SMR: Papua New Guinea: Lae Port Development Project

Social Monitoring Report

Project Number: 40037-01 November 2010

PNG: Lae Port Development Project

Prepared by Ila Mari

Project Director, IPBC PMU Lae, Papua New Guinea

For Independent Public Business Corporation

This report has been submitted to ADB by the Independent Public Business Corporation and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Lae Port Development Project.

Loan 2398/99 – PNG: Lae Port Development Project. Grant 9113 - PNG: Livelihood and Social Improvement

Prepared by: Independent Public Business Corporation.

Portion 508: The affected communities at Lae Tidal basin.

NNE (SODAS)

SODAS

PORTION 508 WARA TAIS

MAUS MARKHAM

PNG MAP: Movement Routes of the Affected People.

Table of Contents.

Table of Contents...... 1 Acknowledgement...... 2 Abbreviations and Acronyms...... 3 Glossary of Terms...... 4 Executive Summary...... 6 1.0 Background...... 9 2.0 SRP Recognised Committees...... 10 2.1 SRP Implementation Committees Meetings...... 12 3.0 Deed of Release and Indemnity...... 13 3.1 State Solicitor Approval of DRI...... 13 3.2 DRI Awareness by IPBC Legal Officer...... 13 3.3 DRI Legal Interpretation and Execution...... 13 3.4 DRI Execution Footage...... 14 4.0 Livelihood and Social Improvement Programs...... 15 4.1 Personal Viability Training (Refer to PV Training Report)...... 15 4.1.1 Testimonies from PV Participant...... 16 4.1.2 PV Execution...... 17 4.2 Start Your Own Business Course...... 18 4.2.1 SYOB Participants...... 19 4.3 NGO – Community Awareness Program...... 19 4.3.1 NGO Community Awareness Footage...... 20 5.0 SRP CAP Payments...... 21 5.1 BSP Bank Transaction to AP Account...... 21 6.0 Repatriation...... 21 6.1 Repatriation to the Highlands Region...... 22 6.2. Repatriation to Madang and Bogia...... 23 6.3 Repatriation to Wewak in East Sepik Province...... 23 6.4 Resettled within Lae City...... 24 6.5 Resettled within Morobe Province...... 25 6.6 Repatriation to Oro and Milne Bay Province...... 25 6.7 Repatriation to Rabaul and Bougainville...... 25 6.8 Repatriation to Port Moresby and Gulf...... 25 7.0 Grievance Redress...... 25 8.0 Conclusion ...... 26 Appendix A: Affected People’s Resolution for CAP...... 28

Acknowledgement.

The Executing Agency and its stakeholders would like to sincerely thank the following public and private institutions, Non Government Organizations and Individuals that committed their time, effort and resources in assisting IPBC to successfully implementing the Supplementary Resettlement Implementation Plan between 2009 and 2010. The institutions and individuals were as follows;

1. Asian Development Bank. 2. Japanese Government (JFPR). 3. Government of Papua New Guinea. 4. PNG Ports Corporation. 5. Morobe Provincial Government. 6. Morobe Provincial Administration. 7. Morobe Provincial Administrator. 8. Deputy Provincial Administrator. 9. PNG State Solicitor’s. 10. Chairman of Lae Chamber of Commerce & Industry. 11. Morobe Provincial Police Commander (PPC). 12. Lae Metropolitan Police Commander. 13. Lae Police Inspector. 14. Lae Urban Local Level Government Ward 3- Councilor. 15. Ward 3 Community Development Officer. 16. Lae Community Policing. 17. Guard Dog Security Service. 18. Kuima Security Service. 19. G4S Security Service. 20. BAHA International (NGO). 21. Evangelical Lutheran Church PNG -Lutheran Life Care (NGO). 22. Soroptimist (NGO). 23. PNG Family Health (NGO). 24. Save the Children Poro Support (NGO). 25. Bank of South Pacific Ltd. 26. Bris Kanda Inc. (NGO). 27. Rabaul Shipping Service. 28. Lae Bus Service. 29. PNG University of Technology. 30. PNG Unitech Management Development Centre. 31. Entrepreneurial Development Training Centre (NGO). 32. Rageau Manua & Kikira Lawyers. 33. EM Media Tech Service Provider. 34. Local AP leaders. 35. IPBC Project Management Unit. 36. Receiving Provincial Administrations.

Abbreviations and Acronyms.

ADB - Asian Development Bank AP - Affected People BAHA - Business Coalition Against HIV and AIDs. BSP - Bank of South Pacific BUP - Busolum, Uawap and Pualu clans CAP - Cash Assistance Package CD - Community Development CDM - Community Development Manager CDP - Community Development Program DRI - Deed of Release and Indemnity EA - Executing Agency EDTC - Entrepreneur Development Training Centre ELCPNG - Evangelical Lutheran Church Papua New Guinea ESP - East Sepik Province GoPNG - Government of Papua New Guinea HH - House Hold(s) IPBC - Independent Public Business Corporation JFPR - Japanese Funds for Poverty Reduction LBS - Lae Bus Service. LCCI - Lae Chamber of Commerce and Industry LDA - Lae District Administration LPDP - Lae Port Development Project LSIP - Livelihood and Social Improvement Program. LTB - Lae Tidal Basin LULLG - Lae Urban Local Level Government. MPA - Morobe Provincial Administration MPG - Morobe Provincial Government MVSQ - Marine Vessel Solomon Queen NB - Non-Beneficiaries NGO - Non Government Organization NNE - North-North East NWMB - Nation Wide Micro Bank PD - Project Director PMU - Project Management Unit PSC - Project Steering Committee PTT - Provincial Technical Team PV - Personal Viability RC - Resettlement Committee RIC - Resettlement Implementation Committee RP - Resettlement Plan SID - Settlers Identification Card SRP - Supplementary Resettlement Plan SYOB - Start Your Own Business UMDC - Unitech Management Development Centre.

Glossary of Terms.

Affected People affected people means all the households and their dependents, whose assets, access to food source and incomes and education are affected because of project development.

Beneficiaries the term refers to all those who were listed on the DRI and received the CAP payment one-way or the other.

Cash Assistance The cash assistance package based on the Entitlement Matrix Package that signified certain categories of household possessions that were converted to cash and paid to AP as compensation for the loss of items and loss of job encountered when project begins.

Cut-off-date means the date after which additional households will NOT be considered eligible for compensation. They were not resided in the affected area (Lae Tidal Basin) before the census cut of date. For this project the cut-off-date is the date on which the census was carried out; i.e. February 8th 2007.

Deed of Release means the deeds underline in the agreement between the and Indemnity individual HH head and IPBC whereby IPBC will provide cash assistance to the HH on 30%:70% installment payment provided the HH moved out of the project site after first payment.

Executing Agency The Agency that was tasked to implement the Supplementary Resettlement Plan and the Lae Port Development Project. IPBC was the lead executing agency to coordinate and mange the implementation of SRP.

Households means the husband, spouse and their children and relatives dwelling under one roof that cook and share food together in the same house and live together as one family. HH can also mean a single parent or house owner with children and or relatives living together sharing the same living space and eat together in same dwellings.

Household head means the head of the households either father, mother or eldest son/daughter or an individual who are the heir to the house or dwellings and accommodating people under the roof, providing food and other necessary means of survival.

Non-Beneficiaries refer to people who reside on project site after the cut of date and are not liable for cash assistance. These do not include families, relatives or members of households already listed on the DRI.

NNE Sodas means the Sodas settlement located at the Northern end of the Lae Port project boundary at the far North-eastern end just above Sodas village. This settlement comprised of 69 HH was recently included to the SRP CAP list as per ADB Mission recommendation.

Opportunists means people who are not affected or are non beneficiaries to SRP CAP. These are people who are looking for opportunity to reap the benefit from authorities by claiming to be genuine affected people. Most moved into the project area after learning of the CAP payout in 2009 and hoping to find luck by illegally settled on state land and putting up their claims for payment to the EA.

Project Steering The committee set up by EA that included Morobe Provincial Committee Administrator, IPBC Managing Director, Secretary for Department of Public Enterprise, and Minister for Public Enterprise and the CDP Adviser.

Provincial Technical Consists of PMU CD Manager, CD Coordinator, Deputy MPA, AP Team elected Leaders and LULLG ward 3 councilor. The PTT also acted as the grievance redress committee.

Resettlement means all social and economic impacts that are permanent or temporary and are (i) caused by acquisition of land and other fixed assets, (ii) by change in the use of land, or (iii) restrictions imposed on land/resources as a result of an ADB operation.

Repatriation Means the process of returning people to their home land. The SRP indicated that most settlers (affected HHs) were from other provinces who resided in Lae and they will return back to their province of birth.

Supplementary means the supplement of the original Resettlement Plan drafted Resettlement Plan by IPBC and approved by MPG, IPBC, GoPNG and ADB in 2007.

Resettlement The committee set up by EA that included Morobe Provincial Committee Administrator, IPBC Managing Director, Secretary for Department of Public Enterprise, and Minister for Public Enterprise and the CDP Manager.

Resettlement The committee made up of MPA, Lae Chamber of Commerce, Implementation Provincial Police Commander, Project Director and Community Committee Development Manager and IPBC Legal Officer.

Executive Summary.

1. The revised Resettlement Plan (hereafter RP) included Cash Assistance Payment (hereafter CAP) and in-kind assistance provided to the Affected People (hereafter AP) before vacating the Lae port project premises. The final approval was given by Government of Papua New Guinea (hereafter GoPNG) with Asian Development Bank (hereafter ADB) approval of no objection in April 2009. This established a way forward for the implementation of the revised Resettlement Plan which was renamed as the Supplementary Resettlement Plan (hereafter SRP) between September 2009 and March 2010.

2. The Executing Agency (hereafter EA), the Independent Public Business Corporation (hereafter IPBC) with the approval of the GoPNG and the concurrence from ADB, established five SRP functional resettlement committees in 2009. The purposes of the committees were to oversee the developments taking place during the implementation of SRP and directions were necessary to enhance the progress. The committees established were as follows;

A. Project Steering Committee (PSC). B. Resettlement Committee (RC). C. Resettlement Implementation Committee (RIC). D. Provincial Technical Team (PTT). E. Grievance Redress Committee (GRC).

3. The implementation of SRP had achieved the desired outcome as expected though there were hiccups and delays experienced. The Livelihood enhancement program included Personal Viability (hereafter PV) and Start Your Own Business (hereafter SYOB) courses, HIV/AIDS and Health awareness were implemented prior to signing of Deed of Release and Indemnity (hereafter DRI). The Completion of the signing of DRI immediately led to CAP payment to household heads (hereafter HH) and coordination instruction given to repatriate AP by coastal passenger shipping and by trucks and buses.

4. IPBC established a Project Trust account with BSP bank that received funds transferred from GoPNG Infrastructure Trust Account held by Department of National Treasury. After the HH head had signed the bank forms and DRI document each individual accounts were opened. IPBC issued identification cards (hereafter ID cards) to all 543 HH heads and their spouses and they were given their account details.

5. The issuance of ID cards, execution of DRI and account opening activities were accomplished within a month. The AP were thoroughly informed regarding the payment timeline, progress of livelihood improvement program funded by Japanese Funds for Poverty Reduction (hereafter JFPR), progress of shipping and land transport arrangements.

6. The JFPR grant 9113-PNG: Livelihood and Social Improvement Program provided PV training to 300 interested HH heads, which included 36% women. Furthermore, the SYOB Course attracted further 65 HH heads and viable family members who are interested in business, of which 29% were women. All trainees received their certificates at the University of Technology (hereafter UNITECH) lecture theatre.

7. More than 1000 people included women and children attended a week long Community Awareness Program conducted by recognised Non Government Organisations (NGOs) based in Lae. The awareness campaign by NGO groups were focussed on critical life style issues, mainly HIV/AIDS, health and sustainable

issues as well as law and order to prepare the AP to make correct and wise decisions to enhance their future way of life.

8. IPBC coordinated the logistical, administration support and security assistance for the AP during the relocations of their cargos, luggage and personal from the project area to their point of destinations within and outside of Lae. More than 4000 AP have been relocated from the project site in January 2010, which included the beneficiaries and non beneficiaries (the people who have recently moved into the project area after 2007 cut off date) and the opportunists1.

9. Approximately 50 to 60% AP have resettled within Lae for employment purposes and some secured vacant land within Lae to settle their families and for them to seek employment or be self employed in small scale businesses.

10. The CAP payment of 30% first instalment was paid out on 18th December 2009. The final payment of 70% CAP was paid to the AP on 18th March 2010 after EA confirmed that AP have completely moved out of the project area and have resettled elsewhere in accordance with the DRI agreement.

11. The total of 543 HH received CAP totalled PGK 16.9 million with additional logistics and transport assistance cost of PGK 0.78 million and additional grants from JFPR assistance of PGK 0.165 million for livelihood improvement programs. PMU Project Accounts managed and acquitted the SRP and JFPR funds throughout the entire operations.

12. The grievances encountered from the CAP payment and repatriation exercise were handled by community development team supported by the local elected leaders and LULLG ward councillor. Majority of the grievances received by IPBC/PMU were common disputes from defector relationship (between husband and wife) and family members over the CAP payment and house ownership issues (owners returning back to claim payment from EA after learning of CAP).

13. In the absences of Grievance Redress Committee any issues not resolved at the PTT committee level was directed to RIC level for resolution. However, when the CAP payment commenced the house ownership issue emerged resulting in approximately eight (8) court cases, which were resolve by PNG court of law. The ownership of houses was related to persons who had lived their previously and left the place before the 2007/2009 census and have gone which left the AP to dwell on the property. The aggrieved house owners were not included in the DRI or the CAP payment list (according to ADB Resettlement Policy concerning AP). The court of law in their deliberations did not consult the DRI binding agreements between AP and IPBC, thus the decisions were in contrary to the DRI.

14. All outstanding grievances were successfully resolved and all disputing parties were settled by July 2010. However, opportunist (non beneficiaries who recently moved into the project area after February 2007) had gone ahead to form an illegal youth group to pursue legal court battle against IPBC and GoPNG for negligence for their claim to be included in CAP. That included false representation of claims that every youth (young men and women) who were listed as non beneficiaries were supposed to have benefited from CAP but was denied. IPBC in their own investigations confirmed that the issue was perpetrated by criminals and opportunists therefore, engaged Manua & Kikira Lawyers to take legal proceedings to court for the case to

1 Opportunists - Are people who are not affected, not genuine settlers and are also non beneficiaries to SRP CAP. Unlike the non beneficiaries these were people who look for opportunity to get something for themselves and in that case moved into the project area after every effort put in place by IPBC, hence claiming for payment.

be heard. There have been no further activity regarding the same and PMU have now commenced the SRP monitoring.

15. The SRP exercise of repatriation and relocation was coordinated well by IPBC through it was PMU who were the lead implementers of the Lae Port Development Project. The repatriation and relocation exercises involving more than 4,000 people were considered successful due to the fact that it was incident/accident free and all affected people reached their destinations safely. The success could also be measured by less than 13 numbers CAP issues that ended up in court and resolved with not impact.

16. The SRP has now been successfully completed and the IPBC have now embarked on the monitoring aspects of the project, assisting Morobe Provincial Administration on JFPR Grant 9113-PNG: Livelihood & Social Improvement components; community infrastructure improvement, agriculture extension and community based Floating Fish Caging of directly affected people who have resettled and indirectly affected people (Labu people). These activities will continue for the next two years.

17. In summary, although, Repatriation and Resettlement exercise was the first of its kind in PNG; all GoPNG stakeholders, ADB and NGOs and individuals who have participated in the exercise have done very well, resulting in successful completion of the SRP.

1.0 Background.

18. The GoPNG had embarked on constructing a new port at Lae tidal basin on portion 508 Milinch of Markham. After series of fact find missions and visits done by ADB and stakeholders to PNG between 2006-2008. The ADB offered loan of US$154 million or finance 68.80% of the Lae port development project cost with counterpart funding of US$45.75 million or 29% financing from the GoPNG. The GoPNG counterpart funding was used for the implementation of SRP.

19. The ADB loan (i) loan 2398/99-PNG- for Lae port development project (hereafter LPDP) and 2 auxiliary grant project (ii) Grant: 9113 PNG-Livelihood and Social Improvement Project funded by the Japanese Government under the JFPR program at the cost of US$1.5 million and (iii) Grant 0102-PNG: Mobilizing the Private Sector to Respond to Gender and HIV/AIDS project funded by Cooperation Fund for Fighting HIV/AIDS in Asia and Pacific from a grant of US$ 0.75 million.

20. Since the grant’s effectiveness on 12 June 2008 (ADB Aide Memoire, July 2009), little was achieved, however, after the revision of the RP in March 2009, the revised SRP considered Personal Viability Course and SYOB trainings and Micro Banking as key components to prepare the AP prior to resettling.

21. The SRP was developed after the original Resettlement Plan (hereafter RP) could not be implemented in June 2008 due to land been disputed leading to land court injunctions taken up by BUP faction groups (traditional landowners) over the proposed site at portion 351 at Malahang Industrial land for resettlement. Attempted by the Morobe Provincial Government and EA to secure alternative land within Lae for the resettlement exercise was difficult; coupled with high development cost beyond the budget limits lead to the revision of RP to SRP.

22. Given the above difficult circumstances with the consequences of delays in implementing of the RP resulted in AP becoming more cooperative solving problem. In one of the AP general meeting held on 14th August, 2008; the AP and their mandated leaders passed a resolution that all 543 HH heads to receive cash payment whereby they will self resettled outside the project premises (refer to Appendix A). The resolution memoire was passed onto IPBC and ADB which lead to consecutive efforts put in place that resulted in final implementation of SRP.

23. Given the above difficult circumstances, ADB and GoPNG stakeholders considered the CAP concept in consultation with the AP. The consequences of the above difficulties caused delays in implementing of the Resettlement Plan and as such assisted well when consultative meetings were held with AP. The ADB mission visited the project included the GoPNG representatives during the period 15th to 17th November- 2008, where further consultative meetings were held with the AP. The consultative meetings concluded successfully with all affected people accepting the CAP payment solution.

24. The meeting also highlighted the North North East (hereafter NNE) Sodas settlement opposite Papuan Compound located within the project boundary from the PMU confirmed land survey. Furthermore, PMU conducted population and socio-economic survey at NNE Sodas in December 2008 and collected relevant data as additional to previous 483 HH from ADB List. The additional 69 HH was added to the list of affected people who were eligible as beneficiaries to CAP and in-kind assistance.

25. In order to confirm the exact numbers of HH, PMU conducted an audit, the verification exercise in August 2009. CD and AP leaders went into the project site and validating the persons and list of HH names against the list prepared in 2007 and December 2008. The result of the verification audit confirmed that three (3) names

were listed on church buildings, six (6) HH were either nonexistent or have permanently left the premises before 2007, single individuals with no house and others with ghost names. These nine (9) HHs were excluded from the CAP payment and other associated SRP activities after verification audit by AP leaders and CD team with concurrence decision made by the RIC. 26. The survey on the NNE included the AP HH and verification audit exercise was completed and a draft report was submitted to ADB and GoPNG in January 2009. The draft report was returned to the IPBC and the final draft was resubmitted to ADB and ADB no objection approval issued in April 2009. Subsequently, in June 2009 EA submitted the SRP budget estimate to GoPNG Department of Treasury to draw down the counterpart funding for the implementation of the SRP. The GoPNG through Department of Treasury transferred to IPBC Project Trust Account an amount of K26.90 million in September 2009. 27. IPBC, the EA for Lae Port Development Project managed by PMU2 with community development works that included communication and coordination of APs were lead by CD Team and did fantastic work. They continuously conducted awareness campaigns in all aspects of resettlement activities. The CD team consisting of the CD Manager, CD Coordinator and AP leaders were key spokes persons to ensure that all information regarding the SRP was disseminated down to the APs. The Morobe Provincial Administration was the lead EA for the JFPR thus supported the SRP process by approving the proposals for PV and SYOB Courses. The Morobe Provincial Administrator supported the relocation and repatriation exercise by allocating 30 government officers to actively participate in the program. 28. MPA as the authority in Lae city further assisted the IPBC by issuing of an eviction notice in January 2010 to the remaining persons (who were not eligible under the SRP CAP but came after the cut of date from February 8th 2007, whereas their names were not recorded on the DRI or CAP) resided back at Maus Markham after all AP have vacated the premises. These were the opportunists who were not eligible for CAP and have defied the laws of the state by moving into the project area without notifying IPBC or the local authorities and after all efforts have been put in place by IPBC and GoPNG for the repatriation of the affected people. These opportunists mostly males of about 50 to 60 people were finally evicted by the authorities towards the end of January 2010.

2.0 SRP Recognised Committees.

29. IPBC was tasked by ADB to established number of working committees (see Table 1: Committee Group). The major responsibilities of the SRP committees were to make decisions and coordinate the implementation of SRP. The table below indicates number of meetings conducted by each Committee group in 2009 and early 2010. Where the committee was not functional PMU and MPA provided continual support to make sure the roles were entertained and APs are being served accordingly. 30. The committees were functional except that the grievance committee was comprised of PMU CD team3, AP elected leaders, MPA representative and LULLG Ward three Councillor rather several attempts by IPBC to get independent legal bodies to be part of the team was delayed. The PSC conducted their inaugural meeting on 4th June 2010 and deliberated on the SRP. The PSC were made up of high powered executives of GoPNG National Departments and State Owned Enterprise, hence time on other priority areas had prevented them from meeting, as per records of meetings tabulated below.

2 PMU Team comprised (i) Ila Mari – Project Director, (ii) Sakeus Gem – CD Manager, (iii) Jack Stanley – CD Coordinator (iv) Edward Minis – Project Accountant (v) Adrian Bibiken’ – Contracts Engineer.

31. The other committees that took an active role in making decisions to progress the project were the RIC, PTT and Grievance Committee. These are Lae based members who could be available to handle issues daily and as the result were successful in accomplishing the tasks as presented by the SRP.

Table 1: SRP Committee Groups.

Working Committee No. Of Meetings General Comments Conducted. Project Steering 1 Held only one meeting at start of SRP rollout but Committee (PSC) ceased afterwards due to other commitments by members. Resettlement Committee none Morobe Provincial (RC) Administrator, IPBC Managing Director, Secretary for Department of Public Enterprise, and Minister for Public Enterprise and the CDP Manager as SRP Adviser. Resettlement 8 Comprised of PMU Project Director, CD Manager, Implementation Chairman of LCCI, Provincial Police Commander, Committee (RIC) Morobe Provincial Administrator Provincial Technical 5 Comprised of PMU CD team, PMA, AP leaders Team and LULLG Ward Councillor. Also the group played the role of Grievance Redress Committee. Grievance Redress 8 The meetings were mostly bi weekly meetings by Committee CD team with AP leaders to address issues and problems faced by APs. Note that most meetings apart from PTT meeting were directly held in the village with the concerned Households and disputing parties. (Ref para 86-88 and Table 4.) Weekly/Monthly tool box meetings mainly updates Project Management 24 on SRP progress and briefings. Unit (PMU) Meetings held to address immediate household Community 27 issues and problems and information Development Team dissemination to leaders as feedbacks to AP. (CDT) Community Meetings 12 Meetings held in the community hosted by elected leaders and members of AP.

32. The PSC and the RC consist of mostly senior executive managers of GoPNG National Departments who had no time to convene a meeting during 2009. PSC conducted their inaugural meeting on 4th June 2010. However, in the absence of the higher echelon committees and on behalf of these committees the RIC played major role in making decisions to coordinate all the SRP activities to successful completion in 2010. Whereas PMU CD team with the assistance from AP elected leaders and LULLG Ward Councillor addressed most of the grievance by members of the AP communities.

33. There was a joint effort from PMU, AP local leaders and members of MPA to addressed most of the HH disputes and issues at the AP level. They mediated between parties to resolve issues and challenges and disputes at the community and household level. Community Leaders also played major role in dealing with HH issues at village level. Some of the disputes were resolved through local district court system through Lae Court magistrate.

2.1 SRP Implementation Committees Meetings.

3.0 Deed of Release and Indemnity.

34. The DRI was the key document of SRP activity. The signing of the DRI allowed the individual HH head savings account to be opened and the release of K31, 116. 00 and additional in-kind assistance to the AP. The DRI executed between the AP HH heads, GoPNG and IPBC allowed the payment to happen when HH vacate the land and for HH head to indemnify the GoPNG and IPBC against any claims from third party. The AP had voluntarily vacated the premises within 60 days notice after the first 30% payment was made on 23rd December 2009.

3.1 State Solicitor Approval of DRI.

35. The DRI was drafted by IPBC and endorsed by PNG State Solicitor Office for execution and sent to Department of Treasury for concurrence. However, consultation process with Department of Treasury to concur the DRI to progress the execution of the DRI in April 2009 was slow and actually delayed DRI execution and therefore the SRP. Continued dialogue and consultation between IPBC, Department of Treasury resulted in the State Solicitor final issuing the legal clearance and approved the execution of the DRI on 1st June 2009.

3.2 DRI Awareness by IPBC Legal Officer.

36. The IPBC Legal Officer visited the project site between July and August 2009 to communicate the details of the DRI. The purpose of the exercise was to communicate to the AP the DRI contents in Tok Pisin language and to ensure that the AP understood the DRI before they could sign the agreement. 37. The legal officer visited all four affected settlements, accompanied by PMU/CD team, Local Leaders and MPA representative. A copy of draft DRI was given to AP leaders to read and explain to each HH head and their dependents respectively in their community after hours. Careful interpretation efforts by leaders and the CD team resulted in all AP agreeing and accepting the DRI and showing their eagerness to proceed with the execution of the DRI and eventually the CAP.

3.3 DRI Legal Interpretation and Execution.

38. The execution of the DRI commenced with PMU make prior arrangement for logistics to move 2,000 settlers and venues to accommodate the numbers. The MPG business arm, the Lae Bus Service (hereafter LBS) was contracted to provide mobility for 543 HH and their dependents who attended the presentation and signing at PNG University of Technology Duncanson Hall from 23rd to 28th November, 2009. IPBC also engaged the services of Rageau Manua & Kikira Law firm to further interpreted and explain the DRI details in Tok Pisin (Pidgin). Furthermore, prior to signing the DRI, the HH heads were given the privilege by having lawyers made available to each individuals HH head to clarify further queries during actual signing. 39. DRI was explained ‘communicated’ in Tok Pisin because many settlers or most are illiterate or have difficulty understanding technical legal terms in English. Therefore, the lawyers simplified the complicated legal terminologies to layman’s level of understanding to be understood by the AP. 40. Prior effort and effective communication of the DRI to the level that could be understood by the AP, achieve effective and efficient execution of the DRI by the each individual HH head. In is recorded that there was unanimously acceptance and agreement of the DRI, resulting in no objection amongst the total 543 HH head. The all of 543 HH heads successfully executed the DRI.

3.4 DRI Execution Footage.

4.0 Livelihood and Social Improvement Programs.

41. The Grant 9113: PNG: Livelihood and Social Improvement Program came under the Japanese Funds for Poverty Reduction (JFPR) and Managed by Morobe Provincial Government through Morobe Provincial Administration. MPA was appointed the Executing Agency for the above grant therefore; IPBC had no influence or authority to direct the MPA but work in consultation with MPA to execute components of the JFPR activities assigned to project in likes of AP training and other awareness campaigns. 42. The JFPR activities have been slow as MPA commitment as shown by their attendance to meetings seemed below average. Hence, programmes such as Agriculture Extension for Settlers and Micro-Credit Banking training and awareness have not come to fruition. Under above circumstances IPBC offers assistance and working in consultation with MPA approached NGO-Bris Kanda and NARI who were prepared and ready to implement the Livelihood and Social Improvement Programs (LSIP) and although delayed, arrangements have been made to continue the activities. IPBC in consultation with MPA arranged training for PV, SYOB and continuous awareness as well as Health Awareness campaigns conducted by NGO Groups to complete the SRP proposed activities. 43. Numerous consultative meetings were being held between IPBC and the MPG over the funds to be utilised for LEP; but little was forthcoming from the MPA. Perhaps, ineffectiveness of the MPA could be related to changes of officers in key positions in the Morobe Provincial Administration between the periods 2008 to June 2009. 44. The new Morobe Provincial Administrator, Mr. Kemasang Tomala, when appointed by PNG National Government in June 2009, allowed open door discussion with IPBC for the proposed livelihood improvement program. IPBC in consultation with MPA approved and facilitated the Training proposal submission to ADB for approval, which they issued no objection in August 2009. 45. The Personal Viability (PV) courses commenced from 14th October to the 6th November 2009. IPBC prior to training commencement went out to all four settlement with PV trainers and carried out road show and talked to people, of them been affected by the project and how PV can help prepare them before vacating the premises. 46. Nation Wide Micro Bank (NWMB) was approached by IPBC to provide service as trainers to conduct start your business training to the affected people. NWMB lacked capacity and lacked available skilled man power to conduct the training. Therefore, IPBC had alternatively sourced the service of PNG UNITECH Management Development Centre (hereafter PNGUMDC) that provided Start Your Own Business training to the 65 affected settlers.

4.1 Personal Viability Training (Refer to PV Training Report).

47. Entrepreneur Development Training Centre (EDTC) was contracted by IPBC through JFPR grant and administered by MPG. EDTC via their Momase Regional office in Lae facilitated six (6) PV training sessions at two different venues (Martin Luther Seminary & Boundary Road Catholic Parish) from 14th October to 6th November 2009. IPBC assisted through coordination of transport movement, provision of lunches and securing graduation venue for the graduation ceremony.

48. A total of 300 participants attended two weeks of training. The record figure showed 36% were women who were either HH heads or spouses. Many of those women attended PV exercised greater decision making in their family.

Table 2: PV Participants.

Attendance No. Affected Settlement Total % M % F Male Female 1 Maus Markham 105 45 150 70 30 2 Wara Tais 33 17 50 66 34 3 Sodas 32 28 60 53.4 46.6 4 NNE (Sodas) 20 20 40 50 50 Total 190 110 300 63.6 36.6

49. PV participants were allowed to give their testimonies for what they’ve learnt over the past two weeks and how they have used their knowledge to help improve their living when repatriated back to their own provinces, villages and communities.

50. Below were testimonies from three individuals out of 18 participants that volunteered to give their testimonies.

4.1.1 Testimonies from PV Participant.

51. Many of whom attended PV training went back to their community and shared what they have learnt to their spouses, friends and relatives. PV had helped reset the mindset, enhance paradigm shift in the mindset of settlers’ and consequently many were self encouraged to move out before IPBC actual repatriated them.

52. The effects of PV are yet to be materialised and can be monitored during the monitoring phase where IPBC and MPA will conduct their monitoring activities in the later part of 2010. However, few reports were received by IPBC Project Management team that some AP had put to good use the CAP received.

4.1.2 PV Execution.

The PV Program eventuated with awareness, road show by EDTC PV Coordinator, contractual agreement between EA & EDTC, facilitating of PV Course and organising graduation ceremony. Below are pictorial images of events that occurred throughout the execution of PV program by EA, MPA and EDTC.

4.2 Start Your Own Business Course.

53. The SRP also identified groups of local business men and women operating small businesses in the affected settlements. Therefore, IPBC through the JFPR grant contracted services from PNGUT Management Development Centre that conducted SYOB course to 65 participants from the 9th to 20th November 2009. The program was designed to train SOYB participants for two consecutive week intensive learning where most materials were provided during lectures and group discussions and presentations included practical assignments.

54. The 65 participants were the genuine interested households that were very interested in the start your own business course. PMU extended invitation to interested individuals in the affected communities but received little feedback. The APs were too eager to receive the CAP and go back home thus paid little attention to training, or have no regard to further improving their knowhow or plainly not interested as experienced by IPBC during the implementation of the SYOB training program. That gives little option to IPBC but to train only 65 households who represented more than 500 AP in their communities.

55. Unlike PV, SYOB trained the AP on business culture and how to become successful business men and women (Refer to SYOB Training Report).

Table 3: SYOB Participants.

Affected Attendance No. Total % M % F Settlement Male Female 1 Maus Markham 26 9 35 74.3 25.7 2 Wara Tais 7 1 8 87.5 12.5 3 Sodas 6 6 12 50 50 4 NNE (Sodas) 7 3 10 70 30 Total 46 19 65 70.77 29.23

56. Out of the 65 participants that successful attended the SYOB training 29% were women. Some of them have operated small trade stores, canteens, selling of betel nut (Areca catechu) at local market whereas most attended SYOB to learn how to start their own business so that they are able to start their own businesses after resettling at their desired location.

57. All 65 participants expressed their gratitude to the facilitators and the Japanese Government and ADB, for seeing them as affected people that needed training to help them sustain their lives. Many came from poor background and such training will helped shape their future if they take the seed capital from CAP and utilise it correctly to enhance their lives.

4.2.1 SYOB Participants.

Figure 1: AP local business men with their Figure 2: SYOB Participants Group Photos. SYOB course certificates.

4.3 NGO – Community Awareness Program.

58. The Non Government Organization groups have been involved with IPBC in carrying out HIV/AIDS and Testing, Condom Dance and Drama, Gender based violence against women, Rights of Women, Children’s Rights, Interim Protection, Law & Order, Men’s/Boys Health, Women/Girls Health, family Planning Method, Unwanted Teenage Pregnancies, Rape and Sexual Abuse, Physical mental and social violence awareness programs with business houses like Morobe Mining with other stakeholders like Tingim Laip (NGO), Catholic & Anglicare and others throughout Morobe Province. The involvement of the NGO groups was part of ADB and IPBC executing plan as captured in the Supplementary Resettlement Plan under the JFPR to involve various stakeholders like to partake in addressing social and health issues and preparing the affected people towards and empower them to make better decisions with the life after they were resettled outside the Lae Port Project premises.

59. The Community Awareness Program was funded by the JFPR Grant 9113: Livelihood and Social Improvement Program, to help poor nations to improve their lives above the poverty level. IPBC assisted MPA to facilitate and coordinate the program lead by PMU Community Development unit with the assistance and support given by AP leaders from Maus Markham, Wara Tais and Sodas.

60. The programs were conducted right in the vicinity of the three settlements whereby the NGOs were rotated within Maus Markham, Wara Tais and Sodas from 15th to 17th October 2009. Two meetings were held with the Leaders of the NGO groups from Lae Chamber of Commerce and BAHA group who organized and prepared the program to be executed by the NGOs. Before the commencement of the program briefing of team participation was done by PMU CD team and all facilitators were aware of the program and locations by which they will carry out their duties. After the completion of the awareness program final gathering was staged by PMU CD team to recapped on the completed tasks and evaluate the performance of the NGOs for the benefit of the group in future endeavors.

61. The NGO groups included BAHA (Business Coalition Against HIV/AIDS), Lutheran Life Care, PNG Poro Support, PNG Family Health, Soroptimist International, Lae Community Policing, Child Support, Family Help Desk,

4.3.1 NGO Community Awareness Footage.

5.0 SRP CAP Payments.

62. The implementation of the CAP took place between the period December 2009 and January 2010. The execution of the DRIs took only two (2) days to be accomplished; on 4th and 5th December 2009. Subsequently, after the completing the execution of the DRIs, PMU and community leaders concentrated on bank account opening with BSP bank so that the payment of the ADB CAP first installment of 30% per Household Account were remitted and to authorize the repatriation of APs to their provincee of birth.

5.1 BSP Bank Transaction to AP Account.

63. A total of K9, 334.80 was remitted from the BSP IPBC Project Trust Account into each of 543 HH head accounts in BSP Bank branch at Lae, on 22nd December 2009 as first installment. The funds were accessible by APs from BSP Lae branch on 23rd December 2009 (two days from Christmas day). 64. In accordance with the conditions of DRI, the second installment was effective after 60 days and after EA, MPA and AP leaders had confirm that the HH head and their dependents had completely moved out from the project area to a non-state land. In March 2010, those HH head that have fulfilled the requirements and conditions of DRI were paid their final installment representing 70% of the CAP. Those HH that had disputes and those who did not comply with the conditions of the DRI were withheld and later released after IPBC PMU addressed and resolved the issues pending their final payment. Resolving the issue with settlers over the 70% payment took less than a month to complete before the AP received the payment.

65. All payments were made through bank transactions from IPBC BSP Project account in Port Moresby to each individual HH accounts in Lae. There was no payment made in hard cash by stakeholders; all payments were remitted directly to the individual HH accounts via bank transactions. PMU assisted the affected HH to open up bank accounts for direct remittance of funds to individual accounts.

Fig 3 & 4: IPBC PMU officer assisting AP couples to open joint accounts with BSP Bank.

6.0 Repatriation.

66. IPBC PMU prepared the coordination and movement instructions and organized transport and logistics movement plan for more than 4,000 APs. PMU were assisted by MPA officials and PNGRC (police) in the movement of APs for repatriation out of Lae to Madang and highlands highway and resettlement within

Lae and nearby areas along the Markham highway, Situm and Gobadic areas. The land transport was provided by small business PMV owners who were engaged on the 21st to 31st December 2009 to transport the APs to areas within Lae. 67. The repatriation took place just after the ADB CAP payment first 30% was made on the 22nd 23rd December 2009. To minimize thefts and loss on property, the APs were tasked to dismantle their own homes and bringing their properties to a central location for loading. PMU provided 20 casual laborers to assist APs load their cargoes from project site and to unload them at their destinations within Lae. Apart from PMU assisting the APs to move their materials and personnel effects the AP took care of the safety and security of their belongings.

Figure 5: AP dismantling their own homes. Figure 6: APs gathered their cargoes.

6.1 Repatriation to the Highlands Region.

The following movements were coordinated by PMU:

68. A total of 185 APs from Eastern Highlands and Southern Highlands with their personal effects were transported to their provincial capitals; and were disembarked in Goroka and Mendi, respectively. A convoy of seven (7) by 25 seater buses and three by three (3) ton trucks were escorted by PNGRC (police), PMU and MPA personnel. This trip occurred on Sunday, 27th December 2009 was successful with no results of incident on the road. 69. The second convey transported the Simbu APs; consist of five (5) by 25 seater buses and two (2) 3-ton trucks. The convey carried a total of 110 APs with their personal belongings and were escorted by Police, PMU and MPA personnel. They were successfully disembarked at Kundiawa on 30th December 2009. 70. All the convoys were monitored by PMU and all the convoys sent back a situational report to PMU every two-three hours of their trip. The convoys with the assistance of the Police were well conducted with no incident report of road accidents or held up by criminal elements. At the receiving provinces, the escort officers delivered the APs to the central provincial police station where the receiving provincial representative waited and signed off the document as the AP disembarked with their cargoes. 71. All cargoes were thoroughly checked for illegal drugs and fire arms before loaded. At the assembly areas AP names were called and they voluntarily boarded the bus without hesitation or use of force. Many were happy to go back home and some even started celebrating at car parking lot. When they arrived, there were waiting village trucks available that took them straight to their village. Others decided to remain for a while at the provincial capital before travelling home at their own

expense as they have decided and agreed to though IPBC reluctant for them to travel straight home.

Fig 7: APP voluntary get on the buses Fig 8: Cargoes were loaded on 3 ton trucks. when their names were being called.

6.2. Repatriation to Madang and Bogia.

72. The Madang trip occurred on 28th December 2009 after the Mendi trip was completed. A total of 62 APs were transported to Madang with four (4) buses and one three ton truck on the first trip. As usual, all the APPs were disembarked at Madang town and each family had to make their own arrangement to their own villages. The APs have consulted IPBC that some villages were along the road and in upper inland areas whereas some families lived on the island not far from Madang. They insisted to go down to Madang and at their own time and will travel to the village because some have made own arrangements to stay at Madang and travel the next day. Others when dropped off at the bus stop got on village trucks and went straight home.

73. The second trip to Bogia in Madang province in January 2010 consisted of anotheer 50 APs from Sepik whom were transported and disembarked at Bogia patrol post. Many of these APs made their own arrangement by small out trigger canoes and banana boats to cross over to Angoram and to Wewak in East Sepik Province. The second trip was organised by IPBC to repatriate the opportunists (referred APs in paragraph 28) who came to settle at Maus Markham on portion 508 after the ADB census and listing of AP for CAP was closed.

74. Like the highlands trips, there was no casualty or difficulties faced by the APs and people along the road. The PMV operators did well; despite the fatigue experienced by the drivers they have managed to reach the destinations and back to Lae.

6.3 Repatriation to Wewak in East Sepik Province.

75. The East Sepik Province realized the highest number APs and thus it took EA to organise two sea voyages to move them all. The first voyage left Lae on 27th December and landed at Wewak on the 31st December 2009 on MV Solomon Queen. The MV SQ returned to Lae on 1st January 2010. Total of 311 AP were repatriated on the first voyage.

76. The second voyage occurred on 3rd January 2010. A total of 250 APs including men, women and children and their cargoes were shipped to Wewak. They arrived at Wewak wharf on 5th January 2010. The APs and cargoes were off loaded and

there were PMV trucks readily on standby at Wewak Port to transport some of the AP to their inland destinations.

77. Selected staff of PMU and MPA accompanied the APs on the sea voyage to Wewak and returned. Mr. Benjamin Warakai Deputy Provincial Administrator of ESP signed off as receiving officer at ESP head quarter. More than 511 APs were repatriated back to their own Sepik province.

Fig 9: APP cargoes shipped by containers. Fig 10: AP boarding MV Solomon Queen.

Fig 11: MV SQ Departed Lae Port. Fig 12: Farewell the APs at Lae Port.

6.4 Resettled within Lae City.

78. More than 120 families were relocated by Lae Bus transport to areas located in Lae, Markham, Nawai, and Huon Gulf districts.

79. PMU provided transport (3 LBS six tone trucks) to assist APs relocate their housing materials and other personal belongings outside the premises.

80. Even with the trucks provided some APs made their own arrangements and relocated their cargoes and housing materials at their own cost without invoicing IPBC or PMG.

81. There were twenty (20) hired casual laborers mostly local youths from nearby Papuan Compound engaged by IPBC as casual laborers to help APs loading and unloading their housing materials and other cargoes during relocation/repatriation process.

82. More than 1500 APs who opted to resettle in Lae either utilized the transport provided by PMU or made their own way out of the project area. PMU had kept a

track record of all those resettled in Lae and surrounding areas outside the vicinity of Lae City.

6.5 Resettled within Morobe Province.

83. Apart from the APs resettled in Lae. There were 17 who travelled by dinghies to their villages along the Huon Gulf coastline along the Huon peninsula. Another 20 APs were repatriated to Finschaffen district and 11 went to Siasi Island at the North Coast of Morobe. Furthermore, 30 APs drove up the highway to Bulolo district where they resettled. These were the population who opted to resettle in Morobe and most were from Morobe province.

6.6 Repatriation to Oro and Milne Bay Province.

84. There were 180 AP from Oro Province, 34 AP from Milne Bay and 48 from Port Moresby. The voyage commence on 10th January to end on 12th January, 2010. All APs on sea voyage disembarked at each Port in Popondetta, Alotau and Port Moresby.

85. All APs after disembarking from the Ports have made their own arrangement to their villages. There were no reports on casualties, incidents or problems encountered on these trips. Everything went so smoothly for the ship crews as well as the whole operations.

6.7 Repatriation to Rabaul and Bougainville.

86. Total of 17 APs travelled by commercial shipping to Rabaul and Bougainville. Nine (9) APs disembarked at Rabual East New Britain Province and the other eight (8) APs continued to Bougainville in North Solomon Province.

6.8 Repatriation to Port Moresby and Gulf.

87. Furthermore, a total of 31 APs included 8 HH heads and 23 dependents with women and children were transport by MV Kimbe Queen to Alotau and from there they transited to POM. Two HH heads and their family continued to Malalawa district in Gulf province. MVKQ was hire by IPBC for the purpose of transporting the AP to their province of birth.

7.0 Grievance Redress.

88. Most grievances were addressed by PTT4 also acted as Grievance Redress Committee consisted. Some cases were brought directly to PMU for urgent redressing the issues and provided solutions by the redress committee. There were court cases whereby PMU was represented by CD team to explain the DRI and the ADB Resettlement Policy on Involuntary Resettlement, which many legal authorities lack knowledge of or have little understanding of what was packaged in the SRP.

89. There were thirteen cases that appeared in Lae district court. Out of these on six (6) cases had seen IPBC was named as second and third defendants where as others were resolved without PMU presence at Lae courts. These cases were mainly on the ownership of houses where third party who own the houses prior to the ADB census in February 2007. The house owner vacated the premises some years before the census but returned to claim payment after learning of the SRP CAP.

4 PTT consist of (i) CDM and CD Coordinator (ii) Four AP elected leaders within the community (iii) LULLG Ward 3 councilor and (iv) MPA representative (v) PMU Project Accountant.

90. There were sixty five (65) statutory declarations given by APs to PMU as confirmation of resolution between two parties after they have resolved their own problems within the community and witnessed by their duly elected leaders and village elders. A total of 315 different cases (refer to Table 4) been redressed by the grievance redressed committee however not all came through the committee whereas some have been handled by community leaders themselves with the AP, others went through courts and or police who also played some role in addressing disputes.

91. All grievance received by PMU were treated as urgent and acted upon by CD and PTT. Any matters regarding SRP administration such as accounts issue were addressed with the banks or legal issues were addressed with IPBC legal officer that took not more than a week and information relayed back to the client. Community oriented HH problem were addressed on the same day when approached or appointment made to meet with the AP and CDM.

92. The turn over time for most grievance redress was not more than one week for individual household cases or in case of house ownership issue took approximately two to three weeks to resolve the problem after series of talks with the complainant and AP and reaching consensus.

93. CD team and the APs patrol weekly to the affected communities meeting with the APs and provide feedback to their queries and address issues and problems faced by individual HHs.

Table 4: Grievance Cases.

8.0 Conclusion

94. The concept of Resettlement activity in the history of infrastructure development in PNG was a new concept. The ADB Resettlement Policy covered Involuntary Resettlement, which was designed to move all the affected HH to a planned settlement stationed in one location. But to circumstances surrounding landownership issues that ended in court battles between faction clans from Butibam and Kamkumung villages and confronted with high development infrastructural development cost, the plan was abandoned as explained previously in this report.

95. The concept of resettling AP to Malahang portion 351 as per RP was revised and renamed the Supplementary Resettlement Plan (RSP). The plan was designed for each affected HH to resettle at their desired destinations. The SRP resulted in APs decided at their own will to be repatriated to their desired destinations and resettled on non-State land (customary land) or acquired State land within Lae and at their respective province of birth.

96. The SRP comprised CAP and repatriation was coordinated well by IPBC through its PMU, who were the EA of the Lae Port Development Project. The repatriation and relocation exercises involving more than 4,000 people were considered successful due to the fact that it was incident/accident free and all affected people reached their destinations safely. The success could also be measured by less than 10 numbers CAP issues that ended up in court and resolved with not impact.

97. The SRP has now been successfully completed and the IPBC have now embarked on the Monitoring aspects of the project, assisting Morobe Provincial Administration on JFPR components; community infrastructure improvement, agriculture extension and community based Floating Fish Caging of directly affected people and the indirectly affected people (Labu people). These activities will continue for the next two years.

98. In conclusion, although, Repatriation and Resettlement exercise was the first of its kind in PNG; all GoPNG stakeholders, ADB and NGOs and individuals who have participated in the exercise have done very well, resulted in successful completion of the SRP by 2010.

Appendix A: Affected People’s Resolution for CAP.