Updated Land Acquisition and Resettlement Plan

November 2018 Main Report – Part 2 of 2

PAK: Regional Economic Cooperation Regional Improving Border Services Project – Border

Prepared by the Federal Board of Revenue, Government of for the Asian Development Bank. This is an updated version of the draft originally posted in May 2015 available on http://www.adb.org/projects//46378-002/documents.

This updated land acquisition and resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

SECTION 2

SCOPE OF LAND ACQUISITION AND RESETTLEMENT

2.1 OBJECTIVES OF LAND ACQUISITION AND RESETTLEMENT PLAN

36. Main objective of the LARP is to identify the physically and economically affected persons, assess the impacts on APs, provide compensation to APs, and develop a mechanism to implement LARP. For Torkham BSIP, LARP is prepared by Federal Board of Revenue (FBR) as per resettlement policy provisions defined for the project consistent with requirements of ADB’s Involuntary Resettlement Policy requirement-II under SPS 2009 and the Frontier Crimes Regulations (FCR) 1901. It identifies the APs, assesses all project impacts and sets out objectives, principles, compensation criteria and public participation mechanisms to rehabilitate the APs. For updating the LARP, socio-economic survey and census of APs is carried out in the project area. The impacts are identified, assessed and linked with respective APs. 2.2 SCOPE OF LARP 37. The updated LARP includes identification, evaluation and compensation of land and non-land assets, and collection of census data linked with impacts to determine impact significance and compensation entitlement against each asset lost including measures to rehabilitate and restore APs’ living standard at pre-project level. 2.3 SCOPE OF LAND ACQUISITION 38. As per master plan of the Torkham BCP, about 59.3125 acres of the land will be required to construct new trade terminal and allied facilities, including 5.3125 acres for passenger terminal and 54 acres for the trade terminal. In the passenger terminal 2.18 (41%) acres land is owned by the political administration which will be handed over to the proposed project as when required. The remaining 3.125 (59%) acres is communal land. Negotiations with the by the Political Administration for leasing of 3.125 acres communal land is underway and lease agreement of this land will be finalized by 30 November, 2018. Of the land required for the trade terminal, 37.5 (66%) acres is communal land which is owned by three clans of Khuga clan of Pashtun tribe and has been leased for 99 years lease from the Khuga Khel tribe with the annual increase of 5%. About 16.5 (34%) acres is leased by the army from the tribe. NOC of this Army land has been issued by the relevant department of (attached as annex-II). Location plan of the trade and passenger terminal is in figure 2.1. In tribal areas, generally the land is regarded as power source and symbolically it embeds the link one individual has with his ancestors who inhabited and used that land before. Selling land is not considered honorable practice. Land is either provided free of cost in community’s interest or leased out to government for execution of public interest project in the area. Such leases are for longer period based on mutually agreed terms and conditions for lease tenure, rate and compensation payment mechanism. Accordingly, instead of giving-up the land title by selling it to government on permanent basis, the local community (Khuga Khel clan of Shinwari Pashtun tribe has agreed to lease their land based on mutually negotiated terms and conditions. An agreement has been signed with the Khuga Khel tribe of 300 kanal (37.5 acres) to lease the land for 99 years. NLC will provide Rs.20 million every year to the Khuga Khel with the increase of 5% and give Rs. 600 from every truck. Table 2.1 below show details of land subject to acquisition with respect to title and land use pattern.

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Figure 2.1: Location Plan of the Trade and Passenger Terminal

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Table 2.1: Summary of Land Use10 A. Export Yard Quantification Sr. No. Description Area (Acres) 1 Built-Up 1.00 2 Barren Land 19.81 3 Road 1.33 4 Existing Petrol Pump 1.13 Total 22.14 B. Import Yard Quantification Sr. No. Description Area (Acres) 1 Built-Up 0.52 2 Barren Land 31.34 Total 31.86 C. Passenger Terminal Quantification Sr. No. Description Area (Acres) 1 Built-Up 1.86 2 Barren Land 3.45 Total 5.31 Grand Total A+B+C 59.31

Plate 8: General view the Proposed Trade Plate 9: A view of the Proposed Passenger Terminal Terminal

2.4 LOSS OF TREES 39. Data regarding trees (wood and fruit trees) was collected through field survey. All the trees are on the communal land and owned by the local community of Khuga Khel tribe. These wood trees belong to three different species. Table 2.2 below provides the list of impacted trees with sizes. Table 2.2: List of Trees

Sr. No Species Total Girth Size Ownership Non-Fruit (wood) Trees 1 Acacia Nilotica 8 Below 75” Khuga Khel tribe 2 Mulberry 1 Below 30” Khuga Khel tribe 3 Eucalyptus 29 Below 49” Khuga Khel tribe Total 38

10 Based on GIS Calculation

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2.5 LOSS OF STRUCTURES 40. 75 structures owned by 52 persons will be affected. Most of whom are living in Torkham and . A. Affected Structures in the Trade Terminal Area 41. At the import export terminal area, 54 structures of different sizes and dimensions including 7 residential structures and 47commercial structures comprising grocery store, tyre repairing shops, saloon, hotels, 2-rooms, 2-weigh stations and one petrol pump. Important Infrastructures mark on the satellite imagery of the project is attached as figure 2.2. 42. Out of the 54 structures, 7 commercial structures (1 petrol pump, 2 weigh stations, 2 cabin and 1 hotel) are on land leased by the army. Table 2.3 below provides summary about asset type, type of construction and affected area.

Plate 10: A view the affected Petrol Plate 11: Affected Weigh Station Table 2.3: Details of Affected Infrastructure in the Trade Terminal Area

Sr. Description Quantity Pacca Semi Katcha Kiosk No. Structure Pacca 1 Kiosk(general 25 25 store/tyre repairing) 2 Tyre repairing shop 2 1 1 3 Hotels and one 11 1 10 grocery Store 4 Saloon 1 1 5 Tandoor 3 3 6 Rooms 2 2 7 Weigh station 2 2 8 Petrol pump 1 1 9 Houses 7 1 6 Total 54 10 12 7 25

B. AffectedStructures in the Passenger Terminal Area 43. Following infrastructure fall in the passenger terminal area (Figure 2.3 shows Important structures exist in the Passenger Terminal area);

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Table 2.4: Details of Affected Infrastructure in Passenger Terminal Area

Semi Sr. No. Description Quantity Pacca Structure Katcha Pacca 1 Shops 9 9 0 0 Markets-3 (10 2 10 7 3 Shops) 3 Katcha room 2 2 Total 21 16 3 2 2.6 IMPACT ON INCOME/LIVELIHOOD 44. Businesses (petrol pump and weigh stations) will be kept intact and operational until these are constructed in their allocated place in the new terminal or nearby land as agreed in result of ongoing consultations between the local , PA and FBR. Thereby, these business owners and their employees will face no loss of income/livelihood. 45. The owners of the shops and hotels prefer cash compensations for the business premises (land) and they will shift to other population centers available in the vicinity to re- establish their business such as in Torkham and Landi Kotal. Out of the total 52 APs 34 APs own 48 operational commercial structures. While remaining 18 APs are 7 house owners and 11 non-operational commercial structures fall in the passenger terminal area. Income-level of the commercial APs are given in below table. Table 2.5: Income level of the Commercial APs Sr. Type of Affected Infrastructure No. Grocery Tyre Hotel Other (Petrol Total Shop Repairing Pump, weigh Shop stations, Saloon Income Group etc. 1 Up to 15,000 2 3 0 1 6 2 15,001-30,000 4 6 2 1 13 3 30,001-50,000 4 0 3 0 7 4 51,001-75,000 1 0 4 0 5 5 75,001 and 0 0 0 3 above 3 Total 11 9 9 5 34

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Figure 2.2: Important Structures in Trader Terminal Area

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Figure 2.3: Important Structures in Passenger Terminal Area

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2.7 Impact on Livelihood of the Employees Working on Shops and Hotels 46. The employees of the shops and hotels are treated as indirect/secondary affectees and will be eligible for assistance due to the loss of livelihood, employment, and work opportunity (full-time/part time) due to the dislocation. One-time cash allowance for three months @ i.e. minimum govt. wages Rs.15,000/month lump sum will be paid to the 33 affected employees for restoration and rehabilitation of their livelihood. It is expected that the affected employees would be able to recover their losses and/or find alternative employment within this period. The construction of the proposed project will also generate a steady labor market for employment. Such affected employees will be given priority in employment by the construction contractor subject to their eligibility. 2.8 INDIGENOUS PEOPLE 47. The area bordering with is under administrative control of Federal Government and is termed as Federally Administered Tribal Areas (FATA). It has 13 regions including 7 Agencies (Khyber, Bajur, Kurram, , , North and South Waziristan) and 6 Frontier Regions (FR , FR , FR Tank, FR Laki, FR and FR DI Khan). With a total area of 22,720 km2 the entire region of FATA is inhabited by Pashtun of Sunni Muslim sect that have inter- clan linkages with in settled areas of adjoining Khyber Pakhtunkhwa and Baluchistan and are fully embedded in the socio-cultural and economic system of the country. The project site in Khyber Agency and the APs belong to mainstream Pashtun population of the region having cultural, customary, economic, social or political institutions similar to the mainstream population of the area. 48. The Pashtun tribes living in FATA or in settled regions of Pakistan belong to same ancestry and have inter-clan linkages. The distinct governance in FATA with tribal system intact is recognized in the Constitution of Pakistan and given due representation in the local administrative system. The applicability of ADB’s indigenous peoples’ safeguards for the project to be executed in FATA region is considered. Accordingly, considering the project physical impacts on land and land-based assets additional socio-cultural and economic impact on lives of the affected communities are reviewed and discussed. 2.8.1 General Economic and Socio-Cultural Impacts on Tribal APs 49. Based on the physical impacts detailed above the project will not impact current system of production and livelihood of the APs as long as appropriate compensation is timely provided to them to replace/relocate houses, commercial buildings and compensate business losses. It is also worth to note that the project site is hilly barren and unproductive terrain along the famous trade route between Central Asia and sub-continent and core of the Shinwari Pashtun economy has become increasingly embedded in transport and trade related commercial activities, and in salaried work in the cities. With no doubt the Khuga Khel clan of Shinwari Pashtun successfully masters the money economy due to available current Torkham BCPand with improved border crossing facilities they will not be put out of control of their means of economic reproduction. 2.8.2 Significance of Socio-Cultural Impacts 50. Based on ADB indigenous peoples’ safeguards, a development intervention has impact on IPs when it: (i) affects customary rights of use and access to land and natural resources; (ii) changes socioeconomic and/or cultural integrity;(iii) affects health, education, livelihood, and social security status; and (iv) causes impacts that may alter or undermine the recognition of indigenous knowledge. Each of these points is discussed below:

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i. Customary Rights of use and Access to Land and Natural Resources: Although, plots occupied by affected households will have to be acquired through mutually agreed lease rate and compensated, the APs customary rights on land use and access in the remaining communal land will not be changed and as long as this land right change does not happen the land will remain under control of the maliks (tribal elders) and any change will have to be negotiated between them and the PA. To make sure that the terms of the "deal" negotiated between maliks and PA are documented transparently & the compensation program carried as agreed, this LARP was prepared. ii. Change in Socioeconomic status or Cultural Integrity: The APs are not isolated tribes living in a state of pristine isolation rather they are invariably embedded in the broader Pakistani reality, and they have relations with the surrounding political and economic world. Historically, the Shinwari are increasingly embedded and trade and transport economies and the improvement in border services will not change the situation. Besides the Shinwari people keep moving in and out tribal areas to improve their business links and access better civic amenities available in urban centers of Pakistan and with this their culture is continuously changing and this will continue with or without the improved Border Services Project. In general, improvement of border services will have no impact on the APs socio- economic status or cultural integrity in the project area. This is so as the Shinwari’s will remain in control of their resources, and will continue to have both political, administrative and police means to defend their position from outsiders’ pressures. The administration in FATA is carried out with assistances of local tribal maliks and the tribes have their designated share in the tribal police (Khasdar/Levis). The Shinwari tribe has its share in local police as 256 persons in Khasdar Force and 75 persons in Levis of Khyber Agency. iii. Health, Education, and Social Security Status: The improved border facilities will lead to improved road infrastructure in the region and it is expected that APs access to basic civic amenities will increase with passage of time. Further expected improvements in the BCP facilities will increase the socio-economic activity and improved economy will help to boost expenditure on social security, meanwhile the reduced idling-stay of truckers due to improved processing facilities will also minimize social security risks for the local community. iv. Indigenous Knowledge: The APs belonging to Shinwari Pashtun tribe are not isolated people oriented by an isolated culture rather they are fully embedded in the of the mainstream population region wide. Execution of the project will do nothing to implicate the information & their indigenous knowledge. 51. Based on the above there are clear elements to indicate that the implementation of the Project in FATA will not impact on the local administrative, legal and traditional system of the FATA region. It will not change or impact socio-cultural status of the affected Shinwari Pashtun tribe. Hence, it will not trigger the IP impact benchmarks as detailed by ADB’s SPS 2009. However, keeping in view the customary land management system in FATA under FCR 1901, and the recognition of the local dispute resolution system, the LARP is prepared in a manner that is fully reflective of local customs, land management practices and grievance resolution mechanisms in FATA.

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2.9 ARCHEOLOGICAL, HISTORICAL AND RELIGIOUS SITES 52. No archaeological and historical sites were found within the project boundary or in the vicinity of the project site. 2.10 IMPACT ON VULNERABLE PEOPLE 53. Displaced poor and other groups disproportionately affected by land acquisition for execution of the project including landless elderly, disabled and female headed households are termed as vulnerable. As per census carried out in January 2018,4 vulnerable persons were identified in the passenger terminal area. Refer to APs table for the vulnerable person details.

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SECTION 3

FATA AND SOCIO-ECONOMIC PROFILE OF THEAFFECTED PERSONS

54. The project site is located in the Federally Administered Tribal Area of Pakistan which is an administrative unit like other administrative units (Provinces) of the country. The administrative and legal system of FATA is distinctive. FATA runs as a narrow tract between the KhyberPakhtunkhwa and the Pakistan-Afghanistan borders which is mostly hilly tract. It consists of seven semi-autonomous agencies or administrative units – Khyber Agency, Mohmand Agency, Bajur Agency, Kurram Agency, Orakzai Agency, North Waziristan and South Waziristan Agencies. Additionally, the FATA also includes 'Frontier Regions (FR)' that adjoin the settled districts of Khyber Pakhtunkhwa including FR Peshawar, FR Kohat, FR Bannu, FR Lakki , FR Tank and FR Dera Ismail Khan. This tangled mass constitutes an area of 27,224 km2 and is inhabited by around 3.17 million's people belonging to different Pukhtuns or Pashtun tribes. The project site (Torkham Border Crossing) is located on Pakistan-Afghanistan border of Khyber Agency which is predominantly occupied by the , Shinwari, and Orakzai Pashtun tribes. 55. Section-A below briefly describes the historical background of FATA with present administrative system, demographic spread and anthropogenic history of Pashtun community living in the region on both sides of (Pak- Border) and in FATA. It also includes Pashtun social structure, social organization, leadership structure, administration and conflict resolution system to identify and assess impacts on the indigenous people (if any) and propose the resettlement and rehabilitation provisions accordingly. Section-B discusses the socio-economic status of APs. A. HISTORIC BACKGROUND, ADMINISTRATIVE & SOCIAL STRUCTURE IN FATA 3.1. THE FEDERALLY ADMINISTERED TRIBAL AREA (FATA) a. Colonial Period Under British Regime 56. The Pashtun tribes that inhabit the hills of the borderlands between Pakistan and Afghanistan have a long history and they have endured several invasions of the Indus Valley. Before the arrival of the British, there had been no special Agency for dealing with the Pukhtoon tribes' in the area and this region worked as buffer between the Central Asian States and the sub-continent (India). After repeated expeditions by the British army, the North Western sections of the borderland were subjugated in later part of 19th century. In 1901 the area was placed directly under the rule of the Governor General of India through the chief commissioner of the Punjab province, who acted as his agent by dividing it into two separate areas i.e. the "settled areas (present Khyber Pakhtunkhwa Province)" and "tribal areas (present FATA)" that were subject to different legal-administrative statuses for governance purposes. 57. Unlike Pashtuns tribes in settled area of Pakhtunkhwa Province, the Pashtun tribes, living between the and the Gomal rivers (Now FATA), were harder to control and tribes living in the hilly tracks maintained their identity through the tribal code and their cultural organization. The tribal areas were a continuous source of trouble for British Indian stability. In return to subjugation under colonial rule, the tribal areas along the Durand Line were given semi-autonomous status with allowances and subsidies granted to the tribal maliks and elders that were formalized through various agreements and treaties. One such arrangement P a g e | 26 was the introduction of the Frontier Crimes Regulations (FCR) by the colonial government to maintain law and order and which by 1901 was completely promulgated in all occupied frontier districts of tribal area. Each frontier district was given the status of an Agency and political agents for each agency were appointed as administration head. b. Pakistan regime 58. The Indian Independence Act of the 3rdof June 1947 abrogated the special treaties and the tribal Jirga signed an instrument of accession with first Governor General of newly created sovereign Muslim state, the Pakistan, in return for continued allowances and subsidies. Pakistan also retained the semi-autonomous status of the area with the Governor General assuming direct administrative jurisdiction over it. 59. Except for minor changes, the 1956, 1962 and 1973 constitutions of Pakistan retained the same arrangements, as the governor general, and then the President of Pakistan, assumed the administrative jurisdiction of the FATA through the Khyber Pakhtunkhwa Governor acting as his agent. Figure 3.1: Map of Federally 60. The present constitutional status of FATA is Administered Tribal Areas of Pakistan enshrined in Articles 246 and 247 of the 1973 constitution of the Islamic Republic of Pakistan, conferring continuity of status enjoyed during British rule. The constitution provides for a special mode of governance under tribal customs and traditions through a political agent (PA), who acts as a representative of the federal and provincial governments. The unique status of the tribal area confers three special privileges. In the tribal area, the legislation is the responsibility of the President of Pakistan. Federal and provincial laws of Pakistan have to be specifically extended to the area under Presidential Order. The superior courts of the country have no jurisdiction and its semi-autonomous status cannot be altered without the prior consent of the people of the tribal areas.

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3.2. DEMOGRAPHIC SPREAD OF PASHTUNS IN AND AROUND FATA REGION 61. FATA has a population of 3.176 million predominantly comprising of the Pashtuns, who in Persian are known as Afghans and in Indian as Patahns. In Pushto they are called Pashtuns or Pakutuns in northern dialect. The vast majority of Pashtuns are found in the traditional Pashtun homeland, located in an area south of the Oxus River in Afghanistan and west of the in Pakistan. In Pakistan the Pashtuns are 15.42% of total population of Pakistan while in Afghanistan Pashtun population is 42% of its total. The map Figure 3.2: Map showing demographic showing demographic spread of Pashtun population spread of Pashtun Population in the region is pasted. 62. In Pakistan, Pashtun dominated regions are Khyber-Pakhtunkhwa province, FATA and part of Baluchistan, while additional Pashtun communities are located in the Gilgit– Baltistan province, and northwestern Punjab province of Pakistan. After Punjabis, the Pashtuns are the second largest in Pakistan, while the population of Pashtuns living in FATA is only 15% of total Pashtun Population of country. Vast majority of the Pashtun ethnic group is living in other parts of country particularly in the adjoining provinces of Khyber Pakhtunkhwa, and Baluchistan and in Karachi city of Sind province. Some estimates reflect that Pashtun population in Karachi is 7 million which is almost double of the Pashtun population living in FATA. 63. The entire Pashtun population in the region is Muslim, predominantly following Suni sect of and it is believed that a non-Muslim could not be of a Pashtun dynasty. There are also sizeable Muslim communities in India, which are of largely Pashtun ancestry. Throughout the , excluding Pashtun-dominated regions where Pashtuns are generally known with their tribe name, they are often referred to as Pathans. The figure above shows the demographic spread of Pashtun population in the region. 3.3. PASHTUN TRIBAL STRUCTURE AND SOCIETY IN FATA 64. The Pashtun social organization is based on patrilineal tribal and egalitarian principles marked by the absence of hereditary authority figures. A patrilineal tribe is a socio-political entity associated with a territory and gathering people assuming a common descent from a common male ancestor many generations ago. Each Pashtun tribe (Qoum) is comprised of various clans (or Khels), Lineages (Tappa), lineage-sections (Bajar/Plarina) and finally households/extended families (Kor). The household is the basic production and consumption unit. Lineages and sub-lineages are cohesive groups and clans and tribes are rather abstract unit of symbolic but not-necessarily practical day-to-day relevance. Lineages have demonstrated descent while clans have stipulated descent. This means that within a lineage, people genealogies are well documented from the apical ancestor to the present. At the level of a clan genealogies are assumed but not necessarily clearly traceable11. 65. Although these tribes and clans differ in name, tribal society is based on many characteristics which are relatively uniform and cohesive. It is based on inter-clan linkages,

11QaisbinAl-Rashidbin Qaisin the seventh century leader, who had four sons: Sarban, Bitan Ghurghust and from whom all Pukhtun tribes (i.e. Afridi in Faridunbin Manibin Karlanri-binAl-Walidbin Khalidbin and Al-Rashidbin Qais) trace their descent. P a g e | 28 which unite families, clans and tribes in a web of kinship. The family structure is the most complex feature of tribal society and underpinned by family honor, property and intra-family relationships characterized by love and hate. 66. Each family is headed by a patriarch, who is well-respected and his decisions are obeyed by the entire family. Then Malik64 or tribal elder as head of each of the sub-clans. Tribal elders are hereditary in tribal communities. Household structures are alike and mostly take the shape of fortresses. These fortress-like houses often comprise of 10 to 15 sub- houses within one enclosure which may house one extended family. Each such family is represented by a head, which may be the grandfather of several sons and grandsons. In this context, the Pashtun people constitutes a very real cultural and social entity. 67. In Pashtun society, there are important traditional and social factors which guide community life and in many cases influence or even determine the action of individuals. These traditions vary considerably in different parts of the Pathan area, and codification of them is virtually impossible. However, certain traditions are common and basic to Pashtun tribal system. These un-codified set of rules, which guides the Pashtun way of life, is called the Pukhtoonwali-the code of Pashtun honor. Pashtuns, living in the areas on both sides of the Durand Line (Pakistan-Afghanistan border) have preserved their centuries-old culture and traditions. “Pukhtoonwali” that they strictly observe and quote with pride, guides their lives and is their dearest value, and controls their routine lives, behavior and attitudes. The three main obligations of Pukhtoonwali for a Pushtun include: Nanawati, which means 'begging for pardon or protection' by confessing faults or wrongs committed and throwing oneself at the mercy of the family whose sense of honor is injured; Milmastya or open- handed hospitality and protection to all who may, or may not, demand it, is the greatest obligation of the Pukhtoonwali. Sometimes, protection and hospitality may even be extended to an enemy as long as the enemy remains in the host community. Badal means revenge. Under the Pukhtoonwali, Pashtuns are obligated to seek revenge if they feel they have been wronged, regardless of the consequences. 68. The above traits of Pukhtuns wali are practiced in all Pushtun inhabited areas of Khyber Pakhtunkhwa, Baluchistan and Afghanistan. However, with the passage of time the spirit is fading in urbanized settled area and the authentic practice remains only in the remote areas of Pashtuns. However, in FATA (all 7 agencies and 6 FRs), the Pushtun tribal community is given liberty to live their lives as per their local customs and traditions. Even, Government Administration also follows the local customary practices and the local malik are involved in adjudication of the criminal and civil disputes in the area to maintain peace and order following local customs. 3.4. LEADERSHIP AND ADMINISTRATION IN FATA A.The Traditional Sphere 69. In traditional times power among the tribes was held by malik and was manifested in their legitimacy as arbitrators and decision-makers. Given the relative nature of kinship relations this meant that no elder could be a superior arbitrator than others solely based on kinship. For this to happen it was necessary that an influential elder could reinforce his position with his personal attributes. Such attributes included charisma, reputation as arbitrators, wealth, capacity to keep together large numbers of followers, ability to manipulate Islamic and genealogical knowledge, and last, but not least, in later times capacity to manipulate colonial and state powers. The Malik were exercising their functions as mediators as members of special tribal councils called Jirga which were organized every P a g e | 29 time there was a major conflict to settle or a major decision to take. Besides settling inter- tribal disputes, the Jirga is also used to manage the tribes’ relations with outside world12 b.The State Sphere 70. The State control of tribal areas rests on a specific form of administration that is different from administration exercised in other provinces in Pakistan, but homogenous throughout FATA region in all 7 agencies and 6 FRs. As per accession agreements signed with the tribal elders at the time of independence (1947) a semi-autonomous status of the FATA is maintained. The administrative affairs in FATA are performed by the Political Agent (PA) with tribal representation to maintain peace as well as law and order situation in the area under his jurisdiction. Each tribal agency is an analogous unit to the district in settled areas and a person with equivalent rank to the Deputy Commissioner is appointed as Political Agent in the Agency. In 6 Frontier Regions, the Deputy Commissioner of adjoining settled district act as PA. The PA has the administrative and judicial powers under applicable law the FCR 1901. 71. Generally, each tribal agency is headed by the PA. Depending on its size, the PA has about 2 to 3 assistant PAs, about 3 to 4 tehsildar and 4 to 9 naib tehsildar with the requisite supporting staff to assist the PA in performing his functions. Each agency has roughly 2,000 to 3,000 and levies (tribal police) and 5 to 9 wings of frontier constabulary (FC) for maintaining law and order in the sgency and border security. The khasadars/levis comprise of local tribesmen with proportionate representation of each tribe living in the agency. 72. This administration is centered on the function of PA as the highest government officer (with exclusive executive and judiciary roles) and on the functions carried out by his office. However, the tribal elders are absorbed into the broader political formation through their formalization as tribal representatives with the state administration while the Jirgais a common instrument to take decisions involving internal tribal affairs, disputes and feuds. Each tribe and clan is given a specific quota of malik positions “official” which is proportionate to their political/military strength and their demographic dimension. The Malik receive a government stipend and may use the power of the state to enhance their influence within the tribes. 3.5. LEGAL FRAMEWORK IN FATA AND JUSTICE SYSTEM. 73. Administratively, the tribal area developed a peculiar culture of its own. Tribal people were granted maximum autonomy and allowed to run their affairs in accordance with their Islamic faith, customs and traditions. Administration in tribal areas is often said to be “cost effective” because of the tribes and elders’ collective and territorial responsibilities in maintaining law & order. 74. “Country’s criminal and civil laws are not extended to FATA areas and all 7 tribal agencies and 6 FRs in FATA are controlled under Frontier Crimes Regulations 1901 through PAs in tribal agencies or deputy commissioner (DC) of adjoining districts in FRs, who are responsible for keeping peace, control on crimes and adjudication of civil matters between tribe’s men. For Governance of FATA, Pakistan government has maintained status quo. An amendment in 2011 in FCR 1901 introduced legal reforms in the tribal areas to bring FATA

12The British concluded written treaties with Jirga, guaranteeing non-interference in tribal affairs so long as the Jirga recognize their suzerainty. The Government of Pakistan honors these treaties and has entered into similar arrangements of its own. Thus, the Jirga is a normally recognized institution in the tribal areas of Pakistan. P a g e | 30 legal regime in harmony with other Pakistani Laws. Section 56 is inserted in the FCR 1901 for protection of property rights and payment of compensation determined with a consensus rate13 or Government-assessed value14 as in vogue in settled areas. 75. All civil and criminal cases in FATA are decided under the Frontier Crimes Regulation 1901 with representation of local elders through Jirga (council of elders) following local customs. The Jirga investigates the issue and gives its findings to the PA/DC (as the case may be) to adjudicate the issues according to tribal customs. Based on findings of Jirga, the PA/DC passes the decree. The appellate authority against decisions of PA/DC rests with Commissioner and the FATA tribunal. Residents of the tribal areas may, however, approach the apex courts (Supreme Court of Pakistan and Peshawar High Court) with a constitutional writ challenging a decision issued under the 1901 Regulation.”

3.6. POLITICAL AND ADMINISTRATIVE SETUP. 76. The tribal areas are represented in both Pakistan's lower and upper houses. Previously, tribal people had no party-affiliations and could contest as independent candidates, because the Political Parties Act had not extended to the tribal areas. The tribal areas were granted universal adult franchise in 1997 and political parties Act was extended to FATA in 2012 and the country’s all leading parties nominated their candidates in FATA during 2013 elections. 77. At the Federal Government, the Ministry of State and Frontier Region (SAFRON) is responsible for FATA matters but the executive authority rests with the President of Pakistan and the Governor of Khyber Pakhtunkhwa act as his agent to exercise its executive powers. The governance system in FATA is changing in line with the Federal Government’s policies, which will inevitably affect their historical autonomy. The civil administration was both formerly managed by the FATA Cells within the NWFP (Now Khyber Pakhtunkhwa) government and the FATA Development Corporation. These line departments and agencies were recently consolidated under the office of the Governor of NWFP as Governor’s Secretariat for FATA. The FATA Secretariat is responsible for administration of the development activities and increasing funding for FATA programs. Meanwhile, in the FATA population, the desire for change of administrative system either by integrating FATA into Khyber Pakhtunkhwa Province. On 24 May 2018, the National Assembly of Pakistan passed a bill to enact the Thirty-first Amendment to the Constitution of Pakistan which calls for the merger of FATA with the province of Khyber Pakhtunkhwa. On 25 May 2018, Twenty-fifth Amendment to the Constitution of Pakistan was passed with a majority in the Senate of Pakistan. On 27 May 2018, Thirty-first Amendment to the Constitution of Pakistan was passed with a majority in the Khyber Pakhtunkhwa Assembly and FATA become part of Khyber Pakhtunkhwa. 77. However, FATA Secretariat and its attached directorates and authorities is being merged with the respective departments in the province. Separate cells used to function in the line departments of the provincial secretariat to carry out activities in tribal areas before the creation of the FATA Secretariat. It was decided by the Govt. that the current staff will continue to perform their respective duties in the existing building (secretariat) to run the system in seven merged districts but they will report to the administrative heads in the provincial secretariat. FATA was merged with KP in the wake of 25th Constitutional

13 Negotiated rated with the affected Person or tribe. 14 The assessment of compensation rates for affected Land or other Properties are done by the Political Agents for 7 Tribal Agencies and Deputy Commissioners of adjoining settled districts for 6 Frontier Regions through line government departments. P a g e | 31

Amendment last May. The provincial health department has already taken over the Directorate of Health FATA after the issuance of a notification in this regard in first week of September 2018. Other departments, including education, have yet to take over the relevant attached departments and directorates currently running affairs in the defunct FATA. Additional chief secretary of FATA, who was the principal accounting officer and administrative head of the erstwhile FATA, was being abolished and the KP ACS would take over all affairs in near future. 78. Torkham was under FATA administration, however, as mentioned Government of Pakistan announced the FATA would be transferred to Government administrated under Settled Areas and the process of transfer is still on-going. 3.7. LAND MANAGEMENT IN FATA 79. In tribal areas, land (zmaka or zamin) is regarded as the most important asset, one that may be a primary source of conflict. Who controls land has power over those who use it. Most importantly, land is a fundamental marker of the identity of an individual and of his membership status into a clan. Symbolically, land embeds the link one individual has with his ancestors who inhabited and used that land before. If someone sells land, others will say that he lost his honor as he sold his father and grandfather’s bones. 80. FATA is mostly hilly terrain with very limited availability of cultivable flat terrain. The land management and administration laws are not extended to FATA. Hence, no land settlement records are consolidated. Except limited settlement of land within the urban perimeters, land in entire FATA is regarded as unsettled tribal land. 81. Generally, within the tribal system, each clan is associated with a specific territory held by the clan members as a communal asset. Traditionally clan territory could be used in terms of usufruct by extended households within the clan under the supervision of lineage and sub-lineage elders and with the understanding that if the use of the land was terminated the plots were returned to the clan domain. Today under the pressure of modern commercial interests, the right of usufruct has been slowly transforming into a more permanent right. Currently plots that have been parceled out for use (residential, agricultural, commercial) are often considered as a property that will remain with the extended family and will be passed in inheritance to the next generations and possibly re-subdivided between the heirs. At times, even, this type of quasi-private land may be sold to outsiders though this is not considered as an honorable practice. 3.8. PROJECT LOCATION WITH AFFECTED PEOPLE 82. The Project site Torkham is located at Pakistan Afghan Border in territorial jurisdiction of Landi Kotal sub division of Khyber Agency which borders of Afghanistan to the north- west, Orakzai Agency to the south, Kurram Agency to west, Peshawar to the east and Mohmand Agency to the north-east. Khyber Agency has three sub divisions including , Bara and Landi Kotal. The Pushtun tribes that dwell in the Khyber Agency include, Afridi, Orakzai, Mulagori, Figure 3.3: Khyber Agency map with Location of and Shinwari. The Khyber Torkham P a g e | 32

Agency has its headquarters at Peshawar where the PA sits. A camp office/residence of PA is at Landi Kotal. 83. Landi-Kotal city and cantonment is nearly 7-8 km from border crossing point where the Assistant PA has his headquarters. The Assistant PA assisted by tehsildars, khasdar force & administrative staff is over all responsible for administration in the Landi Kotal sub- division of Khyber Agency. The Administration is run through the maliks as per provisions laid down in FCR applicable in FATA region. The administrative setup for Khyber Agency is detailed in figure below.

84. Figure 3.4(a): Leadership and Administrative Structure

3.8.1. Social Structure and Settlement in Project Area 85. The project area in is inhabited by the Shinwari tribe of Pushtun origin which has a spread on both sides of the Pak-Afghan Border at Torkham Border crossing point as well as it has its presence near Hangu District in Settled area of Khyber Pakhtunkhwa. The affected community is Khuga Khel Clan of Shinwari tribe which occupies the project area as their communal land. Followed by the Pushtun social structures, among the APs, kinship provides the basic regulating mechanism for social action. Among the affected clan each person relates to others based on modalities determined by the degree of blood proximity to common ancestors. Based on this principle those related through paternal kin should stand together against those who are not relatives. 86. Conventionally, in rural settlements, the Pushtun tribal people live in strong and well- fortified compounds, built at respectable distances from each other as well as the common routes/roads. The structures are built as one fort-like compound that includes 10 to 15 one- room dwellings used as common quarters or as sleeping quarters of single nuclear family. As the project site is located along the prominent road and near Torkham border crossing point hence no settlement other than the Torkham itself is identified. However, the 3 identified residential structures are located separately at fair distance from each other on the communal land required for project. 87. Within the ambit of social structure of APs, the basic residential/economic unit is the patrilocal extended family. Typically, this unit includes an elder’s household and his married sons’ households. Upon marriage daughters leave the family and are absorbed into their P a g e | 33 husband’s family. Married sons instead generally live in their father’s compound, with this latter or the eldest brother exercising authority over the extended family. It is within this social unit that individuals find the basic solidarity group for security and mutual support. 88. As of Pushtun culture, the household structure is joint or extended family headed by a family elder, usually the oldest male who makes decisions on economic and social matters on behalf of the entire family. All family members, male and female are obliged to follow the decisions made by the eldest male member. Due to its location on the border crossing point which is the link and famous trade route between Central Asia and Indian Sub-continent the economy of the local community is mainly linked to transportation and trade business. 3.8.2. Land Ownership Status in Project Area 89. All the land in and around the project sites is communal/tribal land occupied by the Khuga Khel clan of Shinwari tribe which has three lineages namely Ashraf Khel, Basi Khel and Fatimi Khel. 90. As per Land management system and records which describing shares of each clan, sub clan or family members are neither maintained nor available in the FATA. Land resource is considered as joint property of the clan (in case of communal land) such as in this project. The tribal elder (Malik of clan or lineages) is responsible for equitable distribution of resources owned. In this project there is only communal land is being affected. Therefore, compensation of communal land will be paid to the elders representing the tribal community as a whole and then distributed down by them in accordance to the distribution formula used by the three lineages of Khuga Khel Clan of Shinwari tribe. 91. Generally, within the tribal system, each clan is associated with a specific territory held by the clan members as a communal asset. Traditionally clan territory could be used in terms of usufruct by extended households within the clan under the supervision of lineage and sub-lineage elders and with the understanding that if the use of the land was terminated the plots were returned to the clan domain. A very important aspect of this right was the system of taqsim or the division of the land tracts among the tribes, their clans and subsections originally made by the tribal chiefs while further subdivisions of land were effected by various clans or subsections of tribes (Khel) themselves.

Figure 3.4 (b): Tribal Land Ownership Distribution in the Proposed Project Area

3.9. CONCLUSION P a g e | 34

92. Above discussion reflect that: the Pushtun dominated area in Pakistan was divided into settled area (now Khyber Pakhtunkhwa) and tribal area (now FATA) more or less for administrative purpose during British regime in India; since after creation of Pakistan in 1947, it has semi-autonomous status and is being governed directly by the federal government under executive authority of the President as per accession agreement signed by the tribal elders; and by virtue, the FATA is an administrative unit of Pakistan with its peculiar administrative framework fitting to its local requirements as other administrative units (provinces) have their own as per their requirements. 93. The entire population of the FATA is Muslim Pashtuns and are not ethnic minority or tribal people living in a state of isolation; rather they are invariably embedded in the broader Pakistani reality in general and particularly have inter-clan linkages with the Pashtuns living in adjoining settled areas of Khyber Pakhtunkhwa and Baluchistan Provinces; and are fully embedded in the socio-cultural fabric of the Pushtun community living all around Pakistan. The people from FATA keep moving in and out to access better civic amenities available in the urban centers of settled area of adjoining Khyber Pakhtunkhwa and other metropolitan cities of Pakistan. When in settled are, they adhere to legal and administrative system applicable there and when back in FATA they follow local system and their tribal customs. Flux of Pushtun migration towards mega urban centers and their adoptability and webbing in main stream socio-economic reality is evident from the Pushtun population living in Karachi. 94. The project site (Torkham Border crossing point) is in Khyber Agency of FATA and the APs represent mainstream Pushtun population of the region including Khyber Agency, FATA and KP Province. They neither are ethnic minority belonging to a distinct group possessing separate cultural, customary, economic, social or political institutions that are different from mainstream population in Khyber Agency or FATA nor are they isolated tribes living in a state of pristine isolation. Therefore, it is construed that execution of the project for improved border services will not trigger the indigenous peoples safeguards under ADB’s SPS 2009. B. SOCIO-ECONOMIC PROFILE OF PROJECT AFFECTEDPERSONS 95. This section provides the baseline information relating to the socioeconomic assessment of the APs and project area. Information has been obtained from the available published sources, field surveys in the project area, consultations with the stakeholders; and through visits to the government departments and other agencies. The socio-economic baseline information will provide a basis for monitoring and identify impacts during implementation of the LARP. 3.10. DATA COLLECTION METHODOLOGY 96. The LARP has been updating by collecting the data/information from the real field settings. Data/information were collected from primary and secondary sources. During the secondary data collection process, official government documents (such as the District Population Census 1998, Board of revenue records), socio-economic research reports by well-known research organization/experts (such as Social Policy Development Center) and international experiences of LARP were consulted. For primary data collection, different types of field surveys and consultation sessions were held. The respondents belong to all types including affected families, passengers, community leaders, key influential persons, and farmers. The following surveys were conducted.

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. Household census survey to document the APs, their assets, family profiles and economic status. . Socioeconomic survey to develop an overall baseline profile of the people of the area in respect of their socioeconomic behaviors’, living standards, vulnerability and attitudes towards the developmental activity to be carried out in the area.

Plate 12: Social Survey in being carried out in Plate 13: Social Survey in being carried out the project area in the project area

97. Social survey was conducted based on the latest available design shared by the Design Consultant NLC in December 2017 using a mix of qualitative and quantitative tools to determine the likely impacts on the affected people. It considers the views and preferences of APs and other stakeholders to improve the design of the project and establish a participatory process for project implementation and monitoring. Concerted efforts were made to include the gender issues and to integrate gender aspects into the project design and social assessment process for collecting dis-aggregated sex data. The key objective of the social impact Assessment was to prepare an inventory of all affected assets including land, buildings and crops and compile a list of all affected families and people, land assessment and assessment of other losses resulting from land acquisition and resettlement, taking into accounts the social, cultural, and economic impacts on AP by the project. 3.11. CENSUS OF APs AND THEIR ASSETS 98. APs include mainly the residents, business operators, shop keepers and owners of assets/structures located within the impacted area. A complete census of the APs was carried out by using a pre–structured questionnaire. The census aimed at to register and document the number and status of APs likely to be physically displaced or affected by the project and, therefore, entitled to compensation.

99. A structured questionnaire was administered to collect quantitative and qualitative information on APs. The following information was collected during the survey:

 Demographic and socioeconomic characteristics of the APs.  Family structure and number of family members  Literacy levels  Occupation type and income levels  Impacts on assets due to the project by type and degree of loss.

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 Impact on community resources  Perceptions on the resettlement and rehabilitation measures  Perceived income restoration measures  Project related Awareness and knowledge  Perceived benefits and loss due to project 98. The findings of the survey have been analyzed and presented in the succeeding section. It also provided a baseline assessment of potential impacts on affected households and formed the basis for estimating the entitlement-based resettlement budget. 99. Compensation eligibility will be limited by a cut-off date which could either be the start or completion date of census of impacts. For preparation of this LARP socioeconomic baseline survey and census survey of APs (including titled and squatters) was completed in January and accordingly the cut-off date is 26 January 2018. Any person who occupies the project area after the cut-off-date will not be eligible for compensation. However, he will be given 30 days to remove his belongings from the project area. The cut-off date was disclosed during consultation. After approval of LARP the cut of date will be publicized along with LARP disclosure. 3.12. SOCIO–ECONOMIC BASELINE SURVEY 100. The objective of this task was to provide a detailed socio-economic profile of the project affected population. The information gathered on: (i) demography and settlement pattern; (ii) social organization; (iii) resource economics and livelihood patterns; (iv) land ownership; (v) customary practices, (vi) governance and administrative system (vii) leadership and power structure (viii) availability of social services in project areas; (ix) specific impacts on the poor, indigenous people, women and other vulnerable groups. 101. As per ADB Policy requirements, a detailed socio-economic survey was carried out to develop a general socioeconomic baseline of the affected population. As displaced households were limited in number so efforts were made to conduct detailed socio-economic analysis of 100% APs. Socio-economic surveys were carried out from 9 to 11 and 26 January 2018. A total of 51 respondents were interviewed for data collection. A pre-structured questionnaire was used for data collection. 3.13. RESULTS OF THE SOCIOECONOMIC BASELINE SURVEY 102. Administratively, the project area is in Tehsil Landi Kotal in Khyber Agency. Based on the 2017 population census for the city of Landi Kotal, population density of the area is 361.6/ km2 and growth rate is 3.42%. Official demographic statistics for the city of Landi Kotal are shared below: . Total Population (census 2017) 274,409 . Cantonment Area 1.5 km . Average Annual growth rate 3.42% . Rural 240,712 . Urban 33,697 103. Respondents. From 9to 11and 26 to 27 January 2018, a 100% census of APs was conducted in Torkham. The respondents were representatives of household heads of affected residential structures, affected shops/hotels owners/tenants, owners/tenants of P a g e | 37 affected large commercial units (petrol pump, weigh stations). The dominant tribe in the area, Shinwari is culturally patriarchal. Not only are the elder male members of the households considered the heads of a joint family, but they are also responsible for managing all the external affairs of the house. They are expected to articulate the needs and concerns of the households and women serve as substitutes when male household heads are not available. 104. Family Type. As per social survey more than 94% of the respondents are living in joint family systems. A joint family is an extended family arrangement consisting of many generations living in the same home. All the male and women members are bound by the common family relationship rather than by property. The family is headed by a patriarch, usually the oldest male who makes decisions on economic and social matters on behalf of the entire family. All family members, male and female are obliged to follow the decisions made by the eldest male member. They rely and depend on their family members to get assistance and support in all aspects in times of crisis. Usually, in a joint family the income of all earning members is pooled to meet the needs of the joint family. On the other hand, a nuclear or elementary family is a family system consisting of a pair of adults, generally the mother and the father and their children. (Table 3.1). Table 3.1. Respondents’ Family Type/Structure

Sr. No. Family Type No. Percentage

1 Joint 48 94.1

2 Nuclear 3 5.9

Total 51 100.0

105. It is within an extended family that the primary solidarities for daily economic activities and for the solution of practical matters are found. Within the walls of a compound house, under the authority of a senior elder (either the father or a senior brother) sets of brothers and their households exchange labor, productive implements and provide each other credit to cope with everyday needs. Within the extended household, rights over cultivated land and buildings are left in the hands of the elder member. Other assets such as furniture, cooking utensils, fuel, cultivated crops and animals may be owned independently by each household or may be fully shared as common property among them as it happens in the case of joint- families. In this case all family members pool their incomes and share collectively their expenses on food, clothing, education, health, birth, marriages and funerals. 106. Family Gender Composition. The population of Khyber Agency, according to the provisional results of the 2017 national census is 986,973. The population of the agency, according to the 1998 census is 546,730 (male 284602, female 262128). The sex ratio 109, annual growth 3.92 % and population density 212 per km2 with an average household size of 9.9 per household reported is reported. The household surveys indicated that household size is 25 persons. Based on the social survey, the gender-wise distribution of the 51 respondents’ families are given in the Table below.

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Table3.2: Gender and Age Distribution of the APs

Male Female Total Sr. No Age Group (Years) No. Percentage No. Percentage No. Percentage

1 0-4 111 16.5 123 20.3 234 18.3

2 5-9 110 16.4 123 20.3 233 18.2

3 10-19 118 17.6 96 15.9 214 16.8

4 20-39 146 21.7 143 23.6 289 22.6

5 40-55 93 13.8 84 13.9 177 13.9

6 56 and above 94 14.0 36 6.0 130 10.2

Total 672 100 605 100 1277 100.0

107. Based on the social survey, the maximum population falls in the age group between 20 and 39 years and it is this group that are responsible for most daily life routine activities. 108. The sex ratio is an important demographic indicator, which is defined as the “number of males per hundred females”. The sex ratio for the district computed in 1998 is 109 males per 100 females. The sex ratio based on the household was about 111 males per 100 females. The sex ratio depends on the factors such as the sex ratio at birth, differential mortality rates between the sexes at different ages, and losses and gains through migration. In this tribal area, sons are preferred because (i) they have a higher wage-earning capacity, (ii) they continue the family line; and (iii) they are generally recipients of inheritance. 109. Migration in the AOI: Migration, especially internal migration in Pakistan, is an old phenomenon. It not only provides opportunities for employment but also improves the socio- economic conditions of migrant households. Lack of employment opportunities coupled with inadequate income from farming are considered the leading cause of migration. Similar is the case with the population residing in the proposed project area and they migrate to other areas.

110. During the field visit to Torkham, locals informed that people in the area migrate to other places due to lack of jobs and business opportunities. In majority of the cases, male members usually migrate to other cities for the livelihood purpose such as Peshawar and Karachi. Karachi is an industrial city and has lot of job opportunities. Being the metropolitan city, there are many educational institutions in Karachi which also attracts migrants.

111. Due to border management with Afghanistan and fencing of the wire in the border area as well as in Torkham main bazar, lot of the local businesses have closed out. As per locals, before the border management and fencing of the wall, there are lots of business opportunities due to free movement from both sides of the border. Now, business opportunities have been reduced. Therefore, affected family members have migrated to other areas of the country to look for other sources of income. Respondents told that if a person moves to another city, he prefers to retain his ties with his native village and his rights are still acknowledged even after his departure. Typically, the migrant sends part of his P a g e | 39 earnings to the family remaining in villages. More than 98% of migrants’ families are living in the native villages. The decision to migrate and bring wife and children to other cities has always been a difficult decision due to local tribal culture and joint family system.

112. Marriage and Marital Status: Endogamy is the prevalent style of marriage. Most of the people are monogamous as second marriage is expensive due to local culture. Mothers have very little role in decision-making about marriages of their sons and daughters. Neither the groom nor the bride is allowed to choose his or her life partner in rural areas. The decision of the parents is considered final; however, sometimes the bridegroom is consulted before the final decision. As per social survey, majority of respondents (i.e. 84.3%) are married and only 8% are unmarried.

Table 3.3: Marital Status of the Respondents

Sr. No. Marital Status Frequency Percent

1 Single 8 15.7

2 Married 43 84.3

Total 51 100

113. Educational levels. Entries to education in Khyber Agency normally starts from primary level and children of age five years and above are entitled to be formally enrolled. Educational level of the respondents is shown in figure 3.5. The majority (i.e. 70.6%) are illiterate while 19.6% have primary education. The percentage of intermediates, graduates and post graduates is very low compared to those who have done middle and matric. Figure 3.5: Education Level of the Respondents

2.0%

7.8%

19.6%

70.6%

114. Through indirect gender survey with the locals, the literacy rate for male and female is computed to be high as compare to female education level. Data shows an alarming situation of overall literacy conditions and most importantly female education. The lowest literately among females is partly due to lack of girls’ schools in the project area. 115. Occupation. Types of occupation of the respondents in the project area are shown in Figure 3.6. The occupational level of the respondents is like a social pyramid. At the base is composed of small shopkeepers/businessmen (grocery shops, hotels, tea stalls, tyre repairing shops) (74.5%); followed by daily wages labour and private service 9.8% each; and

P a g e | 40 at the apex is shared by big businessmen. Overall, respondents are engaged in some sort of business linked to the border activities. Figure 3.6: Occupations/Employment Status of the APs

5.9% 9.8%

9.8% 52.9% 21.6%

Shopkeepers Hotel Private Service Business Labour

116. Languages Spoken: Pushto is the predominant language being spoken in the project area while is a second language which is spoken or understood at a limited level. 117. Monthly income. Income is an indicator for assessing the livelihood/well-being of the household. The highest percentage income group 29.4% has monthly income of Rs. 10,001- 30,000, followed by group (25.5%) having an income of Rs. 18,001-30,000. Only three respondents earn more than Rs. 60,000 per month (Table 3.3). 118. Majority of the respondents reported an average monthly income of less than 30,000 rupees. This is equivalent to USD273 month or a daily income of USD(based on exchange rate of USD=1:110 Pakistan rupees in March 2018). Table 3.4: Income Level of the Respondents from primary Sources

Income from Primary Frequency Percent Sr. No. Sources (in PKR)

1 Upto 10,000 8 15.7

2 10,001-18,000 15 29.4

3 18,001-30,000 13 25.5

4 31,001-45,000 7 13.7

5 45,001-60,000 5 9.8

6 60,001 and above 3 5.9

Total 51 100.0

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Table 3.5: Secondary Sources of Income of the APs’ Household

Income from Sr. Secondary Sources Frequency Percent No. (in PKR)

1 Up to 30,000 5 9.8

2 30,001-50,000 4 7.8

3 50,001-75,000 27 52.9

4 51,001-75,000 14 27.5

5 100,001 and above 1 2.0

Total 51 100

118. Secondary sources of income means contribution of income from other sources in household income. APs are living in jointly family system and as per social survey average family size is about 25 persons. Every family have estimated 7 adult members from the age group 10 to till 56 and its means average household have about 4 to 5 earning members including AP. Above table 3.5 shows secondary source of the income of the APs. As per above tables 3.4 and 3.5 average minimum per month income of the household is Rs. 40,000 i.e. more than Gov’t. minimum wage Rs.15,000. APs also receive certain amount from the lease of land i.e. Rs. 20 million with the increase of 5 % annual and Rs. 600 per commercial, this approximate amount is about Rs. 36 million annually. It means every AP receives monthly income more than Gov’t minimum wage. Therefore, they do not fall under the poverty line. Contribution of the affected business in the total household income is more than 10%. 119. Family Expenditure: The monthly expenditure and pattern of expenditure provides an indication for assessing standard of living of a household. The expenditure on food items include cereals, pluses, flour, sugar, cooking oil/ghee, milk etc., while the non-food items consisting of expenditure on education, medical treatment and clothing. Overall, the average annual household expenditure on food is calculated to be 68% followed by medical expenses 22% and clothing 10%. The expenditure on food items are almost double as compared to non-food expenditure estimated in the project area. The important staple food is wheat, rice and maize supplemented with purchased other commodities such as meat, sugar, vegetables and fruits. 120. Table 3.6 shows average monthly expenditure for different income groups. The highest percentage of expenditure i.e. 43% is the groups which spend Rs. 10,000to 1 8,000. The lowest group in the category spends more than Rs. 60001 per month. While few respondents whose expenditures are more than their income, manage their livelihood from their weekly income. They are mostly laborers who take loan for grocery from shopkeeper.

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Table 3.6: Average Monthly Expenditure

Sr. No. Expenditure Frequency Percent

1 Up to 10000 5 9.8

2 10001-18000 22 43.1

3 18001-30000 10 19.6

4 31001-45000 5 9.8

5 45001-60000 5 9.8

6 60001 and above 4 7.8

Total 51 100

121. Credit Loans: Table 3.7, shows that significant majority i.e. 94.1% of respondents did not borrow money during the fiscal year 2016-2017. While only 5.9% borrowed money during that time. Table3.7: Amount Borrowed

Last Year Borrow Sr. No. Number Percentage Money

1 No 48 94.1

2 Yes 3 5.9

Total 43 100.0

122. Generally, credit is obtained to supplement the income to meet the routine and some extra expenditure of the household including investment, social needs and other unforeseen situations such as illness (medical care), marriage, education, and livestock. 123. Purpose of Money Borrowed: The money borrowed by the residents was mainly used for marriage, health, business, and children education. Most respondent’s borrowed money from their relatives and so do not have to pay any interest. 124. Ownership of Consumer Durables: Obtaining income information from individuals and households is a difficult task as many people are reluctant to disclose and often under report. Using proxy indicators such as household assets provides a realist picture of the household well-being. Figure 3.7 shows that 41% APs owns refrigerator, washing machine (35.6%), computer (18.3%) and TV (70.4%). Most of them were reported as used items locally available in the Torkham, Landi Kotal and Bara market. Ownership of automobile is very low. Only 15.5% families own car or van or truck. Most of these families give these vehicles on rent to augment family income. TV has replaced the radio for entertainment and it is available among some of the low-income families too. Few households own luxury items such as power generator and other electrical appliances. Details are given below figure 3.7.

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Figure 3.7: Ownership of Consumer Durable

92%

70.4% 65.7% 63.2%

41% 43.3% 37.2% 35.6% 25.3% 18.3% 15.5% 15.2%

125. Livestock Assets. In tribal rural set-up, livestock ownership is also another proxy indicator for assessing of living standard/ family well-being. Out of the 51 respondents, 30 have livestock of the following categories. As per social survey 59% of the respondents have own certain livestock of different types and only remaining 41% do not have. For those that have livestock, sheep/goats (76.7%), chicken (83.3%); and cows (26.7%) are the more prevalent ones. (Table 3.8). Table 3.8: Livestock Assets of APs/Households

Livestock Response No. Percentage

Yes 8 26.7 Cows No 22 73.3

Yes 23 76.7 Sheep/Goat No 7 23.3

Yes 25 83.3 Chicks No 5 16.7

126. Land ownership. Seventy five percent (84%) of the respondents are living on their own land. Only 16% do not have lands and they are living on the communal or state land. (Table 3.9). Table 3.9: Ownership Status of Lands Used as Residence

Sr. No. Status No. Percentage

1 Yes 44 84

2 No 7 16

Total 51 100

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127. Dwellings: Houses of all the tribesmen are shaped like fortresses having towers and are mostly situated on commanding sites on the hills. Each family in the tribal areas has its own separate dwelling with its size being proportionate to the members of the household, their cattle and flocks. The Afridi are generally dokora (having two dwelling places) amongst the Khyber tribes as in summer they live high in the hills, while in winter they come down along with their families and flocks to the plains to spend the winter. However, this is not the case for the DHs which have been staying in the project area for several years. 128. Stone and mud are used as building material for walls while wood is used for doors, windows, and ceilings. Main gate of the house is used for entrance while a small side door in the wall is allocated for use by women. A vast courtyard with rooms depending on the social status of the guests and male members of the family is also to be found; a mosque is also made available. 129. Housing characteristics is one of the major indicators for the assessment of the living standard of the population. Most of the houses are owned by one influential resident of house who is male. However, some joint ownership also exists. Majority of the houses have ordinary construction, with moderate standard buildings made of cement and bricks.

130. Approximately 17.6% houses are pacca (made from brick, stone, and mortar), 68.6% are semi-pacca (made of clay, inferior bricks and plastered with mortar) and remaining 13.7% Katcha (made from mud bricks and bushes). Types of housing structures in the area are given in Figure 3.8) Figure 3.8: Housing Conditions

17.6%

13.7%

68.6%

Pucca Katcha Semi Pucca

Constructed using a combination of pacca (strong, high-quality) and katcha (inferior) materials. 2Pucca housing refers to dwellings that are designed to be solid and permanent, built of substantial material such as stone, brick, cement, concrete, or timber. 131. Sources of Drinking Water and Treatment Used. Generally, the source of drinking water by respondents is i) hand pump, 80.4%; and ii) piped water, 7.8%. The others fetch from water vendors and/or tankers; homemade boiling; and from private and nullah. Seventy nine percent (79%) of them do not treat the water they drink.

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Table 3.10: Source of Drinking Water

Sr.No. Drinking Water Frequency Percent

1 Public 4 7.8

2 Private 41 80.4

3 Other 6 11.8

Total 51 100

132. Sources of Power and Fuel. More than 90% respondents have the electricity while remaining have no any type of power facility. Main source of fuel is firewood and LPG gas cylinder. Respondents about 30% used Gas cylinder while remaining used wood as a source of fuel. 133. Toilet Facilities. The type of the toilet used by the household indicates living conditions and is strongly related to the health and hygiene of the household members. Most of the people (74.5%) have flush type of latrine while 25.5% is using open types such as barren land. Table 3.11: Source of Drinking Water

Sr. No. Toilet Facility Frequency Percent

1 Flush 38 74.5

2 Opened 13 25.5

Total 51 100

134. Garbage Status and Disposal System. Ninety two percent (86.3%) of the respondents see garbage disposal as a problem in the community. This is because there is no garbage collection in the community (13.7%). (Tables 3.12) Table 3.12: Status of Garbage Disposal

Sr. No. Description No. Percentage

1 Yes 44 86.3

2 No 7 13.7

Total 51 100.0

135. Educational Facilities Used by Boys and Girls. As per social survey, out of the 228 boys at the age group of 5-19 years the boys go to i) private schools (28.9%); ii) government schools (23.7%); iii) religious institutes (13.6%); iv) vocational institutes (6.6%) and 17% do not go to any mentioned institutions. This means that the boys in a family may go to any of these entities. On the other hand, the female in the family go to i) private schools (26%); ii) religious institutes (3.7%); and iii) government schools (20.5%).37% of the girls do not go to schools. (Figure 3.9).

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Figure 3.9: Educational Facilities used by Boys

Series1, , 17.1

Series1, , 6.6

Series1, , 13.6

Series1, , 23.7

Series1, , 10.1

Series1, , 28.9

Table 3.10: Educational Facilities used by Girls

37.0%

8.2%

3.7%

20.5%

4.6%

26.0%

136. Based on the field survey of Torkham and discussion with the locals, it is noted that female literacy rate is much lower compared to males. Locals give least importance to female education. Few reasons of low literacy rate among women are discussed below:  Lack of Female education institutions and local culture do not importance female education;  The major cause of women illiteracy is increase in population, which is playing a negative role in this deprivation of female education. A family having more children and less income will prefer to educate the boys of the family, while the girls will be given embroidery or sewing skills;  There is also a common thinking that females should manage home after marriage whereas males have to earn for livelihood, so education matters only for males and not for females;  Some families do not like their daughters to study in co-education institutes thus depriving them of higher education;  The social setup is male-dominated and girls restricted to homes and cannot go out freely thus any male of the family has to take responsibility for grocery purchasing etc. This sometimes seems difficult to them. There is also a sharp division between P a g e | 47

female oriented work and male oriented work. Females are not allowed to work in all sectors therefore their education is not considered valuable; and  The number of schools and colleges for females are few in the Torkham and Landi Kotal area. Girls travel a long distance to reach the schools. For this reason, most parents prefer to give them religious education. 137. Health Facilities Used: Health facilities are generally inadequate in the Torkham. People tend to get treatment from indigenous healers, due to the lack of suitable and sufficient health facilities. Bad sanitary conditions, insufficient medical facilities and meager parental care, all contribute to the prevalence of ill health and high rate of mortality in the area. The health facility in Torkham is not in good condition. One small government hospital is functioning but is in poor condition. There is only one doctor working during the day time. Due to lack of staff and inadequate space it is overloaded and unable to accommodate the population. Most of the time this hospital lacks medicine. Locals have to travel long distances to reach health facilities in Landi Kotal and Peshawar. The situation is even worst for women in need of maternity facilities. Majority of respondents informed that for childbirth cases, people have to move to Landi Kotal and sometime Peshawar due to lack of proper maternity facilities in the local hospital. In the AOI, private clinics exist which are run by dispensers with limited services. 138. In Landi Kotal, one government hospital exists which is better than Torkham but also lacks staff and medicine. Therefore, locals move Peshawar in case of serious cases. 139. The respondents use two major health facilities: private dispensaries/clinics (71%) and government dispensaries. (Table 3.13) Table 3.13: Health facilities used

Sr. No. Health Facilities Used Frequency Percent

1 Private Dispensaries/Clinics 30 58.8

2 Govt. dispensaries/hospital 13 25.5

3 Homeopathic/Hakeem 8 15.7

Total 51 100

Vulnerable Persons in the Family 140. Of the 51 respondents, only 8% (4) have vulnerable (physically or mentally disabled) members in their family. Vulnerable household members include children and adults in 4 affected households. Of disabled household members (children and adults) 3are physically disabled while 1ismentally disabled. All the disabled are males (Table 3.14). Table 3.14. Vulnerable Persons in the Family

Sr. No. Vulnerable Family Members Frequency Percent

1 Physically Disable 3 75.0

2 Mentally Disable 1 25.0

Total 4 100.0

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141. During the social survey there were no single women headed household and household headed by an elderly person identified. 142. Culture: The Jirga system and the malik system are strong and powerful local institutions for the reconciliation and resolution of local disputes and to punish those who violate the local rules and customs. A malik has his own status in his tribe. The PA gives him some amount as Mojib (allowance) periodically, to run his local hospitality expenses. The local people respect maliks as they possess good quality and quantity of weapons and male members using these weapons. 143. Dress: The local tribesmen of Torkham wear their traditional clothes, which includes a large turban and a rifle on the shoulders. The women-folk generally use printed clothing and observe strict purdah from outsiders by wearing a burqa/niqab when they go outdoors. Their working and festival dresses are all the same with the exception that they wear new dresses on festivals, like Eid and marriage ceremonies or when visiting relatives outside the village. In the winter season, the males wear a woolen shawl over their normal clothing, while the female dress remains the same. Tribal women are very fond of wearing ornaments and jewelry of all types, made of gold and silver. A lot of money is spent on local ceremonies, particularly on marriages, funerals, birth and other ceremonies/festivals like the celebration of Eid and performing Haj. 144. Sports: People of Project area are fond of games and sports, which are essential for healthy living and positive growth of the youths. There are a variety of local games and sports played commonly all over the region, both indoors and outdoors. These include; hunting, shooting, wrestling, swimming and local children’s games, dog/cock/bird fights and many other games. Despite the sports enthusiasm of its people, the region generally lacks sports facilities. 145. Favorite Food: Meat is an important part of their diet, which they often eat in the form of kabab (minced meat fried in oil), lamb , chicken curry or goat curry. The hotels in Peshawar Namak Mandi Bazar represent the traditional food of Afridi, especially lamb Karachi. In vegetarian cuisine, traditional Indian Ingredients such as bindi (okra), rajma (kidney beans), dal (lentils) and sag (spinach) are notably eaten. 146. Family System: Due to triable culture joint family system is the dominant culture in the Project area of the Khuga Khel tribe. It was observed that the family structure in the area was very strong and members played a pivot role in solving their social and cultural problems. 147. Most of the families are living in joint family system comprising grandparents, uncles, aunties and lot of cousins, whereas only a small percentage of families are living as a single family (nuclear family system). Although the joint family system is generally undergoing a radical change, with a greater influence of media and education, people of the Torkham area do not feel good about this change. Because while living in a joint family system a lot of emotional attachments are enhanced and they feel that by separating in nuclear family system, their relationships will be damaged and family ties will be weakened. As per the locals, joint family system is basically a form of organization. In this organization there are defined norms and values to be followed strictly by all the members. All the members have their defined tasks and responsibilities to perform. There is equal share of each and every member of the family in the available resources in the form of money, food and other requirements and locals feels better in joint family system as compare to nuclear family. During the discussion with the locals, it was clarified that large family size is also treated as

P a g e | 49 the strength of the family. Therefore, family size of the area is high as camper to other areas of Pakistan. 148. Decision-making Methods and Conflict Resolutions System: The methods for decision-making about social conflicts in the project area is “Jirga” (traditional assembly of leaders that make decisions by consensus). People prefer “Jirga” in the Project area compared to court or other legal system because this method is more effective. “Jirga” provide timely justice while other methods are complex and require time as well as money. The people have a tradition to help each other in the hour of need. Common conflicts arise from time to time which are solved by the community at the local level through Jirga. 149. Sanitation / Drainage Facilities and Solid Waste: The sanitation is very poor in the Project area. There is no sewerage system, and solid waste management. Standards of cleanliness are poor in both Torkham and Landi Kotal. Most of the solid waste was found to be dumped in heaps near the houses. 150. Gender Aspects: The emancipation of women is a campaign to give women equal rights and status with men. The emancipation of women (i.e., their liberation from economic and sexual oppression, their access to higher education and their escape from narrow gender roles) is not easily achieved due to the traditional setup. In this rural society, males dominate. Cultural tradition, social practices and low female literacy ratio have left women in a vulnerable position. Women are restricted to performing household work and are excluded from decision-making both on the domestic front and at the community level. Women’s access to education and health care is limited because such services are not available close to home in the Project area. Women take active part in agricultural activities, collect fuel wood and fetch water, in addition to household work and family duties, but their due status is not given by the society. 151. Women in the area are also vulnerable through economic, social and psychological poverty. Economic poverty is due to lack of assets and low endowment of human capital. Social poverty derives from the inability of the society to accept women’s equality and their economic, political and cultural rights, while psychological poverty is a product of the subjugation of women, under the dictates of customs and traditions, which deprives them even of control over their own lives. 152. In the rural set-up women are kept under-educated or uneducated. They are mainly dependent on male members of the family for economic reasons and cannot take decisions regarding their own lives. They have no say in family matters and are not asked about their preference for marriage. Yet for the paucity of rights, women play a vital part in the society through performing essential, albeit menial, tasks and supporting their families (e.g., collection of firewood from distant places, nurturing children, and cooking and cleaning for the family). 153. Information which was collected through secondary sources and group discussion with locals shows that major problems faced by women in the area are lack of primary health care and the lack of education opportunities. Other problems include laborious work such as woods collection for cooking and heating, working in agricultural fields. These tasks not only affect their health but also take up major portion of their time.

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SECTION 4

PUBLIC CONSULTATION, PARTICIPATION AND DISCLOSURE

4.1. GENERAL

154. In line with the twin aims of information dissemination and collection of stakeholders’ concerns, the development of LARP Torkham BCP involved a robust public consultation and information disclosure process. Consultation and participation play a central role in ADB’s SPS (2009). It emphasizes the importance of a well-informed consultation process with APs and communities for land acquisition and resettlement. Effective stakeholder consultation incorporates the principles of timely engagement, transparency, inclusiveness and meaningful participation. 155. The Project has promoted meaningful public and stakeholder’s consultations. It began early in the Project cycle such as; during the preparation of feasibility level and has been continued throughout the LARP preparation. Plans are in place for it to continue through the LARP finalization and implementation. The process has provided timely disclosure of relevant information to stakeholders through a Project brochure, with FGDs and face to face meetings to ensure it is fully understood. Particular attention has been paid to the AP’s in the process so that they are more comfortable with the process and feel accommodated. 156. During the consultations with the locals, the major categories participated in public consultation were local population, Jirga of Khuga Khel, Torkham businessmen, tenants and potential APs belonging to the proposed project. 157. The feedbacks and issues raised during the consultation were recorded and documented for developing the strategy. Consultations with government departments were mostly related to the proposed project, legal requirements, associated impacts, lessons learned during the implementation of previous projects, availability of requisite baseline information, specific legal requirements, information regarding any future development plans, coordination between the various concerned departments. Officially meetings and consultation with the APs were arranged by local administration. 158. Regardless of the technical soundness of a LARP, an ineffective consultation process can delay project delivery and risk not achieving project outcomes. On the other hand, when stakeholders are directly engaged from the outset of the project, stakeholders feel part and parcel of the process of project delivery. 159. This section covers the process and outcomes of the stakeholder consultation and information disclosure process. The findings of the stakeholder engagement started at the feasibility level and continues at implementation stage. 4.2. IDENTIFICATION OF PROJECT STAKEHOLDERS

160. The first step involved for the stakeholder consultation, is the identification of stakeholders. Identification of stakeholder is an important step which ensures that all stakeholders are identified and classified as per their role about the Project. The Torkham BCP project identified three major categories of stakeholders: (i) government institutions who are involved in the management of border activities at Torkham (ii) border communities that reside or have commercial interests in the border environs (iii) frequent users of the border facilities. These stakeholders have been identified in Table 4.1.

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Table 4.1 Stakeholders and Consultation Tools for Torkham BCP

Sr. Stakeholder Type Stakeholders Consultation Tools No. . FBR Border . Office of Political Agent, Landi Kotal . Consultative meetings 1 Managers . Assistant Political Agent, Landi Kotal . Scoping sessions . NLC . Jirga (communal land) . Focus Group Discussion Border 2 Communities . Local residential and Commercial APs . Semi-structured interviews . Truck Drivers . Semi-structured Border User 3 interviews Groups . Pedestrians . Passengers who Cross Border . Focus Group Discussion

4.3. OBJECTIVES OF STAKEHOLDER CONSULTATIONS 161. Stakeholders especially the local population involvement is an important feature of the LARP and can lead to better and more acceptable decision-making regarding Project design, construction and operation. Public involvement, undertaken in a positive manner and supported by a real desire to use the information gained to improve the Project design, will lead to better outcomes and lay the basis for on-going positive relationships between the stakeholders. 162. Consultations were conducted with all stakeholders using various social tools identified in Table 4.1. The main objectives of these consultations were to gather the views of the stakeholders regarding the proposed border improvement plans and identify measures to ensure minimizing project LAR issues to reduce project’s adverse impacts on the local community and the APs. These consultation objectives were shared at the outset of each meeting as outlined below: (i) To identify the positive and adverse impacts of improvements to Torkham Border Crossing on the community; (ii) To identify suggestions to mitigate the expected adverse impacts of the project; (iii) To identify concerns/suggestions of the community regarding environmental impacts of the project and mitigation measures; (iv) Ensure participation of stakeholders in the whole process of the preparation and implementation of the LARP; (v) Determine APs preferences for the type and delivery of compensation; (vi) Minimize APs apprehensions and ensure transparency in LARP activities. (vii) Informing the stakeholders about what is proposed; (viii) Providing an opportunity for those otherwise unrepresented to present their views and apprehensions therefore, allowing more sensitive consideration of mitigation measures and trade-offs; (ix) Providing those involved with the planning of the Project with an opportunity to ensure that the benefits of the Project are maximized and that no major impacts have been overlooked; (x) Providing an opportunity for the public to influence the Project design in a positive manner (participatory development); (xi) Increasing public confidence in the proponent, reviewers and decision makers; (xii) Providing better transparency and accountability in decision making;

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(xiii) Reducing conflict through the early identification of contentious issues and working through these to find acceptable solutions; (xiv) Creating a sense of ownership of the proposal in the minds of the stakeholders. (xv) More tangible benefits flow from public involvement as participants see that their ideas can help to improve this Project. People gain confidence and self-esteem through their involvement in the process and perceptions are expanded by meeting and exchanging views with people, who have different values and ideas; and (xvi) Achieve sustainable development. 163. Focus Group Discussions were held with representatives of local communities, APs, affected shop owners and businesses that will face impacts due to land acquisition for Torkham BCP. These stakeholder consultations for Torkham BCP were held in January 2018 as illustrated in Table 4.2. List of the APs who participated in the FGDs is attached as annex III. Table 4.2: Stakeholder Consultations Conducted for Torkham BCP Sr. No. of Stakeholder Tools Date Venue No. Participants

Assistant Political Agent, Consultative Office of APA, 1 09-01-18 5 Khyber Agency Meeting Landi Kotal

Political Tehsildar, Khyber Consultative Office of APA, 2 10-01-18 Agency Meeting 18 Landi Kotal Office of Consultative 3 Tehsildar, Administration 10-01-18 5 Tehsildar, Meeting Torkham Office of Focus Group 4 APs: Local Businesses 10-01-18 10 Tehsildar, Discussion Torkham APs: Landowners Focus Group Office of APA, 5 11-01-18 (Communal Land) Discussion 18 Landi Kotal Semi- Trade 09-01-18 to 6 Truck Drivers structured- 14 Terminal, 011-01-18 interviews Torkham Semi- Passenger 09-01-18 to 7 Pedestrians structured 18 Terminal, 011-01-18 interviews Torkham

4.4. INFORMATION DISSEMINATED 164. During the consultation meetings with communities including APs and Jirga, the following information was disclosed: . Scope of the Torkham BCP project and its various components such as import export terminal, passenger terminal and access road etc.; . The stakeholders involved and their roles and responsibilities; . The process of land acquisition and calculation of compensation; . Description of the entitlement matrix to be developed for APs; . The importance of GRM and the role of the community in GRM; . Overview of land acquisition and resettlement related impacts on communities; and . Concerns and suggestions of the APs regarding the projects’ impacts on their assets and livelihoods.

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4.5. OUTCOMES OF FGD WITH APs, LOCAL RESIDENTS AND BUSINESSES Sr. Comments Responses Responsibility No. 1 Representatives overwhelmingly Noted down No action welcomed the government’s initiative Required to modernize the border facilities and were hopeful that the project would increase trade, and thereby improve business activities in the area. 2 Due to local geo political situations in This concern is related to law FC/FIA/NLC FATA region, most of the business enforcement agencies and also at Operation community at Torkham BCP are the Govt. policy level. Therefore, it is local residents of Khuga Khel Clan of noted down. Shinwari Tribe residing on both sides However, during the meeting held of the border. With the development 3rd April in Torkham this issue was of the new facilities, enforcement of discussed with the FIA, NADRA immigration laws, procedures and NLC operation that how can implicate free movement of the local facilitate the locals regarding their tribal community on both sides of the easy movement in both side of border resulting in reduced their border and how immigration time business. Therefore, Govt. should can be reduced for the commercial issue pass to the locals for cross the vehicles and passengers. border easily. At Chamon border It was decided that with the Govt. issue pass to the locals for development of the project this crossing the border same practice issue hopefully will be resolved should be here. Currently locals are and all departments will cooperate facing issues due to new Govt. rules. with each other to resolve this They suggested flexibility in issue. administrative measures and specific legal instruments to regularize and encourage cross border movement and business of local residents/business community. 3 We have made agreement of the 300 Agree and acquisition of the FBR/NLC kanals to the gov’t. for import export passenger terminal land is in terminal against the amount of Pak process with the Khuga Khel Rs. 20 million per year with the based on the new agreement. increase 5% every year (copy of Agreement is attached as annex-I). However, if gov’t. requires any other land then a separate agreement with us is required. 4 Currently NLC (Contractor) occupied Negotiations is in process by the NLC our land for their camp without any political administration and NLC compensation, therefore, occupied with the local representatives of land should be handed over to us as Khuga Khel clan and soon this soon as possible or compensation of concern will be resolved this land should be provided to us. 5 Another issue due to the Noted down is it related to the FC/NADRA/NLC development of this project we cross security agencies and may be in several check posts which cause future passes will be issued to the waste our time, therefore, to cross locals. the security check posts passes should be issues to the locals and security forces should be adopt good behaviors with the locals. 6 At the Torkham main road Govt. Noted down and related to the FC erected an iron wall in front of our security agencies. shops which should be remove on Erected iron wall is for the smooth urgent bases because of this wall, movement of immigrants from our business has been almost both side and stop illegal finished. immigrants.

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Sr. Comments Responses Responsibility No. However, with the development of this project may be this issue resolved to some extent through the development of proposed business center. 7 Affected hotels and shop owners said Compensation of the affected FBR/NLC that due to the acquisition of this land structures will be paid as per ADB for Torkham BCP, their livelihood will policy SPS, 2009. be lost forever; these shops are their All compensation will be sole source of income and they do not announced and paid before the possess any technical and vocational start of civil works. skills. They will not be able to fulfill the basic needs of their family. Therefore, locals demanded fair compensation to be provided so that they can start their business easily. 8 Another suggestion by the APs of this Business center will be proposed, FBR project that new market should be however, process of shops given developed and provided the shops of to the locals will be decided at later the affected people or assisted to stage of the project. develop an alternative site for However, compensation of the business, prior to the start of the structures will be provided as per construction activities. Bank policy. 9 A few people said that their skilled Noted down and it is the FBR/NLC children should be given employment responsibility of the contractors opportunities during the construction that un skilled job opportunities and operation stage of the proposed should be provided to the locals. project. 10 They said that during the construction Existing N-5 road will not be NLC/CSC and operate stage, the mobility of the disturbed until alternative route locals will suffer, therefore, proper develop for the smooth running of arrangements should be made to traffic as well as locals. ensure their mobility to the BCP. 11 The Torkham BCP lacks banking Hopefully after the development FBR facilities and the local business of this project, banking facilities community travel either to Landi Kotal available in Torkham. for availing banking service facilities. So, to institutionalize the business and financial activities at Torkham BCP, the business owners highlighted that proper banking facilities and better communication infrastructure should be incorporated in the newly designed terminal. 12 Generally, business owners do not NLC will ensure that all damaged NLC/CSC foresee any environmental hazards to resources will be restored or their area due to the project. replaced by the project. However, they mentioned shortage of Contactor will arrange separate potable water in the project area and water supply for the construction apprehended that exploiting water and camp. from existing water sources for execution of civil works may further aggravate local water supplies and suggested for avoiding use of local water supply during execution of the project. 13 They were concerned about the Noted down and NLC is working NLC/CSC limitations of the existing roads and on this issue and will develop when construction will begin and alternative options to minimize this there will be an influx of construction impact before the start of the vehicles; they feared there would be construction activity. P a g e | 55

Sr. Comments Responses Responsibility No. more delays for departure/arrival of their goods. It was suggested that construction activities at new trade and passenger terminals should not interfere the free movement of traffic passing through the existing roads and the movement of construction vehicles should be regulated in such a way to avoid any road blockades and interruption in the business. Besides, the existing terminals and the ongoing business should be kept operative as per its potential to avoid any negative impacts on the business/trade. 14 Truck drivers said that there is only . One petrol pump has been FBR/NLC one petrol pump in Torkham which identified 7 km from Torkham will have to be demolished due to the near Landi Kotal at N-5 which proposed project. If this petrol pump can also be used as is demolished without providing alternative filling station. But alternative site, it will result in oil special measures will be shortage in the area. required to use this filling station such as sign boards for the vehicles.

15 As per APs of the terminal about more NLC will prepare the traffic FBR/NLC/CSC than 3000 vehicles travel per day management plan and will try not from Peshwar to Torkham and during to disturb commercial vehicles construction stage alternative route during construction stage. should be provided these vehicles to avoid the traffic issues and therefore, traffic management plan should be developed. 16 There should be a continuous The GRC will be established for CSC/PMC community consultation program complaint registration and throughout the project resolution. implementation period;

17 There should be employment Noted down FBR/NLC opportunities for skilled and unskilled local people, preference should be given to the affected persons;

18 Vocation training / educations needs Noted down FBR to be provided to local women, so that they could support their families by supplementing their household income; 4.6. FINDINGS OF FGD WITH AFFECTED LANDOWNERS 165. To safeguard community concerns a Jirga was arranged by the Assistant Political Agent in Landi Kotal Jirga House with the elders of Khuga Khel to discuss the project features and the community concerns on different aspects including acquisition of additional land for passenger terminal and grievance redress mechanism for the project. In this regard, a detail consultation was conducted with the 14-members of Khuga Khel (List of Jirga participants is

P a g e | 56 attached as annex-III). Major outcomes of the FGD and a summary of key concerns and suggestions made by the Jirga are presented below.

Plate 14: A view of FGD with APs Plate 15: A view of FGD with APs

Outcomes of FGD with Jirga Sr. Concerns Reply Responsibility No. 1 Business owners confirmed that most Noted down and relevant to FC/FIA of the business community at Torkham the security agencies. BCP are local residents of Khuga Khel However, development of the clan of Shinwari tribe settled on both project will improve the sides of the border and are able to cross situation. border easily to meet their Afghan counterparts. There were no barriers to trade between the two borders. After the introduction of border management system and development of the new facilities, enforcement of immigration laws, procedures and fees impacted on free movement of the local tribal community on both sides of the border resulting in reduced business potential. They suggested flexibility in administrative measures and specific legal instruments to regularize and encourage cross border movement and business of residents & business community. 2 Job/ employment opportunities for local Job opportunities will be FBR/NLC people should be created during the provided to the locals during construction and post-construction construction and operation phases of the project. stage of the project 3 The Local Jirga confirmed that land for Noted down No action BCP is on 99 years lease agreement between the Government of Pakistan and Khuga Khel tribe for 300kanals (37.5acres) communal land. The government of Pakistan will pay @ Rs.20 million per year with 5% annual increase with effect from June 2016.

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Sr. Concerns Reply Responsibility No. The joint Jirga meeting with PA confirmed that 1st payment has been made. The lease agreement was signed by 9 members of Jirga members (3 members each from sub-clan of Khuga tribe). 4 The Jirga members emphasized four a) Accepted and negotiation FBR/NLC basic demands- a) timeframe on regarding vacating of phase-I vacating phase-1 land; b) demarcating land is in process with the of 300 kanal land proposed for trade tribe; terminal; c) timeframe for payment of b) Demarcation of the land compensation for structures; and d) has been done in September, separate entry and exit place at tool 2018; plaza. c) Locals have provided the name of the representatives and 2nd land lease payment will be released soon and structures payment will also be provided to the APs in November, 2018 after approval of the LARP; and d) Noted down

5 Jirga representatives said that that the Noted down and agreement NLC Operation NLC is charging Rs.2500 per truck as has been signed with the trade terminal entry fee. As per the elders of tribe i.e. attached agreement with Khuga tribe, the NLC as annex-I. pays Rs.600 per truck to the local community. The Jirga members call for a revision in the agreement for at least 5% annual increase in terminal entry fee. 6 National Logistic Cell (NLC) as project Negotiation with the PA and NLC implementation agency back in 2015 representatives of Khuga arbitrarily constructed fence around the Khel is in process by the PA proposed BCP area. The and soon this issue will be representatives of the APs raised resolve. concern that; a) fenced area is far more than the proposed designed project area. b) NLC and FATA revenue staff and Jirga representatives should jointly measure the fenced area; and c) carve out the required area for BCP project and release the access for community use.

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Sr. Concerns Reply Responsibility No. 7 All the owners of the affected residential Compensation of structures FBR/Khuga structures are willing to shift to a nearby are being paid to the APs as Khel Tribe location as long as they are per bank policy SPS, 2009.A appropriately shifted to similar location Jirga meeting was conducted on nearby communal land and on 5 July 2018 in Torkham compensated for their structures. with the representatives of Khuga Khel tribe to identify the alternative communal land for the relocation of commercial structures. Tribe representative said that APs will self-relocate on payment of compensation by FBR. As per tribe representatives, there is no tribal land available for re-location. However, they agreed to accommodate the APs on mutually agreed terms and conditions in the shops of Qoumi Market constructed by NLC in Torkham for the local community. Most of the APs belong to same tribe which is receiving an annual lease and benefit-sharing. Therefore, now they are demanding cash compensation rather than relocating them during the Jirga held on 5 July 2018. 8 Land lease agreement should be made PMU Peshawar has worked PMU and local for acquisition of any additional land for with local administration to political the project Finalize the lease agreement administration for the acquisition of additional 3.125 acres land for passenger terminal. 9 What rates are adopted for the Rates have been assessed Building assessment of affected structures? by the building FATA sub- Department division Landi Kotal FATA, Landi department and Kotal and FBR compensation will be made as per replacement through cost basis. Political Administration, Torkham

10 How the affected trees will be APs were explained that 38 FBR/ Forest compensated? affected trees Department have been assessed on the Khyber type, volume, Agency/ Productivity, age and utility in the open market. Political Compensation will be paid as Administration per the assessments to all the affected.

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Sr. Concerns Reply Responsibility No. 11 Where from the labor/ workers will be Local people will be given NLC hired during the project construction priority for employment phase. during construction stage. For this purpose, contractor will be made bound by adding a clause in contract documents to hire the local labor during construction phase. This will be monitored through internal monitors. In case of more candidates, merit based on skills and qualifications will be followed strictly. 12 Who should we contact in case of any The GRC will be established FBR/CSC complaint/objection? for complaint registration and Social resolution. Safeguard Expert

13 When will payments be started for the Payment will be made before FBR/LARC affected structures? the mobilization of contractor. The payment will be issued to the APs by LARC. 14 Transparent and fair compensation Effective monitoring FBR procedures should be adopted mechanism will be introduced to make the compensation process more transparent. 15 Consultation process should be The meaningful consultation FBR/LARC continued and informed consultation through the project cycle disclosure will be carried out as per ADB’s SPS 2009

16 Chances of some environmental Detailed mitigation options effects like noise/vibration and dust have been provided emissions to the nearby community as part of the Initial Environmental Examination (IEE) and the contractor will be bound to comply with mitigation measures by including a clause in the contract. 17 Local transport should not behindered The alternate routes will be FBR during the construction stage. adopted for the smooth flow of the movement 18 Water resource infrastructures should FBR will ensure that all FBR & NLC be restored if damaged damaged resources will be restored or replaced by the project. 19 Structure compensation of the affected Compensation will be paid as FBR houses should be paid as per market per assessment carried out price and before the start of the project by building department FATA before start of the project

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Plate 15: Jirga with APs in Jirga Hall, Landi Plate 16: Jirga with APs in Jirga Hall, Landi Kotal Kotal

Consultation with the Assistant Political Agent (APA) and Political Tehsildar i. This project is beneficial to the locals as well as whole country; ii. During construction stage labour opportunities should be provided to the locals; iii. To avoid the dust and noise pollution international standards should be adopted to reduce the pollution issues in the area; iv. Local administration has made agreement with the Khuga of the 300 Kanals area for import export terminal; v. Compensation of affected infrastructure should be paid to the locals as per market price; and vi. During the construction stage try to address local grievances.

4.7. OTHER CONCERNS/FEEDBACK 166. Basic amenities of life are not available in the project area. Medical facilities, proper education system, local villages’ road infrastructure and electricity are not present in the nearby villages. i. Water Supply/Drinking Water/Irrigation Water 167. Locals informed that water scarcity is a big issue in most of the villages.Therefore, this should be address on priority basis and some funds should be allocated to the water supply system of the nearby villages.

ii. Sewerage System 168. There is no proper sewerage system in the Torkham. Absence of proper sewerage system results in epidemic health problems. Locals demanded that sewerage system in Torkham should be installed to improve sanitation condition of the area. iii. Health/Medical Facilities 169. Water borne diseases are common in the Torkham and Landi Kotal. Diseases such as jaundice, hepatitis, fever, tuberculosis and stomach disorders etc. are common in these areas. Only one small hospital exists at Torkham which serves about 15000 population and is not fully equipped. A doctor available at day time only and most of the time medicine is not available in this hospital. Although, tehsil headquarter Landi Kotal exists, but this is also in poor condition. Due to lack of staff and inadequate space it is overloaded and unable to accommodate the population. Locals travel long distances to reach health facilities and go to P a g e | 61

Peshawar. The situation is even worst for women in need of maternity facilities. Majority of the locals of Torkham and Landi Kotal informed that for childbirth cases, people have to go to Peshawar due to lack of proper maternity facilities in the local hospital. Due to inadequate health facilities, majority of the patients couldn’t get proper treatment. Therefore, people demanded that a new hospital should be establish at Torkham along with this project. 170. Women in the project area are facing major health problems. Most women are facing maternity problem. Medical facilities are far away. Women’s access to these health facilities is not possible because they couldn’t travel long distance iv. Education 171. Education facilities are very poor in Torkham. Only one school for boys and girls exist. Children have to go to Landi Kotal to get high school education. This situation is much worst in case of female education due to non-availability of high school and college in the area. However, an army public school exists in Landi Kotal which provides good education to the students. 172. Lack of income and mobility is the main hurdle in sending the girls to school. High schools and collages were also not available which has also reduced the women literacy status. Males get preferential treatment regarding formal education as compare to females. 4.8. GENDER INVOLVEMENT IN THE CONSULTATION PROCESS 173. One of the overarching pillars of meaningful consultation is the inclusion of vulnerable groups, including women in the consultation process. Regardless of socio-cultural and customary restriction to interact with women in FATA, efforts were made to gain maximum information related to women. Local cultural do not allow to communicate with the women through male or female. Therefore, information related to women were collected from their male members. i. Gender Aspects 174. The emancipation of women is a campaign to give women equal rights and status with men. The emancipation of women (i.e., their liberation from economic and sexual oppression, their access to higher education and their escape from narrow gender roles) is not easily achieved due to the traditional setup. In this rural society, males dominate. Cultural tradition, social practices and low female literacy ratio have left women in a vulnerable position. Women are restricted to performing household work and are excluded from decision-making both on the domestic front and at the community level. Women’s access to education and health care is limited because such services are not available close to home in the project area. Women take active part in agricultural activities, collect fuel wood and fetch water, in addition to household work and family duties, but their due status is not given by the society. 175. Women in the project area of Torkham are also vulnerable through economic, social and psychological poverty. Economic poverty is due to lack of assets and low endowment of human capital. Social poverty derives from the inability of the society to accept women’s equality and their economic, political and cultural rights, while psychological poverty is a product of the subjugation of women, under the dictates of customs and traditions, which deprives them even of control over their own lives. 176. In this tribal set-up women are kept under-educated or uneducated. They are mainly dependent on male members of the family for economic reasons and cannot take decisions

P a g e | 62 regarding their own lives. They have no say in family matters and are not asked about their preference for marriage. Yet for the paucity of rights, women play a vital part in the society through performing essential, albeit menial, tasks and supporting their families (e.g., collection of firewood from distant places, nurturing children, and cooking and cleaning for the family). 177. Information which was collected through secondary sources and group discussion with locals shows that major problems faced by women in the area are lack of primary health care and the lack of education opportunities. Other problems include laborious work such as woods collection for cooking and heating, working in agricultural fields. These tasks not only affect their health but also take up major portion of their time. ii. Key Findings a. Under local customs and traditions, the women are not allowed to participate in outdoor income earning and social activities; the women are seldom allowed go out of their houses without accompanying male members of their family which limits the social circle of women to nearby relatives and neighbors living around. Hence, the role of women in the society is limited to household works with no involvement in outdoor activities and accordingly the participation of women in development process could not be perceived. b. Except for household chores and upbringing of children, the women have limited authority to participate in decision making related to family matters and all the issues related to purchase or disposing household property and other outdoor activities of male family members are decided by the male members. c. The most pressing needs identified by women for the village are a reliable provision of water supply, availability of electricity, development of proper schools and improvement of road conditions in the area. d. During the construction phase of the project, women viewed mobility of their family members as the biggest concern. They expressed that the project proponents should ensure that access to schools and health facilities are not hampered due to construction activities. e. During the post-completion phase of the project, women felt that the area will get an economic uplift with increased business opportunities and improved road conditions. iii. Women Issues and Development Needs 178. As the project area is exist in the tribal area, and rural community, women activities in the field (such as fetching of drinking water, collecting firewood, washing clothes, livestock grazing activities etc.) may be affected due to the construction activities of the trade terminal. Moreover, labor influx for construction works can lead to a variety of adverse social and environmental risks and impacts such as risk of social conflict, increased risk of illicit behavior and crime, influx of additional population (followers), impacts on community dynamics, and increased burden and competition for public services and natural resources. In addition, with specific reference to women, rural women in the project normally use open field latrines, and their privacy may suffer due to project activities especially during the implementation period. The induction of outside labor may create the social and gender related issues due to unawareness of local customs and norms. It will also cause the hindrance to the mobility of local women in the area. Disturbance to the mobility of local women when workers of contactor will work on various construction activities. P a g e | 63

4.9. FUTURE CONSULTATIONSAND PARTICIPATION AND LIMITATIONS 179. Due to security issues and tribal area direct consultation with the APs and Jirga representatives not allowed by the local Govt. administration. Therefore, due these constraints limited level consultation carried out during the development of the LARP. The consultation is ongoing process throughout LARP planning, preparation, updating and implementation phases. As the first round of consultation was conducted during preparation of draft LARP and above discussions reflect it accordingly. Meanwhile the consultation process between the local community PA and FBR is ongoing to arrive a consensus on the methodology of land acquisition and agreement on terms and conditions for LAR processing and implementation. Consultation will be continued and recorded by FBR to arrive a consensus on land acquisition and LAR processing. Future consultation will aim to share the key findings of the LARP including compensation, eligibility matrix and other key aspects. This will be an opportunity for APs to gain insight on the findings of the LARP and provide feedback. 4.10. DISCLOSURE OF LARP 180. Key features of this LARP have already been disclosed to the APs during focus group discussions, census and socio-economic surveys and field level corner meetings between the APs, consultants, NLC, and FBR. However, following steps will be undertaken for disclosure of LARP. 181. The LARP will be disclosed to APs in the shape of a booklet that will serve to inform APs about key aspects of the compensation and entitlements established for Torkham BCP and the implementation and monitoring mechanisms that will ensure transparent and fair execution of these aspects. An information booklet having summary of impacts, asset valuation, unit rates, eligibility criteria, compensation entitlements, compensation delivery and grievance redress mechanism with institutional arrangements for implementation of LARP will be prepared. This information booklet will be translated into Urdu and Pushto and will be distributed to all the APs. This Dissemination report is attached as annex-V. This information booklet will be prepared and distributed by the National Logistics Cell within one month of preparation of the LARP for Torkham. As per LARP implementation schedule, the LARP will be uploaded on the ADB and FBR websites by November 2018. 182. After approval by the ADB, the final LARP will also be uploaded on FBR and ADB websites while hard copies of the approved LARP will be placed in relevant government departments managing border activities and will be shared with the local Union Council’s Office. Summary LARP will be translated into Urdu and Pushto by FBR covering information about project impacts; asset valuation, unit rates, eligibility criteria, compensation entitlements, compensation delivery and grievance redress mechanism with institutional arrangements and shall be disclosed to the APs including women and other stakeholders by Project Office through Resettlement Specialist in PIU before start of LARP implementation. 183. A schedule explaining the date, time and venue for disbursement of compensation cheques for each affected village, compensation claim sheets for each AP&compensation disbursement and asset removal notices will be prepared in Urdu, Pushto and distributed to all APs. This information will be shared with the APs within 1 month of finalization of the LARP for Torkham.

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SECTION 5 GRIEVANCE REDRESS MECHANISM

5.1 GENERAL

184. It is very common that APs have grievances related to project actions including identification and assessment of their lost assets and compensation delivery during different stages of LAR process in a development project. Major complaints on LAR process may include but not limited to the following issues: . Incorrect identification of losses; . Disconnect between compensation and entitlement matrix; . Dispute over ownership; . Delay in disbursement of compensation; . Unfair distribution of compensation, especially in case of joint ownership/communal land

185. The FATA has distinctive legal and administrative framework known as Frontier Crime Regulation of 1901 (amended in 2011) and the administrative and judicial systems of the country are not applicable in the FATA. Although a legal mechanism is available in the form of the Land Acquisition Act, 1894 in settled areas of Pakistan; which include provisions to address concerns related to assessment and valuation of acquired assets, apportionment and delivery of compensation to legal title holder only. But, the Act is not applicable in FFATA. In FATA the acquisition of land and process for redress of grievances follows provisions of FCR (1901) through a consultative process with the local elders as per customs and traditions in vogue. Under LAA 1894 and FCR 1901 regulations, the issues pertaining to payment of compensation costs for acquired land and other assets to the entitled persons are taken care of. Cost of resettlement and rehabilitation/livelihood restoration of APs are not considered under the applicable legal system. Principles 186. ADB requires that a GRM is established and maintained. A grievance mechanism will ensure that APs appealing against any disagreeable decision, practice or activity arises from land or other assets compensation. APs will be fully informed of their rights and the procedures for addressing complaints whether verbally or in writing during consultations, surveys and the timing of compensation. This GRM is designed to efficiently receive and facilitate the resolution of APs’ concerns and grievances on project-level social and environmental issues. The GRM should be scaled to the risks and impacts of the Project. It will address APs concerns and complaints promptly, using a simple and transparent process that is gender responsive, culturally appropriate and readily accessible to all segments of the APs. 187. The information of grievance redress process will be widely disseminated to all AP’s during Project consultations and FGD’s after the finalization of this document. The Project GRM will be in effect from the commencement of Project implementation activities up till six (06) months after the completion of the civil works. To launch a complaint, APs/local community should enter their complaints/concerns and issues formally and accordingly the Project staff will enter the complaint on Community Complaint Register (CCR) consisting of as a minimum information such as; name and address of complainer, description of complaints and other necessary information / record and reasons in case issue has not been

Page | 65 resolved. Proper consideration will be given to avoid the grievances rather than going through a redress process. This will be obtained through the practicable RP design and implementation, by ensuring full participation and consultation with the APs and by establishing extensive communication and coordination between the APs/local community, PMU, revenue department (LAC) and other line departments. 188. This leaves a gap in land/asset acquisition process followed under local legal frameworks and ADB policy as far as compensation for resettlement and rehabilitation aspects are concerned. To address these gaps and resulting concerns or grievances of APs, an effective grievance redress mechanism that is fully commensurate with local customs and legal framework is required for timely resolution of grievances and achieving transparency in resettlement process. 189. Accordingly, a three-tier grievance redress mechanism is proposed for the project which includes: 1. Local Jirga (including sub PMU15, PIU and Community representatives); 2. GRC at project level (headed by APA); and 3. FATA administration i.e. PA, Khyber Agency in case the grievance is not resolved at GRC level. 190. The main objective of the grievance redressed procedure is to provide a mechanism to mediate conflict fully commensurate with the local customs and administrative framework and cut down on lengthy litigation, which often delays projects. 191. Keeping in view the customary dispute resolution system in project area and applicable legal and administrative framework a grievance redress system that is fully responsive to local customs and applicable legal framework is being proposed for this project. 5.2 JIRGA LEVEL 192. As per local customs in FATA, the disputes are resolved through mediation by the elders or notables. Locally, the process of mediation is known as Jirga. The Jirga is constituted with consensus of disputing parties as and when any issue arises. 193. In the proposed project area, the acquired assets are owned by Khuga Khel tribe which has three clans. The tribe has already nominated a three (09) members committee (Jirga) as referred in annex-IV consisting three nominated members from each clan to engage with the government and project executing authorities to safeguard the concerns of the local community and for negotiated settlement of land and assets acquisition. On the government side a three-member committee including members from Project Implementation Unit (NLC), Social Safeguard Expert, Construction Supervision Consultant (CSC) and Monitoring and Evaluation (M&E) expert from Sub-PMU Peshawar, FBR are coordinating with the tribal committee for negotiated settlement of land acquisition and other stakes of local community (Refer figure 5.1 a & b);

15 A sub PMU headed by Project Coordinator have been established at Peshawar to carry out onsite functions on behalf of PMU in FBR and provide interdepartmental coordination with relevant Provincial government and FATA ministries/departments, for smooth implementation of the project.

Page | 66 Figure 5.1 (a): First Tier Mechanism

First Tier (Local Jirga)

09 (Nine) Representatives of NLC Representative Co-opted Member Sub-PMU Monitoring

Local Tribe Social Safeguard Expert and Evaluation Expert

194. As and when a complaint is received, it will be recorded in the complaint register by the Co-opted member Social Safeguard expert of CSC and sent to Project Coordinator sub PMU at Torkham BCP site for forwarding it to the Jirga and sending an acknowledgment to the complainant within 2 days after receiving. The complaint will be referred to the Jirga by the Project Coordinator (including members from the government committee and community committee) for examination of the issue and its resolution at local level and an acknowledgment to this effect will be send to the complainant within seven (07) days of receipt of complaint. Thus, during project execution, the Jirga will serve as the first step where concerns and grievances of local people will be recorded, discussed and resolved as per local customs and traditions. The Jirga will investigate the issues, hear and record concerns of the aggrieved party and will examine the evidences produced and shall adjudicate the complaint with 15 days of its receipt by Jirga. 195. The Jirga will be supported by the sub-PMU and PIU for required documentation of the complaints and oversight regarding problem resolution within the ambit of the LARP for Torkham BCP. The co-opted member Social Safeguard Expert of the CSC will participate in all meetings of the Jirga to record the proceedings and facilitate the Jirga members to adjudicate the issue/compliant with the LARP provisions as per eligibility and entitlements defined. The Social Safeguard Expert will also monitor the progress on complaints and facilitate the sub PMU and PIU to ensure that the proposed remedial actions are executed and complaints are closed as duly resolved. Moreover, the Jirga through sub PMU/PIU will ensure that those issues that cannot be solved at the Jirga Level are elevated to the GGRC established under the chairman ship of the Assistant Political Agent Landi Kotal.

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Figure 5.1 (b) : First Tier Mechanism

Receive Complaint

Within 02 (days) sent to Sub-PMU Project Coordinator Co-opted Member CSC Social Safeguard Expert

Sub-PMU Project Coordinator Sent Project Coordinator complaint to Jirga and Committee within 3 days after receiving Sub-PMU Peshawar

Jirga and Govt. Committee issue resolve within 15 days after receiving Jirga and Govt. Issue Resolved of date Representatives

If issue is not resolved, it will be referred to the GRC committee GRC Committee

5.3 GRIEVANCE REDRESS COMMITTEE

196. If a grievance is not resolved at the Jirga, it will be elevated to the GRC established under the chairmanship of the APA Landi Kotal comprises 4 (four) members i.e. i) Project coordinator, sub-PMU, ii) co-opted member Social Safeguard expert from PMC, iii) one person from NLC (Contractor) and iv) one representative from locals. It will be the responsibility of co-opted member Social Safeguard expert of CSC to provide the required feedback to the GRC regarding the complaints and efforts exhausted at Jirga level to resolve the issue. After receiving a complaint, the first step will be the entry of complaint in the office record and within 7 (seven) days the GRC will convene meetings with the aggrieved person (s) and Jirga members to assess the problem and find plausible solutions on scheduled date and times. After preliminary assessment, the APA as administrative head of the area will investigate the complaint through local administration which will share its facts finding report with APA in 15 days of receipt of complaint. After receipt of the fact-finding report, within next 7 days the GRC chaired by APA will convene its meeting and shall adjudicate the issue as per eligibility and entitlement provisions outlined in LARP of Torkham BCP fully consistent with local customs, legal and administrative framework of the area. For clarity please refer figure 2 a & b.

Page | 68 Figure 5.2 (a): Second Tier Mechanism

Second Tier (GRC)

Chairman Assistant Political Agent (Landi Kotal)

Member-1 Member-2 Member-3 Member-4

Project Coordinator Co-opted Member Contractor Representative from Representative (NLC) (PMU) Social Safeguard the Local Jirga Expert (PMC)

197. The GRC shall decide the complaint, share its decision with the sub PMU/PIU and complainant within 30 days of receipt of complaint for further implementation/execution of the decision and subsequent closure of complaint accordingly. However, if the complainant/ aggrieved person is not satisfied with GRC decision, he/she can request the GRC to elevate his/her complaint to next higher level i.e. the PA, Khyber Agency.

Page | 69 Figure 5.2 (b): Second Tier Mechanism

Receive Complaint

Within 07 (days) conduct meeting GRC with members

APA

Local Administrative Investigate the issue and submit report to the APA within 15 days of complaint

Submission of Facts

Finding Report to APA Within 7 days after report

GRC Committee

Meeting

If APs are satisfied than complaint will Decision Share with APs are not be forward to the PA PMU and APs satisfied

Political Agent (PA)

5.4 OFFICE OF THE POLITICAL AGENT, KHYBER AGENCY 198. In the case the complaint is not resolved at the level of the GRC or the complainant is not satisfied with the GRC decisions and he desires so, within 7 days of GRC’s decision communicated to the complainant and PIU, the issue with all GRC record will be forwarded to the PA, Khyber Agency for his review and taking cognizance under legal and judicial framework applicable in FATA. Upon receipt of complaint, the PA will review the record and call the complaint/complainants to hear and record their concerns and initiate any further investigations (if required) for resolving the complaint. During investigation the PA will be at the liberty to hold meetings with the, sub PMU/PIU GRC, Jirga and any other stakeholders, as required, for resolution of the complaint. After this second round of fact-finding is complete, the PA will decide regarding the complaint and inform the aggrieved person, the sub PMU & PIU, GRC and Jirga for required execution on-ground and closure of the grievance process or will refer the matter to Council of Elders under regulation 8 of FCR 1901 for its findings as per Riwaj (custom). In case the matter is referred to council of elders, the PA will nominate the council of elders and shall refer the issues in dispute on which the findings of council of

Page | 70 elders will be required. And upon receipt of finding from the council of elders, the PA shall pass a decree on the issues. Figure 5.3: Third Tier Mechanism

Political Agent (PA)

PA review of GRC decision and record

PA call to complainants Issue resolved

Submission of Facts Finding PA decision Report to PA

Refer to Council of Elders

Refer to Council of Elders Recommendations

PA Final Decision

5.5 INFORMATION DISSEMINATION AND COMMUNITY OUTREACH

199. The grievance redress mechanism for the project will be complimented by a robust information dissemination and community outreach component. As part of this component, the FBR will be required to provide relevant information regarding their rights to the APs as per the policies and regulations outlined Frontier Crime Regulation 1901 (as amended 2011), ADB’s SPS (2009) and the approved LARP. All relevant information will be translated in Urdu and Pushto to ensure acceptance by local communities. The APs will be informed about the three different tiers of the grievance redress procedure, including the roles of the Jirga, the GRC and the Office of the PA in grievance resolution. The APs will be provided information about contact details of the focal points for each of the three tiers of the GRM and the process for lodging complaints. Once a AP has lodged a complaint, APs will be acknowledged about the receipt of complaint and field visits plan of GRC for investigation of the issues and problem identification as well as the scheduled of hearing will be communicated to ensure that aggrieved person is available during field investigations and hearing proceedings. Moreover, the Resettlement Specialist and his team will closely liaise with the APs and keep

Page | 71 them updated regarding the progress towards grievance resolution and final decisions. Dissemination and community outreach is attached as annex-V.

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SECTION 6 LEGAL AND POLICY FRAMEWORK

6.1 LEGAL AND POLICY BACKGROUND 200. The compensation and rehabilitation program detailed in this LARP has been based on the requirements of Pakistani legislation and of the ADB Safeguards for involuntary resettlement and Indigenous People as outlined in SPS 2009 and OM Section F-1/OP 2010. This section details the Torkham LARP’s legal background, compares Pakistani Law and ADB policies, indicates differences and ways to reconcile them. 6.2 CONSTITUTIONAL AND LEGAL FRAMEWORK FOR FATA &TRIBAL PEOPLE 6.2.1 Provisions is in the Constitution 201. The Khyber Agency is a part of FATA, as defined in Article 246(c) of the constitution of Islamic Republic of Pakistan. Since accession agreement signed in 1947, Pakistan also retained the semi-autonomous status of the area with the Governor General assuming direct administrative jurisdiction over it. Except for minor changes, the 1956, 1962 and 1973 constitutions of Pakistan retained the same arrangements. Accordingly, under Constitution of 1973, the executive authority over FATA rest with President who exercises his authority through the Governor of Khyber Pakhtunkhwa Province as his agent. Under article 247(3) of the Constitution of Pakistan, acts of Parliament do not apply to Federally Administered Tribal Areas unless the President so directs. So, the National laws including criminal code of Pakistan and judicial system under national laws does not apply to the tribal areas and even, the jurisdiction of the country’s high courts and the Supreme Courts is debarred under constitution. However, the people from the tribal area can approach High Court Peshawar and Supreme Court of Pakistan by invoking constitutional writ under Article 184 of constitution. 202. The constitution guarantees full independence of the tribal agencies and any interference by the government is prohibited. As these areas enjoy a special status in the constitution, and the laws of the country do not operate in the project belt. Following the same principle, the body of laws and practices relative to Land acquisition which are embedded in the Land Acquisition Act of 1894 (as amended) are not applicable in tribal areas (as with most other laws of Pakistan) 203. The present constitutional status of FATA is enshrined in Articles 246 and 247 of the 1973 constitution of the Islamic Republic of Pakistan, conferring continuity of status enjoyed during British rule. The constitution provides for a special mode of governance under tribal customs and traditions through a Political Agent (PA), who acts as a representative of the federal government. The unique status of the tribal area confers three special privileges, i.e. a) the legislation is the responsibility of the President of Pakistan, b) Federal and provincial laws of Pakistan have to be specifically extended to the area under Presidential Order and c) the superior courts of the country have no jurisdiction and its independent status cannot be altered without the prior consent of the people of the tribal areas. 204. The gap left void by the non-applicability of the national regular law in Tribal Areas is filled by the Frontier Crimes Regulation (FCR) of 1901. On the one hand the FCR sanctions the tribal customary rules as the appropriate means to deal with crimes and civil matters in tribal areas, establishes the authority and the jurisdiction of the Political Agent (PA) as the

Page | 73 supreme representative of the Government in those areas, and stipulates that legal rulings are to be taken by the PA in agreement with the Tribal leaders. 205. By successive amendments and through its jurisprudential history of application over the years the FCR also establishes the general mechanisms through which tribal customs and practices are to be taken into consideration in the administration of daily affairs including management, administration and maintenance of law and order situation with involvement of malik (local tribal elders). FCR stresses the importance of consultation and implies the need of agreement between the PA and the representatives of the Tribes while administering the affairs of the tribal areas. This applies as well to the execution of tasks such as land acquisition and valuation and adjudication of inter or intra tribe civil disputes through involvement of local Jirga. Within these horizons the FCR provides a situation conducive to the implementation of the ADB’s LAR related safeguards requirements as stipulated in SPS 2009 without major modifications of the established practice. 6.3 LAND ACQUISITION & RESETTLEMENT BACKGROUND (PRACTICES IN FATA) 206. The 1894 Land Acquisition Act (LAA) with its successive amendments is the main law regulating land acquisition for public purpose in Pakistan. LAA implementation rests on the Provincial Governments and more specifically on the Provincial Board of Revenues through their District Land Revenue Officers designated as Land Acquisition Collectors. As already noted, the land acquisition act is not extended to FATA and project implemented in those locations follow completely different legal and administrative stipulations as outlined in the FCR. The same will be valid also in the case of this Project. 207. In FATA under recent amendment in FCR 1901, regulation 56 is inserted to for protection of property rights which provides that no person shall be compulsorily deprived of his property unless he is paid adequate compensation with consensus rate or government assessed value in vogue in settled areas. Land Acquisition for this Project will be carried out in accordance to the processes in place in FATA which are based on the principle of negotiation and agreement between the Pakistani Government, (locally represented by the PA), and the maliks. 208. In tribal territories it is not possible to speak of market rates because selling of land is considered immoral and land is seldom sold. Even for execution of the project communal land is provided to government on prolonged lease without forgoing the land title or free of cost in community’s interest. In the project area such land leasing is in practice since British rule. Accordingly, in the instant case, instead of alienating customary land title by selling land for project implementation, the local Jirga is negotiating with government the terms and conditions for leasing of land with community’s interest fully safeguarded. In such arrangement, the land title of local community will not be forgone and, the barren land will become a permanent source of productivity for the community. However, if ongoing negotiation on release of land through lease agreement is un-successful, the process for compulsory acquisition may follow as per provisions laid down in FCR 1901. If it is the case, the compensation rate will be agreed through consensus between the Local Maliks/landowners and the PA following regulation 56 of the FCR. Hence for this LARP replacement cost will be either cash compensation agreed between Tribal elders and Political Agent in case of release of land on lease or cash compensation to sell land at consensus rate as long as the agreement is transparent and clearly documented.

Page | 74 6.4 ADB’s SAFEGUARDS REQUIREMENTS UNDER SPS 2009 6.4.1 Involuntary Resettlement Safeguard Requirements ADB’s SAFEGUARD POLICY STATEMENT (2009) 209. The SPS 2009 is based on the following objectives: to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all APs in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. The following principles are applied to reach these objectives: i. Screen the project early on to identify past, present and future involuntary resettlement impacts & risks and determine the scope of resettlement planning through a survey and/or census of APs, including a gender analysis, specifically related to resettlement impacts and risks; ii. Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all APs of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring & evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of APs and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase; iii. Improve, or at least restore, the livelihoods of all APs through (i) land-based resettlement strategies when affected livelihoods are land-based where possible, or cash compensation at replacement costs for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv. Provide physically and economically affected persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. v. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas, provide them with legal and affordable access to land and resources; in urban areas, provide them with appropriate income sources and legal and affordable access to adequate housing. vi. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

Page | 75 vii. Ensure that affected persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. viii. Prepare a resettlement plan elaborating on APs entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. ix. Disclose a draft resettlement plan or the compensation matrix, eligibility criteria or rates determined for the affected land, structures, trees etc., including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. xi. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. xii. Monitor and assess resettlement outcomes, their impacts on the standards of living of APs, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. ADB policy also require disclosure of monitoring reports. 6.5 COMPARISON OF KEY PRINCIPLES AND PRACTICES OF PAKISTAN’s FCR 1901 AND ADB’s IR SAFEGUARDS-SPS 2009. 210. The Land Acquisition Act of 1984 is not applicable in FATA and land acquisition follows the FCR 1901 provisions which provides an administrative set-up for FATA including acquisition of asset for public purpose projects. A comparison of Land acquisition under Pakistan’s FCR 1901 applicable in FATA and the ADB’s Policy on Involuntary Resettlement (IR) shows that there exist major differences in the two instruments. The objective of this comparison is to identify if and where the two sets of procedures are in conformity with each other and more importantly where there are differences and gaps. The key consideration is that by following the ADB assessment procedures, the requirements of the Pakistan and FATA regulatory systems are also complied with. The key ADB Policy Principles are (i) the need to screen the project early on the planning stage (ii) carry out meaningful consultation (iii) at the minimum restore livelihood levels to the pre-project conditions and improve the livelihoods of the affected vulnerable groups (iv) prompt compensation at full replacement cost is to be paid, (v) provide displaced people with adequate assistance (vi) ensure that displaced people who have no statuary rights to the land that they are working are eligible for resettlement assistance and compensation for the loss of no-land assets and (vii) disclose all reports. Table 6.1 below presents a gap-analysis between the Pakistan’s FCR 1901 and ADB’s Safeguard Policy Statement (2009).

Page | 76 Table 6.1: Comparison of Pakistan’s Frontier Crime Regulation (FCR) 1901applicable in FATA and ADB’s Safeguard Policy Statement (2009)

Key LAR Frontier Crime Regulation (FCR) ADB IR Safeguards-SPS 2009 Aspects 1901 of FATA, Pakistan IR Policy Government does not have a ADB Safeguard Policy Statement national policy on resettlement and provides a policy on involuntary rehabilitation of affected persons. resettlement with principles, objectives and procedures for implementation.

LAR Planning No requirement of LARP Preparation of draft and final LARP.

Consultation, The consultation about project Meaningful consultation, timely information objectives, land requirements and disclosure of relevant information and and acquisition mechanism as well as participation in LAR planning participation compensation rates are carried out of APs with local affected tribal community. Disclosure of No LARP Requirement as such. Disclosure of draft & final LARP to APs LARP and on ADB website Grievance Project specific GRM not Establish GRM scaled to risks and redress established, however, all issues impacts of project at project and field regarding land and other social levels. disputes are settled as per local customs by the PA through involvement of local Jirga/Council of elders as per local customs. Assessment of No requirement in FCR Census, socio-economic survey, detailed social impacts measurement survey and valuation of lost assets Cut-off date No specific requirement under Eligibility for entitlements under ADB’s IR FCR, however with initiation of requirements is limited by a cut-off date, consultation affected properties determined at the time of social impacts and communities are listed for assessment (SIA) survey, census of APs, eligibility purposes. inventory of losses (IOL) and socioeconomic baseline survey. Involuntary Governed through negotiated Eminent domain is recognized while LAR settlement on consensus rates. negotiated land acquisition is encouraged subject to social safeguards provisions. Eligible APs No land records available thus all All physically and economically affected physically and economically persons, including titled and non-titled, affected persons occupying land with differential entitlements. before project are eligible to the extent of usufruct right as per local customs. Compensation The valuation of structures is Replacement of structures or cash of structures based on consensus rates without compensation at replacement value, depreciation and salvage allowed salvage material allowed without to affected household paid through deduction for all APs, titled and non-titled. elder. Community Damages done to land and Restoration/provision of civic and public structures are to be paid for infrastructure and community services. resources rehabilitation. Replacement Compensation on Consensus rate Full replacement cost includes fair market cost agreed between the Asset Owners value, transaction costs, interest and the cover transitional and accrued, transitional and restoration restoration costs while without costs and other applicable payments depreciation and tax as tax laws without depreciation. In case land market are not extended to FATA. nonexistent, land valuation to be done by qualified and experienced experts.

Page | 77 Key LAR Frontier Crime Regulation (FCR) ADB IR Safeguards-SPS 2009 Aspects 1901 of FATA, Pakistan Income Only compensation for lost assets Enhance, at least restore, APs’ restoration with no resettlement allowances livelihoods. Compensation of lost and livelihood and/or any income restoration incomes and livelihood sources at full support support. replacement cost; credit, training and employment assistance; project development benefits. Women and No provision in law. Improve livelihoods to at least national Vulnerable minimum standards. persons Due consideration of women in census and surveys, consultation, grievance redress, as well as compensation and rehabilitation. Relocation No provision in LAA. Secure tenure, better housing, assistance transitional support, infrastructure and services. Timing and FCR protects the property rights No physical or economic displacement notification of and requires compensation before before compensation has been paid, displacement depriving the affected person of his other entitlements have been provided assets and income and livelihood program is in place. Monitoring No requirement on FCR. Monitoring and assessment of IR and evaluation outcomes; disclosure of monitoring reports. 6.6 REMEDIAL MEASURES TO BRIDGE THE GAPS 211. To establish a land acquisition and resettlement policy framework for the Project, which reconciles Pakistan’s legal and regulatory system (FCR 1901) applicable in FATA for LAR and ADB’s IR Safeguards as in SPS 2009, and addresses the gaps between the 2 systems, the following principles (as mentioned under the project LAR policy below) will be adopted. The following policies will be adopted for implementation of Torkham IBSP. 6.7 PROJECT LAR POLICY i. The Projects will avoid, minimize or mitigate involuntary LAR impacts causing physical and/or economic displacement and a LARP will be prepared to compensate all APs. ii. APs and other stakeholders will be consulted and informed as well as given an opportunity to participate in LAR planning in a form accessible and understandable to them. iii. Each draft, final or updated LARP will be submitted to ADB for review/approval, endorsed by the borrower/client and disclosed on the ADB websiteas well as by placing its copies in an accessible place in a manner and language understandable to APs. iv. A grievance redress mechanism fully consistent with FATA customs and practices with representation of all stakeholders will be established at the time of project inception. v. A comprehensive assessment of social impacts, involving (i) a census of all APs, and an inventory of their lost assets (ii) a socio-economic survey of a sample of at least 25 percent of APs, & (iii) a detailed measurement survey and valuation of all lost assets as well as an assessment of lost incomes will be carried out. vi. An eligibility cut-off date will be declared and formalized on the date of completion of social impacts assessment survey and census of APs. vii. In accordance with local customs and legal requirements, land acquisition will through negotiated settlement of land compensation and mechanism for release of land for

Page | 78 project with all negotiation proceeding fully recorded and documented. The ADB SPS SR2 requirements apply to such negotiated settlements. viii. For collective barren land (unoccupied) whole tribal clan occupying land to be acquired by the project will be eligible for compensation, relocation and rehabilitation measures as per local customary usufruct rights through its malik. While in case of settled private land or collective land occupied under residential structure or put under other beneficial uses, the household occupying that land will be eligible for compensation, relocation and rehabilitation measures as applicable, regardless of whether the impacts are permanent or temporary, full or partial. Non-titled APs without legally recognizable claims to land will be eligible for all compensation, relocation and rehabilitation measures, except land. The full eligibility of non-titled APs with legally recognizable claims to land is recognized as per local customs. ix. Compensation of land and structures will be done at consensus rate and mechanism agreed through cash compensation at replacement cost. Replacement cost involves fair market value, transaction costs, interest accrued, transitional and restoration costs and other applicable payments without depreciation. For replacement of land or structures all transaction costs will be paid by the project or included in compensation payments to the APs. The value of structures will not be depreciated for age. x. All lost civic infrastructure and community services will be either restored or newly provided at relocation sites. xi. Incomes and livelihood sources lost, including but not restricted to crops and trees or interruption of business activities and employment, will be fully compensated at replacement cost. APs permanently losing incomes and livelihood sources as well as poor and vulnerable APs are entitled to credit, training and employment assistance to maintain or improve their livelihoods. xii. All APs will be provided opportunities on preference to share development benefits of the Project, if feasible. xiii. Relocated APs will receive secure tenure to replacement land, better housing, transitional support and access to civic infrastructure and services. xiv. APs will not be physically or economically displaced before compensation has been paid, other entitlements have been provided and an income and livelihood program is in place. xv. The implementation of LARP provisions, delivery of compensation and resettlement and rehabilitation assistance for income losses and restoration of livelihoods of the APs will be monitored during and evaluated after LARP implementation.

6.8 COMPENSATION ELIGIBILITY AND ENTITLEMENTS 212. Land Acquisition and Resettlement tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with Pakistan’s law/ regulations, local customary rights in FATA and ADB Policy. Land acquisition process followed under FCR 1901 and ADB safeguard policy both watch the interests of APs, if there is any contradiction in policy and law, ADB policy will prevail. 6.8.1 Land Acquisition Process for Torkham and Achievements 213. The process of land acquisition for the Project was initiated based on preliminary basic design. In FATA the governing law for acquiring assets for project in public interest project is FCR 1901 as amended in 2011. Regulation 56 of FCR provides property protection

Page | 79 rights by inhibiting compulsory acquisition of assets. Thus, in project area the only available mechanism for acquiring land is through negotiation between the landowners either individual or the tribe which best fits with ADB’s safeguard policy on involuntary resettlement. From government side such negotiations are led by the Political Agent while from community side the household elders (for individual land) or the tribal elders/maliks (for communal land) are the major stakeholders in the negotiation process. Since land resource is taken as joint property of the clan (in case of communal land) or by the extended family (in case of privately owned land) and land record showing shares of each entitled clan, sub clan or family members are not maintained in the FATA; and resource distribution follow their customary rights and practices wherein the tribal elder (Malik of clan or lineages for communal asset) or the elder of the extended family (for family owned asset) are responsible for equitable distribution of resources within the tribe or the family. For compensating lost assets local customary practice will be followed and compensation for communal land will be paid to through elders/maliks representing the tribal community. 6.8.2 Land Lease Agreement 214. For land acquisition purpose, a nine-member Jirga comprising of three members from each lineage (Ashraf Khel, Basi Khel and Fatmi Khel) of Khuga Khel clan of Shinwari Pashtun Jirga members were nominated by the community to negotiate terms and conditions with mechanism to acquire land for the project. The Jirga members professed the community will not sell land but release land for project on lease basis. Local Jirga and the PA through its APA negotiated the details for lease tenure, compensation rates and relocation options of affected property to ensure the income losses if any are restored. Based on the mechanism, 300 kanals of land has been leased for trade terminal while in passenger terminal 25 kanal negotiation has been started with these representatives. The negotiation process to outline and tune terms of reference for lease tenure and compensation rates with mechanism for payment of compensation and benefit sharing is under process for 25 kanals land of passenger terminal. The border framework negotiations revolved around: i. The lease term and compensation rates including land lease rate; ii. Allowances/toll for each freight vehicle using the terminal at a consensus rate; iii. Provisions of replacement structure of similar type and dimensions within service and business area proposed in the new border crossing facilities or construction of replacement structure on alternate land to be provided by the community, or compensation of affected structure on consensus rate; and iv. Employment opportunities for tribal communities in new terminal facilities. 215. The consensus arrived in November 2016 on land lease and allowances as under; a) Communal land will be leased out for a 99-year period for Rs.2016 million per year, with 5% annual increase. The lease agreement is renewable; b) Annual lease payment will be made in the name of Jirga Committee for the project; c) Total 432 kanal communal land will be acquired for the trade terminal, that includes 132 kanal already leased to the Pakistan Army (Army has issued NOC to FBR) and 300 kanal leased by the tribe to FBR for the period of 99 years lease;

16Jirga meeting with APA held on January 11, 2018 confirmed receipt of 1st year payment for land lease of Rs. 20 million in November 2016.

Page | 80 d) Consensus also built on allowance/toll for each freight vehicle using the trade terminal. The NLC will charge Rs.2500 each vehicle of which Rs.600 per vehicle will be paid to Jirga Committee through the Political Agent; e) The replacement cost of structures will be paid on consensus rates; in addition to this the service structures will be provided alternate land within the designed space of the trade terminal; and f) Tribal communities will be provided employment opportunities within the new terminal facilities. 6.8.3 Crops and Trees. 216. The project is in uncultivable land, hence no crop losses identified. The trees grown in the land are generally wood trees and the compensation of the trees will also base on negotiated settlement and market price along with salvage. Table 6.2: Summary of Affected Trees Cost

Sr. No Species Total Cost Pak Rs. Non-Fruit (wood) Trees 1 Acacia Nilotica (Kikar) 8 372,000 2 Mulberry 1 27,400 3 Eucalyptus 29 820,920 Total 38 1,220,320 217. Fruit Trees: The survey during the visit to the project area provided no indication of any fruit tree in the proposed project area. 6.8.4 Structures 218. Buildings & structures i.e. houses and commercial structures valued at replacement cost based on current market cost of materials, labor and other costs required for construction of a structure of similar type and dimensions without deducting salvaged material. Accordingly, a budget estimate is worked out by Building FATA Sub-division Landi Kotal, for lost assets (other than land) including commercial & residential structures on replacement cost basis for reconstruction of replacement structures.

Page | 81 SECTION7

ENTITLEMENTS, ASSISTANCE AND BENEFITS

7.1 GENERAL 219. This section defines affected persons’ entitlements and eligibility, and describes all resettlement assistance measures in terms of an entitlement matrix; identify and document the households who will be eligible for transitional livelihood support; specifies all assistance to vulnerable groups, including women, and other special groups; and outlines opportunities for APs to derive appropriate development benefits from the project. 220. LAR tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with Pakistan’s law/ regulations applicable in FATA and ADB Policy. FCR 1901 and ADB safeguard policy (2009) will protect the interests of APs, if there is any contradiction in policy and law, ADB’s policy will prevail. 7.2 COMPENSATION ELIGIBILITY 221. Since land management system and records describing shares of each clan, sub clan or family members are neither maintained nor available in the FATA; land resource is considered as joint property of the clan (in case of communal land) and the tribal elder (malik of clan or lineages) is responsible for equitable distribution of resources owned. The following principles will be followed as per local customs. . APs losing the use of structures and utilities, including titled and non-titled owners, registered and unregistered. . APs losing business, income and salaries of workers or a person or business suffering temporary effects, such as disturbance to land, and business operations both permanently and also temporarily during construction. . Loss of communal property, lands, and public infrastructure. . Vulnerable affected persons identified through the social impact assessment. . In the event of relocation, all entitled APs will receive transitional and other support to re-establish shelter and livelihoods.

7.3 CUT-OFF DATE 222. Compensation eligibility will be limited by a cut-off date which could either be the start or completion date of census of impacts. For preparation of this LARP socioeconomic baseline survey and census survey of APs (including titled and squatters) was completed in March and accordingly the cut-off date determined is 26 January 2018. Any person who occupies the project area after the cut-off-date will not be eligible for compensation. However, he will be given sufficient time (30 days) to remove his belongings from the project area.

7.4 COMPENSATION ENTITLEMENTS 223. About 300 kanals (37.5 acres) of land for trade terminal has been leased for 99 years through negotiations from the tribe (For detail refer previous section). Negotiation for leasing the remaining 3.125 acres land from Khuga Khel tribe in passenger terminal area is ongoing. Assets located on the land including commercial and residential structures as well as the income and livelihood losses will be compensated as per provisions of the ADB’s Policy and LAR requirements outlined below.

Page | 82 224. As per LARP provisions, replacement value is the basic principle guiding the allocation of entitlements, i.e. the compensation packages provided for lost assets and income will be fair enough to replace in kind or cash what is lost in terms of land, structures, livelihood, community facilities and services, with special provisions for the improvement of livelihoods of vulnerable APs. The LARP is prepared based on full census of affected assets linked with affected persons as of preliminary design and LARP entitlements are proposed accordingly. However, unanticipated impacts (if any) identified later will be compensated on full replacement cost following LARP entitlement provisions in entirety. 225. Entitlement provisions for APs losing land, houses, and income losses and rehabilitation subsidies will include provisions for permanent and temporary land losses, house and buildings losses and trees losses, a relocation subsidy, and a business losses allowance based on their average income as per Census survey and/or lump sums. These entitlements are detailed below: 7.4.1 Land (Communal) Loss entitlements17 226. As per master plan of the Torkham BCP about 59.3125 acres of the land will be required to construct new trade terminal and allied facilities, in which 5.3125 acres for passenger terminal and 54 acres for the trade terminal. In the passenger terminal 3.125 acres land is communal land while remaining is under the control of political administration, NADRA and Custom. Negotiations of the passenger terminal communal land 3.125 acres are under process and as per survey most of the area of this land is barren, however, few vacant shops exist on it. Structure compensation of the shops will be paid to the APs and this 3.125-acre communal land will be leased as per local tradition for the proposed project. Khuga Khel tribe is willing to lease this land for the project and negotiations has been started with the representatives of the tribe. Hopefully this land will be acquired as the previous 37.5 acres land acquired on 99 years lease for trade terminal. Due to barren land locals have no objection on leasing this land. Leasing of this 3.125 acres tribal are likely to be completed by 30 November, 2018 and agreement will be signed with the Khuga Khel tribes. As per local administration no private land will be affected due to the proposed project in the trade and passenger terminal areas. 227. Of the trade terminal total required land is 54 acres in which 37.5 (66%) acres is communal land which is owned by three clans of Khuga Khel clan of Shinwari Pashtun tribe and this land has been leased for 99 years from the Khuga Khel tribe against the amount of Rs. 20 million with the annual increase of 5%. The 16.5 (34%) acres land is already leased by the army to the tribe. NOC of this Army land has been issued by the relevant department of Pakistan Army (attached as annex-II) 228. The consensus arrived in November 2016 on land lease and allowances as under; g) Communal land will be leased out for 99 years for Rs.2018 million per year, with 5% annual increase. The lease agreement is renewable; h) Annual lease payment will be made in the name of Jirga Committee for the project;

17In case of land for each category, lease agreement rates or sale rates to be finalized through consensus between PA and tribe leaders/community elders, while in case of other assets/ structures, trees etc. either consensus rate or the current market rates for construction of structure of similar type and dimensions.

Page | 83 i) 432 kanal communal land will be leased under the agreement that includes 132 kanal already leased to the Pakistan army and 300 kanal for trade terminal; j) Consensus also built on allowance/toll for each freight vehicle using the trade terminal. The NLC will charge Rs.2500 for each vehicle of which Rs.600 per vehicle will be paid to Jirga Committee through the PA; k) The replacement cost of structures will be paid on consensus rates; in addition to this the service structures will be provided alternate land within the designed space of the trade terminal; and l) Tribal communities will be provided employment opportunities within the new terminal facilities.

7.4.2 Residential and Commercial Structure Loss (Communal Land) 229. Residential Structure Loss To minimize the impacts on residential structures and subsequent displacement, acquisition of land through the built-up area is avoided and during detailed design phase efforts will be ensured to fit all project works in the acquired land and further minimize impacts if possible. As per final design,7residential structures are identified on communal land under acquisition. Along with land compensation as per entitlements discussed above following compensation entitlements will apply for residential structures owners to ensure compensation is on full replacement cost. . Compensation of structure on full replacement cost calculated on prevailing market rates to construct new structure of same type and dimensions. Out of 7 households occupying residential structures, 1 has self-relocated on adjacent communal land. Remaining 6 households occupying residential structures are migrants from Kurram Agency about 15 years ago and are living on communal land free of cost with the permission of Khuga Khel tribe. These six households19 prefer to self-relocate to Torkham village or elsewhere on award of compensation for their residential structures. Cash compensation on replacement cost i.e. based at the valuation rate provided by Building Department, Khyber Agency, FATA provided to the affected household elder through Political Administration. Based on the cost estimation of the Building FATA Sub-division Landi Kotal total cost of the affected 7 houses is Pak Rs 7.094 million. . Salvage material will be the property of the AP and no salvage cost will be deducted from the amount of compensation. . One-time transportation/shifting allowance of@ Rs. 30,000 on lump sum basis to cover transportation cost and shifting of the salvage material and belongings to a site selected by the AP. . Livelihood assistance allowance equal Pak rupees to lump sum 6months of minimum wage declared by the government i.e.Rs.15000 or lump sum to cover livelihood loss during construction of house.

 Compensation for shifting of water supply for 6 houses and 1 house eligible for electricity allowance. The owner of the residential structures will be given 01month advance notice for vacating affected structure at the time of payment of compensation amount.

19 These six houses are owned by 4 brothers and 2cousins, represented by Mr. Azam son of Habib.

Page | 84 7.4.3 Commercial Structure Loss (Communal) 230. Based on the census and detailed measurement survey carried out by the building department sub-division Landi Kotal, FATA 68 commercial structures (including 4 rooms) will be affected. Of these, 47 structures are located in the trade terminal. At the passenger terminal, 09 shops, 3 markets (10 shops) communal shops owned by the Khuga Khel clan will have restricted access due to the enclosed pedestrian lanes to be provided along the road. All the structures are on the communal land. To compensate loss of shops, following entitlements will apply: . Commercial structures located in the trade and passenger terminals are constructed by the different persons on the communal land who are running their business in the area. People of Khuga Khel tribe running businesses in the commercial establishments pay monthly to the elders of the local tribe (as per local tradition) for the collective benefit of the Khuga Khel tribe. . Allotment of shops to the APs in the proposed business center for commercial structures will be decided at later stage in consultation with the representatives of the local Tribe. . Compensation of the structures will be paid to the APs. However, 37.5 acres land has been leased from the Khuga Khel tribe for an amount of Rs. 20 million annually with a 5%. This amount will be paid to the tribe elders and equally distributed to the tribal people as per their culture. . APs are receiving compensation of the structures and other allowances as per ADB policy and land lease amount also. Based on the cost estimate of the affected infrastructure provided by the Building FATA Sub-division Landi Kotal is Pak Rs. 61.859 million. . Compensation for shifting of water supply for 6 houses and electricity compensation all the affected APs.

7.4.4 Tree Losses 231. The entire land is unproductive hilly barren land with no agricultural activity, however in the acquired land sporadic tree plantation was observed. All the affected trees are on the communal land. Compensation for trees will go to community on replacement cost as below: . Non-fruit trees: The compensation is to reflect the market value of tree’s wood content, based on the girth of trunk at current market rates. The compensation for tree grown by affected households will go to the elders of the household while trees grown on communal land will go to community through maliks.

7.5 INCOME RESTORATION AND REHABILITATION ASSISTANCE FOR LOSS INCOME. 232. The following constitutes the income restoration and rehabilitation assistance for the APs losing their employment due to this project:

7.5.1 Loss of Source of Income 233. 34 APs in business category whose business is in operational form and their livelihoods will be affected. They are supported for income losses for a period of 6 months as transitional support to facilitate the APs to re-establish their business at replacement sites. The compensation entitlements for lost business or income will be as under in addition to entitled compensation of lost assets:

Page | 85 . For permanent income loss the compensation for 6months period calculated on actual basis on production of some valid documentary proof or in absence of such documents equal to government announced minimum wage rate i.e. Rs. 15000.Out of the total 52 APs (excluding 11 non-operational shop owners, 7 house owners) remaining 34 APs will lose their source of income permanently. Therefore, they are eligible for 6months allowance. As per census survey average monthly income of the grocery shops and tyre repairing shops are Rs.30,000, and hotels earn per month about 50,000. . 33 affected persons falling in employee category will be compensated for lost income due loss of livelihood source for a period of 03 months based on government announced minimum wage rate i.e. 15,000.

7.5.2 Project–related Employment 234. The Steering Committee on Integrated Transit Trade Management System (ITTMS) the apex body in its meeting (February 2015) headed by the Finance Minister of Pakistan has decided that the local community will have first right to employment (class IV) in improved border crossing point at Torkham. Besides this high-level commitment to provide employment in BCP facilities, there will be employment opportunities during construction phases of the project as well. Hence, to provide livelihood opportunities, vulnerable groups in particular and the affected households losing land in general, will be given priority for project–related employment during construction phase of the project as well. To this end specific provisions will be included in the bidding documents to ensure the APs and vulnerable people are provided construction-related employment as per their skills. 7.5.3 Relocation Assistance for Structure Owners (Residential and Commercial) 235. All APs facing loss of residential and commercial structures will be assisted by providing transportation to shift their salvage material, belongings and family members to relocate to a site of their choice or relocation assistance to meet transportation cost for shifting. Following compensation will be provided as relocation and rehabilitation assistance. . For loss of rented in business structure rental assistance for 06 months period will be paid to APs doing business in rented in shops either at the rate of rent being paid on production of rent payment receipt or on lump sum @ rate of Rs. 8,000/per month. . One-time shifting allowance @. 30,000 on lump sum basis for household facing structure loss and Rs. 30,000 for business operators to relocate his belongings from affected structures as determined during the public consultation sessions.

7.6 ENTITLEMENT MATRIX 236. Based on the eligibility criteria described above, the entitlement matrix for LARP Torkham has been developed in Table 7.1 below. Consultation/negotiation between the APs and the government for leasing 25 kanals for the passenger terminal is in process but not concluded yet. It is hoped that similar agreement from the currently leased land can be reached with the Khuga Khel tribe. Therefore, based on the previous lease agreement, cost of this land has been calculated. Table 7.1: Entitlement Matrix for LARP Torkham

Asset Specification Affected People Compensation Entitlements . 37.5 acres have been leased for 99- years against the Rs.20.00 million per year, with 5% annual increase. The Communal lease agreement is renewable; land

Page | 86 Asset Specification Affected People Compensation Entitlements (Barren/hilly . First installment of these land lease terrain and Khuga Khel amount has been paid to the Khuga occupied by Clans of Khel tribe through political commercial Shinwari tribes administration Landi Kota. structures . Annual lease payment made in the (Shops, hotels, name of Jirga Committee for the tyre repairing project; shops, saloon 20 . Allowance/ toll for each freight vehicle Land etc.) using the trade terminal. The NLC charged Rs.2500 each vehicle of 59.3125.0 which Rs.600 per vehicle is being acres including paid to Jirga Committee through the 16.5 acres Political Agent; already leased21 to the . 16.5 acres Army lease land to leased Pak Army and for 99 years and Army has issued 37.5 acres NOC to FBR to use this land for the communal land proposed project; for trade

terminal. . 3.125 acres communal land of Khuga (2.18 acres is Khel tribe to be leased for 99 years as already owned per local tradition (hopefully based on by gov’t, and same arrangement as with the 37.5 will only be acres of land above) transferred to the project from . In case additional land is acquired on relevant lease: Cash compensation as per agencies) agreed terms and conditions of lease agreement between the Communal Jirga and Political Administration will be paid.

. Cash compensation at replacement 7 affected rates for affected structure; 7 residential extended Compensation for other fixed assets Structures families/ free of salvaged materials households depreciation and transaction costs. owning the (Compensation will go to elder of Structures affected household.) structure . Compensation for shifting of water supply for 6 houses and 1 house eligible for electricity allowance

. Cash compensation at replacement rates for affected structure calculated by the Building department, Landi Kotal will be paid to APs; compensation for other fixed assets 68 commercial 45 APs of free of salvaged materials, structures affected depreciation and transaction costs. commercial_ (Shops, hotels structure . Plus compensation for utilities kiosks, petrol (electricity) free of depreciation and pump, weigh transaction costs will be provided to station, etc.) the APs for reconstruction of structure at their own behalf and salvage material is allowed.

20For land losses (communal) land lease for 99 years 21 16.5 acres land is already leased to the Army for 99 years

Page | 87 Asset Specification Affected People Compensation Entitlements . Non-fruit trees: The compensation is All trees are on to reflect the market value of tree’s Trees Trees affected communal land wood content, based on the girth of (38 non-fruit and in trunk at current market rates (The trees) ownership of compensation for trees on collective Khuga Khel tribe barren land will be provided to the Khuga Khel tribe) Compensation has been calculated by the Forest Department Khyber agency.

Business Business . (i) Cash compensation equal to 6 Loss/ Losses due to months income on production of Employment/ loss of some valid documentary proof or livelihood commercial equal to government announced loss structure 34 Operational minimum wage rate i.e. Permanent business Rs.15,000/month x 6 months (if business loss owners without documentation). due to LAR . Plus rental assistance (6 months period) either at the rate of rent being paid on production of rent payment receipt or on lump sum @ rate of Rs. 8,000/month for business owners renting/leasing the structure. . Advance-notice (minimum 1 month) to re-establish business on replacement place before dismantling the existing to avoid interruption in facility and business.

Employment Employees of  Cash compensation (03 months loss due to affected hotels period) equal to government- LAR and shops announced minimum wage or construction losing their jobs i.e.15,000/month x 3 months in case activities as a result of employment loss. dismantling of  Employment priority in project- these structures related jobs that match their skills (33 Employees) One petrol _3_ business . Cash compensation at replacement pump and 2 owners rates for affected of these structures weigh stations calculated by the Building department, Landi Kotal will be paid to APs; compensation for other fixed assets free of salvaged materials, depreciation and transaction costs.

. Plus compensation for utilities (electricity) free of depreciation and transaction costs will be provided to the APs for reconstruction of structure at their own behalf and salvage material is allowed.

Relocation Transport/ 7 relocating . Provision of sufficient allowance to transition extended cover transport expenses for livelihood costs families/ transportation of salvage material and households belongings to relocation site. For the project the allowance has been set at Rs.30,000 per household. . Livelihood Assistance Allowance equal Pak Rupees lump sum of 06 months of minimum wage declared by the government or lump sum to

Page | 88 Asset Specification Affected People Compensation Entitlements cover livelihood loss during construction of house. . Advance notice for 01 month minimum to relocate out of project site.

APs . A lump sum shifting allowance of Rs. 30,000 for each commercial structure will be paid except petrol pump and weigh stations. . Due to large scale structures petrol pump will be provided lump sum shifting allowance Rs. 90,000 and each weigh station this allowance is Rs. 70,000.

Public Affected public Appropriate . Relocation and installation costs for 8 utilities Utilities/ Department Electric pools and 1 transformer and Affected other similar immovable assets if any community as project component. assets (8 electric poles and one transformer) Vulnerable 4 vulnerable . Vulnerability allowance equivalent to AP households 03 months minimum wage rate livelihood announced by the government over and above other entitled compensation; and . Employment priority in project-related jobs.

Unanticipate . Unanticipated impacts if identified at d Impacts during implementation of the project will follow the entitlement provisions listed above and ADB SPS, 2009 requirements.

Page | 89 SECTION8

RELOCATION, REHABILITATION AND INCOME RESTORATION

8.1 GENERAL

237. This section describes options for relocating housing and other structures such as shops, kiosk, hotels including replacement cash compensation, and/or self-relocation; outlines measures to assist affected persons for establishing at new sites; describes income restoration programs, including multiple options for restoring all types of livelihoods and describes special measures to support vulnerable groups and women. 8.2 RELOCATION OF APs 238. During the census survey, the proposed relocation strategy was discussed in detail with the house owners and owners of other structures during the consultation process. The APs showed their willingness to relocate themselves to a new place on their own. They will rebuild their structures at their own out of the compensation money given by the project as per their convenience by purchasing land in the same vicinity or in Landi Kotal city to re- establish their business. In view of this limitation, the following relocation strategy has been adopted. 239. The land acquisition impacts for proposed IBSP at Torkham Border considerably in the communal land only. Of the total land to be acquired, 59.3125 acres communal, shamlat and political administration land. All the affected land is communal, shamlat and political administration ownership. Total affected structures is 75 in which 54 will be affected in the trade terminal and 21 affected in the passenger terminal. 240. The structures located on the acquired communal land in the trade terminal area including 54 shops in which 11 hotels,25 kiosks (grocery/tyre shops),2 tyre repair shop,2 rooms, 3 tandoor, 1 saloon, 1 petrol pump, 2 weigh stations, (communal) and 07residential structures will be affected to an extent of 100% and will be relocated/shifted due to project activity. All the shops and houses on the communal land are privately constructed by the APs.. The relocation/shifting options were discussed in detail with the owner of the affected houses and other structures during consultation process. Cost of the 07 houses in the trade terminal area out of which 6 katcha houses and 1 semi pacca is calculated as Pak Rs. 7.094 million22. However, the use of land for the project will impact residential structures of 07 households and 47operational commercial structures for trade terminal including, grocery store, tyre repairing shops, saloon, hotels, 2-rooms, 2-weigh stations and one petrol pump which are located along the road (N-5) leading to Torkham Border Crossing Point. In the proposed passenger terminal area 09 shops, 3 markets (10 shops) and 2 katcha room will be affected. Out of the 21 commercial structures in passenger terminal area only 1 shop is operational. Cost of the 02 katcha rooms in the passenger terminal area is calculated as Pak Rs. 0.67 million23.All affected shops owners will be provided different allowances as per bank policy because their livelihood affected and due to impacted shops they will suffer income losses. Accordingly, as per compensation entitlements following relocation strategy has been adopted.

22 Cost calculated by Building FATA Sub-division Landi Kotal 23 Cost calculated by Building FATA Sub-division Landi Kotal

Page | 90  The Occupants of the residential structures will be compensated for the total structure loss at replacement cost on prevailing market rates to construct new structure of same type and dimensions.  Salvage material will be the property of the AP and no salvage cost will be deducted from the amount of compensation;

 One-time transportation/shifting allowance of @ Rs. 30,000 on lump sum basis to cover transportation cost and shifting of the salvage material and belongings to a site selected by the AP;  Livelihood assistance allowance equal Pak rupees to lump sum 6 months of minimum wage declared by the government i.e.Rs.15,000 or lump sum to cover livelihood loss during construction of house.  Compensation for shifting of water supply for 6 houses and 1 house eligible for electricity allowance. The owner of the residential structures will be given 01 month advance notice for vacating of affected structure at the time of payment of compensation amount.  While business operators will be paid business/transitional allowance equal to 06 months income losses on production of tax record or equal to minimum wage rate announced by the government if the tax record is unavailable.  Transport facility or transportation allowance for shifting of salvage material and belongings of the AP to a site of their choice.

 The owner of the residential structures will be given 01month advance notice for vacating the affected structure at the time of payment of compensation. 241. The structures located on the communal land include two weigh bridges and one filling station with service area for truckers and freight vehicles that use existing border facilities for cross border movement. As these commercial structures have a direct link with operation of existing border crossing facilities, these three structures will have to be kept in operation not only during construction phases of the project but there after as well. These structures will be adjusted in the improved border crossing facilities by providing replacement land on secure tenure basis for their relocation. Accordingly following relocation strategy is proposed for these three important commercial structures to ensure that the available services for existing BCP operation and local community are not disrupted and compromised:

 Replacement cost of the 1 petrol pump and 2 weigh stations concluded by Building FATA Sub-division Landi Kotal Pak Rs.40.826 million based compensation of structure including cost for relocation of installation and establishment of similar facility at replacement land designated for the purpose.

 Adequate time will be given to establish the facility at the alternative site. The existing business will kept in operation to provide uninterrupted services and supplies to the transport and fright using the BCP. 8.3 REHABILITATION OF APs 242. Entitlement provisions for the APs losing land, structures; and income losses and rehabilitation subsidies include provisions for land losses, house and buildings losses, trees losses, a relocation subsidy, and a business losses allowance based on their average income as per census survey. Each category of affectees is described in more detail as follows:

Page | 91 8.3.1 Communal Land 243. A total of 37.3 acres has been acquired for trade terminal from the three clans that jointly own the communal land planned for acquisition under BSIP Torkham. However, for the acquisition of 25kanals land for passenger terminal is in process. The 03-member Jirga with three representatives of each of the three clans is engaged in a negotiation process with the Government’s Committee on LAR Torkham chaired by the PA, Khyber Agency. The clans have decided to lease out their land to the government for the Project. Once the terms of a rental lease agreement have been finalized, the EA will ensure that the agreed final rates and the prescribed period are followed and the interests of the three clans are protected. As per agreement between the three clans, the final compensation will be shared amongst them based on the existing agreed sharing formula of the three clans.24 Clan representatives will divide the compensation amongst all heads of family. The residential and commercial structures on communal land will also be compensated on replacement cost basis. In case of residential structures, transportation allowance, transition allowance and utilities expense will be covered under the project budget. 8.4 APs INCOME RESTORATION 244. The project envisages the construction of facilities by acquiring minimum required area avoiding involuntary resettlement as much as possible. During planning of LAR the prime focus was to ensure minimum impact on income generating sources of affected person. Besides, the AP’s losing business structures will be preferred to provide replacement business place in the service areas proposed in the project design. Due to limited business potential near security sensitive border location, the commercial/business structures are non-existent and the major source of livelihood for locals and affected population are the import and export processing areas in existing border crossing trade terminal. The implementation of construction works for new import and export processing areas are planned to be carried out in such a way that the operation of existing terminal are not hampered and the major livelihood source of the locals and affected population is intact. All livelihood and income restoration activities will be implemented as given in the entitlement matrix. The following constitutes the income restoration strategy for this project for APs who suffer livelihood losses. 8.4.1 Income Loss/Livelihood Allowance 245. The project has a significant impact on income from businessman and shopkeepers which are compensated and taken care off in entitlement provisions. It is apprehended that the 33 employees will lose their income/livelihood source due to loss of commercial structure. To restore any such loss of income all AFs whose livelihoods are affected will be supported for their income losses calculated based on the minimum wage rate announced by the government for a period in which they are unable to attain their routine livelihood earning activities which could be up to 03 months maximum. 8.4.2 Transitional Support Allowance 246. Transition allowance should be provided to the commercial operational APs to ensure that standards of living of all affected persons is improved or restored to at least their pre-project levels, To compensate for business interruption period, in addition to compensation for their lost assets a transitional allowance equal to 06 months (permanent business loss) will be provided on actual loss on production of tax payment record or calculated based on

24Currently, the three clans share all income/profit from communal land based on the 1976 population of the three clans.

Page | 92 government announced monthly wage rate for respective period as per entitlement provisions. A total of 34 business owners have been identified facing permanent loss due to loss of their structure/shops. 8.4.3 Project Related Employment: (For Unskilled and Semi–Skilled Tasks during Construction) 247. At construction phase of project job opportunities related to construction works and allied services will be created for local community for both semi-skilled and unskilled workers. The affected persons in general and the vulnerable will be given preference to project related employment during construction phase. To this end specific provisions will be included in the bidding documents to ensure the affected persons and vulnerable people are provided construction related employment as per their skills. The progress of the employment provided will be monitored during construction phase. 248. (For Unskilled and Semi–Skilled Tasks during Operation): The operation of new facilities will require engagement of additional staff for watch and ward of the new terminal and operation of the facilities. To this end the government has already decided in the meeting of Steering Committee held in February 2015 to prefer hiring suitable persons(as per skill) from local community. With the new facilities, trade between Pakistan and Afghanistan through Torkham will increase manifold and will require additional human resource. Hence in services sector, more job opportunities for both unskilled and semi- skilled workers will be generated. Besides, due to peculiar security sensitivity along border locations and perceived social conflicts between locals and outside workforce, the locals are preferred. With this potential, improved trade terminal is likely to accommodate most of the unskilled and semi-skilled workforce of the affected area. 249. The designed facility also includes service areas within import and export processing units where space for auto mechanic facilities, small canteens and snack stalls will be provided. During operation phase, such facilities will be provided to the willing members of affected households at secured tenure basis for augmenting their livelihood earning and improve living standard. The compliance to this effect will be monitored and reported in post construction evaluation of the LARP implementation.

Page | 93 SECTION 9 RESETTLEMENT BUDGET 9.1 GENERAL 250. This section provides the indicative compensation cost for land acquisition, building structures and rehabilitation of the affected. For this purpose, concerned Government Khyber Agency Departments i.e. Building FATA Sub-Division Landi Kotal, Forest Department Khyber Agency, Revenue were involved. Efforts were made to work out realistic cost estimates/values that are applicable for fair compensation to the affectees on replacement cost basis for affected communal and private land with other assets at Torkham. For this reason, local Jirga authorities & concerned government departments were consulted and market surveys were carried out to evaluate and apply unit rates based on the ground realities. 9.2 COMPONENTS OF THE COST ESTIMATES 251. All the land to be acquired and land-based assets/structures falling in the right of way have been identified and listed. In case, the affected part of the building structure is substantial and becomes of no use to the owner, would be compensated fully. In addition to this, resettlement and rehabilitation costs for the affected and costs of communal and private assets have been estimated. 9.2.1 Compensation Costs (CC) 252. Compensation costs (CC) includes the cost of land and commercial structure, wood and fruit trees, crops, transitional period assistance and shifting charges for the affectees falling within the project area. 253. Quantification of all these items has been made based on the data collected through physical measurements conducted in the field. The affected structures have been categorized based on construction material used. Quantities and costs have been developed in consultation with local authorities. 9.2.2 Land Acquisition Costs 254. As the 300 kanals has been acquired on 99 years lease against Rs. 20.00 million yearly with the increase of 5% annual for the proposed project while acquisition of the 25 kanals land for passenger terminal is in process. After the final agreement this cost will be updated. The compensation for communal land occupied under residential structures will go to household elder while compensation of communal land will go to the tribe (Khuga Khel clan) through respective maliks/elders as per their customs and traditions. 9.2.3 Cost of Affected Structures 255. While during construction of the project, total 54structures for trade terminal including 44communal shops, 3 commercial structures (01 Petrol Pump and 02 weigh stations) and 7 residential structures of different construction types will be impacted. Similarly, for passenger terminal 9 shops, 3 markets (10 shops) and 2 katcha room will be affected. Depending on type of construction the estimated compensation cost on replacement value is worked out as Pak Rs. 61.859 Million. APs of these affected structures would also be allowed to take their salvage material. Moreover, no depreciation cost was considered while estimating structure prices. As per ADB policy affected kiosk will provide transition allowance. However, affected shops will be provided compensation of the structures. This assessment carried out by the Building FATA Sub-Division Landi Kotal,

Page | 94 Khyber agency. Compensation for residential structures and the commercial structures will go to respective structure owner. Table 9.1 – Summary of Affected Structure Costs in Trade Terminal Area Cost Pak Sr. Pacca Semi Description Quantity Katcha Rs. No. Structure Pacca (million)

Kiosk (General Store/Tyre 1 25 0.75 Repairing)

2 Tyre Repairing Shop 2 1 1 0.192

Hotels and 3 11 1 10 2.142 One Grocery Store 4 Saloon 1 1 0.232 5 Tandoor 3 3 0.22 6 Rooms 2 2 0.199 7 Weigh Station 2 2 5.972 8 Petrol Pump 1 1 34.854 9 Houses 7 1 6 7.094 Total 54 10 12 7 51.655

Table 9.2 – Summary of Affected Structure Costs in the Passenger Terminal Area

Sr. Pacca Semi Cost Pak Rs. Description Quantity Katcha No. Structure Pacca (million)

1 Shops 9 9 0 0 7.144 Markets-3(10 2 10 7 3 2.42 Shops) 3 Katcha Room 2 2 0.67

Total 21 16 3 2 10.234

9.2.4 Tree Losses 256. As per impact inventory fruit trees are not identified in the project site. The project will impact 38 wood trees (non-fruit) are on unoccupied communal land. Table 9.3 shows the number and cost of affected non-fruit and fruit trees. The total cost is worked out to be Pak Rs. 1,220,320. Cost for wood trees is valued on the girth of trunk on wood volume bases at current market rates. The compensation will be paid to the household elder in case the tree are grown by the affected house hold while compensation for trees grown on unoccupied land will go to the Khuga Khel clan through Malik/elders as per local customs and traditions. Table 9.3 - Summary of Affected Non-Fruit/Wood Trees

Sr. No Species Total Cost Pak Rs.

Non-Fruit (wood) Trees 1 Acacia Nilotica (Kikar) 8 372,000 2 Mulberry 1 27,400 3 Eucalyptus 29 820,920 Total 38 1,220,320

Page | 95 9.2.5 Business/Transition Allowance 257. Provide transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income-earning capacity. To facilitate the moving and settling in process, a transition allowance will be paid to all the operational commercial structures APs. These structure owners are paid costs for other fixed assets to re-establish their commercial structures at an alternate place as shifting charges at the rate of Pak Rs. 34.854 million for petrol pump and Pak Rs. 5.972 million for the weigh station calculated by the Building FATA Sub-division Landi Kotal. The total compensation cost for shifting charges of the three structures is PKR. 40.826 million. 258. Besides above, 4525 impacted operational commercial structures having ownership of the 31 persons. All these affected operators require sufficient time for shifting their business in other or replacement shops. Accordingly keeping in view business loss all such business operators are compensated for their businesses losses during the period of interruption. They will be entitled for the business loss for the transition period of 6 months calculated on minimum monthly wage rate (i.e.15,000) which comes Rs.5.13 million and a rental assistance (48 commercial and 6 houses) allowance for a period of 06 months calculated on actual bases as per paid rent or @ Rs.8,000 if rental receipts are not produced which amounts to Rs.2.59 million. The total amount of cash compensation for transition support to the 46 shops, hotels, tandoor and parking stand proprietor is estimated as PakRs.7.72 million.

9.2.6 Cost of Shifting Public Infrastructure 189. The 8 electric poles and one transformer in the project area will be relocated. The cost of shifting of these poles is Rs 0.8 million. The amount will be transferred in the account of concerned department as per the agreement. 9.2.7 Lost Income/Livelihood Allowance 259. According to the census survey, 07 residential structures will require relocation and the affected household may face livelihood interruption during construction of new houses at replacement land. So all the households are compensated for livelihood assistance for a period of 06 months based on government announced minimum wage rate 2017 i.e. Rs. 15,000. The total amount of cash compensation for Pak Rs. 0.63 million is estimated under this head. Affected Employees Allowance 260. There are 33 employees are being affected whose are working on the hotels and shops. They will be eligible 03 months allowance at minimum govt. wages Rs. 15,000. The total amount of cash compensation for Pak Rs. 1.49 million is estimated under this head. 9.2.8 Transportation/Shifting Allowance 261. All APs falling in residential structure owner category and the business operators of rented in shops will be assisted by providing transportation to shift their salvage material, belongings and family members to the relocation site or relocation assistance to meet transportation cost for shifting. One-time shifting allowance @ 30,000/- on lump sum basis for business and affected structures will be paid to the75 affected structures owners.

25 In the passenger terminal out of the 21 only 1 shop is operation while other shops are vacant. Therefore, these 20 shop owners will not be eligible transition and rental allowances.

Page | 96 Provision has been made for transportation allowance and estimated to be Pak Rs. 2.39 million.

9.2.9 Vulnerable People Allowance 262. As per census, 04 affected household have disabled members in their family and are taken as vulnerable. They will be provided with additional allowance equivalent to 03 months minimum wage rate announced by the government over and above other entitled compensation under LARP entitlements for their lost assets. Further they will be preferred in project related employment. The cost estimation of vulnerability allowance is estimated to be Rs.180,000 (0.18 Million).

9.2.10 Electricity and Water Supply Allowance 263. The APs owning74 commercial enterprises will provide electricity connection allowance at their new place of shifting at the rate of Rs. 15000/connection. Provision has been made for new electricity connection for those APs who currently have electricity connection. Affected houses will be provided water supply allowance i.e. Rs. 0.07. The electricity connection charges e estimated at Rs.1.11 million is proposed to be paid. 9.2.11 Monitoring and Evaluation 264. Monitoring and evaluation of the LARP implementation process is required for fair compensation. A sum of Pak Rs.3.86 million is provided in the budget @ 5% of total cost. 9.2.12 Administration Cost 265. Administration cost for the implementation of LARP is also required and provided in the budget amounting Pak Rs. 0.77 million @ 1% of the total cost. The cost will be incurred to meet expanses (if any) required for logistic and administrative arrangements during implementation of LARP provisions. 9.2.13 Contingencies 266. Contingencies cost @10% has been added to cover various unforeseen/ contingencies expenditure for LARP implementation and inflation which amounts to Pak Rs. 7.71 million. 9.2.14 Taxes 267. Federal or provincial taxes are not applicable on any item included in compensatory package. 9.3 SOURCE OF FUNDING AND MANAGEMENT 268. As per LARP entitlements, he compensation package include, compensation cost on replacement cost bases for impacted asset (land, structures and trees), relocation, rehabilitation and income restoration costs to ensure resettlement and rehabilitation of the affected households. All Compensation costs as identified in the LARP will be taken from government resources allocated for land acquisition and resettlement in the PC-I for improving border services project. In this regard, 550 (five hundred and fifty) million rupees are provided in PC-I that will be placed at disposal of the Project Director PMU. 269. For compensation delivery, a compensation disbursement committee headed by Project Director PIU will be notified to ensure transparency in compensation disbursement. Compensation will be delivered through cross cheques in the name of the entitled person. All compensation claims will be reviewed and verified by Resettlement Specialists of CSC and PMC as per entitlement provisions of resettlement plan. Afterwards, disbursement cheques, jointly signed by Project Director and Accounts officer, will be prepared and

Page | 97 delivered to APs in person through compensation disbursement committee. APs who show unwillingness to open bank accounts due to smaller compensation amount or non- availability of Bank in nearby vicinity, his compensation will be delivered through bank account of legal Attorney duly nominated by respective AP, after due verification of record. Fees, levies or depreciation costs will not be charged for delivery of compensation cheques. A computerized database for LARP implementation will be managed and complete record for compensation delivery with support documents (original) will be maintained as hard copies for ADB’s review. However, in case negotiated land acquisition is unsuccessful, the BOR assessed land cost will be deposited in treasury as and when required so for completion of land acquisition process under LAA provisions while the compensation costs other than land costs not covered under LAA provisions i.e. compensation costs for resettlement, rehabilitation and income restoration will be directly delivered by the PIU. 9.4 LARP IMPLEMENTATION BUDGET ESTIMATES 270. The summary of total estimated funds for compensation costs, rehabilitation, and mitigation cost amounting to Pak Rs. 89.44 Million26 is given in Table 9.5. With these financial provisions, satisfaction of the APs is ensured and the grievances would be minimized. Table 9.5 SUMMARY OF BUDGET No. of Unit Cost Area Sr.No. Description of Item Affected Cost in (PKR. Unit Structure PKR Million) Cost of Affected Houses 7 7.09 Cost of Rooms (2 Pacca and 2 4 0.87 katcha) Cost of Affected Hotels, Shops and 61 13.10 A others Re-establishment of Petrol-pump 1 34.85

Re-establishment 2 Weigh Bridges 2 5.97 B Tree Losses 38 1.22 C Business/Transition Allowance

Business/Transition Allowance 06 i 45 15,000 4.05 months (Commercial proprietors)

Business/Transition Allowance 06 ii months (Commercial proprietors 1 3 60,000 1.08 Petrol Pump and 2 Weigh stations)

06 Month Rental Assistance iii (Commercial and 6 Residential 54 8,000 2.59 Proprietors)

26 Excluding land lease cost from Tribe for Passenger and Trade Terminals

Page | 98 Lost Income Allowance 06 months D 7 15,000 0.63 (Residential structure owners)

Transportation/Shifting Allowance E 72 30,000 2.16 (One time Lump Sum)

Transportation/Shifting Allowance F 1 90,000 0.09 Petrol Pump (One time Lump Sum)

Transportation/Shifting Allowance 2 G 2 70,000 0.14 weigh stations (One time Lump Sum)

H Electricity Connection Allowance 48 15,000 0.72 Water Supply Allowance I 7 10,000 0.07 (7 Houses)

J Cost of Shifting Public Infrastructures 8 100,000 0.80

3 month Allowance to Affected K 33 15,000 1.49 Employees

Vulnerable People Allowance L 4 15,000 0.18 (03 months)

SUB-TOTAL 77.10 (A+B+C+D+E+F+G+H+I+J+K+L)

Monitoring and Evaluation @ 5% of M 3.86 SUB-TOTAL Administration Cost @ 1% of SUB- N 0.77 TOTAL TOTAL (M+N) 4.63 O Contingencies @ 10% of the Total 7.71 GRAND TOTAL (M+N+O) 89.44

Page | 99 SECTION – 10 INSTITUTIONAL ARRANGEMENTS

10.1 INSTITUTIONAL REQUIREMENTS 271. The Federal Board of Revenue (FBR) is the Executing Agency (EA) for Improving Border Services Project to implement integrated trade and transit and foster the envisioned benefits of regional trade through Pakistan’s Borders. Keeping in view the role of different stakeholders including government departments in financial management, revenue generation, operation of trade and transit routes and on border crossing point security checks for both passengers and freight crossing over; a high-level decision taking steering committee is constituted by the Government to implement the “Integrated Transit and Trade Management System (ITTMS) project. The ITTMS steering committee has been mandated to assign specific roles to different stakeholders and oversee finalization of the planned targets and coordinate with development partners for soliciting their technical and financial support. The compensation and rehabilitation components in this LARP follow a distinct set of procedures to be executed by different stakeholders. These processes will be implemented through a combination of established institutional and project-specific institutional arrangements. The Federal Board of Revenue (FBR) and National Logistic Cell as the Executing Agency (EA) and Implementation Agency (IA) respectively, and Office of the PA, Khyber Agency constitutes the major bodies that will coordinate to ensure implementation of the LARP for Torkham BCP. 10.2 FEDERAL BOARD OF REVENUE (FBR) AS EXECUTING AGENCY (EA) 272. As the EA, FBR has overall responsibility for project implementation including acquisition of land and other assets in compliance with ADB’s Safeguard Policy Statement (SPS) 2009. A project-specific Project Management Unit (PMU) along with three regional coordination offices designated as sub PMU at each BCP level with required technical, financial and administrative authority is being established in the FBR with a mandate of management role and employer under FIDIC conditions. On behalf of FBR, the PMU will be the responsible institution to oversee the safeguards implementation progress of improving border services project. PMU’s safeguards management roles and responsibilities are discussed in sections below. 273. At the border crossing point level, the National Logistic Cell (NLC) is already operating existing trade terminals in the available land owned by the NLC. Hence keeping in view the NLC’s role in border management and operating of existing terminals the ITTMS Steering committee in its meeting dated 25 February, 2015 assigned the role of project implementation unit to NLC for site supervisions of day to day activities and acquisition of additional land for the project. Hence, at Torkham the safeguards management responsibility will reset with PIU who will be responsible for day to day planning, implementation and monitoring of LARP implementation. 10.3 POLITICAL ADMINISTRATION KHYBER AGENCY UNDER FATA REGULATIONS 274. Besides the above institutional arrangements, the tribal nature of the project area calls for arrangements specific to the tribal areas. Under FATA regulations, not only does the Political Administration bear the responsibility for general law & order situation in the area, they are well-versed with the tribal systems under their control and thereby are able to play a pivotal coordination role between the project executants and the local Jirga. It necessitates the involvement of the Political Administration at all levels of the project cycle including preparation, implementation, conflict resolution and monitoring. Based on project

Page | 100 locus in FATA, the LAR and IR affairs could only be dealt with direct involvement of the Office of the Political Agent (PA), Khyber Agency and Office of the Assistant Political Agent (APA), Landi Kotal. Hence, the PA, Khyber Agency will provide coordination support as facilitator at the PMU level while the Assistant Political Agent, Landi Kotal will perform the necessary functions at sub PMU and PIU level to facilitate the project executors during land acquisition, LARP preparation, implementation and monitoring as well as resolution of grievances if any. These arrangements will be managed by a series of project-specific coordination committees including the Project Implementation Committee at PMU Level, Land Acquisition and Resettlement Coordination Committee and Grievance Redress Committees at the sub PMU/PIU level. The institutional arrangements proposed/required for effective delivery on safeguards management is discussed in sections below. 10.4 PROJECT MANAGEMENT AND IMPLEMENTATION UNITS 275. For implementation of the Improving Border Services Project a Project Management Unit (PMU) will be constituted in the FBR to supervise over all implementation progress and ensure timely deliverables and on time project completion. The financial costs for establishment of PMU are included in PC-I approved by the government. At BCP level, Construction Supervision Consultant (CSC) will act as Project Implementation Unit (PIU) to supervise day to day project implementation activities and assist PMU at FBR for timely delivery of the project. The PMU at FBR will be headed by a Project Director having full financial and administrative powers with technical, financial and safeguards management staff hired from the market on compatible salary package and the sub PMU will be headed by a Project coordination Officer at BCP level to carryout functions at site on behalf of PMU and coordinate with the PIU in smooth implementation of the project. At sub PMU and the PIU level technical expertise will be augmented through hiring project management consultants who will be recruited outside and attached to PIU. 276. The overall responsibility for delivery on safeguards management is the CSC. The existing capacity of PMU and PIU is reviewed and the institutional arrangement available and to be put in place for delivery on safeguards management and preparation, implementation and monitoring of Land Acquisition and Resettlement Plans are discussed as under: 10.4.1 Safeguards Management Cell at PMU 277. As the CSC will be over all responsible for the delivery on safeguards management, CSC will monitor and supervise the contractor activities and develop report to submit the PMC. PMC review the data and if require made necessary changes for implementation. After final review report will submit to PMU for onward submission to ADB. PMC Environmental and Social Safeguards Specialist will notified to oversee and monitor Land acquisition and Resettlement Progress and coordinate ADB safeguards management team throughout project implementation period. However, keeping in view the distinctive legal and administrative frame work in tribal area, the coordinative role of FATA administration i.e Political Agent Khyber Agency and his subordinate’s office is essential to plan and implement the LARP provisions as per policy. Hence, it is suggested that the Political Agent Khyber Agency will be coordinated by the ESC for extending his support during implementation of safeguards initiative as and when required. The Safeguards Management Unit at PMU will include:

Page | 101 . Project Director PMU Chairman . Director Coordination PMU Member . Project Coordinator Torkham sub PMU Member . Social Safeguards Specialist PMC Member . Environmental Management Specialist PMC Member 278. On behalf of EA, the unit shall oversee planning and implementation of the safeguards management and ensure the LAR deliverables are submitted to ADB in a timely manner. It shall perform following functions. i) The unit shall act as a steering body for the LAR activities at the project and shall formally assemble once a month for routine LAR matters to review LAR planning and implementation issues. Special meeting/routine discussions can take place, as and when required. ii) It shall coordinate with ADB and share LAR planning, implementation and monitoring progress reports as and when required and discuss the LAR issues to seek guidance on ADB’s policy requirements and ensure the LAR planning and implementation is consistent with ADB’s safeguards requirements. iii) It shall ensure timely implementation of LAR activities and monitor the progress thereon during execution of the civil works and shall share LAR implementation progress and monitoring reports with ADB. iv) It will act as a support mechanism for the PA, Khyber Agency who in his role at the 2nd level of GRM discussed in Chapter 5, is the final decision-maker on unresolved grievances at the Jirga and GRC levels. v) The unit shall coordinate on regular basis with the Land Acquisition and Resettlement Units, Grievance Redress Committee and local Jirga established / notified at PIU level to provide guidance and support in LAR implementation and grievances redress in a manner consistent with ADB’s safeguards requirements.

10.4.2 Land Acquisition and Resettlement Unit (LARU) at PIU 279. At Torkham border crossing point site, the PMU will exercise its safeguards management related functions through its sub-PMU and PPIU that will be led by the National Logistic Cell (NLC) already operating at Torkham. At sub PMU/PIU level a Land Acquisition and Resettlement Unit/committee will be notified to process acquisition of land and other assets under LAA provisions, prepare and update land acquisition and resettlement plans as per SPS 2009 requirements, carry-out day to day LAR implementation and monitoring activities and deliver compensation to the affected households for acquired assets and lost livelihood and income sources. The project management and implementation units will be facilitated by LARU, to ensure timely establishment of GRC and Jirga at the local level. The LARU will also ensure effective coordination between line government departments, concerned stakeholders and displaced population during updating, implementation and monitoring of this LARP. 280. LARU shall comprise the following members with their respective functions: i. Regional Project Coordinator sub PMU Torkham Unit Leader. ii. Director Land NLC (PIU) Member

Page | 102 iii. Senior Manager NLC (PIU) /Deputy Collector Custom, Torkham BCP Members iv. Social Safeguard Expert (PMC) Member/Coordinator v. Social Safeguard Expert (CSC) Community Liaison 281. The Social Safeguard Expert CSC as LARU member will facilitate and support other LARU team members as focal person in resettlement planning, updating and implementation of resettlement plans to ensure compliance with SPS requirements. Moreover, the Social Safeguard Expert CSC will provide guidance to team members during consultations and information dissemination of resettlement activities. He will be a focal person to monitor the day to day implementation progress and compile periodic internal monitoring reports to be shared with the PMC social safeguard expert and PMC expert after review and verification shared with the ADB through management unit at PMU. The LARU will have one social safeguarded expert from the CSC to assist PMC social safeguard expert and the LARU team in consultation meetings, disclosure of project information, information sharing with APs related to disbursement of compensation and related tasks as well as to retain a close liaison with the local Jirga to facilitate them during periodic meetings and resolution of their issues at local level or elevate AP’s complaints/grievances at 1st level of GRM. The scope of work of LAR Unit includes: i) The unit shall exercise its functions as LAR planning and implementation unit at site and with its routine functions shall formally assemble once in a month to discuss progress on land acquisition matters, and preparation, updating implementation and monitoring of LARPs implementation in field. However, for routine LAR matters, special meeting/routine discussions can take place, as and when required. ii) It shall implement LAR activities and monitor the progress thereon during execution of the civil works. iii) In order to efficiently deal with APs grievances, the unit shall coordinate on regular basis with the grievance redress committee and local Jirga. iv) Coordinate with Office of APA, Landi Kotal to follow-up progress on land acquisition and delivery of compensation to affected land owners. v) LARU will hold meaningful consultations with the APs and other stakeholders including government and non-government organizations to, discuss the LAR issues of the project and remedial measures to offset the adverse impacts; maintain the record of consultative meetings; ensure disclosure of the draft and approved RP; disseminate project related information to relevant stakeholders including eligibility criteria, entitlement provisions, asset valuation, compensation delivery and grievance redress mechanisms etc. vi) Facilitate the Safeguards Management Unit in PMU during their visits to the land acquisition and resettlement sites; prepare and submit updated LAR implementation progress reports to PIU and PMU on regular basis and; assist PMU and PIU in review of LAR issues and prepare and implement corrective actions to ensure LAR activities during execution of civil works are consistent with SPS requirements. vii) LARU shall track day to day LAR implementation progress and make adjustments in implementation schedule to achieve the targeted timelines as well as preparing quality internal monitoring reports and consolidating quarterly monitoring reports for sharing with PMU and ADB and uploading on FBR website for disclosure.

Page | 103 10.4.3 Grievance Redress Committee 282. A three-tiered GRM is proposed for handling and resolution of land and non-land based grievances arising due to acquisition of land and other assets as well as during execution of the project civil works under ADB policy principals outlined in SPS 2009. The first level of grievance redress mechanism at PIU level will be achieved by the Jirga comprising of members from both local community and the project implementing authorities. However, keeping in view the legal and administrative framework of the project area, a Grievance Redress Committee is being constituted as under to handle all safeguards related grievances including land acquisition matters: i. Assistant Political Agent (Landi Kotal) Convener ii. Project Coordinatorsub PMU Torkham BCP DeputyConvener/Member iii. Manger NLC (PIU) /Deputy Collector (Custom) Torkham BCP Member iv. Social Safeguard Expert (PMC) Co-opted Member v. Environment Specialist (PMC) Co-opted Member vi. One representative from each clan of Khuga Khel Tribe Member 283. The scope of work of Grievance Redress Committee for social safeguards is discussed as below. a) The GRC shall prepare a register for the purposes of entering each and every complaint either received directly from the AP or through, PMU, FBR or other outside agencies i.e. Contractor or Supervision Consultants or ADB. b) These complaints shall be carefully categorized in separate heads as against price fixation of Land (if any), crop, trees, structures etc. Or problems in relocation and seeking assistance for rehabilitation etc. Such complaints shall be disposed of within 30 days. c) The GRC shall acknowledge the complainant about his complaint and initiate the field investigation of issues raised by the complainant through land/technical staff assisted with resettlement specialist and junior sociologist for fact finding to determine eligibility and entitlement of the complainant. d) GRC after review of record including fact finding report on complaint and visiting the site (if deem necessary) shall summon the complainant for hearing and produce evidence of his claim (if required), shall recommend the remedial measures consistent with RP provisions to resolve the issue and communicate its recommendations/report to the LARU/Project Directorate for implementation and resolution of the problem accordingly. e) The Resettlement Specialist will be the focal person of GRC who shall maintain all record of complaints and coordinate the meetings of the GRC and will minute the proceedings of all such meetings. f) The Resettlement Specialist shall assist the GRC convener to prepare a monthly progress report regarding complaints received and disposed off in each monitoring month and such reports shall be submitted as part of internal monitoring reports (IMR) to heads of project LARU and PMU on monthly basis. g) The GRC shall ensure that all field visits and consultations with the APs are properly documented, snapped, and recorded on the video; such record shall be placed in the Project Office (PO) at site in original and copies of the record will be sent to PMU at FBR.

Page | 104 h) In case of disagreement by AP with GRC’s recommendations/decision the GRC shall send the complaint with its record to 2nd level of GRM (Office of PA, Khyber Agency) for its review and decision if AP opts so. i) GRC shall communicate its decision / recommendations to the complainant and project directorate for execution and shall close the complaint file with prior approval from the PMU head.

10.4.4 Jirga (Council of Local Leaders) 284. A traditional council of village elders (Jirga) has already been constituted with the direct guidance of the APA, Landi Kotal. The Jirga will act as coordination node between the project executing authorities and the affected persons for coordination and information dissemination to keep them informed about day to day development on the project, particularly about the LARP implementation and grievance resolution progress. The Jirga will act as first level for redress of grievances and will provide a platform for APs to raise and discuss their concerns, resolve petty issues at local level with assistance from sub PMU, and coordinate with project executors to implement the LARP provisions, recommendations of the Jirga and GRC to address community concerns regarding social issues.

10.4.5 Project Management Consultants (PMC) 285. In coordination with the sub PMU at Torkham BCP, the overall responsibility for day to day implementation is with NLC (Contractor), so to augment that capacity of the sub PMU and PIUin technical, financial, procurement and contract administration, and safeguards management, project management consultants will be recruited. Under PMC following experts with proven track record will be recruited and placed in sub PMU/PIU Torkham to facilitate LAR Team to handle and manage safeguards fully consistent with ADB’s requirements: (i) Resettlement Specialist (RS): to facilitate in planning, updating implementing and day to day monitoring of the LARP (ii) Junior Sociologist/Social Mobilizers: under supervisions of Resettlement Specialist will facilitate in community coordination, consultation and to and forth dissemination of information on safeguard issues. 286. The RS will be responsible for a diverse number of inter-related activities and output for implementation of LARP. The Resettlement Specialist will be responsible for all LARP updating work including: (i) Detailed measurement of affected assets, updating of the list of affected persons as per final impacts (land and other assets) and updating of the LARP budget based on compensation entitlements for lost assets and resettlement and rehabilitation and livelihood restoration measures. (ii) Updating of draft LARP as final implementation ready LARP and disclosure of LARP provisions to the affected communities and other stakeholders; (iii) Sharing draft LARP with sub PMU and PIU at site and ESCin PMU for EA’s endorsement before submitting to ADB for review and clearance. (iv) Coordination with the affected communities for submission of compensation claims and collection of their compensation (v) Preparation and processing of compensation claims as per LARP provisions

Page | 105 (vi) Stakeholders consultations and information dissemination on project implementation and compensation delivery (vii) Monitoring of day to day LARP implementation, identifications of implementation lags and issues, suggests corrective measure to update implementation plan for overcoming the lagging components in LARP implementation (viii) Preparation of LARP implementation progress (monthly) reports for review of PIU and PMU as well as periodic internal monitoring reports to be shared with ADB for review, concurrence and uploading on ADB and FBR websites. 10.4.6 Construction Supervision Consultants (CSC) (i) The project Supervision Consultant under the engineering -Procurement –construction (EPC) contract will supervise project implementation including; (ii) a) Review and certify that the implementation agency executing the Land Acquisition and Resettlement components as approved by ADB and with the entire satisfaction of the affected persons. (iii) b) Supervise LARP implementation process for the effective operation and ensure that it confirms the implementation program is consistent with client’s requirements.

(iv) Conduct regular visits to the affected communities and GRCs, assess whether any grievances developed during implementation and help resolve grievances. (v) Review and certify work program of the implementation agency related to resettlement issues. (vi) Review and endorse interim payment certificates for Implementing Agency’s approval. 10.5 COORDINATION INITIATIVES 10.5.1 Steering Committee for Integrated Trade and Transit Management System 287. A high-level committee chaired by Minister Finance with Secretary Finance and Ministers as well as administrative Secretaries of Foreign affairs, Defense, Commerce, Communication, Railways departments as members has been constituted for inter departmental coordination and implementation of the project. ITTMS steering committee is the highest decision-making authority for project implementation issues and provide over all guidance for all agencies involved in project implementation. 10.5.2 Project Implementation Committee (PIC) 288. AtPMU level, a PIC consisting of senior officers (not below the rank of Additional Secretary) from Ministry of Commerce, Ministry of Defence, Revenue Division FBR, Political Agent, Khyber Agency, Director General (NLC), and Project Director PMU is proposed to be established that will guide PMU and PIU, review the progress of implementation and shall coordinate with relevant Ministries/Departments to sort out any project implementation problems.

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SECTION 11 IMPLEMENTATION SCHEDULE

11.1 INTRODUCTION 289. Implementation of LARP consists of compensation to be paid to the APs for affected land, structures and rehabilitation and resettlement activities. The time for implementation of the LARP will be scheduled as per the overall project implementation. All activities related to the land acquisition and resettlement are planned to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. However, the schedule is subject to modification depending on the progress of the project activities. The civil works contract for the project will only be awarded for construction work, after all compensation and relocation has been completed for project and rehabilitation measures are in place, as confirmed by independent Monitor.

11.2 SCHEDULE FOR LARP IMPLEMENTATION 290. The LARP is prepared based on the project design and efforts were made to identify and assess all impacted assets including land, structures, trees and crops. In line with the tribal nature of the project area, impacted assets were linked with the local Jirga representing the three sub-tribes (Ashraf Khel, Bassi Khel, and Fatimi Khel for communal land. For identification of impacted land and other assets linked to communal land, the Office of the APA, Landi Kotal and the local Jirga were consulted. Through community consultation and field survey work, efforts were made to verify the information gathered from the Local Administration and Patwari’s offices to ensure that all impacts are linked to the affected persons to a certain degree of precision. 291. The proposed project’s resettlement activities are divided into three broad categories based on the stages of work and process of implementation. The details of activities involved in these three phases-project i.e., i) Updating/finalization of draft LARP as final implementation ready LARP with final census linked impacts and compensation budget, ii) LARP Implementation phase includes payment of all entitled compensations to respective APs and rehabilitation measures put in place, iii) Monitoring and Reporting phase. Accordingly, the implementation schedule is prepared and discussed below 11.2.1 LARP Preparation/Updating Phase 292. The LARP is prepared based on detail design. As per the laws of FATA and local customs, the compensation for acquired assets (land and structures) will be based on consensus rates between government and local community. Assisted by the Office of the PA, Khyber Agency and Assistant Political Agent, Landi Kotal the consultation process for LAR with the APs and their representatives is in progress and land has been acquired on lease for trade terminal. In this regard, the representatives of FBR and NLC and Political Administration have held several meetings with the local Jirga and family elders of affected structure for a consensus on land acquisition process and the compensation rates and mechanism for communal lands. Currently, negotiations for the passenger terminal land is currently underway to finalize the compensation unit rates and agreement details. Hopefully, this land also finalized based on the previous trade terminal land lease agreement. It could take a minimum of 1 month to complete all the tasks for land acquisition at Torkham. Hence, the final LARP budget and list of compensation for entitled persons under law could be

Page | 107 finalized when the negotiations are concluded and terms and conditions with compensation entitlement for land acquisition are agreed. LARP has been updated based on the available details. 293. Requisite institutional arrangement that will be put in place include establishing PMU in FBR and sub PMU &PIU at Torkham with safeguards management staff and units/committees responsible for land acquisition and resettlement and notification and operationalization of the GRC and hiring of an independent monitor for monitoring and evaluation of LARPs implementation. Information campaign & community consultation process about affected assets, compensation delivery and grievance redress have also been initiated from this stage and will continue until project completion.

11.2.2 LARP Implementation and Monitoring Phase 294. LARP implementation includes disclosure of approved LARP, compensation of award by EA, payment of all eligible assistance, relocation of APs, initiation of economic rehabilitation measures; redress of grievances and complaints if any, removal of structures/assets and taking over possession of acquired land, site preparation for delivering the site to contractors for construction and finally starting civil work. Internal monitoring and reporting requirement starts immediately with LARP implementation process and continues until LARP implementation is completed in all respects. The monitoring consultant will monitor the LARP implementation progress on daily basis and compile and share monthly internal monitoring reports with PMU in FBR and ADB. 295. The independent monitoring of the LARP implementation will be the responsibility of independent monitor procured as such for the project. EMA will start his monitoring from start of implementation and submit periodic reports monthly till complete implementation of LARP. 11.3 LARP IMPLEMENTATION SCHEDULE 296. A composite implementation schedule for LARP activities in the subproject including various sub tasks and time line matching with civil work schedule is prepared and presented in the form of Table: 11.1. However, the sequence may change or delays may occur due to circumstances beyond the control of the Project and accordingly the time can be adjusted for the implementation of the plan. As per Table 11.1 phase 2 LARP report has been updated and going to submit ADB for approval.

Page | 108 Figure 11.1: Implementation Schedule

Page | 109 SECTION 12 MONITORING AND REPORTING

12.1 NEED FOR MONITORING AND REPORTING 297. Periodic monitoring provides a regular assessment of planned activities providing an update of achievements against targets. Within the scope of involuntary resettlement, monitoring and reporting are critical activities that help in assessment of implementation progress, rescheduling of key activities, and early identification of hurdles to targeted delivery and, most importantly timely resolution of problems faced by the APs. The monitoring mechanism LARP of Torkham BCP will have both internal monitoring (IM) and external monitoring (EM) components. Internally, the LARP implementation for the subproject will be closely monitored (internal monitoring) by the EA through the PIU and the Resettlement Specialist mobilized through the PMC. An independent external monitoring agency will be hired as an external monitor. The IM and EM are required to. . Establish and maintain procedures to monitor the progress of the implementation of safeguard plans; . Verify their compliance with safeguard measures and their progress toward intended outcomes; . Document and disclose monitoring results and identify necessary corrective and preventive actions in the periodic monitoring reports; . Follow-up on these actions to ensure progress toward the desired outcomes; . Retain qualified and experienced external experts to verify monitoring information for projects with significant impacts and risks; and . Submit periodic monitoring reports (monthly, quarterly and annually) on safeguard measures as agreed with the ADB. 298. A timetable for submission of reports has been provided in figure 11.1 with reporting frequency/timing for internal and external monitoring report specified. Both internal and external monitoring will take place on a monthly basis with a reporting gap of 15 days to allow for incorporation of feedback from internal reporting before initiation of external monitoring activities. 12.2 INTERNAL MONITORING 299. One of the main roles of sub PMU at site and PIU will be to oversee the proper and timely implementation of all activities in LARP with periodic monitoring of implementation progress. The Resettlement Specialist for Torkham BCP will play a critical role in the IM process and will support the sub PMU and PIU monitoring unit during LARP implementation monitoring process and ensure required technical guidance and timely coordination of IM activities. Monthly reports will be the first reporting tool that will be based on progress data collected from the PIU at the site level and provide an overview of the implementation status of key activities. The monthly reports will also provide alternative actions/activities for delays or any other hurdles to targeted implementation. Therefore, the entire process of IM will help to realign the project activities to ensure timely and efficient delivery of planned outcomes.

Page | 110 300. Internal Monitoring (IM) indicators will relate to process outputs and results. The monthly IM reports will be consolidated into quarterly internal monitoring reports by the Resettlement Specialist. These Quarterly IM reports will be shared by the ADB. Specific IM benchmarks will be based on the approved LARP and cover the following: a. Information campaign and consultation with APs; b. Status of land acquisition and payments on land compensation; c. Compensation for affected structures and other assets; d. Payments for loss of income and income restoration activities implementation; and e. Ensure the gender mitigation measures are adhered to during the internal monitoring and reporting process. 301. Gender-disaggregated information will be collected by the internal Monitoring Consultant at PIU, which will monitor the day-to-day resettlement activities of the project through the following instruments: a. Review of census information for all APs. b. Consultation and informal interviews with APs. c. Key informant interviews; and d. Community public meetings. 12.3 MONITORING BY EXTERNAL EXPERT 302. The EA is required to engage a qualified and experienced External Monitoring Expert to verify the EA's monitoring information. The EMA will be hired at the start of the LARP implementation and will be engaged throughout the project execution period. The main objective of the EM process is to provide a third-party independent review of LARP implementation and provide necessary recommendations. The external monitor will review the IM reports, collect/validate information in the field and determine whether resettlement objectives and goals have been achieved. The EMA will also monitor the restoration of livelihoods and living standards of APs. The external monitor will identify the gaps in LARP implementation and advise the EA on safeguard compliance issues. The key tasks during external monitoring will include: a. Review and verify internal monitoring reports prepared by sub PMU/PIU; b. Review of the socio-economic baseline, census and inventory of losses of pre-affected persons; c. Identification and selection of impact indicators; d. Impact assessment through formal and informal surveys with the affected persons; e. Consultations with APs, officials, community leaders for preparing review report; f. Assessment of resettlement implementation progress, efficiency, effectiveness and sustainability; and g. Review of adherence to the gender mitigation measures during monitoring period. 303. The following will be considered as the basis for indicators in external monitoring and evaluation of the project:

Page | 111 a. Socio-economic conditions of the APs in the post-resettlement period; b. Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables, etc.; c. Quality and frequency of consultation and disclosure; d. Changes in housing and income levels; e. Rehabilitation severely affected people, and different vulnerable groups; f. Valuation of property and ability to replace lost assets; g. Disbursement of compensation and other entitlements; h. Level of satisfaction of APs in the post resettlement period; i. Grievance procedures, including recording, reporting, processing and redress of grievances. 304. Based on the external monitor’s report, if significant issues are identified, a corrective action plan (CAP) for remedial actions will be prepared. The CAP will be shared with ADB for review and approval and consequently, disclosed to the APs. However, Internal and external monitoring and reporting will continue until all LAR activities have been completed.

12.4 DATABASE MANAGEMENT AND STORAGE 305. A computerized user-friendly resettlement database is part of the LARP for Torkham BCP and will be accessible to implementing agencies and ADB. This database not only records socio-economic profiles, economic impacts and affected assets information for all APs, but it will also serve as a monitoring tool for the EMA to gauge the achievement of LAR objectives. 12.5 REPORTING REQUIREMENTS 306. The external expert will be responsible for submission of an external monitoring report to the EA and the ADB SPS (2009) on a bi-annual basis. Findings of the EMA should be summarized in the reports, including the following: (i) progress on LARP implementation vis- à-vis defined objectives and targets (ii) identification of problems/concerns and recommendations for mitigation measures including roles and responsibilities matrix (iii) progress on mitigation measures identified in the previous report. 307. The monitoring reports will confirm whether resettlement goals have been achieved, more importantly whether livelihoods and living standards have been restored/ enhanced and suggest suitable recommendations for improvement. Additionally, ADB will monitor projects on an ongoing basis until a project completion report is issued. 12.6 DISCLOSURE 308. All monitoring reports will be translated and disclosed as per ADB’s SPS and public communications policy requirements, i.e. by posting at ADB website as well as to affected persons by placing its copies at an accessible place in a manner and language understandable to affected persons.

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