Appendix A NEDP Resettlement Policy Framework by wuyunyi

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									                                                                            RP329
NIGERIA: National Energy Development Project

                     NEDP Resettlement Policy Framework

1.      Introduction
         1.1 Purpose of this document
The World Bank plans to finance a National Energy Development Project in Nigeria.
The project will include, among other things, sub-projects to upgrade and refurbish
transmission and distribution infrastructure. However, these sub-projects have not yet
been planned in any detail. For instance, the specific sites that will be upgraded and
refurbished have not yet been selected. Therefore, it is not yet known whether and how
the sub-projects may affect people’s property, places of business, homes, fences, crops,
trees, etc. Of course, every effort will be made not to harm people’s assets or incomes in
any way. Nonetheless, the sub-projects may cause some damage.

In order to safeguard people’s interests, the World Bank requires that policies and
procedures be worked out in advance as to how people will be compensated for lost
assets and income.

This document, the NEDP Resettlement Policy Framework, lays out the overall policies
and procedures for identifying and providing compensation, assistance, or both to people
whose assets, income, or standard of living are harmed by project activities. It also
contains a preliminary description of the population and categories that might or might
not be negatively impacted by the project and spells out the eligibility criteria. Further, it
describes the Nigerian legal framework, laws and regulations that will be used to
compensate the affected population as well as reviewing the fit and gaps between the
Nigerian legal framework and bank Policy (OP/BP4.12) and its requirements and
proposes measures to bridge any gaps. The document also describes the methods of
valuing affected assets, describes the implementation process, the grievance redress
mechanisms, and the arrangements for funding the resettlement. It also presents an initial
budgetary provision within the project to finance the possible resettlement, and identifies
the flow of funds and contingency arrangements. Finally it describes the mechanisms for
consultation with and participation of displaced persons in planning, implemention and
monitoring as well as the arrangements that will be taken for monitoring by the
implementing agency and, if needed, by independent monitors. The attached
Resettlement Action Plan template, gives more specific guidelines on how to proceed in a
given location.

         1.2 World Bank Resettlement Policies
The World Bank has ten Safeguard Policies to reduce or eliminate the adverse effects of
projects. One of the Safeguard Policies deals with resettlement. As explained below,
“resettlement” in World Bank parlance means not only the physical relocation of people,
but also compensation for any loss of land, other assets, income, etc. due to project
implementation.
World Bank policy requires, first, that every effort be made to avoid resettlement.
However, should it become necessary, the procedures and policies on resettlement are
spelled out in the following World Bank documents:
      BP 4.12: Involuntary Resettlement, and
      OP 4.12: Involuntary Resettlement, which includes three annexes.
The Resettlement Policy Framework and the Resettlement Action Plan template
presented here are modeled closely on the instructions for such documents given in OP
4.12: Annex A: Involuntary Resettlement Instruments.

All the World Bank Safeguard Policies, including the ones on resettlement just cited, may
be obtained at the World Bank web site, www.worldbank.org.

The World Bank’s Disclosure Policy requires that safeguard-related documents, such as a
Resettlement Policy Framework and a Resettlement Action Plan be
 prepared before project appraisal, and
 made available in Nigeria before project appraisal, at publicly accessible locations
   and in a form so that potentially affected people can understand them and at the
   World Bank InfoShop.

The Resettlement Policy Framework and the Resettlement Action Plan can be revised as
necessary during project appraisal.

        1.3 Environmental and Social Management Framework
An Environmental and Social Impact Management Framework for the National Energy
Development Project was prepared at the same time as this Resettlement Policy
Framework. The two documents complement each other. The Resettlement Policy
Framework addresses potential adverse social impacts that stem from resettlement,
whereas the Environmental and Social Management Framework addresses other possible
harmful social and environmental effects of the project.

2.      The National Energy Development Project (NEDP), Nigeria
         2.1 Project Components
The National Energy Development Project (NEDP) will support continued reform and
privatization of the electricity sector, which the Bank is already assisting through the
Transmission Development Project and the Privatization Support Credit.

NEDP has two main investment components that could possibly trigger the
environmental, social or resettlement policy. (There is only one other investment
component, which involves rural pilots for expansion of access, and pilots for
intensification of connections in peri-urban areas. These pilots are not expected to trigger
resettlement issues. The remaining two components are purely for technical assistance,
and therefore have no impact on resettlement issues). For purposes of the RPF therefore,


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the first two components, for transmission and distribution investments, are the only ones
of interest.

Sub-projects for transmission development and distribution development will involve
exclusively rehabilitation and upgrading of existing NEPA assets. To the extent that
people may have located too close to NEPA structures, there may be minor resettlement
involved in order to enforce safety guidelines. In addition, resettlement may occur as a
result of possible land acquisition for new customer service centers. However, no sub-
projects have been identified so far and every effort will be made to minimize
displacement of people.
       Transmission Development: The investments will be aimed at improving the
    quality and quantity of power supply both on the transmission grid generally, and to
    specific distribution areas where the distribution investments will be concentrated.
       Distribution Development: The investments will be concentrated in selected
    areas. These areas will receive improved infrastructure, as well as assistance to
    improve business practices (e.g., revenue systems) and customer services (e.g., rapid
    response teams, customer care centers).
As indicated above, the third component aims to develop models for expanding and
intensifying access to electricity and to renewable energy through supporting state
initiatives.

Finally, a fourth and fifth component will provide further technical assistance and
capacity-building for sector reform and privatization; feasibility studies for generation
through a gas pipeline and independent power providers; and support to project
implementation.

         2.2 Choice of Resettlement Instruments for NEDP
In the course of planning NEDP activities in particular locations, it may emerge that the
sub-projects will have a negative impact on people’s assets or incomes. For instance,
people may have constructed homes, business, or other structures too close to the power
lines, and these assets will have to be removed. However, it is impossible to know at this
stage what those impacts will be, since the sub-project areas have not been selected.
During implementation, for each sub-project, a Land Acquisition Assessment (LAA)
will be prepared to determine whether the sub-project will entail displacement and/or
land acquisition, and whether or not a Resettlement Action Plan will be needed. If and
when needed a resettlement action plan will be prepared and presented to the World Bank
for approval.


Any Resettlement Action Plan prepared for NEDP must be in line with the
objectives, principles, and policies outlined in the remainder of this Framework, and
with the World Bank policies on resettlement.




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3.       Objectives and Principles underlying Resettlement procedures

    “Resettlement” refers not just to the physical displacement of people, but also covers
     taking land that results in the
      relocation or loss of shelter,
      loss of assets or access to assets, and/or
      loss of income sources or means of livelihood (OP 4.12, paragraph 3)..

    Resettlement will be avoided if feasible, and otherwise minimized, exploring all
     viable alternatives.

    All affected people will be entitled to compensation and/or other forms of assistance.
     “Affected people” includes not only people with rights or claims to lost land and
     assets, but also squatters, tenants, artisans, wage earners, etc., whose livelihoods,
     living standards, or use of resources may have been affected. However, people who
     move to a site just in order to get compensation or assistance do not qualify (OP 4.12,
     paragraph 15-16). For this reason a cut-off date will be provided for each sub-project.

    If World Bank policy (i.e., BP 4.12 and OP 4.12) and Nigerian policy and law differ
     as to people’s entitlement to compensation and other assistance, the policy that
     provides for the higher level of compensation and assistance will take precedence.
     For instance, compensation will equal full replacement costs, without depreciation,
     even if Nigerian policy and law normally deducts depreciation.

    Every effort will be made to provide alternative land to affected people, such as
     farmers and herders, whose livelihoods depend on land, and who will lose land or
     access to land due to the sub-projects.

    Alternative land will be provided to people who have to relocate physically because
     of the sub-projects. These people must receive housing or residential plots that have
     all the advantages and productive potential of the previous site (OP 4.12, paragraph 6
     (b) and (c).

    If community infrastructure or services, such as schools, roads, bridges, water
     supplies, etc., are lost through project activities, these will be replaced in-kind.

    Affected persons and communities will be meaningfully consulted, and have the
     opportunity to participate in planning and implementing resettlement. This includes
     workshops and information campaigns to inform the public. Other means of
     information include the organization of local public forum to discuss the proposed
     mitigation measures, their content and means of their implementation, including
     timing and requirement ., and to inform them about their rights and alternatives
     available to them.




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    A Resettlement Action Plan will be prepared and approved by the Bank or an agreed-
     on Nigerian government agency before beginning any construction that will entail
     resettlement. An accurate and complete summary of comments that affected people
     and communities have made on the plan in public forum discussions will be
     submitted to the Bank or the designated agency along with the plan.

    The compensation and other assistance outlined in the Resettlement Action Plan will
     be discussed and agreed on before the sub-projects in question begin.

    The resettlement policies laid out in this document, and in BP 4.12 and OP 4.12,
     apply to all activities under NEDP, regardless of whether the funding comes from the
     Bank or the Nigerian government. They also apply to other activities resulting in
     resettlement if, in the judgment of the Bank, these activities are
      directly and significantly related to NEDP,
      necessary in order to achieve the objectives of NEDP, and
      carried out at the same time as NEDP implementation (OP 4.12, paragraph 4).

Many of the above principles are re-iterated in more detail in the remaining sections of
this Resettlement Policy Framework.

4.       Process for Resettlement Action Plan preparation and approval
The Environment, Resettlement, and Social Unit (ERSU) will prepare the Resettlement
Action Plans for transmission sub-projects that require them. The NEPA Zonal Offices,
or their successor organizations, will prepare the Land Acquisition Assessments and
Resettlement Action Plans for any distribution sub-projects, with guidance and assistance
from ERSU.1

These Resettlement Action Plans will be submitted to the Bank for approval before the
sub-projects can be accepted for Bank financing (OP 4.12, paragraph 29).


5.       Likely Populations Affected by Resettlement
The transmission investments will be kept within the current NEPA perimeter, meaning
the fenced-in area demarcating the sub-station. Thus very limited impacts on the
population are expected from transmission investments, and could only result if the
locations of existing fences are moved. Distribution feeder lines, however, are typically
within densely populated urban locations. The only intervention being made by the
project as far as these lines are concerned, is to upgrade them to carry a higher voltage of
11kV. On one hand, 11kV lines have shorter spans and higher clearances and therefore

1
  The eleven Distribution Business Units are to become Distribution Companies before or shortly
after NEDP implementation begins, according to the timetable given in Section 99 of the
Electricity Power Sector Reform Act, 2005.


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cause less accidents and therefore the requirement for resettlement is likely to be
decreased as a result of such upgrade. In addition, the project will support the
introduction of insulated overhead cables or underground cables, to introduce higher
safety measures. Hence, no resettlement issue is likely to be involved. However, in case,
following reconfiguration of the line, any dwelling/structure is found to be within unsafe
clearances (as specified in the prescribed electrical safety standards of Nigeria—see
below), then such structures will be relocated and the resettlement policy will be adopted.
Each sub-project will look at this issue in detail and advise the Bank in writing if the
policy is likely to be triggered.

6.      Eligibility Criteria
If World Bank policy (i.e., BP 4.12 and OP 4.12) differs from Nigerian law and policy as
to who is eligible for compensation, assistance, or both, the policy or law with the wider
definition of eligibility will take precedence.

The 1996 Electricity Supply Regulations of 1966 specify that power lines must clear
buildings and other structures by the following distances

Table 1: Required Distances between Structures and Power Lines

                   Line Voltage                    Distance (meters)
                   330 kV                          6.0
                   132 kV                          4.0
                   33 kV                           3.0
                   11 kV and under                 2.4

Source: Sections 60, 61, S.I. 6 of 1966 Electricity Supply
Regulations, Federal Republic of Nigeria Official Gazette, No.
17, Vol. 83, April 2, 1996. Lagos: Federal Government Press

Although these distances were established at the time of the lines’ commissioning,
encroachment may have since occurred. In addition, NEDP may have to acquire land to
expand transformer sub-stations or to construct towers, customer care centers, etc.

         6.1 Rights to Land
People who have formal legal, customary, or traditional rights to land have a right to
compensation, at full replacement value (without depreciation), for the land and other
assets that they lose due to NEDP sub-projects (OP 4.12, paragraphs 15(a), 16).

If these people are physically relocated, they also have a right to other forms of
assistance:



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   alternative land that has all the advantages of the previous site, in terms of location,
    productive potential, access to public services, customers, and suppliers, etc. (OP
    4.12, paragraph 6(b) and 6(c), footnote 13),
   moving assistance,
   support during a transition period while they re-establish their livelihood and standard
    of living, and
   other assistance such as land or plot preparation, credit to help re-establish their
    business or livelihood, etc. Such assistance is in addition to the compensation, and
    may be provided in cash, in kind, or in some combination.


        6.2 Claims to Land
People who have recognized claims to the land are also entitled to compensation at full
replacement value, even if they have no formal rights to the land in any sense of the
word. For instance, people may have occupied land in the right of way for many years,
without NEPA taking any action to evict them. This could be interpreted as implicit
permission by the government to settle there.

The Zonal Offices will discuss and agree with local government authorities and the
affected people and communities about whether and which types of claims to land to
recognize. The Resettlement Action Plan will make clear what claims will be
recognized, and how to establish whether someone has a right to make such a claim (OP
4.12, paragraph 15(b), footnote 19; OP 4.12: Annex A, paragraph 7(f)).

People who have claims to land have a right to compensation, at full replacement value
(without depreciation), for the land and other assets that they lose due to NEDP sub-
projects (OP 4.12, paragraphs 15(a), 16).

If people who have rights or claims to land are physically relocated, they are eligible for
the other forms of assistance described in the previous sub-section, namely
 alternative land that has all the advantages of the previous site, in terms of location,
    productive potential, access to public services, customers, and suppliers, etc. (OP
    4.12, paragraph 6(b) and 6(c), footnote. 13),
 moving assistance,
 support during a transition period while they re-establish their livelihood and standard
    of living, and
 other assistance such as land or plot preparation, credit to help re-establish their
    business or livelihood, etc.

The cost of alternative land can be deducted from the compensation (OP 4.12, footnotes
11, 13). The other assistance is in addition to the compensation, and may be provided in
cash, in kind, or in some combination.




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         6.3 No Rights or Claims to Land
People are not entitled to compensation if NEDP causes them to lose land to which they
have neither rights nor claims. However, if these people are forced to relocate physically
because of the sub-projects, they are entitled to other forms of resettlement assistance to
help re-establish their previous standard of living and income. This assistance could take
the form of land, cash, other assets, employment, and so forth, depending on the specific
situation (OP 4.12, paragraph 15(c), footnote 20).

People who move into an affected area just in order to get compensation and assistance,
or after a cut-off date has been established, do not have a right to either compensation or
assistance. The Resettlement Action Plan has to specify the cut-off date and how it was
established.

        6.4 Eligible Communities
Communities that lose infrastructure or community services such as roads, bridges,
schools, electricity, water, and so on will have the infrastructure and services replaced in-
kind.

7.       Legal Framework
The legal basis for land acquisition and resettlement in Nigeria is the Land Use Act of
1978, modified in 1990. According to the act, all land in Nigeria is vested in the
Governor of each state, to be held in trust for the use and common benefit of all people.
The administration of urban land is directly under the control and management of the
Governor, whereas non-urban land is under the control and management of the Local
Government Authority. The Governor has the right to grant statutory rights of occupancy
to land. Local government has the right to grant customary rights of occupancy.

The Land Act gives Government the right to revoke statutory and customary rights to
land for the overriding public interest. NEPA, as a federal agency, is also empowered by
a land use decree and by NEPA Operational Decree No. 24 of 1972 to acquire land.2

Since the Land Act gives to the state the ownership of all land, compensation by NEPA is
restricted to structures, installations, and improvements on the land, not the land itself.
However, the Act does require the state or local government to provide alternative land
for affected people who will lose farm land, and alternative residential plots for people
who will lose their houses.

NEPA has generally done this for hydro-power resettlement programs, but not for
transmission line and sub-station projects, or for distribution projects. Alternative land

2
 Currently, the authority and decrees of NEPA are in transition. Section 99 of the Electricity
Power Sector Reform Act, 2005 repealed the NEPA Act and the previous Electric Power Act.
The process of restructuring envisages that NEPA would be replaced by the Power Holding
Company of Nigeria (PHCN).


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has not been provided to people who lost land for tower base construction, or who were
relocated to clear the right of way. In some areas closer to towns and cities, additional
cash compensation has been paid, on a case by case basis, to people who lost building
plots, other land, or houses to make way for sub-stations. Alternative land has not been
provided.

Thus, some conflicts exist between World Bank resettlement policies, on the one hand,
and Nigerian law and NEPA practice, on the other. World Bank resettlement policies
take precedence. Under NEDP, NEPA and its successor organizations will have to
ensure that
 people with rights or claims to the land receive compensation for the replacement
    value, without depreciation, of land and other assets lost or damaged as a direct result
    of NEDP.
 alternative land is provided to people with rights or claims to the land, and who are
    physically displaced or lose farm land, the cost of which can be deducted from
    compensation paid.
 any alternative land has advantages at least equivalent to the previous site and allows
    the affected people to maintain/regain their income and standard of living prior to
    NEDP.
 people with rights or claims to the land, and who are physically displaced, also
    receive other assistance, such as a moving allowance, support during a transition
    period, land preparation, etc. (OP 4.12, paragraph 6).
 even certain people without rights and claims to the land, but who are physically
    displaced, receive other forms of resettlement assistance to help re-establish their
    previous standard of living and income.

A previous sub-section on Eligibility Criteria described these policies in more detail.

State or local governments will be responsible for arranging the alternative land, if
needed, and if technical solutions cannot be found, in consultation with the affected
people. The concerned transmission company or distribution company will be
responsible for the cost involved and NEDP can support the process.

8.      Methods of Valuing Assets for the Purpose of Compensation

The Property Department of NEPA and its successor organization (i.e. Transysco) will
estimate compensation values for transmission sub-projects. The Property Departments
in Distribution Business Units, and eventually Distribution Companies, will do this work
for distribution sub-projects.

The Property Departments will follow their standard estimation procedures, with the
following exceptions:




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     Compensation for full replacement value will be paid for land to which people have
      rights or claims. If alternative land is provided, the value will be deducted from the
      compensation paid (OP 4.12, footnote 13).
     Compensation for full replacement value will be paid for structures and other assets.
      The valuation for crops will consider current yield and market price for various crops,
      and the replacement cost for economic trees.

World Bank policy defines “replacement cost” as follows:3
 Depreciation is not taken into account.
 If the remaining asset is not economically viable, compensation is estimated based on
   the entire asset.
Agricultural land:
 The pre-project or pre-displacement market value (whichever is higher) of land of
   equal productive potential or use, located in the vicinity of the affected land
 plus the cost of preparing the land to levels similar to those of the affected land,
 plus the cost of any registration and transfer taxes.
Urban land:
 The pre-displacement market value of land of equal size and use, with similar or
   improved public infrastructure facilities and services, and located in the vicinity of
   the affected land,
 plus the cost of any registration and transfer taxes.
Houses and other structures:
 The market cost of the materials to build a replacement structure with an area and
   quality similar to or better than those of the affected structure,
 or to repair a partially affected structure,
 plus the cost of transporting building materials to the construction site,
 plus the cost of any labor and contractors’ fees,
 plus the cost of any registration and transfer taxes,
 and without taking into account the value of any salvage materials, or the value or
   benefits to be derived from the project.

Information about the rates and types of compensation will be included in the draft
Resettlement Plan. Affected people, their leaders, and watchdog organizations will have
an opportunity to comment during the public forum to discuss the draft resettlement
action plan. A summary of the comments will be attached to the draft plan when it is
submitted for approval. The comments will be prepared by a participating organization
or professional independent of PHCN and its successor organizations. For instance, an
advocacy/watchdog non-governmental organization could be selected.



3
    This definition is taken directly from OP 4.12, footnotes 11,12; OP 4.12: Annex A, footnote 1.


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9.       Organizational Procedures for Delivering Compensation and
         Assistance
        9.1 Organization Responsibilities
ERSU will remain part of NEPA PMU, and thus be responsible for applying the
Resettlement Policy Framework to NEDP transmission sub-projects, and preparing and
implementing Resettlement Action Plans as needed for transmission sub-projects.

The Distribution Companies will be responsible for applying the Resettlement Policy
Framework to NEDP distribution sub-projects, and preparing and implementing
Resettlement Action Plans as needed. Since ERSU has benefited from considerable
training and capacity-building under the previous Transmission Development Project, the
unit will provide support and guidance to Distribution Companies in handling these, and
other, new responsibilities. Also, ERSU, as part of the NEDP implementation unit, has
the responsibility to see that sub-projects are implemented smoothly. In this capacity,
ERSU will monitor the preparation and implementation of the Resettlement Action Plans
for distribution sub-projects.

The role of the Property Departments in regard to compensation was described in the
preceding sections. The Audit Departments in PHCN/TransysCo and Zonal
Offices/Distribution Companies will review compensation values and approve
compensation payments proposed by the Property Departments in their respective
organizations.

Local government representatives; Ward, Village, and District Heads; and Chiefs will
witness the payment of compensation to individuals and communities.

ERSU will plan and implement other assistance programs for transmission projects. The
Zonal Offices/Distribution Companies, in collaboration with the Business Units where
distribution sub-projects are located, will plan and implement other assistance programs.

The National Electricity Reform Commission will receive and investigate complaints
about compensation and other assistance.

         9.2 Organizational Capacity-building
The policies and procedures laid out in this document represent a significant departure
from past NEPA practice, at least in some zones. Therefore, some effort must be made to
familiarize the responsible parties with the Resettlement Policy Framework, and specific
procedures such as replacement cost valuation and resettlement action planning. To the
extent possible, trainers from the appropriate NEPA training institutes should participate,
so as to institutionalize some capacity to run such training.

The recommended training workshops are as follows:
    Workshop--NEDP Resettlement Policies for Transmission Investments: A
     workshop for ERSU staff, some staff from TransysCo, and one to two trainers from


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    NEPA training institutes. The selected resettlement staff are those who will
    implement resettlement policies on NEDP transmission sub-projects as needed. The
    selected PHCN institute trainers are those who would be capable and available to put
    together, in collaboration with ERSU, a similar workshop should the need arise in the
    future.
    The course familiarizes participants with World Bank resettlement policies, the
    NEDP Resettlement Policy Framework, and the NEDP Resettlement Action Plan
    template. The training methodology is participatory, and uses a case study method.
    The objectives of the courses are to (1) prepare the ERSU and Resettlement staff to
    implement the resettlement policies on NEDP transmission sub-projects as needed,
    and (2) prepare ERSU and NEPA institute trainers to organize and run a similar
    workshop should the need arise in the future.
   Training of Trainers--NEDP Resettlement Policies for Distribution Investments:
    A training of trainers workshop for ERSU staff and up to ten other staff from Zonal
    Offices/Distribution Companies and training institutes. Staff are selected for
    participation based on their ability and experience to run training courses, and their
    availability to run training workshops on this same topic. The Zonal
    Office/Distribution Company staff are preferably persons who will also be involved
    in implementing resettlement policies on NEDP distribution sub-projects as needed.4
    The course familiarizes participants with World Bank resettlement policies, the
    NEDP Resettlement Policy Framework, and the NEDP Resettlement Action Plan
    template. The training methodology is participatory, and uses a case study method.
    The objectives of the courses are to (1) familiarize participants with the resettlement
    policies and procedures regarding distribution sub-projects, (2) train them as trainers
    to run similar workshops with Zonal Office/Distribution Company staff, and (3)
    prepare training materials and programs for such workshops.
   Workshops--NEDP Resettlement Policies for Distribution Investments: In order
    to keep down the number of participants per workshop, each workshop should cover
    staff from three to four zones only. In this way, it should be possible to limit the
    number of participants to under twenty-five per workshop. The selected participants
    are those who would be involved in implementing resettlement policies on NEDP
    distribution sub-projects as needed.




4
  The Zonal Office/Distribution Company staff likely to be involved in any resettlement planning
and implementation include the following: Zonal and Business Unit Planning and Construction
Officers assigned to the NEDP sub-project, the Business Unit Manager where NEDP sub-projects
will be implemented, Zonal Property Department staff. If there is no other opportunity to
familiarize the Zonal Offices/Distribution Company executive directors and heads of technical
services with NEDP resettlement policies, these persons may be invited as well.


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10.       Implementation Process
Planning and implementation for resettlement comprises eight steps, as described in the
following sub-sections. The scale of such activities will vary tremendously depending on
whether the civil works in question entail, say, a large number of transmission towers
versus one distribution pole.

     Consultation with State and Local Government: Explain NEDP, the possible sub-
      projects planned for the state and local area, and the Resettlement Policy Framework.

     Reconnaissance Survey: During the design of a particular sub-project, a preliminary
      survey will be carried out to identify people affected. This will provide an early
      estimate of the scale of the impact that the sub-project will have on land, assets,
      people, and communities. . Such a survey will be complemented by a Land
      Acquisition Assessment to determine the status of the concerned site(s).

     Detailed Inventory: This is carried out according to the standard Property
      Department procedures, with certain exceptions as detailed in the section above on
      Methods of Valuing Assets.

     Develop Resettlement Action Plan: The attached template provides instructions for
      how to prepare a Resettlement Action Plan.

     Hold Public Forum to Discuss the Resettlement Action Plan: The draft
      Resettlement Action Plan will be made available to the affected people and
      communities, relevant advocacy/watchdog non-governmental organizations (NGOs),
      and independent professionals in the sector.5 All these groups, along with local
      leaders, will be invited to a public forum to discuss the plan’s provisions. NEDP will
      engage an independent professional (possibly from a watchdog NGO) to prepare a
      summary of the public forum discussions. This summary becomes an annex to the
      Resettlement Action Plan.

     Submit Resettlement Action Plan for Approval: Resettlement staff may revise the
      draft Resettlement Action Plan based on the public forum discussions. The summary
      of those discussions (cf., preceding sub-section) becomes part of the draft/revised
      draft of the plan. Bank policy requires that Resettlement Action Plans are submitted
      to the Bank or a designated government agency for approval before the sub-project
      can be accepted for Bank financing. The section above on Resettlement Action Plan
      preparation and approval describes this process briefly.



5
  A watchdog organization understands and defends the rights and interests of a particular group,
in this case the people and communities affected by NEDP sub-projects. The Poverty Alleviation
Development Centre (PADEC) is an example of an advocacy NGO that could play such a role.
PADEC works in several states to carry out mobilization and sensitization activities among poor
people.


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     Disclose Approved Resettlement Action Plan to Affected People: The complete
      approved Resettlement Action Plan will be made available in easily accessible
      locations in or near the affected areas, and will be disclosed at the InfoShop of the
      World Bank in Washington DC. . In addition, ERSU and Zonal Office/Distribution
      Company staff will make sure that the affected public is aware of the plan’s contents
      through public meetings, putting up notices, and distributing information booklets.
      The staff may work together with local NGOs to ensure that this information actually
      reaches the target audience.

     Sign Compensation Contract and Pay Compensation to Affected People:
      TransysCo and Zonal Office/Distribution Company staff will pay compensation for
      their respective sub-projects directly to each affected household in the presence of
      local government representatives, overseen by NEPA PMU. This will take place well
      before civil works begin. If affected people are going to have to move their homes,
      businesses, etc to another location, cash compensation must be paid, and in-kind
      compensation provided, at least four to six months before civil works begin.

11.       Grievance Redress Procedures
Affected people and communities will have multiple opportunities to participate in
planning compensation and resettlement, establishing rates, and so forth. If individuals
nonetheless have grievances, they can appeal to the
 Business Unit Manager,
 Zonal/DisCo Chief Operating Officer, and
 National Electricity Regulatory Commission.

The National Electricity Reform Commission is the regulator, and thus a third-party
recourse for settlement of disputes. Ultimately, aggrieved persons can take the matter to
court.

12.       Budget and Funding Arrangements
A detailed inventory, carried out as part of preparing the Resettlement Action Plan, will
provide the basis for estimating the compensation and assistance costs for each sub-
project. These costs, including a ten per cent contingency, will be included in the total
sub-project cost. The funds will be disbursed in the same manner as the other sub-project
funds. An allocation of up to USD1 million has been estimated and included in NEDP
for this purpose.

13.       Participation of Affected Persons in Resettlement Process
The main avenue for participation will be public forums, a mandatory part of the process
for preparing the Resettlement Action Plans. ERSU and the Zonal Offices/DisCos,
possibly in collaboration with suitable and experienced NGOs, will subsequently inform
the public about the approved Resettlement Action Plans through public meetings,
putting up notices, and distributing information booklets.



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People can also participate through the grievance redress procedures, outlined in the sub-
section above.

14.     Monitoring
         14.1 Internal Monitoring
ERSU and Zonal Office/Distribution Company staff will report quarterly on the status of
activities related to the Resettlement Action Plan for each sub-project. The reports will
be submitted to the executives of NEPA/TransysCo and the Zonal Offices/Distribution
Companies respectively. The latter will also forward copies to the PMU along with
comments or remarks about actions taken to remedy problems. ERSU will compile the
reports, attach a summary, and forward the compiled document to the World Bank Task
Team Leader.

The reports will contain a short description of progress and disbursement, and any issues,
problems, lessons learned, etc. The reports will also contain a series of tables measuring
progress against the implementation schedule for completing the activities leading up to
the approval of a Resettlement Action Plan, and subsequently against the implementation
schedule laid down in the plan itself.

The reports relating to resettlement may form part of a general report on the overall
progress of the sub-project. ERSU will nonetheless prepare a quarterly summary
focusing on implementation progress related to resettlement.

ERSU, as part of the unit charged with implementing NEDP, will follow up with the
Zonal Offices/Distribution Companies regarding problems with resettlement activities.
ERSU will also make a yearly assessment of resettlement issues and activities related to
the distribution investments, based on a review of documentation, and site visits to each
sub-project. Copies of this report will go to each Distribution Company Chief Operating
Officer and to the World Bank Task Team Leader.

        14.2 External Monitoring

Eight to twelve months after NEDP begins, the World Bank will engage an independent
consultant to assess the resettlement, compensation and assessment process, including
this framework. The consultancy will give particular attention to how safety issues for
distribution lines have been handled. This consultancy may be combined with one
examining social impact mitigation and monitoring under the Environmental and Social
Impact Management Framework.




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Appendix 1: NEDP Resettlement Action Plan template

Preface
The World Bank is planning to finance certain transmission and distribution investments
as part of the National Energy Development Project (NEDP). These investments may
have a negative impact on people’s property, other assets, incomes, etc., principally
because the right of way may have to be cleared for high and medium voltage
transmission and distribution lines to pass safely. This is so, even though NEDP will
only upgrade and improve existing power lines, not construct new ones. The project will
also upgrade transformer sub-stations, and conceivably people may have to move because
of this.

In order to safeguard people’s interests, the World Bank requires that policies and
procedures be worked out in advance as to how people will be compensated for lost
assets and income. Initially, the NEDP planners can only do this in a very general way,
because the specific lines and sub-stations to be upgraded and improved had not yet been
selected. The general objectives, principles, policies, and procedures in regard to
resettlement under NEDP are presented in the NEDP Resettlement Policy Framework.

World Bank policy requires that more detailed documents, Resettlement Action Plans, be
prepared once specific sub-projects (in this case, power lines and sub-stations) have been
identified, and if these sub-project will damage or destroy people’s property, other assets,
income, standard of living, etc. If a sub-project will entail this sort of negative impact,
the sub-project cannot receive Bank financing until the Bank or a Bank-designated
government agency has approved a Resettlement Action Plan.

The same World Bank policy sets out very specific requirements as to what such
Resettlement Action Plans must contain.6 This present document, the NEDP
Resettlement Action Plan template, provides guidelines to ensure that the Resettlement
Action Plans, prepared as necessary for NEDP sub-projects, contain all the requisite
information.

How to Use This Template
The American Heritage Dictionary defines “template” as
          A pattern or gauge, such as a thin metal plate with a cut pattern, used as a
          guide in making something accurately, as in woodworking
Similarly, this document will guide users in preparing an acceptable NEDP Resettlement
Action Plan for specific sub-projects.

6
  The World Bank Operational Manual containing this policy is available online at
www.worldbank.org. The relevant policy on Resettlement Action Plans is OP 4.12: Involuntary
Resettlement—Annex A: Involuntary Resettlement Instruments. Paragraph 25 specifies the topics
that the type of Resettlement Action Plan required for NEDP must contain. Additional
information on what each topic should cover is contained in paragraphs 6 (a), 11, 12, 19, and 20.


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Below are seven section headings, highlighted in bold print. These seven section
headings must appear in the Resettlement Action Plan, exactly as written and numbered
here.

Under the section headings are some guidelines as to what information should be
contained in each section. It is the responsibility of the persons preparing the NEDP
Resettlement Action Plan—and ultimately the responsibility of the Zonal
Office/Distribution and Marketing Company executive officer—to ensure that each
section contains all the required information. The sections may contain additional
information, at the discretion of those preparing the plan, but they must at minimum
contain the information described below.

1.      INTRODUCTION
          Names of the area where the sub-project is located; names of the service
           center, business unit, and zone (for distributions sub-projects); names of the
           local government authority and state
          Short description of the physical work for the sub-project, e.g., transformers
           and wires to be replaced, any customer service centers and rapid response
           vehicles to be supplied
          Map/sketch of area
          The principal reasons for resettlement and loss of assets (e.g., clearing right of
           way, enlarging sub-station)

2.      BASELINE CENSUS AND SOCIO-ECONOMIC SURVEY
        DESCRIPTION OF AFFECTED SITES
          A list of all the occupants of the affected area. For instance, this might be a
           list of all the people who live, work, or farm along the right of way for a
           feeder line. For residents, only the head of household and number of
           members need be listed.
          For each occupant, information on
          Type of occupant (residential household, business, hotel, etc.)
          Source of income or livelihood (employment, vendor, etc.)
          Income level (high, middle, low, below poverty)
          Magnitude of expected loss of assets (taken from detailed inventory carried
           out by Property Department),
          Whether he or she will be physically displaced
          Whether part of a vulnerable group such as those below poverty level, the
           elderly, women and children, indigenous people, and ethnic minorities.
          Description of provision to update above information, so latest information on
           occupants and their income is available




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        List and description of any NGOs or community organizations in area that
         could play a role in representing and articulating occupants’ interests, as well
         as communicating resettlement policies and plans to affected people

3.   COMPENSATION STANDARDS AND RATES
        The criteria for eligibility for compensation, i.e.,
              a definition of legal, customary, and traditional rights;
          a definition of which claims to compensation will be recognized, even in
              the absence of rights;
          a definition of who is entitled to other kinds of assistance, even though
              they have neither rights nor claims to land in the affected area
          the cut-off date after which people moving into the area will not be
              eligible for assistance; a description of how this date was established
              (usually the date of the detailed inventory), and subsequently publicized
        A table showing the compensation rates that will be paid for different types of
         assets; an explanation of how these rates were established (e.g., current market
         values of comparable land, current market prices and yields for various crops)
        A description of infrastructure and services that will be provided to
         compensate the community for the loss of these assets

4.   ADDITIONAL ASSISTANCE FOR VULNERABLE GROUPS
        Describe any additional assistance that will be provided to protect or improve
         the livelihoods or standards of living of vulnerable groups such as those below
         poverty level, the elderly, women and children, indigenous people, and ethnic
         minorities.
        If none, simply write “None.”

5.   DESCRIPTION OF RESETTLEMENT SITES AND
     PROGRAMS
        A description of the alternative land that will be provided to physically
         relocated people, so as to make clear that the land has the same advantages as
         the previous sites.
        A description of assistance that will be provided for affected people with
         rights and claims who must be physically relocated, e.g.,
          Moving assistance,
          Support during a transition period while they re-establish their livelihood
              and standard of living, and other assistance such as land or plot
              preparation,
          Credit to help re-establish their business or livelihood, etc.
        A description of assistance that will be provided to eligible people without
         rights or claims to land in the affect area, but who nonetheless must be
         relocated.


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6.        IMPLEMENTATION SCHEDULE
             An implementation schedule covering all resettlement, compensation, and
              assistance activities from preparation through target dates for the achievement
              of expected benefits and assistance termination. The schedule should be
              presented in a table, should show how the resettlement activities are linked to
              the implementation of the overall project.

7.        COST ESTIMATES
             Tables showing itemized cost estimates for all resettlement activities,
              including allowances for contingencies; timetables for expenditures sources of
              funds, and arrangements for the timely flow of funds.




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