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RESETTLEMENT FRAMEWORK DOCUMENT Resettlement Framework Document Stage : Project Number : 43255-01 October 2010

Republic of Indonesia: Urban Sanitation and Rural Infrastructure Support

to PNPM Mandiri Project

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RESETTLEMENT FRAMEWORK

Urban Sanitation and Rural Infrastructure Support to PNPM Mandiri Project

October 2010

Directorate General of Human Settlement Ministry of Public Work

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Content List

A. Introduction: Project Background and Description ………………… 7 B. Objectives, Policy Framework, and Entitlements ……………………. 10 C. Socioeconomic Information ……………………………………………... 15 D. Consultation, Participation, and Disclosure ………………………….. 16 E. Compensation, Income Restoration, and Relocation ……………….. 16 F. Grievance Redress Mechanism …………………………………………. 17 G. Institutional Arrangements and Implementation …………………….. 17 H. Budget and Financing …………………………………………………….. 18 I. Monitoring and Reporting …………………………………………………18 Annexes: Annex 1: Project’s Entitlement Matrix Annex 2: Outline of a Subproject Resettlement Plan Annex 3: Voluntary Contribution Consent Form

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ABBREVIATIONS

ADB – Asian Development Bank AP – affected person DP – displaced person CDD – community-driven development CIO – community implementation organization CSP – country strategy and program DGHS – Directorate General of Human Settlements DMS – detailed measurement survey GRS – grievance and redress committee KDP – Kecamatan Development Program RF – resettlement framework LKM – Lembaga Keswadayaan Masyarakat (community implementation organization) M&E – monitoring and evaluation MDG – millennium development goal NGO – nongovernment organization OM – operations manual O&M – operation and maintenance PIU – project implementation unit PJM Pronangkis – village medium-term development plan PNPM Mandiri – Program Nasional Pemberdayaan Masyarakat Mandiri (National Program for Community Empowerment) RIS – Rural Infrastructure Support RP – resettlement plan

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DEFINITION OF TERMS

Affected person (AP)

- means any person or persons, household, firm, private or public institution who are affected by the project both positively and negatively

Displaced person (DP)

means those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (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.

Persons with formal legal rights and persons who have no formal legal rights but their lands are recognizable under national laws are entitled for adequate and appropriate compensation either in the form of land replacement or cash compensation at full replacement cost for lost land, structures, and relocation assistance, if applicable. Persons who have neither legal rights nor recognizable claims to the land are entitled to the compensation for the loss of assets other than land and for other improvement of the land at full replacement cost.

Compensation - means payment in cash or in kind (e.g. land-for-land) to replace losses of land, housing, income and other assets caused by the Project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market value, plus any transaction costs such as administrative charges, taxes, registration and titling costs. In the absence of functions markets, a compensation structure is required that enables affected people to restore their livelihoods to level at least equivalent to those maintained at the time of dispossession, displacement, or restricted access.

Cut-off date

- This refers to the date prior to which the occupation or use of the project area makes residents/users of the same eligible to be categorized as AP, regardless of tenure status. In this Project, the cut-off date will be the final day of the census of APs and the detailed measurement survey (DMS) of DPs’ land and/or non-land assets.

Entitlement - means a range of measures comprising compensation in cash or in kind, income restoration support, transfer assistance, income substitution and relocation support which are due to affected people, depending on the nature of their losses, to restore their economic and social base.

Land acquisition - means the process whereby an DP is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation equivalent to the replacement costs of affected assets.

Rehabilitation

- means assistance provided in cash or in kind to project displaced persons due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life.

Relocation - means the physical relocation of an affected household from her/his pre-project place of residence.

Severely displaced persons

- Those who experience significant/major impacts due to (i) losses of 10% or more of their total productive land, assets and/or income sources due to the Project; and/or (ii) relocation due to insufficient remaining residential land to

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rebuild.

Vulnerable groups

- are distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement and specifically include: (i) households headed by women, elderly, or disabled, (ii) households falling under the generally accepted indicator for poverty, (iii) landless households, and (iv) ethnic minorities.

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RESETTLEMENT FRAMEWORK

A. Introduction: Project Background and Description 1. The Project forms part of the Government of Indonesia's ongoing flagship poverty reduction program—the National Program for Community Empowerment (PNPM Mandiri), which was launched in 2006 with the commitment to reduce poverty by adapting a community-driven development approach and providing direct support to poor rural and urban communities to improve essential social services and basic infrastructure. In line with the overall objective of the PNPM Mandiri Program, the expected outcome of the Project is improved access to service delivery and healthy livelihoods for the poor, near poor, and women in the project communities. The Project will have three outputs: (i) strengthened capacity for community planning and development; (ii) improved rural basic infrastructure through community development grants; and (iii) improved sanitation services through neighborhood development grants. The Project will be implemented in a geographic slice of the PNPM Mandiri Program and include about 600 rural communities in four provinces; and 1,500 poor urban neighborhoods in 43 cities. 2. The Project will have three outputs: (i) strengthened capacity for community planning and development; (ii) improved rural basic infrastructure; and (iii) improved sanitation services. 3. Output 1: Strengthened capacity for community planning and development. The Project will support and strengthen community participation, empowerment and capacity to prioritize, design, implement, manage and monitor community-based projects. Social mobilization and community facilitation are cross-cutting activities that will occur at all stages of the community empowerment process and are keys for ensuring pro-poor investments and sustainability. Following the PNPM Mandiri guidelines, the Project will deploy community facilitators1 (CF) to assist communities to carry out poverty mapping, identify problems and needs, evaluate community implementation capacity, develop efficient planning and decision-making processes; establish and run community implementing organizations (CIOs); formulate development plans and specific investment plans to be financed by block grants; prepare technical designs and implement civil works, and formulate and implement O&M plans to ensure sustainability of completed facilities. CFs will be organized in teams, each consisting of facilitators for (i) social development, (ii) technical matters, and (iii) overall project management. At least 30% of the CFs will be women. 4. To assist communities in rural areas in the design and implementation of investments plans to upgrade basic infrastructure financed by block grants provided under output 2, CFs will be recruited from the existing CF-teams currently engaged under the ongoing RIS-PNPM projects. The EA will identify experienced and well performing CFs, who will be engaged under the Project. 5. To assist communities in urban neighborhoods to establish and improve sanitation facilities financed by block grants under output 3, the EA will engage new CFs,

1 CFs will be contracted and financed by the Government.

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who have good experience in participatory planning methods, community mobilization and community empowerment, and have experience in community-based sanitation services. CFs for social development will be trained on approaches to foster Sanitation and Hygiene Behavioral Changes; CFs for technical matters will be specifically trained on community-based sanitation technologies to prepare appropriate technical designs and guide communities and contractors to carry out civil works. To enable CFs to resourcefully support communities in identifying, designing and implementing suitable community-based sanitation projects and developing inclusive sanitation plans, promoting community led total sanitation and addressing hygiene and health issues, the EA will conduct specific "sanitation trainings" for CFs prior to their assignment. Training programs for CFs will be developed in close consultation with other sanitation related programs implemented by the Government, other development partners and NGOs.2 In addition, the EA will establish a system to provide continuous guidance and advice to CFs through qualified NGOs and district administration services under MPW and MOH. As successfully implemented under the ongoing RIS-PNPM projects, each participating community will work with the project through a community implementation organization (CIO), which can be either an existing village/neighborhood organization or a new project organization.3 6. Output 2: Improved rural basic infrastructure through community development grants. Under Output 2, block grants will be provided to about 600 villages to upgrade basic infrastructure that were identified by the village community. Each village is planned to receive two cycles of block grants. Soon after the completion of the first cycle of block grants, the EA, assisted by the DPIUs and PPIUs, will carry out a village performance evaluation. Only villages that are evaluated as good performers will continue to receive the second cycle of block grants. Poor performing villages will be excluded. The EA, if necessary, will select other new villages to receive block grants. Consistent with the PNPM Mandiri guidelines and the ongoing RIS-PNPM projects, the menu of investment opportunities for communities will be open except for a short negative list of activities prohibited by the Government or ADB policies.4 7. The Project will provide block grants to about 200 villages, which have received one cycle of block grants under a PNPM project financed by the government own resources. The remaining 400 villages will be poor villages that have not received any PNPM block grants. These 600 poor villages are located at the 215 project kecamatans in Jambi, Lampung, Riau and South Sumatra, previously covered under the RIS PNPM II. According to the PNPM Mandiri Guidelines, villages selected for support under the PNPM are entitled to receive up to three cycles of block grants to implement their infrastructure investment plans. Thus the Project will complete the three investment cycles in 200 villages.

2 Suitable and experienced NGOs and individual consultants to assist the EA in designing and implementing sanitation related training programs will be selected during the project preparation phase. 3 Overall CIO membership will be at least 40% women, and the CIO representative committee, which will consist of five members, will include at least two women. The CIO shall be legalized by the village/neighborhood head and registered with the kecamatan head, which is a prerequisite for opening a CIO bank account. Decisions made by the CIO will be validated in village/neighborhood meetings with at least 60% household attendance. 4 Activities that can be supported include (i) building and repairing basic infrastructure such as small roads, bridges, irrigation infrastructure, clean water supply systems and sanitation; (ii) equipping or repairing social infrastructure such as school buildings, clinics, and providing supplies to school children and health clinics; and (iii) social and economic activities. The negative list will be detailed in the project administration manual.

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8. Following the same approach established under the ongoing RIS -PNPM projects, block grants will be transferred directly to community bank accounts managed by the CIOs. The CIO will take the lead in developing investment plans, with assistance from community facilitators and the DPIUs. After the village investment plans, which include the final technical designs and cost estimates, have been approved at a village assembly and submitted to the DPIU for approval; a contract will be executed between the CIO and the DPIU and the first installment of the block grant will be released. Civil works will be undertaken by communities with technical guidance from the community facilitators, DPIUs, and project management consultants5. The proposed Project will utilize the same funds flow mechanism for block grants as in the ongoing RIS-PNPM projects. The first installment of 40% of the approved block grant will be transferred directly into the CIO’s bank account as an advance payment. The remaining funds, subject to certification of progress by the DPIUs, will be disbursed to communities in two additional installments. 9. Output 3: Improved sanitation services through neighborhood development grants. Block grants will be provided to urban neighborhoods to specifically improve community-driven sanitation services. About 1,500 communities in 43 cities in the provinces of Central Java, DI Yogyakarta, East Java, South Sulawesi and North Sulawesi, will benefit from block grants to finance (i) construction of public bathing, toilets and washing facilities, (ii) improvement of communal sewerage systems and waste treatment,6 and (iii) improvement of disposal/reuse systems.7 10. In order to ensure that community sanitation facilities established under the Project will be integrated in city development plans and linked to city sewerages systems, only neighborhoods located in cities with an approved City Sanitation Strategy (CSS)8 will participate in the Project. By 2011, it is expected that local governments in the project provinces will have endorsed CSS for 43 cities. To assure support from the respective city administrations, local governments will provide a firm letter of confirmation documenting their readiness to participate in the Project and specific contributions to support community-lead sanitation development. 11. Given the limited community awareness on the importance of sanitation and hygiene, and the lack of understanding on community-driven sanitation technologies, the Project will allow sufficient time for the community empowerment process. CFs will assist local communities to develop their own action plans for sustainable sanitation services and improved hygiene and heath environments. The process will start with the establishment of a long list of communities showing interest to participate. So-called Road Shows, providing information on community-driven sanitation, general health and hygiene aspects, and the Project concept and criteria for participation, will be organized in each city, to inform and register interested neighborhoods. Based on specific criteria for the selection9, neighborhoods will be chosen to participate in the Project. CFs will 5 When goods or services cannot be provided by a community, such as tasks requiring specialized expertise, this should be confirmed in a community meeting and procurement should be conducted through the CIO. 6 The treatment system could include communal septic tanks, bio-digesters, buffle reactors, anaerobic filters, ponds, 7 This could include river disposal, disposal for use in fishery, sludge drying, use as fertilizer, and sucking by sludge trucks. 8 The CSS is a strategic planning process for sanitation sector development, which is endorsed by the local parliament. CSSs include indicative programs/projects that are/will be included in the annual budget plans. 9 Neighborhoods will be selected based on (i) poverty incidence ranking using the latest available data, (ii) assurance that all community members will be integrated in the decision making process to design and implement sanitation facilities, (iii) CIO will be established and accountability and governance mechanism will be in place, and (iv) willingness to improve overall hygiene and health environments in the neighborhood.

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help community members to (i) identify issues and needs related to health, hygiene and sanitation, (ii) formulate inclusive and sustainable sanitation plans with specific investment plans to be financed by block grants, (iii) prepare technical designs, (iv) implement civil works, and (v) formulate and implement O&M plans to ensure sustainability of completed facilities.

12. The implementation mechanism will be similar to output 2 and follow good practices established under RIS-PNPM projects. Each participating neighborhood will work through a CIO; block grants will be transferred directly to community bank accounts; procurement process and fund flow mechanisms will be in line with procedures described under output 2 and established under RIS PNPM projects. 13. Due to the CDD nature of the process, whereby the project activities will directly benefit communities and involve community decision-making and management, safeguards will be built into the community decision-making process to deal with issues as they arise. The Project will require limited land acquisition for these very small community facilities and will not involve any resettlement of people, relocation of houses, or significant impact upon productive land or other productive assets. Based on the existing PNPM subproject activities the land required for the subproject activities has usually been less than 500m2 for each subproject, affecting less than 5 households each. The minimal land acquisition will be mainly through voluntary contribution by project beneficiaries. However, in which sub project requiring the resettlement plan has not been yet identified so that the resettlement plans can not be prepared before project appraisal. And therefore, the resettlement framework (RF) needs to be prepared and it will be embedded in the Project’s operational manuals.

B. Objectives, Policy Framework, and Entitlements

14. Purpose of the Resettlement Framework. This RF is to be used as a guideline for any land acquisition activity under the Project, including land acquisition assessment and preparation and implementation of resettlement plans (RPs) for land acquisition and possible voluntary donation for the small community-level infrastructure subprojects. In line with the Project’s CDD approach, the provision of small amounts of land for any new infrastructure would be based mainly on voluntary rather than involuntary basis. Land for new infrastructure will be provided either in the form of donation from community members or with land exchange or compensation at replacement cost depending on the results of discussion and dialogue within the communities themselves. 15. Policy Framework. This RF reflects ADB’s policies on Involuntary Resettlement Safeguards (SPS, 2009) and Indonesian Government laws (including Act no. 38/2004 on Road, Act No. 41/2009 on Agricultural Land for Sustainable Food Protection) and regulations (Presidential Regulation No. 36/2005 on Land Acquisition for the Development in the Public Interest amended by Presidential Regulation No. 65/2006, Head of National Land Agency Regulation No. 3/2007) and guidelines for the implementation of the Project. A significant gap is found between ADB Policy on IR and the regulations of the Indonesian government. The main gap lies on the basic provisions on the calculation of the compensation for land and structures, the parties with rights to such compensation, assistance for the relocation, the rehabilitation of income to ensure that APs will not fall into poverty and their living condition will not be worse off, gender, and the attention for the vulnerable groups. The gap in the ADB-financed projects is

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bridged with the drafting of Project Resettlement Policy that is agreed by the Executing Agency and ADB and which serves as a reference for land acquisition and resettlement. Therefore, the provisions and principles adopted in this framework and subsequent plans prepared will supersede the provisions of the relevant Government decrees and regulations currently in force in Indonesia wherever a gap exists. 16. Basic Principles include the following:

a. Acquisition of land and other assets shall be avoided and minimized as

much as possible by exploring project and design alternatives and appropriate social, economic, operational, and engineering solutions that have the least impact on populations in the project area.

b. All displaced persons shall be equally eligible for compensation and rehabilitation assistance, irrespective of tenure status, social or economic standing, and any such factors that may discriminate against achieving the objectives outlined above. Neither lack of legal rights to the assets lost or adversely affected, or tenure status or social or economic status will bar the DPs from entitlements to such compensation and rehabilitation measures.

c. as for those who have no recognizable rights or claims to the land that they are occupying, (e.g. informal dwellers/squatters), are entitled to compensation for loss of non-land assets and various options of resettlement assistance..

d. APs shall be fully consulted and inform them of their entitlement and resettlement options. Ensure the APs participation in planning, implementation, and monitoring and evaluation of resettlements programs. Pay particular attention to the needs of the vulnerable groups and ensure their participation in consultations. DPs that are physically displaced from housing and/or lose 10% or more of productive land, assets or income are considered to be severely affected, although, no such impact is expected from this project. However, in the event that there might be a significant impact upon any DPs, in addition to compensation for lost assets at replacement cost, the Project will provide appropriate rehabilitation measures to assist these DPs to restore their pre-project living standards, incomes, and productive capacity.

e. The livelihoods of all displaced persons are to be improved or at least restore 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 can not be restored, and iv) additional revenues and services through benefit sharing schemes where possible.

f. If the project communities or individuals decide to make voluntary contribution of the affected land and non-land assets for the project activities, this shall be acceptable only if the following safeguards are in place:

(i) Full consultations with the land owners and any non-titled

displaced persons on site selection.

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(ii) Ensuring that voluntary donations do not severely affect the living standards of the DPs, and are linked directly to benefits for the DPs, with community sanctioned measures to replace any losses that are agreed to through verbal and written record by the DPs.

(iii) No any coercion to those who are opted for the contribution (iv) Any voluntary “donation” will be confirmed through verbal and

written record and verified by an independent third party such as a designated non government organization or legal authority.

(v) Having adequate grievance redress mechanism in place. (vi) These safeguards must be built into the community decision

making process and included in the project implementation guideline to be followed by project consultants and facilitators and shared with the project community members.

g. The standard living of the displaced poor and other vulnerable groups, including women shall be improved, to at least national minimum standard. In rural areas, provide them with access to land and resources, and in urban areas provide them with appropriate income sources and access to adequate housing.

h. There shall be an effective grievance redress mechanisms to receive and facilitate resolution of the affected persons’ concern during the preparation and implementation of RPs.

i. Details of the RPs, including documentation of the consultation process shall be disclosed to APs and any interested groups through public meetings and in the form of summary RPs or information booklets and leaflets in a language that can be understood by the APs and in an accessible place (such as project and commune offices).

j. Compensation payment and other resettlement entitlements are to be provided before physical or economic displacement.

k. Appropriate monitoring and evaluation (M&E) shall be carried out to assess resettlement objectives and their impacts on the standard of living of the displaced persons. The M& E, mechanisms shall be identified and set in place as part of the resettlement management system. Disclose monitoring reports.

17. Entitlement Matrix. The entitlement matrix in Annex 1 summarizes the main types of losses and the corresponding nature and scope of entitlement.

18. Ethnic Minorities, Vulnerable Groups, and Gender. A social and gender analysis will be carried out in each project village to identify special needs of indigenous peoples (IPs) and other disadvantaged groups such as landless, poor, women-headed households, elderly and disabled that should be addressed during implementation. 19. Eligibility Criteria and Requirements. An AP is defined as any person or persons, household, firm, private or public institution that are affected by the project both positively and negatively. While displaced persons are those who are physically displaced and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihood) 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 areas10. Displaced persons in a project area can be categorized in three types; 10 Safeguard Requirement 2: Involuntary Resettlement, footnote 1

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i) persons with formal legal rights to land lost in its entirety on in part ii) persons who lost the land they occupy in its entirety or in part who have no legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all three types of displaced persons. Using the CDD approach, the project communities will decide on the type of activity to be implemented in their area. The project DPs are most likely the members of the project’s community and could also be part of the project beneficiaries. However, assurance for project compliance to ADB Policy has to be in place. Only project beneficiaries will be eligible to voluntarily contribute their land in exchange for direct project benefits.

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20. The Project’s resettlement framework requires that: (i) no the AP categorized as poor households11 or vulnerable households as

identified through social assessment are allowed to donate their land or other economic assets for the project activity;

(ii) no the AP categorized as poor or vulnerable households will be negatively affected directly or indirectly by any project activity;

(iii) when the required land is voluntarily donated or acquired through other agreement as decided by the community, detailed social and economic background and project impact to the APs must be carefully recorded and reported;

(iv) all requirements for complying with ADB’s Involuntary Resettlement policy as stated in para. 13 (e) above must be followed and recorded;

(v) all the required information must be provided in the short RP required as part of the subproject document prepared by the community.

(vi) the prepared RPs must be endorsed to ADB by the CIOs, village apparatus and the PIU/Executing Agency (EA), approved by ADB, disclosed to the APs and uploaded on ADB’s website before it can be implemented; and

(vii) prior to endorsement to ADB, the village proposal RP will be reviewed by special committee accountable to ADB and the Government.

21. Procedure for Formulation of Short RP. The communities will select and identify the development activity needed in their area through a series of community meetings, discussions and poverty mapping assisted by community facilitators. All village infrastructure proposals will be developed through this process. The community will screen and prioritize the proposals by taking into account numerous factors including project impacts on land acquisition and resettlement as provided in the project’s guidelines. The outline for subproject RPs is provided in Annex 2. 22. If, after making all effort to avoid and minimize land acquisition and resettlement, land acquisition is still required for the selected project activity, the project facilitators, supervised by the project social safeguard consultant, will work closely with the community to formulate a RP for the subproject using the following procedures:

(i) Identify the land acquisition requirements for the project activity and its socio-economic impacts.

(ii) Conduct stakeholder consultations to look for ways of avoiding or minimizing adverse impact and to identify AP’s needs and preferences.

(iii) Undertake census of APs, inventory and detailed measurement survey (DMS) of affected assets of all DPs.

(iv) Obtain data on the socioeconomic conditions of the APs, to ensure that the AP’s living standard will not be severely affected by the acquired assets due to the project activity.

(v) Undertake the replacement cost survey of the affected assets to inform the DPs on the value of the concerned assets.

(vi) Provide information on village proposal activities and its resettlement impacts to all APs in a form and language that is understandable by them.

11 Poor households are those whose income levels are below the respective provincial poverty line of the

current year as recorded by the Statistical Office (BPS) and identified by community members as poor households in their own community.

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(vii) After the LAR impacts are identified and replacement costs are calculated, the DPs will have choices of (i) full compensation (monetary or non-monetary; if the latter the compensation needs to be again determined through facilitation process); (ii) voluntary donation of the affected assets (the poor and otherwise vulnerable DPs will not eligible for this option); or (iii) refuse participation in a transaction. If the DPs refuse to participate in a transaction, the village proposal will be dropped and replaced with other proposal.

(viii) If the DPs choose monetary compensation the cost will come from the allocated village grant and the decisions regarding compensation has to be determined through community facilitation process, assisted by the village facilitator. If either party does not agree with the compensation mechanism, the village proposal is rejected and replaced with others.

(ix) Any “voluntary” donation of affected assets must be confirmed with written record by DPs and verified by an assigned independent third party such as a local nongovernment organization (NGO) or legal authority.12

(x) The established CIO, with assistance from the community facilitators, will prepare RP with all information as above and include an implementation schedule, procedures for grievance redress and M&E. Simple and specific formats of RP will be provided by the PIUs to the CIOs to be completed.

(xi) Disclose the RP to the project’s APs. (xii) Submit the RP to independent resettlement committee and ADB for

approval prior to implementation. The RP will be uploaded on ADB’s website.

(xiii) The information contained in a resettlement plan may be tentative until a census of affected persons has been completed following the completion of engineering designs. The entitlement matrix of the resettlement plan may be updated to reflect the relevant changes but the standards set in the original entitlement matrix can not be lowered when the resettlement plan is revised.

(xiv) Complete implementation of the approved RP for a village proposal by the CIOs before commencement of any civil works. The community facilitators will ensure satisfactory implementation of the RP prior to commencement of any physical work. Special trainings will be provided to the community facilitators during the recruitment period to enhance their skills and knowledge of ADB safeguards requirements and procedures.

C. Socioeconomic Information 23. Surveys for RP Preparation. The DMS of lost assets will collect data on the affected assets from 100% of AP following detailed design of the subproject. The data will include

(i) total and affected areas of land by type of land assets; (ii) total and affected structures by type of structure (main or secondary); (iii) legal status of affected land and structure assets, duration of tenure and

ownerships; (iv) quantity and type of affected crops and trees;

12 Example of written documentation/ consent form provided in the Annex 3.

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(v) quantity of other losses (e.g., sharecropping/dwelling access, other productive assets);

(vi) quantity/area of affected common property and community/public assets by type;

(vii) summary data on AP households by ethnicity, gender of head of household, household size, primary and secondary sources of household income vis a vis the poverty line; and

(viii) AP knowledge of the subproject and preferences for compensation, donation or assets exchange based on the community discussion.

24. The procedure of RP formulation and survey activities will be embedded in project activities and guided with project manuals prepared by the project consultants. The CIOs established in each project village will conduct the survey and prepare the RP with assistance from the community facilitators. D. Consultation, Participation, and Disclosure 25. Following the Project’s CDD approach, any activity requiring new land in the project sites will be prepared and implemented in close consultation with all stakeholders. This would be in line with the consultation procedures as required by ADB policy. It will involve focus group discussions and community meetings especially with the APs. The CIOs will be responsible for disseminating information on the resettlement activities of the subproject to the APs through verbal communication or written materials that are accessible and in language that is easily understood by the APs. The RF will be included in the project implementation guidelines to be used by community facilitators and community members. 26. Copies of the RPs will be available in the local government and CIO’s offices and will be posted on ADB’s and the Project’s websites. E. Compensation, Income Restoration, and Relocation

27. Compensation. Adequate and appropriate replacement land and structure or cash compensation at full replacement cost for lost land and structures, and relocation assistance, if any will be provided to those persons described in the above para. 19 (i) and (ii) prior to their relocation. For those persons described in para. 19 (iii), they will be compensated for the loss of assets other than land, and for other improvements to the land at full replacement cost. This entitlement is provided only if they occupied the land or structures in the project area prior to the cut off date for eligibility for resettlement assistance.13 28. The rate of compensation for acquired land, structures, and other assets will be calculated at full replacement cost. The calculation of full replacement cost will refer to local market price and standards of valuation, without deductions for taxes and depreciation, recovery of salvageable materials, registration cost and other concerned transaction cost. Where market condition is absent, information on the recent land transactions can be obtained from the displaced persons. 29. The physically displaced persons are entitled to i) relocation assistance and proper resettlement site and condition with the access to employment and production 13 Safeguard Requirement 2: Involuntary Resettlement, para. 7 and 8

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opportunities, civic infrastructure, and community services ii) transitional support and development assistance. The economically displaced persons are entitled to the compensation for the loss of income or livelihood sources at full replacement cost. There are also entitled to get the assistance such as credit facilities, training, and employment opportunities. F. Grievance Redress Mechanism

30. Any AP will have the right to file complaints and/or queries on any aspects of land acquisition and resettlement activities of the subprojects. The complaint and grievance procedure would follow the existing PNPM project which is a step by step procedure. At the village level, complaint from any APs can be filed to the CIO’s members and local government for an immediate solution when possible. If the problem cannot be solved, the CIO’s members and local government staff will facilitate the APs to submit their complaints to the Project’s grievance and redress committee (GRC) at district level and to provincial/national level if not satisfied. Community facilitators will record the complaint and report to the PIUs. The Project will dedicate a staff at district, provincial and national levels in charge of handling and following up on APs’ complaints. 31. The members of the GRC will involve the representatives of vulnerable APs (i.e., women APs, poor APs and minority groups) and other APs and relevant government officials with functional and legal authority. The committee will review grievances involving all resettlement benefits or issues, except for disputes related to ownership. Grievances will be redressed within 2 to 4 weeks from the date of lodging the complaints at the district level and within 8 weeks at the provincial/national levels. If no consensus can be reached, the dispute resolution will follow Presidential Decree No. 36/2005, chapter 17.14 32. The APs could also file their complaints on the PNPM Mandiri website that is already available through the internet connection or by written complaint submission to the PNPM Mandiri administrator. 33. Complaint and grievance procedures and guideline will be included in the project implementation guideline to be disseminated by the community facilitators to the affected communities during the facilitation process and project implementation. G. Institutional Arrangements and Implementation 34. For compliance to ADB’s social safeguard policies in the project activities, the Project’s EA, the Directorate General of Human Settlements of the Ministry of Public Works, will have the overall coordination and responsibility for the resettlement activities under the Project. The existing PNPM Mandiri Oversight Body will provide policy directives, guidance, monitoring, and managerial oversight. The Oversight Body is chaired by the Coordinating Minister for Social Welfare and comprises the Ministers for the National Development Planning Agency (BAPPENAS), Ministry of Finance, Ministry of Home Affairs, MPW, and Ministry of Social Development. Provincial and district project coordination teams also have multi-agency steering committees formed by the

14 The DP could raise objection/complaint to the district head/mayor or governor in accordance to their

respective scopes and authority to change or validate decision made related to the land acquisition/ resettlement in project activities.

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respective governors and district heads (bupati) or mayors. These regional committees have coordination and monitoring functions similar to those of the Oversight Body. Chaired by the head of the regional planning and development agency, they comprise heads of the relevant sector agencies and representatives from local organizations. These PNPM Mandiri steering committees at the district level will review the RPs prepared under the Project and monitor their implementation. 35. The implementation of ADB’s Involuntary Resettlement Policy (SPS, 2009) and resettlement activities in the subprojects will be supported by social safeguard management consultants at national and provincial levels and facilitators at village levels. Community facilitators will be recruited by provincial PIUs. Social safeguards and social development/gender specialists will be included in all regional consulting teams. The social development/gender specialists will be employed, among other things, to ensure appropriate implementation of the RF and the subproject RPs. They will supervise community facilitators and the communities in implementing the project’s activities, as well as the implementation of the RF when required. 36. CIOs will be established with the assistance and support of community facilitators in every village of the project sites. The CIOs will receive support from community facilitators to increase their social awareness and technical capacity for implementing the project activities. With assistance from community facilitators, the CIO will be involved and responsible for both the preparation and implementation of the RPs. 37. ADB project officer for the Project will coordinate with the resident resettlement specialist to provide support to ADB’s project team to review and approve subproject RPs. H. Budget and Financing 38. The budget will cover compensation costs, relocation assistance if any rehabilitation measures as required, monitoring, administration cost, and contingency. Cost of RP will be part of the community contributions. The government will ensure timely preparation and implementation of the resettlement plan in order to avoid the delay of the resettlement activities. I. Monitoring and Evaluation 39. The project M&E mechanism for land and social safeguard issues will be included in the internal M&E report prepared by the EA. One section of the regular internal monitoring report will be dedicated to report and discuss issues related to social safeguards in project activities. 40. The district level PNPM Mandiri multi-stakeholders steering committees will serve as the external monitoring agencies of the Project. The external monitoring activities specifically focusing on this issue will be conducted twice a year during the project implementation period. Monitoring reports will be uploaded on ADB’s website. 41. The main objective of external monitoring is to provide an independent periodic review and assessment of i) achievement of resettlement objectives; ii) changes in income, living standards and livelihoods of the displaced persons caused by the land acquisition; iii) effectiveness of entitlements; and iv) if any significant land acquisition and

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resettlement issues are identified, a corrective action plan will be prepared to address such issues. 42. The main activities to be carried out by the external monitoring during resettlement implementation are the following i) review existing baseline data and gather additional socio-economic information, as necessary, on sample affected households ii) monitor preparation and implementation of the Resettlement Plan iii) monitor and verified the voluntary contribution iv) monitor the complaints raised by the affected persons and it’s resolution iv) provide recommendation for the improvement of resettlement implementation v) monitor the compliance of the use of the fund for resettlement.

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Annex 1: Project’s Entitlement Matrix

Entitled Person Type & Level of Impact

Compensation Policy Note

Permanently Affected Land Owners of the land with legal title or recognizable claims

Loss of ownership of the land

• Compensation at replacement cost rate based on current market value which is derived from recent land sales in the area, no deduction for taxes and administrative cost, OR

• Land replacement/exchange with similar condition • No compensation if owner is eligible and opts to voluntarily donate

the land in exchange for direct subproject benefits • Severely displaced persons (DPs) that lose 10% or more of

productive land, assets or income, in addition to compensation for lost assets at replacement cost will be provided with appropriate rehabilitation measures to assist these DPs to restore their pre-project living standards, incomes, and productive capacity

User of the land Loss of use of the land

• Compensation at replacement cost for the loss of the assets and other improvement to the land.

• No compensation if land user is eligible and opts to voluntarily give up his/her use, but will benefit directly from the subproject activity

• Severely DPs that lose 10% or more of productive land, assets or income, will be provided with appropriate rehabilitation measures to assist these DPs to restore their pre-project living standards, incomes, and productive capacity

In line with the community-driven development (CDD) approach employed in the project, the selected compensation mechanism will depend on the result of community discussions

Annual/Perennial Crops Owners of the crops

Loss of the crops • Compensation at replacement cost which is equivalent to age, type, and productive value OR

• No compensation if owner is eligible and opts to voluntarily donate the affected crops in exchange for direct subproject benefits OR

• Other special arrangement as agreed by the affected people • Severely DPs that lose 10% or more of productive assets or

income will be provided with appropriate rehabilitation measures to assist these DPs to restore their pre-project living standards, incomes, and productive capacity

In line with the CDD approach, the compensation mechanism will depend on the result of community discussions

Structures/Buildings Owners of Affected structures • Cash compensation at replacement cost which is equivalent to

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structures/buildings current market value of structures and labor without depreciation • No compensation of the owner is eligible and opts to voluntary

donate the affected structures in exchange for direct subproject benefits OR

• Other special arrangement as agreed by the affected people • Severely DPs that lose 10% or more of productive assets will be

provided with appropriate rehabilitation measures to assist these APs to restore their pre-project living standards, incomes, and productive capacity

Communal Land Community members

Loss of communal use of land

• Communal land replacement with similar condition/purpose OR • No communal land replacement if the community agrees and opts

to provide the land for the sub project activity

In line with the CDD approach, the compensation mechanism will depend on the result of community discussions

Vulnerable Groups Poor and vulnerable Groups

Higher risk of hardship due to the project impact

• Special assistance will be provided in consultation with the households to ensure that their specific needs are met

The need of vulnerable group will be assessed during the RP preparation

Temporary Impact Land owners/users Impact during

construction • Contractors will be responsible for providing the compensation in

cash or in kind at replacement cost for the damaged assets during construction. Restoration of land, if any, will be done immediately after use.

•

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Annex 2: Outline of a Subproject Resettlement Plan

Topic Contents

Executive Summary • Concise statement of project scope, key survey findings, entitlements and recommended actions

Project Description • A general description of the project; project components that

result in land acquisition, involuntary resettlement, or both and identify the project area

• The alternatives considered to avoid or minimize resettlement. Table with quantified data may be included.

• Rationale for the final decision. Scope of Land Acquisition and Resettlement

• The project’s potential impacts. It includes maps of the areas or zone of impact of project components or activities

• The scope of land acquisition (including maps) and the reasons why it is necessary for the project

• Summary the key effects of the assets acquired and displaced persons

• Details of any common property resources that will be acquired Socioeconomic Information and Profile

• Definition, identification and enumeration of the people and communities to be affected

• Description on the likely impacts of land and assets acquisition on the people and communities affected, taking into account the social, cultural, and economic parameters.

• Discussion on the project’s impacts on the poor, indigenous and/or ethnic minorities, ad other vulnerable groups; and

• Identification of gender and resettlement impacts, and the social economic situation, impacts, needs, and priorities of women.

Information Disclosure, Consultation, and Participation

• Identification of the project stakeholders, primary stakeholders in particular

• Description on the consultation and participation mechanism to be used during the different stage of the project cycle.

• Description on activities undertaken to disseminate project and resettlement information including voluntary contribution policy and procedure, if the project requires the voluntary contribution.

• Summary the result of consultation with the affected people (including host communities), and discussion on how the concerns raised and recommendation made were addressed in the resettlement plans.

• Confirmation on the disclosure of the draft resettlement plan to the affected people, arrangements to disclose any subsequent plans.

• The planned information disclosure measures (including the type of information to be disseminated and method of dissemination) and the process for consultation with the affected persons during project implementation

Grievance Redress Mechanisms

• Mechanism to receive and facilitate the resolution of the affected persons’ concerns and grievances.

• Procedure and accessibility to the affected persons and gender sensitive

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Legal Framework • National and local laws and regulations that apply to the project and the gaps between local laws and ADB’s policy requirements, how to address the gaps

• The legal and policy commitments from the executing agency for all type of displaced persons

• Principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, income, and livelihoods;

• Discussion on the compensation and assistance eligibility criteria, the arrangements and the time of compensation and assistance will be provided

• Policy and procedure for the voluntary contribution including the mechanism to prepare the voluntary contribution report and it’s review.

• Land acquisition process and the schedule

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Entitlement, Assistance and Benefit

• Definition of the displaced persons entitlement and eligibility, and description of all resettlement assistance measures (includes an entitlement matrix).

• Specifies all assistance to vulnerable groups, including women, and other special groups, if any.

• Outlines of the opportunities for affected persons to derive appropriate development benefits from the projects

• Description on the voluntary contribution and those opted for voluntary contribution

Relocation of Housing and Settlements

• The options for relocating housing and other structures (ensure that gender concerns and support to vulnerable groups are identified)

• Description of the alternative relocation site considered; community consultation conducted; and justification for selected sites

• Timetables for site preparation and transfer • The legal arrangements for the transfer titles to resettled persons • Measures to assist displaced persons with their transfer and

establishment at new site • Integration with host populations

Income Restoration and Rehabilitation

• Identification of the livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources

• Description of the income restoration programs, including multiple options for restoring all type of livelihood.

• Measures to provide social safety net through project special funds and/or social insurance

• Special measures to support vulnerable groups • Gender consideration and training programs

Resettlement Budget and Financing Plan

• An itemized budget for all resettlement activities • The flow of funds • A justification for all assumption made in calculating compensation

rates and other cost estimates • Information on the source of funding for resettlement

Institutional Arrangement

• Institutional arrangement responsibilities and mechanism for conducting the measures of resettlement plan

• Institutional capacity building program, if required • Role of NGOs, if necessary and organizations of the affected

persons • Description on how women’s group will be involved in

resettlement planning and management Implementation Schedule

• Time bound, implementation schedule for all key resettlement and rehabilitation activities. The schedule should be synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline.

Monitoring and Evaluation

• Mechanism and benchmark appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangement for participation of the affected persons in the monitoring process

• Reporting procedure

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• Inventory of land/non-land assets and estimated budget for the compensation

• Relevant local regulations on land acquisition referred for the resettlement plan.

Supporting Documents • Minutes of community meetings on land acquisition mechanism

for the subproject. • Copies of completed and signed voluntary contribution consent

forms. • Schedule of resettlement activities

AP = affected person.

Urban Sanitation and Rural Infrastructure to Support PNPM Mandiri Project (RRP INO 43255-01

Annex 3: Voluntary Contribution Consent Form Republic of Indonesia [INSERT NAME] Province [INSERT NAME] District/City [INSERT NAME] Kecamatan [INSERT NAME] Village/Neighborhood Certificate of Land /Tree/Access [CHOOSE ONE] Transfer I [INSERT NAME. AGE, NATIONALITY, OCCUPATION], with residence located in [INSERT NAME] village, [INSERT NAME] district, [INSERT NAME] sub district, [INSERT NAME] province, Certify that I have been previously informed by village local authority of my right to entitle compensation for any loss of assets (land, trees, access and structures) that might caused by the construction of [INSERT SUPRPOJECT ACTIVITY] in [INSERT NAME OF LOCATION], [INSERT NAME] kecamatan, of [INSERT NAME OF DISTRICT AND PROVINCE]. I also confirm that I do not request any compensation of loss of [INSERT THE LOSSES] and would request the local authority to consider this as my contribution to the Project.

If there is land exchange/land to land replacement (as agreed from community discussion), add the statement below in the certificate. I confirm that I voluntarily accept the land/trees/access to use the land/structures [CHOOSE ONE] of [INSERT AMOUNT OF ASSETS] square meters/trunks [CHOOSE ONE] located in [INSERT NAME] village [INSERT NAME] district of [INSERT NAME] province to be provided by the local village authority for compensation. Therefore, I prepare and sign this certificate as proof of my decision. [INSERT NAME] Village [INSERT DATE] The owner/user [CHOOSE ONE] of the land/trees/structure [CHOOSE ONE] [INSERT NAME AND SIGN] Witnesses:

Type of Loss Area (m2)/ trunks

Unit rates Total Comment

Land Tree/crops Structure Access

Urban Sanitation and Rural Infrastructure to Support PNPM Mandiri Project (RRP INO 43255-01

1. [INSERT NAME] 2. [INSERT NAME] 3. [INSERT NAME]

Certified by the Chief of the Village [INSERT NAME AND SIGN] Certified by the Project representative [INSERT NAME AND SIGN] Certified by the local CBO representative [INSERT NAME AND SIGN]