43141-044: Civil Aviation Development Investment Program

Resettlement Plans

Project Number: 43141-044 June 2016

PNG: Multitranche Financing Facility - Civil Aviation Development Investment Program (Tranche 3)

Prepared by National Airports Corporation for the Asian Development Bank.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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

A. Resettlement Plans

1. Buka Airport Resettlement Plan 2. Gurney Airpoprt Resettlement Plan 3. Kavieng Airport Resettlement Plan

A. Social Safeguards

1. Buka Airport Resettlement Plan.

I. EXECUTIVE SUMMARY

1. The proposed Buka Runway Extension Pavement Upgrading & Associated Works (the project) aims to (i) improve of this major domestic airport to bring the facilities to a level of development that fully meets airport national and international safety standards and requirements, and (ii) provide the runway, taxiway, apron and terminal building capability to accept unrestricted operations by Fokker 100 aircrafts and passenger movements. The project will be implemented around April-May 2017 and will be completed on June 2018.

2. The generic scope of works includes strengthening of the existing pavements (runway, taxiways and aprons); extension of the main runway by 350m (including 30m stop way & 90m rescue end safety area) on southwest end to give 1900 long x 30m wide sufficient for Fokker100 or equivalent aircraft operations; construction of new terminal building, car park and power house; Construction of New Airport Market with Security Fence and Gates with Water Tanks and Public Toilet; drainage works; and power reticulation for improved infrastructures. The project described in this Resettlement Plan (RP) will not require displacement of people and structures. However, it will need to acquire 137,611.30 sq.m of land area outside the aerodrome land.

3. Estimated population of Buka is around 70,000 of which around 2000 people live around the precinct of the airport community. The ethnical composition of the people is mostly Ieta and settlers from other places in Bougainville. These Ieta people are more organized and very vocal in terms of land rights and ownership through matrilineal practice. The project is situated within the Ieta Community of Buka Urban Local Level Government (ULLG).

4. A nearby settlement about 10 meters outside of the aerodrome boundary is populated by displaced people from the Bougainville copper limited crises in 1994. The increase in their population over the years has imposed pressure to the availability of land. Their current population is about 1000 scattered across within the nearby coconut plantation. Almost all families within the settlement and Ieta community rely on subsistence farming, copra harvesting, and sales, and fishing for their household income and livelihood. These are supported by informal marketing, cash or kind contribution from relatives, and formal job employment in Buka town.

5. The acquisition of the customary land is not expected to significantly affect the livelihoods or household income of the affected persons (APs). Most of the land area to be acquired is basically swamp and not fertile for cultivation or suitable for building houses. Only patches of food gardens like bananas, aibika, taro, and pumpkin tips, mangrove and some other tree plants covers an area of about 2,500sq.m from one of the current runway that will be extended are to be affected. Accessibility to and from town and also to fishing grounds will not be affected. Construction of the airport fence around the proposed acquisition area will create a pathway on the fence embankment which can still be used by the APs to have access to their gardens, houses and fishing grounds. In addition to the compensation that will be paid to acquire the land required for the project, APs (men and women) will benefit from the project through (i) employment opportunity, (ii) engaging as land owning groups, (iii) provision of water tanks or bore installation by the project.

6. Consultation with APs is done in coordination with the Provincial Government of the Autonomous Region of Bougainville (ARB). Both the APs and the Provincial Government of ARB have indicated and maintain their support for the project. The main concern of the affected persons is to participate as subcontractors to the main contactors. 7. The table 1 below summarises the eligibility for entitlements for the APs for the project. The entitlement matrix as per ADB Policy is attached in Annex 1.

Table 1. Entitlement Matrix Type of Impact Entitled Person (s) Entitlements Permanent Legal owner(s), including Landowners will be provided equivalent acquisition of land. customary landowners size and quality of land, or cash compensation at replacement cost. Informal settlers (e.g. on APs will be provided compensation only land acquired as part of for their damaged crops, trees, and ROW) with no localizable structures on project-affected land rights Loss of crops, Customary land owners APs will be given notice to harvest crops tress, structures and leaseholders if lease and trees before site clearance or and assets. not expired prior to removal from required land. If APs are commencement of land not able to harvest, they will be paid clearance. cash compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for a period until new crops or trees produce an equivalent income. Unforeseen or Concerned displaced These will be determined as per the unintended persons principles of this RP and ADB’s impacts Safeguard Policy.

8. NAC will allocate adequate resources to implement and monitor the RP by ensuring that (i) full compensation payment is made for the affected land and improvements (crops and gardens) and (ii) civil works shall not commence until approval for this RP is granted by ADB and NAC.

II. PROJECT DESCRIPTION

1. Buka Airport serves Buka Island in the AROB. It is located at the southern end of the island, near Buka Passage behind the town of Buka, and pre-war Chinatown. The airport terminal is about 1.5 kilometers from the Buka Township. It is the only airport serviced by a regular passenger transport service in the North Solomon Province.

2. Buka airport is located on a relatively flat island some 52 km long in the north south axis and up to 18 km wide in the west east axis. It is separated from Bougainville by the Buka passage a narrow deep and very fast flowing tidal channel about 200 meters wide. The east coast is the windward side for most of the year and is characterized by a coastal cliff that rises close to the ocean leaving only a narrow and often rocky beach. A coral reef rings the entire island and is narrow on the east coast which is battered by oceanic winds and large waves and spreads out into the lagoons on the west coast.

3. The western coast of Buka is covered by the Richard Parkinson Range consisting of low mountains. The ranges start at the back of Buka town at the village of Ieta and Peta near Carola Harbour.

4. The airport runway is 1566 meters long by 30m wide with asphalt surface. It is 11feet/3m above sea level surrounded by grass cover on all unpaved surfaces in the airfield. There is one navigational aid, the Buka NDB situated on nearby Sohano Island. The airport caters for Fokker 100 aircraft. Other smaller aircrafts also operate in and out infrequently.

5. Land adjoining the airport is almost entirely coconut-cocoa plantation to the north of the runway outside of the aerodrome land, permanent houses along the outside the aerodrome boundary line accept for one or two houses that appears to be on the proposed fence line to the south of the runway. The Department of Works & Supply is adjacent to the terminal separated by an old World War 2 aircraft hangar. The main highway is setback about 10 meters outside the aerodrome boundary turning along the sea front about 200m away from one opposite end of the runway. The other end is 20 meters in from a well vegetated mangrove swamp.

6. The geology is calcareous limestone. There are a handful of scattered bush material and semi-permanent houses along the aerodrome boundary to the north. The local population is unevenly scattered with both the locals and settlers surrounding the airport. The airport is not fenced and trespass has become a common issue. High security personnel from the local population are guarding around the airside to ensure no person and animals cross and that the runway is clear and free for the aircrafts to approach and take off safely.

7. The Autonomous Region of Bougainville is in the tropics. Temperature ranges from 26-28 degree Celsius. Rainfall varies due to topography. South Bougainville receives around 4500mm of rain annually. This decreases further north where Buka has an annual rainfall of 2500mm. The airport receives about 260mm average monthly rainfall.

A. Proposed Upgrade Works

8. The proposed airport redevelopment is designed to bring the facility to a level of development to fully meet international and regional airport safety standards. The upgrading of Buka Airport is to facilitate a safety-compliant regional international airport suitable for F100 aircraft operations or equivalent, such as Q400 or ATR. It will also act as a major domestic hub for the Province.

9. Major upgrading works will be on the airside portion of the facility and minor works on the landside. Most of the works will be within the existing aerodrome land boundary except for the runway extension that will go beyond aerodrome boundary into an undeveloped area.

B. Measures to Minimize and Mitigate Land Acquisition

10. CADIP has adopted various measures in order to minimize and mitigate the need to acquire additional land and the impacts this can have on the communities within the vicinity of the airport. It will ensure that the Buka Airport civil works conforms to the following:

(i) The engineering design has minimized the need to have additional land to meet basic engineering safety requirements. (ii) All airport pavements strengthening and associated works will be done as much as possible, within the current airport boundary. (iii) Upgrading of the market is done within the NAC state owned land. (iv) Liaise with the Autonomous Bougainville Government (ABG) to address land acquisition matters (if applicable) in timely manner.

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Land Acquisition

11. The current runway length and strength is not sufficient to allow Fokker 100 or similar aircrafts to operate full load at maximum takeoff weight. Hence, the runway has to extend and pavements (runway, taxiway, and apron) strengthened to accommodate that. In addition, the runway has deteriorated over the years and requires urgent replacement. The deteriorating condition of the current terminal building together with increasing number of travelling passengers and cargoes into the airport and terminal requires for a construction of a new terminal building with increasing floor space.

12. The total land area to be acquired to cater for the project is 137, 611.30 sq.m of customary land owned by the Ieta people of Buka (see Figure 1) valued at K6,518,384.75. It will not displace any persons nor any structures or significantly affect the livelihood of the landowners. It is only the planted crops and gardens at the end of the current runway. The practical mitigation measure adopted by the project to avoid resettlement was to apply an engineering design to realign the proposed fence line.

FIGURE 1: LAYOUT PLAN OF BUKA AIRPORT WITH THE PROJECT LAYOUT PLANS SHOWING THE LAND AREA TO BE ACQUIRED.

B. Affected Assets

13. No household or common user facilities will be affected. Recently, squandering of settlers permanent structures around the perimeter of the airport is slightly encroaching into the aerodrome land in some sections of the boundary. Installation of the new airport fence under the project will require fencing out of these structures from aerodrome land to avoid grievances and resettlement.

14. The identified crops will be compensated based on Land Investigation and Valuer General’s reports from the Department of Lands & Physical Planning (DLPP). The Valuer General’s Schedule of payment for food crops and economic trees will be applied and adjusted based on the current market prices at the time of payment. The affected crops and food gardens valued is listed in Table 2 below.

Table 2. Affected Crops and Trees Quantity Stage of growth Type of plant/crop Unit price Total Value (No.) (PNGK) (PNGK) 20 Matured Bananan (Kalapua) 10.50 210.00 30 Small Bananan (Kalapua) 5.50 165 .00 60 Large mound Sweet potatoes 10.50 630.00 (>1.5m diameter) (Kaukau) 15 Matured Singapore Taro 5.25 78.75 10 Medium Singapore Taro 2.60 26.00 10 Small Singapore Taro .50 5.00 15 Matured Pumpkin (vine) 2.60 39.00 15 Medium Pumpkin (vine) 1.30 19.50 30 Matured Aibika 2.60 78.00 15 Medium Aibika 1.30 19.50 10 Small Aibika .65 6.50 10 Mature Pawpaw 3.30 33.00 10 Medium Pawpaw 1.30 13.00 5 Matured Banana clumps 26.00 52.00 5 Matures Mustard (Dakar) 4.00 20.00 5 Matured Betel nut 26.00 130.00 5 Matured Guava 10.00 50.00 10 Matured All other trees 4.00 40.00 TOTAL 1,615 .25

15. The crops and trees are owned by 5 households (16 persons) reported by the AROB Government as mostly settlers (Table 3). Table 3. Affected Households Losing Crops and Trees No. Names of APs Household heads Male Female Widow/er Total 1 Mrs. Muriel 2 2 0 4 2 Olsin Joe 2 4 0 6 3 Alvina 1 1 0 2 4 Ethel 1 1 0 2 5 Kuhil 1 1 0 2 Total 7 9 0 16

C. Number of APs

16. The total number of affected persons who are the landowners of the lands to be acquired will be determined during the land investigation by DLPP in coordination with the ARB Government. This will be carried out on May 2016.

IV. SOCIOECONOMIC INFORMATION AND PROFILE.

A. Demographic features of affected people

17. Bougainville has a population of 175,160 with a population density of 18 -19 persons per square kilometers. Life expectancy is in PNG is 57 years and the adult literacy rate is approximately 65 % (2001 figures). The prediction of a doubling of the population with potential extension of life expectancy will greatly increase the pressure on current land and natural resources with attendant environmental impacts.

18. Majority of the population is indigenous. Villages are scattered throughout most of the area, but much of the mountainous interior is un-habited. Majority of the inland villages are situated on tops of ridges. The provincial economy is largely a subsistence economy but is generally supplemented by cash crop farming such as coconut and copra.

19. Today the overwhelming majority of Buka are Christians, divided into a Roman Catholic majority and a large minority of United Church (Methodist), as well as many different Pentecostal and Evangelical sects.

20. The main island of Buka is occupied by two distinct language groups, Solos and Halia. The latter is split into two dialects in Buka Island: Hanahan- Halia spoken along the east coast from Buka Passage (known locally as Ieta – airport surrounding communities) to Tohatsi and Haku, spoken in the north coast villages.

21. Chiefly system is still practiced in Buka for both male and female. The society is matrilineal with female becoming the next of kin in family properties, belongings and land. However, chieftainship is inherited positions of authority for men. Traditionally, women chiefs have little overt authority, although they are extremely well respected. Women have a sacred value, rather than secular power. This is changing somewhat under the influence of Non- Government Organizations (NGOs) for empowering women.

22. Most often cultural difference and language diversity often possess a challenge in interpretation, understanding and communication of information, mobilizing community support for local participation in infrastructural development such as the airport upgrade.

B. Impacts of land Acquisition

23. Land areas around the airport are owned by one major customary land group called Ieta. Their land area required for the project is about 13.76 Ha which is considered small compared to their vast land ownership in Buka. Most of the land area to be acquired is basically swamp and not fertile for cultivation or suitable for building houses so it is not expected to significantly affect the livelihoods or household income of the affected persons. Only patches of food gardens like bananas, aibika, taro, and pumpkin tips, mangrove and

some other tree plants covers an area of about 2,500sq.m from one of the current runway that will be extended will be affected. The main issue is to ensure that the Ieta landowner group remains supportive to the project and will allow fair distribution of compensation payments to all members, including females. The Safeguard Officer of PIU will ensure that continuous consultation is done prior to and during the implementation of this RP.

24. There are no sites of cultural significance or household structures found near the area of the proposed development. There is a settlement and local houses situated outside of the airport boundary but this will not be affected. Only the gardens, trees and food crops belonging to the 5 affected households will be removed.

25. The APs household income is very much dependent on subsistence farming, informal marketing and fishing. To sustain their household income, they also receive rent/lease from their land outside of the aerodrome through business deals with individuals or organizations. Some also earn income through formal work and also by working on the coconut farm producing copra. Cultural practice of family relationship often adds to their income by way of cash or in-kind support from relatives and family members.

26. The presence of poor and vulnerable groups among the clan landowners will be identified during land investigation.

V. CONSULTATION, DISCLOSURE AND GRIEVANCE REDRESS

27. This section outlines CADIP procedures for stakeholder consultations and grievance redress. Community consultations and focus groups discussion meetings were conducted in several communities on each of the Project 3 airport. During preparation of the CADIP, consultations were held in the Buka airport vicinity, with communities and provincial level government authorities.

28. Altogether, there were about four consultative meetings between NAC and AROB Government from 2013 to 2015. Project awareness has continued through the local National Broadcasting media of Buka and also by the relevant officers from the Provincial Government. One open group discussion was done with the Ieta Customary landowners around June 2014 and one with the settlers and the block owners around the airport perimeter on November 2015 for the Periodic Financial Request (PFR) safeguard assessment. The ARB Government maintains strong support for the project to boost socio-economic development in the region. The APs raised the following concerns: (i) priority on local participation; (ii) consideration for subcontracting with the main contractor; (iii) full payment of the compensation for the land and its improvements to be acquired prior to construction; and (iv) including one of the landowner representative as part of the project GRM committee member. These will be taken into account by the project.

A. Consultations with Affected Communities

29. Another consultation is planned to commence in the second quarter of 2016 between NAC, AROB Government and APs. This is to prepare a Memorandum of Understanding (MOU) for the acquisition of the land including the formalities for land alienation works that will be undertaken by DLPP for land investigation, clan members’ identification, boundary survey, instruments for acquisition application/processes and the eventual submission to the GoPNG for financing the land to be acquired. General support for the project is indicated by the settlers and block owners surrounding the airport.

30. Their main concern as raised above needs on-going consultation and participation mechanism which must be agreed by all before any civil works will commence to avoid future delay during project implementation. a. Disclosure

31. APs and AROB Government were advised of the project plans and its importance to the socioeconomic development of the region. They were also informed of the ADBs and GoPNG requirements, policies, procedures and entitlements of the RP. The RP will be made available to the APs and the AROB Government prior to submission and approval by NAC and ADB. This RP will be finalized in consultation with APs and AROB and following the detailed engineering design and land investigation. The RP will be made available in English, the official government language in Papua New Guinea, in a readily accessible location within the airport area. A summary brochure for the RP will also be prepared in Tok Pisin for distribution in the airport area. This draft RP and any updates will be disclosed on the ADB website.

32. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to APs and communities regarding the requirements for land acquisition, as well as the policies and procedures of the CADIP. b. Grievance Redress

33. NAC has established a grievance redress mechanism to receive and address project related concerns and to resolve land related disputes that may arise during project implementation, as shown in Figure 2. Affected People will be informed by NAC how they can have access to the grievance redress mechanism. Other than disputes relating to land ownership rights under the court of law, most grievances related to resettlement benefits, relocation, and other assistance are expected to be resolved at the PIU level.

34. Affected People can first lodge a project-related complaint with the ward councilor and resolve at the village level. If it cannot be resolved, then it goes to PIU office at the project site. The PIU project manager will consider the complaint and within one week will convey a decision to the APs. The safeguard officer from PIU of CADIP as well as local government officials will assist the project manager in reviewing and addressing the complaint. The safeguard team will also facilitate communication between APs and the PIU in this process. If the APs are not satisfied with the PIU’s decision, they may then take the grievance to the CEO of NAC. The CEO has two weeks to consider the complaint and following this (s) he will either instruct the PIU to rectify the situation or dismiss the complaint. Should APs be not satisfied with the decision of the CEO; they may take the grievance to the PNG judicial system.

35. The Land Disputes Settlement Act (2000) establishes legal procedures for resolution of landownership disputes on customary land. It has a mediation process whereby a designated 14 mediator meets with the disputing parties to resolve grievances. This process is closely allied with the village court system and traditional mediation procedures that draw on the skills of recognized local leaders and elders. The landowner clans or ILGs, if clans are incorporated, are responsible for dealing with disputes between group members or between the clan group and a member, including disputes over entitlement to group membership. External mediators will facilitate resolution in case disputes are between different clans or ILGs.

36. An initial step will be for the PIU in coordination with DLO to facilitate procedures to resolve land disputes based on a process of mediation. As required, the participation of appointed and traditional leaders will be encouraged to achieve satisfactory resolution of issues at the local level. If that fails, procedures as set out in the Land Disputes Settlement Act (2000) will be followed.

37. The Act promotes a process for resolution of land disputes through (i) mediation, followed by (ii) appeal to the designated courts. The mediation process is based on the principles of traditional dispute settlement. The steps in the dispute resolution process include:

(i) Local Land Mediation: The District Land Officer (DLO) brings together the disputing parties with the mediator. If this fails, the matter can be referred to the Local Land Court. (ii) Local Land Court: The case is heard before the Local Court Magistrate for determination. If the litigants are not successful, they may appeal to a higher court. (iii) District Land Court: The case is heard before a District Land Court Magistrate. If the litigants are not successful, they may appear to a higher court. (iv) Provincial Land Court: The case is heard before the Provincial Land Court whose decision is final.

38. In the event of grievances that cannot be resolved through mediation, the DPE/NAC and DLO will hold the compensation amounts in escrow. Compensation will be paid in full upon final resolution of the case in the courts or other forum, in accordance with the entitlements of the affected person.

FIGURE 2: GRIEVANCE REDRESS MECHANISM

VI. LEGAL FRAMEWORK

A. National and Local Laws and ADB Policy Requirements

39. The policy framework and resettlement entitlements are based on the laws and regulations of the GoPNG and the ADB’s safeguard policy. The principal PNG laws include: (i) the 1996 Land Act; and, (ii) the 2000 Land Disputes Settlement Act. Relevant ADB policies include the 2009 Safeguard Policy Statement and Gender and Development Policy and Public Communication Policy 2011.

40. GoPNG does not have any specific policies at the national, provincial or local level for relocating and resettling people. GoPNG has policies related to the acquisition of land and assets by the State for public purposes on an agreement basis or compulsory acquisition basis. This together with customary lands and related legal procedures, compensation payable, and the legally defined procedures for receiving and facilitating the resolution of affected persons’ concerns and grievances are all incorporated in the Land Act of 1996.

41. The Act covers customary land rights, which includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary right holders”; these persons are using the leaders of the group who collectively have the authority to allocate use rights through their spokesperson. The other members of these groups or clans typically possesses “secondary rights” because their rights to the land may have been inherited from a primary rights holder through marriage, that is they are either married to a primary right holder or as a child or an adopted child of the primary rights holder.

42. In most cases, both ADB and GoPNG Policies on Involuntary Resettlement are similar except in relation to compensation paid to non-titled settlers or squatters. While ADB will compensate non-titled affected persons, the GoPNG does not recognize non-titled holders as being legitimate affected persons. Table 4 presents comparison of gap analysis for the two policies.

Table 4. Policy Gap Analysis

ADB SPS Principles on Land Measures to Compliance with ADB SPS Acquisition/Resettlement

 Screen the Project early on to identify past,  NAC has devoted considerable resources, present, and future involuntary resettlement including the mobilization of its Safeguard impacts and risks. Officer who regularly travels out to Buka for consultation. He will be intermittently assisted by the ADB Safeguard Specialist (consultant).  Carry out meaningful consultations with  This RP addresses this policy principle. affected persons, host communities, and Several rounds of consultations have been concerned non-governmental organizations. facilitated with APs. Their ideas on Project Inform all displaced persons of their design, especially to minimize the loss of

entitlements and resettlement options. Ensure productive assets have been taken into serious their participation in planning, implementation, consideration by NAC. Planted improvements and monitoring and evaluation of resettlement inside the land area to be acquired will be programs. Pay particular attention to the needs compensated at replacement cost. A grievance of vulnerable groups, especially those below redress mechanism has been prepared by the poverty line, the landless, elderly, women NAC and incorporated in this RP to ensure APs and children, and Indigenous Peoples, and can seek effective redress. those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns.  Improve or at least restore, the livelihoods of all  The main issue here related to the prompt displaced persons through (i) land-based payment of compensation costs as per the LIR resettlement strategies when affected using the existing market prices. NAC has livelihoods are land-based where possible or worked very closely with APs and ARB cash compensation at replacement value for Government to ensure the process has been land when the loss of land does not undermine transparent and fair to all APs. livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation at full replacement cost for assets that cannot be restored; and, (iv) additional revenues and services through benefit sharing schemes where possible.  Provide physically and displaced persons with  Only crops, gardens and trees for the 5 APs needed assistance, including the following: (i) will be affected. Lands to be acquired will be secure land use tenure on land identified for compensated. new garden sites and (ii) if necessary transitional support and development assistance such as land development, credit facilities, training, or employment opportunities.  Improve the standards of living of the displaced  This is not an issue for this Project. There is no poor and other vulnerable groups, including physical and economic displacement. Loss of women, to at least national minimum standards land and asset is minimal and adequately and provide access to land and other compensated. resources that is both legal and affordable.  Develop procedures in a transparent,  There are no negotiated settlements just consistent, and equitable manner if land consultations. acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.  Ensure that displaced persons without titles to  APs in the land area to be acquired have the land or any recognizable legal rights to land are customary ownership rights to this land. eligible for resettlement assistance and GoPNG through NAC will compensate them for compensation of loss of non-land assets. the unimproved value of the land including loss of trees, vegetation and crops of economic value and household structures.  Prepare a draft resettlement plan and disclose  This has been complied with by NAC as per a resettlement plan elaborating on displaced this RP. persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. This has been

complied with as per this Draft RP.  Pay compensation and provide other  This will be complied with by NAC as per this resettlement entitlements before physical or RP economic displacement and implement the resettlement plan under close supervision throughout project implementation.  Monitor and assess resettlement outcomes,  Relevant outcomes as per the RP will be their impacts on the standards of living of monitored by NAC and APs have the right to displaced persons, and whether the objectives mobilize independent monitors to be paid by of the resettlement plan have been achieved by NAC if there are major disputes vis-à-vis land taking into account the baseline conditions and acquisition process outcomes. the results of resettlement monitoring and disclose these monitoring results.

43. The ADB’s 2009 SPS also states that where there are indigenous peoples their identity, dignity, human rights, livelihood systems, and cultural uniqueness must be safeguarded so they can receive culturally appropriate social and economic benefits. In the project area, all APs whether they are customary land owners or settlers are not distinct groups in of PNG even though the settlers have originated from other regions of PNG.

44. The other policy of relevance to this Project is the ADB’s 2003 Policy on Gender and Development, which requires that all ADB financed projects ensure where possible and practicable special design features and strategies be built into projects to facilitate and encourage women’s involvement and ensure tangible benefits for women.

45. There are some gaps between GoPNG policies and procedures and those of the ADB. The main gaps relate to (i) carrying out meaningful consultations that also ensure people living below the poverty line, the landless, elderly, women and children are consulted; (ii) requirement to improve or at least restore livelihoods of all displaced persons by ensuring the full replacement costs for assets lost is paid; (iii) provision of economically displaced persons with necessary assistance to improve upon or restore their existing livelihoods at least to national minimum standards of living; (iv) ensuring that displaced persons without recognizable rights to land are eligible for compensation for loss of non-land assets; and, (v) monitoring and assessment of resettlement outcomes. Table 5 below shows the gap filling measures in comparison for the two policies.

Table 5. Policy Gap Filling Measures

ADB SPS Requirements PNG Laws on Equivalence Gap-filling Measures on Involuntary or Gaps Resettlement RP between ADB SPS and PNG Laws

Avoid involuntary The National Constitution No explicit The RP includes measures resettlement wherever (NC) National Goal 5(4) reference to the on avoiding/minimizing land possible. Minimize calls for ‘traditional villages need for acquisition. involuntary resettlement by and communities to avoidance or exploring project and remain as viable units of minimizing Papua New Guinean resettlement

design alternatives. society’. Section 53 impacts. protects citizens from ‘unjust deprivation of property’ by limiting the justification for compulsory acquisition by the State.

Enhance, or at least General principles of PNG Laws do The RP include measures on restore, the livelihoods of all compensation for damage not prescribe compensation at replacement displaced persons in real or destruction of physical measures of cost for affected assets and terms relative to pre-project and economic assets are replacement to restore/improve living levels. Improve the set out in NC s.53, Land cost or standard of APs. standards of living of the Act (LA) s.23. restore/improve displaced poor and other standard of vulnerable groups. living.

Screen the project early on RP sets out the process No specific The RP includes measures to identify past, present, for Land Investigation requirements on survey/census, cut-off- and future involuntary Report which includes for census, cut- date, assessment of impacts resettlement impacts and identification of affected off date, impact and resettlement planning. risks. Determine the scope clans/tribes and their assessment of resettlement planning assets. and through a survey and/or resettlement census of displaced planning. persons, including a gender analysis, specifically related to resettlement impacts and risks.

Carry out meaningful NC National Goal 2(9) No specific The RP includes measures consultations with APs, calls for every citizen to be provisions on consultations with APs, host communities, and able to participate, either including vulnerable groups, concerned NGOs. Inform all directly or through a for preparing during preparation and displaced persons of their representative, in the and implementation of RP. entitlements and consideration of any implementing Document includes specific resettlement options. matter affecting his RP based on consultation, information and Ensure their participation in interests or the interests of participation measures. planning, implementation, his community. meaningful and monitoring and consultations evaluation of resettlement programs. Pay particular with APs, attention to the needs of including the vulnerable groups, poor, the especially those below the landless, poverty line, the landless, elderly, women, the elderly, women and and other children, and Indigenous vulnerable Peoples, and those without groups legal title to land, and ensure their participation in

consultations.

Establish a grievance Land Disputes Settlement No The RP includes measures redress mechanism to Act provides for measures requirements on project-specific grievance receive and facilitate on resolution of disputes for a project- redress mechanism. resolution of the affected and grievances through specific persons’ concerns. Support both local mediation as grievance the social and cultural well as court process. redress institutions of displaced mechanism. persons and their host population. Where involuntary resettlement impacts and risks are highly No specific complex and sensitive, requirement for compensation and a social The Program is not expected resettlement decisions preparation to involve highly complex and should be preceded by a phase for sensitive projects, so it is not social preparation phase. highly complex needed to have a separate and sensitive phase. projects.

Improve, or at least restore, Principles of compensation No specific The RP includes measures of the livelihoods of all set out in NC s.53, LA requirement for on-site displaced persons through land-based relocation/replacement of (i) land-based resettlement s.23. resettlement, affected structures, strategies when affected replacement of compensation at replacement livelihoods are land based assets, and cost for affected assets on where possible or cash compensation additional land and priority of compensation at at replacement project employment to APs. replacement value for land cost, and when the loss of land does benefit sharing. not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

Provide physically and PNG allow people eligible PNG laws have The RP includes measures economically displaced for compensation to no specific on-site relocation of affected persons with needed receive their entitlements provisions on structures to the adjoining assistance, including the in cash. relocation, land following: (i) if there is transitional relocation, secured tenure support and

to relocation land, better civil housing at resettlement infrastructure sites with comparable and services. access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

Develop procedures in a NC National Goal 2(9) PNG Laws do The RP describes procedures transparent, consistent, and calls for ‘every citizen to not specifically for the negotiation on use of equitable manner if land be able to participate, require third- additional land with acquisition is through either directly or through a party landowner groups through negotiated settlement to representative, in the verification of memoranda of agreements ensure that those people consideration of any negotiated (MOAs) to be verified by a who enter into negotiated matter affecting his agreement. third-party. The MOA’s will settlements will maintain interests or the interests of be signed with respective the same or better income his community’. landowner groups. and livelihood status. LA sets out procedures for outright purchase or lease.

The Land Group Incorporation Act and Voluntary Customary Land

Registration Act enable incorporation of land groups and to register titles to customary land. These laws allow negotiated lease or transfer of such land.

The Fairness of Transaction Act sets out rules on fairness of transactions.

Ensure that displaced LA s.13-15 provides some PNG Laws do The entitlement matrix for the persons without titles to entitlement to not provide project provides for land or any recognizable compensation to any entitlement to resettlement assistance and legal rights to land are people with ‘an interest’ in non-titleholders compensation for non-land eligible for resettlement land over which the State who do not assets to non-titled APs assistance and exercises its power of have legal without legal interest. compensation for loss of no compulsory acquisition. interest on land assets land.

Prepare a resettlement plan NC National Goal 2(3) PNG Laws The RP has been prepared in elaborating on displaced calls for ‘every effort to be have no accordance with ADB SPS persons’ entitlements, the made to achieve an provision of requirements but there is no income and livelihood equitable distribution of preparing RP. physical displacement nor restoration strategy, incomes and other severely impacted APs and institutional arrangements, benefits of development hence physical resettlement monitoring and reporting among individuals and and income and livelihood framework, budget, and throughout the various restoration are not relevant time-bound implementation parts of the country’. schedule.

Disclose a draft NC National Goal 2(9) No specific The RP includes disclosure resettlement plan, including calls for ‘every citizen to requirements measures, including posting documentation of the be able to participate, on disclosures. on NAC and ADB websites consultation process in a either directly or through a and clan leaders/APs have timely manner, before representative, in the been provided with the project appraisal, in an consideration of any summary RP and information accessible place and a form matter affecting his brochures also in their local and language(s) interests or the interests of language. . understandable to affected his community’. persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

Conceive and execute No equivalent provision Gap. Land acquisition costs will be involuntary resettlement as included and financed out of part of a development the project cost. project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

Pay compensation and No equivalent provision Gap. The RP includes measures provide other resettlement on payment of compensation entitlements before physical for affected assets before or economic displacement. start of civil works on affected Implement the resettlement land. It also includes an plan under close implementation schedule. supervision throughout project implementation.

Monitor and assess No equivalent provision Gap. The RP includes monitoring resettlement outcomes, measures, including their impacts on the requirements of semi-annual standards of living of safeguard monitoring report displaced persons, and by EA and if necessary third whether the objectives of party monitoring. the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

B. Resettlement Policy Principles for the Project

46. NAC as the EA that has prepared this RP unequivocally states that it will abide by national and local laws applicable to resettlement and the policy requirements of the ADB. Specifically, NAC states that it will ensure affected landowners will be paid fair compensation for land and other productive assets acquired based on the valuation schedule 2013, taking into consideration the inflation rate to account for existing market price at the time of payment. NAC will be responsive to grievance processes and act in an accountable and transparent manner, and will ensure that women will also be entitled to benefit during the resettlement processes.

The principles on land acquisition, compensation and resettlement that NAC will commit itself to in the Buka Airport Project include:

(i) Land acquisition and resettlement will be optimized through careful engineering design. In particular, there will be very little or no displacement of people. Work will be within the designed footprint in the designated land portions. (ii) APs will be consulted during project cycle. RP will be prepared and updated with the participation of APs. Effective mechanisms will be established for hearing and resolving grievances. (iii) APs will receive compensation at updated calculated rates based on existing market prices for their loss of assets so that they will be as well-off without the project. (iv) All compensations will be fully paid to APs prior to the beginning of civil works in the project site. (v) Absence of formal title will not be a bar to compensation and assistance and particular attention will be paid to vulnerable groups. (vi) Land acquisition and resettlement will be conceived as part of the project and costs related to resettlement will be included and financed out of the project cost. (vii) The impacts of the project including unforeseen losses and damages that may occur during civil works will be carefully monitored and remedial steps taken as required.

C. Principles and Methodologies for Determining Valuations and Compensation Rates

47. NAC recognizes that affected land-users are entitled to full replacement cost. Valuation will be based on the current market rate by adjusting the valuation schedule 2013 from the Valuer Generals office, DLPP to include inflation rate at the time of payment. The schedule is the calculated cost taking into the account the crops, gardens and trees. The value of the land is based on the usage of the land (land use)

D. Description of Land Acquisition Process

48. Based on the Land Act 1996, the following procedures will be followed when acquiring the land:

 The first step would be to survey the land. NAC would request the DLPP to issue an official instruction number for the land investigation of the acquisition boundary area by submitting an application which includes brief information about the purpose, for which the land is required, and a sketch or coordinates of that land.  The state is then notified why the land had been surveyed. NAC notified the ARB Government of its intention to proceed with investigations for land acquisition.  The first step in acquiring the land begins and community consultations is carried out and information gathered is compiled into a Land Investigation Report. DLPP has prepared a Land Investigation Report (LIR) including ownership genealogy, rights and interests held in the land, and, estimated value of improvements to land in consultation with the landowners and other relevant government offices.  As part of formalities, the state, in this case, the provincial government is informed about the outcome of the community consultations and meetings. The LIR has been submitted to the ARB Government in Buka for its recommendation for the surveyed land to be alienated. The Department of Provincial and Local Level Government (DPLLG) will prepare a certificate of alienability confirming that there is no impediment to land acquisition.

 This same report is also given to the Valuer-General in order for valuation of assets to be made. Valuation has been done through the Office of Valuer General and this is available for the compensation payment.  Once feedback is received from the Provincial government and the Valuer General, paper work needed to acquire the land begins. NAC will receive the valuation report and certificate of alienability, raises cheques and prepare purchase documents. The signed documents are sent to ARB Government in Buka for their concurrence although NAC is responsible for payment after it secures funds from the GoPNG.  The final step towards acquiring the land is consultation with the communities on the valuation price at replacement cost of the land that will be acquired. ARB Government makes the offer to the landowners and this will be accepted. Hence the forms are executed and money is handed over in accordance with the requirements of the landowners. If rejected, it then goes to the Minister of Lands for Acquisition of the Land by the DLPP.

VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

49. During the fieldwork consultations for Buka airport, initial interviews were undertaken with community members and local elders or chiefs that will be affected by the project. NAC will further consult the affected landowner clans and mutually agree on the detail land investigation of ownership together with land surveying in coordination with AROB Government relevant officer. The date of the signing of the LIR by the Chief Administrator and the Provincial Lands Advisor will be the ‘cut-off’ date for eligibility for compensation and any rehabilitation assistance for the respective clan members. The cost of compensation and allowances for the affected persons is based on DLPP Valuer Generals 2013 rate. Affected assets and final compensation will be reconfirmed prior to civil works. Table 1 below provides an estimate that will be updated following detailed engineering design.

50. Persons that are not covered in the census, which is included in the LIR are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL; or (ii) they have lawfully acquired the affected assets following completion of the census and the IOL and prior to the conduct of the detailed measurement survey (DMS). Any person or group that occupies or uses the land identified for the Project after the cut-off date will not be eligible for any compensation and/or assistance. They will be required to move from the land as per the provisions of the Land Act.

51. Landowners and land users should be able to show either documented claims to the affected land or are able to demonstrate that the land belongs to them or they are using the land. Unless, this is deemed satisfactory by DLO, this claim will be rejected.

52. Landowners and land users who have satisfied the DLO that they either have documented claims to the affected land and/or other productive assets or through the DLO investigation can demonstrate that they are the rightful owners or users will receive compensation for land acquired by the Project. Those APs who cannot satisfy the DLO that they are the rightful users but are using the land anyway will receive compensation for productive assets attached to the land and other assistance as required.

53. Eligibility and entitlement for compensation and other assistance for the APs under this project is summarized in the Entitlement Matrix below.

TABLE 6: ENTITLEMENT MATRIX

Type of Impact Entitled Person (s) Entitlements Permanent acquisition Legal owner(s), including Landowners will be provided equivalent size of land. customary landowners and quality of land, or cash compensation at replacement cost. Informal settlers (e.g. on land acquired as part of APs will be provided compensation only for ROW) with no legal rights their damaged crops, trees, and structures on project-affected land

loss of crops, tress, Customary land owners and APs will be given notice to harvest crops structures and assets. leaseholders if lease not and trees before site clearance or removal expired prior to from required land. If APs are not able to commencement of land harvest, they will be paid cash clearance. compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for a period until new crops or trees produce an equivalent income. Unforeseen or Concerned displaced These will be determined as per the unintended impacts persons principles of this RP and ADB’s Safeguard Policy.

54. If payment of compensation is delayed, compensation rates will be updated regularly based on inflation rates to ensure that APs receive compensation at replacement cost at the time of compensation payment. Changes to compensation amounts will be verified and approved by the office of the Valuer General.

VIII. RESETTLEMENT BUDGET AND FINANCING PLAN

55. CADIP adapts the principle that all compensation for affected assets will be paid at replacement cost based on current market price. The DLPP Valuer Generals Office will verify and approve (i) all compensation rates, and (ii) total amount of compensation to be paid. Table 7 below is the estimated budget for the compensation, with contingency which will account for changes in the rates to capture the current market price.

Table 7: Estimated Compensation Costs,

Amount Rate Cost COMPENSATION Hectares (Ha) Kina Kina USD Cash crops 1,615.25 13.76 Ha 6,518,384.75 unimproved land value

contingency 1,000,000.00 Administration & 50,000

Monitoring 7,570,000.00 GRAND TOTAL

A. Flow of funds

56. Funds for land or other productive assets to be acquired will be paid directly to APs by NAC. This will ensure considerably greater accountability and transparency than being disbursed by other means. Payment for temporary use of land during project implementation is made directly by the contractor to local APs based on an agreement between the two parties as to the actual amount and in line with the project’s safeguards policy. This will not involve the NAC or other parties unless APs are dissatisfied with the amounts offered by the contractor.

B. Sources of Financing

57. GoPNG together with AROB Government is financially responsible for all resettlement activities. The payment for crops and trees will be made to 5 households (16 persons). LIR will identify customary landowners entitled for compensation payment for the lands to be acquired.

IX. INSTITUTIONAL ARRANGEMENTS

A. Institutional Capacity for Resettlement Activities

a. National Airports Corporation

58. As the Executing Agency (EA) for CADIP, National Airports Corporation (NAC) has overall responsibility to manage the planning, implementation and monitoring related to acquiring use rights for additional land to implement airport upgrading, as well as compensation for damages on affected land.

b. CADIP PIU

59. The Program Implementation Unit (PIU) for CADIP to upgrade and rehabilitate airports, has the responsibility delegated by the NAC by the GoPNG to carry out the planning, implementation and monitoring for land activities, as required. These include but may not be limited to the following:

(i) collaborate with and assist PLO and/or DLO to carry out their work in compliance with the NAC policies and ADB requirements; (ii) provide qualified personnel to conduct and/or assist PLO and/or DLO to carry out surveys including fieldwork to support the airport screening and preliminary assessment of additional land requirements; and, as required, a census of affected persons, the assets surveys and socio-economic baseline survey; (iii) collaborate with PLO and/or DLO for negotiations regarding Memoranda of Agreement (MOA) and leases for temporary use of land; (iv) coordinate and carry out consultations with affected communities, including leaders, affected persons and other interested community members; and, ensure that all stakeholders are informed in a timely manner about the project, its policies and procedures; ensure that all requirements are carried out concerning public disclosure of the provisions for land acquisition and compensation; and, oversee and monitor the grievance redress process; (v) review and endorse the draft RP as prepared by PIU and/or its consultant prior to submitting it to NAC and, subsequently, to ADB for approval, making sure that all matters related to land acquisition are complete and properly reported;

(vi) monitor the process of allocation and disbursal of funds for compensation at both the national and provincial levels, and ensure that funds are available and compensation is paid in a timely manner as per the provisions of the approved RP; (vii) carry out all other activities related to internal monitoring of land acquisition activities; (viii) coordinate with civil works contractors to ensure that required land is cleared in a timely manner, that unforeseen damages and losses are recorded and compensation paid and that all other steps and measures are taken to complete the civil works in an efficient manner.

60. The National Safeguards Officer with support from the International Social Safeguards Specialist will be taking the lead in managing the safeguards implementation. During project implementation, specific daily issues will be captured by the NAC Safety Officer for Buka Airport including monitoring of the RP implementation.

c. Provincial Administrations

61. The Provincial Land Officer (PLO) will collaborate with PIU to plan, implement and monitor land activities for Buka airport project in the province and/or delegate responsibility to the relevant District Land Officers (DLO). The PLO responsibilities include:

(i) conducting surveys of land required permanently or temporarily for the airport; (ii) negotiating and signing a Memorandum of Agreement for permanent use of customary land with the leaders and affected land owners in communities will land is affected; (iii) negotiating and signing leases for temporary use of land required for the airport; and, (iv) consulting with and advising affected communities about CADIP, the policies and procedures when additional land is required and the rights and responsibilities of affected persons and other stakeholders.

62. The Provincial Governor and/or Provincial Administrator (PA) is responsible to ensure that funds are allocated and disbursed to pay compensation and allowances for provincial (and/or district) airports that are included in CADIP.

d. District and LLG Administrations

63. The District Land Officer (DLO), as delegated by the PLO, will collaborate with PIU to plan, implement and monitor land activities for Buka airport project in the district, including:

(i) conducting surveys of land required permanently or temporarily for the airport, and preparing Land Investigation Report (LIR); (ii) negotiating and signing a Memorandum of Agreement for permanent use of customary land with the leaders and affected land owners in communities where land is affected; (iii) negotiating and signing leases for temporary use of land required for the airport upgrading; and, (iv) consulting with and advising affected communities about CADIP, the policies and procedures when additional land is required and the rights and responsibilities of affected persons and other stakeholders.

64. LLG Ward Councilors will be effective participants in all consultations with local communities, affected persons and other stakeholders. They will be responsible for collaborating with PIU to organize and carry out these consultations.

e. Institutional Capacity Building Program

65. During the PPTA it was concluded by NAC in Port Moresby that its staff who would be involved in implementing this LARP require more training in the ADB’s social safeguard policies and procedures because this Project will be the first one with land acquisition and resettlement to be implemented by NAC under CADIP. The project will provide consultancy support via International Social Safeguards Specialist to roll out necessary trainings and support to build safeguards implementation and monitoring capacity within NAC.

f. Role of Civil Society Groups

66. While there are some civil society groups in the Project area, they are not eligible for RP purpose. However, there are at least two Port Moresby based NGO groups - Centre for Environment, Law and Community Rights (CELCOR) and Environment Law Centre (ELC) - that are non-sectarian in nature and have a good understanding of both gender and indigenous people’s development issues and are better able to work more effectively with local communities than other NGOs. These NGOs are also more cost effective. This NGO however will need to be checked out by NAC to ensure that they are an appropriate organization for us to work with. NAC intends to undertake the monitoring itself but if APs feel NAC is less than diligent the latter will invite one of these NGOs or if a similar NGO can be found in New Ireland Province to undertake subsequent monitoring and report to ARB Government, NAC and APs of findings and recommendations that is agreed by all parties concerned that will be updated in this RP and implemented.

67. Civil Society Organization (CSO) and Non-Government Organization (NGO) will be engaged by NAC and the contractor to carry out awareness on HIV/AIDs and sexually transmitted diseases during construction. They will also be involved in awareness for communicable diseases to the surrounding town communities. NAC will also continue existing collaboration with CSO, NGOs to talk to mothers in regards to the utilization of the mini market to be established and NAC and CSOs will carry out awareness to the general public on Airport Safety Regulations.

g. Involvement of Women’s Groups in Resettlement Planning and Management

68. NAC will ensure that women will not be disadvantaged during the implementation of LARP particularly ensuring that women will be paid equally to men APs and will have equal access to employment opportunity from the project.

X. IMPLEMENTATION SCHEDULE

69. The detailed implementation schedule is in table 8 below.

TABLE 8: IMPLEMENTATION SCHEDULE

S. N ACTIVITIES SCHEDULE

Update of Resettlement Plan 1 Confirmation of Land Compensation and Valuation Acquisition March 2016 Report with DLPP and APs 2 Confirm land requirements based on engineering design May 2016 3 Getting authorization from Department of Land for land survey May 2016 4 Follow up consultation with affected communities and May 2016 agreement on land use/acquisition 5 Survey of land and submission to Surveyor General for June 2016 registration 6 Ask PLO/DLO to compile LIR (including valuation of land and June-July 2016 improvement) 7 Submission to Department of Provincial Affairs for certificate Ju ly 2016 of alienability to be signed by Secretary and affected LLGs 8 Valuer General verifies the land valuation August 2016 9 NAC to disclose draft RP to affected persons and other March 2016 stakeholders 10 NAC submits the draft RP to ADB for approval and posting on March 2016 ADB website 11 ADB no-objection to draft RP Early April 2016 12 NAC to prepare final draft of the RP September 2016 13 ADB no-objection to the final draft RP September 2016 14 NAC issues cheques to PLO for execution of land acquisition November 1, 2016 and payment of compensation 15 PLO completes land purchase and issue Completed Land November 30, 2016 Acquisition documents Resettlement Plan Implementation 16 NAC submits to ADB the compensation completion report March 2017 17 Award of civil works contract April 2017 18 Clearance of acquired land December 1, 2016 19 Start of civil works (only after compensation and allowances April 2017 payment) Monitoring Plan 20 NAC establishes AP socio-economic baseline May 2016 21 NAC submits progress and monitoring report to ADB on Six Monthly implementation of RP 22 NAC final monitoring and evaluation report April 2018

XI. MONITORING AND EVALUATION

A. Internal Monitoring

70. The Safeguard Officer of PIU will monitor all activities associated with land acquisition and payment of compensation to APs. The scope of monitoring includes: (i) compliance with the agreed policies and procedures for land acquisition; (ii) prompt approval, allocation and disbursements of funds and payment of compensation to APs, including supplemental compensation for additional and/or unforeseen losses; (iii) the availability of other resources and efficient, effective use of these resources; and, (iv) requirements for remedial actions.

71. During the implementation of the RP, the PIU will submit semi-annual social safeguards monitoring report to ADB as part of project performance monitoring. PIU will also submit

compensation completion report when compensation has been paid and request approval to proceed with civil works.

72. The PIU will be supported by an intermittent international safeguard specialist (ISS) who will mentor the locally recruited full time safeguard specialist to conduct monitoring for Buka airport that require land acquisition. This position will be supported by and linked to the Community Liaison Officer (CLO) work. Monitoring will cover the social impacts of the airports and whether APs are able to restore, and preferably improve, their pre-project living standards, incomes, and productive capacity.

73. The ISS will assist in preparing bi-annual monitoring reports; and, conduct post-acquisition evaluations twelve (12) months after compensation is completed for each airport. All safeguards reports will be submitted to PIU and ADB.

Entitlement Matrix

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues Affected Land Temporary Customary Use of the land will be acquired Compensation The agreement use of land: through negotiated lease with (in form of land to use customary land Land users landowners. lease) for use of land whether as Cash compensation at replacement land. temporarily or recognized cost will be paid for any damaged Compensation permanently will by clan crops, fences or other structures for damaged be negotiated leaders located on project-affected land. crops, trees, based on the following In the case of construction camps, fences or other conditions: the civil works contractor will structures. negotiate directly with the landowner a) landowners to reach agreement regarding the agree to and payment of royalties. support the upgrading and State-owned No compensation will be paid for use Compensation rehabilitation of land: of the land. for damaged the airport; crops, trees, Encroachers Cash compensation at replacement b) landowners fences or other or squatters’ cost will be paid for any damaged are consulted structures. settlements crops, trees, fences or other and make structures on project-affected land. informed The users/occupants will remove decisions from the land at their own expense, regarding as per the Land Law. agreements to use land; and Permanen Customary Use of the land will be acquired Compensation t use of land: through a negotiated Memorandum for value of c) they guarantee on land Land users of Agreement with landowners. affected land. behalf of all clan (including as Cash compensation at replacement Compensation members that garden recognized cost will be paid for any damaged for damaged they will not and by clan crops, fences or other structures on crops, trees, disrupt the residential leaders project-affected land (see below). fences or other project in other land) structures. ways.

State-owned No compensation will be paid for use Compensation land: of the land. for damaged Users or Cash compensation at replacement crops, trees, occupants cost will be paid for any damaged fences or other crops, trees, fences or other structures. structures on project-affected land (see below). The users/occupants will remove from the land at their own expense, as per the Land Law. Affected Assets Annual Owners of Compensation for loss of or damage Compensation All compensation crops the crops to annual crops on project-affected for damage to or rates and land as follows: loss of standing amounts will be a) APs given notice to harvest crops crops to ensure verified and

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues before clearance or removal from income approved by the required land; OR, if APs are not restoration. office of the able to harvest Valuer General. b) cash compensation calculated All compensation according to the Valuer General’s assessed prior to Compensation Schedule; AND as damage or required removal shall be c) an additional grant to ensure paid in full prior replacement cost as per local market to the beginning prices. of civil works. If further damage Perennial Owners of Compensation for losses or Compensation or loss occurs crops and crops and damages as follows: for damage to or during civil trees, trees loss of perennial a) APs given notice to harvest crops works, CADIP including crops and trees before clearance or removal from PIU will carry out coffee to ensure income required land; AND, supplementary shade and restoration. b) cash compensation for lost plant assessments timber or tree calculated according to the and take steps to trees Valuer General’s Compensation get approvals for Schedule; where required project will and payment of pay an additional grant to ensure that additional APs are able to buy new plants or compensation to trees of equal or better quality; AND, which APs are c) in the case of perennial crops and entitled as trees, a grant equal to the lost rapidly as income for the period of time until possible. new plants or trees produce a yield All compensation similar to the lost plants/trees; OR shall be paid to d) Compensation will cover the loss of the owners of the income for the crop over the land’s affected assets. productive period. This will be calculated If, for example, in terms of income for the land’s women’s productive period projected over a gardens are number of years. affected, the e) in the case of timber trees, APs compensation will be permitted to harvest trees and will be paid to sell the timber. the affected women. Allowances Shifting Owners of A shifting allowance equal to the Restoration of The allowances back of structures provincial minimum wage a livelihood / for shifting semi- maximum period of two weeks to economic structures and permanent compensate for lost business activities. loss of business and revenues while shifting the structure income are temporary to a location outside the area based on structures designated for the road. information provided by local Disruption Owners of A disruption allowance equal to the Restoration of informants about of trade stores provincial minimum wage for the livelihood / the likely time business and other number of days that business is economic required, e.g., to activities roadside disrupted due to lack of access or activities.

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues due to civil businesses, other consequences of civil works. shift a structure works including and the loss of airport income. market and At the time that handicraft the shifting vendors allowance is Relocation Owners of A moving allowance to cover the Restoration of paid, the trade of structures costs of moving personal conditions. store owner will permanent possessions, paid in cash or in kind sign an structures (e.g., provision of transport). agreement with CADIP PIU Vulnerable APs that are Additional cash grant to head of AP Poverty regarding the APs female household. The value of the cash reduction date of removal household grant will be calculated based on the measure and from the land heads, provincial minimum wage as development required for handicapped established by the Minimum Wage upgrading the and/or Board for a period equal to number Airport facilities. elderly, as of days that livelihood is disrupted determined during social surveys Airport- APs Priority for paid work for civil works Poverty affected including and/or ongoing maintenance for reduction persons vulnerable airport road, assuming qualifications measure and APs to do the work. development

2. Gurney Airport Resettlement Plan.

Executive Summary

1. The Gurney Airport Runway Extension & Associated Works (The Project) is part of Tranche 3 of the Civil Aviation Development and Investment Program (CADIP), funded by the Asian Development Bank (ADB) and co-financed by the Government of Papua New Guinea (GoPNG). The National Airports Corporation (NAC) is executing CADIP. The project will allow for additional 210m extension to the existing runway to give 1900m which will allow for unrestricted Fokker 100 series aircraft landing and taking-of at its maximum take-off weight. In addition, a further 90 metres is required beyond the 210 metres for the construction of the Runway End Safety Area (RESA). The project will increase air transport and related business opportunities in Alotau, Milne Bay Province.

2. This Resettlement Plan (RP) is prepared with the intent to acquire 22.83488 hectares of land area that will be transferred from an Agricultural Lease to a Declared Aerodrome Land.

3. Eligibility of entitlements for the affected persons (APs) is mainly the compensation due to permanent acquisition of land, loss of crops and oil palm trees and loss of structures. Any unforeseen impacts to APs will be determined as per the principles of this RP and ADB’s Safeguard Policy. The entitlements for this project are stated in table 1 below. However, a complete entitlement matrix for the type of impact, entitle person for the entitlement for RP as per the Resettlement Framework (RF) is set out in Annex 1.

TABLE 1: PROJECT ELIGIBILITY AND ENTITLEMENTS FOR AFFECTED PERSONS

Type of Impact Entitled Person (s) Entitlements Permanent acquisition of Customary Landowners Landowners will be monetarily land compensated for loss of productive land and NAC finances development of land outside the easement for cultivation and other commercial crops as well

Loss of crops and trees All APs irrespective of their APs will be given notice to harvest crops legal status and trees before site clearance or removal from required land. If APs are not able to harvest, they will be paid cash compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for a period until new crops or trees produce an equivalent income Unforeseen or unintended Concerned affected These will be determined as per the impacts persons principles of this RP and ADB’s Safeguard Policy.

4. Valuation carried out by the Department of Lands and Physical Planning (DLPP) and Valuation Report (VR) documented in 2012 and 2013 counted a total of 1147 medium palm trees grown on the 22.83488 hectares will need to be acquired and removed to make way for the project. This additional land required and palm trees belong to Milne Bay Estates (MBE) and block holders shall be paid before removal. In addition, planted gardens and structures already removed by the block holders in anticipation of the project. The food gardens and structures affected belong to four households (18 persons). The value of the lands and improvements i.e. oil palm trees together with food gardens and payment to structures will be paid in full to the owners before the runway extension work will proceed. The total compensation for land to be acquired is K6, 869,000 while for the affected structures of the block holders amount to K70,807.20. These rates will be adjusted to account for existing market prices taking into account the inflation rate by the time the payment will be made. A contingency of K1,837,192.80 is budgeted to ensure that adjustment in the valuation rate will be accommodated and K63, 000.00 is budgeted for the administration and monitoring of the RP implementation. Confirmation on the loss assets such as structures and crops and tress will be undertaken by NAC prior to the compensation payment. Summary of Land Acquisition is in Table 1.

TABLE 1: SUMMARY OF LAND ACQUISITION and Compensation

Total land to be acquired by Agriculture Lease Transfer Portion 245,221,339 228 and 230 (22.83488 ha) Planted Improvement Value of 1147 medium oil palm trees PNGK2,821,000.00 Unimproved Land Value PNGK4,048,000.00 Payment to block holders including shifting allowance PNGK 70,807.20 Total Compensation PNGK6,939,807.20

Contingency PNGK 1,837,192.80 Administration and Monitoring of Land Acquisition PNGK63,000.00 Total land acquisition budget PNGK 8,840,000

5. In addition, the value of the total land valued on a market basis shall be paid through the GoPNG through DLPP for aerodrome purpose as ‘public utilities for public purpose. NAC will ensure that adequate funds are allocated and disbursed to pay compensation for affected land and assets. A National Executive Council (NEC) Submission will be made on May 2016 for the budget for acquisition.

6. The Milne Bay Provincial Administration (MPA) together with NAC has undertaken consultations with communities’ adjacent to the airport to provide input for this RP. Active support has shown from the Milne Bay Provincial Administration as this will boost their tourism business initiatives. There was a test flight made from Brisbane to Gurney in 2015 during one of the province cultural event called ‘canoe festival’.

7. NAC will submit semi-annual reports to ADB on the implementation of the RP. It will also submit a Project land transferred and acquisition completion report to ADB once land and productive asset compensation has been completed.

A. Project Description

8. The current state of the airports in Papua New Guinea is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centers in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

9. The third and fourth batch of development investments under CADIP will be the upgrading and rehabilitation of the existing Madang Airport in the Milne Bay Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in Sandaun Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville, Momote Airport in the Manus Province and Gurney Airport in the Milne Bay Province. Only the scope of works for Gurney Airport is in Table 1. Figure 1 is a location map of Gurney while Figure 2 shows an aerial view of the Gurney Airport and the extension while Figure 3 is the design and extension layout view.

10. Gurney Airport Runway Extension is one of the projects identified and funded by ADB to meet international standards and requirements by ICAO. This sub project comes under Batch of the Civil Aviation Development and Investment Program (CADIP) to be implemented by National Airports Corporation.

11. The Gurney Airport Runway Extension and Associated Works increase the existing runway by 300 (210 + 90) metres as well as taxi way and apron areas together with instrumentation. Table 1 provides the scope of the activities.

FIGURE 1 MAP OF PNG SHOWING THE LOCATION OF GURNEY AIRPORT, MILNE BAY PROVINCE

Gurney Airport

FIGURE 1: GURNEY AIRPORT AND THE PROPOSED RUNWAY EXTENSION

CIS facilities

Palm Oil Plantation

Terminal facilities area

Palm Oil Plantation Proposed Runway Extension Area Road going to Alotau Town

Palm Oil Plantation

FIGURE 2: LAYOUT OF THE GURNEY AIRPORT EXTENSION

TABLE 2: SCOPE OF WORK FOR GURNEY AIRPORT

Sub Project: Location: Gurney Airport Milne Bay Proposed Development Works Province

A: Aircraft Pavements and Associated Airside Works i. Extend Runway by 210m to eastern end to give 1900m overall length including new turning node; ii. Construct 3m wide Shoulders to extended Runway both sides; iii. Prime and two-coat bituminous spray seal (10mm/7mm) and sand overcoat to constructed pavements including shoulders; iv. Construct Stopway at extended runway end; v. Reseal existing pavements with single coat bituminous seal (7mm) and sand overcoat; vi. Construct Runway End Safety Area (RESA) unsealed at both runway ends; vii. Construct reinforced concrete wheel pads for 2 x F100 aircraft parking bays; viii. Apply fuel resistant membrane ('MasterSeal II TM') on 3 x aircraft parking bays; ix. Apply pavement line markings; x. Runway Strip grading, top soiling and grassing within 90m width on extended end; xi. Improvements to airside drainage system including construction of subsoil drainage and Open Unlined Drains (OUD); and xii. Construct concrete encased duct bank beneath Runway Extension;

B: Landside Works, Airfield Lighting and Electrical Works & Associated Works i. Relocate and adjust PAPI lighting system at eastern end including concrete base footings, trenching, electrical reticulation, inspection pits, flight testing and commissioning; ii. Divert existing Open Unlined Drains (O.U.D) at the eastern end and, supply and install a new culvert beneath the RFFS access road on extended Runway centerline; iii. Install 1 x new multi-cell culvert beneath the Plantation Access Road; iv. Construct Power House including electrical reticulation; v. Supply, deliver, install and commission 2No. x 150KVA Cummins Diesel Standby Generators including warranties; vi. Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; vii. Supply and deliver to site 1 x M95 Kubota 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer; and viii. Construct new Airport Market with Security Fencing and gates including power supply, water tanks, and public toilet, carpark and security lights. ix. Supply, deliver, install and commission a new Petro Cube 6300L Diesel Fuel Tank including accessories. x. Supply and deliver 70No. Airfield Fibre Glass Cone markers (30 white, 20 yellow, 20 red and white). xi. Supply and deliver 3No. standard Unserviceability Crosses painted white. xii. Supply and deliver 70No. 20 litre-drums of paint (40 white, 20 yellow, 10 black) for future NAC use. xiii. Supply and deliver 2No. 200 litre-drums of Fuel Resistant Membrane ('Master Seal II TM') for future NAC use. xiv. Supply, delivery and installation of 2No wind indicators in accordance with the details and locations shown on the drawings.

Note:

Allowance is made for other miscellaneous works including General and Preliminary items.

12. The project follows appropriate engineering design and the land acquisition is essential to the runway extension and resettlement impacts are contained within this plan. The project will use the existing access road running parallel to the airport to get to the south eastern end where the runway will be extended.

13. The Gurney Airport Extension Project investment cost (excluding land acquisition costs) is estimated at US$18.1 million (PGK50 million) and involves clearing of 22.83488 hectares for the additional 300 metre length of the runway making it up to 1900 metres. Associated works include the construction of new terminal building, aircraft pavement and RESA areas and provision of bore water and maintenance equipment as stated in Table 1.

B. Scope of Land Acquisition and Resettlement

14. The area that is required for the airport runway extension is 22.83488 hectares under agricultural lease with both the block holders and Milne Bay Estate (MBE) Company. The breakdown is in Table 2. This will be rezoned as aerodome land and allocated to NAC to develop, operate and manage. Specifically, the 1147 oil palm trees will be removed to make way for the development. The oil palm trees are owned by the Milne Bay Estates (MBE), a subsidiary of the New Britain Oil Palm Limited. The acquisition of 20.80 hectares out of the 6,000 hectares of land being lease by MBE represents a .35% loss of their productive assets.

TABLE 2: AGRICULTURAL LEASE AND IMPROVEMENTS FOR ACQUISTION (Milne Bay Estate)

Agriculture Area (Ha) Portion Planted Unimproved Total Lease Improvement Land Land Value (PNGK Value (PNGK) Value (PNGK) Vol 102 Folio 52 4.0378 245 None 1,210,000.00 1,210,000.00 Vol 10 Folio 50 8.7463 221 None 2,624,000.00 2,624,000.00 Vol 102 Folio 112 9.338 339 2,821,000.00 2,821,000.00 (palm oil) 230 Vol 102 Folio 91 0.71278 228 None 214,000.00 214,000.00 Total 22.83488 2,821,000.00 4,048,000.00 6,869,000

15. There are 2 block holders which will be affected. Due to strong family ties, respect and responsibilities in their culture, the two block holders have accommodated two of their family members sharing their respective block for gardening. Hence, there are four affected households (18 persons) altogether in the two blocks. All of them will lose planted improvements and structures as a result of this project (Table 3). Annex 2 details the types of crops and trees to be affected. 2.036 hectares of land to be acquired from block holders represent 12% of their total land under state-lease title. However, these lands are without existing source of income, aside from crops and food garden, and no planted improvements such as oil palms which are the main source of their income. The block holders have also existing rights to the customary-owned lands of their tribes. The lands have not been acquired yet by the project. However, they voluntary removed the structures and food gardens in 2014 in anticipation of the project. Compensation has not been provided by the government with consent by the block holders. This did not impact them significantly as they still have substantial land left which can be planted with food gardens and removed houses were replaced easily. Nevertheless, immediate actions to facilitate compensation have been identified and will be implemented by the government.

Table 3. Agriculture Lease and Improvements for Acquisition (Block Holders)

Portion Planted Improvement Unit Value (Kina) 230 Semi-permanent 43 sq. meters 21,500 house Bush Material House 97.88 sq. meters 14,682 Bush Material House 89.25 sq. meters 13,388 Bush Material Toilet 9 sq. meters 450 Hut Crops and trees 3,945 (number) 18,787.20 Shifting Allowance 2000.00 Total 70,807.20

16. There are no common property resources within the designated land. If there are unanticipated impacts to be identified during implementation, then RP will be updated based on the social impact assessment or a corrective action plan will be prepared and implemented as per ADBs SPS 2009 if there will be non-compliance.

C. Socioeconomic Information and Profile

I. Demographic Features of Affected Peoples

17. Apart from MBE as a company, the block holders are locals. Both are retired public servants who are now basically doing freelance works to maintain their household income. Both block holders have patches of oil palm blocks and food gardens within their portion of land they are leasing. Income generated from their oil palm blocks and selling of food gardens at the nearby market supports their household income. In addition, their informal marketing of Betel nut, cooked or baked food and store goods item, financial support from relatives and other family members adds to their total household income. The portion of their lands to be acquired will not substantially impact their overall household income as it constitutes a small portion of the lands they owned including the landholdings they are leasing.

II. Impacts of Land and Asset Acquisition on Affected Peoples

18. A household assessment for the two block owners including their two family members is captured in the government’s valuation report. The members of the family include 8 females and 10 males. There are no vulnerable members of the family who can be defined as vulnerable groups according to ADB’s SPS 2009. All members of the family contribute to their household income in sustaining their live hood. This clearly indicates an improved and sustainable income for the family which is well above the poverty line. The table below gives an estimation of household income per year measuring against poverty line of people living on US$1 per day.

TABLE 4: TOTAL HOUSEHOLD INCOME FOR THE TWO BLOCK HOLDERS AND THEIR FAMILY MEMBERS (Kina)

Income Block 1 Block 2 Owner Family member Owner Family member Oil palm sales 5720 - 7815 - Informal marketing 3640 300 500 200 Other Family member 600 14,200 500 500

financial support or contribution through wage labor Livestock (Poultry & Pig) Second hand clothing Sales of garden crops 100 200 300 200

Overall total income 28,360 10,015 (year)

Daily income K77.70 K27.43

19. Total family income for one block is estimated to be K28,360 while the other is K10,015 per year. On a daily basis, this would be K77.70 for block 1 and K27.43 for block 2 which is above the poverty line of US$ 1 (K3.00) per day.

III. Socio-economic Profile of the Milne Bay Population

20. The estimated rural population of Milne Bay Province is 60 000 (2000 census). The highest population densities are around Agaun with 120 persons/km2, while the coastal plains between Rabaraba and Wedau have 85 persons/km2. The valleys of Cape Vogel, most coastal areas east of Wedau and the plains of the Maiwara and Sagarai rivers have densities of 30 persons/km2. Other areas in the district have low densities of 10 persons/km2. There is significant in-migration of people to the coastal plains around Alotau.

21. Certainly the sub project area around Gurney airport may see in migration. However, there will only be in-migration from extended families and not everyone will come close to the project area.

a. Access to services

22. There is a good network of roads in a small area around Milne Bay and on the oil palm developments near Sagarai. Elsewhere there are foot tracks along the coast and into the mountains. Travel along the coast is by motor boat. People on the coast of Milne Bay, south coast around Suau and the Sagarai Valley require less than four hours’ travel to reach Alotau.

23. People in most other areas of the district require 4–8 hours travel to reach the nearest service centre, except for those around Pumani who are very remote and require more than one day’s travel.

24. For the block holders and most of the Milne Bay Estate workers, Alotau town is only less than half an hour by vehicle and hence they would have had easy access to health and education and business services there.

b. Income

25. Incomes on the coast of Milne Bay and in the Sagarai Valley are moderate and are derived from the sale of oil palm, coconut, fresh food, betel nut, cocoa and fish. People in the inland valleys earn low incomes from the sale of coffee, fresh food and potatoes; while all other people in the district earn very low incomes from minor sales of fresh food and coconut. There is some non-agricultural income around Alotau and Sagarai from business activities, wage employment and tourism.

c. Subsistence agriculture and nutrition

26. In the Ruaba, Kutu and Mase valleys, and along the coast from Rabaraba to Wedau, agriculture is dominated by low intensity sweet potato cultivation. Some irrigation is used on taro gardens in the Rabaraba area. In the coastal valleys of Cape Vogel, people cultivate moderate intensity banana gardens. There are two consecutive plantings before a fallow period of 15 years. People in all other areas in the district make low intensity mixed staple gardens. Coconut is an important food in all areas.

d. Land potential

27. The land potential is high to very high in the Maiwara, Gumini, Sagarai and Dawa Dawa valleys and in coastal areas of Milne Bay. Most of the north coast has low to moderate potential caused by poor soils, long dry seasons and occasional drought, while the coastal plains of Orangerie Bay have moderate potential due to frequent flooding. Cape Vogel and the Ruaba Valley have very low to moderate potential limited by poor soils, steep slopes, long dry seasons and occasional drought.

e. Agricultural pressure and potential

28. The most recent consultation meeting with the MBPA and NAC was in August 2015 for the purpose of the Periodic Financing Request’s safeguard awareness including main concerns relating to MBE and the block holders were briefly discussed. Separate discussions were held with MBE and block holders. The sample of the notification letter for the consultation in October 2015 is attached as Annex 3. The consultation was conducted by Barksy Panka (Project officer, CADIP NAC) supported by John Duguman (ADB Safeguard Specialist consultant). Table 5 provides the summary of the outcome of the consultation including names of the attendees. This information is also in the IEE.

f. Disadvantaged people

29. The most disadvantaged people in the district are the small populations around Pumani where the environment has very low potential, incomes are very low and access to services is poor. They have few opportunities to improve their livelihoods. People in nearby areas of the Ruaba Valley have similar constraints but the land potential is moderate. On most of Cape Vogel, people are constrained by moderate to strong agricultural pressure and very low incomes. People on the north coast from Wabara Point to East Cape have very low incomes.

30. Overall, people in Alotau District are seriously disadvantaged relative to people in other districts of PNG. There is some agricultural pressure, land potential is moderate, access to services is poor and incomes are low. Child malnutrition is of concern.

IV. Project’s Impacts on Poor, Different Ethnic Groups, and other Vulnerable Groups

31. There are no poor, ethnic or vulnerable groups of persons in this sub project that will be affected.

D. Information Disclosure, Consultation and Participation

I. Project Stakeholders

32. The primary stakeholder of the Gurney airport runway extension project is the Milne Bay Estates and the 2 block holders and their families from which the Agricultural Lease will be rezoned and reallocated to the National Airports Corporation. The National Airport Corporation will be the new owners of the rezoned aerodrome land.

33. Other stakeholders include Provincial and National governments and the surrounding communities in the project area.

II. Consultation and Participation Mechanisms

34. The consultation and disclosure activities undertaken for the preparation of the RP of the sub-project in Gurney started early. Since 2008 up to 2013, the GoPNG set out plans to acquire the airport land as they saw this as an opportunity from the first batch of funding from CADIP to increase adventure tourism and related business opportunities in Milne Bay Province. Consultation held with nearby communities including the affected persons raised some of their concerns with regards to the project. Their main concerns were (i) local participation as subcontractors, (ii) priority in employment opportunities for both men and women, (iii) supply and installation of water bore reticulation for the block owners, (iv) involving local women/church/youth groups, and (v) improve airport market space, (vi) improve access road for the two block. These issues were taken into account in the project implementation plan where feasible.

35. RP follow-up consultations with MBE and one of the block holders were held on 16 March 2016 with participation from ADB Mission. MBE and block holders remain supportive of the project and willing to release the land provided the compensation will be paid and proper transfer of land-use title will be done. Consultation will be continued by NAC with MBE and block holders to confirm the loss of assets and adjustment in compensation using existing market prices at the time of payment.

TABLE 5: CONSULTATION POINTS FROM NAC- MBPA MEETING

Date Friday 28/8/2015 Venue Milne Bay Provincial Administration Meeting Room – Alotau

Attendance 1. Michael Kape District Administrator –MBPA 2. Laino Awalomwai – Lands Officer, MBPA 3. Billy Camillo – Acting Manager - MBPTA 4. Patterson Naua – Airport Safety Officer, Gurney, NAC 5. Hau”ofa Sailasa – Acting Manager, Works Unit 6. John Duguman - Safeguard Consultant, ADB 7. Barksy Panka Safeguard Officer, CADIP, NAC

Points from the Discussions notes have not been recorded on the file however meeting points discussion are listed below. These reflect up to the current status of discussions between the National Airport Corporation and Milne Bay Provincial Administration.

. Discussion between NAC and Milne Bay Provincial Administration (MBPA) began in 2009 when CADIP commenced and this has continued up to 2015 when another consultation meeting was conducted. . The Valuation Investigation and Report noted Portions 245, 221, 339 and 228 totalling 22.83488 hectares were all Agricultural Lease currently leased to Milne Bay Estates (MBE). This also includes the

area of the two block holders. . It was left to the Government of Papua New Guinea to rezone the lease and transfer the lease to aerodrome land. Funding for the oil palms that will be removed is estimated to be K2, 821,000.00. . Grievance Redress Mechanism has been set up with representation from NAC, MBPA, and Lands Office. . MBE insist on being paid money rather than compulsory acquisition although this is now known that the land is Agricultural Lease and this will now be transferred to NAC. . NAC briefed meeting on the MBPA on the progress of CADIP and the preparation of documents that are part of the Periodic Financial Review (PFR) as requested by Asian Development Bank. . Milne Bay is a host province for APEC 2018 and therefore an improved airport will be more strategic for Milne Bay tourism and business opportunities.

III. Disclosure of the Draft and Updated Resettlement Plan

36. Disclosure of information to relevant people and organization and regular consultation during the implementation of RP will be ensured to disseminate project information, anticipated impacts and mitigation measures associated with social safeguards. This RP shall be made available to MBPA, MBE and the APs before the final draft for approval by ADB and NAC. This RP will also be updated to reflect the adjustments on the 2013 Valuer General’s schedule based on existing market prices at the time of payment and outcome of consultation with MBE and block holders. Any updates to the RP will be disclosed to affected persons including all the key stakeholders and submit to ADB for clearance and disclosure on their website.

37. The full RP will be made available in English, the official language in PNG, in accessible public locations. All affected persons will be provided with a summary brochure in Tok Pisin once the ADB approves the RP. This draft will be uploaded to the NAC website (www.nac.com.pg) and will also be uploaded to the ADB website (www.adb.org).

E. Grievance Redress Mechanism

38. NAC has established a grievance redress mechanism to receive and address project related concerns and to resolve land related disputes that may arise during project implementation, as shown in Figure 1. Affected People will be informed by NAC how they can have access to the grievance redress mechanism. Other than disputes relating to land ownership rights under the court of law, most grievances related to resettlement benefits, relocation, and other assistance are expected to be resolved at the PIU level.

39. Affected People can first lodge a project-related complaint with the ward councillor and resolve at the village level. If it cannot be resolved, then it goes to PIU office at the project site. The PIU project manager will consider the complaint and within one week will convey a decision to the APs. The safeguard officer from PIU of CADIP as well as local government officials will assist the project manager in reviewing and addressing the complaint. The safeguard team will also facilitate communication between APs and the PIU in this process. If the APs are not satisfied with the PIU’s decision, they may then take the grievance to the CEO of NAC. The CEO has two weeks to consider the complaint and following this (s) he will either instruct the PIU to rectify the situation or dismiss the complaint. Should APs be not satisfied with the decision of the CEO; they may take the grievance to the PNG judicial system.

40. The Land Disputes Settlement Act (2000) establishes legal procedures for resolution of landownership disputes on customary land. It has a mediation process whereby a designated 14 mediator meets with the disputing parties to resolve grievances. This process is closely allied with the village court system and traditional mediation procedures that draw on the skills of recognized local leaders and elders. The landowner clans or ILGs, if clans are incorporated, are responsible for dealing with disputes between group members or between the clan group and a member, including disputes over entitlement to group membership. External mediators will facilitate resolution in case disputes are between different clans or ILGs.

41. An initial step will be for the PIU in coordination with DLO to facilitate procedures to resolve land disputes based on a process of mediation. As required, the participation of appointed and traditional leaders will be encouraged to achieve satisfactory resolution of issues at the local level. If that fails, procedures as set out in the Land Disputes Settlement Act (2000) will be followed.

42. The Act promotes a process for resolution of land disputes through (i) mediation, followed by (ii) appeal to the designated courts. The mediation process is based on the principles of traditional dispute settlement. The steps in the dispute resolution process include:

43. In the event of grievances that cannot be resolved through mediation, the DPE/NAC and DLO will hold the compensation amounts in escrow. Compensation will be paid in full upon final resolution of the case in the courts or other forum, in accordance with the entitlements of the affected person.

FIGURE 1: GRIEVANCE REDRESS MECHANISM

F. Legal Framework

I. National and Local Laws and ADB Policy Requirements

44. The policy framework and resettlement entitlements are based on the laws and regulations of the GoPNG and the ADB’s safeguard policy. The principal PNG laws include: (i) the 1996 Land Act; and, (ii) the 2000 Land Disputes Settlement Act. Relevant ADB policies include the 2009 Safeguard Policy Statement and Gender and Development Policy and Public Communication Policy 2011.

45. GoPNG does not have any specific policies at the national, provincial or local level for relocating and resettling people. GoPNG has policies related to the acquisition of land and assets by the State for public purposes on an agreement basis or compulsory acquisition basis. This together with customary lands and related legal procedures, compensation payable, and the legally defined procedures for receiving and facilitating the resolution of affected persons’ concerns and grievances are all incorporated in the Land Act of 1996.

46. The Act covers customary land rights, which includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary right holders”; these persons are using known as the leaders of the group who collectively have the authority to allocate use rights through their spokesperson. The other members of these groups or clans typically possesses “secondary rights” because their rights to the land may have been inherited from a primary rights holder through marriage, that is they are either married to a primary right holder or as a child or an adopted child of the primary rights holder . 47. ADB SPS 2009 principles and PNG legal provisions on land acquisition relevant to a project of this nature are summarized and compared in Table 6 below. The table also includes gap filling measures to ensure compliance with SPS for the project.

TABLE 6: COMPARISON OF ADB SPS 2009 AND PNG LAWS ON RP MEASURES

ADB SPS Principles on Land Measures to Compliance with ADB SPS Acquisition/Resettlement Screen the Project early on to identify past, NAC has devoted considerable resources, present, and future involuntary resettlement including the mobilization of its Safeguard Officer impacts and risks. who regularly travels out to Alotau for consultation. He will be intermittently assisted by the ADB Safeguards Officer.

Carry out meaningful consultations with affected This RP addresses this policy principle. As per persons, host communities, and concerned non- the RP several rounds of consultations have governmental organizations. Inform all displaced been facilitated with MBE, MBPA and block persons of their entitlements and resettlement holders. Their ideas on Project design and the options. Ensure their participation in planning, provision of possible job opportunities during the implementation, and monitoring and evaluation of construction period have been taken into resettlement programs. Pay particular attention to consideration by NAC. MBE will lose 1147 oil the needs of vulnerable groups, especially those palm trees while the two block holders and their below the poverty line, the landless, elderly, families will lose four structures and planted women and children, and Indigenous Peoples, improvements. Total land to be acquired from and those without legal title to land, and ensure MBE and block holders is 22. 84 hectares A

their participation in consultations. Establish a grievance redress mechanism has been grievance redress mechanism to receive and prepared by NAC and incorporated in this RP to facilitate resolution of the affected persons’ ensure APs can seek effective redress. concerns.

Improve or at least restore, the livelihoods of all The main issue here related to the prompt displaced persons through (i) land-based payment of the oil palm trees, structures and resettlement strategies when affected livelihoods planted improvements based on existing market are land-based where possible or cash process. NAC has worked very closely with MBE compensation at replacement value for land when and MBPA to ensure the process has been the loss of land does not undermine livelihoods; transparent and fair to all APs. (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation at full replacement cost for assets that cannot be restored; and, (iv) additional revenues and services through benefit sharing schemes where possible.

Provide physically and displaced persons with Not applicable here needed assistance, including the following: (i) secure land use tenure on land identified for new garden sites and (ii) if necessary transitional support and development assistance such as land development, credit facilities, training, or employment opportunities.

Improve the standards of living of the displaced This is not an issue for this Project since no poor poor and other vulnerable groups, including and vulnerable groups will be affected. Affected women, to at least national minimum standards persons will be properly compensated. and provide access to land and other resources that is both legal and affordable. Develop procedures in a transparent, consistent, There are no negotiated settlements yet although and equitable manner if land acquisition is this is being proposed with MBE. Negotiation will through negotiated settlement to ensure that be guided by ADB’s SPS (2009). Third party those people who enter into negotiated verifier will be engaged to confirm that the settlements will maintain the same or better process is done in a transparent, consistent and income and livelihood status. equitable manner.

Ensure that displaced persons without titles to MBE and block holders in the land portions have land or any recognizable legal rights to land are recognizable legal rights such as agriculture eligible for resettlement assistance and lease holders and the GoPNG through NAC will compensation of loss of non-land assets. compensate them for the loss of assets and state-lease land if required.

Prepare a draft resettlement plan and disclose a This will be complied with by NAC as per this RP. resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. This has been complied with as per this Draft RP.

Pay compensation and provide other resettlement This will be complied with by NAC as per this RP entitlements before physical or economic displacement and implement the resettlement plan under close supervision throughout project implementation.

Monitor and assess resettlement outcomes, their Relevant outcomes as per the RP will be impacts on the standards of living of displaced monitored by NAC and APs have the right to persons, and whether the objectives of the mobilize independent monitors to be paid by

resettlement plan have been achieved by taking NAC if there are major disputes vis-à-vis land into account the baseline conditions and the acquisition process outcomes. results of resettlement monitoring and disclose these monitoring results. Yes, this will be adhered to

48. The ADB’s 2009 SPS also states that where there are indigenous peoples their identity, dignity, human rights, livelihood systems, and cultural uniqueness must be safeguarded so they can receive culturally appropriate social and economic benefits. There are no distinct groups in the project area and among the affected persons as per the definition of ADB’s SPS (2009).

49. The other policy of relevance to this Project is the ADB’s 2003 Policy on Gender and Development, which requires that all ADB financed projects ensure where possible and practicable build special design features and strategies into projects to facilitate and encourage women’s involvement and ensure tangible benefits for women. The provision of an airport market will greatly increase women’s involvement in selling goods to tourists and the travelling public.

50. There are some gaps between GoPNG policies and procedures and those of the ADB. The main gaps relate to (i) carrying out meaningful consultations that also ensure people living below the poverty line, the landless, elderly, women and children are consulted; (ii) requirement to improve or at least restore livelihoods of all displaced persons by ensuring the full replacement costs for assets lost is paid; (iii) provision of economically displaced persons with necessary assistance to improve upon or restore their existing livelihoods at least to national minimum standards of living; (iv) ensuring that displaced persons without recognizable rights to land are eligible for compensation for loss of non-land assets; and, (v) monitoring and assessment of resettlement outcomes.

TABLE 7: COMPARISON OF GOPNG LAW AND ADB POLICY AND GAP-FILLING MEASURES

ADB SPS Requirements PNG Laws on Equivalence or Gap-filling on Involuntary RP Gaps between Measures Resettlement ADB SPS and PNG Laws Avoid involuntary The National Constitution No explicit The RP includes resettlement wherever (NC) National Goal 5(4) reference to the measures on possible. Minimize calls for ‘traditional need for avoiding/minimizing involuntary resettlement by villages and communities avoidance or land acquisition. exploring project and to remain as viable units minimizing design alternatives. of Papua New Guinean resettlement society’. Section 53 impacts. protects citizens from ‘unjust deprivation of property’ by limiting the justification for compulsory acquisition by the State.

Enhance, or at least General principles of PNG Laws do The RP include restore, the livelihoods of all compensation for damage not prescribe measures on displaced persons in real or destruction of physical measures of compensation at terms relative to pre-project and economic assets are replacement replacement cost for levels. Improve the set out in NC s.53, Land cost or affected assets and standards of living of the Act (LA) s.23. restore/improve to restore/improve displaced poor and other standard of living standard of vulnerable groups. living. APs.

Screen the project early on RP sets out the process No specific The RP includes to identify past, present, for Land Investigation requirements for measures on

and future involuntary Report which includes census, cut-off survey/census, cut- resettlement impacts and identification of affected date, impact off-date, assessment risks. Determine the scope clans/tribes and their assessment and of impacts and of resettlement planning assets. resettlement resettlement through a survey and/or planning. planning. census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. Carry out meaningful NC National Goal 2(9) No specific The RP includes consultations with APs, calls for every citizen to provisions measures on host communities, and be able to participate, for preparing consultations with concerned NGOs. Inform all either directly or through a and APs, including displaced persons of their representative, in the implementing vulnerable groups, entitlements and consideration of any RP based on during preparation resettlement options. matter affecting his meaningful and implementation Ensure their participation in interests or the interests consultations of RP. Document planning, implementation, of his community. with APs, includes specific and monitoring and including the consultation, evaluation of resettlement poor, the information and programmes. Pay particular landless, participation attention to the needs of elderly, women, measures. vulnerable groups, and other especially those below the vulnerable poverty line, the landless, groups the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations.

Establish a grievance Land Disputes Settlement No The RP includes redress mechanism to Act provides for measures requirements for measures on project- receive and facilitate on resolution of disputes a project- specific grievance resolution of the affected and grievances through specific redress mechanism. persons’ concerns. Support both local mediation as grievance the social and cultural well as court process. redress institutions of displaced mechanism. persons and their host population. Where No specific The Program is not involuntary resettlement requirement for expected to involve impacts and risks are highly a social highly complex and complex and sensitive, preparation sensitive projects, so compensation and phase for highly it is not needed to resettlement decisions complex and have a separate should be preceded by a sensitive phase. social preparation phase. projects.

Improve, or at least restore, Principles of No specific The RP includes the livelihoods of all compensation set out in requirement for measures of on-site displaced persons through NC s.53, LA land-based relocation/replaceme (i) land-based resettlement s.23. resettlement, nt of affected strategies when affected replacement of structures, livelihoods are land based assets, and compensation at where possible or cash compensation at replacement cost for compensation at replacement affected assets on replacement value for land cost, and benefit additional land and when the loss of land does sharing. priority of project not undermine livelihoods, employment to APs. (ii) prompt replacement of

assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

Provide physically and PNG allow people eligible PNG laws have The RP includes economically displaced for compensation to no specific measures on-site persons with needed receive their entitlements provisions on relocation of affected assistance, including the in cash. relocation, structures to the following: (i) if there is transitional adjoining land relocation, secured tenure support and civil to relocation land, better infrastructure housing at resettlement and services. sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

Improve the standards of NC and LA include PNG Laws do No specific living of the displaced poor general principles of not prescribe measures are and other vulnerable compensation for measures on required for this groups, including women, damages or losses. improvement of Project as the to at least national living standard impacts on APs minimum standards. In rural and restoration livelihoods are very areas provide them with of livelihoods. minimal. legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

Develop procedures in a NC National Goal 2(9) PNG Laws do The RP describes transparent, consistent, and calls for ‘every citizen to not specifically procedures for the equitable manner if land be able to participate, require third- negotiation on use of acquisition is through either directly or through a party verification additional land with negotiated settlement to representative, in the of negotiated landowner groups ensure that those people consideration of any agreement. through memoranda who enter into negotiated matter affecting his of agreements settlements will maintain interests or the interests (MOAs) to be verified the same or better income of his community’. by a third-party. The and livelihood status. MOA’s will be signed

LA sets out procedures with respective for outright purchase or landowner groups. lease.

The Land Group Incorporation Act and Voluntary Customary Land Registration Act enable incorporation of land groups and to register titles to customary land. These laws allow negotiated lease or transfer of such land.

The Fairness of Transaction Act sets out rules on fairness of transactions.

Ensure that displaced LA s.13-15 provides some PNG Laws do The entitlement persons without titles to entitlement to not provide matrix for the project land or any recognizable compensation to any entitlement to provides for legal rights to land are people with ‘an interest’ in non-titleholders resettlement eligible for resettlement land over which the State who do not have assistance and assistance and exercises its power of legal interest on compensation for compensation for loss of no compulsory acquisition. land. non-land assets to land assets non-titled APs without legal interest.

Prepare a resettlement plan NC National Goal 2(3) PNG Laws have The RP has been elaborating on displaced calls for ‘every effort to be no provision of prepared in persons’ entitlements, the made to achieve an preparing RP. accordance with income and livelihood equitable distribution of ADB SPS restoration strategy, incomes and other requirements but institutional arrangements, benefits of development there is no physical monitoring and reporting among individuals and displacement nor are framework, budget, and throughout the various severely impacted time-bound implementation parts of the country’. APs and hence schedule. physical resettlement and income and livelihood restoration not relevant.

Disclose a draft NC National Goal 2(9) No specific The RP includes resettlement plan, including calls for ‘every citizen to requirements on disclosure measures, documentation of the be able to participate, disclosures. including posting on consultation process in a either directly or through a NAC and ADB timely manner, before representative, in the websites and clan project appraisal, in an consideration of any leaders/APs have accessible place and a form matter affecting his been provided with and language(s) interests or the interests the summary RP and understandable to affected of his community’. information persons and other brochures also in stakeholders. Disclose the their local language. . final resettlement plan and its updates to affected persons and other stakeholders.

Conceive and execute No equivalent provision Gap. Land acquisition

involuntary resettlement as costs will be included part of a development and financed out of project or programme. the project cost. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

Pay compensation and No equivalent provision Gap. The RP includes provide other resettlement measures on entitlements before physical payment of or economic displacement. compensation for Implement the resettlement affected assets plan under close before start of civil supervision throughout works on affected project implementation. land. It also includes an implementation schedule.

Monitor and assess No equivalent provision Gap. The RP includes resettlement outcomes, monitoring their impacts on the measures, including standards of living of requirements of displaced persons, and semi-annual whether the objectives of safeguard monitoring the resettlement plan have report by EA and if been achieved by taking necessary third party into account the baseline monitoring. conditions and the results of resettlement monitoring. Disclose monitoring reports.

II. Resettlement Policy Principles for the Project

51. NAC as the EA that has prepared this RP unequivocally states that it will abide by national and local laws applicable to resettlement and the policy requirements of the ADB. Specifically, NAC states that it will ensure affected landowners will be paid fair compensation for land and other productive assets acquired at full replacement cost, be responsive to grievance processes and act in an accountable and transparent manner, and will ensure that women will also be entitled to benefit during the resettlement processes. The principles on land acquisition, compensation and resettlement that NAC will commit itself to in the Gurney Airport Project include:

I. Land acquisition and resettlement will be optimised through careful engineering design. In particular, there will be very little or no displacement of people. Restrict clearing to survey designed footprint in the land positions. II. APs will be consulted during project cycle. RP will be prepared and updated in participation of APs. Effective mechanisms will be established for hearing and resolving grievances. III. APs will receive compensation at updated calculated existing market rates for their loss of assets so that they will be as well-off without the project.

IV. All compensations will be fully paid to APs prior to the beginning of civil works in the project site. V. Absence of formal title will not be a bar to compensation and assistance and particular attention will be paid to vulnerable groups. VI. Land acquisition and resettlement will be conceived as part of the project and costs related to resettlement will be included in and financed out of the project cost. VII. The impacts of the project including unforeseen losses and damages that may occur during civil works will be carefully monitored and remedial steps taken as required.

III. Principles and Methodologies for Determining Valuations and Compensation Rates

52. NAC recognizes that affected land-users are entitled to compensation for their land that will be acquired and other improvements that will be lost because of the Project requirements. Valuation is based on schedule 2013 from the valuer general office, DLPP and this will be adjusted by including inflation to ensure the application of existing market prices at the time of payment. The schedule of the calculated cost takes into the account the productivity of economical trees such as the oil palm plants and the cost incurred to grow the plant. The value of the land is based on the usage of the land (land use).

IV. Description of Land Acquisition Process

53. Based on the Land Act 1996, the following procedures will be followed when acquiring the land:

 The first step would be to survey and determine the land. In this case since 2008, it has been known that Milne Bay Estates (MBE) is holding an Agricultural Lease for the Oil Palm Plantation surrounding the airport area and two block holders are holding the same lease title for their two block. For this reason, Civil Aviation Authority (CAA), NAC’s predecessor began negotiations with MBE and block holders to acquire the land for airport development.  The Milne Bay Provincial Administration (MBPA) and their Lands Office were notified of this approach and assisted in checking on the land status. Consultation between NAC, MBPA, nearby landowners and MBE continued from 2010 up to 2011.  General outcome of the meeting with MBE and block holders was in general agreement for the runway extension to proceed following valuation and compensation paid accordingly. They were even notified in advance and in agreement not to plant their oil palm trees at the approach/take-off path for aircrafts flight safety.  In 2011, Defence Force Bomb Unit was engaged to do an unexploded Ordinance clearance scan for the proposed fence line corridor of the existing aerodome land including runway extension area. No bomb remnants found in the proposed runway extension area. Discussions with all parties continued.  In 2013, Valuer General’s Office valued oil palm trees, affected food gardens and structures in the 22.48488 hectares that is the total portion of land that will need to be rezoned back to aerodrome land and issued Valuation Certificates.  Discussion centred on Condition Surrender of Agricultural lease by MBE and block holders and the lease regraded or rezoned to Aerodrome land. Feedback from MBPA has been cordial and the process now is for the confirmation of the valuation price between MBE, block holders and NAC for the acquisition of the land. From this, a Memorandum of Understanding (MOU) will be signed between block holders, MBE and NAC for the acquisition and the surrender of the title to NAC. This is planned to be completed within second quarter of 2016. Once the funding is available from the GoPNG within this period then payment proceedings, surrendering of land to NAC,

rezoning and amalgamation of land title into one aerodome portion with a new legal description will follow in the second quarter of this year, 2016.  This is to be followed by funding to be secured and MBE paid by June 2017. Payment to block holders for structures already removed will be prioritized with proposed payment schedule on December 2016. After this is paid, the oil palm trees will be uprooted in MBE portion and transfer of title from MBE and block holders to NAC. Concurrently, documentation for the relinquishing of the agricultural lease and regazettal of the land to aerodrome land to NAC must be completed. The latter process will be through the Minister of Lands and Physical Planning and this may be supported by advice from the National Executive Council (NEC).  This process is then completed with the gazettal notice to be published by the Government Printery and this will take legal effect. Work activates can now commence in the airport extension project.

G. Entitlements, Assistance and Benefits

I. Affected Person’s Entitlements and Eligibility

54. NAC has consulted with the surrounding communities, two block holders and their families and the Milne Bay Estates (MBE), who are the Affected Person (AP) in this project. The required land is an agricultural lease that has been leased by MBE for a 99-year period since 1985.

55. The surrounding community do not have any assets that will be affected as they are on the periphery of the project area hence have only been consulted and notified of where the project will be carried alongside their area.

56. The Valuation Report and Valuation Certificates by the Valuer Generals Office and another Valuation on the 13th February 2013 that were submitted to NAC is the “cut-off” dates for eligibility for compensation and any rehabilitation assistance.

57. Block holders composed of four affected households besides MBE is eligible for compensation. MBE will be paid for the 1147 medium oil palm trees and unimproved land while block holders with affected structures and unimproved and planted improvements will be paid immediately or until the end of 2016.

58. Eligibility and entitlement for compensation and other assistance for the APs under this project is summarized in the Entitlement Matrix (table 8). However, Annex 1 is the complete entitlement matrix as per ADBs SPS 2009.

TABLE 8: PROJECT ENTITLEMENTS MATRIX FOR AFFECTED PERSONS

Type of Impact Entitled Person (s) Entitlements Permanent acquisition of Milne Bay Estates and MBE and the block holders will be land Block holders monetarily compensated for loss of productive land and CADIP shall finance development of land outside the easement for cultivation and other commercial crops as well

income for a period until new crops or trees produce an equivalent income.

Unforeseen or unintended Concerned affected These will be determined as per the impacts persons principles of this RP and ADB’s Safeguard Policy.

II. Assistance to Vulnerable Groups

59. There are no vulnerable groups that will require assistance as defined in ADBs SPS 2009. The affected people’s household income indicates that they are considerable above the poverty line and can sustain their livelihood. However, to add income to the APs household, the successful contractor must undertake to employ at least one member from the families of the block holders on construction-related activities on a full-time basis. This will be a requirement in the bidding documents that will be prepared for this Contract Package. The APs in this case is the two block holders and two other family members (18 persons).

III. Opportunities for Affected Persons to Derive Appropriate Development Benefits

60. There are a number of quantifiable and non-quantifiable development benefits for APs. MBE is the principal AP however it employs workers in the oil palm plantation and mill areas and as such those persons will not be available for possible employment. The APs of the two block holders including the surrounding airport communities have expressed their willingness to participate in employment opportunities. Benefits include:

 Employment opportunities: community members or the affected persons engaged by the contractors could receive a stable waged income over 18 months. This could be an opportunity for community members or affected persons to acquire some non- agricultural skills without having to leave the local community.  Equal opportunities for Women: Women will be offered the same types of employment-based opportunities as men. They will also be able to actively participate alongside men in other land acquisition-based activities. Such involvement of women could indirectly impact upon the structures of male domination in traditional PNG society.  Social risks associated with HIV and AIDS and other STIs will be mitigated to a large extent by employing as many local people on project construction activities. People will also benefit from the training and awareness on protecting themselves from HIV and AIDS that NAC will carry out in the area.  There will be opportunities to earn money from providing a range of goods and services to outside project construction workers.  The long term benefit of the project is that the people will have access to enhanced air transport connectivity, hence their ability to have improved market links and access to a wider range of goods and services.

H. Relocation of Physical Structures

61. Four structures (semidetached house and three bush material houses have already been shifted to other portion of their lands away from the project area. Cash compensation will be provided at full replacement cost based on current market prices and shifting allowance.

I. Income Restoration and Rehabilitation

62. Apart from their section of land that will be acquired from the block holders, they still have a large land area for cultivation of food cash crops and gardens; and planting of more oil palm trees. The acquisition will not significantly affect their livelihood.

I. Income Restoration Program

63. There are no APs requiring income restoration. MBE as the main AP will be compensated fairly for the loss of 1147 medium oil palm trees. There is no income restoration as MBE has 6,000 hectares and the loss of 1147 oil palm trees represents 0.35% of its total assets and MBE continues to seek additional land to expand its operations. As indicated in the sources of income of the block holders, there are other means of maintaining and sustaining their household income. Their main oil palm block will not be affected under the project but only the portion with food gardens. They will be advised to plant more palm oil or invest in livestock (poultry and pig raising) to sustain their household income. This is expected to improve their income and livelihood over the years.

II. Special Measures to Support Vulnerable Groups

64. Women during consultations want to ensure that their safety and security are not compromised any more than they are at present, although all women who were at the consultations meetings were not vocal about it. There is the probability of an influx of outside labour which could pose threat to their safety and security than exist at present from clan and non-clan males. The RP EMP contains measures to mitigate such social risks.

III. Specific Gender Considerations

65. NAC recognizes that specific gender considerations apply to airport projects it executes and manages. The measures proposed in this RP to is to enhance the positive impact of the Project on women APs and other women living in the Project area are as follows:

 Iterative consultations with women at all stages of the Project cycle and importantly in the preparation of the RP.  Facilitating processes whereby women APs can lodge grievances with NAC and ultimately ADB if they are dissatisfied with any aspects of the RP.  Ensuring that women within the surrounding community are offered priority wage employment on the Project and are afforded equal pay and on-the-job training opportunities.  Ensuring that socio-economic data is gender disaggregated to analyse impacts at the intra-household and inter-household level where applicable, although this is very unlikely.

IV. Suggested Training Programs

66. Surrounding community persons that may be offered priority employment on the Project will be provided with on-the-job training. Such training will include but not be restricted to activities such as concreting, welding, and stringing TL cables taking into account occupational health and safety issues and the lack of real experience by most surrounding communities, especially women. The contractor will also be required to offer practical training in the runway extension works.

J. Resettlement Budget and Financing Plan

67. The resettlement budget for land acquisition and implementation is in Table 9. It is predominantly the replacement costs for 1147 palm oil trees that will be cleared as they are in the runway areas and its proximities. An MoU will be finalized between MBE and the provincial government although in principle MBE has no objection to surrender their lease title for the airport development in exchange for compensation based on the valuation. The block holders will also be compensated for their loss assets.

TABLE 9: ESTIMATED LAND ACQUISITION BUDGET

Contingency PNGK1,837,192.80 Administration and Monitoring of Land Acquisition PNGK63,000.00 Total land acquisition budget PNGK 8,840,000

68. Once funding is made available through the GoPNG for compensation, the APs and MBE will be notified and payments made directly to them in the form of cheque payment. The costing stated in Table 9 above fully covers the replacement costs for the oil palm trees and food gardens that will removed to make way for the runway extension and aircraft approach.

69. Compensation rates for the oil palm trees, structures and planted improvements are based on the Valuer Generals Valuation that was done in 2013. There is no updated version of the Valuation Schedule 2013 from the Valuer Generals Office of DLPP and so adjustments based on inflation rate will be made to ensure the use of existing market prices by the time the payment is made. The project set aside a contingency for anticipated adjustments on compensation.

I. Sources of Financing

70. GoPNG is financially responsible for payments of necessary compensation related to land acquisition. MBE and block holders will be paid for crop and structures. The safeguard officer will oversee the payment of the crop and structures and will be liaising with Milne Bay Estate on a quarterly basis when the project starts and specific daily issues will be captured by the NAC Safety Officer on Gurney. This will constitute the RP monitoring program.

K. Institutional Arrangements

I. Responsibilities and Mechanisms for Carrying out Resettlement Plan

71. NAC will be both the Executing and Implementing Agency for this Project. The Safeguard Officer from NAC has been assigned within the PIU based in Port Moresby to implement the RP. This Safeguards Officer will be supported on a day-to-day basis by the NAC in Milne Bay to oversee the daily activities related to land acquisition and loss of other productive activities. It is the intention of NAC that the Safeguard Officer will be assigned to the Project area if and when required to implement and monitor the RP. Safeguard activities have included to date:

 Collaboration with and assistance to the District Land Officer to undertake their work to comply the Project’s policies and ADB requirements.  Provision of resources, including where necessary NAC expertise or contracted expertise, to carry out the land investigation and valuation of the crop and structures and land by the Valuer Generals Office.  Collaboration with and assistance to the Provincial Land Officer and/or District Land Officer for negotiations and agreements with Milne Bay Estate.  Facilitation of consultations with Milne Bay Estate and surrounding communities and ensuring that all stakeholders are informed about the Project, its policies and procedures; ensure that all requirements concerning public disclosure of the provisions for land acquisition and compensation; and, overseeing and monitoring the grievance redress process.  Reviewing and endorsing the draft RP prior to submission to the ADB for approval, ensuring that all matters related to land acquisition and other forms of compensation are complete and correctly reported upon.

72. Other NAC roles include:

 Monitoring the process of allocation and disbursal of funds for compensation at both the national and provincial levels and ensure that funds are available and oil palm replacement and other compensation is paid in a timely manner.  Undertake all other activities including the monitoring of land acquisition and other productive assets’ activities.

73. MBPA, including the PLO and DLO will collaborate with NAC to plan, implement, and monitor land acquisition activities. The responsibilities include:

 Undertake cadastral surveys of land required permanently for the Project. Negotiate and sign a Memorandum of Agreement for the relinquishing of agriculture lease from Milne Bay Estates to NAC. They are responsible to ensure that the Milne Bay Estate are in agreement with NAC on the replacement costs for the oil palm trees  Consult with and advise surrounding communities about the Project, the policies and procedures when land is required and the rights and responsibilities of directly affected people and other indirectly affected people.

74. Local Level Government Ward Councillors will facilitate all consultations with local communities and other stakeholders. They will be responsible for collaborating with NAC to organize and carry out these consultations.

II. Institutional Capacity Building Program

75. During the PPTA it was concluded by NAC in Port Moresby that its staff who would be involved in implementing this RP require more training in the ADB’s social safeguard policies and procedures because this Project will be the first one with land acquisition and resettlement to be implemented by NAC under CADIP. RP The project will provide consultancy support via International Social Safeguards Specialist to roll out necessary trainings and support to build safeguards implementation and monitoring capacity within NAC.

III. Role of Civil Society Groups

76. While there are some civil society groups in the Project area, they are not eligible for RP purpose. However, there are at least two Port Moresby based NGO groups - Centre for Environment, Law and Community Rights (CELCOR) and Environment Law Centre (ELC) - that are non-sectarian in nature and have a good understanding of both gender and indigenous people’s development issues and are better able to work more effectively with local communities than other NGOs: they are also more cost effective. This NGO however will need to be checked out by NAC to ensure that they are an appropriate organization for us to work with. NAC intends to undertake the monitoring itself but if APs feel NAC is less than diligent the latter will invite one of these NGOs or if a similar NGO can be found in Milne Bay Province to undertake subsequent monitoring.

77. Civil Society Organization (CSO) and Non-Government Organization (NGO) will be engaged by NAC and the contractor to carry out awareness on HIV/AIDs and sexually transmitted diseases during construction. They will also be involved in awareness for communicable diseases to the surrounding town communities. NAC will also continue existing collaboration with CSO, NGOs to talk to mothers in regards to the utilization of the mini market to be established and NAC and CSOs will carry out awareness to the general public on Airport Safety Regulations.

IV. Involvement of Women’s Groups in Resettlement Planning and Management

78. NAC will ensure that women will not be disadvantaged during the implementation of RP particularly ensuring that women will be paid equally to men APs and will have equal access to employment opportunity from the project.

L. Implementation Schedule

79. The implementation schedule for land acquisition activities to (i) update the RP; (ii) implement the RP; and, (iii) monitoring activities is as shown below. This also includes necessary actions to facilitate payment to block holders for their structures and crops that they removed in anticipation of the project.

TABLE 10: IMPLEMENTATION SCHEDULE

S. N ACTIVITIES SCHEDULE Update of Resettlement Plan 2016 1 Confirmation of legally binding Memorandum of Understanding Pending (MOU) with MBE and NAC (an initial MOA already signed during PPTA) 2 Confirm land requirements based on engineering design Completed 3 Complete determination of land ownership from Department of Land Completed and Physical Planning

4 Follow up consultation with surrounding communities and agreement Completed on land acquisition/rezoning 5 Follow up on Valuer General to conduct valuation of land and Completed improvements 6 Ask Valuer General for Valuation Certificate for land and Completed improvements 7 Submission to Department of Provincial Affairs and Local Level Ongoing Government (DPALLG) for certificate of relinquishment of agricultural lease from MBE to the State and then to be rezoned into NAC be signed by Secretary 8 Valuer General verifies the land valuation Completed 9 NAC finalize draft RP in consultation with Milne Bay Estate including On going agreement on crop and structures payment and updated RP to them 10 NAC submits the RP to ADB for approval and posting on ADB Mid-April 2016 website 11 ADB no-objection to RP M id-April 2016 12. Update RP to reflect the existing market prices at the time of payment March 2017 ADB no-objection to updated RP 13. March 2017 14 NAC issues cheques for execution of crop and improvements April 1, 2017 compensation 15 DPAL LG completes relinquishing instruments and rezoning to June 16, 2016 aerodrome land 16 NAC to arrange for instruments to be gazetted in the Government Ju ly 30, 2016 gazette

Resettlement Plan Implementation

17 NAC submits to ADB the land acquisition completion report May 2017 18 Award of civil works contract Ju ne 2017 19 Clearance of acquired land July 2017 20 Start of civil works (only after crop and structures compensation) Aug 2017

Monitoring Plan

21 NAC establishes AP socio-economic baseline Completed 22 NAC submits progress report to ADB on implementation of RP Six Monthly 23 NA C conducts post rezoning survey and final monitoring report Sept 2017

Necessary Actions to Facilitate immediate payment to block holders

Follow-up consultations regarding the following: (i) confirmation of 14 April 2016 removed assets; and (ii) proposed payment schedule Proposed payment schedule subject to agreement by the block Dec 2016 holders with adjustments made based on inflation rate

Submission of compensation completion report to ADB 15 March 2017

M. Monitoring and Reporting

80. NAC will monitor all activities associated with crop and structures compensation payment to APs. The scope of monitoring includes: (i) compliance with the agreed policies and procedures for land acquisition; (ii) prompt approval, allocation and disbursement of compensation payments to APs, including if necessary supplemental compensation for additional and/or unforeseen losses; and, (iii) remedial actions, as required. The monitoring will also cover the social impacts of the project and whether APs are able to restore, and preferably improve, their pre-project living standards, incomes, and productive capacity. A

monitoring and evaluation program utilizing the following indicators has been finalized on the understanding it can be subject to change, including suggestions by APs of what they consider of more relevant to their livelihoods than are considered relevant by other stakeholders. The final monitoring and evaluation indicators are as follows:

TABLE11: FINAL MONITORING AND EVALUATION INDICATORS

Type of Indicator Indicator Examples of Variables Staffing . No of PIU staff by job function . Engagement of Safeguards Staff and training Consultation, Participation, . No of other agency officials available for Process and Grievance Resolution tasks Indicators . No of consultation and participation programs held with various stakeholders Procedures in Operation . No of field visits by PIU Staff . No of civil society groups participating in Project . Effectiveness of compensation/assistance delivery system . Coordination between PIU and GoPNG agencies, project supervision consultants, and civil society groups

Households . No of households affected Structures . No of households receiving agreed Output Economic Trees and compensation for trees and crop and Indicators Crops structures . No of special assistance programs to Assistance to APs vulnerable households (if required)

. Employment status of households being Household Earning self-employed under the Project Impact Capacity . No of households receiving income Indicators enhancement skills training . Number of women engaged as waged workers by the Project . Type of Project-related skills women Special Assistance to received such as trainings in baking, Women cooking, catering and producing cash crops and beans among others. . Equal wage of women employed on Project compared to that of men . Increase in market-based incomes of women traders Other Livelihood Indicators

81. NAC will prepare and submit semi-annual monitoring reports to ADB as part of project performance monitoring. NAC will also submit a project land acquisition completion report to ADB when compensation has been paid.

82. NAC is committed to ensuring best practices in accountability and transparency during the implementation of this Project. Any grievance will be addressed through the GRM process with the Provincial Government being the central GRM monitoring agency.

ANNEXURE

Annex I: Entitlement Matrix

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues Affected Land Temporary Customary Use of the land will be acquired Compensation The agreement use of land land: through negotiated lease with (in form of land to use Land users landowners. lease) for use of customary land as Cash compensation at replacement land. whether recognized cost will be paid for any damaged Compensation temporarily or by clan crops, fences or other structures for damaged permanently will leaders located on project-affected land. crops, trees, be negotiated based on the In the case of construction camps, fences or other following the civil works contractor will structures. conditions: negotiate directly with the landowner to reach agreement a) landowners regarding the payment of royalties. agree to and support the State- No compensation will be paid for Compensation upgrading and owned use of the land. for damaged rehabilitation of land: Cash compensation at replacement crops, trees, the airport; fences or other Encroache cost will be paid for any damaged b) landowners structures. rs or crops, trees, fences or other are consulted squatters’ structures on project-affected land. and make settlement The users/occupants will remove informed s from the land at their own expense, decisions as per the Land Law. regarding agreements to Permanent Customary Use of the land will be acquired Compensation use land; and use of land land: through a negotiated Memorandum for value of c) they (including Land users of Agreement with landowners. affected land. guarantee on garden and as Cash compensation at replacement Compensation behalf of all clan residential recognized cost will be paid for any damaged for damaged members that land) by clan crops, fences or other structures on crops, trees, they will not leaders project-affected land (see below). fences or other disrupt the structures. project in other State- No compensation will be paid for Compensation ways. owned use of the land. for damaged land: Cash compensation at replacement crops, trees, Users or cost will be paid for any damaged fences or other occupants crops, trees, fences or other structures. structures on project-affected land (see below). The users/occupants will remove from the land at their own expense, as per the Land Law. Affected Assets Annual Owners of Compensation for loss of or Compensation All crops the crops damage to annual crops on project- for damage to or compensation affected land as follows: loss of standing rates and a) APs given notice to harvest crops to ensure amounts will be crops before clearance or removal income verified and from required land; OR, if APs are restoration. approved by the not able to harvest office of the

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues b) cash compensation calculated Valuer General. according to the Valuer General’s All Compensation Schedule; AND as compensation required assessed prior c) an additional grant to ensure to damage or replacement cost as per local removal shall be market prices. paid in full prior to the beginning Perennial Owners of Compensation for losses or Compensation of civil works. crops and crops and damages as follows: for damage to or If further trees, trees a) APs given notice to harvest loss of perennial damage or loss including crops before clearance or removal crops and trees occurs during coffee from required land; AND, to ensure shade and income civil works, b) cash compensation for lost plant timber restoration. CADIP PIU will or tree calculated according to the trees carry out Valuer General’s Compensation supplementary Schedule; where required project assessments will pay an additional grant to and take steps ensure that APs are able to buy to get approvals new plants or trees of equal or for and payment better quality; AND, of additional c) in the case of perennial crops compensation to and trees, a grant equal to the lost which APs are income for the period of time until entitled as new plants or trees produce a yield rapidly as similar to the lost plants/trees; OR possible. d) compensation will cover the loss of All income for the crop over the land’s compensation productive period. This will be shall be paid to calculated in terms of income for the the owners of land’s productive period projected over the affected a number of years. assets. If, for e) in the case of timber trees, APs example, will be permitted to harvest trees women’s and sell the timber. gardens are affected, the compensation will be paid to the affected women. Allowances Shifting Owners of A shifting allowance equal to the Restoration of The allowances back of structures provincial minimum wage a livelihood / for shifting semi- maximum period of two weeks to economic structures and permanent compensate for lost business activities. loss of business and revenues while shifting the income are temporary structure to a location outside the based on structures area designated for the road. information provided by Disruption Owners of A disruption allowance equal to the Restoration of local informants of business trade provincial minimum wage for the livelihood / about the likely activities stores and number of days that business is economic time required, due to civil other disrupted due to lack of access or activities. e.g., to shift a works roadside other consequences of civil works. structure and businesses the loss of , including income. airport

CADIP Entitlement Matrix Type of Entitled Expected Implementation Entitlements Impact Person Results Issues market and At the time that handicraft the shifting vendors allowance is paid, the trade Relocation Owners of A moving allowance to cover the Restoration of store owner will of structures conditions. costs of moving personal sign an permanent possessions, paid in cash or in kind agreement with structures (e.g., provision of transport). CADIP PIU Vulnerable APs that Additional cash grant to head of AP Poverty regarding the APs are female household. The value of the cash reduction date of removal household grant will be calculated based on measure and from the land heads, the provincial minimum wage as development required for handicapp established by the Minimum Wage upgrading the ed and/or Board for a period equal to number Airport facilities. elderly, as of days that livelihood is disrupted determined during social surveys Airport- APs Priority for paid work for civil works Poverty affected including and/or ongoing maintenance for reduction persons vulnerable airport road, assuming measure and APs qualifications to do the work. development

Annex 2:

Annex 3: Other References on Consultations

Photo 1: Consultation with the Milnebay Provincial Administration during the Periodic Financial Request safeguards consultation & awareness, Gurney Airport Upgrade, Tranche 3, Alotau, Milne Bay Province.

Photo 2: Consultation and Project awareness to vendor at airport side market stalls, Gurney, Miline

Bay Province

Photo 3: Consultation with the block holders and the airport nearby communities, NAC Office, Gurney Airport, Milne Bay Province

Annex 4: Consultation Letter to MPA

3. Kavieng Airport Resettlement Plan.

Executive Summary

1. The Kavieng Airport Runway Extension & Associated Works project is under Batch 3 of the Civil Aviation Development and Investment Program (CADIP), funded by the Asian Development Bank (ADB) and co-funded by the Government of Papua New Guinea (GoPNG). The Executing Agency of the program is the National Airports Corporation (NAC). The project will extend the runway for additional 406 metres increasing it to 1900m and which will allow for F100 and related aircrafts. The existing access road running parallel to the airport will provide the main entrance for the project area for associated works to be undertaken. The project in New Ireland Province is expected to increase air transport and business opportunities in Kavieng including other provinces in PNG.

2. About 52.567 hectares (Ha) of customary-owned land shall be acquired for the proposed works. The area is basically covered with sparse areas of savannah forest, few coconut and cocoa and garden and fruit trees although 5houses (1 permanent, 3 semi- permanent, and 1 bush material houses) affecting 11 persons will have to be removed. The households will be relocated to an agreed and designated area that they themselves are also the customary owners. Land Investigation Reports (LIR) carried out by the Department of Lands and Physical Planning (DLPP) in 2009 and 2011counted a total of 511 affected persons (APs) who are the landowners of the land to be acquired. They belong to ten clans and registered Maiom village as their home village. However, only 11 of them are residing in the village particularly along the periphery of the proposed land to be acquired. Each of the customary land area and the total area owned by the clans are listed in Table 1 below.

TABLE 1: CLAND AND LAND DETAILS FOR LAND ACQUISTION

Customary Land Area Clan Name Portion Planted Unimproved Total (Ha) Improvement Land Land Value (PNGK Value Value (PNGK) (PNGK) Kalapok* 21.71 Makanuk No1/Tivinlua 1049C 33,010.50 1,796,800.00 1,829,810.50 Panamak* 7.540 Makanuk No2 1049C 1,070.00 678,600.00 679,670.00 Panavul* 6.480 Malip 1049C 30,265.10 583,200.00 613,465.10 Panagumi* 3.905 Tivingau/Panavul 1160C 3,654.00 365,400.00 369,054.00 Kulagavus* 2.990 Makanuk 1160C 4,547.00 300,700.00 305,247.00 Lovulit* 2.680 Makanuk/Matanasoi 1160C 4,229.00 270,100.00 274,329.00 Lisuak* 1.240 Tivingau/Livagai 1160C 18,111.00 160,000.00 178,111.00 Vuvut/Panaguis 1.860 Tivingau/Mar 1160C 12,310.00 160,000.00 172,310.00 Lokau* 0.970 Peni Family Group 1160C 3,531.50 160,000.00 163,531.50 Panatovo* 3.180 Tivingau/Panavego 1160C 5,621.00 310,400.00 316,021.00

Total 52.555 116,349.10 4,785,200.00 4,901,549.10

3. The ten clans speak the Tigak language which extends its boundary to parts of Djaul Island and covers the islands before New Hannover. New Ireland province has 23 languages1or dialects spread across the islands and mainland. With intermarriages, children can enjoy a set of languages, cultures and customs.

4. The 11 APs currently residing along the periphery of the proposed runway extension area have a few coconuts, cocoa and fruit trees such as pau (Barringtonia eduli) betel nut (Areca catechu), guava with garden patches and most of the land is covered by lowland rain forest. The handful of APs grows garden crops with fruit trees such as pawpaw, guava and mango. These provide subsistence to them although they do not use that for daily support. A

1http://www-01.sil.org/pacific/png/show_lang.asp?list=NI&by=province. Accessed 30 1 16. number of the APs are employed with the New Ireland Provincial Administration and earn wages to support their families. 5. The acquisition of customary land is not expected to impact the livelihoods and income of APs. There are no APs that will lose more than 10% of their productive assets. Those APs that will lose small portions of their customary lands have other land available to them in close proximity of their customary land for food production purposes.

6. APs have been consulted during feasibility and preparation of the Land Investigation Survey in 2009 and 2011.The New Ireland Provincial Administration (NIPA) together with NAC has undertaken further consultation with affected communities in coordination with land administration authorities to provide input for this RP. The clan leaders of customary landowners have expressed their support to the project by willingness to allow the use of their land through outright purchase by the GoPNG. The eligibility and entitlements required for land acquisition is summarised in Table below.

TABLE 2: SUMMARY OF ELIGIBILITY OF AFFECTED PERSON UNDER THIS PROJECT

Type of Entitled Expected Implementation Entitlements Impact Person Results Issues Affected Land Permanent Customary Replacement land or cash Replacement use of land land: compensation at land or cash (including Land owners replacement cost will be compensation garden and as recognized provided for affected land. for value of residential by clan affected land. land) leaders Cash compensation at replacement cost will be Compensation paid for any damaged crops, for damaged fences or other structures on crops, trees, project-affected land (see fences or other below). structures. State-owned No compensation will be Compensation land: paid for use of the land. for damaged Users or Cash compensation at crops, trees, occupants replacement cost will be fences or other paid for any damaged crops, structures. trees, fences or other structures on project- affected land (see below).

Affected Assets Annual Owners of the Compensation for loss of or Compensation NAC will engage a crops crops damage to annual crops on for damage to valuation specialist to project-affected land as or loss of determine follows: standing crops compensation rates a) APs given notice to to ensure at replacement cost harvest crops before income based on market clearance or removal from restoration. prices. required land; OR, if APs are not able to harvest All compensation b) Cash compensation at rates and amounts replacement cost based on will be verified and market prices. approved by the office of the Valuer Perennial Owners of Compensation for losses or Compensation

Type of Entitled Expected Implementation Entitlements Impact Person Results Issues crops and crops and damages as follows: for damage to General. Trees trees a) APs given notice to or loss of perennial crops harvest crops before All compensation and trees to clearance or removal from assessed prior to ensure income required land; damage or removal restoration. b) cash compensation for shall be paid in full lost plant or tree calculated prior to the beginning at replacement cost based of civil works. on market prices If further damage or c) in the case of perennial loss occurs during crops and trees, the civil works, CADIP valuation will also take into PIU will carry out account the lost income for supplementary the period of time until new assessments and plants or trees produce a take steps to get yield similar to the lost approvals for and plants/trees; payment of additional compensation to which APs are d) in the case of timber entitled as rapidly as trees, APs will be permitted possible. to harvest trees and sell the timber. Allowances Relocation Owners of A moving allowance to cover Restoration of of structures the costs of moving personal conditions. permanent possessions, paid in cash or structures in kind (e.g., provision of transport). Unforeseen Concerned These will be determined as or affected per the principles of this RF unintended people and ADB's safeguard policy. impacts

7. The final budget for RP in this project under tranche 3 is PGK7, 570,000.00 based on the DLPP land investigations and valuation of assets in consultation with affected landowners and expected adjustments to be able to apply the existing market prices when the compensation will be made. The summary of land acquisition and affected persons is in Table 3.

TABLE 3: SUMMARY OF LAND ACQUISITION AND NUMBER OF AFFECTED PERSONS

Total land to be acquired (Phase 1) Portion 1049C – 34.485 (ha) (Phase 2) Portion 1160C &1164 – 18.07 (ha)

No. of Affected 511 Persons (Male: 275) (Female: 236)

No. of Affected Persons and 11 persons households currently present (4 households)

No. of Persons having the 500 persons land ownership rights but not currently occupying and using the land. No of Persons 0 Requiring Income Restoration

8. NAC will allocate adequate resources to implement and monitor the RP. It will ensure that adequate funds are allocated and disbursed to pay compensation for affected land and assets. Civil works will not commence before the RP has been approved and land compensation paid in full. This RP will be updated to reflect the current market prices at the time of payment. Updating will also be required if there are changes in (i) scope of work which will entail land acquisition and resettlement, (ii)changes in the number of APs identified;(iii) changes in compensation rate and arrangements; (iv) and other unanticipated impacts.

9. NAC will submit semi-annual reports to ADB on the implementation of the RP. It will also submit a compensation completion report to ADB once payment for land and productive asset has been completed. This compensation report will be prepared to reflect (i) compensation payment agreement, (ii) transfer of deed or deed of release (iii) rezoning and survey plans (iv) amalgamation and the eventual new land title for the aerodrome with its legal description. This process will be done by the DLPP upon completion of the payment and acquisition process.

A. Project Description

10. The current state of the airports in Papua New Guinea (PNG) is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centres in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the national and international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

11. In this Tranche 3 for Civil Aviation Development Investment Program (CADIP), the following existing airports are identified for upgrading &rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in Sandaun Province; Mt Hagen in Western Highlands Province; Wewak Airport in East Sepik Province; Tari Airport in Hela Province; Gurney Airport in Milne Bay Province; Kerema Airport in Gulf Province; Kiunga Airport in the Western Province; Buka Airport in the Autonomous Region of Bougainville; and Momote Airport in the Manus Province;.

12. This Resettlement Plan (RP) is prepared for Kavieng Airport Runway Extension, Pavement Strengthening& Associated Works project. Only the scope of works for Kavieng Airport is in Table 1. Figure 1 shows an aerial view of the Kavieng Airport and the runway extension area while Figure 2 is the aerial view of the design and extension view.

13. Kavieng Airport Runway Extension, Pavement Strengthening& Associated Works projects one of the projects identified for upgrading & rehabilitation to meet national and international standards and requirements by ICAO. This project comes under Tranche 3 of CADIP to be implemented by National Airports Corporation (NAC).

14. Kavieng Airport Runway Extension, Pavement Strengthening & Associated Works project will result in the extension of the existing runway by 406 metres as well as strengthening of the runway, taxiway and apron pavements and associated works. Table 1 provides the scope of the activities.

FIGURE 1: KAVIENG AIRPORT AND THE PROPOSED RUNWAY EXTENSION

Omo customary land area

toNamatanai Buluminksi Highway

Administration & CBD

Main Runway / Taxiway & Apron

Town Housing area Terminal Facilities area Proposed Runway Extension Area

Secondary savannah grassland

FIGURE 2: LAYOUT OF THE KAVIENG AIRPORT RUNWAY EXTENSION

ATABLE 4: SCOPE OF WORK FOR KAVIENG AIRPORT

ProjectD Location KaviengB Airport New Ireland Province Proposed Development Works

A. Aircraft Pavements and Associated Airside Works 1. Repairs to existing aircraft pavement (Rwy,Twy & Apron); 2. Strengthen existing aircraft pavements (Rwy, Twy & Apron); 3. Extend Runway by 406m to the SW end to give 1900m overall length including new turning nodes; 4. Construct stop ways at both existing end and extended end of runway; 5. Construct RESA at both existing end and extended end of Runway; 6. Expand Apron to cater for 2Nos. F100 and 1No. Dash 8 aircraft; 7. Construct 3.0m wide full strength shoulders to Runway on each side; 8. Construct 5.0m wide full strength shoulders to Taxiway on each side; 9. Construct 5.0m wide full strength shoulders to Apron; 10. Construct temporary access taxiway. (for use by aircraft during applicable construction stages) 11. Earthworks to flank areas adjacent to the runway, taxiway and apron shoulders. 12. Runway Strip widening to 150m wide including earthworks, grading, and top soil and grassing; 13. Aircraft Pavement Line Markings; 14. Construct reinforced concrete wheel pads for 2 x F100 aircraft parking bays; 15. Supply and apply 2-coat aircraft fuel resistant membrane (MasterSeal II TM) on 2 x F100 and 1 x Dash 8 aircraft parking positions; 16. Construct Open Unlined Drains (OUD) either side of widened runway strip; 17. Install subsoil drains on full length of runway on both sides; 18. Construct 60m long RC box culvert beneath taxiway; 19. Construct 24m long RC box culvert beneath temporary taxiway; 20. Construct 6m long 600mm dia pipe drain west of taxiway; and 21. Construct 2Nos. 7320m long twin 1200 dia. Culverts beneath new fence installation at NW end;

15. The project follows appropriate engineering design and the land acquisition is essential to the runway extension and resettlement impacts are contained within this plan. The project will use the existing access road running parallel to the airport to get to the south eastern end where the runway will be extended.

16. The Kavieng Airport Runway Extension, Pavement Strengthening& Associated Works project investment cost (excluding land acquisition costs) is estimated at US$20.9 million (PGK58 million) and involves acquisition of 52.567 hectares of land for the additional 406 metre length of the runway to give 1,900m optimum runway length for Fokker 100 aircrafts operations or similar. Construction of a new terminal building will be part of the associated works.

B. Scope of Land Acquisition and Resettlement

17. The GoPNG will acquire the 52.67Ha of land for aerodrome purpose which is mostly secondary regrowth forest together with patches of garden and fruit trees such as mangoes, pau, and pawpaw. There are sparse coconut and cocoa trees. The 10 clans who owned the land have consented in allowing the GoPNG to acquire the land through a Certificate of Alienation that is issued through the Department of Provincial and Local Level Government (DPLLG). Nearly 500 out of the 511 affected persons reside outside of Maiom village and the listing in the LIR indicates that most are living in other parts of PNG for work through marriage or other personal reasons. The landowners over the years have not constructed structures along the approach into and out of the flight path of the airport to ensure safety. Table 6 provides the breakdown of structures and land that needs to be acquired and the number of APs for each of the sub-project components. The bulk of compensation will be for the unimproved land. . 18. The lands to be acquired will accommodate for the extension of the runway to bring the total runway length to 1,900m to allow Fokker 100 aircrafts or similar to operate at maximum take-off weight. This would mean more passenger travels and aircrafts movements that will be a catalyst for tourism and spin off businesses

19. All affected assets and land for acquisition have been valued and will be compensated based on existing market prices when payment will be done. Table 2 listed the ten clans that have signed on with the New Ireland Provincial Administration (NIPA) and Department of Lands and Physical Planning (DLPP) Land Investigation Survey and Report. The LIRs attached separately details the land improved and unimproved value.

TABLE 6: LAND ACQUISTION AND NO OF APS IN SUB-PROJECT COMPONENT

Customary Area Clan Name No of Contents Remarks Land (Ha) clan members (AP) Kalapok 21.71 Makanuk M F Coconut and cocoa trees, fruit Refer annex IV for No1 37 40 trees, gardens & 2 graves listing of affected crops and structures Panamak 7.540 Makanuk 25 29 Fruit trees (mango and bamboo Refer annex V for No2 clumps listing of affected crops and structures Panavul 6.480 Malip 45 34 Fruit trees and coconut palms Refer annex VI for listing of affected crops and structures Panagumi 3.905 Tivingau/Pa 54 36 Garden and fruit trees and Refer annex VII for navul some cocoa listing of affected crops and structures Kulagavus 2.990 Makanuk 5 3 Garden and fruit trees Refer annex VIII for listing of affected crops and structures Lovulit 2.680 Makanuk/M 13 19 Garden food predominantly Refer annex IX for

atanasoi listing of affected crops and structures Lisuak 1.24 0 Tivingau/Liv 27 25 Fruit trees plus three balsa Refer annex X for agai trees listing of affected crops and structures Vuvut/Panagui 1.860 Tivingau/Ma 14 17 Few coconut and predominantly Refer annex XI for s r garden and fruit trees listing of affected crops and structures Lokau 0.970 Peni Family 44 27 Predominantly garden, few Refer annex XII for Group coconut and fruit trees listing of affected crops and structures Panatovo 3.180 Tivingau/Pa 11 6 Few coconut, fruit and garden Refer annex XIII for navego crops i.e. kaukau, guava & 12 listing of affected graves crops and structures Total 52.555 27 23 5 6 . Fruit trees can include pawpaw, citrus, mango, brush cherry (laulau) taun (Pometia pinnata), pau ( Barringtonia edulis, betel nut (Areca catechu), guava. . Garden include peanut and sweet potato (kaukau), cassava and breadfruit (Moraceae spp) . Timber trees include rosewood ( Dalbergia latifolia), also taun,balsa (Ochroma pyramidale)

20. The project will only displace 5 households of a total of 11 persons. Their household includes 1 permanent house, 3 semi-permanent structures and 1 bush material (Table 5). Their houses will be shifted to other portions of land owned by the clan.

TABLE 5: AFFECTED STRUCTURES

Structure Value 1 permanent house K2000 semi-permanent houses (3) K3000 1 bush material house K300 .

21. The sparse gardens that are within the sub project area belong to a handful of clan members. They use this garden in addition to other garden areas that are available in the vicinity of Maiom village. They do not depend totally on these gardens and have additional means of support through “wantok system” where families are obliged to support their kinsfolks in their clans while the working relatives outside of New Ireland remit funds back to them. Discussions with the remaining families on the periphery of the sub project indicate that they have sufficient land available for them in nearby locations to continue their food gardens even after loss of their part of gardens due to land acquisition.

22. Two clans have 14 graves in the community away from the main runway extension work area close to the fence line but this will not be removed. However, if the communities request to transfer the graves then an agreement will be reached on the processes and assistance required.

23. There are no common property resources to be affected by the project. If there are unanticipated impacts to be identified during implementation, then RP will be updated based on the social impact assessment or a corrective action plan will be prepared and implemented as per ADBs SPS 2009 if there will be non-compliance.

C. Socioeconomic Information and Profiles

a. Demographic Features of Affected Peoples

24. A socio-economic assessment for the 11 APs currently residing along the fringe of the proposed acquisition area shows that they are all capable of generating income for their families and household. Although they live a more subsistence lifestyle, they cultivate land, raise poultry, and do informal marketing like selling of betel nut and cigarettes and garden produce at the nearby market.

TABLE 7: STATUS OF HOUSEHOLD HEADS

APs currently living at the land area Tobe acquired Total Single Married Widow/er divorce Handicap Male 2 2 1 0 0 5 Felame 4 2 0 0 0 6 Total 6 4 1 11

25. Household income for the 11 APs at the proposed acquisition area is summarized in the table below.

TABLE 8: ESTIMATED INCOME OF AFFECTED PERSONS

Source of income Estimate (PNGK) per year Informal marketing 3000.00 Other Family member financial support or 500.00 contribution Livestock (Poultry/Pig raising) 1000.00 Sales of fresh garden produce 1500.00 Total 6000.00

26. Total APs income is estimated to be PNGK6000.00 (US$2000.00) per year. To measure against poverty level on a daily basis would estimate to daily income ofPNGK16.45 (US$ 5.4) which is marginally above the poverty line of US$ 1 (K3.00) per day.

27. The LIRs conducted in 2009 and 2011 and recent field visit by the NAC indicated that up to 500 of the 511 affected persons are absent from Maiom. They do have claims to their clan lands but are residing in other towns in Papua New Guinea and do not have access to their portions of land (i.e. Portion 1049C, 1160C and 1164C). It may seem to a loss to them however the clan leaders will ensure that they do receive some assistance from their clan compensation payments.

b. Socio-economic Profile of Kavieng Population

28. The estimated rural population of Kavieng Urban is56 000 (2000 census). The highest population densities are on the East Islands and Tingwon Island with 162persons/km2. The coastal plains of Lavongai Island have moderate densities of 47 persons/km2, while New Ireland and Dyaul Island have 30 persons/km2. The Saint Matthias Islands support 16 persons/km2, while the interior of Lavongai Island has 4 persons/km2. The Kaut hills and coastal plains, southeast of Kavieng, have significant in-migration.

29. The population of the Tigak and East Coast Kara Nalik census divisions increased by an average of eight per cent per year between 1980 and 1990. These are fast growing populations. Certainly the sub project area with Maiom village close by would have an increasing population rate although most of the clan members in this sub project are in other provinces as stated in the LIR.

c. Access to services

30. People on New Ireland, in the coastal areas of Lavongai Island, and on Tingwon and Dyaul islands require less than four hours travel to reach Kavieng, while people in the Saint Matthias Islands and those in the interior of Lavongai Island require 4–8 hours’ travel. There are good roads in the coastal areas of New Ireland and minor roads on Lavongai, Dyaul and Mussau islands. Outboard motor boat and canoe travel are used along the coast and between the islands. Maiom village is less than a kilometre from Kavieng town and the villagers have easy access to health and education and business services within Kavieng Township.

d. Income

31. Incomes are high on New Ireland, in the coastal areas of Lavongai Island, and on Tingwon and Dyaul islands, and are derived from the sale of copra, cocoa, oil palm, betel nut, fish and fresh food. People in the inland areas of Lavongai Island and in the Saint Matthias Islands earn moderate incomes from sales of betel nut, fresh food, tobacco, copra and fish. Many sources of non-agricultural income exist in the northeast of New Ireland. Within Maiom villages the majority of the clans’ members are listed on the LIR as absent and living in other provinces of Papua New Guinea. There is definitely remittance of monies back to New Ireland by relatives since the local customs are strong and clan members always help each other out.

e. Subsistence agriculture and nutrition

32. Agriculture on the coastal plains of New Ireland and in the Saint Matthias Islands is characterised by low intensity sweet potato and taro cultivation. Sago is the most important food on the coast of Lavongai and Dyaul islands and at Balgai Bay and is supplemented by low intensity mixed staple or sweet potato cultivation. People in the interior of Lavongai Island cultivate low intensity mixed staple gardens. Coconut is an important food in all coastal areas. In the 1982–83 National Nutrition Survey, malnutrition in children under five years was assessed as poor; 36 per cent of children were stunted and three per cent were seriously underweight. From the LIR, only patches of gardens exist within the portions of land that is proposed to be acquired and developed. Notable garden items are peanut, sweet potato and yam although the clan members do have other lands that are used for gardening.

f. Land potential

33. Land potential is very high in the Tingwon Islands with no limitations. The Kaut hills have high potential limited by frequent cloud cover. The northern hills of Lavongai Island have moderate potential with frequent cloud cover, while the east coast plains of New Ireland, Dyaul and Emirau islands and the East Islands and have moderate potential with poor soils. Mussau Island has low potential constrained by high rainfall and frequent cloud cover, while the mountains of New Ireland and Lavongai Island have low potential due to steep slopes, poor soils and frequent cloud cover Currently the land that will be acquired is of high potential because it happens to be in the flight path and hence is essential for the runway extension.

g. Agricultural pressure and potential

34. There is some marginal agricultural pressure near Kaut and in the East Islands. This will be of more concern in the future if agriculture continues to intensify without the adoption of suitable land management practices. There is potential for agricultural development in the Kaut hills given the high land potential and close proximity to Kavieng. Copra, cocoa and fresh food are established smallholder cash-earning activities in the area.

h. Disadvantaged people

35. The most disadvantaged people in the district are the large numbers on Mussau Island, Lavongai Island and on the west coast of New Ireland who live in low potential environments. People in the East Islands and on Tingwon Island are also at a disadvantage due to very high population densities, which lead to land shortages. As a result, people become vulnerable to food and water shortages during periods of drought. Overall, people in Kavieng District are slightly disadvantaged relative to people in other districts of PNG.

36. There is no agricultural pressure, land potential is moderate, access to services is good and cash incomes are high. In Maiom village, it is fair to say that the land that will be given up by the clans would not disadvantage them to much because they also have access to other land belonging to them situated away from the proposed acquisition area that they are currently using to support their household income. One possibility would be for them to be relocated back to their other land to continue with their subsistence living. The project will look into supplying support services like water supply tanks, bore water reticulation, road access improvement for the APs in their other land they will be relocated to.

i. Project’s Impacts on Poor, Different Ethnic Groups, and other Vulnerable Groups

37. The clans will lose their land as they are acquired but only two families with a total of eleven individuals from two households are now living in the project area and will be relocated to a designated area marked out by the New Ireland Provincial Administration in consultation with the clan members.

38. Most Affected People view the loss of land as manageable due to availability of other pieces of lands that would allow for starting new gardens for food or income. The financial income from the sale of the land would create useful opportunities to re-establish the clans again and maybe venture into spin off benefits arising from the airport development. There are no vulnerable groups identified.

39. There is no expected negative impact on the social structure of the AP and the beneficiary communities since land acquisition will not have significant displacement. There is no expected adverse impact on cultural identities or heritage of the affected people resulting from land acquisition.

j. Gender and Resettlement Impact

40. Land to be acquired will impact upon women who rely on their gardens for food production but the impacts are not great as they will move to other land for gardening that would be in the vicinity of Maiom village. The land compensation received will be shared equally among the women so that they benefit equally as their male members. The mechanism below shall ensure equal sharing of compensation among APs (both men and women):

 Consultation and decision should include 30% women from the total APs  Verify women representative in the respective clan groups  Confirm women’s status, responsivities, eligibility for entitlements in their respective clans. This can be identified with assistance from the clan leaders.  Decision making should also include women’s voice  Make sure eligible women for compensation payment agrees to the form of compensation payment either in cash or cheque or bank transfer.  Compensation payment received will enable sustainability of the women and household income

41. A separate Gender Action Plan provides detailed measures on gender activities that will benefit both men and women in clan groups although work on airport development will

13 be only for a period of 18 months and opportunities may be limited because of the nature of the scope of work.

D. Informal Disclosure, Consultation and Participation

a. Project Stakeholders

42. The primary stakeholders of the airport runway extension project are the ten clans from Maiom village whose land would be acquired by the sub-project to allow for the Kavieng airport runway extension. The National Airport Corporation will be the new owners of the acquired land for runway extension. Other stakeholders are the Provincial and National governments and the surrounding communities in the project area.

b. Consultation and Participation Mechanisms

43. The consultation and disclosure activities undertaken for the preparation of RP of the project started early. Since 2009 up to 2011, the GoPNG set out plans to acquire the airport land as they saw this as an opportunity to increase adventure tourism and related businesses opportunities in New Ireland province. Hence consultation with the landowners began then where Land Investigations were conducted by the New Ireland Provincial Administration (NIPA) in unison with the Department of Lands and Physical Planning where LIRs were produced for the twelve clans.

44. At the project level, the mechanism for consultations through the office of the Provincial Administrator of the province. The NIPA is the central point of consultation, liaise with APs on behalf of the State and NAC in terms of awareness and LIR because they have the resources, local knowledge, experience in dealing with developmental affairs related to customary land acquisition. A follow up consultations were held among NAC, NIPA and the 5 households (11 affected persons) who were leaving at the fringes of the project site. An example of a notification letter for a consultation in October 2015 is attached as Annex 2. The consultation was conducted by the NAC officer supported by the ADB Safeguard Specialist (consultant). The APs agreed for their land to be out rightly purchased for Kavieng airport upgrading and rehabilitation.

45. Among the issues raised by the affected persons include: (i) full payment of compensation prior to relocation; (ii) the need for water supply; and (iii) access to employment during construction. These were taken into account in the project. Table 4 provides the summary of the consultation done with provincial government.

c. Activities Undertaken to Disseminate Project and Resettlement Plan

45. This RP will be made available to affected persons and key government stakeholders prior to finalization and submission to ADB for approval and posting on the website. Consultation will be maintained with the affected persons and relevant parties during the implementation of the RP to assess their satisfaction and get their feedback on any relevant issues related to social aspects of the project. This RP will be updated to reflect the adjustments on the 2013 Valuation General’s Schedule based on the inflation rate at the time of payment. Any updates to the RP will be disclosed to affected persons including all the key stakeholders and submit to ADB for clearance and disclosure on their website.

46. The full RP that will be made available in English, the official language in PNG, in accessible public locations. Each clan member representative will be provided with a summary brochure in Tok Pisin once the ADB approves the RP. The approved RP will be uploaded to the NAC website (www.nac.com.pg) and will also be uploaded to the ADB website (www.adb.org).

TABLE 2: CONSULTATION POINTS FROM NAC- NIPA MEETING

Date Thursday 22/10/2015 Venue New Ireland Provincial Administrator’s Office – Kavieng Attendance 1. David Lens d/District Administrator - Kavieng District, NIPA 2. Moses Maki - a/PA, NIPA 3. Bill Peruam - a/CEO, NIPA 4. Jordan Bulo Environment Coordinator, NIPA 5. Evelyn Muap - Coordinator, PCMC & National Functions, NIPA 6. John Duguman - Safeguard Consultant, ADB 7. Barksy Panka Safeguard Officer, CADIP, NAC Points from the Discussions notes have not been recorded on the file however meeting points discussion are listed below. These reflect up to the current status of discussions between the National Airport Corporation and New Ireland Provincial Administration.

. Discussion between NAC and New Ireland Provincial Administration (NIPA) began in 2009 when CADIP commenced and this has continued up to 2015 when another consultation meeting was conducted. . The Land Investigation Survey and Report for Portion 1049C, 1160C and 1164C concluded in 2009 then 2011 that there are eleven portions of land within the three named Portions. These land portions are owned by twelve clans and family groups and there is no dispute on all portions of land. . Since 2009 up to 2015, the problem was in getting the Government of Papua New Guinea to compulsory acquire the total of 52.555 ha for the airport runway extension. Funding for the portion of land total over PGK 4.9 million. . NIPA has also had a change in Provincial Administrators since 2009 and the current person has been acting in that capacity for only six months. The turnover of staff does not allow for project continuity. . Letter of support have been sighted from the local Member of Parliament and is attached as Annex III. Often discussions are to brief the NIPA on the progress of CADIP and the preparation of documents that are part of the Periodic Financial Review (PFR) as requested by Asian Development Bank.

E. Grievance Redress Mechanism

47. NAC has established a grievance redress mechanism to receive and address project related concerns and to resolve land related disputes that may arise during project implementation, as shown in Figure 3. Affected People will be informed by NAC on how they can have access to the grievance redress mechanism. Other than disputes relating to land ownership rights under the court of law, most grievances related to resettlement benefits, relocation, and other assistance are expected to be resolved at the PMU level.

48. Affected People can first lodge a project-related complaint with the ward councillor and resolve at the village level. If it cannot be resolved, then it goes to PMU office at the project site. The PMU project manager will consider the complaint and within one week will convey a decision to the APs. The PIU safeguard Officer as well as local government officials will assist the project manager in reviewing and addressing the complaint. The safeguard team will also facilitate communication between APs and the PMU in this process. If the APs are not satisfied with the PMU’s decision, they may then take the grievance to the CEO of NAC. The CEO has two weeks to consider the complaint and following this (s) he will either instruct the PMU to rectify the situation or dismiss the complaint. Should APs be not satisfied with the decision of the CEO; they may take the grievance to the PNG judicial system.

49. The Land Disputes Settlement Act (2000) establishes legal procedures for resolution of landownership disputes on customary land. It has a mediation process whereby a designated 14 mediator meets with the disputing parties to resolve grievances. This process is closely allied with the village court system and traditional mediation procedures that draw on the skills of recognized local leaders and elders. The landowner clans or ILGs, if clans are incorporated, are responsible for dealing with disputes between group members or between the clan group and a member, including disputes over entitlement to group membership. External mediators will facilitate resolution in case disputes are between different clans or ILGs.

50. An initial step will be for the PMU in coordination with DLO to facilitate procedures to resolve land disputes based on a process of mediation. As required, the participation of appointed and traditional leaders will be encouraged to achieve satisfactory resolution of issues at the local level. If that fails, procedures as set out in the Land Disputes Settlement Act (2000) will be followed.

51. The Act promotes a process for resolution of land disputes through (i) mediation, followed by (ii) appeal to the designated courts. The mediation process is based on the principles of traditional dispute settlement. The steps in the dispute resolution process include:

52. In the event of grievances that cannot be resolved through mediation, the DPE/NAC and DLO will hold the compensation amounts in escrow. Compensation will be paid in full upon final resolution of the case in the courts or other forum, in accordance with the entitlements of the affected person.

FIGURE 3: GREIVANCE REDRESS MECHANISM

F. Legal Framework

a. National and Local Laws and ADB Policy Requirements

53. The policy framework and resettlement entitlements are based on the laws and regulations of the GoPNG and the ADB’s Safeguard policy. The principal PNG laws include: (i) the 1996 Land Act; and, (ii) the 2000 Land Disputes Settlement Act. Relevant ADB policies include the 2009 Safeguard Policy Statement and Gender and Development Policy and Public Communication Policy 2011.

54. GoPNG does not have any specific policies at the national, provincial or local level for relocating and resettling people. GoPNG has policies related to the acquisition of land and assets by the State for public purposes on an agreement basis or compulsory acquisition basis. This together with customary lands and related legal procedures, compensation payable, and the legally defined procedures for receiving and facilitating the resolution of affected persons’ concerns and grievances are all incorporated in the Land Act of 1996.

55. The Act covers customary land rights, which includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary right holders”; these persons are using known as the leaders of the group who collectively have the authority to allocate use rights through their spokesperson. The other members of these groups or clans typically possess “secondary rights” because their rights to the land may have been inherited from a primary rights holder through marriage that is they are either married to a primary right holder or as a child or an adopted child of the primary rights holder . 56. ADB 2009 SPS principles and PNG legal provisions on land acquisition relevant to a project of this nature are summarized and compared in Table 5 below. The table also includes gap filling measures to ensure compliance with SPS for the project.

T ABLE 3: COMPARISON OF ADB SPS AND PNG LAWS ON RP MEASURES

ADB SPS Principles on Land Measures to Compliance with ADB SPS Acquisition/Resettlement  Screen the Project early on to identify  NAC has devoted considerable resources, past, present, and future involuntary including the mobilization of its Safeguard resettlement impacts and risks. Officer who regularly travels out to Kavieng for consultation.

 Carry out meaningful consultations with  This RP addresses this policy principle. As affected persons, host communities, and per the RP several rounds of consultations concerned non-governmental have been facilitated with APs. Their ideas on organizations. Inform all displaced Project design, especially to minimize the loss persons of their entitlements and of productive assets have been taken into resettlement options. Ensure their serious consideration by NAC apart from the participation in planning, implementation, 500 APs having the landownership rights, 11 and monitoring and evaluation of of the APs and their 5 households (1 resettlement programs. Pay particular permanent, 3 semi-permanent and 1 bush attention to the needs of vulnerable material houses) are currently residing on the groups, especially those below the land area to be acquired. Their structures and poverty line, the landless, elderly, planted improvements will be compensated. women and children, and Indigenous All APs are indigenous. A grievance redress Peoples, and those without legal title to mechanism has been prepared by NAC and land, and ensure their participation in incorporated in this RP to ensure APs can consultations. Establish a grievance seek effective redress. redress mechanism to receive and facilitate resolution of the affected persons’ concerns.

 Improve or at least restore, the  The main issue here related to the prompt livelihoods of all displaced persons payment of compensation costs as per the through (i) land-based resettlement LIR and NAC has worked very closely with strategies when affected livelihoods are APs and NIPA to ensure the process has land-based where possible or cash been transparent and fair to all APs. compensation at replacement value for land when the loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation at full replacement cost for assets that cannot be restored; and, (iv) additional revenues and services through benefit sharing schemes where possible.

 Provide physically and displaced  Only two households with 11persons will be persons with needed assistance, relocated to a designated site. They are including the following: (i) secure land entitled to payment of their structures at full use tenure on land identified for new replacement cost and other assistance such garden sites and (ii) if necessary as relocation and transport allowance. transitional support and development assistance such as land development, credit facilities, training, or employment opportunities.

 Improve the standards of living of the  There are no vulnerable persons identified. displaced poor and other vulnerable groups, including women, to at least national minimum standards and provide access to land and other resources that is both legal and affordable.

 Develop procedures in a transparent,  There are no negotiated settlements just consistent, and equitable manner if land consultations with affected persons. acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

 Ensure that displaced persons without  This is not an issue for this Project. APs in the titles to land or any recognizable legal land to be acquired have the customary rights to land are eligible for resettlement ownership rights to this land. GoPNG through assistance and compensation of loss of NAC will compensate them for the non-land assets. unimproved value of the land including loss of trees, vegetation and crops of economic value and household structures.

 Prepare a draft resettlement plan and  This has been complied with by NAC as per disclose a resettlement plan elaborating this RP. on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. This has been complied with as per this Draft RP.

 Pay compensation and provide other resettlement entitlements before physical  This will be complied with by NAC as per this or economic displacement and RP implement the resettlement plan under close supervision throughout project implementation.

 Monitor and assess resettlement  Relevant outcomes as per the RP will be outcomes, their impacts on the monitored by NAC and APs have the right to standards of living of displaced persons, mobilize independent monitors to be paid by and whether the objectives of the NAC if there are major disputes vis-à-vis land resettlement plan have been achieved acquisition process outcomes. by taking into account the baseline conditions and the results of resettlement monitoring and disclose these monitoring results.

57. The ADB’s 2009 SPS also states that where there are indigenous peoples their identity, dignity, human rights, livelihood systems, and cultural uniqueness must be safeguarded so they can receive culturally appropriate social and economic benefits. In the project area, there are no distinct groups identified as all APs whether they are customary land owners or settlers are indigenous citizens of PNG even though the settlers have originated from other regions of PNG.

58. The other policy of relevance to this Project is the ADB’s 2003 Policy on Gender and Development, which requires that all ADB financed projects ensure where possible and practicable special design features and strategies to be built into projects to facilitate and encourage women’s involvement and ensure tangible benefits for women.

59. There are some gaps between GoPNG policies and procedures and those of the ADB. The main gaps relate to (i) carrying out meaningful consultations that also ensure people living below the poverty line, the landless, elderly, women and children are consulted; (ii) requirement to improve or at least restore livelihoods of all displaced persons by ensuring the full replacement costs for assets lost is paid; (iii) provision of economically displaced persons with necessary assistance to improve upon or restore their existing livelihoods at least to national minimum standards of living; (iv) ensuring that displaced persons without recognizable rights to land are eligible for compensation for loss of non-land assets; and, (v) monitoring and assessment of resettlement outcomes.

TABLE 4: COMPARISON OF GOPNG LAW AND ADB POLICY AND GAP-FILLING MEASURES

Equivalence Gap-filling Measures ADB SPS Requirements or Gaps PNG Laws on on Involuntary between ADB RP Resettlement SPS and PNG Laws Avoid involuntary The National Constitution No explicit T he RP includes measures resettlement wherever (NC) National Goal 5(4) reference to the on avoiding/minimizing land possible. Minimize calls for ‘traditional villages need for acquisition. involuntary resettlement by and communities to avoidance or exploring project and remain as viable units of minimizing design alternatives. Papua New Guinean resettlement society’. Section 53 impacts. protects citizens from ‘unjust deprivation of property’ by limiting the justification for compulsory acquisition by the State. Enhance, or at least General principles of PNG Laws do The RP include measures on restore, the livelihoods of all compensation for damage not prescribe compensation at replacement displaced persons in real or destruction of physical measures of cost for affected assets and terms relative to pre-project and economic assets are replacement to restore/improve living levels. Improve the set out in NC s.53, Land cost or standard of APs. standards of living of the Act (LA) s.23. restore/improve displaced poor and other standard of vulnerable groups. living. Screen the project early on RP sets out the process No specific The RP includes measures to identify past, present, for Land Investigation requirements on survey/census, cut-off- and future involuntary Report which includes for census, cut- date, assessment of impacts resettlement impacts and identification of affected off date, impact and resettlement planning. risks. Determine the scope clans/tribes and their assessment of resettlement planning assets. and through a survey and/or resettlement census of displaced planning. persons, including a gender analysis, specifically related to resettlement impacts and risks. Carry out meaningful NC National Goal 2(9) No specific The RP includes measures consultations with APs, calls for every citizen to be provisions on consultations with APs, host communities, and able to participate, either for preparing including vulnerable groups, concerned NGOs. Inform all directly or through a and during preparation and displaced persons of their representative, in the implementing implementation of RP. entitlements and consideration of any RP based on Document includes specific resettlement options. matter affecting his meaningful consultation, information and Ensure their participation in interests or the interests of consultations participation measures. planning, implementation, his community. with APs, and monitoring and including the evaluation of resettlement poor, the programmes. Pay particular landless, attention to the needs of elderly, women, vulnerable groups, and other especially those below the vulnerable poverty line, the landless, groups the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations.

Equivalence Gap-filling Measures ADB SPS Requirements or Gaps PNG Laws on on Involuntary between ADB RP Resettlement SPS and PNG Laws Establish a grievance Land Disputes Settlement No The RP includes measures redress mechanism to Act provides for measures requirements on project-specific grievance receive and facilitate on resolution of disputes for a project- redress mechanism. resolution of the affected and grievances through specific persons’ concerns. Support both local mediation as grievance the social and cultural well as court process. redress institutions of displaced mechanism. persons and their host The Program is not expected population. Where No specific to involve highly complex and involuntary resettlement requirement for sensitive projects, so it is not impacts and risks are highly a social needed to have a separate complex and sensitive, preparation phase. compensation and phase for resettlement decisions highly complex should be preceded by a and sensitive social preparation phase. projects. Improve, or at least restore, Principles of compensation No specific The RP includes measures of the livelihoods of all set out in NC s.53, LA requirement for on-site displaced persons through s.23. land-based relocation/replacement of (i) land-based resettlement resettlement, affected structures, strategies when affected replacement of compensation at replacement livelihoods are land based assets, and cost for affected assets on where possible or cash compensation additional land and priority of compensation at at replacement project employment to APs. replacement value for land cost, and when the loss of land does benefit sharing. not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. Provide physically and PNG allow people eligible PNG laws have The RP includes measures economically displaced for compensation to no specific on-site relocation of affected persons with needed receive their entitlements provisions on structures to the adjoining assistance, including the in cash. relocation, land following: (i) if there is transitional relocation, secured tenure support and to relocation land, better civil housing at resettlement infrastructure sites with comparable and services. access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities;

Equivalence Gap-filling Measures ADB SPS Requirements or Gaps PNG Laws on on Involuntary between ADB RP Resettlement SPS and PNG Laws and (iii) civic infrastructure and community services, as required.

Improve the standards of NC and LA include general PNG Laws do No specific measures are living of the displaced poor principles of compensation not prescribe required for this Project as and other vulnerable for damages or losses. measures on the impacts on APs groups, including women, improvement of livelihoods are very minimal. to at least national living standard minimum standards. In rural and restoration areas provide them with of livelihoods. legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. Develop procedures in a NC National Goal 2(9) PNG Laws do The RP describes procedures transparent, consistent, and calls for ‘every citizen to not specifically for the negotiation on use of equitable manner if land be able to participate, require third- additional land with acquisition is through either directly or through a party landowner groups through negotiated settlement to representative, in the verification of memoranda of agreements ensure that those people consideration of any negotiated (MOAs) to be verified by a who enter into negotiated matter affecting his agreement. third-party. The MOA’s will settlements will maintain interests or the interests of be signed with respective the same or better income his community’. landowner groups. and livelihood status. LA sets out procedures for outright purchase or lease.

The Fairness of Transaction Act sets out rules on fairness of transactions. Ensure that displaced LA s.13-15 provides some PNG Laws do The entitlement matrix for the persons without titles to entitlement to not provide project provides for land or any recognizable compensation to any entitlement to resettlement assistance and legal rights to land are people with ‘an interest’ in non-titleholders compensation for non-land eligible for resettlement land over which the State who do not assets to non-titled APs assistance and exercises its power of have legal without legal interest. compensation for loss of no compulsory acquisition. interest on land assets land. Prepare a resettlement plan NC National Goal 2(3) PNG Laws The RP has been prepared in elaborating on displaced calls for ‘every effort to be have no accordance with ADB SPS persons’ entitlements, the made to achieve an provision of requirements but there is no income and livelihood equitable distribution of preparing RP. physical displacement nor restoration strategy, incomes and other severely impacted APs and institutional arrangements, benefits of development hence physical resettlement

Equivalence Gap-filling Measures ADB SPS Requirements or Gaps PNG Laws on on Involuntary between ADB RP Resettlement SPS and PNG Laws monitoring and reporting among individuals and and income and livelihood framework, budget, and throughout the various restoration are not relevant time-bound implementation parts of the country’. schedule. Disclose a draft NC National Goal 2(9) No specific The RP includes disclosure resettlement plan, including calls for ‘every citizen to requirements measures, including posting documentation of the be able to participate, on disclosures. on NAC and ADB websites consultation process in a either directly or through a and clan leaders/APs have timely manner, before representative, in the been provided with the project appraisal, in an consideration of any summary RP and information accessible place and a form matter affecting his brochures also in their local and language(s) interests or the interests of language. . understandable to affected his community’. persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. Conceive and execute No equivalent provision Gap. Land acquisition costs will be involuntary resettlement as included and financed out of part of a development the project cost. project or programme. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. Pay compensation and No equivalent provision Gap. The RP includes measures provide other resettlement on payment of compensation entitlements before physical for affected assets before or economic displacement. start of civil works on affected Implement the resettlement land. It also includes an plan under close implementation schedule. supervision throughout project implementation. Monitor and assess No equivalent provision Gap. The RP includes monitoring resettlement outcomes, measures, including their impacts on the requirements of semi-annual standards of living of safeguard monitoring report displaced persons, and by EA and if necessary third whether the objectives of party monitoring. the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

b. Resettlement Policy Principles for the Project

60. NAC as the EA that has prepared this RP unequivocally states that it will abide by national and local laws applicable to resettlement and the policy requirements of the ADB’s

SPS (2009). Specifically, NAC states that it will ensure affected landowners will be paid fair compensation for land and other productive assets acquired based on the valuation schedule 2013, taking into consideration the inflation rate over the past three years at an updated market price at agreed upon replacement cost. NAC will be responsive to grievance processes and act in an accountable and transparent manner, and will ensure that women will also be entitled to benefit during the resettlement processes. The principles on land acquisition, compensation and resettlement that NAC will commit itself to in the Kavieng Airport Project include:

(i) Land acquisition and resettlement will be optimised through careful engineering design. In particular, there will be very little or no displacement of people. Restrict clearing to survey designed footprint in the land portions. (ii) APs will be consulted during project cycle. RP will be prepared and updated in participation of APs. Effective mechanisms will be established for hearing and resolving grievances. (iii) APs will receive compensation at updated calculated rates based on existing market prices for their loss of assets so that they will be as well-off without the project. (iv) All compensations will be fully paid to APs prior to the beginning of civil works in the project site. (v) Absence of formal title will not be a bar to compensation and assistance and particular attention will be paid to vulnerable groups (vi) Land acquisition and resettlement will be conceived as part of the project and costs related to resettlement will be included in and financed out of the project cost. (vii) The impacts of the project including unforeseen losses and damages that may occur during civil works will be carefully monitored and remedial steps taken as required.

c. Principles and Methodologies for Determining Valuations and Compensation Rates

61. NAC recognizes that affected land-users are entitled to compensation for the value of their land to be acquired and other improvements that will be lost because of the Project requirements. Valuation is based on the valuation schedule 2013 from the valuer general office, DLPP with adjustment to be made to account for the existing market rates at the time of payment. The schedule is the calculated cost taking into the account the productivity of economical trees and the cost incurred to grow the plant. The value of the land is based on the usage of the land (land use).

d. Description of Land Acquisition Process

62. Based on the Land Act 1996, the following procedures will be followed when acquiring the land:

 The first step would be to survey the land. This has been done by the Department of Lands and Physical Planning in 2009 and 2011.  The state is then notified why the land had been surveyed. NAC notified the New Ireland Provincial Administration (NIPA) of its intention to proceed with investigations for land acquisition.  The first step in acquiring the land begins and community consultations is carried out and information gathered is compiled into a Land Investigation Report. DLPP has prepared a Land Investigation Report (LIR) including ownership genealogy,

rights and interests held in the land, and, estimated value of improvements to land in consultation with the landowners, other relevant government offices and the private sector (Poliamba Oil Palm Estate).  As part of formalities, the state, in this case, the provincial government is informed about the outcome of the community consultations and meetings. The LIR has been submitted to the NIPA in Kavieng for its recommendation for the surveyed land to be alienated. The Department of Provincial and Local Level Government (DPLLG) will prepare a certificate of alienability confirming that there is no impediment to land acquisition.  This same report is also given to the Valuer-General in order for valuation of assets to be made. Valuation has been done through the Office of Valuer General and this is available for the compensation payment.  Once feedback is received from the Provincial government and the Valuer General, paper work needed to acquire the land begins. NAC will receive the valuation report and certificate of alienability, raises cheques and prepare purchase documents. The signed documents are sent to NIPA in Kavieng for their concurrence although NAC is responsible for payment after it secures funds from the GoPNG.  The final step towards acquiring the land is negotiating with the communities on the valuation price at replacement cost of the land that will be acquired. NIPA makes the offer to the landowners and this will be accepted. Hence the forms are executed and money is handed over in accordance with the requirements of the landowners. If rejected, it then goes to the Minister of Lands for Acquisition of the Land by the Department of Lands and Physical Planning.

G. Entitlements, Assistance and Benefits

a. Affected Person’s Entitlements and Eligibility

63. NAC has consulted with the affected clans and DLPP has undertaken a detailed land survey and investigation of actual land ownership in coordination with the District Land Officers. The LIRs listed as Annex IV – XIV provides a listing of the clan members in each of the ten clans.

64. DLO and DLPP have collect relevant information from the APs on land matters and resettlement issues. The land investigation report prepared by the Lands Officer on the 7th April 2009 then on 4th May 2011 and the 20th February 2012 represents “cut off” dates for eligibility for compensation and any rehabilitation assistance from the respective clan members. Not all LIR were done at the same time and hence the differing dates.

65. Persons that are not covered in the census, which is included in the LIR are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the valuation. Any person or group that occupies or uses the land identified for the Project after the cut-off date will not be eligible for any compensation and/or assistance. They will be required to move from the land as per the provisions of the Land Act.

66. Landowners and land users who have satisfied the DLO that they either have claims to the affected land and/or other productive assets or through the DLO investigation can demonstrate that they are the rightful owners or users will receive compensation for land acquired by the Project. Those APs who cannot satisfy the DLO that they are the rightful users but are using the land anyway will receive compensation for productive assets attached to the land and other assistance as required.

67. Eligibility and entitlement for compensation and other assistance for the APs under this project is summarized in the Entitlement Matrix below. The full list can be found in the Resettlement Framework prepared for CADIP.

TABLE 5: ENTITLEMENT MATRIX

Type of Impact Entitled Person (s) Entitlements Permanent acquisition Legal owner(s), including Landowners will be provided equivalent size of land. customary landowners and quality of land, or cash compensation at replacement cost. Informal settlers (e.g. on APs will be provided compensation only for land acquired as part of their damaged crops, trees, and structures ROW) with no legal rights on project-affected land

loss of crops, tress, Customary land owners and APs will be given notice to harvest crops structures and leaseholders if lease not and trees before site clearance or removal assets. expired prior to from required land. If APs are not able to commencement of land harvest, they will be paid cash clearance. compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for a period until new crops or trees produce an equivalent income.

A relocation allowance to cover the costs of moving personal possessions paid in cash or in kind (e.g. provision of transport).

Unforeseen or Concerned displaced These will be determined as per the unintended impacts persons principles of this RP and ADB’s Safeguard Policy.

68. It should be noted that the Entitlement Matrix attached in Table 7 has inference to health and employment impacts. These impacts are inter-connected with the EMP and were included as part of the disclosure of information to APs on Land Acquisition.

69. If payment of compensation is delayed, compensation rates will be updated regularly based on inflation rates to ensure that APs receive compensation at replacement cost at the time of compensation of payment.

b. Assistance to Vulnerable Groups

70. The socio-economic survey undertaken for this RP indicates there are no APs that can definitively be classified as vulnerable. Apart from the 500 APs who lives out of the project site, the remaining 11 persons raise livestock like chicken, pigs, plant food crops gardens, do informal marketing and have access to other gardens in addition to those to be acquired by the project. However, to add additional income to the 11 APs household, the successful contractor must undertake to employ at least one member from each AP household on construction-related activities on a full-time basis. This will be a requirement in the bidding documents that will be prepared for this Contract Package.

c. Opportunities for Affected Persons to Derive Appropriate Development Benefits

71. There are a number of quantifiable and non-quantifiable development benefits for Aps including:

 Employment opportunities: APs engaged by the contractors could receive a stable waged income over 18 months. This could be an opportunity for APs to acquire some non-agricultural skills without having to leave the local community.  Women will be offered the same types of employment-based opportunities as men. They will also be able to actively participate alongside men in other land acquisition- based activities. Such involvement of women could indirectly impact upon the structures of male domination in traditional PNG society.

 Social risks associated with HIV and AIDS and other STIs will be mitigated to a large extent by employing as many local people on project construction activities.

People will also benefit from the training and awareness on protecting themselves from HIV and AIDS that NAC will carry out in the area.  There will be opportunities to earn money from providing a range of goods and services to outside project construction workers.  The long term benefit of the projects that the people will have access to enhanced energy connectivity, hence their ability to have improved market links and access to a wider range of goods and services.

H. Relocation of Physical Structures

72. There are no other physical structures except for the 5 households (1 permanent, 3 semi-permanent, and 1 bush material house currently at the proposed fence line extension area. The APs have indicated to NIPA and NAC that they should be moving to other portion of their customary land out of land to be acquired for the project. Their identified area is accessible by the same unpaved road the leads to their current place of residence within proposed land area to be acquired.

73. The affected persons will be entitled to compensation for the loss structures at full replacement cost based on existing market prices and relocation and shifting allowance to cover the cost for moving the materials and daily allowance while the houses are being constructed. A one-time shifting allowance of PKG1000 per household and PGK 300 daily allowance for a period of 2 weeks will be provided to the 5 affected households.

I. Income Restoration and Rehabilitation

a. Income Restoration Program

74. Income of the 11 APs currently living in the land area to be acquired is basically subsistence farming and informal marketing. It’s not only within the project area that they substantially generate their income, they also have other portion of their land outside of the proposed acquisition area that they utilise to sustain their livelihood. These 11 APs will be considered for employment during project implementation. This will be an opportunity to restore their income loss during project implementation.

75. The practise of engaging locals for general cleaning and maintenance of the airport facilities, including the communities around the airport, customary landowners including those 11 APs shall be continued as part of NAC community service obligation (CSO) . They will be paid for their services as part of their engagement. This a long term arrangements to restore and sustain their household income as long as the airport remains operational.

b. Special Measures to Support Vulnerable Groups

76. Women APs want to ensure that their safety and security are not compromised any more than they are at present. All women APs who participated in consultations during field- based resettlement planning argued an influx of outside labour posed more of a threat to their safety and security than exist at present from clan and non-clan males. The EMP contains measures to mitigate such social risks.

c. Specific Gender Considerations

77. NAC recognizes that specific gender considerations apply to all energy projects it executes and manages. The measures proposed in this RP to enhance the positive impact of the Project on women APs and other women living in the Project area are as follows:

 Iterative consultations with women at all stages of the Project cycle and importantly in the preparation of the RP.  Facilitating processes whereby women APs can lodge grievances with NAC and ultimately ADB if they are dissatisfied with any aspects of the RP.  Ensuring that women APs are offered priority wage employment on the Project and are afforded equal pay and on-the-job training opportunities.  Addressing concerns women APs might have with safety and security issues in contexts where they have to relocate their gardening activities.  Ensuring that socio-economic data is gender disaggregated to analyse impacts at the intra-household and inter-household level.

d. Suggested Training Programs

78. APs that will be offered priority employment on the Project will be provided with on-the- job training by the contractor. Such training will include but not be restricted to activities such as concreting, welding, and attending to wood fabrication taking into account occupational health and safety issues and the lack of real experience by most APs, especially women APs.

J. Resettlement Budget and Financing Plan

79. The budget for land acquisition activities has been determined since 2009 and 2011 and contained in the Land Compensation and Acquisition Valuation Report (LCAVR) (Annex XVII). The rates will be adjusted at the time of actual payment to ensure application of existing market prices. The GoPNG and NAC will secure funding so that the APs can be compensated for their land. Certification of Alienation of their Land has been prepared and it is imperative that this process of securing funds commenced as soon as possible.

80. The land acquisition budget is presented in the table below.

TABLE 6: ESTIMATED LAND ACQUISITION BUDGET

Items Value

Planted Improvement Value includes tree crops including coconuts, cocoa, PGK 111,119.60 and food crops and fruit trees.

Structures (houses) PGK5,300.00

Relocation allowance including PKG 26,000 shifting allowance

Unimproved Land Value PGK4,785,200.00 Total Compensation and Other PGK 4,901,619.60 Allowances Payable Contingency PGK2,600,000.00

Administration and monitoring PGK89,380.40

Overall total PGK7,570,000

81. This budget does not reside within NAC and a proposed Submission will need to be made from the Minister for Civil Aviation to the National Executive Council (NEC) for funding to be made available for the land acquisition.

a. Flow of funds

82. Funds for land or other productive assets to be acquired will be paid directly to APs by NAC. This will ensure considerably greater accountability and transparency than being disbursed by other means. Payment for temporary use of land during project implementations made directly by the contractor to local APs based on an agreement between the two parties and consistent with the safeguards policy approved in the project.

b. Justification for Calculating Compensation Rates and Other Cost Estimates

83. GoPNG together with NIPA is financially responsible for all resettlement activities as per the ADB Policy. Compensation rates have been based on a methodology prepared by DLPP in 2009 and 2011 because at that time the Valuation Schedule 2013 was not available to use. Valuation was done with assistance from the District Land Officer as the agreed rate for NAC and GoPNG to pay the APs. Adjustments will be made to the identified rate through applying inflation rate to reflect the current market prices at the time the payment will be made.

K. Institutional Arrangements

a. Responsibilities and Mechanisms for Carrying out Resettlement Plan

84. NAC will be both the Executing and Implementing Agency for this Project and it will delegate NAC office in New Ireland Province (NIP) to oversee day-to-day activities related to the implementation of RP. The Safeguard Officer of PIU will oversee the payment of the crop and structures and will be liaising with NIPA twice a quarterly basis prior to and during project implementation. During project implementation, specific daily issues will be captured by the NAC Officer for Kavieng Airport. This will also constitute the RP monitoring program. The Safeguard Officer of PIU will be assisted by an intermittent International Safeguard Specialist with resettlement expertise to implement and monitor RP. Safeguards activities have included to date:

 Collaboration with and assistance to the District Land Officer to undertake their work to comply to the Project’s policies and ADB requirements.  Provision of resources, including where necessary NAC expertise or contracted expertise, to carry out the Inventory of Loss (IOL) and Detailed Measurement GoPNG Survey (DMS) if needed.  Collaboration with and assistance to the Provincial Land Officer and/or District Land Officer for consultations and agreements with affected landowners or land-users.  Facilitation of consultations with affected communities and ensuring that all stakeholders are informed about the Project, its policies and procedures; ensure that all requirements concerning public disclosure of the provisions for land acquisition and compensation; and, overseeing and monitoring the grievance redress process.  Reviewing and endorsing the draft RP prior to submission to the ADB for approval, ensuring that all matters related to land acquisition and other forms of compensation are complete and correctly reported upon.

85. Other NAC roles include:

 Monitoring the process of allocation and disbursal of funds for compensation at both the national and provincial levels and ensure that funds are available and compensation is paid in a timely manner.  Undertake all other activities including the monitoring of land acquisition and other productive assets’ activities.

86. NIPA including the PLO and DLO will collaborate with NAC to plan, implement, and monitor land acquisition activities. The responsibilities include:

 Undertake cadastral surveys of land required permanently for the Project and estimate the area of land required for temporary acquisition by the Project.  Negotiate and sign a Land Compensation and Acquisition Valuation Report (LCAVR) for the acquisition/use of customary land with the clan leaders and affected landowners and/or land-users.

 Consult with and advise affected communities about the Project, the policies and procedures when land is required and the rights and responsibilities of directly

affected people and other indirectly affected peoples.

87. The New Ireland Provincial Administration is responsible to ensure that all NAC funds are allocated and disbursed to pay compensation. The payment of these funds will be made by NAC. Local Level Government Ward Councillors will facilitate all consultations with local communities, affected people, and other stakeholders. They will be responsible for collaborating with NAC to organize and carry out these consultations.

b. Institutional Capacity Building Program

88. During the PPTA it was concluded by NAC in Port Moresby that its staff who would be involved in implementing this RP require more training in the ADB’s social safeguard policies and procedures because this project will be the first one with land acquisition and resettlement to be implemented by NAC under CADIP. The project will provide consultancy support via International Social Safeguards Specialist to roll out necessary trainings and support to build safeguards implementation and monitoring capacity within NAC.

c. Role of Civil Society Groups

89. While there are some civil society groups in the Project area, they are not eligible for RP purpose. However, there are at least two Port Moresby based NGO groups - Centre for Environment, Law and Community Rights (CELCOR) and Environment Law Centre (ELC) - that are non-sectarian in nature and have a good understanding of both gender and indigenous people’s development issues and are better able to work more effectively with local communities than other NGOs. They are also more cost effective. This NGO however will need to be checked out by NAC to ensure that they are an appropriate organization to work with. NAC intends to undertake the monitoring itself but if APs feel NAC is less than diligent the latter will invite one of these NGOs or if a similar NGO can be found in New Ireland Province to undertake subsequent monitoring and report to NIPA, NAC and APs of findings and recommendations that is agreed by all parties concerned.

90. Civil Society Organization (CSO) and Non-Government Organization (NGO) will be engaged by NAC and the contractor to carry out awareness on HIV/AIDs and sexually transmitted diseases during construction. They will also be involved in awareness for communicable diseases to the surrounding town communities. NAC will continue existing collaboration with CSO, NGOs to talk to mothers in regards to the utilisation of the mini market to be established. NAC and CSOs will carry out awareness to the general public on Airport Safety Regulations

d. Involvement of Women’s Groups in Resettlement Planning and Management

91. NAC will ensure that women will not be disadvantaged during the implementation of RP particularly ensuring that women will be paid equally to men APs and will have equal access to employment opportunity from the project.

L. Implementation Schedule

92. The implementation schedule for land acquisition activities to (i) update the RP; (ii) implement the RP; and, (iii) monitoring activities is as follows (Table 9):

TABLE 7: IMPLEMENTATION SCHEDULE

S. N ACTIVITIES SCHEDULE Finalize Resettlement Plan 2016

1 Confirmation of Land Compensation and Valuation Acquisition Completed Report with DLPP and APs 2 Confirm land requirements based on engineering design Completed 3 Getting authorization from Department of Land for land survey Completed 4 Follow up consultation with affected communities and Completed agreement on land use/acquisition 5 Survey of land and submission to Surveyor General for Completed registration 6 Ask PLO/DLO to compile LIR (including valuation of land and Completed improvement) 7 Submission to Department of Provincial Affairs for certificate Completed of alienability to be signed by Secretary and affected LLGs 8 Valuer General verifies the land valuation Completed 9 NAC updates the draft RP in consultation with landowners, pending and on- including agreement on compensation rate/package with going landowners, and discloses updated RP to APs. 10 NAC submits the updated RP to ADB for approval and posting Mid- April 2016 on ADB website 11 ADB no-objection to RP Mid-April 2016 12. Update RP and submit to ADB December 2016 13. ADB no-objection to updated RP December 2016 14 NAC issues cheques to PLO for execution of land acquisition January, 2017 and payment of compensation 15 PLO completes land purchase and issue Completed Land January, 2017 Acquisition documents Resettlement Plan Implementation

16 NAC submits to ADB the land acquisition completion report February 2017 17 Award of civil works contract March 2017 18 Clearance of acquired land March 2017 19 Start of civil works (only after compensation and allowances March 2017 payment) Monitoring Plan

20 NAC establishes AP socio-economic baseline Completed 21 NAC submits progress report to ADB on implementation of RP Six Monthly 22 NAC conducts post-resettlement survey and final monitoring March 2018 report

M. Monitoring and Reporting

93. NAC will monitor all activities associated with land acquisition and payment of compensation to APs. The scope of monitoring includes: (i) compliance with the agreed policies and procedures for land acquisition; (ii) prompt approval, allocation and disbursement of compensation payments to APs, including if necessary supplemental compensation for additional and/or unforeseen losses; and, (iii) remedial actions, as required. The monitoring will also cover the social impacts of the project and whether APs are able to restore, and preferably improve, their pre-project living standards, incomes, and productive capacity. A monitoring and evaluation program utilizing the following indicators has been finalized on the understanding it can be subject to change, including suggestions by APs of what they consider of more relevant to their livelihoods than are considered

34 relevant by other stakeholders. The final monitoring and evaluation indicators are as follows (Table 10):

TABLE 8: THE FINAL MONITORING AND EVALUATION INDICATORS

Type of Indicator Indicator Examples of Variables Staffing No of PMU staff by job function Engagement of Safeguards Staff and training Consultation, Participation, No of other agency officials available for and Grievance Resolution tasks No of consultation and participation programs held with various stakeholders

Procedures in Operation No of field visits by PMU Staff Process No of civil society groups participating in Indicators Project Effectiveness of compensation/assistance delivery system Coordination between PMU and GoPNG agencies, project supervision consultants, and civil society groups Households No of households affected Structures No of households receiving agreed Economic Trees and compensation for trees and crops Output Crops No of special assistance programs to Indicators vulnerable households (if required) Assistance to APs Employment status of households having a formal job Employment status of households being Impact self-employed Indicators Household Earning No of households receiving income Capacity enhancement skills training Number of women engaged as waged workers by the Project Type of Project-related skills women received training in Special Assistance to Average wage of women employed on Women Project compared to that of men Increase in market-based incomes of women traders Increase in visits by GoPNG service providers

Other Livelihood Indicators

94. NAC will prepare and submit semi-annual monitoring reports to ADB as part of project performance monitoring. NAC will also submit a project land acquisition completion report to ADB when compensation has been paid.

95. NAC is committed to ensuring best practices in accountability and transparency during the implementation of this Project but as argued elsewhere in this RP if aggrieved APs are dissatisfied with the monitoring processes and outcomes undertaken by NAC it will appoint an external monitoring agency to address APs concerns.

N. Annexes

Annex I: Consultation Photos

PHOTO 1: CONSULTATION WITH THE NEW IRELAND PROVINCIAL ADMINISTRATION

PHOTO 2: THREE OF THE STRUCTURES THAT WILL BE RELOCATION

PHOTO 3: CONSULTATION WITH DUDA KAMAPEKAN &FAMILY AROUND THE HOUSES (PHOTO 2)

A nnex II: Consultation Letter TO NIPA

A nnex III: Support letter from Member for Kavieng

Annex IV – XIV: Listing of Affected Crops, Trees &Structures for Portion 1049C, 1160C & 1164C according to clan groups

Annex IV: KALAPOK

Annex V: PANAMAK

Annex VI: PANAVUL

Annex VII: PANAGUMI

Annex VIII: KULAGAVUS

Annex IX: LOVULIT

Annex X: LISUAK

Annex XI: VUVUT/PANAGUIS

Annex XII: LOKAU

Annex XIII: PANATOVO

Annex XV – XX: COI AND LCAVR

Annex XV: Certificate of Alienation for Airport Land - Phase I

Annex XVI: Certificate of Alienation for Airport Land - Phase II

A nnex XVII: Land Compensation and Acquisition Valuation Report Phase I

Annex XVIII: Land Compensation and Acquisition Valuation Report Phase 1 of 2