Land Acquisition and Resettlement Plan

October 2011

INO: Regional Roads Development Project West (Sambas & Districts)

Prepared by Directorate General of Highways, Ministry of Public Works for the Asian Development Bank.

11 October 2011 i

TABLE OF CONTENTS

I. INTRODUCTION 1 A. Project Background 1 B. Resettlement Plan 2 II. SCOPE OF RESETTLEMENT IMPACTS 2 III. SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS 3 IV. CONSULTATION AND DISCLOSURE 5 V. GRIEVANCE REDRESS MECHANISM 6 VI. LEGAL AND POLICY FRAMEWORK 7 A. Relevant Laws and Regulations In 7 B. ADB Policies 8 C. Gaps Analysis and Project Principles 8 VII. PROJECT ENTITLEMENTS 11 VIII. LARP COST ESTIMATES 12 IX. IMPLEMENTATION ARRANGEMENTS 15 A. Executing and Implementing Agencies 15 B. Mobilization of Design Supervision Consultants 15 X. MONITORING AND EVALUATION 16 A. Internal Monitoring 16 B. External Monitoring and Evaluation 16 XI. IMPLEMENTATION SCHEDULE 17

11 October 2011 i CURRENCY EQUIVALENTS (as of 14 October 2011) Currency unit – rupiah (Rp) Rp1.00 = $0.00011 $1.00 = RP 8,892

ABBREVIATIONS

ADB Asian Development Bank AH Affected Household AP Affected Person BAPEDA Provincial / District Development Planning Agency BAPPENAS National Development Planning Agency EA Executing Agency DMS Detailed Measurement Survey LAC Land Acquisition Committee LARP Resettlement Plan PMU Project Management Unit PIC Project Implementing Consultant RCS Replacement Cost Study RIPF Resettlement and Indigenous Peoples Framework ROW Right-of-Way SES Social Economic Survey

NOTE

In this report, "$" refers to US dollars

This land acquisition and resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

11 October 2011 i Definition of Terms

Affected person - means any person or persons, household, firm, private or public (AP) institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. In the case of a household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components.

Compensation - means payment in cash or in kind (e.g. land-for-land) to replace losses of land, housing, income and other assets caused by the Project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market value, plus any transaction costs such as administrative charges, taxes, registration and titling costs. In the absence of functions markets, a compensation structure is required that enables affected people to restore their livelihoods to level at least equivalent to those maintained at the time of dispossession, displacement, or restricted access. Cut-off date - This refers to the date prior to which the occupation or use of the project area makes residents/users of the same eligible to be categorized as AP, regardless of tenure status. In this Project, the cut-off date will be the official announcement of the district government about the project following completion of detailed design. Entitlement - means a range of measures comprising compensation in cash or in kind, income restoration support, transfer assistance, income substitution and relocation support which are due to affected people, depending on the nature of their losses, to restore their economic and social base.

Involuntary - addresses social and economic impacts that are permanent or Resettlement temporary and are (i) caused by acquisition of land and other fixed assets, (ii) change in the use of land, or (iii) restrictions imposed on land.

Land - means the process whereby an AP is compelled by a public agency acquisition to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation equivalent to the replacement costs of affected assets.

Rehabilitation - means assistance provided in cash or in kind to project affected persons due to the loss of productive assets, incomes, employment

or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life.

11 October 2011 ii Relocation - means the physical relocation of an affected household from her/his pre-project place of residence.

Severely - Those who experience major impacts which is defined as being affected physically displaced from housing or losing 10% or more of their persons productive assets (income generating).

Vulnerable - are distinct groups of people who might suffer disproportionately or groups face the risk of being marginalized by the effects of resettlement and specifically include: (i) households headed by women, elderly, or disabled, (ii) households falling under the generally accepted indicator for poverty, (iii) landless households, and (iv) ethnic minorities.

11 October 2011 iii EXECUTIVE SUMMARY

Introduction. The draft Resettlement Plan for Sambas was agreed between the Government of Indonesia and ADB in July 2010. In July 2011, following the due diligence field review, it was agreed that the Land Acquisition and Resettlement Plan (LARP) be revised to include households, private and government entities who were not covered in the additional road lengths as per DGH design. In September 2011, additional resettlement surveys and consultations with potentially affected persons and local officials were carried out. Results of these additional activities are incorporated in this revised LARP. The number of households affected and types of impacts are tentative and are subject to change during the finalization of this draft LARP which will only be done during loan implementation.

During finalization of this draft Resettlement Plan, a census will be carried out and detailed measurement survey (DMS) will be undertaken to determine the actual impacts on land and assets of each household, and consultation meetings will be undertaken with the affected households. The Final LARP will be submitted to ADB for review and concurrence. Once the Final LARP has agreed between ADB and DGH, DGH can commence implementation of the Final LARP.

Background. This Resettlement Plan has been prepared for subproject road links in Singkawang and Sambas District, Singkawang – Tebas (30010.1), Sp3. Tanjung Harapan – Galing, and SP3 Tanjung-SP3 Aruk (30095.1). This draft LARP is based on preliminary design using a corridor of impact (COI) of 14 meters. During the preparation of this draft, meetings were held with potentially affected households and other stakeholders to determine potential impacts on land, non-land assets, and income of households living along the subproject roads. The number of households affected and types of impacts are tentative and are subject to change during the finalization of this draft LARP which will only be done during loan implementation.

Scope of Resettlement Impacts. Based on the corridor-of-impact of 14 meters, the asset inventory1 carried out between 10-24 February 2010 and additional survey on September 2011 found that there are about 271 households and 4 health clinic that will be affected. Shops (120) will be partially affected and will not require any relocation. It is estimated that repair of shops will only take 5 days to complete.

Legal and Policy Framework. The legal and policy framework for compensation, resettlement and rehabilitation under the Project is defined by the relevant laws and regulations of the Government of Indonesia and ADB safeguard policy statement. Objectives of the project’s policy are to avoid, if not minimize resettlement impacts, restore livelihoods and improve living standards of poor and vulnerable households.

Project Entitlements. Affected land, structures and fixed assets will be compensated based on the principle of replacement cost. Assistance for loss of income will also be provided to affected business during relocation or repair of shops.

Ethnicity, Vulnerabilities and Gender Issues. In Singkawang – Tebas link, people are a mix of Chinese and Melayu (native Sambas ethnic) while the SP3 Tanjung – SP3 Aruk are mainly Daya people and a small number of Melayu ethnic groups. These communities have lived there for decades or generations and are now well integrated into the wider socio-economic and cultural community. Most of the Chinese are Konghucu or Christian, while most of the Melayu ethnic are Muslim. Local people derive income from farming (coconut plantation), while people alongside the road usually run their own business. Daya alongside this link have been empowered for more than a decade, and have been integrated into the wider socio-economic and cultural community, while at the same time retaining many aspects of their traditional culture which are important to

1 The asset inventory is a preliminary record of affected or lost assets at the household, enterprise or community level.

11 October 2011 i them. All of the Dayas in this link are Christian or Catholic and many of them have inter-married with other ethnic groups.

The 27 elderly households and 9 households headed by women may require special assistance during restoration of their affected properties, such as easy access to get materials and labor. During LARP finalization, needs of these households will be further assessed and will be provided special assistance as and when required. Women will be consulted and their participation will be encouraged during finalization of the LARP.

Participation, Disclosure, and Grievance Redress. The affected households were met and interviewed during LARP preparation and socialization was also carried out. Local officials were also met and their concerns and suggestions were elicited during the resettlement planning process. The grievance mechanism has been designed to ensure that the affected peoples' (or APs’) concerns and grievances are addressed and resolved in a timely and satisfactory manner. The key information in the draft LARP will be disclosed to APs by 23 July 2010.

Implementation Arrangements. The Directorate General of Highways of the Ministry of Public Works is the Executing Agency for this Project. DGH will establish a project management unit (PMU) headed by a manager (PMU head) with experience in externally financed projects. PMU staff will be responsible for the day-to-day implementation and be accountable for technical, safeguards, and financial reporting. With regard to preparation, finalization and implementation of the LARP, PMU staff will work closely with the district government who is mandated by law to handle land acquisition and resettlement.

LARP Budget: Total LARP cost estimates is Rp. 3,497,610,375 (US$ 376,087). It covers payment for non-land assets and assistance to businesses during relocation/repair of shops. It also includes cost for engagement of external monitor and contingency. Administration cost is also included. Unit rates for non-land assets will be adjusted to reflect current market rates of labor and materials at the time of payment to APs. All costs will be updated and will be reflected in the Final LARP.

Monitoring: PMU will submit quarterly progress reports to ADB with regard to LARP finalization and implementation activities. In addition, an external monitor will be engaged to do its compliance review and assessment. The external monitor will submit quarterly monitoring reports to PMU and ADB. All monitoring reports will be uploaded on the ADB website.

Implementation Schedule. As the preparation of this LARP is based on the preliminary design the information contained in this LARP are preliminary and estimates only. There is a need for this LARP to be finalized after the completion of detailed design and based on census of affected persons. Changes to the draft LARP will take the form of finalizing the list of the project affected persons, extent of land to be cleared (or acquired if applicable) and impacts on the affected people resettlement budget, and implementation schedule. The entitlement matrix of this draft LARP may be revised to reflect the relevant changes but the standards set in the draft LARP entitlement matrix cannot be lowered when the resettlement plan is finalized.

Land acquisition, relocation of affected households and clearance of land will not commence until the Final LARP has been agreed between ADB and DGH.

Table ES-1: Implementation Schedule No Activity Schedule During Loan Processing 2009-2010 Preparation of Draft Resettlement Plan based on initial design* 2009-2010 Disclosure of key information in the LARP 2010 and 2011 Detailed Design** Jan – Sep 2010 During Loan Implementation Finalization of Draft LARP based on Detailed Design Establishment of Land Acquisition Committee / Appraisal Team Jan/Feb 2012 Mobilization of External Monitor February 2012

11 October 2011 ii No Activity Schedule Socialization and Consultation Feb - June 2012 Census and Detailed Measurement Survey Feb - May 2012 Replacement Cost Survey to update current market value of land and March-April 2012 non-land assets Finalize LARP, disclose key information of the final LARP to the affected June 2012 people, and submit to ADB for review and concurrence ADB reviews and sends concurrence on Final LARP June/July 2012 ADB uploads Final LARP on ADB website July 2012 B. Resettlement Implementation as per Agreed Final LARP Commence payment of compensation October – November 2012 Protection of acquired land November 2012 C Other LARP Implementation Activities Monitoring (From LARP Finalization to Implementation) Internal Monitoring (quarterly reporting) February 202 onwards External Monitoring (quarterly reporting) February 2012 - onwards Grievance Redress Feb 2012 – onwards Uploading of monitoring reports February 2012 - onwards D Civil Works 2013 * During Project Preparation Technical Assistance (PPTA) ** Detailed design is being carried out by DGH and it is not part of the tasks of the TA consultants..

PMU will not award a civil works contract until the head of district government has officially confirmed in writing that (i) payment has been fully disbursed to the affected persons and rehabilitation measures are in place as per Final LARP agreed between DGH and ADB; (ii) already-compensated affected persons have cleared the area in a timely manner; and (iii) the area is free from any encumbrances.

11 October 2011 iii I. INTRODUCTION

1. The draft Resettlement Plan for Sambas was agreed between the Government of Indonesia and ADB in July 2010. In July 2011, following the due diligence field review, it was agreed that the LARP be revised to include households, private and government entities who were not covered in the additional road lengths as per DGH design. In September 2011, additional resettlement surveys and consultations with potentially affected persons and local officials were carried out. Results of these additional activities are incorporated in this revised LARP. The number of households affected and types of impacts are tentative and are subject to change during the finalization of this draft LARP which will only be done during loan implementation.

2. During finalization of this draft Resettlement Plan, a census will be carried out and detailed measurement survey (DMS) will be undertaken to determine the actual impacts on land and assets of each household, and consultation meetings will be undertaken with the affected households. The Final LARP will be submitted to ADB for review and concurrence. Once the Final LARP has agreed between ADB and DGH, DGH can commence implementation of the Final LARP.

A. Project Background

3. For , there are a total of 7 subproject roads. Two of these subproject links in Sambas District, Singkawang – Tebas (30010.1) and SP3 Tanjung-SP3 Aruk (30095.1) will have resettlement impacts. The subproject roads are shown in the table below.

Table 1: Subproject Roads Total Design Design Resettlement Link West Length Length Existing Width Impacts No. Kalimantan (km) (km) Width (m) (Yes/No) SANGGAU 1 30024.1 SOSOK-TAYAN (Section 01) 46.1 23.0 6.0 6.0 Yes SOSOK-TAYAN (Section 02) 23.1 6.0 6.0

2 30003.2 TANJUNG-SANGGAU 39.0 37.3 5.9 6.2 Yes SAMBAS 3 30010.1 SINGKAWANG-TEBAS 43.6 29.8 4.7 6.0 Yes

4 30010.2 TEBAS-SAMBAS (Bypass) 32.2 6.1 6.0 6.0 No

5 30094.1 TJ HARAPAN-SP3 7.6 7.6 4.5 6.0 No BANTARAN 30094.1 SP3 BANTARAN - SP3 12.5 12.5 4.5 6.0 GALING

6 30094.2 SP3 GALING - SP3 TANJUNG 41.4 20.0 4.5 6.0 No (section 01) SP3 GALING - SP3 TANJUNG 21.4 4.0 6.0 (section 02)

7 30095.1 SP3 TANJUNG-SP3 ARUK 11.3 11.2 4.5 6.0 Yes

4. The Sambas District, Singkawang – Tebas (30010.1) and SP3 Tanjung-SP3 Aruk (30095.1) link will pass through five Sub Districts and 11 villages. The fifth sub districts are: Singkawang Tengah with village is Kelurahan Jawa and Singkawang Utara with villages are Sei Wie and Sei Garam and in Sambas Regency consist of Pemangkat, Semparuk and Sajingan Besar, while the villages are: Pemangkat Kota, Harapan, Penjajap, Prapakan, Semparuk, Singaraja, Segedong and Kaliau.

11 October 2011 1 B. Resettlement Plan

5. This Resettlement Plan has been prepared for Sambas District based on initial design. A total corridor-of-impact (COI) of 14 meters (m) has been used as basis for estimating the scope of resettlement impacts. This draft LARP is based on preliminary design using a corridor of impact (COI) of 14 meters. During the preparation of this draft, meetings were held with potentially affected households and other stakeholders to determine potential impacts on land, non-land assets, and income of households living along the subproject roads. The number of households affected and types of impacts are tentative and are subject to change during the finalization of this draft LARP which will only be done during loan implementation.

6. During finalization of this draft Resettlement Plan, a census will be carried out and detailed measurement survey (DMS) will be undertaken to determine the actual impacts on land and assets of each household, and consultation meetings will be undertaken with the affected households. The Final LARP will be submitted to ADB for review and concurrence. Once the Final LARP has agreed between ADB and DGH, DGH can commence implementation of the Final LARP.

II. SCOPE OF RESETTLEMENT IMPACTS

7. Estimated Number of Affected Persons. The asset inventory 2 was carried out on 11- 25 February 2010 and additional survey on 17- 22 February 2011. The Corridor-of- Impact (COI) used for the project is 14 meters total. An estimated 275 affected persons (or "APs") have been identified.

8. Impacts on Land. The estimated area of land to be acquired is 4,711.75 sq.m. With the exception of 30 households who are within the ROW, the 245 APs have certificate and non-certificate land. Non-certificate land (SKT/Girik) is issued by Head of Sub-District or Head of Village, and falls under customary right. These 245 APs are entitled to payment for land while the 3 households are not entitled to payment for land but are entitled to cash assistance for their affected structures (fence and shops) at replacement cost.

Table 2: Type of Ownership/Rights of APs on Land No. of APs (HHs + With certificate/ Institutions) Non-Certificate Land Within the ROW No. of APs Land to be Acquired (m2) Singkawang- 260 230* 4,405.95 30** Tebas SP3 Tj. Harapan- 3 3** 130 0 Galing SP3 Tanjung – 12 12** 175.80 0 SP3 Aruk Total APs 275 245 4,711,75 30 * 224 households + 1 health center clinic+ + 1 school + 1 institution + 1 bank of Kalbar. ** households.

9. Impacts on Businesses/Shops. There are a total of 133 affected businesses/shops along the three links. Main structures of the 120 shop/business owners are partially affected. The remaining 13 shop owners have only their terraces affected. There will be no relocation of shops.

10. Affected Secondary Structures. Other structures affected are concrete and

2 The asset inventory is a preliminary record of affected or lost assets at the household, enterprise or community level.

11 October 2011 2 wooden fences and also terraces owned by 67 households.

11. Impact on Health Center Clinic. The affected structure owned by the health center clinic in Harapan Village (Singkawang-Tebas Link) is only fence and will be partially affected.

III. SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS

12. The socio-economic survey was carried out in parallel with the census and inventory of losses. A total of 244 households were interviewed. Nine of the households interviewed were headed by women. Socio-economic profile of 235 households headed by men are presented below.

13. Place of Origin. Almost all of the respondents originated from West Kalimantan (97%). The rest came from various areas such as Central Java, South Sulawesi, East and West Java.

Table 3: Place of Origin PLACE OF ORIGIN Male HH % West Kalimantan 228 97.43% West Java 1 0.46% East Java 1 0.46% Central Java 4 1.40% South Sulawesi 1 0.46% Total 235 100 %

14. Occupation. More than half of the respondents (65.53%) were engaged in private business for their livelihood, while 17% were into trading. Others were into rubber tree farming comprising 9% of the total respondents. The rest were working in workshops or employed as civil servants and teachers. Seven of the respondents were already retired.

Table 4: Occupation Occupation Total % Rubber Farmers 19 8.75% Traders (sell food/store owner) 37 17.05% Entrepreneurs (swasta) 155 65.95% Police 1 0.46% Hospital (Doctor) 1 0.46% Labor 4 1.84% Govt employees 11 5.06% Retired 7 3.22% Total 235 100 %

15. Education. Of the 225 respondents, 39% had attained elementary education while more than the majority had reached at least the high school level with 23% reaching junior high and 35%, senior high. There were four respondents who had reached the university level. Two indicated that they did not have formal education.

Table 5: Education Education Total % Elementary School 88 37.45% Senior High School 60 25.53% Junior High School 79 33.19% University 4 1.84% No formal education 2 0.92% Total 235 100 %

11 October 2011 3 16. Income and Expenditure. Sixty seven percent earned income between Rp.500,000 to 1,000,000 per month with the rest collecting an income of more than Rp. 1,000,000 per month. With regard to the respondents’ expenditure for their daily needs, 85% spent between Rp. 500,000 to 1,000,000 per month. The remaining 15% were spending more than Rp. 1,000,000 per month for their day to day needs.

Table 6: Income and Expenditure (per month) INCOME Total % Less than 500,000 0 500,000 to 1,000,000 152 64.68% 1 million to 3 million 82 35.04% More than 3 million 0 Total 235 100% Expenditure for Daily Needs Total % Less than 500,000 0 500,000 to 1,000,000 195 82.97% More than 1 million 39 16.66% Total 235

17. Profile of Households Headed by Women. All nine households were from West Kalimantan. With the exception of one rubber tree farmer, the households were engaged as entrepreneurs or store owners. All reached elementary level. In terms of income, 6 of the houseolds earn between Rp.500,000 to 1,000,000 per month with the rest collecting an income of more than Rp. 1,000,000 per month. In terms of expenses for their daily needs, 1 out of the 8 households spend more than Rp. 1,000,000 per month while the rest spend between Rp.500,000 to 1,000,000 per month. One woman 42 years old and the rest women more than 65 years of age.

18. Vulnerable Groups. Among the APs from the sub project road, there are 27 households headed by men and 9 households headed by women who are 65 years old or more. Most of them still work as a farmer or running a business and usually live together with their children. Survey results show that none of them have income less than Rp. 500,000 per month.

19. Indigenous People. The villages alongside several links road in Kabupaten Sambas were occupied by a mix by ethnic groups. These are as follows:

Singkawang – Tebas Link People who live alongside the link are mix of Chinese and Melayu (native Sambas ethnic). The Chinese communities have lived there for decades or generations and are now well integrated into the wider socio-economic and cultural community. Most of the Chinese are Konghucu or Christian, while most of the Melayu ethnic are Muslim. Despite their differences, they live in harmony and respect each other. Local people derive income from farming (coconut plantation), while people alongside the road usually run their own business.

Sp3 Tanjung Harapan – Sp3. Galing Alongside this link mainly resided by Melayu and small number Daya ethnic. Melayu ethnic are muslims and Dayak are Christian or Catholic.

Sp3 Tanjung – Sp3. Aruk Alongside this link mainly live the Daya people and a small number of Melayu ethnic from Sp3 Galing. Daya alongside this link have been empowered for more than a decade, and have been integrated into the wider socio-economic and cultural community, while at the same time retaining many aspects of their traditional culture

11 October 2011 4 which are important to them. All of the Dayas in this link are Christian or Catholic and many of them have inter-married with other ethnic groups.

20. These communities, which are considered to have successfully integrated into the broader society. They are now participating in a range of economic activities available, including the predominant one of rubber and coconut oil plantation as a main source of income. This link is at the border with , so most of their basic living needs originate from Malaysia rather than Sambas due to poor road condition. Improvement of this link road will provide better access to market services for local Daya people.

IV. CONSULTATION AND DISCLOSURE

21. During LARP preparation, consultations with AHs were carried out and their suggestions were incorporated in this draft LARP. Meetings were also held with the village and district officials in order to get information about the local government's ongoing or planned development program that can be integrated in this draft LARP.

22. Based on the interviews and consultations held with the APs during the socio- economic survey, the APs are responsive to the upcoming project. Most of the people welcome the improvement and rehabilitation of the road project, especially respondents who live alongside the Singkawang–Tebas link as they have been waiting for this road improvement for a long time and expressed their positive support. Further, they expressed their expectation to receive cash compensation for their affected properties and further expects that they will be given time for restoration of their affected structures prior clearance of land. Socialization was also carried out at Teluk Keramat Sub district and Galing Sub district on 16-17 February 2010. Twenty out of 71 participants who attended the socialization were women. Issues raised were also on compensation. The households further confirmed support towards the project during socialization.

23. Anticipated positive impacts were: improvements for transportation, access to services (education, health and market) and the reduction of travel time are seen as major positive impacts. Right now, many basic living needs for people living in the border (Sajingan Sub Districts) are supplied from Malaysia due to the bad road conditions from Sambas. They also have difficulties selling their agriculture produce to the market due to the bad road and limited public transportation. Improvement of road conditions will provide benefits for farmers.

24. A stakeholder meeting with local officials was undertaken on 29 March 2010. The regional government of Sambas expressed its no objection in funding resettlement cost for this project. However, they mentioned that the Project has to wait for detailed design and should be informed on the overall project schedule. They also agreed on the entitlements and compensation base of the draft LARP when presented to them during the meeting.

25. In September 2011, during the additional surveys carried out, consultations were again held with the affected people along the 3 road links. The people confirmed that they have been informed about the Project and they are waiting for the project to commence.

26. Consultations and discussions will continue to be carried out with the affected households, DGH/Project/Land Acquisition Committee and other stakeholders to inform various stakeholders about the road improvement detailed plans (from detailed design, LARP finalization and implementation schedule and activities), identify concerns and seek feedback from the affected people and concerned groups. Methods to be used during the consultations will include: public meetings, individual interviews, group interviews, and field level observations. All minutes of meetings, photos, attendance sheets will be prepared and recorded.

11 October 2011 5

27. With regard to the disclosure policy of ADB, it is a requirement that key information in this LARP will be disclosed to the affected people prior to ADB Management Review Meeting. Disclosure will be done through the distribution of information leaflets (in local language) to the affected people and copies of leaflets will also be made publicly available in the village offices. The leaflets will include socialization plan, potential impacts and corresponding payment, assistance and mitigation measures, grievance procedures, timing of payments, and implementation.

28. For the indigenous communities, if there are social conflicts among community members, they will be solved where possible using ‘Traditional Law’ rather than ‘Constitutional Law’ (i.e. the State legal system). The Adat leaders and local government officials will have close coordination to ensure that the grievances are heard and satisfactorily addressed following the traditional way or the grievance redress mechanism for this project.

V. GRIEVANCE REDRESS MECHANISM

29. Grievances related to any aspects of the Project will be handled through negotiation aimed at achieving consensus. Depending on the nature of the complaints, the following procedures outline the manner by which grievances will be addressed in the Project.

RELATED TO THE INVENTORY OF AFFECTED ASSETS a. An aggrieved AH may appeal the result of the DMS on affected land and other assets found on the affected land (buildings, plants, other objects) with the district Land Acquisition Committee (LAC). b. If the grievance/complaint has merits, LAC will make necessary revisions/corrections in the DMS. c. If the grievance/complaint concerns ownership/control of land and/or other assets found on the affected land, the LAC will seek a settlement with contending parties through consultation. d. If the consultation does not produce a settlement, the LAC will advise the AH to have the case resolved through the court. e. The LAC keeps record of complaints and disputes handled.

RELATED TO OTHER ASPECTS OF LAND ACQUISITION AND RESETTLEMENT a. First Stage i) An aggrieved AH may bring the grievance/complaint directly to District LAC or through the village chief who will submit it to the LAC either in writing or relay it verbally. ii) The LAC together with the village chief will attempt to seek consensus to achieve an acceptable settlement with the aggrieved AH. iii) If the aggrieved AH does not accept the proffered compensation, the LAC will deposit the compensation money with the court. iv) The LAC is responsible for recording and keeping file of all complaints that it handles.

b. Second Stage i) If the aggrieved AH is not satisfied with the decision of the LAC, it may bring the grievance, either in writing or verbally to the Regent of the district (Bupati)

11 October 2011 6 accompanied by an explanation on the causes and reasons for the objection within a period of 14 days from the issuance of the decision of the LAC in the First stage. ii) The Bupati will decide on the complaint within a period of 30 days. iii) Before deciding on the case, the Bupati may request for opinions/wishes from (i) the aggrieved AH; (i) the LAC; and (iii) the DGH. iv) The Bupati decision will be delivered to the aggrieved AH, the DGH, and District LAC. v) The Bupati’s office is responsible in documenting and keeping file of all complaints that it handles.

c. Third Stage i) If after 30 days, no decision to the complaint is made or if the aggrieved AH is not satisfied with the decision taken by the Bupati, it may bring the complaint/case to the governor. ii) The Governor will decide on the complaint within a period of 30 days. iii) The Governor, before making decision or settlement, may request the opinions/wishes of (i) the aggrieved AH, (i) the LAC, and (iii) DGH. iv) The Governor’s decision on the complaint will be delivered to the aggrieved AH, the DGH, and district LAC. v) The Governor’s office is responsible in documenting and keeping file of all complaints that it handles 30. If after 30 days, no decision to the complaint is made or if the aggrieved AH is not satisfied with the decision taken by the Governor, it may bring the complaint/case to the court for adjudication.

VI. LEGAL AND POLICY FRAMEWORK

A. Relevant Laws and Regulations In Indonesia

31. The key legal instruments currently in force in Indonesia that are most relevant to involuntary resettlement are Presidential Regulation No. 36/2005, entitled “Provision of Land for Realizing the Development for Public Interests”, as amended by Presidential Regulation No. 65/2006, entitled “On Land Acquisition for Development Purposes in the Public Interest”, and National Land Agency (BPN) Regulation No. 3/2007 on Land Acquisition Implementation Guideline for Presidential Decrees 65/2006 and 36/2005. Superseding Presidential Decree No. 36/2005 that earlier amended Presidential Decree No. 55/1993, the 2006 Presidential Regulation provides for various forms of compensation for private assets needed to pursue Government development projects.

32. The Presidential Decrees and the National Land Agency (BPN) Regulation No. 3/2007 mandates that land acquisition, including determining levels of compensation, for public development projects would be carried out by the Land Acquisition Committee (LAC) of the district or city with the issuance of a decree by the regent or mayor. Where such authority crosses district boundaries within a single province, land acquisition would be carried out by the provincial government. Additionally, the BPN Regulation No. 3/2007 provides further detail on the membership of the committee and scope of works in land acquisition including conducting inventory of losses, consultation meetings, determining compensation rate, and recording the land acquisition process. . Other laws and regulations that have bearing on resettlement are Land National Agency circulation letter No. 3127/15.1- 300/VII/2009, which determines the compensation rate; National Land Agency Regulation No. 1/2010, which regulates the timeframe for the certification of the remaining land after compensation payment; Road Law No. 38/2004, which recognizes people occupying State land (Tanah Negara),including squatters; and Act No. 9/2009 on Food Security, which

11 October 2011 7 requires any party acquiring productive land to provide land replacement three times bigger than the acquired productive land.

B. ADB Policies

33. The new ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies: involuntary resettlement (IR), indigenous peoples (IP), and environment. The objectives of the IR policy are to (i) avoid involuntary resettlement, (ii) explore alternatives to avoid, (iii) restore livelihoods and (iv) improve living standards of poor and vulnerable households. The IP policy objectives are to (i) design and implement projects that fosters full respect for IP's identity, dignity, human rights, livelihoods systems, and cultural uniqueness as defined by IP themselves and (ii) ensure that IPs receive culturally appropriate social and economic benefits, do not suffer adverse impacts as a result of projects, and can participate actively in projects that affect them. The policy on environment is discussed in a separate environment report.

34. The ADB Policy on Gender and Development (1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate in and that their needs are explicitly addressed in the decision-making process for development activities. The new safeguard policy and requirements also reiterates the importance of including gender issues in the preparation of safeguards documents at all stages to ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights and restoration/improvement of their living standards; and to ensure that women will receive project benefits. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005), and (ii) Accountability Mechanism (2003).

C. Gaps Analysis and Project Principles

35. The main limitation of Presidential Decree No. 65/2006, the applicable provisions of Presidential Decree No. 36/2005 and The National Land Agency Regulation No. 3/2007 lies on the fact that they have not been conceived and planned to address involuntary resettlement. Said regulations are concerned, more than anything else, with acquiring in the most expeditious way properties needed for the right-of-way (ROW) of government projects. But as acquisition and/or clearing of project ROW may involve displacement of people from both material and non-material assets, these people, most of whom are already poor to begin with, are at risk of further impoverishment in the form of landlessness, joblessness, homelessness, economic marginalization, increased morbidity and mortality, food insecurity, loss of access to common property, and disintegration of community and social ties and organizations. Certainly, existing laws and policies on land acquisition cannot address these risks.

36. With regard comparison of Indonesian Law and regulations and ADB policies, to begin with, the two are not similar. Indonesian laws and regulations on property acquisition for ROW are principally an exercise of the State power of eminent domain. In the acquisition process, government agencies invoking the State power of eminent domain are guided by other laws and regulations pertaining to ownership over the acquired assets and the level of compensation to be provided. Existing financial and auditing procedures must be followed, notwithstanding the fact that the affected property is not being acquired by Government on a “willing seller – willing buyer” situation. Moreover, the focus of the acquisition activity is the object to be acquired; the social situation of the person to be dispossessed of an asset is not considered in the whole transaction.

37. On the other hand, the focus of ADB Safeguard Policy Statement is the person or

11 October 2011 8 household who face socioeconomic and/or physical displacement. Concerns are raised on whether or not acquiring an asset for the project ROW, regardless of the tenure status of the household, would adversely impact the DP’s current living standards. Questions on whether such acquisition would put the DP at risk of impoverishment and on whether it would bring in an opportunity for the DP to improve its present status are asked. Thus, ADB Safeguard Policy Statement seeks to restore the pre-project living standard of the DP through the replacement of lost assets in conjunction with other measures that are all aimed at improving the socioeconomic conditions of the poor and vulnerable households.

38. Table below lists down the gaps between existing Indonesian laws and regulations and ADB Safeguard Policy Statement and how these gaps will be addressed. Table 4: Gap Analysis and Gap Filling Measures Government ADB Policy Project Policy Provision on calculation basis The rate of compensation will The Project will engage a for compensation of land does be calculated at full qualified appraiser to ensure not clearly refer to the principle replacement cost. that price of land are based on of replacement cost. the principle of replacement Presidential Regulation states Qualified and experienced cost. that the land price refers to the experts will undertake the NJOP (Nilai Jual Obyek Pajak valuation of acquired assets. Qualified and experienced or the appraised taxable value experts will undertake the of the land) or market price by valuation of acquired assets. considering the current NJOP which is often lower than prevailing market price. Thus, many local governments pay compensation for land in accordance with the NJOP price or in between NJOP and market price. Also, current laws do not require the acquiring government agency to shoulder transaction costs in the acquisition of private land. Government auditing policies The rate of compensation will Compensation at full compel Executing Agencies not be calculated at full replacement cost for structures. to compensate at replacement replacement cost. There will be no depreciation rates for affected fixed assets, Qualified and experienced and deduction of salvageable such as buildings. The value of experts will undertake the materials. the affected asset, even if lost valuation of acquired assets. involuntarily, is depreciated Qualified and experienced based on the condition of the experts will undertake the asset valuation of acquired assets. Severely affected and relocating Ensure that displaced persons Poor and vulnerable groups households, poor and without titles to land or any have been identified; impacts vulnerable households and recognizable legal rights to land and their vulnerability have households on government land are eligible for resettlement been identified and will be affected due to loss of land, assistance and compensation mitigated in this LARP. The loss of income or shelter are for loss of non-land assets. Project will ensure their provided assistance on a case- Pay particular attention to the participation in consultations. by –case basis. needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and indigenous peoples.

39. It is because of the limitations of and gaps in law that could comprehensively address the complex social issues attendant to ROW acquisition that the Project policies in this LARP

11 October 2011 9 have been adopted based on the ADB Safeguard Policy Statement (2009).

40. The core principle of the Project Policy is anchored on the philosophy that ADB safeguards policies and Government development projects must serve the public good and that, in the design and implementation of such projects, all efforts will be exerted to help ensure that APs are not worse off. Moreover, the Project should provide an opportunity for the local population to derive benefits from it. Likewise, the Project should serve as an occasion for the local population to participate in its planning and implementation, thereby engendering a sense of ownership over the Project, subprojects and other components. Towards this end, the Implementing Agency will endeavor to carry out the Project and any of its subprojects and components based on the following principles:

a. Involuntary resettlement and impacts on land, structures and other fixed assets will be minimized where possible by exploring all alternative options. b. Compensation will be based on the principle of replacement cost at the time of compensation. c. Affected persons without title or any recognizable legal rights to land are eligible for resettlement assistance and compensation for non-land assets at replacement cost. d. Meaningful consultation will be carried out with the affected households and concerned groups and ensure participation from planning up to implementation. The comments and suggestions of the APs and communities will be taken into account. e. Grievance mechanism will be established to address concerns and issues raised by the APs f. Improve, if not, restore the livelihoods of affected people through various income restoration strategies and prompt replacement of assets g. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. h. Provide special assistance to the poor and vulnerable households such as legal and affordable access to land and resources, appropriate income sources and legal and affordable access to adequate housing. i. A set of procedures on transparency and consistency will be adopted if land acquisition will be done through negotiated settlement to ensure that APs will be able to maintain same or better socio-economic status. j. The draft, final and any updates on the LARP will be disclosed to APs and indigenous households in a form and language(s) understandable to them prior to submission to ADB. k. Resettlement identification, planning and monitoring will ensure that gender concerns are incorporated. l. Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as indigenous households, households headed by women, children, disabled, the elderly, landless and people living below the generally accepted poverty line. m. Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved. This includes host population. n. Culturally appropriate and gender-sensitive social impact assessment, planning, and monitoring will be carried out in various stages of the project.

11 October 2011 10 o. PMU will not award a civil works contract until the head of district government has officially confirmed in writing that (i) payment has been fully disbursed to the affected persons and rehabilitation measures are in place as per Final LARP agreed between DGH and ADB; (ii) already-compensated affected persons have cleared the area in a timely manner; and (iii) the area is free from any encumbrances. No land acquisition or site clearing will be done until and after the Final LARP has been agreed between DGH and ADB.

VII. PROJECT ENTITLEMENTS

41. The cut-off-date of eligibility refers to the date prior to which the occupation or use of the project area (i.e., area within the COI) makes residents/users of the same eligible to be categorized as AP and be eligible to Project entitlements. The date has to be disclosed to each affected village by the relevant local governments and the villages have to disclose it to the communities. The establishment of the eligibility cut-off date is intended to prevent the influx of ineligible non-residents who might take advantage of Project entitlements. For this Project, official announcement on the cut-off date will be done following the completion of detailed design. DGH, through the district office, will issue an official announcement on the cut-off-date by media announcement (local TV and radio), disseminating copies of the official announcement in local language to the communities and by posting copies at the village offices or public places. DGH will also record the current settlement along the project area through video or photo recording. Village meetings will also be carried out, minutes of meeting and attendance of participants will be prepared to confirm announcement of cut-off date by the local authorities.

42. The entitlements below are based on potential resettlement impacts and corresponding compensation and assistance to the APs, regardless of tenure status. Entitlements adopted are based on central and local decisions, ADB-funded project in Indonesia and as per policy principles of ADB Safeguard Policy Statement. It should be noted that actual impacts can only be determined based on census and detailed measurement survey. The entitlement matrix of this draft LARP may be revised to reflect the relevant changes but the standards set in the draft LARP entitlement matrix cannot be lowered when the resettlement plan is finalized. Resettlement implementation will not commence until DGH and ADB agree on the Final LARP.

Table 7: Entitlement Matrix Type of Eligible Persons Entitlements Loss/Impacts Loss of Land Owners with Compensation in cash at replacement based on certificate/non- current market value which is derived from recent land certificate land 3 sales in the area. Affected households will be (legalizable) exempt from paying transaction costs (administration cost and taxes). No. of APs = 241HHs + 1 health The local government will pay for the land certification clinic + 1 bank+1 cost. (Rp.500,000/certificate) school+1 institution (LPM) Impacts on Shops Owners with Cash compensation based on replacement cost which and Fixed Assets certificate/non- is equivalent to current market value of structures and certificate land labor without application of depreciation and without (legalizable) deduction for salvageable materials. Owners will be allowed to take salvageable materials.

3 Non-certificate land (SKT/Girik) is issued by Head of Sub District or Head of Village. It falls under "customary right. It is common practice that during land acquisition process, "non-certification land" are upgraded as "certification land", and certification cost will be shouldered by the Government.

11 October 2011 11 Type of Eligible Persons Entitlements Loss/Impacts No. of APs = 198 HHs* + 1 health As for the utilities such as water and electricity, clinic + 1 bank +1 owners will be compensated based on cost of removal school + 1 institution and installation of said utilities. Any utilities (eg. water (LPM) meters or water pipes) that will be fully damaged and can no longer be re-installed will be compensated at replacement cost. Owners on ROW Cash assistance based on replacement cost which is land equivalent to current market value of structures and labor without application of depreciation. Owners will No. of APs = 30 be allowed to take salvageable materials. HHs** As for the utilities such as water and electricity, owners will be compensated based on cost of removal and installation of said utilities. Any utilities (eg. water meters or water pipes) that will be fully damaged and can no longer be re-installed will be compensated at replacement cost. Temporary Shop owners It is estimated that 120 shops may require 2 to 5 days disruption of to repair shop. business during No. of APs = 133 relocation Average net income of shop per day is Rp50,000 multiplied by the number of days of disruption (Rp. 250,000/shop owner) Impacts on Crops Owners regardless Trees and crops will be based on replacement cost and Trees of tenure status which is equivalent to age, type, and productive value.

No. of APs= 0 Households will be given timely notice in order for them to harvest their crops. Loss of, or Local government. To be restored and relocated in accessible areas or damage to Public Cash compensation based on current market value of Facilities No. of APs = 0 facilities (including removal and transfer) to replace affected assets. Higher risks of Vulnerable Those who will require relocation of shops or fixed hardship due to households structures will be provided easier access to materials project impacts No. of HHs and provision of labor, as needed. Assistance may be due to impacts on =27elderly + 1 HH in cash or in kind. The needs of vulnerable groups will house and shops headed by a woman be assessed during LARP finalization. Impacts during To be determined • Contractors will be responsible for paying rental in Construction during construction cash for land outside the ROW which will be no less than the net income that would have been derived from the affected property during disruption. Restoration of land will done immediately after use. • Non-land assets within the residual area of the ROW will be replaced through in-kind support while those outside of the ROW that are adversely impacted by construction activities will be compensated in-kind or cash at replacement cost by the civil works contractor. * Of the 254 households with land and non-land certificate, 62 households have affected land without structures/fixed assets (254 - 62 = 192 HHs). ** 3 HHs who are on ROW have affected structures.

VIII. LARP COST ESTIMATES

43. The unit rates below are based on information gathered from the field at the time of LARP preparation. The rates have been used for cost estimates only and will be adjusted following the conduct of replacement cost survey during the finalization of the LARP.

11 October 2011 12

44. Affected land. The unit rates were derived from the sub-district and households in the area. The local banks do not have information on the market value of land. Please note that these are cost estimates only and will be adjusted to reflect current market prices at the time of payment.

Table 8: Cost Estimates for Affected Land

Land (M2) No of Beginning Affected % Market Total No Village AHs affected Price/M2* Compensation Singkawang-Tebas 1 Jawa 14 5.506.00 390.00 7.08% 800.000 312.000.000 2 Sei Wie 1 2.400 50. 2.08% 800.000 40.000.000 3 Pemangkat Kota 58 30.782 1.484.2 4.82% 100.000 148,400,000 4 Harapan Private 53 12.749 587.6 4.61% 58.755.000 Institution 1 700 21.0 3.00% 2.100.000 5 Penjajap 39 8.282 486.25 5.87% 48.625.000 6 Prapakan 4 1.530 58 3.79% 100.000 5.800.000 7 Semparuk 15 3.085 182.8 5.925 18.275.000 8 Singaraja 11 2.292 145 6.33% 14.500.000 9 Segedong 34 54.548 1.001.1 1.84% 100.105.000 Sp.3 Tj.Harapan – Galing 10 Tj.Harapan 1 350 80 22.85% 100.000 8.000.000 11 Galing 2 700 50 7.14% 5.000.000 Sp.3 Tanjung – Aruk 12 Kaliau 12 7.740 175.8 2.27% 50.000 8.790.000 Total 245 130.664 4,711,75 3,61% 458.662.000 Source : Consultant Survey, Note: * based on the survey and informal information from Head of each affected village

45. Affected Shops and secondary structures/fixed assets. For affected buildings and other affected properties (fences, terrace, structure foundation, roof etc) an estimate for compensation is given based on calculation using actual current market prices of materials and actual cost of labor for dismantling and rebuilding. The rates were derived from Dinas Pekerjaan Umum of Sambas District 2009. These rates are used as basis for private businesses or construction suppliers to issue their market prices. There is no depreciation applied for the structures or deductin for salvageable materials. At the time of LARP preparation, the district has yet to establish 2010 rates. For budget purposes, 2009 rates will be used. The additional assets identified in 2011 used 2009 rates for budget purposes. During LARP finalization, the rates will be adjusted to reflect current market prices at the time of compensation.

Table 9: Cost Estimates for Structures and Fixed Assets Total Unit Price Compensation No. Type of Structure Affected (m2) (Rp) (Rp) 1 Permanent Structure 48 2.440.000 117.120.000 2 Semi Permanent Structure 128.75 1.720.000 221.450,000 3 Temporary Structure 1.055.25 965.000 1.018.316.250 4 Wall Fence 787.16 585.000 460.488.600 5 Wooden Fence 250 50.000 12.500.000 6 Permanent Terrace 169.15 1.040.000 175.916.000 7 Semi Permanent Terrace 315.75 912.000 287.964.000 8 Temporary Terrace 10 510.000 5.100.000 Total 2.077.626.300

11 October 2011 13 46. Disruption of Business / Temporary loss of income. There are 133 businesses that will be partially affected. It is estimated that the business/shops will be disrupted during restoration. Average net income of shop is Rp50,000/day. Cost estimates for assistance for temporary loss of income is Rp. 31,500,000.

47. Vulnerable Groups. On vulnerable households, 27 elderly households and 9 household headed by women, the district committee will give particular assistance during restoration of their affected properties, such as easy access to get materials and labor, if needed. The project staff and external monitor will ensure that all of the vulnerable households will get all of information easily and receive all of their compensation prior to clearance of land.

48. For protecting ROW land, the prohibition sign for using acquired land will be installed in several strategic point alongside the road link. Estimated cost for one prohibition sign is about Rp. 500,000 and will be installed + 10 units. Total estimated cost is 5,000,000.

49. In summary, cost estimates for resettlement is Rp. 3,497,610,375 (US$ 376,087) as shown in Table 10 below. It includes cost for engaging an external monitor, contingency and administration cost. The administration cost of 15% is applied for budget purposes only.

Table 10: Summary LARP Cost Estimates Item Qty Cost Estimates (Rp) Affected Land 4.711,75 m2 458.662,000 Affected Structures and fixed assets various 2.077.626.300 Loss of income Compensation 126 shop owners 31,500,000 Installation of ROW signs 10 units 5,000,000 Certification cost 225 certificates 112,500,000 Sub-Total 2,685,288,300 Contingency (10%) 268,528,830 Admin Cost (15%) 402,793,245 External Monitoring Team LS 141,000,000 Total LARP Cost Estimates 3,497,610,375

11 October 2011 14 IX. IMPLEMENTATION ARRANGEMENTS

A. Executing and Implementing Agencies

1. Directorate General of Highways

50. The Directorate General of Highways of the Ministry of Public Works is the Executing Agency for this Project. DGH will establish a project management unit (PMU) headed by a manager (PMU head) with experience in externally financed projects. PMU staff will be responsible for the day-to-day implementation and be accountable for technical, safeguards, and financial reporting. DGH has an office responsible for social and environment called Sub Directorate of Technical Affairs and Road Safety. The Sub Directorate of Technical Affairs and Road Safety will work closely with the PMU specific to safeguards requirements and activities.

2. District Government

51. The Decree of the Head the National Land Agency No.3/2007 on Mechanism, Norms and Standards for Government Authority and Management of Agrarian Affair, stipulates that land acquisition and resettlement will be executed by the Committee established by Governor, or Bupati (Regent). The Land Acquisition Committee includes Representatives of Land Office, Agriculture Office, The Head of District and Village, and two Secretaries. The Committee has an authority to conduct an inventory of affected land assets, negotiate with the property owners together with the government agency acquiring the land, to estimate the amount of compensation, and to document anything that may have a bearing on individual resettlement plans. A Land Acquisition and Resettlement Committee and Land Appraisal Team will be convened during loan implementation.

52. The Office of the Bupati will provide the main workforce in the preparation and implementation of the LARP. The Bupati will have the following functions: (i) organize the committee for resettlement by way of a Decree; (ii) issue a local regulation on the unit costs of affected assets based on replacement cost and/or market rates; (iii) issue a local regulation with regard to assistance to informal settlers on ROW or state land; (iv) manage and disburse the funds with regard to compensation, assistance and administration costs; and (v) assist in the expeditious and judicious resolution of complaints of APs. The office of the Bupati will work closely with the PMU staff.

B. Mobilization of Design Supervision Consultants

53. The Design Supervision Consultants (DSC) will be composed of one international resettlement consultant and a team of domestic resettlement consultants to assist DGH and the local authorities in the finalization and implementation of the Final LARP. The DSC resettlement consultants will also assess the capacity of the implementing agencies and provide the necessary capacity building interventions (such as orientation, workshops, on- the-job training). The local officials together with the DSC will carry out replacement cost survey for land and non-land assets. The results of the replacement cost survey will be applied and will be reflected in the Final LARP. The Project may also engage a qualified appraiser to carry out its independent valuation of non-land assets. Qualified appraisers are usually hired if there are no qualified appraisers in the design supervision consultants.

11 October 2011 15 X. MONITORING AND EVALUATION

A. Internal Monitoring

54. The PMU will serve as the Project’s internal monitoring body. Quarterly reports will be submitted to DGH starting from the commencement of LARP finalization, which coincides with the conduct of the census, detailed measurement survey and other LARP activities. The PMU will include updates on resettlement in its regular progress reports to ADB. These progress reports will be submitted to ADB for web posting.

55. Internal monitoring and supervision will have the following objectives:

a. Compensation and/or other entitlements are provided as per Final LARP, with no discrimination according to gender, vulnerability, or any other factor; b. Livelihood restoration measures are designed and implemented including modifications in the programs and provision of additional cash and in-kind assistance to the participating affected households as and when necessary; c. Public information, public consultation and grievance redress procedures are followed as described in the Final LARP; d. Capacity of APs to restore/re-establish livelihoods and living standards. Special attention given to severely affected and vulnerable households. e. Affected public facilities and infrastructure are restored promptly; and f. The transition between relocation or site clearing and commencement of civil works is smooth and that sites are not handed over for civil works until affected households have been satisfactorily compensated, assisted and relocated.

B. External Monitoring and Evaluation

56. An external monitoring and evaluation group will be mobilized one month prior to commencement of DMS activities. The group can be from a good reputable research or consulting agency, university, or development NGO.

57. The main objective of external monitoring is to provide an independent periodic review and assessment of (i) achievement of resettlement objectives; (ii) changes in income, living standards and livelihoods; (iii) restoration and/or improvement of the economic and social base of the affected people; (iv) effectiveness and sustainability of entitlements; and (v) the need for further mitigation measures. 58. Strategic lessons for future policy formulation and planning will also be drawn from the monitoring and evaluation of resettlement. This is possible through a Post-Resettlement Implementation Evaluation Study that will be carried out carry out 6-12 months following completion of all resettlement activities. 59. Relative to compliance monitoring during resettlement implementation, the main activities of the external monitor will revolve around the following: (i) review existing baseline data and gather additional socio-economic information, as necessary, on sample affected households; (ii) monitor preparation and implementation of the LARP; (iii) identify any discrepancy between policy requirements and actual implementation of resettlement; (iv) monitor the resolution of complaints and grievances of affected households; (v) provide recommendations for improving resettlement preparation and implementation; and (vi) review compliance with regard to use funds for land acquisition and resettlement. 60. The external monitoring activities will be conducted on a semi-annual basis. Semi- annual reports will be submitted to PMU and ADB. The cost of the activities will be included in the project cost.

11 October 2011 16 XI. IMPLEMENTATION SCHEDULE

61. Finalization of the Draft LARP. As the preparation of this draft LARP is based on preliminary design, the information contained in this LARP are preliminary and estimates only. During loan implementation, there is a need for this LARP to be finalized based on detailed design. Census and detailed measurement survey will be carried out during finalization of the LARP. As mentioned in the earlier sections of the LARP, the unit rates will be updated and finalized based on the replacement cost survey. Table 11 shows the information required during DMS and RCS.

Table 11: Detailed Measurement Survey and Replacement Cost Survey Detailed The census and detailed measurement survey (DMS) of lost assets will collect data on the Measurement affected assets from 100% of APs following detailed engineering design. The data collected Survey (DMS) during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation. For each AP, the scope of the data will include: • Total and affected areas of land, by type of land assets; • Total and affected areas of structures, by type of structure (main or secondary); • Legal status of affected land and structure assets, and duration of tenure and ownership; • Quantity and types of affected crops and trees; • Quantity of other losses, e.g., business or other income, jobs or other productive assets; estimated daily net income from informal shops; • Quantity/area of affected common property, community or public assets, by type; • Summary data on households, by ethnicity, gender of head of household, household size, primary and secondary source of household income viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, poor or indigenous peoples; • Identify whether affected land or source of income is primary source of income; and • AP knowledge of the subproject and preferences for compensation and, as required, relocation sites and rehabilitation measures. Replacement The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by Cost Survey collecting information from both secondary sources and primary sources (direct interviews with people in the affected area, material suppliers, house contractors), and from both those affected and those not affected. The government rates will be adjusted, as necessary, based on the findings of a RCS. Compensation rates will be continuously updated to ensure that APs receive compensation at replacement cost at the time of compensation payment.

62. The Project is scheduled to be approved on the 4th Quarter of 2011. Loan implementation will commence in January 2012. In terms of LARP finalization and implementation activities, the table below presents important milestones.

Table 12: Implementation Schedule No Activity Schedule During Loan Processing 2009-2010 Preparation of Draft Resettlement Plan based on initial design* 2009-2010 Disclosure of key information in the LARP 2010 and 2011 Detailed Design** Jan – Sep 2010 During Loan Implementation Finalization of Draft LARP based on Detailed Design Establishment of Land Acquisition Committee / Appraisal Team Jan/Feb 2012 Mobilization of External Monitor February 2012 Socialization and Consultation Feb - June 2012 Census and Detailed Measurement Survey Feb - May 2012 Replacement Cost Survey to update current market value of land and March-April 2012 non-land assets Finalize LARP, disclose key information of the final LARP to the affected June 2012 people, and submit to ADB for review and concurrence ADB reviews and sends concurrence on Final LARP June/July 2012 ADB uploads Final LARP on ADB website July 2012 B. Resettlement Implementation as per Agreed Final LARP Commence payment of compensation October – November 2012 Protection of acquired land November 2012

11 October 2011 17 C Other LARP Implementation Activities Monitoring (From LARP Finalization to Implementation) Internal Monitoring (quarterly reporting) February 202 onwards External Monitoring (quarterly reporting) February 2012 - onwards Grievance Redress Feb 2012 – onwards Uploading of monitoring reports February 2012 - onwards D Civil Works 2013 * During Project Preparation Technical Assistance (PPTA) ** Detailed design is being carried out by DGH and it is not part of the tasks of the TA consultants.

63. PMU will not award a civil works contract until the head of district government has officially confirmed in writing that (i) payment has been fully disbursed to the affected persons and rehabilitation measures are in place as per Final LARP agreed between DGH and ADB; (ii) already-compensated affected persons have cleared the area in a timely manner; and (iii) the area is free from any encumbrances.

11 October 2011 18