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Compensation Policy Issue United Nations Environment Programme Dams and Development Project Compendium on Relevant Practices - 2nd Stage Compensation Policy Issue Monetary compensation for lost assets and loss of access to resources Livelihood restoration and enhancement Community development Catchment development Final Report Prepared by: Mr. Vincent ROQUET, Sociologist and Planner, Lead Consultant with Ms. Carine DUROCHER, Anthropologist Vincent Roquet & Associates Inc. 560 Sainte-Croix Avenue, suite 101, Montreal (Quebec) Canada, H4L 3X5 Tel: +1 (514) 849-3030; Fax: +1 (514) 849-3322 Email: [email protected] September 15th, 2006 Table of Contents Page EXECUTIVE SUMMARY....................................................................................................................... vi 1 – INTRODUCTION ................................................................................................................................ 1 1.1 Context........................................................................................................................................ 1 1.2 Study Objective........................................................................................................................... 1 1.3 Study Process.............................................................................................................................. 2 1.4 Contents of Final Report............................................................................................................. 2 2 – METHODOLOGY............................................................................................................................... 3 2.1 Links with Benefit Sharing Priority Issue................................................................................... 3 2.2 Focus of Search for Relevant Policy/Legal Frameworks............................................................ 5 2.3 Selection Process for Relevant Examples................................................................................... 6 3 – CHARACTERISATION OF COMPENSATION POLICY ISSUE................................................ 9 3.1 Need for Improved Compensation for Lost Assets.................................................................... 9 3.2 International Policies and Guidelines....................................................................................... 11 3.3 State of the Art and of the Practice .......................................................................................... 16 4 – DESCRIPTION OF RELEVANT EXAMPLES ............................................................................. 19 4.1 Costa Rican Expropriation Law and Inter-American Development Bank Requirements for Development Projects: The Arenal Dam............................................................................. 19 4.2 Brazilian Environmental Legislation and Second Master Plan for the Protection and Improvement of the Power Sector Works and Services: The Salto Calxias Dam..................... 25 4.3 Resettlement Policy of the Electricity Sector in Columbia: The Urra 1 Dam........................... 33 4.4 Opimiscow-La Grande (1992) Agreement between Hydro-Québec and Cree Indigenous Communities: The Laforge-1 Dam ........................................................................................... 43 4.5 Hydro-Québec’s Integrated Enhancement Program and Participatory Approach on Partnerships with Indigenous Communities: The Sainte-Marguerite-3 Dam ........................... 51 4.6 Indonesian Expropriation Law and World Bank Operational Manual on Social Issues Associated with Involuntary Resettlement: The Saguling and Cirata Dams ............................ 60 4.7 Draft Chinese Regulation for Land Acquisition and Resettlement for the Construction of Large and Medium Size Water Conservancy Projects and World Bank Operational Directive OD 4.30 on Involuntary Resettlement: The Shuikou Dam ....................................... 67 4.8 Indian Land Acquisition Act, NHPC Resettlement and Rehabilitation Framework and CIDA and SIDA Requirements for Development Projects: The Chamera and Uri Dams........ 76 4.9 Treaty for the Joint Development and Utilisation of the Resources of the Komati Basin between Swaziland and South Africa and Maguga Resettlement and Compensation Policy Document: The Maguga Dam........................................................................................ 84 4.10 Pakistani Land Acquisition Act and World Bank Operational Directive OD 4.30 on Involuntary Resettlement: The Ghazi Barotha Dam................................................................. 91 5 – DISCUSSION OF STUDY RESULTS ............................................................................................. 99 APPENDIX – Data Base of References on Compensation Policy...................................................... 101 List of Acronyms ADB Asian Developement Bank AFD ‘Agence Francaise de Dévelopment’ or French Development Agency AfDB African Development Bank ANEEL National Electrical Agency (Brazil) BAPE ‘Bureau d’Audiences Publiques pour l'Environnement’ or Environmental Hearings Board (Québec, Canada) CCDC Cree Construction and Development Company (Québec, Canada) CIDA Canadian International Development Agency Coface France’s export credit agency COPEL ‘Companhia Paranaese de Energia’ or Parana Energy Company (Brazil) COMASE Coordinating Committee for Environmental Operations of the Power Sector (Brazil) CONAMA National Council for the Environment (Brazil) CRA Cree Regional Authority (Québec, Canada) CRAB Regional Commission for People Affected by Dam Construction (Brazil) CRABI Commission of People Affected by Dams Construction on the Iguaçu River (Brazil) DBSA Development Bank of Southern Africa DDP Dams and Development Project DFID Department for International Development (United Kingdom), ECIDI East China Investigation and Design Institute EDC Export Development Corporation (Canada) EKN Swedish Export Credit Agency ERC Ekuvinjelweni Resettlement Committee (Swaziland) FAO Food and Agriculture Organisation FPEPB Fujian Provincial Electric Power Bureau (China) GBTI ‘Ghazi Barotha Taraqiati Idra’ or Gazhi Barotha Project NGO (Pakistan) GEM CX Salto Caxias Multidisciplinary Studies Group (Brazil) GCC-EI Grand Council of the Crees – Eeyou Istchee (Québec, Canada) GTZ German Corporation for International Cooperation HQI Hydro-Québec International IAP Environmental Institute of Paraná (Brazil) IBAMA Brazilian Institute of Environment and Renewable Natural Resources ICE ‘Institúto Costarricense de Electricidad’ or Costa Rica Electricity Institute iii ICLARM International Center for Living Aquatic Resource Management ICOLD International Commission on Large Dams IDB Inter-American Develpment Bank INDERENA Natural Resources Development Institute (Colombia) IEA International Energy Agency IFC International Finance Corporation ILEC International Lake Environment Committee IOE Institute of Ecology of the Padjadjaran University in Bandung (Indonesia) IUCN International Union for the Conservation of Nature JBIC Japan Bank for International Co-operation JBNQA James Bay and Northern Quebec Agreement (Québec, Canada) JICA Japan International Development Agency KCRC Komati Community Representative Committee (Swaziland) KfW German Bank for Development KOBWA Komati Basin Water Authority LVC Land Valuation Committee (Pakistan) MAB National Movement of People Affected by Dams (Brazil) MMA Brazil Ministry of the Environment, Water Resources and Legal Amazon MMA Ministry of the Environment (Colombia) MOI Ministry of the Interior (Colombia) MCR Regional County Municipality (Québec, Canada) MST Landless Workers Movement (Brazil) NAB National Accountability Bureau (Pakistan) NGO Non-Governmental Organisation NHPC National Hydroelectric Power Corporation (India) NORAD Norwegian International Development Agency NTPC National Thermal Power Corporation (India) NWFP North-West Frontier Province (Pakistan) ODA Overseas Development Assistance (United Kingdom) OECD Organisation for Economic Cooperation and Development OECD/DAC OECD - Development Assistance Committee OECF Overseas Economic Co-operation Fund (Japan) OED World Bank Operations Evaluation Department ONIC National Indigenous Organization of Colombia PLN ‘Perusahaan Umum Listrik Negara’ or Indonesian National State Electric Company iv PMVI ‘Programme de Mise en Valeur Integrée’ or Integrated Enhancement Program (Hydro-Québec, Canada) SANDRP South Asia Network on Dams, River and People SADC Southern African Development Community SDBJ ‘Société de Développement de la Baie James’ or James Bay Development Corporation (Québec, Canada) SEB State Electricity Board (India) SEBJ ‘Société d’Énergie de la Baie James’ or James Bay Electricity Corporation (Québec, Canada) SIDA Swedish International Development Agency SKPE Swaziland Komati Project Enterprise SRRO Shuikou Reservoir Resettlement Office (China) UN United Nations UNCHR United Nations Commission on Human Rights UNCHS/Habitat United Nations Centre of Human Settlements UNDP United Nation Development Program UNEP United Nation Environment Program USAID United States Agency for International Development VRA Vincent Roquet & Associates Inc. WAPDA Water and Power Development Authority (Pakistan) WCD World Commission on Dams WWF World Wildlife Federation v Executive Summary ¾ Study Context and Objectives The Dams and Development (DDP) programme is tasked with improving decision-making and management of dams and their alternatives, building on the core values and strategic
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