RESETTLEMENT POLICY FRAMEWORK FOR THE KAFUE TOWN-MUZUMA LIVINGSTONE 220KV TRANSMISSION LINE UP GRADE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized RESETTLEMENT POLICY FRAMEWORK FOR THE KAFUE TOWN-MUZUMA LIVINGSTONE 220KV TRANSMISSION LINE UP GRADE PREPARED BY ENVIRONMENT AND SOCIAL AFFAIRS UNIT DIRECTORATE OF ENGINEERING DEVELOPMENT AND PROJECTS DECEMBER

2 TABLE OF CONTENTS 1.0 INTRODUCTION Brief Project Objectives Brief Project Scope RESETTLEMENT POLICY FRAMEWORK GOVERNING PRINCIPLES Legislation and compensation policy Land acquisition Plantation and crop compensation LAND ACQUISTION AND STATUS The substations Kafue Town substation Muzuma Mukuni/Livingstone The Transmission line way-leave Kafue Town-Muzuma-Mukuni/Livingstone INSTITUTIONAL RESPONSIBILITIES Institutional responsibilities External Monitoring Agencies ZESCO Limited Project Consultants and Contractors Grievance mechanism IMPLEMENTATION SCHEDULE IMPLEMENTATION COST

3 1.0 INTRODUCTION 1.1 Brief Project Objectives Arising from the power shortages that the country and the sub-region has been experiencing during the past few years, the Zambian Government embarked on various measures to reduce the impact of power shortages. Among the short term measures were energy policy reforms that saw the creation of the Office for Promotion of Public Private Investment (OPPPI) to promote private participation in power development. Also system reinforcement through grid extension and line reconfiguration, were among the short measures that the Government had embarked. Government was also mindful of the need to develop long term strategies to cope with the increase in power demand. New power infrastructure developments were envisaged for various sites such as the Kafue Gorge Lower, Itezhi-tezhi, Kariba North Bank Extension and sites for small hydropower stations. Among the short term measures to reduce the impact of the power deficit was to upgrade power system capacities hence the proposed upgrading of the Kafue Town Muzuma - Victoria Falls 220kV transmission line to 330kV. The upgrade is envisaged to increase the power transfer capacity of the line from north to south and vice versa. Additionally, the upgrade project would also significantly reduce losses and increase stability benefits to the power system that is connected to Botswana and Namibia. Power load for Livingstone town is currently approximately 30MW while the Kazungula Botswana Sesheke-Namibia-Mongu to Kaoma segment is envisaged to reach about 100MW in due course. Power generation at the Victoria Falls power station will not be sufficient to meet the anticipated demand. The upgraded line is therefore, a necessary link into the national grid for power transfer purposes. ZESCO is now seeking funding through Government, to implement the project. As part of project implementation preparations, The Environment and Social Affairs Unit (ESU) undertook environmental studies and preliminary assessment of the affected infrastructure, settlements and community assets on the project. This was done in line with the provisions of the draft company compensation policy. 1.2 Brief Project Scope The Kafue Town Muzuma - Victoria Falls 220 kv line upgrade project will involve upgrading the current existing line to a 330kV power line from the Kafue Town substation to the proposed Zimbabwe-Zambia Botswana-Namibia (ZIZABONA) substation in Chief Mukuni s area in Livingstone, a distance of approximately 341Km. 3

4 The transmission line to be upgraded will use the already existing towers and the already existing way leave, which was acquired in the early 1970 s for the project. This transmission line has a way-leave of 50m, with 25m on each side of the line. The project scope will therefore include line upgrade (Kafue Town-Muzuma- Livingstone), construction and installation of appropriate line bays and transformers at Kafue Town and Muzuma and construction of a new substation at the proposed Mukuni Road substation in Livingstone. The above scope entails some land acquisition at Livingstone that would involve land take of sections of peoples properties (e.g. farms, houses); infrastructure disturbance; and, in some cases, crop damage during project implementation.it is against this background this project resettlement policy framework has been developed. It is not expected that any project-affected persons will need to be resettled. (Acceptable) 2.0 RESETTLEMENT POLICY FRAMEWORK GOVERNING PRINCIPLES The resettlement policy framework is aimed at putting in place basic safe guards and guidance for land, infrastructure and crop compensation that may arise from project implementation. The ZESCO draft compensation policy is drawn from applicable sections and provisions of relevant national legislation such as; the land administration, acquisition and use. Environmental, natural resources, energy, town and country planning and other relevant legislation were also considered in developing the draft compensation policy (see table 1 below). 4

5 Table 1: Legal and Institutional outline Legal Instrument Main Provisions Responsible Institutions Environment and Natural Resources Management Environmental Protection and Pollution Control Act, Cap 204, 1990 Natural Resources Conservation Act, Cap 315, 1970 Town and Country Planning Act, Cap 283, 1962 To protect the environment and control pollution, so as to provide for the health and welfare of persons, animals, plants and the environment. The Act covers water, air, waste, pesticides and toxic substances, noise, ionizing radiation and natural resources, etc Conservation and improvement of natural resources and control of bush fires. Provides for the appointment of planning authorities, the preparation approval and revocation of development plans, and the control of development and subdivision of land Water Resources Development and Management The Zambezi To provide for control and Zambezi River Authority Act No. 17 of the use of water Authority Environmental Council of Zambia, Ministry of Tourism and Natural Resources Ministry of Tourism, Environment and Natural Resources Local Councils River Relevance to the Project EIA approval decision letter necessary for project implementation Environmental monitoring to continue throughout the project phases Monitoring of natural resource conservation and utilization aspects Approvals of construction and area plans Regulation of abstraction of water from the Zambezi River 5

6 Legal Instrument Main Provisions Responsible Institutions Laws of Zambia Relevance to the Project Water Supply and Sanitation The Water Framework for providing Supply and and regulating water and Sanitation Act sanitation services to all No. 28 of 1997 areas. Creates the Council (i.e. NWASCO) which administers the Act Forestry resources management The Forest Act Control, manage, conserve No. 7, 1999 and administer National and Local forests; Participation of local communities, traditional institutions, and NGOs; Conservation and sustainable use of forests and trees; and, Implementation of International Instruments. Creates Forestry Commission Wildlife resources management The Zambia Wildlife Act, No. 12 of 1998 Fisheries resources Management Fisheries Act, Cap 200, 1974 To control and manage national parks, GMAs and bird sanctuaries for the purposes of conserving and enhancing wildlife eco-systems. Provides for development of commercial fishing and Ministry Local Government Housing; NWASCO of & Zambia Forestry Commission (yet to be formulated) / currently by the Department of Forestry Zambia Wildlife Authority Ministry of Agriculture and 6 Regulation of water supply and sanitation aspects Coordination and management of the surrounding forest areas To protect both wildlife and forest resources especially in the GMA Assessing types of fish species suitable for various water bodies

7 Legal Instrument Main Provisions Responsible Institutions the registration of Co-operatives fishermen and their boats and the protection of endangered fish species Mining activities Mines and Regulates the law relating Ministry of Minerals Act, to mines and minerals Mines and No. 31 of 1995 Minerals Development Agriculture Agriculture (Fertilizer and Feed) Act, No. 226 of 1990 Cultural Aspects National Heritage Conservation Act No. 23 of 1989 Regulates and controls the manufacture, processing and importation and sale of agricultural fertilizers and feed, and establishes minimum standards and purity Protection of heritage sites, archaeological sites and artifacts. Electricity industry Energy Regulates prices for Regulation Act electricity, petroleum products and other energy related products Electricity Act Generate, transmit and distribute electricity in Zambia Ministry of Agriculture and Co-operatives National Heritage Conservation Commission Energy Regulation Board Ministry of Energy and Water Development Relevance to the Project To preserve the area if minerals are found Soil conservation around the reservoir and protection of fish species in the reservoir. Monitoring and management of all identified cultural and archaeological sites in the area License for energy generation required before commencement of development. It is the governing Act for the operations of the Power station 7

8 Legal Instrument Main Provisions Responsible Institutions Energy Regulation Board Lands management The Lands Act Controls the alienation of Ministry of land for various uses by Lands developers. Relevance to the Project Governs the acquisition of the land to be used for the development of the Power Station infrastructure 8

9 In addition to the national environmental legal framework, this RPF takes into consideration World Bank Safeguards Policies that could be potentially triggered by the project. The table below gives some of the Environmental and Social Safeguard Policies that would potentially be triggered by the transmission line project: List of Some of the World Bank Environmental and Social Safeguard Policies relating to power line projects and their Objectives No. Safeguard Policy Objective Environmental Assessment To help ensure the environmental and social soundness and sustainability of investment projects To support integration of environmental and social aspects of projects into the decision making process 4.04 Natural Habitats To promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions Involuntary Resettlement 4.20 Indigenous Peoples 4.11 Physical Cultural Resources To avoid or minimize involuntary resettlement and, where this is not feasible, to assist displaced persons in improving or at least restoring their livelihoods and standards of living in real terms relative to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. To design and implement projects in a way that fosters full respect for Indigenous Peoples dignity, human rights, and cultural uniqueness and so that they: (a) receive culturally compatible social and economic benefits; and (b) do not suffer adverse effects during the development process. To assist in preserving physical cultural resources and avoiding their destruction or damage. PCR includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance. It should be noted that where the National legislation conflicts with World Bank Environmental and Social Safeguard Policies the World Bank policies shall supersede. 9

10 2.1 Legislation and compensation policy Land acquisition The power infrastructure on the project such as substations and access roads may require extra land in some cases. In this instance as a matter of both policy and practice, ZESCO will seek unoccupied, available land, either vacant government or traditional land, or undeveloped land held by a willing seller. ZESCO s practice is to always obtain consent and negotiate with landowners for extra land or user rights as the case may be. It is very rare that ZESCO would directly and immediately resort to compulsory acquisition of land for power infrastructure development as provided for in the Land Acquisition and the Electricity Act through the Office of the President. There are various modalities that have been put in place over the years that ZESCO as a public utility has been following. However, these have been improved over the years to reflect the changes in economic liberisation and other national changes. For instance in assessing the value of affected infrastructure on the project (in the way-leave route or at substations), the following are taken into account; Statutory Provisions of the Electricity Act No. 15 of 1995 and the Land Acquisition Act Cap 296 of the Laws of Zambia. Part III of the Electricity Act No. 15 of 1995 provides procedural guidelines for the acquisition of land and rights over land. Pursuant to these provisions, ZESCO Ltd serves Notices of Intention to enter the land for the purposes of surveying the route of the power line or marking out the required land for power infrastructure development. However, the Act is not clear on the principles of assessing compensation where way-leave over land is created but no land taken. Section 14 of the Electricity Act however, makes reference to the Lands Acquisition Act Cap 296. The Act deals with compulsory acquisition of land. Under this Act, the principles of assessing the amount of compensation for land taken are contained in Part III (Section 12). Way-leave creation: it is always assumed that agreements are reached with the affected people regarding way-leave creation before project implementation. That is by creation of a right of way with a Restrictive Covenant where no land per se is taken and any applicable payment of a lump sum in full and final settlement for all building structures and other infrastructure such as fences etc on the affected land is made based on valuation report by an independent and registered property valuator or Government Valuation Department. The engaged valuator should take into consideration during the process of determining the amount of compensation to be paid to the affected persons, the following; 10

11 Replacement Cost; Amount that can enable the affected person to build better structures; Inconvenience caused by relocation and the commercial value of the affected infrastructure. Capital valuation of the affected structures is required for a lump sum payment in full and final settlement. Under the Restrictive Covenant, it should be understood to mean that the affected people will still have access to the use of the subject land. However, their use of the land and agricultural operations will be restricted by the covenant in that construction of buildings under the power line is prohibited but growing of normal height crops and cattle grazing is permissible. Accordingly, the principles of assessing the amount of compensation under the Electricity Act will apply. Other Considerations: Generally disturbance arising from project implementation should also take into consideration issues of severance, injurious affection and disturbance, betterment or worsen-ment of the affected people. Therefore, the basis of any physical infrastructure valuation should generally be in accordance with ZESCO s normal practices of compensation, the provisions of the Electricity Act No.15 of 1995 and the Land Acquisition Act Cap 296 and other relevant Laws of Zambia. Valuation aspects could include; Market Value (...the value of the property shall be subject as herein provided, be the amount which the property might be expected to realize if sold in the open market by a willing seller at the time of publication under Section 7 of the notice to yield up possession) taking into account; the replacement cost of a substitute structure to be erected upon relocation to a new site which is assumed not to be far away from the present site; the likely residual value of some building materials; disturbance payments for relocation expenses, demolition costs of existing structures and new site clearance and Equivalent Reinstatement Value. Any project activity requiring permanent or temporary land acquisition will first prepare a Resettlement Action Plan, seek clearance from the World Bank and provide compensation prior to implementing civil works which would cause impact on persons assets. A Resettlement Action Plan (RAP) shall be prepared by ZESCO and shall include the following: Project description Legal overview Assessment of socio-economical baseline and impacts Resettlement purchase Resettlement and compensation time frame Institutional responsibilities for the RAP Implementation cost Monitoring and Evaluation Sources of funding 11

12 All people whose houses or any other property shall be damaged during project implementation shall be compensated regardless of whether they have titles for the land or not. Public consultation meetings at various stages of the project i.e planning implementation and monitoring. Other stakeholders such as Chiefs, Government Officials, area Members of Parliament and NGOs are involved in the consultation process Plantation and crop compensation ZESCO takes keen interest in ensuring that power infrastructure development is carried out in an acceptable manner. It is therefore, a requirement that all developments that involve access to private, public or traditional land are communicated to the affected people through appropriate notices and or permits. In the event that the project implementation schedule coincides with a cropping season or affects plants/trees and or crops, appropriate compensation is worked out. Such compensation is always based on valuation reports by a competent arm of Government such as the Department of Agriculture, Department of Forest and others. The basis of valuation would normally take into consideration the following; Crop/plant type or species Yield or product yield (like timber) Market value of the yield Life span of the plant or fruit tree Sentimental value (though very difficult to determine). 3.0 LAND ACQUISTION AND STATUS 3.1 The substations Kafue Town substation The line upgrade and new power system configuration that be carried out within the framework of the existing substation. No extra land will be required for the works. 12

13 3.1.2 Muzuma The Muzuma substation is Choma has been in existence for over 30 years. The envisaged line upgrade and installation of the new equipment at the substation shall utilize the existing area that was acquired from the local traditional leadership at the time of line construction Mukuni/Livingstone The site for the proposed Mukuni/Livingstone substation was acquired from the local traditional leadership under the Zimbabwe-Zambia-Botswana-Namibia (ZIZABONA) project. The land conversion process from customary to leasehold is already in process following the cadastral survey by the regional office of the Surveyor General s office. 3.2 The Transmission line way-leave Kafue Town-Muzuma-Mukuni/Livingstone The way-leave of the existing transmission line from Kafue Town substation to the proposed Mukuni/Livingstone substation is numbered. This entails that user rights are conferred to the power line operator. 4.0 INSTITUTIONAL RESPONSIBILITIES 4.1 Institutional responsibilities The planning, implementation and management of any compensation activity on the project shall be conducted by a range of project authorities including decision-makers, departments and district Government authorities in close collaboration with ZESCO Limited External Monitoring Agencies The Environmental Council of Zambia monitors implementation of the environmental management plans on approved projects including compensation aspects. Any funding agency or interested Agency/party could monitor the compensation activities in close consultation with the project staff (especially the Site Manager and the Environmental Coordinator). 13

14 Monitoring of the RAP shall involve ZESCO project team and other stake holders such as the Chiefs, Government officials, Area Members of Parliament and NGOs. Construction of the new houses at the newly acquired site will be closely monitored to ensure that the standards are maintained. Indicators such as quality of houses constructed, access to social services such as health and education, agricultural production and access to ICT (radio, satellite TV phones etc) will be used to check if affected people have been able to maintain or improve their standards of living equal to pre-project levels ZESCO Limited ZESCO Limited shall put in place a project team before the intended start period for the project. The primary objectives of appointing the project team shall include, but not limited to the following: Represent the company directly on the project. Liaison with affected parties (landowners, hamlet residents and farmers) in all decision making relating to the resettlement planning, implementation and monitoring; Responsible for ensuring that compensation principles, policies, and procedures are followed. Liaise with the financing agencies in monitoring of the relocations through incorporating directly affected parties needs by recruiting from the communities and supporting some community development initiatives; Act as a team to deal with any grievance arising from compensation issues on the project. The project team may comprise the following: The Project Manager; Site Manager; Electrical Engineer (Transmission, Protection, Substations); Civil Engineer; Surveyor and Environmental Coordinator. Project team members shall be required to ensure that the project is implemented successfully and to provide progress reports to company management on project progress. The Environmental Coordinator (ECO) shall be responsible for identifying and assessing all areas with compensation issues. The ECO in consultation with the project/site manager will also be responsible for conducting consultations with the local community on compensation matters. The ECO will also ensure compliance with agreed mitigation measures in the EMP including contractor s movement on the line, construction schedule and land access schedules. The ECO shall ensure that compensation requirements are met before commencement of construction. And in liaison with communities and the contractor handle any grievance that could delay project implementation. The ECO will also be responsible for the effecting all compensations. The ECO shall prepare appropriate daily, weekly and monthly logistical and operational plans related to environmental management on the project in close co-ordination with project management, contractors and service providers on the project. 14

15 ZESCO on the other hand shall assist the project team including, the ECO, to follow on compensation matters by providing logistics and other management resources required for the assignment. The Company shall also allocate and schedule resources to assist with implementation of all compensation payments. ZESCO will also assist the project team with the administration and logistical control of the field activities including compensation budget Project Consultants and Contractors The project consultants, contractors and suppliers/service providers on the project will: Assist the ECO in locating any affected persons that may be discovered during project implementation. Assist the ECO to follow up on compensation matters providing the relevant information required to effect compensation settlements. Provide description of skills that will be required for the locally sourced construction labour to evaluate which of the affected persons may qualify for employment. 4.2 Grievance mechanism Impacts on infrastructure by the transmission line project could be inevitably and may give rise to grievances among affected people. This could vary from rates of valuation, compensation eligibility criteria and actual compensation payments. Timely redress or resolution of such grievances is vital to ensure successful implementation of the project. ZESCO Limited always puts in place procedures that allow affected people to lodge complaints or claims with the project team. The full time project team ensures that all such grievances are resolved within a reasonable time frame. Grievances related to any aspect on projects are handled through negotiations with affected people. The complaints received from affected people can be in verbatim, or in writing. Any project team member that receives such complaint notes the same in writing for further consideration. The following may form part of the documentation about a grievance: Description of the grievance; Location of the complainant on the project Date the grievance received; Description of the resolution; and Date the grievance was resolved. In addition to the above mechanisms, and at the option of the affected person, grievances may be taken to other mediating bodies, such as the local leadership or any other dispute resolution 15

16 mechanism as may be decided by the affected person. If the matter still remains unresolved after all levels of grievance redress have been followed, the complainant may seek redress in a court of law. 5.0 IMPLEMENTATION SCHEDULE All matters related to land acquisition or obtaining land use rights, are envisaged to be concluded before project implementation unless where such matters will be referred to external institutions such as the Ministry of Lands for determination. Compensation issues are envisaged to also be concluded before project implementation. 6.0 IMPLEMENTATION COST The overall project cost will include anticipated costs related to compensation events for infrastructure, land acquisition, crop damage etc. This cost is be embedded in the contingencies, which amounts to USD 2,263,

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