Feasibility Report 4 Task 3 – Resettlement Policy Framework Detailed Feasibility Studies:Draft Transmission Feasibility Study Report Line ProjectsTransmission in Nepal Projects in Nepal Volume 3 Volume 6 Monitoring and Evaluation MCC-15-BPA-0032, MCC-16-CL-0002 Prepared for: March 2017 Millennium Challenge Corporation 1099 14th Street NW, Suite 700 Washington, DC 20005-3550 MCC-16-CL-0002 Prepared by: 1320 North Courthouse Road, Suite 600 Arlington, VA 22201 Tel 703.387.2100, Fax 703.243.0953 December 6, 201 Feasibility Study: Nepal Priority Transmission Line Projects Volume 3 (Report) Resettlement Policy Framework Prepared for: Millennium Challenge Corporation 1099 14th Street, NW Washington, DC 20005 MCC-15-BPA-0032 -MCC-16-CL-0002 Prepared by: Tetra Tech ES, Inc. 1320 N. Courthouse Road, Suite 600 Arlington, VA 22201 March 2017 Consultants Team David Keith BPA Program Manager Tetra Tech Rakesh Kumar Goyal Project Manager Tetra Tech Terri Stiffler Task Leader Tetra Tech Rabin Dhakal Team Member Tetra Tech Apsara Chapagain Team Member Tetra Tech Bill Crowley Team Member Tetra Tech Anna Murphy Team Member Tetra Tech Mark Fobert Team Member Tetra Tech Sara Kreisel Team Member Tetra Tech Mike Betteker Team Member Tetra Tech Hope Herron Team Member Tetra Tech Dr. Gandikota Ananda Team Member Tetra Tech Kripa Tiwari Team Member Tetra Tech Milan Wagle Team Member Tetra Tech Bikash Gelal Team Member Tetra Tech Ritu Pradhan Shrestha Team Member Tetra Tech Rishi Koirala Local Consultant Contents EXECUTIVE SUMMARY .................................................................................................................................. 1 1. DESCRIPTION OF THE PROJECT .............................................................................................. 11 1.1 BACKGROUND ........................................................................................................... 11 1.2 PURPOSE OF THE RESETTLEMENT POLICY FRAMEWORK ........................................................ 12 1.3 DEFINITIONS AND SCOPE OF INVOLUNTARY RESETTLEMENT................................................... 12 1.4 DETAILED DESCRIPTION OF PROJECTS, ESTABLISHMENT OF THE RESETTLEMENT CORRIDOR OF IMPACT (RCOI), AND ACTIVITIES LIKELY TO RESULT IN INVOLUNTARY RESETTLEMENT ............................ 16 1.4.1 T2’ .......................................................................................................................... 32 1.4.2 T3 ........................................................................................................................... 33 1.4.3 T8 ........................................................................................................................... 36 2. LEGAL/REGULATORY FRAMEWORK AND GAP ANALYSIS ...................................................... 37 2.1 GOVERNMENT OF NEPAL LAWS, POLICIES, AND REGULATIONS ............................................... 37 2.2 INTERNATIONAL FINANCE CORPORATION PERFORMANCE STANDARD 5 (IFC PS5) ...................... 45 2.3 GAP ANALYSIS ........................................................................................................... 47 3. PRINCIPLES AND OBJECTIVES GOVERNING THE RESETTLEMENT PROCESS........................... 57 3.1 OBJECTIVES ............................................................................................................... 57 3.2 PRINCIPLES ............................................................................................................... 57 4. RESETTLEMENT SCREENING/SCOPING, AND ASSESSMENT OF RESETTLEMENT IMPACTS ... 59 4.1 APPROACH ................................................................................................................ 59 4.1.1 Summary and Methodology .................................................................................... 59 4.1.2 Consideration of Indigenous Peoples ....................................................................... 61 4.1.3 Consideration of Dalits and Other Vulnerable Groups .............................................. 63 4.2 NR1 ........................................................................................................................ 64 4.2.1 Socioeconomic and General Characteristics of NR1 .................................................. 64 4.2.2 Resettlement Impacts ............................................................................................. 76 4.3 NR3 ........................................................................................................................ 79 4.3.1 Resettlement Impacts ............................................................................................. 79 4.3.2 Resettlement Impacts ............................................................................................. 83 4.4 NR4 ........................................................................................................................ 85 4.4.1 Socioeconomic and General Characteristics ............................................................. 85 4.4.2 Resettlement Impacts ............................................................................................. 85 4.5 T2’ ......................................................................................................................... 87 4.5.1 Socioeconomic and General Characteristics ............................................................. 87 4.5.2 Resettlement Impacts ............................................................................................. 89 4.6 T3 .......................................................................................................................... 91 4.6.1 Socioeconomic and General Characteristics ............................................................. 91 4.6.2 Resettlement Impacts ............................................................................................. 94 4.7 T8 .......................................................................................................................... 96 4.7.1 Socioeconomic and General Characteristics ............................................................. 96 4.7.2 Resettlement Impacts ............................................................................................. 98 4.8 XB1 ........................................................................................................................ 99 4.8.1 Socioeconomic and General Characteristics ............................................................. 99 4.8.2 Resettlement Impacts ........................................................................................... 102 5. ELIGIBILITY CRITERIA AND ENTITLEMENT MATRIX .............................................................. 104 5.1 ELIGIBILITY .............................................................................................................. 104 6. ASSET VALUATION FRAMEWORK AND METHODOLOGY TO DEFINE COMPENSATION ....... 124 6.1 CATEGORIES OF ASSETS AND VALUATION METHODS ......................................................... 124 6.1.1 Land Acquisition ................................................................................................... 124 6.1.2 Structures ............................................................................................................. 134 6.1.3 Crops .................................................................................................................... 135 6.1.4 Trees .................................................................................................................... 135 6.1.5 Livelihood Restoration .......................................................................................... 140 7. PROPOSED PROCEDURES FOR RESETTLEMENT ACTION PLAN PREPARATION .................... 142 7.1 SCHEDULE AND LINKAGES ........................................................................................... 142 7.2 QUALITY CONTROL, CONSISTENCY, COHERENCE AND TRANSPARENCY .................................... 143 7.3 RAP PREPARATION ................................................................................................... 143 7.3.1 Kick-off Meeting, Inception Report, and Work Plan ............................................... 143 7.3.2 Further Defining the Resettlement Corridor of Impact (RCOI) Including Affected Plots or Area ................................................................................................................. 144 7.3.3 GIS-Linked Database and RCOI Videography .......................................................... 146 7.3.4 Stakeholder Communication Plan ......................................................................... 147 7.3.5 Training and Logistics Planning .............................................................................. 147 7.3.6 Census, Inventory of Assets, Socio-Economic Survey, and Asset Valuation Census and Inventory of Assets ............................................................................................... 148 7.3.7 Eligibility Table and Resettlement Compensation/Entitlement Matrix .................... 150 7.3.8 Participation and Consultation .............................................................................. 150 7.3.9 Compensation Agreements ................................................................................... 151 7.3.10 Compensation Procedures and Mechanisms .......................................................... 152 7.3.11 Resettlement Area Design and Assessment ..........................................................