Semi-annual Social Safeguard Monitoring Report August 2013 SC 102035 IND: MFF-North Karnataka Urban Sector Investment Program This Compliance and Due Diligence Report for Social Safeguards 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. Contents INTRODUCTION 1 COMPLIANCE REVIEW 1 A. Package I: Hubli-Dharwad 1 1. Hubli 1 2. Dharwad 3 3. Gadag-Betegeri 3 4. Haveri 4 5. Ranebennur 5 6. Davangere 6 7. Bijapur 6 B. Package II: Belgaum 7 8. Gokak 7 9. Nippani 8 10. Badami 8 11. Ilkal 9 12. Rabakavi Banahatti 10 13. Jamakhandi 10 C. Package III: Gulbarga 11 14. Gulbarga 11 15. Shahabad 12 16. Bidar 12 17. Basavakalyan 14 18. Yadgir 15 D. Package IV: Bellary 17 19. Raichur 17 20. Sindhunur 18 21. Koppal 19 22. Gangawathi 19 23. Hospet 19 24. Bellary 21 25. Chamarajanagar 21 Figures Figure 1: Site Photos-Hubli .................................................................................................................... 2 Figure 2: Site Photos-Gadag-Betegeri ................................................................................................... 3 Figure 3: Site Photos-Haveri .................................................................................................................. 4 Figure 4: Site Photos-Rannebennur ...................................................................................................... 5 Figure 5: Site Photos-Bijapur ................................................................................................................. 6 Figure 6: Site Photos-Gokak .................................................................................................................. 7 Figure 7: Site Photos-Nippani ................................................................................................................ 8 Figure 8: Site Photos-Badami ................................................................................................................ 9 Figure 9: Site Photos-Ilkal ...................................................................................................................... 9 Figure 10: Site Photos-Gulbarga ......................................................................................................... 11 Figure 11: Site Photos-Shahabad ........................................................................................................ 12 Figure 12: Site Photos-Bidar ................................................................................................................ 13 Figure 13: Site Photos-Basavakalyan .................................................................................................. 15 Figure 14: Site Photos-Yadgir .............................................................................................................. 16 Figure 15: Site Photos-Raichur ............................................................................................................ 17 Figure 16: Site Photos-Sindhunur ........................................................................................................ 18 Figure 17: Site Photos-Hospet ............................................................................................................. 20 Figure 18: Site Photos-Bellary ............................................................................................................. 21 Figure 19: Site Photos-Chamarajanagar ............................................................................................. 22 Annexes Annexure 1: Details of Government Lands Annexure 2: List of Affected Persons (APs) and Resettlement Plan (RP) Implementation Timeline Compliance and Due Diligence Report-NKUSIP INTRODUCTION 1. Overview. Asian Development Bank (ADB) funded North Karnataka Urban Sector Investment Program (NKUSIP) is financing investment in the sectors of (i) water supply; (ii) sewerage and sanitation; (iii) urban drainage; (iv) urban roads; (v) poverty alleviation; (vi) non-municipal infrastructure inclusive of development/conservation of lakes, expansion of fire services, development of tourism and sports facilities; (vii) institutional development; and (viii) investment program assistance. The overall development goal of the NKUSIP is to facilitate economic growth in the 25 towns of North Karnataka and bring about urban development through equitable distribution of urban basic services to the citizens that are environmentally sound and operationally sustainable. The development purpose is designed to assist Urban Local Bodies (ULBs) to “promote good urban management, and develop and expand urban infrastructure to increase economic opportunities and to reduce vulnerability to environmental degradation and urban poverty”. 2. Summary of LA and R&R Issues. In all Tranches under implementation, during designing of various utilities, precaution was taken to minimize impacts of land acquisition and replacement. A majority of the subproject works/activities involving rehabilitation are accommodated within the existing premises while government lands were made available/utilized for works such as construction of OHTs, ELSRs/GLSRs, Wet wells, Jack Well, Pumping Stations etc. Non municipal infrastructure, fire services, tourism related works etc. are also accommodated within their existing premises or in available government lands. Permanent land acquisition was proposed only where government lands were not available and technical design demanded identified parcel of private land. A majority of such cases were also proposed for direct purchase and were successful by offering consent award (negotiated price between both parties) to affected persons (APs). Wherever permanent land acquisition was unavoidable, resettlement plan (RP) was prepared and LA and R&R activities are undertaken in line with the approved RP. Temporary impacts envisaged during laying of pipelines are also minimized through adequate consultation with the people, giving prior notice of work, providing alternate access, carrying out work during non business hours/night etc. In towns where permanent land acquisition was proposed, subprojects are classified into Involuntary Resettlement Category B while in other towns subprojects are classified into Category C. Some of the key LA and R&R issues identified during compliance reporting include: • Possession of Land and Fencing. It was observed that at many sites though land acquisition process is completed and ownership has been transferred in urban local body’s (ULB) name, ULB has not taken the possession of land. These lands were also not adequately fenced due to lack of funds with the ULB. Moreover, such work is built into contractors cost and is a contractor’s responsibility. This practice has given a chance to APs to continue with cultivation activities at the acquired site (at least wherever civil works are not started or considerably delayed) and again claim for compensation. • Temporary Impacts during Pipelaying. Though it has been indicated that network/pipelines will be laid within the available existing right of way (RoW) of the road or along the natural drain etc., construction activities (excavation, dumping, refilling, vehicle movement) require additional space. Wherever approach/road is narrow and there is an ambiguity in ownership (natural drains etc.) temporary impacts on adjoining private lands are unavoidable. Not 1 identifying and addressing such impacts prior to construction has lead to construction delays and financial implications. 3. Summary of Proposed Actions. • Support to APs during early stages of Land Acquisition. Land acquisition (LA) process follows a structured process and requires stipulated time for field verification, verification of ownership records, estimation of losses, issue of public notifications, addressing of complaints/grievances etc. As per the ADB’s safeguard policies and NKUSIP’s Resettlement Framework it is mandatory to complete LA and R&R activities before taking possession of land and start of civil works. However, it has been observed in almost all LA cases under NKUSIP that the affected people (APs) were compensated much later after the land possession was taken. Among these also include cases that are delayed due to court intervention for enhancement of compensation for losses incurred. Many of the consulted landowners in such cases were of opinion that accepting lower compensation reduces merit of their case in Court and hence they preferred to wait. Discussion with many APs also indicated that though they were well informed, they did not had the support during initial stages (when land acquisition was being processed) like the support they receive during RP implementation from Implementing NGO as most of them are not well educated and do not understand the legalities involved. • Fencing of Acquired Lands. All government lands that are identified for subprojects and all private lands for which acquisition process is completed needs to be fenced to avoid possibility of further encroachments. ULB should also place sign board at the site indicating project information. • Preparation of Intermediate Corrective Action Plans. Towns where temporary impacts are envisaged/identified will be required to prepare corrective action plans to mitigate/address incurred losses. 2 Compliance and Due Diligence Report-NKUSIP Status of Social Safeguards Compliance for Tranches 1, 2, and 3 by Contract Package (as of 27 July 2013) Package