1 Resettlement Plan June 2012 Sri Lanka: Northern Road Connectivity Project Additional Financing Prepared by the Road Development Authority, Ministry of Ports and Highways for the Asian Development Bank.
2 CURRENCY EQUIVALENTS (as of 5 June 2012) Currency unit Sri Lankan rupee (SLR) SLR1.00 = $ $1.00 = SLR ABBREVIATIONS ADB Asian Development Bank CBO community-based organization CSC construction supervision consultant DS Divisional Secretary DSD Divisional Secretariat Division EA Executing Agency ESD Environment and Social Division GN Grama Niladhari GND Grama Niladhari Divisions GOSL Government of Sri Lanka GRC Grievance Redress Committee GRM Grievance Redress Mechanism IA Implementing Agency IRP income restoration program LAA Land Acquisition Act LARS land acquisition and resettlement survey MIS management information systems MOPH Ministry of Ports and Highways NIRP National Involuntary Resettlement Policy NRCP Northern Road Connectivity Project NP North Province NGO nongovernment organization PD Project Director PEA PIU Project Implementation Unit RDA Road Development Authority REA rapid environmental assessment RHS right hand side ROW right-of-way SES socioeconomic survey SPS Safeguard Policy Statement TOR terms of reference NOTE In this report, "$" refers to US dollars.
3 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 CONTENTS EXECUTIVE SUMMARY... vi I. Project Description... 1 A. Description of the Road Project... 1 B. Objectives of the Resettlement Plan... 2 C. Methodology... 3 II. Legislative and Policy Framework... 4 A. Legislative Framework... 4 B. Policy Framework... 8 C. Existing Gaps in LAA and NIRP vis-à-vis SPS III. Scope of Land Acquisition and Resettlement A. Impact on Private Properties B. Impact on non-private owned properties C. Impact on vulnerable households D. Impact on private trees E. Restoration of access roads/paths F. Situation of Utility Services IV. Socioeconomic Profile A. Demographic information of affected households B. Demographic information of project affected communities C. Educational Information D. Income and Expenditure E. Persons with Disability F. Expected Benefits G. Attitudes of the people towards the development of the project H. Indigenous people V. Information Dissemination, Consultation and Participatory Process A. Consultation process with agencies responsible for land acquisition and resettlement B. Public Disclosure and Information Dissemination C. Consultation during formulation of RP D. Information Disclosure E. Consultation during implementation of RP VI. Entitlements A. Eligibility Policy B. Project Entitlement Matrix C. Cut-off Date... 36
5 v VII. Grievance Redresses Mechanism A. Awareness of GRM B. Methodology of Implementation C. Settling of issues D. Evaluation of GRM VIII. Relocation of Housing and Settlements IX. Income Restoration and Rehabilitation A. Project as a Development Opportunity B. Strategies for Income Restoration Program (IRP) C. Organization to implement income restoration plan X. Resettlement Budget XI. Implementation Schedule XII. Institutional Framework for Resettlement A. RDA/PMU B. Environment and Social Division (ESD) C. Divisional Secretariat D. Field Office of the RDA/PMU E. Project Implementation Consultants (PIC) XIII. Monitoring and Reporting F. Internal Monitoring G. External Monitoring H. Computerized Management Information System (MIS)... 51
6 vi EXECUTIVE SUMMARY I. PROJECT DESCRIPTION 1. The Asian Development Bank (ADB), together with the government of Sri Lanka will finance the Northern Roads Connectivity Project Additional Financing (the Project). The Project will take place in the Northern Province and North Central Province and will consists of rehabilitating 5 national highways and 14 provincial roads. The Jaffna-Pannai-Kaytes road national highway AB 19 is one of the roads that will be improved. AB 19 is located in Jaffna District in the Northern Province. The province was the worst conflict affected region in Sri Lanka. In general, the project area suffered severely by the ethnic conflict prevailed over three decades that ended in The conflict situation caused damages extensively to physical infrastructure, particularly to the road network, putting them in state of total disrepair. 2. The main improvement planned on the project road is related to carriageway development to suit all weather conditions with proper bituminous surfaces to ensure undisturbed road use throughout the year. As per construction plans, AB 19 will be a 2-lane status road with 6.6 meter carriage way and 3 meter hard shoulders. The average existing right of way is between 10 and 12 meters and existing carriage way is 4 to 5.5 meters. 3. This RP attempts to ensure that the land acquisition and resettlement impacts caused by the proposed road construction are identified, avoided, or minimized and mitigated and/or compensated in line with the objectives of the ADB 2009 Safegugard Policy Statement (SPS) and in accordance with the applicable legal enactments, policies and principles of the Government of Sri Lanka (GOSL). NIRP (2001) is the key policy document of the GOSL on resettlement planning. RDA will hold prime responsibility for execution of this Resettlement Plan. II. LEGISLATIVE AND POLICY FRAMEWORK 4. The RP is based on the Sri Lanka NIRP of 2001, involuntary resettlement policy component of the ADB's Safeguard Policy Statement (2009) requirement, the Land Acquisition Act of Ceylon 1960 as amended in The RF distilled the relevant policy principles from these sources and they reflect the safeguards policy requirements of the Government and ADB. III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 5. According to ADB SPS, the Project is categorized as B and not significant with 151 affected persons out of which 139 persons will be impacted below 10%. Only 4 persons from 1 household will be losing 10% or more of its productive assets. A summary of overall impact is found in Table A.
7 vii Table A - Summary table on project affected assets Incidents Amount Remarks Total amount of land affected Sq m. of land required from government ownership is not included as acquisition process is not applied for them Total number of affected households 37 Only 8 HHs are available at sites. 29 HHs are away from properties Total number of physically displaced 0 - persons Total number of economically displaced 0 - persons Total number of households losing 10% of 1 Comprising of 4 affected persons productive assets Total number of vulnerable persons 4 HHs over 60 years of age belonged to 8 HHs available at premises related to secondary structures. Information not available for 29 HHs who are away from their premises. Total number of permanent structures 32 Includes 23 secondary structures affected Total number of temporary structures affected 5 Belongs to secondary structures Total number of private trees affected 1 Belongs to women-headed HH Total number of community resources affected 6 3 government structures, 2 religious structures, 1 community structure 6. The resettlement planning for the Project has been affected by the long-term conflict as there was vast self evacuation of residents from their settlements leading to a vacuum society. Demographic analyses without taking them in to consideration do not represent a realistic situation of the circumstances. However, for this unprecedented situation as the people who have migrated from their respective settlements are spread all over the world and some live in various other places within the country, but without maintaining relations with their former communities. During resettlement planning, it is not possible to locate them and collect information for future resettlement actions. For many migrants, it may not relevant either. However, it is reasonable to expect that some titleholders may turn back and appear for compensation. The expected road development may accelerate their returning process due to project induced economic development, and the risk of losing their properties in their absence. Therefore, RP process has included provisions for compensation are made for their properties, and funds are deposited at court of law for requisition by lawful claimants. It is necessary to
8 viii maintain that absence is not a reason for any injustice or discrimination regarding all issues of compensation. 7. During the resettlement planning, 4 vulnerable households were identified out of those households who will be affected by land acquisition and are residing at the project site One private tree belonging to a woman-headed household will be affected by the Project. Special assistance has been allocated for them in the resettlement budget. 8. There will be no disturbances for utility services like water, electricity and telecommunication services along road sections and other service delivery systems of the government and NGOs by the proposed road development. IV. SOCIOECONOMIC PROFILE 9. The area falling within the road project comes under rural and semi-urban areas. Demographic information of only eight HHs available at their premises is available due to the outward migration during the last 30 years. This small number of HHs do not represent real situation of the project area with regards to composition of HH size and its internal characteristics. 10. The 20% sample survey conducted to gather information on socioeconomic situation in project area was completed in March This survey has taken 56 households along AB 19. It was found 70%, live in houses and 10% uses shops for residence purposes also. It is a noticeable fact that 18% of the HHs live with their friends. This seems to be a war time issue related to displacement of people caused by the ethnic disturbances and war situation prevailed sometime back. 11. Judging from the multiple responses received from the affected people, and weighing the pros and cons, it is evident that the majority of the people perceive the project as a good decision at the right time. Majority of the people expect the land value in the area to appreciate and the demand to increase. The commonly expressed view was that road development will bring numerous economic benefits to the affected area and support social integration through improved access to all economic, social and cultural centres in the country. The hardships in transportation of people and goods occur through poor accessibility and connectivity to main centres of development keep communities in isolation from each other, promoting an unhealthy social and political environment. 12. There are no indigenous people located in the vicinity of the road sections mentioned above or even in the districts of Jaffna.
9 ix V. INFORMATION DISSEMINATION, CONSULTATION AND PARTICIPATORY PROCESS 13. Information dissemination, consultation and participatory process involved with DPs and other stakeholders maintain transparency throughout the RP process. This openness reduces potential conflicts; minimize risk of project delays and help PMU to formulate resettlement and rehabilitation to suit the needs of DPs. VI. ELIGIBILITY POLICY 14. The entitlements for the Northern Road Connectivity Project-Additional Financing follows the already government and ADB approved entitlement matrix that was part of the Resettlement Framework of the original Northern Road Connectivity Project. The eligibility policy is to provide a comprehensive coverage for lost assets and restoration and/or enhancement of livelihoods for all categories of displaced people, whether affected directly, indirectly, permanently or temporarily, with or without titles, and tenants/lessees. For all lost lands and assets compensation will be at replacement cost. The project entitlement matrix is below: Table B: Entitlement Matrix Type of Losses Permanent Loss of land Loss of agricultural Land and loss of income sources /livelihoods based on land Entitled Person Entitlements Implementation Issues Land owner/ Title holder Tenant/ Sharecropper Land-for-land or cash-for-land and other assets lost at replacement cost. Shifting/moving allowance, if physically displaced. Livelihood/income improvement/restoration grant/skills and vocational training. Living allowance until livelihood or income sources are restored. Land registration expenses and taxes, if any. Cash payment for loss of standing crops at their market value Cash payment for the remaining portion in agreement with the land owner. Assistance in negotiating a new sharecropper agreement on another plot of land for Subsistence allowance for six months or until an alternate employment is found or given. Vulnerable persons have the priority for replacement land, based on needs. Special attention to orphaned children and widows to ensure their inheritance rights. Land titles may not be available. Provincial and District level land records and owner-identification processes such as community consultations will be used in case of land title is lost. Entitlements apply equally to both registered and unregistered tenants/sharecroppers. At least 30-day notice of land clearance Department of Agriculture will determine market value of crops and trees. Subsistence paid
10 x in cash and assistance to find new employment. Special budget built into resettlement budget. Loss of livelihood/ income Temporarily affected land (during construction) Business establishment Business establishment Loss of crops and trees (both temporary and permanent) Daily wage worker in agriculture or in non-agricultural enterprises including those at business establishments Land owner/title holder Owner Non-titled (squatter) owner Title owner and non-titled owner Subsistence assistance until alternate employment is found. Assistance in obtaining skill training and seed money to restore income/livelihood. Land rent during the temporary use of land. If displaced, shifting/moving assistance (as above) Replacement cost of land and commercial establishment without deduction for depreciation/salvageable materials. Shifting/moving costs. Replacement cost for structures without deduction for depreciation. Salvageable materials Moving/shifting allowance, if physically displaced. If sown or standing crops are damaged or uprooted, the cultivator of the affected crops will be compensated in cash at the mature crop value to be assessed on the basis of current market rates. Compensation for loss of fruit trees at market value, based on the Identification of daily wage workers is to done in consultation with local authorities and village leaders. Special budget is required Cut-off date to be publicized early. The land will be restored to its previous status or will be improved. Rent will be decided by MOHRD/RDA (in case of national road component) and NPC-NPRDD (in case of provincial roads) in consultation with DS and displaced persons. Estimated value of the business will be included in replacement cost. Workers entitlements to be worked out separately (see above) Support to find alternate land for business and settlement by EA/IAs. Estimated value of the business affected will be included in replacement cost. The value of trees or crops that will be affected by a subproject will decided by local agricultural offices in consultation with displaced persons. Owners will be
11 xi Loss of structures and immovable assets (including residential houses) Loss of structures and immovable assets (including residential houses) Owner titled or registered Non-titled (squatters) present income and crop bearing capacity. Compensation for structures/assets at replacement cost without deduction for depreciation/ salvageable materials. Moving/shifting allowance, if displaced. Replacement cost of structures they constructed, without deduction for depreciation. Salvageable materials belong to the establishment owner. Moving/shifting allowance, if displaced. given at least 30 day notice before removal. MOHRD/RDA (in case of national road component) and NPC- NPRDD (in case of provincial roads) will assist in finding alternate residential land, especially for vulnerable displaced persons. Budget for replacement Community structures and facilities Community EA/IA will rebuild community structures and facilities. Building of structures will be done in consultation with the affected community. 15. The completion date of Land Acquisition and Resettlement Survey (LARS) is the cut-off date. The cut-off date is May 25, VII. GRIEVANCE REDRESSES MECHANISM 16. The main objective of establishing GRM is to resolve problems in an efficient, timely and cost effective manner in a cordial environment with the participation of all stakeholders including affected parties. Under the GRM, it shall describe the options available to the project for grievance redress. Any environmental or social impacts that would be adversely affecting the general public in the project area should be resolved at the GRC. The complainant is encouraged to use the GRM, however, he or she can access the formal judiciary system at anytime. 17. The PMU is responsible for disseminating information on GRM to affecting parties and make sure the accessibility to the system. The grievance redress mechanism should also have an in-built monitoring mechanism to check on responsiveness to complaints or grievances lodged. The different forms of receiving the complaints should be clearly described together with the different stages of going through the process. In addition, the redress mechanism shall indicate alternatives, in case the proposed mechanism, for any reason, does not respond to all grievances and complaints.
12 xii 18. For effective functioning of GRC, it is necessary to develop awareness among stakeholders of the project on GRM and GRC. The General Public, Public Officers, Social Organizations, Contractors and Divisional Secretaries in respective areas should be knowledgeable in GRM and GRC in order to successfully implement the GRM. A two-stage GRM will be designed and implemented for the Project. Accordingly two (2) GRCs will be appointed for these two stages. The higher level GRC will be formulated at Divisional Secretariat level, while the lower level (ground level) GRC will be formulated at Grama Niladari Level (GN within each package). Each step should be completed in 4 weeks or less. VIII. RELOCATION OF HOUSING AND SETTLEMENTS 19. This project doesn t have to involve with relocation of housing and settlements elsewhere as all relocations and resettlement can be made at same premises of affected persons. Provisions have been detailed if relocation of housing and settlement arises from land acquisition during implementation stage. IX. INCOME RESTORATION AND REHABILITATION 20. At present only two private business units are operative from the eight private business units identified along project road; six of them do not have owners due to migration during the conflict situation. It seemed that when they were operative, they were managed with household labor. They were very small business units. The four business units operated under non-private property category do not involve with household affiliation, and they will be operative with suitable adjustments made within premises without making any breakdown to their business. For the two households, a vocational training grant has been allocated in the budget to help the households revitalize their business. There is no other income or relocation involvement to the remaining affected properties along the road side. They include one residential house abundant by the household, and 28 secondary structures of which only six HHs are available at respective sites. X. RESETTLEMENT BUDGET 21. Approximately $80,000 or SLR 9.8 million is the estimated resettlement cost for all compensation and assistance. XI. IMPLEMENTATION SCHEDULE 22. This RP is a simple straightforward plan, with an implementation period of 18 months. Its operation schedule consists of three main items: (i) statutory compensation, (ii) rehabilitation/reconstruction of damage secondary structures, and (iii) disbursement of statutory supporting allowances to ease inconveniences caused to affected people.
13 xiii XII. INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT 23. The overall implementing responsibility of the project lies with the GOSL. RDA being the IA for national road network has administrative responsibility for implementation of the project under the general supervision of the MP&H. Table C details the roles and responsibilities of project stakeholders Table C: Roles and Responsibilities of Project Stakeholders Agency / Unit RDA/ESD/PMU Ministry of Port & Highways Ministry of Land and Land Development Divisional Secretary Grama Niladhari Dept of Survey Valuation Department Government Printer Local Authority Displaced Persons/Affected Persons Construction Supervision Consultants Roles and Responsibilities Preparation of land acquisition proposals, staffing, coordination with other relevant agencies, consultation with stake holders, dissemination of information, secure funds, identify lands for resettlement with DPs, procure land for resettlement sites when necessary, develop infrastructure at resettlement sites, arrange income restoration projects. Attend to internal monitoring, progress review, Project MIS and documentation Submit proposals forwarded by the RDA/ESD to MOP&L, arrange for funds including reimbursement responsibility Approval for the publications of relevant orders under LAA. Acquisition of land, payment of statutory compensation, payment of interest, consultation, information dissemination, GRC, and vesting of acquired land with the RDA/ESD Support implementation of RP when necessary on PIA s/pmus request Support rehabilitation and improvement of public utilities disturbed by land acquisition and construction programme Delivery of notices under LAA to the DPs, consultation, facilitate acquisition of alternate lands, preparation of advance tracing and final plan by assisting the surveyors to identify the claimants, Preparation of required survey maps on the request of DS 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 Help in planning of resettlement site development, IRP Planning, monitoring construction and resettlements XIII. MONITORING AND REPORTING 24. RDA will conduct its own internal monitoring of RP implementation and will submit quarterly reports to MOP&H, and to ADB for review and information. External monitoring reports will be submitted quarterly reports during the first year of project implementation and twice a year from the second year.
14 1 A. Description of the Road Project I. PROJECT DESCRIPTION 1. The Asian Development Bank (ADB), together with the government of Sri Lanka will finance the Northern Roads Connectivity Project Additional Financing (the Project). The Project will take place in the Northern Province and North Central Province and will consists of rehabilitating 5 national highways and 14 provincial roads. The Jaffna-Pannai-Kaytes road national highway AB 19 is one of the roads that will be improved. AB 19 is located in Jaffna District in the Northern Province. The Northern Province was the worst conflict affected region in Sri Lanka. In general, the project area suffered severely by the ethnic conflict that prevailed over three decades. The conflict situation caused damages extensively to physical infrastructure, particularly to the road network, putting them in state of total disrepair. 2. AB 19 is the main road connectivity available for people living in Island North (Kayts DS Ddivision) and Island South (Velanai DS Division) located south of Jaffna, the capital of Northern Province. As per the Department of Census and Statistics, the population of these two DSDs was around 27,000 in 2001 (Enumeration of Vital Events, 2001, Dept. of Census and Statistics). The objective of improving AB 19 is to restore and improve accessibility of the people in the underserved Island North and Island South divisions to mainland of the country. The present poor road situation, in the absence of alternative road transport systems, cut off inhabitants of these islands from the main stream of country s socioeconomic life. 1. Project Profile 3. The main improvement planned on the project road is related to carriageway development to suit all weather conditions with proper bituminous surfaces to ensure undisturbed road use throughout the year. AB 19 will be a 2-lane road with 6.6 meter carriage way and 3 meter hard shoulders. The map of the project area and project road is in Figure 1.1. Figure 1.1 Project Location Diagram
15 2 2. Administrative Boundaries of the Road Project 4. The proposed project located in Jaffna district traverse through following divisions and Grama Niladhari Divisions (GNDs). District Jaffna Table 1.1 Administrative divisions traversed by project road Divisional Secretary Division (DSDs) Jaffna Velanei Kayts Grama Niladhari Division (GNDs) Jaffna Fort Kottadi Navanthurei South Allapidi Mankumban Velanei North East Valanei Saravanei East Saravanei West Karamban Karamban East Naranthanei South East Naranthanei Central Naranthanei North Naranthanei Kaytes Source: DS level socioeconomic profiles in project areas 5. The resettlement impact has been reported in six Grama Niladari Divisions of Velanei and Kayts DSDs. They are Karamban East, Kaytes, Naranthanei Central and Naranthanei North of Kayts DSD and Mankumban and Saravanei West of Velanei DSD. In Jaffana DSD, the project doesn t have negative impact to any as the areas passed by the road in this division don t have private settlements or services used by them. B. Objectives of the Resettlement Plan 6. The main objective of this RP is to provide a plan for mitigating of adverse effects caused by the land acquisition associated with the proposed road development project. RP aims at improving Displaced Persons (DPs ) own capacity to restore, if not improve their living conditions and livelihoods by paying their due entitlements appropriately and in a timely manner, and by assisting them in identifying options and opportunities for livelihood restoration. This RP is made with the use of information from preliminary feasibility studies based on the central line established during project feasibility studies, and subsequently reviewed with the availability of preliminary construction designs.
16 3 7. This RP is prepared with official commitment from RDA to mitigate adverse effects, and rehabilitate/improve lives of DPs affected by the project taking all fundamental principles related to involuntary resettlement in to consideration. The provisions made here for mitigating negative impact of the project is not limited to the impact identified for this exercise only. It also provides guidance for future actions to deal with any future case of negative impacts arising from any new land acquisition that can take palace due to changes of project designs or surfacing of any negative impact arising from this land acquisition. 8. This RP attempts to ensure that the land acquisition and resettlement impacts caused by the proposed road construction are identified, mitigated and compensated in accordance with the applicable legal enactments, policies and principles of the Government of Sri Lanka (GOSL). Special attention was paid to adhere to the policies and principles of the Asian Development Bank with the focus on its Safeguard Policy Statement (SPS, 2009). ADB is the funding agency of the project. NIRP (2001) is the key policy document of the GOSL on resettlement planning. RDA will hold prime responsibility for execution of the RP. C. Methodology 9. Resettlement planning process for the Project commenced in March 2012 and was completed on 25 May 2012, with the employment of a trained field survey team. The process included conducting of both resettlement assessment paying attention on all affected persons, and 20% sample survey on socioeconomic situation in the affected area. Prior to above surveys, consultative meetings were held between respective Divisional Secretaries/staff and the staff assigned with survey responsibilities. Additional public consultations sessions on land acquisition at DS level will have to be organised before and during the land acquisition process. In case of affected people, information was collected on individual basis for the analysis made here, except the people not available due to withdrawal from their properties during the time of ethnic conflict.
17 4 II. LEGISLATIVE AND POLICY FRAMEWORK 10. This chapter discusses the legislative and regulatory framework for land acquisition and resettlement and policies pertaining to resettlement. A. Legislative Framework 11. The Land Acquisition Act (LAA) of 1950 is the most important legal provision which Makes provisions for acquisition of the Lands and Servitudes for public purposes and provides for matters connected with or incidental to such provision. It provides the payment of compensation at market rates for lands, structures and crops. The Land Acquisition Act of 1950 was mainly influenced by the English Land Clauses Acts, and has evolved through Acquisition of Land Act 1919 and the Acquisition of Land Authorization Procedure Act 1946 to reach present status in Subsequently too, it has several amendments and the latest being the version of It has latest revised regulations made in 2008 by gazette notification No. 1585/ 7 on Tuesday, 20 January This is the premiere and oldest Land Acquisition Act in force today. 12. The revision made by gazette notification No.1585/7 on 20 January 2009 was an attempt to resolve public agitation prevailed over many years against the assessment of properties at lower values compared to prevailing market values. Mostly, this happened when acquired portions of land plots were taken as separate entities for assessment, they become economically less worthy as tinny land plots. Often, lands acquired for roads are small block separated from a large block of land. Now, for valuation purposes of these plots, market value of the parent plot from which a portion is acquired is taken in to consideration, and due proportionate value is given to the acquired portion too. This will have an upward movement of assessment for small land portions identified for acquisition. In addition, this revision gives provisions to consider replacement cost of buildings and cover variety of expenses incur to claimant in the process of changing his residence and businesses. Further, an owner of a house or of an investment property is displaced; additional 10% payment based on market value is also paid under this revision. This revision is a progressive step of the revision process of LAA and obviously NIRP has influenced the revision. 13. The operational procedures of the LAA (1950) are as follows; Preparation of acquisition proposal by the requesting agency and submission to the Ministry of Land and Land Development (MLD) through the Secretary of the Ministry under which the requesting agency is functioning. Approval of the proposal by MLD, posting of notices by the relevant divisional secretary/secretaries (as designated Acquiring Officer/s) and preparation of advanced tracing by the Dept. of Survey on the requisitions issued by relevant divisional secretaries (Section 2 of LAA).
18 5 If sec 38 (a) is not invoked, divisional secretary to proceed with Section 4 of the LAA to call objections from the interested parties in the land. Even after inquiring of the objections called under section 4, if the relevant land is required to be acquired, the requirement will be conveyed by the line ministry to the Ministry of Land and Land Development. Minister of Land then issues and orders under Section 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 directs the divisional secretary to take action to prepare the preliminary plans (PPs). Based on the Minister s order under Section 5, DS issues a requisition to the Superintendent of Surveys of the district to prepare and submit the plan. On receipt of primary plans (PP) from Dept. of Surveys,DS will published in Government gazette notification in all three national languages (Sinhala, Tamil and English) that he/she intends to conduct inquiries under section 9 of LAA and request people to submit their claims for ownership of land before the date mentioned 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. Then inquiries will be conducted to determine the ownership and DS will issue an order declaring ownership under Section 10 (i) of LAA. 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. 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. Then the possession will be taken over under Section 38 or in an urgent situation in made section 38 (a) even though the LAA permits to takeover possession before paying compensation any land acquired by the state. At present, possession of land is taken over only by paying compensation in full. This is a very positive outcome of the NIRP and SPS, 2009 of ADB. After taking over the possession DS will take action to vest the properties acquired under the name of relevant beneficiary/ies (RDA for road development) under section 44 ( ) of LAA and register the title with the registrar of the land of relevant district. 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; In the event of disputes over the determination of compensation, 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.
19 6 1. Land Acquisition Review Board 14. Under LAA, claimants were paid only the depreciated values for structures. Therefore a wide spread general opinion was developed indicating that compensation paid for land through LAA process is very much less than the prevailing market values. Under LAA any aggrieved party on the valuation determined by the Department of Valuation is expected to appeal to the Land Acquisition Review Board within 21 days of receipt of the Section 17 order from the Divisional Secretary. If party is dissatisfied with the decision of the Review Board, the party can made a petition of appeal to the Supreme Court. No stamp duty is charged for this appeal. However, experience showed that the process involved here was time consuming; moreover, in most occasions, variation between the assessment of the Dept. of Valuation and the review board s decision was very marginal. 2. Land Acquisition Resettlement Committee (LARC, Divisional Level) and Super LARC (Ministerial Compensation Appeal Board) Process 15. The revision made by gazette notification No.1585/7 on 20 th January 2009 to LAA, as stated above, has redundant the LARC review system as areas covered by LARC could be addressed by this revision. Further, Ministry of Land has issued clear instructions to cease the use of LARC and similar systems used by different institutions to decide compensation values for the land acquired under LAA as it wishes to see uniformity in valuation of lands acquired under LAA for public purposes. 3. Land Development Ordinance (1935) 16. 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 known as Swarna Boomi (golden land) or Jaya Boomi (victorious land). 17. 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 for any purpose. 4. 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).
20 7 19. 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. 20. 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 has been published, if land or other property is to be acquired, the procedures to do so are as set out in the LAA. 5. 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. As it is mentioned in section 22, the period of the grant 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. 6. Prescriptive Ordinance No 22 (1871) 22. Under sections 3 and 13 of this ordinance, households 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. 7. Other Acts and Laws related to acquisition and compensation 23. Following are the other subsequent statute laws, which enable the compulsory purchase of property for special purposes or have interfered with the compensation in the term of Market Value and has imposed certain restrictions, conditions and circumstances in which value has to be determined, when properties are compulsorily acquired by the State or become vested in the state, by the force of legislations on payment of compensation. Urban Development Authority Law No 41 of 1978 National Housing Development Authority Act No.17 of 1979 Greater Colombo Economic commission Law No.4 of 1978 Town and Country Planning Ordinance Of 1946 Land Reform Law No.1 of Land Reform Commission Act. No.26 of 1972 Colombo District (Low Lying Areas) Reclamation and Development Board Act No.15 of 1968 Rent Act No.7 of 1972 and amendments thereto, No.55 of 1980 and No.26 of 2002 Co-operative Societies Law No.5 of 1972
21 8 Ceiling on Housing Property Laws No1 of 1973 Apartment Ownership Law No.11 of 1973 Tourist Development Act No.14 of 1968 Coast Conservation Act Agrarian Services Act no.58 of 1979 Roads and Thoroughfares Act no.45 of 1956 and Law no.37 of 1973 Mahaweli Authority of Sri Lanka Act No.23 of 1979 Walawe Lands Act No.11 of National Environmental Act No 47 of 1980 (NEA) 24. 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. 25. The Minister by gazette notification No 858/14 of 23rd February 1995 has determined the types of projects and undertakings which need the approval under the terms of the NEA. The schedule includes item 12 which refers to involuntary resettlement exceeding 100 HHs, other than resettlement resulting from emergency situations. B. Policy Framework 26. 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. 27. 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 24th May The NIRP also highlights the need for consultation of DPs and their participation in the resettlement process actively. The Central Environment Authority (CEA) was tasked to review and approve Resettlement Plans (RPs) prepared by project executing agencies. The plans also required to be publicly available. 28. In addition to NIRP, ADBs Safeguard Policy Statement, 2009 have similar requirements and guidelines reinforcing each other. 1. National Involuntary Resettlement Policy (NIRP) The Government adopted National Involuntary Resettlement Policy (NIRP) in 2001, in order to address the adverse social and economic impacts on people who are affected by the
22 9 acquisition of land by the state for development purposes. The hardships encountered by displaced persons due to compulsory land acquisition often caused for severe deterioration in their social and economic life in intolerable manner. Further, the social unrests and miseries, created by these situations have negative impact on development and social order. Among these miseries, impoverishment of displaced HHs due to loss of land and livelihood opportunities, food insecurity, lack of access to common property and public services and disruption to existing social organizations were very noticeable. The development taking place without due consideration to resettlement issues of the displaced persons caused for loosing public interest and confidence on development. This led to grow public resistance for development which has very negative implications in the process of development. 30. The legislative enactments like LAA and other such provisions and regulations with their amendments are directed towards paying for compensation for land, structures and crops to lawful owners of such assets. These enactments don t have remedial measures for non-titled holders although they have been using these land in question over many years, perhaps a few generations. The consequences of land acquisition occurring to them are completely outside matters that have to be solved differently. In addition, apart from provision of funds for compensation payments, project execution agencies didn t have any responsibility for looking after the fate of displaced persons. Even, in the case of title holders, just receipt of compensation doesn t necessarily make them better off. At least majority of them need numerous assistances to restore their lives to pre project levels or to improve better. The nontitle holders need much more assistance to reinvigorate their new life with shelter, employment and social and economic infrastructure etc. 31. NIRP took these ill-effects of land acquisition in to consideration with the aim of ensuring that all efforts are made to minimize involuntary resettlement in projects and where it is unavoidable, affected people are assisted to re-establish their livelihoods (NIRP Forward). NIRP assign responsibility of implementing a Resettlement Plan addressing 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. 32. NIRP was developed thorough a consensus reaching process with the participation of all concerned government agencies and authorities; NGOs and foreign development agencies and other stakeholders. The steering committee appointed by the government reviewed the existing laws and policies and approved the National Involuntary Resettlement Policy on 5th March 2001 and the government of Sri Lanka adopted it (by cabinet approval) as a National Policy on 24 May 2001.
23 10 2. Objectives of the NIRP Avoid, minimize and mitigate negative impacts of involuntary resettlement by facilitating the reestablishment of the DPs on a productive and self-sustaining basis. The policy also facilitates the development of the DPs and the project by Ensuring 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; Ensuring that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purposes by the state; Assisting DPs in dealing with the psychological, cultural, social and other stresses caused by land acquisition; Making all DPs aware of process available for redress of grievances, which are easily accessible and immediately responsive; and Having in place a consultative, transparent and accountable involuntary resettlement process with a time frame agreed to by the project executing agency and DPs. NIRP applies to all development induced land acquisition and Resettlement Action Plan must be prepared where 20 or more HHs (NIRP Forward). NIRP requires that a comprehensive RP be prepared where 20 or more HHs are displaced. In case where less than 20 HHs are displaced, the NIRP still requires a RP with lesser level of detail. NIRP applies to all projects irrespective of source of funding. A detailed NIRP which include rationale, objectives, scope, policy principles, institutional responsibilities, monitoring and evaluation etc. are given in the Annexure I of this report. 3. Safeguard Policy Statement, 2009 of ADB 33. The ADB s Safeguard Policy Statement, 2009 (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: 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
24 11 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) landbased resettlement strategies when displaced 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. 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
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