Papua New Guinea: Town Electrification Investment Project ... · This Resettlement Action Plan is a...

Resettlement Action Plan Final Report February 2015

Papua New Guinea: Town Electrification Investment

Project-1: Ramazon Hydro Power And Transmission

Line Sub-Project

Prepared by PNG Power Ltd, Port Moresby, for the Government of Papua New Guinea and the

Asian Development Bank.

This Resettlement Action Plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

TOWN ELECTRIFICATION INVESTMENT PROGRAM (TEIP) TRANCHE 1

Land Acquisition & Resettlement Plan (LARP)

Ramazon Hydro Power and Transmission Line Sub -project

PROJECT NUMBER: LOAN 2713/2714

DOCUMENT STAGE: FINAL

FEBRUARY 2015

Report prepared by PNG Power Ltd, for the Asian Development Bank (ADB), Manila,

Philippines.

The Land Acquisition/Resettlement Plan is a document of the borrower. The views

expressed herein do not necessarily represent those of ADB’s Board of Directors,

Management, or Staff.

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Land Acquisition & Resettlement Plan (LA&RP) for Ramazon HPP ARBPNG

February 2015 Final 2

ABBREVIATIONS

ADB - Asian Development Bank AH - Affected Household AIDS` - Acquired Immunodeficiency Syndrome APs - Affected Persons ARB - Autonomous Region of Bougainville DLO - District Lands Officer DMS - Detailed Measurement Survey DOLPP - Department of Lands and Physical Planning DOW - Department of Works EA - Executing Agency EIA - Environmental Impact Assessment EMP - Environmental Management Plan GAD - Gender Aware Development GAP - Gender Action Plan GoPNG - Government of Papua New Guinea ha - hectare HH - households HIV - Human Immunodeficiency Virus IA - Implementing Agency IOL - Inventory of Loss kVA - Kilovolt Amps kV - Kilovolt LARP - Land Acquisition/Resettlement Plan LLG - Local Level Government MOA - Memorandum of Agreement MW - Mega Watt OPA - Office of Provincial Administration PLO - Provincial Lands Officer PMU - Project Management Unit PPL - PNG Power Limited PPTA - Project Preparatory Technical Assistance RC - Replacement Cost ROW - Right of Way SES - Socio-Economic Survey SPS - Safeguard Policy Statement (ADB 2009) sqm - square meters TL - Transmission Line PGK - PNG Kina USD - US Dollars as of 16/1/2014, 1 USD is equivalent to PGK2.5239.

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GLOSSARY

Meaningful Consultation

A process that (i) begins early in the PPTA and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision-making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation measures.

Affected Persons In the context of land acquisition, affected persons are those who are physically affected and/or displaced (relocation, loss of residential land, or loss of shelter) and/or economically affected (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Indigenous Peoples

Is a generic term used to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by other groups; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or region.

Physical Displacement

Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Economic Displacement

Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Gender Mainstreaming

The process of ensuring that gender concerns and women’s needs and perspectives are explicitly considered in projects and programs, and that women participate in the decision-making processes associated with development-based activities.

Country Safeguard Systems

This is the legal and institutional framework of Papua New Guinea and it consists of its national, sub national, or sectorial implementing institutions and relevant laws, regulations, rules, and procedures that pertain to the policy areas of social safeguards.

Significant Impact The loss of 10% or more of productive assets (income generation) or physical displacement and/or both.

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TABLE OF CONTENTS

A. EXECUTIVE SUMMARY ..................................................................................................... 7

B. PROJECT DESCRIPTION ................................................................................................ 10

C. SCOPE OF LAND ACQUISITION & RESETTLEMENT .................................................. 13

i. Project’s Impacts ....................................................................................................... 13

ii. Effects of Assets Lost ................................................................................................ 16

iii. Common Property Resources ................................................................................... 17

D. SOCIO ECONOMIC INFORMATION AND ASSESSMENT OF IMPACTS ..................... 17

i. Demographic Features of project Area and APs ........................................................ 17

ii. Socio-economic Data on APs .................................................................................... 17

iii. Project’s impact on APs and Vulnerability of APs ......................................................... 19

iv. Gender and Resettlement Impacts ......................................................................... 19

E. INFORMATION DISCLOSURE, CONSULTATIONS AND PARTICIPATION ................ 20

i. Project Stakeholders ................................................................................................. 20

ii. Consultation and Participation Mechanisms .............................................................. 20

iii. Activities Undertaken to Disseminate Project and Resettlement Information ............. 21

iv. Results of Consultations with Affected Peoples ..................................................... 22

F. DISCLOSURE OF THE LAND ACQUISITION/RESETTLEMENT PLAN ....................... 23

i. Planned Information Disclosure Measures during Project Implementation................. 23

G. GRIEVANCE REDRESS MECHANISM ........................................................................... 24

H. LEGAL AND POLICY FRAMEWORK .............................................................................. 25

i. National and Local Laws and ADB Policy Requirements ........................................... 25

ii. Resettlement Policy Principles for the Project ........................................................... 31

iii. Principles and Methodologies for Determining Valuations and Compensation Rates 31

iv. Replacement Cost Compensation Survey agreed by APs ..................................... 32

v. Description of Land Acquisition Process .................................................................... 32

I. ENTITLEMENTS, ASSISTANCE AND BENEFITS ......................................................... 34

i. Affected Person’s Entitlements and Eligibility ............................................................ 34

ii. Assistance to Vulnerable Groups .............................................................................. 35

iii. Opportunities for Affected Persons to Derive Appropriate Development Benefits ...... 35

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J. RELOCATION OF PHYSICAL STRUCTURES ............................................................... 36

K. INCOME RESTORATION & REHABILITATION ............................................................. 36

i. Possible Livelihood Risks .......................................................................................... 36

ii. Income Restoration and Benefit Sharing Program ..................................................... 36

iii. Special Measures to Support Vulnerable Groups ...................................................... 36

iv. Specific Gender Considerations ............................................................................. 36

v. Training Programs ..................................................................................................... 37

L. RESETTLEMENT BUDGET & FINANCING PLAN ......................................................... 38

i. Itemized Budget for Resettlement Activities ............................................................... 38

ii. Flow of Funds ............................................................................................................ 40

iii. Justification for Calculating Compensation Rates and Other Cost Estimates ............. 40

iv. Sources of Financing ............................................................................................. 40

M. INSTITUTIONAL AGREEMENTS..................................................................................... 41

i. Responsibilities and Mechanisms for Carrying out LARP .......................................... 41

ii. Institutional Capacity Building Program ..................................................................... 42

iii. Role of Civil Society Groups ...................................................................................... 42

iv. Involvement of Women’s Groups in Resettlement Planning and Management....... 42

N. IMPLEMENTATION SCHEDULE ..................................................................................... 43

O. MONITORING & REPORTING ......................................................................................... 44

P. ANNEXES .......................................................................................................................... 46

Annex I: Replacement Cost Item ...................................................................................... 46

Annex II: Project Information Bulletin ................................................................................ 46

Annex III: Consultation Notices ......................................................................................... 46

Annex IV: Meeting Minutes ............................................................................................... 46

Annex V: Grievances Mechanism Flow Chart ................................................................... 46

Annex VI: Master List ....................................................................................................... 46

Annex VII: MOA between BIGL and ABG ......................................................................... 46

Annex VIII: MOA between PPL, ABG and LO ................................................................... 46

Annex IX: Clarification letter on MOA regarding BIGL....................................................... 46

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Tables and Figures Table 1: Eligibility and Entitlements for APs ............................................................................................ 8

Table 2: Final Summary Budget for LARP ................................................................................................ 9

Table 3: Ramazon Sub project Technical Data ...................................................................................... 13

Table 4: Scope of Land Acquisition and Total No of APs ....................................................................... 14

Table 5: Vegetation Clearance Requirements ....................................................................................... 15

Table 6: Listing of APs with tree and crop losses along Transmission Lines ......................................... 15

Table 7: Land requirement, trees and vegetation removal at the Power station and other sites ........ 16

Table 8: Key Dissemination and Land Acquisition Information Activities ............................................. 21

Table 9: Comparison of GoPNG Law and ADB SPS and Gap-Filling Measures ...................................... 26

Table 10: Entitlement Matrix................................................................................................................. 34

Table 11: Estimated Land Acquisition Budget ....................................................................................... 38

Table 12: Calculation for Infrastructure, Copra and Cocoa ................................................................... 38

Table 13: Calculations for Low Value Trees and with Commercial Values ............................................ 39

Table 14: Calculation for all Food Crops ................................................................................................ 39

Table 15: Implementation Schedule...................................................................................................... 43

Table 16: Monitoring and Evaluation Indicators ................................................................................... 44

Figure 1: Map of PNG with the Autonomous Region of Bougainville ................................................... 10

Figure 2: Autonomous Region of Bougainville ...................................................................................... 11

Figure 3: Google Earth view of Ramazon HPP ....................................................................................... 12

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A. EXECUTIVE SUMMARY

1. This is the Land Acquisition and Resettlement Plan (LARP) for the Ramazon Hydro Power Sub – project (RHPP) at the Autonomous Region of Bougainville. It describes principles, entitlements, procedures, and implementation arrangements on land acquisition and resettlement for Ramazon sub-project. It follows relevant laws and regulations of the Government of Papua New Guinea (GoPNG) and the Safeguard Policy Statement (2009) of the Asian Development Bank (ADB). 2. The RHPP is one of three sub - projects selected for the First Tranche of the ADB financed Town Electrification Investment Program (TEIP). The TEIP is designed to enhance the social and economic development in urban areas and via a related project to extend the power distribution grid to rural communities in the footprint of these three sub - projects. The RHPP is located within the Ramazon Creek catchment in the Autonomous Region of Bougainville. The hydropower scheme will supply electricity to the provincial town of Buka. 3. This sub- project will involve the removal of some assets such as a house, several trade stores, assets belonging to schools such as fences and signboards and others. The single house that needs to be removed will be moved several meters from its original site. Land acquisition for the sub project’s weir site, part penstock and access road is within the 12.117 hectares of land that was agreed to be transferred by the Bougainville Island Group limited (BIGL) to the Autonomous Bougainville Government (ABG) for the RHPP. This arrangement of the transfer of the 12.117 hectares is specified in the MOU (Annex VII) signed between ABG and BIGL. For the power station site and part of penstock land acquired is 5.367 hectares which is customary owned and an MOU between the landowners (LO), PNG Power Limited (PPL) and ABG is in Annex VIII. For the transmission line corridor, 0.0860 hectares of land that will be acquired are the road easement which is the 15 metres width from both sides of the road. The land along transmission line areas are state land so there is no need of land acquisition because it’s already state land but compensation for damages will cover for the loss of improvements within the easements. 4. The RHPP investment cost (excluding land acquisition costs) is estimated at USD22, 473, 670 (PGK56 721 112.50) and involves the building of a low weir across the Ramazon river, which will then create a small head pond in the river channel. An intake will be provided in the weir which will divert the low flow that is exceeded for 90% of the time to a buried supply pipeline. The supply pipeline will terminate at a fore bay where the flow is then directed to the powerhouse via a penstock. After turbine the flow is returned to the river. The RHPP will also include the construction of a 33 kV transmission line from the hydropower plant northwards for 45km to Buka via Kokopau and 8km south to Tinputz station. 5. Based on the Census, inventory of losses (IOL) and detailed measurement survey (DMS) the number of affected persons (AP) is 2197 (1068 female). It needs to be noted that the hydropower house will be constructed on customary land that is owned by the Anakes clan. There are no APs that will lose more than 10% of their food producing or other productive customary lands. Those APs that will lose only small portions of their customary lands and have other land available to them in close proximity. They consider connection to a reliable supply of electricity outweighs any inconvenience caused by having to clear other portions of their customary land for food production purposes. 6. All AP households rely to some extent on subsistence agriculture, primarily the cultivation of sweet potato, taro, and banana and the sale of betel nut. 7. Commercial agro-industrial cropping such as copra and cocoa is very important in the Autonomous Region of Bougainville as a source of income for the overwhelming majority of

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APs. The high value cocoa and copra trees that have to be cleared are on the existing road easement. The Bonus plantation is one company that will be losing the highest numbers of cocoa trees (63) and 20 coconut palms (copra). 8. Customary land that will need to be acquired is unlikely to impact significantly on the livelihoods and incomes of APs. Despite the high numbers of APs who will lose cash crops and other trees, these trees constitute less than ten percent of their income generating assets. Also due to clan lineage membership and extended families, people can depend on each other for assistance in providing food, finances or labor if it is needed. 9. The reduced land use resultant from the land acquisition will be mitigated by PPL compensating loss of property and high value and other trees to ensure these APs are not economically worse off as a result of the Project. In addition to compensation for affected land and assets, both women and men APs are expected to benefit from Project related wage employment and access to electricity supplied to individual households for the first time by PPL.

10. APs have been consulted during pre-feasibility studies and the preparation of the LARP. PPL has and will continue to further consult with affected communities and this LARP is based on detailed land investigations. Clan leaders and other clan members, including women, have expressed their strong support for this sub project. Table 1 displays a matrix summarizing the eligibility and entitlements for APs while Table 2 presents the final Summary Budget for the LARP. This is based on the PPL undertaking detailed land investigations and valuation of assets in consultation with affected landowners. The crops and trees are assessed by PPL following the Replacement Cost Survey. The full calculation is in Table 12.

Table 1: Eligibility and Entitlements for APs

Type of

Impact

Entitled Person (s) Entitlements

Permanent acquisition of land

Customary Landowners Informal settlers (e.g. on land acquired as part of ROW) with no legalized rights.

Landowners will be provided equivalent size and quality of land, or cash compensation at replacement costs APs will be provided compensation only for their damaged crops, trees, and structures on project-affected land.

Temporary use of land.

Legal occupiers of land (primarily leaseholders) and customary landowners

Landowners will be paid rent on terms negotiated between them and the contractor.

Loss of structures

All APs irrespective of their legal status

Compensation at replacement cost and relocation assistance.

Loss of crops and trees


APs will be given notice to harvest crops and trees before site clearance or removal from required land. If APs are not able to harvest, they will be paid cash compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for a period until new crops or trees produce an equivalent income

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Loss of Livelihoods

Vulnerable households identified by social assessment.

Vulnerable households that have been identified will receive priority employment for project construction and maintenance work.

Unforeseen or unintended impacts

Concerned affected persons These will be determined as per the principles of this LARP and ADB’s Safeguard Policy.

Table 2: Final Summary Budget for LARP

Total land required 17.484 ha, including:

5.367 ha – Customary Land 12.117 ha – Alienated Land/Freehold (BIGL) 0.0860 ha- Transmission Line Kokopau to Tearoki

No of APs (Females)/HHs 2197 (Female:1068)/ 515

Estimated Value of Land to be Acquired –Assessment by Valuer General (Department of Lands & National Planning- PNG)

K596, 000 – the value for both the customary land of 5.367 ha and also included Alienated land. This includes the Power Station, other project sites and access roads on 12.117ha in Portion 334 provided by BIGL to ABG.

Infrastructure (Houses, Trade Stores, Fences, etc.)

PGK93,000.00

Copra and Cocoa PGK136,296.00

Low Value Trees PGK57,600.00

Trees of Commercial Value (Hardwood, Betelnut, etc.)

PGK51,000.00

Food Crops PGK68,770.00

Total Compensation and Other Allowances Payable

PGK406,666.00 (USD145,296.73)

11. PPL will allocate adequate resources to implement and monitor the LARP. It will ensure that adequate funds are allocated and disbursed to pay compensation for affected land and assets. The civil works will not commence before the LARP has been approved and land compensation paid in full. Compensation will be paid according to each component within the subject project area which includes the Transmission Lines Corridor sites, Weir sites, the Penstock area, Power Station and all the Access Roads to the sub-project areas. 12. PPL will submit semi-annual safeguard monitoring reports to ADB on the implementation of the LARP. It will also submit a sub-Project land acquisition and compensation completion report to ADB once land and asset compensation has been completed.

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B. PROJECT DESCRIPTION

13. ADB is providing a multi-tranche financing facility (MFF) to GoPNG to develop hydropower resources to reduce reliance on diesel generation in three small townships throughout the country as part of the Town Electrification Investment Program (TEIP). The implementing Agency is PNG Power Limited (PPL), a government owned corporation that is responsible for the generation and distribution of electricity throughout PNG. 14. Less than 10% of the PNG population has access to electricity and the grid connected power supply is largely restricted to the main urban centers. PPL is the sole energy supply entity in PNG and is required to improve energy connectivity in PNG. The objective of this TEIP is to connect that very high percentage of urban residents, specifically in Popondetta, Oro Province, Kimbe, West New Britain, and Buka, Autonomous Region of Bougainville (ABG), who are not currently connected to the grid.

15. The impact of TEIP will be enhanced social and economic development in urban areas and an ancillary project (ADB’s Improved Energy Access to Rural Communities) will extend the power distribution grid to rural communities in the areas of three sub - projects. The outcome will be improved power supply in the energy-deficient provincial centers through the replacement of high cost diesel power generation with sustainable renewable energy power generation and the provision of power to new consumers in outlying areas. 16. The TEIP involves the construction of around 3 MW (per plant) run-of-the river hydropower scheme with associated transmission lines in Oro (Divune HPP) and Bougainville (Ramazon HPP) and approximately 150 kilometers of 66kV transmission lines from the Lake Hargy Hydropower Plant in Bialla to the Kimbe the provincial capital of West New Britain. This land acquisition/resettlement plan (LARP) is the resettlement planning document for the Ramazon hydropower Sub – project (RHPP). Figure 1: Map of PNG with the Autonomous Region of Bougainville

17. Figure 1 shows a map of Papua New Guinea with the Autonomous Region of Bougainville to the east bordering with the Solomon Islands. Figure 2 below is a map of the Autonomous Region of Bougainville showing the location of the RHPP.

Figure 2: Autonomous Region of Bougainville

18. Figure 3 is a Google Earth view of the RHPP sites. The sites include the Transmission Lines

Corridor, Weir sites, Penstock, Sites, Power Station and all the other project operational sites.

RAMAZON HPP

LOCATION

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Figure 3: Google Earth view of Ramazon HPP

19. Figure 3 shows the road access to all RHPP sites and they are in the Selau-Suir District. The Transmission Line (TL) Corridor is along the North Bougainville highway from Kokopau to Tearoki Mission Station.

20. Through the ancillary project, electricity transmitted through the core transmission

network will enable PPL to distribute power to rural PNG communities using low voltage connections. Without the core transmission network being supported by the main Project, it would be not financially feasible for PPL or other investors to provide such connections.

21. The RHPP investment cost (excluding land acquisition costs) is estimated at

USD$22,473,670 million (PGK56, 721,112.50) and involves the building of a low weir across the Ramazon river, which will then create a small head pond in the river channel. An intake will be provided in the weir which will divert the low flow that is exceeded for 90% of the time to a buried supply pipeline.

22. The supply pipeline will terminate at a fore bay where the flow is then directed to the

powerhouse via a penstock. After the water goes through the turbines, the flow is returned to the river. The RHHP will also include the construction of a 33 kV transmission line from the hydropower plant northwards for 45km to Buka via Kokopau and 8km south to Tinputz station. Technical details for the project are in Table 3.

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Table 3: Ramazon Sub project Technical Data

Unit Details

River 10-20 m wide, 1970 km Terrain/river basin The population of the surrounding area is about

800 persons who live in scattered family based settlements.

Type of project Run-of-river

Weir Height 5m Penstock Length 1600m

Net head 85m

Installed capacity 2.8MW Firm annual energy 23.8GWh

Voltage 33kV

Source: PPL Study

23. The sub project follows appropriate engineering design to minimize land acquisition and resettlement impacts. The sub project will use roads used by the villages and the new access road for the intake site will be built along the pipeline. The villagers have noted that they have difficulty in transporting their cash crops to the main road for transportation to Buka town to be sold therefore, the newly constructed access roads will beneficial to the villagers. The transmission lines will follow the existing national highway corridor.

C. SCOPE OF LAND ACQUISITION & RESETTLEMENT

i. Project’s Impacts

24. The Ramazon Hydropower sub project will require the removal of several structures that include a church, one home, six trade stores, one cemetery, several fences, school sign boards and several religious symbols. APs have been identified and advised that they will be compensated for these losses. The sub project will need about 18.499 hectares of customary land and 12.117 hectares of the alienated land for sitting infrastructures totaling 30.702 hectares.

25. The sub project would also need approximately 860 square meters or 0.0860 of land for

transmission poles on a permanent basis (based on an estimated 382 transmission poles requiring 2.25 square meters for each transmission pole), PPL has decided to acquire all land within the easement, the permanent clearance of 12,112 high value cocoa and coconut trees, and approximately 8318 fruit, nut and wood trees with varying levels of economic value.

26. The land within the sub-project site is both customary-owned and alienated land. The 18.499 ha customary land at Power station site and part of the penstock is owned by Anakes clan of Does village. Weir site, access road, and penstock areas are on alienated land to which BIGL has a title. BIGL has transferred 12.117ha land to ABG through a prior transfer agreement for the RHPP. The current use of land is mostly for subsistence agriculture and growing cash crops such as cocoa and coconut. Some of the land is forests that have been either logged or cleared. The transmission line corridor will require 0.0860 hectares, and thus total land required for the project is 17.484 hectares.

27. Based on the updated Detailed Measurement Survey there are 515 affected households with

a total of 2,197 affected persons that will be marginally affected by this subproject. However, none of these affected households/persons will be severely affected defined as either being physically displaced or required to relocate from their existing normal place of residence or

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economically displaced resulting in the loss of more than 10% of their income-generation productive assets.

28. The land acquisition impacts, notably access to the hydropower generation facility and right-

of-way for the transmission lines are typical of projects of this nature but unlike projects that require the impoundment of water upstream from the hydropower generation facility. This run-of-the-river project does not necessitate the loss of land and displacement of people upstream.

29. The subproject has been assessed as Category B in terms of land acquisition/resettlement

impacts. .

30. Table 4 provides the breakdown of land requirement and number of APs for each of the sub project components. It includes all the clan names of the landowning members of each of the affected project areas.

Table 4: Scope of Land Acquisition and Total No of APs

Sub - project Sites

Estimated Land Area

(ha)

Current Land Use

Landowners (Clans/sub-clans)

Number of APs

Weir 0.5 Bush Portion 334 – Bougainville Island Group Limited (BIGL)

Care Taker - Anaka (3 families) and Anasi ( 4

families)

30APs

Fore bay 1 Bush Portion 334 - BIGL

Care Taker - Antavet (4 families) and Anasi (5

families)

40APs

Pipeline/Road Access

5.919 Bush, gardens,

cocoa blocks

Portion 334 - BIGL

Care Taker - Amra (14 families)

Anekeh (47 families) Anakarip (20 families)

Anasi (21 families) Antavat (18 families)

350 APs

Additional Access Road


cocoa blocks

Portion 334 - BIGL

Care Takers’ controlled areas

Power House 5.367 Bush Anakes (10 families) 50APs

Camp and quarry sites

0 No permanent acquisition; land to be acquired temporarily through negotiations with Landowners

Transmission Lines


cocoa blocks

Nambuin (110 families) Nakaripa (132 families)

Nakas (16 families) Karipa (26 families)

Nabeon (30 families) Antavet (2 families) Anakas (10 families) Bokaripa ( 7 families)

Msqui ( 5 families)

1,727 APs

Total 17,484 2,197 APs

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31. The land of the sub - project at the powerhouse site is customary-owned while the land at the other sites is owned by BIGL. The latter sites are used by several caretaker families mostly for subsistence agriculture and growing cash crops such as cocoa and coconut. Some of the land is secondary forests that have been either logged or cleared. The sub - project is sited within disturbed vegetation consisting of young re-growth bush/shrubs and plantations.

32. Table 5 lists the vegetation that will be cleared as meeting the requirements for the sub

project and its sites. A total area of 47.9 hectares will be cleared: 5.5 ha within the 30.7 hectares that will be acquired and 42.4 ha state land along transmission line.

33. Table 6 shows the number of APs identified along the 33kv transmission line that will be

losing mostly low value crops, .i.e. bush and soft wood plants. No significant number of cash crop trees will be lost. However, they will be compensated for the loss of valuable fruit trees or hardwood. No land will be permanently lost or restricted for the land is within the road easement. Similarly, Table 7 shows a breakdown of the land requirement and trees and vegetation for the APs at the Power station, Weir, Penstock and Access Road.

Table 5: Vegetation Clearance Requirements

Project Clearance

Component Length (m) Width (m) Area (ha)

Weir + Intake 50 30 0.2 Pipeline + Intake access 5000 8 4.0

Powerhouse 100 50 0.5 Access road 1000 8 0.8 Total HPP facilities 5.5

Transmission Line 1 45,000 8 36.0 Transmission Line 2 8,000 8 6.4 Total Transmission Line 42.4

Total HPP and TL 47.9

Source: PPL IEE Report

Table 6: Listing of APs with tree and crop losses along Transmission Lines

Name of Village

Number of Affected Persons

APs Losing land permanently

APs With Restricted Land Use

APs Losing High-Value Trees (Cocoa and Coconut)

APs losing Lower-Value Trees and Crops

SELAU /SUIR DISTRICT

BONUS VILLAGE 51 Nil Nil

39 12

MANOB 122 Nil Nil

24 98

RAMUNRATA 119 Nil Nil

30 89

SOROM 131 Nil Nil

41 90

GOHI 92 Nil Nil

26 66

NGALASUEI 113 Nil Nil

40 73

TORTE 110 Nil Nil

39 71

SANAKOVA 88 Nil Nil

19 69

HANTOA/TABUT 110 Nil Nil

20 90

TSUNDAWAN/SIARA 133 Nil Nil

34 99

SIARA 112 Nil Nil

20 92

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TON 102 Nil Nil

19 83

UMUM/BANIO 99 Nil Nil

22 77

BANIO/TSUNPETZ 55 Nil Nil

0 55

SUB TOTAL 1437 373 1064

TINPUTZ DISTRICT

TSUNPETZ 42 Nil Nil

0 63

RAWA 19 Nil Nil

5 34

DEOS 100 Nil Nil

0 100

VOGOG 52 Nil Nil

0 52

TINPUTZ P/SCH 7 Nil Nil

0 7

TINPUTZ-VUSUN 20 Nil Nil

0 30

SABA PLANTATION 20 Nil Nil

5 15

TEAROUKI 30 Nil Nil

14 16

SUB TOTAL 290 24 317

TOTAL 1,727

397 1381

Table 7: Land requirement, trees and vegetation removal at the Power station and other sites

Name of Village

Number of Affected Persons

APs Losing land permanently

APs With Restricted Land Use

APs Losing High-Value Trees (Cocoa and Coconut)

APs losing Lower-Value Trees and Crops

Numkereo 390 Nil Nil Nil 390 Deos 50 50 Nil Nil 50

TOTAL 440 50 440 Source: IOL and DMS, PPL, 2013

34. Table 7 shows the 50 APs from the Deos village that are the customary land owners of the

Powerhouse site losing 18.499 ha permanently and will be compensated accordingly for the land and assets lost. The 440 APs identified at the weir site as care takers of the BIGL freehold land and will be compensated as well for loss of their food crops and tree crops. No significant high value trees and crops will be lost.

ii. Effects of Assets Lost

35. None of the APs have food gardens which will be significantly affected by the sub-project.

The only food crops that the APs have growing on the project land are banana trees. Most of the food gardens are away from the sub-project site.

36. These growing bananas can be described as secondary food gardens and therefore they are

not likely to have adverse negative impacts upon the APs should they be lost. APs stated during socio-economic survey that they will have sufficient land available for them in nearby locations to continue their food gardens even after loss of their part of gardens due to land acquisition.

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37. The sub project is sited within disturbed vegetation consisting of young re-growth bush/shrubs and plantations. The tree clearance on non-state land for all of the site facilities and access road may involve about 5.7 ha out of total acquisition of 30.702 ha. The transmission lines will be built along right of way of existing roads that had been acquired prior to independence in 1975 and is not subject to any customary claim.

iii. Common Property Resources

38. It is not expected that common property resources (e.g. access to water or forest resources,

including aquatic resources such as freshwater fish or non-timber forest products) would be impacted upon by this sub-project. However, to mitigate any unforeseen impacts the Environmental Management Plan (EMP) will be implemented to mitigate such impacts.

D. SOCIO ECONOMIC INFORMATION AND ASSESSMENT OF IMPACTS

i. Demographic Features of project Area and APs

39. The sub project area is located in the Autonomous Region of Bougainville (ARB), which covers the mainland Bougainville and Buka Island where the provincial headquarters is located. ARB has a population of 175,160 and 48.6 percentage of the total population is female. The province has three districts and 12 LLGs.

40. The sub project is located in the North Bougainville District in two LLGs, Tinputz and Selau

Suir. According to census information from the PNG National Research Institute, the North Bougainville District has a population of 73,091 (35668 female). The North Bougainville District occupies about 3007 square kilometers, of which 1645km squared is occupied. The density of the population is 24.3 populations per km and 44.4 populations per km square of occupied land. The district has 137 elementary schools, 3 community schools, 65 primary schools, one provincial high school and three vocational schools. It has five health centers and 31 first aid posts.

41. There are 515 affected households consisting of 2197 (female: 1068) affected persons with

an average household size of 3.4 members. The largest household being 20 persons and the smallest 1 person. According to the socio-economic survey, all the APs are people from the area and they come from 19 different clans. The people mostly communicate in their local language but are also able to communicate in Tok Pisin if they are required to. For resettlement planning purposes, Tok Pisin and the local language are used simultaneously to ensure social inclusion of all APs.

42. Over 44 percent of AP household members are under the age of 18, two percent over 65

year of age and 56 percent between 18 and 65 years of age. 10 out of the 52 female heads of households reported that their husbands were from outside of the ARB and so abandoned them and moved back to their home provinces. The majority of the female heads of households reported that they husbands had been killed during the 10-year civil war in Bougainville.

ii. Socio-economic Data on APs

43. To better understand the impacts of land and asset acquisition on APs, the following socio-economic indicators were developed from the socio-economic survey:

44. Income: Majority of the APs are subsistence farmers. Several APs own cocoa and coconut

trees and earn a substantial income from the sales of these crops. Several APs own small businesses such as trade stores and fuel stations. Others earn an income through selling

A

D

B



their vegetables and betelnut either in Buka town or along the roadside markets. The highest income per annum recorded was PGK50, 000 and the lowest income was PGK2000. The loss of trees for the hydropower and TL project only constitutes to less than ten per cent of their total income generating assets.

45. Land Ownership: All customary land that is not freehold is collectively owned by individual

clans however, individual households have user rights to use collectively owned land to undertake livelihood based activities.

46. Most of the land that the Penstock will be built is collectively owned by the Anakes clan which is from the Power House to the cross over to Portion 334 – Lease Holder BIGL. The other clans which include the Antavet, Anasi and Anakarip are care takers on the subject land within Portion 334. The land for the Weir site is situated in Portion 334 which the land is under BIGL. The two care taker clans are Gunun-Karipa and Anasi clans. The land on which the access road will be constructed is also within Portion 334 but the land on which the pipeline will be constructed upon is used collectively by the following clans: Anakeh, Amra, Anakarip, Antavet and Anasi. The transmission lines are mainly on the main road from Kokopau in Selau District and all the way to Tearoki Mission Station – Tinputz - Suir District. Most of the Transmission Lines will be on the road easements which is the 15 metres from both sides of the road so for clearance purpose compensation will be involved excluding the land because the road easement is state owned.

47. Livestock: Common livestock rearing is similar as in other parts of PNG, such as rearing of

pigs and poultry mainly for consumption.

48. Occupational Structure: Most APs can be classified as subsistence farmers.

49. Access to Public Services: The population living along the TL and the Hydropower sites has access to health care amenities. Transportation in the area is quite efficient as the main roads are in good conditions and they have several Public Motor Vehicles (PMVs) that transport people from the Tinputz area to Kokopau, where they are able to travel by boat to Buka town.

50. The population living along the access road and in the actual hydropower site however, have

poor road conditions and therefore are supportive of the hydropower project as it would improve their roads and therefore their access to Buka town, health facilities, markets and schools for their children. The only village close to the RHPP site is Numkereo. There are five primary schools in the area and each village has an elementary school. The only high school located in the area is Asitavi High School. For secondary schools, students would have to travel to the provincial centre, Buka.

51. There are three vocational schools in the North Bougainville District and APs have access to

these schools. There is only one aid post located in the area and it is in Selau Village. There however are 5 health centers located in the North Bougainville area and of which the villagers have access to as they are located along the main highway. The area also has several road side markets where women often sell vegetables to the travelling public. Apart from APs from Numkerio, all have access to travel to Kokopau and then onto Buka town to sell their produces.

52. Energy Use: All households at RHPP site use wood for cooking and kerosene lanterns for

lighting. All firewood is collected from the forest near the village. All the households reported spending about K20 per week on kerosene for lighting. For APs along TL they also use firewood for fuel and about 5% use diesel powered generators for electricity. They however reported that the use of diesel generators were very costly as they spent about K20 per day for diesel.

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iii. Project’s impact on APs and Vulnerability of APs

53. There is no significant risk of landlessness, loss of home, and/or loss of major employment or income source. However, 40% of affected families are likely to lose portion of food gardens, another 20% APs losing portion of cocoa and coconut plantations. These lost portions however, will be less than 10% of their total income generating assets.

54. Most APs view the loss of land as manageable due to availability of other pieces of lands that

would allow for starting new gardens or plantations for food or income. During the socio-economic survey 100% of the interviewed landowners/APs said that they will have enough land even after the sale and they agree to sell the land to the government for the hydro project. They do not expect that their food source will be adversely affected. In terms of adverse impact on family income due to loss of small size of the food gardens, it is expected to be very insignificant. APs want cash compensation for the affected land and assets as well as power connection. It is seen as useful for family needs such as school fees and capital investment for current or future economic initiatives.

55. There is no expected negative impact on the social structure of the AP and the beneficiary

communities since land acquisition will not require displacement. There is no expected adverse impact on cultural identities or heritage of the affected people resulting from land acquisition.

iv. Gender and Resettlement Impacts

56. The ARB is one of the regions in PNG that have a matriarchal system therefore land is inherited through females. That is, a man has ownership of land through his wife or mother. However, men are still considered head of households and are more likely to dominate membership of village based organizations. There however are female chiefs in villagers and they can be relied upon to bring the female perspectives in meetings or consultations held in villages. Due to the close linkages between clans, all women are able to receive support from members of their clans and therefore, would not be disadvantaged by the loss of their high value trees or land to the hydropower and TL project.

57. Women at the project area, mostly through the female chiefs, voiced support for the

hydropower projects. PPL officers also encouraged other women to participate in the discussions by calling for voices of women to be heard during the consultations. The PPL Lands officers also used the household census as an opportunity to further inform women about the project and to answer any questions that they may have had.

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E. INFORMATION DISCLOSURE, CONSULTATIONS AND PARTICIPATION

i. Project Stakeholders

58. The primary stakeholders of this sub-project are the landowners and users of land (the Catholic Church, schools and a plantation) whose land will be acquired for the hydropower plant and the transmission lines and other land in the easement that will be subject to restricted land use.

59. Other stakeholders are the local, district, provincial and national governments, PPL which is

the primary investor, and civil society groups. The interest of the GoPNG and elected representatives is the timely implementation of this subproject without land acquisition issues. The non-transparent calculation of replacement cost for the payment of compensation to all APs has been a major issue on many investment projects in PNG. However, PPL while as a business entity expects to receive an adequate return on its investment is also mindful of the fact that when acquiring land for energy investments compensation at replacement costs must be provided to APs. PPL is very interested in following good practice and eschews some of the less than satisfactory practices evident elsewhere in PNG. Whereas the interests of the civil society groups while broadly developmental in nature are also to ensure that safeguard policy and procedures are carried out as transparently as possible and APs are not disadvantaged as a result of the land acquisition processes.

ii. Consultation and Participation Mechanisms

60. A variety of consultation and participation mechanisms have been utilized to prepare this LARP. Village based consultation meetings involving both women and men from all clans living in the village were facilitated by TIEP. Transportation was also provided to the location of the meetings by PPL for vulnerable groups such as the aged, infirmed and physically challenged people so that they were able to attend these meetings. A total of six consultation meetings were held in six different sites. These sites were the Sorom Primary School, Hantoa Primary School, Siara Primary School, Tsunpets Primary School, Namkerio Village and the Tinputz District Office.

61. Appendix six provides the master list of all APs from all the subproject sites. APs have agreed

and signed agreement documents provided by PPL that their assets (planted trees and crops) would be removed during the Ramazon HPP construction and operation.

62. The sub-project was introduced to meeting participants, the probable positive and possible

negative impacts explained, and land acquisition and other resettlement-based issues introduced. Participants at the meeting used the opportunity to discuss among themselves and with the PPL Land Officers. The Resettlement Specialist also used this opportunity to facilitate capacity building of PPL staff. The International Gender and Community Development Specialist also held community consultations with the aim of drawing out the women to voice their opinions. Prior to these consultations, a census of the people living in the villages and a listing of property owned on the project site were carried out during the period of the 20th of April to the 7th of May 2013. These activities provided ample time for the PPL team to interact with the villagers and to answer questions about the project that the villagers raised during the different consultations.

63. An important participation mechanism was to ensure consultations were undertaken at

venues and times that would not disadvantage women. Separate FDGs were facilitated with women to ensure they understood the nature of the land acquisition processes.

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D

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iii. Activities Undertaken to Disseminate Project and Resettlement Information

PPL has consulted APs and other stakeholders during project preparation utilizing the following activities: Community-based consultations Facilitation of meetings with APs Facilitation of FGD with women APs Socio-economic Survey of women, men and youths APs Inventory of Loss Detailed Measurement Survey Public Disclosure of the LARP.

Details of these key activities are included in Table 8.

Table 8: Key Dissemination and Land Acquisition Information Activities

Total Number of Participants (females in the bracket)

Period of Activities

Nature of Activities

Outcomes of Activities

515 (127 Females) 515 is the total number of affected households and therefore the number of individuals that were interviewed.

28th April to 7th May 2013 Household visits to carry out the census.

Census of APs Stakeholders in sub-project area made aware of Project and Updated Database on APs

02/05/13 to 01/07/13 On average, two days were spent per village collecting data for the census and property listing. FGD were also conducted during this time

Securing MOU from Landowning Clans

Agreement reached to alienate customary land PPL was able to conclude that there were no severely affected persons.

38 (5 females) 38 (16 females) 94 (33 females) 45 (5 females) 37 (15 females) 28 (14 females)

7th to 12th September 2013 PPL Team visited 6 locations

Disclosure of LARP for Ramazon HHP to APs

Stakeholders in sub-project area made aware of Project

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D

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iv. Results of Consultations with Affected Peoples

64. Most people consulted and surveyed at the village level are strongly supportive of the sub-project because they are very interested in seeing improved energy connectivity. Some even asked their fellow villagers to assist PPL in bringing electricity to their area and not to demand for compensation or to restrict work related to the hydropower project if they were unhappy due to reasons related to compensation. Women who spoke during the consultations expressed gratitude to PPL. However, there are important concerns that APs raised:

65. Female APs expressed concern that women should be allowed to participate equally as men

therefore, be employed by the project as well. PPL has made it quite clear that women APs along with men APs will be accorded priority in employment where possible and the contractor will also be encouraged to provide relevant training. It was explained by PPL that there are some highly specialized tasks associated with the stringing of conductor cables and only qualified technical personnel are capable of undertaking this. There are other tasks such as for clearing trees and this will involve APs.

66. Concern was raised by the people as to whether the upgrading of the access road would

affect the water sources and whether a new water sources will be made available if their current water sources were destroyed. The PPL Environmental Officer answered that the access roads were not close to the water source. She also added that any discussions regarding water supply for the villagers will be held later with the villagers by Community Development Officers.

67. Villagers were also concerned that they might have similar issues in the future as those

raised by the landowners of the Sirinumu Dam, outside Port Moresby. PPL Officers assured them that they would not have similar problems as the Sirinumu landowners unfortunately did not have similar consultations as the dam was built prior to the 1970s.

68. Some people were fearful of being electrocuted and the PPL officers assured them that PPL

would carry out safety awareness for the villages prior to the completion of the hydropower project.

69. People were also fearful of contracting HIV from the workforce that were coming into the

area, but were assured by the PPL team that mitigation measures will be carried out by PPL to ensure that people are aware of how to protect themselves.

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F. DISCLOSURE OF THE LAND ACQUISITION/RESETTLEMENT PLAN

70. A draft LARP has been disclosed to APs at each of the three section sites in consultations lasting one day at each site from Saturday 7th September to Thursday 12th September 2013 and suggestions made as a result of these consultations have been included in this LARP.

71. To assist all APs a document referred to as Disclosure of Information to Affected People on

Land Acquisition (a copy of which is included as an attachment to the LARP) was made available to all APs in Tok Pisin prior to the consultation meetings. The full LARP that will include the names of all APs and the compensation they are entitled to will be made available in English, the official language in PNG, in accessible public locations. Also each AP will be provided with a summary brochure in Tok Pisin once the ADB approves the LARP. The draft LARP has been uploaded to the PPL website (www.pngpower.com.pg). On approval by the ADB the LARP will be uploaded to ADB website (www.adb.org) as well as PPL website.

i. Planned Information Disclosure Measures during Project Implementation

72. It is not anticipated that any delay in the sub-project implementation will require a major updating of the LARP. However, it is anticipated that any delay in the implementation of the sub - project would mean that the costs of the land acquired and the assets would increase, therefore the section in the LARP that relates to the compensation of land and property owners will be updated by PPL to ensure that APs are paid fair compensation. PPL will ensure that APs are informed of any changes to the LARP as well as about detailed arrangements (dates, etc.) on compensation payment and other activities for LARP implementation. The contractor will be asked to develop and implement a communication plan to inform APs about potential employment opportunities in sub - project construction and other relevant issues.

http://www.pngpower.com.pg/

http://www.adb.org/

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G. GRIEVANCE REDRESS MECHANISM

73. PPL has established a grievance redress mechanism to receive and address Project related concerns and to resolve land related disputes that may arise during Project implementation. PPL has informed APs about the process involved in the grievance redress mechanism (Annex V). With regard to land disputes, the Land Disputes Settlement Act 2000 allows this dispute to be legally contested in a court of law. PPL also anticipates that most grievances related to compensation will be resolved through traditional mediation processes.

74. The Project in collaboration with the ARB Provincial Lands Officer, who may be assisted by

District Land Officers and elected LLG representatives, has a process in place to resolve disputes and grievances based on the accepted procedures of mediation. As required traditional clan leaders and other appointed leaders will facilitate processes to ensure a satisfactory resolution of issues at the local level. The latter are more important for non-indigenous APs.

75. In general it is anticipated that customary mediation will yield satisfactory results although

every attempt will be made to ensure that women APs and non-indigenous APs, irrespective of traditional constraints, will be included and not excluded from the mediation processes outlined here. However, it also needs to be noted that this process varies from clan to clan and PPL will ensure that irrespective of these differences women APs concerns will be fully addressed.

76. Affected People can first lodge a project-related complaint with the ward councillor and

resolve at the village level. If it cannot be resolved then it goes to PMU office at the sub - project site. The PMU project manager will consider the complaint and within one week will convey a decision to the APs. The safeguard staff as well as local government officials will assist the project manager in reviewing and addressing the complaint. The safeguard team will also facilitate communication between APs and the PMU in this process. If the APs are not satisfied with the PMU’s decision, they may then take the grievance to the CEO of PPL. The CEO has two weeks to consider the complaint and following this (s) he will either instruct the PMU to rectify the situation or dismiss the complaint.

77. If APs are not satisfied with the decision of the CEO or at any other times, they may take the grievance to the PNG judicial system.

78. If the grievance is to be taken to the PNG judicial system as per the Land Disputes

Settlement Act 2000 the following three steps will be adhered to: Local Land Court: the case is heard before the Local Court Magistrate for determination. If

the litigants are not successful, they may appeal to a higher court.

District Land Court: the case is heard before a District land Court Magistrate. If the litigants are not successful, they may appear to a higher court.

Provincial Land Court: the case is heard before the Provincial Land Court whose decision is

final.

79. It needs to be noted that if recourse to the PNG judicial system is necessary because of the failure of all other means of grievance redress and the courts at any stage find in favor of the litigants all costs associated with this form of dispute resolution will need to be paid by the Project.

80. In the event of grievances that cannot be resolved through legal redress, PPL and DLO will

hold the compensation amounts in escrow. Compensation will be paid in full upon final resolution of the case via other forums in accordance with the entitlements of the affected persons.

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H. LEGAL AND POLICY FRAMEWORK

i. National and Local Laws and ADB Policy Requirements

81. The project’s policy framework and resettlement entitlements are based on the laws and regulations of the GoPNG and the ADB’s safeguard policy. The principal PNG laws include: (i) National Constitution, (ii) the 1996 Land Act, and, (iii) the 2000 Land Disputes Settlement Act. Relevant ADB policies include the 2009 Safeguard Policy Statement (SPS) and the Gender and Development Policy and Public Communication Policy 2011.

82. GoPNG does not have any specific policies at the national, provincial or local level for relocating and resettling people. GoPNG has policies related to the acquisition of land and assets by the State for public purposes on an agreement basis or compulsory acquisition basis.

83. The PNG Constitution adopts the customary law as part of the underlying law of the country and recognizes the property rights attached to customary land. The Constitution guarantees the right of the citizens to protection from unjust deprivation of property. No land or interest in land may be acquired compulsorily by the government except as it is required for public purposes or other justifiable reasons. In the event of expropriation of land, just compensation must be made by the expropriating authority.

84. The Land Act (1996) sets out the procedures for the government to acquire land required for

public purposes. The key provisions of the Act are (i) the government may acquire land, including improvements on land, through agreement or compulsory acquisition; (ii) in case of negotiated purchase, the government and customary owners mutually agree terms and conditions; (iii) in case of compulsory acquisition, several steps are followed including: initial investigation, notice of acquisition, negotiation of compensation with the landowner, payment of compensation, notice of acquisition, and registration of land for state ownership; and (iv) compensation for compulsory purchase includes value of land and any damage.

85. The Land Act covers customary land rights, which includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary right holders”, these persons are using known as the leaders of the group who collectively have the authority to allocate use rights through their spokesperson. The other members of these groups or clans typically possesses “secondary rights” because their rights to the land may have been inherited from a primary rights holder through marriage, that is they are either married to a primary right holder or as a child or an adopted child of the primary rights holder.

86. The Land Disputes Settlement Act (2000) sets out the procedures for resolution of disputes involving customary land. The Act provides for a land disputes committee at provincial level and land courts at local, district and provincial levels. The committee can appoint land mediators. The Act promotes resolution of disputes through mediation based on the principles of traditional dispute settlement. If mediation fails, it is followed by appeal to the courts.

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87. ADB’s SPS requires ADB-assisted projects to (i) avoid involuntary resettlement impacts wherever possible; (ii) minimize such impacts by exploring alternatives; (iii) enhance, or at least restore, the living standards of APs in real terms relative to pre-project levels; and (iv) improve the living standards of the poor and other vulnerable groups. It covers both physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of involuntary land acquisition or restriction on land use, or on access to parks and protected areas.

88. The ADB’s SPS also states that where there are indigenous peoples their identity, dignity, human rights, livelihood systems, and cultural uniqueness must be safeguarded so they can receive culturally appropriate social and economic benefits. In the project area, all APs whether they are customary land owners or settlers are indigenous citizens of PNG even though the settlers have originated from other regions of PNG. Hence, they will be accorded equal compensation and also to be able to access electricity as a benefit of the project.

89. The other policy of relevance to this project is the ADB’s Policy on Gender and Development, which requires that all ADB financed projects ensure where possible and practicable special design features and strategies will be built into projects to facilitate and encourage women’s involvement and ensure tangible benefits for women.

90. ADB SPS principles and PNG laws on land acquisition and resettlement relevant to the

project are summarized in Table 9. The table also includes gap filling measures.

Table 9: Comparison of GoPNG Law and ADB SPS and Gap-Filling Measures

ADB SPS Principles on Land Acquisition/ Resettlement

PNG Laws on Land Acquisition

Gaps Measures to Comply with ADB SPS

Avoid involuntary resettlement wherever possible. Minimize involuntary resettlement by exploring project and design alternatives.

The National Constitution (NC) Section 53 protects citizens from ‘unjust deprivation of property’ by limiting the justification for compulsory acquisition by the State.

No explicit reference to the need for avoidance or minimizing resettlement impacts.

The LARP has adopted measures on avoiding/minimizing land acquisition.

Enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels. Improve the standards of living of the displaced poor and other vulnerable groups.

General principles of compensation for damage or destruction of physical and economic assets are set out in NC s.53, Land Act (LA) s.23.

PNG Laws do not prescribe measures of replacement cost or restore/improve standard of living.

The LARP includes measures on compensation at replacement cost and to restore/improve living standard of APs. The project relies on APs using their compensation payments to restore their own livelihoods because the impacts are relatively insignificant.

A

D

B






Screen the Project early on to identify past, present, and future involuntary resettlement impacts and risks.

LA sets out the process for Land Investigation Report which includes identification of affected clans/tribes and their assets.

No specific requirements for census, cut-off date, impact assessment and resettlement planning

The LARP is based on survey/census, cut-off-date, and assessment of impacts.

Carry out meaningful consultations with affected persons, host communities, and concerned non-governmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations.

NC National Goal 2(9) calls for every citizen to be able to participate, either directly or through a representative, in the consideration of any matter affecting his interests or the interests of his community.

No specific provisions for preparing and implementing RP based on meaningful consultations with APs

This LARP addresses this policy principle. Several rounds of consultations have been facilitated with APs. Their ideas on project design, especially to minimize the loss of productive assets have been taken into serious consideration by PPL.

Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

Land Disputes Settlement Act provides for measures on resolution of disputes and grievances through both local mediation as well as court process.

No requirements for a

project-specific

grievance redress

mechanism.

No specific requirement for a social preparation phase for highly complex and sensitive projects.

A grievance redress

mechanism has been

prepared by PPL and

incorporated in this LARP

to ensure APs can seek

effective redress.

The project is not highly complex and sensitive.

A

D

B






Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land-based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation at full replacement cost for assets that cannot be restored; and, (iv) additional revenues and services through benefit sharing schemes where possible.

Principles of

compensation set

out in NC s.53, LA

s.23.

No specific requirement for land-based resettlement, replacement of assets, compensation at replacement cost, and benefits sharing.

The LARP includes the provision of prompt payment of compensation at full replacement cost. PPL has worked very closely with APs and other experts to ensure the process has been transparent and fair to all APs. PPL via the associated project (Improved Energy Access for Rural Communities) will ensure all APs will be connected to the grid and APs get some waged employment opportunities.

Provide physically and displaced persons with needed assistance, including the following: (i) secure land use tenure on land identified for new garden sites and (ii) if necessary transitional support and development assistance such as land development, credit facilities, training, or employment opportunities.

PNG allow people eligible for compensation to receive their entitlements in cash.

PNG laws have no specific provisions on relocation, transitional support and civil infrastructure and services.

The LARP includes measures on relocation assistance for physically displaced household.

Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards and provide access to land and other resources that is both legal and affordable.

NC and LA include general principles of compensation for damages or losses.

PNG Laws do not prescribe measures on improvement of living standard and restoration of livelihoods.

The LARP will include measures on assistance to poor and vulnerable APs.

A

D

B






Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

NC National Goal

2(9) calls for ‘every citizen to be able to

participate, either

directly or through a

representative, in

the consideration of

any matter affecting

his interests or the

interests of his

community’.

LA sets out procedures for outright purchase or lease.

PNG Laws do not specifically require third-party verification of negotiated agreement.

The LARP has been prepared for permanent acquisition of land for project infrastructures. PPL has conducted negotiations with APs as part of this process. Contractors will negotiate with landowners for any temporary land use.

Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation of loss of non-land assets.

LA s.13-15 provides some entitlement to compensation to any people with ‘an interest’ in land over which the State exercises its power of compulsory acquisition.

PNG Laws do not provide entitlement to non-titleholders who do not have legal interest on land.

Some APs do not have legal rights to land but PPL will compensate them for the loss of trees, vegetation and crops of economic value.

Prepare a draft resettlement plan and disclose a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

NC National Goal 2(3) calls for ‘every effort to be made to achieve an equitable distribution of incomes and other benefits of development among individuals and throughout the various parts of the country’.

PNG Laws have no provision of preparing RP.

This has been complied with by PPL as per this LARP.

Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and

NC National Goal

2(9) calls for ‘every citizen to be able to

participate, either

directly or through a

representative, in

the consideration of

any matter affecting

his interests or the

interests of his

community’.

No specific requirements on disclosures.

The draft LARP has been disclosed. The final LARP will be also disclosed.

A

D

B






its updates to affected persons and other stakeholders.

Conceive and execute involuntary resettlement as part of a development project or programme. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

No equivalent provision

Gap. Land acquisition/ resettlement costs will be included and financed out of the project cost.

Pay compensation and provide other resettlement entitlements before physical or economic displacement and implement the resettlement plan under close supervision throughout project implementation.


Gap. This will be complied with by PPL as per this LARP

Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring and disclose these monitoring results.


Gap. Relevant outcomes as per the LARP will be monitored by PPL. Independent monitors will be engated (to be paid by PPL) if there are major issues or significant land acquisition impacts.

A

D

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91. There are some gaps between GoPNG laws and SPS of the ADB, and gap filling measures

have been included in the LARP. The main gaps and gap-filling measures relate to (i) carrying out meaningful consultations that also ensure vulnerable groups such as people living below the poverty line, the landless, elderly, women and children are consulted; (ii) requirement to improve or at least restore livelihoods of all displaced persons by ensuring the full replacement costs for assets lost is paid;; (iii) ensuring that displaced persons without recognizable rights to land are eligible for compensation for loss of non-land assets; and, (iv) monitoring and assessment of resettlement outcomes.

ii. Resettlement Policy Principles for the Project

92. PPL as the IA that has prepared this LARP unequivocally states that it will abide by national and local laws applicable to resettlement and the policy requirements of the ADB. Specifically PPL states that it will ensure affected landowners/APs will be paid fair compensation for land and other productive assets acquired at agreed upon replacement cost, be responsive to grievance processes and act in an accountable and transparent manner, and will ensure that women will also be entitled to benefit during the resettlement processes. The principles on land acquisition, compensation and resettlement that PPL has adopted for this subproject in the Autonomous Region of Bougainville include:

I. Land acquisition and resettlement will be minimized through careful engineering design. In

particular, there will be very little or no displacement of people.

II. APs will be consulted during the project cycle. This LARP has been updated with full participation of the APs. Effective mechanisms have been established for hearing and resolving grievances.

III. APs will receive compensation at replacement cost for their loss of assets and this should

ensure they will be as well off if not better off than if the Project did not proceed.

IV. All compensation will be fully paid to APs prior to the commencement of site clearance.

V. Absence of formal title is not a barrier to compensation and assistance and particular attention will be paid to women and other vulnerable people.

VI. Land acquisition via a PPL prepared Deed of Release is part of the Project. Costs related to this

will be included in and financed out of the Project cost as part of the overall investment made by PPL.

VII. The impacts of the hydro project and TL, including unforeseen losses and damages that may occur during construction and TL stringing will be carefully monitored and remedial steps taken as required.

iii. Principles and Methodologies for Determining Valuations and Compensation

Rates

93. PPL recognizes that affected landowners and land-users are entitled to provide an estimate of the value of their land that will be acquired and other productive assets that will be lost because of the Project requirements. This is because market conditions for the replacement of land are largely absent. PPL requested the Valuer-General to provide a valuation of land costs and other productive assets based on accepted replacement costs, which would need to include (i) adequate information about any recent land transactions; (ii) land value by types; (iii) cropping patterns and crop production; and, (iv) availability of land in the Project

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areas. Compensation payable would have been based on recent market values not the prevailing 2008 replacement cost schedule of the Valuer-General.

94. However, the Valuer-General declined to provide this service arguing it only provides such

services to public sector entities. Thus PPL decided to apply best practice principles and methodologies for determining valuations and compensation rates. Annex I provides the report of the survey.

iv. Replacement Cost Compensation Survey agreed by APs

95. The PPL lands team has undertaken a Replacement Cost Survey for compensation

assessment as ADB SPS requires compensation at replacement cost. This will ensure that landowning communities or APs around the sub - project areas are fully compensated for the damages that the sub - project has caused on them and will ensure the smooth running of the sub - project construction and operation.

96. To avoid potential land compensation disputes, PPL is working closely with the APs from

each of the sub - project areas of Ramazon HPP so that they are fully compensated based on fair and just terms and requirements of both PPL and ADB.

97. The Replacement cost of the income-generating trees and commercial crops has been

assessed and valued using the replacement cost value with the productive life span of the particular plant. See Annex I for the Replacement Cost Schedule.

v. Description of Land Acquisition Process

98. Based on the 1996 Land Act PPL in the Autonomous Region of Bougainville has applied or will apply the following procedures when acquiring portions of land from customary landholders:

99. The first step would be to survey the land. PPL hired surveyors to determine boundaries,

location, size and area of the land to be acquired in accordance with the detailed design of the Hydro project and the TL.

100. The state is then notified of why the land had been surveyed. PPL notified the Office of the

President of the Autonomous Region of Bougainville of its intention to proceed with investigations for land acquisition.

101.

102. Community consultations are carried out and information gathered is compiled into a Land

Investigation Report (LIR). PPL has prepared a LIR including ownership genealogy, rights and interests held in the land, and, estimated value of improvements to land in consultation with the landowners, other relevant government offices and the private sector (the Catholic Church, small business owners and the Bonus Plantation).

103. As part of formalities, the state, in this case, the provincial government is informed about the

outcome of the community consultations and meetings. The LIR has been submitted to the Office of the President in the Autonomous Region of Bougainville for its recommendation for the surveyed land to be alienated. The OPA will prepare a certificate of alienability confirming that there is no impediment to land acquisition.

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104. Unlike other LIRs this LIR was not sent to the Valuer-General because the latter would not make a commitment to approve valuation of assets to be acquired and as pointed out elsewhere in this LARP it was decided by PPL to undertake its own valuation and secure the assent of APs.

105. Once feedback is received from the President’s Office, paper work needed to acquire the

land begins. PPL will receive the valuation report and certificate of alienability, raises checks and prepare purchase documents. The signed documents are sent to the Office of the President in ARB for its concurrence although PPL is responsible for payment.

106. The final step towards acquiring the land is negotiating with the communities on the price of

the land that will be acquired. PPL makes the offer to the landowners. The forms are executed and money is handed over in accordance with the requirements of the landowners. GoPNG may assist with this process should landowners reject the PPL offer.

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I. ENTITLEMENTS, ASSISTANCE AND BENEFITS

i. Affected Person’s Entitlements and Eligibility

107. PPL has consulted with the affected clans and undertaken a detailed land survey and investigation of actual land ownership in coordination with the District Land Officers (DLOs). DLOs were to collect relevant information. The land investigation report prepared in conjunction with the PPL Lands Officer that were submitted to PPL on the 23rd September 2013 is the “cut-off” dates for eligibility for compensation and any rehabilitation assistance.

108. Persons that are not covered in the census, which is included in the LIR are not eligible for

compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL; or (ii) they have lawfully acquired the affected assets following completion of the census and the IOL and prior to the conduct of the detailed measurement survey (DMS). Any person or group that occupies or uses the land identified for the Project after the cut-off date will not be eligible for any compensation and/or assistance. They will be required to move from the land as per the provisions of the Land Act. ID cards for adult APs based on full census undertaken by PPL have been issued to all adult APs and will be used to identify APs when payment of compensation monies is made by PPL.

109. Landowners and land users should be able to show either documented claims to the

affected land or are able to demonstrate that this land belongs to them. Unless this is deemed satisfactory by DLO, this claim will be rejected.

110. Landowners and land users who have satisfied the DLO that they either have documented

claims to the affected land and/or other productive assets or through the DLO investigation can demonstrate that they are the rightful owners or users will receive compensation for land acquired by the Project. Those APs who cannot satisfy the DLO that they are the rightful users but are using the land anyway will receive compensation for productive assets attached to the land and other assistance as required.

111. Eligibility and entitlement for compensation and other assistance is summarized in Table 10:

Entitlement Matrix. Table 10: Entitlement Matrix

Type of Impact


Permanent acquisition of land.

Legal owner(s), including customary landowners Informal settlers (e.g. on land acquired as part of ROW) with no legalized rights

Landowners will be provided equivalent size and quality of land, or cash compensation at replacement cost. APs will be provided compensation only for their damaged crops, trees, and structures on project-affected land

Temporary use of land.

Legal owner(s) of land, including customary landowners

Landowners will be paid rent on terms negotiated between them and the contractor.

Loss of structures


Compensation at replacement cost and relocation assistance.

Loss of crops and trees


APs will be given notice to harvest crops and trees before site clearance or removal from required land. If APs are not able to harvest, they will be paid cash compensation at replacement cost. In case of perennial crops and trees, the compensation will also include loss of income for

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Type of Impact


a period until new crops or trees produce an equivalent income.

Loss of Livelihoods

Vulnerable households identified by social assessment.

Vulnerable households that have been identified will receive priority employment for project construction and maintenance work.

Unforeseen or unintended impacts

Concerned affected persons These will be determined as per the principles of this LARP and ADB’s Safeguard Policy.

112. It should be noted that the Entitlement Matrix attached as an Appendix to this LARP also

includes health and employment impacts. These impacts are inter-connected with the EMP and were included as part of the disclosure of information to APs on Land Acquisition.

ii. Assistance to Vulnerable Groups

113. This report identifies that there are a significant number of female headed households in the project area. As previous identified in this report, there are 3 female headed households in the hydropower project area, and there are 49 female headed households in the area required for the TL. One contributing factor may be due to deaths of male heads of families during the ten year Bougainville conflict. The ARB is said to have a matriarchal system of kinship, unlike some other areas of PNG, therefore there may be chances of such household are less likely to be vulnerable. However, to counter any problems that are likely to arise, the LARP requires that the successful contractor must undertake to employ at least one member from such AP household on construction-related activities on a full-time basis. Households that are considered to be vulnerable will be given first preferences over those that are not considered to be vulnerable. This will be a requirement in the bidding documents for this Contract Package.

iii. Opportunities for Affected Persons to Derive Appropriate Development Benefits

114. There are a number of quantifiable and non-quantifiable development benefits for APs. Benefits include:

115. Employment opportunities: APs engaged by the contractors could receive a stable waged

income over 18 months.

116. This could be an opportunity for APs to acquire some non-agricultural skills without having to leave the local community.

117. Equal opportunities for Women: Women will be offered the same types of employment-

based opportunities as men. They will also be able to actively participate alongside men in other land acquisition-based activities. Such involvement of women could indirectly impact upon the structures of male domination in traditional PNG society.

118. Social risks associated with HIV and AIDS and other STIs will be mitigated to a large extent

by employing as many local people on hydro project construction activities. People will also benefit from the training and awareness on protecting themselves from HIV and AIDS that PPL will carry out in the area.

119. There will be opportunities to earn money from providing a range of goods and services to

outside construction workers.

120. The long term benefit of the hydro project is that the people will have access to enhanced energy connectivity, hence their ability to have improved market links and access to a wider range of goods and services.

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J. RELOCATION OF PHYSICAL STRUCTURES

121. One house would need to be relocated about 200 meters from its current site. The owners have agreed to relocate their house. An elementary school will also need to relocate one of its classrooms; a trade store would also need to be relocated. A small business that sells fuel to vehicles would also need to relocate the building where they house their fuel. Four schools would also have to relocate their signboards and their school fences. All APs have agreed that having access to electricity is essential and therefore are willing to relocate these structures. PPL will provide relocation assistance as well as compensation at replacement cost for all APs.

K. INCOME RESTORATION & REHABILITATION

i. Possible Livelihood Risks

122. The possible livelihood risks relate to the reliance of the ARB on plantation agriculture.

Demand for copra and cocoa has reduced and this has forced producers to lower prices. This trend looks to continue for the foreseeable future. However, this possible livelihood risk is not directly related to the Project and indeed with compensation money paid for cleared cocoa trees, etc. APs will have the opportunity to diversify investment into other alternative livelihood-based activities.

ii. Income Restoration and Benefit Sharing Program

123. There are no APs requiring income restoration. At the sub - project site the APs will be

compensated fairly for the acquirement of Land and loss of tree crops, etc.. Other than that, they have other land areas to sustain their livelihood. Along TL corridor, all who lose crops and infrastructure will be compensated accordingly.

124. The following benefits will be provided by PPL to APs: (i) provision of free initial power

supply connection kit and cost of connection from residence to the service line; (ii) provision of village water supply; (iii) skills training particularly for women; and (iv) priority employment in project jobs. Female-headed households will get priority in these activities.

iii. Special Measures to Support Vulnerable Groups

125. Women APs want to ensure that their safety and security are not compromised any more than they are at present, although all women APs who participated in consultations during field-based resettlement planning argued an influx of outside labor posed more of a threat to their safety and security than exist at present from clan and non-clan males. As stated elsewhere in this LARP the EMP contains measures to mitigate such social risks.

126. One member from each female headed and vulnerable AP household will be provided

employment during construction.

iv. Specific Gender Considerations

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127. PPL recognizes that specific gender considerations apply to all energy projects it executes and manages. The measures proposed in this LARP to enhance the positive impact of the Project on women APs and other women living in the Project area are as follows:

Iterative consultations with women at all stages of the Project cycle and importantly in the

preparation of the LARP. Facilitating processes whereby women APs can lodge grievances with PPL and ultimately

ADB if they are dissatisfied with any aspects of the LARP. Ensuring that women APs are offered priority wage employment on the Project and are

afforded equal pay and on-the-job training opportunities. Addressing concerns women APs might have with safety and security issues in contexts

where they have to relocate their gardening activities. Ensuring that socio-economic data is gender disaggregated to analyze impacts at the

intra-household and inter-household level.

v. Training Programs

128. APs that will be offered priority employment on the Project will be provided with on-the-job

training by the contractor as part of her/his condition. Such training will include but not be restricted to activities such as concreting, welding, building and stringing TL cables taking into account occupational health and safety issues and the lack of real experience by most APs, especially women APs. The contractor will also be required to offer practical training in Hydro and TL maintenance to APs as PPL is considering the employment of local communities to undertake routine maintenance on PPL Hydro project assets. Such provisions will be incorporated into the bidding documents.

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L. RESETTLEMENT BUDGET & FINANCING PLAN

i. Itemized Budget for Resettlement Activities

129. The budget for land acquisition activities has been determined through costs obtained from

the replacement cost survey. The MOA between PPL and the Ramazon landowners has been finalized. It must be considered that this MOA is binding for the length of the MOA and PPL will entertain no further claims from the affected customary landowners who claim traditional riparian rights to this water body.

130. APs from all the project affected areas have signed agreements with PPL during the

consultation disclosure of the LARP and have agreed that their planted valuable assets would be removed in response to the clearance operation of the Ramazon HPP (See Annex VI).

131. As per Table 11 - 14 the total estimate land acquisition budget is PGK 1,057,696.50 or US$

419,082.31 (at mid-March 2014 exchange rates).

Table 11: Estimated Land Acquisition Budget

Total land to be acquired 30.702 ha consisting of:

18.499 ha – Customary Land 12.117 ha – Alienated Land/Freehold (BIGL) 0.0860 ha- Transmission Line Buka to Tearoki

No of APs/HHs 2197 (Female:1068)/ 515

Estimated Value of Land to be Acquired

PGK596, 000 – the value given is only for the customary land of 18.499ha for the Power Station site. Other project sites and access roads are in 12.117ha land in Portion 334 provided by BIGL.

Infrastructure (Houses, Trade Stores, Fences, etc)

PGK93,000 - See Table 12 for calculations

Copra and Cocoa PGK136,296.00- See Table 12 for calculations

Low Value Trees PGK57,600- See Table 13 for calculations

Trees of Commercial Value (Hardwood, Betel nut, etc)

PGK51,000- See Table 13 for calculations

Food Crops PGK68,770 - See Table 14 for calculations

Total Compensation and Other Allowances Payable

PGK406,666.00 (USD145,296.73)

Source: PPL Calculations (February 2014)

Table 12: Calculation for Infrastructure, Copra and Cocoa

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Infrastructure Copra & Cocoa

Type Quantity Total (m2)

Unit cost

Compensation Species

Quantity (no.) Estimated

Unit cost

Compensation

PGK PGK PGK PGK

Trade Store 1600 12.00 19,200.00 Copra 1848 24.00 44,352.00

House 5000 12.00 60,000.00 Cocoa 5108 18.00 91,944.00

Fence 6000 3.00 1,800.00 TOTAL COMPENSATION 93,000

TOTAL COMPENSATION

136,296.00

Table 13: Calculations for Low Value Trees and with Commercial Values

Low Value trees (Other Trees) Trees of Commercial Value

Species Quantity (m2)

Unit cost


Quantity (no.) Estimated

Unit cost Compensation

PGK PGK PGK PGK

Shade Trees 192,00 3.00 57,600

Wild Bananas 950 18 17,100.00

Galip 150 10 1,500.00 Nipa Palm 120 10 1,200.00 Canoe Tree 60 120 7,200.00 TOTAL COMPENSATION

57,600.00

Betel Nut 1,200 20 24,000.00

TOTAL COMPENSATION 51,000.00

Table 14: Calculation for all Food Crops

Food Crops

Species Quantity (m2)

Unit cost


Quantity per (m2)

Unit cost Compensation

PGK PGK PGK PGK

Sweet Potatoes 1,800 8.00 14,400.00 Corn 1,500 1.00 1,500.00 Pawpaw 640 2.50 1,600.00 Yam 260 3.50 910.00 Banana 1,650 20.00 33,000.00 Greens 2,300 5.00 11,500.00

Taro 980 5.00 4,900.00 Pumpkin

(Vine) 480 2.00 960.00

COMPENSATION AMOUNT 53,900.00 14, 870.00

TOTAL COMPENSATION 68,770.00

132. This budget exceeds PPL estimates by more than two-thirds because PPL based its preliminary estimates on the PPTA that was accepted by the ADB but unfortunately the PPTA Consultants at the time did not undertake a realistic valuation of higher value trees.

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ii. Flow of Funds

133. Funds for land or other productive assets to be acquired are paid directly to APs by PPL.

This will ensure considerably greater accountability and transparency than being disbursed by other means. Payment for temporary acquisition of land is made directly by the contractor to local APs based on an agreement between the two parties as to the actual amount. This will not involve the PPL or other parties unless APs are dissatisfied with the amounts offered by the contractor.

iii. Justification for Calculating Compensation Rates and Other Cost Estimates

134. Compensation rates have been based on a replacement cost survey methodology prepared by PPL. PPL decided not to use the Valuer-General’s methodology because it would have generated compensation rates unacceptable to APs. See Annex I.

iv. Sources of Financing

135. PPL is financially responsible for all resettlement activities.. PPL has devoted so far a total of six (6) person months of its staff time to this specific subproject and it is estimated that during implementation another three (3) person months will be provided by PPL specifically earmarked for LARP implementation including monitoring. PPL will allocate sufficient budget for both direct compensation costs and staff resources for implementation and monitoring.

136. The contract signed between PPL and the Project Supervision Consultant includes four

person months for the Resettlement Specialist of which four field visits totaling 20 person days has been spent in the actual Project area.

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M. INSTITUTIONAL AGREEMENTS

i. Responsibilities and Mechanisms for Carrying out LARP

137. PPL will be the Implementing Agency for this Project and it will delegate to PPL team in the ARB to oversee day-to-day activities related to land acquisition and compensation. These activities include:

Collaboration with and assistance to the District Land Officer to undertake their work to comply the Project’s policies and ADB requirements.

Provision of resources, including where necessary PPL expertise or contracted expertise, to

carry out the Inventory of Loss (IOL) and Detailed Measurement Survey (DMS). Collaboration with and assistance to the Provincial Land Officer and/or District Land Officer for

negotiations and agreements with affected landowners or land-users. Facilitation of consultations with affected communities and ensuring that all stakeholders are

informed about the Project, its policies and procedures; ensure that all requirements concerning public disclosure of the provisions for land acquisition and compensation; and, overseeing and monitoring the grievance redress process.

Reviewing and endorsing the draft LARP prior to submission to the ADB for approval, ensuring

that all matters related to land acquisition and other forms of compensation are complete and correctly reported upon.

Monitoring the process of allocation and disbursal of funds for compensation at both the

national and provincial levels and ensure that funds are available and compensation is paid in a timely manner.

Undertake all other activities including the monitoring of land acquisition and other productive

assets’ activities.

138. The ARB, including the PLO and DLO will collaborate with PPL to plan, implement, and monitor land acquisition activities. The responsibilities include:

Undertake cadastral surveys of land required permanently for the sub-project and estimate the

area of land required for temporary acquisition by the sub-project. Negotiate and sign a Memorandum of Agreement for the acquisition/use of customary land with

the clan leaders and affected landowners and/or land-users. Negotiate and sign leases for temporary use of land required for the three bridges although this

might be varied by authorizing the successful contractor to undertake this activity. Consult with and advise affected communities about the Project, the policies and procedures

when land is required and the rights and responsibilities of directly affected people and other indirectly affected peoples.

139. The ARB is responsible to ensure that all PPL funds are allocated and disbursed to pay

compensation. The payment of these funds will be made by PPL. Local Level Government and Ward Councilors will facilitate all consultations with local communities, affected people, and other stakeholders. They will be responsible for collaborating with PPL to organize and carry out these consultations.

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ii. Institutional Capacity Building Program

140. During the PPTA it was concluded by PPL in Port Moresby that its staff who would be involved in implementing this LARP require more training in the ADB’s social safeguard policies and procedures because this Project will be the first one to be implemented by PPL after the 2009 Safeguard Policy Statement became operational in January 2010. It is also considered necessary by PPL to review GoPNG policies and procedures for the acquisition of land and other forms of involuntary resettlement. Finally, while some PPL staff has limited training in survey tools and techniques that are necessary to prepare LARP it was assessed that there would still be considerable room for improvement.

141. A Lands Officer from PPL has been assigned within the PMU based in Port Moresby to

implement the LARP. This Lands Officer will be supported on a day-to-day basis by the PPL Office in Buka. It is the intention of PPL that the Lands Officer will be assigned to the Project area if and when required taking into account that all PPL Lands Officers are responsible for more than one investment program. The Project has also provided consultancy support via an International Resettlement Specialist to build capacity within PPL and local governments to prepare, implement, and monitor the LARP.

iii. Role of Civil Society Groups

142. There are several civil society groups based in the ARB. These organizations include the Oxfam, Care International and other local organizations. PPL intends to undertake the monitoring itself but if APs feel PPL is less than diligent the latter will invite one of these NGOs or if a similar NGO in the ARB to participate in or undertake subsequent monitoring.

iv. Involvement of Women’s Groups in Resettlement Planning and Management

143. PPL is very mindful of the important role women who are affected by involuntary resettlement. Based on consultations during the preparation of this LARP, the LARP provides an assurance that women will not be disadvantaged. The principal source of disadvantage would be if women APs were not be either paid equally to men APs or not paid at all. PPL is relying on ADB Safeguard and Gender policies to ensure that local groups opposed to such a provision (e.g. some clan leaders) will not be able to prevent women APs being paid equally to men APs or to enjoy other benefits such as an opportunity to provide waged labor on the Project.

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N. IMPLEMENTATION SCHEDULE

144. The implementation schedule for to (i) update the LARP; (ii) implement the LARP; and, (iii) monitoring activities is as shown in Table 15.

Table 15: Implementation Schedule

Activities Schedule

Finalization of LARP 2014

1 Confirm land requirements based on detailed technical design for Transmission Line

Completed

3 Memorandum of Agreement (MOA) with landowners on use of land for Ramazon HPP Facility

Completed

3 Follow up consultations with affected communities and agreement on land use/acquisition.

Completed through MOU & MOA

5 Request Provincial Land Office to prepare LIR including valuation of land and improvement)

Completed

6 Submission to the Office of Provincial Affairs for Certificate of Alienability to be signed by the Secretary and Affected LLGs

Completed

8 PPL prepares the LARP in consultation with landowners, including agreement on compensation rates and discloses updated LARP

Completed

9 PPL uploads the LARP to its website submits same for approval and uploading on the ADB website

March 2015

10 ADB issues no-objection to the RP March 2015 LARP Implementation

13 Payment of compensation and allowances by PPL to APs April 2015 14 PPL submits to ADB the Land Acquisition Completion Report May 2015 15 Award of civil works contract March 2015 16 Clearance of acquired land (both leased and owned) (contingent

on 100% of compensation and allowances being paid) June 2015

17 Commencement of civil works July 2015

18 Payment of adjusted compensation, as required, for unforeseen damages and losses

August 2015

Monitoring Plan

19 PPL establishes AP socio-economic baseline Established in the LARP

20 PPL submits monitoring report to ADB on implementation of the LARP

Six-monthly

21 PPL conducts post-land acquisition survey and final monitoring report

December 2016

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O. MONITORING & REPORTING

145. PPL will monitor all activities associated with land acquisition and payment of compensation to APs. The scope of monitoring includes: (i) compliance with the agreed policies and procedures for land acquisition; (ii) prompt approval, allocation and disbursement of compensation payments to APs, including if necessary supplemental compensation for additional and/or unforeseen losses; and, (iii) remedial actions, as required.

146. The monitoring will also cover the social impacts of the subproject and whether APs are able

to restore, and preferably improve, their pre-project living standards, incomes, and productive capacity. A monitoring and evaluation program utilizing the following indicators has been developed on the understanding it can be subject to change, including suggestions by APs of what they consider of more relevant to their livelihoods than are considered relevant by other stakeholders. These monitoring and evaluation indicators are listed in Table 16.

Table 16: Monitoring and Evaluation Indicators

Type of Indicator Indicator Examples of Variables Process Indicators

Staffing Consultation, Participation, and Grievance Resolution Procedures in Operation

No of PMU staff by job function Engagement of Safeguards Staff and training No of other agency officials available for tasks No of consultation and participation programs held with various stakeholders No of field visits by PMU Staff No of civil society groups participating in Project Effectiveness of compensation/assistance delivery system/grievance redress Coordination between PMU and GoPNG agencies, project supervision consultants, and civil society groups

Output Indicators

Households Structures Economic Trees and Crops Assistance to DPs

No of households affected No of households receiving agreed compensation for trees and crops No of households that have participated in income restoration No of special assistance programs to vulnerable households

Impact Indicators

Household Earning Capacity Special Assistance to Women

Employment status of households having a formal job Employment status of households being self-employed No of households receiving income enhancement skills training Number of women engaged as waged workers by the Project Type of Project-related skills women received training in Average wage of women employed on Project compared to that of men Increase in market-based incomes of women traders

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Type of Indicator Indicator Examples of Variables Other Livelihood Indicators

Increase in ownership of household assets Increased access to schooling and health services Increase in visits by GoPNG service providers

147. PPL will prepare and submit semi-annual safeguards monitoring reports to ADB as part of

project performance monitoring. PPL will also submit a sub project land acquisition completion report to ADB when compensation has been paid.

148. PPL is committed to ensuring best practices in accountability and transparency during the implementation of this Project but as stated elsewhere in this LARP if aggrieved APs are very dissatisfied with the monitoring processes and outcomes undertaken by PPL it will appoint an external monitoring agency to assuage APs concerns.

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P. ANNEXES

Annex I: Replacement Cost Item

Annex II: Project Information Bulletin

Annex III: Consultation Notices

Annex IV: Meeting Minutes

Annex V: Grievances Mechanism Flow Chart

Annex VI: Master List

Annex VII: MOA between BIGL and ABG

Annex VIII: MOA between PPL, ABG and LO

Annex IX: Clarification letter on MOA regarding BIGL

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Annex I: Replacement Cost Survey

The Valuer-General tree compensation schedule dated 2008 could not update replacement costs for other

trees and food crops so PPL decided in consultation with APs to triple the rates that the Valuer-General

values. It has been concluded that the Valuer-General in 2008 was not very robust with the valuation of

productive assets but PPL has adopted the principle and practice for this Project that if APs agree in

consultations facilitated by PPL and demonstrate their assent by signing the agreements prepared by PPL

than this will suffice. PPL has been very careful in explaining this principle to APs because it takes the

principle of fair and transparent valuation of affected productive assets very seriously.

The unit replacement cost for other productive assets is listed as per the following table:

Type of Productive Asset

Affected by Project, Per

Unit

Valuer-General’s Assessment (2008), PGK

PPL Replacement Cost

Unit, PGK

Paw Paw 2.5 7.5

Banana 18 54

Laulau 15 45

Rambutan 7 21

Soursop 15 45

Talis 18 54

Orange 15 45

Mango 18 54

Noni 18 54

Guava 15 54

Breadfruit 20 60

Pomolo 20 60

Five Star Fruit 12 36

Pau 3 9

Okari 10 30

Lime 8 24

Coconut 24 72

Cocoa 18 54

Betel Nut 18 54

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Type of Productive Asset

Affected by Project, Per

Unit

Valuer-General’s Assessment (2008), PGK

PPL Replacement Cost

Unit, PGK

Mustard 3 9

Vanilla 18 54

Limbun Tree 20 60

Galip Tree 10 30

Biabal Tree 10 30

Irima Tree 20 60

Shade Tree 20 60

Black Bean 10 30

Kumurere Tree 20 60

Pikus Tree 20 60

Bamboo 20 60

Tulip 10 30

Pandanus 20 60

Sago 30 90

Pepper Tree 10 30

Tom 18 54

Deed of Release PPL will not acquire land necessary for the Power station site from those affected households but as per the access and clearance agreement will sign a Deed of Release whereby the AH will agree (a) to accept a total payment, (b) not to restrict access to the sites by any person employed by PPL or its agent.

A

D

B



Annex II: Project Information Bulletin

TAUN ELECTRIFIKESEN INVESMEN PROGREM

Ramazon Hydro Pawa/ Transmisen Lain Projek long Ramazon Tinputz LLG go lo Kokopau

Toktok Save lo ol Pipol Husait Graun Blo Yupla Bai Project Igo Tru

Has blo displa Taun Electrifikesen Invesmen Progrem em blo helpim lo pulim o saplaim power igo lo ol

provinsel taun hap lo senisim ol disel genereta we bikpla moni save waste lo em na yusim pawa we iken

stap longpla taim lo benefitim yumi nau na ol tumbuna behain. Disla pawa supply bai helpim upla ei stap

arere long em long halivim sidaun lo peles lo sait blong yusim power long kuk, lait na wokim bisnis.

Displa Ramazon Hydro Pawa projek em pat blo TEIP we 33kv pawa lain we PNG Pawa bai pulim long mak

olsem lo Ramazon lo Tinputz LLG igo long Buka town. Displa pawa line sapos bai nap lo karim liklik pawa

mak olsem long 33kv. Ramazon Hydro em bai ol ei wokim lo concrete weir na ol pipe bai pulim lo weir go lo

pawahaus tamblo lo bris. Penstock bai ol ei connectim forebay na pawahaus antap lo graun. Pawahaus bai

ol ei wokim wei bai gat ol turbine, generate na liklik substasion.

LAND ACQUISITION/RESETTLEMENT PLAN

Disla plen blo kisim graun em bikpla samting tru bikos olgeta wan, wan haus we i gat ol meri, ol samting blo

helpim sidaun, bai affected na ol mas compensatim ol. Disla em i kam andanit lo policy blo Asian

Development Bank (ADB) na PNG Government we ol yet i putim moni lo wokim disla project. Olgeta wok

em mipla i putim aut bai yupla i ken skelim. Disla day em blo upla lo autim tingting blo upla lo disla Land

acquisition plan (we liklik hap graun blo yupla bai mipla yusim lo projek so ADB na Gavman i ken luksave

na helpim yupla sapos upla gat bel hevi.

MAK BLO NOGUT NA GUTPLA BLO WOK

Ino inap lo mipla i kisim customary or lease graun blo upla lo wokim projek tasol olsem ol liklik hap graun

mak olsem 2.25 square mita blong wan wan pawa pole. Tasol ol kakau divai i mas raus long mak olsem 20

meter lo namel blo rot i go lo arere blong rot. Displa bai wankain lo ol kokonas na banana too.

Ol narapla divai na cash crop lo 20 metre mak ismen imas kliarim long time blo pulim transmission line

tasol yupla ken still usim graun behain lo ol putim transmission line go antap lo ol pole. Lo weir site, pawa

haus, penstock hap bai ol ei clearim lo mak ol markim lo bildim ol tasol.

Disla i wankain igo lo ol lain we ol kakau na kokonas diwai blo yupla bai ol kliarim. Yupla ken planim ol

diwai tasol noken planim back coconut or kakau or narapla ol bikpla divai wer mak blo grow inap lo 2.7

meters, nogut i grou painim pawa lain na distebim or bagarapim ron blong pawa long pawa line

A

D

B



Piksa 1: disla piksa i soim hau bai ol i wokim Ramazon haidro pawa

Piksa 2: disla piksa I soim hau bai ol i pulim pawa lain

Ausua blo size blo Nogut na Gutpla blo wok

Long time blo sevei PNG Pawa I bin karim out lo namba 9 day blong April go lo namba 14 day blong May,

ol painim aut olsem 7 pla clan bai ol losim ol diwai na bus blo lo pawa haus, penstock na weir site. Lo

A

D

B



transmission line 400 pla pamali lain bai losim diwai insait lo ismen . Ol narapla diwai olsem kokonas na

kakau bai liklik namba tasol PNG Pawa bai rausim na ol narapla diwai olsem Buai, mango, muli, banana,

popo. Olgeta diwai PNG Pawa bai baim olsem compensesen bai bihainim price blong Valuer General but

PPL ei incrisim by 300 per cent na we diwai i start lo karim kaikai.

Rot blo Compensation

Long tok klia lo yumi ken lukim ol isi wei lo compensetim yupla lo yupla lusim ol gutpla samting blo yupla na

tu lo lukautim yupla long taim hevi painim yupla, mipla kamap wantaim wanpela rot long halivim yupla:

Size blo

wok

Man/Meri Wonem bai ol kisim

Klinim na

katim ol

diwai na

bush.

Papagraun na ol lain

papagraun I givim hap graun lo

ol O ol arapla lain lo display

hap

Ol bai kisim Kes moni lo moni mak blo

wan wan diwai na bush PNG Pawa I

klinim na katim.

Gaden

Bagarap

Ol man husait i lusim 10% lo

gaden blo ol na affektim

sindaun blo ol

Ol man usat ei affected bai kisim K 600 blo

wan wan man inap lo sixpla mun

Yusim blo

graun sapos

igat nid

Papagraun na husait i stap lo

company graun sapos lis

agrimen ino expire taim wok i

stat.

PNG Power Ltd andanit lo EMP blo ol bai

wokim HIV/AIDS awenes na prevensen

program na we em inap lo provaidim

liklik wok moni samting olsem.

Hevi wer

umi no lukim

Ol man / meri husait bai afekted PNG Power Ltd polisi na ADB Safeguard

Polisi

PNG Power Ltd yet bai go pas lo project na nogat narapela private company o narapla company ken.

Special Gender Actions

ADB Gender and Development Policy 2008 i tok olsem ol meri mas igat wankain compensesen wantaim ol

man na i mas kamap klia lo paper. Time compensesen peimen igo het, imas igat wankain igo long man na

meri waintaim husait project bai afektim.

Gutpla developmen pasin bai olsem ol meri mas kisim wok too na PNG Pawa bai mekim inap lo givim wok

tu lo ol meri..

HIV/AIDS awareness and prevention program wer PNG Power Ltd bai wokim ei mas lukautim meri lo

practisim safe sex.

Man, meri na pikinin mas benefit lo project na PPL bai helpim thru lo NZAID lo providim electricity wer ol

baim pinis.

Pay blo compensation

A

D

B



PNG Power Ltd. Bai tok save lo, Tinputz na Saleu, LLGs lo date, time na hap, na putim lo paper payment

blo compensation. Ol man/ meri husat i affected lo project mas save na gat resit lo kisim payment osem

proof.

Tok clear i mas go olsem PNG Power Ltd bai no nap lo clearim and sanapim transmission line inap em ei

mas paim gut ol man/ meri ei affected na o limas wanbel.

Askim

All man/meri usat ei affected lo project igat right lo outim wari lo rot blo outim wari. Olgeta. Tasol sapos igat

hevi wer ino nap lo solvim lo PNG,den ADB i tok strong lo wari mas go lo contry resident mission lo Port

Moresby na nogat ei mas go olgeta lo headquarters Manila. Man/ meri husat i affected lo project can go

thru lo ol NGOs or narapla ol civil society groups lo autim wari blo ol.

Contact Persons:

PNG Power Ltd.

Mr. Frances Mamia, Office of the Project Manager, PNG Power National Office, Corner of Wards Road and

Cordia Street, Hohola, Boroko, NCD, Port Moresby, Tel: +675 324 3533; Fax: +675 323 4974: Email:

[email protected]

Asian Development Bank

Mr. Marcelo Minc, Country Director, Asian Development Bank, Papua New Guinea Resident Mission,

Deloitte Tower, Level 13, Port Moresby, NCD, Tel: +675 3210400/0408; Fax: +675 3210407

Ms. Messim J. Ahmad, Director, Environment and Social Safeguards, Regional and Sustainable

Development Division, Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila,

Philippines, Tel: 632 632 4444; Fax: +632 636 2444; Email: [email protected]

mailto:[email protected]

A

D

B



Annex III: Consultation Notices

A

D

B



Annex IV. : Meeting Minutes

Meeting minutes for all the consultation carried out.

A

D

B



A

D

B



Annex V: Grievances Mechanism Flow Chart

Discusses problem with Ward Councilor

Person making complaint

Complaint

approved Complaint disallowed. Matter stops here No

Yes. Complaint goes to

On-site Project Manager (PM)

Complaint

approved PM arranges to rectify complaint Yes

No

PPL CEO

Complaint

approved

No

Yes

Complain

t

No

Judicial system Directs PPL and ADB to instruct

PM to rectify complaint Yes

ADB Country Director

Complain

t

No

Yes

Annex VI: Master List

A

D

B



Annex VII MOA between BIGL and ABG

A

D

B



A

D

B



Annex VIII MOA between PPL,ABG and LO

A

D

B



A

D

B



Annex IX Clarification letter on MOA regarding BIGL

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