DRAFT EXECUTIVE SUMMARY

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized DRAFT EXECUTIVE SUMMARY IPUH - BANTAL (LINK 015.1) KABUPATEN MUKO-MUKO YEAR 2010

2 EXECUTIVE SUMMARY I. BACKGROUND OF PROJECT Referring Law of GoI No 38 of 2004 about Road, purpose of the road transportation is to arrange a safe, safely, smooth, comfortable and efficient traffic and road transportation in order to support national development and economic stability. Ipuh-Bantal Link is part of Central Sumatera Corridor which is has function as a main road on the distribution of daily needed goods in Sumatera. So to improve capacity of the link road and to meet the minimum width of National Road (according to the UU Jalan No. 38, 2004), the existing road link will improve 7.00 m of carriage way, 2.00 m of shoulder and 1.50 of ditch and a new right of way total of 14 m is needed. According to the initial survey the improvement might need additional land out of the existing Right of Way and as stated in the Loan Agreement between GoI and World Bank, if any encroachment in the Right of Way or if the project additional land should be prepared a Land Acquisition and Resettlement Plan that should be prepared in accordance with World Bank Guidelines. The primary purpose of the LARP is to identify impacts and to plan measures to mitigate these impacts, compensate for various unavoidable losses generated by project and provide rehabilitation assistance to Affected People where needed. The Land Acquisition and Resettlement Plan for the Ipuh - Bantal Link is prepared based on primary and secondary data. Primary data is collect by information from affected people (squatter) trough individual interview or focus group discussion. Socio economic survey conducted using structured questionnaire and unstructured questionnaire to the entire PAPs. Secondary data are collected from several institutions as followsthe Bupati of Mukomuko District, Dinas Pertanian of Mukomuko District and Dinas Public Work of Bengkulu Province. Data analysis is also conducted with statistical method together with tables, graphics or map with quantitative explanation. Description of affected people, their general perceptions and aspirations concerning the project, are also prepared in a qualitative way. The Ipuh-Bantal link is passed over four Sub District i.e. Ipuh, Sungai Rumbai, Pondok Suguh and Tramang Jaya, all in the Mukomuko District of Bengkulu Province. Following is brief dscription of project planning Description Existing Project Plan Effective Lenght km km Carriage way 4 6 m 7.0 m ROW m 14 m II. SOCIO ECONOMIC INFORMATION AND PROFILE According to the socio economic survey most of the affected parties are categorized in productive age (20 to 50 years) and work as a farmer of coconut oil palm, that have income more than Rp. 1,000,000 in average. Almost half of PAPs (45%) are have good education which were graduated from Senior High School and College. Basically most of them have been living at the location for more than ten years. LARAP IPUH-BANTAL 1

3 Knowledge of the Project. When they asked about their knowledge on the project planning almost all of the PAPs said they don t know yet, which is this because of socialization has not carry out by Project or Government yet. Further they expressed basically they support the project planning but hope the formal socialization will carry out before project started to give detailed information about the project planning to the affected parties, including the compensation that they will get. Further, all interviewees expressed their expectation to get some cash compensation for their affected properties. Positive and Negative Impacts of the Project. The anticipated positive and negative impacts were also assessed during the socio economic survey. The improvements for transportation, improvement for access to services (education, health and market) and the reduction of travel time are seen as major positive impacts. Reduction of local peoples assets due to the project is the main negative impact. Thus, appropriate compensation should be applied in order that their standard of living is the same or better than before the project started. III. COMPENSATION AND ENTITLEMENT MEASURED APPLIED Based on the Detailed Measurement Survey (DMS)conducted alongside the Ipuh-Bantal (42,150 km) which was conducted parallel with the socio economic survey from November , the total numbers of affected parties are found in the next table. Summary Table of Projects Affected Parties NO AFFECTED PROPERTIES TOTAL AHs 1 Affected land (m2) A. Total Land 151,013.6 m2 B. Total affected land 2,609.5 m2 C. No of parcel land affected 170 Parcels 2 Affected Structure (Private) 184 units A. Structure 38 units B. Terrace 91 units C. Fence (wooden and wall) 45 units D. Foundation 6 units E. Others (kolam and cemetery) 4 units 3 Affected Structure (Institution) 11 units A. Structure (semi permanent) 2 units B. Terrace 2 units C. Fence (wooden,wall, wire) 7 units 4 Plants 32 plants Furthermore, based on the Detailed Measurement Survey, the land to be acquired for project only affects 2% of their total land in average. The structures are only midly affected and none of them require relocation. No utilities are affected by project. The entitlements to compensation and assistance of PAPs are as follows: Affected land 2,609.5 m2 For permanent loss of land (agricultural, residential or commercial land), cash or compensation at replacement cost which is based on market value that reflect recent land LARAP IPUH-BANTAL 2

4 sales plus tax value divided by two. Since no information about market price was available from the local bank, the price was obtained from the Head of each Sub District or Head of Village Information. Affected Structure (terrace, fence and foundation) For affected buildings and other affected properties (fences, terrace, foundation) an estimate for compensation is given at replacement cost based on calculation using actual current market prices of materials and actual cost of labor for dismantling and rebuilding issued by Dinas Pekerjaan Umum of Bengkulu Province Affected Plants Compensation for affected plants are based on the market price that got from Detailed Measurement Survey, which is equivalent to age, type and production calue Land Certification Cost (Splitzing) : Regional government will make new certificate for all of the affected land and certificate splitzing for affected certificate land. Estimation cost for certification is about Rp. 750,000,- per certificate. IV. CONSULTATION AND PARTICIPATION Consultations will be conducted with the PAPs in accordance with World Bank policy. MPW will also ensure that the affected population and other stakeholders are informed about the project planning.methods used during the consultations include public meetings, individual interviews, group interview, and field level observations. All minutes of meetings, photos, attendance sheets will be prepared and recorded. Following are some information will be given during socialization : Description of land acquisition plan and schedule of implementation Detailed compensation that will be given as mentioned in the LARAP document and how the PAPs will get the compensation. Outline of negotiation process to get agreement of compensation Explanation on the process and time to get compesation Explanation about grievance redress mechanism. The LARAP will disclosure in the notification board in Village/Sub District Office. V. GRIEVANCE REDRESS MECHANISM The main objectives of the grievance procedure are to provide an avenue for APs to voice dissatisfaction, make complaints or express grievance either verbally or in writing. APs consultation and mechanisms should effectively minimize the occurrence of major grievance. Grievance lodged by an affected person can relate to any aspect of the land acquisition and resettlement including eligibility, rates and access to compensation being offered for their losses. To ensure that affected people have avenues for redressing their grievances, detailed procedures will be established for the Project as mention in the attachment 1. VI. INSTITUTIONAL ARRANGEMENT The Decree of the Head the National Land Agency No.3/2007 on Mechanism, Norms and Standards for Government Authority and Management of Agrarian Affair, stipulates that land acquisition and resettlement will be executed by the Committee established by LARAP IPUH-BANTAL 3

5 Governor, or Bupati (Regent) or Walikota (Mayor). The Land Acquisition Committee includes Representatives of Land Office, Agriculture Office, The Head of District and Village, and two Secretaries. The Committee will determined a Independent Land Appraisal for appraise compensation of affected land. VII. MONITORING Internal Monitoring. The Internal Monitoring Team will be established by the Local Government of Mukomuko District when Land Acquisition and Resettlement Plan will be started. Team will consist of Local Government of Mukomuko District (BAPPEDA), representative of the PAPs, and University/LSM for independency. The team will be led by one person selected by members of the team. External Monitoring. The Project will engage a qualified monitor to carry out independent external resettlement monitoring and evaluation. The monitor will ascertain whether PAPs have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. The monitor will conduct semi-annual investigations during resettlement and annual survey updates for one years after the completion of resettlement. VIII. IMPLEMENTATION SCHEDULE No Activity Schedule 1 Preparing LARAP Documents November 2010-January Establishment of Land Acquisition Committee and Land Appraisal Team January Socialization of land Acquisition and Relocation January Formal Measurement and Inventory by Land February-March Acquisition Committee including cut off date Meeting to discuss agreement in compensation amount and finalize draft agreement for signature. February-March Payment of compensation April-May Protection of acquired land July-August Complaints and grievance Februari-Juli Monitoring and Evaluation Januari-Juli Sertification/Splitzing Agustus 2011 IX. LAND ACQUISITION BUDGET No Particulars/Items Quantity Estimated Budget (Rp) Responsibility 1 Cash compensation for affected land 2,609.5 M Cash compensation for partially affected structure (temporary and semi permanent) M Mukomuko District Gov. Mukomuko District Gov M Mukomuko LARAP IPUH-BANTAL 4

6 No Particulars/Items Quantity Estimated Budget (Rp) Responsibility 3 Cash compensation for affected fences District Gov. 4 Cash compensation for affected terrace M Mukomuko District Gov. 5 Cash compensation for affected Mukomuko 61.5 M foundation and pond District Gov. 6 Cash compensation for affected Mukomuko 2 units cemetery District Gov. 7 Cash compensation for all trees Mukomuko affected by project based on type and 32 trees District Gov. age 8 Protection of acquired land 20 units Mukomuko 10,000,000 prohibition sign District Gov. 9 Sertification / split zing cost 170 plots Mukomuko District Gov. 10 Removal Cost 193 units Mukomuko District Gov 11 External Monitoring Team LS 75,000,000 Project/DGH Total land acquisition budget ADMINISTRATION 1 Committee of land acquisition 2 Land Appraisal Team 3 Socialization and Discussion Cost 4 Internal Monitoring & Evaluation Note:*) This will need further discussion with related stakeholders LS Will be determine by Mukomuko District Gov The estimated budget for the involuntary resettlement under this road is Rp. 1,073,132,728 excluded administration cost, Internal Monitoring Team and Land Appraisal establishment and costs for socialization. The budget is expected to come from the Mukomuko District Government through APBD than LARAP IPUH-BANTAL 5

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