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RP543

REPÙBLICA DA ANGOLA

Public Disclosure Authorized

MINISTÈRIO DE AGRICULTURA E DESENVOLVIMENTO RURAL

Public Disclosure Authorized MARKET-ORIENTED SMALLHOLDER AGRICULTURAL PROJECT

RESETTLEMENT POLICY FRAMEWORK

Public Disclosure Authorized

DRAFT FINAL REPORT

Public Disclosure Authorized

March 21, 2007 List of Abbreviations

AESDU Agriculture, Environment & Social Development Unit (of the WB) AP Affected person CMAC Conselho Municipal de Auscultação e Concertação CPAC Conselho Provincial de Auscultação e Concertação ECB Estrategia de Combate de Pobreza EDA Estação de Desenvolvimento Agricola EIA Environmental Impact Assessment IDA Instituto do Desenvolvimento Agricola IDA International Development Agency IGCA Instituto Geografico Cadasrto da Angola GoA Government of Angola MINADER Ministèrio da Agricultura e Desenvolvimento Rural MINUA Ministèrio de Urbanismo e Ambiente MOSAP Market –oriented Smallholder Agricultural project NGO Non-governmental Organisation OP Operational Directive (4.12) of the World Bank RAP Resettlement Action Plan RPF Resettlement Policy Framework WB World Bank

Persons consulted

S.no. Name Position Institution 1 Claudio Chalule Julio Advisor to the MINADER Minister, MINADER 2 Carolino S.Cassule Jose Agronomist Direcção Prov. De Agric. Huambo 3 Dibanzilua Nginamau Agronomist Inst. De Invest. Agronomìca,Huambo 4 Vladimir Russo Ecologist Ecological Youth of Angola 5 Bernardo Jamba Chefe de Secretaria Comuna do Alto Hama,Londuimbali. 6 Joaqim Faustino Tecnico EDA-Londuimbali

7 Emeterio.O.C.Tiago Chefe de IDA,Provincia de Huambo Departamento 8 Jose Cambedje Supervisor IDA, Huambo 9 Alberta Gomes Director ADRA, Huambo 10 Fritz Ohler FAO TABLE OF CONTENTS

Section Subsection Description Page No. Executive summary i 1 INTRODUCTION 1 2 BACKGROUND AND PROJECT 1 DESCRIPTION 2.1 Background 1 2.2 Project Components 2 2.3 Selection, preparation, review and approval of 5 Sub-project RAP 3 IMPACTS, LAND ACQUISITION AND 5 RESETTLEMENT 3.1 Estimated Population displacement and likely 5 categories of affected persons 3.2 Potential impacts 6 3.3 Land acquisition 6 3.4 Involuntary resettlement 7 3.5 The MOSAP RPF 9 4 PREPARATION, REVIEW AND APPROVAL 9 OF A SUB-PROJECT RAP 4.1 Determining when resettlement planning is 9 needed. 4.2 Voluntary Land donations in sub-projects 10 4.3 Planning for involuntary resettlement 11 4.4 Institutional framewok 12 4.5 Baseline survey and asset inventory. 13 4.6 Assigning affected people different asset 14 categories 4.7 Determining elibility for compensation 14 4.8 Valuation methodology and calculation of cost 14 of compensation 4.9 Preparation of draft RAP report 14 4.10 Procedure for reviewing, approving, and 14 disclosing the RAP 4.11 Preliminary tasks 15 4.12 Training 15 5 LEGAL FRAMEWORK 16 6 ELIGIBILITY CRITERIA FOR VARIOUS 17 CATEGORIES OF AFFECTED PEOPLE 6.1 Cut-off date 17 6.2 Eligibility criteria for entitlements 17 7 VALUING AFFECTED ASSETS 19 8 ORGANIZATION, PROCEDURES, AND 21 RESPONSIBILITIES FOR IMPLEMENTING A RAP 8.1 Integration of the RAP into the overall Sub- 21 project Plan 8.2 Determination of entitlements 21 8.3 Entitlement agreement contracts. 21 8.4 Replacement land 22 8.5 Compensation 23 8.6 Confirmation of receipt of entitlements 23 8.7 Progress monitoring and reporting 23 9 CONSULTATION WITH, AND 24 PARTICIPATION OF, AFFECTED PERSONS 9.1 Consultation with affected people 24 9.2 Grievance redress mechanisms 24 10 MONITORING ARRANGEMENTS 24 11 PROGRAMMING AND SCHEDULING 25 12 FUNDING AND INDICATIVE BUDGET 26 ANNEXURES 28 1 Number of beneficiaries by Province, 28 Municipalities and communes 2 Broad categories of affected persons eligible to 29 receive benefits 3 Proposed Entitlement Matrix 30 4 Example of Register of Housing Infrastructure 32 5 Example of register of crops and trees 33 6 Example of entitlement agreement contract 34 7 Suggested procedure for draft RAP preparation, 35 review and approval 8 Suggested procedure for the implementation 37 and delivery of entitlements 9 Summary of relevant laws pertaining to 39 resettlement. EXECUTIVE SUMMARY

The Government of Angola through its Ministry of Agriculture and Rural Development is implementing the Market-oriented Smallholder Agricultural Project with a loan from the International Development Agency of the World Bank. The estimated duration of the project is six years and it will be implemented in the twelve selected municipalities in Bie, Huambo, and Malanje provinces. The number of project beneficiaries is estimated to be 200,785 smallholders or 1,000,000 people.

The project development objective is the generation of broad based and sustainable increase in the incomes of the smallholders of targeted municipalities and communes. This will be achieved through improved organization and efficiency of agricultural production and marketing

The project will support community investments in various types of sub-projects that may require land for the construction of small-scale infrastructure. This Resettlement Policy Framework (RPF) provides the guidelines for determining the need and extent of a Resettlement Action Plan (RAP) for sub-projects. The project is in line with the government’s poverty reduction strategy (Estrategia de Combate de Pobreza), which, among other objectives is the giving of prominence to rural development with a focus on food security and the revitalization of the rural economy. The mechanisms for achieving them include (a) the strengthening of the productive capacity of the traditional sector, (b) the re-launching of rural commerce (c0 the sustainable development of the natural resources.

The project area was selected in consideration of the fact that the region experienced some of the worst effects of the war that destroyed most of the production infrastructure and livelihood s of the population. As a result the region suffers from food insecurity and high levels of poverty. On the other hand the region has optimal agro-ecological conditions for improved smallholder market-led agriculture that could facilitate the enhancement of the income-earning capacity of local communities.

Investment subprojects

The project will have four components, namely (a) agricultural productivity and competitiveness (b) pilot fertilizer market improvement program (c) capacity building and (d) project management. However, not all the components will be affected by resettlement. Only some activities in the Component Agricultural Productivity and Competitiveness may require some form of resettlement. It is the Component 1 (Agricultural Productivity and Competitiveness) that may lead to the need for acquisition of land and the loss of assets and livelihoods. This component will co-finance sub-projects identified, analyzed and prepared by providing matching grants for their implementation. Activities to be financed will be selected on the basis of their potential contribution to project objectives and must relate to agricultural production or value chain sub-proposals that have been presented by beneficiaries through farmers associations or other community social groups (e.g. women groups). Some of the infrastructure that may be constructed could include: Small buildings (e.g. rural markets), livestock feedlots, poultry-houses, livestock dip-tanks, access roads, and earth dams e.t.c.

Selection, preparation, review and approval of sub-projects

Beneficiary groups and individuals will be responsible for identifying sub-projects that they wish to undertake with assistance of project funding. In some cases local EDAs (municipal Agricultural Development Institute in Portuguese), NGOs (non-governmental organization) and other service providers will assist local communities in this regard. For complex sub-projects or those spanning more than one administrative unit (municipal or province), the Provincial Project Coordination Committee (PPCC) and even national Project Coordination Committee (PCC) may facilitate the identification of these projects

i If resettlement will be required the EDA will form an RPT involving key stakeholders that will be responsible for preparation of the draft sub-project RAP. The help of the Technical Assistance Unit (TAU) may be sought at this stage if necessary The draft sub-project RAP will then be submitted to the municipal level PCC for scrutiny before being submitted to the PPCC for review and approval. For complex projects final review and approval will only be undertaken at the national PCC.

Estimated population and likely categories of displacement.

The existing farming and settlement pattern consists of scattered homesteads, sometimes grouped into villages, with agricultural fields adjacent to the homesteads. The farming plots are small, typically of about 2 hectares. Most farmers do not practice mechanized cultivation of land nor have farming infrastructure such as irrigation systems or earth dams. Hence sub-projects requiring resettlement will be few.

However, resettlement cannot be ruled out in a few cases. If we assume that about 250 sub-projects will require resettlement. We can further assume that for each sub-project: • 1 house • 4 fruit trees per plot out of 20 plots to be affected. • 50m² of annual crops per plot out 20 plots to be affected. • 1 grave.

Then total impacts for the whole project will be of the order of: • 1250 people • 250 houses • 20,000 fruit trees. • 25 hectares of annual crops. • 250 graves

Potential impacts.

In general, rehabilitation of existing infrastructure should not require the permanent acquisition of additional land. Sub-projects that could result in land acquisition, either permanently or temporarily, and which may adversely affect the assets or livelihoods of people include: • Construction of small buildings and structures (e.g. rural markets, training halls, and laboratories) • Livestock feedlots, poultry houses, and cattle dip-tanks. • Improvement to local earth feeder roads, and construction or repair of culverts, small bridges and drainage channels. • Construction or repair of small earth-dams. • Construction of fishponds, • Small irrigation schemes with ancillary infrastructure. • Establishment of livestock grazing schemes.

Land acquisition

Acquisition of land should be avoided by locating any infrastructure on unoccupied or unused land. This should be made a requirement for any request for project grants from beneficiary groups. In other cases land in use or occupation by other people will have to be acquired for sub-project infrastructure. In such cases, the land should be donated in exchange for alternative land and fair compensation paid for losses that may result. This is voluntary acquisition. However, some projects can only be located on land

ii meeting specific technical criteria. Irrigations schemes, earth dams, fishponds, small bridges, among other infrastructures all demand very specific technical criteria of the land. In these situations it will be necessary to acquire land that is already occupied or is in use. This kind of land acquisition is of necessity, involuntary. As with voluntary acquisition involuntary acquisition will result in similar impacts of loss of land and assets that must be compensated. Some projects will, however only involve temporary land acquisition after which the land reverts to the owner. Even then the affected person must be compensated for any losses that may result from the temporary acquisition of his land. In some cases the construction of the infrastructure may only involve inconvenience by affecting access routes while others may cause economic displacement. All these impacts need remedial measures to be taken to mitigate the impacts.

Legal framework for resettlement

Existing legislation does not directly address involuntary resettlement. Only the land law and environmental law indirectly address issues of involuntary displacement.

The land law stipulates that all land is the property of the state and it is occupied by individuals or corporate bodies for uses allowed and recognized by the state. A person occupying land may lose the land if he does not show evidence of use or if the state expropriates the land in the public interest. In terms of compensation, the law provides a mechanism for lost assets, although the principles governing this compensation are not specified. The law does not make provision for addressing any grievances that affected people may face during the said expropriation although it permits recourse to the courts where a dispute cannot be resolved by traditional processes.

The law however, recognizes the traditional land ownership and occupation systems. To demonstrate its recognition, it obliges all land acquisitions in rural communities to be effected through the local traditional authorities (the Soba or regidor)

The environmental law also indirectly addresses land issues. According to this law all activities that cause negative environmental or social consequences must undergo an environmental assessment. The kind of environment assessment that is required is determined through a screening procedure. This obliges the project proponent to apply for environmental screening and to provide to the authorities details of the nature and operation of the activity to enable them to decide on the need and scope of environmental assessment.

Objectives of the MOSAP RPF

This RPF has been prepared in order to comply with the requirements of the World Bank policy on involuntary resettlement of people affected by development projects (O.P.4.12). The policy has the following objectives (a) to guide the process of involuntary displacement in those sub-projects in which displacement is unavoidable so that it occurs in a participatory and socially and environmentally sustainable way, (b) to avoid involuntary displacement or minimize it by exploring viable alternative sub- project designs, (c) assisting affected people to improve their living standards or at least to restore them, in real terms, to pre-project levels, (d) minimizing the displacement of people by employing appropriate design technologies and endeavoring to locate project infrastructure on land not requiring displacement or causing disturbance and disruption to their lives. Through this mechanism and taking into consideration that sub-project activities are expected to produce only minor impacts, the kind of resettlement planning that will be appropriate for most of the project activities will be the abbreviated resettlement plan.

iii

Preparation of the MOSAP RPF

The environmental legislation of the country exempts certain activities from environmental impact assessment (EIA), which also includes social impact, if they are of a certain type and size. This usually applies to small projects with minimal adverse environmental and social impacts. Most MOSAP subprojects will fall into this category. They must however, be subject to environmental screening that will determine if each sub-project is liable to environmental assessment.

The process of environmental screening will be the responsibility of the municipality technical staff, primarily the EDA staff. Where necessary their capacity in addressing resettlement issues will be improved through training. The screening forms will be submitted to the provincial directorate of MINUA for decision regarding whether displacement will be required. If displacement will occur, then resettlement planning must commence according to the law and OP 4.12. The only exception is in the case of voluntary land donation, which will need to demonstrate that the donation was indeed voluntary and that the selection observed transparent and participatory procedures, and the donor is fully compensated for any losses.

For land that is publicly owned, the community must issue a certificate declaring the land free from any claims.

Eligibility criteria for entitlements

The municipality through its EDA and resettlement planning team will be responsible for establishing the eligibility criteria for compensation of affected people. The RPT will be guided by the framework eligibility criteria in this RPF in performing this task. It is important that this activity involves local community leaders who will be able to confirm the bona fides of persons to be compensated for each category of assets as well as the assets involved.

Institutional arrangements

A national PCC will be formed that will be responsible for overall decision-making regarding project matters. Routine management of the project will be the responsibility of MINADER through its Project Implementation Unit( PIU) to be established and to oversee all financial and technical issues. Resettlement issues will therefore fall under the PIU.

At the provincial level, the PPCC will oversee all the project implementation, including approval and monitoring of sub-projects. TAU will be formed in the provincial PIU to be responsible for all technical matters, including resettlement.

At the municipal level, the EDA will be responsible for technical and issues and will act on behalf of the municipality on all sub-project issues, inclusive of resettlement.

For sub-projects that may require land acquisition, damage to assets and livelihood resources, the EDA will establish a resettlement planning team (RPT) that must include representatives from farmers and key stakeholder groups. The RPT will perform the following functions:

a) Ensure the RAP is as inclusive as possible and transparent. b) Facilitates communication and participation of stakeholders. c) Provide adequate information to the technical team. d) Set eligibility criteria for sub-projects. e) Verify eligibility

f) Approve eligibility methodology. g) Verify entitlements. h) Ensure delivery of entitlements. i) Establish procedures and monitor compliance with grievance mechanisms

Monitoring Arrangements

Following the requirements of the WB, during compensation and resettlement implementation, and possibly for some time afterwards, both internal and external monitoring and evaluation exercises will be carried out in order to monitor progress and ensure that APs are adequately catered for and are left in a position no worse off than they were prior to subproject commencement. Draft RAPs will be required to list the monitoring and evaluation arrangements for individual sub-projects. Monitoring and evaluation should be part of, or be closely aligned to, the monitoring and evaluation process agreed to for monitoring of other environmental impacts in terms of the sub-project environmental management plan, where applicable.

Monitoring will be the responsibility of the national PCC through its PIU for those programs whose approval will fall under the PCC. For sub-projects whose approval falls under the PPCC, the PPIU will be responsible organ for undertaking monitoring.

Programming and scheduling.

It is important that resettlement activities are undertaken well in advance of the construction of sub- project infrastructure. Therefore, project management must provide the RPT with two critical dates • The date of start of construction of the sub-project infrastructure. • The date of start of operation of the infrastructure.

This information will enable the RPT not only to prepare a RAP that fits in with overall project programming, but more importantly, will determine when construction of the infrastructure can begin. For O.P.4.12 specifies that no construction of project infrastructure can start unless and until the sub-project RAP has been fully implemented, including the delivery of all entitlements. Furthermore, for unforeseen damage caused during construction, its compensation must be effected within 30 days or construction work must be stopped until the said compensation has been paid.

Resettlement funding

It is not envisaged that many sub-projects will require land acquisition, which will cause displacement and lead to the need to relocate and/or compensate affected people. Nevertheless, funds should be made available that will be used to cater for the few sub-projects that may require land acquisition. Consequently an indicative resettlement budget has been included in the RPF to ensure that funds are allocated for resettlement should the need arise.

The main resettlement costs will involve the payments for entitlements, and the training of IDA/EDA, municipality and other government staff in aspects of resettlement plan preparation, implementation and monitoring. In developing the costs, the estimates must be realistic enough of the prevailing prices of entitlements and other necessary items. It must also include an element of contingency (about 5%) to cater for any unforeseen expenses that may arise.

As the project is a government owned and managed program, land acquisition should be considered as being acquired in the public interest. That being the case al costs of the resettlement program will be

v borne by the government through MINADER. The estimated cost of the resettlement program will be US $1,338,550.

1. INTRODUCTION.

The Government of Angola (GoA) through its Ministry of Agriculture and Rural Development (MINADER) is implementing the Market-oriented Smallholder Agricultural Project (MOSAP) with a loan from the International Development Agency (IDA) of the World Bank (WB). The estimated project duration is six years. The project development objective is to increase the agricultural income of rural smallholders in the targeted municipios and communas of Bie, Huambo and Malanje provinces, through enhanced agricultural productivity and a more efficient marketing of agricultural surpluses. This is to be achieved through improved organization and efficiency of agricultural production and marketing. The number of project beneficiaries has been estimated to be 200,000 smallholders or approximately 1,000,000 people. . The project will support community investments in various types of sub-projects that may require land for the construction of small-scale infrastructure. This Resettlement Policy Framework (RPF) provides the guidelines for determining the need and extent of a Resettlement Action Plan (RAP) for sub-projects.

2. BACKGROUND AND PROJECT DESCRIPTION

2.1 Background

In its efforts to meet the Millenium Development Goals (MDGs), the Government of Angola has identified poverty reduction as one of the key instruments to be adopted. It has consequently formulated a Poverty Reduction Strategy (Estrategia de Combate a Pobreza,ECB) that defines the main strategic objectives to be achieved by the year 2015.

The ECB aims to halve poverty levels in the country by, among other actions, giving prominence to rural development with a focus on food security and the revitalization of the rural economy. The mechanisms for achieving them include (a) the strengthening of the productive capacity of the traditional sector especially food crops and fisheries. (b) the re-launching of rural commerce and (c) the sustainable development of the natural resources.

The World Bank supports the Government of Angola in the development of many sectors of the economy. One of its support focuses on providing basic services to rural areas especially to returnees, ex- combatants and other vulnerable people. Another support concentrates on promoting equitable growth especially through improving the environment for private sector growth and the identification of pilot interventions in the rural economy.

The project area forms part of the Central Highlands, an area that experienced some of the worst effects of the war through the destruction of the socio-economic life of local communities. Whereas the region had been the traditional agricultural heartland of the country before independence, it was reduced to a food deficit region by the end of the war in 2002. The major impacts of the war included: destruction of rural infrastructure; loss or destruction of farming, processing and transport equipment; the disappearance of high quality seed stocks and planting material; the collapse of rural marketing channels as well as of credit mechanisms.

These conditions have given rise to a region that has high levels of food vulnerability, little or no incomes for the local rural population, poverty, and with under-developed rural markets. On the other hand, the region is blessed with favorable agro-climatic conditions for farming and has significant population density that requires socio-economic upliftment through enhancement of its income earning potential. The ongoing rehabilitation of the railway transport network will facilitate better market access for produce from the region. There have been recent improvements in transportation infrastructure that can

1 have a catalytic effect in improved agricultural output from the area. Finally, the project will benefit from potential synergies with other projects. It is against the background of the conditions described above that the GoA and its development partners elected to implement this project in the area.

2.2 Project Components.

The project is located in the provinces and municipalities as detailed below: • Bie: Andulo,Catabola, Camacupa and Chinguar. • Huambo: Bailundo,Londuimbali, and Mungo. • Malanje: Cacuso, Caculama,Kalandula, Kwaba-Nzogi and Malanje. (See Annexure 1 showing the population of affected provinces and municipalities)

Agricultural Productivity and Competitiveness

Under this component the project will provide support based on demand, in the form of matching grants, to agricultural production and marketing sub-projects, based on priorities jointly defined at the local level by farmers and/or other operators, local governance institutions, and technical experts. The sub-projects would be initiated upon request by smallholder groups and eligible service providers, and screened for technical, financial, social and environmental feasibility by experts identified by the Project Implementation Unit (PIU).

Project support would be based on pre-established assessment and prioritization criteria for funding eligible beneficiaries and sub-projects, respectively, including: (i) who would be eligible to submit sub- projects for funding, and (ii) activities that are eligible for funding. Cost-sharing could range from 90 percent project share and 10 percent beneficiaries share, to 25 percent project share and 75 percent beneficiaries share.

There would be three types of activities under the matching grant mechanism: (i) productive agricultural investment would include such activities as livestock, farming equipment, small-scale water control infrastructure, etc; (ii) agricultural marketing would include small-scale storage structures, post-harvest processing equipment, rural markets, etc.; and (iii) technology adaptation would support activities such as testing and/or modification of genetic material, farming or processing equipment, soil fertility schemes, etc.. From a resettlement perspective, the first two activities above are those that could have the potential for triggering the need for land acquisition that may give rise to compensation of assets lost and relocation of housing, farmland and graves.

It is expected that the project will approve a total of 1000 sub-projects, including 800 sub-projects prepared as a result of village level participatory planning exercises, and 200 sub-projects as a result of requests from eligible services providers. Based on experience elsewhere in Africa, it is estimated that the average project contribution to each sub-project will be equivalent to US$ 24,000.

Pilot Fertilizer Market Improvement Program

This component aims at developing a mechanism that allows the Government to continue to support farmers to obtain fertilizers, while at the same time providing incentives (by reducing risks) to the private sector to invest in and strengthen the fertilizer supply chain. To do so, a pilot fertilizer voucher scheme

2 will be designed and executed. The project will finance the preparation of such a pilot fertilizer voucher scheme, as well as the costs of its management and operations. The actual cost of the fertilizers would be shared by the government and participating farmers (and would not be counted as project costs). The pilot fertilizer voucher scheme would be carried out in one or more contiguous municipios that are part of the overall MOSAP project area. All communes within these municipios would be covered by the pilot program..

The capacity building component will include training of farmers and extension workers on appropriate use of fertilizers.

Capacity Building

This component will strengthen the technical, institutional, managerial and business skills of agricultural producers and their organizations, as well as of extension staff and agricultural services providers along the value chain with which they interact. It will also strengthen relevant government institutions at municipal, provincial and central level and introduce or strengthen participatory processes that support the decentralization process. The component is organized in three sub-components, focusing on smallholders and their organizations, the private and non-government sector, and relevant government institutions that serve smallholder farmers:

• Strengthen capacities of smallholders and their organizations, • Strengthen capacities of traders, processors and other service providers, • Strengthen capacities of relevant government institutions,

Project Management

The objective of this component is to manage and use resources in accordance with the project’s objectives and procedures, and is organized into two sub-components, management and monitoring and evaluation.

Management. At the national level, a Project Coordinating Committee (PCC) will have the overall decision making responsibility regarding the management of the project, including approval of work plans and budgets. The composition of PCC will be agreed during project appraisal. The day to day management of the project will be handled by MINADER through PIU which will be established within MINADER and charged with the responsibility of all aspects of project management, including technical supervision and coordination, overall project planning, quality oversight, procurement, financial management, and monitoring of project activities at national, provincial and municipal level. The At the specific request of MINADER, a Project Implementation Unit (PIU) will also be responsible for the management of fiduciary issues, in conformity with the standards and requirements agreed upon with the World Bank and IFAD, and in accordance with the project document (PAD) and Legal Agreements. The PIU will operate within the Agricultural Development Institute (ADI) framework, with the Director general of IDA becoming the executive level public manager of the project, fully responsible for the management of the project. The PIU will include a Project Coordinator, a financial management expert, a procurement officer and an (ADI-staff) accountant, as well as a monitoring and evaluation Officer. A national level Project Coordination Committee will monitor project progress and make decisions in line with the objectives and institutional arrangements defined.

At the provincial level, the Provincial Project Coordination Committees (PPCC) will oversee project implementation, including monitoring local project progress and making decisions in line with the objectives and institutional arrangements consistent with the project documents and legal agreements, respectively. A specific request of MINADER, three Provincial Project Implementation Unit (PPIU) will

3 be established within ADI in each of the three targeted provinces (Bié, Huambo and Malanje), will be responsible for the day to day management of project activities at the provincial level and will report to PPCC on need basis. Each PPIU will include a Provincial Project Coordinator, a financial accountant a procurement officer and a monitoring and evaluation officer, as well as Technical Assistance in the form of an agronomist and an agribusiness specialist, supplemented by short-term consultants according to needs. Three Provincial Project Coordination Committees will monitor local project progress and make decisions in line with the objectives and institutional arrangements defined.

Regarding the implementation arrangements for the subprojects cycle management, it was agreed the following:

Identification • Demand has its origin from the municipal level; • If necessary, EDA and/or services providers should provide support to this identification Analysis • In most cases, EDA prepares the respective subproject documentation, mobilizing technical assistance when justifiable from the PPIU. • Initiatives supported or originated by other institutions should be in compliance with the implementation manual and preferentially channeled through EDAs Evaluation • All subprojects are evaluated by PPIU. • Based on the costs and complexity (which criteria will be defined at the operations manual), the projects should be evaluated by the PIU, at central level. Decision • Depending on the complexity and dimension, and based on criteria included on the operation manual, the subprojects are classified in “subprojectos of central decision” and “subprojects of local decision”. • Based on classification, decision is made by the Implementation Committees, at central and provincial level, respectively. Implementation • The PPIU or the PIU, depending on subproject classification, are responsible for the implementation administrative procedures (financial and of procurement) • The management rules will be established with details on the Operations Manual. Simplified rules will be included to facilitate the implementation by the beneficiaries, whenever they have capacities for such. • Also, the procurement will be made, whenever possible and justifiable, involving the beneficiaries to allow a better adherence with the beneficiaries expectations.

4 2.3 Selection, Preparation, Review and Approval of Sub-Projects.

Projects will be conceived by beneficiary groups (farmers, farmers associations, traders, for example). Projects can also be identified at the level of the Comuna, through the secretary responsible for economic affairs.

A number of NGOs are involved in many aspects of rural development, inclusive of farming, that will certainly be able to identify and prepare proposals for viable projects on behalf of beneficiaries. A good example would be ADRA that has a lot of relevant experience in the area.

Depending on their experience and capacity, beneficiaries could also undertake some project preparatory work, although this will be minor. Some projects however, due to their geographical extent or technical complexity, will only be conceived by organs having superior technical, and organizational capacity. The ideal organ in this case will be municipality level institutions. The EDA is the institution with the capacity to identify these types of sub-project with assistance from the TAU based at provincial headquarters, where necessary. The EDA will also be responsible for analyzing, preparing and submitting the proposals to the PIU for review and approval.

Provision has been made for two levels of decision-making on the MOSAP depending on the size and complexity of the sub-project. The PIU will be responsible for reviewing and approving those projects that are complex or cover extensive geographical area, perhaps involving two or more municipalities. Simpler sub-projects will be reviewed and approved at a more local level. This could be at the level of the province (PPIU) or at municipality (EDA).

3. IMPACTS, LAND ACQUISITION AND RESETTLEMENT

3.1 Estimated Population Displacement And Likely Categories Of Displaced People.

The residential premises of the area are usually located on the uplands near roads or access tracks and in village clusters with farming plots lying below the homestead or even some distance away from the homestead. In some areas isolated houses, especially of recent settlers, can be found near roads with their fields nearby. Due to low soil fertility, farmers practice shifting cultivation in order to take advantage of virgin land that is still rich in humus and other nutrients. In some places a group of farmers unite to construct irrigation canals for irrigating their lands. These are very basic structures consisting of a diversion channel made from a river or stream and discharging into an earthen canal. Farming plots are small, typically of two hectares and it is unlikely that many farmers will substantially increase their plot sizes after the project. As such we do not anticipate that there will be many large infrastructures, which will be constructed to serve these kinds of farmers that will require displacement of people or assets. The population displacement that may occur can therefore only be an estimate. If we assume that there will be fifty subprojects per year that will require resettlement and the effective project implementation period is five years (excluding year 1), there will be a total of 250 subprojects during the project duration. If we assume furthermore that one house, 4 fruit trees from 20 plots, and 50 square meters from 20 plots of annual crops, and one grave will be displaced per subproject, we can be able to give an estimate of the total impacts of resettlement that will be required for the project.

Based on the above assumptions the expected impacts will involve: • 1250 people • 250 houses. • 20,000 fruit trees.

5 • 25 hectares of annual crops • 250 graves

3.2: Potential Impacts

At this stage of the project, no sub-projects have been identified. It is therefore not possible to predict with any degree of certainty the type and extent of any adverse social, economic and cultural effects. In general, rehabilitation of existing infrastructure should not require the permanent acquisition of additional land. Possible sub-projects that may require land to be acquired, either permanently or temporarily, and which may adversely affect the assets or livelihoods of people include: • Construction or rehabilitation of small buildings and structures, such as rural markets, training halls and laboratories (e.g. market shelters), crop collection, grading and packaging facilities, transport shelters, small agro-processing units, • Livestock feedlots, poultry-houses and cattle dip-tanks. • Improvement to existing local earth feeder roads and construction or repair of culverts, small bridges and drainage channels; • Construction or repair of small earth dams for small-scale irrigation or livestock watering; • Construction of fishponds; • Construction of small community irrigation schemes with ancillary infrastructure, such as intake structures, buildings, water conveyance structures (e.g. pipelines and canals) and access roads; • Establishment of livestock grazing schemes; and • Establishment of community woodlots. • Fertilizer storage and bagging facilities

3.3: Land Acquisition

The establishment of any infrastructure should, in the first instance, be located on unoccupied or unused land. This should be made a requirement for any request for project support to individuals or corporate bodies that function as individual operators.

In other cases, however, land that is currently being used or occupied by other people, entities or the community itself will have to be acquired for sub-project infrastructure. The land may be acquired through the voluntary donation by individuals, the community or by the state. The land should be donated in return for alternative land and fair compensation for any loss resulting from the installation of the infrastructure.

In other cases some infrastructures can only be installed on sites meeting very specific technical criteria. Earth dams for example, require specific topographic, geological and soil criteria and extensive grazing schemes require minimum area to be viable. Other possible sub-projects, which have technical limitations with respect to site selection, include fishponds, canals for irrigation schemes, woodlots, road culverts and small bridges, although the severity of the limitations is variable.

In such cases it may be necessary to acquire land that is occupied or used by another person or entity. Such land acquisition is necessarily involuntary- voluntary land donation is not possible in such cases because the owner or occupier has no option but to release his or her land to the project. As with voluntary land donation, the affected person will permanently lose the land, access to resources on the land (e.g. livestock grazing and timber resources) and any structures, crops, valuable trees (e.g. fruit trees) and other fixed assets on the land. In some circumstances these losses will result in the loss of accommodation (residence) and in adverse impacts on food supplies and income sources. Losses and the resultant displacement is expected to be small. Depending on the nature and extent of the impacts, the

6 affected person will need to be relocated to another site, provided with compensation for losses suffered and provided with other rehabilitation measures. For some sub-projects, such as small dam construction, losses may become more significant if other land within the catchment is needed for conservation and protection purposes. The development of a small-scale irrigation scheme may also result in the reduction in stream flow where the stream is diverted. For people who currently rely on such stretches for water supplies this would represent a reduction in access to resources.

For some sub-projects land acquisition will only be temporary. Such land may be used during construction activities for clearing vegetation, gaining access to site or for storage of construction materials or spoil and will be returned to the owner after construction has finished. Although the areas involved will usually be very small, the affected party will lose temporary access to the land during the period of construction. Some infrastructure, crops and trees may be permanently removed or damaged and food supplies and income sources may be adversely affected. As far as possible the affected land and assets will be returned to its original state after construction but the affected person must be compensated and also provided with subsistence materials during the recovery period.. Even where there is no loss of land, unforeseen damage to property may also be caused by construction machinery and personnel. The construction of sub-project infrastructure such as small dams and, particularly, the erection of fences around project areas may, in certain cases, cut off traditional access routes, such as pathways and livestock routes, and impede accessibility to locations and resources. The result is likely to be inconvenience rather than displacement but remedial measures may need to be considered. The acquisition of land for some sub-projects could cause economic displacement. For example, the construction of new rural markets (i.e. market stalls or shelters) could involve the relocation of vendors and lead to a certain amount of displacement (loss of income). However, the impacts will be temporary if the vendors are able to return to the improved facilities and their initial losses will be offset by the improved structures and facilities made available to them. Likewise, adverse socio-economic impacts associated with displacing people from small-scale irrigation development will be minimized if the affected people subsequently become irrigators on the newly developed scheme.

3.4: Involuntary Resettlement

The need to take land and/or productive resources and to, therefore, displace people is likely to occur in only very few exceptional cases and the degree of any displacement is not expected to be significant as has been demonstrated in Section 3.1 above. In the few cases where displacement may take place, measures must be taken in order to avoid or minimize any negative impacts on the affected people and environment. The Angolan legislative and policy framework is not specific on measures which should be taken to address impacts caused by resettlement except compensation payment for property lost when land is taken in the public interest

World Bank Operational Policy On Involuntary Resettlement (O.P.4.12)

For WB supported projects such as the MOSAP, the Bank requires that any project that causes displacement must be subject to the requirements of its Operational Policy on Involuntary Resettlement (OP 4.12). The policy covers direct economic and social impacts that are caused by the involuntary taking of land resulting in:

• relocation or loss of shelter; • the loss of assets or access to assets important to production; • the loss of income sources or means of livelihood; or • the loss of access to locations that provide higher incomes or lower expenditures to businesses or persons.

7 The WB describes these processes and outcomes as "involuntary resettlement", or simply "resettlement", even when people are not forced to move. Resettlement is involuntary if affected people do not have the option to retain the status quo that they have before the project begins. WB OP 4.12 is applied whether or not the affected persons must move to another location. Displacement may be physical, economic, social or cultural.

Where involuntary resettlement is unavoidable, resettlement activities should be conceived and implemented as sustainable development programs, providing sufficient investment resources to enable the displaced persons to share in project benefits. Displaced people should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living, or at least to restore them, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. The policy requires the project proponent to prepare a resettlement plan or resettlement policy framework. Whichever is applicable, it must address the following: (a) The affected people are (i) informed about their options and their rights regarding resettlement. (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives (iii) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project. (b) Where displacement involves physical relocation, the resettlement plan or policy framework includes measures to ensure that APs are (i) provided assistance during relocation e.g. transport, (ii) provided with residential housing, or housing sites or as required, agricultural sites for which a combination of productive potential, location advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve objectives of the policy, the resettlement plan or policy framework also include measures to ensure APs are (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time required for restoration of their livelihoods and standards of living (ii) provided with development assistance in addition to compensation such as land preparation, credit facilities, training or job opportunities.

The MOSAP project will support community investments in various types of sub-projects that may require land for the construction of small-scale infrastructure. This Resettlement Policy Framework (RPF) provides the guidelines for determining the need and extent of a Resettlement Action Plan (RAP) for sub- projects.

Specific investment decisions will be made during the life of the project. Individual subprojects are not known at this stage because they will be selected at a later date. In this case the WB OP 4.12 requires two types of resettlement planning. The first is a resettlement policy framework (RPF) that guides and governs the project as sub-projects are selected for inclusion. An RPF is prepared in situations where specific investment sites and details (i.e. individual sub-projects) are not known. Because of this lack of clarity regarding the precise sites, nature and scope of resettlement, the RPF cannot be prepared as part of project appraisal. It is a statement of the policy, principles, institutional arrangements and procedures that will be followed for each sub-project involving compensation and/or resettlement. It sets out the elements common to all the sub-projects and allows for the principles and processes to be agreed so that these do not have to be discussed for every sub-project. It also allows project implementers, who may be in many locations, agencies or communities, to undertake specific sub-projects without having to renegotiate fundamental agreements. The RPF must be prepared, accepted and disclosed publicly before the WB will appraise the project.

8 The second element includes individual resettlement action plans (RAPs) that are undertaken for each sub-project where displacement will occur, once more specific details of the location and nature of the sub-project is known. Individual RAPs must be prepared and reviewed before they are accepted for inclusion in the overall project or programme. The RPF provides the basis for developing RAPs, if needed, for each sub-project and the RPF and the RAPs are fully complementary to one another.

3.5 The MOSAP RPF

This RPF has been prepared in order to meet the requirements of the Government of Angola concerning resettlement and compensation of as yet unidentified sub-projects on the MOSAP. The RPF forms part of the environmental and social management framework although it is being prepared as a separate document on this project.

It has been prepared in accordance with the policy and regulatory framework of the GoA regarding involuntary displacement, even if the policy on this issue is not very explicit. Further, as the WB funds the MOSAP; the RPF has been prepared to comply with the WB policy framework on involuntary resettlement (OP 4.12). The preparation of this RPF has followed recent examples of other RPFs in Angola and in Moçambique.

It will be subjected to disclosure to relevant institutions (MINADER and Ministry of Public Works), stakeholder groups for their endorsement and arrangement for implementation of sub-projects. It will be made available to the Ministry of Urbanization and Environment for review and comment. The RPF must be approved by the relevant environmental and social review unit (in this case AESDU) and disclosed on the WB Info-shop. It will be publicly disclosed in the country in Portuguese including at the project offices of the relevant municipalities. Further, the WB reserves the prerogative of revising any and all RAPs or at its disposition, of delegating this authority to national officials, before disclosure of any RAP both in WB Info-shop and in Angola.

4 PREPARATION, REVIEW AND APPROVAL OF A RESETTLEMENT ACTION PLAN

The country has no specific policy guidelines regarding involuntary displacement except to specify fair compensation of property lost when land is acquired in the public interest. The need for and the procedure for preparing resettlement action plans are therefore not defined. However, any WB financed project that results in involuntary displacement must be subject to the requirements of its Operational Policy on Involuntary Resettlement (OP 4.12). The form of resettlement planning process has been described in 3.4 above. The RPF is prepared to address situations where the location, nature and scope of displacement are not yet known. An example of the procedure for the preparation of a sub-project RAP is given in Annexure 5.

4.1. Determining When Resettlement Planning Is Needed

According to the environmental legislation of the country, certain activities are automatically exempt from environmental impact assessment (EIA), which also includes social impact assessment, if they are of a certain type and size. This typically applies to small projects that usually have minimal adverse environmental and social impacts. This is likely to apply to many MOSAP sub-projects.

For large projects and certain prescribed categories of projects, application of at least part of the EIA process is mandatory. This applies, for instance to some dam and irrigation development projects of a

9 certain size. It also applies to projects that could result in significant displacement of people and property and the need for relocation and compensation, regardless of the type and size of the project.

For such projects the environmental legislation requires that a screening process be undertaken to determine whether an EIA needs to be carried out and to determine the type and complexity of EA to be applied. Although most MOSAP projects are unlikely to require EIA, the ESMF for the project requires that all sub-projects be subject to the environmental screening process. The screening process will identify potential environmental and social impacts of sub-project activities, including impacts on land, assets and socio-economic activities.

During the preparation of sub-project proposals or applications the applicant will complete an environmental screening form or checklist, an example of which is included in the ESMF. The checklist contains sections relating to the need for land acquisition and the likely extent of displacement caused by the sub-project. Municipality technical staff, primarily those in the EDA, will be trained in the application of the checklist in order to train and assist sub-project applicants to complete them. Assistance will also be made available through the ESMP that is to be become part of the project management program. The screening process provides an opportunity for sub-project applicants to change sub-project designs and locations in order to reduce the area of land that needs to be acquired and thus minimize the scale of displacement caused.

Completed checklists will then be forwarded to the Provincial Directorate of MINUA which will determine whether further EIA studies and resettlement planning is required. The need for resettlement planning will be determined according to the requirements of Angolan legislation and WB OP 4.12. If the environmental screening process determines that no privately held land needs to be acquired or that small areas of land need to be acquired but that there will be no displacement of people or acquisition of land, no further resettlement planning will be required. This is likely to be the case for the majority of MOSAP sub-projects. However, even in such cases, the PPCC or the WB may require that further EIA or a resettlement planning be undertaken, depending upon the nature of the impacts.

Resettlement planning is always required whenever land is acquired or de facto right to public land will be abridged. The technical staff of Provincial Directorates of MINUA performs the EIA screening process. In the same way, the technical staff of IDA who will form part of the PPCC will carry out sub-project screening for RAP purposes.

4.2 Voluntary Land Donations In Sub-Projects

If any of the questions in the check list concerning land acquisition and displacement are answered in the affirmative, this will signal that resettlement planning, in accordance with the requirements of legislation of the country and the WB OP 4.12 is required. An exception will be in the cases where land needs to be acquired but will be donated voluntarily.

The determination of informed consent can sometimes be difficult. The following criteria are presented as guidelines to help ensure that any donation or relinquishment of land or assets for a sub-project is done voluntarily: • the infrastructure is not site specific; • the impacts are minor (i.e. involve no more than 10% of the area of any holding and do not require any physical relocation; • the land required to meet technical project criteria is identified by the beneficiary community, not by line agencies or project authorities (nonetheless technical authorities can help ensure that the

land is appropriate for project purposes, and that the project will not produce health or environmental safety hazards); • the land in question must be free of squatters, encroachers or other claims or encumbrances; • verification (e.g., notarized or witnessed statements) of the voluntary nature of land donations must be obtained from each person donating land and accompany the application; • if any loss of income or physical displacement is envisaged, verification of voluntary acceptance of community-devised mitigation measures must be obtained from those to be adversely affected; • if community services are to be provided under the project, land title is vested in the community, or appropriate guarantees of public access to services must be given by the private title holder; and • grievance mechanisms are available.

Where applicable, these criteria will be applied to all MOSAP sub-projects where there is need to acquire land through voluntary donation or relinquishment of land and/or assets for subproject purposes. With assistance from the municipality administration, negotiations will be conducted between the AP and the community leaders concerning the voluntary ceding of the land and assets by the AP to the community and the subsequent replacement, relocation or restoration measures to be applied. Negotiations will include inspecting any replacement land to be offered.

Once the details of land and other asset donation or loss have been agreed to, APs and the authorized community leaders will sign entitlement agreement contracts. These will record any final agreed measures for replacing or restoring lost assets and relocation of entitlements. The entitlement agreement contracts will be included in the sub-project dossier.

Where the land is in the public domain or is officially recognized, as belonging to the community the community leaders will issue a certificate stating that the land to be used for the sub-project is not encumbered. This will be included in the sub-project dossier.

4.3 Planning For Involuntary Resettlement- Resettlement Action Plans.

In situations where it is determined that land will be required for a sub-project, which will cause involuntary resettlement, resettlement planning will be necessary. The size and complexity of the sub- project will determine the complexity of the resettlement plan. For any sub-project that causes a significant amount of displacement a full RAP will be needed. However, WB OP 4.12 allows for an abbreviated resettlement plan (ARP) to be prepared for situations where the impacts on the entire displaced population is minor (i.e. affected people are not physically displaced and less than 10% of their productive assets are lost) or fewer than 200 people are displaced. This is likely to be the case for most MOSAP subproject that requires a resettlement plan All resettlement plans must cover the same topics, i.e.: number of affected people; type of impact; eligibility criteria; compensation packages; institutional arrangements; participatory and grievance approaches; timeline; monitoring programme; and budget. The more the number of people and impacts, the more information that must be collected, and the more complex the RAP.

Once a sub-project that requires land has been identified and the basic infrastructure plan for a sub-project has been produced, the RAP process will commence. A summary of the RAP preparation process is presented in Annex. 5.

The RAP process will culminate in the production of a draft RAP that will be an agreed action plan and commitment of all stakeholders for resolving the displacement, compensation and relocation issues of the sub-project. Among others, it will indicate the criteria to be used, after overall sub-project approval and

11 during implementation, for determining whether a person or entity is eligible for resettlement entitlements, what entitlements will be due to different categories of APs and for different types of losses, how the affected assets of individual APs will be valued and how compensation and resettlement entitlements will be delivered. It will thus form the basis for determining the specific entitlements due to individual APs during implementation, and serve as a guideline for resettlement implementation.

4.4. Institutional Framework

At the national level, a Project Coordinating Committee (PCC) will have the overall decision making responsibility regarding the management of the project, including approval of work plans and budgets. The composition of PCC will be agreed during project appraisal. The day to day management of the project will be handled by MINADER through PIU which will be established within MINADER and charged with the responsibility of all aspects of project management, including technical supervision and coordination, overall project planning, quality oversight, procurement, financial management, and monitoring of project activities at national, provincial and municipal level.

At the municipal level a similar organ to the national and provincial project coordinating committees will be established to be responsible for identification, screening, analysis, preparation and submission of sub- projects to the PPCC for review and approval. The EDA will act as the technical organ of this municipal level committee regarding project matters (including resettlement) due to its technical expertise, even if there may be need for improvement through training. The EDA will, for each subproject, establish an RPT that will include representatives of farmers and other key stakeholder groups.

The RPT will undertake the following functions: (a) Ensure that the RAP is as inclusive as possible and transparent. (b) Facilitates communication and participation of stakeholder groups. (c) Provide adequate information to the technical team. (d) Set eligibility criteria for specific subprojects. (e) Verify eligibility. (f) Approve eligibility methodology. (g) Verify entitlements (h) Ensure delivery of entitlements. (i) Establish procedures and monitor compliance with grievance mechanisms.

Regarding the implementation arrangements for the subprojects cycle management, it was agreed the following:

Identification • Demand has its origin from the municipal level with beneficiary groups and individuals being the primary level for identification of projects. • If necessary, EDA, ADRA and other services providers should provide support to this identification particularly for complex projects or those spanning more than one administrative area. Analysis

• In most cases, EDA prepares the respective subproject documentation, mobilizing technical assistance when justifiable from the PPIU. • Initiatives supported or originated by other institutions should be in compliance with the implementation manual and preferentially channeled through EDAs Evaluation • All subprojects are evaluated by PPIU. • Based on the costs and complexity (which criteria will be defined at the operations manual), the projects should be evaluated by the PIU, at central level. Decision • Depending on the complexity and dimension, and based on criteria included on the operation manual, the subprojects are classified in “subprojectos of central decision” and “subprojects of local decision”. • Based on classification, decision is made by the Implementation Committees, at central and provincial level, respectively. Implementation • The PPIU or the PIU, depending on subproject classification, are responsible for the implementation administrative procedures (financial and of procurement) • The management rules will be established with details on the Operations Manual. Simplified rules will be included to facilitate the implementation by the beneficiaries, whenever they have capacities for such. • Also, the procurement will be made, whenever possible and justifiable, involving the beneficiaries to allow a better adherence with the beneficiaries expectations.

4.5. Baseline Survey and Asset Inventory

A baseline survey and inventory of affected assets is to be undertaken immediately following the conclusion of the EIA and the demarcation of the area to be affected by the sub-project infrastructure. The baseline survey will:

(a) Register people who will be potentially affected by the sub-project. (b) Determine the nature and extent of displacement. (c) Complete an assets inventory form for each potential affected person and to obtain the signature of confirmation of assets from the AP. (d) Compile a preliminary register of affected people (APs) and their affected assets, which will be verified by the municipal level project coordination committee.

Since the exact location of the sub-project infrastructure may not be known at this stage, the baseline survey should not be considered comprehensive or definitive. This will only be established during the final detailed survey after the sub-project approval has been done. The baseline survey, therefore, is to be viewed as tentative until after final survey.

This stage should also serve as part of the communication and information process when affected people are provided information regarding the sub-project and the resettlement planning procedures to be followed, the cut-off date for eligibility, the rights of affected persons and the complaints mechanisms to be followed.

4.6. Assigning Affected People to Different Asset Categories

The assets that are affected will be assigned different categories, for example, houses, land, and graves e.t.c. To these different categories of assets, each affected person will be assigned and his/her total number of assets. Thus each affected person could be assigned to more than one asset category, as is common in rural areas. This categorization will facilitate the determination of total assets per category as well as total number of people per asset category (see Annex. 2)

4.7. Determining Eligibility for Compensation

The municipality level coordinating committee through its Resettlement Planning Team will be responsible for establishing the eligibility criteria for compensation of affected persons. The RPT will be guided by the framework eligibility criteria in the RPF in performing this task (Annex. 3). It is important that this activity involves local community leaders who will be able to confirm the bona fides of affected persons to be compensated per each category of assets as well as the assets involved.

4.8 Valuation Methodology and Calculation of Cost of Compensation.

Using the framework valuation methodology in the RPF the RPT will submit a more detailed valuation methodology for approval by the municipality level committee showing the unit cost or rate for each category of asset. This may not be possible for all categories of affected assets and for some assets this may have to be negotiated with individual affected persons or local community leaders. The RPT will then calculate the estimated cost of compensation and resettlement measures, in accordance with the agreed valuation methodology. This might, for example, be achieved by multiplying the standard unit rates for a particular type of asset with the total number of potentially affected assets within categories of APs that are deemed eligible for compensation and/or resettlement entitlements.

4.9 Preparation of Draft RAP Report

The RPT will produce a draft RAP following the “suggested structure of a sub-project RAP” in the RPF, (Annex 9). It is accepted that each subproject will be different, although many of the impacts will be common among sub-projects. For some sub-projects, the RAP may take the form of a simple statement in the Environmental Management Plan (EMP) regarding, for example, cash payment for a few fruit trees to be affected by re-alignment of an access road. Each RAP must include signed asset inventory forms, the preliminary register of affected persons and compensation agreements signed by the affected person and endorsed by the leader of the local community.

4.10 Process of Reviewing, Approving And Disclosing The RAP

The RPT will submit the draft RAP report to the PPIU for review. Since the APs already know the main elements regarding sub-project implementation particularly compensation, these can now be disclosed officially. However, detailed compensation for each affected person can only be known when the final drafts of the RAP and the overall sub-project plan have been approved. In section 2.3 above, the PPIU is responsible for reviewing all sub-project proposals and plans prepared by municipal level organs. In the same way the sub-project RAPs, which form part of the overall sub- project plans, must be reviewed and approved by the PPIU. As a WB funded project, the document will also be submitted to the WB for review and approval.

4.11. Preliminary Tasks

Before planning and implementation of the first sub-project commences the RPT will ensure that a number of preliminary tasks are completed in preparation for the resettlement planning process. It is recommended that local or regional technical expertise encompassing experience in resettlement and compensation issues be engaged to assist the municipal administrations, particularly during the early stages of the project. Such technical assistance may only be required on an ad hoc basis, depending on the number and spacing, in time, of individual sub-project RAPs. The technical assistance for environmental assessment and management recommended in the ESMF may well be able to fulfill this function.

ƒ An initial task will be for the RPT to design and produce standard forms and formats to be used during the RAP preparation process. These will include, for example: ƒ Environmental screening check lists to be used to determine whether a RAP, of one form or another, needs to be prepared for each individual sub-project; survey forms to be used, where necessary, for collecting baseline information on APs (or entities) and other project affected people within the footprint of the sub-project. These forms will be used to record the manner of likely displacement, whether physical, economic or social, and the extent of the displacement; ƒ A framework letter to be provided to APs summarizing the RAP process and indicating the rights of APs and the grievance procedures available; ƒ Asset inventory forms to be used for each AP (or entity) to quantify and qualify the assets which will be temporarily or permanently affected by sub-project activities (see Annex 4 and 5); ƒ A standard preliminary register of APs (or entities), the displacement to be suffered, affected assets and the corrective (resettlement and compensation) measures subsequently taken during implementation; ƒ Compensation agreement contracts to be signed by APs or entities and the RPT. These will record the final agreed compensation and resettlement entitlements (Annex. 6); ƒ Ad hoc compensation claim forms to be used by persons or entities who suffer displacement or damage to property and assets during sub-project implementation, where such displacement or damage was not foreseen during RAP preparation; ƒ Entitlement receipt forms to be signed by beneficiaries on receipt of compensation and/or resettlement entitlements; and ƒ Grievance registration forms.

4.12 Training

Within the first year of project implementation it is proposed that relevant district level technical staff, including field extension staff be trained in a number of aspects of resettlement planning and implementation. It is proposed that training be provided by an Angolan or regional service provider experienced in social impact assessment and resettlement planning and implementation.

The main focus of training would be on:

• Completing environmental check lists together with local communities; • Legal issues related to compensation and resettlement; • Carrying out baseline surveys; • Valuing assets; • Determining resettlement entitlements; • Participatory community planning; and • Preparation of resettlement action plan documents

5 LEGAL FRAMEWORK

Angolan legislation does not directly address issues related to resettlement. Resettlement issues appear indirectly in the law dealing with environmental management and land matters. In terms of the environmental law, certain projects are subject to the process of environmental impact assessment. This law obliges the project proponent to apply to the environmental authorities for environmental screening by, among other requirements, providing relevant project description and documentation to enable the authorities to assess the need for environmental impact assessment. If the environmental impact assessment is required, one of its important requirements is the undertaking of a comprehensive public consultation process.

With regard to the use and exploitation of land, the law is somewhat inconsistent with a number of different legal instruments being applied by a number of agencies in different situations and geographical areas. The Land Law passed by the parliament in 1992 stipulates that all land belongs to the state. However, it implicitly recognizes the traditional land ownership and exploitation systems that exist in rural areas of the country and stipulate that land acquisition in traditional communal areas must be approved only after the recommendation of the local Soba or traditional chief. Individuals or associations and related corporate bodies requiring land below 1000 hectares can obtain authorization of land use and exploitation rights by formally applying for the same from the Soba. The Soba has the responsibility of identifying, demarcating and allocating the land by issuing the recipient with a no-objection certificate. The applicant is then required to present this no-objection certificate from the Soba to the provincial offices of the Ministry of Urbanization and Environment who issue provisional land use title. This provisional title is valid for five years after which the title holder will apply for an Intermediate Title that is valid for a further 18 years and which is issued upon verification of actual use of the land. It is after the expiration of 18 years and upon evidence of proper use that a definitive title for 45 years can be obtained. The Minister of Urbanization and Environment must authorize land in excess of 1000 but less than 10,000 hectares. The Cabinet must approve land in excess of 10000 hectares.

The same law makes provision for individuals to buy land from the state, although the process can be very bureaucratic, obscure and expensive in practice. Thus, it is very likely that most of potential project beneficiaries do not possess official title to the land they occupy and use. Most people in rural areas rely on informal arrangements, including an unofficial land market, to obtain land. While the arrangements are not strictly legal, communal authorities usually recognize them.

Land use rights can be withdrawn by the state in the public interest or through failure to demonstrate any practical measures of exploiting the land and in such situations the land reverts to the state. However, the state has the responsibility for paying fair compensation for any losses and improvements.

There is no specific resettlement policy and regulatory framework. The Land law only specifies compensation payment for expropriated land, which is done in the public interest. It is silent on compensation issues such as the principles, forms, eligibility, valuation, adequacy, procedures, timing and responsibilities.

There is no legal mechanism for affected persons to appeal against compensation paid or other resettlement measures. The only legal recourse available to affected persons is the courts of the country. Fortunately, there are well-established local mechanisms for conflict resolution concerning land among local communities.

In the absence of a comprehensive resettlement legal and policy mechanism in the country, it is recommended that the requirements of WB OP 4.12 will become the operational policy framework on all sub-projects requiring displacement.

6. ELIGIBILITY CRITERIA FOR VARIOUS CATEGORIES OF AFFECTED PEOPLE

6.1. Cut-Off Date

It will be important to set a cut-off date early on in the preparation process in order to avoid speculation and spurious claims. An appropriate cut-off date is the time when the baseline survey, census and preliminary asset inventory is undertaken, which is soon after when the location of sub-project infrastructure is identified on the ground.

6.2 Eligibility Criteria for Entitlements

Based on the initial definition of different categories of potential APs those categories of APs that will be eligible for compensation and resettlement entitlements will be identified and the type of entitlement that each category will be eligible for will be determined by the RPT. Eligibility of categories of APs may be based on location, land tenure, ownership or renting of property, land use and the type and extent of loss or displacement to be incurred. For MOSAP sub-projects land tenure status will not affect eligibility. Specific criteria for each sub-project will need to be agreed to with the IDA/EDAs in consultation with the APs and other affected parties.

The following is a guideline for considering the nature of entitlements for specific eligibility categories:

Land Individuals or groups have land use rights that can be divided into the following categories:

• Those who have formal land use title issued by the state. • Those who have no formal title but occupy the land according to traditional usufruct systems. • Those who have no formal title and are not on traditional land holdings • Those who rent the land they are using • Those who use the land temporarily for obtaining natural resources • Those who use the land for purposes of access to other areas.

All these categories of people may be affected by a sub-project infrastructure. According to O.P. 4.12, all of them are to be treated as affected people by the resettlement program.

Where APs lose an appreciable part (i.e. more than 20%) of their agricultural or productive land or in cases when the remaining assets are not economically viable they will be entitled: • Full compensation through provision of replacement land of equal productive capacity; • Full compensation at full replacement cost of immovable assets associated with the abandoned land (e.g. water supplies and out-buildings) through replacement of the assets or cash compensation; and • Appropriate transfer and inconvenience allowances and/or subsistence support allowances to cover the transitional period and other development assistance as may be agreed.

Where APs lose only small areas (less than 10%) of their agricultural land or productive land or in cases where the remaining land is economically viable, they will be entitled to: • Full compensation through provision of land if available and practicable; or • Where it is not practicable to provide alternative land contiguous or near the original plot of land, full compensation in cash or kind at a rate to be determined and agreed upon by the parties, but probably based on the medium to long-term production potential of the land in question.

Informal occupiers of land are not entitled to compensation as such but will be provided with an alternative site.

Crops and trees

Replacement of damaged or lost crops will be based on full market value for one year’s harvest using the price that prevails mid-way between harvests. For fruit trees, other trees of economic value and perennial crops the compensation will be based on a cash payment for lost production potential of the tree during the period while replacement trees come into full production.

Residential houses and other structural improvements to the land

Circumstances will vary from one sub-project to another but entitlements will be guided by the following: • Full compensation through provision of alternative residential land of equal characteristics and advantages where the original holding is no longer viable as a residential plot; • Full compensation at replacement cost of the entire asset (e.g. house) through cash compensation or the provision of building materials and building costs; • For urban houses, which can be transferred to other parties together with the land use and benefit rights, full compensation at replacement cost which reflects the market value of the structure, including the implicit value of the land, through cash compensation, provided that this exceeds the full replacement cost; • Full compensation at replacement cost for minor or temporary damage which can be repaired, either by restoration of the damaged asset, through cash compensation or through provision of materials and building costs; and • For tenants who have been renting a house, a cash grant for a specified number of month’s (e.g. two months) rent at prevailing market rents for the area as well as assistance in finding alternative accommodation. • Informal occupiers

Business structures and business opportunity

• APs will be entitled to: • The provision of alternative business sites of equal advantages acceptable for customers and satisfactory to the APs;

• Cash compensation for structures at full replacement cost; • Cash compensation for the loss of income and opportunity during the transition period; and • Reimbursement of employee wages, if any, during the transition period.

Permanent employees

Depending on individual circumstances permanent employees who lose their jobs, either on a temporary or permanent basis, due to the acquisition of land and infrastructure for the project, may be eligible for a loss of earnings allowance.

Graves

Where graves are located on affected land negotiations will be conducted with the next of kin based of traditional burial practices as determined by the traditional leaders. They will be offered financial and logistical assistance for exhumation, reburial and necessary ceremonies.

Other measures In terms of agreements reached APs may be eligible for additional measures, extra to normal compensation and resettlement measures. These might, for example, include: • Allowances to cater for general translocation expenses, inconvenience, "nuisance" and disturbance (e.g. noise and dust) and for "intangible" items that are not easily included within other forms of entitlement; • Support after displacement, for a transition period, in order to restore livelihoods and standards of living, if these are affected; and • Development assistance (e.g. credit facilities, land preparation, training and job opportunities.

7. VALUING AFFECTED ASSETS

The Land Law and other legislation do not specify how assets should be valued for compensation purposes, except that the compensation should be just. For example, in recent projects in Mozambique the valuation of assets lost has usually been arrived at by agreement between project developers and APs, based on the advice of experts in appropriate sectors, such as the construction industry and agriculture and rural development. A similar approach, modified according to local circumstances should be devised with the concerned technical input and be adopted for the MOSAP.

As the need for resettlement measures and compensation is unlikely to be extensive and the circumstances of individual sub-projects are likely to differ, it is proposed that compensation rates and entitlements will be agreed to, in the first instance, between the project developer, (RPT) and the APs based on fair market rates. Traditional leaders will witness this process. Third party experts will be called in where this is warranted. For instance, municipal or provincial staff from the EDA will be brought in to assess the value of crops.

Because displacements are likely to be small and varied it is envisaged that most cases are likely to be settled through direct negotiation between the parties concerned and there will be only a few instances where standard unit rates for costs will be able to be applied. In compliance with the requirements of the WB OP 4,12 compensation will be based on full replacement cost at the time of displacement or pre- project, whichever is higher. This will be the value determined to be fair compensation for any property, the actual cost of replacing houses and structures (based on current fair market prices of building materials, labor and transport, without depreciation or deduction for salvaged materials) and the market value of crops, trees and other commodities.

Individual circumstances will differ but the following guidelines will be applied to compensation rates and entitlements:

Land

Wherever possible, land that has to be acquired for MOSAP sub-projects will be replaced with land of at least equal area and characteristics. However, when the areas of land involved are very small (e.g. a few square meters of land lost within a AP’s larger land holding) it will not always be practical or possible to provide such small areas of replacement land, particularly if there is no suitable replacement land contiguous or close to the AP’s land holding. In such cases it may prove more practical to offer full compensation in cash or kind.

However, since there is, officially, no land market active in Angola it is difficult to determine the rate of compensation based on market values, even though the affected land will be of intrinsic value to the AP. In such cases it is suggested that compensation be determined and agreed to on a case-by-case basis by the AP and the RPT. The factors to be considered will vary from one situation to another. Experts from relevant sectors, such as public works and agriculture will be consulted for action to be taken.

Crops and vegetables

Compensation for the permanent loss of crops and vegetables will be determined on the basis of the value of the production lost. This will be the amount of crop on the land times the local market price halfway between harvests. Local market values vary considerably throughout the country and unit rates will be determined in consultation with local agricultural experts, marketing organizations and local businessmen.

Compensation for the temporary loss of or damage to crops and vegetables will be determined on a similar basis but will take into account the nature and extent of the temporary loss or the damage and the period of temporary displacement.

Fruit trees and trees of economic value

For fruit trees, other trees of economic value and perennial crops compensation will be in the form of a cash payment for the value of production lost while replacement trees come into full production. This will be the average annual yield of the tree multiplied by the unit market price of the fruit or produce and the number of years before the replacement tree comes into full production. As these parameters are variable throughout Angola local production and market figures will be used.

Residential houses and structures

For houses and other infrastructure the compensation value will be determined from standard unit values (e.g. cost per m²) based on current fair market prices of building materials, labor and transport, without depreciation or deduction for salvaged materials. Information regarding local unit costs will be obtained from ministry of public works, and verified with local construction companies and local building material suppliers at current market rates.

Business structures and business opportunities

The loss of physical infrastructure will be determined on the same basis as that for residential houses and structures.

Compensation for loss of income and employee wages, if any, will be determined on a case by case basis, taking into consideration the degree of displacement and average earnings and expenditure for an agreed preceding period.

Once standard unit rates have been determined and agreed to by the parties involved the draft RAP preparation team will apply these rates to the total number of affected assets associated with each category of AP to determine the total value of compensation measures for the sub-project.

8. ORGANIZATION, PROCEDURES AND RESPONSIBILITIES FOR IMPLEMENTATION OF RESETTLEMENT ACTION PLANS

Implementation of a RAP will primarily involve, where applicable, the physical resettlement or relocation of persons or entities displaced from their land and/or the payment of compensation for loss of assets or access to assets. For most MOSAP sub-projects it is not expected that there will be significant need for physical resettlement. The implementation process will vary according to the nature of a particular sub- project and the type of entitlements or compensatory measures agreed to. There is no single agency in this country that is responsible for providing resettlement and compensation for cases where people are involuntarily displaced by development projects.

The responsibility for resettlement of people displaced by development project involving communities or some of its members belongs to the state. In this project the institutions that will have the primary responsibility will be the provincial and municipal governments. Within government, the agencies responsible for addressing resettlement issues on the project will be the provincial IDA and the EDA at the municipality.

A summary of the implementation process is presented in Annexure 8.

8.1 Integration Of A Resettlement Action Plan Into An Overall Subproject Plan

Once a sub-project RAP has been approved the RPT will be required to integrate the elements of the RAP into the overall sub-project plan, budget and implementation schedule. The implementation schedule will show that no sub-project construction work (or activities that will cause displacement) will take place until all entitlements (including physical resettlement, if any) are delivered.

8.2 Detailed Determination Of Entitlements

It is only after the final approval for a particular sub-project has been given and after detailed survey and planning work has commenced that the final location of sub-project infrastructure is likely to be accurately known. It will therefore be necessary for the RPT to update the information contained in the RAP and to prepare a final, more detailed, inventory of APs and the displacements to be suffered. Final project costs will be determined after the final negotiations concerning entitlements and values have been held with the developer. Final entitlements will be approved by the CMAC and should not differ considerably from the estimates contained in the sub-project RAP.

8.3 Entitlement Agreement Contracts

For each AP the entitlements (i.e. compensation and resettlement measures) should be recorded on an entitlement contract form that should be signed by the relevant AP and the RPT (Annexure 6). Details of entitlements due to each AP should then be entered in the asset register against the name of the recipient.

Where the RPT and an AP cannot reach agreement on entitlements due to an AP, either party will be able to bring its grievance to the municipality level coordination committee in the first instance. Where the municipality coordination committee is unable to satisfactorily resolve any grievance the aggrieved party will then be able to appeal to the PPCC and then to the PCC at the national level, with final redress to the courts. 8.4 Replacement Land and Resettlement

8.4.1 Selection and Allocation Of Replacement Land

No significant amount of physical resettlement of people is envisaged for the MOSAP subprojects. However, should a RAP indicate that physical resettlement is necessary the RPT will be responsible, on behalf of the APs or entities, to identify and acquire suitable alternative land, which should be as similar as possible, in terms of size and quality, to the original land acquired for sub-project purposes. Actual selection of land should be undertaken in consultation with the relevant local authorities and technical institutions, together with the APs.

Once an alternative site has been selected and agreed to, the RPT should apply through the relevant local authority or community for the land to be officially allocated to the beneficiary. If the replacement land is in an area where land issues are governed by customary norms and practices suitable allocation arrangements must be made with the local administrative and traditional leadership. If the replacement land is in an area where land issues are not governed by customary norms and practices the developer will need to follow the proper procedures, on behalf of the beneficiary, for official land allocation, registration and, possibly, issue of title in terms of the Land Law and Regulations. The procedure requires an application to be made through the district administration to the provincial offices of the Instituto Geografico Cadastro da Angola (IGCA).

IDA/EDA will have a role to play in registering individual land holdings and crops that will be lost in rural areas. The Provincial Services of IGCA have a key role to play in identifying land boundaries and tenure status of affected property. Concurrent with the process of replacement land selection, allocation and registration, the developer will need to initiate the process of having the existing land usage rights of the APs cancelled in accordance with the Land Law. The Land Law and Regulations do not stipulate exactly what procedure has to be followed but the first step will be for the developer to apply through the relevant local authority. Depending on the size and location of the land involved, extinction of existing land rights will be undertaken through the offices of the Provincial Governor. Cancellation of existing land rights should only be effective upon the allocation of alternative land.

8.4.2 Land Planning And Preparation

Before any person or entity to be physically resettled is displaced from land being acquired by a sub- project, the RPT will ensure that any necessary or agreed land survey, land planning and land preparation work is completed. Land preparation may, for example, include land clearing, ploughing, demarcation and construction of access roads or tracks. If the applicant does not have the required expertise the developer will hire qualified personnel or public or private sector agencies to undertake the work.

8.4.3 Relocation to Replacement Land

The RPT will be responsible for assisting persons or entities that are required to relocate to alternative land with transport to move people and assets to the new site. No APs or entities will be required to move to a new site unless any necessary infrastructure, as agreed in the RAP, has been constructed satisfactorily. The applicant will also be responsible for ensuring that any additional resettlement measures agreed to in the RAP are implemented or initiated. People to be physically resettled will have to

22 be relocated to the new site at least one month before sub-project construction activities can commence, or in accordance with some other time period agreed to during RAP preparation.

8.5 Compensation

8.5.1 Payment of Compensation

For sub-projects the most common type of entitlement is likely to be the payment of compensation, in cash or kind, for loss of assets, loss of access to assets, loss of income earning opportunities and damage to assets. It is envisaged that, in most cases, it will be more practical and more acceptable to all parties for monetary compensation to be paid. In some cases, however, it may be agreed that compensation be provided in kind, including the physical replacement of infrastructure and assets adversely affected by the sub-project.

Compensation will be paid to the beneficiaries at least one month before sub-project construction activities can commence, or in accordance with some other time period agreed to during RAP preparation. The applicant will be responsible for paying each beneficiary in accordance with the agreed entitlements listed in the entitlement contract forms and the main asset and award register. Compensation will be provided as cash or a cheque according to the preference of the beneficiary.

8.5.2 Compensation for unforeseen displacement and damage

The construction activities of individual sub-projects may lead to small amounts of additional displacement not foreseen during the preparation of the RAP. Construction activities may also cause some additional temporary or permanent damage to land and assets that cannot be identified or quantified during RAP preparation. An example might be construction workers trampling crops or vegetables while accessing particular construction sites.

In such cases, affected parties will be required to complete a compensation claim form and submit it to the developer. The applicant will then negotiate the required compensation measures, based initially on the standard unit values determined during RAP preparation, and then obtain agreement from the EDA. Payment of compensation will be effected within one month of submission of the claim form.

8.6 Confirmation of Receipt Of Entitlements

Each beneficiary will be required to sign an entitlement receipt form confirming receipt of the entitlement, whether as physical resettlement or compensation in cash or kind. The entitlement receipt form will also be signed by the applicant and witnessed by a representative from the local authority (e.g. municipal administrator) or by the local or traditional leadership (the Soba). This document should be included in the Project Dossier

8.7 Progress Monitoring and Reporting Throughout the implementation process the applicant will be required to keep records of all progress and to submit regular reports to the municipal level committee and PPCC indicating the level of progress achieved and showing that various tasks have been completed. The municipal level will verify that the progress report is a true record. The interval of progress report submission will be determined in advance in accordance with the scope and nature of the compensation and resettlement exercise.

On completion of the compensation and resettlement implementation activities the EDA will issue a sub- project resettlement and compensation completion certificate to the applicant.

9 CONSULTATIONS WITH, AND PARTICIPATION OF, AFFECTED PEOPLE

9.1 Consultation with Affected Persons

Consultation with APs will take place early in the process of draft RAP preparation. Before the baseline survey of impacts is conducted the RPT will carry out a reconnaissance survey to identify the people and communities affected by a sub-project. During the survey, comments and opinions of APs, traditional or local leaders, local communities and local administrations will be collected and passed onto the sub- project designers and planners.

Continued consultation and participation will take place during the more detailed baseline survey after the extent of sub-project affected areas is known. During the survey, every potentially affected household or business will be visited and survey results reviewed.

Compensation, relocation and rehabilitation measures will be discussed and agreed to with APs. In developing the RAP APs and other stakeholders will be given opportunities to discuss the resettlement measures, compensation policies and rehabilitation measures and to make site selection for replacement land, if necessary.

Such consultation will be continued by the developer through implementation which will include signing entitlement agreement contracts, delivering entitlements to APs, providing replacement land and restoring any affected community structures. During draft RAP preparation the preparation team will be required to clearly describe the consultation and participation measures to be used.

9.2 Grievance Redress Mechanism

APs will be provided sufficient opportunities to review baseline survey results and compensation policies during the process of RAP preparation and implementation. However, during implementation various issues might be encountered by APs. Unforeseen damage to assets by construction equipment is one of the most common problems. In order to resolve concerns that may occur at any time during draft RAP preparation and implementation effectively and quickly a grievance redress system will be set up by the municipal level committee.

The form of grievance handling procedure varies depending upon the circumstances of each sub-project. Where there is a relatively high literacy rate among the APs, a letter addressed to each AP explaining the procedures and venue for delivering the complaints can be sufficient to assist APs to raise their problems. However, in other situations, the most effective procedure is for the local or traditional authority representative or stakeholder representative who serves on the RPT to serve as a focal point for receiving complaints from APs, channeling them to the RPT, and taking feedback to the aggrieved AP.

Under the proposed grievance procedure, if an AP is dissatisfied with a resettlement or compensation measure or the delivery of entitlements, he or she could voice a complaint in the first instance to the municipal level, through his or her representative. This may initially be done through local leaders (e.g. tribal leaders or local government leaders). The AP will require an answer within a specified period, e.g. fourteen days. If no satisfactory reply is forthcoming to the AP he can appeal to the PPCC and then finally to PCC national level. APs will have final redress to the courts.

10. MONITORING ARRANGEMENTS

25 carried out in order to monitor progress and ensure that APs are adequately catered for and are left in a position no worse off than they were prior to subproject commencement. Draft RAPs will be required to list the monitoring and evaluation arrangements for individual sub-projects. Monitoring and evaluation should be part of, or be closely aligned to, the monitoring and evaluation process agreed to for monitoring of other environmental impacts in terms of the sub-project environmental management plan, where applicable.

For internal monitoring the project applicant will be required to submit regular reports to the municipal level and PPCC outlining progress in relation to targets and delivery of entitlements. The monitoring should address the following: • Delivery and usage of compensation and resettlement entitlements; • Allocation of replacement land and residential plots, where applicable; • Reconstruction of new houses and other infrastructure, where applicable; • Compensation measures applied to cater for damage during construction activities; • Reported grievances and action taken; • Meetings with officials and APs; • Problems encountered and action taken; and • General issues related to the success of the compensation and resettlement exercise.

In addition to World Bank supervision mission, an external and independent audit will be organized to evaluate the resettlement process. The main objective will be to determine whether the objectives of the resettlement (compensation, relocation and rehabilitation) have been achieved and to assess, to the extent possible, implementation of resettlement and the restoration of the livelihoods of APs. The external monitoring and evaluation exercise should include, but not be limited to, evaluation of: • Implementation progress; • Compensation and resettlement policies; • Delivery of entitlements, including replacement land where applicable; • Changes in livelihoods and incomes among APs; and • Consultation with and participation of APs and other stakeholders.

The external monitoring should preferably occur at least once a year, depending on the size and complexity of the compensation and resettlement component of the sub-projects. Post- evaluation should also be undertaken some time after the APs have adjusted to their new circumstances.

11 PROGRAMMING AND SCHEDULING

The sub-projects that may trigger resettlement have yet to be identified. Consequently the type, size, location, possible date of commencement of construction neither of the required infrastructure nor of its operation, can be determined at this stage. It is therefore not possible to give precise dates for the implementation and completion of the various tasks of the sub-project RAPs. It is however, essential that the RPT be fully informed at the start of the overall planning stage of the sub- project of two very critical dates: • the date of commencement of infrastructure construction • the date of commencement of operation of the infrastructure.

This information will guide the RPT in preparing a resettlement schedule that not only fits into the overall sub-project plan, but also will determine when construction of the infrastructure can begin. For the O.P. 4.12 specifies that no construction can start unless and until the RAP has been fully implemented, including the delivery of all entitlements. Furthermore, during construction, the RPT should ensure that

26 all compensation arising from unforeseen construction damage is paid within the stipulated timeframe of 30 days failure of which should result in stoppage of construction activities. With regard to agricultural land, it is not only essential that replacement land is provided before construction can begin, but more importantly it be made available before the start of the planting season, failure of which will oblige the proponent to provide subsistence food allowance to APs until the time when the crops to be planted during the next planting season would have been harvested.

12 FUNDING AND INDICATIVE BUDGET

It is not envisaged that many sub-projects will require land acquisition, which will cause displacement and lead to the need to relocate and/or compensate affected people. Nevertheless, an indicative budget is provided below to ensure that funds are allocated for resettlement should the need arise. Without knowing the number of sub-projects that will be put forward, planned and implemented, it is difficult to estimate possible costs. For the purpose of the indicative budget it is assumed that an average of 50 sub-projects (2 per commune) will be proposed per year over a five-year implementation period from Year 2 to Year 6 of the project (as it is not envisaged that any sub-projects will be identified and planned during the first year). It is, therefore, assumed that some 250 sub-projects will be submitted for funding during the full project period.

Provision is included in the budget for training provincial IDA, municipality, EDA and other government staff in aspects of resettlement plan preparation, implementation and monitoring. This is based on training ten staff members in Year 1 or 2 and a further ten in Year 3 (as other districts are included in the project). The estimated cost per group of ten is estimated to be US$ 8250, calculated from ten trainees for five days at US$ 165 per day for accommodation, allowances and materials. To this is added US$ 1 650 for contracted trainer input to give a total estimated cost of US$ 9 900 per group of ten. The total estimated training cost for both groups is US$ 19800.

As this is a government owned and managed program, resettlement should be viewed as an activity to be taken in the public interest. Therefore, all costs associated with resettlement of sub-project infrastructure should be borne by the government through the relevant line ministry, in this case MINADER.

In terms of flow of funds, it is proposed that the resettlement funds be allocated from IDA (national) and deposited into an account at IDA-provincial. From there payments can be made after review and approval of the sub-project expenditure. This could be in the form of a cheque, which can be passed onto the municipality EDA from where the beneficiary or contractor could be paid.

As it is not possible to know the total number of sub-projects, the number of sub-projects that will require resettlement or the nature and extent of relocation and/or compensation required for those sub-projects that do involve resettlement, an average resettlement cost per subproject has been assumed, based on an estimated total of 250 sub-projects. The calculation of the estimated average cost per sub-project is presented in Table 1. Resettlement costs will obviously vary from one sub-project to another (it is anticipated that most sub-projects will not involve resettlement).

Based on the global training cost and the average resettlement cost per sub-project the total resettlement budget is estimated to be US$ 1,338550 as shown in Table 2. In order to ensure that the compensation and resettlement component will be implemented smoothly efforts will need to be made to develop realistic cost estimates during preparation of the draft RAP. It is accepted that not all eventualities will be foreseen and a reasonable contingency (5%) should be included. After approval by MINUA, the RAP budget will need to be approved as part of the overall sub-project budget.

Table 1: Indicative Budget For a Sub- project RAP S.no Item Input Cost/ Sub-project,$ 1 RAP Preparation Allowance for tech.staff, 2 100 days @$50 2 Compensation & 1 House, 20 sq.m@ $30’ 300 Relocation costs 40 Orange trees@$100 4000 0.1 Hectare Annual 100 crops@$1000 1 Grave@ $200 200 5% Contingency 230 3 Relocation& Allowance for Tech.staff, 2 100 Const.supervision days@ $50 4 Monitoring & auditing Global 50 5 Total sub-project 5080

Table 2: Indicative Budget S.no Item No. Rate,$ Total cost,$ Years Funding source 1 Training 2 9900 19800 1 and MINADER groups 3 (PISB) 2 RAP Preparation 250 65 16250 “ 3 Compensation& 250 5080 1,270,000 “ relocation 4 Relocation& 250 65 16250 “ Const.supervision 5 Monitoring& 250 65 16250 auditing 6 Total 1,338,550

Detailed costs estimates will be based on a comprehensive inventory compiled during the baseline survey and the actual replacement costs. The RAP will contain detailed costs of compensation, relocation, and rehabilitation with a breakdown of costs for: • Agricultural land • Residential • Business • Housing infrastructure. • Business losses • Graves • Other assets • Public services and facilities.

Other related costs, such as surveying, planning, consultancy, supervision, miscellaneous entitlements and monitoring will also be estimated. As part of the ongoing progress reporting exercise, the RPT will be required to submit details of expenditure on all aspects of implementing the compensation and resettlement component of the sub-project.

ANNEXURES

Annexure 1: Number of Beneficiaries by Province, Municipality and Commune.

Province Municipality Commune Population of Households per Farming Communes Commune Households Bié Andulo Calucinga 89,429 17,886 16,992 Chivaulo 109,338 21,868 20,774 Catabola Catabola 96,066 19,213 18,253 Chipeta 20,138 4,028 3,826 Chinguar Cangote 72,972 14,594 13,865 Cutato 94,414 18,883 17,939 Camacupa Muinha 39,727 7,945 7,548 Kuanza 20,722 4,144 3,937 Sub-total 542,806 108,562 103,134 Huambo Bailundo Bailundo 77,118 15,424 14,652 Lunge 45,889 9,178 8,719 Londuimbali Alto Hama 27,327 5,465 5,192 Soque 13,411 2,682 2,548 Mungo Mungo 87,763 17,553 16,675 Sub-total 251,508 50,302 47,787 Malanje Cacuso Sede 22,800 4,560 4,332 Lombe 18,390 3,678 3,494 Kalandula Kuale 15,500 3,100 2,945 Kota 32,800 6,560 6,232 Sede 29,200 5,840 5,548 Caculama Sede 23,765 4,753 4,515 Caxinga 11,020 2,204 2,094 Muquixe 13,175 2,635 2,503 Kwaba-Nzogi Mufuma 21,245 4,249 4,037 Sede 39,750 7,950 7,553 Malanje Cambaxe 18,800 3,760 3,572 N’gola- 15,995 3,199 3,040 Luige Sub-total 262,440 52,488 49,864 TOTAL project 1,056,754 211,352 200,785 area

Annexure 2: Broad Categories of Affected Persons Eligible to Receive Benefits

CATEGORY OF POSSIBLE LOSSES ADDITIONAL NEED FOR DISPLACED PERSON ADVERSE IMPACTS RELOCATION Residential site and house Accommodation To new site Legal occupant with Cost moving legally recognized right to Business site and structures Business premises To new site use and benefit from land Business income and profit (with or without title Cost moving documents) Other structures Value and use of structures Agricultural land Productive resources To replacement fields Residential, business, Food and income sources farmer or mixed Crops and trees Food and income Rented residential Accommodation To alternative rented accommodation Cost of moving accommodation Advanced rental payments Rented business premises Business accommodation To alternative rented Tenant (formal or Business income and profit premises informal) Cost of moving Other structures belonging Value and use of structures Residential, business, to tenant farmer or mixed Rented or borrowed Productive resources To alternative rented land agricultural land Food and income sources Crops and trees belonging Food and income to tenant Access to residential site Accommodation To new site and house Cost of moving Informal occupier of Access to business site and Business premises To new site public land operating at structures Business income and profit fixed location (with or Cost of moving without fixed structures) Other structures belonging Value and use of structures to occupant Settler (squatter), business Access to agricultural land Productive resources To replacement fields or cultivator (encroacher) Food and income sources Crops and trees belonging Food and income to occupant Permanent employee of Employment (permanent) Employment income APs (longer-term) Next-of-kin of people Access to land Cost of moving grave buried in graves Grave and tombstone (total)

Annexure 3 Proposed Entitlement Matrix

CATEGORY TYPE OF ENTITLEMENTS OF LOSS CASH RELOCATION TRANSITIONAL OTHERS DISPLACED COMPENSATION ASSISTANCE ASSISTANCE PERSON FOR LAND AND STRUCTURES Legal Land Replacement land Disturbance occupant Site to be of equal allowance with legally or better potential recognized than abandoned site right to use Buildings, Cash compensation Transport Business: Loss of No moving to be and benefit structures and at full replacement allowance profit allowance done until from land fixed assets cost. For crops: at OR reconstruction is (with or (including crops determined market Farmers: Loss of complete without title and tree crops) value of crops farm income or documents) (based on food sources production covered by cash (Residential, potential) compensation for business, crops farmer or mixed) Access to rented No loss of land and Free transport by Disruption Free assistance land, property buildings belonging project of goods allowance by project to and to tenant to new Loss of find alternative accommodation accommodation accommodation, accommodation or premises business income or Free assistance farm income or by project to Tenant food sources: No obtain refund of (formal or loss. Tenant to be advance rental informal) provided with three payments from months notice by owner landlord Residential, Fixed assets Cash compensation business, (including crops at full replacement farming or and tree crops) cost. For crops: at mixed belonging to determined market tenant and value of crops ( installation based on production agreed with potential) landlord Informal Access to land, No loss of land Free transport by Disruption Option for AP to occupier of site or spot belonging to project of goods allowance relocate (free) to public land occupant to new site nearby operating at replacement site fixed location or spot provided (with or by project. Site without fixed to be of equal or structures) better potential than abandoned Settler site (squatter), Buildings, Cash compensation Loss of farm No moving to be business or structures and at full replacement income or food done until cultivator ( fixed assets cost. For crops: at sources covered by reconstruction is encroacher) (including crops determined market cash compensation complete and crops) value of crops for crops belonging to (based on occupant production potential) Employment No loss of land and Loss of earnings earnings ( buildings belonging allowance for

temporary or to employee period of expected long-terms temporary or longer-term unemployment Permanent (equivalent to employee of actual monthly APs wage of AP multiplied by expected number of months of unemployment). To be individually assessed. Next-of-kin Access to land Option for AP to of people relocate grave in buried in alternative burial graves site provided by the authorities Graves and Cash compensation tombstones to relocate graves and for ceremonies As for other Vulnerability Special Vulnerable categories allowance at 5% of assistance from people normal project on a case compensation by case basis payable

Annexure 4: Example of Register of Housing Infrastructure

Dimensões e coordenanadas das casas do agregado familiar

Data------

1. Nome de Chefe do Agregado Familiar( Dono da casa)

______

2 Bilhete de identificação------3 Communa------Zona------4 Coordenada da casas No. Tipo da casa Coord. X Coord. Y 1 Casa principal 2 Cozinha 3 Celero 4 C. de banho 5 Outra

5. Informação Sobre Dimensões Das Casas

Dimensões da No. de Material de construção Observações casa divisões (m x m) Parede Tecto Chao (*) ( ** ) ( ***)

Nota: *Parede: 1.Bloco,2.Adobe 3. Madeira e zinco 4. Maticado. ** Tecto: 1. Betão 2. Telha 3.. Chapa de zinco 4. Capim *** Chão: 1.Cimento 2. Adobe 3. Terra batida.

Annexure 5: Example of Register of Crops and Trees.

Tipo de No.de Produção Plantas Plantas Custo Custo Custo/planta Custo Custo cultura culturas,plantas por produtoras não /planta total das não total das total ou area ( m x campanha produtoras produtora plantas produtora plantas m) ou area produtora ou area (m não (m x m) xm) pordutora Mangueira Cajueiro Laranjeira Arrozal Milheiro Feijao Batata Outras “ “ “ “ “

ANNEXURE 6: EXAMPLE OF ENTITLEMENT AGREEMENT CONTRACTS

PROGRAMA DE REASSENTAMENTO.

Termos De Compromisso

Eu______portado de B.I______

proprietário de terreno a ser afectado pelo projecto de______na zona de______aceito pela minha livre vontade receber______Kwanzas em compensação pela perda das minhas culturas, arvores fruiteiras e outros bens materiais. Proser verdade assino estes termos de compromisso ______que tambem são assinados pelos representantes de:

Propretário ______, Assinatura ______

Representante de SOBA de______, Assinatura______

Representante de Administrador de______, Assinatura______

Representante de MOSAP______, Assinatura______

______(Local)a os ______

35 ANNEXURE 7: SUGGESTED PROCEDURE FOR DRAFT RESETTLEMENT ACTION PLAN PREPARATION, REVIEW AND APPROVAL

EDA completes preparations tasks-screening forms, etc.

Environmental screening forms completed by EDA and communities

Screening form submitted to MINUA, which decides if RAP required

RAP required No displacement OR there is displacement BUT voluntary land donations will occur

EDA establishes RAP preparation No RAP required team (RPT)

RPT indicates location of proposed infrastructure

RPT undertakes baseline survey, identifies APs, determines nature of displacement & completes affected asset inventory forms and preliminary register

All APs given letter or sub-project fact sheet

Asset inventories checked by EDA

RPT assigns potential APs to categories

RPT determines eligibility of each category of APs for various types of entitlements

RPT submits valuation methodology and standard unit rates to CMAC for approval

RPT applies unit rates to individual categories of APs to determine total value of entitlements

RPT completes draft RAP report- with asset inventories

RPT submits completed draft RAP report to CPAC for review

RPT submits draft RAP to CPAC for review and approval in terms of Angolan environmental regulations and WB requirements

Draft RAP approved Draft RAP not approved

Sub-project abandoned or draft RAP amended

Approval given for the sub-project RAP

ANNEXURE 8: SUGGESTED PROCEDURE FOR IMPLEMENTATION AND DELIVERY OF ENTITLEMENTS

EDA integrates RAP elements into overall sub-project plan and implementation schedule NO CONSTRUCTION WORK TO COMMENCE UNTIL ENTITLEMENTS DELIVERED

EDA agree to activity monitoring and reporting procedure to be followed during implementation of the resettlement and compensation component of the sub-project

After detailed sub-project survey and Disputes & grievances planning RPT negotiates final referred to EDA, PPCC or entitlements and value with APs PIU or courts

APs signs entitlement contracts

RPT, APs, local authorities and sector specialists select suitable alternative land where physical resettlement of APs is required

RPT applies to local authority (or local traditional and administrative leaders) for land to be officially allocated to resettled APs

RPT initiates process for extinction of land rights related to land involuntarily abandoned by APs RPT pays compensation (in cash or kind) to eligible APs in accordance with the Entitlement Contracts and agreed valuations – in good time before sub- project construction activities commence. Applicant provides cash or materials (plus transport & other costs) to enable relocating APs to establish replacement infrastructure at the new site

RPT ensures that any necessary land survey, land planning and land preparation work on new resettlement sites is carried out

APs (or other entities, depending on agreements made) establish replacement infrastructure (e.g. houses) at the new resettlement site

RPT transports relocating APs and their assets to the new resettlement site in good time before sub-project construction activities commence

Recipients of entitlements sign entitlement receipt forms confirming receipt of entitlements ( i.e. compensation and physical resettlement)

DURING CONSTRUCTION Affected people submit ADDITIONAL compensation claim forms to the RPT for losses or damage occurring during construction and which were not foreseen during RAP preparation

RPT applies standard unit rates for lost or damaged assets or negotiates directly with claimants

EDA approves additional compensation claims and awards

RPT pays compensation to claimants within one month of claim submission

Claimant signs entitlement receipt forms

ON PROJECT COMPLETION EDA confirms completion of s/project RAP and signs off the RAP

ANNEXURE 9: SUMMARY OF THE RELEVANT LAWS PERTAINING TO RESETTLEMENT.

Land Law No/04 of 9 November.

The land law passed by parliament in 2002 does not directly address resettlement. The only reference to alienation or expropriation of land is with regard to compulsory expropriation by the state in the public interest in which case “fair” compensation for lost or affected assets is a requirement.

Other important provisions that we can mention includes the following:

• Article 5: the land is the natural property of the state, and is owned within the private and public domain. • Article 6: Among other things, the land cannot be transferred that may provoke public disorder. Hence indirectly the law recognizes the need for avoiding land transactions, including displacement, which may affect public order. • Article 7: Land transfers are undertaken with the objective of effective use. The owner of land must demonstrate that the land is being used by the activities or infrastructure he installs on the land. The authorities can withdraw land use rights if there is no evidence of use. The area of land to be allocated by the state must not exceed 33% of the capacity of the owner to exploit the land. • Article 9: The state respects and protects the traditional land ownership and exploitation systems. Land belonging to rural communities can be expropriated for public use after fair compensation.

Decree No.51/04 of 23 June: Environmental Impact Assessment.

This decree requires that an environmental impact assessment be undertaken for all projects that may lead to negative environmental and social impacts .In order to assess whether an activity may generate negative impacts, the proposed activity must be subject to an environmental screening process. The proponent of the project is required to submit a request for screening by formally applying to the authorities and providing all relevant information about the project that may facilitate the screening process. Another important requirement is that an environmental impact assessment must include a comprehensive and transparent public consultation process with people and institutions that may have an interest in the activity, its location or its products.