The Federal Democratic Republic of Ethiopia MINISTRY OF WORKS AND URBAN DEVELOPMENT

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized The Federal Democratic Republic of Ethiopia MINISTRY OF WORKS AND URBAN DEVELOPMENT RESETTLEMENT POLICY FRAMEWORK URBAN LOCAL GOVERNMENT DEVELOPMENT PROJECT Draft No. 7B March 14, 2008 Ministry of Works and Urban Development

2 Government of Ethiopia Ministry of Works and Urban Development Urban Local Government Development ULGDP investment project Resettlement Policy Framework CONTENTS Chapter Page 1 INTRODUCTION AND DEFINITIONS Introduction Objective and Scope of the RPF Definitions URBAN LOCAL GOVERNMENT DEVELOPMENT PROJECT Background, Justification & Components ULGDP Scope Participating Urban Local Governments Anticipated ULG investment project types Access Criteria Performance Criteria Compensation Costs ORGANIZATIONAL RESPONSIBILITIES FOR ULGDP IMPLEMENTATION Federal Organizational Responsibilities Regional Organizational Responsibilities Urban Local Governments RPF MAIN PRINCIPLES, ASPECTS, LAWS & REGULATIONS Main Principles of the RPF Legislation Related to Resettlement Planning Expropriation of Land for Public Purposes and Compensation RAP PREPARATION, REVIEW AND APPROVAL Step 1: ULGDP Investment Project Screening Steps 2 and 3: Census Survey and Land Asset Inventory Step 4: Development of the RAP or Abbreviated RAP Step 5: Review and Submission to Regional & Federal Authorities Step 6: RAP Implementation Procedures and Implementation Schedule Step 7: Monitoring and Evaluation ANNEX A: ULGDP ESMF AND RPF SCREENING FORM 29 7 ANNEX B: CENSUS SURVEY AND LAND ASSET INVENTORY FORM 32 8 ANNEX C: COMPENSATION AND EXPROPRIATION REGULATIONS 35 9 ANNEX D: RESETTLEMENT ACTION PLAN ANNEX E: ABBREVIATED RESETTLEMENT ACTION PLAN ANNEX F: SAMPLE COMPLAINT FORM ANNEX G: REGIONAL EPA CONTACTS 46 Urban Local Government Development Project Page i

3 TABLES Table 1 Participating Urban Local Governments...6 Table 2 List of Eligible Investments under ULGDP Component Table 3 ULGDP Project Management Organizational Arrangements...10 Table 4 Proclamation 455/2005: Expropriation of Land Holdings for Public Purposes and Payment of Compensation Table 5 Types of Verifiable Indicators Table 6 Impact Identification and Classification...29 FIGURES Figure 1. Resettlement Policy Framework Figure 2. Individual RAP Preparation, Review and Approval Process Box 1. Box 2. BOXES Contents of a Resettlement Action Plan...23 Required Elements of an Abbreviated RAP...23 Urban Local Government Development Project Page ii

4 ABBREVIATIONS ARAP Abbreviated Resettlement Action Plan MSE Micro and Small Enterprises BOFED Bureau of Finance and Economic Ministry of Works and Urban MWUD Development (Regional) Development BWUD Bureau of Works and Urban Development (Regional) NGO Non governmental organization CBDSD Capacity Building for Decentralized Service Delivery O&M Operation and Maintenance CIP Capital investment plan OM Operational Manual (for the ULGDP) EIA Environmental Impact Assessment PAPs Project Affected Persons EMP Environmental Management Plan PIP Project Implementation Plan EPA Environmental Protection Authority PSCAP Public Sector Capacity Building Support Program Project ESMF Environmental and Social Management Framework RAP Resettlement Action Plan ETB Ethiopian Birr REPA Regional Environmental Protection Authority GOE Government of Ethiopia RPF Resettlement Policy Framework HH Household RUPI Regional Urban Planning Institute HoH Head of Household SNNP Southern Nations Nationalities and People s National Regional State IDA International Development Urban Development Capacity Building UDCBO Association Office (of MWUD) IO Infrastructure Office (for ULGDP) ULGs Urban Local Governments M&E Monitoring and evaluation ULGDP Urban Local Government Development Project MOFED Ministry of Finance and Economic Development VIP Ventilated improved pit latrine Exchange rates used (as at February 21, 2008)) Ethiopian ETB = US Dollar $1.00 Urban Local Government Development Project Page iii

5 Introduction and DEFINITIONs INTRODUCTION This document provides a Resettlement Policy Framework (RPF) for the Urban Local Government Development Project (ULGDP). Financing for the ULGDP is provided by the International Development Association of the World Bank. Participating urban local government (ULGs) and Regional governments will also provide funds to finance ULGDP capital investment projects. The Ministry of Works and Urban Development (MWUD) is the agency responsible for overall implementation of the ULGDP including the provisions of this RPF. The RPF addresses social impacts of the ULGDP - issues of land acquisition resulting from implementation of ULGDP investment projects that may or will result in loss of property or disturbance affecting livelihoods. Another ULGDP document, the Environmental and Social Management Framework (ESMF) addresses physical environment impacts and can be read together with this RPF. The participating ULGs are the main authorities responsible for identifying and implementing ULGDP investment projects. This RPF document is to be used by all implementing agencies of the ULGDP in order to ensure that all environmental and social safeguards are adequately addressed and that the relevant capacity and training needs are established in order for the recommended measures to be implemented effectively. OBJECTIVE AND SCOPE OF THE RPF The use of this Resettlement Policy Framework will be triggered when a proposed ULGDP investment project needs to acquire land and people or property is affected. The objectives of this Resettlement Policy Framework are to: 1. As far as possible ensure that involuntary resettlement and land acquisition is avoided or where it is necessary, is minimized, by exploring all viable alternatives. 2. Where involuntary resettlement and land acquisition is unavoidable, resettlement and compensation activities are prepared and implemented by providing sufficient investment resources according to GOE Proclamation and Regulations 3. Persons displaced by the ULGDP will be meaningfully consulted. Ethiopian Compensation and Expropriation Law and Regulations The ESMF will ensure compliance with the relevant requirements of the laws and regulations of Ethiopia, as described in: (a) Proclamation No 455/2005 Expropriation of Landholdings for Public Purposes and Payment of Compensation establishes the legal principles and framework for expropriation and compensation. A detailed summary is provided in Table 4 on page 18. (b) Council of Ministers Regulations No. 135/2007, on the Payment of Compensation for Property Situated on Landholdings Expropriated for Public Purposes provide the procedures for application of Proclamation No 455/2005. The Council of Ministers Regulations No. 135/2007 is provided in full in Section 0 Annex C on page 35. Relevant environmental legislation and guidelines are described in the ESMF document and contained in: (a) Proclamation No. 295/2002 Environmental Protection Organs Establishment (b) Proclamation No. 299/2002 Environmental Impact Assessment Urban Local Government Development Project Page 1

6 (c) EPA Environmental Impact Assessment Guideline Document, May 2000 (d) EPA Environmental Impact Assessment Procedural Guidelines, Series 1, November 2003 Public Disclosure For projects such as the ULGDP, the World Bank procedures require that the ESMF and RPF are prepared and publicly disclosed prior to project appraisal. This allows the public and other stakeholders to comment on the possible environmental and social impacts of the project, and for the World Bank s Appraisal Team to strengthen the frameworks, particularly measures and plans to prevent or mitigate any adverse environmental and social impacts. To this end, this document will, when agreed between the GOE and the World Bank, be publicly released through the World Bank s InfoShop, and in public locations in Ethiopia prior to project appraisal. Likewise, subsequent EIAs EMPs, ARAPs and RAPs will be disclosed in the same manner prior to start of physical works. DEFINITIONS The terms in bold shall have the following meanings: 1. Affected people, means people who are directly affected socially and/or economically by ULGDP investment projects as a result of: a) the involuntary taking of land and other assets resulting in: relocation or loss of shelter loss of assets or access to assets loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or b) The involuntary restriction or access to legally designated parks and protected areas results in adverse impacts on the livelihood of the displaced persons. 2. Census means a field survey carried out to identify and determine the number of ULGDP investment project affected persons (PAPs), their assets, and potential impacts; in accordance with the procedures for this RPF, satisfactory to the relevant government authorities. 3. Environmental and Social Management Framework (ESMF) is a safeguard instrument (document) which establishes a system for determining and assessing future potential environmental and social impacts of the ULGDP investment project activities and other activities associated with this ULGDP investment project regardless of funding agency. The framework sets out mitigation, monitoring and institutional measures to be taken during design, implementation and operation of the project activities to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. This instrument has been prepared as a separate and stand-alone document to be used with this RPF. 4. Environmental audit is an instrument to determine the nature and extent of all environmental areas of concern at an existing facility. The audit identifies and justifies appropriate measures to mitigate the areas of concern, estimates the cost of the measures, and recommends a schedule for implementing them. 5. Environmental impact assessment (EIA) is an instrument to identify and assess the potential environmental impacts of a proposed project, evaluate alternatives, and design appropriate mitigation, management, and monitoring measures. 6. Environmental management plan (EMP) is an instrument that details (a) the measures to be taken during the implementation and operation of a project to Urban Local Government Development Project Page 2

7 eliminate or offset adverse environmental impacts or to reduce them to acceptable levels; and (b) the actions needed to implement these measures. The EMP is an integral part of Schedule 1 EIAs (irrespective of other instruments used). EIAs for Schedule 2 projects may also result in an EMP. 7. Compensation means payment to be, made in cash or in kind or in both to a person for his property situated on his expropriated land holding. The amount of compensation for property situated on expropriated land shall be determined on the basis of the replacement cost of the property. Compensation payments will be made to displaced persons before physical works commence and the displaced persons property is affected; i.e., during the early stages of implementation of the Resettlement Action Plan or Abbreviated Resettlement Action Plan. 8. Cut-off date The entitlement cut-off date to entitlement to compensation refers to the date when the assessment of persons and their property in the ULGDP investment project area is carried out, i.e. the time when the ULGDP investment project area has been identified and when the site-specific socio-economic study is taking place. After the cut-off-date no new cases of affected people will be considered. The establishment of a cut-off date is required to prevent opportunistic invasions/rush migration into the chosen land areas thereby posing a major risk to the ULGDP investment project. 9. Project affected persons (PAPs) means persons who, for reasons of the involuntary taking or voluntary contribution of their land and/or other assets as a result of the ULGDP project investments, suffer direct economic and/or social adverse impacts, regardless of whether or not the said ULGDP investment project caused persons to physically relocate. These people may have their: Standard of living adversely affected, whether or not the PAP must move to another location; Right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently, adversely affected; Access to productive assets adversely affected, temporarily or permanently; or Business, occupation, work or place of residence or habitat adversely affected. 10. Involuntary Resettlement means the involuntary taking of land resulting in direct or indirect economic and social impacts which leads to physical displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, denial or restriction of access to economic resources. 11. Land refers to agricultural and/or non-agricultural land and any structures thereon whether temporary or permanent and which may be required for the ULGDP investment project. 12. Landholder means an individual, government or private organization or any other organ which has legal personality and has lawful possession over the land to be expropriated and owns property situated thereon. 13. Land acquisition means the taking of or alienation of land, buildings or other assets thereon for purposes of the ULGDP investment project. 14. ULGDP investment project means any urban local government capital investment project which is funded by a ULGDP Performance Grant in whole or in part or which a ULGDP Performance Grant funded investment is dependent upon, regardless of financing source. 15. Resettlement Action Plan (RAP) is a resettlement instrument (document) to be prepared when ULGDP investment project locations are identified. In such cases, Urban Local Government Development Project Page 3

8 land acquisition leads to physical displacement of persons, and/or loss of shelter, and /or loss of livelihoods and/or loss, denial or restriction of access to economic resources. RAPs are prepared by the party impacting on the people and their livelihoods. RAPs contain specific and legally binding requirements to resettle and/or to compensate the affected party before implementation of the project activities causing adverse impacts. Replacement cost means replacement of assets with an amount sufficient to cover lost assets and related transaction costs as described in the definition for compensation in GOE Federal Proclamations, as follows: Land: An urban landholder whose holding has been expropriated under the Proclamation shall: Be provided with a plot of urban land with access to similar public infrastructure services. ULGs will, as much as possible or feasible, provide land in a similar or neighbouring area; and Be paid displacement compensation equivalent to the estimated annual rent of the demolished dwelling house or be allowed to reside, free of charge, for one year in a comparable dwelling house owned by the urban administration. Permanent improvement to land: Compensation for permanent improvement to land shall be equal to the value of capital and labour expended on the land. The cost of removal, transportation and erection shall be paid as compensation for a property that could be relocated and continue its service as before. 16. Resettlement Assistance means the measures to ensure that ULGDP investment project affected persons who may require to be physically relocated are provided with assistance such as moving allowances, residential housing or rentals which ever is feasible and as required, for ease of resettlement during relocation, 17. The Resettlement Policy Framework (RPF) has been prepared as an instrument to be used throughout the ULGDP implementation. The RPF will be publicly disclosed in impacted areas to set out the resettlement and compensation policy, organizational arrangements and design criteria to be applied to meet the needs of the people who may be affected by the program. The Resettlement Action Plans (RAPs) for the ULGDP will be prepared consistent with the provisions of this RPF. Urban Local Government Development Project Page 4

9 Urban Local Government Development Project BACKGROUND, JUSTIFICATION & COMPONENTS The Urban Local Government Development Project is a continuation of a program of reform by the GOE which started with the government s creation of a new institutional and organizational framework for urban local governments in the early 2000s. The World Bank contributed to the early stages of establishing these urban local governments through the Capacity Building for Decentralized Service Delivery Project (CBDSD) which aimed to support the decentralization, reform and capacity building initiative. The CBDSD was followed by support from the Urban Management Sub-program of the Public Sector Capacity Building Program Support Project (PSCAP) that substantially scaled up the capacity building component of the CBDSD. The CBDSD and PSCAP are focused on capacity building to enable regions and cities to establish the necessary institutional and organizational frameworks, and provide a range of training and other technical assistance activities to establish cities as viable entities that are able to fulfil their legal mandates. The ULGDP builds on the CBDSD and PSCAP initiatives by establishing an on-budget, performance-related specific purpose grant as an additional component to the government s fiscal architecture of predictable resource transfers to the urban sector. The specific purpose grant is incentive-driven and is designed to support improvements in infrastructure and service delivery as a result of enhanced performance by the urban local governments (ULGs) in implementing the government s urban reform agenda. The specific purpose grant complements the other fiscal instruments that the government has already created as part of its decentralization strategy, which include: The Regional Block Grant (providing support for recurrent expenditures from the federal treasury); The regional PSCAP Specific Purpose Grant (providing support for capacity building); and The pilot Local Investment Grant (providing support for small capital investments in rural woredas and urban local governments). ULGDP SCOPE The ULGDP developmental objective is: to support improved performance in the planning, delivery and sustained provision of priority municipal services and infrastructure by urban local governments as well as contribute to the implementation of the government s Urban Development and Urban Good Governance Programmes. IDA support for the ULGDP will, initially, be contained within a 5 year period, with the Project Effective Date expected in August/September The ULGDP has two components:- Component 1: Performance Grants which constitute the vast majority of the project funds and would be disbursed as per the access and performance criteria stated in the ULGDP Operational Manual. Component 2: Implementation Support which reserves a very small (less than 1%) amount of the project funds to finance planning and implementation of the ULGDP. As a result of enhanced performance, the ULGDP Performance Grants will enable cities, to: a) More effectively address urban infrastructure backlogs; b) Facilitate local economic development and to generate employment; and Urban Local Government Development Project Page 5

10 c) Provide incentives for urban local governments and regions to implement the government s proposed reforms under the Urban Development and Urban Good Governance Programs; which are needed for sustainable urban services and growth. The key trigger for ULG access to ULGDP funds will be preparation and submission of 3- year capital investment plans. The 3-year capital investment plans should be: (a) realistic; (b) technically sound; (c) responsive to real community priorities; and (d) sustainable for operations and maintenance. These investment plans will form the core of the ULGs initial 3-year capital investment and annual applications for ULGDP funding and must, therefore, be prepared and submitted in a timely fashion and in formats that will enable Regional Bureaus of Works and Urban Development 1 (BWUDs) and the MWUD to adequately review and approve the requests. The planning and budgeting for ULGDP at federal, regional and ULG levels will be integrated into and aligned with the existing GOE Public Investment Program financial calendar and systems. PARTICIPATING URBAN LOCAL GOVERNMENTS For the start of the ULGDP 19 cities will be invited to prepare and submit applications for ULGDP Performance Grants. These are indicated in Table 1 below. Table 1 Participating Urban Local Governments City Addis Ababa City Government Dire Dawa City Administration Bahir Dar, Dessie, Gondar and Kombolcha Harar Adama, Bishoftu, Jimma and Shashemene Awassa, Arba Minch, Dila and Sodo Federal Chartered City or Regional State Federal Chartered City Federal Chartered City Amhara Regional State Harari Regional State Oromia Regional State Southern Nations Nationalities & Peoples Regional State Mekele, Adigrat, Axum and Shire Tigray Regional State Endasellassie The 19 cities contain a population of approximately 5.5 million comprising about 43% of Ethiopia s total urban population 2. These 19 cities have been selected for two main reasons: a) it is important to focus on large sized investments so that substantial impact can be achieved so as to avoid a large number of small investments that have little real impact; and b) to focus the ULGDP investment in those 18 cities that have already received substantial capacity building support through the CBDSD project, including development of 5 year capital investment plans, plus the capital city, Addis Ababa. In this document these cities are referred to as urban local governments (ULGs). 1 2 Regional BWUDs will work in close consultation with Regional Urban Planning Institutes. This data is based on the 1995 census estimates for July These will be updated with the May 2007 census data once this is released in Urban Local Government Development Project Page 6

11 ANTICIPATED ULG INVESTMENT PROJECT TYPES Component 1 The list of eligible investments will include all sectors for which ULGs have legal responsibility for investment, comprising, but not limited to those described in Table 2. ULGs are encouraged to focus on projects that will contribute directly to creating jobs and increasing incomes, including labour intensive projects. Table 2 sets out a list of the types of ULG investment projects that are likely to be undertaken as part of the ULGDP. Table 2 List of Eligible Investments under ULGDP Component 1 Infrastructure/Service Roads Integrated infrastructure and land services (for housing, SME, industrial zones) Sanitation (Liquid Waste) Sanitation (Solid Waste Management) Water Supply Urban drainage Built Facilities Consultancy services Type Cobblestone, gravel and red ash roads, rehabilitation of roads, bridges, fords and culverts, pedestrian ways and street lighting, etc Land development, servicing land with utilities (water supply, electricity, telecommunications and survey), roads and drains solid & liquid waste collection & disposal, etc Sewer reticulation systems, wastewater treatment ponds, sludge ponds, community soak away pit and septic tanks, community latrines: dry pit, ventilated improved pit latrine, composting, drainage canals, vacuum trucks and vacuum handcarts, etc Transfer stations, collection points, collection bins, landfills, biogas and composting plants, collection trucks, other collection equipment and landfill site equipment including compaction vehicles, etc. Spring catchments and gravity distribution system, river intake (run of river/dam), treatment works and pressure distribution, wells with submersible pumps, treatment works and pressure distribution, rehabilitation or expansion of existing system, communal standpipes, etc Drainage and flood control systems, etc Urban markets with associated services (water supply, drainage, access roads, etc), development of production and market centres for small businesses, slaughter houses with by-products processing facilities, etc For studies relating to, preliminary and detailed design, contract documentation and supervision relating to the above infrastructure and services, etc. Component 2 It is expected that only a very small (less than 1%) amount of IDA ULGDP funds will be required for implementation support. The funds necessary, in addition to the sources outlined below, will finance further training and capacity building initiatives as required to support implementation. This will include supervision and other support activities such as regional visits, workshops, seminars, evaluations and meetings; consultancy services to support cities in the implementation of the Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) activities as required - including screening, preparation of environmental impact assessments, environmental management plans, cultural resource management plans, and resettlement action plans, and Urban Local Government Development Project Page 7

12 monitoring compliance with safeguards frameworks; a MOFED based expert responsible for financial disbursements and reporting (if required); support for preparation of mid-term and final evaluation reports (including the Implementation Completion Report), etc. Note: ULGDP support activities that are required prior to the ULGDP fund availability (the Project Effective Date), including training for implementing agencies on the ULGDP Operational Manual, Urban Infrastructure and Asset Management Manual, ESMF and RPF, as well as any other necessary activities, will be funded from CBDSD or PSCAP. ACCESS CRITERIA Eligible urban local governments will need to meet certain criteria to access funds under the project. The criteria, at a minimum, provides assurances that: (a) funds will be managed adequately, and (b) proposed investments by the cities adequately represent the priorities of citizens, will generate jobs and promote the local economy, can be implemented to acceptable standards and can be operated and maintained adequately. As such, the following criteria have been proposed: a) Submission of a signed Participation and Performance Agreement by each ULG; b) Submission of a rolling 3-year capital investment plan based on a consultative process with a detailed annual action plan, approved by City Council; c) Demonstration of own budgetary resources adequate to meet (a) counterpart funding requirements; and (b) existing and future O&M requirements 3 over the 3- year capital investment plan period; d) Improved financial management systems in place, with evidence of an adequate internal audit system; and e) Adequate human resource capacity to consult, plan, implement and sustainably manage priority services and infrastructure. PERFORMANCE CRITERIA While cities will be allocated funding envelopes once they meet the access criteria, their performance in the use of the funds and in the implementation of the reforms being promoted through the Urban Development and Urban Good Governance Programs, will be assessed. To encourage good performers, and to ensure that funds are not locked by poor performers, reallocations will be carried out periodically. Reallocations will be based on annual performance reviews. MWUD is creating a system of annual performance reviews to follow the implementation, at regional and city levels, of the MWUD s Urban Development and Urban Good Governance Programs. The review of regional and city performance related to the implementation of this project will be incorporated as part of the regular annual review process of MWUD. The criteria for assessing performance will be based on measures related to: a. Works implementation progress (60% in the first year of ULGDP, 75% in the second year and 100% in the 3 rd year); b. Fund utilization (65% in the first year, 80% in the second year and 100% in the 3 rd Year); c. Financial performance (revenue targets should be met 100% in the 2 nd year of ULGDP; annual reports should be submitted on time as per the financial regulation; completion of audits as per the financial regulation); d. Procurement and safeguards compliance (100%); and 3 O&M requirements to be calculated based on the MWUD s proposed asset management framework Urban Local Government Development Project Page 8

13 e. Timely submission of project physical and financial performance reports as per the PIP and OM. COMPENSATION COSTS Compensation will be made by ULGs from the local contribution of 20% of the ULGDP Performance Grant amount. It is essential that sufficient budget is provided for all compensation and resettlement costs. It is difficult to determine the budget required for resettlement activities and compensation, in advance of identification and screening of ULGDP project investments by each ULG. This can be done by assuming that approximately 1% of the budget for the ULGDP program will go towards resettlement planning, assistance and compensation. Urban Local Government Development Project Page 9

14 Organizational Responsibilities for ULGDP Implementation Immediately after project appraisal (March 2008) an exercise will be carried out to review existing capacity of all implementing agencies (procurement, financial management, procurement, contract management, design & supervision, infrastructure asset management, planning, environmental assessment, resettlement & compensation, etc) to identify: 1. Any human resource gaps and the means of and deadline for filling gaps (job descriptions and/or TOR will be developed if consultants are to be hired to fill gaps); 2. Any other gaps in office space, equipment, etc; and 3. Any financial needs/resources that need to be included in EFY 2001 and subsequent budgets. A simple guideline will be prepared by MWUD to guide ULGs/Regions in carrying out and reporting back on this exercise which will aim to ensure that all project implementation capacity and resources required are identified and secured. Table 3 ULGDP Project Management Organizational Arrangements 4 MINISTRY OF WORKS AND URBAN DEVELOPMENT UDCBO BUREAUS OF WORKS AND URBAN DEVELOPMENT & Regional Urban Planning InstituteS URBAN LOCAL GOVERNMENT AUTHORITIES: ADAMA, ADDIS ABABA, ADIGRAT, ARBA MINCH, AWASSA, AXUM, BAHIR DAR, BISHOFTU, DESSIE, DILA, DIRE DAWA, GONDAR, HARAR, JIMMA, KOMBOLCHA, MEKELE, SHASHEMENE, SHIRE ENDASELLASSIE AND SODO INFRASTRUCTURE OFFICES The following section describes the organizational responsibilities for ULGDP implementation. The two main project management systems required for ULGDP implementation are: a) For overall project management led by MWUD. Only those responsibilities relating to the implementation of the ESMF and RPF are included. Full details of overall project management responsibilities are contained in the ULGDP PIP and Operational Manual; 4 Participating Urban Local Governments will establish Infrastructure Offices not specifically for ULGDP implementation but as part of a wider, parallel and ongoing initiative to strengthen ULG organizational focus and capacity for integrated infrastructure planning and management. Addis Ababa and Dire Dawa may not need to establish infrastructure offices as they already have established organizational entities such as the Addis Ababa City Road Authority and Addis Ababa Water and Sewerage Authority. ULGs may, where necessary, offer higher and more attractive salaries to attract suitably qualified staff for ULGDP implementation. Urban Local Government Development Project Page 10

15 b) For transfer of funds, financial management and reporting led by MOFED. Organizational responsibilities relating to transfer of funds, financial management and reporting are excluded from this ESMF document as they are described in the ULGDP PIP and Operational Manual FEDERAL ORGANIZATIONAL RESPONSIBILITIES The implementation of ULGDP will use existing government structures with MWUD having overall implementation responsibility in accordance with its federal mandate. No new organizational structures will be established at the Federal or Regional levels. Ministry of Works and Urban Development As the federal agency with overall implementation responsibility for ULGDP, the Ministry of Works and Urban Development will be responsible for the tasks indicated below. The MWUD will assign specific responsibility for day to day management of the Ministry s responsibilities to the Urban Development Capacity Building Office (UDCBO). UDCBO will serve as the coordinating body across federal, regional and local agencies. If needed, additional staff may be recruited to complement or strengthen existing capacity. UDCBO will hire an Environmental and Social Specialist whose responsibility will include supervising the overall implementation of the ESMF and RPF, providing support to agencies with a role in the ESMF such as the Environmental Council, the Environmental Protection Authority, BWUDs/RUPIs and ULGs. The duties and responsibilities of UDCBO as the ULGDP coordinating unit relevant to the ESMF and RPF (a full list is included in the Project Implementation Plan) include the following: a. Ensuring smooth implementation and forward planning including identification and mitigation of constraints/problems and exploitation of opportunities arising. b. Following up the day-to-day preparation and implementation of the project and providing effective and efficient management of the ULGDP; c. Ensuring timely reports are produced by participating ULGs/Regions, consolidated and presented to the Minister/World Bank as required and when endorsed disseminate them to the right users; d. Coordinating ULGDP implementation, facilitating flow of information and keeping consolidated documentation on a national basis; e. Providing assistance to regional and local governments as needed, other stakeholders, subcommittees, technical groups, monitoring, review and evaluation teams; f. Determining overall capacity building and specific training needs, provision of training to meet ULGDP needs (OM, PIP, ESMF, RPF), establishing and administering the budget (ULGDP component 2) to meet capacity building and training needs; g. Monitoring and reporting on overall ULGDP implementation progress; Coordinate and consolidate ESMF audit reports, monitor and evaluate ESMF and RPF implementation; Monitor key performance indicators and facilitate regional preparation of reports; h. Recruiting key staff for ULGDP implementation; i. Facilitate cities meeting access/performance criteria; and Urban Local Government Development Project Page 11

16 j. Verifying compliance with Ethiopia s and the World Bank s environmental, cultural, resettlement and other relevant safeguards. REGIONAL ORGANIZATIONAL RESPONSIBILITIES Bureaus of Works and Urban Development (BWUDs) In each of Ethiopia s five participating regions the Bureaus of Works and Urban Development (BWUDs) 5 will be the coordinating body to oversee, coordinate and facilitate the implementation process of the ULGDP for local governments under their jurisdiction. The Regional Bureaus of Works and Urban Development will work in close consultation with and delegate specific functions to Regional Urban Planning Institutes (RUPIs). BWUDs will be responsible for the following functions: a) Ensuring that participatory planning processes are undertaken by the ULGs; b) Collaborating with local governments in enforcing ULGDP operating guidelines, ESMF, RPF and other ULGDP or government procedures. Providing technical assistance to cities for implementation and compliance with safeguards and prevailing technical standards. URBAN LOCAL GOVERNMENTS The operational framework for planning and implementing ULGDP investment projects will be through a consultative process with the appropriate stakeholders at the local government level. Within each ULG, Infrastructure Offices (IOs) will be responsible for implementation of the ULGDP. Urban Local Governments will be the highest body that will oversee, coordinate and implement ULGDP activities through their Council. ULGs will determine the allocation of the tasks for which they are responsible, as listed below, to ULG Bureaus, departments or units, including Infrastructure Offices: a) Include in ULG CIPs, Annual Plans and budgets 20% ULG contribution to ULGDP Performance Grants received and provide contribution; b) Manage the implementation of the ULGDP investment projects and planning in advance for the sustainable operation and maintenance of ULGDP investment after project completion; c) Undertake OM, ESMF, RPF and overall ULGDP training. Identify capacity building needs and inform BWUDs/MWUD of these needs. d) Implement and follow OM, ESMF and RPF procedures, including ESMF and RPF reporting requirements; e) Assist communities in undertaking planning and implementation exercises, and mobilize needed local resources and monitor their use; f) Organize joint reviews and evaluate the ULGDP activities and results; g) Consult and report regularly to the ULG City council regarding the progress of ULGDP implementation; h) Implementing actions to satisfy reforms/performance requirements; i) Ensuring adequate staffing; The development and implementation of the ESMF and RPF may involve a number of processes which include: 5 The City Manager s Office will play this role in AACG and DDCA. Urban Local Government Development Project Page 12

17 a. An environmental screening to identify the potential severity of environmental impacts including land acquisition, resettlement and cultural resources; b. Where required as a result of the environmental screening, development of: Full or partial Environmental Impact Assessments; Environmental Management Plans; Full or abbreviated Resettlement Action Plans; A Physical Cultural Resources Management Plans; and And implementation of environmental mitigation measures. The main responsibility for initiating and carrying out these activities will be the responsibility of the ULG IO 6. The regional BWUDs will provide a review role, and provide political and administrative support for the implementation of the EIAs and RAPs, while the MWUD/UDCBO will ensure that there is compliance with the ESMF and RPF and national legislation, and that information is gathered in one place for overall ULGDP project monitoring and progress reporting. Addis Ababa City Government and Dire Dawa City Administration Addis Ababa City Government and Dire Dawa City Administration are federal chartered cities who combine the authority, functions and responsibilities of regional BWUDs and BOFEDs as well as of Urban Local Governments. Hence, regarding the ULGDP: 1. The Bureau of Finance and Economic Development will have the authority to carry out the tasks and assume the responsibilities assigned to BOFEDS; and 2. The City Manager and City Manager s Office will have the overall authority (including the authority to delegate tasks), carry out the tasks and assume the responsibilities assigned to BWUDs and ULGs. 3. The City Manager will determine the infrastructure body/office responsible for the implementation of the infrastructure project. 6 If necessary with support from local consultants contracted by MWUD/UDCBO Urban Local Government Development Project Page 13

18 RPF Main Principles, Aspects, Laws & Regulations The use of this Resettlement Policy Framework will be triggered when a proposed ULGDP investment project needs to acquire land and people or property is disturbed. For example: a piece of land is needed and people are affected because they have houses, shops or other permanent or temporary buildings on that land; use the land for water and grazing of animals; or they otherwise have access to the land for economic, religious, residential or other purposes which will not be possible during and after the ULGDP investment project is implemented. MAIN PRINCIPLES OF THE RPF The aims of this Resettlement Policy Framework are: 1. As far as possible to ensure that involuntary resettlement and land acquisition is avoided or where it is necessary, is minimized, by exploring all viable alternatives. 2. Any persons adversely affected by ULGDP will be supported by enabling them to get jobs and other assistance similar to the support provided through the UDP for MSEs. 3. Where involuntary resettlement and land acquisition is unavoidable, resettlement and compensation activities are prepared and implemented by providing sufficient investment resources according to GOE: Proclamation No. 455/2005 Expropriation of Landholdings for Public Purposes and Payment of Compensation; and Council of Ministers Regulations No. 135/2007, on the Payment of Compensation for Property Situated on Landholdings Expropriated for Public Purposes. Project affected persons (PAPs) means persons who, for reasons of the involuntary taking or voluntary contribution of their land and/or other assets as a result of the ULGDP project investments, suffer direct economic and/or social adverse impacts, regardless of whether or not the said ULGDP investment project caused persons to physically relocate. These people may have their: Standard of living adversely affected, whether or not the PAP must move to another location; Lawful possession of any house, land or any other fixed or movable asset acquired or possessed, temporarily or permanently, adversely affected; Access to productive assets adversely affected, temporarily or permanently; or Business, occupation, work or place of residence or habitat adversely affected;..provided that they meet the requirements of the Proclamation 455/2005 which states that: A landholder whose holding has been expropriated shall be entitled to payment of compensation for his property situated on the land and for permanent improvements he made to such land. A landholder: means an individual, government or private organization or any other organ which has legal personality and has lawful possession over the land to be expropriated and owns property situated thereon Compensation means payment to be, made in cash or in kind or in both to a person for his property situated on his expropriated land holding. The amount of compensation for property situated on expropriated land shall be determined on the basis of the replacement cost of the property. Compensation payments will be made to displaced persons before physical works commence and the displaced persons property is affected; i.e., during the Urban Local Government Development Project Page 14

19 early stages of implementation of the Resettlement Action Plan or Abbreviated Resettlement Action Plan. Replacement cost means replacement of assets with an amount sufficient to cover lost assets and related transaction costs as described in the definition for compensation in GOE Federal Proclamations, as follows: Land: An urban landholder whose holding has been expropriated under the Proclamation shall: Be provided with a plot of urban land with access to similar public infrastructure services. ULGs will, as much as possible or feasible, provide land in a similar or neighbouring area; and Be paid displacement compensation equivalent to the estimated annual rent of the demolished dwelling house or be allowed to reside, free of charge, for one year in a comparable dwelling house owned by the urban administration. Permanent improvement to land: Compensation for permanent improvement to land shall be equal to the value of capital and labour expended on the land. The cost of removal, transportation and erection shall be paid as compensation for a property that could be relocated and continue its service as before. Resettlement Action Plans: The implementation of Resettlement Action Plans or Abbreviated Resettlement Action Plans - see Figure 1. Resettlement Policy Framework on the following page - is required for the implementation of each ULGDP investment project that causes resettlement of 25 or more persons. Where relocation or loss of shelter occurs, the RPF requires that measures to assist the displaced persons be implemented in accordance with the Resettlement Action Plans. Consultation: The RPF seeks to ensure that affected communities are meaningfully consulted, have participated in the planning process. Training and capacity building for implementation of this RPF includes sensitization and awareness-raising. These are included in the ESMF in the section that describes the ULGDP ESMF Training and capacity building components. Urban and Rural Aspects of Resettlement: Although the majority of ULGDP investment projects are expected to impact mainly on urban areas and urban residents, urban infrastructure investments frequently have direct and indirect impacts on rural areas. For this reason, this RPF provides for cases of compensation and resettlement in both urban and rural situations. For example: Direct impact: Urban investment projects frequently have direct impact on rural residents and holdings where urban expansion involves development of per-urban areas for residential or industrial or other types of development. Development of solid waste landfill sites, waste water treatment works and sludge ponds for disposing of septic tank waste, often take place on the urban fringe or wholly within surrounding rural areas. Indirect impact: Development of urban roads, drains and other works frequently involves establishment of borrow pits in surrounding rural areas for production of aggregates for road base courses or removal of sand or clay deposits. Urban Local Government Development Project Page 15

20 Figure 1. Resettlement Policy Framework ESMF/RPF ENVIRONMENTAL SCREENING LAND ACQUISITION IMPACT IDENTIFIED NO LAND ACQUISITION IMPACT IDENTIFIED 1 TO 199 INDIVIDUALS ARE AFFECTED 200 OR MORE INDIVIDUALS ARE AFFECTED STANDARD ESMF PROCESSES - Census of affected people and affected assets - Development of an Abbreviated Resettlement Action Plan (ARAP) - Review and approval of the ARAP by the Region s BWUD, REPA, MWUD and World Bank. - Disclosure of the ARAP through the World Bank InfoShop - Delivery of compensation and other entitlements as per this RPF, and the specific ARAP - Census of affected people and affected assets - Development of a Resettlement Action Plan (RAP) - Review and approval of the RAP by the Region s BWUD, REPA, MWUD and World Bank. - Disclosure of the RAP through the World Bank InfoShop - Delivery of compensation and other entitlements as per this RPF, and the specific RAP Note: In cases where more than 200 people are affected, but none of them are physically displaced AND none of them lose 10 percent or more of their productive assets, then an ARAP is acceptable. Urban Local Government Development Project Page 16

21 LEGISLATION RELATED TO RESETTLEMENT PLANNING The 1995 Constitution of Ethiopia, Article 40(2), 40(4), 40(5) and 40(8) includes provisions that protect the Ethiopian citizen s rights to private property and set conditions for expropriation of such property for state or public interests. For immovable property built on land, the Constitution states that Every Ethiopian shall have the full right to the immovable property he builds on the land and to the improvements he brings about on the land by his labour or capital. According to Article 40(8) of the Constitution, the State may expropriate private rights over land: with out prejudice to the right to private property, the government may expropriate private property for public purpose with prior payment of adequate compensation. Again, Article 44(2) of the 1995 Constitution stipulates that all people who have been displaced or whose livelihoods have been adversely affected as a result of State programs shall have the right to receive adequate monetary or other alternative compensation, including transfer with assistance to another locality. Proclamation No 455/2005 Expropriation of Landholdings for Public Purposes and Payment of Compensation establishes the legal principles and framework for expropriation and compensation. A detailed summary is provided in Table 4 on page 18. Council of Ministers Regulations No. 135/200, on the Payment of Compensation for Property Situated on Landholdings Expropriated for Public Purposes provide the procedures for application of Proclamation No 455/2005. The Council of Ministers Regulations No. 135/2007 is provided in full in Section 0 Annex C on page 35. EXPROPRIATION OF LAND FOR PUBLIC PURPOSES AND COMPENSATION Eligibility/ Entitlement Eligibility for compensation is discussed in Article 44(2) of the 1995 Constitution and Proclamation No 455/2005. These give entitlement only to those who have formal legal rights over their land holdings (properties). Proclamation No 455/2005, Article 2 (3) stipulates that Landholder means an individual, government or private organization or any other organ which has legal personality and has lawful possession over the land to be expropriated and owns property situated thereon. According to Article 7(1) and (2),.a landholder whose holding has been expropriated shall be entitled to payment of compensation for his property situated on the land and for permanent improvements he made to the land. The amount of compensation for property situated on the expropriated land shall be determined on the basis of the replacement cost of the property. Displaced persons without legal title: In order to ensure that displaced persons who do not have legal title are not adversely affected by ULGDP investments they will be enabled to maintain their livelihood and assisted to secure accommodation as more fully described below: (a) Support will be provided by giving them jobs: a) directly, as created by the project; or b) through the MSE development program which is underway in most Ethiopian cities, including the 19 project cities, in the form of training, easier access to credit, marketing support to establish businesses and business premises. This is expected to improve livelihoods so that displaced persons will be more able to provide for their alternative shelter; and (b) In addition, assistance will be provided by the project, to those displaced persons who are not urban landholders and who, as a result of project activities, lose fixed improvements on land they occupy, to secure accommodation as per the housing policies and programmes of the ULG. Urban Local Government Development Project Page 17

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