COLOMBIA MINISTRY OF ENVIRONMENT, HOUSING AND TERRITORIAL DEVELOPMENT WATER AND SANITATION SECTOR SUPPORT PROJECT RESSETLEMENT POLICY FRAMEWORK

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized COLOMBIA MINISTRY OF ENVIRONMENT, HOUSING AND TERRITORIAL DEVELOPMENT WATER AND SANITATION SECTOR SUPPORT PROJECT RESSETLEMENT POLICY FRAMEWORK August, 2004

2 PROJECT DESCRIPTION The overarching objective of the Government s Program is to improve access to water supply and sanitation services throughout Colombia. The Program is based on the principle of linking investment grants to reforms; by providing capital investment subsidies in connection with institutional reforms at the local level, the Program also supports the Government s sector policy agenda, the core of which is an effort to strengthen the institutional and financial sustainability of service providers. Bank project objectives. The Bank Project, structured as an APL, will operate through the Ministry of Environment s Ventanilla Única. The APL allows the Government to take a phased approach to planning and identifying funding sources while building the necessary institutional, monitoring, and oversight capacity. The overarching objective of the Program would be to improve access to water supply and sanitation services throughout Colombia. The Program is based on the principle of linking investment grants to reforms; by providing capital investment subsidies in connection with sector reforms at the local level, the Program also supports the Government s policy agenda, the core of which is an effort to strengthen the institutional and financial sustainability of service providers. The Project aims to improve the provision of water supply and sanitation services in Colombia in a financially efficient and sustainable manner through the provision of capital investment subsidies for poverty-focused coverage expansion and service quality improvement. The Project will (a) scale-up the involvement of the private sector in medium-sized cities through the introduction of performancebased management arrangements with specialized operators; (b) support poverty-focused investment through targeted capital subsidies in small, medium, and large urban areas; and (c) deliver appropriate water supply and sanitation investments in Colombia s underserved rural areas. Project Components. Phase I of the APL Program is estimated at US[$120.0] million with the Bank financing US[$70.0] million. The key elements of the proposed operation are: (i) expansion of water and sewerage networks and adequate treatment of source water along with enhanced operation and management of municipal water and sewerage utilities (both publicly and privately operated); (ii) investments for municipal wastewater treatment; and (iii) technical assistance for institutional reform at the local level. Works proposed are typical for the sector: construction and rehabilitation of diversion and retention infrastructure; water treatment facilities; primary and secondary water supply networks; sewer network rehabilitation and expansion (primarily main collectors and pumping stations); rehabilitation and expansion of existing wastewater treatment and disposal facilities; construction technical assistance (TA) to support sector reform; program management and the strengthening of participating local water companies; and equipment and staff training for upgrading the monitoring and control networks. During the project preparation, 109 subprojects were analyzed. The trend indicates that 64% of the subprojects will take place in urban areas, 6% of which are shared with rural areas; 26% focus netly on water and 21% on sanitation. In both cases, the majority of the works are linear and, once again, the majority correspond to Type I (36% when the projects are added), and could be classified as improvements of existing infrastructure. Out of the total type I subprojects, 7% are isolated, while the rest reflect a mix of isolated and linear I and II, equivalent to 45% of the total subprojects for water and sanitation that were submitted. Five per cent of all subprojects include the construction of urban wastewater treatment plants (PTAR), of which 4 cases include sanitation works associated to the PTAR. Regarding subprojects in rural areas, 22% of all projects focus on water, 5% on sanitation and 1% include both components, an investment apparently required to improve the infrastructure. According to the Environmental Assessment of the Rural Sanitation Inventory made by the Consultant, this line 2

3 of investment is consistent with the poor situation of rural areas in terms of service. However, it is essential to insist on the importance of potabilizing water, since the existence of water systems does not guarantee the availability of the quality of water required for human consumption in urban areas, let alone rural ones. This component is not apparent in the information included to justify the investments, therefore, during the monitoring of the projects, it will be crucial to verify that the investments are complemented by local actions which guarantee the supply of drinking water for the urban and rural population. Alternatively, the MAVDT could make it mandatory for the interested parties to submit the strategies to secure this aim. Of the total subprojects, 6% refer to the construction of landfills and plants for waste reuse (recycling). One of the landfills is of the regional type and will serve 12 municipalities. Another 3% focuses on improving the existing recycling plants. These subprojects should be supported enthusiastically in order to overcome the waste disposal crisis that exists in a good share of the national territory, generating health problems, especially for the rural population. Project outcomes. The operation will have very positive impacts on the environmental and social conditions of the poorest populations, normally located in medium and smaller size municipalities, and especially in their rural areas. The program will benefit 2.5 million people by: i) reducing water quality-related morbidity and mortality, decontaminating water resources thanks to appropriate management and, in some cases, the treatment of wastewater; ii) increasing efficient water use, particularly in the case of those works connected with network renewal, with the consequent reduction of resources for treatment and the improved administrative and operational efficiency of service providers; iii) generating social employment through the systems to reuse solid waste. The population to benefit, according to the data shown in the documents, represents over 2.5 million people, approximately 6% of the Colombian population. Of these, over 1.9 million will have improved living conditions with water and sanitation investments, both in urban and rural areas, and the latter, direct benefits will be received by over 400 thousand people. The immediate effects will be felt in terms of personal health, specially for children, who are frequently more vulnerable to gastrointestinal diseases, cholera, typhus, hepatitis B, among other illnesses. In some cases the construction of the works will require purchasing land and the involuntary displacement of the resident population and the economic and social activities located therein. International and national experience has shown that if the impacts caused by involuntary displacement are not mitigated, serious economic and social problems may ensure for the people involved. With the purpose of mitigating the impacts of the involuntary resettlement during the execution of the Program, a Resettlement Policy Framework has been developed, applicable in said context, aimed at supporting the restoration of the socio-economic conditions of the population that will have to relocate. This Framework is consistent with the World Bank s Involuntary Resettlement policy 4.12, the agency that will participate in funding this project. Taking into account that the process of land purchase is an essential part of the population displacement and resettlement procedures such process has been included within this Policy Framework. ABBREVIATED RESETTLEMENT FRAMEWORK This document includes: (i) the principles and objectives of the resettlement policy to be applied in subproject execution, (ii) the legal framework that governs the purchase of land and the resettlement of population, (iii) the procedure for the preparation of abbreviated resettlement plans, (iv) the elegibility criteria of the population of policy beneficiaries, (v) the tracking, monitoring and evaluation arrangements, and (vi) the institutional arrangements and sources of funding. 3

4 Definitions. Some of the concepts used in this Policy Framework are defined as follows: INVOLUNTARY DISPLACEMENT When a person, family, group or economic activity are forced to relocate elsewhere, as the result of a decision that is legally enforced by an external agent, without the possibility of remaining in their place of residence. In the case of this Project, the people who reside in the lands that are required for the construction and improvement of the infrastructure works, and the economic activities developed thereon, will be displaced RESETTLEMENT It is the process whereby displaced people are supported to restore the living standard they had prior to their displacement. DISPLACED POPULATION Are the groups, communities or populations residing or working in the areas required for the works and which are obliged to relocate. SOCIAL UNIT A Social Unit is understood to be the people who have rights over a plot of land, regardless of whether or not they reside in it, as well as the industries, trade and service activities that are carried out on a plot of land. Social Units may be classified according to holding status (owner, lessee, user, holder, occupant), use (housing, industry, commerce, service) and residence (whether residing in the plot or not). One plot may comprise more than one social unit. PLOT Individual piece of land with or without improvements, that may be identified physically and according to the cadaster. LEVEL OF INVOLVEMENT Total: when a plot it totally affected and all social units that reside or carry out an economic activity in the same are forced to relocate. Partial: when a plot is partially affected and the remaining area may continue to be used for housing or an economic activity. Partial affectation may imply the displacement of one or more social units that are resident or have an economic activity on the plot. Objectives and principles ruling the preparation and execution of the resettlement Objectives Mitigating and compensating the impacts caused by involuntary displacements when they are unavoidable. Restoring the socio-economic conditions of the displaced population. Principles Minimizing population displacements To the extent possible, all the negative impacts of the involuntary displacement should be avoided. To that end, each subproject will conduct a detailed analysis of all viable options for the project, with the purpose of suggesting that one which causes less displacement. 4

5 Restoration of socio-economic conditions Monetary recognition alone is not a solution to the impacts of displacement, nor does it guarantee the restoration of the socio-economic conditions of the affected people. Therefore, resettlement plans will be designed and executed to assist the displaced population in the restoration or improvement of their conditions, Inclusion All the inhabitants of the sites affected by the construction of subprojects, independently from the form of holding demonstrated, will have a right to assistance in restoring their living conditions. Equity The resettlement solutions proposed by the agencies will be responsive to the impacts caused by the displacement. Equality All families or economic activities that are subject to relocation shall receive the same treatment and equal access to the various programs being offered. Communication The owners and residents of the required plots will receive clear, truthful and timely information on their rights, duties and the status of their process. Consultation Social units that have to be relocated will be consulted on the alternative resettlement solutions and plans developed for that purpose. Transparency The whole land purchase and resettlement process will be disseminated and validated in such a way that it becomes known to all participants. The process will be handled in an objective and technical manner with the purpose of ensuring that the benefits only cover the works-affected population and that the established criteria and procedures are applied in an equitable manner for all. Expeditiousness The agencies responsible for the execution of the actions and activities related to the resettlements will assign the required physical, human, administrative and financial resources for their execution in a timely manner as planned. LEGAL FRAMEWORK The Resettlement Policy Framework was developed pursuant to the applicable international rules ratified by the Government of Colombia, national rules and general principles of law, jurisprudence and doctrine that provide guidelines for the purchase of lands and the protection of the fundamental rights of individuals displaced by development projects, as well as the method of appraisal of the affected property. Rules on the Purchase of Land Constitutional Rules Art. 1. "Colombia is a Social State under the Rule of Law, organized as a unitarian Republic, decentralized, with autonomy of its territorial entities, democratic, participatory and pluralistic, founded on the respect for human dignity, work and solidarity of the people that compose it and the prevalence of the general interest." 5

6 When article I of the Political Constitution says that Colombia is a Social State under the Rule of Law, it is asserting that the State has the obligation of seeking social justice in each of its actions, so that members do not have their rights violated by actions generated by the Administration. It is thus consistent with article 2 of the Chapter, which indicates that the essential purpose of the State is "to serve the community, promote general prosperity and guarantee the effectiveness of the principles, rights and duties enshrined in the Constitution". C Art. 58. "Private property and the other rights pursuant to civil legislation are hereby guaranteed... Property has a social function implying obligations. As such, it inherently possesses an environmental function..." For reasons of public convenience or social interest as defined by lawmakers, there may be expropriations with a prior court ruling and compensation..." The Constitution guarantees private property as a general norm and allows for expropriation as an exception, only for reasons of public convenience and social interest, with the prior recognition of a compensation for the damages caused, which shall be set by consulting the interests of the community and the affected individual and invoking reasons of justice and equity. In such procedures, it is necessary to take into account not only the basic constitutional guarantees referring to the right to life and integrity and the right to defense, but also the need for the State to act, providing effective responses and the development of the rights of provision, among which the right to housing in conditions of dignity is one of the most important (C ). Legal norms Law 388 of 1997 The purchase of lands for reasons of public convenience is governed by a special procedure already regulated in Chapter III of Law 9th of 1989, as amended by Chapter VII of Law 388 of 1997, pursuant to which the right in rem of domain, its constitutive elements and the other rights in rem are susceptible to be purchased. In order to decree expropriation and in additions to other reasons determined in other legislation in force, the purchase of real property can be declared to be of public convenience or social interest to be used, among other purposes, for the following: execution of production projects, expansion, supply and distribution of residential public utilities, execution of infrastructure programs and projects, creation of reserves for the protection of the environment and water resources, execution of urban development and construction projects, of a priority nature in the terms foreseen in the zoning plans, in accordance with legal provisions. The law establishes a basic procedure to perfect the purchase of the real property when the sale is carried out on a voluntary basis by its owner, with special mention to be made of the existence of a purchase offer. The communication of the action by means of which the purchase offer is made is done in the manner established in articles 44 and 45 of the Administrative Code and does not generate the right to lodge an administrative complaint before the government (Law 388, art. 61). Such act must be recorded in the certificate of delivery to exclude the property from trade. The law provides for a minimum of 30 days for the administration to reach a "formal agreement for the voluntary sale, contained in a preliminary sale agreement", otherwise the administration becomes free to initiate expropriation procedures. Regarding the preliminary sale agreement and its perfection, it is carried out in accordance with the provisions of the Civil Code and the Statute of Notaries and Registration. 6

7 Finally, it should be noted that in terms of the process to purchase an estate the legislation in force has a gap regarding the possession of real estate, since Law 388 of 1997 does not provide for any arrangements to acquire possession and purchase improvements, since these matters are only contemplated in the case of high risks. To address the owners and holders of improvements, special arrangements have been established within resettlement plans. In some cases, i.e. the Capital District with Decree 619 of 2000 and Decree 296 of 2003, the value of the improvements made by the holder must be recognized as a minimum, and if its value is under fifty (50) minimum salaries, an additional sum must be paid to allow for the purchase of housing in conditions of dignity. Legal rules relating to the Resettlement of population While Colombia does not have a regulated procedure as such to formulate and execute resettlement plans as it does for the purchase of land- there are international and constitutional rules that provide a foundation. Consequently, each of the proposed Program subprojects in the country to be financed by the World Bank, will be based on those norms as well as on this Resettlement Policy Framework. International rules The criterion whereby international rules were incorporated into in this Framework derives from the prevalence of international law and human rights over domestic rules and the direct application they should have in our environment (Art. 93 of C.P.) Pursuant to the Convention of San Jose de Costa Rica (linked through Law 16 of 1972): "Article 21. All individuals have a right to use and enjoy their property. The law may subordinate such use and enjoyment to the social interest. No individual shall be deprived of his or her assets, except with the payment of a fair compensation, for reasons of public convenience or social interest and in the cases and according to the manners established by law." United Nations Declaration of Human Rights Every human being shall have the right to be protected against being arbitrarily displaced from his or her home or place of habitual residence (United Nations, Principle 6.) Arbitrary resettlements are internationally prohibited in cases of large-scale development projects, which are not justified by compelling and overriding public interests (United Nations, Principle 6.) Prior to any decision requiring the displacement of persons, the authorities concerned shall ensure that all feasible alternatives are explored in order to avoid displacement altogether. Where no alternatives exist, all measures shall be taken to minimize displacement and its adverse effects (United Nations, Principle 7.) The authorities undertaking such displacement shall ensure, to the greatest practicable extent, that proper accommodation is provided to the displaced persons, that such displacements are effected in satisfactory conditions of safety, nutrition, health and hygiene, and that members of the same family are not separated (United Nations, Principle 7.) The free and informed consent of those to be displaced shall be sought (United Nations, Principle 7.) The authorities concerned shall endeavor to involve those affected, particularly women, in the planning and management of their relocation (United Nations, Principle 7.) Displacement shall not be carried out in a manner that violates the rights to life, dignity, liberty and security of those affected (United Nations, Principle 8.) 7

8 Adequate measures shall be taken to guarantee to those to be displaced full information on the reasons and procedures for their displacement and, where applicable, on compensation and relocation (United Nations, Principle 7.) Constitutional rules Art. 1. "Colombia is a Social State under the Rule of Law, organized as a unitarian Republic, decentralized, with autonomy of its territorial entities, democratic, participatory and pluralistic, founded on the respect for human dignity, work and solidarity of the people that compose it and the prevalence of the general interest." The foundations of this new definition of the State have been developed by Constitutional Jurisprudence and indicate, in the first place, the respect for and the guarantee of constitutional rights, especially, the development and effectiveness of economic, social, cultural and collective rights; secondly, democratic participation in government and special attention to be devoted by the State to solving the needs of the members, seeking their wellbeing and quality of life. Art. 2 "... the authorities of the Republic are set up to protect all persons residing in Colombia, in their life, honor, beliefs and other rights and liberties and to ensure the enforcement of the social duties of the State and individuals." Art. 5 "The State recognizes, with no discrimination whatsoever, the primacy of the inalienable human rights and protects the family as society s basic institution." Art. 90. "The State will be liable for any illegal damages imputable to it, caused by the actions or omissions of public authorities..." Art. 287 "The territorial entities are autonomous to manage their interests, within the boundaries of the Constitution and the Law..." Arts. 42, 43, 44, 46, 51, 58, 79, 80, recognize social, economic and cultural rights. The right to housing should be recognized under conditions of dignity, i.e. in material and spiritual conditions of existence that make it possible to live with quality and have a space for the free development of the personality (rule C-575/92. Art. 51 of the National Constitution). Legal Norms Law 388 of 1997 Art. 1, par. 3. "Guarantee that the use of the soil by its owners responds to the social function of property and provides for the effectiveness of the constitutional rights to housing and residential utilities, and safeguard the creation and defense of public spaces, as well as the protection of the environment and the prevention of disasters." Art. 2 "Territorial zoning is founded on the following principles: The social and environmental function of property. The prevalence of general interest over particular ones. The equitable distribution of burdens and benefits". Art. 4 "Democratic participation. In the exercise of the various activities that are comprised in urban actions, municipal, district and metropolitan authorities shall promote the harmonization of social, economic and urban interests, with the participation of the inhabitants and their organizations..." 8

9 Art. 3 Favor the improvement of the quality of life of inhabitants, the equitable distribution of opportunities and the benefits of development. Art. 119 indicates that in case the holders or owners of housing vested with a social interest do not accept the terms of payment or the preference right pursuant to this article, the municipal or district authority participating in the corresponding renovation projects will guarantee them access to a housing solution of the same type, to which end they will grant municipal housing subsidies. Law 99 of 1993, Art. 57. "On Environmental Impact Assessments. An Environmental Impact Assessment is understood to be the ensemble of information to be submitted to the competent environmental authority by the applicant for an environmental license..." Environmental Impact Assessments will contain information on the siting of the project, and the abiotic, biotic and socio-economic elements of the environment that may suffer deterioration as a consequence of the respective work or activity..." Law 56 of 1981 The norm regulating public works for electricity generation, water supply and sanitation, irrigation, and regulating expropriations and rights of way for property affected by the construction of such works. The Law establishes the procedures and regulations for acquisition of rights of way and easements, and though it is principally focused on energy projects, it is the basis for all service sector investments. Method of appraisal of the affected goods Pursuant to Laws 9 of 1989 and 338 of 1997 mentioned in this Chapter and regulatory Decree 1420 of 1998, which expressly refer to the subject of appraisal of the estates that may be required for reasons of public interest, as in the case of road infrastructure, and IGAC Resolution 762 of 1998, the method to assess the value of the estates required for the execution of subprojects will be governed by Art. 1 of said Resolution, denominated comparison or market [assessment]. This consists in "the appraisal technique designed to establish the commercial value of the asset based on a study of recent transactions or offers for assets that are similar and comparable to that to be appraised. Such offers or transactions shall be classified, analyzed and interpreted to arrive at an estimate of the commercial value." On the other hand, Decree 1420, article 21, paragraph 6 reads "... for estates that are used for productive activities which will be subject to an affectation causing a temporary or definitive restriction to the generation of income derived from their development, independently from the assessment of the estate, a compensation for loss of income will be recognized, for up to a maximum of six (6) months." Consequently, each subproject can use that article as grounds to make economic compensations different from the value of the estate in connection with any productive or revenue generating activities that are conducted in the plots to be purchased. On the matter of the value to be received by owners for their estate, jurisprudence has indicated the following: "Therefore, the payment of indemnity is a consequence of the powers of expropriation of the State. It is based on the duty to provide a reparation that stems from the exercise of such powers: having produced a damage generated by a legitimate activity of the administrative action. The activity is legitimate because expropriation only operates based on reasons of public convenience or social interest as defined by lawmakers, with the consequent prevalence of the general interest to achieve the essential aims of the State, referred to in article 2 above: to promote general prosperity and guarantee the effectiveness of the principles, rights and duties enshrined in the Constitution. The payment of indemnity is not compensatory, that is, it is 9

10 not an assumption or a condition of the indemnity generating a compensation borne by the State and in favor of the party being expropriated, as a result of the patrimonial enrichment of the first. If that was the case, the payment of indemnity would be set based on the objective value of the assets and not, as ordered in the Constitution, "consulting the interests of the community and the affected individual." Should the thesis of the compensatory character of the indemnity be accepted, one should conclude that expropriation is a simple conversion of values: the expropriated assets are replaced with their equivalent in money and would therefore not include damages that are a direct and immediate consequence of the expropriation. In such as case, the payment of indemnity would not be fair, as ordered by article 21, second paragraph of the San Jose [de Costa Rica] Pact. It is evident that the payment of indemnity contemplated in article 48 of the Constitution is a reparation and it should be complete, since it must comprise the consequential damage and loss of income that has been caused to the owner of the assets that have been expropriated. And if there is no way to prove the loss of income, then the indemnity may be paid based on the value of the asset and the interest accrued between the date of delivery of the same and the payment of the indemnity (C ). PREPARATION OF THE ABBREVIATED RESETTLEMENT PLAN Composition of the work team To prepare an abbreviated resettlement plan, the agency in charge of the subproject will appoint a qualified professional to coordinate its design and execution, within the unit responsible for preparing the project. Information to the community Before giving start to the activities related to designing the works of the subproject, an Information and Communication Program shall be designed, containing the various stages of the Resettlement Plan and adjusted to the scope of the impact. This Program will address two different groups: the population of the area of influence who will continue residing at the site and the owners and residents of the lands that will be required for the work. Objectives Inform the population of the area of influence on the project on its potential characteristics, the technical stages involved in project design and construction, the time schedules foreseen, the various players involved and the agency responsible for the project. Report on the studies and procedures that will be carried out regarding the owners, holders of rights and residents of the lands that will possibly be acquired. Reduce the stress and anxiety of the population potentially affected by the work. Show the project-linked benefits and the manner in which all players will win with the project. Prevent the interference of external agents with economic or political interests that impinge on public interests and the interest of the affected population. Introduce the persons responsible for social management and resettlement to the community. Establish effective and fast communication channels to respond in an ongoing manner to community concerns. To that end, a mutually agreed place and hours of attention to the community should be defined. Such a site should be located within the area affected and be readily accessible, to avoid transportation costs for the population. Articulation of the resettlement process with the project s technical stages In order to guarantee the availability of the lands at the time of starting the construction of the works and to allow for the time needed to execute the Resettlement Plan, all subprojects submitted will maintain a close relationship between the technical work stages and the development and execution of the Resettlement Plan, as indicated below: 10

11 Once the final designs are ready, technical, legal and socio-economic diagnoses shall be made of the affected lands and the population to be displaced. Based on such diagnoses, impacts will be identified, solution alternatives defined and the Resettlement Plan will be formulated. The execution of the Resettlement Plan will be carried out during the process of procurement of the works, so that the lands are available at their start time. If the construction schedule allows for it, the execution of the plan may continue during this stage, always and provided that it does not affect the construction schedule or result in a hasty or provisional move of the population. The stages to be covered to design and execute the Abbreviated Resettlement Plan are described below. A social expert of DAPSMA will indicate the level of detail required by each subproject. Census and socio-economic survey of the affected families, properties and businesses Identify the socio-economic characteristics of the area of intervention of the project and potential conflict situations. Identify the need to acquire lands for the construction of the works and estimate their number. Identify the need to displace population, identify the socio-economic characteristics of such population and evaluate the social and economic feasibility of resettlement. Identify potential social conflicts. Make a preliminary determination of the human, physical and financial resources required to execute the resettlement plan. Include the estimated resettlement costs in the subproject budget. Topographical survey. Determine the physical characteristics of the plots and improvements to be acquired for project execution. Titling review As the topographical survey proceeds, the documents required to review titles will be gathered (i.e. deeds, purchase commitments, payment receipts of property taxes, utilities and other documents required by the lawyers.) A certificate of reception of such documents will be drawn, indicating the type of document delivered and the date. Estate Appraisal. After analyzing the consistency between the information from the topographic surveys and the titling review, the appraisals have to be contracted. Socio-economic Diagnosis. It implies developing a detailed census of the social units present in the area affected by the works, aimed at gathering updated and detailed information on the demographic, economic and social characteristics of the owners and residents of the lands required by the project. Impact identification. This is the stage of identifying and analyzing the impacts that the owners and residents of the lands required by the project will face, to be able to define the corresponding mitigation and compensation measures. The Borrower will collect the information required to complete the following charts: 11

12 Chart 1: Number of estates that are totally or partially affected Degree of affectation Total 1 Partial 2 No. of estates 1 Total affectation: when the total estate is affected and when it is no longer possible to continue developing the activities as a result of the affectation. 2 Partial affectation: the land affected by the Project is a small fraction of the affected estate and the residual land is economically viable. 12

13 Chart 2: Property (affected goods and assets) Estate 1 Household No. 2 Store No. 3 Area of the plot Description of the house and constructions Holding status (owner, holder, tenant, etc) Assessment value Comments 1 Assign a number to each affected plot. Likewise, each lot should have mention of the respective Household No. and Business No.. 2 Households are defined as the person or group of persons that occupy the whole or part of a housing unit and which have come together to satisfy their food requirements and share a budget. In this column, assign a number to each affected household. That number will be the household identification number in the subsequent charts. If there is more than one affected household or business per lot, number each household or business taking into account that the lot number should remain the same in the subsequent charts. 3 Business is defined as any economic activity. To complete the following charts, use the previously identified household or business identification number. 13

14 Chart 3: Socio-economic characteristics of the families Household No. Name of the head of household No. of household members No. of children under age 13 No. of adults over age 60 No. of students Sources of income Study or work places and distances Means of tansportation to study or work places Uses of the property (household, economic activity, other) Comments 14

15 Chart 4: Socio-economic characteristics of businesses Business No. Name of business owner Age of business owner Type of activity No. of employees Average monthly income Destination of production Place of sale Years of the business in the affected area Comments 15

16 Chart 5: Displacement-linked impacts (Households) Household No. Loss of land Loss of housing Loss or reduction of income Loss or difficulty of access to education centers Loss of access to health services Loss of access to public services Loss of social networks Degree of affectation, total or partial Comments 16

17 Chart 6: Displacement-linked impacts (Businesses) Business No. Loss of land Loss of business Loss or reduction of income Possibility of relocating the business Degree of affectation, total or partial Comments 17

18 Displacement-linked impacts. Provide the level of detail required to understand the extent of the impact caused by displacement. The holding and use of the estate are the factors determining the impacts, therefore, impacts are analyzed based on these variables and the population is classified according to the impacts they will face. This classification will facilitate identifying the groups of target population for each mitigation or compensation measure. As a guideline, there follows a description of displacement-linked impacts and groups of population that face them. CHART 7 - TYPE OF IMPACTS Variables determining the impact Temporary affectation of right of way. Partial estate affectation. Impact Temporary loss of the use of land. Partial loss of estate. Categories Owners, holders. Owners or holders with partial affectation. Total estate affectation. Total loss of estate. Owners, holders. Residence in the estate. Economic activity in the affected estate, or in the affected area, or estate-derived income. Productive activity. Community participation. Loss of housing. Partial or total loss of income. Partial or total loss of income. Loss of community organizations. Owners, holders, tenants, beneficiaries, resident holders. Equity holders, owners of stores, industries or services. Owners or workers. Population participating in local social organizations. Assistance proposed for resettled families. Description of the type of assistance that will be provided to the displaced persons, the terms of the agreements with them and their desire to accept the agreed assistance and scheduling. Based on the results of the diagnoses, the identification of impacts and the offering of new or used property that may serve to replace those affected, alternatives for resettlement are defined. The entity responsible for resettlement shall decide on the type of solution to be adopted to relocate social units, taking into account the resources, time, needs of the population, local housing plans and offers of the housing market. In general, the following should be covered: Describe the efforts to restore or improve income; 18

19 Provide special attention to the aged, disabled, single mothers or people in need of special assistance; Describe how access to basic services will be restored or improved; Indicate how families and community groups will be maintained together Describe the arrangements to restore socio-economic links; Describe possible impacts on host groups and measures taken to avoid rejection or other negative reactions. There are generally three alternatives for resettlement: Compensation Resettlement to new housing Assistance for relocation. Compensation. Consisting in the purchase of a new or used unit by the owner or holder, with the sum of money received as payment of the assessment value at market prices, the payment of compensations for the economic losses caused by the relocation and real estate, legal and social advise to acquire a replacement unit and restore socio-economic conditions. In order to execute, it is essential to ensure there is a sufficient offering of real estate to replace the lost units. In the case of tenants, this alternative comprises supplying advise to obtain another rental property, guaranteeing the time and resources for relocation. Resettlement to a new house. It consists in the collective relocation to a resettlement solution offering housing, restoration of economic activities, basic services infrastructure and social facilities. It implies the acquisition and adequation of lands, the construction of infrastructure, housing, community facilities, allocation of housing, titling, relocation and socio-economic restoration programs after the move. Collective resettlement plans are proposed when the following situation arises: (i) during the diagnosis, a high vulnerability of the population vis-a-vis the displacement is detected, due to the great cohesion and strong roots of the group at the site, (ii) there are lands available for construction; (iii) the time available for the construction of the public works makes it possible. Chart 8: Agreed solutions Household or business number Resettlement solution Comments Eligibility Criteria. The eligibility criteria to be a beneficiary of the resettlement plan and the various solution alternatives offered will be the following: Being the holder of rights in rem over the lands to be acquired, duly demonstrated. Residing or conducting an economic activity in the lands required for the construction of the works. Being registered in the official census conducted as part of the socio-economic survey. 19

20 The cutoff date of the list of beneficiaries for the resettlement program can be determined with the declaration of public interest or by means of a public announcement of the project execution in the official gazette or municipal register. Both the declaration and the announcement should contain the list of heads of eligible social units with their corresponding identification number. To avoid subsequent modification, an agreement will be made at the information meetings, to have the lists available for review by the beneficiary population at the community centers, and a period of 15 days will be allowed to carry out any adjustments required as a result of census omissions or errors. Resettlement Planning and Design Having defined the modality that will be used for the resettlement of the population, the respective plan will be formulated, depending on the type of alternatives selected, the human, physical, financial resources will be defined and the execution schedule will be developed, in coordination with the schedule for the procurement and construction of the works. When the decision is to implement collective resettlements, the executor will consult the POT, with the purpose of coordinating the resettlement with municipal urban zoning plans, thus guaranteeing the harmonic and sustainable development of the locality or municipality involved. It will also be necessary to define the institutional organization required to execute the plan, develop agreements with other institutions, as may be the case, and consult and validate the content and scope of the Plan with the owners and resident population of the required lands. Information and Consultation Program. This program is intended to offer the owners, holders of rights, residents and businessmen of the lands required for the works, adequate, timely and ongoing information on the content of the Resettlement Plan, the process for the purchase of the plots, the planned time schedules and the rights and duties of each of the parties. To that end, the information and consultation program should be present in the stages of resettlement preparation and execution. The dissemination strategies for each subproject must reflect both the particularities of the project and the characteristics of the population. To develop this program it is necessary to: Conduct community meetings at the start of each stage in the process (preliminary studies, diagnoses, consultation and validation of the plan.) Record the participation of persons at the various events (attendance records) and the opinions and conclusions (minutes of the meetings). Design a system to receive and follow up on grievances and claims that may arise during the process. EXECUTION OF THE RESETTLEMENT PLAN Execution This is the stage when the actions related to planning and design will be implemented. Also, a Committee will be set up with the unit in charge of the construction of the work, the head of the Environmental Management Plan, and the people responsible for execution of the resettlement. The committee will meet periodically to review progress, identify issues and agree on solutions. 20

21 The execution of the Plan can be carried out directly by the agency responsible for the project, be contracted with a private firm or conducted through agreements with other institutions. The setting up of the corresponding team, the procurement or signing of agreements will be done with sufficient time to guarantee that the execution of the plan begins as soon as its development is completed and the construction of the work is confirmed. Insofar as possible, it is recommended that the procurement and resettlement team remain the same during the Plan s diagnosis and execution phase. Tracking. A tracking system will be set up covering all the activities included in the time schedule by means of a data base. The tracking will record the most important events in the process of acquisition of lands and relocation of each social unit, to identify programs for each social unit on a timely basis and take the measures to solve them. The most important landmarks to be tracked are the following (these aspects are adjusted according to the holding of the estate): Information on the project and the studies Notice of affectation Topographical survey Titles study Appraisal Socio-economic survey Purchase offer Negotiation Development of the purchase commitment Execution of the purchase commitment Development, signature and registration of deed Payment for the estate Payment of economic recognitions Selection of the replacement property Development of the purchase commitment of the replacement property Development of the deed of the replacement property Registration of the deed of the replacement property Relocation Delivery of the estate Removal of public utility meters Demolition Monitoring In order to verify the restoration of the socio-economic conditions of the displaced population, the level of restoration of the following variables will be monitored: Housing Public services (water, energy, telephone, transport, garbage collection) Access to Education 21

22 Access to Health Employment Income Premises for economic activity Public services (water, energy, telephone, transport, garbage collection) Sales Net income Audit To guarantee the absolute transparency of the process of land purchase and resettlement, independent auditors will be engaged, to prepare quarterly reports to be sent to MAVDT. Surveillance activities will be developed to prevent the re-occupation of released properties while they are being demolished. Ex-Post Evaluation Once the civil works for each subproject have been executed and therefore, all of the social units and economic activities have been relocated, an ex-post evaluation of the effectiveness and efficiency in executing the plan will be conducted, with special focus on the restoration of the socio-economic conditions of the target population of the plan. INSTITUTIONAL ARRANGEMENTS Environmental monitoring procedures vary according to the potential subproject impacts. Each subproject will present an environmental and social impact monitoring plan, with specific indicators, as part of their information to be considered for financing. DAPSBA, in part through their deconcentrated department-level staff, will assure subproject compliance with defined mitigation measures by requiring the municipalities to regularly submit simple monitoring reports which will be handled by the municipal enterprise in coordination with the interventor, or independent supervisor who will be hired under the operation to monitor and supervise subproject implementation. DAPSBA will summarize the screening and monitoring outcomes for each subproject in a standard format. This format should include sufficient project information to enable monitoring, such as data on project type, location, affected area, beneficiaries, environmental categorization, type of environmental work necessary, indicators, and ongoing monitoring results as reported by the municipalities. All of these data should be maintained by DAPSBA. RESETTLEMENT PLAN FINANCING Each subproject will include in the Program budget the costs of the resettlement plans described, including administrative or operating expenses, professional fees or external procurement, values of the lands to be acquired and of each of the programs adopted by the Resettlement Plan. At the time of submitting the resettlement plans, each subproject will include a detailed budget of the activities comprised, the sources of funding and demonstration of the availability of resources. 22