MINISTRY OF PROVINCIAL COUNCILS AND LOCAL GOVERNMENT Local Government Enhancement Sector Project (Asian Development Bank Funded) Loan No. 3431 SRI DUE DILIGENCE REPORT (Social Safeguards) March 2017 CONSTRUCTION OF PUBLIC MARKET BUILDING AT WADDUWA (Package No. WP-AF-PAD-07) PANADURA PRADESHIYASABHA WESTERN PROVINCE SRI LAKA Sub- Project Coordination Unit Local Government Enhancement Sector Project - Additional Financing Western Provincial Council - Sri Lanka DUE DILIGENCE REPORT – SOCIAL SAFEGUARD CURRENCY EQUIVALENTS (As of 1 December 2016,) Currency unit = Sri Lankan Rupee/s (LKR) LKR 1.00 = USD 0.00687 USD 1.00 = LKR 145.50 ABRAVATIONS ADB Asian Development Bank AF Additional Financing CBO Community Based Organizations CKD Chronic Kidney Disease DDR Due Diligence Report DS Divisional Secretariat GND Grama Niladhari Division GRC Grievance Redress Committee GRM Grievance Redress Mechanism IP Indigenous People LGESP Local Government Enhancement Sector Project NIRP National Involuntary Resettlement Policy NWSDB National Water Supply and Drainage Board PMU Project Management Unit PS Pradeshiya Sabha RAP Resettlement Action Plan SPCU Sub Project Coordinating Unit SPS Safeguard Policy Statement Page | i DUE DILIGENCE REPORT – SOCIAL SAFEGUARD CONTENTS Executive Summary: .................................................................................................................. 1 I. Background ....................................................................................................................... 2 A. Introduction: ................................................................................................................... 2 B. Proposed Sub-Project Component ................................................................................. 2 II. Sub-Project Description: .................................................................................................. 2 III. Legal and Policy Framework: ........................................................................................... 4 IV. Methodology ...................................................................................................................... 4 V. Field Work - Surveys and Public Consultations .............................................................. 4 A. Field visits: ..................................................................................................................... 4 B. Stakeholder / Public Consultation .................................................................................. 5 VI. Resettlement Impacts ....................................................................................................... 7 A. Scope of Land requirements .......................................................................................... 7 VII. Socio-Economic Profile .................................................................................................... 7 VIII. Information Dissemination ............................................................................................... 8 IX. Grievance Re-dress Mechanism ...................................................................................... 8 A. First tier of GRM. ........................................................................................................... 9 B. Second Tier of GRM. ..................................................................................................... 9 C. Third tier of GRM. ........................................................................................................ 10 ANNEXURE: Annexure 1 : Location Map and Photographs of Subproject area ............................................... 12 Annexure 2 : Legal and Policy Framework – Involuntary Resettlement ...................................... 14 Annexure 3 : Resettlement and Indigenous People Impact Screening ....................................... 21 Annexure 4 : Ownership Confirmation letter and Deed ............................................................... 24 Annexure 5 : Consent of Vendors 29 Annexure 6 : Minutes of the Public Consultation meeting 32 Annexure 7 : Attendance of Public Consultation meeting ......................................................... 355 Annexure 8 : Pictures of the community consultation meetings .................................................. 39 Annexure 9 : Grievance Redress Mechanism ............................................................................ 40 Page | ii DUE DILIGENCE REPORT – SOCIAL SAFEGUARD Due Diligence Report for the Construction of Two Storied Market Building at Wadduwa, for Panadura PS. Executive Summary: The proposed subproject details indicate the construction of a new two-story market building while adopting a proper waste treatment system specially in order to manage the waste water generated from the fish stalls and the sewer systems. The main administrative unit of the Panadura Pradeshiya Sabha is currently operated at an area closer to Wadduwa town. And the main market building is situated at the heart of Wadduwa town surrounded by the many public and private commercial places, government institutions and the areas where the people are gathered for their daily needs. Initial screening of resettlement and indigenous people, show that the subproject is categorized as „C” in both aspects. The sub project details indicate that the activities involve for the construction of the proposed market building will be within the available land at Wadduwa under the ownership of Panadura Pradeshiya Sabha. Therefore, no requirement for acquisition of land and there will be no displacement of people due to the sub project proposed. In conclusion, there are no negative impacts identified on the society, economy, employment or indigenous people by the sub project activities. For instead, the subproject would have significant direct and indirect positive social and economic benefits to the public as well as the staff of the Pradeshiya Sabha. The facilities that to be provided through the project will create more comfortable working environment and improved service delivery to the public Page | 1 DUE DILIGENCE REPORT – SOCIAL SAFEGUARD I. Background A. Introduction: The Local Government Enhancement Sector Project (LGESP) is a key infrastructure initiative of the Government of Sri Lanka, which aims to improve local infrastructure, and services delivered effectively by selected local authorities in less developed areas in Sri Lanka. Participating local authorities will implement subprojects in the areas of roads and bridges, water supply and sanitation, drainage, solid waste management, and other basic facilities including health centers and public markets. Funds for these subprojects will be obtained as grants from the Ministry of Provincial Councils and Local Government. To continue the support to the initiatives of the Government through the original project and to solve the problems in areas affected by Chronic Kidney Diseases and further the support in service delivery improvement and capacity building in local authorities, ADB and government have agreed on an additional financing component to the original project which will (i) support implementation of water supply schemes in areas affected by chronic kidney diseases and enable the availability of safe drinking water to the vulnerable section of these areas; (ii) Support infrastructure delivery in 29 additional Pradeshiya Sabhas; and (iii) extending the support for capacity building initiatives under the project. The filed observations in the subproject for which this DDR is prepared indicate that there would be no resettlement impacts or there is no presence of Indigenous people in this subproject area. B. Proposed Sub-Project Component This Due Diligence Report (Social Safeguards) is prepared for the Project, Construction of proposed two storied Building at Wadduwa for Panadura Pradeshiya Sabha sub- project under the additional financing component of the Local Government Enhancement Sector Project- Additional Financing Considering the need of improving existing infrastructure facilities to provide efficient service delivery to the public in Panadura PS area, a new building with required facilities for a market complex is proposed in the land belongs to PS at Wadduwa area. The main market complex including shops, groceries, and separate stalls for fish, meat and vegetable are proposed under the sub project. However, considering the present conditions of the old building and the request made by the trader‟s union, the necessary actions being taken to construct this new shopping complex with required facilities with the assistance of LGESP. II. Sub-Project Description: The new two storied market building is basically designed for providing more facilities and comfortable business environment for venders who are operating their business in the old market. Same time it is expected to provide efficient and effective services for the public. In addition, it will help the PS to increase its income by renting out the stalls/shops to the venders. However, there will be fifteen numbers of stalls in the ground floor within the Page | 2 DUE DILIGENCE REPORT – SOCIAL SAFEGUARD area of 419.4 m2 while eighteen numbers of stalls will be designed for the first floor within the area of 450 m2 including a passage. Table 1 : Details of the main project components of the sub project Stalls NOs Size (M) Area(m2 ) Ground Floor (15 stalls) 419.4 No. 01 to No. 05 3.0 x 3.7 x 5 55.5 No. 06 (with storage 3.0 x 3.7 11.1 area) No. 07