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Due Diligence Report Project Number: 41509-013 August 2016

PNG: Rural Primary Health Services Delivery Project (Loan 2785 and Grant 0259)

Prepared by the Department of Health for the Asian Development Bank.

This due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgements as to the legal or other status of any territory or area.

Papua New Guinea Rural Primary Health Services Delivery Project DUE DILIGENCE REPORT Taul Community Health Post Site

AUGUST, 2016

INDEX

Executive Summary 3 Project and Community Health Post Description 5 Taul Community Health Post Site - Description and Area 7 Scope of Land Use/Purchase 8 Socioeconomic Information 9 Information Disclosure, Consultations and Participation 13 Grievance Redress Mechanism 15 Applicable Policies and Laws 16 Agreements on Land Use 17 Compensation and Benefits 19 Budget and Sources of Funds 20 Institutional Arrangements 20 Implementation Schedule 22 Monitoring and Reporting 22 Annex One: Site Plan 23 Annex Two: Land Survey 24 Annex Three: Land Investigation Report 25 Annex Four: Valuation Report 40 Annex Five: Voluntary Land Use Agreement 42 Annex Six: Certificate of Alienability 46 Annex Seven: Deed of Release 47 Annex Eight: Sale & Transfer of Land 49 Annex Nine: Third Party Verification of Land Acquisition Process 52

EXECUTIVE SUMMARY

The Turubu Rural Local Level Government area of Wewak District in East Sepik Province, in which Taul Village is situated, had a population of 11,727 at the time of the 2011 census. There were 101 males for every 100 females with an average of 5.5 persons per household. In 2010, the Provincial mortality rates were estimated to be 79/1000 for infants under one year and 115/1000 for children under five years of age. (National Research Institute Health Report, 2010).

The 2015 Health Sector Performance Annual Review (SPAR) records that only 58.35% of expectant mothers accessed antenatal care at a health facility in the Wewak District. The supervised delivery rate for the rural population is also well below the National target of 80% and probably reflects the poor access to health facilities within the Wewak District.

The 2015 SPAR also records that 10.73% of infants delivered in a health facility in the Wewak District had a birth weight of less than 2.5 kilograms and that 22.37% of children under the age of 5 years examined in Wewak District health facilities were suffering some level of malnutrition. Immunisation rates for measles amongst children less than 5 years of age were just 36.89% and pentavalent immunisation rates were 57.62% which are both well below the National target of 90%. In 2015 Wewak District health facilities only provided an average of 1.21 occasions of service per capita which is barely half of the National target of 2.4.

These very poor indicators of health care accessibility make a compelling case for the development of additional, more accessible health facilities within Wewak District.

The proposed Community Health Post at Taul will be classified as a Level 2 Health Facility under the PNG Natioal Health “eie “tadads, s ‘ole Delieatio Mati ad will be required to provide maternal, child and general primary health clinics.

Provision will be made for birthing and postnatal inpatient care, short term paediatric and adult inpatient services and for triage and stabilisation of critically ill patients prior to referral to higher level facilities. A modest Procedure Room is also provided to allow emergency care of trauma or serious medical conditions prior to referral. Discrete consultation rooms are provided to ensure privacy for clients seeking care or advice for their conditions.

The Taul Community Health Post will have five (5) inpatient beds and is expected to provide health services for up to forty-five (45) persons per day. The Community Health Post staff will also have a major role in health education and promotion in the area and will coordinate the activities of Village Health Volunteers working in the catchment area to generate demand for antenatal care, supervised deliveries, family planning and immunisation.

The site provided for the Community Health Post by the customary landowners is known officially as Kauaa No. (Portion 567C, Milinch of Muschu, Fourmil of Wewak and District of Wewak) and consists of 1.12 hectares of sloping coastal foreshore covered by indigenous growth interspersed with a few mature coconut trees and other fruit and nut bearing trees. There are no structural improvements on the site. The land is fronted by the main Wewak/Munjun Village Road and has now been cleared and levelled by the former landowners in anticipation of early commencement of construction.

The land was formerly owned by the Yangana Clan consisting of six (6) extended families totaling fifty-six (56) living members at the time that the Land Investigation Report was compiled on 30th January, 2015. The land was inherited by them from their forefathers.

The Land Investigation Report for the Kanumanar No. 1 site also records that the former owners derive their livelihood from subsistence farming, fishing, hunting and seasonal cash crop income and it affirms that they have retained ample land for gardens.

The landowning Yangana Clan members agreed initially to give their land voluntarily for the building of the Community Health Post. However, ultimately, permanent use of the land was obtained through negotiated purchase following the Land Act and the Rural Primary Health Service Delivery Pojets Lad Assesset Faeok LAF). This is in accordance with GoPNG policy that all new State infrastructure should be built on State land.

Kanumanar No. 1 was acquired by the State only after extensive consultation with the customary landowners and other community members confirmed through a Memorandum of Agreement. The Deed of Release and the Sale & Transfer of Land documents were signed and the land formally acquired through purchase by the Wewak District Development Authority on behalf of the State on 16th August, 2016 at a cost of K53,400.00.

Following completion, the land acquisition process has been reviewed and verified by an independent third party consultant contracted by the PSU for this purpose. She has provided verification that (i) the local community and landowners support the Community Health Post construction and have agreed to provide their land; (ii) consultations and negotiations with landowners have been undertaken meaningfully, freely and in good faith and the landowners have made informed decisions on use of the land, and (iii) terms and conditions of the agreements have been explained, understood and agreed to by the landowners. A copy of the verification evidence is provided in Annex 9.

A. PROJECT AND COMMUNITY HEALTH POST DESCRIPTION

Background

1. The Rural Primary Health Services Delivery Project will strengthen the rural health system in PNG by increasing the coverage and quality of primary health care in partnership with State and non-State service providers to support the Government of PNG to implement the National Health Plan as it relates to rural health. The Project covers two (2) Districts in each of the following eight (8) Provinces selected by the Government of PNG: Eastern Highlands, East Sepik, Enga, Milne Bay, Western Highlands, West New Britain, Morobe and the Autonomous Region of Bougainville.

2. The Project will make improvements in both the supply and demand sides, and strengthen the policy and legal framework for health services at all levels. There are six outputs:

Output 1 – National policies and standards. Assisting the National Department of Health (National Department of Health) to develop policies, standards, and strategies for new Community Health Posts, and human resource strengthening of the rural health sector. This will result in the development of provincial health service plans, and improvements in the health information systems.

Output 2 – Sustainable partnerships between Provincial governments and non-State actors. Partnership Committees have been established to improve coordination and efficiency among providers, (churches and NGOs) and to increase consistency and accountability

Output 3 – Human resource development in the health sector. The Project will increase the skills of health personnel in rural communities, focusing on the existing workforce. It will help Provinces to address performance and retention issues.

Output 4 – Community health facility upgrading. The Project will build 32 new Community Health Posts with 96 staff houses as well as providing medical equipment and small vehicles (cars, boats, or motorbikes). It will also provide sanitation facilities, waste management facilities and establish renewable energy supplies for those health facilities

Output 5 – Health promotion in local communities. The Project will support village health olutees ad iease oes ioleet ad ouit egageet i delieig health seies ased o the health islads faework.

Output 6 - Project monitoring, evaluation and management. The Project has established a Project Support Unit (PSU) as part of the National Department of Health which will be used as part of its health system strengthening activities.

3. East Sepik Provincial Health Office has nominated Taul in Wewak District as one of the sites to construct a new Community Health Post under Output 4 of the Project. Sites selected by the Provinces were required to satisfy the following criteria:

(i) the facility is located in a participating Province and District and is in a predominantly rural area;

(ii) the proposed works have been identified and designed by the relevant implementing agency in a participatory manner with input from the community;

(iii) community consultation for selection of the site has been conducted;

(iv) the proposed works are integrated into a comprehensive Provincial Health Plan;

(v) the proposed facility/site has available/earmarked budget for recurrent costs in the health function grant;

(vi) the proposed facility/site has sufficient human resources/staff and supervision capacity;

(vii) institutional and financial arrangements for construction, operation and maintenance of the facility and access to the facility have been agreed upon by the Provincial Administration;

(viii) the proposed works comply with all requirements of relevant National laws and regulations and ADB's Safeguard Policy Statement (2009) and the Environment Management Plan, Environment Assessment and Review Framework, and Land Assessment Framework;

(ix) the State has clear and unencumbered title to the associated land portion on which the Community Health Post is to be located, without claims of third parties, and the Province has supplied adequate written confirmation of the same from the relevant authorities and community participants, as applicable, including the relevant Deed of Release and other title documentation; and

(x) access to and from the site and proposed facility for vehicles or other means of transport to the site will already be in place or will be constructed in parallel with the project and at the expense of non-project funds.

4. Within each participating Province, the Districts to participate in the Project were required to satisfy the following criteria:

(i) The District is selected with a view to maximizing the delivery of health services for rural populations that are most underserved at the outset of the Project measured as such by the percentage of the population having access to health facilities within 2 hours traveling time.

(ii) The District is selected with due consideration for the ability to absorb and utilize the proposed investment of resources, taking into account levels of security, law and order, governance, and administrative capacity.

5. Each of the sites chosen for the construction of a new Community Health Post usually requires less than one hectare of land to accommodate the health facilit ad thee staff houses. The pojets impact is limited to partial loss of land and, at Taul, fruit and nut bearing trees. The landowners and local communities are expected to benefit from improved access to health services and short-term employment opportunities from infrastructure construction and maintenance. The acquisition of small plots of land for the Community Health Posts is based on the laws, regulations, and policies of the PNG Goeet ad the ADBs “afeguad Poli Statement (2009). The Project will not finance Community Health Posts that involve compulsory land acquisition and/or involuntary resettlement impacts. The project is building on State land or church leased land and preferably on land where there has been an aid post previously. In the case of Taul, the development will be on a greenfield site.

B. TAUL COMMUNITY HEALTH POST: DESCRIPTION AND AREA

Provision is also made for birthing and postnatal inpatient care, short term paediatric and adult inpatient services and for triage and stabilisation of critically ill patients prior to referral to higher level facilities. A modest Procedure Room is also provided to allow emergency care of trauma or serious medical conditions prior to referral. Discrete consultation rooms are provided to ensure privacy for clients seeking care or advice for their conditions.

6. The site provided for the Community Health Post by the customary owners is known officially as Kanumanar No. 1 (Portion 567C, Milinch of Muschu, Fourmil of Wewak and District of Wewak) and consists of 1.12 hectares of sloping coastal plain covered in indigenous growth and interspersed with a few mature coconut trees and other fruit and nut bearing trees. There are no structural improvements on the site. The land is fronted by the main Wewak/Munjun Village Road.

Image 1: CHP Site at Taul prior to clearing.

7. The land was cleared by local landowners with financial support from the local Member once the valuation was established and the former owners had received compensation from the District Development Authority.

Image 2: Taul CHP site following clearing by local landowners in preparation for construction.

C. SCOPE OF LAND USE/PURCHASE

8. The land was formerly owned by the Yangana Clan consisting of six (6) extended families totaling fifty-six (56) living members at the time that the Land Investigation Report was compiled on 30th January, 2015. The land was inherited by them from their forefathers. The six extended families are Bonop, Marewa, Narik, Malop, Nai and Bill. The Land Investigating Officer affirms that they have retained ample land for gardens.

9. The Elders nominated Mr. Teddy Bonop, Mr Joe Diafa, Mr. Peter Diafa, Mr. David Milik, Mr. Lucas Wusim and Ms. Conny Kukuman of Yangana Clan to e ou epesetaties ad agets fo the purpose of executing a transfer to the Administrator over that piece of land known as Kanumanar containing 1.12 hectares and situated at Taul Village in the District of Wewak, Province of East Sepik and we do authorise the our agents to accept on behalf, all moneys and considerations paid by the said Adiistato i oetio ith the poposed tasfe of the said piee of lad.

10. All nominations were made on 30th January, 2015 at the time of compilation of the Land Investigation Report.

11. Mr. Benjamin Moeng spelled Moig elsehee i the Lad Iestigatio ‘epot, Mr Alfred Boromat, Mr. Daniel Pakom and Mr. Vincent Yamang, owners of contiguous land, declared that, to the best of their knowledge, the Yangana Clan are the true owners of the land known as Kanumanar ad that the, as oes of eighouig lad, akoledge thei sole ights atie usto to dispose of that lad.

12. Apart from minor disturbances to the environment during construction, there are unlikely to be any adverse socio-economic impacts on the affected households and they will benefit from the land payments made for the purchase of clan land.

13. The land was formally acquired through purchase by the Wewak District Development Authority on behalf of the State on 16th August, 2016 at a cost of K53,400.00.

D. SOCIOECONOMIC INFORMATION

The following maps of East Sepik Province are derived from the PNG Rural Development Handbook of 2001 developed by LW Hansen, BJ Allen, RM Bourke and TJ McCarthy and published by the Land Management Group, Department of Human Geography of the Australian National University. The depiction of occupied and unoccupied lands remains accurate and clearly indicates the concentration of the population in the arable valleys and on the coastal strip of the Province. Income levels and access to services have not improved significantly since the time of publication.

14. East Sepik Province has a population of 433,380 (2011 census) with population densities varying greatly across the Province. The Wewak District is sparsely populated with densities of 1 to 20 persons per square kilometre in the Taul area. The population of the Wewak District was 87,761 at the time of the 2011 Census.

15. The Turubu Rural Local Level Government area in which Taul is situated had a population of 11,727 at the time of the 2011 census. There were 101 males for every 100 females with an average of 5.5 persons per household.

16. The Land Investigation Report for the Kanumanar site records that the former owners derive their livelihood from subsistence farming, fishing, hunting and seasonal cash crop income.

Image 3: Map of East Sepik Province

TAUL

17. The Province has six Districts, 26 Local Level Governments (LLGs), and 647 wards. Its population is served by the Provincial General Hospital in Wewak, three District Hospitals, 37 health centres and aid posts. Ma of the Poies Aid Posts ae losed due to their poor condition and the inability to attract and retain health workers in such difficult working conditions. The health needs of the population of the Turubu Rural LLG are served by four (4) Aid Posts. Acute and complex care is provided fro the Boa Poiial Geeal Hospital hih is oall aout 4 iutes taellig time from Taul but the trip can take up to two (2) hours during the wet season when the road condition deteriorates badly.

18. In 2010, the Provincial mortality rates were estimated to be 79/1000 for infants under one year and 115/1000 for children under five years of age. (National Research Institute Health Report, 2010).

19. The presence of the Boram Provincial General Hospital in the District distorts the health indicators for the District as hospital services provided to residents of other Districts are unable to be disaggregated. The 2015 Health Sector Performance Annual Review (SPAR) records that 58.35% of expectant mothers accessed antenatal care at a health facility in the Wewak District. The supervised delivery rate for the rural population is well below the National target of 80% and probably reflects the poor access to health facilities within the Wewak District.

20. The 2015 SPAR also records that 10.73% of infants delivered in a health facility in 2015 in the Wewak District had a birth weight of less than 2.5 kilograms and that 22.37% of children under the age of 5 years examined in Wewak District health facilities were suffering some level of malnutrition. Immunisation rates for measles amongst children less than 5 years of age were just 36.89% and pentavalent immunisation rates were 57.62% which are both well below the National target of 90%.

21. Despite the presence of the Boram Provincial General Hospital within the District with its Specialist Medical Officers, extensive Oral Health Services and sophisticated Diagnostic Services the Wewak District health facilities only provided an average of 1.21 occasions of service per capita in 2015 which is barely half of the National target of 2.4.

22. These very poor indicators of health make a compelling case for the development of additional, more accessible health facilities within Wewak District.

23. Whilst the people of Wewak District generally have good access to commercial services the condition of the health infrastructure in the remote rural areas of the District is poor with most people required to travel to the Provincial General Hospital in Wewak for treatment of all but low acuity health conditions. Taul is situated approximately 40 iutes die east from the Provincial capital of Wewak. The rate of private vehicle ownership in the Taul area is very low with the majority of the population dependent upon public motor vehicles when health care is required. Since public transport generally only operates during daylight hours this further constrains access to healthcare.

24. The following image reflects the overall access situation for people of East Sepik but not necessarily their access to health services.

Image 4: Access to Services – East Sepik

TAUL

Image 5: Average Annual Incomes – East Sepik

TAUL

Overall, the people of East Sepik Province are generally poor with no major income generating activities such as commercial, large scale farming, mining or other lucrative activities such as tourism to provide paid employment. There are no pockets of high or very high average income such as exist in most other Provinces in PNG.

25. Some living in the Taul/Turubu area earn moderate incomes from the sale of cocoa, betel nut and fresh food as cash crops at markets in Wewak but transport is expensive and unreliable. The relatively recent arrival of the cocoa pod borer in the area has threatened the viability of the cocoa industry.

26. Most people in the Taul area are subsistence farmers practising low intensity mixed staple production of yam, taro, Chinese taro, banana and vegetables for subsistence. Sago is widely consumed and the people have access to a ready supply of ocean fish. However, as the following image depicts, people of the area are considered to be no more disadvantaged than those living elsewhere in the Province.

Image 6: Disadvantaged People – East Sepik Province

TAUL

E. INFORMATION DISCLOSURE, CONSULTATIONS, AND PARTICIPATION

27. The village of Taul was nominated by the Provincial Health Adviser as an alternative site for the development of a Community Health Post in the area when negotiations with the Catholic Church for access to Church land at Turubu failed in late 2014. Since that time there have been extensive and on- going consultations and meetings between the East Sepik Health Office, the District Administration and the community at Taul regarding the proposed new Community Health Post. The main consultations are outlined below:

 Representatives of Taul and other villages in the area had participated in the community consultations which occurred when the Turubu Mission land was being considered as the location fo the aeas Couit Health Post. The initial community consultation and awareness directly with landowners of the Taul village was undertaken by Officers of the Provincial Health Office and the District Health Officer in late November, 2014. This focused on the importance and benefits of the Community Health Post and how the PNG Government and its stakeholders wanted to provide much needed health services to remote areas. The need to free up land for such investments was explained and the hope expressed that the community would take ownership of the development for generations to come. It was explained that the project would have minimal social and environmental impacts and that control measures would be taken to minimise any adverse effects upon the community.

 On 30th January, 2015 the District Lands Officer, in the copa of the ‘PH“DPs “afeguads Officer, visited the site and compiled a Land Investigation Report in which the genealogy of the land owning Clan was established and the extent of the land to be made available was identified. The District Lands Officer also established that there was no disputed ownership of the land to be offered for construction of the Community Health Post.

 On 19th February, 2015 the District Health Officer, the RPHSDP Safeguards Officer, a registered Surveyor and the District Lands Officer visited the community and entered a Memorandum of Agreement, effectively a Voluntary Land Use Agreement, with the customary owners of the land known as Kauaa No. 1 for the use of part of that land. The extent of the land to be made available was agreed and pegged by the Surveyor. At that time the Safeguards Officer disclosed to the community other matters such as the Grievance Redress Mechanism and consulted with affected persons to fully inform them of their entitlements and to ensure that they understood the project, its impacts, and the responsibilities of parties concerned.

 On 23rd March, 2015 an Officer of the Valuer-Geeals Bah of the Depatet of Lads & Physical Planning, again accompanied by the RPHSDP Safeguards Officer and the District Health Officer, visited the site to assess the site for the value of the compensation to be paid. On 3rd June, 2015 the Valuer-General issued a Certificate of Valuation for K53,400.00 as the compensable value of the loss of the land and the planted improvements.

 On 22nd April, 2015 the site was revisited by the registered Surveyor who, in the company of the customary owners, conducted both a cadastral and a topographical survey. The cadastral survey was registered by the surveyor General on 19th May, 2015.

 On the 2nd February, 2016 an application was lodged by the Manager, Acquisitions of the Department of Lands & Physical Planning for a Certificate of Alienability and that was granted by the Secretary, Department of Provincial and Local Government Affairs on 7th March, 2016.

 On 16th August, 2016 the Wewak District Development Authority paid the customary owners K53,400 in exchange for the signed Deed of Release to the State and the Sale & Transfer of Land agreement.

Image 6: Delegate of Secretary for Lands & Physical Planning witnessing the signing of Deed of Release and Sale & Transfer of Land documents at Taul on 16th August, 2016.

 Communities and affected people visited by the Project staff were encouraged to discuss any issues of concern to them. The most common questions asked were about how the construction would be tendered and whether local firms were eligible to bid for parts of the work. All staff working on the various components have stressed that the tender and contracting process will be conducted in an open and transparent way so that all eligible firms can bid for the work, if they qualify according to the tender criteria.

28. Communities and affected people visited by the Project staff were encouraged to discuss any issues of concern to them. The most common questions asked were about how the construction would be tendered and whether local firms were eligible to bid. All staff working on the various components have stressed that the tender and contracting process will be conducted in an open and transparent way so that all eligible firms can bid for the work, if they qualify according to the tender criteria.

E. GRIEVANCE REDRESS MECHANISM (GRM)

29. The Project will establish a GRM, which will be accessible (considering literacy levels), predictable (known procedures, within a set timeframe), and transparent. The Provincial Safeguards Officer (PSO) will be the grievance redress focal point to address Project related concerns that may arise during implementation. Through public meetings, communities and affected people have been informed by the RPHSDP team that they have a right to grievance resolution and have been informed of how they can access the GRM. Complaints and grievance procedures will be based on those outlined in the Land Assessment Framework. These will be adapted slightly to ensure communities are easily able to register any complaints at the local level and that there is a publicly acceptable forum to deal with them.

30. A Grievance Registration book will be established at every Community Health Post site, to be held and administered by a trusted, literate member of the community. This may be the Village Magistrate, Wad Deelopet Couilo, the Aid Post OIC, oes goup leade o othe appropriate person hose the ouit ees theseles. Aoe a appoah this peso the Gieae ‘egista to lodge a oplait o gieae. Afte the tede is aaded ad efoe ostutio starts the RPHSDP health promotion and gender team will visit communities to set up a health committee under the Ward Development Committee structure and to conduct general health and HIV/AIDS awareness training for community members and contracting staff. During this, the Grievance Registrar will be identified and trained as part of the Health Committee.

31. The Grievance Registration book will record who is making the complaint, the substance of the complaint, to whom it has been referred for action and the date. Grievance procedures may address benefits, contractor compliance, social concerns and other issues apart from disputes relating to legally contestable land ownership rights. These will be referred to the District or Provincial Land Officers, who will institute a process to resolve land disputes and grievances based on accepted procedures of mediation. As required, the participation of appointed and traditional leaders will be facilitated to achieve a satisfactory resolution of any land issues at the local level. Every attempt will be made to ensure the women affected by such issues, irrespective of traditional constraints, are included in the mediation processes. Any disputes arising over alienated land or compensation must follow procedures set out in the Land Disputes Settlement Act 2000, (explained in Section G, paragraph 43), and if mediation fails, must then be referred to an appropriate court of law.

32. The Grievance Registrar in the village will, in the first instance, contact the Provincial Safeguards Officer whose key function in relation to the GRM is (i) to record, categorize and prioritize the grievances and inform the PSU; (ii) in consultation with the Project Coordinating Committee and complainant, settle the grievances; (iii) to inform the aggrieved parties about the solution or, if a solution is not found (iv) to forward unresolved cases to the RPHSDP Project Manager or to higher authorities.

33. The Grievance Registrar must forward any complaint to the PSO within five days of receiving it. The PSO will discuss with the Project Coordinating Committee members and endeavor to find a solution within two weeks of receiving the complaint. For unresolved complaints, the PSU Project Manager will consider the complaint and within one month will convey a decision to the APs. The PSU staff, along with local health officials, will assist the Project Manager in reviewing and addressing the oplait. If the APs ae ot satisfied ith the P“Us deisio, the a the take the gieae to the PNG judicial system.

F. APPLICABLE POLICIES AND LAWS

34. The PNG Constitution adopts customary law as part of the underlying law of the country and recognizes the property rights attached to customary land. According to the 2000 Underlying Act, customary law comprises the rules, rights and obligations pertaining to an individual or group by custom and tradition. Customary law applies and the courts recognize it where it is not inconsistent with written law. The Constitution also guarantees the right of the citizens to protection from unjust deprivation of property. No land or interest in land may be acquired compulsorily by the government, except as it is required for public purposes or other justifiable reasons. In the event of expropriation of land, just compensation must be made, by the expropriating authority.

35. While the Constitution does allow for compulsory acquisition for building infrastructure for health, the ‘PH“DP has stipulated that o lad ill e take ithout the ladoes full ageeet. Moreover, this agreement must be secured through a transparent process following the FPIC principles (free, prior and informed consent). To ensure that these principles are adhered to, the Project Safeguards staff have made joint field visits with the Department of Lands and Physical Planning staff to the proposed Community Health Post site.

36. The Land Act (1996) deals with ownership and use rights of customary land.1 It also sets out the procedures for the government to acquire customary land required for public purposes. The key provisions of the Act are (i) the government may acquire land, including improvements on land; (ii) usually the government negotiates agreements with the customary landowners for purchase of required land, but it can also compulsorily acquire the land; and (iii) the acquisition process involves several steps, including initial investigation, land survey, land investigation report (including genealogies of owner groups), determination of compensation value of land and any improvements, payment of compensation, registration of land for State ownership and transfer of title.

37. This process is being followed by the RPHSDP, working closely with the Department of Lands and Physical Planning, whose Officers are required to do the initial investigation including documenting genealogies of clans, valuing the land and its assets, registering the surveys and providing file numbers. Once this is done and approved, the file is sent to the Department of Provincial and Local Government Affairs so that a Certificate of Alienability can be issued for the title to be registered as State land. At the same time as the Government land acquisition process is proceeding, the Project is preparing standard safeguard documents for ADB approval.

38. The Land Disputes Settlement Act (2000) sets out the procedures for resolution of disputes involving customary land. The Act provides for a land disputes committee at provincial level and land courts at local, district and provincial levels. The committee can appoint land mediators. The Act promotes resolution of disputes through mediation based on the principles of traditional dispute settlement. If mediation fails, it is followed by appeal to the courts. The registration of customary landowners as an Incorporated Land Group (ILG) has been used a lot in private sector projects in PNG. While it is not a mandatory requirement for acquisition of land in case of public sector projects,

1 The customary land includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (matrilineal or patrilineal clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary rights holders” – the recognized traditional leaders of the group – who collectively have the authority to allocate secondary use rights through their spokesperson(s). Different cultures have different ways of allocating land between primary and secondary rights holders.

16 registration of ILGs may be helpful in dispute resolution and negotiation with landowners. On the other hand, ILGs in the past have often been fraudulently used for the interests of a small group, rather than the whole clan. The RPHSDP will not insist on registration of landowners into an Incorporated Land Group (ILG) unless there is a specific reason why it may be necessary to secure land.

39. The Fairness of Transaction Act of 1993 relates to the effect of certain transactions, to ensure that they operate fairly without causing undue harm to, or imposing too great a burden on, any person, and in such a way that no person suffers unduly because he is economically weaker than, or is otherwise disadvantaged in relation to, another person. The purposes of this Act are to (a) ensure the overall fairness of any transaction which (i) is entered into between parties in circumstances where one party is for reasons of economic or other advantage predominant and the other is not able to exercise a free choice; or (ii) for one reason or another, without attaching any evil design or bad faith, appears to be manifestly unfair or not to be genuinely mutual; and (b) allow for the re-opening and review of any transaction irrespective of fault and validity, enforceability or effect of any agreement; and (c) ensure the fair distribution and adjustment of rights, benefits, duties, advantages and disadvantages arising out of a transaction. Transaction means any contract, promise, agreement, dealing or undertaking of an economic or commercial nature whether supported by consideration or not entered into between parties, and includes (a) an informal, complete or incomplete transaction; and (b) a transaction governed by customary law.

40. Land Group Incorporation (Amendment) Act (2009) and Land Registration (Amendment) Act (2009). These Acts were brought into effect in 2011, following recommendations from the National Land Development Taskforce. The Acts recognize the corporate nature of customary groups and allow them to hold, manage and deal with land in their customary names, and for related purposes. These also failitate the oluta egistatio of ustoa lad, to e ko as egisteed la lad, ad makes that land available for development through the use of Incorporated Land Groups (ILGs). These laws encourage (a) greater participation by local people in the national economy by the use of the land; (b) better use of such land; (c) greater certainty of title; (d) better and more effectual settlement of certain disputes; (e) legal recognition of the corporate status of certain customary and similar groups, and (f) conferring on them, as corporations, of power to acquire, hold, dispose of and manage land, and of ancillary powers; and (g) encouragement of the self-resolution of disputes within such groups.

41. As noted above, the RPHSDP does not require landowners to register as an ILG, but may negotiate with these groups, where they exist, or encourage groups to register if they want to further develop their land in future.

G. AGREEMENTS ON LAND USE

42. The series of consultations, which were held with landowners and affected people regarding the land at Taul has been described in Section E. The teams visiting emphasized the benefits the community would gain by having a fully functioning Level 2 health service in the area, in return for providing land to the State. Environmental and social impacts were discussed, and the measures to control these were explained.

43. The process followed in acquiring the land is that laid out in the Land Assessment Framework which consists of the following steps for land purchase through negotiated agreement2:

2 Land Assessment Framework (Revised), 11 September 2013, PNG: Rural Primary Health Services Project, prepared by the National Development of Health, GoPNG, p.11 17

 National Department of Health/Project Support Unit (PSU) requests the Department of Lands & Physical Planning (DL&PP) to issue an official land file number for the Community Health Post site to be purchased  National Department of Health/PSU employs surveyors to determine boundaries, location, size and area of the land to be purchased in conjunction with the customary owners. It requests the Surveyor-General to register the surveys.  At the same time, PSU requests the Value Geeals Offie VGO to sed a Value to alue the land and any improvements (for example, garden crops, food trees, timber trees, structures). His/her report is sent to the VGO.  National Department of Health/PSU also requests the DL&PP to ask the Provincial Land Officer (PLO) to conduct the investigation for land purchase.  PLO will prepare a Land Investigation Report (LIR) including ownership genealogy, rights and interest held in the land and estimated value of improvements to land in consultation with the landowners, the Valuer-General and other relevant government offices.  The LIR is the suitted to the espetie Poie fo the Poiial Adiistatos PA signed recommendation for the land to be alienated.  The completed LIR is sent back to DL&PP where the land file is compiled consisting of the registered survey plan, the valuation certificate, and the PA-approved LIR.  DL&PP then sends the land file to Department of Provincial and Local Level Government Affairs (DPLGA) where a Certificate of Alienability confirming that there is no impediment to land purchase is prepared.  This is then returned to the DL&PP which prepares the purchase documents and advises National Department of Health when it is ready for payment. The DL&PP executes the purchase of the land. Details are then published in the Government Gazette allowing 21 days for objections.  National Department of Health receives the land file with the survey plan, the LIR including the valuation report, and the Certificate of Alienability, and the land is paid for with State funds from various sources. In the case of Taul the District Development Authority has paid for the land.  Copies of the signed documents are also sent to the PLO for their records  National Department of Health keeps records of titles, approvals and any lease agreements.

44. As explained above, part of the process was a joint visit by the Provincial Safeguards Officer, District Health Manager, and Project Safeguards Staff to discuss and sign the voluntary land use agreement, pending completion of the processes for full alienation of the land by negotiated agreement. During the same community meeting there was disclosure of GRM to the community and an explanation of the Environmental Management Plan ad otatos tes ad oditios.

45. The Memorandum of Agreement (VLUA) regarding land use outlines the responsibilities and commitments of clans and communities as: agreeing to National Department of Health using the land for construction of the Community Health Post; affirming that the process has been based on free and prior informed choice; noting that, in the case of a voluntary donation of land, if the State does not use the land, permission to use the customary land ceases; and agreeing that they are legitimate representatives of all the clans jointly owning land. The agreement also states that when the State purchases the land it requires compensation and transfer of title. The National Department of Health responsibilities explained in the LAF are to minimize land requirements; conduct necessary surveys to determine land area, identify owners and affected people; meaningfully consult landowners and disclose the grievance redress mechanism; avoid damages to assets on the land; give priority to Affected Persons for employment in civil works at the Community Health Post site, and ensure all land payments due to APs have been completed and the site is free of encumbrances before construction work starts. A copy of the Voluntary Land Use Agreement can be found in Annex Four. Now that the

18 land has been alienated and compensation paid, this VLUA has been superseded by the full transfer to the State of the title to the land.

46. The project at Taul includes construction of the standard five-bed design for a Community Health Post and will include provision of equipment, drugs, and allocation of 3-4 staff. The Province has committed to providing the required staff and the Project will ensure that they receive the relevant training to ensure the centre operates at the required standards for Level 2 health facilities in PNG. A site plan of the proposed Community Health Post site is attached in Annex 1.

H. COMPENSATION AND BENEFITS

45. The landowning Yangana Clan members agreed initially to give their land voluntarily for the building of the Community Health Post. However, ultimately, permanent use of the land was obtained through negotiated purchase following the Land Act and LAF. This is in accordance with GoPNG policy, that all new State infrastructure should be built on State land. Once the GoPNG land acquisition process had been completed, and the title transferred to the State, the landowners received compensation from the State for both the value of the land, and the replacement cost for improvements. Affected landowners and land-users were consulted according to LAF requirements, and the value was calculated by a registered Valuer from the DL&PP using the DL&PP Valuation Schedule (2013) taking into account the replacement value. This was then reviewed and approved by the Valuer-General. There were no structures on the site except for the aid post and staff buildings. The valuation of land by DL&PP is based on accepted replacement costs, which include (i) adequate information about any recent land transactions; (ii) land value by types; (ii) cropping patterns and crop production; and, (iv) availability of land in the sub-project areas. The Valuer-General ensures that any compensation is based on prevailing market rates or replacement cost principles.

46. Affected persons at Taul will benefit from the cash payment for land and by having some short- term employment opportunities (mainly unskilled work) as a result of the project during the construction phase. The requirement to hire local labour, where possible, will be part of the otatos otat. While suh eploet oppotuities o thei o do ot esue sustaiale livelihoods, being paid at least the minimum wage and enjoying working conditions as per ILO Core Labour Standards (a recognized requirement for ADB financing of the Project), the PSU is confident that APs will be slightly better off financially as a result of the project and certainly better off in terms of access to health services.

47. The RPHSDP recognizes that gender considerations apply to all public infrastructure projects. In conducting this due diligence exercise, women who will be affected by this project have been consulted, both in mixed groups with men, but also in groups of women. Measures proposed to ensure gender equitable practices and outcomes include:

 Iterative consultations with women throughout all stages of the project cycle when preparing for and constructing the Community Health Post  That women clan members, not just men clan members be recorded in the LIR and valuation

processes conducted by DL&PP, and included any subsequent benefits  Women being informed about how they can lodge grievances with the Project (and ultimately ADB) if they are dissatisfied with any aspects of the project  Ensuring that women Affected Persons (APs) and not just men, are offered priority waged employment during construction, and are afforded equal pay and opportunities  Addressing concerns women APs might have with safety and security issues, in contexts where they have to relocate their gardening activities  Ensuring that all socio-economic data collected for the project is gender disaggregated in order to analyse the differential impacts at intra-household, intra-inter clan, and community level.  Social risks associated with HIV/AIDS and other STIs will be mitigated to a large extent by employing as many local people on construction activities as possible and by awareness and prevention programmes designed to empower women and inform both women and men of the risks. All contracted staff will undertake a RPHSDP course designed for the purpose.

I. BUDGET AND SOURCES OF FUNDS

48. The GoPNG has declared its intention to increase the proportion of land owned by the State and has an annual budget to pay for the land needed for public service infrastructure. The GoPNG will therefore fund all land acquisition activities involving landowner compensation while the Project finances consultant services to oversee the land acquisition and monitoring of land activities. In the case of East Sepik, it is the District Development Authorities which are paying for the Community Health Post land in both Wewak and Maprik Districts.

The exact budget for land acquisition activities at Community Health Post sites will vary from site to site. The costs for Taul are outlined in the table below (excluding the consultancy costs):3

Item Costs Value of land to be acquired K50,400.00 Value of planted improvements K3,000.00 Structural Improvements NIL TOTAL COSTS (Rounded) K53,400.00

J. INSTITUTIONAL ARRANGEMENTS

49. The National Department of Health is the Executing Agency and the Provinces are Implementing Agencies for the Project and the Provinces are responsible for the day-to-day implementation activities related to land acquisition. These activities include:

 Collaboration with and assistance to the Provincial/District Land Officer at the Community Health Post site to undertake their work and comply with Government procedures, the Pojets poliies ad ADB euieets

 Provision of resources to allow Provincial staff to accompany Project Support Unit (PSU) Safeguards staff to sites

3 Costs from LIR / land valuation by DL&PP, based on Government Schedule (2013) 20

 Collaboration with and assistance to the Provincial/District Land Officer, Provincial Safeguards Officer, and PSU Safeguards consultants in consulting and negotiating agreements with affected landowners and users

 Facilitation of consultations with Ward Development Committees and affected communities and ensuring that all stakeholders are informed about the Project, its policies and procedures

 Ensuring the requirements concerning public disclosure of the provisions for land acquisition and compensation are followed

 Informing communities about the grievance redress mechanism and overseeing and monitoring the process

 Signing Memoranda of Agreement for the use of customary land with clan leaders and affected landowners and/or users

 Signing a Memorandum of Agreement with the National Department of Health agreeing to manage, operate, support, staff, and provide budgets and supplies for the new facility.

 Ensuring that cadastral land surveys, valuations, and Land Investigations Reports are completed and registered with the Surveyor-General and DL&PP in a timely manner.

50. Provincial Safeguards Officers, and other Government staff who are involved in implementing the Pojets lad poliies hae ee poided ith taiig i the ADBs soial safeguad poliies ad procedures

51. The Provincial Safeguards Officer is also responsible for monitoring of land acquisition activities, and will be the focal point for the Grievance Redress Mechanism. He/She is assisted and supported the Pojet “uppot Uits “afeguads “peialists.

K. IMPLEMENTATION SCHEDULE

52. The implementation schedule for land related activities at Taul was as follows:

Activities Schedule 1 Confirm location and type of land ownership at Community Health November, 2014 Post site 2 Compilation of Land Investigation Report and gather information for 30th January, LIR and Valuation (Lands staff), and ADB Land Screening Report, 2015 Environmental Management Plan and Due Diligence (PSU Safeguard staff) 3 Consultations with affected communities and agreement on land 18th February use/acquisition, with signing of a Voluntary Land Use Agreement 2015 between landowners and the State witnessed by Land Officers 4 Disclosure of ADB Safeguards Provisions to communities, including 18th February Grievance Redress Mechanism 2015

5 Complete survey fieldwork/visits 22nd April 2015 6 Joint DL&PP / Provincial Lands Office and Safeguard Team visit to 23rd March assess value of land and planted improvements 2015 7 LIR submitted to Provincial Administration for approval and 19th May, 2015 signature. 8 Valuer-General verifies the land valuation at the Community Health 3rd June, 2015 Post site 9 Cadastral Survey registered by Surveyor-General 19th May, 2015 10 Certificate of Alienability approved 7th March, 2015 11 DL&PP and Provincial Lands Office complete land purchase. Land is 16th August,2015 purchased and title issued to National Department of Health

L. MONITORING AND REPORTING

53. The RPHSDP Safeguards staff will submit all Land Screening, Environmental Management Plans and Due Diligence reports to ADB detailing the land acquisition processes. The Provincial Safeguards Officer will be responsible for on-going monitoring of the land activities, supported by PSU, including assisting in the monitoring of contractor compliance with the Environmental Management Plan. The PSU will prepare semi-annual progress reports for ADB as part of Project performance monitoring. An external NGO has been appointed to undertake third-party monitoring and verification of the land acquisition processes.

ANNEXURES (Available Upon Request)