RESETTLEMENT PLAN THANKOT-CHAPAGAON-BHAKTAPUR 132 kV TRANSMISSION LINE PROJECT for the RURAL ELECTRIFICATION, DISTRIBUTION AND TRANSMISSION PROJECT in NEPAL Nepal Electricity Authority This report was prepared by the Borrower and is not an ADB document. May 2004 NEPAL ELECTRICITY AUTHORITY (AN UNDERTAKING OF HIS MAJESTY’S GOVERNMENT OF NEPAL) TRANSMISSION AND SYSTEM OPERATIONS TRANSMISSION LINE/SUBSTATION CONSTRUCTION DEPARTMENT THANKOT-CHAPAGAON-BHAKTAPUR 132 Kv TRANSMISSION LINE PROJECT RURAL ELECTRIFICATION, DISTRIBUTION AND TRANSMISSION PROJECT (ADB LOAN NO. 1732-NEP: (SF) & OPEC LOAN NO. 825 P) INDEPENDENT ASSESSMENT OF ACQUISITION, COMPENSATION, REHABILITATION PLAN (ACRP) FINAL REPORT Prepared by: Dr. Toran Sharma Mr. Hari P. Bhattarai (Independent Consultants) May 2004 Foreword The independent consultants as per the request of ADB to NEA prepare this Resettlement Plan (RP). This RP is based on the data already collected by NEA and its consultants at different times and the Environmental Impact Assessment (EIA) and ACRP with short Resettlement Plan Reports of the Transmission Line Project, approved by the concerned ministries of HMG and reviewed by ADB. The independent consultants have reviewed all the available reports in the context of ADB Guideline for Resettlement. In the process of independent assessment, the consultants made revisit of the T/L alignment and relocate house structures. Similarly, plant/vegetation and crop inventories have been prepared to assess the losses. Extensive discussion were held with the NEA officials for the development of the resettlement policy framework for the project, taking consideration of the HMG’s rules, regulations and practices and ADB policy on resettlement. The report presented is in the ADB report format and addresses the issues as per the ADB requirement. The consultants extend their gratitude to Mr. M.P. Khakurel (Project Manager), Mr. S.K. Mishra (Engineer) and Mr. P.D. Ulak (Assistant Administrative Officer) of Thankot–Chapagaon–Bhaktapur T/L project, NEA for providing all needed information and help to expedite independent assessment. Report is organized in XII Chapters and Six Annexes with an executive summary. The content of each chapter is briefly presented below: Chapter I describes the salient features of the project. Chapter II discusses on the efforts made to minimize the resettlement from the project activities. Chapter III presents the ADB and HMG policies for resettlement and describes the legal provisions of HMG including the practices of resettlement in the past and ongoing T/L projects implemented in Nepal. Resettlement policies for the proposed Thankot-Chapagaon-Bhaktapur 132 kV T/L project are briefly described. Chapter IV details the project-affected areas of the T/L project. Chapter V lists the project affected families/persons of the T/L project. Chapter VI presents the findings of the socio-economic study of the project affected communities and the project relocates. Chapter VII discusses on the socio-economic impacts of the project and mitigation measures to minimize the impacts. Chapter VIII describes the mechanism of stakeholders’ consultations and dialogues adopted for the RP preparation. Chapter X presents the institutional organization to accomplish the RP. Chapter XI presents the implementation schedule of RP. Chapter XII discusses monitoring and evaluation of RP. Chapter XIII presents the compensation/benefits to AFs/APs and RP cost estimates. ACRONYMS % Percentage ADB Asian Development Bank AFs Affected Families APs Affected Persons CBOs Community Base Organization CDO Chief District Officer CFC Compensation Fixation Committee DC Disturbance Compensation DDCs District Development Committees EIA Environmental Impact Assessment GI Galvanized Iron ha Hector HMG/N His Majesty’s Government of Nepal ITR Income Tax Return kg Kilogram km Kilometer kV Kilo Volt LAO Land Acquisition Officer m Meter M2 Meter Square MoPE Ministry of Population and Environment MT Metric Tonne NEA Nepal Electricity Authority NEPAP Nepal Environmental Policy and Action Plan NGOs Non-governmental Organizations Nos. Numbers NRs Nepali Rupees PM Project Manager PMO Project Management Office ROW Right of Way RP Resettlement Plan SLC School Leaving Certificate Sq. ft. Square Feet T/L Transmission Line TA Transportation Allowance VDCs Village Development Committee WECs Water and Energy Commission Secretariat TABLE OF CONTENTS FOREWORD ACRONYMS TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER I: THE PROJECT 1 1.1 Rationale 1 1.2 Status of Resettlement Design 1 1.3 Project Description 2 CHAPTER II: EFFORTS TO MINIMIZE RESETTLEMENT 4 2.1 Efforts in the Phase of Alignment Survey 4 2.2 Efforts Planned During Implementation 4 CHAPTER III: POLICY AND LEGAL FRAMEWORK 5 3.1 ADB Policy on Environment 5 3.2 HMG Laws and Policy 5 3.3 Resettlement Policy Framework for Thankot-Chapagaon-Bhaktapur 132kV T/L Project 9 3.3.1 Resettlement Policies 10 3.3.2 Compensation Policy for the Project 10 CHAPTER IV: THE PROJECT AFFECTED AREAS 15 CHAPTER V: AFFECTED FAMILIES/PERSONS (AFS/APS) 18 CHAPTER VI: SOCIOECONOMIC STUDY 20 6.1 Methodology 20 6.2 Results of Socio-economic Survey 20 6.2.1 Project Affected Families 20 6.2.2 Project Affected Relocatee Families 23 CHAPTER VII: SOCIOECONOMIC IMPACTS AND MITIGATING MEASURES 26 CHAPTER VIII: COMMUNITY CONSULTATION AND DIALOGUES 27 8.1 Project Stakeholders 27 8.2 Mechanisms for Stakeholders’ Participation 27 8.2.1 Dialogues/Consultation 27 8.2.2 Information Campaign 27 8.2.3 Local Government Endorsement 27 8.3 Role of NGOs and CBOs 28 CHAPTER IX: RESOLUTION OF CONFLICTS, APPEALS AND GRIEVANCE PROCEDURES 29 9.1 Setting Up a Complaint Desk 29 9.2 Procedure 29 CHAPTER X: INSTITUTIONAL ORGANIZATION 30 10.1 Organizational Linkages and Responsibilities 30 10.1.1 Project Management Office (PMO) 30 10.1.2 Account Section, PMO 30 10.1.3 Relocatees 30 10.2 Institutional Capability Building and Strengthening 30 CHAPTER XI: IMPLEMENTATION SCHEDULE 31 11.1 Relocation Schedule 31 11.2 Relation of Relocation Activities to Project Schedule 31 11.3 Procedures for RP Implementation 31 11.4 Involvement of APs, Local Government and NGOs 32 11.4.1 APs 32 11.4.2 NGOs 32 11.4.3 Local Governments 32 CHAPTER XII: MONITORING AND EVALUATION 33 12.1 Internal Monitoring 33 12.2 External Monitoring 33 12.3 Post-Relocation Evaluation 33 CHAPTER XIII: COMPENSATION/BENEFITS TO AFS/APS AND COST ESTIMATES 34 13.1 Compensation/Benefits to AFs/APs 34 13.2 Cost Estimates 35 13.2.1 Relocatee 35 13.2.2 Payments for Land Acquisition and Land Use Restriction 36 13.2.3 Payments for Crops and Trees 36 13.2.4 External Monitoring 37 13.2.5 Summary 37 REFERENCES 38 ANNEXES ANNEX IV – 1: Vegetation Inventory Report ANNEX V – 1: Land Parcel and Land Ownership ANNEX V – 2: Photographs of Affected Structures ANNEX VI – 1: Socio-economic Data Tables (Project Affiliated Families) ANNEX VI – 2: Socio-economic Data Tables (Relocatees) ANNEX X – 1: Implementation Schedule RESETTLEMENT PLAN Thankot-Chapagaon-Bhaktapur 132 kV Transmission Line Project EXECUTIVE SUMMARY 1. This resettlement plan (RP) has been prepared for the households affected by the Thankot- Chapagaon-Bhaktapur 132 kV Transmission Line Project, the construction sites of which are located in the districts of Kathmandu, Bhaktapur and Lalitpur. 2. The project aims to increase the power transfer capacities of transmission lines of the Kathmandu Valley in order to accommodate the planned additional power and load growth in the Valley. Additionally, it also helps enhance the reliability of power supply in the Valley. 3. The main project components, which will displace people and properties, are the construction of 132 kV overhead Transmission Line (T/L) with a total length of 28.4 km and two new sub-stations in Kathmandu and Lalitpur districts. 4. About 2,424 households residing within the T/L Right-of-Way (ROW) and substation areas will be affected which includes 1,651 landowners, 764 tenants, 6 landowners with residential structure and 3 tenants with residential structures. 5. Of the affected only 9 households require relocation. 6. House/structure owners will also be paid for the replacement cost of their houses/structures along with the associated land plots. 7. Relocatee-households will be granted an additional relocation package consisting of disturbance compensation and transportation allowance to help them resettle in new places. 8. Landowners without tenants will be paid for the land occupied permanently by the tower pads under T/L ROW and substation area at the market based prices. Loss of trees will also be paid at the market-based prices. 9. Landowners with tenant will be paid for land occupied permanently by the tower pads under T/L ROW and substation area at 50% of the market prices and remaining 50% will be paid to the tenants. Besides, tenants will also be paid for the damaged crops and plants at market-based price. 10. Landowners without tenants will be paid for the land restricted for use under T/L ROW at the 10% of market based prices. The loss of crops and trees will also be paid. 11. Landowners with tenant will be paid for land restricted for use under T/L ROW at 50% of the 10% market prices and remaining 50% of the 10% will be paid to the tenants. Besides, Tenants will also be paid for the crops and plants. 12. A third party monitoring team will be contracted by the project management office to undertake the external monitoring of RP implementation. 13. The project will provide the relocation budget estimated at NRs 136.39 million and will implement this RP with the assistance of His Majesty’s Government of Nepal. Chapter I THE PROJECT 1.1 Rationale The Nepal Electricity Authority has undertaken the Thankot-Chapagaon-Bhaktapur 132 kV T/L Project to complete the planned 132 kV T/L ring in Kathmandu Valley which helps enhance the reliability of power supply, decreases voltage drops and energy losses and supports rural electrification of 19 Village Development Committees (VDCs) of Lalitpur district.