KENYA ELECTRICITY EXPANSION PROJECT (EASP)-
RURAL ELECTRIFICATION AUTHORITY (REA) COMPONENT
RESETTLEMENT POLICY FRAMEWORK
December, 2009
EXECUTIVE SUMMARY
1. The REA component of the Kenya Electricity Expansion Project has been designed to increase access to electricity especially in rural areas in Kenya.
2. The Project will have three components namely: (1) Isolated diesel stations (2) Grid extension (3) Solar Photo Voltaic (PV) Installation.
3. There is a likelihood that the identified grid extensions and installation of isolated diesel stations may lead to the physical displacement of people, loss of their shelter, loss of assets, loss of income sources or means of livelihood, or restriction of access to economic resources. Therefore, OP 4.12 will be triggered. Specific locations of some of the proposed projects have not yet been established. When REA eventually establishes the locations, land would be acquired; alternatively, access to economic resources may be lost, denied or restricted and people may then be affected. At that stage, OP 4.12 calls for the preparation of individual Resettlement Action Plans that must be consistent with this Ressetlement Policy Framework (RPF). Unlike installation of isolated stations and construction of grid line extensions, installation of Solar PV won’t cause any effect.
4. A major objective of this RPF is to ensure that affected individuals and households, as well as affected and/or displaced communities are meaningfully consulted, have participated in the planning process, and are adequately compensated to the extent that at least their pre-displacement incomes have been restored and that the process has been a fair and transparent one. The specific objectives include: to avoid or minimize involuntary resettlement; to ensure that people and enterprises affected by the project are compensated for any loss of property and/or socio-economic displacement as a result of the project; to provide affected people with the opportunities to restore or improve their living standards and income earnings capacity to at least pre-project levels and to provide guidelines to stakeholders participating in the mitigation of adverse social impacts of the project, including rehabilitation/resettlement operations in order to ensure that Project Affected Persons (PAPs) will not be impoverished by the adverse social impacts of the project.
5. It is not envisaged that many sub-projects will require land acquisition which will cause displacement and lead to the need to relocate and/or compensate affected people. Nevertheless, funds should be made available to be used to cater for the few sub-projects that may require land acquisition and, therefore, compensation. Consequently, an indicative resettlement budget has been included in the RPF to ensure that funds are allocated for compensation, should the need arise.
6. The main costs will involve payments for entitlements, and the training of REA Project Implementation Team (PIT) in aspects of resettlement plan preparation, implementation and monitoring. The estimates have been prepared with the prevailing prices of entitlements and other necessary items in mind. Also included is a contingency (of about 10%) to cater for any unforeseen expenses that may arise. The indicative cost and budget for the activity will be approximately KShs 5 Million (Approximately US$ 65,329).
7. As the project is a Government owned and managed program, land acquisition should be considered as being done in the public interest. That being the case all costs of the resettlement program will be borne by the Government through the Ministry of Energy (MOE).
Acronyms
BP Best Practices
DFI Development Finance institutions
EAP Environmental Action Programmes
EIA Environmental Impact Assessment
ESIA Environmental and Social Impact Assessment
GRRM Grievance Referral and Redress Mechanism
HV High Voltage
IFC International Finance Corporation
REA Kenya Power and Lighting Company Limited
LPAP Land Purchase Assistance Programme
O&M Operations and Maintenance
PAPs Project Affected Persons
PAH Project Affected Households
PCDP Public Consultation and Disclosure Plan
PIM Project Information Memorandum
RAP Resettlement Action Plan
RPF Resettlement Policy Framework
RPF Resettlement Policy Framework
REA Rural Electrification Authority
PIT Project Implementation Team
Definitions of Key Terms
Project Affected Person (PAP): any person who, on account of the execution of the Project, or any of its components or subprojects would have their:
I. Right, title or interest in any house, land (including residential, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, in full or in part, permanently or temporarily; or
2. Business, occupation, work, place of residence or habitat adversely affected; or
3. Standard of living adversely affected.
Project Affected Household means the family or collection of PAPs that will experience effects from land acquisition regardless of whether they are physically displaced or relocated or not.
Compensation means payment in cash or kind for an asset to be acquired or affected by a project at replacement cost.
Cut-off-date means the date after which PAPs will NOT be considered eligible for compensation, ie. they are not included in the list of PAPs as defined by the socio-economic survey.
Displaced Persons means all the people affected by a project through land acquisition, relocation, or loss of incomes and includes any person, household, firms, or public or private institutions who as a result of a project would have their;
(i) Standard of living adversely affected;
(ii) Right, title or interest in all or any part of a house, land (including residential, commercial, agricultural, plantations, forest and grazing land) or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; or
(iii) Business, occupation, place of work, residence, habitat or access to forest or community resources adversely affected, with or without displacement.
Encroachers mean those people who move into the project area after the cut-off date and are therefore not eligible for compensation or other rehabilitation measures provided by the project.
Entitlement means the range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to PAPs, depending on the type and degree nature of their losses, to restore their social and economic base.
Full Cost of Resettlement means compensation based on the present value of replacement of the lost asset, resource or income without taking into account depreciation.
Income Restoration means the measures required to ensure that PAPs have the resources to at least restore, if not improve, their livelihoods.
Indigenous peoples mean the people indigenous to an area and include ethnic minorities as defined by World Bank Operational Policy on Indigenous Peoples (OP 4.10).
Involuntary Resettlement refers both to physical displacement (relocation or loss of shelter) and to economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project-related land acquisition. Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition that result in displacement. This occurs in cases of: (i) lawful expropriation or restrictions on land use based on eminent domain: and (ii) negotiated settlements in which the buyer can resort to expropriation or impose legal restrictions on land use if negotiations with the seller fail.
Land acquisition means the process whereby a person or household is involuntarily alienated from all or part of the land s/he owns or possesses, to the ownership and possession of a project for public purposes, in return for fair compensation.
Market Value means the process of determining market value has sought to establish appropriate compensation figures so that the affected population is able to restore their standards of living to levels “at least as good as or better than” than they were prior to the project. Where the Government rates do not provide for this standard of value, REA, with the technical support of the independent evaluator will calculate and adjust the compensation figures according to these principles.
Relocation means the physical moving of PAPs from their preproject place or residence, place for work or business premises,
Resettlement Action Plan means the time-bound action plan with budget setting out resettlement strategy, objectives, entitlements, actions, responsibilities, monitoring and evaluation.
Resettlement Impacts The direct physical and socio-economic impacts of resettlement activities in the project and host areas.
Resettlement Policy Framework A resettlement policy framework is required for projects with subprojects or multiple components that cannot be identified before project approval. This instrument may also be appropriate where there are valid reasons for delaying the implementation of the resettlement, provided that the implementing party provides an appropriate and concrete commitment for its future implementation. The policy framework should be consistent with the principles and objectives of OP 4.12 of the World Bank.
Socio-economic survey means the census of Project Affected Households/Project Affected Persons (PAHs/ PAPs) of potentially affected people, which is prepared through a detailed survey based on actual data collected.
Vulnerable means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement i.e.; (i) female-headed households with dependents; (ii) disabled household heads; (iii) poor households; (iv) landless elderly households with no means of support; (v) households without security of tenure; and (vi) ethnic minorities.
Table of Contents
EXECUTIVE SUMMARY i
Acronyms iii
Definitions of Key Terms iv
1.0 INTRODUCTION 1
1.1 Purpose 1
1.2 Objectives of the Project 1
1.3 Description of the Proposed Component 1
1.4 Components Involving Land Acquisition and Resettlement and/or 1
Compensation 1
1.4.1 Grid line Extensions 1
1.4.2 REA Land Acquisition and Resettlement and/or Compensation Procedure in 2
the Past 2
1.5 Justification for Resettlement Policy Framework 3
2.0 POLICY FRAMEWORK 4
2.1 Principles and Objectives Governing Resettlement Preparation and Implementation 4
2.2 Process Description for Resettlement Plans Preparation and Approval 6
2.2.1 Socioeconomic Survey 6
2.2.2 Alternative Sites and Selection 8
2.2.3 Access to training, employment, and credit 8
2.3 Estimated Population and Likely Categories of Affected Persons 8
2.4 Eligibility Criteria for Compensation 9
2.5 Legal Framework 11
2.5.1 Registration Systems 11
2.5.2 Ownership 12
2.5.3 Expropriation of Land for Development in Kenya 13
2.5.5 Procedures under Chapter 288 of the “Land Acquisition Act” 13
2.6 Framework for RAP-Procedures 14
2.6.1 RAP Framework Guiding Principles 14
2.6.2 Resources 14
2.6.3 Community Engagement Requirements 15
2.6.4 Eligibility Notice 16
2.6.5 Implementation Mechanism 16
2.6.6 Legal and Legislative Requirements 16
2.6.7 Involuntary Land Acquisition 17
2.6.8 Socio-economic Survey 17
2.6.9 Resettlement and Compensation Action Plan 18
2.7 Methods of Valuing Affected Assets 20
2.7.1 Compensation for loss of property 21
2.7.2 Replacement cost for other assets: 23
2.8 Organizational Procedures for the Delivery of Entitlements 25
2.8.1 Administrative Authorities 25
2.8.2 Activities Involved 25
2.8.3 Institutional Arrangements 26
2.9 The Implementation Process 27
2.10 Grievance Redress Mechanisms 27
2.12 Mechanisms for Consultations 29
2.13 Arrangements for Monitoring 30
2.14 Programming and Scheduling 34
2.15 Funding and Indicative Budget 35
viii
1.0 INTRODUCTION
1.1 Purpose
1. The purpose of this policy framework is to provide the guidelines for the preparation of RAPs in cases of involuntary land acquisition in the REA component. The framework also seeks to clarify resettlement principles, organizational arrangements, and design criteria to be applied to the Kenya Electricity Expansion Project-REA Component.
1.2 Objectives of the Project
2. The Electricity Expansion project has 13 environmental and social safeguards documents, which are prepared by KenGen, KPLC, Ketraco and REA for their respective sub-components. Every institution is responsible in implementing of it sub component in the Electricity Expansion project that could be funded by World Bank.The REA component is designed to increase access to electricity in rural areas. The objectives of the project are:
i) Increasing access to electricity by accelerating connection rates and introducing a customer-friendly connection policy;
ii) Promotion of the use of renewable energy sources like solar,
iii) Providing quality and affordable electricity to all in rural areas.
1.3 Description of the Proposed Component
3. REA’s Proposal has identified priority projects for implementation in the period 2009/10. These projects were identified jointly with the Kenya Agricultural Productivity & Agribusiness Project (KAPAP) team and preference was given to agribusiness sites across the country.
4. The identified priority projects are distributed in various constituencies in various constituencies across the country. The list of the proposed projects is Annexed (See Appendix 8).
1.4 Components Involving Land Acquisition and Resettlement and/or
Compensation
1.4.1 Grid line Extensions
5. There are three categories of grid line extensions under this project namely:
· High voltage lines – 66kV
· Medium voltage lines - 33kV and 11kV
6. Most of the overhead power networks at 11KV, 33KV and 66KV are constructed on treated wooden poles although concrete poles are being introduced. Wooden poles are treated with creosote, which is a petro-chemical product.
7. Approximately 85 percent of land required for the grid line extensions will comprise of road reserves and public utility land.
1.4.2 REA Land Acquisition and Resettlement and/or Compensation Procedure in the Past
Isolated Diesel Stations
8. The REA would identify the potential site and the individual registered landowner whom they would approach to negotiate the land price based on the existing market value. If the plot belongs to the Local Authority or is public land (Government), the REA would make a formal request to either of them. Upon approval, the Local Authority would effect the allotment of the land while the Government would grant the land through the Commissioner of Lands, as the case may be. REA also approaches its sister companies (parastatals) for land. This is only done on a willing seller basis.
9. The owner of the land is compensated appropriately. If there are tenants or squatters on the land, they are also compensated according to the report of the Kenya Power and Lighting Company Limited Resettlement Action Team. The team would value the property on the land i.e. buildings and crops, as well as the land itself.
Medium (33kV and 11kV) and High (66kV) Voltage Lines
10. A reconnaissance survey would first be done to search for the best possible route. It is REA policy to avoid existing structures as much as possible. Once the best route has been established, a meeting between the REA staff, the locals and the local administration would be arranged. During the meeting REA would formally request for permission to survey the area. Once this is agreed upon, the surveyor would move to site and take detailed profiles of the area and also place pegs where the poles are to be located. The surveyor would then prepare a cadastral map of the area showing the plot numbers and the route of the power lines as well as the position of the poles.