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Prepared by Environmental Health, Safety and Quality Office April 2016

DISTRIBUTION REHABILITATION AND UPGRADING PROJECT

ABBRIVATED REETLMENT ACTION PLAN (ARAP)

JIMMA TOWN

ETHIOPIAN ELECTRICPOWER (EEP)

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

SFG2992

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Ethiopian Electric Power / EEP Abbreviated Resettlement Action Plan [ARAP]

March 2016 i

TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................. I

LIST OF TABLES ...................................................................................................................................... II

ACRONYMS .............................................................................................................................................. III

EXECUTIVE SUMMARY ........................................................................................................................ IV

1. INTRODUCTION ......................................................................................................................... 1

1.1. OBJECTIVE OF THE ARAP .................................................................................................................. 2

2. KEY COMPONENTS OF THE PROJECT AND BIOPHYSICAL PROFILE ........................... 2

2.1. DESCRIPTION OF THE PROJECT ........................................................................................................... 2

2.2. PHYSICAL ENVIRONMENT .................................................................................................................. 4

2.3. BIOLOGICAL ENVIRONMENT .............................................................................................................. 5

2.4. HUMAN ENVIRONMENT ..................................................................................................................... 6

2.5. ARCHEOLOGICAL, CULTURAL HERITAGE AND RELIGIOUS SITES ....................................................... 8

2.6. INFRASTRUCTURES ............................................................................................................................ 9

3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION ........................... 9

3.1. EXPROPRIATION LAW ........................................................................................................................ 9

3.2. COMPENSATION LAW ...................................................................................................................... 10

3.3. GRIEVANCE REDRESS MECHANISM ................................................................................................. 12

3.4. EEP STRATEGY FOR EXPROPRIATION AND COMPENSATION ............................................................ 12 3.5. WORLD BANK OPERATIONAL POLICIES AND PROCEDURES FOR INVOLUNTARY RESETTLEMENT (OP

4.12 AND BP 4.12) ......................................................................................................................................... 13

3.6. COMPARISONS OF THE NATIONAL POLICES AND THE WORLD BANK OP 4.12 .................................. 14

4. CENSUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE .............................. 17

4.1. SUMMARY OF PAPS ASSET INVENTORY .......................................................................................... 17

4.2. DETAILS OF THE IMPACTS CAUSED BY DISPLACEMENT ................................................................... 17

4.2.1. Impact on Property ......................................................................................................................... 17

4.2.2. Socio-economic Characteristics of Families..................................................................................... 19

5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS ...................................... 20

5.1. ELIGIBILITY FOR ENTITLEMENT ....................................................................................................... 20

5.2. ELIGIBILITY CRITERIA ..................................................................................................................... 20

5.3. ENTITLEMENT MATRIX .................................................................................................................... 20

5.4. VALUATION AND COMPENSATION FOR LOSS AND RESETTLEMENT MEASURES ............................... 26

5.5. CUT-OFF DATE FOR DETERMINING ELIGIBILITY .............................................................................. 28

6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION ................................. 28

6.1. PUBLIC CONSULTATION WITH AFFECTED COMMUNITIES, CITY AND KEBELE ADMINISTRATION ..... 28

7. PROPOSED ASSISTANCE FOR PAPS ..................................................................................... 31

8. INSTITUTIONAL RESPONSIBILITY ...................................................................................... 31

9. SOURCE OF BUDGET AND COST ESTIMATE ..................................................................... 32

9.1. SOURCE OF BUDGET ........................................................................................................................ 32

9.2. COMPENSATION COST ESTIMATE OF SHOPS TO BE RELOCATED ...................................................... 33 9.3. COMPENSATION COST ESTIMATE OF EUCALYPTUS TREES AND BISANA (CROTONMACROSTACHYUS)

34

9.4. COMPENSATION COST BREAKDOWN FOR AFFECTED ASSETS .......................................................... 34

10. RESETTLEMENT SCHEDULE ................................................................................................ 35

11. MONITORING/FOLLOW UP ACTIVITIES ............................................................................ 35

12. EVALUATION ............................................................................................................................ 36

ANNEX I: MINUTES OF MEETING .................................................................................................... 37

ANNEX II: PHOTOS ................................................................................................................................ 43

ANNEX III: CONTACTED PERSONS ................................................................................................... 44


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LIST OF TABLES

Table 1-1Consolidated Medium Volt Works in Jimma Town. ............................................... 3

Table 2-1Dominant manufacturing enterprises in Jimma town .............................................. 7

Table 3-1 Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps ............................. 15

Table 4-1Affected Shops ....................................................................................................... 18

Table 4-2Affected Eucalyptus Trees ..................................................................................... 19

Table 4-3Affected Bisana (Crotonmacrostachyus) ............................................................... 19

Table 4-4Socio-economic Characteristics of Families .......................................................... 19

Table 4-5 Entitlement Matrix ................................................................................................ 22

Table 9-1Compensation Cost Estimate of Shops .................................................................. 33

Table 9-2Compensation Cost Estimate of Affected Eucalyptus Trees ................................. 34 Table 9-3Compensation Cost Breakdown for Affected Assets ............................................. 34

Table 10-1Resettlement Schedule ......................................................................................... 35


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ACRONYMS

ARAP Abbreviated Resettlement Action Plan

CIS Corrugated Iron Sheets

EHS&Q Environment, Health, Safety and Quality

Eth.Birr Ethiopian Local Currency

EEP Ethiopian Electric Power

EEU Ethiopian Electric Utility

EMP Environmental Monitoring Plan

ESMP Environmental and Social Management Plan

EPE Environmental Policy of Ethiopia

FDRE Federal Republic of Ethiop

Ha Hectare

MEFCC Ministry of Environment, Forest and Climate Change

MV Medium Voltage

LV Low Voltage

Km Kilo Meter

KV Kilo Volt

KW Kilo watt

MoA Ministry of Agriculture

m² Meter square

masl Meter Above Sea Level

OD Operational Directive

OHL Overhead Line

OP Operational Policy of the World Bank

PAPs Project Affected Persons

PIU Project Implementation Unit

RIC Resettlement Implementation Committee

ROW Right of Way

RTU Remote Terminal Unit

USD United States Dollar

WB World Bank


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EXECUTIVE SUMMARY

This Abbreviated Resettlement Action Plan (ARAP) is prepared for Distribution

Rehabilitation and upgrading project for Jimma City. The ARAP contains established social

inventory of households that are likely to be affected by the distribution rehabilitation and

upgrading construction activities and a proposal to mitigate adverse social impacts

associated with clearance of the Right of Way (ROW) of the sub-project and its subsequent

operation.

From February 25 to March 8, 2016, a team of Sociologists and Environmentalists of EEP

has conducted a Socio-economic survey and asset inventory of the sub-project.

The main objective of the Distribution Rehabilitation and Upgrading Project is to

rehabilitate, expand and upgrade the distribution network of the city of Jimma to ensure safe

system operation and enable connection of new customers.

The main activities of the Distribution Rehabilitation and Upgrading works include:

Concrete pole foundation civil works and pole erection;

Line stringing;

Laying underground 15 kV cable;

Switching Station erection;

Transformers and Compact substation installation;

Replacement bare low voltage conductors with insulated conductors (area

bundled conductors);

Replacement of existing medium voltage conductors with insulated wire.

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including

the Operational Policy 4.12, Involuntary Resettlement in respect to minimizing impacts,

consulting those likely to be affected and planning to assist those to be displaced in

restoring their livelihood. The aim is to ensure that those who will be affected by the project

are adequately compensated for their losses and/or that their incomes are restored or

improved in compliance with the policy. EEP carried out requisite studies to prepare the

valuation of properties and made plans for implementation and monitoring of the project

activities, to ensure project’s compliance with the Ethiopia’s land regulation and World

Bank’s social Safeguards, Policies particularly of the Involuntary Resettlement.


March 2016 v

The Federal Democratic Republic of Ethiopia by signing the credit agreements for the

Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed

itself to abide by the World Bank Policy on involuntary resettlement. Thus, the legal

framework of the Project is based on the Constitution of FDRE as transcended into EEP’s

procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable

resettlement strategy, offering adequate compensation and incentives for loss of land and

other sources of livelihood (e.g., loss of income, crop, trees, housing and other structures)

and for investments made on land by PAP’s in accordance with the law.

Grievances are first preferred to be settled amicably whenever possible. That is, positive

discussions are made to convince the affected PAP in the presence of elders, local

administration (municipalities, Woreda and Kebele administration) representatives or any

influential person/s in the locality.

To achieve the social mitigation goal, EEP will allocate a budget for compensation payment

expected during project implementation. EEP in consultation with Woreda administrations

for rural areas and with municipalities for the town sections shall establish property

valuation committees as per Proclamation No. 455/2005, article 10, and number 1-3. To

implement compensation payments for the PAPs, projects may initiate the establishment of

more than one property valuation committee for each Woreda. The compensation estimate

and amount is and will be calculated by EEP Project Office and EHS&Q Social and

Environmental Experts in concert with the property valuation committees. The payment is

and will be effected by the Project office.

The ARAP survey revealed that, totally 10 shops will be affected by the project in two

different locations. 4 of the affected shops are found in Jiren Kebele around Commercial

Bank, Jiren Branch and 6 in Boche Bore Kebele around Nur Mosque. All shops are covered

with corrugated iron sheets /CIS/.

The socio-economic survey revealed that all of the shops will be relocated outside the five

meter safety corridor in the project sites. All of the affected shops can be accommodated

within their own area but outside the restricted safety corridor. 0.6 hectare of Eucalyptus 3

and 3 Bisana (Crotonmacrostachyus) trees will be affected mainly due to concrete pole


March 2016 vi

foundation civil works and line stringing.

Therefore, it is anticipated that PAPs will not move to other areas, they will only require

relocating their shops in their own holdings. There will be no change of PAP’s living

condition in terms of distance to work places and schools for their children. PAPs will be

compensated for the damage of their shops. The amount of compensation for shops will be

determined on the basis of the current cost per square meter for constructing a comparable

building.

In the project area, the two species that will be cleared for line stringing and concrete pole

foundation civil works in the 5 meter safety corridor are Eucalyptus trees and Bisana

(Crotonmacrostachyus). Survey results indicated that a total of 19,500 small, medium and

big size eucalyptus trees and 3 Bisana (Crotonmacrostachyus) will be affected due to line

stringing and concrete pole foundation civil works. Out of the total trees to be affected,

17,000 (87.2%) of the trees (small, medium and big size eucalyptus) as well as all the

Bisana trees are known for being owned by the Jiren Kebele Administration

(Government’s).

During the field assessment, information dissemination and public consultations meetings

were conducted with the affected communities, stakeholders, municipalities and local

Administration Officials. Organizations that were consulted include: Boche Bore Kebele

Administration, Jiren Kebele Administration, Environmental Protection Sector Offices, and

Agricultural and Rural Development Offices. The assessment team has discussed the

positive and negative impacts of the Distribution Rehabilitation and Upgrading Project with

the project affected people (PAPs) and with local administration officials. Generally,

communities’ attitude towards the project is positive and local officials have expressed their

willingness to support the Project in every necessary way. Participants of the meetings were

agreed on the general principles of compensation payments and requested reasonable,

sufficient and timely compensation payments for their lost assets.

In regard to the stipulated assistance for PAPs, as the project is limited to relocation of

shops in their own premises, PAPs who will relocate their shops will be paid for their

buildings. The amount of compensation for a building shall be determined on the basis of

the current price per square meter in their respective city administration.


March 2016 vii

The Distribution Rehabilitation and Upgrading Project Office and local government

administrations (City Administration and Kebele Authorities) will be responsible for the

execution of the compensation payment operations. On this basis, the Project Office should

assign a team, responsible for the effective and efficient implementation of the

compensation estimated as per the valuation methods/techniques employed. EEP will

allocate budget for the implementation of compensation payment for the expropriated

property to be implemented by the Distribution Rehabilitation and Upgrading Project. Once

the budget is approved and transferred to the project account, the implementation will be

undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimate of property is to be done by Property Valuation Committees,

established in accordance with article 10 of Proclamation No. 455/2005. The Finance

Division is responsible for processing the estimated fund and finally the compensation

payment will be disbursed through the Project office.

The total compensation cost estimate for affected shops is Birr 105,600.00 (USD 4,921.01).

On the other hand, compensation cost estimate for Eucalyptus Trees and Bisana

(Crotonmacrostachyus) is Birr 546,900.00 (USD 25,485.81). The total compensation cost of

the Project, including internal monitoring cost and contingency is about Birr 750,750.00

(USD 34,985.32).


1. INTRODUCTION

Over the past few years, Ethiopia has registered remarkable growth in the construction of

electric power plants with the view to address the ever increasing demand as result of higher

than anticipated economic improvement and renewed interest in a form of power generation.

The sector than contributing for sustainable development, create ample job opportunities

nationwide. Ethiopian Electric Power, under its additional financing for the energy access

project, has received funds from the World Bank to finance the construction of urban

distribution network rehabilitation and upgrading in Addis Ababa and seven other regional

towns namely Adama, Hawassa, Jimma, Mekelle, Dessie, Bahir Dar and Dire Dawa.

This Abbreviated Resettlement Action Plan (ARAP) is prepared for Distribution

Rehabilitation and upgrading project for Jimma City. The ARAP contains established social

inventory of households that are likely to be affected by the distribution rehabilitation and

upgrading construction activities and a proposal to mitigate adverse social impacts associated

with clearance of the Right of Way (ROW) of the sub-project and its subsequent operation.

From February 25-March 8/2016 a team of Sociologists and Environmentalists of EEP has

conducted a Socio-economic survey and asset inventory of the sub-project.

The team visited the Distribution Rehabilitation and Upgrading Project of medium voltage

line in Jimma, and identified the Project Affected areas, conducts socio economic survey, and

made consultation with city administration, Kebeles officials and Project Affected Persons

(PAPs).

Most of the distribution rehabilitation and upgrading works are carried out along the existing

road corridor and no major impacts are observed in the center of the city. But minimal Social

and Environmental impacts could be occurred around old substation, Jiren Branch of

Commercial Bank of Ethiopia in Jiren kebele and around Nur Mosque in Boche Bore Kebele.

Efforts have been made to minimize negative impacts through subsequent re-routing

distribution rehabilitation and upgrading of MV lines passes not to have a significant impact

on environmentally sensitive areas like historical or archaeological, forest, churches, schools,

endangered species, wetland, graveyards, national park, protected areas and others. However,

there are minimal environmental and social impacts that are indicated below.

The socio-economic survey revealed that about 10 shops will be relocated outside the five


meter safety corridor in Jimma distribution rehabilitation and upgrading project sites. All of

the affected shops can be accommodated within their own area but outside the restricted safety

corridor. 0.6 hectare of Eucalyptus trees will be affected mainly due to line stringing and

concrete pole foundation and erection civil works which will be cleared from the safety

corridor.

The main objective of the Distribution Rehabilitation and Upgrading Project is to rehabilitate,

expand and upgrade the distribution network of the city of Jimma to ensure safe system

operation and enable connection of new customers.

1.1. Objective of the ARAP

This ARAP is designed to meet the Ethiopian laws and World Bank requirements including

the Operational Policy 4.12, Involuntary Resettlement in respect to minimizing impacts,

consulting those likely to be affected and planning to assist those to be displaced in restoring

their livelihood. The ARAP mainly prepared to minimize social and environmental

disruptions and resettlement of people as a result of the construction of distribution

rehabilitation and upgrading of MV line. The aim is to ensure that those who will be affected

by the project are adequately compensated for their losses and/or that their incomes are

restored or improved in compliance with the national Laws and World Bank safeguard

polices.

2. KEY COMPONENTS OF THE PROJECT AND BIOPHYSICAL PROFILE

2.1. Description of the Project

The Project components under the additional Financing for the Energy access project have the

potential to provide significant social and environmental benefits. However, there are risks of

adverse environmental and social impacts. As rule of thumb, at all levels, all projects and sub

project implemented under EEP should adhere to acceptable environmental and social

safeguards for sustainable and green economy of the country. The projects should be, as far as

possible, not result in involuntary resettlement and land acquisition and where this is

necessary, minimizing by exploring all viable alternative options/measures.


The main activities of the Distribution Rehabilitation and Upgrading works include:

Concrete pole foundation civil works and pole erection;

Line stringing;

Laying underground 15 kV cable;

Switching Station erection;

Transformers and Compact substation installation;

Replacement bare low voltage conductors with insulated conductors (area

bundled conductors);

Replacement of existing medium voltage conductors with insulated wire.

Table 2-1Consolidated Medium Volt Works in Jimma Town. ITEM OF MV WORK QTY

NEW OHL 200 mm2 insulated conductors 6.9 150 mm2 insulated conductors 41.7 300 mm2 Copper cable 1.6 240 mm + A1 Cable 0 LINE EQUIPMENT Feeder RTU1 + 5 4 Switched shunt capacitor 21 Automatic voltage boosters 1 Auto reclosers’ 1 Automatic line sectionalisers 4 Switches(AB Switches or section switches) 30 Source: Contract Agreement Volume 2, p. 41-42, 21 January 2014

The Purpose of the Project is to:

Enhance reliable power supply,

Reduction of voltage drop and power loss,

Supply of electricity to new customers, and

Enhance aesthetics of the cities (by replacing old wooden poles with new concrete

poles and installation of underground cable)

The concrete poles to be used are typically about 9-14 meters high. This type of transmission

normally follows the existing road corridor for bends and a curve where it is more economical

to make shortcut if that is technically feasible.

Casual labor will be recruited from the construction area thus providing employment

opportunity to the local communities. No camp or other temporary facilities are required.


The total length of MV covers 58 Km and go across mainly Boche Bore and Jiren Kebeles of

Jimma town. The project major activities that lead to shops to be relocated and eucalyptus and

Bisana (Crotonmacrostachyus) trees to be cleared outside the safety corridor is mainly

concrete pole foundation civil works and line stringing.

The distribution rehabilitation and upgrading works generally follows the existing road

corridor and there are minimal social and environmental impacts in the project area. Measures

are taken to minimize impacts by re-routing the line but in some cases impacts are

unavoidable. There is no other way but to clear trees that are found inside the 5 meter safety

corridor. The major objective for the safety corridor is protection of persons from risk and

property damage during construction and operational phases.

2.2. Physical Environment

Jimma is located 348 km by road southwest of Addis Ababa at geographical coordinates of

7o41’N latitude and 36o 50'E longitude. While the northern and eastern parts of Jimma town

and its peripheries are characterized by hilly/ sloping landscape, its major part, including the

central, southern and western parts, is characterized by flat to gently sloping topography. The

elevation within the town boundary and its peripheries ranges from around 1700 masl in the

south/along Gilgel Gibe River to over 2000 masl in the northern periphery of the town, i.e. in

the Jiren area.

Jimma is characterized by temperate humid climate that has high precipitation, warm

temperature and long wet period. The mean annual rainfall in the area is around 1500mm and

annual potential evaporation is about 1465mm. The rainfall pattern shows major seasonal

variation ranging from mean monthly rainfall of about 38mm in January to 229 mm in

August. The main rainy season extends from April to September. The mean temperature is

between around 12oC and 29oC with the mean daily temperature of 19.5oC. Temperature

variation is observed among seasons with the warmest season extending from February to

April and the coldest season from July to September.

On the basis of information provided in the Jimma City Profile of 2008/2009, the geological

formation of the Jimma area consists of various Tertiary Volcanic and younger Quaternary

Sediments. Due to mostly thick soil formation and good vegetation cover, outcrops of the

volcanic rocks are not common in the area. The volcanic rocks vary from basalt to rhyolites in

lithology and include basaltic flows, acidic flows, ignimbrites and tuffs of the so-called


Maqdala and Ashange groups.

Two major soil types are observed in Jimma area. These are reddish brown residual soils and

alluvial soils of brownish gray and grayish white clay soils. The reddish brown soils are well-

drained soils which are found in the hilly and rolling/sloping areas. Whereas the alluvial soils

are found in the low-lying flatter or gently sloping plains and these soils are poorly drained.

Jimma town is situated within the Gilgel Gibe river catchment and almost all part of it

drained by two perennial rivers, namely Aweytu and Kitto, which join and pass through the

Boye Swamp before they join the Gilgel Gibe River. It is worth-mentioning that these streams

are highly polluted by domestic and urban wastes including uncontrolled discharge of sewage

from residential as well as commercial areas.

As the size and land use of the town is concerned, according to the recently revised master

plan of the Jimma, the town has a total area of 46.23km2. Of this, about 25.7% is planned for

residential buildings development, 2.65% for commercial activities, 4.01% for industrial

developments, 10.6% for social and public services, 2.6% for administrative zone, 15.4% for

road development, and the remaining 39.1% for other infrastructures including provision of

electric power to the town.

2.3. Biological Environment

2.3.1. Vegetation and Flora

The Jimma town and its environs including the areas in which the major project components

are situated have little undistributed natural vegetation or forestland. The vegetation and its

floristic composition in the areas of the major project components are briefly described below.

The MV Lines Corridor Joining the New Substation with Inner City

The corridor of the MV line connecting to the newly constructed Jiren Substation with inner

city has significant plantation trees dominantly Eucalyptus and Bisana

(Crotonmacrostachyus). In general there are no most contiguous areas of disturbed forest

traversed by the existing distribution network lines.

2.3.2. Wildlife

Since most part of the project area is highly disturbed and contains heavily degraded habitats,


it harbors very limited wildlife resources. Nevertheless, some parts of the periphery areas of

the town particularly the Jiren Plantation Forest are important habitats for some wildlife

species. As reported by the local people and the Jimma Zone Forestry and Wildlife

Development Enterprise, Hyenas are the predominant mammal species inhabiting the area,

and other prominent mammals include Anubis baboon, Grivet monkey, Colobus monkey,

Bush duiker and Common jackal.

Jimma town harbors’ a variety of birdlife though comprehensive study on their species

composition has not been carried. The bird species observed during the field survey include

Ducks, Eagles, Vultures, Doves, Pigeons, Egrets, Herons, Buzzards, Wattled ibis etc. Of the

faunal species identified from the project area, only a single bird species, i.e. Wattled ibis, is

known to be endemic to Ethiopia. This bird species was observed in the Boye Swamp; which

is out of the project span hence this project is not expected to cause any impacts on this

wetland habitat. According to the IUCN Red List, none of the identified fauna are classified as

threatened species.

2.4. Human Environment

2.4.1. Demographic Features

According to the 2013 projected estimate figure of Ethiopian central statistical Agency, the

total population of Jimma is 155,434 with 3.65% annual growth rate. As is true for other

urban centers of the country, Jimma consists of heterogeneous population in terms of ethnic

groups. In view of this, Oromo, Amara, Dawro, Gurage and Kafficho are the five major ethnic

groups living in Jimma.

2.4.2. Economy

According to the report of Finance and Economic Development Office of Jimma (2010), the

main economic activities in the town are commerce and small scale manufacturing

enterprises. The local urban–rural exchange in the area has contributed significant business

activities in Jimma. The industries in the town are small scale and cottage industries like grain

mils, wood and metal workshops, coffee hullers, hollow block manufacturing, bakeries and

pastries. The dominant manufacturing activities that account 70% of the total number of

manufacturing enterprises in the town are grain mills and wood works. The details are given

in table 3.3 below.


Table 2-2Dominant manufacturing enterprises in Jimma town

No Type of Industries Qty Percent

1 Grain mills 54 26.1

2 Coffee mills 11 5.2

3 Flour mills 5 2.3

4 Oil mills 1 1

5 Wood Work shop 36 17.4

6 Metal Work shop 65 31.5

7 Bakery 34 16.5

Total 206 100

Source: Finance & Economic Development Office, jimma Town, 2010 (Report)

One can infer from the table that there are no big industries in the town, hence this project

could play vital role in introducing and expansion of such industries in the town via provision

of reliable power source to such establishments’.

2.4.3. Unemployment

Assessing the structure of unemployment is useful to indicate the extent of available and

unutilized human resources that must be absorbed by the local economy to ensure full

employment. As stated in the study made during Jimma town development master plan

revision on urban economy of Jimma in 2008, there were 10280 registered unemployed

persons in Jimma town, out of whom, 3317(32%) were males and 6963(68%) females. The

total unemployment rate for Jimma reaches 29.2 percent, which is higher than the national

average. This may imply that Jimma is lagging behind in development and solving

unemployment problems than other similar urban centers of the country. The envisaged

project is expected to render job opportunity for a certain proportion of unemployed persons

of the town.

2.4.4. Prevalent Diseases

According to the morbidity statistics recorded by health centers and hospitals found in Jimma

City, the leading public health in the town is malaria. Other prevalent diseases in the order of

their dominance include upper respiratory tract infections, eye diseases, intestinal parasites,

skin infections and Genito-urinary system diseases.


2.4.5. Sanitation and Waste Disposal Management

According to the report presented by Jimma town urban local development program II (2015),

the existing solid waste disposal system in the town is poor. The town has a system of

disposal through collection and final disposal based on open field dumping. Still a significant

proportion of the solid wastes generated in the town end up in the streets, storm drainage

systems, natural streams and open spaces in the town, which in turn causes nuisance to the

community and public health hazards.

Similarly, the wastewater disposal system in the town is very poor. Aweytu and Kitto rivers

and their tributaries drain the town naturally. Many of the households and other

establishments found along these streams discharge the wastewater they generate into the two

streams and other channels that ultimately drain into these natural water bodies. The street

drainage also drains into the streams. Thus, the two rivers are heavily polluted due to the

uncontrolled disposal of sewage wastes, wastewaters and solid wastes.

2.5. Archeological, Cultural Heritage and Religious Sites

The major cultural heritage sites in the town include the palace, mosques and tombs of the

kings and their relatives at Jiren and a one storey building in the town. The palace, named as

‘Aba Jifar Palace’, is located at higher ground in Jiren Kebele and there are two mosques

within the palace compound, which were constructed during the reign of Aba Jifar II. There

are also household utensils and personal belongings of Aba Jifar II which are gathered in a

building found in the centre of the town, which is being used as a museum. ‘Mesgida

Afurtema’, is another mosque constructed during the reign of Aba Jifar II. It is located at

about 500m south of the Aba Jifar Palace compound. There is also a family cemetery of Aba

Jifar II near the Mosque 40. Furthermore, there is an old one storey building, known as

‘Melessie Foq’, in the town along the road that leads to the Jimma Airport. The building is

important because of its architectural resemblance with the Aba Jifar II palace and its

construction around the same time. Its age is around 100 years and it is probably the oldest

house in the town boundary. The above indicated historical monuments and relics have both

cultural and economic importance. They are the material evidences of the past history and

culture of the people who lived in and around the town. They are important tourist attraction

places in the Jimma area. In particular the Aba Jifar II palace and the Museum are visited by

many tourists annually. The collections in the Museum include relics mainly of household

utensils and personal belongings of Aba Jifar II, and ethnographic collections. Though,


Enquiries to residents along the distribution network lines have indicated that, to the best of

their knowledge, there are no known sites of historical or archaeological significance in the

proposed distribution lines, it is a must that precautions need to be taken during excavation

and the installation of the power lines in order to safeguard historical, archeological cultural

sites.

2.6. Infrastructures

In terms of road network, Jimma is connected with Addis Ababa by a recently upgraded

asphalted road, which is about 348km long. There are also several roads radiating from

Jimma and linking all the districts of the Jimma Zone. In addition, Jimma is connected to all

the major towns and administrative regions in the west, southwest and southern parts of

Ethiopia through major link roads. The major roads include the Jimma-Bedele-Metu-Gambela

Road and Jimma-Bedele-Nekemt Road in the west, the Jimma-Bonga-Mizan-Tepi Road in the

southwest, and the Jimma-Chida-Wolayta Road in the south. In addition, Jimma is connected

to Addis by air transport system, which is five days per week. It is also connected to Gambela,

Gore, Assosa and Tepi towns about three days in a week. With regard to telecommunication

services, Jimma has a digital telephone service as well as a postal service. Further, Jimma has

24 hours electric power supply, which is supplied from the national grid. Recurrent

interruption of power is among the foremost current problems of the town.

3. LEGAL FRAMEWORK FOR EXPROPRIATION AND COMPENSATION

3.1. Expropriation Law

The Federal Democratic Republic of Ethiopia by signing the credit agreements for the

Distribution Rehabilitation and Upgrading Project with the World Bank (WB) committed

itself to abide by the World Bank policy on involuntary resettlement. Thus, the legal

framework of the Project is based on the Constitution of FDRE as transcended into EEP’s

procedures and World Bank Operational Policies (OP/BP 4.12) on involuntary resettlement.

According to the Constitution of the Federal Democratic Republic of Ethiopia (FDRE), land is

a public property and cannot be subject to sale or to other means of exchange. In other words,

alienating land by sale, mortgage or any form of transfer with respect to land is prohibited.

Ownership of land is vested on the State while citizens have only usufruct rights over land.

The right regarding the latter may be considered “private property” and any interference of the


usufruct right, such as expropriation, shall entail compensation. A usufruct right gives the user

of the land the right to use the land and the right to benefit from the fruits of her/his labor.

This may include crops, trees, etc. found on the land or any permanent works (such as

buildings, etc.).

This is clearly provided in Article 40.7;

“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 labour or capital.”

The FDRE Constitution further states, among other things, that the owner of such rights is

entitled to compensation and that the particulars shall be determined by law. Article 40.8 in

turn strengthens this by stating that private property may be compensated if expropriated by

the government for public purposes.

The expropriation of land holdings set out in the FDRE Constitution and in the proclamation

455/2005 is mostly in agreement and in line with World Bank policies (OP and BP 4.12).

3.2. Compensation Law

The Distribution Rehabilitation and Upgrading Project include an effective and sustainable

resettlement strategy, offering adequate compensation and incentives for loss of land and

other sources of livelihood (e.g., loss of income, crop, trees, housing and other structures) and

for investments made on land by PAP’s in accordance with the law.

The Constitution of the Federal Democratic Republic of Ethiopia (FDRE) has several

provisions which have direct policy, legal and institutional relevance for the appropriate

implementation of the resettlement/rehabilitation plans prepared by development projects and

program.

Article 44 No.2 of FDRE Constitution states that:

“All persons who have been displaced or whose livelihoods have been adversely

affected as a result of state programs have the right to commensurate monetary or

alternative means of compensation, including relocation with adequate state

assistance.”

The Constitution also guarantees people whose livelihood is land based and pastoralists the


right to have access to land as well as protection against eviction from their possession

(Article 40.4 and 40.5).

Article 40.8 also states that;

“Without prejudice to the right to private property, the government may expropriate

private property for public purposes subject to payment in advance of compensation

commensurate to the value of property.”

In July 2005, the Government of Ethiopia has issued a proclamation, “Proclamation to provide

for the expropriation of land holdings for public purposes and payment of compensation”,

Proclamation No. 455/2005. This new proclamation has several articles on the determination

of compensation, compensation for displacement, valuation procedures, establishing property

valuation committees and on complaints and appeals. The proclamation gives power to

Woreda and urban administrations to expropriate and use land for public services.

Part two, article 3, No.1 of the Proclamation No. 455/2005 states that:

“A Woreda or an urban administration shall, upon payment in advance 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 the appropriate higher regional or federal government organ for the

same purpose.”

Proclamation No. 455/2005 also provides displacement compensation for rural land holdings.

Part three of article 8 states that:

“A rural landholder whose land holding has been permanently expropriated shall, in

addition to the compensation payable under article 7 of this proclamation, be paid

displacement compensation which shall be equivalent to ten times the average annual

income he secured during the five years preceding the expropriation of the land.”

The proclamation also states that in urban areas, PAPs will be provided with a plot of land

(land for land compensation) for their expropriated land to be used for the construction of

house and also be paid compensation for displacement.


3.3. Grievance Redress Mechanism

Grievances are first preferred to be settled amicably whenever possible. That is, positive

discussions are made to convince the affected PAP in the presence of elders, local

administration (municipalities, Woreda and Kebele administration) representatives or any

influential person/s in the locality.

According to Proclamation N0.455/2005, Article 11, sub article 1:

“In rural areas and in urban centers where an administrative organ to hear

grievances related to urban landholding is not yet established, a complaint relating to

the amount of compensation shall be submitted to the regular court having

jurisdiction.”

In urban areas, a PAP who is dissatisfied with the amount of compensation may complain to

an administrative organ and if the PAP is still not satisfied, may appeal to the regular appellate

court or municipal appellate court within thirty days from the date of the decision.

3.4. EEP Strategy for Expropriation and Compensation

It is the objective of EEP to avoid or reduce to a minimum level, the detrimental

environmental and social impacts and effects of the project operations, on the livelihood of

those people to be served by the project components. However, if adverse social impacts

induced by project operations are inevitable, EEP’s Resettlement/Rehabilitation Policy

Framework /RPF/ stresses that PAPs should be consulted and compensated for loss of their

properties and other inconveniences.

To achieve the social mitigation goal, EEP will allocate a budget for compensation payment

expected during project implementation. EEP in consultation with Woreda administrations for

rural areas and with municipalities for the town sections shall establish property valuation

committees as per Proclamation No. 455/2005, article 10, and number 1-3.

To implement compensation payments for the PAPs, projects may initiate the establishment of

more than one property valuation committee for each Woreda.

The compensation estimate and amount is and will be calculated by EEP Project Office and

EHS&Q Social and Environmental Experts in concert with the property valuation committees.


The payment is and will be effected by the Project office.

3.5. World Bank Operational Policies and Procedures for Involuntary Resettlement (OP

4.12 and BP 4.12)

World Bank Operational Policy (OP 4.12) and Bank’s Procedures (BP 4.12) on involuntary

resettlement serve as operational guidelines for WB-financed projects.

The World Bank, in its Operational Policy (OP 4.12) states the overall policy objectives of

involuntary resettlement as follows:

a. Involuntary resettlement should be avoided where feasible, or minimized, exploring

all viable alternative project designs.

b. Where it is not feasible to avoid resettlement, resettlement activities should be

conceived and executed as sustainable development programs, providing sufficient

investment resources to enable the persons displaced by the project to share in

project benefits. Displaced persons should be meaningfully consulted and should

have opportunities to participate in planning and implementing resettlement

programs.

c. Displaced persons should be assisted in their efforts to improve their livelihoods and

standards of living or at least to restore them, in real terms, to pre-displacement

levels or to levels prevailing prior to the beginning of project implementation,

whichever is higher.

EEP commits itself to adopt OP 4.12 and BP 4.12 as working documents in the

implementation of resettlement and rehabilitation of PAPs. The commitment of EEP to

comply with the requirements of World Bank’s Operational Policies (OP 4.12) and Bank’s

Procedures (BP 4.12) has been demonstrated, not only in the ongoing implementation of the

Energy Access Project but also in the implementation of other projects, undertaken by the

Ethiopian Electric Power .

In case of conflicts between the FDRE law and Bank Policy, Bank policy will prevail as the

Resettlement/Rehabilitation Framework and will be part of an international credit agreement

between the Government of Ethiopia and the World Bank.


3.6. Comparisons of the National Polices and the World Bank OP 4.12

There are a number of differences and gaps between the national policies and legislation and

the World Bank Policy OP 4.12. These gaps relate to the general principles for resettlement,

eligibility criteria, the notification period for expropriation and resettlement, as well as the

procedures required throughout the resettlement process. The following table is presented to

summarize the comparison of the Ethiopian Legislation and World Bank’s Operational Policy,

and portrays recommendations to address the identified gaps.


March 2016 15

Table 3-1 Summary of comparison of the Ethiopian legislation and World Bank’s Operational Policy and recommendations to address the gaps

Theme WB OP/BP4.12 Ethiopian Law Comparison Recommendation

to address gap Policy Objectives OP4.12 requires that involuntary resettlement

should be avoided wherever possible or minimized by exploring alternatives.

Resettlement program should be sustainable, include meaningful consultation with affected parties and provide benefits to affected parties Displaced persons should be assisted in improving livelihoods etc. or at least restoring them to previous levels

The Constitution of Ethiopia and Proclamation No 455/2005 give power to Woreda or urban administrations to expropriate rural or urban landholdings for public purpose where it believes that it should be used for a better development

Article 7(5) states that the cost of removal, transportation and erection shall be paid as compensation for a property targeted for the project.

Avoidance or minimization of involuntary resettlement is not specified in the Ethiopian legislation.

Proclamation No 455/2005 allows for a complaints and grievance process. Proclamation No 455/2005 allows for some form of support to the displaced persons, but does not explicitly specify consultation with affected persons through the process.

World Bank OP 4.12 overall objectives shall be applied to avoid or minimize involuntary resettlement and to ensure consultation throughout the process.

Notification period /timing of displacement

Article 10 of OP4.12 requires that the resettlement activities associated with implementation of the development project to ensure displacement or restriction of access does not occur before necessary measures for resettlement are in place. In particular, taking of land and related assets may take place only after compensation has been paid and where applicable, resettlement sites and moving allowances have been provided to displaced persons.

Article 4 of Proclamation No 455/2005 requires notification in writing, with details of timing and compensation, which cannot be less than 90 days from notification. It requires that land should be handed over within 90 days of payment of compensation payments. If there is no crop or other property on the land, it must be handed over within 30 days of notice of expropriation. It further gives power to seize the land through police force should the landholder be unwilling to hand over the land

There is a gap in Proclamation No 455/2005 to allow land to be expropriated before necessary measures for resettlement take place, particularly before the displaced person has been paid. This can have serious consequences for those affected, as they may be displaced without shelter or any means of livelihood.

OP4.12 should be applied to ensure displaced person compensatedand supported prior to handover of land to the development.

Eligibility for Compensation

OP4.12 gives eligibility to all PAPs whether they have formal legal rights or do not have formal legal rights to land, but have a claim to such land and those who do not have recognizable legal right or claim to the land.

Proclamation No 455/2005, Article 7(1) allows’ landholders’ to be eligible for compensation if they have lawful possession over the land to be expropriated and owns property situated thereon”

While Ethiopian law only grants compensation to those with lawful possession of the land, OP4.12 entitles compensation to all affected individuals regardless of landholding rights to land titles (including squatter settlements)

ENREP RPF document acknowledges in an event where there is a conflict between the national law and WB OP/BP4.12 guidelines, the WB policy prevails as resettlement framework.


March 2016 16

Compensation World Bank OP4.12 Article 6(a) requires that displaced persons be provided with prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project. If physical relocation is an impact, displaced persons must be provided with assistance during relocation and residential housing, housing sites and /or agricultural sites to at least equivalent standards as the previous site. Replacement cost does not take depreciation into account. In term of valuing assets. If the residual of the asset being taken is not economically viable,

Article 7 of Proclamation No. 455/2005 entitles the landholder to compensation for the property on the land on the basis of replacement cost; and permanent improvements to the land, equal to the value of capital and labor expended.

Where property is on urban land, compensation may not be less than constructing a single room low cost house as per the region in which it is located. It also requires that the cost of removal, transportation and erection will be paid as compensation for a relocated property continuing its service as before. Valuation formula are provided in Regulation No. 135/2007

The World Bank requirement for compensation and valuation of assets is that compensation and relocation must result in the affected person securing property and a livelihood to at least equivalent standards as before. This is not clearly stated in local Proclamations. It is expected that the regulations and directives will provide more clarity and clearer guidance in this regard.

The World Bank requirements for compensation must be followed, as per OP4.12 footnote 1, which states, “Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard”

Responsibilities of the project proponent

According to OP4.12, Article 14 and 18, the borrower is responsible for conducting a census and preparing, implementing, and monitoring the appropriate resettlement instrument. Article 24 states that the borrower is also responsible for adequate monitoring and evaluation of the activities set forth in the resettlement instrument. In addition, upon completion of the project, the borrower must undertake an assessment to determine whether the objectives of the resettlement instrument have been achieved. This must all be done according to the requirements of OP4.12. Article 19 requires that the borrower inform potentially displaced persons at an early stage about the resettlement aspects of the project and takes their views into account in project design.

Article 5 of Proclamation No 455/2005 sets out the responsibilities of the implementing agency, requiring them to gather data on the land needed and works, and to send this to the appropriate officials for permission. It also requires them to pay compensation to affected landholders

The process required for the project proponent / implementing agency lacks descriptive processes in local legislation.

As per the World Bank requirements, project processes included screening, a census, andevelopment of a plan, management of compensation payments and monitoring and evaluation of success. It must also include proper consultation with the affected parties throughout the process.


4. CENSUS AND SOCIOECONOMIC SURVEY OF AFFECTED PEOPLE

The purpose of the baseline household survey was to establish a social inventory of local

inhabitants occupying and operating livelihood activities on the ROW of clearance of the line

stringing and concrete pole foundation civil works in the 5 meter safety corridor. The survey

utilizes collection of vital and relevant information of individual PAPs and households that are

likely to be affected by the project activities. The baseline survey was carried out between

February 25-March 8/2016.

4.1. Summary of PAPs Asset Inventory

The household baseline survey targeted a total of 3 households comprising 9 individual PAPs

residing in Jiren Kebele within the project Right of Way clearance areas. On the other hand, 6

shops owned by a Mosque were identified as the affected property in Boche Bore Kebele for

the purpose of implementing the project on board.

The census and asset inventory focused on properties situated within and inside the project 5

meters ROW clearance areas. The survey identified 3 households owning 4 shops and 1

institution (Mosque) owning 6 shops to be affected by the proposed project. On top of that,

eucalyptus and Bisana (Crotonmacrostachyus) trees are also known to be affected.

4.2. Details of the Impacts Caused by Displacement

4.2.1. Impact on Property

The socio-economic survey revealed that about 10 shops will be relocated outside the five

meter safety corridor in the project sites. All of the affected shops can be accommodated

within their own area but outside the restricted safety corridor. 0.6 hectare of Eucalyptus trees

will be affected mainly due to concrete pole foundation civil works and line stringing. All

affected shops by the Project are found in two different locations. 4 Affected shops are found

in Jiren Kebele around Commercial Bank, Jiren Branch and 6 in Boche Bore Kebele around

Nur Mosque. All shops are covered with corrugated iron sheets /CIS/. The two species that

will be affected as a result of line stringing and concrete pole foundation civil works in the 5

meter safety corridor are 19,500 eucalyptus and 3 Bisana (Crotonmacrostachyus) trees.


4.2.1.1. Impacts on Shops

All of the affected shops can be accommodated within their own area but outside the restricted

safety clearance. Therefore, it is anticipated that PAPs will not move to other areas, they will

only require relocating their shops in their own holdings/ premises. There will be no change of

PAP’s living condition in terms of distance to work places and schools for their children.

PAPs will be compensated for the damage of their shops. The amount of compensation for

shops will be determined on the basis of the current cost per square meter for constructing a

comparable building. The location of the affected shops is in Jiren Kebele, around

Commercial Bank of Ethiopia, Jiren Branch and Boche Bore Kebele around Nur Mosque.

The following table summarizes all relevant data for affected shops in Jiren and Boche Bore

Kebeles of Jimma town.

Table 4-1Affected Shops

Source: Socio-economic Survey, March 2016

4.2.1.2. Impacts on Eucalyptus Trees and Bisana (Crotonmacrostachyus)

In the project area, the two species that will be affected as a result of line stringing and

concrete pole foundation civil works in the 5 meter safety corridor is eucalyptus trees and

Bisana (Crotonmacrostachyus).

Survey results indicated that a total of 19,500 small and medium size eucalyptus trees and 3

Bisana (Crotonmacrostachyus) will be affected due to line stringing and concrete pole

foundation civil works. Out of the total trees to be affected, 17, 000 (91.9%) (Small, medium

No. Household head name/ Owner

Affected house type

House in m² /Approximate/

Uses of houses

Employment Status of all adults

Location Remark

1

Terefe Alemayehu

2 CIS*

12 shops merchant Jiren kebele

Around Commercial Bank

2 Almaz Asnakech 1 CIS 4 Shop >> >> >>

3 Musema Seaid 1 CIS 4 Shop >> >> >>

4

‘Mosque’s Ownership’

6 CIS 4 Shops Boche Bore Kebele

Around Nur Mosque


and big size eucalyptus trees) as well as all the Bisana trees known to be owned by the Jiren

Kebele Administration (Government owned). The location of all affected eucalyptus and

Bisana (Crotonmacrostachyus) trees is in Jiren Kebele of Jimma town.

Affected Eucalyptus Trees

Table 4-2Affected Eucalyptus Trees

No. Owner

Types and Number of Affected Trees Location

Eucalyptus ‘Chefeka’ (Small)

‘Mager’/Purlin (Medium)

‘Quami’ (Big)

Jiren Kebele around old substation 1 Government (Jiren kebele) 12,000 6,000 1,500

Source: Socio economic survey, March 2016

Affected Bisana (Crotonmacrostachyus)

Table 4-3Affected Bisana (Crotonmacrostachyus)

No Owner Types and Number of Affected

Trees Location Small Big

1 Government (Jiren Kebele) - 3 Jiren Kebele


4.2.2. Socio-economic Characteristics of Families

The household baseline survey depicts a total of 3 households, two male and 1 female headed

households to be affected by the project. Theses households uphold a total of 9 family

members residing in Jiren Kebele within the project Right of Way clearance areas. Details of

the socioeconomic characteristics of the PAPs are presented in the following table 4-4.

Table 4-4Socio-economic Characteristics of Families


No.

Name of household head

No. of persons in household

No. of children < 13 years of age

No. of adults + 60 years of age

No. of Students

Sources of income

1 Terefe Alemayehu

5

3

-

2

Trade

2 Almaz Asnakech 2 1 - - >> 3 Musema Seaid 2 1 1 1 >>


5. ELIGIBILITY CRITERIA AND DELIVERY OF ENTITLEMENTS

5.1. Eligibility for Entitlement

The resettlement and rehabilitation are recognized as civil rights in the Ethiopian legislation

(Art. 44 No.2 of the Constitution of the FDRE), so that PAPs should be consulted and

compensated for the loss of their properties due to Government or public induced projects.

Moreover, the FDRE committed itself to abide the WB Operational Safeguard Policy on

Involuntary Resettlement. Thus, EEP shall adopt the WB`s for resettlement/rehabilitation for

the fact that the eligibility criteria set by the WB`s is basically comply with the Ethiopian

national legal requirements.

The GOE and the World Bank Resettlement Guidelines require all individuals and households

whose assets and productive resources affected as a result of the stringing project are entitled

for compensation and/or other forms of assistance. Pursuant to the policy frameworks, eligible

PAPs for entitlement under this project include households with formally recognized property

rights and those who have held land under informal purchase agreements and arrangements.

5.2. Eligibility Criteria

Concerning the lost assets the World Bank has stressed that households that have only

partially lost their assets but are no longer economically viable should be entitled to full

compensation/resettlement. Moreover, the following criteria for eligibility for the displaced

persons are adopted for the ARAP preparation:

Those who have formal legal right to land (including customary and traditional

rights recognized by the law of the Country).

Those who do not have formal legal rights to land at the time the census begins but

have a claim to such lands or assets, provided that such claims are recognized

under the laws of the Country or become recognized through a process identified

in the resettlement plan.

Those who have no recognizable legal right or claim to the land they are

occupying.

5.3. Entitlement Matrix

This ARAP is based on the National and World Bank`s Policy Framework and other relevant


laws and practices of the Government of Ethiopia. The resettlement entitlement matrix shown

in Table 4-5 is based on these legal, administrative and policy frameworks and recognizes

different types of losses associated with dislocation and resettlement. These include the loss of

house, and crop and other agricultural properties. Type and size of affected asset qualified for

entitlement and mechanisms for other forms of assistance are presented below in matrix

format.


March 2016 22

Table 5-1 Entitlement Matrix

Land and Assets Types of Impact Person(s) Affected Compensation/Entitlement/Benefits

Agricultural land Cash compensation for affected land equivalent to market value Less than 20% of land holding affected Land remains economically viable.

usage title holder Cash compensation for affected land equivalent to replacement value, taking into compensation rates as per government regulation.

Tenant/ lease holder Cash compensation for the harvest or product from the affected land or asset, equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land.

Greater than 20% of land holding lost Land does not become economically viable.

Farmer/ Title holder Land for land replacement where feasible, or compensation in cash for the entire landholding according to PAP’s choice, taking into account market values for the land, where available Land for land replacement will be in terms of a new parcel of land of equivalent size and productivity with a secure tenure status at an available location which is acceptable to PAPs. Transfer of the land to PAPs shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature )

Tenant/Lease holder Cash compensation equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land. Relocation assistance (costs of shifting + assistance in re-establishing economic trees + allowance up to a maximum of 12 months while short- term crops mature

Commercial land Land used for business partially affected Limited loss

Title holder/ business owner Cash compensation for affected land, taking into account market values for the land, where available. Opportunity cost compensation equivalent to 5% of net annual income based on tax records for previous year (or tax records from comparable business, or estimates where such records do not exist).

Business owner is lease holder

Opportunity cost compensation equivalent to 10% of net annual income based on tax records for previous year (or tax records from comparable business, or estimates where such records do not exist).


March 2016 23


Assets used for business severely affected If partially affected, the remaining assets become insufficient for business purposes.

Title holder/business owner Land for land replacement or compensation in cash according to PAP’s choice; cash compensation to take into account market values for the land, where available. Land for land replacement will be provided in terms of a new parcel of land of equivalent size and market potential with a secured tenure status at an available location which is acceptable to the PAP. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance) Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates)

Business person is lease holder

Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates), or the relocation allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance in rental/ lease of alternative land/ property (for a maximum of 6 months) to reestablish the business.

Residential land Land used for residence partially affected, limited loss Remaining land viable for present use.

Title holder Cash compensation for affected land, taking into account market values for the land, where available.

Rental/lease holder Cash compensation equivalent to 10% of lease/ rental fee for the remaining period of rental/ lease agreement (written or verbal)

Title holder Land for land replacement or compensation in cash according to PAP’s choice; cash compensation to take into account market values for the land. Land for land replacement shall be of minimum plot of acceptable size under the zoning law/s or a plot of equivalent size, whichever is larger, in either the community or a nearby resettlement area with adequate physical and social infrastructure systems as well as secured tenure status. When the affected holding is larger than the relocation plot, cash compensation to cover the difference in value. Transfer of the land to the PAP shall be free of taxes, registration, and other costs. Relocation assistance (costs of shifting + allowance)

Land and assets used for residence severely affected Remaining area insufficient for continued use or becomes smaller than minimally

Rental/lease holder Refund of any lease/rental fees paid for time/use after date of removal Cash compensation equivalent to 3 months of lease/ rental fee Assistance in rental/ lease of alternative land/ property Relocation assistance (costs of shifting + allowance)


March 2016 24


accepted under zoning laws

Buildings and structures

Structures are partially affected Remaining structures viable for continued use

Owner Cash compensation for affected building and other fixed assets taking into account market values for structures and materials. Cash assistance to cover costs of restoration of the remaining structure

Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant), taking into account market values for materials. Disturbance compensation equivalent to two months rental costs

Entire structures are affected or partially affected Remaining structures not suitable for continued use

Owner Cash compensation taking into account market rates for structure and materials for entire structure and other fixed assets without depreciation, or alternative structure of equal or better size and quality in an available location which is acceptable to the PAP. Right to salvage materials without deduction from compensation Relocation assistance (costs of shifting + allowance) Rehabilitation assistance if required (assistance with job placement, skills training)

Rental/lease holder Cash compensation for affected assets (verifiable improvements to the property by the tenant) Relocation assistance (costs of shifting + allowance equivalent to four months rental costs)Assistance to help find alternative rental arrangements Rehabilitation assistance if required (assistance with job placement, skills training)

Squatter/informal dweller Cash compensation for affected structure without depreciation Right to salvage materials without deduction from compensation Relocation assistance (costs of shifting + assistance to find alternative secure accommodation preferably in the community of residence through involvement of the project Alternatively, assistance to find accommodation in rental housing or in a squatter settlementscheme, if available) Rehabilitation assistance if required assistance with job placement, skills training)

Street vendor (informal without title or lease to the stall or shop)

Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates), or the relocation allowance, whichever is higher. Relocation assistance (costs of shifting) Assistance to obtain alternative site to reestablish the business.

Standing crops Crops affected by land acquisition or temporary acquisition or easement

PAP (whether owner, tenant, or squatter)

Cash compensation equivalent to ten times the average annual income s/he secured during the five years preceding the expropriation of the land.

Trees Trees lost Title holder Cash compensation based on type, age and productive value of affected trees plus 10%


March 2016 25


premium Temporary acquisition Temporary acquisition PAP (whether owner, tenant,

or squatter) Cash compensation for any assets affected (e.g. boundary wall demolished, trees removed)

Loss of Livelihood Households living and/or working on the project area, including title holders/non-title holders/daily laborers working in the market

Rehabilitation Assistance Training assistance for those interested individuals for alternative income generating activities; providing employment opportunities on the construction site for the PAPs.


5.4. Valuation and Compensation for Loss and Resettlement Measures

The strategy adopted for compensation of the affected properties / assets follows the Federal

Government and Regional Government laws and regulation .as well as the project

financier/WB’s requirements. The project affected populations even if they are not displaced

from their current location, they will be made to live in economically unviable situations

because of loss of land, crop, assets and housing structures. Hence, in such situations PAPs

will be offered full resettlement package. infrastructures and services affected by the

construction works of the project need to be replaced or restored to its original level or in an

improved manner. The compensation procedures and approach in this ARAP will adopt the

following five steps presented here below.

i. Establishment of Property valuation committees: Woreda level property valuation

committee is established at project implementation Woredas based on Proclamation no

455/2005. The property valuation committees will provide PAPs with details of

compensation estimates, measurement of all affected assets and properties that PAPs

will be losing. The compensation estimate and valuation will be reviewed by the

resettlement/compensation committee prior to effecting compensation payment.

ii. Assessment of properties and assets: All properties and assets affected by the project

will be assessed at a full replacement cost, which is based on the present value of

replacement.

iii. Establishing unit rates: Unit rates are established for each of the expropriated assets

and properties by the project. The unit rate is established for each of the affected

properties and assets expropriated due line stringing and concrete pole foundation and

erection civil works on the basis of current market value.

iv. Final review of unit rates, those properties and assets to be affected: Final review of

those properties and assets to be affected will be undertaken by the valuation and

compensation committees that are established at each Woreda/district level prior to the

commencement of the construction works. The valuation committee, in close

consultation with PAPs and the resettlement committee will review and establish a new

unit rate for the affected assets to be determined on the basis of market value.

v. Payment of Compensation to PAPs: Compensation payment to PAPs will be effected

after the property valuation committee makes the final estimate of compensation

payable for the affected properties at a full replacement cost. Payment to affected


properties and assets will be effected before the commencement of the construction

works. The payment procedures and mechanisms to be adopted will be simple and

easily understandable to PAPs. Compensation payment also addresses the following

four questions.

What to compensate for (e.g. land, structures, businesses, fixed

improvements or temporary impacts, lost income);

How to compensate;

When to compensate; and

Amount to be compensated

Compensation for land structures, business, fixed Improvements and other temporary impacts

are based on among other things, on market valuation, production and productivity valuation,

negotiated settlement, material land labour valuation, disposition of salvage materials and

other fees paid. If relocation of business becomes necessary, access to customers and suppliers

should be assured. In addition, workers losing employment in the process of relocating are

entitled to transitional income support. Compensation for temporary impacts is calculated on

the basis of the following criterion/principles;

Compensation equivalent to lost income required for the duration of impact,

Compensation equivalent to lost income required for loss of access, and

Physical restoration of assets (or access).

In addition, PAPs are entitled to transitional assistance which include moving expenses,

temporary residence (if necessary), employment training and income support while awaiting

employment and should have an option .for full replacement cost if duration of impact is to

exceed two years. It should be noted that costs of construction vary from one locality to the

other. PAPs that do not have license or legal permit and even squatters are eligible for

compensation payment.

The basis for valuation is FDRE's Proclamation 455/2005 and Regulation No 135/2007 as

well as, WB policy on involuntary resettlement. Valuation of affected assets and properties

will be carried out by experienced and skilled valuators. Proclamation 455/2005, states that

"The valuation of property situated on land to be expropriated shall be carried out by certified

private or public institutions or individual consultants on the basis of valuation formula

adopted at the national level."


In order to provide PAPs with adequate compensation for assets and properties they will be

losing, proper valuation will be undertaken by the valuation committee and reviewed by the

resettlement/compensation committee. The valuation committee, in close consultation with

PAPs and in collaboration with resettlement/compensation committee will prepare unit rates

for the affected assets to be determined on the basis of market value.

The proposed Distribution Rehabilitation and Upgrading Project in Jimma does not require

resettlement or relocation outside of their villages or Kebeles. Hence, there is no need of plan,

which is prepared to provide or finance housing infrastructure and social services.

5.5. Cut-off Date for Determining Eligibility

Eligibility to receive compensation is usually established through a cut-off date. Affected

people who are settled in the area prior to the cut-off date, usually the date of census, are

eligible persons (EPs). People who settle in the project affected area after the cut-off date will

not be considered for compensation. For this particular case the cut-off date is the date when

the property compensation survey completed. Using implementation of this ARAP, each

affected household head or individual person or party that claim entitlement have to prove

their legal rights over the property to be expropriated in order to qualify as a legitimate

stakeholder and receive compensation.

The impact assessment and identification of PAPs was carried out between February 2015 and

March 8, 2016. During the survey, households were advised and encouraged to report and

register residential/business facilities and their useful assets that are likely to be affected by

the proposed project activities. PAPs were also informed the cut-off date for claims as March

8, 2016, the date the baseline survey and household asset inventory completed. Any claim not

reported and registered on or before the cut of date will not be eligible for compensations and

other forms of entitlements.

6. INFORMATION DISSEMINATION AND PUBLIC CONSULTATION

6.1. Public Consultation with Affected Communities, City and Kebele Administration

During the field assessment, various information dissemination and public consultations

meetings were conducted with the affected communities, stakeholders, municipality and local

Administration Officials.


Organizations that were consulted include: Boche Bore Kebele Administration, Jiren Kebele

Administration, Environmental Protection Sector Offices, and Agricultural and Rural

Development offices. By the process, 11 female and 43 male, totaling to 54 discussants took

part in the consultation events in the respective Jimma project sites. Besides, 15 government

officials participated in the discussion and consultation processes during this ARAP

undertaking.

The assessment team has discussed the positive and negative impacts of the Distribution

Rehabilitation and Upgrading Project with the project affected people (PAPs) and with local

administration officials. On the positive side, the contribution of the project to socio-

economic development of the country in general and the supply of reliable electricity to the

surrounding area was discussed.

The need of relocating shops and the need for clearing Eucalyptus trees that are within the

safety corridor and the temporary impacts, corresponding mitigation measures, valuation and

grievance redress mechanism were discussed during all the meetings.

Generally, communities’ attitude towards the project is positive and local officials have

expressed their willingness to support the Project in every necessary way. Participants of the

meetings were agreed on the general principles of compensation payments and requested

reasonable, sufficient and timely compensation payments for their lost assets.

Brief summary of the discussion is presented below:

Explanation was given to PAPs on the nature of the Distribution Rehabilitation and

Upgrading MV line that requires 2.5 meter distance for buildings from the concrete

pole in any other direction. It is observed that buildings can be relocated in their

respective premises. However, the owner of the shops has the right to claim according

to Proclamation No. 455/2005, Expropriation of Landholdings for Public purposes

and Payment of Compensation proclamation. Accordingly, an urban land holder

whose land holdings have been expropriated be provided a plot of urban land, the size

of which shall be determined by the urban administration to be used for the

construction of shops. However, there will be partial damage of houses and they are

required to relocate outside the 2.5 meter in any direction for safety reasons, and there

will not be any land expropriation in this project.

The Distribution Rehabilitation and Upgrading Project will greatly contribute to the


country’s socio-economic development; the distribution line that passes through the

cities will supply electric power to the area and this will benefit the surrounding

communities greatly. Therefore PAPs strongly support the Project and express their

willingness to cooperate in every way that is required from them.

Timely compensation payment to be effected before the line stringing completed. The

local Administration shall guarantee PAPs for full compensation payment before the

construction completed. PAPs have also been informed that the Jimma City Officials

have the knowledge about the project.

There were prior experiences and incidents that a contractor damaged fences, cut trees and

abandoned the area; eventually changed the line route to other places. Such kinds of damages

have to be considered in the valuation of compensation even though the line route has to be

altered at the later stages. Such incidents shall be considered in the compensation valuation.

Public Consultation at Boche Bore Kebele


Affected eucalyptus trees

Affected shops

7. PROPOSED ASSISTANCE FOR PAPS

As indicated earlier, impact of the project is limited to relocation of shops in their own

premises. PAPs who shall relocate their shops will be paid for their buildings. The amount of

compensation for a building shall be determined on the basis of the current price per square

meter in their respective city administration.

8. INSTITUTIONAL RESPONSIBILITY

The Distribution Rehabilitation and Upgrading Project and local government administrations

(City Administration and Kebele Authorities) will be responsible for the execution of the

compensation payment operations. PAPs have been consulted on the compensation

arrangements. Amount of cash compensation for the affected property and trees will be

presented to each entitled PAP for consideration and endorsement before cash payment.

On this basis, the project office should assign a team, responsible for the effective and

efficient implementation of the compensation estimated as per the valuation

methods/techniques employed.

The actors in the implementation phase and their roles include:

EHS&Q Experts (planning and monitoring)


The project office (execution of compensation /rehabilitation)

Woreda administration and municipality (facilitating the process of payment of

compensation, valuation and compensation committee meetings).

PAPs (endorsement of arrangements)

9. SOURCE OF BUDGET AND COST ESTIMATE

9.1. Source of Budget

EEP will allocate budget for the implementation of compensation payment for the

expropriated property to be implemented by the Distribution Rehabilitation and Upgrading

Project.

Once the budget is approved and transferred to the project account, the implementation will be

undertaken through coordinated effort and involvement of the Project Finance Office.

The valuation and estimate of property is to be done by Property Valuation Committees,

established in accordance with article 10 of Proclamation No. 455/2005. The Finance Division

is responsible for processing the estimated fund and finally the compensation payment will be

disbursed through the Project office.

The amount of compensation will be determined according to Proclamation No. 455/2005,

Part three, Article 7. The amount of compensation will be paid at a replacement cost and also

taking into account World Bank requirements. All compensations will be effected before the

line stringing.

On the basis of the proclamation and regulation of compensation of the country and as per the

data obtained from Jimma town municipality, the standard unit cost for the affected properties

being used for calculating the required compensation budget for affected assets in the

proposed project site. The standard unit cost for the affected properties as to Jimma town

municipality is presented in the box below:


9.2. Compensation Cost Estimate of Shops to be relocated

The total compensation cost estimate for affected shops is Birr 105,600.00 (USD 4,921.01).

Respective City and Woreda Administrations compensation rates for loss of shops are used

for calculating the compensation cost estimates. Estimated size of the affected building per

m2 is multiplied by the unit price to get estimated compensation cost.

Table 9-1Compensation Cost Estimate of Shops Type of Shops Affected

Unit Quantity Impacted Area (M2)

Unit Cost/m2 (ETB)

Total Cost (ETB)

Total Cost (USD)

Corrugated iron roofed and mud walled house

Number 2 8 1,200.00 9,600.00 447.36

Corrugated iron roofed and brick/block walled house

Number 8 24 4,000.00 96,000.00 4,473.64

Total 10 32 105,600.00 4,921.01

*Source: Jimma City Administration (2016).

Exchange Rate: 1 USD = 21.459 ETH. Birr (Commercial Bank of Ethiopia March 30,

2016).

Type of Property to be affected Unit Cost/m2 (ETB)

Corrugated iron roofed and mud walled house per M2 1,200.00

Corrugated iron roofed and brick/block walled house per M2 4,000.00

Eucalyptus tree

‘Chefeka’ (Small tree) 10.00

‘Mager’/ Purlin (Medium) 46.00

‘Quami’ (Big) 100.00

Bisana (Crotonmacrostachyus)-‘Big’ 300.00


9.3. Compensation Cost Estimate of Eucalyptus Trees and Bisana (Crotonmacrostachyus)

The total compensation cost estimate for affected Eucalyptus Trees and Bisana

(Crotonmacrostachyus) is Birr 546,900.00 (USD 25,485.81).

Table 9-2Compensation Cost Estimate of Affected Eucalyptus Trees

S/No Project affected tree type

Unit Quantity Unit cost(ETB)

Total cost (ETB)

Total cost (USD)

1

Eucalyptus tree

‘Chefeka’ (Small trees)

Number 12,000 10 120,000.00 5,592.06

‘Mager’ (Purlin) Number 6,000 46 276,000.00 12,861.74

‘Big’ (Quami) Number 1,500 100 150,000.00 6,990.07

2 Bisana (Crotonmacrostachyus)-‘Big’

Number 3 300 900.00 41.94

Total cost 546,900.00 25,485.81

*Source: Jimma City Administration (2016)

Exchange Rate: 1 USD= 21.459 ETH. Birr (Commercial Bank of Ethiopia March 21,

2016)

9.4. Compensation Cost Breakdown for Affected Assets

The total compensation cost of the Project is about Birr 682,500.00 (31,804.84). The budget

also includes internal monitoring cost.

Table 9-3Compensation Cost Breakdown for Affected Assets

Item for Compensation Unit Quantity

Total Cost for Compensation (Birr)

Total Cost for Compensation in (USD)

Total Shops to be relocated No. 10 105,600.00 4,921.01

Loss of Eucalyptus trees 19,500 546,000.00 25,443.87

Loss of Bisana (Crotonmacrostachyus)

>> 3 900.00 41.94

Monitoring cost 30,000.00 1,398.01 Sub Total 682,500.00 31,804.84 Contingency 10% 68,250.00 3,180.48 Total 750,750.00 34,985.32

The amount of compensation for each owner of the eucalyptus trees is determined according

to Proclamation No. 455/2005 by valuation committees that are already established in the


respective City Administration and Woreda.

10. RESETTLEMENT SCHEDULE

The implementation process is assumed to begin before the start of the actual construction

works and has to be completed before the start of the actual construction work. The starting

point in this process is the establishment of both Resettlement Implementation Committee

(RIC) and the Property Valuation Committee at Woreda level. The committees will be

responsible for the smooth implementation of the ARAP. As to the prevailing ARAP, all the

necessary steps have been taken in to account. Consultations/discussions have been held with

the officials of Jimma town municipality and other relevant stakeholders. Table 10-1 presents

details of the activities along with aligned time frame.

Table 10-1Resettlement Schedule

Activities

Date

Remark

Establishment of RIC and Property Valuation

Committee January – February 2016

Awareness Creation and Issuing of legal

Notification for Compensation February 2016

Socio-economic survey and asset inventory February 25- March 8, 2016

Preparation of Draft ARAP March 28 –April 1, 2016

Comment from stakeholders April 2016

Submission of final ARAP May 1- 15, 2016

Implementation of ARAP May – June 2016

Monitoring ARAP On-going over the project period

11. MONITORING/FOLLOW UP ACTIVITIES

Monitoring and evaluation are continuous process. EEP and 8 Cities Distribution

Rehabilitation and Upgrading Project Office will be responsible for the overall supervision of

the implementation of the ARAP. The monitoring and evaluation process should be an

integral part of this ARAP and will be a device for overseeing the implementation of ARAP

and the extent to which it complies with the recommendations set out in the ARAP. Lessons

learnt from the monitoring and evaluation results will be used to enhance the preparation and

implementation of future resettlement action plans.


The Actors in the monitoring and evaluation process include:

The EHS& Q Social and Environmental experts of EEP.

Municipality and Kebele Administration (for monitoring and evaluation)

Project Affected Persons (PAPs)

Field visit by the Project office will be conducted at least once in a month. Municipalities and

Kebele Administration will conduct their own monitoring, but when possible, this will be

done together with Project office and EHS&Q experts.

The EEP management team will make the necessary follow-up to ensure that proper

monitoring is being undertaken.

The monthly monitoring report prepared by PIU staff will be submitted to local authorities

(Woreda and Municipality). A copy of this will be submitted to MEFCC and EEP

management. It will also be enclosed in the construction progress reports submitted by the

supervising engineers.

12. EVALUATION

After completion of the resettlement/relocation operations, it is expected that PAPs will have

a better or improved way of life compared to their previous situation. Therefore, relocation

operations need to be monitored and evaluated to determine if PAPs have been able to re-

establish their livelihood and living situation.

EEP will assign a qualified Sociologist/Social scientist to conduct individual evaluations of

PAPs re-establishment socio-economic progress. This service aims at evaluating, and

reporting on the level of living conditions and social services of the PAPs, both before and

after the re-establishment. The evaluation will be done on quarterly and annual basis for two

consecutive years.

The evaluation work will be carried out within 6-12 months after the relocation date. Further

assistance such as transportation services for PAP’s properties and loading/ unloading costs

during relocation will be provided by EEP for those families who need support.


ANNEX I: MINUTES OF MEETING


;


ANNEX II: PHOTOS


ANNEX III: CONTACTED PERSONS

S/no

Name of contacted persons

Job title Contact address

1 Mohamed Ababor Jimma Town Mayor Office Head 0911723868

2 Tahir Abamecha Jimma Municipality Electrical Engineer 0917801032

3 Lemlem Aklilu Jimma EEU Drafts Person 0913835987

4 Girum Bezabh Jimma Municipality Infrastructure Development Unit Coordinator

5 Workenesh Iticha Jimma Town Environment Office D/Head 0923339963

6 Abdo Ababor Mentina Kebele -Resident 0917051402

7 Nebiyat Sharew Jimma Town Environment Office Head 0917801820

8 Olani Kelbessa Environment Awareness Creation Officer 0911833811

9 Abdulhafiz Ahmed Municipal Capital Investments Focal Person 0937585890

10 Abdulmelic Melik Jimma ULGDP II EHS Focal person 0913488306

11 Kebede Tekle Ginjo Guduroo kebele-Archive 0917250354

12 Jafer Aba Mecha Boco Bore Kebele- Muncipal Manager 0913961929

13 Jehad Tulema Boco Bore Kebele- Cabinet secretary 0917833199

14 Andualem Alemayehu Jimma Town Communication Officer 0917802905

15 Almaz Mekonnen Jimma Kito Kebele Resident 0917407717

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