RESETTLEMENT FRAMEWORK. Supplementary Appendix to the Report and Recommendation of the President to the Board of Directors. on the
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1 RESETTLEMENT FRAMEWORK Supplementary Appendix to the Report and Recommendation of the President to the Board of Directors on the Secondary Education Modernization Project II in Sri Lanka Ministry of Education This report was prepared by the Borrower and is not an ADB document. The report is available on request. 25 October 2004
2 A. Project Background 1. The Secondary Education Modernization Project II has two objectives: to support the government s strategy to improve the quality, equity and management efficiency of secondary education and make it more responsive to labor market requirements and; to contribute to the government s long term policy on peace building by increasing equity of access to quality education and promoting education for social cohesion. The project will target approximately AB and IC schools. It is proposed that physical infrastructure and facilities of 1AB and 1C schools that are considered to be below accepted standards need to be developed and therefore, minor civil works will be undertaken in selected schools. Civil works include construction of computer learning rooms, libraries, activity rooms, science Laboratories and toilets, partitioning classrooms, conversion of existing rooms to libraries and science laboratories and computer learning centers by extensions to the existing buildings. The types of civil works envisaged are similar to civil works carried out under the Secondary Education Modernization Project (TA 1756). 2. The proposed civil works do not envisage any involuntary resettlement work and land acquisition. The potential number of households that may be affected is in any event small and would fall under the category of insignificant resettlement under the Asian Development Bank s (ADB) Policy on Involuntary Resettlement. However, Resettlement Plans (RPs) will be prepared accordingly whenever the need for resettlement is identified. A Resettlement Framework (RF) has been prepared to ensure that if resettlement needs are identified the project implementing agency follows the procedures for involuntary resetllement in compliance with both ADB s Policy on Involuntary Resettlement and National Involuntary Resetllement Policy of the Government of Sri Lanka. 3. The extent of civil works at each school will be minor construction works and improvements to the existing buildings and extensions. Therefore, the following Resettlement Framework for rehabilitation works was agreed upon between the Government and ADB to guide the Government in preparing a Resettlement Plan (RP) should this be found to be necessary during implementation. B. Policy Framework and Entitlements 4. Sri Lanka adopted a National Involuntary Resettlement Policy (NIRP) in May Amendments to the Land Acquisition Act have been drafted. The Land Acquisition Act No. 8 of 1979 would provide the legal basis for the NIRP. Land and asset acquisition will be undertaken within the framework of the Land acquisition Act and it provides various steps to be involved in land acquisition and compensation. Since there are inadequacies of the payment of compensation under the act compensation for lands, structures and other assets will be calculated and paid at full replacement cost. The Ministry of Lands (MOL) has the overall responsibility for implementing the national policy. The current Land Acquisition and Resettlement Unit under NIRP will continue land acquisition and resettlement for the construction and rehabilitation works. The Executing Agency, Ministry of Education will be instructed by the Resettlement Division of the Ministry of Lands on how to prepare and implement resettlement plans including adequate compensation package, resettlement of affected people in consultation with their needs and income restoration programs. For this purpose Land Acquisition and Resettlement Committees (LARC) will be established to pay adequate compensation. The principal aim of the RP is to address social impacts and ensure the restoration and improvements of living standards of affected households. The Entitlement
3 Matrix section 5 provides various compensation and entitlement policies that will be applied to broad categories of affected people. This matrix will be revised at the implementation of the RP with the identification of different categories of affected people. The principles, objectives and scope of the NIRP are very similar to those of the ADB. The Resettlement Framework aims to ensure that screening, planning and management procedures for involuntary resettlement on all civil works will be in compliance with ADB s Policy on Involuntary Resettlement and other ADB social safeguard policies. 5. This policy framework has been built upon the NIRP (2001) 1, and ADB s resettlement policy. The following major policy principles and objectives are reproduced below: (viii) (ix) (x) (xi) (xii) Avoid, minimize and mitigate negative land acquisition and resettlement impacts by reviewing alternatives to the project; If involuntary resettlement is unavoidable, the displaced persons should be assisted to re-establish themselves and improve their quality of life; Gender quality and equity should be ensured and adhered to throughout the policy; Affected persons (APs) should be fully involved in the selection of relocation sites, livelihood compensation and development options at the earliest opportunity; cash compensation will be used since the project will only require small amount of land; Compensation for loss of land, structures and assets should be based on full replacement cost 2 (including transaction costs) and should be paid promptly; Resettlement should be planned and implemented with full participation of the provincial and local authorities; Assist those affected to be economically and socially integrated into the host communities, participatory measures should be designed and implemented; Common property resources and community and public services should be provided; Resettlement should be planned as a development activity; APs who do not have documented title to land should receive fair and just treatment; Vulnerable groups should be identified and given appropriate assistance to substantially improve their living standards; and The Government should bear full costs of compensation and resettlement. 6. Persons affected by the rehabilitation works will be entitled to various types of compensation and resettlement assistance that will help in the restoration of their livelihoods, at least, to the pre-project standards as shown in the following matrix. 1 To assist the relevant agencies in planning, implementing, monitoring and evaluating all involuntary resettlement impacts, the following guidelines are provided: i) General Guidelines on Planning and Implementation of Involuntary Resettlement; Guidelines for the Preparation of a Resettlement Action Plan; iii) Process Manual for the Implementation of the NIRP- Ministry of Land; and iv) Guidelines for a Participatory Resettlement Process. 2 Replacement cost means the cost of replacement of lost assets and income. If land, it means the cost of buying a replacement land near the lost land with equal productive potential plus the cost of preparing the land to levels similar to those of the affected land and cost of any registration and transfer taxes. If structures, it means current market value of building materials, required labor without deduction for depreciation and/or salvageable materials. For crops and trees, it will be based on economic production, age and type.
4 I. ENTITLEMENT MATRIX Type of Losses Entitlement Implementation Issues Temporarily affected land (during construction) Permanent Loss of land (with land title/ownership records) Loss of crops and trees by cultivators regardless of the land ownership Loss of structures and immovable assets by owners (regardless of the land title) Restoration of cultural/community structures Rental payment during the temporary use of AP s land. Cash compensation will be used since the project will only require small amount of land. Cash compensation for loss of crops at replacement cost. If sown or standing crops are damaged or uprooted, the owner of the affected crops will be compensated in cash for the loss of un-harvested crops, at the mature crop value to be assessed on the basis of current market rates. Compensation for loss of fruit trees at replacement cost which is based on the present income and crop bearing capacity. Compensation for structures/assets at full replacement costs without deduction for depreciation/ salvageable materials. The cost will include transportation and labor costs. Complete restoration work or cash compensation for rehabilitation/rebuilding of affected common property resources and cultural/structures/ installations. The land will be restored to its previous or better quality. Payment of land will be made available to the divisional secretaries as soon as the Ministry of Finance approves the proposal for payment of compensation. The trees/crops are identified and listed by the Grama Nilandaris. The trees are valued by specialized agencies such as the Coconut Development Board, Rubber Research Institute and Divisional Secretaries. Owners of affected structures will be allowed to take/reuse all the salvageable materials for rebuilding/rehabilitation of the structure. To be paid to the formal or locally recognized patrons/users' group leaders. The main categories of impacts included are loss of lands, houses and other structures, crops and trees, employment and community facilities. Some entitlements will be based on consultations with the affected persons in specific areas. Eligibility for entitlements will be based on an inventory of assets to be acquired. C. Procedures 7. For civil works included under the proposed project, the following checklist needs to be answered and resettlement needs are identified: (viii) (ix) (x) Will the subproject require land? What is the quantity of land required? Will the impact be permanent or temporary (during construction)? Who owns the land? How is land currently used? If private land, how many landowners/tenants/sharecroppers will be affected? If state land, is it subject to customary claim? If state land, are there any squatters or encroachers? Are there any houses, structures, trees and crops that will be affected? How many households will be physically displaced? Can they move back to the residual land? Are there any public or community infrastructures? Will indigenous peoples be adversely affected?
5 8. In preparing the SRP, the following procedures must be followed: Consultations with various stakeholders to obtain inputs in avoiding/ minimizing the impacts, RP planning, identify needs and preferences of APs. Undertake census (100% coverage), asset inventory and detailed measurement surveys. A socio-economic survey of sample population will also be undertaken. Analyze data to identify different categories of APs based on the degree and scale of impacts of the subproject. Formulate time bound schedule for RP implementation, procedures for grievance redress, monitoring and evaluation procedures and budget. Prepare a draft RP following the entitlements matrix (para. 5). If there are new categories of APs and types of losses are identified, the entitlements will be included in accordance with ADB s policy on involuntary resettlement. Translate into local languages and present the draft subproject RP during consultation and public meetings for comments. The final RP will incorporate the comments and suggestions of the affected communities. Submit the RP to ADB for review and concurrence. The approved subproject RP will be implemented before the award of construction contracts. D. Implementation Arrangements, Consultation and Grievance Mechanisms 9. The executing agency (EA) of Ministry of Education will have overall responsibility for project coordination and implementation. A National Project Management Office (PMO) will have overall responsibility for implementation of civil works. However, the Project Management Office at in each Province will ensure that civil works are carried out according to school development plan approved by the Zonal Education Office, Provincial Director of Education and the PMO at national level. 10. Grievances will be handled by the PMO at national level with the assistance of the Provincial PMO. RPs will be disclosed through the PMO offices. The external monitoring agency appointed will carry out its own monitoring activities and will submit quarterly reports to the PMO and to ADB; these will include progress on planning and implementation of RPs. E. Cost Estimates and Financing 11. The associated costs of land acquisition and resettlement, if any, will be included in the overall Project costs. The estimate will include measures for planning and budgeting for land acquisition and resettlement costs, annual budget, and sources of funding; arrangements for approval of RP cost estimates; and the flow of funds to reach people affected.
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