Public Disclosure Authorized PAKISTAN HIGHWAY REHABILITATION PROJECT Resettlement Plan-N-5 (Phase 11) Document Stage: Final Project Number: 3 846 PAK Public Disclosure Authorized November 2007 Public Disclosure Authorized Public Disclosure Authorized Prepared by National Highway Authority, Islamic Republic of Pakistan for the World Bank. The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of the Bank's Board of Directors, Management, or staff, and may be preliminary in nature. Executive Summary Executive Summary A. THE HIGHWAY REHABILITATION PROJECT The 8,500-km-long national highway system managed by the National Highway Authority (NHA) carries 75-80% of Pakistan's total commercial traffic. Figure 10-1 depicts the existing national highway system in Pakistan. The major traffic movements are concentrated along the 1,760-km National Highway N5 that stretches south to north across the Karachi-Lahore-Rawalpindi-Peshawar- Torkham corridor. Parts of this highway date back 500 years. It is the main corridlor connecting the provinces of the NWFP, the Punjab, and Sindh, and serves more than half of Pakistan's inter-city traffic. It connects the northern parts of the country with international markets through the port of Karachi, which accounts for 96% of Pakistan's trade. About half the national highway network is in poor condition due to ever increasing traffic volumes, very high axle loads and inadequate maintenance. On the basis of past trends of increasing dependence of national economic growth on road infrastructure, it is estimated that traffic volume will increase by about 180% by 2024 over the base year 2001. Unless this situation is immediately addressed, the network will deteriorate rapidly over the next six years, causing a 32% increase in road user costs. The Government of Pakistan (GoP), therefore, is implementing the National Highways Improvement Program (NHIP) to address the degradation of the national highway system, through the phased improvement of approximately 2,700 km of roads. The program will result in a gradual reduction in average network roughness, leading to a 5% decrease in road user cos1;s- a saving of Rs 189 billion (USD 3.26 million) over a six-year period. The highway sections that fall under the NHIP have been divided into three groups prioritized according to need and source of -funding. The N5 currently carries the bulk of the country's commercial and passenger traffic, and this is a priority for improvement. For the implementation of the NHIP, the World Bank has extended financial assistance for selected sections of N5. The development objective of the World Bank-assisted Pakistan Highway Rehabilitation Project (PHRP) is the sustainable delivery of a productive and efficient national highway system contributing to lower transportation costs. The USD 282 million-project supports the borrower's program by financing a distinct se-gnent of NHIP works, sustaining essential reforms in the sector, as well as strengthening the capacity of the NHA. Under the HRP, 856 km of road along the N5 highway will be upgraded in two phases spread over five years. Of this total length, 550 km of the N5 will be upgraded under rehabilitation and maintenance projects (RMP), and 306 km of the N5 under resurfacing and strengthening projects (RSP). Rehabilitation and maintenance projects involve those sections of the project corridor that need major reconstruction work. All of the Phase I1 works are on N5. 5065019 - Contract Administration and Construction Supervision for Highway Rehabilitation Project - Pakistan N5(Phase II) Resettlement Action Plan, November 2007 Page ii '"$g@a'$&% +4FdSh%EC Executive Summary Figure 10-1 Pakistan National Highway System 5065019 - Contract Administration and Construction Supervision for Highway Rehabilitation Project -Pakistan N5(Phase II) Resettlement Action Plan, November 2007 Page iii Executive Summary The following is a list of the six Phase I1 project links. This Phase includes ihe rehabilitation and maintenance of 375.2 km along the N5, i.e. Contract 3 Moro - Ranipur, Contract 5 Ubauro - Shaikh Wahan, Contract 7 Mian Channu - Sahiwal, Contract 1 1A Mian Channu - Sahiwal Bypasses Contract 8 Lahore - Gujranwala and Contract 9 Turn01 - Chablat Contract 9 section was transferred from Phase I to Phase I1 due to the late introduction of changes in its development strategy. Table 1-1 also lists the sections se1ecte:d in Phase I1 for resurfacing and strengthening (RSP). These total 132 km spread over two road sections. Contract 11B Mian Channu - Sahiwal - Okara Contract 13 Kharian - Rawalpindi C. PROJECT IMPACTS The project is anticipated to produce favourable impacts over the long-term fhat will promote economic development and an improvement in living standards in the project areas. However, the project may also lead to some negative impacts, particularly during the construction period. Socio-economic surveys of projects and informed by Feasibility Studies indicate that 458 people will be adversely affected through project implementations. Extensive project-related documentation - including an Environmental Assessment (EA), Environmental Management Plan (EMP), Social Assessment (SA), - has bee:n prepared to set out measures to mitigate negative socio-environmental impacts that potentially would result from HRP works. D. SCOPE OF THE RESETTLEMENT ACTION PLAN (RAP) A RAP is a development plan in favour of people adversely impacted by HRP implementation. It is in keeping with the project policy framework reflecting both existing Pakistani laws and Work Bank policy, particularly the Operational Policy (OP) No. 4.12. In none of these projects will there be need for either land acquisition or demolition of structures. Adverse impacts include the need to relocate squatters' temporary commercial structures; encroacher's temporary commerciial structures and squatter-owned utilities. There will similarly be need to relocate public utilities. Reflecting Bank resettlement policy, a Social Assessment (SA) and Environmental Impact Assessment (EIA) must be undertaken. Analysis of survey results identifies categories of Project Affected People (PAPs). An Entitlement Matrix is then constructed, listing all categories of PAPs identified in these surveys along with respective mitigation measures (their entitlements). This Ehtitlement Matrix provides the basis around which the Resettlement Acton Plan (RAP) is composed. Excluding categories of PAP from the Entitlement Matrix renders the RAP non-compliant with Bank policy. The Entitlement Matrix is prepared at the initial stage of RAP preparation. An attempt to prepare a matrix prior to having to hand field survey results would almost certainly lead to Bank non-compliance. 5065019 - Contract Administration and Construction Supervision for Highway Rehisbilitation Project - Pakistan N5(Phase II) Resettlement Action Plan, November 2007 Page iv Executive Summary The following provides some clarification on the concepts of Eligibility, Legal Frameworl<, and Compensation and Entitlement Policy, central to resettlement policy. E. ELIGIBILITY Eligibility for PAP entitlements is prescribed in an Entitlement Matrix. This Matrix is to reflect Bank Resettlement Policy and to identify all categories of adversely impacted people triggered by that policy. A matrix commonly takes into account loss of agriciultural land; loss of residential, commercial or institutional land; loss of residential, cornmercial and/or institutional structures; loss of standing crops or trees and loss of public infrastructure. In addition, PAPs may be eligible for cash payments in lieu of lost income or for re-training and credit for business development. For legal title holders, customary or usufruct rights holders, cash compensation of affected land would be paid on the basis of replacement cost of the acquired land, in accordance with Bank Operational Policy 4.12. The tenants and sharecroppers will be compensated for the un- expired duration of the lease. The vulnerable encroachers or squatters will be compensated for affected structure at the replacement cost. The owners of the affected structure, with or without legal title, will be entitled to cash compensation at the replacement value (salvage value of the structure will not be deducted). The affected cultivators will be entitled to cash compensation for the damaged crops calculated on the basis of market prices. The owners of the affected trees, with or without land title, will be paid cash compensation, on the basis of market value of the trees according to the type, age, size and productivity of trees In case of the loss of any common resources or facilities, the project will replace or restore the affected facility or resource, in consultation with the affected community. The project will pay cash compensation to the relevant agency based upon the replacement value of the affected infrastructure. Alternatively, the project will replace or restore the damaged infrastructure in the pre-project condition or better, in consultation with the concerned agency. The project will pay cash compensation, at replacement cost, for damage to,, or relocation of public utilities. Similarly, the project will pay for the repair, relocation or reconstruct of religious site, in consultation with affected community. Project will al,so assist in the relocation of graves. The cut off date for eligibility is the last day of the Social Survey for the project. F. LEGAL FRAMEWORK The Pakistan Highway