RP-44 VOL.2 FORTALEZA METRO SUMMARY OF THE INVOLUNTARY RESETTLEMENT PLAN The Fortaleza Metropolitan Trains Decentralization Project would modernize the existing Northern Line, with an extension of 21 km, linking Joao Felipe Station, in downtown Fortaleza, to Caucaia Station in the Municipality of Caucaia. Although the current system serves high density corridors, it has a small ridership due to low frequency, low speeds, poor quality of equipment and fleet, and low capacity to meet the demand for transportation within its area of influence. The Metro Project basic design was developed from a integrated urban planning view that considers the transport system - structured and modernized -as a key element for the development of the Fortaleza metropolitan region. Within this framework, the project was developed with to the following assumptions: 1. Use of the current right of way of the lines currently operated by CBTU- Brazilian Urban Trains Company, which reduces the number of properties affected as the right of way is well preserved; 2. Maintenance of the metric gauge in order to maximize the use of existing infrastructure, reducing the number of affected properties; 3. Upgrading of existing terminals and stations in order to maximize their use, which reduces the number of affected properties; 4. Change in the radial setup of the RFFSA -Federal Railways Network SA - Northern and Southern lines into a single line, linking Maracanau to Caucaia through a link to be built in downtown Fortaleza; this segment will be underground; 5. Closing off access to the right of way, as it is well preserved; 6.- Integration with other transportation modes, in accordance with an adequate integration policy; all properties were taken into consideration in the Resettlement Planed for developing integration terminals; Therefore, considering the assumptions for the project design, from the assessment of the area through maps and surveys, it was concluded that expropriations are not located along the whole length of the line but rather in specific points, mainly where transposition works, construction of viaducts and pedestrian crossings, new stations, and corrections of curve radius, etc., will be needed. The design of Northern Line, future Western Line, from the Joao Felipe Station to the Caucaia Station is presented in a schematic fashion in annex, with all needed works, the number of affected properties in each of these points, and the distance between them, the expropriations were grouped in 7 points. A survey was undertaken with the dwellers of the 319 affected properties, distributed in the 7 points, and the following profiles were obtained: * TIROL STATION * Families residing in the area for over 10 years; * The majority of the household heads are women over 60 years of age. They are either retired or arecivil servants; * Family income over R$520,00; * They commute to work either by car or by bus; * The typical property is for residential use, self owned, and it has more than 5 rooms; * Properties are officially served with electricity and potable water while waste water disposal is done through septic tanks; * They are located near to a nursery-school, a school and a health center; * Number of affected properties: 14 * Minimum valuation of R$ 11 173,33, and maximum value of R$109 551,58* * Dr. THEBERG BRIDGE / ALVARO WAYNE STATION * Families residing in the area for over 10 years; * The majority of household head are women from 22 to 50 years of age, and they are either regularly employed or retired; * Family income between R$391,00 and R$1040,00/month; * They either walk or take a bus to work; * Properties are for residential use mostly with tenants, and with more than 5 rooms; * Officially, all have electricity and potable water, and waste water disposal is done through septic centers; * They are located next to nursery-school, school and health center; * Number of affected properties: 14 + Minimum valuation of R$3,488.41, and maximum valuation of R$320,716.81 * SOARES MORENO BRIDGE/ ANTONIO BEZERRA STATION/ PERDIGAO SAMPAIO BRIDGE/ COLLEGE FOXHOLE * Settlement started over 15 years with increased density throughout the years up to present day; * The majority of household heads are men from 22 to 50 years of age, and they are self employed; * Family income between R$130.00 and R$390.00; * They either walk or take a bus to work; * The property is for residential use, self owned and with more than 5 rooms; * Officially, all have electricity and potable water, and waste water disposal is done through septic centers; * They are located near a school and health center; * Number of affected properties: 89 * Minimum valuation of R$ 1 360.66, and maximum valuation of R$250,000. * 24th OF OCTOBER BRIDGE/ sAo MIGUEL STATION/ PARQUE ALBANO STATION * Settlement started over 15 years with increased density throughout the years up to present; * The majority of household heads are self employed men, 22 to 50 years of age, * Family income between R$130,00 and R$390,00; * They walk to work; 1 R$ 1.00 = USD$0.56 as of April 2000. * Property is for residential use, and it has more than 5 rooms; * Officially, all of them have electricity and potable water, and disposal is done through pits; * They are located near a nursery-school, school and health center; * Number of affected properties: 60 * Minimum valuation of R$6,369.05, and maximum valuation of R$1 15,030.24 * JUREMA STATION/ DOM ALMEIDA LUSTOSA BRIDGE * Settlement started over 15 years ago with increased density accelerated in the last 5 years; * The majority of household heads are self employed men of 22 to 50 years of age, * Family income between R$130,00 and R$390,00; * They walk to work; * Property is for residential use, self owned and it has more than 5 rooms; * Officially, properties have electricity and potable water, and disposal is done through pits; * They are located near a nursery-school, school and health center; * Number of affected properties: 93 * Minimum valuation of R$803.83, and maximum valuation R$86,016.80 + Profile of affected market worker, self owned stalls with net income of R$ 100,00 per week, selling food and clothing, almost half of them work in the market for over 10 years, and they support 5 people in average per stall; * NOVA METROPOLE STATION The area is totally unpopulated. C CAUiPE BRIDGE/ CAUCAIA STATION * Settlement started over 15 years ago, with increased density in the last 5 years; * The majority of household heads are women from 22 to 50 years of age, and they are either self employed or retired; * Family income between R$130,00 and R$390,00; * They walk to work; * Property is for residential use, self owned and they have more than 5 rooms; * Officially, all properties have electricity and potable water, and disposal is done through pits; * They are located near a school and health center; * Number of affected properties: 47 * Minimum valuation of R$3,795.42, and maximum valuation of R$101,852.23 Expropriation and involuntary resettlement processes are basically social work, and for that reason the population has been and will continue to be consulted, and their opinion and suggestions will be taken into consideration. METROFOR launched a clarification campaign about the Fortaleza Metropolitan Trains Decentralization Project. This work was carried out with household visits to all properties, and meeting with the participation of communities and their leaderships. METROFOR will continue to hold meetings in order to stimulate and to promote community participation, to disseminate the Metro project, promote the resettlement policy, to clarify doubts, to listen to stakeholders, and to capture/record their proposals for solution. Community participation will occur during all stages of the project as this is the only way to assure its success. CBTU and METROFOR will place a team of lawyers, engineers and facilitators to advise the expropriated on regularization of their personal documentation and those related to their property, thus helping the process to be carried out in shorter time, and to minimize its impact. Based on just compensation, the involuntary compensation policy of the Fortaleza Metro Western Line aims at maintaining at least the present living conditions of the affected population. However, even good assessment methodology is not always sufficient to account for losses arising from an involuntary resettlement process. There are losses which are not measurable such as the loss of neighborhood and family ties, of the social support network, of affectivity, of the established tradition between place of living and their dwellers who have lived there in many cases for generations. METROFOR policy aims at making possible the reconstruction of community ties, as well as the recovery or improvement of living standards, of the productive capacity, of the household condition, and assuring compensation for all possible losses. CBTU and METROFOR, sponsors of the process, will guide, clarify all those affected about their rights and options while the final decision will always be that of the citizen affected by the works. Compensation policy will be implemented in such a manner that owners or tenants of all 319 affected properties will be able to rebuild their lives. In order to establish the policy to be adopted, two possible options were appraised: resettlement to housing projects and monitored compensation. Resettlement option has received low support from stakeholders, and technically it is recommended that if done, it should take place in several small groups. The compensation option is preferred by most families, but it must be applied in such way that it really promotes effective possibility of better living conditions. Considering the analysis undertaken, contacts made in the visits to the affected dwellings, in meetings with leaderships and stakeholders, and the assessment undertaken, the promoting entities, CBTU e METROFOR propose that in the specific case of the Fortaleza Metro Western line, the compensation to be offered should be that one of monitored compensation. Under this program, resettled families will receive assistance from a team including engineers, attorneys and J social workers to ensure that families have full information about the choices available to them. If necessary, families would receive assistance in locating suitable substitute housing, and renovating such housing as needed. However, it is necessary to establish a policy that not only compensates material losses derived from the project, but also minimizes the negative impacts created by the involuntary resettlement process. Evaluation reports are only a starting point for the composition of the compensation amount because it is based in the concept of replacement of the affected property and in compensation for non measurable losses. Therefore, the assessed value of a property is only a portion of the final compensation value that those affected would receive. The other portion is represented by non measurable losses previously described in this report, and by the recognition of the right to and to the access to land even for undocumented households. Thus, the final amount to be paid is the sum of the assessed value plus compensation for non-measurable value. As stated, there are losses that are not measurable, but need to be compensated, and for that reason CBTU and METROFOR adopt as compensation principle an initial compensation value that will assure the reinsertion of the family in the real estate market, and from this initial value, denominated PO, a progressive subsidy table should be established. Therefore, the evaluation amount is just a portion of final compensation to be received by affected dweller. The other portion is represented by the compensation offered by the non measurable damage suffered by the family. Thus, one realizes that the final amount to be paid is the sum of the evaluation amount plus the compensation percentage rate. As a result, the owners of smaller and poorer dwellings will have a possibility to receive sufficient compensation to recompose and even to improve their housing conditions. Property owners with higher assessed values will received a smaller subsidy. About 112 market stalls that operate in Jurema from Saturday until Monday which are located in the streets, sidewalks and next to the railway crossing were inventoried. These barrack sell clothing, food and household appliances. This trade is responsible for the livelihood of almost 600 people, and the construction of a new station in Jurema, and mainly for the highway bridge in the. Dom Almeida Lustosa Av would jeopardize this street market. CBTU and METROFOR will therefore establish a resettlement area and the organization of this street market that currently operates in a spontaneous fashion. Among the possible places to locate this "popular shopping", the most appropriate areas are those future remnant areas of the bridge to be built at Dom Almeida Lustosa Ave.. The choice of this area presents the following positive aspects: it is practically in the same place of the present street market, it has enough area, adequate topography, there will not be any expropriation as its costs is already included in foreseen expropriations for the bridge construction; This area will have infrastructure ( paving. Public lightning, water and sanitary outlets), and it will be managed by the Municipality of Caucaia. With this relocation, the impact generated by the Project will be lessened. The Project institutional framework is very simple: CBTU- The Brazilian Urban Trains Company - will manage the whole program through its Project Management Unit - PMU. METROFOR - the Metropolitan Transportation Company of Ceara, will be responsible for the works related to the Fortaleza Metropolitan Trains Decentralization Project, and it will be responsible also for execution of the resettlement project in all of its stages including the role of articulating with other agencies involved in the project. For accomplishment of all these actions, a resettlement office has been established within the framework of the METROFOR - the Metropolitan Transportation Company of Ceara - reporting directly to the Operational Directorate, and which will be in charge for executing the Resettlement Plan. This office will be advised or staffed by experienced professionals who have had effective participation in similar resettlement projects in order to assure that the criteria proposed by this plan is implemented correctly, mainly in relation to the monitoring of compensations, to legal and social advising to the more vulnerable families. With this support, it is intended to assure that the resettlement of families does not take place in a traumatic way. The proposed timetable for the execution of the Involuntary Resettlement Plan is presented in annex, and it was designed in a way to not inflate local real estate values. In addition, the expropriations will take place in different points, and they are not concentrate in just one place. The resettlement process will have to be totally concluded in all segments before they are released for the start of the works. Involuntary Resettlement Proiect Budget ACTIVITIES Unit Quantity. Unit Value TOTAL (R$ 1000) 1. Payment of Indemnities with applying the compensation table Worksl: Tirol Station hh2 14 594.14 Works2: Dr. Theberg Bridge/ Alvaro hh 14 814.95 Wayne Station Works3: S. Moreno Bridge/ Antonio hh 88 1887.28 Bezerra Station/ P. Sampaio Bridge/T. of the College Works 4: 24 h of October/ Sao Miguel hh 65 1028.01 Station/ Parque Albano Station Works5: Jurema Station/ Dom hh 93 1414.77 Almeida Lustosa Bridge Works6:. Nova Metr6pole Station hh Works7: Cauipe Bridge/ Caucaia hh 45 1203.69 Station Removal allowance hh 319 150.00 47.85 Living allowing( tenant) hh 43 1500.00 64.50 Compensation process monitoring gl 194.460 194.46 Sub - total 1 7249.65 2.1mplanting Infrastructure in the market area Infrastructure M2 1000 93.64 93.64 Sub - total 2 93.64 3.Legal Expenses Legal suits Distribution hh 30 700.00 21.00 Legal Expertise hh 30 1200.00 36.00 Notary Expenses hh 90 700.00 63.00 Sub - total 3 120.00 4.Recurrent Expenses ( 3%sub-total) 223.90 TOTAL 7687.19 Notes on the budget: 1. Compensation amounts were calculate taking into consideration the assessment for all affected properties undertaken in February and March, 2000, for the Expropriation Project for the Western Line of Fortaleza Metro, and applied the compensation table presented in item 10.0; 2. It has been estimated from previous experience that about 10% of expropriations will need to be settled in court; 3. About 3% of the total is a contingency reserve. 2 Household The involuntary resettlement component will be implemented entirely with Federal funds through the Ministry of Transportation, via CBTU- the Brazilian Urban Trains Company, which will be responsible for the total amount of investments of about R$7,687,190 (US$ 4,318,646). The resettlement plan includes monitoring of the program. Monitoring seeks to evaluate if proposed goals are being met, and if it is the case, it shall propose needed changes for the good performance of the Project. Monitoring should take place in 3 stages, the first, before the negotiation process starts, the second after the negotiation process is finished, and the last stage should take place within 6 - 12 months after the end of the negotiation process. The plan recommends special attention to the following points: 1 .Timely availability of funds for the project in the amounts and deadlines needed; 2.Legal advice to those affected prior to the beginning of the negotiation stage; 3.Maintenance of a communication channel between the proponent agencies and the affected population; 4.Keep understandings with market workers and the Municipality for relocation of the Jurema Market within an appropriate time frame.