VAN: Port Vila Urban Development Project

Transcription

1 Resettlement Plan December 2015 VAN: Port Vila Urban Development Project Roads and Drainage Sub Project Phase 1 Works (Ex-Southern Section) Prepared by Ministry of Infrastructure and Public Utilities (MIPU), Government of Vanuatu Bank for the Asian Development Bank. This is an updated version of the draft originally posted in June 2011 available on 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.

2 GOVERNMENT OF VANUATU PORT VILA URBAN DEVELOPMENT PROJECT DOCUMENT NUMBER: 36 Asian Developm ent Bank Loan No.2832-VAN (SF)/ G0275-VAN/ G0276- VAN RESETTLEMENT PLAN Roads and Drainage Sub Project Phase 1 Works (Ex-Southern Section) December 2015

3 Prepared by: Ministry of I nfrastructure and Public Utilities (MIPU) for the Asian Developm ent Bank Republic of Vanuatu: Port Vila Urban Development Project Financed by: Asian Development Bank (ADB) The Australian Government Department of Foreign Affairs & Trade (DFAT) The Government of Vanuatu For: Ministry of Finance & Economic Management (Executing Agency) Ministry of Infrastructure & Public Utilities (Key Implementing Agency) Department of Environmental Protection & Conservation (Key Implementing Agency)

4 Notice This report was produced by VPMU for the Ministry of Finance & Economic Management (MFEM) (the Executing Agency (EA), Ministry of Infrastructure and Public Utilities (MIPU), (IA), Public Works Department (PWD)(IA), and the Department of Environmental Protection & Conservation (DEPC)(IA) for the specific purpose of describing the potential involuntary resettlement impacts and proposed mitigation measures in relation to the Roads and Drainage Subcomponent project. This report may not be used by any person other than by the MIPU s expressed permission. In any event VPMU accepts no liability for any costs, liabilities or losses arising as a result of the use of or reliance up the contents of this report by any person other than the MIPU and the project donor agencies, the Asian Development Bank and DFAT. Document History DOCUMENT REF: JOB NUMBER: VAN005 DRAFT RESETTLEMENT PLAN FOR ROADS AND DRAINAGE (SOUTHERN SECTION) 0 Initial issue VPMU L. Carlson 4 August 2015 Updated VPMU L. Carlson 7 December 2015 Rev Purpose / Description Originated Checked Reviewed Authorised Date CURRENCY EQUIVALENTS (as of August 2015) Currency Unit Vatu 100 Vatu = $0.88 $1 = VT 113 W EI GHTS and MEASURES Metric system except for land areas (1 acre = 0.4 hectares)

5 TABLE OF CONTENTS ABBREVIATIONS 6 EXECUTIVE SUMMARY 8 I. Introduction 12 II. Project Description 12 III. Scope of Land Acquisition and Resettlement 13 IV. Socioeconomic Information and Profile 14 A. Enumeration of Affected People 14 B. Socio-economic Profile of Neighboring Communities and APs 16 C. Likely Impacts of Land Acquisition on Affected People and Businesses 17 D. Indigenous Peoples 18 E. Gender Impacts, Needs, Priorities of Women APs 18 V. Information Disclosure, Consultations, and Participation 18 A. Stakeholders 18 B. Consultation with APs and Stakeholders 20 C. Summary of Consultation Results 20 VI. Grievance Redress Mechanisms 21 VII. Legal Framework 22 VIII. Entitlements 30 A. Eligibility for Compensation 30 B. Entitlement Matrix 30 X. Resettlement Budget and Financing Source 31 XII. Institutional Arrangements 31 A. Responsibilities to Implement RP 31 B. Capacity Building 31 XIII. Implementation Schedule 31 XIV. Monitoring and Reporting 32 APPENDICES Appendix 1: Affected Persons Inventory of Losses 34 Appendix 2: Process for Establishment of Road and Public Access Easements 36 Appendix 4. List of Persons Consulted by Safeguard Consultants 41

6 LIST OF TABLES Table 1: Road and Drainage Technical Data Table 2: Scope of Easement Requirement Table 3: Affected People and Businesses Table 4: Estimated Loss of Lands and Other Assets Table 5: Procedures for Resolving Grievances Table 6: Comparison of Land Acquisition and Resettlement Laws in Vanuatu and ADB SPS Table 7: Entitlement Matrix Table 8: Preliminary Budget Table 9: Implementation Schedule... 32

7 ABBREVIATIONS ADB - Asian Development Bank AP - Affected persons/people AB - Affected businesses CBD - Central Business District CBO - Community Based Organization DD - Due Diligence DP - Displaced Person DFAT - Department of Foreign Affairs and Trade EA - Executing Agency GAP - Gender Action Plan GRC - Grievance Redress Committee MIPU - Ministry of Infrastructure and Public Utilities NGO - Non-Government Organization PMU - Project Management Unit PPTA - Project Preparation Technical Assistance PVUDP - Port Vila Urban Development Project RP - Resettlement Plan TOR - Terms of Reference TA - Technical Assistance

8 DEFINITION OF TERMS 1 Alienated land -- customary land whose ownership has been transferred to private individuals or which has been acquired by the government. Customary land - land owned or occupied, or an interest in land held, by one or more persons in accordance with the rules of custom. Custom owner - the person who in the absence of a dispute, the Minister is satisfied is the custom owner of land; Easement - a right attached to the land comprised in a registered lease which allows the proprietor thereof to either use the land comprised in another registered lease in a particular manner or to restrict its use to a particular extent, but does not include a profit; Lease - the grant with or without consideration, by the owner of land of the right to the exclusive possession of his land, and includes the right so granted and the instrument granting it, and also includes a sublease but does not include an agreement for lease; Lessee - the proprietor of a lease or his successor in title; Lessor - the person who has granted a lease or his successors in title; State land - all land in Vanuatu that on the 1st day of January 1980 was owned in freehold or perpetual ownership by the British Government, the French Government, the Condominium or a Municipality. Construction limit -- an area of land around the construction site where equipment is positioned, workers undertake their duties, and aggregates or construction materials are placed ready for use and subject to the conditions of the contract. 1 As described in Vanuatu legislation 7

9 EXECUTIVE SUMMARY The Port Vila Urban Development Project (PVUDP) aims to improve drainage, roads, and sanitation systems in the greater Port Vila municipality and adjacent urban and peri-urban areas. The project will implement the recommendations of the drainage and sanitation master plan 2, which identified priority interventions for improved access and support to affordable, sustainable, and effective sanitation, roads, and storm water drainage services, contributing to climate-resilient urban development in and around Port Vila. Project Components The PVUDP has five target outputs 3. This Resettlement Plan has been prepared for Output 1: The Government has improved the road network and drainage system in greater Port Vila. The road improvement will utilize existing road carriages. The improvement of the drainage system however will require (i) rehabilitation and construction of 9 new drainage points within and outside the CBD to upgrade the deteriorating and inadequate drainage network in the Port Vila business district; and (ii) improvement of existing Public Access Areas (PAAs) such as footpaths, walkways and carparks to ensure safety and ease of access to establishments within the CBD. These existing PAAs have typically been built across the road boundary and lie partly on leasehold land. Scope of Land Acquisition (Drainage Easement) The project will require about 2,700 m² (.27 hectares) of private leasehold land parcels to upgrade the deteriorating drainage system within the city center and the CBD. Nine (9) corporate and individual leaseholders will be asked to create a 3 to 5-meter wide easement on their lands to address the increasingly serious flooding in Port Vila s CBD and nearby areas. In addition, approximately 177 public access areas partly built across smaller leasehold lands within and outside the CBD will also be upgraded, but unlike the drainage easement leaseholds, will not be required by the government to change conditions of their lease. The government will invest in upgrading these areas under the project subject to landowners/leaseholders consent. Those who will not provide consent will be excluded from the project. Affected People and Businesses in the Central Business District Owner of Land Business Requirement Leaseholders (Businesses) 1. North Vila No. 1 Limited (opposite Tana Russet Mall) (Ser. 1) 2. South Pacific Equity Limited (Chantilly s) (Ser.2) 3. Tru Thi Nga (Next to Tafea Company Company Individual With Structure on Land Impacts (structure, crops, etc) 555 m² Vacant NIL 150m² Vacant NIL Rental 120m² business Yes Consent Status Signed consent Signed consent Consent signed 2 Asian Development Bank (ADB) Technical Assistance to the Republic of Vanuatu for Preparing the Port Vila Urban Development Project. Manila. 3 Other project outputs include (ii) Government has improved the sanitation system in greater Port, (iii) Central area and settlement communities use improved hygiene facilities; (iv) Government agencies and community and user organizations have the capacity to effectively and efficiently manage sanitation, roads and drainage systems, and (v) Efficient project management services are provided. 8

10 Leaseholders (Businesses) Owner of Business Land Requirement Guesthouse) (Ser.3) 4. Tru Thi Vinh Individual (Next to Tafea Guesthouse) (Ser. 4) 120m² 5. Crown Properties Company Limited (Australian Businessman) (Ser.11) 6. Hoang Vu Thi Phi Individual (Homeowner) (Ser. 18) 7. Iona Limited (Fatumaru Company Lodge) (Ser. 29) 8. Fragephi Trust ( same as no.9) (Ser. 39) Company 120m² 9. Seventh Day Adventist With Structure on Land Rental business Impacts (structure, crops, etc) Yes 210m² Vacant NIL 250m² Driveway Yes 320m² Vacant NIL Vacant walkway NIL (Ser.45) 850 m² Vacant NIL Total 2,695 m² Consent Status Consent signed Consent signed Consent signed Consent signed Consent signed Consent signed Likely Impacts and Support for Land Acquisition of Affected People There is no expected risk of landlessness, loss of home, and/or loss of major income source from the project. The 9 APs/ABs resulting from the drainage easement will collectively lose approximately 2,695 sq meters of land, about 3 driveways to rehabilitate or expand existing drainage points within their properties. Commonly all interviewed APs/ABs interviewed indicated a strong level of support for the project, while wanting to maintain their rights in relation to their land. Where initial drainage designs were rejected, they offered viable solutions to enable the project to succeed. There is a high level of recognition that this project will benefit their business, either directly through increased tourism or indirectly through better roads, improved business conditions generally and increased land values over time. There are no expected negative impacts on the social structure of the APs/ABs and the communities around the project site, since granting of easement for the drainage and pedestrian lanes will not involve physical or economic displacement. In addition, there are no expected adverse impacts on cultural identities or heritage of the affected companies and individual businesses resulting from granting of public easement. Eligibility for Compensation The date of land investigation report will be the cut-off date for eligibility for compensation. Following are the procedures summarizing eligibility for compensation and other assistance to APs: (i) Landowners and/or users that have documented legitimate claims to the affected land, crops and as of the cut-off date will be eligible for compensation (in this case, non-monetary through replacement of damaged structures) and/or rehabilitation assistance as per the project policy; and (ii) Any person or group that occupies or uses the land identified for the project construction after the cut-off date will not be eligible for any compensation and/or assistance. The eligibility and entitlement are summarized below: 9

11 Entitlement Matrix Type of Impact Entitled Person(s) Entitlements 1. Loss of land use Commercial or residential Government Leaseholders: The leaseholder earning income through land use for gardens or business (eg, storage, vehicle parking, etc.) purposes (ref to Resettlement Framework) Government to pay cost for change in the lease conditions (by surrendering rights, in this case easement) over a portion of the leasehold, at no cost (including government administrative fees) to the leaseholder. 2. Temporary loss Land /structures owners/users Repair damaged land or structure caused by the subproject, immediately after installation of drainage/road maintenance in the said area (within 5 days) 3. Unforeseen or unintended impacts Concerned affected people Determined as per the principles of the RP and ADB's safeguard policy. Guided by the RP, following is the implementation schedule for project s resettlement activities to: (i) disclose the Draft RP (ii) update the RP; (iii) implement the RP; and, (iv) monitor its implementation. The Draft RP public disclosure is scheduled on August- September 2015, updating of the RP is scheduled on November 2015, RP implementation and monitoring beginning October Implementation Schedule Draft Central Business District (Southern Section) Land Easement and Compensation Schedule Main Resettlement Plan Activities Resettlement Plan (RP) Preparation Detailed engineering design finished and scope of works known Land access through change of lease condition through negotiated agreement for 9 drainage leaseholders Change of Lease Condition (i) Identify project sites requiring easement access (VPMU/PVUDP) (ii) Identify title holders from Land Register (DOL) (iii) Meet with individual title holders to secure agreement to survey site and provide easement (DOL, VPMU/PVUDP) (iii) Correct title holders in DOL records (DOL) (iv) Undertake land survey (DOL, VPMU/PVUDP) (v) Prepare Grant of Easement (vi) Signing of Grant of Easement (vii) Forward signed easements to VPMU/MIPU (DOL) (viii) Draft RP disclosure (public consultation and posting on ADB website) (ix) ADB no-objection to RP Implementation Schedule Month 1 (May- December 2015) Months 2-6 (June to October 2015) Completed (14 May) Completed (21 May) 3 weeks (1-19 June) 1 week (30 June) 3 weeks (1-21 July) 1 week (22-30 July) 24 weeks 1 week (1-7July- December 2015) Aug December 2015) Month 8-9 (4 weeks) December January 2016) December

12 Draft Central Business District (Southern Section) Land Easement and Compensation Schedule Main Resettlement Plan Activities Implementation Schedule Month 8 (End January Award contract 2016) Update project community and leaseholders on construction Months (Febschedule March 2016) Month 10 (November Finalize updated RP and submit to ADB /February 2016) Mobilize Contractor Month 9 () Resettlement Plan Implementation Replacement of damaged structure from civil works During construction Payment of adjusted compensation, as required, for unforeseen Months (Feb Damages and losses 2016-Feb 2017) 11

13 I. Introduction 1. The Port Vila Urban Development Project (PVUDP) Project aims to improve drainage, roads, and sanitation systems in the greater Port Vila municipality and adjacent urban and peri-urban areas. The project will implement the recommendations of the drainage and sanitation master plan 4, which identified priority interventions for improved access and support to affordable, sustainable, and effective sanitation, roads, and storm water drainage services, contributing to climate-resilient urban development in and around Port Vila. 2. The Resettlement Plan (RP) for the Road and Drainage Subcomponent describes principles, entitlements, procedures, and implementation arrangements on land subject to construction activity under the Port Vila Urban Development Project (PVUDP). It is based on existing Government of Vanuatu Land Leases Act and other relevant legislation. It is focused on leasehold land in the central business district (CBD) and meets the requirements of the Safeguard Policy Statement of the Asian Development Bank (ADB). The Ministry of Finance and Economic Management (MFEM), the Executing Agency, and Ministry of Infrastructure and Public Utilities (MIPU), Implementing Agency, will lead the implementation of the RP. II. Project Description 3. The proposed project has five target outputs 5. This Resettlement Plan has been prepared for Output 1: The Government has improved the road network and drainage system in greater Port Vila. The road improvement will utilize existing road carriages. The improvement of the drainage system however will require (i) construction of new drains on ten (10) leasehold parcels to improve the deteriorating and inadequate drainage network in the CBD; and (ii) improvement of existing Public Access Areas (PAAs) such as footpaths, walkways and carparks to ensure safety and ease of access to establishments within the CBD. These existing PAAs have typically been built across the road boundary and lie partly on leasehold land. 4. The roads improvement will not require access to leasehold lands. The expansion of buried drainage however will require easements between 3 to 5 meters wide and up to approximately 72 meters in length. In addition, the improvement of PAAs will also require access to an average of 1 meter along the frontage of leasehold lands. In total, this subproject will require about 2,700 sq m of leasehold land for drainage easements and an estimated 3,500 m² leasehold land for the PAA improvement for which this RP has been prepared. 5. Each drainage culvert will be buried underground and upgraded or constructed at a height of about 1 meter in height and about 3 to 5 meters wide. The PAAs meanwhile will be expanded from 1.2 to 2 meters wide and leveled for improved access and safety particularly for people with special needs. Other infrastructure such as access roads to maintain these facilities from the main road will utilize existing government easement. Depending on the weather, the construction period is estimated to be about 24 months. Table 1 below provides key technical data on the road and drainage component. 4 Asian Development Bank (ADB) Technical Assistance to the Republic of Vanuatu for Preparing the Port Vila Urban Development Project. Manila. 5 Other project outputs include (ii) Government has improved the sanitation system in greater Port, (iii) Central area and settlement communities use improved hygiene facilities; (iv) Government agencies and community and user organizations have the capacity to effectively and efficiently manage sanitation, roads and drainage systems, and (v) Efficient project management services are provided. 12

14 Unit Road Drainage Table 1: Road and Drainage Technical Data Details Approximately 13 km Approximately 7 km Public access areas (pedestrian lanes/foothpaths) Type of project Source: PPTA Consultants Approx 3,500m² 177 leaseholders (from 127 leasehold lands in CBD and 50 outside CBD) Road, drainage, footpaths, walkways, car park improvement 6. The project will be implemented in stages, where the drainage subcomponent will be constructed first, followed by the road and the PAAs within the 24 months construction period. 7. The project will follow appropriate engineering design to minimize activity on leasehold land and to mitigate the resettlement impacts. The project will use existing road carriageways in upgrading the public road, utilize public access in construction activities including use of existing public lands for drainage location as much as possible, and limit PAA improvement up to an acceptable width to leaseholders. In addition, to reduce the impact on the local business community, the drainage and public access will be rebuilt within the road corridor as much as possible and easements and access to leasehold land will only be sought where essential for the purpose of addressing flooding and safety issues. III. Scope of Land Acquisition and Resettlement 8. The project does not involve physical displacement of people and/or destruction of physical structures. It will however need to access approximately 0.2 ha of leasehold lands for drainage improvement and 0.35 ha for public access improvement. The land will be required for construction or upgrading of nine main drainage outlets to drain storm water to the Port Vila waterfront to prevent flooding and the upgrading of existing public access areas that occupy about 3,500 sq m of leasehold lands. The road and drainage construction will utilize existing roads and existing easements where possible to minimize the requirement for grants of easement from leaseholders. In effect, while there are a large number of AP s, the overall impact on them will be minimal as the actual area of land which stands to be affected is approximately 3,500 sq. metres and when apportioned across the total number of AP s the impact is minimal. The sub-project will not require acquisition of land in order to construct the planned infrastructures. There will be voluntary consent provided by leaseholders in the subproject sites to create easements and to install and build drains and pavements. 9. The Table 2 below provides the breakdown of land requirement and number of affected persons (APs) for the project components: Sub-Project Sites Table 2: Scope of Easement Requirement Estimated Easement Requirement Current Land Use Leaseholders Number of APs 1. Road N/A Road N/A N/A 2. Drainage 0.2 ha Mostly vacant commercial land 6 companies 3 individuals 9 leaseholders 9 13

15 3. Public Access Areas Total N/A Footpaths, walkways, car parks 127 leaseholders (CBD) 50 leaseholders (outside CBD) 186 leaseholders (approximately) N/A Figure 1: Project Map IV. Socioeconomic Information and Profile A. Enumeration of Affected People 1. Drainage Easement 10. There are nine private leaseholders affected by the drainage easement along an estimated seven km of land along the road or underground within existing drainage towards the Fatumaru Bay. There are five company-owned, 1 church owned-land, and three individual-owned leaseholds. The five companies include prime properties along the waterfront including the soon-to-open Tana Russet mall, Chantilly s hotel, Fatumaru Lodge and a currently for sale vacant property facing Iririki Resort. The other properties include a rental business inland (Tru Thi Nga and Tru Thi Vinh) near the Vanuatu National Provident Fund building, a residential property along the water near Freswota towards the airport, and two rental properties inside the CBD (Fragephi Trust and Pacifica Ltd). Another property is owned a church group (Seventh Day Adventist). The proposed three to five-meter wide easements with varied lengths, are on vacant spaces under these properties to be built on existing smaller and older drainage pipes or outlets. 14

16 Table 3: Affected People and Businesses 6 Leaseholders (Businesses) Owner of Business Land Requirement With Structure on Land 1. North Vila No. 1 Limited Company (opposite Tana Russet Mall) 555 m² Vacant 2. South Pacific Equity Limited Company (Chantilly s) 150m² Vacant 3. Tru Thi Nga Individual Rental (Next to Tafea Guesthouse) 120m² business 4. Tru Thi Vinh Individual Rental (Next to Tafea Guesthouse) 120m² business 5. Crown Properties Limited Company (Australian Businessman) 210m² Vacant Individual 6. Hoang Vu Thi Phi (Homeowner) 250m² Driveway Company 7. Iona Limited (Fatumaru Lodge) 320m² Vacant Vacant 8. Fragephi Trust ( same as no.9) Company 120m² walkway Church 9. Seventh Day Adventist Mission 850 m² Vacant Total 2,695 m² Impacts (land, structure, crops, etc) Land teasement Land - easement Land - easement Land - easement Land - easement Land - easement Land - easement Land - easement Land - easement 11. Table 4 summarizes impact or loss by affected landholders. Vacant lands, driveways, and a few garden plants were identified as the main assets APs stand to lose through project construction. Although business owners do not want to reveal extent of land owned, it is estimated loss of land from the project site accounts for under 10 per cent of the leasehold land required by the project. Generally the total land owned by each affected leaseholder is much more through companies and trusts but not possible to ascertain being shareholders in various companies including those listed below. Table 4: Estimated Loss of Lands and Other Assets Leaseholders (Businesses) Loss of Land Estimated % of Other Affected (ha) Claimed Loss Assets Under 10% 1. North Vila No. 1 Limited 555 m² NIL Under 10% 2. South Pacific Equity Limited 150 m² NIL Under 10% 3. Tru Thi Nga 120 m² NIL Under 10% 4. Tru Thi Vinh 120 m² NIL Under 10% 5. Crown Properties Limited 210 m² NIL Under 10% 6. Hoang Vu Thi Phi 250 m² NIL Under 10% 7. Iona Limited 320 m² NIL Under 10% 8. Fragephi Trust 120 m² NIL 9. Seventh Day Adventist 850 m² Under 10% NIL Mission 6 Source: Ministry of Infrastructure and Utilities and Department of Lands 15

17 Total 2,695 m² 12. The land easement requirement and resettlement impacts of the project are not significant. Therefore, the project is classified as Category B according to the ADB's Safeguard Policy Statement (2009). 2. Public Access Areas (PAA) 13. PAAs are already existing public access areas and the project is designed to upgrade, rather than extend them to minimize negative impacts. In some instances there will be an increased use of leasehold land for improved public access. 14. There are an estimated 177 leaseholders, the majority of which are businesses and individual leaseholders whose lands are impacted by the project. They are mostly business people within the CBD district of different nationalities including ni-vanuatus, Asians, and Europeans. B. Socio-economic Profile of Neighboring Communities and APs Affected Persons 15. All the affected lands are government-owned lands leased to companies or individuals. Affected persons or businesses are mostly foreign-owned businesses or locallyowned businesses by naturalized ni-vanuatu business people. All leaseholders impacted by drainage easements were interviewed. 16. The following section summarizes the findings of the socio-economic survey of the 10 leaseholders as part of the RP preparation: 17. Livelihoods and Income: Initial investigation identified the affected drainage leaseholders as prominent and some of the largest business owners in the country. The public access leaseholders were also identified as mainly larger business owners in Port Vila These are typically foreign, naturalized and well-off residents. Business leaseholders include European, Asian and a few Ni-Vanuatu nationals. Some are second and third generation immigrants from France, Vietnam and China. 18. Education: As the majority of owners are foreigners or naturalized Ni-Vanuatu of foreign ethnicity, they have a secondary level international standard education or better. Many now have children with a tertiary standard education as they have invested in having their children educated overseas. The smaller retail businesses involve several generations with varying levels of education. 19. Access to Health Services: All owners have access to the Vanuatu health system and most have personal health insurance policies that provide immediate evacuation overseas for health reasons. All owners fly frequently to New Caledonia, Fiji, or further afield to access health services when required. 20. Energy Use: All properties and their owners are connected to the local electricity grid. 21. Access to Road and Transportation: These properties front onto roads that will be upgraded during the course of the project. Some have multiple properties that will benefit directly from the road and drainage improvement. 16

18 22. Access to Market and Income: The leaseholders/landowners range from accountants, resort operators (Chantilly s Hotel and Fatumaru Lodge, boutique resorts in Port Vila, and property developers, to smaller retail businesses (New Look) owned by immigrant business people (French, Vietnamese, Australians, NZ, Chinese). All leaseholders/landowners have multiple business activities thus are not considered vulnerable and poor under the ADB Social Safeguards Policy (2009) in terms of income and ownership of assets. 23. Due to mostly smaller size individual business frontage required by the project to upgrade footpaths, walkways and carparks to improve public access within the CBD, the government (MOL) decided that it will not require securing legal easements over these areas unlike in the case of the drainage easements for nine drainage points within and outside the CBD. The government is willing to take the risk of upgrading privately owned land (under long term government leaseholds) commonly located in shop and office frontage along the CBD. The government will only require leaseholders to provide access consent prior to upgrading of these public access areas. Selected public access areas for upgrading, where leaseholders refuse to provide consent, will be bypassed by the project. C. Likely Impacts of Land Acquisition on Affected People and Businesses 24. Extent of loss: There is no expected risk of landlessness, and/or loss of major income source. The APs/ABs will instead financially benefit from drainage improvement leading to reduced cost of damage to properties, goods and loss of customers, particularly during cyclone season as well as potential increase in property value due to the overall road and drainage improvements. In addition, the APs/ABs will also benefit from improved aesthetics, safety and decreased third party insurance liability by granting easement access to the road, drainage and pedestrian improvement project. The sub-project will not require acquisition of land in order to construct the planned infrastructures. There will be voluntary consent provided by leaseholders in the sub-project sites to create easements and to install and build drains and pavements. 25. Level of support for the project. All drainage leaseholders/landowners interviewed indicated a strong level of support for the project, while wanting to maintain their rights in relation to their land. Where initial drainage designs were rejected, they offered viable solutions to enable the project to succeed. There is a high level of recognition that this project will benefit their business, either directly through increased tourism or indirectly through better roads, improved business conditions generally and increased land values over time. 26. Willingness to grant easement access to government project: Consultations with representatives of the 9 private drainage leaseholders to provide formal easements have indicated strong support for the project. Similarly, consent for the project to upgrade public access from over 100 PAA leaseholders were also expected since there will be no requirement to provide formal easements and the project will upgrade existing de-facto public access areas. Since these are business people, they have realized the potential longterm benefits of the project improvement to their businesses and/or investment. 27. There are no expected negative impacts on the social structure of the APs/ABs and the communities around the project site, since granting of easement for the drainage and pedestrian lanes will not involve physical or economic displacement. In addition, there are no expected adverse impacts on cultural identities or heritage of the affected companies and individual businesses resulting from granting of public easement. 17

19 D. Indigenous Peoples 28. The local people in the area do not meet the ADB criteria of distinct, vulnerable social and cultural group possessing the following characteristics in varying degrees who are not discriminated upon by other groups due to their language, skin color and education level thus requiring protection and special attention from the project: (i) Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) A distinct language, often different from the official language of the country or region. E. Gender Impacts, Needs, Priorities of Women APs 29. Gender issues among APs or ABs are not expected to be prominent in this project. Improving these infrastructures will help improved business opportunities particularly for women business owners. In addition, women are also the predominant group responsible for shopping for the family and this project will improve the pedestrian access to the city particularly for those with children in prams and those with limited mobility. Safe pedestrian crossings will improve safety for all pedestrians particularly those with children. A. Stakeholders V. Information Disclosure, Consultations, and Participation 30. There are three categories of stakeholders under this project: (i) government, (ii) private sector including leaseholders, sub-lease holders and tenants and (iii) the public including business customers and road users. The government stakeholders include the national government, Ministry of Finance, Port Vila Municipal Government, Prime Minister s Office, Ministry of Lands, Ministry of Infrastructure and Public Utilities, Attorney General s Office, Vanuatu Project Management Unit, and Tourism Office. The private sector includes business owners such as members of the Chamber of Commerce, insurance companies and brokers, and real estate companies, and affected leaseholders. The public stakeholders include the shopping public, bus-owners, private vehicle owners, and the public transport service providers including the bus operators association and taxi operators (Port Vila Efate Land Transport Association PVELTA). 31. Other stakeholders and their interests are: Communities around the CBD - There are 31 communities/settlements around the Port Vila CBD. The majority of these communities rely on employment from businesses within the CBD as well as customers of the numerous restaurants, retail shops, banks and other service providers in the area. Their interests include 18

20 ease of access and safety in crossing and walking along the public areas of the CBD. Civil Society Organizations such as Vanuatu Environment Science Society (VESS), Vanuatu NGOs (VANGO), Wan Smol Bag have demonstrated interest to be consulted and participate in the project and its environmental aspects. 19

21 Consultations Held B. Consultation with APs and Stakeholders 32. Consultations started with a joint presentation by the MOL and the PVMU/PVUDP Team with the initial 12 affected owners of drainage easements on 26 June These were reduced to 10 leaseholders after the first group consultation. (Then to nine after changes in technical design towards December 2015.) Only half were able to attended thus individual consultations, from 28 June until end of July, were held with the absent leaseholders away at the time of the group consultation. Individual consultants with remaining leaseholders are continuing using the following methods: (i) interviews of APs/leaseholders and inventory of losses, if possible; (ii) public meetings; (iii) meeting with sublease holders and tenants; and, (iv) focus group discussions with civil society to start by end of July including Chamber of Commerce, women and youth organizations. A list of consultation events including their dates and participants is attached. C. Summary of Consultation Results 33. APs/ABs: Subject to modifications of some site locations, initial consultations indicated willingness by most leaseholders to provide drainage easement for the drainage improvement project. Currently, consent access forms were provided to the leaseholders for signing before end of July. The PAAs leaseholders, excluding those that also have drainage and PAAs passing through their land, will also be consulted using a similar process used for the drainage easement to secure an easement consent for the drainage and PAAs. 34. Women and Youth: Women and youth were well informed of the project scope through consultative awareness programs; as well great care was taken to ensure safeguards measures applied. Consultation with women and youth was done extensively during the early design stage to ensure a common understanding and awareness of the project that roads and drainage were to be improved and upgraded. Consequently, there is a general overall expectation by not only women and youth, but the public at large, of better roads and improved drainages to be used by the population very soon after project implementation. 35. Civil Society: Civil society organizations, including members of the Chamber of Commerce and NGOs and other important stakeholders also participated in the consultation processes initially and throughout the design phase. Civil Society Organizations and project stakeholders were made aware of project outputs particularly Output 1 to improve roads and drainages and as a result have increased expectations, and willingness to grant easement, of an improved roads and drainage system that will be of great benefit to them. C. Disclosure of Resettlement Plan 36. Due to the preference for privacy of the affected businesses, groups and individuals, MIPU through VPMU/PVUDP have disclosed the content of the draft RP particularly the entitlement and time table during individual meetings between August- November The draft and final RP will also be disclosed on the ADB website upon submission by MIPU/VPMU to ADB in December

22 D. Arrangements for Consultation during Updating and Implementing RP 37. MIPU have organized consultations with affected leaseholders, sub-leaseholders, business leaders, business tenants, or their official representatives, and all other interested members of the community. Separate meetings have been, and will continuously be organized, with affected leaseholders and relevant stakeholders to ensure discussion of their potential concerns and at that stage. MIPU will also present the scope of project works. In the presence of the leaseholders, MIPU, through VPMU/PVUDP and DOL have identified the affected leasehold lands; the boundaries of parcels have been marked and recorded. 38. MIPU have also informed affected leaseholders about the policies and procedures regarding entitlements for improvements on leasehold land, if applicable (ref. Appendix 2). Procedures for grievance redress have also been discussed. In addition, MIPU have informed the leaseholders when and how compensation, if applicable, for affected structures such as driveways will be replaced. VI. Grievance Redress Mechanisms 39. Under the PVUDP, a Grievance Redress Mechanism (GRM) has been established and currently applicable. During implementation, the VPMU and its Contractor will have a designated staff member responsible for implementing the GRM. The VPMU s lead will be the grievance focal point, and receive and address project related concerns, via the designated staff member. Concerns will be resolved first by the Project Manager on-site, followed by the VPMU, and the responsible government authorities. 40. During the construction period the contractor will be a key participant in the grievance redress process. 41. Any complaint will be recorded and investigated by the VPMU s staff working with the Design, Supervision and Capacity Development (DSCD) Consultant and the contractor (as appropriate). A complaints register will be maintained as a Help Desk, and will show the details and nature of the complaint, the complainant s name, the date and actions taken as a result of the investigation. It will also cross-reference any non-compliance report and/or corrective action report or other relevant documentation filed under that complaint. 42. When construction starts, a sign will be erected at all sites providing the public with updated project information and summarizing the grievance redress mechanism process including contact person details at the VPMU. All corrective actions and complaints responses carried out on site will be reported back to the VPMU lead. The VPMU will include the complaints register and corrective actions/responses in its progress reports to the ADB. 43. Throughout this process, MIPU will always be available to hear public complaints and provide advice if the complainant feels that VPMU responses are not satisfactory. 44. On receipt of a complaint in any form (in person, telephone, written) the VPMU complaints officer will log the details in a complaints register. PMU will forward complaint to the project director and executing agency head within 48 hours. The DSCD will respond to the PMU within 1 week with advice on corrective actions to be taken. VPMU will review and find solution to the problem in consultation with village/island/state or traditional chief and relevant local agencies. Then VPMU will report back to the affected persons within another 7 days. If the complainant is dissatisfied with the outcome, or has not received advice in the allotted time period, he or she can take grievance to the national government. MIPU will refer matter to the State Law Office for review. The national/state authority will review the 21

23 case and report back to the VPMU who will discuss answers with the complainant about outcome. If unresolved, or if at any time the complainant is not satisfied, he or she can take the matter through the courts. Both successfully addressed complaints and unresolved issues will be reported to the ADB by the VPMU. Table 5: Procedures for Resolving Grievances Step Process Duration 1 Affected Person (AP)/ takes grievance to the Any time Vanuatu Project Management Unit (PMU)/DSCD /Contractor 2 VPMU reviews issue, and in consultation with 1 week DSCD and contractor (if appropriate), then records a solution to the problem. 3 VPMU reports back to AP and gets clearance from complainant. 1 week If unresolved 4 AP take grievance to relevant government agency Decision within 2 weeks for resolution (Director General of the Ministry of Infrastructure and Public Utilities or MIPU) 5 AP refers matter to Public Solicitor s Office 2 weeks 6 National agency refers to an internal committee 4 weeks 7 National agency through reports back to relevant government agency/ap 1 week If unresolved or if at any stage and AP is not satisfied with progress AP can take the matter to appropriate state or national As per judicial system court. VII. Legal Framework A. Policy and Legal Framework for Land Acquisition and Resettlement 45. The policy framework for the Project is based on the ADB s safeguard requirements on involuntary resettlement as embedded in the Safeguards Policy Statement (2009), the Constitution of Vanuatu and the laws of Vanuatu. Where differences exist between the local laws and ADB requirements, the resettlement policy will be resolved in favor of the latter. B. Legal Instruments in Land Acquisition and Resettlement in Vanuatu 46. Land acquisition, resettlement and associated land issues are recognized by the Constitution and more than 10 laws (or Acts). This section presents a brief overview of the salient national legal instruments pertaining to securing drainage and PAA easement through negotiated agreement. (i) Constitution of Vanuatu 47. The Constitution of the Republic of Vanuatu came into being on 30 July The Constitution, as the supreme Law of Vanuatu, contains two relevant sections which have relation to land acquisition and resettlement. Chapter 5, Articles 29 to 32, of the Constitution refers to the National Council of Chiefs. Of relevance is the Article 30 which recognizes the National Council of Chiefs membership having the competence to discuss, and may be consulted on, any issue related to customs, culture and its preservation in any matter, as required by the National Government. 22

24 48. Another chapter, considering the traditional ties between Vanuatu nationals and the land, Chapter 12 of the Constitution of the Republic of Vanuatu is devoted to land. The majority of discussions related to land have centered on Articles 30 (in Chapter 5) and Articles 73, 74, 75 and 76 of Chapter 12. However, of relevance to Land Acquisition and Resettlement are all nine articles (Article 73 to 81), but dependent upon the situation. This includes that all land is owned by its traditional, customary owners; parliament prescribes the criteria for compensation payment for land; the Government may own and acquire land for State interest and may redistribute land away from traditional owners, in such cases as informal settlements and relocating of residents from other islands; and disputes in land ownership. (ii) Land Leases Act (CAP 163) The Act has 23 sections that discuss the Land Records Office and laws regarding leases including its definition, terms, types, registration and obligations of lessors and lessees. Of relevance to the project are the discussion on requirement to provide rights of way, rights of water, rights to sites for government infrastructure such as navigational aids and easements. 50. The Act also discusses variation of agreements and condition of lease that the MOL intends to use in this project. This is where a change of lease agreement using a prescribed form under this Act maybe executed by both lessor and lessee prior to the expiration of the lease. A lessor also may sublease the land for the remaining life of the lease. The Act also includes the registration of caution or restrictions, including its definition such as mortgage or claims arising from bankruptcy, its placement and removal on a leased property. The leaseholder may also grant easement over his land. Fees imposed on subleasing of leaseholds were also provided in the Act. 51. In relation to the project, where underground drains are required through leasehold land, the project is negotiating easements of typically five meters wide over the drain corridor to enable construction and secure access for future maintenance. These easements will be established using the processes set out in the Land Leases Act. The Land Leases Act (CAP163) makes provision for the establishment of easements over leasehold land as above. Section 67 (1) of the act states that: The proprietor of a registered lease may, by an instrument in the prescribed form, grant an easement over the land comprised in his lease to the lessee of other land for the benefit of that other land. 52. However, it must be noted that this is a voluntary process undertaken by the proprietor of a registered lease (also called the lessee) and an easement cannot be forcefully established by government. 53. There are also a number of locations where existing public carparks are situated within areas of leasehold land. Where it is considered important to retain these carparks in the long term, attempts will be made to negotiate easements over the carpark area with the leaseholder and the carpark areas upgraded under the project. The provisions of the Land Leases Act (CAP163) will also be used in these instances

25 54. As discussed above, the MIPU s resettlement commitments (drainage easements and Access Consents over Public Access Areas (PAAs) are guided by the Government of Vanuatu and ADB principles on land acquisition, compensation and resettlement. These principles include: (i) Land acquisition and resettlement will be minimized through careful engineering design. In particular, there will be no displacement of people. (ii) APs will be consulted during project cycle. RP will be prepared and updated in participation of APs. Effective mechanisms will be established for hearing and resolving grievances. (iii) APs will receive compensation at replacement cost for their loss of land so that they will be as well off without the project. (iv) Compensations will be fully paid to APs prior to the beginning of civil works in the subproject site. (v) Absence of formal title will not be a bar to compensation and assistance and particular attention will be paid to vulnerable groups. (vi) Land acquisition and resettlement will be conceived as part of the project and related costs will be included in and financed out of the project cost. (vii) The resettlement impacts including unforeseen losses and damages that may occur during civil works will be monitored and remedial steps taken as required. 55. Throughout this process, MIPU will always be available to hear public complaints and provide advice if the complainant feels that VPMU responses are not satisfactory. 56. In line with existing MOL procedures guided by the Lands Leases Act (CAP 163), the Government of Vanuatu through MOL, has developed the Process for the Establishment of Drainage and Public Access Easements Through Leased Land (the Easement Process) for the Project (Appendix 2). The Process describes detailed process to secure drainage and public access agreement for the project. These include: (i) identification of correct leaseholders, (ii) obtaining consent to conduct land survey, (iii) negotiation with leaseholders to provide easement, (iv) dispute resolution process, if applicable, and (iv) outline of government s option to re-design in case of a leaseholder s refusal to grant easement. 57. The Easement Process was prepared to guide the granting of public easement by current government leaseholders for the required project site, and it outlines the process particularly on facilitation of dispute resolution and, if applicable, negotiation of compensation with leaseholders. C. ADB s Policy on Involuntary Resettlement 58. The ADB Safeguards Policy Statement (2009) requires ADB-assisted projects to (i) avoid resettlement impacts wherever possible; ii) minimize impacts by exploring project design alternatives; iii) enhance, or at least restore the livelihoods of all DPs in real terms relative to pre-project levels; and iv) improve the standards of living of the affected poor and other vulnerable. It covers both economic and physical displacement. 59. The key principles of the ADB safeguards policy on resettlement are as follows: Screen early the projects resettlement impacts and risks; Carry out meaningful consultations with participation of affected persons (APs)/Displaced persons (DPs), inform all APs/DPs of their entitlements and resettlement options. Pay particular attention to the needs of vulnerable groups; Establish a grievance redress mechanism; 24