Oron – Creek Town Gas Pipeline (Akwa Ibom &Cross Rivers States, Nigeria)
Livelihood Restoration Plan (LRP)
25 February 2015
FINAL REPORT
Accugas Limited – A subsidiary of Seven Energy International Limited (SEIL).
Oron – Creek Town Gas Pipeline
Livelihood Restoration Plan (LRP):
Akwa Ibom & Cross Rivers States, Nigeria
For and on behalf of Accugas Limited
Approved by: Glenn Bestall
Signed:
Position: VP QHSSEC
Date: 25 February 2015
Prepared: Shedrack Siakpebru; Evans John
Reviewed: D. Hall, J Ekpelegho, H Ikemefuna & CSR Team
TABLE OF CONTENTS
EXECUTIVE SUMMARY I
EXECUTIVE SUMMARY I
1 INTRODUCTION 4
1.1 BACKGROUND 4 1.2 POLICIES AND OBJECTIVES OF LRP PREPARATION 4 1.3 PROJECT DESCRIPTION 5 1.4 SUMMARY OF PROJECT LAND TAKE 7 1.5 MINIMIZING RESETTLEMENT 7 1.5.1 Project Alternatives 7 1.6 LIMITATIONS 9
2 SOCIO-ECONOMIC BASELINE 10
2.1 ADMINISTRATIVE STRUCTURE 10 2.1.1 Government Institutions 10 2.2 COMMUNITY LEADERSHIP STRUCTURE 12 2.2.1 Village Networks and Linkages 13 2.3 PROFILE OF AFFECTED COMMUNITIES 13 2.3.2 Ethnicity, Religion and Language 14 2.3.3 Land 14 2.3.4 Communal Resources 15 2.3.5 Housing 15 2.3.6 Infrastructure 15 2.3.7 Household Income and Expense 17 2.3.8 Food and Nutrition 20
3 PROJECT IMPACTS 21
3.1 PROJECT AFFECTED LAND 21 3.1.1 Affected Cultivated Land 22 3.2 AFFECTED SHRINES 23 3.3 CATEGORIES OF PROJECT AFFECTED PEOPLE 23 3.3.1 Loss of Swamp/water for fishing 24 3.3.2 Loss of Community Resources (Tree and Nipa palm) 24 3.3.3 Owner of Structures / Assets 24 3.3.4 Individuals Dependent on Communally Held swamps Resources / Assets 24 3.3.5 Vulnerable Groups 24
4 LEGAL AND ADMINISTRATIVE FRAMEWORK 26
4.1 INTRODUCTION 26 4.2 LAND USE ACT, 1978 26 4.2.1 Background 26 4.2.2 Land Ownership and Use 26 4.2.3 Compensation Provisions 27 4.3 OIL PIPELINE ACT (1990) 27 4.3.1 Permit to Survey 27 4.3.2 Oil Pipeline License 27 4.3.3 Compensation 28 4.4 IFC PERFORMANCE STANDARD 5 28 4.4.1 Key Elements of IFC PS5 28 4.4.2 Gaps between Nigerian Practice and International Standards 29
4.5 PROJECT LAND ACQUISITION STRATEGIES 35
5 INSTITUTIONAL ARRANGEMENTS 36
5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD RESTORATION PROCESS 36 5.2 ORGANIZATION STRUCTURE 36 5.3 LRP HANDOVER 39 5.4 GRIEVANCE MECHANISM 39 5.4.1 Potential Grievances and Disputes 39 5.4.2 Procedure for Grievance Redress 39
6 PARTICIPATION AND CONSULTAITON 41
6.1 INTRODUCTION 41 6.1.1 Objectives 41 6.1.2 Stakeholder Identification 41 6.1.3 Methodology 41 6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE 42 6.2.1 Concerns of PAPs 45 6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING 45 6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN 46
7 COMPENSATION AND INCOME RESTORATION 48
7.1 INTRODUCTION 48 7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA 48 7.2.1 Nigerian Legal Requirements 48 7.2.2 International Standards 48 7.2.3 Summary 48 7.3 COMPENSATION REQUIREMENTS 49 7.3.1 Local Requirements 49 7.3.2 International Requirements 49 7.3.3 Project Approach to Compensation 49 7.3.4 Valuation Method 50 7.4 LIVELIHOOD RESTORATION STRATEGIES 51
TABLE 7.3 ENTITLEMENT MATRIX 53
8 MONITORING AND EVALUATION 55
8.1 INTRODUCTION 55 8.1.1 Objectives 55 8.2 MONITORING AND EVALUATION PLAN 55 8.2.1 Progress Monitoring 55 8.2.2 Outcome Evaluation 56 8.2.3 External Monitoring and Completion Audit 56 8.3 MONITORING AND EVALUATION ROLES AND RESPONSIBILITIES 57 8.4 SCHEDULE AND REPORTING 57 8.4.1 Internal Monitoring 57 8.4.2 External Monitoring 57 8.4.3 Completion Audit 57 8.5 OVERALL MONITORING SCHEDULE 58
TABLE 8.1 TENTATIVE MONITORING SCHEDULE 58
9 SCHEDULE OF IMPLEMENTATION 59
9.1 SCHEDULE OF IMPLEMENTATION 59
TABLE 9.1 LAND ACQUISITION AND LIVELIHOOD RESTORATION SCHEDULE 59
10 BUDGET 60
ANNEX
ANNEX A TEMPLATE OF ENTITLEMENT ANNEX B COMPENSATION RATES ANNEX C COMMUNITY CONSULTATION RECORDS
LIST OF TABLES
Table 1.1 Project Land/swamp Use 7 Table 1.2 Land Affected by the Project 7 Table 2.1 Pipeline Affected Villages 12 Table 2.2 Population and Gender 313 Table 3.1 Project Swamp/Water Use 21 Table 3.2 Project Affected Trees 22 Table 4.1 Pipeline Land Right 428 Table 4.2. Gap Analysis ( IFC PS5 and Local Requirements) 31 Table 5.1 Roles and Responsibilities of Land Acquistion Committee 37 Table 6.1 Participation and Consultation Methodology 51 Table 6.2 Consultation Activity Conducted to Date 42 Table 6.3 Future Participation and Consultation Plan 46 Table 7.1 Comparison of Eligibilty and Entitlement Criteria 48 Table 7.2 Compensation Provision 51 Table 7.3 Entitlement Matrix 53 Table 8.1 Tentative Monitoring Schedule 58 Table 9.1 Schedule of Implementation 59
LIST OF FIGURES
Figure 1.1 Alignment of the Oron Pipeline Error! Bookmark not defined. Figure 1.2 Evaluation of Alternative pipeline Routes 8 Figure 2.1 Project Layout Map and Affected Communities 11 Figure 2.2 Monthly Income Sources Error! Bookmark not defined. Figure 2.3 Monthly Income Distribution Error! Bookmark not defined. Figure 2.4 Monthly House expenditure 19 Figure 2.5 Money Useage of Project Affected Household 18 Figure 3.1 Land Use Diagram 21 Figure 3.2 Project Affected Shrines 23 Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process 36 Figure 5.2 Organisation Structure of Land Acquisition Committee 37 Figure 5.3 Accugas Grievance Redress Procedure 40 Figure 6.1 Community Consultation and Participation, April-May 2012 43
DEFINITIONS
Term Definition Affected Area The land/water area affected by permanent acquisition of land/water in connection with the Project. Asset Inventory A complete count, measurement and description of all affected assets including structures, crops, trees and other land attachments to be acquired. Census A field survey carried out to identify and determine the number of Project Affected Persons (PAPs) in a unit of Household. Cut-off date A day on and beyond which any person who improves land or constructs assets on land, required for project use, will not be eligible for compensation. According to Nigeria practice, this date is likely to be set following the completion of the census and land survey and asset inventory. Communal land Land that is in public use that is recognized under traditional or customary right to occupy. Such land is communally owned and under the control of village council of chiefs or village head, acting as a representative of the community. Compensation Payment in cash or payment in kind of the replacement value of the acquired property and/ or impacted assets. Displaced Persons who have formal legal rights and/or customary rights of Persons occupation to the land they occupy within the Affected Area. Economic Loss of assets or access to assets that leads to loss of income sources or other Displacement means of livelihood. Entitlements Entitlements with respect to a particular eligibility category are the compensation and other forms of assistance provided to impacted persons in the respective eligibility category. Grievance The processes established to enable property owners and other impacted Procedure persons to redress issues related to acquisition, compensation, or other aspects of resettlement. Involuntary Involuntary taking of land or impact on land or assets, resulting in direct or Resettlement indirect economic and social impacts, whether or not the PAP must physically relocate , caused by: Loss of benefits from use of such land; Relocation or loss of shelter; Loss of, impact on, assets or access to assets; and Loss of income sources or means of livelihood, whether or not the project affected person has moved to another location. Land Acquisition Taking of or alienation of land, buildings or other assets thereon for the purpose of the project. Livelihood Livelihood Restoration Plan prepared for the project. It will include details Restoration Plan of project impacts, categories of PAPs, compensation entitlement and eligibility, and how livelihood restoration will be implemented. Market Value Most probable selling price or the value most often sought by buyers and sellers. It assumes buyers and sellers have reasonable knowledge, act competitively and rationally are motivated by self interests to maximize satisfaction and both act independently and without collusion, fraud or misrepresentation. Project Affected A person that loses assets and/or usage rights and/or income generation Person (s) (PAPs) capacities (e.g. land, crops) because these assets/rights/capacities are located in the land to be acquired or used, for needs of the project. Livelihood Provision of development assistance in addition to compensation such as Restoration agricultural intensification, training, or job opportunities, needed to enable Assistance PAPs to maintain their living standards, income earning capacity and production levels. Replacement The amount that will be paid to replace the value for the land and all assets value on it, without any deductions for depreciation.
Term Definition Vulnerable People who, by virtue of gender, ethnicity, age, physical or mental Groups disability, economic disadvantage or social status, may be more adversely affected by resettlement than others; and who may have limited ability to claim or take advantage of resettlement assistance and related development benefits. These include: Women headed households without one or more family members of working age in the household. Situated within a patriarchal society, women tend to be prevented from participating in local decision- making. They also tend to lack access to independent means of income generation. Households headed by disabled and/or elderly people (>60 years) without one or more family members of working age in the household. Those with physical or mental disability and /or old age are typically unable to access an independent means of income generation.
ABBREVIATIONS & ACRONYMS
CSR Rep/Officer. Corporate Social Responsibility Rep./Officer GSA Gas Sales Agreement IFC International Financial Corporation Ha Hectare (1 ha = 10,000 m2) HH Household LA Land Acquisition on 25m ROW LAC Land Acquisition Committee LGA Local Government Area LR Livelihood Restoration LRP Livelihood Restoration Plan M&E Monitoring and Evaluation N Naira (Nigerian currency) NDPHC Niger Delta Power Holding Company NGO Non-governmental Organisation NPC National Population Commission NIPP Nigerian Integrated Power Plant OPTS Oil Producers Trade Section PS Performance Standard RAP Resettlement Action Plan ROW Right of Way PAP Project Affected Person
EXECUTIVE SUMMARY
This Livelihood Restoration Plan (LRP) has been prepared to enable Accugas acquire the Gas Pipeline Right of Way from Usung near Oron to Creek Town. The proposed pipeline project is located between Usung near Oron in Akwa Ibom State, and Creek Town in Cross River State Nigeria, the Project will affect a 25m (wide) Right of Way (ROW) along a 23km (length) pipeline corridor, traversing 24 villages in four Local Government Areas (LGA), namely Udung Uko, Oron, Okobo LGAs in Akwa Ibom State and Odukpani in Cross River State.
Project land take comprises of a permanent acquisition of a 25m ROW to accommodate the pipeline and for use during construction and maintenance period. The proposed ROW transverse permanent swamp forest and water bodies with patches of highlands which are not arable. Subsistent fishing, picking and harvesting of non-fishery resources such as periwinks and snails are the key land use of the area; consequently the Project will result in economic displacement of land owners/users. The project will not require physical displacement of dwelling houses. A census, land survey and asset inventory of the project footprint was conducted in November – December 2014. In total, the project will affect 24 villages which are all communal swamp and water.
The Project will be implemented in accordance with applicable national and Akwa Ibom and Cross Rivers State laws and regulations, and with the IFC Performance Standard (PS) 5: Land Acquisition and Involuntary Resettlement (2012). The following underlying principles will guide planning and implementation for the Project land acquisition and associated activities:
1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline Act (1990) and all other applicable Nigerian laws and regulations. 2. The Project will compensate affected persons for loss of assets at full replacement cost. 3. The Project will treat occupancy rights as ownership rights for the purposes of compensation and will compensate accordingly. The Project will compensate the replacement cost for permanently acquired land. 4. Encroachers will be eligible for compensation of affected assets. 5. The Project will pay compensation in full prior to the occupation of land or removal of assets. 6. The Project will implement livelihood restoration measures in order to assist PAPs to restore incomes to pre-displacement levels. 7. Vulnerable groups will be identified, registered and their livelihood monitored. Specific measures for compensation and livelihood assistance will be developed and funded by the Project. 8. A grievance procedure will be accessible to all those affected by the project. 9. The Project will establish systems for monitoring and evaluation (including a completion audit) as proposed in this LRP.
The Project compensation entitlements are summarised below: Compensation for Permanent Land Acquisition
For permanent land acquisition, compensation for the land/swamp will be paid at full replacement cost. The swamp and the water on the ROW is a non-cultivated land, compensation will be paid at the market value of the land only.
Compensation Rate for Standing Crops, Trees and Assets
The Project will adopt the highest compensation rates among Akwa Ibom State government rates, Oil Producers Trade Section (OPTS) rates and market prices for each affected asset. The compensation rates will be applied consistently across the four LGAs.
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Compensation for Shrines
Cash compensation will be paid to communities who are to conduct required ceremonies to relocate the shrines, in addition to government compensation rates, a 25% uplift has been applied to compensate for ceremonies prior to /during relocation of the shrines.
Compensation for Swamp
Cash compensation will be provided for: 1) Unmovable fishing traps and nets at market value; and 2) Transitional allowance for loss of income from swamps.
Vulnerable Groups
Particular attention is being given to the needs of vulnerable groups in the context of compensation. Based on consultation with those households identified as vulnerable, an appropriate additional transitional allowance will be determined, and distributed to these households, in monthly instalments, over a six month period. Vulnerable groups will be given preferential provision of: (i) skills training; and (ii) Project employment.
In addition, livelihood restoration measures will be developed based consultation with communities’ representatives, including: 1) land-based schemes, including agricultural training, agricultural intensification, better storage techniques and adding value to agricultural produce; 2) Wage-based schemes to provide permanent or temporary employment opportunities to affected communities; and 3) Village infrastructure schemes to assist community access to better road.
A Land Acquisition Committee will be formed to manage the compensation and livelihood restoration (LR) processes. Responsibilities of key members are listed below:
Positions Roles and Responsibilities
Livelihood Restoration Management oversight and primary responsibility for the Manager entire process and project
Legal Manager Legal advice, produce all agreements and routinely vet process Livelihood Restoration Coordinate and oversee the project in the field, ensuring Officer practical application of the principles of sustainability. Finance representative Oversee financial details CSR Manager Link between land acquisition and community development programme, lead grievance process; NGO/Consulting Firm Facilitators, trainers, and coordinator of external monitoring Government Observers, countersign payment and participate grievance representatives redressing process as needed.
A project grievance process has been developed and will be communicated to affected communities throughout the land acquisition planning process, including final LRP disclosure town hall meetings.
To ensure that the land acquisition (including associated compensation and livelihood restoration) is carried out as planned, internal and external monitoring will be undertaken throughout the process. It will consist of two components, namely progress monitoring and outcome evaluation. Monitoring will be initiated at an early stage in the land acquisition process and will continue for approximately two years. In addition, a completion audit will be
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conducted by a third party monitor to be appointed by Accugas, upon the completion of pipeline installation and all associated measures in this LRP.
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1 INTRODUCTION
1.1 BACKGROUND
This document is a Livelihood Restoration Plan (LRP) prepared by Accugas Limited for Usung ( Oron) to Creek Town Gas Pipeline Project. A Livelihood Restoration Plan (LRP) was prepared by Environmental Resources Management (ERM) on behalf of Seven Energy International Limited (SEIL) for the 38km gas pipeline between Uquo and Usung near Oron in 2012 and the implementation of the plan which includes payment of compensation and others was completed in 2013. Following which SEIL through its subsidiary Accugas Limited commenced the construction of the pipeline in 2013 and was completed and pre-commissioned ready to receive gas in November 2014.
The 38Km (Oron) gas pipeline was proposed to tie-in to NDPHC’s (Niger Delta Power Holding Company’s) 51Km gas pipeline originating from the Calabar Power Plant and terminating at Oron. Whereas Accugas has achieved 100% completion of the construction of its 24” x 38Km pipeline awaiting commissioning, NDPHC has only completed about 35% of its pipeline (i.e. 21Km out the 51Km pipeline) and have informed Accugas to take over the construction of the remaining 30Km from Creek Town to Oron.
The Right of Way (ROW) acquired by NDPHC between Calabar and Oron has been encroached upon and will thus require physical resettlement of people and assets. This thus necessitates the re-routing of the ROW and acquisition of a 25m X 23Km ROW for the pipeline extension from Oron to Creek Town. The preparation of this LRP is to enable Accugas to acquire the ROW in a sustainable manner.
1.2 POLICIES AND OBJECTIVES OF LRP PREPARATION
Land Acquisition/involuntary resettlement when poorly planned and managed, has the potential to result in long-term hardships for, and the impoverishment of, affected people and communities, as well as environmental damage and adverse socioeconomic impacts in the areas to which affected people have been displaced or their livelihood adversely impacted. Such impacts are not only highly negative but can also translate into severe Project risks, including:
schedule delays; cost escalations; reputational damage; loss of access to international financing; and loss of social licence to operate.
This LRP constitutes part of the Project’s attempt to avoid such negative impacts and risks, and rather transform the resettlement process into an opportunity for social development. More specifically, the key aim of the LRP is to provide a comprehensive overview of how the Project’s resettlement process will be managed in order to facilitate compliance with:
local, Nigerian legislative requirements; and international best practice; namely the 2011 World Bank Operational Policy (OP) 4.12 on Involuntary Resettlement and the 2012 International Finance Corporation (IFC) Environmental and Social Performance Standards (PSs).
The objectives of the LRP directly align with the requirements of the 2012 IFC PS 5: Land Acquisition and Involuntary Resettlement and include the following:
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Avoid or at least minimize displacement, wherever feasible, by exploring alternative project designs. Avoid forced eviction. Mitigate the adverse social and economic impacts of land acquisition or restrictions on land use by: (i) providing compensation for loss of assets at full replacement cost and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation and the informed participation of those affected. Improve, or restore, the livelihoods and standards of living of displaced persons. Improve living conditions among economically displaced persons through the provision of adequate and just compensation and provision of livelihood restoration measures.
The Project is committed to providing economic benefits to those affected by Project activities, and as such commits to the following enhancement measures: Use local procurement and employment, where possible, to enhance local benefits; and Support development projects (including shared infrastructure), based on community needs and consultation.
In addition to setting out the procedures and actions that will be taken to achieve these objectives, the institutional arrangements, estimated costs and provisional schedule associated with LRP implementation are provided, as well as plans for grievance management and monitoring and evaluation.
This LRP has been developed in consultation with relevant State Government Ministries and Departments, other local authorities and those to be affected by the Project namely, (affected communities and host communities). The development of the LRP is the first step in the resettlement process. Once it has been finalized, it shall be implemented.
The Project will trigger economic displacement of land owners/users. However the project does not require any physical displacement (eg relocation of dwelling houses).
1.3 PROJECT DESCRIPTION
Seven Energy International Limited through its subsidiary (Accugas Limited) recently executed a Gas Sales Agreement (GSA) with the Niger Delta Power Holding Company (NDPHC) to deliver natural gas to the Calabar NIPP Plant. The Project involves the extension of the installation of 24” gas pipeline from Usung near Oron to Creek Town to tie-in NDPHC 24” pipeline from the NIPP Power Plant to supply approximately 130 MMScfd of natural gas to the NIPP Calabar Power Plant.
The route of the pipeline is from Usung (Oron) to Creek Town (see Figure 1.1) transverses 19 villages in three Local Government in Akwa Ibom State (Udung Uko, Oron and Okobo) and 4 villages in Odukpani Local Government Area of Cross River State. The route lies within co-ordinates 647807.40 – 641446.62 E and 84270.85 – 111750.41 N in the lower rainforest region of the Niger Delta.
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Figure 1.1 Alignment of the Usung (Oron) – Creek Town Pipeline
8°0'0"E 8°10'0"E 8°20'0"E
NIPP IP34 IP33
IP32 5°10'0"N IP31 AKAMKPA 5°10'0"N ITU . IP30 IP29
IP28
ODUKPANI IP27
IP26
IP25 IP23IP24 IP22
IP21
5°0'0"N IP20 5°0'0"N IP19 URUAN Creek Town Calabar
IP18 IP17 IP16
IP15
AKPABUYO
IP14
4°50'0"N Oron 4°50'0"N
OKOBO IP13 EKPE-ATAI
ORON IP12
NSIT UBIUM
URUE OFFONG ORUKO
4°40'0"N 4°40'0"N
EKET
MBO
UQUO-IBENO
6 3 0 6 Kilometers
NIPP/NDPHC Gas Pipeline settlement 4°30'0"N Proposed Gas Pipeline LGA boundary 4°30'0"N ATLANTIC OCEAN Adanga Pipeline Ukanafun Pipeline Oil Pipeline Uquo-Oron Gas Pipeline
8°0'0"E 8°10'0"E 8°20'0"E
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1.4 SUMMARY OF PROJECT LAND TAKE
Project land take from Usung to Creek Town comprises permanent acquisition of a 25m ROW to accommodate the pipeline and for use during construction. The entire ROW consists of permanent swamp forest and open water (creeks and river).
Table 1.1: Project (Usung – Creek Town) Land/Water Use
Width of Total Total No. No. of No. of No. of No. of ROW Area of Affected Villages Village Affected Affected (m) (hectare) Villages that land/water Individual People* land/water collectively Household is affected owned Permanent 25 55.75 23 23 23 Village Village (Swamp) Assets Assets Acquisition
Water Areas 25 12.13 23 23 23 Village Village Assets Assets
Details of land affected by the project are presented in Table 1..
Table 1.2 Land /SwampAffected by the Project
Local Government Pipeline Length Land/ Swamp Area Affected Water Land/Swamp Area Area (LGA) (km)* Affected by Area Affected (% of Permanent Use (ha) total affected area) (ha) Udung Uko 3.581 8.95 5.92 21.9% Oron 8.765 21.91 4.72 39.2% Okobo 8.164 20.41 - 30.1% Odukpani 1.953 4.48 1.49 8.8% TOTAL 22.463 55.75 12.13 100% Note: the pipeline length in each LGA area is calculated based on the area of affected land. 1.5 MINIMIZING RESETTLEMENT
1.5.1 Project Alternatives
Three alternative pipeline routing options were evaluated before selecting the current routing for the Usung (Oron) to Creek Town pipeline. In considering all three project options, Accugas took into consideration the resettlement implications of each via the following criteria: Amount of physical displacement of people living along the route; Impacts on livelihoods; Length of pipeline; and Number of Local Government Areas traversed. Route Option 3 was selected since it does not require physical displacement of dwelling houses. (Figure 1.2)
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Figure 1.2 Evaluation of Alternative pipeline Routes ( Usung/Oron – Creek Town )
8°0'0"E 8°10'0"E 8°20'0"E
NIPP 5°10'0"N 5°10'0"N AKAMKPA ITU .
ODUKPANI
5°0'0"N 5°0'0"N URUAN Creek Town Calabar
AKPABUYO
4°50'0"N 4°50'0"N OKOBO Oron EKPE-ATAI
ORON
NSIT UBIUM URUE OFFONG ORUKO
4°40'0"N 4°40'0"N EKET
MBO
UQUO-IBENO
EKET
Adanga Pipeline Route Option (3) 31km Oil Pipeline Ukanafun Pipeline ATALNTIC OCEAN
4°30'0"N Route Option (1) 29km Uquo-Oron Gas Pipeline 4°30'0"N Route Option (2) 31km settlement
6 3 0 6 Kilometers
8°0'0"E 8°10'0"E 8°20'0"E
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1.6 LIMITATIONS
The report is based on information provided by company and by field surveys between October and December 2014.
The information and statements provided in this report are not to be construed as legal advice.
This report, including annexes, supplements and related documents, has been prepared solely and exclusively for the use of the Seven Energy and its subsidiary Accugas, for the purpose of the Project. Accugas disclaims any responsibility to any person for the transfer or the use of the report for any purpose other than that for which it was originally prepared.
The report is confidential to the Seven Energy and its subsidiary companies and the specified recipients. Other parties may only rely on this report pursuant to a written Reliance Letter from Seven Energy or (Accugas ).
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2 SOCIO-ECONOMIC BASELINE
2.1 ADMINISTRATIVE STRUCTURE
2.1.1 Government Institutions
The Federal Republic of Nigeria is made up of 36 states and one federal capital territory and has a mixed legal system of English common law, Religious laws and traditional law.
Uyo is the capital of Akwa Ibom State, which comprises 31 Local Government Authorities. Calabar is the capital of Cross River State, which also comprises 18 Local Government Authorities. The project will pass through 19 villages in three Local Government Areas ( LGAs) namely Udung Uko, Oron and Okobo LGAs in Akwa Ibom State and 4 villages in Odukpani LGA in Cross River State ( refer to Figure 2.1).
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Figure 2.1 Project Layout Map and Affected Communities (Usung/Oron – Creek Town)
8°0'0"E 8°10'0"E 8°20'0"E
IP32NIPP 5°10'0"N IP31 5°10'0"N IP30 AKAMKPA ITU . IFAKO-OKOYONGIP29
IP28
IP27
ODUKPANI IP26
IP25 IKOT-OBONG-ENO IP23IP24 IP22 Isong Inyang IKOT-ESU IP21 Creek Town
5°0'0"N IP20 5°0'0"N IP19 URUAN
Calabar
IP18 IP17 IP16
IP15
AKPABUYO
IP14
EBIGHI-EDU
Nda 4°50'0"N Udung Okung 4°50'0"N Ebighi OkoboEsin UfotUbe OKOBO IP13 Esuk Oro EKPE-ATAI Oron
Udung UsotaiEkeya Udung Ulo
ORON Usung IP12 Eyotai Atabong Udung Adatang
NSIT UBIUM URUE OFFONG ORUKO
4°40'0"N 4°40'0"N EKET
MBO
UQUO-IBENO
EKET
6 3 0 6Kilometers
settlement Proposed Pipeline ATALNTIC OCEAN Adanga Pipeline Ukanafun Pipeline 4°30'0"N 4°30'0"N Oil Pipeline Uquo-Oron Gas Pipeline LGA boundary
8°0'0"E 8°10'0"E 8°20'0"E
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Table 2.1 Pipeline Affected Villages [Usung (Oron) - Creek Town Pipeline]
Gazette LGA No. Village Name (Y/N) Udung Uko 1 Usung Y 2 Eyotai Y 3 Eyokponung Y 4 Udung Adatang Y Oron 5 Esin Uffot Y 6 Esuk Oro Y 7 Idua Afaha Eduok Y 8 Idua Ukpata Y 9 Udung Okung Y 10 Udung Ulo Y 11 Udung Usotai Y 12 Idua Assang Y 13 Idua Esit Edek Y Okobo 14 Ebighi Okobo Y 15 Ekeya Y 16 Ube Y 17 Atabong Y 18 Ebighi Edu Y 19 Nda Y 20 Ebighi Okobo Y 21 Ekeya Y Odukpani 22 Isong Inyang Y 23 Ikot – Ebong ** Y 24 Ifako ** Y 25 Ikot –Esu ** Y Note: The pipeline route runs through communal owned swamps, rivers and creeks ** Section of ROW acquired by NDPHC and construction in these communities completed awaiting tie-in
Information provided in the following sections of this chapter was obtained through a census and socio-economic survey of all affected communities and persons in the project area between 10th November and 3rd December 2014. The census included a face to face survey to identify the number of communities and PAPs. The socio-economic survey covered demographics, income and living conditions. Village information such as leadership structures and infrastructure were obtained through village consultation and focus group consultation. Unless otherwise stated, all information presented in this chapter is obtained through primary field surveys.
2.2 COMMUNITY LEADERSHIP STRUCTURE
Akwa Ibom and Cross River States have similar traditional administrative structures and has over a total of 1500 grassroots traditional rulers, including village heads, clan heads and paramount rulers. A clan is usually constituted of a group of villages and a group of clans make up a LGA over which a paramount ruler presides traditionally. A council of clan heads (Traditional Rulers Council) is constituted at the local government level, while paramount rulers at the State level constitute a Council of Traditional Rulers.
Council of Chiefs and Village Heads
The council of chiefs, led by the village head, is the most powerful administrative institution at the community level. The village head (usually certified by the Government) represents the Government at the village level in relation to law and order, as well as in decision-making activities.
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Village Council
Each village has a village council, headed by a council chairman. It usually consists of a chairman, a vice chairman, a secretary, a treasurer and a financial secretary. In some villages, the women’s leader and community head’s wife are also members of the community council, as representatives of women.
2.2.1 Village Networks and Linkages
There are a number of organizations at the village level. These include council of chiefs, village council, women’s associations (forums), youth associations, fishermen cooperatives etc. These groups often play a role in the socio-economic development of the communities.
2.3 PROFILE OF AFFECTED COMMUNITIES
Population and Gender
The population of the four affected Local Government Areas through which the pipeline will pass is shown in Table 2.2
Table 2.2 Population and Gender
Udung Uko Oron Okobo Odukpani Total 53,278 87,209 102,753 192,884 Male 28,486 44,545 52,395 100,697 Female 24,792 42,664 50,358 92,187 Male (%) 53.47 51.08 50.99 52.21 Female (%) 46.53 48.92 49.01 47.79 Source: National Population Commission (NPC, 2006)
The entire ROW from Usung to Creek Town comprises of permanent swamp forest, rivers and creeks remote from the communities with the closest village settlement being between 1 and 3Km and is not habitable except for patches of higher grounds which are not submerged by water and are used as fishing camps.
Four fishing camps belonging to Eyoabasi Clan (Tobacco Island), Esin Uffot (Ubo Akpan Island), Idua Afaha Udok (Parrot Island) and Ine Okong Island were identified in Akwa Ibom section of the ROW while one camp belonging to Isong Inyang community was enumerated in Cross River axis of the ROW. The minimum distance of the ROW from these fishing camps is between 0.8 - 1.5Km.
The census identified 22 project affected communities/villages. All assets on the ROW were identified as communal assets. Fishermen constitute the project affected households and 430 affected households and 1,600 affected persons were also identified.
This census indicated that approximately 45.8% of the individuals from the affected communities’ households were female, slightly below the regional average of 46.6%.
Household Size
The average household size for the affected communities is seven persons. Approximately 64% of households have 5-10 members in one family. Large families are common within the project affected area, and multiple generations often constitute one household. Among the households covered by the census, 16% households consist of more than 9 members.
Age
In keeping with age trends at the national and state levels, the affected community population is quite young. Approximately one-third (34%of the PAPs are between the ages of 6-18 years, with a further 12.9% below the age of five. The working age population (19-50 years) constitutes 47.8%of the affected population, among them 40.5% are below 40 years. Accugas Limited February 2015 13
The high number of youths in the project area carries particular socio-economic implications. In addition to pressures on social infrastructure, such as education, health care and housing, this young population also increases competition for employment opportunities. Majority of these youths are unemployed, criminality and militancy abound in the creeks and rivers in the project affected area. The criminality and militancy along the creeks and river has further exacerbated the unemployment situation in the project area, as fishing which has traditionally been a fall back option in the absence of other viable employment area is adversely impacted. Accordingly, the youth are suffering from lack of opportunity to establish a steady income.
Education Level
Within the project affected area, around 13% of the adults are illiterate, and 40% has been educated only to primary school level. Around 30% of adults received secondary school and about 24% received tertiary education.
Professional or technical training levels in the project affected area are low. This is due in part to the lack of training opportunities available in this area, along with a lack of work opportunities where professional training could be applied.
2.3.2 Ethnicity, Religion and Language
Ethnicity
The main ethnic groups in the project affected area include Oro (90%) and Efik (9%). On-site observation revealed that customs, diets and traditional modes of dress tend to be similar throughout the project area, although there are different ethnic groups. The ethnicity status of PAPs is not considered to make any ethnic groups particularly vulnerable.
Religion
In the entire project affected communities majority of PAPs are Christians, with over 88% attending church on a regular basis.
Despite the influence of Christianity, cultural and traditional festivals associated with fishing and farming are still widely recognized and celebrated in the project affected area. Observance includes visiting and presenting sacrifices at sacred sites (eg shrines) in and around their communities. Approximately 11% of the respondents are traditionalists and that they visit traditional shrines. This low level of traditional religious observance could be due to the fact that many residents do not visit a shrine on a regular basis, but instead do this on special occasions or when considered necessary. Language
The main languages spoken in the project area are Oro and Efik. However, English is common across the project-affected communities. Approximately 70% of PAPs are able to read and write English, and 76% can speak English.
2.3.3 Land
Land Tenure and Ownership
In most of the Project-affected area, men inherit land from their fathers. Although, legally, women have a legal right to inheritance in Nigeria, in practice men rarely pass on land to their female children and as a consequence, few women own land in the community. After the death of a man, land and property is usually passed on to sons, if they are old enough, or to other male relatives, such as brothers or uncles. This allows land to remain within the family. Women can own land in the community through outright purchase and by inheritance (although this is rare). Women can also temporarily own land by leasing- women buy land use for specific number of years specifically for farming, once the agreed number years expire, their ownership of the plot expire. Women can also own land through pledge – a situation where a landowner
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uses a parcel of land for collateral against a loan for a specific period of time. Once the landowner pays the debt, he reclaims the land.
Land Cultivation
The entire land on the proposed right of way is not arable (permanent swamp forest) other land in the project affected communities are arable and are used for growing crops such as cassava, maize, cocoyam, vegetables, palm harvesting and palm wine tapping. These farming activities are at subsistence level.
Box 2.1 is the seasonal calendar which shows key agricultural activities throughout the year.
Box 2.1 Seasonal Calendar
January - March: Land clearing and preparation for planting and fish harvesting in small ponds conducted by men and women. January – March: planting of cassava, maize, cocoyam, and water yam mainly by women. April – June: weeding, carried out by women. April to September: rainy season; women crack palm kernels, transport firewood from the farm/forest to the house. January – December: Harvest of raffia palm wine and palm fruit by men only; cassava done all year round, mainly by women.
Farming activities undertaken by men include land clearing, making mounds for yam and cassava, cutting palm fruits, harvesting raffia wine, (some harvest cassava also) and cutting of firewood. In contrast, women plant cassava, vegetables, maize, yams and cocoyam. They also weed and harvest their crops.
2.3.4 Communal Resources
Forest
The presence of forests in the project affected area provides an area for hunting of mammals, birds, and reptiles for consumption and sale particularly at the Cross River section of the project affected communities. The forest in the area is also exploited for timber and/or non-timber products (eg palm fruits, snails and medicinal plants) for use or sale by local communities. Water Resources
The rivers and creeks in the affected communities are important fisheries. Most households in the project affected communities have fishing nets. 54% of the PAPs reported that they own a canoe for fishing and 24% indicated that they own a motorized boat.
2.3.5 Housing
Local dwelling houses include the following major types: Brick - Concrete Structure (53.3%). Mud with Corrugated Iron (Zinc) (28.2%) Mud with Thatch Roof (14.4%); and Brick-wood House with Steel Roof (4.1%).
No residential structures or shelters will be affected by the pipeline installation.
2.3.6 Infrastructure
The quality of infrastructure is poor in the project affected communities. Affected communities have reported that this is an impediment to economic growth.
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Electricity
In the project affected areas, local communities have access to electricity. However, the supply is epileptic and unreliable nearly all affected residents complain about its irregularity. Part of the reason for this poor supply is that the local transformers are small, which leads to low supply and frequent cut-offs. In view of the frequent light out and cuts the use of bush lamps and candles for the main source of lighting in the project affected communities. The petrol generating sets are utilized by relatively well-off individual in the communities.
Telecommunications
Residents in the affected communities have access to mobile phones and most national networks are available for use. Mobile communications are affordable to most residents. This is evidenced by the fact that each household owns an average of 2 mobile phones. Given the average household size is about seven members, it indicates that around one-third (32%) of residents own a mobile phone.
Radio is a common method of getting information (news and adverts) in the affected communities and each household own 1.0 radio.
Road and Communication Network
Except for Isong Inyang Village that can be accessed only by boat, other 22 villages can be accessible by land. Communities in the project affected area are served by unpaved roads that link them to main roads to LGAs. The condition of roads within the affected communities is generally considered by PAPs to be ‘poor’, or ‘unsatisfactory’. Since commercial buses do not service the local area, transport of goods and people out of the communities is either by private cars, motorcycles, bicycles or wheelbarrows.
Motorcycles are the most common form of transportation used by local residents. Motorbikes are used by local residents to access the main roads to LGAs, particularly when the roads become impassable for cars. Wheelbarrows are used by the local residents to carry goods within the local community. Bicycles are owned by 72% of households on average. Due to the poor condition of local roads, cars and trucks are less common.
Water supply
Potable water supply is lacking in the project affected area. The main sources of water supply for consumption and domestic uses are from rain water, run-off water collected from thatched/woody/rusty iron sheet roofs. The water from these sources is not potable and unhygienic. In the dry season, domestic water supply is shallow hand-dung wells. Water is also sourced from shallow streams some of which are seasonal. There are many dysfunctional boreholes which were provided by state/local governments and the Niger Delta Development Commission (NDDC). Few individuals within the project affected communities buy water from commercial water tankers at between 50 Naira for a 20litre jerry can. Given that sources of most community water are located within village residential area, from where the distance to the Project ROW is about 1km on average, the pipeline installation may not affect community water sources. None was observed to be affected during the survey.
Recreational Facilities
Communal places for recreational activities and meetings include town halls and other structures, in many cases financed by the villagers and Local Government Council. Most of the affected communities have no town halls or other structures for holding meeting and recreational activities.
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Educational Institutions
About 34% of the consulted villages in the project affected area have a primary school. Less than one quarter of the villages have a secondary. However, secondary schools are within 1km away from most the project affected villages without a secondary school. There is a technical tertiary training school in the Project- affected area (Oron Maritime Academy).
Demographics of Affected Households
2.3.7 Household Income and Expense
Overview
This section presents details of the livelihood patterns of the 230 affected community persons who provided data during the socio-economic survey in November-December 2014. The monthly income of PAPs ranges from N6, 500 to N150, 000 while the monthly expense ranges from N5, 800 to N129, 000. The mean monthly net income of the affected communities is N37, 900 per household.
Income
Across the project affected area, the predominant source of income of the PAPs is water-based; this includes fishing and small trading business in fishes and sea foods; this accounts for a total income of 62.8% for the PAPs. Farming, gardening and livestock breeding (piggery) accounts for 22.6% of total income. The remaining 14.6% of the income earning of the people consists of wages, hunting, rentals, financial sustenance and trading on non-timber forest product.
Figure 2.2 Monthly Income Sources
Note: Financial assistance from family members or relatives.
Most households reported having a combined monthly income of over N100, 000 (USD 552) (1). However 2.6% of affected households, with an income below the national poverty line (N4, 800 per month per household), are considered to be impoverished under Nigerian standards (2).
(1) Based on a currency exchange USD 1= Naira 181 as of 26 November 2014. (2) This equates the official poverty line in Nigeria. Accugas Limited February 2015 17
Using the World Bank Poverty Line of (USD 1.25 a day per capita) (1), the proportion of affected households living in poverty rises to 26.2%. Considering 70% of Nigerian population are under World Bank Poverty Line (2007) (2), the affected people in the Project-affected area have a higher average income than the national average.
Figure 2.3 Monthly Household Income Distributions
2.2% 9.6%
Below N 4,800
14.4% N 4,801 - N 20,000
48.1% N20,001 - N 41,895
N 41,896 - N 90,000
N 90,000+ 25.6%
Expenditure
The largest average monthly spend of PAPs was reported to be food (22.3% of total expenditure), production costs/agricultural inputs (16.1%) and education (22.3%). Based on a sum of the items reported, the average total monthly expenditure was N123, 198 (USD 680) per household. Given there are seven persons a household, the per capita daily expenditure is about USD 3.2 It should be noted that there is evidence that incomes may have been exaggerated during the process of socio-economic survey.
(1) The World Bank default poverty line of $38.00 per month at 2005 Purchasing Power Parity is the ’USD1.25 a day" line. (2) https://www.cia.gov/library/publications/the-world-factbook/fields/2046.html Accugas Limited February 2015 18
Figure 2.4 Monthly Household Expenditure
How to Use the Compensation
When asked how additional family money (eg. cash compensation from Accugas land use) is spent, almost half (45.9%) of PAPs want to build a house. The other three proposed usages of the money include small businesses (19.9%), family consumption (17.3%) and investment on agricultural production (16.1%).
Figure 2.5 Money Usage of the Project Affected Households
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2.3.8 Food and Nutrition
On average, PAPs eat fish 30 times per month, almost once per day. Meat is consumed 15 times per month, or once every other day. Fish is common since it can be caught from the rivers and streams in the local area. While the meat is mainly pork brought from the market.
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3 PROJECT IMPACTS
3.1 PROJECT AFFECTED LAND
The pipeline project land uptake comprises of a permanent acquisition of a 25m ROW to accommodate the pipeline and for use during construction and maintenance of the pipeline in the swampy and river/creek terrain.
Figure 3.1 Land Use Diagram
Survey Marker (Cast Concrete 20cm x 20cm with Centre Pole 250m between Markers along Survey Route.
GAS PIPELINE
PERMANENT RIGHT OF WAY 25m
All information presented in this chapter was obtained through primary land survey and asset inventory conducted in November-December 2014.
Table 3.1 presents details of affected land/water and number of affected households. Acronyms used in the table include: LGA: Local Government Area; LA: Land Acquisition; HH: Household
Table 3.1 Project Land/swamp Use
LGAs Villages LA (ha) No. of HHs Area of No. of HHs Affected by LA Swamp (ha) Affected by Swamp Udung Usung 1.92 18 1.92 18 Uko Eyotai 1.67 9 1.67 9 Eyokponung 1.65 10 1.65 10 Udung Adatang 1.47 11 1.47 11 Ine Okong 0.64 32 1.92 32 Sub- total 1 7.35 80 7.35 80 Oron Eyoabasi Clan 2.71 23 2.71 23 Esin Uffot 1.94 20 1.94 20 Esuk Oro 1.36 12 1.36 12 Udung Usotai 1.36 8 1.36 8 Udung Ulor 1.36 10 1.36 10
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LGAs Villages LA (ha) No. of HHs Area of No. of HHs Affected by LA Swamp (ha) Affected by Swamp Oron Udung Okung 1.36 15 1.36 15 Idua Clan Idua Ukpata 2.95 38 2.95 38 Idua Afaha Eduok 4.37 16 4.37 16 Idua Esit Edek 2.25 10 2.25 10 Idua Assang 2.25 8 2.25 8 Sub-total 2 21.91 160 21.91 160 Okobo Ube 2.54 12 2.54 12 Ebighi Okobo 2.54 15 2.54 15 Nda 2.13 16 2.13 16 Ebighi Edu 2.13 12 2.13 12 *Atabung group 4.25 32 4.25 32 of villages **Ekeya group of 6.26 47 6.26 47 villages Akibabo 0.71 6 0.71 6 Amamong 0.71 10 0.71 10 Sub-total 3 19.27 150 19.27 150 Odukpani ***Isong Inyang 4.88 50 4.88 50 group of villages Sub-total 4 4.88 50 4.88 50 TOTAL 53.41 440 53.41 440 *Atabung Group of Villages: Ikot Okonkon, Ikot Odiong, Ikot Osukpong, Ikot Iquo and Ikot Ema Antai.
** Ekeya Group of Villages: Ekeya, Anua, Esuk Inwang, Idibi Ening, Ufok Esuk, Ekpene Ukim, Obot Inwang and Nung Ukuna.
*** Isong Inyang Group of Villages: Ikot Nsa, Ikot Eyo II, Ikot Ukpo, Ikot Efa, Ikot Utam, Isong Inyang Eyo, and Ikot Usuk Usuk
All villages/ communities will be affected by loss of water area (swamps) and the swamp, creeks and rivers are communal assets.
3.1.1 Affected Cultivated Land
The entire project land is a permanent swamp forest and is not arable for crop cultivation as the land is permanently submerged with tidal water. The only standing vegetation is Nipa Palms at the swamps/river banks.
Loss of Standing Crops/Trees
The project is not expected to cause loss of standing crops and trees except for some fringes of mangrove plants at Isong Inyang end of the ROW and the aggressive vegetational successive Nipa palm which have replaced the native mangrove plants along the creeks, river/estuary banks and swamps in the area.
Table 3.2 Project Affected Trees
Category Economic Trees Total Mature Immature Seedling Nipa Palm 99,697 N/A N/A 99,697 Soft Wood 212 N/A N/A 212 Total 99,909 N/A N/A 99,909
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3.2 AFFECTED SHRINES
In total 7 village shrines will be affected by the pipeline installation. The locations of the shrines are one each in Eyotai, Eyo Okponung and Udung Adatang in Udung Uko Local Government Area in Akwa Ibom State axis of the ROW. Four communal shrines were encountered in Ikot Nsa Effiom, Ikot Eyo II, Ikot Ukpo and Ikot Efa in Odukpani LGA of Cross River State section of the ROW. These shrines are expected to be appeased and relocated.
Figure 3.2 Project Affected Shrines
3.3 CATEGORIES OF PROJECT AFFECTED PEOPLE
The socio-economic surveys conducted for the preparation of this LRP established that there are three categories of affected people who will be exposed to losses as a consequence of the Project’s land occupation, and who will thus be eligible for some form of compensation and/or other assistance. These categories are as follows: 1. Land occupier: customary right of land occupancy ( Community Asset) 2. Tree (Nipa Palm and soft wood/mangrove) - Community Asset 3. Individuals Dependent on Communally Held Swamps and Water Resources / Assets
Note: The entire Right of Way transverse 17.94Km marshy swampy and 5.54Km water body owned entirely by communities/villages.
Village/Community: (i) hold a customary right of occupancy over the swamps and surface water (ii) Trees/Nipa palms are accordingly communal assets. (iii) Individuals who depend on communally held swamps, creeks and rivers include fishermen and persons who pick benthic non-fisheries resources such as periwinks , snails etc.
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3.3.1 Loss of Swamp/water for fishing
Community (village) leaders hold customary right of occupancy over entire swamps and water bodies on behalf of the community. The swamps and water bodies that the ROW transverse are not arable, and are not used to cultivate crops; rather both are used for subsistent fishing and for harvesting non-fisheries resources (snails, periwinkles etc).
3.3.2 Loss of Community Resources (Tree and Nipa palm)
The trees/ native mangrove plants have been reduced to fringes and are localized at the Isong Inyang end of the ROW. Nipa palms are the dominant vegetation on the ROW and have replaced the indigenous mangrove plants in the swamps, creeks and estuaries of area. Communities reported that they occasionally use the Nipa palms as building materials especially in the fishing camps identified on the ROW.
International Best Practice: Appropriate Project Interventions According to international best practice, providing sufficient compensation for land improvements, including standing crops and trees, is key to ensuring that resettlement operations take place with the least possible disturbance to those experiencing it. The principle of full replacement should underlie provisions for loss of crops and trees, and in-kind replacements such as seeds and seedlings should be provided, rather than merely cash. OP 4.12 and PS 5 also require that a transition allowance is provided to cover the crop and tree related income losses that will be incurred over the period of time that it takes for equivalent crops/ trees to be re-cultivated to a comparable volume of harvest in the post-relocation setting.
3.3.3 Owner of Structures / Assets
Members of this group either occupy, or depend on an area of the land within the ROW, and in turn own structures / assets there that will need to be relocated. The structures are essentially shrines which are owned by the communities. A total of seven shrines were identified during the survey and valuation.
3.3.4 Individuals Dependent on Communally Held swamps Resources / Assets
Table 3.1 outlines the number of persons who will be denied permanent or temporary access to fishing and other non-fishing rights during construction of the pipeline for a period ranging between 6 and 9 months. A total of 53.41 hectares of water and swamp will be affected (7.35Ha in Udung Uko area; 21.91Ha in Oron LGA; 19.27Ha in Okobo and 4.88Ha in Odukpani LGA). All villages claimed that swamp/water/assets were community owned.
3.3.5 Vulnerable Groups
Vulnerable groups are defined as those who, by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by land acquisition than others, and who may be limited in their ability to claim or take advantage of assistance provided by eth project and related development benefits.
The socio-economic surveys identified the following vulnerable groups:
Women headed households without one or more family members of working age in the household. Situated within a patriarchal society, women tend to be prevented from participating in local decision-making. They also tend to lack access to independent means of income generation. The household survey identified 2 households within the group. Households headed by disabled and/or elderly people (>60 years(1) ) without one or more family members of working age in the household. Those with physical or mental
(1) This is the official retirement age in Nigeria. Accugas Limited February 2015 24
disability and /or old age are typically unable to access an independent means of income generation. 3 households were identified in this group. Households living in poverty. Those with a combined household income of less than 4,800 naira per month (1). 7 households were identified.
Large number of persons presented themselves as vulnerable, this thus requires further work in order to ascertain actual vulnerability.
(1) This equates to the official poverty line in Nigeria. Accugas Limited February 2015 25
4 LEGAL AND ADMINISTRATIVE FRAMEWORK
4.1 INTRODUCTION
This section provides a review of two Nigerian laws most relevant to land acquisition of the gas pipeline, namely the Land Use Act (1978) and the Oil Pipeline Act (1990), as well as a comparison between the Nigerian legal regime for land acquisition and IFC PS 5.
4.2 LAND USE ACT, 1978
4.2.1 Background
Land use and ownership in Nigeria is governed by the Land Use Act of 1978. Prior to the promulgation of the Act, there was a multiplicity of land tenure systems in Nigeria with the Maliki Law system dominant in pre-colonial northern Nigeria until 1910 when an Ordinance conferred on the colonial governor control of all lands in that part of the country. In the remaining areas of Nigeria, land was owned by extended families, lineages or whole communities with the head of the families or communities having custodial rights over land (1).
Under the differing land tenure systems existing before the Land Use Act, particularly in southern Nigeria, individuals typically only had a right to use communal or family land, either for a definite or an indefinite period. Such usufruct rights could not translate into personal ownership of the land (2).
The land tenure system in existence before the Land Use Act encouraged multiple sales of the same parcel of land to different people because of the absence of a titling system or public record of extant land holdings. The land tenure system in existence before the Land Use Act also made it difficult for non-indigenes and governments to acquire land for public infrastructure projects, due to the customary reluctance of communities to cede ownership of land to non -natives.
With the promulgation of the Land Use Act, the ultimate title of all lands situated in Nigeria now vests in the Governor of each State, in trust and for the common benefit of all Nigerians. Ultimately, the Land Use Act was promulgated to support fair and equitable access to land, and to encourage its productive use through: (i) a system of registration of titles; (ii) placing a cap on tenure of rights over land; (iii) the issuance of paper titles (Certificates of Occupancy); and (iv) the institution of a regime of rents, fees and taxes (3).
4.2.2 Land Ownership and Use
The Land Use Act came into force on 29 March 1978 and replaced all pre-existing land tenure systems throughout Nigeria. The Act essentially does three things:
It places land into two categories: urban land and non-urban land, as designated by the Governor of a state wherein the land lies.
It redefines title in land to be a right to occupy or use the land rather than to own it; namely: o a statutory right or a deemed statutory right of occupancy for land in urban areas; and o a customary right or a deemed customary right of occupancy for land in non- urban areas.
(1) “Land Reforms in Nigeria: Progress, Problems & Prospects” A paper presented by Professor Akin Mabogunje, Chairman Presidential Technical Committee for Land Reforms set up in April 2009. (2) So held the Nigerian Supreme Court in the case of Ogboni V. Ojah (2003) 2NLLC pp 713-4. (3) US AID. Nigeria Country Profile. 17 November 2010. Available at: http://usaidlandtenure.net/usaidltprproducts/country-profiles/nigeria [Accessed 25.08.11].
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It empowers the Governor of a state to revoke rights of occupancy.
It should be noted however that the effect of the Act was merely to put the control and management of lands in to the hands of Government. This is because the vesting of the ultimate title in the Governor in reality does not completely obliterate the underlying interests in, and “native title” to, the land, which still depends to a significant extent on customary practices (1). Therefore, although section 1 of the Act vests legal title of all lands in the territory of a state in the Governor, and section 5(1)(a) and 6(1)(a) empower the Governor / Local Councils to issue statutory or customary rights of occupancy, rights of land owning families and communities existing before the promulgation of the Act were not abrogated. Section 34(2) and (5)(a) and section 36(2) and (4) preserved these rights, albeit under a new nomenclature, ie deemed statutory or deemed customary rights of occupancy. Therefore, persons, families and communities owning or occupying land prior to the Act automatically enjoy the status of deemed statutory or deemed customary occupancy rights holders, and may or may not apply for the issuance of a paper Certificate of Occupancy, or otherwise “perfect” / register their land holding (see section 34 (3) and 36(2)).
In the purposes of this LRP, for simplicity, the occupancy right held by the community and those receiving title from the community will be termed a “customary right of occupancy”.
4.2.3 Compensation Provisions
When rights of occupancy are subject to revocation by “overriding public interest”, holders of rights of occupancy are, under the Land Use Act, entitled to compensation for the value at the date of revocation of their unexhausted improvements (section 29). In other words, they are not entitled to compensation for the land itself, but rather only to compensation for improvements made to the land, such as standing crops, buildings, fences etc. In addition, depreciation is taken into account in assessing the value of these improvements. For individually-held land, the Act states that compensation should be paid to the individual who holds the occupancy right. For communally-held community land, where occupancy rights are not claimed by any one individual, the Act states that the recipient of the compensation may be: (a) the community; (b) the chief or leader of the community, to be disposed of by him for the benefit of the community in accordance with the applicable customary law; or (c) a community fund, to then be utilised for the benefit of the community (section 29(3)).
4.3 OIL PIPELINE ACT (1990)
The Oil Pipeline Act (1990) allows for licences to be granted for the establishment and maintenance of pipelines incidental and supplementary to oilfields and for purposes ancillary to such pipelines.
4.3.1 Permit to Survey
Section 4 (1) stipulates an application should be made to the Minister of Petroleum Resources for the grant of a permit to survey the route for a gas pipeline. Accugas obtained the survey permit in January 2012 and completed the survey in March 2011.
4.3.2 Oil Pipeline License
Following the survey, the project proponent can apply to the Ministry of Petroleum Resources for the Oil Pipeline License and such application should be publicized in the State Gazette of each State, newspapers, posters and/or other means along the proposed pipeline ROW.
A licence shall entitle the project proponent to acquire or use temporarily a ROW of a width not exceeding two hundred feet in order to construct, maintain and operate an oil pipeline and ancillary installations.
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Accugas commenced the application for the oil pipeline license in line with the Oil Pipeline Act.
Table 4.1 Pipeline Land Right
Name of Document Government Department Permit to Survey Department of Petroleum Resources, Lagos Application for an Oil Pipeline License Minister of Petroleum Resources Accugas Limited Application for an Oil Ministry of Petroleum Resources Pipeline License Submission of Preliminary Route Survey and Accugas Request for Estimate for Acquisition of Pipeline ROW for Oron – Creek Town Public Hearing for the Application of Ministry of Lands and Town Planning, Akwa Pipeline Licence Ibom State and Cross River States Oil Pipeline Licence Minister of Petroleum Resources
4.3.3 Compensation
The Oil Pipeline Act requires the holder of a pipeline licence to pay compensation to those affected. In summary: Compensation is payable for damage to any buildings, crops or plantations. Compensation is payable for the loss in value of land. No compensation is payable in respect of unoccupied land.
The loss in value of the land is equal to the difference between the value of the land at the date immediately before the licence is granted and the residual value of the same land at the date of the grant of the licence, if such residual value is a lesser sum.
The provisions of the Land Use Act shall be applied in determining compensation as far as they are applicable and not in conflict with any of the requirements of the Oil Pipeline Act, as if the land were acquired by the President for a public purpose.
Where the land affected is held by a local community, the compensation may be paid to any chief, headman or member of that community on behalf of such community, or paid in accordance with a scheme of distribution approved by the court, or paid into a fund to be administered by a person approved by the court on trust for application to the general, social or educational benefit and advancement of that community or any section thereof.
4.4 IFC PERFORMANCE STANDARD 5
In addition to the need to adhere to Nigerian legislative requirements, the Project will also seek to align with IFC PS 5: Land Acquisition and Involuntary Resettlement (2012). The IFC PS5 provides a comprehensive framework for resettlement planning and implementation, and is generally recognised as an international benchmark for responsible land acquisition by the private sector.
4.4.1 Key Elements of IFC PS5
Full Replacement Cost
The principle of full replacement cost should be adhered to in assessing losses and providing appropriate compensation measures. This principle can be defined as the market value of the land / assets plus transaction costs. When employing this method of valuation, depreciation should not be taken into account.
(1) As acknowledged by the Nigerian Supreme Court in the case of Ogunola vs. Eiyekolo (1990) 4 N.W.L.R. (Pt.146) 632 at 632 per Karibi – Whyte, JSC.
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Transitional Costs
In addition to providing compensation for loss of land and other assets, the costs associated with the transition from one livelihood activity to another, or any other income loss associated with the displacement process, should be compensated. The provision of assistance with the relocation process itself, or a cash amount to cover the costs of the physical move, should also be allocated where necessary.
Eligibility
A broad approach to eligibility should be adopted. Those who have formal legal rights to affected land or other assets and those who have customary and traditional rights to the use of affected land or other assets should be eligible for compensation, livelihood restoration and other assistance. In other words, the absence of legal title to land or other assets is not, in itself, a bar to compensation. In addition, encroachers, “squatters” or people who are residing on or otherwise occupying land in violation of local or national laws are also deemed as an eligible group in the context of compensation provision(1) . While people who belong to this group should not be entitled to compensation for loss of land, they should be provided with compensation for any improvements made to the land (such as structures, crops and trees), as well as to other assistance.
In-Kind Compensation
In-kind compensation (together with security of tenure for replacement houses and land) should be provided in lieu of cash compensation where feasible, and particularly for those who may lack experience with using cash sustainably and productively. In-kind provisions should also be prioritised in the context of replacing affected common property resources.
Livelihood Restoration (LR)
Means of income earning capacity, productivity levels and associated livelihoods and standards of living should be at least restored to, and preferably improved beyond, pre-Project levels. Indeed, the land acquisition process should be managed as a development initiative, such that affected communities are ultimately better off after Project implementation.
Disclosure, Consultation, Informed Participation
Land acquisition and compensation activities should be implemented with appropriate disclosure of information, consultation and the informed participation of those affected.
Vulnerable Groups
Those populations identified as vulnerable should be provided with extra assistance to ensure that their vulnerability is not exacerbated.
4.4.2 Gaps between Nigerian Practice and International Standards
The main gaps between the local legal requirements and IFC PS5 regarding land acquisition and associated activities can be summarised as follows:
Under Nigerian law, there is no requirement for the payment of compensation for land per se by the acquiring authority because the rights being revoked are occupancy rather than ownership rights. Under Nigerian law, there is no requirement for public participation or consultation during the land acquisition process.
(1) IFC PS5 specifically states that “while some people do not have rights over the land they occupy, this Performance Standard requires that non-land assets be retained, replaced, or compensated for; relocation take place with security of tenure; and lost livelihoods be restored.” (Article No. 5, Footnote 8)
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Under Nigerian law, compensation is paid only for land improvements and depreciation is taken into account, i.e. not provided on the basis of full replacement cost. In Nigeria, compensation does not have to be paid prior to the removal of assets. Under Nigerian law, there is no requirement for livelihood restoration / improvement. There is also no requirement to manage land acquisition as a development initiative. In Nigeria, there is no requirement to compensate for transition costs suffered as a result of the land acquisition process (eg temporary loss of use of resources, title charges, re- connection costs, legal costs or transactional costs, etc). Under local law, there is no requirement for the provision of supplementary assistance for vulnerable individuals and groups.
Table 4.2 provides further details of the gaps between Nigerian laws, IFC PS 5, together with a description of the Project’s strategies to fill such gaps.
Note: Considering that little guidance exists on the detail of how local legislation should be implemented and that there is significant variation in the way that local legislation has been implemented in the past, the gap analysis draws only from what is known to have been carried out in this particular Project context.
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Table 4.2 Gap Analysis: IFC PS 5 and Local Requirements
Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap
Project Design F easible alternative project designs should be Local legislation does not mention the need to Gap: Local law does not require the Project to avoid or considered to avoid or minimize physical avoid / minimise displacement. It requires the minimise displacement by seeking alternative Project and/or economic displacement, while revocation of rights of occupancy if the land is designs. balancing environmental, social, and financial required for overriding public interest. costs and benefits, paying particular attention Project Position: Project has sought to minimise to impacts on the poor and vulnerable. displacement and documented this in Section 1.5 of this LRP. Livelihood If economical displacement is involved only, a Local legislation does not require the Gap: Local law does not require the Project to Restoration Livelihood Restoration Plan should be development of a Livelihood Restoration Plan. prepare a Livelihood Restoration Plan. Plan prepared to address to compensate affected persons and/or communities and offer other Project Position: The Project has prepared a LRP that assistance that meets the objectives of this addresses both Nigerian standards and international Performance Standard. practice.
Census and Where involuntary resettlement is A survey is required to record the position and Gap: The requirement for a census and asset Asset unavoidable, a census will be carried out to dimensions of the land parcel to be acquired, the inventory under international standards is more Inventory collect appropriate socio -economic baseline spatial relation to properties in the area, and a list comprehensive than the requirements under local law. data to identify the persons who will be of communities on the property. The level of detail of the information required under displaced by the project, determine who will international standards is greater than that required be eligible for compensation and assistance, The enumeration process is asset driven and not under local law. and discourage ineligible persons, such as household driven. There is no particular format opportunistic settlers, from claiming benefits. which is currently used by the Land Department. Project Position: A comprehensive census of affected The census will establish the status of the The process mostly comprises of generic persons, socio-economic baseline survey and asset displaced persons. questions that are administered orally, and on the inventory has been prepared for the Project. basis of factual information and observations, the entitlement for the families is suggested.
Consultation Ensure resettlement activities are A notice of acquisition is usually prepared by the Gap: Local law does not require the Project to and implemented with appropriate disclosure of Ministry of Lands, in conjunction with the survey undertake formal consultation with affected Participation information, consultation, and the informed description. The notice is then published in two communities, or ensure their participation in the land participation of those affected. newspapers (one national and the other local) and acquisition process. the government gazette. This disclosure is not however supplemented by any proactive Project Position: Consultation with affected consultation or other participatory activities. communities has been undertaken regarding key aspects of the land acquisition process. Consultation
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Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap
for the LRP included scoping, ROW pre-mapping, community notification letters, community town-hall meetings, focus group discussion, socio-economic surveys, and survey result disclosure processes. Key aspects of the LRP will be disclosed in an appropriate manner to affected communities.
Vulnerable Particular attention will be paid to the needs Local law does not specifically address the Gap: Local law does not require the Project to pay Groups of the poor and the vulnerable. concerns of vulnerable groups in relation to land particular attention to the needs of vulnerable groups. acquisition activities. Project Position: Vulnerable groups have been identified and will be registered for future livelihood restoration monitoring. Specific measures for compensation and livelihood assistance have been developed, and specific funds will be allocated for this purpose.
Compensation Compensation for loss of assets at full The compensation required under local legislation Gap: The principle of full replacement cost is not – Full replacement cost and other assistance. covers only “unexhausted improvements” made employed under local legislation and there is less of Replacement No compensation or assistance are required to the affected land in instances where occupancy an emphasis on the need for in-kind replacement. Cost, In-Kind for those who encroach on the project area rights are subject to removal. Compensation takes Security of tenure is also not a local legislative Provisions after the cut-off date for eligibility, provided depreciation into account and market rates are not requirement. and Security the cut-off date has been clearly established employed as a basis for valuation. of Tenure and made public. Project Position: The Project has adopted the Local legislation, while permitting in-kind principle of full replacement cost as the basis for replacements, remains largely focused on cash- compensation for loss of assts. based compensation.
Eligibility and Displaced persons may be classified as All land rights constitute occupancy rights rather Gap: Eligibility criteria under local legislation are Entitlements persons (i) who have formal legal rights to the than ownership rights and accordingly eligibility narrower than that under international standards. In land or assets they occupy or use; (ii) who do for compensation for loss of land is non-existent. particular, while statutory and customary occupancy not have formal legal rights to land or assets, Anyone possessing a statutory or customary right rights are recognised, compensation is not payable for but have a claim to land that is recognized or of occupancy to affected land is only entitled to occupancy of the land. Encroachers are not recognised recognizable under national law; or (iii) who compensation for “unexhausted improvements” under local legislation, whereas under international have no recognizable legal right or claim to made to that land. Encroachers are not standards such people are eligible for compensation. the land or assets they occupy or use. recognised as an eligible group, and are thus not entitled to any compensation provisions. Project Position: The Project will take a broad and
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Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap
comprehensive approach to eligibility, treating occupancy rights as ownership rights and compensating accordingly. Other groups such as encroachers are deemed an eligible group for the purposes of compensation by the Project.
Cut-Off Date In the absence of host government Though a cut-off date is not written into local Gap: Under local legislation, there is no requirement procedures, a cut -off date for eligibility legislation, discussions with the Ministry of Lands to set a cut-off date. Common practice is for this to be should be established. suggest that there is a six week notice period set at the end of the survey and valuation process. given prior to land being acquired by the Project. This is not however a cut-off date in the formal Project Position: The end of the survey and valuation sense. process was established as the cut-off date for the Project.
Timing Possession of acquired land and related assets Local legislation suggests that compensation Gap: While there is a suggestion in local legislation should happen only after compensation has should be paid within a reasonable time period. that compensation should be provided in a timely been made available and, where applicable, manner, there is no clarity as to what a timely manner resettlement sites and moving allowances actually means. have been provided to the displaced persons in addition to compensation. Project Position: The Project will ensure that compensation is made in full prior to land occupation and removal of assets.
Grievance A grievance mechanism will be implemented Local legislation has no requirements to establish Project Position: Local law does not require a Mechanism / consistent as early as possible in the project a grievance mechanism. Disputes concerning grievance mechanism to be established so that issues Redress development phase, to receive and address compensation shall be referred to the appropriate regarding the Project or land acquisition can be specific concerns about compensation and Land Allocation Advisory Committee. Failing reported, recorded and addressed. relocation raised by displaced persons or this, recourse to court is possible. members of host communities in a timely Project Position: The Project will implement a fashion, including a recourse mechanism grievance mechanism that will be accessible to PAPs. designed to resolve disputes in an impartial manner. Internal Monitoring procedures will be established to Local legislation does not specify any monitoring Gap: Local law does not require monitoring and monitoring monitor and evaluate the implementation of a and evaluation requirements. evaluation of livelihood restoration activities. Livelihood Restoration Plan and take corrective action as necessary. Project Position: The Project will establish systems for monitoring and evaluation as proposed in this LRP.
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Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap
Completion The completion audit should be undertaken Local legislation does not require a completion Gap: Local law does not require a completion audit. audit once all mitigation measures have been audit. substantially completed and once displaced Project Position: The Project will undertake a persons are deemed to have been provided completion audit as proposed in this LRP. adequate opportunity and assistance to sustainably restore their livelihoods. The completion audit will be undertaken by competent resettlement professionals once the agreed monitoring period is concluded.
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4.5 PROJECT LAND ACQUISITION STRATEGIES
The following underlying principles will guide planning and implementation for all Project land acquisition and associated activities:
1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline Act (1990) and all other applicable Nigerian laws and regulations. 2. The Project will compensate affected persons for loss of assets at full replacement cost. 3. The Project will treat occupancy rights as ownership rights for the purposes of compensation and will compensate accordingly. The Project will compensate the replacement cost for permanently acquired land. 4. Encroachers will be eligible for compensation of affected assets. 5. The Project will pay compensation in full prior to the occupation of land or removal of assets. 6. The Project will implement livelihood restoration measures in order to assist PAPs to restore incomes to pre-displacement levels. 7. Vulnerable groups will be identified, registered and their livelihood monitored. Specific measures for compensation and livelihood assistance will be developed and funded by the Project. 8. A grievance procedure will be accessible to all those affected by the project. 9. The Project will establish systems for monitoring and evaluation (including a completion audit) as proposed in this LRP.
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5 INSTITUTIONAL ARRANGEMENTS
5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD RESTORATION PROCESS
Figure 5.1 represents a schematic flowchart of the project land acquisition planning and implementation procedures.
Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process
E R U D E N O C I T O A P I R C I P T R A P S D S N A E N R O I D T A T E L U R S N O C E Y C T I N N U A M M O V C E I R G Scoping Land Acquisition Impacts
Community Pre-entry and Notification
Census, Land/Asset Surveys
Cut-off Date
Grievance redressprocedure Grievance Livelihood Restoration Plan Septa
Compensation Entitlement PAPs Livelihood Restoration
Costs and Budget Land Acquisition Committee
Supplementary Survey of Unregistered Assets LEGEND
Orientation of PAPs Septa
Land Acquisition Committee
Compensation Agreement and Payment PAPs
LRP Consultant
Livelihood Restoration Measures Completed Activity
Ongoing Activity Project ProjectMonitoring Monitoring and Evaluation and Evaluation To be conducted
5.2 ORGANIZATION STRUCTURE
A Land Acquisition Committee will be formed to manage the compensation and livelihood restoration (LR) processes. The Livelihood Restoration Manager will head the Land Acquisition Committee. It is the responsibility of the Land Acquisition Committee to implement the processes and commitments detailed in this LRP, including the Grievance Procedure. The Land Acquisition Committee will monitor the implementation of all activities to ensure that this LRP is being implemented and that the outcomes are consistent with the objectives of the LRP.
Figure 5.2 presents organisation structure of the Land Acquisition Committee.
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Figure 5.2 Organisation Structure of Land Acquisition Committee
The Land Acquisition Committee will meet once a week for the first three months of the land acquisition process. After this period, it is advised that meetings are held on a monthly basis for an additional three months, and then quarterly depending on the effectiveness of implementation and the scale of outstanding land acquisition issues. A record of meetings and minutes should be prepared, held and distributed by the Project LRP Manager.
Detailed Roles and responsibilities of each party are presented in Table 5.1.
Table 5.1 Roles and Responsibilities of Land Acquisition Committee
Organisation No. Roles and Responsibilities Name 1 Seven Overall control of the implementation of LRP and grievance redress Energy/Accugas procedure Board of Directors/CEO 2 Land coordinating and overseeing the land acquisition and Acquisition compensation process and all those participating in it; Committee interfacing with the Project in relation to engineering options, the timing /phasing of the land acquisition and compensation process facilitating all consultation and engagement activities with affected communities; approving compensation entitlements with affected communities prior to disbursement; budget control and formulating and operating compensation disbursement mechanisms; approval of dispute resolution brought to the Committee through the Grievance Procedure; approval of support and assistance to vulnerable groups; facilitating livelihood restoration programmes to ensure that local needs are met; guiding the monitoring and evaluation process; and reporting to the Accugas Management Team.
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Organisation No. Roles and Responsibilities Name 3 Seven Energy overseeing and coordinating all land acquisition and livelihood Livelihood restoration (LR) activities; Restoration supervising all stakeholders (including Project staff, government Manager officials, contractors etc) who contribute to the process; reporting directly to the Project Management Team; chairing the Land Acquisition Committee; evaluating Land Acquisition Committee performance and providing constructive feedback.
4 Seven Energy coordinating and overseeing the project in the field; Livelihood ensuring information sharing between the land acquisition team Restoration and Project Management Team, as well as wider information Officer dissemination; and acting as the “face” of the land acquisition and LR processes, being perceived to be accessible and promoting trust and confidence as the “go-to” person for any land acquisition or LR-related issues and concerns.
5 Seven Energy Providing legal advice, producing all agreements and monitoring Legal Manager LR processes.
6 Seven Energy Accugas Corporate Social Responsibility Manager will be responsible Corporate Social for direct engagements with the community regarding land acquisition Responsibility and compensation, dealing with day-to-day community issues and for Manager facilitating the grievance redress procedure in each LGA. Key responsibilities include: recording grievances, both written and oral, from the affected people, categorising and prioritising them, and for resolving these within an agreed timeframe; reporting to the Land Acquisition Committee at each meeting on: i) the number of grievances received since the previous Land Acquisition Committee Meeting; ii) the number resolved since the previous Land Acquisition Committee Meeting; and iii) The number of grievances unresolved after 14 days that require intervention by the Land Acquisition Committee . informing the RAP Manager of any serious issues (eg security issues, known or suspected corruption); and maintaining contact with the aggrieved parties about developments regarding their grievances and the decisions of the Land Acquisition Committee.
7 Seven Financial reviewing LRP cost and budget; Representative signing off LRP payment for compensation and livelihood restoration; supervising project compensation disbursement compliance; and Reviewing and signing off grievance redress measures.
8 Government reviewing and commenting on the Project LRP; representatives supervising project compensation; and supporting project livelihood restoration measures,
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Organisation No. Roles and Responsibilities Name 9 Non- The NGO will be selected by Accugas and will act as an impartial third governmental party to facilitate the land acquisition and compensation process. Key organisation responsibilities include: (NGO) providing impartiality to the land acquisition and compensation processes of disclosure, signature of compensation agreements and compensation disbursement. supporting the development of project livelihood restoration measures based on the knowledge of local socioeconomic conditions; dispute resolution through the Grievance Procedures; and Supporting internal and/or monitoring and evaluation.
5.3 LRP HANDOVER
Handover of the LRP will be crucial to the effective delivery of the land acquisition and livelihood restoration process. LRP Handover Training will need to be provided to all members of the Land Acquisition Committee in order to ensure that they fully understand the measures committed to in the LRP, as well as the institutional setup and roles and responsibilities of all of the stakeholders involved in the process.
5.4 GRIEVANCE MECHANISM
5.4.1 Potential Grievances and Disputes
The grievance redress procedure provides a mechanism to mediate conflict and cut down on lengthy litigation, which often causes delays in infrastructure projects. There is the possibility that grievances and disputes may arise during land acquisition and compensation, resulting from the following: Disputes or errors made during surveying, census and valuation of assets; Disputes or errors related to identification of land boundaries; Disputes or errors related to land ownership and asset valuation; Family issues resulting in ownership or share disputes; Disputed ownership of assets by different individuals; Delays in disbursement of compensation or assistance; and Community complaints or claims for compensation in relation to pipeline construction.
5.4.2 Procedure for Grievance Redress
The Grievance Procedure is shown in Figure 5.3.
ACCUGAS LIMITED JANUARY 2015 39 Seven
Figure 5.3 Seven Energy Grievance Redress Procedure
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6 PARTICIPATION AND CONSULTAITON
6.1 INTRODUCTION
6.1.1 Objectives
The objectives of consultation with affected communities are to: Inform affected persons about the project and how it will affect them (1). Identify the interests, concerns and needs of affected persons. Seek input from affected persons in the planning process (e.g. regarding preferred compensation options and livelihood restoration). Provide feedback to affected persons on how their concerns and needs have been addressed in the land acquisition and livelihood restoration (LR) planning process.
6.1.2 Stakeholder Identification
The main stakeholders in the land acquisition process include: Village organisations, including village chief, village council, youth group, and women’s group. Project affected communities and persons in the following categories: o Those to be affected by permanent land acquisition within the 25m pipeline corridor; and 6.1.3 Methodology
Consultation with PAPs is conducted via the following mechanisms: Step 1: Community pre-entry notification; Step 2: Town hall meetings and focus group discussions at the village level; Step 3: Consultation during LRP surveys; Step 4: LRP disclosure; Step 5: Disclosure of survey data; Step 6: Orientation of PAPs; Step 7: Compensation agreement and disbursement; and Step 8: Grievance redress.
Major activities of each step are described in Table 6.1.
Table 6.1 Participation and Consultation Methodology
Step # Name Activity
Step 1 Pre-entry Notification A Project Briefing Letter is written to the Village Head of affected villages and copied to the Village Council, Youth Union, and Women Union. Four letters in total for each village. A date for the proposed village town-hall meeting will be specified in this letter (normally within seven days).
(1) IFC’s Performance Standard 5 requires that individuals and communities directly affected by land acquisition and resettlement should have the opportunity to participate in the negotiation of compensation packages and consultations regarding eligibility requirements, resettlement assistance, suitability of resettlement sites and the timing of resettlement activities. ACCUGAS LIMITED JANUARY 2015 41
Step # Name Activity
Step 2 Village Town-hall Introduce the project to all village members; Meeting Explain the need for and extent of permanent land occupation by the Project. Brief community on the purpose of LRP field surveys; Agree on a date to carry out the detailed LRP surveys (normally within three days); and Conduct village mapping, profiling and consultation through structured interviews, focus group discussions and site reconnaissance investigations.
Step 3 LRP Survey Conduct face to face household socio-economic surveys; Conduct land survey, census and asset inventory; and Collect interests, concerns and suggestions of affected persons.
Step 4 LRP Disclosure Publicize draft LRP to the affected community; and Collect interests, concerns and suggestions from affected persons.
Step 5 Supplementary Survey Conduct verification survey if questions on the survey of Unregistered Assets results are raised including claims for unregistered assets or losses.
Step 6 Orientation of PAPs Provide financial advice to PAPs, including information on risks (theft, fraud), options for securing funds (e.g. use of bank accounts), sensible expenditure (purchase of seeds, fertilizers, agrochemicals) and opportunities for investment (real estate, trade, agriculture).
Step 7 Compensation Sign compensation agreement with affected communities agreement and and households payment Pay compensation to the affected communities and households based on compensation; and Conduct livelihood restoration measures as agreed with the communities. Step 8 Grievance Redressing Collect, record, administrate and redress grievances raised from the affected communities throughout the entire land acquisition and LR process.
6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE
Consultation with the affected communities that were carried out during the LRP process are summarised in Table 6.2.
Table 6.2 Consultation Activity Conducted to Date (Oron to Creek Town)
Major Concerns / Suggestions Date Major Task Raised by the Affected Community 6-11 November 2014 Scoping to identify project affected Limited project information has community and confirm the necessity of been disseminated to the affected physical displacement. community.
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Major Concerns / Suggestions Date Major Task Raised by the Affected Community 12-14 November 2014 LRP Pilot Survey to test survey Formal village pre-entry methodology and materials in the target processes are required prior to village. the LRP survey. There has been no government process of publicising survey results to affected community.
16 – 19 November2014 Right of Way (ROW) mapping and mark Boundaries of most the affected up to demarcate pipeline ROW and villages were difficult to locate in confirm the extent of the affected view of the swampy terrain. community.
20-22 November 2014 Distribution of village pre-entry letters. Agree on village town-hall meeting date.
23 -24 November 2014 Conduct village town-hall meetings, Nil. village mapping and focus group discussions.
24 November – 7th Conduct LRP survey including Affected communities expressed December 2014 household socio-economic survey, land interest in knowing the exact survey, census and asset inventory. compensation entitlement and rates.
20 -30th January 2014 Disclosure of LRP, project land - acquisition and livelihood restoration strategies were disclosed to PAPs through town hall meetings, including policies, entitlement, compensation rates and implementation plan.
Figure 6.1 presents some photos from the consultation process. Sampled attendant lists of community meetings are presented in Annex C.
Figure 6.1 Community Consultation and Participation, November-December 2014 and February 2015
Focus Group Discussion with Women in Esin Ufot Focus Group Discussion with Men in Esin Ufot
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Sensitization meeting Usung communities Women of Idua Afaha Eduok after Consultation Meeting
Idung Asua Village Town Hall Meeting Meeting Eyobasi Village
Disclosure Town Hall Meeting in Creek Town Disclosure Town Hall Meeting in Creek Town
Disclosure Town Hall Meeting in Udung Uko Disclosure Town Hall Meeting in Udung Uko
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6.2.1 Concerns of PAPs
Concerns collected during the consultation process are grouped into three categories: Concerns over compensation and payment disbursement; and Environmental, health and safety (EHS) concerns over project construction/operational activities.
Concerns over Compensation and Payment Disbursement
PAPs want to know the exact compensation entitlements and rates, and when the payments will be made. Compensation for shrines should include the ceremonies for the appeasement of deities. PAPs feared that Accugas might use more land beyond the specified 25m ROW corridor. They complained that another operator created confusion and distrust between the communities in the area which resulted in intercommunal.
Expectations on Livelihood Restoration
PAPs expected some local employment of labour during pipeline construction. The youth expressed that they wanted technical training in pipeline welding to enable them acquire employable skills. Fishing communities (camps) feared that Accugas activities would damage their livelihood activities by silting fishing sites and blockage of the waterway with construction equipment and barges, hence they want Accugas to manage the construction phase to prevent blockage/obstruction of the waterway and to minimise siltation and provide fishing communities with alternative livelihood options if the construction cause physical impact to the swamps and water.
EHS Concerns over Project Construction and Operational Activities
PAPs raised concerns on how Seven Energy/Accugas intended to dispose the waste, tree, stumps and silt generated during the pipeline processing. PAPs were concerned about long term plan for maintenance of the pipeline in order to avoid leakages and fire. Community concerns directly related to the land acquisition and livelihood restoration process are incorporated into the project compensation and livelihood planning and those related to EHS issues will be treated as community grievances.
6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING
Through the LRP consultation process, the LRP Project Team was able to refine the land acquisition planning details to address the concerns of local residents, including: Refine the project information disclosure and consultation process by incorporation of an additional process of village pre-entry sensitization (1). Inclusion of the public disclosure of survey results into the LRP process so that the affected community can verify the survey results and minimise the potential for misunderstanding. In addition to the disclosure of survey results, project compensation rates, entitlement, timing and procedures of payment disbursement will be disclosed to PAPs prior to signature of compensation agreement. Project construction activities will be confined in the project ROW. Any land/water use beyond the ROW will be recorded, surveyed and compensated in line with requirements/procedures defined in this LRP report. Ceremony cost of the shrine is included into the compensation entitlement. The project will pay compensation for communal assets directly to village leadership who will in turn manage the compensation monies on behalf of the various communities. The project has developed and will implement a preferential employment policy for using local labours during the pipeline construction.
(1) Sensitization activities include introduction of the entry purpose, paying respects to the village head, village organisations and villagers and obtain preliminary consent for formal entry by subsequent consultation/survey activities. ACCUGAS LIMITED JANUARY 2015 45
According to IFC PS5, some suggestions on livelihood restoration such as job training are not strictly within project obligations for the land acquisition and compensation; however the project may include those into MOU to benefit local communities. Project related EHS concerns will be addressed by Seven HSE department outside of the LRP process.
6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN
Future participation and consultation that are required during LRP implementation are summarised in Table 6.3.
Table 6.3 Future Participation and Consultation Plan
Date Activity Expected Outcome
November – Seven Energy to pay formal village To pave the way for access to December 2014 pre-entry visits to affected negotiate land use and communities. compensation agreements.
February 2015 Accugas to conduct supplementary To verify that survey results are survey of any unrecorded assets accurate.
February 2015 Accugas to conduct orientation To enable the smooth process of courses for PAPs to train them on compensation payment. financial management. February- March Signing compensation Compensation agreements 2015 agreements with affected with affected households and households and villages. The villages. survey form and entitlement Compensation disbursement matrix will form an annex to the to affected communities. contract to verify the amount for compensation. Pay compensation to the affected households and villages at the agreed rates. Land access for pipeline installation may commence upon compensation disbursement.
February–April Implement livelihood restoration Restore income of PAPs 2015 measures April - June 2015 Monthly LRP implementation Monitor the land acquisition monitoring. progress and outcomes and to propose corrective actions if necessary.
May –December Conduct bi-monthly LRP Monitor the land acquisition 2015 implementation monitoring. progress and outcomes and to propose corrective actions if necessary.
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Date Activity Expected Outcome
July 2015 Conduct LRP implementation M&E. Monitor and evaluate the outcomes of the LR plan and propose corrective actions if necessary.
February 2016 Conduct Completion Audit. To close out the Projects responsibilities to affected persons and communities under the LRP and to conclude the land acquisition process.
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7 COMPENSATION AND INCOME RESTORATION
7.1 INTRODUCTION
The Project compensation entitlements have been developed based on the project land acquisition principles (refer to Section 4.5) in accordance with the requirements of local Nigerian Law.
7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA
7.2.1 Nigerian Legal Requirements
Local legislation delineates two forms of land rights: (i) statutory rights of occupancy; and (ii) customary rights of occupancy, which recognises that both these rights of occupancy can be held either by individuals or communities. In other words, both statutory rights of occupancy and customary rights of occupancy are recognised, but no individual, household or community has the right to own the land that they occupy. Accordingly, when this land is subject to removal for “overriding public interest”, compensation is not required for the loss of the land itself, but rather only for “unexhausted improvements” made to the land. In addition, other forms of land occupancy, such as encroachment, are not at all recognised under local legislation, and thus when encroached land is removed for overriding public interest, no compensation is provided to the encroacher.
7.2.2 International Standards
IFC PS5 provides broader eligibility and entitlement criteria than those under Nigerian legislation. Firstly, statutory and customary rights of occupancy are understood as ownership rights for the purposes of compensation. In other words, the absence of statutory or customary ownership rights is not in itself a bar to the provision of compensation for loss of land, assuming that some form of occupancy right is held for the land. In addition, under PS 5, and unlike under local legislation, encroachers, “squatters” or people who are residing on or otherwise using or occupying land in violation of local or national laws are also deemed as eligible groups in the context of eligibility for compensation. They are not entitled to compensation for the loss of the land itself, but they are entitled to compensation for any improvements made to that land, as well as assistance if they occupied the ROW prior to the established cut-off date.
7.2.3 Summary
Table 7.1 provides a summary of the differences in eligibility and entitlement criteria between local legislation, and IFC PS 5.
Table 7.1 Comparison of Eligibility and Entitlement Criteria
Group Nigerian Legislation IFC PS5
Holder of a statutory right of Eligible for compensation as a Eligible for compensation as Occupancy land occupier but not as a land for land owners owner Holder of a customary right of Eligible for compensation as a Eligible for compensation as occupancy land occupier but not as a land for land owners owner Not eligible for compensation Eligible for compensation as Encroacher for land occupier but not as a land owner
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The Project has agreed to adhere to both local legislation and the more comprehensive eligibility and entitlement criteria of IFC PS5, as outlined in more detail in the following sections.
7.3 COMPENSATION REQUIREMENTS
7.3.1 Local Requirements
According to the Nigerian Land Act and Oil Pipeline Act, the owner and occupier are not entitled to compensation for the land itself, but rather only to compensation for improvements made to that land, i.e. the loss of land value.
For individually-held land, the compensation should be paid to the individual who holds the occupancy right. For communally-held (community) land, where occupancy rights are not claimed by any one individual, the recipient of the compensation may be: (a) the community; (b) the chief or leader of the community, to be disposed of by him for the benefit of the community in accordance with the applicable customary law; or (c) a community fund, to then be utilised for the benefit of the community.
For gas pipeline projects, the value of unexhausted improvements is compensated according to a schedule of rates issued by the Oil Producers Trade Section (OPTS). The OPTS was developed in the wake of differences in the rates applied by the States within the South-South Geopolitical Zone and other oil producing states of Nigeria (comprising Akwa Ibom, Baylesa, Cross River, Delta, Edo, Imo, Ondo and River States). The objective of applying OPTS rate is to harmonise compensation rates for these areas, even though some of the States have gone ahead to review their internal rates. The latest OPTS compensation rates were those published in 2003.
Two years of OPTS rates were developed; Akwa Ibom State updated its compensation rates for land acquisition in January 1st 2005, probably to meet its own internal objectives of land governance.
The above compensation provisions (a) take depreciation into account; and (b) do not employ market rates as a basis for compensation, therefore are lower than those required by IFC PS 5, as outlined below.
7.3.2 International Requirements
IFC PS 5 requires the following:
Compensation for loss of land. For those holding customary rights of land occupancy, the provision of compensation for improvements made to the land should be supplemented by the provision of compensation for the loss of land itself.
Full replacement cost. The principle of full replacement cost should be adhered to in assessing and compensating for loss of land and assets. This principle can be defined as the market value of the land /assets plus transaction costs. When employing this method of valuation, depreciation should not be taken into account.
Income restoration measures: if land-for-land compensation is not available, alternative income earning opportunities may be provided, such as credit facilities, training, cash, or employment opportunities.
7.3.3 Project Approach to Compensation
Compensation for Permanent Land Acquisition
For permanent land acquisition, compensation for the land will be paid at full replacement cost. For cultivated land, this includes: Market value of the land; Improvements to the land as defined by Nigerian law; Clearance allowance to prepare the land for farming; and
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Transitional support for loss of income during the period before replacement land is available. This is to be calculated based on an estimate of a reasonable time required to restore income earning capacity, productivity levels and associated livelihoods.
Visual assessment and village consultation prove land is available within the local area, the cash compensation will allow affected communities to source alternative swamp area for fishing and other during the one year construction period when this section of the swamp may not be available for fishing.
For non-cultivated land, compensation will be paid at the market value of the land only. The entire ROW is a non – cultivated land; therefore compensation for cultivated land does not apply to this project.
Compensation Rate for Assets
The Project will adopt the highest compensation rates among Akwa Ibom State government rates, OPTS rates and market prices for each affected asset. The compensation rates will be applied consistently across the four LGAs.
Physical and Cultural Property
Cultural property that will be affected by the Project includes sacred forest and shrines. Wherever possible, disturbance to sacred sites will be avoided. It is likely however, that shrines will need to be relocated before pipeline construction commences. In these cases, cash compensation will be paid to the communities are to conduct required ceremonies to move the shrines. In addition, a cash amount to cover physical relocation costs of the shrines will be provided. Construction will not commence until these ceremonies have been completed.
Compensation for Water Bodies
Cash compensation will be provided for: 1) Unmovable fishing traps and nets at market value; and 2) Transitional allowance for loss of income from swamps. It must be noted that no fishing trap where encountered during the asset valuation survey.
Vulnerable Groups
Particular attention is being given to the needs of vulnerable groups in the context of compensation. Based on consultation with those households identified as vulnerable, an appropriate additional transitional allowance will be determined, and distributed to these households, in monthly instalments, over a six month period.
Claims for assistance for vulnerable groups will be approved by the Land Acquisition Committee.
7.3.4 Valuation Method
The valuation process is as follows: Each class of tree type was counted individually. Photographs of the claimant (Communal Representative) taken. The GPS coordinates of each asset were recorded. All survey data was recorded in individual Land/Asset Survey Sheets. Each Sheet was then individually endorsed by the relevant claimant and the surveyor. This endorsement was witnessed by the Chief Representatives.
To ascertain the current market value of crops and trees, the “investment” approach was used. This method involves the determination of the opportunity cost of the rights of the claimants to the incomes from the communal swamp/rivers throughout the land acquisition period. To arrive at the rates for each of the identified assets, the following process was followed:
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Establish the market price of the product. Establish the market costs of seedlings and add this to the total loss. Multiply the resulting total by the number of crops / trees assessed for each claimant.
The survey categorised each crop / tree into mature, immature and seedling. Mature were those that were about to or had started bearing fruits, while immature were those that had not started bearing fruits but were older than seedlings. These categories will then be subject to consideration as follows: Matured tree: 100% of the market value; Immature tree: 50% of the market value; and Seedling: 25% of the market value.
Added to these are transaction costs on land and disturbance allowances of $1,000.00 provided for each community/family ($1.00 – N180.00 exchange rate).
Supplementing the above values, the following entitlements will also be factored into the final compensation provisions as shown in Table 7.2.
Table 7.2 Compensation Provision
Rate / Unit Name Amount (N) Loss of Fishing/games 92/m2 The value of loss of rights to fishing is related Income (Fishing rights) to the opportunity cost of the potential losses that the community will incur for inability to use the assessed portions of the ROW for the construction period only. In this case, we assumed a 12 month construction period.
It is envisaged that the affected communities Transaction Cost on 12% of cost of might seek to procure alternative lands of Swamp/River. Land/Swamp equal utility with the one being acquired for the ROW. Transitional Support for Loss of fishing yield from the swamps/river Loss of Income from 180,000 within 1 year. Swamp/river
7.4 LIVELIHOOD RESTORATION STRATEGIES
Given the demand from communities for livelihood restoration (see Section 6.2.1), the Project will endeavour to restore, and preferably improve, the income earning capacity of communities persons.
Specific livelihood restoration strategies are to be determined in consultation with affected people. These will include the following:
Land-based schemes to improve agricultural income. An intensive agricultural development programme including: (i) the provision of crop seeds or tree seedlings to PAPs for free; and (ii) the provision of training (perhaps through the employment of an Agricultural Extension Officer) to enhance farming skills and to encourage the use of innovative farming methods. Other key forms of support will focus on agricultural intensification, better storage techniques and adding value to agricultural produce. Wage-based schemes. The immediate opportunities that can be provided by Accugas include unskilled labour required for pipeline construction. This will require coordination with the pipeline installation contractor. The Project will also ensure that local expectations about Project employment are carefully managed and not raised to an unrealistic level. Community transportation infrastructure schemes. Small business in trading of fish and sea food accounts for approximately 29% of local income. The improvement of road access will assist income and livelihood restoration. The Project will address transportation infrastructure needs for local communities, including improvements to roads and access to
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water. Coordination with the pipeline construction contractor will be important to ensure that the road network is improved upon as most of the village road are in terrible state.
Particular attention will be given to meeting the livelihood restoration needs of vulnerable households. In particular, these households will be prioritized in relation to the provision of: (i) skills training; and (ii) Project employment.
The livelihood restoration compensation for each village will be calculated based on the compensation to transitional allowance for loss of income resulted from loss of land/water within the ROW as shown in Table 7.2. Livelihood restoration will not be paid cash but by carrying out livelihood restoration measures as describe above for each village/community. Since the entire swamp and water of the ROW is communal land, the livelihood restoration measures will cover the entire population of the community.
In addition to the above, the Project is considering wider community development provisions to the broader community through Village MoUs.
Entitlement Matrix The entitlement matrix for the Project is presented in Table 7.3. Templates of compensation matrices for community and affected communities are presented in Annex C.
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Table 7.3 Entitlement Matrix
Nigerian Government Affected People Type of Loss Compensation Project Entitlement Eligible Group Category Provision Land Permanent No compensation for Compensation of land at market value, N180/m2. Land owner (Swamp/Water) Acquisition of the loss of land itself (Community) occupier 25m ROW (customary right of land occupancy) Crop/tree Standing Cash value of the Cash compensation paid at the higher value of: i) market price, ii) Government rates; Crop/tree owner cultivator crops/trees standing crops and and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. ( Community) trees, as per government or OPTS rates.
Asset Owner Structures and Cash value of the asset, Cash compensation paid at the higher value of: i) market price, ii) Government rates; Community asset as per government or and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. OPTS rates.
Shrine Owner Cultural Cash value of the Cash compensation will be paid at full replacement value, including cost for Community Property (i.e. shrine, as per the ceremonies and relocation, N60,000 for personal shrines, N180,000 for family shrines shrines) government or OPTS and N1,440,000.00 rates Water User Water surface Cash value of 1) Transitional support for loss of income, N180,000, based on the anticipated loss of Community/ User (incl. swamp) unmovable traps and fish yield from the swamps and water rental for 1year. nets only
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Nigerian Government Affected People Type of Loss Compensation Project Entitlement Eligible Group Category Provision
Communal Cash value of the asset, Cash compensation paid at the higher value of: i) market price, Government rates; and Community asset, crops and as per the government iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. trees or OPTS rates.
Communal Cash value of the Cash compensation will be paid at full replacement value, including cost for Community Cultural shrine, as per the ceremonies and relocation, N 1,440,000 per unit for village shrines. Property (i.e. government or OPTS shrines) rates Water surface Cash value of 1) Cash compensation for unmovable traps and nets based on market value, N50,000 Community (incl. swamp) unmovable traps and per unit. nets only 2) Transitional support for loss of income, N92/m2, based on the anticipated loss of fish yield from the swamps and water rental.
All Loss of income None Livelihood restoration measures include All affected 1. land-based schemes, including agricultural training, agricultural intensification, community better storage techniques and adding value to agricultural produce; members 2. Wage-based schemes to provide permanent or temporary employment opportunities to affected communities; and 3. Village infrastructure schemes to assist community access to better road.
Vulnerable 1) An appropriate additional transitional allowance will be provided to vulnerable Vulnerable groups groups households, in monthly instalments, over a six month period; and 2) Preferential provision of: (i) skills training; and (ii) Project employment.
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8 MONITORING AND EVALUATION
8.1 INTRODUCTION
The IFC PS5 require establishment of procedures to monitor and evaluate all land acquisition processes. To ensure that the land acquisition (including associated compensation and livelihood restoration) is carried out as planned, the process is subject to monitoring both internally and externally during the construction period of the project.
8.1.1 Objectives
The objectives of the Project’s land acquisition monitoring are as follows: To provide the Project with feedback on LRP implementation and to identify problems and successes as early as possible to allow the timely adjustment of implementation arrangements; and To enable the Project to demonstrate that the land acquisition process is being managed in line with the Project’s objectives and desired outcomes, as well as with the requirements of Project stakeholders.
In summary, LRP monitoring activities are integral to the success of the Project’s land acquisition process and will help to demonstrate this. These monitoring activities will be integrated into the overall Project management process.
8.2 MONITORING AND EVALUATION PLAN
Monitoring will be initiated at an early stage in the land acquisition process and will cover all affected communities. Monitoring and evaluation will continue for approximately 9months, however during this period, the intensity of the process will vary. For example, before and immediately after the actual Project land take, monitoring and evaluation will be fairly intense. As the LRP implementation progresses the frequency of the monitoring and evaluation will reduce.
The Project’s monitoring and evaluation plan will have two key components; namely: Progress monitoring; and Outcome evaluation.
There will be both internal and external monitoring of the LRP implementation, as follows: Internal monitoring: consisting of progress monitoring and outcome evaluation, undertaken by the Project; and External monitoring: of progress and outcome evaluation that will be carried out by a third party. This will include a completion audit.
8.2.1 Progress Monitoring
Progress monitoring allows the Project to track progress against milestones established in the LRP. Progress will be reported against the implementation schedule of required actions shown in Table 9.1.
The LRP Manager and RAP Officer will report monthly on the progress of activities in Table 9.1 and action plans identified in each monitoring report. During land acquisition and pipeline construction, the monitoring will focus on negotiating agreements, compensation payments, transitional assistance and assistance to vulnerable groups. Monitoring of information disclosure, consultation and grievance redress will be ongoing throughout the Project up until the completion audit.
The LRP manager will report on the disbursement of compensation against valid entitlement matrices within the defined timetable. A minimum sample of 30% of payment records will be inspected to verify that compensation has been made in full and in a timely manner, ie prior to land access. The CSR manager will identify any delayed inputs and reasons for the delay, and work with action owners to schedule for action completion (e.g. shifting action to next monitoring period).
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8.2.2 Outcome Evaluation
Outcome evaluation, like progress monitoring, is an internal Project task. It gauges the effectiveness of the LRP and its implementation in meeting the stated objectives of the Project, ie to compensate for loss of assets at full replacement cost and to ensure that incomes have not been negatively affected.
The effects of the LRP will be measured against the baseline conditions of the affected communities prior to land acquisition. Objective verifiable indicators will be established for measuring the impact of land acquisition on the socio-economic welfare of the affected people and the effectiveness of livelihood restoration measures.
The Project’s evaluation indicators will include: household income; agricultural output; and
Failure to achieve the desired outcome targets will indicate the need to determine the cause and whether the measure or delivery methods should be changed.
Outcome evaluation monitoring will be based upon sample surveys of the affected communities and will continue until a completion audit is complete.
8.2.3 External Monitoring and Completion Audit
An external monitor will be appointed to verify internal monitoring and evaluation processes and to evaluate livelihood restoration outcomes. The external monitor may conduct monitoring and evaluation against the progress and outcome indicators developed by the Project, or other indicators selected independently. The external monitor will undertake monitoring and evaluation through review of the socio- economic surveys undertaken during LRP preparation and consultation with Project staff, affected persons, community representatives and other stakeholders as necessary. The External Monitor will make recommendations for improving land acquisition processes and procedures, as well as indicators for monitoring outcomes, where appropriate.
The External Monitor will conduct the following monitoring and evaluation activities:
Review of internal monitoring reports to verify whether they are being undertaken in compliance with the LRP. Review grievance records for compliance with the Grievance Redress Procedure; Interview land acquisition and LR staff, a cross section of affected households, community leaders and other key informants, to ascertain the effectiveness of resettlement-related activities and the extent to which living standards and livelihoods are restored or enhanced as result of the land acquisition process. Assess overall compliance of the land acquisition and compensation process with the Project LRP, Nigerian laws and regulations and IFC PS5 (2012).
A completion audit will be conducted by a third party monitor, who is yet to be decided, upon the completion of pipeline installation and all associated measures in this LRP. The completion audit will involve a final outcome evaluation on completion of the LRP implementation, likely to be in end 2015/ early 2016. The completion audit will verify: (a) that all LRP inputs committed to have been delivered and all services provided, and (b) efforts to restore the livelihoods of the affected population have been properly conceived and executed and have had the desired effect. A successful completion audit will bring to a close liability in the land acquisition process. If the completion audit demonstrates that livelihood restoration objectives have not yet been achieved, however, further action will be planned and implemented as appropriate.
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8.3 MONITORING AND EVALUATION ROLES AND RESPONSIBILITIES
The Project’s external monitoring and completion audit will be conducted by a third party, while the progress monitoring and outcome evaluation will be undertaken by Project staff, as outlined below.
The Livelihood Restoration Manager will lead the monitoring and evaluation process, supported by the CSR manager .
Specifically, the Livelihood Restoration Manager will be responsible for implementing the progress monitoring and outcome evaluation by: Proposing relevant progress milestones and outcome evaluation indicators; Directing the CSR Manager to collect necessary data to verify progress against Project milestones and outcome evaluation indicators; Recording data and other evidence; Evaluating outcomes of the basis of the data collected; and Proposing corrective or additional measures, if necessary.
The Livelihood Restoration Manager will maintain a monitoring database in which all relevant information will be entered, and will then be responsible for producing monitoring and evaluation reports for submission to the Land Acquisition Committee. These reports will form the basis upon which specific additional interventions and associated implementation plans (including deadlines, responsibilities and resource requirements) will be agreed by the Land Acquisition Committee and implemented by the Livelihood Restoration Manager. Such interventions and associated implementation plans will then be added to the monitoring database, for subsequent regular review.
8.4 SCHEDULE AND REPORTING
8.4.1 Internal Monitoring
The internal monitoring will be conducted as following: Monthly during the first three months of land acquisition and compensation between March and May 2015; Bi-monthly for the first half of 2015; and Six-monthly from June 2015 until the completion of the LRP.
The results of the internal monitoring will be reported by the Land Acquisition Committee to the Project Management Team include the following: Monthly Internal Monitoring Report during the first six months of implementation of land acquisition and compensation; Bi-monthly Internal Monitoring Report for the first half of 2013; and Six-monthly Internal Monitoring Report from the second half of 2013 until the completion of the LRP.
The monitoring reports will include qualitative assessment and quantitative data with emphasis on progress towards achieving the objectives of the land acquisition and associated activities.
8.4.2 External Monitoring
External monitoring will commence in the third quarter of 2015 and be conducted every six months until the completion of the LRP implementation (which is to be verified through a completion audit).
Six-monthly External Monitoring Reports will be prepared and submitted to the Land Acquisition Committee two weeks after each round of external monitoring.
8.4.3 Completion Audit
A completion audit will be conducted by an external monitor in 2015/16. The completion audit report will be submitted one month after the audit.
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8.5 OVERALL MONITORING SCHEDULE
Table 8.1 presents the proposed project monitoring plan.
Table 8.1 Tentative Monitoring Schedule
2015 2016 Task Organisation 6 7 8 9 10 111 12 1 2 3 4 5 6 7 8 9 10 1112 Internal Monitoring Accugas External Monitoring Third Party Completion Audit Third Party
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9 SCHEDULE OF IMPLEMENTATION
9.1 SCHEDULE OF IMPLEMENTATION
Table 9.1 an outlines implementation plans for land acquisition and associated activities.
Table 9.1 Land Acquisition and Livelihood Restoration Schedule
Task Responsibility 2015 Feb Mar Apr May Jun Sep Dec Disclose & consult on draft LRP Revise and finalise LRP Recruit NGO partner Community Consultation and Engagement Grievance Redressing Supplementary Survey Orientation of PAPs Plan livelihood restoration Draft household level entitlements Household level Sign off on Entitlements Compensation disbursement
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10 BUDGET
Total project compensation is estimated to be N 167,162,856.70 (USD 924 thousand), this amount will be paid in cash to the communities and those at various fishing camps. Details are shown in Table 10.1.
Table 10.1 Budget for Project Compensation
Compensation Item Unit Quantity Rates Amount (Naira) (Naira/Unit) Land Take Permanent Acquisition m2 570,113.25 180 102,620,385.00 Swamp/river 25m ROW Transitional allowance 45.00 180,000.00 8,100,000.00 for construction period Sum of one year Allowances Transaction Cost on 570,113 21.60 12,314,446.20 Land @ 12% of m2 Permanent Land take Cost Loss Right Over Water Sq.m 136,116.94 92.00 12,522,758.89 Swamp/River Surface Soft Wood Mature Unit 212. 7500.00 1,590,000.00 Economic Trees Nipa Palms Mature Unit 99,676 200.00 19,935,266.67 Personally Owned Unit. - 60,000 - Cultural Assets Family Owned Unit - 180,000 - Shrines Community Owned Unit 7 1,440,000 10,080,000.00 Subtotal 167,162,856.76 N 167,162,856.76 Grand Total (USD923,551,.70) @N181/USD
Costs not included in this estimate include the following: Costs associated with disclosure and verification of survey results; Cost of NGO involvement; Cost of government involvement in land acquisition and compensation; Monitoring and evaluation; and Management time.
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