FINAL FULL RESETTLEMENT PLAN (LAND ACQUISITION AND RESETTLEMENT ACTION PLAN - LARAP)

Transcription

1 FINAL FULL RESETTLEMENT PLAN (LAND ACQUISITION AND RESETTLEMENT ACTION PLAN - LARAP) For the Roads and Bridges Sector: Ulee Lheue Road Subproject (SP4) Earthquake and Tsunami Emergency Support Project (ETESP INO 002) in INDONESIA Badan Rehabilitasi dan Rekonstruksi (BRR) NAD-Nias This report was prepared by the Recipient and is not an ADB document. 16 April 2007

2 TA No 2-INO Earthquake and Tsunami Emergency Support Project (Component 12: Roads and Bridges Component) Subproject No. 4: Ulee Lheue Road Land Acquisition and Resettlement Action Plan (Final) 16 April 2007 BRR NAD-Nias Infrastructure Development Division Government of Indonesia

3 EXECUTIVE SUMMARY This Land Acquisition and Resettlement Action Plan (LARAP) was prepared to address land acquisition and resettlement impacts associated with the proposed Ulee Lheue Road Subproject 4 under the Earthquake and Tsunami Emergency Support Project (ETESP). The subproject proposes to rebuild and widen sections of the 8.98 km Ulee Lheue Road from Banda Aceh to Simpang Rima. The widening of sections of the UL road is an essential part of the reconstruction process. In the event that another tsunami should occur, the ULR is the major escape arterial to higher ground for people living on the delta of Kota Banda Aceh and Peukan Bada. The widening of the road is also in line with the vision of making Ulee Lheue Island and its approaches a religious and historical tsunami memorial area, and better support the reconstruction of the Banda Aceh fishing industry and increased passenger service to Sabang. Impacts from the subproject include the: - acquisition of 5.07 ha of privately-owned land, 0.49 ha of village-owned land, and 0.15 ha of government-owned land, - loss or transfer of some structures (3 fences, 26 small shops, and 2 temporary housing structures) - livelihood losses of owners of 26 small shops - loss of 139 shade trees owned by the government Of the 524 privately-owned plots to be acquired, 513 have known claimants or heirs. Owners of 27 plots have yet to be identified. Claimants/heirs were identified based on the community mapping and adjudication processes under the Reconstruction of Aceh Land Administration System (RALAS) implemented by the Land Agency (BPN) and funded by the Multi Donor Trust Fund. Affected landowners will be compensated at replacement rates as determined by the Land Acquisition Committees formed for Banda Aceh and Aceh Besar, with support from village level committees and advice from an independent valuation team. Owners with affected structures will also be compensated and assisted. The Badan Rehabilitasi dan Rekonstruksi NAD Nias (BRR-Executing Agency for the ETESP Grant) and the Aceh Provincial Provincial Government are sharing the cost of land acquisition and resettlement. A total of Rp billion budget has been earmarked for the implementation of this LARAP. Coordination/networking shall be made to help link the APs with ongoing livelihood and micro-finance interventions in Aceh particularly with the ETESP-Livelihood and Microfinance Sector activities. Use of local labor for construction will be maximized, giving priority to APs family members. Identification of APs was done in September Consultations started in the same month. Socio economic surveys were done in November-December Land valuation and negotiations were completed in December In order not to lose the funds allocated for land acquisition during the budget year 2006, payment of compensation started for APs with complete documentation. Bulk of the LARAP implementation activities are expected to be completed by May ii

4 The ULR Project Implementation Consultants will handle the internal resettlement monitoring, while Syiah Kuala University (under the supervision of the BRR Supervisory Board) will be engaged to do external resettlement monitoring. iii

5 ABBREVIATIONS ADB Asian Development Bank AP affected person BAPPENAS National Planning Department BPN Baden Pertanahan Nationale (National Land Department) BPS National Statistics Department BRR Baden Rehabilitasi dan Rekonstruksi (BRR) or the Aceh-Nias Rehabilitation and Reconstruction Agency bupati district head camat sub-district head desa village (same as gampong) dusun compounds or neighbourhoods EA executing agency ETESP -- Earthquake and Tsunami Emergency Support Project GOI Government of Indonesia gampong village (same as desa) geucik village head HSE health, safety and environment IA implementation agency IDP internally displaced persons IDR Indonesian rupiah IEE initial environmental examination kabupaten District kecamatan sub-district LAC Land Acquisition Committee LARPFRG land acquisition and resettlement policy framework and procedural guidelines LAR land acquisition and resettlement LARAP land acquisition and resettlement action plan NAD Nanggroe Aceh Darussalam PIC project implementation consultant PMO project management office PMU project management unit R&B -- roads and bridges component RoW right-of-way RP resettlement plan SPEM -- Spatial Planning and Environment Management ULR -- Ulee Lheue Road WCR -- West Coast Road iv

6 v WEIGHTS AND MEASURES ha - hectare km - kilometer m - meter m² - square meter CURRENCY EQUIVALENTS (as of 19 February 2007) Currency Unit Indonesian Rupiah (Rp) 1 IDR = US$ US$1.00 = Rp9, (i) (ii) Notes In this report $ refers to US dollars The fiscal year (FY) ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends.

7 Affected person (AP) GLOSSARY Any person or persons, household, firm, private or public institution that on account of changes resulting from the project will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest, salt mining and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed restricted or otherwise adversely affected, in full or in part, permanently or temporarily, and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. In the case of a household, the term AP includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components. Compensation - payment in cash or in kind of the replacement cost of the acquired assets. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market rates, plus any transaction costs such as administrative charges, taxes, registration and titling costs. Cut-off Date the date prior to which the occupation or use of the project area makes residents/users eligible to be categorized as affected persons. The cutoff date coincides with the date of the census of affected persons within the project area boundaries. Persons not covered in the census, because they were not residing, having assets, or deriving an income from the project area, are not eligible for compensation and other entitlements. Affected people and local communities will be informed of the cut-off date of the project. Entitlement range of measures comprising compensation, income restoration, transfer assistance, income substitution and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base. Improvements structures constructed (dwelling unit, fence, waiting sheds, pig pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. Land Acquisition Population Record/Census - the process whereby an individual, household, firm or private institution is compelled by a government agency or private company to alienate all or part of the land it owns or possesses, to the ownership and possession of the government agency or private company, for public or corporate purpose in return for a compensation equivalent to the replacement costs of affected assets. - an enumeration of affected persons, listing them according to location to establish a list of legitimate beneficiaries before the project s onset to counter spurious claims from those moving into the project area solely in anticipation of benefits. Rehabilitation - means assistance provided to project affected persons due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. Relocation - the physical relocation of an AP from her/his pre-project place of residence. vi

8 vii Replacement Cost - the value determined to be fair compensation for land based on its productive potential, the replacement cost of houses and structures (current fair market price of building materials and labor without depreciation or deductions for salvaged building material), and the market value of residential land, crops, trees and other commodities. Resettlement - all measures taken to mitigate any and all adverse impact of the Project on AP property and/or livelihood, including compensation, relocation (where relevant) and rehabilitation as needed. Resettlement Plan Significant Resettlement Effects Vulnerable Groups a time-bound action plan with budget setting out compensation and resettlement strategies, objectives, entitlement, actions, responsibilities, monitoring and evaluation. when 200 or more people experience major resettlement effects, i.e. they are physically displaced and/or lose 10% or more of their productive, income-generating assets. distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement and specifically include: Women-headed households, widows, orphans, disabled persons and elders without family. Vulnerable groups also include indigenous people and landless farmers/households.

9 CONTENTS I. INTRODUCTION...1 A. THE SUBPROJECT BACKGROUND...1 B. ULEE LHEUE ROAD SUBPROJECT LOCATION DESCRIPTION...2 C. SUBPROJECT DESCRIPTION...2 D. SUBPROJECT BENEFITS AND IMPACTS...3 E. MEASURES TO MINIMIZE IMPACTS...5 F. OBJECTIVES OF ULR SUBPROJECT LAND ACQUISITION AND RESETTLEMENT PLAN...6 II. SOCIO-ECONOMIC PROFILE...8 III. A. IDENTIFICATION OF APS AND DATA COLLECTION METHODOLOGY...8 B. ULEE LHEUE ROAD SUBPROJECT SUB-DISTRICT POPULATION AND ECONOMY...9 D. CENSUS AND SOCIO ECONOMIC STUDIES FINDINGS...11 C. PERCEPTIONS OF THE PROJECT...16 RESETTLEMENT POLICY FRAMEWORK AND ENTITLEMENTS...17 A. INTRODUCTION...17 B. POLICY FRAMEWORK REVIEW OF NATIONAL AND PROVINCIAL POLICIES AND ADB REQUIREMENTS...17 C. RESETTLEMENT PRINCIPLES AND ASSISTANCE...17 D. ENTITLEMENTS TO COMPENSATION AND ASSISTANCE...18 E. LAND AND ASSET VALUATION AND NEGOTIATION...21 F. COMPENSATION FOR LANDS WITH UNKNOWN OR UNRESOLVED OWNERSHIP ISSUES...22 G. RELOCATION STRATEGY...22 H. RESTORATION OF LIVELIHOODS...22 IV. STAKEHOLDER PARTICIPATION AND CONSULTATION...25 A. INTRODUCTION...25 B. CONSULTATION MECHANISMS...25 C. SCOPE OF CONSULTATION...25 D. DISCLOSURE OF RESETTLEMENT PLAN...26 E. GRIEVANCE PROCEDURE...27 V. INSTITUTIONAL FRAMEWORK...28 VI. MONITORING AND EVALUATION PROGRAM...30 VII. LAND ACQUISITION BUDGET AND FINANCING...32 VIII. IMPLEMENTATION SCHEDULE...33 Annexes 1 Ulee Lheue Road Schematic Map 2 a. List of People Losing Land b. List of Affected Village-owned Lands c. List of Affected Government-owned Lands d. List of Affected Small Shop Owners 3 Key Dates : Preparation and Consultation Activities 4 Draft Document for Public Disclosure 5 Terms of Reference: ETESP External Resettlement Monitor

10 I. INTRODUCTION A. The Subproject Background 1. Although infrequent, tsunamis are among the most terrifying and complex physical phenomena and have been responsible for great loss of life and extensive destruction to property. Because of their destructiveness, tsunamis have important impacts on the human, social and economic sectors of societies. 2. On 26 December 2004 a devastating earthquake measuring 9.0 on the Richter Scale struck the west coast of Indonesia s North Sumatra, its epicenter 150 km west of Meulaboh, Aceh. The quake triggered tsunamis which resulted in the death of more than people in more than 10 countries. Of those, around people (79%) were reported killed in Aceh and North Sumatra Province. In addition to the great loss of life, the tsunami also caused major damage to property, livelihood and infrastructure. Around 80% of the global damage from the December tsunami was estimated to have occurred in these two Indonesian provinces. 3. ADB s response to the tsunami emergency in Indonesia was to make available to the Government of Indonesia from the Asian Tsunami Fund (ATF) a Grant for $290million for the Earthquake and Tsunami Emergency Support Project (ETESP). The Grant Agreement between the Government of Indonesia (GOI) and the Asian Development Bank (ADB) was signed on 29 April The overall goal of ETESP is to help rebuild the regions of Nanggroe Aceh Darussalam (Aceh) and North Sumatra provinces, including Nias Island (Project Provinces) affected by the 26 December 2004 disaster and support their economic revival in order to meet the Millennium Development Goals (MDGs). The Grant will: (i) facilitate economic revival in the affected regions of the Project Provinces, through restoration of livelihoods; and (ii) restore essential public services and rebuild infrastructure ETESP encompasses 12 components, including the Roads and Bridges Component with an allocation of US$38.5million. The Roads and Bridges Component (Phase 1) has three main focus areas, namely: a) The national East Coast Road (ECR) from Banda Aceh to the North Sumatra border (490km), which provides access to all parts of Aceh from the large seaport at Belawan, near Medan, in North Sumatra. Works in this area are subdivided into 2 general sections. Km (SP2) has no land acquisition or resettlement impacts. Km (SP3) has limited land acquisition and resettlement and for which an abbreviated LARAP has been prepared; b) The strategic national road from Banda Aceh to Krueng Raya, which provides access to the important sea port of Malahayati, about 33km to the east of Banda Aceh. Works in this area (SP1) do not entail land acquisition or resettlement; and c) The strategic roads joining Banda Aceh to the local port of Ulee Lheue and then on to the West Coast Road (WCR) at Simpang Rima. The West Coast Road supplies the devastated towns along the west coast of Aceh down to Meulaboh. This LARAP covers land acquisition and resettlement issues in the proposed works in this area (SP4 or ULR Subproject), excluding impacts associated with the Bridges Component which are covered in a separate LARAP that was earlier submitted by BRR and approved by 1 Grant Agreement Grant Number 0002-INO (SF). Special Operations Asian Tsunami Fund 1

11 ADB/EMS in consultation with the Resettlement Specialist from the Southeast Asia Department. B. Ulee Lheue Road Subproject Location Description 5. Aceh is made up of 17 districts (kabupaten) and 4 municipalities (kota). The damage and losses from the earthquake and the tsunami affected 17 out of 21 districts of Aceh and two districts in North Sumatra. In some areas, the tsunami wave reached farther than five kilometers inland, destroying crops and killing livestock as well as sweeping through houses The Ulee Lheue Road (ULR) Subproject begins within the municipality (kota) of Banda Aceh and continues through the district of Aceh Besar to link up with the West Coast Road. Kota Banda Aceh, the capital of Aceh Province, is situated on the lowland delta and is comprised of 9 sub-districts (kecamatan). Banda Aceh was the hardest hit by the tsunami in terms of casualties and damage as the wave cut deeply into the densely populated areas of the city. Aceh Besar geographically is comprised of coastal lowlands, the location of all the settlement areas, and forested hills. The tsunami waves destroyed most of the district coastal zone, including the lowland settlement and cultivation areas. Public infrastructure, settlements, and social facilities such as schools and health centers were destroyed, severely affecting the social and economic conditions of the residents. 7. Within Kota Banda Aceh, the ULR passes through 8 villages in the sub-district of Meuraxa, 2 villages in sub-district of Jaya Baru. In Aceh Besar, the ULR passes through 3 villages in the sub-district of Peukan Bada for a total of 13 villages. Located close to Banda Aceh, these villages prior to the tsunami provided housing areas for employees who commuted to work in the urban centre as well as for those making a living through the provision of goods and services for the urban market. In 2003, services and trade were the main source of income in 13 of the 16 villages in Meuraxa, in 7 of the 9 villages in Jaya Baru 3 as well as the Peukan Bada ULR Subproject villages of Paya Tieng, Lam Geu Eu and Lam Lumpu. 8. Prior to the tsunami the ULR area was comprised of both elite housing areas and more modest housing stock. 116,880 housing units were destroyed, out of a total of 820,000. Further, about 152,000 housing units (19%) suffered damage estimated at over 50% of their value. C. Subproject Description 9. The Ulee Lheue Road Subproject (hereafter referred to as the ULR Subproject) will rebuild and widen sections of the road leading from Banda Aceh to Ulee Lheue (Laguna Bridge) by 9 meters and from Ulee Lheue (Laguna Bridge) to the junction with the West Coast Road (WCR) by 4 to 6 meters. The Banda Aceh to Ulee Lheue (Laguna Bridge) section of the road is 5.28km in length. The Ulee Lheue to Simpang Rima section is 3.7km, for a total ULR Subproject proposed road works of 8.98km. A schematic map of Ulee Lheue Road is shown in Annex The works under the ULR Subproject (SP4) consist of: a. Rebuilding the Banda Aceh to Ulee Lheue to Simpang Rima roads, increasing the width and improving the surface; 2 UN-ESCAP, 2005, Social-related needs of people in the Tsunami affected locations in Indonesia. A study of affected people in Banda Aceh 3 ADB, 2006, Mapframe 3.0, Manila 2

12 b. Replacement and/or upgrading of the two damaged bridges the Laguna Bridge and the Lamjame Bridge 4 ; c. Landscape improvement and repairing damaged pavement and road shoulders caused by tsunami incursion; d. Safety improvements including guardrails, road line markings, signage, bridge handrails. For sustainability reasons, the pavement materials will be crushed well graded rock rather than the uniform rounded river gravel currently used; e. Substantially rehabilitating roadside drainage to increase road stability; and f. Replacing old and damaged trees with fast growing local varieties to provide shade along the roadways. D. Subproject Benefits and Impacts 11. Benefits: The ULR Subproject will benefit the Kota Banda Aceh community as well as the multitude of villages with local roads feeding into the ULR artery. The ULR links the residents of these regions with the urban centre as well as with the West Coast Road. The road improvements will permit greater traffic flow, thereby increasing business opportunities for those with access to the ULR. Commuters and service providers who live along the ULR but work in the urban centre of Banda Aceh will have increased ease of travel and reduced vehicle operating costs. Access to existing and future tsunami memorials such as the mass grave will be enhanced through improved roadway design and alignment, and the widened roadway will guarantee easy access for those wishing to pay their respects. 12. Benefits will accrue to the population from the re-establishment of economic activities in the area due to improved access to the urban market, increased safety as a result of a better designed escape route and the promise of increased return from tourism development. In addition, the northern coastal region in Aceh Besar was a former conflict area and is being rehabilitated to encourage integration of the population into the broader social strata. 13. The widening of sections of the ULR is an essential part of the reconstruction process. Pre-tsunami traffic conditions on the ULR indicate high traffic levels, congestion and crowded roadways. Technical meetings held with all stakeholders in March 2006 identified the need to widen the road for a number of reasons: a) In the event that another tsunami should occur, the ULR is the major escape artery to higher ground for people living on the delta in Kota Banda Aceh and Peukan Bada. Newly developed village escape roads in Meuraxa, Jaya Baru and Peukan Bada feed onto the ULR. In December 2005 a tsunami warning siren was installed at Ulee Lheue and will immediately warn inhabitants of impending danger, allowing them to flee via the ULR. b) Upgrading the ULR is in line with the vision of making Ulee Lheue Island and its approaches a religious and historical tsunami memorial area for visitors who lost family and friends in the tsunami as well as those who wish to pay respects to the tragedy. c) An improved ULR will better support the reconstruction of the Banda Aceh fishing industry and increased passenger service to Sabang, Pulau Weh. 4 A separate LARAP was prepared and submitted for this component of SP 4 which has been reviewed and approved by ADB-EMS in consultation with the Southeast Asia Department Resettlement Specialist. 3

13 14. Land acquisition impacts: The road widening will require the acquisition of strips of land from land owners along the proposed roadway alignment, the removal of fences, the relocation of small informal shops and replacement of existing trees. The types of losses include the following: (i) (ii) (iii) (iv) (v) (vi) Loss of narrow strips of privately-owned land including lane ways; Loss of strips of village owned land; Loss of strips of government owned land for community services/public facilities/offices; Loss of fences; Relocation of 26 small informal shops; and Cutting of trees currently located in the ULR right-of-way (RoW). 15. The ULR Subproject area was badly damaged by the tsunami, with the result that there are very few remaining private or public structures and/or assets on the land to be acquired. A total of 5.07 ha of privately-owned land need to be acquired, comprised primarily of residential land (94%) and a small proportion (6%) of fishponds. In terms of privately-owned structures, the subproject will affect 2 temporary housing units, 3 fences, and 26 small informal shops. To date, compensation for residential land acquired has been completed for approximately 60% (314) of the 524 privately owned plots. 16. Owners of a small number of the plots to be acquired (11 plots, including 3 where the owner is deceased but heirs have not come forward) have not yet been identified, and 28 plots are under dispute due to multiple heirs/claimants. Hence, exact data on the number of persons losing land is still incomplete. The estimated numbers of affected structures and persons who may experience losses are shown on Table Some village-owned lands along ULR will also be affected by the proposed road widening. Field measurements identified a total of 30 village-owned plots with a combined total of 0.49 ha will partially be affected. These lands include donated lands (waqaf) and villageowned lands intended for various community facilities i.e. mesjid, youth centers, village office, puskesmas/health office, graveyard, etc. 18. One of the affected lands is an old public grave yard. The proposed alignment will affect ten graves. Consultations have been made with the concerned families who agreed to move the remains of their loved ones to another site. As agreed, each family was paid 400,000 rupiah as compensation. 19. A number of government-owned lands will also be needed for the subproject. A total of 10 government-owned plots with a total area of 0.15 ha will be partially affected. These plots are portions of government/military/police offices or stations (i.e. PLN, Customs, police, military, Transport Safety), hospital, public market and elementary school. No compensation is envisioned for affected government-owned land. Specific arrangements have been made with the heads of the concerned agencies on the planning and adjustments that need to be made for these plots. 20. The 26 small shops to be affected by the subproject will need to relocate. Thirteen (50%) of these shops are owned by members of the landowners family or are renting from the landowners and have the option to simply move back to the unaffected portion of the properties. Other shops may need to find another place to continue their livelihood. The two temporary shelters built by the NGOs in two plots can also be moved to the unaffected portion of the plots. 4

14 21. The subproject will also temporarily affect the village roads and private access roads feeding into the main road. Access for these roads will be maintained at all times during construction and will be fully restored upon completion of the civil works. Table 1: Summary of Key Assets/Land Acquisition a Impact Assets Lost Estimated Number of APs Loss of private residential/commercial land b 10% or less of land affected % of land affected 31-60% of land affected 61-90% of land affected more than 90% of land affected Loss of agricultural (fishpond) land 10% or less of land affected more than 10% of land affected Relocation/loss of structures Small shops Temporary shelter Fences (2 private and 1 gov t) ha ha ha ha ha ha ha 26 shops 2 units 3 units Loss of village-owned land including waqaf 3,148 sqm 21 plots (donated) land for community purposes Loss of government-owned land 3,133 sqm 9 plots Loss of trees planted by the Provincial Gov t 139 trees - a These impacts exclude those caused by the Bridges Component which are covered in a separate LARAP. b This includes land owned by one prep school in Peukan Bada (TK Nanta Setia). Also, 28 APs are among several claimants/heirs to their plots, while 11 APs are as yet not identified E. Measures to Minimize Impacts 22. Consultations conducted with various stakeholders in March 2006 considered a number of options regarding the ULR Subproject engineering designs. These options included refurbishing the previous roadway through addressing the tsunami damage to the road, bridges and drains. Refurbishing the previous roadway would have required the least land acquisition as well as being the least cost option. This option was however considered inadequate given the Ulee Lheue Road s significance as a historical/memorial roadway, while also comprising an important community transportation link and the future tourism importance of the area serviced by the ULR. Of most importance, the building of the wider road is part of the rapid evacuation planning for coastal areas through links with village escape roads. 23. Efforts have been undertaken while finalizing the road alignment to minimize the land acquisition impact. Extensive consultations have been held with the people owning land along the ULR to minimize impacts through changes in road alignments. Measures to minimize social impacts of the ULR Subproject are outlined in Table 2. 5

15 Table 2: Measures to minimize land acquisition and resettlement impacts Location Impact before mitigation Action taken Result Lamjamee bridge area One AP losing significant portion of land. road realigned Land loss was reduced and shared with another AP. Ulee Lheue junction Entrance of the tsunami mass grave will be affected road realigned Impact was avoided. Paya Tieng Frontage of new commercial enterprise will be affected Road realigned Impact was avoided. F. Objectives of ULR Subproject Land Acquisition and Resettlement Plan 24. This Land Acquisition and Resettlement Action Plan (LARAP) was prepared based on the principles laid out in the ETESP Land Acquisition and Resettlement Policy Framework and Procedural Guidelines (LARPFPG) as agreed between the Government of Indonesia (GOI) and ADB. The following broad objectives were followed in its preparation: Involuntary resettlement is to be avoided or at least minimized. Compensation will have to ensure the maintenance of the APs pre-project standards of living. The APs should be fully informed and consulted on LAR compensation options. The APs social and cultural institutions should be supported and used as much as possible; The APs should be integrated economically and socially into host communities. Compensation activities will be carried out with equal consideration of women and men; in the case of this Project particular attention will be put to the right of women, widows, orphans, and elders without family to inherit the land rights of their deceased husband or father; Lack of formal legal land title should not be a bar to rehabilitation. Particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help them improve their status. LAR should be conceived and executed as a part of the project and the full costs of compensation should be included in project costs and benefits. Compensation and resettlement subsidies will be fully provided prior to ground leveling and demolition. 25. The primary purpose of the LARAP is to identify impacts and to plan measures to mitigate these impacts, compensate for various unavoidable losses generated by the ULR 6

16 Subproject and provide rehabilitation assistance to APs where needed. Given the dual objectives of ETESP of helping restore the livelihoods of tsunami-affected people and rebuild infrastructure, this LARAP also describes actions to be done to help link with ongoing livelihood restoration support by the international community in the ULR area to include subproject APs who lost their livelihoods due to the tsunami. 7

17 II. SOCIO-ECONOMIC PROFILE A. Identification of APs and Data Collection Methodology 26. Socio-economic data on the ULR Subproject area and the affected persons were derived from available databases as well as ULR Subproject specific surveys. This data presents a snapshot in time of affected persons, recognizing that population changes are occurring on a daily basis as the people readjust and rebuild. This chapter presents an overview and socio-economic profile of the ULR Subproject region, socio-demographic profiles of villages through which the ULR passes and information about the present circumstances of the people affected directly by the ULR Subproject to determine the nature and significance of the ULR subproject impacts and appropriate actions to undertake. 27. Collecting accurate socio-economic information on the APs in the ULR area is a difficult task. Because of the massive loss of life, damaged land boundaries, the dispersed population and changing settlement patterns of the tsunami-affected population in these areas, it is difficult to systematically identify and locate the APs. In some cases, heirs of deceased land owners are either unknown or cannot be contacted. Further complicating this difficulty is the interview fatigue that many tsunami victims experience as a result of ongoing consultations and interview requests made by NGOs, donors and government agencies. 28. At the same time, processes to identify legitimate land owners have been completed. In the aftermath of the tsunami, land boundaries, familiar features and many landowners had disappeared forever. More than half a million affected people have no evidence of their property rights. To address this calamity, the 'Reconstruction of Aceh Land Administration System' (RALAS) project was initiated. This project, funded by the Multi-Donor Fund (MDF) and implemented by BPN (National Land Agency), is aimed at restoring the land administration system in Aceh and land rights to owners. Under this project, property boundaries and ownership are determined through a process of community driven adjudication. The expected result is to re-establish the cadastral map of the villages and sub-districts covered by the project and allow the issuance of free land titles to confirmed landowners. Resolving inheritance issues, land disputes and protection of women and orphans are central to the implementation of this project. 29. The NGO facilitated community mapping serves as the initial input in determining property boundaries and ownership. In the ULR Subproject area, the community mapping exercises facilitated by UPLINK were completed in January These maps were used as the initial reference in determining APs identities for the proposed ULR road widening. The BPN plot measurement and certification process along the ULR is still ongoing and all land certificates have not yet been issued. The list of APs for the ULR Subproject is based on a combination of informal AP identity information contained on the RALAS maps and legalized APs as determined by the BPN certification process. The list of APs will be updated as the certification process proceeds and more heirs are confirmed/validated or identified. 30. On September 2006, the BRR ULR Subproject Satker marked the RoW for the widened ULR with yellow markers every 50m. Between September 15 th and 30 th, the land parcels to be acquired were measured. From the measurement data linked to the RALAS maps, the Land Acquisition Committees developed the initial list of Affected Persons. The census of landowners/heirs initially identified 544 APs (See Annex 2 for the list of APs). This 8

18 list formed the basis for subsequent consultations with affected persons, and continues to be updated as BPN proceeds with plot measurement and certification. 31. Socio-economic survey and key informant interviews: Brief socio-economic surveys were conducted with affected persons during the initial vetting of land ownership documents. 128 (approximately 24% of all APs) affected persons or their representatives (in the case of multiple heirs) were interviewed between end November early December in the Meuraxa and Jaya Baru camat s (sub-district head) offices and in the Paya Tieng, Lam Geu Eu and LamLumpu geucik s (village head) offices. An inventory of existing informal small stalls within the ROW was completed November 30 th. This inventory marks the cut-off date, which was posted at the mosque and announced by the camats. A survey of the 29 stall owners was completed in mid-december and the findings incorporated into the APs socio-economic profile. Follow-up interviews with key informants (village leaders, BPN officials) and review of map records at BPN was done in February 2007 to augment and validate some of the data collected earlier. 32. The Nanggroe Aceh Darussalam Population Census of 2005 (SPAN 2005): SPAN is a population census conducted by BPS (National Statistics Bureau), BAPPENAS (Planning Department) and UNFPA (along with CIDA, AusAID and NZaid as donor partners) presenting population figures based on geographic location, socio-economic conditions and tsunami impact. With support from ADB, an excel-based database per village (Mapframe) was developed for use by governments, donors/aid agencies and NGOs. SPAN 2005/Mapframe version 4.0 was used as an additional reference for socio-economic information on the villages along the ULR. B. Ulee Lheue Road Subproject Sub-district Population and Economy 33. Sub-district population pre- and post-tsunami: The Ulee Lheue-Simpang Rima Road passes through two sub-districts (Meuraxa and Jaya Baru) in Kota Banda Aceh and one subdistrict (Peukan Bada) in Aceh Besar. The population of Meuraxa in 2004 prior to the tsunami was 31,218 people, comprising 6496 households. The current population is listed as 12,856 5, or 41% of the pre-tsunami population. The present population of Jaya Baru is 18,011 as compared to its pre-tsunami population total of 22,005. For Peukan Bada, the tsunami resulted in a significant population decline from its 2004 population of 18,321 with approximately 54% of the total population being lost. This population loss occurred in most villages, but more significantly in those immediately adjacent to the coast. 6 Table 3 shows these figures. Sub-district Table 3: Pre- and Post-Tsunami Population ULR Subproject Sub-districts # of villages # of villages severely damaged by tsunami Population 2004 (before tsunami Population Dec 2005 (after tsunami) % of population change Present Population (2006) Meuraxa ,218 8,497-73% 12,856 Jaya Baru ,005 16,019-27% 18,011 Peukan Bada ,321* 8,449* -54% 11,051* Sources: Meuraxa and Jaya Baru camat s office *Spatial Planning and Environmental Management (SPEM) Meuraxa Camat September SPEM Peukan Bada Field Assessment Report 9

19 34. Economy: In Aceh, the informal economy provides a large number of women and men of all ages, but especially those entering the labor market, with opportunities to earn a living. Prior to tsunami, the economy of the ULR subproject villages was dominated by the service, trade and informal sector. According to the damage assessment, after the housing sector, the largest damage and losses of the disaster were in the trade and industry sector. The analysis shows as many as 80,000 small enterprises have been destroyed, providing income to some 140,000 people in the affected areas. During 2006, although wages have increased in Aceh Province, the rate of inflation shows prices have risen more sharply than the rest of Indonesia. The increase in cost of living offsets the benefits of higher wages. The volume of imports that resulted from large-scale reconstruction, coupled with decreased export capacity, has resulted in a considerable trade imbalance in the Province. 7 C. Socio-economic Condition in the ULR Villages 35. Within the sub-districts of Meuraxa, Jaya Baru and Peukan Bada, the ULR Subproject transects the villages of Ulee Lheue, Asoe Naggroe, Gampong Pie, Lambung, Cot Lamkeweuh, Blang Oi, Gampong Blang and Punge Ujong in Meuraxa, the villages of Lamjamee and Ulee Pata in Jaya Baru, and the villages of Paya Tieng, Lam Geu Eu and Lam Lumpu in Peukan Bada. A general picture of the post-tsunami social and economic condition in these villages can be derived from the population census (SPAN 2005) conducted by BPS, BAPPENAS and UNFPA. A total of 1,170 surviving residents (71% males and 29% females) were recorded as residing in the 13 ULR villages during the census. 36. In the 13 ULR villages, males account for about 72% of the population. This gender imbalance is more pronounced in Jaya Baru where 79% of the recorded residents are males. The number of children killed was also very high, with some villages reporting the death of all children under 5 years old. The 2005 count places children in these villages below 15 years of age at 13% of the population. 37. The tsunami also had a devastating effect on family structures, resulting in the death of one or both spouses. Approximately 15% had lost a spouse, although almost one-fourth of Meuraxa s male population had lost their wives. Figures on Internally Displaced Persons (IDPs) collected soon after the tsunami also indicate that over half of the men and women surveyed were IDPs at the time. The Peukan Bada data indicates that all of those surveyed were IDPs, perhaps living in temporary shelters provided in the villages. Over 92% of survivors in the ULR Subproject villages lost their houses, and 87% lost household members. The ULR villages in Jaya Baru suffered the most impact, with 100% reported losing their houses, and over 96% reported losing household members. 38. In 2005, approximately 30% of the residents in the ULR villages were living in tents, with another 35% living in houses, most likely with friends or relatives in other areas. When asked where they would prefer to live in the future, almost 100% of those surveyed in Meuraxa expressed their intention to return to their home village, with 78% of those in Jaya Baru expressing the same intention. In Peukan Bada, less than 2/3 of the survivors intended to return. 39. In the months following the tsunami, the population began to relocate to more permanent housing. Of those surveyed in the SPAN 2005, approximately 80% were living in physical 7 BRR 2006 Progress Report 10

20 structures as opposed to tents. Of these physical structures, 71% were built after the tsunami. About 8% of inhabitants continued to live with relatives. Approximately 40% of the population surveyed reported that their main source of drinking water at this time was bottled water. About 22% relied on wells, with 16% having access to piped water. 62% reported using toilets with septic tanks % of those surveyed lost their primary source of income from the tsunami. However, during the SPAN 2005 census over 57% of males and 18% of females indicated that they were working. The largest proportion (24%) indicated that they were employees, with the next largest group (22%) indicating that they were running their own businesses. Approximately 1/3 of females surveyed indicated that they were not in the labor force. This is consistent with women working inside the home, since only about 17% women indicated that they were seeking work. D. Census and Socio economic Studies Findings 41. Most of the privately-owned affected plots are situated in Meuraxa-Banda Aceh (58.6%). The other 14.9% and 26.5% are in Jaya Baru-Banda Aceh and Peukan Bada-Aceh Besar, respectively. Affected plots in Meuraxa are situated in the villages of Asoe Nanggroe, Blang Oi, Cot Lamkeweuh, Gampong Blang, Gampong Pie, Lambung, Punge Ujong and Ulee Lheue. Affected plots in Jaya Baru are within the villages of Lamjamee and Ulee Pata. Those in Peukan Bada are distributed in the villages of Lam Geu Eu, Lam Lumpu and Paya Tieng (See Table 4). Table 4: Affected Private Plot by Sub district and Village Sub district/village Number of Affected Private Plots Meuraxa, Banda Aceh Asoe Nanggroe 25 Blang Oi 69 Cot Lamkeweuh 37 Gampong Blang 30 Gampong Pie 21 Lambung 32 Punge Ujong 21 Ulee Lheue 72 Jaya Baru, Banda Aceh Lamjamee 31 Ulee Pata 47 Peukan Bada, Aceh Besar Lam Geu Eu 74 Lam Lumpu 35 Paya Tieng 30 Total Source: census listing Percent Of the 524 affected privately-owned plots, 509 (97.2%) have known living claimants, 7 (1.3%) have deceased owners with either known heirs (4) or no known heirs (3), and 8 (1.5%) have owners not yet identified. Majority of the privately-owned plots (92.6%) have only one registered claimant/heir. However, there are a few plots (5.3%) which have several claimants/heirs. Most of the recorded claimants/owners of the affected land (96.7%) are living

21 In terms of gender, 76.7% of the APs are men, 21.2% are women, with the gender of the remaining 2.1% not known. 43. Almost half of the affected landowners (46.5%) currently reside in the 13 villages along ULR. However, a significant number (26%) own land in ULR but are residing elsewhere. There are also 27.5% whose current residence has not been determined See Table 5 below. Table 5: Survival, Land Claim Status and Residence of ULR Identified APs (n = 524) Land claim status One registered claimant More than one claimant/heir Owners not yet identified Survival status Living Deceased with known heir Deceased with no known heir Owner not known Gender Male Female Gender not known Current residence of AP/Heir Within the ULR village In another village, district or province Current residence not disclosed Number Source: census listing and interview with key informants Percent Most of the APs residing in ULR have already received housing assistance from BRR and its partners. Interviews with village leaders in Jaya Baru and Meuraxa revealed that 217 of the 244 APs residing in the ULR-Banda Aceh area have been assisted. Bulk of the assistance was provided by Up Link, which assisted 127 AP households. P2KP provided 31 units, while BRR/World Vision jointly provided 30 units. Other organizations that provided housing assistance in these ten Banda Aceh ULR villages include MDF, Turkey, CRS, Jenggalan Foundation, Lions Club, YKPI, etc. (See Table 6). None of these new housing units will be affected by the proposed widening of some sections of the ULR. NGOs and BRR have also provided housing assistance in Peukan Bada, Aceh Besar. However, information on this is still being collected. 45. A sample survey of 128 APs in November-December 2006 revealed that over half of the APs (54%) were engaged in private business ventures prior to the tsunami. This is consistent with the pre-tsunami socio-economic profile of the ULR where the single largest source of income was from the service and trade industry. These figures are shown in Table 7. 12

22 Table 6: ULR APs-Banda Aceh Area who Have Received Post-Tsunami Housing Assistance According to Donor Housing Assistance Provider UP Link P2KP BRR/World Vision BRR MDF Turkey CRS Jenggalan Foundation Jenggalan/P2KP Lions Club YKPI Number of Benefiting APs Total 218 Source: Interview with key informants/village leaders Table 7: Occupation of APs Prior to Tsunami Pre-Tsunami Occupation Number Percent Private business Housewife Government staff 11 9 Pensioners 5 4 Professionals (teacher, doctor, paramedic, etc.) Others (students, drivers, laborer, fisherman, farmer) 7 5 No answer 1 < 1 Total Source: AP Sample Survey, November-December The tsunami affected every aspect of economic life. Many assets were damaged or destroyed and business chains left in tatters. Even the loss of housing has an economic impact as homes often double as workplaces, for shops, cottage and small industries. The APs reported a wide range of pre-tsunami incomes from very poor (0 income - living with parents) to very wealthy at rp15million/month from business activities. These income ranges are consistent with the varied economic and occupational profile of the people living along the ULR. AP Sample Survey data is shown in Table 8 below. Table 8: Pre-Tsunami Income Levels of APs per Month Pre-Tsunami Income Level/month Number Percent Rp500,000 or less Rp600, mill Rp1.6mill 3.5mill Rp3.6mill and more 5 4 Total Source: AP Sample Survey, November-December

23 47. General information was collected on post-tsunami incomes of APs due to concern about distortionary data from heirs who currently do not reside in the ULR villages, and therefore may have other income sources unavailable to the original residents. Jaya Baru fishermen taking part in the AP sample survey stated that they had not yet started fishing again from anecdotal information, much of the reluctance to go back on the water is due to tsunami trauma. A number of respondents from Meuraxa reported a desire to start small businesses again, ranging from welding repair shops, to trading in goods, to raising cattle and ducks. 48. The tsunami caused a great deal of social disruption, particularly on the ULR. Immediately following the tsunami, donors and NGOs reported that many affected persons voiced fears about returning to their home locales close to the ocean and expressed determination to live closer inland. Two years later, when the Sample Survey was completed, 80% said that they hoped to live where they had resided prior to the tsunami although more than 1/3 were not living in their previous locations. One household had lost its land due to subsidence, and for now is living in the barracks. If the household size and numbers of respondents is extrapolated, the affected AP sample population would be approximately 1760 persons. Table 9 provides the findings on household size and residence location. Table 9: Household Size, Residence Location and Future Plans (n=128) Pre-Tsunami Income Level/month Number Percent Household Size More than Present Residence The same as pre-tsunami residence Location other than pre-tsunami location Barracks 9 7 Preferred Location of Future Residence Live in pre-tsunami location Live in another location Source: AP Sample Survey, November-December Socially Vulnerable Groups: The LARPFPG states that vulnerable groups, such as women-headed households, widows, orphans, disabled persons, elders without family are entitled to receive special assistance for house relocation/reconstruction. Likewise, efforts need to be made to ensure that indigenous people and landless households also benefit from tsunami rehabilitation/reconstruction assistance. As indicated by the preceding socio-economic data, particularly those statistics related to tsunami impacts and population decimation, many of the ULR Subproject APs would certainly be among the vulnerable groups. Many of the survivors in the ULR Subproject villages have been assisted to obtain housing, with an international focus on the most disadvantaged. 50. Initially, village leaders interviewed identified 18 APs which they consider vulnerable given their limited social/kinship support system or physical limitations. Orphans who are APs will be identified during the land payment process as guardians/responsible agencies come 14

24 forward with appropriate documentation. Due to the small size of houses being provided to APs, it will be difficult to house extended families, perhaps causing older persons to be without family support. During the LARAP implementation, the geuciks (village leaders) will be requested to provide additional information to the Project Implementation Consultant s Resettlement Specialist on APs requiring additional assistance due to their belonging to a vulnerable group. As the population adjusts (i.e. single heads of households remarry, extended families regroup) the circumstance of some vulnerable individuals will change, reflecting the ongoing extremely fluid social environment. 51. Gender: Around 21% of the recorded owners/claimants/heirs to the ULR affected private lands are women. However, this small percentage is partly due to the disproportionately high mortality of women during the tsunami. As revealed in the SPAN 2005 census, men comprise 72% of the surviving population in these villages. In Aceh, women historically and traditionally played strong roles in family and community affairs. Residential land was also traditionally inherited by the daughters, although this practice has been gradually diminishing. At present, participation in consultations and decision making of Acehnese women has been fairly limited. There are current efforts by BRR and its partners to improve this situation. One effort is the conduct of the mandatory gender sensitivity training among its staff/satkers, engagement of a full-time gender adviser to provide guidance and oversight on gender-related issues in subproject implementation, and organizing of a donor working group on gender. There has also been a heightened consciousness among donors and government on the risk of disenfranchisement of widows and orphans of their land rights. This consciousness is translated to specific measures to protect the rights of widows and orphans to inheritance and titling under the RALAS Project. Under this Project, new land certificates are issued in the name of the orphans or the widows (in case of common properties). The option for joint titling of spouses was likewise introduced. 52. Profile of Small Shop Owners: Another group of APs from the subproject are the owners of small shops who will need to relocate outside the road construction area. A total of 26 small shop owners were identified during the inventory and interviews conducted in December Most of the shop owners are men (22). Age of shop owners range from years. Three are widows and one handicapped AP. 53. These shops which were put up after the tsunami include 10 cigarette vendors, 4 motorcycle repair shops, 7 food stalls/coffee shops, 1 gasoline vendor, 2 cell phone voucher vendors, 2 small grocery stores and 1 furniture workshop. Fourteen of these shops are located on the land of a family/relative. Seven rent from the landowner, while 2 occupy the existing road right-of-way. When asked where they intend to relocate, 13 indicated that they will just move back to the unaffected portion of the plot where they are staying. Others have indicated tentative sites where they intend to transfer i.e. the pasar pagi at Punge Ujong, rent a private plot in Ulee Lheue and Cot Lamkuweh, a relative s plot in Lampaseh Kota. Four shop owners indicated that they will find a place to resume their business within Banda Aceh. To minimize the adverse impact of their relocation, some shop owners request compensation and assistance for the demolition and transport of their structures. Others request assistance in accessing additional capital for their livelihood. The list of the 26 affected shop owners is shown in Annex 2b. Assistance to these APs is discussed on the section on Policy Framework and Entitlements. 15

25 C. Perceptions of the Project 54. Knowledge and anticipated impact of the project: During the course of the perimeter survey, socio economic survey and community consultations, the affected persons showed a high degree of knowledge and awareness about the project. Information has been provided by local officials through meetings with the APs and through announcements posted at the local officials offices and at the mosque. Those APs residing outside of the area have been informed through direct contact from officials. The survey indicated that 98% of APs were in agreement with the ULR Subproject and were pleased with the negotiated price per m² which was much higher than the pre-tsunami market rate for the same land. 55. Positive and negative impacts of the ULR Subproject: The anticipated positive impacts were also assessed during the community consultations and from the small informal shop survey. The improvement in transportation is seen as a major positive impact for almost 100% of the APs. The other major positive impact is that APs say livelihoods and income will improve because the ULR Subproject will lead to increased traffic, increased business as well as future opportunities to increase tourism to the area. Such is the case for the 13 shop owners who do not need to relocate to another plot. A small number of the small informal shop owners fear that if they relocate, their income will decrease. This will be addressed through provision of a relocation allowance, compensation for affected structures, provision of transportation support and linking them with the ETESP micro-finance program in the area. Members of their households can also be considered for local employment. 16

26 III. RESETTLEMENT POLICY FRAMEWORK AND ENTITLEMENTS A. Introduction 56. This chapter discusses the national, provincial, Project level resettlement policies and legal issues involved in land acquisition and compensation. The chapter describes the principles and approach to be followed in minimizing and mitigating negative social and economic impacts by the Project. B. Policy Framework Review of National and Provincial Policies and ADB Requirements 57. The Land Acquisition and Resettlement Policy Framework and Procedural Guidelines (LARPFPG) sets out the Policy Framework and entitlements for the project based on the laws of the Government of Indonesia, ADB s Policy on Involuntary Resettlement (1995) and the ADB s Operations Manual F2(2006). The key legal documents for Land Acquisition and Resettlement (LAR) in Indonesia are Presidential Decree No. 55/1993 and Presidential Decree No. 36/2005 (amended by Presidential Decree No. 65/2006). The GOI Decree and implementing legislation supports the establishment of Land Acquisition Committees to undertake stakeholder consultations with all APs. PD 36/2005 on the other hand, provides for the appointment of independent land/asset valuation team to assist in determining replacement cost of acquired land. 58. This Land Acquisition and Resettlement Action Plan (LARAP) is guided by these GOI Decrees, ADB s Policy on Involuntary Resettlement (1995), ADB s Handbook on Resettlement (1998) ADB s Operations Manual F2 (2006) and entitlement benefits for replacement of assets (Govt. of NAD 2006). C. Resettlement Principles and Assistance 59. In general Indonesian Law and ADB Policy are consistent with each other. However, they differ in the following aspects 8 : (i) (ii) (iii) (iv) Whereas Indonesian law sets the tax value (N.J.O.P.) as the basic parameter for land valuation and relies on negotiation with the AP to define actual compensation rates in the direction of replacement cost, the ADB policy requires that APs are offered immediately replacement rates (with negotiation as a secondary instrument for minor adjustments). Whereas based on Indonesian law informal settlers are ineligible for compensation or rehabilitation, the ADB policy requires the rehabilitation of these latter. Whereas Indonesian practice tends to apply depreciation discounts to house compensation rates, ADB policy require full compensation at replacement cost; Whereas Indonesian law does not compensate business or severe losses, the ADB policy provides for compensation of business losses and special allowances to severely affected APs; and 8 Source: LARPFPG, ETESP Grant Agreement April

27 (v) Whereas Indonesian law does not provide for relocation subsidies, ADB policy requires that APs are indemnized for their transfer costs. 60. The above differences will be reconciled in favor of the requirements of ADB policy. This can be easily done as Indonesian law offers enough interpretive latitude to do so. D. Entitlements to Compensation and Assistance 61. The ADB Policy requires compensation for lost assets at the current replacement value to both titled and non-title holders and rehabilitation assistance to restore lost income and livelihoods. In the ULR Subproject, the absence of formal titles will not constitute a bar to relocation assistance and livelihood restoration. 62. As stated in the LARPFPG, entitlement provisions for APs losing land, structures and income and rehabilitation subsidies will include provisions for: permanent and temporary land losses, house and buildings losses, crops and trees losses, a relocation subsidy and a business losses allowance based on tax declarations and/or lump sums for actual losses. These entitlements are detailed below and are summarized in Table 10 Entitlement Matrix. (i) Permanent Agricultural Land will be compensated at replacement cost at pre- Tsunami or post-tsunami rates for land, whichever is higher, or for the productivity of the land without deductions for transition costs either in: (i) cash at market rates (if in project areas there are active land markets); or (ii) cash based on the reproduction cost of the affected plot based on productivity (when in project areas there are no active land markets). When more than 10% of an AP s agricultural land is affected s/he will receive an additional allowance for severe impacts corresponding to one year s produce from the land lost (as per LARPFPG). Note for ULR Subproject: AP claimants to the affected fishponds will be paid at replacement cost. Considering that post-tsunami land values are higher, these will be used for determining compensation amount. The nine APs who will lose more than 10% of their fishpond areas will be given additional allowance as provided for in the LARPFPG. (ii) Temporary Agricultural Land will be compensated with 1 year allowance corresponding to the produce of the affected land (as per LARPFPG). Note for ULR Subproject: For the ULR subproject, no temporary impacts on agricultural (fishponds) land are expected. The affected fishponds have been severely damaged by the tsunami and remain non-operational at present. Owners are hopeful that the compensation payments received will help them to rehabilitate their damaged ponds or try alternative livelihoods. (iii) Residential land will be compensated at replacement cost at pre-tsunami market rates (as per LARPFPG). Note for ULR Subproject: Bulk of the ULR affected lands is residential land. Claimants/owners/heirs to these affected lands will be paid at replacement cost at post-tsunami rates, which is several times higher than pre-tsunami levels. This 18

28 additional cash is expected to help provide tsunami affected APs to further improve their new houses or have additional capital to regain their livelihoods. (iv) Houses, Buildings and Structures will be compensated in cash or kind at replacement cost free of detractions for depreciation and transaction costs (as per LARPFPG). Note for ULR Subproject: The 2 temporary shelter units provided after the tsunami will be re-established in the unaffected portion of the properties. In the case of small shops whose structures can be moved without damage, assistance will be limited to assistance in dismantling and relocation of the structure. For fixed structures, compensation will be made based on replacement rates without depreciation and transaction costs. (v) Crops. Cash compensation at market rates to be paid to landowners and tenants based on their specific sharecropping agreements (as per LARPFPG). Note for ULR Subproject: No crops will be affected in the subproject. (vi) Trees. Cash compensation at replacement cost reflecting type, age and productivity (as per LARPFPG). Note for ULR Subproject: The 139 shade trees to be cut are all owned by the government. Hence, no compensation payment will be made. However, replacement trees will be planted in the new ULR right of way for aesthetic purposes. (vii) Businesses. If the business is lost permanently it will be compensated in cash equal to 1 year income based on tax declaration or, if this is unavailable, 1 year income based on local minimum salary; temporary business losses will be compensated in cash for the business interruption period based on tax declaration or, when this is not available, local minimum salary (as per LARPFPG). Note for ULR Subproject: Impact on the 26 small shops to be affected by the ULR is considered temporary since these shops are expected to be able to resume with their livelihood activities after reorganizing their shops in the same location (13 shops) or moving to/renting similar areas within the village or the City center.city. A one time relocation allowance will be provided based on the temporary business interruption during the period. Amount of compensation shall be based on the current minimum salary in Banda Aceh. APs were also offered stalls to rent at the Banda Aceh Public Market. However, the APs preferred to continue their trade along the road. The thirteen shop owners who indicated that they will just move back to the unaffected portion of the plot where they are staying will be assisted in moving their structures. To support those who seek assistance in obtaining additional capital for their businesses, coordination will be made by the Roads and Bridges PIC Resettlement Specialist with the three ETESP micro-finance conduits in Banda Aceh (PT BPRS Hikmah Wakilah) and Peukan Bada (PT BPRS Baiturahman and PT BPR Dr. Imarah Saya) and similar micro-finance programs/initiatives by other agencies in these areas. 19

29 (viii) Agricultural land tenants, sharecroppers and workers. Affected tenants or sharecroppers will receive cash compensation equal to 1 full year of income from the lost land. Agricultural workers whose contract will be interrupted will receive an indemnity corresponding to 3 months of income (as per LARPFPG). Note for ULR Subproject: No land tenants, sharecroppers or workers will be affected by the subproject. (ix) Relocation Subsidy. APs forced to relocation will receive a relocation subsidy sufficient to cover transport costs and living expenses for one month (as per LARPFPG). Note for ULR Subproject: A one time relocation allowance will be provided to those who choose to self-relocate based on the temporary business interruption during the period. Amount of compensation shall be based on the current minimum monthly salary in Banda Aceh (as per LARPFPG). (x) House renters. House renters who have leased a house for residential purposes will be provided with a cash grant of three months rental fee at the prevailing market rate in the area, and will be assisted in identifying alternative accommodation (as per LARPFPG). Note for ULR Subproject: No house renters will be affected by the subproject. (xi) Vulnerable APs. Women-headed households, widows, orphans, disabled persons and elders without family are entitled to receive special assistance for house relocation/reconstruction and be given particular attention. During LARAP implementation, their land rights will be carefully safeguarded. Specific livelihood improvement strategies for their benefit should be studied. These may include employment in subproject activities, training and assistance in accessing microfinance (as per LARPFPG). Note for the ULR Subproject : Further consultations and assessment will be done on the situation of widow-headed households, widow shop owners and orphans in order to determine possible additional assistance that would enable them to improve their condition. Initial assistance will be through linking with existing micro-finance/livelihood programs in the village. 20

30 Table 10: The Entitlement Matrix (Based on ETESP LARPFPG) Asset Impact Category Affected People Compensation Entitlement Arable Land Less than 10% of land loss with remaining land still viable Farmer/titleholder Replacement value at pre- or post-tsunami rates (whichever the higher) in cash or in kind, free of taxes or transfer costs. (including Tenant/leaseholder/ 1 year gross harvest of land in addition to crops compensation. fishponds) Informal settlers More than 10% of land loss Farmer/titleholder Replacement value at pre-tsunami rates at pre- or post-tsunami rates (whichever the higher) in cash or in kind free of taxes or transfer costs plus a severe impact allowance equal to market value of 1 year gross harvest of land beyond 10%.(additional to crops compensation) Temporary losses 1 year gross harvest of land in addition to crops compensation Tenant/leaseholder Severe impact allowance equal to market value of 1 year gross harvest of land beyond 10% (additional to standard tenant compensation and crop compensation). Residential/ Commercial Land Titleholder Replacement value at pre-or post- tsunami rates (whichever the higher) in cash or in kind free of taxes, registration, or transfer costs. Tenant/leaseholder 3 month rental allowance Informal settlers A plot in a government resettlement area or a self-relocation allowance. Houses, structures, facilities Owners including informal settlers Renters Cash at replacement cost or kind of affected items. For partial impacts: restoration in cash of the structure s affected section. Cash equivalent to three months rent at prevailing prices Crops Crops affected by LAR All AP including Cash at full market value. informal settlers Trees Trees affected by LAR All AP including Cash based on type, age and productive value of trees. informal settlers Business/ employment Temporary/permanent loss of business, or employment All APs including informal settlers Cash equal to 1 year income. if the loss is permanent. Cash for the time of business interruption, if the loss is temporary Relocation Transport/livelihood costs All APs affected by relocation Sufficient cash to cover transport costs and livelihood expenses for 1 month, to be calculated as minimum salary for 1 month Special assistance for vulnerable households All vulnerable APs Women-headed households, widows, orphans, disabled persons and elders without family are entitled to receive special assistance for house relocation/reconstruction and be given particular attention. During LARAP implementation, their land rights will be carefully safeguarded. Specific livelihood improvement strategies for their benefit should be studied. These may include employment in subproject activities, training and assistance in accessing microfinance. E. Land and Asset Valuation and Negotiation 63. The Land Acquisition Committees at the District Level (1 for Banda Aceh and 1 for Aceh Besar) have been formed and tasked to handle land price valuation, consultations and negotiations, with BPN (Land Agency) staff taking a central role. These Committees are supported by village committees headed by the geucik, together with sub-village leaders, traditional village leaders and representatives from the affected persons. The village committees help obtain information on recent private sales and assist in the consultation/negotiation work. The Committees also seek advice from an independent Land Valuation Expert (assessor) who provides comparative price information for comparable land 21

31 and sites. Considering that land prices in Banda Aceh and Aceh Besar have gone higher after the tsunami, the post-tsunami prices levels were used as basis. F. Compensation for Lands with Unknown or Unresolved Ownership issues 64. The owners of 2.1% of the affected plots have not yet been identified and some plots have unresolved ownership/inheritance issues. Owners of these plots remain eligible for compensation at price levels established during the land acquisition process. Efforts will be exerted to identify the owners or help resolve outstanding ownership or inheritance issues. All avenues to reach entitled owners will be pursued, including extensive data gathering by the village heads from surviving friends and relatives to provide potential claimant contact information as well as requesting these groups to use their informal networks to assist in this matter. The tsunami impacts have been broadcast far and wide since the tragic event, and additional media coverage concerning the unclaimed plots will be broadcast. In addition, a listing of plots in this category will be published twice in local and national newspapers in order to inform the owners or heir and enable them to come forward to file their claim. Radio announcements will also be made in local radio stations to widen the audience reach. An amount equivalent to the current valuation of these plots will be kept in a special account of the NAD Provincial Government for two years so that funds will be available to pay the legitimate land owners. G. Relocation Strategy 65. Various relocation options were explored concerning the shop owners affected by the ULR subproject in general: a. move back possible for cases where there is enough space in the remaining plot area. This option is possible and preferred by 13 affected shop owners. b. rent stall at the Banda Aceh Market this option was mentioned during the interviews. However, none of the 26 APs showed interest since their target clients are workers and residents in the Ulee Lheue area. c. self-relocate move to another place of their choice in the village or adjacent village. The remaining 13 APs preferred this option. H. Restoration of Livelihoods 66. Sustainable Livelihood Restoration Measures. The devastation for individuals and villages located along the ULR Sub-project was truly monumental. Donors and NGOs rushed aid to this area to rebuild infrastructure, livelihoods and communities. The ETESP sectors include the Livelihood and Microfinance Sub-Component (LMS) of the ETESP, designed to assist the recovery and growth of small and micro enterprises (SMEs) that comprise the backbone of the NAD-Nias economy. Objectives of LMS are: a. To help ensure the sustained provision of the means for the most vulnerable people and low income households to engage in viable economic activities; b. To help strengthen the NAD-Nias financial system so that financial institutions can viably sustain the widening and deepening of financial services 22

32 67. In addition to the funds available through the LMS, resources allocated by major players for livelihood restoration measures are substantial and will be available to serve the needs of the specified APs (9 fishpond owners and 26 small shop owners) as well as other ULR APs. It is estimated that the major players from the INGOs alone will have a budget of about $250 million over the next 3 years ( ) for livelihood support services. Table * indicates budget allocations from a number of organizations. Additional funds will be available through other UN Agencies such as ILO, IOM, UNIFEM, and FAO, as well as through the World Bank and the IFC. Table *: Livelihood Budget of Some Major Players Name of Budget Organisation 2005/2006 (in US$ M) Oxfam Save the Children 3 10 CARE Swisscontact CRS 13 + World Vision 5 15 MercyCorps Plan Int l 8 UNDP ADB 21 Total Source: LMS Report November 2005 Budget next 3 yrs (in US$ M) LMS has actively sought working relationships with major players (local or international, government or NGOs) engaged in similar activities in order to optimize the use of resources and to achieve synergy, while avoiding overlaps and dysfunctions. For this purpose and in cooperation with BRR, it has assisted in setting up the following: a. Livelihood Fund (LF) - through which ETESP grants allocated for the Livelihood Component of LMS will be channeled and accessed by intended users. b. Microfinance Innovation Fund (MIF) through which ETESP grants allocated for the Microfinance Component of LMS will be channeled and accessed by intended users. 68. Concrete steps will be taken to link the ULR Specified APs with the ETESP LMS activities through the conduct of orientation/socialization, and dissemination of information on available micro-finance support, application requirements and support modalities. Individual relocation action plans developed for the 26 small shop owners will list dates for focused livelihood restoration sessions with LMS and other micro-finance conduit staff, to be organized by the PIC Resettlement Specialist. Similar meetings will be held with the 9 fishpond owners. These preparatory meetings will include vllage heads and other interested APs in order to increase the benefit of the activity. Individual sessions will be held by livelihood specialists with each of the 9 fishpond owners to develop specific livelihood restoration approaches, to be assisted by the village head if desired. Opportunities will also be facilitated for the Specified APs to meet with other agencies offering programs of particular relevance to the ULR group. A meeting facilitation and data collection budget has been allocated to promote this activity. Success will be monitored by the independent team to be contracted through Syiah Kuala 23

33 University. The three micro-finance conduits (PT BPRS Hikmah Wakilah, PT BPRS Baiturahman, and PT BPR Dr. Imarah Saya) that were assisted under the LMS Program will be tapped to extend micro finance support to the ULR Specified APs. However, this will be done on a gradual basis since these agencies have also been badly damaged/weakened by the tsunami. Networking will also be done with similar initiatives from BRR and other donors. This task will be added in the Terms of Reference of the Social/Resettlement Specialist under the ULR Project Implementation Consultant. Likewise, the PIC shall track how many of the affected shops are able to resume their livelihood activities and assess impact on income levels. 69. At the same time, employment opportunities from the road construction will maximize the use of local skilled and unskilled labor in the 13 villages. To facilitate this, notice of job opportunities from the subproject will be posted in the villages and announced through the village leaders. 24

34 IV. STAKEHOLDER PARTICIPATION AND CONSULTATION A. Introduction 70. Involvement of the affected people is vital in planning and implementing an action plan, to get their views and to ensure their acceptance of the actions planned under the project. In every community, displaced and affected households will have certain grievances regarding the changes brought about by the ULR Subproject. In order to mitigate these grievances, it is vital to involve affected people in the process of consultation. This will give them a platform to voice their fears, insecurities and problems arising out of the impact of the work. BRR will also ensure that the affected population and other stakeholders are informed and allowed to participate actively in the ULR Subproject development process. This will be done throughout the project, both during implementation and monitoring of project results and impacts. B. Consultation Mechanisms 71. Preparatory work for the ULR land acquisition began in February 2006 with an exchange of letters between the Dept. of Public Works and the Governor. Land Acquisition Committees (LACs) were established in Aceh Besar and Kota Banda Aceh. In August 2006 a ULR land acquisition budget of rp29.22billion to be shared between BRR, the provincial government and Kota Banda Aceh was agreed. Consultations and discussions were held along the ULR with the APs and other stakeholders including local officials (geuciks, camats, keluara, imeuems, etc.) to inform stakeholders about the road improvement plans, identify concerns and seek feedback from the affected persons and village residents. Methods used during the consultations included: (i) (ii) (iii) (iv) (v) Public meetings; In camera small group discussions; Individual interviews; Group interviews; and Field level observations 72. The schedule of preparation and consultations is contained in Annex 3. C. Scope of Consultation 73. The primary objectives of the consultations were to: Understand views of the community on the proposed ULR Project land acquisition requirements; Identify and assess the major socio-economic characteristics of the affected persons to enable effective planning and livelihood rehabilitation; Obtain opinions of the affected persons on issues related to the land acquisition impacts; Establish a fair and equitable price per m² of land to be acquired; and To establish a forum for concerns related to ULR alignments and plans. 74. The consultation aimed both to provide information to the APs and answer their questions and concerns. They were also used to influence necessary ULR alignment changes to accommodate affected persons concerns. For example, one affected person felt that too 25

35 much of their land was required, and asked that the alignment be moved more towards the other side of the road. Following this request, the BRR Satker adjusted the road alignment. 75. Below is a brief process description of the completed and follow-up consultation activities for this subproject: (i) The Aceh Besar Land Acquisition Committee and the Kota Banda Aceh Land Acquisition Committee (LAC) have informed the villages about the ULR Subproject land acquisition requirements, its impacts, potential entitlements and grievance procedures. Notices informing about the meetings have been posted in the mosque and the camat s or geucik s offices. (ii) The APs have met independently with the camat or the village head (geucik) to discuss the ULR land acquisition needs and to set an initial price per square meter of land. (iii) The Land Acquisition Committee, the Land Valuation Team and the community AP representative have met for numerous price negotiations to achieve a price acceptable to all parties. (iv) Additional independent sessions/consultations have been held with the APs to discuss any issues arising from the proposed ULR alignment. Solutions for concerns raised have been sought. (v) To indicate agreement for the negotiated price, individual APs have brought forward their documents to the camat s/geucik s office. This information has been conveyed to the LAC. (vi) The negotiated compensation agreement will be signed by APs when completing the scheduled payments. (vii) An inventory and survey of small shops were conducted establishing November 30 as the cut-off date. (viii) The proposed civil works schedule will be posted in the mosque and in the camat s/geucik s offices. D. Disclosure of Resettlement Plan 76. The LARAP will be translated into Bahasa Indonesia and disclosed to APs immediately following approval of this Plan and will be posted on the ADB website. Contents of the summary LARAP to be disclosed to the APs in pamphlet form is presented in Annex 4. Disclosure of the LARAP will occur through meetings between the camat/geucik and the APs. These meetings will provide APs with information detailing: a. a description of the land acquisition plans and a schedule for implementation; b. details of the entitlements outlined in the LARAP and how APs will receive their compensation; c. an outline of the compensation process and negotiated compensation rates; d. an explanation of the disbursement of compensation process and the timing for compensation; and e. an explanation of the grievance procedure with accessible routes through which grievances can be lodged. 77. All APs will have the right to appeal against any aspect of the land acquisition process with which they disagree 26

36 E. Grievance Procedure 78. The main objectives of the grievance procedure are to provide an avenue for APs to voice dissatisfaction, make complaints or express grievances to village heads either verbally or in writing. APs consultation and participation mechanisms should effectively minimize the occurrence of major grievances. However, in order to ensure that the APs have avenues for addressing grievances related to any aspect of the preparation, implementation and monitoring of this Land Acquisition Planning document or the compensation process, procedures in accordance with the Presidential Decree No. 55/1993, Art and Regulation No. 1/1994, Art. 18 & 22 are in effect: (i) (ii) (iii) (iv) Any grievances should first be addressed within the community through the office of the camat/keucik; If the issue cannot be resolved satisfactorily, the APs can then appeal to the Land Acquisition Committee for assistance in the negotiation; If the AP is still not satisfied with the response then she/he has the legal right to submit the appeal to the Governor of the Province; and Finally if also at the Provincial level the complaint cannot be solved, the AP may if they wish seek satisfaction through the appropriate court of law. 79. If efforts to resolve disputes at the village and project level are still unresolved and unsatisfactory, APs have the right to directly discuss their concerns or problems with the BRR designated Grievance Focal Point for the ETESP Roads and Bridges Sector. 80. The ETESP Grievance Facilitation Unit to be formed under the BRR Supervisory Board (Dewan Pengawas) can also be contacted by APs and the general public on concerns related to the subproject. Likewise, APs can course their grievance to the existing kecamatan and citizens based Grievance Committees established by Transparency International Indonesia (TII) in Banda Aceh and the LSM-NGO Forum with which BRR has established close links. 27

37 V. INSTITUTIONAL FRAMEWORK 81. The Badan Rehabilitasi dan Rekonstruksi NAD dan Nias [BRR] is the Executing Agency [EA] for the ETESP Grant. Overall coordination and administration of ETESP, including those related to land acquisition or resettlement, is the responsibility of BRR as Executing Agency. On the other hand, the local government at the provincial and district levels are mandated by law to handle land acquisition requirements for development projects of government. Both BRR and the Provincial Government of NAD have officially endorsed the Land Acquisition and Resettlement Policy Framework and Procedural Guidelines (LARPFPG) for ETESP. The NAD Provincial Government has also directed District Governments in NAD to support ETESP and its guidelines related to land acquisition and resettlement. 82. BRR, through its Project Management Office [PMO] in Banda Aceh and a dedicated Project Management Unit [PMU] established specifically for the ETESP Roads and Bridges Component handle all roads and bridges subprojects financed under the grant. Implementation of the Subprojects is the responsibility of special project implementation unit(s), termed Satker(Satuan Kerja) established through the respective Implementing Agencies (IAs). 83. With regard to land acquisition/resettlement, BRR will perform the following tasks: (i) provide overall coordination for LAR related activities, (ii) supplement the Provincial Government s funds for land acquisition/resettlement compensation/rehabilitation assistance, (iii) lead (with UNDP support) the establishment of market reference rates for land valuation in tsunami affected areas, and (iv) engage an External Monitoring Agency (EMA) on land acquisition/resettlement. 84. The Ulee Lheue Road is a Provincial Road and is therefore under the jurisdiction of the NAD Provincial Government. Related to the ULR Subproject-Bridges Component, the Provincial Government co-decides with BRR the overall design of the subproject, shoulders 50% of the cost of land acquisition and resettlement, instructs the Kota/District Governments on the initiation of land acquisition activities, and provides oversight roles in the LAR implementation and other concerns related to the implementation of the subproject. 85. The Land Acquisition Committee (LAC) at the Kota Banda Aceh and Aceh Besar District will undertake the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) community consultations to engage APs; solicit AP input into the negotiation process; explain the LARAP and its entitlement policies and options, including the grievance procedures; undertake a verification process confirming individual s entitlements; negotiate compensation with identified APs; ensure that the appropriate payments are made and recorded by maintaining a database recording the identification and location of APs, inventory of losses, the compensation paid, and the date and method of payment; respond to grievances and complaints; provide a update reports to BRR/the governor on LARAP implementation. 86. In compliance with Presidential Decree (Perpres) 36/2005, the Independent Land Valuation/Assessor Team appointed by the Office of the Bupati of Kota Banda Aceh and Aceh Besar are responsible for determining current land prices in the area through review of recent 28

38 sale records, interviews with adjacent landowners, review of tax records (NJOP) and other possible references. The team also assists the Land Acquisition Committees in the conduct of consultations with APs. The team is composed of the sub district and village heads, traditional village leaders and a private land appraiser. 87. A firm was engaged by ADB to serve as Project Implementation Consultants (PIC) to support BRR and IA in the implementation of the Sub-Projects under the Roads and Bridges Sector of the ETESP. Specific tasks of the PIC include, among others: i) monitoring of the Contractors compliance with stipulated measures to mitigate, enhance or compensate for environmental and social impacts related to the implementation of Sub-Projects under the Sector; ii) iii) monitoring and reporting on overall sub project social and environmental impacts in accordance with GOI regulations, ADB guidelines on safeguards, and the particular requirements of the ETESP Grant Agreement; assistance to the Satkers and IA in the identification, facilitation, resolution, documentation and reporting of grievance from communities, groups or individuals related to the implementation of the Sub Projects; iv) assistance to the Satkers and IA in preparing requisite subproject Monitoring and Evaluation Reports (including LARAP internal monitoring) and Progress Reports during construction; and preparation of comprehensive Sub-Project Completion Reports when finished; and v) support those AP shop owners who seek assistance in obtaining additional capital for their businesses, by coordinating with the three ETESP micro-finance conduits in Banda Aceh (PT BPRS Hikmah Wakilah) and Peukan Bada (PT BPRS Baiturahman and PT BPR Dr. Imarah Saya) and similar micro-finance programs/initiatives by other agencies in these areas, under the LMS Component of the ETESP. 88. The BRR Supervisory Board (Dewan Pengawas) has the twin role of monitoring the implementation of the rehabilitation efforts and in receiving complaints from the public. A Facilitation Unit for ETESP shall be lodged within Dewan Pengawas. It shall be headed by a Facilitation Specialist (FS) who shall report directly to the Head of Dewan Pengawas and work closely with both the Dewan Pengawas Experts and the Grievance Focal Point at BRR on complaints and issues related to the subproject. The Unit shall have the following responsibilities related to the Bridges Component of the ULR Subproject: design and oversee the conduct of orientation on the ETESP grievance redress system for the Satker and village leaders coordinate/follow-up with BRR-Anti Corruption Unit, the Sector Experts from Dewan Pengawas on grievance/complaints Analyze trends and crosscutting concerns and propose actions to address these. Coordinate with the Adviser to the KPK in capacity building and advocacy activities. Refer corruption-related cases to KPK, through its Adviser, for further action. Help verify complaints If needed, serve as facilitator/mediator to settle conflicts/concerns between/among implementing agencies/communities/private sector 29

39 Obtain regular updates from the Roads and Bridges PIC and provide such updates to the concerned Dewan Pengawas Sector Experts for possible field validation Undertake monitoring of local (print and broadcast) media, including clipping, translating where needed. 89. Syiah Kuala University shall provide a team for the conduct of external resettlement monitoring for the subproject. This team will also be under the supervision of the BRR Supervisory Board. VI. MONITORING AND EVALUATION PROGRAM 90. Internal monitoring: The ETESP Roads and Bridges Project Implementation Consultant has been contracted to work with the BRR and the Satkers in an assist role. The Consultant shall assist BRR in the review and implementation of the necessary measures under the LARAP for the Bridges Component. The first internal resettlement monitoring report will be prepared upon completion of the compensation payments/rehabilitation assistance to all known APs, including those losing land or small shops/livelihood. The PIC Resettlement Specialist shall assist the Satker in this task. 91. The Project Implementation Consultant will also monitor contractors conformity with environmental and social impact controls required under the subproject and monitor impacts of construction activities. In the event that additional land acquisition and resettlement issues emerge during implementation, including any resulting from amendments or augmentations to the scopes of works, the Consultant shall assist BRR in the preparation and implementation of supplementary LARAP as and where required. The Consultant will assist BRR in the identification, facilitation of resolution, documentation, and reporting, of grievances from communities, groups or individuals who may consider that they have been adversely affected as a result of the implementation of the ULR subproject. 92. External Monitoring: External Monitors from Syiah Kuala University, under a separate contract with ADB-IRM and direct supervision of the BRR-Supervisory Board (Dewan Pengawas) shall be mobilized to undertake external resettlement monitoring of the ULR Subproject. The team of External Resettlement Monitors shall validate agreements made and documentation related to the preparation of the LARAP, identify resettlement impacts during subproject implementation, and assess conditions of people affected by subproject implementation and adequacy of support for restoring damages/losses to assets and livelihoods. 93. Specifically, the work of the External Monitors shall include the following: a. interview the affected persons (identified in the LARAP) to confirm the extent of impact of the subproject, their awareness of their entitlements under the LARPFPG and agreements reached with the LACs; b. validate if the assistance provided to the APs comply with the provisions of the Land Acquisition, Resettlement Policy Framework and Procedural Guidelines (LARPFPG) as agreed in the ETESP Grant Agreement; c. assess if there are impacts on the APs that were not foreseen during the LARAP preparation and if actions were undertaken to address these; 30

40 d. assess if appropriate assistance has been provided to vulnerable APs; e. determine if the standards of living of the APs have improved, remained the same or worsened and the factors behind these; f. verify from the field if there are APs who were not included in the LARAP and assess the subproject impacts on these APs; and, g. recommend appropriate measures, if needed, to ensure that APs are assisted to restore their living conditions and livelihood, or are at least not worse off as a result of the subproject. 94. The first external resettlement monitoring/evaluation will be done in May A follow up monitoring will be done after six months. Should there be unanticipated land acquisition/resettlement impacts that emerge during construction, further supplemental external resettlement monitoring may be done. The overall Terms of Reference (TOR) for the ETESP External Resettlement Monitor is shown on Annex Reporting and Web Uploading of Monitoring Reports: Results of internal and external resettlement monitoring reports shall be submitted to EMS/PMO for review. Once reviewed, the reports shall be uploaded by EMS/PMO into the ADB website. 31

41 VII. LAND ACQUISITION BUDGET AND FINANCING 96. The BRR, the Kota and the Provincial Government will be responsible for all land acquisition costs associated with the implementation of the LARAP. A budget of approximately rp37.92 billion has been established to complete all land acquisition and relocation activities associated with the ULR Project. This amount is based on entitlements and contingency costs for additional expenses related to implementation of the LARAP. Allocations have also been made for Land Acquisition Committee costs and administration. The budget breakdown is shown in Table 11. Table 11: Land Acquisition Budget Particulars/Items Units Quantity Estimated Budget (Rupiah) 1 Compensation for land Strips of private land in 36,765.1sqm at Rp500,000 per sqm Meuraxa 18,382,550,000 Strips of private land in 13,944.4 sqm at Rp300,000 per sqm 4,183,320,000 Peukan Bada and Jaya Baru Strips of village-owned land 4,267.5 sqm at Rp500,000 per sqm 2,133,750,000 in Meuraxa Strips of village-owned land 650 sqm at RP300,000 per sqm 195,000,000 2 Additional allowance for severely impacted fishponds 9 in Peukan Bada Severely impacted fishponds (9) 976 sqm at Rp200 per sqm 195,200 Small shops 26 units at Rp 3 million each 78,000,000 3 Compensation for structures 10 4 Relocation subsidy 11 Small shop owners 26 APs at Rp 820,000 each 21,320,000 5 Dismantling and Small shop owners 26 APs at Rp 1 million each 26,000,000 transporting shops 12 6 Support to livelihood restoration 13 Specified APs 9 APs losing +10% of fishpond areas and 26 APs relocating small shops. 26,000,000 Administration 7 LAC Administration ±1% of land purchase price 248,946,000 8 Internal Monitoring 14 Roads and Bridges PIC Consultant 200,000,000 9 External Monitoring 15 Syiah Kuala University 9,000,000, Contingencies (10%) 3,429,508,120 Total 37,924,589,320 9 Additional allowance for APs losing more 10% of their agricultural (fishpond) land is computed based on average pre-tsunami net annual income from the land. Assumption is that one hectare of tambak earns a net income of Rp500,000 per harvest x 4 harvests per year. 10 The amount for this compensation is based on a rough estimate of the replacement value of the materials (mostly wood and light materials) of the affected structure. This will be revised based on a more accurate determination of the quantities of affected materials. 11 Relocation subsidy is computed based on the current minimum wage in NAD of Rp820,000 per month. 12 Estimate for this assistance is based on the current daily rental rate for vehicle with driver and two laborers. 13 Support to livelihood restoration will be included in existing micro-finance/livelihood programs in the area. Coordination linking the APs to these programs is the responsibility of the PIC Resettlement Specialist. The small budget provided here will facilitate meetings and additional Specified AP livelihood restoration data collection activities if required. 14 Amount reflected in the LARAP budget represents estimated amount to be used by the PIC as part of their overall contract for internal LARAP monitoring activities. 15 Syiah Kuala University under separate contract will provide external resettlement monitoring for all ETESP subprojects involving land acquisition or resettlement. Under a separate line item, ETESP has contributed US$30,000 to BRR to facilitate the engagement of an external resettlement monitoring agency for ETESP 32

42 VIII. IMPLEMENTATION SCHEDULE 97. The LARPFPG states that in the case of ETESP, civil works can begin before all land payments have been completed, as long as agreements have been reached with all landowners concerning payment methods. The LARAP Implementation Schedule shown in Table 12 is based on this premise. Table 12: LARAP Implementation Schedule Activity Date Responsibility February to October 2006 Initiate and complete all land acquisition consultation and negotiation activities. Inform villages of land acquisition request Identification of APs, explanation of the land acquisition plan, entitlements and grievance procedures September/October 2006 September/October 2006 BRR SP4 Satker with Aceh Besar and Kota Banda Aceh Land Acquisition Committees LAC members LAC members and BRR SP4 Satker Negotiation of compensation with identified APs November 2006 LAC members, Land Valuation Team and BRR SP4 Satker Processing of AP verification documents November 2006 LAC members camats and keuciks March 2007 Payment of APs initiated (recorded in database) December 2006 April 2007 BRR and the Province provide funds to LAC. BRR disburses compensation. Tendering Process Initiated and Completed Jan/Feb 2007 BRR SP4 Satker Action Plan for the small shops developed and provided to ADB April/May 2007 Project Implementation Consultants and BRR SP4 Satker Livelihood restoration activities identified in small shops Action Plans initiated May/June 2007 successful Project Implementation Consultants and LMS specialists, followed by other completion of activity agency livelihood specialists as identified Payment of APs completed (recorded in BPN April/May 2007 BRR and the Province provide funds to formats) LAC. BRR disburses compensation. Entitlements identified in the RP provided to May 2007 Project Implementation Consultants and Specified APs. Relocation assistance for small BRR SP4 Satker shops implemented prior to the start of civil works. Compensation and Rehabilitation Assistance May 2007 Project Implementation Consultants (including provision of relocation assistance) Completion Report First External Monitoring Report May 2007 Syiah Kuala University ULR Civil works begins June 2007 BRR SP4 Satker Livelihood restoration preparation activities Late May Project Implementation Consultants and undertaken with severely affected fishpond successful LMS specialists, followed by other owners (9) completion of activity agency livelihood specialists as identified Quarterly Internal and External Resettlement Monitoring of livelihood restoration activities/progress and Identification of any issues affecting vulnerable groups and proposed solutions After start of civil works until completion Project Implementation Consultants and Independent External Monitors (Syiah Kuala University team) LAR Impact Evaluation June 2008 Independent External Monitors (Syiah Kuala University team) 33

43 Annex 1 Ulee Lheue Road Schematic Map New Shoreline Ulee Lheue Port Totally Destroyed Laguna Bridge: Km 4.3 Alignment Starting Point Lamjame Bridge: Km 9 35 Simpang Rima Intersection with West Cost Road