Sfg2992 V2 Rev

SFG2992 V2 REV

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA Public Disclosure Authorized

ETHIOPIAN ELECTRICPOWER (EEP) Public Disclosure Authorized Public Disclosure Authorized

DISTRIBUTION REHABILITATION AND UPGRADING PROJECT

ABBREVIATED RESETTLMENT ACTION PLAN (ARAP) Public Disclosure Authorized

ADAMA TOWN

February 2017

Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

TABLE OF CONTENTS TABLE OF CONTENTS ...... I LIST OF TABLES ...... II ACRONYMS ...... 3 EXECUTIVE SUMMARY ...... 4 1. INTRODUCTION ...... 8 1.1. OBJECTIVE OF THE ARAP ...... 9 2. KEY COMPONENTS OF THE PROJECTAND BIOPHYSICAL PROFILE ...... 9 2.1. DESCRIPTION OF THE PROJECT ...... 9 2.2. PHYSICAL ENVIRONMENT OF THE MV LINES RIGHT OF WAY ...... 11 2.3. PHYSICAL ENVIRONMENT OF THE PROJECT TOWN...... 11 2.4. BIOLOGICAL ENVIRONMENT ...... 12 2.4.1. Vegetation cover ...... 12 2.4.2. Wildlife ...... 12 2.5. SOCIAL ENVIRONMENT ...... 13 2.5.1. Demographic Features ...... 13 2.5.2. Social Service...... 13 2.5.3. Economy ...... 13 2.5.4 Unemployment ...... 14 2.5.5. Prevalent Diseases ...... 14 2.5.6. Sanitation and Waste Disposal Management ...... 14 2.6. ARCHEOLOGICAL, CULTURAL HERITAGE AND RELIGIOUS SITES ...... 15 2.7. INFRASTRUCTURES ...... 15 3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION ...... 16 3.1. EXPROPRIATION LAW ...... 16 3.2. COMPENSATION LAW ...... 16 3.3. GRIEVANCE REDRESS MECHANISM ...... 18 3.4. EEP STRATEGY FOR EXPROPRIATION AND COMPENSATION ...... 19 3.5. WORLD BANK OPERATIONAL POLICIES AND PROCEDURES FOR INVOLUNTARY RESETTLEMENT (OP 4.12 AND BP 4.12) ...... 19 3.6. COMPARISONS OF THE NATIONAL POLICES AND THE WORLD BANK OP 4.12 ...... 20 4. CENSUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE ...... 23 4.1. SUMMARY OF PAPS ASSET INVENTORY ...... 23 4.2. DETAILS OF THE IMPACTS CAUSED BY DISPLACEMENT ...... 23 4.2.1. Impact on Property ...... 23 4.2.2. Impacts on houses and Shop...... 23 4.2.3. Impacts on Eucalyptus Trees ...... 25 4.2.4. Socio-economic Characteristics of Families ...... 26 5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS ...... 26 5.1. ELIGIBILITY FOR ENTITLEMENT ...... 26 5.2. ELIGIBILITY CRITERIA ...... 27 5.3. ENTITLEMENT MATRIX ...... 27 5.4. VALUATION AND COMPENSATION FOR LOSS AND RESETTLEMENT MEASURES ...... 32 5.5. CUT-OFF DATE FOR DETERMINING ELIGIBILITY ...... 34 6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION ...... 34 6.1. PUBLIC CONSULTATION WITH AFFECTED COMMUNITIES, CITY AND KEBELE ADMINISTRATION ..... 34 7. PROPOSED ASSISTANCE FOR PAPS ...... 37 8. INSTITUTIONAL RESPONSIBILITY ...... 37

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9. SOURCE OF BUDGET AND COST ESTIMATE ...... 38 9.1. SOURCE OF BUDGET ...... 38 9.2. COMPENSATION COST ESTIMATE OF SHOPS TO BE RELOCATED ...... 39 9.3. COMPENSATION COST ESTIMATE OF EUCALYPTUS TREES ...... 40 9.4. COMPENSATION COST BREAKDOWN FOR AFFECTED ASSETS ...... 40 10. RESETTLEMENT SCHEDULE ...... 41 11. MONITORING/FOLLOW UP ACTIVITIES ...... 41 12. EVALUATION ...... 42 ANNEX I:MINUTES OF MEETING ...... 44 ANNEX II: PHOTOS ...... 49 ANNEX III: CONTACTED PERSONS ...... 51

LIST OF TABLES

Table 1-1Consolidated Medium Volt Works in Adama Town...... 10 Table 3-1 Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps ...... 20 Table 4-1Affected Houses and Shop ...... 24 Table 4-2. Percentage of lose ……………………………………………………………………...…18 Table 4-4Socio-economic Characteristics of Families ...... 26 Table 4-5 Entitlement Matrix ...... 28 Table 9-1Compensation Cost Estimate of Houses and Shop ...... 39 Table 9-2Compensation Cost Estimate of Affected Eucalyptus Trees ...... 40 Table 9-3Compensation Cost Breakdown for Affected Assets ...... 40 Table 10-1Resettlement Schedule ...... 41

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ACRONYMS

ARAP Abbreviated Resettlement Action Plan CIS Corrugated Iron Sheets EHS&Q Environment, Health, Safety and Quality ETH. Birr Ethiopian Local Currency EEP Ethiopian Electric Power EEU Ethiopian Electric Utility EMP Environmental Monitoring Plan ESMP Environmental and Social Management Plan EPE Environmental Policy of Ethiopia FDRE Federal Republic of Ethiop Ha Hectare MEFCC Ministry of Environment, Forest and Climate Change MV Medium Voltage LV Low Voltage Km Kilo Meter KV Kilo Volt KW Kilo watt MoA Ministry of Agriculture M² Meter square masl Meter Above Sea Level OD Operational Directive OHL Overhead Line OP Operational Policy of the World Bank PAPs Project Affected Persons PIU Project Implementation Unit RIC Resettlement Implementation Committee ROW Right of Way RTU Remote Terminal Unit USD United States Dollar WB World Bank

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EXECUTIVE SUMMARY

This Abbreviated Resettlement Action Plan (ARAP) is prepared for Distribution Rehabilitation and upgrading project for Adama City. The ARAP contains established social inventory of households that are likely to be affected by the distribution rehabilitation and upgrading construction activities and a proposal to mitigate adverse social impacts associated with clearance of the Right of Way (ROW) of the sub-project and its subsequent operation.

From November 15 to November 20, 2016 a team of Sociologists and Environmentalists of Ethiopian Electric Power (EEP) has conducted a Socio-economic survey and asset inventory of the sub-project.

The main objective of the Distribution Rehabilitation and Upgrading Project is to rehabilitate, expand and upgrade the distribution network of the city of Adama to ensure safe system operation and enable connection of new customers.

The main activities of the Distribution Rehabilitation and Upgrading works include:

 Concrete pole foundation civil works and pole erection;  Line stringing;  Laying underground 15 kV cable;  Switching Station erection;  Transformers and Compact substation installation;  Replacement bare low voltage conductors with insulated conductors (area bundled conductors);  Replacement of existing medium voltage conductors with insulated wire.

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including the Operational Policy (OP 4.12), World Bank Involuntary Resettlement Policy, in respect to minimizing impacts, consulting those likely to be affected and planning to assist those to be displaced in restoring their livelihood. The aim is to ensure that those who will be affected by the project are adequately compensated for their losses and/or that their incomes are restored or improved in compliance with the policy. EEP carried out requisite studies to prepare the valuation of properties and made plans for implementation and monitoring of the project activities, to ensure project’s compliance with the Ethiopia’s land regulation and World Bank’s social Safeguards Policies particularly the Involuntary Resettlement.

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

The Federal Democratic Republic of Ethiopia by signing the credit agreements for the Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed itself to abide by the World Bank Policy on involuntary resettlement. Thus, the legal framework of the Project is based on the Constitution of FDRE as transcended into EEP’s procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable resettlement strategy, offering adequate compensation and incentives for loss of land and other sources of livelihood (e.g., loss of income, crop, trees, housing and other structures) and for investments made on land by PAP’s in accordance with the law.

Grievances are first preferred to be settled amicably whenever possible. In the event of dissatisfaction by the PAPs, positive discussions will be made to convince the affected PAP in the presence of elders, local administration (municipalities, Woreda and Kebele administration) representatives or any influential person/s in the locality to first handle the grievance. In the event of continued non-satisfaction by the PAPs, the grievance will be forwarded to the appropriate administrative executive for consideration which may transfer it to court of law if unsolved. PAPs are required to channel their grievances to the Local committee verbally, or through telephone calls, and letters.

To achieve the social mitigation goal, EEP will allocate a budget for compensation payment expected during project implementation. EEP in consultation with Woreda administrations for rural areas and with municipalities for the town sections shall establish property valuation committees as per Proclamation No. 455/2005, article 10, and number 1-3. To implement compensation payments for the PAPs, projects may initiate the establishment of more than one property valuation committee for each Woreda. The compensation estimate and amount is and will be calculated by EEP Project Office and EHS&Q Social and Environmental Experts in concert with the property valuation committees. The payment is and will be effected by the Project office.

The ARAP survey revealed that six male and two female headed, totally 8, households comprising 11 male and 9 female entirely 20 individual PAPs and assets including six houses, one shop and four big Eucalyptus trees will be affected by the project in two different locations. Four of the affected houses and one shop are found in 14 Kebele around Chureber and two houses and four big Eucalyptus trees in Bokushenen Keble at the backside of condominium.

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All houses and shop are covered with corrugated iron sheets /CIS/. And the percentage of lose all the affected properties with in the right of way is ≤6% as indicated table 4.2.

The socio-economic survey revealed that all of the houses and shop will be relocated outside the five-meter safety corridor in the project sites. All of the affected houses and shop can be accommodated within their own area but outside the restricted safety corridor. Four Eucalyptus trees will be affected mainly due to concrete pole foundation civil works and line stringing.

Therefore, it is anticipated that PAPs will not move to other areas, they will only require relocating their houses and shop in their own holdings. There will be no change of PAP’s living condition in terms of distance to work places and schools for their children. PAPs will be compensated for the damage of their houses and shop. The amount of compensation for houses and shop will be determined on the basis of the current cost per square meter for constructing a comparable building.

In the project area, the one species that will be cleared for line stringing and concrete pole foundation civil works in the 5 meter safety corridor is Eucalyptus trees. Survey results indicated that a total of 4 big size eucalyptus trees will be affected due to line stringing and concrete pole foundation civil works.

During the field assessment, information dissemination and public consultations meetings were conducted with the affected communities, stakeholders, municipalities and local Administration Officials. Organizations that were consulted include: Bokushenen Kebele Administration, 14Kebele Administration, Environmental Protection Sector Offices, and Agricultural and Rural Development Offices. The assessment team has discussed the positive and negative impacts of the Distribution Rehabilitation and Upgrading Project with the Project Affected People (PAPs) and with local administration officials. Generally, communities’ attitude towards the project is positive and local officials have expressed their willingness to support the Project in every necessary way. Participants of the meetings agreed on the general principles of compensation payments and requested reasonable, sufficient and timely compensation payments for their lost assets.

Regarding the stipulated assistance for PAPs, as the project is limited to relocation of houses and shop in their own premises, PAPs who will relocate their houses and shop will be paid for their buildings. The amount of compensation for a building shall be determined on the basis of the current price per square meter in their respective city administration.

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The Distribution Rehabilitation and Upgrading Project Office and local government administrations (City Administration and Kebele Authorities) will be responsible for the execution of the compensation payment operations. On this basis, the Project Office should assign a team, responsible for the effective and efficient implementation of the compensation estimated as per the valuation methods/techniques employed. EEP will allocate budget for the implementation of compensation payment for the expropriated property to be implemented by the Distribution Rehabilitation and Upgrading Project. Once the budget is approved and transferred to the project account, the implementation will be undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimate of property is done by Property Valuation Committees, established in accordance with article 10 of Proclamation No. 455/2005. The Finance Division is responsible for processing the estimated fund and finally the compensation payment will be disbursed through the Project office.

The total estimated cost for affected houses and shop is Birr 96,700.98 (USD 4,305.47) On the other hand; compensation cost estimate for Eucalyptus Trees is Birr 2000.00 (USD 89.04). The total compensation cost of the ARAP implementation, including internal monitoring cost, Grievance redness, formation and orientation of the committee, log books and contingency is about Birr 196,571.07(USD 8,752.05).

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

1. INTRODUCTION

Over the past few years, Ethiopia has registered remarkable growth in the construction of electric power plants with the view to address the ever increasing demand as result of higher than anticipated economic improvement and renewed interest in a form of power generation. In addition to the contribution for sustainable development, the sector creates ample job opportunities nationwide. Ethiopian Electric Power, under its Electricity Network Reinforcement and Expansion project, has received funds from the World Bank to finance the construction of urban distribution network rehabilitation and upgrading in Addis Ababa and seven other regional towns namely Adama, Hawassa, Jimma, Mekelle, Dessie, Bahir Dar and Dire Dawa.

From November 15 to November 20, 2016 a team of Sociologists and Environmentalists of EEP has conducted a Socio-economic survey and asset inventory of the sub-project.

The team visited the Distribution Rehabilitation and Upgrading Project of medium voltage line in Adama, and identified the Project Affected areas, conducted socio economic survey, and made consultation with city administration, Kebeles officials and Project Affected Persons (PAPs).

Most of the distribution rehabilitation and upgrading works are carried out along the existing road corridor and no major impacts are observed in the center of the city. But minimal Social and Environmental impacts occurred around Chureber 14 Keble and at the backside of condominium in Bokushenen Keble.

Efforts have been made to minimize negative impacts through subsequent re-routing distribution rehabilitation and upgrading of MV lines that passes not to have a significant impact on environmentally sensitive areas like historical or archaeological, forest, churches, schools, endangered species, wetland, graveyards, national park, protected areas and others. However, there are minimal environmental and social impacts that are indicated below.

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

The socio-economic survey revealed that, six male and 2 female, totally 8 households comprising 11 males and 9 females entirely 20 individual PAPs and assets including six houses, one shop and four big Eucalyptus trees will be affected by the project in two different locations. And these assets will be relocated outside the five-meter safety corridor in Adama City distribution rehabilitation and upgrading project sites. And the percentage of loss of all the affected properties with in the right of way is ≤4% as indicated table 4.2.

All of the affected houses and shop will be accommodated within their own area but outside the restricted safety corridor. Four big Eucalyptus trees will be affected mainly due to line stringing and concrete pole foundation and erection civil works which will be cleared from the safety corridor.

1.1. Objective of the ARAP

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including the Operational Policy 4.12, Involuntary Resettlement in respect to minimizing impacts, consulting those likely to be affected and planning to assist those to be displaced in restoring their livelihood. The ARAP mainly prepared to minimize social and environmental disruptions and resettlement of people as a result of the construction of distribution rehabilitation and upgrading of Medium voltage line. The aim is to ensure that those who will be affected by the project are adequately compensated for their losses and/or that their incomes are restored or improved in compliance with the national Laws and World Bank safeguard polices.

2. KEY COMPONENTS OF THE PROJECTAND BIOPHYSICAL PROFILE

2.1. Description of the Project

The Project components under the Electricity Network Reinforcement and Expansion project have the potential to provide significant social and environmental benefits. However, there are risks of adverse environmental and social impacts. As rule of thumb, at all levels, all projects and sub project implemented under EEP should adhere to acceptable environmental and social safeguards for sustainable and green economy of the country. The projects should, as far as possible, not result in involuntary resettlement and land acquisition and where this is necessary,

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minimizing by exploring all viable alternative options/measures.

The main activities of the Distribution Rehabilitation and Upgrading works include:

Table 1-1Consolidated Medium Volt Works in Adama Town. ITEM OF MV WORK QTY NEW OHL 200 mm2 insulated conductors 53.2 150 mm2 insulated conductors 34.5 300 mm2 Copper cable 5.5 240 mm + A1 Cable 0 LINE EQUIPMENT Feeder RTU1 + 5 8 Switched shunt capacitor 22 Automatic voltage boosters 1 Auto reclosers’ 0 Automatic line sectionalisers 1 Switches(AB Switches or section switches) 60 Source: - Contract agreement Volume 2, p. 41, 21 Jan 14

The Purpose of the Project is to:

 Enhance reliable power supply,  Reduction of voltage drop and power loss,  Supply of electricity to new customers, and  Enhance aesthetics of the cities (by replacing old wooden poles with new concrete poles and installation of underground cable)

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The concrete poles to be used are typically about 9-14 meters high. This type of transmission normally follows the existing road corridor for bends and a curve where it is more economical to make shortcut if that is technically feasible.

Casual labor will be recruited from the construction area thus providing employment opportunity to the local communities. No camp or other temporary facilities are required.

The length of MV covers underground cable lines 5.5 km and 87.7 km overhead lines totally 93.2km and goes across mainly Bokushenen and other Kebeles of Adama town. The project major activities that lead to houses and shop to be relocated and eucalyptus trees to be cleared outside the safety corridor is mainly concrete pole foundation civil works and line stringing.

The distribution rehabilitation and upgrading works generally follow the existing road corridor and there are minimal social and environmental impacts in the project area. Measures are taken to minimize impacts by re-routing the line but in some cases impacts are unavoidable. There is no other way but to clear trees that are found inside the 5-meter safety corridor. The major objective for the safety corridor is protection of persons from risk and property damage during construction and operational phases.

2.2. Physical Environment of the MV Lines right of way

The corridor of the MV line connecting to the Proposed Substation with inner city passes through the existing road corridor and new proposed roads. There are no environmentally sensitive areas like historical or archaeological, forest, churches, schools, endangered species, wetland, graveyards, national park, protected areas and others in the right of way recognized by any organization except already mentioned houses, shop and trees and the existing road corridors lined with trees so trimming of trees will be necessary in some cases to ensure achievement of standard safety clearance for distribution and rehabilitation of MV lines.

2.3. Physical Environment of the project Town

Adama City is located at some 100 kilometers from Finfinne, on the southeast along the main road to Harar. Its grid references point that the City stretches between 80 33' to 80 36' North latitude and 390 11' 57" to 390 21' 15" East longitude. Adama lies in somewhat warm and lower Woyenadega climate. Hence, it enjoys hot and dry weather for the greater part of the winter and warm and sunny climate in summer. Thus, the area is generally, known for its attractive weekends and summer resort release. References to its temperature Adama has a minimum

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annual temperature falling between 190 and 220C. Its yearly minimum rainfall is reported to be 760 mm and its humidity record based on 39 years period (i.e., 1953-1991), points that, the mean annual precipitation of the City was 822mm.

Adama is situated within the Wonji Fault Belt, in the main structural systems of the Ethiopian Rift Valley. Geological studies indicate that the present physiographic characteristics of the area is the result of volcano-tectonic activities occurred in the past and thus deposition of sediment largely of fluvial and lacustraine origin. Therefore, the main landscape in Adama and its surrounding consists of fault scraps and fault controlled depressions covered with sediments and volcanic domes and cones. The study further points out that the major proportion of the City lies in a relatively low lying flat land (within 1 to 10% slope) between two mountain ridges, at an average altitude ranging between 1600 and 1800 meters above sea level (masl). The nature of the soil resources depends upon type of landforms, parent material, altitude, climate, geology and topography of the area. As Adama is situated within main Ethiopian Rift Valley, where by its present physiographic characteristics is the result of volcano-tectonic activities occurred in the past and thus deposition of sediment largely of fluvial and lacustraine origin accompanied with steep slopes and escarpments surrounding the town, the natural environment particularly with regard to soil of Adama town is under extreme threat due to the interaction of several natural and manmade factors. The prevalent soil types of Adama include: Cambisols, EutricCambisols, CalcaricCambisols, EutricVertisols, Fluvisols, CalcaricFluvisols, Regosols, Lepto soils and Arenesols.

2.4. Biological Environment

2.4.1. Vegetation cover

Except some bushes found on the southern part of the city, it is hardly possible to find trees either on the chain of the hills surrounding the town or in the town itself. The shortage of fuel wood is acute in the town. Ethiopia has issued a number of regulations aimed to conserve and protect the remaining natural ecosystems of the country in National Parks, Wildlife Sanctuaries, and Controlled Hunting Areas. However, the project area is neither contiguous with nor in close proximity with any of these nationally protected areas.

2.4.2. Wildlife

As aforementioned except some bushes found on the southern part of the city, it is hardly

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possible to find trees either on the chain of the hills surrounding the town or in the town itself hence, since there is no forest cover that suit for wild life habitat, one cannot expect much wild life species in Adama town and its environs. As learned from the field investigation, and sporadic discussions held with randomly met local community members including elders, revealed that the wild life species that are common in many parts of the country like spotted hyenas, hare, Fox, duiker, warthog, jackal, baboons, Dikes etc. are to some extent seen in the area. In addition none of the 76 nationally designated important birds are found in the project area. 2.5. Social Environment

2.5.1. Demographic Features

The city rose to the status of capital city in different times such as for East Shoa Zone, Oromia Regional State and now is a Special Zone. The changes in status brought about the increase in residents from about 100,000 in 1990 to about 213,995 in 2014. Adama city is divided in to 14 Kebeles and 4 nearby rural Kebeles.

2.5.2. Social Service

The overall settlement, the construction of basic infrastructures and other urban services as of all towns in Ethiopia were not well planned in Adama town. Consequently, the human settlement type is mixed, with no special zoning system for, commercial, business, industrial, residential and other types of socio-economic activities. Most infrastructures like; houses, roads, drains and toilets, were built out of standard plans and without observing minimum health, safety and environmental requirements. This sub section explains status of some of the key basic service need due attention in relation with the captioned project.

2.5.3. Economy

The economic, social and spatial growth of Adama town is related to its proximity to the capital Addis Ababa and the road networks. Particularly the recently inaugurated express way and the existing highway cross the city and connect the central region of the country with its south and east. The major economic sectors creating ample employment opportunities for the dwellers of Adama include: Commerce and transport, Manufacturing and construction, Agriculture, and Administration, finance, education, health, security and social, cultural, recreation and others. There are manufacturing firms, like tractor factory, edible oil factory, plastic factory, etc. in addition there are some agricultural activities mainly in the northern and southern parts of the

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city where by quarantines and Cattle feedlots are found. Horticultural development is also taking place along the road to Wonji.

2.5.4 Unemployment

The total unemployment rate for Adama is much higher than the national average. This project is expected to render job opportunity for a certain proportion of unemployed persons of the town. Hence, according to the estimated data obtained from contract document this project during its pick execution period can provide job opportunity for 300 to 450 day causal workers and 70 to 100 professionals at different levels. Diversifications of income generating activities among local communities also arise due to better access to energy and it could increase revenue of the locals because they could gain additional income from the project workforce by providing services like as food, beverage, drinks which play vital role in stimulating their economic capacity for short period of time.

2.5.5. Prevalent Diseases

According to the morbidity statistics recorded by health centers and hospitals found in Adama City, the leading public health issue in the town is malaria. Other prevalent diseases in the order of their dominance include upper respiratory tract infections, eye diseases, intestinal parasites, skin infections and Genito-urinary system diseases.

2.5.6. Sanitation and Waste Disposal Management

In Adama, rapid urbanization coupled with increased urban population in the last decade brought immense pressure on municipal services, mainly in the management of the ever increasing amounts of solid waste. During site observation, it was found that some households and organizations are more than 2kms far from nearby solid waste containers and some Kebeles do not have containers at all. As a result, according to its 2014 report, the city administration currently collects and disposes 52% of the waste generated daily in the city. As a consequence, the waste generated from different sources which is not collected by the city administration is disposed of in low-lying areas, in the outskirts of the city, in drainage lines, in vacant spaces, and alongside roads, or is informally burned. Moreover, landfill sites for both solid and liquid wastes are not scientifically designed leading to air, water and soil pollution. The ditches are filled with solid wastes disposed by inhabitants causing flood in the city, and refuse often blocks drainage channels causing pounds often polluted with organic waste because of which domestic

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flies and mosquitoes are breeding. In general, the current solid waste management practice in Adama couldn’t cope with the fast urbanizing needs of the city.

2.6. Archeological, Cultural Heritage and Religious Sites

The natural endowments of the region as hot springs like Sodere are good attractions of tourist. This makes Nazareth a transit town entertaining large number of (nonresident) visitors every day. This in turn switches the demand for extended commercial services such as hotels, bars, restaurants and alike. In addition, there are numerous religious, cultural and heritages of glorious attractions in Adama and its environs. But upon visiting the areas of the proposed lines the team did learn, Neither the MV lines nor the Transformers sites are transverse in an area of archaeological, Historical or cultural importance according to the local officials and experts. Because there is no apparent visible evidence of any remains disturbed, that could indicate the presence of important archaeological remains that means the risk value of the project is insignificant.

2.7. Infrastructures

In terms of road network, Adama is connected with Addis Ababa by Addis Abeba –Diredawa road and recently constructed Express way road, which is about 100km long. There are also several roads radiating from Adama and linking all the districts of the Adama Zone. In addition, Adama is connected to all the major towns and administrative regions in the west, southwest, east and southern parts of Ethiopia through major link roads. The major roads include the Adama -Wengy, Adama-Diredawa, Adama–Addis Abeba Highway roads. With regard to transportation, transportation and communication facilities have a significant role to the development of the town as they facilitate efficient production, exchange and distribution of goods and services as well as information and people to and from the Administration. Adama town is served by all modes of transportation and communication except for water transport.

Nazareth gets electric power supply from the national grid. The source of the electric power is from hydro power. By assuming that each household in the city gets electricity directly or indirectly, access/ coverage to electricity is 100% and the number of customers as of July 7/2009 ( 30th Sene, 2001 Eth. Cal.) is 23,751.

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3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION

3.1. Expropriation Law

The Federal Democratic Republic of Ethiopia by signing the credit agreements for the Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed itself to abide by the World Bank policy on involuntary resettlement. Thus, the legal framework of the Project is based on the Constitution of FDRE as transcended into EEP’s procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

According to the Constitution of the Federal Democratic Republic of Ethiopia (FDRE), land is a public property and cannot be subject to sale or to other means of exchange. In other words, alienating land by sale, mortgage or any form of transfer with respect to land is prohibited. Ownership of land is vested on the State while citizens have only usufruct rights over land.

The right regarding the latter may be considered “private property” and any interference of the usufruct right, such as expropriation, shall entail compensation. A usufruct right gives the user of the land the right to use the land and the right to benefit from the fruits of her/his labor. This may include crops, trees, etc. found on the land or any permanent works (such as buildings, etc.).

This is clearly provided in Article 40.7;

“Every Ethiopian shall have the full right to the immovable property he builds and to the permanent improvements he brings about on the land by his labour or capital.”

The FDRE Constitution further states, among other things, that the owner of such rights is entitled to compensation and that the particulars shall be determined by law. Article 40.8 in turn strengthens this by stating that private property may be compensated if expropriated by the government for public purposes.

The expropriation of land holdings set out in the FDRE Constitution and in the proclamation 455/2005 is mostly in agreement and in line with World Bank policies (OP and BP 4.12).

3.2. Compensation Law

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable resettlement strategy, offering adequate compensation and incentives for loss of land and other

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sources of livelihood (e.g., loss of income, crop, trees, housing and other structures) and for investments made on land by PAP’s in accordance with the law.

The Constitution of the Federal Democratic Republic of Ethiopia (FDRE) has several provisions which have direct policy, legal and institutional relevance for the appropriate implementation of the resettlement/rehabilitation plans prepared by development projects and program.

Article 44 No.2 of FDRE Constitution states that:

“All persons who have been displaced or whose livelihoods have been adversely affected as a result of state programs have the right to commensurate monetary or alternative means of compensation, including relocation with adequate state assistance.”

The Constitution also guarantees people whose livelihood is land based and pastoralists the right to have access to land as well as protection against eviction from their possession (Article 40.4 and 40.5).

Article 40.8 also states that;

“Without prejudice to the right to private property, the government may expropriate private property for public purposes subject to payment in advance of compensation commensurate to the value of property.”

In July 2005, the Government of Ethiopia has issued a proclamation, “Proclamation to provide for the expropriation of land holdings for public purposes and payment of compensation”, Proclamation No. 455/2005. This proclamation has several articles on the determination of compensation, compensation for displacement, valuation procedures, establishing property valuation committees and on complaints and appeals. The proclamation gives power to Woreda and urban administrations to expropriate and use land for public services.

Part two, article 3, No.1 of the Proclamation No. 455/2005 states that:

“A Woreda or an urban administration shall, upon payment in advance of compensation in accordance with this proclamation, have the power to expropriate rural or urban landholdings for public purpose where it believes that it should be used for a better development project to be carried out by public entities, private investors,

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cooperative societies or other organs, or where such expropriation has been decided by the appropriate higher regional or federal government organ for the same purpose.”

Proclamation No. 455/2005 also provides displacement compensation for rural land holdings. Part three of article 8 states that:

“A rural landholder whose land holding has been permanently expropriated shall, in addition to the compensation payable under article 7 of this proclamation, be paid displacement compensation which shall be equivalent to ten times the average annual income he secured during the five years preceding the expropriation of the land.”

The proclamation also states that in urban areas, PAPs will be provided with a plot of land (land for land compensation) for their expropriated land to be used for the construction of house and also be paid compensation for displacement.

3.3. Grievance Redress Mechanism

Grievances are first preferred to be settled amicably whenever possible. That is, positive discussions are made to convince the affected PAP in the presence of elders, local administration (municipalities, Woreda and Kebele administration) representatives or any influential person/s in the locality to first handle the grievance. In the event of continued non- satisfaction by the PAPs, the grievance will be forwarded to the appropriate administrative executive for consideration which may transfer it to court of law if unsolved.

According to Proclamation N0.455/2005, Article 11, sub article 1:

“In rural areas and in urban centers where an administrative organ to hear grievances related to urban landholding is not yet established, a complaint relating to the amount of compensation shall be submitted to the regular court having jurisdiction.”

In urban areas, a PAP who is dissatisfied with the amount of compensation may complain to an administrative organ and if the PAP is still not satisfied, may appeal to the regular appellate court or municipal appellate court within thirty days from the date of the decision. PAPs are required to channel their grievances to the Local committee verbally, or through telephone calls, and letters.

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3.4. EEP Strategy for Expropriation and Compensation

It is the objective of EEP to avoid or reduce to a minimum level, the detrimental environmental and social impacts and effects of the project operations, on the livelihood of those people to be served by the project components. However, if adverse social impacts induced by project operations are inevitable, EEP’s Resettlement/Rehabilitation Policy Framework /RPF/ stresses that PAPs should be consulted and compensated for loss of their properties and other inconveniences.

To implement compensation payments for the PAPs, projects may initiate the establishment of ARAP implementation committee for each Woreda.

The compensation estimate and amount is and will be calculated by EEP Project Office and EHS&Q Social and Environmental Experts in concert with the property valuation committees. The payment is and will be effected by the Project office.

3.5. World Bank Operational Policies and Procedures for Involuntary Resettlement (OP 4.12 and BP 4.12)

World Bank Operational Policy (OP 4.12) and Bank’s Procedures (BP 4.12) on involuntary resettlement serve as operational guidelines for WB-financed projects.

The World Bank, in its Operational Policy (OP 4.12) states the overall policy objectives of involuntary resettlement as follows:

a. Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs.

b. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project

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benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

c. Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

3.6. Comparisons of the National Polices and the World Bank OP 4.12

There are a number of differences and gaps between the national policies and legislation and the World Bank Policy OP 4.12. These gaps relate to the general principles for resettlement, eligibility criteria, the notification period for expropriation and resettlement, as well as the procedures required throughout the resettlement process. In case of conflicts between the FDRE law and Bank Policy, Bank policy will prevail.

The following table is presented to summarize the comparison of the Ethiopian Legislation and World Bank’s Operational Policy, and portrays recommendations to address the identified gaps.

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Table 3-1Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps Theme WB OP/BP4.12 Ethiopian Law Comparison Recommendation to address gap

Policy OP4.12 requires that involuntary resettlement The Constitution of Ethiopia and Avoidance or minimization of World Bank OP 4.12 overall objectives Objectives should be avoided wherever possible or Proclamation No 455/2005 give power to involuntary resettlement is not specified shall be applied to avoid or minimize minimized by exploring alternatives. Woreda or urban administrations to in the Ethiopian legislation. involuntary resettlement and to ensure Resettlement program should be sustainable, expropriate rural or urban landholdings for Proclamation No 455/2005 allows for a consultation throughout the process. include meaningful consultation with affected public purpose where it believes that it complaints and grievance process. parties and provide benefits to affected parties should be used for a better development Proclamation No 455/2005 allows for Displaced persons should be assisted in Article 7(5) states that the cost of removal, some form of support to the displaced improving livelihoods etc. or at least restoring transportation and erection shall be paid as persons, but does not explicitly specify them to previous levels compensation for a property targeted for consultation with affected persons the project. through the process.

Notification Article 10 of OP4.12 requires that the Article 4 of Proclamation No 455/2005 There is a gap in Proclamation OP4.12 should be applied to ensure period /timing resettlement activities associated with requires notification in writing, with details No 455/2005 to allow land to be displaced person compensated and of implementation of the development project to iming and compensation, which cannot be expropriated before necessary measures supported prior to handover of land to displacement ensure displacement or restriction of access does less than 90 days from notification. It for resettlement take place, particularly the development. not occur before necessary measures for requires that land should be handed over before the displaced person has been resettlement are in place. In particular, taking of within 90 days of payment of compensation paid. This can have serious land and related assets may take place only after payments. If there is no crop or other consequences for those affected, as they compensation has been paid and where property on the land, it must be handed over may be displaced without shelter or any applicable, resettlement sites and moving within 30 days of notice of expropriation. It means of livelihood. allowances have been provided to displaced further gives power to seize the land persons. through police force should the landholder be unwilling to hand over the land

Eligibility for OP4.12 gives eligibility to all PAPs whether they Proclamation No 455/2005, Article 7(1) While Ethiopian law only grants ENREP RPF document acknowledges Compensation have formal legal rights or do not have formal allows’ landholders’ to be eligible for compensation to those with lawful in an event where there is a conflict legal rights to land, but have a claim to such land compensation if they have lawful possession of the land, OP4.12 entitles between the national law and WB and those who do not have recognizable legal possession over the land to be expropriated compensation to all affected individuals OP/BP4.12 guidelines, the WB policy right or claim to the land. and owns property situated thereon” regardless of landholding rights to land prevails as resettlement framework. titles (including squatter settlements)

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Theme WB OP/BP4.12 Ethiopian Law Comparison Recommendation to address gap

Compensation World Bank OP4.12 Article 6(a) requires that Article 7 of Proclamation No. 455/2005 The World Bank requirement for The World Bank requirements for displaced persons be provided with prompt and entitles the landholder to compensation for compensation and valuation of assets is compensation must be followed, as per effective compensation at full replacement cost the property on the land on the basis of that compensation and relocation must OP4.12 footnote 1, which states, for losses of assets attributable directly to the replacement cost; and permanent result in the affected person securing “Where domestic law does not meet project. If physical relocation is an impact, improvements to the land, equal to the property and a livelihood to at least the standard of compensation at full displaced persons must be provided with value of capital and labor expended. equivalent standards as before. This is replacement cost, compensation under assistance during relocation and residential not clearly stated in local Proclamations. domestic law is supplemented by housing, housing sites and /or agricultural sites Where property is on urban land, It is expected that the regulations and additional measures necessary to meet to at least equivalent standards as the previous compensation may not be less than directives will provide more clarity and the replacement cost standard” site. Replacement cost does not take depreciation constructing a single room low cost house clearer guidance in this regard. into account. In term of valuing assets. If the as per the region in which it is located. It residual of the asset being taken is not also requires that the cost of removal, economically viable, transportation and erection will be paid as compensation for a relocated property continuing its service as before. Valuation formula are provided in Regulation No. 135/2007 Responsibiliti According to OP4.12, Article 14 and 18, the Article 5 of Proclamation No 455/2005 The process required for the project As per the World Bank requirements, es of the borrower is responsible for conducting a census sets out the responsibilities of the proponent / implementing agency lacks project processes included screening, a project and preparing, implementing, and monitoring implementing agency, requiring them to descriptive processes in local census, and the development of a plan, proponent the appropriate resettlement instrument. Article gather data on the land needed and works, legislation. management of compensation 24 states that the borrower is also responsible for and to send this to the appropriate officials payments and monitoring and adequate monitoring and evaluation of the for permission. It also requires them to pay evaluation of success. It must also activities set forth in the resettlement instrument. compensation to affected landholders include proper consultation with the In addition, upon completion of the project, the affected parties throughout the process. borrower must undertake an assessment to determine whether the objectives of the resettlement instrument have been achieved. This must all be done according to the requirements of OP4.12. Article 19 requires that the borrower inform potentially displaced persons at an early stage about the resettlement aspects of the project and takes their views into account in project design.

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4. CENSUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE

The purpose of the baseline household survey was to establish a social inventory of local inhabitants occupying and operating livelihood activities on the ROW of clearance of the line stringing and concrete pole foundation civil works in the 5 meter safety corridor. The survey utilizes collection of vital and relevant information of individual PAPs and households that are likely to be affected by the project activities. The baseline survey was carried out from November 15 to November 20, 2016.

4.1. Summary of PAPs Asset Inventory

The household baseline survey revealed that, six male and two female totally 8 households comprising 11 male and 9 female entirely 20 individual PAPs residing in Bokushenen and Kebele 14 within the project Right of Way clearance areas. In addition, six houses, one shop and four big eucalyptus trees were identified as the affected property with in the right of way in Bokushenen and kebele 14for the purpose of implementing the project on board.

4.2. Details of the Impacts Caused by Displacement

4.2.1. Impact on Property

The socio-economic survey revealed that about six houses and one shop will be relocated outside the five meter safety corridor in the project sites. And only require relocating of houses and shop in their own holdings. Four big Eucalyptus trees will be affected mainly due to concrete pole foundation civil works and line stringing.

The percentage of lose all the affected properties with in the right of way is ≤6% as indicated table 4.2.Due to this all of the affected houses and shop can be accommodated within their own area but outside the restricted safety corridor. All affected houses and shop are found in two different locations. Two of the affected houses are in Bokushenen kebele at the back side of condominium and four houses and 1shop ae located around Chureber in 14 Keble. All houses and shop are covered with corrugated iron sheets /CIS/. The tree species that will be affected found in Bokushenen Keble as a result of line stringing and concrete pole foundation civil works in the 5 meter safety corridor are four big Eucalyptus trees.

4.2.2. Impacts on houses and Shop

All of the affected houses and shop can be accommodated within their own area but outside the

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restricted safety clearance. Therefore, it is anticipated that PAPs will not move to other areas, they will only require relocating their houses and shop in their own holdings/ premises. There will be no change of PAP’s living condition in terms of distance to work places and schools for their children.

PAPs will be compensated for the damage of their houses and shop. The amount of compensation for houses and shop will be determined on the basis of the current cost per square meter for constructing a comparable building. The location of the affected shops is in Bokushenen Kebele, at the backside of condominium and 14 Kebele. The following table summarizes all relevant data for affected houses and shop in Bokushenen and 14Kebeles of Adama town.

Table 4-1Affected houses and Shop. No. Household Affected House Uses of Employment Location Remark head name/ house and in m² houses Status of all Owner shop type /Appro adults ximate / Bokushe Around the 1 Tamirat Mengesha 1 CIS* 12 House Merchant nen backside of condominium 2 Tilahun Esubalew 1 CIS 12 Houses Daily laborer >> >>

3 Wubitu Bine 1 CIS 12 House Merchant 13 Around Chureber

4 Mamo Dbe 1CIS 9 houses Farmer >> >>

5 Aleminesh Wude 1CIS 9 Shop Merchant >> >>

6 Wubeshet Delnew 1CIS 12 House Merchant >> >>

7 Girma Gima 1CIS 12 House Merchant >> >>

Source: Socio-economic Survey, November 2016.

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Table 4-2. Percentage of lose.

No Household Total Area in Affected land Percentage of . head name/ Owner ha in ha loss

1 Tamirat Mengesha 0.04 0.0012 3 2 TilahunEsubalew 0.0225 0.0009 4

3 Wubitu Bine 0.02 0.0012 6

4 Mamo Dbe 0.02 0.0009 4.5

5 Aleminesh Wude 0.02 0.0009 4.5

6 Wubeshet Delnew 0.02 0.0012 6

7 Girma Gima 0.04 0.0012 3

Average 4.43

Source: Socio-economic Survey, November 2016.

4.2.3. Impacts on Eucalyptus Trees

In the project area, the one species that will be affected as a result of line stringing and concrete pole foundation civil works in the 5 meter safety corridor is eucalyptus trees.

Survey results indicated that a total of 4 big size eucalyptus trees will be affected due to line stringing and concrete pole foundation civil works.

Affected Eucalyptus Trees

Table 4-3Affected Eucalyptus Trees Types and Number of Affected Trees Location No. Owner Eucalyptus ‘Quami’ (Big) 1 Mehamed Usman Bokushenenkebele 4 around at the back side of condominium

Source: Socio economic survey, November 2016

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4.2.4. Socio-economic Characteristics of Families

The household baseline survey depicts a total of eight households, six male and two female headed households to be affected by the project. Theses households uphold a total of twenty family members residing in Bkushenen and 14 kebele within the project Right of Way clearance areas. Details of the socioeconomic characteristics of the PAPs are presented in the following table 4-4.

Table 4-2Socio-economic Characteristics of Families

Name of No. of No. of children No. of No. of Sources of No. household head persons in < 13 years of adults Studen income household age + 60 years ts of age M F

1 1 1 Tmirat Mengesha - - Trade 2 Tilahun Esubalew 2 1 1 - - Daily laborer 3 Wubitu Bine 1 1 1 1 1 Trade 4 Mamo Dbe 1 1 1 Agriculture 5 Aleminesh Wude - 2 Trade 6 Wubeshet 2 1 >> Delnew 7 Mehamed Usman 3 1 1 1 >> 8 Girma Jima 1 1 >>

Source: Socio economic survey, November 2016

5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS

5.1. Eligibility for Entitlement

The resettlement and rehabilitation are recognized as civil rights in the Ethiopian legislation (Art. 44 No.2 of the Constitution of the FDRE), PAPs should be consulted and compensated for the loss of their properties due to Government or public induced projects. Moreover, the FDRE committed itself to abide the WB Operational Safeguard Policy on Involuntary Resettlement. Thus, EEP shall adopt the WB`s Policy for resettlement/rehabilitation for the fact that the eligibility criteria set by the WB`s basically comply with the Ethiopian national legal requirements.

The GOE and the World Bank Resettlement Guidelines require all individuals and households whose assets and productive resources affected as a result of the stringing project are entitled

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for compensation and/or other forms of assistance. Pursuant to the policy frameworks, eligible PAPs for entitlement under this project include households with formally recognized property rights and those who have held land under informal purchase agreements and arrangements.

5.2. Eligibility Criteria

Concerning the lost assets the World Bank has stressed that households that have only partially lost their assets but are no longer economically viable should be entitled to full compensation/resettlement. Moreover, the following criteria for eligibility for the displaced persons are adopted for the ARAP preparation:

. Those who have formal legal right to land (including customary and traditional rights recognized by the law of the Country). . Those who do not have formal legal rights to land at the time the census begins but have a claim to such lands or assets, provided that such claims are recognized under the laws of the Country or become recognized through a process identified in the resettlement plan. . Those who have no recognizable legal right or claim to the land they are occupying.

5.3. Entitlement Matrix

This ARAP is based on the National and World Bank`s Policy Framework and other relevant laws and practices of the Government of Ethiopia. The resettlement entitlement matrix shown in Table 4-5 is based on these legal, administrative and policy frameworks and recognizes different types of losses associated with dislocation and resettlement. These include the loss of house, and crop and other agricultural properties. Type and size of affected asset qualified for entitlement and mechanisms for other forms of assistance are presented below in matrix format.

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Table 4-1 Entitlement Matrix Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits Agricultural land Cash compensation for affected land usage title holder Cash compensation for affected land equivalent to replacement value, taking into equivalent to market value compensation rates as per government regulation. Less than 20% of land holding affected Land remains economically viable.

Tenant/ lease holder Cash compensation for the harvest or product from the affected land or asset, equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land.

Greater than 20% of land holding lost Farmer/ Title holder Land for land replacement where feasible, or compensation in cash for the entire Land does not become economically landholding according to PAP’s choice, taking into account market values for the land, viable. where available Land for land replacement will be in terms of a new parcel of land of equivalent size and productivity with a secure tenure status at an available location which is acceptable to PAPs. Transfer of the land to PAPs shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature )

Tenant/Lease holder Cash compensation equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature

Commercial land Land used for business partially affected Title holder/ business owner Cash compensation for affected land, taking into account market values for the land, where available. Limited loss Opportunity cost compensation equivalent to 5% of net annual income based on tax records for previous year (or tax records from comparable business, or estimates where such records do not exist). Business owner is lease Opportunity cost compensation equivalent to 10% of net annual income based on tax holder records for previous year (or tax records from comparable business, or estimates where such records do not exist).

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits Assets used for business severely Title holder/business owner Land for land replacement or compensation in cash according to PAP’s choice; cash affected compensation to take into account market values for the land, where available. Land for land replacement will be provided in terms of a new parcel of land of equivalent size and market If partially affected, the remaining assets potential with a secured tenure status at an available location which is acceptable to the become insufficient for business PAP. purposes. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance) Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates) Business person is lease Opportunity cost compensation equivalent to 2 months net income based on tax records for holder previous year (or tax records from comparable business, or estimates), or the relocation allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance in rental/ lease of alternative land/ property (for a maximum of 6 months) to reestablish the business. Residential land Land used for residence partially Title holder Cash compensation for affected land, taking into account market values for the land, where affected, limited loss available. Remaining land viable for present use.

Rental/lease holder Cash compensation equivalent to 10% of lease/ rental fee for the remaining period of rental/ lease agreement (written or verbal) Title holder Land for land replacement or compensation in cash according to PAP’s choice; cash compensation to take into account market values for the land. Land for land replacement shall be of minimum plot of acceptable size under the zoning law/s or a plot of equivalent size, whichever is larger, in either the community or a nearby resettlement area with adequate physical and social infrastructure systems as well as secured tenure status. When the affected holding is larger than the relocation plot, cash compensation to cover the difference in value. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance) Land and assets used for residence Rental/lease holder Refund of any lease/rental fees paid for time/use after date of removal severely affected Cash compensation equivalent to 3 months of lease/ rental fee Remaining area insufficient for continued Assistance in rental/ lease of alternative land/ property use or becomes smaller than minimally Relocation assistance (costs of shifting + allowance)

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits accepted under zoning laws Structures are partially affected Owner Cash compensation for affected building and other fixed assets taking into account market values for structures and materials. Remaining structures viable for Buildings and structures continued use Cash assistance to cover costs of restoration of the remaining structure Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant), taking into account market values for materials. Disturbance compensation equivalent to two months rental costs Entire structures are affected or partially Owner Cash compensation taking into account market rates for structure and materials for entire affected structure and other fixed assets without depreciation, or alternative structure of equal or better size and quality in an available location which is acceptable to the PAP. Remaining structures not suitable for Right to salvage materials without deduction from compensation continued use Relocation assistance (costs of shifting + allowance) Rehabilitation assistance if required (assistance with job placement, skills training) Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant) Relocation assistance (costs of shifting + allowance equivalent to four months rental costs) Assistance to help find alternative rental arrangements Rehabilitation assistance if required (assistance with job placement, skills training) Squatter/informal dweller Cash compensation for affected structure without depreciation Right to salvage materials without deduction from compensation Relocation assistance (costs of shifting + assistance to find alternative secure accommodation preferably in the community of residence through involvement of the project Alternatively, assistance to find accommodation in rental housing or in a squatter settlement scheme, if available) Rehabilitation assistance if required assistance with job placement, skills training) Street vendor (informal Opportunity cost compensation equivalent to 2 months net income based on tax records for without title or lease to the previous year (or tax records from comparable business, or estimates), or the relocation stall or shop) allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance to obtain alternative site to reestablish the business. Standing crops Crops affected by land acquisition or PAP (whether owner, tenant, Cash compensation equivalent to ten times the average annual income s/he secured during temporary acquisition or easement or squatter) the five years preceding the expropriation of the land. Trees Trees lost Title holder Cash compensation based on type, age and productive value of affected trees plus 10%

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Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits premium Temporary acquisition Temporary acquisition PAP (whether owner, tenant, Cash compensation for any assets affected (e.g. boundary wall demolished, trees removed) or squatter) Loss of Livelihood Households living and/or working on the Rehabilitation Assistance Training assistance for those interested individuals for alternative income generating project area, including title holders/non- activities; providing employment opportunities on the construction site for the PAPs. title holders/daily laborers working in the market

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5.4. Valuation and Compensation for Loss and Resettlement Measures

The strategy adopted for compensation of the affected properties / assets follows the Federal Government and Regional Government laws and regulation as well as the project financier/WB’s requirements. The project affected populations even if they are not displaced from their current location, they will be made to live in economically unviable situations because of loss of land, crop, assets and housing structures. Hence, in such situations PAPs will be offered full resettlement package. infrastructures and services affected by the construction works of the project need to be replaced or restored to its original level or in an improved manner. The compensation procedures and approach in this ARAP will adopt the following five steps presented here below.

i. Establishment of Property valuation committees: Woreda level property valuation committee is established at project implementation Woredas based on Proclamation no 455/2005. The property valuation committees will provide PAPs with details of compensation estimates, measurement of all affected assets and properties that PAPs will be losing. The compensation estimate and valuation will be reviewed by the resettlement/compensation committee prior to effecting compensation payment. ii. Assessment of properties and assets: All properties and assets affected by the project will be assessed at a full replacement cost, which is based on the present value of replacement. iii. Establishing unit rates: Unit rates are established for each of the expropriated assets and properties by the project. The unit rate is established for each of the affected properties and assets expropriated due line stringing and concrete pole foundation and erection civil works on the basis of current market value. iv. Final review of unit rates, those properties and assets to be affected: Final review of those properties and assets to be affected will be undertaken by the valuation and compensation committees that are established at each Woreda/district level prior to the commencement of the construction works. The valuation committee, in close consultation with PAPs and the resettlement committee will review and establish a new unit rate for the affected assets to be determined on the basis of market value. v. Payment of Compensation to PAPs: Compensation payment to PAPs will be effected after the property valuation committee makes the final estimate of compensation payable for the affected properties at a full replacement cost. Payment to affected properties and

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assets will be effected before the commencement of the construction works. The payment procedures and mechanisms to be adopted will be simple and easily understandable to PAPs. Compensation payment also addresses the following four questions.  What to compensate for (e.g. land, structures, businesses, fixed improvements or temporary impacts, lost income);  How to compensate;  When to compensate; and  Amount to be compensated

Compensation for land structures, business, fixed improvements and other temporary impacts are based on among other things, on market valuation, production and productivity valuation, negotiated settlement, material land labor valuation, disposition of salvage materials and other fees paid. If relocation of business becomes necessary, access to customers and suppliers should be assured. In addition, workers losing employment in the process of relocating are entitled to transitional income support. Compensation for temporary impacts is calculated on the basis of the following criterion/principles;

. Compensation equivalent to lost income required for the duration of impact, . Compensation equivalent to lost income required for loss of access, and . Physical restoration of assets (or access).

In addition, PAPs are entitled to transitional assistance which include moving expenses, temporary residence (if necessary), employment training and income support while awaiting employment and should have an option for full replacement cost if duration of impact is to exceed two years. It should be noted that costs of construction vary from one locality to the other. PAPs that do not have license or legal permit and even squatters are eligible for compensation payment.

The basis for valuation is FDRE's Proclamation 455/2005 and Regulation No 135/2007 as well as, WB policy on involuntary resettlement. Valuation of affected assets and properties will be carried out by experienced and skilled valuators. Proclamation 455/2005, states that "The valuation of property situated on land to be expropriated shall be carried out by certified private or public institutions or individual consultants on the basis of valuation formula adopted at the national level."

In order to provide PAPs with adequate compensation for assets and properties they will be

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losing, proper valuation will be undertaken by the valuation committee and reviewed by the resettlement/compensation committee. The valuation committee, in close consultation with PAPs and in collaboration with resettlement/compensation committee will prepare unit rates for the affected assets to be determined on the basis of market value.

The proposed Distribution Rehabilitation and Upgrading Project in Adama does not require resettlement or relocation outside of their villages or Kebeles. Hence, there is no need of a plan, which is prepared to provide or finance housing infrastructure and social services.

5.5. Cut-off Date for Determining Eligibility

Eligibility to receive compensation is usually established through a cut-off date. Affected people who are settled in the area prior to the cut-off date, usually the date of census, are eligible persons (EPs). People who settle in the project affected area after the cut-off date will not be considered for compensation. For this particular case the cut-off date is the date when the property compensation survey is completed.

The impact assessment and identification of PAPs was carried out between November 15 to November 20, 2016.During the survey, households were advised and encouraged to report and register residential/business facilities and their useful assets that are likely to be affected by the proposed project activities. PAPs were also informed the cut-off date for claims as November 20, 2016,the date the baseline survey and household asset inventory completed. Any claim not reported and registered on or before the cutoff date will not be eligible for compensations and other forms of entitlements.

6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION

6.1. Public Consultation with Affected Communities, City and Kebele Administration

During the field assessment, various information dissemination and public consultations meetings were conducted with the affected communities, local community members, stakeholders, municipality and local Administration Officials.

Organizations that were consulted include: Bokushenen Kebele Administration, 14 Kebele Administration, Environmental Protection Sector Offices, Agricultural and Rural Development offices and local communities. By the process, 13 female and 23 male, totaling to 36 discussants took part in the consultation events in the respective Adama project site. The assessment team

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has discussed the positive and negative impacts of the Distribution Rehabilitation and Upgrading Project with the project affected people (PAPs) and with local administration officials. On the positive side, the contribution of the project to socio- economic development of the country in general and the supply of reliable electricity to the surrounding area was discussed.

The need of relocating houses and shop and the need for clearing Eucalyptus trees that are within the safety corridor and the temporary impacts, corresponding mitigation measures, valuation and grievance redress mechanism were discussed during all the meetings.

Generally, communities’ attitude towards the project is positive and local officials have expressed their willingness to support the Project in every necessary way. Participants of the meetings agreed on the general principles of compensation payments and requested reasonable, sufficient and timely compensation payments for their lost assets.

Brief summary of the discussion is presented below:

 Explanation was given to PAPs on the nature of the Distribution Rehabilitation and Upgrading MV line that requires 2.5 meter distance for buildings from the concrete pole in any other direction. It is observed that buildings can be relocated in their respective premises. However, the owner of the houses and shop has the right to claim according to Proclamation No. 455/2005, Expropriation of Landholdings for Public purposes and Payment of Compensation proclamation. Accordingly, an urban land holder whose land holdings have been expropriated be provided a plot of urban land, the size of which shall be determined by the urban administration to be used for the construction of shops.  The Distribution Rehabilitation and Upgrading Project will greatly contribute to the country’s socio-economic development; the distribution line that passes through the cities will supply electric power to the area and this will benefit the surrounding communities greatly. Therefore PAPs strongly support the Project and express their willingness to cooperate in every way that is required from them.  Timely compensation payment to be effected before the start of construction. The local Administration shall guarantee PAPs for full compensation payment before the construction starts. PAPs have also been informed that the Adama City Officials have the knowledge about the project.

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 The local community, members have underlined that the government has to follow proper and transparent compensation procedures for their resources to be lost and/or damaged, the project to prioritize employment for local community, compensation process will be completed before the construction starts.

Public Consultation at14 kebele.

Affected eucalyptus trees.

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Affected houses

7. PROPOSED ASSISTANCE FOR PAPS

As indicated earlier, the percentage of lose of assets and properties is less than or equal to 6 (table 4.2) and the impact of the project is limited to relocation of houses and shop in their own premises. PAPs who shall relocate their houses and shop will be paid for their loss. The amount of compensation for a building is determined based on the current price per square meter in their respective city administration.

8. INSTITUTIONAL RESPONSIBILITY

The Distribution Rehabilitation and Upgrading Project and local government administrations (City Administration and Kebele Authorities) will be responsible for the execution of the compensation payment operations. PAPs have been consulted on the compensation arrangements. Amount of cash compensation for the affected property and trees will be presented to each entitled PAP for consideration and endorsement before cash payment.

On this basis, the project office should assign a team, responsible for the effective and efficient implementation of the compensation estimated as per the valuation methods/techniques employed.

The actors in the implementation phase and their roles include:

. EHS&Q Experts (planning and monitoring) . The project office (execution of compensation /rehabilitation)

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. Woreda administration and municipality (facilitating the process of payment of compensation, valuation and compensation committee meetings). . PAPs (endorsement of arrangements)

9. SOURCE OF BUDGET AND COST ESTIMATE

9.1. Source of Budget

EEP will allocate budget for the implementation of compensation payment for the expropriated property to be implemented by the Distribution Rehabilitation and Upgrading Project.

Once the budget is approved and transferred to the project account, the implementation will be undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimate of property is to be done by Property Valuation Committees, established in accordance with article 10 of Proclamation No. 455/2005. The Finance Division is responsible for processing the estimated fund and finally the compensation payment will be disbursed through the Project office.

The amount of compensation will be determined according to Proclamation No. 455/2005, Part three, and Article 7. The amount of compensation will be paid at a replacement cost and also taking into account World Bank requirements. All compensations will be effected before the line stringing.

On the basis of the proclamation and regulation of compensation of the country and as per the data obtained from Adama town municipality, the standard unit cost for the affected properties being used for calculating the required compensation budget for affected assets in the proposed project site. The standard unit cost for the affected properties as to Adama town municipality is

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presented under table 9.1:

Type of Property to be affected Unit Cost/m2 (ETB) . Corrugated iron roofed and mud walled house per M2 915.53 . Corrugated iron roofed and brick/block walled house per M2 3023.00

Eucalyptus tree . ‘Chefeka’ (Small tree) 10.00

. ‘Mager’/ Purlin (Medium) 100.00

. ‘Quami’ (Big) 500.00

9.2. Compensation Cost Estimate of Shops to be relocated

The total compensation cost estimate for affected houses and shop is Birr 96,700.98 (USD 4,305.47).

Respective City and Woreda Administrations compensation rates for loss of houses and shop are used for calculating the compensation cost estimates. Estimated size of the affected building per m2 is multiplied by the unit price to get estimated compensation cost.

Table 9-1Compensation Cost Estimate of Shops Type of Unit Quantity Impacted Unit Total Cost Total Cost Shops Area (M2) Cost/m2 (ETB) (USD) Affected (ETB) Corrugated Number 6 66 915.53 60,424.98 2,690.33 iron roofed and mud walled house Corrugated Number 1 12 3023.00 36,276.00 1615.13 iron roofed and brick/block walled house Total 6 78 96,704.98 4,305.86

*Source: Adama City Administration (2016).

Exchange Rate: 1 USD = 22.46 ETH. Birr (Commercial Bank of Ethiopia November 17, 2016).

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9.3. Compensation Cost Estimate of Eucalyptus Trees

The total compensation cost estimate for affected Eucalyptus Trees is Birr 2000.00 (USD 89.04).

Table 9-2Compensation Cost Estimate of Affected Eucalyptus Trees S/No Project affected Unit Quantity Unit Total cost Total cost tree type cost(ETB) (ETB) (USD)

1 Eucalyptus tree ‘

4 500.00 2000.00 89.04 ‘Big’ (Quami) Number

Total cost 2000.00 89.04

*Source: Adama City Administration (2016)

Exchange Rate: 1 USD= 22.46 ETH. Birr (Commercial Bank of Ethiopia November 17, 2016)

9.4. Compensation Cost Breakdown for Affected Assets

The total compensation cost of the Project is about Birr 141,571.07 (6,303.25).The budget also includes internal monitoring cost.

Table 9-3Compensation Cost Breakdown for Affected Assets Item for Compensation Unit Quantity Total Cost for Total Cost for Compensation (Birr) Compensation in (USD) Total houses to be relocated No. 6 60,424.98 2,690.33

Shops to be relocated No 1 36,276.00 1615.13

Loss of Eucalyptus trees >> 4 2000.00 89.04

Grievance redness, 50,000.00 2,226.17 formation and orientation of the committee, log books and other costs

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Monitoring cost 30,000.00 1,335.70 Sub Total 178,700.98 7,956.41 Contingency 10% 17870.098 795.64 Total 196571.07 8,752.05

The amount of compensation for each owner of the eucalyptus trees is determined according to Proclamation No. 455/2005 by valuation committees that are already established in the respective City Administration and Woreda.

10. RESETTLEMENT SCHEDULE

The implementation process is assumed to begin as early as possible and has to be completed before the start of construction. The starting point in this process is the establishment of both Resettlement Implementation Committee (RIC) and the Property Valuation Committee at Woreda level. The committees will be responsible for the smooth implementation of the ARAP. As to the prevailing ARAP, all the necessary steps have been taken in to account. Consultations/discussions have been held with the officials of Adama town municipality and other relevant stakeholders. Table 10-1 presents details of the activities along with aligned time frame.

Table 10-1Resettlement Schedule

Activities Date Remark Establishment of RIC and Property Valuation Already established Committee Awareness Creation and Issuing of legal November, 2016 Notification for Compensation November, 15- November 20, Socio-economic survey and asset inventory 2016 Preparation of Draft ARAP November, 2016 Comment from stakeholders December 1-15,2016 Submission of final ARAP January, 2017 Implementation of ARAP February – March, 2017 Monitoring ARAP On-going over the project period

11. MONITORING/FOLLOW UP ACTIVITIES

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Monitoring and evaluation are continuous process. EEP and 8 Cities Distribution Rehabilitation and Upgrading Project Office will be responsible for the overall supervision of the implementation of the ARAP. The monitoring and evaluation process should be an integral part of this ARAP and will be a device for overseeing the implementation of ARAP and the extent to which it complies with the recommendations set out in the ARAP. Lessons learnt from the monitoring and evaluation results will be used to enhance the preparation and implementation of future resettlement action plans.

The Actors in the monitoring and evaluation process include:

. The EHS& Q Social and Environmental experts of EEP. . Municipality and Kebele Administration (for monitoring and evaluation) . Project Affected Persons (PAPs)

Field visit by the Project office will be conducted at least once in a month. Municipalities and Kebele Administration will conduct their own monitoring, but when possible, this will be done together with Project office and EHS&Q experts.

The EEP management team will make the necessary follow-up to ensure that proper monitoring is being undertaken.

The monthly monitoring report prepared by Project implementation unit staff will be submitted to local authorities (Woreda and Municipality). A copy of this will be submitted to MEFCC (Ministry of Environment, Forest and Climate Change) and EEP management. It will also be enclosed in the construction progress reports submitted by the supervising engineers.

12. EVALUATION

After completion of the resettlement/relocation operations, it is expected that PAPs will have a better or improved way of life compared to their previous situation. Therefore, relocation operations need to be monitored and evaluated to determine if PAPs have been able to reestablish their livelihood and living situation.

EEP will assign a qualified Sociologist/Social scientist to conduct individual evaluations of PAPs re-establishment socio-economic progress. This service aims at evaluating, and reporting on the level of living conditions and social services of the PAPs, both before and after the re- establishment. The evaluation will be done on quarterly and annual basis for two consecutive

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

years.

The evaluation work will be carried out within 6-12 months after the relocation date. Further assistance such as transportation services for PAP’s properties and loading/ unloading costs during relocation will be provided by EEP for those families who need support.

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ANNEX I:MINUTES OF MEETING

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ANNEX II: PHOTOS

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ANNEX III: CONTACTED PERSONS

No Full name of contact Person Title Phone/Email 1 AtoAberaSorri ULGDP-Coordinator 0913116656 2 AtoGenenneNegash Building Authority-Engineer 0913781632 3 AoFeyissaKewiti Infrastructure Engineer 0949398403 4 AtoGossaGirma ULGDP-Electrical Engineer 0910935395 5 AtoAmanHussen Adama town Manager -- 6 Ato Kemal Jemal Adama town Land Management 0913114309 head 7 Tekesete Adama EEP-Engineer 0913898300 8 KebebushKebede Community consultation Expert 0912217515 9 AbaderLengissowado CEO- Kebele 14 -- 10 GetuTatek Adama ULGDP monitoring and 0913169931 Evaluation Specialist 11 AtoShiberuNurra Community Consultation Expert 0921685848 12 Alemitu Banka Community Consultation Expert 0918111908