FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ETHIOPIAN ROADS AUTHORITY

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ETHIOPIAN ROADS AUTHORITY Consultancy Services for Detail Engineering Design And Tender Document Preparation of Mizan-Dima Dima-Boma Road Project UPDATED RESETTLEMENT ACTION PLAN REPORT MIZAN-DIMA:CONTRACT DIMA:CONTRACT-1 HIGHWAY ENGINEERS & CONSULTANTS (HEC) PLC TEL FAX P.O. BOX 6951, ADDIS ABABA MARCH 2012

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3 Table of Contents Page ANNEXTURE... ii ABBREVIATIONS... iii Executive Summary... iv PART I: BASIC INFORMATION... 1 PART II: OBJECTIVES... 3 PART III: PROJECT DESCRIPTION AND RATIONALE FOR RAP... 6 PART IV: LEGAL AND INSTITUTIONAL Political Economy and Governance in Ethiopia LEGISLATION AND REGULATION Acquisition and Valuation of Land and other Assets Human Right, Compensation and Involuntary Resettlement Dispute Resolution and Grievance Mechanisms Comparison between national law and Bank OP Institutional and Administration Framework V. PUBLIC CONSULTATION AND DISCLOSURE PLAN Consultation with Community Representatives Key Persons Interview Consultation with Local Administration Mitigation Measures Proposed by the Consulted Community Group Community Participation VI. THE RAP DISCLOSURE VII. ENTITLEMENTS MATRIX AND ELIGIBLE PARTIES VIII. DESCRIPTION OF BASELINE CONDITION OF THE PROJECT AREA Socio-Economic Environment Demography, Ethnicity and Religion Economic Activities Social and Economic services Socio-Economic Profile of the Project Affected Persons i

4 8.6 Socio Economic Implication POTENTIAL IMPACTS AND MITIGATION MEASURES OVERALL ASSESSMENT Positive impacts of the proposed road project Adverse impacts of the proposed Road Project IX. RAP IMPLEMENTATION COST ANALYSIS AND BUDGET X. ENVIRONMENTAL PROTECTION & MANAGEMENT XII. DESCRIPTION OF ORGANIZATIONAL RESPONSIBILITIES XIII. DESCRIPTION OF PROVISIONS FOR REDRESS AND GRIEVANCES XIV COMPENSATION IMPLEMENTATION SCHEDULE XV. FRAMEWORK FOR MONITORING AND EVALUATION XVI. CONCLUSIONS References: ANNEXTURE ANNEX 1: World Bank Resettlement Policy Framework (RPF) ANNEX 2: Glossary of Terms ANNEX 3: Relevant Laws Annex 5: Survey Questionnaires ANNEX 6: Minutes of Meetings on Different Project area ANNEX 7: List of Affected persons, Institutions and their Properties ANNEX 8: Photo of type of properties to be affected ANNEX 9: Photo of Public Consultation ANNEX 10: Unit Price Rate of the different Assets ANNEX 11: Land Acquisition Plan ANNEX 12: Response for the comments ii

5 ABBREVIATIONS AAOV ADLI CBO CSA CSE EEPCO ESMT EMP ESIA FDRE FGD FHH GRC GCRC HIV/AIDS Ha HHs IAPs IMU KEBELE: MoFED NGO PAPs OP RAP RP RPF RoW SEIA TOR WOREDA Annual Average Output Value Agriculture Development Lead Industrialization Community Based Organization Central Statistical Authority Conservation Strategy of Ethiopia Ethiopian Electric and Power Corporation Environmental and Social Management Team Environmental Management Plan Environmental and Social Impact Assessment Federal Democratic Republic of Ethiopia Focus Group Discussion Female Headed Households Grievance Redress Committee Gross Current Replacement Cost Human Immune Virus / Acquired Immune Deficiency Syndrome Hectare Households Interested and affected parties Independent Monitoring Unit Smallest Administrative Unit (Ethiopia) Ministry of Finance and Economic Development Non Governmental Organization Project Affected Persons Operational Policy of the World Bank Resettlement Action Plan Resettlement Program me Resettlement Policy Framework Right of Way Social and Environmental Impact Assessment Terms of Reference District Level Government Administrative Division iii

6 Executive Summary BACKGROUND The total length of the project road is about 91.6 km. The total road length falls in the Southern National Regional State and Gambela National Regional State. The socio-economic features along the proposed road alignment are briefly described below based on information obtained through field surveys, consultations with key informants and review of the previous study The Project road is located in the Southern National Regional State and Gambela National Regional State. The Project starts at Mizan Teferi town on Mizan Jima Road. Mizan is located 875km from Addis Ababa. At present there is only one alternative to reach Mizan, through Jima-Mizan Road. The road with a distance of 91.6 km passes through several towns and villages of Aman, Guraferda, Kuja and Dima. The road has a wider geographical area in which the road could lead to new or expanded interaction in economic activity and associated transport movement as a result of changes in the rode network. This area effectively encompasses most of the Western Oromiya Region and Eastern Southern Regional National States. In addition, the road has regional influence in terms of connecting Debub Bench zone from West and South West parts of the Gambela and Oromiya from to Mizan towns. The road also forms part of the long distance links to Addis Ababa Southern Regional National State through Debub Bench zone. It is seen as one of Regional important road links. Though the recent maintenance has improved the road quality on certain sections, the traffic volume is increasing, causing constraints for agricultural products movement and reducing the level of service offered by the road. SCOPE OF THE RAP STUDY The scope of this RAP study is limited to assess potential, positive as well as adverse impacts of the project road within the direct and indirect influence areas and to propose mitigation measures for adverse impacts. The project direct influence areas include road right of way, quarry sites, and borrow areas, construction campsites, nearby water sources, waste disposal sites and communities residing within 30 meters of RoW. The study in towns consider 20 meters RoW to minimize the social impacts specially damages of infrastructures, since it is found that towns along the roads are reside within 30 meters of RoW. iv

7 METHODOLOGY Documents on relevant policies, guidelines and legislations were reviewed primarily to describe the relevant policies and legislative framework within which the socioenvironmental assessment is undertaken. Then, relevant data and information were collected from regional, zonal and wereda level Government Organizations that are involved in public administration and development activities in the project area Formal structured interviews as well as informal discussions with the local people, project affected individuals and officials were held in different wereda and kebele level along the roads to obtain their ideas about the proposed project. PUBLIC CONSULTATIONS The study team has consulted the project area wereda administration (Debub Bench Zone, Mizan Town Administration and Guraferda Wereda) and project affected persons to grasp their views on the project road. The consulted people and the Wereda officials noted that the construction of the project road is one of the key development issues of the area. All of them believed that the realization of the proposed road construction will improve the socio-economic development of the areas. They stressed that the realization of the project road will create easy access to the federal city and other regional towns through regular access of public transport and truck transport. During the consultation, the local Administration officials promised: To provide as much as possible replacement land for the relocation of affected persons if any; To keep the ROW and prevent people not to build any houses in the designated ROW width; To deliver all necessary support to the project affected persons during the relocation and compensation processes. POPULATION AND SETTLEMENT PATTERN At present the project area (Mizan -Aman, Guraferda and Mizan) has a population of about 77,751; of which 53% are urban and 47% are rural and the average household size is about 5. The settlement pattern of the Wereda population is dispersed. The population densities vary from 14 person/km 2 in Guraferda Wereda to 11 person/km 2 in Gambela Wereda. The project area is sparsely populated area with large part is uncultivated land. There are a number of towns traversed by the project road. On the average towns have a population growth rate of 3% per year. Mizan Teferi town at the beginning few v

8 section of the road are characterized by a high density area while other towns like Guraferda and Dima are low density area of the country and the region. The population growth rate of the region is 2.9 % per annum with an average population density of 127 per sq.km; however, in the zones traversed by the project road the population density is higher: 14 per sq.km in Bench Maji zone and 11 Dima/Gambela. These densities are very low than the national and regional average. (Regional Statistical Abstract, June, 2006). The average family size in the project area is 5. Ethnicity, Religion and Language The major ethnicity of the PAPs is Bench, Amhara and Oromo with few other ethnic communities. The major religious affiliations are Islam, Orthodox and Protestant. MAIN ECONOMIC ACTIVITIES The major economic activity in the study area is agriculture particularly for the rural population where subsistence farming is the dominant means of earning a living. The major economic activity for urban residents is trading. There are large uncultivated lands in the area and low farming densities and as a result farm holding per head is high and reported to be 2-3 hectares per head. Although there is some similarity in economic activity between the Woredas, there are also differences resulting from the ecological variation in the area. The economic activities prevailing in each Woreda are discussed below. Some of the project Woredas is known in coffee production. These are Gurafera, Debub Bench and Bero Woredas. In Guraferda Woreda there is Bebeka coffee plantation undertaken by the government. Private investors started coffee plantation on 2468 hectares of land in Guraferda Woreda. Besides, the farmers produce coffee in Debub Bench and Bero Woredas. Generally, coffee was planted on more than 1238 hectares of land and 368,460 quintals of yield was harvested in fiscal year PROJECT IMPACTS Positive Both beneficiary and adverse socio-environmental impacts are anticipated from the upgrading road project. The major beneficiary impacts are reduction of existing dust problem and associated health impacts, reduction of travel time and transportation cost, increase of access to transportation and opportunity of job creation for the skilled and unskilled local people along the road route and contribution for the overall economic growth of the country. vi

9 Adverse Impacts The Road mainly involves upgrading to Asphalt Concrete from Mizan to Dima. Its overall impact on physical environment is moderate. However, due to the development of towns and settlements close to the existing road, there will be impact on social environment. Few houses are already constructed with in 30 m of road right of way at different stretches of the road. Residential houses will be affected. It is estimated totally 340 houses are affected due to the project for different reasons. Detail is included in the table below. Other impacts include loss of farm and grazing lands, destruction of natural vegetation situated within the 30 m ROW and lose of road side eucalyptus plantation in most of the road adjacent. To overcome or minimize the identified adverse impacts and other possible negative impacts, appropriate mitigation measures are proposed. MAIN FINDINGS: Briefly the following indicates main findings and impacts of the road construction. Road Length: 91.6 km Status of the road: DS4 Road Functional Classification: (link) Proposed Surface type: Asphalt concrete Total Affected Persons: 2,150 The width of the road is 10m in rural section and12-19m in urban section. The maximum grade in this road project is 12% vii

10 Description Impacts in Quantity Number of households who lose house fully 73 Number of households who lose house partially 267 Private fences affected in meters 7,775 Number of institutional buildings affected fully No Number of institutional buildings affected partially 2 Number of institutional fences in meters No Loss of agricultural lands permanently in hectares, of 210 which 73.6 ha coffee farm. Loss of agricultural lands temporarily in hectares, of 34.8 which 18.8 ha coffee farm(out of RoW) Number of households who lose strips of lands in RoW 16 Loss of tress in Number 1168 Number of households who lose tress 74 Loss of fruit trees Loss of telephone poles affected in Number Loss of Electric poles line affected in Number 1,154 Water pipe affected (diameter and total length) Total number of project affected persons 2150* Cut-off date * =430x5= 2150 The cut-off date for compensation eligibility was set, September 30, 2011 when the asset inventory and census secondly have been completed. Cultivating land, constructing buildings or settlements in project affected areas (in ROW) after the cutoff date will not be eligible for compensation or subsidies. Compensation will also not be paid for any structures erected, or crops and trees planted purely for the purposes of gaining additional compensation. No No No viii

11 RAP BUDGET The overall socio-environmental impact mitigations and compensation cost is estimated to be 123,479,587 birr and it is covered by the government of the Federal Democratic Republic of Ethiopia, through ERA. Items for Compensation Unit Quantity Total Cost of Compensation (Birr) Compensation for loss of dwellings number ,713,635 Compensation for loss of institutional Number 2 704,599 buildings Residential fences meters ,850 Compensation for loss of farm (crops & Hectares ,317,200 Coffee) lands with RoW Compensation for loss of farmlands out of ,282,000 RoW Permanent loss of Eucalyptus trees number 1, ,914 Relocation cost for Tele poles Number - Relocation cost for Electric poles Number ,100 Training for administration and RAP Lump 250,000 implementation sum HIV/AIDS Prevention Lump 500,000 sum Assistance to Vulnerable groups 500,000 Budget for RIC Lump 300,000 sum Environmental monitoring and evaluation 500,000 cost Administration 250,000 Sub-total 94,984,298 Contingency (30%) Grand Total 123,479,587 ix

12 PART I: BASIC INFORMATION 1. Country, Project Name: Ethiopia, Mizan -Dima Upgrading Road Project 2. Project development Objectives: The development objective of the project is to improve the road network of the country and community along the road. The construction of the project road is expected to improve the socio economic situation, and bring important changes in the livelihood of the populations that are crossed by the project. It could also contribute to the growth and development of trade and urban centers, improvement of crop and livestock production and its marketing network. 3. Project outcome: Briefly the outcome: Construction of 91.6 km length Paved Road Connecting 3 weredas of Mizan Aman, Guraferda in Southern Regional National States and one wereda of Dima in Gambela Regional National States and more than 5-6 small towns and kebeles, in both weredas Reduce vehicles driving time or travel time to all towns and werdas along the project road 4. Expected Project Benefit The Project is expected to have the following socio-economic benefits: (i) reduced Vehicles Operation Costs and travel times for traffic using the road corridor; (ii) the removal of constraints to economic growth (especially agricultural production) in the project area resulting from the poor condition of the existing road; (iii) improved environmental conditions (iv) increased jobs in townships crossed by the road. In addition, the improvements of the road network are expected to lead to the following benefits to communities: (i) reduced transport and agricultural input costs; (ii) increased opportunities for cash cropping; (iii) increased non-agricultural employment activity; (iv) improved access to markets, schools and health facilities. All the above will contribute to improving the standard of living of the poor and impact favorably On women and ethnic minorities living in the Project Area Connecting 4 weredas of Mizan Aman, Guraferda and Dima and more than 5-6 small towns and kebeles, in both weredas 1

13 Integrating market through better link and opportunity to diversify the highlands and low land crops and connecting major markets towns of Dima and Mizan up to Gambela. The road will solve administrative and security problems as government officials will have easy access to the area. It improves also the problem related to civil workers, as they are usually reluctant and complain to work in the area where better road network is lacking. Development for physical and social infrastructure (road, telecommunication, electricity, water supply, health, education, etc.) in the project area is at a very low level. Therefore, the population in the area is living in a situation where lacks these basic facilities. Thus, the implementation of the road will minimize these problems and promote the expansion of these infrastructures. It will increase non-agricultural employment opportunities. Thus, the proposed road will accelerate the highway network in the country and southwest parts of the country in particular, supporting Region Development Strategy of the country through improving transport conditions, facilitating the exploitation of agricultural and natural resources. This will contribute to poverty alleviation and promotion of the welfare of minority nationalities in the project area. 5. Identified Project Social Risk The major potential risks include the following, but not limited: Loss of productive lands under various uses due to land acquisition for the road right-of-way, establishment of campsites and material processing and storage sites; Increased risks of communicable diseases including HIV/AIDS; and STDS Increased risks of accidents to the local communities and their animals during the construction period. Water pollution resulted from disturbance of water courses during construction of culverts and bridges, enhanced soil erosion, Loss of naturally growing (indigenous) trees as well as planted trees due to land acquisition for the activities mentioned above; Disruption of utility services such as power transmission lines; Disruption of movements of people and animals due to increased traffic volume and speed; 2

14 PART II: OBJECTIVES 2.1 Objective of Resettlement Action Plan (RAP) The objectives of the Resettlement Action Plan (RAP) are to: Establish the Mizan-Dima Road Project resettlement and compensation principles and implementation arrangements; Describe the legal and institutional framework underlying Ethiopian approaches for resettlement, compensation and rehabilitation; Define the eligibility criteria for identification of project affected persons (PAPs) and entitlements; Describe the consultation procedures and participatory approaches involving PAPs and other key stakeholders; and Provide procedures for filing grievances and resolving disputes. The RAP will apply to all sub-projects/activities to be identified/areas to be demarcated. The procedures will be carried out throughout preparation and implementation, and impacts of any potential resettlement will be included in monitoring and evaluation (M&E). When a Resettlement Action Plan (RAP) is required, it will be prepared in accordance with guidance provided in this Resettlement Policy Framework RPF of The Bank, including Detailed Measurement Surveys, Identification (Census) of PAPs/displaced persons, and Public Consultation and Disclosure Procedures (PCDP). The RPF follows the guidance provided in the World Bank Operational Policy on Involuntary Resettlement (OP4.12), as described in Annex 1. The RAP ensures that any possible adverse impacts of proposed project activities are addressed through appropriate mitigation measures, in particular, against potential impoverishment risks. These risks can be minimized by: Avoiding displacement of people without a well designed compensation and relocation process; Minimizing the number of PAPs, to the extent possible; Compensating for losses incurred and displaced incomes and livelihoods; and Ensuring resettlement assistance or rehabilitation, as needed, to address impacts on PAPs livelihoods and their well being. 2.2 Methodology The methodology applied for acquiring data and information necessary for the socio-economic impact analysis of the project includes the following: 3

15 a) Field Visit A field assessment was carried out and an overall social feature along the project route is investigated. The whole length of the project road corridor was assessed through observations and interviews of local informants. The field visit was done twice during the inception phase and the feasibility phase for the detail survey of the impacts and to inventories all the assets to be affected and for consultation with relevant stakeholders of the project. b) Data collection Survey instruments; various survey instruments such as household questionnaires, land acquisition registration forms, checklists on public consultations, secondary data collection sheets, and others were developed prior to commencement of data collection; Secondary Sources: Previous study reports of the road, EIA and socio-economic studies of the road, and other relevant documents were reviewed. Reviews of information useful for the socio-environmental assessments, pertinent policies and guidelines have been reviewed to get relevant data and policy issues. Primary sources: To obtain first hand information about the socio-economic situation of the study area, impacts both human and physical, and attitude of the community a field visit was carried out and necessary observations and data collection has been made using survey questionnaire (attached) with help of local survey assistants over the entire road length. c) Public consultation Local administration of both at wereda and kebele level, key persons and some of the stakeholders were consulted. Furthermore, house to house interviewing and consultation of PAPs. The main objective of the consultation was to create awareness about the proposed road project among the community and stakeholders, to get attitude of the PAPs about their lost assets, to obtain background information relevant to socio-economic impact assessment and to understand the attitude of the local community towards the proposed project. The public consultation was carried out in different areas at different times mostly with groups and to some extent with key persons. Public consultation is one of the significant tools for the success of development projects like road projects. At this level the reasons for public consultation include: To disseminate information among the community and stakeholders. To recognize the attitude of the community towards the project. 4

16 Consultancy Services for Detailed Engineering Design and Tender Document Preparation of To understand the local community s practical experience in similar or other projects. To anticipate possible solutions for the problems related to the project. To get their suggestion on loss assets With this reasoning consultation was made with community representatives, project affected people, local administrative bodies and key persons. The most important issues, for which the discussions focus, were the damages to be caused and issues of: Receiving fair compensation Minimizing land acquisition Ensuring adequate land allocation and livelihood restoration Community Representatives Consultation Consultation with community representatives was carried out through group discussion in different areas during the field visit. On the group discussion representatives were briefed about the need for consultation, about the proposed project and the different alternatives. (See photo in Annex ) Consultation with Local Administration At Woreda and Kebele level administrators or their representatives were consulted and informed about the proposed project. Finally, the data and documentation collected were reviewed and analyzed, primarily to: Describe the relevant policies and legislative framework within which the socio-environmental assessment is undertaken. Describe the existing setting of the road environment in terms of its physical and biological conditions. In the description of the baseline condition, more attention was given for the road corridors of the proposed alternatives. Identify, analyze and evaluate the potential impacts of the proposed alternative D. Analysis The data and documents collected were reviewed, analyzed and utilized in this document to indicate general existing Socio- economic condition, positive and negative impacts of the road project and feasible mitigation measures were proposed. 5

17 PART III: PROJECT DESCRIPTION AND RATIONALE FOR RAP The Project road is located in the Southern National Regional State and Gambela National Regional State. The Project starts at Mizan Teferi town on Mizan Jima Road. Mizan is located 875km from Addis Ababa. At present there is only one alternative to reach Mizan, through Jima-Mizan Road. The road with a distance of 91.6 km passes through several towns and villages of Aman, Guraferda, Kuja and Dima. Mizan-Dima Road upgrading project is a project intended to improve the road network of the country and the community along the road. It is found from the discussion made with the local officials and community that it incorporates the felt need of the community existing on different towns along the road, of their social, commercial and public transportation interest which otherwise hinder the development effort of the towns and rural community. Further more the road benefit the neighboring country of South Sudan with creating a link to the community living around. The total length of the project road is about 91.6 km. The majority of the road length falls in the Southern National Regional State while the small part is in Gambela National Regional State. The socio-economic features along the proposed road alignment are briefly described below based on information obtained through field surveys, consultations with key informants and review of the previous study. The road has a wider geographical area in which the road could lead to new or expanded interaction in economic activity and associated transport movement as a result of changes in the rode network. This area effectively encompasses most of the Western Oromiya Region and Eastern Southern Regional National States. In addition, the road has regional influence in terms of connecting Debub Bench zone from West and South West parts of the Gambela and Oromiya from to Mizan towns. The road also forms part of the long distance links to Addis Ababa Southern Regional National State through Debub Bench zone. It is seen as one of Regional important road links. Though the recent maintenance has improved the road quality on certain sections, the traffic volume is increasing, causing constraints for agricultural products movement and reducing the level of service offered by the road. The right of Way width is taken 30 in rural areas while meters width in towns to reduce the impacts in towns. The Right of way further reduces in very densely town area as appropriate to avoid high damages on houses. The land acquisition and resettlement impacts of the projects are not involve resettlement plan mainly for the following reasons: The project is upgrading the existing lines, Mizan Dima constructed in the 1980s, to involving affection of land acquisition for the working space and to widen the narrow road spaces in the towns. This resettlement plan is required since the project affects 73 house holds 6

18 which means at least 365 peoples. Will lose their homes. But not fully relocated People are not required to move to different and new places because firstly in rural areas there are ample spaces within their locality so that they can only move the houses, location to few meters far from the previous residences. Secondly permanently affected houses are not located in one area, but spread across the 91.6 km. Moreover, Impacts on residences will not require livelihood restoration plan since they have access to additional land in their existing compound. The road width in towns is found on average meters, and thus will not involve significant damage, which require resettlement. The opinion received from the different woreda administrators and their representative, gives due consideration. As per their opinion, the envisaged road project will affect houses in the town and both houses and farmlands in the rural. However it is suggested that there is a Federal and Regional compensation draft law which should be considered by them regarding involuntary displacement and damage due to the development activity. It is their opinion that any displacement will be handled as per the existing law and practice. Apart from this there is an experience of involving the project affected persons for consultation in the time of compensation by their own representatives. In all the woredas they confirm that, whenever the damage on houses in towns occurs there is land within the towns under the control of urban administration council which is planned to distribute for new house construction applicant, which could be shared to these incoming project affected people. For this a confirmation letter from the wereda is attached in the Annex 6. Regarding the rural farm land impacts, people could get farm land, since there are ample uncultivated lands alongside the proposed road. Thus, the rural project affected persons could get the land for construction of houses and farm from the uncultivated land which is under the rural kebele administration. They also get ownership certificate, land titling. The different stakeholders including the affected people consulted recommended that the road upgrading project thought it affects residential houses and farm land they have the opinion of high benefit they derived due to the construction of the road expecting fair compensation for their damaged assets. Although land acquisition and resettlement impacts of the projects will occur, there is no scarcity of land as found in the high land parts of the country. However the policies measures and procedures as described in the World Bank policy will be applied to all impacts. The key effects of the project are: Agricultural Land acquisitions; Grazing Land acquisitions; Affected houses and fences due to damage during construction work space. 7

19 The projects are not likely to require a full resettlement plan as no displaced people except relocation within their current residence location. However, adequate compensation measures will thus be essential. Above all, with the expected development of the local economy in the project area and neighboring South Sudan, the increase in traffic volumes there will be a continuing need to improve the road. In view of the relatively high traffic volumes upgrading of the road is important. 8

20 PART IV: LEGAL AND INSTITUTIONAL This RAP will apply the laws, legislation, regulations, and local rules governing the use of land and other assets in Ethiopia. This legal and institutional framework is presented in seven sections: (i) Political economy and governance in Ethiopia; (ii) Legislation and Regulation land rights, as defined by Ethiopian law and customary practice; (iii) Acquisition and valuation of land and other assets, including regulations over the buying and selling of these assets; (iv) Human rights, compensation and involuntary resettlement, in particular, the accepted norms influencing peoples basic rights to livelihood and social services; (v) Dispute resolution and grievance mechanisms, specifically the legal and institutional arrangements for filing grievances or complaints and how those grievances are addressed through formal and informal systems of dispute resolution; and (vi) Comparison with World Bank OP4.12, using equivalence and acceptability standards;(vii) Institutional and Administrative framework. 4.1 POLITICAL ECONOMY AND GOVERNANCE IN ETHIOPIA Economic policy Ethiopia embarked on a series of economic reforms in the early 1990's, introducing more liberal economic policies. Amongst the core economic policies adopted were increased privatization instead of the public ownership of economic establishments, the phased liberalization of exchange rates deregulation of prices and foreign trade. This has resulted in increased economic growth and stability in the economy, despite the recurrent drought impacting on agriculture performance, the main stream of the economy. The country's economic policy, was refined in 2002, with formulation of a poverty reduction focused strategy, to incorporate all development programs, including agriculture, education, health, and the road sector development Program. This strategy is focused toward the reduction of poverty in the short term, with the goal of achieving sustained socio-economic development in long term. Central to the national economic policy is the agriculture Development Led Industrialization (ADLI), with the focal strategy of improved productivity in agriculture with the objective of increasing output. The stated objective is that improved performance in agriculture, through a variety of program and strategies, creates growth and development in other industries. The Sustainable Development and Poverty Reduction Strategy (SDPRS), was developed by the government in consultation with major donors and is being implemented, with the backing of development partner. As a result of this, Ethiopia received some debt forgiveness under the highly Indebted Poor Countries (HIPC) conditional ties. 9

21 At present the government has released its medium term strategic framework for the next five-year period. It is known as Growth and Transformation Plan (GTP) 2010/ /15. The Growth and Transformation Plan has the major objectives : maintain at least an average real GDP growth rate of 11 per cent and meet the Millennium Development goals; expand and ensure the qualities of education and health services thereby achieving the MDGs in the social sectors ; establish favorable conditions for sustainable state building through the creation of stable democratic and developmental state and ensure growth sustainability by realizing all the above objectives within stable macroeconomic framework The National Population Policy The national population policy, which was issued in 1993, aims to reduce population growth by reducing the number of children per women from 7.5 to 4.0 by The policy also recognizes that if economic and social development is to be sustainable it must be compatible with the limits of the existing natural resource base Road Sector Development program The Government of Ethiopia formulated a Road Sector Development Program (RSDP), which aimed at contributing to the country's economic development. (World Bank: December 1997). The core focal areas of the program include the following:- Improving trunk and link regional rural road access and utilization to meet agricultural and other economic development needs; Building up the institutional capacity in both the public and private sectors for sustainable road development and maintenance; and Providing economic opportunity for the rural poor through increased employment in rural road works and development of appropriate and affordable means of transport and services. The Road Sector Development Program (RSDP) was formulated as a 10-year program ( ). The first five year of the program (RSDPI), covering the period 1997 to 2007, was officially launched in September 1997, and was completed in June 2002, with recorded physical and financial performance of 88 percent and 77 percent respectively. (ERA: November 2006). According to the Road sector Development Performance Report, the first phase of the Road Sector Development Program (1997 to 2002) focused on the restoration of the road network to acceptable condition. The second phase ( ) aimed at consolidating the achievements of the first phase, while also promoting the expansion, enhancing the connectivity of the network, and hence providing a sustainable road system to rural parts of the country. Up to end of June 2006, a total of 51,437 Kms. of rural roads were constructed upgraded/rehabilitated and maintained, of which 8495 kms were federal roads and 9531 kms newly constructed/maintained, regional roads, and over kms were community and newly constructed and maintained. 10

22 4.1.4 Regional Policy The regional policies of the Southern National Regional State and Gambele National Regional State are based on the national policy framework considering the regional peculiarities of resources and constraints. The regional policies are not different from the national and emanate from the national framework and targets but take into account the specific regional conditions, potentials and capabilities. 4.2 LEGISLATION AND REGULATION The Federal Constitution The Constitution of the Federal Democratic Republic of Ethiopia, which entered into force as of August 21st 1995, forms the fundamental basis for enactment of specific legislative instruments governing environmental matters at National level. Articles 43, 44 and 92 of the Constitution specifically deal with the right to development, environmental rights and environmental objectives respectively. In a section that deals with the right to development: Article 43 (1) gives broad right to the peoples of Ethiopia to improved living standards and to sustainable development; Article 43 (2) acknowledges the rights of the people to be consulted with respect to policies and projects affecting their community; Article 43 (3) requires all international agreements and relations by the State to protect and ensure Ethiopia s right to sustainable development. In a section that deals with environmental rights, Article 44 guarantees the right to a clean and healthy environment. In a section that deals with environmental objectives Article 92 sets out the Federal policy principles and significant environmental objectives. More specifically Article 92: affirms the commitment of the Government to endeavour to ensure that all Ethiopians live in a clean and healthy environment; warns that the design and implementation of development programs and projects do not damage or destroy the environment; guarantees the right of the people to full consultation and the expression of views in the planning and implementation of environmental policies on projects that affect them; and imposes the duty on Government and citizens to protect the environment. 11

23 In the context of land ownership and holding right: Article 40 (3) vests the right to ownership of rural and urban land, as well as of all natural resources, in the government and in the peoples of Ethiopia; recognizes land as a common property of the Nations, Nationalities of, and peoples of Ethiopia and prohibits sale or any other exchange of land; Article 40 (4) guarantees the right of farmers to obtain land without payment and the protection against eviction from their possession; and Article 40 (5) guarantees the right of pastoralists to free land for grazing and cultivation as well as the right not to be displaced from their own lands. In recognition of the value of human input on land Article 40 (7) states that Every Ethiopian shall have the full right to the immovable property he builds and to the permanent improvements he brings about on the land by his labor or capital. This right shall include the right to alienate, to bequeath and where the right to use expires, to remove his property, transfers his title, or claim compensation for it. In recognition of the right to acquire property for the purpose of overriding national interest Article 40 (7) empowers the Government to expropriate private property for public purposes subject to payment in advance of compensation commensurate to the value of the property. In a section that deals with economic, social and cultural rights, Article 41 (9) sets out the State responsibilities to protect and preserve historical and cultural legacies: The Research and Conservation of Cultural Heritage Proclamation No. 209/2000 of Ethiopia defines cultural heritage broadly as anything tangible or intangible which is the product of creativity and labor of man in the pre-history and history times, that describes and witnesses to the evolution of nature and which has a major value in its scientific, historical, cultural, artistic and handcraft content. Prior approval of the Authority for Research and Conservation of Cultural Heritage is required to remove from its original site of an immovable cultural heritage (Art. 21/1). Whenever registered, movable cultural heritage is encountered during the execution of the project it is possible to remove such property by notifying the Authority in advance (Art. 21/2). Any person who destroys or damages cultural heritage intentionally shall be punished with imprisonment not less than 10 years and not exceeding 20 years (Art. 45/2/) Legislation on Expropriation of Land & Compensation The Federal Legislation on Expropriation of Land for Public Purposes & Compensation (Proclamation, No. 455/2005) repealed the outdated provisions of the Ethiopian Civil Code of 1960 regulating land acquisition and compensation for the purpose of 12

24 public projects. This new legislation established detailed procedures and setting time limits within which land could be acquired after request is received from the proponent, principles for assessment of compensation for properties on the land, and for displacement compensation. It also empowered the Woreda administration to establish valuation committees to value private properties. In the case of publicowned infrastructures to be removed from the right-of-way, the owners of the structures would assess the value of the properties to be removed. Additionally the legislation provided for appeals from valuation decisions but such action would not delay transfer of possession of land to the proponent or contractor appointed by the proponent. The Proclamation has removed the barriers for planned land acquisition, substantially raised the amount of compensation payable to expropriated owners of properties and displaced people. In addition to financial compensation in an amount sufficient to reinstate the displaced people to the economic position prior to displacement the relevant Regional administration is required to give another land to any person who lost his land in favor of public project. Assessments of compensation do not include the value of land itself, because land is a public property not subject to sale in Ethiopia. The responsibility of a proponent of a proposed project under Ethiopian law does not extend beyond the payment of compensation for properties and displacement. In other words the displaced people need to seek resettlement options that are stipulated with the framework of the land administration systems of the relevant rural or urban land administration. According to this proclamation, (Proclamation, No. 455/2005), part two, article 3, number 1 it states that, A Wereda or urban administration shall, upon payment in advance payment of compensation in accordance with this proclamation, have the power to expropriate rural or urban landholdings for public purpose where it believes that it should be used for a better development project to be carried out by public entities, private investors, cooperative societies or other organs, or where such expropriation has been decided by appropriate higher regional or federal government organs for the same purpose A land holder whose land has been expropriated for public use by the concerned government authorities is entitled for compensation. Part two; Article 7, No.1 of the proclamation states that: A land holder whose holding has been expropriated shall be entitled to payment for compensation for his property situated on the land for permanent improvements he made to such land. In May 18 th 2007 there has been issued regulation No. 135/20087 for the application of 455/205 with the purpose of paying compensation and to assist displaced persons to restore their livelihood. The regulation states the type of Formula to be used in valuing compensation for properties expropriated for public interest. 13

25 Proclamation on Rural Land Administration and Land Use This Proclamation, Proc. No. 456/2005, came into effect in July The objective of the Proclamation is to conserve and develop natural resources in rural areas by promoting sustainable land use practices. In order to encourage farmers and pastoralists to implement measures to guard against soil erosion, the Proclamation introduces a Rural Land Holding Certificate, which provides a level of security of tenure. The MoARD is charged with executing the Proclamation by providing support and coordinating the activities of the regional authorities. Regional governments have an obligation to establish a competent organization to implement the rural land administration and land use law. According the Proclamation where land, which has already been registered, is to be acquired for public works, compensation commensurate with the improvements made to the land shall be paid to the land use holder or substitute land shall be offered. The Proclamation imposes restrictions on the use of various categories of land, for example wetland areas, steep slopes, land dissected by gullies, etc The Ethiopian Roads Authority s Resettlement Policy The resettlement / rehabilitation policy framework was issued in February 2002 and has been implemented since then. The overall objective of the policy framework is to clarify the principles of social impact operations. The operational objective of the framework is to provide guidelines to stakeholders participating in the rehabilitation/resettlement operations in order to ensure that project-affected-persons (PAPs) will not be impoverished by the adverse social impact of the projects. The basic principles imply that PAPs should be: Compensated for loss of assets at replacement cost. Given the opportunities to share project benefit. Be assisted in case of relocation or resettlement. The focus should be on restoring the income earning capacity of the projectaffected-persons. The aim should be to improve or at least sustain living conditions prior to project operation or resettlement. The legal framework in general deals with operational procedures, legal framework for expropriation and compensation, institutional framework, socio-economic background of PAPs, social impacts of the road rehabilitation program, valuation procedures, consultation and participation procedure, and monitoring and evaluation arrangements. 14

26 In light of the above national legal framework, The Federal Democratic Republic of Ethiopia committed itself to abide the involuntary resettlement policy of the international financial institution law like The World Bank and other institutions. The national resettlement law is related to World Bank Operational Directive (OP) 4.12 on involuntary resettlement and its operational policy. The Federal Government of Ethiopia is complying with the requirements of World Bank s operational directives (OP) 4.12 in the implementation of this and other similar road project THE WORLD BANK, ADB and other Donors Resettlement Policy The Bank Operational Directive (OP) 4.12 This directive describes Bank policy and procedures on involuntary resettlement, as well as the conditions that borrowers are expected to meet in operation involving involuntary resettlement Planning and financing resettlement components or free-standing projects are an integral part of preparation for projects that cause involuntary displacement. Any operation that involves land acquisition or is a category A or B project resettlement requirements early in the project cycle (para,20) Development projects that displaced people involuntarily generally give rise to serve economic, social, and environmental problems: production systems are dismantled; productive assets and income sources are lost; people are relocated to environments where their productive skills may be less applicable and the competition for recourses greater; community structures and social networks are weakened; kin groups are dispersed; and cultural identity, traditional authority,and the potential for mutual help are diminished. Involuntary resettlement may cause severe long-term hardship, impoverishment, and environmental damage unless appropriate measures are carefully planned and carried out. The World Bank s requirements regarding involuntary resettlement are detailed in Operational Directive The directive outlines the following principles: Acquisition of land and other assets, and resettlement of people will be minimized as much as possible by identifying possible alternative project designs, and appropriate social, economic, operational and engineering solutions that have the least impact on populations in the Project area. The populations affected by the Project are defined as those who may stand to lose, as a consequence of the Project, all or part of their physical and non-physical assets, including homes, homesteads, productive lands, commercial properties, tenancy, income-earning 15