ABBREVIATED RESETTLEMENT AND COMPENSATION ACTION PLAN

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ABBREVIATED RESETTLEMENT AND COMPENSATION ACTION PLAN SOUTH ASIA ENERGY MANAGEMENT SYSTEMS NYAMWAMBA HYDROPOWER PROJECT KILEMBE SUB-COUNTY KASESE DISTRICT VS HYDRO (PVT) LIMITED CACL CONSULT LTD DECEMBER 2010

2 THE RAP STUDY TEAM This is to certify that the Resettlement and Compensation Action Plan for the proposed Nyamwamba small hydro power project in Kilembe Sub county was conducted under our direct supervision and the information provided in this report is correct to the best of our knowledge. Name Responsibility Signature Mr. Ochola Bernard Lead Sociologist Mr. Tumusiime Alfred Environment Systems Analyst Ms. Aisu Elizabeth Sociologist Mr. Balinda S. Birungi Valuer Mr. Otwane Ben Land Surveyor South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd ii

3 TABLE OF CONTENTS THE RAP STUDY TEAM... ii LIST OF ACRONYMS... vi KEY DEFINITIONS... vii EXECUTIVE SUMMARY... iv 1 INTRODUCTION Project General Background Brief project description Associated facilities Approach and Methodology Limitations LEGAL AND INSTITUTIONAL FRAMEWORK Institutional Framework Central Level Decentralized Level Applicable laws of the Republic of Uganda Overview The 1995 Constitution The Electricity Act, The Land Act Land Tenure Regimes and Transfer of Land International requirements Gap Analysis SOCIAL ECONOMIC BASELINE Introduction Objectives of social economic studies General background Administrative sub divisions Land use and settlement General demographic information Religious profiles of house hold heads Land tenure Livelihoods Occupation Agriculture Crop production Other sources of livelihoods Households incomes Health and sanitation Availability of health services Fuel sources IMPACTS OF THE PROJECT Introduction Impact on land Impact on structures Impact on residential structures Impact on other structures Impact on public and community institutions Impact on people and livelihood Physically Displaced People Economically Displaced People Total Number of Affected Households South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd iii

4 4.4.4 Temporary land requirements for construction Shrines and other cultural features Other General Impacts Positive Impacts PUBLIC CONSULTATION Introduction Consultations Summary of issues raised by PAPs during consultations COMPENSATION AND RESETTLEMENT STRATEGY Key principles Eligibility for Compensation General Approach of Compensation and Resettlement Census and Cut off Date Basis for Valuation of Losses Speculative Structures Entitlements Categories of Affected people Vulnerable people Compensation and resettlement packages Primary Entitlement Measures Compensation for loss of land Compensation for loss of crops Compensation for loss of structures Cash Compensation Principles Compensation Rates Structures Compensation Rates Crops Compensation Rates Moving Disturbance Allowance Salvaging CONSULTATION WITH PAPS ON COMPENSATION OPTIONS Option Disclosure at Sub County and Village Level Individual Disclosure Meetings Local Cash Compensation Review Committees LIVELIHOOD RESTORATION Overview Eligibility Payment Principles Payment Procedure GRIEVANCE REDRESS MECHANISM Overview Likely Types of Grievances and Disputes Grievances Redress Procedure COMMUNITY DEVELOPMENT PLAN Priority Areas of Emphasis in the Community Development Plan MONITORING AND REPORTING PLAN Overview Internal Monitoring External Monitoring Compliance and Completion Audits Overview Compliance Reviews South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd iv

5 Completion Audit OUTCOME EVALUATION Indicators for Outcome Evaluation Implementation of Outcome Evaluation IMPLEMENTATION OF THE RAP Overview Involvement of Other Parties BUDGET Overview ANNEXES ANNEX 1: FGD DISCUSSION ON THE SOCIAL ECONOMIC ASPECTS AND KEY INFORMANT INTERVIEWS 60 ANNEX 2: LIST OF PEOPLE AND INSTITUTIONS CONSULTED ANNEX 3: HOUSE HOLD QUESTIONNAIRE ANNEX 4: FGD GUIDE ANNEX 5: KEY INFORMANTS INTERVIEW GUIDE ANNEX 6: IDENTIFICATION AND VALUATION DOSSIER ANNEX 7: STRIP MAPS FOR LAND TO BE ACQUIRED South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd v

6 LIST OF ACRONYMS AIDS DWD EIA GoU HPP IFC IFI LC MW NEMA RAP RoW SEA TOR UGX Acquired Immunodeficiency Syndrome Department of Water Development Environmental Impact Assessment Government of Uganda HydroPower Project International Finance Corporation International Financial Institutions Local Council MegaWatt National Environmental Management Authority Resettlement Action Plan Right of Way Social and Environmental Assessment Terms of Reference Uganda Shilling South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd vi

7 KEY DEFINITIONS Note: Several of the definitions below are sourced from the IFC s Handbook for Preparing a Resettlement Action Plan, 2001, with or without modifications as relevant to this Project. Project: The project, to be developed by SAEMS, shall have an installed capacity of 14 MW, and once commissioned is expected to feed in approximately 50 Mn. Units annually, to the national electric grid. Project Affected Area: An area which is subject to a change in use as a result of the construction or operation of the Project. Project Affected Person (PAP): Any person who, as a result of the implementation of the Project, loses the right to own, use, or otherwise benefit from a built structure, land (residential, agricultural, pasture or undeveloped/unused land), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily. Not all PAP need to move due to the Project. PAP may include: Physically Displaced People, ie people subject to Physical Displacement as defined hereunder, Economically Displaced People, ie people subject to Economic Displacement as defined hereunder. Physical Displacement: Loss of shelter and assets resulting from the acquisition of land associated with the Project that requires the affected person(s) to move to another location. Economic Displacement: Loss of income streams or means of livelihood resulting from land acquisition or obstructed access to resources (land, water or forest) caused by the construction or operation of the Project or its associated facilities. Not all economically displaced people need to relocate due to the Project. Project Affected Household (PAH): A PAH is a household that includes one or several Project Affected Persons as defined above. A PAH will usually include a head of household, his/her spouse and their children, but may also include other dependents living in the same dwelling or set of dwellings, like close relatives (e.g., parents, grandchildren). Compensation: Payment in cash or in kind at replacement value for an asset or a resource that is acquired or affected by the Project at the time the assets need to be replaced. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd vii

8 Resettlement Assistance: Support provided to people who are physically displaced by the Project. Assistance may include transportation, and social or other services that are provided to affected people during their relocation. Assistance may also include cash allowances that compensate affected people for the inconvenience associated with resettlement and defray the expenses of a transition to a new locale, such as moving expenses and lost work days. Replacement Value: The rate of compensation for lost assets must be calculated at full replacement value, that of the assets plus transaction costs (taxes, registration fees, cost of transport associated with registration of new land and land transfer, etc ). The replacement value must reflect the cost at the time the item must be replaced. With regard to land and structures, replacement value is defined as follows: Agricultural land: the market value of land of equal productive use or potential located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land, plus the cost of any registration and transfer taxes; Land in urban areas: the market value of land of equal size and use, with similar or improved public infrastructure facilities and services, preferably located in the vicinity of the affected land, plus the cost of any registration and transfer taxes; Household and public structures: the cost of purchasing or building a new structure, with an area and quality similar to or better than those of the affected structure, or of repairing a partially affected structure, including labor and contractors fees and any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of the benefits to be derived from the Project deducted from the valuation of an affected asset. Vulnerable Groups: People who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd viii

9 EXECUTIVE SUMMARY The project The river Nyamwamba, is one of the several rivers that originate in the upper slopes of the Rwenzori Mountains, and flow down the Eastern face of the mighty Rwenzori Mountains,and joins the Semiliki river through lakes George and Edward in the Western Rift Valley of Uganda. The proposal is to harness the hydropower potential of the river Nyamwamba as it drops down 200 m in a series of rapids, in the Kilembe mines area. The project, to be developed by SAEMS, shall have an installed capacity of 14 MW, and once commissioned is expected to feed in approximately 50 Mn. Units annually, to the national electric grid. The scope of this RAP is to provide details on (i) the populations to be affected, (ii) the regulation framework, (iii) the methods used for identification of Project Affected Persons (PAP), (iv) the methods and scope of consultation with PAP on resettlement issues, (v) the resettlement and compensation packages, (vi) the methods and planning of resettlement and compensation, (vii) the institutional arrangements for the implementation of the RAP, (viii) the cost of the RAP, (ix) special assistance to vulnerable PAP, and (x) external and internal monitoring. The legal and Policy background Both the SEA and this RAP have been prepared to comply with the National Environment management Authority (NEMA), the Ugandan agency in charge of environmental protection. This document has been prepared in accordance with FMO BANK RAP requirements, as they stand in performance standards Hand book for preparing a Resettlement Action Plan and OP 4.12 Involuntary Resettlement. The constitution (1995), the land Act (1998) and the Electricity Act (1999) are the main Ugandan laws applicable as far as acquisition of land for public interest, compensation and resettlement are concerned. The constitution provides that compensation shall be fair adequate and prompt. Both the constitution and the Land Act make specific provisions to protect the rights of spouses and the children. Specifically, the prior consent of the spouse is required in writing before land transaction can occur. Land management and control of land transactions are decentralized at the district and the parish levels, according to the general frame work of decentralized powers in Uganda. Some aspects of the WBG requirements are more favorable to the project affected Persons than the Ugandan regulations in terms of compensation amounts (valuation at full replacement value as per FMO BANK instead of depreciated cost as per the South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd iv

10 Ugandan laws) and in terms of resettlement (FMO BANK strongly recommends land for land compensation while there is no such provision to that effect in the Ugandan law). For this project, specific uplifts are intended at fully meeting the FMO BANK requirements on top of the Ugandan requisites. Project impacts Project impacts Land Land affected by the construction and operation of the interconnection system falls into the following categories; Intake canal Canal spill way Main canal intake gate Open head race canal Fore bay Fore bay spill way Penstock Power house. Temporary land needs for construction purposes. During construction, some areas may have to be temporarily occupied by the contractors in charge of construction. Owners and occupants will be compensated against the loss of crops if any, and will receive a rent from the contractors for temporary occupation. There will be no transfer of rights in this case. Damaged crops will be compensated for, as required. Project impacts People Physically displaced people Physically displaced people are people whose residence has to be displaced because it is located in the project land acquisition area. Economically displaced people Economically displaced people are defined here as people whose livelihoods are affected by the project land acquisition to such an extent that, even if they are not physically displaced, they will have to move to regain similar economic opportunities. In an agricultural setting, this is usually the case because people are affected by acquisition of a significant proportion of the land they farm on that leaves the remainder unsustainable. Total number of affected persons It is expected that about 92 households are affected by the project land acquisition. This number includes 3 physically displaced households and 89 potentially economically displaced households. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd v

11 Project impact Summary The following table below summarizes Project impacts on land, structures and people. Table 0.1 showing summary of project impacts on land, structures and people. Impact Value Unit Surface Area of Right Of Way (permanent land take) 7.6 hectares 1 Kilembe Mines Ltd Total Surface Area Required for the Project 7.6 hectares 92 households Number of Affected Households 7.6 hectares 92 households Number of households with affected crops 83 Permanent houses 2 Semi permanent houses 1 Permanent shade structures 2 Permanent wall fence 1 Reed fences 19 Semi permanent structures for poultry 3 Barbed wire fences 3 DSTV stands 4 Metallic sign posts 2 Earth graves 2 Public Infrastructure electricity poles 14 Principles for compensation and resettlement The key principles committed upon by Nyamwamba hydro power project in this RAP are the following; Resettlement and compensation of project affected people will be carried out in accordance with Ugandan legislation, IFC s performance standard 5 and WB OP All physically or economically displaced people will be offered an option between either a full resettlement package, including the provision of replacement residential land and a house, or cash compensation, Past experience in Uganda has shown that cash compensation, although very sought after by many household heads, could be detrimental in the medium term, to other household members, particularly the females and children; the Project will make every effort to promote resettlement rather than cash compensation, and this plan is designed accordingly, The RAP implementation and outcomes will be monitored and evaluated as part of a transparent process, South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd vi

12 Grievance Management In practice, in similar compensation and resettlement activities, many grievances arise from misunderstandings of the Project policy, or result from conflicts between neighbors, which can usually be solved through adequate mediation using customary rules or local administration at the lowest level. Most grievances can be settled with additional explanation efforts and some mediation using customary dispute settlement mechanisms. The Project, thus, will put in place an amicable, extra judicial mechanism for managing grievances and disputes based on explanation and mediation by third parties. Procedures relevant to this amicable mechanism are detailed below. It will include three different levels: Registration by Nyamwamba Hydropower project of the complaint, grievance or dispute; Processing by Nyamwamba Hydropower project of the grievance or dispute until closure is established based on evidence that acceptable action was taken; and In the event where the complainant is not satisfied with action taken by Nyamwamba Hydropower project as a result of the complaint, an amicable mediation can be triggered involving a mediation committee independent from the Project. Vulnerable People Vulnerable people include: Disabled people or people suffering from serious illnesses, Orphans, widows and the elderly, Women and children at risk of being dispossessed of their productive assets land as a result of the land compensation process that may solely benefit the male household head. Assistance shall take the following forms, depending upon vulnerable peoples requests and needs: Assistance in the compensation payment procedure (going to the bank with the person to cash the cheque); Assistance in the post payment period to secure the compensation money; South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd vii

13 Assistance in moving: providing vehicle, driver and facilitation at the moving stage, providing ambulance services for disabled persons during moving; Assistance in building: providing materials, workforce, or building houses; Health care if required at critical periods: moving and transition period. Monitoring & Evaluation Monitoring, evaluation and auditing are key components of the Resettlement and Compensation Action Plan and is an integral part of Nyamwamba Hydropower project s responsibility and obligations. These components have the following general objectives: Monitoring (as defined here) looks at progress of resettlement and compensation and at specific situations of economic or social difficulties arising from the implementation of the compensation and resettlement process, Auditing (as defined here) looks at compliance and completion of the resettlement program, Evaluation (as defined here) looks at outcomes, through an assessment of the short mid and long term impacts of the compensation and resettlement programme on affected households, their incomes and standards of living, the environment, local capacities, housing, etc. Budget The budget for implementation of the RAP is has been derived from the summation of all evaluated individual costs including the actual acquisition of land from Kilembe Mines. The budgeted cost is Uganda Shillings 571,605,737 (Five Hundred Seventy one Million, Six Hundred and Five Thousand, Seventy Three Hundred and Seven) table 21 shows details of amount of value attached to each category of compensation and other costs. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd viii

14 1 INTRODUCTION 1.1 Project General Background The Nyamwamba Hydropower Project is proposing to harness the hydropower potential of the river Nyamwamba as it drops down 200 m in a series of rapids, in the Kilembe mines area. The project, to be developed by SAEMS, shall have an installed capacity of 14 MW, and once commissioned is expected to feed in approximately 50 Mn. Units annually, to the national electric grid. The project shall harness the hydro potential of the river Nyamwamba, which is formed with the confluence of the tributaries Nyamwamba, Muhamburi, Kamsongi and Njuranja. These tributaries, originating in the higher elevations of the Rwenzori mountains, confluence just upstream of the proposed take off point, which is located at E, N, and at elevation 1078 m AMSL. Nyamwamba Hydropower project and SAEMS will be required to prepare and submit for approvals of SEA documentation. The SEA documentation shall need to address the requirements of NEMA, the World Bank Group, and other lenders. This includes, amongst others, the preparation of a Resettlement Action Plan (RAP), as the Project entails impacts related with land acquisition and displacement. Nyamwamba Hydropower Project has based its preparation of this RAP on IFC s Performance Standard 5 Land Acquisition and Involuntary Resettlement. For the SEA assignment in general, SAEMS has appointed a consulting team to conduct and oversee the SEA tasks, manage the SEA process on behalf of Nyamwamba Hydropower project, and author the SEA documentation to comply with GoU and international lender requirements. 1.2 Brief project description The Nyamwamba project envisages the development of a 14 MW hydropower plant utilizing the Hydropower potential of the river Nyamwamba as it drops down over 200 m in a series of rapids, in and around the area where the Kilembe Copper mine is located. The river Nyamwamba originates in the high Montane forests of the Rwenzori mountains, and flows down eastwards to join Lake George just below the town of Kasese. South Asia Energy Management Systems Inc. (SAEMS), a leading renewable energy development company, invited VSHydro (Pvt) Ltd., a Sri Lankan company involved in development of hydropower projects, to propose suitable investment opportunities in hydropower projects in Uganda. The proposed hydroelectric project will involve construction and establishment of a dam/ reservoir, canal, penstock, power house and switchyard for the generation of electricity. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 1

15 1.3 Associated facilities Detailed descriptions of the projects are provided in the SEA documents, so that all interested parties will know exactly what Nyamwamba Hydropower Project is proposing and seeking approval for as well as what SAEMS is proposing and seeking approval for. The detailed descriptions include all project components directly required for, and ancillary to, both the project hydrology and hydropower generation components of the project. River Nyamwamba in Kyanjuki village at the point proposed for dam Construction South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 2

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17 1.4 Approach and Methodology Different contracts were awarded to three different consultants to provide the following services; 1. Topographic survey of the canal length and delineation of the way leave and right of way 2. Identification of the land users, land owners and generally all stake holders holding interest in the delineated way leave and right of way and establish a map for the rout. 3. Valuation of all immovable including structures, trees, perennial and annual crops within the delineated way leave and right of way. In addition, another consultant was hired to conduct a social economic survey of all affected households (e.g House holds holding interest in land or immovable with in the delineated way leave and right of way) The studies commenced in July 2009 with physical surveys, PAP identification, property valuation and administration of social economic surveys and concluded in October The whole exercise was monitored by the local leaders who provided valuable advice, were an avenue for PAP to lodge complaints and grievances and flagged a number of issues for consideration by the project sponsors and their consultants. The valuation forms used by the study surveyors and valuers can be found in the appendix. The social economic questionnaire used can also be found in the appendix. 1.5 Limitations During the identification and valuation exercise, it was discovered that extensive speculation was taking place as an attempt to maximise compensation. In general, it was found that, Kilembe Mines owns nearly all the land required by the project but the sitting tenants want the project to compensate them as if they were the substantive land owners. Kilembe mines went into an agreement with the local people and secured a lease of 99 years. However, Kilembe mines were required to compensate all people for their land before the lease agreement came into effect. Currently, Kilembe mines holds the land title and it is legally the substantive land owner although complains of unsettled claims in form of compensation repetitively came out from the PAPs during the assessment. In terms of the social economic base line information and assessment of the displacement impacts, these speculative attempts might potentially present challenges in handling the compensation and resettlement process in an orderly and acceptable way which points to the need for further consultations. However, these speculative activities do not affect much the results of land and structure valuation. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 4

18 The document is structured in two volumes; Volume 1: (Main Report). This presents the Baseline data relating to the socio economic set up of the area, the physical characteristics of the area as well as the numbers of households affected both physically and economically. This volume has specific sections for proposed mitigation measures, cost implications for such as well as monitoring and evaluation plans Volume 2: (Survey and Valuation Report) This includes the Strip Maps and compensation costing for the individual developments and land. This also includes the master list of all affected households/persons/entities. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 5

19 2 LEGAL AND INSTITUTIONAL FRAMEWORK 2.1 Institutional Framework Central Level The Ministry of Lands, Housing and Urban Development is responsible for policy, regulation and coordination of matters pertaining to land in Uganda. Land management is decentralised by the Land Act between the District Land Boards and the Uganda Land Commission (ULC). The District Land Boards are responsible for the management of land in the districts and ULC manages all land vested in the Government of Uganda. Within this Ministry, the Chief Government Valuer s Office deals with valuation of assets in connection with the acquisition of land for public interest. The Uganda Land Commission (ULC) is in charge of holding and managing all Government land. The Land Act details ULC mandate. The Ministry of State for Disaster Preparedness, under the Office of the Prime Minister, is responsible for resettlement of refugees and persons displaced by disasters. The experience of this Ministry in managing resettlement is important although the circumstances of displacement are very different from these prevailing on this project. There is no central ministry or department responsible for resettlement or compensation as such although it is understood that a national policy on re settlement is soon to be developed. The Ministry of Agriculture, Animal Industry and Fisheries has responsibilities relating to overall rural development. The Ministry of Gender, Labour and Social Development has responsibilities for the social and economic welfare of the population including cultural affairs, youth, labour and disadvantaged groups. The Ministry of Local Government is responsible for local administration. The National Environment Management Authority (NEMA) is responsible for environmental affairs and in particular the supervision and review of Environmental Impact Assessments Decentralized Level In the last few years, the government of Uganda has been pursuing a policy of decentralization of functions to district level in an effort to stimulate economic and community development, to facilitate a higher degree of transparency in government administration and greater accountability in the use of public funds and resources. The country is presently divided into some 102 Districts, which are responsible for an increasing range of functions including economic planning, statistics, information gathering, agriculture, health, education and land administration. Each district has a South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 6

20 Resident District Commissioner (RDC) who is appointed by the President as his/her representative in each district. The RDC is not the political head of the district but is responsible for coordinating the central government policies and departments activities at the district level. Within each district the system of local government includes five levels: LC5 District level LC4 County level LC3 Sub county level LC2 Parish level LC1 Village level Local Councils are responsible for local policy matters, economic development, resolving local conflicts and providing orderly leadership and democratic practices at the grass roots level in their respective areas. The system has facilitated mass participation in government affairs and awakened the rural population to their rights of citizenship and obligations particularly regarding their involvement in development programmes and projects in their areas. Matters pertaining to land mainly involve Land Boards and Committees at Parish level (Parish Land Committee), at District level (District Land Board). 2.2 Applicable laws of the Republic of Uganda Overview Applicable laws with relevance to land tenure, compensation and resettlement, are the following: The Constitution of the Republic of Uganda, 1995 The Land Act, 1998 The Land Acquisition Act, 1965 The Electricity Act, The 1995 Constitution The 1995 Constitution restored all private land tenure regimes (which had previously been abolished under the Land Reform Decree 1975 during the Amin regime), divested the state and the Uganda Land Commission of radical title to the land that was expropriated in 1975, and vested this directly in the citizens of Uganda. The Constitution prescribes the tenure regimes in accordance with which rights and interests in land may be held. These are listed as customary, freehold, mailo and leasehold. It also creates for the government and local authorities a statutory power of compulsory acquisition of land in the public interest, and makes provision; inter alia, for the prompt payment of fair and adequate compensation prior to the taking of possession of the property. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 7

21 2.2.3 The Electricity Act, 1999 S.54 of the Electricity Act requires every person intending to construct, own or operate a transmission line to obtain a transmission license. The application for the transmission license is submitted to the Electricity Regulatory Authority (ERA), which is mandated with the issuance of such licenses. The ERA is required to review the various aspects of the proposed project including the impacts of the project on electricity supply, socioeconomics, cultural heritage, the environment, natural resources and wildlife prior to making of the decision whether to grant the license. As per the Electricity Act, South Asia Energy Management Systems Inc. (SAEMS) is a licensee of the ERA for the Nyamwamba Hydropower Project. Part VIII of the Act provides for acquisition of land. Under S.68 (1)(d), a licensee for transmission or his or her representative is authorized, inter alia, to enter any land private or public to perform any activity necessary for establishing, constructing, repairing, improving, examining, altering or removing an electric supply line. However, in undertaking such activity, the licensee is required to do as little damage as possible to the land and the environment and is required to ensure prompt payment of fair and adequate compensation to all interested parties for any damage or loss sustained (S.68 (3)). Further, under S.68 (2), a licensee or his or her representative does not acquire any other right in the land other than the right of user of the land under, over, across, in or upon which the electric supply line or post is placed. Under S.68 (4), prior to entering any private land, a licensee or his or her representative, is required to give 60 days notice to the owner of the land, stating as fully and accurately as possible the nature and extent of acts intended to be done. Sensitisation meetings were also held in all villages transgressed by the project infrastructure The Land Act 1998 In general, the Act addresses four issues namely, holding, control, management and dispute processing. As regards tenure, the Act repeats, in Section 3, the provisions of Article 237 of the Constitution which vests all land in the citizens of Uganda, to be held under customary, freehold, mailo or leasehold tenure systems. It then defines the incidence of each tenure regime (s.4), provides mechanisms of the acquisition of certificates of customary ownership (ss.5 9), or the conversion of customary tenure to freehold (ss.10 15), or collective management of land held under customary law (ss.16 27), the protection of the rights of women, children and persons with disability (s.28), the conversion of leasehold into freehold (s.29), the security of tenure for tenants by occupancy (ss.30 39), and the creation of a Land Fund to assist various people wishing to obtain secure rights in land (s.42). Regarding control of land use, the Act addresses three issues. First it reaffirms the statutory power of compulsory acquisition conferred on the government and local South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 8

22 authorities under articles 26 (2) and 237(2) (a) of the Constitution (s.43). Since the Act does not repeal the Land Acquisition Act No. 14 of 1965, it is assumed that this legislation, with appropriate modification, meets the requirements of Article 26(2) of the Constitution which requires that a law be in place for the payment of compensation and access to the courts, Second, the Act requires that land owners manage and utilise land in accordance with any law relating to land use and land use planning (ss.44 and 46). These include, but are not limited to, the Forest Act (Cap 246), the Mining Act (Cap 248), the National Environment Statute (No. 4 of 1995), the Water Statute (No.9 0f 1995), the Uganda Wildlife Statute (No.14 of 1996) and the Town and Country Planning Act (Cap.30). And third, it reaffirms the trust obligations of the government and local authorities in respect of certain natural resources under Article 237 (2)(b) of the Constitution (s.45). The provisions regarding land administration (referred to in the Act as management ) are the most elaborate. The Act creates a series of land administration institutions consisting of Parish Land Committees, District Lands Boards and Uganda Land Commission (ULC). Each of these levels is by and large autonomous of one another and is entrusted with functions that range from the holding of lands not subject to private ownership, the management of land thus held, the processing of applications for various grants and certificates, the registration and transfer of interest in land (ss.47 74). The ULC is, in addition, charged with the management and administration of the Land Fund. An equally decentralized system is created to process land disputes in the country (ss.75 90). The Act requires that Land Tribunals be established at all levels of local government and that all land disputes be first processed through them before any resort can be made to ordinary courts. No other organ, except informal traditional authority mediators (s.89) will henceforth have jurisdiction over land disputes (s.98). Thus the Act has opted for a process that is both localized and free from the formalities associated with judicial proceedings. Although the Land Act came into effect on July 2nd 1998, some facilities necessary for its operation are not yet in place, and may not be for some time. While ULC, District Land Boards, land offices and district registries are actually established, land tribunals, the land fund, together with the personnel needed to run them are only partially in place. The Land Act provides for acquisition of land or rights of use of land for execution of public works. A licensee under the Electricity Act is an Authorized Undertaker under the Land Act authorized to execute public works (S.68 (9)). S.74 of the Land Act provides for acquisition of land for execution of public works. Where it is necessary to execute any public works on any land, an authorized undertaker should seek to enter into mutual agreement with the occupier or owner of the land, and if no agreement is reached, the Minister responsible for land may compulsorily acquire the land. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 9

23 The Constitution of Uganda requires prompt payment of fair and adequate compensation where land is compulsorily acquired. Such compensation is assessed in accordance with the valuation principles laid out in S.78 of the Land Act, briefly outlined below: The value for customary land is the open market value of the unimproved land; The value of buildings on the land is taken at open market value for urban areas, and depreciated replacement cost for rural areas; The value of standing crops on the land is determined in accordance with the district compensation rates established by the respective District Land Board. Annual crops which could be harvested during the period of notice to vacate given to the landowner/ occupier of the land are normally excluded in determining the total compensation; In addition to the total compensation assessed, there is a disturbance allowance paid of fifteen per cent or, if less than six months notice to give up vacant possession is given, thirty per cent of the total sum assessed Land Tenure Regimes and Transfer of Land Definitions Article 237 of the Constitution, 1995, vests land in the citizens of Uganda and identifies four land tenure systems, namely: customary; freehold; mailo; and leasehold. The incidents of these systems are detailed under section 4 of the Land Act, Those relevant to the Nyamwamba Hydropower project are the following Customary tenure is governed by rules generally accepted as binding and authoritative by the class of persons to which it applies (in other words customary regime is not governed by written law ); is owned in perpetuity customary occupants are occupant of former public land, and occupy the land by virtue of their customary rights; they have proprietary interest in the land and are entitled to certificates of customary ownership; certificates for customary ownership may be acquired, through application to the Parish Land Committee and eventual issuance by the District Land Board; South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 10

24 Freehold tenure derives its legality from the Constitution and its incidents from the written law; involves the holding of land in perpetuity or for a period less than perpetuity fixed by a condition; enables the holder to exercise, subject to the law, full powers of ownership; Leasehold tenure is created either by contract or by operation of the law; is a form under which the landlord of lessor grants the tenant or lessee exclusive possession of the land, usually for a period defined and in return for a rent; the tenant has security of tenure and a proprietary interest in the land Right of spouse and children The rights of spouse and children are protected under the Constitution of Uganda and the Land Act. The consent of spouse and children must be acquired prior to any transaction on land on which the family ordinarily resides by the head of household. The Land Act, 1998, includes the following provisions under Section 40: quote No person shallo sell, exchange, transfer, pledge, mortgage or lease any land; or o enter into any contract for the sale, exchange, transfer, pledging, mortgage, lease of any land; o give away any land inter vivos, or enter into any transaction in respect of lando in the case of land on which the person ordinarily resides with his or her spouse, and from which they derive their sustenance, except with the prior written consent of the spouse; in the case of land on which the person ordinarily resides with his or her dependent children of majority age, except with the prior written consent of the dependent children of majority age; in the case of land on which the person ordinarily resides with his or her dependent children below the age of majority, except with the prior written consent of the Committee (2); in the case of land on which ordinarily reside orphans below majority age with interest in inheritance of the land, except with prior written consent of the Committee. Unquote South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 11

25 Compulsory acquisition Under Chapter Four (Protection and promotion of fundamental and other human rights and freedoms), Article 26 (Protection from deprivation of property), the Constitution states that: quote Every person has a right to own property either individually or in association with others No person shall be compulsorily deprived of property or any interest in or right over property of any description except where the following conditions are satisfied the taking of possession or acquisition is necessary for public use or in the interest of defence, public safety, public order, public morality or public health; and the compulsory taking of possession or acquisition of property is made under a law which make provisions forprompt payment of fair and adequate compensation, prior to the taking of possession or acquisition of the property; and a right to access to a court of law by any person who has an interest or right over the property. unquote The Land Acquisition Act, 1965, provides the incidents of compulsory acquisition. Although both the Constitution and the Land Act prevail upon the Land Acquisition Act, this latter remains good law for those provisions which are not inconsistent with these former. According to the Land Acquisition Act, compulsory acquisition procedural prerequisites are the following: a statutory instrument should be prepared and signed by the Minister responsible for Lands; This statutory instrument should be gazetted. Due to historical reasons, compulsory acquisition is a sensitive issue in Uganda Valuation and Compensation of Lost Assets Valuation and compensation are in accordance with rates set at district level for crops and non permanent structures. Rates are established and updated at District level, and are enacted by District Land Boards. Permanent structures are valuated on a caseby case basis. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 12

26 2.3 International requirements IFC s social and environmental policies, that SAEMS is committed to apply for the implementation of the Nyamwamba Hydropower project, have recently been restructured into one new overarching policy, the Policy on Social and Environmental Sustainability, and eight Performance Standards. This new policy is applicable since April 30, 2006, and the International Finance Corporation has later released guidance notes intended to guide in the implementation of each of the eight Performance Standards. The following provisions of the fifth Performance Standard (PS5) Land Acquisition and Involuntary Resettlement are identified as being of particular relevance to this RAP: PS5 reaffirms the concepts of physical displacement (loss of shelter) and of economic displaced (loss of means of livelihood); both Physically Displaced and Economically Displaced People are to be considered in resettlement planning; Stated objectives of resettlement planning should be: (quote) To avoid or at least minimize involuntary resettlement wherever feasible by exploring alternative project designs, To mitigate adverse social and economic impacts from land acquisition or restrictions on affected persons use of land by: (i) providing compensation for loss of assets at replacement cost; and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation, and the informed participation of those affected, To improve or at least restore the livelihoods and standards of living of displaced persons, To improve living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites (unquote) The Project is expected to offer displaced persons and communities compensation for loss of assets at full replacement cost and other assistance to help them improve or at least restore their standards of living or livelihoods, Where livelihoods of displaced persons are land based, or where land is collectively owned, the client will offer land based compensation, where feasible, The Project is to consult with and facilitate the informed participation of affected persons in decision making processes related to resettlement. Consultation will continue during the implementation, monitoring, and evaluation, South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 13

27 The Project is expected to establish a grievance mechanism consistent with Performance Standard 14 to receive and address specific concerns about compensation and relocation that are raised by displaced persons including a recourse mechanism designed to resolve disputes in an impartial manner, The Project is expected to carry out a census with appropriate socio economic baseline data to identify the persons who will be displaced by the project, to determine who will be eligible for compensation and assistance, and to discourage inflow of people who are ineligible for these benefits. In the absence of host government procedures, the client will establish a cut off date for eligibility. Information regarding the cut off date will be well documented and disseminated throughout the project area, If people living in the project area must move to another location, the client will: (i) offer displaced persons choices among feasible resettlement options, including adequate replacement housing or cash compensation where appropriate; and (ii) provide relocation assistance suited to the needs of each group of displaced persons, with particular attention paid to the needs of the poor and the vulnerable. Alternative housing and/or cash compensation will be made available prior to relocation. New resettlement sites built for displaced persons will offer improved living conditions. - If land acquisition for the project causes loss of income or livelihood, regardless of whether or not the affected people are physically displaced, the client will meet the following requirements: 3 Promptly compensate economically displaced persons for loss of assets or access to assets at full replacement cost In cases where land acquisition affects commercial structures, compensate the affected business owner for the cost of reestablishing commercial activities elsewhere, for lost net income during the period of transition, and for the costs of the transfer and reinstallation of the plant, machinery or other equipment Provide replacement property (e.g., agricultural or commercial sites) of equal or greater value, or cash compensation at full replacement cost where appropriate, to persons with legal rights or claims to land which are recognized or recognizable under the national laws Compensate economically displaced persons who are without legally recognizable claims to land for lost assets (such as crops, irrigation infrastructure and other improvements made to the land) other than land, at full replacement cost. The client is not required to compensate or assist opportunistic settlers who encroach on the project area after the cut off date South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 14

28 Provide additional targeted assistance (e.g., credit facilities, training, or job opportunities) and opportunities to improve or at least restore their incomeearning capacity, production levels, and standards of living to economically displaced persons whose livelihoods or income levels are adversely affected Provide transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income earning capacity, production levels, and standards of living. 2.4 Gap Analysis Some of FMO BANK requirements are not met by certain aspects of the Ugandan legislation and practice in the field of compensation. The following table summarises the main differences between Ugandan law provisions and FMO BANK requirements as per OD 4.30, as far as compensation is concerned, for various categories of Project Affected Persons. Table 2. Comparison of Ugandan law and FMO BANK/Equator Principles requirements regarding compensation Category of PAP Type of lost assets Ugandan Law FMO BANK/Equator Principles OWNERS Land Cash compensation based upon market value of unimproved land + disturbance allowance (15%) Requirements Strongly recommend landfor land compensation. Compensation is at replacement cost TENANTS Land Entitled to compensation based upon the amount of rights they hold upon land SHARECROPPERS Land Not entitled to compensation for land, entitled to compensation for crops OWNERS Non permanent Buildings OWNERS Permanent buildings Cash compensation based upon rates per sq.m. established at District level + disturbance allowance (15%) Rates are based on depreciated market value. Valuation by valuer + disturbance allowance Must be compensated whatever the legal recognition of their occupancy No specific provision as to land compensation, but income must be restored. Recommend in kind compensation or cash compensation at full replacement cost including labour and transaction costs Recommend in kind compensation or cash South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 15

29 (15%). Valuation is based on depreciated market value PERENNIAL CROPS Cash compensation based upon rates per sq.m./bush/tree/plant established at District level + disturbance allowance (15%) Rates are calculated as the one year net agricultural income Disturbance allowance is meant to take care of the establishment period for these crops with establishment more than one year. ANNUAL CROPS No compensation. The 6 month notice is supposed to allow people to harvest their annual crops BUSINESS INCOME No compensation. The 6 month notice is supposed to allow people to reestablish their business compensation at full replacement cost including labour and transaction costs Transition period should be taken into account. This period may be more than one year for some crops. No specific provision. Income restoration. Land for land compensation allows people to reestablish annual crops immediately. Establish access to similar opportunities In a number of cases, as shown by the table above, FMO BANK requirements are more favorable to PAP than the provisions of Ugandan law. SAEMS is committed to fulfill FMO BANK requirements. Appropriate compensation approaches are therefore needed, with a first part of compensation meeting Ugandan law requirements, and an additional uplift from Nyamwamba Hydropower Project where needed to comply with FMO BANK requirements, that is if these requirements are not met by the Ugandan provisions. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 16

30 3 SOCIAL ECONOMIC BASELINE 3.1 Introduction This chapter describes the results of the social economic issues as they were identified in the field. The social economic characteristics of the population provide basic demographic characteristics, health, education, incomes and occupation. These characteristics potentially provide base line information needed for planning the resettlement and compensation process correctly, efficiently and effectively. The most fundamental reason for commissioning this study was to develop a frame work to guide resettlement planners to identify and understand the project affected persons, the communities where they stay and to mitigate the negative effects of implementing the project, through fair compensation and relocation and implementation of income restoration mechanisms to sustain PAPs and community livelihoods. 3.2 Objectives of social economic studies The social economic study was aimed at establishing demographic data, status and standards of living of the affected persons. Another aspect was to identify the categories of the affected people, properties as well as their resettlement preferences. Most importantly, the study aimed to put in place a frame work for restoring the social economic and livelihoods of the project affected people and social economic characteristics of the PAPs. In addition, the social economic study was important for collecting information that is necessary to minimise the impacts of resettlement and for designing appropriate mechanisms of restoring the livelihoods of the PAPs by ensuring that, the resettlement process for the affected people does not put them in a worse off situation economically but rather into better situations than they were before the resettlement. In summary, the most important aim of undertaking the social economic survey was to collect information on land and physical assets of PAPs that would be used by the developer in informing better planning of the resettlement and compensation process. Therefore this base line study will help the project to: Identify PAPs and the assets lost Identify vulnerable groups in the project area. Assess the pre project socio economic conditions among PAPs. Establish alternatives to resettlement and compensation among PAPs Collect bench mark information from PAPs for purposes of monitoring their future livelihoods. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 17

31 3.3 General background Administrative sub divisions The proposed Nyamwamba Hydropower Infrastructure will be based in Kilembe Town Council, Bulemba Division, covering three Wards of Kyanjuki, Katiri and Namuhuga in the 5 villages of Musale B, Musale A, Kanyaruboga, Katiri and Namuhuga North East villages in Kasese district Table 3 below shows the administrative boundaries and villages where the proposed Nyamwamba Mini Hydropower project will be located. Table 3. Administrative Boundaries of the Project Area and number of house holds District Town Division Ward Village No. of PAPs council Kasese Kilembe Bulemba Kyanjuki Musale B 5 Musale A 31 Katiri Kanyaruboga 39 Namuhuga Katiri 6 Namuhuga 11 North East Total 92 As shown above all the land to be impacted belongs to Kilembe Mines Ltd a Government parastatal with 99% ownership. Kilembe mines subleased this land for 99 years from 1954 to 2050 with a hope of mining copper. However this dream came to a halt in late 1970s when the copper mining was stopped. The road network in Kilembe mines Estate Kilembe Mines Estate and Nature of buildings to be affected by the proposed Hydro power canal South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 18

32 3.3.2 Land use and settlement The settlement in these areas was previously meant for the staff working in the copper mines therefore it is mainly staff quarters. However with a halt in the copper mining some squatters also came in and settled with majority of them renting from Kilembe Mines Ltd. The main land use is estate settlement and subsistence agriculture. Crops grown include; sugar cane, cassava, Vanilla, pine, bananas, avocados, Arabica coffee, castor oil, yams and fruits like jack fruits, passion fruits, mangoes, guava, orange, pawpaw. Kilembe Mines Estate and its associated infrastructure General demographic information A total of 92 households are affected by the project and 60 of these were interviewed through the use of structured house hold questionnaires. Table 4 shows the basic socioeconomic characteristics of PAPs. The majority of the affected households who were interviewed (56.7 percent) are from Masule, followed by Kanyarubuga (16%), Katiri (11.7%), then Namhunga (3.3%) and only (1.7%) from Bulembia village. The demographic characteristic has 76.7 percent male and 23.3 percent female and of these, 80 percent are married, 11.7 percent are single while only 3.3 percent are widowed. With regard to tribes and ethnicity of the affected persons, the majority of the household heads (80 percent) are Bakonjo, 8.3 percent are Banyankole in equal South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 19

33 proportions as the Batooro while the least are the Bakiga and Baamba (1.7 percent) respectively. With regard to education, the majority of the respondents (30.4 percent) had completed secondary education; 28.6 percent had completed primary education, 19.6 percent can read and write local languages, 12.5 and 8.9 are illiterate and had completed university education respectively. Table 4. Distribution of PAPs by Selected Characteristics Socio demographic Characteristic Frequency (%) Sex (N=60) Male Female Marital status (N=60) Single Married Widowed Tribe (N=60) Mukiga Mukonjo Munyankole Mutooro Mwamba Education background (N=60) illiterate Can Read and white completed primary education completed secondary education completed university education Village (N=56) Bulembia Kanyurubuga Katiri Masule Namahunga The results presented in table 2 above do not reveal significant implications in terms of potential vulnerability of women since the number of widowed or separated women is small. However, it is an indicator of a certain volatility of married couples, which is more likely to be detrimental to the two widowed women, for whom chances are higher that they will never be able to remarry, whereas males are almost always able to remarry. This is certainly a factor that needs to be taken into consideration when devising South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 20

34 compensation measures. Experiences in other related hydropower compensation exercises have also shown that a significant number of men used their money to remarry young women, hence the importance of proposing compensation options especially for those that are likely to receive large compensation amounts (rather than cash compensation) Religious profiles of house hold heads The following table shows the religious profiles of house hold heads. Table 5. Religion of the respondents Frequency Percent Catholic Protestant Muslim Other Total Land tenure When asked under which regime they occupy the affected plots, 55% of the affected household heads reported that they are land owners. This is a sharp contrast with findings received from managers of Kilembe mines which indicated that nearly all the affected land in question legally belongs to the institution. It might again reflect a long time un settled dispute over land ownership resulting from the reported failure by Kilembe mines to fully compensate all the people whose land it acquired to implement its activities through a lease after entering into an agreement with the affected persons many years ago. Table 6. Tenancy by sex Tenancy Male Female Total Land Owner Freq percent Freq Percent Freq Percent % % % Tenant % % % Licensee 0.0% 1 1.7% 1 1.7% Co Owner 2 3.3% 1 1.7% 3 5.0% Total % % % South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 21

35 The results shown in the table above also indicate that, among the affected house hold heads, males usually enjoy better security of tenure than females: the proportion of female affected persons who do not own land is higher than males Livelihoods With in the project area, affected households earned a living form a wide range of occupations ranging from formal employments, business, and farming. However, along the stretches of the project, almost all households are engaged in subsistence farming. Farming entails growing food crops such as bananas, beans, cassava, sweet potatoes. In some house holds, multiple income activities were being undertaken where by, husbands were engaged either in formal employment such as teaching, providing health services and also working in various positions with in Kilembe mines and the sub county, while the wives commonly stayed at home working in the gardens and doing small scale trading. Being an enclosed area in a housing estate setting which is owned by Kilembe mines, livestock and poultry keeping were not significant economic activities practiced on a large scale in the affected project catchment area due to lack of space. A common worry among a significant number of PAPs was that, the land they are currently occupying as tenants used to be theirs in the past before it was acquired by Kilembe mines through a lease title. There is a fear that, at the time of compensation, the project developers might opt to compensate Kilembe mines for the land which they claim is theirs since Kilembe mines did not compensate all of them fully and adequately before it secured a lease title for the land in question. This fear was prevalent among a significant proportion of the PAPs and it was also highlighted by the political leaderships of the affected communities and of the Sub county and the District administrations Occupation Overall, 41.7% of the affected household heads declared them selves as peasant farmers and of these, 33.3% were males and only 8.3% were females. There are significant differences between occupations declared by males and females as shown bellow. Table 7. Occupation by sex Occupation Male Female Total Freq Percent Freq Percent Freq Percent Accountant 2 3.3% 0 0.0% 2 3.3% Businessman % 1 1.7% % Casual Labourer 1 1.7% 0 0.0% 1 1.7% Electrician 3 5.0% 0 0.0% 3 5.0% South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 22

36 Health worker 1 1.7% % Law Enforcement 2 3.3% % Miner 5 8.3% 0 0.0% 5 8.3% Peasant farmer Primary teacher % 6.7% % 5.0% % 11.7% Total % % % As can be seen in the results presented in the table above, the proposed hydropower project traverses considerable stretches of areas where the main source of livelihood is subsistence farming. The common crops grown include bananas, sugar canes, oranges, cassava, potatoes, and trees such as eucalyptus trees, jackfruits and papaws. A banana plantation strip that will be affected by the hydro power canal in Katiri village Agriculture The general landscape in Kilembe sub county in the vicinity of the proposed hydropower project comprises of sharp hills and slopes of the mighty Rwenzori Mountains from which rivers flow down stream and drain the water into several lakes located in the western lift valley. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 23

37 The upper reaches of the Rwenzori Mountains receive some of the highest rainfall in Equatorial Africa. However, there are no authentic rain gauges located in these upper Rwenzories. The two rain gauging stations are located at the Kasese Airport location and formerly at the Kilembe mines. However many projections are available for the catchment rainfall, based on catchment yields from the gauged river stations and short term measurements at the many forest camps etc., which have shown that the average annual rainfall is 2200 mm. Results from the socio economic survey revealed that subsistence agriculture is a very significant source of livelihood for the project affected house holds. Even among house hold heads that reported having other sources of incomes like trading and formal employment, it was also reported that, they also tend to be engaged in some form of subsistence farming to meet domestic food needs. The results generated from the socio economic survey revealed that the primary economic activity for majority (41.7%) of the project affected house holds is peasant farming as indicate in the table bellow. Table 8. Occupations of affected household heads by sex Occupation Male Female Total Freq Percent Freq Percent Freq Percent Accountant 2 3.3% 0 0.0% 2 3.3% Businessman % 1 1.7% % Casual Labourer 1 1.7% 0 0.0% 1 1.7% Electrician 3 5.0% 0 0.0% 3 5.0% Health worker 1 1.7% % Law Enforcement 2 3.3% % Miner 5 8.3% 0 0.0% 5 8.3% Peasant farmers % 5 8.3% % Primary teacher 4 6.7% 3 5.0% % Total % % % The results presented in the table above indicate that, although PAPs are currently engaged in a wide range of economic activities as their primary sources of incomes in their house holds, the most significant source of income and livelihood for majority of the house holds is peasant farming. It was also further revealed that, most of the PAPs use their agricultural products mainly for house hold consumption and they sell only a limited amount of crops to purchase clothes and consumer goods like salt, kerosene, cooking oil, etc. Therefore, given the significance of agricultural contribution to the livelihoods of the project affected persons, any loss of land holding has a very significant impact to their livelihoods. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 24

38 3.3.9 Crop production The results of the survey reveals that, agricultural land is used for cultivation of different crops such as food crops, cash crops, both food and cash crops and planting of trees. Among these, food crops are the most dominantly produced (48.3%), followed by cash crops. Table 9. Agricultural use of these agricultural plots Commodity Frequency Percent cash crops Coffee Eucalyptus trees Farming food and cash crops food crops Total Next to crop production, trading is also a major source of livelihood and income for the affected people in Kilembe mines. Trading takes a number of forms including shop keeping, selling of clothing in markets, local and bottled beverages in bars, food stuffs, charcoal and other house hold stuff. Most shops in the project affected area are small scale retail establishments only and sell house hold consumer goods although a number of other goods are also sold in the market. However, even with in the section of project affected persons who do trading as an alternative source of income, most of them still viewed agriculture as a significant source of income and livelihood Other sources of livelihoods Other mentioned sources of livelihoods among the project affected persons include incomes in form of salaries for those who are into formal employment such as teachers, health workers, miners, accountants and electricians. Salaried workers are many in the project affected area as a result of the developments which were initiated by Kilembe mines. Currently, there are a number of both primary and secondary schools in the area as well as health facilities and the Sub County headquarters. Most of the affected people who are currently employed by these institutions view salaries as their main source of livelihoods Households incomes Incomes of affected household heads were artificially high. As has already been highlighted, during the data collection process, it was observed that extensive speculation was taking place as an attempt by house hold heads to maximise compensation. Consequently, house hold heads attempted to inflate incomes they received from agricultural plots and from other sources. The incomes of the affected South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 25

39 house hold heads reveal a minimum of 250,000 UGX per month and a maximum of 31,000,000 UGX per month. However, survey findings indicate that, a significant proportion of the affected house holds shall loose income from their agricultural plots temporarily during the construction phase. Therefore, the agricultural income lost due to project construction activities has to be calculated and taken care of by the project developers. The survey findings have also revealed that a very insignificant number of the PAPs will loose significant size of their total land holdings permanently to the project Health and sanitation An attempt was made to establish the burden of disease in the project affected area where the survey was conducted. Although, empirical data was not provided, through direct face to face interviews with the PAPs, valuable information on the burden of disease was gathered. In all the affected house holds, the majority of diseases people suffer from are the communicable diseases. Rampant among them is malaria, lower respiratory track infections such as coughs and colds. Other mentioned diseases included typhoid, eye infections, allergy, diabetes and intestinal infections as indicated in the table bellow. Table 10. Most common diseases Diseases Frequency Percent Allergy Coughs & Colds Diabetes Eye infection Intestinal infection Malaria Pressure Typhoid Total N.B. This was a multiple response question. Knowledge and awareness about HIV/AIDS among the affected households is high. An overwhelming majority of the survey respondents (94.8%) reported to have ever heard about HIV/AIDS. This means that only 5.2% of the affected house hold heads are unaware about HIV/AIDS. Findings further show that almost all house hold heads talked to in the project affected areas irrespective of their age and occupation, indicated and demonstrated high level of awareness about the various methods that can be used to avoid contracting HV/AIDS South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 26

40 Table 11. Known ways of avoiding HIV/AIDS Transmission Frequency Percent Abstinence Avoid sharing sharp objects faithfulness and condom use zero grazing Total From the results presented in the table above, it is evident that awareness about different ways of controlling HIV transmission is high when respondents were able to correctly and accurately mention condom use as one of the most effective methods of controlling spread of HIV/AIDS Availability of health services Health services are provided and are evidently available with in the project affected areas. Survey findings indicate that Kilembe Mines Health centre provides health services to majority of the PAPs (98.3%) although a few small health facilities, mostly drug shops and dispensaries also exist. Kilembe mines health centre has the capacity to handle unique conditions such as HIV/AIDS, sexual and reproductive services including administering caesarean births. Data collected shows that 98.3% of the PAPs have access to Kilembe Mines health facility with in a walk able distance. However, a very significant number of the PAPs also reported lack of drugs in Kilembe mines health centre and high cost of accessing private health services as some of the main factors constraining access to health care services in the project area. A total of 4 PAPs reported having family members with physical disabilities which include asthma, liver failure and mental incapacitation as shown in the table bellow. Table 12. Number of people with disabilities/chronic illnesses Frequency Percent (%) Yes No Total Although the management of Kilembe Mines has for quite some time put in efforts to provide safer piped water for domestic use in the largest part of the affected project area, the river and unprotected running streams from the hills are still a major source of water for domestic use for a very significant proportion of the PAPs (37.9%). However, South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 27

41 the table bellow shows that majority of the PAPs (60.4%) have access to safer piped water with in walk able distances from their dwelling. Table 13. Water sources Frequency Percent (%) River/Stream Spring Tap Total Spectacular view of Nyamwamba river close to the proposed power house Fuel sources Biomass derived fuel is the most prevalent energy source in PAPs households as shown in table 14 below. Firewood is widely available in bushes and forests; hence its availability is not expected to be affected by the hydropower project. Table 14. Fuel commonly used in households Frequency Valid Percent Charcoal, firewood Paraffin/Kerosene Electricity Total South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 28

42 26.5% of the affected households have electricity at home. These are the residents located in Kilembe Mines. Electricity is mainly used for lighting. For cooking, most people either use charcoal in the Kilembe mines estate or firewood in the more rural areas South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 29

43 4 IMPACTS OF THE PROJECT 4.1 Introduction The project will affect a total length 3.25 kilometers. The project will utilize a small weir diverting water at Kyanjuki village to the left bank into a headrace canal. The canal will have a slope of 3:1000 for a length of 1.05 kilometers and penstock length of 2.2 kilometers delivering water to the powerhouse below Kilembe hospital. The powerhouse will be located 30 meters from the river where a tailrace will be constructed. 4.2 Impact on land The project construction and operation will require; Permanent land take as follows: Right of way: about 7.5 ha. As already mentioned above, this is land that will be permanently required and to which current land users will loose right of access Temporary land needs for construction purposes. 4.3 Impact on structures The proposed Nyamwamba Hydropower Project will take about 10 metres for the biggest part of the penstock (1.5KM) consisting of a 5m centre right of way (ROW). Within the right of way, all the affected residential houses and commercial structures will be compensated and removed when construction commences. These include both permanent and semi permanent structures. There are no business structures that are going to be affected by the project although some significantly big private eucalyptus plantations and other trees would be affected. In addition, there will be temporary need for land for the contractor s camps, access road and waste disposal. Owners and occupants of this land will be paid rent for the temporary use of their land. Where crops or structures are damaged, compensation will be paid Impact on residential structures There are 2 permanent residential structures located in the right of way, belonging to Kilembe Mines Ltd and 1 Semi permanent structure belonging to Mr. Masereka Joseph Impact on other structures. Other structures that will be affected include; 2 permanent shade structures, 1 permanent wall structure,3 semi permanent structures for chicken and ducks, 19 reed fences, 3 barbed wire fences, 4 DSTV stands and 2 metallic sign posts. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 30

44 Discussions held with the PAPs and through field observations, it was established that it would be possible for most people to rebuild affected structures a small distance behind the damaged buildings, out side the corridor. Evidently, this would reduce the adverse socio economic effects of resettlement. Additionally, disruption to business and temporary loss of income during relocation can be minimised or eliminated if owners are allowed to rebuild replacement structures before completely vacating the old ones and this should be possible during the regulatory 6 months notice to vacate period Impact on public and community institutions. Through interactions both in face to face interviews and discussions held with the affected people s representatives and community elders, it came out clearly that the proposed Nyamwamba Hydropower project will have no impact on social services facilities like public buildings, schools, health facilities, water supply and religious institutions (churches and mosques). Therefore, no compensation measures will be required. However, 14 electricity poles will have to be relocated. 4.4 Impact on people and livelihood Physically Displaced People Physically Displaced People are people whose residence has to be displaced because it is located within Project land acquisition area. It was established that 2 households will have to be physically displaced as a result of the project. This is because their current residence is located within the right of way. The rest of the project affected persons who are economically displaced people live in the densely settled areas with the Kilembe Mines estate. The following table shows the villages where the physically displaced households are located: Table 15. Villages where the Majority of Physically Displaced Households are Located Village Number of potential Physically Displaced Households Katiri (permanent) 01 Kanyaruboga (permanent) 01 Musale A (Semi permanent) 01 Total 03 There are 3 physically displaced households 2 belong to Kilembe Mines ltd and are located in Katiri and Kanyaruboga village while 1 which is semi permanent belongs to Mr. Masereka Joseph is located in Musale A village. It is anticipated that both of them will be able to relocate their residence to the remaining part of their plots. Other structures like fences, sign posts and DSTV will be relocated within the remaining parts of the plots thereby minimizing resettlement as much as possible. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 31

45 A house belonging to Kilembe Mines Ltd that will be affected by the Hydro power canal Economically Displaced People Economically Displaced People are defined here as people whose livelihoods are affected by the Project land acquisition to such an extent that even if they are not physically displaced they will have to move to regain similar economic opportunities. In an agricultural setting, this is usually the case because people are affected by the acquisition of a significant proportion of the land they farm that leaves the remainder unsustainable. In this project there are 83 people who will be economically displaced Total Number of Affected Households It is currently estimated, pending full completion of the data treatment, that about 92 households are affected by the Project land acquisition. This number includes 2 potentially physically displaced people and 89 potentially economically displaced people Temporary land requirements for construction During construction, some areas may have to be temporarily occupied by the contractor for construction purposes (approximately 2.5 acres). Owners and occupants will be compensated against the loss of their crops, if any, and will receive a rent from the South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 32

46 contractors for temporarily occupation. This means that there will be no transfer of rights in this case but damaged crops will be compensated if any. Nature of land to be affected by the hydro power canal in Namuhuga North East village Shrines and other cultural features The socio economic survey results did not reveal any impacts resulting from the proposed Nyamwamba Hydropower project on shrines, and other cultural features within the project area. However, two earth graves both found in Musale A village will be affected, one at Mr. Balyana John s compound and the other at Mr. Masereka s Home who is supposed to be relocated. It will be agreed with the owners of these graves on cultural requirements involved in relocating graves and this will be compensated for. in accordance with the local customary practice Other General Impacts The livelihoods of PAPs living in the right of way will be disrupted as they cannot continue using their land for cultivation for food crops production, construction or tree planting. An influx of people at the construction site will have the potential to raise the risks of HIV/AIDS incidences in the construction areas. South Asia Energy Management Systems VS Hydro (pvt) Ltd / CaCl Consulting Ltd 33