Federal Democratic Republic of Ethiopia
Addis Ababa Water and Sewerage Authority
Urban Water Supply & Sanitation Project
Resettlement Policy Framework
Draft
Prepared for: Addis Ababa Water and Sewerage Authority
Prepared by: F.Giovannetti, 6 Rue F. Mauriac, 84000 Avignon, France
25 January 2007
Revision 1
AAWSA – Resettlement Policy Framework
Contents
EXECUTIVE SUMMARY
The Project
Potential Impacts on Land, People and Livelihoods
Legal Background
Resettlement and Compensation Principles
RPF Processes
Entitlements
Other RPF Provisions
1Scope of the Report – introduction
1.1Scope and contents of this report
1.2Key definitions
2Project DESCRIPTION AND PROJECT POTENTIAL IMPACTS
2.1Project Objectives
2.2Project Components
2.2.1Component 1: Addis Ababa Water Supply and Sanitation
2.2.2Component 2: Secondary City Water Supply and Sanitation
2.2.3Key Inputs for Components 1 and 2
2.2.4Key Outputs for components 1 and 2
2.2.5Component 3: Project Management and Monitoring and Evaluation
2.3Potential Land Impacts of Project Activities
3Legal Framework
3.1The Constitution of Ethiopia, 1995
3.1.1Protection of the Right to Private Property
3.1.2Ownership of Land and of Immovable Assets Built on Land
3.1.3Expropriation and Resettlement
3.2The Civil Code of the Empire of Ethiopia, 1960
3.2.1Expropriation for Public Interest
3.2.2Indirect Expropriation
3.3Land tenure regime in Ethiopia
3.4Rural Land Administration Proclamation, 1997
3.5World Bank Safeguard policy on involuntary resettlement
4Principles, Objectives, and Processes Related to Compensation and Resettlement in The UWSS PRoject
4.1Principles and Objectives
4.1.1Regulatory Framework
4.1.2Minimization of Displacement
4.1.3Cut-Off Date and Eligibility
4.1.4Livelihood Restoration
4.1.5Compensation
4.1.6Consultation – Grievance mechanisms
4.2Processes
4.2.1Overview of the ESMF Process
4.2.2Overview of the RPF Process
4.3Census of Affected Assets and Affected Households
4.4Resettlement Action Plan
4.5Abbreviated Resettlement Plan
4.6Situations where less than 10 people are affected
4.7Work packages
5Affected assets, affected People and entitlements
5.1Land
5.1.1Estimates of Surfaces Potentially Required
5.1.2Categorization of Land Needs
5.1.3Land Tenure Regimes
5.2Other Potentially Affected Assets
5.3Entitlements
6Resettlement and Compensation
6.1Methods for Valuation of Affected Assets
6.1.1Ascertaining Eligibility
6.1.2Land and Rights-Of-Way
6.1.3Structures
6.1.4Crops
6.1.5Auditing
6.2Resettlement and compensation
6.2.1Resettlement – Land Replacement
6.2.2Compensation
6.2.3Auditing
7Consultation and disclosure
7.1Consultation on the Resettlement Policy Framework
7.2Consultation on RAPs and ARPs
7.3Disclosure Requirements
8Grievance management Mechanisms
8.1Potential Grievances/Disputes
8.2Proposed Grievance Management Mechanism
8.2.1Registration of Grievances
8.2.2First Instance – Amicable Settlement
8.2.3Appeal to Court
9Vulnerable People
9.1Identification of Vulnerable People
9.2Potential Assistance Activities to Vulnerable People
10Monitoring and Evaluation
10.1General Objectives of Monitoring & Evaluation
10.2Auditing and Monitoring During Implementation
10.2.1Scope and Content
10.2.2Reporting
10.3Evaluation
10.4Reporting
11Implementation Responsibilities AND FUNDING
11.1Implementation Responsibilities
11.2Budget
11.3Arrangements for Funding
Appendix 1: LIST OF ACRONYMS
Appendix 2: FRAMEWORK for the census of affected ASSETS AND AFFECTED people
Affected Plot Sheet
Affected Building Sheet
Affected Household Sheet
Appendix 3: Outline of A Resettlement Action Plan
Appendix 4: Outline of An Abbreviated Resettlement Plan
Appendix 5: Template itemization of a RAP/ARP budget
Appendix 6: TEMPLATE OF A CLAIM REGISTRATION and Follow-up FORM
Appendix 7: TEMPLATE OF A CONSULTATION MEETING MINUTE FORM
Tables
Table 1: Estimated Land Requirements for Systems Considered Under the UWSS Project
Table 2: Impact / Entitlement Matrix
Table 3: Implementation Responsibilities
Figures
Figure 1: ESMF Process – Environmental Baseline Assessment and Environmental Review
Figure 2: RPF Process
Figure 3: Grievance / Dispute Management Mechanism
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AAWSA – Resettlement Policy Framework
EXECUTIVE SUMMARY
The Project
The Urban Water Supply and Sanitation Project is a project to enhance water supply and sanitation in Addis Ababa and four other Ethiopian cities. Its objectives are essentially:
-To reduce the supply-demand gap for potable water in selected urban areas in Ethiopia:
-To improve access to improved sanitation in selected urban areas of Ethiopia; and
-To improve the performance of selected urban water and sewer utilities through sector reform and increased private sector participation.
The UWSS will include three main components:
-Component 1: Addis Ababa Water Supply and Sanitation
- Component 1A: Increased access to water supply and sanitation, with an increase in water production from 200,000 to 300,000 m3/day to meet basic services. Thiswill be obtained through capacity expansion at the Legedadi reservoir and water treatment plant, and deep boreholes at selected sites within Addis Ababa, as well as a new well field located northwest of the city. Distribution networkswill be expanded to serve currently unserved areas. The sewer system in the Kalite catchment will be extended, and public sanitation facilities, managed by local service providers who charge a user fee, will be constructed.
- Component 1B: Improved operational efficiency and demand management: This component will mainly aim at reducing “non-revenue water” and improve operational efficiency. AAWSA’s financial management, billing/collection, and customer management system will also be improved, and awareness for water conservation will be created.
- Component 1C: Institutional Reform, which will include:
- sector policy development and revisions in the legal and institutional framework for water supply and sanitation,
- developing policies and measures for enhanced private sector participation and financing in this sector,
- improving utility governance and efficiency.
-Component 2: SecondaryCity Water Supply and Sanitation:
- Component 2A: Increased access to water supply and sanitation: this component will mainly address water production issues, as well as the extension of distribution networks, particularly in unserved areas and for new connections.
- Component 2B: Improved operational efficiency: Operational efficiency will be improved by reducing “non-revenue water” and improving financial management, billing and collection, and customer management.
- Component 2C: Institutional Reform: Enabling legislation will be developed to provide more autonomy to the Water Boards and to develop procedures and codes of conduct. Operator contracts with performance targets and performance incentives would also be developed and tested.
-Component 3: Project Management and Monitoring and Evaluation
Potential Impacts on Land, People and Livelihoods
The Project will entail limited land acquisition, and therefore have overall limited impacts on land, people and livelihoods. Main activities under the UWSS Project that may entail land acquisition and/or displacement are the following:
-Wells and well fields;
-Rehabilitation of dams or reservoirs;
-Water intakes from surface water bodies;
-Raw water treatment plants and storage facilities;
-Water distribution networks including pipelines, public standtaps, public water kiosks and other distribution-related facilities;
-Construction of power lines and related rights-of-way;
-Waste water treatment plants, including treatment ponds and ancillary works.
No activities with large impacts on land are envisioned (such as the construction of new storage dams and related reservoirs).
Legal Background
The legislation applicable to compensation and resettlement in Ethiopia mainly includes the following two pieces:
-The Constitution, which established principles applicable to private property and its protection, as well as the deprivation thereof for public interest, and puts forward general principles applicable to compensation and resettlement (resettlement being an option, in contrast with many other African countries),
-The Civil Code (an old code dating back from the Empire), which includes detailed provisions applicable to the calculation of compensation in the event of expropriation,
It is important to note that “freehold” private ownership of land is not recognized in Ethiopia, as all land is deemed to be property of the State. In urban settings, residents are allocated residential land under leasehold or tenancy arrangements, while in rural areas, allocation of agricultural land under tenancy or sharecropping arrangements is the most common rule.
OP 4.12, the World Bank safeguard policy on Involuntary Resettlement, will apply to the UWSS Project.
Resettlement and Compensation Principles
The main principles that will apply to any resettlement and compensation activities that may be required for implementation of the UWSS are the following:
-General framework: Any impact of the UWSS Project on land and/or people (land acquisition, resettlement, livelihood restoration of affected people) will be addressed in compliance with the Constitution of Ethiopia, with other Ethiopian regulations, and with the World Bank safeguard policy in involuntary resettlement (OP 4.12).
-Minimization of displacement: In line with the World Bank safeguard policy OP 4.12[1], the UWSS Project will minimize displacement through the following design procedures:
- Wherever inhabited dwellings may potentially be affected by a component of a sub-project, the sub-project shall be redesigned (facility relocation, rerouting) to avoid any impact on such dwellings and to avoid displacement/relocation accordingly;
- Wherever the impact on the land holding of one particular household is such that this households may not be sustainable in the long term, even if there is no need to physically displace this household, the sub-project shall be redesigned (facility relocation, rerouting) to avoid any such impact;
- For major water works like raw water treatment plants, minimization of land impact will be factored into site and technology selection and design criteria;
- Costs associated with displacement and resettlement will be internalized into sub-project costs to allow for fair comparison of processes and sites;
- To the extent possible, Project facilities will be located on public spaces;
- Pipelines, public taps, other linear infrastructures (power lines) required by the UWSS Project will be routed inside existing right-of-ways (roads, streets, power lines) wherever possible.
-Cut-Off Date and Eligibility:
- In accordance with OP 4.12 and for each sub-project under the UWSS that may entail displacement impacts, a cut-off date will be determined, taking into account the likely implementation schedule of the sub-project.
- In line with OP 4.12, the following three categories of affected people will be eligible to Project resettlement assistance:
- those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country);
- those who do not have formal legal rights to land at the time of the cut-off but have a claim to such land or assets—provided that such claims are recognized under the laws of Ethiopia or become recognized through a process identified in the resettlement plan
- those who have no recognizable legal right or claim to the land they are occupying.
-Livelihood Restoration: where people are affected by land take, the aim of resettlement will be that they should “no worse-off if not better off” after resettlement.
-Compensation:
- Compensation shall be paid prior to displacement;
- Compensation will be at replacement value.
-Consultation – Grievance mechanisms: Consultation will include:
- meaningful information and consultation, before and during the compensation and resettlement process,
- a specific grievance registration and processing mechanism.
RPF Processes
Depending on the number of affected individuals, processes in the framework of this RPF will include:
-the development of a full Resettlement Action Plan (RAP) if more than 100 individuals are affected by a given sub-project,
-the development of an Abbreviated Resettlement Plan if between 10 and 100 individuals are affected,
-the census of affected people without specific requirements pertaining to documentation disclosure if less than 10 people are affected.
Entitlements
The following table summarizes the entitlements for each category of loss:
Type of Impact / EntitlementPermanent loss of land held under long-term urban lease / Replacement by a similar piece of land (similar in location, potential and size), held under similar tenure arrangements (long-term urban lease)
OR
Cash compensation at replacement value, based on price per square meter observed in recent transactions in the same area for similar types of land
Permanent loss of land held under tenancy or sub-tenancy agreement / Replacement by a similar piece of land (similar in location, potential and size), held under similar tenure arrangements (tenancy)
No cash compensation for loss of rented land
Loss of sharecropping rights over a piece of agricultural land / Access to similar or better rights (at least sharecropping, or if possible tenancy) over a piece land of similar agricultural potential
Right-of-Way with restrictions (for example restriction on height of trees and crops making certain crops impossible) / Depending on the regime of occupation:
-For long term urban leases, cash compensation of the loss in value resulting from the restriction (usually in the order of 10 to 30% of the total land value of the affected strip for right-of-ways associated with pipeline and transmission line)
-For tenancy and sub-tenancy agreements, no cash compensation; access to a replacement piece of land in reason of the value of the restriction
Temporary land occupation / Cash compensation for income lost during the period where plot was not usable by user
Loss of uninhabited structure / Cash compensation at replacement value or replacement by a similar structure
Loss of inhabited dwelling / Resettlement in similar dwelling in a location with similar economic/agricultural potential
Loss of annual crop / Compensation of lost harvest at market price if the crop could not be harvested
Loss of perennial crops and valuable trees / Compensation of lost harvest at market price if the crop could not be harvested
Plus
Compensation of the cost of planting (seedling plus labour)
Plus
Compensation of the income lost during the period of time required to re-establish the plantation to a similar level of production (this period of time depends on the species grown, it is generally in the range 1 year – banana or papaya trees for example - to 5 or 6 years for mango trees – to be determined following regional/woreda practice
Other RPF Provisions
The full RPF report contains detailed provisions related with:
-Monitoring and evaluation,
-Grievance mechanisms,
-Assistance to vulnerable people,
-Implementation arrangements, and responsibilities for the different tasks involved by the implementation of the RPF.
1
AAWSA – Resettlement Policy Framework
1Scope of the Report – introduction
1.1Scope and contents of this report
This report is the draft Resettlement Policy Framework (RPF) for the Urban Water Supply and Sanitation (UWSS) Project. It has been prepared in December 2006 and January 2007 by independent consultantscontracted by AAWSA under World Bank financing.
The development of a RPF is a requirement for projects that may entail involuntary resettlement under the World Bank safeguard policy on involuntary resettlement (OP 4.12, December 2001). This RPF is fully endorsed by the Government of the Federal Democratic Republic of Ethiopia and presented for public consultation through the World Bank Public Information Centre.
This report includes the following chapters:
-Description of the Project
-Legal Framework
-Affected People and Eligibility
-Principles, Objectives and Processes
-Resettlement and Compensation Packages
-Implementation
-Grievance Mechanisms
-Monitoring and Evaluation
-Arrangements for Funding
Appendix 1 presents the list of acronyms used throughout this document.
Appendix 2 provides a list of documents used for the development of this report.
1.2Key definitions
Project: The UWSS Project.
Sub-Project: A water supply and/or sanitation project within the UWSS Project benefiting one particular urban area or one town.
Project-Affected Person (PAP): Any person who, as a result of the implementation of the Project, loses the right to own, use, or otherwise benefit from a built structure, land (residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily. Not all PAPs need to move due to the Project. PAPs may include:
- Physically Displaced People, i.e. people subject to Physical Displacement as defined hereunder,
- Economically Displaced People, i.e. people subject to Economic Displacement as defined hereunder.
Physical Displacement: Loss of shelter and assets resulting from the acquisition of land associated with the Project that requires the affected person(s) to move to another location.
Economic Displacement: Loss of income streams or means of livelihood resulting from land acquisition or obstructed access to resources (land, water or forest) caused by the construction or operation of the Project or its associated facilities. Not all economically displaced people need to relocate due to the Project.
Project-Affected Household (PAH):A PAH is a household that includes Project-Affected Persons as defined above. A PAH will usually include a head of household, his/her spouse and their children, but may also include other dependents living in the same dwelling or set of dwellings, like close relatives (e.g., parents, grandchildren).
Compensation: Payment in cash or in-kind at replacement value for an asset or a resource that is acquired or affected by the Project at the time the assets need to be replaced. In this RAP, “cash compensation” means compensation paid in cash or by cheque.
Cut-Off Date: Date of completion of the census and assets inventory of persons affected by the project. Persons occupying the Project area after the cut-off date are not eligible for compensation and/or resettlement assistance. Similarly, fixed assets established after the cut-off date are not eligible for compensation.
Resettlement Assistance: Support provided to people who are physically displaced by the Project. Assistance may include transportation, and social or other services that are provided to affected people during their relocation. Assistance may also include cash allowances that compensate affected people for the inconvenience associated with resettlement and defray the expenses of a transition to a new locale, such as moving expenses and lost work days.
Replacement Value: The rate of compensation for lost assets must be calculated at full replacement value, that is, the market value of the assets plus transaction costs. The replacement value must reflect the cost at the time the item must be replaced. With regard to land and structures, “replacement value” is defined as follows:
-Agricultural land: the market value of land of equal productive use or potential located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land, plus the cost of any registration and transfer taxes;
-Land in urban areas: the market value of land of equal size and use, with similar or improved public infrastructure facilities and services, preferably located in the vicinity of the affected land, plus the cost of any registration and transfer taxes;
-Household and public structures: the cost of purchasing or building a new structure, with an area and quality similar to or better than those of the affected structure, or of repairing a partially affected structure, including labor and contractors’ fees and any registration and transfer taxes.