RESETTLEMENT FRAMEWORK, FULL RESETTLEMENT PLAN

Supplementary Appendix to the Report and Recommendation of the President to the Board of Directors

on the

SOUTHERN BASIC URBAN SERVICES PROJECT

in

PAKISTAN

Punjab/Local Government and Rural Development Department

This report was prepared by the Borrower and is not an ADB document.

December 2003

LAND ACQUISITION AND RESETTLEMENT PLAN

1. The Project aims to improve living conditions and quality of life of low income communities in 21 towns of 6 districts in Southern Punjab (see attached site map) where (i) safe drinking water is scarce or unsafe; (ii) sewerage system is inadequate or non-existent and wastewater treatment facilities are absent; and (iii) solid waste collection and disposal is insufficient. The population of majority of the towns ranged from 20,000 to 25,000. The Project will include the following sub-components: (i) sewage system improvement and sewage treatment; (ii) water supply; (iii) solid waste management; (iv) low-income area link roads; and (v) relocation of slaughterhouses. In each Project town, there will be one or two landfill sites for the orderly disposal of municipal solid waste and 1 to 3 wastewater treatment plants which are so far totally absent in all Project towns. The total land requirement for the planned infrastructure facilities, tenure of land, cost of private lands of different categories, number of houses and their average value and the total value of land and houses are shown in Table 1. Table 1 : Land Requirements and Acquisition Cost

rren

ment level for

Wastewater Treatment Plant Landfill Site Slaughterhouses Total Land Required Government Land Private Land Land under Annual Crops Land under orchards Replacement value of agricultural or ba land Replacement value of land under orchards Total replacement cost of private land Number of houses Compensation at replace houses Total Land Acquisition and Resettlement Cost

Rs million Rs Town Area in hectare (ha) Rs million per ha million Bahawalpur 262 36 - 298 - 298 298 - 0.5 - 147.20 5 5.00 152.20 Ahmadpur East - 6 - 6 - 6 6 - 0.7 - 4.80 - - 4.80 Hasilpur S - 5 - 5 5 - - - - - 0 - - 0.00 Khairpur Tam. S 14 2 - 15 15 - - - - - 0 - - 0.00 Yazman S 17 2 0.4 19 19 - - - - - 0 - - 0.00 Dera Ghazi Khan 98 15 - 113 - 113 113 - 0.1 - 13.90 4 4.00 17.90 Taunsa S 22 3 - 25 25 - - - - - 0 - - 0.00 Jahanian 13 2 - 14 2 13 8 5 1.0 1.7 16.0 1 1.00 17.00 Kabirwala 32 4 0.4 37 - 37 36 1 1.7 3.5 65.1 4 4.00 69.10 N 52 8 0.4 60 8 52 52 - - - 0 - - 0.00 Mian Channu S 32 4 0.4 37 37 - - - - - 0 - - 0.00 380 36 4.0 421 - 421 401 20 0.7 1.5 327.00 10 10.00 337.00 Jalalpur Pirw. S 20 2 - 23 23 - - - - - 0 - - 0.00 Qadirpur Ran 8 1 0.4 10 - 10 10 - 0.6 - 6.00 4 4.00 10.00 Shujabad 24 3 0.4 28 4 23 23 - 0.7 - 17.40 3 3.00 20.40 Alipur 14 2 - 15 - 15 15 - 0.6 - 9.50 - - 9.50 Jatoi 20 3 0.4 23 - 23 23 - 0.6 - 14.50 4 4.00 18.50 Kot Addu N 57 7 - 64 - 64 64 - - - 0 - - 0.00 Jampur N 30 4 0.4 34 - 34 34 - - - 0 - - 0.00 Rajanpur 35 4 - 39 5 34 34 - 0.5 - 16.6 - - 16.60 Rojhan 7 1 0.4 8 - 8 8 - 0.2 - 1.40 - - 1.40 Total 1136 150 8 1294 144 1150 1124 26 - - 639.4 35 35 674.4

S = All or some land requirement for the infrastructure can be met with state land identified by the TMAs. N = These TMAs are still selecting appropriate sites, and no final decision has been made yet.

A. Resettlement Framework 2. The Project area is fairly homogeneous in social and cultural terms. There is no vast difference in economic activities of the people in 21 Towns. In view of the similar socio- economic conditions, all 21 towns have been considered as one cluster and one resettlement plan has been prepared. 1. Scope of land acquisition and resettlement

3. Land will be acquired for construction of wastewater treatment plants, landfill sites, and the slaughterhouses. This includes 1,136 ha for wastewater treatment plants in 19 towns; 150 ha for landfill sites for solid waste management in 21 towns; 8 ha of land for slaughterhouses in 10 towns. The total land required is 1,294 ha (Table 2).

Table 2: Total Land Requirement for the Project

Project Components Number of TMAs Land Required (ha) Wastewater Treatment Plants 18 1,136 Landfill Sites 21 150 Slaughterhouses 10 8 Total Land Required 1,294

4. Site identification was done by all TMAs. Two TMAs (Multan and Kabirwala ) have indicated that they will conduct more surveys to identify alternative sites to minimise the loss of assets and resettlement needs.

5. Land will be purchased from landowners with their consent and willingness at the current open market prices. Based on the field surveys undertaken during the preparation of the Project, it was found that there will be no involuntary land acquisition and no involuntary resettlement.

6. As shown in Table 1, several TMAs do not own sufficient land to fulfil the Project requirements, therefore the TMA has to acquire the shortfall from the existing landowners.

7. The land acquisition will result in the loss of 1,124 ha of agricultural land and 26 ha of land with mango and orange orchards.

8. A total of 35 houses will be acquired and 257 persons will be displaced from homes in eight towns. Details of houses, number of APs and estimated value of houses are in Table 3.

9. Houses in rural areas are relatively large in size consisting four rooms. Two rooms are used of living and are usually made of baked bricks with roof consisting of wood beam and wood materials. Two rooms are used for animals; usually these rooms are made of mud and adobe with thatched roof material. The replacement value of various types of houses (masonary/semi masonary) ranges from Rs. 0.8 million to 1.2 million in the rural areas located in the vicinity of the Project towns. Therefore, an average replacement value of Rs. 1 million has been used.

Table 3: Number of Houses, Affected Persons due to Land Acquisition and Replacement Value of Houses Towns Number of Number of affected Estimated value of houses persons* houses in million Rs. Bahawalpur 5 35 5.0 Dera Ghazi Khan 4 30 4.0 Kabirwala 4 30 4.0 Jahanian 1 7 1.0 Multan 10 73 10.0 Qadirpur Ran 4 25 4.0 Shujabad 3 23 3.0 Jatoi 4 34 4.0 Total 35 257 35.0 * based on average household size for the concerned town.

10. Loss of livelihood is likely to be temporary and transient for landowners and for tenants and agricultural labour1. Landowners are expected to buy land or invest in other assets. Tenants and agricultural labour could be employed in construction works of the project.

11. Primary responsibility for land acquisition and resettlement lies within TMAs. TMAs will require assistance and support from the Local Government and Rural Development Department (LGRD, the executing agency – the EA ), Government of Punjab (GoPb) to acquire land and prepare and implement resettlement plan.

12. Under the National Resettlement Policy, the agency implementing the project will appoint a Resettlement Project Officer (RPO) who will work closely with the TMA and the Social Units of the Provincial EPA. The EA has appointed the RPO in the Project coordination office (PCO).

2. Socioeconomic Information

13. Land and houses will be purchased in the open market with the consent and willingness of their owners at the current market prices paid at the time of transaction. This has been agreed by the EA and the TMA.

14. A total 35 houses are located in lands identified by eight TMAs. The number of APs for these houses is estimated to be 257. The total number of landowners and tenants in land acquisition cannot be known without: (i) proper demarcation of land by TMAs, (ii) measurement of land by the land revenue department, (iii) preparation of list of landowners of the land acquisition by the land revenue department.

15. Preparation of list of landowners for designated land area requires consultation of different types of land revenue records (cadastral maps, records of rights, surveys of cultivation, etc., etc.). Land records may not be up to date with respect to size of landholdings of current landowners and inheritance. Some of these landholdings are not divided and some have been divided mutually by the heirs but these divisions are not registered in the records of rights. In

1 There are no affected persons who work solely as laborers. Where the term "laborers" is used, this in fact applies to tenant farmers who are earning ancillary income through laboring.

view of this, the final list of the affected land owners for land acquisition can only be prepared at the time of final design, and once all areas have been finalised and demarcated by the TMAs.

16. Landowners are willing to sell their land and houses at the current market prices. The landowners and homeowners will be paid for their assets at the current market prices. The likely impact of land acquisition is transition of assets for landowners and homeowners to a different location of their own choice.

17. There are only 35 houses in 8 towns that will need relocation. Once the full payment for their houses is made they can built or buy new houses in locality of their choice. No resettlement other than 35 houses will be required.

18. A small number of tenants and some agricultural labour may face temporary loss of livelihood due to land acquisition. There is no common property in the identified sites.

19. The project is designed to benefit poor population in low income areas of southern Punjab towns. The Project will not adversely affect the poor people and women as human settlements are away from the planned wastewater treatments plants (WWTPs) and landfill sites. There are no indigenous people and minorities in the areas around the selected sites.

3. Objectives, Policy Framework and Entitlements

20. The purpose of land acquisition is to construct 19 WWTPs and develop 21 land fill sites for solid waste management for the improvement of urban environment in the Project area.

21. Purpose of resettlement is to provide replacement for loss of assets, houses and livelihood due to land acquisition. In addition an income restoration program will be designed that will focus on affected persons that are particularly disadvantaged in terms of income generation and employment.

22. Government of legislated Project Implementation and Resettlement of Affected Persons Ordinance 2002. This ordinance is a comprehensive legislation that provides detailed procedures and definitions for land acquisition and resettlement of APs.

23. No involuntary resettlement is required as all land acquisition will be voluntary and on payment of value at replacement level. This has been reconfirmed during the field surveys undertaken during the preparation of the Project.

24. The EA will ensure compliance with all government legislation on: (i) land acquisition within the framework of 1894 Land Acquisition Act as amended up to 2003, (ii) Project Implementation and Resettlement of Affected Persons Ordinance 2002, (iii) Punjab Development of Cities Act of 1977, and (iv) Pakistan Environmental Protection Act of 1997.

25. Entitlement Matrix and eligibility policy is presented in Table 4.

4. Consultation and grievance redress participation

26. Project stakeholders include following: (i) Director General, Katchi Abadi and Urban Improvement (KAUI), LGRD (ii) TMAs, (iii) elected representatives including nazim and naib nazim of tehsil, and nazims, naib nazims and councillors of the concerned urban union councils, (iv) landowners whose land will be acquired voluntarily, (v) town population, (vi) civil works

contractors, (vii) civil society institutions, particularly, those to be associated in project implementation.

27. The main stakeholders in the project are urban union councils that represent the town population – the main beneficiaries of the project, and the land owners, tenants and dwellers. NGOs, local CBOs and urban union councils will work together to implement beneficiary participation for component sharing. The Chief Officer of the concerned TMA who is designated ex-officio project manager at tehsil level will ensure coordination between stakeholders in planning, management, monitoring and evaluation of the project activities.

28. Under the NRP 2002, a baseline survey is undertaken that confirms the details of land holdings and number of tenants, etc. The government sends summary containing project objectives, physical details of the area to be acquired to the revenue department and all stakeholders.

29. A meeting is held at each location where all owners, tenants, dwellers and project/TMA officials are present, in case of absence of any stakeholder or his representative, due time allowance is given to ensure that full consultation of all stakeholders has been achieved.

30. The land purchase price is agreed and income restoration program is explained to the respective stakeholders. Consensus of this is reached through the various dispute resolution mechanisms described below, the agreed price shall compensate for land cost and income loss to ensure that the sales do not affect the sellers living standards.

31. Upon agreement the land prices are frozen, and all land transactions are banned with the objective to control price escalation and muscling in by influentials at the expense of the original owners.

32. Additional field surveys are conducted to verify land records, liabilities, classifications, tenancy and cadastral maps are finalised.

33. An independent third party is involved during all land negotiations and verification of sales, payments of compensation and initiation of income restoration activities.

34. Voluntary land acquisition with complete willingness of landowners and homeowners who will receive compensation for their assets at replacement level at the time of transaction will not result in making them needy for help. The APs who will loose their livelihood (tenants and agriculture labour) will be provided jobs in project construction activities to mitigate the loss of livelihood.

35. Kinship is the most important institution in southern Punjab that provides help and support to kin relations in case of need.

36. NGOs will be involved in implementation of beneficiary participation for component sharing approach of the project. NGOs will provide advocacy and support to APs. CBOs currently working in the project towns may assist local population on self-help basis.

37. The Local Government Ordinance 2001 provides establishment of masalehati anjuman (reconciliation association) at union council level to resolve disputes and settle grievances. These bodies where established will provide redress of grievances.

38. In rural areas of southern Punjab, the most common system of dispute resolution and redress of grievances is known as punchayat. The punchayat consists of elders of the local area who are collectively accepted as mediators in most disputes including disputes of land. The punchayat needs to be endorsed by the district administration so that the government validates its decisions.

39. As per the Resettlement of Affected Persons Ordinance 2002, in case a dispute cannot be settled locally or in association with the Resettlement Project Officer, an additional formal grievance resolution mechanism is present in the form of the Grievance Resolution Committee headed by the Project Director.

5. Relocation of housing and settlement

40. The number of houses to be relocated is small. These are mostly houses of peasant proprietors (landowners who cultivate their own land and live on their farm) who will receive compensation at replacement level for all their assets acquired by the project. The largest number of houses is 10 at Multan and these 10 houses are located at longer distances from one another, on their farms. These are not contiguous houses or a community that needs to be resettled together. During consultation with landowners at Kabirwala, they have indicated that they will buy land at some other location and establish houses there. All land acquisition is voluntary and similarly relocation cannot be imposed on them. They will resettle at the place that is deemed convenient and beneficial to them. The TMAs will support APs who want to buy land by waiving mutation fees charged to the buyer of land by the government at the time of land transfer.

41. Resettlement is voluntary and cannot be imposed by offering alternate housing site or houses to APs against their will.

42. No new housing sites will be required as the number of houses at each town is small and people who receive payment will built houses at their convenience.

43. The district government will assist APs in transfer of land by waiving the land transfer tax.

44. Since the magnitude of relocation is very small, houses will be built or bought by individual heads of the households at their own convenience. Entire resettlement is voluntary.

45. Replacement value of agriculture land will be paid to offset the loss of land acquisition. Tenants/agricultural labourers may be preferred in hiring for project construction works to compensate the loss of livelihood.

46. As per NRP 2002, an income restoration programme will be designed which will focus on affected persons that are particularly disadvantaged and shall cater for their needs in terms of income and employment until they are rehabilitated, these would typically include landless individuals living below the poverty line.

47. Since the magnitude of relocation in each town is very small and people belong to same ethnic group and broader kinship group (biradari), no specify measures are required any integration with host communities. Similarly, considering that no new housing site is planned, no environmental risks are envisaged.

6. Income Restoration Strategy

48. This would include tenant farmers/labourers who may be displaced after the land owners sell the land to the Project. An income restoration program will focus on the affected persons. An income restoration program will be in place that will include:

§ Short term strategies to cater for the immediate needs of the tenant farmers/labourers, this would include sustenance income;

§ Longer term strategy for income restoration including financial assistance in leasing of replacement land and acquisition of necessary financial and social capital to lead a sustainable livelihood.

49. Most APs are landowners who will buy land for livelihood or make any other investment. Tenants and labourers shall be preferred for employment in construction works of the project during the project construction period. For tenant farmers/labourers a financial compensation mechanism will be developed that will facilitate acquiring an equivalent land on lease including setting up costs that will ensure sustained replacement of any income lost due to land acquisition in the Project.

7. Institutional Framework, and Monitoring and Evaluation

50. The EA will be responsible for the execution of the project resettlement activities. The EA will work in close coordination with the concerned District Governments through their Land Acquisition Collectors (LACs), and the selected NGOs for the day-to-day activities of the RP implementation. The EA and the NGOs will execute and monitor progress of the work and ensure coordination between the relevant departments, Grievance Committee and the PAPs. A panel of experts will be engaged by the EA to independently evaluate the RP implementation. Independent evaluations will be undertaken on 6-monthly basis during the Project implementation period.

8. Resettlement Budget and Financing

51. An amount of $15.988 million equivalent in local currency cost is estimated for the overall land acquisition and resettlement which will be financed by the Government of Punjab and the TMAs. The EA will assure prompt provision and smooth flow of the budgeted funds in an efficient and timely manner. No land acquisition will be effected without completing compensation and rehabilitation.

9. Implementation Schedule

52. The process of land acquisition and resettlement is planned to compete within first 18 months starting from the loan signing date.

53. According to law for land transfer, the mutation of title is effective only when payment is made either in the presence of a tehsil land revenue officer, tehsildar. or when witnesses appear in court of tehsildar and testify that payment for land was made in their presence. Demolition will only take place after the land is acquired and transferred to TMA.

Table No. 4: ENTITELMENT MATRIX

Type of Loss Entitlement unit Description of entitlement and implementation Remarks procedures 1. Agricultural, Residential, and other related lands 1.1 Loss of Private · Land owner · Affected Persons (APs) will get compensation at · The owners include all household Land full replacement cost. members in whose name land · Occupancy tenant · APs will have the option to relinquish the titles is registered in record of (sharecropping remainder of that parcel or landholding if they rights maintained by land tenant registered in feel that remaining portion of land after revenue department. the records of rights – acquisition is too small to be viable for · Occupancy tenant shall share the jamabandi) cultivation or other use. APs who choose to compensation with landowner for relinquish the whole parcel of landholding will land as per his rights registered be entitled cash compensation at replacement in the records of rights. cost for the entire parcel of landholding. · If new land is purchased by APs · Rehabilitation cost, where applicable, shall be government shall waive Mutation given to APs according to mutually agreed Fee levied on buyer of land. formula. · Compensation should preferably · Tenant will get compensation equivalent to his be made through cheque. crop share if the land is acquired before harvest · The Grievances committee shall of standing crops cultivated by that tenant. comprise representatives of APs · Squatters, if any, will be compensated and and shall be endorsed by TMA rehabilitated. and district administration.

1.2 Loss of lease · Leaseholder · Prior notice shall be given to harvest crops. · Leaseholder shall pay one holder’s contract possessing legal · Leaseholder will be paid amount equal to the month’s salary to his employees agreement for lease annual land rent if land is acquired before working on the leased land under of specific land for a completion of one year of his contract. land acquisition. specified period. · If land is acquired after completion of the first contract year and the remaining lease period in agreement is longer than a year then the leaseholder shall be paid 50% of the value of annual rent as compensation for termination of contract.

1.3 Loss of livelihood · Sharecropping · This category is not entitled for land · Sharecropping tenant at will and tenant -at-will compensation but are allowed to be agricultural labor where possible, (temporary tenant compensated for particular crop and other will be preferred for employment without legal security associated benefits accruing in that cropping in civil works under the project on

of tenure) season according to market rates, income priority basis. restoration program for the particularly · Agricultural labor disadvantages. employed on regular basis and not on daily · Sharecropping tenant-at -will will get wages. compensation equivalent to his crop share if the land is acquired before harvest of standing crops cultivated by that tenant.

1.4 Temporary Loss of · As specified in 1.1 · Temporary loss of land due to construction · This will be agreed between the Private Land and 1.2 activities will be paid as land rent for the TMA/EA and the affected duration of disturbance. persons.

· For the disturbed agricultural land value of produce for that cropping season (s) will be paid.

· Any structures demolished or damaged (e.g. watercourses, embankments, etc.) will be restored to their original condition.

· The land will be returned to owners in actual form, leveled to the best possible original condition.

1.4 Restricted/ partial · Owners/users · Compensation for crops, including any · Land rent in lieu of crop value use of land for infrastructure such as watercourse, path etc. can be paid to owners, after passage of pipeline shall be paid to owners. mutual agreement. etc. · Land will be returned to owner/user after restoring it to the closest possible original condition. 2. Crops and Trees 2.1 Loss of trees and · Owner / · Prior notice will be given for harvest of crops. · The agreement for land perennial crops Sharecropping tenant acquisition with every landowner / Leaseholder · Market value of produce will be paid where land shall specifically mention about is acquired before harvest of crops. compensation for trees and logging. · Compensation of fruit trees and other trees for .

timber will be negotiated in the agreement for sale of land. 2.2 Loss of non- · Owner / · Advance notice to harvest crops will be given. · Prices for compensation of perennial crops Sharecropping tenant standing will be valued at current / Leaseholder · Net value of produce will be paid if land is market price. acquired prior to harvest of crops. · The compensation is shared between owner and sharecropping tenant or leaseholder according to their mutual agreement of crop share or land rent.

3. Houses and other Structures 3.1 Loss of owned · Home owner · Compensation for house will include price of · The cost for houses shall include house and other land, construction materials, including boundary the cost of material as agreed by structures · Shop owner wall, assets like trees, hand pumps, etc. the homeowners.

· Sharecropping · Sharecropping tenant shall also Tenant only for the be paid for the shelter he has shelter made by made for himself. himself 3.2 Loss of · Owner · Compensation at replacement level shall be · This cost will be determined by Commercial · Tenant paid for loss of all structures. masalehati anjuman and/or local structures/activities · Leaseholder reconciliation committee · Compensation will also include allowance for (punchayat) as agreed by the business displacement and relocation. APs.

4. Damages caused During Construction/Work 4.1 Private and public · Institution · During project activities extra care will be taken · Compensation for restoration of sector building. Assets · Title holder to prevent any adverse effect whether damages is determined with etc. · Owners temporary or permanent. mutual agreement of the institution/owners/users · Where it is unavoidable due to nature of concerned and the project. activities then affected persons, institutions, agencies, owners/users will be compensated accordingly so that the original conditions could be restored with this cost 5. Community Facilities and Resources

5.1 Loss of common Local community · Restoration of actual sites and structures in the · These includes schools, structures/establishme best possible manner footpaths, irrigation channels, nts drinking water facilities, ponds etc. 6. Displacement Allowances/Measures 6.1 Houses Owner/user · Usually property is acquired at an advance · Compensation is paid before Title holder notice and after negotiations of minor details. displacement Tenant The land acquisition agreement will take into account any displacement allowance where applicable and the cost will be included in the total price of acquired assets.

7. Group Losses 7.1 Loss of income · Person who may be Rehabilitation assistance as defined in section 8 Losses actually affected by the due to project adversely affected by below. project will be identified and the project although assessed in consultation with APs they do not loose and grievance committee.. assets 8. Rehabilitation Measures Losses directly due to All affected persons Consultation regarding project impacts will be done Project implementation unit will the project and severe by the implementing agencies at local level to determine the cost and implement impact indirectly determine rehabilitation measures. rehabilitation measures at local level. caused by the project 9. General Counseling All Project Community and project Community consultation on project design, Beneficiary participation and Impacts/effects beneficiaries in the environmental impacts, construction schedule, land involvement of civil society project area acquisition, local initiative and beneficiary institutions will be ensured by the participation will be done at local level. executing agency.

Note: Only important and applicable points are discussed in this matrix. The adverse effects of SPBUSP are least on people’s life and livelihood as compared to the scale of the project. The most important aspect is that there is not a single case of involuntary resettlement. Owners are willing to sell land and TMAs shall ensure compliance with the ADB guidelines on resettlement. The local government institutions (tehsil council and union councils) are actively involved in the project and they will safeguard the interests of affected persons. Project as such is not causing any extra ordinary resettlement.