GOVERNMENT OF SAO TOME AND PRINCIPE PASS RESETTLEMENT POLICY FRAMEWORK (DRAFT REPORT 1/19/2004) ALKA KOTHARI Government of Sao Tome and Principe Resettlement Policy Framework PASS TABLE OF CONTENTS Page No. A. Introduction and Project Description 4 B. Principles and objectives governing resettlement preparation 9 and implementation C. A description of the process for preparing and approving 10 Resettlement plans D. Eligibility criteria for defining various categories of project affected persons 13 E. Methods of valuing affected assets 14 F. A legal framework reviewing the fit between borrower laws and regulations 15 and Bank policy requirements and measures proposed to bridge any gaps between them G. Organizational procedures for the delivery of entitlements 20 H. A description of the implementation process 22 I. A description of the grievance redress mechanisms 24 J. A description of the arrangements for funding resettlement, including the 26 preparation and review of cost estimates, the flow of funds, and contingency arrangements K. A description of mechanisms for consultations with, and participation of, 30 affected and/or displaced persons in planning, implementation, and monitoring L. Arrangements for monitoring by the implementation agency and, 32 if required, by independent monitors 2 Government of Sao Tome and Principe Resettlement Policy Framework PASS Glossary of Key Terms · Cut - off Date ­ refers to a day on and beyond which any person who occupies land required for project use, will not be eligible for compensation. The date is often the day when the assessment of persons and their property in the project area commences. · Market rate ­ is defined as the highest rate over the last three to five years based on commercial terms. · Project Affected Person(s) (PAPs) ­ are persons affected by the land use or acquisition needs of project supported activities that lead to these person(s) being required to (or not necessarily required to) be physically displaced or relocated due to loss of shelter and or, lose, denied or restricted access and or to economic assets, or lose income sources or means of livelihood, whether or not the person(s) must move to another location. · Resettlement and Compensation Plans (RAPs), are also known as Resettlement Action Plans or Resettlement Plans ­ are resettlement instruments (documents) to be prepared when project activities are identified , that require land acquisition that leads to physical displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, denial or restriction of access to economic resources. RAPs are prepared by the party impacting people and livelihoods in this manner and contain specific and legal binding requirements to be taken by that party to resettle and compensate the affected party before project activities causing this adverse impact are implemented. · Resettlement Policy Framework (RPF), is also a resettlement instrument (this document) that is prepared by the borrower (in this case by the Government of Sao Tome e Principe) when project activities that require land acquisition that lead to physical displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, denial or restriction of access to economic resources, are not identified at the project preparation stage. The RPF is therefore prepared and disclosed before the proposed project is appraised setting out the resettlement and compensation principles, organizational arrangements and design criteria to be applied to meet the needs of the people who may be affected by the project, when project activities are identified. The RAP is prepared consistent with the provisions of the RPF. 3 Government of Sao Tome and Principe Resettlement Policy Framework PASS B. INTRODUCTION and PROJECT DESCRIPTION The Government of Sao Tome has requested support for the preparation and financing of the Social Sector Support Project (PASS). The development objective of the proposed Social Sector Support Project (PASS) is to improve the delivery of basic health and education services, for greater access and equity, better quality through more efficient and effective institutions. To this end, the PASS will be implemented through the public sector and civil society organizations to enhance greater collaboration between public sector institutions and civil society in addressing the health and education needs of the population. The project supports the government's Poverty Reduction Strategy and the national strategies for Health, Education, Malaria and HIV/AIDS. The proposed PASS also supports the Bank's Country Assistance Strategy. The project consists of three domains: Domain A aims at improving access and quality to basic education services; Domain B aims at improving access and quality to basic health services; and Domain C aims at addressing HIV/AIDS and Malaria. The components within each domain consist of (i) policy reforms and capacity building for more effective institutions; (ii) improving equity and access; and (iii) enhancing quality and efficiency. The activities under each component will be implemented by the public sector and/or civil society organization, based on their respective comparative advantage. The preparation of a Resettlement Action Plan (RAP) is not required at this stage since the sub projects, to be created partly on a demand driven, basis have not yet been defined. Notwithstanding, in line with the Bank's Involuntary Resettlement Policy OP 4.12, the Government of Sao Tome e Principe is required to prepare a Resettlement Policy Framework for disclosure before appraisal. The RPF establishes the resettlement principles, organizational arrangements and design criteria to be applied to the sub- projects that will be prepared during project implementation in compliance with the laws of STP and the Bank's safeguards policy on resettlement. Domain A Better access and quality to basic education services Component A1 Policy Reform and capacity building for more effective institutions Sub-component A1.1: Policy Reforms This sub-component aims at laying the foundation for a better managed and integrated six years primary education system. It will cover key policy and institutional reforms. The expected outputs indicators are mainly process oriented. The activities are summarized as follows: The investment program described under component 2 and 3 will support the implementation of the reforms which mainly consists of: (i) transforming the current four years primary education to six years; (ii) eliminating progressively the triple-shift system in favor of double-shift; (iii) developing and implementing a career development 4 Government of Sao Tome and Principe Resettlement Policy Framework PASS path for the teachers as well as establishing criteria for the selection and appointment of school directors, pedagogic advisors, and school inspectors and incentives for teachers serving in remote and difficult areas. The Directorate of Primary education would be responsible for overall supervision of the reforms in relation with the deputy minister. Sub-component A1.2: Capacity Building Interventions This sub-component will improve systems and capacity to operate a decentralized education system, including improving strategic planning, management, and monitoring and accountability procedures in the education sector. It will target the organization and staff of the Ministry at the central and local levels. Given the limited planning and management capacities and the overly centralized administration, new competencies for the education administration units will be introduced during the project life. This sub-component will also finance capacity strengthening activities at the community level with the assistance of the civil society represented by the Federation of NGOs (FONG). Hence, developing partnerships between the public sector and civil society (through FONG) and strengthening their respective capacity in that regard will form an important part of the project. Component A2 Improving access and equity to basic education The main objectives of this component are to: (i) increase primary school enrollment ratios; (ii) spread educational opportunities more equitably between districts so that access to the first and fifth grades will increase in the targeted districts. (iii) maintain girls' share in total enrollment to about 50%.; and (iv) provide literacy program to adults including women. Sub-component A2.1: School Construction To reach the government objectives of x% primary school enrollment in 200x, would require construction of about xxxxx classrooms during the period to provide for about xxxx additional students of which x% will be from the targeted areas. The proposed project would contribute to this program by financing construction and equipment of about xxxx new classrooms of which x% will be in targeted districts. The project would also rehabilitate xxxxx classrooms. The selection of localities will be based on both need and demand. Component A3 Improving the quality of basic education It is expected that this component would: (i) increase the output of the Teachers Training College (TTC) and increase the share of trained teachers through upgrading the skills of existing teachers; (ii) achieve a target ratio of one textbook (to be loaned free of charges) per student in principal subject matters; (iii) help reduce overall repetition to about 15% Domain B Better access and quality to basic health services On the basis of its National Health Development Plan (2001-2010), the Ministry of Health is now developing an Action Plan along the following 5 axes: a) Malaria, b) HIV/AIDS, c) District Services, d) Hospital (secondary and tertiary level care), and e) Drugs. The area of institutional strengthening will also be addressed to allow for 5 Government of Sao Tome and Principe Resettlement Policy Framework PASS implementation of the overall strategy. The project will focus its support on district services, and institutional capacities supporting these. Components B1 Policy reform and capacity building for more effective health institutions The project will support improvement of planning capacity through TA at national and district level: policy development, revision of norms and standards concerning health financing, pharmaceutical policies, protection of the poor. Planning at district level will be done in cooperation with the local population. The project will support strengthening of the management capacity of the sector with a special focus on personnel management and strengthening of the health information system. As for the education sector, this component will contribute to develop capacity in both community and public sector arenas to work in close collaboration to improve effectiveness, efficiency and impact of social service delivery. Capacity development would be pursued through intensive co-production in health initiatives between public sector and civil society, by virtue of demonstration through the ongoing community- driven development initiatives in health in poor communities, through training, networking and ongoing monitoring and evaluation. Component B2 Improving equity and access to basic health services The project will strengthen district health services, bringing them closer to the population. Hereto, several health facilities will be rehabilitated, extended or re-equipped (including Cantagalo, Mé Zoxí, Agua Arroz, HMQDG, Santana, Madre de Deus). The project will make clinical maternity services available in each district. It will also provide transport to improve outreach activities and to facilitate referrals. Component B3 Improving quality and efficiency of basic health services The project will support the improvement of the Central Drug Store, providing it with a double roof and other climate control facilities. The project will provide some funds for the procurement of pharmaceuticals, complementing Government funds. The project will support the set-up of a mobile network to improve of laboratory and diagnostic facilities. Domain C. Addressing Cross-sectoral Social Issues: HIV/AIDS, Malaria, and School Health The project will support public sector activities and community driven initiatives that address cross sectoral health and education issues, namely HIV/AIDS, Malaria and School Health. Community-driven initiatives will be directed towards better alignment of public sector services to articulated community needs, improved coordination and integration of cross-sectoral services at the delivery frontline and capacity strengthening of communities and civil society organizations to identify, design, implement, monitor and evaluate. Components C1 HIV/AIDS This component will focus mainly on prevention. Attention will be given to gender specificity of HIV/AIDS interventions, dealing with both female and male specific risks. 6 Government of Sao Tome and Principe Resettlement Policy Framework PASS Component C2 Malaria The project will provide institutional support to the malaria program by providing TA to the CNE, the executive branch of the National Malaria Council. It will complement the support from other partners by assisting in the financing of procurement of bed nets. Component C3 School Health Under this component, the project would provide support to: a) The Commission for School Health in putting in place clear roles and responsibilities; planning activities; and monitoring and evaluation of activities. This would include Technical Assistance and Training. b) Basic de-worming in all primary and lower secondary schools. c) Health education through the printing of manuals for students and children and the training of teachers to include issues on reproductive health, HIV/AIDS, and diseases. Domain D Project Administration and Coordination Overall project management and coordination will be the responsibility of a Project Coordination and Monitoring Committee (PCMC), headed by the Minister of Finances. This entity will be supported by a Project Implementation Unit (PIU), which will carry out fiduciary functions and respond to demands from the PCMC and line ministries. The Federation of Non-governmental Organizations (FONG) will ensure the day-to-day management and coordination of the civil society and communities response while addressing issues that may arise from PCMC meetings as well as line ministries in that regard. In addition, a focal point will be externally-recruited to coordinate project activities to be implemented by the participating line ministries, liaise with the PCMC, the PIU, and FONG. Component D1: Management and Coordination for the Public Sector Sub-component D1.1: Project Coordination and Monitoring Committee (PCMC). The Project will support the work of the multi-sectoral PCMC established by Decree in 2002 to coordinate and oversee project preparation and implementation activities. The PCMC will ensure that activities financed by the Project are within the priorities of the adopted strategies for the health and education sectors. PCMC will be informed on the status of project implementation by focal points recruited to support each ministry as well as FONG. The project will finance meetings, training and workshops, technical assistance, monitoring and supervision related costs, small equipment, operating costs, and study tours and exchanges of the PCMC members with neighboring countries where similar interventions are successfully implemented. Sub-component D1.2: Project Implementation Unit (PIU). Established by decree (no. 12/2003), the PIU will be responsible for the day-to-day management of the project, fulfill all the administrative and fiduciary responsibilities related to the project on behalf of the implementing agencies (e.g., financial management, procurement, disbursement, monitoring and reporting) and will ensure effective monitoring and evaluation of project achievements and outcomes during the project in liaison with the focal points The PIU 7 Government of Sao Tome and Principe Resettlement Policy Framework PASS will support the PCMC in carrying out its mandate, particularly with regard to monitoring and evaluation of project indicators. Sub-component D1.3: Focal Points in Line Ministries. Externally-recruited focal points will coordinate project activities implemented be the various directorates. Focal points will backstop directorates in fulfilling their respective mandate. They will liaise with the PIU to ensure that conditions are timely met to support line ministries in carrying out their activities as stated in their agreed annual work programs. Component D2: Management and Coordination for the Civil Society and Community Initiatives Subcomponent D2.1: Federation of Non-governmental Organizations (FONG). FONG was established in April 2001 to serve as an umbrella federation for coordination between and collaboration amongst nascent domestic and international NGOs and the public and private sectors, with the objective of strengthening the capacity and developmental contribution of the civil society in São Tome. Under the project, FONG will be responsible for the day-to-day management and coordination of civil society and community activities related to each project's domain. FONG will address any queries that may be raised by the PCMC with regard to civil society interventions. The Project will support the day-to-day management functions of FONG during project implementation. Subcomponent 2.2: Focal Points in Line Ministries. Focal points of the line ministries will be responsible to liaise with FONG on matters pertaining to the civil society and community-based initiatives. As such, focal points will ensure that initiatives are acknowledged by line ministries in their own endeavors and that they are in full coherence with sectoral strategies. B. POLICY PRINCIPLES and OBJECTIVES GOVERNING RESETTLEMENT PREPARATION and IMPLEMENTATION The impacts due to involuntary resettlement from development projects, if unmitigated, often gives rise to severe economic, social and environmental risks resulting in production systems being dismantled, people facing impoverishment when their productive assets or income sources are lost, people being relocated to environments where their productive skills may be less applicable and the competition for resources greater; community institutions and social networks being weakened; kin groups being dispersed; and cultural identity, traditional authority, and the potential for mutual help are diminished or lost. Therefore, the objectives of this policy are the following; i) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative sub-projects design. 8 Government of Sao Tome and Principe Resettlement Policy Framework PASS ii) Where involuntary resettlement is unavoidable, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to give the persons displaced by the project the opportunity to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. iii) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. Here, the affected people, according to the Bank policy, refers to people who are directly affected socially and economically by the Bank assisted investment projects, caused by; (a) the involuntary taking of land and other assets resulting in : (i) relocation or loss of shelter; (ii) loss of assets or access to assets; (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or (b) the involuntary restriction of access to legally designated parks and protected areas results in adverse impacts on the livelihood of the displaced persons. The resettlement policy applies to all components under the project, whether or not they are directly funded in whole or in part by the Bank. It also applies to other activities resulting from involuntary resettlement, which in the judgment of the GoSTP and the Bank, are (a) directly and significantly related to the Bank assisted project, (b) necessary to achieve its objectives as set forth in the project documents; and (c) carried out, or planned to be carried out, contemporaneously with the project. The policy applies to all displaced persons regardless of the total number affected, the severity of impact, and legal title to land. Particular attention should be paid to the needs of vulnerable groups among those displaced; especially those below the poverty line, the landless, the elderly, women and children, indigenous groups and ethnic minorities or other displaced persons who may not be protected through STP's land compensation legislation. In particular for PASS, the policy also requires that the implementation of resettlement plans are a pre-requisite for the implementation of the sub-projects to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For sub-projects involving land acquisition, it is further required that these measures include provision of compensation and of other assistance required 9 Government of Sao Tome and Principe Resettlement Policy Framework PASS for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, the taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to displaced persons. For sub-projects requiring relocation or loss of shelter, the policy further requires that measures to assist the displaced persons are implemented in accordance with the sub- project's resettlement plan of action. The policy aims to have the displaced persons perceive it to be fair and the compensation process transparent. C. DESCRIPTION OF THE PROCESS FOR PREPARING AND APPROVING RESETTLEMENT PLANS To address the impacts under this policy, sub-projects resettlement plans must include measures to ensure that the displaced persons are; a) informed about their options and rights pertaining to resettlement b) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives c) provided prompt and effective compensation at full replacement cost for loss of assets attributable to the sub-project as well as costs incurred as a result of resettlement. At the start of implementing the project, two studies would have to be conducted, namely, a) A Socio-economic Study b) Assets Evaluation Study The purpose of the Socio-economic study is to collect baseline data within the project targeted areas thereby enabling the social assessment of potentially affected populations/communities. Under this study a comprehensive census would be carried out to identify potentially affected people on the individual and household levels, vulnerable groups (women, children, the elderly, female headed households, etc.). The social assessment would focus on identification of stakeholders (demographic data), the participation process, identification of affected people and impact on their property and their production systems, the institutional analysis and the system for monitoring and evaluation. Detailed calculation of household economies will be necessary in the social assessment and be the determinant in the potential compensation process. The purpose of the evaluation of assets study is to evaluate potential sub-project land and to determine the sizes of the individual pieces of land that will be acquired. It would also 10 Government of Sao Tome and Principe Resettlement Policy Framework PASS classify the land, built structure and any other immovable assets and will also provide guideline information on the value of these assets. When the results of these studies are available, the resettlement plans for sub-projects would be prepared by the implementers (Focal Points) and screened and approved through the Department of Infrastructure (DoI) in compliance with the project institutional administrative arrangements. It would also require that the resettlement plans are consistent with this framework policy and approved by the Bank. Therefore, each sub-project that is proposed to be included would be screened and classified according to its environmental and social impact. The screening and classification process should follow certain criteria already established and the mitigation measures that will be proposed vis-à-vis environmental and social issues should be in compliance with all Government of STP Environmental and World Bank Safeguard policies. Certain activities will not be funded by the project, including those likely to trigger selected safeguards for e.g. disputed areas, cultural property, indigenous peoples and natural habitats. The DoI will screen the proposed sub-projects that it receives from the beneficiaries. The Screening Process The screening process would take the form of; 1.) Classifying the sub-projects by activity into the following categories; i) Building of schools ii) Building of medical clinics iii) Others 2.) Identifying and evaluating potential impacts for each proposed sub-project on the resettlement policy. 3.) Triggering of the resettlement policy would require a preliminary determination of whether the sub-project should be proposed or not, based on an assessment of the intensity of the impact and on the mitigation measures that would need to be developed and proposed. The Focal Points from each line ministry can then decide to present its case even where extensive/cumbersome mitigation measures are deemed necessary in the sub-project. 4.) Determining the need for land acquisition and whether there is a need to obtain legal title to the land. This is a pre-condition for approval. 11 Government of Sao Tome and Principe Resettlement Policy Framework PASS 5.) Using of the Socio Economic Studies to identify affected people on the household level and vulnerable groups in the sub-project impact area(s) and to calculate household economies. 6.) Using the assessment evaluation reports. 7.) Ensuring that land required/acquired is not, (i) in disputed areas, (ii) cultural property, (iii) negatively affecting indigenous peoples and (iv) is not in natural habitats. This is a pre-condition for approval. The above screening process should be used by the FPs in the preparation of their sub- projects to enhance their likelihood for approval. Notwithstanding, at the level of the DoI sub-projects received would be reviewed applying very similar screening and evaluation mechanisms as those carried out by the FPs in order to review and control the process already carried out. Furthermore, the DoI should as a guideline consider the cumulative factor and not approve sub-projects that have individual high impact intensity. For example, where land acquisition is required to such an extent that it would require more than 5% of a communities total land under cultivation or when the mitigation measures are so cumbersome that their efficacy cannot be predetermined or they cost more than 20% of the investment budget. Before the decision to approve a sub-project is taken, the DoI will need to approve or disapprove the resettlement plan of the sub-project in totality with the overall environmental and social screening process that has been applied for each sub-project and to also approve or disapprove of the proposed mitigation measures, if any. Final approval of Resettlement Action Plans will be made by the Bank. The sub-projects are expected to be very small in scale. However, the cumulative effect of dozens of sub-projects is likely to be significant and a review must be made at a level higher than the community level on the possible cumulative impact of the sub-projects and if the respective individual mitigation measures per sub-project are sufficient at the cumulative and overall national level. When the cumulative impact of sub-projects are being considered at the local, regional and/or national levels, additional mitigation measures may be deemed necessary. These would have to be integrated into the resettlement plans of future sub-projects and the monitoring and evaluation plan of the project. Capacity will be built at the departmental level of the Ministry of Infrastructure to assist them in effectively carrying out their role in monitoring and supervision. D. ESTIMATED POPULATION DISPLACEMENT AND LIKELY CATEGORIES OF DISPLACED PERSONS 12 Government of Sao Tome and Principe Resettlement Policy Framework PASS At this stage any attempt to quantify the estimated likely number of people who may be affected would be at best, unreliable, since the sub-projects have not all been identified. The estimated population would be determined during the census as part of the socio- economic study. However, the likely displaced persons can be categorized into three groups, namely; i) Affected Individual - An individual who suffers loss of assets or investments as a result of the sub- projects and to whom compensation is due. For example, an affected individual is a person who farms a field, or who has built a structure on land that has been demarcated for agricultural use by the GoSTP and is now required by a sub-project. ii) Affected Household - The people whom an affected individual declares ought to join him or her in resettlement. This provides for: a) vulnerable individuals who may be too old or ill to farm along with the others b) relatives who cannot reside together because of cultural rules, but who depend on one another for their daily existence. c) relatives who may not eat together but provide housekeeping, or reproductive services critical to the family's maintenance, and d) other vulnerable people who cannot participate for physical or cultural reasons in production, consumption, or co-residence. Resettlement will not be limited to people who live together in a co-resident group, since this might leave out people whose labor contributions are critical to the functioning of the "household". For example, many wives have separate homes. An opposite-sex parent and child cannot live together, due to special proscriptions, even though the child is often the parent's main support. iii) Vulnerable Households - vulnerable households may have different land needs from most households or needs unrelated to the amount of land available to them. This provides for: a) Women ­ may depend on husbands, sons, brothers or others for support. In many cases too, women are the main breadwinner in their household. They need relatively easy access to health service facilities, as mothers and wives. Women are central to the stability of the household. They should not be resettled in a way that separates them from their households as the very survival of their households depends on them. b) Unmarried women ­ may be dependent on sons, brothers, or others for support. Since an affected individual is able to name the person with whom s/he is linked in dependency as part of the household, resettlement will never sever this link. 13 Government of Sao Tome and Principe Resettlement Policy Framework PASS c) Non-farming females ­ these earn income from other sources and/or depend on relatives for "exchanges" of staple foods. Since they do not farm, they will not be affected by the sub-projects need for agricultural land. If a building of theirs lies on land needed by a sub-project, they will receive replacement cost compensation. If someone on whom they depend is resettled, they are protected because the resettler can name them as part of the household. d) Elderly ­ Elderly people farm as long as they are able. They produce small amounts of food to "exchange" with others, they can subsist on the cooked food and generous return gifts of cereal from people such as their kin and neighbors. Damage to their economic viability would result if resettlement separates them from the person or household on whom they depend for their support. The definition of household by including dependents avoids this. These household types are not mutually exclusive: e.g. an elderly woman may be unmarried (or widowed). E. ELIGIBILITY CRITERIA FOR DEFINING VARIOUS CATEGORIES OF PROJECT AFFECTED PERSONS The Bank's OP4.12 suggests the following four criteria for eligibility: a) Those who have formal rights to land (including customary land, traditional and religious rights), recognized under Sao Tomean Law. b) Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets provided that such claims are recognized under the laws of STP or become recognized through a process identified in the resettlement plan. c) Those who lose other economic resources such as trees, agricultural produce on cultivated fields, etc, and or have their access to these economic resources denied or restricted. d) Those who have no recognizable legal right or claim to the land they are occupying, using or getting their livelihood from. Those covered under a) and b) above are to be provided compensation for the land they lose, and other assistance in accordance with the policy. Persons in category c) are compensated for loss of economic resources in accordance with this RPF. Persons covered under d) above are to be provided with resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date established by the DoI subject to "no objection" of the Bank. Persons who encroach on 14 Government of Sao Tome and Principe Resettlement Policy Framework PASS the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in a), b) or c) above are to be provided with compensation for loss of assets other than land. Therefore, it is clear that all affected persons irrespective of their status or whether they have formal titles, legal rights or not, squatters or otherwise encroaching illegally on land, are eligible for some kind of assistance if they occupied the land before the entitlement cut-off date. Persons who encroach on the area after the socio-economic study (census and valuation) are not eligible for compensation or any form of resettlement assistance. Eligibility for Community Compensation Communities (districts, regions, communes, towns and villages) permanently losing land and/or access to assets under communal rights will be eligible for compensation. Method to Determine the Cut ­ Off Dates The entitlement cut-off date refers to the time when the assessment of persons and their property in the sub-project area is carried out, i.e. the time when the sub-project area has been identified and when the socio-economic study is taking place. Thereafter, no new cases of affected people will be considered. The establishment of a cut-off date is required to prevent opportunistic invasions /rush into the chosen land thereby posing a major risk to the project. Therefore, establishment of a cut-off date is of critical importance. F. LEGAL FRAMEWORK Country Context STP was colonized by the Portuguese in the late 15th century. As was the model of Portuguese colonization in other parts of Africa, a defined plantation system (roças) was established, and the great majority of the land, and certainly all agricultural land, was controlled by a small group of white Portuguese plantation owners. The plantation labor system was the economic model of STP development, which depended entirely on slavery, indentured and contract migrant labor. After the abolition of slavery, workers, though freed in theory, were still forced to work on the plantations. As for agricultural production, after colonization, STP soon became the world's largest producer of sugar. Having lost their dominance in sugar production to the Caribbean in later centuries, they began to center production around cocoa and coffee in the nineteenth century. In 1909, the Portuguese colonial authorities attempted to restrict re-contracting in the 15 Government of Sao Tome and Principe Resettlement Policy Framework PASS face of growing international pressure; in practice, indentured labourers had no chance of leaving the service of the plantation they had been allocated to. However, the reforms proved these developments led to chronic shortages of labour. Despite very high levels of unemployment, Sao Tomeans have always shunned labour on the plantations, owing to its close association with slavery. After independence 1975, the skilled Portuguese agro-managerial elite fled STP and there were failed attempts at collectivization and land reform by the new government. These problems were exacerbated by extremely poor commodity prices in the 1970s and the 1980s. Following STP's independence, the roças were nationalized and later regrouped into 15 Empresas Estatais Agro-pecuárias (State Agriculture and Livestock Enterprises, called empresas for short), which was defended as the necessary response to the flight of the Portuguese. The first Republic embraced socialists policies, especially concerning land tenure and agricultural production. Unfortunately, the twin-problems of running state- owned farms and the collapse of cocoa prices in 1979 left STP without sufficient foreign exchange to pay for vital inputs for the industry. Only one state-owned plantation was profitable in the 1990s. In 1990 the country began reform of the socialist, state-run economy, and began a large-scale land reform initiative. Consequently, the government adopted a new privatization program in connection with public enterprise reform in 2000. In the agricultural sector, the government has already turned all its large agricultural estates over to private operators under long-term operating leases and redistributed about 30,000 hectares of cultivated land to 5,000 families of small-and medium-scale farmers. In 2000, it finalized, with assistance from the World Bank, its strategy for privatizing large government agricultural estates and rationalizing the land tenure system in order to increase production and reinforce investment incentives. Achieving sustainable growth in per capita income will help reduce poverty in São Tomé and Príncipe. Specifically, the distribution of arable land to small farmers and the rationalization of the land tenure system should improve appreciably the standard of living of rural populations. Legal Context Lei N 3/91 on Land Tenure recognizes the expropriation and rehabilitation of public and private lands. Specifically, article 46 specifies the general modalities for expropriation. The law also defines the parameters for private use of state-owned land for private use in Artice 2, and the definition of private land and property. The law relating to land tenure in STP is clear that entitlements for payment of compensation are essentially based on the right of ownership. In practice, the consultant saw many cases where people had been resettled and compensated based on customary 16 Government of Sao Tome and Principe Resettlement Policy Framework PASS rights to the land and/or property. The laws of STP have no fixed standard for compensation or identification of people who are eligible for resettlement compensation. The Bank OP is fundamentally different from this and states that affected persons are entitled to some form of compensation whether or not they have legal title if they occupy the land by a cut-off date. The two legal frameworks will be used in a complimentary manner to strengthen and ensure the principles of fair compensation and compensation at market value. Nonetheless, as this is a Bank funded project, the principles of must be adhered to if the Bank is to fund the project. As a result, people affected by this project would be entitled to protection of the Laws of STP and the Bank OP4.12. Where there is a conflict, the Bank OP4.12 must take precedence. Category of PAPS/ Type of Lost World Bank OP4.12 Land Owners Recommends land-for-land compensation. Other compensation is at replacement cost. Land Tenants Are entitled to some form of compensation whatever the legal recognition of their occupancy. Land Users Entitled to compensation for crops, may be entitled to replacement land and income must be restored to pre-project levels at least. Owners of "Non permanent" Buildings Entitled to in-kind compensation or cash compensation at full replacement cost including labor and relocation expenses, prior to displacement. Owners of "Permanent" buildings Entitled to in-kind compensation or cash compensation at full replacement cost including labor and relocation expenses, prior to displacement. 17 Government of Sao Tome and Principe Resettlement Policy Framework PASS Perennial Crops As per section G of this RPF once approved by the Bank and disclosed in ST and at the Bank Infoshop. Based on the above compensation structure, entitlement matrix presented below is so designed to be in compliance with these requirements. The missing values in the entitlement matrix will be determined at the time the resettlement plans (RAPs) are being negotiated and prepared. 18 Government of Sao Tome and Principe Resettlement Policy Framework PASS THE ENTITLEMENT MATRIX FOR VARIOUS CATEGORIES OF PAPS Category of Type of Loss ENTITLEMENTS PAP Compensation for Compensation for Loss Compensation for Moving Allowance Other Assistance Loss of Structures of Land and other Loss of Income Assets Property Owners Loss of Land Replacement Costs Land replacement at crops at market rates None new site, plus land in scarce season clearing by the project Loss of Structure Compensation at full (Fences (wire, wood) at For lost rental income, Moving to be done Disturbance Residential or replacement value not US $.... Lump sum cash free by project Allowance of US Business depreciated. payment of 6 months $100 (min.) Wells at US $..... rent per tenant. Stores at US$.... Residential Loss of rental No loss of structure, Replacement costs for No loss of income Free moving if 6 months rent Tenant: accommodation can receive assistance non-movables if notification before equivalent for in locating acceptable, installation was agreed deadline disturbance alternative structures. with owner. Business Loss of Premises No Loss Replacement cost for For loss of business Free moving if Tenant facilities that cannot be income, receive their notification before moved wages during the deadline move and re- establishment Loss of Land None Where possible Crops at market rates None assistance in securing in scarce season. For Encroachers other access to land for street vendors on right (using Land) crops growing subject to of ways possible approval of local access to other authorities/communities. sites/locations Loss of Shelter Compensation at full None Payments in lieu of Receive a moving Disturbance replacement value for wages while allowance allowance of US$... Squatters structure, relocation to rebuilding (living on Site) resettlement site, with payment of site rent. n.b.: all payments to be made in dobras. Dollar values indicated in table to allow for international interpretation/conversion only. 19 G. METHODS OF VALUING AFFECTED ASSETS. Valuation methods for affected land and assets would depend on the type of asset. The two land asset types identified earlier in this policy framework are: (i) Assets held under Statute Law (including State or Privately held Land) (ii) Assets held under Customary Law State owned land may be allocated free or sold on a commercial basis to the project by the Minister responsible for land administration (perhaps except for processing and registration fees), the project would be expected to pay compensation to acquire land in this category in cases where the state-owned land is being used by farmers or for instance grazed upon, settled upon or other wise being used. Privately owned property would have to be acquired at the market value. The guiding principle is that whoever was using the land to be acquired would be provided other land of equal size and quality. PASS would compensate for assets and investments, including labor, crops, buildings, and other improvements, according to the provisions of the resettlement plan. Compensation rates would be market rates as of the date and time that the replacement is to be provided. The market prices for cash crops would have to be determined. Calculations for compensation would not be made after the entitlement cut-off date in compliance with this policy. For communal land held under customary law, the permanent loss of any such land will be covered by community compensation which will be in-kind, only. However, because the Bank policy on resettlement, OP 4.12, makes no distinction between statute and customary rights, not only assets and investments will be compensated for, but also land. Thus, a customary land owner or land user on state owned land will be compensated for land, assets, investments, loss of access etc. at market rates at the time of the loss. Compensation Payments and Related Considerations Individual and household compensation will be made in cash, in kind, and/or through assistance. The type of compensation will be an individual choice although every effort will be made to instill the importance and preference of accepting in kind compensation if the loss amounts to more that 20% of the total loss of subsistence assets. FORMS OF COMPENSATION Compensation will be calculated in dobras. Rates will be adjusted Cash Payments for inflation. Compensation may include items such as land, houses, and other In-kind Compensation buildings, building materials, seedlings, agricultural inputs and financial credits for equipment. Assistance may include moving allowance, transportation and labor Assistance REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) Making compensation payments raises some issues regarding inflation, security and timing that must be considered. One purpose of providing in-kind compensation is to reduce inflationary pressures on the costs of goods and services. Local inflation may still occur, thus market prices will be monitored within the time period that compensation is being made to allow for adjustments in compensation values. The question of security, especially for people who will be receiving cash compensation payments needs to be addressed by the local administration. Local banks and micro finance institutions should work closely with the local administration at this level to encourage the use of their facilities which will positively impact the growth of the local economies. The time and place for in-kind compensation payments will be decided upon by each recipient in consultation with the project sponsor and the PASS. Compensation for Land Compensation for land is aimed at providing a farmer whose land is acquired and used for project purposes with compensation for land labor and crop loss. For this reason, and for transparency, "Land" is defined as an area or Homestead: · In cultivation · Being prepared for cultivation, or · Cultivated during the last agricultural season This definition recognizes that the biggest investment a farmer makes in producing a crop is his of her labor. A farmer works on his/her land most of the months of the year. The major input for producing a crop is not seed or fertilizer, but the significant labor put into the land each year by the farmer. As a result, compensation relating to land will cover the market price of labor invested as well as the market price of the crop lost. Land measurement For purposes of measuring land, the unit of measurement would be that which is used and understood by the affected farmers. Therefore, if a traditional unit of measurement exists, that unit should be used. In most cases the unit the farmer knows is called "the strip". A strip is an equal portion of part of a homestead that has been so divided for use by members of that homestead. For example, Homestead A with five entitled members may contain five strips; another home with twelve entitled members may be divided into twelve strips. The strips in Homesteads A and B of this example will not be the same size (in most cases). But the members of each homestead know the size or area of their own strip. If a traditional unit of measurement does not exist in a particular area and they are not familiar with the concept of "strips", then it is recommended that land should be measured in meters or any other internationally accepted unit of measurement. However, in such an event, the unit that is being used must be explained to the affected farmers and must somehow be related to easily recognizable land features that the communities are 21 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) familiar with, such as using location of trees, stumps, etc. as immovable pegs. The most important concern of this exercise is to ensure that the affected person is able to verify using his/her own standards/units of measurement for him/herself, and the size of land that is being lost. Ensuring that this occurs maintains transparency in the system and will thus avoid subsequent accusations of wrong measurements or miscalculation of areas. For instance, a farmer losing one strip in a homestead knows exactly how much land he/she is losing, in terms of size and the replacement land must be at least of that same size of "strip", determinable by the farmer. Calculation of Crops Compensation Rate The current prices for cash crops would have to be determined. All crops to be compensated using a single rate regardless of the crop grown. This rate incorporates the value of crops and the value of the labor invested in preparing a new land. Determining compensation using a single rate creates transparency because anyone can measure the area of land for which compensation is due and multiply that by a single rate known to all. This approach also allows assignment of values to previous year's land (land in which a farmer has already invested labor) and land that have been planted but have not yet sprouted. Further, it avoids contention over crop density and quality of mixed cropping. The value of the labor invested in preparing agricultural land will be compensated at the average wage in the community for the same period of time. The rate used for land compensation is to be updated to reflect values at the time compensation is paid. Crop values will be determined based on: · A combination of staple foods and cash crops. Specifically, the 80/20 ratio of land that a farmer typically has in food crops and cash crops is used to determine the chances s/he would lose food crop rather than a cash crop income. · The value of stable crops to be taken as the highest market price (over 3 years) reached during the year, in recognition of these factors: - Although most farmers grow staple crops mainly for home consumption, they always have the option of selling these crops to take advantage of the market. - Farmers most often purchase cereals when they have run out, during the "hungry season" when prices are high. Compensating at a lower value might put the individual or household at risk. - Averaging the highest price of stable foods yields a high per ha value that reimburses for the vegetables and other foods that are commonly 22 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) inter-cropped with staples, but are almost impossible to measure for compensation. · The labor cost for preparing replacement land is calculated on what it would cost a farmer to create a replacement land. This value is found by adding together the average costs of clearing, plowing, sowing, weeding twice, and harvesting the crop. Labor costs will be paid in dobras, at the prevailing market rates. The following table presents an example of a compensation schedule for a one- hectare land. The dobra values will need to be validated at the time payments are made. EXAMPLE OF LAND COMPENSATION SCHEDULE OF PAYMENTS Labor in dobras/ha Activity Month Paid Rate Cost/day x no. of days Clear March Plough May Sow May Weed May Harvest November Total All agricultural labor activities are included for two reasons. First, because of the need for transparency, all land labor will be compensated for at the same rate. Second, it is difficult to forecast when during the growing season a farmer might need to give up his/her land. Thus, the land compensation covers all investments that a farmer will make. In certain cases, assistance may be provided to land users in addition to compensation payments, for example, if the farmer is notified that his/her land is needed after the agriculturally critical date of March, when s/he will no longer have enough time to prepare another land without help. Assistance will be provided in the form of labor intensive village hire, or perhaps mechanized clearing, so that replacement land will be ready by the sowing dates. The farmer will still continue to receive his/her cash compensation so that /s/he can pay for sowing, weeding and harvesting. Compensation for Buildings and Structures Compensation will be paid by replacing structures such as huts, houses, farm outbuildings, latrines and fences. Any homes lost will be rebuilt on acquired replacement land, however cash compensation would be available as a preferred option for structures (i.e. extra buildings) lost, that are not the main house or house in which someone is living. The going market prices for construction materials will be determined. Alternatively, compensation will be paid in-kind for the replacement cost without 23 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) depreciation of the structure. The project will survey these prices for administrative purposes on an ongoing basis. Compensation will be made for structures that are: · Abandoned because of relocation or resettlement of an individual or household, or · Directly damaged by construction activities. Replacement values will be based on: · Drawings of individual's house and all its related structures and support services, · Average replacement costs of different types of household buildings and structures based on collection of information on the numbers and types of materials used to construct different types of structures (e.g. bricks, rafters, bundles of straw, doors etc.), · Prices of these items collected in different local markets, · Costs for transportation and delivery of these items to acquired/replacement land or building site, · Estimates of construction of new buildings including labor required. COMPENSATION FOR BUILDINGS AND STRUCTURES Buildings and structures will be replaced by an equivalent structure or, on an exception basis, cash and/or credits will be paid based on replacement costs. Item Example House Raw or Baked brick Straw or tin roof Varying sizes (small, medium large) Kitchen Open, closed Stables/sheds/pens Cattle, goat, donkey, sheep, other Coops Chicken, duck, other Fence Straw/poles (per unit poles & mat), raw and/or baked brick/cement blocks (per 1-m length) Private Bathing . Latrine Replacement latrines will be similar to those currently operational and financed by the bank or other donor agencies at health centers, schools. Open well Internally lined with concrete rings and provided with a hand driven pump. Storage building Cement/sandblock walls with thatched roof on z-profiled metal sheets. Sun Screen open huts/shades Similar to those replaced, on thatched roof on wood poles. Compensation for Sacred Sites This policy does not permit the use of land that is defined to be cultural property by the Banks Safeguards OP 4.11. Sacred sites include but not restricted only to; altars, initiation centers, ritual sites, tombs and cemeteries. It includes other such sites or places/features that are accepted by local laws (including customary), practice, tradition and culture as sacred. To avoid any possible conflicts between individuals and/or 24 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) communities/homesteads the use of sacred sites for any project activity, is not permitted under this project. Compensation for Vegetable Gardens These are planted with vegetable and ingredients for daily use. Until a replacement garden starts to bear, the family displaced (economically or physically) as a result of the project land needs will have to purchase these items in the market. The replacement costs therefore, will be calculated based on the average amount that an average town dweller spends on buying these items for one year per adult from the local market. Compensation for Horticultural, Floricultural and Fruit trees Cacao and Banana trees are featured here below as two examples of the set of primary fruit/bean trees in the project targeted area and are estimated to account for a significant amount of all fruit/bean bearing trees. They are primarily important as a source of : · Subsistence food for families · Cash produce that contribute to the export economy · Petty market income in some areas For Banana trees, they have a relatively much shorter productive life, normally, than coconut trees. Banana trees will not bear fruit more than once. Therefore, compensation for banana trees would be compensated at the full market rates for bananas harvested in that year and for another year. The second year payment is for the replacement cost of planting a new tree, looking after it and harvesting it which could all be done in one year. Therefore, the farmer should have restored his pre-project position by the end of the second year. This example of bananas is an example for trees/plants that have a relatively short life. Given their significance to the local and export economy, which this project intends to positively impact, cacao trees will be compensated on a combined replacement/market value. Cacao trees used for commercial purposes will be compensated at market value based on historical production records. If households chose to resettle, they will be compensated for the labor invested in the trees they leave behind, because they will continue to own the trees left behind under customary rights. It is not uncommon for individuals to own trees in other villages in which they formally lived and, in some cases, to continue to harvest fruit from those trees for subsistence purposes and/or sale to traders. If a homestead chooses to transfer ownership of the trees, transfer costs will be paid in addition to labor costs. The compensation rate will be based on information obtained from the socio-economic study. From this study, a compensation schedule for cacao trees can be developed incorporating the following goals: · Replace subsistence cacao production yields as quickly as possible. · Provide subsistence farmers with trees to extend the number of months of the year during which cacao is produced and can be harvested. 25 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) · Provide farmers with the opportunity to derive additional production income from trees bearing more valuable fruits/beans at off-season periods. · Provide cash payments to farmers to replace pre-project income derived from the sale of excess cacao production until replacement trees produce the equivalent (or more) in projected cash income. The compensation schedule is based on providing a combination of new grafted and local trees to farmers, as well as cash payments to offset lost yearly income. The schedule could assume the following (the figures in dobras to be determined in the socio-economic study): Cacao Trees Estimated Avg. Bean Yield (kg) of Mature tree Kg/year Estimated Yield used kg/tree/year Market Price, · Height of harvest season dobras/kg · End of season dobras/kg Price used as basis of this estimate 80% height of season;20% end of season Years to Production Years to Maximum Production Costs of Sapling Dobras, locally available. Proposed Schedule for Cacao Trees Cut Down Est. In-kind replacement for Credits/Financial Type/Age of Tree Years Local Guava and Mangoes Support. Sapling 0-1 Deliver to Farmer: · Dobras Trees planted after project · Choice of two cacao trees cut-off date in area will not (local and/or improved grafted) be eligible for · Supplies: fencing to protect compensation Tree, a bucket for watering, and a spade. Sapling/Young Tree 1-6 Deliver to farmer: Equivalent of X no. of First minor production · Choice of cacao trees dobras in credits or other (local and/or improved grafted) financial support for labor · Supplies: fencing to protect invested in planting, Tree, a bucket for watering, and a fencing, and watering, Spade made in one payment. Mature Cacao Trees 6-30+ Deliver to farmer: Equivalent of X no. dobras · Choice of two cacao trees in credits or other financial (local and/or improved grafted) support for labor invested · Supplies: fencing to protect in planting, fencing, and Tree, a bucket for watering, and a watering, made in one Spade payment. Equivalent of X no. dobras in credits or other financial support, representing eight years, (8 years x 10 sacks x X DOBRAS/sack) lost income/subsistence until replacement trees begin production. This rate to be agreed by farmers. 26 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) Total: Equivalent of X no. dobras in cash or equivalent financial support to be paid in one installment. No compensation will be paid for minor pruning of trees. Compensation for removal of limbs will be prorated on the basis of the number of square metres of surface area removed. The total surface area of the tree will be calculated using the following formula: (½ diameter of canopy )2 x 3.14. Other domestic fruit and shade trees These trees have recognized local market values, depending upon the species and age. Individual compensation for wild trees "owned" by individuals which are located in lands as defined in this policy will be paid. Note that wild, productive trees belong to the community when they occur in the true bush as opposed to a fallow land. These trees will be compensated for under the umbrella of the village or community compensation. No compensation will be paid for minor pruning of trees. Compensation for removal of limbs will be prorated on the basis of the number of square metres of surface area removed. The total surface area of the tree will be calculated using the following formula: (½ diameter of canopy )2 x 3.14. . INDIVIDUAL COMPENSATION Sub-Category Unit Compensation Value ( X no. of DOBRAS) foodstuffs & others(e.g. cocoa) To be determined Rubber, wood, timber To be determined Individual Owned Wild Productive Trees Non-productive Copra Productive Non-productive Cassava Productive Coconut Non-productive Productive Fruit Trees Non-productive Avocado Productive Non-productive Bread Tree Productive Non-productive Banana Productive Papaya Non-productive Productive H. Organizational procedures for the delivery of entitlements, including, for projects involving private sector intermediaries, the responsibilities of the financial intermediary, the government, and the private developer 27 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) Compensation (and resettlement) will be funded like any other activity eligible under the projects' administrative and financial management rules and manuals. The compensation process which will involve several steps, significantly; · Public Participation with the PAPs would initiate the compensation process as part of an ongoing process that would have started at the planning stages when the technical designs are being developed and at the land selection/screening stage. PAPs would be sensitized at the land selection/screening stage on the employment needs of the project sponsors and their contractors. This process would ensure that no affected individual/household is simply "notified" one day that they are affected in this way. Instead, this process seeks their involvement and wishes to involve PAPs in a participatory approach with the project, from the beginning. · Notification of land resource holders ­ PASS, having identified the land it requires will notify the village inhabitants who will help to identify and locate the property users. The user will be informed through both a formal notification in writing and, as some people are illiterate, by verbal notification delivered in the presence of the local leader or his representative. In addition, elders and individuals who control fishing areas or wild trees will accompany the survey teams to identify sensitive areas. · Documentation of Holdings and Assets ­ village officials and their local administration and officials of DoI will arrange meetings with affected individuals and/or homesteads to discuss the compensation process. For each individual or homesteads affected, officials of the project sponsors completes a compensation dossier containing necessary personal information on, the affected party and those that s/he claims as household/homestead members, total land holdings, inventory of assets affected, and information for monitoring their future situation. This information is confirmed and witnessed by village officials. Dossiers will be kept current and will include documentation of lands surrendered. This is necessary because it is one way in which an individual can be monitored over time. All claims and assets will be documented in writing. · Agreement on Compensation and Preparation of Contracts ­ All types of compensation are to be clearly explained to the individual and homesteads involved. The PASS draws up a contract listing all property and land being surrendered, and the types of compensation (cash and/or in-kind) selected. A person selecting in-kind compensation has an order form which is signed and witnessed. The compensation contract and the grievance redress mechanisms are read aloud in the presence of the affected party and the village leaders prior to signing. · Compensation Payments ­ All handing over of property such as land and buildings and compensation payments will be made in the presence of the affected party, and the elders. 28 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) Community Compensation Payments Community compensation will be in-kind only for a community as a whole in the form of reconstruction of the facility to at least the same standard or equivalent better standard to that being built by other Bank funded projects or other donors in the area to serve the same function. Examples of community compensation include; · Public Toilets · Well or Pump · Market Place · Road · Storage warehouse Community compensation may in itself require land take and people may be affected, thus a change of impacts which will be compensated for. I. A description of the implementation process Before any project activity is implemented, PAPs will need to be compensated in accordance with the resettlement policy framework. For activities involving land acquisition or loss, denial or restriction to access, it is further required that these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, the taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to displaced persons. For project activities requiring relocation or loss of shelter, the policy further requires that measures to assist the displaced persons are implemented in accordance with the individual resettlement plan of action. The measures to ensure compliance with this policy directive would be included in the resettlement plans that would be prepared for each land involving resettlement or compensation. J. A description of grievance redress mechanisms At the time that the individual resettlement plans are approved and individual compensation contracts are signed, affected individuals and homesteads would have been informed of the process for expressing dissatisfaction and to seek redress. The grievance procedure will be simple, administered as far as possible at the local levels to facilitate access, flexible and open to various proofs. The project sponsors being a party to the contract would not be the best office to receive, handle and rule on disputes. Therefore, taking these concerns into account, all grievances concerning non-fulfillment of contracts, levels of compensation, or seizure of assets without compensation should be addressed to the village leader/elder for resolution. 29 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) If the verdict rendered by the village leader/elder is not acceptable to either the individual affected or the project sponsor, then the parties in their compensation contract would have agreed that the matter would be appealed to an Independent Advisory Council (IAC), whose decision would be final and binding on the parties. The IAC would comprise of one member from the representatives of the homesteads, one member selected by PASS and one member from the Ministry of Infrastructure. The IAC can co- op/seek the services of professionals, such as property valuers, engineers etc. The members of the IAC are so composed so that each party's standing is represented and the third member from an independent source. The IAC is also deliberately composed so that the village leader and the government have no influence in choosing members so that each party can have confidence in the IAC. All attempts would be made to settle grievances. The IAC will consult with the village elders and other records to determine claim's validity. If valid, an appropriate compensation will be paid. Also, in the local cultures it takes people time to decide that they are aggrieved and want to complain. Therefore, the grievance procedures will give people up to the end of the next full agricultural season after surrendering their assets to set forth their case. K. A description of the arrangements for funding resettlement and compensation, including the preparation and review of costs estimates, the flow of funds, and contingency arrangements. The estimate of the overall cost of resettlement and compensation would be determined during the socio-economic study. PASS would have to finance the resettlement compensation because they are the party who would be impacting livelihoods. At this stage, it is not possible to estimate the likely number of people who may be affected since the technical designs/details have not yet been developed and land needs have not yet been identified. When these locations are known, and after the conclusion of the site specific socio-economic study, information on specific impacts, individual and household incomes and numbers of affected people and other demographic data would be available, thus facilitating the preparation of a detailed and accurate budget for resettlement and compensation. The project sponsors will prepare the resettlement budget and will finance this budget through the project's administrative and financial management rules and manuals like any other activity eligible for payment under the project. At this stage however, all that can be reasonably and meaningfully prepared is an indicative budget, highlighting key features that the budget must contain, inter alia, as follows; # Item Costs Assumptions (in DOBRAS)* 30 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) 1 Compensation for loss of Land For land acquisition purposes, based on cost realized in /hectare projects involving similar issues in STP. 2 Compensation for loss of Crops Includes costs of labor invested and average of highest price of /hectare of staple food crops as per methods farm lost described in Section G of this RPF 3 Compensation for loss of access to Those affected would be pastoralists provided with shared access, or N/A alternate routes (decision agreed through consultation and participation of all) 4 Compensation for loss of access to Data provided from revised fishing resources. socio-economic study will /fishmonger determine market values of catch, fish products etc. that is produced. 5 Compensation for Buildings and This compensation would be in- Structures kind. These new buildings would be built and then given to those affected. Cost based on basic housing needs for a family of eight, including house with three bedrooms, ventilated pit latrines, outside kitchen and storage. 6 Compensation for Trees Based on methods described on /year/tree page 25 of this RPF for compensation for trees. 7 Cost of Relocation This cost is to facilitate /household Assistance/Expenses transportation, etc. 8 Cost of Restoration of Individual Assumed to be higher than the Income GDP/capita. 9 Cost of Restoration of Household Through employment in Project Income Activities. 10 Cost of Training Farmers, pastoralists This is a mitigation measure and other PAPs which seeks to involve those affected by the project activities. This figure represents a costs of around dobras/person * These costs are to be confirmed during the socio-economic study and revised at the time the payments are made 31 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) L. A description of mechanisms for consultations with, and participation of, displaced (economically or physically) persons in planning, implementation, and monitoring. Public consultation and participation are essential because they afford potential PAPS the opportunity to contribute to both the design and implementation of the project activities and reduce the likelihood for conflicts between and among PAPs and the project sponsors. The way land administration is undertaken in STP today makes public consultation with the rural communities indispensable. Furthermore, as the rural communities are the intended ultimate beneficiaries of this project, effective and close consultation with them are a pre-requisite for project success. In recognition of this, particular attention would be paid to public consultation with potentially affected individuals/households/homesteads when resettlement and compensation concerns are involved. Public consultation will take place at the inception of the planning stages when the potential land areas are being considered. The participation strategy would evolve around the provision of a full opportunity for involvement. Therefore, as a matter of strategy, public consultation would be an on-going activity taking place through out the entire project cycle. For example, public consultation would also occur during the preparation of the (i) the socio-economic study, (ii) the resettlement and compensation plan and (iv) the environmental impact assessment and (v) during the drafting and reading of the compensation contract. Public participation and consultation would take place through meetings, radio programs, request for written proposals/comments, filling in of questionnaires/ application forms, public readings and explanations of project ideas and requirements, making public documents available at the national, local and homestead levels at suitable locations like the official residences/offices. These measures would take into account the low literacy levels prevalent in these rural communities by allowing enough time for responses and feedback. Notwithstanding, the best guarantor for public interest is the local leaders who are responsible members of their local communities and can inadvertently be part of the potentially displaced (economically or physically) individuals/households either in part or in whole. Monitoring of this process would be through the local leader as part of the individual resettlement and compensation plans and overall the monitoring and evaluation mechanism of the entire project. This requirement is in line with the Bank policy on disclosure. M. Arrangements for monitoring by the implementation agency and, if required, by independent monitors. 32 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) The arrangements for monitoring would fit the overall monitoring plan of the entire PASS which would be through the Project Implementation Unit. The PIU will institute an administrative reporting system that: (a) alerts project authorities to the necessity for land acquisition (b) provides timely information about the valuation and negotiation process, (c) reports any grievances that require resolution, and (d) documents timely completion of project resettlement obligations (i.e. payment of the agreed-upon sums, construction of new structures, etc.) for all permanent and temporary loses, as well as unanticipated, additional construction damage. The objective will be to make a final evaluation in order to determine; (i) if affected people have been paid in full and before implementation of the project activities , (ii) if the people who were affected by the project have been affected in such a way that they are now living a higher standard than before, living at the same standard as before, or they are they are actually poorer than before. A number of indicators would be used in order to determine the status of affected people (land being used compared to before, standard of house compared to before, level of participation in project activities compared to before, how many kids in school compared to before, health standards, etc). Therefore, the resettlement and compensation plans will set three major socio-economic goals by which to evaluate its success: · Affected individuals, households, and communities are able to maintain their pre- project standard of living, and even improve on it; and · The local communities remain supportive of the project. · The absence or prevalence of conflicts In order to access whether these goals are met, the resettlement and compensation plans will indicate parameters to be monitored, institute monitoring milestones and provide resources necessary to carry out the monitoring activities. The following parameters and verifiable indicators will be used to measure the resettlement and compensation plans performance; · Questionnaire data will be entered into a database for comparative analysis at all levels of Governments, · Each individual will have a compensation signed dossier recording his or her initial situation, all subsequent project use of assets/improvements, and compensation agreed upon and received. 33 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) · The PIU will maintain a complete database on every individual impacted by the project land use requirements including relocation/resettlement and compensation, land impacts or damages · Percentage of individuals selecting cash or a combination of cash and in-kind compensation, · Proposed use of payments · The number of contention cases out of the total cases · The number of grievances and time and quality of resolution · Ability of individuals and families to re-establish their pre-displacement activities, land and crops or other alternative incomes · Pastoral and Agricultural productivity of new lands · Number of impacted locals employed by the civil works contractors · Seasonal or inter annual fluctuation on key foodstuffs · General relations between the project and the local communities The following indicators will be used to monitor and evaluate the implementation of resettlement and compensation plans; VERIFIABLE INDICATORS Monitoring Evaluation Outstanding compensation or resettlement Outstanding individual compensation or contracts not completed before next resettlement contracts. agricultural season. Outstanding village compensation Communities unable to set village-level contracts. compensation after two years. Grievances recognized as legitimate out of All legitimate grievances rectified all complaints lodged. Pre- project production and income (year Affected individuals and/or households before land used) versus present production compensated or resettled in first year who and income of resettlers, off-farm-income have maintained their previous standard of trainees, and users of improved agricultural living at final evaluation. techniques. Equal or improved production per affected Pre- project production versus present household/homestead. production (crop for crop, land for land). Pre-project income of vulnerable Higher post- project income of vulnerable individuals identified versus present individuals. income of vulnerable groups 34 REPUBLIQUE FEDERALE ISLAMIQUE DES COMORES CADRE POLITIQUE de RECASEMENT (PASS III) Financial records will be maintained by the PIU, to permit calculation of the final cost of resettlement and compensation per individual or household. Each individual receiving compensation will have a dossier containing; · Individual biological information, · Number of people s/he claims as household/homestead dependents · Amount of land available to the individual or household when the dossier is opened. Additional information will be acquired for individuals eligible for resettlement and/or compensation: · Level of income and of production · Inventory of material assets and improvements in land, and · Debts Each time land is used /acquired by the project; the dossier will be updated to determine if the individual or household/homestead is being affected to the point of economic non- viability and eligibility for compensation/resettlement or its alternatives. These dossiers will provide the foundation for monitoring and evaluation, as well as documentation of compensation agreed to, received, and signed for. It is normal that some compensation procedures and rates may require revision at some time during the project cycle. The PIU will implement changes through the Change Management Process in the Monitoring and Evaluation manuals of the project (PIM or Project Implementation Manual), which will require feed back from: · Indicators monitored by the local provincial governments to determine whether goals are being met, and · a grievance procedure for the local community to express dissatisfaction about implementation of compensation and resettlement. 35