resettlement policy framework - uwssp

7/25/2019 Resettlement Policy Framework - UWSSP

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FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

ADDIS ABABA WATER AND SEWERAGE AUTHORITY

URBAN WATER SUPPLY & SANITATION PROJECT

RESETTLEMENT POLICY FRAMEWORK

DRAFT

PREPARED FOR: ADDIS ABABA WATER AND SEWERAGE AUTHORITY

PREPARED BY: F.GIOVANNETTI, 6 RUE F. MAURIAC, 84000 AVIGNON, FRANCE

RP520


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25 January 2007

Revision 1


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AAWSA Resettlement Policy Framework

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Contents

EXECUTIVE SUMMARY ............................................. .................................................. .................. A

THEPROJECT...............................................................................................................................A

POTENTIALIMPACTS ONLAND, PEOPLE ANDLIVELIHOODS......................................................A

LEGALBACKGROUND...................................................................................................................BRESETTLEMENT AND COMPENSATIONPRINCIPLES....................................................................B

RPF PROCESSES..........................................................................................................................C

ENTITLEMENTS............................................................................................................................C

OTHERRPF PROVISIONS.............................................................................................................D

1 SCOPE OF THE REPORT INTRODUCTION ...................................................................1

1.1 SCOPE AND CONTENTS OF THIS REPORT............................................................................ 1

1.2 KEY DEFINITIONS............................................................................................................... 1

2 PROJECT DESCRIPTION AND PROJECT POTENTIAL IMPACTS..............................3

2.1 PROJECT OBJECTIVES .......................................................................................................3

2.2 PROJECT COMPONENTS..................................................................................................... 3

2.2.1 Component 1: Addis Ababa Water Supply and Sanitation .................................... 32.2.2 Component 2: Secondary City Water Supply and Sanitation................................ 42.2.3 Key Inputs for Components 1 and 2 ...................................................................... 52.2.4 Key Outputs for components 1 and 2 .................................................................... 52.2.5 Component 3: Project Management and Monitoring and Evaluation.................. 5

2.3 POTENTIALLANDIMPACTS OFPROJECTACTIVITIES.......................................................5

3 LEGAL FRAMEWORK ...........................................................................................................6

3.1 THE CONSTITUTION OFETHIOPIA, 1995...........................................................................6

3.1.1 Protection of the Right to Private Property...........................................................6

3.1.2 Ownership of Land and of Immovable Assets Built on Land ................................ 63.1.3 Expropriation and Resettlement............................................................................ 6

3.2 THE CIVIL CODE OF THEEMPIRE OFETHIOPIA, 1960..................................................... 7

3.2.1 Expropriation for Public Interest .......................................................................... 73.2.2 Indirect Expropriation........................................................................................... 8

3.3 LAND TENURE REGIME INETHIOPIA................................................................................. 8

3.4 RURALLANDADMINISTRATIONPROCLAMATION, 1997 ...................................................9

3.5 WORLDBANK SAFEGUARD POLICY ON INVOLUNTARY RESETTLEMENT......................... 10

4 PRINCIPLES, OBJECTIVES, AND PROCESSES RELATED TO

COMPENSATION AND RESETTLEMENT IN THE UWSS PROJECT......................... 11

4.1 PRINCIPLES AND OBJECTIVES......................................................................................... 114.1.1 Regulatory Framework ....................................................................................... 114.1.2 Minimization of Displacement............................................................................. 114.1.3 Cut-Off Date and Eligibility ................................................................................ 114.1.4 Livelihood Restoration ........................................................................................ 134.1.5 Compensation......................................................................................................13 4.1.6 Consultation Grievance mechanisms ...............................................................13

4.2 PROCESSES....................................................................................................................... 13


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4.2.1 Overview of the ESMF Process...........................................................................134.2.2 Overview of the RPF Process..............................................................................14

4.3 CENSUS OFAFFECTEDASSETS ANDAFFECTEDHOUSEHOLDS..................................... 16

4.4 RESETTLEMENTACTIONPLAN........................................................................................ 16

4.5 ABBREVIATEDRESETTLEMENTPLAN............................................................................. 16

4.6 SITUATIONS WHERE LESS THAN 10PEOPLE ARE AFFECTED........................................... 16

4.7 WORK PACKAGES.............................................................................................................. 16

5 AFFECTED ASSETS, AFFECTED PEOPLE AND ENTITLEMENTS............................17

5.1 LAND ................................................................................................................................17

5.1.1 Estimates of Surfaces Potentially Required......................................................... 175.1.2 Categorization of Land Needs.............................................................................175.1.3 Land Tenure Regimes .......................................................................................... 18

5.2 OTHERPOTENTIALLYAFFECTEDASSETS....................................................................... 18

5.3 ENTITLEMENTS................................................................................................................ 18

6 RESETTLEMENT AND COMPENSATION .......................................................................21

6.1 METHODS FOR VALUATION OFAFFECTEDASSETS........................................................ 216.1.1 Ascertaining Eligibility ....................................................................................... 216.1.2 Land and Rights-Of-Way ..................................................................................... 216.1.3 Structures.............................................................................................................21 6.1.4 Crops................................................................................................................... 216.1.5 Auditing............................................................................................................... 22

6.2 RESETTLEMENT AND COMPENSATION............................................................................. 22

6.2.1 Resettlement Land Replacement....................................................................... 226.2.2 Compensation......................................................................................................22 6.2.3 Auditing............................................................................................................... 23

7 CONSULTATION AND DISCLOSURE ...............................................................................24

7.1 CONSULTATION ON THERESETTLEMENTPOLICYFRAMEWORK.................................... 24

7.2 CONSULTATION ONRAPS ANDARPS.............................................................................. 24

7.3 DISCLOSUREREQUIREMENTS .........................................................................................24

8 GRIEVANCE MANAGEMENT MECHANISMS................................................................25

8.1 POTENTIAL GRIEVANCES/DISPUTES............................................................................... 25

8.2 PROPOSED GRIEVANCEMANAGEMENTMECHANISM.....................................................25

8.2.1 Registration of Grievances.................................................................................. 258.2.2 First Instance Amicable Settlement..................................................................258.2.3 Appeal to Court................................................................................................... 26

9 VULNERABLE PEOPLE .......................................................................................................289.1 IDENTIFICATION OF VULNERABLEPEOPLE.................................................................... 28

9.2 POTENTIALASSISTANCEACTIVITIES TO VULNERABLEPEOPLE.................................... 28

10 MONITORING AND EVALUATION...................................................................................30

10.1 GENERAL OBJECTIVES OFMONITORING & EVALUATION.............................................. 30

10.2 AUDITING ANDMONITORINGDURINGIMPLEMENTATION.............................................30

10.2.1 Scope and Content...............................................................................................3010.2.2 Reporting............................................................................................................. 30


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10.3 EVALUATION.................................................................................................................... 31

10.4 REPORTING ......................................................................................................................31

11 IMPLEMENTATION RESPONSIBILITIES AND FUNDING .......................................... 32

11.1 IMPLEMENTATIONRESPONSIBILITIES............................................................................ 32

11.2 BUDGET............................................................................................................................ 32

11.3 ARRANGEMENTS FORFUNDING ......................................................................................34

APPENDIX 1: LIST OF ACRONYMS ........................................... ................................................. 35

APPENDIX 2: FRAMEWORK FOR THE CENSUS OF AFFECTED ASSETS AND

AFFECTED PEOPLE .................................................. .................................................. .........36

AFFECTEDPLOT SHEET............................................................................................................. 36

AFFECTEDBUILDING SHEET.....................................................................................................37

AFFECTEDHOUSEHOLD SHEET ................................................................................................38

APPENDIX 3: OUTLINE OF A RESETTLEMENT ACTION PLAN.........................................40

APPENDIX 4: OUTLINE OF AN ABBREVIATED RESETTLEMENT PLAN.........................42

APPENDIX 5: TEMPLATE ITEMIZATION OF A RAP/ARP BUDGET .................................. 43

APPENDIX 6: TEMPLATE OF A CLAIM REGISTRATION AND FOLLOW-UP FORM ....44

APPENDIX 7: TEMPLATE OF A CONSULTATION MEETING MINUTE FORM ............... 46

Tables

Table 1: Estimated Land Requirements for Systems Considered Under the UWSS Project.........................17Table 2: Impact / Entitlement Matrix .................... .................... ...................... ................... ...................... .....19Table 3: Implementation Responsibilities .................. ....................... .................... ...................... ..................32

Figures

Figure 1: ESMF Process Environmental Baseline Assessment and Environmental Review ............ .........14Figure 2: RPF Process ................... ..................... .................... ..................... .................... ..................... .........15Figure 3: Grievance / Dispute Management Mechanism .................... ..................... ...................... ...............27


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EXECUTIVE SUMMARYTHE PROJECT

The Urban Water Supply and Sanitation Project is a project to enhance water supply andsanitation in Addis Ababa and four other Ethiopian cities. Its objectives are essentially:

- To reduce the supply-demand gap for potable water in selected urban areas inEthiopia:

- To improve access to improved sanitation in selected urban areas of Ethiopia; and- To improve the performance of selected urban water and sewer utilities through

sector reform and increased private sector participation.

The UWSS will include three main components:

- Component 1: Addis Ababa Water Supply and Sanitationo Component 1A: Increased access to water supply and sanitation, with an increase in water

production from 200,000 to 300,000 m3/day to meet basic services. This will be obtainedthrough capacity expansion at the Legedadi reservoir and water treatment plant, and deepboreholes at selected sites within Addis Ababa, as well as a new well field locatednorthwest of the city. Distribution networks will be expanded to serve currently unservedareas. The sewer system in the Kalite catchment will be extended, and public sanitationfacilities, managed by local service providers who charge a user fee, will be constructed.

o Component 1B: Improved operational efficiency and demand management: Thiscomponent will mainly aim at reducing non-revenue water and improve operational

efficiency. AAWSAs financial management, billing/collection, and customer

management system will also be improved, and awareness for water conservation will be

created.

o Component 1C: Institutional Reform, which will include:

sector policy development and revisions in the legal and institutional framework

for water supply and sanitation,

developing policies and measures for enhanced private sector participation and

financing in this sector,

improving utility governance and efficiency.

- Component 2: Secondary City Water Supply and Sanitation:

o Component 2A: Increased access to water supply and sanitation: this component will

mainly address water production issues, as well as the extension of distribution networks,

particularly in unserved areas and for new connections.

o Component 2B: Improved operational efficiency: Operational efficiency will be improved

by reducing non-revenue water and improving financial management, billing and

collection, and customer management.

o Component 2C: Institutional Reform: Enabling legislation will be developed to provide

more autonomy to the Water Boards and to develop procedures and codes of conduct.

Operator contracts with performance targets and performance incentives would also be

developed and tested.

- Component 3: Project Management and Monitoring and Evaluation

POTENTIAL IMPACTS ON LAND, PEOPLE AND LIVELIHOODS

The Project will entail limited land acquisition, and therefore have overall limited impacts onland, people and livelihoods. Main activities under the UWSS Project that may entail landacquisition and/or displacement are the following:


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- Wells and well fields;- Rehabilitation of dams or reservoirs;- Water intakes from surface water bodies;- Raw water treatment plants and storage facilities;- Water distribution networks including pipelines, public standtaps, public water

kiosks and other distribution-related facilities;

- Construction of power lines and related rights-of-way;- Waste water treatment plants, including treatment ponds and ancillary works.

No activities with large impacts on land are envisioned (such as the construction of newstorage dams and related reservoirs).

LEGAL BACKGROUND

The legislation applicable to compensation and resettlement in Ethiopia mainly includes thefollowing two pieces:

- The Constitution, which established principles applicable to private property and its

protection, as well as the deprivation thereof for public interest, and puts forward generalprinciples applicable to compensation and resettlement (resettlement being an option, incontrast with many other African countries),

- The Civil Code (an old code dating back from the Empire), which includes detailedprovisions applicable to the calculation of compensation in the event of expropriation,

It is important to note that freehold private ownership of land is not recognized in Ethiopia,

as all land is deemed to be property of the State. In urban settings, residents are allocated

residential land under leasehold or tenancy arrangements, while in rural areas, allocation of

agricultural land under tenancy or sharecropping arrangements is the most common rule.

OP 4.12, the World Bank safeguard policy on Involuntary Resettlement, will apply to the

UWSS Project.

RESETTLEMENT AND COMPENSATION PRINCIPLES

The main principles that will apply to any resettlement and compensation activities that may

be required for implementation of the UWSS are the following:

- General framework: Any impact of the UWSS Project on land and/or people (landacquisition, resettlement, livelihood restoration of affected people) will be addressed incompliance with the Constitution of Ethiopia, with other Ethiopian regulations, and with theWorld Bank safeguard policy in involuntary resettlement (OP 4.12).

- Minimization of displacement: In line with the World Bank safeguard policy OP 4.121,the UWSS Project will minimize displacement through the following design procedures:o Wherever inhabited dwellings may potentially be affected by a component of a sub-

project, the sub-project shall be redesigned (facility relocation, rerouting) to avoid anyimpact on such dwellings and to avoid displacement/relocation accordingly;

o Wherever the impact on the land holding of one particular household is such that thishouseholds may not be sustainable in the long term, even if there is no need to physically

1Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable

alternative project designs.


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displace this household, the sub-project shall be redesigned (facility relocation, rerouting)to avoid any such impact;

o For major water works like raw water treatment plants, minimization of land impact willbe factored into site and technology selection and design criteria;

o Costs associated with displacement and resettlement will be internalized into sub-projectcosts to allow for fair comparison of processes and sites;

o To the extent possible, Project facilities will be located on public spaces;

o Pipelines, public taps, other linear infrastructures (power lines) required by the UWSSProject will be routed inside existing right-of-ways (roads, streets, power lines) whereverpossible.

- Cut-Off Date and Eligibility:o In accordance with OP 4.12 and for each sub-project under the UWSS that may entail

displacement impacts, a cut-off date will be determined, taking into account the likelyimplementation schedule of the sub-project.

o In line with OP 4.12, the following three categories of affected people will be eligible toProject resettlement assistance: those who have formal legal rights to land (including customary and traditional

rights recognized under the laws of the country); those who do not have formal legal rights to land at the time of the cut-off but

have a claim to such land or assetsprovided that such claims are recognizedunder the laws of Ethiopia or become recognized through a process identified inthe resettlement plan

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

occupying.

- Livelihood Restoration: where people are affected by land take, the aim of resettlement

will be that they should no worse-off if not better off after resettlement.

- Compensation:

o Compensation shall be paid prior to displacement;

o Compensation will be at replacement value.

- Consultation Grievance mechanisms: Consultation will include:o meaningful information and consultation, before and during the compensation and

resettlement process,

o a specific grievance registration and processing mechanism.

RPF PROCESSES

Depending on the number of affected individuals, processes in the framework of this RPF willinclude:

- the development of a full Resettlement Action Plan (RAP) if more than 100 individuals

are affected by a given sub-project,

- the development of an Abbreviated Resettlement Plan if between 10 and 100 individuals

are affected,- the census of affected people without specific requirements pertaining to documentation

disclosure if less than 10 people are affected.

ENTITLEMENTS

The following table summarizes the entitlements for each category of loss:


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Type of Impact Entitlement

Permanent loss of land held underlong-term urban lease

Replacement by a similar piece of land (similar in location, potential andsize), held under similar tenure arrangements (long-term urban lease)

OR

Cash compensation at replacement value, based on price per square meterobserved in recent transactions in the same area for similar types of land

Permanent loss of land held undertenancy or sub-tenancy agreement

Replacement by a similar piece of land (similar in location, potential andsize), held under similar tenure arrangements (tenancy)

No cash compensation for loss of rented land

Loss of sharecropping rights over apiece of agricultural land

Access to similar or better rights (at least sharecropping, or if possibletenancy) over a piece land of similar agricultural potential

Right-of-Way with restrictions (forexample restriction on height oftrees and crops making certaincrops impossible)

Depending on the regime of occupation:

- For long term urban leases, cash compensation of the loss in valueresulting from the restriction (usually in the order of 10 to 30% of thetotal land value of the affected strip for right-of-ways associated withpipeline and transmission line)

- For tenancy and sub-tenancy agreements, no cash compensation;access to a replacement piece of land in reason of the value of therestriction

Temporary land occupation Cash compensation for income lost during the period where plot was notusable by user

Loss of uninhabited structure Cash compensation at replacement value or replacement by a similar structure

Loss of inhabited dwelling Resettlement in similar dwelling in a location with similareconomic/agricultural potential

Loss of annual crop Compensation of lost harvest at market price if the crop could not beharvested

Loss of perennial crops andvaluable trees

Compensation of lost harvest at market price if the crop could not beharvested

PLUS

Compensation of the cost of planting (seedling plus labour)

PLUS

Compensation of the income lost during the period of time required to re-establish the plantation to a similar level of production (this period of timedepends on the species grown, it is generally in the range 1 year banana orpapaya trees for example - to 5 or 6 years for mango trees to be determined

following regional/woreda practice

OTHER RPF PROVISIONS

The full RPF report contains detailed provisions related with:- Monitoring and evaluation,- Grievance mechanisms,- Assistance to vulnerable people,- Implementation arrangements, and responsibilities for the different tasks involved by the

implementation of the RPF.


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Scope of the Report introductionSCOPE AND CONTENTS OF THIS REPORT

This report is the draft Resettlement Policy Framework (RPF) for the Urban Water Supplyand Sanitation (UWSS) Project. It has been prepared in December 2006 and January 2007 by

independent consultants contracted by AAWSA under World Bank financing.

The development of a RPF is a requirement for projects that may entail involuntaryresettlement under the World Bank safeguard policy on involuntary resettlement (OP 4.12,December 2001). This RPF is fully endorsed by the Government of the Federal DemocraticRepublic of Ethiopia and presented for public consultation through the World Bank PublicInformation Centre.

This report includes the following chapters:

- Description of the Project- Legal Framework

- Affected People and Eligibility- Principles, Objectives and Processes- Resettlement and Compensation Packages- Implementation- Grievance Mechanisms- Monitoring and Evaluation- Arrangements for Funding

Appendix 1 presents the list of acronyms used throughout this document.Appendix 2 provides a list of documents used for the development of this report.

KEY DEFINITIONS

Project: The UWSS Project.

Sub-Project: A water supply and/or sanitation project within the UWSS Project benefitingone particular urban area or one town.

Project-Affected Person (PAP): Any person who, as a result of the implementation of theProject, loses the right to own, use, or otherwise benefit from a built structure, land(residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed ormoveable asset, either in full or in part, permanently or temporarily. Not all PAPs need tomove due to the Project. PAPs may include:

Physically Displaced People, i.e. people subject to Physical Displacement asdefined hereunder,

Economically Displaced People, i.e. people subject to Economic Displacement asdefined hereunder.

Physical Displacement: Loss of shelter and assets resulting from the acquisition of landassociated with the Project that requires the affected person(s) to move to another location.


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Economic Displacement: Loss of income streams or means of livelihood resulting from landacquisition or obstructed access to resources (land, water or forest) caused by the constructionor operation of the Project or its associated facilities. Not all economically displaced peopleneed to relocate due to the Project.

Project-Affected Household (PAH): A PAH is a household that includes Project-Affected

Persons as defined above. A PAH will usually include a head of household, his/her spouseand their children, but may also include other dependents living in the same dwelling or set ofdwellings, like close relatives (e.g., parents, grandchildren).

Compensation: Payment in cash or in-kind at replacement value for an asset or a resource thatis acquired or affected by the Project at the time the assets need to be replaced. In this RAP,cash compensation means compensation paid in cash or by cheque.

Cut-Off Date: Date of completion of the census and assets inventory of persons affected by

the project. Persons occupying the Project area after the cut-off date are not eligible for

compensation and/or resettlement assistance. Similarly, fixed assets established after the cut-

off date are not eligible for compensation.

Resettlement Assistance: Support provided to people who are physically displaced by the

Project. Assistance may include transportation, and social or other services that are provided

to affected people during their relocation. Assistance may also include cash allowances that

compensate affected people for the inconvenience associated with resettlement and defray the

expenses of a transition to a new locale, such as moving expenses and lost work days.

Replacement Value: The rate of compensation for lost assets must be calculated at full

replacement value, that is, the market value of the assets plus transaction costs. The

replacement value must reflect the cost at the time the item must be replaced. With regard to

land and structures, replacement value is defined as follows:

- Agricultural land: the market value of land of equal productive use or potential

located in the vicinity of the affected land, plus the cost of preparation to levels

similar to or better than those of the affected land, plus the cost of any registration

and transfer taxes;

- Land in urban areas: the market value of land of equal size and use, with similar or

improved public infrastructure facilities and services, preferably located in the

vicinity of the affected land, plus the cost of any registration and transfer taxes;

- Household and public structures: the cost of purchasing or building a new

structure, with an area and quality similar to or better than those of the affected

structure, or of repairing a partially affected structure, including labor and

contractors fees and any registration and transfer taxes.

In determining the replacement cost, depreciation of the asset and the value of salvage

materials are not taken into account, nor is the value of the benefits to be derived from the

Project deducted from the valuation of an affected asset.

Vulnerable Groups: People who by virtue of gender, ethnicity, age, physical or mental

disability, economic disadvantage, or social status may be more adversely affected by

resettlement than others and who may be limited in their ability to claim or take advantage of

resettlement assistance and related development benefits.


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Project DESCRIPTION AND PROJECT POTENTIALIMPACTSPROJECT OBJECTIVES

The proposed project development objectives are to:- Reduce the supply-demand gap for potable water in selected urban areas in

Ethiopia:- Improve access to improved sanitation in selected urban areas of Ethiopia; and- Improve the performance of selected urban water and sewer utilities through sector

reform and increased private sector participation.

In achieving these objectives, labor intensive construction methods for small diameterdistribution piping and improved services for low-income areas will be adopted.

As a result of the proposed project, urban residents in the cities where the project isimplemented will have increased access to potable water and improved sanitation facilities.

In these urban areas, the hours of water availability will be increased for those already usingpiped water and, in addition, the water networks will be rehabilitated and expanded to providemore people with piped supply.

The project will also increase access to improved sanitation facilities, mainly for low incomeurban residents. In low income areas, the project will also provide improved drainage andreduce un-controlled and unhealthy sewage flows.

The project will also undertake legal, institutional and sector reforms that will permit selectedurban water and sewer utilities to function in a more efficient manner, to deliver better serviceand achieve a higher degree of financial sustainability.

Project components are designed to: (i) increase potable water supplies; (ii) increase access tothe piped and sewerage networks; (iii) rehabilitate existing piped networks; (iv) continuereform of the sector, including the provision for private sector participation; and (v) ensure thesmooth implementation of the project.

The estimated total project budget is US$129 million. Several donors, including the WorldBank, are likely to be involved.

PROJECT COMPONENTS

Component 1: Addis Ababa Water Supply and Sanitation

Component 1A: Increased access to water supply and sanitation

To address the water supply crisis in Addis Ababa, water production must be increased from200,000 to 300,000 m3/day to meet basic services. This component will finance capacityexpansion at the Legedadi reservoir and water treatment plant, and deep boreholes at selectedsites within Addis Ababa and a new well field located northwest of the city. It will alsofinance the extension of the distribution network to unserved areas and new connections.Special attention will be given to low-income areas by involving communities in the planningprocess and improving drainage. The sewer system in the Kalite catchment will be extended,


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and public sanitation facilities, managed by local service providers who charge a user fee, willbe constructed.

Component 1B: Improved operational efficiency and demand management

Given the high marginal cost of water in Addis Ababa and non-revenue water exceeding 35%,operational efficiency must be improved and water conservation must be instilled in

consumers. Improved financial management, billing and collection, and customermanagement are also essential in establishing financially viable water companies that can paythe high cost of expansion. Financing under this sub-component will establish pressure zonesand leak detection areas within the distribution network. AAWSAs financial management,billing/collection, and customer management system will also be improved, and awareness for

water conservation will be created. Catchment protection measures will be taken at the city

reservoirs.

Component 1C: Institutional Reform

Funding would be provided for:

- sector policy development and revisions in the legal and institutional framework

for water supply and sanitation,- developing policies and measures for enhanced private sector participation and

financing in this sector,- improving utility governance and efficiency. Stakeholder consultation measures are also

included in this component.

Component 2: Secondary City Water Supply and Sanitation

Component 2A: Increased access to water supply and sanitation

Water production in the four secondary cities targeted by UWSS is 35 liters per capita per day

(lpcd), of which about 25 lpcd actually reaches consumers. In comparison, water production

in cities of this size in other countries in Africa is between 75 and 100 lpcd. On average,

water production should be doubled in these cities. This component will finance increased

water production as well as the extension of the distribution network, particularly in unservedareas and for new connections. Selected low-income areas will receive special attention by

involving communities in the planning process for water distribution and public sanitation

facilities. Financing will also be available for the construction/expansion of waste water

treatment ponds and piped sewerage in higher density commercial areas.

Component 2B: Improved operational efficiency

The water utilities in the four participating cities perform reasonably well, but operational

efficiency could be improved by reducing non-revenue water and improving financial

management, billing and collection, and customer management. Under this sub-component

the materials, equipment and costs associated with establishing pressure zones and leak

detection areas will be provided, as will leak repairs in the distribution network and at serviceconnections. Financial management, billing/collection, and customer-management can also be

improved.

Component 2C: Institutional Reform

Funding will be provided to refine enabling legislation to provide more autonomy to the

Water Boards and to develop procedures and codes of conduct. Operator contracts with

performance targets and performance incentives would also be developed and tested.


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Key Inputs for Components 1 and 2

- Expand water production/distribution and waste water treatment/collection;- Add new service connections for water and waste water;- Create pressure zones within the distribution network;- Repair leaks in distribution piping and at service connections;- Replace old meters;- Improve financial management, billing/collection and customer-management systems;- Create public awareness for water conservation; and implement a catchment

management plan.- Consultant services for design and supervision of the civil works, financial management,

and water conservation will also be provided.

Key Outputs for components 1 and 2

- To improve access to water, that is, increase the number of people with improved watersupply - water production, distribution, and connections will be increased to 90 percent ofhouseholds; 24 hour per day service will be provided to all areas within the city; and sanitationplans will be implemented.

- To improve operational efficiency and manage demand, non-revenue water will bereduced by 10 percent, and 80 percent of costs will be recovered through tariff (i.e. recurrent,

renewal/replacement of short life assets, and expansion excepting distribution/connections forlow-income households).- To establish better performing utilities, autonomous water boards, with operators

working under performance based contracts will be established.

Component 3: Project Management and Monitoring and Evaluation

The project management will involve sector institutions at federal and regional levels, cityadministrations and utilities. Funding would be provided for costs associated with projectimplementation, to synthesize existing water and sanitation access data to determine baselinefigures and to monitor progress under this project and in meeting the overall water supply andimproved sanitation access goals under the Millenium Development Goals (MDG). Thiscomponent also includes training, workshops and other capacity building measures and

support for environmental and social management.

POTENTIAL LAND IMPACTS OF PROJECT ACTIVITIES

Main activities under the UWSS Project that may entail land acquisition and/or displacementare the following:

- Wells and well fields;- Rehabilitation of dams or reservoirs;- Water intakes from surface water bodies;- Raw water treatment plants and storage facilities;- Water distribution networks including pipelines, public standtaps, public water

kiosks and other distribution-related facilities;- Construction of power lines and related rights-of-way;- Waste water treatment plants, including treatment ponds and ancillary works.


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Legal FrameworkTHE CONSTITUTION OF ETHIOPIA, 1995

The Constitution of the Federal Democratic Republic of Ethiopia, 1995, includes provisionsthat protect the Ethiopian citizens rights upon private property and set the conditions for

deprivation of such property for State or public interest.

Protection of the Right to Private Property

Article 26 of the Constitution states that Everyone shall have the right to his privacy and

physical integrity. This right shall include protection from searches of his person, his home,

his property and protection from seizure of property under his possession.

Ownership of Land and of Immovable Assets Built on Land

The Constitution of Ethiopia, under Article 40, makes a clear distinction between:

- Land, an inalienable common property of the nations, nationalities and peoples of

Ethiopia (the right to own rural and urban land as well as natural resourcesbelongs only to the state and the people, and

- Immovable property built on the land: Every Ethiopian shall have the full right to

the immovable property he builds on the land and to the improvements he brings

about on the land by his labour or capital.

The State owns all Ethiopian land, both rural and urban. However, the Constitution recognizes

usage rights, especially in the rural areas (the right of Ethiopian peasants to free allotment of

land and not to be evicted therefrom is guaranteed), and full ownership over developments or

improvements built on State land. This includes the right to alienate developments, to remove

them, or claim compensation for them.

Expropriation and Resettlement

Provisions

Under Article 40, the Constitution provides that without prejudice to the right to private

property, the State may expropriate private property for public use with the prior payment of

adequate compensation. The use of the words prior and adequate, in line with the

Universal Declaration of Human Rights, is of particular significance.

Under Article 44, the Constitution states that Everyone who is uprooted from the place of his

residence by virtue of programmes undertaken by the Government, or one whose livelihood

has been affected shall have the right to receive adequate monetary or other alternative

compensation, including transfer, with assistance, to another locality.

Comments

In contrast with the laws of most African countries, which provide only for sheer monetary

compensation and do not mention resettlement as an option, the Constitution of Ethiopia

provides for either compensation or resettlement. The eligibility for

compensation/resettlement is broad as it encompasses one whose livelihood has been

affected. Ethiopia can be regarded in this respect as one of very few countries in the world to

have a livelihood-oriented legal approach to compensation/resettlement, rather than the usual

asset-oriented approach. This is all the more notable since it is fully consistent with World


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Bank policies on involuntary resettlement that consider impacts on livelihoods, rather thanimpacts on assets, as the basis for eligibility to assistance for resettlement.

THE CIVIL CODE OF THE EMPIRE OF ETHIOPIA, 1960

Expropriation for Public InterestProvisions

The Civil Code of the Empire, although it refers to a general legal background (theConstitution and laws of the Empire) which is no longer relevant, contains provisions relatedwith expropriation for public interest that appear to form the only detailed applicableframework for compensation in Ethiopia.

Civil Code provisions apply to immovables under private property, which at the time whenthe Civil Code was passed did include land. However, immovables do not include land anymore (as land is now State property, by contrast with the situation prevailing during theEmpire), and immovables should therefore now be understood as including structures,plantations, improvements of various kinds made to land, etc

Articles 1460 to 1488 of the Civil Code (Expropriation) set the conditions and particulars of

expropriation. Main features are as follows:

- Expropriation can be applied only subject to a declaration of public interest, which

has to be consulted upon by the general public through a procedure of public

inquiry2;

- Immovables requiring expropriation are determined by the competent authorities;

- Owners and usufructuaries are notified of the authorities intention to expropriate,

and can object;

- The owners and usufructuaries have to inform the authorities of the compensation

amount they claim; compensation can be in kind (in the form of substitution land);

- In case the authorities disagree with this proposal, an arbitration committee fixes

the amount; the affected individual can appeal to Court if he/she disagrees with the

proposed amount;

- The amount of compensation is to be fixed according to the valuation of the

damage, assessed on the day when the Committee makes it decision, and taking

into account the increase of value arising from the construction of public works;

- Where affected people appeal to Court, the expropriation order is suspended until

the Court makes its decision and the owner may stay within one year from the

appeal; after this one year period, the expropriating authorities may take

possession subject to having deposited the amount determined by the Committee.

CommentsThe Civil Code of the Empire uses an asset-oriented approach to valuation and

compensation, which is understandable for regulations enacted in 1960. In this sense, it can be

regarded as in contradiction with the more recent Constitution, which has a livelihood-

oriented approach, as mentioned above. However, the procedural requirements of the Civil

Code (declaration of public interest, claim for compensation from the affected person,

2During which procedure any interested party may express his views or criticize the contemplated

project (Article 1465-3).


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arbitration committee, appeal to Court) can be used3 as a framework for compensation andresettlement.

Neither the Constitution nor the Civil Code provide guidelines for the calculation ofcompensation. For instance, there is no reference to market value or net present value or

any other methodology.

Indirect Expropriation

Provisions

The Civil Code provides (Article 1486) that works that are carried out within one month or

less and which do not impair the normal exploitation of the immovable, and the installation of

underground pipes or aerial lines, poles and pylons can be carried out by way of indirect

expropriation. Indirect expropriation is a simpler, expedited expropriation process, but the

Civil Code (Article 1487) explicitly prohibits its use where dwelling houses are affected. In

contrast with normal expropriation, in the case of indirect expropriation, the authorities

may carry out the works and the owners will seek compensation later (within three years).

CommentsThis latter provision, if applied, would contravene the Constitutional requirement that

compensation be prior, as well as World Bank safeguards. However, subject to

compensation being paid in advance to abide with more recent Ethiopian law and WB

policies, this process as described in the Civil Code may provide an adequate framework for

small works where a declaration of public interest is not required.

LAND TENURE REGIME IN ETHIOPIA

As mentioned above, rural and urban land belongs to the State. In this respect, the present

Constitution does not repeal the nationalization of land instituted by the Derg regime.

However, redistribution of land and forced resettlement during the Derg regime have resultedin a counter-productive feeling of insecurity of tenure that the federal and regional states now

attempt to mitigate. In an attempt to build more confidence in land tenure, the Constitution

states that The right of Ethiopian peasants to free allotment of land and not to be evicted

therefrom is guaranteed.

Several regional states (including Amhara and Tigray) are now building on the constitutional

provisions to improve security of tenure, albeit within the general framework of State

ownership of land. Leases are being introduced, that would guarantee lessees a long-term

right of usage.

Where leases are concluded between a regional administration and peasant farmers, it does

not seem that these leases are reflected in any cadastral documentation (including maps) keptat woreda or region level.

Still, the general principle remains, that in case of expropriation, land usage is not an

entitlement for monetary compensation, and only developments (such as trees, crops,

structures) give an entitlement for compensation. However, land usage is regarded in Ethiopia

3And is used indeed, for instance by the Ethiopia Electricity and Power Corporation (EEPCO) for dam-

related resettlement, like the World Bank-supported Gilgel Gibe resettlement project.


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as an entitlement for resettlement (the bona fideuser of a piece of land is entitled a right to asimilar piece of land in the resettlement site).

RURAL LAND ADMINISTRATION PROCLAMATION, 1997

Proclamation N 89/1997 Federal Rural Land Administration Proclamation establishes thefollowing:

- It confirms the Constitution principle that land is a common property of the

Nations, Nationalities and Peoples of Ethiopia, and that it cannot be subject to sale

or exchange;

- It establishes the principles of rural land administration, which is devolved to the

Regions;

- It recognizes the lawfulness of holding rights4over land;

- It confirms and details the Constitution principle that holding rights on land can be

assigned to peasants and nomads, and that these are to be secured from eviction

and displacement;

- It provides various details with respect to redistribution of land, including that thisredistribution is a Region responsibility

- It establishes the possibility for Regions to perceive fees for the use of land and

forest.

4Holding rights are defined as the right any peasant shall have to use rural land for agricultural

purposes as well as to lease and, while the right remains in effect, to bequeath it to his family members,

and includes the rights to acquire property thereon, by his labour or capital, and to sell, exchange or

bequeath same.


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WORLD BANK SAFEGUARD POLICY ON INVOLUNTARY RESETTLEMENT

OP 4.12 Involuntary Resettlement is to be complied with where involuntary resettlement

may take place as a result of the project; it includes requirements that:

- Involuntary resettlement should be avoided where feasible, or minimized,

exploring all viable alternative project designs.

- Where it is not feasible to avoid resettlement, resettlement activities should beconceived and executed as sustainable development programs, providing sufficient

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

project benefits. Displaced personsshould be meaningfully consulted and should

have opportunities to participate in planning and implementing resettlement

programs.

- 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.

According to OP 4.12, the resettlement plan or resettlement policy framework should include

measures to ensure that the displaced persons are:

- informed about their options and rights pertaining to resettlement;

- consulted on, offered choices among, and provided with technically and

economically feasibleresettlement alternatives; and

- provided prompt and effective compensation atfull replacement cost (see

Definitions in chapter 1) for losses of assets attributable directly to the project.

- If the impacts include physical relocation, the resettlement plan or resettlement

policy framework includes measures to ensure that the displaced persons are

o provided assistance (such as moving allowances) during relocation; and

o provided with residential housing, or housing sites, or, as required, agricultural

sites for which a combination of productive potential, locational advantages,

and other factors is at least equivalent to the advantages of the old site.- Where necessary to achieve the objectives of the policy, the resettlement plan or

resettlement policy framework also include measures to ensure that displaced

persons are:

o offered support after displacement, for a transition period, based on a

reasonable estimate of the time likely to be needed to restore their livelihood

and standards of living; and

o provided with development assistance in addition to compensation measures,

such as land preparation, credit facilities, training, or job opportunities.

Under its safeguard policy, the World Bank does not disburse against cash compensation and

other resettlement assistance paid in cash, or against the cost of land (including compensation

for land acquisition). However, it may finance the cost of land improvement associated with

resettlement activities.

The practical implication of this provision is that wherever land or structures have to be

compensated for, this has to be financed by the borrower.


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Principles, Objectives, and Processes Related toCompensation and Resettlement in The UWSS PRojectPRINCIPLES AND OBJECTIVES

Regulatory Framework

Any impact of the UWSS Project on land and/or people (land acquisition, resettlement,livelihood restoration of affected people) will be addressed in compliance with theConstitution of Ethiopia, with other Ethiopian regulations, and with the World Banksafeguard policy in involuntary resettlement (OP 4.12).

Minimization of Displacement

In line with the World Bank safeguard policy OP 4.125, the UWSS Project will minimizedisplacement through the following design procedures:

- Wherever inhabited dwellings may potentially be affected by a component of asub-project, the sub-project shall be redesigned (facility relocation, rerouting) toavoid any impact on such dwellings and to avoid displacement/relocation

accordingly;- The same applies to structures used for commercial activities and other businesses;- Wherever the impact on the land holding of one particular household is such that

this households may not be sustainable in the long term, even if there is no need tophysically displace this household, the sub-project shall be redesigned (facilityrelocation, rerouting) to avoid any such impact;

- For major water works like raw water treatment plants, minimization of landimpact will be factored into site and technology selection and design criteria;

- Costs associated with displacement and resettlement will be internalized into sub-project costs to allow for fair comparison of processes and sites;

- To the extent possible, Project facilities will be located on public spaces;- Pipelines, public taps, other linear infrastructures (power lines) required by the

UWSS Project will be routed inside existing right-of-ways (roads, streets, powerlines) wherever possible.

Cut-Off Date and Eligibility

In accordance with OP 4.12 and for each sub-project under the UWSP that may entail displacementimpacts, a cut-off date (see section 1.3 Definitions) will be determined, taking into account the likelyimplementation schedule of the sub-project.

In line with OP 4.12, the following three categories of affected people will be eligible to Project

resettlement assistance:

a) those who have formal legal rights to land (including customary and traditional rightsrecognized under the laws of the country);

b) those who do not have formal legal rights to land at the time of the cut-off but have aclaim to such land or assetsprovided that such claims are recognized under the lawsof Ethiopia or become recognized through a process identified in the resettlement plan

c) those who have no recognizable legal right or claim to the land they are occupying.

5Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable

alternative project designs.


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Persons covered under (a) and (b) above are provided compensation for the land they lose,and other assistance as needed. Persons covered under (c) above are provided resettlementassistance in lieu of compensation for the land they occupy, and other assistance, asnecessary, if they occupy the project area prior to the cut-off date. In practice, this means thatpeople usually considered as squatters are entitled to Project assistance as long as they arepresent on site at the cut-off date.

However, persons who encroach on the area after the cut-off date are not entitled to

compensation or any other form of resettlement assistance.


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All persons in the three categories above are provided compensation for loss of assets otherthan land (i.e. structures and crops).

Livelihood Restoration

World Bank safeguard principle is that where people are affected by land take, the aim ofresettlement should be that they should no worse-off if not better off after the resettlement

has taken place.

Where impact on land use is such that people may be affected in the sustainability of their

livelihoods, preference will be given to land-for-land solutions rather than sheer cash

compensation, in consistency with the Constitution of Ethiopia and with OP 4.12. This applies

to people who are not necessarily physically displaced but who are affected by a land loss that

affects their sustainability.

Where necessary, affected people will be monitored in the rehabilitation of their livelihood.

Compensation

Compensation principles will be as follows:- Compensation shall be paid prior to displacement;

- Compensation will be at replacement value.

By contrast with the depreciated or net value of a structure6, the replacement value (see also

Chapter 1) of structures includes the full cost of materials and labor required to reconstruct a

building of similar surface and standing. In other words, the affected person must be able to

rebuild their structure in a different location using the compensation paid for the old building.

Consultation Grievance mechanisms

Consultation is not only a requirement of WBs OP 4.12, it is simply a condition of success of

any resettlement and compensation activity, as both positive and negative experience has

amply demonstrated. Consultation mechanisms to be put in place at the very beginning of anyresettlement and compensation activities will include:

- meaningful information and consultation, which is to take place:o before the process leading to displacement is launched in each particular location

concerned by a sub-project (see Section 7 for details on consultation),o during this process,o during the monitoring period after resettlement and compensation activities are complete,

- a specific grievance registration and processing mechanism to be put in place (seeSection 8 for details on grievance management).

PROCESSES

Overview of the ESMF Process

Figure 1 presents an overview of the process that all sub-projects will undergo as per the

Environmental and Social Management Framework (presented in a separate document):

6Depreciation (or wear) coefficients are usually applied by Government valuers. This would not be

acceptable under WB policies.


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Figure 1: ESMF Process Environmental Baseline Assessment and Environmental Review

Environmental BaselineAssessment

Environmental Review

No SpecificImpact

SpecificImpact Identified

Application of the

Generic EMP

- Changes to the Sub-Project

- Development of a site-specific EMP

Environmental BaselineAssessment

Environmental Review

No SpecificImpact

No SpecificImpact

SpecificImpact Identified

Application of the

Generic EMP

- Changes to the Sub-Project

- Development of a site-specific EMP

The Environmental and Social Management Framework proposed the requirement that every

sub-project within the WSS be submitted to an Environmental Baseline Assessment (EBA).

This is the stage where, amongst others, potential land requirements will be assessed together

with land acquisition impacts, including displacement.

The EBA results in the sub-project being categorized in one of three categories (A: most

significant impacts, to C: most benign impacts). Any project classified in category A needs to

be reviewed in terms of design, siting, or routing, so as to minimize impacts. Any sub-project

that may involve the displacement of permanent housing will be classified as Category A, and

will be redesigned, resited or rerouted to avoid such displacement.

Overview of the RPF Process

The following figure presents an overview of the identification/review process proposed

under this RPF to address specifically land impacts and displacement/resettlement needs at

sub-project level.


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Figure 2: RPF Process

Environmental

Baseline Assessment(EBA - See ESMF

for details on the

Land Impact

Identified

No Land Impact

Identified

Common ESMF

Process (See ESMF

10 to 100 individuals

are affected

More than 100

individuals are

Less than 10

individuals are

- Census of affectedpeople and affected

assets- Delivery ofcompensation andother entitlementsas per this RPF

- No specificdocumentationdisclosure


assets- Development of anAbbreviatedResettlement Plan(ARP)

- Review andapproval of theARP by the WorldBank

- Disclosure of theARP through theWorld Bank

Infoshop- Delivery of


assets- Development of aResettlementAction Plan (RAP)

- Review andapproval of theRAP by the WorldBank

- Disclosure of theARP through theWorld BankInfoshop

- Delivery ofcompensation andother entitlements


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CENSUS OF AFFECTED ASSETS AND AFFECTED HOUSEHOLDS

Where land acquisition must take place, and whatever the extent of the land acquisition, acensus will be carried out to inventory affected assets and affected households. Appendix 3presents frameworks of forms to be used for this census, namely:

- Affected plot form,- Affected structure form,- Affected household form.

RESETTLEMENT ACTION PLAN

The Resettlement Action Plan will be used where more than 100 individuals are affected bythe land acquisition. The outline of a RAP is given in Appendix 4.

ABBREVIATED RESETTLEMENT PLAN

The Abbreviated Resettlement Plan will be used where 10 to 100 individuals are affected bythe land acquisition. The outline of an ARP is given in Appendix 5.

SITUATIONS WHERE LESS THAN 10 PEOPLE ARE AFFECTED

Where there are less than 10 affected people, while there is no public disclosure requirement pertaining todocumentation, all other requirements contained in this RPF still apply.

WORK PACKAGES

It is recommended that RAPs and ARPs should be grouped in a way consistent with lots of civil works thatare defined by the Project Implementation Unit. This will ensure consistency in timing and approach.


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Affected assets, affected People and entitlementsLAND

Estimates of Surfaces Potentially Required

The following table shows orders of magnitude for the potential land requirements of each ofthe water supply and sanitation systems that may be considered under the UWSS Project (thenumbering of systems refers to that in the ESMF):

Table 1: Estimated Land Requirements for Systems Considered Under the UWSS Project

System Typical Surface Needed (Estimates)

1 Spring catchment, treatment and gravity distributionsystem

Overall 5,000 sq.m.

2 River intake (run of river), treatment works andpressure distribution system

Variable from 5,000 sq.m. up to several

hectares

3 River intake (with dam), treatment works and pressure

distribution systemVariable from 5,000 sq.m. up to several

hectares

4 Well(s) with submersible pumps, treatment and

pressure distribution system5,000 sq.m.

5 Combination of the above Variable

6 Rehabilitation or expansion of existing system Variable

7 Latrines and other individual sanitation systems 10 to 50 sq.m. per system

8 Piped sewerage system and waste water treatmentworks

Variable depending on extent of system and

process

Categorization of Land Needs

Land required for the Project may fall under the following three categories:

- Land permanently required for construction and operation (example: footprint of apermanent facility like a reservoir, a well or a treatment plant);

- Land temporarily required for the duration of construction activities (example:access track that will be reclaimed after construction, or staging area that acontractor will use for the duration of construction of a given facility);

- Rights-of-Way, ie land that can still be used by its former users during operationof the facility subject to certain restrictions (example: power line corridor, pipelinecorridor).


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Land Tenure Regimes

Ownership and Usage Rights

As mentioned above, Ethiopian law does not recognize individual ownership of land. Land isowned by the state, in urban as well as in rural areas. In rural areas, land is primarily managedthrough traditional manners, and seldom do individuals hold documents ascertaining theirusage rights over it. Although there may be local variations, farmland is typically used under

individual customary rights while grazing land is held under community customary rights. Inurban areas, land usage is formalized through long term leasing agreements.

Tenancy and Sharecropping

Several types of tenancy and sharecropping systems can be practiced in Ethiopia:- Erta is a typical sharecropping arrangement whereby a farmer who has land

provides all farm inputs and land tax while another farmer with no land ploughs,

sows, and harvests. The two farmers then share the yield equally;

- Other common sharecropping arrangements include oxen belonging to one farmer

being used to plough another farmers plot, the service being eventually paid by a

certain share of the harvest.

Land can also be informally leased for one or more crop seasons to investors or tenants.

OTHER POTENTIALLY AFFECTED ASSETS

Together with land, other immovable assets could potentially be impacted by construction of

a sub-project, for instance the following:

- Buildings, whether inhabited or not,

- Other structures (wells, channels, agricultural or commercial buildings, etc),

- Trees and perennial crops,

- Annual crops.

ENTITLEMENTS

All affected assets (and related affected people, ie. owners and users of the said affected

assets) located within the footprint of a sub-project shall be inventoried. Only affected assets

identified during the census will be eligible for compensation. Appendix 3 presents

frameworks of forms to be used for this census.

The following table presents the relationship between impacts and entitlements.


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Table 2: Impact / Entitlement Matrix

Type of Impact Entitlement

Permanent loss of land heldunder long-term urban lease

Replacement by a similar piece of land (similar in location,potential and size), held under similar tenure arrangements(long-term urban lease)

OR

Cash compensation at replacement value, based on price persquare meter observed in recent transactions in the same areafor similar types of land

Permanent loss of land heldunder tenancy or sub-tenancy agreement

Replacement by a similar piece of land (similar in location,potential and size), held under similar tenure arrangements(tenancy)

No cash compensation for loss of rented land

Loss of sharecropping rights

over a piece of agriculturalland

Access to similar or better rights (at least sharecropping, or if

possible tenancy) over a piece land of similar agriculturalpotential

Right-of-Way withrestrictions (for examplerestriction on height of treesand crops making certaincrops impossible)

Depending on the regime of occupation:

- For long term urban leases, cash compensation of theloss in value resulting from the restriction (usually inthe order of 10 to 30% of the total land value of theaffected strip for right-of-ways associated with pipelineand transmission line)

- For tenancy and sub-tenancy agreements, no cashcompensation; access to a replacement piece of land inreason of the value of the restriction

Temporary land occupation Cash compensation for income lost during the period whereplot was not usable by user

Loss of uninhabitedstructure

Cash compensation at replacement value or replacement by asimilar structure

Loss of inhabited dwelling Resettlement in similar dwelling in a location with similareconomic/agricultural potential

Loss of annual crop Compensation of lost harvest at market price if the cropcould not be harvested

Loss of perennial crops andvaluable trees

Compensation of lost harvest at market price if the cropcould not be harvested

PLUS

Compensation of the cost of planting (seedling plus labour)

PLUS

Compensation of the income lost during the period of timerequired to re-establish the plantation to a similar level ofproduction (this period of time depends on the species grown,


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it is generally in the range 1 year banana or papaya trees forexample - to 5 or 6 years for mango trees to be determined

following regional/woreda practice


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Resettlement and CompensationMETHODS FOR VALUATION OF AFFECTED ASSETS

Ascertaining Eligibility

Overall, valuation will be consistent with regional rules and practice, and with the WorldBank requirement that any lost asset be valued at replacement value (see 1.3 Definitions).

Determining eligibility is not always easy in areas where informal occupants have no

documents establishing their land occupation rights, which is often the case in the poorest

areas. Delimitation of plots and related crops will be done using local committees including

affected persons themselves, their neighbors, and community leaders and elders.

Land and Rights-Of-Way

Where applicable (see Table 2 above), land will be valued based on the following principles:- Either, where compensation rates exist, check that compensation rates meet the full

replacement value requirement, and application of these rates if they do meet this requirement;

- Or, where there are no ready-to-use compensation rates, or if existing compensationrates do not meet the full replacement value requirement:o research on sale-purchase transactions recently occurred in the neighbourhood for similar

pieces of land, and record of land selling price;o application of the average transaction price.

Where there are developments on land that need to be taken into consideration (for instance

irrigation structures, terraces, wells, etc), these will also be valued at full replacement

value.

Rights-of-Way will be valued according to an estimate of the loss in value resulting from the

restriction put upon land. Methodologies for doing that are, however, complex, as it is

generally necessary to capitalize (through the use of a Net Present Value) a recurrent loss. In

general, Rights-of-Way resulting from pipelines and transaction lines are valued at 10 to 30%of the value of the land itself.

Structures

Valuation of structures will be undertaken on a case-by-case basis using rates available at

region/zone/woreda level, after a check that these rates meet the full replacement value

requirement. Wear coefficients will not be applied, in consistency with the replacement

value requirement. In the absence of established rates, valuation will take into account

reconstruction value, calculated from local contractors quotations, taking labor into

consideration.

CropsValuation of annual crops will be based on the income lost, ie. on the market value of the lost

harvest, which will be established using available rates or through a rapid survey of market

prices observed in the vicinity of the concerned location.

Valuation of perennial crops will be the sum of the following factors:


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- Loss of income during the period needed to re-establish the crop, ie. value of the harvest(based as above on market prices) for the number of harvests lost during the period of re-establishment of the crop7;

- Value of seedlings needed to re-establish the crop, and of all agricultural inputs neededto re-establish the crops as it was;

- Value of any perennial developments required to cultivate the crop, if relevant.

Valuation of timber trees will be based on the market price of timber that could be sold whenthe tree is fully grown.

Auditing

The fairness of the valuation exercise, as well as its compliance with WB requirements, willbe audited according to provisions detailed in Section 10.

RESETTLEMENT AND COMPENSATION

Resettlement Land Replacement

As mentioned above (see Project Principles, 4.1), any sub-project that is assessed aspotentially impacting inhabited dwellings or households livelihoods will be redesigned,

resited, or reroute. Therefore, the UWSS Project is not expected to cause any significant

physical resettlement, be it caused by physical displacement (impact on dwellings) or

economic displacement (impact on livelihoods).

However, as mentioned in Table 2, any impact on land will be mitigated through replacement

of the affected plot by a plot of similar potential, ie:

- Either of similar agricultural/economical characteristics and similar surface,

- Or of greater surface if agricultural/economical potential is less than that of the lost

plot.

Compensation

Most if not all impacts on land, structures and crops will therefore be mitigated through

compensation, in-cash or in-kind, following asset valuation as above described.

Experience in various countries has shown that a fraction of compensation recipients may

misuse cash compensation as they would receive an amount of money that they are not

prepared to manage. They may engage in poorly considered investments or simply dilapidate

the money. Experience in Ethiopia has shown that such behavior was rare and that the vast

majority of people wisely used compensation they received in such projects as the

Demobilization or Emergency Recovery packages recently funded by the World Bank.

However, it is advisable that an in-kind compensation option be available to affected people

who may feel themselves vulnerable to misuse of large amounts of cash.

Options for items served as part of in-kind compensation can be as follows:

- Agricultural equipment such as ploughs, hoes, etc,

- Agricultural inputs (fertilizers, seeds, seedlings, etc),

7For instance, if the re-establishment of a given crop takes 5 years up to the return of a normal

productivity, the compensation for this perennial will be based on 5 years of harvest.


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- Construction materials and equipment, such as corrugated iron sheets, cementbags, brick moulds, small tools, etc,

- School equipment (books, stationery).

In-kind items will be valued at their purchasing price and their value will be deducted from

the value of the total cash compensation due.

Compensation will be paid (or in-kind items delivered) prior to land being vacated.

Auditing

The actual delivery of entitlements will be monitored and audited according to provisions

presented in Section 10.


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Consultation and disclosureCONSULTATION ON THE RESETTLEMENT POLICY FRAMEWORK

As provided under WB policy OP 4.12, information and consultation on the UWSPResettlement Policy Framework shall be organized as follows:

- Circulation of the draft RPF for comments to all relevant institutions (e.g. EPA,Ministry of Water Resources, World Bank, and others as appropriate),

- Communication of comments to the Consultant for incorporation into a final RPF,together with WB comments,

- Presentation of the executive summary of the draft RPF to Towns concerned bythe Project.

CONSULTATION ON RAPS AND ARPS

Two steps of information and consultation are proposed to be implemented in the course of the preparationof RAPs and ARPs:

- Initial information:o This step should coincide with the cut-off date (information should not be

delivered in advance of the cut-off date to avoid encroachment of newarrivals),

o Basic information will be provided to potentially affected people on theProject, and resettlement and compensation principles as they are outlined inthis RPF,

o This step should take the form of one public meeting for each sub-project,- Consultation on draft RAP/ARP: once these are available in draft form, they

should be discussed with local authorities (e.g. Woreda and Kebelle Assemblies)and affected communities, whose comments will be incorporated into finaldocuments.

Appendix 7 presents a template that can be used during both preparation and implementation ofresettlement activities to record minutes of consultation meetings.

DISCLOSURE REQUIREMENTS

The following documents are to be disclosed, in conformance with OP 4.12:- This Resettlement Policy Framework,- Abbreviated Resettlement Plans,- Resettlement Action Plans.

These documents will be disclosed after they have been reviewed and approved by the World

Bank. Documents will be available to the public in Amharic with an executive summary inEnglish. They will be kept available at the following locations:

- The World Bank office in Addis Ababa (in paper form),- The World Bank Infoshop (in electronic form at www.worldbank.org and in paper form

at the World Bank headquarters in Washington, DC, USA),- At AAWSAs headquarters (in paper form),- At local government headquarters as appropriate.


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Grievance management MechanismsPOTENTIAL GRIEVANCES/DISPUTES

In practice, grievances and disputes that arise during the course of implementation of aresettlement and compensation program may be related to the following issues:

- Disagreement on plot boundaries, either between the affected person and theexpropriation agency or between two neighbors,

- Disputed ownership of a given asset (two or more affected people claim that theaffected asset is theirs),

- Disagreement on plot/asset valuation,- Successions, divorces, and other family issues resulting in disputed ownership or

disputed shares between inheritors or family members,- Where affected people opt for a resettlement-based option, disagreement on the

resettlement package (the location of the resettlement site does not suit them,proposed housing or resettlement plot characteristics/agricultural potential are notadequate in their view),

- Disputed ownership of businesses and business related assets (quite usually, the

owner and the operator of a business may be distinct individuals, which give riseto disputes in the event of compensation).

PROPOSED GRIEVANCE MANAGEMENT MECHANISM

Registration of Grievances

As long as one of their sub-projects entails resettlement and/or compensation, theimplementation agencies shall establish a register of resettlement/compensation relatedgrievances and disputes. The existence and conditions of access to this register (where, when,how) shall be widely disseminated within the interested area of the town as part of the

consultation undertaken for the sub-project in general.

Any grievance that may arise from the Compensation/ resettlement action plan will be filed atfirst instance to the implementation agency of the sub-project, and will be registered by theagency for further action using the above mentioned registered.

First Instance Amicable Settlement

While there are courts of law for handling grievances, local communities may often bereluctant to expose family members to courts of law, which could trigger the separation offamilies or worsen conflicts between neighbours. Also, courts of law may be viewed as slowand involving somewhat complicated procedures. People may prefer such matters to be firsthandled by a first instance mechanism, on the model of traditional dispute-resolution

mechanisms.

In such compensation and resettlement operations, it usually appears that many grievances

have roots in misunderstandings, or result from neighbor conflicts, which usually can be

solved through adequate mediation using customary rules. Most grievances can be settled

with additional explanation efforts and some mediation. This is why a first instance of dispute

handling will be set up with the aim of settling disputes amicably, in the form of a locally-

selected Mediation Committee (See proposed process in Figure 3).


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This Mediation Committee will consist of the following members:- Implementation agency;- Local NGO (chairperson),- Local representatives of Project Affected Persons (2 to 5) these should be

selected in the interested area / quarter of the interested town.

When a grievance/dispute is recorded as per above-mentioned registration procedures,mediation meetings will be organized with interested parties. Minutes of meetings will be

recorded.

The existence and procedural details related with this first instance mechanism will be widely

disseminated to the interested population as part of the consultation undertaken for the sub-

project in general.

Appeal to Court

Courts of law shall be considered as a last resort option, which in principle should only be

triggered where first instance amicable mechanisms have failed to settle the

grievance/dispute. However the Constitution allows any aggrieved person the right of access

to court of law.


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Figure 3: Grievance / Dispute Management Mechanism

Registration of therievance or dis ute

Internal treatment ofthe rievance or

Internal closure ofthe rievance or

Resort to MediationCommittee

Grievance processing byMediation Committee

One or the otherart resort to

Response of theMediation

Complainant

satisfied withoutcome

Complainant

satisfied with

outcome

YES

YES

Final closure

Final closure

NO

NO


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Vulnerable PeopleIDENTIFICATION OF VULNERABLE PEOPLE

Vulnerable people are people who by virtue of gender, ethnicity, age, physical or mentaldisability, economic disadvantage, or social status may be more adversely affected by

resettlement than others and who may be limited in their ability to claim or take advantage ofresettlement assistance and related development benefits. Vulnerable people potentiallyeligible for specific assistance under this Resettlement Policy Framework are those who areaffected by the Project land acquisition, compensation and resettlement activities.

Vulnerable people include, but are not limited to:- disabled persons, whether mentally or physically;- refugees and internally displaced people;- seriously ill people, particularly people living with HIV/AIDS and other

illnesses;- the elderly, particularly when they live alone;- households whose heads are children;- households whose heads are female and who live with limited resources;- households whose heads have no or very limited resources; and- widows and orphans.

POTENTIAL ASSISTANCE ACTIVITIES TO VULNERABLE PEOPLE

The UWSS Project will assist vulnerable people insofar as they are affected by the UWSS-related displacement and resettlement process. Such assistance may include the followingactivities:

- Identification of vulnerable people and identification of the cause and impactsof their vulnerability, preferably through an identification mechanism devisedwith, and implemented by the beneficiary community; this step is criticalbecause often vulnerable people do not participate in community meetings, andtheir disability/vulnerability may remain unknown;

- Identification of required assistance at the various stages of the process:negotiation, compensation, movin