Prepared by: GHD Pty Ltd., Australia in assn with Integrated Consultants Nepal (ICON) Pvt. Lt. Nepal

Transcription

1 Technical Assistance Consultant s Report Project Number: December 2006 NEPAL: Kathmandu Valley Water Distribution, Sewerage, and Urban Development Project (Financed by: Technical Assistance Special Fund, Government of Denmark and the Cooperation Fund for the Water Sector) Prepared by: GHD Pty Ltd., Australia in assn with Integrated Consultants Nepal (ICON) Pvt. Lt. Nepal For the Ministry of Physical Planning and Works This consultant s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project s design.

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3 TA 4893-NEP APPENDIX 8 SOCIAL SAFEGUARDS A. Summary Poverty Reduction and Social Strategy B. Management Plan for Temporary Business Impacts during Pipeline construction C. Implementation Progress of Resettlement Action Plan Under L1820 D. Gender Action Plan

4 Section A - Summary Poverty Reduction and Social Strategy A. Linkage to the Country Poverty Analysis Is the sector identified as a national priority in country poverty analysis? Yes No Is the sector identified as a national priority in country poverty partnership agreement? Yes No Contribution of the sector to reduce poverty: About one-third population of the urban population is poor (Willingness to pay survey, 2001). The incidence of poverty is higher in the rural areas, but degree of poverty of the urban poor in Kathmandu urban areas is greater. The number of poor population is growing at a high rate due to rapid rural urban migration. The increasing number of population in the Kathmandu urban areas causes further stress on the already inadequate basic urban services and facilities. Squatters living in the Kathmandu Metro area do not have water service connection. Only 5% of the households (HHs) have a water service connection. In slum areas, few HHs have water source connections. According to LICSU, KUKL June 2008, about 66% of the HHs of squatters and slums have access to a water supply connection of KUKL (Bhaktapur Municipality-32 %; Madhyapur Thimi Municipality- 85%; Lalitpur Municipality- 62%; Kathmandu Metro 58% and Kirtipur Municipality- 64%). The rest of the poor collect water from vendors, hand tube wells, tap stands, government water tankers etc. Generally, there is no proper drainage system in the areas where the urban poor live. The majority of households are forced to use unsanitary defecation systems. Due to lack of drainage and sanitation, unhygienic conditions and bad smell prevails in these areas. According to the Ministry of Health, the most commonly top ten diseases found in Kathmandu valley are skin disease, diarrhoea, acute respiratory disease, pyrexia, gastro- enteritis, ear infection, bronchitis, abdominal pain and anaemia. Most of these diseases and health problems are caused due to un-safe water, hygiene and sanitation. The Government of Nepal has given emphasis on supplying safe water and providing sanitation services in different plans, policies, acts and strategies. In the project, it is expected all the slums and squatters are expected to receive a greatly improved water supply service. It is expected that the project will significantly reduce the water collection time for women, water costs, health care cost, morbidity, malnutrition and improve hygienic condition of the localities where poor people live. Therefore this project will contribute significantly toward poverty reduction. B. Poverty Analysis What type of poverty analysis is needed? The project targets the poor in terms of the following: improvements to the water distribution network, community water taps, shared standpipes on payment basis, construction of water storage tanks etc. Before starting the project a baseline survey needs to be conducted to identify the local issues related to access of water supply, drainage, sanitation etc. in order to access the benchmark situation of the poor. After the project, an impact survey will be conducted to examine the outcome of the project on the poor particularly on women. To support urban poor, the government has established A low Income Consumer Support Unit (LICSU) at KUKL in March It has already initiated the construction of storage tanks, new tap stands and rehabilitation of tap stands. ADB TA 4776 (NEP) Enabling the Private Sector to Undertake Poverty-Focused Water Distribution and Strengthening of Institutional Reforms in Kathmandu Valley Project worked extensively in devising policies and approaches for providing / extending services to the low income groups or urban poor. The policy recommendations made are very relevant and its adoption and consolidation in the overall operational strategy of KUKL is essential. Appendix 8 - Social Safeguards Section A Page 1

5 C. Participation Process Is there a stakeholder analysis? Yes No A considerable number of stakeholders meeting have been conducted with the policy makers of the MPPW and Departments, KUKL personnel, KUKL Board of Directors, NGOs, INGOs. The consultations with different stakeholders were done to ensure their involvement as part of the project development and design. Different workshops were conducted with the stakeholders to share the finding of the study. Is there a participation strategy? Yes No During the socio-economic household survey in a representative water supply distribution network improvement (DNI) area, the households were informed about the project activities in coming days. The communities and businesses were fully informed about the likely negative impacts during project implementation activities and benefit outcomes from the project. Future participatory activities will be done through NGOs and community based organizations. Formation of Local Community groups and water user groups will inform the local people and monitor the project activities. The NGO and LCG will assist in identification of disadvantaged groups and households including women headed households. D. Gender and Development It is evident that the lack of access to piped water, particularly in the low income areas of Kathmandu valley, makes women s live miserable. It is also evident that women are the main collectors, transporters, users and mangers of domestic water use. It has been found that women were very enthusiastic about the project activities e.g. distribution modality, access and quality of water. While forming the local community groups, their participation should be ensured. Their involvement will assist in identifying the vulnerable groups, including women headed households. It is suggested that they should be made responsible in locating construction of water points and water related issues. The disaggregated gender data generated under the monitoring and evaluation system will identify and record the project impacts on gender. Has an output been prepared? Yes No A draft gender strategy and gender action plan has been prepared to address the gender issues and to ensure women benefit equally from the project. Special attention is given during resettlement and compensation, employment, decision making process, and creation of enabling environment e.g. formation of women water user groups. E. Social Safeguards and other Social Risks Item Significant/Not Significant/None Strategy to address Issues Plan Required Resettlement Affordability Significant Not Significant None Significant Not Significant None The laying of transmission mains and sewerage will be within public / government land. It is expected that local businesses and the hawkers might be temporarily disrupted due to the project. A management plan for temporary business impacts during pipeline construction has been prepared to compensate those losses occurring during construction. The improvements in water availability and wastewater management will reduce public health risks as well as time saving which can be used in other productive activities, though some increase in the tariff is likely. Full Short None Yes No Appendix 8 - Social Safeguards Section A Page 2

6 Labor Significant Not Significant None There will be no job losses due to the project. Instead the project will generate employment opportunities for the local communities and poor people during laying and rehabilitation of pipelines and construction of water reservoirs. The project will ensure that there will be equal work for equal pay irrespective of gender, and not use child labor. Yes No Indigenous peoples Significant Not Significant None Indigenous people are living in the urban areas of Kathmandu valley. They maintain no distinctive customs or practices and share similar characteristics as other groups. However, they will not be impacted differently with similar characteristics of other groups and will benefit equally from the project. Yes No Other Risks and /or Vulnerabilities Significant Not Significant None No other risks or vulnerabilities have been identified in this project. Yes No Appendix 8 - Social Safeguards Section A Page 3

7 SECTION B Kathmandu Valley Water Supply and Wastewater System Improvement. MANAGEMENT PLAN FOR TEMPORARY BUSINESS IMPACTS DURING PIPELINE CONSTRUCTION Contents List of Abbreviations Definition iv v Contents 1.0 Project Description Project description Project components Land acquisition and compensation under the Project Methods of Study Research methods Hiring of enumerators Scope of Land Acquisition and Resettlement Scope of land acquisition Project impacts Mitigation measures Avoiding resettlement impacts 5 Page 3.0 Socioeconomic Information and Profile Socio-economic Profile of the Project area Social Profile Economic Profile Slums and Squatters Settlements Socio-economic Profile of DNI pilot area Social profile Economic profile Gender status Household opinion on water supply Sewerage and sanitation Information Disclosure, Consultation and Participation Information disclosure Squatters and encroachers Households of DNI area Business/shops of DNI area Consultations Community Project Stakeholders 20 Appendix 8 - Social Safeguards Section B Page i

8 5.0 Grievance Redress Mechanisms Government policy for grievance redress Proposed grievance redress mechanism Grievance redress Grievance redress procedure Local Consultative Group Entitlements, Assistance and Benefits Entitlement policy Entitlement matrix Resettlement Budget and Financing Plan Business disruption allowance Implementation and management Monitoring Contingencies Total cost estimate Institutional Arrangements Organizational framework Role of compensation unit Role of local consultative groups/committee During planning & management During implementation Role of community awareness and participation consultant Design supervision consultant Procedure for resettlement planning Implementation Schedule Implementation schedule Monitoring and Reporting Monitoring Reporting 37 REFERENCES 38 Appendix 8 - Social Safeguards Section B Page ii

9 LIST OF TABLES Table 1: Involuntary Impacts on the Project Components 2 Table 2: Household Profile in Kathmandu Valley 7 Table 3: Households in Non-Farm Economic Activities in Kathmandu Valley 9 Table 4: Kathmandu valley Development Indicators 9 Table 5: Slums and Squatters Settlements in Kathmandu Valley 10 Table 6: Demographic Features of the Sampled Households 12 Table 7: Economic Activities of the Household s Members 12 Table 8: Reported Source of Income of the Households 15 Table 9: Reported Expenditure by Type of the Households 15 Table 10: Households Opinion Regarding the Water Supply of KUKL 17 Table 11: Summary of Household Water use Survey in Kathmandu Valley 19 Table 12: Community Consultation related to MWSP Sub-Project Table 13: Meeting, Workshops and Focus Group Discussion Held 21 Table 14: Entitlement Matrix 26 Table 15: Summary of Compensation Costs 29 Table 16: Recommended Table Format for the Record of Affected Business 33 Table 17: Procedure for resettlement planning 34 Table 18: Implementation Schedule of the Resettlement Plan (RP) 36 LIST OF ANNEX Annex 1: Questionnaire for Socio-Economic Household Survey A1-1 Annex 2: Sample Questionnaire for Business Survey A2-1 Annex 3: Socioeconomic Profile of DNI Pilot Area A3-1 Annex 4: Daily Average Profit of the Business Shops by Categories in DNI Pilot Area A4-1 Annex 5: Photographs of Shops and Business Complex in DNI Pilot Area A5-1 Annex 6: Receipt of Compensation Payment A6-1 LIST OF MAPS Map 1: Proposed Water Supply System in the Valley 2 Map 2: Proposed Interceptors and Centralized WWTP Works 3 Map 3: General View of the DNI Pilot area 11 LIST OF FIGURES Fig. 1: Grievance Redress Mechanism 24 Fig. 2: Organizational Framework for Resettlement Activities 31 Appendix 8 - Social Safeguards Section B Page iii

10 LIST OF ABBREVIATIONS ADB AP(S) BDS CAPC CBS CDC CDO CIRT DAO DDC DNI DSC EA GoN HHs IA INGO KUKL KVWSMB LPCD MPPW MWSP MWSDB NA NGO NO. PAP(s) PD PID PPTA RP RS R&R SAPI SPAF SU VDC Asian Development Bank Affected Person (Persons) Bulk Distribution System Community Awareness and Participation Consultant Central Bureau of Statistics Compensation Determination Committee Chief District Officer Community Issues Resolution Team District Administration Office District Development Council Distribution Network Improvement Design and Supervising Consultant Executing Agency Government of Nepal Households Implementing Agency International Non- governmental Organization Kathmandu Upatyaka Khanepani Limited Kathmandu Valley Water Supply Management Board Liter per Capita per Day Ministry of Physical Planning and Works Melamchi Water Supply Project Melamchi Water Supply Development Board Not Available/Not Answered Non-governmental Organization Number Project Affected Family (Families) Project Director, PID Project Implementation Directorate Project Preparatory Technical Assistance Resettlement Plan Resettlement Specialist Resettlement and Rehabilitation Special Assistance for Project Implementation Severely Project Affected Family Safeguard Unit Village Development Council Appendix 8 - Social Safeguards Section B Page iv

11 DEFINITIONS Compensation: The payment in cash or kind, which affected person is entitled to in order to replace in assets, resources or income lost due to the project. All compensations are based on the replacement cost. Project: Project means Kathmandu Valley Water Supply & Wastewater System Improvement. Entitled Person (EP): Any person physically or economically displaced as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. In this project, any person who loses the business due to the project is entitled to compensation under the Entitlement Framework. Cut-off Date: The date of census survey to count the APs and their affected business and assets. Project Affected Person (PAP): Any person including encroachers/squatters, households, business affected by the project through the acquisition of land or other assets or disruption in business irrespective of legal or ownership title. This includes any person whose rights, standard of living, subsistence and income-generating capacity are adversely affected because of the disruption in the business or acquisition of assets, whether full/partial, or permanent/temporary. Rehabilitation: The measures taken to mitigate social impacts, including compensation, resettlement and rehabilitation allowances where required. Titleholder: The person in whose name the project-affected business, land and/or building business is registered and who is authorized to receive the compensation granted for the loss of business or acquisition of the land. Tenant: A person occupying or utilizing buildings of a titleholder/house owner on rent. Appendix 8 - Social Safeguards Section B Page v

12 MANAGEMENT PLAN FOR TEMPORARY BUSINESS IMPACTS DURING PIPELINE CONSTRUCTION CHAPTER 1: PROJECT DESCRIPTION 1.1 Project Background 1. Water supply and wastewater management in the Kathmandu Valley have become great problems. Political un-rest and insurgence in the country in the past 15 years has caused a high rate of immigration of people into the valley from other regions. With the limited availability of water resources within the valley, the water supply system has not been able to meet the demand resulting from the rapid urbanization and expansion of settlements. In parallel, the existing wastewater network has not been maintained or expanded to serve the spreading urban areas and increased population. This has resulted in untreated sewage being discharged directly into local watercourses. The rivers have become open sewers presenting severe public health risks, in particular to the urban poor. In order to assist the Government of Nepal (GoN) to solve these problems, ADB provided 3 loans for the Melamchi Water Supply Project and Kathmandu Valley Water Service Sector Development Programs for infrastructure investment and institutional reforms. The PPTA 4893-NEP has prepared a project loan to continue the GoN urban infrastructure development endeavours and to supplement the on-going Loan 1820-NEP: Melamchi Water Supply Project (MWSP). 1.2 Project Components (See Map 1 &2) 2. The proposed project includes i) Water Supply Bulk Distribution System (BDS), ii) Distribution Network Improvement (DNI), and iii) Wastewater System Improvement (WSI). (i) Bulk Distribution System (BDS): The BDS includes the installation of about 35 km water mains ranging in diameter from 600mm to 1500 mm diameter along the Kathmandu Ring Road and along major city road corridors. These water mains will feed 5 existing service reservoirs and 5 new service reservoirs; the latter to be constructed under the project at Arubari, Mahankal Chaur II, Bansbari, Balaju and Khumaltar. The service reservoirs provide water to the distribution network. The outcome at end of the project, in 2016, will be an estimated 720,000 population of the Kathmandu Valley receiving a greatly improved water supply service, either directly or indirectly. These outcomes assume the successful implementation of the MWSP and the diversion of water from the Melamchi Valley. (ii) Distribution Network Improvement (DNI): Under the project, improvement of the water supply distribution network is planned for 10 sub-zone service areas in Kathmandu and Patan. The DNI work will improve the water supply service by ensuring an adequate supply of potable water in compliance with the KUKL operator license. The DNI covers an area of about 1,820 hectares and will directly benefit approximately 470,000 people. The project includes the installation of over 400 km of water distribution pipes ranging in diameter from 50 mm to 600 mm. (iii) Wastewater System Improvement (WSI): This component includes the rehabilitation of the existing wastewater system and expansion of the wastewater collection network in un-served areas. The component also includes treatment process upgrading of existing wastewater treatment plants to cater for increased drainage catchments and respective populations. Appendix 8 - Social Safeguards Section B Page 1

13 3. Table 1 shows the involuntary impacts on the components of the proposed project: Table 1: Involuntary Impacts on the Project Components Components Public / Private Land Involuntary Impacts (Y/N) Bulk Distribution System (BDS) Distribution Network Improvement (DNI) Wastewater System Improvement (WSI) Public land Public land Public land and existing wastewater system No (private land acquired under L1820) 4. The proposed water supply and wastewater capital investments under the project are indicated in Maps 1 and 2. Map1: Proposed Water Supply System Improvements No No Appendix 8 - Social Safeguards Section B Page 2

14 Map 2: Proposed Interceptors and Centralized Wastewater Treatment Plants 1.3 Land Acquisition and Compensation under L1820- NEP (SF) 5. The proposed Kathmandu Valley Water Supply and Wastewater System Improvement project includes 5 new reservoirs at Arubari, Mahankal Chaur II, Balaju, Bansbari and Khumaltar to be fed by the water supply transmission main from Sundarijal to Gokarna to be constructed under Loan 1820-NEP Subproject-2. The land for the service reservoirs and pipeline has been acquired under Loan 1820 NEP, although some compensation payments are still to be paid. About 22 owners (30 parcels) of the reservoirs site and pipelines routes have not yet collected their compensation (See Section C). The Project, however, will only result in temporary disruption to businesses and hawkers during construction in the congested city areas, for whom appropriate compensation has been allowed for. 1.4 Methods of Study 5. To obtain an understanding of the types of assistance or compensation for temporary disruption to businesses and hawkers that would be required for the project, community and business surveys were undertaken. The sample areas chosen included the pilot DNI area being designed under TA 4893 which represented a typical city zone integrating both residential and business properties. Appendix 8 - Social Safeguards Section B Page 3

15 1.4.1 Research Methods 6. For carrying out the community and business surveys two questionnaires (Annexes B-1 and B-2) were used at household level which contained structured questions for the generation of the desired data. The survey was conducted from 18 to 25 November Hiring of Enumerators 7. Four enumerators (2 male, 2 female) were recruited who had previously worked in conducting the Water Use Survey in Kathmandu Valley, with the University of Tokyo (also under TA 4893-NEP). The objective of the second survey was different to the water-use survey, so the enumerators were given one full day orientation about the project objectives and the information required from the surveys. Further, a role play was organized between the enumerators to check the questionnaire accuracy. Some contents and sequence in the questionnaire was changed as a result of the role play. Sample size of the survey (a) Household / Community Survey 8. A list of the water supply customers with their identification numbers were collected from the KUKL branch office at Mahankal Chaur. A total of 167 households were randomly selected from the list of 2,000 households with water meters and 52 households selected randomly from those who did not; a total of 219 households. Survey households were also selected from different settlements of varying socio-economic status to provide a good representation of the whole area. 9. The household water meter data included the consumer numbers, area numbers and the name of the settlement. In order to identify the sampled household for interview, two water meter readers, who knew the area well, also assisted with the survey. When the selected house was locked or the occupier not available to answer the questionnaire, the enumerator and the meter reader tried the next adjoining house. (b) Business / Shops Survey 10. A survey of businesses was undertaken in December There were about 900 different categories of shops and 60 hawkers in the DNI sample area. Most shops were concentrated in the main road areas, whereas the hawkers were found mostly around busy road junctions. A total of 55 shops of 33 different types and 12 hawkers of 6 different types were randomly interviewed. In selecting the shops to be interviewed, different types of shops such as general stores, groceries, tea shops were chosen. However, the shop keepers were usually hesitant in providing information on daily turn-over or profit from their business. The questionnaire used for interviewing the shopkeepers and hawkers is provided in Annex B-2. The basic objective of the survey was to determine the daily income from different types of business and hawkers. This information was then used to estimate the compensation cost in case of disruption to business caused by road closures during laying pipes in the DoR and Municipality roads of the project area. Appendix 8 - Social Safeguards Section B Page 4

16 CHAPTER 2: SCOPE OF LAND ACQUISITION AND RESETTLEMENT 2.1 Scope of Land Acquisition 11. In the Project, there will be no acquisition of land. However, the laying of pipes for the BDS, DNI and WSI will have social impacts like temporary disruption to businesses and hawkers, for which appropriate mitigation measures have been developed. The socioeconomic survey of the households in DNI pilot area clearly indicates the socio-economic status of the project area and the business survey has identified the type of merchandise and their average daily profit from businesses. 2.2 Project Impacts 12. There will be no displacement of people, other than temporary relocation of hawkers and mobile vendors during construction. The Project falls under Category C, as approved by ADB. However, during the construction phase there will be temporary inconveniences such as increased vehicle movements resulting in dust, noise, waste disposal, particularly to residents and the pedestrians of the immediate vicinity of the work. About 900 shops and 60 hawkers were counted in DNI pilot area. It is estimated that about 30% of shops and hawkers could be temporarily disrupted in one way or another during the construction period. On this basis it is estimated for the whole of the project area of nearly 1,800 Ha. up to 5,000 small to medium sized businesses or shops and over 300 street hawkers or vendors could be temporarily affected. 2.2 Mitigation Measures 13. Identification of the individual businesses and hawkers that might be temporarily affected by the proposed work cannot be determined until the detail design of the components has been completed. Detail design will minimize the likely temporary disruption by using the wider streets for the larger pipelines and through the use of no-dig technology where practical. Temporary impacts to businesses are to be avoided and/or mitigated by adhering to the Environmental Management Plans which provides for good construction practices including continued access for customers (e.g., planks, safe pedestrian environment, etc.), increasing the number workers to expedite works in these areas, temporarily shifting mobile vendors across the street (or to suitable alternative location) for the duration of construction, etc. Hawkers will be allowed to return to their previous sites after the construction period. Contractors will be required to assist hawkers and mobile vendors in physically shifting to new locations, including providing them the use of project trucks. These costs are to be included as part of the civil works contract. During construction, signs will be posted at the construction site indicating contact numbers for any grievances or for information on the project. Businesses on fully closed roads will be surveyed and compensated for the amount of loss before work commences. As full closure of business is not expected, and business operations will not be entirely impact with continued pedestrian access, the compensation will be calculated at the percent of expected business loss due to project (this could be 10%, 20%, 50%, etc.) Avoiding Resettlement Impact 14. The project has avoided involuntary resettlement and the acquisition of private land, residential and business houses and other private assets. All proposed for BDS, DNI and WSI pipelines as well for the construction of service reservoirs and wastewater treatment plants will be in existing roads or on secure government land. Appendix 8 - Social Safeguards Section B Page 5

17 CHAPTER 3: SOCIOECONOMIC INFORMATION AND PROFILE 3.1 Socioeconomic Profile of the Project Area Social Profile Demography 15. The Kathmandu Valley includes the 3 districts of Kathmandu, Lalitpur and Bhaktapur. These include 1 Metropolitan city and 4 Municipalities and 38 VDCs. Kathmandu Metropolitan area has the highest population and households followed by Lalitpur and Bhaktapur municipalities. Table 2 summarizes the distribution of gender and households and the literacy rate of these urban areas in the Kathmandu Valley. Table 2: Household Profile in Kathmandu Valley Metro/Sub-metro/ Municipality & VDCs covered Kathmandu Metro & VDCs Kirtipur Municipality &VDCs Bhaktapur Municipality & VDCs Madhyapur Thimi Municipality Population Male Female Total Total HHs Average size of HHs Literacy rate 470, , , , ,158 31,359 65,517 14, ,312 58, ,324 20, ,747 23,004 47,751 9, Lalitpur Sub- Metro & VDCs 116, , ,832 47, Source: Compiled from Census 2001, CBS Social Classification 16. According to Census 2001, the majority of the people living in the Valley are Hindus (76%) followed by Buddhist (21%). The percentage of other religions living in the valley is minimal. The households are divided into different ethnic groups such as Newar, Brahmin, Chettri, Tamang, Magar. Newar are the prominent inhabitants followed by Brahmin, Chettri, Tamang, and Magar. These ethnic groups are not at the same level of socio-economic development. In the Kathmandu Valley, Newar are termed as an advanced indigenous people group. This group comprise about 41% of the valley population. Besides Newar, Brahmin (18%), and Chhetri (15%) are the major ethnic groups. Similarly, Tamang constitute about 6% and Magar hold 3% of the total population of the valley. Age. 17. The age group between 15 to 44 years (economically active) constitute about 56% of the valley population. The other main age group is between 5 to 14 years. Only about 5% of the population are over 60 years old. There are no significant differences in the percentage of age wise distribution in KUKL service areas. Health. 18. The number of health facilities owned by the government or provided by NGOs / INGOs and the private sector is relatively better in Kathmandu than in other districts. More health institutions are available in Kathmandu than in Lalitpur and Bhaktapur district. However, the population served by the number of health institutions in Kathmandu is less Appendix 8 - Social Safeguards Section B Page 6

18 (1:9,574) than in Bhaktapur (1:5,637) or Lalitpur (1:4,119). It shows that the number of health institutions is low in comparison to the size of population in Kathmandu. Education 19. The Kathmandu Valley has long been considered the centre for higher education in Nepal. In 2007, there were 6,106 high school level and 474 higher secondary, college and university level education institutions. The number of students enrolled during the period at high school level and higher education level were 573,779 and 156,828 respectively Economic Profile Employment 20. The economy of the Kathmandu Valley is based on trade, commerce and manufacturing industries like carpets and garments. Other economic sectors are agriculture, education, transport, hotels and restaurants. Tourism is also a key component of the valley s economy. However, in the rural areas, the economy is still based on agriculture. Trade and Commerce 21. Kathmandu Valley has developed as a centre of trade links with India and Tibet (China). According to the Economic Survey 2008/09, in the fiscal year 2007/08, Nepal exported 65% of its goods to India and 35% to third countries like USA, U.K, Italy, Germany, Canada and Japan. The main export commodities are ready made garments, woollen carpets, woollen and pashmina goods, handicrafts of which most of them are manufactured in the Kathmandu Valley. The majority of goods imported from third countries are also handled through the Kathmandu Valley. The Kathmandu Valley is also the entry point for the majority of foreign tourists. In 2008/09, a total of 409,100 tourists (excluding Indians) arrived in Nepal, of which, more than 90% enter through Kathmandu international airport. Industries 22. Kathmandu valley has a number of traditional cottage industries like textile (handlooms), brick and tiles, pottery, handicrafts, wooden furniture and carving, bamboo crafts, leather crafts, herbal medicines, traditional art and paintings. The major carpet industries are concentrated in Kathmandu, whereas handicrafts especially metal crafts are established in Lalitpur district. Economically Active Population 23. About 53% of the total population aged 16 years and above in the valley are economically active (Census 2001). Majority of the population of the Kathmandu Valley are engaged in agriculture and forestry (36%). The other major industries are manufacturing (17%), commerce (16%), construction (4%), and transportation / communication (3%). 24. Table 3 summarizes the economic activities in the urban areas of the Kathmandu Valley. About 34% of households are engaged in small-scale non farm activities. Lalitpur Municipality has the highest percentage (50%), whereas Kirtipur Municipality has the lowest (13%). Among the households engaged in non-farm activities, nearly 45% of the households are engaged in trade and business followed by services (32%) and manufacturing (9%). Nearly 50% of the households of Kirtipur and Kathmandu are engaged in trade and business. Appendix 8 - Social Safeguards Section B Page 7

19 Table 3: Household in Non-Farm Economic Activities in Kathmandu Valley Municipalities % of HHs engaged in non-farm activities Manufacturing Trade/ Business Type of activities Transport Services Others Lalitpur Bhaktapur Madhyapur Thimi Kathmandu Kirtipur Total Source: Population census 2001 (selected urban tables), CBS 2003 Crops 25. In the rural areas of the Valley, rice paddy is the main crop of Kathmandu and Bhaktapur district, whereas maize is the prominent cereal crops of Lalitpur district. The other cereal crops in the local districts are millet, wheat and barley. Other agricultural produce such as lentil, soya bean, pea, black gram are the main pulses grown, as well as pulses, potato and oil seed. Livestock 26. Livestock rearing is the second most important activity after cropping. Most of the households in the rural areas have some connection with animal husbandry for income, food or draft power. Goat represents the highest number in Kathmandu Valley followed by cattle and buffaloes; the produce of which has a ready market in the local city areas. Poverty 27. According to the 2001 census and Nepal Human Development Report 2004, the poverty status of the Kathmandu Valley is lower than the national level. Table 4 indicates the human development index in the Kathmandu Valley compared with the national values. Table 4: Kathmandu Valley Development Indicators Districts Human Development Index (HDI) Human Poverty Index (HPI) Gender-related Development Index (GDI) All Nepal Kathmandu Lalitpur Bhakltapur Source: Census 2001, Nepal Human Development report by UNDP Slums and Squatter Settlements 28. The rapid population growth has created a number of slums and squatter settlements in the Kathmandu Valley. Table 5 summarizes the findings of a survey conducted by LICSU, KUKL during There were 39 squatter settlements and 137 slums in the Kathmandu Valley on which 40,237 population live in 8,846 households. Of these, 22% had no access to piped water supply and none had adequate sanitation. Appendix 8 - Social Safeguards Section B Page 8

20 Table 5: Slums and Squatter Settlements in Kathmandu Valley Type of Residence Slums No. of Households (HHs) Total Population Average Household size % of HHs without piped water supply Bhaktapur Municipality Madhyapur Thimi Municipality Lalitpur Sub - Metropolitan 391 1, Kathmandu Metropolitan 3,784 16, Kirtipur Municipality 1,674 7, Squatters Kathmandu Metropolitan 1,861 8, Total 8,846 40, Source: Mapping of Slums, Squatters and Stand Posts in Kathmandu valley updated by LICSU, KUKL, June 2008, AVIYAAN Consulting (P) Ltd. 29. Due to constraints in supply, KUKL is unable to supply the required quantity water to these un-regulated settlements. To help manage the water supply and sanitation problem in these areas, the government established the Low Income Consumer Support Unit (LICSU) in KUKL in The basic objective of LICSU is to serve the drinking water to the urban poor. It has started to construct water tanks, stand posts and rehabilitate broken stand posts. In 2008, it was found that 395 (38%) public stand posts were not working in the valley. However, KUKL has managed to distribute drinking water on these settlements through its own water tankers. 30. Because, KUKL is unable to provide adequate drinking water and sanitation services to the increasing slum and squatter settlements the participation of NGOs and the private sector has been encouraged for operation and management. The government has adopted a policy of handing over completed schemes to the user groups for operation and management. For this, user groups are required to share at least 20% of the total cost of the scheme. As a result, there is a significant number of Water User Groups in Kathmandu Valley who are involved in operation and management of drinking water system and sanitation in different locations. 31. There are also various NGOs/INGOs working in the water and sanitation sector in the valley. These organizations have focused mostly in slums and squatter settlements and rural areas of Kathmandu Valley. They have constructed water tanks of 5m 3 capacity and a number of latrines/toilets with drains in these communities. 3.3 Socioeconomic Profile of the Kalopul DNI Pilot Area 32. The DNI pilot area designed under TA 4893-NEP is located in the ward No.7 and some part of ward No.8 of Kathmandu Metropolitan City. The present population of this area is estimated to be 20,000 with 4,000 households. It comprises of about 100 hectares. The major settlement names are Sifal, Chabel, Gagahiti, Bulbule, Jayabageshowri, Mitrapark, Kalopul, Binayak Tole, Katubahal, Panika Tole, Ganeshthan, Lamapokhari, Mirmire Tole, Adarsha Basti. Further details are provided in Annex The business survey in the DNI pilot area found the existence of about 900 business/shops of different categories like groceries, general stores, clothes, vegetables, Appendix 8 - Social Safeguards Section B Page 9

21 readymade garments, small hotels / restaurants, hardware, stationeries, medicine, sweets, utensils etc.. During the business survey, it was observed that there were about 60 hawkers in total located at different road junctions. They were selling fruits, seasonal vegetables and readymade clothes. Some of them had small tea shops or hot food stalls. 34. The hawkers were concentrated mainly in the Jayabageshowri and Chabel junction areas. Map 3 gives an aerial view of the Kalopul DNI Pilot study area. Map 3: General View of the DNI Pilot area Social Profile Demographic 35. The average family size of the DNI area is about 5.6 per family. The average family size of the Kathmandu Municipality is 4.4 where as the national average is Table 6 shows that the major population group of the households lies between the ages of 16 to 45 (55%) followed by the ages between 46 to 65 (18%). The percentage of children below 15 years is about 18%. Appendix 8 - Social Safeguards Section B Page 10

22 Table 6: Demographic Features of the Sampled Households Study area DNI pilot area No. of Population HH Population by Age Groups (in %) Households Male Female Total size NA & over Total , Source: Field Survey, November 2009 Social Classification 36. Brahmin, Newar, Chettri are the major ethnic group residing in the DNI pilot area. The population structures of the sampled households shows that Brahmin, Newar, Chettri occupied 41%, 34% and 11% of the total household of the project area respectively. Other prominent ethnic groups are Gurung (5%), and Rai (3%). 37. The study on Kathmandu Valley Water Distribution, Sewerage and Urban Development 2009 made by Kanako Kishi found the Newar (48%) were the main ethnic group followed by chettry/thakur/brahmin (42%) in their study area. Education 38. Literacy rate is one of the significant indicators of economic and social development status. Out of 219 households which were interviewed, about 93% family members are literate. 39. The survey conducted during 2009 by Kanako Kishi revealed that 62% of the HHs have higher education or college level education, where as 18% of the HHs in the municipalities have had no formal educations. Economic Activities 40. The sampled household survey reveals that most of the household members are engaged in services (18.4%) followed by trade and business (9.9%). About 32% of the economically active population are students. Other major activities are laborers within and outside the country. Similarly, 17% of family members were engaged in household work. Details of the economic activities of the sampled household members are given in Table 7. Table 7: Economic Activities of Household Members DNI Pilot area Service (Public) Service (Private) Trade & business Labor Labor abroad Student Dependent (children) House Hold work None Male 48 (3.9) 104 (8.5) 77 (6.3) 17 (1.4) 24 (2) 208 (17) 15 (1.2) 2 (0.2) 113 (9.2) Female 20 (1.6) 51 (4.2) 44 (3.6) 4 (0.3) 11 (0.9) 182 (14.9) 10 (0.8) 207 (17) 84 (13.6) Total 68 (5.6) 156 (12.8) 121 (9.9) 21 (1.7) 35 (2.9) Note: Figures in the parenthesis indicates the percentage Source: Field Survey, November (31.9) 25 (2.1) 209 (17) 197 (16) Appendix 8 - Social Safeguards Section B Page 11

23 Facilities possessed by the Household 41. The households were also asked the type of facilities that they possessed in their residence. The survey found that almost all households have television, mobile-phone, gas stove, pressure cooker and rice cooker. More than 70% of the households had a microoven, radio/transistor and electric fans. Similarly, more than 60% possessed a computer, VCD/DVD/VCR and refrigerator. Nearly 10% of the households have a washing machine and car/jeep. Access to Safe Drinking Water and Sanitation 42. The piped water is being supplied to different communities and residential areas by KUKL mostly through GI pipe from the Mahankal Chaur reservoir. It has been reported that the water supplied by KUKL is not sufficient to meet the household demands. But, only 32% of the respondents reported to having another source of water within their house compound like wells, hand pumps etc. About 23% of the HHs did not give any response in this regards. 43. It has been reported that almost all households have toilet facilities. But some households (15%) still lack sewerage connection. Some households reported that they had suffered from water borne disease like typhoid, skin disease, fever, jaundice due to the supply of unsafe drinking water by KUKL. Water Consumption 44. It was found that the total household consumption of water excluding tenants is about 480 liters per day in wet season while it decreased to 380 liters per day in dry season. The per capita consumption is 86 liter in wet seasons and 68 liters in dry seasons. Water Pressure 45. Nearly 50% of the sampled households suck water from the KUKL water mains by using electric pumps. They argue that they could not get the water, if they did not suck using the electric pump. This indicates that water delivered to 50% of households in the sample DNI area has inadequate pressure. Willingness to pay 46. It was found that about 50% of the households were not willing to pay more than NRs.200 for minimum supply of 10,000 liters per month. About 18% of the households were willing to pay more than NRs.500 for the hygienic and regular supply of 10,000 liters per month. Type of House and Number of Rooms 47. Around 92% of the sampled families have pakki/ or pillar system house (brick walls, cement floor, RBC/RCC roof), where as 8% have semi-pakki (made of stone/brick with mud mortar). About 38% of the houses have 2 floors, 37% have 3 floors and 13% have more than 3 floors. 48. It has been found that more than 30% of the houses had 7 to 9 rooms while 10% of the households have more than 15 rooms in their buildings. The study revealed that more than 90% of the sampled households had provided their rooms for rent. Appendix 8 - Social Safeguards Section B Page 12

24 3.3.2 Economic Profile Income Sources 49. The field survey findings revealed that the majority of the households depended on more than one source of income for their livelihood. Income from private and public services was identified as the main source of income of the interviewed households followed by house rent and trade and business. Other major sources of income of the household were pension and sale of agriculture and livestock products. 50. Out of the total 1,222 household members of the DNI area, 424 (35%) people are actively engaged in the above income generating activities. Among the total economically engaged population, the number of female is 136 (32%) in comparison to male 288 (68%). Poverty Status 51. While conducting interview, the respondents were asked about their total income in the households for their livelihood. The survey found the mean annual income of the households was NRs.370, 144. The average per capita annual income was NRs.68, 545. According to the government national poverty line, the per capita to secure the above poverty level in most of the districts is NRs.10, and the household size in the DNI area is 5.6. On the basis of the family size and the minimum income to secure poverty level, the minimum household income was fixed to be NRs.56, 000. Based on this calculation, about 4 households in DNI area were identified as being below the poverty line. Their household income falling below NRs.60,000 per annum. Household Income and Expenditure 52. It has been reported that the household income of the surveyed area derives mainly from services (government and private), house rent and trade and business which constitute about 29%, 28% and 22% respectively of the total income. The income from remittances, labor / wages, local farm/livestock income-generating opportunities are limited. Pension is also one of the main sources of income of the households which constitute about 9% of the total source of income of the surveyed households. 53. The main features of the reported sources of income and expenditure recorded in the survey are detailed in Tables 8 and 9 and are summarized as follows: 2 The annual average per capita income of the surveyed DNI area range from a minimum of NRs.38, 571 to a maximum of NRs.162, 000 where as the annual average per capita expenditure ranged from NRs.32, 760 to NRs.92, 000. The major source of income is government and private services (29%), house rent (28%), trade & business (22%). Other sources of income included pension, remittances and income from labor (e.g. skilled and un skilled) within the country and outside the country. Maximum expenditure was for food including daily consumption items (47.9%) followed by education and health (28.9%). 1 which is based on a food consumption basket of 2,124 calories and an allowance for nonfood items of about two thirds of the cost of the basket 2 It should be noted that the measurement of income and expenditure by means of questionnaire surveys is limited. Questions on income may be seen as an invasion of household privacy, and the data collected is entirely dependent on respondent recall and integrity. Appendix 8 - Social Safeguards Section B Page 13

25 54. The study made by Kanako Kishi in 2009, found that the mean expenditure on food of the household was Rs. 8,174 resulting the per capita expenditure was Rs 2,019. Table 8: Reported Sources of Income of the Households S.N. Income Source % of total annual income 1 Agricultural /Livestock House rent Trade/ business Self employed/ industries Labor/Wages Services (government/private) Pension Remittances (Labor abroad) Others 3.83 Total 100 Source: Field Survey, November Table 9: Reported Expenditure by Type of the Households S.N. Expenditure Item % of total annual expenditure 1 Food & daily consuming items Education /health Electricity bill Water tariff Others 15.5 Total 100 Source: Field Survey, November Gender Status Women Headed Households 55. According to 2001 census, about 15% of households have been reported as women headed. In the urban areas it was s little bit more than the country as a whole i.e. 17% in The survey in the DNI area indicated that about 36% were women headed households. Of the total female headed households, about 20% were widows. Literacy 56. There is still some difference in the literacy between male and female. It was found that about 88% of females were literate in comparison to 97% of the male population. Economic Activity 57. About 17% of the women are housewife in the study area. Only11% women of the total household members are involved in the income earning activities compared to 22% of the male members. They are involved particularly in the service sector, trade and business and labor inside and outside the country. It has been reported that in addition to the economic activities outside the home, women are extensively involved in household s activities like cooking and cleaning, washing clothes, child care, care of elderly etc. Decision Making 58. The respondents were also asked about the involvement of women in decision making of household matters like finance, education, health care, purchase of assets, day to Appendix 8 - Social Safeguards Section B Page 14

26 day household matters, etc. It was found that women were involved in the decision making of almost all household matters. Ownership 59. In most of the developing countries, the family land and household assets have been owned by male population. In some cases, both the male and female own land and assets through inheritance. However, in recent years, land ownership of women has increased in Nepal due to the government policy of 20% rebate/concession on land registration fees while purchasing land. Almost half of the households women in the survey own assets like land, houses and other structures. Majority of them also keep money separately in the bank or elsewhere. Participation 60. The participation of women in social, political, religious, community gatherings in Nepal has increased in recent years. During the survey, the respondents were also asked about the gender participation in community meetings. The percentage of female alone in social / religious gatherings was slightly more than the men, whereas the men alone participation in the community gatherings is much higher than females. However, around 50% of both male and female together participate in social/religious work Household s Opinion on Water Supply 61. The surveyed households were asked about their perception regarding the water supply of KUKL. Out of 219 households interviewed, 53.4% indicated irregular supply of water. About 51% of the households were not satisfied with the quantity of water supplied. Similarly, 26% complained about the water pressure. The other complaints of the respondents were about the quality, supply hour, and the water supply schedule (Table 10). Table 10: Household s Opinions regarding KUKL Water Supply S.N. Opinions No. of respondents Percentage (%) 1 Nothing to say Supply hour Available quantity of water Pressure Regularity Maintenance in the Leakage Schedule Quality Others Equal Distribution Source: Field Survey, November The study on Kathmandu Valley Water Distribution, Sewerage and Urban Development made by Kanako Kishi during 2008, found that about 50%, 39% and 44% of households were satisfied with the quantity available, regularity and water pressure Sewerage and Sanitation 63. When asked about the existence of sewer system in the surveyed area only 12 (5%) households reported that there was a sewerage system. None of them reported the existence of combined sewer system in the area. About the problem of sewerage, only 35 (16%) households reported the clogging of sewerage pipes from time to time. The Appendix 8 - Social Safeguards Section B Page 15

27 household members were also asked their willingness to pay for the improved sewerage system in the area. About 46% informed that they want to pay as usual i.e. 50% of the water tariff or less than NRs.200, where as 11.4% reported that they are willing to pay up to NRs.250. About 16% were willing to pay more than NRs.500 for the hygienic and regular supply of 10,000 liters of water. Other households did not want to comment on this question. 64. It has been found that different agencies have constructed sewer lines in the study area. It was also reported that about 57% of the households used water sealed toilet with flush, whereas 42% used water sealed toilet without flush. Households were also asked about their house connection to the wastewater system, majority were unaware of the wastewater system about who constructed the system, who operates or maintains the system etc. About 28% of the household still dispose their solid waste into the septic tank and majority of them cleaned the tank within a 2 to 5 years period mostly by private persons. Appendix 8 - Social Safeguards Section B Page 16

28 CHAPTER 4: Information Disclosure, Consultation and Participation 4.1 Information Disclosure 65. During the preparation of Resettlement Plan, the following activities were undertaken to disseminate the project information: Squatters and Encroachers 66. The Resettlement Specialist informed the squatters and encroachers living in the future reservoir sites and pipeline routes - Mahankal Chaur II, Bansbari, Khumaltar, Sundarijal Gokarna pipeline and to the house owner of Arubari reservoir. They have been informed that they have to resettle to other places before the project activities begin. They were also informed that they would be compensated by the government under the Resettlement Policy and Framework prepared earlier for Melamchi Water Supply Project Subproject Households of DNI Area 67. The enumerators, during socio-economic household s survey, have informed all the 219 households about the project activities like rehabilitation of old pipes and laying of new pipelines in the main roads and inner roads of the DNI area. They were informed about the possible impacts such as disruption to the local inhabitants and pedestrians during construction. During the topographical survey, the local people were also informed about the future project activities Business/ shops of DNI Area 68. A total of 55 shops/business owners of 33 different types and 12 hawkers of 6 different types were purposively selected for interview. The business survey was conducted from 27 to 31 December During the business survey, the business owners and the shop keepers were informed about the possibility of disruption to the business. They were informed that the survey was a preliminary activity to determine possible profit losses if full closure of the road was required during construction. They were also informed that future public consultations and disclosures would be held regarding possible disruption to businesses and issues of compensation modality would be discussed. 4.2 Consultation Community 69. A number of household surveys and community consultations have been undertaken in the Kathmandu Valley as part of the preparation and design of the Melamchi Water Supply Project to determine water sector priorities and needs of the public in general and specific communities. Table 11 provides a summary the findings. 70. A baseline survey was also recently completed in 2009 by the University of Tokyo, as part of TA4893-NEP supported by PPIAF, which studied the KUKL services to customers in the Kathmandu Valley to provide guidance on present water use and future demands. 71. Prior to the PPTA, the Melamchi Water Supply Project (MWSP) (ADB Loan NEP) conducted a large number of consultations and meetings in the Kathmandu Valley. For example, more than 75 people from Sundarijal, Nayapati, Bhadrabas, Gagalphedi VDCs attended a public hearing/consultation meeting held on 10 August Appendix 8 - Social Safeguards Section B Page 17

29 72. The Project Affected People of Kathmandu Valley have been informed from time to time about the construction of reservoirs, water transmission lines, the water treatment plant and land acquisition together with the project s resettlement, rehabilitation and compensation modalities. MWSP had formed a NGO committee comprising of donors, MWSDB, and NGOs, which held monthly meetings in Kathmandu. Table 11: Summary of Household Water Use Surveys in Kathmandu Valley A. Household water use survey (December 2003) Sample Size 300 households in urban areas 86% of the population satisfied with the quality of water supplied by KUKL 94% were not satisfied with the quantity of water supplied 78% were discharging wastewater into municipal drain directly 15% discharged their wastewater into a septic tank 9% discharged septic tank effluent into municipal drains B. TA REG: Survey of Water Demand in the DNI Demonstration Area, University of Tokyo, February 2008 Survey done during May 2005 (dry), July August 2005 (wet) and March 2006 (winter). Sample Sizes Min Bhawan (Demo-Scheme area) = 422 HHs Anam Nagar & Chabahhil (Control groups) ( ) = 515 HHs General Comment: Low quality service of KUKL (low pressure, intermittent and irregular supply, haphazard meter reading etc.). Due to the low pressure of water, people use electric pump for sucking water from mains. The following are the extent of water sucking from the pump in different sample area: Study area Dry season Wet season Winter season Min Bhawan 74.2 % 50.4 % 67.2 % Anam Nagar 69.2 % 68.5 % 71.6 % Chabahhil 26.3 % 20.3 % 32.3 % 17.6% HHs had insufficient water from KUKL or just enough for drinking and cooking purposes in the wet season, which jumped to 86.2% in the dry season. 80.3% and 12.4% HHs were satisfied with the quantity of water of KUKL during wet and dry season respectively. 60% of the HHs were satisfied with its quality of water throughout the year 73. MWSP staff attend regular discussion forums organized by NGOs;(e.g. Sunday Forum of WAFED, discussion forum held by NGO for Urban Water and Sanitation, Nepal Vasa Misha Khala, Society of Business and Professional Women, Society of Public Health Engineers-Nepal, Nepal Engineering Council, Nepal Engineering Association, Melamchi Concern Group, FM radio etc). Table 12 provides a summary of MWSP Community Issues Resolution Team (CIRT) involvement in addressing community grievances. Table 12: Community Consultations related to MWSP Sub-Project 2 Date Location Topic Details Sept Sundarijal Land acquisition, maintenance of existing government school etc. Sept Jorpati Employment, work progress Information dissemination and discussion regarding land acquisition and maintenance Employment for the youth and the construction of reservoir to start early Nov 2007 Sundarijal Land acquisition Compensation of remaining land parcels of Adit Access Road and Water Treatment Plant Sept Demo area Project and objectives Information dissemination regarding demonstration project and its objectives Appendix 8 - Social Safeguards Section B Page 18

30 4.2.2 Project Stakeholders 74. During the Project scoping exercise considerable consultation was had with different stakeholders: PPTA / KUKL weekly progress meetings. The PPTA met KUKL PID every week during the PPTA, except during national holidays, to review TA progress and resolve any outstanding issues. The meetings were chaired by the Project Director, PID. Participants included PID Deputy Director, KUKL Technical Manager, ADB institutional consultant, TA Team Leader and TA Deputy Team Leader. Other specialists or consultants attended for specific discussion issues. PPTA / MPPW meetings. The PPTA met with the MPPW TA coordinator at least once a month to discus various progress issues. In addition, a presentation on TA progress was made to the Project Steering Committee every 2 or 3 months. Focus Group Discussion (FGD) Meetings. FGD were held periodically during the TA to discus specific technical or reporting issues to obtain stakeholder views and clarifications. These related specifically to the development of the Capital Investment and Asset Management Program, the selection of a water supply distribution network improvement pilot area for detail design and the Feasibility Study for preparing the Project loan for ADB. Public Consultation Workshops. Workshops were arranged during the PPTA to present the TA finding to a wider stakeholder and public audience. These were related in particular to the for the proposed Project loan. Several meetings, workshops, and focus group discussions (Table 13) were held with the stakeholders, mainly technical persons to keep them abreast of the TA and to get feedback for project design. Appendix 8 - Social Safeguards Section B Page 19

31 Table 13: Meetings, Workshops, and Focus Group Discussions Held S.N Date No. of partici pants 1 8 July Malla Hotel, Lainchaur 2 17 July July August August September October October November January January April May 2010 Venue Type of people attended Topics Discussed 27 NTNC Conference Room, Jawalakhel 15 KUKL, PMU Meeting Hall, Anamnagar 18 KUKL, PMU Meeting Hall, Anamnagar 21 Meeting Hall, MPPW, Singha Durbar 19 NTNC Conference Room, Jawalakhel 18 KUKL Mahankal Chaur Branch office 54 Shanker Hotel, Lazimpat 16 KUKL Office, Tripureshowr 15 KUKL Meeting Hall, Tripureshowr 15 KUKL Meeting Hall, Tripureshowr 41 The Orchid Hotel 75 Shanker Hotel, Lazimpat Secretary, Joint secretary, DG, KUKL Senior officials, ADB staff & consultants, JICA, UN Habitat, UNCEF, KVWSMB, PPTA Senior officials- PMU, KUKL, rep. from different NGOs working on water supply, sanitation and sewerage, PPTA consultants DGM, Managers-KUKL, PID senior officials, ADB consultants, PPTA consultants PID senior officials, Managers, Dep. Managers, Ast. Managers - KUKL, ADB consultants, PPTA consultants Secretary, Joint Secretaries, Executive officers from Kathmandu, Lalitpur, Bhaktapur Municipality, senior officials from HPCIDBC, PPTA consultants. PID senior officials, Managers, Technical. Managers, Ast. Managers -KUKL, rep. from different NGOs, INGOs, Project Officer from ADB/NRM, ADB HQ, PPTA consultants Managers, Technical manages, Dept. managers, Asst. managers KUKL, PPTA consultants Secretary, Joint secretary, DG, KUKL Senior officials, ADB consultants, Rep. from HPCICBC, MWSDB, DUDBC, KVWSMB, PPTA consultants KUKL senior officials, ADB consultant, PPTA consultants KUKL Board members, KUKL managers, PPTA consultants KUKL Board members, KUKL managers, PPTA consultants KUKL management and branch managers and PID Secretary, Joint secretary, DG, KUKL Senior officials, ADB consultants, Rep. from HPCICBC, DUDBC, PPTA consultants Inception consultative workshop Focus Group Discussion on wastewater management in Kathmandu Valley Focus Group Discussion on population projections and water demand Focus Group Discussion on asset condition survey and water supply zoning Steering Committee meeting Focus Group Discussion on conceptual wastewater master plan options Focus Group Discussion on selected DNI pilot area Focus group discussion on draft CIAMP Meeting on CIAMP PPTA progress, draft CIAMP and interim feasibility reports Focus group discussion on wastewater Project Loan Feasibility Study Project Loan Feasibility Study Appendix 8 - Social Safeguards Section B Page 20

32 CHAPTER 5: GRIEVANCE REDRESS MECHANISM 5.1 Government Policy for Grievance Redress 75. There are provisions of compensation for losses or any damages during land acquisition under the Land acquisition act of Nepal The Act allows for interested persons (i.e. APs) during a land acquisition process to file or represent their cases to the Chief District Officer (CDO) and raise objection against acquisition by a notice to the Ministry of Home and to get redressed under the LA Act clause 11 Section 1, 2 and 3. But, there are no provisions in any government acts to redress the grievances for the partial impact to the community or businesses during the civil works construction on government owned land. Various complaints and problems that are likely to rise during and before the implementation of a project include the following: Project affected businesses not listed in the compensation list; Business losses not identified correctly; Inadequate compensation; Delay in distribution of compensation; and Delay in rehabilitation of community/government infrastructure. 5.2 Proposed Grievance Redress Mechanism Grievances Redress 76. The Project Implementation Directorate (PID) Safeguard Unit will be responsible to address the issues, problems raised by the local communities regarding the loss or disturbance of assets, water and sanitation etc. during the implementation of the project. In this regards, PID Safeguard Unit shall ask the Resettlement/ Social Development and Environment Specialist of the design and supervision consultants (DSC) to assist in handling those grievances. At this stage, the community level stakeholders should be encouraged to participate in the handling of grievances at the project work site Grievance Resolution Procedure 77. Figure 5-1 shows the affected persons / community who will submit the grievances / complaints to the Local Consultative Group (LCG). The LCG will try to solve the grievances at the project site level. If the grievances cannot be solved at project site level, it will submit to the Safeguard Unit / PID. With the assistance of Resettlement, Environment Specialist, DSC the grievance will be redressed. If the grievances cannot be solved by the PID Safeguard Unit, it will be referred to the Project Director. If the grievances cannot be solved by the Project Director, it will be referred to KUKL, Board of Directors. Further, if the grievances cannot be resolved, it will refer to the concerned ministry/court. The proposed grievance resolution procedure will be as below: LCG will resolve the grievances at project site level, if it cannot, it will be referred to PID for resolution; The PID Safeguard Unit and DSC RS will make field visits to verify the grievances. The grievances will be assessed and if required solutions will be recommended. If the grievances are not resolved, they will be referred to the PD, PID; PD will assess the grievances and try to resolve with discussing with PID SU and DSC RS. If it cannot, it will be referred to the Board of Directors, KUKL; Appendix 8 - Social Safeguards Section B Page 21

33 The Board of Directors will assess the complaints/grievances and if required solutions will be recommended. Even If the grievances still cannot be resolved, BoD will refer them to the concerned ministry or to the court Local Consultative Group (LCG) 78. A Local Consultative Group (LCG) will be formed representing the whole project area. The LCG will be represented by persons from the Kathmandu Metropolis, the KUKL branch office, PID, women s groups, local water user s committee/group, etc. The LCG will be a voluntary group. They will be paid meeting allowances only when they participate in the LCG meeting. 79. The LCG will be formed by PID with the assistance of DSC RS in each affected city ward before the compensation payment begin to APs. The LCG s role will be very crucial during the planning and implementation of project activities. The group will review the following matters: During Planning and Management 80. The LCG will be consulted during construction works and informed about the modality of project implementation. Their views will be considered at every stage of project implementation. During Implementation 81. LCG will: observe / monitor the works carried out by the contractor;. participate in the workshops / consultations organized by PID before and during project implementation; and. participate in grievance resolution procedures. Appendix 8 - Social Safeguards Section B Page 22

34 Figure 5-1: Grievance Redress Mechanism Ministry/Court KUKL Board of Directors Project Implementation Directorate (PID) Technical Division Safeguards Unit Resettlement/, Environment Specialists, Legal Officer Design Supervision Consultant (Resettlement/ Environment Specialist) Grievances/Complaints Redress grievances Local Consultative Group AFFECTED PERSONS/ COMMUNITIES Appendix 8 - Social Safeguards Section B Page 23

35 6.1 Entitlement Policy CHAPTER 6: ENTILTMENTS, ASSISTANCE AND BENEFITS 82. For the Project, the following entitlements are proposed based on the principles of ADB s new safeguard policy, June The entitlements have been proposed to mitigate the potential impacts of the Project. It describes the following: Unit of entitlements Entitlements for the damages caused during construction Entitlements for the loss of community facilities and resources Entitlements for the temporary loss of business 6.2 Entitlement Matrix 83. All affected persons will be compensated at full replacement costs. For the business / incomes or employment, cash compensation will be made for the loss of business, income and wages based on the average daily revenues for the number of days that the normal business activity is disrupted. For the loss of drinking water to the community/households, alternative sources of water should be made available during the construction period. Affected businesses and the hawkers will be given 30 days advance notice about any expected customer access restrictions during construction of the project works. They will also be informed that the impact will be temporary for few days only. If the business and hawkers need to relocate, the project will assist in finding an alternative site for their business so that their livelihoods would not be affected adversely. The PID will request the EA (MPPW) and obtain written endorsement of the Entitlement matrix. This will be one of the conditions of the loan negotiation. Table 14 presents a detailed Entitlement Matrix: Appendix 8 - Social Safeguards Section B Page 24

36 Table 14: Entitlement Matrix Type of Loss Entitlement Unit Description of Entitlement and Implementation Procedures 1.Temporary loss of business (Fully Closed Streets) Remarks Responsible Institution 1.1 Temporary or full loss of business, income, jobs or livelihoods Titleholder unregistered shop owners Tenant Permanent/ temporary business Mobile street vendor/ hawkers 30 days advance notice Maintained access as per EMP (e.g., planks, safe pedestrian environment etc.) Shops/business losing income due to full street closure will be entitled to a business disruption allowance (see remarks) Street vendors/hawkers will receive assistance to physically shift to suitable alternative location and receive a onetime financial assistance to cover the losses for the displacement/ move based on the amount of income loss determined during shifting time. Compensation for lost income is calculated on the percent of expected business loss due to the Project using the average daily revenues for the number of days that business activity is disrupted. DSC Resettlement Specialist will conduct detailed census of affected business on fully closed streets during detailed design to calculate compensation amounts. Final compensation will be determined by PID. Compensation will be paid before construction works begin. PID/KUKL 2.Temporary loss of business (Partially Closed Streets) 2.1 Temporary or full loss of business, income, jobs or livelihoods Titleholder unregistered shop owners Tenant Permanent/ temporary business Mobile street vendors/ hawkers 30 days advance notice Maintained access as per EMP (e.g., planks, safe pedestrian environment etc.) If shops/business loses income due to inhibited access, then they are entitled to a business disruption allowances. Street vendors/hawkers will receive assistance to physically shift to suitable alternative location and receive one-time financial assistance to cover the losses for the displacement/ move based on the amount of income loss determined during shifting time. Income loss on temporary closure less likely than full closure streets If losses occur during construction, the business would file a grievance with the LCG or PID Safeguards Unit for compensation. Compensation is calculated on the percent of expected business loss due to project using the average daily revenues for the number of days that business on fully closed streets during detailed design. The Project will assist for new opportunities. Compensation Unit, PID/KUKL Appendix 8 - Social Safeguards Section B Page 25

37 Type of Loss Entitlement Unit Description of Entitlement and Implementation Procedures 3. Damages Caused During Construction 3.1 Government and private structures, infrastructures Titleholder Tenant Landless squatter/ encroachers on government land 4. Community Facilities and Resources 4.1 Loss of Community structures 4.2 Loss of drinking water and sanitation Local community Private and community that owns the water points and sanitation Extreme care should be taken by the contractors to avoid government and private property unnecessarily Where damages do occur to private and government property as a result of construction works, the cost of restoring to at least their former condition will be the responsibility of the contractor as part of their contract. Restoration of affected community buildings and structures to at least previous condition, or replacement in areas identified in consultation with affected communities and relevant authorities Replacement and restoration of the water points before construction damage and management of solid and wastewater disposal. Remarks Compensation at replacement cost for the losses will be borne by the contractor. Replacement cost will be determined by PID/AP Community structures include service roads, inner roads, temples, footpaths/ trails, culverts, water points. The time gap between the construction of new system and transfer from the old system should be minimized. Alternative sources of water should be made available during the construction period. Responsible Institution Contractor/PID PID/KUKL PID/KUKL Appendix 8 - Social Safeguards Section B Page 26

38 CHAPTER 7: RESETTLEMENT BUDGET AND FINANCING PLAN 84. This chapter provides cost estimate for the Resettlement Plan (RP) activities under the proposed project. The project will not require the acquisition of private land or the relocation of houses, business or community facilities. Any project related adverse impacts will only be temporary during construction of the works. Such impacts are likely to be experienced only by local businesses and street hawkers due to anticipated local road closures. The estimated compensation cost for these temporary disruptions are tentative and calculated for the budget purposes. The value of compensation for the loss of normal business profit will be determined by the PID on the basis of the recommendations made by DSC RS Business Disruption Allowances (a) Shops 85. It has been assumed that there will be no full closure of the shops during construction, although road closures restricting vehicle access is expected in some places. Pedestrian access should be maintained at all times. As a result, only partial disruption to some businesses is expected. There should be no need to close shops and retail outlets. However, the RP makes provision for compensation for business losses during construction. (b) Hawkers 86. The business of hawkers is very small and generally can easily be moved from one location to another. Usually, there are several alternative areas along the existing roads where they could be relocated. The hawkers losses are therefore considered as minimal. However, if the hawkers have to be displaced permanently, they will be provided for the loss of business and displacement allowances. 87. It is not possible to indicate at this stage the exact number and type of business that will be actually affected severally during the project construction work. Detailed survey and collection of the data of the affected business and hawkers will be done during the detail design of the project components. 88. For budget purposes, based on the detail survey undertaken in the DNI pilot area, it has been estimated that the daily business of about 30% the shops and hawkers could be disrupted partially during construction. With about 900 shops and 60 hawkers in DNI pilot area it is estimated for the whole of the project area of nearly 1,800 Ha. up to 5,000 small to medium sized businesses or shops and over 300 street hawkers or vendors could be temporarily affected. 89. Using data from the DNI pilot area survey the average daily profit per business is estimated as NRs.1,130 and for hawkers NRs.250. Annex 5 provides details of the business survey. For the estimation and calculation of cost of compensation, it is assumed that the maximum period of business disruption would be 7 days. The cost of compensation for temporary disruption to business on fully closed streets is estimated at NRs.40, 000,000 ($540,000). 7.2 Implementation and Management 90. It includes information dissemination campaigns, awareness and participation of stakeholders on project related issues, costs for formation and several meetings with the LCG/C. About NRs 3,500,000 is estimated for community awareness and participation of Appendix 8 - Social Safeguards Section B Page 27

39 stakeholder and information dissemination campaign and NRs.3,00,000 for the establishment and support to the groups / committees. A total of 900 meetings (Bi-monthly meetings over a period of 5 years) have been budgeted for, at a cost of NRs. 10,000 per meeting. Total cost estimate for implementation and management is NRs 12,500,000 ($169,000) 7.3 Contingencies 91. A contingency amount of 10% of the total compensation and rehabilitation costs has been added. 7.4 Total Cost Estimate 92. The total cost estimate for the compensation, rehabilitation and the implementation and management for the resettlement activities for the proposed project is as follows: Table 15: Summary of Compensation Costs Item Total cost (NRs) Business disruption allowances 40,000,000 Establishment and support to the LCGs 3,000,000 Bi-monthly meetings over a period of 5 years 9,000,000 Community awareness/ participation 3,500,000 Contingencies (10% of the cost of compensation and rehabilitation) 5,550,000 Total (Equivalent $825,000 approx.) 61,050, The KUKL PID will be responsible for managing the cost of RP implementation. PID shall confirm that there is sufficient fund in the project to compensate the APs on time i.e. before the award of civil works contract. Appendix 8 - Social Safeguards Section B Page 28

40 8.1 Organizational Framework CHAPTER 8: INSTITUTIONAL ARRANGEMENTS 94. Ministry of Physical Planning and Works (MPPW) will be the executing agency (EA) and Project Implementation Directorate will be the implementing agency (IA) of the project. The IA has already been established which is headed by the Project Director. The PID Management Division will have a safeguard Unit, which will perform all the resettlement activities with the help of Resettlement/Social Expert of DSC. DSC RS will conduct a detailed census on all fully closed streets during detailed design. 95. As the project implementing agency, PID will assume the following responsibility for RP implementation: Implementation of procedures to minimize adverse social impacts (disruption to local inhabitants, traffic flow, disruption to businesses and hawkers, inconveniences to pedestrians etc.) throughout the planning, design and implementation phase; Recording of all project affected persons e.g. businesses, hawkers by means of census and verification of losses; Establishment of a compensation unit within PID; Recruitment of a domestic Community Awareness and Participation Consultant (CAPC); Establishment of Local Consultative Groups at project/ward level; Establishment of the procedures for the resettlement and compensation activities for the project areas; Implementation of information dissemination campaigns; Coordination with, women s group, water user s group / committee, local community, Kathmandu Metro, Lalitpur Sub-Metro Office etc. 96. The organizational framework for resettlement activities is illustrated in Figure 9-1. Appendix 8 - Social Safeguards Section B Page 29

41 Figure 9-1: Organizational Framework for Resettlement Activities KUKL Board of Directors GM/MD, KUKL Project Implementation Asian Development Directorate (PID) Bank (ADB) Technical Division Management Design Supervision Division Consultant (DSC) (Social/Resettlement Specialist) Local Consultative Group Safeguards Unit Compensation Unit (PID) * Rep. from Kath. Metro * PD/DPD * Rep from KUKL/PID (Resettlement Specialist * Chief, Management Division * Rep. from APs Environmentalist, * Chief, Technical Division * Rep. from Women group Legal Officer) * Chief, Account Section * Rep. from Local NGOs * RS, DSC * Rep from local Water Users group/committee Functions Functions * Consultation * Confirm entitled persons * Grievance redress * Finalize compensation amount * Participatory monitoring * Compensation distribution * Record keeping * Inform contractor AFFECTED PERSONS Appendix 8 - Social Safeguards Section B Page 30

42 8.2 Role of Compensation Unit 97. The compensation unit established within PID will determined the final compensation amount based on detailed census data conducted by DSC RS. The unit will comprise of the following personnel from PID: PD/DPD, PID; Chief, Management Division Chief, Technical Division Chief, Account section RS, DSC 8.3 Role of Local Consultative Groups / Committees 98. Local consultative groups (LCG) will be formed representing each project component construction area. The LCGs will be represented by the persons from the Kathmandu Metro, Lalitpur Sub-metro, from the KUKL branch office, PID, from the women s groups, local water user s committee / group, etc. The LCG role will be very crucial while planning and implementation of project activities. The group will look into the following matters: During Planning and Management 99. The LCGs will be consulted for laying the water supply and wastewater pipelines and will be informed about the project implementation modality. Further their view will be considered in every stage of implementation During Implementation 100. The group/committee members will: a) observe/ monitor the work carried out by the contractor; b) participate in the workshops, consultations organized by PID before and during project implementation; c) participate in grievance resolution procedures. 8.4 Role of Community Awareness and Participation Consultants (CAPC) 101. The CAPC will be responsible for the project messages delivery and maintain good rapport with the stakeholders and the public. In summary, the CAPC will: a) education and awareness materials such as posters, billboards and steamers for community display; b) leaflets and stickers; c) television and radio spots/messages of about 30 second education; d) setting and maintaining project websites; e) videos; f) newspaper advertisements and features; and g) any other suitable or appropriate techniques. Appendix 8 - Social Safeguards Section B Page 31

43 8.5 Design Supervision Consultant (DSC) 102. The Resettlement Specialist from the DSC will be responsible for assisting the PID Safeguard Unit (SU). The Social/Resettlement Specialist will also assists SU in resolution of grievances at project level and updating the data and keeping records of resettlement and compensation activities More specifically, DSC RS will perform the following activities (in sequence): Coordinate with contractor who will identify fully closed roads and period of closure. At this time, the CAPC recruited for awareness raising should be informed. Identify affected business and record the data through survey. The date of survey is the cut-off date. DSC RS will use the following table format while recording the data: Table 16: Recommended Table Format for the Record of Affected Business Identification (location address) Name of the Affected persons Type of business Size of business Number of persons employed Daily net profit Remarks (if any) Identify compensation rates using business survey table at the time of survey. Inform affected persons of entitled compensation and method of receiving payments. CAPC will assist APs in receiving compensation payments. Provide list of affected persons and their compensation to the PID. APs to collect payment of compensation. PID to record payments made. PID to notify DSC RS, contractor, and ADB when all payments made. Civil works to commence when all APs are paid exception to those who are out of town/country. However, they would be able to collect on return. If the payment to the APs who are out of country takes time, the contractor would need to work on another road until all payments made. If the period of construction is delayed further than originally planned, the DS RS would recommend to provide additional compensation to the APs for the period of delay. 8.6 Procedure for Resettlement Planning 104. The following table shows the procedure of resettlement planning and flow of funds to temporarily affected persons during preliminary design, detailed design, pre-construction and construction: Appendix 8 - Social Safeguards Section B Page 32

44 Table 17: Procedures for Resettlement Planning Stage Activity Resources Responsibility Preliminary Design Detailed Design Preconstruction Conduct project-wide business survey to determine average incomes of businesses (including hawkers) likely to be impacted. The scope of resettlement impact should be limited to small-scale temporary reductions in business income if customer access is impeded. Identify the following: (i) roads that will experience full closure during construction. (ii) estimated duration of full closure. (iii)conduct baseline data and census of the affected business on roads to be fully closed. (iv) Maintain organized database of socioeconomic information of affected persons. (v)based on the baseline data and census of affected business, prepare a list of affected persons and calculate their compensation. This is the basis for the Resettlement plan budget. (vi)validate and /or update business survey results for income. (vii) Prepare f Management Plan for Temporary Business Impacts during Pipeline Construction. (viii) Submit Management Plan for Kathmandu Valley based on the baseline and census of affected business. (ix) Conduct public consultation of the management Plan.. and approved entitlements. Provide advanced notice (30 days) to affected persons. Pay compensation to affected persons based on the Entitled Matrix before loss occurs (i.e. before construction begins). Ensure receipt of payments. PID compensation unit to record the payments in their own accounts register. Business survey questionnaire (Annex 2 of Management Plan for Temporary Business Impacts during Pipeline Construction) Detailed designs prepared by the contractor Census survey format (Table 16 & Annex 1 of Management Plan for Temporary Business Impacts during Pipeline Construction) Use the Management Plan prepared for Kathmandu Valley Use compensation payment receipt form (Annex 6) PPTA RS Contractor (checked by DSC RS) DSC RS (with the help from hired enumerators) DSC RS DSC RS DSC Rs (with the help of PID, CAPC, LCG) Contractor (checked by DSC RS/CAPC/PID) PID/ compensation unit (supported by DSC RS) PID/ compensation unit (supported by DSC RS) Compensation unit, PID Appendix 8 - Social Safeguards Section B Page 33

45 Construction Ensure all mitigation measures from IEE (i.e. providing planks and boards across trenches, etc) are incorporated into construction contract documents. See IEE DSC/PID Implement all mitigation measures during construction including required safety and access measures (i.e. planks and boards across trenches). Construction contractor Monitor construction activities and ensure contractors are implementing all safety, mitigation measures, and maintaining access to business. See IEE DSC/PID Appendix 8 - Social Safeguards Section B Page 34

46 CHAPTER 9: IMPLEMENTATION SCHEDULE 105. The project is expected to be implemented from the first quarter of Advance action such as formation of local consultative groups, census of affected businesses and hawkers, agreements on compensation payment modality for the loss of business will be completed before construction work commences in any particular affected location. 9.1 Implementation Schedule 106. The civil works for the water supply bulk distribution system (BDS) and wastewater system improvement under new ADB Loan ( ) are scheduled to commence in the first quarter of Construction for water supply distribution network improvement (DNI) will commence in the fourth quarter of Table 18 provides the implementation schedule of project resettlement activities. Table 18: Implementation Schedule of the Resettlement Plan (RP) S.N. Activities Time Period Responsibility 1. Compensation to the unpaid land and house owner of reservoirs and pipelines 2. Compensation to the squatters/encroachers residing on the land already acquired for reservoirs and pipelines 3. Relocation for squatters / encroachers 4. Security of project land (fencing and posting sign board) To be completed by the end of December To be completed by the end of December To be completed by the end of January Immediately 5. Formation of User Groups To be completed by the end of December Formation of Local Consultative Groups 7. Identification of affected business shops and hawkers 8. Fixation of the compensation cost for the business of fully closed streets 9. Distribution of compensation and other allowances to the affected business persons and hawkers 10. Monitoring the status of business of fully closed roads To be completed by the end of January During detailed design During detailed design /before construction Before civil works During detailed design /before construction Loan 1820-NEP: KVWSMB Loan 1820-NEP: KVWSMB Loan 1820-NEP: KVWSMB Loan 1820-NEP: KVWSMB Safeguard Unit, PID, DSC, PID Safeguard Unit, PID, DSC, PID Safeguard Unit, PID, DSC, PID Safeguard Unit, PID, DSC, PID Safeguard Unit, PID, DSC, PID DSC/PID, LCG Appendix 8 - Social Safeguards Section B Page 35

47 10.1 Monitoring CHAPTER 10: MONITORING AND REPORTING 107. The DSC Resettlement/Social Specialist will be responsible for internal monitoring of the implementation of the RP. DSC will also provide feedback and suggestions for the effective implementation of the RP. The monitoring of resettlement activities such as the compensation for the loss of business to the businesses / shops, hawkers, displacement allowances to the business and the hawkers, if required, will be made during the implementation of the project Reporting 108. The DSC RS will be responsible to prepare monthly report and submit to the PID Safeguard Unit. The PID SU will reports monthly to PD, PID. PD, PID will reports bi-annually to ADB. Appendix 8 - Social Safeguards Section B Page 36

48 REFERENCES 1) Asian Development Bank (2003), Key Indicators for the Asia and the Pacific, Manila, Philippines, August ) Asian Development Bank (2009), The Safeguard Policy Statement, Manila, Philippines, June ) Asian Development Bank (2003), Gender and Development, Manila, Philippines, June ) Astra Development Network Pvt. Ltd, Geo Spatial Systems Pvt. Ltd, Innovative Solution Pvt. Ltd (2008). Bagmati Action Plan ( ). Draft report Submitted to: National Trust for Nature Conservation, March 31, ) AVIYAAN Consulting (P) Ltd. (2008), Mapping of Slums, Squatters and Stand Post in Kathmandu Valley, Updated by LICSU, KUKL, June 2008, 6) B. M. Shakya (2004), Survey of Water Resource Management & Green Productivity Practices (A Case Study of Nepal), (Unpublished). APO Project 03 EV-GE-TIA -01- (2). 7) Center for Integrated Urban Development, (2003), Household Water Use Survey and Research in Urban Kathmandu Valley Final Report. To Support SAPI II Study for Melamchi Water Supply Project, Anamnagar, December ) Central Bureau of Statistics (2003). National Population Census 2001 Selected Data. HMG/NPC, June ) Central Bureau of Statistics (2005). A Report of Water Survey in Kathmandu -2005, GoN, a. NPC, CBS, Kathmandu. 10) Central Bureau of Statistics (2004). National Sample Census of Agriculture; Nepal 2001/02 District: Kathmandu, GoN, NPC, CBS, Kathmandu, 2004.Central Bureau of Statistics (2004). National Sample Census of Agriculture; Nepal 2001/02 District: Bhaktapur, GoN, NPC, CBS, Kathmandu, ) Central Bureau of Statistics (2004). National Sample Census of Agriculture ; Nepal 2001/02 District: Caliper, GoN, NPC, CBS, Kathmandu, ) Central Bureau of Statistics (2003). Population Monograph of Nepal, Volume I, GoN, NPC,CBS,Kathmandu, ) Central Bureau of Statistics (2003). Population Monograph of Nepal, Volume II GoN, NPC, CBS, Kathmandu, ) Central Bureau of Statistics (2006). Population Monograph of Nepal, Volume II GoN, NPC, CBS, Kathmandu, ) Central Bureau of Statistics (2008). Resilience Amidst Conflict: An Assessment of poverty in Nepal, and GoN, NPC, CBS, Kathmandu, September ) Intensive Study & Research Centre (2008) District Profile of Nepal: A Socio- Economic Database of Nepal, Kathmandu, ) Intensive Study & Research Centre (2008) Village Development Committee Profile of Nepal: A Socio-economic Development Database of Nepal, Kathmandu ) International Centre for Integrated Mountain Development (2007). Kathmandu Valley : Environment Outlook. ICIMOD, Kathmandu 2007 Appendix 8 - Social Safeguards Section B Page 37

49 19) JBIC (2003). Special Assistance for Project Implementation on The Melamchi Water Supply Project. Final Report, The Japan Bank for International Cooperation (JBIC), April ) Kanako Yoden (2009). Kathmandu Valley Water Distribution, Sewerage and Urban Development Project: PPIAF- supported Baseline Survey Part I, Final Report (Draft), ADB TA 4893-NEP, University of Tokyo, December ) Melamchi Water Supply Development Board (2000). Kathmandu Valley Water Supply Development Program (including Melamchi); Program Document, Volume 2 of 2, Main Text and Appendices, Kathmandu, December ) Melamchi Water Supply Development Project (2009). Melamchi River Water Diversion Sub- project (Sub- project 1)- Resettlement Action Plan. Project Management Unit (PMU), Melamci Water Supply Development Board (MWSDB), June ) Melamchi Water Supply Development Project (2009). Kathmandu Valley Water Supply and Sanitation Sub-project (Sub- project 2)- Resettlement Action Plan. Project Management Unit (PMU), Kathmandu Upatyaka Khanipani Limited (KUKL). May ) Multi Disciplinary Consultants (P) Ltd. (2002), Situational Analysis of Water Supply in Greater Kathmandu ) Nippon Koei et al. (1999), Socio-Economic Survey Report on Present Water Use and Living Environment in Kathmandu Valley, Project Management Consultancy for Melamchi Water Supply Project, HMG/N Asian Development Bank (Loan No NEP (SF). 26) NGO Forum for Urban Water and Sanitation (2005), Delivering Water to the Poor A Case Study of The Kathmandu Valley Urban Water Supply Reforms with a Special Focus on the Melamchi Project, Thapagaun, New Baneshwor March ) NGO Forum for Urban Water & Sanitation (2008), Profile Appendix 8 - Social Safeguards Section B Page 38

50 ANNEX B-1 Kathmandu Valley Water Supply and Wastewater System Improvement Questionnaire for Socio-Economic HOUSEHOLD SURVEY 1. ADMINISTRATIVE INFORMATION 1.1 Questionnaire No. 1.2 Name of the Settlement (i) House no. (ii) Customer no. (iii) Area no. 1.3 Name of the Street (newly established) 1.4 Name of Enumerator 1.5 Date and time of interview 2. HOUSEHOLD INTRODUCTION 2.1 Name of Respondents 2.2 Relation with the Head of Household (HoHH) 2.3 Name of the Head of Household 2.4 Sex of (HoHH): 1-Male, 2- Female 2.5 Age of HoHH 2.6 Marital Status: 1- Married 2- Unmarried, 3- Widow/widower, 4- Divorced 2.7 Educational Level of HoHH 2.8 Main Occupation of HoHH 2.9 Secondary Occupation of HoHH 2.10 Religion: 1- Hindu, 2-Buddhist 3- Others (specify) 2.11 Ethnicity:1- Brahmin, 2- Chhetri, 3- Newar, 4- Others Type of House: 1) Pakki/ pillar system (concrete roof, brick wall, cement floor) 2). Semi Pakki (concrete roof, brick wall) 3) Others (specify): 2.13 No. of floors in the house: 1) one floor 2) two floor 3) three floors 4) more than three floors (Specify..) Appendix 8 - Social Safeguards Section B Annex B-1: Page 1

51 3. FAMILY DETAILS 3.1 Please provide the following information of your family members (Start from the Head of the Household): S. N. Name of person Relationship Sex Age Education Economic with HoHH (see code) (see code) (see code) activity (see code) CODES 3) Relationship with the HoHH: 1= Household head, 2= Wife, 3= Husband, 4= Son, 5= Daughter, 6= Brother, 7= Sister, 8= Grandchild, 9= Daughter in law, 10= Sister in law, 11= Cousin, 12= Parents, 13= others (specify) 4) Sex: 1= Male, 2= Female 6) Education: 1= Illiterate, 2= Literate but no schooling, 3= Grade I-V, 4= Grade VI-X, 5= Grade 12 completed, 6= Graduate and above, 7= Infant, 8=Not attending the school until the school time 7) Economic Activity: 1= Public service, 2= Private Service, 3= business 4= labor, 5= Abroad labor, 6= Student, 7= None 8= Dependent (children), 9= Housewives 10. Others (specify) ACCESS TO DRINKING WATER AND SANITATION 4.1. Access S.N. Access 1- Yes; 2- No 1 Piped drinking water supply 2 Other source of water supply (specify). 3 Toilet 4 Sewerage and sanitation 5. WATER RESOURSE MANAGEMENT 5.1 Present consumption of water per day in Monsoon seasons, (with constraints of shortage of supply including tenant, if any) Liters ( ) 5.2 Present consumption of water per day in Monsoon seasons, (abundant supply of water including tenant, if any) Liters ( ) 5.3 Present consumption of water per day in Dry seasons, (with constraints of shortage of supply including tenant, if any) Liters ( ) Appendix 8 - Social Safeguards Section B Annex B-1: Page 2

52 5.4 Present consumption of water per day in Dry seasons, (abundant supply of water including tenant, if any) Liters ( ) 5.5 How many people are living with you in your house including any tenants? House members ( ) Persons on rent ( ) 5.6 Total number of rooms in the house: ( ) rooms 5.7 Water requirement for different purposes (Average liters per day) Water requirement Quantity Source of water 1. Cooking and drinking./..(day) 2. Shower, bathroom, toilet./..(day) 3. Kitchen./..(day) 4. Washing the clothes/./..(day) machine 5. Gardening./..(day) 6. Others.../..(day) 6.0 Source of water supply and expenses incurred for it 6.1 Water source Is the present piped water is sufficient for HH use? Yes ( ) No ( ), Capacity of gagri or vessel?..liters 6.2 Source of water and expenses occurred (if piped water is not sufficient) Source 1. Piped water supply by Kathmandu Upatyaka Khanepani Limited (KUKL) 2. Well /Kuwa 3. Hand water pump/ tube well 4.Rainwater harvesting 5. Buying from Tanker 6. Mineral water Jar 7. Others (specify) Inside the house-1 Outside the house -2 Engaged Hours / day Quantity Expenses per month (Rs.) 6.3 Expenses for water treatment Water Treatment (i) Boiling water for drinking (ii) Use filter (iii) Euro guard (iv) Chlorine/Alum/Potash (v) Other Expenses per month Appendix 8 - Social Safeguards Section B Annex B-1: Page 3

53 6.4 If you have installed KUKL piped water system in your house Is the water come from the KUKL pipe connection? Yes ( ) No ( ) Q. no If yes, how many days a week and how many hours a day water is supplied? ( ) days per week hours per week ( ) If no, are you paying the bill? Yes ( ) No ( ) Q. no If yes, how much are you paying for one month? Rs Is there ground tank in your house? Yes ( ) No ( ) If yes, what is the capacity? liters Whether the tank is fitted with stop float valve? Yes ( ) No ( ) Do you have the overhead tank? Yes ( ) No ( ) (i) If yes, what is the capacity?.liters (ii) Whether the tank is fitted with stop float valve? Yes ( ) No ( ) Do you pump the water from the connection? Yes ( ) No ( ) Q. no If yes, how is it pressure? Good ( ) Bad ( ) O.k. ( ) How much time will be required to fill (500/1000/2000/3000/4000/ liters tank)? minutes/hours If you do not pump the water how much time will be required to fill a bucket from the water tap ( liters bucket)? ( ) Minutes/hours How much did you pay the water tariff last month? Rs Who pays the bill? (i) Self ( ) (ii) Have not paid for several months ( ) (iii) Others.. ( ) 6.5 Do you collect rainwater for use? Yes ( ) No ( ) Q. no How do you collect? (i) From roof ( ) (ii) Other ( ) Where do you store? (i) liters bucket ( ) (ii) 500 liters tank ( ) (iii) 1,000 liters tank ( ) Appendix 8 - Social Safeguards Section B Annex B-1: Page 4

54 (iv) Into ground tank ( ) (v) Other What do you use the water for? (i) Drinking ( ) (ii) Cooking ( ) (iii) Washing ( ) (iv) Gardening ( ) (v) Others ( ) Do you treat the water before use? Yes ( ) No ( ) 6.6 Do you need the water supply system of the KUKL to be improved? Yes ( ) No ( ) O. K. ( ) 6.7 How much do you willing to pay for sufficient, regular, and hygienic water supply from KUKL for 10,000 liters per month? Less than Rs. 200 ( ) Up to Rs. 250 ( ) Up to Rs 350 ( ) Up to Rs More than Rs Problems in water supply system Problems/Issues Yes No Comments 1. Shortage of water 2. Low pressure of water supplied 3. Contamination/ low water quality in water supply 4. Other. 6.9 Is there leakage in KUKL water supply system in your area? Yes ( ) No ( ) If yes, how long has it been leaking? Hours/day ( ), Leakage but I don t now ( ) How much wastage of water through leakage? Yes ( ), yes, but I don t know ( )... (Such as water pouring out into road, damp patch on road) 6.10 Do you have a water meter? Yes ( ) No ( ) Q. no If Yes, (i) Yes, it works ( ) (ii) Yes, but not working ( ), so how much are you paying Rs..(month) (iii) Yes, I had a meter, but do not want to install because it was stolen from time to time ( ) (iv) I do not want to install the meter because the water pressure will be very low ( ) If not how much are you paying per month?...rs Would you like to install the meter in your house? Yes ( ) No ( ) Q. no. 7.0 Appendix 8 - Social Safeguards Section B Annex B-1: Page 5

55 If yes, how much amount would you like to pay for meter connection? (i) Rs. 1,500 ( ) (ii) Rs. 2,000 ( ) (iii) Rs. 2,500 ( ) (iv) Rs.3,000 ( ) (v) More than Rs 3,000 ( ) (vi)others.( ) 7.0 SEWERAGE SYSTEM AND SANITATION 7.1 Do you have separate system to dispose wastewater from toilets and kitchens and others? Yes ( ) No ( ) 7.2 What type of sewer system do you have in your area? Sewerage system ( ) Storm water drain ( ) Combined ( ) Others.... ( ) 7.3 Who has built this system? KUKL ( ) Municipality ( ) Ward Committee ( ) Users Committee ( ) Kathmandu Valley Town Development Committee ( ) Department of Roads ( ) Department of Urban Development and Building Construction ( ) Private ( ) Others. ( ) 7.4 When this system was built? Year.. ( ) Don t know ( ) 7.5 If no, what type of system do you prefer to have? i). Separate ( ) ii). Combined ( ) iii). Decentralised ( constructed by local community, group etc.) ( ) 7.6 Do you have septic tank Yes ( ) No ( ) Q. no If you have septic tank, how often do you clean it? Yearly ( ) Rs In between 2-5 years ( ) Rs In between 5-10 years ( ) Rs More than 10 years ( ) Rs Others ( ) Rs If you have cleaned your septic tank, who did it? 7.8.1Municipality ( ) KUKL ( ) Private operators ( ) Others (specify) ( ) Appendix 8 - Social Safeguards Section B Annex B-1: Page 6

56 7.9 Do you have any problems related with sewerage? Yes ( ) No ( ) Q. no If yes, what are the problems? Clogging of pipes ( ) Flooding in the area ( ) Foul smell ( ) Others. ( ) 7.11 How long does it take to solve your problems? within 3 days ( ) within a week ( ) within two weeks ( ) A year ( ) More than a year ( ) Others ( ) 7.12 Do you or any of your neighbors dispose your solid waste into drains? Yes ( ) No ( ) 7.13 Do you want drainage or a sewerage system improved? What maximum amount would you like to pay for the improvement of the sewerage system (At present 50 % of the water bill is charged)? i) 50 % of the water bill as usual ( ) ii) 60 % of the water bill ( ) iii) 70 % of the water bill ( ) iv) Others. ( ) 7.14 What type of toilet does your family use? Type of toilet used 1. Water-sealed toilet with flush 2. Water-sealed toilet without flush 3. Pit latrine 4. Public latrine 5. Neighbours toilet 6. Open space toilet 7. Other.. Please Tick( ) Appendix 8 - Social Safeguards Section B Annex B-1: Page 7

57 8. HEALTH STATUS 8.1. Was any member of your family ill/sick in last year? Yes ( ) No ( ) Q. no If yes, what was the cause? Please indicate the details: Type of disease No. of cases Treatment taken Total expenses per year 1. Stomach problems (dysentery, diarrhea, cholera, worms) 2. Fever 3. Hepatitis (Jaundice) 4. Typhoid 5. Malaria 6. Skin disease 7. Cold (common cold) 8. Others. 9. DIVISION OF LABOR (GENDER) 9.1 Who does the following tasks mostly? Tick ( ) Households Activities Men Women Boys Girls Time spend (hours/day) 1. Fetching drinking water 2. Cooking and cleaning 3. Washing clothes 4. Child care 5. Care of elderly 6. Others 9.2 Do women members of the house have any say in decision making of the following household matters? S.N Issues Yes ( ) No ( ) 1. Financial matters 2. Education of children 3. Health care of children 4. Purchase of assets (land and building) 5. Day to day activities 6. Decision on social function and marriages 7. Others Do women members of the house have the ownership in the following things? S.N. Ownership If yes, please Tick( ) 1. Land 2. House and other structures 3. Keeping money 4. Others.. Appendix 8 - Social Safeguards Section B Annex B-1: Page 8

58 10. COMMUNITY INVOLVEMENT 10.1 Does any member of the household belong to a community group? ( ) Yes ( ) No Q. no If yes, who belongs to which ones? S.N. Membership Sex General member 1 Saving &Credit Male Female 2 Women/Mother group Male Female 3 Water User s Male Committee Female 4 Others.. Male Female Executive member Position 10.3 If there are User Groups in the Community/Wards, please list Does anyone in your household participate in community meetings? S.N. Social activities Sex If yes, please Tick( ) 1 Social/Religious work Male Female 2 Community gatherings/meetings Male Female 3 Political gathering/meetings Male Female 4 Charity/club Male Female 5 Others.. Male Female 11. FACILITIES, INCOME & EXPENDITURE 11.1 Facilities (house owner only) S.N. Items Tick( ) S.N. Items Tick( ) 1 Radio/Transistor 11 Electric stove 2 Television 12 Gas stove 3 Computer 13 Washing machine 4 VCD/VCR/DVD 14 Rice cooker 5 Bicycle 15 Pressure cooker 6 Motorcycle 16 Electric fans 7 Car/jeep 17 Air conditioner 8 Refrigerator 18 Micro wave oven 9 Mobile Phone 19 Other.. 10 Kerosene stove Appendix 8 - Social Safeguards Section B Annex B-1: Page 9

59 11.2 Expenditure Pattern (Monthly Expenditure) S.N. Items Monthly Expenditure (in Rs.) 1 Food (Food and other daily consuming items) 2 Education, health (medicine, doctor s fees, hospital expenses etc.) 3 Electricity bill 4 Water tariff 5 Other.. 6 Total 11.3 Source of Income (Monthly Income) S.N. Items Monthly Income (in Rs.) 1 Agriculture/livestock rearing 2 House rent 3 Trade/business 4 Small scale industry/industries 5 Labor/daily wages 6 Service (Government/private) 7 Pension 8 Remittances (Foreign employment) 9 Other. Total 11.4 In your opinion, what should be done by the government for the better water resource management in the country, particularly in the Kathmandu Valley? 1 Nothing to say 2 Supply hour 3 Available quantity of water 4 Pressure 5 Regularity 6 Maintenance in the Leakage 7 Schedule 8 Quality 9 Others ENUMERATOR S OBSERVATION/COMMENTS Appendix 8 - Social Safeguards Section B Annex B-1: Page 10

60 Part A: Identification SAMPLE QUESTIONNAIRE FOR BUSINESS SURVEY ANNEX B-2 Name of AP Name of Road Location address Date of Survey Surveyed by Nature of business Type of road Data edited by Mobile/permanent Minor/major Part B: Business General Vegetables fruits Restaurants Vehicle Mobile Newspaper Grocery Any store repair shops sellers other Is the business operator the owner or a tenant Owner? Tenant How many people are employed in the business? If the operator is a tenant, how much rent does he pay per month? What is the average profit from the business per day (before payment of rent)? Part C: Hawkers: (tick) Location of hawker: Type of Merchandise Fruit Vegetables Fish Hot food Books & Stationery Clothes Shoe repair Is the hawker mobile or permanent? Mobile = 1; Permanent = 2 How often does the hawker occupy this site? Every day Most days 1-2 days p/w < 1 day p/w Full day Half day Does the hawker pay anyone to allow him to use this site? Yes = 1; No = 2 How much does he pay per day? Who does he pay? What is the hawker s average profit per day (total, before paying for use of the site)? Part D: Vulnerability: Should the business operator or hawker be considered as vulnerable? Yes/No Reason for vulnerability (give details of income, physical vulnerability, etc): Gender Disabled Poverty Minority Other (state) Other (state type) Appendix 8 - Social Safeguards Section B Annex B-2: Page 1

61 ANNEX B-3 Socio-Economic Profile of Distribution Network Improvement (DNI) Pilot Area The DNI Area The DNI pilot area lays in the ward no 7 and some part of ward no 8 of Kathmandu Metropolitan City. The present population of this area is estimated about 20,000 with the households of 4,000. It covers an area about 100 hectares of ward no 7 & 8 of Kathmandu Metropolitan City. The major settlements in this pilot area are Sifal, Chabel, Gagahiti, Bulbule, Jayabageshowri, Mitrapark, Kalopul, Binayak Tole, Katubahal and Panika Tole. Household Survey A total of 219 households were randomly selected for the survey in DNI area from the list of households with meter and without meter provided by the KUKL branch office at Mahankal Chaur. Socio-Demographic Profile of the households The average family size of the DNI area is about 5.6 per family. It is slightly higher than the national average (table 1). The average family size of the Kathmandu Municipality is 4.4 where as the national average is Table 1: Demographic Features of the Sampled Households Study area DNI pilot area No. of Population HH Population by Age Groups (in %) Households Male Female Total size NA & over Total , Source: Field Survey, November 2009 The above table shows that the major population groups of the households lies between the ages of 16 to 45 (55.1%) followed by the ages between 46 to 65 (18.2%). The percentage share of the children below 15 years is about 18%. Out of 219 households interviewed for the survey, 36.1 % were female headed households. Of the total female headed households, about 20.3 % were widow. Social Classification Brahmin, Newar, Chettri are the major ethnic group residing in the DNI pilot area. The population structure of the sampled households shows that Brahmin, Newar, Chettri occupied 41 %, 34 % and 11 % of the total household of the project area respectively. Other prominent ethnic groups are Gurung (5%), and Rai (3%). Appendix 8 - Social Safeguards Section B Annex B-3: Page 1

62 Table 2: Ethnic composition of the households Ethnicity No. Percentage (%) Brahmin Newar Chettri Gurung Rai Lama Others Total Source: Field Survey, November Education Literacy rate is one of the significant indicators of economic and social development status. Out of 219 households which were interviewed, about 93% family members are literate. Table 3 shows the educational level of the household members in the DNI area. Table 3: Education Status of the households DNI Pilot area Illiterate Literate but no schooling Grade I-V Grade VI- X 10+2 complete Graduate & above Infant Not attending school until school time Kindergarten Male Female Total Source: Field Survey, November Economic activities The sampled household survey reveals that most of the household members are engaged in services (18.4%) followed by trade and business (9.9%). About 32 % of the economically active population are student. Other major activities are labor within and outside the country. Similarly, 17% family members are engaged in household works. Details of the economic activities of the sampled household members are given in table 4. Table 4: Economic Activities of the Household Members DNI Pilot area Service (Public) Service (Private) Trade & business Labor Labor abroad Student Dependent (children) House Hold work None Male 48 (3.9) 104 (8.5) 77 (6.3) 17 (1.4) 24 (2) Female (1.6) (4.2) (3.6) (0.3) (0.9) Total (5.6) (12.8) (9.9) (1.7) (2.9) Note: Figures in the parenthesis indicates the percentage Source: Field Survey, November (17) 182 (14.9) 390 (31.9) 15 (1.2) 10 (0.8) 25 (2.1) 2 (0.2) 207 (17) 209 (17) 113 (9.2) 84 (13.6) 197 (16) Appendix 8 - Social Safeguards Section B Annex B-3: Page 2

63 Facilities possessed by the household The households were also asked the type of facilities they have possessed in their residence. The survey found that almost all households have television, mobile, gas stove, pressure cooker and rice cooker. More than 70 % of the households have micro oven, radio/transistor and electric fans. More than 60 % possess computer, VCD/DVD/VCR, refrigerator. Nearly 10 % of the households have the washing machine and car/jeeps. The following table shows the household assets of the project area: Table 5: Facilities posses by the sampled households S.N. Facilities Total households No. of HHs possess Percentage 1 Radio/Transistor Television Computer VCD/VCR/DVD Bicycle Motorcycle Car/jeep Refrigerator Mobile Phone Kerosene stove Electric stove Gas stove Washing machine Rice cooker Pressure cooker Electric fans Air conditioner Micro wave oven Source: Field Survey, November 2009 Access to Safe Drinking Water and Sanitation The piped water is being supplied to different communities, residential areas in the area by KUKL through GI pipe from the Mahankal Chaur reservoir. But the water supplied by KUKL is not sufficient to meet the household demand. Hence, most of the households have another source of water within their house compound like wells, hand pumps etc. It has been reported that almost all households have toilet facilities. But some households (15 %) still lack the sewerage and sanitation facilities. Some households reported that they are suffering from the water borne disease like typhoid, skin disease, fever, jaundice due to the supply of unsafe drinking water by KUKL. The following table 6 provides the status of drinking water supply and sanitation facilities. Table 6: Access to drinking Water and Sanitation Access Yes No Don t No Total know response Piped drinking water supply Hand pump/tube well/well/ boring (other source) Toilet Sewerage & sanitation Source: Field Survey, November 2009 Appendix 8 - Social Safeguards Section B Annex B-3: Page 3

64 Type of House and number of rooms Around 92 % of the sampled families have pakki/ or pillar system house (brick walls, cement floor, RBC/RCC roof), where as 8 % have semi-pakki (made of stone/brick with mud mortar). About 38% of the houses have 2 floors, 37 % have 3 floors and 13 % have more than 3 floors. It has been found that more than 30 % of the houses have 7 to 9 rooms while 10 % of the households have more than 15 rooms in their buildings. This shows that majority of the house owners have provided their rooms for rent. The study revealed that more than 90 % of the sampled households have provided their rooms on rent. The following table7 shows the average number of rooms in the sampled households. Water Consumption Table 7: Average rooms in the sampled households Average no. of rooms No. of Percentage Households Below Percentage More than Total Source: Field Survey, November 2009 It has been found that the total consumption of water excluding tenants is about 480 liters per day in wet seasons while it decreased to 380 liters per day in dry seasons. The per capita consumption is 86 liter in wet seasons and 68 liters in dry seasons. Sucking of water from the main connection Nearly 50 % of the sampled households suck by using electric pump from the main connection of KUKL pipelines. They argue that they could not get the water, if they did not suck using the electric pump. Willingness to pay It has been found that about 50 % of the households were not willing to pay more than NRs 200 for minimum charge for 10,000 liters. About 18 % of the households were willing to pay more than NRs. 500 for the hygienic and regular supply of 10,000 liters per month. The following table 8 shows the number of household willingness to pay different amount for the improved water supply from the KUKL. Table 8: Willingness to Pay for Hygienic and Regular Supply of Minimum Charge of 10,000 Litres of Water Willingness to pay Less Up to Up to Up to More Don t NA for the minimum charge of 10,000 litres than Rs. 200 Rs. 250 Rs. 350 Rs. 450 than Rs. 500 Know No. of Households Source: Field Survey, November 2009 Appendix 8 - Social Safeguards Section B Annex B-3: Page 4

65 Economic profile The field survey findings revealed that the majority of the households depend on more than one source of income for their livelihood. House rent was identified as the main source of income (27.9%) of the interviewed households followed by trade and business in the surveyed area (21.6%). Other major sources of income of the household were service (18.4%), followed by pension (8.6%) and sale of agriculture and livestock products (4.1%). It has been found that more than 90 % of the house had tenant. Out of the total 1,222 household members of the DNI area, 424 (35%) people are actively engaged in the above income generating activities. Among the total economically engaged population, the number of female is 136 (32%) in comparison to male 288 (68%). Poverty status While interview, the respondents were asked about their different income source for their livelihood. It was found that the average annual income of the households was NRs. 370, 144. The average per capita annual income was NRs. 68,545. According to the government national poverty line, the per capita to secure the above poverty level in most of the districts is NRs. 10,000 3 and the household size in the DNI area is 5.6. On the basis of the family size and the minimum income to secure poverty level, the minimum household income was fixed to be NRs. 56,000. Based on this calculation, about 4 household in DNI area were identified as to below poverty line. Their yearly household income falls below NRs. 60,000. Table 9 provided the number of households with the range of average monthly income. Table 9: Average monthly income of the households (in NRs) Income range No. of HHs percent Below NRs. 5, , ,001-15, ,001-20, ,001-30, ,001-40, ,001-50, More than 50, NA Total Source: Field Survey, November 2009 Household Income and Expenditure It has been reported that the household income of the surveyed area derives mainly from services (govt. & private), house rent and trade & business which constitute about 29 %, 28 % and 22 % respectively of the total income. The income from remittances, labor/wages, local farm/livestock income-generating opportunities are limited. Pension is also one of the main sources of income of the households which constitute about 9 % of the total source of income of the surveyed households. 3 which is based on a food consumption basket of 2,124 calories and an allowance for nonfood items of about two thirds of the cost of the basket Appendix 8 - Social Safeguards Section B Annex B-3: Page 5

66 The main features of the reported sources of income and expenditure recorded in the survey (Tables 10 and 11) are as follows: 4 The annual average per capita income of the surveyed DNI area range from a minimum of NRs. 38,571 to a maximum of NRs. 162,000 where as the yearly average per capita expenditure range from NRs. 32,760 to NRs. 92,000. As mentioned above that the major source of income is government and private services (28.9%), house rent (27.9%), trade & business (21.6%). The other source of income mostly listed were pension, remittances and income from labor (e.g. skilled & un skilled labor) within the country and outside the country. With regards to expenditure, it was most frequently reported for food including daily consumption items (47.9%) followed by education and health (28.9%). Table 10: 1 Reported Sources of Income of the Households S.N. Income Source % of total annual income 1 Agricultural /Livestock House rent Trade/ business Self employed/ industries Labor/Wages Services (government/private) Pension Remittances (Labor abroad) Others 3.83 Total 100 Source: Field Survey, November 2009 Table 11: Reported Expenditure by Type of the Households S.N. Expenditure Item % of total annual expenditure 1 Food & daily consuming items Education /health Electricity bill Water tariff Others 15.5 Total 100 Source: Field Survey, November 2009 Gender Status According to 2001 census, about 14 % households have been reported as women headed household. In Kathmandu valley, it was little bit more than the country as a whole i.e. 17% in The current survey in DNI area indicates that about 36.1 % of the households were women headed households. Of the total female headed households, about 20.3 % were widow. 4 It should be noted that the measurement of income and expenditure by means of questionnaire surveys is limited. Questions on income may be seen as an invasion of household privacy, and the data collected is entirely dependent on respondent recall and integrity. Appendix 8 - Social Safeguards Section B Annex B-3: Page 6

67 There is still some difference in the literacy between male and female. It has been found that about 88 % of the female were literate in comparison to 97 % of male population. About 17 % of the women are housewife in the study area. Only 11 % women of the total household s members are involved in the income earning activities compared to 22 % of the male members. They are involved particularly in the service sector, trade and business and labor inside and outside the country. It has been reported that in addition to the economic activities out side the home, women are extensively involved in the households activities like cooking and cleaning, washing clothes, child care, care of elderly etc. The following table 12 shows the household s activities by gender. Households activities Table 12: Household s Activities by Gender Men Women Boys Girls Women & Girls Men, Women, Boys & Girls Men & Women (%) NA Fetching drinking water Cooking & cleaning Washing clothes Child care Care of elderly Source: Field Survey, November 2009 Besides, the respondents were also asked about the involvement of women in decision making of the household matters like in finance, education, health care, purchase of assets, day to day households matters etc. It has been found that women are involved in the decision making of all most all household matters. The following table 13 provides the status of women in decision making process. Table 13: Involvement of women in decision making of the household matters (%) Household matters Yes No NA Finance Education Health care of children Purchase of assets ( land and buildings) Day to day activities Decision on social function and marriage Source: Field Survey, November 2009 In most of the developing countries, the family land and household assets have been owned by male population. In some cases both the male and female owns through inheritance the land and assets. However, from last few years, the ownership of women on land has increased in Nepal due to the government policy of 20 % rebate/concession on the land registration fees while purchasing land from other. It is clear from the table below that almost half of the household s women own the assets like land, house and other structures. Majority of them are also allowed to keep money separately in the bank or elsewhere. Appendix 8 - Social Safeguards Section B Annex B-3: Page 7

68 Table 14: Women ownership of assets (%) Ownership Yes No NA Land House & other structures Keeping money Others Source: Field Survey, November 2009 The participation of women in social, political, religious, community gatherings has increased recent years in Nepal. During the survey in the sampled households, the respondents were also asked about the gender participation in community meetings. The percentage of female alone in social/religious gatherings was slightly more than the men, where as the men alone participation in the community gatherings is much more higher than the female. However, around 50 % of both male and female together participate in the social/religious work. The following table 15 shows the participation status of both male and female in different social activities. Table 15: Participation in the social activities by sex (%) Social activities Male Female Both Male & NA Female Social/Religious work Community gatherings/meetings Political gatherings/meetings Charity/club Others Source: Field Survey, November 2009 Household s Opinion on water supply The surveyed households were asked about their perception regarding the water supply of KUKL. Out of 219 households interviewed, 53.4% households indicated irregular supply of water. About 51 % of the households were not satisfied with the quantity of water supply. Similarly, 26 % were complaining about the water pressure (Tab 16). Table 16: Household s opinion regarding the water supply of KUKL (Multiple answers) S.N. Opinions No. of Percentage respondents (%) 1 Nothing to say Supply hour Available quantity of water Pressure Regularity Maintenance in the Leakage Schedule Quality Others Equal Distribution Source: Field Survey, November 2009 Appendix 8 - Social Safeguards Section B Annex B-3: Page 8

69 The study on Kathmandu Valley Water Distribution, Sewerage and Urban Development made by Kanako Kishi during 2008, found that about 50 %, 39 % and 44 % households of Kathmandu Valley were satisfied with the quantity available, regularity and water pressure respectively. Sewerage and Sanitation When asked about the existence of sewer system in the surveyed area only 12 households reported that there exists sewerage system. None of them reported the existence of combined sewer system in the area. About the problem of sewerage, only 35 (16%) households reported the clogging of sewerage pipes from time to time. The household members were also asked their willingness to pay for the improved sewerage system in the area. About 46 % informed that they want to pay as usual i.e. 50 % of the water tariff or less than Rs 200, where as 11.4 % reported that they are willing to pay up to Rs.250. About 16 % were willing to pay more than Rs. 500 for the hygienic & regular supply of 10,000 liters of water. Other households did not want to comment on this question. It has been found that different agencies have constructed sewer line in the study area. It has been reported that about 57 % of the households used water sealed toilet with flush, where as 42 % used water sealed toilet without flush. Households were also asked about their house connection to the waste water system, majority were unaware of the waste water system about who constructed the system, who operate and maintain the system etc.. About 28 % of the household still dispose their solid waste into the septic tank and majority of them cleaned the tank within 2 to 5 years of period mostly from private persons. Appendix 8 - Social Safeguards Section B Annex B-3: Page 9

70 (A) Daily Average Profit of the Business Shops by Categories in DNI Pilot Area S.N. Location Address Name of AP Nature of Business # 1 Mitra Plaza, Jay Bageshowri,Khadya Bhandar, Mitra park Type of business ## Owner/ Tenant No. of persons employed Rent/month NRs Average daily profit after deducting rent ANNEX B-4 Vulnerability Jitesh Dugar 2 8 Tenant 2 10,000 1,200 No 2 Mitra Plaza, Mitra park Sanjaya Agrawal 2 8 Tenant 1 4,000 1,250 No 3 Mitra Park, Mitra plaza, Bishnu Kirana Bishnu 2 8 Tenant No 4 Mitra Park, Mitra plaza Upendra jaishawal 2 8 Tenant 1 14,000 1,500 No 5 Kalakar Marga, Mitra park Muna Dangi 2 1 Tenant 0 6,000 1,500 No 6 Hira Cold Store, Mitra Park Budhha khadgi 2 1 Owner 0 0 1,000 No 7 Dharma Bhakta Marga 521, Pani Tanki Marga Man Kaji Shrestha 2 1 Tenant 0 4,500 1,000 No 8 Jaya Bageshowri, Rosina Store Tej Bahadur Bhandari 2 1 Tenant 0 5,000 1,000 No 9 Chandra Binayak Marga 550, House no -45, Block no -5 ka 10 Chabel Junction, Chandra Binayak Marga, House no. 42, Block No. 5 ka Surya prasad Joshi 2 1 Owner 0 0 1,000 No Ram Kumar manandhar 2 1 Owner 0 0 1,100 No 11 Chabel Junction, Chakra Path Ms. Ambika Gautam 2 9 Tenant 0 2, No 12 Chandra Binayak Marga Chabel Prabir Kumar Yogi 2 10 Tenant 0 15,000 1,250 No 13 Chandra Binayak Marga, Tayari Poshak, Chabel Rohan Shrestha 2 9 Tenant 0 10,000 1,250 No 14 Chakra Path, Chabel Sabin Shrestha 2 9 Tenant 3 15,000 2,000 No 15 Chandra Binayak Marga, New Ambika Fancy Store, Chabel 16 Chandra Binayak Marga, Bhimsen Mandir, Chabel 17 Chandra Binayak Marga- 286, Block 5 ka, House no. 160, Chabel Bishworaj Lamichane 2 9 Tenant 0 10,000 1,250 No Ms. Jhuma Devi Bista 2 10 Tenant 0 9, No Santosh kumar shah 2 2 Tenant 0 2, No 18 Dharma Bhakta Marga, Sifal Ms. Puni Maya Dural 2 2 & 3 Tenant 0 3, No 19 Mitra Park, Chakra Path Ajaya Kumar 2 11 Tenant 5 4,000 1,300 No Appendix 8 - Social Safeguards Section B Annex B-4: Page 1

71 S.N. Location Address Name of AP Nature of Business # Type of business ## Owner/ Tenant No. of persons employed Rent/month NRs Average daily profit after deducting rent Vulnerability 20 Kutubahal, Lamapokhari-7 Hiralal tamang 2 12 Tenant 0 4, No 21 Chandra Binayak Marga, Ganesh than, Narayani Restaurant 22 Chandra Binayak Marga, Chabahil Medical Ganesh lama 2 4 Tenant 3 7,500 1,350 No Tulsi Joshi 2 13 Tenant 7 5,000 1,500 No 23 Dharma Bhakta Marga, Sifal Junction Ms. Indira maskey 2 13 Tenant 2 5,500 1,500 No 24 Budhanga Marga, Mitra Park Surendra Mohan das 2 13 owner No 25 Dharma Bhakta Marga, Sifal Junction Shiva prasad nepal 2 7 Tenant 0 4, No 26 Chandra Binayak Marga, Ganeshthan Sindhu Books 27 Kutubahal, H. N. 142, B.N. 5 Kha, Kutubahal Marga Bishnu Sharma 2 14 Tenant 2 17,000 1,500 No Babu Lal Shrestha 2 14 Tenant 0 4, No 28 Chabel Junction, Chabel Chakra Path Arun Shrestha 2 14 Tenant 2 10, No 29 Budhanga Marga, Mitra Park Sagar Gautam 2 15 Tenant 1 10,000 1,250 No 30 Jaya Bageshowri, Chakra path (4), 5367, Jya bageshowri Everest Jean Tailoring Center Ratnaman darshandhari 2 16 Owner No 31 Dharma Bhkta marga, Lama Pokhari Dhanman Darji 2 16 Tenant 0 2, yes 32 Chabel Junction, Chabel Chakra path D.B.Thapa 2 6 Tenant 2 9,000 1,100 No 33 Mitra Park, Mitra Park Marga Bhairav Niraula 2 17 Tenant 1 3,000 2,500 No 34 Dharma Bhkta marga, Sifal Deepak Ligai 2 18 Owner ,000 No 35 Chabel, Chakra path Shankar Thakur 2 19 Tenant 1 4, No 36 Dharma Bhkta Marga, Lama Pokhari, Kutubhahal Amiri thakur 2 19 Tenant 0 3, yes (9 persons dependent) 37 Jaya bageshowri Marga Sushil sangat 2 20 Owner 2 0 1,000 No 38 Chandra Binayak Marga, Ganesthan, Chabel 39 Bhandarkhal Marga, Sifal, Jaya Shree Metal workshop Kisun Dev Shah 2 20 Tenant 10 25,000 1,300 No Prakash Gurung 2 21 Tenant 0 2, No 40 Budhanga Marga -85, Mitra park Ujwal Shrestha 2 22 Tenant 3 20,000 1,500 No Appendix 8 - Social Safeguards Section B Annex B-4: Page 2

72 S.N. Location Address Name of AP Nature of Business # Type of business ## Owner/ Tenant No. of persons employed Rent/month NRs Average daily profit after deducting rent Vulnerability 41 Chabel junction, Shree Pashupati Madhyamik Vidyalaya Jitendra Raj Bhandari 2 23 Tenant 4 10,000 2,000 No 42 Jaya bageshowri Marga, Gol Dhunga Saru Shrestha 2 23 Owner No 43 Pani Tanki Marga, Sifal Shree bahadur Khadgi 2 24 Tenant 0 4, No 44 Chandra Binayak Marga, Chabel Ganeshthan Nabin Sekh 2 24 Tenant 2 7, No 45 Jaya bageshowri Marga- 213 Shree Ram ramtee 2 25 Tenant 3 5, yes (Minority) 46 Chandra Binayak Marga, Chabel Ganeshthan - 7 Arjun Prasad Shah 2 26 Tenant 4 12, No 47 Chabel, Chakrapath Ms. Gyanu Shakya 2 27 Tenant 0 9, No 48 Chabel, Mitra Park Deepak Kumar Shrestha 2 28 Tenant 4 20,000 2,000 No 49 Chabel, Chabel chakra path Ram Giri 2 29 Tenant 0 12, No 50 Mitra Park, Chakra path Biren Shahi 2 30 Owner No 51 Chandra Binayak Marga, Ganeshthan,Chabel 52 Chandra binayak Marga, lama Pokhari, Chandra Binayak Cosmetics 53 Chandra Binayak Marga, Lama Pokhari Dipen Bhattarai 2 31 Tenant 0 9, No Shovakar Pokharel 2 32 Tenant 0 4, No Bijaya Nepal 2 33 Tenant 4 10, No 54 Dharma Bhakta Marga, Sifal Dhruba dahal 2 34 Owner 8 0 6,000 No 55 Chabel Stupa, Chabel Kalpana Shrestha 2 6 Tenant 0 9, No Note: # 1= Mobile 2= Permanent ## 1- General store 2- Vegetables 3- Fruits 5- Vehicle repair 11- Hotel & sweets 12-Small hotel 13- Medicine 21- Metals 22- Cement 23- Utensils 31- Electrical 32- Cosmetics 33-Gas depot 6- Mobile shops 15- Cyber 16- Tailoring 25- Shoe repair 26- Bangles 7- Newspaper seller 17- Mobile repair 27- Ornament 8- Grocery 9-Readymade clothes 18- Motor cycle repairing 28-Bathroom fittings 10- Clothes 19- Barber 20- Sweets 29- Tea 30-Motorcycle reconditioning Appendix 8 - Social Safeguards Section B Annex B-4: Page 3

73 (B) Daily Average Profit of Hawkers by Categories in DNI Pilot Area S.N. Location Type of Merchandise 1) Site Occupy Frequency 2) Full/Half day 3) Permanent/ Temporary/ Mobile 4) Restriction to use the site 5) Rent/day NRs To whom to pay 1 Jaya Bageshowri Jaya bageshowri Yuba Club Profit/day NRs Means of selling the product wheel cart 2 Jaya Bageshowri x x 250 cycle 3 Jaya Bageshowri Jaya 900 temporary bageshowri shops Yuba Club 4 Jaya Bageshowri Jaya bageshowri Yuba Club 5 Jaya Bageshowri Jaya bageshowri Yuba Club 6 Jaya Bageshowri Jaya bageshowri Yuba Club 500 temporary shops 300 temporary shops wheel cart 7 Chabel chowk x x wheel cart 8 Chabel chowk x x wheel cart 9 Chabel bus stop x x wheel cart 10 Chabel bus stop x x wheel cart 11 Chabel junction x x 500 Foot path 12 Chabel x x 450 Foot path Note: 1) Fruit (01); Vegetables (02) Fish (03) Hot Food (04) Books & Stationary (05) Peanut (10) 2) Everyday (01) Most days (02) 1-2 days p/w (03) 3) Full day (05) Half day (06) less than 2 hr (07) 4) Mobile (1) Permanent (2) Temporary (3) 5) Yes (1) No (2) < 1 day p/w Clothes (06) Shoe repair (07) Shoes (08) Tailoring (09) Appendix 8 - Social Safeguards Section B Annex B-4: Page 4

74 Photographs of Shops, Business and Hawkers in DNI Pilot Area ANNEX B-5 Photo 1: Vegetable sellers in Jayabageshowri area Photo 2: Hot food shops of hawkers at Chabel buspark Photo 3: Hawkers selling readymade clothes at Chabel Junction, Chakrapath Photo 4: Hawkers in Jayabageshowri area Photo 5: Hawkers selling readymade clothes in Chabel Buspark Photo 6: Hawkers at Jayabageshowri Mandir Appendix 8 - Social Safeguards Section B : Annex B-5: Page 1

75 Photo 7: Shops in inner road of Mitra park, Chabel. Photo 8: Shops near Boudha Stupa, Chabel, Chakrapath Photo 9: Shops at Chabel Chakrapath Photo 10: Shops at Inner road to Ganeshthan Temple Photo 11: Shops at Inner road of Chabel Photo 12: Shops at Chabel Chakrapath Appendix 8 - Social Safeguards Section B : Annex B-5: Page 2

76 Kathmandu Upatyaka Khanepani Limited (KUKL) Project Implementation Directorate RECEIPT OF COMPENSATION PAYMENT ANNEX B-6 Name of the Affected person Type of shops/ business Address of the AP Shops/ business registered no. Citizenship No. Total amount of compensation (in NRs.) Check No. Approved by Recommended by Written by PD/PID DSC RS A/C section I have received the above compensation for the permanent disclosure/temporary disclosure of my shops due to construction of roads for.days. Compensation recipient Mr/Ms Signature Date: Appendix 8 - Social Safeguards Section B : Annex B-6: Page 1

77 SECTION C Implementation Progress of Resettlement Action Plan under Loan 1820-NEP 1.1 Current Status of Land Acquisition 1. The proposed Kathmandu Valley Water Supply and Wastewater System Improvement includes work in the 3 districts of Kathmandu, Lalitpur and Bhaktapur. It includes the water supply feeder mains and the construction of 5 new reservoirs at Arubari, Mahankal Chaur II, Balaju, Bansbari and Khumaltar. The land for the service reservoirs and pipeline routes has been acquired under Loan 1820-NEP Subproject-2, although some compensation payments are still outstanding. About 22 owners (30 parcels) of the reservoirs sites and pipeline routes have not yet collected their compensation due to various reasons. Table 1 shows the status of unpaid parcels and the amount to be compensated. The pipelines in the table are to be constructed under Loan 1820 MWSP Subproject-2 and the reservoirs under the proposed project. Additional details are provided in Annex C-1. Table 1: Status of Unpaid Parcels and Amounts (December 2009) S.N. Component Total private parcels 1 Pipeline Unpaid Parcels Total amount (NRs) Remaining amount (NRs) % remaining compensation (NRs) 1.1 Sundarijal ,700, , Gokarna ,548,254 3,857, Nayapati ,064,414 2,383, Baluwa Suntakhana ,782 2, Sub Total ,093,512 6,852, Reservoirs 2.1 Sunakothi ,314,237 2,321, Balaju 2 0 4,824, Arubari ,354,300 2,242, Bansbari ,747, Mahankal Chaur ,374, , Sub Total ,615,417 4,680, Grand Total ,708,929 11,533, Source: Kathmandu Valley Water Supply Management Board 2. Kathmandu Valley Water Supply Management Board (KVWSMB) is responsible for compensating the unpaid land owners of different pipeline routes and reservoirs sites. Similarly, the squatters and encroachers presently living on the different reservoirs sites need to be compensated according to Resettlement Framework prepared for Loan NEP: MWSP Subproject-2 under. It is the responsibility of KVWSMB to clear and secure the reservoirs site. The squatters should be relocated to other sites or compensated before implementation of new project. Appendix 8 - Social Safeguards - Section C : Page 1

78 1.2 Land Acquisition History of Melamchi Water Supply Project 3. The Melamchi Water Supply Project (MWSP) is designed to divert water from the snow-fed Melamchi River in Sindhupalchowk District in order to overcome current chronic water supply shortage in the Kathmandu Valley. In the first phase 170 MLD will be diverted to Kathmandu from the Melamchi River. Similarly, in the second and third phase there is a provision to increase the flow by an additional 170 MLD each from Yangri and Larke rivers bringing the total additional supply to the Kathmandu Valley to 510 MLD. 4. The original loan 1820 (SF) for MWSP was approved by the ADB on 28 November 2000 and became effective from December In December 2000, a Resettlement Plan was prepared which was updated in August 2001 by NIPPON KOEI Co. Ltd. in association with TAEC Consult P. Ltd. and NESS (P) Ltd. for the Melamchi Water Supply Development Board (MWSB). The Board received the approval letter to initiate the land acquisition process for Melamchi Water Supply Project from the Ministry of Physical Planning and Works on 18 December 2000 (2057/09/03). 6. The Resettlement Action Plan for Melamchi River Water Diversion, (Subproject-1) was updated by the MWSDB Project Management Unit (PMU) in June Similarly, the Resettlement Action Plan for Kathmandu Valley Water Supply and Sanitation, (Subproject-2) was updated by Kathmandu Upatyaka Khanepani Limited (KUKL), PMU, in May The major land acquisition notices and collection of compensation notices for the water supply reservoirs and pipelines under MWSP Subproject-2 in the Kathmandu Valley were published on different dates in the government newspaper as below:- 8. Publication of land acquisition notice for reservoirs and pipelines: /09/13 (2001/12/28); 2059/02/31 (2002/06/14); 2059/06/19 (2002/10/05); 2060/07/13 (2003/10/30). 9. Publication notice for collection of compensation: /01/15 (2002/04/28); 2059/03/19 (2002/07/03);); 2059/03/31 (2002/07/15); 2060/03/10 (2003/06/24); 2060/03/28 (2003/07/12); 2061/03/09 (2004/06/23). 10. MWSB started to distribute compensation for land acquired on 13th March Compensation for residential, businesses, structures and trees/ plants plus damages caused during construction continued until April The amount of compensation was determined by the respected District Administration Office, Compensation Determination Committee. From May 2009, the MWSB handed-over all resettlement and compensation related work for MWSP Subproject-2, which included BDS pipelines and reservoirs in the Kathmandu Valley, to the Kathmandu Valley Water Supply Management Board (KVWSMB). 11. The Kathmandu Valley Water Supply Management Board (KVWSMB) is the regulator and asset owner for the water supply and wastewater system in the Kathmandu Valley and is responsible for acquiring private land and other properties for the project. KVWSMB is also responsible for the management of already acquired land and facilitates The concerned District Administration Offices (DAO) is responsible for the payment of compensation to the original land / property owners of the different reservoirs sites and transmission line routes from Sundarijal to Gokarna, Arubari, Mahankal Chaur. In addition, KVWSMB is also responsible for providing reasonable compensation package to squatters or encroachers living on different reservoir sites and pipeline routes. The number of affected structures belonging to the squatters and encroachers and tentative budget for resettlement and Appendix 8 - Social Safeguards - Section C : Page 2

79 rehabilitation has been presented in (Annex C-2), their socio-economic profile (Annex C-3), photographs has been presented in (Annex C-4). 12. The compensation for the squatters has been estimated on the basis of the Resettlement Framework approved by the cabinet for MWSP in Compensation payments to these encroachers should be completed under Loan 1820-NEP before commencement of the proposed project. 1.3 Legal Framework Legislation 13. Prior to 1990, the government had no constitutional obligation to pay compensation for the acquisition of private assets. There was no right to receive compensation for private property. The Constitution of Nepal (1990), Article 17 established the right to property. In addition, the fundamental rights of a citizen were strengthened by the Interim Constitution of Nepal (2007), Article The Constitution 14. The Interim Constitution of Nepal (2007), Article 19 (1) guarantees the fundamental right of a citizen, i.e. right to acquire, own, sell and dispose of the property. Article 19 (2) describe that the state cannot acquire the property of any person except in case of public interest. Article 19 (3) also states that compensation shall be provided for any loss of individual property for public interest Land Acquisition Act 15. The Land Acquisition Act (1977) specifies the procedures for land acquisition and compensation. The Act empowers the government to acquire any land for public interest or for the execution of any development works. There is a provision of Compensation Determination Committee (CDC) under the chairmanship of Chief District officer which will fix the rate of compensation for the affected property. The other members in the committee are the Chief of Land Revenue Officer, representative from District Development Committee (DDC), concerned Project Director/Manager. The committee can also invite representatives from among the affected persons, representative from affected VDC/Municipality. 16. The basic function of the CDC is to review the verification of lands to be acquired, review and determine the compensation rate, identify the proper owners, distribution of compensation and address the issues related to land acquisition and compensation distribution. District Administrative Office (DAO) is also responsible to notify the public regarding the details of the land area, structure affected and other assets affected in the concerned VDC/Municipality for project purposes. 17. The Land Reform Act (1964) is relevant in the compensation distribution modality. It specifies the compensation entitlements for the registered tenant. Where the tenancy right is legally established, the owner and tenant each will be entitled to 50% of the total compensation amount. 18. The Section 42 of the Land Reform Act states that Guthi (religious/trust) land acquired for development work must be replaced with another land. Appendix 8 - Social Safeguards - Section C : Page 3

80 1.4 ADB Resettlement Policy 16. According to the ADB new safeguard policy statement (June 2009), the basic objectives of the safeguards requirements are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. ADB s main policy guidelines are: In voluntary Resettlement (IR) should be avoided wherever possible; Where IR is unavoidable, minimize involuntary resettlement by exploring project and design alternatives; Enhance or at least restore the livelihoods of all displaced persons in real terms relative to pre-project levels; Improve the standards of living of the displaced poor and other vulnerable groups; Gender analysis is required to identify related resettlement impacts and risks; Resettlement Plans (RP) should be prepared in full consultation with affected persons (APs), host communities, and concerned non-governmental organizations (NGOs) including disclosure of the RP and project related information; Preference will be given to land-based resettlement for displaced persons whose livelihoods are land-based. However, if the land is not the preferred option or the land is not available at reasonable price, the APs will be provided opportunities for employment, or self employment, in addition to the reasonable cash compensation for land and other assets lost; Cash compensations for the loss of structures, other assets and incomes should be based on full replacement cost; Absence of formal legal title to land or non-recognized or recognizable claims to such land by the affected persons should not be a bar to compensation; The rate of compensation for land, structures and other assets should be calculated at full replacement cost on the basis of fair market value; transaction cost; interest accrued; transitional and restoration cost, and other applicable payments, if any. All compensation payments and related activities must be completed prior to the commencement of the civil work; Special attention to be paid to the needs of vulnerable groups especially those below the poverty line, the landless, the elderly, women and children and indigenous people and those without legal title to land; 1.5 Bridging the Difference between Government and ADB Policies 17. In most cases, the legal framework of the Government of Nepal and ADB policy on resettlement aim at achieving the same overall goals such as avoiding involuntary resettlement as far as possible. Where displacement is unavoidable, the living status of the affected people shall be improved at pre-project condition at no cost to themselves. However, Appendix 8 - Social Safeguards - Section C : Page 4

81 the resettlement principles adopted in this project to bridge the gap between ADB Policy and GoN policy, are as follows: Ensure resettlement at replacement cost; Compensation and resettlement assistance to all affected persons irrespective of titles; Compensation for the lost business, disruption of business enterprise; and Avoid private land, house / structures and other assets; Appendix 8 - Social Safeguards - Section C : Page 5

82 Status of Land Acquisition for Melamchi Water Supply Project (Subproject 2) (January 2010) ANNEX C-1 S.N. Component Total acquired area (ropani) Compensate d area (ropani) Remaining area to compensat e (ropani) % of Compensate d area Ownershi p certificate Total amount NRs Compensa ted amount NRs. Remaining amount NRs. % compensa ted NRs Paid plot s Remainin g Tota l plot s Remark s 1 Reservoirs 1.1 Sunakothi Katunje Balaju Thaiba Tigne Arubari Bansbari Mahankal Chaur Sub Total Pipeline govt govt Sundarijal govt 2.2 Gokarna Nayapati govt 2.4 Baluwa Suntakhana Katunje Sub Total Grand Total Note: 1)Total of 247 land parcels of Nilbarahi VDC had been released by MWSP dated 2064/2/16 2) Total of 67 land parcels of Dhapakhel VDC had been released by MWSP dated 2064/2/16 3) Land required for Tigne reservoir comes from land acquired from Nilbarahi VDC. Similarly, land for Bansbari reservoirs comes from Khadka Bhadrakali 4) *Total land compensated for katunje reservoir and pipelines is ( for reservoir and for pipelines) whereas land ownership certificate is obtaine only for Ropani 5) #Land required for Arubari and Mahankal Chaur II reservoirs and Baluwa Suntakhana pipeline come from the land required from Jorpati VDC ( ropani) 6) Land Ownership certificate obtained for Sundarijal and Nayapati include the pipeline and Adit Access road also Appendix 8 - Social Safeguards Section C : Annex C-1 :Page 1

83 ANNEX C-2 (A) Affected Structures in Pipeline Routes and Reservoirs Sites with Cost Estimate 1. Affected Buildings / Structures The following is the list of affected buildings/structures and the number of families living in the reservoirs: Table 1: Affected Buildings and Structures in reservoirs and pipelines Reservoirs/ Pipeline Buildings/Structures Remarks (no.) Arubari reservoir One (1) 2 and ½ storey semi permanent structures. The owner has collected 50 % compensation for the house. Mahankal Chaur II reservoir Nine (9) # one permanent structures where cattle s are kept by the land owner # Other 8 structures are shed type where 11 families are living. Basbari reservoir Five (5) 3 families are living in 5 temporary sheds Khumaltar reservoir One (1) 1 permanent structure has been constructed recently WTP, Sundarijal to Gokarna pipeline 0ne (1) 2. Tentative budget estimate 2.1 Compensation for Privately-Owned Buildings 1 family living in the temporary structure The cost of structures are based here on the discussion with the affected persons. However, the rates will be determined by Compensation Determination Committees. The following replacement value are very tentative for the budget purposes: Table 2 shows the various cost estimates for acquisition of private buildings / structures. These are summarized as follows: Table 2: Compensation Estimates for Privately-Owned Structures Reservoirs/ Number of No. of Total Cost Remarks Pipelines structure family (NRs.) Reservoirs ,650,000 2 permanent, 1 semi -permanent structures and other 13 sheds Pipeline ,000 Temporary structure Total ,800,000 Cost estimate for compensation of privately-owned buildings is NRs.2,800, Rehabilitation Support This cost item covers two support measures for the affected individuals and households: displacement allowances; and support with alternative income generation and training in occupational/life skills. 2.3 Rehabilitation Allowances The Entitlement Framework (MWSP, 2000) provides for two types of allowances (housing and business displacement allowances), as well as rental stipends for displaced occupants of rented accommodation. Appendix 8 - Social Safeguards Section C Annex C-2-Page 1

84 Housing and business displacement allowances are based on nine month's local wage rate. The cost estimated here for budget purpose is the current year wage rate (Rs 275). It is recommended that 10% annual escalation should be adjusted while calculating displacement allowances in future. Displacement allowances therefore amount to NRs 1,262,250. (270 days x 275 = NRs 74,250 x 17 families = NRs.1, 262,250) Cost estimates for these allowances for the affected households in the reservoir and pipelines are shown below. Table 3: Rehabilitation Allowances Allowance NRs. Housing 1,262,250 Cost estimate for displacement allowances for the squatters/encroachers living in reservoirs amounts to NRs. 1,262, Income Generation and Life Skills This item covers support to severely affected persons with the reestablishment of their livelihoods, the development of new income-generating opportunities and training in life skills. It is envisaged that the work will be undertaken by suitably qualified local NGOs, with support from PID and other government line agencies. The cost is based on the number of households severely affected (14 household/encroachers) by the project at an average of NRs.20, 000 per Household. Total costs amount to NRs. 280, Total Cost Estimate The total cost estimate for the structures, rehabilitation and the income generation and life skills activities for the on going ADB 1820 loan made up as follows: Table 4: Summary of Compensation Costs Item Total cost (NRs) Privately owned structures 2,800,000 Rehabilitation allowances 1,262,250 Income Generation and life skills 280,000 Contingencies (10 %) 434,225 Total Cost 4,776,475 Appendix 8 - Social Safeguards Section C Annex C-2-Page 2

85 Socio-Economic Survey of the Squatters and Encroachers in the Pipelines Routes and Reservoirs Sites Household Socio-economic Characteristics of Encroacher S. N Location/ Name of the HHs head (Squatters /Encroachers/APs) Living in the govt. land ANNEX C-3 HH size/ gender Age-group Occupation/Income Source Annual Income (NRs) Total M F Main Allied Cash Per capita A. Mahankal Chaur II, Reservoir 1 Mr. Kami Chiring (squatter) 9 yrs Painting, labor x 48,000 12,000 2 Mr. Arjun Rai (squatter) 6 yrs Painting, labor 50,000 12,500 3 Mr. Tenzing Sherpa (squatter) 10 yrs Mason, labor (both husband & wife) 4 Mr. Lal Bdr. Ranamagar 10 yrs Labor (both husband & (squatter) wife) 5 Mr. Rabi Lama (squatter) 5 yrs Husband- peon in Medical College Wife- working as labor occasionally 90,000 18,000 90,000 22,500 60,000 20,000 6 Ms Urmila Rai (squatter) 4 yrs Labor 60,000 30,000 7 Mr. Pokharel Magar (squatter) Labor in wollen carpet Anyhow industry manage to 8 Mrs. Kusum Pulami Magar (squatter) 9 Mrs Chatramaya Shrestha (squatter) Labor in house construction 9 yrs Agriculture in govt. land, labor feed the family 60,000 20,000 Anyhow manage to feed 10 Mrs. Pancha Kumari Lama 2 yrs Labor 50,000 16,667 (Divorced) (squatter) 11 Mrs Khadka Maya Shrestha (squatter) 9 yrs Vegetable shops Labor 100,000 14,286 B. Bansbari Reservoir 1 Mrs. Sabitri Pariyar (squatter) Some male and female member of the household Very difficult to survive work as Labor occasionally 2 Mr. Mangal Pariyar (squatter) Some male members of the household work as Labor occasionally Very difficult to survive 3 Mr. Rabi Pariyar (squatter) Some male members of Very difficult to Appendix 8 - Social Safeguards Section C : Annex C-3: Page 1

86 S. N Location/ Name of the HHs head (Squatters /Encroachers/APs) C. Khumaltar Reservoir 1 Mrs. Krishna K. Shrestha (Encroacher) Mrs Shrestha own one permanent house costing Rs12,000,000 and land which is already acquired by the government (melamchi) for reservoir purpose. However, Mr. Kedar Man Limbu (husband of the land owner) informed that they have not collected the compensation. He is not satisfied with the rate of Rs. 800,000 per ropani determined by CDC almost 7 yrs ago. Living in the govt. land House constructed last year. The land has been acquired by the government through land acquisition notice (though the land owner has not collected compensatio n) D. Sundarijal- Nayapati pipeline 1 Santosh Lama Constructed a temporary house in the government land (land owned by Melamchi) HH size/ gender Age-group Occupation/Income Source Annual Income (NRs) Total M F Main Allied Cash Per the household work as Labor occasionally survive capita Retired 150,000 37, Poultry farming Agricult ure Do not want to mention the income Appendix 8 - Social Safeguards Section C : Annex C-3: Page 2

87 ANNEX C-4 Photographs of Buildings/Structures constructed in the reservoirs and Pipeline corridor Photo 1: Semi-permanent house located in Arubari Reservoir, Jorpati VDC Photo 2: Newly build house in Khumaltar Reservoir, i Sunakothi VDC, Lalitpur District Photo3: Newly build house in Khumaltar Reservoir, Photo 4: Shed constructed recently on the Sundarijal Sunakothi VDC, Lalitpur District Nayapati pipeline corridor Photo 5: Semi permanent structure lie in the Reservoir site Mahankal Chaur II Reservoir Photo 6: Squatters living in the Mahankal Chaur II Appendix 8 - Social Safeguards Section C : Annex C-4: Page 1

88 Photo 7: Squatters house in Mahankal Reservoir, Jorpati Chaur II Reservoir, Jorpati Photo 8: Squatters house in Mahankal Chaur II Photo 9: Vegetables farming by the squatters in Mahankal Mahankal Chaur II Reservoir Photo 10: Agriculture farming by Squatters Chaur II, Reservoir Photo 11: Squatters settlement in Bansbari Reservoir Reservoir Photo 12: Squatters settlement in Bansbari Appendix 8 - Social Safeguards Section C : Annex C-4: Page 2