Sri Lanka: Northern Province Sustainable Fisheries Development Project: Pesalai Fisheries Harbor Mannar

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1 Resettlement Plan July 2018 Sri Lanka: Northern Province Sustainable Fisheries Development Project: Pesalai Fisheries Harbor Mannar Prepared by the Ministry of Fisheries and Aquatic Resources Development and Rural Economic Affairs for the Asian Development Bank.

2 CURRENCY EQUIVALENTS (24 July 2018) Currency unit Sri Lanka rupee (SLR) SLR1.00 = $ $1.00 = SLR ABBREVIATIONS ADB Asian Development Bank AH affected household AP affected person CFHC Ceylon Fisheries Harbours Corporation DP displaced person GN grama niladhari GND grama niladhari division GRC grievance redress committee GRM grievance redress mechanism ha hectare LAA Land Acquisition Act MFARDREA Ministry of Fisheries and Aquatic Resources Development and Rural Economic Affairs ML Minister of Land MLD Ministry of Land and Land Development MRRNDHRA Ministry of Resettlement, Rehabilitation, Northern Development and Hindu Affairs NEA National Environmental Act NIRP National Involuntary Resettlement Policy PMU project management unit PPTA project preparatory technical assistance RDA Road Development Authority RP resettlement plan SPS Safeguard Policy Statement UDA Urban Development Authority NOTE In this report, "$" refers to United States 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. 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.

4 CONTENTS PROJECT DESCRIPTION... 1 SCOPE OF LAND ACQUISITION AND RESETTLEMENT... 3 SOCIOECONOMIC INFORMATION AND PROFILE... 7 A. Affected Persons... 7 B. Vulnerability... 8 CONSULTATION, PARTICIPATION, AND INFORMATION DISCLOSURE... 9 A. Project Preparation... 9 B. Project Implementation GRIEVANCE REDRESS MECHANISM A. GRM Levels and Composition B. GRM Operations C. Grievance Redress Process LEGAL FRAMEWORK A. Legislative Framework B. Policy Framework ENTITLEMENTS, ASSISTANCE, AND BENEFITS A. Valuation of Lost and Affected Assets B. Damages Caused During Construction C. Mitigation for Temporary Livelihood Disturbance D. Cut-off date INCOME RESTORATION AND REHABILITATION RESETTLEMENT BUDGET AND FINANCING PLAN INSTITUTIONAL ARRANGEMENTS IMPLEMENTATION SCHEDULE MONITORING AND REPORTING A. Section 2 Notices B. Section 3 Provision C. Section 4 Provision D. Section 5 Provision E. Section 6 Provision F. Section 7 Provision G. Section 8 Provision H. Section 9 Provision I. Section 17 Provision J. Section 22 Provision Appeals and Grievances K. Section 38 Order Takeover of Possession ANNEXES Annex 1: Letter from the Government Agent of Mannar Confirming that there are No Indigenous Community Living in the Coastal Area of Mannar District Annex 2: Minutes of the Consultation and Attendance with Fishermen in Pesalai on November 30, Annex 3: Minutes of the Consultation and Attendance with Fishermen in Pesalai on December 29, Annex 4: Leaflet Used During Consultations Annex 5: Summary of Land Acquisition Process in Sri Lanka... 50

5 Annex 6: Brochure Issued to Explain the GRC Mechanism LIST OF FIGURES Figure 1: Layout of Proposed Pesalai Harbor... 2 Figure 2: Proposed Site for Fishery Harbor Development in Pesalai... 4 Figure 3: Project Access Road... 6 Figure 4: Grievance Redress Process Figure 5: Project Organization Structure LIST OF TABLES Table 1: Land Acquisition... 4 Table 2: Affected Land Assets... 5 Table 3: Land Acquisition... 6 Table 4: Impacts on Affected Assets... 6 Table 5: Affected Households by Size... 7 Table 6: Affected Persons by Gender... 7 Table 7: Affected Persons by Age... 7 Table 8: Affected Persons by Education... 7 Table 9: Occupation of Affected Persons... 8 Table 10: Income Distribution... 8 Table 11: Stakeholders Consulted... 9 Table 12: Further Consultations Table 13: Consultation and Disclosure Activities Table 14: GRM Levels Table 15: LAA, NIRP, and SPS Table 16: Entitlement Matrix Table 17: Indicative Resettlement Budget Table 19: Roles and Responsibilities for RP Implementation Table 20: Implementation Schedule Table 21: Monitoring and Evaluation Indicators... 38

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7 PROJECT DESCRIPTION 1. The Project aims to sustainably increase fisheries production in the Northern Province through four outputs. 2. Output 1: Marine fisheries infrastructure developed. Two harbors in Point Pedro, Jaffna District and Pesalai, Mannar District; one anchorage in Jaffna District in Mandativu, and 23 landing sites (8 in Jaffna, 6 in Mannar, 6 in Mullaitivu, and 3 in Kilinochchi) will be constructed. 3. Output 2: Aquaculture developed. Detailed designs, construction and operational startup of artificial breeding production facilities, to provide the necessary seed stock for three target species. A sea cucumber hatchery with a production capacity of one million juveniles per year will be established in Mullaitivu; a mud crab hatchery with a production capacity of one million crablets per year will be established in Mannar; a sea weed tissue culture laboratory capable of producing 30,000-50,000kg of propagules will be established in Jaffna. The first coastal aquaculture training center in the country will also be established in Mannar district. 4. Output 3: Entrepreneurial skills, market links and credit access for local communities; and capacities of government officials strengthened. Of the 264 grama niladhari divisions (GND) that comprise the project area, following a ranking based on a vulnerability criterion developed, 141 GND s were identified for targeted support. Communities in these GNDs will be supported through: (i) provision of small-scale infrastructure and replanting of mangroves to support livelihoods; (ii) identification of potential livelihood opportunities based on market requirements and provision of training to develop relevant skills; (iii) improving and facilitating access to credit through greater awareness on available credit facilities and supporting preparation of documentation including business plans to access credit; (iv) supporting the establishment of three model enterprises in partnership with the private sector capable of generating employment opportunities for the community; and (v) provision of psycho-social trauma support for communities impacted due to the prolonged conflict.

8 2 Figure 1: Layout of Proposed Pesalai Harbor 5. Involuntary resettlement impacts are anticipated for Output 1. This resettlement plan has been developed for the Pesalai Fishery Harbor with the onshore facilities that include: (i) (ii) Berthing facilities to the vessels a. 150 IMUL (multiday) b day boats Additional facilities a. Net mending hall b. Auction hall c. Stores for outboard engines and fishing gear d. Community hall and canteen, radio room and fisheries inspector's offices e. Facility for SL Navy and Coast Guard and Sales Outlets f. CFHC Administrative Office g. Accommodation Facility and CFHC Storage h. Toilet and shower facilities i. Security facilities j. Wastewater treatment facilities k. Water supply l. Weighbridge and Control Room

9 3 m. Ice plant n. Ice/cold storage o. Fuelling Facility p. Slipway and Mechanical Repair Workshop q. Beacon lights, Leading Light and Marker Buoys r. Services (roads, lighting, etc.) 6. The harbor with above facilities will be fenced with secure access. The provision of the additional facilities will have resettlement impacts. 7. The fishery landing site in Pesalai located in the northern coastline of Mannar Island and the Silavatturai site located in the mainland coastline south of Mannar Island, have been identified by the Department of Fisheries and Aquatic Resources Development (DFARD) as possible locations for the development of Fishery Harbors in Mannar District. Pesalai was identified as the best site for a fully developed Fishery Harbor in the Mannar Island with the potential to accommodate IDAY and IMUL Boats. 8. The proposed site is located in the eastern part of the northern coastline of the Jaffna Peninsula. This would provide safe navigational access and shelter for fishing crafts throughout the year. The Site is situated in the administrative division of Pesalai North (MN-57) and Pesalai West (MN-55) which belongs to Grama Niladhari Divisions (GND) of Mannar Divisional Secretariat Division in Mannar District. The proposed project site falls in the local authority limits of Pesalai Pradeshiya Sabha. The site is easily accessible, and the Mannar-Thalai Mannar Road runs along the area. 9. Site selection and design considered minimizing resettlement impacts. The proposed habor boundary was shifter further northward to avoid damages to two houses and the Sri Lankan (SL) Naval detachment. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 10. Impacts from Harbor Development. The proposed harbour is in Pesalai North (MN-57) and Pesalai West (MN-55) GND of Mannar Divisional Secretariat Division in Mannar District. The harbor requires 7.50 hectares (ha) for onshore facilities. The proposed harbour is shown in Figure 2.

10 4 Figure 2: Proposed Site for Fishery Harbor Development in Pesalai 11. The project will use 5.34 hectares (ha) of government land (Coastal Conservation Department) and will acquire 3.52 ha from private owners. The balance will be reclaimed. Details of the land plots are in Table 1. Project Component Onshore facilities Onshore facilities *Claimants Land Ownership Private Undivided shares Costal Conservation Department Table 1: Land Acquisition Land Use Palmyra, Livestock Raising Area No of AH No of APs * 57 Vacant Through avoidance and minimization measures, land acquisition will not result in physical displacement as houses were avoided in site selection and design. The government land to be used is vacant, has no productive uses. 13. The privately-owned land is claimed by 20 households. The land has not been legally subdivided due to the previous conflict. All parties have reported to the Divisional Secretary and have claimed ownership. 1 This includes productive Palmyra trees which claimants earn income 1 Claims will be settled at the stage of Section 9 and Section 10 of Determination of Ownership Status of the Land Acquisition procedures. The Divisional Secretary either makes the decision on the claims or refers the claims to the district courts or primary courts if he is unable to determine ownership.

11 5 from. 2 The land also has a pigpen operated by one household with six affected persons (APs). The pigpen houses 25 pigs in a semi-permanent building with cement floors and a tin sheet roof. It has a bore-hole water supply. The land also has an abandoned slaughter house previously used by the Pesalai Pradeshiya Sabha. The slaughter house is a permanent building with cement floors and a tiled roof. The slaughter house has well water facilities. The land also has secondary structures such as boundary walls and wire fencing which will be affected. Affected land assets are listed in Table 2. Table 2: Affected Land Assets Assets No. Ownership Abandoned Slaughter House 1 Government Pig Pen 1 Private Fence 200m Private Bore-hole 1 Private Well 1 Private Toilet 1 Private Palmyra Trees 140 Private 14. Impacts from Access Road Widening. About 75-meter (m) of the access road to the proposed harbour site (Mannar-Thalaimannar) will be widened from about 5-m to 8-m (Figure 3). As a result, three titled affected households (AHs) will lose thin strips of land. The total loss per AH is about 75 square meters which is less than 10% of impacted plots. A summary of impacts is in Table 3. 2 Primarily through toddy tapping. Palmyra fruits are also collected and used to produce yam (oodiyal) for further income. The Palmyra leaves are also used as fencing material.

12 6 Figure 3: Project Access Road Project Component Land for access road widening Table 3: Land Acquisition Ownership of the Type of land Land Private Residential Affected Area 225 square meters AH AP The acquisition will not cause any damage to structures and service lines. However, the secondary structure of fence will be damaged. Details of impacts on the affected assets is in Table 4. Table 4: Impacts on Affected Assets Asset Meters Ownership Fence 250 Private Boundary Wall 50 Private

13 7 A. Affected Persons SOCIOECONOMIC INFORMATION AND PROFILE 16. A comprehensive socio-economic survey was conducted in December 2016 and updated in July 2017 to identify impacts on project-ahs. Twenty households are affected by onshore harbour facilities and three households will be affected by road widening. 17. Consultations show that private lands that fall within the acquisition boundary have not been sub-divided for a long time. The preliminary survey plan also confirmed and described the lots as undivided shares. During the socio-economic survey, children of claimants of the undivided shares came forward and were included in the survey. A total of 20 households are included in the survey. The RP will be updated after Section 2 notification and again after Section 9 notification (Annex 5). 18. The project area is in Pesalai North and Pesalai West GNDs which are semi-urban areas with populations of 1,339 and 1,160 persons, respectively. The survey shows that APs are Tamil Christians. The 20 AHs comprise 57 APs and the average household size is 2.85 which is considerably lower than the national average. There are more female than male APs. The breakdown of surveyed households and APs by gender is in Table 5 and Table 6, respectively. Table 5: Affected Households by Size Single Member 6 30% 2 Member 6 30% 3 Member 1 5% 4 Member 2 10% 5 Member 2 10% 6 Member 3 15% Table 6: Affected Persons by Gender Male Female 22 (38.6%) 35 (61.4%) 19. Almost all APs are of working age with only 5% under 19 years (Table 7). Most APs are above 60 years of age. The elder population continue to be productive, particularly since fishers generally do not retire unless they become disabled. School children are marginal (Table 8). AP educational attainment is considerable, likely facilitated by proximity to learning centers. Table 7: Affected Persons by Age 0-5 years 6-19 years years years years 60>years 0(0%) 3(5.26%) 13 (22.81%) 8(14.04%) 9 (15.79%) 24 (42.11%) Grade 1-V Table 8: Affected Persons by Education Grade VI- Ordinary Level Passed Ordinary Level Passed Advanced Level Undergraduates / Post graduates 2 (3.51%) 19(33.33%) 9(15.79%) 18 (31.58%) 9 (15.79%)

14 8 20. Fishing remains a traditional occupation of families in Pesalai village. APs depend only on fishing and government employment as primary sources of income. Unemployment is high and may be attributed to the slow growth of fishing industries and lack of employment opportunities (Table 9). Table 9: Occupation of Affected Persons Fishing Government Retired Housewife Unemployed Students 10 (17.54%) 9 (15.79%) 6 (10.53%) 14 (24.56%) 5 (8.77%) 5 (8.77%) Age above 60 3 (5.26%) B. Vulnerability 21. The project is not expected to have substantial impacts on APs. The main source of livelihood is fishing and government service. APs engaged in fishing may benefit from the project. Further, APs will not be physically displaced hence the land acquisition will not have impacts on government employees. 22. The largest impacts are in terms of lost income from supplementary income sources of APs. This includes income from a pig pen for one AH. The loss of Palmayra trees also result in lost supplementary income. 23. From the APs, potential vulnerable persons were examined against the following categories: (i) female-headed households with no regular income source (including widows and divorcees); (ii) households headed by the elderly (above 60) with no regular income sources; (iii) disabled heads of households who have no regular income source; (iv) indigenous persons;3 (v) persons living below the poverty line; and (vi) landless persons. 24. Based on survey results, three households are considered vulnerable. There are no disabled heads of households, and there are no IP, or landless households. The three vulnerable households are headed by an elderly female with no regular income sources. These women rely on their children who have their own households. All of them have incomes below the poverty line (less than SLR 5,000). Table 10: Income Distribution < SLR 5,000 SLR 5,001 to 10,000 SLR 10,001 to 20,000 SLR 20,001 to 30,000 > SLR 30,000 3 (15%) 3 (15%) 2 (10%) 5 (25%) 7(35%) 25. Table 10 reveals the income distribution of the AHs. The households which fall to 4th and 5th income group receive regular monthly income. The poverty level of the households falls into the first income category of less than SLR 5,000 and followed by the second category. 3 Indigenous people in Sri Lanka are called Vaddha. The proposed project does not have Vaddhas. The Government Agent of Mannar confirmed that there are no indigenous communities living in the coastal area of Mannar District (Annex 1).

15 9 26. The vulnerable AHs are entitled to receive a special grant of SLR 15,000 to support them during the disruption caused by land acquisition. Because the vulnerable APs are elderly, the project management unit (PMU) will assist the household that supports them (children s household) to participate in the livelihood component of the project or assist them in applying for project-construction employment. If vulnerable households lose trees, the project will provide coconut planting materials which the vulnerable persons can plant for supplemental income, in addition to providing replacement cost for the lost trees. CONSULTATION, PARTICIPATION, AND INFORMATION DISCLOSURE 27. Consistent with NIRP and ADB s SPS, meaningful consultation 4 will be undertaken. The main stakeholders consulted are affected persons, residents, fisher s societies, relevant government agency representatives, and local government officials. A. Project Preparation 28. The PMU and the project preparatory technical assistance (PPTA) team conducted consultations during project preparation. A summary is in Table 11. Annex 2 and Annex 3 provide details of these consultations. Table 11: Stakeholders Consulted Name Government Agent, Mannar Divisional Secretary, Mannari Colonization Officer, Divisional Secretariat, Mannar Director Planning, District Secretariat, Mannar Secretary, Pradeshiya Sabha, Pesalai Federation of the Fishermen Society Grama Niladhari, Pesalai Pesalai North and West. Affected Households Key Matters Discussed Project Information Project Information, Land Requirement, Land issues, Section II Notice, Alternative Land, Entitlement and Compensation, Consultation with APs Land Requirement, Land Issues, Section II Notice, Alternative Land, Affected Trees, Consultation with APs Land Requirement, Land issues, Section II Notice, Alternative Land, Affected Trees, Consultation with APs Land Requirement,Slaughter House, Future Approvals Harbour Design, Proposed Facilities, Benefits of Proposed Harbor, Land Requirement, Entitlement and Compensation Harbour Design, Proposed Facilities, Benefits of Proposed Harbor, Land Requirement, Entitlement and Compensation, Alternative Land Social Survey, Replacement Value, Harbour Design, Proposed Facilities, Benefits of Proposed Harbor, Land Requirement, Entitlement and Compensation, Alternative Land 4 Meaningful consultation is a process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

16 Further consultations and meetings were undertaken to ensure project information was shared. Details including participants are in Table 12. The leaflet used during the consultation is attached in Annex 4. Table 12: Further Consultations Date Meeting No. of Participants Initial Meeting Initial Stakeholder Consultation Stakeholder Consultation - Jaffna GA Stakeholder Consultation - CS/NPC Stakeholder Consultation - Mannar GA Inception Workshop at Jaffna Progress Review Meeting Midterm-review Mission - Progress Review Meeting Meeting with Pesali Fishers Meeting with Pesalai Fishermen Society Federation Meeting with Affected People Meeting with Fishers and Vendors Meeting with Fishers and Land Owners First GRC Meeting Separate consultations were conducted with the claimants of one private land parcel. They were shown the proposed harbour boundary on 13 March Land acquisition implementation were explained to the complainants. Claimants expressed that they would cooperate with the surveyors during the preliminary plan preparation, if they are informed in advance. The Divisional Secretary committed that they will be given notice. 31. Consultations were held with stakeholders at various stages during project preparation to discuss the project, its impacts, resettlement issues and potential mitigation, and to involve the community in developing the RPs. Views expressed were incorporated into the RPs. 32. The Sri Lanka Navy requested that the proposed boundary is shifted further westward to exclude the Navy detachment so that they could maintain the sea front and beach area. The design was changed accordingly. Three private house owners also made a similar request to avoid damages to their residences. A design change was similarly applied to exclude the three houses from the project area. 33. A grievance redress committee (GRC) was formed at divisional level on 13 March 2018 under the chairmanship of the Divisional Secretary. The method of lodging complains was explained to the APs. The brochure issued at the meeting is in Annex 6. B. Project Implementation 34. A framework for consultation and disclosure is detailed in Table 13 for continuing the process during implementation.

17 The information disclosure process initiated at the early stage of the planning focusing on the land acquisition process, payment of compensation, entitlements and other resettlement issues will continue with strong participatory elements till the end of the project. The information will be made available in the local language (Sinhalese and Tamil) in addition to the English version and to APs. The implementing agency will keep the APs informed about the impacts, the compensation and assistance proposed for them and facilitate addressing any grievances. The information will have to be available for the general public to study adequately. It will be displayed at public places such as Divisional Secretary Offices and Local Authorities to which APs have easy access. A copy of the draft RP has been disclosed on ADB s website. Updated and final RPs will have to be available for the general public to study adequately including in ADB s website. 36. Compensation/assistance to APs is required prior to commencement of civil works. Table 13: Consultation and Disclosure Activities Project Phase Activities Details Responsible Agency RP Updating RP Implementation Stage Supplemental surveys Formulating additional compensation and resettlement assistance measures Disclosure of updated entitlements and assistance Disclosure of final or updated RP Updated RP to be disclosed in local language though printed materials to APs particularly those who are vulnerable and other stakeholders. Conducting stakeholder consultations particularly APs in and reflecting issues raised in updated RP. Provision of updated RP to all stakeholders particularly APs. Conducting consultations and distributing local language versions of the updated summary RP. Review and approval of updated or final RP by MFARDREA. Review and approval of updated or final RP by ADB. Web disclosure of the updated or final RP. Resettlement specialist to conduct surveys. PMU and Participatory Development and GRC to disclose RP to stakeholders (including making it available in PMU offices and government agency offices), PMU to disclose on the web. PMU and Participatory Development and GRC, resettlement specialist PMU to disclose on the web. PMU and Participatory Development and GRC, resettlement specialist to conduct consultations. MFARDREA to provide ADB with updated or final RP for review and approval. PMU to disclose on the web. Consultation with APs during RP implementation Consultations with APs. PMU with resettlement specialist GRIEVANCE REDRESS MECHANISM 37. A project-specific grievance redress mechanism (GRM) will be established to receive and facilitate the resolution of affected persons concerns, complaints, and grievances on social and environmental issues.

18 The Land Acquisition Act (LAA) provides a limited GRM where certain grievances of displaced persons (DPs) relating to compensation can be referred to the Board of Review established under the LAA. The NIRP recommends the establishment of an internal monitoring system by project executing agencies to monitor the implementation of RPs in handling grievances. A person who does not agree with the decision of the Board of Appeal can go before the Supreme Court claiming higher amounts of compensation. The Appeal Board and the Supreme Court are in Colombo and may not effectively serve APs. 39. The multi-tiered GRM for the project is outlined below, each tier having time-bound schedules and with responsible persons identified to address grievances and consult appropriate persons at each stage. The objective of the GRM is to support genuine claimants to resolve their problems through mutual understanding and consensus building process with relevant parties. This is in addition to the available legal institutions for resolving issues. APs using the project GRM can choose to use legal systems at any point in the project GRM process. 40. Where an AP is not satisfied with the outcomes of the three tiers of the project GRM, the AP should make good faith efforts to resolve issues working with the South Asia Regional Department through ADB s Sri Lanka Resident Mission. As a last resort, the AP can access ADB s Accountability Mechanism (ADB s Office of Special Project Facility or Office of Compliance Review). 5 The information on how to make a complaint can be found at internet site A. GRM Levels and Composition 41. The proposed GRM is implemented through three levels. Committees are formed by administrative directions of the MFARDREA. The three levels are in Table 14 below: Table 14: GRM Levels 1. National- level GRC Formed at MFARDREA this will function as an apex body of the GRM system, mainly to hear appeal cases coming from operational level GRCs, and to provide policy and regulatory support to operational level GRCs. 2. Divisional- level GRC Divisional Secretary-level GRCs will handle issues not resolved at the sitelevel. 3 Site-level APs have access to approach the project contractor, site engineer of PIU and consultant particularly on construction and site-specific issues. 1. Project Site-Level 42. The site-level grievance team comprises: (i) (ii) (iii) PIU Site Engineer Contractor s Site Representative Supervision Consultant s Representative 5 Contract information on ADB s Sri Lanka Resident Mission is in Information on ADB s Accountability Mechanism is in

19 APs may approach the above staff at the site. Information will be disseminated so that APs will know the contact details of the site grievance team. The team will record all issues raised in a GRM site logbook and provide reports on grievances to the PMU. If issues are resolved directly between the affected person and the team, the resolution is recorded in the GRM site logbook and no follow-up is required. If it is not resolved, the AP can escalate the issue to the Divisional-level GRC. 2. Composition of the DS-level Grievance Redress Committee 44. The DS-level GRC will include members who understand local-issues and mixes government and non-government representatives who will aim to reach consensus on issues raised by APs. Issues not resolved at the site can be raised by the AP for GRC action. The AP should lodge complaints at the DS-level GRC through the Divisional Secretary office, with copy to the PIU. Complaints brought to either Grama Niladhari (GN) Office, the Construction Site or at the office of the Assistant Director of Fisheries or Fisheries Inspector will also be entertained. The GRC will meet within two weeks of being informed of a complaint and should resolve the complaint within two weeks of meeting. The GRC members are: (i) Divisional Secretary of the Area Chairperson (ii) Representative of PIU Secretary (iii) Assistant Director (Department of Fisheries)/Fisheries Inspector Member (iv) Grama Niladhari Member (v) Representative of Supervision Consultant Member (vi) Representative of Contractor Member (vii) Representative of Fishermen s Cooperative Society Member (viii) Representative of Women s Rural Development Society Member (ix) Representative from AP/Affected Entity Nonvoting Member 45. GRC meetings will be held at the Divisional Secretary office. The APs will be informed seven days prior to the meeting. The Secretary of GRC is responsible for coordinating with all members and the AP. The Secretary will also keep all records and generate reports for the GRC. Decisions will be relayed by the Secretary to the AP. Where issues are not resolved, the AP will be informed, and the issue will be forwarded by the Secretary to the National-level GRC within seven days of the decision. The Secretary will coordinate with the National-level GRC to schedule a meeting and keep the AP informed. 3. Composition of the National-level Grievance Redress Committee 46. The GRC will be based at the Ministry Fisheries and Aquatic Resources and chaired by the Secretary/Additional Secretary of the Ministry or a designated. The serves as the apex body for the GRM. The Project Director will serve as the committee Secretary to the committee. The committee consists of: (i) Secretary of the Ministry Chairperson (ii) Project Director Secretary (iii) Representative of Ministry of Resettlerment Member (iv) Representatives from National Fisheries Federation Member (v) Representative from AP/Affected Entity Nonvoting Member

20 14 B. GRM Operations 47. GRM awareness is critical in resolving grievances in a timely manner. Awareness should be raised for stakeholders including the public, concerned government officials, concerned local authorities, contractors, civil society organizations. Awareness raising should include: (i) (ii) (iii) (iv) (v) (vi) GRC levels, purposes of the different levels and how they can be accessed for: e.g., construction-related grievances, grievances related to physical and economic displacement, Types of grievances that cannot be resolved by the GRM, Eligibility to access the GRM, How complaints can be reported to the GRCs: to whom, e.g., phone, postal and addresses, and websites of the GRCs as well as information that should be included in a complaint. Procedures and time frames for initiating and concluding the grievance redress process; boundaries and limits of GRM in handling grievances; and roles of different agencies such as project implementer and funding agency. Any system to appeal against the decision of GRC. 48. Similarly, an effective awareness program should be arranged to inform the APs on the following: (i) (ii) (iii) (iv) (v) Members of GRC and its location Method of complaining or reporting the grievance Taking part in the GRC meeting (if any companions of the complainant allowed) The steps of resolving process and timeline adopted in this mechanism Needed documents and evidence to support of the complaint 49. A variety of methods can be adopted for communicating information to the relevant stakeholders. These methods could include display of posters in public places such as in government offices, project offices, community centers, hospitals, and health clinics in the area. 50. Information should be presented in a simple brochure as a basic document on the GRM. A draft brochure is attached in Annex 6. A straight forward public leaflet giving exact information on GRM and GRCs with its scope and working arrangements will help avoid misconceptions, over expectations and ambiguities on GRM and GRCs. However, public awareness requires continued information disclosure. C. Grievance Redress Process 51. The project-specific GRM process for APs is shown in Figure 4:

21 15 Figure 4: Grievance Redress Process 52. The GRM will not impede the APs decision to use the legal system at any time. A. Legislative Framework LEGAL FRAMEWORK 53. The Land Acquisition Act (LAA) of 1950 is the principal law 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 for the payment of compensation at market rates for lands, structures and crops. It has several amendments, the latest being the version of Regulations were also made in 2008 by Gazette Notification No. 1585/7 (20 January 2009). This regulation aimed to address assessment of properties at lower values compared to prevailing market values. This happened when acquired portions of land plots were taken as separate entities for assessment, they become l ess economically v al uabl e as very small land plots. F or ex am p l e, land acquired for roads are u s u a l l y small block separated from a large block of land. For the valuation of these plots, t h e market value of the parent plot from which a portion is acquired is taken into consideration, and due proportionate value is given to the acquired portion. The revision a l s o gives provisions to consider replacement cost of buildings and cover a variety of expenses in the process of changing his residence and businesses. If an owner of a house or of an investment property is displaced,

22 16 an additional 10% payment based on market value is also paid under this regulation. This regulation is a progressive step towards the revision process of LAA and is consistent with NIRP. 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. (i) 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 (ii) secretaries If immediate possession is not required on grounds of urgency (section 38(a), 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. (iii) Minister of Land then issues an order 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 act to prepare the preliminary plans (PPs). (iv) Based on the Minister s order under Section 5, Divisional Secretary issues a requisition to the Superintendent of Surveys of the district to prepare and submit the plan. (v) On receipt of primary plans (PP) from Dept. of Surveys, DS will publish 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. (vi) Then inquiries will be conducted to determine the ownership and DS will issue an order declaring ownership under Section 10 (i) of LAA. (vii) 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. (viii) Acquiring officer (Divisional Secretary of the area) who holds an inquiry into the market value of the land, the claims for compensation and the legality of claimants (advised by valuation officers) makes an award of compensation under section 17 of LAA. (ix) Then the possession will be taken over. even though the LAA permits to take over possession before paying compensation under section 38 (a), on 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 act to vest the properties acquired under the name of relevant beneficiary/ies under section 44 (1) of LAA and register the title with the registrar of the land of relevant district. (x) (xi) In the event of disputes over the determination of compensation, it may be appealed (section 22) to either the Compensation Review Board or Court of appeal within 21 days (section 23) of the receipt of the notification of the award. If there are no appeals, the compensation will be paid. 1. Land acquisition review board

23 Under LAA (sections 22-23) 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 (section 25) of the Review Board, the party can make a petition of appeal to the Supreme Court. No stamp duty is charged for this appeal. 2. Land Development Ordinance (1935) 55. 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. 6 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). 3. State Land Ordinance No 8 of The ordinance explains the land grants which can be made and the rents to be obtained for the grants. The period of the grant may 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 crown land must appeal to the Government Agent of the area. Such person must pay the rent decided by the Land Commissioner or the Government Agent of the area. 4. Prescriptive Ordinance No 22 (1871) 57. 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. 5. Other Acts and Laws related to Acquisition and Compensation 58. The 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 Town and Country Planning Ordinance of 1946 Land Reform Law No.1 of Land Reform Commission Act. No.26 of 1972 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 Ceiling on Housing Property Laws No1 of 1973 Tourist Development Act No.14 of 1968 Coast Conservation Act 6 There are two categories of occupants in 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.

24 18 Agrarian Services Act No.58 of 1979 Roads and Thoroughfares Act No.45 of 1956 and Law No.37 of National Environmental Act No 47 of 1980 (NEA) 59. 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 Minister in charge of the subject of environment has prescribed projects and undertakings which approval shall be necessary under the provisions of the NEA. 60. 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 61. 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. 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 APs and their participation in the resettlement process. 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. 1. National Involuntary Resettlement Policy (NIRP) NIRP was developed thorough a consensus building 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 5 March 2001 and the Government of Sri Lanka adopted it (by Cabinet Approval) as a National Policy on 24 May 2001.The objectives of the NIRP are to: avoid, minimize and mitigate negative impacts of involuntary resettlement by facilitating the re-establishment of Displaced Persons on a productive and selfsustaining basis; ensure that Displaced Persons are fully and promptly compensated and successfully resettled; the livelihoods of any displaced persons should be re-established and their standard of living improved; ensure that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purposes by the State;

25 19 assist Displaced Persons in dealing with the psychological, cultural, social and other stresses caused by compulsory land acquisition; make all Displaced Persons aware of processes available for the redress of grievances that are easily accessible and immediately responsive; and have in place a consultative, transparent and accountable involuntary resettlement process, with a time frame agreed to by the project executing agency and Displaced Persons 63. NIRP applies to all development induced land acquisition and a Resettlement Action Plan must be prepared where 20 or more HHs. 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. 2. ADB Safeguard Policy Statement, 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. 65. There are three important elements of ADB s Safeguard Policy Statement 2009: (i) avoid involuntary resettlement wherever possible; (ii) minimize involuntary resettlement by exploring project and design alternatives; (iii) enhance, or at least restore, the livelihoods of all displaced persons 7 in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. 66. SPS (2009) has the following principles: i. 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. ii. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation 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 7 In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

26 20 resolution of the affected 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. iii. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv. 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. v. 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. vi. 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. vii. 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 nonland assets. viii. 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. ix. 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 affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

27 21 xi. xii. 11. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 3. Existing gaps in LAA and NIRP vis-à-vis SPS 67. There are differences between LAA and the NIRP, and SPS in relation to the approach to land acquisition and payment of compensation. Although the SPS and NIRP are close, there are differences when compared with the LAA and SPS. Even though the LAA is not subordinate to the NIRP, the payment of compensation the NIRP and SPS are being followed. The gaps in the LAA vis-à-vis the NIRP and the SPS are analyzed in 6.1. Table 6.1. LAA, NIRP, and SPS, 2009 Aspect GOSL Laws /Policies ADB s SPS Measures to Bridge the GAP Avoid involuntary resettlement wherever possible Although there are provisions in the LAA and the NEA that could have the effect of minimizing IR by exploring project and design alternatives. Such minimization is not explicitly cited as an objective of such provisions. Also, The Land Acquisition Act of 1950 (LAA) does not address mitigating the impacts of involuntary resettlement. Involuntary resettlement should be avoided as much as possible by reviewing alternatives to the project as well as alternatives within the project. Involuntary resettlement should be avoided or reduced as much as possible by reviewing alternative to the project as well as alternatives within the project. Requirement of RP The LAA as amended does not require a resettlement plan. The NIRP requires that a comprehensive RP for projects exceeding displacement of more than 20 HHs and a RP of lesser detail if the number of HHs displaced is less than20. A project affecting 100 HHs are considered as a prescribed project under the NEA; such project requires the approval of the CEA before implementation but does not address the resettlement issues. RP is required for category A and category B projects. PMU follows the NIRP which spell out the type of RP to be prepared and implemented

28 22 Compensation For non-title holders Provided in the NIRP, Not in the Act (LAA and its regulations) The borrower will compensate them for the loss of assets other than land such as dwellings and also for any other improvements to the land at the full replacement cost. The entitlements will be provided to those who have occupied the land or structures in the project area prior to the cut- off date for eligibility or resettlement assistance. Provision is available in the entitlement package to make fair and just treatment as per 2008 regulations. Consultation stake holders with The EIA process under the NEA and section 4 of the LAA provide for prior disclosure of the intention to acquire land for a public purpose and provide limited opportunities for affected people and others to comment on an EIA and submit objections and their concerns. Consultation is required with displaced persons (Same as NIRP) PMU follows the NIRP and ADB-SPS 2009 as indicated in the RP. The NEA and the LAA do not require that consultation: continues on an ongoing basis throughout the project cycle; is carried out in an atmosphere free of intimidation or coercion; is gender-inclusive and tailored to the needs of vulnerable groups; and enables the incorporation of relevant views of affected people and other stakeholders into decision-making. Under Section 4 of the LAA only affected persons, as defined under the Act, may make objections. The section does not provide for consultations with affected persons (other than owners and those with a legal right to possession), host communities and concerned nongovernment organizations. Under the proviso to Section 38 of the LAA, the Minister is empowered to take possession

29 23 of any land on the grounds of urgency, without giving any person (including the owner) an opportunity to be heard. Under the NEA, any member of the public may make comments on the IEE or EIA and thereafter may be heard in support of his comments. However, an IEE or an EIA must address issues connected to involuntary resettlement only when a project affects more than 100 families. Under the UDPA, the President can, where a particular land is required for an urgent, urban development project, make a declaration to that effect, without giving any aggrieved person a right to be heard or to any relief in a court of law. The only redress for such person is compensation or damages.it is a requirement under NIRP Public disclosure Provided in the NIRP, Not required under the LAA as amended. If the project is subject to an IEE or EIA, the report should be available for the information of the public or public comments respectively. Public disclosure is required RP will be disclosed to the public and will be available in the website of ADB and the Ministry. The entitlement matrix will be translated into local language and circulated to DPs. Income Restoration LAA does not have provisions. But NIRP stipulates the necessity of income restoration and improving the standard of living. Income should be restored PMU follows the NIRP and ADB-SPS 2009 as indicated in the RP. Taking over possession before Payment of compensation Act provide, NIRP does not allow Does not allow PMU follows the NIRP and ADB-SPS 2009 as indicated in the RP. Grievance Redress Mechanism The Land Acquisition Act of 1950 provides a multi-tiered grievance redress mechanism for claims to compensation and compensation awards, which can be taken up to the courts of law. But there is no grievance redress mechanism for Requirement under the SPS,2009 Provided in the RP

30 24 grievances other than those concerning compensation.. it s a requirement under the NIRP Acquisition within 48 hrs. on an urgency basis; Payment of compensation and other entitlements before physical or economic displacement i.e. compensation by instalments The LAA provides a regular procedure for acquisition and an expedited procedure to be utilized in the event of urgency. Under 38(a) Proviso of LAA, immediate possession of land can be taken over by the government. But according to NIRP land can not be acquired without paying replacement cost and reasonable notice. However, NIRP does not supersede the LAA since it is a statutory act. But in order to provide relief to the displaced people, NIRP is being implemented on a directive by the Cabinet of Ministers of the GOSL; LAA provides statutory compensation to be paid in installments, but NIRP does not agree. The borrower /client will ensure that no physical or economic displacement will occur until i) compensation at full replacement cost has been paid to each displaced person, ii) other entitlements listed in the RP have been provided to the APs, and iii) a comprehensive income and livelihood rehabilitation program supported by adequate budget is in place for the APs Legal framework should require that all compensation and other resettlement entitlements be paid prior to physical or economic displacement, including under any expedited procedure for land acquisition. PMU follows the NIRP and ADB-SPS 2009 as indicated in the RP. Replacement Cost The LAA enables land-based resettlement or cash compensation. Affected persons decide whether they prefer compensation in land or in cash. Under Section 36(1) of the LAA, any person having an interest in the land to be acquired may enter into an agreement to accept any other land in lieu of compensation. At full Replacement Cost PMU follows the NIRP and Cabinet approved entitlement matrix. Under the Act, there is no correlation between loss of land and loss of livelihood and as such the grant of land in lieu of compensation under Section 36(1) is not geared towards the restoration of livelihood. Under the LAA, monetary compensation at market value is granted irrespective of whether the acquisition undermines livelihood. The 2008 Regulations provide for assessing market value for cash compensation, but not

31 25 Assistance for vulnerable people replacement value. NIRP, replacement cost according to regulation gazette on 20, January2009. LAA and its regulations are silent on this Aspect. NIRP requires special treatment for the vulnerable groups. Source: NIRP, Safeguard Policy Statement 2009 and LAA. SPS 2009 requires a special assistance for the vulnerable people. Provision is Available in the RP ENTITLEMENTS, ASSISTANCE, AND BENEFITS 68. The entitlement matrix based on the above policies provides a detailed description of specific compensation measures and assistance applicable to each category of AP. Unforeseen impacts will also be compensated in accordance with the principles of the resettlement plan. A detailed description of compensation measures and assistance is provided in the entitlement matrix (Table 15). APs who settle in the affected areas after the cut-off date will not be eligible for compensation. However, they will be given sufficient advance notice prior to project construction. A. Valuation of Lost and Affected Assets 69. Land acquisition and resettlement impacts will be compensated in accordance with the entitlement matrix. As per the policy adopted for this project, all compensation for loss of land, structures, and other assets will be based on full replacement cost. 70. LAR 2008, issued under Section 63 (2) (f) of LAA 1950 came into effect on 17 March 2009 provides for statutory payments of compensation. It provides compensation beyond market value by incorporating compensation for injurious affection and severance (equivalent to the full cost of damage based on the market value of land acquired), and disturbances (in terms of Section 3.11, principle based on the value to owner of the property affected as per the written claims submitted by the AP) (Gazette notification No.1596/12 of ), and permitting for reconstruction cost calculation without depreciation and valuation for the whole plot of land for determining proportional unit cost for the affected land parcel, business losses, relocation assistance etc. It also provides for the APs to be entitled for a hearing before land being acquired. However, the compensation due to affected parties will be determined by the valuation department. The Regulations stipulates minimum time periods for specific tasks, elements and the procedures for land acquisition. 71. Replacement cost for land or affected structures or income losses will be determined by the Department of Valuation. 72. Replacement cost of acquired or damaged structures and other immovable properties/assets will be determined on the basis on market cost of materials to build a replacement structure with an area or quality similar or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site plus any labor and contractor s fee. All costs will be current for the period of actual replacement. Depreciation of assets should not be taken into account consistent with ADB s SPS 2009 as well as the NIRP.

32 Compensation for trees will also be based on the current market value of timber for timber trees, the annual net product market value multiplied by remaining productive years for perennial and fruit trees as finalized by the Department of Valuation in consultation with relevant horticultural authorities. 74. All compensation and assistance will be paid to APs prior to displacement or commencement of construction activities in sections ready for construction. In cases where claims have not been decided at the time of scheduled construction, all compensation and assistance will be escrowed with the District Court. However, regardless of the claims procedures compensation for development cost of structures will be paid prior to construction. The executing agency will provide satisfactory evidence to ADB of payment of compensation and assistance (or escrow as applicable) prior to commencement of civil works in the respective sections of a project.

33 27 A. Land A1 Partial / complete loss of land Table 15: Entitlement Matrix Type of Loss Entitled Persons Entitlements Justification for Payment Responsibility Owner with title or deed registration certificate All payments for land and structure in cash at full replacement cost (provisions under LAA and Regulations 2009). Additional allowances A self-relocation allowance of SLR 500,000 for acquisition of total land or a proportion of 500,000 for partial acquisition. Plus, the cost of re-establishing water and electricity connections (if existing in land acquired). Payment for lost assets, assistance to reorganize on existing land Assist all APs who appear for Section 9 inquiry to offset the expenses they have to bear in obtaining claim/ valuation reports, title reports and traveling expenses etc. MFARDREA, DS, CV An allowance not exceeding SLR 10,000 would be paid to each AP who appears for Section 9 inquiry. B. Structures and Other Private Properties B1 Partial or complete loss of structures and other private property (including secondary structures (i.e. well, boundarywall, toilet) Owners of structures (regardless of the ownership of land) Cash payment for affected structure at replacement cost as recommended by CV without depreciation. Payment for loss and relocation if required. MFARDREA, CV,Divisional Secretary 27

34 28 Type of Loss Entitled Persons Entitlements Justification for Payment Responsibility C. Trees with Timber Value and Standing Crops C1 Loss of Palmyra trees Person who owns Palmyra trees (regardless of the ownership of land) D. Additional Assistance to Vulnerable APs D1 Impacts on vulnerable DPs/APs (i) female-headed households with no regular income source (including widows and divorcees), (ii) households headed by the elderly (above 60) with no regular income sources, (iii) disabled heads of households who have no regular income source, (iv) indigenous persons, (v) persons living below the poverty line, and (vi) landless persons. An advance notice to harvest shall be displayed at GN office and informed to AP by GN in advance. However, where harvesting is not possible a net value of trees based on market prices. A special grant of SLR 15,000 per household to improve living standards of vulnerable DPs and households. Vulnerable households losing Coconut planting materials will also be provided with saplings in addition to the replacement cost of the trees. Where the vulnerable AH has household members, the PMU will assist the household member to participate in the livelihood component of the project or assist them in applying for project construction employment. Payment for trees calculated on market value on the basis of land productivity, type, age, and productive value of affected trees. The Divisional Secretary will be assisted by the Valuation Department and the Palmyra Development Board in determining the compensation for Palmyra trees. Assistance, over and above payment for lost assets, to reduce impacts of resettlement which can disproportionately affect the already vulnerable and to ensure that the project does not simply re-establish levels of vulnerability or marginalization. MFARDREA, CV, DS, GN MFARDREA, DS. 28

35 29 Type of Loss Entitled Persons Entitlements Justification for Payment Responsibility E. Unanticipated Adverse Impacts E1 Any unanticipated adverse impact due to project intervention Any unanticipated consequence of the project will be documented and mitigated based on the spirit of the principles agreed upon in this policy framework. 29

36 30 B. Damages Caused During Construction 75. Contractors are expected to be vigilant to avoid damages to public and private property during construction work. If any damage does occur to public and private property as a result of construction work, the contractor will immediately restore damaged land and structures including any common property resources affected. If restoration is not initiated within a week of damage, and at a committed timeline agreed by those affected, the Contractor will pay replacement cost. Anticipated temporary impacts on land and structures will be compensated through rental rates agreed prior to construction and all land and structures will be restored to pre-project level. C. Mitigation for Temporary Livelihood Disturbance 76. The project component will not cause temporary livelihood disturbances to fishers. This is because the proposed site is away from existing fishing areas. Project construction will not impact on fishers beach access required for fishing. 77. For the pig pen owner, the PMU will ensure that compensation is provided, and the AH is able to reestablish a new pig pen and move his livestock, prior to dismantling the existing pigpen. In this regard there will be no livelihood disturbance for the AH. Vulnerable households losing Palmyras will also be offered Palmyra saplings in addition to the replacement cost of trees. D. Cut-off date 78. Eligibility for entitlement is the date of publication of the Section 2 notice under LAA for titleholders. This cut-off date is normally the date of serving Section 2 of the LAA. It is a public statutory announcement informing the claimants and public about the acquisition going to be affected. 79. The particular section [48, subsection (f)] of LAA reads as any outlay or improvement made or commenced on the land after the notice under Section 4 in respect of the land was given or exhibited unless such outlay or improvement was reasonably for the purpose of maintaining or preserving the land or plantation, building fixture, or machinery thereon;. 80. As such APs can attend to needy improvements until properties are valued for compensation under above reasonable grounds. The relevant Local Authorities will be requested, through the concerned Divisional Secretaries to refrain from granting approvals for new constructions within the project area after the Cut-Off-Date. INCOME RESTORATION AND REHABILITATION 81. The potential impacts on income are limited and temporary and measures to mitigate these limited impacts are explained in paras 76 and There is potential for local employment during construction particularly in the following: (i) Light vehicle drivers (ii) Bar benders (iii) Computer operators (iv) Clerks (v) Office Aides (vi) Laborers 83. The PIU will assist vulnerable household members access construction employment. 30

37 31 RESETTLEMENT BUDGET AND FINANCING PLAN 84. The land acquisition and resettlement cost are indicative. It will be updated based on final design and valuation at replacement cost by the Department of Valuation (10.1.A Notice from the Acquiring Officer). Cost estimates for lands, structures, and trees acquired or affected were prepared based on the prevailing rates in the project area. This was based on Divisional Secretary, GN officers and from APs in the area. Contingencies are provided for in the cost estimate for changes in prices and quantities, and will also cover transport cost and other cost provided for under LA The cost estimate also includes support cost for RP implementation The full budget will be provided by the government through the MFARDREA. Statutory compensation based on LAA will be paid to APs. The estimates will become available only after the Survey Department and Chief Value determine the value of land, houses, crops and trees affected. The cost estimates also special assistance limited to the project. 86. The disbursement of cash compensation to project APs for land and other property losses and damages will be done by the Division Secretariats in the project areas. The approved amount will be deposited by the MMDE in the Divisional Secretariat accounts and the disbursement will be done by the divisional administration. The MFARDREA will bear the total cost of land compensation, housing, relocation, and income restoration and improvement programs. The payments will be made in cheques which will be deposited in APs accounts by the Divisional Secretariat. 87. Full cost of resettlement (indicative) is estimated to be SLR 34.7 million (Table 16). This is not the final cost as the calculation is made based on assumptions and the final cost will be calculated upon final design and estimation by the contractor and upon final valuation. Table 16: Indicative Resettlement Budget Item No Item No. Unit SLR/unit Total SLR Compensation for land Private lands-harbour site 3.52 ha 3,200,000 11,260,160 Private lands-access road 9 perch 200,000 1,800,000 Subtotal 13,060,160 Compensation for structures Slaughter house 1 200, ,000 Pig Pen 1 300, ,000 Bore hole 1 150, ,000 Well 1 75,000 75,000 Toilet 1 25,000 25,000 Fence for private land 225 linear meter 2, ,000 Boundary wall 50 linear meter 12, ,000 Subtotal 1,800,000 Loss of trees of private individuals Palmyra 140 unit 10,000 1,400,000 Subtotal 1,400,000 8 This has been calculated on a lump sum basis which includes cost for updating the RP, cost for monitoring and administrative cost (staffing requirement, vehicle hire, grievance redress, carrying out consultation). 31

38 32 Allowances Appear for Section 9 inquiry Travelling support 23 unit 10, ,000 Vulnerable allowance Mitigating support to overcome 3 hardship caused by acquisition person 15,000 45,000 Coconut plants to Mitigation measure to income loss 3 Vulnerable HH for vulnerable HH unit 100 3,000 Self-Relocation Relocat and establish allowance facilities 23 unit 500,000 11,500,000 Subtotal 11,778,000 Support and Implementation Cost Support GRC Assist individuals who wish to seek mechanism GRC assistance 50 unit 10, ,000 Updating of Draft RP 1 lump sum 250, ,000 Monitoring and Reporting 20 quarterly 50,000 1,000,000 Documentation 1 lump sum 500, ,000 Sub total 750,000 Total 28,788,160 Administrative cost 0.5% 143,941 Contingency 20% 5,786,420 Grand Total 34,718,521 INSTITUTIONAL ARRANGEMENTS 88. The Ministry of Fisheries and Aquatic Resources Development (MFARDREA) is the Executing Agency for NPSFDP. The project implementing agency for output 1 and 2, will be MFARDREA and the implementation agency for output 3 is the Ministry of Resettlement, Rehabilitation, Northern Development and Hindu Affairs (MRRNDHRA). The Project Management Unit (PMU) is located in the MFARDREA. The PMU will be supported by two project implementation unites (PIUs) established in Northern Province. PIU1 under MFARDREA is for implementation of outputs 1 and 2 activities, and PIU2 is for implementation of output 3 activities which will be under the MRRNDHRA. The PMU together with PIUs will prepare a time-bound program through a planned set of interventions agreed upon by concerned authorities. The PMU is the focal institution responsible for RP implementation at the operational level. PMU and PIUs should be strengthened a provided a certain degree of financial autonomy and administrative flexibility subject to the guidance and supervision of the MFARDREA/MRRNDHRA and directives of the General Treasury. For safeguards implementation, a Safeguards Consultant will be engaged at the PMU level whose tasks include building PMU and PIU capacitites in implementing resettlement. The PMU Safeguards Manager has already been engaged and has worked with project preparation consultants and ADB staff on resettlement for the project. Once engaged, the PMU Safeguards Consultant will conduct a trainor s course on resettlement implementation for the PMU Safeguards Manager and PMU Social Development/Resettlement Specialists so that these PMU staff can conduct required training for other stakeholders. 32

39 33 Figure 5: Project Organization Structure Northern Province Sustainable Fisheries Development Project: Project Management Structure Northern Provincial Council Chief Secretary MFARD Secretary MPRRRHA Secretary Provincial Project Steering Committee NAQDA CFHC CC&CRMD DFAR PMU Project Director (PS 1) National Project Steering Committee PMU Sub-Office NP Deputy Project Director (PS 2) Project Coordinator (part-time) ( PS 2) PIU Manager (PS 3) District Secretaries REPPIA Officials DFAR Officials NAQDA DOs M&E Specialist (PS 3) Procurement Specialist (PS 3) Manager Finance (PS 3) Administrative Officer (PS 3) Manager Safeguards (PS 3) Manager Aquaculture (PS 3) Manager Infrastructure (PS 3) Gender Specialist Training Specialist Engineer Procurement Officer M&E Officer (PS 4) Technical Officer, 4 nos Procurement Assistant (PS 5) Accountant (part-time) (PS 4) Divisional Project Coordination Committee Project Secretary (PS 6) Procurement Assistant (PS 4) Accountant, 2 nos (PS 4) Engineer, 4 nos Quantity Surveyor Technical Officer (PS 4) Environmental Officer, 3 nos Communications Officer Social Development/ Resettlement Specialist (PS 4) Gender Program Officer, 4 nos Community Development Officer, 15 nos (PS 5) 89. Table 17 below summarizes the roles and responsibilities of project stakeholders on preparation and implementation of the resettlement plan. Table 17: Roles and Responsibilities for RP Implementation Activity Responsibility Approval Establishment of PMU and PIUs MFARDREA Cabinet of Ministers; Secretary, MFARDREA: MSD Engage Project Management Safeguard Consultant to PMU I. Finalization of sites for sub-projects. II. Disclosure of proposed land acquisition and sub- project details by issuing public notice. III. Coordination with other relevant agencies. IV. Preparation of land acquisition proposals. V. Conducting consultations. PMU-PD PMU Safeguards Unit and Consultant PMU/Secretary, MFARDREA: MSD NSC consultation with ADB in 33

40 34 VI. Establish GRC and conducting regular meetings. Submit proposals to MOLLD, arrange for funds including reimbursement responsibility I. Conduct census and social surveys II. Prepare and update RP based on detail design III. Assist conducting consultations and GRC sittings PD/PMU, PMU Safeguards Unit and Consultant PMU Safeguards Unit with PMU Consultants and Detailed Design Team Secretary, MFARDREA PD/PMU consultation with ADB Review, approve and disclose Updated RP ADB/PMU ADB/PD Prepare an implementation action plan agree with ADB Preparation of the publications of relevant orders under LAA. PMU Safeguards Unit and Consultant DS/GN, PD/PMU, and Consultant Delivery of notices under LAA to the APs, consultation. PMU Safeguards Unit with the support of DS/GNs Preparation of required survey maps on the request of Divisional Secretary Preparation of condition reports of the properties to be acquired, preparation of valuation reports. Acquisition of land, payment of statutory compensation, payment of interest etc. Consultation, information dissemination, GRC, and vesting of acquired land with the MFARDREA. Publication of gazette notifications relevant to land acquisition Public disclosure of social safeguard documents (translated RP, and action plan) Conduct awareness campaigns in local communities Awareness of contractors on resettlement issues of sub projects Monitoring of the implementation of community consultation and participation action plan, community outreach under GRM Preparation of QPR, SMRs Dept. of Survey, DS, and PMU Valuation Department, DS, and PMU Valuation Dept, DS, and PMU PD/PMU, DS, and Consultant Government Printer, and PMU PMU Safeguards Unit PMU Safeguards Unit and Consultant PMU Safeguards Unit and Consultant PMU Safeguards Unit and Consultant PMU Safeguards Unit and Consultant ADB/PD Secretary, MOLLD MOLLD, PMU in DS, DS, Dept. of Survey Valuation Department, DS Divisional Secretary DS/PD/PMU Government Printer, MOLLD,PD PD/PMU PD/PMU PD/PMU PD/PMU PD/PMU 34

41 35 Complaints and grievances handling PMU Safeguards Unit and Consultant, GRM PD/PMU 35

42 IMPLEMENTATION SCHEDULE 90. The Project will be implemented for a 5-year period from 2018 to The RP implementation schedule will vary from subproject to subproject. In general, the project implementation will consist of the three major phases, namely project preparation, land acquisition and rehabilitation of APs. In line with the principles laid down in this RP, the executing agency and implementation agency will ensure that project activities are synchronized between the RP implementation activities as well as the subproject implementation. The EAs and IAs will ensure that no physical or economic displacement of displaced households will occur until: (i) compensation at full replacement cost has been paid to each DP for project components or sections that are ready to be constructed; (ii) other entitlements listed in the RP are provided to the DPs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by adequate budget, is in place to help DPs, improve, or at least restore, their incomes and livelihoods. Furthermore, all RPs will be revised during detailed design, and the updated RPs will be approved by government and ADB and disclosed prior to implementation. An indicative implementation schedule with key tasks is provided in Table 18. Table 18: Implementation Schedule Activity Month Update Resettlement Plan (RP) Public consultation Disclosure of RP Co-ordination with district administration for LA Obtaining approval of RP from ADB Submission of LA proposals to DC Payment of compensation Taking possession of acquired land Notice to DPs/ Nontitleholders Notify the date of start of construction to APs Permission to contractor to begin works through written confirmation to ADB from MFARDREA upon complete payment of compensation/assistance to APs Handing over the acquired land to contractor to start civil work Internal monitoring of overall RP Implementation Grievance redress

43 The implementation of operational procedures of the LAA (1950) are as follows: (i) 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. (ii) 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 Department of Survey on the requisitions issued by relevant divisional secretaries (Section 2 of LAA). (iii) If Section 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 into the objections called under Section 4, if the relevant land is required to be acquired, the requirement will be conveyed by the line ministry (MFARDREA) to the Ministry of Land and Land Development. (iv) Minister of Land then issues order 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 primary plans (PPs). (v) Based on the Minister s order under Section 5, the Divisional Secretary issue a requisition to the Superintendent of Surveys of the district to prepare and submit the plan. vi. On receipt of PP the Divisional Secretary will publish 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 Divisional Secretary in all three languages for information of the stakeholders. (vi) Then inquiries will be conducted to determine the ownership and Divisional Secretary will issue an order declaring ownership under Section 10(i) of LAA. viii. 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. (vii) Acquiring officer (Divisional Secretary of the area) holds an inquiry in to 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. (viii) Then the possession will be taken over under Section 38 or in an urgent situation in made Section 38(a) even though the LAA and its regulations permits to take over 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 Divisional Secretary will take action to vest the properties acquired under the name of relevant beneficiary/ies under Section 44 (i) of LAA and register the title with the registrar of the land of relevant district. (ix) 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;

44 38 (x) 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. MONITORING AND REPORTING 92. RP monitoring will be the responsibility of the executing agency/implementation agency. The PMU Safeguards Unit and a safeguards consultant will provide necessary technical assistance, monitor RP implementation and report on a quarterly/monthly basis to PMU on the progress of resettlement activities. 93. The PMU will be responsible for managing and maintaining Affected Persons databases, documenting results of Affected Persons census and verifying asset and socioeconomic survey data, which will be used as the baseline for assessing RP implementation impacts. Resettlement monitoring will involve ensuring that implementation is on schedule and problems are dealt with on a timely basis. Socioeconomic monitoring including income restoration and improvement during and after any resettlement impacts, utilizing baseline information established during socioeconomic surveys. Overall monitoring is to assess the socio-economic status of APs. If any deviations from resettlement loan covenants or safeguard principles are reported in monitoring reports. The PMU will submit reports on resettlement progress to ADB for review. 94. The report will also document consultations conducted with APs and summaries of issues identified and actions taken to resolve them. It will also provide a summary of grievances or complaints lodged by APs and actions taken to redress them and the specific activities conducted to restore and improve income sources and livelihoods of APs. 95. Table 19 provides details on monitoring. Indicators are established to ensure attainment of the RP s objectives. The various indicators and benchmarks will be monitored by internal monitoring mechanisms: Monitoring Aspects Delivery of Entitlements Table 19: Monitoring and Evaluation Indicators Potential Indicators Entitlements disbursed, compared with number and category of losses set out in the EM. Disbursements against timelines. Providing alternative landing site for the loss of beach access Consultation and GRM Consultations organized as scheduled including meetings, groups, and community activities. Knowledge of entitlements by the APs. Use of the grievance redress mechanism by the APs. Information on the resolution of the grievances. Number of consultation meetings (for both men and women). Percentage of women out of total participants.

45 39 Communications and Participation Budget and Time Frame Number of meetings exclusively with women. Number of meetings exclusively with vulnerable groups. Level of participation in meetings (of women, men, and vulnerable groups). Level of information communicated adequate or inadequate. Information disclosure. Translation of information disclosure in local language. Land acquisition and resettlement staff appointed and mobilized on schedule for the field and office work. Achieving resettlement implementation activities against the agreed implementation plan. Fund allocation for resettlement to agencies on time. Receipt of scheduled funds. Funds disbursement according to the resettlement plan. 96. The project will provide training to selected staff in resettlement issues, social survey methods and data analysis and recording. The consultant in performing this role will support them. 97. Indicators, shown in Table 19 above, will be monitored internally by PMU. This information will be collected from the project site and documented, in the form of a monthly progress report, to assess whether resettlement is effective. Recommendations for changes will be made, where necessary and reported to the PMU. 98. Monthly progress reports will be prepared by the PMU, reporting actual achievements against targets and reasons for shortfalls, if any. The PMU will be responsible for managing and maintaining DPs databases, documenting results of DPs census and verifying asset and socioeconomic survey data. This be used as the baseline for assessing RP implementation impacts. The PMU will submit semi-annual monitoring reports on resettlement progress to ADB for review.

46 Annex 1: Letter from the Government Agent of Mannar Confirming that there are No Indigenous Community Living in the Coastal Area of Mannar District

47 Annex 2: Minutes of the Consultation and Attendance with Fishermen in Pesalai on November 30, 2016 Project Title: Client: Northern Province Sustainable Fisheries Development Project Project Preparatory Technical Assistance Ministry of Fisheries Funding Agency : Asian Development Bank (ADB) Purpose of Meeting: Meaningful Consultation with fishermen Pesalai Contract Number: TA 9049 Date: Venue: Pesalai Church Hall Participants: (List of Participant is attached) A. Description of the Meeting 1. The Divisional Secretary of Pesalai welcome the gathering and briefed the purpose of the meeting. He requested the PPTA team to briefly explain the proposed harbour project to the participants. 2. The resettlement specialist and the environmental specialist of the PPTA team explained about the proposed fishery harbour project in Pesalai. The team initially explained the technical features of the proposed intervention and distributed the leaflet for further understanding. 3. The resettlement specialist explained about the ADB SPS 2009 to protect the people from negative impacts due to the implementation of the proposed interventions. At the same time the environmental specialist described the environmental safeguard measures during the construction and post construction stages. 4. The following social and economic benefits of the proposed intervention also highlighted to the participants: (i) (ii) (iii) (iv) (v) (vi) Expansion of deep sea fishing Modern fishing technologies Protection for fishing vessels Availability and expansion of available services Income growth Livelihood development

48 42 (vii) (viii) (ix) (x) Land value Area development Easy access to market the harvest Direct and indirect employment opportunities 5. The resettlement specialist pointed out that the intervention of the development needs land and the design included many offshore facilities to minimize land requirement. However, all the facilities cannot be located on offshore such as fuel, ice plant storage, auction hall etc. Under this circumstance approximately 4.5 hectare of onshore land is required. As per the design, state and few private land have been identified for location these facilities. The resettlement specialist assured that the private land acquired for this project will be compensated as per ADB SPS and Government regulations. 6. The resettlement specialist suggested for site visit after the meeting. The Divisional Secretary asked the fishermen to join the visit and agreed to provide the list of affected people due to land acquisition. The Divisional Secretary asked the fishermen to express their views about the proposed fishery harbour in Pesalai. 7. The participants of the meeting informed that except 20 boat-owners others are engaging fishing with small boats. They questioned that whether they have facilities to anchor small boats and traditional boats in the proposed harbour. The resettlement specialist informed this project also identified anchorages and landing sites to develop to cater the requirement of small boat owners to continue fishing without any disturbances. The fishermen raised their concerns over the distance and storages facilities of fishing equipment at the developed anchorages and landing sites. 8. The secretary of the Pesali Fishermen Co-operative Society informed that they have to encounter lot of difficulties due to the arrival of fishermen from other parts of the country. The resettlement specialist said since the harbours are the national assets of the country, all the license holder has had rights to get the services of any fisheries harbours in the Island. He added that the fishery harbours are managed by CFHC and take care of the services of the fishermen and resolves any issues regarding the operation of the harbour. 9. The secretary of the fishermen society further requested that the fishermen society should be an integral part of the operation of the proposed harbour. He said at present the fishermen society providing fuel and other limited services to the fishermen and the fishing boats. The society use the income for social benefits including the following: (i) (ii) (iii) (iv) Providing loan facilities to fishermen Conducting preschool with 60 children and three teachers Education assistance to poor children Training program to women on fish processing and sea food preparation 10. The secretary of the fishermen society requested that the proposed harbour should not block whole the income of the society and put an end to social service. The Deputy General Manager of the CFHC explained that the CFHC will be a regulatory body for the fishing harbours operating all over the island. The Harbour Development Committee of the harbour including all the stakeholders of the harbours to resolve any issues regarding the operation of the harbour. The representative of the fishermen society is the chairman of the committee and the Harbour Manager is the secretary of the committee. Harbour development committee is to help Harbour

49 43 management to resolve the problems & issues and play the role of mediator between management & the stakeholders. 11. The Deputy General Manager of CFHC pointed out that the fuel facilities provided by the CFHC and other facilities should be taken care of the fishermen society. They can use the allocated space for providing services at nominal government rent. Harbour berthing charges will collect by CFHC. Vessel licencing is the responsibility of the Department of Fisheries. Harbour accommodates only registered vessels with the Department of Fisheries. 12. Reverend Father of Pesalai Church also expressed his views. He said Pesali is a fishing village and the major livelihood of the village is fishing industry. He pointed out that the Christian values and culture are the tradition of the village and also in Mannar. Rev. Father requested that the proposed harbour should not have any negative impacts to the local tradition. He also validated the statement made by the secretary of the Pesali Fishermen Co-operative Society. Rev. Father also suggested for signing a MoU between the Rev. Pesali Fishermen Co-operative Society and the Ministry of Fishery to ensure the matters emphasized at the meeting. The fishermen participated in the meeting welcome the suggestion. 13. The participants like to see the function of a modern harbour in South. The Resettlement Specialist said the exposure visit could be arranged during the detailed design phase. The Deputy General Manager of CFHC suggested that Beruwella and Dickowitha are the best example to see the function. 14. The fishermen participated in the meeting raised their concern over the proposed breakwater structure in the design. They said the proposed design for breakwater is not adequate to protect the vessels. They suggested that the entrance for vessels should be sideward and cover protection from wind and wave. The Resettlement specialist said the suggestion will be consider during the detailed design stage and further consultation will be arranged in this regard. 15. The Resettlement specialist explained that the project will look into the livelihood aspect of the vulnerable families in the prioritized GNDs. Special attention will be given to women headed families to strengthen their income earning capacity. The fishermen participated in the meeting appreciated the livelihood development proposals and the fishermen also requested for loan facilities to purchase multiday boats. 16. Finally, the divisional secretary thanked all the participants and request the participants to join a site visit after the meeting, with this the meeting adjourned.

50 44 B. Attendance

51 45

52 46 Annex 3: Minutes of the Consultation and Attendance with Fishermen in Pesalai on December 29, 2016 Project Title: Client: Northern Province Sustainable Fisheries Development Project Project Preparatory Technical Assistance Ministry of Fisheries Funding Agency : Asian Development Bank (ADB) Purpose of Meeting: Consultation with Affected Land Owners Contract Number: TA 9049 Date: Venue: Pesalai Beach Participants: (List of Participant is attached) A. Description of the Meeting 1. The Grama Niladhari (GN) of Pesalai welcome the gathering and briefed the purpose of the meeting. 2. The Resettlement specialist explained about the proposed fishery harbour project in Pesalai. The Resettlement specialist pointed out that the intervention of the development needs land and the design included many offshore facilities to minimize land requirement. However, all the facilities cannot be located on offshore such as fuel, ice plant storage, auction hall etc. Under this circumstance approximately 4.5 hectare of onshore land is required. As per the design, state and few private land have been identified for location these facilities. The Resettlement specialist assured that the private land acquired for this project will be compensated as per ADB Safeguard Policy and Government regulations. 3. The Resettlement specialist explained about the ADB Social Safeguard Policy to protect the people from negative impacts due to the implementation of the proposed interventions. At the same time the Environmental Specialist described the environmental safeguard measures during the construction and post construction stages. 4. The land owners explained that the entire land belongs to one family and the five siblings of the family are the current owners of the land. At the same time another eight individuals also claimed part of the land. Both claimants informed that the land dispute is hearing in Mannar District Court.

53 47 5. The claimants of the land said the land is not legally subdivided for a long time due to prevailed situation. However, they use the Palmyra trees for toddy tapping and earn income. Palmyra fruits also collected and use to get yam. Palmyra yam gives good income to the families. The Palmyra leaves also use for fencing purposes. 6. Finally, the Resettlement specialist thanked all the participants and request the participants to join a site visit after the meeting, with this the meeting adjourned. B. Attendance:

54 48

55 Annex 4: Leaflet Used During Consultations 49

56 50 Annex 5: Summary of Land Acquisition Process in Sri Lanka 1. The Land Acquisition Act of 1950 (LAA) and its amendments specify the process of acquisition of lands in which the privately-owned lands belong to individuals as well as organizations. The steps of the land acquisition procedure are given below and indicate an extended time frame for completion. The long period of time for completion of acquisition of a land plot can lead to delay of the construction programs, due to consultation of various stakeholders such as survey department, valuation department, divisional secretary, Grama Niladharis (GN) etc. Following flow chart illustrates the various steps of acquisition process under the LAA.

57 51 A. Section 2 Notices 2. The institution (MFARDREA PMU) prepares an application indicating the features of the land which should be acquired for the specific purpose in the given format by the Ministry 3. Then the MFARDREA will make a request on land acquisition to the ML. When the necessary request is received, the Minister of Land Development directs the Acquiring Officer of the respective Divisional Secretary s division in which the land to be acquired, to issue under Section 2 of LAA to the respective land owner. This notice gives legal authority to the officers to enter the said land and do the survey of the land and other necessary official duties. The Section 2 notice publicizes at the land as well as other prominent places in the area. The notice: (i) (ii) Is in three languages, Sinhala, English and Tamil. Specifies how claimants can make the objection for the acquisition of said land. 4. In the meantime, the Acquiring Officer issue a Section 2 survey requisition to the Superintendent of Survey (SS) of the survey department of respective district. Then the SS assigns a surveyor to do the surveying the land. The appointed surveyor visits the particular land and commences the surveying with the assistance of GN. Prior to the visit of surveyor, the GN informs to the land owner about the date of survey. The surveyor follows the boundaries of each land lot to be acquired with the assistance of GN. The following details are recorded by the surveyor: (i) (ii) (iii) (iv) Name of land owner Name of occupant Ownership status Nature of the land (high land or paddy land) 5. After surveying the land, a plan of the land is prepared, called advance tracing. This gives all details such as extent of the land, ownership status, boundaries etc. This plan is sent to the divisional secretary as well as the ML by the survey department B. Section 3 Provision 6. This is a provision for the making claims by the owners of the land due to any damage caused during the survey or publishing the notices at the land. C. Section 4 Provision 7. This is a provision to make the objection against the acquisition of land. Any person who has a right to the land can make an objection to the secretary of MFARDREA or ML. Under this provision notice issued by the ML call for any objections against the land acquisition, which is published in the government gazette as well as in newspapers in three languages.

58 52 D. Section 5 Provision 8. Once the objection(s) are received, against the acquisition, the Secretary holds an inquiry to ascertain the facts behind this request and makes his recommendation to the ML whether the particular land plot(s) should be acquired or not. Based on the recommendation of the secretary of the MFARDREA, the Minister of Land and Land Development takes a decision on the matter. The minister can reject or accept the recommendation of the secretary. However, Minister has the authority to stop the acquisition on reasonable grounds. E. Section 6 Provision 9. Under this provision, the acquiring officer issues a survey requisition to the survey superintendent for the preparation of the final plan of the land. When superintendent of survey receives a survey requisition, he issues an order to his survey team to prepare a final plan of the land. If necessary, the survey team visits the particular land again. The plan is then finalized, based on advance tracing and the additional surveys (if conducted). F. Section 7 Provision 10. The acquiring officer issues a notice under Section 7 which indicates that the property is under consideration for acquisition. The notice includes the following details: (i) (ii) (iii) (iv) Description of the land to be acquired Reasons for acquisition Claims for compensation to be made to Acquiring Officer Direct every person interested in the land to be acquired to appear personally or by an agent duly authorized in writing before the acquiring Officer. The nature of interest for the land, particulars of his claim for compensation, the amount of compensation and the details of compensation of such amounts should provide by the claimant/s. 11. The claimant can make verbal or written claims to the acquiring Officer G. Section 8 Provision 12. An order is made by the acquiring officer to the person/s who have ownership for the land and whom should produce the income statements of earnings of the land. H. Section 9 Provision 13. The acquiring officer conducts an inquiry under the provision of Section 9 for the determination of ownership of the land paying special attention to the land ownership deeds and other relevant documents. At this stage, ownership is determined by the Acquiring Officer and a decision is made. The base on the outcome of the inquiry a notice is issued that determines the owner/s of the land. This notice is issued under the provision of Section The ownership determination letter is prepared in triplicate, sent to the owner/s, valuation department and placed on file. When the letter received, the Valuation Officer visits the property and prepares a condition report in which all details of the said property is recorded. Based on

59 53 condition report, he prepares a valuation report (determination of valuation) which he submits to the Acquiring Officer. Valuation is determined, based on the instruction of 2009 regulation, and includes compensation entitlements as given below: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Replacement value for the structure Market value for the land, trees and crops Cost for attending Section 9 inquiring Cost for selection of alternative sites Cost for transportation to new sites Cost incurred for publicity of commercial establishments Cost for fixing of furniture Cost for traveling where relevant Cost for loss of business Cost for working capital for reestablishment of business Cost for assessment tax and rent Cost incurred by claimant for acquisition of land I. Section 17 Provision 15. When the valuation report is received, the acquiring officer prepares a compensation award letter to be sent to the owner/s of the property with a copy to the compensation appeal board. After receiving the compensation award letter owner/s can accept or reject the entitlements. If rejected, within 14 days an appeal may be made for higher compensation to the appeal board within. Otherwise the entitlement may be accepted. J. Section 22 Provision Appeals and Grievances 16. If the claimants are dissatisfied over the compensation, an appeal to the Board of Review under Section 22 may be made. However, this is a time-consuming process. Therefore, all possible steps should be taken to resolve the issue under grievance redress mechanism (GRM) of the project. There may be ownership disputes occur among the number of claimants for one property. GRM also resolves this type of dispute. K. Section 38 Order Takeover of Possession 17. When the compensation paid, the acquiring officer informs to the ML for the issuance of Section 38 orders, in which the acquiring officer is empowered to take over the possession of the land on behalf of the MFARDREA and PMU. When the acquiring officer receives a Section 38 order, the relevant person/s giving are informed and given 14 days prior to possession of the land. At this stage the acquiring officer takes possession of the land and transfers to the nominated officer of the MFARDREA.

60 54 Annex 6: Brochure Issued to Explain the GRC Mechanism

61 55

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