Involuntary Resettlement Assessment and Measures

Land Acquisition and Resettlement and Indigenous Peoples Framework Document Stage: Draft for Consultation Project Number: 38479 July 2010

INO: Regional Roads Development Investment Program

Prepared by Directorate General of Highways, Ministry of Public Works

The Land Acquisition and Resettlement and Indigenous Peoples Framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

TABLE OF CONTENTS

I. INTRODUCTION...... 1 II. LEGAL AND POLICY FRAMEWORK ON SAFEGUARDS...... 1 A. ADB POLICIES AND REQUIREMENTS...... 1 B. RELEVANT LAWS AND REGULATIONS IN ...... 2 III. LAND ACQUISITION AND RESETTLEMENT FRAMEWORK ...... 3 A. GAP ANALYSIS AND GAP-FILLING MEASURES...... 3 B. OBJECTIVES AND POLICIES...... 4 C. CUT-OFF DATE OF ELIGIBILITY...... 5 D. PROJECT ENTITLEMENTS...... 5 E. RELOCATION AND REHABILITATION STRATEGY ...... 7 F. SPECIAL ASSISTANCE TO VULNERABLE HOUSEHOLDS ...... 8 G. PREPARATION OF LAND ACQUISITION AND RESETTLEMENT PLAN...... 8 IV. INDIGENOUS PEOPLES FRAMEWORK...... 10 A. INDIGENOUS PEOPLES...... 10 B. OVERVIEW OF ETHNIC GROUPS IN THE PROJECT PROVINCES ...... 10 C. SCREENING AND PREPARATION OF IP PLANS ...... 11 D. ANTICIPATED PROJECT IMPACTS ON INDIGENOUS PEOPLES...... 12 V. GENDER STRATEGY...... 13 VI. CONSULTATION AND DISCLOSURE ...... 14 VII. GRIEVANCE REDRESS...... 14 VIII. IMPLEMENTATION ARRANGEMENTS...... 15 A. DIRECTORATE GENERAL OF HIGHWAYS...... 15 B. DISTRICT GOVERNMENT...... 15 C. MOBILIZATION OF DESIGN SUPERVISION CONSULTANTS...... 16 IX. MONITORING AND EVALUATION ...... 16 D. INTERNAL MONITORING ...... 16 E. EXTERNAL MONITORING AND EVALUATION...... 17 X. BUDGET ...... 17 XI. IMPLEMENTATION SCHEDULE...... 18

Appendix 1: Sample Format of a Land Acquisition and Resettlement Plan Appendix 1: Sample Format of an Indigenous Peoples Plan

ABBREVIATIONS

ADB Asian Development Bank AH Affected Household AP Affected Person BAPPEDA Provincial / District Development Planning Agency BAPPENAS National Development Planning Agency EA Executing Agency DMS Detailed Measurement Survey IP Indigenous Peoples LAC Land Acquisition Committee LARIPF Land Acquisition and Resettlement and Indigenous Peoples Framework LARP Land Acquisition and Resettlement Plan PMU Project Management Unit PIC Project Implementing Consultant RCS Replacement Cost Study ROW Right-of-Way SES Social Economic Survey DGH Directorate General of Highways

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Definition of Terms

Affected Person – means any person or persons, household, firm, private or public institution that, on (AP) account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. In the case of a household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components.

Compensation – means payment in cash or in kind (e.g. land-for-land) to replace losses of land, housing, income and other assets caused by the Project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market value, plus any transaction costs such as administrative charges, taxes, registration and titling costs. In the absence of functions markets, a compensation structure is required that enables affected people to restore their livelihoods to level at least equivalent to those maintained at the time of dispossession, displacement, or restricted access.

Cut-off date – This refers to the date prior to which the occupation or use of the project area makes residents/users of the same eligible to be categorized as AP, regardless of tenure status. In this Project, the cut-off date will be following the completion of detailed design. Entitlement – means a range of measures comprising compensation in cash or in kind, income restoration support, transfer assistance, income substitution and relocation support which are due to affected people, depending on the nature of their losses, to restore their economic and social base.

Involuntary – addresses social and economic impacts that are permanent or temporary and are (i) Resettlement caused by acquisition of land and other fixed assets, (ii) change in the use of land, or (iii) restrictions imposed on land.

Land acquisition – means the process whereby an AP is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation equivalent to the replacement costs of affected assets.

Rehabilitation – means assistance provided in cash or in kind to project affected persons due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life.

Relocation – means the physical relocation of an affected household from her/his pre-project place of residence.

Severely affected – Those who experience major impacts which is defined as being physically displaced persons from housing or losing 10% or more of their productive assets (income generating).

Vulnerable groups – are distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement and specifically include: (i) households headed by women, elderly, or disabled, (ii) households falling under the generally accepted indicator for poverty, (iii) landless households, and (iv) ethnic minorities.

I. INTRODUCTION

1. Regional Roads Development Investment Program (Investment Program). The Investment Program comprising 2 tranches, covers two ADB and one Islamic Development Bank (ISDB) funded Projects; (i) ADB Project 1 and ISDB Project under Tranche 1 which are to be approved in 2010, and are identified as the "Regional Roads Development Project" in the BAPPENAS Blue Book; and (ii) Project 2 under Tranche 2 which is to be approved in 2013.

2. Land Acquisition and Resettlement and Indigenous Peoples Framework. This Land Acquisition and Resettlement and Indigenous Peoples Framework (or "LARIPF") has been prepared for the entire Project. The LARIPF sets out the resettlement screening, policy, and planning procedures that the executing and implementing agencies will follow when preparing resettlement and/or indigenous peoples plans.

3. Safeguards Documents Prepared Under Tranche 1. Draft Resettlement Plans have been prepared for subprojects under Tranche 1. There is no separate Indigenous Peoples Plan (IPP) or combined LARP-IPP prepared for subprojects under Tranche 1 as the Project will not have adverse impacts on the identity, culture and customary livelihoods of the indigenous communities.

II. LEGAL AND POLICY FRAMEWORK ON SAFEGUARDS

A. ADB Policies and Requirements

4. The new ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies: involuntary resettlement (IR), indigenous peoples (IP), and environment. The objectives of the IR policy are to (i) avoid involuntary resettlement, (ii) explore alternatives to avoid, (iii) restore livelihoods and (iv) improve living standards of poor and vulnerable households. The IP policy objectives are to (i) design and implement projects that fosters full respect for IP's identity, dignity, human rights, livelihoods systems, and cultural uniqueness as defined by IP themselves and (ii) ensure that IPs receive culturally appropriate social and economic benefits, do not suffer adverse impacts as a result of projects, and can participate actively in projects that affect them. The policy on environment is discussed in a separate environment report.

5. The ADB Policy on Gender and Development (1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate in and that their needs are explicitly addressed in the decision-making process for development activities. The new safeguard policy and requirements also reiterates the importance of including gender issues in the preparation of safeguards documents at all stages to ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights and restoration/improvement of their living standards; and to ensure that women will receive project benefits. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005), and (ii) Accountability Mechanism (2003).

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B. Relevant Laws and Regulations in Indonesia

6. Resettlement. The key legal instruments currently in force in Indonesia that are most relevant to involuntary resettlement are Presidential Regulation No. 36/2005, entitled “Provision of Land for Realizing the Development for Public Interests”, as amended by Presidential Regulation No. 65/2006, entitled “On Land Acquisition for Development Purposes in the Public Interest”, and National Land Agency (BPN) Regulation No. 3/2007 on Land Acquisition Implementation Guideline for Presidential Decrees 65/2006 and 36/2005. Superseding Presidential Decree No. 36/2005 that earlier amended Presidential Decree No. 55/1993, the 2006 Presidential Regulation provides for various forms of compensation for private assets needed to pursue Government development projects.

7. In 2003, consistent with the national thrust to devolve central powers to the local governments, Presidential Decree 34/2003 (National Policy on Agrarian Affairs) was issued. Additionally, the Decree of the Head of the National Land Agency 2/2003 on Mechanisms, Norms, and Standards for Government Authority and Management of Agrarian Affairs provides further detail on how land acquisition and compensation would be carried out. Other laws or acts that have bearing on resettlement are Land National Agency circulation letter No. 3127/15.1-300/VII/2009 which determines the compensation rate; National Land Agency Regulation No. 1/2010 which regulates the time frame for the certification to the remaining land after compensation payment. Road Law No. 38/2004 and Traffic and Road Transportation Law No. 22/2009 on which recognizes people occupying the state land including squatters and Act No. 9/2009 on Food Security requires any party acquiring productive land to provide land replacement with the three times wide of the acquired productive land.

8. Indigenous Peoples. There is a continued debate on which groups can be categorized as indigenous peoples. Various terms have been used such as "isolated people", "rational forest farmers", "native people" and "adat law communities" or "adapt communities". For the LARIPF, the term adat communities is used to refer to indigenous peoples due to the following characteristics similar to the definition of IP in the ADB safeguard policy : (i) self identification and recognition by others; (ii) collective attachment to habitats and natural resources; (iii) separate customary cultural, economic, social and political institutions; and distinct language.

9. There is no generic law in Indonesia that deals specifically with adat communities. Provisions related to the recognition of adat communities are found in 1945 Constitution and Human Rights Act of 1999. The Population and Prosperous Family Act of 1992 implies recognition of the right to cultural integrity as groups and rights to use of ancestral lands (territories) but has no reference on adat communities while the Basic Agrarian Law states the principles which accommodate recognition of adapt communities, ulayat land rights, and adat laws. Act No. 25 of 2000 asserts the importance of active participation of communities in the use of, access to natural resources in the framework of protecting public rights and rights of adat communities.

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III. LAND ACQUISITION AND RESETTLEMENT FRAMEWORK

A. Gap Analysis and Gap-Filling Measures

10. Gap Analysis. The main limitation of Presidential Decree No. 65/2006, the applicable provisions of Presidential Decree No. 36/2005 and Presidential Decree No. 55/1993, including their enabling decrees, such as the Regulation of the State Minister of Agrarian Affairs and National Land Agency No. 1 of 1994, lies on the fact that they have not been conceived and planned to address a multi-faceted social phenomenon known as involuntary resettlement. Said laws are concerned, more than anything else, with acquiring in the most expeditious way properties needed for the right-of-way (ROW) of government projects. But as acquisition and/or clearing of project ROW may involve displacement of people from both material and non- material assets, these people, most of whom are already poor to begin with, are at risk of further impoverishment in the form of landlessness, joblessness, homelessness, economic marginalization, increased morbidity and mortality, food insecurity, loss of access to common property, and disintegration of community and social ties and organizations. Certainly, existing laws and policies on land acquisition cannot address these risks.

11. With regard to comparison of Indonesian Law and ADB policies, to begin with, the two are not similar. On the one hand, Indonesian laws on property acquisition for ROW are principally an exercise of the State power on eminent domain. In the acquisition process, government agencies invoking the State power on eminent domain are guided by other laws and regulations pertaining to ownership over the acquired assets and the level of compensation to be provided. Existing financial and auditing procedures must be followed, notwithstanding the fact that the affected property is not being acquired by Government on a “willing seller – willing buyer” situation. Moreover, the focus of the acquisition activity is the object to be acquired; the social situation of the person to be dispossessed of an asset is not considered in the whole transaction.

12. On the other hand, the focus of ADB Policy is the affected person or household; concerns are raised on whether or not acquiring an asset for the project ROW, regardless of the tenure status of the household, would adversely impact the APs current living standards. Questions on whether such acquisition would put the AP at risk of impoverishment and on whether it would bring in an opportunity for the AP to improve its present status are asked. Thus, ADB’s Policy on Involuntary Resettlement seeks to restore the pre-project living standard of the AP through the replacement of lost assets in conjunction with other measures that are all aimed at improving the socio-economic conditions of the poor and vulnerable households.

13. The following legal and operational restrictions quite aptly provide a picture of how wide the gap is between existing Indonesian laws and regulations and ADB’s Safeguard Policy:

a. Provision on calculation basis for compensation of land dos not clearly refer to the principle of replacement cost. Presidential Regulation states that the land price refers to the NJOP price or real price by considering the current NJOP price. With the said provision, many local governments pay the compensation for land in accordance to the NJOP price or in between NJOP and market price. No provision that the transaction cost1 should be paid by the government.

1 Transaction cost refers to payment of administration fee, certification cost for issuance of new title/certificate, taxes.

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b. Government auditing policies compel Executing Agencies not to compensate at replacement rates for affected fixed assets, such as buildings. The value of the affected asset, even if lost involuntarily, is depreciated and the value of salvageable materials deducted from the amount of compensation. c. Current legal framework does not include a definition of non-physical losses or how to apply a value to them, no requirement to identify or address vulnerable groups, and severely affected persons, no opportunity for affected persons to participate in monitoring and no requirement to develop resettlement plans. 14. It is because of the limitations of and gaps in law that could comprehensively address the complex social issues attendant to ROW acquisition that the Project policies in this LARIPF have been adopted based on the ADB Safeguard Policy Statement (2009).

B. Objectives and Policies

15. The core principle of the Project Policy is anchored on the philosophy that ADB safeguards policies and Government development projects must serve the public good and that, in the design and implementation of such projects, all efforts will be exerted to help ensure that APs are not worse off. Moreover, the Project should provide an opportunity for the local population to derive benefits from it. Likewise, the Project should serve as an occasion for the local population to participate in its planning and implementation, thereby engendering a sense of ownership over the Project, subprojects and other components. Towards this end, the Implementing Agency will endeavor to carry out the Project and any of its subprojects and components based on the following principles:

a. Involuntary resettlement and impacts on land, structures and other fixed assets will be minimized where possible by exploring all alternative options. b. Compensation will be based on the principle of replacement cost at the time of compensation. c. Affected persons without title or any recognizable legal rights to land are eligible for resettlement assistance and compensation for non-land assets at replacement cost. d. Meaningful consultation will be carried out with the affected households and concerned groups and ensure participation from planning up to implementation. The comments and suggestions of the APs and communities will be taken into account. e. Grievance mechanism will be established to address concerns and issues raised by the APs f. Improve, if not, restore the livelihoods of affected people through various income restoration strategies and prompt replacement of assets g. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. h. Provide special assistance to the poor and vulnerable households such as legal and affordable access to land and resources, appropriate income sources and legal and affordable access to adequate housing.

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i. A set of procedures on transparency and consistency will be adopted if land acquisition will be done through negotiated settlement to ensure that APs will be able to maintain same or better socio-economic status. j. The draft, final and any updates on the LARP will be disclosed to APs and indigenous households in a form and language(s) understandable to them prior to submission to ADB. k. Resettlement identification, planning and monitoring will ensure that gender concerns are incorporated. l. Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as indigenous households, households headed by women, children, disabled, the elderly, landless and people living below the generally accepted poverty line. m. Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved. This includes the host population. n. Culturally appropriate and gender-sensitive social impact assessment, planning, and monitoring will be carried out. o. PMU will not award a civil works contract until the head of district government has officially confirmed in writing that (i) payment has been fully disbursed to the affected persons and rehabilitation measures are in place as per Final LARP agreed between DGH and ADB; (ii) already-compensated affected persons have cleared the area in a timely manner; and (iii) the area is free from any encumbrances. No land acquisition or site clearing will be done until and after the Final LARP has been agreed between DGH and ADB.

C. Cut-Off Date of Eligibility

16. The cut-off-date of eligibility refers to the date prior to which the occupation or use of the project area (i.e., area within the COI) makes residents/users of the same eligible to be categorized as AP and be eligible to Project entitlements. The date has to be disclosed to each affected village by the relevant local governments and the villages have to disclose it to the communities. The establishment of the eligibility cut-off date is intended to prevent the influx of ineligible non-residents who might take advantage of Project entitlements. For this Project, official announcement on the cut-off date will be done following the completion of detailed design. DGH, through the district office, will issue an official announcement on the cut off date by media announcement (local TV and radio), disseminating copies of the same in local language to the communities and by posting copies at the village offices or public places. DGH will also record the current settlement along the project area through video or photo recording. Village meetings will also be carried out, minutes of meeting and attendance of participants will be prepared to confirm announcement of cut-off date by the local authorities.

D. Project Entitlements

17. The entitlements below are based on potential resettlement impacts and corresponding compensation and assistance to the APs, regardless of tenure status. Entitlements adopted are based on central and local decisions, and ADB-funded project in Indonesia and as per policy principles of ADB Safeguard Policy Statement. It should be noted that actual impacts can only be determined based on census and detailed measurement survey. The entitlement matrix of this LARIPF may be revised to reflect the relevant changes but the standards set in the LARIPF entitlement matrix cannot be lowered when the resettlement plan is finalized. LARP implementation will not commence until DGH and ADB agree on the Final LARP.

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Table 1: Entitlement Matrix Type of Eligible Loss/Impacts Persons Entitlements Loss of Land Owners with Compensation in cash at replacement based on certificate/non- current market value which is derived from recent land certificate land2 sales in the area. Affected households will be exempt from paying transaction costs (administration cost and taxes).

The local government will pay for the land certification cost. Impacts on Owners with Cash compensation based on replacement cost which Shops and Fixed certificate/non- is equivalent to current market value of structures and Assets certificate land labor without application of depreciation. Owners will be allowed to take salvageable materials.

As for the utilities such as water and electricity, owners will be compensated based on cost of removal and installation of said utilities. Any utilities (eg. water meters or water pipes) that will be fully damaged and can no longer be re-installed will be compensated at replacement cost. Owners on Cash assistance based on replacement cost which is village and equivalent to current market value of structures and government labor without application of depreciation. Owners will land be allowed to take salvageable materials.

Impacts on Crops Owners Trees and crops will be based on replacement cost and Trees regardless of which is equivalent to age, type, and productive value. tenure status Households will be given timely notice in order for them to harvest their crops. Loss of, or Local To be restored and relocated in accessible areas or damage to Public government/ Cash compensation based on current market value of Facilities Enterprise facilities (including removal and transfer) to replace affected assets. Higher risks of Vulnerable Those who will require relocation of shops or fixed hardship due to households structures will be provided easier access to materials project impacts and provision of labor, as needed. Assistance may be due to impacts in cash or in kind. on house and shops and loss of productive land The needs of vulnerable groups will be assessed during LARP preparation.

Loss of Income Severely Provision of income restoration measures or programs. from Loss of affected

2 Non-certificate land (SKT/Girik) is issued by Head of Sub District or Head of Village. It falls under "customary right. It is common practice that during land acquisition process, "non-certification land" are upgraded as "certification land", and certification cost will be shouldered by the the Government.

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Type of Eligible Loss/Impacts Persons Entitlements Productive Land Households The type of income restoration measures will be or Disruption of and vulnerable assessed based on the needs of the APs. For Business or due households example, cash or in-kind rehabilitation measures to to relocation of improve land to make it more productive (e.g. provision households of seedlings and fertilizers), identification of suitable commercial site for relocating businesses.

Impacts during Contractors will be responsible for paying rental in Construction cash for land outside the ROW which will be no less than the net income that would have been derived from the affected property during disruption. Restoration of land will done immediately after use. Non-land assets within the residual area of the ROW will be replaced through in-kind support while those outside of the ROW that are adversely impacted by construction activities will be compensated in-kind or cash at replacement cost by the civil works contractor. Disruption of Shop owners Assistance will be based on the average net income of shop during shops per day multiplied by the number of days of relocation disruption.

If the shops are registered, the assistance will be based on the average net income as per official records (tax receipts) per day multiplied by the number of days of disruption. Relocation of Relocating For households who are entitled to payment for land, it Households Households will either be land-for-land or cash compensation at replacement cost. For those who have no rights (i.e., no certificate/non-certificate land) to their land, the PMU and district government will assist in finding replacement land for these households with similar or better conditions as before. The arrangements will be on a renewable lease agreement, lease-to buy arrangements or at no cost to APs. In-kind support will be provided such as provision of labor and/or transport by the civil works contractors.

E. Relocation and Rehabilitation Strategy

18. Households will be consulted with regard to their option for relocation. For households who are entitled to payment for land, it will either be land-for-land or cash compensation at replacement cost. For those who have no rights (i.e., no certificate/non-certificate land) to their land, the PMU and district government will assist in finding replacement land for these households with similar or better conditions as before. The arrangements will be on a renewable lease agreement, lease-to buy arrangements or at no cost to APs. In-kind support will be provided such as provision of labor and/or transport by the civil works contractors.

19. For independent shops/stalls, they will be allowed to move back on their remaining land or a place/plot to lease/rent with similar commercial advantage either in existing market sites or

8 a plot of land suitable for putting up stalls/shops (new market) with lease arrangement with a provision to renew. The shop owners will be assisted in gradually dismantling/re-organizing or setting up their shops in a way that will allow them to gradually phase out their operation in their old place and gradually begin their operation in their new place. Under this arrangement, the shop owners will not experience any stoppage in their operation. Moreover, through the district government, the shop owners and other affected households will be informed about the start of civil works in a specific section at least 3 months in advance. In-kind support will be provided such as provision of labor and/or transport by the civil works contractors for vulnerable households.

20. On loss of productive land that may severely affect the households, the type of income restoration measures will be assessed on the type of assistance to be provided, for example, land-for-land replacement and cash or in-kind rehabilitation measures to improve land to make it more productive (e.g. provision of seedlings and fertilizers). During LARP preparation, APs who are most vulnerable to risk will be identified; consultation with regard to AP options on compensation and preferred income restoration measures will be reflected in the LARP. During monitoring, PMU staff and external monitor will monitor and assess how the APs are able to rehabilitate themselves, if not improve their socio-economic conditions. It will also identify any problems faced and how to improve the income restoration measures to make it workable/ implementable based on current conditions/feedback from the APs. Provision for special fund will be allocated for the rehabilitation activities including training cost as required.

F. Special Assistance to Vulnerable Households

21. Vulnerable households are distinct groups of people who might suffer disproportionately of face the risk of being further marginalized by the effects of resettlement. These are households headed by women with dependents, disabled household heads, households falling under the generally accepted indicator for poverty, women, children and elderly who are landless and with no other means of support, landless households, indigenous peoples. Particular attention will be given to poor and vulnerable households during LARP preparation and implementation. Separate consultation meetings will be conducted with these households and women group on specific resettlement concerns, such as compensation and entitlements, rehabilitation of livelihoods and relocation as relevant. All public information and consultation meetings will ensure that vulnerable households are present.

G. Preparation of Land Acquisition and Resettlement Plan

22. If land acquisition or resettlement impacts are unavoidable and preparation of a land acquisition and resettlement plan (LARP) is therefore required, a LARP will be prepared following detailed design using the following procedures:

23. Undertake census and detailed measurement survey (DMS)3 of all losses of all APs . At the same time, inform potential APs, without discrimination, of the subproject, its likely impacts, and principles and entitlements as per the LARIPF.

24. Undertake a socioeconomic survey (SES) of the affected households whose land and/or structures are severely affected, disaggregated by gender and ethnicity. If the impacts on all affected households are all marginal, at least 10% of the total affected households will be surveyed.

3 Data will be disaggregated by gender and ethnicity.

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25. Undertake a replacement cost survey for various types of affected assets as a basis for determining compensation rates at replacement cost. Determine the losses and corresponding entitlements, including costs, in accordance with the entitlement matrix. An Independent Land Appraiser (ILA) will be hired if there is land acquisition.

26. Provide project and resettlement information to all persons affected in a form and language that are understandable to them, and closely consult them on compensation and resettlement options, including relocation sites and economic rehabilitation.

27. Prepare the draft LARP with time-bound implementation schedule, procedures for grievance mechanism and monitoring and evaluation, and a budget.

28. Disclose the draft and final LARP in accordance with ADB’s policy on public communications4 to the affected communities and on ADB’s website.

Table 2: Different Types of Surveys Detailed The census and detailed measurement survey (DMS) of lost assets will collect data on the Measurement affected assets from 100% of APs following detailed engineering design. The data collected Survey (DMS) during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation. For each AP, the scope of the data will include:  Total and affected areas of land, by type of land assets;  Total and affected areas of structures, by type of structure (main or secondary);  Legal status of affected land and structure assets, and duration of tenure and ownership;  Quantity and types of affected crops and trees;  Quantity of other losses, e.g., business or other income, jobs or other productive assets; estimated daily net income from informal shops;  Quantity/area of affected common property, community or public assets, by type;  Summary data on households, by ethnicity, gender of head of household, household size, primary and secondary source of household income viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, poor or indigenous peoples;  Identify whether affected land or source of income is primary source of income; and  AP knowledge of the subproject and preferences for compensation and, as required, relocation sites and rehabilitation measures. Socioeconomic The socioeconomic survey (SES) will collect information from all APs whose land /income Survey generating assets and/or structures will be severely affected, disaggregated by gender and ethnicity. The purpose of the socioeconomic survey is to provide baseline data on households to assess resettlement impacts, and to be sure proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope of data to be collected includes:  Household head: name, sex, age, livelihood or occupation, income, education and ethnicity;  Household members: number, livelihood or occupation, school age children and school attendance, and literacy, disaggregated by gender;  Living conditions: access to water, sanitation and energy for cooking and lighting; ownership of durable goods; and  Access to basic services and facilities. If the impacts on all affected households are all marginal, at least 10% of the total affected households will be surveyed. Replacement The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by Cost Survey collecting information from both secondary sources and primary sources (direct interviews with people in the affected area, material suppliers, house contractors), and from both those affected and those not affected. The government rates will be adjusted, as necessary, based on the findings of a RCS. Compensation rates will be continuously updated to ensure that APs receive compensation at replacement cost at the time of compensation payment.

4 ADB. 2005. Public Communications Policy. Manila.

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IV. INDIGENOUS PEOPLES FRAMEWORK

A. Indigenous Peoples

29. ADB’s Policy on Indigenous Peoples defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society”. "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them.

30. The policy on indigenous peoples is “designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability.

B. Overview of Ethnic Groups in the Project Provinces

31. Indonesia's population of around 222 million people includes 500 ethnic groups speaking more than 600 languages. While there are no census data on the number of persons who self- identify as indigenous rough estimates are that more than 2 million people live under the "isolated people" 5category.

32. West Kalimantan. Major ethnic groups include the Dayak, Sambas, Malay, Chinese, which make up about 90 percent of the total population. The rest are , Bugis, Madurese, and other ethnicities. Indonesian is the official language but Malay, Dayak, Chinese and of Hakka and Teochew are also spoken. About 57 percent of people are Muslim and about 34 percent are Christian.

33. East Kalimantan. The population is a mixture of people from the Indonesian archipelago with Dayaks and Kutai as indigenous ethnic groups living in rural areas. Other prominent migrant ethnic groups include Javanese, Chinese, Banjarese, Bugis and , who mostly live in coastal areas. Indonesian is the official language with Banjar, Dayak and Kutai also spoken. This province is the location of the oldest Hindu kingdom in Indonesia, Kutai, the

5 Isolated people, as described in the Social Minister’s Decree, No.5 of 1994 is referred to ”groups of people who live or are nomadic in geographically remote and isolated areas and are socially and culturally alienated and/or still underdeveloped compared to other Indonesian communities in general.” Underdeveloped in the definition was in regard to health, education, housing, clothing, and ways of life. BAPPENAS (National Agency for Development Planning) suggested some characteristics of isolated people, namely that they (i) live as nomads or are scattered in small groups; (ii) depend on nature through hunting, fishing, gathering, and swidden farming; (iii) have low health or environmental standards; (iv) have a low standard of housing; (v) have limited knowledge and technology; (vi) have animistic beliefs; and (vii) are strongly tied to their culture and beliefs, which isolate them (Source: Asian Development Bank, 2002. Indigenous Peoples/Ethnic Minorities and Poverty Reduction: Indonesia).

11 existence of which is attested to by a stone manuscript, or Prasasti, which is now kept in the National Museum in Jakarta. Over 85 percent of people are Muslim.

34. West . The main ethnic group is Sudanese in accounting for 74 percent of the population. In addition to the , Sudanese is widely-spoken and in some areas near the southern borders with , Javanese is also spoken. The main language spoken in Cirebon and nearby areas (Majalengka, Indramayu, Sumber) is Cirebonese, a of Javanese. Indonesian is widely spoken as a second language, except in some remote rural areas. The majority of the population are Muslim (96%) and the remainder are either Christian, Hindu or Buddhist.

35. . The inhabitants consist of mostly Javanese. Minorities include migrants from nearby Madura, and distinct Javanese ethnicities such as the Tengger people in Bromo, and the Samin and the Osing people in . East Java also hosts a significant population of other ethnic groups, such as Chinese, Indian and Arab people. The main religion is Islam but pockets of Hinduism, Buddhism and Animism remain. In addition to the national language, Indonesian, they also speak Javanese. Javanese spoken in the western part of East Java is indistinguishable from the one spoken in nearby Central Java , with its hierarchy of high, medium, and low speeches. But in the eastern citiesof Surabaya, Malang, and surrounding areas, the people speak a more egalitarian version of Javanese. Madurese is spoken by around 15 millions of Madurese, concentrated in Madura Island, Kangean Islands, Masalembu Islands, Eastern part of East Java, and East Java main cities.

36. Central Java. The majority of the Central Javanese population are Muslim (96%). The remainder of the population are either Christian, Hindu or Buddhist. Although the overwhelming majority of Javanese are Muslim, many of them also profess indigenous Javanese beliefs. Santri Javanese are more orthodox Muslim while Abangan Javanese are nominal Muslim that devote more energy to indigenous traditions. In addition to the Javanese, small pockets of Sundanese communities are found near the border with West Java, especially in Brebes and Cilacap, regencies. Sudanese toponyms are common in these region such as Dayeuhluhur in Cilacap, Ciputih and Citimbang in Brebes and even Cilongok as far away in Banyumas. The most dominant language is also Javanese but there are several dialects which are spoken in Central Java. The two main dialects are western Javanese (also called Basa Ngapak which includes the "Banyumasan dialect" and the dialect of Brebes-Tegal-Pekalongan) and central Javanese. Sundanese is also spoken in some pockets near the border with West Java, especially in Brebes and Cilacap regencies. In urban centers Indonesian is widely spoken.

37. . The inhabitants are mostly Javanese (92%) while the remaining groups are Sudanese, Melayu, Chinese, , Minangkabau, , and Madura. Languages used are Indonesian, Javanese. The population are Muslim and the remainder are Christian, Hindu and Buddhist.

C. Screening and Preparation of IP Plans

38. One of the Project objectives is to ensure that indigenous households, especially the smaller and vulnerable groups, share in the project benefits and experience limited adverse impacts from the Project. Screening, social assessment, and meaningful consultation will be carried out for all subprojects. As part of the screening of each subproject, identification of affected indigenous households in the project area will be guided by the following questions presented in the Table 3 below.

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Table 3: Identification of Indigenous Households in Project Area Impact on indigenous households Yes No Remarks Are there indigenous households present in project locations? Do they maintain distinctive customs or economic activities that may make them vulnerable to hardship? Will the project restrict their economic and social activity and make them particularly vulnerable in the context of project? Will the project change their socioeconomic and cultural integrity? Will the project disrupt their community life? Will the project positively affect their health, education, livelihood or social security status? Will the project negatively affect their health, education, livelihood or social security status? Will the project alter or undermine the recognition of their knowledge, preclude customary behaviors or undermine customary institutions? In case no disruption of indigenous community life as a whole, will there be loss of housing, strip of land, crops, trees and other fixed assets owned or controlled by individual indigenous households?

39. The policy on indigenous peoples is triggered when the Project (a) affect IP directly or indirectly; affect the dignity, human rights, livelihood systems and culture of IP, and (c) affect territorial or natural or cultural resources that IP own, use, occupy, or claim as an ancestral domain or asset. If resettlement impacts cannot be avoided, DGH will prepare an Indigenous Peoples Plan to be combined with the resettlement plan. With regard to other social impacts such as risks of HIV/AIDS transmission and human trafficking, action plan or strategy will be incorporated in the social action plan to be prepared for the Project. Elements of an IPP will also be included in the overall project design if the IP are sole and primary direct beneficiaries and that positive potential impacts are anticipated.

D. Anticipated Project Impacts On Indigenous Peoples

40. Anticipated project impacts and strategy to address these impacts are shown in the table below.

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Table 4: Anticipated Impacts and Strategy to Address these Impacts Project activity and Anticipated Strategy to Address Impacts output Impacts Road Improvement Positive: Improved access to Each subproject will incorporate IPs as beneficiaries infrastructure, social services and and will also incorporate specific needs of IPs in the economic opportunities. project design. During & After Positive: Access for IPs and Will include specific provisions in the bidding Construction women to employment during documents to ensure that civil works contractors (a) construction and maintenance comply with applicable core labor standards, labor activities (if applicable). laws, and incorporate applicable workplace occupational safety norms; (b) do not differentiate payment between men and women from indigenous households for work of equal value; (c) do not employ child labor in the construction and maintenance activities; and (d) to the extent possible, maximize employment of indigenous households (specially smaller and vulnerable indigenous), local poor and disadvantaged persons for project construction purposes, provided that the requirements for job and efficiency are adequately met.

Negative: Impacts on Impacts will be avoided, if not minimized. land/income generating assets Indigenous households and women will be entitled and non-land assets, (temporary to the same project entitlements as indicated in and/or permanent). LARIPF entitlement matrix. Negative: Potential risk of Presentation, and disclosure activities will be HIV/AIDS transmission and conducted in local language. The indigenous human trafficking households will have access to information; presentation materials will be simple and will address cultural norms and beliefs, recognizing both the key role they may play in supporting prevention efforts.

V. GENDER STRATEGY

41. A number of strategies will be adopted to ensure gender-sensitive and culturally responsive measures and, to engage women actively in the planning and implementation of the subprojects in terms of access to improved infrastructure and services, participation in livelihood programs, and other project benefits. The gender strategy is shown in Table 3.

Table 5: Gender Strategy Project activity and Gender Strategy output Project Planning and The project staff and resettlement committees will make concerted efforts to consult with (i) Implementation households headed by women and (ii) female households members6. This will be done through individual and women focus group discussions. The role of local authorities/women representatives will be crucial in facilitating these consultations and ensuring women’s specific needs are met.

Meetings will be held to raise awareness and understanding about the project design, project schedule, benefits, adverse impacts and mitigation measures to ensure that they understand clearly the policies, entitlements and other procedures, and are able to make informed

6 Female members refer to daughters or wife or mother/mother-in-law, female cousins of households headed by men. If the household is headed by women, "female members' refers to daughters/ mother/mother-in-law/female cousins living with the households.

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Project activity and Gender Strategy output decisions.

Women in local communities will be involved in other initiatives to address the social and environmental impacts of the Project, such as: a) road safety education (due to increased traffic and vehicle speeds); and b) prevention programs for HIV/AIDS, and trafficking of women and children. Resettlement & Women will be consulted specifically to establish criteria for replacement land or Rehabilitation improvements to existing lands, particularly in relation to the planning of available lands and maintenance of the household utility areas, as well as issues relating to access to community services and facilities such as schools, health facilities and markets, as well as their economic activities.

New land registrations will be made in both spouse’s names if the land acquired by the Project was acquired by husband and wife during marriage, or in the case of households headed by women households, in the women’s name.

Compensation payments will be signed off by both spouses, or by households headed by women.

During Construction The civil works contracts will include employment targets for the poor, and women from the Project affected villages and local area. They will also include commitments to gender equity including: i) ensuring that no child labor or trafficked labor will be used; ii) no discrimination against the employment of qualified women; and iii) no differential wages paid to men and women for work of equal value. Monitoring All monitoring indicators will be disaggregated by gender and ethnicity.

VI. CONSULTATION AND DISCLOSURE

42. Meaningful consultation with the affected households will be carried out prior to the commencement of civil works. They will also participate in the various Project process and resettlement processes: DMS, RCS, identification of sites, hand-over of entitlements, monitoring of impacts and benefits, and discussion and settlement of grievances. The scope of information to be provided to APs includes: (i) description of Project and overall schedule; (b) DMS and RCS results, (c) policy principles and entitlements and special provisions, (d) grievance procedures, (e) timing for payments and displacement schedule, and (f) institutional responsibilities. For Project roads where there are ethnic minority households, consultations and participation will be undertaken in a culturally appropriate manner.

43. The LARP/IPP to be prepared will be submitted to ADB for review and concurrence. Key information in the LARP/IPP will be provided to the APs through the distribution of pamphlets or brochures or leaflets in local language or be put in local/village announcement board. It will be simple and easy to read and will consider the literacy level of the audience concerned. Copies of the LARP/IPP or its summary translated into local language will be placed in the village offices.

44. This LARIPF will be uploaded on ADB website. Likewise, the draft and final resettlement plans and social monitoring reports prepared during implementation will be uploaded on the ADB website.

VII. GRIEVANCE REDRESS

45. Grievances related to LARP implementation of the subproject will be handled through negotiation aimed at achieving consensus.

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46. Complaints will pass through 3 stages before they could be elevated to a court of law as a last resort, thus:

47. First Stage. An aggrieved AP may bring his/her complaint before any member of the village, either in writing or verbally. It is incumbent upon the Lurah (village chief) to notify the PMU staff about the complaint. The Lurah will have 14 days following the lodging of the complaint by the aggrieved AP to act on the case. He/she may call, as needed, any member of the PMU, to help him/her come up with an acceptable resolution of the complaint. The Lurah and his/her staff is responsible for documenting and keeping file of all complaints that it handles.

48. Second Stage. If after 14 days the aggrieved AP does not hear from the Lurah about the complaint, or if the AP is not satisfied with the decision taken by the Lurah, the AP may bring the complaint, either in writing or verbally, to the Camat (Head of Kecamatan or Subdistrict). The Camat in turn will have 30 days following the lodging of the complaint by the aggrieved AP to act on the case. He/she may call, as needed, any member of the PMU, to help him/her come up with an acceptable resolution of the complaint. The Camat and his/her staff are responsible for documenting and keeping file of all complaints that it handles.

49. Third Stage. If after 30 days the aggrieved AP does not hear from the Camat, or if the AP is not satisfied with the decision taken by the Camat, the AP may bring the complaint, either in writing or verbally, to the Bupati (head of Kabupaten or District). The Bupati has 30 days within which to resolve the complaint to the satisfaction of all concerned. The Bupati and his/her staff is responsible for documenting and keeping file of all complaints that reaches the same.

50. Final Stage. If after 30 days following the lodging of the complaint, the aggrieved AP does not hear from the Bupati or if he/she is not satisfied with the decision taken by the Bupati, the complain may be brought to a court of law for adjudication. The rules of court will be followed in the adjudication of the complaint.

51. For the adat communities, if there are social conflicts among community members, they will be solved where possible using ‘Traditional Law’ rather than ‘Constitutional Law’ (i.e. the State legal system). The Adat leaders and local government officials will have close coordination to ensure that the grievances are heard and satisfactorily addressed following the traditional way or the grievance redress mechanism for this project.

VIII. IMPLEMENTATION ARRANGEMENTS

A. Directorate General of Highways

52. The Directorate General of Highways(DGH) of the Ministry of Public Works is the Executing Agency for this Project. DGH will establish a project management unit (PMU) headed by a manager (PMU head) with experience in externally financed projects. PMU staff will be responsible for the day-to-day implementation and be accountable for technical, safeguards, and financial reporting. PMU will work closely with Subdirectorate of Environmental Affairs in term of safeguards requirements and activities.

B. District Government

53. The Decree of the Head the National Land Agency No.3/2007 on Mechanism, Norms and Standards for Government Authority and Management of Agrarian Affair, stipulates that land acquisition and resettlement will be executed by the Committee established by Governor, or

16

Bupati (Regent). The Land Acquisition Committee includes Representatives of Land Office, Agriculture Office, The Head of District and Village, and two Secretaries. The Committee has an authority to conduct an inventory of affected land assets, negotiate with the property owners together with the government agency acquiring the land, to estimate the amount of compensation, and to document anything that may have a bearing on individual resettlement plans. A Land Acquisition and Resettlement Committee and Land Appraisal Team will be convened during loan implementation.

54. The Office of the Bupati will provide the main workforce in the preparation and implementation of the LARP. The Bupati will have the following functions: (i) organize the committee for resettlement by way of a Decree; (ii) issue a local regulation on the unit costs of affected assets based on replacement cost and/or market rates; (iii) issue a local regulation with regard to assistance to informal settlers on ROW or state land; (iv) manage and disburse the funds with regard to compensation, assistance and administration costs; and (v) assist in the expeditious and judicious resolution of complaints of APs. The office of the Bupati will work closely with the PMU staff.

C. Mobilization of Design Supervision Consultants

55. The Design Supervision Consultants (DSC) will be composed of one international resettlement consultant and a team of domestic resettlement and indigenous peoples consultants to assist DGH and the local authorities in the finalization and implementation of the LARP and IPP. The DSC resettlement consultants will also assess the capacity of the implementing agencies and provide the necessary capacity building interventions (such as orientation, workshops, on-the-job training) on safeguards. Specific to resettlement, the local officials together with the DSC will carry out replacement cost survey for land and non-land assets. The results of the replacement cost survey will be applied and will be reflected in the Final LARP. The Project may also engage a qualified appraiser to carry out replacement cost survey. The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by collecting information from both secondary sources and primary sources (direct interviews with people in the affected area, material suppliers, house contractors), and from both those affected and those not affected. Independent appraisers are usually hired if there are no qualified appraisers in the design supervision consultants.

IX. MONITORING AND EVALUATION

A. Internal Monitoring

56. The PMU will serve as the Project’s internal monitoring body. Quarterly reports will be submitted to DGH starting from the commencement of LARP finalization, which coincides with the conduct of the census, detailed measurement survey and other LARP activities. The PMU will include updates on resettlement in its regular progress reports to ADB. These progress reports will be submitted to ADB for web posting.

57. Internal monitoring and supervision will have the following objectives:

a. Compensation and/or other entitlements are provided as per Final LARP, with no discrimination according to gender, ethnicity, vulnerability, or any other factor; b. Livelihood restoration measures are designed and implemented including modifications in the programs and provision of additional cash and in-kind assistance to the participating affected households as and when necessary;

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c. Public information, public consultation and grievance redress procedures are followed as described in the Final LARIPF; d. Capacity of APs to restore/re-establish livelihoods and living standards. Special attention given to severely affected and vulnerable households. e. Affected public facilities and infrastructure are restored promptly; and f. The transition between relocation or site clearing and commencement of civil works is smooth and that sites are not handed over for civil works until affected households have been satisfactorily compensated, assisted and relocated.

B. External Monitoring and Evaluation

58. An external monitoring and evaluation group will be mobilized one month prior to commencement of DMS activities. The group can be from a good reputable research or consulting agency, university, or development NGO.

59. The main objective of external monitoring is to provide an independent periodic review and assessment of (i) achievement of resettlement objectives; (ii) changes in income, living standards and livelihoods; (iii) restoration and/or improvement of the economic and social base of the affected people; (iv) effectiveness and sustainability of entitlements; and (v) the need for further mitigation measures.

60. Strategic lessons for future policy formulation and planning will also be drawn from the monitoring and evaluation of resettlement. This is possible through a Post-Resettlement Implementation Evaluation Study that will be carried out carry out 6-12 months following completion of all resettlement activities.

61. Relative to compliance monitoring during resettlement implementation, the main activities of the external monitor will revolve around the following: (i) review existing baseline data and gather additional socio-economic information, as necessary, on sample affected households; (ii) monitor preparation and implementation of the LARP; (iii) identify any discrepancy between policy requirements and actual implementation of resettlement; (iv) monitor the resolution of complaints and grievances of affected households; (v) provide recommendations for improving resettlement preparation and implementation; and (vi) review compliance with regard to use funds for land acquisition and resettlement.

62. The external monitoring activities will be conducted on a quarterly basis. Quarterly reports will be submitted to PMU and ADB. The cost of the activities will be included in the project cost.

X. BUDGET

63. The budget will cover compensation costs, allowances and rehabilitation measures, administration costs, internal and external monitoring, and contingency. LARP Costs will be part of the Government’s counterpart fund. The Government will ensure timely provision of counterpart funds for resettlement to meet any unforeseen obligations in excess of the resettlement budget estimates in order to satisfy resettlement requirements and objectives. The Resettlement Plans will identify key activities for which funds will be used, any disbursal milestones and auditing requirements that will facilitate appropriate and timely delivery. In case an IPP will be prepared for specific subprojects, budget will be allocated as described in the IPP.

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XI. IMPLEMENTATION SCHEDULE

64. The Project for Tranche 1 is scheduled to be approved on the 3rd Quarter of 2010. Loan implementation will commence in January 2011. In terms of LARP finalization and implementation activities, the table below presents important milestones. It should be noted that the Project Preparation Technical Assistance will also commence in January 2011 to determine the road subprojects that will be included for Tranche 2. All LARP/IPP required for Tranche 2 will be prepared under Tranche 1 loan.

Table 6: Implementation Schedule Schedule No Activity Tranche 1 Schedule Tranche 2 During Loan Processing 2009-2010 2010-2011 Preparation of Draft Resettlement Plan based on initial design* 2009-2010 Detailed Design** Jan - Sept 2010 2011-2012 During Loan Implementation Finalization of Draft LARP based on Detailed Design Establishment of Land Acquisition Committee / Appraisal Jan/Feb 2011 Jan/Feb 2012 Team Mobilization of External Monitor Feb 2011 Feb 2012 Socialization and Consultation Feb - June 2011 Feb - June 2012 Census and Detailed Measurement Survey Feb - May 2011 Feb - May 2012 Replacement Cost Survey to update current market value of land and March-April 2011 March-April 2012 non-land assets Finalize LARP, disclose key information of the final LARP to the affected June 2011 June 2012 people, and submit to ADB for review and concurrence ADB reviews and sends concurrence on Final LARP June/July 2011 June/July 2012 ADB uploads Final LARP on ADB website July 2011 July 2012 B. Resettlement Implementation as per Agreed Final LARP Commence payment of compensation July – Sep 2011 July – Sep 2012 Protection of acquired land October 2011 October 2012 C Other LARP Implementation Activities Monitoring (From LARP Finalization to Implementation) February 2011 - February 2012 – Internal Monitoring (quarterly reporting) onwards onwards February 2011 - February 2012 – External Monitoring (quarterly reporting) onwards onwards Grievance Redress Feb 2011 – onwards Feb 2012– onwards February 2011 - February 2012- Uploading of monitoring reports onwards onwards D Civil Works Sept 2011 - 2013 Sept 2012 - 2015 *During Project Preparation Technical Assistance (PPTA). ** Detailed design is being carried out by DGH and it is not part of the tasks of the consultants.

65. On the indigenous peoples, the Project will, to the extent possible, avoid physical relocation of indigenous peoples that will result in adverse impacts on their identity, culture and customary livelihoods. If avoidance is not possible, DGH will formulate a combined Indigenous Peoples Plan and Resettlement Plan to address both resettlement and indigenous peoples issues. As mentioned in the earlier section, on other social impacts such as risks of HIV/AIDS transmission and human trafficking, and road safety, specific actions will be incorporated in the social action plan or road safety component to be prepared for the Project. Elements of an IPP will also be included in the overall project design if the IP are sole and primary direct beneficiaries and that only positive potential impacts are anticipated.

Appendix 1 19

DRAFT FORMAT FOR A LAND ACQUISITION AND RESETTLEMENT PLAN (LARP)

Executive Summary

1. Introduction (General description of the project, its components, project area, the component for which the resettlement action plan is prepared, alternatives considered to avoid or minimize resettlement, status of the project design/implementation, (status/type (draft/updated/final /retrofitted) of resettlement plan )

2. Impact Assessment This section: a. discusses the project’s potential impacts, and includes maps of the areas or zone of impact of project components or activities; b. describes the scope of land acquisition (provide maps) and explains why it is necessary for the main investment project; c. summarizes the key effects in terms of assets acquired and displaced persons; and d. provides details of any common property resources that will be acquired.

3. Socioeconomic Information and Profile This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including: a. define, identify, and enumerate the people and communities to be affected; b. describe the likely impacts of land and asset acquisition on the people and communities affected taking social, cultural, and economic parameters into account; c. discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; and d. identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs, and priorities of women.

4. Objectives, Policy Framework and Entitlements This section: a. describes national and local laws and regulations that apply to the project and identify gaps between local laws and ADB's policy requirements; and discuss how any gaps will be addressed. b. describes the legal and policy commitments from the executing agency for all types of displaced persons; c. outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided. d. describes the land acquisition process and prepare a schedule for meeting key procedural requirements. e. defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix); f. specifies all assistance to vulnerable groups, including women, and other special groups; and. g. outlines opportunities for affected persons to derive appropriate development benefits from the project.

20 Appendix 1

5. Information Disclosure, Consultation, and Participation This section: a. identifies project stakeholders, especially primary stakeholders; b. describes the consultation and participation mechanisms to be used during the different stages of the project cycle; c. describes the activities undertaken to disseminate project and resettlement information during project design and preparation for engaging stakeholders; d. summarizes the results of consultations with affected persons (including host communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan; e. confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and f. describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

6. Grievance Redress Mechanisms This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.

7. Compensation, Relocation of Housing and Settlements and Income Restoration This section: a. describes options for relocating housing and other structures, including replacement housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified); b. describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs; c. provides timetables for site preparation and transfer; d. describes the legal arrangements to regularize tenure and transfer titles to resettled persons; e. outlines measures to assist displaced persons with their transfer and establishment at new sites; f. describes plans to provide civic infrastructure; and g. explains how integration with host populations will be carried out. h. identifies livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources; i. describes income restoration programs, including multiple options for restoring all types of livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets); j. outlines measures to provide social safety net through social insurance and/or project special funds; k. describes special measures to support vulnerable groups; l. explains gender considerations; and m. describes training programs.

Appendix 1 21

8. Institutional Arrangements This section: a. describes institutional arrangement responsibilities and mechanisms for carrying out the measures of the resettlement plan; b. includes institutional capacity building program, including technical assistance, if required; c. describes role of NGOs, if involved, and organizations of affected persons in resettlement planning and management; and d. describes how women’s groups will be involved in resettlement planning and management,

9. Resettlement Budget and Financing Plan This section: a. provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation. b. describes the flow of funds (the annual resettlement budget should show the budget- scheduled expenditure for key items). c. includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs. d. includes information about the source of funding for the resettlement plan budget.

10. Implementation Schedule This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline.

11. Monitoring and Reporting This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

Appendices List of Affected Persons/Households/Legal Entities Public Information Brochure (PIB)

22 Appendix 2

DRAFT FORMAT FOR AN INDIGENOUS PEOPLES PLAN

A. Executive Summary of the Indigenous Peoples Plan

This section concisely describes the critical facts, significant findings, and recommended actions.

B. Description of the Project

This section provides a general description of the project; discusses project components and activities that may bring impacts on Indigenous Peoples; and identify project area.

C. Social Impact Assessment

This section: (i) reviews the legal and institutional framework applicable to Indigenous Peoples in project context. (ii) provides baseline information on the demographic, social, cultural, and political characteristics of the affected Indigenous Peoples communities; the land and territories that they have traditionally owned or customarily used or occupied; and the natural resources on which they depend. (iii) identifies key project stakeholders and elaborate a culturally appropriate and gender-sensitive process for meaningful consultation with Indigenous Peoples at each stage of project preparation and implementation, taking the review and baseline information into account. (iv) assesses, based on meaningful consultation with the affected Indigenous Peoples communities, the potential adverse and positive effects of the project. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live. (v) includes a gender-sensitive assessment of the affected Indigenous Peoples’ perceptions about the project and its impact on their social, economic, and cultural status. (vi) identifies and recommends, based on meaningful consultation with the affected Indigenous Peoples communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identifies measures to minimize, mitigate, and/or compensate for such effects and to ensure that the Indigenous Peoples receive culturally appropriate benefits under the project

D. Information Disclosure, Consultation and Participation

This section: (i) describes the information disclosure, consultation and participation process with the affected Indigenous Peoples communities that was carried out during project preparation; (ii) summarizes their comments on the results of the social impact assessment and identifies concerns raised during consultation and how these have been addressed in project design;

Appendix 2 23

(iii) in the case of project activities requiring broad community support, documents the process and outcome of consultations with affected Indigenous Peoples communities and any agreement resulting from such consultations for the project activities and safeguard measures addressing the impacts of such activities; (iv) describes consultation and participation mechanisms to be used during implementation to ensure Indigenous Peoples participation during implementation; and (v) confirms disclosure of the draft and final IPP to the affected Indigenous Peoples communities.

E. Beneficial Measures

This section specifies the measures to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate, and gender responsive.

F. Mitigative Measures

This section specifies the measures to avoid adverse impacts on Indigenous Peoples; and where the avoidance is impossible, specifies the measures to minimize, mitigate and compensate for identified unavoidable adverse impacts for each affected Indigenous Peoples groups.

G. Capacity Building

This section provides measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address Indigenous Peoples issues in the project area; and (b) Indigenous Peoples organizations in the project area to enable them to represent the affected Indigenous Peoples more effectively.

H. Grievance Redress Mechanism

This section describes the procedures to redress grievances by affected Indigenous Peoples communities. It also explains how the procedures are accessible to Indigenous Peoples and culturally appropriate and gender sensitive.

I. Monitoring, Reporting and Evaluation

This section describes the mechanisms and benchmarks appropriate to the project for monitoring, and evaluating the implementation of the IPP. It also specifies arrangements for participation of affected Indigenous Peoples in the preparation and validation of monitoring, and evaluation reports.

J. Institutional Arrangement

This section describes institutional arrangement responsibilities and mechanisms for carrying out the various measures of the IPP. It also describes the process of including relevant local organizations and NGOs in carrying out the measures of the IPP.

K. Budget and Financing

This section provides an itemized budget for all activities described in the IPP.