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Challenges in Implementing Best Practices in Involuntary Resettlement a Case Study in Sri Lanka

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Challenges in Implementing Best ChALLengeS in impLementing BeSt pr Practices in Involuntary Resettlement A Case Study in Sri Lanka Infrastructure projects sometimes physically displace households and disrupt income sources and livelihoods. The Asian Development Bank offers several good governance practices to its borrowers to minimize such adverse impacts, especially since the absorption of such best practices by countries is usually slow and erratic. This book presents an in-depth case study from a complex and sensitive infrastructure project in Sri Lanka, where international best practices in involuntary resettlement were successfully merged with local legal systems. The book demonstrates that the application of best practices to infrastructure projects needs continuous consultations with affected people and a firm commitment of resources. AC About the Asian Development Bank tiCeS in i ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, nvo it remains home to a large share of the world’s poor. ADB is committed ChAllenges In ImPlementIng Best to reducing poverty through inclusive economic growth, environmentally LuntA sustainable growth, and regional integration. PRACtICes In InvoluntARy Resettlement Based in Manila, ADB is owned by 67 members, including 48 from the ry A Case Study in Sri Lanka region. Its main instruments for helping its developing member countries reSettLement are policy dialogue, loans, equity investments, guarantees, grants, and Jayantha Perera technical assistance. Amarasena Gamaathige Chamindra Weerackody ISBN 978-92-9257-633-2 AsiAn Development BAnk 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ASIAN DEVELOPMENT BANK SARD Challenges in Implementing_COVER - 29 Nov 2016.indd 1 11/29/2016 5:52:37 PM CHALLENGES IN IMPLEMENTING BEST PRACTICES IN INVOLUNTARY RESETTLEMENT A Case Study in Sri Lanka Jayantha Perera Amarasena Gamaathige Chamindra Weerackody ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISBN 978-92-9257-633-2 (Print), 978-92-9257-634-9 (e-ISBN) Publication Stock No. BKK168030 Cataloging-In-Publication Data Asian Development Bank. Challenges in implementing best practices in involuntary resettlement: A case study in Sri Lanka Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. Social safeguards. 2. Sri Lanka. 3. Resettlement. 4. Development projects. 5. Safeguard policies. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Attribution—You should always acknowledge ADB as the source using the following format: [Author]. [Year of publication]. [Title of the work in italics]. [City of publication]: [Publisher]. © ADB. [URL or DOI] [license]. Translations—Any translations you create should carry the following disclaimer: Originally published by ADB in English under the title [title in italics]. © ADB. [URL or DOI] [license]. The quality of the translation and its coherence with the original text is the sole responsibility of the translator. The English original of this work is the only official version. Adaptations—Any adaptations you create should carry the following disclaimer: This is an adaptation of an original work titled [title in italics]. © ADB. [URL or DOI][license]. The views expressed here are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: In this publication, “$” refers to US dollars. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda Printed on recycled paper Contents Foreword xi Acknowledgments xiii About the Authors xv Abbreviations xvii Introduction 1 Involuntary Resettlement Safeguard Policies 4 Objectives and Scope 5 Southern Transport Development Project 6 Methodology 8 Structure of the Book 11 Chapter 1 Key Milestones in Project Planning and Implementation 15 The Genesis of the Project: Local Planning Initiatives 15 Planning of the Project: ADB Planning Initiatives 19 Project Feasibility Study 20 Regional Social and Economic Impact Study 21 Social and Environmental Impact Assessments 22 The Resettlement Plan 23 The Resettlement Implementation Plan 1 24 The Resettlement Implementation Plan 2 25 Project Approval 26 Project Implementation 28 Conclusion 37 Chapter 2 Socio-Legal Background of the Project 39 Socioeconomic and Poverty Dimensions 40 Local Regulatory Framework for Land Acquisition and Resettlement 44 Land Acquisition Act No. 9 of 1950 45 National Environmental Act (1980) and the Amendments of 1988 48 iii iv Contents The National Involuntary Resettlement Policy 49 The Land Acquisition and Resettlement Committee 52 International Best Practices and Resettlement Planning 54 Shifting Alignment of the Expressway and Public Litigation 55 Accountability Mechanism: Watchdog of Best Practices 60 Recent Developments beyond the Southern Transport Development Project 65 Conclusion 68 Chapter 3 Best Practices in Resettlement Planning and Implementation 71 Part 1: Best Practices in Resettlement Planning 71 Learn from Previous Projects 71 Conduct a Comprehensive Social Impact Assessment 72 Prepare an Involuntary Resettlement Framework 72 Update the Resettlement Plan after Project Approval 75 One Resettlement Implementation Plan for the Project 77 Long-Term Review and Assistance in Implementing the Resettlement Implementation Plan 78 Project-Specific Compensation Package 80 Combined Cash-for-Land and Land-for-Land Compensation 81 Engagement of Affected Persons in Resettlement Planning 81 Part 2: Best Practices in Resettlement Implementation 83 Expedited Land Acquisition 84 Accelerated Land Acquisition 85 Resettlement Assistants as Catalysts 87 Capacity Building during Project Implementation 88 Donor–Borrower Partnership in Conflict Resolution 89 Conclusion 92 Chapter 4 Institutional Framework for Resettlement Planning and Implementation 95 Part 1: The Institutional Framework for Land Acquisition and Resettlement 97 Institutional Structure during Phase I of Resettlement Planning (1998–2003) 98 Ministries and Agencies Engaged in Land Acquisition and Resettlement 99 Ministry of Lands 99 Steering Committees and Coordination Committees 99 Road Development Authority 101 Land Acquisition and Resettlement Division of the Road Development Authority 102 Contents v Divisional Secretariats, Survey Department, and Valuation Department 103 Project Management Unit 104 Regional Offices 105 Land Acquisition and Resettlement Committees 105 Grievance Redress Committees 107 Management Consultants 107 Internal and External Monitoring System 108 Revised Organizational Structure (2003–2010) 109 Deputy Project Directors 111 International Resettlement Consultant 111 Super Land Acquisition and Resettlement Committee 112 Public Complaints Resolution and Monitoring Committee 112 External Monitoring 113 Overview 114 Part 2: Assessment of Strengths and Weaknesses of Institutional Arrangements 115 Perspectives of the Road Development Authority 116 Perspectives of Management Consultants 117 Perspectives of Resettlement Specialists 119 Perspectives of the Affected Persons 122 Perspectives of the Independent External Monitoring Agency 123 Part 3: Institutional Capacity Building 124 Best Practices in Institutional Arrangements 125 Conclusion 126 Chapter 5 Compensation at Replacement Cost and Rehabilitation 129 Replacement Cost 130 The National Involuntary Resettlement Policy and Replacement Cost 133 Replacement Cost and Associated Entitlements
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