Land Acquisition and Resettlement Plan Corrective Action Plan

Land Acquisition and Resettlement Plan Corrective Action Plan Faizabad Baharak Road Project Prepared in February 2018 Grant 0261/0262-AFG: Transport Network Development Investment Program Tranche 1 Prepared by Ministry of Public Works, Islamic Republic of Afghanistan for Asian Development Bank (ADB) This Corrective Action Plan 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.

CURRENCY EQUIVALENTS Currency Unit Afghani (AFN) AF1.00 = 0.01428$ $1.00 = 70 AFN ABBREVIATIONS AND ACRONYMS ADB CAP DP kg km LAR LARF LARP m MFF MPW NGO PMO ROW TNDIP Asian Development Bank corrective action plan displaced person kilogram kilometer land acquisition and resettlement land acquisition & resettlement framework land acquisition & resettlement plan meter multi tranche financing facility Ministry of Public Works non-government organization Project Management Office right of way Transport Network Development Investment Program 1 P a g e

Table of Contents ABBREVIATIONS AND ACRONYMS... 1 DEFINITION OF TERMS... 3 A. Introduction... 6 B. Remedial action required: compensation for unlisted impact... 6 C. Detailed description and scope of unaddressed impact... 7 D. Corrective action approach... 8 E. Consultation and information disclosure...10 F. Cost of corrective action...10 G. Schedule for compliance...12 H. Certification of compliance...12 I. Attachment 1...13 J. Attachment 2...14 K. Attachment 3...15 2 P a g e

DEFINITION OF TERMS Affected persons (APs) means all of the people affected by the project through land acquisition, relocation, or loss of incomes and include any person, household (sometimes referred to as project affected family), firms, or public or private institutions. APs therefore include; i) persons affected directly by the rightof-way acquisition, or construction work area; (ii) persons whose agricultural land or other productive assets such as trees or crops are affected; (iii) persons whose businesses are affected and who might experience loss of income due to the project impact; (iv) persons who lose work/employment as a result of project impact; and (v) people who lose access to community resources/property as a result of the project. Although this definition of affected person is at variance with that in the SPS-2009, this is how it is currently understood and used in Afghanistan, and practically it is not different from displaced person defined in the SPS-2009. Compensation means payment in cash or kind for an asset to be acquired or affected by a project at replacement cost at current market value. Cut-off-date means the date after which people will NOT be considered eligible for compensation, i.e., they are not included in the list of APs as defined by the project census. Normally, the cut-off date is the start date or the end date of the detailed measurement survey. Detailed measurement survey means the detailed inventory of losses that is completed after detailed design and marking of project boundaries on the ground. Encroachers means those who illegally extend their legal title holding on to the public land. Entitlement means the range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation, which are due to business restoration due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. 3 P a g e

Inventory of losses means the pre-appraisal inventory of assets as a preliminary record of affected or lost assets. Jerib means traditional unit for measurement of land in Afghanistan. One Jerib is equivalent to 2000 square meter of land. One hectare consists of 5 jeribs. Land acquisition means the process through the eminent domain law of the country whereby a person is compelled by a public agency to alienate all or part of the land she/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation. Non-titled means those who have no recognizable rights or claims to the land that they are occupying and includes people using private or state land without permission, permit or grant, i.e., those people without legal title to land and/or structures occupied or used by them. ADB s policy explicitly states that such people cannot be denied compensation for any developments they may have made on the land that they occupy, although they are not required to be compensated for the land. Poor Based on Ministry of Rural Rehabilitation and Development study of Nationwide Risk and Poverty Assessment of Afghanistan, the latest national poverty line for the period 2011-2012, has been determined as AFN 1,710 per person per month. Poor includes, amongst other factors, those falling below this line. Replacement cost means the method of valuing assets to replace the loss at current market value, or its nearest equivalent, and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged. Apart from the fair market value, replacement cost includes transaction costs, interest accrued (if any), transitional and restoration costs, and other applicable payments, if any. 4 P a g e

Sharecropper means the same as tenant cultivator or tenant farmer, and is a person who cultivates land they do not own for an agreed proportion of the crop or harvest. Significant impact means 200 persons or more will experience major impacts, which is defined as; (i) being physically displaced from housing, or (ii) losing ten per cent or more of their productive assets (income generating). Squatter one who illegally occupies public land. Vulnerable means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes; (i) female-headed households with dependents; (ii) disabled household heads; (iii) poor households (within the meaning given previously); (iv) landless or those without title to land; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with landholdings of five Jeribs or less). 5 P a g e

A. Introduction 1. This Corrective Action Plan (CAP) has been prepared by the Program Management Office (PMO) of the Ministry of Public Works to remedy involuntary resettlement impact that was only partially recorded and addressed in the post final design June 2015 Land Acquisition and Resettlement Plan (LARP) of the Faizabad-Bahrak Road Project 1. This CAP, prepared in accordance with ADB s SPS (2009) requirements, is to be read in conjunction with the approved June 2015 LARP- it s census of affected persons, socio-economic survey, inventory of lost land assets, basic principles and policies applicable for compensation and commensurate resettlement allowances, grievance redress mechanism, and institutional arrangements. This CAP is conceived as and forms an attachment of that LARP. 2. The Faizabad-Bahrak road project is financed by the Asian Development Bank (ADB) under the Tranche 1 of the Multitranche Financing Facility (MFF) for Transport Network Development Investment Program (TNDIP). The road passes through the Faizabad, Arghanchkhwa,and Beharak Districts of Badakshan province of Afghanistan. The major settlements located along the Project road are Mushkaran, Torgani, Shorabak, Khanaqa, Somdara, Khairabad, Payanshahir, Kochahisar, and Aitifaq. 3. The Project road is designed according to the two-lane major road standard. The works consist of construction of the existing track to a two-lane paved (bituminous) road of 7.0 m width 1.0 m paved shoulder and 1.0 m granular shoulder each side with overall width of 11 m as per the Interim Road and Highway Standards of MPW. In addition, the works also involve construction and rehabilitation of bridges, and culverts to two-lane standards. The Executing Agency (i.e. Ministry of Public Works, MPW) has already prepared and updated the resettlement plan for the Project as per ADB s Safeguards Policy Statement of 2009 (SPS 2009), Afghanistan s Land Acquisition Law and the Land Acquisition and Resettlement Framework for TNDIP. This LARP 2015 assessed the extent of impact caused by land acquisition to accommodate a total of 11 meter general highway cross section, as detailed above, and an additional 3.5 meters on both sides as safety zones. The LARP spelled out the compensation and rehabilitation of the affected households (AHs) and affected persons (APs). This Corrective Action Plan is prepared to cover all those affected persons (APs) who have been absent since the start of the LARP preparations. These affected households (AHs) are now identified as the eligible to be compensated through this CAP. B. Remedial action required: compensation for unlisted impact 4. This corrective action plan is prepared to remedy the left-out impact of land and non-land assets; land, structures and trees of 14 DPs some of which were initially miss-enumerated or left out of the inventory, from the post- final -design revision of the project LARP. The impact being addressed here is by no means unanticipated. While their assets remained wrongly recorded, these 14 DPs and the details of land/non-land owned by them and impacted by the project road, are included in the census of DPs, inventory of lost land assets and the budget of the approved LARP. 1 This report was developed within the framework of the ADB funded TRANSPORT NETWORK DEVELOPMENT INVESTMENT PROGRAM, Tranche 2 -Capacity Building for MPW 6 P a g e

5. The non-listing of these assets during the inventory of assets process of LARP preparation for these 14 DPs, for which remedial action within the frame work of this CAP is now required, was occasioned by the refusal of these DP s to allow LAR survey teams entry onto their properties after the initial land survey. These left out people were notified through a public call and were informed to claims their losses accordingly. Almost 100 applicants were received to the Directorate of Public Works of Badakhshan Province. All the 100 claimed application were investigated by the order of Badakhshan Governor Office through the assigned committee. Following the investigation, only 14 applicants were identified as the APs of the project that are left out from the compensation. These 14 DPs were issued the survey tickets and were recommended the procedure to declare the ownership of the land. 6. This is what finally prompted these eligible 14 DPs to submit their claim to MPW for the entitled compensation of trees and structures on their impacted land, and allow the survey team to carry out detailed measurements, and compile an inventory of lost land/non-land assets for inclusion in this CAP. C. Detailed description and scope of unaddressed impact 7. The unaddressed impact affecting 14 DPs are located along the whole alignment of the Faizabad-Baharak Road Project, for whom this CAP is prepared concerns loss of 2,845 m 2 of (1210 m 2 Agricultural and Irrigate and 1635 m 2 of residential and commercial) land, 149.45 m 2 building structure and 94 trees, both fruit and timber as detailed in the paragraphs and tables below. 8. Five out of 14 DPs are the categories that lost their business, relocated and somehow vulnerable to do the project, so their compensation is also calculated in this CAP. The impact on 19 of the DPs households comprising approximately 54 people is not significant. However, the impact on 5 DPs household comprising 30 people is severe because it will lose its entire dwelling structure. Even though this household has land on both sides of the ROW to which it will relocate, these DPs is entitled to a relocation allowance which has been registered and paid within the project LARP. Loss of structure 9. There are total of 4 impacted structures that concern this CAP. Three dwelling structures (two with boundary walls) and one wall. The detailed of the structure loss is given in table 1.1 below. Table 1.1: Details of Affected Structures Type of Structure/ Material/Use and Occupancy Houses/Shop (owner occupied for dwelling) Number of Structures Total Affected Area (m 2 ) Mud/Brick/Wood 3 129.45 Wall Sub-total Dwellings 3 129.45 7 P a g e

Loss of trees Land Acquisition and Resettlement Plan Corrective Action Plan, Type of Structure/ Material/Use and Occupancy Number of Structures Total Affected Area (m 2 ) Concrete 1 20.00 m 2 =square meter; Sub-total Commercial 1 20.00 Total Impacted Structures 4 149.45 10. An assorted mix of 94 trees belonging to 4 DPs out of the 14 subject DPs are impacted by the new alignment of the road. These include 19 fruit and 75 timber trees as detailed in table 1.2. Table 1.2: Details of Affected Trees by Number and Type Type of Trees Timber Trees 75 Fruit Trees 19 Total Trees 94 Number of Trees Loss of land 11. The total public land lost in this CAP is, 2,845 m 2 of (1210 m 2 Agricultural and Irrigate and 1635 m 2 of residential and commercial) land. The land belonging to 11 DPs out of the 14 subject DPs, had been absent for the earlier compensation. Five of the DPs lost their Agricultural irrigated land while the rest 6 DPs lost their residential and commercial land. The detail of the lost land is given the table 1.3. Table 1.3: Details of Affected Land by Number and Type Type of Trees Area (m 2 ) Agricultural Irrigated 1,210 Residential/Commercial 1,635 Total Area 2,845 D. Corrective action approach 12. The approach applied to remedy the unaddressed aspects of LAR impact on the 14 subject DPs, along the road alignment, is based on the entitlement matrix of the approved project LARP, the TNDIP LARF, Afghanistan law and DP concerns. ADB s SPS (2009) requires that a CAP provide the appropriate corrective actions for each area of concern, including costs and schedules. The primary areas of concern in the present CAP, as explained in section 2 above, relate to compensation for loss of land, building structures and compensation for loss of trees 8 P a g e

both timber and fruit. The entitlements and valuation methodology for these areas of concern as provided in the project LARP. Entitlement and valuation for structures 13. The entitlement matrix of the TNDIP LARF specifies that owners of residential/commercial structures (including informal settlers) will receive cash compensation for affected structure and other fixed assets at replacement cost of the structure, free of depreciation, taxes/fees and salvaged materials. In case of partial impacts, full cash assistance to restore the remaining structure will be provided. The affected persons will have the right to salvage material from the demolished structures. 14. Structure loss valuation was done based on the replacement cost principle, free of depreciation. Replacement costs are calculated in consultation with the local governments and provincial MPW engineers. The replacement costs are arrived at by assessment of market value for replacement of structures and include costs of material, labor and transport. Unit rates for compensation of structures by type of construction payable to the DPs are given in Table 2.1. Table 2.1: Compensation for Structure by Type of Construction Item Type of construction Unit Rate (AFN) 1 Houses/Shops (Mud, brick, wood) 2 3 Houses (Concrete) Wall (mud) m 2 2,000 m 2 m 2 4,000 1,000 AFN=Afghanistan currency; m 2 =square meter Entitlement and valuation for trees 15. The entitlement matrix of the TNDIP LARF specifies that compensation for trees on affected land will be paid to owners of trees (including informal settlers) for fruit bearing trees at the value of 1 harvest multiplied by the number of years needed to re grow a tree at the same productive level of the tree lost. Non fruit bearing/timber trees will be valued based on the market value of their dry wood volume. The compensation of the tree will be free of deduction for the value of the wood left to the AH. 16. Compensation for fruit trees is calculated for each main tree type at annual average production multiplied with the value/kg at market prices and number of years needed to re-grow the tree to the same productive level. See Table 2.2. below. S.No. Tree Average Annual Table 2.2: Compensation of Fruit Trees Rate, AFN/kg (Market prices) Years to regrow to productive level Rate per tree (AFN) 9 P a g e

Yield, Kg 1 Berry 65 45 2 5,850 2 Almond 35 90 2 6,300 3 Apricot 25 60 4 6,000 4 Peach 20 80 2 5.700 5 Grapes 20 50 3 5,400 AFN=Afghanistan Currency; kg=kilogram; no. =number. 17. Based on these calculations the compensation rates for fruit trees vary between AFN 5,400 and 6,300. A uniform compensation rate of AFN.6, 000 was considered as adequate and fair for all fruit trees in consultation with the affected persons. 18. Compensation for timber trees is calculated based on the cost of reproducing the tree to the level of growth at which it is cut. The general height of timber trees is estimated to be 10 m, girth at 0.5 m and produce at about 1,000 kg of firewood. With the cost of firewood estimated by the affected persons at AFN4 per kg the compensation for timber trees was agreed as adequate and fair at AFN. 4,000 per tree. The compensation of the tree will be free of deduction for the value of the wood left to the AH. E. Consultation and information disclosure 19. The subject DPs have been an integral part of the overall consultation and information disclosure process of the project as is documented in the LARP. Over time they unfortunately became unreceptive to any overtures for consultation or information provided by the project LAR team. A due diligence commission comprising provincial and district officials, the PMO/MPW Project Implementation Engineer posted on the site, Resident Engineer of the Project Supervision Consultants, and the LARP Implementation NGO, jointly with respective DPs visited the impacted sites and verified and measured the losses. They reiterated the entitlement matrix and the valuation methods of concerned compensation rates, while finalizing individual DP agreements and contracts. Through various field visits, PMO project management has continued its contacts and meetings with the DPs and other stakeholders and disclosure of the contents of this CAP. See Attachment 1 for a summary of the claims, participatory due-diligence and meeting dates. The CAP will also be submitted to ADB for disclosure on the web. F. Cost of corrective action 20. The costs for this CAP relates to compensation for land/non-land assets. These costs, based on the entitlements and valuation of concerned compensation rates for land and non-land assets, amounts to AFN 2,097,015.00 as detailed in Table 3.1 below. The mentioned amount is composed of two major assets; land and non-land. The non-land assets (Structure, Trees and other facilities) are of AFN 917,300, agreed between ADB and the Government, for projects under the TNDIP MFF the cost of resettlement (compensation for non-land assets and commensurate allowances) shall be met out of the funds provided by ADB under the Grant. Moreover, the cost of the land assets, which is of AFN 1,179,715 will be borne by the Government of Islamic Republic of Afghanistan, from the Ministry of Finance Special Allocated Code. The cost of this CAP will be paid under Grant funds out of available contingency amounts in the Project LARP. The detailed budget of this CAP is given in the below tables 3.1-3.2. 10 P a g e

Sr. No. A Table 3.1: Corrective Action Plan Resettlement Budget Structures/Other Facilities Item Unit Rate per Unit (AFN) Quantity Cost (In AFN) 1 Mud/brick/wood m 2 2,000 135.45 270,900.00 2 Concrete m 2 4,000 0.000 0 3 4 5 6 7 8 Wall Brick/DPC Mud Wall Vulnerability allowance Relocation allowance Business loss allowance Transitional allowance m 2 m 2 no no no no 2,000 1,000 28,000 5,000 36,000 15,600 0.000 14.000 1.000 4.000 3.000 4.000 0 14,000 28,000 20,000 108,000 62,400 Sub Total (A) 503,300.00 B Trees 1 Wood Trees ea. 4,000 75 300,000.00 Fruit Trees ea. 6,000 19 114,000.00 Sub Total (B) 414,000.00 Total Compensation (A+B) 917,300.00 Total in US Dollars (USD 1=AFN 70 13,105 AFN=Afghanistan currency; ea.=each; no.=number; Table 3.2: Corrective Action Plan Land Acquisition Budget Sr. No. A B Agricultural Land Item Unit Rate per Unit (AFN) Quantity Cost (In AFN) 1 Irrigated Land m 2 230* 1,210 247,590.00 Commercial/Residential Land 1 Residential ea. 575* 1,635 932,125.00 11 P a g e

Sr. No. Item Unit Rate per Unit (AFN) Quantity Cost (In AFN) Total Compensation (A+B) 1,179,715.00 Total in US Dollars (USD 1=70 AFN) 16,853 * The rate of irrigated land differs in 3 variations i.e. 230, 225 and 150 per m 2, so the calculated amount in the table is not based only on 230 per m 2. * The rate of residential/commercial land differs in 2 variations i.e. 575 and 550 per m 2, so the calculated amount in the table is not based only on 575 per m 2. 21.. Details of amounts payable to individual eligible DPs, based on their entitlements are provided in Attachment 2. G. Schedule for compliance 22. This CAP is expected to be reviewed and approved by ADB by 10 March 2018. DP agreements and contracts are already prepared. Payments to individual DP bank accounts can reasonably be anticipated by April 2018. Civil works in road section segments with unaddressed LAR impact mitigated by this CAP may not commence till compensation specified herein is fully paid to the DPs, and implementation of the CAP is certified as completed. H. Certification of compliance 23. The Project Manager, Faizabad-Bahatak Road Project, designated compliance officer for this CAP, will verify that all areas of concern in the CAP have been fully addressed. Implementation completion will be certified by the TNDIP PMO/MPW Program Director. 12 P a g e

I. Attachment 1 Project: Faizabad-Bahatak Road Ministry of Public Works Program Management Office Transport Network Development Investment Program (ADB) Land Acquisition and Resettlement Corrective Action Locality: Faizabad, Baharak Districts, Badakhshan Province S/N Issue/Item Situation/Due Diligence Report 1 In order to ensure that no single APs is left un-compensated, a public announcement was recommended by Ministry of Public Works. The Consultant broadcasted the call by utilizing cultural centres, Masjids and through district governors. This call made all the left out APs to submit their claims. There were 100 claims received to the Directorate of Public Works of Badakhshan. Following the procedures, the Directorate of Public Works of Badakhshan Province requested the Provincial Governor office to assign a delegate to review the entire list of the claimed people. The delegation was assigned from the all the sectorial directorates; MPW, MOUD, Municipality, MOF, Governor Office. All the 100 applications were reviewed and finally, the 14 applications were found authentic. The identified APs were recommended by the assigned delegation to the Consultant Team and were forwarded to process their documentation accordingly. The documents of the 14 APs were documented and are received to the PMO/MPW and are hereby documented in the CAP. Corrective Action Eligible Amount Entitlement Person(s) (AFN) 2,845 m 2 of 14 APs 2,097,015.00 Agricultural, residential and commercial land is lost in the road alignment. 94 trees and 149.45 m 2 of structure is demolished in the alignment of the road that had been left out from the earlier LARP. 13 P a g e

J. Attachment 2 S,No: Name F.Name 1 M. Amin Gada Mohammad 360 2 Abdul Wahid Abdul Rashid 168 20 3 Abdul Nasir M. Zahir 300 4 M. Khaliq M. Latif 390 5 Ewaz M. Ali 480 Land m 2 Trees no Structure m 2 Allowances Entitlements Irrigated Residential Timber Fruit Wall Structure Busin./Transi./Reloc./Voluner. AFN 6 Delawar Haji Abdul Wahid 6 Busin.Trans./Reloc. 7 Abdul Wahab Abdul Hakim Busin.Trans./Reloc. 8 Qurban Mohammad M. Esa 73.45 Busin.Trans./Reloc. 9 Haji Mirza Sayed Haji Mir Sayed 270 16 10 Habibullah Abdul Aziz 112 Vulnerability loss 11 Sakhi Dad M. Karim 360 3 12 Sikandar Abdul Hakim 65 14 36 Trans./Reloc. 13 Hangama Abdul Alim 20 20 14 Zukrya Gholam Hassan 320 55 207,000.00 118,640.00 69,000.00 224,250.00 276,000.00 68,600.00 56,600.00 203,500.00 156,750.00 53,200.00 72,000.00 143,975.00 51,500.00 396,000.00 Total Entitlements 2,097,015.00 14 P a g e

K. Attachment 3 The following certificates and attests that the assigned committee has discussed the valuation and reached the decision to follow the earlier rates and request the compensation on the same value. 15 P a g e