GOVERNMENT OF MALI RESETTLEMENT POLICY FRAMEWORK

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized u 0-.- N L 0. The Government of Mali 5 2 a, L 3 V) V) 6-0 0) N.- r 5. - GOVERNMENT OF MALI = HOUSEHOLD ENERGY AND RURAL ACCESS PROJECT RESETTLEMENT POLICY FRAMEWORK (FINAL DRAP ) James Orehmie Monday

2 TABLE OF CONTENTS Page Nos A. Introduction and Project Description..3. B. Principles and objectives governing resettlement preparation..8 and implementation. C. A description of the process for preparing and approving..li Resettlement plans. D. Land acquisition and likely categories of impact...15 E. Eligibility criteria for defining various categories of project affected persons...17 F. A legal Framework reviewing the fit between the laws of Mali..I9 and regulations and Bank policy requirements and measures to bridge any gaps proposed between them. G. Methods of valuing affected assets...23 H. Organizational procedures for the delivery of entitlements, including,..31 for projects involving private sector intermediaries, the responsibilities financial intermediary, the government, and the private developer. I. A description of the implementation process, linking resettlement implementation..33 to civil works. J. A description of the grievance redress mechanisms...34 K. A description of the arrangements for funding resettlement, including the. -34 preparation and review of cost estimates, the flow of funds, and contingency arrangements. L. A description of mechanisms for consultations with, and participation of,..36 affected andlor displaced persons in planning, implementation, and monitoring. M. Arrangements for monitoring by the implementation agency and, if required, by independent monitors.

3 A. INTRODUCTION AND PROJECT DESCRIPTION 1. Mali with a total land area of 1.24million square km is one of the largest countries in Africa with a population of about 11.4million people making it also one of the least densely populated countries on the continent, with an average population density of 9.2persons/sq km. However, since most of the country north of Tombouctou is part of the Sahara Dessert, the concentration of people is towards the south, and the population density and land use significantly increases around the fertile plains of the Niger River, which incidentally is second in length in Africa orily to the Nile. 2. Mali is also one of the poorest countries in the World, with barely one percent of the rural population having access to electricity. The Energy sector is facing many challenges associated with development which have been exacerbated by tariffs way below economic costs, acute rural poverty, low rural incomes, poor rural infrastructure and intermittent drought with harsh sub tropical to arid climatic conditions. Until 2001, unreliable power supply in Bamako and other urban and pen-urban areas was a major constraint for socio-economic development. The state power utility Energie du Mali (EDM) was poorly managed and lacked investment funds to ensure quality and reliability of services to consumers and to expand access to electricity to a growing number of households in demand. 3. In terms of Household Energy, 90% of the total household energy consumption in Mali is from traditional biomass energy sources in the form of fuelwood, charcoal and dung. Total woodfuel energy in Bamako for example has grown by 100% in six years to about 1,200,000 tons in Biomass energy is and will continue to be at the center of the total energy balance in decades to come. Indeed at current rates of rural electrification, the poor will have to wait for many decades in order to have access to electricity. 4. However, the Government of Mali (GoM) is working to address this situation and has taken important and meaningful steps that have started to improve the performance of the Energy sector and is to be commended and supported for this. 5. For instance, The GoM in November 1999 issued a policy statement for the Energy sector which laid out priority areas that would be the focus of their attention. Overall, the policy statement strongly called for an improved sector efficiency, the need to withdraw the public sector entirely from all operational responsibilities in the sector, and to extend service coverage. To that end, the Government has restructured the sector by adopting a new Electricity Law which ended EDM's monopoly by opening the sector to competition, under a regime of transparent regulation by an independent agency. 6. This led in December 2000, to EDM being privatized and the new operator (SAUR International) has assumed his responsibilities resultiflg in a notable increase in service quality and performance, acknowledged both by Government and the consumers. 7. Furthermore, in partnership with the World Bank, a country assistance strategy was developed and for the energy sector focuses on supporting competitive, broad-

4 based growth in the rural and peri-urban areas by helping to increase productivity and to improve living standards through action in two critical areas; (a) empowering local communities to enable them to manage economic and social development, and (b) to reduce and refocus the State's role to one of facilitator and regulator while creating at the same time an enabling environment for increased private sector and NGO participation in the energy sector. 8. In line with this strategy and consistent with the energy policy, the GoM with support from the World Bank, is preparing the Household Energy and Universal Rural Access (HEURA) project which has an overall goal to increase access to energy services to help achieve it poverty reduction targets linked to those with the Millennium Development Goals. The detailed project objectives (a) to strengthen the energy sector reform process and institutions to create a favorable investment environment for increased private sector participation in energy services delivery, (b) accelerating the use of modern energy in rural and peri-urban areas in order to improve living standards, to enhance quality and efficiency of health and education centers, and to increase productivity of small and medium enterprises; and (c) promote further community based woodland management to reduce unsustainable pressure on forest resources while simultaneously encouraging interfuel substitution and energy efficiency initiatives. 9. The HEURA project is structured to achieve its objectives through three components which are; (i) Component 1 : Capacity Development and Institutional Strengthening. Under this component support would be provided for the following activities; (a) Training and capacity building program for the members of the commission in the areas of regulatory analytical accounting, finance and economics, tariff design. (b) Technical assistance to develop and implement the monitoring and evaluation program of the operators, and to build awareness among consumers and technical ministries staff, (c) Supply of equipment and tools and best practice, (d) Training and capacity building program for the DNE staff in the areas of policy formulation, monitoring, evaluation, and impact assessment, and (e) Technical assistance to set up a monitoring, evaluation and impact assessment systems. (ii) Component 2 : Energy Services Delivery. This component focuses on rural electrification and will provide support,(a) to develop an institutional tool through the strengthening of the implementation agency, Agence Malienne dlenergie Rurale, for the promotion of energy services in rural areas. Financial support will be provided to establish, equip, train, and operationalize the AMDER, (b) to develop financial mechanisms : The creation of a Rural Energy Fund (REF) to subsidize initial capital investments by private sector operators, in order to maintain electricity service tariffs at levels compatible with rural consumers capacity-to-pay and minimal private operator-investors return on equity. In order to interest and involve the banking sector right from the start in this initiative, the project will select a commercial bank to host and administer the REF, (c) provision of business development support services to prospective

5 private operators: the local private sector doesn't have the resources, skills and experience to conduct all the studies required to develop RE projects, including the preparation of a long term business plan. The AMDER will provide technical and financial assistance to meet those needs for prospective private operators, (d) to provide technical assistance and training opportunities to the majority of players in the new RE institutional framework. The TA activities will focus on providing the AMDER with the required skills to implement the GOM's RE strategy, (e) to promote the development of the PV market and the use of local and renewable energies in general through the opening-up of the institutional market (health and community centres, schools) for solar PV systems to bulk-supply competitive procurement to achieve cost-reduction and increased sales of these systems. Financing for these systems will be from donors andlor GoM, the GEF grant making up the difference. lnvestments in solar PV systems will target two markets (i) households in the peri-urban areas of cities; and, (ii) households as well as commercial/institutional customers in the rural areas; the non-household part of this market is likely to be mostly grant-driven, with grant financing coming largely from donor projects in other sectors (rural development, education, and health). The latter (institutional) market also offers opportunities to combine ICT 'connectivity" with the provision of solar electricity in rural areas, and to offer "an electrons package" (i.e., solar electricity and lcts powered by it) to institutional customers. GEF funds will finance both the equipment subsidy and the costs of monitoring and evaluation systems, (f) to develop "adaptiven demonstration projects : to test both the institutional and financing mechanisms to sustain rural energy schemes. (g) support specific innovative pilot projects: lnvestments will be made in biomass-based energy production systems such as: (i) Plant-based fuels for multifunction platforms, and (ii) biomass agro-residues for village-scale power generation and cogeneration using small modular bio-power systems, whenever appropriate and costeffective. Both classes of technologies are complementary to PV systems, as they can provide shaft horsepower, thermal energy, and AC power at levels of peak power and daily energy supply consistent with the needs of rural communities and enterprises, and at unit costs well below those for PV systems. The biomass power generation schemes will build on an existing multifunction platform project of UNDP (focused on rural economic productivity), and will include support for pilot installations, monitoring, and evaluation activities. (h) for the expansion of the two existing DSC in their current perimeter ( DSC Yelen Kura of the cooton zone and DSC of the river area): will also support the development of these DSC through capital subsidy and other relevant mechanisms for them to increase their coverage. Initially, their initial customer base, referred to in their business plan, was estimated at 6,000 customers and they have been able to provide services to close to 1,000 clients because of financial constraints. The project team and these two DSC are currently discussing to better understand the issues and barriers for market increase and identify sound solutions, compatible with the Bank operational and procurement guidelines, to address those. (j) to conduct energy services needs assessments in the health, education, agriculture

6 sectors. (k) to prepare and launch 2 to 4 new pilot operations to test the organisational structure being put in place. (I) fine tune and strengthen the institutional framework ;mainstreaming the successful pilots and accelerate investments and increase the regional coverage (iii) Component 3: Household Energy. The household energy component will build on achievements of the previous Household Energy Projet cofinanced by the GEF and IDA. 'This follow up intervention is intended: (a) to encourage Government agencies to withdraw themselves from day to day project execution in the household energy sector to a role where they formulate policies and strategies, and monitor and evaluate activities of the sector; (b) to transfer the management of forest resources to local communities by promoting community based forest management initiatives which will include the introduction and the promotion of efficient charcoal production technologies; and, (c) to empower local communities, NGOs and the private sector to operate demand side interfuel substitution initiatives such as the manufacturing, commercialization and dissemination of improved (wood, charcoal) stoves as well as kerosene and LPG stoves. Woodfuel taxes will be levied in the villages and compliance will be high because of the inherent benefits at the village level. Taxes collected will contribute to fund basic modern infrastructure services and income derived from activities of this component will help participating local communities afford modern infrastructure services. 10. Specifically, Under Component 2, subprojects will be financed that would require new infrastructure such as for example, the provision of rural electricity to new areas will require the expansion of existing electricity grids or the laying out of new grids. This would require the acquisition of Land. Under Component 3 for example, the promotion of sustainable forest management methods would require either the loss, denial or restriction of access to certain areas of a forest for firewood cutting and charcoal production. However, with a such a low average population density of 9.2perons/km2, as is the case in Mali, significant efforts could be made in the design and screening stages of the sub projects to select these sites to avoid or minimize impacts on people, land and property and other economic resources, as far as possible. 11. Notwithstanding, land acquisition that may lead to either the physical displacement of people or their loss, denial or restriction of access to economic resources ( such as farm land and/or trees for example) and therefore to involuntary resettlement and compensation of people seems inevitable in some cases in this project. When this occurs, relevant provisions in the applicable laws in Mali such as the "Ordonnance No du Mars 2000, Portant Code Domanial et Foncier" and the World Banks Operational Policy, OP 4.12 on Involuntary Resettlement will be triggered. 12. The GoM is not required to prepare a Resettlement Plan at this stage since the subprojects and landlareas affected have not yet been identified. However, The GoM is required by Bank policy to prepare a (RPF) to be publicly disclosed in Mali and at the infoshop at the Bank. The date for disclosure incountry and at the infoshop at the Bank must precede the date for appraisal of the project.

7 13. The RPF establishes the resettlement and compensation principles, organizational arrangements and design criteria to be applied to meet the needs of the people who may be affected by the project. The RPF is prepared to the standards of the Governments own policy on resettlement and compensation and the policy of the World Bank, OP When specific planning information on the subprojects becomes available and the landfforest areas neededfaffected are identified, individual subproject ~settlement/compensation plans will be subsequently prepared consistent with this RPF and will be submitted to the Bank for approval before any land acquisition, resettlement, loss, denial of, and restriction to land and any other economic resources or any other impact on livelihood occurs. 14. The RPF covers the following sections; 6. Principles and objectives governing resettlement preparation and implementation. C. A description of the process for prepariqg and approving resettlement plans. D. Land acquisition and likely categories of impact. E. Eligibility criteria for defining various categories of project affected persons. F. A legal Framework reviewing the fit between the laws of Mali and regulations and Bank policy requirements and measures proposed to bridge any gaps between them. G. Methods of valuing affected assets. H. Organizational procedures for the delivery of entitlements, including, for projects involving private sector intermediaries, the responsibilities of the financial intermediary, the government, and the private developer. I. A description of the implementation process, linking resettlement implementation to civil works. J. A description of the grievance redress mechanisms. K. A description of the arrangements for funding resettlement, including the preparation and review of cost estimates, the flow of funds, and contingency arrangements. L. A description of mechanisms for consultations with, and participation of, affected and/or displaced persons in planning, implementation, and monitoring. M. Arrangements for monitoring by the implementation agency and, if required, by independent monitors.

8 Household Energy and Univenral Rural Access Project(HEURA) B. PRINCIPLES AND OBJECTIVES GOVERNING RESETTLEMENT PREPARATION AND IMPLEMENTATION. The impacts due to involuntary resettlement from development projects, if left unmitigated, often gives rise to severe economic, social and environmental risks resulting in production systems being dismantled, people facing impoverishment when their productive skills rkay be less applicable and the competition for resources greater; community institutions and social networks being weakened; kin groups being dispersed; and cultural identity, traditional authority, and the potential for mutual help are diminished or lost. The resettlement policy, in most cases, is not triggered because people are being affected by physical displacement. It is triggered because the project activity causes land acquisition, whereby a physical piece of land is needed and people may be affected because they are cultivating on that land, they may have buildings on the land, they may use the land for water and grazing of animals or they may otherwise access the land economically, spiritually or any other way which may not be possible during and after the project is implemented. Therefore, people are in most cases compensated for their loss (of land, property or access) either in kind or in cash of which the former is preferred. Therefore, the objectives of this policy are the following; (i) Involuntary resettlement and land acquisition should be avoided where feasible, or minimized, exploring all viable alternatives. (ii) Where involuntary resettlement and land acquisition is unavoidable, resettlement and compensation activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to give the persons affected and/or displaced by the project the opportunity to share in project benefits. Affected and/or displaced and compensated persons should be meaniogfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (iii) Affected and/or displaced and compensated persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or levels prevailing prior to the beginning of project implementation, whichever is higher. Affected people, according to the Bank policy, refers to people who are directly affected socially and economically by the bank assisted investment projects, caused by: or (a) the involuntary taking of land and other assets resulting in: a. relocation or loss of shelter b. loss of assets or access to assets c. loss of income sources or means of livelihood, whether or not the affected persons must move to another location; (b) the involuntary restriction or access to legally designated parks and protected areas results in adverse impacts on the livelihood of the affected and/or displaced persons.

9 The resettlement policy applies to all components under the project, whether or not they are directly funded in whole or in part by the Bank. The policy applies to all affected and/or displaced persons regardless of the total number affected, the severity of impact and whether or not they have legal title to the land. Particular attention should be paid to the needs of vulnerable groups among those affected andlor displaced; especially those below the poverty line; the land less, the elderly, women and children, indigenous groups and ethnic minorities or other affected and/or displaced persons who may not be protected through the Government of Mali land compensation legislation. In particular for HEURA, the policy also requires that the implementation of individual resettlement plans are a prerequisite for the implementation of the subproject activities requiring land acquisition, to ensure that displacement or restriction to access does not occur before necessary measures for resettlement and compensation are in place. It is further required that these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, the taking of land and related assets may take place only after compensation has been paid and where applicable, resettlement sites, new homes, related infrastructure, public services and moving allowances have been provided to affected and/or displaced persons. Furthermore, where relocation or loss of shelter occurs, the policy further requires that measures to assist the affected and/or displaced persons are implemented in accordance with the resettlement plan of action. To fully appreciate the impacts that are to be expected, it is critical to comprehend the modus operandi of the sub projects in the two sub-sectors/cornponents( Household Energy and Rural Energy) that are being targeted for intervention in his project. First, on the household energy side, subproject activities would be implemented through management plans agreed upon between villagers and the forestry service of the decentralized region where the forest is located, whereby a village management committee (VMC) is made responsible for the use of the forest. Villagers will then operate in these rural markets under license from the VMC's. The management plan will allow the harvesting of woodfuel using sustainable methods in certain forest areas based on a Forest Management Master Plan prepared by the Government. The master plan basically identifies progressive forest densities and concentrations from high to low thereby forming the basis upon which forest areas are placed under management of the local communities to harvest biomass fuel using sustainable methods. For example, areas of high forest density are allowed more yield than areas of low density. These methods on the supply side include partitioning the forest into zones and placing sustainable harvest control methods characterized by volume quota's and time periods upon which each zone is to be harvested. Furthermore, the communities are taught cutting methods to allow re-growth, species identification to ensure only certain trees are cut and restrictions placed on some species to allow pastoralist use the forests for fodder and other agricultural use such as for produce for food (fruit) and agro-processing (cooking oil).

10 Then on the rural energy side, private operators would be supported to operate outside of the EDM concessionary areas. The expected power generation method is primarily expected to be either of two principle methods using renewable technologies such as solar photo-voltaic (PV) systems and fossil fuel power generation plants. In general PV systems of the type envisaged to provide power for lighting and small outlets like television and radio sets in rural homes are expected to be stand alone individual units, required per houselunit. On the contrary, for power generation sets, the use of grids to transmit low, medium and/or high voltage power to demand points would be required and therefore the construction of stations and sub-stations and overhead transmission lines with right of way protection/access rights would also be required. Therefore, in this project, the implementation of activities in Components 2 and 3 will result in impacts on land and people resulting from; (i) (ii) the implementation of village/forest management plans electricity generation (power stations/sub-stations), transmission and distribution activities of private sector operators. The social impacts from the implementation of villagetforest management plans are positive and negative. Positive impacts include the protection of forest areas from degradation and depletion by reducing unsustainable pressures on forest resources thereby securing the continued critical role the forest plays in the delicate balancing of the ew-systems. Consequentially therefore, better management of the forests and better carbonization techniques will ensure the prevalence of sustainable exploitation of forest resources thereby securing and preserving for the foreseeable medium term the source of rural incomes and livelihoods and continuing to meet the demand for affordable household energy. The organization of woodfuel harvesting and marketing in this way raises the overall levels of rural income and rural economic performance. Negative social impacts of village management plans for the forests would invariably be the reduced livelihoods and incomes on the individuals and households who would lose access ( maybe just temporary as zoning goes on), be denied or restricted access to areas in the forests, certain species of trees, or whose production costs maybe increased due to new management requirements for woodfuel harvesting and/or charcoal carbonization. When this occurs, people, households and communities will be impacted and resettlement and compensation cannot be avoided and OP 4.12 will be triggered even though no one may have to physically move or relocate to another location. The social impacts from activities in the rural energy side of the project are also positive and negative. The intended proliferation of sub projects in this way in which private owned power companies will be mushrooming at the community levels would significantly increase access to rural electricity thereby improving standards of living, rural trade and manufacturing, income and economic activity creating training and employment opportunities and would be a welcome positive social impact. Negative social impacts from rural electrification would be due to land acquisition for the installation of power sub/ stations, overhead lines and grids. This may also involve loss, denial or restriction of access to land resources by farming communities, such as cotton farmers or pastoralists. When this occurs resettlement and compensation cannot be

11 avoided and OP 4.12 will be triggered even though those affected may not have to physically move to another location. It is particularly important to neutralize to the extent possible any sodo-economic pressures in the communities that are likely to be exacerbated by involuntary resettlement, by facilitating the participation of those impacted in the sub project activities. Therefore, offering impacted people the opportunity to continue to participate in the planning process that would lead to the preparation of Resettlement Plans is mandatory and Section L of this RPF deals with this requirement. Offering impacted people the opportunity for employment during the construction of the power infrastructure, will provide additional income generating opportunities to a significant number of impacted persons who may potentially have to be resettled. Also, it should be made mandatory in the village management plans for management of forest resources that people who are impacted should be given a license to participate in the rural markets. Therefore, the opportunity for local employment and provision of license is being taken advantage of in this RPF, by including it for discussion in the consultative process with the affected communities. Furthermore, it is worthy to note that rush migration to selected landkites and forest areas may occur by those wishing to take advantage of the rules of eligibility described earlier in this Section. Were this to happen it would bring to bear additional pressures on the whole planning process and compensation budgets. This has major considerations therefore when establishing the cut-off dates. A major object of this RPF is to ensure that affected individuals and households, and affected and/or displaced communities are meaningfully consulted, have participated in the planning process, are adequately compensated to the extent that at least their predisplacement incomes have been restored and that the process has been a fair and transparent one. C. DESCRIPTION OF THE PROCESS FOR PREPARING AND APPROVING RESETTLEMENT PLANS. As stated earlier, the World Bank policy on Involuntary Resettlement OP 4.12 is triggered because the HEURA Project will finance productive investments that would require land acquisition leading to loss, denial or restriction of access to economic resources. Since the location of these sites were not known at the time of the preparation of the project, the preparation and disclosure of this RPF is a conditionality for appraisal of this project. However, during implementation of this project, in a process defined here below, the selection of these sites would be made. When that happens, land would be acquired or access to economic resources may be lost, denied or restricted and people may then be affected. At that stage, OP 4.12 calls for the preparation of individual Resettlement Plans that must be consistent with this RPF. To address the impacts under this policy, resettlement plans must include measures to ensure that the affected and/or displaced persons are; (a) informed about their options and rights pertaining to resettlement.

12 (b) (c) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives. And provided prompt and effective compensation at full replacement cost for losses of assets and access attributable to the project. The first stage in the process of preparing the individual resettlement plans is the screening process for the sub project activity requiring land or addressing issues in or near forests that are causirlg resettlement. The Screenina Process for approval of subproiects and resettlement plans. This process will lead to the identification of sub projects that may potentially involve resettlement issues. In pursuant thereof, for sub projects on; (i) (ii) (iii) 'The Household Energy side, the Village Management Committees (VMC) who will be assisted by service providers will be responsible for screening their subproject Forest Management Plans (FMP) before submitting them for approval to the Department of Forestry of their Region who work closely with and assisted by Agence Malienne dlenergie Rurale (AMDER), the Cellule Combustibles Ligneux (CCL) and Cellule Energie Domestique (CED). This approving group would be collectively referred to as Household Energy Approving Group (HEAG) for the purposes of this RPF. Prior to sending their FMPs for approval, the VMC's assisted by their service providers will determine whether their FMP's trigger the resettlement policy. The triggering of the resettlement policy will be one criterion by which VMC's can re-work their FMP's so that it does not trigger the resettlement policy. Alternatively, if on triggering the resettlement policy the VMC's wish to proceed with their sub project then a socio-economic study and a census is to be carried out for each forest area under the FMP requiring loss, denial or restriction of access to users of the forest resources. The carrying out of the socio-economic study and the census would be the first opportunity for consultations with potentially affected people to sensitize them on the subproject needs and on their willingness to participate in the subproject activities. Using the findings of the socio-economic studies and the census, the VMC's will identify affected people on the individual and household levels and vulnerable groups and to calculate household incomes. These studies are to be carried out by the VMC's assisted by service providers. The purpose of the Socio-economic study is to collect base line data on each population within the chosenltargeted siteslforest areas thereby enabling the social assessment of potentially affected populations/wmmunities. The socio-economic study would focus on the identification of stakeholders (demographic data), the participation process, identification of affected people (including owners and users of land) and impact on their

13 property and their production systems, the institutional analysis and the system for monitoring and evaluation. Detailed calculation of individual and household economies and identification of all impacts will be undertaken as part of the socioeconomic study and be the determinant in the potential compensation process. Standard characteristics of the affected households, including a description of production systems, labor, and household organization, and baseline information on livelihoods (including production levels and incomes derived from both formal and informal economic activities) and standards of living and health status of the affected andlor displaced population. Under this study a comprehensive base line census would be carried out to identify potentially affected people on the individual and household levels, vulnerable groups (women, children, the elderly, female headed households. On completion the socio- economic study and the baseline census the VMC's will prepare a resettlement plan for each sitefloretst aredsubproject. Where the impacts on the entire affected and/or displaced population are minor (i.e. if affected people are not physically displaced and less than 10% of their productive assets are lost) or fewer than 200 people are affected and/or displaced, then the bank may approve the preparation of an Abbreviated Resettlement Plan (ARAP). The contents of the ARAP are to be : (a) a census survey of affected andlor displaced persons and valuation of assets. (b) Description of compensation and other resettlement assistance to be provided. (c) Consultations with affected andlor displaced people about acceptable alternatives. (d) Institutional responsibility for implementation and procedures for grievance redress (e) Arrangements for monitoring and implementation, and (f) A timetable and budget. For impacts that are not considered minor, the preparation of a Resettlement Plan (RAP) is required for each site. World bank OP 4.12 Annex A, article 25 sets the requirements of the RAP to include; (a) Baseline census and socio-economic survey information (b) Specific compensation rates and standards (c) Policy entitlements related to any additional impacts identified through the census or survey (d) A description of the resettlement sites and programs for improvement or restoration of livelihoods and standards of living (e) Implementation schedule for resettlement activities (f) Detailed costs estimates. The resettlement plans would then be forwarded for screening (i.e. compiiance check with this procedure) and approval to the HEAG in compliance with the project institutional and administrative requirements. All approved subprojects that trigger OP4.12 and their resettlement plans would be subject to the final approval of the World Bank to ensure compliance with bank safeguards. Thus

14 ensuring that before land Is actually acquired or access to resources is lost, denied or restricted, that the individual resettlement plans are consistent with this RPF. (iv) (V) For subprojects on the Rural Energy side, the Private Sector Bidder (PSB) as part of their bid will screen their own proposals before submitting them for approval to the Agence Malienne dlenergie Rurale (AMDER) who will work closely with and assisted by the revamped and strengthened Regulatory Commission and the National Directorate for Energy (DNE). This approving group would be collectively referred to as Rural Energy Approving Group (REAG) for the purposes of this RPF. The PSB's may re-work their bids if it triggers the resettlement policy so that the sub project activity requiring land does not trigger it. However, they may proceed to submit their bids if their sub project activity requiring land triggers the resettlement policy should they wish to do so. Their bids may be given conditional acceptance subject to compliance with the provisions of this RPF. Once conditionally accepted the PSB would have to identify their selected land sites and location. If any sub project activity requiring land that is chosen or needed, triggers the resettlement policy, the PSB would have the first option of rejecting that land and choosing other land that does not trigger the policy. If the policy is no longer triggered by the sub project activities on chosen sites then final and unconditional approval will be given at this stage for the acceptance of the PSB bid. (vi) Alternatively, if on triggering the resettlement policy and securirlg conditional acceptance the PSB wish to proceed with their sub project activities on thatlthose land areas then a socio-economic study and a census is to be carried out on each population on each land site1 area to be acquired andlor requiring loss, denial or restriction of access to users of the land resources. The carrying out of the socio-economic study and the census would be the first opportunity for consultations between the PSB and the potentially affected people to sensitize them on the subproject needs and on their willingness to participate in the subproject activities. Using the findings of the socio-economic studies and the census will identify affected people on the individual, household level and vulnerable groups and to calculate household incomes. These studies are to be carried out by the PBS. The purpose, exact requirements and nature of theses studies is as outlined in (iii) above On completion of the socio- economic study and the baseline census the PSB will prepare a resettlement plan for each sitelsubproject. Whether a RAP or ARAP is required would also be as required by (iii) above. The resettlement plans would then be forwarded for screening and approval to the REAG in compliance with the project institutional and administrative

15 requirements. All approved PSB subprojects that trigger OP4.12 and their resettlement plans would be subject to the final approval of the World Bank to ensure compiiance with bank safeguards. 'Thus ensuring that before land is actually acquired or access to resources is lost, denied or restricted, that the individual resettlement plans are consistent with thls RPF. Only once thls process is completed, would a final and unconditional approval of the PSB's bid be given for project implementation. Before the decision to approve a FMP or a PSB is taken, the HEAG or REAG will decide whether to approve or disapprove the resettlement plan of the sub project taking into consideration the overall environmental and social screening process that has been applied for each sub project and that of the proposed mitigation measures, if any. This process of identrfying land, consulting potentially impacted people and carrying out a socio-economic study may have to be iterative, simply because the mitigation measures (i.e. the compensation levels) may be too costly in terms of the amount paid as compensation and the overall number of people impacted. This would have to be determined by the VMC's or PSB's who may also wish to consider the selection of alternative sites to propose for approval. However, irrespective of whether the process of identifying potential landlsites is pursued iteratively or a number of sites are identified simultaneously, the process for the selection must be as described above. Capacity will be built at the community levels( within the VMC's, PSB's, The Forestry Service at the central and regional levels, The Regulatory Commission, AMDER, DNE and CCL, i.e the HEAG and REAG) by providing technical assistance to allow communities themselves to screen their subprojects for environmental and social concerns. This training will also include the capacity to develop mitigation measures to meet environmental and social impacts and to prepare implementation of such measures. Local service providers that are required to work with the VMC's and PSB's will be targeted for training to enhance their skills and to produce more of them. This would build capacity at the community level which is crucial for success of this project. D. LAND ACQUISITION AND LIKELY CATEGORIES OF IMPACT At this stage it is not possible to estimate the likely number of people who may be affected since the subprojects have not yet been prepared. However, the likely affected andlor displaced persons can be categorized into these 3 groups, namely; (i) Affected Individual - An individual who suffers loss of assets or investments, land and property andlor access to natural andlor economical resources as a result of the subproject activities and to whom compensation is due. For example, an affected individual is a person who farms a land, pastoralists whose routes have been altered, or a person who has built a structure on land that has been demarcated and is now required by the subproject.

16 (ii) Affected Household - a household is affected if one or more of its members is affected by project activities, either by loss of property, land, loss of access or otherwise affected in any way by project activities. This provides for: (a) any members in the households, men, women, children, dependent relatives and friends, tenants (b) vulnerable individuals who may be too old or ill to farm along with the others (c) members of households who cannot reside together because of cultural rules, but who depend on one another for their daily existence (d) members of households who may not eat together but provide housekeeping, or reproductive services critical to the family's maintenance, and (e) other vulnerable people who cannot participate for physical or cultural reasons in production, consumption, or co-residence. In the local culture, members of production, consumption, and co-resident groups form overlapping, often incongruent sets of people who may exchange domestic or farming services on a regular basis even though living separately. Compensation will not be limited to people who live together in a co-resident group, since this might leave out people whose labor contributions are critical to the functioning of the "household". For example, among polygamous settings, each wife has their own home. (iii) Vulnerable Households - vulnerable households may have different land needs from most households or needs unrelated to the amount of land available to them. This provides for; a) unmarried women - may be dependent on sons, brothers, or others for support. Since an affected individual is able to name the person with whom sthe is linked in dependency as part of the household, resettlement will never sever this link. b) Elderly - elderly people farm as long as they are able. Their economic viability does not depend on how much land they farm or how much they produce because, by producing even small amounts of food to "exchange" with others, they can subsist on cooked food and generous return gifts of cereal from people such as their relatives and neighbors. Losing land will not affect their economic viability. They will have cash or in-kind replacements to exchange. For future production they need access to only a small parcel of land. What would damage their economic viability is resettlement that separates them from the person or household on whom they depend for their support. The definition of household by including dependents avoids this. c) Street Children - Despite the laws of the Mali and International Labor Organization (110) prohibiting the exploitation of children, it is a reality that street children are either in paid employment or are on the streets in Malian cities and towns. They tend to live in close proximity to large towns and cities. If they are impacted by this project in a way that means they have to be physically relocated or their livelihoods are negatively affected, their compensation cannot be in cash. They

17 would have to be put in a Unicef program or registered with one of the many children's charities that are operating in Mali today. Their compensation would take the form of paying for their rehabilitation and training to acquire useful vocational skills. d) Women - may depend on husbands, sons, brothers or others for support. In many cases too, women are the main breadwinner in their household. They need relatively easy access to health service facilities, as mothers and wives. Some women live in a polygamous situation in Mali and this requires special attention as women are central to the stability of the household. They should not be resettled in a way that separates them from their households as the very survival of their households may depend on them. Their compensation must take into account all these factors. e) Small-scale female farmers- are also vulnerable because they may not have men available within the household to cany out male specific land preparation tasks such as ringing trees. Either male relatives in other households help them voluntarily, or they hire men for cash, beer or food. Land compensation specifically includes the labor costs of preparing a new land, so these women are provided for by the compensation plan. f) Non-farming females- these earn income from other sources andlor depend on relatives for "exchanges" of staple foods. Since they do not farm they will not be affected by the sub-projects need for agricultural land. If a building of theirs lies on land needed by a subproject, they will receive replacement cost compensation. If someone on whom they depend is resettled, they are protected because the resettler can name them as part of the household. These household types are not mutually exclusive, for example an elderly woman may be unmarried (or widowed), and the street children may be also be small female farmers(seasonal1y). E. ELIGIBILITY CRITERIA FOR DEFINING VARIOUS CATEGORIES OF PROJECT AFFECTED PERSONS The Bank's OP4.12 suggests the following three criterion for eligibility; a) Those who have formal rights to land (including customary land, traditional and religious rights, recognized under Malian Law. b) Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets provided that such claims are recognized under the laws of Mali or become recognized through a process identified in the resettlement plan. c) Those who lose other economic resources such as trees, agricultural produce on cultivated fields, etc, and or have their access to these economic resources denied or restricted.

18 d) Those who have no recognizable legal right or claim to the land they are occupying, using or getting their livelihood from. Those covered under a) and b) above are to be provided compensation for the land they lose, and other assistance in accordance with the policy. Persons in category c) are compensated for loss of economic resources in accordance with this RPF. Persons covered under d) above are to be provided with resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date established by the HEAG or REAG in close consultation with the VMC's or PSB respectively, subject to "no objectionn of the Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in a), b) or c) above are to be provided with compensation for loss of assets other than land. Therefore, it is clear that all affected persons irrespective of their status or whether they have formal titles, legal rights or not, squatters or otherwise encroaching illegally on land, are eligible for some kind of assistance if they occupied the land before the entitlement cut-off date. Persons who encroach the area after the socio-economic study (census and valuation) are not eligible for compensation or any form of resettlement assistance. Eligibility for Community Compensation Communities ( districts, 'arrondissementsn, regions, "cercles", communes, towns and villages) permanently losing land and/or access to assets under customary rights will be eligible for compensation. Method to Determine the Cut - Off Dates The entitlement cut-off date refers to the time when the assessment of persons and their property in the subproject area is carried out, i.e. the time when the subproject area has been identified and when the socio-economic study is taking place. Thereafter, no new cases of affected people will be considered.the establishment of a cut-off date is required to prevent opportunistic invasions /rush into the chosen land thereby posing a major risk to the project. Therefore, establishment of a the cut-off date is of critical importance. When the HEAG or REAG approves the subproject, they will meet with the VMC's or PSB's respectively to discuss and agree on a program of implementation. They will also chose tentative cut-off dates. The dates would then be communicated to the community through the VMC or PSB. The local administrative heads such as chef de village, will play a crucial role in identifying users of land since most of them would have acquired their customary rights to use the land from their local customary heads.

19 The Government of Mall Resettlement Pollcy Framework F. A LEGAL FRAMEWORK COMPARING THE BORROWER LAWS AND REGULATIONS WITH THE BANK POLICY REQUIREMENTS AND MEASURES PROPOSED TO BRIDGE ANY GAPS BETWEEN THEM. LAND TENURE AND OWNERSHIP Land in Mali is either State owned or privately owned. Land belonging to the State is referred to as National Domain and is divided into Public Property of the State and Private Property of the State. It is expected that most of the land need for the sub projects would be in the National Domain. The National Domain. Public Property of the State. Public Property of the State is inalienable and indefeasible. Rights of occupation over Public Property may be granted under a permit or contract of occupation. National Public Property includes water flows, lakes, ponds, and springs; islands, isles, sandbanks, and riverbanks formed in rivers; underground streams, mineral and mining deposits, and classified forests. Artificial Public Property includes navigation and irrigation channels, waterways, drainage and sewer systems; communication means, airports, telecommunication systems, power generation works for public utility, and protective devices such as signs; geodesic and topographic boundaries and landmarks, national defense works and their perimeters of protection, public monuments, and collections or objects of cultural interest belonging to the state or to a subordinate public entity. Customary rights of customary users of Public Properly of the State are recognized. The loss of the use of such lands entitles the customary users to fair compensation for any investments they have made to the land as well as provision of other land elsewhere upon which the user can carry out agriculturalleconomical activities and reconstruct the income of the household. Private Property of the State. Any land belonging to the State that is not in the Public Property of the State falls within the Private Property of the State. This includes vacant and unregistered land, land whose owner cannot be found or that has been abandoned by its owner, and unusable or inaccessible land that becomes available for use as a result of public works. Customary rights of customary users of Private Property of the State are recognized. The loss of the use of such lands entitles the customary users to fair compensation for any investments to the land as well as provision of other land elsewhere upon which the user can carry out agricultural/economical activities and reconstruct the income of the household.

20 Privately Owned Land Private ownership may be established by registering the land with the Land Registry to obtain a land title, which is referred to as Titm Foncier. While registration is optional, a registered title is definitive and unassailable. Private Property of the State may become privately granted land. A private citizen may purchase land by way of a concession, the concession holder must comply with the conditions set out in the concession text. After the holder has demonstrated compliance with the concession conditions, the State may grant ownership of the land to the holder. The holder must then register the title to the land with the Land Registry to become the official owner. Key Features of Privately owned land are; Derives its legality from the constitution and its incidents from the written laws. Is created either by contract or by operation of the law. It involves the holding of land in perpetuity or a term fixed by a condition of the Titre Foncier The owner has security of tenure and a propriety interest in the land. Customary rights do not exist over registered land. The landowner is entitled to fair compensation for the land itself as well as any investments. LAND TENURE UNDER CUSTOMARY RIGHTS Customary Rights over Land Use Customary rights among ethnic groups in the project area are, on the whole, similar. Most of the people belong to one, over-arching ethnic group, known as the Bambara. Under Customary Law, a village controls a certain amount of land whose boundaries are not precise in the surveyor's sense, but nevertheless are widely accepted. These boundaries contain the village, its farmlands and fallow, and regularly exploited bush. Bush that is not regularly used by any village does not belong to anyone and is available for use by anyone. Anyone wishing to farm in uncontrolled bush should ask permission of the village chief. If a group wants to settle in the bush controlled by another village they must seek permission, by majority approbation, of the host village. The host village will determine the land they may occupy. If an existing village feels that immigrants will put too much pressure on their land, they can refuse ( and often have) to grant any land. Likewise, any individual outsider seeking to farm within another village's boundaries must first have a sponsor within the village. If the outsider is socially acceptable, or if villagers feel there is not enough land to go around, these issues are made clear to the outsiders host before the host becomes involved as a "sponsor". Just as an outsider must have a sponsor within a village, a woman who marries into the village is also an outsider, so she acquires land through her husband. Women are not, however, a disadvantaged group as far as land is concerned. First, women have equal rights to land in their natal village. Since many marriages are within the same village,

21 most women have ready access to their own land. Second, any woman can clear virgin bush wherever she lives, and claim customary rights over it in the same fashion as a man. Nevertheless, the ease with which women can get land in their own village leads many widows to return to their village of origin. Tradltional Categories of Land Local dialects usually categorize land in three ways according to its use Inhabited, cultivated, and fallow land, Exploited bush, and Bush that is not frequently exploited. These uses are categorized by rights which range from individual to community rights. Inhabited and cultivated land is exploited by individuals. Clearing bush for land requires heavy labor and takes from September to the start of the April -June season. Customary rights recognize the labor that an individual invests in clearing and maintaining land. The farmer has control over the land s/he cleared as long as sfhe keeps it in cultivation. Among all ethnic groups, immediate blood kin also have residual rights to any land a recently deceased person was cultivating. If there are no close classified relatives, or once the individual ceases to use this land, it begins to revert back to the community. For this reason, an individual may not relinquish land s/he is using to an outsider without the general agreement of the village. As to fallow land, labor invested is still recognized to some extent. Anyone else who wants to use recent fallow should ask the farmers permission first. Communities differ as to how long the bush must be in fallow before it returns to the community land pool and any villager can use it freely. This ranges from about 10 years, or 15 to 20 years, to within an adults memory. In some conservative communities, cleared land left to fallow can be inherited by ones descendants. This land will, nevertheless, revert back to the village land pool if the direct descendants die. Exploited bush is considered community land. If a village moves, it retains residual rights to its exploited land. Others can use it but should check first with the village. When a village falls apart or dies out, its land returns to the village wide pool. Bush that is not regularly exploited may be used by anyone. However, bush may contain trees that have been protected by individual farmers who once farmed this land. These farmers would have first claim to the fruits of these trees, even though the land has reverted to bush. The key features of Customary Land Tenure are: Land administration is governed by rules generally accepted as binding and authoritative by the class of persons to which it applies. That is customary tenure is not governed by written law.

22 Land is owned in perpetuity. Customary occupants are occupants of former public land and occupy the land by virtue of their customary rights; they have propriety interest in the land and are entitled to some form of "certificatesn of customary. Summary of Relevant Laws and Decrees of Mali Following a review of the relevant laws of Mali that are concerned with land, here is a sample of the relevant laws; Act 23 of 23 July 1967 relates to state property. This law defines public and private properties. The property of the state includes land, water and lakes. It deals with the management of properties, utilisation of land and the protection of property. It defines the matriculation procedure, the demarcation of land, title deeds, and transfer of property. Decree No PR of 1" August 1967, on the application of the law relating to the status of state property. This decree applies to the law above (No 23). Decree 24 of 27'h July 1987 deals with the regulation of title deeds and customary laws Decree No 25 of 22"' July 1967 on limitations of land rights, expropriation and evacuation. Article 18 of this law indicates that the targeted population will have recourse to compensation, even if they were there illegally. Comparison between Land Law in Mali and Bank OP4.12 Whereas the law relating to Land administration in Mali is wide and varied, entitlements for payment of compensation are essentially based on right of ownership ( i.e, land titles and andlor customary ownership). The Bank OP is fundamentally different from this and states that affected persons are entitled to some form of compensation whether or not they have legal title if they occupy the land by a cut -off date. 'Therefore, all land to be acquired by the VMC's and PSB's for this project would be so acquired subject to the Laws of Mali and the Bank OP4.12. Where, there is conflict, the Bank OP must take precedence and the purpose for this is to ensure that no project affected person is poorer after the project than he or she was before the project and indeed reducing poverty and improving the living conditions of people in the project area.

23 Ttle Government of Mali Comparison of Mali Law and World Bank OP4.12 regarding compensatlon Category of PAPS1 Type of Lost Assets Land Owners Land Tenants Land Users Owners of "Non permanent" Bulldhgs Owners of 'Femanenf'bulldings Perennial Cmps Mali Law Cash compensation based upon market value of unlmpmved land. Entitled to compensation basecl upon the amount of rlghb they hold upon land Not enutled to compensation for land, entltled to compensatlon ibr crops. Silent on thls issue Valuation based on depreciated market value. Cash compensation based marfret value on World Bank OP4.12 Recommends land-for-iand compensetlon. Other compensation Is at replacement cost. Are entitled to some form of compensatlon whatever the legal recognition of Ulelr occupancy. Entitled to compensatlm for crops, may be entitled to replacementland and Income must be ~~ to pre-pmject levels at least Entitled to in-ldnd compensation or cash compensaffon at fuu replacement cost including labor and relocatlon expenses, prlor to displacement. Entlffed to ln-kind compensatlon or cash compensauon at full replacement cost Including labor and relocatlon expenses, prlor to displacement. - approved by the Bank and disclosed in Mall and at the Bank Infoshop. G. METHODS OF VALUING AFFECTED ASSETS. Valuations methods for affected land and assets would depend on the type of asset. The three land asset types identified under Mali law in this policy framework are; i) State owned Land - public or private. ii) Privately owned Land iii) Assets held under customary rights. State owned land would be allocated free (perhaps except for processing and registration fees) the sub project would be expected to pay to acquire land in this category in cases where the state-owned land is being used by individual farmers. This is because, although state owned, the land may be used by individuals andlor household farmers. Privately owned property, as well as state owned land would have to be acquired at the market value. The guiding principle is that whoever was using the land to be acquired by the sub project, would be provided other land of equal size and quality. However, according to Mali law, assets held under customary rights on state owned land would have to be valued according to the following method and compensation paid for. The sub projects would compensate for assets and investments, including land labor, crops, buildings, and other improvements, according to the provisions of the resettlement plan. Compensation rates would be market rates as of the date and time that the replacement is to be provided. The current prices for cash crops would have to

24 be determined. Compensation would not be made after the entitlement cut off date in compliance with this policy. Under customary law land belongs to chiefs, communes, "cercles", and villages. Only structures on the site belong to individuals. The permanent loss of any such land will be covered by community compensation which will be in-kind only. However, because the World Bank policy on resettlement, (OP 4.12), makes no distinction between legal and customary rights, not only assets and investments will be compensated for, but also land. Thus, a customary land owner or land user on state owned land, will be compensated for land, assets, investments, loss of access etc. at market rates at the time of loss. Compensation Payments and Related Considerations. Individual and household compensation will be made in cash, in kind, and/or through assistance. The type of compensation will be an individual choice although every effort will be made to instill the importance and preference of accepting in kind compensation if the loss amounts to more than 20% of the total loss of subsistence assets. Cash Payments In-Kind Compensation Asslstance FORMS OF COMPENSATION Compensation will be calculated and paid in FCFA. Rates will be adjusted I for inflation. Compensation may include items such as land, houses, other buildings, buildina materials. seedlinaa, -. aarlculturel - ln~uts and flnanclal credlts for 1 equipment ~ommunity compensation may l"elude publlc Infrastructure. ) Asststance may Include movlng allowance, transportation and labor Making compensation payments raises some issues regarding inflation, security and timing that must be considered. One purpose of providing in-kind compensation is to reduce inflationary pressures on the costs of goods and services. Local inflation may still occur, thus market prices will be monitored within the time period that compensation is being made to allow for adjustments in compensation values. The question of security, especially for people who will be receiving cash compensation payments needs to be addressed by the government. Local banks and micro finance institutions should work closely with government at this level to encourage the use of their facilities which will positively impact the growth of the local economies. The time and place for in-kind compensation payments will be decided upon by each recipient in consultation with the project implementation unit. Monetary payments should be paid at a time in relation to the seasonal calendar. Compensation for Land Compensation for land is aimed at providing a farmer whose land is acquired and used for sub project purposes with compensation for land labor and crop loss. For this reason, and for transparency, "land" is defined as an area: In cultivation l Being prepared for cultivation, or Cultivated during the last agricultural season (March-November of the previous year)

25 Un-used land This definition recognizes that the biggest investment a farmer makes in producing a crop is his or her labor. A farmer works in hislher land,most of the months of the year. The major input for producing a crop is not seed or fertilizer, but the significant labor put into the land each year by the farmer. As a result, compensation relating to land will cover the market price of labor invested as well as the market price of the crop lost. The owners of un-used land would receive compensation for value of the land itself (not only for labor invested or crops lost). A farmer who loses land will be compensated in-kind by the VMC or the PSB by providing himlher with another land of equal size, market value and within relatively the same travel distance in the local community. In the absence of this, the farmer who loses land will be compensated in cash at the market value of the land lost to assist himther acquire new land upon which to farm. This process would be done consistent with the delivery of emoluments and all other processes described in this RPF. Land measurement For purposes of measuring land, the unit of measurement would be that which is used and understood by the affected farmers. Therefore, if a traditional unit of measurement exist, that unit should be used. If a traditional unit of measurement does not exist, then it is recommended that land should be measured in metres or any other internationally accepted unit of measurement. However, in such an event, the unit that is being used must be explained to the affected farmers and must somehow be related to easily recognizable land features that the communities are familiar with, such as using location of trees, stumps, etc. as immovable pegs. The most important concern of this exercise is to ensure that the affected person is able to verify using hidher own standarddunits of measurement for him/herself, the size of land that is being lost. Ensuring that this occurs maintains transparency in the system and will thus avoid subsequent accusations of wrong measurements or miscalculation of areas. Calculation of land compensation rate All "land" to be compensated using a single rate regardless of the crop grown, except for cotton land grown under agreement with CMDT (cotton marketing company operating in Mali). This rate incorporates the value of crops and the value of the labor invested in preparing a new land. Determining compensation using a single rate creates transparency because anyone can measure the area of land for which compensation is due and multiply that by a single rate known to all. This approach also allows assignment of values to previous year's land (land in which a farmer has already invested labor) and land that have been planted but have not yet sprouted. Further, it avoids contention over crop density, quality or mixed cropping. For cotton land grown under management with CMDT, the value of the cotton crop will be compensated at the CMDT rate. The value of the labor invested in preparing the cotton land will be compensated at the same rate per land as for non CMDT land. The rate used for land compensation is to be updated to reflect values at the time compensation is paid. The

26 following example, which is based on 2003 data, derives a total value for a one hectare land- from the value of the crops on the land and the value of labor invested in preparing a replacement land. EXAMPLE OF METHOD TO BE USED TO DETERMINE A COMPENSATION RATE FOR LAND' (Based on ZOO3 data. FCFA payments will be revlsed to reflect crop values and labor rates In effect at the time of compensatlon) Item Compensated Value of Crops -Staple Crops x 0.8 Cash Crops x 0.2 Basls of Value Average of the highest 2003 official and market survey land prices per ha of staple food crops ( millet, peanuta, ~ornhoum etc.1,plus -.. cash I crops (eg. ~oiton). Labor invested 1 Labor costs of preparlng a 1 I replacement land. I 1 Total I Replacement value of crops plus ) I ( labor I I *Note: Thla example assumes a one-hectare land and is In addltlon to compensation for the land itself to the owner. Crop values will be determined based on: FCFAlha A combination of staple foods and cash crops. Specifically, the ratio of land that a farmer typically has in food crops and cash crops is used to determine the chances slhe would lose food crop rather than a cash crop income. The value of stable crops to be taken as the highest market price reached during the year, in recognition of these factors: Although most farmers grow staple crops mainly for home consumption, they always have the option of selling these crops to take advantage of the market. - Farmers most often purchase cereals when they have run out, during the "hungry season" when prices are high. Compensating at a lower value might put the individual or household at risk. Averaging the highest price of staple foods yields a high per ha value that reimburses for the vegetables and other foods that are commonly inter-cropped with staples, but are almost impossible to measure for compensation. The labor cost for preparing replacement land is calculated on what it would cost a farmer to create a replacement land. This value is found by adding together the average costs of clearing, plowing, sowing, weeding twice, and harvesting the crop. Labor costs will be paid in FCFA, at the prevailing market rates. i

27 The following table presents an example of a compensation schedule for a one-hectare land. The FCFA values are based on arbitary labor rates, which will need to be validated at the time payments are made. - Activlty Clear Plough Sow Weed Harvest Total EXAMPLE OF LAND COMPENSATION SCHEDULE OF PAYMENTS Month Paid March May May May November Labor In FCFAlha Rate Costlday x no. of days All agricultural labor activities are included for two reasons. First, because of the need for transparency, all land labor will be compensated for at the same rate. Second, it is difficult to forecast when during the growing season a farmer might need to give up hidher land. Thus, the land compensation covers all investments that a farmer will make. In certain cases, assistance may be provided to land users in addition to compensation payments, for example, if the farmer is notified that hidher land is needed after the agriculturally critical date of March, when slhe will no longer have enough time to prepare another land without help. Assistance will be provided in the form of labor intensive village hire, or perhaps mechanized clearing, so that replacement land will be ready by the sowing dates. The farmer will still continue to receive hislher cash compensation so that slhe can pay for sowing, weeding, and harvesting. Compensation for buildings and Structures. Compensation, will be paid by replacing structures such as huts, houses, farm outbuildings, latrines, and fences. Any homes lost will be rebuilt on acquired replacement land, however cash compensation would be available as a preferred option for structures (i.e. extra buildings) lost, that are not the main house or house in which someone is living. The going market prices for construction materials will be determined. Alternatively, compensation will be paid in-kind for the replacement cost without depreciation of the structure. The project will survey these prices for administrative purposes on an ongoing basis. Compensation will be made for structures that : Exist on land which will be acquired for sub-project purposes, or are Directly damaged by construction activities. Replacement values will be based on: Drawings of individual's home and all its related structures and support services Average replacement costs of different types of homestead buildings and structures based on collection of information on the numbers and types of

28 materials used to construct different types of structures (e.g. bricks, rafters, bundles of straw, doors etc.), Prices of these items collected in different local markets, Costs for transportation and delivery of these items to acquired1 replacement land or building site, Estimates of construction of new buildings including labor required. I COMPENSATION FOR BUILDINGS AND STRUCTURES Buildings and structures will be replaced by an equlvalent structure or, on an exception basis, cash and/or credits will be paid based on replacement costs. Item House Kitchen Stableslshedslpens -. Coops Fence Private Bathing Latrine Open well - Storage building Sun Screen open hutslshades Compensation for Sacred Sites Example Raw or Baked brick Straw or tin roof Varying sizes (small, medium large) Open, closed Cattle, goat, camel, sheep, other Chicken, duck, other Strawlpoles (per unit poles B mat), raw andlor baked br~cklcement blocks (per 2- m length) Replacement latrines will be similar to those currently operational and financed by the bank at health centers, schools. Sacred sites include but not restricted only to altars, initiation centers, ritual sites, tombs, cemeteries. It includes other such sites or placesifeatures that are accepted by local laws (including customary), practice, tradition and culture as sacred. To avoid any possible conflicts between individuals andlor communities the use of sacred sites for any subproject activity, is permitted under this project. Compensation for vegetabie gardens and beehives. These are planted with vegetable and ingredients for daily use. Until a replacement garden starts to bear, the family affected andlor displaced as a result of a sub project land needs will have to purchase these items in the market. The replacement costs therefore, will be calculated based on the average amount that an average town dweller spends on buying these items for one year per adult from the local market. Beehives are placed in various locations in the bush by some individuals that specialize in honey gathering. If such hives would be disturbed by the sub project activities, or access to the hives is denied, beekeepers can move them, and the bees will adapt to the new locations. Beekeepers would be compensated by the value of one season's production costs of honey for each hive that is moved and any reasonable costs associated with moving the hive.

29 he Government of Mali Compensation for trees Mango Trees Mango trees are the primary fruit tree in the project targeted area and are estimated to account for a significant amount of all fruit bearing trees. They are primarily important as a source of : r r Subsistence food for families Petty market income in some areas, and Shade. Given their significance to the local subsistence economy, which this project intends to positively impact, mango trees will be compensated on a combined replacemenvmarket value. Mango trees used for commercial purposes will be compensated at market value based on historical production records. If households chose to resettle, they will be compensated for the labor invested in the trees they leave behind, because they will continue to own the trees left behind under customary rights. It is not uncommon for individuals to own trees in other villages in which they formally lived and, in some cases, to continue to harvest fruit from those trees for subsistence purposes andlor sale to traders. If a household chooses to transfer ownership of the trees, transfer costs will be paid in addition to labor costs. The compensation rate will be based on information obtained from the socio-economic study. From this study, a compensation schedule for mango trees can be developed incorporating the following goals: Replace subsistence mango production yields as quickly as possible. Provide subsistence farmers with trees to extend the number of months of the year during which mangoes are produced and can be harvested as a supplemental source of food for their families during their 'hungry season". Provide farmers with the opportunity to derive additional production income from trees bearing more valuable fruits at off-season periods. Provide cash payments to farmers to replace pre-subproject income derived from the sale of excess mango production until replacement trees produce the equivalent (or more) in projected cash income. The compensation schedule is based on providing a combination of new grafted and local trees to farmers, as well as cash payments to offset lost yearly income. The schedule could assume the following ( the figures in FCFA (x no.) to be determined in the sooio-economic study): Estimated Avg. Fruit Yield (kg) of Mature tree Estimated Yield used Market Price, Height of harvest season (MarchIApril) End of season (late May) Local Mangoes 800 to 1,300 kglyear Ten sacks(1,oookg)ttreelyear FCFAikg I Price used as basis of this estimate 1 80% height of season;20% end of season I

30 -- - Years to Production Years to Maximum Production Costs of Sapling Six to seven Twenty FCFA, locally available. TypelAge of Tree - Sapling Trees planted after sub project cut-off date in area will not be eligible for compensation 1 First mrnor production fruifs okurs about age 1-5 Fruit Producing Proposed Schedule for Mango Trees Cut Down 1 Est In-kind replacement for, Yeam Local Mangms 0-1 Deliver to Farmer. 18 Cholce of two mango trees (local andlor improved grafted) Supplies: fencing to protect Tree, a bucket for watering, - and a spade. Deliver to farmer: Cholce of hvo mango trees (local andlor improved grafted) Supplies: fencing to protect Tree, a bucket for watering. and a spade Deliver to farmer: Cholce of two mango trees ( h l andlor improved grafted) Supplies: fencing to protect Tree, a bucket for watering, and a spade CredlWFlnanclal Support. FCFA Equivalent of Xno. FCFA In credls or other financial support for labor invested in planting, fencing, and watering, made in one payment. Eauivalent of Xno.FCFA in credits or other financial support for labor invested in plantmg, fencing, and watering, made in one payment. Equivalent of Xno. FCFA in credits or other financial support, representing elght years, (8 years x 10 sacks x Xno. FCFAIsadr) lost incomelsubsistence untrl replacement trees begin production. Thrs rate to be agreed by farmers. Total: Equivalent of Xno. FCFA in cash or equivalent financial support to be paid I I ( in one installment. Mature Trees - Low or [ Same as for mature trees above I Same as above [ Non- Fruit Producing No compensation will be paid for minor pruning of trees. Compensation for removal of limbs will be prorated on the basis of the number of square metres of surface area removed. The total surface area of the tree will be calculated using the following formula: ( W diameter of canopy )' x Other domestic fruit and shade trees. These trees have recognized local market values depending upon the species and age. Individual compensation for wild trees "ownedn by individuals which are located in land

31 as defined in this policy will be paid. Note that wild, productive trees belong to the community when they occur in the true bush as opposed to a fallow land. These trees will be compensated for under the umbrella of the village or community compensation. Sub-category foodstuffs ti others CMDT Cotton Domestic Fruit Trees - Shade Trees Avocado Banana Lemon Guava Llme Orange Grapefru~t Papaya lndivldual Owned Wild Productive Trees Palm Kermel Ccconut Tamarind INDIVIDUAL COMPENSATION Unlt 1 sq. meters 1 aq. meters Non-productive pmducttve Non-productive productive Non-productive productive Non-productive Productive Non-productive Producthre Non-productive Productive Non-productive Productive Non-productive productive Young adult Non- productive productive Non-productive produd~ve Non-productive productive Compensation Value (X no. of FCFA) Mango Tntes 2 saplings 8 equipment 2 saplings 18 equipment year 1.6 years 2 saplings I& equlprnent 6+ years Fishlng Equipment - Wein small large Demonstrable loss according to case - Catch Kitchen Qarden Beehive I H. ORGANIZATIONAL PROCEDURES FOR THE DELIVERY OF ENTITLEMENTS, THE RESPONSIBILITIES OF THE GOVERNMENT, AND THE PRIVATE DEVELOPER. Compensation (and resettlement) will be funded like any other activity eligible under the projects' administrative and financial management rules and manuals. Funding would be processed and effected through the Project Coordination Unit (PCU) /AMDER and will comply with the financial arrangements agreed upon at project appraisal.

32 The compensation process which will involve several steps would be in accordance with the individual project resettlement and compensation plans, significantly; Public Participation with the local communities would initiate the compensation process as part of an ongoing process that would have started at the land selectionlscreening stage and at the time the socio-economic assessment is being carried. This would ensure that no affected individuallhousehold is simply "notified" one day that they are affected in this way. Instead, this process seeks their involvement and wishes to inform communities in a participatory approach with the project, from the beginning as outlined in item k. of this RPF. Notification of land resource holders - the respective VMC's or PSB's having been involved in identifying the forest it wants to manage or land it requires will notify the village chief, communities and village inhabitants who will help to identify and locate the property/resource users. The users will be informed through both a formal notification in writing and, for as many as people are illiterate, by verbal notification delivered in the presence of the village chieflcommunity leadersllocal NGO's or their representative. In addition, the village chiefs, religious leaders, other elders and individuals who control pastoral routes, fishing areas, wild trees, or beehives will accompany the survey teams to identify sensitive areas. DocumentatZon of Holdings and Assets - community, VMC, PSB, and PCU officials to arrange meetings with affected individuals andlor households to discuss the compensation process. For each individual or household affected, the project officials completes a compensation dossier containing necessary personal information on, the affected party and those that slhe claims as household mernbers, total land holdings, inventory of assets affected, and information for monitoring their future situation. This information is confirmed and witnessed by village officials, Dossiers will be kept current and will include documentation of lands surrendered. This is necessary because it is one way in which an individual can be monitored over time. All claims and assets will be documented in writing. Agreement on Compensation and Preparation of Contracts - All types of compensation are clearly explained to the individual or household. For subprojects on the Household energy side, the VMC draws up a contract, listing all property,land being surrendered, Forest being managed, and the types of compensation (cash and/or in-kind) selected. For subprojects on the Rural Energy side, the successful and unconditionally approved PSB draws up the contract. A person selecting in-kind compensation has an order form which is signed and witnessed. The compensation contract is read aloud in the presence of the affected party and the PCUIAMDER, representatives of women community associations and other community associations, the village chief,village officials and other village leaders prior to signing. Compensation Payments - All handing over of property such as land and buildings, surrender of access rights to economic resources and compensation

33 he Government of Mali payments will be made in the presence of the affected party and the village officials. Community Compensation Payments Community compensation will be in-kind only for a community as a whole in the form of reconstruction of the facility to at least the same standard or equivalent better standard to that being built by local NGO's on the area to serve the same function. Examples of community compensation include; School Building (public or religious) Public Toilets Well or Pump Market Place Road Storage warehouse Community compensation may in itself require land take and affected, thus a change of impacts which will be compensated for. people may be I. A DESCRIPTION OF THE IMPLEMENTATION PROCESS, LINKING RESETTLEMENT IMPLEMENTATION TO CIVIL WORKS. Before any project activity is implemented, people who are being affected by such activity, will need to be compensated in accordance with the resettlement policy framework. For projects involving land acquisition or loss, denial or restriction to access, it is further required that these measures include provision of compensation, income restoration and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, the taking of land and related assets or the loss, denial or restriction to forest resources may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to affected and/or displaced persons. For project activity requiring relocation or loss of shelter, the policy further requires that measures to assist the affected and/or displaced persons are implemented in accordance with the individual resettlement and compensation plan of action. The measures to ensure compliance with this policy directive would be included in the resettlement and compensation plans that would be prepared for each sub project involving resettlement or compensation. For impacts on the Household energy side, when the VMC's present their resettlement and compensation plans to the HEAG for approval, part of the screening process that the HEAG would use to approve recommended sites would be to confirm that the resettlement and compensation plans contain acceptable measures that link resettlement and compensation activity to civil works in compliance with this policy. Similarly, on Rural energy side the resettlement and compensation plans prepared by the PSB's, will also be screened by the REAG to also confirm that the resettlement and compensation plans contain acceptable measures that link resettlement and compensation activity to civil works in compliance with this policy. The timing mechanism of these measures would ensure that no individual or affected

34 household would be displaced due to civil works activity before compensation is paid and resettlement sites with adequate facilities are prepared and provided for to the individual or household affected. Once the resettlement and compensation plan is approved by the local and national authorities, the resettlement and compensation plan should be sent to the World Bank for final review and approval. J. A DESCRIPTION OF GRIEVANCE REDRESS MECHANISMS. At the time that the individual resettlement and compensation plans are approved and individual compensation contracts are signed, affected individuals would have been informed of the process for expressing dissatisfaction and to seek redress. The grievance procedure will be simple, administered as far as possible at the local level to facilitate access, flexible and open to various proofs taking into cognizance the fact that most people are illiterate and poor requiring a speedy, just and fair resolution of their grievances. The PCUIAMDER being a government agency may not be the best office to receive, handle and rule on disputes, perhaps because affected people/communities may blame them for their plight. Therefore, taking these concerns into account, all grievances concerning non-fulfillment of contracts, levels of compensation, or seizure of assets without compensation should be addressed to the existing local courts system of administration of justice. The equivalent of High Court of Mali will be the highest appellate "judgen in this system. In the local cultures it takes people time to decide that they are aggrieved and want to complain. Therefore, the grievance procedures will give people up to the end of the next full agricultural season after surrendering their assets to set forth their case. All attempts would be made to settle grievances. Those seeking redress and wishing to state grievances would so by notifying their village chief and the administrative head of their cercle, The Prefer. The Prefer will consult with local community leaders, village chief, community elders, VMC's or PSB's and other records to determine a claims validity. If valid, the village chief will notify the complainant and slhe will be settled. If the complainants claim is rejected, then the matter will be brought before the local courts for settlement. If the matter cannot be settled by the local courts, the matter will go the High Court for resolution. The decision of the High Court would be final and all such decisions must be reached within a full growing season after the complaint is lodged. If a complaint pattern emerges, the Prefer with village leaders will discuss possible remediation. The local leaders will be required to give advice concerning the need for revisions to procedures. Once the Prefer, chief and village leaders agree on necessary and appropriate changes, then a written description of the changed process will be made. The Prefer, chief and village leaders will be responsible for communicating any changes to the population. K. A DESCRIPTION OF THE ARRANGEMENTS FOR FUNDING RESElTLEMENT AND COMPENSATION, INCLUDING THE PREPARATION AND REVIEW OF COSTS ESTIMATES, THE FLOW OF FUNDS, AND CON'TINGENCY ARRANGEMENTS. The estimate of the overall cost of resettlement and compensation would be determined during the socio-economic study. The VMC's or the PSB's would have to finance the

35 resettlement compensation depending on who is impacting livelihoods on the rural or household energy side. At this stage, it is not possible to estimate the likely number of people who may be affected since the location of the subprojects are not yet known. When these locations are known, and after the conclusion of the site specific socioeconomic study, information on specific impacts, individual and household incomes and numbers of affected people and other demographic data would be available, thus facilitating the preparation of a detailed and accurate budget for resettlement and compensation. For impacts due to loss, denial or restriction of access rights to forest resources ( i.e. household energy side), the resettlement and compensation budget will be prepared and financed by the VMC's. The PCUIAMDERIHEAG will approve these budgets. This budget will be subject to the approval of the World Bank. For impacts caused by land acquisition and other activities on the rural energy side the resettlement and compensation budget is to be prepared and financed by the approved PSB's. The PCUIAMDERIREAG will approve these budgets and the mechanisms and arrangements for payments would be presented in detail in the Resettlement and Compensation plan. All Resettlement and Compensation Plans which will be prepared under both the forest management and rural electrification services components, will first be submitted to the World Bank for review and approval. At this stage however, all that can be reasonably and meaningfully prepared is an indicative budget, highlighting key features that the budget must contain, inter alia, as follows; # Item Compensation for loss of Land Compensation for loss of Crops Compensation for loss of access to forest resources Compensation for loss of access to pastoralists. Compensation for Buildings and Structures Compensation for Trees Costs (in x no. of FCFA) Xlhectare Xihectare of farm lost Nla N/a X Wyearltree Assumptions For land acquisition purposes, based on cost realized in projects involving similar issues in Mali. Includes costs of labor invested and average of highest price of staple food crops as per methods described in Section G of this RPF Those affected would be provided with opportunities by the VMC's to participate in the rural markets or compensated at full market value for woodfuel andlor charcoal loss. Those affected will be compensated with by VMC's with shared access rights or alternative routes (decision arrived at through consultation and participation of all stakeholders) This compensation would be in-kind. These new buildings would be built and then given to those affected. Cost based on basic housing needs for a family of ten, including house with four bedrooms, ventilated pit latrines, outside kitchen and storage. Based on methods described on Section G of this RPF for compensation for trees.

36 7 Cost of Relocation AssistancelExpenses I I 8 1 Cost of Restoration of Individual Income CI.. Y I X assumed to be higher than the B 10 Cost of Restoration of Household Income Cost of Training of Foresters, Farmers, Pastoralists etc.. -a). A Say X GDPlcapita. For household of ten. This is a mitigation measure which X seeks to lnvolve those affected in the project activities. This figure represents, a costs of around FCFA Nperson ' RHH ooah arm to b. oonllnnmd durlng Um awlo.aconomlc dudy and nvhd et tho tlmm tha paymanta mm mad. L. A DESCRIPTION OF MECHANISMS FOR CONSULTATIONS WITH, AND PARTICIPATION OF, AFFECTED AND/OR DISPLACED PERSONS IN PLANNING, IMPLEMENTATION, AND MONITORING. Public consultation and participation are essential because they afford potential affected andlor displaced persons the opportunity to contribute to both the design and implementation of the project activities. The socio-economic situation prevailing in Mali as discussed earlier, makes public consultation with the communities, indispensable. Furthermore, it is the local communities who are to claim ownership of this project for it to be successful and their wealth of knowledge of local conditions are invaluable assets to the project. In recognition of this, particular attention would be paid to public consultation with potentially affected individualslhouseholds when resettlement and compensation concerns are involved. Public consultation will take place at the inception of the subprojects at the level of VMC's and PSB's during the screening stages of their proposals and assisted by local NGO's, leaders, elders and service providers. The participation strategy would evolve around the provision of a full opportunity for involvement. This process would not be an isolated one because of the very nature of the subprojects, which through its implementation and design ensures continuous public participation and involvement at the local level. Therefore, as a matter of strategy, public consultation would be an ongoing activity taking place through out the entire project cycle. For example, public consultation would also occur during the preparation of the; (i) the socio-economic study and census, (ii) the resettlement and compensation plan and (ii) the environmental impact assessment and (iv) during the drafting and reading of the compensation contract. Public participation and consultation would take place through meetings, radio programs, request for written proposalslcomments, filling in of questionnairesiforms, public readings and explanations of project ideas and requirements, making public documents available at the, district, town and village levels at suitable locations like the official residencesloffices of local chiefslelders. These measures would take into account the low literacy levels prevalent in these communities by allowing enough time for responses and feedback. Notwithstanding, the best guarantor of public interest is the chiefs and other local community leaders (including women leaders) a who are responsible members of their local communities and can inadvertently be part of the potentially affected and/or displaced individualslhouseholds either in part or in whole.

37 Monitoring of this process would be through the village chief as part of the individual resettlement and compensation plans and overall the monitoring and evaluation mechanism of the entire project. This requirement is line with the Bank policy on disclosure. M. ARRANGEMENTS FOR MONITORING BY THE IMPLEMENTATION AGENCY AND, IF REQUIRED, BY INDEPENDENT MONITORS. The arrangements for monitoring would fit the overall monitoring plan of the entire HEURA project which would be through the Ministry Mines, Energy and Water. The objective will be to make a final evaluation in order to determine if the people who were affected by the project have been affected in such a way that they are now living a higher standard than before, living at the same standard as before, or they are they are actually poorer than before. A number of indicators would be used in order to determine the status of affected people (land being used compare to before, standard of house compared to before, how many kids in school compared to before, health standards, etc). Therefore, the resettlement and compensation plans will set two major socio-economic goals by which to evaluate its success: Affected individuals, households, and communities are able to maintain their preproject standard of living, and even improve on it; and The local communities remain supportive of the project. In order to access whether these goals are met, the resettlement and compensation plans will indicate parameters to be monitored, institute monitoring milestones and provide resources necessary to carry out the monitoring activities. The following parameters and verifiable indicators will be used to measure the resettlement and compensation plans performance; Questionnaire data will be entered into a database for comparative analysis at the Regional, Cercle,Commune and the PCUIAMDER levels, Each individual will have a compensation dossier recording his or her initial situation, all subsequent project use of assets/improvements, and compensation agreed upon and received. The project will maintain a complete database on every individual impacted by the project land use requirements including relocationlresettlement and compensation, land impacts or damages Percentage of individuals selecting cash or a combination of cash and in-kind compensation, Proposed use of payments The number of contention cases out of the total cases 'The number of grievances and time and quality of resolution Ability of individuals and families to re-establish wood harvesting charcoal production activities, and farming or other alternative incomes

38 Woodfuel/Charcoal productivity in new forests under management and Agricultural productivity of new lands Number of impacted locals employed by the private sector energy companies Seasonal or inter annual fluctuation on key foodstuffs and woodfueucharwal activity General relations between the project and the local communities The following indicators will be used to monitor and evaluate the implementation of resettlement and compensation plans; VERIFIABLE INDICATORS Monitoring Evaluation Outstanding compensation or resettlement contracts I Outstanding - individual comoensation or resettlement, not completed before next agricultural season. contracts. Communities unable to set village-level Outstanding village compensation contracts. compensation af!er two years. Grievances recognized as legitimate out of all All legitimate grievances rectified complaints lodged. Pre- project production versus present production ( crop for crop, land for land, forest for forest). Equal or improved production per household. Financial records will be maintained by the VMC's, PSB's and PCU/AMDER to permit calculation of the final cost of resettlement and compensation per individual or household. Each individual receiving compensation will have a dossier containing; Individual biological information, Number of people slhe claims as household dependents Amount of land available to the individual or household when the dossier is opened. Additional information will be acquired for individuals eligible for resettlementfcompensation: Level of income and of production Inventory of material assets and improvements in land, and Debts. Each time land is used by a PSI3 or a new forest is placed under a VMC by the project, the dossier will be updated to determine if the individual or household is being affected to the point of economic non-viability and eligibility for compensation/resettlement or its alternatives. These dossiers will provide the foundation for monitoring and evaluation, as well as documentation of compensation agreed to, received, and signed for. It is normal that some compensation procedures and rates may require revision at some time during the project cycle. The PCUIAMDER and Prefer of the Cercle will implement