Social Monitoring Report

Semi-Annual Report

Project Number: 31624-023 Loan/Grant Number: L1820/L3110 November 2019

Nepal: Water Supply Project

Prepared by Melamchi Water Supply Project (MWSP) for the Government of and the Asian Development Bank

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

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

TABLE OF CONTENTS

1. BACKGROUND ...... 1

2. PHYSICAL PROGRESS OF SUBPROJECT ROADS ...... 1

3. IMPLEMENTATION ARRANGEMENT ...... 1

4. MONITORING RESULT ...... 2

4.1 Compensation and Rehabilitation ...... 2

4.2 Grievances Redress System ...... 4

4.3 Livelihood Restoration Program ...... 4

4.4 Outstanding Issues ...... 5

5. CORRECTIVE ACTIONS ...... 5

6. FOLLOW UP ACTIONS AND RECOMMENDATIONS ...... 5

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SMR January-June 2019

CURRENCY EQUIVALENTS (as of 03 July 2019)

Currency unit = Nepalese rupee (NRs/NR) NRs1.00 = $ 0.009 $1.00 = NRs109.99

WEIGHTS AND MEASURES

sq. m – square meter

ABBREVIATION

ADB : Asian Development Bank APs : Affected Persons CDC : Compensation Determination Committee CIRT : Community Issues Resolution Team DSC : Design and Supervision Consultant DSC : Design and Supervision Consultant HSMC : Hyolmo Sindhu Melamchi Committee MWSDB : Melamchi Water Supply Development Board MWSP : Melamchi Water Supply Project PAPs : Project Affected Persons PAFs : Project Affected Families PIU : Project Implementation Units PMU : Project Management Unit RAP : Resettlement Action Plan SPAFs : Severely Project Affected Families SSDS : Safeguard and Social Development Support SUP : Social Uplift Program VDC : Village Development Committee (Existing VDCs are now converted into Rural municipality or municipality)

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SMR January- June 2019

1. BACKGROUND

1. The Melamchi Water Supply Project (MWSP) is considered to be the most viable long- term alternative to ease the chronic water shortage situation within the valley. The project is designed to divert about 170 MLD of fresh water to Kathmandu Valley from the Melamchi River in in the first phase. Augmenting this supply by adding about a further 170 MLD each from the Yangri and Larke rivers, which lie in the upstream proximity of Melamchi is also being investigated as further supply sources.

2. Hyolmo Sindhu Melamchi Valley Social Upliftment Program (SUP) Implementation Committee (HSMVSUPIC) has been constituted for the implementation of Social Upliftment Program (SUP). This committee is contributing towards resolving all SUP and other issues relating to Melamchi Water Supply Project in the Hyolmo, Sindhu and Melamchi Valley through community participation. Similarly, Hyolmo Upliftment program (HUP) is underway from 2012 separately for Helambu VDC. In addition, Mandan Valley Social Upliftment Program (MVSUP) is also in existence in Kavrepalanchok.

3. Separate Project Implementation Unit (PIU) at Melamchi and Project Management Unit (PMU) in Kathmandu has been major organizational restructuring under Melamchi Water Supply Project related to Subproject. Similarly, establishment of Hyolmo Sindhu Melamchi Valley Social Upliftment Program Implementation Committee (HSMVSUPIC) in Melamchi Valley, Mandan Valley Social Upliftment Program Implementation Committee (MVSUPIC) and Hyolmo Upliftment Program Implementation Committee (HUPIC) have been formed to support local community development and handling the grievances.

2. PHYSICAL PROGRESS OF SUBPROJECT ROADS

4. CMC Di Ravenna of Italy, an international contractor had been mobilized in January 2013 for civil works construction for tunnel work. CMC had decided to abandon the project on December 2019. All over physical progress of the construction work was about 95 %. Then after no further progress has been archived, as the MWSDB has decided to award Sino Hydro, a Chinese Contractor for completing the remaining tunnel related works of the project.

3. IMPLEMENTATION ARRANGEMENT

5. Ministry of Water Supply and Sanitation is the executing agency for the Project and an autonomous Melamchi Water Supply Development Board MWSDB), formulated for Project implementation, is the implementing agency.

6. Project Management Unit (PMU) coordinates to line agencies like – the ministry, the national planning commission, ministry of finance and other government bodies which needs different services and support while implementing the project. All activities pertinent to communicate with Donors, Experts and Specialist etc. are also a major task of PMU. This includes reporting and maintaining a balance among the government, donors and other stakeholders which are working in different sectors in the project.

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SMR January- June 2019

7. Project Implementation Unit (PIU) mainly refers to the management of Melamchi Camp site Office located at the Melamchi Pool Bazar of Sindhupalchowk district and is responsible for the implementation of construction activities carried by MWSDB. This site office is focused to serve different project related services and support from the field level. Not only this, PIU work at its best to create a friendly working environment at the Project Site.

8. The MWSDB had recruited Social Development Support Consultant (SSDS) on 2009 to provide supports to Safeguards Unit, HSMC and MVSUPIC on the implementation of resettlement plan, environment management program and social upliftment program, However, the term of SSDS completed on December 2018 then the safeguards activities are handling by a senior resettlement officer of MWSDB.

9. Now EPTISA, Design and Supervision Consultant (DSC) is working for designing and supervision of tunnel construction. Only engineering staffs are present in DSC and no safeguards related staff are working.

4. MONITORING RESULT

4.1 Compensation and Rehabilitation

10. The resettlement action plan (RAP) for MWSP was prepared in 2000 and updated on 2008. RAP has provisions to provide compensation packages for all type of project affected assets include additional allowances and assistances for seriously project affected families. Livelihood enhancement trainings were also provided to the members of SPAFs family. The Compensation Determination Committee (CDC) headed by Chief District Officer is responsible for deciding on the compensation (amount) for project affected assets. The RAP emphasizes that compensation should enable project-affected people to maintain their existing standard of living or attain an improved standard of living.

11. The project had started land acquisition and compensation payment activities since 2002 and still it is not completed. About 89 percent compensation payment has been completed as of 31 December 2018. However, some land owners who had not collected their compensation amount due to legal problems or other reasons were still coming to collect the compensation. From January to June 2019, about NRs 3.5 million compensation amount had been distributed by MWSDB.

12. The summary of compensation payment as of 30 June 2019 is presented in table 1.

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Table 1: Status of Compensation payment as of 30 June 2019

As of 31 Progress Cumulative S.N Description December during Jan- progress as of 2018 June 2019 30 June 2019 Summary of compensation payment 1 Total affected households 2,374 0 2,374

Compensated households 2,117 0 2,117

Total compensation amount NRs 0 908,415,223.00 908,415,223 Compensated Amount NRs. 846,055,168 3,515,397 849,570,565 2 Land Total affected land (ha.) 92.75 0 92.75 Compensated land (ha.) 92.15 0.11 92.26

Total compensation amount NRs 0 821,109,706 821,109,706

Compensated Amount NRs. 765,503,454 762,414,057 3,089,397 3 House/structures Total affected households 135 0 135

Compensated Households 133 1 134

Total compensation amount NRs 0 20841408 20,841,408

Compensated amount NRs 426000 19485080 19,059,080 4 Trees/fruit trees Total affected households 636 0 636

Compensated Households 582 0 582

Total compensation amount NRs 0 55,673,787 55,673,787

Compensated amount NRs 0 54,757,159 54,757,159 5 Community Forest (CF) Affected CF 15 0 15 Compensated CF 14 14

Total Amount 6,126,350 6,126,350

Compensated amount 5,160,900 5,160,900 6. Re-imbursement of registration and taxes the AP who bought land from compensation amount

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SMR January- June 2019

As of 31 Progress Cumulative S.N Description December during Jan- progress as of 2018 June 2019 30 June 2019 Total no of APs 204 0 204 Paid numbers 204 0 204 Total Amount 4,663,972 0 4,663,972 Paid amount 4,663,972 0 4,663,972

13. According to MWSP resettlement policy 2001, If any SPAF receives cash compensation for farmland and purchases farmland within 1 year from the date of receiving compensation, the land registration fees for the purchased land and all government taxes and duties related to the acquisition and registration of affected assets will be borne by the project. As of 31 December 2018, 204 land owners, who had collected compensation amount of their affected lands, had provided NRs 4,663,972 for re-imbursement of registration fees and taxes, which they had paid in Land Revenue Offices while buying lands from compensation amount received from MWSP.

4.2 Grievances Redress System

14. Community Issues Resolution Team (CIRT) has been formed in each access road to solve the local level grievances. The members of the CIRT are: project manager, engineer of MWSD, resettlement officer and resettlement assistant of SSDS and representative of DSC. If grievances are not resolved by the CIRT then they are forwarded to executive director of Melamchi Water Supply Development Board. The CIRT was functional as of December 2018 where 17 grievances were recorded and most of them were solved. Remaining 4- 5 grievances related to re-measurement of acquired land, demarcation of acquired land, irrigation canal damaged etc. are still in settling process. After December 2018, the CIRT is almost non-functional and grievances have not been registered as of 30 June 2019.

4.3 Livelihood Restoration Program

15. As the part of livelihood restoration program, skill development and income generation trainings for the project affected households were conducted. A total of 80 persons (two batches) from seriously project affected families and vulnerable groups had participated training courses on house wiring and carpentry from Jiri Technical School, in 2005. The participants, who successfully completed the training course, were also provided a set of tool box worth NRs 2,500. Similarly, 56 Life skill and income generation training with participation of 1200 persons had been provided under the Income Generation and Community Development Program (Social Uplift Program, SUP) as of 31 December 2018. Most of the participants of these training were seriously project families, vulnerable people, indigenous people and Dalit community. The training courses were related to handicraft, bee keeping, cooperative, metal fabrication, thanka weaving, seasonal /off-seasonal vegetable, house wiring, bamboo craft, homestay and tourist guide. Majority of the SPAPs and Vulnerable people, who have completed the basic course for carpentry and house wiring training are engaged in employment activities and have earned money from these activities.

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SMR January- June 2019

16. During the reporting period, no skill development training or vocational training were carried out.

4.4 Outstanding Issues

17. In area, about 300 meter irrigation canal has been damaged due to pipe laying. The MWSP personnel and Consultant has discussed with users group of the canal and assured them the irrigation canal will be rehabilitated in own land of MWSP after end of rainy season.

18. Likewise about 200 meter irrigation canal has also disturbed due to tunnel mucks of Sindhuadit. The MWSP/DSC team is conducting frequent discussion with usergroups to settle the issue.

19. Some land compensation related grievances which was recorded up to 31 December 2018, is yet to be solved.

20. There is only social safeguards staff (Resettlement Officer) in MWSDB, but she will retire in next month, after that there will be no social safeguards staff in MWSDB.

5. CORRECTIVE ACTIONS

21. The project will coordinate with different government organization such as district Survey Office, Land Revenue Office, to address the grievances of affected persons very quickly.

6. FOLLOW UP ACTIONS AND RECOMMENDATIONS

22. The MWSP has completed about 90 percent compensation payment and other resettlement activities. The project will undertake the following actions for the remaining RP implementation:

- Facilitate compensation payment to APs who are yet to collect compensation amount due to legal problem or other,

- Receiving and address the grievances of affected people with support of DSC and other line agencies

23. In MWSP, there is only a senior Resettlement Officer for working in social safeguards activities, who will be retired after a month. After her retirement, there will be no social safeguards personnel. Therefore, it is recommended to recruit one social safeguards personnel to look after resettlement and other social safeguards related activities and prepare reports as per requirements.

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