Private Sector Development Capacity Building Project RESETTLEMENT POLICY FRAMEWORK REVISED DRAFT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Private Sector Development Capacity Building Project RESETTLEMENT POLICY FRAMEWORK Private Sector Development Capacity Building Project Page 1 of 88

2 Table of Contents ABBREVIATIONS AND ACRONYMS... 3 PART I: BASIC INFORMATION... 4 PART II: OBJECTIVES... 6 PART III: PROJECT DESCRIPTION AND RATIONALE FOR RPF... 7 PART IV: LEGAL AND INSTITUTIONAL FRAMEWORK i) POLITICAL ECONOMY AND GOVERNANCE IN ETHIOPIA ii) PROPERTY AND LAND RIGHTS IN ETHIOPIA iii) ACQUISITION AND VALUATION OF LAND AND OTHER ASSETS iv) ENTITLEMENTS AND COMPENSATION v) DISPUTE RESOLUTION AND GRIEVANCE MECHANISMS vi) COMPARISON TO WORLD BANK OP Table I: Comparison of Ethiopian and World Bank Policies on Resettlement and Compensation PART V: COMPENSATION FOR LAND AND OTHER ASSETS Table II: Entitlement Matrix PART VI: IMPLEMENTATION SCHEDULE AND COSTS Table III: Indicative Outline of a RAP Budget PART VII: PUBLIC CONSULTATION AND DISCLOSURE PLAN PART VIII: MONITORING AND EVALUATION OF IMPACTS Table IV: Indicators of RAP Impacts ANNEX 1: World Bank Resettlement Policy Framework (RPF) ANNEX 2: Annotated Outline for Preparing a Resettlement Action Plan (RAP) ANNEX 3: Sample Grievance and Resolution Form ANNEX 4: Sample Table of Contents for Consultation Reports ANNEX 5: Glossary of Terms ANNEX 6: Relevant Laws ANNEX 7: List of 28 State Owned Entreprises designated for Environmental and Social Management Plan (ESMP) ANNEX 8: List of Stakeholders Involved in the RPF Consultation Process Page 2 of 88

3 ABBREVIATIONS AND ACRONYMS ADB BP EA EAA EAPM EA/TRC EIS EMP EPA ESD GEF IDA kv LI M&E MEP MOE NCC NGO OP OPN PAP PCDP PCR PER PIU PPAH RAP ROW RPF SEA TOR African Development Bank Bank Procedures Environmental Assessment Environmental Assessment and Audit Department Environmental Assessment Procedures Manual Environmental Assessment Technical Review Committee Environmental Impact Statement Environmental Management Plan Ethiopia Environmental Protection Agency Department of Environment and Sustainable Development Global Environment Facility International Development Association Kilovolt Legislative Instrument Monitoring and Evaluation Monitoring and Evaluation Plan Ministry of Energy National Commission on Culture Nongovernmental organization Operational Policy Operational Policy Note Project Affected Persons Public Consultation and Disclosure Procedures Physical Cultural Resources Preliminary Environmental Reports Project Implementing Unit Pollution Prevention and Abatement Handbook Resettlement Action Plan Right of Way Resettlement Policy Framework Strategic Environmental Assessment Terms of Reference Page 3 of 88

4 PART I: BASIC INFORMATION 1. Country and Project Name: Ethiopia: Private Sector Development Capacity Building Project Proposed Additional Financing Operation 2. Project Development Objectives: The project development objective for the Additional Financing (AF) operation is to enhance the competitiveness and growth of the light manufacturing industries in the Ethiopian economy; and accelerate the process of divestiture of public enterprises. This goal will be achieved by (1) bridging the financing gap for the implementation of its Privatization Program of commercial public sector enterprises; and (2) augmenting the resources for the Ethiopian Competitiveness Facility (ECF) that administers matching grants (MG) for exporting firms; and chambers of commerce and sectoral associations. In addition, the AF proposes (i) to extend the ECF grants to enterprises in light manufacturing industries that also cater to domestic markets on a competitive basis, for products that would otherwise be imported; (ii) to provide support to the recently established Ethiopian Public-Private Consultative Forum (EPPCF) Secretariat that aims to address sector-specific and cross-cutting policy and implementation matters; (iii) to support MoI s efforts to develop a Special Economic Zone Strategy, and framework for Ethiopia; and (iv) to strengthen the existing Project Management and ECF units for successful implementation of the program. Responsible Government/Country Agency for RPF Implementation: FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA Ministry of Finance and Economic Development Responsible Agency: Ministry of Industry/ Privatization and Public Enterprise Supervising Agency (PPESA) Total Project Cost (USD million): US$15 million IDA/IBRD (USD million): US$15 million Government (USD million): Other-Co-financing (USD million): Country: Ethiopia Country Director: Kenichi Ohashi Project ID: P Social Safeguards Specialist: Yasmin Tayyab Task Team Leader:Asya Akhlaque Environment Category: B Page 4 of 88

5 Year of project appraisal: 2011 Year of project closing: 2013 Safeguard policies triggered? Applicable Environmental Assessment (OP/BP 4.01) [ X ] Yes [ ] No Natural Habitats (OP/GP 4.04) [ ] Yes [ ] No Forestry (OP 4.36) [ ] Yes [ ] No Pest Management (OP 4.09) [ ] Yes [ ] No Cultural Property (OP 4.11) [ ] Yes [ ] No Indigenous Peoples (OP 4.10) [ ] Yes [ ] No Involuntary Resettlement (OP 4.12) [ X ] Yes [ ] No Safety of Dams (OP/BP 4.37) [ ] Yes [ ] No Projects in Disputed Areas (OP/BP 7.60) [ ] Yes [ ] No Projects on International Waterways (OP/BP 7.50) [ ] Yes [ ] No Page 5 of 88

6 PART II: OBJECTIVES The objectives of the Resettlement Policy Framework (RPF) are to: Establish the Private Sector Development Capacity Building project resettlement and compensation principles and implementation arrangements; Describe the legal and institutional framework underlying Ethiopian approaches for resettlement, compensation and rehabilitation; Define the eligibility criteria for identification of project affected persons (PAPs) and entitlements; Describe the consultation procedures and participatory approaches involving PAPs and other key stakeholders; and Provide procedures for filing grievances and resolving disputes. The RPF will apply to the privatisation of State Owned Entreprises. The list of State Owned Entreprises concerned is provided in Annex 7. The procedures will be carried out throughout preparation and implementation, and impacts of any potential resettlement will be included in monitoring and evaluation (M&E). When a Resettlement Action Plan (RAP) is required, it will be prepared in accordance with guidance provided in this RPF, including Detailed Measurement Surveys, Identification (Census) of PAPs/displaced persons, and Public Consultation and Disclosure Procedures (PCDP). The RPF follows the guidance provided in the World Bank Operational Policy on Involuntary Resettlement (OP4.12), as described in Annex 1. The RPF ensures that any possible adverse impacts of proposed project activities are addressed through appropriate mitigation measures, in particular, against potential impoverishment risks. These risks can be minimized by: Avoiding displacement of people without a well designed compensation and relocation process; Minimizing the number of PAPs, to the extent possible; Compensating for losses incurred and displaced incomes and livelihoods; and Ensuring resettlement assistance or rehabilitation, as needed, to address impacts on PAPs livelihoods and their well being. Page 6 of 88

7 PART III: PROJECT DESCRIPTION AND RATIONALE FOR RPF Description of project activities where the RPF will be applied: The privatisation of State Owned Enterprises (SOEs) was initiated in the early 1990 s after Ethiopia instituted nation-wide economic reform. A liberalization policy, implemented to expand the country s market economy, was supported by the creation in 2004 of the Privatization and Public Enterprises Supervising Agency (PPESA) under the Ministry of Trade and Industry (MoTI). Pursuant to Article 6 of Ethiopia Proclamation No. 412/2004, PPESA was mandated to transfer selected state-owned enterprises to private ownership. As part of this process, a World Bank-sponsored environmental audit was undertaken for 94 SOE s covering a full range of industrial sectors across Ethiopia, including textiles, tanneries, cement, pharmaceutical, breweries, food processing, construction. This audit program was implemented by an external consulting company (Tecsult International Limited) who provided a combined audit team of international and national environmental experts. Full and partial audits, with primary emphasis put on key issues previously identified in a 2004 pre-audit report (by Sood, another consultant), were undertaken in Based upon site visits, selected local interviews and a review of relevant documentation, audit findings were developed for each facility. Suggested Environmental mitigation measures and/or corrective actions were provided where appropriate. In particular, detail was provided for each major finding that involved legal non-compliance or a major risk to the Environment, Health or Safety - for either the workers or the community. Among the 96 audited SOE s, 28 were identified for further review of potential environmental and social liabilities that present significant risks for any new private owners. These 28 sites covered various sectors: agriculture, construction, chemicals, textiles, food, beverage, mining and minerals. To attract private investors or buyers of the proposed facilities, an Environmental Management Plan (EMP) was developed by PPESA, with the assistance of Tecsult International, based upon the recommendations of the environmental audits. PPESA and Tecsult (using local independent social survey crews) also determined whether privatisation of each of these SOE s would trigger the World Bank OP 4.12 Involuntary Resettlement Policy. This was based on the following: (1) A rapid survey of 28 SOEs to determine if families, workers or other people are residing, or using land/assets, or have access to such land/assets, or have income sources or means of livelihood within the limits of the properties of each of these SOEs. This covered both officially recognized and informal land-uses. (2) An estimate of the approximate number of people who are in this situation ( Project Affected People ) and summary of any key social issues. The World Bank OP 4.12 Involuntary Resettlement Policy is triggered in full either because more than 200 persons need to be resettled or because there will be loss of assets and/or means of livelihood. Preliminary results indicate that this applies to all but 6 entreprises. During and after the process of the privatization, there is the possibility in 22 SOE s that people s residence or land-use - which can include both officially recognized and informal values - will be diminished. It is in this context that a Resettlement Policy Framework (RPF) is required for the affected people, as per the guidelines of OP Page 7 of 88

8 Code Private Sector Development Capacity Building Project Note that, among the 28 SOE s, examples of recent or ongoing privatization were reported by surveyors (Table 2). Table 2: SOE Privatization already occurring, as observed by the Survey Team Site Location Comments A19 A21 A23 Middle-Awash Agricultural Dev t Enterprise Fish Production & Marketing Ent. Upper Awash Agro- Industry Enterprise Afar Zeway & Langano SNNP Addis Ababa Amibara Abaya Some of the farms were privatized (not surveyed because there were new owners and no entity to be approached for a survey, e.g, Gewane, Dofen-Bolamo. Privatized around 2008 Bahir Dar Lake Tana Privately owned cafeteria Oromia One farm had been privatized namely Tibila Land acquisition and resettlement impacts [Describe the activities that may require land take or acquiring land and other assets; relocation or displacement of persons occupying or using these lands and other assets]: As of January 28 th 2011, all 28 sites were visited by a social survey crew. Based on initial key information phoned in to the survey coordinator, the following initial high-level conclusions can be drawn regarding the order of magnitude of land acquisition and resettlement impacts: In 6 SOEs, it was determined that no people were potentially affected by The Project in 6 sites. Based on information received and analyzed to date, World Bank OP 4.12 Involuntary Resettlement Policy may not be triggered. A resettlement plan may not be required. In 10 other SOEs, between 1 and 200 people could be affected by the Project in 4 - which triggers the World Bank OP 4.12 Involuntary Resettlement Policy in each case. A summary or full resettlement plan may be required. In 12 other SOEs, more than 200 People are affected by The Project in 10, which also triggers the World Bank OP 4.12 Involuntary Resettlement Policy. A full resettlement plan may be required. In summary, a total of 22 SOEs trigger World Bank OP 4.12 Involuntary Resettlement Policy. Further detail is provided in Table 1 (below). Page 8 of 88

9 Code Zero (0) Less than 200 Over 200 Dwellings/ Houses Crops Grazing Trees Other natural resources Public infrastructures Private infrastructures Private Sector Development Capacity Building Project Table 1: SUMMARY OF SOE SURVEY RESULTS - as of Jan. 28, 2011 Number of People affected by the Project How people are affected Site Location A1 Awash Melkassa Aluminum Sulfate & Sulfuric Acid Adama Awash Melkassa X A10 Agricultural Equipment & Technical Service Sh. Co. Addis Ababa Addis Ababa X X A11 Abobo Agricultural Deve t Enterprise Gambela Gambela X X X X X x A12 Coffee Processing and Warehouse Enterprise Addis Ababa X A13 Bale Agricultural Dev`t Ent Bale Robe X X X X A14 Agricultural Input Supply Enterprise Addis Ababa X X A15 Coffee Plantation and Dev t Enterprise Oromia, Gambela & SNNP X X X X X X X X A16 Arsi Agricultural Dev t Enterprise Arsi Assela x x x x x x Page 9 of 88

10 A17 Awassa Agricultural Dev t Enterprise SNNP Hawassa X X X X X X A18 Ethiopian Fruits and Vegetables Marketing Sh.Co. Addis Ababa X X A19 Middle-Awash Agricultural Dev t Enterprise Afar Amibara X X X X X A2 Adami Tulu Pesticide Processing Sh. Co. Zeway Adamitulu X A20 Semen-Omo Agricultural Dev t Enterprise SNNP Arbaminch X X X X X X X A21 Fish Production & Marketing Ent. 1 Zeway & Langano X SNNP Abaya X X Addis Ababa X X A22 Natural Gum Production & Marketing Ent. Nazareth X Bahir Dar Lake Tana X X X X A23 Upper Awash Agro- Industry Enterprise Afar & Oromia X X X X X X X A3 Caustic Soda Sh. Co. Zeway B24 Assela Malt Factory Arsi Assela X B25 Bedele Brewery Sh. Co. Bedele X B26 Harrar Brewery Sh.Co. Harrar X X B4 Adola Gold Development Enterprise Borena Oddo Shakisso X X X X X X X B5 Ethiopia Mineral Development Sh. Co. SNNP Kentiticha X X X X X C27 Tabor Ceramics Sh. Co. SNNP Hawassa X C6 Awassa Textile Sh. Co SNNP Hawassa X X X X X 1 A21 - Fish Production & Marketing Ent.) had 4 locations far from each other, including 2 where the local survey team indicated that no people were affected by the project. For the purpose of assessing the applicability of the World Bank OP 4.12 Involuntary Resettlement Policy, the A21 sites were considered as a single enterprise. As such, none of its different locations are tabulated among the sites having no people affected by the Project. Page 10 of 88

11 C7 Bahir Dar Textile Sh. Co Bahir Dar X X X X C8 Combolcha Textile Sh. Co Kombolcha X C9 Arbaminch Textile Sh. Co SNNP Arbamich X X X X X D28 Hamaressa Edible Oil Sh. Co. Harrar X X Page 11 of 88

12 Consultation Processes The survey results were not based on a census and should be considered as an approximation. The survey team did not actually see or count all people affected. The study relied instead on stakeholder consultation (i.e. interviews with key contacts) and observation by research team. This included representatives of each of the 28 SOEs and in one or two other sites members of the local community, thus became the basis for preparation of the RPF. The results of the social audit were also discussed with PPESA. Refer to Annex 8 for a detailed list of stakeholders consulted. A more detailed summary of key issues for each SOE surveyed is presented below. Summary of Social Audit Findings of 28 SOE (January 2011) CHEMICAL SECTOR Adami Tulu Pesticide Processing Sh. Co This SOE is located in Adami Tulu Liyu Kebele 01, Batu Town, Adami Tulu Jido Kombolcha Woreda, East Shoa Zone of Oromia Regional State. It has a total area of 131,000 square meters. The social audit findings are summarized as follows: 1. No legal or illegal inhabitant within the demarcated boundaries of the company. 2. Eighty-four employees of the company run a dairy farm (14 milk-cows and 10 calves at the time of the visit) on site under a Micro and Small Enterprises scheme. 3. Two hectares of land cultivated to grow maize and soybean for cattle feed. 4. The dairy farm cows and calves graze within the demarcated boundaries of the company. 5. No public or private infrastructure on site. Caustic Soda Sh. Co It is located in Kebele 01, Batu Town, Adami Tulu Jido Kombolcha Woreda, East Shoa Zone, Oromia. It has a total area of 262,300 square meters. The social audit findings are summarized as follows: 1. No illegal inhabitant within the demarcated boundaries of the company. 2. At the time of the social audit, seven out of twelve staff residential houses are occupied by top management and Dept. heads of the factory. 3. Some of the management staff who reside in the company houses grow small garden (fruits, vegetables and crops such as maize). 4. It was reported some low-paid employees (e.g., guards) collect firewood from within the boundaries of the company. Awash Melkassa Aluminum Sulfate and Sulfuric Acid It is located in Awash Melkassa village 115 km to the South East of Addis Ababa, Oromia. It has a total area of 15 hectares. Briefly, the social audit can be summarized as follows: Page 12 of 88

13 1. No legal or illegal inhabitant on the factory site except two key persons for the factory who reside in houses provided by the factory. 2. No private infrastructure or dwelling on the site. 3. About 320 households of Awash Melkassa village benefit from water wells and a health center of the factory. Page 13 of 88

14 MINING AND MINERALS SECTOR Adola Gold Enterprise It is located 525 km to the South East of Addis Ababa in Borana Zone of the Oromia National Regional State. It covers an area of 71km 2. The major observations of the social audit as follows: 1. There are about 900 households living illegally on the site designated for the production of gold. 2. They use the area both for farming and grazing. The farming activity is limited and is used as a cover for mining gold. 3. The 900 households are spread over three different locations usually in temporary plastic houses. 4. There is an infrastructure for the supply of water and electricity on the site. Ethiopian Mineral Development Share Company The Ethiopian Mineral Development SC has two sites in Borana Zone of Oromia, one in Mea Boku (Boanbua Wuha) and another in Kenticha. The one at Mea Boku produces kaolin used in the production of ceramic tiles, while the other one produces tantalum. 1. Kenticha is located 550 km away from Addis Ababa. It has a total area of 5.90 km 2. Basically no encroachers except that some young persons occasionally engage in mining of tantalum owing to the lucrative income that it could bring. The public infrastructures that inhabitants of the surrounding villages benefit from are a clinic, a primary school, an ambulance service and the supply of water and electricity. 2. Mea Boku is located 420 km to the South East of Addis Ababa. The mining area covers 4.50 km 2. Farmers from the surrounding villages, (about 50 households) use the farming area for crop production and grazing. The public infrastructures that inhabitants of the surrounding villages benefit from include a clinic and an ambulance service during emergency. TEXTILES SECTOR Kombolcha Textile Sh. Co The Company, with a total area of 436,000m 2, is located in Kombolcha 04 Kebele, Kombolcha Woreda, South Wollo Zone, Amhara Regional State. The social audit of the factory can be summarized as follows: 1. The factory has 1141 permanent and 80 contract workers, and 467 daily laborers. 2. There was not any illegal inhabitant in the demarcated boundaries of the factory. 3. There were legal inhabitants in the factory camp site and they are all factory workers residing in the houses provided by the company. 4. There was not any activity like planting fruit tree, breeding milk-cows and gardening on site. Page 14 of 88

15 5. The factory has a cafeteria and shop which provide services to its employees and the surrounding community. 6. No private infrastructures on site. 7. The factory has supported the neighboring kebeles in building a small (mini) clinic and small bridge. Bahir Dar Textile Sh. Co Bahir Dar Textile SC is located in Bahir Dar town, the capital of Amhara Regional State. The Company has 187,908 square meters of land. 1. There are 63 houses built and provided by the Company to its employees. Most of these households have their own little cultivation where they produce varieties of vegetables. The sum of these cultivated areas may be about half a hectare. 2. A variety of trees are grown on the site for shade, beautification as well as for fruits. 3. There is no natural resource found (so on far) on the site. 4. There is one cafeteria with all its facilities, including swimming pool, which is open to the public. 5. There is no private infrastructure within the boundaries of the company. Arbaminch Textile Share Company With a total area of 171,520 square meters, Arbaminch Textile Share Company is located on the outskirts of the town of Arbaminch in Southern Nations, Nationalities and Peoples Region (SNNPR). Well-fenced and guarded, there is no illegal occupant and no trace of passer-bys as such. Its products are available in the market and therefore no benefit accrues directly to the local community. The management personnel resides in the Company houses and cultivates about 80 square meters of land with fruit trees. Grasses grown in the Company are often sold to any dairy producer that offers a competitive price. Hawassa Textile Share Company Located in the industrial zone of Hawassa, the capital of the Southern Nations, Nationalities and Peoples Region (SNNPR), Hawassa Textile Share Company has a total area of 350,000 square meters. Company workers residing on site in the houses provided by the company grow some crops (e.g., maize) on about 1/8 th of a hectare. There is no illegally occupied land. Few fruit trees are available and utilized by Company workers. There is no public or private infrastructure on the site. Page 15 of 88

16 AGRICULTURE SECTOR Bale Agricultural Development Enterprise (BADE) Currently, there are four state owned farms under BADE, whose head office is located in Robe, the Zonal town of Bale, Oromia. The four farms are: (i) Sinana; (ii) Robe; (iii) Hunte; and (iv) Heraro. The four farms have a total area of 12, hectares. The social audit of the farms can be summarized as follows: 1. There was not any illegal inhabitant in the demarcated boundaries of each of these farms. 2. There were legal inhabitants in the farms camp sites and they are all farm workers residing in the houses provided by the respective farms. 3. Most of the farm workers who live in camp in houses provided by the farms grow small garden (fruit trees and vegetables) and keep one or two milk-cows. 4. Residents of the surrounding villages use the farm lands as grazing after harvest in all the farm sites. 5. The households from the surrounding villages using the farm lands as grazing could reach several thousands. For instance, over 40,000 households use Robe farm land as grazing between January and mid-may. 6. The farms have clinics, cafeteria, shops and flour-mills which provide services to their employees and residents of the surrounding villages at fair price. 7. The schools located in the farm camp site, with the exception of Robe Farm, are supported by the farms, primarily in providing accommodation for the teachers and by farming their lands. 8. People who live in the villages surrounding the farms benefit a lot from collecting grain left in a harvest field (qarmii guuruu) and straw during the harvest season. 9. In one of the farms, people from the surrounding villages use well water developed by the farm. Arsi Agricultural Development Enterprise (AADE) The Head Office of Arsi Agricultural Development Enterprise is found in Assela town of Arsi Zone, Oromia. The four farms under the Arsi Agricultural Development Enterprise are Arba Gugu (600 hectares), Geredela (2529 hectares), Gofer (2400 hectares) and Lole ( hectares). Hence the total area under the AADE is hectares. The major observations from the social audit include: 1. With the exception of Lole there are encroachers on the farms. 2. Lole provides services like clinic, primary school and ambulance to the surrounding villages. 3. Farmers from the surrounding villages use the farms after harvest for grazing and collecting straw. 4. In the other three farms close to 400 households use the farm land either for farming or grazing. Page 16 of 88

17 5. The land that is used either for farming or grazing in the three farms could be up to 350 hectares. Abobo Agricultural Development Enterprise It is located at Abobo, 44 kilometers east of Gambella town in Gambella Regional State. It has a cotton farm and a cotton processing factory (ginnery) in Gambella town. The farm and the factory have 4000 hectares and square meters total areas, respectively. The social audit of the enterprise can be summarized as follows: 1. There were 27 illegal inhabitants in Abobo farm. The farm has neither official boundary demarcation nor a map. 2. The factory has a clearly demarcated official boundary as well as a map. 3. There were legal inhabitants in the farms camp sites and the factory, and all of them are employees of the farm and the factory. 4. Many of the farm workers who live in camp grow small garden (sorghum and maize) and keep a few milk-cows. 5. The surrounding villages, people from Abobo town and the employees of the farm use a land left fallow by the farm for grazing. 6. The farm has only a hand pump for drinking water used by the employees and the illegal inhabitants. Middle Awash Agricultural Development Enterprise (MAADE) The Enterprise s HQ and the farms and a ginnery it manages are located in Afar Region, Zone Three, Amibara Woreda. The Enterprise also has a Logistics/coordination office in Addis Ababa located in Gottera area in Addis-Mojo Edible Oil Company s building. Currently, the enterprise manages three state owned cotton farms viz. (i) Melka Sedi; (ii) Melka Worer and (iii) Sidaha Fagie and a ginnery. Other farms mentioned in the original list such as Gewane-Angelele, Dofen balemo and Amibara have already been given to locals or sold to private investors several years back. According to Ato Wubshet (the Manager of Middle Awash Agricultural Development Enterprise) and Ato Tamirat (site representative) these farms are divided among many owners and consequently, there is no single entity to be approached for information. Therefore, the survey team conducted a social audit only for the three cotton farms still owned by the state as listed above, a ginnery and the HQs site of the enterprise at Melka Sedi (five sites in total). Each of these farms is headed by managers whom we contacted through site representative to fill in the checklists and conduct site visit. The enterprise s current total land holding is reportedly 6098 hectares. The Social audit of the farms, a ginnery and the HQ site is summarized as follows: 1. There were illegal inhabitants in the demarcated boundaries of all the farms under the enterprise, but the HQs and the ginnery compounds. 2. There were legal inhabitants in the farms camp sites in the houses provided by the enterprise (farms), all farm employees. The same camp sites also host large numbers of illegal inhabitants who have set up their own dwelling units. Some are nomadic huts of the local Afar community while others are permanent structures established by migrants. Page 17 of 88

18 3. Some of the farm workers who live in camp also engage in petty trade such as shop, tea rooms and other businesses. 4. Residents of the surrounding localities use the farm fields as post-harvest grazing land in all the farms we visited. Pathways and roads inside the boundaries of the farms are used by humans and cattle of the local communities. 5. The households using the farm fields as seasonal grazing land could reach thousands. 6. There were local people who engage in agriculture inside the boundaries of the farms. 7. People also make a fairly liberal use of pathways inside the camps and farms boundaries both for human beings and their livestock. 8. The farms have clinics, schools and water distribution points which provide services to their employees and residents of the surrounding areas. 9. People in the surrounding localities benefit a lot from the canals inside the boundaries of the farm for various purposes: drinking, washing, livestock watering (probably the most important) and irrigation. Upper Awash Agro-industrial Development Enterprise (UAAIDE) UAAIDE is located in two zones of Oromia National Regional State. One of its farms (Merti Jeju Farm), a factory (Merti Vegetables and Fruits Processing Plant) and the HQ of the enterprise are located in Merti Woreda of Arsi Zone. Merti Farm, however, has one of its sub-farms in Jeju Woreda of the same zone. The Nura Era Farm, on the other hand, is located in Boset Woreda of East Shewa Zone. The Enterprise also has a Logistics Office located in Addis Ababa around Saris Abbo area. The survey team made first contact with the enterprise s Logistics office in Addis, through which the letter from PPESA was sent to Merti HQs. Out of the five entities listed under Upper Awash Agro-Industrial Development Enterprise (in the original list of the SOEs for which social audit was to be carried out) two, namely Tibila Farm and Awara Malka Farm, are no longer controlled by the enterprise. Awara Melka Farm has been transferred to Metahara Sugar Company while Tibila has become a share company in which PPESA is a minority (about 13 %) share holder under a new name: Africa Juice Tibila Share Company. After serious negotiation, and thanks to the goodwill of the company Manager, we somehow managed to carry out social audit of this company. On the other hand, our attempt to conduct the social audit of the Awara Melka farm did not materialize. The survey team traveled to Awara Melka, approached the administrator of the farm and requested for permission to conduct the social audit. The administrator declined our request indicating that the farm is no longer under UAAIDE and could not be audited under it. He also insisted that the letter written by PPESA to the UAAIDE could no be used to seek permission to audit the farm. Our attempt to approach Metahara Sugar Company to seek permission to access Awara Melka Farm also did not materialize as the guards refused to let us in without a letter. In general, the survey team carried out social auditing of five major sites, namely (i) Merti Jeju Farm; (ii) Nura Era Farm; (iii) Africa Juice Tibila Share Company (iv) Merti Vegetable and Fruits Processing Plant (MPP) and; (v) Upper Awash Agro Industrial Development Enterprise HQs site at Merti. The enterprise s total land area under these entities is about 4977 ha (excluding the Tibila Farm). Page 18 of 88

19 The social audit of the farms and the processing plant can be summarized as follows: 1. There were illegal inhabitants in the demarcated boundaries of all the farms (reported and observed as well) except the processing plant s compound and the HQs. 2. There were legal inhabitants in the farms camp sites. They constitute two categories viz. (i) farms workers who live in the houses provided by the farms and ; (ii) retired farm workers who have been allowed to set up their dwellings and live within the farms demarcated boundaries on condition that they would leave when requested to do so by the enterprise. The camp sites owned by the farms contain large number of non-farm worker residents. Some of these camps are being converted into small towns that serve both the farm workers and other (illegal) residents. 3. Many of the workers of the farms engage in petty trade, livestock raising, and use the land inside the enterprise s demarcated boundaries for temporarily piling up the harvest and then threshing crops they share-cultivate outside the enterprise s demarcated boundaries. We have observed a number of cattle enclosures used by farm workers and retired farm workers inside the boundaries of the farms. 4. Residents of the surrounding villages extensively use farm fields as post-harvest grazing lands in all the farms visited. 5. Households using the farm land in this way could reach several thousand as judged from the number of livestock the survey team observed in the fields. 6. Pockets of uncultivable lands inside the boundaries of the farms are also used for grazing by the surrounding communities. This use of land appears to be significant. 7. Pocket of lands inside the boundaries of the farms were also used for agriculture by farmers in the neighboring villages who also use water from the canals of the farms to irrigate their farm fields. 8. The farms have clinics, shops, flour- mills, schools and water pumps which provide services to the farm workers as well as to the surrounding communities. Some of the schools and clinics are constructed by the government while others are constructed by the farms. 9. There are also religious institutions and businesses run by some of these institutions inside the boundaries of the farms (public infrastructure?) Coffee Plantation and Development Enterprise a) Limmu Coffee Plantation Enterprise There are seven state-owned farms under Limmu Coffee Plantation Enterprise, whose head office is located in Jimma town. The seven farms are (i) Gomma 1, (ii) Gomma 2, (iii) Kossa, (iv) Suntu, (V) Gummer, (vi) Gojeb and (vii) Chalalaki. The total area of the seven farms is 11,181 hectares. The Social audit of the farms can be summarized as follows: 1. There were more than 200 illegal inhabitants (households) within the farms temporarily demarcated boundaries. Page 19 of 88

20 2. There were thousands of legal inhabitants in the farms camp sites and all of them are employees of the farms. 3. Many of the farm workers who live in houses provided by the farms grow small garden (fruit trees and crops) and keep one or two milk-cows. 4. Most of the farms have put aside small hectarage of grazing land for their workers and the residents of the surrounding villages. 5. The households using the lands inside the farms boundaries as grazing could reach several thousands. For instance, about 4500 households use Suntu farm land and it is expected more than that number is using the Gojeb farm land for grazing. 6. The farms have clinics, kindergartens, schools, cafeteria (recreational centers), flourmills, workshops, roads, and transportation services - which, in emergency, provide services to their employees and residents of the surrounding villages. 7. In all of the farms, the surrounding villages use water springs located inside the farm boundaries. 8. Only in one of the farms (Gojeb), the surrounding villages practice fishing inside the farm boundaries. b) Bebeka Coffee Plantation Enterprise There are four farms under Bebeka Coffee Plantation Enterprise, whose head office is situated at Bebeka, inside the plantation site, 35 km from Mizan Teferi town. The four farms are: (i) Farm 1, (ii) Farm 2, (iii) Farm 3, and (iv) Farm 4, and have the total area of hectares. The social audit of the farms can be summarized as follows: 1. There were more than 200 illegal inhabitants (households) within the farms demarcated boundaries. 2. There were thousands of legal inhabitants in the farms camp sites. While the overwhelming majority is employees of the farms, there are many traders and teachers who live in the compounds based on agreements with the enterprise. Besides, 60 workers of the state owned National Nucleus Project that produces inputs for tyre production were also based in the camp with the consent of the enterprise. 3. Many of the farm workers who live in camp in houses provided by the farms grow small garden (fruit trees and crops) and keep one or two milk-cows. 4. Most of the farm lands have put aside small hectares of grazing land for their workers and the residents of the surrounding villages. 5. The farms have clinics, kindergartens, schools, cafeterias (recreational centers), flourmills, roads, and transportation services in emergency cases and electricity supply for their employees and residents of the surrounding villages. 6. Only one farm allows the surrounding villages to use spring water inside the boundary of the farm and in another farm the surrounding villagers produce gravel for sale. c) Teppi Coffee Plantation Enterprise There are five farms under Teppi Coffee Plantation Entreprise, whose head office is situated in Teppi town. The five farms are called: (i) Farm 1, (ii) Farm 2, (iii) Farm 3, (iv) Farm 4, and (v) Farm 5 and have a total area of hectares. The social audit of the farms can be summarized as follows: 1. There was not any illegal inhabitant residing in the farms demarcated boundaries. 2. There were thousands of legal inhabitants in the farms camp sites. While the Page 20 of 88

21 overwhelming majority is employees of the farms, there are around 100 traders and teachers who live in the compounds with the consent of the enterprise. 3. Many of the farm workers who live in houses provided by the farms grow small garden (fruit trees and crops) and keep one or two milk-cows. 4. All of the farms have allocated small hectares of grazing land for their employees milk-cows. Except Farm 1, the other farms do not allow the surrounding villagers to enter their demarcated boundaries for grazing. 5. The farms have clinics, kindergartens, schools, cafeterias (recreational centers), flourmills, roads and electricity supply for their employees and residents of the surrounding villages. Two farms have churches in their compounds and one farm provides the surrounding village with pipe water. 6. All the farms have spring water inside their boundaries, which are mostly used by their employees and other legal inhabitants and in few instances also by the neighboring villagers. Coffee Processing & Warehouse Enterprise It is located in Addis Ababa, Nifas Silk Lafto Sub-city, Kebele 10/18 (opposite St. Joseph Church). The enterprise has a total area of 50,800 square meters. The major observations of the social audit include: 1. No legal or illegal inhabitant within the demarcated boundaries of the enterprise. 2. No legal or illegal dwelling constructed inside the boundaries. 3. No crops, no grazing lands, no trees and no natural resources inside the enterprise boundaries. 4. No public or private infrastructure on the site. Agricultural Equipment and Technical Service Sh. Co The Share Company s Head Office is located in Woreda 6 of Akaki-Kaliti Sub-city, Addis Ababa. It has two branches in the city, i.e., chemical store and a training center. The Company has a total area of 114,845 m 2 (head office at m 2 ; chemical store at 13,019 m 2 ; and training center at 5,515 m 2 ). The Company has rented some of its holding (space) to three other companies, which run various business activities, one in fact developing new structure for indoor games and recreational activities. The Company has a total of 469 permanent and 8 contract workers. Moreover, it hires 5 to 6 daily laborers a day during rainy seasons to trim the grass on the compound and people during the annual inventory (June to August). There are also some daily laborers who get hired whenever the need arises for loading and unloading work. The company participates in local development activities such as gravel road maintenance, donating used computers to schools and providing some material support to disabled people. The company has a cafeteria run by a trade union which serves the employees of the company as well as the surrounding community. A variety of foods and hot and soft drinks are available at fair price. The Company hall with a capacity of seats is accessible to the surrounding Page 21 of 88

22 community at a reasonable rate for important family events such as wedding ceremonies, etc. Finally, there are no legal or illegal inhabitants or public infrastructure inside the boundaries of the company. Agricultural Inputs Supply Enterprise It is located in Addis Ababa, Akaki Kaliti Sub-city, Kebele 12/13. The Enterprise has a total area of square meters. The Enterprise has 7 warehouses in other towns, namely, Nekemte, Adama, Bahir Bar, Kombolcha and Shashamane. The findings can summed up as: 1. No legal or illegal inhabitant within the demarcated boundaries of the enterprise. 2. No legal or illegal dwelling constructed inside the boundaries. 3. No crops, no grazing lands, no trees and other natural resources inside the enterprise boundaries. 4. There is 1 cafeteria which gives service for the employees and other people living around the enterprise. 5. No private infrastructure on the site. Fish Production and Marketing Enterprise This Enterprise, whose, 7500 square meters, head office is located in Addis Ababa, Akaki Kaliti Sub-city, Kebele 12/13, has three branches, namely Bahir Dar in Amhara Region, Zeway in Oromia, and Arbamich in SNNPR. The three branches of the enterprise use different water bodies for fish supplies, which they buy from fishers from the surrounding areas, both rural and urban. Depending on how the Enterprise s boundaries are defined and their access to the water bodies from which people fish, the number of people likely to be affected by the project varies. The area of land they claim also varies. For instance, the Arbaminch branch claims that both Chamo Lake and Omo River belong to the Enterprise, for that matter they claim all water bodies in the country invoking the provisional decree 178/1986. The Zeway branch on the other hand, produced a legal document showing its possession of land amounting to only 5000 square meters, and the Bahir Dar branch, 16,000 square meters. The major points are: 1. Depending on how the Enterprise s boundaries are defined, there might be people affected by the project. 2. The level of impact on the fishers who supply fish to the Enterprise s various branches can not be determined at this stage. 3. Assuming that Arbamich branch s claim to Chamo Lake and Omo River does not have legal basis, there are no legal or illegal inhabitants within the demarcated boundaries of the enterprise. 4. The Bahir Dar branch reported that The Regional Fish Research Center and the Fisher Men s Association are located within its demarcated boundaries. 5. The The Fisher Men s Association has about 200 members who predominantly depend on fish production and sale for living. 6. There is one cafeteria which gives service to the employees and other people living around the enterprise in the Enterprise s Bahir Dar branch. Page 22 of 88

23 7. No reported or observed legal or illegal dwelling constructed on the site. 8. No private infrastructure on the site. Natural Gum Processing and Marketing Enterprise It is located in Adama town with its stores located in Kebele 04 and 15. It has a total area of 22,909 square meters. 1. No illegal or legal inhabitant within the enterprise s demarcated area. 2. No dwelling (legal or illegal) constructed inside the enterprise s boundaries. 3. No cultivated and grazing land inside the enterprises boundaries. 4. No cattle trail crossing the enterprise s boundaries. 5. No public infrastructure of the enterprise is used by the surrounding community. 6. No private construction inside the enterprise s boundaries. Ethiopian Fruits and Vegetables Marketing Sh. Co The Company is located in Kebele 28, Kirkos Sub-city in Addis Ababa and has a total area of 7404 m 2. The social audit findings of the company are summarized as follows: 1. The Company has two distribution centers in Addis Ababa, each distribution center with its own stores. 2. The Company bought its property 7 months ago under the collateral agreement with Abyssinia Bank after its old holdings had been demolished by the city administration. 3. The Company has rented out some office space at the head office on the 2 nd floor to Ethio-Investment Group (a business company). In addition, some spaces are rented by the Abyssinia Bank. 4. The Company has a total of 240 permanent and 110 contract workers and 60 daily laborers. Moreover, it also employs casual laborers for activities such as packing sugar and loading and unloading work. 5. There are no legal or illegal inhabitants in the compound of the company. Semen Omo Agricultural Development Enterprise (SOADE) Located in the SNNPRS, SOADE was organized into several state-owned farms. Presently, these farms are in turn organized either as Agricultural Development Enterprises or PLC, namely (1) Abaya (1,232 hectares), (2) Arbaminch (805 hectares), (3) Sille (1,475 hectares), and (4) Frieal Farming and Processing PLC (30,000 hectares). Each farm has a defined territory, business plans and operational activities. Over time, however, there has been a change from state to nonstate ownership on the basis of either short-term or long-term lease arrangements. Despite such change, most farms have retained their previous workers as well as production systems. A few, for instance Frieal Farming and Production Enterprise, have modified and/or changed the type of crop produced from annual to perennial. The following key observations can be noted as major features of the SOADE: 1. Many illegal occupants of the lands exist either with a nominal agreement of the farms themselves or otherwise. 2. Illegal occupants have farm plots or grazing lands. Page 23 of 88

24 3. Conflicts between illegal occupants of lands and the farms over land and other resource have led either to court cases or serious contradictions. 4. Farm workers have been legally given residential units where some kind of cultivation and animal rearing is practiced. 5. During and after crop harvest, both illegal and legal occupants are allowed to graze their animals on crop residues as well as to collect grain left in a harvest field. 6. Surrounding communities are at times allowed to utilize some facilities and services owned by the farms. 7. Both illegal and legal occupants of the lands of the farms are allowed to purchase farm products sold by the farms at farm gate price. Hawassa Agricultural Development Enterprise Billito Siraro Farm under Hawassa Agricultural Development Enterprise is located in the Southern Nations, Nationalities and Peoples Region, about 273 km to the south of Addis Ababa. The farm has a total area of 3,000 hectares. The major observations are the following: 1. There are both legal and illegal inhabitants, and about ten hectares of cultivated land other than the farm s own cultivated land. 2. In addition to post-harvest grazing on all farmlands of the enterprise, about twenty hectares is reported as illegal grazing land. 3. Approximately 20,000 people collect grain left in farm field after harvest. 4. There are multi-purpose trees (i.e., as shade and as food) within the demarcated boundaries of the farm, and an estimated 120 people are reportedly using the trees as means of substance or income. 5. Public infrastructures such as school and health post serve both farm employees and the community from the surrounding villages. BEVERAGE SECTOR Assela Malt Factory Assela Malt Factory, with a total area of 18 hectares, is located on the outskirts of Assela town 158 km to the south-east of Addis Ababa. 1. It is a fenced area that is not accessible to anybody outside the factory. 2. Two persons, only the General Manager and the Production Manager, reside on the site of the factory. 3. There is no public or private infrastructure on the farm. Bedele Brewery It is located in Bedele town, Illu Ababor Zone, 483 km to the west of Addis Ababa in Oromia National Regional State. It has a total area of 250,000 square meters. 1. There was not any illegal inhabitant in the Brewery s demarcated boundaries. 2. There were legal inhabitants in the brewery s camp site and all are employees of the Brewery. Page 24 of 88

25 3. There was not any farm or grazing land in the demarcated and well-fenced boundary of the Brewery. 4. There is a cafeteria which is accessible both to the employees and people from outside. Harar Brewery The Harar Brewery is located in Harar town 525 km to the East of Addis Ababa. The Factory s total area is 11 hectares. 1. There are no residents on the Factory s site. 2. There are no private infrastructures on the site. 3. The Factory occasionally provides water to the residents around the Factory during the chronic shortages of water of Harar town. 4. About four peasant associations through which the Factory s water supply passes use the water with the consent of the Factory. FOOD SECTOR Hamaressa Edible Oil Share Company The Hamaressa Edible Oil SC is located in Harar Town, about 525km to the east of Addis Ababa. The company has a total area of about 46 hectares. 1. There are no residents (legal or illegal) on the Factory s site. 2. There are no private infrastructures on the site. 3. Some peasant associations get water from the Factory s water supply. CONSTRUCTION SECTOR Tabor Ceramics Share Company Tabor Ceramics Sh. Co. is located in the town of Hawassa with an area of 260,000 square meters. It is the only Company of its kind in the country. It is fenced on all sides, as a result there is little intrusion from outside. There are a few management personnel that reside in the Company compound and none of them has individual use of Company land. Fruit trees utilized by the Company workers in the past are cut down. The surrounding community seems to have enjoyed preferential employment opportunity offered by the Company. Page 25 of 88