Involuntary Resettlement Assessment and Measures Resettlement Plan for Harkapur-Okhaldhunga Road Document Stage: Final Project Number: 44143 August 2010 NEP: Subregional Transport Enhancement Project Prepared by Department of Roads, Ministry of Physical Planning and Works. The resettlement plan 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. ii Resettlement Plan HARKAPUR- OKHALDHUNGA TABLE OF CONTENTS Contents Page List of Abbreviations iv Definition v Executive Summary vii 1.0 PROJECT DESCRIPTION 1.1 Project description 1 1.2 Measures to avoid or minimise resettlement 2 1.3 Land acquisition and resettlement 3 1.4 Objectives of the resettlement plan 3 1.5 Methods of study 3 1.5.1 Research Methods 3 2.0 SCOPE OF LAND ACQUISITION AND RESETTLEMENT 4 2.1 Scope of land acquisition 4 2.2 Project benefits and impacts 4 2.2.1 Project displaced households 4 2.2.2 Impacts on socially vulnerable groups 8 2.3 Indigenous people 9 2.4 Mitigation measures 9 3.0 SOCIOECONOMIC INFORMATION AND PROFILE 11 3.1 Socioeconomic profile of the project area 11 3.1.1 Social profile 11 3.1.2 Economic profile 11 3.2 Poverty incidence 12 3.3 Socioeconomic profile of the households 12 3.3.1 Social profile 12 3.3.2 Economic profile 15 3.3.3 Poverty status 16 3.3.4 Main income earners 17 3.4 Gender impacts of the subproject 17 3.4.1 Gender status 17 3.4.2 Education status of women 18 3.4.3 Ownership of property 18 3.4.4 Women’s work participation 18 3.4.5 Mobility pattern 18 3.4.6 Decision making status 19 3.4.7 Subproject impacts on women 19 4.0 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 20 4.1 Introduction 20 4.2 Methods of public consultation 20 4.3 Consultation-scope and issues 21 4.3.1 Scope of consultation 21 4.3.2 Feedback from the consultations 21 4.4 Disclosure of RP 26 4.5 Plans for future consultation and participation 26 iii 5.0 GRIEVANCE REDRESS MECHANISMS 27 5.1 Government policy for grievance redress 27 5.2 Proposed grievance redress mechanism 27 5.2.1 Grievance redress 27 5.2.2 Grievance redress procedure 27 6.0 LEGAL FRAMEWORK 30 6.1 Legislation 30 6.2 The Constitution of Nepal 30 6.3 Land Acquisition Act 2034 (1977) 30 6.4 ADB resettlement policy 30 6.5 Nepal and ADB Resettlement policy differences 31 6.6 Bridging difference between the government and ADB policy 32 7.0 ENTITLEMENTS, ASSISTANCE AND BENEFITS 34 7.1 Entitlement Policy 34 7.2 Entitlement matrix 34 7.2.1 Loss of land 34 7.2.2 Loss of residential/commercial establishment 35 7.2.3 Assistance to tenants 35 7.2.4 Income restoration assistance 35 7.2.5 Reconstruction of cultural/community structures 35 7.2.6 Unanticipated adverse impact 35 8.0 RESETTLEMENT BUDGET AND FINANCING PLAN 41 8.1 Direct cost 41 8.1.1 Land cost 41 8.1.2 Cost for structures 41 8.2 Indirect cost 41 8.2.1 Assistance to DPs 42 8.2.2 Assistance to vulnerable groups 42 8.3 RP implementation 42 8.4 External monitor 42 8.5 Contingencies 42 8.6 Total cost estimate 43 8.7 Financing plan 43 9.0 INSTITUTIONAL ARRANGEMENTS 44 9.1 Institutional set up 44 9.2 Compensation determination committee 44 9.2.1 Roles & responsibility 44 9.3 Grievance redress committee 45 9.4 Supervision consultant 45 9.5 Staff training at PIU 45 10.0 IMPLEMENTATION SCHEDULE 4 7 11.0 MONITORING AND REPORTING 48 11.1 Internal monitoring 48 11.2 External monitoring 48 11.3 Reporting 48 REFERENCES 49 iv LIST OF TABLES Table 1-1: Project Impacts on the Households for Land Acquisition 2 Table 1-2: Types of project impacts 3 Table 2.1: Type of Loss by Locations 5 Table 2-2: Number of Affected People 5 Table 2-3: Extent of Loss of Agricultural Land 5 Table 2-4: Types of assets by loss and structure type 6 Table 2-5: Types of Affected Residential Structures 6 Table 2-6: Extent of Loss of Residential Structures 6 Table 2-7: Ownership Status of the Affected Residential Structures 7 Table 2-8: Construction Type of Affected Commercial Structures 7 Table 2-9: Extent of Loss of Affected Commercial Structures 8 Table 2-10: Ownership Status of Affected Residential cum Business Structures 8 Table 2-11: Vulnerability Status of the DPs of Displaced households 9 Table 3-1: Population Distribution of Affected District and VDCs 12 Table 3-2: Development Indicators of the Subproject Area Districts 13 Table 3-3: Poverty Incidence in Subproject VDCs 13 Table 3-4: Age-wise Distribution of Household Members 13 Table 3-5: Displaced households by Ethnicity 14 Table 3-6: Educational Status of the Respondents of Displaced households 14 Table 3-7: Literacy Status of the Family Members of the Households 15 Table 3-8: Main Sources of Income of Interviewed Households 15 Table 3-9: Breakdown of Economically Active Population by Sex 16 Table 3-10: Average Annual Income of the Displaced households 16 Table 3-11: Poverty Status by Ethnic/Indigenous & Other Caste Groups 17 Table 3-12: Main Earners in the Subproject Area 17 Table 3-13: Gender Development Index (GDI) in Subproject Districts 18 Table 3-14: Illiteracy Rate in the Subproject Districts by Sex 18 Table 4-1: Methods Employed During the Course of Consultations 20 Table 4-2: Consultation Matrix (May-June 2008) 22 Table 4-3: Public Consultation held in different location of Harkapur-Okhaldhunga 25 Table 6-1: Comparison of Differences and Gaps between GON & ADB, SPS 32 Table 7-1: Entitlement Matrix 36 Table 8-1: Total area affected and cost estimate by VDCs 41 Table 8-2: Summary of compensation costs 43 Table 10-1 Implementation Schedule of the Resettlement Plan Implementation 47 LIST OF ANNEX Annex 1-1: Checklist for Public Consultation/ Focus Group Discussion 50 Annex 1-2: Attendance Sheets of the Participants 52 Annex1-3: Photographs 57 Annex 2-1: List of Land Parcel and Name of the DPs by VDC wise in Harkapur-Okhaldhunga 58 Annex 9-1: TOR of the Social Safeguard Consultant 63 LIST OF FIGURES Fig. 1-1: Harkapur- Okhaldunga Road Alignment 11 Fig. 5-1: Grievance Resolution Procedure 29 Fig. 9-1 Organizational Framework for Resettlement Activities 46 v LIST OF ABBREVIATIONS ADB Asian Development Bank CBO Community Based Organization CBS Central Bureau of Statistics CDC Compensation Determination Committee CDO Chief District Officer COI corridor of impact DAO District Administration Office DDC District Development Council DLSO District Land Survey Office DLRO District Land Revenue Office DOR Department of Roads DP displaced person DSC Design and Supervising Consultant EA Executing Agency FY Fiscal Year FGD focus group discussion GDI Gender Development Index GEU Geo Environment Unit GRC Grievance Redress Committee GON Government of Nepal HDI Human Development Index HPI Human Poverty Index HHs households IA Implementing Agency INGO International Nongovernment Organization LARDP Land Acquisition and Resettlement Action Plan MOF Ministry of Finance MPPW Ministry of Physical Planning and Works NA not available/not answered NGO Nongovernment Organization PDP(s) Project Affected Family (Families) PD Project Director, PID PIU Project Implementation Unit PPTA project preparatory technical assistance ROW Right of Way RP resettlement plan R&R resettlement and rehabilitation RS Resettlement Specialist SC Supervision Consultant SPAF severely project affected family SPS Safeguard Policy Statement (ADB 2009) STEP Subregional Transport Enhancement Project VDC Village Development Council ZOI zone of influence vi DEFINITION Compensation: The payment in cash or kind for private property acquired by the government for the project, based on replacement value. Entitled Pe rson (EP): Any person physically or economically displaced as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Corridor of Impact (COI): Minimum width of land required for the construction of roads and provision of shoulder, width plus safety zone on either side of the road. COI is generally within the RoW, except where construction requirements and topography necessitate the acquisition of wider area. Cut-off Dat e: The date of census survey to count the DPs and their affected business and assets. Local Consultative Groups (LCG ): Municipalities/village level committees established to assist the affected population, legally constituted committees for land acquisition and project authorities, monitoring of implementation issues and community reactions and grievance resolution. Poverty Lin e Income (PLI): The cost of maintaining basic minimum needs. PLIs have been defined by different organizations and the government departments, using factors such as per cDPita calorie requirements and expenditures on housing and other non- food items. Displaced Person (DP ): Any person including Vulnerable encroachers/squatters, households, business affected by the project through the acquisition of land or other assets or disruption in business irrespective of legal or ownership title. This includes any person whose rights, standard of living, subsistence and income-generating capacity are adversely affected because of the disruption in the acquisition of assets or business, whether full/partial, or permanent/temporary. Rehabilitation: The measures taken to mitigate social impacts, including compensation, resettlement and rehabilitation allowances where required. Replacement Cost: The open/fair market value of a project affected property. For agriculture land, this includes reference to land of equal size, type and productive potential in the vicinity of the affected land and land preparation costs where required.