Regional Rusumo Falls Hydroelectric Project (RRFHPP) Addendum to the Main Resettlement Action Plan (RAP) Site Specific RAP for Land on Tanzania Side- Land for an Absentee PAP. APRIL 2020 RAP Addendum; land for absentee PAP–Tanzania side 1|P a ge Table of Contents ACRONYMS ......................................................................................................................................... 4 1.0 Back Ground and Introduction.......................................................................................................... 5 2. Description of the Site and Land Requirements ................................................................................. 5 2.1. Location of the Site ...................................................................................................................... 5 3.0 PAP Identification and Demarcation............................................................................................ 7 3.1 Land for an Absentee PAP in Mitako Area............................................................................... 7 4.0 Valuation Process for the Land for the Absentee PAP....................................................................... 8 4.1 Valuation Methods ....................................................................................................................... 8 4.1.1 Land Valuation ........................................................................................................................ 8 Source: Field Survey April 2014 - Verified December 2017– Same as used today no changes ........... 9 4.1.2. Valuation for Crops ............................................................................................................... 9 4.2 Eligibility Criteria and Entitlement Matrix ............................................................................... 9 4.2.1 Entitlement Matrix ......................................................................................................... 10 4.2.2 Payment of Interest............................................................................................................. 10 5.0 Public Consultation .................................................................................................................. 10 6.0 Livelihood Restoration Program ............................................................................................ 11 7.0 Implementation, Monitoring and GRM ..................................................................................... 11 8.0 Payment of Compensation ........................................................................................................ 11 ANNEXES .................................................................................................... Error! Bookmark not defined. Annex 1 ..................................................................................................... Error! Bookmark not defined. RAP Addendum; land for absentee PAP–Tanzania side 2|P a ge List of Tables Table 1: GPS coordinates of the affected area. Table 2- Summary of land acquired, number of property owner and compensation values Table 3: Summary of affected properties of the PAP. RAP Addendum; land for absentee PAP–Tanzania side 3|P a ge ACRONYMS AfDB African Development Bank ANB Annual Income of Building BNV Brand New Value ESIA Environmental Social Impact Assessment CP2 Contract Part two. GIS Geographical Information System GPS Global Positioning System HH Household GRM Grievance Redress Mechanisms LRP Livelihood Restoration Program LV Land Value MW Megawatts NBI Nile Basin Initiative NELSAP Nile Equatorial Lakes Subsidiary Action Program OE Owners Engineers PAP Project Affected People PIU Project Implementation Unit RAP Resettlement Action Plan RCM Resettlement Committee Members RoR Run of River RRFHPP Regional Rusumo Falls Hydro Power Plant RPCL Rusumo Power Company Limited RV Residual Value SY Switch Yard WB World Bank RAP Addendum; land for absentee PAP–Tanzania side 4|P a ge 1.0 Back Ground and Introduction Regional Rusumo Falls Hydro Power Project (RRFHPP) is implemented by the Republics of Rwanda, Tanzania and Burundi in partnership with Nile Equatorial Lakes Subsidiary Action Program (NELSAP). The hydro power plant is estimated to produce about 80 MW on the Kagera River at the Rusumo Falls located on the border between Rwanda and Tanzania under a Run of River (RoR) scheme. A Resettlement Action Plan (RAP) was prepared in accordance with World Bank (WB) social safeguard requirements; OP 4.12 “Involuntary Resettlement”, in accordance with the legislative policies governing resettlement in the two affected Republics of Rwanda and Tanzania. The RAP was disclosed in March 2013 and is the basis for this RAP Addendum. This is an addendum to the RAP to address compensation for the land of an absentee PAP whose land was acquired in Mitako near the adit at the Power House. The land was left out of the initial RAP since the PAP was away from the area and did not receive any news on the on-going land acquisition process. Upon his return to the area, he brought his concerns to the Project whereby consultations were undertaken to verify his claim. The Village Authorities and some of the Resettlement Committee members confirmed his claim to the land. 2. Description of the Site and Land Requirements 2.1. Location of the Site The land is located within the power house area near the Kagera River. The total surface area of the land of the PAP is 2 233.0sqm. The GPS coordinates of this area are presented in the Table 1 below. Table 1: GPS coordinates of the affected area. GPS COORDINATES LIST Points Eastings Northings P1 253515.00 9737122.00 P2 253532.00 9737112.00 P3 253524.00 9737087.00 P4 253500.00 9737061.00 P5 2534181.00 9737055.00 P6 253463.00 9737073.00 RAP Addendum; land for absentee PAP–Tanzania side 5|P a ge Table 2- Summary of land acquired, number of property owner and compensation values Detail of land, crops, and type of houses S/No land acquired Land Size – As Number of property Compensation value Valuation Report per valuation owner of affected report properties - Tshs Square Meters 4th land acquired - Land for an absentee 2,233.0 sqm One (1) PAP XXXXXXXXXX Summary Payment not yet PAP i. Land value XX done ii. Crop value XX iii. Total Allowances XX Land for an absentee PAP Valuation Report dated May 2019 TOTAL COMPENSATION AND NUMBER OF AFFECTED PEOPLE 1 XXXXXXXXXX AND GROUPS INTEREST DUE (as compensation was not paid within 6 months XXXX of rights to land being revoked) TOTAL AMOUNT NOT YET PAID XXXXXXXXXX RAP Addendum; land for absentee PAP–Tanzania side 6|P a ge 3.0 PAP Identification and Demarcation 3.1 Land for an Absentee PAP in Mitako Area The PAP complained verbally in 2017 during the valuation exercise for the access road to power house and submitted an official written complaint on 24th April 2018 - registered with a tracking number of GR/T/036. He complained that the Project did not compensate him for the land that was initially acquired for the Power house in 2014-2015. He was away and uncontactable during the assessment exercise and did not have any representatives to stand in for the assessment. The Project requested for the Resettlement Committee and the Village Authority to verify the claims. They visited the site and confirmed that during the initial valuation exercise, the land was left out of the compensation since the owner could not be identified as they were informed by the neighbors that he was away from the area. Despite the land being required for the power house construction activities, as of May 2019 the land had not been impacted. It was therefore possible for the valuer to determine the extent of the land affected and the crops that were present on the land. During the valuation process the PAP, Village Chairman, a NELSAP representative and the Valuer were present. Below is a summary of the affected properties for the PAP which include loss of access to 0.551 acres of land used for subsistence agricultural crops along with the loss of a number of crops (which were still productive at the time of the compensation). The PAP is also entitled to allowances as per the requirements of the original RAP and the payment of interest due to the delay between the valuation report being developed and the payment of compensation. Table 3: Summary of Affected Properties the PAP. NAME AND Number of months PROPERTY QUANTITY/AREA PERCENTAGE REFERENCE for the 8% interest. DESCRIPTION NUMBER 12 Land, Building & Crops VAL/RRFHP/NGR/07 Acres Square Meters Land CROPS Grevilia 100 Yams 100 Banana 50 Mikoto 100 Mikoto 100 INTEREST 12 months 8% RAP Addendum; land for absentee PAP–Tanzania side 7|P a ge 4.0 Valuation Process for the Land for the Absentee PAP The valuation exercise was conducted by an Authorized Tanzanian Government Valuer who conducted and led the valuation exercise in partnership with the district officer in charge of lands (Ngara district) and Rusumo Village Governance in the presence of NELSAP/PIU. The land valuation was approved by the land valuer and District Commissioner on 17th June 2019 in line with The Valuation and Valuers (General) Regulations 2018. 4.1 Valuation Methods The valuation of affected assets was done by an Authorized Government Valuer in accordance with the laws of the Republic of Tanzania governing land acquisition processes in public interest. This was also done in consideration of the WB OP 4.12 on Involuntary Resettlement and the approved 2013 RAP for the Project. There has been no change in the compensation rates for land and assets since the initial RAP1, compensation for crops was based on the 2015 crop compensation schedule2. Additional allowances were also paid in line with Tanzania law as outlined in the overall RAP for the Project. 4.1.1 Land Valuation Land value was assessed using the Land Act No.4 of 1999, Land Act No.4 of 1999 sec 3(1)(a), (f) and (g) value for land. Land values have been arrived at basing on the current market value of land within the area and with regards to the previous valuations carried out for compensation. Hence the land adopted land value (current) is of Tshs. 5,000 per meter square. There have not been any changes in the value of land between the initial compensation and this compensation payment. As marsh land is considered to be hazardous land where development is not permitted in line with the initial RAP compensation is not paid for this land. Indicative Unit Price of Land According to its Location and Use No Location land Unit price Tshs. USD Equivalent 1 Commercial land located on tarmac road 15,000 Tshs/sq m 9 USD/Sqm 2 Residential land located behind the commercial 10,000 Tshs /sq m 6 USD/Sqm properties near tarmac road 3 Agriculture land located away over 100m off 5,000 Tshs /sq m 3 USD/Sqm tarmac road & near the marshlands 1 Additional land for the administrative building was acquired by the Project in December 2017. At this time a review of the 2014 values was undertaken and were determined to be valid. The valuation for this RAP was undertaken within 2 years of the verification exercise and were therefore determined by the registered valuer to be valid. The same valuation report states that the 2015 crop compensation schedule provides for full replacement value. 2 The crop compensation schedule is developed by the Ministry of Agriculture, Livestock and Fisheries in cooperation with the Chief Government Valuer. RAP Addendum; land for absentee PAP–Tanzania side 8|P a ge 4 Hazardous lands: - All marshy lands, Mining areas, 0- Tshs/sq m 0- USD/Sqm Rocky, steep slope -hilly lands Source: Field Survey April 2014 - Verified December 2017– Same as used today no changes 4.1.2. Valuation for Crops The valuer evidenced various crops especially perennial and seasonal crops by carrying out inspection and counting number of crops per household per stem or cluster as directed by the Valuation Act No.7 of 2016 read with crop compensation schedule for the Lake Zone commencing on 2015. Annual and perennials crops were assessed in compliance with the government compensation schedule of 2015 basing on replacement cost of each crop, which is the most recent schedule and has therefore been used for this valuation. Compensation rates were calculated in compliance with the full replacement value principle for permanent crops. The rates were adjusted according to age, condition and productivity: • Seedlings 15%; • Aged crop 25%; • Average crop productivity 50%; and • Optimum proclivity 100%. There have not been any prices changes for crops between the initial compensation and during the acquisition of land for the project. 4.2 Eligibility Criteria and Entitlement Matrix According to the main RAP all people and entities who suffer losses and incur negative impacts due to the acquisition of land for project and other project infrastructure will be considered to be eligible for resettlement entitlements, provided that they own, occupy or use the affected land prior to a cutoff date. Displaced persons will be considered to be eligible regardless of their tenure status with respect to the land and Assets, including structures and fields, that were surveyed in the project affected area at the cut-off-date are eligible for compensation, if these assets, structures and fields are determined as project affected. People residing or holding affected assets in the project affected area at the cut-off date are eligible for compensation. The types of impacts identified as eligible for compensation in this RAP are: § Loss of crops; and § Loss of land. RAP Addendum; land for absentee PAP–Tanzania side 9|P a ge 4.2.1 Entitlement Matrix The Entitlement Matrix detailed in the 2013 RAP was used to guide determination of entitlements. 4.2.2 Payment of Interest In line with the Land (Assessment of the Value of Land for Compensation) Regulations, 2001 interest must be paid on all compensation where there is no prompt payment of compensation. Prompt Payment of Compensation is defined as ‘within 6 months after the subject land has been acquired or revoked’. Interest is paid at the average percentage rate of interest offered by commercial banks on fixed deposits until the compensation is paid. Furthermore, the Valuation and Valuers Regulation Act 2016 requires that an entity which fails to effect prompt payment of compensation shall in addition to the principle sum be liable to pay an interest to be changeable at the average percentage rate of interest offered by commercial banks on fixed deposits until such compensation is paid. In this case payment of interest is therefore due for 12 months as the payment was supposed to be paid in December, therefore is still within 1-year i.e from June 2019 until March 2020. The rate of interest is 8%. Calculation of additional compensation due to delay of payments Formula of compound interest: A= (P(1+r)^n)-P) A Amount P Principal I Interest (8%) Number of period n elapsed (Years) 1 Valuation Compensation Interest Total Compensation number Amount - Tshs Interest rate in % amount with Interest VAL/RRFHP/NG R/07 X 8 X X TOTAL X X X 5.0 Public Consultation Public consultation was done following the verification and dentification of the required lands and owners through community leaders. Several consultations have been held between the Project and the affected person since he reported his concerns. The Project forwarded the concern to the Resettlement Committee and the Village Authorities for verification of the claim. The meeting confirmed that his land was left out during the compensation as well as identifying the neighboring plots of land that were compensated. Also, the committee RAP Addendum; land for absentee PAP–Tanzania side 10 | P a g e recommended to the Project to proceed with assessing the affected properties and compensate him accordingly. Prior to the payment of compensation, the PAP will be met with to inform them of the payment, the inclusion of interest payments and discuss his inclusion in the LRP. 6.0 Livelihood Restoration Program The lost farm land was a means of livelihood to the affected person. An assessment of the PAP will be undertaken as soon as he receives his compensation funds to determine if they require livelihood restoration associated with the loss of income from farming. If needed the PAP will be invited to opt into one of the existing LRP program to ensure that his livelihood is restored accordingly. 7.0 Implementation, Monitoring and GRM The identification of the PAP was informed by the grievances received following the backwater flooding effect. The valuation exercise was monitored by the NELSAP/PIU’s Social team. The PAP was reminded about the availability of the GRM in case of any complaint concerning the valuation process. The PAP used the existing GRM to submit his complaints to the Project Liaison Officer whose office is located in Rusumo Village. The valuation was completed within a period of three days with no reported grievances. According the Project Appraisal Document of 2013, RAP implementation monitoring will be included in the project completion report and is also being monitored through follow up by the project and Standard of Living Reports being written periodically by an independent consultant. 8.0 Payment of Compensation This RAP addendum was cleared by the WB on 4th May 2020, after which the compensation process began immediately. Compensation payment to the PAP for the loss of land and crops was effected on 20th May 2020. The 8 % interest incurred due to the delays of payment of compensation was exclusive to what the PAP was paid since the Project budget for the FY 2019/2020 did not include this budget line. Instead the interest payment was included in the new budget for the FY 2020/2021 and will be paid immediately after the budget has been approved by the RPCL Board of Directors’. The compensation was however not paid in full as expected due to inter banking transfer charges that were deducted from the beneficiary. Compensation During the signing of the disclosure forms, PAPs were informed that the Project will cover the inter-bank transfer charges and that they will received their compensation in full. The Project is responsible for paying back the deducted costs as the PAP is to receive his compensation in full. Following the concern of deductions of compensation funds, the PAP was advised to bring his bank statement to get the actual funds he had received so as to request and process for payment of the deducted amount. RAP Addendum; land for absentee PAP–Tanzania side 11 | P a g e