Resettlement Plan

April 2017

PAK: Punjab Intermediate Cities Improvement Investment Project

Sialkot Bus Terminal

Prepared by the Local Government and Community Development Department, Government of Punjab for the Asian Development Bank.

This 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.

Land Acquisition and Resettlement Plan

March 2017

PAK: Punjab Intermediate Cities Improvement Investment Project (46526-002)

Sialkot Bus Terminal

Prepared by the Local Government and Community Development Department, Government of Punjab for the Asian Development Bank. This 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.

CURRENCY EQUIVALENTS (as of 7 March, 2017) Currency unit – Pakistan Rupee 1.00 PRs – $ 0.0095 1.00 $ – PRs 104.8251

ABBREVIATIONS

ADB – Asian Development Bank ADC – Assistant District Collector CIU – City Implementation Unit DP – Displaced Person EA – Executing Agency GRM – Grievance Redress Mechanism GRC – Grievance Redress Committee IP – Indigenous People IR – Involuntary Resettlement ILA – Inventory of Lost Assets IOL – Inventory of Losses LAA – Land Acquisition Act, 1894 LARF – Land Acquisition and Resettlement Framework LARP – Land Acquisition and Resettlement Plan PICIIP – Punjab Intermediate Cities Improvement and Investment Project PIU – Project Implementation Unit RP – Resettlement Plan SCB – Sialkot Cantonment Board SMC Sialkot Municipal Corporation UU – Urban Unit

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DEFINITIONS

Compensation Payment in cash/voucher or kind to which the displaced people are entitled in order to replace the lost asset, resource or income.

Cut-off date Eligibility for entitlements under this LARP is limited by a cut- off date, to be determined and disclosed at the time of Social Impacts Assessment survey, census of displaced / displaced persons, inventory of losses and socioeconomic baseline survey.

Displaced Persons In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Economic displacement Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Entitlements All compensation, relocation, and income restoration measures due to displaced persons, specified by their property status and particular losses.

Income rehabilitation Assistance to restore and/or improve the incomes of displaced persons through allowances and provision of alternative means of income generation.

Inventory of lost assets Descriptive list of all assets lost to the project, including land, immovable property (buildings and other structures), and incomes with names of owners.

Involuntary resettlement Development project results in unavoidable resettlement losses that people displaced have no option but to rebuild their lives, incomes and asset bases elsewhere.

Kanal Measure of land area about 605 square yards. Eight kanals are equal to one acre.

Marla Measure of land area equal to 272 square feet. One kanal has 20 marla.

Mouza The smallest and basic revenue unit. Meaningful Consultation A process that: (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to displaced people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and, (v) Enables the incorporation of all relevant views of DPs and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

Non-titled DPs DPs without formal legal rights to land or claims to land recognized or recognizable under national law; eligible for compensation of non-land assets.

Physical displacement Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or no access to legally designed parks and protected areas.

Relocation Settlement of displaced persons in alternative location through relocation schemes organized by the project or government or through self-relocation.

Replacement cost Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Socio-economic survey Assessment of the social and economic conditions of the displaced persons through a combination of quantitative and qualitative research methods, providing a baseline for monitoring and evaluation.

Temporary land The use of or impacts on land and immovable property occupation outside the right of way of the project caused temporarily by civil works related activities.

Valuation of Lost Assets Assessment of the value of all lost assets according to the principle of replacement cost by qualified appraisal experts.

Vulnerable Person Households below poverty line including the elderly, disabled, female headed households, landless, without legal title to land and ethnic minorities.

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NOTES (i) The fiscal year (FY) of the Government of Pakistan, its agencies and participating financial institutions ends on 30 June. (ii) In this report, “$” refers to US dollars unless otherwise stated.

Table of Contents A. EXECUTIVE SUMMARY ...... 2 B. Project Description ...... 5 1. Sialkot Cantonment Board ...... 5 2. Sialkot Bus Terminal ...... 6 C. Scope of Land Acquisition and Resettlement...... 8 D. Socioeconomic information and profile ...... 10 1 Methodology ...... 10 2 Tools of Data collection ...... 11 3. Data Collection and Compilation ...... 11 4. Socioeconomic Profile ...... 11 5. Impact of the Bus Terminal Upgrade ...... 15 E. Information Disclosure, Consultation, and Participation ...... 16 1 Consultations with SCB and SMC ...... 16 2 Consultation Meeting at Bus terminal ...... 18 3 Concerns Expressed ...... 19 4 Suggestions Given ...... 21 5 Continuity of Consultations ...... 21 6 Stages of Consultations ...... 21 7 Information Disclosure ...... 22 F. Grievance Redress Mechanism (GRM) ...... 23 1 Timeline for Establishment of GRC...... 23 2 Grievance Handling Mechanism ...... 23 G. Legal Framework ...... 24 1 The Land Acquisition Act, 1894 ...... 24 2 ADB’s Policy and Resettlement Principles ...... 24 3 Legal Status on Security of Tenure ...... 25 H. Entitlements, Assistance and Benefits ...... 25 1 Eligibility ...... 26 2 Cut-off Date ...... 26 3 Entitlements for DPs ...... 26 4 Entitlement Matrix ...... 26 I. Resettlement Budget and Financing Plan ...... 27 1 Fund Flow Mechanism ...... 29 J. Institutional Arrangements...... 30 K. Implementation Schedule ...... 31 L. Monitoring and Reporting ...... 32 1 Internal Monitoring ...... 32 2 External Monitoring ...... 32

Appendix – I List of Participants in Consultation Meeting Appendix – II List of Potential DPs in Sialkot Bus Terminal Upgrade

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A. EXECUTIVE SUMMARY

The Project 1. The Punjab Intermediate Cities Improvement and Investment Project (PICIIP) will improve the quality of life of residents in selected cities of Punjab. The Program will address urban development challenges at the city level through integrated urban planning, improved institutional framework for urban services, strengthened business process of utilities and improved urban infrastructure and services.

The Subproject 2. The Sialkot bus terminal upgrade subproject will provide new infrastructure and services for passengers and transporters. The tentative plan for bus terminal upgrade includes provision of more shops, construction of a shed in bus departure area parallel to the private plaza, new waiting rooms and toilets. All these facilities are planned in the open space available in the bus terminal. 3. The PICIIP is project of the Government of Punjab and Sialkot Municipal Corporation (SMC) and both have no jurisdiction in the cantonment lands. An agreement between the SCB and SMC will be required for implementation of this subproject in Sialkot. 4. The bus terminal is under the management of SCB. The SCB earns income from rent of 109 commercial structures and fee on bus departures. In the current FY this fee collection contract is PRs 52.5 million. Out of the total of 109, 95 are shops and 14 structures are kiosks. Scope of Land Acquisition and Resettlement 5. In Sialkot no land acquisition required as all land is owned by the SCB. The preliminary design by PICIIP requires demolishing of many shops. The scale of displacement needs to be curtailed to a great extent to minimise the loss of assets and livelihoods in the revised design by PICIIP. The preliminary design is being revised by the consultant, which is expected to be completed by April 2017. Detailed design will be done by the civil works contractor upon mobilization. LARP will be updated following the detailed design. 6. This LARP is based on the preliminary design and assumes that the displacement of businesses in the revised design will be much less than 30%. This 30% displacement is taken as indicative measure for the revised design. Approximately 33 of the 109 shops from the bus terminal may potentially be temporarily affected. 7. There will be no impact on the bus/wagon operators as they will continue to operate from outside the bus terminal during the upgradation work. Consultations and Census Survey of Potential DPs 8. A census of all 109 businesses (95 shops and 14 kiosks) was carried out from 20 to 22 February, 2017 and consultation meeting with representatives of businesses at the bus terminal was held on 22 February, 2017. 9. Concerns included acquisition of shops and displacement of shopkeepers and their employees. They were informed that maximum effort will be made to avoid

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displacement, if any shop is acquired, the replacement shop will be provided on the bus terminal premises before acquisition. The size of shop will be same or larger than the acquired shop. The location of shop will be close to existing businesses and accessible to passengers. Rent of the shop will not be increased after upgrade of the bus terminal. Rent increase will be according to the terms and conditions in the tenancy contract. Shopkeepers felt satisfied and welcomed the implementation of subproject. 10. They gave suggestions for provision of various services in the bus terminal. These services include provision of (i) waiting rooms, (ii) toilets, (iii) clean drinking water, (iv) adequate lights, (v) storm water drainage, (vi) pavement of grounds, (vii) provision of parking space, (viii) provision of sheds in departure bays, and (ix) provision of parking space for buses. 11. The participants of consultation meeting were informed that their concerns will be addressed and suggestions for improvement incorporated in the design. They will be consulted again after preparation of design. Construction activities will be carried out in phases to avoid any disruption in normal business activities and bus departures. Subproject impact 12. This impact of the bus terminal upgrade is massive in the preliminary design and will be minimised to a very great extent in the revised design. The DPs will suffer from loss of livelihood and disruption of their business because of dismantling of shops. This impact of the subproject could be: i) loss of business/ livelihood, ii) loss of shop improvements, iii) loss of electric fittings and transfer of power meter, and iv) cost of relocation to new replacement shop within bus terminal. Grievance Redress Mechanism 13. Grievance Redress Mechanism will be established with the constitution of the Grievance Redress Committee at the time of disclosure of Urdu translation of Updated LARP to DPs. All grievances will be addressed within three weeks of their submission. Legal Framework 14. Legal Framework is provided by the Land Acquisition Act of 1894. Land acquisition is not required for the subproject as all land is property of SCB. The subproject may cause displacement of businesses and loss of livelihood. 15. There is no stated policy of SCB to provide replacement shop to DPs. This matter needs to be decided at the preparation of final design and before updating of this LARP, however the SCB agreed in a meeting on 31 January, 2017 with PICIIP consultants to provide replacement shops at the same rent and tenure to DPs In addition to the provision of replacement shops the DPs will also be provided with income losses, transition and shifting allowances. . 16. The ADB policy guidelines and the provisions provided in entitlement matrix will be followed for replacement of lost assets, compensation for relocation and restoration of livelihoods.

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Entitlements 17. Entitlements in this subproject include provision of replacement shop to DP shopkeepers, provision of allowances for temporary disruption of business, compensation for electric fittings in shops and transfer of power meter, and relocation subsidy for transportation of merchandise to new shop within the bus terminal. Relocation of Shops 18. All DP shopkeepers will be provided shop of the same size within the bus terminal by SCB. These shops will be provided on the same rent as charged on the demolished shop. Income Restoration 19. Income Restoration allowance equal to the five days average income of shopkeeper will be paid. Resettlement Budget 20. Resettlement budget will be prepared after updating of LARP following the preparation of final design. Indicative budget based on number of DPs at 30% of shopkeepers is worked out. The indicative budget is PRs 989,625 ($9520) estimated for 30% DPs. In numbers these 30% account for 33 DPs in total. Institutional Arrangements 21. The Project Management Unit (PMU) will provide policy guidelines and monitoring of the LARP which will be implemented by the City Implementation Unit. PIU will provide funds CIU will disburse compensation payment cheques to the DPs. The Social Safeguards Officer at the CIU will be the focal persons for DPs to assist in redress of grievances. Implementation Schedule 22. Tentative implementation schedule is given which will be updated after final design and preparation of updated LARP. The preparation and implementation of the updated LARP is expected by third quarter of 2018 after the detailed design has been completed and approved. Monitoring of LARP 23. Monitoring of LARP Implementation will be carried out internally by the PMU and external monitoring will be arranged through an external monitoring consultant or a local NGO. Internal monitoring reports will be prepared and submitted to ADB on quarterly basis and external monitoring reports will be prepared bi-annually.

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B. Project Description

24. The Government of Punjab intends to implement the Punjab Intermediate Cities Improvement and Investment Project (PICIIP) with ADB assistance. The PICIIP will improve the quality of life in selected cities of Punjab. This will be achieved by focusing on urban development challenges at the city level. The PICIIP will provide a framework for integrated urban planning, and the improved institutional framework required for urban development. The PICIIP will support investment in urban management and infrastructure, strengthen regulatory frameworks and municipal governance, and encourage efficient financial management for sustainable urban development. 25. The PICIIP will support five intermediate cities in two phases with a total of $500 million investment by ADB. The first phase of the project will support two intermediate cities with a total program of $250 million of which ADB will finance $200 million and the Government of Punjab will provide $50 million equivalent as counter part funds for the project. In the first phase this loan will be utilised for Sahiwal and Sialkot cities. The first phase of this loan will provide implementation of several infrastructure subprojects in each of the cities. The nature and extent of land acquisition and resettlement varies for every subproject under this first phase and will be addressed separately. 26. The PICIIP will provide infrastructure improvements for water supply, waste water, solid waste management, public parks and urban transport. The design and locations of these intraventions are not yet finalized. Further investigation will be carried out once the design and location of these intraventions is finalized and LARPs will be prepared to mitigate any LAR related impacts. 27. This LARP focuses on upgrade of bus terminal in Sialkot City. This bus terminal is established on the state land owned by the Sialkot Cantonment Board and land acquisition is not required. The subproject may require demolition of a small number of shops in the bus terminal. The revised engineering design of the bus terminal upgrade is being prepared. This is draft RP based on the preliminary design will be updated after final design of the subproject for assessing the impact and defining mitigation measures. 28. Award of civil works contract is conditional to the final LARP, approved by ADB while commencement of civil works is conditional to the full implementation of approved/final LARP, as verified by the external monitor. 1. Sialkot Cantonment Board

29. The subproject is planned for the upgrade of existing bus terminal. This is the largest and the oldest bus terminal in the city. This bus terminal is located on Jail Road in jurisdiction of the Sialkot Cantonment. This is under the management of Sialkot Cantonment Board (SCB). Cantonment Board has the same jurisdiction, powers and functions in the cantonment area as Municipal Corporation has in the city area. Cantonment Board is an organ of the local government for policy formulation, development planning and provision of urban services. Executive Officer of the Cantonment Board is responsible for management of civic infrastructure and services 6

in the cantonment area. A senior military officer is Station Commander of the cantonment and is ex-officio president of the Cantonment Board. 30. The bus terminal is in the cantonment area where all development works are planned and executed by the SCB. The development projects in SCB are either self- financed or financed by grants from the federal and provincial governments. The ADB loan is requested by the Government of Punjab and will be spent on subprojects in the city area of Sialkot which is under the jurisdiction of SMC and the Government of Punjab. The Cantonment area is under the jurisdiction of SCB and under the control of Military Lands and Cantonment Department of Ministry of Defence. Therefore, upgrade of this bus terminal will require concurrence and agreements between the SMC and SCB on engineering design, financing and income sharing. 2. Sialkot Bus Terminal

31. The total land area of the bus terminal is 27 acres all owned by the SCB. The northern corner of this bus terminal was given on long-term lease to some individual. This parcel of land measures (100-feet by 240-feet) about 2,6672 yards (a little over half an acre). The lease holder has built a multi-storey building which is used by businesses and offices. This parcel of land and Plaza is recognised as private property by the SCB and will be excluded from any intervention for upgrade of the bus terminal. Figure 1 below gives the existing layout of the bus terminal. Figure No. 1: Layout of the Sialkot bus terminal (Survey Map by PICIIP)

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32. The SCB owns large area of land on both sides of the Jail Road. The SCB has leased large parcels of land to two other private bus companies for their passenger terminals. Both these private bus company terminals are on the northern side of the Jail Road while the general bus stand is on the southern side of the Jail road. There are two mosques one on the north most corner of the Jail Road and the other close to the wagon stand in bus terminal. 33. The front of the bus terminal is divided into three departure bays on the Jail Road. The first departure area is for buses, the second departure area is for small buses known as flying coaches and the third area is for wagons. There are shopping areas comprising different types of shops inside the bus terminal and on the north- western boundary of the bus terminal. 34. The infrastructure on the bus terminal at present includes SCB staff office, waiting rooms for men and women, police post and some shops facing bus terminal and the backside of these buildings comprises various shops facing the wagon terminal. In addition to this there are shops along the north west boundary of the bus terminal and adjacent to all three departure bays mentioned in paragraph 20 above. 35. There are 95 shops and 14 kiosks in the bus terminal area which will benefit from the bus terminal upgrade. There are 10 other shops on the opposite side of the bus terminal which are unlikely to have any impact of the infrastructure development for upgrade of the bus terminal as these are located out side the bus terminal. All these shops and kiosks are owned by the SCB and sublet to shopkeepers on monthly rent. In February 2017, eight new shops have been constructed on the north-western boundary of the bus terminal. Three of these shops were given on rent and five are still vacant. No other infrastructure shown on the layout map is built. 36. Power connection is provided in 92 shops and the rest have no electricity connection and power meters. None of the shops have water and gas connections. 37. Many transport companies and transporters use this bus terminal for their services. These transport companies mostly operate without any office in the bus terminal with few exceptions. Staff of these transport companies has a desk and few chairs from where they operate bus services. 38. The total number of departures of bus and wagons from this bus terminal is about 300 per day. The SCB charges fee on every departure from this bus terminal. The departure fee of buses is in range of PRs 60 for small distances to PRs 1,500 for long distances. Fee rates are higher for air-condition coaches and slightly lower for non-air-condition coaches to the same destination. 39. Bus departure fee is outsourced to contractor. The total number of SCB staff on Contractor’s payroll in the bus terminal is 16 in addition to 12 staff appointed by contractor. The total contract value is 52.5 million for the current fiscal year from July 2016 to June 2017. The contractor deposits monthly instalment of PRs 4.375 million in the SCB account. The contractor pays monthly staff salaries to 28 persons which is about PRs 0.55 million and electricity bill of the bus terminal which is PRs 150,000 per month. 8

C. Scope of Land Acquisition and Resettlement

40. No land acquisition is required because all land is property of the SCB. This impact assessment is based on preliminary design for bus terminal upgrade prepared by the PPTA team. 41. At present the SCB has prepared a tentative plan for bus terminal upgrade which includes provision of more shops, construction of a shed in bus departure area parallel to the private plaza, new waiting rooms and toilets. All these facilities are planned in the open space available in the bus terminal. 42. This entire new infrastructure proposed by the SCB and shown in the Figure 2 is planned only for the northern portion of the bus terminal. The southern half of the bus terminal remains unutilised in the proposed infrastructure development by the SCB. The Defence Officers Housing Society is located on the southern and eastern boundaries of the bus terminal. The SCB indicated that no high rise building is proposed along these boundaries to preserve the privacy of the housing colony.

Figure No. 2: Layout Map of the Sialkot Bus Terminal with New Infrastructure proposed by the SCB

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43. The conceptual design of the subproject prepared by PICIIP required demolition of many shops in the bus terminal area (see Figure No. 3). The design proposes a large multi-storey complex that will have a lot of shops and offices. The conceptual design will cause extensive impact with demolition of a large number of shops and permanent loss of livelihood for a vast majority of businesses in the bus terminal. The conceptual design which comprises a multi-story building will violate the privacy of the Defence Officers Housing Society. The SCB has specifically mentioned that the upgrade should preserve the privacy of housing society. Therefore, PICIIP will prepare a preliminary design to minimise the impact on loss of livelihood and damage to the shops inside the bus terminal and to preserve the privacy of housing society. It is estimated that with the adjustments to be made in the preliminary design, the impact will be reduced to about 33 shops within the existing compound. The final impacts will be determined following the detailed design

Figure No. 3: Conceptual Design of the Sialkot Bus Terminal Upgrade by PICIIP

44. The first consultation meeting with representatives of businesses on the Sialkot bus terminal was held on 22 February, 2017 before the preparation of preliminary design for bus terminal upgrade. Participants of the meeting expressed concerns about loss of livelihood due to demolition of shops. They were informed that impact of the upgrade will be minimised to avoid any loss of livelihoods. It was further informed that the SCB will provide replacement shops before the demolition of 10

existing shops. Assurance was given to the participants that loss of livelihood would be avoided as much as possible in the preliminary design. 45. The SCB wanted to discuss the preliminary design which will be presented after its completion. The engineers of the SCB will discuss the revised design and give their suggestion for further improvement or changes. The SCB is the owner of the bus terminal and any intervention could be made only after its approval. After concurrence of the SCB, the preliminary design will be presented to the stakeholders at the bus terminal for their concerns and suggestions. These concerns and suggestions will be addressed in the final design as much as possible. The final design will be prepared by the PICIIP and approved by SCB and SMC. 46. There are two important milestones in this regard: 1) agreement between the SCB and SMC on upgrade of the bus terminal, and 2) agreement on modalities of financing and loan repayment. The Executive Officer of the SCB informed that modalities of the agreement will be decided by the higher authorities of the SCB. The Executive Officer however indicated that SCB will retain management of the bus terminal and may accept any other financing and repayment modality excluding income sharing from the bus terminal. The SCB will not share the income of the bus terminal with SMC after its upgrade under the PICIIP. 47. For the purpose of this LARP, the impact of the subproject is expected not to exceed 30% of the businesses. This is the maximum limit because at present shops are spread throughout the northern portion of bus terminal and in vicinity of the three departure bays. The actual impact could be much less than 30% but for the purpose of this LARP, 30% is used as indicative measure. The 30% impact means a total number of 33 shops. There will be no impact on the bus and wagon operators as they will continue to operate during the upgradation works. Similarly the SCB employees will also continue to work as per their current status. 48. This LARP will be updated after completion of the final design and agreement on it between the PICIIP and the SCB. The impact assessment will comprise: i) identification of the number of premises marked for demolition, ii) census of assets and DPs iii) identification of temporary loss of livelihood, iv) redefinition of entitlements and revision of the entitlements matrix, if required. After this impact assessment a realistic budget for implementation of LARP will be prepared.

D. Socioeconomic information and profile

1 Methodology

49. Methodology for census survey for demographic and socioeconomic data collection comprised preparation of research design comprising selection of variables for the survey and preparation of tools of data collection. Socioeconomic data of Sialkot City was already prepared under and the pre-feasibility study and poverty analysis and social development plan in the PPTA. The shopkeepers on the bus terminal work on the same place but are not a residential community living in any specific area. They are living in different localities of the city for which socioeconomic data already exist. The time schedule for preparation of LARP is very short;

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therefore, it was decided conduct complete census of all DPs and preparation of report. The census questionnaire included data collection on following variables: i) Population (age and sex) composition of the DP households, ii) School enrolment and level of educational attainment of household members iii) Status of employment of household members, iv) Average monthly income of the DPs from shops v) Any income of DPs from second source vi) Number of persons employed by DP for assistance in business activities vii) Wages paid to employees by DPs viii) Monthly rent of shops ix) Monthly expenditure on utility bills of shop x) Total value of merchandise in the shop, xi) Household income and number of income earners in the DP household.

2 Tools of Data collection

50. A simple semi-structured interview schedule with table for details of household members was prepared and pretested in the field before data collection. 3. Data Collection and Compilation

51. Five enumerators, all men with experience in field surveys for other projects were selected from Sialkot City for data collection. Training was provided to enumerators before the start of data collection. Data collection was carried out under two supervisors in the field for assistance to enumerators and for quality assurance. Data collection was completed in 3 days from 20 to 22 February, 2017. Data entry and compilation was completed in two days on 24 February, 2017. All 109 business establishments (95 shops and 14 kiosks) in the terminal were included in the data collection. 4. Socioeconomic Profile

52. Socioeconomic conditions of the business owners’ households were assessed through their income and business assets. Information about household members provides data about level of educational attainment, school enrolment and employment status of household members. 53. All these shops and kiosks were built and owned by SCB in different years with the expansion of the bus terminal. These have been provided to tenants on monthly rent which varies from shop to shop. The rent is increased after three years at the rate of 30%. 54. The monthly rent of these shops is in range of PRs 1,000 to 18,000. A vast majority of the shops, 76 in number (70%) pay monthly rent in range of PRs 1,000 to 3,000. About 19 shops (17%) have monthly rent in range of PRs. 3,001 to 5,000. About 6 shops (6%) have monthly rent in range of PRs 5,001 to 10,000. The 7 shops (6%) have monthly rent in range of PRs 16,001 to 18,000. Only one shop has rent of PRs 13,500.

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Table No. 1: Monthly Rent of Shops in Sialkot Bus Terminal

No. Monthly Rent of Shops and Kiosks in PRs Number Percent 1 1,000 – 3,000 76 70% 2 3001 – 5,000 19 17% 3 5,001 – 10,000 6 6% 4 13,500 1 1% 5 16,001 – 18,000 7 6% 6 Total 109 100

55. All shopkeepers are men and adhere to Islam. About 92% are married, 5% are unmarried and 3% are widower. Total population of all business owners’ households is 691 and the average household size is 6.3. Joint family system where families of married sons live with parents is predominant. The largest percentage of households (56%) has six or less number of persons. About 44% of the households have more than six persons. About eight households have the largest size of more than 10 persons. These data indicate large congestions of persons in 44% of houses.

Figure 3: Households by Number of Household Members 25

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15

10

5 Numberof Households

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56. Total population of respondent households is 691 persons, 373 male and 318 female. The sex ratio of 117 appears lopsided; perhaps some respondents have forgotten to provide information about their women or female children. Youth population under 15 years of age is 29% and old age population above 65 years is 4%. The total dependency ratio is 50% which means there are two working age persons per dependent in the population.

Table No. 2: Composition of Respondents’ Households Age of household members Male Female Total Percent 0 – 4 Years 34 34 68 10% 5 – 9 Years 31 29 60 9% 10 – 14 Years 38 34 72 10% 15 – 19 Years 41 44 85 12% 20 – 45 Years 151 123 274 40%

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46 – 65 Years 64 43 107 15% Above 65 Years 14 11 25 4% Total 373 318 691 100.00 57. Literacy statistics of population above 10 years age indicates that 29% are illiterate and 71% are literate. Number of illiterate women 87 is higher than the number of men which is 71. School age population 5-14 years of both sexes is enrolled in school. Sialkot has the highest rate of net primary school enrolment in the province according to Pakistan Standard of Living Measurement Survey of 2015. About 4% of the population has attained graduation and 1% attained post graduate qualifications. Among the 10 graduate women only one was employed as school teacher. Among men unemployment was reported for two postgraduates and two graduates. Table No. 3: Level of Education of Household Members No Level of Education Male Female Total Percent 1 Illiterate 71 87 158 29 2 Primary 43 27 70 13 3 Secondary School 138 101 239 44 4 Intermediate 26 22 48 9 5 Graduate 12 9 21 4 6 Post Graduate 5 2 7 1 7 Total 295 248 543 100.00

58. There are several different types of businesses on the bus terminal. The largest number of shops 53 (49%) comprising tuck shops and restaurants are selling food and beverages. These are followed by 21 (19%) motor repair workshops and 13 spare parts shops (12%). All types of old buses and wagons need frequent repairs and these shops meet the requirement. About nine shops are selling cell phones and electronic gadgets, four are barber shops and four shops are general stores selling different items. There are three hotels which provide low cost night stay for people coming from different areas for shopping or other purposes. One shop is used for as office of transport company and one shop sells books and magazines. Table No. 4: Types of Businesses in Sialkot Bus Terminal No Type of Business Number Percent 1 Tuck shop, fruit, juice, sacks 28 26 2 Restaurant and tea stall 25 23 3 Workshop 21 19 4 Spare parts 13 12 5 Mobile phones and gadgets 9 8 6 Barbershop 4 4 7 General store 4 4 8 Hotel 3 3 9 Transporter 1 2 10 Books and magazine 1 1 11 Total 109 100 14

59. All these shops have very good business as the bus terminal is very crowded as buses to all destinations depart from here. There is another private wagon stand which provides transport services to selected cities. 60. Average monthly income of shopkeepers ( after the deduction of all expenses and applicable taxes) is given in Table below. Income is generally reportedly low because of tax or some other apprehensions. About 64% of the shopkeepers reported income of up to PRs 20,000 per month which appears very low. About 20% reported income in range of PRs 20,001 to 30,000 and 8% reported income of PRs 30,001 to 40,000. About 3% each reported income in range of 40,001 to 50,000 and 50,001 to 80,000. Only 2% have income higher than PRs 100,000 per month. Table No. 5: Average Monthly Income of Shopkeepers on Sialkot Bus Terminal Monthly Income in PRs Frequency Percentage Up to 20,000 70 64 20,001 – 30,000 22 20 30,001 – 40,000 9 8 40,001-50,000 3 3 50,001 – 80,000 3 3 Above 100,000 2 2 Total 109 100

61. In 2016 planning commission of Pakistan fixed poverty line at PRs 3,030.32 per head per month as cost of basic needs. The average household size of respondents is 6.3 and this size of household will be in poverty if their income is less than 19,091. The monthly income of PRs 20,000 just close to the poverty line places them in vulnerable category. The income data provided by a vast majority of the respondents is not reliable from another angel. Sialkot is one of the least poor districts of Pakistan. In Sialkot 14.1% of the population was blow poverty line compared to provincial average of 31.4%. All shops are located in the busiest area where about 600 buses depart (300) and arrive (300) daily. It can be concluded that income data was not reported correctly by the respondents. None of the respondents’ households could be considered vulnerable at this stage. After preparation of revised design the impact assessment will be carried out for actual DPs and vulnerability will be assessed at that time. 62. About 74 shops (68%) have not employed any assistant while 35 shops (32%) have employed one or more persons for assistance. About 26 shops have one employee, 6 shops have two employees, and one shop each have three, four and five employees. About 16 shops were paying monthly salary of PRs 10,000 to their employees. About 5 shops paid monthly salary to employees in range of PRs 11,000 to 13,000 and another five shops paid salary of PRs 14,000 to 16,000. Two shops paid monthly salary from PRs 17,000 to 19,000 and seven shop paid their employees monthly salary of PRs 20,000 or above. 63. The total value of merchandise in shops is another indicator of volume of business and it appears that respondents have reported very low value. About 64 shops reported total value of merchandise in their shops at PRs 50,000, 15 shops reported value of merchandise in range of PRs 50,001 to 100,000; another 5 shops

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reported PRs 100,001 to 150,000. About 6 of the businesses reported worth of shop goods in range of PRs 150,001 to 250,000. Two shops reported worth of goods in range of PRs 250,001 to 300,000. Five shops reported value of merchandise in range of PRs 350,001 to 450,000. Six shops each reported value of goods in range of PRs 450,000 to 550,000 and above PRs 550,001, respectively. The small amount of less than 100,000 worth of merchandise was reported by 79 shops. The 28 tuck shops, 25 restaurants and 21 workshops (74 in total) may have small amount of investments. Table No. 6: Estimated Value of Merchandise in shops

No Worth of Merchandise Number Percent 1 Up to PRs 50,000 64 59 2 50,001 – 100,000 15 13 3 100,001 – 150,000 5 5 4 150,001 – 250,000 6 5 5 250,001 – 350,000 2 2 6 350,001 – 450,000 5 5 7 450,001 – 550,000 6 5 8 550,001 and above 6 5 9 Total 109 100

64. Women employment was not reported except by one household. This only graduate lady was employed as teacher in private school at very low salary of PRs 4,000 per month. Sialkot City has a very large proportion of men and women with artisanal skills. A vast majority of the sports goods, sporting gears, leather garments and surgical instruments are produced by men and women artisans working from their homes. None of the DPs reported working women in their households. There are many large scale industries in the city where both men and women are employed. Educated women are not working and neither reported unemployed. Majority of the parents consider marriage of daughters as priority and discourage employment of young unmarried women.

5. Impact of the Bus Terminal Upgrade

65. List of potential DPs is given in Appendix – II. 66. This impact assessment is based on the preliminary design of subproject. The preliminary design of the bus terminal envisages demolishing a large number of shops for building new infrastructure including multi-storey complex for shops and offices. The scale of impact was considered and revision of design was suggested. The preliminary design will be revised to minimise the impact and scale of displacement of businesses and livelihoods. This LARP is prepared on the assumption that the maximum displacement will be less than 30%. The impact on disruption of business and livelihoods will not exceed 30% of the total business which is 33 in numbers. 67. The DPs will suffer from loss of livelihood and disruption of their business because of dismantling of shops for new infrastructure development. This loss of livelihood will be temporary as the SCB will provide replacement shops to the DPs 16

prior to dismantling of the existing shops. They will however need to make improvements in shops and get power connection. The significant impacts are given below. Loss of business/livelihood 68. The dismantling of the shop will result in loss of livelihood due to disruption in business activities. The SCB will provide replacement shops prior to dismantling of existing shops even then the DPs will face loss of livelihood for a few days required for shifting to the new premises and establishing setting up business properly. Loss of Shop Improvements 69. The DPs will lose all improvements they had made in their existing shops for storage and display of goods. They can transfer shelves and showcases to the replacement shops. The fixing of shelves and showcases in the replacement shop will cause disruption of business for a few days. Loss of Electric Fittings and Power Connection 70. The DPs will face loss of power connection and will require transfer of their existing power connection to the replacement shop. They will require electrical fittings in the replacement shop prior to transfer of power connection. This entails cost of new electric fittings and payment of fee for transfer of electricity connection. E. Information Disclosure, Consultation, and Participation

71. A number of discussions/consultations were held with different stakeholders including, Executive Officer of SCB, Mayor and Chief Officer of SMC and other officials. Information disclosure about bus terminal upgrade was made to all stakeholders in different meetings and consultations in Sialkot from 31 January to 22 February, 2017. The CIU of PICIIP is not established in Sialkot until 22, February 2017. Information about the subproject was communicated to all shopkeepers on the bus terminal before the start of census of shop and kiosk owners. Representatives of the shopkeepers participated in consultation meeting held on 22 February, 2017. 72. After preparation of final design the SCB, SMC and the City Implementation Unit of Sialkot will disclose all relevant information about upgrade of terminals and relocation of businesses to all stakeholders. This draft LARP and the updated LARP will be disclosed on the ADB website. 1 Consultations with SCB and SMC

73. Meeting about subproject was held with concerned staff of Urban Unit at Lahore on 6 February, 2017. Information about preliminary design of Sialkot and Sahiwal bus terminals upgrade was provided. Cost of bus terminal upgrade was discussed and Urban Unit wanted to discuss cost estimates with senior government officers. Information about programme for preparation of LARP for Sialkot and Sahiwal bus terminals upgrade was provided. This meeting was attended by Deputy Team Leader and Social Development Specialist of PPTA and Due Diligence Consultant of ADB. 74. A number of discussions/consultations were held with different stakeholders prior to preparation of LARP. Consultations were held with Executive Officer of SCB,

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Mayor of Sialkot and Chief Officer of SMC and other officials. The subproject is located in the Sialkot Cantonment area outside the jurisdiction of SMC. Agreement between SMC and SCB is required on design of the bus terminal upgrade; modalities of financing and cost sharing or portion of loan repayment are yet to be discussed. Up to now, the PICIIP consultants are discussing bus terminal upgrade separately with the SCB and the SMC. No formal meeting for discussion on bus terminal upgrade was held between the SMC and the SCB until 22 February, 2017. 75. The SCB made it clear that it will retain management of the bus terminal and will not share profit of the bus terminal with SMC after completion of the upgrade. The SCB may agree on repayment of the portion of loan after agreement between SMC and higher authorities of the SCB. 76. Information about PICIIP and subproject for upgrade of bus terminals was provided to shopkeepers by the SCB staff posted at bus terminals and field teams conducting census of assets and socioeconomic survey. This was necessary to seek their cooperation in data collection in bus terminal. There is no association of shopkeepers of the bus terminal. Information about consultation meeting for bus terminal upgrade was provided to all shopkeepers and they were invited to attend this meeting. 77. Meeting was held with the Executive Officer of Sialkot Cantonment Board (SCB) about upgrade of the Sialkot bus terminal on 31 January, 2017. Participants of the meeting included Deputy Team Leader (DTL) of PPTA, Social Development Specialist, and the Due Diligence Consultant of ADB. The DTL briefed about the plan for bus terminal upgrade under PICIIP. The Executive Officer of SCB informed that bus terminal is located on the cantonment land and under its management. The bus terminal is in cantonment jurisdiction where SMC has no right to intervene. He informed that SCB is also planning some improvements in the bus terminal. SCB would like to collaborate with SMC in upgrade of the bus terminal but the Executive Officer alone cannot make any decision in this regard. The decision in this respect can be taken by higher authorities responsible for regulating the cantonment affairs. 78. The DTL informed that PICIIP is ADB project financed by loan to the provincial government. The SCB will have to share the loan repayment with Government of Punjab. The Executive officer informed that projects in cantonments are often financed with grants of the federal and provincial governments. If bus terminal is upgraded with ADB loan then SCB may agree to repay its share of the loan money. The Executive Officer informed that the matter will be referred to the higher authorities of the SCB and they can negotiate with SMC and Government of Punjab on this subproject. After the meeting bus terminal was visited by consultants with Revenue Collector of the SCB. 79. Following this meeting with the Executive Officer of SCB, consultants held meeting with the Mayor and Chief Officer of the SMC on the same day. DTL informed about discussions with the Executive Officer of the SCB about bus terminal upgrade. The Mayor of the SMC at the outset rejected the proposal for upgrade of the bus terminal in cantonment area. He wanted to establish a new bus terminal on another location at the outskirts of the city and wanted consultants to visit the proposed site for bus terminal. 18

80. The site proposed for bus terminal bus terminal the SMC Mayor was visited by the consultants with the Chief Officer of SMC on 31 January, 2017. This parcel of land is smaller than the existing bus terminal, it is crossed by road in the middle and there are several multi-storey buildings in the middle. The Chief Officer of the SMC informed that there will be no problem in acquisition of this land as it was earlier proposed for construction of truck terminal but the idea was later dropped. Consultants opined that this parcel of land may not be suitable for bus terminal as it had several multi-storey buildings in the middle and it is located at the outskirts of the city. This will cause displacement of people living in these buildings. The Chief Officer of SMC was informed to convey this to the Mayor and SMC may agree on upgrade of the existing bus terminal of SCB. 81. Another meeting was held with the Executive Officer of SCB on 20 February 2017 about census survey of assets on the bus terminal. The Executive Officer said that the multi-storey plaza on the northern corner of the bus terminal is private property and not part of the bus terminal. Therefore, it should be excluded from the census survey. He wanted to see the engineering design of the bus terminal upgrade and was informed that it is under preparation. The design after completion will be discussed with SCB. The Executive Officer informed that there had been no further discussions between the SCB and the SMC. He informed that the Project Director of PICIIP had spoken to some senior officers of the cantonments. The Executive officer informed that SCB is ready to negotiate with SMC on the bus terminal upgrade though approval of the agreement will be given by the higher authorities of the cantonments. He however informed that SCB will retain the management of bus terminal and will not share the percentage of profit with SMC. Any other modality for repayment of the portion of ADB loan can be considered by SCB. 2 Consultation Meeting at Bus terminal

82. SCB made arrangements for consultation meeting at the bus terminal on 22 February, 2017 at 1200 hours. Information about meeting date and time was provided to all shopkeepers in the bus terminal by SCB staff and census survey team. Information about purpose of consultation meeting: (i) information about bus terminal upgrade, (ii) document and address their concerns in design, (iii) incorporate their suggestions in design, was provided to all shopkeepers. 83. Consultation meeting was held with the affected persons as scheduled at the bus terminal at 1200 hours on 22 February, 2017. The meeting was attended by a total of 22 person out of which 20 were shopkeepers, one transport manager and one driver. The Secretary of the SCB Cantonment Board participated in consultation meeting. The Deputy Team Leader of the PPTA consultant and LARP consultant conducted consultations. LARP team participated in the meeting. The Due Diligence Consultant of ADB attended the consultation meeting. The meeting lasted for nearly two hours. List of participants with their signatures is given in Appendix – I.

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View of the Consultation Meeting at Sialkot bus terminal

84. Consultation meeting was held in free and fair atmosphere. All participants have expressed their concerns and gave suggestions for upgrade of bus terminal. 85. At the beginning of the meeting participants were informed about the PICIIP and its subprojects for improvement of water supply, sanitation, solid waste management, improvement of public parks and urban transport that included upgrade of the bus terminals. They were informed that engineering design for upgrade of bus terminal is under preparation. Consultations of design will be held with SCB. The design will be presented to all stakeholders to document and consider their concerns and suggestions. 86. They were informed that the SCB will not evict any shopkeeper and will not increase value of monthly shop rent after completion of bus terminal upgrade. The construction plan will be prepared to minimise any disruption in business activities on the bus terminal. 3 Concerns Expressed

Acquisition of Shop 87. The most important concern was about eviction of shopkeeper for infrastructure development. The upgrade plan may require dismantling of shops in some area of the bus terminal. In this case some persons may be displaced and their livelihoods destroyed. They were informed that no one will be displaced as a result of 20

bus terminal upgrade. If any shop is demolished, the shopkeeper will be provided replacement shop before its acquisition.

View of the Consultation Meeting at Sialkot bus terminal

Accessibility of shop 88. Concern was expressed about size and location of replacement shops. DPs informed that shops at some distance from bus departure bays have little business. They asked for provision of shops close to the departure bays and accessible to passengers. This concern was noted and they were informed that replacement shop will be accessible to passengers. Size of replacement shop 89. Another concern was about the size of replacement shop. They wanted the same size replacement shops. They were ensured that replacement shop will be of the same size or larger than the acquired shops.

Increase in Rent of Shop 90. Another concern was about increase in rent of shop after completion of bus terminal upgrade. They were informed that the terms and conditions of their tenancy

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contract which include 30% increase in rent of shop after three years will remain unchanged. 4 Suggestions Given

91. Following nine suggestions were given for the improvement of bus terminal: i) Provision of waiting passenger’s rooms ii) Provision of toilets iii) Provision of clean drinking water iv) Provision of adequate lights v) Provision of storm water drainage vi) Pavement of all bus stand vii) Provision of parking space for vehicles viii) Provision of sheds at bus departure areas, ix) Provision of space for parking of buses

92. Participants were informed that their concerns and suggestions have been documented and will be considered in preparation and finalisation of design for bus terminal upgrade. Further consultation meetings will be held after completion of the revised engineering design to ensure that their concerns are addressed and suggestions are incorporated. 5 Continuity of Consultations

93. These preliminary consultations were held to document their concerns and suggestions before the finalisation of engineering design for bus terminal upgrade. The consultations shall be held after preparation of design. The design shall be presented and explained to stakeholders to confirm that their concerns are addressed and their suggestions are incorporated. 94. The infrastructure development may require any acquisition of existing shop in the bus terminal. Consultations shall be conducted again and concerns of DPs addressed in satisfactory manner. The DPs in this regard shall be protected and new shops provided before the award of construction contract for infrastructure development to protect the livelihood. 95. Consultations with the DPs shall be made continuous process for addressing their concerns, incorporating their suggestions and protecting their livelihoods.

6 Stages of Consultations

96. These preliminary consultations were held to document concerns and suggestions of the potential DPs before the finalisation of engineering design for bus terminal upgrade. Consultations will be held at following stages of the subproject.

Consultations on Revised Preliminary Design of Bus terminal 22

97. The revised design of the bus terminal shall be prepared on A-1 size sheet with clear description of different elements and symbols. It shall clearly mention the number of shops to be dismantled and where the replacement shops will be provided before the award of contract for civil works. It shall provide information about the size and location of passenger sheds with other facilities. Provide details of construction plan and phases of construction to ensure that normal business activities and bus departures are not affected. This design shall be explained to all potential DPs and their concerns and suggestions shall be documented. Consultations on Final Design of bus terminal 98. The final design shall be prepared addressing concerns and incorporating suggestions provided by potential DPs during consultations on the revised preliminary design. The presentation shall be made with detailed drawing on A-1 size sheet for clear understanding of the DPs. This design will hopefully address all the concerns and inclusive of all suggestions. It is possible that some DPs may still have concerns and suggestions as they may not be able to fully understand the drawing. Their concerns shall be listened and explanation shall be provided for their satisfaction. If there are some suggestions for further improvement these shall be documented and incorporated in the design. Consultations before Dismantling of Shops 99. The new replacement shops shall be constructed before the start of civil works. DPs shall be consulted before allotment of replacement shops. The date for vacation of existing shop and occupation of new shops shall be discussed and agreed with all DPs. The Social Safeguard Officer at the CIU will provide assistance with documentation required for contract with SMC and transfer of electricity connection to the new shops or for any other purpose. Consultation at Award of Civil Works Contract 100. These consultations shall be held with all stakeholders and DPs on the bus terminal to document and address their concerns and suggestions for construction activities. They may express concerns about environment, health and safety. Commencement of civil works causes severe disruptions because contractors heap construction materials on all open spaces in the work area. This may cause problems for passengers and businesses. Construction site is usually not covered and protected by the contractor which is hazardous for the passengers and businesses. Construction of different elements of infrastructure is started without sequence and nuisance is created for all. All stakeholders shall be prevented from dust and noise pollution during construction.

7 Information Disclosure

101. During the census and socioeconomic survey of shops in the bus terminal information about the subproject and its potential impact was provided to all shopkeepers. This information was disclosed by the SCB bus terminal staff and survey team supervisor and enumerators. The information was again disclosed at the

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consultation meetings held with representative group of shopkeepers at the both bus terminals. 102. The LARP will be made available to the DPs by the Executing Agency through CIU for review and comments on the policy and mitigation measures, particularly the livelihood restoration package. 103. Summary of the LARP including the entitlement matrix will be translated in Urdu and will be made available at the local public offices such as the SCB, SMC, CIU, transporters and shops union offices of the stakeholders for their inputs prior to the approval of final design and award of civil work contract. 104. The Social Safeguards Officer of the CIU will provide information about impacts and entitlements of compensation to DPs. The officer will facilitate DPs and other stakeholders in clear understanding of the impacts and entitlements. 105. This LARP will be updated after final design of the bus terminals upgrade is prepared. Impact of the subproject will be assessed and the DPs will be identified. The updated LARP in English will be disclosed on the ADB website.

F. Grievance Redress Mechanism (GRM)

106. The PICIIP will provide specific complaint and grievance redress mechanism to ensure that the compensation for livelihood restoration have been implemented accurately and fairly, alleviating any adverse effects on the DPs. In this regard Displaced Persons Committee (DPC) will be established comprising DP shopkeepers, union representative and a representative of SCB and SMC. 107. At the Project level, the PICIIP will provide GRM to ensure facilitation of the DPs in all respects. The Grievance Redress Committee (GRC) will be established at the City Implementation Unit (CIU) of PICIIP at Sialkot. The GRC will ensure to redress specific complaint and any issues related to disruption of businesses or any affect on the livelihood of DPs. The GRC will address complaints accurately and fairly, alleviating any adverse impacts on the DPs. The committee will be headed by the Secretary of the SCB while its member may include Chief Officer of the SMC, representatives of the DPs and transporters and shopkeepers unions, elected representatives and line /departments. The claims of the grievance will be reviewed and resolved GRC within three weeks from the date of submission. 1 Timeline for Establishment of GRC

81. GRC will be established at the completion of updated LARP following the preparation and agreement on the final design of the subproject. The proposed cut- off date for this LARP is identification of DPs for updated LARP and this may coincide with establishment of GRC.

2 Grievance Handling Mechanism

82. To enable a DP to appeal against any disagreeable LAR related decision, practice or activity the following grievance redress mechanism will be instituted explained below. 24

Step One: Grievances of DPs will first be brought in writing to the attention of the concerned DPC. Resolution is sought within 10 days at the local level through the involvement of the CIU, SCB and SMC representative. Step Two: The grievances not addressed at the DPC level will be referred to GRC. Grievance regarding compensation of other types of assets and income losses can be re-lodged with the CIU who will respond within 30 days. Step Three: If grievance still remains unaddressed, it can be lodged by the DP with the GRC. The DP must produce all relevant documents supporting her/his claim. The GRC will review and rule on the issue(s) within 21 days. The decision must be in compliance with the provisions of the updated LARP. Step Four: If the grievance redress mechanism fails to satisfy the aggrieved DP, he/she can submit the case to the appropriate court of law as set out in sections 18 to 22 of the LAA (1894).

G. Legal Framework

1 The Land Acquisition Act, 1894

108. The Government of Pakistan legislation governing land acquisition for public purposes is the Land Acquisition Act (LAA) of 1894 with successive amendments. The LLA regulates the land acquisition process and enables the federal and provincial governments to acquire private land for public purposes. The LAA specifies a systematic approach for acquiring and provisions for fair and adequate compensation for land acquired involuntarily. However, the LAA is silent to provide income/livelihood rehabilitation measure, allowances for severely affected DPs and vulnerable groups, or resettlement expenses. There are no legal provisions requiring the government under the LAA to restore .livelihood or to provide assistance towards the restoration of such livelihoods relevant to the DPs for this subproject. 109. There is no land acquisition required for this subproject. The DPs will require restoration of livelihood and compensation for disruption of business and subsidy for transfer of business to other shops. In this regard ADB policy on resettlement will be followed to address all concerns of the DPs.

2 ADB’s Policy and Resettlement Principles

110. The ADB Social Policy Statement 2009 in Involuntary Resettlement is based on the following principles: i) Involuntary resettlement will be avoided as much as possible when unavoidable, at least minimized by reviewing alternatives to the project; ii) Where involuntary resettlement is unavoidable, DPs are entitled to compensation for all types of losses, i.e., land, crops/trees, structures, business, employment, and wages at market/replacement value. iii) Non-titled DPs including informal dwellers/squatters and encroachers will be provided compensation and rehabilitation assistance. The absence of formal title to land is not a bar to resettlement assistance;

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iv) Special assistance will be provided to DPs from vulnerable groups to help improve their economic and social status; v) Access to infrastructure will be provided to communities equally, without discrimination on the basis of religion, social status, gender or any other factors; vi) DPs will be fully informed and consulted regarding project planning and implementation, including disclosure of LARPs and other project-related information; vii) Physical project implementation works can only commence upon completion of compensation and rehabilitation measures before a No- objection Certificate can be provided by ADB for award of civil works contracts. viii) The full resettlement costs are included in the costs of the project and may be considered for inclusion in ADB loan financing. 111. The ADB policy provisions will be applied for the subproject, i.e. ensuring all shop renters are accommodated in the new stalls at the same rental rates/arrangement, support during the transition and vulnerable households, establishment of grievance redress, consultations and resettlement monitoring and evaluation. 3 Legal Status on Security of Tenure

112. All these shops in both bus terminals have been built at different times and sublet with the expansion of the bus terminal. All shops and kiosks were built by SCB and sublet to shopkeepers. The tenants have security of tenure as long as they abide by the terms of tenancy contract. Rent of shops and kiosks vary because of location. All shops are required to pay rent on monthly basis. SCB increases rent of shop after three years and rate of increase is 30%. 4 Policy on Replacement Shops 113. There is no stated public policy of the SCB on provision of replacement shops to the DPs of the bus terminal upgrade. The Executive Officer of the SCB in meeting held on 31 January, 2017, agreed to provide replacement shops on the same rent to DPs. At that time the preliminary design was not prepared and the extent of displacement was not known. The matter will be discussed again after agreement of the SCB, SMC and the PICIIP on the final design of bus terminal upgrade. The SCB has built 8 new shops in February 2017, three were given on rent and five were vacant. The issue will be raised at the time of final design when the impact of subproject and the extent of shop acquisition are known.

H. Entitlements, Assistance and Benefits

114. The exact dimension of the upgrade of the bus terminal can only be ascertained after finalisation of the detailed engineering design. However, during the stakeholder consultation, it was agreed that the upgrade of bus terminal will be done without any disruption to the normal business activities. The project will avoid any 26

permanent displacement and will provide resettlement of existing businesses. In case if any acquisition of shop is required the DPs will be provided replacement shops prior to acquisition. 115. Replacement shops will be of the same size as the dismantled shops and will be provided on the same rent as the dismantled shop. The rent of shop will not be increased after completion of the bus terminal upgrade. 1 Eligibility

116. In the event that any shop or shops are displaced, the SCB will provide replacement for the lost premises prior to its acquisition. In this case the DPs will be entitled for shifting allowance. The DPs are eligible for compensation and rehabilitation provisions under the PICIIP as follows:  All DPs losing shop will be provided replacement shop by SMC.  Relocation compensation to cover the cost for shifting merchandise to replacement shop  Compensation for temporary loss of business for a few days. 2 Cut-off Date

117. After updating of the LARP, cut-off date will be announced by the CIU Sialkot through SCB and SMC. Anyone who claims to be DP in the bus terminal after the cut-off date will not be eligible for compensation. 3 Entitlements for DPs

118. The following entitlements are applicable for DPs losing business premises. Replacement of Shop will be provided prior to acquisition of existing shop. Relocation Compensation will be provided to those DPs who are forced to relocate and will receive a relocation subsidy equal to five days minimum wage. Compensation for Temporary loss of business, compensation for temporary loss of business during relocation will be provided. Compensation for Electricity Fittings, The SCB shops are provided with electric fittings and power connections. The replacement shops will have power connections and fittings. In case these are not provided compensation for electricity provision will be made in entitlements. 4 Entitlement Matrix

119. Based on the inventory of losses, the Entitlement Matrix outlined below reflects the core involuntary resettlement principles to ensure DPs of their entitlements.

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Table No. 7: Entitlement Matrix

Type of Specification Type of DPs Compensation entitlements Loss

Loss of shop Business All DP Provision of Replacement shop prior to shopkeepers acquisition of existing shop

Temporary Transitional All DPs Cash compensation maximum of 3 days during Business business shopkeepers the interruption period, as per average monthly interruption Allowance income of shopkeepers reported during census survey.

Transitional Daily income Employees/ Cash compensation maximum of 3 days during Income loss loss Workers the interruption period, as per minimum wage

Relocation Transportation All DPs Equivalent to daily minimum wage of five of merchandise shopkeepers persons

Power Restoration of All DP Fee for transfer of power connection and power Connection power Shopkeepers meter Transfer

Electricity Restoration of All DP Electricity fittings in the replacement shop Fittings power Shopkeepers

Relocation of Displaced Persons 120. Initially this was agreed that SCB will provide replacement shops within the premises of the bus terminal to DPs prior to acquisition and dismantling of their existing shops. At that time the extent of displacement was not known. The extent of displacement will be known after agreement between stakeholders on the final design. The provision of replacement shops and relocation will be finally decided at that stage. Income Restoration and Rehabilitation 121. The subproject implementation may require dismantling of shops for infrastructure development. This may result in temporary loss of livelihood for a few days during relocation of shop within the bus terminal. The temporary loss of income is not envisaged more than a few days. The shop workers, if any, will not be affected as the shopkeeper will be provided relocation subsidy for shifting of merchandise to the replacement shop. The relocation subsidy will be equal to minimum wage of five days. The shop worker, if any will be paid by the shopkeeper from this relocation subsidy. Details are provided in following section on Resettlement Budget and Financing Plan. I. Resettlement Budget and Financing Plan

122. There is no engineering design at this stage and impacts of infrastructure development for bus terminal upgrade are not known. Therefore, the exact budget requirements cannot be determined. After preparation of final engineering design, impact assessment will be carried out and consultations with stakeholders to be conducted. The EA will ensure that adequate funds for resettlement are allocated during the course of project implementation. 28

123. Estimation of an Indicative resettlement cost is given. The impact cannot be assessed before the preparation of final design. The LARP update will be prepared to assess the impact and provide details about the DPs. The indicative budget is based on the assumption that a maximum of 20% of the shopkeepers will be displaced. Total number of businesses is 109 comprising 95 shops and 14 kiosks. The budget is prepared on the assumption that the total number of DPs will not exceed 30% of businesses. The 30% displacement means relocation of 33 shops in the bus terminals. 124. The cost elements in the budget include (i) compensation for temporary loss of income during shifting of shop to new location within the bus terminal. The estimated cost is equal to the average daily income of shopkeepers computed from the income data provided by them and reported in Section C. The average monthly income as reported by the shopkeepers is PRs 19,220. The average daily income for 25 working days a month comes to PRs 770. It is assumed that respondents have reported low income under any apprehension. Therefore, compensation could be PRs 1,000 per day. Since the DPs will be provided with replacement shops before being asked to relocate, therefore, the temporary compensation for disruption of business will be equal to three days income. The DPs will be paid PRs 1,000 per day for three days at the rate of PRs 3,000 per DP. 125. The relocation shop will be provided within the bus terminal. The cost of transportation is estimated at five days minimum daily wage. The five days wage is PRs 2,500 based on daily wage rate of PRs 500. Every DP will be paid relocation subsidy of PRs 2,500. 126. The provincial government will be responsible for releasing the funds for resettlement in a timely manner. 127. The electricity fittings cost is estimated at PRs 10,000 per shop. The fee for transfer of power connection and meter is about PRs 5,000 per connection. The DPs will be paid power fittings and restoration allowance of 15,000 per shop. 128. All the DPs will be allowed to take all salvageable materials without any deductions. 129. The indicative resettlement cost for 33 DPs is the subproject is Rs.989,625. The resettlement cost items and estimates are outlined in Table 8.

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Table 8: Indicative Budget of Compensation Costs

Unit Rate No. Resettlement Cost Items Units PRs PRs

Temporary Income loss due to shifting of shop, 1 approximately for 5 days (1,000x5) 33 5,000 165,000 2 Transfer of goods allowance (500x5) at PRs 2,500 33 2,500 82,500 3 Electricity fittings in the replacement shop 33 10,000 330,000 4 Power connection and power meter transfer fee 33 5,000 165,000 5 Monitoring & Evaluation: Consultancy Firms Lump sum 200,000 6 Sub-Total 942,500 7 Contingencies (@5%) 47,125 8 Grand Total Cost (PKR): 989,625 9 Total Cost (US$) 9,520

130. The budget for resettlement will be revised following the impact assessment and identification of actual number of DPs. The EA will ensure that adequate funds for resettlement are allocated in the PC-1 of the subproject. 1 Fund Flow Mechanism

131. Funds for all lost businesses, relocation and transfer allowances of updated LARP preparation and implementation will be provided by the EA. The cost of external monitoring can be financed under the loan. To ensure the availability of sufficient funds EA will allocate 100 percent of the cost of allowances anticipated and estimated in the updated LARP before its implementation. 132. Payment of compensation will be made prior to the actual start of work. DPs eligible for compensation will be given advance notice of the date, time, and place of payment through public announcements. 133. The Government of Punjab will guarantee to supplement the resettlement budget, as may prove necessary, to meet any shortfall which emerges in achieving the resettlement objectives. 134. The resettlement implementation schedule will be updated based on the subproject construction timetable agreed by Government of Punjab and ADB. The PIU will update this LARP and ensure that (i) resettlement impacts are accurately quantified, (ii) detailed mitigation measures formulated, where necessary, (iii) new information is disclosed to displaced persons, and (iv) the updated list of DPs is submitted to ADB for concurrence prior to commencement of infrastructure development for upgrade of bus terminals. 135. Funds for all lost businesses, relocation and transfer allowances and administration of updated LARP preparation and implementation will be provided by the EA. The cost of external monitoring can be financed under the loan. To ensure the availability of sufficient funds for all LAR tasks the EA will allocate 100 percent of 30

the cost of allowances anticipated and estimated in the updated LARP before its implementation. 136. The funds for implementation of LARP will be provided by the PMU and disbursed by the CIU.

J. Institutional Arrangements

137. There are four institutions responsible for the subproject (PMU, CIU SCB SMC). The Local Government and Community Development Department is the executing agency of PICIIP. The Project Management Unit (PMU) will be responsible for policy guidelines and to ensure smooth implementation of the project. 138. The Sialkot Cantonment Board is headed by the Executive Officer. Cantonment Board has the same jurisdiction, powers and functions in the cantonment area as Municipal Corporation has in the city area. Cantonment Board is an organ of the local government for policy formulation, development planning and provision of urban services. Cantonment Board is alos local government institution with elected embers and chairperson same as the municipal corporation. Executive Officer of the Cantonment Board is responsible for management of civic infrastructure and services in the cantonment area. A senior military officer is Station Commander of the cantonment and is ex-officio president of the Cantonment Board. 139. The Sialkot Municipal Corporation (SMC) is elected body headed by Mayor and responsible for local government functions in the city. The management of SMC is headed by the Chief Officer of the Municipal Corporation. Chief Officer is assisted by municipal officers responsible for infrastructure and services, finance, regulations, and planning and coordination. The SMC is responsible for policy formulation, infrastructure development and management of municipal services and civic facilities in the city. 140. PMU will establish a City Implementation Unit (CIU) in Sialkot City. The CIU will be headed by the City Manager and assisted by infrastructure engineer, urban transport manager, solid waste management engineer, procurement manager in addition to several assistant engineers. The CIU will have Social Safeguards Officer responsible for different functions required for implementation of LARP for different subprojects in Sialkot. CIU in coordination with SMC and SCB will be responsible for review of infrastructure subproject for bus terminal upgrade. The CIU will be responsible to PMU for implementation of subprojects in the city. CIU will be responsible for contract management of all infrastructure subprojects in the city. 141. The PMU will provide technical supervision and ensure compliance to social safeguards in accordance with ADB policies and procedures. The CIU will appoint Social Safeguards Officer with an academic background in social sciences and relevant skills and experience in resettlement issues. The Social Safeguards Officer will be responsible for implementation of LARP for different subprojects in the city. The responsibilities of the Social Safeguards Officer will be to:

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 meet the DPs formally and informally as often as may be necessary to hear the views of local people and communities regarding implementation of the project.  monitor the project progress and implementation of the work, check the validity of complaints, and gain an informed view of particular issues.  check and validate elements of the LARP where required by the PMU.  ensure provision of cheques to the DPs.  meet as a committee at least monthly to discuss project progress, complaints and issues raised by the DPs, etc., and report on these matters to the PMU, and  assist the DPs in resolving complaints by discussion with the CIU and the Contractor on site where possible, and if this cannot be achieved, assist the DPs in presenting the case to the Grievance Redress Committee (GRC) if requested.

K. Implementation Schedule

142. An indicative schedule has been prepared for LARP update and implementation activities in relation to technical work. Table 8 shows all the activities and milestones; (i) updating of LARP after preparation of final design of bus terminal upgrade, (ii) RP disclosure, (iii) verification of DPs, (iv) award of compensation, (v) disbursement of cheques, (vii) relocation of DP shops, (vii) grievance redressal, and (viii) award of civil works contract. Table 9: LARP Tentative Implementation Schedule

No RP Activities Responsibility From June 2018

Q1 Q2 Q3 Q4 Q5

1 Update LARP after final Design PMU

2 RP Disclosure PMU

3 Verification of DPs Social Safeguards Officer

4 Award Compensation PMU

5 Disbursement of cheques CIU

6 Construction and Relocation of CIU and Social Displaced Shops Safeguards Officer

7 Grievance Redress GRC

8 Commencement of civil works Contractor

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L. Monitoring and Reporting

143. Implementation of RP activities will be closely monitored to assess LAR progress and identifying potential difficulties and problems. Regular monitoring will be conducted internally by CIU through the PMU and with approved by ADB. The PMU will engage an external monitoring agency (EMA) chosen among local consultants or NGOs to verify the progress and achievements according to the stated goal and purpose of the project terms living conditions and economic status following the land acquisition and resettlement. 1 Internal Monitoring

144. Internal monitoring of LAR activities will be a routine activity of PMU as part of its internal monitoring system and will be carried out during the entire project period. The Social Safeguards Officer at the field level will collect the required information according to indicators identified in the monitoring mechanism developed by the PMU. These indicators will form basis of the monitoring and evaluation of LARP implementation as well as the preparation of monthly monitoring report on progress of LARP implementation. Progress reports will be submitted to ADB on quarterly basis regarding actual achievements against target fixed and identifying reasons for shortfalls. The internal monitoring reports will cover (i) consultation with DPs and other stakeholders (ii) the number of DPs by category of impact (iii) status of compensation payment and relocation and income restoration (iv) The amount of funds allocated for compensation and the amount of funds disbursed (v) the eventual outcome of complaints and grievances and any outstanding issues requiring management or assistance. 2 External Monitoring

145. The PMU will engage the services of External Monitoring Agency preferably a local NGO or research institution to measure the effectiveness of the LARP and its implementation in meeting the needs of the affected population. The EMA will have expertise in social sciences and experience in resettlement monitoring. External monitoring will be carried out bi-annually during the implementation of LARPs and its results will be reported to ADB. 146. The EMA will monitor and review the status of the LARP implementation in light of the allocated budget and duration that had been laid down in the LARP. The key tasks will include review of internal monitoring reports prepared by PMU, review of baseline census information, identification and selection of impact indicators and assess the resettlement efficiency, impact and sustainability, drawing lessons for policy formulation and planning. The EMA will also examine the general efficiency of LARP implementation and determine the overall adequacy of entitlements and compensation to meet the objectives. 147. The EMA will carry out evaluation to assess the effectiveness of LARP implementation based on the socio-economic surveys and progress reports about a year after the completion of subproject. The post subproject evaluation findings will ascertain whether the project was able to improve the quality of life of the DPs, identify gaps and will recommend strategies for future course correction.

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APPENDIX -I Participants of the Consultation Meeting at Sialkot General Bus Stand No. Name Designation Contact No. 1 Muhammad Yousuf Shopkeeper 054261786 2 Muhammad Yaseen Shopkeeper 03110307676 3 Zaman Shah Shopkeeper 03026111599 4 Rana Khalid Mehmood Shopkeeper 03007117946 5 Altaf Hussain Shopkeeper 03006129305 6 Muhammad Siddique Shopkeeper 03338646792 7 Muhammad Lateef Driver 03354570990 8 Muhammad Khalid Shopkeeper 03457191885 9 Hammad Ahmed Shopkeeper 03026323980 10 Muahmmad Naseer Shopkeeper 03404815241 11 Syed Yousuf Geelani Shopkeeper 03334528303 12 Sarfraz Hussain Shopkeeper 03016103590 13 Javed Akhtar Shopkeeper 03455362171 14 Mubashir Hussain Shopkeeper 03075119368 15 Qalb e Abbas Shopkeeper 03216183806 16 Khalid Mahmood Shopkeeper 03338639842 17 Muhammad Akram Shopkeeper 03007158014 18 Ashiq Hussain Shopkeeper 03025753184 19 Shabeer Ahmed Shopkeeper 03006123108 20 Faizan Shopkeeper 03024200006 21 Imran Gujjar Shopkeeper 03476764409 22 Muhammad Basheer Transport Manager

Representative of Sialkot Cantonment Board 1 Kamran Khan Secretary SCB Consultant Team 1 Saifur Rahman Sherani LARP Consultant PPTA 2 Azher Uddin Khan Deputy Team Leader of PPTA 3 Ayaz Asif Due Diligence Consultant ADB 4 Hafeez Buzdar LARP Coordinator 5 Muhammad Asher LARP Assistant

Signed list of participants given below

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APPENDIX – II

List of Potential DPs in Sialkot Bus Terminal No. Name of Potential Displaced Shopkeepers Business 1 Dilbar Hussain Mobile Shop 2 Malik Sadiq Hussain General Store 3 Zaman Shah Electronics 4 Manazir Hussain Mobile Shop 5 Shah Madaar General Store 6 Iftikhar Hussain Book Store 7 Muhammad Idrees General Store 8 Muhammad Fayyaz Sweets Shop 9 Muhammad Khalid Tuck Shop 10 Abdul Wakeel Mobile Shop 11 Abdul Wahab Electronics 12 Haji Muhammad Saleem Hotel 13 Sheikh Muhammad Azhar Spare Parts 14 Muhammad Siddique Workshop 15 Rehmat Ali Barber 16 Muhammad Shakeel General Store 17 Shabeer Ahmed Barber 18 Muhammad Arif Barber 19 Muhammad Tanveer Barber 20 Qaiser Abbas Hotel 21 Shozab Abbas Workshop 22 Muhammad Anwar Workshop 23 Ameen Gujjar Electronics 24 Muhamad Boota Workshop 25 Muhammad Naseer Workshop 26 Syed Yousuf Gilani Spare Parts 27 Hammad Ahmed Mobile Shop 28 Moazzam Workshop 29 Muhammad Yaqoob Workshop 30 Tariq Butt Spare Parts 31 Sarfraz Hussain Spare Parts 32 Muhammad Ashraf Tyre Shop 33 Khalid Mehmood Workshop 34 Luqman Javed Butt Mobile Shop 35 Karamat Ali Restaurant 36 Muhammad Nadeem Workshop 37 Ghulam Haider Hotel 38 Ghulam Shabeer Spare Parts 39 Nawazish Ali Workshop 40 Muhammad Zaheer Workshop 41 Malik Babar Workshop 42 Sarfraz Tyre Shop 43 Muhammad Islam Butt Workshop 44 Ghulam Murtaza Transporter 45 Muhammad Ijaz Butt Spare Parts 46 Javed Workshop 47 Muzzamil Ahmed Workshop 48 Zulfiqar Ali Spare Parts 49 Asif Mehmood Workshop 50 Muhammad Bakhsh Restaurant 38

51 Abdul Sattar Restaurant 52 Raja Razzaq Hussain Restaurant 53 Shafeeq Hussain Restaurant 54 Liaquat Restaurant 55 Sajjad Husain Restaurant 56 Muhammad Azam Restaurant 57 Sagheer Ahmed Workshop 58 Muhammad Ghaffar Tyre Shop 59 Muhammad Suleman Tea Stall 60 Asif Khan Tuck Shop 61 Ashiq Huassain Restaurant 62 Shahbaz Ahmed Abbasi Electronics 63 Adnan Qasim Tuck Shop 64 Abdul Rehman Tuck Shop 65 Muhammad Arshad Tea Stall 66 Muhammad Jahangeer Tuck Shop 67 Zahid Hussain Pan Shop 68 Raja Arshad Pan Shop 69 Iabal Hussain Tea Stall 70 Abbas Ali Fruit Shop 71 Asif Ali Tuck Shop 72 Zulfiqar Ali Tea Stall 73 Muhammad Imran Juice Shop 74 Shamas Butt Restaurant 75 Abid Hussain Fruit Shop 76 Malik Allah Raheem Workshop 77 Muhammad Ilyas Battery Shop 78 Muhammad Akram Restaurant 79 Basheer Ahmed Workshop 80 Arsalan Basheer Tuck Shop 81 Mian Khalid Restaurant 82 Muhammad Ikraam Restaurant 83 Muhammad Mushtaq Restaurant 84 Muhammad Yaseen Tyre Shop 85 Faiz Ahmed Butt Spare Parts 86 Arsalan Arshad Workshop 87 Muhammad Shahbaz Workshop 88 Ahmed Hussain Snacks Shop 89 Muhammad Muneer Ahmed Fruit Shop 90 Muhammad Ajmal Fruit Shop 91 Hassan Raza Fruit Shop 92 Jahangeer Safdar Restaurant 93 Ashiq Abbas Tuck Shop 94 Muhammad Nawaz Fruit Shop 95 Muhammad Rasheed Snacks Shop

No. Potential DPs of Kiosks Type of business 1 Muhammad Afzal Snacks 2 Muhammad Naseem Tea Stall 3 Zulfiqar Ali Snacks 4 Mubashir Hussain Tea Stall 5 Saeed Ahmed Juice Shop 6 Amanat Ali Tuck Shop 7 Javed Akhtar Tea Stall 8 Zulfiqar Tuck Shop 9 Muhammad Yousuf Tuck Shop

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10 Ghulam Hassan Tea Stall 11 Naveed Ali Pan Shop 12 Basharat Tea Stall 13 Muhammad Afzal Snacks 14 Muhammad Dost Restaurant