Resettlement Planning Document

Due Diligence Report

Loan Number: 2796 and Grant Number: 0267 NEP August 2012

Nepal: Decentralized Rural Infrastructure and Livelihood Project- Additional Financing

Shreebhavar-Kotila Road Subproject Baitadi

Prepared by the Government of

The 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. District Development Committee, Baitadi Office of District Development Committee, Technical Office, Baitadi Decentralized Rural Infrastructure and Livelihood Project-Additional Financing (DRILP-AF) District Project Office, Baitadi

Decentralized Rural Infrastructure and Livelihood Project-Additional Financing (DRILP-AF)

Detailed Project Report Shreebhavar-Kotila Road Sub Project

Section III: Safeguard

Volume 2: Due Diligence Report- Safeguard (Resettlement)

August 2012

TABLE OF CONTENTS

1 INTRODUCTION ...... 1 2 BACKGROUND OF THE SUBPROJECT...... 1 3 DUE DILIGENCE FINDINGS ...... 2 3.1 Scope of Impacts by the Subproject ...... 2 3.2 Status of RP Implementation ...... 2 3.3 Outstanding Activities ...... 4 4 DRILP AF REQUIREMENTS ...... 5 5 CONCLUSION AND FURTHER ACTION ...... 7 APPENDIXES ...... 8 1. List of Affected Households yet to be compensated in Shreebhavar-Kotila Subproject

2. Decision of DLRCC Formation

3. Decision of GRC Formation

4. Decision of Safeguard Desk Formation

5. Letter of Appointment

6. Letter from DDC/DPO

LIST OF TABLES

Table 1: Summary of Losses by the Sub-Project ...... 2 Table 2: Checklist of Safeguard Requirements ...... 3 Table 3: Compensation Disbursement and Deed Transfer Progress ...... 3 Table 4: Proposed Action Plan for Outstanding Issues of RP under DRILP ...... 4 Table 5: Action Plan for Completion of Resettlement Activities ...... 7

Due Diligence Report Section III, Volume II Shreebhavar-Kotila Subproject, Baitadi Due Diligence (Resettlement)

1 INTRODUCTION

1. This due diligence report is prepared in order to document the implementation and related issues of Shreebhavar-Kotila Road Resettlement Plan (RP) prepared in Decentralized Rural Infrastructure Livelihood Project (DRILP). The due diligence report is prepared by resettlement team of Central Implementation Support Consultant (CISC) lead by Resettlement Advisor in close coordination with District Implementation Support Consultant (DISC), District Technical Office (DTO) and District Project Office (DPO) of DRILP.

2. The major objective of the due diligence report is to examine safeguard issues and ensure appropriate mitigation measures are incorporated in the safeguard plan and project design. It documents the implementation progress status and commits to fulfill all outstanding activities within given time frame. This document reports the involuntary resettlement plan prepared, approved from ADB and its implementation in Shreebhavar-Kotila subproject.

2 BACKGROUND OF THE SUBPROJECT

3. The construction of Shreebhavar-Kotila Road in Baitiadi District was started under ADB funded DRILP. The road is a part of 24.47 km long Shreebhavar-Kotila-Hat Road .The road subproject is located in northeast part of Baitadi district in Far-Western Development region of Nepal. The road starts at Dholyamod of Shreebhavar VDC and passes through Bhumiarj and Shikharpur VDCs and ends at Kotila in Kotila VDC. The major settlements along the subproject are Dholyamod, Rithepani, Airigaun, Manakot, Joladhar, Rapana, Bhumiraj, Dholpani, Ratoka, Airigaun, Badugaun. The road connects with Dadeldhura-Bajhang feeder road at 27 km from Khodpe. Shreebhavar-Kotila road subproject not only serves for local people but also gives access to people in Uttarkhanda, India thereby developing pilgrims' tourism targeting famous Bhagawati Temple which is located near the road alignment.

4. Out of total 24.47 km length, only 15.00 km was undertaken as first subproject under DRILP and RP was approved up to 15+00 km. However actual length of this subproject was 15+700 km instead of 15+00 km which has been error in project documents. This has been verified through DISC and DPO during DPR preparation. It has been confirmed through official letter received from DDC Baitadi. Hence revised length of DRILP AF is 15+700 km and the approved resettlement plan covered all loses up to 15+700 km. In this context there is no APs missing or added with respect to approved RP with addition of 0.7 km at this point. The 15.07 km road could not be completed in DRILP due to difficult geological formation and also due to budget constraints. In DRILP the motorable track has been opened intermittently throughout. Overall 3.5 km section of road remains as untouched section. The road sub project directly affects 119 families of 853 persons. The district intends to complete the remaining civil works and as such the road is included in the indicative list of road projects in DRILP – AF. DDC has expressed intention to undertake road construction further to Hat. This due diligence report covers the Shreebhavar-Kotila road for which the RP was prepared.

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Due Diligence Report Section III, Volume I Shreebhavar-Kotila Subproject, Baitadi Due Diligence (Resettlement)

3 DUE DILIGENCE FINDINGS

3.1 Scope of Impacts by the Subproject

5. The Resettlement Plan (RP) of this section was approved by ADB on 13th May 2008, prepared by the DDC with support of CISC. The RP covers resettlement scope of Shreebhavar-Kotila under DRILP. During preparation of RP the resettlement survey examined the impact of the road on livelihoods of the families affected by the Shreebhavar-Kotila road. It basically includes the assessment of loss incurred by the subproject section and the degree of vulnerability of the affected families. There is no change in the affected families or affected plots. Additionally substantial compensation has been paid and other mitigation measures and requirements proposed in approved resettlement plan have been found fully addressed during implementation of resettlement plan which has also been reported by verification report. Hence the approved RP is sufficient to address the requirement of DRILP AF. Nonetheless additional requirements according to Project Administration Manual (PAM) of DRILP AF have been incorporated in this report.

6. The approved RP of Shreebhavar-Kotila Road showed that resettlement impact was experienced by 975 people of 136 households in terms of use and need of additional land and other assets. During assessment survey, people showed willingness to donate their land; however land donation was accepted only from the eligible families through poverty analysis of those affected families. The approved RP has documented that 8.85 ha of private land need to acquire for the road construction. There was no structure affected along the alignment but trees, fruits and crops were compensated.

7. Although every family along the alignment was willing for land donation, the socio-economic condition of the families revealed 92 households fall below poverty line and another 3 families lost more than 10 percent of their total land holding. Hence these families were not opted for land donation but donation was accepted from eligible 24 households. Summary of losses incurred along the alignment according to approved RP is under Table 1.

Table 1: Summary of Losses by the Sub-Project Nature of Loss Unit Total Remarks Land Loss Ha 8.85 Private land Land Loss HH 136 HH reduced to 119* during implementation Residence building No 0 Business structure No 0 Public structure No 0 Private trees (fruits) No 2092 Crops (Beans, Khar) Rs 20000 Lumsum amount Source: Resettlement Plan, 2008 * The revised data is not due to change in data in the field but due to repetiti