SRI: Additional Financing for National Highway Sector Project

Transcription

1 Resettlement Plan May 2011 Document Stage: Draft SRI: Additional Financing for National Highway Sector Project Hikkaduwa Baddegama Section of Hikkaduwa Baddegama Nilhena Road (B153) Prepared by Road Development Authority for the Asian Development Bank.

2 CURRENCY EQUIVALENTS (as of 11 May 2011) Currency unit Sri Lanka rupee (Rs) Rs1.00 = $ $1.00 = Rs ABBREVIATIONS ADB Asian Development Bank CEA Central Environmental Authority CSC Chief Engineer s Office CSC Construction Supervision Consultant CV Chief Valuer DSD Divisional Secretariat Division DS Divisional Secretary ESD Environment and Social Division GN Grama Niladhari GND Grama Niladhari Division GOSL Government of Sri Lanka GRC Grievance Redress Committee IOL inventory of losses LAA Land Acquisition Act LARC Land Acquisition and Resettlement Committee LARD Land Acquisition and Resettlement Division LAO Land Acquisition Officer LARS land acquisition and resettlement survey MOLLD Ministry of Land and Land Development NEA National Environmental Act NGO nongovernmental organization NIRP National Involuntary Resettlement Policy PD project director PMU project management unit RP resettlement plan RDA Road Development Authority ROW right-of-way SD Survey Department SES socioeconomic survey SEW Southern Expressway STDP Southern Transport Development Project TOR terms of reference WEIGHTS AND MEASURES Ha hectare km kilometer sq. ft. square feet sq. m square meter

3 NOTE In this report, "$" refers to US dollars. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

4 i CONTENTS EXECUTIVE SUMMARY...v CHAPTER 1 - PROJECT DESCRIPTION Description of the Road Project Project Profile Objectives of the Resettlement Plan (RP) Socioeconomic Benefits of the Project Methodology... 4 CHAPTER 2 - LEGISLATIVE AND POLICY FRAMEWORK Legislative Framework Policy Framework CHAPTER 3 SCOPE FOR LAND ACQUISITION AND RESETTLEMENT Potential Impacts of the Project Scope of Land Acquisition Type of Impacts Resulting Land Acquisition by DS Divisions Impact on Community / Common Property Resources Consultation Process for Land Acquisition and Resettlement Legal Framework for Land Acquisition and Resettlement CHAPTER 4 SOCIOECONOMIC PROFILE General Socioeconomic Condition in the Project Area Information of Displaced Persons / Household Heads Trade and Business Income Sources of DH Members Vulnerable DPs Gender Aspects Attitude of the DPs towards the Development of the road project Perceived Socioeconomic Impacts Perceived Social and Economic Advantages Indigenous People CHAPTER 5 INFORMATION DISSEMINATION, CONSULTATION PARTICIPATORY PROCESS Consultation process with agencies responsible for Land Acquisition and Resettlement Public Disclosure and Information Dissemination Consultation during RP preparation and implementation Information Disclosure CHAPTER 6 ENTITLEMENTS Highlights of Entitlements Project Entitlement Matrix CHAPTER 7 GRIEVANCE REDRESS MECHANISM CHAPTER 8 RELOCATION OF HOUSING AND SETTLEMENTS Options for Relocation of Housing and other Structures DPs Perceptions and Preferences... 58

5 3. Legal Arrangements for Tenure and Titles Social Integration CHAPTER 9 INCOME RESTORATION AND REHABILITATION Livelihoods Risks and Resources Income Restoration Programmes CHAPTER 10 RESETTLEMENT BUDGET Total Cost for Land Acquisition and Resettlement Rates Used in the Preparation of the Resettlement Budget Assistance to Vulnerable Groups and other Special Groups CHAPTER 11 IMPLEMENTATION SCHEDULE CHAPTER 12 INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT Project Management Unit ESD and Land Division Divisional Secretariat Construction Supervision Consultants (CSC) Institutional Arrangement to Attend to Gender Concerns CHAPTER 13 MONITORING AND EVALUATION... 74

6 iii LIST OF TABLES Table 1 Legislative GAP Analysis Table 2 Summary of Land Acquisition and Resettlement Impacts Table 3 Number of Displaced Persons and DP Households by DS Division and Type of Impact Table 4 Number of fully Displaced DP Households by type of Impact Table 5 Number of DP Households losing ownership / Access to land by land Tenure, Land use and Impact Table 6 Number of Affected Private Structures by Type of Structures and Degree of Impact Table 7 Materials of affected primary private structures Table 8 Livelihoods of DPs which are displaced by the Project (Owner only) Table 9 Monthly Income Derived by DHs in the Affected Business / Livelihood Table 10 Type of affected community / common structures and the Type of impact Table 11 Type of affected Utilities Table 12 Age of DP Household Heads disaggregated according to gender Table 13 Civil Status of DP Household Heads disaggregated according to gender Table 14 Educational Attainment of Household Heads disaggregated according to gender Table 15 Ethnicity of Household heads disaggregated according to gender Table 16 Size of DP Households Table 17 Age and Gender of partially Displaced Household Members Table 18 Civil Status of partially Displaced Household Members Table 19 Education of partially Displaced Household Members Table 20 Partially Displaced Household Members with Physical and Mental Disabilities Table 22 Primary and Secondary Sources of Income of Displaced Household Members (employed) Table 23 Distribution of Displaced Households according to income levels per DS Division Table 24 Vulnerable Displaced Households Table 25 DPs Perceived Adverse Social and Economic Impacts of the road project Table 26 DPs Perceived Social and Economic Advantages of the Road Project Table 27: Completed and Planned Public Consultation and Disclosure Activities Table 28 Adequacy of Remaining Land or Availability of Alternative Land for DPs to Continue Their Affected Trading/Business/Agricultural Activities or Residence... 57

7 Table 29 Compensation Preference of DPs Who Will Lose Land (Multiple responses) Table 30 Relocation preference of DP Households which need to relocate Table 31 Estimated Cost of Land Acquisition and Resettlement of Road Project B Table 33 approximate Land Values in Road Project Areas Table 34 Value of structures according to type of structure Table 35 Implementation Schedule Major Events Table 36 Matrix of Roles and Responsibilities of Government Agencies and Other Organizations involved in Resettlement Planning and Implementation LIST OF FIGURES Figure 1 Location MDP of B153 (Hikkaduwa Baddegama - Nihena)... 3 Figure 2 Size of DP Households ANNEXES Annex 1: National Involuntary Resettlement Policy Annex 2: The personnel met during the field visit Annex 3: TOR for the External Monitoring and Reporting Consultant / Agency Annex 4: Census Survey Questionnaire Annex 5: Sinhala Version of Entitlement Metrix... 88

8 v EXECUTIVE SUMMARY 1. Introduction 1. Before the preparation of the resettlement plan (RP), the PMU employed an external agency under the supervision of the resettlement staff to conduct a census and a socioeconomic survey to collect data based on the preliminary design and the identified acquisition boundaries in relation to the centre line. The information contained in the RP is tentative until completion of detail engineering designs and the preliminary plan. After which RDA will finalize the RP by completing the census and the inventories of loss of assets. This will be sent to ADB for review and disclosure to ADB website. 2. The Resettlement Plan (RP) is prepared to address the land acquisition and resettlement effects generated as a result of upgrading the road project B153 Hikkaduwa Baddegama Nihena which is km in length commencing from 0.0km at the origin of the B153 at Galle Road and terminating at 14.34km linking the interchange of STDP at Nayapamula. This highway is one of the six road projects undertaken by the National Highway Sector Project (NHSP) Southern Expressway links of the RDA to be upgrade under ADB assistance. This road will be developed into a two lane highway which will facilitate to arrest the vastly increasing traffic volume with the opening up of the southern expressway. 2. Methodology 3. A comprehensive study with two surveys Land Acquisition and Resettlement Survey and socioeconomic survey (SES) has been carried out in 2007 by the NHSP consultants and a resettlement plan has been prepared. Relevant information has been collected through the land acquisition and resettlement survey covering all displaced persons (DPs) and from the SES representing 20% of the DPs. In this updating exercise all the data and information were considered which are of prime importance and the consultants in making the RP to suit the current requirements in accordance with the existing rules and guidelines had to match with the required length of the road. As the time period allocated for the updating exercise is extremely limited it was not possible to do any surveys to understand the current socioeconomic status of the DPs and road users, but only a quick observation was made by visiting the road project and making several discussions with pressure group of the area, DPs and road users. In this exercise most of the data and information are included into the RP in the original formats wherever possible. However the RP will be finalized after completing the census and the inventories of losses of assets after completion of the detailed engineering designs and submitted to ADB for review and disclosure to ADB website. 3. Scope of Land Acquisition and Resettlement 4. The road project calls for the acquisition of 3,949 perches of private lands, of which more than 71% of these (2,822 perches) are residential and commercial land

9 belonging to 1,039 displaced households (DHs) and remaining 28% (1124 perches) are agricultural land belonging to 186 DHs. The number of persons to be displaced is 3,993. The DHs comprise of 750 titleholders; 69 tenants; 180 lessees; and the remaining 230 DHs classified as non-titleholders and others. Of the total, 277 DHHs (130 titleholders, 24 tenants, 36 lessees, 35 non-titleholders, and 52 others) are expected to be fully affected (physically affected from housing). 4. Socioeconomic Information 5. The total number of DPs in this road section is estimated at 5,180 (including the employees in trade and business), which includes 1,229 DHs. Out of the DPs, 2,180 are males while 3,000 are females. In terms of age distribution, 10.04% of total DPs are below the age of 5 years, 14.65% are between ages 6 and 14 years, 32.38% are between ages 15 and 30 years and 31.82% DPs are between 31 and 60 of age, whereas 11% are above 60 years. Male to female ratio of total DPs is 1 to In terms of educational attainment, only 2 percent are illiterate, 5% have gone up to primary level, 20% have attended G.C.E (O/L). In total 25% (80% males and 20% females) have completed education up to the G.C.E (O/L). Another 29% of the DPs have completed education up to G.C.E. A/L while graduates and postgraduates accounts for 7%. Among the total displaced, 52 individuals are seriously disabled while 85 are partially disabled. 7. Since this road section traverses mainly through urban and highly residential non-agriculture based areas, only 2% of DPs are involved in agriculture and related activities. 29% (319 individuals) of DPs are involved in trade and business while over 52 percent are in government or private sector. 8. There are no indigenous people located in the vicinity of this road. 5. Information Dissemination, Consultation Participation and Disclosure 9. In RP preparation, the LARS, SES, key informant interviews and informal meetings with DPs and various stakeholders have been carried out. This process commenced with initial discussions with concerned RDA Staff and Consultants. This was followed by meetings with three Divisional Secretaries (DSs) of the area, and issuing of background and relevant details to the DSs and to identified 15 displaced Grama Niladhari divisions. 10. Apart from the regular meetings with DPs, DS, Grama Niladhari, and other relevant agencies, the disclosure process for the road project was undertaken through distribution of a Public Information Leaflet (PIL) that was prepared, translated into Sinhala and Tamil, and distributed to ensure that all DPs and various stakeholders of the affected areas are fully aware and appraise the details of the resettlement plan, compensation and rehabilitation measures applicable to them.

10 vii 11. The PIL includes information about the road project in terms of its scope, potential land acquisition and resettlement requirements, types of potential impacts, basic compensation policy and entitlements, outline of livelihood restoration measures, consultation and participation of DPs and community, implementation schedule, and contact persons for additional information. Altogether four consultation meetings with the participation of the various stake holders were held between June 2007 to May 2010 and one to one consultation between resettlement staff and the displaced persons is being continued. 6. Grievance Redress Mechanism 12. A grievance redress mechanism will be in place to allow people a forum accessible to them to submit their grievances. The GRC will comprise of public officials and members of the civil society. Wide publicity will be given regarding the powers and composition of the GRC. DPs could make representations to the GRC to seek redress to their resettlement issues. 7. Policy and Legal Framework 13. Land acquisition is governed by a statute enacted by parliament in 1950 designated as Land Acquisition Act, with certain amendments made periodically to meet the emerging situations of the state and the public. Latest amendment being the version of 1986 and the Regulations 2008, gazetted on the 20 th January Resettlement policy of the road project is based on the provisions contained in the (i) National Environment Act (NEA); (ii) National Involuntary Resettlement Policy (NIRP), and (iii) ADB s Safeguard Policy Statement, 2009 (SPS). 8. Entitlement 14. In order to comply with the NIRP and Safeguard Policy Statement, 2009 on resettlement, in addition to the statutory compensation payable under the LAA, a special compensation package has been approved by the Cabinet of Ministers to address all resettlement issues faced by the displaced persons including payment of replacement cost for the loss of properties, income and livelihood restoration. The Entitlement Matrix is a part of the resettlement implementation plan and has been presented under entitlements, funds will be provided by the Government of Sri Lanka (GOSL) in a timely manner to complete the payment of compensation as planned. 9. Relocation of Housing and Settlement 15. There are two options for the DPs to relocate after handing over their properties to the project. Either the DP could obtain the replacement cost of the properties and other entitlements and relocate in a location selected by himself or resettle in a site developed by the PMU subject to the availability of such lands in the area in

11 consultation with displaced persons. Project will assist wherever possible to find alternate locations to re-establish businesses of the affected. 10. Income Restoration and Rehabilitation 16. After a need assessment survey IRP will be launched in order to assist the DPs to restore and rehabilitate their businesses.those with minor impacts will be given a grant of Rs.15,000 or loss of net income for six months whichever is higher. Vulnerable DPs are entitled to an additional compensation of Rs.15,000 and those who lose wage income is entitled to a grant, equivalent of three months basic salary. 11. Resettlement Budget 17. Totality of the resettlement budget is financed by funds provided by the GOSL. The amount of compensation including administrative costs and provision for contingencies is approximately Rs. 575 million equivalents to a US$ 5 million. Statutory compensation, replacement cost and cost of IRP is included in the budget. 12. Implementation Schedule 18. Implementation is based on the time frame indicated in the implementation schedule. It is of 18 months which includes construction duration. Implementation is undertaken by the relevant staff of the project management unit (PMU) assisted by Environmental and Social Division (ESD), DSs, and construction supervision consultant (CSC). 13. Institutional Framework for Resettlement 19. Road Development Authority (RDA)/PMU is mainly responsible for the implementation of the resettlement programme with the assistance of the displaced persons, ESD, DSs, CSC, community-based organizations, Department of Survey and Valuation. The assistance of the relevant state agencies will be sought during the implementation of the income restoration programme. 14. Monitoring and Evaluation 20. Internal monitoring will be conducted by the PMU, ESD, and CSC and the external monitoring by the executing agency (EA), where necessary EA will hire a nongovernment organization or group of experts for external monitoring. The EA will prepare monitoring reports. The external experts hired by the EA will advise on

12 ix safeguard compliance issues and if any significant issues are identified corrective action plan will be prepared and action will be taken to address such issues. 21. The EA will submit the first Monitoring and Evaluation Report by 31 December 2011 and thereafter semiannually until end of December 2012.

13 CHAPTER 1 - PROJECT DESCRIPTION 1. Description of the Road Project 1. Road B153 (Hikkaduwa Baddegama Nihena) starts from Colombo Galle Hambantota Wellawaya Highway (A002) at the town centre and the clock tower junction of Hikkaduwa and links the Southern Expressway and having a distance of km. This is one of the six road projects to be upgraded under the Additional Financing for National Highway Sector Project (NHSP). 2. This Resettlement Plan for B153 road project has been prepared in compliance to the National Involuntary Resettlement Policy (NIRP) adopted by the GOSL and the ADB s Safeguard Policy Statement, 2009 (SPS) and as well as government acts, regulations and policies. 3. Total number of displaced persons (DPs) under this road project is estimated to be about 5180 including 1,229 displaced household heads. Out of them 277 are considered as fully affected, according to the studies carried out in As a secondary highway B153 mainly traverses through three Divisional Secretary (DS) Divisions of Hikkaduwa, Gonapinuwela and Baddegama within Galle District in the Southern Province. This proposed highway will affect people in 21 Grama Niladari Divisions and 53 villages of the above DS Divisions. The road is an important connection from A002 (Colombo Galle Hambantota Wellawaya) to the ongoing Southern Highway. Hence, improving this road in to a highway will facilitate economic development not only to the around immediate neighbourhoods (Grama Niladhari [GN] and DS Divisions) but also to the entirely of Galle District. 2. Project Profile 4. The road project road starts from Colombo Galle Hambantota Wellawaya highway (A002) at the town centre and the clock tower junction of Hikkaduwa and links the Southern Expressway having a distance of km (the location map is given as Figure 1).The present traffic volume using the road tapers a maximum of 5,000 vehicles/day at Hikkaduwa, Southern Expressway is estimated to add another 2,500 vehicles/ day on the B153. The existing ROW is generally between 8 9 m through the rural sections and 9 10 m in the urban centres. The need for a four lane is not indicated within the next 20 years, but expected to upgrade for a two lane highway to arrest the increasing traffic volume. Accordingly, the widening requirement for the rural cross section is therefore 4 5 m from both sides of the centre line, and required land acquisition will be a strip of m wide from each side of the road. Approximate land area has been estimated to 15.6 hectares.

14 2 3. Objectives of the Resettlement Plan (RP) 5. The main objective of the RP is to assist the DPs to overcome the adverse effects, mainly by the land acquisition associated with the planned highway road project. This RP aims at improving DP s own capacity to rehabilitate them by facilitating their immediate requirements and paying their due entitlements appropriately as the compensation for their socioeconomic losses in a timely manner. One of the important objectives in developing this road is to mitigate the impact of increasing traffic volume as a result of opening of the Southern Expressway.

15 Figure 1 Location MDP of B153 (Hikkaduwa Baddegama - Nihena) Source: National Highways Sector Project January

16 4 4. Socioeconomic Benefits of the Project 6. Volume of traffic in Sri Lanka is estimated to grow at an incremental rate of 4.6% per year. The existing road network has not been designed and developed to cater to the present volume of traffic, creating huge congestions on roads daily, which lead to following socioeconomic losses to the country. Increase cost of travel Loss of foreign exchange due to excessive consumption of imported fuel. Increase in travel time Loss of valuable man hours and consequent loss of productivity Excessive waste of component of vehicles Increase in accidents Injuries to passengers, pedestrians Increase mortalities due to accidents 7. The concept behind the NHSP is to mitigate the above adverse effects on one hand and increase mobility of the population, goods and services to accelerate the economic growth on the other by (i) upgrading thirteen important roads initially including road project A024, (ii) develop and increase capacities of road sector institutions, and (iii) introduce and developed pilot performance-based maintenance contracts. 5. Methodology 8. This road project also has been studied by a team of consultants in June 2007 and a resettlement plan (RP) has been prepared after comprehensive feasibility studies. This updating exercise has a very limited timeframe and as there is no possibility of doing fresh surveys all existing data was considered in this and unwanted data and information were excluded in the updating. However further updating to the RP will be done after completion of the census survey after the detailed engineering designs are completed and will be submitted to ADB for approval and disclosure to ADB website. 9. In the previous study relevant data and information have been collected through a land acquisition and resettlement survey (LARS) which refers to as census survey, covering all known DPs (within and outside displaced households) and socioeconomic survey (SES) representing 20% of the DPs. LARS has been able to collect all necessary information on family status, ownership of land and properties, business details, income and expenditure, details of social links of community, social infrastructure facilities and resettlement options of displaced household heads (DHHs).

17 5 The SES on the other hand has provided information on access to government support, household income and expenditure, health and educational status, indebtedness, among others. Stakeholder discussions and dialogue with key informants and field observations also have been used in obtaining information to the previous study. All these information and data have been included in this updating in the original formats. 10. The consultants in updating this RP studied the SPS and NIRP in addressing the resettlement issues of the displaced persons in order to restore their dwellings, income and livelihoods at least to the pre project standards. PMU will take all necessary steps in improving the socioeconomic standards of the displaced persons as a result of this upgrading of the road project. 11. In addition at selected points several DPs and knowledgeable persons were interviewed as informal discussions to understand the views of the public. This exercise will only indicate the types and approximate numbers of the properties and thinking of the persons on the proposed development which will be affected as a result of upgrading this road project. Also in order to obtain the land values the knowledgeable persons such as Notary Public, lawyers and long standing residents were interviewed wherever possible.

18 6 CHAPTER 2 - LEGISLATIVE AND POLICY FRAMEWORK 12. In this chapter, legislative and regulatory framework for land acquisition and resettlement and policies pertaining to resettlement are discussed. 1. Legislative Framework 1.1. The Land Acquisition Act of 1950 (LAA) and Subsequent Amendments and Regulations 13. The Land Acquisition Act (LAA) of 1950 is the most important legal provision which spells out the Land acquisition process in Sri Lanka. It has several amendments and the latest being the version of 1986 and the Regulations, 2008 gazetted as No. 1585/ 7 on Tuesday, 20 of January The procedures for land acquisition and payments of compensation for acquired lands by the government for public purposes are laid down in the LAA. It provided the payment of compensation at market rates for lands, structures and crops. In chapter 460 of the LAA the procedure is explained in the following manner. a) Preparation of acquisition proposal by the requesting agency and submission to the Ministry of Land and Land Development (MLD) through the Secretary of Ministry of Ports and Highways. b) Approval of the proposal by MLD, posting of notices by the relevant divisional secretaries and preparation of advanced tracing by the survey superintendent on requisition issued by the relevant divisional secretaries (section 2, 248 and 249). c) If sec 38 (a) is not invoked divisional secretary to call objections under sec 4 of the LAA. Even after inquiring of the objection called under section 4 if the relevant land is required to be acquired the requirement will be conveyed by Ministry of Ports and Highways to the Ministry of Land and Land Development. d) Minister of Land then issue and order under Sec 5 confirming the acquisition of the relevant land which will be followed up through a gazette notification in all three languages in the same order Ministry of Land and Land Development will direct the divisional secretary to take action to prepare the PP. e) Based on the Ministers order under Sec 5, DS issue a requisition to the Superintendent of Surveys of the district to prepare and submit the plan. f) On receipt of PP the DS will published in Government gazette notification in all three national languages (Sinhala, Tamil and English) that he/she intend to conduct inquiries under section 9 of LAA and request people to submit there clams for ownership of land before the date mention by him in the gazette notification. In addition to the gazette notification a paper notice will be published by the DS in all three languages for information of the stake holders.

19 7 g) Then inquiries will be conducted to determine the ownership and DS will issue a order declaring ownership under Sec 10 (i) of LAA. h) Acquiring officer either makes the decision on the claims or refers the claims to the district courts or primary courts if he is unable to determine the ownership. i) Acquiring officer (Divisional Secretary of the area) holds an inquiry into the market value of the land, the claims for compensation and the legality of claimants (advised by valuation officers) and award of compensation under section 17 of LAA. j) Then the possession will be taken over under Section 38 or in an urgent situation in made section 38 (a) even though the LAA permit to takeover possession before paying compensation any land acquired by the state at present will only be taken over by paying compensation in full. This is to comply with SPS, 2009 of ADB and NIRP. After taking over the possession DS will take action to vest the properties acquired under the name of relevant beneficiaries under section 44 (i) of LAA and register the title with the registrar of the land of relevant district. k) Following the decision (either by the acquiring officer or the courts) the acquiring officer makes an award after determining the persons who are entitled to compensation, the total amount of compensation deemed to be allowed for the acquisition and the apportionment of the compensation among the persons with interest and l) In the event of dispute over the determination it may be appealed to either the compensation review Board or Court of appeal within 21 days of the receipt of the notification of the award. If there are no appeals, the compensation will be paid LARC Process 15. Prior to the commencement of the land acquisition for the STDP, DPs were paid only the depreciated values under the LAA for structures and a price determined on the basis of willing buyer and a willing seller for the lands and the valuation is done by the Department of valuation. Any aggrieved party on the valuation determined by the Valuation Department. Is expected to appeal to the Land Acquisition Review Board within 21 days of receipt of the Sec 17 order from the DS. By experience it was found the process adopted by the Land Acquisition Review Board is time consuming and variation of the Valuation Department determination was very marginal. As large extent of land and over 1500 buildings had to be completely affected Government decided to introduce the new scheme to compensate the displaced people in 2001, outside the Act by creating a body called LARC (Land Acquisition and Resettlement Committee) composed of the following members to determine the replacement cost (not the depreciated value) of the buildings and the market value of the land of the displaced people.

20 8 Composition of the committee Relevant DS (Chairman) Representative of the Valuation Department Representative of the Survey Department Representative of the RDA Displaced person 16. The notable feature of this committee is that the displaced person himself is a vote carrying member of the board. Super LARC (Ministerial Compensation Appeal Board) 17. Displaced person who is not satisfied with the quantum of compensation decided by the LARC will have option of appealing to the Super LARC committee which is established by the decision of the cabinet of ministers. Composition of the Super LARC Secretary Ministry of Ports and Highways or a person delegated by him Chief Valuer or his representative Secretary Land or his representative Survey General or his representative Director General of RDA or his representative 18. The displaced person will also be called for the inquiry and the decision of the super LARC is final Land Development Ordinance (1935) By virtue of this ordinance and its subsequent amendments, households that are occupying crown land may request permission from the Divisional Secretary to be regularized on the Land in question. The Acquiring officer (Divisional Secretary) makes an investigation and may recommend giving a one year permit initially, if the land is not reserved land or not required for any other government purpose. Subsequently, the person may be given a long lease which constitutes a legal title without right to disposal. The term for such titles is Swarna Boomi or Jaya Boomi. 19. There are two categories of encroachments into crown land. (1) Middle income category, the households that have other agricultural land and (2) Lower income category, the landless households will be given special consideration for allocation of crown land that is not reserved land.

21 Road Development Authority Act No. 73 of The Road Development Authority Act (1981) provides for the establishment of the RDA and specifies the powers, functions, duties and responsibilities of the RDA. Part II of the Act deals with declaring areas for 'road development', which under the meaning of the Act includes the construction of new roads or the maintenance or improvement of existing roads (Improvements are deemed to include any widening, levelling, provision of footpaths, treatment for mitigation of dust or any other works beyond ordinary repairs). 21. The functions and duties of the RDA include, inter alia, carrying out integrated road planning and development, submitting such plans for government approval, and following approval, implementing the road development plans, works and activities. 22. Under Section 8 of the Act, the Minister, after taking into consideration the requirements of local and national planning and what is expedient for the regulation and control of road development, may declare a 'road development area' following an order or notice (which sets out the requirement and physical boundaries) published in the gazette. 23. Section 22 deals with land acquisition for road development as a "public purpose" and provides for the acquisition by, and transfer to, the RDA of immovable or moveable property within any declared road development area, for which the RDA will pay any sum payable under the LAA [Section 22 (2)]. Therefore, after the Section 2 notice have been published, if land or other property is to be acquired, the procedures to do so are as set out in the LAA State Land Ordinance No 8 of This ordinance is known as the State Land Ordinance No 8 of Section b of the ordinance explains the land grants which can be made and the rents to be obtained for the grants. It is mentioned in section 22 the period be up to 50 years only and the prescribed form given in the ordinance be filled and signed by the officer authenticated to sign for the grant. A person seeking a crown land has to appeal to the Government Agent of the area. Such person has to pay the rent decided by the Land Commissioner or the Government Agent of the area. Provisions also have provided to officers such as General Manager Railways and chairman of the Colombo port to rent out the lands under their purview, under special circumstances Prescriptive Ordinance No 22 (1871) 25. Under sections 3 and 13 of this ordinance household who have encroached into private land and have been occupying the land for at least 10 years may apply through the courts for prescriptive rights to the land National Environmental Act No 47 of 1980 (NEA) 26. These are some provisions in the NEA Act No.47 of 1980, with the amended Act No 56 of 1988 which refers to Involuntary Resettlement. The Hon. Minister in charge of the subject of environment has prescribed projects and undertakings which approval shall be necessary under the provisions of the NEA.

22 The Minister by gazette notification No 858/14 of 23 rd February 1995 has determined the types of projects and under takings which need the approval under the terms of the NEA. The schedule includes item 12 which refers to involuntary resettlement exceeding 100 families, other than resettlement resulting from emergency situations. 2. Policy Framework 28. Land Acquisition Act provides compensation only for land, structures, and crops and provisions are not available to address key resettlement issues to mitigate or avoid impacts on people resulting from land acquisition. In addition non titled people and other dependents on land cannot be assisted under the LAA. 29. To address the current gaps in the LAA in addressing the key resettlement issues such as exploring alternative project options that avoid or minimize impacts on people the government of Sri Lanka (through the cabinet of Ministers) adopted the National Policy on Involuntary Resettlement (NIRP) on the 24 th May The NIRP also highlighted the need for consultation of DPs and their participation in the resettlement process actively. The CEA was tasked to review and approve Resettlement Plans (RPs) prepared by project executing agencies. The plans also required to be publicly available. 30. In addition to NIRP, ADBs Safeguard Policy Statement, 2009 have similar requirements and guidelines NIRP 2.2. Background 31. Various public and private sector development projects are engaged in acquisition of lands for their development and the families replaced are affected with unfamiliar locations and various other hardships. These developments take place without satisfactory consideration to resettlement. Accordingly, people have shown resistance to this process and where displacement is involved, the projects are getting delayed. 32. Among the significant consequences of poor resettlement process has resulted impoverishment of displaced families due to landlessness, homelessness, joblessness, relatively higher mortality and morbidity, food insecurity, lack of access to common property and public services and disruption to existing Social Organizations. Original LAA and subsequent amendments and Regulations to it do not require the project executing agencies to address key resettlement issues such as (i) exploring alternative project options which avoid or minimize impacts on people; (ii) compensate those who do not have title to land; (iii) consulting displaced persons and host community on resettlement options, (iv) providing for successful social and economic integration of the displaced persons and their hosts; and; and (v) full social and economic rehabilitation of the displaced persons.

23 In order to address the above mentioned issues the steering committee appointed by the government reviewed the existing laws and policies and approved the National Involuntary Resettlement Policy on 5 th March 2001 and the government of Sri Lanka adopted it (through its cabinet of Ministers) as a National Policy on 24 th May Objectives of the NIRP a. Avoid, minimize and mitigate negative impacts of involuntary resettlement by facilitating the reestablishment of the DPs on a productive and selfsustaining basis. The policy should also facilitate the development of the DPs and the project; b. Ensure that DPs are fully and promptly compensated and satisfactorily resettled. The livelihoods of all displaced persons should be re-established and their standard of living improved; c. Ensure that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purposes by the state; d. Assist DPs in dealing with the psychological, cultural, social and other stresses caused by land acquisition; e. Make all DPs aware of process available for redress of grievances, which are easily accessible and immediately responsive; and f. Have in place a consultative, transparent and accountable involuntary resettlement process with a time frame agreed to by the project executing agency and DPs. 34. Adhering to the above objectives the scope of the NIRP includes all development-induced land acquisition or recovery of possession by the state. NIRP requires that a comprehensive RP be prepared where 20 or more families are displaced. In case where less than 20 families are displaced, the NIRP still requires a RP with lesser level of detail. NIRP applies to all projects irrespective of source of funding. 35. A detailed NIRP which include rationale, objectives, scope, policy principles, institutional responsibilities, monitoring and evaluation, etc. are given in the Annex SPS 36. The ADB s SPS recognizes and addresses the resettlement and rehabilitation impacts of all the Displaced persons, irrespective of their titles, and requires the preparation of RP in every instance where involuntary resettlement occurs. The ADB policy requirements are: a. Avoid or minimize impacts where possible; b. Consultation with the displaced people in project planning and implementation; c. payments of compensation for acquired assets at the replacement cost;

24 12 d. Ensure that no one is worse off as a result of resettlement and would maintain at least their original standard of living. e. Resettlement assistance to Displaced persons, including non-titled persons; and f. Special attention to vulnerable people/groups. 37. The main policy principles of the SPS are: Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. Carry out meaningful consultations with Displaced persons, host communities, and concerned non-government organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and reporting of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the displaced persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

25 13 Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to displaced persons and other stakeholders. Disclose the final resettlement plan and its updates to displaced persons and other stakeholders. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. Existing Gaps in LAA and NIRP vis-à-vis SPS 38. There are differences between LAA and the NIRP and SPS in relation to approach to land acquisition and payment of compensation. Although the SPS and NIRP are more or less congruent, there are differences when compared with the LAA and SPS. Even though the LAA is not subordinate to the NIRP, for the payment of compensation the NIRP and SPS are being followed. The gaps in the LAA vis-à-vis the NIRP and the SPS are analysed in the table below. Table 1 Legislative GAP Analysis Aspect GOSL Laws/Policies Donor Policies (SPS of ADB) Measures to Bridge the GAP Requirement of a RP Does not require under the LAA as amended, NIRP requires that a comprehensive RP for projects exceeding RP is required for all category A and B projects. PMU follow the NIRP which spell out the type of RP to be prepared and implemented.

26 14 Aspect GOSL Laws/Policies Donor Policies (SPS of ADB) displacement of more than 20 families and a RP of lesser detail if the number of families displaced is less than 20. Measures to Bridge the GAP A project affecting 100 families is considered as a prescribed project under the NEA; such project requires the approval of the CEA before implementation but does not address the resettlement issues. Compensation for non-title holders Provided in the NIRP, Not in the Act (LAA) The borrower will compensate them for the loss of assets other than land such as dwellings and also for any other improvements to the land at the full replacement cost. The entitlements will be provided to those who have occupied the land or structures in the project area prior to the cut-off date for eligibility or resettlement assistance. Provision is available in the entitlement package approved by the Cabinet of Ministers to make fair and just treatment. Entitlement matrix is a part of RP Consultation with stake holders Does not require under LAA as amended. It is a requirement under NIRP, Consultation is required with displaced persons (Same as NIRP) PMU follow the NIRP and Safeguard Policy Statement, 2009 as indicated in the RP Public disclosure Provided in the NIRP, Not required under the LAA as amended. If the project is subject to an IEE or EIA, the report should be available for the information of the public or public comments Public disclosure is required RP will be disclosed to the public and will be available in the website of ESD and ADB. The entitlement matrix will be translated into local language and distributed to

27 15 Aspect GOSL Laws/Policies Donor Policies (SPS of ADB) Measures to Bridge the GAP DPs. Income Restoration Act does not provide, NIRP Provides. Income should be restored and livelihood be re-established and standard of living improved. Income should be restored PMU follow NIRP and Safeguard Policy Statement, 2009, details are given in the RP Taking over possession before Payment of compensation Act provide, NIRP does not allow Does not allow PMU will follow the NIRP and Safeguard Policy Statement, 2009 as indicated in the RP Grievance Redress Mechanism No provision in the LAA as amended. It is a requirement under the NIRP Requirement under the Safeguard Policy Statement, 2009 Provided in the RP Acquisition within 48 hrs on an emergency basis Under 38(a) of LAA, after 48 hrs, even without paying compensation. But according to NIRP, not without paying replacement cost and reasonable notice NIRP does not supersede the LAA since it is a statutory act. But in order to provide relief to the displaced people, NIRP is being implemented on a directive by the Cabinet of Ministers of the GOSL. The borrower /client will ensure that no physical or economic displacement will occur until 1) compensation at full replacement cost has been paid to each displaced persons 2) other entitlements listed in the RP have been provided to the DPs 3) A comprehensive income and livelihood rehabilitation program supported by adequate budget is in place for the DPs. PMU follow the NIRP and SPS Replacement Cost Provided in the NIRP, replacement cost according to regulation gazetted on 20 th January At full Replacement Cost Project will follow the NIRP and Cabinet approved entitlement matrix. Assistance for vulnerable people LAA is silent on this aspect. NIRP require special treatment for the vulnerable groups. Safeguard Policy Statement, 2009 requires a special assistance for the Provision is available in the RP.

28 16 Aspect GOSL Laws/Policies Donor Policies (SPS of ADB) vulnerable people. Measures to Bridge the GAP Compensation by instalments Under the LAA statutory compensation to be paid in As per SPS full compensation at the RP provides statutory compensation to be instalments, but NIRP does no replacement cost has to paid in one lump sum agree be paid to the displaced person before any physical or economic displacement will occur Reference: LAA, NIRP, NEA, Handbook on Resettlement - ADB 39. The gap that exists between statutory provisions and national policies on involuntary resettlement might be rectified when amendments are proposed to the Land Acquisition Act, in order to give legislative muscle to the policy on involuntary resettlement. The SPS and NIRP are almost similar in context.

29 17 CHAPTER 3 SCOPE FOR LAND ACQUISITION AND RESETTLEMENT 1. Potential Impacts of the Project 40. The land use pattern along this road project is predominantly residential built up area having urban pockets in between starting from Hikkaduwa. A ribbon type development can be seen throughout the road. Homestead section, paddy tracks with occasional scrub holdings can be seen which indicates a rural atmosphere having urban pockets. Therefore, road widening required the acquisition of residential areas, homesteads and paddy tracks and clearing of encroached structures in the road reservation. Table 2 presents the summary of land acquisition which generates resettlement impacts as highlighted. Table 2 Summary of Land Acquisition and Resettlement Impacts Impacts Number or Area affected (Hectares) Unit Number of DPs Number of Male Female displaced Households Permanent loss of private, residential/ 10% or less of land affected Hectares % of land affected Hectares % -100% of land affected Hectares % of land affected Hectares Temporary Loss of private residential / Commercial Land 10% or less of land affected Hectares % of land affected Hectares % - 100% of land affected 0 Hectares % of land affected 0 Hectares Permanent loss of agricultural land 10% or less of land affected Hectares % of land affected Hectares % - 100% of land affected Hectares % of land affected 16.0 Hectares Loss of Structures Shops Sq. ft

30 18 Houses Sq. ft Combined shops & houses Sq. ft Parapet walls/ fences/ gates etc. Small Businesses (cottages/temporary huts etc) Sq. ft 4274 Sq. ft Secondary structures(class 3) Sq. ft Unclassified other structures (class 4) Corporate-owned factories/com. building/stores Sq. ft 33 Number Relocation Shops 121 Number Houses 66 Number Shop / houses 17 Number Permanent loss of livelihood Owners of affected shops 148 Persons Workers from affected shops Temporary loss of livelihood Owners of affected Shops / enterprise Persons Workers of affected shops / enterprise Loss of crops / trees 5645 Trees / crop plants Loss of rental accommodation 81 Persons Source: Land Acquisition and Resettlement Survey (LARS) August 2007 One Hectare = perches; One Perch = 25.3 sq. Meters Note: In the column unit, indicate if the number in the preceding column refers to number of units or area of land. Some DPs may experience more than one type of impact. Hence, multiple recording is possible.

31 19 2. Scope of Land Acquisition 41. The road project required a total of 3949 perches of private land which include residential land, commercial / residential and agricultural for acquisition for the widening of this road as shown in the above Table 2. A large percentage of 71% or 2,822 perches are categorised as permanent loss of residential and commercial land belonging to 1,039 displaced household (DH), while the temporary loss of same category lands are quite negligible (only 0.08% or 3.2 perches). The remaining 28% (1,124 perches) are agricultural lands owned by 186 DH. 3. Type of Impacts Resulting Land Acquisition by DS Divisions 42. Table 3 highlights the total number of DP households, total DP population and the degree of severity by DS Divisions. Table 3 Number of Displaced Persons and DP Households by DS Division and Type of Impact DS Division Type of Impact No. of DP Households DP Population Male Female Total Baddegama Fully affected Partially affected Gonapinuwala Fully affected Partially affected Hikkaduwa Fully affected Partially affected Total Fully affected Source: LAR Census, August 2007 Partially affected 952 1,592 2,401 3, Accordingly, fully displaced households in Baddegama and Gonapinuwala DS Divisions are more than the Hikkaduwa DS Division, which forms 103 at Baddegama and 116 at Gonapinuwala. Hikkaduwa DS Division has 58 fully displaced DPs. In all the three DS Divisions fully displaced DHs amount to 277 and fully displaced population amounts to 1,187 people. Partially displaced households in the three DS Divisions are 952 and partially displaced DP population stands at 3,993 which also indicate a higher numbers in Baddegama and Gonapinuwala than in Hikkaduwa.

32 20 Table 4 Number of fully Displaced DP Households by type of Impact Type of Impact Number Percent 1. Will be physically displaced from housing Will loss 10% or more of their productive (income-generating) assets 3. Will be physically displaced from housing & lose 10% or more assets Total Source: LAR Census, August The above table indicates that out of 277 fully displaced households (DHs) 29% or 80 DHs will be physically displaced from their present housing which 163 DHs or 59% of the fully displaced households will lose 10% or more of their productive income generating assets and 12% or 34 DHs will be physically displaced and lose 10% or more of their assets as a result of this road project as indicated in Table With regard to the land ownership, the fully displaced households comprise of 115 titleholders; 24 tenants; 36 lessees; and the remaining 52 DHs of this category are classified as non-titleholders. The partially affected category of DH is as large as 605, of which 453 are titleholders, 36 non-titleholders, 53 tenant/sharecroppers, 29 lessee/renters and balance 87 belong to other categories (shared ownership, mortgaged, squatter etc.). The fully displaced 209 households are expected to be physically displaced from their present housing. It is noteworthy that 66 DHs have not provided information on land ownership. Table 5 provides the details of land types by ownership categories.

33 21 Table 5 Number of DP Households losing ownership / Access to land by land Tenure, Land use and Impact Land Tenure Type of Affected Land and Impact Residential Land Trade and Business Land Agricultural Land Public / State Land Others Full Partial Full Partial Full Partial Full Partial Full Partial Sole deed / Titleholder Claims ownership but without title Shares ownership with another person Owner but has mortgaged the property Owner but has leased the property to another person Lessee/ Renter Tenant/ Sharecropper Squatter Total Source: LAR Census, August 2007 Note: 66 DHs have not provided information on land tenure 46. A total of 1547 structures belonging to 1,454 households that are likely to be affected by the road project, as shown in Table 6, and out of the total, 506 structures will be fully affected and needed to be relocated elsewhere, while another 769 structures are also fully affected but they can be rebuilt within the same land plot. Over and above these two categories, there will be 272 partially affected structures. 47. Most of the fully affected structures are located mainly in the urbanised areas closer to Hikkaduwa and Badddegama townships, while the partially affected ones are suburban and rural areas located in between these towns.

34 22 Table 6 Number of Affected Private Structures by Type of Structures and Degree of Impact Type of Structure Number of Affected Structures Number of DHs Partially Affected Fully Affected but can be rebuilt within the same plot Fully affected and need to be relocated elsewhere House only Shops/commercial Combined shop and house Parapet wall/fence/gate Sheds/temporary stalls Commercial buildings/warehouse/fac tory Other Structures Secondary Total ,454 Source: LAR Census, August 2007 Note: DH may have more than 1 structure that could be affected 48. Because of the urban nature of the road stretch, there are more shops and commercial buildings than residential houses. A large number of affected structures fall to the category of parapet walls/fence/gate. Alternative sites for the relocation of the fully affected structures will need to be found within the same DS/GN areas. The total land area of the affected structures is 201,360 sq. ft. (740 perches). The total number of affected primary structures is 922, owned by 669 DHs, and the type of these structures by class (building materials) is shown in Table 7. Table 7 Materials of affected primary private structures Building Materials Class 1-brick or concrete walls, tiled roof, tiled or cement rendered floor and serviced (water, electricity) Class 2- brick or concrete walls, metal sheet roof concrete floor, and serviced(water and electricity) Class 3-brick or sheet walls, metal sheet roof earth floor, and unlikely to be service Class 4- earth, metal sheet or plank walls, earth, hay, thatch or plank roof, earth floor and not serviced Number of affected Primary Structures Number of DP Households Other Secondary Structures 7 4 Total Source: Land Acquisition and Resettlement Survey (LARS), August 2007

35 There is a great diversity in the livelihoods of the DHs that have been surveyed as affected out of the total 1,229. Since the proposed highway road-project is a link from one urban centre to another and traversing through urbanised area, the majority of the affected livelihoods are business establishments of various scale and type. 50. There are a total of 371 households of which 271 are some kind of trading or business places. Permanently affected places are amount to 125, while temporary affected livelihoods are as high as 236. The agriculture related livelihoods (crops, livestock & fishing) that are affected are very negligible (only 10 persons). Table 8 Livelihoods of DPs which are displaced by the Project (Owner only) Type of Livelihood Temporarily Affected Permanently Affected Total Male Female Male Female Male Female Farming Horticulture Livestock raising Fishing/fish processing Weaving Animal Husbandry Retail shop (essential items) Wholesale shop (essential items) Small shop (services) Large shop (services) Variety store Garage/tyre centre shop/service Vehicle yard (selling) Hardware shop Hotel/restaurant/bar Tea shop Vegetable shop Fruit shop Fish stall Small shop (services) Small/Medium scale factory (less than 100 workers) Large scale factory (100 or more workers) Others (specify) Total Source: LAR Census, August 2007 Note: Total temporarily affected 246; permanently affected 125

36 Most affected categories of both temporary and permanent level are retail shops, small shops of service nature and hotel/tea shop, all of which are small in scale and land area covered. Total permanently affected businesses are 140 while temporary affected businesses are 222. Of total number of these businesses, 85 percent are owned by male. Table 8 presents the distribution of affected livelihoods. 52. Table 9 indicates the monthly income derived by DHs in the affected business and/or livelihoods. Accordingly, around 90% of the DHs are small to medium level enterprise holders with a monthly income of below Rs. 100, Total permanently affected businesses are 140 while temporary affected businesses are 222. Of total of these businesses, 85% are owned by male. Table 9 Monthly Income Derived by DHs in the Affected Business / Livelihood Monthly Income from the Affected Livelihoods (Rs.) Temporarily Affected Permanently Affected Total Male Female Male Female Male Female <5, ,001-7, ,501-10, ,001-15, ,001-25, ,001-50, , , , , >200, Total Source: LAR Census, August 2007 Note: 8 DHs have not provided their Income information 4. Impact on Community / Common Property Resources 54. A few numbers of common properties will be fully and partially affected by this road-project. They include six schools, four community signboards, one public graveyard, two public vehicle terminals, 239 power distribution poles, seven power transmission towers, five bus stops, and several other items as listed in the Table 10 and 11. The RP will include the rebuilding and relocation of these structures outside the new right-of-way (ROW).

37 25 Table 10 Type of affected community / common structures and the Type of impact Type of Community/ Common Structures Partially Affected (No shifting needed. Only Minor Repairs are Needed) Impact Fully Affected, but can be built in the remaining portion of the plot Fully Affected and needs to be shifting to another location Total Schools Community signboards Public graveyard / Cemetery Terminal for public vehicles Others (Specify) Total Source: LAR Census, August 2007 Table 11 Type of affected Utilities Type of Utility Partially Affected (No shifting needed. Only Minor Repairs are Needed) Impact Fully Affected, but can be shifted within the remaining portion of the plot Fully Affected and needs to be shifting to another location Total Power distribution poles Power Transmission towers Bus stops Others (Specify) Total Source: LAR Census, August Consultation Process for Land Acquisition and Resettlement 55. Being a highly populated urbanised area with a majority of land, assets and structures belonging to private owners, the consultation process calls for careful community awareness and mobilisation with the involvement of local stakeholders. In

38 26 this regard, three Divisional Secretaries, three Urban Councils/Pradeshiya Sabhas will have to play important mediatory roles for timely acquisition and resettlement after the negotiation of entitlements with DHs. 56. The consultation process carried out by the NHSP that was the execution of the RP would be a responsibility of the Project Management Unit (PMU) of RDA, with the assistance and guidance of the Environment and Social Division (ESD). 6. Legal Framework for Land Acquisition and Resettlement 57. The resettlement interventions in the RP have been proposed in accordance with resettlement laws and regulations adopted by GOSL, particularly under the National Environment Act (NEA), National Involuntary Resettlement Policy (NIRP) and Resettlement Framework of the NHSP. NEA requires preparation of a RP when there are more than 100 families are affected by any prescribed development project. However, NIRP requires a RP if there are more than 20 families affected by the project. The SPS of ADB stipulates the requirement of a RP when there is physical or economic displacement of people as a result of acquisition. RDA carries out resettlement as prescribed in the NHSP Resettlement Framework as well as ADB Involuntary Resettlement Policy in all projects funded by ADB. Note: List of DPs and their socioeconomic profiles were not available for review at the time of this study.

39 27 CHAPTER 4 SOCIOECONOMIC PROFILE 1. General Socioeconomic Condition in the Project Area 58. As was mentioned in the introduction, there will be a total of about 5,180 Displaced Persons in this road section, which include 1,229 DHs with 277 households fully displaced, and the remaining 952 will be only partially displaced. 59. As shown in Table 12, around 75% of the DHs are middle old-aged over and above 40 years of age, and almost four fifths of the total displaced DHs are maleheaded families. Table 12 Age of DP Household Heads disaggregated according to gender Age Male Female Total Year No.of Persons % No.of Persons % No.of Persons Over Total % 2. Information of Displaced Persons / Household Heads 60. In terms of the civil status of the families, 83% belong to the married category and only 8% are unmarried while the balance are categorised as widowed, divorced and/or separated. There are more men (63%) who are unmarried than women in the unmarried group, and in the widower category 84% are female. This interesting pattern is indicated in Table 13 below. Table 13 Civil Status of DP Household Heads disaggregated according to gender Civil Status Male Female Total No.of Persons % No.of Persons % No.of Persons % Married Unmarried Widow/widower Total

40 Another interesting pattern can be identified in the analysis of the education attainment of the displaced households. As seen in Table 14, over 73 percent of the AHHs have education level above the GCE (O/L) including 6 percent of graduates. This is a common phenomenon particularly in the urban and urbanised rural areas of the Galle district, according to other sources as well. Table 14 Educational Attainment of Household Heads disaggregated according to gender Education Male Female Total No.of Persons % No.of Persons % No.of Persons % None Class I-V Class VI-G.C.E. (O/L) G.C.E. (O/L) Pass G.C.E. (A/L) Pass University Undergraduate/ Graduate Post Graduate Other Total With regard to the ethnicity, there is no bigger diversity as almost 99 percent of the DH population belongs to the Sinhalese ethnic category, which is evident from Table 15. Table 15 Ethnicity of Household heads disaggregated according to gender Ethnicity Male Female Total No.of Persons % No.of Persons % No.of Persons % Sinhalese , Tamil Moor Other (specify) Total , Based on the surveyed information, the average family size of the displaced households can be regarded as 4 as a good majority (75%) of households have membership size range between 3 and 6 (Table 16).

41 29 Table 16 Size of DP Households Figure 2 Size of DP Households Household Size Total Number % Size of AP Households Total Number and above and above Total Over 10% of the DPs are below the age of 5 years, 15% are between ages 6 and 14 years, 32% are between 15 and 30 years and another 32% DPs are between 31 and 60 of age, whereas 11% are above 60. Therefore the total dependency rate stand at 21 percent, which is rather high compared to the country average. The male to female ratio of total DPs is 1 to 1.51, which is also much higher than the national average. 65. The previous study in preparing the following Tables numbering 17, 18, 19 and 20 have considered only the partially displaced household population (3,993) and fully displaced 1,187 DP household population has not been incorporated. In order to gain an idea the consultation presented this information and data in the same manner, but have mentioned that the data is only on partially displaced population. 66. Table 17 contains the details on age distribution of the partially displaced DPs by gender. Table 17 Age and Gender of partially Displaced Household Members Age Male Female Total No.of Persons % No.of Persons % No.of Persons 5 and below , and above Total 1, , , According to the information on marital status of the displaced household members, about two fifths of them are recorded as married of which only 38 percent are men. While the unmarried percentage of female is 62 percent of that category, there are 89 percent widows, which indicate that, the higher life expectancy among women than men. And also, there are more female members (60%) than male when the total number of household members is taken into consideration (Table 18). %

42 30 Table 18 Civil Status of partially Displaced Household Members Civil Status Male Female Total No. of Persons % No. of Persons % No. of Persons Married , Unmarried , Widow/widowers Minors , Total 1, , , The education attainments of the DP household members also show an interesting pattern as females higher in percentages of all categories as shown in Table 19. The most noteworthy fact is that female members without any education are almost double of the male members. Table 19 Education of partially Displaced Household Members Education Male Female Total No.of Persons % No.of Persons % No.of Persons None Waiting for Schooling Primary , , Secondary , Tertiary or Higher Other Total 1, , , The number of displaced household members with physical and mental disabilities is as low as 3% of the total respondents, and seriously disabled people reported are only 1%. Here too women have outnumbered the men, as clearly evident in Table 20. However when the absolute number is considered (85 people partially disabled and 52 percent seriously disabled) to be high in terms of the obligations arising from it for the vulnerable groups of the community. Table 20 Partially Displaced Household Members with Physical and Mental Disabilities Disability Male Female Total % % No. of Persons % No. of Persons % No. of Persons % None 1, , Partially disabled Seriously disabled Total 1, , Source: LAR Survey, August 2007

43 31 3. Trade and Business 70. As seen before (Table 8), there are a total of 271 persons, who are the owners or staff/workers of some kind of trade and business in the affected zone. Employees of these businesses will experience temporary work loss during road project implementation, and the owners of these businesses will experience income loss during the same period. 71. Around 229 DPs involved in trade/ businesses are men while 113 are women. Permanently affected number is 136 businesses of which 104 are males and 32 are females, while the respective figures for temporary affected businesses stand at 206, 125 and 81. The most number of persons who would lose businesses is skilled labor (120) while labor and allied services is second highest affected (112), as shown in Table 21. Table 21 Workers/Labourers in Businesses / Enterprises which are Affected by the Project Position Temporarily Affected Permanently Affected Total Male Female Male Female Male Female Managerial / Supervisory Position Labour and allied service (clerks, Cashier, office aids, book keepers, sales employees, etc) Non-agricultural skilled labourer (Masons, carpenters, Machine operators, Technicians) Unskilled Labourer Agricultural labour (Including workers in poultry farms/piggery) Total Percentage from Total Source: LAR Survey, August Income Sources of DH Members 72. The majority (99%) of displaced household members, who are employed, have only one major source of income and six persons have a secondary source of income. Of all income sources, commercial activities take the first place as 285 persons are engaged in this category of income, which is 26% of all income sources. The next highest source of income is the government service, which takes 211 (19%) persons, followed by another 170 (15%) persons engaged in private sector work. Other sectors of importance income sources are government service executives, private sector

44 32 executives, armed forces, skilled labour and vendors. The distribution of income sources by type is shown in Table 22. Table 22 Primary and Secondary Sources of Income of Displaced Household Members (employed) Sources of Income Primary Sources No.of Persons % No.of Persons Secondary Sources Total % No.of Persons Farming own land Agricultural labour Non-Agriculture labour (skilled) Non-Agriculture labour (unskilled) Fishing Weaving Animal Husbandry Commercial Activities Vendor (specify) Government Services/Executive Government Services/other grades Private Sector/Executive Private Sector/Other grades Armed Forces Police, Home guard/security Services Other (specify) Total 1, , Source: LAR Survey, August 2007 % 5. Vulnerable DPs 73. The SES conducted on special issues, has generated information relating to vulnerable groups and gender. According to the income levels, there are only 2.4% poor households (8.76% very poor and 2.11% poor with income below Rs. 5,000 per month), and another 2.42 percent belong to income category of transitional poor. The balance (27.49% average non-poor and 59.21% better-off) can be considered as nonvulnerable DPs (Table 23)

45 33 Table 23 Distribution of Displaced Households according to income levels per DS Division DS Division Income Group (per capita monthly income) Total Very Poor Poor Transitional Non Poor Better Off Baddegama Gonapinuwala Hikkaduwa Total Source: Socio Economic Survey, August The vulnerability survey reveals that there are 30 female-headed households, 24 elderly-headed households, 29 very poor households and six handicapped/disabled DPs. There is only one household that has been categorised as ethnic-minority headed DHs, who is considered a potential candidate for vulnerability. In total there are 90 vulnerable DPs as indicated in Table 24. These households high risk of impoverishment than the other DHs and as such they merit special attention in the process of resettlement and facilitating their entitlements. This vulnerable group is only 13.6 percent of the total displaced households. Table 24 Vulnerable Displaced Households DS Division Vulnerable DPs Total Female Headed Household Elderly Headed Household Very Poor Household Handicapped Disabled DP Ethnicity Minority / DP Household Head Baddegama Gonapinuwala Hikkaduwa Total Source: Socio Economic Survey & Census, August Gender Aspects 75. Of the all DH members, 53% are males and the remaining 47% are females, of which 15% are married, 49 are unmarried, 8 percent are widows, and 28 percent are minors. Of the total female DPs, 3.5% are illiterate people, which is equal to 65% of all illiterate people. Fifty five percent of all female have attained education up to primary level; another 29 females have attained secondary level education while 6% of female have tertiary education, which is considered significant compared to male DPs, whose

46 34 percentages read as 58 for primary education, 25 for secondary education and only four for tertiary education. 76. Although female DPs have a good educational background, the total share of employments by females is only 33%. Over 54% of females are employed as in labour and allied services and their share for non-agricultural skilled labour is 19%, which is 20% of total employed female. 77. However, being an urban and urbanized rural area, the men as well as women are more economically active in the road-project area, compared to other parts of the country. Usually, most women in this social and cultural setup undertake many responsibilities than their male counterparts. While men are mainly confined to economic activities, women undertake both household activities and part of income generating activities, if not fully involved in the main economic process. 7. Attitude of the DPs towards the Development of the road project Perceived Socioeconomic Impacts 78. Being mainly an urban region increasingly famous for tourist industry, one may expect positive attitudes from the part of the respondent displaced persons. However, when the multiple responses from different segments of people are analysed, the immediate concern of fully displaced persons is that project will cause the displacement of their traditional residences and disturbances to their livelihoods. On average most of the DPs perceive the project as a progressive move in terms of receiving the maximum benefit from the construction of this important highway link to the Southern Highway. 79. With their past experience of the Galle Colombo Highway, a good majority of the people expect the land value along the highway would be appreciated and thus the demand for land would also be increased, favouring their life chances. 80. As shown in Table 25, in terms of social impacts, one fourth of respondents are more sensitive to possible increase in noise pollution caused by the increased traffic on the future highway. In economic terms, their main concerns are the loss of income (15%) and temporary disruption on transportation (18%).

47 35 Table 25 DPs Perceived Adverse Social and Economic Impacts of the road project (multiple responses) Perceived Social and Economic Impacts Number Percentage Social Lose of relatives and neighbours Lose of friends Lose of religious place/s Affects Children's Education No sufficient remaining land to resettle Increase in Air and Noise pollution Temporary disturbance on Family Life Other Economic Loss of Income Increasing cost of living Parting from business premises and work places Limitation of Social Infrastructure Temporary disruption on transportation Temporary disruption on tourism Loss of goodwill Other Total Responses Source: LAR Census, August Perceived Social and Economic Advantages 81. Even though their perceptions towards immediate and short-term impacts of the road project on their personal livelihoods are rather negative, DPs regard it as a positive and timely move in terms of the regional development at large, and they perceive the project would accrue several social and economic benefits or advantages, as shown in Table They regard the definite increase in land value and the high demand for land as the most important changes that would make under the project, above all the social advantages. Main economic advantages that they perceive from the highway project

48 36 are increased transport facilities and the development in the business premises and work places. Table 26 DPs Perceived Social and Economic Advantages of the Road Project (multiple responses) Perceived Social and Economic Advantages Number Percentage Social Improve Road Security Improve the quality of Environmental conditions High demand for lands Increase the land value Improve tourism Other Economic Generate additional Income Reduce cost of living Develop business premises & work places Develop Social Infrastructure Develop transportation facilities Other Total Responses Source: LAR Census, August The highway project once completed would generate multiple advantages to regions with the road-associate other infrastructure facilities that would also generate benefits to people directly or indirectly engaged in tourism and related economic activities. This is so perceived owing to the fact that direct access to and from the Southern Highway is provided by the road project that would open the door to the tourist zone in Hikkaduwa and beyond, bringing in a chain of socio-economic benefits. 9. Indigenous People 84. There are no indigenous people located in the vicinity of this road. The screening form is prepared and submitted as Annex 3 (b).

49 37 CHAPTER 5 INFORMATION DISSEMINATION, CONSULTATION PARTICIPATORY PROCESS 1. Consultation process with agencies responsible for Land Acquisition and Resettlement 85. Prior to land acquisition and resettlement, workshops were conducted to apprise the principle agencies responsible for land acquisition namely, Ministry of Land and Land Development, Departments of Valuation, Survey, Government Printer and the Divisional secretaries. These workshops were organized by the PMU with the concurrence of the Ministry of Ports and Highways. 2. Public Disclosure and Information Dissemination 86. Public disclosure of information and maintenance of transparency by the PMU with all stake holders, specially the displaced persons is one of the cardinal policies of the NIRP and SPS. When activities of the PMU become transparent it will lead to the establishment of mutual trust between the PMU and the stake holders. This process will have salutary effect on all activities of the road project as suspicion and mistrust can have serious negative effect on the implementation of project activities 87. After the initial discussions with the officials of the relevant departments, As described in preceding paragraph, prior to commencement of the land acquisition process, series of public disclosure measures were taken to educate DPs an land acquisition process and resettlement sites. 3. Consultation during RP preparation and implementation 88. Before the commencement of the land acquisition and socio economic survey, resettlement assistants were recruited to facilitate the process of consultation. A work shop was conducted in Colombo for the representatives of the main agencies connected with the land acquisition and resettlement to apprise them of the programme in place to disseminate information regarding land acquisition, preparation of RP and the resettlement process. Thereafter discussion was held with the Divisional Secretary, Kalutara to organize an awareness meeting with all concerned stake holders. This meeting was attended by members of the clergy, politicians of the area Gramaniladaris, Samurdhi Niyamakas, agricultural assistants, and representatives of the community based organizations and representatives of the relevant government departments. Over two hundred people attended the meeting where hand outs on the project profile and compensation package was distributed among the participants. Presentations were made by the officers of the NHSP on the design of the road project, land acquisition process and brief introduction of the Land Acquisition Act and strategies and proposals to address the resettlement issues. After the presentations a friendly discussion was followed between the officers and the audience to clarify issues which were not fully understood by the members of the public. The participants pledged

50 38 their support for the expeditious implementation of the project. The information flyer distributed among the participants who are directly involved with the functions of land acquisition and resettlement contains the description of the proposed improvement to the highway and entitlement matrix, and the addresses and telephone numbers of persons to be contacted for further clarifications and information. There were few inquiries from DPs subsequent to the meeting PMU had with them. PMU promptly responded to such inquiries. 108 stake holders attended the meeting. 89. After the meeting with the principal members of the concerned departments. a work shop and a meeting were conducted for the staff of the Divisional Secretary, who are directly involved with the functions of land acquisition and resettlement and for the DPs, their representatives, GNN, Samurdhi Niyamakas, representatives of CBOs, with the assistance of Department of Surveys and Valuation, on the law, procedures and systems in relation to acquisition of land and the payment of compensation.following participants were present. Location Participants Buildings Research, Centre, DSs, Assistant DSS (ADSs), Superintendent of Surveys, Regional Valuers Battaramulla District Secretariat Kalutara, Two buddhist monks, Provincial Council members, Secretary, Representatives from the Departments of Survey, Valuation UDA, Representatives of Community Based Organizations (CBOs) and NGOs and large number of would-be Displaced persons and former District Secretary, Kalutara Colombo Divisional Secretaries, ADSs, Land Officers, subject Clerks 4. Information Disclosure 90. The disclosure arrangement of information on the land acquisition process, payment of compensation, entitlements which started from the planning stage will continue as a participatory process till the end of the project. 91. The RP should be available for the general public to study and will be displayed at public places such as DS Offices and Local Authorities (Municipal Council / Urban Council / Pradeshiya Saba) where DPs have easy accessibility.

51 39 Table 27: Completed and Planned Public Consultation and Disclosure Activities 1. Completed Consultations and Disclosure Activity Place Objective Timing Number attend Responsible Unit Feedback / Issues / Concerns / Raised Action Taken Workshop with concerned Departments Building Research Centre, Pellawatta, Colombo. To disseminate information regarding the project and seek their assistance to accelerate the process of land acq & RS Before meeting public, the 80 LAR Unit of NHSP Staff shortages, and assistance from RDA on logistics, sundry expenses Acquisition Officers to be recruited by PMU to assist the DSS, Provide logistical support Surveying of land by Private Surveyors under the supervision of SD Public Meeting with DPs NGO,CBO and National and Local Politicians Salalankara College, Gonapinuwala & Divisional Secretariat of Baddegama Explain the parameters of the road project, land acquisition process, Safeguard Policy Statement, 2009 & NIRP on Involuntary resettlement Payment of compensation and entitlement matrix Before the conduct of the Census &SES Survey DS & LAR unit of the NHSP Loss of income,.resettle at the same location even if the remaining extent does not conform to the minimum area stipulated for buildings by the UDA. Payment of reasonable compensation issues raised by would be affectees UDA has agreed to allow building at the same location even if the remaining extent is smaller than the required extent. Distribution of informative literature Divisional Secretariat of Gonapinuwala Public disclosure, maintenance of transparency, Confidence building, Before the conduct of the Census &SES LAR unit of the NHSP & ESD of RDA Accelerate the land acquisition and resettlement process, request by DPP Negotiating with the relevant agencies to accelerate the land acq. Process

52 40 2. Planned Consultations and Disclosures Activity Objective Timing Responsible Unit / Agency Visit to DP s Residences Distribute the Sec2 Notice With the publication of the SEC notices DS,GNN,PMU Consultation with DPs Explain the process leading to the taking over possession of lands Before publication of the Sec 38 (a) notice DS,ESD,PMU, Meeting DPs in groups GN Division wise Prepare them to face the title determination inquiries Sec.9 ( 1) and brief them on the documents to be submitted at the inquiry Before Sec.9(1) inquiries GNN, RAA & PMU Meeting with DPs & host community, on selection of relocation sites, it available to be developed by the PMU Discuss options of relocation Before relocation DS, GNN, RAA, PMU & ESD Meeting with the DPs Post resettlement Issues and formation of societies by the DPs After resettlement DS, GNN, RAA, PMU & ESD Note: The consultation is an ongoing process there is a continuous dialogue between the resettlement staff and the DPs.

53 41 CHAPTER 6 ENTITLEMENTS 92. The cabinet of ministers has approved an entitlement package to cover all most all anticipated losses by the potential affectees. Interests of the lessees, vulnerable groups, loss of employment and income from businesses have been taken care of by the compensation package applicable to the displaced persons of road project B153.This package is more advantageous to the DPs than the package implemented in the Southern Transport Development Project and covers all aspects of losses anticipated by the DPS. 1. Highlights of Entitlements 1.1. Replacement Cost 93. Replacement cost could be defined as the compensation required in replacing a similar land in a similar location and a building of similar floor area and construction Loss of Buildings 94. Replacement cost will be paid for all buildings irrespective of the age of the building. DPs are entitled to retain the salvage materials.in order to translate the concept of helping the displaced persons to achieve a higher level of living standard than what they experienced prior to the implementation of the project, A DP who was in occupation of even a cadjan hut (temporary) is entitled to a cash grant of Rs.300,000 for the loss of the house in addition to other compensation available for resettlers Loss of Agricultural Land 95. Agricultural land is a land that is under perennial crops or cultivated seasonally or annually by the owner or lessee or tenant, in conformity with the current international practice, households will be classified as fully displaced persons when the loss is, Total area Affected area Compensation applicable Less than 01 acre 10% Cash or land (if available) Compensation, for loss of crops Livelihood grant More than 01 acre 25% same as above 96. Title holders who lose less than 10% from a total holding is considered as DPs who are not significantly affected. Wherever possible land to land option will be considered in addition to the compensation of loss of income, where suitable land is not available adequate compensation for the loss of land will be paid as per the entitlement matrix.

54 Temporary Loss of Private Land 97. During construction temporary occupation of privately owned land may be required to excavate materials for filling and formation of embankments. If such a necessity occurs the contractor with the concurrence of PMU will sign a temporary occupation contract with the owner of the land specifying: a. Period of occupancy b. Terms and compensation amounts mutually agreed c. Compensation for material losses for the duration of the temporary occupation period d. Compensation for other disturbances and damages caused to property e. the frequency of compensation payment f. Rehabilitation and restoration measures g. Land will be returned to the owner at the end of the temporary occupation period restored to its original condition or improved, according to the agreement Determination of Rates for Properties Acquired 99. The rates that will be used for the calculation of compensation for the acquired properties will be based on the prevailing market rates in order to reflect the cost of replacement of the properties acquired. NIRP and SPS mandate that the compensation payable to DPs should be adequate enough to replace their loss assets. Project has taken into consideration those policy guidelines in determining the relevant rates Special Needs of Vulnerable Households 100. Vulnerable households have being identified by the land acquisition and SES survey conducted by the project in the second half of July 2007.Women headed households, very elderly, disabled and people with title to their land have been included in this category. They are entitled to an special grant of Rs.15,000 per household in addition to the compensation available for other losses. Assistance will be provided by the PMU during the construction of houses by them Special Preparation for the Vulnerable Groups 101. A plan of action will be specially designed for the vulnerable groups as they would feel the effect of resettlement more fully than others.the identified group of vulnerable people will be helped by community organizers who will identify their needs and interests in consultation with them, prior to resettlement these community workers will help the vulnerable DPs to build their skills, identify opportunities, and review constraints that hinders improvement to their socio economic status. The resettlement options also could be discussed with them to enable them to select the best option available to them.the small groups of vulnerable people depending on the category of vulnerability may be linked to national institutions that provide assistance and interventions to such groups. As an example disabled people could be linked to the National Disabled Council which falls under the purview of Ministry of Social Services.

55 Entitlements for Tenant Cultivators Under Paddy Lands Act 102. Paddy Lands Act of 1958 was one of the most socially progressive legislation ever to be enacted by the Parliament of Sri Lanka. The Paddy Lands Act ensures the perpetuity of tenancy. As per the provisions of the Paddy Lands Act, part of the compensation of the acquired property is allocated to the tenant. Land Owned by State Plantation Corporation 103. People who are in possession of lease agreements with the plantation corporations are entitled to loss of income for the balance period of the lease agreement. 2. Project Entitlement Matrix Type of loss Entitled Persons Entitlements Intent/ Requirement Responsibility A. AGRICULTURAL LAND Loss Agricultural land of Owner with title deed or registration certificate All (cash) payments for land will be at replacement costs. Cash payment for loss of standing crops and trees at market prices In case the DP loses 10% or more of their productive, income generating assets and / or remaining portion is economically not viable for continued use as determined by LARC, these options will be available: - 1) If opted by DP, the remainder land will be acquired or injury will be paid at replacement cost if economically not viable. Reasonable time will be given to harvest perennial crops if not payment will be made at market value. 2) Preference will be given to DPs for land for land option (similar location and productive quality, subject to availability or cash payment for loss of land at full replacement costs. Cash Payment for loss of income for portion of land as per the land acquisition Act or as determined by the LARC. Payment for lost assets and restoration of livelihood. Payment for loss of income based on entitlement under Land Acquisition Act [46 1 (iii)] or as determined by the LARC. RDA, CV, DS, LARC. LARC Loss of access to agricultural land Tenant, with lease user No payment for land. Cash payment for loss of standing crops and trees at market prices, if Payment to cover lost crops and restoration of livelihood RDA, CV, DS, LARC.

56 44 Type of loss Entitled Persons Entitlements cultivated by tenant or user with lease; AND Cash payment for loss of net income for portion of land affected for the remaining leased/assigned period. Intent/ Requirement Responsibility Loss of access to agricultural land Ande farmer (sharecropper) No payment for land. Cash payment for loss of standing crops and trees at market prices; AND Transition subsistence (in cash or kind) allowance equivalent to loss of crop or harvest for portion of land affected for the remaining period of sharecropping agreement. Payment to cover lost crops and restoration of livelihood RDA, CV, DS, LARC. Loss of access to agricultural land Non-titled user or squatter on private land or state land B. RESIDENTIAL LAND AND STRUCTURES Loss of Residential land and structure Owner with title deed or registration certificate No payment for land. Cash payment for loss of standing crops and trees at market prices, if cultivated by him. All (cash) payments for land and structure will be made at replacement costs. All payments at replacement cost in cash, according to the actual loss to repair or rebuild the structure to original or better condition when remaining land sufficient to rebuild upon; For structures not having sufficient land to rebuild upon will be entitled to the following: 1. All (cash) payments for land and structure at full replacement cost (for materials and labor) in cash, WITHOUT deduction for depreciation or salvageable materials; 2. Assistance from LARC to locate alternative plot for relocation; OR 3. Rehabilitation package G 2. Shifting allowance see G1. 4. Displaced persons who lose their residence completely he/she is entitled to extra allowance between Rs. 150,000 to Rs. 500,000 depending on the location. 5. For non-title holder the allowance for a alternative land varies from the Rs. 100,000 to Rs. 250,000 depending on the location. Rent allowance varying from Rs. 20,000 to Rs. 100,000 will be paid according to the location (Local Authority Area). Minimum payment for a house (Hut) irrespective of the title will be Rs. Payment to cover lost crops and restoration of livelihood. Payment for lost assets, assistance to reorganize on existing land or relocate on alternate land and support for transition period. RDA, CV, DS, LARC. RDA, CV, DS, LARC.

57 45 Type of loss Entitled Persons Entitlements 300,000 Intent/ Requirement Responsibility Shops and Houses under the Rent Act Owner/ Renter/ Lessee Difference between replacement cost and statutory payment to be divided between the owner and the occupant on the following basis. Equitable distribution of compensation depending on the period of occupation. D.S, Valuation Department, RDA Payment of compensation at replacement cost, according to the following criteria. Period of occupation Over 20 years years years Less than 05 years % of payment occupant owner Loss of rental accommodatio n Tenant, with lease user If there is partial loss of rental accommodation, DP has the option to stay with the owners agreement OR if DP chooses to move out, cash assistance of Rs AND Assistance in finding new affordable rental accommodation. Cash payment for rental allowance or cash value of remaining lease, assistance for finding alternate rental accommodation and support during transition period. RDA, CV, DS, LARC. Loss residential structure of Non-titled user, non-permitted user or squatter No payment for land. All payments for structure at replacement costs in materials, cash according to the actual loss for repairing or rebuilding the structure; AND If affected land is state land DP may rebuild on the remaining land with permission, and if affected land is private land the project will encourage DP to relinquish the land and relocate on alternate land or DPs can rebuild on existing land then shifting assistance G 1 i. If DP has to Payment for lost assets, assistance to reorganize on land or provision of alternate site if choosing to relocate and support for transition period. RDA, CV, DS, LARC.

58 46 Type of loss Entitled Persons Entitlements relocate then Rehabilitation package G 1 ii and G 2. Intent/ Requirement Responsibility If part of the structure is acquired the area to be considered for payment will be calculated up to the structural support point. C. COMMERCIAL LAND AND STRUCTURE Loss of commercial land and structure Owner / operator of registered business All (cash) payments for land lost at full replacement cost; Payment at replacement cost in cash, according to the actual loss to repair or rebuild the structure to original or better condition when remaining land sufficient to rebuild upon; Payment for any associated loss of income while commercial structure is being rebuilt. For structures not having sufficient land to rebuild upon will be entitled to the following: 1. All (cash) payments for structure lost at full replacement cost (for materials and labor) cash, WITHOUT deduction for depreciation or salvageable materials; 2. Assistance from LARC to locate alternative plot for relocation; OR if opted by DP on recovery of the undeveloped value of the plot depending on availability of land 3. For income losses cash payment not exceeding three times the average annual net profits from business, as shown by the books of accounts, for three calendar years immediately preceding acquisition or livelihood restoration grant, whichever is higher 1. For businesses who do not maintain books of accounts cash payment equivalent to 6 months net income OR 4. Livelihood assistance grant, Rs 15,000.00, whichever is the higher; 5. Rehabilitation Package G 2 and G2 ii if required. Project shall give reasonable time for DPs to continue their business operation while rebuilding their structures. DPs will rebuild their structure as soon as payment is released and clear the area in the agreed timeframe. Transition assistance and income restoration. RDA, CV, DS, LARC. Loss commercial Structure of Tenant / operator of registered If there is partial loss of structure, DP has the option to stay with the owners agreement or if DP Cash payment for livelihood restoration, assistance for finding RDA, CV, DS, LARC.

59 47 Type of loss Entitled Persons Entitlements business chooses to move out, cash assistance of 15,000 AND Assistance in finding new affordable rented premises to reestablish business For income losses cash payment not exceeding three times the average annual net profits from business, as shown by the books of accounts, for three calendar years immediately preceding acquisition or livelihood restoration grant, whichever is higher. For businesses who do not maintain books of accounts cash payment equivalent to 6 months net income OR, Rs.15, 000 Livelihood assistance grant, whichever is the higher. If part of the structure is acquired the area to be considered for payment will be calculated up to the structural support point. Intent/ Requirement Responsibility alternate rental accommodation and support for income losses and during transition period. Loss commercial Structure of Owner or operator of nonregistered business / squatter For structure all payments for structure lost at replacement cost in cash, according to the actual loss; AND For income - cash payment equivalent to 6 months income OR Livelihood assistance grant, whichever is the higher; AND If affected land is state land DP or if land is private land the project will encourage DP to relinquish the land and relocate on alternate land or; AND Rehabilitation package Items G.2, and G.2 ii if required. Payment for lost assets, transition assistance and income restoration RDA, CV, DS, LARC. D. OTHER PRIVATE PROPERTIES OR SECONDARY STRUCTURES Partial or complete loss of other property or secondary structure (i.e. shed, outdoor latrine, rice store, animal pen etc) Owners of structures (regardless if the land is owned or not) All (cash) payments for affected structure at replacement cost; OR Cost of repair of structure to original or better condition; OR Cash assistance for relocation of structure. Payment for loss and relocation if required RDA, CV, DS, LARC. Loss of tombs or graves All owners All cash payments per tomb to cover the cost of exhumation Payment for loss and relocation if required RDA, CV, DS, LARC.

60 48 Type of loss Entitled Persons Entitlements (including any religion ceremony) if required relocation OR cash payments af Rs. 15,000 per tomb to cover the cost of exhumation (including any religious ceremonies if required) Intent/ Requirement Responsibility E. LOSS OF INCOME OF EMPLOYEES OR HIRED LABORERS E.1 Temporarily Affected While business re-establishes (i.e. reorganizing on remaining land or relocating in the same area) All affected employees, wage or daily laborers in private or government businesses Cash payment of Rs or Three month salary whichever is more Businesses will be encourage to retain existing employees Payment for lost income during business reestablishment RDA, CV, LARC E.2 Permanently Affected Job loss due to relocation of business to another area or business operator decides not to re-establish All affected employees, wage or daily laborers in private or government businesses Cash payment of Rs or Three month salary whichever is more Payment for lost income, rehabilitation package to provide support and income restoration RDA, CV, LARC F. TREES & STANDING CROPS (already included under A) Loss of crops and trees Person who cultivates crops and/or trees owns by private /state; if the trees in private the timber given to owner and if trees in state land the timber given to timber cooperation; (regardless if the land is owned or not) For owner, payment for crops and trees at market prices; For tenant, payment for crops shall be paid to tenant; For sharecropper, payment for crops shall be shared between owner and sharecropper according to the sharecropping agreement; For all - advance notice to harvest crop; AND Payment for net value of crops where harvesting is not possible; AND Cash payment for loss of trees and standing crops at market prices; AND Rights to resources from privately owned trees (i.e. timber or firewood) All felled trees will be given back to the owners. Payment for losses Payment for trees calculated on market value on the basis of land productivity, type, age, and productive value of affected trees RDA, CV, DS, LARC G. LIVELIHOOD RESTORATION & REHABILITATION ASSISTANCE G.1 Materials Transport Allowance

61 49 Type of loss Entitled Persons Entitlements Intent/ Requirement Responsibility i. Reorganization of residential structure DPs reorganizing or rebuilding on same plot Cash assistance (shifting allowance) of Rs 5000 to depending on the floor area of the house DP/household Payment for disturbance and to assist in rebuilding RDA, CV, LARC ii. DP requiring relocation for housing Relocating DPs Cash assistance (relocation allowance) of Rs up to an amount of Rs 15,000 DP/household for transportation to new location or site based on floor area of the house in occupation before relocation. Allowance to cover transport of household or commercial effects, salvaged and new building materials RDA, CV, LARC G.2 Livelihood Restoration (Grant & Training) i. Permanent effects on livelihood DPs/household Livelihood restoration grant - as cash assistance of Rs 15,000 per household (plus professional assistance and advice, if required, to invest funds or to set up a business at a commercially viable location). Cash sum to offset income losses not directly paid for, to provide support while business reestablishing or as start-up investment for new business if DP has to change livelihood. RDA, CV, LARC ii. Permanent effects on livelihood Severely affected farmers remaining on affected land Assistance to increase productivity on remaining land (i.e. increasing cropping intensity, use of high yielding seeds, diversification and introduction of new seeds or crops etc) and assistance to access existing subsidies. Access to existing agricultural extension services and development of new services as per the specific needs of DPs as identified through consultation with them, support for access to existing subsidies, development and training from Department of Agriculture, Tea Smallholding Authority, Agrarian Services Department, Coconut Development Board, and Rubber Control Department RDA, CV, LARC G.4 Special Assistance Agricultural Lands other than paddy lands title Owner For the agricultural land compensation payable under A and B in item one is applicable, payment of 5% of the statutory RDA, Valuation Department, D.S

62 50 Type of loss holder Entitled Persons Entitlements value subject to a minimum value of Rs.10,000 and a maximum of Rs.100,000, if vacant possession is handed over on or before a date nominated by the RDA/DS Intent/ Requirement Responsibility Sufficient time to be given to harvest crops or Compensation for the loss of crops. Incentive payment Owner, or occupant at the time of handing over the property Ex-gratia payment of 25% of the statutory value of the building to be paid, if the vacant possession is handed over on a date stipulated by the D.S/ RDA, subject to a minimum of Rs.25,000 and maximum of Rs.500,000 To encourage DPs to handover the acquired properties on a timely basis. D.S, Valuation Department, RDA Effects on vulnerable DPs Vulnerable DPs including the poor, elderly DPs, ethnic minority households IPs, female - headed households, and disabled A special grant of Rs 15,000 per DP/household to improve living standards of vulnerable DPs and households Assistance to vulnerable households in finding suitable land for relocation and shifting. Assistance, over and above payment for lost assets, to reduce impacts of resettlement which can disproportionately affect the already vulnerable and to ensure that the project does not simply re-establish levels of poverty, vulnerability or marginalization RDA, CV, LARC H. COMMUNITY ASSETS Loss of buildings and other structures (schools, temples, clinics, walls etc), infrastructure (local roads, footpaths, bridges, irrigation, water points or communal hand pumps etc), common Divisional Secretary of the division, urban ward, village, local community or local authority owning or benefiting from community property, infrastructure or resources Restoration in existing location of affected community buildings, structures, infrastructure and common property resources to original or better condition; OR Replacement in alternative location identified in consultation with affected communities and relevant authorities; OR (Cash) Payment at full replacement cost; AND restoration of buildings, structures, infrastructure, services or other community resources. Full restoration of buildings, structures, infrastructure, services or other community resources by contractor (costs to be borne by project) or payment for such if agreement for local authority or community to undertake the restoration works. RDA, CV, LARC

63 51 Type of loss resources (such as water supply, community forests) Entitled Persons Entitlements Intent/ Requirement Responsibility Any unanticipated adverse impact due to project intervention Any unanticipated consequence of the project will be documented and mitigated based on the spirit of the principles agreed upon in this policy framework. Note: The Ande farmer is a person who cultivates a land owned by another person on harvest sharing basis. Cut-off Date for consideration of payment of compensation 104. Cut-off date for consideration of payment of compensation is the date of publication of the section 02 notice under Land Acquisition Act. For B153 the said date date date is 12/04/2008. The cut-off date is common to both the title and non-title holders.

64 52 CHAPTER 7 GRIEVANCE REDRESS MECHANISM 105. The Project will pursue a participatory approach in all stages of planning and implementation. This is expected to ensure that the displaced people have nothing or little to complain about. However, some people may still remain dissatisfied for some reason or the other. Many grievances arise due to inadequate understanding of project policies and procedures, and can be promptly resolved by properly explaining the situation to the complainant Timely redress of grievances is critical to the completion of a project in a satisfactory way. The effort will therefore be to first seek resolution of these grievances at the local level through the mediation by Grama Niladari, village leaders, and by involving resettlement specialists, NGO and others as necessary. The Samatha Mandala, committees set up by the Ministry of Justice for conflict resolution can also be approached. 1. Grievance Redress Committee 107. For complaints and disputes that cannot be settled locally, the Road Development Authority (RDA) will establish a Grievance Redress Committee (GRC) with well-defined functions, composition, and a procedure to redress grievance. (See below giving for the grievance redress process) 108. For Whom: Any displaced person (DP) may approach the GRC to seek its assistance in resolution of any problem, complaint or dispute concerning land acquisition, compensation and resettlement. DPs dissatisfied with awards may also appeal to the GRC where GRC will refer in to the appropriate forum after examining the complaint. Only appellants or others specifically authorised may attend the GRC meetings Functions: The function of the GRC is to remove grievances, settle disputes of the displaced persons regarding land acquisition, compensation and resettlement. The GRC mandate and procedures will be given wide publicity so that DPs have a better understanding of their entitlements, rights, and responsibilities Composition: The GRC will be a five member committee and headed by the Assistant Divisional Secretary with the relevant division: Project Manager/Resettlement Officer, District Valuation Officer, and four civil society representatives (who may be chosen from among the recognized NGOs/CBOs, clergy, persons representing DPs groups and women). In addition, the Resettlement Officer/SIMO of the RDA will function as the Secretary of the GRC and will be responsible for keeping record of all grievances registered and action taken on them. When required, the GRC can seek the assistance of other persons/institution Venue of the GRC Meetings: The GRC will meet at the project site keeping in view the convenience of the displaced persons. But it will be free to hold its meetings at any other locations if that will be more convenient to DPs.

65 Working System: The GRC will deal promptly with any issue relating to land acquisition, compensation and resettlement that is brought before it. The GRC will make all efforts to see that these issues are also resolved within 2-3 weeks. The GRC will take decisions on the basis of a majority vote Powers: The GRC has no authority to deal with cases pending in a court of law. It cannot challenge the legal entitlements of DPs. The GRC will also refrain from making decisions on issues relating to design and related engineering matters and on pending compensation cases. However, the GRC can invite the contractor and the engineer to clarify issues including construction impacts Procedure for Resolution of Disputes: Displaced persons will be free to present their grievances without any fear or pressure from government authorities. They can present their grievance verbally. They can also present their grievances in writing, for which assistance will be provided if so required The decisions of the GRC will be conveyed to DPs in writing. Three copies of the decisions will be provided: one for the DP, second copy for the Project office and the third copy for the Divisional Secretary The decisions of the Grievance Redress Committee will be in conformity with the resettlement policy and the entitlement matrix Appeal against GRC Decisions: Displaced persons not satisfied with the GRC decisions can appeal to higher authorities in the Project, the Ministry of Ports and Highways, or to even Courts of Law The displaced persons who are aggrieved by the decision of GRC will be free to approach higher authorities for grievance redress. Grievances relating to land titles, which is a legal issue, will remain outside the purview of this Committee, and persons with such grievances will be advised to approach the appropriate courts of the laws to settle such disputes. DPs will be exempted from all administrative and legal fees associated with the grievance settlement procedure, except for cases filed in courts Role of Secretary GRC: PMU/Secretary will educate public regarding the GRC process. All complaint will be documented by secretary of GRC. He will arrange GRC meeting when sufficient number of complaints are available. All correspondence regarding the GRC will be attendant to by him. Secretary/PMU will inform the DPs on the roll of the GRC through GN and CBOs.

66 54 2. The proposed composition of the GRC Asst. Divisional Secretary Chairman Representative from the PMU (to be the Secretary to the GRC) President Peace Council Member of Clergy Representative of NGO/CBO Land Acquisition Compensation Review Board 120. There is a provision in the LAA for any aggrieved party to appeal to the LARB, in respect of the statutory valuation determined by the Valuation Department. Such appeals should be made within 21 days of the award of the compensation under section 17of LAA. Table 7C: Grievance Redress Process Step One Step Two Step Three Step Four The displaced person approaches the Project staff at site with a complaint regarding his problems that he thinks have not been addressed properly or compensation is inadequate restore is loss properties and standard of living. The project staff explains him to steps taken to assist him and solved his grievances but, he remains unconvinced. Not satisfied with the explanation by the Project staff, DP goes to the Grievance Redress Committee about which he had come to know from a consultation meeting that he had once attended. He first makes his complaint to the GRC verbally but he follows it up with a written petition. The GRC assures him that his complaint will be looked into and a reply sent to him within 4-5 weeks. If the complaint is within the mandate of the GRC, GRC will examine it and submit the findings to appropriate forum for necessary action. If required DP will be invited to GRC when his complaint is taken for scrutiny. If the complaint is not based on a proper understanding of compensation procedure or any legal issue was involved or complaint is not within the mandate of GRC the DP will be accordingly informed within 15 days. This again leaves the DP disappointed. The DP persists and this time knocks at the door of the Compensation Review Board with hopes of getting his grievance redressed forever. But this does not happen. The last resort left for the DP is the Court of Law if he still feels that none of the above organization has delivered justice to him. The decision of the court would be final. Since his problem has adjudicated by a competent, knowledgeable legal body.

67 55 3. Other agencies that the DPs could forward their grievances 3.1. Samatha Mandalaya SM (Board of Mediation) 121. This is a body of distinguished citizens functioning as a conflict resolving committee appointed by the Ministry of Justice for each Judicial District, the decisions of the Samataha Mandalaya is not binding on the parties to the conflict. It has no mandate to enforce decisions, this is purely a consultative process, and disputes between DPs could be referred to SM to persuade the parties to arrive at an amicable solution without resorting to protracted litigation Human Rights Commission 122. By the constitution of Sri Lanka, commission has been established to entertain and inquire into the violation of human rights by state officials and agencies, this is a built in mechanism provided by the state to safeguard the rights of the citizens against arbitrary and illegal actions of the state officials. An aggrieved party could seek relief from HRC. Chairman and members of the HRC is appointed by the President on the recommendation of the Constitutional Council Parliamentary Ombudsman 123. Independent official appointed under the Constitution, to inquire into the grievances brought to his notice by the members of the public Parliament Petition Committee (PPC) 124. An aggrieved member of public could bring to the notice of the Hon. Speaker of Parliament through a member of parliament (peoples representative) his grievance. Hon. Speaker will direct the PPC to inquire into the matter. The committee will direct the offending party to provide relief to the aggrieved, if the committee find that relief sought is justifiable Parliament Consultative Committee of the Ministry of Ports and Highways 125. This is another forum where an aggrieved DP could direct his grievance. Secretary to the Ministry of Ports and Highways, Chairman and General Manager and other relevant senior officers are members of this committee which will be chaired by the Minister in charge of the portfolio of highways.

68 Litigation 126. An displaced person aggrieved by a decision of any public official in the process of implementation of the land acquisition and implementation process could challenge such decisions in an appropriate court of law, if such person is unsuccessful in obtaining a reasonable redress through discussions Legal Aid Commission 127. Government of Sri Lanka has established an agency to help people who cannot afford legal expenses, when they seek redress from the judiciary.on an application made to the Secretary of the Legal Aid Commission with evidence of his income, the Legal Aid Commission, appear for the aggrieved party in a court of law without fees.

69 57 CHAPTER 8 RELOCATION OF HOUSING AND SETTLEMENTS 128. The PMU, with the assistance of DSs will take adequate measures to help the DPs to relocate their residences and businesses in a manner that would not disrupt their style of lives and socio economic standards. In the area covered by the road project, the partially displaced houses and business establishments could be relocated in the same premises, if sufficient land is available to do so. It would be a very desirable option for the DPs. With the development of the road, the remaining portions of the properties will appreciate in value considerably. Even where total house has to be demolished, if sufficient land is available to rebuild the house in the same premises, the DPs will be encouraged and give all assistance to fulfil this option. 1. Options for Relocation of Housing and other Structures 129. Several options are available for DPs with regard to housing relocation. They are as summarized below: Reestablish remaining structure in the undisplaced portion of their property; This option is available for DPs with sufficient remaining land to rebuild their affected structure Self-relocate to a site chosen by the DP the DP shall be given cash compensation to purchase a replacement land and relocate. Support shall also be provided by RDA during the transition period Among house renters, the DP has the option to stay with the owner s agreement. Or if he chooses to move out, he shall be provided cash assistance equivalent to 6 months rental allowance Table 28 Adequacy of Remaining Land or Availability of Alternative Land for DPs to Continue Their Affected Trading/Business/Agricultural Activities or Residence Affected Activity Remaining Land Adequate to Continue Activity Has Alternative Land to Continue the Activity No Alternative Land to Continue the Activity Total Trading/Busine ss Agricultural Residential Source: LAR Census, August 2007 Note: 22 DHs have not answered for this question As indicated in Table 28, majority of people have sufficient land adequate to continue their respective activity in the remaining land. Accordingly, 69 percent of businesses, 87 percent of agriculture work and 90 percent of residences need not be relocated, and another small group of DPs (4%, 2%, and 4% respectively), has alternative land to continue their activities. Therefore actual need for relocation of their

70 58 affected activities to new locations is only 27% for businesses, 11% for agriculture work and 6% of residences. 2. DPs Perceptions and Preferences 131. Table 30 illustrates the preferences of DPs on compensation. DPs indicated that the compensation packages should be similar with what is being paid currently under ongoing donor-assisted road projects. DPs losing residential and commercial structure preferred to re-establish those within existing land, if their structures were to be partially affected. However, DPs who are fully affected requested the assistance of RDA, PMU to find suitable land The total respondent to various options of relocations was 1140 DP households, of which 91 percent opted for land for land and only a little over 1 percent preferred for cash option. Another 8 percent of DP households had not decided on their option at the time of the LAR survey. Table 29 Compensation Preference of DPs Who Will Lose Land (Multiple responses) Preferred Compensation for Land Number Percent Land for Land Cash Compensation Don t know/can t say Other Total According to the LAR Census conducted in the road project area, responses to the relocation preferences are not quite conclusive, as 83 percent of the DP households have not decided or not responsive to the provided options. While 13 percent of DP households are willing for self-relocation, only the remaining 4 percent have given their consent for relocation in a site to be identified and provided by Government (Table 31). Table 30 Relocation preference of DP Households which need to relocate Option Number Percent 1. Self-relocate to another site Relocate in a site to be identified and provided by Government Undecided/ Don t know Total Source: LAR Census, August 2007

71 59 3. Legal Arrangements for Tenure and Titles 134. The arrangement for legal rights for tenure and titles will be made to both relocated DPs and stationary DPs who have lost part or full of their land, assets and livelihoods. 4. Social Integration 135. The adequate provisions for social integration of the relocated DPs will be taken by a number of people-friendly activities described under section 10.2, and these include participatory approaches like social mobilisation, group level training, technology transfer and creating linkages with service providers and relevant NGOs, aiming at empowerment of the target DPs.

72 60 CHAPTER 9 INCOME RESTORATION AND REHABILITATION 1. Livelihoods Risks and Resources 136. The present highway project is designed as a road widening activity involving two strips of land from either side of the ROW. Average extent that would be acquired from each of the affected premise would be around 2 perches. Three townships of Hikkaduwa, Gonapinuwala and Baddegama are rather densely populated urban centres in the Galle district. Being the centre for Southern Tourism Belt, the population density is heavy in Hikkaduwa town, and it gradually decreases towards the interior two urban centres The business premises on either side of the road are either fully or partially get affected. 371 affected households need income restoration. Of the total displaced business premises partially displaced DPs are willing to readjust their structures to continue businesses in the same location. Because of the urban and semi-urban nature, there are limited agricultural activities in-between the township areas. However, there are 695 Perches of agriculture plots owned by 144 operators. These are mainly home gardens, vegetable plots (Koratu) paddy plots, and marshy lowland. Even though these lots are termed as agricultural lots, they do not make a significant impact on the DPs income, because of the small size of land that would be acquired from each cultivator. In the home gardens DPs will lose few trees and/or crops like coconut, arecunut, mango, tea, cinnamon, banana and papaya As one may expect, a good variety of business activities are in operation in the road project area, ranging from small grocery shops to large wholesale establishments. There are number of small and medium industries and services of various categories located facing to the road, which are managed either by land owners or by tenants/lessees Income losses that are anticipated as a result of acquisition of properties for the road project include; i) income from standing crops (partial impact), ii) income from affected businesses, iii) income from wage earnings, and iv) income from rent/leases One Hectare is equivalent to perches. 2. Income Restoration Programmes 141. After gathering required information by the process of appraisal, income restoration plan will be prepared during the project implementation period. Several activities are planned to be carried out with the target groups before income restoration plan (IRP) is implemented. Most of the DPs would suffer only temporary losses of businesses. The IRP strategy would be based on multiple approaches as described below:

73 61 Empowerment of Displaced Persons 142. By increasing the awareness through popular participation, development of vocational, managerial and entrepreneurial skills, promoting leadership qualities, formation of societies by members to address common issues, training in Human Resources Development, conducting regular meetings with members of target groups by project and local authorities, introducing micro-finance initiatives for members of target groups, and disseminating feedback information to the PMU facilitating the implementation process. Organization to Implement the Income Restoration Plan 143. Income restoration will be undertaken by the PMU with the assistance of a NGO, if the need arises to obtain their assistance. The PMU will act as a facilitatorcum-coordinator for the DPs to obtain the services and inputs available from the respective state and private institutions for poverty alleviation and entrepreneurial development programmes. Linking with reputed agencies for technology and services transfer under IRP 144. The Resettlement Officer attached to the PMU with the assistance of RA will be in charge of the IRP under the supervision of the Team Leader Resettlement. Where ever possible assistance of local CBOs will be solicited. The institutions that would directly involve in the IRP would be Banks and other financial institutions, Vocational Training Authority, National apprentice and Industrial Training Authority, ITI and Practical Action, and the assistance of the NGOs such as Chamber of Commerce - Galle would be sought, as and when required. These income restoration programmes will be undertaken with the consent of individual DPs and their associations. Selection of categories of DPs entitled to Income Restoration Benefits 145. These include; i) farmers losing agricultural lands, ii) Farmers with less than one acre of residual agricultural land, iii) DPs losing reasonable income from homestead gardens., iv) DPs losing businesses, v) DPs belonging to abject poor category, who need institutional support to improve their income, and vi) Vulnerable categories. Identification of Potential Income Restoration Programmes 146. RDA has conceived resettlement as a development opportunity with full rehabilitation and access to project benefits and accordingly following strategies will be adapted to restore the livelihood and income of the displaced persons. After a SWOT analysis of the project area focusing on DPs a viable livelihood and income restoration plan will be implemented. The project will not differentiate between the title holders and non-title holders when this programme is implemented. Everyone will be afforded an opportunity to improve their living standards. Provisions also have been included in the Entitlement Matrix to assist the farmers, agricultural holders, tenants, business units and others who lose their income as a result of this project.

74 The project involves only primary improvements to existing road, and majority of effects will be strip acquisition from their property frontages. This nature of acquisition is very severe in highly urbanised areas where residential and commercial areas are very close and where there is a little or no room to move back and rebuild on the same plot. In this situation DPs could stand to lose their existing homes and or businesses. Sri Lankan experience is that they prefer to stay close to the roads and remain on lands with reduced standards in order to remain on land with direct road frontages. DPs will be given the option under these conditions to remain on the existing plot if the road widening allows and will not be forced to relocate. All DPs whose livelihoods are displaced under the project will be provided with livelihood restoration measures which will include the following. A livelihood restoration allowance to assist as seed money to re-establish a business Allowance and interventions for poor and vulnerable families Vocational or skilled training and empowering them Project related employment When identifying potential income generating opportunities for needy people, greater emphasis will be paid to raw materials and resources available in the affected area (e.g. Relatively cheap labour, power and communication facilities, training institutes, number of banks, financial institutions and consultancy services, potential of further development of tourism, and the availability of variety of natural (tress & crops) and mineral raw materials (lime stones, granite, kaolin, sand etc). Training in Skills Development 149. At least one person from each fully displaced household will be selected for the development of skills. Adult children of the households losing dwellings and commercial premises will be given priority in the selection of trainees. Training in Entrepreneur Development 150. Entrepreneur development will be provided to selected individuals who are capable of benefiting from such training after an initial screening purpose. The basic requirements would be willingness to commence a business or an industry and the seed money or ability to raise capital. PMU will act as a catalyst and a facilitator to raise the capital and develop business plans of the interested DPs. Employment Opportunities during the Construction Phase 151. It is anticipated that several contractual job opportunities will be available to DPs during the construction phase of the project; these will include; light vehicle drivers, heavy vehicle drivers, masons, carpenters, welders, and bartenders, computer operators, clerks, office aids and labourers; PMU will liaise with the contractor to find employment opportunities in the construction related activities, giving top priority to DP households.

75 63 Adopting Interim Measures 152. Compensation for the loss of income due to acquisition of properties or employment will be paid as listed in the entitlement matrix.

76 64 CHAPTER 10 RESETTLEMENT BUDGET 1. Total Cost for Land Acquisition and Resettlement 153. The present RP has worked out a preliminary cost estimates for compensation, rehabilitation and other restoration/assistance entitlements of DPs for the losses, which include land, houses and other assets Total cost of land acquisition and resettlement will be in the region of Rs million. This sum includes provisions for income restoration including training and contingencies. Table 31 Estimated Cost of Land Acquisition and Resettlement of Road Project B153 Item No Item No Unit RS/Unit Total (RS) Total US$ Compensation for Lands Agricultural Land 1124 Perch 6,109 6,866,304 59,707 Residential Land 2088 Perch 61, ,551,637 1,109,145 Commercial Land 734 Perch 81,451 59,784, ,867 Incentive Allowance 5% of statutory valuation 5,826,076 50,662 Compensation for Structures Permanent Shop Class -1 46,761 Sq.ft 1,425 66,652, ,586 House Class ,751 Sq.ft 1,833 93,008, ,767 House / Shop Class-2 26,689 Sq.ft 1,629 43,476, ,058 Semi-Permanent Secondarywalls/gates:Class 3 Secondary Structures: Class3 Temporary Class 4 Other Structures: Class 4 40,569 Sq.ft ,565, ,568 17,332 Sq.ft 285 4,940,997 42,965 4,274 Sq.ft ,263 7,568 14,984 Sq.ft 204 3,051,114 26,531 Incentive Allowance 25% of statutory valuation 27,945, ,006

77 65 Item No Item No Unit RS/Unit Total (RS) Total US$ Compensation for Loss of Income Business Income 148 Nos 50,000 7,400,020 64,348 Agricultural Income Loss of Wage / Salary Trees Fruit Trees / Timber 12 Nos 15, ,090 1, Nos 30,000 10,259,955 89,217 5,645 Trees 5,500 31,047, ,978 Allowances External Monitoring Shifting Allowance Relocation Allowance / rent Vocational Training Grant Special Grant for VP 114 HH 7, ,025 7, HH 50,000 5,699,975 49, DP 10, ,045 6, X 6 DP 15,000 8,100,025 70, Month 250,000 4,499,950 39,130 Sub Total 520,361,991 4,524,887 Administrative Cost 0.5% 2,601,810 22,624 Contingencies 10% 52,036, ,489 Total 575,000,000 5,000,000 Source: Secondary Data of NHSP and Field level Consultations with relevant authorities This is an approximate budget based on the feasibility study it will be updated after the detail engineering designs are completed. + As trees are of varying ages, an average rate was taken for budgeting purpose Conversion of currency is based on Rs.115 = U.S. Dollar = Average. Note:-The entitlement matrix allows the compensation of loss of income for commercial enterprises at the rate of 06 months net income or Rs.15, whichever is higher, on this basis an estimate of Rs 50, per house hold was taken as budgetary provision for this budget line. # In the absence of valuation report, 60 % of the estimate for lands and 50% of the estimate for buildings were taken to calculate the incentives at 5 % for lands & 25 % for buildings Note: - I Hectare is equivalent to perches 1 Acre is equivalent to 160 Perches

78 66 2. Rates Used in the Preparation of the Resettlement Budget 155. The attempts were made to ensure consistency in the preparation of rates by earlier RP with similar background and taking into considerations the current values of the land, structures and businesses. The rates used in the preparation of the present resettlement budget were derived mainly from (i) the rates used in paying compensation of DPs of STDP, (ii) suggestions surfaced at the interviews with different stakeholders, (iii) the rates paid for the DPs of the adjoining projects of the RDA, and (iv) discussion with valuation officers, property developers, and public advertisements by prospective sellers. Their general view was that during the past 3 4 years drastic changes have not taken place with regard to the property and land prices and 5 10% increase may be reasonable. Hence 10% increase for previous rates for land and properties was incorporated into the budget. Table 33 shows the approximate rates worked out in this manner. Table 32 Rates for Land and Structures used in cost estimates Item Unit Ave. Rate (Rs / Unit) Residential land - Rural Perch 50,000 Wall (brick or concrete) Item Unit Ave. Rate (Rs / Unit) Sq. ft 200 Residential land - Urban Commercial Land- Rural Perch 75,000 Fence (wood or sheet) Sq. ft 100 Perch 75,000 Well (Departmenth) Feet 1,300 Commercial Land- Urban Perch 100,000 Other secondary structure Sq. ft 300 Public land Perch 75,000 Power/telephone line Post 15,000 Class 1 structure Sq. ft 3,000 Water supply pipe Post 15,000 Class 2 structure Sq. ft 2,500 Fruit tree Tree (5 yrs+) Class 3 structure Sq. ft 750 Timber tree Tree (10 yrs+ 2,500 5,000 Class 4 structure (Temp) Sq. ft 250 Small workshop Sq. ft 750 Source: Field Survey by Consultants, November As the road project area traverses through three DS divisions of Baddegama, Gonapinuwala and Hikkaduwa, land values of those townships and adjoining urbanised rural areas were taken for making average land values for the RP, which are given in Table 34.

79 67 Table 33 approximate Land Values in Road Project Areas Location Commercial Land (Rs) Residential Land (Rs) Minimum / Perch Maximum / Perch Minimum / Perch Maximum / Perch Baddegama Township 75, ,000 50,000 75,000 Baddegama Rural 50,000 75,000 30,000 50,000 Gonapinuwala Township 100, ,000 75, ,000 Gonapinuwala Rural 75, ,000 50,000 75,000 Hikkaduwa Township 125, , , ,000 Hikkaduwa Rural 100, , , ,000 Source: Field Survey by Consultants, November 2007 Table 34 Value of structures according to type of structure Type of House Structure Class 1 Construction Materials Roof Wall Floor Latrine Tiles/ Asbestos Brick / Concrete Tile/ Terrazzo Attached/commode /water-sealed Ave. Value (Rs/Sq.ft) 3,000 Class 2 Tile Brick Cement water-sealed 2,500 Class 3 Metal Sheet Brick Clay/ mud water-sealed 750 Class 4 Thatch Clay/ mud Clay/ mud None 250 Source: Field Survey by Consultants, November Assistance to Vulnerable Groups and other Special Groups 157. The vulnerable groups of families, who are women-headed families and families with disabled and old-aged people will be granted with a special package of assistance. This package includes a humanitarian allowance of Rs. 15,000 for six months during which they could adjust to the new environments with decent livelihoods.

80 68 CHAPTER 11 IMPLEMENTATION SCHEDULE 158. A time bound implementation plan is envisaged to be implemented for each activity barring a force majure. Resettlement activities will commence from 1 March 2011 with the recruitment of Team Leader / Consultants, Resettlement Assistants and supporting staff. The resettlement plan will be implemented during a period of one and half years from March Table 35 Implementation Schedule Major Events Activities Recruitment of resettlement staff. an initial training Conduct of Census & SES and input of data &analysis Preparation of RP and submission to M/L&ADB for approval Time after Commencement Month 1 Month 2-3 Month 4 Responsibility M/OH, PMU/RDA, PMU, LARD/ESD PMU, M/OL,ESD,JBIC Land Acquisition -Process Month 1-11 PMU,DS,SD,VD,GP,RDA, M/OH,M/L Payment of Compensation Month 6-10 PMU, S,SD,VD,M/OH, CSC, NGO Relocate houses, shops, businesses Month PMU, LARD/ESD,, CSC, NGO Clear the ROW Month PMU, CSC Issue notice for commencement of civil workers Month PMU and,m/oh,jbic Income Restoration Month PMU, LARD/ESD,, CSC, NGO Management Information System Month 1- ongoing PMU,LARD/ESD, CSC,, NGO Grievance Redressing Month 5 - ongoing GRC, Samatha Mandala, Other state institutions Verification of monitoring information by external expert Month 6 24 External monitor, PMU, ARD/ESD&JBIC

81 69 CHAPTER 12 INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT 159. Ministry of Ports and Highways is administratively responsible for the implementation of the project through the RDA. Accordingly RDA has for this purpose established a PMU to implement and monitor day to day activities of the road project. The PMU has a certain degree of financial autonomy and administrative flexibility subject to general guidelines issued by the Management Services Division of the Treasury and the Ministry of Ports and Highways through RDA Implementation of a project to open up a new road or improve and widened an existing road involve number of legal and social functions in addition to the construction programme The following state agencies are directly involved in the activities of the project in addition to the PMU: a. Ministry of Ports and Highways b. Ministry of Land and Land Development c. Divisional Secretary and his Grama Niladaris d. Survey Department e. Valuation Department f. Government Printer g. Central Environmental Authority h. Urban Council Kalutara i. Ceylon Electricity Board j. Water Supply and Drainage Board k. Sri Lanka Telecom Ltd Contractors and Consultants employed by the PMU, Community Based Organizations of DPs, NGOs and other Civic Organizations also play a significant role in the implementation process of the road project. 1. Project Management Unit 163. The Project management unit is headed by the Project Director assisted by engineers and two consultants on land acquisition and resettlement and the supporting staff on administrative and financial matters PMU performs the following major activities: Conduct awareness meetings with stake holders to disseminate information in respect of the project and act on the feedback received after such meetings Distribute informative bulletins to ensure transparency Conduct land acquisition and SES to collect necessary data for the preparation of resettlement plan. Coordinate the land acquisition process with the DS and the relevant government agencies

82 70 Prepare resettlement plan and implement them to restore the lives of the Displaced persons at least to the pre project level, after obtaining the approval of the Ministry of Land and Land Development and ADB. Execute a reasonable compensation package to realize the objectives of the NIRP. Coordinate with related state agencies to restore/improve the income of the DPs. Coordinate with the community based organizations to assist the DPs in resettlement activities. Identify resettlement sites in consultation with the DPs and host communities. Assist DPs on resettlement in new sites selected by them. Expedite the payment of compensation by assisting the DS and other relevant parties. Coordinate the activities of GRCs. Assist the vulnerable. Monitor the resettlement plan with identifiable indicators. Develop a plan to address gender concerns. Implement the construction programme through contractors and supervision consultants. Monitor the construction programme. Submit periodical reports to the relevant state agencies and ADB. Ensure flow of funds to maintain a healthy cash flow. 2. ESD and Land Division 165. ESD and Land Division are responsible for policy issues and provision of guide lines on land acquisition and resettlement to the PMUs. The ESD assists the PMU in conducting the land acquisition and SES surveys, training enumerators and data analysts, reviewing RPs before they are submitted to the ADB. 3. Divisional Secretariat 166. The DS is responsible for the acquisition of land. He is the officer legally empowered to acquire land and vest the same with the RDA to commence construction work. Even though legally acquisition of land is the function of the DS, the PMU get involved actively to (i) coordinate the various activities leading to the taking over of vacant possession from the owners of the properties; (ii) prepare proposals for the signature of the Honorable Minister of Land, as well as notices to be published by the

83 71 DSs for the information of the public; (iii) prepare and publish orders in the government gazette; (iv) assist DS to get the relevant plans prepared by the Survey Department; (v) coordinate with the Valuation Department to get the valuation process expedited; and (vi) provide logistic support to the DSs. These are mainly the functions performed by the PMU to buttress the efforts of the DS to accelerate the complex process of land acquisition. Field Office of the PMU 167. A sub-office will be established to facilitate the land acquisition and resettlement programme inclusive of income restoration activity. The sub office will be located within the project area. A Resettlement Assistant will be stationed at this office with supportive staff to coordinate day to day activities of the land acquisition and resettlement programme including income restoration portfolio. 4. Construction Supervision Consultants (CSC) 168. Main function of the construction supervision consultant is to monitor, supervise and guide the construction programme; Responsibility of RDA on Payment of Compensation a. Advise the DPs regarding the list of documents to be submitted at the title determination inquiries conducted under Sec.09 of the LAA. b. Ensure timely cash flows to assist DSS to pay the statutory payments as they are due. c. Prepare individual cheques and hand them over to DS to effect payments d. Assist DS to inform the DPs in advance regarding the payment of compensation e. Prepare the list of DPs with categories of compensation they are entitled to f. Document grievances if any made by the DP g. Make arrangement to pay the interest due on the statutory payment through the DS. h. Arrange to distribute a certificate with details of the compensation paid to each DP. i. Allow a period of 4-6 weeks after the payment of statutory compensation and other assistance for the DP to hand over vacant possession of the property. j. PMU should pay the incentive payment due to the DP immediately after the DP handover the vacant possession within the prescribed period to the DS/PMU. k. Store all data in respect of compensation in a pre-prepared data base. l. Maintain a file for each DP, this file should contain, data on each DP collected at land acquisition and SES survey and the details of payments made and other correspondence with the DPs

84 72 Responsibilities of DPs during compensation payment 169. Produce all relevant documents at the Sec 9 inquiries to establish the rights and ownership of the DP, including title deeds, government grant certificates, lease permits, rental agreements, documents on tenancy rights, registration extracts etc., which are relevant to each DP Ensure DP present personally to receive compensation as far as possible, if due to an unavoidable reason if DP is unable to collect the payment cheque personally, a proxy could collect the payment upon authorization by the DP in writing certified by the GN of the area, on the alternative he/her could request for another date to accept the payment. (Statutory payment from the DS) 171. It is the responsibility of the DP to raise objections if any within 21 days of the issue of Sec 10(1) notice to confirm to provisions of the LAA. If no objections are raised order under Sec17 will be issued by the DS conveying the quantum of statutory compensation due to he/her for the property acquired for the particular public purpose DP should hand over the vacant possession of the property within the prescribed period in order to qualify for the incentive payment. 5. Institutional Arrangement to Attend to Gender Concerns 173. PMU will recruit one female resettlement officer and five female resettlement assistants to attend to the gender concerns of the resettlement programme, in addition to the four consultants/ team leaders, employed by the PMU. One of the consultants/team leaders will be directly in charge of the road project with inputs from other consultants/team leaders as the needs arise. One female resettlement assistant, a graduate with a degree in Sociology will be stationed at the project to attend to resettlement matters including gender concerns. She will be assisted by a female clerk. This arrangement will permit a closer interface by the resettlement staff with the Displaced female DPs. Table 36 Matrix of Roles and Responsibilities of Government Agencies and Other Organizations involved in Resettlement Planning and Implementation Agency / Unit RDA / PMU Ministry of Ports and Highways and Road Development Ministry of Land Roles and Responsibilities Preparation of land acquisition proposals, staffing, coordination with other relevant agencies, consultation with stake holders, dissemination of information, secure funds Lands for resettlement, lands for resettlement, develop infrastructure at resettlement sites, arrange IRP, and internal monitoring Submit proposals forwarded by the PMU to MOL,arrange for funds, Approval for the publications of relevant orders under LAA, approval

85 73 Agency / Unit and Land Development of RP Roles and Responsibilities Divisional Secretary Grama Niladhari Valuation Department Government Printer Local Authority NGO Displaced persons Construction Supervision Consultants Acquisition of lands, payment of statutory compensation, payment interest, consultation, information dissemination, GRC, and vestin acquired land with the RDA Delivery of notices under LAA to the DPP, consultation, facilitate acquisition of alternate lands, preparation of advance tracing and final plan by assisting the surveyors to identify the claimants, Preparation of condition reports of the properties to be acquired, preparation of valuation reports, Publication of gazette notifications relevant to land acquisition Approval of resettlement sites, housing plans Consultations, dissemination of information, assist DPs at title determination inquiries, (Sec9). GRC, secure alternate lands, GRC, external monitoring Help in planning of resettlement site development, IRP, Monitoring Planning, monitoring construction and resettlements

86 74 CHAPTER 13 MONITORING AND EVALUATION 174. Resettlement Monitoring means the collection, analysis, reporting and use of information on the progress of resettlement, based on the RP. Monitoring focuses on physical and financial targets and the delivery of entitlements to persons displaced. Monitoring is usually conducted internally by the executing agency, sometimes with the assistance from external monitoring specialists. It is a requirement to submit monitoring reports to ADB. Aims and Objectives 175. Monitoring will be done by the PMU in relation to the activities detailed out in the RP and against the time frame indicated against each activity. In addition to recording the progress in compensation payment and other resettlement activity the EA will prepare monitoring report to ensure the implementation of the RP has produce desired outcome. Information gathered from the monitoring exercise will be subjected to review by the PMU and other relevant stake holders, take effective remedial measures to mitigate or solve the problems that need institutional interventions. Method and approach to provide the Information 176. The collection of base line data for each indicator identified to measure the benefits for the target groups that will be displaced by the project. Monitoring during project implementation particularly to inform the management about progress any discrepancies in the delivery, use, and immediate effects of these services. Feedback to management and actions taken to mitigate unexpected impacts. Management is required act upon the information and, together with affected communities or target groups, design and implement solutions to reduce the discrepancies. Detailed Methodology 177. Field level monitoring will be done by the unit office of the PMU with the assistance of the DPs, GNs CBOs. The mechanisms to be used in field level monitoring include (i) review of files, (ii) informal sample survey of DPs, (iii) key informant interviews, (iv) in-department case studies, and (v) community public meetings Key Indicators for Monitoring 178. The following set of key indicators will be used to conduct the monitoring: a. Comparison of pre / post socio economic status b. restoration of income earning capacity c. development of kinship ties d. integration with the host villagers e. access to education, water supply, and sanitation etc.

87 75 Reporting Requirements 179. Unit Office of the PMU will submit monthly progress reports on the following activities to the PMU. PMU will submit a consolidate progress report of all road projects to ESD, Steering Committee and Project Coordinating Committee monthly. Number of DPs category wise Land acquisition with details of the stage of the process for e.g number of Sec2 notices issued. Number of DP prepared number of Sec 38 (a) issued etc. Number of DPs paid with statutory compensation Number of Buildings taken over by PMU Number of DPs resettled at RDA site Number of self-relocated people Number of vulnerable people Assisted by the PMU Number of gender issues reported by the DPs Number of gender issues solved Number of DPs need income and livelihood restoration assistance Number of DPs assisted under IRP Number of GRC meetings held Number of complaints received by the GRC Number of grievances solved by the GRC Provide guide lines for future resettlement policy making and planning from the lessons learned The information gathered and reports prepared by the PMU will be verified by an experienced and qualified external expert employed by the PMU. The Terms of Reference of the External Expert (Monitor) is given in the Annexure External expert will commence after the commencement of the resettlement programme. External expert will prepare semi-annual verification and monitoring reports that describe the progress of implementation of resettlement activities and any compliance issues and corrective actions. Reports will be submitted to ADB on semiannual basis. Schedule of Reporting to ADB First Report: 31 December 2011 Second Report: 30 June 2012 Final Report : 31 December 2012

88 Output Process Indicator 76 Computerized Management Information System (MIS) 182 All information regarding loss of assets (inventory of losses) of individual DPs, and socioeconomic information will be stored in a data base maintained by the PMU. Soft copies of such data will be given to ESD for them to maintain a centralized data base for all highway projects. A Database Manager will be recruited to store and maintain the database. 183 MIS will include the following data Information of all losses suffered by individual DPs, the data will include the extent of land acquired, area of structures lost, number and type of trees lost, compensation paid according to category of losses, other entitlement MIS should be capable of generating monthly, quarterly and annual reports required for the management and the ADB Table 37 Monitoring and Evaluation Indicators Type Indicator Examples of Variables Staffing Consultation Participation Grievance Resolution Acquisition of Land Structures No.of RDA staff employed functional wise No. of surveyors & valuation officers available for Training programmes held for the project staff No of unit offices established No of awareness meetings held with the stake holders No of training programmes held for the, officers No of informative bulletins distributed No of GRC established No of complaints received and resolved Type and extent of private land acquired Type and extent of state land acquired No. type and area of private structures acquired Trees & Crops No. type and area of state structures acquired No. type and area of community structures acquired No and type of trees owned by private people acquired

89 Impact indicator 77 Type Indicator Examples of Variables No and type of trees owned by state agencies Acquired Compensation & Rehabilitation No of households Displaced according to type of losses Ag.paid for a perch of land Ag. paid for a sq.ft of buildings Type,number and total of allowances paid No. of resettlement sites developed No of houses constructed by DPs at resettlement sites No of DPs constructed houses by themselves Household Earning Capacity No. of DPs loss employment No of DPs suffered loss of income from (a) agriculture (b) Business (c) No obtained loans from bank and other sources (d) No. assisted by IRP (e) No. employed by the project Changes to Status of Women Participation in Community Based activities Loss of employment Aggravation /facilitation of gender issues Participation in project activities Changes to status of Children Changes in school attendance by gender wise Employment in road project No attending new schools, gender wise Settlement & Population Generation of new businesses,influx of population Outsiders buying land in the near vicinity of the road project, increase in encroachers /squatters in state lands

90 78 Annex 1: National Involuntary Resettlement Policy (Approved by Cabinet Members of GOSL on ) Rationale 1. Public and private sector development projects increasingly involve acquisition of land. People whose homes and lands are acquired then have to move elsewhere and resettle in locations that may be unfamiliar. In general resettlement has not been very successful and there are several recent examples in Sri Lanka where people have shown resistance to project that cause displacement. Among the significant consequences of resettlement has been impoverishment of displaced persons due to landlessness, homelessness, joblessness, relatively higher morbidity, food insecurity, lack of access to common property and public services, and disruption of the existing social organization. International, regional and national experience with resettlement has generated considerable knowledge on the planning and implementation of involuntary resettlement and this experience if used effectively can ensure that adverse impacts of displaced persons are fully addressed in terms to established policy objectives. 2. In Sri Lanka the Land Acquisition Act of 1950 as amended from time to time only provides for compensation for land, structures trees and crops. It does not require project executing (PEAs) to address key resettlement issues such as (a) exploring alternative project options that avoid or minimize impacts on people; (b) compensating those who do not have title to land; (c) consulting displaced persons and hosts on resettlement option; (d) providing for successful social and economic integration of the displaced persons and their hosts; and (e) full social and economic rehabilitation of the effected persons. 3. The National Environmental Act (NEA), No.47 of 1980, amended by Act No.56 of 1988, has some provisions relevant to involuntary settlement. The Minister has by gazette notification No.859/14 of 23 February 1995 determined the projects and undertaking for which Central Environmental Authority (CEA) approval in needed in terms of part IV C of the NEA. The schedule includes item 12, which refer to Involuntary Resettlement Exceeding 100 families, other than resettlement resulting from emergency situations. However, these provisions do not adequately address key resettlement issues mentioned in paragraph 2 above. 4. To ensure that persons displaced by development projects are treated in a fair and equitable manner, and that they are not impoverished in the process, it is necessary that Sri Lanka adopts a National Involuntary Resettlement Policy (NIRP). Such a policy wood establishes the framework for project planning and implementation. Subsequently, it will be necessary to prepare guidelines on resettlement planning and implementation to be used by PEAs.

91 79 5. People have moved voluntarily, mainly to the dry zone, starting from colonial days. These were state sponsored settlement programs aimed at developing and exploiting land resources in that region, while relieving on land in the wet zone. There are many commonalties in the objectives and implementation of voluntary and involuntary settlement and resettlement programs. 6. Nonetheless, the policy proposed here refers only to development-induced involuntary resettlement, where the option to stay behind does not exist. It does, however, also apply to cases where people do not have to be physically relocated. Objectives of the Policy Avoid, minimize and mitigate negative impacts of involuntary resettlement by facilitating the reestablishment of the displaced persons on a productive and self-sustaining basis. The policy should also facilitate the development of the project-displaced persons and the project. Ensure that persons adversely displaced by development projects are fully and promptly compensated and successfully resettled. The livelihoods of the displaced persons should be re-established and the standard of living proved. Ensure that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purpose by the state. Assets adversely displaced persons in dealing with psychological, cultural, social and other stresses caused by compulsory land acquisition. Make all displaced persons aware of processes available for the redress of grievances that are easily accessible and immediately responsive. Have in a place consultative, transparent and accountable involuntary resettlement process with a time frame agreed to by the PEA and the displaced persons. Scope The policy will apply to all development-induced land acquisition or recovery of possession by the state. A comprehensive resettlement plan will be required where 20 or more families are displaced. If less than 20 families are displaced the policy still applies but a plan can be prepared to a lesser level of detail. The policy will apply to all projects regardless of source of funding. The policy will apply to all projects in the planning phase on the date this policy comes in to effect, and all future projects Policy Principles Involuntary resettlement should be avoided or reduced as much as possible by reviewing to the projects as well as alternatives within the project.

92 80 Where involuntary resettlement is unavoidable, displaced persons should be assisted to re-established themselves and improve their quality of life. Gender equality and equity should be ensure and adhered to throughout the policy. Displaced persons should be fully involved in the selections of relocation sites, livelihood compensation and development options at the earliest opportunity. Replacement land should be an option for compensation in the case of loss of land; in the absence of replacement land cash compensation should be an option for all displaced persons Compensation for loss of land, structures, other assets and income should be based on full replacement cost and should be paid promptly. This should include transaction costs. Resettlement should be plans and implemented with full participation of the provincial and local authorities. To assist those affected to be economically and socially integrated in to the host communities; participatory measures should be designed and implemented. Common property resources and community and public services should be provided to displaced persons. Resettlement should be planned as a development activity for the displaced persons. Displaced persons who do not have documented title to land should receive fair and just treatment Vulnerable groups should be identified and given appropriate assistance to substantially improve their living standards PEAs should bear the full costs of compensation and resettlement. Institutional Responsibilities The Ministry of Land and Land Development (MLD) will be responsible for the implementation of the NIRP PEAs will be responsible for complying with all the requirements for planning and implementing resettlement according to the NIRP. PEAs (like the Road Development Authority) that have significant resettlement in their projects will establish resettlement units with adequately trained staff CEA will be responsible for the review of impacts and mitigating measures of projects involving involuntary resettlement. CEAs capacity will be strengthened so that it could provide necessary guidance to public and private sector agencies undertaking projects that have involuntary resettlement impacts. MLD will prepare regulation and guidelines on involuntary resettlement planning, implementation and monitoring. MLD and CEA will conduct training courses in resettlement planning, implementation monitoring. CEA will review and approve the resettlement plans prepared by PEAs, and make plans publicly available.

93 81 MLD will draft amendment to the Land Acquisition Act in order to bring the law in line with the NIRP Following consultation with stakeholders, MLD will submit a final draft of the amended Land Acquisition Act for government approval. MLD will prepare the necessary implementation guidelines based on the amended LAA. A steering committee will be formed comprising MLD, CEA, PEAs and other relevant agencies to exchange experience on resettlement, and coordinate and oversee the implementation of the policy. Monitoring and Evaluation A system of internal monitoring should be established by PEAs to monitor implementation of resettlement plans, including budget, schedule, and delivery of entitlements, consultation, grievances and benefits. PEAs should make adequate resources available for monitoring and evaluation. A further system of external monitoring and evaluation by an independent party should be established to assess the overall outcome of resettlement activities. Monitoring and evaluation reports should be review by the PEA, CEA, and MLD and action taken to make improvements where indicated. Displaced persons and other stakeholders should be consulted in monitoring and evaluation. Lessons thus learned from resettlement experiences should be used to improve resettlement experiences should be used to improve resettlement policy and practice. Summary of Institutional Responsibilities for Involuntary Resettlement Function Overall Implementation Policy Responsibilities Ministry of Land and Land Development (MLD) Preparation (Planning) Review of Resettlement Plans (RPs) Approval of RPs Implementation Monitoring Evaluation Project proponent (Can be contracted to consultants, universities, non-government organizations) Project approving agency (PAA) and Central Environmental Authority (CEA) PAA and CEA Project executing agency (PEA), divisional administration, provincial PEA, with review by CEA and MLD Independent organization on behalf of MLD, PEA, and CEA

94 82 7. Definitions of Terms Used Displaced Person Compensation Emergency Situation Expropriation Entitlements Gender Equity Host population Income restoration - Person displaced by changes to use of land, water or other resources caused by development projects - cash or payment in kind made to displaced persons to replace assets, resources or income - natural disasters, civil and political conflict situations - government taking possession of property or changing property rights in order to execute or facilitate development projects - a variety of measures including compensation, income restoration and interim support, transfer assistance, relocation and other benefits that are due to displaced persons, depending on the nature of their losses, to improve their economic and social base - Recognition of both genders in the provision of entitlements, treatment and other measurement under the resettlement plan - households and communities residing in or near the area to which displaced persons are to be relocated - re-establishing income sources and livelihoods of persons displaced Involuntary resettlement Rehabilitation - unavoidable displacement of people arising from development projects that creates the need for rebuilding their livelihoods, incomes and asset bases in another location - re-establishing and improving incomes, livelihood, living, and social systems Relocation Replacement cost Resettlement plan Resettlement budget - moving displaced persons and their moveable assets and rebuilding housing, structures, improvements, to land, and public infrastructure in another location - the level of valuation for expropriated property sufficient to actually replace lost assets, or to acquire substitutes of equal value or comparable productivity or use; transaction costs are to be included - a time-bound action plan with budget setting out resettlement strategy, objectives, options, entitlement, actions, approvals, responsibilities, monitoring and evaluation. - a detailed breakdown of all the costs of a resettlement plan phased over the implementation period

95 83 Resettlement effects Settlement Social preparation Vulnerable groups - loss of physical and non-physical assets including homes, communities, productive land, income earning assets and sources, subsistence, cultural sites, social structures, networks and ties, cultural identity and mutual help mechanisms. - voluntary movement of people to a new site where they reestablish their livelihoods as in the case of the Mahaweli Scheme - process of consultation with displaced persons undertaken before key resettlement decisions are made; measures to build their capacity to deal with resettlement, taking into account existing and cultural institutions - distinct groups of people who might suffer disproportionately from resettlement effects such as the old, the young, the handicapped, the poor, isolated group and single parent households

96 84 Annex 2: The personnel met during the field visit 1. G.S.P. Gunadasa (Informal sector selling unit UC Land) Egodagoda, Hikkaduwa 2. D.M. Richard Mendis, ( , Three wheel driver) Hikkaduwa, 3. N. Sampath (QC Three wheel driver) 4. K.I. De Silva, Nalagasdeniya, Hikkaduwa 5. T. Thilakaratna Paragahawatha, Thelwatha, Hikkaduwa 6. S. Thotawatha, Arachchikanda, Hikkaduwa 7. D.P. Narendra, Nalagasdeniya, Hikkaduwa 8. M.D.H. Hemantha Nalagasdeniya, Hikkaduwa 9. K.P.S.Udayakumara Galendawatha, Hikkaduwa 10. M.W.A. Dancon, Korallagoda, Kalupe, Hikkaduwa 11. Mrs. Chandralatha Gallage, Ayurvedic Doctor, Baddegama Road, Hikkaduwa 12. Mr. U.H. Kulathunga, (Businessman) Baddegama Road, Hikkaduwa. 13. Mrs. Achala Udayangani, (Teacher) Baddegama Road, Hikkaduwa 14. Mrs. Jayantha Neelamani, (Teacher) Baddegama Road, Hikkaduwa Expects compensation to start his selling outlet in a suitable similar location They like this proposed widening as presently lot of delays in hires. This is a pressure group using this road B153. All are members of the Lorry and Van Transport Service Society. Had a discussion with them who fully supported this road widening proposal. They explained the impact they undergo due to heavy traffic on the road. Generally all agreed that this project will generate positive impacts for the economic development and easy mobility of the area in spite of difficulties they may have to undergo.

97 15. People of the Area Damma Jagoda statue which needs shifting 85

98 86 Annex 3: TOR for the External Monitoring and Reporting Expert/ Agency Introduction 1. Land acquisition and resettlement process will be monitored both internally by RDA through PMU, ESD, CSC and with the assistance of NGOs and externally by an independent agency with the objective of obtaining feedback to the management. This will facilitate the management to identify problems in the implementation and successes as early as possible and to take timely adjustments to the implementation arrangements. 2. RDA / PMU with the approval of the ADB will appoint an experienced and qualified monitoring expert/agency for the entire road project to carryout verification and monitoring. Objectives of the External Expert 1. Monitoring to verify that resettlement has been implemented in accordance with the approved resettlement plan. 2. Monitoring to ensure that DPs have been able to at least restore their livelihoods and living standards 3. Conduct periodical social audits of land acquisition and resettlement activities. The key tasks of the External Expert on Verification Monitoring And Reporting Review and verification of monitoring reports prepared by the project. 1. Review and examine the socioeconomic baseline census and detailed measurement survey information of DPs to be relocated. 2. Identify and select impact indicators. 3. Assessment of impacts through formal and informal surveys with the displaced persons. 4. Consultation with DPs, Officials, Community Leaders for preparing review reports. 5. Assess the resettlement efficiency, effectiveness impact and sustainability; drawing lessens for future resettlement policy formulation and planning. 6. Review the functioning and efficiency of the Management Information System 7. Assessment of DPs satisfaction on the valuation of assets and entitlements, timing of payments, fund availability and disbursements. 8. Advice EA on safeguard compliance issues. 9. The agency will carry out a baseline survey of the road project, prior to implementation of the resettlement plan enabling to collect adequate pre project data for monitoring. The outcome of the external experts reports will be

99 communicated to PMU and ESD through a meeting and necessary remedial actions need to be taken will be documented. These external experts monitoring reports will be submitted to the ADB by the PMU, for their information and feedback for any improvements or remedial action. Reporting Schedule of External Expert to Project Executing Agency First Report: On or before 30 November 2011 Second Report: On or before 31 May 2012 Final Report : On or before 30 November 2012

100 88 Annex 4: Census Survey Questionnaire In order to collect information and data for the preparation of the Resettlement Plans, the consultants in 2007 have used the attached questionnaire. Obtaining socio economic data and assessment of land acquisition impacts were assessed on the basis of the information derived out of these questionnaire.

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