Highlands Region Road Improvement Investment Program Tranche 2.

Transcription

1 Social Monitoring Report Semi-annual Report March 2018 Highlands Region Road Improvement Investment Program Tranche 2. Kotna Lampramp Road Sub-project. Prepared by Department of Works for the Asian Development Bank. This Semi-annual Social Monitoring Report 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. Your attention is directed to the terms of use section of this website. 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. Page 1 of 38

2 SEMI-ANNUAL SOCIAL SAFEGUARDS MONITORING REPORT PNG: HIGHLANDS REGION ROAD IMPROVEMENT INVESTMENT PROGRAM (TRANCHE 2) Kotna-Lampramp Road Sub-Project July December 2017 Prepared by: Highlands Road Management Group (HRMG), Department of Works for the Asian Development Bank March 2018 Page 2 of 38

3 FACT SHEET: Loan 3076/3077 PNG Project Number Subproject Kotna-Lampramp Road Road Length km Contract Amount K87,095, Improvement Works K79,092, Long Term Maintenance K8,003, Commencement Date February 1, 2016 Completion Date 24 Months (February 1, 2018) Executing Agency The Department of Works (DOW) is the executing agency for the Highlands Region Road Improvement Investment Program (HRRIIP). It has overall responsibility to manage the planning, implementation and monitoring for all road improvement works including acquiring use rights for additional land to implement HRRIIP subprojects, as well as compensation for damages on project-affected land DOW is also responsible for reporting to ADB and the recruitment of the organization to conduct independent monitoring Implementing Agency/Unit The DOW will also be the Implementing Agency for the road improvement works. The DOW has delegated to the Highlands Road Management Group (HRMG), the responsibility to carry out the planning, implementation and monitoring for land acquisition and/or resettlement activities, as required. The more relevant delegated responsibilities include the following; 1. Review and endorse the draft RP as prepared by its consultant prior to submitting it to DOW and, subsequently, to ADB for approval; 2. Monitor the process of allocation and disbursal of funds for compensation and ensure that funds are available, and compensation is paid in a timely manner; 3. Coordinate and carry out consultations with affected communities to ensure that all stakeholders are informed in a timely manner about its policies and procedures; ensure that all public disclosure of the provisions for land acquisition and compensation are carried out; and, oversee and monitor the grievance redress process; 4. Carry out all other activities related to internal monitoring of land acquisition activities and collaborate with and support the work of the independent monitoring organization; 5. Coordinate with civil works contractors to ensure that required land is cleared in a timely manner, that unforeseen damages and losses are recorded, and compensation paid and that all other steps and measures are taken to complete the civil works in an efficient manner. Coverage of the Social Safeguards Monitoring Report # 4 The NRA will be the Implementing Agency for road maintenance. This will include all road maintenance works contracted directly by the NRA or transferred from the DOW. A project implementation unit will be established in the NRA. July to December 2017 Page 3 of 38

4 Table of Contents ABBREVIATIONS EXECUTIVE SUMMARY INTRODUCTION Project Background Sub-Project Description Institutional Arrangements Purpose & Methodology BACKGROUND OF RESETTLEMENT ACTIVITIES Detailed Design Stage Process of Compensation BUDGET AND TIME FRAME DELIVERY OF COMPENSATION AND ENTITLEMENTS PUBLIC PARTICIPATION AND CONSULTATIONS Public Consultations Grievance Redress Mechanism BENEFIT MONITORING Road Construction Employment Benefits from Quarry Operations Other Local Benefits Summary of Direct Benefits INDIRECT SOCIAL BENEFITS Methodology Road Segmentation Construction of New Structures along the Sub-Project Road Increase of Commercial Activities Power and Water Better Access to Markets Improvement in Health Services Improvement in Educational Facilities and Services Change in Lifestyle REQUIREMENTS FOR REMEDIAL ACTIONS Outstanding Issues from the Previous Reporting Period Recommendations for Corrective Actions Appendix 1: LIST OF REFERENCES Appendix 2: LIST OF PERSONS INTERVIEWED Page 4 of 38

5 Appendix 3: ORGANIZATIONAL CHART (Tranche 2) Appendix 4: ROAD INFLUENCE ZONE MAP Appendix 5: ATTENDANCE SHEET FOCUS GROUP DISCUSSION Appendix 6: PHOTOGRAPHS Table 1: Summary of Affected Assets Table 2: Breakdown of Payment for In-Kind Compensation Table 3: Summary of Monthly Employment by Gender Table 4: Summary of Women s' Participation in Non-Payroll Activities Table 5: Estimated Monthly Income of Women In Non-Payroll Activities Table 6: Summary of Employment by Origin Table 7: Estimated Monthly Wages Paid to Workers from Affected LLGs Table 8: Summary of Quarry Volume & Estimated Value Table 9: Summary of Lease Rental Paid to Customary Land Owners Table 10: Local Purchases of the Contractor Page 5 of 38

6 ABBREVIATIONS ADB BTOR CRO CSC DA DC DMS DP DOW EA EO ESSU FGD GR GRC GRM GRP HCRN HIV HRMG HRRIIP IA IMO IRS KII LLG MFF MOA NRA PNG POM PRO PWM RAP RCR RIZ ROW RP SIS SMR SPS STD SSO TOR WHP Asian Development Bank Back to Office Report Community Relations Officer Construction Supervision Consultant District Administrator Design Consultant Detailed Measurement Survey Displaced Person Department of Work Executive Agency Environmental Officer Environment and Social Safeguards Unit Focus Group Discussion Grievance Redress Grievance Redress Committee Grievance Redress Mechanism Grievance Redress Process Highland Region Core Road Network Human Immunodeficiency Virus Highland Road Management Group Highland Region Road Improvement Investment Program Implementation Agency Independent Monitoring Agency International Resettlement Specialist Key Informant s Interview Local Level Government Multi-tranche Financial Facility Memorandum of Agreement National Road Authority Papua New Guinea Port Moresby Public Relations Officer Provincial Works Manager Resettlement Action Plan Resettlement Completion Report Road Influence Zone Right-of-Way Resettlement Plan Socio-economic Impact Study Semi-annual Monitoring Report Safeguard Policy Statement Sexual Transmitted Diseases Social Safeguards Officer Terms of Reference Western Highlands Province Page 6 of 38

7 1.0 EXECUTIVE SUMMARY 1. This fourth semi-annual social safeguards monitoring report covered the period from July to December This report was carried out by the DOW through the Highlands Road Management Group (HRMG) and the monitoring results will be communicated to ADB through this report. 2. Kotna-Lampramp sub-project road is one of the 3 sub-projects of Tranche 2 of the Highlands Region Roads Improvement Investment Program (HRRIIP), an ADB assisted road program. It is located in Western Highland Province in the districts of Dei and Mul-Baiyer. The Kotna-Lampramp road sub-project officially started on February 1, 2016 and is scheduled to be completed on January 31, The resettlement plan was submitted and approved by ADB in September, There were no affected residential or business structures, fences and graves. The affected crops and trees amounted to Kina 36, In addition, a 19% was added to reflect the market rates of crops and trees based on the 2008 Valuer General s Rates. The adjusted value of the crops and trees amounted to Kina 43, After consultations with the Provincial Governor, district, LLG presidents and ward leaders, the affected wards agreed to adopt a No Compensation Policy for the affected assets in the sub-project. HRMG reminded the local leaders that payment of affected assets is in compliance with the loan agreement signed between the Department of Works and Asian Development Bank. All Council Presidents and Councillors made a commitment and signed on May 16, 2015 an Oath and Affirmation supporting the No Compensation Policy for the Kotna- Lampramp sub-project road. 5. Consultations and meetings with displaced persons and ward leaders were conducted to flesh out the breakdown and details of the in-kind compensation. Two trucks owned by locals from the affected district of Dei and 5 youths also from Dei District were hired to load and deliver the materials to the selected schools and Aid Post. Deliveries of building materials took place on Kotna Section on July 23, 2015 and Lampramp Section on July 24, The whole in-kind compensation was fully delivered to the communities. 6. There were no public consultations conducted along the sub-project from July to December There were no issues and/or concerns raised by the DPs and the affected communities. The Grievance Redress Committee (GRC) has been established but there were no formal grievances filed within the reporting period. 7. Direct Employment For the months of July to December 2017, the Kotna Lampramp subproject was able to generate 1,678 payroll positions with estimated wages of Kina 839, Out of this total, 540 employment payroll positions were filled up by residents of Kotna LLG estimated at Kina 270, For the Lampramp LLG, the project was able to generate 641 payroll positions with an estimated wages equivalent to Kina 320, Overall, the residents of both Kotna and Lampramp LLGs were able to earn 590, or around 70% of the total payroll for the second half of Women s Participation For the second half of 2017, there were a total of 454 female workers directly employed by the contractor classified as payroll activities earning a total of Kina 177, In addition, there were also 449 female workers in non-payroll activities earning a total of Kina 168, for the reporting period. In summary, women earned a total of Kina 345, for the reporting period. 9. Other Benefits The customary land owners earned a total of Kina 74, as royalties from the operations of the quarries for the project. In addition, customary land owners earned a total of Kina 14, for land leases paid for the camp and other facilities including disposal sites. Furthermore, local purchases of the contractor netted the surrounding communities a total Page 7 of 38

8 of Kina 6, In summary the surrounding communities earned a total of Kina 95, from various sources. 10. New Structures -- Along the sub-project, it was observed that there were not less than 34 new residential structures, not less than 12 trade stores and a new school were constructed after the start of the construction period of the subproject last February Accessibility -- Agricultural products are now being sold in Mt. Hagen because PMVs and private vehicles are able to haul fruits and vegetables. There were signs that coffee plantations along the road are being rehabilitated. Coffee bean buyers are seen buying coffee from small landholders. Business persons and students are now able to commute to Mt. Hagen and other built up centers daily. Food supplies and agricultural inputs are now reaching the villages after chainage 8 because of their accessibility brought about by the road project. 12. PMVs and Bus Fare There is an undetermined increase in the number of PMVs plying the subproject road. The bus fare from Tiki Village to Mt Hagen via Kitip junction or Lampramp junction which was formerly 10 Kina is now reduced by 30% with PMVs charging only 7 kina. The bus fare reduction was caused by the following factors; First, the road condition greatly improved, enabling PMVs to travel more trips per day. Previously PMV can only make one round trip per day because of the bad roads. Now, the PMVs make two to three round trips per day. Second, there are more PMVs in this route, creating competition with the existing PMVs. Third, there are more commuters enabling the PMVs to ply their route with greater passenger capacity 13. Health Services -- key informants related that the improved access to Mt. Hagen enabled the patients to be brought to the hospitals. Previously, there were serious medical cases wherein patients died before they reached the hospitals because of the bad road. Family members of less serious patients rode in PMVs and went to Mt. Hagen and bought the medicines in the pharmacies. This positive impact has been observed especially in Area B and interior villages within the road influence zone. 14. Education A new high school (Tiki High School) was built during the construction period of the road. There were 120 high school students enrolled at the start of the school year. Previously, these students, majority of whom are from the neighboring wards and villages were attending school elsewhere. But this arrangement is expensive because students have to commute daily from their homes or to find lodgings hear their schools. Many have to walk daily because bus fares were very expensive because of the bad roads. Some who cannot afford to study because of the expenses in attending other high schools had stopped attending schools. 15. The attendance of students who are from the neighboring wards and villages is high because of the proximity and accessibility of the high school. The travel to and from the school was reduced drastically and this enable the students to help more to the domestic tasks and in the cultivation of food gardens. In addition, the short travelling time enable students to do their assignments and study more in their homes. 16. Lifestyle -- Previously, residents just stared at faces of persons who are not from their respective tribes and clans. They were reluctant to interact and were very reserve with their dealings with persons they are not familiar with. Presently, the residents along the road are more receptive to new faces. They are friendlier and many initiate conversations with them. The construction of the road brought new faces into their communities and the increase in interactions with new faces brought some degree of self-confidence to interact. This change in behavior marked a stage of tolerance rather than acceptance to members of different tribes and clans 17. Peace and Order -- the participants in an FGD observed an improvement in the peace and order conditions in their communities. They attributed this improvement to the permanent physical presence of a police detachment stationed in the contractor s camp and shorter response time to calls from the residents in times of troubles. Page 8 of 38

9 2.0 INTRODUCTION 2.1 Project Background 18. The Highlands Region of Papua New Guinea (PNG), comprising the Provinces of Western Highlands, Jiwaka, Southern Highlands, Hela, Eastern Highlands, Enga and Simbu, is a major contributor to the PNG economy through its agricultural production and mineral resources. A well-maintained road network is essential to facilitate the movement of goods and people. The Government of PNG (GoPNG) has made significant investment in improving the road network but a lack of maintenance has resulted in deterioration of the roads such that the Highlands Core Road Network (HCRN) is now in poor condition. 19. In order to address the deterioration of the HCRN there is a clear need to: (i) implement a program of regular maintenance on all HCRN roads that are in good condition; and (ii) improve those roads that are in poor condition and ensure that maintenance begins on those roads as soon the improvement works are completed. 20. The GoPNG has negotiated a Multi-Tranche Financing Facility (MFF) loan with the Asian Development Bank (ADB) to implement the Highlands Region Road Improvement Investment Program (HRRIIP) in tranches. The HRRIIP includes projects to improve the HCRN, the preparation of long-term maintenance contracts for the HCRN, and the capacity development of road agencies. In total, 13 road sections are expected to be funded under the program. The Execution Agency (EA) for the program is Department of Works (DOW) whilst the Highland Road Management Group (HRMG) is the Implementation Agency (IA). 21. Tranche 2 (Loan # 3076/3077) included the upgrading, rehabilitation and maintenance of three road sections namely, Mendi-Tambul, Kotna-Lampramp and Ialibu-Kagua in the Western Highlands Province (WHP) and Southern Highlands Province (SHP). 22. The Kotna-Lampramp Road Section is covered by CSTB contract # 2947 entered into by the Independent State of Papua New Guinea represented by the Department of Works and National Authority and China Overseas Engineering Company (COVEC) China, LTD. The contract commenced in May 16, 2016, with a duration of 24 months and is expected to be completed by May, Sub-Project Description 23. The road section commences in the township of Kotna at the junction (Kitip Junction) with the Ogelbeng Dona Road (NM 3903) and proceeds in a north westerly direction to Lampramp at the junction with the Baiyer River Road (NM 3901), just south of Baiyer. The subproject has a length of 31.65km. 24. The sub-project is located in the local level governments (LLGs) of Dei Rural, Dei District and Mul Rural in Mul/Baiyer District in WHP. Based on the 2011 population census, the subproject has a RIZ of around 147, 504 persons distributed among 33, 010 households with an average of 4.47 persons per household. The population in the RIZ is projected to grow to 229, 806 persons in 2026 and 308, 841 persons in The whole area of the existing road is 122, sqm or an average width of 3.87 meters. The additional customary land required by the subproject is 288, sqm while additional state land required is 63, sqm or an aggregate total of 352, sqm. The average width of the additional land required is sqm. Overall, the width of the existing road and the construction limits is 15 meters. 26. There are no structures, fences or graves that will be affected by the project. In addition to land, only crops and trees are affected. There is a total of 7, 892 plants and trees that will be Page 9 of 38

10 affected by the subproject. There are no DPs that will suffer any business loss or need vulnerability allowance since land, crops and tree losses are on the account of the 9 tribes and clans who own these affected assets. The subproject s resettlement category is Category B because only on land owned by 9 tribes/clans and few crops and trees that will be affected by the subproject. In addition, the loss of land or income generating assets is below 10% (insignificant). 2.3 Institutional Arrangements 27. The Department of Works, as the executing agency, has the overall responsibility to manage the planning, implementation and monitoring related to acquiring use rights for additional land to implement HRRIIP subprojects, as well as compensation for damages on project-affected land. 28. DOW established a Project Management Office (PMO) headed by a Project Director which manages the day to day activities of the program. Within the PMO, there are two units, the Project Management Unit (PMU) which is based in Port Moresby. The other is the Highlands Region Management Group (HRMG), the DOW s Project Implementation Unit (PUI) for HHRIP subprojects to carry out the planning, implementation and monitoring for land activities, as required and is based in Mt. Hagen. 29. HRMG is headed by the Field Project Manager (FPM). Under the FPM are two subunits, the construction unit headed by the Engineer and the social and environmental safeguards unit headed by the Senior Field Project Coordinator (SFPC). In the revitalized organizational chart (as of September 1, 2017), the positions of FPM and SFPC are handled by the same person for smoother coordination and more effective implementation. For the social and environmental safeguards, the SFPC is ably supported by the Manager of Technical Services (MTS). Under the MTS are two sub-units based on geographical considerations, namely Eastern and Western Sections of the Highlands Region. The details are shown in Appendix The new reporting protocols for the monitoring reports originate from the resettlement or environmental officers who prepare their back to office reports (BTOR). Routinely, they visit their respective sub-project twice a month. In addition, the EOs may return to the subproject as often as needed if new issues will arise regarding resettlement and environmental issues. 31. These collated BTORs form the backbone of the monthly reports. The monthly reports form the basis for the quarterly reports. These quarterly reports are augmented by the data retrieved from the contractor such as employment, quarry operations, participation of women in employment and other relevant data. The quarterly reports form the basis of the semi-annual reports that are being submitted to DOW/POM and ADB. 2.4 Purpose & Methodology 32. This report presents the status of social safeguards including the compliance with approved RAP in respect of Kotna-Lampramp road section, covering the review period of July to December This semi-annual monitoring report (SMR) is a requirement under the Safeguards Policy Statement 2009 (SPS 2009). 33. This report also establishes and summarizes various resettlement activities undertaken for this sub-project which were presented in some other reports. Highlights and important milestones are reiterated to produce this document containing all the previous documentation and activities for this sub-project. This report is undertaken to establish the basis and foundation for future quarterly, semi-annual and annual reports. 34. This report contains the outcomes attained and issues encountered during the implementation of RAP, for the covered review period. Based on the issues and concerns arising Page 10 of 38

11 out of covered review period, corresponding corrective measures for the first half of 2018 are recommended to address residual resettlement issues. 35. This semi-annual report is based on data gathered from several sources. The primary data was gathered through key informants interviews (KIIs) with project staff, officials, community leaders, the contractor and DPs. More in-depth focused group discussions (FGDs) were conducted with DPs to gather relevant information on resettlement, the manner of implementation of RP and its impacts and finally direct and indirect benefits accruing to the DPs. The secondary data sources utilized include status and monitoring reports produced by the HRMG, contractor reports, CSC, district administrators and other reports. 36. Indicators for the internal monitoring are those related to process, immediate outputs and results. This information has been collected directly from the field and reported monthly to the DOW by the HRMG staff to assess the progress and results of RP implementation, and to adjust the work program, if necessary. These monthly reports have been consolidated for this semiannual social safeguards monitoring report. Specific monitoring benchmarks are: Budget and Time Frame; Delivery of Compensation and Entitlements; Public Participation and Consultations; Benefit Monitoring; Requirements for Remedial Actions. Page 11 of 38

12 3.0 BACKGROUND OF RESETTLEMENT ACTIVITIES 3.1 Detailed Design Stage 37. The first km of the sub-project is customary land and located in Dei district while the remaining km is state land and located in Mul Baiyer District, both in WHP. After several consultations with the clans and communities that jointly own the land, a memorandum of agreement (MOA) was agreed upon permitting the use of the customary land in exchange for public infrastructure. This meant that there was no change in land ownership but only permission to use their customary land for the upgrading and rehabilitation of the road. This MOA also validated and confirmed the permission of their tribal forefathers for the existing road carriage from Kotna to Lampramp. 38. The MOA covered the land from the edge of the existing road up to the construction limits including road clearance and other infrastructure (e.g., drainage and culverts). This linear area was the subject matter of the DMS. The cut-off date is the date when the DMS was completed which is June 21, 2013 in this road sub-project. 3.2 Process of Compensation 39. The DMS was undertaken by the design consultancy group engaged by DOW to formulate the final detailed engineering design. Once the master list of DPs with the breakdown of affected assets and their corresponding amounts was submitted to DOW, the list is verified and confirmed by HRMG through actual fieldworks. After verification, the master list is submitted to PMO for funding allocation. 40. Once approved, the total compensation budget from DOW/POM is then remitted to the Provincial Works Office through the Provincial Works Manager (PWM) who has jurisdiction over the project. If the sub-project road spans two provinces, then, the remittance for the compensation budget may be sent to either province. 41. Once the resettlement budget is received by the PWO, the PWM coordinates with the concerned district administrators (DAs), LLG presidents, ward leaders and village councilors to inform and mobilize the DPs to attend and receive their compensation payments for the affected assets. The PWM sets a payment schedule and HRMG is duly notified on the payment schedule. A disbursing team from the PMU in Port Moresby goes to the sub-project road to coordinate with the PWM and distribute the actual compensation payments based on the final master list. 42. The actual compensation payment is directly given to DP and most of the time with their families in the presence of the DA, LLG president, ward and village councilors, PWM and/or his representatives. The PMU group who came from Port Moresby do the actual payments while representatives of HRMG act as observers. 43. With the presence of ward councilors, each DP is called and receives cash payment contained in an envelope with the amount indicated in the envelope. The DP is photograph while holding the payment before he sign the deed of release (in triplicate) indicating that DOW has fully complied with its obligation and he has waived his right over his affected properties. There are two witnesses, one from HRMG and another from a local leader. 44. The PMU group then prepares and finalizes a summary report, attaching the deed of release (DOR) as supporting documents. One set is given to the PWM because he will be dealing with allegations of non-payment and other compensation related complaints. Another set is provided to HRMG as the project implementing unit while the last set is brought to the PMU as part of the funding liquidation process. Page 12 of 38

13 4.0 BUDGET AND TIME FRAME 45. The Highlands Region Management Group (HRMG) under the Department of Works based in the DOW compound in Mt. Hagen, who is tasked to internally monitor all activities associated with land acquisition and payment of compensation to DPs have been mobilized since Tranche 1 and is now fully staffed to undertake its responsibilities in Tranche It is headed by the Senior Field Coordinator who is in charge of day to day monitoring activities and is supported by the Social Safeguards officers of the eastern and western sections. There are four (4) community relations officers (CROs) under HRMG assigned to (1) Kotna- Lampramp, (1) Ialibu-Kagua and (2) Mendi-Tambul (Mendi side) and Tambul side). HRMG is assisted by the Social Safeguards/ Resettlement Specialist from the Construction and Supervision Consultant (CSC). 47. The new reporting protocols for the monitoring reports originate from the resettlement or environmental officers who prepare their back to office reports (BTOR). Routinely, they visit their respective sub-project twice a month. In addition, the EOs may return to the subproject as often as needed if new issues will arise regarding resettlement and environmental issues. 48. These collated BTORs form the backbone of the monthly reports. The monthly reports form the basis for the quarterly reports. These quarterly reports are augmented by the data retrieved from the contractor such as employment, quarry operations, participation of women in employment and other relevant data. The quarterly reports form the basis of the semi-annual reports that are being submitted to DOW/POM and ADB. Page 13 of 38

14 5.0 DELIVERY OF COMPENSATION AND ENTITLEMENTS 49. The resettlement plan was submitted and approved by ADB in September, There were no affected residential or business structures, fences and graves. The affected crops and trees amounted to Kina 36, In addition, a 19% was added to reflect the market rates of crops and trees based on the 2008 Valuer General s Rates. The adjusted value of the crops and trees amounted to Kina 43, The details are shown in the following Table 1: Summary of Affected Assets. TABLE 1: SUMMARY OF AFFECTED ASSETS Affected Asset Unit Amount Land Square meter 352, Tree Crops Number of trees 892 Single Plants and Trees Number of plants and trees 1,309 Clump Plants and Trees Number of plants and trees 2,623 Single plants Number of plants 1,418 Vine or clump plants Number of plants 284 Mound plants Number of mounds 30 Forest trees Number of trees 1, A verification survey was conducted to review the findings of the DMS. There were some adjustments in the number of crops and trees and the final number of affected crops and trees amounted to Kina 40, After consultations with the Provincial Governor, district, LLG presidents and ward leaders, the affected wards agreed to adopt a No Compensation Policy for the affected assets in the sub-project. HRMG reminded the local leaders that payment of affected assets is in compliance with the loan agreement signed between the Department of Works and Asian Development Bank. It is in the process of making payments for the loss of crops and trees that will be affected by the sub-project road. 52. The governor was informed that the list of DPs with affected crops and trees was prepared by the design consultant based on the 2008 Valuer general Schedule of Compensation with the corresponding adjustment of an additional 19% to reflect the present market rates. The Governor while appreciating DOW s desire to comply with the loan covenant was resolute to maintain his no compensation policy on major infrastructure projects being undertaken in the province. 53. There were no compensation policy for the removal of trees, crops and structures within the road construction limits applied to road projects implemented in WHP under ADB loan 1709 (Ogelbeng-Ambra, Ambra-Kotna and Kotna-Banz). All Council Presidents and Councillors made a commitment and signed on May 16, 2015 an Oath and Affirmation supporting the No Compensation Policy for the Kotna-Lampramp sub-project road. 54. The Governor appreciated DOW s desire to comply with the loan covenant but at the same time adamant to maintain his no compensation policy being undertaken in the province and therefore discouraged DOW from entertaining the compensation policy. As a consequence of these discussions, in-kind compensation/ development packages were considered in lieu of payment of compensation. 55. Consultations and meetings with displaced persons and ward leaders were conducted to flesh out the breakdown and details of the in-kind compensation. It was agreed that an equivalent amount will be used to complete unfinished buildings which were either undertaken by the School Board of Management or commitments made by individuals but not fulfilled. Page 14 of 38

15 56. An equivalent amount for the loss of crops and trees was allocated to rehabilitate and donate to schools and other existing infrastructure as in-kind grant to facilitate in purchasing building materials and other items. The institutions that were selected to receive the in-kind grant are located along the Kotna-Lampramp road corridor. The details are shown in the following Table 2: Breakdown of Payment for In-Kind Compensation. TABLE 2: BREAKDOWN OF PAYMENT FOR IN-KIND COMPENSATION No: Name of Institution Amount presented District/ LLG Name as in-kind grant electorate 1 Kotna Christian Academy Elementary School K3,000 Kotna Dei 2 Ambuga Primary School 10,000 Kotna Dei 3 Muga Pena Aid Post 2,500 Kotna Dei 4 Muga Pena Elementary School 1,500 Kotna Dei 5 Muga Pena Primary School 3,000 Kotna Dei 6 Koma Pulg Elementary School 5,000 Lampramp Mul-Baiyer 7 Kinabuga Primary School 15,000 Lampramp Mul-Baiyer Total Amount 40, As all requests were for building materials to complete the classrooms and Aid Post (health center), HRMG arranged quotations from major suppliers of building materials and Tininga Hardware was selected to supply the building materials and one cheque payment was made and delivery of materials arranged. 58. Two trucks owned by locals from the affected district of Dei and 5 youths also from Dei District were hired to load and deliver the materials to the selected schools and Aid Post. Deliveries of building materials took place on Kotna Section on July 23, 2015 and Lampramp Section on July 24, The whole in-kind compensation was fully delivered to the communities. 59. The schools and health facilities that have been refurbished provide good value to children and the community in general. The schools have been helped by way of roofing sheets and other materials to expend classrooms and to provide accommodation to teachers. In addition to the materials supplied by HRMG, the schools have generated own funding to complete on-going building work. The students are mainly from the affected communities, but few others are from adjacent other villages away from the alignment. Hence, the assistance from the project has seen benefits to the wider community inclusive of the APs. 60. There were no payments made for the additional land required to upgrade and rehabilitate the sub-project road because permission to use were already given by the customary landowners in exchange for the road infrastructure. There was no change in landownership, customary landowners still own the land but have permitted DOW for its use. Page 15 of 38

16 6.0 PUBLIC PARTICIPATION AND CONSULTATIONS 61. As of end of the reporting period, more than 85% of the construction works have already been completed. The major construction activities that gave rise to grievances and complaints were already accomplished such as clearing and grabbing, construction of gabion baskets, line drains and rip rap activities. The activities in the project are winding down and residents are now reaping the benefits of a sealed road. With this background, a brief discussions on public consultations and grievance redress are presented below. 6.1 Public Consultations 62. There were no more public consultations conducted along the sub-project from July to December 2017 for the sub-project. As of end of December 2017, this project had an overall cumulative actual accomplishment of more than 85.00%. The works comprised mainly of asphalt paving works both from the 1st and 2nd level of seal and the installation of the road fixtures. 63. The construction activities which give rise to resettlement complaints, namely the clearing and grubbing and earthworks have been completed. The residents have now experiencing the benefits of an improved road. There are some grievances but these are environmental issues that occurred outside of the construction limits and which are outside of this social safeguards monitoring report. 6.2 Grievance Redress Mechanism 64. The Grievance Redress Committee (GRC) has been established. But there were no formal grievances filed within the reporting period. The contractor is maintaining a log-book in the camp site where all grievances are expected to be logged in. In the meantime, the contractor has formed a committee headed by project manager and PRO in close consultation with community leaders to resolve minor grievances. Several minor grievances have already been resolved involving compensation payment where applicable. 65. As part of grievance redress process, awareness was conducted to enhance the DPs understanding of the GRC during the review period. The main role of the community relations officer of HRMG and 4 CROs of the contractor (1 woman and 3 men) were to create awareness and initially investigate the merits of the issues. The DPs were informed about the process of handling the grievances and the mechanism in place to provide resolution to their grievances. 66. A sum of kina 16, was set aside as contingent funds to address resettlement related issues. There were claims of 11 unmarked graves and burial sites investigated by the resettlement officer of HRMG and these were amicably settled. There are no outstanding issues as of end of December Page 16 of 38

17 7.0 BENEFIT MONITORING 68. Mobilization activities started on May 16, 2016, the official start of the sub-project and were substantially completed on August 3, This is the start of construction activities, basically the clearing and grabbing activities. In addition, the contractor started to develop their quarries, reinforce existing bridges so that the equipment and vehicles may pass through and developed their construction camps. Almost all the construction works have been completed. The activities undertaken during the reporting period generated the following benefits Road Construction Employment 69. Project employment is one of the positive effects of the project and the contractor is greatly encouraged to source its manpower requirements from the DPs and the residents of the affected wards and villages. It is also a condition in the MOA, wherein the customary land owners permitted DOW to upgrade and rehabilitate the sub-project fully expecting that they will be hired to work in the road project. 70. From July to December June 2017, the Kotna-Lampramp project hired a total of 1,678 workers and personnel. There were 1,224 males (72.94%) while there were 464 females (27.05%) during the covered period employed in the sub-project. There were 1,043 DPs that were employed in the sub-project. This represents 62.16% of total persons hired or more than half of all employed workers and personnel for the covered period. The breakdown is shown in the following Table 3: Summary of Monthly Employment by Gender. TABLE 3: SUMMARY OF MONTHLY EMPLOYMENT BY GENDER Month Male Female Total DPs Employed Estimated Female Wages Estimated Total Wages July , , August , , September , , October , , November , , December , , Total 1, ,678 1, , , Monthly Average , , Percentage 72.94% 27.05% 100% 62.16% 71. On the average, the Kotna-Lampramp project hired of 280 workers and personnel per month for the covered six months period. Out of this total, there were 204 males and 76 females. There were 174 workers and personnel who are displaced persons. 72. The minimum wage in the Highlands Region is around Kina 500 a month (248 per fourth night). This is the basis for estimating the wages. Overall, the estimated total wages paid to workers and personnel in the subproject amounted to Kina 839, or an average of Kina 139,833 per month. It is estimated that women earned at least Kina 177, for the 2 nd half of 2017 or a monthly average of Kina 29, from direct employment. 73. In addition, the contractor also farmed out certain construction activities that were not previously captured by the employment data because these deliverables are paid per task or per piece. However, this deficiency has been rectified and data on women s participation in non-payroll activities have been retrieved and documented. 74. There are five construction activities where women have participated but were not reflected in the employment data because their mode of payment is not on a daily basis but on the completion of a certain piece or task. These are construction of gabion baskets, line drains, ripraps, head walls and other assorted construction tasks. Page 17 of 38

18 75. For the covered period, there were a total of 449 women who worked and were paid for these 5 construction activities. There were 155 women who were involved in stone sorting. Women sort stones that are specified in for the gabion baskets. These are usually done in the quarries and the sorted stones are then delivered by the contractor to the various construction sites. The other details are shown in Table 4: Summary of Women s' Participation in Non-Payroll Activities. TABLE 4: SUMMARY OF WOMEN S' PARTICIPATION IN NON-PAYROLL ACTIVITIES Month Gabions Line Drains Rip Raps Head Walls Others Total July August September October November December Total Monthly Average Percentage 34.52% 28.95% 10.24% 9.35% 16.93% 100% 76. The minimum wage in the Highlands Region is around Kina 500 a month. This is the basis for estimating the wages paid to women for the covered period. This amount is multiplied by the number of women for the covered period. It is estimated that the women were only able to provide 75% of their time for these construction activities because of the demands of their household responsibilities. 77. For the covered period, the 449 women working in the project for non-payroll activities were able were able to earn an estimated Kina 168, from July to December 2017 or a monthly average of Kina 28, The details are shown in the following Table 5: Estimated Monthly Income of Women In Non-Payroll Activities. TABLE 5: ESTIMATED MONTHLY INCOME OF WOMEN IN NON-PAYROLL ACTIVITIES Month Total Number of Women Estimated Wages July , August , September 30 11, October 80 30, November 75 28, December 60 22, Total , Monthly Average 75 28, The monitoring for the covered period was able to disaggregate the employment data by affected local government level. There was a total of 1,678 persons employed from July to December Out of this total, 540 persons were from Kotna LLG, 641 persons from Lampramp LLG, 136 from other LLGs while 361 were foreigners. The details are shown in the following Table 6: Summary of Employment by Origin. TABLE 6: SUMMARY OF EMPLOYMENT BY ORIGIN Month Foreigner Kotna LLG Lampramp LLG Others Total July August Page 18 of 38

19 September October November December Total ,678 Monthly Average Percentage 21.51% 32.18% 38.20% 8.10% 100% 79. The affected wards under Kotna LLG are Kotna, Ambuga, Kent 1, Kent 2, Nunga 1, Nunga 2, Mopi, Golke, Tiki 1, Tiki 2, Kanapila 1 and Kanapila 2 while affected wards under Lampramp LLG are Baiyer 1 and Baiyer 2. These council wards are directly affected wards of the sub-project road. 80. The subproject road traverses two local government units, namely Kotna and Lampramp LLGs. In terms of direct benefits accruing from the project, an estimate was undertaken to calculate the income being derived from employment in the project by workers from the two affected LLGs. The computation was based on the minimum salary of Kina 500 per month. 81. It is estimated that 540 workers from Kotna LLG received Kina 270, from the covered period working in the subproject. For the same period, it was also estimated that the 641 workers from Lampramp LLG received Kina 320, Salaries and wages of foreigners and workers from other LLGs were excluded in this computation. Combining the income of the workers from the two affected LLGs, the total amount was Kina 590, from July to December The details are shown in the following Table 7: Estimated Monthly Wages Paid to Workers from Affected LLGs. TABLE 7: ESTIMATED MONTHLY WAGES PAID TO WORKERS FROM AFFECTED LLGS Month Kotna LLG Estimated Lampramp Estimated Combined Wages LLG Wages Wages July , , , August , , , September 32 16, , , October , , , November 95 47, , , December , , , Total , , , Average 90 45, , , Benefits from Quarry Operations 82. The contractor surveys the areas along the road subproject and identifies potential quarry sites. Once samples of rocks and earth materials meet certain criteria, the contractor negotiates and enters into an agreement with the land owners to quarry their lands. The contractor develops the quarry site, supply the necessary heavy equipment and hire the manpower requirements to operate the quarry. In most cases, the contractor pays a down payment to enter the land, and then pays an additional amount based on the volume of burrow extracted. A representative of the owner(s) monitors the volume of extraction and will be paid periodically based on agreement. 83. The owners of the lands where the quarries are located are the tribes and clans who own the customary lands. However, there are tribe members who are assigned the portions of customary lands where the quarries are located. These tribal occupants suffer direct disturbances and are entitled to a bigger share than ordinary tribal members. The royalties received each month are divided based on internal agreements within the tribes. Page 19 of 38

20 84. In the Kotna-Lampramp sub-project, there are two major and one minor quarry sites. For the covered period, it was estimated that a total of 2,980 tons of burrows were extracted from these quarries. Out of this total, 2,030 tons came from Mega River while 730 tons came from Puiya Quarry located at chainage 22km. It is estimated that the amount of these burrows reached Kina 74, and all of these amounts were paid to the land owners along the sub-project road. The details are shown in the following Table 8: Summary of Quarry Volume & Estimated Value. TABLE 8: SUMMARY OF QUARRY VOLUME & ESTIMATED VALUE Other Quarries Total Estimated Value (kina) Month Mega Quarry Puiya Quarry (ton) July ,070 26, August , September , October , November , December , Total 2, ,980 74, Monthly Average , Percentage 68.12% 24.49% 7.38% 100% *Estimated amount is based on the signed contract of K2.50/bucket or K25.00/ton 85. The contractor also leases customary land to locate their camp and other facilities. In addition, the contractor also pays customary land owners for disposal sites were the contractor stockpile the excess spoils, basically from clearing and grubbing activities. 86. The contractor pays a monthly lease of Kina 2,100 for the use of around 1 hectare of land where their main camp in Tiki village is located and some disposal sites. For the covered period, the contractor paid the landowners of this sites a total of Kina 14, Upon the completion of the construction project or expiration of the lease, all permanent improvements shall be owned by the customary land owners. The details are shown in the following Table 9: Summary of Lease Rental Paid to Customary Land Owners. TABLE 9: SUMMARY OF LEASE RENTAL PAID TO CUSTOMARY LAND OWNERS Month Tiki Camp Other Facilities Disposal Sites Total July 2, , August 2, , September 2, , October 2, , November 2, , December 2, , Total 12, , , Monthly Average 2, , Percentage 88.11% 11.89% % 7.3 Other Local Benefits 87. The main camp located in Tiki Village had purchased locally various construction materials, purchases of food, water, and miscellaneous items. For the covered period, Tiki camp spent a total of Kina 6, Purchases of food totaled Kina 4, and represented around 62% of local purchases. These are mostly fruits and vegetables coming from neighboring areas around the camp. Purchases of other food items such as meat, chicken, noodles and condiments were bought from Mt. Hagen. The other details are shown in the following Table 10: Local Purchases of the Contractor. Page 20 of 38

21 TABLE 10: LOCAL PURCHASES OF THE CONTRACTOR Month Local Purchases of Food Local Construction Materials Local Purchases of Other Items Other Local Expenditures July August September 2, ,300 October , November December , Total 4, , , Monthly Average Percentage 61.87% 6.97% 6.97% 19.18% 100% 7.4 Summary of Direct Benefits 88. Direct Employment For the months of July to December 2017, the Kotna Lampramp subproject was able to generate 1,678 payroll positions with estimated wages of Kina 839, Out of this total, 540 employment payroll positions were filled up by residents of Kotna LLG estimated at Kina 270, For the Lampramp LLG, the project was able to generate 641 payroll positions with an estimated wages equivalent to Kina 320, Overall, the residents of both Kotna and Lampramp LLGs were able to earn 590, or around 70% of the total payroll for the second half of Women s Participation For the second half of 2017, there were a total of 454 female workers directly employed by the contractor classified as payroll activities earning a total of Kina 177, In addition, there were also 449 female workers in non-payroll activities earning a total of Kina 168, for the reporting period. In summary, women earned a total of Kina 345, for the reporting period. 90. Other Benefits The customary land owners earned a total of Kina 74, as royalties from the operations of the quarries for the project. In addition, customary land owners earned a total of Kina 14, for land leases paid for the camp and other facilities including disposal sites. Furthermore, local purchases of the contractor netted the surrounding communities a total of Kina 6, In summary the surrounding communities earned a total of Kina 95, from various sources. Total Page 21 of 38

22 8.0 INDIRECT SOCIAL BENEFITS 8.1 Methodology 92. An initial focus group discussion (FGD) was conducted with the health and safety officer (Covec), CRO (Covec), PRO (HRMG), DOW supervisor (HRMG) and EO (Covec) to discuss their observations and experiences with the local communities regarding any change they have noticed during their assignments in the road project. Except for the PRO of the contractor, the rest are from the affected wards and villages along the subproject road. 93. In addition, the monitoring team also conducted ocular inspections along the road subproject to determine the number of new structures that have been constructed since the start of the project. The team also observed and monitored the number of vehicles, PMVs, trips per day and bus fares that are passing through the project and compared them before the project started. Informal interviews were also conducted with some DPs and residents along the road. 8.2 Road Segmentation 94. The social benefits derived from a road project is not uniform. The Kotna Lampramp road may be divided into three (3) segments in terms of social impacts because of their geographical locations, terrain and previous accessibility to town centers. The physical characteristics of each of these segments are similar within each segment which enable clustering of wards and villages to facilitate discussions on social benefits arising out of the improvement of the road. 95. The first segment (Area A) starts from Km +000 to around Km Before the road project, this area is accessible to Mt. Hagen because some PMV serviced this road stretch. Residents were able with some difficulty to bring their agricultural produce to the market. Government employees were able to report to their offices and stations almost daily. Students studying in Mt. Hagen were able to commute to their schools daily. Accessibility to Mt. Hagen was about two hours via PMVs. 96. The second segment (Area B) starts in the vicinity of Km up to Km This is the mountainous segment of the road project and was impassable to PMVs and private vehicles. This was the isolated part of the road segment and residents were forced to walk to the nearest area where the PMVs are available, depending on their locations. Employees and students who were working or studying in Mt. Hagen were forced to seek lodging in the city and only returned home during weekends. The production of surplus food and cash crops was discouraged because of lack of accessibility to Mt. Hagen. In the process, household income is low because of the inability of residents to bring their produce to Mt. Hagen. In case of coffee, buyers find it difficult to buy coffee in the area because coffee bags had to be carried on the backs of the owners or buyers of coffee. These additional costs lowered the buying price of coffee. Accessibility is around 3-4 hours to Mt Hagen with around 1 to 2 hours walk up to the areas serviced by PMVs. 97. The third segment (Area C) starts at Km up to Km with the last 6 km being located in state land. This area connects to Puiya Baiyer road which leads to Mt. Hagen. This segment is accessible to Mt. Hagen intermittently via the opposite direction of Area A, depending on the conditions of several bridges. The problems are the weak bridges and the erosion on the nearby river affecting some portions of the existing road. Employees and students were able to still commute daily to Mt. Hagen. Accessibility is also around 2 hours to Mt. Hagen. 98. The segmentation of these three areas is arbitrary and whose only purpose is to cluster the different wards and villages with similar physical and socio-economic characteristics. With this brief background of the asymmetrical impacts brought about by the different physical characteristics along the subproject road, this report will discuss the social impacts of the road project following the impacts identified in the resettlement plan for this project. Page 22 of 38

23 8.3 Construction of New Structures along the Sub-Project Road 99. In the resettlement plan, it was anticipated that households of the same tribe living far from the road project will be encouraged to migrate to areas within the same tribal land along the newly constructed road because of the benefits that they would derive from the project. With the help of ward leaders, an ocular inspection was conducted along the sub-project road to determine if this anticipated positive impact is observable at this point of the construction project duration From Kitip Junction, new structures on both sides were observable starting from Km2 up to around Km10, just before the beginning of the ascent to mountain passes. There was a cluster of 6 new houses at the end of this section of the road New structures were again observable starting from Km 16.5, around one kilometer before the Tiki Camp of the contractor up to around Km23 where a newly constructed school house was observed There were no new structures observed from Km 23 to Km 29, where the fourth bridge of the sub-project road is located. This bridge collapsed last year and is still not passable. A key informant shared his view that upon the rehabilitation of the bridge, they expect that new structures will be built because the end of the subproject at Km connects to the Puiya-Bayer Road through which Mt. Hagen is very accessible Along the sub-project, it was observed that there were not less than 34 new residential structures, not less than 12 trade stores and a new school were constructed after the start of the construction period of the subproject last February Increase of Commercial Activities 104. The increase in commercial activities is very noticeable in Area B, where previously this was not accessible. Trade stores were in the different stages of construction indicating that commercial activities are starting to perk up, helped along by some former residents who have returned because of a better road and had built or are building their houses in Area B In this subproject, there is significant cultivation of coffee as identified in the RP. Many residents are involved in activities related to coffee. There are two coffee plantations along the existing road and factories in the districts of Dei and Mul Baiyer. It is expected that the upgrading and rehabilitation of the subproject road will further boost and encourage small farm holders to produce more coffee by rehabilitating former coffee plantations or areas and/or developing new coffee areas There are signs of rehabilitation of the coffee plantation in Tiki Village (owned by the Collins) near the camp of the contractor. Workers are seen improving the fences of the plantation. Other workers were seen weeding the coffee areas while some are rehabilitating the ditches and canals. Overall, there seems to have a resurgence of plantation activities in this area It was also noticed that buyers of coffee with their trucks are frequenting the whole length of the road, buying coffee from small scale producers. Formerly, buyers would stay overnight in the area, waiting for the producers to bring their coffee beans. Now, there are bought right on the road with their weighing scales displayed along the road It was also identified in the RP that the farm produce from this subproject are of higher value compared to the other sub-projects under the HRRIIP. There is an abundance of fruits such as avocado, guava, pandanus, papaya and bananas which would indicate a marketing bias towards the preferences of urban centers such as Mt. Hagen. Page 23 of 38

24 109. Most households continue to raise small livestock such as pigs, goats, sheep and poultry. Among surveyed households in the RIZ during the preparation of the RAP, the sale of pigs as a source of cash income is evident and the income derived from this activity ranges from K500 to K1,500 per year. With the improvement of the road, it is expected that small livestock would increase, encouraged by better accessibility. 8.5 Power and Water 110. Based on the RP, it is expected that the upgrading and rehabilitation of the sub-project roads will encourage the utility companies supplying electricity and water to provide these facilities to households living along the road section. It must be pointed out that a primary requirement for these utility companies is accessibility to their franchise areas. It would be next to impossible to provide electricity or water to areas where their trucks and service vehicles cannot go. This project will provide the technical platform to seriously consider the provision of these services. It is up to these companies to also consider other factors such as population density, business and commercial activities, income level, etc. in their decision to provide such services Previously, electricity supplied by PNG Power was available up to around Km However, the present MP of Dei District has started talks with PNG Power for the extension of their power lines to cover the part of the road that do not have electricity. This was due to the clamor of many residents to avail of electricity to their wards and villages At the same time, the road improvement will also facilitate the electrical connections because their trucks and other equipment will now be able to pass through the road without any problems in accessibility. In addition, repair and maintenance works will also be facilitate by this improved road It should be noted that the road improvement under HRRIIP provided PNG Power with the technical platform to install additional house connections. It is now up to the company to apply their protocols to provide the needed electrical connections based on population density, business and commercial activities, income level, etc., in their decision to provide such services In the socio-economic survey conducted in 2012 for this project covering a sample size of 61 households, the major source of domestic water is from nearby streams accounting for 41 households. This is followed by spring, a source of water for 12 households. Other sources accounted for 8 respondents Based on the FGD, residents still avail of their traditional sources of domestic water supply. They do not know of any water supply project in their respective wards and villages. This will only indicate that their water supply is adequate and reliable even during dry periods. 8.6 Better Access to Markets 116. In the RP, it was predicted that the project will create better access to town centers especially on the middle section of the road where access is problematic. An all- weather road would mean better continuous access during rainy season and would improve household income (Manus 2009) because households are able to transport their agricultural produce easier and faster to the markets because of improve road conditions Before the project, the PMVs reached only up to Km 8. The very few PMVs who were plying this route were not able to proceed further because the rest of the road was not passable. The road was narrow and full of potholes. The travel through the mountainous portion was dangerous especially when the road was wet because of the absence of line drains. Small water pools abound along the road and there were eroded portions created by water draining to cliffs and ravines. The people living further down the road have to walk the rest of the way. Page 24 of 38

25 118. Commuters were discouraged to travel frequently because of long walking time, long waiting time for PMVs, high bus fares and physical discomfort in travelling. For food garden owners, they were discouraged to raise crops and vegetables because of high transportation costs which reduce their products competitiveness when their goods reached Mt. Hagen Market, the main distribution center in WHP. In addition, the physical condition of their agricultural produce suffered because of the rough travel between their food gardens and the main market. These were the conditions before the road project Presently, the residents of the whole section of the Kotna-Lampramp road are being serviced by PMVs. Agricultural produce, especially from Area B, is now being sold in Mt. Hagen because PMVs and private vehicles are able to haul fruits and vegetables. Business persons and students are now able to commute to Mt. Hagen and other built up centers daily. Food supplies and agricultural inputs are now reaching the villages after chainage km 8 because of their accessibility brought about by the road project The bus fare from Tiki Village to Mt Hagen via Kitip junction or Lampramp junction which was formerly 10 Kina is now reduced by 30% with PMVs charging only 7 Kina. The bus fare reduction was caused by the following factors; First, the road condition greatly improved, enabling PMVs to travel more trips per day Previously PMV can only make one round trip per day because of the bad roads. Now, the PMVs make two to three round trips per day. Second, there are more PMVs in this route, creating competition with the existing PMVs. Third, there are more commuters enabling the PMVs to ply their route with greater passenger capacity. 8.7 Improvement in Health Services 121. Based on the RP, it is expected that the sub-project roads will improve the health services in the RIZ. The association between better health and roads is based on the quality of the linkage between the village and the place where health services, both treatment and prevention, is being offered. The better the quality of the road and the more cash the smallholder has to spend, the more likely health care will be sought and received for themselves and their children. Some health services are itinerant, MCH clinics being one example. The better the quality of the road, the more likely the service will be offered regularly at the village level. Finally, many health services depend upon the regular and timely delivery of medicines, bandages and vaccinations to the aid post or health center, and on the effective supervision and administration of health service staff Residents around the four health facilities were able to visit and consult with the health center and aid posts. The reason(s) for this increase in visitations may be attributed to (a) better accessibility because of the road project and/or (b) increase in the incidences of sickness and disease. It is also possible that the improved road had enabled residents to earn more In serious medical services of residents, key informants related that the improved access to Mt. Hagen enabled the patients to be brought to the hospitals. Previously, there were serious medical cases wherein patients died before they reached the hospitals because of the bad road. This positive impact has been observed especially in Area B and interior villages within the road influence zone It was expected that the delivery of badly needed medical supplies for the health center and aid posts will be facilitated by the improved road. This presumed that there are available medical supplies elsewhere that can be delivered. However, during this reporting period, the public health system is in dire need of additional financial resources to buy medical supplies and hire additional health workers. Hence, the expected delivery of badly needed medical supplies did not materialized The participants of the FGD were asked what the families of patients did in the absence of medical supplies in the health center and health posts. Many of the families of these patients rode in PMVs and went to Mt. Hagen and bought the medicines in the pharmacies. In these cases, the improved road also assisted the patients, not on the expected availability of medical supplies Page 25 of 38

26 in their health center and aid posts but on improved accessibility to Mt. Hagen brought about by the road project. 8.8 Improvement in Educational Facilities and Services 126. Two key informants interviews were conducted in Tiki High School and Kinabuga Elementary School to assess the road impact on the educational facilities. The key informants were Philip Koite of Tiki High School and Clemente Koke of Kinabuga Elementary School, both teachers of their respective schools The most noticeable improvement in terms of educational facilities is the construction and operations of the Tiki High School. In an interview with Mr. Philip Koiti, a teacher of the school, he informed the team that there were 120 high school students at the start of the school year. Previously, these students, majority of whom are from the neighboring wards and villages were attending school elsewhere. But this arrangement is expensive because students have to commute daily from their homes or to find lodgings hear their schools. Many have to walk daily because bus fares were very expensive because of the bad roads. Some who cannot afford to study because of the expenses in attending other high schools had stopped attending schools When the high school was completed this year, students in the host and neighboring wards who were attending high school elsewhere or who had stopped attending schools enrolled in Tiki High School. There were also students coming from wards and villages outside of the affected communities of the road project. However, with the political unrests before and after the elections, many students had stopped attending school. Presently, there are only 70 students who are still attending classes Generally, the attendance of students who are from the neighboring wards and villages is high because of the proximity and accessibility of the high school. The travel to and from the school was reduced drastically and this enable the students to help more to the domestic tasks and in the cultivation of food gardens. In addition, the short travelling time enable students to do their assignments and study more in their homes The teacher also observed that students who would finish high school will have opportunities to be productive and find work that would pay higher wages. This will in effect assist in increasing household income because of the additional income that will be earned by these residents who will have higher educational attainment The teacher also observed that the improved road also helped the teachers because many of the teachers are from other wards and villages. Some teachers are from other districts or provinces in the Highlands Region. There were some teachers who were forced to rent and live around the school and return to their homes during weekends because of hardship and rigors of daily travelling because of bad roads. In terms of supervision and monitoring of their performances, the staff from the department finds it easier because of the improved road The interview with Mr. Koiti included exploring the possibility of students participation in tree planting. The teacher pointed out that it is possible for the students to plant seedlings as part of school activities and the budget for this activity may be used to build additional school facilities as a form of in-kind assistance. 8.9 Change in Lifestyle 133. Based on the resettlement plan, the upgrading and rehabilitation of the Kotna-Lapramp road will hasten the change in the lifestyle and culture of the members of the different tribes and clans living along this road section. The frequency of exposure and interaction of members of a tribe with different tribes is expected to increase because of better road conditions. Frequency of exposure to different cultures usually fosters tolerance if not understanding and this will assist in Page 26 of 38

27 the process of assimilation and integration wherein inhabitants of PNG will see themselves as members of a nation and not just members of a tribe or clan Based on the focus group discussions, the participants shared their unanimous observations on the change in lifestyle, comparing the behavior of residents before the commencement of the road project with their present behavior. Previously, residents just stared at faces of persons who are not from their respective tribes and clans. They were reluctant to interact and were very reserve with their dealings with persons they are not familiar with Members of different tribes who showed their faces to the host tribes were viewed with alarm and suspicion on the motives of their presence in their communities. Considering that there are no fixed boundaries for tribal lands but depended on the weakness of the neighboring tribes and the strength of the host tribe and the resultant prevalence of tribal conflicts in the Highlands Region, new faces are viewed very suspiciously and were discouraged not to stay long in their communities Presently, the residents along the road are more receptive to new faces. They are friendlier and many initiate conversations with them. The construction of the road brought new faces into their communities and the increase in interactions with new faces brought some degree of self-confidence to interact. This change in behavior marked a stage of tolerance rather than acceptance to members of different tribes and clans In addition, the participants also observed an improvement in the general peace and order conditions in their communities. They attributed this improvement to the permanent physical presence of a police detachment stationed in the contractor s camp which had responded to calls from the residents in times of troubles Previously, their communities especially in Area B are isolated and not passable to all types of vehicles and peace officers cannot reached trouble spots immediately. However, the improvement of the road facilitated the short response time of the peace officers to their communities. Peace officers assigned in Mul Baiyer, Tiki Camp and in Kutip Junction are capacitated to respond to community problems faster because of better travelling time This improvement on travelling time is reinforced by residents who can ask police assistance through cell phones. This combination of better traveling time and cell phones has contributed immensely to police presence in their communities Furthermore, there is an informal agreement among many but not all wards along the road to discourage the sale of alcoholic beverages in their communities. This discouraged the consumption in the communities because there were many instances in the past wherein disturbances were often caused by intoxication This change in behavior and improved peace and order conditions has positive implications to development. Investors and other business persons from other tribes and clans would be encouraged to migrate to these communities and take advantage of rising household income, better road and friendlier atmosphere. The influx of investments would trigger commercial and agricultural activities in the area. Customary land leases needed by these migrants will result in further improvement of household income. Page 27 of 38

28 9.0 REQUIREMENTS FOR REMEDIAL ACTIONS 9.1 Outstanding Issues from the Previous Reporting Period 143. There were no outstanding issues in the previous reporting period. The construction limits have been established previously and no resettlement related complaints and issues have been raised because majority of the construction activities are within the construction limits, which were previously addressed. 9.2 Recommendations for Corrective Actions 144. The subproject is scheduled to be completed on February 1, In preparation for the completion report, a limited interview survey will be conducted with some DPs to ascertain the impacts of the project on household income. Other indicators indicated in the RAP will be discussed and summarized. Page 28 of 38

29 Appendix 1: LIST OF REFERENCES 1. Resettlement Plan for Kotna-Lampramp Road section (2013). 2. Resettlement Monitoring Report for Kotna-Lampramp Rd (Nov 2014) 3. Resettlement Monitoring Report (Feb, May and June 2015) 4. Kotna Lampramp Completion Report Safeguards Monitoring Report for January-December, Social Safeguards Reports T1 and T2 Road projects, May Resettlement Monthly Monitoring Report (July and September, 2016) 8. Semi Annual Report July to December Semi Annual Report, January to June Quarterly Report 3 rd Quarter, Quarterly Report 4 th Quarter, Quarterly Report 1 st Quarter, Quarterly Report 2 nd Quarter, Quarterly Report 3 rd Quarter Report of the Monitoring of Safeguards & Implementation of Resettlement Activities (December, 2016) 16. Monitoring and Safeguards & Implementing Resettlement Activities, 2016 Annual Report Appendix 2: LIST OF PERSONS INTERVIEWED 1. Ippio Acceri, Team Leader, CSC 2. Alphonse Niggins, Senior Field Project Coordinator, HRMG 3. Paul Nombri, Technical Services Manager, HRMG 4. Jerry Frank, Deputy Camp Manager, Tigi Camp 5. Fredrik Nurum, CRO/HRMG 6. Rodney Kauru, Environmental Officer/ Contractor 7. Francis Kumin Health and Safety Officer 8. Philip Rima PRO/COVEC 9. Jack Pena Supervisor DOW/HRMG 10. Jack Bolki, Headmaster, Ambuga Primary School 11. John Mek, Board Member, Health Board 12. Kurpi, Board Member 13. Peter Tikil all Board Members 14. Tjej Tamy, Community Health Worker 15. Wingty Endgi, School Board Member, Muka Primary School 16. Philip Koiti, Teacher Tiki High School 17. Clemente Koke, Kinabuga Elementary School Page 29 of 38

30 Project Steering Committee Appendix 3: ORGANIZATIONAL CHART (Tranche 2) Department of Works, Project Implementation Unit (As of September 2017) Secretary David Wereh ASIAN DEVELOPMENT BANK D/Sec for Operations Steven Pup K.H. Wickramaratne Hasan Masood Manoharan Kannan Anura Widana Vacant Mohsin Almaji Chodai Various Individual Consultants Senior Project Coordinator Project Implementation Advisor Financial Management Specialist Safeguards, Resettlement Specialist Project Implementation Specialist Environmental Specialist Design & Supervision Consultants (Bridges) Provincial Works Managers FAS (Donor Programs) Gilbert Kapi Project Director (ADB) B. Neusamale Supporting Agencies National Roads Authority Ponge Poya Road Transport Authority Wilson Wariaka CONSTRUCTION Field Project Manager HRMG Alphonse Niggins Environmental & Social Safeguards Construction Supervision Consultants Team Leader -- Contractual Resident Engineers -- Technical Material Engineer Quantity Engineer National Environmental Specialist Engineer T2 Ippio Acceri Senior Field Project Coordinator Alphonse Niggins Contract Mgt Specialist Rural Road Specialist Social Safeguards Consultant Environmental Consultant Provincial Works Managers Technical Services Manager Paul Nombri Kotna- Lampramp Mendi-Tambul Ialibu-Kagua Eastern Sector Social Safeguards Officer Environmental Officer Community Relations Officers Western Sector Social Safeguards Officer Environmental Officer Community Relations Officers Page 30 of 38

31 Appendix 4: ROAD INFLUENCE ZONE MAP Page 31 of 38

32 Appendix 5: ATTENDANCE SHEET FOCUS GROUP DISCUSSION Page 32 of 38

33 Appendix 6: PHOTOGRAPHS Key informant interview in Tiki High School with Mr. Philip Koiti, a teacher regarding the impacts of the improved road, including the effects on the students. Key Informant interview in Kinabunga Elementary School with Clemente Koka, a teacher regarding the impacts of the improved road. Tree planting activities, a required of the road was also discussed including the possible participation of students. Page 33 of 38

34 Photograph of the newly sealed road located in the end section of Mul Baiyer District. This area was formerly a cattle ranch located on state land connecting the road to Puiya Baiyer Road. The wards and villages located in the middle of the road (Area B) can also pass through this section going to Mt. Hagen instead of Kutip junction. Page 34 of 38

35 This is a photograph (before the project) in Area B (Km ), the most isolate part of the Kotna- Lampramp road because vehicles cannot traverse this section of the project. Residents had to walk around 2 hours to reached the point where PMVs were available. This is a photograph of Area B as of 3 rd quarter The sealed road enabled PMVs to enter Kutip Junction at the start of the project and exit at the end of the project in Puiya Baiyer Road, servicing the entire length of the Road project. Page 35 of 38

36 Photograph of a nearly completed permanent modern house made of galvanized walls and roof built by the owner of the kunai house at the left. This is typical of the development in Kotna-Lampramp project wherein house owners are greatly encouraged to improved their houses or build new houses because of the improved road. The owner of this new kunai house was living further inside their customary land near the base of the mountain seen at the foreground. He decided to build this house to take advantage of the improved accessibility brought about by the road project. This traditional house is made of wooden frame, woven bamboo walls and thatch roof. Page 36 of 38

37 The resurgence of selling activities along the road is shown in the above photograph. This is located across the Tiki Camp of the contractor. The improvement of the road enabled food garden owners to sell their goods to the camp. The fence of a coffee plantation located in Tiki Village is presently being rehabilitated as shown in the photograph. This one of the activities required in anticipation of an increase in coffee bean harvests, largely encouraged by the rehabilitation of the Kotna-Lampramp Road. Page 37 of 38

38 The same coffee plantation underwent weeding of grasses to reinvigorate the plants in anticipation of easier access to markets arising out of the improved road. Increase in coffee bean production is expected because of this activity. Soil erosion measures and rehabilitation of canals were also undertaken as part of the preparations of the coffee plantation to take advantage of the improved road Page 38 of 38