Resettlement Plan (Draft) July 2013 BAN: Power System Expansion and Efficiency Improvement Program – Tranche 2 Prepared by Power Grid Company of Bangladesh (PGCB) for the Asian Development Bank This 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. In preparing any country programme 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 judgments as to the legal or other status of any territory or area. ABBREVIATIONS ADB Asian Development Bank ARIPO Acquisition and Requisition of Immovable Property Ordinance BPDB Bangladesh Power Development Board CHT Chittagong Hill Tracts CSR Corporate Social Responsibility DC Deputy Commissioner DESCO Dhaka Electricity Supply Company Ltd DMS Detailed Measurement Survey DP Displaced Person DPDC Dhaka Power Distribution Company EA Executing Agency GAP Gender Action Plan GRC Grievance Redress Committee GRM Grievance Redress Mechanism HIES Household Income and Expenditure Survey IDB Islamic Development Bank IOL Inventory of Losses IP Indigenous People JVT Joint Valuation Team LILO Line In Line Out MOPEMR Ministry of Power Energy and Mineral Resources PGCB Power Grid Company of Bangladesh PMU Project Management Unit PVAT Property Valuation Advisory Team ROW Right of way RP Resettlement Plan RU Resettlement Unit T/L Transmission Line CONTENTS ABBREVIATIONS EXECUTIVE SUMMARY i 1. INTRODUCTION 1 2. PROJECT DESCRIPTION 3 3. SCOPE OF LAND ACQUISITION AND INVOLUNTARY 5 RESETTLEMENT IMPACT 3.1 Subprojects that do not cause displacement or involuntary 6 resettlement impact 3.2 Subprojects that cause permanent economic displacement 8 3.3 Subprojects that cause temporary economic displacement 10 4. SOCIO-ECONOMIC PROFILE 14 4.1 Introduction 14 4.2 Methodology of the social analysis 14 4.3 Socio-economic profile of displaced persons 14 4.4 Socio-economic context of the subprojects’ impact area 15 4.5 Socio-economic profile of the communities in the subprojects’ 15 impact area 4,6 Impact on Indigenous Populations 22 4.7 Socio-economic impact of the subprojects 24 5. INFORMATION DISCLOSURE, CONSULTATIONS AND 26 PARTICIPATION 5.1 Consultation 26 5.2 Information disclosure 28 5.3 Continued consultation and participation 28 6. GRIEVANCE REDRESS MECHANISM 29 6.1 Statutory mechanisms 29 6.2 Grievance Redress Committee 30 7 LEGAL FRAMEWORK 31 7.1 Laws of Bangladesh 31 7.2 ADB Safeguard Policies 2009 – Involuntary Resettlement 35 Safeguards 7.3 Gaps between laws of Bangladesh and ADB Involuntary 37 Resettlement Policy 8. ENTITLEMENTS, ASSISTANCE AND BENEFITS 43 8.1 Eligibility 43 8.2 Entitlements 43 9. RELOCATION AND INCOME RESTORATION 45 10. RESETTLEMENT BUDGET AND FINANCING PLAN 46 10.1 Resettlement budget 46 10.2 Financing Plan 49 11. INSTITUTIONAL ARRANGEMENTS 49 12. IMPLEMENTATION SCHEDULE 51 13. MONITORING AND REPORTING 52 ANNEXURES ANNEX 1 Social Analysis 55 ANNEX 2 Gender Analysis 76 ANNEX 3 Gender Consultations – Summary Of Discussions 85 ANNEX 4 Public Consultations- Summary Of Discussions 105 EXECUTIVE SUMMARY 1. Project description:The preparatory phase for the BAN: Power System Enhancement and Efficiency Improvement Program- Tranche 2 received ninety-three subprojects altogether that have been proposed by three power transmission and distribution companies in Bangladesh. The three agencies are Power Grid Company of Bangladesh (PGCB), Dhaka Power Distribution Company (DPDC) and Dhaka Electricity Supply Company Ltd (DESCO). All the subprojects have aimed to strengthen the power supply stability, reliability and transmission and distribution network capacity in Bangladesh. 2. The Power Grid Company of Bangladesh (PGCB) proposed thirty-seven subprojects for Tranche 2 which included components to evacuate power that would be generated by the upcoming power plants at Ghorasal. In addition, the improvement in power transmission facility will strengthen the power supply stability, reliability and transmission capacity in the eastern side of Dhaka city, to the north-east of Dhaka (Gazipur and Naryanganj), and the core areas of Chittagong and Sylhet. These subprojects will be funded by the Islamic Development Bank (IDB), the Asian Development Bank (ADB) and kfW under four different components. The Executing Agency (EA) will be the PGCB hereinafter referred to as EA. 3. Scope of land acquisition and involuntary resettlement impact: Of the thirty-seven subprojects, eighteen subprojects will not lead to any temporary or permanent physical or economic displacement and involuntary resettlement of either the title or the non-title-holders. None of the subprojects required any land acquisition and the substations would be constructed within the existing substation premises or on vacant land that remains in the possession of the EA. The Transmission Line (T/L) subprojects that fall under these twelve subprojects would traverse along road easements, state land or low lying areas to avoid or minimize any adverse impacts on people’s private properties and livelihoods. Three other subprojects require acquisition of 22.0 acres of private land leading to permanent economic displacement of about 59 persons.Construction of twelve other transmission line (T/L) subprojects will affect the standing crops spread over an area of about 28.9 acres due to installation of towers required for transmission lines.Paddy cultivations of about188 persons will be temporarily affected during the project construction period.The EA has not identified the required land for three of its proposed subprojects at the time of conducting the due diligence (June-July 2013) and therefore a status review could not be conducted. However, if any land is acquired in anticipation of financing from ADB, the process of acquisition, payment of compensation and resettlement will be guided by the Resettlement Framework ofBAN: Power System Enhancement and Efficiency Improvement Program- Tranche 1 (September 2012) and the Safeguard Policy Statement of the ADB. The EA will upgrade the RP and submit to ADB for its approval and disclosure prior to the commencement of any construction work by the contractors. 4. Socio-economic profile of displaced persons (DPs): The construction of the 230/132/33 kV AIS substation at Sripur will result in permanent economic displacement of 28 marginal farmers of lower middle and poor socio-economic status. The construction of the i 132kV/33kV GIS substation at Sylhet will cause economic displacement to six poor households partly dependent on cultivations and partly on small trading. The estimated number of persons to be economically displaced by the construction of the 230kV/132kV GIS substation at Shyampur is approximately 25 middle income farmers, the majority of whom is also dependent on supplementary sources of income. Twelve transmission line subprojects will lead to temporary economic displacement of an estimated 188 farmers. 5. Socio-economic profile of the project impact area: A baseline survey conducted with 110 households living along five T/L subprojects included 64.5 percent living in semi-urban areas; another 16.3 percent in urban areas; and 19 percent in rural areas. The total population of the 110 households was 539 with an average household size of 4.9. Of this population, 31.4 percent were dependents below the age of 18 years. The male and female population was 57.1 percent and 42.8 percent respectively. The married population was 65.6 percent whereas the rest 34.4 were unmarried. All the 110 households were Bangali nationals. By religion, 95 percent were Muslims and the rest 5 percent were Hindus. 84.5 percent of the households were living in nuclear families while the rest 15 percent in extended families. All the households were male headed. The educational achievement of 77 percent of the population was below the junior school certificate. Poverty has been the major underlying factor that deprived a large number of children pursuing higher education. The educational standards among women are low compared to men. Opportunities for pursuing vocational and technical education are limited and access to available resources is curtailed by household poverty. Only 11 percent owned land and 80.9 percent lived in rented out houses. Households in project sites drew incomes from multiple sources. The males constituted 74.3 percent of the family income earners. 96.5 percent of the small businesses were run by men. In contrary, women constituted the majority (89.6 percent) in running poultry farms, fishnet making, tutoring and tailoring. Men dominated the government sector jobs having a share of 90.9 percent of the government employment. Migrants for foreign employment were 2.8 percent. The foreign remittance that households received ranged from Tk10,000 to Tk50,000 a month (US $125-625). The average monthly income of the households was Tk20,762.05 whereas their monthly per capita income stood at Tk4,237.15. The monthly average household expenditure was at Tk19,543.84 with a monthly per capita expenditure of Tk3,988.53. Of the monthly expenditures, 98.4 percent was spent on consumables and 1.6 percent on non-consumable investments such as agricultural activities. The households spent 47.3 percent of the monthly incomes on food, 5.5 percent on electricity and another 4.4 percent for purchasing fuel wood. Regular prevalence of fever, jaundice,