Local Government Capacity Support Project

Republic of Ghana

MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT

LOCAL GOVERNMENT CAPACITY SUPPORT PROJECT

(LGCSP)

Final

RESETTLEMENT POLICY FRAMEWORK

(RPF)

Prepared by:

Y Amoyaw-Osei

February 2011

MLGRD Final RPF

List of Acronyms
AMA / Accra Metropolitan Authority
BP / Bank Procedures
DDF / District Development Fund
EA / Environmental Assessment
EA/TRC / Environmental Assessment Technical Review Committee
EAA / Environmental Assessment and Audit Department
EAPM / Environmental Assessment Procedures Manual
EAR / Environmental Audit Report
EIS / Environmental Impact Statement
EMP / Environmental Management Plan
EPA / Environmental Protection Agency
ESIA / Environmental and Social Impact Assessment
ESMP / Environmental and Social Management Plan
ESO / Environmental and Social Officer
FOAT / Functional and Organisational Assessment Tool
GEDAP / Ghana Energy Development and Access Project
GEF / Global Environment Facility
IDA / International Development Association
LGCSP / Local Government Capacity Support Project
LI / Legislative Instrument
M&E / Monitoring and Evaluation
MEP / Monitoring and Evaluation Plan
MLGRD / Ministry of Local Government and Rural Development
MMA / Metropolitan and Municipal Assemblies
MOE / Ministry of Energy
MOFEP / Ministry of Finance and Economic Planning
MPCU / Metropolitan/Municipal Planning and Development Unit
ESO / National Environmental and Social Officer
NGO / Non-Governmental Organization
OP / Operational Policy
OPN / Operational Policy Note
PAP / Project Affected Persons
PCDP / Public Consultation and Disclosure Procedures
PER / Preliminary Environmental Report
PIU / Project Implementing Unit
RAP/ARAP / Resettlement Action Plan/ Abbreviated Resettlement Action Plan
ROW / Right of Way
RPF / Resettlement Policy Framework
SEA / Strategic Environmental Assessment
TOR / Terms of Reference
Table of Contents

List of Tables

List of Figures

EXECUTIVE SUMMARY

1.0BASIC INFORMATION

2.0PROJECT DESCRIPTION AND RATIONALE FOR RESETTLEMENT POLICY FRAMEWORK (RPF)

2.1Background

2.2Description of the Local Government Capacity Support Project (LGCSP)

2.3Rationale for the RPF

2.4Objectives of the RPF

3.0LEGAL AND INSTITUTIONAL FRAMEWORK

3.1Legal Framework for Expropriation and Compensation

3.1.1Political Economy and Governance in Ghana

3.1.2Property and Land Rights in Ghana

3.1.3Acquisition and Valuation of Land and other Assets

3.1.4Human Rights and Compensation

3.1.5Dispute Resolution and Grievance Mechanisms

3.1.6Comparison to World Bank OP 4.12

3.4Institutional Framework

3.4.6Land Valuation Board (LVB)

3.4.7Ministry of Finance/Accountant General’s Department

3.4.8Lands Commission/Ministry of Lands and Forestry

3.4.9Town and Country Planning Department (of MMAs)

3.4.10Attorney General’s Department and Ministry of Justice

3.4.12Metropolitan/Municipal Assemblies

3.4.13Regional Coordination Council (RCC)

3.4.14Non-governmental Organizations (NGO)

4.0COMPENSATION FOR LAND AND OTHER ASSETS

4.1Description of LGCSP Activities with potential for Compensation and Resettlement

4.1.1Project Affected Persons (PAPs)

4.1.2Project Affected Households

4.1.3Vulnerable Groups of People

4.1.4Eligibility of PAPs

4.1.5Screening

4.1.6RAP Preparation

5.0LGCSP AND RPF IMPLEMENTATION ARRANGEMENT

5.1Implementation Arrangements

5.2Valuation of Entitlements and Assets

5.2.1Valuation Methodology

5.2.2Land Acquisition Procedure and Compensation

5.2.3Valuing Entitlement

5.2.3Procedures for Delivery of Entitlements

5.2.4Time Frame

5.2.4RPF Estimated Budget

6.0RPF CONSULTATIONS

6.1Consultations with MMAs

6.2Consultations with the EPA

6.3RPF and ESMF Disclosure

References

ANNEX 1: World Bank Resettlement Policy Framework (RPF)

ANNEX 2: Annotated Outline for Preparing a Resettlement Action Plan (RAP)

ANNEX 2ARAPs IMPLEMENTATION SCHEDULE AND COSTS

ANNEX 2BPUBLIC CONSULTATION AND DISCLOSURE PLAN FOR RAPs

ANNEX 2CMONITORING AND EVALUATION OF IMPACTS

ANNEX 3: Sample Grievance and Resolution Form

ANNEX 5: Glossary of Terms

ANNEX 6: Relevant Laws

ANNEX 7: Consultations

ANNEX 8:DISCLOSURE WORKSHOP - REPORT

List of Tables

Table 2. 1Proposed Performance Indicators for the Urban Grant

Table 3. 1Comparison of Ghanaian and World Bank Policies on Resettlement and Compensation

Table 4. 1Entitlement Matrix

Table 5. 1Potential RPF Implementation Obstacles and Mitigation Measures

Table 5. 2RPF Implementation Budget

Table 6. 1 Summary of Consultations with the Assemblies

Table 6. 2 Summary of Consultations with EPA

List of Figures

Figure 5. 1LGCSP and RPF Implementation Arrangements

EXECUTIVE SUMMARY

Background and Project Rationale

The Ministry of Local Government & Rural Development (MLGRD) has been at the fore-front of decentralization policy and implementation and with support from the World Bank it is currently preparing a Local Government Capacity Support Project (LGCSP). The main objective of the proposed LGCSP is the strengthening of institutions (systems, processes and organizations) that support accountable local governance for improved service delivery. The project will provide an integrated package of support to build the capacity of Metropolitan and Municipal Assemblies (MMAs). This will assist the Government of Ghana (GoG) to develop a differentiated policy, regulatory and fiscal framework that accounts for the varying needs of different categories of local governments, while remaining consistent with the overall national decentralization policy.

The project has four main components. Component 1 will be implemented by the Ministry of Finance and Economic Planning (MOFEP), and Components 2, 3 and 4 will be implemented by MLGRD. These components are:

1.Component 1: Strengthening the fiscal framework for decentralization;

2.Component 2:Enhancing decentralized urban service delivery;

3.Component 3:Stimulating demand for accountable governance and service delivery; and

4.Component 4:Institutional and project management support.

Under Component 2, the project will provide grants to MMAs based on achievement of performance in key focus areas of the project related to public financial management and accountability. In order to access the grant each year, each MMA will need to meet a set of minimum conditions for the previous year.

This Resettlement Policy Framework (RPF) relates to Component 2 under which the project will provide grants to MMAs to implement development priorities within their Medium Term Development Plans (MTDPs). The range of sub-projects within MTDPs typically include construction of school blocks, market stalls and water supply systems, expansion of lorry parks,reshaping of road, acquisition of waste disposal sites /landfills andright-of-way (RoW) for laying utility lines, andmounting of electricity poles, etc. The implementation of some of the sub-projectsis likely to have impacts on land access, restriction of access to assets, displacement and loss of livelihood and property, etc.and as such will trigger the World Bank Safeguards PolicyOP4.12 on Involuntary Resettlement, among others. Such sub-projects willrequire to address the resettlement and compensation payment issues, etc. of affected persons, through preparation ofResettlement Action Plans (RAPs) or Abbreviated Resettlement Action Plans (ARAPs). In line with the Bank’s requirements therefore, this RPF has been prepared for the LGCSP to guide the RAPs/ARAPs.

The objective for the RPF is to set out the policies, principles, institutional arrangements, schedules and indicative budgets, etc that will take care of the anticipated resettlements and other social impacts in the RAPs; as well as provide for the implementation budgets of the RPF.

Policy, Legal and Administrative Frameworks

The policies and laws guiding land acquisition, ownership and compensation were reviewed. The similarities and differences in the World Bank’s involuntary resettlement policy OP4.12 and the State Lands Acts of Ghana were also reviewed and provided in the report.

Compensation for Land and Other Assets

The RPF provides special attention to the needs of vulnerable groups among the Project Affected Persons (PAPs), especially households with incomes below the national poverty line, including the landless, elderly and disabled, women and children, indigenous groups and ethnic minorities, and other historically disadvantaged. Compensation payments for PAPs will be based on the Entitlement Matrix (Table 4.1) of this RPF.

RAP Preparation

Annex 2 describes the requirements for the RAP in detail. The RAP should be started, as follows:

• A socio-economic survey will be completed to determine scope and nature of resettlement impacts;
• The socio-economic study will be carried out to collect data in the selected sub-project sites; and
• The socio-economic assessment will focus on the potential affected communities, including some demographic data, description of the area, livelihoods, the local participation process, and establish baseline information on livelihoods and income, landholding, etc.

LGCSP and RPF Implementation Arrangement

MLGRD will be the lead implementing agency for the LGCSP on the whole. The Planning, Budgeting, Monitoring and Evaluation (PBME) Department is the entity designated by MLGRD to manage the project. PBME will also supervise the implementation of the RPF by the MMAs. MLGRD will recruit an Environmental and Social Officer (ESO) who will acts as the interlocutor of the LGCSP at MLGRD and MMAs (Planning Officers and Environmental Health Officers). At each MMA level, RPF implementation will be under the Metropolitan and Municipal Planning Coordination Unit (MMPCU) with oversight provided by the Development Planning Subcommittees of the assemblies. The main focal and overall responsible person will be the Planning Officerwho will be responsible for compliance with environmental permitting of developments, measures for social impacts mitigation, monitoring and reporting as stipulated under this RPF and the ESMF.A budget for implementation of this RPF is provided.

RPF Consultations

Consultations were held with the under-listed MMAs to gain insight on the types of projects handled and how resettlement issues have been addressed, with respect to projects under theMDTPs. The consultations also explored the capacity needs of MMAs to implement the RPF, and what could be done to enhance incorporation of resettlement issues for projects that fall under the LGCSP and also other future projects:

• Ashaiman Municipal Assembly (Greater Accra Region);
• Cape Coast Municipal Assembly(Central Region);
• Komenda-Edina-Eguafo-Abirem Municipal Assembly (Central Region);
• Sekondi-Takoradi Metropolitan Assembly (Western Region);
• Asante-Akim North Municipal Assembly (Ashanti Region);
• Accra Metropolitan Assembly (Greater Accra Region);
• Keta Municipal Assembly (Volta Region);
• Kumasi Metropolitan Assembly (Ashanti Region); and
• Kwahu West Municipal Assembly (Eastern Region).

The Regional offices of the Environmental Protection Agency (EPA) in Cape Coast and Kumasi were also consulted in relation to the role of EPA in the RPF and RAPs/ARAPs, as the national organization with the mandate to review and approve projects for implementation, under the Environmental Assessment Regulations, 1999, LI 1652.

A disclosure workshop for the RPF and ESMF for stakeholders, mainly the leadership of MMAs was held on January 31, 2011 at the Ministry of Local Government and Rural Development, which was rated as highly beneficial by the participating stakeholders.

1 February 2011

MLGRD Final RPF

CHAPTER ONE

Basic Information

Project Name

Project Development Objectives

Project Outcomes

Expected Project Benefits

Project Social Risks

Project Cost

RPF Cost

1.0BASIC INFORMATION

1. Country and Project Name: Ghana, Local Government Capacity Support Project

1. Project Development Objectives: To strengthen institutions that support accountable local governance for improved service delivery

1. Project Outcomes:

(a)Strengthened intergovernmental fiscal framework;
(b)Strengthened local public financial management and accountability for improved infrastructure and services in urban assemblies; and
(c)Improved citizens’ engagement with urban assemblies and their perceptions of urban management.

1. Expected Project Benefits:

By the end of the project, it is expected that more than 2 million residents of the targeted 46 urban assemblies will have benefitted from the investment projects under the Urban Development Grant within various relevant areas such as water, sanitation, education, health, etc. Further, it is excepted that GoG will completed a comprehensive intergovernmental fiscal framework

1. Identified Project Social Risks:

(a)Potential lack of coordination between the assemblies and regional EPA Offices in handling and following up on E&S issues pertaining to assemblies’ projects; and
(b)Agitation of community members against implementation of projects (due to lack of awareness or politicization)
Recipient:
Government of Ghana
Responsible Government/Country Agency for RPF Implementation: GoG/MLGRD
Total Project Cost (USD million):175,000,000
IDA/IBRD (USD million): 175,000,000
Government (USD million):
Other-Co-financing (USD million):
Total Cost of RPF (USD million):
Project preparation (USD million):
Government (USD million):
Name/Contacts of Consultant/Consulting Firm who prepared RPF:
Yaw Amoyaw- Osei / Box SK482, Sakumono Estates, Tema / Tel: 0302-243 223 864 /
Date RPF Prepared: January, 2011 / Date RPF Disclosed: January, 29, 2011
Country: Ghana / Social Safeguards Specialist: Beatrix Allah- Mensah
Country Manager:
Country Director: Ishac Diwan / Task Team Leader: Rumana Huque
SDN Sector Leader:
Project ID: P122692 / Environment Category: B
Date ISDS prepared: December, 2010 / Date ISDS disclosed: February, 2011
Year of project appraisal: 2011 / Year of project closing: 2017
Is this a transferred project? / [ X ] Yes [ ] No
Is RPF applied to financial intermediary or intermediaries financing sub-projects? / [X] Yes [ ] No
Is RPF applied because zone of impact of sub-projects cannot be determined at this stage? / [X ] Yes [ ] No
Is the RPF applied because the zone of impact is known but the site (location) alignments are not yet well established? / [ X] Yes [ ] No
Is this community driven development (CDD) project? / [ ] Yes [ x ] No
Is this a sector-wide project with national coverage? / [ X] Yes [ ] No
Is this a regional operation, with national/sub-national coverage? / [ X] Yes [ ] No
Safeguard policies triggered? / Applicable
Environmental Assessment (OP/BP 4.01) / [ X] Yes [ ] No
Natural Habitats (OP/GP 4.04) / [ ] Yes [x] No
Forestry (OP 4.36) / [ ] Yes [ x] No
Pest Management (OP 4.09) / [ ] Yes [ x ] No
Cultural Property (OP 4.11) / [ ] Yes [ x] No
Indigenous Peoples (OP 4.10) / [ ] Yes [ x] No
Involuntary Resettlement (OP 4.12) / [ X] Yes [ x] No
Safety of Dams (OP/BP 4.37) / [ ] Yes [ x ] No
Projects in Disputed Areas (OP/BP 7.60) / [ ] Yes [ x ] No
Projects on International Waterways (OP/BP 7.50) / [ ] Yes [ x] No
CHAPTER TWO

Project Description and Rationale for RPF

Background

Description of the LGCSP

Rationale for the RPF

Objectives of the RPF

2.0PROJECT DESCRIPTION AND RATIONALE FOR RESETTLEMENT POLICY FRAMEWORK (RPF)

2.1Background

Since 1988, Ghana has been implementing a comprehensive local government and public administrative reforms via decentralization, anchored on six inter-related pillars of political decentralization, administrative decentralization, fiscal decentralization, decentralized planning, market decentralization (also called public private partnerships) and spatial decentralization. The implementation is also foisted on three-interrelated strategies of transfer of power, transfer of competence and transfer of means. The main thrust of the reforms is the establishment of a local government system comprising Regional Coordinating Councils (RCCs), Metropolitan, Municipaland District Assemblies (MMDAs), as the highest political, administrative, planning, budgeting as well as the rating authority in the district; Sub-District Structures of Urban, Town, Zonal, Area Councils (UTZACs); and Unit Committees.

The Government of Ghana (GoG) since then has implemented a number of projects and interventions (in the areas of infrastructure delivery, sanitation, capacity building, etc) in support of and to accelerate the implementation of the decentralization program. Currently, Ghana has taken series of actions to pursue the implementation of the national decentralization policy.

The Ministry of Local Government & Rural Development (MLGRD) has been at the fore-front of formulating decentralization policy and coordinatingdecentralization implementation and reviewing the implementation process.The Ministry (MLGRD), with support from the World Bank, is currently preparing a Local Government Capacity Support Project (LGCSP).

2.2Description of the Local Government Capacity Support Project (LGCSP)

The main Project Development Objective (PDO) is the strengthening of institutions (systems, processes and organizations) that support accountable local governance for improved service delivery. The specific PDOs are:

• To improve the predictability of fiscal transfers from central government to local governments;
• To increase the capacity of 46 metropolitan and municipal assemblies in five areas related to urban service delivery; and
• To improve citizens’ perceptions of urban management and their engagement with urban assemblies.

The project will provide an integrated package of support to build the capacity of Metropolitan andMunicipal (MMAs). This will assist GoG to develop a differentiated policy, regulatory and fiscal framework that accounts for the varying needs of different categories of local governments, while remaining consistent with the overall national decentralization policy. For the 46 urban assemblies, the challenges of managing urban growth and providing urban services require the development of a tailored package of support and incentives that will be provided in the project.

The project has four main components. Component 1 will be implemented by the Ministry of Finance and Economic Planning (MOFEP), and Components 2, 3 and 4 will be implemented by MLGRD. These components are:

1. Strengthening the fiscal framework for decentralization;
2. Enhancing decentralised urban service delivery;
3. Stimulating demand for accountable local governance; and
4. Institutional and project management support.

Under Component 2, the project will provide grants to urban (metropolitan and municipal) assemblies based on achievement of performance in key focus areas of the project related to public financial management and accountability. The grant funds will be provided as discretionary funds that can be used by MMAs for infrastructure,provided funds are appropriated and allocated through the conventional budget process, remain within their area of legal functional competence and conform to District Development Fund (DDF) requirements. This component will impact service delivery at the urban assembly level.

Allowable expenses include (i) maintenance of community and social infrastructure (expenses related to furniture and fixtures, plant and machinery, and general equipment); (ii) expenses related to construction (new projects, completion of on-going/abandoned projects, and rehabilitation of buildings, plant and machinery), and (iii) purchase of equipment and furniture.

Disallowable expenses (negative list) are as follows: investments outside of the DMTDPs; purchase of cars, motorbikes and bicycles; construction and furnishing of District Administration Offices and residential accommodations; investments in loans, other micro credit schemes and other securities; payment of allowances to Assembly members and staff; and acquisition of land.