SRI: Additional Financing for National Highway Sector Project

Resettlement Plan May 2011 Document Stage: Draft

SRI: Additional Financing for National Highway Sector Project Kirulapana–Godagama Section of Colombo–Rathnapura–Wellawaya–Batticaloa Highway (A004)

Prepared by Road Development Authority for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 11 May 2011)

Currency unit – Sri Lanka rupee (Rs) Rs1.00 = $0.009113278

$1.00 = Rs109.730000

ABBREVIATIONS

ADB – Asian Development Bank CEA – Central Environmental Authority CSC – Chief Engineer’s Office CSC – Construction Supervision Consultant CV – Chief Valuer DSD – Divisional Secretariat Division DS – Divisional Secretary ESD – Environment and Social Division GN – Grama Niladhari GND – Grama Niladhari Division GOSL – Government of Sri Lanka GRC – Grievance Redress Committee IOL – inventory of losses LAA – Land Acquisition Act LARC – Land Acquisition and Resettlement Committee LARD – Land Acquisition and Resettlement Division LAO – Land Acquisition Officer LARS – land acquisition and resettlement survey MOLLD – Ministry of Land and Land Development NEA – National Environmental Act NGO – nongovernmental organization NIRP – National Involuntary Resettlement Policy PD – project director PMU – project management unit RP – resettlement plan RDA – Road Development Authority ROW – right-of-way SD – Survey Department SES – socioeconomic survey SEW – Southern Expressway STDP – Southern Transport Development Project TOR – terms of reference

WEIGHTS AND MEASURES

Ha – hectare km – kilometer sq. ft. – square feet sq. m – square meter

NOTE

In this report, "$" refers to US dollars. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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CONTENTS

EXECUTIVE SUMMARY ......................................................................................... iii

CHAPTER 1 - PROJECT DESCRIPTION ................................................................ 1

1. Project Description ................................................................................. 1 2. Road Project Profile................................................................................ 1 3. SocioeconomicBenefits of the Project .................................................... 3

CHAPTER 2 - LEGISLATIVE AND POLICY FRAMEWORK .................................... 4

1. Legislative Framework ............................................................................ 4 2. Policy Framework ................................................................................... 8

CHAPTER 3 – SCOPE FOR LAND ACQUISITION AND SOCIAL BACKGROUND 14

1. Scope of Land Acquisition .....................................................................14 2. Social Background of the DP Households .............................................15 3. Indigenous People .................................................................................16

CHAPTER 4 – INFORMATION DISSEMINATION, CONSULTATION AND PARTICIPATORY PROCESS.................................................................................17

1. Information Dissemination and Consultation ..........................................17 2. Information Disclosure ...........................................................................18

CHAPTER 5 – ENTITLEMENTS .............................................................................20

CHAPTER 6 - GRIEVANCE REDRESS MECHANISM ...........................................31

CHAPTER 7 - INCOME RESTORATION AND REHABILITATION .........................36

CHAPTER 8 - RESETTLEMENT BUDGET ............................................................37

CHAPTER 9 – IMPLEMENTATION SCHEDULE ....................................................39

CHAPTER 10 - INSTITUTIONAL FRAME WORK FOR RESETTLEMENT .............41

1. Project Management Unit ......................................................................41 2. Environmental and Social Division (ESD) and Land Division .................42 3. Divisional Secretariat .............................................................................42 4. Field Office of the PMU .........................................................................42 5. Construction Supervision Consultants (CSC) ........................................43 6. Institutional Arrangement to Attend to Gender Concerns .......................44

CHAPTER 11 - MONITORING AND REPORTING .................................................47

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LIST OF TABLES

Table 1 Legislative GAP Analysis ............................................................................................... 11

Table 1 Distribution of DP Households by DS Divisions ............................................................. 14

Table2 Affected DP Households by DS Divisions and by categories ......................................... 15

Table 2Completed and Planned Public Consultation and Disclosure Activities ......................... 18

Table 3 Estimated Cost of Land Acquisition and Resettlement of Road Project A004 .............. 37

Table 4 Matrix of Roles and Responsibilities of Government Agencies and Other Organizations involved in Resettlement Planning and Implementation ................................................ 45

Table 5 Monitoring and Evaluation Indicators ............................................................................. 49

LIST OF FIGURES Figure 1 Location MAP of A004 (Kirulapana - Godagama) ............................................................ i

ANNEXES Annex 1: National Involuntary Resettlement Policy .................................................................... 51 Annex 2: Census Survey Questionnaire ..................................................................................... 57 Annex 3: Sinhala Version of Entitlement Matrix .......................................................................... 65

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EXECUTIVE SUMMARY

1. Introduction 1. The resettlement plan (RP) is based on the data collected by census and socioeconomic survey (SES) conducted in the project area after demarcation of the centre line of the ROW after the preliminary design of the planed improvement to the road. The information contained in the RP is tentative until completion of detail engineering designs and the preliminary plan. After which Road Development Authority (RDA) will finalize the RP by completing the census and the inventories of loss of assets. This will be sent to Asian Development Bank (ADB) for review and disclosure to ADB website.

2. The RP has been done for A004 Kirulapana–Godagama highway in 2007 considering 13 km of length from Kirulapona to Kottawa. The present requirement is to update the RP prepared in 2007 to suit the current needs, but considering a reduced length of 5.33 km in two separate sections from 00+130 (8.1 km point of CRWB)– 01+260 (Kirullapana to Nugegoda end) and secondly from 15+500 – 19+700 (Homagama town end to Godagama). These two sections have been undertaken by the National Highway Sector Project (NHSP) Southern Expressway Links of the RDA to be upgraded as four lane and two lane highways from Homagama to Godagama funded by the ADB. Along the road length to be improved, there are no private legal title holders among the would be displaced persons, however there are fifteen families who are encroaching on the land belonging to the state (RDA).The total population among the displaced households amounts to 74.

2. Methodology 3. Consultant in this new exercise carried out a quick count to assess the number and nature of structures needs to be removed for this upgrading of the road sections. The number of structures to be affected is eight, of which five are commercial establishments, three residential, and seven lots of land only. .As the time frame is limited the assistance of two field enumerators who are trained and having experience in similar work were used to count the potential structures to be affected after identifying the proposed right-of-way (ROW) of 25.2m in the first section and 17m in the second section from Homagama to Godagama. In this exercise only potential structures to be affected have been identified. However the RP will be finalized after completing the census and the inventories of losses of assets after completion of the detailed engineering designs and submitted to ADB for review and disclosure to ADB website.

3. Legislative and Policy Framework 4. There are three legislative enactments that are directly related to the resettlement process. These acts are (i) Land Acquisition Act No 9 of 1950 (ii) Road

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Development Authority Act No 73 of 1981 and (iii) National Environment Act No 47 of 1980 and amended in 1988. The LAA sets out the procedure for acquiring land and payment of compensation for acquired lands for public purposes.

4. Scope of Land Acquisition and Resettlement 5. The rapid appraisals carried out in these two sections have revealed that there are 15 displaced households (DHs) comprising 74 persons with partial effects within the second section of the road under Homagama DS Division. It is also observed that there are no fully affected households that need to be relocated. Fifteen displaced persons (DPs) who have no title to the land they occupy at present will be compensated as per the approved entitle matrix. The extent of land that will be required is 0.0885 hectares or 885.5 m2

5. Socioeconomic Background 6. The first section of the road project with a mixed residential / commercial land use pattern is having several low income nature families, but they is not affected. From 200 yards from the commencement of the road to the end, there are number of high value houses and commercial establishments which are not affected.

7. The second section which begins after passing the Homagama town is an area dominated by the Army buildings. Up to Godagama Junction the congestion is due to activities of the Army and the visitors who come to visit Army establishments situated at Panagoda. It is a mixed residential and commercial area.

6. Information Dissemination, Consultation and Participation and Disclosure

8. In RP preparation, the LARS, socioeconomic survey, key informant interviews and informal meetings with DPs and various stakeholders have been carried out. This process commenced with initial discussions with concerned RDA Staff and Consultants. This was followed by meetings with two Divisional Secretaries (DSs) of the area, and issuing of background and relevant details to the DSs and to identify 20 affected Grama Niladhari divisions.

9. Information dissemination, consultation and participatory approach have been followed from the inception of this study. The consultants in the original RP preparation in 2007 the LARS, socioeconomic survey, key informant interviews and informal meetings with DPs and various stakeholders have been carried out. The consultant in this updating process in December 2010 also had informal discussions with road users and same DPs with the limited time they spent on the field. Altogether four consultation meetings with the participation of the various stake holders were held between June 2007 to May 2010 and one to one consultation between resettlement staff and the displaced persons is being continued.

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7. Grievance Redress Mechanism 10. A grievance redress mechanism will be established by RDA which will allow DPs to appeal any disagreeable decisions or practices arising from compensation for land and other assets or to settle any general road project-related disputes including construction related issues/impacts. A Grievance Redress Committee will be established to address any grievances presented by DPs. The DPs will be made fully aware of their rights and the procedures for making a grievance - whether verbally or in writing - during the consultation process and in community meetings.

8. Entitlements 11. In order to comply with the NIRP and Safeguard Policy Statement, 2009 ,in addition to the statutory compensation payable under the LAA, a special compensation package has been approved by the Cabinet of Ministers to address all resettlement issues faced by the displaced persons including payment of replacement cost for the loss of properties, income and livelihood restoration. The Entitlement Matrix is a part of the resettlement implementation plan and has been presented under entitlements in funds will be provided by the GOSL in a timely manner to complete the payment of compensation as planned.

9. Relocation of Housing and Settlement 12. Land and structure owners will be compensated at replacement rates after an independent valuation. DPs losing business and livelihood income will be awarded cash compensation for lost income and will be assisted in finding suitable location to re-establish their businesses.

10. Resettlement Budget 13. Although provision has not made in the aide memoire for cost of resettlement for A004, since 15 non-titled DPs are involved, a provisional for contingencies is approximately Rs. 9.9 million equivalents to a US$ 0.086 million. Statutory, compensation, replacement cost and cost of IRP is included in the budget.

11. Implementation Schedule 14. Implementation is based on the time frame indicated in the implementation schedule. As there are only 15 DPs without title, the procedure adopted to acquire land will not arise as all land occupied by the DPs belong to the state.

12. Institutional Framework for Resettlement 15. RDA, Divisional Secretariat, Valuation Department, Construction Supervision Consultant (CSC) will primarily be responsible for resettlement implementation

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process. Other organizations will be involved in implementing the income restoration and livelihood rehabilitation measures and may involve the Department of Agriculture, Irrigation Department, Farmer‟s Organizations, Agrarian Development Councils, Coconut Development Board, etc. All these institutional responsibilities have been identified.

13. Monitoring and Evaluation 16. Internal monitoring will be conducted by the PMU, ESD, and CSC and the external monitoring by the EA, where necessary EA will hire a NGO, individual or group of experts for external monitoring. The EA will prepare monitoring reports. The external experts hired by the EA will advise on safeguard compliance issues and if any significant issues are identified corrective action plan will be prepared and action will be taken to address such issues.

17. The EA will submit the first Monitoring and Evaluation Report by 31st December 2011 and thereafter semiannually until end of December 2012.

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CHAPTER 1 - PROJECT DESCRIPTION

1. Project Description 1. Road A004 Kirulapana – Godagama of the Colombo–Ratnapura–Wellawaya–Batticaloa (CRWB) Highway is proposed to upgrade in two sections under the additional financing for National Highway Sector Project (NHSP).

2. The two road sections are (i) 00+130 (8.1 km point of CRWB)–01+260 (Kirulapana–Nugegoda end) making 1.13 km length and (ii) 15+500–19+700 (Homagama town end - Godagama) adding another 4.20 km making the total length of 5.33km to be developed under this project (location map is shown as Figure 1).

3. It is a timely decision taken to upgrade the sections, along this Highway which needs widening and making the road to international standards with pedestrian footpaths, cycle lanes and other requirements, in the light of increasing traffic which at present traffic levels taper from 40,000 vehicles/day to 15,000 vehicle / day at Godagama. The traffic forecasting data indicates that by 2025 traffic is projected to grow to 63,000 vehicles/day tapering to 26,000 at Godagama.

4. In the previous study in 2007 the length covered was 13km from Kirulapana to Kottawa and full impacts have been identified resulting Land Acquisition. But according to the new development plan no acquisition is involved except the displacement of 15 nontitled families. but they could be resettled on the same premises as adequate land is available for this purpose.

2. Road Project Profile 5. The project influence area falls in five DS Divisions (Kotte, Dehiwela, Maharagama, Homagama and Thimbirigasyaya) and included 25 Grama Niladhari (GN) Divisions and 75 villages. The first section of the proposed upgrading which has developed four lanes already needs (00+130 – 01+260) very little space to reach the required width of 25.2 meters but the second spell from 15+500 – 19+700 needs same widening at points such as 15+900 just in front of Army Bungalows where the existing ROW is approximately 7.5 meters but land belonging to the state is available for widening. The improvement to the above sections of the road is extremely important in view of linking the first interchange of the Southern Expressway and OCH at Kottawa.

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Figure 1 Location MAP of A004 (Kirulapana - Godagama)

Source: National Highways Sector Project – January 2011

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6. Maharagama and Nugegoda and second section which provides access to Southern Expressway and OCH for vast traffic movement if not developed before the completion of the Southern Expressway will generate a chaotic situation on this highway and around areas. Therefore upgrading both these two sections will have productive impact in views of the large number of commercial and business ventures coming up in a large scale and with already established concentrated Economic Zone at Meepe just about one kilometre from Godagama Junction.

7. This resettlement plan (RP) covers the area of Kirulapana–Kottawa and the total length is 5.33 km.

Methodology

8. Consultants with the help of two field investigators assessed the number of structures need to be removed for this upgrading of the road. It is observed that minimum land space from both sides of the first section can be achieved without much damage to residential or commercial units.

9. In addition at selected points several DPs and knowledgeable persons were interviewed as informal discussions to understand the views of the public. This exercise will only indicate the types and approximate numbers of the properties and thinking of the people on the proposed development which will be affected as a result of upgrading this road project. Also in order to obtain the land values the knowledgeable persons such as Notary Public, lawyers and long standing residents were interviewed wherever possible.

3. Socioeconomic Benefits of the Project 10. Volume of traffic in Sri Lanka is estimated to grow at an incremental rate of 4.6% per year. The existing road network has not designed and developed to cater to the present volume of traffic, creating huge congestions on roads daily, which lead to numerous socioeconomic losses to the country. Notable among them are the high rate of accidents and mortalities.

11. The concept behind the NHSP is to mitigate the above adverse effects on one hand and increase mobility of the population, goods and services to accelerate the economic growth. One of the important objectives in developing this road is to mitigate the impact of increasing traffic volume as a result of opening of the Southern Expressway.

12. Accessibility has become the main factor for urban and commercial development. The NHSP accordingly will facilitate the smooth traffic flow and contribute to the economic development of the areas in general. This road project with the opening up of the Southern Expressway and OCH will enhance the anticipated socioeconomic development of the areas around in particular. Industrial Zone at Avissawella, Dedicated Economic Zone at Meepe and other industrial and commercial ventures will be benefited by this development in addition to the general commuters.

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CHAPTER 2 - LEGISLATIVE AND POLICY FRAMEWORK

13. In this chapter, legislative and regulatory framework for land acquisition and resettlement and policies pertaining to resettlement are discussed.

1. Legislative Framework

1.1. The Land Acquisition Act of 1950 (LAA) and Subsequent Amendments and Regulations 14. The Land Acquisition Act (LAA) of 1950 is the most important legal provision which spells out the Land acquisition process in Sri Lanka. It has several amendments and the latest being the version of 1986 and the Regulations, 2008 gazetted as No. 1585/ 7 on Tuesday, 20 of January 2009.

15. The procedures for land acquisition and payments of compensation for acquired lands by the government for public purposes are laid down in the LAA. It provided the payment of compensation at market rates for lands, structures and crops. In chapter 460 of the LAA the procedure is explained in the following manner.

a) Preparation of acquisition proposal by the requesting agency and

submission to the Ministry of Land and Land Development (MLD) through the Secretary of Ministry of Highways.

b) Approval of the proposal by MLD, posting of notices by the relevant divisional secretaries and preparation of advanced tracing by the survey superintendent on requisition issued by the relevant divisional secretaries (section 2, 248 and 249).

c) If sec 38 (a) is not invoked divisional secretary to call objections under sec 4 of the LAA. Even after inquiring of the objection called under section 4 if the relevant land is required to be acquired the requirement will be conveyed by Ministry of Highways to the Ministry of Land and Land Development.

d) Minister of Land then issue and order under Sec 5 confirming the acquisition of the relevant land which will be followed up through a gazette notification in all three languages in the same order Ministry of Land will direct the divisional secretary to take action to prepare the PP.

e) Based on the Ministers order under Sec 5, DS issue a requisition to the Superintendent of Surveys of the district to prepare and submit the plan.

f) On receipt of PP the DS will published in Government gazette notification in all three national languages (Sinhala, Tamil and English) that he/she intend to conduct inquiries under section 9 of LAA and request people to submit there clams for ownership of land before the date mention by him in the gazette notification. In addition to the gazette notification a paper notice will be published by the DS in all three languages for information of the stake holders.

g) Then inquiries will be conducted to determine the ownership and DS will issue a order declaring ownership under Sec 10 (i) of LAA.

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h) Acquiring officer either makes the decision on the claims or refers the claims to the district courts or primary courts if he is unable to determine the ownership.

i) Acquiring officer (Divisional Secretary of the area) holds an inquiry into the market value of the land, the claims for compensation and the legality of claimants (advised by valuation officers) and award of compensation under section 17 of LAA.

j) Then the possession will be taken over under Section 38 or in an urgent situation in made section 38 (a) even though the LAA permit to takeover possession before paying compensation any land acquired by the state at present will only be taken over by paying compensation in full. This is to comply with SPS, 2009 of ADB and NIRP. After taking over the possession DS will take action to vest the properties acquired under the name of relevant beneficiaries under section 44 (i) of LAA and register the title with the registrar of the land of relevant district.

k) Following the decision (either by the acquiring officer or the courts) the acquiring officer makes an award after determining the persons who are entitled to compensation, the total amount of compensation deemed to be allowed for the acquisition and the apportionment of the compensation among the persons with interest and

l) In the event of dispute over the determination it may be appealed to either the compensation review Board or Court of appeal within 21 days of the receipt of the notification of the award. If there are no appeals, the compensation will be paid.

1.2. LARC Process 16. Prior to the commencement of the land acquisition for the STDP, DPs were paid only the depreciated values under the LAA for structures and a price determined on the basis of willing buyer and a willing seller for the lands and the valuation is done by the Dept of valuation. Any aggrieved party on the valuation determined by the Valuation Dept. is expected to appeal to the Land Acquisition Review Board within 21 days of receipt of the Sec 17 order from the DS. By experience it was found the process adopted by the Land Acquisition Review Board is time consuming and variation of the Valuation Dept determination was very marginal. As large extent of land and over 1500 buildings had to be completely affected Govt. decided to introduce the new scheme to compensate the affected people in 2001, outside the Act by creating a body called LARC (Land Acquisition and Resettlement Committee) composed of the following members to determine the replacement cost (not the depreciated value) of the buildings and the market value of the land of the displaced people.

Composition of the Committee Relevant DS (Chairman) Representative of the Valuation Department Representative of the Survey Department

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Representative of the RDA DP

17. The notable feature of this committee is that the displaced person himself is a vote carrying member of the board.

Super LARC (Ministerial Compensation Appeal Board)

18. Displaced person who is not satisfied with the quantum of compensation decided by the LARC will have option of appealing to the Super LARC committee which is established by the decision of the cabinet of ministers.

Composition of the Super LARC Secretary Ministry of Highways or a person delegated by him. Chief Valuer or his representative Secretary Land or his representative Survey General or his representative Director General of RDA or his representative.

19. The displaced person will also be called for the inquiry and the decision of the super LARC is final.

1.3. Land Development Ordinance (1935) 20. By virtue of this ordinance and its subsequent amendments, households that are occupying crown land may request permission from the Divisional Secretary to be regularized on the Land in question. The Acquiring officer (Divisional Secretary) makes an investigation and may recommend giving a one–year permit initially, if the land is not reserved land or not required for any other government purpose. Subsequently, the person may be given a long lease which constitutes a legal title without right to disposal. The term for such titles is „Swarna Boomi‟ or „Jaya Boomi‟.

21. There are two categories of encroachments into crown land. (1) Middle income category, the households that have other agricultural land and (2) Lower income category, the landless households will be given special consideration for allocation of crown land that is not reserved land.

1.4. Road Development Authority Act No. 73 of 1981 22. The Road Development Authority Act (1981) provides for the establishment of the RDA and specifies the powers, functions, duties and responsibilities of the RDA. Part II of the Act deals with declaring areas for 'road development', which under the meaning of the Act includes the construction of new roads or the maintenance or improvement of existing

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roads (Improvements are deemed to include any widening, levelling, provision of footpaths, treatment for mitigation of dust or any other works beyond ordinary repairs).

23. The functions and duties of the RDA include, inter alia, carrying out integrated road planning and development, submitting such plans for government approval, and following approval, implementing the road development plans, works and activities.

24. Under Section 8 of the Act, the Minister, after taking into consideration the requirements of local and national planning and what is expedient for the regulation and control of road development, may declare a 'road development area' following an order or notice (which sets out the requirement and physical boundaries) published in the gazette.

25. Section 22 deals with land acquisition for road development as a "public purpose" and provides for the acquisition by, and transfer to, the RDA of immovable or moveable property within any declared road development area, for which the RDA will pay any sum payable under the LAA [Section 22 (2)]. Therefore, after the Section 2 notice have been published, if land or other property is to be acquired, the procedures to do so are as set out in the LAA.

1.5. State Land Ordinance No 8 of 1947 26. This ordinance is known as the State Land Ordinance No 8 of 1947. Section b of the ordinance explains the land grants which can be made and the rents to be obtained for the grants. It is mentioned in section 22 the period be up to 50 years only and the prescribed form given in the ordinance be filled and signed by the officer authenticated to sign for the grant. A person seeking a crown land has to appeal to the Government Agent of the area. Such person has to pay the rent decided by the Land Commissioner or the Government Agent of the area. Provisions also have provided to officers such as General Manager Railways and chairman of the Colombo port to rent out the lands under their purview, under special circumstances.

1.6. Prescriptive Ordinance No 22 (1871) 27. Under sections 3 and 13 of this ordinance household who have encroached into private land and have been occupying the land for at least 10 years may apply through the courts for prescriptive rights to the land.

1.7. National Environmental Act No 47 of 1980 (NEA) 28. These are some provisions in the NEA Act No.47 of 1980, with the amended Act No 56 of 1988 which refers to Involuntary Resettlement. The Hon. Minister in charge of the subject of environment has prescribed projects and undertakings which approval shall be necessary under the provisions of the NEA.

29. The Minister by gazette notification No 858/14 of 23rd February 1995 has determined the types of projects and under takings which need the approval under the terms of the NEA. The schedule includes item 12 which refers to “involuntary resettlement exceeding 100 families, other than resettlement resulting from emergency situations”.

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2. Policy Framework 30. Land Acquisition Act provides compensation only for land, structures, and crops and provisions are not available to address key resettlement issues to mitigate or avoid impacts on people resulting from land acquisition. In addition nontitled people and other dependents on land cannot be assisted under the LAA.

31. To address the current gaps in the LAA in addressing the key resettlement issues such as exploring alternative project options that avoid or minimize impacts on people the government of Sri Lanka (through the cabinet of Ministers) adopted the National Policy on Involuntary Resettlement (NIRP) on the 24th May 2001. The NIRP also highlighted the need for consultation of DPs and their participation in the resettlement process actively. The CEA was tasked to review and approve Resettlement Plans (RPs) prepared by project executing agencies. The plans also required to be publicly available.

32. In addition to NIRP, ADB‟s Safeguard Policy Statement, 2009 (SPS) have similar requirements and guidelines.

2.1. NIRP

Background

33. Various public and private sector development projects are engaged in acquisition of lands for their development and the families replaced are affected with unfamiliar locations and various other hardships. These developments take place without satisfactory consideration to resettlement. Accordingly, people have shown resistance to this process and where displacement is involved, the projects are getting delayed.

34. Among the significant consequences of poor resettlement process has resulted impoverishment of displaced families due to landlessness, homelessness, joblessness, relatively higher mortality and morbidity, food insecurity, lack of access to common property and public services and disruption to existing Social Organizations. Original LAA and subsequent amendments and Regulations to it do not require the project executing agencies to address key resettlement issues such as (i) exploring alternative project options which avoid or minimize impacts on people; (ii) compensate those who do not have title to land; (iii) consulting displaced persons and host community on resettlement options, (iv) providing for successful social and economic integration of the displaced persons and their hosts; and; and (v) full social and economic rehabilitation of the displaced persons.

35. In order to address the above mentioned issues the steering committee appointed by the government reviewed the existing laws and policies and approved the National Involuntary Resettlement Policy on 5 March 2001 and the government of Sri Lanka adopted it (through its cabinet of Ministers) as a National Policy on 24th May 2001.

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Objectives of the NIRP

a. Avoid, minimize and mitigate negative impacts of involuntary

resettlement by facilitating the reestablishment of the DPs on a productive and self-sustaining basis. The policy should also facilitate the development of the DPs and the project;

b. Ensure that DPs are fully and promptly compensated and satisfactorily resettled. The livelihoods of all displaced persons should be re-established and their standard of living improved;

c. Ensure that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purposes by the state;

d. Assist DPs in dealing with the psychological, cultural, social and other stresses caused by land acquisition;

e. Make all DPs aware of process available for redress of grievances, which are easily accessible and immediately responsive; and

f. Have in place a consultative, transparent and accountable involuntary resettlement process with a time frame agreed to by the project executing agency and DPs.

36. Adhering to the above objectives the scope of the NIRP includes all development-induced land acquisition or recovery of possession by the state. NIRP requires that a comprehensive RP be prepared where 20 or more families are displaced. In case where less than 20 families are displaced, the NIRP still requires a RP with lesser level of detail. NIRP applies to all projects irrespective of source of funding.

37. A detailed NIRP which include rationale, objectives, scope, policy principles, institutional responsibilities, monitoring and evaluation etc. are given in the Annex 4.

2.2. SPS 38. The SPS recognizes and addresses the resettlement and rehabilitation impacts of all the displaced persons (DPs), irrespective of their titles, and requires the preparation of RP in every instance where involuntary resettlement occurs. The ADB policy requirements are:

(a) avoid or minimize impacts where possible;

(b) consultation with the displaced people in project planning and implementation;

(c) payments of compensation for acquired assets at the replacement cost;

(d) ensure that no one is worse off as a result of resettlement and would maintain at least their original standard of living.

(e) resettlement assistance to Displaced persons, including non-titled persons; and

(f) special attention to vulnerable people/groups.

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39. The main policy principles of the SPS are:

Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

Carry out meaningful consultations with displaced persons, host communities, and concerned non-government organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and reporting of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the displaced persons‟ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets.

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Prepare a resettlement plan elaborating on displaced persons‟ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to displaced persons and other stakeholders. Disclose the final resettlement plan and its updates to displaced persons and other stakeholders.

Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project‟s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

Existing Gaps in LAA and NIRP vis-à-vis SPS

40. There are differences between LAA and the NIRP and SPS in relation to approach to land acquisition and payment of compensation. Although the policies of ADB and NIRP are more or less congruent, there are differences when compared with the LAA and SPS. Even though the LAA is not subordinate to the NIRP, for the payment of compensation the NIRP and SPS are being followed. The gaps in the LAA vis a the NIRP and the SPS are analysed in the table below.

Table 1 Legislative GAP Analysis

Aspect GOSL Laws/Policies ADBs SPS Measures to Bridge the GAP

Requirement of a RP

Does not require under the LAA as amended, NIRP requires that a comprehensive RP for projects exceeding displacement of more than 20 families and a RP of lesser detail if the number of families affected is less than 20.

A project affecting 100 families is considered as a prescribed project under the NEA; such project requires the approval of the CEA before

RP is required

For category A and category B projects.

PMU follow the NIRP which spell out the type of RP to be prepared and implemented.

12


implementation but does not address the resettlement issues.

Compensation for non-title holders

Provided in the NIRP, Not in the Act (LAA)

The borrower will compensate them for the loss of assets other than land such as dwellings and also for any other improvements to the land at the full replacement cost. The entitlements will be provided to those who have occupied the land or structures in the project area prior to the cut-off date for eligibility or resettlement assistance.

Provision is available in the entitlement package approved by the Cabinet of Ministers to make fair and just treatment.

Entitlement matrix is a part of RP

Consultation with stake holders

Does not require under LAA as amended. It is a requirement under NIRP

Consultation is required with displaced persons (Same as NIRP)

PMU follow the NIRP and Safeguard Policy Statement, 2009 as indicated in the RP

Public disclosure

Provided in the NIRP, Not required under the LAA as amended. If the project is subject to an IEE or EIA, the report should be available for the information of the public or public comments respectively.

Public disclosure is required RP will be disclosed to the public and will be available in the website of ESD and ADB. The entitlement matrix will be translated to local language and distributed to the DPs.

Income Restoration

Act does not provide, NIRP Provides. Income should be restored and livelihood be re-established and standard of living improved.

Income should be restored PMU follow NIRP and Safeguard Policy Statement, 2009, details are given in the RP

Taking over possession before Payment of compensation

Act provide, NIRP does not allow

Does not allow PMU will follow the NIRP and Safeguard Policy Statement, 2009 as indicated in the RP

Grievance Redress Mechanism

No provision in the LAA as amended a requirement under the NIRP

Requirement under the Safeguard Policy Statement, 2009

Provided in the RP

Acquisition Under 38(a) of LAA, after 48 The borrower /client will PMU follow the

13


within 48 hrs on an urgency basis

hrs, even without paying compensation. But according to NIRP, not without paying replacement cost and reasonable notice NIRP does not supersede the LAA since it is a statutory act. But in order to provide relief to the displaced people, NIRP is being implemented on a directive by the Cabinet of Ministers of the GOSL.

ensure that no physical or economic displacement will occur until 1) compensation at full replacement cost has been paid to each displaced person 2) other entitlements listed in the RP have been provided to the DPs 3) A comprehensive income and livelihood rehabilitation program supported by adequate budget is in place for the DPs.

NIRP and SPS

Replacement Cost

Provided in the NIRP, replacement cost according to regulation gazetted on 20th January 2009.

At full Replacement Cost Project will follow the NIRP and Cabinet approved entitlement matrix.

Assistance for vulnerable people

LAA is silent on this aspect. NIRP require special treatment for the vulnerable groups.

Safeguard Policy Statement, 2009 requires a special assistance for the vulnerable people.

Provision is available in the RP.

Compensation by

instalments

LAA provides statutory compensation to be paid in instalments, but NIRP does not agree

As per SPS full compensation at the replacement cost has to be paid to the displaced person before any physical or economic displacement will occur.

RP provides statutory compensation to to be paid in one lump sum.

Source: Consultations, NIRP, Safeguard Policy Statement 2009 and LAA as amended.

40. It is proposed to bring amendments to the LAA, during this process the gaps that exist between Act and the NIRP might be considered in order to give legislative muscle to the policy on involuntary resettlement. The Safeguard Policy Statement, 2009 and NIRP are almost similar in context.

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CHAPTER 3 – SCOPE FOR LAND ACQUISITION AND SOCIAL BACKGROUND

1. Scope of Land Acquisition The study area covered by the previous study in 2007 covered a stretch of 13 km from Kirulapana to Kottawa and indicates full impacts resulting Land Acquisition. But the rapid appraisal carried out on the two road sections of this road, A004 Kirulapana to Nugegoda end and Homagama end to Godagama indicate partial impact.

42. Five households are displaced as a result of land take over which affects a total population of 74. The extent of land that would be required is 0.0885 Hectares or 885.5m2. As the land to be taken over belongs to the state, the present occupants are legally considered as squatters. Acquisition of land does not arise but compensation will be paid according to the approved entitle matrix for the improvements made on the land and other entitlements applicable to the title holders except for the land.

43. It is observed that no serious social or economic effects will generate resulting this acquisition except for five temporary structures engaged in the informal sector which need removal from the existing ROW. Other residential and commercial units will have minor damages such as removal of parapet walls, gates of residential units and frontages of commercial units etc. Thereby, the scope of land acquisition will be limited to attending to minor damages and payment of compensation for them as relocation of households will not be involved. Table 1 shows the distribution of DP households and projected population.

Table 1 Distribution of DP Households by DS Divisions

3. DS Division 4. Location Type 5. No of DP Households

6. DP Population including Household Heads

7. Homagama 8. Semi-urban/Urban

15 74

Total 15 74

Source: Census Survey 2007

44. The two sections of the A004 highway was observed closely by the consultant and considering the proposed ROW of 25.2m for the first section and 17m ROW for the second section from Homagama, ascertained the number of DPs comparing with the existing ROWs, and centreline of the road section. The outcome of this exercise revealed that there are 15 displaced households (DHs) from Homagama DS Division having partial effects resulting land acquisition for the upgrading of this road project. The breakdown of the DPs in categories is shown in the following Table 2.

15

Table 2 Affected DP Households by DS Divisions and by categories

9. DS Division 10. Full Impact 11. Partial Impact

Res

iden

tial

Com

mer

cial

Info

rmal

Se

ctor

Oth

ers

Res

iden

tial

Com

mer

cial

Info

rmal

Se

ctor

Oth

ers

Homagama 0 0 0 0 3 5 0 0

Total 0 0 0 0 3 5 0 0

Source: Census Survey 2007

Note: Detailed survey of the Displaced Persons has to be carried out to finalize the RP before contract awards and approval sought from ADB.

2. Social Background of the DP Households 45. It is not possible to discuss the actual socioeconomic insights of the DPs in the two sections, but through observations and the nature of the residential/commercial units and informal discussions with them some ideas can be generated.

46. The first section of the A004 road project starts with a mix residential/commercial area residing by very few low income nature families, but they are not seriously affected. Several parapet walls and courtyard of Grama Niladari office will be affected. After this area up to the end of the first section is an area of high business ventures including a large Cargils Super Market, a Mosque and upper middle class houses are meeting which ends near the Anula Vidyalaya. But most of these residential units and Mosque will not be affected as there is sufficient land space for widening.

47. The second section which starts just passing the town of Homagama is dominated by Army buildings. The starting point is the Army Quarters and after passing this area before reaching the temple a commercial area may have little impacts with frontages of several units may be affected. Then again major Army building sites are occupied and the road is fairly narrow, which needs a major widening. Therefore up to Godagama Junction three residential and five commercial buildings will be affected.

48. This second section though it is not urbanised as the Kirulapana area is congested due to activities of the Army. Socioeconomic character of the area in between Army buildings and Godagama junction denotes a semi urban nature with less buildings and greenery.

Note: List of DPs and their socioeconomic profiles of the previous study were not available.

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3. Indigenous People

49. There are no indigenous people located in the vicinity of this road. The screening form is prepared and submitted as Annex 3 (b).

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CHAPTER 4 – INFORMATION DISSEMINATION, CONSULTATION AND PARTICIPATORY PROCESS

1. Information Dissemination and Consultation 50. Prior to land acquisition and resettlement, workshops were conducted to apprise the principle agencies responsible for land acquisition namely, Ministry of Land and Land Development, Departments of Valuation, Survey, Government Printer and the Divisional secretaries. These workshops were organized by the PMU with the concurrence of the Ministry of Ports and Highways and Road Development. Public disclosure of information about the road project and maintenance of transparency by the PMU with all stake holders, specially the affected persons is one of the cardinal policies of the NIRP and Safeguard Policy Statement, 2009. When activities of the PMU become transparent it will lead to the establishment of mutual trust between the PMU and the stake holders. This process will have salutary effect on all activities of the road project as suspicion and mistrust can have serious negative effect on the implementation of project activities. After the initial discussions with the officials of the relevant departments, as described in preceding paragraph , prior to commencement of the land acquisition process, series of public disclosure measures were taken to educate DPs on compensation payable and land acquisition and resettlement processes.

51. In 2007 under the previous study two surveys have been conducted. Before the commencement of the Land Acquisition and Socioeconomic Survey, Resettlement Assistants were recruited to facilitate the process of consultation. A work shop was conducted in Colombo for the representatives of the main agencies connected with the land acquisition and resettlement to apprise them of the programme in place to disseminate information regarding land acquisition, preparation of RP and the resettlement process. Thereafter public meetings were held for the stake holders of the Divisional Secretaries divisions including Thimbirigasyaya and Homagama.

52. These meetings were attended by members of the clergy, politicians of the area Gramaniladaris, Samurdhi Niyamakas, Agricultural Assistants, and representatives of the community based organizations, members of the public and representatives of the relevant government departments. Hand outs on the project profile and compensation package were distributed among the participants .Presentations were made by the officers of the PMU on the design of the road project, land acquisition process and brief introduction of the Land Acquisition Act and strategies and proposals to address the resettlement issues. After the presentations a friendly discussion was followed between the officers and the audience to clarify issues which were not fully understood by the members of the public. The participants pledged their support for the expeditious implementation of the project. The information flyer distributed among the participants who are directly involved with the functions of land acquisition and resettlement contains the description of the proposed improvement to the highway and entitlement and the addresses and telephone numbers of persons to be contacted for further

18

clarifications and information. There were few inquiries from DPs subsequent to the meeting PMU had with them. PMU promptly responded to such inquiries.

53. After the meeting with the principal members of the concerned departments, a workshop and two meetings were conducted for the staff of the Divisional Secretary who are directly involved with the functions of land acquisition and resettlement and for the DPs, their representatives, GNN, Samurdhi Niyamakas, representatives of CBOs, with the assistance of Departments of Surveys and Valuation, on the law, procedures and systems in relation to acquisition of land and the payment of compensation.

2. Information Disclosure 54. The disclosure arrangement of information on the land acquisition process, payment of compensation, entitlements which started from the planning stage will continue as a participatory process till the end of the project.

55. The RP should be available for the general public to study and will be displayed at public places such as DS Offices and Local Authorities (Municipal Council/Urban Council/Pradeshiya Saba) where DPs have easy accessibility.

Table 2 Completed and Planned Public Consultation and Disclosure Activities 1. Completed Consultations and Disclosure

Activity Place Objective Timing Number attend

Responsible Unit

Feedback / Issues /

Concerns / Raised

Action Taken

Workshop with concerned Departments

Building Research Centre, Pellawatta, Colombo.

To disseminate information regarding the project and seek their assistance to accelerate the process of land acq &RS

Before meeting the public,

26-05-2007

80 LAR Unit of NHSP

Staff shortages, and assistance from RDA on logistics, sundry expenses

Acquisition Officers to recruit by PMU to assist the DSS, Provide logistical support Surveying of land by Private Surveyors under the supervision of SD

Public Meeting with DPs NGO,CBO and National and Local Politicians

Homagama & Thibirigasyaya Divisional Secretariat

Explain the parameters of the road project, land acquisition process, Safeguard Policy

Before the conduct of the Census &SES Survey

14-06-2007

18-06-2007

123 DS &LAR unit of the NHSP

Loss of income, .resettle at the same location even if the remaining extent does not conform to the

UDA has agreed to allow building at the same location even if the remaining

19

Activity Place Objective Timing Number attend

Responsible Unit

Feedback / Issues /

Concerns / Raised

Action Taken

Statement, 2009 & NIRP on

Involuntary resettlement

Payment of compensation and entitlement matrix

minimum area stipulated or buildings by the UDA. Payment of reasonable compensation issues raised by would be affectees

extent is smaller than the required extent.

Distribution of informative literature

Homagama Divisional Secretariat

Public disclosure, maintenance of transparency, Confidence building,

Before the conduct of the Census &SES

09-01-2011

134 LAR unit of the NHSP & ESD of RDA

Accelerate the land acquisition and resettlement process, request by DPP

Negotiating with the relevant agencies to accelerate the land acq. Process

2. Planned Consultations and Disclosures

Note:The consultation is an on-going process there is a continuous dialogue between the resettlement staff and the DPs.

Activity Objective Timing Responsible Unit / Agency

Visit to DP‟s Residences

Distribute the Sec2 Notice With the publication of the SEC notices

DS,GNN,PMU

Consultation with DPs

Explain the process leading to the taking over possession of lands

Before publication of the Sec 38 (a) notice

DS,ESD,PMU,

Meeting DPs in groups GN Division wise

Prepare them to face the title determination inquiries Sec.9 ( 1) and brief them on the documents to be submitted at the inquiry

Before Sec.9(1) inquiries

GNN, RAA & PMU

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CHAPTER 5 – ENTITLEMENTS

56. The cabinet of ministers has approved an entitlement package to cover all most all anticipated losses by the potential affecters. Interests of the lessees, vulnerable groups, loss of employment and income from businesses have been taken care of by the compensation package applicable to the displaced persons of road project A024. This package is more advantageous to the DPs than the package implemented in the Southern Transport Development Project (STDP) and covers all aspects of losses anticipated by the DPS.

1. Highlights of Entitlements

1.1. Replacement Cost 57. Replacement cost could be defined as the compensation required in replacing a similar land in a similar location and a building of similar floor area and construction.

1.2. Loss of Buildings 58. Replacement cost will be paid for all buildings irrespective of the age of the building. DPs are entitled to retain the salvage materials .In order to translate the concept of helping the displaced persons to achieve a higher level of living standard than what they experienced prior to the implementation of the project, A DP who was in occupation of even a cadjan hut (temporary) is entitled to a cash grant of Rs.300,000 for the loss of the house in addition to other compensation available for resettlers.

1.3. Loss of Agricultural Land 59. Agricultural land is a land that is under perennial crops or cultivated seasonally or annually by the owner or lessee or tenant, in conformity with the current international practice, households will be classified as fully displaced persons when the loss is,

Total area Affected area Compensation applicable

Less than 01 acre 10% Cash or land (if available) Compensation, for loss of crops Livelihood grant

More than 01 acre 25% same as above

60. Title holders who lose less than 10% from a total holding is considered as DP,s who are not significantly affected, wherever possible land to land option will be considered in addition to the compensation of loss of income, where suitable land is not available adequate compensation for the loss of land will be paid as per the entitlement matrix.

21

1.4. Temporary Loss of Private Land 61. During construction temporary occupation of privately owned land may be required to excavate materials for filling and formation of embankments. If such a necessity occurs the contractor with the concurrence of PMU will sign a temporary occupation contract with the owner of the land specifying:

a. Period of occupancy b. Terms and compensation amounts mutually agreed c. Compensation for material losses for the duration of the temporary

occupation period d. Compensation for other disturbances and damages caused to property e. the frequency of compensation payment f. Rehabilitation and restoration measures g. Land will be returned to the owner at the end of the temporary

occupation period restored to its original condition or improved, according to the agreement

1.5. Determination of Rates for Properties Acquired 62. The rates that will be used for the calculation of compensation for the acquired properties will be based on the prevailing market rates in order to reflect the cost of replacement of the properties acquired. NIRP and Safeguard Policy Statement, 2009 mandate that the compensation payable to DPs should be adequate enough to replace their loss assets. Project has taken into consideration those policy guidelines in determining the relevant rates.

1.6. Special Needs of Vulnerable Households 63. Vulnerable households have being identified by the land acquisition and SES survey conducted by the project in the second half of July 2007.Women headed households, very elderly, disabled and people with title to their land have been included in this category. They are entitled to an special grant of Rs.15,000 per household in addition to the compensation available for other losses. Assistance will be provided by the PMU during the construction of houses by them.

1.7. Special Preparation for the Vulnerable Groups 64. A plan of action will be specially designed for the vulnerable groups as they would feel the effect of resettlement more fully than others .The identified group of vulnerable people will be helped by community organizers who will identify their needs and interests in consultation with them, prior to resettlement these community workers will help the vulnerable DPs to build their skills, identify opportunities, and review constraints that hinders improvement to their socio economic status. The resettlement options also could be discussed with them to enable them to select the best option available to them. The small groups of vulnerable people depending on the category of vulnerability may be linked to national institutions that provide assistance and

22

interventions to such groups. As an example disabled people could be linked to the National Disabled Council which falls under the purview of Ministry of Social Services.

2. Entitlements for Tenant Cultivators

Under Paddy Lands Act

65. Paddy Lands Act of 1958 was one of the most socially progressive legislation ever to be enacted by the Parliament of Sri Lanka. The Paddy Lands Act ensures the perpetuity of tenancy. As per the provisions of the Paddy Lands Act, part of the compensation of the acquired property is allocated to the tenant.

Land Owned by State Plantation Corporation

66. People who are in possession of lease agreements with the plantation corporations are entitled to loss of income for the balance period of the lease agreement.

Project Entitlement Matrix 3. T

ype of loss 4. E

ntitled Persons 5. E

ntitlements 6. I

ntent/ Requirement 7. R

esponsibility

8. A. AGRICULTURAL LAND

9. Loss of Agricultural land

10. Owner with title deed or registration certificate

11. All (cash) payments for land will be at replacement costs. Cash payment for loss of standing crops and trees at market prices In case the DP loses 10% or more of their productive, income generating assets and / or remaining portion is economically not viable for continued use as determined by LARC, these options will be available: - 1) If opted by DP, the remainder land will be acquired or injury will be paid at replacement cost if economically not viable. Reasonable time will be given to harvest perennial crops if not payment will be made at market value. 2) Preference will be given to DPs for land for land option (similar location and productive quality, subject to availability or cash payment for loss of land at

12. Payment for lost assets and restoration of livelihood. Payment for loss of income based on entitlement under Land Acquisition Act [46 1 (iii)] or as determined by the LARC.

13. RDA, CV, DS, LARC. LARC

23

full replacement costs. Cash Payment for loss of income for portion of land as per the land acquisition Act or as determined by the LARC.

14. Loss of access to agricultural land

15. Tenant, user with lease

16. No payment for land. Cash payment for loss of standing crops and trees at market prices, if cultivated by tenant or user with lease; AND Cash payment for loss of net income for portion of land affected for the remaining leased/assigned period.

17. Payment to cover lost crops and restoration of livelihood

18. RDA, CV, DS, LARC.


20. Ande farmer (sharecropper)

21. No payment for land. Cash payment for loss of standing crops and trees at market prices; AND Transition subsistence (in cash or kind) allowance equivalent to loss of crop or harvest for portion of land affected for the remaining period of sharecropping agreement.

22. Payment to cover lost crops and restoration of livelihood



25. Non-titled user or squatter on private land or state land

26. No payment for land. Cash payment for loss of standing crops and trees at market prices, if cultivated by him.

27. Payment to cover lost crops and restoration of livelihood.


29. B. RESIDENTIAL LAND AND STRUCTURES

30. Loss of Residential land and structure

31. Owner with title deed or registration certificate

32. All (cash) payments for land and structure will be made at replacement costs. All payments at replacement cost in cash, according to the actual loss to repair or rebuild the structure to original or better condition when remaining land sufficient to rebuild upon; For structures not having sufficient land to rebuild upon will be entitled to the following: 1. All (cash) payments for land and structure at full replacement cost (for materials and labor) in cash, WITHOUT deduction for depreciation or salvageable materials; 2. Assistance from LARC to locate

36. Payment for lost assets, assistance to reorganize on existing land or relocate on alternate land and support for transition period.

RDA, CV, DS, LARC.

24

alternative plot for relocation; OR 3. Rehabilitation package G 2. Shifting allowance see G1.

33. 4. Displaced persons who lose their residence completely he/she is entitled to extra allowance between Rs. 150,000 to Rs. 500,000 depending on the location.

34. 5. For non-title holder the allowance for a alternative land varies from the Rs. 100,000 to Rs. 250,000 depending on the location.

35. Rent allowance varying from Rs. 20,000 to Rs. 100,000 will be paid according to the location (Local Authority Area). Minimum payment for a house (Hut) irrespective of the title will be Rs. 300,000

Shops and Houses under the Rent Act

Owner/renter/ lessee

Difference between replacement cost and statutory payment to be divided between the owner and the occupant on the following basis.

Payment of compensation at replacement cost, according to the following criteria.

Period of occupation

% of payment

occupant owner

Over 20 years

75 25

10-20 years

50 50

05-10 years

25 75

Less than 05 years

10 90

Equitable distribution of compensation depending on the period of occupation.

D.S, Valuation Department, RDA

Loss of rental Tenant, user If there is partial loss of rental Cash payment for RDA, CV, DS,

25

accommodation with lease accommodation, DP has the option to stay with the owners agreement OR if DP chooses to move out, cash assistance of Rs. 15000 AND Assistance in finding new affordable rental accommodation.

rental allowance or cash value of remaining lease, assistance for finding alternate rental accommodation and support during transition period.

LARC.

Loss of residential structure

Non-titled user, non-permitted user or squatter

No payment for land. All payments for structure at replacement costs in materials, cash according to the actual loss for repairing or rebuilding the structure; AND If affected land is state land DP may rebuild on the remaining land with permission, and if affected land is private land the project will encourage DP to relinquish the land and relocate on alternate land or DPs can rebuild on existing land then shifting assistance G 1 i. If DP has to relocate then Rehabilitation package – G 1 ii and G 2.

If part of the structure is acquired the area to be considered for payment will be calculated up to the structural support point.

Payment for lost assets, assistance to reorganize on land or provision of alternate site if choosing to relocate and support for transition period.

RDA, CV, DS, LARC.

C. COMMERCIAL LAND AND STRUCTURE

Loss of commercial land and structure

Owner / operator of registered business

All (cash) payments for land lost at full replacement cost; Payment at replacement cost in cash, according to the actual loss to repair or rebuild the structure to original or better condition when remaining land sufficient to rebuild upon; Payment for any associated loss of income while commercial structure is being rebuilt. For structures not having sufficient land to rebuild upon will be entitled to the following: 1. All (cash) payments for structure lost at full replacement cost (for materials and labor) cash, WITHOUT deduction for depreciation or salvageable materials; 2. Assistance from LARC to locate alternative plot for relocation; OR if opted by DP on recovery of the undeveloped value of the plot depending on

Project shall give reasonable time for DPs to continue their business operation while rebuilding their structures. DPs will rebuild their structure as soon as payment is released and clear the area in the agreed timeframe. Transition assistance and income restoration.

RDA, CV, DS, LARC.

26

availability of land 3. For income losses cash payment not exceeding three times the average annual net profits from business, as shown by the books of accounts, for three calendar years immediately preceding acquisition or livelihood restoration grant, whichever is higher 1. For businesses who do not maintain books of accounts cash payment equivalent to 6 months net income OR 4. Livelihood assistance grant, Rs 15,000.00, whichever is the higher; 5. Rehabilitation Package – G 2 and G2 ii if required.

Loss of commercial Structure

Tenant / operator of registered business

If there is partial loss of structure, DP has the option to stay with the owners agreement or if DP chooses to move out, cash assistance of 15,000 AND Assistance in finding new affordable rented premises to re-establish business For income losses cash payment not exceeding three times the average annual net profits from business, as shown by the books of accounts, for three calendar years immediately preceding acquisition or livelihood restoration grant, whichever is higher. For businesses who do not maintain books of accounts cash payment equivalent to 6 months net income OR Livelihood assistance grant of Rs.15,000.00, whichever is the higher.

If part of the structure is acquired the area to be considered for payment will be calculated up to the structural support point.

Cash payment for livelihood restoration, assistance for finding alternate rental accommodation and support for income losses and during transition period.

RDA, CV, DS, LARC.

Loss of commercial Structure

Owner or operator of non-registered business / squatter

For structure – all payments for structure lost at replacement cost in cash, according to the actual loss; AND For income - cash payment equivalent to 6 months income OR Livelihood assistance grant, whichever is the higher; AND If affected land is state land DP or if land is private land the project will encourage DP to

Payment for lost assets, transition assistance and income restoration

RDA, CV, DS, LARC.

27

relinquish the land and relocate on alternate land or; AND Rehabilitation package – Items G.2, and G.2 ii if required.

D. OTHER PRIVATE PROPERTIES OR SECONDARY STRUCTURES

Partial or complete loss of other property or secondary structure (i.e. shed, outdoor latrine, rice store, animal pen etc)

Owners of structures (regardless if the land is owned or not)

All (cash) payments for affected structure at replacement cost; OR Cost of repair of structure to original or better condition; OR Cash assistance for relocation of structure.

Payment for loss and relocation if required

RDA, CV, DS, LARC.

Loss of tombs or graves

All owners All cash payments per tomb to cover the cost of exhumation (including any religion ceremony) if required relocation OR cash payments of Rs. 15,000 per tomb to cover the cost of exhumation (including any religious ceremonies if required)

Payment for loss and relocation if required

RDA, CV, DS, LARC.

E. LOSS OF INCOME OF EMPLOYEES OR HIRED LABORERS

E.1 Temporarily Affected

While business re-establishes (i.e. reorganizing on remaining land or relocating in the same area)

All affected employees, wage or daily laborers‟ in private or government businesses

Cash payment of Rs. 15000 or Three month salary whichever is more

Businesses will be encourage to retain existing employees Payment for lost income during business re-establishment

RDA, CV, LARC

E.2 Permanently Affected

Job loss due to relocation of business to another area or business operator decides not to re-establish

All affected employees, wage or daily laborers in private or government businesses

Cash payment of Rs. 15000 or Three month salary whichever is more

Payment for lost income, rehabilitation package to provide support and income restoration

RDA, CV, LARC

F. TREES & STANDING CROPS (already included under A)

Loss of crops and trees

Person who cultivates crops and/or trees owns by private /state; if the trees in private the timber given to owner and if

For owner, payment for crops and trees at market prices; For tenant, payment for crops shall be paid to tenant; For sharecropper, payment for crops shall be shared between owner and sharecropper according to the sharecropping agreement; For all - advance

Payment for losses Payment for trees calculated on market value on the basis of land productivity, type, age, and productive value of affected trees

RDA, CV, DS, LARC

28

trees in state land the timber given to timber cooperation; (regardless if the land is owned or not)

notice to harvest crop; AND Payment for net value of crops where harvesting is not possible; AND Cash payment for loss of trees and standing crops at market prices; AND Rights to resources from privately owned trees (i.e. timber or firewood) All felled trees will be given back to the owners.

G. LIVELIHOOD RESTORATION & REHABILITATION ASSISTANCE

G.1 Materials Transport Allowance

i. Reorganization of residential structure

DPs reorganizing or rebuilding on same plot

Cash assistance (shifting allowance) of Rs 5000 to 15000 depending on the floor area of the house DP/household

Payment for disturbance and to assist in rebuilding

RDA, CV, LARC

ii. DP requiring relocation for housing

Relocating DPs Cash assistance (relocation allowance) of Rs. 5000 up to an amount of Rs 15,000 DP/household for transportation to new location or site based on floor area of the house in occupation before relocation.

Allowance to cover transport of household or commercial effects, salvaged and new building materials

RDA, CV, LARC

G.2 Livelihood Restoration (Grant & Training)

i. Permanent effects on livelihood

DPs/household Livelihood restoration grant - as cash assistance of Rs 15,000 per household (plus professional assistance and advice, if required, to invest funds or to set up a business at a commercially viable location).

Cash sum to offset income losses not directly paid for, to provide support while business re-establishing or as start-up investment for new business if DP has to change livelihood.

RDA, CV, LARC

ii. Permanent effects on livelihood

Severely affected farmers remaining on affected land

Assistance to increase productivity on remaining land (i.e. increasing cropping intensity, use of high yielding seeds, diversification and introduction of new seeds or crops etc) and assistance to access existing subsidies.

Access to existing agricultural extension services and development of new services as per the specific needs of DPs as identified through consultation with them, support for access to existing subsidies, development and training from Department of Agriculture, Tea Smallholding

RDA, CV, LARC

29

Authority, Agrarian Services Department, Coconut Development Board, and Rubber Control Department

G.4 Special Assistance

Agricultural Lands other than paddy lands title holder

owner For the agricultural land compensation payable under A and B in item one is applicable, payment of 5% of the statutory value subject to a minimum value of Rs.10,000 and a maximum of Rs.100,000, if vacant possession is handed over on or before a date nominated by the RDA/DS

Sufficient time to be given to harvest crops or Compensation for the loss of crops.

RDA, Valuation Department, D.S

Incentive payment

Owner, or occupant at the time of handing over the property

Ex-gratia payment of 25% of the statutory value of the building to be paid, if the vacant possession is handed over on a date stipulated by the D.S/ RDA, subject to a minimum of Rs.25,000 and maximum of Rs.500,000

To encourage DPs to handover the acquired properties on a timely basis.

D.S, Valuation Department, RDA

Effects on vulnerable DPs

Vulnerable DPs including the poor, elderly DPs, ethnic minority households IPs, female - headed households, and disabled

A special grant of Rs 15,000 per DP/household to improve living standards of vulnerable DPs and households Assistance to vulnerable households in finding suitable land for relocation and shifting.

Assistance, over and above payment for lost assets, to reduce impacts of resettlement which can disproportionately affect the already vulnerable and to ensure that the project does not simply re-establish levels of poverty, vulnerability or marginalization

RDA, CV, LARC

H. COMMUNITY ASSETS

Loss of buildings and other structures (schools, temples, clinics, walls etc), infrastructure

Divisional Secretary of the division, urban ward, village, local community or local authority owning

Restoration in existing location of affected community buildings, structures, infrastructure and common property resources to original or better condition; OR Replacement in alternative location identified in consultation

Full restoration of buildings, structures, infrastructure, services or other community resources by contractor (costs to

RDA, CV, LARC

30

(local roads, footpaths, bridges, irrigation, water points or communal hand pumps etc), common resources (such as water supply, community forests)

or benefiting from community property, infrastructure or resources

with affected communities and relevant authorities; OR (Cash) Payment at full replacement cost; AND restoration of buildings, structures, infrastructure, services or other community resources.

be borne by project) or payment for such if agreement for local authority or community to undertake the restoration works.

Any unanticipated adverse impact due to project intervention

Any unanticipated consequence of the project will be documented and mitigated based on the spirit of the principles agreed upon in this policy framework.

Note: Ande farmer is a person who cultivate a land owned by another on a harvest sharing basis.

Cut-off Date for consideration of payment of compensation

67. Cut-off date for consideration of payment of compensation is the date of publication of the Section 2 notice under Land Acquisition Act. For A024 the said date is 10 December 2007. The cut-off date is common to both title and non-title holders.

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CHAPTER 6 - GRIEVANCE REDRESS MECHANISM

68. The Project will pursue a participatory approach in all stages of planning and implementation. This is expected to ensure that the affected people have nothing or little to complain about. However, some people may still remain dissatisfied for some reason or the other. Many grievances arise due to inadequate understanding of project policies and procedures, and can be promptly resolved by properly explaining the situation to the complainant.

69. Timely redress of grievances is critical to the completion of a project in a satisfactory way. The effort will therefore be to first seek resolution of these grievances at the local level through the mediation by Grama Niladhari, village leaders, and by involving resettlement specialists, NGO and others as necessary. The Samatha Mandala, committees set up by the Ministry of Justice for conflict resolution can also be approached.

1. Grievance Redress Committee 70. For complaints and disputes that cannot be settled locally, RDA will establish a Grievance Redress Committee (GRC) with well-defined functions, composition, and a procedure to redress grievance. Below describes the grievance redress process.

71. For Whom: Any affected person (DP) may approach the GRC to seek its assistance in resolution of any problem, complaint or dispute concerning land acquisition, compensation and resettlement. DPs dissatisfied with awards may also appeal to the GRC where GRC will refer in to the appropriate forum after examining the complaint. Only appellants or others specifically authorised may attend the GRC meetings.

72. Functions: The function of the GRC is to remove grievances, settle disputes of the affected persons regarding land acquisition, compensation and resettlement. The GRC mandate and procedures will be given wide publicity so that DPs have a better understanding of their entitlements, rights, and responsibilities.

73. Composition: The GRC will be a five member committee and headed by the Assistant Divisional Secretary with the relevant division: Project Manager/Resettlement Officer, District Valuation Officer, and four civil society representatives (who may be chosen from among the recognized NGOs/CBOs, clergy, persons representing DPs groups and women). In addition, the Resettlement Officer/SIMO of the RDA will function as the Secretary of the GRC and will be responsible for keeping record of all grievances registered and action taken on them. When required, the GRC can seek the assistance of other persons/institution.

74. Venue of the GRC Meetings: The GRC will meet at the project site keeping in view the convenience of the affected persons. But it will be free to hold its meetings at any other locations if that will be more convenient to DPs.

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75. Working System: The GRC will deal promptly with any issue relating to land acquisition, compensation and resettlement that is brought before it. The GRC will make all efforts to see that these issues are also resolved within 2–3 weeks. The GRC will take decisions on the basis of a majority vote.

76. Powers: The GRC has no authority to deal with cases pending in a court of law. It cannot challenge the legal entitlements of DPs. The GRC will also refrain from making decisions on issues relating to design and related engineering matters and on pending compensation cases. However, the GRC can invite the contractor and the engineer to clarify issues including construction impacts.

77. Procedure for Resolution of Disputes: Affected persons will be free to present their grievances without any fear or pressure from government authorities. They can present their grievance verbally. They can also present their grievances in writing, for which assistance will be provided if so required.

78. The decisions of the GRC will be conveyed to DPs in writing. Three copies of the decisions will be provided: one for the DP, second copy for the Project office and the third copy for the Divisional Secretary.

79. The decisions of the Grievance Redress Committee will be in conformity with the resettlement policy and the entitlement matrix.

80. Appeal against GRC Decisions: Affected persons not satisfied with the GRC decisions can appeal to higher authorities in the Project, the Ministry of Highways, or to even Courts of Law.

81. The affected persons who are aggrieved by the decision of GRC will be free to approach higher authorities for grievance redress. Grievances relating to land titles, which is a legal issue, will remain outside the purview of this Committee, and persons with such grievances will be advised to approach the appropriate courts of the laws to settle such disputes. DPs will be exempted from all administrative and legal fees associated with the grievance settlement procedure, except for cases filed in courts.

82. Role of Secretary GRC: PMU/Secretary will educate public regarding the GRC process. All complaint will be documented by secretary of GRC. He will arrange GRC meeting when sufficient number of complaints are available. All correspondence regarding the GRC will be attendant to by him. Secretary/PMU will inform the DPs on the roll of the GRC through GN and CBOs.

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2. The proposed composition of the GRC

Asst. Divisional Secretary

Chairman

Representative from the PMU (to be the Secretary to the GRC)

President Peace Council

Member of Clergy

Representative of NGO/CBO

Land Acquisition Compensation Review Board

83. There is a provision in the LAA for any aggrieved party to appeal to the LARB, in respect of the statutory valuation determined by the Valuation Department. Such appeals should be made within 21 days of the award of the compensation under section 17of LAA.

Table 7C: Grievance Redress Process

Step One The affected person approaches the Project staff at site with a complaint regarding his problems that he thinks have not been addressed properly or compensation is inadequate restore is loss properties and standard of living. The project staff explains him to steps taken to assist him and solved his grievances but, he remains unconvinced.

Step Two Not satisfied with the explanation by the Project staff, DP goes to the Grievance Redress Committee about which he had come to know from a consultation meeting that he had once attended. He first makes his complaint to the GRC verbally but he follows it up with a written petition. The GRC assures him that his complaint will be looked into and a reply sent to him within 4-5 weeks. If the complaint is within the mandate of the GRC, GRC will examine it and submit the findings to appropriate forum for necessary action. If required DP will be invited to GRC when his complaint is taken for scrutiny. If the complaint is not based on a proper understanding of compensation procedure or any legal issue was involved or complaint is not within the mandate of GRC the DP will be accordingly informed within 15 days. This again leaves the DP disappointed.

Step Three The DP persists and this time knocks at the door of the Compensation Review Board with hopes of getting his grievance redressed forever. But this does not happen.

Step Four The last resort left for the DP is the Court of Law if he still feels that none of the above organization has delivered justice to him. The decision of the court would be final. Since his problem has adjudicated by a competent, knowledgeable legal body.

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3. Other agencies that the DPs could forward their grievances

3.1. Samatha Mandalaya – SM (Board of Mediation) 84. This is a body of distinguished citizens functioning as a conflict resolving committee appointed by the Ministry of Justice for each Judicial District, the decisions of the Samataha Mandalaya is not binding on the parties to the conflict. It has no mandate to enforce decisions, this is purely a consultative process, and disputes between DPs could be referred to SM to persuade the parties to arrive at an amicable solution without resorting to protracted litigation.

3.2. Human Rights Commission (HRC) 85. By the constitution of Sri Lanka, commission has been established to entertain and inquire into the violation of human rights by state officials and agencies, this is a built in mechanism provided by the state to safeguard the rights of the citizens against arbitrary and illegal actions of the state officials. An aggrieved party could seek relief from HRC. Chairman and members of the HRC is appointed by the President on the recommendation of the Constitutional Council.

3.3. Parliamentary Ombudsman 86. Independent official appointed under the Constitution, to inquire into the grievances brought to his notice by the members of the public.

3.4. Parliament Petition Committee (PPC) 87. An aggrieved member of public could bring to the notice of the Hon. Speaker of Parliament through a member of parliament (peoples‟ representative) his grievance. Hon. Speaker will direct the PPC to inquire into the matter. The committee will direct the offending party to provide relief to the aggrieved, if the committee find that relief sought is justifiable.

3.5. Parliament Consultative Committee of the Ministry of Ports and Highways 88. This is another forum where an aggrieved DP could direct his grievance. Secretary to the Ministry of Ports and Highways, Chairman and General Manager and other relevant senior officers are members of this committee which will be chaired by the Minister in charge of the portfolio of highways.

3.6. Litigation 89. Any displaced person aggrieved by a decision of any public official in the process of implementation of the land acquisition and implementation process could challenge such decisions in an appropriate court of law, if such person is unsuccessful in obtaining a reasonable redress through discussions.

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3.7. Legal Aid Commission 90. Government of Sri Lanka has established an agency to help people who cannot afford legal expenses, when they seek redress from the judiciary. On an application made to the Secretary of the Legal Aid Commission with evidence of his income, the Legal Aid Commission, appear for the aggrieved party in a court of law without fees.

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CHAPTER 7 - INCOME RESTORATION AND REHABILITATION

1. Trade and Business 91. As it is a road widening project, only two strips of land from either side of the ROW is being acquired and the number of house hold affected is 15 comprising 74 affected persons. They do not have title to the land they occupy. Land the affected occupy is classified as state land. The total extent of land occupied by them lost to the project would be 0.886 hectares or 885.5m2. Average extent that would be acquired from each DP would be around 59 m2. Only five business establishments get partially affected and the impact on their livelihood is not greatly impacted, however during the interim period there would be some impact on their income. They will be compensated for the loss of income according to the provisions of the entitlement matrix.

92. In addition to the monetary compensation, the DPs will be assisted with counselling and other assistance to develop their businesses.

Project as a Development Opportunity

93. In principle the PMU considers the resettlement programme as a development opportunity for the affected. Project benefits should flow to the affected through institutional interventions such as adequate and timely compensation, income restoration programmes, rehabilitation of vulnerable groups, employment opportunities in construction related activities.

1.1 Identification of Potential Income Restoration Programmes 94. RDA has conceived resettlement as a development opportunity with full rehabilitation and access to project benefits and accordingly the 05 business establishments whose income get affected temporarily will be restored at least to the pre project level with monetary benefits and other delivery system available to the PMU. The project will not differentiate between the title holders and non-title holders when this programme is implemented. Everyone will be afforded an opportunity to improve their living standards.

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CHAPTER 8 - RESETTLEMENT BUDGET

1. Total Cost for Land Acquisition and Compensation for lost assets 95. The total land area acquired for the road project amount to 35 perches.

Table 3 Estimated Cost of Land Acquisition and Resettlement of Road Project A004

Item No Item No Unit Rs / Unit Total (Rs) Total (US$)

Compensation for Lands

Agricultural Land

Not applicable because of the land owned by the state

Residential Land

Commercial Land

Bare & Other Land

Incentive Allowance

Compensation for Structures

Permanent

Houses Class -1

734 Sq.ft 2,750 2,018,500 17,552

Shop Class-1 1,205 Sq.ft 2,750 3,313,750 28,815

Shed Class - 2 105 Sq.ft 400 42,000 365

Temporary Class- 2

125 Sq.ft 300 37,500 326

Other Structures class

1,530 Sq.ft 400 612,000 5,322

Incentive Allowance

25% of statutory compensation

752,969 6,548

Compensation for Loss of Income

Business Income

5 Nos 15,000 75,000 652

Agricultural Income

0 Nos 0 0 0

Loss of Wage / Salary

7 Nos 15,000 105,000 913

Trees Fruit Trees 10 Nos 2,000 20,000 174

Timber 7 Nos 5,000 35,000 304

Allowances Income Restoration

5 Nos 15,000 75,000 652

Shifting Allowance

8 Nos 5,000 40,000 348

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Item No Item No Unit Rs / Unit Total (Rs) Total (US$)

Relocation Allowance / rent

8 Nos 50,000 400,000 3,478

Vocational Training Grant

0 Nos 0 0 0

Special Grant for VP

0 Nos 0 0 0

Sub Total 7,526,719 65,450

Administrative Cost 5% 376,335 3,272

Contingencies 10% 752,672 6,545

Total 8,655,726 75,267

Source: Consultations and Secondary Data

@ Cost of conducting of consultations and cost of operation of GRC are included in the budget item of Administrative Cost.

Note: I Hectare is equivalent to 395.25 perches

1 Acre is equivalent to 160 Perches

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CHAPTER 9 – IMPLEMENTATION SCHEDULE

95. A time-bound implementation plan is envisaged to be implemented for each activity barring a force majure. Resettlement activities will commence from 1 March 2011 to 30 October 2012 with the recruitment of Team Leader/Consultants, Resettlement Assistants and supporting staff. The resettlement plan will be implemented during a period of one year from March 2011.

4. Activities

5. Time after Commencement

6. Responsibility

7. Recruitment of resettlement staff and initial training

8. Month 1

9. M/OH, PMU/RDA,

10. Conduct of Census & SES and input of data &analysis

11. Month 2-3

12. PMU, LARD/ESD

13. Preparation of RP and submission to M/L&ADB for approval

14. Month 4

15. PMU, M/OL, ESD, JBIC

16. Land Acquisition –Process*

17. Month 1-9

18. PMU, DS, SD, VD, GP, RDA, M/OH, M/L

19. Payment of Compensation**

20. Month 6-10

21. PMU, S, SD, VD, M/OH, CSC, NGO

22. Relocate houses, shops, businesses

23. Month 10-12

24. PMU, LARD/ESD, CSC, NGO

25. Clear the ROW

26. Month 11 - 12

27. PMU, CSC

28. Issue notice for commencement of civil workers

29. Month 10-12

30. PMU, M/OH, JBIC

31. Income Restoration

32. Month 11 - 12


34. Management Information System

35. Month 1- ongoing


37. Grievance Redressing

38. Month 5 - ongoing

39. GRC, Samatha Mandala, Other state institutions

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Verification of monitoring

information by external expert

Month 6 – 18 External monitor, PMU,

ARD/ESD&JBIC

Note: Sometime this period can be reducing, if the DPs are willing to negotiate for a compensation package with the authorization concerned.

** Though land acquisition in legal terms is not involved, compensation for the improvements made on the land had to be paid. For this purpose the steps to be taken to pay compensation has to be followed including obtaining the statutory valuation and the replacement cost of the improvements done (buildings and other structures) .The Statutory valuation is required to pay the incentives.

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CHAPTER 10 - INSTITUTIONAL FRAME WORK FOR RESETTLEMENT

96. Ministry of Ports and Highways is administratively responsible for the implementation of the project through the RDA. Accordingly RDA has for this purpose established a project management unit (PMU) to implement and monitor day to day activities of the road project. The PMU has a certain degree of financial autonomy and administrative flexibility subject to general guidelines issued by the Management Services Division of the Treasury and the Ministry of Ports and Highways through RDA.

97. Implementation of a project to open up a new road or improve and widened an existing road involve number of legal and social functions in addition to the construction programme.

98. The following state agencies are directly involved in the activities of the project in addition to the PMU:

1. Ministry of Ports and Highways 2. Ministry of Land and Land Development 3. Divisional Secretary and his Grama Niladaris 4. Survey Department 5. Valuation Department 6. Government Printer 7. Central Environmental Authority 8. Urban Council Kalutara 9. Ceylon Electricity Board 10. Water Supply and Drainage Board 11. Sri Lanka Telecom Ltd.

99. Contractors and Consultants employed by the PMU, Community Based Organizations of DPs, NGOs and other Civic Organizations also play a significant role in the implementation process of the road project.

1. Project Management Unit 100. The Project management unit is headed by the Project Director assisted by engineers and two consultants on land acquisition and resettlement and the supporting staff on administrative and financial matters.

101. PMU performs the following major activities

Conduct awareness meetings with stake holders to disseminate information in respect of the project and act on the feedback received after such meetings

Distribute informative bulletins to ensure transparency

Conduct land acquisition and SES to collect necessary data for the preparation of resettlement plan.

Coordinate the land acquisition process with the DS and the relevant government agencies

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Prepare resettlement plans and implements them to restore the lives of the Displaced persons at least to the pre project level, after obtaining the approval of the Ministry of Land and Land Development and ADB.

Execute a reasonable compensation package to realize the objectives of the NIRP.

Coordinate with related state agencies to restore/improve the income of the DPs.

Coordinate with the community based organizations to assist the DPs in resettlement activities.

Identify resettlement sites in consultation with the DPs and host communities.

Assist DPs on resettlement in new sites selected by them.

Expedite the payment of compensation by assisting the DS and other relevant parties.

Coordinate the activities of GRCs.

Assist the vulnerable.

Monitor the resettlement plan with identifiable indicators.

Develop a plan to address gender concerns.

Implement the construction programme through contractors and supervision consultants.

Monitor the construction programme.

Submit periodical reports to the relevant state agencies and ADB.

Ensure flow of funds to maintain a healthy cash flow.

2. Environmental and Social Division (ESD) and Land Division 102. ESD and Land Division are responsible for policy issues and provision of guidelines on land acquisition and resettlement to the PMUs. The ESD assist the PMU in conducting the land acquisition and SES surveys, training enumerators and data analysts, reviewing RPs before they are submitted to the ADB.

3. Divisional Secretariat 103. Divisional Secretary is responsible for the acquisition of land. He is the officer legally empowered to acquire land and vest the same with the RDA to commence construction work. Even though legally acquisition of land is the function of the DS, the PMU get involved actively to (i) coordinate the various activities leading to the taking over of vacant possession from the owners of the properties; (ii) prepare proposals for

43

the signature of the Honorable Minister of Land, as well as notices to be published by the DSs for the information of the public; (iii) prepare and publish orders in the government gazette; (iv) assist DS to get the relevant plans prepared by the Survey Department; (v) coordinate with the Valuation Department to get the valuation process expedited; and (vi) provide logistic support to the DSs. These are mainly the functions performed by the PMU to buttress the efforts of the DS to accelerate the complex process of land acquisition.

Field Office of the PMU

104. A sub-office will be established to facilitate the land acquisition and resettlement programme inclusive of income restoration activity. The sub office will be located within the project area. A Resettlement Assistant will be stationed at this office with supportive staff to coordinate day to day activities of the land acquisition and resettlement programme including income restoration portfolio.

4. Construction Supervision Consultants (CSC) 105. The main function of the construction supervision consultant is to monitor, supervise, and guide the construction programme.

Responsibility of RDA on Payment of Compensation

1. Advise the DPs regarding the list of documents to be submitted at the title determination inquiries conducted under Sec.09 of the LAA.

2. Ensure timely cash flows to assist DSS to pay the statutory payments as they are due.

3. Prepare individual cheques and hand them over to DS to effect payments

4. Assist DS to inform the DPs in advance regarding the payment of compensation

5. Prepare the list of DPs with categories of compensation they are entitled to

6. Document grievances if any made by the DP

7. Make arrangement to pay the interest due on the statutory payment through the DS.

8. Arrange to distribute a certificate with details of the compensation paid to each DP.

9. Allow a period of 4-6 weeks after the payment of statutory compensation and other assistance for the DP to hand over vacant possession of the property.

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10. PMU should pay the incentive payment due to the DP immediately after the DP handover the vacant possession within the prescribed period to the DS/PMU.

11. Store all data in respect of compensation in a pre-prepared data base.

12. Maintain a file for each DP, this file should contain, data on each DP collected at land acquisition and SES survey and the details of payments made and other correspondence with the DPs

Responsibilities of DPs during compensation payment

106. Produce all relevant documents at the Sec 09 inquiries to establish the rights and ownership of the DP, including title deeds, government grant certificates, lease permits, rental agreements, documents on tenancy rights, registration extracts etc., which are relevant to each DP.

107. Ensure DP present personally to receive compensation as far as possible, if due to an unavoidable reason if DP is unable to collect the payment cheque personally, a proxy could collect the payment upon authorization by the DP in writing certified by the GN of the area, on the alternative he/her could request for another date to accept the payment. (Statutory payment from the DS)

108. It is the responsibility of the DP to raise objections if any within 21 days of the issue of Sec 10(1) notice to confirm to provisions of the LAA. If no objections are raised order under Sec17 will be issued by the DS conveying the quantum of statutory compensation due to he/her for the property acquired for the particular public purpose.

109. DP should hand over the vacant possession of the property within the prescribed period in order to qualify for the incentive payment.

5. Institutional Arrangement to Attend to Gender Concerns 110. PMU will recruit one female resettlement officer and five female resettlement assistants to attend to the gender concerns of the resettlement programme, in addition to the four consultants/ team leaders, employed by the PMU. One of the consultants/team leaders will be directly in charge of the road project with inputs from other consultants/team leaders as the needs arise. One female resettlement assistant, a graduate with a degree in Sociology will be stationed at the project to attend to resettlement matters including gender concerns. She will be assisted by a female clerk. This arrangement will permit a closer interface by the resettlement staff with the displaced female DPs.

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Table 4 Matrix of Roles and Responsibilities of Government Agencies and Other Organizations involved in Resettlement Planning and Implementation

Agency / Unit Roles and Responsibilities

RDA / PMU Preparation of land acquisition proposals, staffing, coordination with other relevant agencies, consultation with stake holders, dissemination of information, secure funds Lands for resettlement, lands for resettlement, develop infrastructure at resettlement sites, arrange IRP, and internal monitoring

Ministry of Ports and Highways and Road Development

Submit proposals forwarded by the PMU to MOL ,arrange for funds,

Ministry of Land and Land Development

Approval for the publications of relevant orders under LAA.

Divisional Secretary

Acquisition of land, payment of statutory compensation, payment of interest, consultation, information dissemination, GRC, and vesting of acquired land with the RDA

Grama Niladhari Delivery of notices under LAA to the DPs, consultation, facilitate acquisition of alternate lands, preparation of advance tracing and final plan by assisting the surveyors to identify the claimants,

Valuation Department

Preparation of condition reports of the properties to be acquired, preparation of valuation reports,

Government Printer

Publication of gazette notifications relevant to land acquisition

Local Authority approval of resettlement sites, housing plans

Displaced Persons

Help in planning of resettlement site development, IRP

Construction Supervision Consultants

Planning, monitoring construction and resettlements

RDA / PMU Preparation of land acquisition proposals, staffing, coordination with

other relevant agencies, consultation with stake holders,

dissemination of information, secure funds Lands for resettlement,

lands for resettlement, develop infrastructure at resettlement sites,

arrange IRP, and internal monitoring

Ministry of Ports

and Highways

and Road

Development

Submit proposals forwarded by the PMU to MOL ,arrange for funds,

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Agency / Unit Roles and Responsibilities

Ministry of Land

and Land

Development

Approval for the publications of relevant orders under LAA, approval

of RP

Divisional

Secretary Acquisition of lands, payment of statutory compensation, payment of

interest, consultation, information dissemination, GRC, and vesting

acquired land with the RDA

Grama Niladhari Delivery of notices under LAA to the DPP, consultation, facilitate

acquisition of alternate lands, preparation of advance tracing and

final plan by assisting the surveyors to identify the claimants,

Valuation

Department Preparation of condition reports of the properties to be acquired,

preparation of valuation reports,

Government

Printer Publication of gazette notifications relevant to land acquisition

Local Authority Approval of resettlement sites, housing plans

NGO Consultations, dissemination of information, assist DPs at title

determination inquiries, (Sec9). GRC, secure alternate lands, GRC,

external monitoring

Displaced Persons Help in planning of resettlement site development, IRP, Monitoring

Construction Supervision

Consultants

Planning, monitoring construction and resettlements

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CHAPTER 11 - MONITORING AND REPORTING

111. Resettlement monitoring means the collection, analysis, reporting and use of information on the progress of resettlement, based on the RP. Monitoring focuses on physical and financial targets and the delivery of entitlements to persons Displaced. Monitoring is usually conducted internally by the executing agency, sometimes with the assistance from external monitoring specialists. It is a requirement to submit monitoring report to ADB.

Aims and Objectives

112. Monitoring will be done by the PMU in relation to the activities detailed out in the RP and against the time frame indicated against each activity. In addition to recording the progress in compensation payment and other resettlement activity the EA will prepare monitoring report to ensure the implementation of the RP has produce desired outcome. Information gathered from the monitoring exercise will be subjected to review by the PMU and other relevant stake holders, take effective remedial measures to mitigate or solve the problems that need institutional interventions.

Method and approach to provide the Information

113. The collection of base line data for each indicator identified to measure the benefits for the target groups that will be affected by the project. Monitoring during project implementation particularly to inform the management about progress any discrepancies in the delivery, use, and immediate effects of these services. Feedback to management and actions taken to mitigate unexpected impacts. Management is required act upon the information and, together with affected communities or target groups, design and implement solutions to reduce the discrepancies.

Detailed Methodology

114. Field level monitoring will be done by the unit office of the PMU with the assistance of the DPs, GNs CBOs. The mechanisms to be used in field level monitoring Include (a) review of files, (b) informal sample survey of DPs, (c) key informant interviews, (d) in-depth case studies and (e) community public meetings

Key Indicators for Monitoring

115. Following set of key indicators will be used to conduct the monitoring

(a) Comparison of pre-/post- socioeconomic status

(b) restoration of income earning capacity

(c) development of kinship ties

(d) integration with the host villagers

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(e) access to education, water supply, and sanitation etc.

Reporting Requirements

116. Unit Office of the PMU will submit monthly progress reports on the following activities to the PMU. PMU will submit a consolidate progress report of all road projects to ESD, Steering Committee and Project Coordinating Committee monthly.

Number of Displaced persons category wise

Land acquisition with details of the stage of the process for e.g number of Sec2 notices issued.

Number of DP prepared number of Sec 38 (a) issued etc.

Number of DPs paid with statutory compensation

Number of Buildings taken over by PMU

Number of DPs resettled at RDA site

Number of self-relocated people

Number of vulnerable people Assisted by the PMU

Number of gender issues reported by the DPs

Number of gender issues solved

Number of DPs need income and livelihood restoration assistance

Number of DPs assisted under IRP

Number of GRC meetings held

Number of complaints received by the GRC

Number of grievances solved by the GRC

Provide guide lines for future resettlement policy making and planning from the lessons learned.

Computerized Management Information System (MIS) 119. All information regarding loss of assets (inventory of losses) of individual DPs, and socioeconomic information will be stored in a data base maintained by the PMU. Soft copies of such data will be given to ESD for them to maintain a centralized data base for all highway projects. A D atabase Manager will be recruited to store and maintain the database.

120. MIS will include the following data

Information of all losses suffered by individual DPs, the data will include the extent of land acquired, area of structures lost, number and type of trees lost, compensation paid according to category of losses, other entitlement

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MIS should be capable of generating monthly, quarterly and annual reports required for the management and the ADB

Table 5 Monitoring and Evaluation Indicators

Type Indicator Examples of Variables

Proc

ess

Indi

cato

r

Staffing No .of RDA staff employed functional wise

No. of surveyors & valuation officers available for

Training programmes held for the project staff

No of unit offices established

Consultation No of awareness meetings held with the stake holders

Participation No of training programmes held for the, officers

No of informative bulletins distributed

Grievance Resolution No of GRC established

No of complaints received and resolved

Out

put

Acquisition of Land Type and extent of private land acquired

Type and extent of state land acquired

Structures No .type and area of private structures acquired

No .type and area of state structures acquired

No. type and area of community structures acquired

Trees & Crops No and type of trees owned by private people acquired

No and type of trees owned by state agencies Acquired

Compensation & Rehabilitation

No of households Displaced according to type of losses

Ag .paid for a perch of land

Ag. paid for a sq.ft of buildings

Type ,number and total of allowances paid

No. of resettlement sites developed

No of houses constructed by DPs at resettlement sites

No of DPs constructed houses by themselves

Impa ct

indi

cat

or Household Earning

Capacity No. of DPs loss employment

No of DPs suffered loss of income from

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Type Indicator Examples of Variables

(a) agriculture

(b) Business

(c) No obtained loans from bank and other sources

(d) No. assisted by IRP

(e) No. employed by the project

Changes to Status of Women

Participation in Community Based activities

Loss of employment

Aggravation /facilitation of gender issues

Participation in project activities

Changes to status of Children

Changes in school attendance by gender wise

Employment in road project

No attending new schools, gender wise

Settlement & Population

Generation of new businesses ,Influx of population

Outsiders buying land in the near vicinity of the road project, increase in encroachers /squatters in state lands

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Annex 1: National Involuntary Resettlement Policy

(Approved by Cabinet Members of GOSL on 24.05.2001)

Rationale

1. Public and private sector development projects increasingly involve acquisition of land. People whose homes and lands are acquired then have to move elsewhere and resettle in locations that may be unfamiliar. In general resettlement has not been very successful and there are several recent examples in Sri Lanka where people have shown resistance to project that cause displacement. Among the significant consequences of resettlement has been impoverishment of affected persons due to landlessness, homelessness, joblessness, relatively higher morbidity, food insecurity, lack of access to common property and public services, and disruption of the existing social organization. International, regional and national experience with resettlement has generated considerable knowledge on the planning and implementation of involuntary resettlement and this experience if used effectively can ensure that adverse impacts of affected persons are fully addressed in terms to established policy objectives. 2. In Sri Lanka the Land Acquisition Act of 1950 as amended from time to time only provides for compensation for land, structures trees and crops. It does not require project executing (PEAs) to address key resettlement issues such as (a) exploring alternative project options that avoid or minimize impacts on people; (b) compensating those who do not have title to land; (c) consulting affected persons and hosts on resettlement option; (d) providing for successful social and economic integration of the affected persons and their hosts; and (e) full social and economic rehabilitation of the effected persons. 3. The National Environmental Act (NEA), No.47 of 1980, amended by Act No.56 of 1988, has some provisions relevant to involuntary settlement. The Minister has by gazette notification No.859/14 of 23 February 1995 determined the projects and undertaking for which Central Environmental Authority (CEA) approval in needed in terms of part IV C of the NEA. The schedule includes item 12, which refer to Involuntary Resettlement Exceeding 100 families, other than resettlement resulting from emergency situations. However, these provisions do not adequately address key resettlement issues mentioned in paragraph 2 above. 4. To ensure that persons affected by development projects are treated in a fair and equitable manner, and that they are not impoverished in the process, it is necessary that Sri Lanka adopts a National Involuntary Resettlement Policy (NIRP). Such a policy wood establishes the framework for project planning and implementation. Subsequently, it will be necessary to prepare guidelines on resettlement planning and implementation to be used by PEAs.

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5. People have moved voluntarily, mainly to the dry zone, starting from colonial days. These were state sponsored settlement programs aimed at developing and exploiting land resources in that region, while relieving on land in the wet zone. There are many commonalties in the objectives and i mplementation of voluntary and involuntary settlement and resettlement programs. 6. Nonetheless, the policy proposed here refers only to development-induced involuntary resettlement, where the option to stay behind does not exist. It does, however, also apply to cases where people do not have to be physically relocated.

Objectives of the Policy

Avoid, minimize and mitigate negative impacts of involuntary resettlement by facilitating the reestablishment of the affected persons on a p roductive and self-sustaining basis. The policy should also facilitate the development of the project-affected persons and the project.

Ensure that persons adversely affected by development projects are fully and promptly compensated and successfully resettled. The livelihoods of the displaced persons should be re-established and the standard of living proved.

Ensure that no impoverishment of people shall result as a consequence of compulsory land acquisition for development purpose by the state.

Assets adversely affected persons in dealing with psychological, cultural, social and other stresses caused by compulsory land acquisition.

Make all affected persons aware of processes available for the redress of grievances that are easily accessible and immediately responsive.

Have in a place consultative, transparent and ac countable involuntary resettlement process with a time frame agreed to by the PEA and the affected persons.

Scope

The policy will apply to all development-induced land acquisition or recovery of possession by the state.

A comprehensive resettlement plan will be required where 20 or more families are affected.

If less than 20 families are affected the policy still applies but a p lan can be prepared to a lesser level of detail.

The policy will apply to all projects regardless of source of funding. The policy will apply to all projects in the planning phase on the date this policy

comes in to effect, and all future projects

Policy Principles

Involuntary resettlement should be avoided or reduced as m uch as possible by reviewing to the projects as well as alternatives within the project.

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Where involuntary resettlement is unavoidable, affected persons should be assisted to re-established themselves and improve their quality of life.

Gender equality and equity should be ensure and adhered to throughout the policy.

Affected persons should be fully involved in the selections of relocation sites, livelihood compensation and development options at the earliest opportunity.

Replacement land should be an option for compensation in the case of loss of land; in the absence of replacement land cash compensation should be an option for all affected persons

Compensation for loss of land, structures, other assets and i ncome should be based on full replacement cost and should be paid promptly. This should include transaction costs.

Resettlement should be plans and i mplemented with full participation of the provincial and local authorities.

To assist those affected to be economically and socially integrated in to the host communities; participatory measures should be designed and implemented.

Common property resources and c ommunity and publ ic services should be provided to affected persons.

Resettlement should be planned as a development activity for the affected persons.

Affected persons who do not have documented title to land should receive fair and just treatment

Vulnerable groups should be identified and given appropriate assistance to substantially improve their living standards

PEAs should bear the full costs of compensation and resettlement.

Institutional Responsibilities

The Ministry of Land and Land D evelopment (MLD) will be r esponsible for the implementation of the NIRP

PEAs will be responsible for complying with all the requirements for planning and implementing resettlement according to the NIRP.

PEAs (like the Road Development Authority) that have significant resettlement in their projects will establish resettlement units with adequately trained staff

CEA will be responsible for the review of impacts and mitigating measures of projects involving involuntary resettlement.

CEAs capacity will be strengthened so that it could provide necessary guidance to public and private sector agencies undertaking projects that have involuntary resettlement impacts.

MLD will prepare regulation and g uidelines on i nvoluntary resettlement planning, implementation and monitoring.

MLD and C EA will conduct training courses in resettlement planning , implementation monitoring.

CEA will review and approve the resettlement plans prepared by PEAs, and make

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plans publicly available. MLD will draft amendment to the Land Acquisition Act in order to bring the law in

line with the NIRP Following consultation with stakeholders, MLD will submit a final draft of the

amended Land Acquisition Act for government approval. MLD will prepare the necessary implementation guidelines based on the amended

LAA. A steering committee will be formed comprising MLD, CEA, PEAs and other

relevant agencies to exchange experience on resettlement, and coordinate and oversee the implementation of the policy.

Monitoring and Evaluation

A system of internal monitoring should be established by PEAs to monitor implementation of resettlement plans, including budget, schedule, and delivery of entitlements, consultation, grievances and benefits.

PEAs should make adequate resources available for monitoring and evaluation. A further system of external monitoring and evaluation by an independent party

should be established to assess the overall outcome of resettlement activities. Monitoring and evaluation reports should be review by the PEA, CEA, and MLD

and action taken to make improvements where indicated. Affected persons and other stakeholders should be consulted in monitoring and

evaluation. Lessons thus learned from resettlement experiences should be used to improve

resettlement experiences should be used to improve resettlement policy and practice.

Summary of Institutional Responsibilities for Involuntary Resettlement

Function Responsibilities

Overall Policy Implementation

Ministry of Land and Land D evelopment (MLD)

Preparation (Planning) Project proponent (Can be contracted to consultants, universities, non-government organizations)

Review of Resettlement Plans (RPs)

Project approving agency (PAA) and Central Environmental Authority (CEA)

approval of RPs PAA and CEA

Implementation Project executing agency (PEA), divisional administration, provincial

Monitoring PEA, with review by CEA and MLD

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Evaluation Independent organization on behalf of MLD, PEA, and CEA

7. Definitions of Terms Used

Affected Person - Person affected by changes to use of land, water or other resources caused by development projects

Compensation - cash or payment in kind made to affected persons to replace assets, resources or income

Emergency Situation

- natural disasters, civil and political conflict situations

Expropriation - government taking possession of property or changing property rights in order to execute or facilitate development projects

Entitlements - a variety of measures including compensation, income restoration and interim support, transfer assistance, relocation and other benefits that are due to affected persons, depending on the nature of their losses, to improve their economic and social base

Gender Equity - Recognition of both genders in the provision of entitlements, treatment and other measurement under the resettlement plan

Host population - households and communities residing in or near the area to which affected persons are to be relocated

Income restoration

- re-establishing income sources and livelihoods of persons affected

Involuntary resettlement

- unavoidable displacement of people arising from development projects that creates the need for rebuilding their livelihoods, incomes and asset bases in another location

Rehabilitation - re-establishing and improving incomes, livelihood, living, and social systems

Relocation - moving affected persons and their moveable assets and rebuilding housing, structures, improvements, to land, and public infrastructure in another location

Replacement cost

- the level of valuation for expropriated property sufficient to actually replace lost assets, or to acquire substitutes of equal value or comparable productivity or use; transaction costs are to be included

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Resettlement plan

- a time-bound action plan with budget setting out resettlement strategy, objectives, options, entitlement, actions, approvals, responsibilities, monitoring and evaluation.

Resettlement budget

- a detailed breakdown of all the costs of a resettlement plan phased over the implementation period

Resettlement effects

- loss of physical and non-physical assets including homes, communities, productive land, income earning assets and sources, subsistence, cultural sites, social structures, networks and ties, cultural identity and mutual help mechanisms.

Settlement

- voluntary movement of people to a new site where they re-establish their livelihoods as in the case of the Mahaweli Scheme

Social preparation

- process of consultation with affected persons undertaken before key resettlement decisions are made; measures to build their capacity to deal with resettlement, taking into account existing and cultural institutions

Vulnerable groups

- distinct groups of people who might suffer disproportionately from resettlement effects such as the old, the young, the handicapped, the poor, isolated group and single parent households

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Annex 2: Census Survey Questionnaire

In order to collect information and data for the preparation of the Resettlement Plans, the consultants in 2007 have used the attached questionnaire. Obtaining socioeconomic data and assessment of land acquisition impacts were assessed on the basis of the information derived out of these questionnaire.

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Documents

SRI: Additional Financing for National Highway Sector Project