BAN: Gas Transmission and Development Project

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1 Resettlement Planning Document Resettlement Plan Document Stage: Final Project Number: November 2005 BAN: Gas Transmission and Development Project Prepared by the Gas Transmission Company Limited (GTCL) for the Asian Development Bank (ADB). The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff, and may be preliminary in nature.

2 1.1 INTRODUCTION CHAPTER 1 SCOPE OF LAND ACQUISITION AND RESETTLEMENT Rajshahi is a medium densely populated city with a population of The total number of household is There are 224 small to large scale industries in the City and it s adjoining area are in operation. At present bagasse wood, kerosene, diesel, furnace oil, coal are being used in household, hotel, industry, commercial places as well as brickfield as fuel. These fuels have bad socio-economical and environmental impact. Even bagasse is the main source of fuel for the large industries in Rajshahi. Air pollution level of the city is increasing over time. Most of the vehicles are old and are emitting polluted gas, which is damaging environment and human health. Due to the lack of Natural Gas availability there is no planned growth of industrial establishment developed in Rajashahi so far. Demand of Natural gas of civic people both for residential and commercial use as fuel is for long. The Government of Bangladesh has taken up a decision to provide gas distribution in Rajshahi for residential and commercial purpose as fuel. At present there is no gas connection line for residential as well as commercial activities. In this context, Pashchimanchal Gas Company Limited (PGCL) intended to implement a project for construction of 150 psig and 50 psig distribution pipeline, with different diameter of pipe size (0.75, 1, 2, 3, 4,6 and 8 inch) in 370 km long pipeline in the city and it s adjoining area. Gas pipeline network will be made a loop from Kharkhari to RDA, Missionary Hospital road through by-pass road, and medical more and Motihar through greater road for distributing adequate and stable supply of gas from the proposed City Gate Station (CGS) station at Kharkhari Rajshahi. Thereafter, a low pressure 50 psig from 150 psig medium pressure gas from CGS will enter into the gas distribution network loop. The constant pressure will be maintained through the loop under the Gas Distribution Network of Rajshahi City and its Adjoining Area. A resettlement plan (RP) mainly land acquisition for 2 DRS, 1 TBS, office and residential building, temporary land requisition for installation of pipeline and compensation for damage of 350 km road structure due to road cutting will be required to implement the gas distribution pipeline network project. Since Bangladesh does not have involuntary resettlement legislation, the RP should be guided by the international best practice policies of funding agencies such as the World Bank and the Asian Development Bank, as well as by the experience gained on country projects that have involved land acquisition, requisition and compensation for road structure damages. 1.2 Objectives of the Project To ensure adequate and stable supply of Natural gas to the Rajshahi City and it s adjoining areas. To ensure overall economic development through increased production in the industrial and commercial sectors. 1.3 Scope of Work Under the Project PGCL has been planed to installation of 370 km long Gas Distribution Pipeline Network with a varying diameter from inch of Rajshahi City and It s Adjoining Area. The scopes of work under the proposed project are to be installed 370 km pipeline network in and around the main city areas. Page-1

3 In line with this necessary physical features and socio-economic surveys were conducted by PGCL for indicating distribution of gas pipeline alignment and affected properties (i.e, utilities services, crops, trees and homesteads) for paying compensation to the project affected organizations/persons for resettlement activities. For construction of District Regulating Station (DRS), Town Bordering Station (TBS) and installation of Gas Distribution Pipeline required acquisition / requisition of land in their respective premises. Table 1.1 : Length of Gas Distribution Network Line Section in the Project Section Length (in km) ¾ 50 Total Location of the Project Area The proposed project area is located in the northwestern part of Bangladesh. The project covering most of the Rajshahi City area under the Rajshahi Development Authority (RDA) and Rajshahi City Corporation and it s adjoining area. The project covers all most all the areas of main city and its adjoining areas. There are 30 wards under the project. Location of all required control stations such as Control Valves, District Regulating Station (DRS), and City Gate Station (CGS) and Town Bordering Station (TBS) etc. for the proposed Gas Distribution Pipelines Network selected along the existing roads. The location of the 2 District Regulating Station (DRS) at Near Missionary Hospital Road, Adjacent to RDA and 2 proposed DRS one at Rajshahi Medical College Boundary and the other at Motihar (Kajla) and 1 Town Bordering station (TBS) at Kharkhari adjacent to CGS for the proposed Gas Distribution Pipeline will make a loop for constant, stable and adequate pressure for distribution of gas to the consumer. CGS will be constructed by GTCL at Kharkhari and will deliver to TBS with 150 psig pressure through control valve from 350 psig. (Photograph 1-4 shows the 4 DRS, 1 TBS and alignment of road) Map 1 shows the proposed four DRS, one CGS and one TBS and route of the gas distribution pipeline, of Gas Distribution Network at Rajshahi City and It s Adjoining Area. 1.5 Census and Inventory of Assets of Affected Road Infrastructure The affected government, autonomous organizations and individual along the 370 km of distribution network pipeline ROW with 1.2 m width of strip along the road side infrastructure will acquire land for 4 DRS and 1 TBS and one time compensation will be given for the loss of existing road structure due to road cutting for the layout of the gas distribution pipeline network as per GoB policy and ADB guideline. Various government, autonomous organizations and individual will be affected by the project implementation who are require appropriate compensation for the loss of their property and fixed productive assets such as land, residence, establishment or trees. Page-2

4 A complete enumeration has been undertaken by PGCL of all affected roads irrespective of their entitlements or ownership status. It provides a complete inventory of all affected roads and utilities services (Mainly water supply and telephone). The census, however, produces an output of a data base of the entire acquisition of land permanently and requisition for temporary possession land and compensation for cutting of existing road for installation of pipeline layout along the roads. 1.6 Market Survey for Value Assessment The market survey determine prevailing market price of restoration cost of damage road structure in the Project areas. Of course, the usual basis is the repair values recorded in the City Corporation and roads and high way department and combine with qualitative judgment by neutral people from the locality. Market survey will be conducted to determine the replacement cost compensation value of land, affect of road structure and other utilities services due to digging if loss due the implementation of the proposed project. 1.7 Scope of Resettlement The alignment of the gas distribution network pipeline is selected in such a way so that it passes along the road side so that the construction of distribution of gas pipeline does not cause any homestead and business establishment displacement. However, because of the population density in the city and the fact that virtually every inch of land is under some kind of use specially in city areas, including commercial and residential use. Even so, the Project has aside from the use of land, insignificant resettlement effects, and at the time of actual implementation, careful consideration will also be given to minimize any adverse impacts on land acquisition, temporary requisition of land, compensation for road cutting, and other infrastructure by rerouting if necessary. Page-3

5 2.1 Introduction CHAPTER 2 SOCIO-ECONOMIC INFORMATION OF THE PROJECT AREA This Chapter of the report is intended to highlight the socio-economic scenario of the Project area and it s vicinity. In this respect both primary and secondary data are used. The principal secondary sources are the Census Reports of Bangladesh, Rajshahi Development Authority (RDA) maps, ADB Handbook on Resettlement and Bhumi Odhigrahan Manual: A Manual of Land Acquisition and Requisition in Bangladesh (1995) by H.J. Alam. The secondary data related to socio-economic information of the project area is described demographic characteristics, tenurial and cropping patterns, in 2.2 and 2.3 sections. The primary data is collected through socio-economic survey (SES). The SES is intended to serve two purposes: firstly, it obtains pre-project productive activities, incomes and economic interdependency among the APs, land ownership and land-use patterns, occupations, likely impacts of the project on economy of the APs and the community. Secondly, it provides a baseline for subsequent monitoring and evaluation of implementation of the Resettlement Plan and its impacts. The socio-economic survey data, however, is presented in 2.4 section. 2.2 Demographic Characteristics A review of the demography of the Project affected Wards will help to understand the characteristics of the APs. This Chapter presents an analysis of some selected characteristics of the inhabitants of the area, including population by sex, population density, sex ratio, household size and literacy rate of the population. The total population (males and females) of the Project-affected area is , with an average population density of 4118 per sq. km. Distribution of the population by sex, sex ratio, average household size and literacy rate in the Project-affected areas are presented in Table 2.1. TABLE 2.1: City Corporation wise Population Distribution by Sex, Sex Ratio and Average Household size in the Project Area City Population Corporation Male Female Total Dhaka (56.64) Rajshahi (53) Chitagonj (55.53) Khulna (53.30) (43.36) (47) (44.47) (46.70) (100.0) (100.0) (100.0) (100.0) Averag Sex Ratio Literacy e HH* (M/Fx100) Rate Size *HH= Household; Figures in the parenthesis indicate percentage Source: Compiled from Bangladesh Population Census 2001, Union Statistics, Vol. 2, Bangladesh Bureau of Statistics, 2003, (January 2005) There are males for every 100 females in the project area. The sex ratio of the project areas is higher than that of national average of However, a higher sex ratio is Page-4

6 observed in Dhaka City Corporation followed by Chittagonj, Khulna and Rajshahi City Corporation. The higher sex ratio in Dhaka City Corporation can be explained by its location in a metropolitan area, as this is a common characteristic of urban areas. Table 2.1 shows the literacy rate highest in Dhaka City Corporation, followed by Rajshahi, Ctittagonj and Khulna. The literacy rate is higher among the males, and all the city corporation having the higher literacy rates than the national average. A number of NGOs are working in and around the city corporation area. Principal NGOs are the BRAC, Proshika, Grameen Bank, ASA etc. The majority of the members are women. Providing credit facilities to the members is the principal activity of these NGOs. However, all the NGOs have undertaken multidimensional development projects including saving credit, skill training, social forestry, livestock, water supply, sanitation and poultry programs. City Corporation has government health service centers. Almost all the market centers have a number of drug store with a doctor to serve the local area or payment. Most of the people drink supply water. In the Project area, people use both sanitary and katcha latrines. The field survey confirms that no religious worship places, educational institutions, old monuments or relics, industrial establishments and market places affected by the proposed pipeline route. 2.3 Project Affected Area Table 2.2 shows the Estimated Number of Affected Office for District Regulating Stations of the proposed project affected area. TABLE 2.2: Estimated Number of Affected organizations for District Regulating Stations and business and utilities services for Distribution Pipeline Network Sl. DRS Area of Affected Land Type of Land Percent APs No land Owner 1. Near Missionary 70 m X 50 m R&H Dept. Vacant Nil Hospital road 2. Adjacent to RDA 70 m X 50 m R&H Dept. Vacant Nil 3. Motihar (Kajla) 70 m X 50 m Rajshahi Vacant Nil University 4. Rajshahi Medical 70 m X 50 m Rajshahi Vacant Nil college boundary Medical college TBS 1. Adjacent to CGS 70 m X 50 m Private land Agricultural land Nil Pipeline 1. Distribution pipeline network 350 km City Corporation, R&HD, LGED, & other organization Shoulder or footpath of road Temporarily affected business and utility services Page-5

7 2.4 Household profile in the Project area Educational Status of the Area The literacy rate of the project area is percent. About 11.1 per cent of members excluding up to 4 years children in the sample households are illiterate according to definition of illiteracy provided by BBS. Among the literate of the population only can read and write. In addition, 22.5 per cent attained primary education and 21.7 per cent attained secondary education. The remaining per cent have attained higher secondary and graduate/post graduate or equivalent and Madrasa education among them only t up to intermediate level. The literacy rate of the area is higher than the national literacy rate BS in (Table 2.3). Table 2.3 Distribution of Household Members by Education Level of education Per cent Children (up to 4 years) 10.6 Illiterate 11.1 Only Able to Read 1.7 Able to Read & Write 5.0 Primary (1 st to 5 th class) 22.5 Secondary (6th to 10 th class) 21.7 S.S.C/Dakhil 15.0 H.S.C/Alim 5.4 Graduate/Fazil 4.2 Post Graduate/Kamil 2.9 Total Occupational Structure of the Area Occupation indicates sources of income from work as well as social status. Table 2.4 presents the main household occupation. A good number of women consisting 26.4% of population are engaged in household activities while 35.4% are students or children. Remaining 38.2% are active in professional work. Among the professional agricultural farming is the prime occupation (18.1%) of household. The remaining is engaged in business (4.4%), service (3.6%), agricultural labour (1.2%), rickshaw/van/ pushcart driver (0.4%), salaried worker (0.4%), tailors (0.4%) and other unusual occupation (2.1%). Other occupation means brokery, membership in union council etc. It is found from the table, 58.8 per cent of population has no occupation which is comprised with housewives, unemployed, retired persons, students and children Households with Physically Retarded/Crippled Persons The proportion of physically or psychologically handicapped people is a negligible 0.5%. Table 2.4 Distribution of Household Members by their Primary Occupation Occupation Per cent Farmer 3.8 Share Cropper 1.3 House wife/household work 26.4 Agricultural labour 1.2 Rickshaw/Van/Pushcart 0.4 driver Service holder 13.6 Salaried worker 3.4 Businessman 3.2 Small Businessman 1.2 Unemployed/Retired/old 7.6 Tailor 0.4 Student /Children 35.4 Others 2.1 Total 100 Page-6

8 2.4.4 Land Use Pattern The most of the Land is used as residential area, educational institution, government and autonomous offices, market and business establishment in the city area. A small portion of land also used as fruit farming Physical Facilities of the Households Electricity All the surveyed wards have electricity facilities for household and commercial use Electricity is still a relatively scarce commonly, a luxury which many people cannot afford even if it were to become available in their village, the Power Development Board has taken the task to electrify all the city and it s adjoining areas. Due to the project implementation the existing electricity facility will not affect Water Facilities for Household Use For house hold and other purpose the city corporation supplies water to its city 79% dwellers. Tube-well is the lone source of domestic water for all households. Self-ownership of this source of the household is very less. Supply of clean potable drinking water for domestic use is the main key to the prevention of water-related diseases. Due to the project implementation the existing water supply pipeline may affect Telephone facilities for Civic people Telephone facilities are available in the project area. Due to the project implementation the existing telephone line may affect Latrine Facilities Sanitary latrine facilities in the study area are adequate; almost 90%. There are 11 public toilets in the city area. Different NGOs in collaboration with the UNICEF and DPHE (Directorate of Public Health Engineering) are promoting sanitation programmes specially in the suburban areas Cooking Fuel Most of the households use LPG as the cooking fuel. Besides they use wood, kerosene, bagasse, leaves, cow dung, husk, etc. Average cooking fuel cost of per household is Tk Employment Opportunity The employment opportunities are less than Dhaka, Chittagonj and other industrial city or town. Many jobs will be created in the transportation section after commencement of CNG run vehicle and gas based industry. Gas supply in the city will increase the employment opportunity for both men and women. After the implementation of this project, it will alleviate the life style of the local people. As this area is a densely populated area, large numbers of labours are available at a low cost Emigration and Immigration: Population migration within the country, especially from rural areas to the capital city and to Chittagong and Khulna are very visible. In response Page-7

9 about emigration and immigration of the area, negatively in terms of emigration and positively in terms of immigration. The main factors driving migration are; Poverty Unemployment River erosion (i.e. loss of land) Natural calamity Hope of a better livelihood. It is seemed here, the trend of immigration is higher than emigration. Though non-farm opportunity is available here but some inhabitats are migrated out of the area due to difficulties in getting job, expecting more salary/wage and due to lack of business opportunity. On the other hand, people immigrate in the area due to higher demand of urban service and space available. However, distribution gas in the city will be positive impacts and would stimulate a complete transformation of life in the west and north-west parts of the country, which has thus far been deprived of many amenities of life. The net migrant in Rajshahi division in 10 years in1991 is Social Issues Leadership pattern and Faction The leadership pattern of the project is as usual as other urban part of Bangladesh. It is reported here Mayor and Commissioner of City Corporation, political leaders, eldest and education personnel are the leading characters of the area. In most cases politics is the most cause of factionalism, which is mitigated through negotiation by Mayor, commissioner, local elites and in court Social Problems The existing social problem of the area are the lack of health service facilities (19.7%), lack of educational facilities (15.7%), unemployment (12.4%), lack of good communication (9.6%), are stated as major problem Historical/Archeological Relics Rajshahi has seen the most glorious periods of Bengal's Pala dynasty. It is famous for pure silk, mangoes and lichis. Attractive silk products are cheaper. A visit to Varendra Research Museum at the heart of the city of rich archaeological finds would be most rewarding. There are also a number of ancient mosques, shrines and temples in and around Rajshahi. Its Hindu dominant history is evident in the palatial houses that abound in various stages of decay. And are now relics of the past. Santal tribe is another interesting attraction of Rajshahi Gender Situation Most of the female members of better off families are engaged in household activities. Females are also actively participated in the development activities with their male counterpart in the office also. Sixteen per cent women of the total households engaged in income generating activities. They are also members of NGOs and co-operative societies. They take loan from these organizations to start IGA. Female members of above households are working for Nasksi kantha sewing, poultry rearing and vegetable gardening. Page-8

10 Estimation of Poverty Line For estimation of the Poverty Line (PL) based on the calorie intake of food energy intake, it is necessary to estimate the food bundle which will provide 2112 kcal of energy required to keep the physical condition of a person in a state of working level. It has been suggested by Mujeri 1 that the bundle composed of the food items presented in the Table 2.5 with quantity shown against each would provide 2112 Kcal and about 60 gm. of protein. For estimating the calorie intake, the items and their quality were chosen considering the types of beneficiaries included in the sample. Table 2.5 Composition and quantity of Items in Food Bundle to Produce 2112 Kcal and 60 gm. of Protein Per Capita Per day. Food Item Consumption Per Capita/Day (gram) Rice 397 Wheat 40 Pulses 40 Fish 48 Meat 12 Vegetables 150 Fruits 20 Potato 27 Sugar 20 Edible Oil 20 Milk 58 Total 832 Rice : Coarse Pulses : Masur, Khesari, Matar and Mashkalai Wheat : Atta Fish : Trash Fish e.g., Puti, Taki, Mola Meat : Beaf Vegetables : Patal, Kumra, (Mitha & Chal), Data Fruits : Banana Potato : Nainatal Sugar : Coarse (Gur) Edible Oil : Soyabean Milk : Cow milk Poverty Situation of the Sample Population. After having determined the Poverty Line (as measured by household income), the relative poverty situations of the sample population measured by their household incomes are seen to be 46.1 percent below the poverty line Focus Group Discussion (FGD) The proposed gas distribution network pipeline project will not affect any household residing in the city and hence no discussion was done in the focus group on resettlement issue. The following section presents the socio-economic situation of the people Knowledge about High Pressure Gas Distribution Pipeline The local people had no knowledge about the construction of Gas Distribution Network pipeline as well as land acquisition for construction of gas pipeline prior to visit of SES survey team. But a few people had knowledge about Gas Distribution Network pipeline Cropping Pattern The most part of the city is residential, educational institution, government and nongovernment offices and other business and cultural centre. There are few agricultural activities in the city area. The agricultural land of its adjoining area is fertile. People is 1 Mujeri, M. K.: Methods of Measuring Poverty in Poverty and Development, edited by Rushidun Islam Rahman, BIDS Page-9

11 growing crops all round the year while mango gardening in high and medium high land and grow once a year Economic Institutions Based on city corporation source there are 251 mills and industries, 821 small scale factories, 145 poultry firm 788 hotel and restaurant and 1800 grocery shop in the city corporation area are in operation. Most of the local people are working in these small scale industries. The employment opportunity is very less due lack of availability of energy source and hence no industrial growth in the city. It is expected that after the gas supply there are many economic activity will start Social Organization Non Government Organization (NGOs) like BRAC, Proshika, ASA, and other NGO,s are working for development of economic situation of poor households. Rajshahi Krishi Unnayan Bank, Grameen Bank, and co-operative society also work for the development of the locality. They provide loan housing, petty business, and other income generating activities. Both men and women, especially women in poor and slum area, are members of organization of the NGOs. It needs mentioning here that women in the better-off household perform household chores including post-harvest activities in their homestead Vulnerable Group Since the alignment of the Rajshahi City Gas Distribution Pipeline Network will be constructed along the existing road side hence there is no individual person or group will be affected due to this project implementation. Two DRS will be constructed in the R&H department s vacant land and one TBS will be constructed in private land after acquisition. Proper compensation will be paid to the respective department for restoration of previous status due damages of road cutting. Utilities facilities and business hamper for one day in some place will be affected due to cutting of roadside for pipeline installation. Based on survey there is no indigenous people and ethnic minorities in the alignment of the gas distribution pipeline who will be affected Land Acquisition and Compensation Payment The participants of City Corporation area appreciate the attempt for construction of gas distribution pipeline network and they demand gas for household use as fuel. Since there is need for government and private land acquisition for the implementation of the project hence proper compensation payment will be paid to the respective Organization (R&HD) and private land owner according to the ADB guidelines. The proposed gas distribution pipeline network will be installed along the road side 2 DRS and 1 TBS will be constructed at the vacant and unused government private land near the road alignment. In this case 7.5 acres of land for 2 DRS (70 m x 50 m for each DRS) 1 TBS for same size (70 m X 50 m), office and residential building will be acquired. For the construction of distribution pipeline network along the existing road network can be seek permission for temporary possession from various departments and compensation will be paid for restoration of previous status of road due to damage of road cutting during pipeline installation. The local people of the project area appreciate the attempt for construction of gas distribution pipeline and they demand gas for household use as fuel Impact of Land Acquisition Based on survey the likely impact of land acquisition is given below: Page-10

12 i) As per construction practice, the contractor will revert back the top soil condition of the route (0.5 meters width) to its original position. Construction process does not affect soil condition as soil in Bangladesh has uniform characteristic upto substantial depth. Even through this practice will degrade the soil fertility as the soil nutrient remains within 6 inches (0 to 15 cm) depth of the ground. However, since the alignment is along the road side hence there is no impact on income level except insignificant business will hamper for one day for few locations, socio-economic conditions and any agricultural activity except the public utilities for short time in the project area. ii) iii) iv) The house owners will not loss any land they own, their dwelling houses, etc due to the gas distribution pipeline and even there is no need for readjustment of alignment in private land also. The project intervention will promote more industrialization as well as generate employment opportunity. The supply of gas to the domestic houses, if done after the completion of the project, will be a benefit from the project intervention. Page-11

13 CHAPTER 3 RESETTLEMENT POLICY AND LEGAL FRAMEWORK 3.1 Review of Relevant Legislation Acquisition and Requisition of Immovable Property Ordinance II, 1982 Implementation of development projects involves acquisition and/or requisition of large tracts of land necessitating displacement of people as well as removal of crops and trees. This causes great hardship to the affected people economically, socially and environmentally. In most cases, the affected people are not the direct beneficiaries of the development projects. The acquisition and/or requisition of property laws has been considered to be harsh. In recent years this has attracted attention of planners and sociologists both within and outside the country. The result of this attention is that resettlement or income rehabilitation, provisions are being associated with all land requisition measures of this Project. The first Land Acquisition Law was enacted in 1894 and was amended and expanded a number of times until the partition of British India in the Acquisition and Requisition of Immovable Properties Ordinance enacted in 1982 (with a few amendments) is the final version of the relevant legal framework for acquisition of land in Bangladesh. Requisition of immovable property is made in Bangladesh under the Acquisition and Requisition of Immovable Property Ordinance This Ordinance replaced the Land Acquisition Act, 1894 and the East Bengal (Emergency) Requisition of Property Act of This Ordinance is (with a few exceptions, which will be discussed later,) governing all cases of acquisition and requisition by the government of immovable property for any public purpose or in the public interest. It may be noted that contrary to the previous Act i.e. Act XIII of 1948 this Ordinance deals only with immovable property (Land Acquisition/Requisition Act I of 1894 also dealt with only immovable property i.e. land). Notwithstanding the repeal of the 1894 and 1948 Land Acquisition Acts all proceedings and matters relating to the acquisition and requisition of property under these Acts (including applications and appeals pending before any Arbitrator or Court) continue to be heard or disposed of as if these Acts were still in force. Below follows a review of the most important features of the 1982 Ordinance. Wherever necessary, references are also made to relevant administrative regulations and instructions. In accordance with the Ordinance, the legal process is initiated by an application from the requiring Body, which can be any governmental or non-governmental agency. The Ordinance covers the case of temporary requisition (in part III) of property for a public purpose or in the public interest. With prior approval of the government the DC can decide on the requisition of any property for a period of two years. No prior approval will however be required in case of emergency requisition (Sec-18). But with prior approval of the GOB requisition period may extend more than two years. The DC may take possession of the requisition after, serving the requisition order. The amount of compensation will be equal to the estimated rent which would have been payable for the use and occupation of the property if it had been taken on lease for that period plus compensation for estimated expenses for vacating and re-occupying the property (Sec-20). If a person is not satisfied with the amount of compensation, or there is a dispute over ownership, the DC may deposit the money in the Public Account (Sec-21). Page-12

14 A person who does not accept the award made by the DC may submit an application to the Arbitrator for revision of the award within 45 days from the date of notice of the award (Sec 28). The Arbitrator is a Government appointed Judicial Officer, not below the rank of Subordinate Judge (Sec. 27). A decision determined by the Arbitrator is higher than that decided by the DC. An additional compensation for delay at the rate of 10 percent per annual may be paid (Sec 32). As per amendment of 1994 the Arbitrator can not defer the compensation amount more than 10 times of the DC's Awards (Sec-31). An appeal against the decision by the Arbitrator can be made to an Arbitration Appellate Tribunal, which consists of a member appointed by the government from among persons who are or have been District Judges. A decision of the said Tribunal shall be final (Sec- 34) Land Acquisition/Requisition Procedures Land acquisition/requisition requires interaction between, on the one hand, the Requiring Body (RB), which normally is a national infrastructure development government agency, such as the Water Development Board (BWDB), Bangladesh Power Development Board (BPDB), etc. in the present case the PGCL. And, on the other hand, the Acquiring Body (AB) which normally is the Ministry of Land which delegates some of its authority to the Deputy Commissioner at the District level or the Commissioner at the divisional level. The division of responsibility between the Requiring Body and the Acquiring Body is in broad terms that the Requiring Body provides the technical input and the Acquiring Body the legal input in the land acquisition/requisition process. It is the Requiring Body which must ensure that the project, which is the basis for the acquisition/requisition of land, is approved by the authorities and that funds are available. The Requiring Body must also justify the need for land and other property on the basis of field surveys including detailed engineering design and prepare all necessary documents required for decision making. At this stage the Acquiring Body processes the land acquisition/requisition cases including determination of the level of compensation and payment to the concerned people. When land acquisition/requisition is completed, the land is handed over to the requiring Body. The legal aspects of the land acquisition/requisition process starts with the RB submitting an application to the Deputy Commissioner with a request to borrow land for a specific purpose. The procedures for dealing with land requisition matters are established in a Government Memo dated October In respect of proposals in the water resources sector, the Water Development Board issues additional guidelines. The proposal must contain the following items: A Pro-forma indicating the amount of land required, a time-table for the requisition of land and the purpose for which the land is to be borrowed; A Layout Plan, which shows the location of the project on a map; A Site Plan, showing the alignment in red ink on a Mouza map; A Land Schedule showing classification of land and ownership of plots to be borrowed; Certificate of Minimum Requirement, issued by the Requiring Body stating that the quantity of land proposed for requisition is the absolute minimum for a proper implementation of the project; and Administrative Approval, comprising a copy of approved Project Pro-forma. After receiving the proposal, the DC will arrange for field verification, jointly with the staff of the Requiring Body. This includes a classification of the land to be borrowed and an identification of trees and standing crops of value, which are involved. Page-13

15 The Requiring Body's application is then submitted to the District Land Allocation Committee (DLAC) or the Divisional Land Allocation Committee (depending on the amount of land required) for the allocation of land. The latter may in turn refer the proposal to the Central Land Acquisition Committee (CLAC) for a decision. After clearance by the relevant land Allocation Committee the DC issues the preliminary notice and, if required, hears objections against the proposed requisition. If there are no objections, the DC may give the formal approval for land requisition under the condition that the area to be borrowed covers less than ten standard bighas. However, if there are objections and/or the requisition is above ten standard bighas of land, the DC submits the application to the Commissioner or the Ministry of Land for the final approval. The DC's submission shall be accompanied by the DLAC's clearance, the DC's report on the objection petitions and information on the number of households likely to be affected. In respect of projects executed by the Upazila Parishad. The government has authorized the Divisional Commissioner to make the final decision even if the land to be borrowed is above 10 bighas. After the final approval by the Government I Commissioner/Deputy Commissioner (as the case may be), the case is referred back to the DC for the assessment of compensation and the identification of the owner of the plots to be borrowed. With the final approval to borrow land, the requiring body must place required funds for payment of compensation with the DC. If the Requiring Body fails to do that within sixty days from the date of receipt of the estimate for DC, for no fault of the person interested all proceedings shall stand abated and a declaration to that effect by the DC will be published in the official Gazette (Sec. -12). Compensation is paid by the DC's office. There are no specific rules on where or in which form compensation should be paid. Normally smaller amounts appear, to be paid in cash whereas larger amounts are paid by cheques to persons who are identified by the Mayor or Ward commissioner or by gazetted officers. In case the rightful owner of the plot of land cannot be identified or there is conflict over ownership or the distribution of compensation funds are deposited in the Public Account of the Republic. In case the person does not accept the award of compensation the person can go for Arbitrator according to the provisions of the land Acquisition and Requisition Ordinance of 1982 or the Emergency Land Acquisition Act of After payment of compensation the temporary possession of the land is formally transferred to the Requiring Body Objection against Requisition An aggrieved party has the right to raise objection to the decision of the Deputy Commissioner to borrow his property. To exercise this right the party in question will have to refer his objection in writing within 15 days after the publication of the acquisition/requisition notice. The Deputy Commissioner will then give the objector the opportunity of being heard either in person or by an agent. After hearing the objection and making further inquiry, if necessary, the Deputy Commissioner will prepare a report in this connection within a period of the month. In case the land/property to be borrowed exceeds 50 standard bighas, the Deputy Commissioner will submit the record of the proceedings along with his report to the Government (in the Ministry of Land I Property Minister) for a decision. When it is not so, the recorded proceedings and the report will go to the Divisional Commissioner for a decision. The decision in either case will be final. Page-14

16 Once decision has been made for borrowing any property the Deputy Commissioner will serve notice in the prescribed manner to the effect that the property in question is to be borrowed and that possession of the same will be taken and that claims to compensation by the concerned parties can be made to him (DC). Such notice and will give detailed particulars of the property in question and ask the concerned parties to appear before the Deputy Commissioner in person, not before 15 days after publication of the notice, to claim compensation according to rules. Such notice will also be served upon the occupier and all other sharers if any of the property in question Compensation for Requisitioned Property The Deputy Commissioner (DC), after examining the claims of compensation, will make an award of compensation for the property. He will also divide the compensation among all other sharers, if there is any. Award of Compensation by DC. (1) Where any property is requisitioned, there shall be paid compensation, the amount of which shall be determined in the manner and in accordance with the principles set out in the section 20. (2) The DC shall, after giving the persons interested an opportunity of being heard in respect of their respective interests in the property and the amount and particulars of their claims to compensation for such interests and having regard to the provisions of sub-section (5), make an award of: (a) the compensation in the manner as may be prescribed; and (b) the apportionment of the said compensation among all the persons known or believed to be interested in the property, of whom, or of whose claims, he has information. (3) The award made by the DC shall, except as hereinafter provided, be final. (4) The DC shall give immediate notice of his award to the persons interested. (5) The amount of compensation payable for requisition of any property shall consist of: (a) a recurring payment, in respect of the period of requisition, of sum equal to the rent which would have been payable for the use and occupation of the property if it had been taken on lease for that period, and (b) such sum, if any, as any be found necessary to compensate the persons interested for all or any of the following matters, namely: (i) (ii) (iii) expenses on account of vacating the requisitioned property; expenses on account of re-occupying the property upon release from requisition; and damages, other than normal wear and tear, caused to the property during the period of requisition, including the expenses that may have to be incurred for restoring the property to the condition in which it was at the time of requisition. (6) Where any property is kept under requisition for more than two years, the DC shall revise his award regarding the amount payable as compensation under sub-section (5) (a). Page-15

17 3.1.5 Matters to be Considered in Determining Compensation In determining the amount of compensation, the Deputy Commissioner will take into consideration the following factors: Cost of standing crops or trees on the land/property at the time of taking its possession by the Deputy Commissioner. Dislocation from his other properties, if any. Injuries/adverse effect on his other properties or his income. Reasonable income of the property in between the service of notice and possession of the property taken by the Deputy Commissioner. Cost of damage of the road structure at the time of installation of gas pipeline alignment will be taken by Deputy Commissioner Problems of Valuation and Compensation The practice of not registering inherited land and property in the name of the present owner; in combination with an outdated and disorganized land record system means that the identification of the recipients of compensation becomes very time consuming. The imperfect land record system also provides scope for manipulations. In many reported cases, payment is not made in full, even if there is an agreement between the parties. A field survey reported that nearly 90 percent of the concerned households incurred extra legal expenses. In the assessment of land acquisition for the construction of Jamuna Multipurpose Bridge, it was reported that the recipients had to pay the officials around ten percent of the awarded compensation as a service charge. Non-payment or delayed payment of compensation is, however, not only due to a slow functioning of the district administration. The policy of disbursing government funds for land acquisition in three or four installments, spread out over the year, means that the district administration may not have sufficient funds available when payment is due. The property owners incur high transaction expenses for travelling to and from the district office to claim the rights and to receive compensation. Objections against acquisition are often heard and payment of compensation is normally done in the district town. This means that the recipients not only face high costs for travelling to the district town, but also lose income Time Frame (a) (b) (c) Payment of compensation must be made before the authority takes possession of the property (Ordinance of 1982). Compensation must be paid or deposited within a period of one year from the date of decision of requisition. All proceedings shall stand abated on the expiry of that period (Ordinance 1982). Persons with interest or right over the property to be acquired have 10 days in the 1989 Act and 15 days in the 1982 Ordinance to submit claims for compensation. The 1989 Act emphasizes quicker compensation by introducing the concept of provisional compensation" which is to be determined within 10 days of the order of requisition Land can be borrowed on payment of provisional compensation. However, the final compensation is to be determined within three months from the date of requisition. Page-16

18 The administrative set up for land administration has two tiers under the Ministry of Land Administration and Land. At the Divisional level there is an Additional Commissioner dealing with land administration under the Commissioner. At the District level there is an Additional Deputy Commissioner in charge of land administration. Under him there is at least one land Acquisition Officer and several Assistant Land Acquisition Officers. The number of officers depends on the size of the District Dhaka, as an example, has five Land Acquisition Officers. Non-gazetted officers include Kanungos (normally two per district but more in larger districts), surveyors, etc. 3.2 ADB's Policy on Involuntary Resettlement The basic guiding principle of ADB's Policy on Involuntary Resettlement (approved in November 1995) is that the affected people should be "compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. ADB s Policy also stipulates that the absence of formal legal title to land by some affected groups should not be a bar to compensation. A. Rationale Until recently, development-induced displacement of population was considered a "sacrifice" some people have to make for the larger good. Resettlement programs in general were limited to statutory monetary compensation for land acquired for the project, and occasionally development of a resettlement site. However, perceptions are changing because of delays in project implementation and benefits foregone; growing awareness about the potential adverse economic, social, and environmental consequences of population displacement; and increasing concern about people's welfare. Resettlement is viewed increasingly as a development issue. Policy makers, planners, and development practitioners have come to accept that inadequate attention to resettlement does not pay in the long run; and costs of implementation problems caused by lack of good involuntary resettlement can far exceed the costs of proper resettlement. Furthermore, impoverished people are a drain on the national economy; thus, avoiding or minimizing displacement as well as proper rehabilitation of those displaced make good economic sense as well as being fair to those adversely affected. The Bank and its DMCs should see these changes in perceptions as an opportunity rather than an impediment. With the recent renewed emphasis on project quality and impact, the focus on affected persons and their welfare should (i) improve the way development projects are conceived, planned, and implemented; and (ii) make development not only economically but also socially and environmentally beneficial. This approach is in tune with the twin objectives of poverty reduction and sustainable economic growth. The Bank's Guidelines for Social Analysis of Development Projects, issued in June 1991 incorporated the essential features of OD 4.30 in an appendix.' More recently, the President issued instructions to staff to adhere to the principles and approaches in OD 4.30 to deal with involuntary resettlement in Bank operations, pending formal adoption of a Bank policy on the subject. Formal adoption and implementation of a policy on involuntary resettlement is necessary to promote consistent improvements in Bank assistance to DMCs in this sensitive area. A policy on involuntary resettlement is necessary to (i) spell out the objectives and approaches, (ii) set the standards in Bank operations, (iii) provide staff with a clear perspective on the issues, (iv) assist borrowers in addressing the issues, and (v) adopt formal procedures to address systematically these aspects in Bank operations. Page-17

19 B. Bank Policy The objectives of the Bank's policy on involuntary resettlement should be to (i) avoid involuntary resettlement wherever feasible; and (ii) minimize resettlement where population displacement is unavoidable, and ensure that displaced people receive assistance, preferably under the project, so that they would be at least as well-off as they would have been in the absence of the project, as contemplated in the following paragraphs. Involuntary resettlement should be an important consideration in project identification. The three important elements of involuntary resettlement are (i) compensation for lost assets and loss of livelihood and income, (ii) assistance for relocation including provision of relocation sites with appropriate facilities and services, and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in projects involving involuntary resettlement. For any project that requires relocating people, resettlement should be an integral part of project design and should be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: (i) Involuntary resettlement should be avoided where feasible. (ii) Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (iii) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (iv) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate timebound actions and budgets. Resettlers should be provided sufficient resources and opportunities to reestablish their homes and livelihoods as soon as possible. (v) The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. (vi) Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (vii) The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other nonresidents who wish to take advantage of such benefits. Particular attention should be paid to the needs of the poorest affected persons including those without legal title to assets, female-headed Page-18