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Resettlement Plan Due Diligence Report

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Resettlement Plan Due Diligence Report Ebeye Water Supply and Sanitation Project (Additional Financing) (RRP RMI 46346) Due Diligence Report Project Number: 46346-003 Date: October 2020 Republic of the Marshall Islands: Ebeye Water Supply and Sanitation Project (Additional Financing) Prepared by the Kwajalein Atoll Joint Utility Resources, Inc. (KAJUR) for the Asian Development Bank. This due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. ABBREVIATIONS ADB – Asian Development Bank ASPA – American Samoa Power Authority COVID-19 – coronavirus disease DBO – design-build-operate DDR – due diligence report EA – executive agency (MOF) EIA – environmental impact assessment EMP – environmental management plan EWSSP – Ebeye Water Supply and Sanitation Project FY – Financial year GORMI – Government of the Republic of the Marshall Islands GRM – grievance redress mechanism IA – implementing agency (MOI) KADA – Kwajalein Atoll Development Authority KAJUR – Kwajalein Atoll Joint Utility Resources Inc. PMU – Project Management Unit PSC – project steering committee RMI – Republic of the Marshall Islands SPS – Safeguards Policy Statement WEIGHTS AND MEASURES ha - hectare m - meter m2 - square meter m3 - cubic meter TEU - twenty-foot equivalent units ii EXECUTIVE SUMMARY On 28 September 2015, the Asian Development Bank (ADB) approved a project grant for the administration of the Ebeye Water Supply and Sanitation Project (EWSSP). The project impact will be reduced incidence of waterborne disease on Ebeye and the project outcome will be improved access to safe water and improved sanitation. The Project has five outputs: (i) secure and safe freshwater supplies; (ii) effective and efficient sewerage services; (iii) enhanced hygiene awareness and improved hygiene behaviors; (iv) secure electricity supply for water and sewerage operations; and (v) financial and technically sustainability of the Kwajalein Atoll Joint Utility Resources Inc. (KAJUR). The project was declared effective on 3 December 2015 and is scheduled to close on 30 June 2022. Substantial progress has been made towards delivering the project’s impact, outcome, and outputs. However, further assistance is required to ensure that the Project remains sustainable. The additional financing (the project) will support the operation and maintenance to ensure the sustainability of the current project and improve water supply and hygiene behaviors essential to prevent the transmission of the coronavirus disease (COVID-19). This Due Diligence Report (DDR) has been prepared to record the due diligence process that was conducted to examine the land acquisition and resettlement impacts of the additional financing. This DDR will be disclosed to key stakeholders and uploaded onto the ADB website. Scope of Land Acquisition and Involuntary Resettlement The additional financing components will not require additional land acquisition, nor will there be any involuntary resettlement impacts. Most activities to be implemented under the additional financing involve capacity development and organizational strengthening of KAJUR. There are three components that will require civil works and/or related activities. (i) The upgrade of the desalination plant will involve anti-corrosion protection treatment to pipes and equipment, minor structural improvements, and the addition of a back- up generator. The upgrading activities will be located within the existing KAJUR facility where the desalination plant is located. The KAJUR facility is under a master lease agreement with the traditional landowners. There will be no physical or economic displacement impacts. (ii) The installation of the high-voltage electrical switchgear will be located within the existing KAJUR power station. This KAJUR facility is under a master lease agreement. There will be no physical or economic displacement impacts. (iii) The additional financing will also extend the household fixtures program for 2 years to enhance demand management by reducing water wastage from faulty plumbing fixtures and to ensure the poorest households can have access to safe water and improved sanitation. The program will be conducted with the consent of owners and will not have adverse impacts on structures or assets. There are no known legacy issues, land disputes or cumulative impacts related to the original project and additional financing. Indigenous Peoples The people of Ebeye do not meet the ADB criteria (distinctiveness and vulnerability) of indigenous peoples. They are part of mainstream Micronesian society, and there are no communities on Ebeye that have cultural, social, and political institutions distinct from dominant society. The additional financing will not directly or indirectly affect the dignity, human rights, livelihood systems or culture of indigenous peoples. Impacts on livelihoods or the cultural, ceremonial, and spiritual uses are not envisaged to any groups. Consultations and Information Disclosure Consultations were carried out with key project stakeholders on Ebeye to ensure that the final project design has stakeholder ownership and sustainably addresses the needs of project beneficiaries including the Government of RMI, the Kwajalein Leadership, the Kwajalein Atoll Local Government (KALGOV), KAJUR and more importantly, the wider Ebeye community. Results from these consultations were shared with the project feasibility team and incorporated into design. During project implementation, these consultations will continue with identified key stakeholders, as well as households that live near to the desalination plant and power station. A community wide communications campaign about the household fixtures program will continue during the additional financing, and additional consultations will be held with communities of Loi, Ebwaj, and Guegeegue regarding their sanitation systems. This due diligence report will be disclosed to the project steering committee and uploaded onto the ADB website. Grievance Redress Mechanism A grievance redress mechanism (GRM) has been established to uphold social and environmental safeguards performance by addressing concerns and complaints promptly and transparently with no impacts (cost, discrimination) for any reports made by affected peoples. The GRM works within existing legal and cultural frameworks, providing an additional opportunity to resolve grievances at the local, project level. Legal Framework The project’s principles relating to social safeguards are guided by RMI Laws and ADB SPS principles on land acquisition, resettlement, and compensation. The principal Marshall Islands laws governing land acquisition, resettlement, and compensation presently include (i) RMI Constitution and (ii) Land Acquisition Act 1986. Institutional Arrangements The executing agency is the Office of the Chief Secretary, and the implementing agency is KAJUR. A project steering committee (PSC) provides strategic direction and guidance. A project management unit (PMU) has been established within KAJUR and is responsible for the overall implementation of the project and additional financing. Monitoring and Reporting The PMU will monitor all unanticipated social safeguards impacts on an ongoing basis and report these matters within the project’s quarterly progress reports and semi-annual safeguard monitoring reports. If there are changes during implementation that require land or cause additional impacts, KAJUR will prepare an updated due diligence report or resettlement plan. The safeguards documents will be cleared by ADB and uploaded to the ADB website prior to the commencement of land clearance and construction works. i CONTENTS ABBREVIATIONS EXECUTIVE SUMMARY I. INTRODUCTION 1 II. BACKGROUND 1 III. PROJECT DESCRIPTION 3 IV. SCOPE OF LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT IMPACTS 1 V. INDIGENOUS PEOPLES 3 VI. CONSULTATIONS AND INFORMATION DISCLOSURE 4 VII. GRIEVANCE REDRESS MECHANISM 5 VIII. LEGAL FRAMEWORK 6 IX. INSTITUTIONAL ARRANGEMENTS 7 X. MONITORING AND REPORTING 8 XI. ANNEXES 1 ii I. INTRODUCTION 1. In September 2015, the Asian Development Bank (ADB) approved a grant for the Ebeye Water Supply and Sanitation Project (EWSSP) for the Republic of the Marshall Islands. The project is being co-funded by the Government of Australia, with counterpart funds from the Government of the Republic of the Marshall Islands. The project is scheduled to close on 30 June 2022. The Government of the Republic of the Marshall Islands has requested additional financing to support the operation and maintenance to ensure the sustainability of the current project and improve water supply and hygiene behaviors essential to prevent the transmission of the coronavirus disease (COVID-19). 2. The project and the proposed additional financing is aligned with RMI’s water and sanitation policy objectives, as articulated in RMI’s draft National Strategic Plan 2020-2030 of (i) improved sanitation for better health and well-being, and (ii) constant access to drinking water that meets World Health Organization standards.1 The project will contribute to goal 6 of the Sustainable
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