Ensuring social “safeguards” in Infrastructure Projects 24 April 2019 Bam Baahadur Thapa Social Safeguard Expert

Contents Legal Framework for Social Safeguards Development partners' safeguard policy Policy gaps Stakeholder analysis and Communication strategies

The Constitution of Nepal 2072 (2015 AD). Legal framework The Constitution of Nepal 2072 (2015 AD). Property Rights as Fundamental Rights Every citizen shall have the right to acquire, own, sell, dispose of and deal with property. State acquires or establishes the rights over individuals’ property for public welfare, the state will compensate for the loss of property. The process and the procedures shall be as prescribed by the law.

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Legal Framework Land Acquisition Act 1977 (2034 BS) Land - land belonging to any person, and walls, building, trees, etc., permanently installed thereon. Govt. can acquire land Where ? -- any place How much ? -- any quantity How ? – by giving compensation Condition – public purpose for operation of any development project initiated by govt. institutions

पूर्वाधार विकास आयोजनाका लागि जग्गा प्राप्ति, पुनर्वास तथा पुनर्स्थापना सम्बन्धी नीति २०७१ आयोजनाको अवधारणा तय गर्ने चरणमानै निम्न वर्गीकरणका आधारमा अस्वैच्छिक विस्थापनको जोखिम कम भएका आयोजना कार्यानवयनको विकल्प तयार गरिनेछ : उच्च जोखिम: हिमाली क्षेत्रमा ५०, पहाडी क्षेत्रमा ७५ र तराईमा १०० वा सो भन्दा बढी परिवारहरु भौतिक वा आर्थिक रूपले विस्थापित हुने आयोजना मध्यम जोखिम: हिमाली क्षेत्रमा ५०, पहाडी क्षेत्रमा ७५ र तराईमा १०० वा सो भन्दा कम परिवारहरु भौतिक वा आर्थिक रूपले विस्थापित हुने आयोजना न्यून जोखिम: आर्थिक विस्थापन मात्र हुने तर भौतिक विस्थापन वा प्रभावित परिवारको उत्पादनशील जायजेथाको १० प्रतिशत भन्दा बढी ह्रास नहुने आयोजना सामाजिक प्रभाव मूल्याङ्कन प्रतिवेदनमा देहायका विवरणहरु समावेश गर्ने: नापी नक्सा स्वामित्वको लगत, जग्गाको उपयोगको अवस्था, जग्गामा निर्मित संरचनाहरु भौतिक र आर्थिक दुवै रूपमा विस्थापित हुने परिवार को लगत आयोजनाका लागि प्राप्ति गर्न प्रस्ताव गरिएको घर जग्गा को परिमाण र विकल्पको विश्लेषण र आयोजनाको लागतमा पार्न सक्ने असरको लेखाजोखा प्रभावित समुदायको सामाजिक, आर्थिक, साँस्कृतिक ढाँचाको विवरण सामाजिक प्रभाव को तथ्याङ्क संकलन संपन्न भएको मितिमा सूचना जारी गरी सोही मितिलाई तथ्याङ्क संकलनको अन्तिम आधार मिति मानिने छ।

Social Safeguard To avoid involuntary resettlement wherever possible To minimize involuntary resettlement by exploring project and design alternatives; To enhance, or at least restore, the livelihood of all displaced persons in real terms relative to the pre-project levels; and To improve the standards of living of the displaced poor and other vulnerable groups

ADB’s Safeguards Policy Statement (SPS), 2009 Safeguard: “Do No Harm” ADB policies especially for “do no harm” Uneven Impact Different Magnitude of effect/impact Safeguard includes Envt., resettlement and IP (three Safeguard) Avoid, minimize, and mitigate loss and impact Vulnerability Only Compensation is not sufficient Livelihood and income restoration

Objective of ADB’s SPS Avoid adverse impact of projects on the Evt., and affected people where possible; Minimize, mitigate, and/or compensate for adverse project impact on the Evt. and affected people when avoidance is not possible anD Help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage Evt. and social risks

Scope of application The SPS applies to all ADB-financed and/or ADB-administered sovereign and non sovereign projects and components, no matter whether they are financed by ADB, the borrower/client, or co-financiers. ADB will not finance projects that do not comply with the requirement laid out in the SPS. Nor it will finance projects that do not comply with the host country’s laws and regulations, including those laws for which the implementing host country has obligations under international law. The SPS also applies when the land acquisition process has begun or been completed and/or population has already been moved in anticipation of ADB support.

IR Triggers under SPS Involuntary resettlement safeguards covers both physical and economic displacement as a result of Involuntary acquisition of land, or Involuntary restrictions on land use or on access to legally designed parks and protected areas. Displacement can be full or partial, permanent or temporary. physical displacement refers to loss of land, assets, access to assets. income sources, or means of livelihoods. Restrictions on land use on access to legally designated parks and protected areas means the imposition of involuntary restrictions on the use of resources on people who live around or within such areas.

ADB’s Three safeguards requirements Environment Safeguard Involuntary Resettlement Safeguard Indigenous People Safeguard

Involuntary Resettlement Safeguard Involuntary Resettlement (IR). When the displaced persons have no right to refuse the land acquisition by the state that results in their displacement. This occurs when land is acquired through- i) evoking the eminent domain power of the state ii) failure of the negotiation for land price. B. Voluntary Resettlement. -The important principles of voluntary resettlement are informed, consent, and power of choice

ADB’s IR principles

IR Principle 1- screening Screen the project early on to identify past, present, and future involuntary resettlement Impact and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specially related to resettlement impacts

Assessment of Social Impact Identification of past, present, and future potential social impacts, based on baseline data analysis; an inventory of displaced persons and their assets; an assessment of the displaced persons’ income and livelihoods; and gender-disaggregated information pertaining to the economic and socio cultural conditions of the displaced persons. data

Categorization of Impacts Category Type of impact and need of RP Category A Sub-project expected to have significant impact that require an Resettlement Plan (ADB-supported project are considered significant if 200 or more persons will be physically displaced from home or lose 10% or more of their productive or income-generating assets). Category B Sub-project expected to have limited impacts that require specific action in resettlement plans Category C Sub-project not expected to have impacts and therefore, do not require special provision.

IR Principle 2- Consultation Carry out Meaningful consultations with affected persons, host communalities, and concerned nongovernment organizations. Inform all displaced persons of their entitlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the need 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 affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risk are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

IR Principle 3- Restoration of Livelihoods Improve, or at least restore, the livelihood of all displaced persons through Land-based resettlement strategies when affected livelihood are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, Prompt replacement of assets with to assets of equal of higher value. Prompt compensation at full replacement cost for assets that cannot be restored, and Additional revenues and services through benefits sharing schemes where possible

IR Principle 4- Provide Assistances Provide physically and economically displaced persons with needed assistance, including the following: If there is relocation, secured tenure to relocation and, 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. Transitional support and development assistance, such as land development, credit facilities, trainings, or employment opportunities; and Civic infrastructure and community services, as required

IR Principle 5- Vulnerable groups Improve the standards of living of 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.

IR Principle 6- Negotiated Settlement 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

IR Principle 7- Persons without titles 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.

IR Principle 8- Resettlement Plan Prepare a resettlement plan elaborating on displaced person's entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bund implementation schedule

IR Principle 9-Disclosure 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 affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

IR Principle 10- As a integral part of project Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of projects’ 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

IR Principle 11-Compensation Payment Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision through project implementation

IR Principle 12- Monitoring Monitor and assess resettlement outcomes, their impacts on the standards of living of displacement persons, and whether the objectives of the resettlement plan have been achieved by taking into account the basiline conditions and the results of resettlement monitoring. Disclose monitoring reports

Gaps in GoN’s Safeguard Policy Framework No additional support provision for severe impact: loss of more than 10% of the total landholdings and income Do not considers squatters/ encroachers/ nontitle landholders for compensation of their investment (structures, business) on land Principle of replacement cost for valuation of affected assets is not explicitly mentioned and followed Cut-off date for qualifying affected persons

Gaps in GoN’s Safeguard Policy Framework Vulnerability and no provision of additional support and assistance for project affected Vulnerable groups No standalone policy on Indigenous Peoples and other vulnerable communities to safeguard them.

Identify all stakeholders Identify stakeholders needs and interest Classify group of interest (stakeholder mapping) Identify strength, access, power, resources of the group Identify areas of conflict (project Vs stakeholder, stakeholder Vs stakeholder) Prioritize, reconcile and balance stakeholder Align stakeholders need with project goal and action 3

Unpredictable but manageable Power Dynamism Matrix Dynamism Low High Power A Fewer Problem B Unpredictable but manageable C Powerful but predictable D Greatest Danger or Opportunities

Understanding stakeholders

Power Interest Matrix Level of Interest Low High Power A Minimal Effort B Keep Informed C Satisfied D Key Players

Communication strategy

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