 1332 households are likely to be displaced due to impact on their 52.7 ha of private land and 1245 numbers of structures. Table 5 provides summary on the key resettlement impact of the Subproject road.

Table 5: Summary on the Key Impact of the Subproject No of No. of Displaced Displaced Persons Affected Land Unit HHs

Total Private Land being Affected (Ha) 52.7 1280 7,062 Total Government/Aailani Land (Ha) 136.0 684 - Total 1,964(a) 7,062

Affected Structure Residential (Number) 786 655 3421 Commercial Only (Number) 93 88 493 Residence Cum Commercial 310 1633 322 (Number) Rental 44 41 241 Total 1,245 1,064 5,788

Source: Census Survey, July 2012 Note: [a] The total identified displaced households (1964 HHs) also includes displaced indigenous and other vulnerable households having impact on their land, structures and other assets. However, the number of displaced households and persons may increase as the RP require further updating during the implementation phase as information as information from 632 households could not be obtained during the census survey

26. As shown in the table above, of the total number of displaced households (1964 HHs) 1280 households have affect on their private land and remaining 684 households from Government/Aailani land. Likewise out of the total affected structure 1245 (nons), 786 (nons) hold by 655 households are residential, 93 (nons) hold by 88 households are commercial only, 322 (nons.) hold by 310 households are residence cum commercial, 44 (nons) hold by 41 households are rental. Details on displaced households and displaced persons by type of affected assets are given in above Table 5.

B. Scope of Land Acquisition 27. Department of Roads (DoR) aims to improve the Subproject road to the Standard of Asian Highway, Grade II with 30 meter's Corridor of Impact (CoI) by improving and widening the existing road and realigning about 20 km stretch through bypass in different sections. Based on the technical design, the average available width of the road in existing alignment section is about 12 meter except in bypass sections. In this sense, two types of acquisition is required for the improvement of this Subproject road; (i) acquisition of additional land along the existing road for widening, and (ii) fresh acquisition for new alignment/bypass .

28. Technically it requires an estimated area of 188.7 ha for the upgrading of 60.68 km road including (i)1.66 km long Alternate Trijuga Bride Alignment to the Asian Standard Highway Grade II (with 30 meter's CoI) and (ii) improvement of road along Kanchanpur Market area (2.2 km), where proposed CoI is limited to existing road limit. However, practically the actual estimated area of private land to be acquired for the road has been expected to be only about 52.7 ha. It is mainly due to the reasons that (i) there is existing earthen road across the proposed Subproject road (except in 19.8 km realignment section), and (ii) in most of the sections, Government/Ailani land is available along the existing road alignment (Table 7). Table 6 provides the summary of the available land and scope of further land acquisition for the Subproject road.

Table 6: Required Land and Available Government/Ailani Land for the Subproject Road

Acquisition Impact

Total No. of No of No. of Area of Required Private Land Government Displaced Displaced Displaced Government Land to be Land (ha) in Existing Land in Existing Private HHs Persons and Aailani Acquired Road (12 Road (12 Meter) Land Land (ha) (ha) Meter) (ha) (ha) parcels

188.7 101.16 4.8 30.04 52.7 1837 1964 7062

Source: Census July 2012 Notes: The number of displaced households and persons may increase as the RP require further updating during the implementation phase as information as information from 632 households could not be obtained during the census survey

29. As shown in the table above, the estimated 101.16 ha area of Government/Ailani land mostly concentrated in Sunsari and Udaiyapur districts and only a small area in Saptari district. A summary on the tentative area of available Government/Ailani land in different sections across the road alignment by chainage is included in Table 7 below.

Table 7: Road Sections having Government/Ailani Land Along the Corridor

Total Name of the Major From To Length Settlement in the Remarks (Km) Government Land Sunsari

11+840 17+580 5.740 Nadaha

18+450 18+900 0.450 Chatara

19+950 23+190 3.240 Pipaldanda, Chataraghat

Sub-Total 9.430

Udayapur 23+400 24+900 1.50 Khotho, Champur Sombae

Total Name of the Major From To Length Settlement in the Remarks (Km) Government Land 25+700 25+950 0.25 Sombare

26+650 28+200 1.55 Dumribote Bhanjyang,

28+450 30+850 2.40 Hattisude, Yalember chock

31+550 33+970 2.42 Jarayotar Khola, Kamala Bari

34+800 38+150 3.35 Buddhachock, Gurung chauri

40+000 40+450 0.45 Lal Bazaar

41+650 43+800 2.15 Galeni, Gummne

44+550 47+320 2.77 Supade, Deurali

48+800 50+200 1.40 Sanibare

52+900 53+800 0.90 Sabalitole

Sub-Total 19.140

Saptari 56+900 57+250 0.35 Phattepur Both Side Only in 58+100 58+900 0.80 Phattepur Right side Only in 59+600 60+800 1.20 Bhangeni Right side Only in 61+100 61+300 0.20 Siddhipur Right side Only in 61+300 63+900 2.60 Balarda Right side Sub-Total 5.15

Total 33.72

Source: Census Survey, July 2012

30. On the basis of above information, acquisition of 52.7 ha land for the Subproject road likely to affect approximately 1837 private land parcels displacing about 7062 persons of 1332 interviewed households from 1964 total displaced households. An inventory of the land parcels affected by the Subproject road is included in Annex 1.1 – 1.3.

31. Of the total identified household (1964 HHs) likely to have impact on their land and other assets, a total number of 1280 (65.17%) households are titleholders and the remaining 684 (34.83%) HHs are non-title holders occupying Government/Ailani land for cultivation or residential or for both purpose. 32. Based on the technical design, and verification ownership record of 1280 titleholders of affected households, estimated area of land to be acquired from each affected district, number of displaced household likely to have impact on their land, and number of affected land parcels by Subproject district is given in Table 8. According to this, the area of land to be acquired from Sunsari, Udayapur, and Saptari is 2.1ha, 30.6-ha, and 20.1-ha respectively. Similarly, the number of identified titleholder displaced households is 659, 572, and 49 in Saptari, Udayapur, and Sunsari district respectively (Table 8).

Table 8: Land Area to be Acquired by Subproject District and Estimated Affected Titleholder Households Number of Verified Area of Land Total Displaced HHs Existing Road to be Number of S. No. Districts Affected from Private Land Alignment Acquired Land Parcel Area (ha.) except the Non- (Ha.) titleholders 1 Sunsari 2.1 0.0 2.1 53 49

2 Udayapur 34.1 3.6 30.6 823 572

3 Saptari 21.3 1.2 20.1 961 659

Total 57.4 4.8 52.7 1837 1280

Source: Census Survey, July 2012

33. Acquisition of land for the Subproject also likely to affect altogether 1245 structures built in private land (597 structures) and Government/Ailani land (467 structures) owned by 1064 households (also see table 1.3 above) 34. However, of the total estimated households likely to be displaced (1964 HHs) only a total number of 1332 (67.82%) displaced households were identified and interviewed during the census and the remaining 632(32.18%) households were absentees. Even among the 1332, displaced household listed and included in the census survey, 865 are titleholder households and 467 are non title-holders households. The number of displaced households and DPs however, likely to be further increased after the final updating of RP during the implementation phase as 296 private land parcel could not be verified from DLRO during the census.

C. Information on Affected Land 1. Extent of Land Loss

35. Due to the prevailing unstable political situation of the country, in most of the cases, the displaced households in the Subproject locations were reluctant to disclose the fixed property and associated documents, like; additional land, and houses, owned by them. This is the reason that of the total displaced households verified during the census (1280 HHs); information on the area of land owned could be assessed only from 1541 number of land parcels. Next, the DPs were also found having fear that showing details on their properties may likely to increase the tax payable to the Government. Owing to this real picture, information on land lost could not be reflected from all the land parcels owned by the DPs. Therefore, the distribution of HH by proportion of land loss in the Subproject road could not be carried out in a desirable manner, however proportion of loss in the affected 1837 land parcels is calculated based on the total area of the same parcel, which is goining to be affected. 36. Of the total affected land parcels verified during the census about 24.8% (455-n) of the affected parcels have less than 10% land the remaining 75.2% affected land parcels have more than 10% loss. Among them, 17.5% (322-n) parcels have10-20% loss, 11.6% (213-n) affected parcels have 20-30% loss, 8.2% parcels (151-n) have 30-40 % loss and so on. Details on affected percent of land loss by affected land parcel are given in Table 9.

Table 9: Distribution of Households having Impact on Land by Percentage of Loss

40- <10 10- 20- 30- 50- 75- District VDC 50 NA Total % 20% 30% 40% 75% 100% %

Sunsari Barahakshetra 10 4 3 5 2 8 17 4 53

Mainamaini 11 5 1 2 0 2 2 2 25

Thoksila 123 91 59 35 18 23 25 59 433 Udayapur Basaha 66 31 20 10 11 13 12 58 221

Tapeshowri 31 22 17 10 6 9 12 37 144

Phattepur 50 55 40 44 30 44 66 70 399

Kamalpur 33 9 20 9 9 11 7 4 102

Ghoghanpur 43 39 13 10 4 4 11 3 127

Saptari Pipra Purba 15 8 3 2 1 0 2 3 34

Dharampur 64 54 33 21 6 12 22 46 258

Rupnagar 2 0 1 0 0 0 2 4 9

Kanchanpur 7 4 3 3 2 7 3 3 32

Total 455 322 213 151 89 133 181 293 1837

Percentage 24.8 17.5 11.6 8.2 4.8 7.2 9.9 16 100 Source: Census Survey July 2012 Note: ―NA‖ in the above table represents those parcels, which could not be verified from DLRO and DLSO.

2. Ownership Type of Affected Land 37. The census survey listed a total number of 1964 households as the likely to be displaced due to the Subproject’s impact. Among them 1280 displaced households having impact on their land are titleholders. The total 1280 displaced titleholder households include 683 household having impact on land only and 597 households also have impact both on their land and structures (see Table 9 above). The remaining 684 households are the non- titlers or the occupants of Government/Ailani. Among them 217 non-title displaced households have been using the occupied Government/Ailani land for cultivation purpose only and 467 non-titled displaced households also have structures on the Government/Ailani land (see table 1.3 above). While classifying the ownership type of affected land by districts about 1033 (52.60%) displaced households are in Udayapur district followed by 764 (38.90%) households in Saptari and 167 (8.50%) households in Sunsari districts. Among the Subproject district, the proportion of affected Government/Ailani land is significantly hight (23.48%) in Udayapur district compared to other Subproject districts. However, any official tenant associated with the affected land parcels could not be identified by the census survey. Table 10 provides breakdown on the ownership type of affected land by districts.

Table 10: Land Ownership Type of the Displaced Households

Titleholder Non –Titleholder Households having Households Having Total Displaced Affect on Private Affect on HHs S. No. Districts Land Government/Aailani Land

No. % No. % No. %

1 Sunsari 49 2.50 118 6.0 167 8.50

2 Udayapur 572 29.12 461 23.48 1033 52.60

3 Saptari 659 33.55 105 5.35 764 38.90 Total 1,280 65.17 684 34.83 1,964 100.00 Source: Census Survey July 2012

3. Verification Status of Affected Private Land Parcels 38. Out of 1332 displaced household interviewed during the census, land ownership record from the District Land Revenue Office (DLRO) could be verified for only 1541 parcels owned by 1280 households and the remaining land parcel (308) could not be verified (Table 11).

Table 11: Status of Displaced Household from Private Land and Verification Status

Total Number Total Verified Identified Number Unable to verify S. Districts of Land Land Parcel of Displaced HHs in DLRO (Land No. Parcel from DLRO from Private Land Parcel No.) 1 Sunsari 53 49 49 4 2 Udayapur 823 670 572 157 3 Saptari 961 822 659 147 Total 1,837 1,541 1,280 308 Source: Census Survey July 2012

4. Irrigation Facilities on Affected Land Parcels 39. Around 70% of the total affected land parcels having irrigation facilities. However, monsoon irrigated land for the paddy crops are also observed in the hill area during field survey. The following Table 12 shows the irrigation facility of affected land parcels.

Table 12: Irrigation Facilities on Affected Land Parcels

S.N. Description No % 1 Non-irrigated 551 29.99 2 Partially irrigated 1,286 70.01 Total 1,837 100.00 Source: Census Survey, July 2012

5. Quality of Affected Land 40. Land quality in Nepal has been classified into four categories (Abbal, Doyam, Sim and Chahar). According to Land Act (1964), the categorization of land is based on productivity and fertility for the purposes of collecting revenue and registration fee during transaction in accordance to the distinctive quality of land. Generally, Abbal means high

16 productive land, Doyam means medium quality land, Sim means lower quality land and Chahar means lowest quality land. Based on the census verification the land to be acquired for the Subproject (52.68ha) comes with different qualities of land. 13.29ha of Abal land will be acquired for this subproject road, followed by 0.31ha of Doyam, 21.1ha of Sim land, 6.59ha land of Chahar quality respectively. NA (11.36%) in the following table represent those parcels, which could not be verified from DLRO and DLSO. The land information indicated that majority of the landholders are going to lose small portion of land for this subproject. Table 13 below

Table 13: Quality of Affected Land (ha) Abbal Doyam Sim Chahar Total

District NA (High (Medium (Lower ( Less (ha) productive) Productive) productive) productive)

Sunsari 0.22 1.84 - - - 2.05 Udayapur 7.95 11.38 0.03 9.60 1.58 30.55 Saptari 3.20 0.08 0.28 11.50 5.02 20.08 Total 11.36 13.29 0.32 21.10 6.60 52.68 Source: Census Survey, July 2012

6. Present Use of Affected Land 41. The land affected by the Subproject is of different quality and used for several purposes. Table 14 classifies the area of affected land by quality. As shown in the table below 23.72 ha land being used for homestead followed by 22.35 ha land for low land and 6.59 ha for upland. Table 2.8 provides the details of the present use of affected land.

Table 14: Present Use of Affected Land

Homestead Land Low Land Upland Total S. Districts No No. No. Affected No. Affected Affected No. of Affected of of Area of Area (ha) Area(ha) Plot Area Plot Plot (ha) Plot 1 Sunsari 30 1.2068 15 0.3915 8 0.4532 53 2.0515

2 Udayapur 458 12.7077 244 11.7014 121 6.1390 823 30.6307

3 Saptari 654 9.8126 307 10.2658 0 0 961 20.1753

Total 1,150 23.7271 569 22.3587 129 6.5922 1,837 52.8575 Source: Census Survey, July 2012

D. Loss of Income Generating Assets 1. Loss of Agricultural Crops 42. Acquisition of land for the Subproject may also causes losses of standing crops. Based on the preliminary estimate, about 94742.03 kg of crops likely to be affected due to the project (Table 15). The estimated quantity of crops loss has been calculated based on

17 the area of land to be acquired, average quantity of major crops grown in the area based on the Government’s standard 12 . The Entitlement Matrix (EM: B-1(a & b) provisions of advance notification to DPs to harvest the standing crops to the cultivators and cash compensation in case of loss of such standing crops subject to be determined by CDC.

Table 15: Estimated Loss of Standing Crops Land to be Acquired Affected Agricultural Estimated Production (kg) (ha.) Land Area (ha) 52.7 28.59 94,742.03 Source: Census Survey, July 2012

2. Impact on Private Trees 43. Based on the inventory of affected assets there are 2128 private trees are going to be affected during the road construction. Out of 2128 trees, Saptari district alone is going to be lost 1754 trees as reported in the census survey. Udayapur district is losing 366 fruits trees; however, there is no impact on private trees in Sunsari district (Table 16). The details of the affected trees are presented in the Annex 4.1.1 - 4.2.3.

Table 16: Description of Affected Trees

Timber and S. No. Districts Fodder Fruit Total Fuel Wood

1 Sunsari 0 0 0 0 2 Udayapur 8 0 366 374 3 Saptari 472 211 1071 1754 Total 480 211 1,437 2,128 Source: Census Survey, July 2012

3. Loss of Tenancy on Affected Land 44. None of the affected land parcels have been found being cultivated by official/registered tenants/sharecroppers. But this should be verified during implementation of the subproject road.

E. Loss of Structures 45. The upgrading work in the Subproject road affects altogether twelve hundred forty- five (1245) structures owned by 1064 households. Further analysis of the affected structures has been incorporated in the following sub-sections and inventory of the affected structures have been incorporated in Annex 2.1 – 2.3.

1. Construction Type of Affected Structures by District 46. As table depicted below, altogether 1245 structures are likely to be affected. A total number of 674 different types of structures have been locating in Udayapur district, followed by 493 structures in Saptari district, 78 structures in Sunsari district respectively. By types 635 (nos) are semi modern, 301 (nos) Shed, 132 (nos) traditional, 123 (nos) modern, 4 (nos)

12 Statistical Information of Nepalese Agriculture 2007/2008, a publication of Ministry of Agriculture, Nepal & Selected Indicators of Nepalese Agriculture and Population, A brochures of the Ministry of Agriculture and Co- operatives, 2010 and consultation with relevant officers and the Ministry

18 households toilets respectively. Table 17 figures out the types of affected structures by districts.

Table 17: Types of Affected Structures by Districts

StructureType Sunsari Udayapur Saptari Total stone/brick wall with cement mortar/RCC 4 9 110 123 (Modern) stone mud mortar with slate/zinc sheet roof 17 496 122 635 (Semi-Modern) stone mud mortar with straw roof 6 78 48 132 (Traditional) Shed 0 91 210 301 bamboo bared and wood fenced (Tanti) 50 0 0 50

Toilet 1 0 3 4

Total Number of Structures 78 674 493 1,245

Total Affected Area (m2) 4,729 57,021 28,237 89,987 Source: Census Survey, July 2012 Legend: Traditional (stone mud mortar with straw roof)-1, Semi-modern (stone mud mortar with slate/zinc sheet roof)-2, Modern (stone/brick wall with cement mortar/RCC)-3, Hut-4, (Household Toilet)-5, Kiosks and Tanti (bamboo bared and wood fenced)-6

2. Ownership Type of the Affected Structures by Caste/Ethnicity 47. Of the total displaced households by affected structures, a majority of households 38.82% (n-413) belongs to Indigenous People (Janajati), followed by Hill Brahamin/Chhetri 34.40% (n-366, Ethnic Occupational Caste (Dalit) 13.35% (n-142) and Advantaged Janajati (Newar) 5.17% (n-55). The remaining households are Sanyasi 0.94% (n-10), Tarai Brahamin/Kayastha/Rajput 6.67% (n-71), Muslim 0.66% (n-7) respectively. Table 18 summarizes the ownership of affected structures by different caste/ethnic groups.

Table 18: Ownership of Affected Structures by Caste/Ethnicity

Sunsari Udayapur Saptari Total S.No. Caste/Ethnicity No. % No. % No. % No. %

1 Hill Brahamin/Chhetri 18 25.35 217 37.67 131 31.41 366 34.40 Ethnic Occupational 2 8 11.27 57 9.90 77 18.47 142 13.35 Caste Group (Dalit) Disadvantage 3 34 47.89 267 46.35 112 26.86 413 38.82 Janajati (IP) Advantaged Janajati 4 11 15.49 23 3.99 21 5.04 55 5.17 (Newar) 5 Syanyasi 0 0.00 10 1.74 0 0.00 10 0.94 Ethnic Minority 6 0 0.00 0 0.00 7 1.68 7 0.66 (Muslim)

Tarai 7 Brahamin/Kayastha/ 0 0.00 2 0.35 69 16.55 71 6.67 Rajput Total 71 100.00 576 100.0 417 100.00 1064 100.00

Source: Census Survey, July 2012

3. Extent of Loss of Affected Structures 48. The census data reveals that out of 1245 affected structures 97.0% (n-1208) are going to be affected fully, whereas 3% (n-37) are only partially affected. All of the affected structures/houses have impact on the main structure and are traditional and semi modern by construction type. Therefore, all of them will have complete loss and would not be eligible to leave in the future Table 19 figures out the types of affected structures and the extent of loss by VDC and type of use.

Table 19: Extent of Loss of Affected Structures by VDC/District and Type of Use Commercial Residential Commercial cum Rental Structure Only

Residential

District VDC Total

Total Total Total Total

Fully Loss Fully Loss Fully Loss Fully Loss Fully

Partially Loss Partially Loss Partially Loss Partially Loss Partially Barahakshetr Sunsari 0 50 50 0 2 2 0 20 20 1 5 6 78 a Mainamaini 0 13 13 0 0 0 0 7 7 0 0 0 20

Thoksila 6 395 401 0 9 9 1 116 117 0 0 0 527 Udayapur Basaha 0 50 50 0 1 1 0 26 26 0 0 0 77

Tapeshowri 0 39 39 0 1 1 0 10 10 0 0 0 50

Phattepur 0 100 100 0 49 49 0 126 126 0 4 4 279

Kamalpur 10 65 75 3 14 17 1 4 5 1 5 6 103

Saptari Ghoghanpur 10 9 19 2 4 6 1 5 6 0 0 0 31

Pipra Purba 0 7 7 0 3 3 0 1 1 0 0 0 11

Dharampur 1 31 32 0 5 5 0 4 4 0 28 28 69

Total 27 759 786 5 88 93 3 319 322 2 42 44 1245 Source: Census Survey, July 2012

4. Extent of Loss on Structures by Caste and Ethnicity 49. As information reveals from the census survey, of the total affected structures (n-78) including all types in Sunsari District, 74 are going to be fully affected and remaining 1 rented structure is going to be partially affected. Among the 78 likely to be affected structures, 38 nos belongs to Disadvantage Janajati (IPs), followed by 19 belongs to Hill Brahamin/Chhetri, 8 nos belongs to Ethnic Occupational Caste (Dalit), 13 nos belongs to Advantage Janajati (Newar) respectively. Moreover, of the total affected structures (n-674) including all types in

Udayapur District, 7 nos of structures will be affected partially whereas, all the remaining structures are going to be fully affected. Among the 674 nos of likely to be affected structures, 306 nos belongs to Disadvantage Janajati (IPs), followed by 262 belongs to Hill Brahamin/Chhetri, 70 nos belongs to Ethnic Occupational Caste (Dalit), 24 nos belongs to Advantage Janajati (Newar), 10 nos belongs to Sanyasi, 2 nos belongs to Terai Brahmin/Chhetri/Kayastha respectively. In Saptari district, of the total (493) structures likely to be affected, 37 nos of structures are going to be partially affected and remaining are fully affected. Out of 493 nos of affected structures, 130 nos belongs to Disadvantage Janajati (IPs), followed by 154 belongs to Hill Brahamin/Chhetri, 97 nos belongs to Ethnic Occupational Caste (Dalit), 27 nos belongs to Advantage Janajati (Newar), 8 nos belongs to Ethnic Minority (Muslim), 77 nos belongs to Terai Brahmin/Chhetri/Kayastha respectively. Table 20 figures out the extent of Loss of Affected Structures by Caste and Ethnicity.

Table 20: Extent of Loss of Affected Structures by Caste and Ethnicity

Residential Commercial Residential Cum Rented Only

Commercial Total

Structure

District Caste / Ethnicity

Total

Loss Loss Loss

Loss

Total Total Total

Partially Partially Partially Partially

Partially Partially

Fully Loss Fully Loss Fully Loss Fully Loss Fully Hill Brahmin/Chhetri 0 9 9 0 0 0 0 7 7 1 2 3 19 Ethnic Occupational 0 6 6 0 0 0 0 2 2 0 0 0 8 Caste (Dalit) Disadvantage Janajati 0 26 26 0 1 1 0 8 8 0 3 3 38 (IPs)

Sunsari Advantaged Janajati 0 9 9 0 1 1 0 3 3 0 0 0 13 (Newar) Sub-total 0 50 50 0 2 2 0 20 20 1 5 6 78

Hill Brahmin/Chhetri 1 188 189 0 4 4 1 68 69 0 0 0 262 Ethnic Occupational 0 52 52 0 4 4 0 14 14 0 0 0 70 Caste Disadvantage Janajati 3 232 235 0 3 3 0 68 68 0 0 0 306 (IPs) Newar ( Advantaged 2 16 18 0 0 0 0 6 6 0 0 0 24 Janajati)

Udayapur Syanyasi 0 8 8 0 0 0 0 2 2 0 0 0 10 Terai Brahmin/Kayastha/Raj 0 1 1 0 0 0 0 1 1 0 0 0 2 put Sub-total 6 497 503 0 11 11 1 159 160 0 0 0 674

Hill Brahmin/Chhetri 6 73 79 3 18 21 1 43 44 0 10 10 154

Ethnic Occupational 1 54 55 0 8 8 0 23 23 0 11 11 97 Caste Disadvantage Janajati 9 55 64 2 23 25 1 29 30 1 10 11 130 Saptari (IPs) Newar ( Advantaged 3 8 11 0 1 1 0 14 14 0 1 1 27 Janajati)

Residential Commercial Residential Cum Rented Only

Commercial Total

Structure

District Caste / Ethnicity

Total

Loss Loss Loss

Loss

Total Total Total

Partially Partially Partially Partially

Partially Partially

Fully Loss Fully Loss Fully Loss Fully Loss Fully Muslim 0 2 2 0 3 3 0 1 1 0 2 2 8 Terai Brahmin/Kayastha/Raj 2 20 22 0 22 22 0 30 30 0 3 3 77 put Sub-total 21 212 233 5 75 80 2 140 142 1 37 38 493 124 Total 27 759 786 5 88 93 3 319 322 2 42 44 5 Source: Census Survey, July 201

5. Present Use of Affected Structures 50. The census data indicates that all together 1245 number of different types of structures of 1064 households is likely to be affected. By category of use, 786 residential structures owned by 655 households are going to be affected, followed by 322 commercial cum residential structures owned by 310 households, 93 commercial structures owned by 88 households and 44 rented structures owned by 41 households among the total structures (1245nos). Thoksila VDC of Udayapur districts has significant impact on all types of structures (n-527), likewise Phattepur VDC of Saptari district has second highest impacts (n-279) on all types of structures and the Kamalpur VDC is in the third position of structural implacts of all types (n-103). The following Table 21 provides the details of the types of affected structures by VDC/District and types of use.

Table 21: Distribution of Affected Structures by VDC/District and Type of Use Commercial Residential Commercial Rented out cum Structures Only Structures

Residential

District VDC

HHs HHs HHs HHs

Structure Structure Structure Structure

Numberof Numberof Numberof Numberof

Population Population Population Population

Barahakshetra 50 48 259 2 2 11 20 19 103 6 5 27 Sunsari

Mainamaini 13 12 60 0 0 0 7 7 35 0 0 0 164 Thoksila 401 328 9 7 35 117 115 575 0 0 0 0

Basaha 50 46 207 1 1 5 26 24 108 0 0 0 Udayapur Tapeshowri 39 33 175 1 1 5 10 10 53 0 0 0

Phattepur 100 88 493 49 46 258 126 119 666 4 4 22 Kamalpur 75 56 330 17 17 100 5 5 30 6 6 35

Saptari Ghoghanpur 19 15 86 6 6 34 6 6 34 0 0 0

Commercial Residential Commercial Rented out cum Structures Only Structures

Residential

District VDC

HHs HHs HHs HHs

Structure Structure Structure Structure

Numberof Numberof Numberof Numberof

Population Population Population Population Pipra Purba 7 4 21 3 3 16 1 1 5 0 0 0 Dharampur 32 25 150 5 5 30 4 4 24 28 26 156 Total 786 655 3421 93 88 493 322 310 1633 44 41 241 Source: Census Survey, July 2012

6. Present Use and Ownership of the Affected Structures by Type

51. Of the total different types of affected structures (n-1245), 721 are found constructed in the private land, whereas 524 are constructed in the government/ailani land. Out of 1245 affected structures, Sunari district holds 78 nos of different types of affected structures, followed by Udayapur district hold 674 nos of affected structures. Saptari district holds 493 nos of affected structures respectively. As the information reveals from the census survey, out of 78 nos of likely to be affected structures in Sunsari district, 50 nos are residential, followed by 20 nos are commercial cum residential, 6 nos are rented, 2 nos are commercial only by type of use respectively. Out of 674 affected structures in Udayapur district, 503 nos are residential, followed by 160 nos are commercial cum residential, 11 nos are commercial only by type of use respectively. Moreover, Saptari district holds 493 nos of different types of affected structures, out of which 233 nos are residential, followed by 142 nos are commercial cum residential, 80 nos are commercial and 38 nos are rented respectively. Table 22 provides the details of the present use and ownership of the affected structures.

Table 22: Present Use and Ownership of the Affected Structures by Type

Constructed Constructed in Total District Present Use in Private Government/Ailani Affected Land (No) Land (No) Structures

3 47 50 Residential Only Commercial only 0 2 2 Sunsari Commercial cum 1 19 20 Residential Rent 0 6 6

Sub-Total 4 74 78

Residential Only 223 280 503

Udayapur Commercial only 9 2 11 Commercial cum 98 62 160 Residential Sub-Total 330 344 674

Residential Only 171 62 233 Saptari Commercial only 49 31 80

Constructed Constructed in Total District Present Use in Private Government/Ailani Affected Land (No) Land (No) Structures Commercial cum 135 7 142 Residential Rent 32 6 38

Sub-Total 387 106 493

721 524 1245 Total Source: Census Survey, July 2012

7. Types of Business and Other Enterprises Operated in Non-residential Structures 52. The affected both residential and residential cum commercial structures have been used by the title owners for residential purpose and residential cum business purposes. However, several business and income generating activities have been carried out in these commercial and commercial cum residential structures. Table 23 summarizes the types of business and other enterprises being operated in such structures.

Table 23: Types of Business and Other Enterprises Operated in Non-residential Structures Commercial Commercial S. No. Business Type cum Rental Total Only Residential 1 Cloths Shops 2 26 0 28 2 Hotels/ Restaurants 0 20 0 20 3 Grocery Shop 26 135 3 164 4 Gold Shop 2 11 0 13 5 Tailoring Shop 3 14 0 17 6 Hardware shop 0 5 0 5 7 Tea Shops 5 49 1 55 8 Tea Shop/Grocery 0 13 0 13 9 Boarding School 0 2 0 2 Photo Studio/Gift 10 1 11 0 12 Shop/Photocopy 11 Fruits 1 2 0 3 12 Vegetables 0 1 0 1 Mobile/Electronic 13 0 4 0 4 Shop 14 Medical Shop 3 19 0 22 15 Utensil Shop 4 12 0 16 16 Workshop 1 8 0 9 17 Meat Shop 0 9 0 9 18 Poultry Form 1 2 0 3

Commercial Commercial S. No. Business Type cum Rental Total Only Residential 19 Film Hall 1 0 0 1 20 Beauty Parlor 1 0 0 1 21 Agrovet 1 4 0 5 22 Bike Showroom 1 2 0 3 23 Galla/Rice Mill 0 1 0 1 24 Furniture Shop 0 7 0 7 25 Stationary 0 4 0 4 26 Money Transfer 0 1 0 1 27 Hospital 0 1 0 1 28 Band Baja Shop 1 0 0 1 Total 54 363 4 421 Source: Census Survey, June 2012 8. Loss of Employment 53. Impacts on commercial and residential cum commercial structures are likely to affect on 57 employees associated with such structures working in the hotels operated in affected commercial structures. As per the findings of census survey, the estimated days of employment loose is about 90 days and the average loss amount is NRs. 5000 per persons per month. (Table 24).

Table 24: Use of Affected Commercial and Residential Structures by Purpose No. of Transitional Total Man S.No Types of Business Employee Period (Days) days 1 Rice Mill 7 90 630 2 Tailor 3 90 270 3 Gold Shop 3 90 270 4 Boarding School 4 90 360 5 Hardware shop 5 90 450 6 Moter Workshop 9 90 810 Color Lab/ Photo 7 Studio 6 90 540 8 Saloon 2 90 180 9 Film Hall 2 90 180 10 Medical/Hospital 5 90 450 11 Hotels/Restaurants 5 90 450 12 IME 1 90 90 13 Poultry Farm 2 90 180 14 Mobile Shop 3 90 270 Total 57 90 5,130 Source: Census Survey, June 2012

9. Affected Structures by Other Vulnerable Households 54. 51 out of 1245 affected structures belong to different type of vulnerable households. 12 structures out of 51 belongs to women headed households, followed by 1 household with disable member, 12 elderly member headed households, 26 below poverty level households respectively. (Table 25). Details of other vulnerable households having impact on their structure is included in Annex 5.1 – 5.4.

Table 25: Affected Structures Owned by Vulnerable Households Households Women Elderly Member Below Poverty Total with District Headed Headed Level House Disabled Households Households Households[1] hold Members Sunsari 4 1 0 0 5 Udayapur 8 11 1 26 46 Saptari 0 0 0 0 0 Total 12 12 1 26 51 Source: Census Survey, July 2012

10. Relocation and Rehabilitation of the Displaced Households 55. Based on the consultation with the displaced persons, households likely to have complete loss of their structures have opted for compensation and other assistance to relocate/ rehabilitate their displaced structures. The entitlement matrix of the resettlement plan have provisioned cash compensation to the households displaced due to loss of their structures (both titleholders and vulnerable squatters) based on current market value to be fixed by the CDC [EM: C-1 (a)] and [EM: C-2 (a)]. Owners of the affected structures will be allowed to take/reuse all the salvageable materials for rebuilding/rehabilitation of the structures without any deduction from the compensation amount, For those requiring rebuilding/ rehabilitation, will also be paid two months local agricultural wage for rebuilding/rehabilitation of structures plus transport allowance to cover the cost for moving structures including load-offload cost. The vulnerable squatters will also be paid for the loss of structures and transport allowance but they will not be eligible for the loss of land [EM: C- 1 (c)]. Similarly, The renters/tenants of the affected commercial and residential/commercial structures will be provided one month's rental financial assistance for moving to alternative premise for reestablishing their home/business plus transfer allowance to cover the cost of shifting [EM: C-3 (a & b)] 11. Loss of Community Property Resources 56. All the efforts were made during the detail design to minimize resettlement impact on the community property resources. In this approach, some of the public utilities like drinking water supply systems, irrigation canals, temples, rest places etc have been saved through consultation with the local community. However, impact on some of such community assets could not be avoided like; Bhagawati Mandir of Pipaldanda of Barahakshetra VDC, Flood Control Hydraulic Awa Ghar-Chataraghat cluster of Mainamaini VDC, Community School- Dumrebot cluster of Thoksila VDC, Mandir-Rampur cluster of Thoksila VDC, Church- Sanibare cluster of Basaha VDC, Temple-Aambani cluster of Tapeswori VDC, Hanuman Mandir-Phattepur. These community properties need to be relocated during the implementation phase in close coordination and collaboration with the local community. The resettlement plan ensures budget to relocate to such community resources. The following Table 26 provides the details of loss of community property resources in the subproject district.

Table 26: Costs for the Loss of Cultural & Community Structures/Land/Facilities Total Cost Name of of the Construction S.N. Structure Settlement VDC District Structure Year Owner (NRs.) Bhagwati 1 Pipaldanda Barahakshetra Sunsari 20,000 2042 Mandir Flood Control 2 Hydrokolik Awa Chatara Ghat Barahakshetra Sunsari 72,600 2069 Ghar Shree Mahakali 3 Sombare Mainamaini Udayapur 116,000 -- H.S. School Shree Mahakali 4 Sombare Mainamaini Udayapur 80,000 -- H.S. School Shree Mahakali 5 Sombare Mainamaini Udayapur 56,000 -- H.S. School 6 School Dumrebote Thoksila Udayapur 75,000 -- 7 Pratiksalaya Hattisunde Thoksila Udayapur 10,000 2060 8 Chautaro Kamala Bari Thoksila Udayapur 15,000 2055 9 Mandir Rampur Thoksila Udayapur 28,800 2059 10 BudhaChowk Bhudha Chowk Thoksila Udayapur 25,000 2063 11 Pratikhyalaya Bhudha Chowk Thoksila Udayapur 15,000 -- 12 Pratikshyalaya Bhudha Chowk Thoksila Udayapur 1,500 2053 13 Church Sanibare Basaha Udayapur 106,600 2061 14 Temple Aambasi Tapeswori Udayapur 450,000 2058 15 Thana Rampur Thoksila Udayapur 456,000 2065 Jagata Adarsha 16 Sanibare Basaha Udayapur 398,400 2069 Ma Vi Jagata Adarsha 17 Sanibare Basaha Udayapur 365,120 2062 Ma Vi Jagata Adarsha 18 Sanibare Basaha Udayapur 392,448 -- Ma Vi Jagata Adarsha 19 Sanibare Basaha Udayapur 358,138 -- Ma Vi Jagata Adarsha 20 Sanibare Basaha Udayapur 255,486 2069 Ma Vi 21 Samudaik Aambani Tapeswori Udayapur 100,000 2068 Hanuman 22 Phattepur Phaettepur Saptari 1,752,000 2039 Mandir Kamalapur 23 Bhagani Kamalapur Saptari 1357800 2039 VDC Kamalapur 24 Bhagani Kamalapur Saptari 123,820 2066 VDC 25 Police Bit Aadarsha tole Dharampur Saptari 65,280 2056 26 Public Tab Kamala Bari Dharampur Saptari 5,000 2062 Goderdhan 27 Bairagi/Janata Phattepur Phaettepur Saptari 21000 2057 Ucha Nabi Pramaha 28 Sasrasik Ban Phattepur Phaettepur Saptari 214,060 2060 Office

Total Cost Name of of the Construction S.N. Structure Settlement VDC District Structure Year Owner (NRs.) 29 Simabadi Phattepur Phaettepur Saptari 19,110 2065 Shree Janat 30 Bhangeni Ghoghanpur Saptari 79,790 2065 Mabi 31 Temple Baluwa Ghoghanpur Saptari 31,850 2064 32 Airfield Aadarsha Dharampur Saptari 74,176 2064 33 Oldage Home Aadarsha Dharampur Saptari 923,800 --

Total 8,064,778

Source: Census Survey, July 2012

F. Resettlement Impact on Indigenous/Ethnic Peoples 57. As the socio-economic information reveals, the total number of displaced households (1332 HHs) also included 556 numbers of displaced indigenous households with 2844 population. The number of displaced IP households having different type of resettlement impact is also given in Table 27.

Table 27: Displaced IP Households by Ethnicity and Population Composition Caste/ Ethnicity No of Hhs Male Female Total Bhujel 11 24 26 50 Gurung 4 13 10 23 Limbu 5 7 7 14 Magar 69 182 173 355 Majhi 10 28 27 55 Rai 264 643 634 1,277 Sherpa 2 7 7 14 Tamang 65 157 154 311 Tharu 126 394 351 745 Total 556 1,455 1,389 2,844 Source: Census Survey, July 2012

12. No of Displaced IP Households by Affected Structures 58. Among the IP likely to have impact on their structures due to the subproject (1064 households), significantly higher number of (474) Disadvantage Janajati will have affect on their private structures comprising 227-Rai households, 93 – Tharu households, 70 - Magar households, 60 – Tamang households, 6 – Gurung households, 6 – Limbu household, 9- Majhi households and 3-.Sherpa households. (Table. 28).

Table 28: No of Displaced IP Households by Affected Structures

No of Structures by Type S.No. IP Semi- Traditional Modern Shed Toilet Tanti Total Mordern 1 Gurung 1 4 1 ------6

2 Limbu 1 1 -- 3 -- 1 6

3 Magar 10 41 4 13 -- 2 70

4 Majhi 3 4 -- 2 -- -- 9

5 Rai 30 146 7 30 -- 14 227

6 Sherpa -- 2 ------1 3

7 Tamang 5 38 4 6 -- 7 60

8 Tharu 3 22 14 53 1 -- 93

Total 53 258 30 107 1 25 474 Source: Census Survey, June 2012

13. Extent of Impact on the Structures of IP Households and Relocation Scope 59. As the displaced IP households have their own private land in the same location except non titleholders households (Table 28). A separate Indigenous People Plan (IPP) for the physical and socio-economic rehabilitation of the displaced IP household may not be required. Similarly, the acquisition impact also not likely to affect on their culture, life style, and existing identity as:  The displaced IP households do not have any collective attachment to geographically distinct habitats or ancestral territories in the project area, and belong, in all respects, to the wider communities residing in the country, with whom they share family relations as well as cultural ties.  They have no customary cultural, economic, social, or political institutions that are separate them from those of the dominant society and culture.  Although some of the indigenous/ethnic groups have their own language and cultural traits collectively they share common national culture and festivals.  They use Nepali language as the common tongue and share the similar social norms and value with other non-IPs in the area.

60. Based on the socioeconomic information of the displaced households, the IP also do not have any indigenous ancestral land, forests, water, wildlife, and other natural resources for their livelihood; and they have not been following the traditional occupations like hunting, fishing, etc. Rather with some minor variance they have been found sharing same socioeconomic opportunities with other non-IP households having almost similar socioeconomic indicator similar to other displaced non-IP households in terms of literacy and degree of education attainment, involvement on different occupations, and land holding status (Table 29).

Table 29:Comparative Key Socioeconomic Indicators of IP and All Displaced Households A. On Literacy and Educational Attainment Proportion of Proportion of all S.N. Indicators Displaced IP Displaced HHs HHs 1 Illiterate 14.77 14.2 2 Can read and write 12.27 11.9 3 Class 1-5 18.50 16.5 4 Class 6-10 26.97 25.3 5 SLC +2 15.68 18.2 6 More than Bachelor 6.05 8.0 7 Masters and above - - B. On the Involvement in Different Occupation 1 Agriculture 32.67 52.1 2 Service 5.80 6.5 3 Business 7.0 9.4 4 Wage Labor 5.38 4.7 5 Foreign Employment 4.78 4.4 6 House Wife 33.76 12.0 7 No work 3.97 - 8 Disable 0.88 4.0 9 Other - 1.0 10 Not involved in any occupation - - C. On Average Land Holding Size 1 < 1ha 13.9 62.7 2 0.1 ha-0.5 ha 35.0 30.8 3 0.5-1 ha 24.8 5.1 4 1ha-2 ha 9.1 0.8 5 > 2 ha 17.2 0.7 D. On Average Annual Income (NRs.) 1 Average Annual Income based on last year 942687.83 1061747.6

61. In addition to the compensation for the loss of assets, the entitlement matrix of the RP, the displaced IP households requiring shifting/relocation will also be paid two months local agricultural wage for rebuilding/rehabilitation of structures plus transport allowance to cover the cost for moving structures including load-offload cost. The vulnerable squatters will also be paid for the loss of structures and transport allowance but they will not be eligible for the loss of land. Similarly, the renters/tenants of the affected commercial and residential/commercial structures will be provided one month's rental financial assistance for moving to alternative premise for reestablishing their home/business plus transfer allowance

30 to cover the cost of shifting. For the DPs requiring shifting/relocation, the entitlement matrix also provisions; (i) a total of 90 days wage rate plus cash assistance equivalent to NRs10,000 per displaced IP households for shifting and restarting their livelihood [EM: B-7 (a & b), and EM: B9 (a & b)], (ii) skill development training according to the choices of DPs through the Supervision Consultant equivalent to NRs. 8000 per family [EM: B-7 (c) & EM: B-8 (c)], and (iii)scope of temporary employment through contractor in the construction phase [EM: B-7 (d) 8 EM: B-8 (d)].

III. SOCIOECONOMIC PROFILE AND INFORMATION

A. Profile of the Subproject Districts 62. The Subproject passes along three districts of Eastern Development Region (EDR); (i) Sunsari, (ii) Udayapur, and (iii) Saptari districts. The total area covered by Sunsari district is 1257 sq. km2, Udayapur and Saptari districts are 2063 sq.km2 and 1241 km2 respectively. All of the Subproject districts lie in Terai plain area. The Sunsari district is surrounded by Saptari in the east, Morang in the west, Udayapur and Dhankuta in the North, India in the South. Udayapur district surrounds Okhaldhunga, Khotang, and Bhojpur in the north. Bhojpur, Dhankuta and Sunsari districts in the east, Saptari, and Siraha, in the South, Sindhuli and Dhanusha in the west Similarly, Saptari district is surrounded by Sunsari in the east, Udayapur in the north, Siraha in the west and India in the South 63. The total number of households in the Subproject districts is 320,619, out of which Sunsari comprises 167,875 households, Udayapur 51,603 households and 101141 households in Saptari district. The total population of Sunsari, Udayapur, and Saptari district is 843,220, 287,689 and 570,242 respectively and the average household size is 5.02 to 5.64 people per household. Table 30 provides a brief summary on the key demographic profile of the Subproject districts.

Table 30: Key Demographic Characteristics of the Subproject District

Indicators S. N. Key Characteristics Sunsari Udayapur Saptari 1 Area 1257 km2 2063 km2 1241 km2 2 No. of Village Development Committees 52 44 115 3 Number of Municipalities 3 1 1 4 Number of Households 167,875 51603 101141 5 Total Population 843220 287689 570242 6 Average Household Size 5.02 5.58 5.64 7 Population Density- per sq.m. 4555/sq.m. 139 418 8 Literacy Rate 56.74% 53.31 49.29 9 Male Literacy 66.84% 64.52 62.76 10 Female Literacy 46.6 42.16 35.18 Source: National Census 2001

1. Population Distribution of the Subproject District by Caste/ Ethnicity 64. The population of the three subproject districts by Caste/Ethnicity based on National Census 2001 is depicted in the Table 31. Tharu occupied the highest percent (13.99%) population of caste/ethnic composition of the Sunsari district followed by Muslim (10.95%), Chhetri (8.38%), Hill Brahamin (7.94%), Rai (6.90%) respectively. Moreover, Chhetri (21.06%) occupied the top position in terms caste/ethnic population composition in Udayapur district, followed by the Rai (16.38%), Magar (13.81%), Tharu (7.6%), Hill Brahamin (6.76%) respectively. In Saptari district Yadhav (15.41%) occupied the highest position in terms of Caste/Ethnic population composition, followed by Tharu (12.83%), Muslim (8.24%), Teli

(7.24%), Musahar (7.05%) respectively. Table 31 figure outs Ethnic/Caste wise population in the project district.

Table 31: Distribution of Ethnic/Caste wise Population in the Subproject District

Sunsari District Udayapur District Saptari District Major Major Major Caste/ Caste/ n n Caste/ n Pop % Ethnic Pop % Pop % Ethnic Ethnic Group group Group Brahmin Brahmin 49,650 7.94 Brahmin Hill 19,442 6.76 15,599 2.74 Hill Hill Rai 43,154 6.90 Tharu 22,323 7.76 Bania 13,814 3.27 Muslim 68,481 10.95 Rai 47,128 16.38 Muslim 46,964 8.24 Tharu 87,523 13.99 Magar 39,721 13.81 Tharu 73,150 12.83 Yadav 27,249 4.36 Tamang 19,470 6.77 Yadav 87,865 15.41 Chhetri 52,456 8.38 Chhetri 60,578 21.06 Teli 41,299 7.24 Dhagari/ Chamar/ 22,592 3.61 Damai/Dholi 7,694 2.67 21,784 5.16 Thagar Harijan Koiri 26,688 4.27 Danuwar 7,425 2.58 Dhanuk 38,820 6.81 Mushahar 21,398 3.42 Sarki 6,597 2.29 Musahar 29,739 7.05 Unidentified Limbu 18,052 2.89 8,940 3.11 Dhobi 13,221 2.32 caste Newar 27,686 4.43 Newar 9,491 3.30 Khatwe 27,450 6.50 Hajam/ 16,856 2.69 Kami 13,583 4.72 Newar 12,303 2.16 Thakur Total 461,785 73.81 Total 262,392 91.21 Total 422,008 79.72 Total Total pop. Total pop. of pop.of of the 625,633.00 287,689.00 570,282.00 the district the district district Source: CBS, National 2001

2. Distribution of Indigenous Population in the Subproject Districts 65. Of the total populaton in the three Subprojects district, (1,483,604) about 36.20% (53,761) comprises indigenous population. Based on National Census 2001, among the three subproject districts, out of total Indigenous Population, Tharu comprises (35.3%), Rai (17.4%), Newar (11.2%) respectively in the Sunsari district. Likewise, Rai only constitutes (30.7%) of the total Indigenous population, followed by Magar (25.8%), Tharu (14.5%) respectively in Udaipur district. Moreover, Saptari district is dominated by Tharu (54.1%) in terms of Indigenous Population, followed by Dhanuk (28.7%), Newar (9.1%) respectively. In an average caste/ethnic composition in terms of Indigenous Population in three subproject district is Tharu (31.1%), followed by Rai (17.1%), Newar (of the Tharu of the toSaptari district, a large number of population comprising of Rai (72.39%), followed by Magar (9.7%), Newar and Dhanuk (9.2%) respectively. Table 32 figures out the distribution of Indigenous population in the project districts.

Table 32: Distribution of Indigenous Population in the Project District

Sunsari Saptari Udayapur Major Major Major Total % Indigenous Population Indigenous Population Indigenous Population people people people Tharu 87,523 Tharu 73,161 Tharu 22,323 183,007 34.1 Magar 10,054 Magar 2,408 Magar 39,721 52,183 9.7 Gurung 6,134 Gurung 132 Gurung 1,161 7,427 1.4 Newar 27,686 Newar 12,303 Newar 9,491 49,480 9.2 Tamang 13,452 Tamang 637 Tamang 19,470 33,559 6.2 Rai 43,154 Rai 1,665 Rai 47,128 91,947 17.1 Limbu 18,052 Limbu 1,888 Limbu 570 20,510 3.8 Dhanuk 10,466 Dhanuk 38,820 Dhanuk 106 49,392 9.2 Sherpa 989 Sherpa 61 Sherpa 582 1,632 0.3 Rajbansi 1,024 Rajbansi 23 Rajbansi 8 1,055 0.2 Sunuwar 1,426 Sunuwar 1,706 Sunuwar 2,230 5,362 1.0 Sattar Sattar/ santhal 357 Sattar/ santhal 375 37 769 0.1 /Santhal Jhangad/dad 22,592 0 0 0 - 22,592 4.2 Gangai 36 Gangai 13 Gangai 27 76 0.0 Thami 16 Thami 17 Thami 180 213 0.0 Dhimal 202 Dhimal 47 Dhimal 297 546 0.1 Bhote 83 Bhote 181 Bhote 160 424 0.1 Yakhha 416 Yakhha 32 Yakhha 53 501 0.1 Darai 9 Darai 3 Darai 4 16 0.0 Tajpuria 26 Tajpuria 5 Tajpuria 1 32 0.0 Thakali 8 Thakali 1 Thakali 5 14 0.0 Chhantyal 4 Chhantyal 3 -- 0 7 0.0 Bote 13 Bote 3 Bote 33 49 0.0 Jirel 8 Jirel 3 Jirel 8 19 0.0 Adibasi Adibasi janajati 24 113 -- 0 137 0.0 janajati Meche 255 Meche 204 Meche 5 464 0.1 Lepcha 16 Lepcha 86 Lepcha 1 103 0.0 Raji 5 Raji 19 Raji 4 28 0.0 Majhi 3,119 Majhi 314 Majhi 2,604 6,037 1.1 Danuwar 596 Danuwar 404 Danuwar 7,425 8,425 1.6 Byasi 231 Byasi 679 -- 0 910 0.2 Chepang Chepang 44 -- 0 34 78 0.0 /Praja /Praja 0 Kusunda 7 -- 0 7 0.0

Hayu 3 -- 0 Hayu 23 26 0.0

Sunsari Saptari Udayapur Major Major Major Total % Indigenous Population Indigenous Population Indigenous Population people people people Raute 3 Raute 31 -- 0 34 0.0 Total 248,026 Total 135,344 Total 153,691 537,061 100.0 Source: CBS, National 2001 3. Occupation and Economy 66. The household economy of the Subproject district is based on agriculture supported. However, people in the Subproject districts are also involved in business, service and overseas employment for income. Paddy, maize, and vegetable are the main crops grown in the area. 4. Poverty Incidence 67. As revealed in National Census Report 2001, and Human Development Report of Nepal, the Human Development Index (HDI) of Sunsari and Udayapur districts is higher than the national indicator whereas it is lower in the case the of Saptari district. However, Human Poverty Index (HPI) of all three Subproject district is lower than the national indicator. Similarly, Gender Development Index (GDI) of Sunsari and Udayapur districts is higher to national indicator whereas it is lower in the case of Saptari district (Table 33).

Table 33: Development Indicators of the Subproject Districts

Location HDI HPI GDI All-Nepal 0.471 40.5 0.452 Sunsari 0.50 32.2 0.478 Udayapur 0.488 40 0.474 Saptari 0.453 40.2 0.416 Source: National Census (2001), CBS and Nepal Human Development Report 2004 by UNDP

B. The Subproject Location 68. The Subproject road traverses through three districts with fourteen VDCs. The districts are namely Sunsari, Udayapur and Saptari. The alignment starts from the Nadaha of Bhaural VDC and passes Barahachhetra VDC of Sunsari district, Mainamaini, Thoksila (then Ratapani Thoksila), Katunje Babala, Basaha, Tapeswori of Udayapur district, Phattepur (then Bharuwakhal), Kamalpur, Ghoghanpur, Piparapurba, Dharampur, Kanchanpur, Rupanagar of Saptari district. The ensuing sub-chapters briefly describe the key profile of Subproject location. 5. Households and Population 69. Based on the National Census 2001, there are 19,884 households in the 14 VDCs traversed by the Subproject road. The total population of these VDCs is 109,229 comprising 49.67% male and 50.33% female with 5.49 average household sizes. Table 34 figure outs the key household characteristics of the project location in two districts.

Table 34: VDC Wise Household and Population Distribution of Subproject Area by District

Population by Sex Total Average VDCs Total HHs Male Female Population HH Size Number Percent Number Percent Sunsari District Bharaul 3,046 16,882 5.54 8,136 48.19 8,746 51.81 Baraha Kshetra 2,434 11,236 4.62 5,551 49.4 5,685 50.6 Subtotal 5,480 28,118 5.08 13,687 48.80 14,431 51.23 Udayapur District Mainamaini 846 4,977 5.88 2,392 48.1 2,585 51.94 Thoksila 3,454 19,246 5.57 9,667 50.2 9,579 49.77 Katunje Babala 782 4800 6.14 2473 51.5 2327 48.48 Basaha 515 3,226 6.26 1,629 50.5 1,597 49.5 Tapeswari 1,759 9,704 5.52 4,784 49.3 4,920 50.7 Subtotal 7356 41,953 5.87 20,945 49.9 21,008 50.08 Saptari District Phattepur 1,746 10,192 5.84 5,150 50.53 5,042 49.47 Kamalpur 824 4,820 5.85 2,476 51.37 2,344 48.63 Ghoghanpur 923 4,879 5.29 2,388 48.94 2,491 51.06 Piprapurba 622 3452 5.55 1720 49.83 1732 50.17 Dharampur 908 4,738 5.22 2,391 50.46 2,347 49.54 Kanchanpur 1,068 6,007 5.62 3,154 52.51 2,853 47.49 Rupnagar 957 5070 5.30 2467 48.66 2603 51.33 Subtotal 7,048 39,158 5.52 19,746 50.33 19,412 49.67

Total 19,884 109,229 5.49 54,378 49.67 54,851 50.33

Source: CBS, National 2001

6. Social Composition of Subproject Location 70. Collectively, social composition of the Subproject area can be categorized in three major caste/ethnic groups as; indigenous, dalits, and other caste groups. Rai, Limbu, Chaudhari, Newar, Majhi, and Magar are the major ethnic groups, Damai, Kami, Sarki are dalit groups, and Brahmin, Chhetries, Shah, Thakuri, Giri/Sanyasi are other caste groups. Collectively, the proportion of Ethnic/Janajati population is higher (43.5%) than the other caste/ethnic groups Brahmin/Chhetries and other higher caste groups (37.9%) and Dalits (18.6%) in the Subproject location (Table 35). However, the ethnic and dalit groups residing along the road corridor have been found integrated with the main social stream sharing common social and cultural values, norms, and having similar economic opportunities. Although some of the indigenous/ethnic groups have their own language and cultural traits they use Nepali language as the common tongue and share the similar national and social sentiments with the other mainstreamed groups. They do not maintain distinct way of life different from the normal and neither depended on typical traditional sources of earning for their merely livelihood (like; fishing, hunting, collecting herbal plants)

36 for their livelihood. Rather they are involved in different occupations including overseas employment as the other groups do.

Table 35: Caste and Ethnic Composition of Subproject S.N. Caste/Ethnicity % 1 Brahmin/Chhetri/Sanyasi/Others 37.9% 2 Ethnic/Janajati 43.5 3 Dalit 18.6% Source: CBS, National 2001

C. Profile of the Displaced Households 71. Key socio-economic characteristics of the displaced household collected from the interviewed displaced households have been discussed in the following sub-section. 1. Population Distribution of Displaced Household 72. The total displaced population of 1332 households covered by census survey in fourteen VDCs of the three Subproject districts is 7062 . Most of the displaced households (34.08%) of the Subproject area have been found concentrated in Thoksila VDC of Udayapur district, followed by Phattepur VDC (21.10%) of Saptari district, Basaha VDC (8.63%) of Udayapur district. However, Rupnagar of Saptari district is such a VDC where only one house is covered for census survey as there is less number of households going to be affected. Similarly, three households of Kanchanpur VDC of Saptari district and seven households of Katunje Babala VDC of Udayapur district are recorded for census survey. The sex wise population of displaced households in the Subprojects VDCs and average household size is summarized in Table 36.

Table 36: Distribution of affected Household and Population by District and VDCs

House Population Average VDC % hold Male % Female % Total % HH Size Sunsari Barahakshetra 92 6.91 249 6.75 246 7.29 495 7.01 5.4 Sub Total 92 249 246 495 5.4

Udayapur Mainamaini 31 2.33 78 2.12 76 2.25 154 2.18 5.0 Thoksila 454 34.08 1173 31.81 1102 32.65 2275 32.21 5.0 Katunje Babala 7 0.53 16 0.43 16 0.47 32 0.45 4.6 Basaha 115 8.63 255 6.92 264 7.82 519 7.35 4.5 Tapeshowri 99 7.43 278 7.54 250 7.41 528 7.48 5.3 Sub Total 706 1800 1708 3508 5.0

Saptari Phattepur 281 21.10 831 22.54 753 22.31 1584 22.43 5.6 Kamalpur 55 4.13 191 5.18 132 3.91 323 4.57 5.9 Ghoghanpur 70 5.26 226 6.13 173 5.13 399 5.65 5.7 Pipra Purba 10 0.75 28 0.76 24 0.71 52 0.74 5.2 Dharampur 114 8.56 352 9.55 330 9.78 682 9.66 6.0 Kanchanpur 3 0.23 7 0.19 5 0.15 12 0.17 4.0 Rupnagar 1 0.08 3 0.08 4 0.12 7 0.10 7.0 Sub Total 534 1638 1421 3059 5.7

Grand Total 1332 3687 3375 7062 5.3

Source: Census Survey, July 2012

2. Caste/Ethnic Distribution of the Affected Households in Subproject VDCs/Districts.

73. The Caste/Ethnic composition of the likely to be displaced households in Subproject project districts and VDCs is characterized by heterogeneous in nature, comprising Hill Indigenous (Rai,Limbu,Magar,Tamang,) Mountain indigenous (Sherpa) and Terai Indigenous people (Tharu, Jhagad, Rajbamsi), dalit, and other (Brahman, Chhetri, Thakuri etc) with some extent largest indigenous/ethnic groups population (Table 37).

Table 37: Caste /Ethnic Composition of Displaced Households by Districts/VDCs

VDC Brahaman Chhetri Dalit Janjati Newar Sanaysi Muslim Other Total Sunsari Barahakshetra 2 20 4 48 14 1 0 3 92 Sub Total 2 20 4 48 14 1 0 3 92 Udayapur Mainamaini 0 4 1 26 0 0 0 0 31 Thoksila 42 145 20 193 21 6 0 27 454 Katunje Babala 0 0 1 6 0 0 0 0 7 Basaha 4 1 11 89 6 3 0 1 115 Tapeshwori 6 40 14 38 1 0 0 0 99 Sub Total 52 190 47 352 28 9 0 28 706 Saptari Phattepur 33 69 20 75 17 2 1 64 281 Kamalpur 4 14 2 12 3 0 0 20 55 Ghoghanpur 6 23 0 24 3 0 2 12 70 Pipra Purba 0 4 0 5 0 0 0 1 10 Dharampur 40 14 1 29 2 0 10 18 114 Kanchanpur 0 1 0 0 0 0 0 2 3 Rup Nagar 0 0 0 0 1 0 0 0 1 Sub Total 83 125 23 145 26 2 13 117 534 Grand Total 137 335 74 545 68 12 13 148 1332 Percentage 10.3 25.2 5.6 40.9 5.1 0.9 1.0 11.1 Source: Census Survey, July 2012

3. Summary Caste/Ethnic Distribution of the Affected Households in Subproject VDCs/Districts.

74. The summary presented below Table indicates that Caste/Ethnic composition of the likely to be displaced households in Subproject project districts and VDCs is also characterized by heterogeneous in nature, comprising disadvantage Janajati like Rai,Limbu,Magar,Tamang etc (40.9%), Hill Brahamin, Chhetri, Thakuri, Sanyashi (36.3%) and Terai Brahamin, Kayastha, Rajput (11.1%), Ethnic Occupational Caste (Dalit) (95.6%), Advantage Janajati (Newar) (5.1%), Religious Minorities (1%) respectively. Summary of Caste/Ethnic group is depicted in (Table 38).

Table 38: Summary of Caste /Ethnic Composition of Displaced Households by Districts/VDCs S.N. Ethnicity No of HHs Percent Hill Brahamin, Chhettri, Thakuri, 1 484 36.3 Sanyashi and others 2 Tarai Brahamin, Kayastha, Rajput 148 11.1 3 Advantage Janajati (Newar) 68 5.1 4 Disadvantage Janajati (IP) 545 40.9 5 Ethnic Occupational Caste (Dalit) 74 5.6 6 Religious Minorities 13 1.0 Total 1,332 100 Source: Census Survey, July 2012

4. Family Type of Affected Households 75. As the census data reveals out of total interviewed affected households 369 (27.7%) belongs to nuclear family and 963 (72.3%) households belongs to joint family (Table 39).

Table 39: Family Type of the Displaced Households

S.N. Family Type Number % Remarks 1 Nuclear 369 27.7 -- 2 Joint 963 72.3 -- Total 1,332 100 Source: Census Survey, July 2012

5. Displaced Person by Gender and Age 76. The total population of the census households is 7062 with an average household size of 5.3 people per household. Of the total population of displaced households, the proportion of economically active age groups is 66.06% followed by aged persons (8.44%), age group of 5-15 years (19.61%), and under five children (5.89%). Details of displaced persons by gender and age group are summarized in Table 40.

Table 40: Displaced Persons by Gender and Age Group Male Female Total Age Group No of No of No of HHs % % % HHs HHs Less than 5 Years 228 6.18 188 5.58 416 5.89 5-15 Year 706 19.13 679 20.14 1,385 19.61 15-60 Year 2,438 66.07 2,227 66.04 4,665 66.06 More than 60 Year 318 8.62 278 8.24 596 8.44 Total 3,690 3,372 7,062 Source: Census Survey, July 2012

6. Literacy Status of Displaced Population 77. The overall literacy status of Displaced household reveals that 14.2% (n-1003) population are illiterate, and 11.9 % (n-838) can just able to read and write. However, the highest percent 25.3% (n-1784) population of displaced households have been found within

39 class 6-10. The proportion of people obtaining higher education or above bachelor’s level has been found only 8.0%. Women literacy status is comparatively low in compare to male literacy status. Table 41 provides the details.

Table 41: Literacy Status of Displaced Population Literacy Status Male % Female % Total % Illiterate 283 7.7 720 21.4 1003 14.2 Can read and Write 385 10.4 453 13.4 838 11.9 Class 1 – 5 616 16.7 551 16.3 1,167 16.5 Class 6-10 993 26.9 791 23.5 1,784 25.3 SLC - 10+2 790 21.4 498 14.8 1,288 18.2 More than Bachelor 395 10.7 171 5.1 566 8.0 Less than 5 Years 228 6.2 188 5.6 416 5.9 Total 3,690 3,372 7,062 100 Source: Census Survey, July 2012

7. Land Holding Status and Average Land Area Owned by Displaced HHs 78. Of the total households included in census survey (1332 HHs), information on affected land parcels could be verified only from 1280 HHs. Therefore, the land holding size of the displaced household could be obtained from 1280 HHs. Based on the verified record 802 (62.7%) interviewed displaced households have been found owning less than 0.1ha, followed by 394(80.8%) HHs owning 0.1ha to 0.5ha of land, 65 (6.1%) HHs owning 0.5ha to 1ha of land, 10(0.8%) HHs owning 1ha-2ha of land, and 9 (0.7%) HHs owning more than 2ha of land respectively. The below table indicates that in all VDCs majority of displaced households have been owning 0.1ha to 0.5ha of land. The following table (Table 42) shows the landholding pattern of displaced households.

Table 42: Land Holding Size of the Verified Displace Households in the Subproject Road

More 0.1 ha- 0.5 ha - 1ha - District < 0.1 ha % % % % than % Total 0.5 ha 1 ha 2ha 2 ha

Sunsari 36 73.5 12 24.5 1 2.0 0 0.0 0 0.0 49

Udayapur 279 48.8 230 40.2 50 8.7 7 1.2 6 1.0 572

Saptari 487 73.9 152 23.1 14 2.1 3 0.5 3 0.5 659

Total 802 62.7 394 30.8 65 5.1 10 0.8 9 0.7 1280

Source: Census Survey, July 2012

Note: In the above table, information is obtained only from the verified displaced households based on their affected parcels, because the displaced people are reluctant to provide their additional land related information.

8. Occupational Status of Displaced Population 79. Of the total economically active age group, 52.1% of the economically active population of the census households are engaged in agriculture followed by housewife (12.0%), business (9.4%), service (6.5%) foreign employment (4.4%), wage labour (4.7%), others (1%) respectively (Table 43). Among them female involvement in agriculture and farm activities have been reported to be slightly higher (52.5%) compared to male (51.8%). Female's extensive involvement in agriculture maybe considered as one of the indicators of their hardship (drudgery).

Table 43: Occupational Status of Displaced Population by Sex

Occupation Male % Female % Total % Agriculture 1910 51.8 1770 52.5 3680 52.1 Services 352 9.5 107 3.2 459 6.5 Business 427 11.6 237 7.0 664 9.4 Wage Labour 295 8.0 36 1.1 331 4.7 Foreign Employment 276 7.5 36 1.1 312 4.4 House Wife 33 0.9 817 24.2 850 12.0 Disable 140 3.8 141 4.2 281 4.0 Other 29 0.8 40 1.2 69 1.0 Less than 5 228 6.2 188 5.6 416 5.9 Total 3,690 3,372 7,062 Source: Census Survey, July 2012

9. Migration Trend of Displaced Households 80. Of the total family members in the census households, 74 (73.26%) affected households have been reported migrated one member and 27 (26.76%) households reported migrated two members to other places. 51.49% households in Saptari district migrated somewhere to seek better job opportunities, followed by 40.59% households in Udayapur districts, 7.92 households in Sunsari district respectively. As reported by the respondents the major destination is Kathmandu, other district, India etc to seek employment opportunity. (Table 44).

Table 44: Migration Trend of Displaced Households One Member Migrated Two Member Total District HHs Migrated HHs No. % No. % No. % Sunsari 6 8.11 2 7.41 8 7.92 Udayapur 36 48.65 5 18.52 41 40.59 Saptari 32 43.24 20 74.07 52 51.49 Total 74 73.26 27 26.76 101 Source: Census Survey, July 2012 10. Gender Status and Drudgery 81. As indicated by the outcome of social consultation, collectively female's status in the sampled households has been found to be lower than the male family members. Most of the female in the sampled households, as in other rural area of the country are mainly

42 responsible for caring and bearing children, and overall management of day to day household activities including farm work. Findings of the survey data shows, about 21.4 % females of the sampled households are illiterate (Table 45), and 68 household’s female reported high involvement in selling and purchasing, only 18 household’s female reported high involvement in household activities, similarly, 117 household’s female reported low involvement in households activities, and only 5 household’s women reported in decision making. Overwhelmingly 177 household’s women reported equal involvement in decision- making, followed by 123 household’s women reported equal involvement in selling and purchasing, 125 household’s women reported equal involvement in agriculture activities. Based on discussion with the women family members of the interviewed households and local communities some of the other factors creating hardship to the females in the Subproject location are: lack or insufficient maternity and childcare services in their immediate reach, and practice of alcoholisms and gambling among the male family members.

Table 45: Gender Role in Displaced Households

In percentage (25% sampled households) Particular High Low Equal No Involvement Involvement Involvement Responses Agriculture 29 39 125 34 Household Activities 18 117 90 16 Selling and 68 40 123 8 Purchasing Decision Making 51 5 177 5 Source: Census Survey, July 2012

11. Vulnerable Households 82. Of the total displaced households interviewed during census (1332 HHs) , 186 households have been reported to be vulnerable of different categories. Among them women headed households is 3.98% (n-53), followed by households with disabled members 0.83% (n-11), households headed by elderly persons 4.28% (n-57), and Below Poverty level (BPL) households 4.88% (n-165), The official poverty line of Nepal has been estimated as NRs. 19,261 by CBS in 2010-11. Table 46 provides the breakdown of affected vulnerable households by type of vulnerable categories by Subproject districts.

Table 46: Affected Households by Different Vulnerable Categories

Elderly Member Below Poverty Women Headed Households with Total House Headed Level Households Disable Members hold VDC Households Households[1] No % No % No % No % No % Sunsari Barahakshetra 9 0.68 0 0 3 0.23 1 0.08 13 0.98 Sub Total 9 0.68 0 0 3 0.23 1 0.08 13 0.98 Udayapur Mainamaini 1 0.08 0 0 1 0.08 1 0.08 3 0.23 Thoksila 16 1.2 1 0.08 18 1.35 34 2.55 69 5.18

Elderly Member Below Poverty Women Headed Households with Total House Headed Level Households Disable Members hold VDC Households Households[1] No % No % No % No % No % Katunje 0 0 0 0 0 0 0 0.00 0 0.00 Babala Basaha 2 0.15 0 0 11 0.83 9 0.68 22 1.65 Tapeshowri 6 0.45 1 0.08 3 0.23 12 0.90 22 1.65 Sub Total 25 1.88 2 0.15 33 2.48 56 4.20 116 8.71 Saptari Phattepur 11 0.83 3 0.23 9 0.68 3 0.23 26 1.95 Kamalpur 1 0.08 1 0.08 1 0.08 0 0.00 3 0.23 Ghoghanpur 3 0.23 1 0.08 5 0.38 3 0.23 12 0.90 Pipra Purba 0 0 0 0 0 0 0 0.00 0 0.00 Dharampur 4 0.3 4 0.3 6 0.45 2 0.15 16 1.20 Sub Total 19 1.43 9 0.68 21 1.58 8 0.60 57 4.28 Grand Total 53 3.98 11 0.83 57 4.28 65 4.88 186 13.96 Source: Census Survey, July 2012

12. Household Income and the Poverty 83. Nepal is one of the poorest countries in the world. Most of the country’s population (above 80 %) lives in rural areas where poverty is more prevalent and sever. Poverty incidence in Nepal is high. 84. The 2010/11 Nepal Living Standard Survey (NLSS-III) shows that although poverty in Nepal has declined between 2003-04 and 2010-11, approximately one-fourth (25%) of Nepalese population are still below the national poverty line as of 2010-11. The rate of poverty reduction is lower in rural areas compared to urban areas. There is also evidence suggesting that the underprivileged social groups are the most impoverished. 85. There are a number of interlocking problems faced by the poor, which are also mutually reinforcing. The problems include, among others, low income and consumption, poor nutritional status, low educational attainment, low access to social and economic facilities and services, low access to economic opportunities, vulnerability to external shocks, and exclusion from economic, social and political processes. Therefore, Government of Nepal has considered access to road as one of the major sectoral approach to achieve the goal of poverty reduction. 86. Poverty in Nepal is defined in absolute term based on the requirement of minimum subsistence level rather than per capita income. Nepal Central Bureau of Statistics (CBS) has used Cost of Basic Needs (CBN) method for the estimation of poverty line based on current prices per person per year. Poverty is calculated based on the average annual household income and its adequacy to meet the minimum subsistence needs of the family members. The Method used by CBS to determine the cost for minimum subsistence level is included in Box 1.

Box 1: Criteria to Estimate Below Poverty Line

- The per capita per day nutritional requirements for the average Nepali is determined. The Estimated requirement was 2,220 kcl per person per day - Then the cost of a bundle of food items to provide this nutritional requirement is calculated. The cost was NRs. 11,929 in 2010-11. - Finally the non-food consumption of the households is determined, costed and added with the cost of the food bundle. The non-food consumption was NRs. 7,332 per person per year in the year 2010-11. - Based on the above calculation the official poverty line of Nepal was estimated as NRs. 19,261 by CBS in 2010-11 Source: Nepal Living Standars Survey, GoN, Central Bureau of Statistics, 2011

87. CBS has calculated the poverty line once in 1995-96 and another in 2003-2004 and 2010-11. In 2010-2011 CBS has calculated the poverty line for six geographical locations (Kathmandu, Other Urban Area, Rural Western Hill, Rural Eastern Hill, Rural Western Terai and Rural Eastern Terai) besides the national poverty line. Table 47 provides details on poverty lines calculated by CBS by different geographical location for 2003-04 and 2010-11.

Table 47: Poverty Line in Current Prices Per Person Per Year

Poverty Line Calculated in 2003-04 Poverty Line Calculated in 2010-11 Geographical S.N. Non-Food Non-Food Locations Food Item Total Food Item Total Item Item 1. Kathmandu 6,722.0 4334.8 11056.8 14,610 26,323 40,933 2. Other Urban 4,919.2 2981.9 7901.1 11,744 8,081 20,355 Rural Western 3. 5,613.0 3,288.5 8,901.5 12,537 5,891 18,428 Hill Rural Eastern 4. 5,211.2 2758.5 8069.6 12,297 4,254 16,551 Hill Rural Eastern 5. 4,323.2 1,755.6 6,078.8 11,333 5,524 16,856 Terai All Nepal 4,966.4 2,729.4 7,695.7 11,929 7,332 19,261 Source: Poverty Trend in Nepal (2003-04 and 2010-11), Central Bureau of statistics

88. As shown in Table 47, national poverty line calculated by CBS is NRs. 7695.70 per person per year in 2003-04, where as it has gone up to NRs 19,261 based on the Basic Minimum Need (BMN) required for the minimum subsistence of an individual. This means that any household having per capita income less than NRs. 19,261 required to meet BMN of the family member is considered Below Poverty Level (BPL) households.

13. Average Annual Income and Poverty Status of Census Households 89. In line with the CBS criteria, average annual household income of the census households has been assessed in order to estimate the number of BPL households. Trade/business and Services have been reported as the main source of earning of census households. The other sources of income of the census households are foreign employment a followed by labor, agricultural consumption, agricultural products.

Table 48: Average Annual Household Incomes No of Respond Avg Income Source of Income Total Amount Per capita/ HHs % Amount Perperson Agricultural Products 8,833,270 197 6.53 44,838.9 1,250.82 (Cash Income) Converted Cash Income from Own 17,454,346 729 24.15 23,942.9 2,471.59 Product Consumption VegetableComsuption 617,425 159 5.27 3,883.2 87.43 Furit Selling 2,608,860 132 4.37 19,764.1 369.42 Livestock Selling 5,886,510 217 7.19 27,126.8 833.55 Livestock Products 3,050,191 78 2.58 39,105.0 431.92 Services 58,814,040 287 9.51 204,927.0 8,328.24 Labour 26,523,060 294 9.74 90,214.5 3,755.74 Trade/Business 71,183,892 416 13.78 171,115.1 10,079.85 Foreign Employment 56,451,705 241 7.98 234,239.4 7,993.73 Rent/Pension 11,780,848 164 5.43 71,834.4 1,668.20 Others 13,729,410 105 3.48 130,756.3 1,944.12 Total 276,933,557 3,019 100.00 1,061,747.6 39,214.61 Source: Census Survey, July 2012

90. Based on the CBS criteria of consumption requirement for minimum subsistence, out of 1332 census households, 65 fall under the below poverty line.13 List of the below poverty displaced households is included in Annex 5.1 – 5.4. under the list of vulnerable displaced households. D. Socio-Economic Profile of Displaced Indigenous People’s Households 91. Among the 1332 total displaced households, 556 households belong to indigenous peoples (IP) with 2844-population size. The proportion of displaced IP households is about 41.74% of the total affected households (1332 HHs). The major ethnic groups of the displaced IP households are Rai —comprising 264 households, followed by Tharu, 126 households; Magar, 69 households; Tamang, 65 households; Bhujel, 11 households; Majhi, 10 households; Limbu, 5 households; Gurung, 4 households; and Sherpa, 2 households, respectively. The Subproject road is also likely to be affected 21 households of ethnic occupational caste (dalits) and 59 households of Advantage Janajati (Newars). Table 47 provides summary of displaced IP households by ethnicity and population composition.

13 The poverty status was calculated based on the national poverty line estimated by the CBS Nepal. While calculating the poverty status, first, the average annual household income was calculated. After this, the poverty line was measured by converting the average household income into per capita income required for BMN based on the average family size. Then the households are having per capita less than NRs. 13,230 was determined as below poverty households.

Table 49: Displaced IP Households by Ethnicity and Population Composition Ethnicity/Caste No of HHs Male Female Total Bhujel 11 24 26 50 Gurung 4 13 10 23 Limbu 5 7 7 14 Magar 69 182 173 355 Majhi 10 28 27 55 Rai 264 643 634 1277 Sherpa 2 7 7 14 Tamang 65 157 154 311 Tharu 126 394 351 745 Total 556 1455 1389 2844 Source: Census Survey, July 2012

1. Displaced Indigenous Person by Age Group 92. The total population of the displaced indigenous household is 2844 with an average household size is 5.3. Among them, the proportion of economically active age groups is 66.17% (1882 –persons) followed by 7.74% aged groups (220 persons), 20.32% (578 persons) between age group of 5-15 years, and 5.77% (164 persons) under five children. Details of displaced persons by gender and age group are summarized in Table 50.

Table 50: Displaced Indigenous Person by Age Group

More Less than 15-60 Caste/Ethnicity 5-15 Year than 60 Total 5 Years Year Year Bhujel 2 7 38 3 50 Gurung 1 3 18 1 23 Limbu 0 5 6 3 14 Magar 21 76 237 21 355 Majhi 4 10 40 1 55 Rai 65 264 841 107 1277 Sherpa 0 2 10 2 14 Tamang 18 68 202 23 311 Tharu 53 143 490 59 745 Total 164 578 1882 220 2844 Percentage 5.77 20.32 66.17 7.74 100.00 Source: Census Survey, July 2012

2. Literacy Status of Displaced Indigenous People (IP) 93. Of the total displaced indigenous peoples population (2844 persons) 14.77% (n-420) persons are illiterate, and 12.27 % (n-349) persons are just able to read and write. However, the highest percent 26.97% (n-767) population of displaced IP households have been found studying in between classes 6-10. The proportion of people obtaining higher education or above bachelor’s level has been reported to be only 6.05% (n-172). Collectively, as the census data shows, there is no significant difference between the IP and all displaced households in terms of literacy and attainment of formal education. (Table 51). Please refer

47 the education status of the displaced household under profile information of the displaced households.

Table 51: Literacy Status of Displaced Indigenous People (IP) Population

- 10+2

Caste/

- Total

Ethnicity

5 Years 5

Illiterate

Bachelor

Can read Can

and Write and

Class 1 Class

More than than More

Class 6 Class

SLC SLC 1 Less than than Less 1 Bhujel 10 3 10 15 10 0 2 50 Gurung 5 0 5 7 5 0 1 23 Limbu 6 0 5 3 0 0 0 14 Magar 40 56 73 103 49 13 21 355 Majhi 11 7 13 15 5 0 4 55 Rai 205 160 242 378 173 54 65 1277 Sherpa 3 1 0 5 5 0 0 14 Tamang 47 33 68 99 38 8 18 311 Tharu 93 89 110 142 161 97 53 745 Total 420 349 526 767 446 172 164 2,844 Percentage 14.77 12.27 18.50 26.97 15.68 6.05 5.77 100.00 Source: Census Survey, July 2012

3. Occupational Status of Displaced Indigenous Population 94. Of the total displaced indigenous population (2844 persons), 2567 persons (excluding below 5 years and no work) have been found engaged in different type of income generating activities. Among them, 929 persons (32.67%) are engaged in agriculture followed by 960 females (33.076 %) have been working as a housewife, 199 persons (7.00%) in business, 165 persons (5.80%) in service, 153 persons (5.38%) in wage labour, 136 persons (4.78%) in foreign employment respectively,. Table 52 provides details of the occupational status of displaced population of IP. Like in education status, there are also no significant differences reported between the IP and all displaced households in terms of their involvement in agriculture and other income generating activities. Please refer the education status of the displaced household under profile information of the displaced households.

Table 52: Occupational Status of Displaced Indigenous People

Caste/Ethnicity Total

Wages

Disable

Foreign

Services NoWork

Business

Agriculture

House Wife

Emplacement Less than Less Years 5 Bhujel 20 3 3 7 2 10 2 1 2 50 Gurung 12 0 0 0 1 5 2 2 1 23 Limbu 3 1 1 1 3 5 0 0 0 14 Magar 108 18 23 14 26 127 16 2 21 355 Majhi 20 1 6 2 2 20 0 0 4 55 Rai 451 46 81 71 68 438 49 8 65 1277

Caste/Ethnicity Total

Wages

Disable

Foreign

Services NoWork

Business

Agriculture

House Wife

Emplacement Less than Less Years 5 Sherpa 5 0 3 0 1 4 1 0 0 14 Tamang 106 9 22 21 16 99 18 2 18 311 Tharu 204 87 60 37 17 252 25 10 53 745 Total 929 165 199 153 136 960 113 25 164 2844 Percentage 32.67 5.80 7.00 5.38 4.78 33.76 3.97 0.88 5.77 100.00 Source: Census Survey, July 2012

4. Average Annual Income and Poverty Status of Census Households 95. In line with the CBS criteria, average annual household income of the census IP households rihave been assessed in order to estimate the total number of BPL households. Foreign employment and Trade/business has been reported as the main source of earning of census households. The other sources of income of the census households are Services followed by labor, agricultural consumption, and agricultural products.

5. Average Annual Income and Poverty Status of IP Census Households Table 53: Annual Average Income of IP Census Households No of Avg Income Respondents Total Source of Income Amount Per capita/ HHs % Amount Perperson Agricultural Products (Cash Income) 3,133,970.0 81 6.53 38,690.98 1,101.96 Agricultural consumption 6,109,905.6 304 24.52 20,098.37 2,148.35 Vegetable Consumption 282,950.0 66 5.32 4,287.12 99.49 Fruit Selling 494,660.0 49 3.95 10,095.10 173.93 Livestock Selling 2,914,250.0 93 7.50 31,336.02 1,024.70 Livestock Products 1,078,200.0 23 1.85 46,878.26 379.11 Services 16,772,540.0 114 9.19 147,127.54 5,897.52 Labour 13,479,300.0 144 11.61 93,606.25 4,739.56 Trade/Business 18,993,492.0 134 10.81 141,742.48 6,678.44 Foreign Employment 22,734,305.0 106 8.55 214,474.58 7,993.78 Rent/Pension 5,509,400.0 72 5.81 76,519.44 1,937.20 Others 6,362,910.0 54 4.35 117,831.67 2,237.31 Total 97,865,882.6 1,240 100.00 942,687.83 34,411.35 Source: Census Survey, July 2012

6. Land Holding Size of Displaced Indigenous Household 96. Based on the findings of census survey, all the displaced IP households have been reported owning private land and none of them is landless. Of the total displaced IP households having affect on their land 13.9 % (n-46) have been found owning less than 0.1ha, followed by 35.00% (n-116) owning 0.1ha, 24.8% (n-82) owning 0.5ha to 1ha, 5.99% (n-30) owning 1ha-2ha, and 11.317.2% (n-57) owning more than 2ha of land respectively. The table below indicates that a majority of displaced IP households have been owning 0.1ha to 0.5ha of land The following (Table 54) shows the landholding pattern of IP displaced households. The land holding size of the displaced IP households is also not radically different compared the average land holding size of all displaced household.

Table 54: Land Holding Size of Displaced Household of Indigenous People 0_1 ha-0.5 0_5 ha-1 More than 2 < 0_1 ha 1ha-2 ha S.No IP ha ha ha Total No % No % No % No % No % 1 Bhujel 3 37.5 3 37.5 2 25.0 0 0.0 0 0.0 8 2 Gurung 1 33.3 1 33.3 1 33.3 0 0.0 0 0.0 3 3 Limbu 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 4 Magar 5 13.9 14 38.9 7 19.4 3 8.3 7 19.4 36 5 Majhi 1 12.5 2 25.0 3 37.5 0.0 2 25.0 8

6 Rai 25 17.4 55 38.2 33 22.9 10 6.9 21 14.6 144 7 Sherpa 0 0.0 0 0.0 0 0.0 0 0.0 1 100.0 1 8 Tamang 5 14.3 17 48.6 5 14.3 0 0.0 8 22.9 35 9 Tharu 6 6.3 24 25.0 31 32.3 17 17.7 18 18.8 96 Total 46 13.9 116 35.0 82 24.8 30 9.1 57 17.2 331 Source: Census Survey, July 2012

7. Community Perception and Key Issues Raised 97. The DPs and communities as a whole along the road corridor have been found quite positive towards the proposed road improvement program. Majority of them were found aware about the benefits of proposed Subproject for: (i) immediate access to reliable transport facilities for their mobility to the district headquarter and other part of the district as well, (ii) enhancement of economic activities in the area, and (iii) creating employment opportunities to the local people. Nevertheless, the local communities also shared some of their key concerns /questions on local social issues related to the proposed project. Some of the key issues raised by the local communities and suggested measures to address them are briefly described as follows (Table 55).

Table 55: Key Social Issues Related to the Subproject and Suggested Measures

S.N Issues Raised Suggested Measures 1 Subproject will follow the  The widening and improvement activities need to existing alignment or be carried out along the existing alignment to construction will carry out minimize the acquisition impacts. by acquiring new land. 2 Construction of road may  Department of Roads need to coordinate with the also cause loss of District Forest Office and forest users groups at community forest, the local level in order to mitigate/manage the government forest along likely loss of community forests

S.N Issues Raised Suggested Measures the existing road due to acquisition of additional land and use of firewood for construction activities and labors involved in the construction work 3 Other benefits to the local  Local communities and organizations to be communities involved in information awareness and social development program (e.g. HIV/AIDS, livelihood improvement program etc) to be carried out under the project and interested persons should to be given opportunities for the employment in construction activities 4 Program directly  The project needs to carry out information and benefiting to women and awareness program on road accident and safety children to be to the different target groups (including women incorporated in the and schoolchildren). Similarly, such information community development and awareness raising program also need to program to be carried out incorporate contents related to the social evils under the project (such as gamble, alcoholism, child labour, prostitution, HIV/AIDs etc), and used of alternative energy (e.g. smoke free ovens known as "Dhuwan Rahit Chulho" for better cooking environment inside the house Source: Census Survey, July 2012

IV. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION A. Consultation and Review 98. The available published and unpublished project related documents from the DoR and ADB reports, prepared from the design team, and other relevant documents collected from different sources were reviewed while finalizing this RP. Similarly, formal and informal discussions and consultations were also held with the officials of relevant institutions/stakeholders at different levels in order to assess information related to the Subproject road and scope of resettlement impacts. The professional advice received from the ADB officials have also been considered as guidance in this process. A conceptual framework prepared for consultation and review is included in Table 56.

Table 56: Conceptual Framework for Stakeholder Consultation Key Purpose Method Stakeholders  To seek advice and to share  Frequent formal/informal issues and progress related to meetings to share the project the project tasks related issues and progress Central Level with the DoR, Project Directorate (ADB) officials, and team members of design consultants  To assess the available width of  Official letter and formal and road in field situation informal meeting with district  To access information on level stakeholders (e.g. religious/cultural/historical/ officials of land measurement community assets in the project and land revenue office, location district land survey office, district administration office,  To assess the availability of and other relevant district Government (Ailani) land that level agencies may not require to compensate District Level Line Agencies  To collect district land price

 To verify the land owner of the affected plots.  To collect cadastral maps related to the subproject road.  To identify the road alignment in the cadastral map and affected area.  To collect other relevant secondary information  Information dissemination about  Group meetings/consultation, the project, to collect information individual meeting/sharing Local on likely resettlement impacts, with the local communities, Communities and mitigating measures, and family members of displaced and Project assessing information on social households, local leader, Affected perception, common social school teachers, local Households issues and collecting business men, displaced suggestions women and vulnerable groups

Key Purpose Method Stakeholders  Socio-economic information of  Interview with the family the project affected families members of the sampled households through socioeconomic questionnaire and group discussion with DPs and local communities at different places Local  Census of DPs and information  Listing of the households and Communities of their affected assets detailing inventory of affected and Project assets after plotting the road Affected in cadastral map. Households  Interview of the family members of affected households through census questionnaires  Use if appropriate inventories to record the affected assets by DPs B. The Stakeholders 99. ADB guidelines suggest consulting stakeholders at different level for ensuring their participation on decision-making and RP preparation/implementation. In line with the ADB guidelines, stakeholders at different levels were consulted throughout the process of preparing this RP. Some of the key objectives of stakeholder consultation are: . Assess information related to the project and associated resettlement issues; . Assess concerns of relevant stakeholders, . Ensure stakeholders involvement in RP preparation process, and . Solicit stakeholders suggestions for a meaningful resettlement planning document 100. The key stakeholders consulted in the course of preparing this RP include; (i) officials at DoR, and Project Directorate (ADB) at central level; and (ii) Officials of DoR Divisional Office, District Land Survey Office (DLSO), District Land Revenue Office (DLRO), District Development Committee, District Administration Office (DAO). Similarly, local community, DPs and their family members, local leaders, VDC representatives, and other key persons were also consulted at the Subproject location. C. Public Consultation 101. The public consultation was focused to the local communities and DPs at different location across the road alignment. Consultation was pursued by informing about the project and answering questions raised by the communities including DPs. With a view to maintain, consistencies on the contents of response, an outline of agenda and approach of public consultation was conceptualized in advance (Table 57). Collectively, most of the agenda discussed during the public consultation were related to compensation provision and its rate. The consulted people were informed about different aspects of the projects and likely resettlement impacts and mitigation measures. They were also informed about the (i) process of assessing resettlement impacts during the detail design, (ii) process of compensation determination in accordance to the Land Acquisition Act 1977 and provisions

53 of compensation and other assistance made in the entitlement Matrix. The stakeholders involved in community consultation were, local people, DPs and their family members, local representatives of political parties, school teachers, business persons, women, and other vulnerable groups.

Table 57: Agenda and Approaches of Public Consultation Agenda Approaches Introduction  Introduction of the field study team Information  Information about the project, detail study and its dissemination about the purpose project and objectives of  Reasons of conducting field sample and census survey resettlement and of the DPs and their affected assets and socioeconomic socioeconomic survey surveys for RP preparation Resettlement scope of  Scope of resettlement impacts of the projects due to the the subproject road Subproject impact Measures under taken to  Sharing about legal provision of prevailing Land address the unavoidable Acquisition Act 1977 on compensations, acquisition, and resettlement impacts resettlement  Information about the legal provision of determining compensation rate by Compensation Determination Committee (CDC) to be formed under the Land Acquisition Act 1997 Activities carried out by  Process of listing the households going to be affected, field study team and their assets followed by interview with respective family members  Method of collecting socioeconomic information from sample households in the project location  Measurement method of affected structures and recording of ownership status on inventories  Process of finalizing resettlement planning document after detail design Group/individual  Type of households in the area (e.g. Indigenous People, discussion with DPs, Ethnic Occupational Caste (Dalits) and other vulnerable local community, and households like; women headed households, other local stakeholders households with disabled members, elderly headed on key issues related to households, households with officially below poverty resettlement level etc  Type of Ownership of land (private, Government, (Ailani), forest, religious/cultural/community etc) in the subproject area, major crops grown etc  Types of displaced households (e.g. titleholders, tenants, sharecroppers, official tenants, agriculture, encroachers etc)  Type of structures ownership in the area (e.g. titleholders, squatters, encroachers, land less etc)  Major economic activities in the area, perception about the proposed project, willingness to support the project activities, women's issues and drudgery, Sexually

Agenda Approaches transmitted Infections (STI) and HIV/AIDS, human and drug trafficking, gamble and alcoholism, potential benefits of the proposed project etc

Responses to be made on the questions raised by the local communities and DPs

D. Findings of the Public Consultation and Issues Discusses 102. Among other the Public consultation and disclosure activities have been found effective on several issues like: (i) disseminating project related information to the local communities, DPs, and other stakeholders, (ii) informing about the likely resettlement impacts and measures to be adopted to avoid/minimize such impacts, (iii) to inform about the provision and process of acquisition, compensation, rehabilitation and relocation (as applicable). It is also found fruitful on assessing local communities' perception, expectation, and suggestions related to the project. Collectively, the result of stakeholder consultation was found to be positive. Some of the key focuses and feedbacks from the community have been summarized in Table 58.

Table 58: Key Focus and Feedbacks of Community Consultation Focuses Feedbacks  On ensuring the accountability of  Responsible staff and team willing to stay in the census data of affected assets field having adequate knowledge about the and DPs, and effective RP social and resettlement issues in the rural implementation context need to be mobilized to implement RP  The verification of RP need to be carried out with the presence of relevant representatives (land surveyor, resettlement specialist of the project, engineers, local communities and DPs)  Information on the absentee DPs and their affected assets should also be included during the RP implementation  There are number of public  Adequate efforts needs to be made during the structures throughout the construction phase to protect the Temples, Subproject road alignment. Rest places, VDC buildings, Police check post, Temples, Rest places, VDC School buildings, Old aged home and buildings, Police check post, remaining other public utilities like drinking School buildings, Old aged water irrigation canal etc are located along the home, are located along the side side of existing road likely to be affected. of existing road likely to be affected. Hence, to protect these public structures, adequate attention of the project authorities is extremely needed.  If public structures are likely to be  During construction special attention should be affected within the 15 m either paid by PIU regarding the likely affected

Focuses Feedbacks side, such structures should be structures within the COI (15m either side) relocated in a convenient places should be relocated in a convenient places as as requested by the local requested by the local community. community.  On ensuring effective  Local communities including DPs/ community compensation distribution based organization/non-governmental organization, and local land surveyor need to be involved for effective implementation of resettlement activities in the construction phase.

E. Key Issues Raised During Social Consultation 103. The consultant team carried out 11 nos of consultation thoughout the road alignment. During consultation, 252 affected persons were participated whereas 235 were male and 17 were female. The feedbacks of social consultation as summarized in above table is based on the issues discusses with the local people and DPs with Indigenous people. The synopsis on the issues raised by local community and DPs involved in consultation and the response made is briefed in the following consultation matrix (Table 59). The minutes of public, consultation (in Nepali) has been incorporated in Annex 6 for reference.

Table 59: Social Consultation Matrix

compensation of 15m either side should be arranged rate will be fixed by Compensation Determination in reasonable cost. Committee (CDC) to be formed under the The existing private structures, trees and fruits trees chairmanship of the Chief District Officer (CDO)

Barahakshetra will be affected due to project, the reasonable The public structures likely to be affected by the

Male : 16 VDC compensation cost should be provided. project will be relocated during the implementation Female : 2 Ward No. 1 If public structures are going to be affected within the phase in collaboration with local community

15m either side, such structures should be relocated Barahakhshetra in a convenient places as requested by the local community. Committed to support in the construction phase The existing road is 12m width in an average, and the Compensation for affected land and other assets will CoI is fixed 15m either side. Hence, the compensation be paid by the Government and the compensation

of 9m either side should be arranged in reasonable rate will be fixed by Compensation Determination Barahakshetra market price. Committee (CDC) to be formed under the VDC Male :11 The existing public structures should be relocated in chairmanship of the Chief District Officer (CDO) Ward No. 4 Female : 4 an appropriate place as suggested by community. DoR will arrange necessary action to provide the

Devisthan Employment opportunities should be provided to the employment to the affected people as far as possible. local during construction phase. The DoR will pay serious attention to protect as far as Committed to support in the construction phase possible.

Name of VDC/ Consulted Answers Given /Measures adopted in RP to Questions/Issues Raised and Discussed Place Municipality Persons Address the Issues The existing road is 12m width in an average, and the Compensation for affected land and other assets will CoI is fixed 15m either side. Hence, the compensation be paid by the Government and the compensation of 9m either side should be arranged in reasonable rate will be fixed by Compensation Determination market cost. Committee (CDC) to be formed under the The likely affected structures, land which are chairmanship of the Chief District Officer (CDO) constructed in government land should provisioned DoR will arrange necessary action to provide the

the reasonable compensation cost due consideration employment to the affected people as far as possible. Mainamaini of local market price. The DoR will pay serious attention to protect as far as Male :18 Ward No. 6 Compensation should be made on the quality of land. possible. Female : 2 Minimization of impacts on land and structures as far Sombare as possible. The existing private structures, trees and fruits trees will be affected due to project, the reasonable compensation cost should be provided. Skilled based training to generate income for the local people should be provided. Committed to support in the construction phase The existing road is 12m width in an average, and the Compensation for affected land and other assets will CoI is fixed 15m either side. Hence, the compensation be paid by the Government and the compensation of 9m either side should be arranged in reasonable rate will be fixed by Compensation Determination market cost. Committee (CDC) to be formed under the Protection of Shiva Panchayan Temple around the chairmanship of the Chief District Officer (CDO) premises and the all the others too. DoR will arrange necessary action to provide the Thoksila VDC The likely affected structures, land which are employment to the affected people as far as possible. Male :26 No. 2 constructed in government land should provisioned The DoR will pay serious attention to protect the Female : 1 the reasonable compensation cost due consideration Shiva Panchayan Temple located in Rampur Bazaar of local market price. of Thoksila VDC as far as possible.

RampurBazaar Employment opportunities should be provided to the local during construction phase and income generation activities should be provided to the local people especially to the displaced people. Committed to support in the construction phase

market cost. Committee (CDC) to be formed under the Tapeswori The existing private structures, trees and fruits trees chairmanship of the Chief District Officer (CDO) Male :17 VDC No. 9 will be affected due to project, the reasonable DoR will arrange necessary action to provide the Female : 4 compensation cost should be provided. employment to the affected people as far as possible. Aambasi Employment opportunities should be provided to the local during construction phase as per the community capacity Committed to support in the construction phase The existing road is 12m width in an average, and the Compensation for affected land and other assets will CoI is fixed 15m either side. Hence, the compensation be paid by the Government and the compensation

of 9m either side should be arranged in reasonable rate will be fixed by Compensation Determination market cost. Committee (CDC) to be formed under the Kamalpur The existing private structures, trees and fruits trees chairmanship of the Chief District Officer (CDO) Male :9 VDC will be affected due to project, the reasonable DoR will take necessary steps arrange necessary Female : 0 Ward No. 6&7 compensation cost should be provided. action to provide the employment to the affected Employment opportunities should be provided to the people as far as possible. Bhaginichowk local during construction phase as per the community capacity Committed to support in the construction phase Agreed to the existing road alignment is 12m width. Compensation for affected land and other assets will Affected land and structures should compensate as be paid by the Government and the compensation per the recent market price. rate will be fixed by Compensation Determination Ghoghanpur Male : 19 Employment opportunities should be provided to the Committee (CDC) to be formed under the VDC Female : 1 local during construction phase as per the community chairmanship of the Chief District Officer (CDO) Ward No. 5 capacity DoR will take necessary steps arrange necessary

Malet QuarterMalet action to provide the employment to the affected people as far as possible. Disagree to provide the land even the compensation DoR authority should arrange the interaction Dharampur is paid. programmed with the likely displaced people to Male : 19 VDC, acquire the land before implementation phase. Female : 1

Hatiya Ward No. 6

Name of VDC/ Consulted Answers Given /Measures adopted in RP to Questions/Issues Raised and Discussed Place Municipality Persons Address the Issues The existing road is 12m width in an average, and the Compensation for affected land and other assets will CoI is fixed 15m either side. Hence, the compensation be paid by the Government and the compensation Dharampur/Ru of 9m either side should be arranged in reasonable rate will be fixed by Compensation Determination Male : 33 pnagar VDC, market cost. Committee (CDC) to be formed under the Female : 0

Hatiya Ward No. 6/7 The existing private structures, trees and fruits trees chairmanship of the Chief District Officer (CDO) will be affected due to project, the reasonable compensation cost should be provided. Agreed to the existing road alignment is 12m width. Compensation for affected land and other assets will The CoI is considered 12m width and the additional be paid by the Government and the compensation Dharampur land should be acquired by following the centre line rate will be fixed by Compensation Determination Male : 19 VDC, from the 12m. Committee (CDC) to be formed under the Female : 2 Ward No. 1/2 The existing private structures, trees and fruits trees chairmanship of the Chief District Officer (CDO) will be affected due to project, the reasonable compensation cost should be provided. The 15m CoI may hamper entire market area of DoR authority should arrange the interaction Phattepur Phattepur, hence, it should be decided only after the programmed with the likely displaced people to settle Male: 48 VDC Ward intensive discussion with likely displaced people. the controversial issues and acquire the land before Female; No. 3 implementation phase.

Photographs of Different Consultation with Stakeholders

F. Consultation and Dissemination with Indigenous People 104. The dissemination/disclosure and consultation activities carried out during the RP updating process also focused to the Indigenous People (IP) likely to be affected by the Subproject. Collectively, the displaced IP also share the same opinion as done by the PDs of other caste and ethnic groups. However, some of the key issues specially raised by the displaced IP in some Subproject location is summarized in Table 60.

Table 60: Consultation Matrix with the Indigenous People

Name of VDC/ I. Consulted Answers Given / Measures adopted in RP to Questions/Issues Raised and Discussed Place Municipality Persons Address the Issues  The Lord Buddha statue is one of the cultural  DoR should pay special attention in order to symbol of the Tamang/Rai/Limbu/Sherpa protect the Lord Buddha Statue, which is community, which is located at Buddhachowk cultural symbol of the Indigenous People like cluster of Thoksila VDC, should protect as far as Tamang/Rai/Limbu/Sherpa.

possible. DoR will play key role to provide employment  Special provision of local employment opportunity and appropriate income generation opportunities should be arranged with focusing to activities during construction phase especial Thoksila Male-21 likely Displaced Indigenous People during focus to the Indigenous People’s Displaced VDC Female-5 construction phase households.

Buddhachowk  Income generation activities appropriate to site specific should be provided to the Indigenous people especially to the displaced one.

 Committed to support in the construction phase

 The Sal tree and Stone statue which is the  DoR should pay special attention in order to religious places of the Tharu community, located protect the religious holy places like Sal tree at Aambase cluster of Tapeswori VDC, should and Stone statue of the Tharu community protect as far as possible. located at Aambase cluster of Tapeswori VDC.

 Being a IP of the location, the Subproject should  DoR will play key role to provide employment Male-17 give first priority in the local employment to the opportunity and appropriate income generation Tapeswori Female-6 likely displaced Tharu households during activities during construction phase especial

construction phase focus to the Indigenous People’s displaced Aambase  Income generation activities appropriate to site households. specific should be provided to the Indigenous people especially to the displaced one.  Committed to support in the construction phase

G. Scope of Further Consultation 105. Several additional rounds of consultations with the relevant stakeholders (district level agencies, local communities, DPs and other agencies) will be carried out in construction phase. Such consultation will carry out in collaboration with the relevant agencies (district/local level agencies, local communities, DPs, including vulnerable groups as needed. Some of the key activities requiring further consultation in RP processing are related to: . Disseminating information on the matters related to RP implementation; . Updating the list of Displaces Persons (DPs) in accordance to the changes made on technical design, and to incorporate information from the absentees; . Identification of underlying practical issues and appropriate mitigation measures related to acquisition and compensation; . Delineation of the extent of impact on affected assets; . Supporting CDC to negotiate compensation rate; . Informing the schedule and process of compensation distribution; . Updating and preparing the records of affected assets; . Ensuring local communities and DPs representation on grievance readdress process, . Resolving the grievances; . Distributing compensation; . Relocating, readjusting, and evacuation of acquired area; . Pursuing resettlement/rehabilitation/income restoration/ conducting livelihood improvement activities;

H. Disclosure of RP 106. The project Implement Unit (PIU) will carry out following disclosure activities in order to ensure transparency and active involvement of DPs and other relevant stakeholders in resettlement planning, and implementation process: . The draft resettlement plan with summary will be uploaded in the website of Executing Agency (EA) and updated in accordance to revision; and . A copy of approved RP will be officially submitted to ADB to upload in ADB web. . A summary updated resettlement plan and entitlement matrix will be (translated into Nepal language) will be disclosed to the DPs, local community and other relevant agencies at project district during the implementation once it get finalized During implementation phase, the assigned social mobilizer will make necessary efforts to deliver/disclose the required information through local language as far as possible. Similarly, the social mobilizer also verbally read out to the DPs during consultations.

V. GRIEVANCES REDRESS MECHANISM A. General 107. The project affected persons have formal recourse to the Chief District Officer and Ministry of Home Affairs in case of grievance under regulations specified under the Land Acquisition Act 1977. Further, the Sub project will set up a Grievance Redress Committee in the district and a Grievance Redress Sub-Committee at VDC level to hear complaints. Owners feeling unfairly pressurized into involuntary resettlement can complain to the official Grievance Redress Committee. A grievance process has been established in the RP and DPs who are not satisfied that compensation, replacement of lost assets and livelihoods and allowances due to them have been fairly provided are able to seek redress and to make a formal complaint ( Box 2). Box 2: Some Anticipated Grievance

. Displaced persons not listed in the entitled persons list, . Information on affected assets and extent of impact not recorded properly, . Inadequate or improper compensation provision not matching to entitlement matrix, . Disputes related to the ownership or authenticity of the submitted ownership documents

. Dispute on compensating the affected assets having joint ownership, . Dispute related to variance on compensation rate for similar losses, . Dispute on getting compensation or mode of rehabilitating community assets, and so on

. Dispute about the family member's share (also called Ansa in Nepali) over the affected assets

108. Land Acquisition Act, 1977, through its Clause 11 (sub clause 1,2,3,4) provisions to submit grievance by Displaced Persons (DPs), if unsatisfied with land acquisition process. Similarly, Clause 18 (sub-clause 1,2,3) of the Act provisions for filing or representing the case by DPs to the CDO and raise objection against acquisition or compensation fixed for the acquired assets by a notice to the Ministry of Home Affairs (MoHA). In this sense, several grievances may likely to rise in RP implementation causing delay on the progress on compensation distribution. Formation of GRC is the most to reduce the pressure of grievances and cut down the lengthy litigation. As stipulated in Clause 11 of the Land Acquisition Act 1977, Chief District Officer (CDO) is responsible to give decisions on all the grievances related to land acquisition and resettlement issues. In order the facilitate the process, the Project Manager (PM) will coordinate and support the CDO as a Member Secretary on forming a Grievance Redress Committee (GRC) and addressing the grievances.

B. Formation of Grievance Redress Committee 109. The PM in close coordination with CDO, will, form a GRC at Subproject level. The other members to be included in the committee are; PM as Member Secretary and representatives from the district level line agencies (District Land Revenue Office, District Land Measurement Office, Municipality or Village Development Committee, District Development Committee, District Agriculture Office, District Forest Office, and representative from other district level agencies, and other stakeholders as required). Similarly, Community Based Organizations (CBOs) in the districts, representatives of affected/ vulnerable households including women, local representatives (e.g. school teachers, health workers, business persons, local resource persons etc), local leaders and other relevant persons. Figure 3 provides a sample organization structure of the proposed GRC.

Figure 3: Organizational Structure of GRC

Chief District Officer

Project Manager

Representatives of Line Representatives Independent Agencies including of CBOs/NGOs Representation of Municipality/VDC Affected households including Vulnerable Groups and Women

110. Subproject Level Committee. In order to facilitate the GRC on resolving grievances, Subproject Level Committees (SLCs) will be established at different locations as required. The SLCs will facilitate the GRC and DPs on redressing the grievances and timely distribution of compensation. Project-affected persons including DPs of the respective VDC/Municipality, local representatives of political parties, religious leaders, vulnerable groups, and local CBOs, and other stakeholders as applicable will represent the SLC. The SLC will play coordinating role between DPs and the GRC to minimize and address the grievances. The SLC will assist the Subproject Office/PM, and Social/Resettlement Specialist of the Construction Supervision Consultant (CSC) on informing people about the likely resettlement impacts, provision of compensation and other assistance to the Displaced Persons (DPs), RP implementation and grievances redressing methods as well as to solicit their view on the RP implementation. The SLC will also be responsible to inform the GRC and resettlement specialist on the grievances likely to be raised by DPs, and to minimize them with the support of GRC and local people before formal submission to the GRC.

C. Operational Mechanism 111. Grievance Redress Committee (GRC) will meet regularly (at least twice in a month or as per the requirement) on a pre-fixed date. The GRC will take decision within the fortnight of receiving trhe complaint. The committee will thoroughly review the grievances submitted or expressed verbally by DPs, and will assign the responsibilities to relevant agencies on implementing the decisions of the committee. If the DPs, not satisfied from the decision of the GRC, will have their right to take the grievance up-to the Ministry of Home Affairs.

112. Failing the addressing of grievances at Subproject level will be referred to the Ministry of Home Affairs (MoHA). The MoHA normally require making decision on a complaint within 15 days, unless further information is required, or unless the complaint has to be solved in, a court of law (e.g. ownership disputes). The aggrieved person is free to approach the contry’s legal syatem at any stage of the grievance redress processs. The proposed grievance resolution procedure will be as shown in Figure 4 below:

Figure 4: Grievances Resolution Steps and Process

Dissatisfied person/party submit The grievance

Grievance reported Grievance to SLC Resolved

If not, sent to PM to investigate with the Grievance assistanceVI. of Resettlement Specialist Resolved of CSC

If unresolved, referred to CDO for Grievance resolution Resolved

If unresolved again, referred to Home Ministry for Resolution

VI. POLICY AND LEGAL FRAMEWORK A. The Context 113. The government of Nepal has promulgated different laws and legislations for different sectors as prescribed by the constitution of Nepal. There are different laws interrelated to each other such as for construction of road there are independent acts like road act, forest act, land act and the property right mentioned in the constitution and some guidelines to be entertained for this RP. 114. The Interim Constitution of Nepal (2007), proclaims that the state shall give priority to the protection of environment, prevention of further damage due to physical development activities by increasing the awareness of the public about environmental cleanliness, and suggesting preventive mitigation measures. 115. With respect to property rights: the constitution establishes property rights to every citizen of Nepal whereby every citizen is entitled to earn, use and sell, except for public welfare. The state will not acquire or obtain or exercise authority over individuals’ property the state will compensate for the loss of property specified specific acts. 116. Public Road Act 1974 prohibits the construction of permanent structures (buildings) in a defined distance from the rural road i.e. the road agency has the authority over everything within the Right of Way (RoW). The act makes provision for cases where the road projects temporarily require land and/or other properties during construction, rehabilitation and maintenance. A compensation fixation committee (CFC) determines compensation in case of loss of assets, business or production. 117. The act empowers DoR to acquire any land on temporary basis during construction and upgrading. The act does not provide for leasing of land. DoR required to pay compensation for any damages caused to buildings, crops and trees, where the farming activities of the landowner id interrupted, and where the landowner has to incur expansions to restore the land after its return. Compensation is determined between DOR and titleholder, or through mediation, involving officials from the relevant VDC and district. 118. Land Acquisition Act 1977, and its subsequent amendment in 1993 specify procedures of acquiring land and payment of compensation for such acquired land and other assets. The Act empowers Government to acquire any land, on the payment of compensation for public purposes or for the operation of any development project initiated by the Government institutions. The legal provision and practices ensure that people have right to get compensation for any type of losses due to development activities to safeguard the economic future of all Displaced Persons (DPs). Land Acquisition Act ensures assessment, valuation and compensation for any acquisition of private properties. 119. Land acquisition, compensation and resettlement in Nepal, is still considered as a project based activity. As there is lack of a single national level policy to deal on resettlement issues, it is mainly guided by Land Acquisition Act 1977, supported by other various sectoral Acts (e.g. Immovable Property Acquisition Act 1956, Land Reform Act 1963, Water Resources Act 1992, Electricity Act 1992/Rule 1993, Civil Aviation Authority Act 1997, Environmental Protection Act 1997 etc) as necessary. At present, infrastructures including roads, hydro- electricity, irrigation, civil aviation and industrial projects are some of the main sectors requiring land acquisition. Since eighties, development projects in Nepal have also been guided by the respective policies of several bilateral and multilateral funding agencies (like ADB and WB, GTZ, SDC) on case-to-case basis according to the need of projects. This practice contributed to result variations on entitling compensation and other assistances to the DPs for the losses of their assets. In consideration to such underlying issues and policy gaps, Government of Nepal has drafted a National Policy on Land Acquisition, Compensation and Resettlement in Development Projects in 2006 with the technical assistance of ADB TA 4422 NEP. However, the policy has yet to be approved. It is therefore, until now, Land Acquisition Act 1977 is the core document to guide on the matters related to resettlement in the country. The following

70 subsections describe the legal frameworks for land acquisition based on Government Acts and ADB’s Safeguard Policy Statement (2009).

B. Land Acquisition Act 120. Highlights on some of the key resettlement and compensation provisions as stipulated in Land Acquisition Act 1977 have been briefly illustrated as follows: . Government can acquire land for any public purpose (Clause 3&4 of the Land Acquisition Act); . Land Acquisition Officer (LAO) shall be responsible to identify, survey, and notification to the concerned parties and other works related to acquisition (Clause 5&6); . The LAO shall determine the amount of compensation for the damaged property while conducting initial survey works (Clause 7); . Within 15 days after the preliminary actions, the LAO has to confirm the required land and submit other details of the required property to the Chief District Officer (CDO); . The CDO to publish public notification with details of the affected property after receiving the report of the preliminary activities (Clause 9); . Any grievances to disable land and property acquisition could be reported to Home Ministry within 7 days of public notification to CDO. Home Ministry is to decide on the grievances within 15 days as a capacity of district court (Clause 11); . Preliminary hearing of grievances/cases related to the Act shall be done by CDO. Appeal to such hearing could be made to the appeal court within 35 days (Clause 40); . Upon addressing the grievances CDO can hold the land for acquisition (Clause 12); . Compensation for the acquired land / property to be decided by a Compensation Determination Committee (CDC) comprising of Chief District Officer, Land Revenue Officer, Project Manager, and representatives of the District Development Committee. The compensation to be paid in cash and separate compensation rates could be fixed for the partially affected land or completely affected land (Clause 13); The overall responsibilities of LAO, as provisioned in Land Acquisitions Act, is to prepare a detailed plan, however, the CDC is the final authority that determines all types of cost regarding the assets. LAO is an individual or team, and CDC is the body under whose direction he acts, and which evaluates, discusses, approves, improves or rejects the plan and recommendations of the LAO . Official tenant to be paid compensation as per the prevailing laws (Clause 20); . Unpaid Government tax could be deducted from the compensation amount (Clause 21).

C. ADB’s Safeguard Policy Statement 121. ADB Safeguard Policy Statement (SPS) 2009, and Guidelines for Involuntary Resettlement. It is mandatory for all ADB assisted Projects to recognize and address the Resettlement and Rehabilitation (R&R) impacts of all the Displaced Persons (DPs) irrespective of their titles and requires for the preparation of an appropriate Resettlement Plan (RP) in the case where involuntary resettlement exists. ADB Safeguard Policy Statement (SPS) is the guiding rule to identify impacts and to plan measures for mitigating various losses likely to occur due to resettlement impacts. Some of the key provisions of ADB SPS and Guidelines on Involuntary Resettlement are: . Where Involuntary Resettlement (IR) is unavoidable, the impact should be minimized by exploring project and design alternatives;

. Enhance or at least restore the livelihoods of all displaced persons in real terms relative to pre-project levels; . Improve the standards of living of the displaced poor and other vulnerable groups; . Gender analysis is required to identify related resettlement impacts and risks; . Resettlement Plans (RP) should be prepared in full consultation with Displaced Persons (DPs), host communities, and stakeholders; . Preference will be given to land-based resettlement for displaced persons whose livelihoods are land-based. However, if the land is not the preferred option or the land is not available at reasonable price, the DPs will be provided opportunities for employment, or self employment in the project works, in addition to the reasonable cash compensation for land and other assets lost; . Cash compensations for the loss of structures, other assets and incomes should be based on full replacement cost; . Absence of formal legal title to land or non-recognized or recognizable claims to such land by the Displaced Persons (DPs) should not be a bar to compensation; . The rate of compensation for land, structures and other assets should be calculated at full replacement cost based on fair market value; transaction cost; interest accrued; transitional and restoration cost, and other applicable payments, if any. . All compensation payments and related activities must be completed prior to the commencement of the civil work; . Special attention to be paid to the needs of vulnerable groups especially those below the poverty line, the landless, the elderly, women and children and indigenous people and those without legal title to land.

D. Gaps between ADB and GON Resettlement Policy and Bridging Measures 122. Though apparently both Land Acquisition Act 1977 and ADB Guidelines aims to ensure compensation to the DPs for the loss of properties and other assets, there are some differences on their entitlement provisions (Table 61):

Table 61: Key Policy Gaps and Bridging Measures Key Policy Measures Adopted ADB SPS (2009) Government Laws Gaps in this RP Compensation All the compensation is Compensation rate will be  Provisions have Principle based on the principle determined by CDC, been made for the of replacement cost. consisting of (i) CDO, (ii) replacement cost representative from DDC for the loss of land, (iii)Chief of Land Revenue houses/structures; Office (iv) Project subject to be Manager, (Land finalized by CDC. Acquisition Act Clause 13) DPs are allowed to The Land Acquisition Act take salvaged 1977, also mention the materials. need of considering  CDC will make final periodic circulations issued decision on the by the GoN while fixing compensation rates compensation for the after reviewing and affected assets (Land verification of Acquisition Act Clause 16) affected assets Focus to Full respect for Apparently, the Land  Provisions have indigenous indigenous peoples’ Acquisition Act 1977 does been made for people identity, dignity, human not mention about this. income restoration rights, livelihood However, the Interim

Key Policy Measures Adopted ADB SPS (2009) Government Laws Gaps in this RP systems, and cultural Constitution of Nepal program if IPs are uniqueness as defined through its Article 13 does economically by the indigenous not restrict to make such vulnerable. peole themseves provisions for uplifting the indigenous/ethnic people Focus to Focused on the poor Apparently, the Land  Provisions have Vulnerable and vulnerable group Acquisition Act 1977 does been made for Groups to avoid future not mention about this. income restoration impoverishment and However, the Interim program and other create new Constitution of Nepal financial assistance opportunities through its Article 13 does not restrict to make such provisions for uplifting the vulnerable groups (like; women, dalits, Madhesi, poor farmers, land less labours, and other socially and economically disadvantaged groups including children and physically and mentally incapable persons) Compensation Squatters/ vulnerable Do not consider squatters/  Provision have for Non- encroachers/non- title encroachers/ non-titled been made for titleholders holders are entitled to land users for compensation to the payment for compensation the vulnerable non- affected titleholders having structures/houses/ affect on structures business/crops, trees, and other assistance Relocation All the eligible DPs LA Act Clause 16-2(ga)  Provision have Assistance including tenants, provisions to consider been made for the employees are entitled extent of losses caused transitional to receive financial due to relocation/shifting of allowances, assistance to cover Displaced people, while transport physical and fixing the compensation allowances and economical rate (LA Act Clause 16- one time financial displacement 2(ga) assistance to the tenants, employees Income Income restoration Apparently, the Land  Provision have Restoration program such as Acquisition Act 1977, do been made to training and other not consider for income provide training measures to restore restoration. and measures in and improve the the EM standard of living of the displaced households of those having more than 10 % of the total landholdings and income

E. Resettlement Principles and Assistance for the Proposed Project 123. Land Acquisition Act 1977, Clause 16 (a) stipulates to consider Government Guidelines, decisions, and circulations issued time to time with regard to valuation of assets and compensation determination. Accordingly, the resettlement principles adopted for this Subproject also recognizes both, the Land Acquisition Act 1977, and ADB Safeguard Policy Statement 2009 and Involuntary Resettlement Policy. In order to bridge the gaps between the Government and ADB Policies, the resettlement principles adopted in this project will provide compensation and resettlement assistance to all Displaced Persons (DPs) and their affected assets in accordance to Land Acquisition Act 1977 also considering other relevant Government Acts, policies and practices being adopted in the implemented and ongoing road projects. Based on the above policy features, the principles of R&R for this Project will entail the followings: . The negative impacts of the Project will be avoided or minimized as much as possible; . Where the negative impacts are unavoidable, the DPs will be assisted on improving or regaining their standard of living. Vulnerable groups will be identified and assisted to improve their standard of living; . Land replacement14/or cash compensation at replacement costs based on current market rate to the DPs subject to be fixed by CDC; . Cash compensation for all affected structures (residential/residential-cum commercial and other structures) affected by the project at replacement cost subject to be determined by CDC; . Assistance will be provided to the owners of structures and non-titleholders, who may incur loss of ability to maintain livelihood during relocation and resettlement; . Rehabilitation assistance i.e.; compensation for lost business and workdays (including employees) due to relocation and disruption of business enterprise; . Compensation and R&R assistance will be made in accordance with this policy before taking possession of the acquired lands and properties; . Appropriate mechanism will be established at the district as well as local level to ensure speedy resolution of grievance and disputes; . All activities related to resettlement planning, implementation, and monitoring will be ensured through involvement of women, other vulnerable and DPs. F. Cut-off Date 124. In the case of land acquisition, the date of publication of preliminary notification for acquisition as provisioned by Land Acquisition Act 1977 will be treated as the cut-off date. For the non-titleholders such as squatters and encroachers, the cut-off date is the date of project census completed for this RP (End of July 2012).

14 There is also provision of land for land compensation to the DPs having complete loss of their land only if Government land is available in the area (Land Acquisition Act 1977, Clause 14)

VII. ENTITLEMENTS ASSISTANCE AND BENEFITS A. Entitlement Policy and Matrix 125. This chapter reviews the policy framework that applies to the project. Land Acquisition Act (LAA) 1977, compatible with the ADB Safeguard Policy Statement 2009, guides resettlement Plan (RP). According to The Land Acquisition Act 2034, if the Government of Nepal (GoN) or any party acquire portion of land of the public it should pay compensation or on the negotiation for public purposes and works. The RP provisions compensations to the DPs for all types of losses. In addition to the compensation for affected assets, the DPs will also receive other cash grants and resettlement assistance such as; shifting allowance, loss of workdays, income restoration, and additional financial assistance to the vulnerable DPs; such as household headed by women, disabled persons, ethnic groups, and household living below poverty level. The DPs under the project will be compensated at full replacement cost based on current market price to be determined by Compensation Determination Committee (CDC). The entitlement matrix (Table 62) provides details regarding the application of the principles, definition of entitled persons, and entitlements. Description on compensation provisions and other financial assistance made for different items are discussed in the following subsections based on the provisions made in the Entitlement Matrix (EM).

B. Compensations Provisions 126. Compensation for land acquisition. One time cash compensation to the DPs at replacement cost for the permanently acquired private land (homestead, agricultural lowland, agricultural upland, fallow land and others), in accordance to the provision in Land Acquisition Act 1977. In the Act, there is also option of land for land compensation only if, Government land is available in the area 15 . Compensation for land will be given at local market value/replacement cost to be determined by CDC16 [Ref. EM: A- 1 (a, b, c)]. Permanent tenants/sharecroppers will receive 50 % cash compensation for the loss of tenancy due to acquisition of land. All the fees, taxes incurred in the relocation will be borne by the project.

C. Compensation for the Loss of Income Generating Assets 1. Loss of Income by Agricultural Crops, and Fruit and Non-fruit Trees

127. Cash compensation for the loss of agricultural crops at current market value of mature crops based on average production subject to be fixed by CDC [EM:B-1 (a & b)]. For the loss of fruit trees, compensation will be paid for the next 5 to 15 years average fruit production and its type based on the fruit bearing years with the support of District Agriculture Office (DAO), if required [EM: B-1 (cod) and B2 (a/b &c)]. Similarly, the CDC may seek support from District Forest Office (DFO) while fixing compensation for other trees.

2. Loss of Business in the Affected Structures 128. One time lump-sum grant equivalent to minimum one-month's income based on nature of business and types of losses to be paid on case-to-case basis [EM: B-3 (a)]. 3. Loss of Business Premises 129. One time cash assistance to the owners or renters equivalent to two months income based on the nature of business including shifting allowance on actual cost basis [EM: B-4 (a, b, & c)] .

15 Clause 14 of the Land Acquisition Act 1977 also provisions of land for land compensation, only if, Government land is available in the area. 16 Compensation Determination Committee (CDC) to be formed under the chair of Chief District Officer (CDO)

4. Loss of Wage by Employee 130. The employees affected due to resettlement impact on structure and business will be provided one time financial assistance equivalent to 90 days wages rate as determined by CDC [EM: B-5 (a & b)]. 5. Loss of Business from Commercial Kiosks 131. The affected commercial kiosk will be provided one time cash assistance equivalent to one months income on case to case basis based on type of business and average income from the business [EM: B-6 (a & b)].

D. Additional Assistance to Vulnerable Groups 132. Affected households having: (i) significant resettlement impacts, (ii) disabled member, (iii) household headed by women, (iv) ethnic occupational caste (dalit), (v) endangered ethnic groups are considered as vulnerable in this RP. The entitlement matrix provisions cash compensation for such vulnerable households for 90 days wage rate plus cash assistance equivalent to NRs. 10,000 per households for restarting their livelihood [EM: B-7 (a & b), and EM: B9 (a & b)] .

E. Livelihood Assistance and Skill Development Training 133. Households having more than 10% loss of total holdings of agricultural land/income, complete loss of residential structures, and vulnerable groups will be provided skill development training according to the choices of DPs and locally available training packages through the Supervision Consultant equivalent to NRs. 8000 per family. [EM: B-7 (c) & EM: B- 8 (c)]

F. Temporary Employment in the Project 134. Displaced persons from vulnerable and significantly affected households will also be encouraged for temporary employment for semi-skilled and non-skilled works in the project through the contactors [EM: B-7 (d) 8 EM: B-8 (d)].

G. Compensation for the Loss of Residential/Commercial Structures 1. Compensation for the Owners (titleholders/squatters/encroachers)

135. One time cash compensations for the affected structures used as residential, commercial and other utilities (e.g. toilet, well, cattle shed etc) will be paid to DPs at full replacement costs to be fixed by CDC at replacement value [EM: C-1 (a)]. The vulnerable squatters/encroachers will also be eligible to get assistance for the loss of structures/assets at full replacement costs [EM: C-2 (a)]. Owners of the affected structures will be allowed to take/reuse all the salvageable materials for rebuilding/rehabilitation of the structures without any deduction from the compensation amount [EM: C-1 (b) & EM: C-2 (b)]. 136. In the cases requiring rebuilding and rehabilitation, the DPs will be paid two months local agricultural wage for rebuilding/rehabilitation of structures plus transport allowance to cover the cost for moving structures including load-offload cost. The vulnerable squatters will also be paid for the loss of structures and transport allowance but they will not be eligible for the loss of land [EM: C-1 (c)]. 2. Compensation for the Loss of Residential/Commercial Structures by Tenants 137. The renters/tenants of the affected residential/commercial structures will be provided one month's rental financial assistance for moving to alternative premise for reestablishing their home/business plus transfer allowance to cover the cost of shifting [EM: C-3 (a & b)].

H. Loss of Cultural & Community Structures/Land/Facilities 138. The religious/cultural/community structures affected due to acquisition and construction activities will be constructed/rehabilitated or provided cash compensation to the recognized patron/custodian [EM: C-4].

I. Unanticipated Adverse Impacts 139. The Project Implementation Unit (PIU) will deal any unanticipated consequences of the project during and after the implementation phase in accordance to the principles of the Entitlement Matrix.

J. Relocation and Income Restoration 140. Relocation of households losing structures. The resettlement impact of the proposed Subproject is mainly concentrated on agricultural land and few structures, and the acquisition will be limited within thirty meter's Corridor of Impact (CoI). Therefore, the magnitude of impact is anticipated to be low; thus, may not require relocation. Most of the households likely to lose only small strips of land and will have options of relocating their structure in the remaining land occupied by them. The titleholders will be paid compensation for the losses of their land and structures. The non-titleholders will also be paid compensation for the loss of their structures as per the Government norms and this will enable them to relocate in the place of their choice. The displaced persons, in addition to the compensation will receive all benefits as mentioned in the entitlement matrix. Consultation with affected households revealed that they would opt for self-relocation and would require the Government to pay compensation at replacement value for their affected assets.

Table 62: Entitlement Matrix

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action Loss of Land A-1 Loss of Additional Person(s) with a) Cash compensation based on replacement cost Compensation DoR and CDO agricultural/ land and land records b) Subject to the availability of land, Displaced Persons for lost assets residential/ other assets verifying (DPs) may opt for replacement land of a similar commercial required for ownership productive quality and location instead of cash land by construction compensation landowners and c) All fees, taxes and other charges as applicable under improvement the relevant laws, incurred in the relocation and works resource establishment are to be borne by the project beyond the existing road A-2 Loss of Renter or share- a) Fifty percent cash compensation to the share cropper/ Compensation DoR and CDO agricultural/ cropper of land tenants of the affected plots as per the prevailing laws for loss of residential/ (LA Act Clause 20) tenancy commercial land by permanent tenants A-3 Loss of land Land Person(s) with a) Contractors to negotiate a contract agreement on the Compensation DoR /CDC/SC/ temporarily acquired land records rental rate with the owner for temporary acquisition of for temporary Contractor for the use of temporarily verifying land loss of assets contractors by ownership b) Project and the contractor to ensure that persons other during contractors than the owner affected as a result of temporary construction acquisition are compensated for the temporary period c) Land should be returned to the owner at the end of temporary acquisition period, and restored to its original condition or improved as agreed with the DP.

Loss of Income Generating Assets

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action B-1 Loss of Land Owner of crops a) Advance notice of 1 month to be provided to DPs to Cash income for DoR, CDO agricultural purchased or or trees harvest their crops lost crops/trees crops, and reclaimed for (includes crops b) Cash compensation for loss of agricultural crops at fodder trees, road /trees owned by current market value of mature crops, based on fruit trees and purposes encroachers/ average production timber trees squatters) c) Compensation for loss of fruit bearing trees for by owner average fruit production for next 5 to 15 years to be computed at current market value d) Compensation for loss of wood-trees at current market value of wood (timber or firewood, as the case may be)

B-2 Loss of Land Share cropper/ a) Advance notice of 1 month to be provided to DPs to Cash income for DoR, CDO, agricultural purchased or tenant harvest their crops lost crops/trees and crops, and reclaimed for b) Cash compensation for loss of agricultural crops at Supervision fruit and road current market value of mature crops, based on Consultant wood trees purposes average production by c) Compensation for loss of fruit trees for average fruit sharecropper production based on its type and fruit bearing years for / tenant the next 5 to 15 years to be computed at the current market value B-3 Loss of Business Owner of a) One-time lump sum grant; minimum one-month’s Short-term DoR, CDO and income by adversely business / income based on the nature of business and type of compensation Supervision structure affected by business losses assessed on a case-to-case basis for loss of Consultant owner / road tenants income tenants for construction conducting business

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action B-4 Loss of Structure on Owner /renter of a) One-time cash assistance equivalent to two-month’s Removal DoR, CDO and business acquired land business income based on the nature of business for re- /relocation Supervision premises by and/or legally establishing the businesses at the alternative premise assistance Consultant owners/renter confirmed b) Shifting allowance (transport plus loading/unloading s ownership charges) will be paid to affected businessmen (if rights applicable), on actual cost basis c) The amount of deposit or advance payment paid by the business tenant to the landlord will be deducted from the payment of the landlord

B-5 Loss of Income Employees of a) One-time financial assistance to hired employees Short-term DoR, CDO and wages by reduced business equivalent to 90 days wages to be computed on the compensation Supervision employees during period basis of local wage rates as determined by for loss of Consultant of Compensation Determination Committee (CDC) income readjustment formed under CDOs for respective district for respective categories. b) DPs who are eligible for semi-skilled and unskilled labor will be given priority employment opportunities in the Project’s implementation works B-6 Loss of Business Non-mobile a) One-time cash assistance: minimum one-month’s Short-term DoR, CDO and income by affected business income based on the nature of business and type of compensation Supervision kiosks temporarily operators on losses assessed on a case-to-case basis as for loss of Consultant during road footpaths/roadsi determined by CDC formed under CDOs income construction de b) Shifting allowance will be paid to the affected (if applicable), on actual cost basis

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action B-7 Additional Household Women-headed a) Cash assistance for 90 days at the local agricultural Income DoR, CDO and assistance to income households; wage rate for respective district restoration Supervision vulnerable affected as a Household with b) Special assistance of NRs. 10,000 to the affected assistance Consultant groups result of road Disable vulnerable persons for restoring their livelihoods construction members and

Elderly headed households; Ethnic Occupational Caste (Dalit); endangered groups; officially below poverty level households c) Skill development training per family to be organized by Supervision Consultant for any productive activity at the rate of NRs. 8,000 d) Temporary employment in the project construction work to DPs with particular attention to DPs who consider as vulnerable group by the project contractor to the extent possible

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action B-8 Livelihood Severely Family having a) Cash assistance for 90 days at the local agricultural Income DoR, CDO and assistance affected more than 10% wage rate restoration Supervision and skill Families loss of total b) One-time economic rehabilitation grant of NRs. 10,000 assistance Consultant development land or income c) Skill development training per family to be organized training to the holding affected by Supervision Consultant for any productive activity family having by the project; at the rate of NRs. 8,000 significant absentee loss of landlords will not d) Temporary employment in the project construction property and eligible for this work to DPs with particular attention to DPs who live income provision under poverty line by the project contractor to the sources extent possible e) This title will be implacable if the household who lose more than 10% will be dependent on the land and household occupation will be agriculture (this will be applicable after verification from DLRO during implementation phase) Loss of Residential, Commercial, Community Property

C-1 Loss of Land on Owners of the a) Cash compensation for loss of structures at Restoration of DoR and CDO residential which structure replacement cost. residence / structures property b) Owners of affected structures will be allowed to shop. and stands take/reuse their salvageable materials for commercial purchased or rebuilding/rehabilitation of structure without deducting structures by reclaimed for any costs. owners road including purposes squatters

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action c) In case of relocation, transfer allowance to cover cost of shifting (transport plus loading/unloading) the effects and materials will be paid on actual cost basis or on current market rates. d) Owner of the fully affected structure will be paid lumsum NRs 10,000 as displacement allowance e) In case of rebuilding/rehabilitation of structure, DP will be paid 2 months cash assistance at the local agricultural wage rate as a transitional allowance to cover lost of time and income. f) Assistance from the project to locate alternative plot for relocation; OR relocation to a resettlement site developed by the project if opted by DP C-2 Loss of Owners of the a) Compensation for structure (but not for land) at Restoration of DoR, CDO and residential structure replacement cost to the vulnerable person only. residence / Supervision shop. Consultant structures b) Shifting allowance will be provided to the structure and owner on the actual basis commercial c) Encroachers will be notified a time in which to remove structures by their assets to be affected. encroachers d) Encroachers who are vulnerable /below poverty line to be assisted case-by-case considering relevant facts on family income and existing assets C-3 Loss of Renters of a) Rental assistance equivalent to 1 month rent moving Assistance to DoR, CDO and residential / house / to alternate premise make alternative Supervision arrangement Consultant commercial commercial b) Transfer allowance to cover cost of shifting (transport structures by structure plus loading/unloading) personal effects paid on actual tenants cost basis or on current market rates (Renters)

Item Type of Result in Application Definition of DP Entitlements Responsibility No Losses Action C-4 Loss of Monastery/Tem a) Complete rehabilitation/restoration by the Project; or, Replacement DoR, CDO and cultural & ple/ Religious cash compensation for restoring affected /restoration of Supervision community Tree/ community cultural/community structures and installations, to the structure /facility Consultant structures land/Graveyard recognized patron/custodian /land/facilities Unanticipated The EAs and project implementation authorities will deal with any unanticipated consequence of the project during and after project adverse impact due implementation in the light and spirit of the principle of the entitlement matrix. to project intervention or associated activity

Notes: (i) DP- Displace Person; (ii) DoR- Department of Roads; (iii) CDO-Chief District Officer, the core responsible authority to implement Resettlement activities in each administrative district of Nepal; (iv) LA Act - Land Acquisition Act 1977; (v) CDC-Compensation Determination Committee to be formed under the chair of CDO to implement RP • Considering the diverse cultures, races, languages and customs, the Constitution of Nepal, 1990, has recognized the endangered group (Bankariya, Kusunda, Kushbadia, Raute, Surel, Hayu, Raji, Kisan, Lepcha, Meche) and tribes in the country. The same norms has been followed in the interim constitution, 2007 • Official below poverty households having per capita less than NRs. 19261 was determined as below poverty households (Year 2010- 2011).

VIII. RELOCATION AND REHABILITATION

A. Need for Rehabilitation 141. In resettlement planning relocation, rehabilitation and income restoration are required if there is significant resettlement impact due to (i) acquisition of cultivating land in large scale (ii) displacement of structures, (iii) loss of business and employment, (iv) displacement of vulnerable households, and (v) relocation need of community assets/ properties,17 etc. 142. As the findings of detail census in the Subproject locations shows, there is significant of structures, loss on the livelihood and income/employment due to impact on 1245 different type of structures (residential, residential cum commercial and commercial structures). Of the total displaced households, having impact on their assets there are also identified 260 vulnerable households (Table 63).

Table 63: Displaced Household by Different Vulnerability Types

S.N. Vulnerable Categories No of Households

1 Women Headed Households 53 2 Households with Disable Members 11 3 Dalit Groups 74 4 Endangered Groups 0 5 Elderly Headed Households 57 6 Below Poverty line 65 Total 260 Source: Census Survey, July 2012

143. Similarly, implementation of the Subproject road also likely to affect different community property resources. like; Temples, Community schools buildings, Church, Police bit as well as some public utilities like community drinking water supply schemes, irrigation canal etc of fourteen VDCs of three districts. These community properties need to be relocated during the implementation phase in close coordination and collaboration with the local community. Therefore, the RP also provisions relocation, rehabilitation and income restoration strategies for the displaced persons as needed.

B. Rehabilitation Strategy 144. The rehabilitation strategy followed for this subproject is guided by the entitlement matrix provided in the project RP. The following specific measures have been provisioned in this RP for relocating/rehabilitating and restoring the significantly affected assets and DPs:

17 The involuntary resettlement requirements apply to full or partial, permanent or temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. (ADB SPS 2009, Page 44, paragraph 5)

1. Rehabilitation/Relocation Strategies for the Affect on Land 145. DPs having impact on land will be compensated at replacement cost to be determined by the Compensation Determination Committee (CDC) The nontitled will also be compensated for the loss of crops and tree at the rate to be fixed by CDC.

2. Loss of Residential/Commercial Structures 146. The compensation for the loss of residential/commercial structures will be as below:  Cash compensation for loss of structures at replacement value to be fixed by CDC.;  Two months local agricultural wage rate for rebuilding/ rehabilitation of structures.  Transport allowance to cover the cost of moving structures including loading/uploading of materials;  Squatters/encroachers, if vulnerable, will be eligible for compensation for the loss of structures and also entitled for transport allowance, but not be eligible for the loss of land;  Owners will be allowed to take/reuse the salvaged materials for rebuilding structures

3. Assistance for Tenants 147. There is a provision that the renter of house/commercial structures will receive a rental assistance equivalent to one month rent to moving to alternative premise for reestablishing house/business.

4. Income Restoration Assistance 148. Besides the compensation for land and structures, the following will be the income restoration assistance to the SPAF:  Family having more than 10 % loss of total land holdings or income will be considered as severely affected families. Such family will receive cash assistance equivalent to 90 days local wage rate and one time economic rehabilitation grant of Rs. 10,000.  Additional assistance to vulnerable groups. Such groups will receive cash assistance for 90 days at the local wage rate and special assistance of NRs 10,000 for restoring their livelihoods;  One time financial assistance to hired employees equivalent to 90 days wages rate as determined by CDC.  One time cash assistance of minimum one month to kiosk on the nature of business and type of losses assessed on case-to case basis.  Skill development training equivalent to NRs 8,000/ family will be provided to the DPs having more than 10% loss of total holding or income and to the vulnerable persons. RS will conduct need assessment and will organize skill development program according to the DPs.

5. Reconstruction of Cultural/Community Structures/Facilities 149. The project will reconstruct or rehabilitate the community /cultural structures or cash compensation will be provided to the recognized patron/custodian.

6. Unanticipated Adverse Impact 150. The project implementation authorities will deal with any unanticipated consequences of the project during and after project implementation according to the principle of Entitlement matrix.

IX. RESETTLEMENT BUDGET AND FINANCING PLAN 151. The Government will bear all the costs required to implement land acquisition and resettlement activities. Ministry of Physical Planning, Works and Transport Management and DoR are committed to set aside and provide the respective amounts of funds for RP implementation in an efficient and timely manner. MPPWTM and DOR will guarantee to meet unforeseen obligations in excess budget estimates. 152. Land Acquisition Act 1977 and Safeguard Policy Statement 2009 (ADB) are the core document to guide on resettlement activities including the valuation of affected assets and determining compensation rate.

A. The Preliminary Valuation and Cost Estimate 153. This RP has updated based on the enumeration of Displaced Persons (DPs) and their affected assets along the corridor of Subproject road by conducting detail census survey in the month of July 2012. The valuation of affected assets and compensation rate estimated for the loss of major assets (land and structures) is based on market rate subject to be finalized by CDC in accordance to the provision of Land Acquisition Act. The other costs required for financial assistance (e.g. loss of business, wage, assistance to vulnerable groups etc have been calculated based on Entitlement Matrix (EM) prepared for ADB funded Sub regional Transport Enhancement Project (STEP). Some of the basis considered for valuating affected assets and preliminary cost estimate for compensation is given in Table 64..

Table 64: Basis Considered for the Valuation and Cost Estimate for Key Assets S.N Cost Items Basis Taken

1 Cost for Land (i) Calculated the area of land to be acquired based on detail design and cadastral survey and (ii) calculated the rate of compensation at full replacement costs, i.e. market price, transaction costs, etc. subject to be determined by CDC.

2 Loss of Crops (i) Calculated the area of land to be acquired, and (ii) average quantity of major crops grown (ii), Calculated the cost of crops value based on the retail market price based on the rate of Ministry of Agriculture and Cooperatives subject to be determined by CDC

3 Loss of Fruit (i) Inventoried the affected fruit trees to be acquired (ii) Calculated the five Growing Trees year production based on yearly average annual production quantity (iii) allocated the budget based on the market price per unit and multiply for the five years production subject to be finalized by CDC.

4 Loss of Fodder (i) Inventoried the number of different types of fodder trees based on the Trees road design, (ii) Calculated the five year production based on yearly production after the consultation with local people, (iii) allocated the budget based on the market price per unit and multiply the five year production (Per unit cost is defined after the consultation with District Agricultural Official).

5 Loss of Timber (i) Inventoried the number of different types of timber trees, (ii) allocated Trees lump-sum cost to estimate the valued of affected timber trees in consultation with the DPs subject to be finalized by CDC Loss of 6 (i) Enumerated the number of structures by construction type (ii) estimated residential/ the value of each structure based on the rate defined after the consultation commercial with the district technical officials subject to be finalized by CDC. structures and associated utilities

154. Cost for land acquisition. The task of land valuation is a bit tricky in Nepal. There appear two different types of valuation systems; (i) based on Government rate, and (ii) based on current local market rate. As being practiced, Government rate use to be fixed by District Land Revenue Office (DLRO)18 in accordance to the location of land, type of land, the rate of land quoted on the current land transaction documents and land revenue paid by the public. However, in practice, generally land transactions do not reflect the actual negotiated amount in the official transaction document mainly to lessen the size of revenue amount payable to the Government. This sort of malpractices has been considered one of the constraints to the Government to be officially informed/updated about the current land price in local markets. In this sense, the Government land price may not always represent the market price. Generally, local market price is volatile and may radically differ depending upon the situations and urgency of client/customer's need for transactions. Consequently, land transactions used to be made only after bargaining between buyers and sellers, and some time even with the involvements of land brokers. Given the context, the valuation of affected land is calculated being based on the local market rate with the reference of transaction documents. Tables 65, 66, and 67 provide district wise summary of the estimated compensation for the loss of land (EM: A-1, 2).

Table 65: Estimated Compensation Cost for Land (Sunsari District) Area to be Market Price S. Ward Sheet Resettlement Cost VDC Compensated (Nrs./Sq. No. No. No. (NRS.) (Sq. M) Meter) 1 Barahakshetra 4 Nga 14,448 900 13,003,200.00

2 Barahakshetra 4 Gha 3,915 1,000 3,915,000.00

3 Barahakshetra 2 Kha 2,151 1,000 2,151,000.00

Total 20,514 19,069,200.00

Source: Census Survey, July 2012

18 There are District Land Revenue Offices (DLRO) in all (75) district and responsible for also fixing land price of the respective districts based on land transaction made in the district and update them annually.

Table 66: Estimated Compensation Cost for Land (Udayapur District) Area to be Market Price Ward Sheet Resettlement S.No. VDC Compensated (Nrs./Sq. No. No. Cost (NRS.) (Sq. M) Meter) 1 Mainamaini 9 Ta 9,725 400 3,890,000.00 2 Thoksila 1 Ga 14,856 700 10,399,200.00 3 Thoksila 1 Na 5,875 800 4,700,000.00 4 Thoksila 1 Ka 11,142 1200 13,370,400.00 5 Thoksila 2 Gha 3,456 2000 6,912,000.00 6 Thoksila 2 Ga 11,207 3500 39,224,500.00 7 Thoksila 2 Ka 2,984 800 2,387,200.00 8 Thoksila 2 Kha 4,838 800 3,870,400.00 9 Thoksila 7 Cha 3,740 800 2,992,000.00 10 Thoksila 7 Na 1,911 800 1,528,800.00 11 Thoksila 7 Ga 16,670 600 10,002,000.00 12 Thoksila 7 Kha 15,014 600 9,008,400.00 13 Thoksila 7 Ka 1,890 800 1,512,000.00 14 Thoksila 8 Ka 28,363 500 14,181,500.00 15 Thoksila 8 Gha 7,182 500 3,591,000.00 16 Basaha 5 KA 26,222 300 7,866,600.00 17 Basaha 6 Ka 39,806 300 11,941,800.00 18 Basaha 7 ka 9,812 1000 9,812,000.00 19 Basaha 7 Kha 10,174 700 7,121,800.00 20 Basaha 7 Ga 20,453 600 12,271,800.00 21 Tapeshowri 8 Ka 16,807 800 13,445,600.00 22 Tapeshowri 9 Ka 43,354 1300 56,360,200.00

Total 305,481 246,389,200.00

Source: Census Survey, July 2012

Table 67: Estimated Compensation Cost for Land (Saptari District) Area to be Market Price Ward Sheet Resettlement Cost S. No. VDCs Compensated (Nrs./Sq. No. No. (NRS.) (Sq. M) Meter) 1 Bharuwakhal 4 Ga 3298 400 1,319,200.00 2 Bharuwakhal 3 Kha 16089 5000 80,445,000.00 3 Bharuwakhal 4 Kha 5734 3000 17,202,000.00 4 Bharuwakhal 2 2 9337 2400 22,408,800.00 5 Bharuwakhal 1 1 10418 2200 22,919,600.00 6 Bharuwakhal 7 Ka 3019 1800 5,434,200.00

Area to be Market Price Ward Sheet Resettlement Cost S. No. VDCs Compensated (Nrs./Sq. No. No. (NRS.) (Sq. M) Meter) 7 Bharuwakhal 8 Ka 7450 1800 13,410,000.00 8 Bharuwakhal 9 Ga 903 1800 1,625,400.00 9 Kamalpur 6 Ka 4352 1650 7,180,800.00 10 Kamalpur 7 7 6944 1650 11,457,600.00 11 Kamalpur 8 8 5211 1650 8,598,150.00 12 Ghoganpur 5 Ka 3115 1200 3,738,000.00 13 Ghoganpur 4 4 15095 1200 18,114,000.00 14 Ghoganpur 3 3 5675 1200 6,810,000.00 15 Pipara Purba 1 1 4246 950 4,033,700.00 16 DharamPur 3 Kha 5023 1500 7,534,500.00 17 DharamPur 1 1 1319 1250 1,648,750.00 18 Dharampur 2 2 27761 1300 36,089,300.00 19 Dharampur 6 6 3432 700 2,402,400.00 20 Kanchanpur 6 6 5881 700 4,116,700.00 21 Kanchanpur 7 7 5303 700 3,712,100.00 22 Kanchanpur 9 Ka 24057 700 16,839,900.00 23 Dharampur 7 Ka 7537 700 5,275,900.00 24 Dharampur 6 6 14524 700 10,166,800.00 25 Rup Nagar 7 7 5061 2800 14,170,800.00 Total 200784 326,653,600.00

Source: Census Survey, July 2012

B. Compensation for the Loss of Income Generating Assets 1. Compensation Cost for the Loss of Agricultural Crops 155. In accordance to entitlement matrix (EM:B-1 (a & b) and B-2 (a & b), provision of cash compensation has been made for the likely loss of standing crops. The compensation cost has been calculated (Table 68) based on the area of land to be acquired, average quantity of major crops grown in the area, and average market rate based on a standard units prescribed by the Ministry of Agriculture and Cooperatives (MoAC) 19 . The compensation rate for the loss of standing crops, however, to be finalized by CDC with the support of District Agriculture Office (DAO) as needed. Table 68: Estimated Compensation Cost for Loss of Standing Crops Affected Agricultural Estimated Production Value of Lost Crops in Local Market Land Area (ha) (kg) (NRs.)

28.9509 94742.03891 2,505,751.82

Source: Census Survey, March, 2012

19 Statistical Information of Nepalese Agriculture 2007/2008, a publication of Ministry of Agriculture, Nepal & Selected Indicators of Nepalese Agriculture and Population, A brochures of the Ministry of Agriculture and Co- operatives, 2010 and consultation with relevant officers and the Ministry

2. Compensation Cost for the Loss of Private Trees 156. As provisioned in the entitlement matrix (EM: B-1 (c & d), and B-2 (a,b,c), compensation provision has been made for the loss of trees and plants. Generally, fixation of compensation rate for the trees/plants is done by CDC with the support of District Forest Office (DFO) for non-fruit trees, and District Agriculture Office (DAO) for fruit trees during the implementation phase. Therefore, the preliminary costs for the loss of trees have been calculated based on the consultation with the local community and officials of Ministry of Agriculture and Cooperatives and Department of Forest at the central level by adopting a thumb rule. However, the estimated cost has to be finalized by CDC during the implementation phase. Based on the census data, information on affected trees and plant with estimated compensation cost for the loss of trees has been summarized in Table 69 and the details of the cost estimation for private trees is given in the Annex 2.1 – 2.3. Table 69: Compensation Cost Estimate for the Loss of Private Trees/ Plants Types of Sunsari Udayapur Saptari Total S.N. Affected Total Amount No Trees No Amount No Amount No Amount Timber & Fuel 1 0 0 8 26,500.00 472 354,750.00 480 381,250.00 wood 2 Fodder 0 0 0 0 211 444,200.00 211 444,200.00 3 Fruits 0 0 366 2,511,350.00 1071 1,985,775.00 1,437 4,497,125.00 Grand Total 374 2,537,850.00 1,754 2,784,725.00 2,128 5,322,575.00

Source: Field Survey, July 2012 3. Additional Assistance to the Vulnerable Groups 157. Based on the census data, there are about 260 vulnerable households of different categories. The Entitlement matrix (EM: B-7 (a,b,c) and B-8 (a,b,c) provisions cash compensation for such vulnerable households equivalent to three Months wage rate plus cash assistance @ NRs. 10,000 (per household) for restarting their livelihood. However, additional assistance to such vulnerable groups need to be distributed only after the finalization of resettlement impact and its extent, and confirmation of the vulnerability of the households in close collaboration with the local communities and CDC. Table 70: Additional Assistance to Vulnerable Groups One Time One Time Financial Cash One time Assistance to Total Assistance at Special Vulnerable No of Family to get Additional S.N. the Local Assistanc Categories Households Enrolled in Skill Assistance Agricultural e (NRs.) Development (NRs.) Wage Rate [b] Training (NRs.) (NRs.) [a] [c] 1 Women Headed Households 53 1,431,000 530,000 424,000 2,385,000 2 Households with Disable Members 11 297,000 110,000 88,000 495,000 3 Dalit Groups 74 1,998,000 740,000 592,000 3,330,000 4 Endangered Groups 0 0 0 0 0 5 Elderly Headed Households 57 1,539,000 570,000 456,000 2,565,000 6 Below Poverty line 65 1,755,000 650,000 520,000 2,925,000 Total 260 7,020,000 2,600,000 2,080,000 11,700,000 Source: Census Survey, July 2012 [a] No. of HHs x 90 days x NRs. 300 [b] No. of HHs x NRs. 10, 000 [c] No. of HHs NRs. 8,000

4. Compensation for the Loss of Structures 158. Cost for private structures. There are ninety-one private structures going to be affecting in the Subproject road. As provisioned in the entitlement matrix (EM: C-1 (a.b) and C-2 (a,b,c), compensation cost for the affected structures have been calculated based on the measurement of the affected structures taken out during the field survey and construction type of affected structures. Furthermore the social survey team held consultation with local construction contractors, local community, and key stakeholders those who have constructed new houses within one year, to investigate the market rate of the construction work like; private housing and other structures. Based on these investigations the technical team members provided technical ideas to estimate cost of affected structures. Guidelines of the Department of Urban Development and Housing (DUDH) have also been followed while calculating the cost for affected structures.20 The structures were valued without deducting any depreciation in material use. The estimated cost for the private structure is presented in Table 66.

Table 66: Estimated Compensation Cost for Private Structures

Area (Square S.N. District Structure Number Amount (Nrs.) Meter)

1 Sunsari 78 4729 10,527,088.00 2 Udayapur 674 57021 143,914,071.00 3 Saptari 493 28237 148,801,464.00

Total 1245 89987 303,242,623.00 Source: Field Survey, July 2012

159. Displacement and transportation allowances. The displacement and transportation allowance covers the housing displacement and business displacement allowances. Households whose houses need to be relocated will receive a housing displacement allowance. Owners of commercial enterprises requiring relocation will receive a business displacement allowance. Estimated cost for the displacement and rehabilitation allowances is presented below Table 67. However, transportation allowance will not be estimated to the structure having partial loss.

Table 67: Displacement and Rehabilitation Allowances

Sunsari Udayapur Saptari Total Number S.N. Allowances Amount Amount Amount No. No. No. No. Amount (NRs.) (NRs.) (NRs.) (NRs.) House 1 displacement 73 730,000 436 4,360,000 236 2,360,000 745 7,450,000.00 allowance Transportation 2 27 270,000 109 1,090,000 189 1,890,000 325 3,250,000.00 allowance Business 3 22 220,000 171 1,710,000 228 2,280,000 421 8,420,000.00 displacement Total 122 1,220,000 716 7,160,000 653 6,530,000 1491 19,120,000.00

20 The Government of Nepal, Department of Urban Development and Housing (DUDH) is the authorized Government body for the valuation of structures through the Government Gazette (Nepal Rajpatra, Section IV, number 50, Date 2045/12/6 (1988). The Department regularly updates its rate based on current market price and provides basis for calculating the cost of different types of structures.

Source: Field Survey, July 2012

160. Allowances for the loss of employment. This allowances covers the employees short term support cost, who loses the employment opportunities due to this Subproject. As per the findings of Census survey there are fifty-seven employees going to be lose their employment opportunities. Displaced employees will be provided one time financial assistance equivalent to 90 days wage rate (Table 68).

Table 68: Displacement and Rehabilitation Allowances Total Amount No. of S.NO Types of Business Total Man days (NRs.) Employee Mandays*300 1 Rice Mill 7 630 189,000 2 Tailor 3 270 81,000 3 Gold Shop 3 270 81,000 4 Boarding School 4 360 108,000 5 Hardware shop 5 450 135,000 6 Moter Workshop 9 810 243,000 7 Color Lab/Photo Studio 6 540 162,000 8 Saloon 2 180 54,000 9 Film Hall 2 180 54,000 10 Medical/Hospital 5 450 135,000 11 Hotels/Restaurants 5 450 135,000 12 IME 1 90 27,000 13 Poultry Farm 2 180 54,000 14 Mobile Shop 3 270 81,000 Total 57 5,130 1,539,000 Source: Census Survey, July 2012

5. Costs for the Loss of Cultural & Community Structures/Land/Facilities

161. Costs for the loss of cultural and community structures/land/facilities. The field investigation and census survey shows that there is significant impacts on the public structures throughout the road alignment. Some of the structures are cultural types and other are public utilities. Hence, it is also considered for the rehabilitating and relocation of such structures. The Table 69 figures out the status of the public structures. Refer Annex- 3.21

Table 69: Costs for the Loss of Cultural & Community Structures/Land/Facilities Total Cost of Name of Structure Construction S.N. Settlement VDC District the Structure Owner Year (NRs.) 1 Bhagwati Mandir Pipaldanda Barahakshetra Sunsari 20,000 2042 Flood Control Chatara 2 Hydrokolik Awa Barahakshetra Sunsari 72,600 2069 Ghat Ghar Shree Mahakali 3 Sombare Mainamaini Udayapur 116,000 H.S. School Shree Mahakali 4 Sombare Mainamaini Udayapur 80,000 H.S. School

Total Cost of Name of Structure Construction S.N. Settlement VDC District the Structure Owner Year (NRs.) Shree Mahakali 5 Sombare Mainamaini Udayapur 56,000 H.S. School 6 School Dumrebote Thoksila Udayapur 75,000 7 Pratiksalaya Hattisunde Thoksila Udayapur 10,000 2060 8 Chautaro Kamala Bari Thoksila Udayapur 15,000 2055 9 Mandir Rampur Thoksila Udayapur 28,800 2059 Bhudha 10 BudhaChowk Thoksila Udayapur 25,000 2063 Chowk Bhudha 11 Pratikhyalaya Thoksila Udayapur 15,000 Chowk Bhudha 12 Pratikshyalaya Thoksila Udayapur 1,500 2053 Chowk 13 Church Sanibare Basaha Udayapur 106,600 2061 14 Temple Aambasi Tapeswori Udayapur 450,000 2058 15 Thana Rampur Thoksila Udayapur 456,000 2065 Jagata Adarsha Ma 16 Sanibare Basaha Udayapur 398,400 2069 Vi Jagata Adarsha Ma 17 Sanibare Basaha Udayapur 365,120 2062 Vi Jagata Adarsha Ma 18 Sanibare Basaha Udayapur 392,448 Vi Jagata Adarsha Ma 19 Sanibare Basaha Udayapur 358,138 Vi Jagata Adarsha Ma 20 Sanibare Basaha Udayapur 255,486 2069 Vi 21 Samudaik Aambani Tapeswori Udayapur 100,000 2068 22 Hanuman Mandir Phattepur Phaettepur Saptari 1,752,000 2039 23 Kamalapur VDC Bhagani Kamalapur Saptari 1,357,800 2039 24 Kamalapur VDC Bhagani Kamalapur Saptari 123,820 2066 Aadarsha 25 Police Bit Dharampur Saptari 65,280 2056 tole 26 Public Tab Kamala Bari Dharampur Saptari 5,000 2062

Goderdhan 27 Bairagi/Janata Ucha Phattepur Phaettepur Saptari 21,000 2057 Nabi

Pramaha Sasrasik 28 Phattepur Phaettepur Saptari 214,060 2060 Ban Office 29 Simabadi Phattepur Phaettepur Saptari 19,110 2065 30 Shree Janat Mabi Bhangeni Ghoghanpur Saptari 79,790 2065 31 Temple Baluwa Ghoghanpur Saptari 31,850 2064 32 Airfield Aadarsha Dharampur Saptari 74,176 2064 33 Oldage Home Aadarsha Dharampur Saptari 923,800 Total 8,064,778 Source: Census Survey, July 2012

6. Resettlement Plan Implementation and Management Cost 162. There are also several RP implementation activities that need to be carried out at Subproject level by the Project Manager (PM). Some of such activities are: (i) public

consultation, and information dissemination, (ii) organizing CDC meetings, and implement CDC decision, field verification, and updating RP, (iii) organizing and mobilizing Subproject Level Committees (SLC), (iv) Deed Transfer and so on. In order to ensure such expenses, RP implementation cost also been calculated and incorporated in resettlement budget (Table 70).

Table 70: Cost Estimate for Resettlement Implementation Activities

Estimated Costs S.N. Description of Tasks Quantity Rate (NRs.) (NRs.) Information dissemination about the project, 1 resettlement impacts, and 3 150,000 450,000 compensation provision 2 Organizing CDC meeting 15 15,000 225,000 and follow up activities 3 Organizing GRC meetings 24 10,000 240,000 and follow-up activities Establishing Sub-local level committees and their 4 mobilization (@NRs.15,000 20 15,000 300,000 per committee) Public notification of Affected assets and invitation to 5 receive compensation (@ 10 150,000 1,500,000 NRs. 150,000) Surveyor/Amin Mobilization for Field Verification and 6 Deed Transfer (NRs. 60,000 12 60,000 720,000 Per Man month) 7 Sub-total (1-5) - - 0 8 Contingency 10% - 3,778,500 Overall 7,213,500 Source: Census Survey, July 2012 7. Summary of Compensation and Resettlement Costs 163. The summary of resettlement implementation cost includes all the expenses required to compensate for the affected assets including rehabilitation/relocation costs and other financial assistance (Table 71). The summary cost also contains additional ten percent contingency amounts, and costs required for external monitoring and capacity building training. Descriptive text on capacity building and external monitoring is included in chapters 10 & 12 of this RP document.

Table 71: Summary of Resettlement Budget and Cost Estimate Udayapur Ref. Table/ S.N. Cost Item Sunsari (NRs.) Saptari (NRs.) (NRs.) Chapter Estimated Table 1 compensation for 19,069,200.00 246,389,200.00 326,653,600.00 9.2,9.3,9.4 private land Estimated 2 compensation for 2,537,850.00 2,784,725.00 5,322,575.00 Table 9.6 Private Trees Estimated 3 compensation for 10,527,088.00 143,914,071.00 148,801,464.00 Table 9.8 private Structures

Udayapur Ref. Table/ S.N. Cost Item Sunsari (NRs.) Saptari (NRs.) (NRs.) Chapter Estimated compensation for 4 92,600.00 3,304,492.00 4,667,686.00 Table 9.11 Community Structures Compensation for 5 the loss of standing 95,094.94 1,454,952.67 955,704.20 Table 9.5 crops Displacement & 6 Transportation 1,220,000.00 7,160,000.00 6,530,000.00 Table 9.9 allowance Additional 7 assistance to 765,000.00 7,335,000.00 3,600,000.00 Table 9.7 vulnerable groups RP implementation 8 2,404,500.00 2,404,501.00 2,404,502.00 Table 9.12 Cost External Monitoring 9 1,815,000.00 1,815,000.00 1,815,000.00 Annex-8 and Evaluation Skill development 9 150,000.00 250,000.00 250,000.00 Lumpsum training Loss of 10 0.00 486,000.00 1,053,000.00 Table 9.10 Employment Total RP Cost (NRS.) 38,676,332.94 417,297,941.67 502,053,531.20

US [email protected] (July 20,2012) 438507.1762 4731269.18 5692216.907

NRs. 958,027,805.82

Grand Total US $ @ 10,861,993.26 88.20

C. The Setup 164. The Land Acquisition Act 1977 will guide the institutional arrangement for RP implementation. The primary institutions will established at two levels: (i) central level, and (ii) district level. The Executing Agency (EA) and the Project Implementation Unit (PIU) will be stationed at central level, and there will be a Subproject level office at project location. Construction Supervision Consultant (CSC) assigned for the task of supervising the construction activities and RP implementation will support the Subproject office. Figure 5 provides the proposed institutional set-up for RP implementation activities. D. The Executing Agency 165. Ministry of Physical Planning, Works & Transport Management (MoPPWTM) will be the Executing Agency (EA), and Department of Roads (DOR) will be the implementing agency (IA). A Project Implementation Unit (PIU) will be established at Project Directorate (ADB) under the DoR to take the responsibility of overall implementation of the Subprojects activities under the SRCP.

E. The Project Implementation Unit 166. The PIU will be headed by Project Director (PD) of the DoR, Project Directorate Office (ADB). The PD will be supported by the Deputy Project Directors and other in-house staffs. The PD will also be responsible for implementing resettlement plan for all the Subprojects under the SRCP. The Consultant Social/Resettlement Specialist (SRS) of the

Construction Supervision Consultant (CSC) will support the PD on overall mechanism and process of resettlement implementation. 167. The SRS will support the PD on processing and implementing RP activities. He/she will maintain all the process documents and database related to RP implementation at field level and supplied to PIU. This includes; formats/inventories of affected assets and Displaced Persons (DPs), compensation payment status, record of grievances and resolved status and progress reports. The field level activities carried out by the consultant SRS will be regularly monitored by the PIU. The Geo-environment and Social Unit (GESU) under the DoR will also monitor the RP implementation activities under its regular monitoring program.

F. The Subproject Office 168. A field level Subproject office will be established under the PIU, headed by Project Managers (PM) with officers in the rank of Senior Divisional Engineer (SDE). The PM on behalf of the Executing and Implementing Agencies will; (i) Formally request, and support the Chief District Officer (CDO) to form a CDC for fixing compensation rates to the acquired assets, (ii) Coordinate and support the CDO on establishing a Grievance Redress Committee (GRC) to minimize the pressure of local grievances, and (iii) Establish Subproject Level Committees (SLCs) to facilitate the DPs on addressing minor grievances, (iv) Support the CSC and SRO on RP implementation activities, and carrying out other activities that might be required for RP implementation.

G. Construction Supervision Consultant 169. The Construction Supervision Consultant (CSC) to be recruited and appointed by the PIU also be made responsible for supporting RP implementation. The CSC through the consultant SRS will support the Subproject office and PIU on overall RP implementation activities. 1. Roles and Responsibilities 170. The consultant SRS will assist the Subproject Office on informing people about the likely resettlement impacts, provisions of compensation to the displaced persons for their affected assets and other resettlement assistance, and to solicit views of those affected by the Subproject regarding compensation and likely grievances. He/she will also assist the CDC on negotiating the compensation rate. He/she will regularly execute the RP implementation activities with the support of CDC, Subproject Level Committees (SLC), and other stakeholders and may seek support from the Project Manager (PM). The consultant SRS will be responsible in resolution of grievances at local level and assisting the GRC, PM and other stakeholder. Among others, the consultant SRS also will be responsible to: . Inform DPs and other affected persons about the entitlements and compensation provisions made in the RP, and payment methods; . Assist CDC on negotiating and determining the compensation rate for various affected assets; . Assist PM in the resolution of grievances at local level; . Identify vulnerable group and severely affected persons and recommend additional support and livelihood assistance and skill development training to them; . Keep and update all resettlement activities/data/reporting and submit progress report to PIU, DoR on monthly basis.

Figure 5: Institutional Setup to Implement the Resettlement Activities

GoN Ministry of Physical Planning , Works and Transport Management

Department of Roads External ADB Implementing Agency Monitoring

Project Directorate

Supervision (ADB) Consultant (SC) PIU SRCP  Project Director Social/Resettlement  Deputy Project Director Specialist (SRS)

Compensataion Subproject Office (SPO) Determination Committee Project Manager  CDO (Divisional Engineer)  CDLRO  PM  Representative of DDC  Represenative of DPs

Subproject Level Committee (as needed) to be represented by: Grievance Redress Committee (District) Consultant  DPs Social Mobilizer  Local representatives of CDO political parties DOR representative  Vulnerable groups  District level agencies and VDC representative other stakeholders as required

Grievance Redress Committee (District)

 CDO Displaced DOR representative Persons (DPs)  VDC representative atives of political parties Vulnerable groups

District level agencies

and other stakeholders as required 2. Institutional Capacity and Staff Training 171. Institutional capacity. As per the DoR existing organizational structure, there is Geo-Environment and Social Unit (GESU) under the Department of Roads (DoR) at the central level, which is responsible for overall monitoring of social, resettlement and

environmental aspects in road projects. At present, the unit comprises of one Senior Divisional Engineer, two Engineers and one Sociologist. Some of the main activities being carried out by the GESU include; . Preparing environmental and social guidelines/manuals; . Conducting training on environmental and social components; . Conducting and monitoring environmental, social and resettlement activities in different ongoing projects. 172. As far as the Resettlement is concerned, still there is lack of institutional mechanisms for resettlement planning, implementation, monitoring & evaluation. Currently, based on the system laid down in the Land Acquisition Act 1977, and experience gained from some of the implemented and ongoing projects, DoR has been carrying out resettlement activities in some projects supported by the consultants. However, DoR strength on resettlement planning, implementation, monitoring & evaluation still to be strengthened particularly in line with the prevailing Acts and ADB Safeguard Policy Statement 2009. 173. Staff training. As an approach to enhance DoR capacity on RP activities, a short- term (two days) training/workshop program has been proposed under the RP implementation program. The GESU, supported by a consultant will conduct capacity development program/workshop to the DoR staff and representatives of other stakeholders involved in RP implementation both at central and district level. The program will be organized right before mobilization to the field. Some of the key participants to be involved in the training/workshop at central level include Project Manager (PM) and engineer assigned for the Subproject, Social/Resettlement Specialist mobilized under Construction Supervision Consultant (CSC), staff involved from the contractors, and other relevant stakeholder involved in the Subproject. Similarly, some of the key persons to be involved from the Subproject level includes; members of GRC and SLC, representatives from the district level agencies (DDC, DLSO, DLRO, DFO, DAO and others), representatives of DPs, and local communities. Among other, the training/workshop will also cover the following topics: . Understanding about the Land Acquisition Act 1977, and ADB Policy Guidelines and differences between national and ADB policies, between country policy and laws; . Understanding of the RP policy, principles and procedures of land acquisition in the Subproject; . Understanding on the entitlements and compensation & assistance provisioned in the RP, and disbursement mechanisms; . Understanding about the RP implementation schedule and activities of the Subproject; . Understanding about the need of public consultation and participation to implement the RP, and grievance resolution; . Understanding of the monitoring and reporting requirements; . Understanding of the economic rehabilitation of the DPs; . Understanding about the likely issues and measures to address them

174. The cost estimate to implement to capacity development program/workshop is included in Annex 8 under the monitoring and evaluation chapter. 3. Resettlement Databank 175. All the information related to land acquisition, resettlement and relocation/rehabilitation activities, socioeconomic information of the DPs, inventories of

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Displaced Persons (DPs) and their affected assets, compensation distribution status, information on resolved and new grievances, and other associated information will be maintained and updated at Subproject level and supplied to the PIU at central level.

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X. IMPLEMENTATION SCHEDULE AND ACTIVITIES A. Implementation Schedule 176. As per the draft detail design report (submitted on July 2012), the Subproject has been planned to implement from the beginning of 2013. The procurement of civil works contractor and Construction Supervision Contractor (CSC) will be carried out in 2012. The RP implementation activities expected to start from the last quarter of 2012 and to conclude in the last quarter of 2012. The RP implementation activities mainly consist the tasks of compensation distribution and associated rehabilitation and resettlement activities. Table 72 provides tentative RP implementation schedule of the Subproject. The timeframe is based on the overall project implementation schedule included in draft detail technical report and will be updated in accordance to the changes likely to be made in the project implementation plan. B. Key RP Implementation Activities 1. Advance Actions 177. Upon the loan processing, DoR will initiate advance action such as; (i) establishment of Subproject office, (ii) recruitment of Project Manager (PM) and information dissemination to DPs and local community, (iii) formation of CDC, (iv) establishment of GRC, (v) selection of Construction Supervision Consultant (CSC), and establishment of Subproject Level Committees (SLC) as required. Some of key RP implementation process is described in the subsections below: 2. Mobilization of Construction Supervision Consultant 178. Project Implementation Unit (PIU) will mobilize Construction Supervision Consultant (CSC) to monitor the project construction activities and to implement the resettlement plan. The Social/Resettlement Consultant (SRS) to be mobilized by CSC will be responsible for implementing the resettlement activities in close coordination with the PIU, PM, CDC, including local communities and Displaced Persons (DPs). Some of the key tasks to be rendered for RP implementation are briefly discussed below: 3. Cadastral Survey and Updating Draft RP 179. Cadastral survey is the method of determining resettlement impact on land, structures, and other assets aligning with the reference of cadastral maps. It has to be carried out by land surveyor with the help of assistant surveyor and other resettlement team (e.g. enumerators, social mobilizers, and resettlement specialist). It is the main part of RP implementation activities and to officially delineate the scope and extent of land acquisition.

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Table 72: Resettlement Implementation Schedule

S.N Activities 2010 2011 2012 2013 2014 2015 2016 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q4 Q1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q1 Q 2 Q 3 Q 4 1 Formation of PIU, institutional arrangement and establishment of Sub-project Office 2 Public Consultation and Information Dissemination to DPs 3 Hiring and mobilization of Construction Supervision Consultant (CSC) also for construction and RP 4 Selectionimplementation and Mobilization of Contractors for Construction Works 5 Hiring and mobilization of Construction Supervision Consultant (CSC)for construction supervision and RP implementation 5.1 Cadestral Survey,RP updating and Submission to CDO to fix Compensation Rate 5.2 Formation of CDC and Notification DPs 5.3 Complain and Grievances by DPs and Decision on Grievances 5.4 Compensation Distribution and Ownership Transfer 5.5 Transfer of ownership and Land Acquisition 5.6 Skill Training 5.7 External Monitoring [a]

Notes: 1 The RP implementation schedule is tentative and may be changed in accordance to the project implementation schedule 2 [a] To be carried out right before the contractor mobilization to post implementation phase

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C. Finalization of Resettlement Cost 180. After the finalization of RP, the DoR will formally submit the updated RP to the CDO. The CDO in accordance to the Land Acquisition Act will form a Compensation Determination Committee (CDC) for the valuation of affected assets and fixation of compensation rate in accordance to Clause 13 of the Land Acquisition Act 1977. As provisioned in the Act, the members to be included in the CDC are: . Chief District Officer; . Chief of the District Land Administration Office or Land Revenue Office; . Chief of the Project office; . Representative of the respective District Development Committee (DDC), and other members assigned by Chief District Officer (CDO). 181. There is also practice of involving representative from DPs and local communities in CDC as observer. 182. While determining the compensation rate, the Act also ensures separate compensation rate for those having complete loss of land, and those having partial affect (Clause 13-3). Further, according to Clause 14 of the Act, there is also provision of land for land compensation (if Government land is available in the project area/VDC). In addition, to the provisions specified in different clauses, the Act through its Clause 16, ensures also to consider followings while determining the compensation rate: . Government guidelines, and policies published in different time; . Likely losses to the affected people; . Current market value of acquired land; . Value of affected structures, crops, land etc, and . Extent of losses caused due to relocation/shifting of Displaced people, while fixing the compensation rate. 183. The CDC members will review the RP and may seek support from other sectoral agencies in this process. Similarly, the Detail Measurement Survey (DMS) carried out during the feasibility, details design phase, and cadastral survey may be verified, and crosschecked with the DPs and other stakeholders as deemed necessary. Afterwards, CDO based upon the comments/suggestion made by CDC (after reviewing the RP), will determine the compensation rate. Depending upon the nature of comments made by CDC, the CDO may also ask to review and update the compensation cost before finalization. D. Compensation Distribution and Deed Transfer 184. A consensus between the CDO and PM will be made about the compensation distribution modality deciding whether compensation to be distributed by CDO office or by the Subproject office. In practice, generally the CDO use to nominate Project Manager as Compensation Distribution Officer, and authorizes the project itself for compensation distribution. However, the compensation distribution activities will be closely supervised and supported by the CDO. 185. The DPs, through the national and local newspapers and other media, will be notified about the venue, schedule and timing of compensation distribution. The notification will also content message about the (i) documents to be brought while applying for compensation (e.g. citizenship paper, ownership certificate, recommendation from VDC/Municipality office, need of spouses presence on the day of compensation etc), and (ii) available support and assistance from the subproject. In between, the Compensation Distribution Officer, will prepare necessary formats required for compensation distribution and maintaining records. Such formats also include; format of request letter for compensation, format to request to get clearance of the affected land to be submitted to District Land Revenue Office, and District Land Survey Office, instructions about the processes to be followed to process the

104 application for compensation). Such formats need to be made available to the DPs at free of cost. Compensation will be paid as per the prevailing Acts, prior to the actual possession of the acquired land and other assets. The project will provide adequate advance notification to the DPs and will pay their due resettlement benefits, including relocation and income restoration/assistance prior to start of construction work. However, considering the practical issues, CDC may also arrange to provide 50% compensation in advance to demolish the affected structures and remaining 50% only after demolishment. 186. Compensation will be distributed on each office day within working hours. The amount will be paid on cash or cheque depending upon the size of amount, availability of banking service in the area, and CDC decisions. The signed document will be kept properly and the copies of entitlement documents signed by DPs will be forwarded to District Land Survey Office and District Land Revenue Office for deed transfer. All the records of compensation distribution will be maintained in the formats as provisioned in prevailing financial Acts and Rules. E. Management of Unclaimed Compensation 187. As per the Land Acquisition Act 1977, all the unpaid compensation due to several reasons (e.g. lack of supporting official documents, absentee DPs, unsolved grievances, and court cases, etc) will be deposited in Government's fixed account for security and DPs will be paid their compensation upon submission of formal application with supporting documents. F. Time Duration for Compensation Distribution 188. As stipulated in Clause 9 Sub-clause 3 of the Land Acquisition Act 1977, the duration of compensation distribution days will be determined by CDC. Further, Clause 37 of the Act illustrates that the Committee may extend the period for additional three months, if DPs could not collect compensation due to several reasons (e.g. lack of budget, unsolved grievances, absentee, court cases etc). After termination of extended three months’ period, the amount will be deposited to Government's fixed account and will be paid to DPs from the office of CDO.

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XI. MONITORING AND REPORTING A. Monitoring and Reporting Need 189. DoR will hold overall responsibility for the implementation of compensation and resettlement measures, and for associated monitoring and reporting activities. It will be coordinated by the Construction Supervision Consultant (CSC) involves concerned stakeholders and project affected communities and as well as external agencies. 190. Monitoring and Reporting (M&R) is the tools for ensuring effective RP implementation. The RP implementation activities need to be monitored in different stages of project cycle. The frequency and nature of monitoring and reporting may varies in different phases. 191. Resettlement Plan (RP) implementation is a set of long-term activities that need to be carried out based on technical norms, legal process, and administrative steps with the involvement of different stakeholders including local community and DPs. Appropriate combination and coherence is essential between these elements for the successful implementation of RP. Monitoring and Reporting (M&R) plays a crucial role on stimulating different facets related to RP implementation as well as to provide appropriate back-up support. Monitoring and reporting through its periodic assessment and reporting with planned activities facilitates on obtaining necessary feedbacks for effective and timely implementation of RP. 192. The overall aim of the monitoring programme will be to measure the extent to which the goals of the RP have been achieved. This will be achieved through two broad components: • performance monitoring; • impact monitoring; and Indicators (the variables used to measure progress toward the goals of the RP) and targets (the quantified levels of the indicators to be achieved at a given point in time) will be established in consultation with affected communities and other key stakeholders. The following range of indicators will be established: • input indicators (to measure the financial, physical and human resources allocated for the attainment of resettlement and livelihood restoration goals); • output indicators (to measure the services/goods and activities produced by the inputs; e.g., compensation disbursements for acquired assets, and the construction of replacement services/facilities); • outcome indicators (to measure the extent to which the outputs are accessible and used, and the levels of satisfaction with services and activities produced by the inputs. e.g. the ways in which compensation was used by recipients, and changing local attitudes to project implementation); • impact indicators (to measure the key dimensions of livelihood restoration so as to determine whether the goals of the RP have been achieved; e.g., restoration and diversification of income levels across different social categories, the sustainability of income-generating activities and changes in literacy levels); and • process indicators (to measure and assess implementation processes; e.g., the functioning of liaison/participation structures, the levels of representation of different social categories and the processes by which conflicts and disputes are resolved).

B. Monitoring in the Subproject 193. The RP implementation activities implemented by Construction and Supervision Consultant (CSC) will be monitored on a regular basis both through (i) Internal Monitoring, and (ii) External Monitoring. The internal and external monitoring report will be submiited to ADB semi-anually.

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1. Internal Monitoring 194. Project Implementation Unit (PIU) with the support of Subproject Office (SPO) and Construction Supervision Consultant (CSC) will oversee and monitor the field level activities. The CSC will maintain records of all transactions in their Management Information System (MIS), followed by entitlement records, payment records signed by DPs and survey based monitoring of RP implementation progress on a monthly basis. Based on the record maintained by CSC office, the PM in the Subproject Office (SPO) will regularly monitor the RP implementation progress and report to PIU on quarterly basis. Among others, the internal monitoring will ensure: . Verification that there are no outstanding or unresolved land acquisition issues with respect to the project and that property valuation and economic rehabilitation has been carried out in accordance with the provisions of the plan; . Ensure the completion of information campaign and consultation with DPs; . Progress on compensation payment; . Value of entitlement received is equal to that of original approved cost; . Payment for all types of impact and losses; . Use of entitlement and check its misuse; . Status of relocation, if applicable; . Ensure all economic rehabilitation measures are implemented, as approved; . Effective operation of the Grievance Redress Committees both a Subproject and community level; . Funds for implementing land acquisition and economic rehabilitation activities are available in a timely manner, sufficient for the purposes, and are spent in accordance with the plan.

195. The SPO will also be responsible for monitoring the day-to-day resettlement activities carried out by the CSC and field monitoring. Baseline socioeconomic and census data provides necessary benchmark for field level monitoring. The field level monitoring will be carried out through: . Review of census information of DPs; . Consultation and informal interviews with DPs; . In-depth case studies; . Informal sample survey of DPs; . Key informant interview; and . Community public meetings

196. The central level GESU under the DoR will also carry out internal monitoring. Among others, the GESU monitoring will also be focused on process monitoring. This will be supportive to GESU to be familiar about the RP implementation possesses and on establishing a RP implementation and monitoring parameter within the department. Some of the key indicators applicable for process monitoring are given in Table 73.

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Table 73: Key Indicators for Process Monitoring

Key Indicators  On Information dissemination  Methods adopted to inform local people and DPs about the likely resettlement impacts, and mitigation measures to be adopted by the project  Types of information shared with DPs and local people  Effectiveness of the information dissemination activities on informing DPs and local people about the project, likely resettlement impacts, and mitigation measures  On updating resettlement impacts and RP  Whether the RP team visited each DP's house while updating resettlement impacts  Whether the RP team consulted significantly affected and vulnerable households?  Activities carried out by the resettlement team while updating resettlement impacts  Use of updated data on finalizing RP  Database management and updating process  Formats and inventories used for recording affected assets and DPs  Methods adopted to verify information on affected assets, DPs and human resource involved  Management system of official records, correspondence, meeting minutes, account keeping, bank statements etc  On local level grievances  Mechanism to address grievances and its effectiveness  Composition of Subproject Level Committees (SLC) and operation stations  Effectiveness of SLCs on addressing local level grievance and its strength and issues  On compensation distribution and deed transfer  Process adopted and format used to distribute compensation  Compensation payment record (signed by DPs) along with entitlement/official documents submitted by them and associated issues  Coordination with and support from sectoral agencies (District Land Measurement Office, District Land Revenue Office, Banks etc)  Evidence of spouse and joint owners' presence (as applicable) while paying compensation  Supports being provided to DPs in terms of updating ownership records, updating ownership records for sectoral agencies in the process of compensation payment;  Rehabilitation of DPs  Deed transfer status of compensated assets and associated issues/constraints  Other information as deemed necessary

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2. External Monitoring

197. External monitoring is required to supervise the overall monitoring activities carried out under the internal monitoring and to submit a biannual report to determine whether the resettlement goal have been achieved. The PIU will engage external monitoring agency within three months of loan approval. The external monitoring agency will monitor RP implementation intermittently. The key focuses of external monitoring will be: (i) initial verification of compensation distribution and (ii) bi-annual review of resettlement implementation. 198. External monitoring will be carried out through outside researcher or consulting agency or NGOs, or through independent consultants. The key activities that need to be considered in external monitoring have been summarized in Box 3. Some of the potential sources of external monitoring could be; consulting agency, university departments, independent consultants. The key objective of external monitoring includes; . Assess social and economic impact of land acquisition and economic rehabilitation of the DPs; . Verify the objective of enhancement or at least restoration of income levels and living standard of the DPs have been met; . Suggest modifications on RP implementation and economic rehabilitation, where necessary, to achieve the principles and objectives as set before; and . Make final ex-post evaluation to ensure all RP implementation activities have been completed; and all the records (including financial) are maintained

Box 3: Key External Monitoring Activities  Verification of internal monitoring  Review and verify the internal monitoring reports prepared by PIU  Review the Socioeconomic baseline census information and assess the social and economic impacts of resettlement and economic rehabilitation of the DPs;  Identification and selection of impacts indicators;  Consultation with DPs, officials, and local community for review the overall performance;  Verifying the objective of enhancement or at least restoration of income levels and standard of living of the DPs have been met;  Ensure the appropriateness of activities being carried out;  Declaration of RP implementation progress  Summing up the outcome of all entitlements distribution and resettlement activities in different stages as required;  Suggesting modification in resettlement and economic rehabilitation, where necessary in order to achieve the principles and objectives set forth in advance  Evaluation of actual operations of grievance committee  Levels of public awareness of grievance procedures;  Assess the need for appropriate and effective grievance redress process based on local context  Describe Lessons Learnt  Different lesson learnt that need to be considered while implementing RP in the future

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199. The external monitoring report will be determined whether or not resettlement goals have been achieved, whether livelihoods and living standards have been restored/enhanced, and suggestion and recommendations for improvement. The external monitoring agency will also carry out a final ex-post evaluation to ensure that all RP implementation activities have been completed. Any problems or issues identified are followed-up (including recommendation of mitigation measures and supplementary budget if required); and learning from such issues must be recorded which would help to deal with issues such as these more effectively. A sample Terms of Reference (ToR) for the external monitoring agency with cost estimate have been included in Annex 8.

C. Reporting Requirements 200. The CSC will prepare a monthly progress reports on resettlement activities and submit to the PIU, and Subproject office, on the basis of CSC monthly report and field level monitoring will prepared quarterly reports and submit to PIU and ADB. The EA consolidates the internal and external monitoring reporting and submits the reports to ADB semi-annually. A copy of monitoring report prepared by the external monitoring agency will also submitted to GESU. This will be helpful for GESU on determining the area to be focused on its regular monitoring program.

D. ToR for External Monitoring and Budget 201. The ToR for external monitoring with estimated budget is attached in Annex - 8 within this report.

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XII. COMPLEMENTARY RESETTLEMENT PLAN FOR KANCHANPUR MARKET AREA A. Background 202. DoR proposed Kanchanpur Market area to upgrading the existing condition of the road as a part of the EWH road. Since this section consists of 2.22 kms of existing earthen road, having 10 meters average width across the section of the alignment and having human settlement prevalent on both sides of the road alignment, DoR tried to bypass this Kanchanpur market area section because otherwise there may be heavy loss of private property like buildings and the land of the people. DoR proposed the alternative route bypass from Rupnagar VDC of Kasthamahal, thereby avoiding the human settlement, to connect the 2.22 km ahead from the Kanchanpur market area. However, due to the pressure of community people, local leaders, and social workers of the Kanchanpur market area, DoR could not ignore the people’s voice that the proposed EWH road be passed throughout the existing alignment of Kanchanpur market area. For this purpose the likely affected people are committed to make the completion of the Sub-project road successful. Therefore, as per the instructions of DoR, this resettlement plan is prepared and put as a complementary RP in a separate chapter. The DoR has final authority to select the best option between the two alternatives during the implementation of this Subproject.

B. Socioeconomic Profile and Information 1. Population Distribution of Displaced Household 203. The total displaced population of 252 households covered by census survey in three VDCs of the Saptari districts is 1621. Overwhelmingly majority of the displaced households (86.43%) of the Subproject area have been found concentrated in Kanchanpur VDC, followed by Dharampur VDC (7.53%), Jagatpur VDC (6.05%) are recorded for census survey respectively.. The sex wise population of displaced households in the Kanchanpur market area VDCs and average household size is summarized (Table 74)

Table 74: Distribution of affected Household and Population by VDCs

Population Average S.No. VDC Household % Male % Female % Total % HH Size

1 Dharampur 16 6.35 76 8.35 46 6.47 122 7.53 7.6

2 Jagatpur 15 5.95 51 5.60 47 6.61 98 6.05 6.5

3 Kanchanpur 221 87.70 783 86.04 618 86.92 1401 86.43 6.3

Total 252 100.00 910 100.00 711 100.00 1621 100.00 6.4

Source: Census Survey, September 2012

2. Caste/Ethnic Distribution of the Affected Households in Subproject VDCs. 204. The Caste/Ethnic composition of the likely to be displaced households in Kanchapur market area VDCs is characterized by heterogeneous in nature, comprising Braman/Chhetri, Dalit, Janajati, ethnic minority (Muslim) groups population (Table 75).

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Table 75: Caste /Ethnic Composition of Displaced Households by VDCs

S.No. VDC Bra /Chh Dalit Janajati Muslim Other Total 1 Dharampur 11 -- 1 3 1 16 2 Jagatpur 14 ------1 15 3 Kanchanpur 170 7 8 1 35 221 Sub Total 195 7 9 4 37 252 Source: Census Survey, September 2012

3. Summary of Caste/Ethnic Distribution of the Affected Households in Subproject VDCs. 205. The summary presented below indicates that Caste/Ethnic composition of the likely to be displaced households in Kanchanpur market area is also characterized by heterogeneous in nature, comprising Terai Brahamin/Chhetri, Kayastha, Rajput (76.59%), Ethnic Occupational Caste (Dalit) (2.78%) disadvantage Janajati, (Tharu) (2.38%), Hill Brahamin, Chhetri, Thakuri, Sanyashi (0.79%) and, Advantage Janajati (Newar) (1.19%), Religious Minorities (1.59%) respectively. Summary of Caste/Ethnic group is depicted in Table 76.

Table 76: Summary of Caste /Ethnic Composition of Displaced Households S.N. Caste/Ethnicity No of HHs Percent Hill Brahamin, Chhettri, Thakuri, Sanyashi and 1 2 0.79 others 2 Tarai Brahamin, Kayastha, Rajput 193 76.59 3 Advantage Janajati (Newar) 3 1.19 4 Disadvantage Janajati (IP) 6 2.38 5 Ethnic Occupational Caste (Dalit) 7 2.78 6 Religious Minorities 4 1.59 7 Others 37 14.68 Total 252 100.00 Source: Census Survey, September 2012

4. Family Type of Affected Households 206. As the census data reveals out of total interviewed affected households 99 (39.29%) belongs to nuclear family and 153 (60.71%) households belongs to joint families (Table 77).

Table 77: Family Type of the Displaced Households

S.N. Family Type Number % Remarks 1 Nuclear 99 39.29 2 Joint 153 60.71 Total 252 100.00 Source: Census Survey, September 2012

5. Displaced Person by Gender and Age 207. The total population of the census households is 1621 with an average household size of 6.4 people per household. Of the total population of displaced households, the proportion of economically active age groups is 66.75% followed by aged persons (10.06%), age group of 5-15 years (17.64%), and under five children (5.55%). Details of displaced persons by gender and age group are summarized in Table 78.

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Table 78: Displaced Persons by Gender and Age Group Male Female Total Age Group No of No of No of HHs % % % HHs HHs Less than 5 Years 50 5.49 40 5.63 90 5.55 5-15 Year 180 19.78 106 14.91 286 17.64 15-60 Year 594 65.27 488 68.64 1082 66.75 More than 60 Year 86 9.45 77 10.83 163 10.06 Total 910 100.00 711 100.00 1621 100.0 Source: Census Survey, September 2012

6. Literacy Status of Displaced Population 208. The overall literacy status of Displaced household reveals that 7.40% (n-120) population are illiterate, near about same percent 7.59 % (n-123) are just able to read and write. However, the highest percent 24.55% (n-389) population of displaced households have been found within SLC-10+2 level. The proportion of people obtaining higher education or above bachelor’s level has been found 18.08%. Women literacy status is comparatively low in compare to male literacy status. Table 79 provides the details.

Table 79: Literacy Status of Displaced Population

Literacy Status Male % Female % Total %

Illiterate 25 2.75 95 13.36 120 7.40 Can read and Write 29 3.19 94 13.22 123 7.59 Class 1 – 5 130 14.29 91 12.80 221 13.63 Class 6-10 215 23.63 161 22.64 376 23.20 SLC - 10+2 243 26.70 155 21.80 398 24.55 More than Bachelor 218 23.96 75 10.55 293 18.08 Less than 5 Years 50 5.49 40 5.63 90 5.55 Total 910 100.00 711 100.00 1621 100.00 Source: Census Survey, September 2012

7. Occupational Status of Displaced Population 209. Of the total economically active age group, 37.14% of the population of the census households are engaged in agriculture followed by housewives (24.12%), business (13.26%), service (9.13%) foreign employment (1.54%), wage labour (3.02%), unemployed (5.31%), Disabled (0.80%), others (5.55%) respectively (Table 80). Among them female involvement in agriculture and farm activities has e been reported to be slightly lower (42.5%) compared to male (30.24%). Female's extensive involvement in agriculture maybe considered as one of the indicators of their hardship (drudgery).

Table 80: Occupational Status of Displaced Population by Sex

Occupation Male % Female % Total %

Agriculture 387 42.53 215 30.24 602 37.14 Services 130 14.29 18 2.53 148 9.13 Business 201 22.09 14 1.97 215 13.26

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Occupation Male % Female % Total %

Wage Labour 42 4.62 7 0.98 49 3.02 Foreign Employment 25 2.75 0 0.00 25 1.54 House Wife 13 1.43 378 53.16 391 24.12 Unemployed 56 6.15 30 4.22 86 5.31 Disable 4 0.44 9 1.27 13 0.80 Other 2 0.22 0 0.00 2 0.12 Less than 5 50 5.49 40 5.63 90 5.55 Total 910 100.00 711 100.00 1621 100.00 Source: Census Survey, September 2012

8. Migration Trend of Displaced Households 210. Of the total family members in the census households, 5 affected households of Kanchanpur VDC have been reported migrated one member each and 24 households reported migrated two members each to other places. 2 affected households in Dharampur VDC reported two members theirs migrated somewhere to seek better job opportunities. As reported by the respondents the major destination is Kathmandu, other districts, India etc to seek employment opportunity. (Table 81).

Table 81: Migration Trend of Displaced Households One Member Migrated Two Member Migrated Total VDCs HHs HHs No. % No. % No. % Dharampur 0 0 2 7.69 2 6.45 Jagatpur 0 0 0 0 0 0 Kanchanpur 5 100.00 24 92.31 29 93.55 Sub Total 5 100.00 26 100.00 31 100.00 Source: Census Survey, September 2012

9. Vulnerable Households 211. Of the total displaced households interviewed during census (252 HHs) 4 households have been reported to be vulnerable of different categories. Among them women headed households is 1 number, followed by households with disabled members 1 number, households headed by elderly persons is 0 number, and Below Poverty level (BPL) households 2 numbers, Tables 82 provides the breakdown of affected vulnerable households by type of vulnerable categories by Subproject districts.

Table 82: Affected Households by Different Vulnerable Categories

Women Households with Elderly Member Below Poverty Total House Headed Disable Headed Level hold VDC Households Members Households Households[1] No % No % No % No % No %

Dharampur ------

Jagatpur ------Kanchanpur 1 100 1 100 - - 2 100 4 100

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Women Households with Elderly Member Below Poverty Total House Headed Disable Headed Level hold VDC Households Members Households Households[1] No % No % No % No % No % Total 1 100 1 100 - - 2 100 4 100 Source: Census Survey, September 2012

10. Average Annual Income and Poverty Status of Census Households 212. In line with the CBS criteria, average annual household income of the census households has been assessed in order to estimate the number of BPL households. Like an other area in the Subproject, Trade/business and Services have been reported as the main source of earning of census households in Kanchanpur market area too. The other sources of income of the census households are agricultural consumption, followed by wage labour, agricultural products foreign employment.

Table 83: Average Annual Household Incomes No of Respond Avg Income Source of Income Total Amount Per capita HHs % Amount /Perperson Agricultural Products 3,453,970 49 8.78 13,706.2 2,131 (Cash Income) Agricultural consumption 10,142,705 153 27.42 40,248.8 6,257

Vegetable Consumption 90,460 10 1.79 359.0 56

Fruit Selling 321,100 13 2.33 1,274.2 198

Livestock Selling 332,600 9 1.61 1,319.8 205

Livestock Products 138,900 5 0.90 551.2 86

Services 23,937,800 93 16.67 94,991.3 14,767

Labour 4,301,000 31 5.56 17,067.5 2,653

Trade/Business 31,114,000 129 23.12 123,468.3 19,194

Foreign Employment 3,378,000 17 3.05 13,404.8 2,084

Rent/Pension 2,688,800 41 7.35 10,669.8 1,659

Others 961,000 8 1.43 3,813.5 593

Total 80,860,335 58 144,911.0 49,883

Source: Census Survey, September 2012

213. Based on the CBS criteria of consumption requirement for minimum subsistence, out of 252 census households, 2 fall under the below poverty line List of the below poverty displaced households is included in Annex 5.1 – 5.4. under the list of vulnerable displaced households.

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C. Socio-Economic Profile of Displaced Indigenous People’s Households 214. Among the 252 total displaced households, only 9 households belong to Indigenous People’s (IP) with 45 population size. The proportion of displaced IP households is about 3.67% of the total affected households (245 HHs). The major ethnic groups of the displaced IP households are Tharucomprising 4 households, followed by, Barai -1 households, Dhanuk -1 households, Newar -3 households, respectively. Table 84 provides summary of displaced IP households by ethnicity and population composition.

Table 84: Displaced IP Households by Ethnicity and Population Composition Caste /Ethnicity No of HHs Male Female Total Tharu 4 14 13 27 Barai 1 4 1 5 Dhanuk 1 3 0 3 Newar 3 5 5 10 Total 9 26 19 45 Source: Census Survey, September 2012

11. Displaced Indigenous Person by Age Group 215. The total population of the displaced indigenous household is 252 with an average household size is 6.43. Among them, the proportion of economically active age groups is 75.6% (34 persons) followed by 15.6% aged groups (7 persons), age group of 5-15 years, and 8.9% (4 persons) more than 60 years. Details of displaced persons by gender and age group is summarized in Table 85.

Table 85: Displaced Indigenous Person by Age Group Less than More than Caste/Ethnicity 5-15 Year 15-60 Year Total 5 Years 60 Year Tharu 0 2 24 1 27 Barai 0 1 4 0 5 Dhanuk 0 1 2 0 3 Newar 0 3 4 3 10 Total 0 7 34 4 45 Percentage 0.0 15.6 75.6 8.9 100.0 Source: Census Survey, September 2012

12. Literacy Status of Displaced Indigenous People (IP) 216. Of the total Displaced Indigenous People’s Population (45 persons) 11.1% (n-5) persons are illiterate, and the same percent (n-5) persons are just able to read and write. However, the highest percent 28.9% (n-13) population of displaced IP households have been found studying in between SLC – 10+2. The proportion of people obtaining higher education or above bachelor’s level has been reported to be 26.7% (n-12). Collectively, as the census data shows, there is no significant difference between the IP and all displaced households in terms of literacy and attainment of formal education. (Table 86). Please refer the education status of the displaced household under profile information of the displaced households.

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Table 86: Literacy Status of Displaced Indigenous People (IP) Population

- 10+2

Caste/

- Total

Ethnicity

Years

than 5 5 than

1 Less Less 1

Illiterate

Can read Can Bachelor

and Write and

Class 1 Class

More than than More

Class 6 Class SLC SLC Tharu 0 1 0 0 4 2 0 7 Barai 0 0 0 3 1 1 0 5 Chaudhary 1 3 1 2 4 9 0 20 Dhanuk 2 0 1 0 0 0 0 3 Newar 2 1 2 1 4 0 0 10 Total 5 5 4 6 13 12 0 45 Percentage 11.1 11.1 8.9 13.3 28.9 26.7 0.0 100.0 Source: Census Survey, September 2012

D. Occupational Status of Displaced Indigenous Population 217. Of the total displaced indigenous population (45 persons), have been found engaged in different type of income generating activities. Among them, 19 persons (42.22%) are engaged in agriculture followed by 10 females (22.22 %) working as a housewives , 8 persons (17.78%) in service, 5 persons (11.11%) in business, 2 persons (4.44%) in wage labour, respectively. Table 87 provides details of the occupational status of displaced population of IP. Like in education status, there are also no significant differences reported between the IP and all displaced households in terms of their involvement in agriculture and other income generating activities. Please refer the education status of the displaced household under profile information of the displaced households.

Table 87: Occupational Status of Displaced Indigenous People

Caste/Ethnicity Total

riculture

Years

Wages

Disable

Foreign

Services NoWork

Business

House Wife

Less than Less 5 Emplacement Tharu 4 0 0 0 0 1 0 0 0 5 Barai 5 8 1 0 0 6 0 0 0 20 Chaudhary 1 0 0 1 0 1 0 0 0 3 Dhanuk 5 0 4 0 0 0 1 0 0 10 Newar 4 0 0 1 0 2 0 0 0 7 Total 19 8 5 2 0 10 1 0 0 45 Percentage 42.22 17.78 11.11 4.44 0 22.22 2.22 0 0 100 Source: Census Survey, September 2012

13. Average Annual Income and Poverty Status of Census Households 218. In line with the CBS criteria, average annual household incomes of the census IP households have been assessed in order to estimate the number of BPL households. Foreign employment and Trade/business have been reported as the main source of earning of census households. The other sources of income of the census households are Services followed by labor, agricultural consumption, and agricultural products.

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Table 88: Average Annual Income and Poverty Status of IP Census Households No of Respondent Avg Income Total Source of Income Per capita Amount HHs % Amount /Perperson

Agricultural Products (Cash 123,600 2 10.5 490.5 2,746.7 Income) Agricultural consumption 408,000 6 31.6 1,619.0 9,066.7

Vegetable Consumption 0 0 0.0 0 0.0

Fruit Selling 0 0 0.0 0 0.0

Livestock Selling 25,000 1 5.3 9.2 555.6

Livestock Products 18,000 1 5.3 71.4 400.0

Services 1,812,000 4 21.1 7,190.5 40,266.7

Labour 75,000 1 5.3 297.6 1,666.7

Trade/Business 360,000 2 10.5 1,428.6 8,000.0

Foreign Employment 0 0 0.0 0 0.0

Rent/Pension 156,000 2 10.5 619.0 3,466.7

Others 0 0 0.0 0 0.0

Total 2,977,600 19 100 156,715.8 66,168.9 Source: Census Survey, September 2012

E. Findings of Resettlement Census Survey 219. The detailed resettlement survey carried out across the Subproject section of Kanchanpur market area in September 2012-collected socio-economic information of the displaced persons and determined the number of displaced households and their affected assets. Based on the findings of the census survey 1621 persons of 268 (census household 252) households are likely to be displaced due to impact on their 4.06 ha of private land and 242 structures. Table 89 provides summary on the key resettlement impact of the Subproject road.

Table 89: Summary on the Key Impact of the Subproject No of No. of Displaced Affected Land Unit Displaced Persons HHs Total Private Land being Affected 4.06 ha 268 1621 (Ha) Total Government/Aailani Land (Ha) - - - Total 4.06 268 1621 Affected Structure Residential (Number) 127 107 657 Commercial Only (Number) 3 3 21 Residence Cum Commercial 47 45 266 (Number) Rental 46 39 241 Other Structures(like Shed/Tanti/ 19 18 113 Toilet etc) Total 242 212 1298 Source: Census Survey, September 2012

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14. Ownership Type of Affected Land 220. The census survey listed a total number of 268 official land parcels are likely to be affected due to the Subproject within the Kanchanpur market area. Among them, 242 displaced land parcels have impact on their land and structure. In the 268 displaced households, 26 households having impact on land only. (see table 1.3 above). Loss of Income Generating Assets.

15. Impact on Private Trees 221. Based on the inventory of affected assets there are 36 private fruit trees that are going to be affected during the road construction. Out of 36 fruit trees, Kanchanpur VDC alone is going to be lose lost 29 trees as reported in the census survey. Dharampur VDC is losing 5 fruits trees and 2 trees are going to be lost by the Jagatpur VDC. (Table 90) The details of the affected trees are presented in the Annex 4.2.5.

Table 90: Description of Affected Trees

Timber and Fuel S. No. VDCs Fodder Fruit Total Wood 1 Dharampur 0 0 5 5 2 Jagatpur 0 0 2 2 3 Kanchanpur 0 0 29 29 Total 0 0 36 36 Source: Census Survey, September 2012

16. Loss of Tenancy on the Affected Land 222. Out of 268-registered land parcels two affected land parcels have been found being cultivated by official/registered tenants/sharecroppers. For details, this should be verified during implementation of the subproject road.

F. Loss of Structures 223. The upgrading work in the Subproject road affects altogether two hundred forty-two (242) structures owned by 212 affected households. Out of 268 affected households, censuses survey could be conducted in 252 households. However, it was found during field survey that district land survey office, Saptari, had developed the block survey system, where there are more than hundred land parcels consist in a single block. Therefore, the data of affected structures and land parcels are more or less same. Further analysis of the affected structures has been incorporated in the following sub-sections and inventory of the affected structures have been incorporated in Annex 4.2.6

17. Construction Type of Affected Structures by VDC 224. As depicted in the table below, altogether 242 structures are likely to be affected. A total number of 224 different types of structures have been located in Kanchanpur VDC, followed by 13 structures in Dharampur VDC, and 5 structures in Jagatpur VDC respectively. By types 83 (nos) are semi modern, 25 (nos) Shed, 95 (nos) traditional, 37 (nos) modern, and 1 (nos) households toilets respectively. Table 91 figures out the types of the affected structures by VDCs.

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Table 91: Types of Affected Structures by VDC

Structure Type Dharampur Jagatpur Kanchanpur Total Stone/brick wall with cement mortar/RCC 6 0 31 37 (Modern) Stone mud mortar with slate/zinc sheet roof 5 0 78 83 (Semi-Modern) Stone mud mortar with 2 5 88 95 straw roof (Traditional) Shed 0 0 25 25 Bamboo bared and wood 0 0 1 1 fenced (Tanti) Toilet 0 0 1 1

Total 13 5 224 242 Source: Census Survey, September 2012 Structure Type: Traditional (stone mud mortar with straw roof)-1, Semi-modern (stone mud mortar with slate/zinc sheet roof)-2, Modern (stone/brick wall with cement mortar/RCC)-3, Hut-4, (Household Toilet)-5, Kiosks and Tanti (bamboo bared and wood fenced)-6

18. Ownership Type of the Affected Structures by Caste/Ethnicity 225. The table below shows that the likely affected structures are 242, which have been owned by 193 households of different caste/ethnic group in the Kanchanpur market area. Of the total affected structures, a majority of structures 78.2% (n-151) belongs to Terai Braha/Kayastha/Rajput, followed by other excluded 34% (n-31), Ethnic Occupational Caste (Tarai Dalit) 3.6% (n-7) Religious Minorities 1.0% (n-2) and Disadvantaged Janajati 0.5% (n- 1). Table 92 summarizes the ownership of affected structures by different caste/ethnic groups.

Table 92: Ownership of Affected Structures by Caste/Ethnicity

No of Dharampur Jagatpur Kanchanpur Total Caste Affected Structures No % No % No % No % Hill Braha/ Chh/ Thakuri/ 1 0 0 0 0 1 0.6 1 0.5 Sanyasi Terai Braha/ Kayastha/ 193 9 75.0 3 100 139 78.1 151 78.2 Rajput Ethnic Occupational Caste 9 0 0 0 0 7 3.9 7 3.6 (Terai Dalit ) Disadvantaged Janajati 2 1 8.3 0 0 0 0 1 0.5 Religious Minorities 2 2 16.7 0 0 0 0 2 1.0 Other Excluded 35 0 0 0 0 31 17.4 31 16.1 Total 242 12 100 3 100 178 100 193 100 Source: Census Survey, September 2012

19. Extent of Loss of the Affected Structures 226. The census data reveals that out of 242 affected structures 92.5% (n-224) are going to be affected fully, whereas 7.5% (n-18) are only partially affected. All of the affected structures/houses have impact on the main structure and are modern, semi modern and traditional by construction type. Therefore, all most of them will have complete loss and would not lived future Table 93 figures out the types of affected structures and the extent of loss by VDC and type of use.

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Table 93: Extent of Loss of Affected Structures by VDC and Type of Use Commercial Residential Commercial Other cum Rental Structure Only Structure

Residential

VDC

Loss Loss Loss Loss Loss

Total Total Total Total Total

Partially Partially Partially Partially Partially Partially

Fully Loss Fully Loss Fully Loss Fully Loss Fully Loss Fully Dharampur 2 7 9 0 0 0 0 2 2 0 0 0 0 2 2

Jagatpur 0 3 3 0 0 0 0 1 1 0 1 1 0 0 0

Kanchanpur 12 103 115 0 3 3 2 42 44 1 44 45 1 16 17

Total 14 113 127 0 3 3 2 45 47 1 45 46 1 18 19 Source: Census Survey, September 2012

20. Extent of Loss on Structures by Caste and Ethnicity 227. The following table shows that the likely affected structures are 242, which have been owned by 193 households of different caste/ethnic groups in the Kanchanpur market area. Of the total affected structures, a majority of structures 78.2% (n-151) belongs to Terai Braha/Kayastha/Rajput, followed by other excluded 34% (n-31), Ethnic Occupational Caste (Tarai Dalit) 3.6% (n-7) Religious Minorities 1.0% (n-2) and Disadvantaged Janajati 0.5% (n- 1) respecively. 228. Of the total affected residential structures (n-127) 1 nos belongs to Hill Brah/Chh, followed by 98 nos Terai Brah/Kayastha/Rajaput, 1 nos Ethnic Occupational Caste (Tarai Dalit), 2 nos Disadvantaged Janajati (IPs), 7 nos Religious Minorities, 18 nos Other Excluded Group respectively. Moreover, of the total affected commercial structures (n-3) all belongs to Terai Brah/Kayastha/Rajput. Similarly, of the total affected commercial/residential structures (n-47) belongs to Terai Brah/Kayastha/Rajput and 5 belongs to Other Excluded Groups. Out of total 48 nos of rental structures, 41 nos belong to Terai Brah/Kayastha/Rajput, followed 2 nos by Religious Minorities, 5 nos Other Excluded Group respectively. Among 17 nos remaining Other types of structures, 9 nos belongs to Terai Brah/Kayastha/Rajput, 7 nos to Other Excluded Groups and 1 nos belongs to Ethnic Occupational Caste (Tarai Dalit). Table 94 figures out the extent of loss of affected structures by caste and ethnicity.

Table 94: Extent of Loss of Affected Structures by Caste and Ethnicity Commercial Residential Commercial Other cum Rental Structure Only Structure

Residential

Caste / Ethnicity

Total Total Total Total Total

FullyLoss FullyLoss FullyLoss FullyLoss FullyLoss

PartiallyLoss PartiallyLoss PartiallyLoss PartiallyLoss PartiallyLoss

Hill 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 Braha/Chh/Thakuri/Sanyasi Terai 12 86 98 0 3 3 2 40 42 1 40 41 0 9 9 Braha/Kayastha/Rajput

Disadvantaged Janajati 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1

Religious Minorities 0 2 2 0 0 0 0 0 0 0 0 0 0 0 0

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Commercial Residential Commercial Other cum Rental Structure Only Structure

Residential

Caste / Ethnicity

Total Total Total Total Total

FullyLoss FullyLoss FullyLoss FullyLoss FullyLoss

PartiallyLoss PartiallyLoss PartiallyLoss PartiallyLoss PartiallyLoss

Ethnic Occupational Caste 0 7 7 0 0 0 0 0 0 0 2 2 0 0 0 (Terai Dalit )

Other Excluded 1 17 18 0 0 0 0 5 5 0 5 5 1 6 7

Total 14 113 127 0 3 3 2 45 47 1 47 48 1 16 17 Source: Census Survey, September 2012

21. Present Use of Affected Structures 229. The census data indicates that all together 242 number of different types of structures of 212 households are likely to be affected. By category of use, 127 residential structures owned by 107 households are going to be affected, followed by 47 commercial cum residential structures owned by 45 households, 3 commercial structures owned by 3 households and 46 rented structures owned by 39 households among the total structures. Kanchanpur VDC has significant impact on all types of structures (n-222), likewise Dharampur VDC has second highest impacts (n-13) on all types of structures and the Jagatpur VDC is in the third position of structural impacts of all types (n-5). The following Table 95 provides the details of the types of affected structures by VDC and types of use.

Table 95: Distribution of Affected Structures by VDC and Type of Use Commercial Residential Commercial Rented out Other cum Structures Only Structures Structures

Residential

VDCs

HHs HHs HHs HHs HHs

Structure Structure Structure Structure Structure

Numberof Numberof Numberof Numberof Numberof

Dharampur 9 8 0 0 2 2 0 0 2 2

Jagatpur 3 2 0 0 1 1 1 1 0 0

Kanchanpur 115 97 3 3 44 42 45 38 17 16

Total 127 107 3 3 47 45 46 39 19 18

Source: Census Survey, September 2012

22. Present Use and Ownership of the Affected Structures by Type 230. Of the total different types of affected structures (n=242), all the structures are to be found constructed in the private land.

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23. Types of Business and Other Enterprises Operated in Non-residential Structures 231. The affected both residential and residential cum commercial structures have been used by the title owners for residential purpose and residential cum business purposes. However, several business and income generating activities have been carried out in these commercial and commercial cum residential structures. Table 96 summarizes the types of business and other enterprises being operated in such structures.

Table 96: Types of Business and Other Enterprises Operated in Non-residential Structures Commercial Commercial cum S.No. Business Type Rental Total Only Residential 1 Glossaries -- -- 1 1 2 Money Transfer -- 1 -- 1 3 Stationary -- 1 2 3 4 Clothing -- 6 10 16 Clothing with 5 -- 2 -- 2 Glossaries 6 Cold Drinks -- 1 -- 1 7 Cosmetic -- 2 3 5 8 Cyber -- 1 -- 1 9 Cycle -- 1 -- 1 10 Cycle Maintenance -- -- 1 1 11 Electronics -- -- 1 1 12 Fancy -- 3 5 8 13 Fruit 1 1

14 Furniture 1 1 1 3 15 Glossaries 1 9 7 17 16 Gold -- 5 5 10 17 Hajam -- -- 3 3 18 Hardware -- 5 -- 5 19 Wholesale -- 1 -- 1 20 Hotel -- 1 8 9 21 IME -- -- 1 1 22 Iron Shop -- -- 1 1 23 Medical -- 2 1 3 24 Mobile -- 1 2 3 Mobile and TV service 25 -- -- 1 1 Center 26 Paint/Electrical -- -- 1 1 27 Pan -- -- 2 2 28 Photo Studio -- 1 1 2 29 Plastic shop -- 1 -- 1

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Commercial Commercial cum S.No. Business Type Rental Total Only Residential 30 Radio Service -- 1 -- 1 31 Rice Mill 1 -- 1

32 Saving and Credit -- 1 -- 1 33 Shoes -- 2 3 5 34 Shoes with Cloths -- 1 -- 1 35 Store -- -- 2 2 36 T.V. Showroom -- -- 1 1 37 Tailors -- 4 5 9 38 Utensils -- 1 2 3 39 Watch -- 1 -- 1 Total 3 57 70 130 Source: Census Survey, September 2012

24. Loss of Employment 232. Impacts on commercial and residential cum commercial structures are likely to affect on 7 employees associated with such structures working in the hotels operated in affected commercial structures. As per the findings of census survey, the estimated days of employment loose is about 90 days and the average loss amount is NRs. 5000 per persons per month. (Table 97).

Table 97: Use of Affected Commercial and Residential Structures by Purpose No. of Transitional S.No Types of Business Employee Period (Days) Total Man days 1 Cyber 1 90 90 2 Oil Depot/Salt 1 90 90 Mobile and TV 3 Service Center 1 90 90 4 Gold Shop 2 90 180 5 Rice/Oil Mill 1 90 90 6 Hotel 1 90 90 Total 7 90 630 Source: Census Survey, September 2012

25. Relocation and Rehabilitation of the Displaced Households 233. Based on the consultation with the displaced persons, households likely to have complete loss of their structures have opted for compensation and other assistance to relocate/ rehabilitate their displaced structures. The entitlement matrix of the resettlement plan have provisioned cash compensation to the households displaced due to loss of their structures (both titleholders and vulnerable squatters) based on current market value to be fixed by the CDC [EM: C-1 (a)] and [EM: C-2 (a)]. Owners of the affected structures will be allowed to take/reuse all the salvageable materials for rebuilding/rehabilitation of the structures without any deduction from the compensation amount, For those requiring rebuilding/ rehabilitation, will also be paid two months local agricultural wage for rebuilding/rehabilitation of structures plus transport allowance to cover the cost for moving structures including load-offload cost. The vulnerable squatters will also be paid for the loss of structures and transport allowance but they will not be eligible for the loss of land [EM: C-

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1 (c)]. Similarly, The renters/tenants of the affected commercial and residential/commercial structures will be provided one month's rental financial assistance for moving to alternative premise for reestablishing their home/business plus transfer allowance to cover the cost of shifting [EM: C-3 (a & b)]

26. Loss of Community Property Resources 234. All the efforts were made during the detail design to minimize resettlement impact on the community property resources. In this approach, some of the public utilities like drinking water supply systems, irrigation canals, temples, rest places etc have been saved through consultation with the local community. However, impact on Hanuman Mandir located in Kanchanpur VDC of ward no 4 could not be saved. The Hanuman mandir which is remaining as a community property since long time needs to be relocated during the implementation phase in close coordination and collaboration with the local community. The resettlement plan ensures budget to relocate to such community resources. The following Table 98 provides the details of loss of community property resources in the subproject district.

Table 98: Costs for the Loss of Cultural & Community Structures/Land/Facilities

Name of Total Cost of Construc S.N. Structure Settlement VDC District the Structure tion Year Owner (NRs.) Hanuman 1 Kanchanpur Kanchanpur Saptari 400,000.00 2039 Mandir 400,000.00 Total Source: Census Survey, September 2012

G. Resettlement Impact on Indigenous/Ethnic Peoples 235. As the socio-economic information reveals, the total number of displaced households (268 HHs) also included 9 numbers of displaced indigenous households with 45 population. The number of displaced IP households having different type of resettlement impact is also given in Table 99.

Table 99: Displaced IP Households by Ethnicity and Population Composition Ethnicity/Caste No of HHs Male Female Total Tharu 4 14 13 27 Barai 1 4 1 5 Dhanuk 1 3 -- 3 Newar 3 5 5 10 Total 9 26 19 45 Source: Census Survey, July 2012

27. Number of Displaced IP Households by Affected Structures 236. Among the IP likely to have impact on their structures due to the subproject (9 households), out of that 2 households of Tharu will have affect on private structures. (Table 100).

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Table 100: Number of Displaced IP Households by Affected Structures

No of Structures by Type S.No. IP Tradition Semi- Modern Shed Toilet Tanti Total al Modern 1 Tharu 0 1 1 0 0 0 2 Total 0 1 1 0 0 0 2 Source: Census Survey, September 2012

28. Summary of Compensation and Resettlement Costs 237. The details of resettlement implementation cost including all the expenses required to compensate for the affected assets including rehabilitation/relocation costs and other financial assistance are mentioned in Table 101. The summary cost also contains additional ten percent contingency amounts, and costs required for external monitoring and capacity building training. Descriptive text on capacity building and external monitoring is included in chapters 10 & 12 of this RP document. However, in this section, only the additional cost of land, trees, affected structures, additional assistance to vulnerable groups, cost for loss of employment incaurred in Kanchanpur market area is incorporated.

Table 101: Summary of Resettlement Budget and Cost Estimate

S.N. Cost Item Unit Cost 1 Estimated compensation for private land 4.06 ha 60,969,656 2 Estimated compensation for Private Trees 36 nos 981,000 3 Estimated compensation for private Structures 242 number 72,361,468 Estimated compensation for Community 4 Structures 1 nos 400,000 5 Displacement & Transportation allowance 145 1,450,000 6 Additional assistance to vulnerable groups 4 person 82,800 7 Loss of Employment 7 Person (630*300) 56,700 Total RP Cost (NRS.) 136,301,624

US [email protected] (July 20,2012) 1,545,369.9

Source: Census Survey, September 2012

29. Comperative Resettlement Cost Analysis of Rupnagar Bypass and Kanchanpur Market Area 238. Based on the census survey, approximately 6.84 ha private land should be acquired for Rupnagar Bypass road, which cost Rs 60142600 .00 at present market value. However, approximately 4.06 ha private land should be acquired which cost Rs, 60969656.00 at present market value. Besides this, the subproject should compensate other cost like cost of trees, private structures, community structures, displacement and transportation allowance, additional to vulnerable groups, loss of employment for Kanchanpur market area. Hence, the actual cost including private land for the second option (Kanchanpur market area) is estimated Rs. 136301624.00. If second option, will be selected for the implementation of this Subproject, the DoR can acquire the land free of cost, because the Government of Nepal has issued the notice of 30 RoW in Gajet-1974 of feeder road standard of this section as a part of Kunauli-Hanumangar- Phattepur road.