Integrated Urban Development Project (IUDP)

Transcription

1 SOCIAL MONITORING REPORT Semi-Annual Report (July-December 2017) Loan/Grant Number(s): L2851-NEP; G0284-NEP Integrated Urban Development Project (IUDP) Prepared by Department of Urban Development and Building Construction IUDP, Project Coordination Office, for Ministry of Urban Development and the Asian Development Bank I

2 CURRENCY EQUIVALENTS (As of 30 June 2017) Currency unit - Nepalese (NPR) NPR 1.00 = $ $ 1.00 = NPR This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgements as to the legal or other status of any territory or area. ii

3 TABLE OF CONTENTS 1. INTRODUCTION PROJECT BACKGROUND OBJECTIVE, APPROACH AND SCOPE OF SEMI-ANNUAL MONITORING Objective Approach Scope of Semi -annual Monitoring CHANGES IN SOCIAL SAFEGUARD SCOPE SOCIAL SAFEGUARD MONITORING PARAMETERS STATUS OF THE SOCIAL SAFEGUARD IMPLEMENTATION Status of updated Resettlement Plan SAFEGURD IMPACTS LAND ACQUISITION AND COMPENSATION DISBURSEMENT STATUS PROCESS FOR ACQUIRING LAND FOR LANDFILL SITE GRIEVANCE REDRESS MECHANISM ESTABLISHMENT FOR SAFEGUARD DESK PUBLIC CONSULTATION ISSUES STATUS OF COMPLIANCE WITH LOAN AND GRANT COVENANTS Annexes: Annex 1: Grievance record of Janakpur SMC Annex 2: Meeting minutes of Dharan SMC Annex 3: Agreement between Dharan SMC and Bijayapur Palace Protection Committee iii

4 List of Acronyms and Abbreviations ADB APs CDC CDO DAO DDR EMP GRC GRM HH IEE IUDP JSMC LACFC MoFALD MoUD NSMC PCO PIU PMSC PPTA RoW RM RP SLFS Asian Development Bank Affected Peoples Compensation Determination Committee Chief District Officer District Administration Office Due-Diligence Report Environmental Management Plan Grievance Redress Committee Grievance Redress Mechanism House Holds Initial Environmental Examination Integrated Urban Development Project Janakpur Sub-Metropolitan City Land Acquisition and Compensation Fixation Committee Ministry of Federal Affairs and Local Development Ministry of Urban Development Nepalgunj Sub-Metropolitan City Project Coordination Office Project Implementation Unit Project Management Support Consultant Project Preparation Technical Assistance Right Of Way Rural Municipality Resettlement Plan Sanitary Land Fill Site iv

5 SMC SMR Sub-Metropolitan City Safeguards Monitoring Report v

6 DEFINITION Acquisition: Acquisition of land and other assets for the purpose of development projects in accordance to prevailing Land Acquisition Act 1977 (2034 BS). Displaced Persons: Affected persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and economically displaced (loss of land assets, income sources, or means of livelihood) as a result of involuntary resettlement of land, involuntary restrictions on land use or on access to legally designated parks and protected areas. Indigenous People: Nepal indigenous/nationalities/tribal Act 2001defines Ethnic/ Indigenous Peoples as; people having their own mother tongue, distinct traditional values, and cultural identities, including social structure and written/non written history are indigenous and nationalities population. The National Foundation of Indigenous Nationalities (NFIN) has declared 59 groups as ethnic nationalities. Rehabilitation: The measures taken to mitigate social impacts, including compensation, resettlement and rehabilitation allowances where required. Replacement Cost: The market value of a project affected assets. For agriculture land, this includes reference to land of equal size, type and productive potentiality in the vicinity of the affected land and land preparation costs where required. For houses and other structures, this includes reference to the market price of materials and labor, and the cost of transporting materials to the building site. The replacement cost further includes the cost of any registration and transfer taxes for land and buildings. Resettlement: Resettlement denotes the consequence that occurs due to acquisition of land and other assets as well as the entire process and activities related to acquisition and implementation of resettlement plan in accordance to prevailing Acts. Right of Way: Right of way means the land acquired for the project purposes. Generally, government declares 50 meter for National highway and 30 meter for feeder roads. Sub project Level Grievance Redress Committee: Rural Municipality or municipality level committee established to assist the affected people, legally constituted committees for land acquisition and project authorities, monitoring of implementation issues and community reactions and grievance resolution. Severely Project Affected Family: Family having more than 10 percent loss of total landholding or income is considered as severely affected family. Titleholder: The person in whose name the project-affected land, structure, business is registered and who is authorized to receive the compensation granted for the loss of business or acquisition of the land and assets. vi

7 Vulnerable Persons: The disadvantaged persons such as disabled, women headed households, handicapped, independent elderly persons (70 years and above age), and households with disable persons, ethnic occupational cast and below poverty level households. vii

8 1. INTRODUCTION 1. This report describes the implementation of social safeguards activities, covering the period from July to December, The Social Monitoring Report (SMR) covers in particular the progress of the implementation of the Updated Resettlement Plans of four project municipalities/smc, issues identified during implementation of project activities and compensation distribution and deed transfer of affected assets. It also describes the need of preparation of updated resettlement plan for Janakpur municipality. 2. PROJECT BACKGROUND 2. The project aims to improve the quality of life, promote socially inclusive development and support increased economic growth in four municipalities/sub-metropolitan City (SMC) in Nepal namely Dharan, Janakpur, Siddharthanagar and Nepalganj. These goals will be achieved through improvements in the effective and efficient provision of affordable basic municipal services. These improvements will focus on water supply, storm water drainage, solid waste management and urban road and lanes and together will constitute integrated urban development package for each municipality. 3. During the PPTA, resettlement plan of three municipalities/smc i.e. Janakpur, Siddharthanagar and Nepalganj was prepared and endorsed by Government, concerned municipality and ADB in September Further, the approved resettlement plans were prepared based on preliminary project design, therefore it was to be updated after final detail engineering design if the additional impact identified as compare to PPTA report. Accordingly, updated resettlement plans were prepared, reviewed and submitted to ADB for additional impacts that were seen during interventions of project activities. Proposed sub-projects components is given in table below; Table 1: Proposed Sub-Project Components Subproject Municipality/SMC Land Acquisition Nepalgunj Siddharthanagar Janakpur Storm water drainage Improvement and Development of storm water drainage covering majority area of municipality Improvement and Development of storm water drainage covering majority area of municipality Improvement and Development of storm water drainage covering majority area of then municipality Drainage will be constructed within RoW in Janakpur and Siddharthanagar whereas some portions of land is acquired in Nepalgunj. 1

9 Solid waste management Roads and lanes Construction of sanitary landfill site at Ward no. 7 of Hirminiya VDC and 8.47 ha of land is required for the development of landfill site. Also additional hector of land will be acquired Reinstatement of Urban Roads Construction of sanitary landfill site at ward no 8 of Patkhauli VDC and total of 4.06ha of land is required for the development of landfill site. Reinstatement of Urban Roads The alternative site is identified at Bhoyal, JSMC-18 and land acquired and is being finalized. Alternative Transitional plan has been prepared for temporary management of waste Reinstatement of Urban Roads Nepalgunj SMC and Siddharthanagar Municipality have already acquired land from private owners; some disputes for additional land required is still due and Janakpur SMC has acquired land as agreement between Guthi Trust and SMC has been done. The required land falls under existing RoW which is Determined on 1999 by the Municipalities/SMC based on Building Bylaws. Source: Resettlement Plan 2011, 14 T A 7727 NEP; Field visit OBJECTIVE, APPROACH AND SCOPE OF SEMI-ANNUAL MONITORING 3.1 Objective 4. The objective of the semiannual monitoring report is to assess progress on safeguard plan implementation of the subproject roads, drainage, water supply and solid waste management including compensation payment, deed transfer of affected plots, progress on reinstatement of public utilities, establishment of Grievance Redress Mechanism (GRM) and its operation and issues identified during implementation. 3.2 Approach 5. The following tasks were undertaken for preparing this report: Review the related project documents and field visits Discussion with the Municipality/Sub-metropolitan City, PIUs, DSCs and other relevant stakeholders 3.3 Scope of Semi -annual Monitoring 6. The social safeguard monitoring is guided by the ADB Safeguard Policy Statement 2009, Resettlement Framework of IUDP, Land Acquisition Act of Nepal 1977 (2034 BS) and other relevant policies and guidelines. This monitoring report is focusing on the social safeguard implementation including appropriate measures to minimize the resettlement impact during project 2

10 implementation. Land acquisition and compensation payment to the affected land and assets, measures to redress the grievance appeared during project implementation 7. It has been agreed to prepare and submit social safeguard monitoring semi-annual report to provide the status of social safeguard plan implementation of IUDP. The reporting period covers 6 months from July to December During this period, updated resettlement plan implementation status, land acquisition for landfill site, issues identified and its solution measures and safeguard monitoring activities have been provided. 4. CHANGES IN SOCIAL SAFEGUARD SCOPE 8. During the PPTA, resettlement impacts were not envisaged as significant as seen in implementation period. There needs to be prepared updated resettlement plan as SWM projects require more land and for access road and sanitary landfill sites. Many issues have been seen in implementation period hence the resettlement plans need to be updated coupled with compensation payment increased due to design change and addition of access road and relocation of sanitary landfill site. 5. SOCIAL SAFEGUARD MONITORING PARAMETERS 9. The following parameters have been applied during social safeguard monitoring: Progress on land acquisition and compensation payment Procedure of compensation rate determination and compensation payment delivery system (easiness, transparency etc.) Rehabilitation of public utilities Establishment of Grievance Redress Mechanism (GRM) and Safeguard Desk Public consultation and disclosure activities Status of updated resettlement plans Exploration and finalization of sanitary landfill site Status of vendor and hawkers due to intervention drainage system 6. STATUS OF THE SOCIAL SAFEGUARD PLAN IMPLEMENTATION 6.1 Status of Updated Resettlement Plan 10. PPTA has provisioned that, if additional losses found during detailed design, existing plan will be updated and submitted to ADB for concurrence prior to commencement of civil works. Three updated RPs have been received from Janakpur, Siddharthanagar and Nepalgunj Municipalities/SMC and reviewed and submitted to ADB. A resettlement plan was also prepared for Dharan SMC as some private lands were needed to be acquired to construct reservoir. 11. During PPTA, resettlement impact was not envisaged for implementation of Water Supply Sub-Project in Dharan SMC however, detailed design shows that some private land will be 3

11 needed for construction of reservoir. Hence, a Resettlement Plan has been prepared. Three households have lost 729 sqm land comprising 5 numbers of plots. 4

12 12. Janakpur SMC has explored alternative landfill site at Bhoyal, JSMC-18 and conduction of loss inventory of affected land is yet to be started. The land is under Guthi trust however agreement between municipality and Guthi trust has been done. The updated resettlement plan needs to be prepared for landfill site incorporating road and drainage part as an integrated report. The community people are unconvinced on construction of sanitary landfill site and opposing that the site should not be constructed at Bhoyal. Consultations towards making conducive environment for landfill site is being initiated by the newly elected local bodies. As reported by the DSC, things are going towards positive direction. Discussion is underway for planning of exposure visits for community people in other suitable sites. 13. Likewise, updated resettlement plan of Siddharthangar Municipality is yet to be prepared as timeline set by the ADB mission is over. Issues related to landfill site and access road has to be incorporated in the plan. The PCO is constantly following up for preparing the updated resettlement plan. The PIU has reported that they are working on it and will submit the plan very shortly. The exposure visit to landfill site for community people has been planned for 9 January Altogether 120 persons of surrounding areas of proposed sanitary landfill site will be visiting to Pokhara SMC and Waling municipality. 7. SAFEGURARD IMPACTS 14. Safeguard impacts in Dharan SMC was minimal as some portion of land was acquired for construction of reservoir and compensation for the land is already paid by the DSMC. However, some concerns were shown by different ethnic groups for construction of reservoir in Dharan 14, Panchkanya/Bijayapur as PCO safeguard expert conducted meeting with the groups, PIU and other concerned stakeholders along with ADB mission. ADB has also stressed for making amicable solution of the issues in their recent mission. 15. The updated Resettlement Plan for storm water drainage and road subproject has been prepared in Janakpur SMC. The detailed design indicated that no additional impact was identified. Most of the structures that have been demolished are within the existing RoW, thus no likely resettlement impact has been envisaged. Alternative places will be explored by the Janakpur SMC for Vendors/hawkers if any temporary impact will occur during construction period. The Janakpur SMC ensured that all the demolition in proposed road and drainage section is within the RoW and it was cleared by the Janakpur SMC. Transitional plan has also been prepared to manage SMC waste until alternative landfill site is explored and formally finalized. The landfill site that was previously proposed at Fulgama VDC had local peoples' opposing resulting cancellation of that site. Contract has been awarded and also construction work is ongoing for storm water drainage and road, the location of landfill site has been finally proposed at Bhoyal, JSMC-18. The land is under Guthi Sansthan ownership and agreement has been made between the Guthi trust and Janakpur SMC. Total area of land is about 8.49 hectare comprising 32 plots. The JSMC is working on acquired land by identifying losses incurred by the project interventions. The losses inventory preparation is delayed as DSC safeguard expert is recently mobilized in Janakpur. 5

13 16. Resettlement impacts have not been seen in Siddharthanagar municipality on storm water drainage and road subproject as the structures demolished along the road and drainage fall under existing RoW which was finalized by the municipality on 1999 on the basis of Building Bylaws, thus no scope of resettlement impact found in aforesaid subprojects. Further, the house owners are voluntarily demolishing their houses as requested by the Municipality as reported by Project Manager. Some trees have to be cut down in Sanitary Landfill Site during construction of landfill site structure. The owner will remove the trees and thus no compensation needed for the trees. Vendors/hawkers had shifted their business in different places during drainage and road construction and have reinstated their business in original places after the completion of construction works. Hence, compensation is not needed for them as no impact recorded on their livelihood due to project interventions. Further, as reported by the DSC, the Municipality is planning to build permanent structures for vendors/hawkers in specific location proposed by the Municipality. The proposed location are; Khajana path, Maitri path and Bimanghat path. 17. Standing cash crops have been damaged by the access road construction for transportation of construction materials. The losses inventory was recorded and DSC has recommended to GRC for loss incurred by the access road. These losses were identified in Lumbini road to Maudihawa Chowk through Galamandi and Durga Khola road. The payments of these losses have been included in the contractor's Bill of Quantity (BoQ). Process for compensating the losses has already been initiated. In Anchalpur chowk to Sano Dumdumwa Khola diversion drain, the original design was stone pitching and trapezoidal structure resulting requirement of additional land beyond the Right of Way (ROW). The surrounding people were claiming for the compensation for the loss of land along with construction of crossing structure. To avoid the losses, the DSC redesigned the proposed structure in rectangular shape thus avoided the need for acquiring additional land. 18. Alternative access road for sanitary landfill site was explored and land acquisition for the road was completed. Total 0.4 ha of private land from 15 households is acquired and cost of land is determined as a replacement value which amounts NRs. 3,256, However, two affected households are found reluctant to receive the compensation amount claiming that the amount fixed is less than the market price. The PMSC expert visited the site and consulted affected persons and other community people that the amount determined by CDC was based on replacement value. It is natural phenomenon that the price escalation has been seen over the two years period. The original rate fixation was done two years ago. The claim is not found logical and recommended to DSC to deposit the amount in District Administration Office. 19. Significant resettlement impacts have not been seen in Nepalgunj SMC on storm water drainage and road subproject as the structures demolished along the road and drainage do not fall under existing RoW which was finalized by the Nepalgunj SMC on 1999 on the basis of Building Bylaws. However, during physical construction, some impacts on private land, structures and access to private houses have been seen due to construction of drainage. The complaints were also submitted in Nepalgunj SMC for the impacts incurred by the project interventions. Some private land has been affected during construction of Kontipur outfall system due to trapezoid 6

14 design and earthen nature of the drainage resulting access to the agriculture field has been lost. For this, the Nepalgunj SMC has installed Hume pipes sufficiently for crossing to the agriculture field. It has been observed that no more issue remains in this regard. 20. Regarding the complaint of land owner to reinstate boundary wall and latrine damaged during construction of Dondra Khola storm water drainage at ward no. 15, Koreanpur, Nepalgunj SMC; the Nepalgunj SMC has made contract with the concerned land owner to reinstate the damaged boundary wall and construct improved toilet with septic tank. The reinstatement and construction of these loses has been completed. The two house owner in Paraspur initially created obstacle by not demolishing the front part of their houses to construct the drainage. It is reported that the house owners themselves built the house with the help of community people as no severe impact has been recorded by these losses. The Mission noted that most of the corrective actions regarding social safeguards recommended by previous review mission have been complied with. The mission raised serious concern on delay in implementation of agreed action. During the Mission, the complaint informed the Mission over the phone that he has requested for cash compensation instead of construction of toilet in Koreanpur. The Nepalgunj SMC had constructed the toilet however the owner was not satisfied and claimed some cash from the NSMC. The NSMC provided NRs 58,000 as cash compensation. NRM is satisfied with the process adapted to resolve his complain and decided to close the case. 8. LAND ACQUISITION AND COMPENSATION DISBURSEMENT STATUS 21. Project Implementation Unit (PIU) of Nepalgunj and Siddharthanagar has distributed land compensation for landfill site to the owner and ownership transfer of acquired land has also been completed. Nepalgunj SMC has acquired 8.47 ha land from four land owners which is about 1 ha more than the original plan. This is because of 1 ha land is not useful for land owner as it lies in middle part of the acquired land. Discrepancies were seen between the amount of private land to be acquired as per approved draft RP and land acquisition for landfill site. The field visit was made to Nepalgunj SMC and found that the payment has been made as a replacement cost by following negotiation process as per land acquisition act 1977 where land owner were asked to come for negotiation in District Administration Office (DAO) under Land Acquisition and Compensation Fixation Committee (LACFC) and finalized the unit rate for affected land consensually. Land owners are satisfied with the payment they received from the PIU. 22. Similarly, total of 4.06 ha of land have been taken from one land owner in Siddharthanagar out of 5.41 ha which seemed a bit lower as compare to PPTA report ha land is not required due to technical reasons. The payment for landfill site land is based on unit rate mentioned in PPTA report in which cost variation has not been identified in line with the PPTA report. The payment has been made as a replacement cost following due process collecting market and government unit rates before submitting to Compensation Determination Committee (CDC) for fixation of compensation amount. No structure has been observed in both landfill sites in Siddharthanagar and Nepalgunj except few private trees in Siddharthanagar landfill site. It has been agreed with tree owner in Siddharthanagar that, construction location of landfill site s tree would be removed by owner himself and compensation would not be paid for the same. However, PIU would be responsible to pay compensation for remaining trees outside the construction location as per market and district forest office rates. Some 25 numbers of trees 7

15 have already been removed by tree owner. 23. Moreover, total 0.4 ha of private land of 15 households is acquired for sanitary landfill site's access road in Siddharthanagar municipality and cost of land is determined as a replacement value which amounts NRs. 3,256, However, two affected households are reluctant to receive the compensation amount claiming that the amount fixed is less than the market price. The PMSC expert visited the site and consulted affected persons and other community people that the amount determined by CDC was based on replacement value. It is natural phenomenon that the price escalation has been seen over the two years period. The original rate fixation was done two years ago. The claim is not found logical and recommended to DSC to deposit the amount in District Administration Office. Similarly, deed transfer of 17 affected plots is also completed. 24. In Janakpur SMC, the landfill site that was originally proposed at Fulgama VDC had some disputes resulting cancellation of that site. Since contract has been awarded for storm water drainage and road, the location of landfill site has been identified and being finalized at Bhoyal, JSMC-18. The land is under Guthi Trust ownership and agreement has been made between Guthi trust and JSMC. Total area of land is about 8.49 hectare comprising 32 plots. The JSMC has acquired the required land. Loss inventory and socio-economic survey of affected households is yet to be started. The DSC is responsible for the preparing updated Resettlement Plan for landfill site. 25. The resettlement plan was not prepared in Dharan SMC during PPTA, though the resettlement impacts were found during detailed design and hence resettlement plan has been prepared. All together 729 sqm private land has been acquired from three households comprising 5 plots. The compensation amount has been fixed by the LACFC following due process as a replacement value. The detail of land acquisition and compensation payment status is given in table 2. Table 2: Land Acquisition and Compensation Disbursement Status Municipality/ SMC Land to be acquired based on RP Actual land has been acquired compensation paid (NRs) Remarks Nepalgunj 7.41 ha 8.47ha 21,250, % compensation paid for 4 affected land owners on 23 May 2013; about 1 hector more land is needed as it was not useful for land owner 8

16 Siddharthanagar 5.81 ha 4.46 ha 13,456, % compensation paid for one affected land owner for landfill site in June 2012; whereas 85% compensation amount has been paid for landfill site access road.1.35 hector land is not required due to technical reason. Dharan 0.07 ha 0.07 ha 5,115, % compensation paid for 3 household comprising 5 plots 9. PROCESS FOR ACQUIRING LAND FOR LANDFILL SITE Table 3 indicates process followed while acquiring the land for development of landfill site based on PIU reporting. Table 3: Process for Acquiring Land for Landfill Site Activity Nepalgunj Siddharthanagar Janakpur Dharan New Madesh Gorkhapatra daily Land National Acquisition daily process The Local officer(cdo) Issues notice including purpose of Date of Notice published 10 June, July, 2011 GoN assign Government Executive officer to officer begin preliminary action Necessary preliminary survey including boundary demarcation of landfill site Land revenue office report on area and location of land to be Formation of CDC. CDC meeting was held for 10. GRIEVANCE REDRESS MECHANISM 19 March, 2012 completed 30 Jan through 2015 Executive officer land Executive agreement officer with Guthi corporatio Yes Yes n on 3 Yes March,201 7 Yes Yes Yes Gorkhapatra daily 6 August, March, March August, March, March Grievance Redress Mechanism has been established in all project municipalities/smc. It has been observed that the GRM is less functional as regular meetings have not been conducted so far. It is suggested by the ADB that the informal grievances should also be recorded and make amicable solution for the same. 9

17 11. ESTABLISHMENT OF SAFEGUARD DESK 27. The Safeguard Desk has been established in Dharan, Janakpur and Siddharthanagar Municipality/SMC. The Safeguard Desk in each municipalities/smc will organize monthly meeting to i) assess the safeguards compliance performance as guided by EMP and RP; ii) identify area of gaps, if any; iii) agree on timely corrective action plan to mitigate the impacts; and iv) prepare periodic safeguard monitoring reports. 12. PUBLIC CONSULTATION 28. Public consultation was held in Dharan SMC for reservoir construction at Dharan 14, Bijayapur as different ethnic groups were not in favor of installing reservoir in the PIU proposed site. Disputes arose as the ethnic groups showed reluctance to let construct reservoir at the site as they claimed that the Bijaypur's cultural heritage would be destroyed by the construction of reservoir. 13. ISSUES 29. It has been reported by PIU that, having local bodies in the Nepalgunj SMC has become easier to facilitate to the land owner under landfill site where hector of land comprising 5 parcels of two land owners Siddhant Jung Rana and Anklia Tharu need to be acquired. The land owner has brought the case into the high court in Tulsipur resulting in court's stay order for further construction of landfill site. Plan of action has been made to acquire the disputed land by Municipality. The budget for the land has been allocated and negotiation for the rate is being carried out with the land owner. It has been almost agreed on negotiated rate by the owner. 30. The Grievance Redress Mechanism is established in the Nepalgunj SMC. The grievances are recorded properly and grievance redresses have been made on priority basis. The Safeguard Desk in SMC will be established very shortly with making it effectively functional. The disputed land demarcation point is seen indicated in the premises of landfill site. Some physical progress has been made including some infrastructures related works such as; office building, generator house, boundary fencing and garage. 31. In regards of progress on site for reservoir construction in Dharan- 14 Panchkanya/Bijayapur, four religious groups were not in favor of construction of reservoir earlier. However, consequently after having rigorous consultation and meeting with groups by the SMC and PIU, two groups expressed their no objection while another one group seem positive and a group called Kirat Yakthum Chumlung was reluctant to provide the consent. Finally, the consequent of vigorous consultation with the ethnic groups, an agreement have been made between Dharan SMC and Bijayapur Palace Protection Committee on 23 January 2018 to provide the land for reservoir construction. At the same time, to address the ample demand of different ethnic groups for protection of Bijayapur palace, the Indigenous People Development Plan (IPDP) would be prepared and implemented. 10

18 14. STATUS OF COMPLIANCE WITH LOAN AND GRANT COVENANTS S.N Covenants Status of Compliance Sector Implementation Arrangements 1 Resettlement The Beneficiary shall ensure or cause MOUD and MOFALD to Complied with/ ensure, that all land and all rights-of-way required for the Being complied with. Project, each Subproject and all Project facilities are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Beneficiary relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the RF, for Subproject under Part 2 of the Project; and (d) all measures and requirements set forth in the RP, and any corrective or preventative actions set forth in the Safeguards Monitoring Report (Schedule 5, Para 4) Without limiting the application of the involuntary complied with Resettlement Safeguards, the RF or the RP, the Beneficiary shall ensure or cause the MOUD to ensure, that no physical or economic displacement takes place in connection with the Subprojects until: (Schedule 5, Para 5 a&b) (a) compensation and other entitlements have been provided Complied with. to affected people in accordance with the RP, the cost of which shall be borne by the Beneficiary and the relevant Municipality; and 2 Safeguards Related Provisions in Bidding Documents and Works Contracts The Beneficiary shall ensure or cause MOUD to ensure that all bidding documents and contracts for Works contain provisions that require contractors to:(schedule 5, Para 8a to 8e) (a) comply with the measures relevant to the contractor set forth in the IEE, the EMP, the RP and any indigenous peoples' plan (to the extent they concern impacts on affected people during construction), and any corrective or preventative Being Complied With. Provision has been made in bidding documents Remarks 11

19 S.N Covenants Status of Compliance actions set forth in a Safeguards Monitoring Report; and contracts for Works. (b) make available a budget for all such environmental and Being Complied social measures; With. Budget provision has been made in bidding documents and contracts for works. (c) provide the Beneficiary with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP or any indigenous peoples' plan; (d) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and e) fully reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction. 3 Safeguards Monitoring and Reporting The Beneficiary shall do the following or cause MOUD to do the following: ( Schedule 5, Para 9a to 9 c) (a) submit semi-annual Safeguards Monitoring Reports to ADB and disclose relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP or any indigenous peoples' plan, promptly inform ADB of the occurrences of such risks or impacts, with detailed description of the event and proposed corrective action plan; and (c) report any actual or potential breach of compliance with the measures and requirements set forth in the EMP, the RP or any indigenous peoples' plan promptly after becoming aware of the breach. Being Complied With / Will be followed. Being Complied With/ Will be followed. Being Complied With/ Will be followed. Complied with/ Being complied with. Seven semi-annual SMR prepared and Complied with. Will be followed. Remarks 12

20 ANNEXES 13

21 Annex 1: Grievance Record of Janakpur SMC 14

22 Annex 2: Meeting minutes of Dharan SMC on Reservoir Installation 15

23 16

24 17

25 18

26 19

27 Annex 3: Agreement between Dharan SMC and Bijayapur Palace Protection Committee 20

28 21

29 22