Resettlement Planning Document Fiji Electric Authority: the Western And

Resettlement Planning Document

Short Resettlement and Land Acquisition Plan Document Stage: Final Project Number: 39521 November 2006

Fiji Electric Authority: The Western and Central Networks Reinforcement and Extension Project

Prepared by Richard John Watling for Fiji Electric Authority, Suva, Republic of the Fiji Islands.

The 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.

FIJI ELECTRICITY AUTHORITY

WESTERN AND CENTRAL NETWORKS REINFORCEMENT AND EXPANSION PROJECT

SHORT LAND ACQUISITION AND RESETTLEMENT PLAN

November 2006

Short Land Acquisition and Resettlement Plan

A. Introduction

1. This short Land Acquisition and Resettlement Plan (LARP) has been prepared in accordance with the Government of the Republic of the Fiji Islands' laws and regulations and the Asian Development Bank (ADB) policy on Involuntary Resettlement for the Western and Central Networks Reinforcement and Expansion Project. The LARP was prepared following surveys and investigation following preliminary technical designs for Project components – transmission lines and substations.

B. Description of the Project and Scope

2. The Project is part of Fiji Electricity Authority's (FEA) renewable energy investment plan. ADB will provide a Project Loan of US$20 million loan to finance the following project components:

(i) Component A: Western network reinforcement and extension project incorporating: (a) Construction of a 132-kilovolt (kV) single circuit transmission line from Vuda to Nawai (Length 34.9 kilometers [km]). (b) Construction of a 132 kV single circuit transmission line from Nawai to Maro (Length 19.0 km). (c) Construction of a 33 kV single circuit line from Nawai to Momi Bay (Length 5.6 km) (d) Construction of a 33 kV single circuit transmission line from Nawai to Waqadra (Length 24.5 km). (e) Construction of a 33 kV transmission line between Natadola and Maro (Length 7.9 km). (f) Upgrading of the existing Maro substation to accept the 132 kV transmission line from Nawai. (g) Construction of a 132/33/11 kV substation at Nawai. (h) Construction of a 33 kV substation at Momi Bay (on resort land). (i) Construction a 33 kV substation at Natadola (on resort land).

(ii) Component B: Central network reinforcement and extension incorporating: (a) Expansion of the existing Suva substation to improve 11 kV and 33 kV transmission capacity and associated 33 kV underground cables from Kinoya to Suva. (b) Expansion of the existing Kinoya substation to improve 11 kV and 33 kV transmission capacity.

3. Components A and B will be constructed under plant design, supply and install contracts.

C. Scope of Resettlement Impacts

4. Transmission Lines. All transmission lines (132 kV and 33 kV) will be constructed within existing easements and road reserves. The FEA standard reserve width for both 132 kV and 33 kV transmission lines is 50 meters (m) and the alignment of the transmission lines has been selected to follow existing easements and road reserves which have a minimum width of

50 m. Preliminary surveys indicate there is no cultivation within the existing easements and road reserves. A single pole arrangement for both 132 kV and 33 kV transmission line towers has been adopted to minimize the tower footprint and visual impact. Land acquisition or resettlement for the transmission lines are not envisaged.

5. Substations. Permanent land acquisition of 0.2 hectares of land for the Nawai substation is required. The site for the substation has been identified. The site is vacant - there are no dwellings and cultivation of crops on the site. The site is under customary title (native land) and is owned by 1 land owning unit (Mataqali1). Consultations and negotiations between FEA, the Native Lands Trust Board and the Mataqali for the acquisition of the site commenced in October 2006. FEA expects to finalize negotiations and obtain a lease for the site by March 2007. Land for the Vuda, Maro, Kinoya, and Suva substations is owned by FEA and no land acquisition is required for these substations. Two new substations located at Momi Bay and Natadola will be constructed on resort development land. The resort developers will provide the land to FEA and will guarantee access to FEA for maintenance and operational work.

6. Temporary Land Acquisition. Temporary land acquisition is not required as construction plant and materials will be stored in existing FEA depots or in temporary compounds established on the substation sites.

D. Resettlement Plan Objectives, Policy Framework and Entitlement Matrix

1. Objectives

7. The objective of this LARP is to mitigate adverse impacts to affected persons (APs) and to ensure that screening, planning, and management procedures for involuntary resettlement for the Project comply with ADB’s policies, procedures and best practice guidelines on involuntary resettlement and other ADB social safeguards.

8. The Project has been designed to (i) minimize land acquisition, (ii) avoid impacts of “significant” nature, and (iii) avoid all existing primary structures.

2. Policy Framework

9. The LARP was developed based on (i) the Native Lands Act (Chapter 35 of Laws of Fiji, Rev. 1985); (ii) State Acquisition of Lands Act (SALA) of Fiji (Chapter 135 of Laws of Fiji); (iii) the ADB Operations Manuals: Bank Policies: Involuntary Resettlement (F2/BP) and Operational Procedures): Involuntary Resettlement (F2/OP); and (iv) the ADB Handbook on Resettlement: A Guide to Good Practice.

10. The process for land acquisition process is initiated by FEA. FEA identifies land to be acquired, and notifies the Department of Lands and Surveys (DLS) of the Project land acquisition requirements. The DLS is responsible for identifying the customary owners, conducting valuations, negotiating prices, making payments, and obtaining possession of the land through the Native Lands Trust Board (NLTB) in the case of native land.

11. As the process of land acquisition is contingent upon clear boundary demarcations and consensus among sellers, FEA continuously consults with land-owners and any tenants until negotiations with all stakeholders have been successfully concluded. FEA, with the assistance

1 Fijian extended family units with customary land title.

of NLTB, acquires native land. State land is acquired with the assistance of DLS. FEA negotiates directly with owners/leaseholders for the acquisition of freehold and leased land. FEA does not take possession of land until a purchase or lease agreement is finalized to the satisfaction of all parties.

12. The standard DLS procedure is to prepare initial valuations for land using local market prices as obtained from the Land Registrar’s office which may be below market values. FEA will acquire land at full market value. DLS also adopts Land Registrar’s valuation rates for structures. The valuation rates are based on local rates and account for devaluation. There are no processes for negotiating the cost of structures and compensation rates for loss of structures may be less than their replacement cost. FEA provides compensation for loss of structures at market value.

13. ADB's Involuntary Resettlement policy requires that all land and structures should be fully acquired before the commencement of civil works. Currently, DLS only pays 75% of the finally agreed price for land (and 100% compensation for structures) prior to the final boundary survey. Consequently, the final payment can only be made after the final boundary survey which is usually undertaken after construction is completed. Therefore the official land transfers are usually not finalized until after project completion.

3. Entitlements

14. The ADB policy for valuing entitlements requires that APs "will be at least as well off as they would have been in the absence of the Project". Valuation of the property and assets of APs should be at replacement value. Entitlement provision for compensation for land acquired for the Project is presented in Table SA5.1. Surveys and investigations show that demolition or relocation of dwellings or structures will not be required and crop damage and loss is not expected.

Table SA5.1: Entitlements Framework

Types of Losses Entitlements Loss of Land Permanent land loss Market value of the land or replacement of land of equal or better size and quality. Annual land rents for leased native land. For tenants and non-titled occupants, either an agreed cash settlement between AP and FEA or assistance with location to suitable alternative land if required.

E. Disclosure, Consultation, and Grievance Mechanism

15. Details of the Project were disclosed to the public through four public consultation meetings on 18 October in Ba Province and on 23 October 2006 in Nadroga Province – the two provinces in which the Project is located. Two representatives from FEA and an ADB consultant presented the Project to the stakeholders. All discussions were held in the Fijian language and were arranged according to customary village hierarchical procedures and were attended by the Turaga ni Mataqali (Clan Leaders), District Leaders, and various landowners. In all of the meetings there was strong support for the project from all of the stakeholders. The stakeholders

were pleased to have been given the opportunity for consultation and wished to see the project proceed.

16. Consultations between the customary land owners and FEA for the acquisition of the Nawai substation site commenced in mid-October 2006. FEA initiated the consultations through its Land and Real Estate Unit. The negotiation of the lease is currently being facilitated by the NLTB as required under the Native Lands Act. The land owners have been provided with details of the Project and advised by FEA and NLTB of FEA's purposed use of the site. Provisions for compensation for loss of land and crop and tree losses have been explained to the land owners. All consultations and negotiations with the land owners have been undertaken in the Fijian language.

17. A grievance mechanism will be established under the project which will allow AP to appeal any decisions or practices arising from compensation for land and other assets or to settle any general project-related disputes. AP will be made fully aware of their rights and the procedures for making a grievance as part of the disclosure process. A Grievance Redress Committee (GRC) will be established, chaired by the FEA’s Public Relations Officer, and will include a valuation officer from the DLS, community leaders or representatives of AP. The GRC will have gender representation and will include representatives of NLTB and appropriate mataqali where grievances involve native land.

F. Gender, Ethnic and Poverty Issues

18. The project will not have any adverse impact on women.

G. Implementation Arrangements and Schedule

19. The FEA Land and Real Estate Unit is responsible for all aspects of land acquisition and resettlement. Land acquisition and resettlement activities include: (i) identification of affected areas, (ii) the community liaison, (iii) budgetary provision, and (iv) monitoring and evaluation.

20. A schedule for land acquisition and resettlement has not been prepared as the land acquisition requirements for the Project is limited to the Nawai substation site which is expected to be completed by March 2007.

H. Monitoring and Evaluation

21. Regular monitoring of the resettlement plan implementation will be conducted internally by FEA and recorded in the quarterly project progress reports. In carrying out all activities related to monitoring, evaluation and supervision, consideration will be given to gender issues in all of the above, in accordance with the ADB Policy on Gender and Development and the Gender Checklist; Resettlement (2003).

I. Resettlement Costs

22. The basis for assessing land acquisition and resettlement costs are (i) the Native Land Act for acquisition of native land; and (ii) SALA for the acquisition of freehold and leasehold land. ADB’s policy on Involuntary Resettlement will be applied to ensure full entitlements of APs. FEA and NLTB will negotiate with the owners to determine land and other forms of compensation.

23. The estimated cost to acquire land for the Nawai Substation is US$50,000 which is included in the Project cost estimates. Any unforeseen land acquisition and resettlement costs can be funded from the physical contingency item under the Project budget.