PAK: National Trade Corridor Highway Investment Program (NTCHIP)

Transcription

1 Resettlement Plan February 2014 PAK: National Trade Corridor Highway Investment Program (NTCHIP) Faisalabad Khanewal Motorway Project (M-4) Updated LARP of Interchanges of Section 1 comprising Faisalabad Gojra Section Prepared by National Highway Authority for the Asian Development Bank.

2 This 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. Your attention is directed to the terms of use section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3

4 Abbreviation Description AD Assistant Director ADB Asian Development Bank APs Affected Persons CoI Corridor of Impact CBO Community Based Organization DCR District Census Report DD Deputy Director DDO(R) Deputy District Officer (Revenue) EDO Executive District Officer EIA Environmental Impact Assessment EMP Environmental Management Plan Ft. Feet GM General Manager GoP Government of Pakistan IP s Indigenous People Km. Kilometers LAA Land Acquisition Act, 1894 LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan M-4 Faisalabad-Multan Motorway M&E Monitoring and Evaluation MFF Multi-Tranche Financial Facility NTC National Trade Corridor NGO Non-Governmental Organization NHA National Highway Authority PMU Project Management Unit RoW Right of Way RPF Resettlement Policy Framework R.ft. S.ft. Running Feet Square Feet SPS Safeguard Policy Statement 2009

5 TABLE OF CONTENTS LIST OF ABBREVIATION i EXECUTIVE SUMMARY 1 SECTION 1 PROJECT DESCRIPTION 1.1 Project Background Description of the Project Interchanges Need for LARP Land Acquisition and Resettlement (LAR) Conditions Alternative Analysis No Project Option Construction of Interchanges Design Alternatives considered minimizing LAR Impacts Exit/Entry Loops Carriageway with Land Acquired within Loops Status of Land Acquisition and Resettlement Activities 14 SECTION 2 SCOPE OF LAND ACQUISITION AND RESETTLEMENT 2.1 Objectives of Land Acquisition and Resettlement Plan Scope of LARP Cut-Off Date Scope of Land Acquisition Loss of Cropped Area Loss of Trees Loss of Structures Loss of Other Assets 23 SECTION 3 SOCIOECONOMIC INFORMATION AND PROFILE 3.1 Information/Data Collection Methodology Census of APs / and their Assets Socioeconomic Baseline Survey Demographic Profile of the Project Area Population of the Project Area Settlement Pattern and Family Life Conflicts Resolution Mechanism Commerce and Industry Socioeconomic Characteristics/Profile of the Project Corridor Land types and Land use Pattern in the Project Corridor Population Housing Characteristics Household Size Available Social Amenities in the Project Corridor Education Facilities Educational Status in the Project Area Health Facilities Socioeconomic Status of the AP s 30

6 3.6 Occupation and Income Analysis of AP s Vulnerable AP s Gender Issues and Analysis Educational Status of Women Access to Health Facilities Project Impacts on Women s Mobility and Access Power of Decision at Household Level 33 SECTION 4 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 4.0 General Identification of Stakeholders Public Consultation in the Project Area Findings of Group Discussion Disclosure of LARP 37 SECTION 5 GRIEVANCE REDRESS MECHANISMS 5.0 Grievance Redressal/Resolution Mechanism First Level of GRM Second Level of GRM Constitution and Function of the GRC 39 SECTION 6 LEGAL AND POLICY FRAMEWORK 6.1 General Legal Framework Pakistan s Law and Regulations on Land Acquisition and Resettlement ADB S Involuntary Resettlement Safeguards Comparison of Key LAA (1894) and ADB Policy Principles and Practices Remedial Measures to Bridge the Gap Compensation Eligibility and Entitlements Eligibility Assessment of Compensation Unit Values of Land at Replacement Cost Basis Assessment of Compensation Unit Rate for House Building/Structures Assessment of Compensation Unit Values of Crops Assessment of Compensation Unit Values of Trees Land Acquisition Process in Punjab under LAA Land Acquisition Process for Interchanges and Achievement of Main Milestones 49 SECTION 7 ENTITLEMENTS, ASSISTANCE AND BENEFITS 7.1 General Compensation Eligibility Compensation Entitlements Owners of Land Owners of Tube wells/shops Owners of Houses / Residential Structures Income Restoration and Rehabilitation Assistance for Loss of Employment Relocation Assistance for Rehabilitation Crop Losses to Affected Agricultural Land within the Row 53

7 7.3.7 Trees Assistance for Vulnerable People Entitlement Matrix 54 SECTION 8 RELOCATION, REHABILITATION AND INCOME RESTORATION 8.1 General Relocation of APS Rehabilitation of AFs/ APs AP s Income Restoration Livelihood Allowance Transitional Allowance Project- Related Employment 58 SECTION 9 RESETTLEMENT BUDGET AND FINANCING PLAN 9.0 General Components of the Cost Estimates Compensation Costs (CC) Land Acquisition Costs Cost of Affected Structures Tree Losses Crops Compensation Asset Losses Livelihood Allowance for the Affected Households Business/Transition Allowance House Rent Allowance Transportation/Shifting Allowance Electricity Allowance Vulnerable People Allowance Monitoring and Evaluation Administration Cost Contingencies Taxes LARP Implementation Budget Estimates 65 SECTION 10 INSTITUTIONAL ARRANGEMENTS 10.0 Background Land Acquisition & Resettlement Unit Organization of PMU/LARU Functions of LARU/PMU LARP Preparation Tasks/Terms of Reference Contractors Coordination Initiatives Conclusion 73 SECTION 11 IMPLEMENTATION SCHEDULE 11.1 Introduction 74

8 11.2 Schedules for LARP Implementation LARP Preparation Phase LARP implementation and Monitoring Phase LARP Implementation Schedule 75 SECTION 12 MONITORING AND REPORTING 12.1 Need for Monitoring and Reporting Internal Monitoring Monitoring by External Expert Reporting Requirements 80 LIST OF TABLES 1.1 Locations of Interchanges 2.1 Mouza-Wise Summary of Affected Land and Owners 2.2 Summary of Land Acquired 2.3 Details of the Land Owners and Lease Holders 2.4(a) Type of Land Acquired 2.4(b) Scale of Impacts on Privately Owned Land 2.5 Summary of Cropped Area 2.6(a) List of Non-Fruit Trees 2.6(b) List of Fruit Trees 2.7 Mouza-wise Summary of Affected Structures with Respect to total Covered Area, Affected Area and Extent of Impact 2.8 List of Affected Assets 2.9 Interchange-wise Summary of Multiple Impacts 3.1 Land Use Pattern in Village along the Project Corridor 3.2 Average Crop Yield in Project Area 3.3 Population of Project Corridor House Construction Type 3.5 Household Size 3.6 Social Amenities 3.7 Educational facilities in the Project Area 3.8 Educational Status 3.9 Professional and Income Analysis of the AP s Monthly Expenses 3.10 Educational Status of Women of the Project Area 3.11 Women Access to Health Facilities 3.12 Power of Decision Making at Household Level 4.1 Detail of Public Consultations (Section-1) Interchanges 5.1 Grievance Resolution Process 6.1 Salient Features of the LAA-1894 and Successive Amendments 6.2 Comparison of LAA and ADB s IR Policy 6.3 Mouza-wise Unit Rate of Land recommended by DPAC 6.4 Category Wise Rate (RS) per SFT (April 2012) 6.5 Unit Rates of Crops 6.6 Detail of Notifications, DPAC and Award for Interchanges Section Entitlement Matrix 8.1 Relocation Budget for the Affected Structures 9.1 Summary of Affected Land and Costs

9 9.2 Summary of Affected Structure Costs 9.3 Summary of Affected Non-Fruit and Fruit Trees 9.4 Summary of Crop Compensation for Affected Persons 9.5 Cost of Affected Assets 9.6 Summary of Vulnerability Allowance 9.7 Summery of Budget FIGURES 1.1 Alignment Layout Plan 11.1 LARP Implementation Schedule for Interchange 2 and LARP Implementation Schedule for Interchange 1 (Aminpur) ANNEXURE I List of Affected Fruit and Non Fruit trees II Identification of Affected Structures III V Mouza-wise List of Affected People with Details of Impacts VI Pre-Structured Questionnaire VII Office Order No 1(1)/NHA/EALS/2009/26 dated VIII Unit Rates of Land, Trees and Crops and Structures IX Compensation of Affected Structures X AFs Losing Livelihood Sources XI AP Wise List of Land Compensation XII Detailed Cost Estimation of the Trees on the Basis of their Girth Sizes and Fruit Trees XIII AP-wise List of Crop Compensation XVI Detailed Estimation of Affected Assets

10 GLOSSARY Terms Compensation. Cut-off date. Displaced persons. Economic displacement. Eminent domain. Entitlement. Expropriation. Highly complex and sensitive projects. Host communities. Income restoration. Kacha Meaningful consultation. Mouza Definitions Payment in cash or in kind for an asset or a resource that is acquired or affected by a project at the time the asset needs to be replaced. The completion date of the census of project-displaced persons is usually considered the cut-off date. A cut-off date is normally established by the borrower government procedures that establish the eligibility for receiving compensation and resettlement assistance by the project displaced persons. In the absence of such procedures, the borrower/client will establish a cut-off date for eligibility. In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihood) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Loss of land, assets, access to assets, income sources, or means of livelihood as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. The right of the state using its sovereign power to acquire land for public purposes. National law establishes which public agencies have the prerogative to exercise eminent domain. Resettlement entitlements with respect to a particular eligibility category are the sum total of compensation and other forms of assistance provided to displaced persons in the respective eligibility category. Process whereby a public authority, usually in return for compensation, requires a person, household, or community to relinquish rights to land that it occupies or otherwise use. Projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts. Communities receiving physically displaced persons of a project as resettlers. Re-establishing productive livelihood of the displaced persons to enable income generation equal to or, if possible, better than that earned by the displaced persons before the resettlement. A house is considered kacha, if both the walls and roof of the house are made of material that includes grass, leaves, mud, un-burnt brick or wood A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. A demarcated territorial unit for which separate revenue record including a cadastral map is maintained by the Revenue Department

11 Terms Physical displacement. Pacca Replacement Cost. Relocation assistance. Rehabilitation Replacement cost Squatters Vulnerable APs Definitions Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. A house is considered pacca, if both the walls and roof of the house are made of material that includes tiles, cement sheets, slates, corrugated iron, zinc or other metal sheets, bricks, lime and stone or RBC/RCC concrete Replacement cost involves replacing an asset at a cost prevailing at the time of its acquisition. This includes fair market value, transaction costs, interest accrued, transitional and restoration costs, and any other applicable payments, if any. Depreciation of assets and structures should not be taken into account for replacement cost. Where there are no active market conditions, replacement cost is equivalent to delivered cost of all building materials, labor cost for construction, and any transaction or relocation costs. Support provided to persons who are physically displaced by a project. Relocation assistance may include transportation, food, shelter, and social services that are provided to the displaced persons during their relocation. It may also include cash allowances that compensate displaced persons 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. Assistance provided to affected persons to supplement their income losses in order to improve, or at least achieve full restoration of, their pre-project living standards and quality of life Amount needed to replace an asset at prevailing market prices People without legal title to land and/or structures occupied or used by them. ADB s policy explicitly states that such people cannot be denied compensation based on the lack of title Distinct groups of people who might suffer disproportionately from resettlement effects. They are the households below poverty line or will become below poverty line as result of loss to assets and/or livelihoods, female headed households, or disabled persons

12 EXECUTIVE SUMMARY A. Project Background 1. This Updated Land Acquisition and Resettlement Plan (LARP) relates to a land acquisition process that has already largely been completed. The LARP is now updated to ensure full consistency with ADB s Safeguard Policy, particularly in relation to the provision of full replacement cost. 2. Government of Pakistan has given major emphasis to the building of new Motorways and improvement of existing roads to dual carriageways. Faisalabad to Khanewal Motorway (M-4) is a step in this direction under the overall National Trade Corridor Highway Investment Program (NTCHIP). The Asian Development Bank (ADB) has provided funding to the Government of Pakistan (GOP) for implementation of the project through a Multi-tranche Tranche Financing Facility (MFF). The loan for M4 project (Ln # 2400), section 1 was approved in The Section 1 of M4 comprises (i) a carriageway of 58 km section from Faisalabad to Gorja districts, and 4 interchanges within the carriageway. The MFF s land acquisition and resettlement framework (LARF) was approved in Keeping in view the approved LARF, Pakistan s Land Acquisition Acts of 1894 (LAA), and the requirements of ADB s, Involuntary Resettlement Policy of 1995, the LARP for section 1 was to be prepared in two parts; 1 st part covering the carriageway and second covering the 4 Interchanges, only. LARP of carriageway was prepared/ approved in 2009, which is now at an advanced stage of implementation. B. Preparation of LARP 3. The National Highway Authority (NHA) is the project execution agency (EA), and following NHA s full endorsement of section 1 LARP, construction of carriageway; four lanes dual carriageway with New Jersey Barrier as median with land (110 m wide right of way (ROW) already acquired is under progress, while LARP implementation is also nearing completion. 4. This document presents the LARP of Interchanges which has been prepared by NHA based on the final implementation-ready design of the interchanges. The LARP covers all the 4 interchanges, namely Aminpur Interchange, village 59 JB located at Faisalabad Aminpur road, (ii) Chiraghabad interchange, villages 303 JB & 336 JB, located at Faisalabd-Jhang road, (iii) Sir Mehdi Shah interchange, village 303 JB, located at Gojra-Jhang road, and iv) Kamalpur interchange at Faisalabad Chiniot road. Land for Kamalpur interchange (interchange # 4) was acquired by NHA several years ago for M3 project, outside ADB s financing of M4 project. The Kamalpur land is fully in NHA s possession, unencumbered (as confirmed by ADB s DDR). The due diligence review of social safeguards for Kamalpur interchange confirms that there are no LAR issues whatsoever outstanding. This LARP therefore covers 3 interchanges; (i) Aminpur interchange, (ii) Chiraghabad interchange, and (iii) Sir Mehdi Shah interchange for which land has been recently acquired. Delay in preparation of LARP was due to the delay in finalization of the design of interchanges. NHA now has the implementation-ready designs available for all 3 interchanges, based on which the LARP has been prepared by NHA with endorsement of its full implementation. The LARP is fully in conformation with ADB s IR Policy of 1995, LAA and the LARF. Where required, NHA may follow section-by-section implementation/construction approach, as the interchanges are located at different places away from each other, and may have different readiness level in terms of land acquisition and payment of compensation to the APs. Nevertheless, section by section approach would be applied strictly in accordance with LAR conditions of MFF as mentioned in approved framework. 1

13 5. Construction of these interchanges is covered under the loan agreement for Tranche-1 project as integral component of M-4 Section This LARP has been prepared for the component of Interchanges under Section 1 of M4. Of the total 4 interchanges, this LARP covers 3 interchanges. The 4 th interchange does not involve land acquisition and or any resettlement issues. For compensation of lost assets the unit rates used in this LARP for all the three interchanges are approved by the Punjab Board of Revenue based on the market rate derived from registered land transactions plus 15% compulsory acquisition surcharge. Livelihood restoration allowance of 10%will also be paid to the affected persons (APs) to comply with ADB s requirement of replacement cost as mentioned in ADB s IR Policy and agreed in the land acquisition and resettlement framework, FAM and Loan Agreement. 7. This LARP has been prepared by the National Highway Authority based on 100% census of losses of Displaced Persons (APs) of interchange including land, structures, trees and assets; A socio-economic survey of 25% APs was also carried out that included several rounds of meaningful consultations with APs, including meetings, interviews, and focus group discussions (FGDs). The primary objective of the LARP is to provide necessary details for compensation, resettlement and rehabilitation for the APs of interchanges by identifying (i) the extent of losses; (ii) the policy framework for compensation payments, income restoration, relocation and rehabilitation; (iii) mechanisms for timely disclosure of information to the APs and other stakeholders (iv) institutional framework for participation and implementation; (v) grievance redress mechanism (GRM) and (vi) responsibilities for monitoring the implementation process (vii) resettlement budget and implementation schedule. 8. The Project impact survey reveals that acres of privately owned cultivated agricultural land will be affected due to construction of all three interchanges. While the number of affected houses and business structures is 05respectively requiring relocation. Table 1: Interchange-wise Summary of Multiple Impacts Village Interchange Landowner Leaser Land & Structure Land &Tree Leaser & Tree Land & Tree & Structure Trees Structures Total 59 JB Interchange-1 (Aminpur) JB Interchange (Chiraghabad) 336 JB JB Interchange-3 (Sir Mehdi Shah) Total *155 * Total number of AFs is 155 and they need to be compensated for land and other affected assets including allowances under ADB s IR policy. The number 155 includes the 04 units of state owned land. 9. The total number of Affected Families (AFs) comes to 155 with 900 APs. This includes owners of land, structures, trees and those having leases on government land. In addition to these impacts, the project will affect 329 timber trees and 89 fruit trees with crops cultivated on the affected agricultural land. 2

14 10. The census survey of the AFs commenced on 13 March 2011 and completed on 25 March The publication of notification of Section-4 date was established as cut-off date under the project to determine the eligibility for compensation. Any person moving into the RoW after cut-off date (i.e. December 01, 2010 for interchanges ii & iii and 15 September 2012 for interchange-i) is not eligible for project entitlements and compensation. However, such persons will be given prior notice for removal of any structure/asset, built after cut-off date, from ROW, and will be allowed to salvage the salvageable material. An entitlement matrix has been prepared to ensure that all losses (land and non-land) of are fully compensated at full replacement costs. During LARP preparation community participation is ensured through a structured consultative process and disclosure of LARP provisions has been carried out. 11. The eligibility and compensation entitlements were determined based on the assets lost by the AFs falling in the interchanges. The assets lost are required to be compensated at full replacement cost. C. Rate of Compensation 12. Land Acquisition Act (LAA) and Board of Revenue (BOR) Methodology: The BOR uses Pakistan s LAA 1894 for acquiring land and fixing compensation at market rate for land. Under LAA/BOR methodology, market rate is derived from the registered land transactions-a year before the date announcement of section 4 of LAA, Additionally total of 15% compulsory acquisition surcharge or solatium is also paid over and above the transaction based market rate. 13. Replacement Cost (RC) Methodology: The ADB IR policy requires compensation at full replacement cost that includes fair market value plus, transaction costs, interest accrued, transitional and restoration costs, and other applicable payments without depreciation of structures and assets. The policy also requires qualified and experienced experts to undertake valuation of land and assets. 14. The tables (A and B) below provide a comparison of the two valuation methodologies; BOR/LAA vs. RC; identify discrepancies in valuation basis/factors and price differential to be paid as additional or supplementary compensation. Table A: National Methodology LAA/BOR Methodology LAA/BOR Methodology Factors considered in valuation Remarks LAA/BOR Methodology to determine (fair/average) market value of land a. Average sum of registered land prices recorded in the year before announcement of section 4, i.e b. Compulsory acquisition surcharge or a solatium of 15% over and above land compensation Table B: Replacement Cost Methodology a. Compensation is only for affected assets. b. Factors like transitional and restoration costs, and income restoration and rehabilitation aspects not considered in the law RC Methodology Factors considered in valuation Remarks Rate of compensation be calculated at full replacement costs. a. Fair market value, b. Transaction costs, c. Interest accrued, d. Transitional and restoration costs, and e. Other applicable payments, e.g. allowances to support livelihood restoration and vulnerability aspects of the poor APs. a. Fair market value, costs of land transactions and rehabilitation and resettlement aspects considered including the allowances to achieve RC. 3

15 15. Payment of Compensation at Full Replacement Cost: The compensation fixed by Punjab BOR for all the 3 interchanges is Rs million. The independent valuation study carried out by Colliers International concludes the need for payment of Rs to the APs as additional allowance to meet the price differential between BOR price and RC, and comply with ADB s requirement of RC. The BOR compensation together with price differential of Rs million and other allowances as mentioned in the entitlement matrix (table 2) below will be paid to all eligible APs to comply with LAA and ADB s IR Policy. Appendix 1 provides due diligence review of land acquisition for interchanges and colliers valuation study and provides a corrective action plan (CAP) for implementation of LARP and payments of compensation including price differential to be paid as additional payment to comply with replacement cost. 16. Compensation entitlement matrix below prepared in accordance with LAA, approved LARF and ADB s IR Policy provides compensation entitlements for all types of losses: Type of Loss Agricultural land, including cultivable land and uncultivable wasteland Residential/ commercial land Residential and commercial structures Table 2: Compensation Entitlement Matrix Application All land losses irrespective of impact severity Definition of AFs/APs Owner (Legal/legalizable) Tenants/sharecropper Owner (legal/legalizable) Owner of the Structure Compensation Entitlements In addition to the market rate calculated under LAA/BOR market rate + 15% compulsory acquisition surcharge, cash compensation at full replacement cost (RC 1 ) including fair market value plus all transaction costs, applicable fees and taxes and any other payment applicable If BoR 2 compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation. A price differential of Rs million (@ 10% of BOR cost of affected land) will be paid to all eligible AP. Cash compensation equal to market value of lost harvest to be shared with landowner based on the sharecropping contract. In addition to the market rate calculated under LAA/BOR market rate + 15% compulsory acquisition surcharge, cash compensation at full replacement cost (RC) 3 including fair market value plus all transaction costs, applicable fees and taxes and any other payment applicable If BoR compensation falls below RC, the project will pay the difference as resettlement assistance or supplementary compensation to support to affected livelihoods A price differential of Rs million (@ 10% of BOR cost of affected land) will be paid to all eligible AP. Cash compensation at full replacement cost for affected structures and other fixed assets, free of salvageable materials, depreciation and transaction cost and also 1 Refer to IR safeguards as in SR2 para 10 of SPS Board of Revenue, provincial agency with a mandate to approve compensation rate/amount. 3 Refer to IR safeguards as in SR2 para 10 of SPS

16 Type of Loss Cattle yards or farm deras. Transitional Allowance Application Businesses Definition of AFs/APs AFs facing permanent or temporary business loss. Compensation Entitlements transportation cost. Fees and taxes (if applicable) will be waived. Rental assistance for a period of six months for residential structure owners. Rs.40,000/= for getting electricity connection at new premises. Cash compensation at full replacement cost for affected structures and other fixed assets, free of salvageable materials, depreciation and transaction cost. Fees and taxes (if applicable) will be waived. Cash compensation during the interruption period 06 months for shop loss and 03 months for temporary tube well loss, as per income of the AF, supported by tax payments records or in the absence of such documents, equal to inflation adjusted OPL (1, X 7.2 X 3= 42,000) as transitional allowance in case of shops and tube wells. Crops Affected crops Cultivator of crop Crop compensation in cash at the current market rate for one year s agricultural income (both Rabi and Kharif harvests). Trees All affected trees Owners Fruit trees:.fruit trees are compensated based on age category (a. 1 2 year; b. 2 5; c years & d. Over 12+). Compensation is assessed by Ayub Research Institute, Forest and Horticultural Departments. Timber trees: trees grown and/or used for timber. The compensation is to reflect the market value of tree s wood content, based on the girth of trunk at current market rates as provided by the Forest Department. Transportation/ Relocation Assistance Vulnerable DP livelihood support APs Unidentified Losses Unanticipated Impacts APs to be relocated- Owners of residential and commercial/ business structures All APs/ APs below the OPL. All APs One time paid in lump sum, an amount of Rs.15000/- in case of household structures, and Rs in case of tube wells shop as transport allowance to shift the materials of affected structures. Additional Cash allowance equivalent to 03 months of inflation adjusted OPL. Priority in project related employment, ensured through bidding document. Dealt with as appropriate during sub-project implementation according to the ADB Policy and updated LARF of NTCHIP. 17. For LARP preparation, implementation and monitoring a land acquisition and resettlement unit (LARU)has been set up at project office in Faisalabad, which is comprised of Director and Deputy Director Land and Social, Land Acquisition Collector and Resettlement Specialist and social organizers and other LAR staff under supervision consultants. LARU at this level will report to the General Manager/Project Director M4. At PMU level in NHA headquarter in Islamabad General Manager Environment, Afforestation, Land and Social (EALS). LARU is responsible for LARP implementation and internal monitoring. 18. Affected Persons Committee and Grievance Redress Committees are constituted to liaise with AFs, facilitate information disclosure and speedy redress of grievances at local and project levels. A grievance redress system is also provided in the LARP and put in place to 5

17 resolve all resettlement related issues. Land Acquisition issues will be dealt with under the provision of LAA 1894 and ADB s Guidelines pertaining to project based grievance redress mechanisms. Internal monitoring and reporting of LARP will also be carried out by Supervision Consultants Resettlement Specialist while services of an External Monitor will be hired for external monitoring and reporting of LARP. 19. The final cost of land acquisition and resettlement impacts, LARP implementation and monitoring comes to be Rs.64.77million. The allocated budget for the compensation of lost land of the affected landowners at replacement cost is Rs million (Rs million as the LAA/BOR compensation and Rs million as RC to be paid as supplementary/additional compensation/assistance over and above the LAA/BOR compensation). The compensation rates for other assets including structures, trees and crops are provided by the respective government departments as replacement value to the lost assets. Details of final costs of LARP are as under: Sr. # A Description Table 3: Summary of LAR Costs and Budget Quantity/Total Number Unit Unit/Rate Land Acquisition Cost / Compensation Calculated under Law (CCL) Total Cost (Rs.) (Rs.) Rs. (Million) US $ (Million) 1 Aminpur Interchange 9.6 Acre Various 16,620, Chiraghabad Interchange Acre Various 11,105, Sir Mehdi Shah Interchange Acre Various 18,160, Total ,886, Structures Aminpur Interchange 3 No. Various 884, Chiraghabad Interchange 1 No. Various 86, Sir Mehdi Shah Interchange 1 No. Various 170, Total 1,140, Trees Aminpur Interchange 64 No. Various 189, Chiraghabad Interchange 105 No. Various 191, Sir Mehdi Shah Interchange 249 No. Various 880, Total 1,261, Crops Aminpur Interchange 9 Acre Various 579, Chiraghabad Interchange Acre Various 1,180, Sir Mehdi Shah Interchange 29 Acre Various 2,023, Total ,784, Assets Aminpur Interchange 1 No. Various 7, Sir Mehdi Shah Interchange 2 No. Various 88, Total 3 96,

18 Sr. # B Allowances Description 6 Livelihood Allowance Quantity/Total Number Unit Sir Mehdi Shah Interchange 1 No. Unit/Rate Total Cost (Rs.) (Rs.) Rs. (Million) US $ (Million) Sub Total(A) 52,169, ,000 for 3 months 42, Total 1 42, Business/Transition Allowance Aminpur Interchange 1 No. Sir Mehdi Shah Interchange 1 No. 14,000 for 6 months 14,000 for 3 months 84, , Total 2 126, House Rent Allowance Sir Mehdi Shah Interchange 1 No. 7,000 for 6 months 42, Total 42, Transportation/shifting Allowance Aminpur Interchange 1 Various 10,000 10, Sir Mehdi Shah Interchange 2 Various 25,000 25, Total 35, Electricity Allowance Aminpur Interchange 1 Rs. 40,000 40, Sir Mehdi Shah Interchange 1 Rs. 40,000 40, Total 80, Vulnerable Allowance 12 Aminpur Interchange 06 No. Chiraghabad Interchange 3 No. Sir Mehdi Shah Interchange 1 No. 14,000 for 3 months 14,000 for 3 months 14,000 for 3 months 252, , , Total 420, Additional compensation-gap between compensation and ADB s Replacement Cost (RC), as assessed by independent appraiser 2,926, Sub Total (B) 3,671, Sub Total (A+B) 55,841, C Monitoring and 5% of the Total Cost 2,792, D Administrative 1% of the Total Cost 558,

19 Sr. # Description Quantity/Total Number Unit Unit/Rate Total Cost (Rs.) (Rs.) Rs. (Million) US $ (Million) E 10% of the Total Cost 5,584, Grand Total(A+B+C+D+E) 64,775, Status of LAR and Project Implementation: The LARP implementation is underway and about 86% compensation (for land and non-land assets) has been disbursed to 114 APs of the total 155. The payment of resettlement/rehabilitation allowances (as per entitlement matrix of LARP) including the additional payment of price differential will commence after the LARP is approved by ADB. Earlier as agreed, an independent land valuation study was also conducted by an international valuation firm; Colliers International. The study worked out a price differential of Rs million by Colliers to meet the requirement of ADB s replacement cost. This amount will paid to all applicable APs (122 APs) under the corrective action plan (CAP), annexed with the LARP. NHA will provide monthly internal monitoring reports and quarterly external monitoring reports (as mutually between ADB and NHA) to ADB covering the LARP implementation, disbursement of compensation as per entitlement matrix and CAP. External monitoring reports by external monitoring agency or individual consultant will validate the payments and implementation of LARP and CAP. The construction work will be conditional to full LARP implementation. These activities will be monitored both internally and externally on quarterly basis. Table 1.2 below provides Interchange-wise details about the awarded amount and the amount paid thus far. Table 1.2: Interchange-wise Summary of Awarded Amount and Amount Paid Sr. No. Interchange Awarded Amount (PKR) Amount Disbursed (PKR) % Achieved Date of Award 1 Aminpur 1, ,610,159 81% Chiraghabad 12,324,394 10,081,170 82% 3 Sir Mehdi Shah 18,871,769 17,406,757 92% Total %

20 SECTION 1 PROJECT DESCRIPTION 1.1 Project Background 1. The updated Land Acquisition and Resettlement Plan (LARP) relates to a land acquisition process that has already largely been completed. The LARP is now updated to ensure full consistency with ADB s Safeguard Policy, particularly in relation to the provision of full replacement cost. 2. The project includes the construction of three interchanges at different RDs which are listed below: Aminpur Interchange (11+804) Chiraghabad Interchange (34+577) Gojra Interchange (58+069) 3. As a part of National Trade Corridor Highway Investment Program (NTCHIP), M-4 (Section-1) Tranche-1 project is being constructed with the assistance of Asian Development Bank (ADB) funds for Road Sector Development. M-4 Section-1 starts from Faisalabad, at the end point of Faisalabad Pindi Bhattian Motorway (M-3) and terminates at Gojra Jhang Road. It is a part of motorways program. With the construction of this facility; the motorway network will be extended to southern Punjab. This motorway will link major cities of the country like Peshawar, Islamabad, Lahore and Faisalabad with Multan and southern areas. This will play a vital role in the economy of the country by fuel efficiency, reducing travelling time and operating costs. In compliance to ADB s safeguard requirements, land acquisition and resettlement plan was to be prepared in two parts (first part for Linear component and second part for Interchanges) following provisions of Resettlement Framework (approved in 2007 for the whole MFF). LARP for the carriageway (part one: linear component)of M-4 (Section-1) was prepared by NHA in accordance with ADB Safeguard requirements as illustrated in, LARF and national laws applicable to the project including LAA-1894, which was approved by ADB in 2009 and has been implemented to the satisfaction of ADB. However, due to unavailability of design of the interchanges neither land acquisition was initiated under LAA 1894, nor LARP for these interchanges (part two: interchanges component) was prepared and submitted to ADB. Now the location and design of interchanges are finalized hence, this LARP for interchanges of M-4 Section-1 (Faisalabad Gojra Section) is finalized following LARF provisions to comply ADB s safeguard requirements under loan covenants. 1.2 Description of the Project 4. The M4 Section-1 component of Motorway Project includes construction of four lanes dual carriageway from Faisalabad to Gojra and construction of four Interchanges at different local road crossings (provincial highways). About 1441 acres of land has been acquired for ROW of the carriageway of M4 Section-1 excluding four interchanges i.e., one at Kamalpur (starting point of M4 Section-1 at Faisalabad Chiniot road) and remaining three at i) Aminpur (Faisalabad Aminpur road), ii) Chiraghabad (Faisalabad Jhang road), and iii) Sir Mehdi Shah (Gojra Jhang road). The paved width of exit and entry loops for all four interchanges on both sides of the carriage way is 7.3 m with inner and outer shoulder 1 meter and 3 m respectively. The motorway as well as interchange s loops will be fenced from both sides to restrict entry of animals (domesticated and wild) on to the carriageway to ensure safe and steady derive. A 5-m 9

21 service road/ pedestrian track will be provided on both sides of the Interchanges loops to facilitate peasants of area to go to their fields to continue cultivation without any interruption. Land will be acquired for construction of carriage way for interchanges loops connecting provincial highways passing across M4- Section Interchanges 5. Section-1 of the motorway has four (04) interchanges namely i) Aminpur interchange at Faisalabad Aminpur road, ii) Chiraghabad interchange at Faisalabad-Jhang road, iii) Sir Mehdi Shah interchange at Gojra-Jhang road and iv) Kamalpur interchange at Faisalabad Chiniot road,. Among these interchanges, the land for Kamalpur Interchange was acquired under M-3 project which is under NHA s possession and involves no LAR issues. However, privately owned agricultural land will be acquired for remaining three interchanges at serial i) to iii) so this LARP deals with 3 interchange only excluding Kamalpur Interchange. The location of interchanges involving LAR is given as under. Table 1.1: Locations of Interchanges Sr. No. Chainage/RD Interchange Name Location Aminpur interchange Faisalabad Aminpur Road Chiraghabad interchange Faisalabad Jhang Road Sir Mehdi Shah interchange Gojra Jhang Road 10

22 Figure 1.1: Map showing Alignment Layout Plan of Section-1 and Acquisition of Land for all the three Interchanges with their Locations 11

23 1.3 Need for LARP 6. The involuntary resettlement of AFs due to project actions may cause severe long term socioeconomic hardships, impoverishment and environmental damages unless appropriate measures are carefully planned and carried out. The ADB Policy on involuntary Resettlement requires that i) involuntary resettlement should be avoided where feasible, ii) minimized by exploring all viable alternative project/design options and if it becomes unavoidable, then the affected persons (APs) should be fully compensated for their lost assets and earnings to ensure that their living standards should be restored at pre-project level if not improved. This Policy endorses the eligibility of all the categories of persons, whether with formal legal rights or without these rights in a project, but occupying project area prior to the cut off date. 7. This LARP has been prepared by the National Highway Authority based on 100% census of losses of Displaced Persons (APs) in terms of land, structures, trees and assets; socioeconomic survey of APs covering the project area and on-going consultations through meetings, interviews, focus group discussions with the APs and other stakeholders, in accordance with provisions of LARF and the ADBs Involuntary Resettlement Policy guidelines. 8. The primary objective of the LARP is to provide necessary details for compensation, resettlement and rehabilitation by identifying (i) the extent of losses; (ii) the policy framework for compensation payments, income restoration, relocation and rehabilitation; (iii) mechanisms for timely disclosure of information to the APs and other stakeholders (iv) institutional framework for participation and implementation; (v) grievance redress mechanism and (vi) responsibilities for monitoring the implementation process (vii) resettlement budget and staggered implementation schedule for all three interchanges to ensure timely implementation of LARP provisions and handing over of land to contractor as scheduled. 1.4 Land Acquisition and Resettlement (LAR) Conditions 9. The civil works contract is already awarded for the project and the contractor is carrying out construction activities on carriage way (linear component). However, mobilization and handing over of sites for interchanges are conditional upon the preparation (reflecting final impacts, APs lists and final compensation rates of land, structures, trees and crops approved by the relevant departments) and full implementation of interchanges LARP (following staggered implementation schedule) acceptable to ADB in accordance with the LARF and ADB s Involuntary Resettlement Policy requirements. 1.5 Alternative Analysis 10. The basic purpose of construction of M-4 Interchanges is to provide an efficient road link to the people of the adjoining areas and a controlled exist and entry from crossing provincial highways and major cities/ urban centres like Chiniot, Aminpur, Painsera and Gojra which are in close vicinity of M-4 (Section-1). During planning and designing different alternatives, were considered for fostering and sharing benefits of development activity without comprising the safeguard requirements. The alternatives considered are discussed as blow No Project Option 11. Without the construction of interchanges there will be no connectivity between the major cities and the commuters around Section - I of the Motorway resulting in the access problem to 12

24 the major cities such as Pindi Bhattian,Gojra etc. With no access to the adjoining cities and busy provincial highways crossing M 4- Secion-1, the fast and effective intera-city trade will be affected depriving the population of adjoining cities to foster benefits of this trade link and thus objectives of project will be compromised.. Without construction of interchanges, the existing road from Faisalabad Gojra will be the only available link road for surrounding cities and will continue to be the main mean of transportation in the area. With the passage of time, increased traffic jams at busy locations will result in waste of time and money as well as deterioration of poorly managed provincial road network. Moreover, according to the traffic surveys an 7.5 per cent per year is reported and up to year 2010 traffic count is grown by vehicles per day in project corridor. The existing roads are insufficient to cater this traffic volume and therefore, without construction of the project as per design, future traffic needs cannot be met. Though construction of M 4 Section-1 without interchanges will have zero LAR impacts however, it will result in further worsening the present socio-economic environment of the area and increased disturbance to residents of area and the road users. Being drastic to project objectives this option is not viable Construction of Interchanges 12. This option involves construction of interchanges Faisalabad- Khanewal Motorway at three different locations i.e. Aminpur, Chiraghabad and Gojra to cater needs for exist and entry of traffic through Faisalabad Aminpur Road, Faisalabad Jhang Road, and Gojra Jhang Road (provincial highways) respectively, to facilitate the adjoining community and users of these provincial highways to foster project benefits. As the land was not acquired in first instance along with acquisition of ROW land for project alignment so, constructions of these interchanges involve land acquisition and resettlement. During planning these interchanges are sited nearby urban centres at points where provincial highways cross M 4 to facilitate the population of adjoining areas. However, to avoid/minimize Resettlement issues the interchanges are provided at a fair distance from cities and rural settlements in agricultural lands. Construction of these interchanges will results in the following overarching advantages: Provide connectivity between the major cities/settlements in the project corridor; Ease in access to Motorway (M-4) resulting in utilization of better and safe mode of transportation by the locals of the project area; Easy access to the markets for agricultural inputs; with improved and efficient intra city trade; Design Alternatives considered minimizing LAR Impacts 13. Siting and design of developmental actions determines the level and severity of resettlement impacts. So these components were also focused to minimize the resettlement impacts without compromising the benefits to be accrued and safety of road users as well as nearby population. Keeping in view these objectives following design alternatives are considered. (A) Exit/Entry Loops without acquiring land within loops 14. Four Lane exit entry carriage way loops (7.4 meter paved carriage way with 3 meter inner and outer shoulders) without acquiring the land within loops was studied. This design option considerably minimizes the land acquisition and subsequent resettlement impacts. Resettlement impacts of this design option were further minimized by sitting of loops in 13

25 agricultural lands by avoiding the commercial and residential structures to the possible extent. To meet the objective for minimizing the resettlement impacts even one loop of interchange-i was redesigned on the opposite side of originally designed loop with limited impacts on commercial land and structures. The total land required for ROW of exit entry loops for all three interchanges is only acres with limited impact on -172 AFs as they will lose small parcels of their lands falling under Loops ROW width only. This option will ensure that the impacts are minimized in terms of loss and significance with sufficient land remain with AFs to carry on their agricultural activities and may also improve worth and potential of the privately owned landed property within loops as AFs may put it under other productive uses. However, its demerits include compromised road network safety if proper regulatory measures like access passages for peasants to cultivate and use their land are not adopted Exit/Entry Loops Carriageway with Land Acquired within Loops 15. Construction of Four Lane exit entry carriageway with acquired land within loops will require 134 acres of privately owned agricultural land owned by 196 Affected Families for all three interchanges. Although this option may have some positive effects on traffic safety near interchanges however, it will increase resettlement impact not only in terms of land and number of Affected Families but in terms of significance also. In addition to land loss, 29 residential and commercial structures owned by 29 AFs (16 residential, 13 shops and a brick kiln) were falling under impact. Besides the land acquired within loops will be in access and of no use for NHA in future. So, considering all these factors this option was dropped due to its resettlement impacts. 16. Keeping all alternatives in view the design option at serial 1.5.3(A) is adopted due to less resettlement impacts. The proper measures including pipe culverts and access passages are provided in design for the peasants to make use of their land without interrupting the traffic flows on the interchanges carriage way loops to ensure improved road network and community safety. The AFs have been identified as per final design, impacts are assessed, assets evaluated and compensation provisions are proposed in subsequent sections of the LARP in strict compliance to agreed LARF for the project. In addition to above while designing these interchanges special focus was to avoid the population and resettlement. For this purpose interchanges are designed in areas outside the cities with limited human activity. 1.6 Status of Land Acquisition and Resettlement Activities 17. The LARP implementation is underway and about 86% compensation (covering land and non-land assets) has been disbursed to 114 APs of the total 155. The payment of resettlement/rehabilitation allowances (as per entitlement matrix of LARP) including the additional payment of price differential will commence after the LARP is approved by ADB. Earlier as agreed, an independent land valuation study was also conducted by an international valuation firm; Colliers International. The study worked out a price differential of Rs million by Colliers to meet the requirement of ADB s replacement cost. This amount will paid to all applicable APs (122 APs) under the corrective action plan (CAP), annexed with the LARP. NHA will provide monthly/quarterly internal monitoring reports (as mutually agreed with ADB) to ADB covering the disbursement of compensation as per entitlement matrix and CAP. External monitoring reports by external monitoring agency or individual consultant will validate the payments and implementation of LARP. The construction work will be conditional to full LARP implementation. These activities will be monitored both internally and externally on quarterly basis. Table 1.2 below provides Interchange-wise details about the awarded amount and the amount paid thus far. 14