Document Sample
					Government of Sao Tome and Principe                                  Resettlement Policy Framework

                          GOVERNMENT OF SAO TOME AND PRINCIPE

                                Social Sector Support Project (SSSP)
                                        Additional Financing

                            RESETTLEMENT POLICY FRAMEWORK 1

                                           ALKA KOTHARI

                                      Updated on October 31, 2009

   1 This is an update from the original report prepared in 2004 for the purpose of the IDA-
   financed Social Sector Support Project.


                                 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

Government of Sao Tome and Principe                                    Resettlement Policy Framework

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                                                    3
Government of Sao Tome and Principe                                      Resettlement Policy Framework

                                 Social Sector Support Project (SSSP)

                                          Additional Financing


This Resettlement Policy Framework (RPF) is an update of the original framework prepared in
2004 for a Social Sector Support Project (PASS). This update focuses on the additional financing
of the Social Sector Support Project (SSSP) granted to the Republic of São Tome & Principe for
an amount of US$2.4 million. The development objective of the proposed additional financing is to
contribute to improving delivery of basic education services, with a focus on greater and more
equitable access, better quality, and improved local governance.

The Grant will allow for the scaling up of ongoing health interventions launched under the PASS. It
will particularly contribute to: (a) improving equity and access to basic health services; (b)
improving the quality of basic health services; (c) cross-sectoral issues (HIV/AIDS and Malaria.
The following activities to be funded by the CF Grant have been identified:

       (i) Improving access and equity to basic services. Activities under the first sub-component
           include the rehabilitation of the health center in Porto Alegre to complete the set of
           rehabilitation works of relevant health centers that have been carried out with the support
           of the project, and the construction of four residences for health staff in the district of
           Cantagalo and the island of Principe, which are deemed necessary to retain and motivate
           health staff in these remote areas of the country.

(ii)       Improving the quality of basic health services. The quality sub-component includes
           capacity building and training activities such as developing alternatives for the medium-
           term financing of the health sector, as a first step towards a financial sustainability of the
           health system; rehabilitation and equipment of the health national school and a high-level
           training of its personnel, particularly nurses and managers; validation and pilot experiment
           of the health information system set up with the support of the Project; pursue the use of the
           media to promote health prevention attitudes among the population, including issues of
           reproductive health; and training of teachers of primary schools on visual, oral, and
           intestinal health as a complement of the ongoing de-worming program in schools.

       (iii) Cross-sectoral issues (HIV/AIDS and Malaria): This component has two sub-components:
             HIV/AIDS and Malaria. Activities under these sub-components include the rehabilitation
             and expansion of National Center for Endemic Diseases (Centro Nacional de Endemias) to
             help improve its functionality; the training of key health staff working on HIV/AIDS
             program; and the purchase and distribution of condoms for the prevention of HIV/AIDS
             transmission, in line with what the Project has been doing over the last years

The preparation of a Resettlement Action Plan (RAP) is not required at this stage since the
project will finance classrooms on existing school sites. 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 activities that will be prepared during project implementation in compliance with
the laws of STP and the Bank’s safeguards policy on resettlement.

                                                     4                                                   4
Government of Sao Tome and Principe                                   Resettlement Policy Framework

    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 in activity design.
    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.
    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;

                     (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 this project, the policy also
    requires that the implementation of resettlement plans are a pre-requisite for the
    implementation of activities to ensure that displacement or restriction of access does not occur
    before necessary measures for resettlement are in place. For activities involving land acquisition, it
    is further required that these measures include provision 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 activities requiring relocation or loss of shelter, the policy further
requires that measures to assist the displaced persons are implemented in accordance with the
activity’s resettlement plan of action.

The policy aims to have the displaced persons perceive it to be fair and the compensation process


To address the impacts under this policy, activities 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 activity as well as costs incurred as a result of

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 activity requiring land and to
determine the sizes of the individual pieces of land that will be acquired. It would also 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 activities 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 p l a n s a r e
c o n s i s t e n t w i t h t h i s f r a m e w o r k p o l i c y a n d a p p r o v e d b y t h e Bank.

Therefore, each activity 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 activities that it receives from the beneficiaries. The

Screening Process

The screening process would take the form of;

1.)     Classifying the activities 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 activity on the resettlement

3.) Triggering of the resettlement policy would require a preliminary determination of
       whether the activity 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 Point can then decide to present its case even where
       extensive/cumbersome mitigation measures are deemed necessary in the activity.

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.
5.)     Using of the Socio Economic Studies to identify affected people on the household level and
        vulnerable groups in the activity 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 FP in the preparation of the activities to
enhance their likelihood for approval. Notwithstanding, at the level of the DoI activities
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
activities 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 activity is taken, the DoI will need to approve or disapprove the
resettlement plan of the activity in totality with the overall environmental and social
screening process that has been applied for each activity 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 activities focus only on constructing additional classrooms on existing school facilities.


At this stage any attempt to quantify the estimated likely number of people who may be affected
would be at best, unreliable, since the activities have not all been identified.

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 activities 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 an activity.

    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.

                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 activities need for agricultural land. If a building of
                   theirs lies on land needed by a activity, 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).


The Bank’s OP 4.12 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

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
activity area is carried out, i.e. the time when the activity 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



STP was colonized by the Portuguese in the late 15 t h 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 P o r t u gu e s e p l a n t a t i o n o w n e r s . T h e
p l a n t a t i o n l a b o r s ys t e m w a s t h e economic model of STP development, which
depended entirely on slavery, i ndent ur ed and cont ract mi gr ant labor . After the
abolit ion of slaver y, workers, though freed in theory, were still forced to work on the

As for agricultural production, after colonization, STP soon became the world’s
largest producer of sugar. Having lost their dominance in sugar pr o d u c t i o n t o t h e
C a r i b be a n i n l at er c en t u r i e s, t h e y b e ga n t o c e n t e r production around cocoa and
coffee in the nineteenth century. In 1909, the Portuguese colonial authorities attempted to
restrict re-contracting in the face of growing international pressure; in practice, indentured
labourers had no chance of leaving the service of the plantation they had been alloc ated 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 i ts close association wi th 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

Following ST P’ s i ndependence, t he roças were nationali zed and l at er regrouped
into 15 Empresas Estatais Agro-pecuárias (State Agriculture and Livestock Enterprises,
called empresas for short), which was defended as the necessar y r esponse t o the fli ght
of t he Port uguese. The fir st Republi c e mb r a c e d s o c i a l i s t s p o l i c i e s , e s p e c i a l l y
c o n c e r n i n g l a n d t e n u r e a n d 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, th e 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 Tom é 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 Article 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 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 OP 4.12. 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

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.
     Perennial                          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.

Government of Sao Tome and Principe

                                                            Resettlement Policy Framework


                  Type of Loss                                                  ENTITLEMENTS
Category of

                                                                                                     Moving Allowance Other Assistance
                                                         Compensation for
                                      Compensation for                           Compensation for
                                      Loss of Structures                         Loss of Income
                                                         of Land and other

Property Owners   Loss of Land        Replacement Costs                       Crops at market        None
                                                          Land replacement at rates
                                                          new site, plus land in scarce season
                                                          clearing by the

                                                                               For lost rental
                                      Compensation at
                  Loss of Structure                       (Fences (wire, wood) income,                                 Disturbance
                                      full                                                           Moving to be done
                  Residential or                          at                   Lump sum cash                           Allowance of US
                                      replacement value                                              free by project
                  Business                                US $....             payment of 6                            $100 (min.)
                                      not depreciated
                                                          Wells at US $.....
                                                                                 rent per tenant.

                                                          Stores at US$....
                                      No loss of structure, Replacement costs    No loss of income
Residential       Loss of rental                                                                     Free moving if        6 months rent
                                      can receive           for
Tenant:           accommodation                                                                      notification before   equivalent for
                                      assistance            non-movables if

                                                                                                          deadline           disturbance
                                         in locating
                                                             installation was
                                                             with owner.
Business             Loss of Premises    No Loss             Replacement cost for For loss of business Free moving if
Tenant                                                       facilities that cannot                    notification before
                                                             be                     income, receive    deadline
                                                             moved                  their
                                                                                    wages during the
                                                                                    move and re-

                     Loss of Land        None                                                             None
                                                             Where possible           Crops at market
                                                             assistance in securing   rates
                                                             other access to land     in scarce season.
                                                             for                      For
Encroachers                                                  crops growing            street vendors on
(using Land)                                                 subject to               right
                                                             approval of local        of ways possible
                                                             authorities/communit     access to other
                                                             ies.                     sites/locations

                     Loss of Shelter     Compensation at       None                   Payments in lieu of Receive a moving   Disturbance
                                         full                                         wages while         allowance          allowance of US$...
                                         replacement value                            rebuilding
                                         structure, relocation
Squatters                                to
(living on Site)                         resettlement site,
                                         payment of site

n.b.: all payments to be made in dobras. Dollar values indicated in table to allow for international interpretation/conversion only.


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.

EFA/FTI 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.

                                     Compensation will be calculated in dobras. Rates will be
                                     adjusted for inflation.
Cash Payments
In-kind Compensation
                                     Compensation may include items such as land, houses, and
                                     other buildings, building materials, seedlings, agricultural
                                     inputs and financial credits for equipment.

                                     Assistance may include moving allowance, transportation
                                     and labor

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 EFA/FTI.

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 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 i nvested 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.

• 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.



                                                                         Labor in dobras/ha
                                             Month Paid
                                                                      Rate Cost/day x no. of days

               Clear                            March
               Plough                           May
                Sow                             May
                Weed                           May
               Harvest                       November

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 struc tures 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 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.

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
                                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 Bathin                  .
Latrine                         Replacement latrines will be similar to those currently operational
                                and financed
                                by the bank or other donor agencies at health centers, schools.

                                Internally lined with concrete rings and provided with a hand
Open well
                                driven pump.

                                Cement/sandblock walls with thatched roof on z-profiled metal
Storage building

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 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.

       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

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
                         Years        Local Guava and Mangoes                    Support.
  Type/Age of Tree
Sapling                   0-1                                                            •
Trees planted after                  Deliver to                                      Dobra
project                               Farmer:                                            s
cut-off date in area will          •    Choice of two cacao trees
not                                    (local and/or improved grafted)
be eligible for                    •    Supplies: fencing to protect
compensation                           Tree, a bucket for watering, and a

Sapling/Young Tree     1-6
First minor production
                                     Deliver to                             Equivalent of X no. of
                                                                            dobras in credits or
                                   •    Choice of cacao trees
                                                                            financial support for
                                       (local and/or improved grafted)
                                   •    Supplies: fencing to protect
                                                                            invested in planting,
                                       Tree, a bucket for watering, and a   fencing, and watering,
                                                                            made in one payment.

Mature Cacao Trees       6-30+       Deliver to                             Equivalent of X no.
                                       farmer:                              dobras
                                   •    Choice of two cacao trees           in credits or other
                                       (local and/or improved grafted)      financial
                                   •    Supplies: fencing to protect        support for labor
                                       Tree, a bucket for watering, and a   invested
                                       Spade                                in planting, fencing, and
                                                                            watering, made in one
                                                                            Equivalent of X no.
                                                                            in credits or other
                                                                            support, representing
                                                                            years, (8 years x 10
                                                                            sacks x
                                                                            X DOBRAS/sack) lost
                                                                            replacement trees begin
                                                                            This rate to be agreed
                                                                              Total: Equivalent of
                                                                              X no. dobras in cash
                                                                              or equivalent
                                                                              financial support to
                                                                              be paid in one

    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

    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 o f surface area removed. The total
    surface area of the tree will be calculated using the following formula: (½ diameter of canopy )2 x

                                      INDIVIDUAL COMPENSATION
           Sub-Category                         Unit        Compensation Value
                                                             (X no. of DOBRAS)
foodstuffs & others(e.g.
                                          To be determined
Rubber, wood, timber                        To be determined

    Individual Owned Wild Productive Trees



    Fruit Trees


          Bread Tree



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

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 communities 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. Communities 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 communities 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 AFAP
        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

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, communities 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.

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 coop/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

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 re settlement 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. The Project 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:

 No.                            Item                                 Costs (in
                                                                     Dobras) *

 1     Compensation for loss of Land                                                     For land acquisition purposes,
                                                                                         based on cost realized in
                                                                                         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
 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
 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
 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
       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 communities                                                             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

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 communities the
opportunity to contribute to both the design and implementation of the project activities and reduce the
likelihood for conflicts between and among communities 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.

The arrangements for monitoring would fit the overall monitoring plan of the entire project which
would be through the Project Implementation Unit (or AFAP).

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

          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
          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.
          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;

Monitoring                                            Evaluation

Outstanding compensation or resettlement
                                                   Outstanding individual compensation or
contracts     not completed     before next
agricultural season.                               resettlement contracts.

Communities unable to set village-level            Outstanding village compensation
compensation after two years.                      contracts.

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
trainees, and users of improved agricultural       have maintained their previous standard of
tech                                               living at final evaluation.
                                                   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
income of vulnerable groups

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

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.

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