Due Diligence Report Project Number: 41509-013 January 2017 PNG: Rural Primary Health Services Delivery Project (Loan 2785 and Grant 0259) Prepared by the Department of Health for the Asian Development Bank. This due diligence report 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 judgements as to the legal or other status of any territory or area. Papua New Guinea Rural Primary Health Services Delivery Project DUE DILIGENCE REPORT FOR ACQUISITION of the VATUKELE CHP SITE West New Britain Province January, 2017 1 INDEX Executive Summary Project and Community Health Post Description Vatukele Community Health Post Site - Description and Area Scope of Land Use/Purchase Socioeconomic Information Information Disclosure, Consultations and Participation Grievance Redress Mechanism Applicable Policies and Laws Agreements on Land Use Compensation and Benefits Budget and Sources of Funds Institutional Arrangements Implementation Schedule Monitoring and Reporting ANNEXURES (Available Upon Request) Annex One: Reports of Community Consultations Annex Two: Signed Customary Land Transfer Agreement Annex Three: Land survey of site Annex Four: Land Investigation Report Annex Five: Valuation Report Annex Six: Certificate of Alienability Annex Seven: Sale & Transfer of Land, Deed of Release and Cheque payment Annex Eight: Approved Layout Plan for Community Health Post Annex Nine: Third Party Verification of Land Acquisition Process The image on the cover of this Report depicts the area upon which the proposed Vatukele CHP will be constructed. It is on the edge of Vatukele village on Bali Island off the north coast of West New Britain Province. 2 EXECUTIVE SUMMARY The Rural Primary Health Service Delivery Project (RPHSDP) is a collaboration between the Government of PNG represented by its National Department of Health and the Asian Development Bank, Australian Department of Foreign Affairs and Trade, the OPEC Fund for International Development, the World Health Organisation, the Japanese International Cooperation Agency and UNICEF. The Project is operating in two (2) Districts of each of eight (8) Provinces. The civil works component of the Project (Output 4) involves construction of thirty-two (32) new Community Health Posts, ninety- six (96) new staff houses as well as providing medical equipment and small vehicles (cars, boats, or motorbikes) to support their operation. It will also install or upgrade sanitation facilities, provide waste management facilities and establish renewable energy supplies for those health facilities. The Community Health Post is deemed a Level 2 Health Facility under the PNG National Health Service Standards, 2011 and is required primarily to provide maternal and child primary health services to remote rural populations. Provision is also made for supervised birthing and postnatal inpatient care, short term paediatric and adult inpatient services and for triage, stabilisation and referral to higher level facilities of critically ill clients. A odest Poedue ‘oo is poided to allo eegey ae of taua o seious medical conditions prior to referral and discrete consultation rooms are provided to ensure privacy for clients seeking care or advice for their conditions. The West New Britain Provincial Health Authority has prioritised Vatukele as one of the localities in which to construct a new Community Health Post under Output 4 of the Project. Vatukele Village is located on Bali Island, one of the Bali Witu Group of islands about 120 kilometres north of the West New Britain mainland and 160 kilometres northwest of the Provincial capital, Kimbe. It is most easily accessed by outboard powered dinghy and takes about five to six (5-6) hours of travel time at sea. For this reason, urgent medical evacuations are mostly effected by helicopter to the Kimbe Provincial Hospital on the mainland. Less critical evacuations are effected via the scheduled shipping service which serves the Island three times per week. The immediate catchment population for the proposed Community Health Post is 3221 persons. That includes those people previously served by the nearby Malagai and Jorape Aid Posts. Demand for maternal and child health services to be offered by the Community Health Post will mostly be derived from the estimated 560 children less than 5 years of age and 690 women of child bearing age living in the immediate area as identified through the 2011 Census. It is anticipated that the true catchment population will be closer to 5000 people once the new facility is constructed and commissioned and that it will provide health services for up to fifty (50) people each day. The proposed site for the Community Health Post is known variously as Vunaloto or Vatukele and is registered as Portion 697C, Milinch of Bali, Fourmil of Vitu, Talasea District, West New Britain Province. It consists of 1.111 hectares (in some places noted as 1.119) and is mostly uncleared although there has been some gardening undertaken in the past at the front of the Portion. It is desied i the Lad Iestigatio ‘epot as easoaly flat ith little gadiet ascending/descending, fertile but exposed to climate chages. The site was selected by the customary owners because it is largely unused for other purposes and is close to the site of the existing Aid Post. 3 The extent of the site was determined by the customary owners and the owners of adjoining land in the company of the Surveyor prior to survey on 15th May, 2014. The boundaries are clearly marked and are consistent with the decision of the local landowners. The owners of contiguous land have also declared that they have no interest in or rights by native custom to the surveyed land. The land was formerly owned by members of the Maremareke, Nalagaro, Vunagirimo and Vatu-Valaka Clas ad had ee auied y peaet esidet. Thei ights to the lad ae ot otested. The Clan members consented to sell this land to the State through the Land Investigation Report dated 27th August, 2015. Mr. Tomu Kavui, Mr. Kaue Kalaho, Mr. Puana Rabui and Mr. Alphonse Kalu epesetig eah of the Clas haig a iteest i the lad ae aed i the “hedule of Oes, “tatus ad ‘ights to the Lad setio of the Lad Iestigatio ‘epot ad ae the oiated as epesetaties ad Agets by the owners for the purpose ofexecuting a Transfer/Lease to the Administration over that piece of land known as Vunaloto containing approximately 1.119 hectares and situated in the District of Talasea of West New Britain and we do authorise the above agents to accept on behalf all moneys and considerations paid by the said Administration in connection with the poposed Tasfe/Lease of the said piee of lad. The Land Investigation Report acknowledges the increasing pressure upon arable land on Bali Island but also notes that the customary owners were prepared to sell the land outright as it is to be used for a public purpose. Most of Portion 697C has been vacant for many years and therefore the immediate effects on households are not significant and potential losses from selling the land are not a significant proportion of their livelihoods. Apart from minor disturbances to the environment during construction there are unlikely to be any adverse environmental or socio-economic impacts on the nearby households and they will benefit from the land payments made for the purchase of clan land. The Certificate of Alienability No. XXXXX was issued by the Secretary of the Department of Provincial and Local Government Affairs on XXXXX. The value of the land provided for the Community Health Post was assessed by the Valuer-General to be K39,500.00 and payment was made to the authorised agents by the West New Britain Provincial Administration on behalf of the State in Vatukele Village on 15th December, 2016. The Deed of Release and the Sale and Transfer documents were signed by the Agents in the presence of Village residents and a Customary Lands Officer of DL & PP. A Due Diligence Review confirms that the site at Vatukele eets the Pojets eligiility iteia fo development of a Community Health Post in that: The land is in Talasea District of the Province Landowners of the area have been consulted extensively about their healthcare needs and voluntarily offered land for the project in order to secure a Community Health Post within their village. The Poies “tategi Health “eie Deelopet Pla, - eoeds construction of a Level 2 Community Health Post in the area to serve the health needs of the 3221 persons living in the immediate area. That Plan has been endorsed by the Provincial Health Authority. The Chief Executive Officer of the Provincial Health Authority Province has endorsed the concept plan, the site plan and the final design of the Community Health Post after consulting with the local communities that it will serve. The Provincial Health Authority has entered a Memorandum of Agreement with the Secretary 4 for Health confirming the availability of recurrent budget for operation of the facility The Chief Executive Officer of the Provincial Health Authority has nominated the three staff members to be assigned to the facility and those staff have undergone extensive upskilling in maternal and child health service provision. The nominated Officer in Charge has completed the Rural Health Facility Management Course delivered by Divine Word University. The Community Health Post design has been certified by the Manager, Health Facilities Branch as consistent with the National Health Service Standards, 2011 The Environmental Management Plan for the construction site was endorsed by the relevant officers of the Asian Development Bank on 22nd June, 2016.