NEPAL ELECTRICITY AUTHORITY

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized NEPAL ELECTRICITY AUTHORITY ENGINEERING SERVICES RESETILEMENT ACTION PLAN Khimti Dhalkebar 220 kv TransmissionLine Project Updated Report (Volume 1: Main Text) Submitted to TransmissionLine/Substation Construction Department DurbarMarg,Kathmandu PreparedandSubmittedby Environmental&SocialStudies Department AdwaitMarg,Kathmandu Phoneno , Fax: March2014

2 Table of Contents EXECUTIVE SUMMARY... II 1.0 INTRODUCTION STUDY METHODOLOGY DESKSTUDY FIELD VISIT PROJECT DESCRIPTION OF THE PROJECT BACKGROUND PROJECT LOCATION PROJECT FEATURES IMPACT ASSESSMENT AND MITIGATION MEASURES PROJECT IMPACTS Impact Categories Physical Displacement of Households Severely Project Affected Families IMPACTS MITIGATION MEASURES Cash Assistance Equal to Minimum Wage Rate Resettlement and Rehabilitation (R&R) Assistances Livelihood Restoration Package COMPENSATION PAYMENT CONSULTATIONS AND COUNSELING VULNERABLE GROUPS DISCLOSURE INSTITUTIONAL ARRANGEMENT, IMPLEMENTATION SCHEDULE AND GRIEVANCE REDRESSING INSTTITUTIONAL ARRANGEMENT IMPLEMENTATION SCHEDULE GRIEVANCE REDRESS MECHANISM ESTIMATED BUDGET List of Tables: Table 3.1: Salient Features... 6 Table 4.1: No. of Owners Affected by Loss of Land and Structures... 8 Table 4.2: No. of Owners Losing more than 25% Land by Tower Pads... 9 Table 4.5: Livelihood Restoration Measures to SPAFs Losing > 25% Land Table 4.6: R&R Assistances for Displaced SPAFs Table 4.7: Livelihood Restoration Package for Project Affected Families (PAFs) Table 4.8: Compensation Payment Status in the Project, March Table 4.9: Compensation Paid and Pending Amount Table 5.1 Proposed Implementation Schedule of RAP Table 6.1: Estimated Budget for Implementing the RAP i

3 Executive Summary The 220 kv double circuit 73 km long KhimitDhalkebar Transmission Line Project is under construction aiming to evacuate the power generated from the various ongoing and proposed hydropower projects to be developed in the north east and central hills of Nepal. The transmission line starts from Khimti of Dolakha District and ends atdhalkabar of Dhanusa District. The proposed transmission line alignment traverses through the Dolakha, Ramechhap, Sindhuli, Mahotari and Dhanusa districts of Central Development Region. This updated Resettlement Action Plan (RAP) has been prepared replacing the previous Abbreviated Resettlement Action Plan (ARAP) prepared in 2006 by NEA. This plan adopts the policyprovisions outlinedin theoperational Manual of Environmental Social Impact Assessment developed by NEA in The changes in population, migration and new settlements in the Project area as well as the increased impacts in land, houses and properties by the Project made it necessary to update the RAP. In addition, the Project s approach in land acquisition on full purchase for a section of ROW for road construction close to the market area of Sindhuli impacting sizable amount of land and quite a high figure of compensation made it mandatory to update the previous ARAP which recorded very limited impacts in The RAP, based on the latest information available from the Project, has assessed the project s impacts more precisely also suggesting realistic mitigation measures to address the impacts. In total, 1080 families of 3 districts have been identified as affected families by the Project which include 440 families of Sindhuli district, 584 families of Ramechap and 56 families of Dhanusha district. Among the PAFs affected by the Project, the highest numbers of land owners accounting 773 will be affected by Right of Way (RoW) of the transmission line followed by 131 owners who will be affected by tower pads and 53 families who will be losing 65 structures in all 3 districts. The ROW acquisition by the Project will also displace 8 families in Sindhuli raising the number to a total of 61 displaced families. The RAP indicates that 94 families will be affected more adversely by the Project who are included in the category of Severely Project Affected Families (SPAFs). Of them, 33 families lose 25% or more land to the Project whereas 61 families will be physically displaced from their original place of residence as they need to be resettled due to the impact of transmission line. Across the districts, 47 SPAFs are in Sindhuli, 36 in Ramechap and 11 in Dhanusha. Various mitigation measures have been proposed to minimize or neutralize the adverse impacts faced by the project affected families. In case of SPAFs, specific mitigation measures have been proposed in addition to normal livelihood improvement supports provided for all affected families. Keeping in view the social safeguard measures specified in the Operational Manual, 2009, different impacts mitigation measures have been proposed. ii

4 These include mainly the compensation of affected land and other properties at replacement value, and Resettlement and Rehabilitation (R&R) assistances comprising of the followings; Cash assistance equal to minimum wage rate Transportation allowances Rental allowances Hardship allowances, and House construction allowance The SPAFs and PAFs will be provided various entitlements as per the policy outline provided in the Operational Manual of Environmental Social Impact Assessment. The SPAFs will be provided total amount of Rs each against R&R assistances. Besides, a common livelihood restoration package comprising of skill training and agricultural inputs use training has been proposed for all PAFs. The Project is advised to commence the implementation of activities proposed in the updated RAP from mid April 2014 and complete all tasks within June A major task of the Project is to complete the compensation payment to the affected families as well as R&R assistances and livelihood restoration measures. The Environmental and Social Studies Division (ESSD) of NEA which has prior work experience in the Project needs to be engaged fully by the Project to implement the RAP beginning April By deploying the competent field staff, the Project requires to work in war footing in order to accomplish the pending RAP implementation which is strongly linked with the Project s physical construction. iii

5 1.0 Introduction Nepal, one of the poorest countries in the world, continues to face severe power shortage, mainly due to inadequate power generation to meet the increasing demand of hydro power for all purposes ranging from household use to industrial operations and infrastructures development. The annual peak electricity demand is increasing with an average rate of about 10% annually leading to unprecedented load shedding since last one decade and this situation is expected to continue for next few years until sufficient power is generated from the projects that are currently under construction or in pipelines. The severe power shortage with a load shedding of up to 18 hours a day, in some years, has adversely impacted the development potential of the nation causing too much of inconveniences beyond tolerable level to the general public. The annual peak power demand of Nepal was estimated at 946 Mega Watt (MW) in 2010/11 whereas the peak time available electricity was only 706 MW (during wet season) resulting in a net deficit of more than 200 MW electricity during wet season (including the electricity imported from India). However, the dry season availability was only about 300 MW resulting in about 650 MW deficit, which was more than double of the supply capacity. To cater present increasing demand of hydro power in Nepal, the new hydropower projects needs to be constructed and the existing capacity of the transmission system needs to be upgraded or new transmission line should be constructed. In view of future system development plan, Nepal Electricity Authority (NEA) proposed Khimti Dhalkebar 220 kv D/C Transmission Line Project to evacuate the power generated from Tamakoshi River and other potential hydropower projects of this region. This transmission line will also be connected to the two existing Independent Power Producer (IPP) namely Khimti and Bhotekoshi with a view to export power to India as well as to cater the power to the load centers of eastern region of the country. The Project is financed by the World Bank to meet the objectives of GON power evacuation system in extending access to electricity supply to a larger percentage of the population. Since the KhimtiDhalkebar (KD) Transmission Line Project is being funded by the World Bank, it has tobe implemented in line of the "the Operational Manual of Environmental and Social Impact Assessment, 2009 prepared by the NEA for Additional Financing of the Power Development Project. In compliance with the Policy Requirements, a separate Social Impact Assessment (SIA) report was prepared focusing on social baseline, impacts, mitigation measures and social monitoring of Khimti- Dalkebar 220 kv transmission line project which was updated later. The World Bank review mission in the past recommended for the preparation of Abbreviated Resettlement Action Plan (ARAP) to address limited impacts of the Project identified in the earlier stage. However, it was noted during implementation that the Project s impacts both in terms of affected families and properties were significantly higher than what were reported by the ARAP in In addition, there has been some change in Project s strategy to acquire the lands and properties in a short stretch of RoW in Sindhuli with a different approach to address the loss of land and structures. In view of these changes, t the preparation of this updated Resettlement Action Plan(RAP) was considered essential which assesses all the Project issues and impacts suggesting mitigation measures that should be implemented to address the adverse impacts of project affected peoples (PAPs).. 1

6 The Environmental and Social Studies Department (ESSD) of NEA collected the latest available information and updated this document as per the contract signed between Transmission Line/Substation Construction Department and the ESSD. Public hearing programs were organized at Manthali of Ramechap district and Dhalkebar of Dhanusha district in order to provide opportunity for the maximum participation of local people and to discuss the findings of the EIA & SIA study and to collect the issues/ concerns of local people on resettlement. The relevant issues raised by local people and representatives of the VDCs and line agencies are incorporated in final EIA & SIA and ARAP report. Nine focus group meetings, indepth interviews and public consultation were organized specially for relocates to explore the issues and concerns related to house relocation. However, for this updated RAP, all the information about project s impacts i.e affected people, lands, and structures as well as the compensation value and amount paid were collected from the Project. The updated RAP mainly focuses on the impacts of the Project on Project Affected Families including those severely affected (those losing more than 25% of land) and households displaced due to loss of structures. The RAP also provides information on compensation status as well as Resettlement and Rehabilitation (R&R) Assistances and livelihood restoration measures to all PAFs, The Project s adverse impacts and mitigation measures are presented in Chapter V of this plan. 2

7 2.0 Study Methodology 2.1 DESK STUDY The desk study includes the review of technical reports of the project, topo maps of 1:25,000 scales, district profiles of affected Districts and VDC profiles. During the desk study, all the necessary information were collected from the available secondary sources. All relevant information associated with socio-economic and cultural environments were reviewed and analyzed. On the basis of the reviewed information, data gaps were identified and the techniques described below were used to generate the remaining data. 2.2 FIELD VISIT The field investigation was carried out by a multi-disciplinary team of experts, which comprised of Sociologist, Economist, ACRP expert and Surveyor. The fieldwork was conducted in February-March, April-May and October- November and lasted for about 60 days in Team traversed in project area to collect information on existing socioeconomic &cultural environment of theprojectaffectedareaand affected households.the required baseline information was collected during the field survey by using the following techniques. Collected data were tabulated and analyzed in computer and output tables are presented in the report. Questionnaire interviews, Checklists, Focus group discussions Questionnaire Interview Pre-tested questionnaires were designed and applied by a trained team of enumerators to solicit the information from the affected families. Census survey was conducted for 17 households only which were affected by Angle Towers as per the design while preparing the ARAP in Two types of questionnaire were designed and used for the survey. The first set of questionnaire was designed to collect information ondemographic characteristics,basichealth conditions, income and expenditure,availabilityof infrastructure facilities, water and energy related issues, information about project, attitude towards settlement and expectations from the project. The second set of questionnaire was used to collect information on t gender issues which was used in the field survey to analyzethe status of woman, their attitude towards the project, the possible impacts on woman due to the implementation of the project and other gender issues. Checklist Key informant survey was also a major survey instrument, which was employed during the field visit to gather socio-economic and cultural information of the people, Two sets of checklists were designed. The VDC level checklist was designed to collect information on basic demographic and migration patterns, food sufficiency and cropping 3

8 patterns, existence of user's groups/committees, public facilities and infrastructure, labour force availability, existence of archaeological and religious places and existence of disadvantaged groups and ethnic minorities. The agricultural checklist was designed to collect the price rates of various agricultural products cultivated in the project affected VDCs and Municipality. This volume of the RAP contains only the main text. The Chapter Plan of the Report is as follows. Executive Summary Chapter 1: Introduction Chapter 2: Methodology Chapter 3: Brief Description of the Project Chapter 4: Impact Assessment and Mitigation Measures Chapter 5: Institutional Arrangement, Implementation Schedule & Grievance Redress Mechanism Chapter 6: Estimated Budget Focus Group Discussion Group discussions were organized to give special attention to issues concerning specific target groups such as women, children and farmers. The local elite and other knowledgeable persons were also included in the discussion. Other occupational caste groups, ethnic minorities, women and disadvantaged groups were included in the discussion, which gave opportunity for the people in the project area to voice their concerns and ask questions regarding the project. This provided in-depth information associated with their religion, culture, festivals, etc. All the Annexes referred in this text are provided in separate volume. The Annex volume 2 contains 5 Annexes. These include: Annex 1: Entitlement Matrix, Annex 2: Land Acquired for Tower Pads and Losses, Annex-3: Land Acquired for ROW in Ramechap District, Annex 4: List of Owners and compensation status for ROW land acquired under full purchase and Annex 5: Compensation Payment for Land Acquired for Tower Pads. 4

9 3.0 Project Description of the Project 3.1 BACKGROUND To evacuate the power generated from the various planed and proposed hydropower projects in the Tamakoshi basin and to feed the load centres in the substation at Dhalkebar of Dhanusha district, a 73 km long, double circuit, 220 kv Transmission Line Project has been proposed. The proposed transmission line will starts from Khimti of Dolakha District and ends to Dhalkabar of Dhanusa District. The proposed transmission line alignment traverses through the Dolakha, Ramechhap, Sindhuli, Mahotari and Dhanusa districts of Eastern Development Region. For the purpose of the SIA study, the study area is defined as the project area consisting of the right of way, substation area as well as the area that will be impacted due to the construction and operation of the project. The same area is considered as the project area for the preparing the RAP study. The proposed project covers 16 VDCs and one Municipality of the five districts. At present, the project area is accessible up to Manthali of Ramechhap district and Khurkotof Sindhuli district via PuspaLal Highway and B.P Koirala highway respectively. This road has been used for the construction of the T/L Project. A small stretch of the transmission line from Manthali to Khurkot is not connected with road where other means of transportation such as helicopter and porter will be used. For the transportation of the construction material in this stretch local labour will be used from the nearest road head to the construction site. Thus, no access road is required to construct for this project. The right of way of the proposed project will be 15 meter each side from the centrelineand approximately 12.5m x 12.5m area will be required for tower foundation. In most of the areas span of the tower will be 350 meter and in total 230 towers will be constructed in 73 km alignment. The number of angle points is 53 and tower is steel lattice structure, self supportedtype. The project component also includes extension of two 132 kv line bays, one each at Khimtiand Dhalkebar substations. The estimated cost for the proposed project was US$ 22 million, to be funded jointly by the World Bank, GON and NEA. In order to carry out the project works the entire stretch of the power line route will be segmented into two work sections and will be controlled from two ends. The working group of each section will be more or less mobile; hence small size temporary camp will be constructed for the construction of the project. 3.2 PROJECT LOCATION The project is located in Central Development Region and covers five districts of Janakpur Zone namely Dolakha, Ramechhap, Sindhuli, Mahottari and Dhanusha (figure). The 5

10 northern portion of the route alignment is accessible by Kirne- Manthaliand Khurkot district road and up to Bardibas the line is parallel to Banepa- Bardibas Road. The section from Bardibas to Dhalkebar is accessible through East West Highway. The nearest airport is Janakpur and regular flights are available from Kathmandu. 3.3 PROJECT FEATURES The total length of the alignment is approximately 73 kilometres. The right of way of the proposed project is 15 meter from the centre line on each side and approximately 12.5m x 12.5-m area has been acquired for tower foundation. The tower height is meters. Table 3.1: Salient Features Project: Zone: District: VDC/ Municipality: TL Line Length: Span: Khimti Dhalkebar 220 kv Transmission Line Project Janakpur Dolakha, Ramechhap, Sindhuli, Mahottari and Dhanusha Sahare, Khimti, Gelu, Tilpung, Kathjor, Manthali, Bhaluwajor, Bhimeshore, Ratanchura, Ranichauri, Jalkanya, Bhadrakali, Gairibas, TulasiBahunmara, Bengadabar and DhalkebarVDCs and KamalamaiMunicipality, 73 km 350 meters No. of Angle Point: 53 6

11 No. of Tower 188 Voltage Level: RoW: Tower Type: Circuit: Conductor: 220 kv 30 meters Steel Lattice Structure, self supported Double ACSR BISON, Duplex Earth Wire: EHS 7/3.35 Foundation Type: Foundation Area: Bay Extension: Funded by: Pad and Chimney isolated x meters (approx. average per foundation) One at Khimti substation and another at Dhalkebar substation World Bank, GON and NEA 7

12 4.0 Impact Assessment and Mitigation Measures 4.1 PROJECT IMPACTS The 73 km long KhimtiDhalkebar 220 kv Transmission Line crosses over different types of land use sections viz government and community forests, rivers and streams, private agricultural land and some settlements including residential area close to district head quarter in Sindhuli district. Based on the available information from the Project, this Chapter updates the various adverse issues and impacts affecting the local peoples and communities and suggests mitigation measures to address them. Based on the identified impacts and mitigation plans, the institutional arrangements, implementation schedule and the required budget have also been estimated to manage the adverse impacts in consistent with the Operational Manual of Environmental Social Impact Assessment, Impact Categories The TL Project apparently causes four types of adverse impacts to the Project Affected Families (PAFs) in three districts vizsindhuli, Ramechap and Dhanusha. Permanent land loss by tower pads, loss of structures (residential and others) by tower pads and TL within ROW and restriction in land use in ROW are three major adverse impacts of the Project. In Sindhuli, the purchase of ROW land for road along 1.5 km TL alignment has also resulted in land loss to the people. Table.depicts that 131 land plots were affected by tower pads, 565 plots by ROW and 159 plots by road in Kamalamai Municipality of Sindhuli district. In addition, 65 structures owned by 53 owners were also affected by the Project in 3 districts (Table 4.1). Table 4.1: No. of Owners Affected by Loss of Land and Structures S. N. Districts Tower Pads ROW Road Structures Owners (No.) Plots (No.) Owners (No.) Plots (No.) Owners (No.) Plots (No.) No. of Owners No. of Structures 1 Sindhuli Ramechap Dhanusha Total Source: Project Office, 2014 Among the land losing households, 33 land owners lose more than 25% of their land for tower pads with the highest number in Ramechhap district and the lowest in Dhanusha district. The owners losing 25% or more land for tower pads would naturally encounter increased loss of foodgrain production directly affecting their food security and livelihoods than those losing less amount of land and these are defined as Severely Project Affected 1 Estimated figure as land survey is yet to be completed 2 Estimated figure as land survey is yet to be completed 8

13 Families (SPAFs). The land losers of this category will, therefore, be entitled for assistances that would help them increase their foodgrain production and livelihood restoration so that the livelihoodsafter the project would either improve or at least remain equal to the preproject level. The list of SPAFs losing more than 25% land permanently for tower pads is provided in Annex 2 for all three districts. Table 4.2: No. of Owners Losing more than 25% Land by Tower Pads S.N. Districts Owners (No) Plots (No.) 1 Sindhuli Ramechap Dhanusha 3 3 Total Source: Project Office, Physical Displacement of Households Available information reveals that 53 households will be displaced in total that are built within 30 metre from the centre of ROW and most of these are residential structures. These include highest number in Sindhuli and lowest in Dhanusha district. In addition, 8 households will be displaced by feeder road that will be built within 30 metre of ROW in a section in Kamalamai Municipality in Sindhuli. Table 4.3: No. of Households Displaced by Loss of Structures S. N. Districts Tower Pads and Row Road Total 1 Sindhuli Ramechap Dhanusha 8 8 Total Source: Project Office, Severely Project Affected Families The displaced households are also defined as Severely Project Affected Families (SPAFs) irrespective of their land loss by other components of the Project. These households would generally suffer more due to loss of their shelter and other amenities viz toilets, drinking water, biogas etch until they get fully settled in a new place with similar type of facilities. The provisions of Resettlement and Rehabilitation (R&R) Assistances proposed for these households are meant to support them to restore their livelihoods within a reasonable period of time after their physical displacement from the place of their origin. 9

14 Table 4.4: Severely Project Affected Families (SPAFs) S.N. Districts Losing > 25% Land Losing Res. Structures Total 1 Sindhuli Ramechap Dhanusha Total Source: Project Office, 2014 Note: SPAFs are defined to be of two categories: i) those losing 25% or more land, and ii) Families losing residential structures. Many households in the Project area are affected by ROW of the Transmission Line which results in land use restriction. The land use restriction in 30 metre width of ROW restricts the owners to construct any permanent structures or grow taller timber or fruit trees above certain height. The ROW land however can be used for agricultural purposes. In lieu of the land use restriction, the project has paid 10% of the land compensation value for the affected portion of land in ROW. More information on land use restriction and compensation payment is provided in Annex IMPACTS MITIGATION MEASURES Various mitigation measures have been proposed to minimize or neutralize the adverse impacts faced by the project affected families. In case of SPAFs, specific mitigation measures have been proposed in addition to normal livelihood improvement supports to be provided for all affected families. Keeping in view the social safeguard measures specified in the Operational Manual, 2009, the following impacts mitigation measures have been proposed. The eligibility of PAFs and SPAFs for different types of entitlements is provided in Annex 1, separate volume. i) Compensation of affected land and other properties at replacement value, and ii) Resettlement and Rehabilitation Assistances comprising of the followings; Cash assistance equal to minimum wage rate Transportation allowances Rental allowances Hardship allowances, and House construction allowance The details of the assistances designed for different types of affected groups are presented in the sections below Cash Assistance Equal to Minimum Wage Rate 10

15 In case of SPAFs losing more than 25% land, cash assistance equivalent to 6 months of minimum wage rate (Rs 200 for 75 working days in 6 months based on work opportunity available locally) amounting to Rs in total has been proposed. In total, 33 SPAFs of 3 districts will be entitled for this assistance which amounts to Rs with the lowest amount in Dhanusha and the highest in Ramechap district. This amount will be used by SPAFs to increase agricultural productivity and income to make up the deficit caused by reduced land holding size after the land acquisition by the Project. Table 4.5: Livelihood Restoration Measures to SPAFs Losing > 25% Land S.N. Districts SPAFs (No.) Minimum Agri. Wage (Rs) * Total 1 Sindhuli 10 15, ,000 2 Ramechap 20 15, ,000 3 Dhanusha 3 15,000 45,000 Total/Average 33 15, ,000 Source: Estimated based on minimum wage rate of GON. *In Nepal, the working opportunity in agriculture is low which is estimated to be 150 days a year. Based on this the SPAFs would have been provided employment for 75 days in 6 month time with a minimum wage rate of Rs 200/ day or Rs 15,000 within a period of 6 months which is slightly more than GON minimum wage rate of Rs 150/ day for unskilled labour as published in Nepal Gazette, 2008, notice of GON Resettlement and Rehabilitation (R&R) Assistances The latest figures reveal that a total of 53 families will be displaced from the place of their original residence. The R&R assistances include transportation cost, house rent, hardship allowance and house construction allowance which amounts to Rs per displaced family. The rationale behind paying these assistances to the displaced families or SPAFs is to extend them support during the period of their placement from one place to another place until their new residential structure is built and becomes usable for the family members. The amount of total R&R assistance to 53 SPAFs is estimated at Rs out of which only less than one third SPAFs have received part of this amount. In order to expedite the Project work, it is extremely important for the Project to pay the R&R assistances to the SPAFs that has been pending for several years. Table 4.6: R&R Assistances for Displaced SPAFs S.N. Districts SPAF s (No.) Transpo rtation Cost House Rent Assistances (Rs) Hardship Allowanc e House Constructio n Allowance Total All Total 1 Sindhuli Ramechap Dhanusha Total/ Average

16 Source: Estimated based on RAP and Operational Manual for Environmental and Social Assessment Framework Livelihood Restoration Package The Project requires to pay due attention to deliver package services aiming to improve the overall livelihoods of the affected families. This will be possible through enhanced level of skill training in agriculture and livestock sub-sector covering all affected families. Skill training in using agricultural inputs is normally useful for many rural households to optimize their crop productivity. It may include transfer of technical knowhow with updated information among farming households including males and females by imparting training and demonstration. Similarly, the technical knowhow in using agricultural inputs is also critical for many farming households which would help them to use appropriate amount of quality inputs viz improved seeds, pesticides, organic manure, irrigation etc. which would enhance their crop productivity and income. Training in crop diseases and their treatment is also of equal importance for farming households. Some households would prefer to receive skill training in livestock raising and veterinary services as a means of improving their income and livelihoods. Table 4.7: Livelihood Restoration Package for Project Affected Families (PAFs) S.N. Districts PAFs (No.) Skill Training * Agri. Inputs ** Total 1 Sindhuli Ramechap Dhanusha Total * Skill training cost is estimated at the rate of Rs 3000 per household. ** Agri inputs related training cost is estimated at the rate of Rs 1500 per household The livelihood restoration package is provisioned to all PAFs affected by the Project which figures out to 1080 in total although this figure may change slightly during the course of implementation. The executing agencies of these package services will require to work out detailed operational plans in coordination with the PAFs so that the services could be delivered as per the felt needs and interest of the peoples. 4.3 COMPENSATION PAYMENT A major mitigation measure to address the issue of adverse impacts (loss of land, houses, income sources etc.) caused by the project is through compensation of all losses at replacement value. The Compensation Determination Committee (CDC), which is a statutory body to determine the compensation rates, has already fixed the compensation amount for most of the losses in all districts except in ROW in Sindhuli district. The CDC which is formed in every district under the Chairmanship of Chief District Officer (CDO) takes into account the following references to determine the rates. Market rates of land prevailed in land transaction in the district Land rates fixed by the Land Revenue Office in the district Valuation of building (structures and other facilities) based on prevailing norms, and 12

17 Consultations with PAFs representatives. In KhimtiDhalkebar TL Project, compensation payment is still in progress and it was much delayed due to disputes between affected people and the Project. Compensation has been paid partially for all the affected assets i.e land and structures but some owners are still resisting accepting the compensation as some of them do not want the Project to be aligned through their areas. Most of the APs showed their concerns with potential health hazards on the belief that the high voltage TL Project would be the source of major diseases adversely affecting their reproductive system which would put them at great risk permanently. This is largely due to inadequate information dissemination consultations by the Project with the APs from the beginning. The Project s compensation payment status for different headings is shown in Table 4.8. The total compensation amount of the Project is a whopping Rs million and a much large percentage accounting nearly 95% is allocated for purchasing land for road in ROW. For rest others like land for tower pads, ROW land and structures, the amount of compensation is relatively low. Of the total compensation amount for road, there is still a major share which is yet to be settled. The details of compensation paid for land acquired for Tower Pads are provided in Annex 5. Table 4.8: Compensation Payment Status in the Project, March 2014 S.No. Districts PAFs (No.) Estimated Compensation Amount (Rs) Compensation Paid (Rs) Total Compensation Pending (Rs) All Total Tower Pads Row * Road Structures Total Tower Pad ROW Road Structures Total Paid (Rs) Tower Pads ROW Road Structures 1 Sindhuli Ramechap Dhanusha Total * In Sindhuli, the ROW compensation is calculated based on estimated number of Plots in ROW (220) and average amount of compensation of Rs per plot as the ROW land is not yet measured. On the whole only 60.8% compensation has been paid to PAFs in the Project and the payment figures differ significantly across the districts. In the Dhansha, the percentage of compensation paid is highest whereas the corresponding figure is lowest in Sindhuli where a significant amount is yet to be paid, mainly for the land acquired for road in the ROW. Table 4.9: Compensation Paid and Pending Amount S.No. Districts PAFs (No.) Total Total Compensati Compensati on Amount onpaid Total Pending Total Paid over Total Compensat ion Total due All Total (Rs) (Rs) (Rs) % % % 1 Sindhuli Ramechap Dhanusha Total

18 Given the high figure of compensation yet to be paid, the Project needs to expedite the process of payment as early as possible. The Project should hold intensive dialogues with the PAFs, inform them fully about Project s impacts on health and their livelihoods so that they would come ahead for collecting compensation. 4.4 CONSULTATIONS AND COUNSELING Continued consultation with the Project affected peoples (PAPs) is part of social planning and implementation. The Project should engage its field staff for regular consultations with the PAFs during the implementation of RAP so that the PAFs who are in problem to produce legal documents for claiming compensation and those having other problems can be supported closely by the Project s field based staff. The consultations will also provide opportunities to disseminate and share information about RAP and Project activities in advance which will be useful to create an enabling environment for both Project and people to work together. Equally important is the counselling services to the PAFs and SPAFs for utilizing the compensation amount received by them. In absence of timely counselling services, many PAFs receiving money against compensation often take wrong decisions to make proper use of the same with adverse impacts in their livelihoods. The victims of such PAFs would include children, women and elderly people who would face hardship to sustain their livelihoods. 4.5 VULNERABLE GROUPS In the changed context of the Project including its impacts to a larger group of households, an updated Vulnerable Community Development Plan (VCDP) has been prepared in parallel with this RAP. The updated VCDP suggests site and community specific potential activities and programmes based on the felt needs of the people living close to the transmission line alignment. The purpose of the VCDP is also to address the issues of broader communities rather than individuals who will be affected adversely by the Project. The settlements dominated by Indigenous Peoples (IPs) and Dalits are accorded priority in the VCDP including women of all caste/ ethnic groups. The implementation of VCDP, which is prepared in close consultations with the project affected peoples, will help improve the livelihoods of the people by improving their access to various essential physical facilities and services viz drinking water, minor irrigation, skill training, conservation of forest resources and so forth. In addition, the VCDP also consist of specific programs aimed to conserve the rich historical and religious sites of the project area. 4.6 DISCLOSURE The Project will require disclosing the updated RAP by 15 April The summary translated version (in Nepali language) of RAP along with the entitlement should be disclosed in soft and hard copy. The soft copy should be disclosed by posting in website of NEA and the Project. The hard copies should be made available in Project Offices in the site, the head office as well as in public places like VDCs, DDCs and Municipality where the general public will have easy access of the documents. 14

19 5.0 Institutional Arrangement, Implementation Schedule and Grievance Redressing 5.1 INSTTITUTIONAL ARRANGEMENT The overall responsibility of implementing this updated RAP lies with Nepal Electricity Authority and the Khimti-Dalkebar 220 kv Transmission Line Project. The CDC/ Project has major role in the valuation of affected properties, follow up of the grievances put forth by the PAPs and pay compensation and R&R assistances as well as providing livelihood restoration measures on time. The Environmental and Social Studies Department (ESSD) of NEA which was engaged since the beginning of Project implementation has to be reengaged fully and responsibly to implement the activities proposed in the updated RAP. ESSD will work in close coordination with the Project Manager and chief of the KDTL. The Communication Officer along with two Liaison Officers and project field staff will be responsible for facilitating RAP implementation including relocation of SPAFs who will be physically displaced. In addition, Project will be assisted by ESSD. ESSD will have to report the progress of RAP implementation on monthly basis for the remaining period of project implementation. 5.2 IMPLEMENTATION SCHEDULE The Project will implement all the activities proposed in the updated RAP by June 30, Any further delay in the implementation of RAP will not only prolong the issues but also cause delay for remaining construction works of the Project. The following timeframe is suggested to implement the RAP. Table 5.1 Proposed Implementation Schedule of RAP S.N. RAP Activities April May June Remarks Disclose the updated RAP == Summary in Nepali language 2 Complete compensation payment for land, structures, R&R assistances ======== ======= ====== Payment of pending amount 3 Hire competent NGOs to provide skill training and implementing livelihood options === ======= For livelihood restoration of PAFs 4 Continue consultations ======== ======= ====== 5 Provide counselling services ==== ======= ====== For utilizing the compensation for assets creation and income generation 15

20 5.3 GRIEVANCE REDRESS MECHANISM At Project level, an effective grievance redress mechanism will be established to allow project affected persons (PAPs) to file or appeal any disagreeable decisions, practices and activities with which they are not satisfied. As part of the grievance redress mechanism (GRM), the PAPs will be made fully aware of their rights and the procedures to follow and also file their grievances in writing accordingly. The PAPs will have unhindered access to the grievance redress officials to forward and file complains without being intimidated or being deterred by excessive bureaucratic hurdles. Furthermore, APs will be exempted from all administrative fees incurred, pursuant to the grievance redressed procedures except for cases filed in court. Proposed mechanism for grievance resolution has four stages as given below in the Box. Box-1: Stages of Grievance Redress Mechanism Stage 1: Stage 2: Stage 3: Stage 4: Communication Officer: Complaints of PAPs on any aspects affecting their properties, income and livelihoods adversely will be reported to the Communication Officer based in the field. The Official will review the grievance, visit the site if necessary to assess the issues and arrange meeting with the APs and other people in the community to settle the disputes informally or formally. Such meeting or consultation with the involvement of Communication Officer and village level leaders will be helpful to come up with a proper solution. It will be the responsibility of the Officer to resolve the issue within 15 days from the date of the complaint received. Communication officer will be assisted by two Liaison officers hired by project in this regard. Project Manager: If no understanding or amicable solution is reached or no response made from the Communication Officer as mentioned in Stage 1, the APs can appeal to the Project Manager with his complaint. The Project Manager will hold a joint meeting with the APs, the Project field staff and other concerned members of the community. The Project Manager, after hearing all the grievances and visiting the sites if necessary, will settle the grievance within 15 days after lodging the complaint to him. CDO: If the complaints or grievances of PAPs are not resolved at first and second stage mentioned above, the APs will directly approach to the Chief District Officer (CDO) who is also the Chairperson of the CDC. While lodging the complaints, the APs must produce adequate documents / proofs to support his/her grievances. The CDO or his staff will take the decisions within 15 days of registering the appeal and resolve the issues. District Court: If the APs are not satisfied with the decision of CDO or in absence of any response of its representatives within 15 days of the complaints filed, the APs, as his/her last resort, may appeal about the complaints and file the case to the court with the required evidences and documents as asked by the court. The court will be the final authority to take decision on the grievances within 35 days from the date of grievance field to him. 16

21 6.0 Estimated Budget The estimated budget for implementing complete RAP including the activities performed in the past is Rs million. Of this amount, significant amount of compensation has already been paid whereas the remaining amount is also quite significant. In addition, the cost for R&R assistances and livelihood restoration measures for SPAFs and PAFs is also quite notable. Table 6.1: Estimated Budget for Implementing the RAP S.N. Budget Headings Rs. Remarks 1 Compensation Payment 1.1 Tower Pads Based on Project s estimates 1.2 RoW Land do 1.3 Road (Full purchase)* do 1.4 Structures and R&R assistances do Sub total R&R Assistances to displaced SPAFs 2.1 R&R assistance (61 Rs per SPAF) Livelihood Restoration Support to 33 SPAFs losing more than 25% Rs per SPAF Sub total Livelihood Restoration of 1080 PAFs 3.1 Skill training in agriculture/ livestock Training for using agri. Inputs Sub total Compensation for Other Damages 4.1 Crop losses during construction Lumpsum 4.2 Loss of trees and fruits do Sub total Implementation Cost 51 NGO hiring for 6 months Lumpsum (for livelihood restoration and other training) 5.2 Communication and Information Dissemination Sub total All Total Contingency (5% of the total cost) Grand Total *The figure is based on the reported amount in a BTOR, December Preparation and distribution of IEC materials and campaigning 17