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53376-001: DBL Highway Project Social Compliance Audit Report Project Number: 53376-001 October 2020 IND: DBL Highway Project Prepared by Setu Resources and Livelihoods Solutions Pvt Ltd. The social compliance audit 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 judgments as to the legal or other status of any territory or area. Final Report Social Audit for Widening of Anandapuram-Pendurthi- Anakapalli Highway Submitted to DBL Anandapuram-Anakapalli Highways Pvt Ltd Prepared By Setu Resources and Livelihoods Solutions Pvt Ltd October, 2020 Table of Contents Table of Contents ....................................................................................................................... ii Abbreviations ............................................................................................................................. a Executive Summary .................................................................................................................... i I. Project Background ........................................................................................................ 1 A. Overview ...................................................................................................................... 1 B. Project Description ...................................................................................................... 1 C. Objective and Scope of Assignment ............................................................................ 4 D. Approach and Methodology ........................................................................................ 4 II. Applicable Legal and Policy Framework ....................................................................... 9 A. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 ................................................................................................... 9 B. National Highway Act, 1956 ..................................................................................... 10 C. Andhra Pradesh RFCTLARR Rules, 2014 ................................................................ 11 D. Andhra Pradesh Government Order on Resumption of Assigned Lands .................. 11 E. ADB’s Safeguards Policy Statement, 2009 ............................................................... 11 F. Comparison of Government and ADB Policies ......................................................... 12 III. Assessment of Land Acquisition and Resettlement process ........................................ 13 A. Background ................................................................................................................ 13 B. Overview of Land Acquisition Process ..................................................................... 14 C. Assessment of process and adequacy of market valuation for loss of land ............... 17 D. Assessment of market valuation for loss of structures owned by titleholders ........... 18 E. Assessment of market valuation for loss of trees ...................................................... 21 F. Compensation for other immovable assets ................................................................ 22 G. Compensation to Non-Titleholders ............................................................................ 23 H. Rehabilitation and Resettlement assistance ............................................................... 24 I. Arbitration and Litigation .......................................................................................... 25 J. Gap Assessment, Compliance with ADB SPS and Closure Measures ...................... 25 IV. Land Acquisition and Resettlement Impacts ............................................................... 29 A. Land requirement ....................................................................................................... 29 B. Land Acquisition Timeline ........................................................................................ 29 C. Overall Project Affected Persons and Compensation Disbursement Status .............. 30 D. Pending Land Acquisition ......................................................................................... 32 E. Existing encumbrance/encroachment within RoW ................................................... 33 F. Summary of land acquisition and resettlement impacts ............................................ 38 V. Socio Economic Survey and Stakeholder Consultations ............................................. 41 A. Socio-economic profile .............................................................................................. 41 B. Stakeholder Consultations ......................................................................................... 41 VI. Livelihood Restoration Measures and Way Forward .................................................. 46 A. Gaps identified ........................................................................................................... 46 B. Key Principles for gap closure ................................................................................... 47 C. Compensation payment and information gap closure ............................................... 48 D. Livelihood Restoration Measures .............................................................................. 49 E. Budget and Financing Plan ........................................................................................ 51 F. Stakeholder consultation, participation and disclosure strategy ................................ 53 G. Grievance Redressal Mechanism ............................................................................... 56 H. Institutional Arrangement .......................................................................................... 59 I. Implementation Plan .................................................................................................. 63 J. Monitoring, Reporting and Audit .............................................................................. 65 Appendices ............................................................................................................................... 68 Appendix 1: Impact profile of affected structures existing within RoW ............................. 68 Appendix 2: Socio-economic profile of project affected households .................................. 71 Appendix 3: Details of Notifications issued under section 3A, 3D, 3G of NH Act, 1956 .. 80 Appendix 4: Compensation Disbursement Status................................................................ 87 Appendix 5: 3D Notification on details of missing land plots in 15 villages ...................... 90 Appendix 6: Village wise number of arbitrations ................................................................ 91 Appendix 7: Assessment of Land Compensation Rate ........................................................ 92 Appendix 8: Sample of Structure valuation sheet prepared by R&B department ............... 94 Appendix 9: Market valuation of Impacted Structure ......................................................... 99 Appendix 10: Sample Public Notice as per section 3G of NH Act ................................... 101 Appendix 11: Sample notification under section 3E of NH Act ....................................... 102 Appendix 12: Comments on MoRTH/NHAI’s responsibility against Second Schedule provisions of RFCTLARRA .............................................................................................. 103 Appendix 13: Terms of Reference for NGO to be hired for implementation of livelihood restoration measures........................................................................................................... 108 Appendix 14: Monitoring templates for status of compensation disbursement ................ 112 Abbreviations ADB Asian Development Bank AP Andhra Pradesh APRDC Andhra Pradesh Road Development Corporation BHS Both hand side BPL Below Poverty Line CALA Competent Authority for Land Acquisition COD Commercial Operation Date CSR Corporate Social Responsibility DBFOT Design, Build, Finance, Operate and Transfer DIS Deputy Inspector of Survey DPR Detailed Project Report EHS Environmental, Health & Safety EPF Employees Provident Fund ESIC Employees State Insurance Corporation FSR Forest Schedule of Rates GRM Grievance Redressal Mechanism IFC International Finance Corporation ILO International Labour Organization IOL Inventory of Loss IR Involuntary Resettlement LA Land Acquisition LHS Left Hand Side LRP Livelihood Restoration Plan MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act MoRTH Ministry of Road Transport and Highways MRO Mandal Revenue Officer NGO Non-Governmental Organization NH National Highway NHAI National Highway Authority of India OBC Other Backward Classes PAP Project Affected Persons PHC Public Health Center a PRA Participatory Rural Appraisal PVC Polyvinyl Chloride R&B Roads and Buildings R&R Rehabilitation and Resettlement RAP Resettlement Action Plan RCC Reinforced Cement Concrete RFCTLARR Right to Fair Compensation and Transparency in Land Acquisition,
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