RESETTLEMENT ACTION PLAN FOR THE MOZAMBICAN Public Disclosure Authorized INTEGRATED TRANSMISSION BACKBONE SYSTEM (STE PROJECT) – PHASE 1: VILANCULOS - MAPUTO DRAFT REPORT Public Disclosure Authorized Prepared for Prepared by: Public Disclosure Authorized Illuminating the Transformation of Consultec – Consultores Associados, Lda. Mozambique Public Disclosure Authorized April 2019 RESETTLEMENT ACTION PLAN FOR THE MOZAMBICAN INTEGRATED TRANSMISSION BACKBONE SYSTEM (STE PROJECT) – PHASE 1: VILANCULOS - MAPUTO FINAL REPORT Electricidade de Moçambique, E.P. Av. Zedequias Manganhela, No. 267 Prédio Jat IV – 1st Floor Maputo, Mozambique Tel: +258 21308946 Fax: +258 21431029 Consultec - Consultores Associados, Lda. WSP Environmental (Pty) Ltd Rua Tenente General Oswaldo Tazama, No. 169 South View, Bryanston Place Maputo, Mozambique 199 Bryanston Drive Bryanston, South Africa Tel: +258 21491555 Tel: +27 11 361 1392 Fax: +258 21491578 Fax: +27 11 361 1381 April 2019 Resettlement Plan – Final Report 2 TERMS AND DEFINITIONS Census: A field survey – in census format, i.e. reflecting 100% of sample group – carried out to identify and determine the number of project affected persons (PAPs) and their assets, socio- economic circumstance and livelihood strategies; conducted in accordance with the procedures and regulations guided by the National legislation and World Bank Safeguard Policies. The census is complemented by additional information gathered during consultations with affected communities and local leaders and district authorities. Compensation: Monetary payments or in-kind replacement (such as land for land or house for house), to which the PAP’s are entitled to replace lost assets, income and/or resources. Cut-off date: is not stipulated within the national legislation and as such is considered to be the date on which the census data reflecting the information (see census above) on PAPs is approved by the local communities and district authorities in a particular geographically bound area. This is the date on which possession, occupation and assets are confirmed and beyond which any person(s) who subsequently occupies land within the partial protection zone (PPZ), will not be eligible for compensation. The legitimacy of claims made subsequent to cut-off date will, however, be assessed within the grievance management mechanism (GMM) and claimants found to have a valid claim shall be considered eligible. Entitlements: are considered a range of measures defined in this report such as monetary and in- kind compensation, disturbance measures, relocation and livelihood restoration packages which are due to the PAP’s in accordance with their losses, in order to restore their social and economic base. Grievance Management Mechanisms (GMM): institutionalised procedures, tools and processes that serve as a means to timeously address and resolve complaints and conflict emanating from the Project and ensure that the rights and entitlements of the PAP’s and affected communities are not undermined by the Project. It facilitates communication and dialogue between affected people and the Project and provides a transparent, neutral and impartial arbiter to which PAP’s may appeal to address any Project related concern, such as compensation, entitlement, relocation and livelihoods restoration. Involuntary resettlement: involves the separate processes of displacement and resettlement. On the one hand, it refers to both physical displacement (loss of home or shelter) and economic displacement (loss of assets or access to assets – including natural resources – which leads to loss of income or means of livelihood). On the other it refers to the processes of resettlement of individuals, households and/or communities either temporarily or permanently and which is generally associated with processes by which those adversely affected by displacement processes are assisted in their efforts to improve, or at least restore, their incomes and livelihoods. Resettlement is considered involuntary when PAP’s do not have the right to refuse the land acquisition which results in their displacement. Land acquisition: all methods utilised to obtain land for the purposes of the project. In this context, land acquisition involves temporary or permanent revocation of the right to utilise the land (land use right) or the imposition of limits and restrictions to the land use right. Resettlement Plan – Final Report 3 Livelihoods: the full range of means and strategies which individuals, households and/or communities draw on and utilise in order to make a living and/or sustain themselves. It includes wage-based income, bartering and trade, subsistence agriculture and fishing, foraging and making use of other natural resources, amongst other things. Machamba: agricultural land plot, typically utilised for subsistence farming in Mozambique. Project affected persons (PAPs): individuals, households, groups and/or communities who, as a result of land acquisition or involuntary displacement (either permanently or temporarily) are adversely affected, either economically and/or socially (psychologically, emotionally and in terms of social networks). PAPs include all those adversely impacted by the project, irrespective of whether they hold formal legal rights to assets or land, they have a claim to said assets or land that is recognisable under national legislation or whether they hold no recognisable legal right or claim to assets and/or land which they use and/or occupy in function of their livelihoods. Replacement cost: a method of valuation that results in compensation (as defined above) sufficient to replace a lost asset. This valuation in principle reflects current market prices or the equivalent and includes all necessary transaction costs associated with asset replacement. Resettlement Assistance: measures implemented to ensure that PAP’s who may be required to be physically relocated, regardless of their tenure rights and in addition to compensation for lost assets where necessary, are provided with assistance, such as moving allowances, land, residential housing or rentals whichever is deemed prudent, livelihood support and compensation for any transitional losses. Resettlement Action Plan (RAP): time bound resettlement plan, setting out schedule and costs, objectives and actions and including legislative framework, eligibility criteria, entitlements, institutional arrangements and framework for the monitoring and evaluation of the resettlement implementation process. Vulnerable Groups: Individuals and/or households who are more likely to be confronted with multiple and compounding barriers and/or challenges to restoring and improving their standards of living and as such will take longer to return to pre-resettlement livelihood standards, and hence may be disproportionately affected by the impacts of involuntary resettlement. Such individuals and households are considered to include female headed households, child headed households, households headed by the elderly and/or those with disabilities are examples of vulnerable households, as are households with members who are chronically ill, have no members who are employed, have incomes below the national poverty line, suffer from chronic food insecurity and/or have low levels or no education. Resettlement Plan – Final Report 4 Executive Summary Introduction Relatively strong economic growth in Mozambique over the past two decades, has resulted in the countries increased demand for electricity. In addition, the countries relatively significant generational potential is perceived as an important cog within the Southern African Power Pool (SAPP). The Mozambican Energy Sector Strategy of 2009 recognises both these issues and identifies them as important factors contributing to national and regional economic growth and poverty alleviation. Mozambique’s power supply network, operated by the national utility (EDM), is currently comprised of two separate and isolated power systems: Central Northern system – fed by Cahora Bassa hydropower plant (2 075 MW capacity), as well as by other smaller plants, namely Chicamba and Mavuzi hydropower plants (38 MW and 52 MW, respectively) and a gas turbine power plant in Beira (12 MW). This system supplies the northern and central regions of Mozambique, namely through the following infra- structure: o 220kV transmission line from Songo-Matambo substation to Nampula substation and 110kV system, which connects to Nacala, Moma, Lichinga, Pemba, Auasse and Marromeu; o 220kV transmission line from Songo-Matambo substation to Chibata substation. From Chibata substation at a voltage level of 110kV there is a link with Chicamba and Mavuzi hydro power plants and then to the main load points namely Beira, Chimoio and Manica. From Manica there is an interconnection with ZESA system at 110kV (Manica – Mutare line). Southern system – fed by the Southern Africa Power Pool (via Maputo and Infulene substations, at 275 kV and 110 kV respectively), as well as by a 16 MW hydropower plant at Corumana and gas-fired generating facilities in Maputo (52 MW capacity) and Ressano Garcia (270 MW capacity). This system supplies the southern region of Mozambique, through a 110-kV system, from the Maputo, Infulene, Lionde, Xai-Xai and Lindela substations. While this transmission and distribution system has been adequate to supply Mozambique’s basic power needs over the past few decades, the continued development of Mozambique’s economy, primarily in relation to the development of mining and oil and gas project’s,