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49086-001: Upper Trishuli-1 Hydropower Project Land Acquisition and Livelihood Restoration Plan Project Number: 49086-001 December 2018 NEP: Upper Trishuli-1 Hydropower Project Prepared by Environmental Resources Management (ERM) for Nepal Water & Energy Development Company Pvt. Ltd. And the Asian Development Bank. The land acquisition and livelihood restoration plan 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. 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. Land Acquisition and Livelihood Restoration Plan Upper Trishuli-1 Hydropower Project, Nepal Final Report December 2018 www.erm.com The business of sustainability FINAL REPORT Nepal Water and Energy Development Company Land Acquisition and Livelihood Restoration Plan Upper Trishuli-1 Hydropower Project, Nepal 04 December 2018 Reference # I12442/0402091 Prepared by: Akshita Misra Consultant Reviewed by: Swayam Panda Technical Director Approved by: Neena Singh Partner This report has been prepared by ERM India Private Limited a member of Environmental Resources Management Group of companies, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. CONTENTS EXECUTIVE SUMMARY 0 ABBREVIATIONS GLOSSARY 1 INTRODUCTION 1 1.1 PREAMBLE 1 1.2 PROJECT OVERVIEW AND BACKGROUND 1 1.2.1 Project Footprint and Area of Influence 2 1.3 SCOPE OF THE LALRP 5 1.4 SUMMARY OF APPROACH AND METHODOLOGY 5 1.4.1 Study Challenges and Limitations 7 1.5 LAYOUT OF THE REPORT 8 2 LAND REQUIREMENT FOR THE PROJECT 9 2.1 LAND AND STRUCTURE ACQUISITION FOR THE PROJECT 9 2.2 PROJECT AFFECTED FAMILIES 11 2.3 CUT OFF DATE FOR THE PROJECT 15 3 ADMINISTRATIVE FRAMEWORK 17 3.1 NATIONAL REGULATIONS 17 3.1.1 The Constitution of Nepal, 2072 BS (2015 AD) 17 3.1.2 Applicable National Regulations 20 3.2 APPLICABLE STANDARDS OF INTERNATIONAL DEVELOPMENT FINANCE INSTITUTIONS 22 3.3 PROJECT DEVELOPMENT AGREEMENT WITH MINISTRY OF ENERGY 24 4 SOCIO ECONOMIC BASELINE 26 4.1 RASUWA DISTRICT SOCIO-ECONOMIC BASELINE 26 4.1.1 Demographic Profile 26 4.1.2 Social Groups 28 4.1.3 Education Profile 30 4.1.4 Livelihood Profile + 30 4.1.5 Health 31 4.1.6 Water Supply and Sanitation 31 4.1.7 Energy Use 32 4.2 SOCIO ECONOMIC PROFILE OF THE PROJECT AOI 32 4.2.1 Demographic Profile 32 4.2.2 Social Groups 34 4.2.3 Family Structure 35 4.2.4 Education and Literacy 36 4.2.5 Land Use and Ownership 37 4.2.6 Livelihood Profile 39 4.2.7 Dependence on Natural Resources 52 4.2.8 Annual Income and Expenditure 53 4.2.9 Social and Physical Infrastructure 55 4.2.10 Vulnerable Population 57 5 STAKEHOLDER IDENTIFICATION AND MAPPING 59 5.1 ENGAGEMENT ACTIVITIES UNDERTAKEN 60 5.1.1 Land Take Process Engagement (2009 – 2012) 61 5.1.2 EIA and ESIA Process Engagement 62 5.1.3 LRP Formulation Engagement (2015) 62 5.1.4 Post-Earthquake Relief Activities and Engagement (2015) 65 5.1.5 Gap Assessment Process Engagement (2016) 66 5.1.6 LALRP Development Process Engagement (2017) 67 5.1.7 FPIC Process Engagement (2017-ongoing) 69 5.2 KEY FEEDBACK AND CONCERNS 72 5.3 GRIEVANCE REDRESSAL MECHANISM 75 6 PROJECT IMPACTS AND MITIGATION MEASURES 77 6.1 IMPACT ON PRIVATE LAND AND GUTHI LAND 79 6.1.1 Context 79 6.1.2 Land Acquisition Process 81 6.1.3 PS 5 Applicability 90 6.1.4 Existing Mitigation Measures 92 6.1.5 Residual Impacts and Emerging Issues Post Earthquake 93 6.1.6 Additional Mitigation Measures 96 6.2 LOSS OF STRUCTURE 96 6.2.1 Context 96 6.2.2 Structure Valuation Process 97 6.2.3 Mitigation Measures already Undertaken 99 6.2.4 Residual Impacts and Emerging Issues Post Earthquake 99 6.2.5 Additional Mitigation Measures 100 6.3 IMPACT DUE TO LOSS OF CROPS AND TREES 100 6.3.1 Context 100 6.3.2 Crop and Tree Valuation 102 6.3.3 Existing Mitigation Measures 103 6.3.4 Residual Impacts and Emerging Issues Post Earthquake 103 6.3.5 Additional Mitigation Measures 104 6.4 IMPACT ON USE OF COMMUNITY FOREST 104 6.4.1 Context 104 6.4.2 Existing Mitigation Measures 108 6.4.3 Residual Impacts and Emerging Issues Post Earthquake 109 6.4.4 Additional Mitigation Measures 110 6.5 IMPACT ON NATURAL RESOURCES 111 6.5.1 Context 111 6.5.2 Existing Mitigation Measures 111 6.5.3 Residual Impacts and Emerging Issues Post Earthquake 112 6.5.4 Additional Mitigation Measures 112 6.6 IMPACT DUE TO CREATION OF EMPLOYMENT OPPORTUNITY 113 6.7 GAPS AGAINST WBG PS 5 AND ADB REQUIREMENTS 113 7 LIVELIHOOD RESTORATION PLAN 119 7.1 CONTEXT 119 7.1.1 Present Residence and Associated Vulnerabilities 120 7.1.2 Project Compensation Money and Impact on Livelihood 120 7.1.3 Aftermath of the Earthquake and immediate relief activities 120 7.1.4 Post-Earthquake- Livelihood Changes in Project Area 121 7.1.5 NGO activity in the Rasuwa District 122 7.1.6 Consideration in the Identification of Entitlements going forward 130 7.2 PRINCIPLES GOVERNING THE RESETTLEMENT AND REHABILITATION PROCESS 131 7.2.1 Process Commitments 132 7.3 ELIGIBLE ENTITIES IDENTIFIED 132 7.4 ENTITLEMENTS FOR RESETTLEMENT AND REHABILITATION 132 7.5 PROCESS OF IMPLEMENTATION OF ENTITLEMENTS IDENTIFIED 136 7.5.1 Disclosure of LALRP 136 7.5.2 Identification of an Implementation Partner and Other Associated Organizations 137 7.5.3 Individual PAF Micro Plans and Agreements 137 7.5.4 Implementation of Specific Entitlements 138 8 IMPLEMENTATION MECHANISM 148 8.1 MANPOWER REQUIREMENTS 148 8.1.1 Internal Resources 148 8.1.2 External Resources 149 8.1.3 Roles and Responsibilities 149 8.1.4 Training of Implementation Team 151 8.1.5 Coordination with EPC and Sub-Contractors 151 8.2 IMPLEMENTATION SCHEDULE 152 8.3 TENTATIVE BUDGET 153 9 REPORTING AND MONITORING 155 9.1 REPORTING 155 9.2 MONITORING AND REVIEW 156 9.2.1 Internal Monitoring and Review 156 9.2.2 External Review and Completion Audit 158 List of Table Table 1.1 Change in Administrative Structure for Project AoI 3 Table 1.2 Stakeholder Engagement as part of the LALRP Process 5 Table 1.3 Date of Survey Completion in Each Major Settlement 7 Table 2.1 Land Requirement for the Project 10 Table 2.2 Details of land Loser for UT-1 Project 12 Table 2.3 Distribution of PAFs 13 Table 3.1 Key National Regulations and Conventions Applicable for the Project 21 Table 3.2 Applicable International Standards 22 Table 4.1 Sources of Information for Baseline 26 Table 4.2 Rasuwa District Demographic Profile 27 Table 4.3 women’s Ownership of Assets 29 Table 4.4 Demographic Profile of the VDCs in the Project AoI 32 Table 4.5 Age Structure of the population in VDCs in AoI (%) 33 Table 4.6 Demographic Profile of PAFs 33 Table 4.7 Educational Status of the Project AoI (% of total surveyed population in 2014) 36 Table 4.8 Land Holdings amongst the PAFs Surveyed 38 Table 4.9 Vulnerable Groups Identified 57 Table 5.1 Stakeholder Significance and Engagement Requirement 59 Table 5.2 Summary of Stakeholder Identification and Analysis 60 Table 5.3 List of Stakeholder Consultations Undertaken 63 Table 5.4 List of Consultations undertaken as part of Gap Assessment 66 Table 5.5 Stakeholder Engagement as part of the LALRP Process 68 Table 6.1 Summary of Project Related Impacts 77 Table 6.2 List of land Loser for UT-1 Project 80 Table 6.3 Timeline of Private Land take 81 Table 6.4 Summary of Impacted Structures 97 Table 6.5 Tree loss on the Private and Guthi land parcels 100 Table 6.6 Community Forest Affected by the Project 104 Table 6.7 Cash Compensation paid to CFUG 108 Table 6.8 Gap Assessment against Applicable Reference Framework 114 Table 7.1 Key NGOs in Rasuwa District According to Area of Interest 123 Table 7.2 Livelihood Support by Main NGOs in Rasuwa District 125 Table 7.3 Details of Training (earthquake affected families residing in Naubise Camp) 126 Table 7.4 Trainings provided by the Cottage Industry Department in Dhunche 126 Table 7.5 Characteristics and Expectation of Target Groups 129 Table 7.6 Summary of identified entitlements for impacted entities 133 Table 7.7 Livelihood Entitlement Options summary 136 Table 7.8 Implementation of Specific Entitlements 139 Table 8.1 Tentative Implementation Schedule 152 Table 8.2 Tentative Budget 153 Table 9.1 Reporting types, frequency and details 155 Table 9.2 KPIs to be monitored 156 List of Figure Figure 1.1 Upper Trishuli 1 Project Location 2 Figure 1.2 Project Layout against the Revised Administrative Structure 4 Figure 2.1 Geographical Spread of the PAFs- Pre Earthquake and Post Earthquake 14 Figure 3.1 Old Administrative Structure of Nepal 18 Figure 3.2 New Administrative Structure of Nepal 18 Figure 3.3 Changed Administrative Structure in Rasuwa District 19 Figure 4.1 Rasuwa District Map 27 Figure 4.2 Distribution of population by Age in the Rasuwa District 28 Figure 4.3 Ethnic Composition of the Rasuwa District 29 Figure 4.4 Educational Profile for the Rasuwa District 30 Figure 4.5 Age Wise Classification of the PAFs 34 Figure
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