Trans Borneo Power Grid: Sarawak to West Kalimantan Transmission Link (RRP INO 44921)

Draft Resettlement and Ethnic Minority Development

Plan

July 2011

REG: Trans Borneo Power Grid: Sarawak to West

Kalimantan Link (Malaysia Section)

Sarawak-West Kalimantan 275 kV

Transmission Line

Draft Resettlement and Ethnic Minority Development

Plan (REMDP)

July, 2011

Table of Contents

I. Introduction ........................................................................................................................................... 1

II. Project Description ............................................................................................................................... 2

A. Project Location ............................................................................................................................... 2

B. Project Concept ................................................................................................................................ 2

C. REMDP Preparation and Efforts to Minimize Potential Resettlement Negative Impacts ................ 2

III. Scope of Land Acquisition and Resettlement ................................................................................... 4

A. Transmission Line Route ................................................................................................................. 4

1.Towers .......................................................................................................................................... 4

2.Auxiliary Installations..................................................................................................................... 4

B. Right-of-Way Alignment ................................................................................................................... 4

IV. Socio Economic Survey Methodology ............................................................................................... 6

A. Collection of Primary Data ............................................................................................................... 6

B. Eliciting the Views and Perceptions of Project Affected Communities ............................................ 7

C. Collection of Secondary Data .......................................................................................................... 7

D. Data Analyses .................................................................................................................................. 7

V. Socio-Economic Profile of Affected Households Socio-Economic Profile of Affected

Communities ............................................................................................................................................... 9

A. Introduction ...................................................................................................................................... 9

B. Regional Socio-Economic Profile ..................................................................................................... 9

C. Number Of Affected Villages in Siburan Sub-district and Bau District ............................................. 9

D. Demographic Features................................................................................................................... 10

1. Population, Household, Household Size And Gender Ratio .................................................... 10

2. Ethnicity and religion ................................................................................................................. 10

3. Types of Living Quarters ........................................................................................................... 10

4. Communication Modes ............................................................................................................. 10

E. Utilities, Facilities And Services ..................................................................................................... 11

1. Water Supply ............................................................................................................................. 11

2. Electricity Supply ....................................................................................................................... 11

3. Telecommunication Facilities and Services .............................................................................. 11

4. Sanitary Facilities and Services ................................................................................................ 12

5. Health Facilities and Services ................................................................................................... 12

6. Education Facilities and Services ............................................................................................. 12

7. Community Halls And Places Of Worship................................................................................. 13

F. Burial Grounds and Cultural Sites .................................................................................................. 14

G. Land Ownership and Land Use ..................................................................................................... 14

H. Economic Activities and Employment ............................................................................................ 16

1. Age Structure, Schooling and Employment Situations ............................................................. 16

2. Types of Household Economic Activities .................................................................................. 18

3. Educational Levels of Working Groups ..................................................................................... 21

4. Estimated Household Cash Incomes ........................................................................................ 22

5. Farm Income ............................................................................................................................. 22

6. Non-Farm Incomes ................................................................................................................... 22

7. Incomes From Business Activities ............................................................................................ 23

8. Household Expenditures ........................................................................................................... 24

9. Migration ................................................................................................................................... 24

10. Involvement in Local Institutions .............................................................................................. 25

VI. Indigenous People: Specific Issues ................................................................................................. 26

A. Vulnerability Assessment ............................................................................................................... 26

B. Specific Considerations.................................................................................................................. 27

VII. Gender Issues ..................................................................................................................................... 29

A. Vulnerability Assessment ............................................................................................................... 29

B. Special Considerations .................................................................................................................. 29

VIII. Consultation and Information Disclosure ........................................................................................ 30

A. Stakeholders .................................................................................................................................. 30

B. Views and Perceptions of the Affected Communities .................................................................... 30

C. Views from SALCRA which Manages the Oil Palm Plantations .................................................... 32

IX. Legal and Policy Framework ............................................................................................................. 33

A. State Legislations ........................................................................................................................... 33

B. ADB Policies and Procedures of Guidelines .................................................................................. 34

X. Project Principles and Entitlements ................................................................................................. 36

A. Project Principles ........................................................................................................................... 36

B. Project Entitlements, Assistance and Benefits .............................................................................. 37

XI. Institutional Arrangements ................................................................................................................ 42

A. Communication with the affected communities on the proposed Project ...................................... 42

B. Loss of assets and compensation .................................................................................................. 42

C. Establishment of Organisation and Management for Grievance Mechanism ................................ 42

XII. Estimated Budget for Land Acquisition and Compensation ......................................................... 43

A. Assumptions ................................................................................................................................... 43

B. Budget estimates ........................................................................................................................... 43

XIII. REMDP Updating ................................................................................................................................ 45

XIV.Grievances Redress Mechanism. ..................................................................................................... 46

XV. Monitoring and Evaluation System................................................................................................... 47

A. Implementation Schedule............................................................................................................... 47

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 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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I. Introduction 1. The Sarawak Energy Berhad (SEB) is planning t develop the Sarawak-West Kalimantan 275 kV Transmission Line as part of the Asean Master Plan for Connectivity. This Project is also related to the energy supply plan under Sarawak Corridor of Renewable Energy (SCORE). The transmission line in the Sarawal-West Kalimantan 275 kV Transmission Line Project will run from Mambong to Benkayang, West Kalimantan covering a distance of approximately 34 km (see Figure 1). The project will connect to the interconnection transmission line between Bengkayang substation in West Kalimantan and the border with Malaysia. That project is also being funded by the ADB and safeguard documents have been prepared to meet ADB requirements. 2. This Resettlement and Ethnic Minority Development Plan (REMDP) is based on field study supported by existing documents. Altogether, 16 communities within the 2-km wide strip of land (or 1 km on either side of the power line) along the proposed transmission line were identified. Within the 6-km strip of land (or 3 km on either side of the transmission line), the total number of communities is 27. This strip of land is considered as the likely potential impact zone, and these 27 communities are considered as potentially project affected communities (PAC’s). Because the project has not yet been designed, this potential impact zone approach was adopted to ensure that the information in the REMDP represents the issues on the ground in an appropriate manner. 3. Most of the villagers in the affected settlements (95%) are Bidayuh with small proportions of Chinese, Iban and Malays who are tied to the villages by marriage. The Bidayuh is one of the major ethnic groups in Sarawak, mostly concentrating in Kuching Division; and it is a majority group in the Siburan Sub-district, Bau District and Lundu District of Kuching, as well as Serian District of Samarahan Division. In Kuching Division, it is the third largest ethnic group after the Chinese and Malay, however outside the urban areas is the predominant ethnic group. 4. In the proposed Project area, the Bidayuh are more economically well-off than most rural indigenous communities in Sarawak. This is demonstrated by their relatively high incomes from wage-earning employment and other non-farm remunerative economic activities. The communities are peri-urban in nature due to their location very close (within daily commuting distance) to Kuching which has a very broad economic base including numerous employment opportunities in many industries that are major employment generators; in the public sectors, government agencies, schools, military and police; in the private sector, catering industries, transportation industries; manufacture industries, construction industries, and others. 5. In view of these socio-economic settings of the affected communities, the level of vulnerability is very low, and would not be negatively affected by the proposed Project. However, there will still be certain impacts on the affected households especially those smaller percentage of households who will be affected by the loss of agricultural lands and crops and whose livelihood still depend on farming. For these households, the provisions of the REMDP are particularly targeted. 6. To ensure that issues associated with the Bidayuh are properly addressed by the project, this document is a Resettlement and Ethnic Minority Development Plan (REMDP) and addresses both Involuntary Resettlement and Indigenous Peoples Development. The document has been prepared to meet the requirements of ADB’s Safeguard Policy Statement.

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II. Project Description

A. Project Location 7. The 275/33kV Mambong Substation is located about 22 km south of Kuching, the capital of Sarawak. From here the transmission line will stretch due west from Mambong to Serikin, adjacent to Sarawak–Kalimantan International Boundary passing south of the Bau township (refer to Figure 1). 8. The Project bounds are:

109° 58' 15.0384" E - 110° 21' 19.7676" E 1° 18' 41.3172" N - 1° 23' 24.054" N

B. Project Concept 9. The proposed 275 kV transmission system will include:

Part A: Transmission Line A new 275 kV double-circuit transmission line from the existing 275/33 kV Mambong Substation to the Sarawak–Kalimantan International Border, i.e. the length of the proposed transmission line is approximately 38.6 km on Sarawak State.

Part B: Substation Construction of new 275 k V feeder bays at Mambong Substation which already exist (the substation component of the project will have no resettlement impacts).

C. REMDP Preparation and Efforts to Minimize Potential Resettlement

Negative Impacts

10. This REMDP is established based on a preliminary design provided by SESCO. A total corridor–of–impact (COI) of 40 meters for the transmission line is used as basis for estimating the scope of resettlement impacts. This REMDP is subject to updating following the final detailed design during implementation. An Initial Environmental Examination has also been prepared. 11. The final route selection will be completed early in the implementation phase of the project and will ensure that:

negative impacts of the transmission line project are minimized

wherever possible, residential areas and other sensitive areas (in terms of livelihood systems, customary uses and ecological significance etc) will be avoided

no more than 200 affected people persons experience major impacts based on the ADB definition (being physically displaced from housing, or losing 10% or more of their productive assets (income generating).

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FIGURE 1: Project Preliminary

Route

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III. Scope of Land Acquisition and Resettlement

A. Transmission Line Route 12. The proposed Project consists of a 275 kV high voltage transmission line and associated infrastructure. The line will commence at the existing substation at Mambong near Kuching in Sarawak, Malaysia and extend to Benkayang in West Kalimantan, Indonesia. The total length of the transmission line is approximately 120 km, with 38.6 km on the Sarawak side, and 81.4 km on the Kalimantan side. These lengths are subject to change during final sitting of the transmission line. On the Sarawak side (to which this REMDP relates) the total expected acquisition would be 40 m x 38.6km = 154 hectares. 13. Based on the concept design, there will be about 10 angle towers where the line changes direction. The coordinates of these angle towers are tentatively:

AT1A 1.352722 0N 110.355491 0E

AT1 1.360273 0N 110.327881 0E

AT2 1.360908 0N 110.283929 0E

AT2A 1.390015 0N 110.240967 0E

AT3 1.373416 0N 110.211090 0E

AT3A 1.359753 0N 110.157357 0E

AT4 1.366070 0N 110.130377 0E

AT5 1.363619 0N 110.087689 0E

AT5A 1.335714 0N 110.032532 0E

AT6 1.311477 0N 109.970844 0E

1. Towers

14. The transmission line conductor will be supported by steel lattice towers approximately 340 m apart (depending on terrain and location). In Sarawak, the typical height of towers will be less than 50.4 m and designed to maintain the clearance of 7 m to ground. Each tower base will be approximately 5 m by 5 m in size, with each of the four tower legs supported by foundations designed for the soil conditions at the site. Based on the transmission line length of 38.6km, approximately 113 towers would be required, with a total of 2,800 square metres.

2. Auxiliary Installations

15. The Project includes a new substation at Benkayang, extension of the existing substation at Mambong, together with associated infrastructure such as access roads, equipment and materials storage and assembly areas, facilities for workers and waste disposal.

B. Right-of-Way Alignment 16. A right-of-way with a width of 40 m (2 x 20 metres) in Sarawak will be established for the transmission line. This will require removal of trees and all structures within the right-of-way. No houses have so far been identified as requiring removal but as the alignment has not been

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finalised, this cannot be entirely ruled out even though the transmission line during final design will be sited to avoid houses as far as possible. The total land acquisition requirement will be approximately 154 hectares for the RoW (including tower bases).

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IV. Socio Economic Survey Methodology A. Collection of Primary Data

17. For purposes of SIA study and REMDP, the socio-economic survey focused on those areas within 3 km radius of the Project site. Collection of primary data for socio-economic study was carried out by means of socioeconomic surveys. 18. The purpose of the surveys was to gather information concerning the demography, village and household resources, existing facilities, services, communication infrastructure, economic activities, household income, local institutions, sensitive areas (burial grounds, cultural sites), communication sources and system, and views of different segments of the communities on the proposed Transmission Line Project. The field study will be undertaken by a team consisting of specialists supported by a number of field assistants and enumerators. 19. Information collection employed both the qualitative and quantitative approaches. In the qualitative approach, respondents’ personal views and observations were obtained. In the quantitative approach, information were collected by assigning numerical values to concepts under study and analyse it objectively. 20. Surveys of villages were carried out at two levels namely:

i. Village-level survey; and ii. Household-level survey.

21. In socio-economic surveys, both qualitative and quantitative information were gathered. The purpose of the village-level survey was to gather general information about the socio-economic profile of a village. The information to be elicited from a village will cover demography, local institutions, current situation of the village in terms of accessibility, mode of transport, occupation, available facilities and infrastructure, views and perceptions about the proposed Project and others. 22. The approach to gathering information on the village profile is by group interviews. The participants who form the key informants in the group interview in a village are:

the village heads

other community leaders, especially members of Village Security and Development Committee (JKKK)

heads of households, and

others who have knowledge of the village and its community.

23. The household profile surveys aim to elicit information from randomized selection of households on the sizes of households in each village, household resources (including land, workforce and others), gender ratio, economic activities, occupation, education level, dependency, migration, and others. 24. For village level surveys, all the villages in the 3-km affected zone were covered to ensure that the socio economic conditions of the potentially affected communities are understood to assist in minimizing impacts during final detailed design.

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25. For the household level surveys, only those villages in the 1-km radius affected zone were surveyed. In view of the high cost of carrying out a survey, a randomly selected sample from among the households of the villages in the Project were taken. In these household surveys, sample size of between 5% and 10% of the total number of households in the villages within the 1-km radius (which is a number far greater than the likely number of affected households) were randomly selected and interviewed. Given the small scale of likely impacts, this is considered sufficient for statistical analysis of the socio-economic situation of the communities in the Project area. A total of approximately 2,000 households exist in these villages (within a 1km radius of the concept centerline). Clearly not all of these households would be affected, however to ensure the socioeconomic survey achieved its objective of properly understanding the socio economic conditions of the community, a broad sample based survey of 141 surveys (7%) was completed. This will allow project design in a manner which reduces the overall impacts and particularly addresses key socioeconomic aspects of the community.

B. Eliciting the Views and Perceptions of Project Affected Communities

26. In conjunction with the surveys, dialogue sessions and discussions with the headsmen of the villages and other key informants as well as randomly selected household heads were organised. The information can complement that from the surveys. One of the main areas of focus in the dialogue sessions and discussions is concerned with the views and perceptions of the villagers about the proposed Project and its implications to their welfare and interests. These sessions also help to gauge the awareness of the local people about the Project as well as to clarify any misunderstanding about it. The dialogue and discussions aim to establish good relationships between the PAC’s and the Project Proponent.

C. Collection of Secondary Data 27. Demographic data of the affected villages were obtained from district offices, and population statistics from Department of Statistics, Malaysia. Base maps on land use, infrastructure and geo-physical features and finalised route of the proposed transmission line are obtained from LSD and SESCO. This information is useful for complementing the primary data collected.

D. Data Analyses 28. The quantitative data are to be analysed using the SPSS computer software programme while the qualitative data are sorted and analysed by an inductive method in seeking explanations of the phenomena under study.

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Socio economic surveys

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V. Socio-Economic Profile of Affected Households Socio-Economic Profile of Affected Communities

A. Introduction 29. Socio-economic surveys took two weeks to complete, started on the 14th March, 2011, and completed on 28th of March, 2011. The information analysed together with the secondary data from existing documents form the basis of the report on the socio-economic profiles of the affected communities, and these are discussed in the subsequent sections.

B. Regional Socio-Economic Profile 30. The proposed transmission line that is planned to pass through two administrative boundaries, namely Siburan Sub-district of Kuching District and Bau District is in the Kuching Division. 31. Kuching Division is one of the most developed divisions in Sarawak. The division consists of three (3) Districts (i.e. Kuching District, Bau District and Lundu District) with a total population of 673,000 in year 2007 (Dept. of Statistics, 2007). Kuching District has several advantages over other divisions in terms of industrial activities, agriculture, infrastructure and educational services. Kuching City, the State Capital of Sarawak exerts a strong influence as an administrative, commercial, financial and service centre over the whole Division. 32. Siburan, which is about 28 km by road from Kuching City is the administrative head office of Siburan Sub-district; and Bau which is about 35 km by road from Kuching City is the administrative headquarters of Bau District sharing a common border with Kalimantan Barat, Indonesia. 33. The municipal services (including sanitary services, street lighting, promotion of local tourism, etc.) for Siburan are under the Padawan Municipal Council (MPP) which has an estimated population of 178,500 people according to official statistics (Dept. of Statistics, 2000); on the other hand, the total population of Bau District as at 2000 was 41,824. The demographic features of both regions are given in Table 2Table below.

Table 2: Total Population by Gender and Households for Bau District

and Padawan Municipality, 2000 Region Total Male Female Households Living

Quarters Person/ HH

Sex Ratio

MPP 17850 91,588 86912 35,490 41,318 5.02 1.05

Bau D.C. 41,824 21,499 20,325 79,41 9,351 5.27 1.06 Source: Department of Statistics, Malaysia, 2007

34. Siburan Sub-district is served by the Kuching-Serian trunk road that forms part of the Trans-Borneo Highway running through other Divisions in Sarawak. For Bau District, Bau town can be reached by road through the old Bau-Kuching Road via Kota Sentosa or by the Kuching-Bau-Lundu Road, which form part of the Trans-Borneo Highway via Batu Kawa.

C. Number Of Affected Villages in Siburan Sub-district and Bau District 35. The proposed transmission line that is planned to pass through two administrative boundaries, namely Siburan Sub-district of Kuching District and Bau District will affect a total of

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27 villages along the 6-km wide corridor where the transmission line is supposed to pass through; 11 villages in Siburan Sub-district (under MPP), and 16 villages in Bau District.

D. Demographic Features

1. Population, Household, Household Size And Gender Ratio

36. There were 3,060 households with 16,187 people living in these 27 villages in the 3-km radius; and within the 1-km radius, there were 2,023 households with 10,587 people. The average household size was about 5.3 persons per household. The gender ratio of males to females was 0.93:1 indicating that there were slightly more female than male in these villages. The higher proportion of female from the surveys could be attributed to the out-migration of a number of male working in other places outside the villages.

2. Ethnicity and religion 37. Most of the villagers in the affected settlements are predominantly Bidayuh (95%) with small proportions of Chinese, Iban and Malays who are tied to the villages by marriage. In Kampong Sinar Baru, there were higher proportions (about 20%) of Malay, and Chinese with a small proportion of Iban; in Batu 15 Kampong Bratan Asal, the population were mostly Chinese. Majority of the population are Christians and as such, a village chapel is usually a prominent feature in most villages. Very small proportions of the population were found to have possessed the faiths of Islam, traditional Chinese religion, Buddhism and Traditional Bidayuh religion which is a diffuse collection of beliefs and rituals, largely related to the paddy cultivation cycle.

3. Types of Living Quarters 38. In the 27 villages, most of the houses were of single-storey or double-storey detached types, made of timber or semi-timber and concrete structures.

Double storey concrete house Stall set up in front of residential unit

4. Communication Modes 39. All the 27 affected communities are accessible by tar-sealed or gravel roads. As such, the predominant mode of communication between the nearest service centres and the villages is by vehicles; either using public transport or own vehicles. With good road system linking the service centres and various villages, a great proportion of the villagers own a car and

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motorcycle. The surveys revealed that 86% of the respondents owned a car, and smaller proportions of the villagers owned a pick-up or van. 40. Motor vehicles are a necessity especially in areas where public transport service is not so well developed and regular. There are buses plying from Lundu to Bau and Kuching as well as between Serian and Kuching via Siburan, but these services are not very frequent. However, there are private vans plying between villages and the service centres of Bau, Siburan and Kuching to complement the normal bus services.

Road condition to Kg. Serikin

E. Utilities, Facilities And Services 41. On the whole, the essential facilities and services that affect the quality of life in the villages in the two regions are in quite a satisfactory state. The main features of facilities and services are summarised below.

1. Water Supply 42. Most of the affected villages have gravity-fed water supply. In Siburan, treated water supply from Kuching Water Board or Public Works Department is available to 5 villages; while the rest are installed with gravity-fed water supply system. In Bau District, 4 villages had to depend on river water and rain water to complement their water supply by gravity-fed system as the sources of water were inadequate to meet the villages’ requirements. Only one village did not have gravity-fed water supply system presumably there was no reliable water source.

2. Electricity Supply 43. All the villages had electricity supply from the SESCO power line with the exception of a very few households in two villages (Kampong Puak and Kampong Seroma in Bau District) relying on generator sets for power supply.

3. Telecommunication Facilities and Services 44. Communication of information is by means of radio, TV, mobile phone and newspapers, friends and relatives working outside the villages and occasionally government officers. Radio,

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TV, friends and relatives are usually the ones most relied on for news and information outside the villages. 45. All the 27 villages were able to use the mobile phone services, and fixed-line telephone facilities were only available to 3 villages. Although more and more villagers own mobile phones, they have limitations in reception as most of the villages are not covered by the telecommunication networks. Newspapers are also limited in their circulations.

4. Sanitary Facilities and Services 46. Sanitary facilities, toilet and waste disposal services were in satisfactory state. Households in all villages were equipped with proper toilets using pump or pour-flush systems. The use of pour-flush latrines provided by the Department of Health is seen in all the villages. Most of the villages, especially those in more accessible areas and closer to the administrative head offices of the local councils are provided with rubbish collection service. For those villages without the services of the local councils, disposal of rubbish is by means of rubbish pits and/or burning.

5. Health Facilities and Services 47. For the villages in the Siburan area, the villagers go to the Health Clinic annexed to the Rajah Charles Brooke Memorial Hospital at the 13th Mile Kuching Penrissen Road. The clinic is staffed by Hospital Assistants, and nurses to cater for mild ailments and maternity and child health care services. For serious case they refer them to the Doctors in the Hospital and Kuching General Hospital. Some patients would seek treatments at private clinics at Kota Penrissen (10th Mile Kuching Serian Road), Kota Sentosa (7th Mile Kuching-Serian Road) or Kuching City. 48. For the villages in Bau District, the villagers go to the nearby clinics at Krokong, Serasot, or Bau Town for mild cases and maternity and child health care services. For serious cases, they go to the Bau Hospital or Kuching General Hospital. Sometimes, the villagers go to the private general medical practitioners at Bau or Kuching. The general hospitals at Bau provide both preventive and curative services. However, those who require further specialist treatment are sent to the Kuching General Hospital.

6. Education Facilities and Services 49. All the affected villages have access to primary schools which are located nearby. For secondary education, the children have to attend the secondary schools in Siburan or Bau. Only few villages have kindergarten classes for their pre-schooling children. These classes are run by KEMAS (Federal Department of Community Development) or Chinese schools.

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Some of the schools found within the study area

7. Community Halls And Places Of Worship 50. Almost every village has a community hall which is an important institution for meetings and indoor social activities such as during Gawai. In addition, almost every village has a chapel.

Churches are common in the study area

Multipurpose Hall at Kg. Git Chinese Temple

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F. Burial Grounds and Cultural Sites 51. A number of burial grounds have been identified along the 6 km corridor of the transmission line. Based on the information that has been collected from the surveys, they are quite near the villages, usually behind the village church. Based on the information on the transmission line alignment (Figure 1) and the descriptions of the locations by the respondents in the villages, the proposed transmission line would not run as close as within 30 meters from existing burial grounds. 52. No cultural sites belonging to the villages were identified.

Cemeteries are normally located adjacent to the churches

G. Land Ownership and Land Use 53. The land uses along the transmission line corridor were first approximated from the Land-use Maps that were published by the Land and Survey Department as a scale of 1:500,000 (Sarawak Series No. 8, Edition 7). These 1:500,000 land-use maps were, however, mainly based on the interpretation of aerial photographs taken in the 1970s. 54. Land use assessment refinement was undertaken using the latest satellite imagery and supported by ground verification along the entire line. The satellite images were first interpreted to distinguish between the primary forests and the non-primary forest areas. Newly cleared areas were very easy to identify and map. Major settlements and townships were also discernable. 55. The data extracted from the land use maps were updated by overlaying a second layer of information on the oil palm, forest/tree, and any other plantations that are located within the 6-km corridor (3 km on each side of the transmission line). This information is gleaned from the various EIA reports that had been submitted to the NREB for review and approval. Relevant up-to-date information was also sourced from Government Departments and land development agencies such as Sarawak Land Consolidation and Rehabilitation Authority (SALCRA). 56. The types of land use that the proposed transmission line passes through are summarized in Table 3.

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Table 3: Land Uses along the Proposed Transmission Lines

Land Use Total Area Traversed (Ha)

Within 1 km Within 3 km

Ha Percent (%) Ha Percent (%)

Primary Vegetation (Various Stage)

326 2.97 1,226 4.52

Mature Secondary Forest 3,245 29.57 8,204 30.28

Shifting Cultivation (Various Stage)

4,343 39.57 10,992 40.57

Oil Palm Development 2,597 23.67 5,330 19.67

Wet Paddy 0 0 191 0.71

Residential Areas 456 4.16 1121.98 4.14

Industrial Areas/ Airport 6.65 0.06 31 0.11

Total 10973.65 100.00 27095.98 100.00

57. Based on the site investigation and surveys, the proposed transmission line do not pass over any towns or major settlements, though the 6-km study corridor does encompass many villages. The transmission lines will traverse residential areas up to approximately 4.16 % and 4.14 % in 1 km and 3 km study corridor respectively. Bau and Siburan towns are just outside 3.0 km from the line route. Near Mambong, there is a major prison and a police training centre. There are several schools, clinics, cemeteries and small churches in the vicinity of the transmission line corridor. As for industry, there is a clinker factory near Mambong substation and an integrated waste management facility situated approximately 2.5 km away from proposed transmission line. 58. The proposed alignment goes through areas with a long history of agriculture and small holder tree cropping, but where the increasing level of off farm employment has rendered larger areas fallow than before. The sizes of land owned by the households are relatively small varying from one hectare to five hectares. Certain villages have surrendered their land to SALCRA for oil palm plantation development, and in return they get a share in the dividends. Based on the data collected in the surveys, there are very small proportions of the households who did not have land for farming and they depended solely on non-farming employment for their livelihoods. 59. Overall, there are no forestry concessions in the area but there is one major oil palm development (Sarawak Land Consolidation and Rehabilitation Authority, SALCRA) near the international boundary at Serikin. The transmission line will traverse Oil Palm Plantation (OPP) areas add up to approximately 23.67% and 19.67% between 1 km and 3 km study corridor respectively. Most of these OPPs are in their early stages of development. Moreover, oil palms are only recommended to be planted on slopes of less than 25º. Thus, within a hilly area earmarked for OPP development, there are often patches of land that are too steep for planting. Such areas are left undisturbed under forest covers. In areas that had been established, the palms are young, meaning that they are not very tall yet. Most of palms would still be less than 5 m tall. Oil palms can grow to a height of 12 - 15 m before they are culled and the areas replanted for another cropping cycle.

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60. Besides oil palm, general agricultural uses are the most common land uses that are encountered along the proposed line route. Shifting cultivation areas are most extensive, accounting for 39.57 % (within 1 km) and 40.57 % (within 3 km) of the route traversed by the line route. Shifting cultivation areas actually contain all lands that had been subjected to at least one cycle of slash-and-burn hill paddy cultivation, and that the actual field conditions may range from a newly cleared situation to old secondary forest with trees of considerable girth and height. 61. Apart from the hill paddy-based system of shifting cultivation, the mature secondary forest in Sarawak is grown on a more permanent basis. The transmission lines will traverse mature secondary forest add up to approximately 29.57 % and 30.28 % in 1 km and 3 km study corridor respectively. On the other hand, the primary vegetation inh various stages is accounting for 2.97 % (within 1 km) and 4.52 % (within 3 km) of the route traversed by the line route. Most of primary forests in Sarawak are no longer in their primary, pristine conditions because they had been selectively harvested previously. 62. Pepper, wet paddy, rubber, cocoa and horticultural crops may be locally important in certain areas; they are most commonly seen along the route. This wide range of crops is cultivated on a small-holder basis with scattered individual farms often too small to be mapable at 1:500,000 scale. Some of the farmer harvests the crops for own consumption rather than selling it to market.

H. Economic Activities and Employment

1. Age Structure, Schooling and Employment Situations

63. Table 4 below derived from the analysis of the data of the surveys provides the following information:

(i) The total percentage of surveyed household members in the age groups below the age of 20 years was about 39%. These groups consisted of young members who were supposed to be in school, at the pre-school stage or still toddlers (see column (3)).

(ii) The table shows that for each schooling age group, not all members of the surveyed households in that age group were attending school. The percentages of school attendance in all school age groups varied between 62.2% in the 7 years –12 years age group (primary school education) and 90.9 % in the 13 years – 15 years (lower secondary school) (see column (5)).

(iii) The total percentage of surveyed household members in the age groups between 18 years and 64 years was about 65%; this is a fairly large proportion in the population of the affected villages; and this is where the active workforce is found (see column (3)).

(iv) In each of the working age groups (from 18 years to 64 years), only a portion of the household members were working; the proportion in each group varied between 33.3% and 54.3% (see column (7)). Greater proportions of the working household members were in the older age groups between 24 year and 64 years. Those not working were mainly those who became full-time housewives, who were physically handicapped by sickness or temporarily out-of job.

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Table 4: Age Structure, Schooling and Employment Age Groups in sample of 141

household respondents

Number in an age group

As % of total population in households

surveyed (141)

No. Schooling

As % of number in age

group

No. Working

As % of number in age group

Remarks

(1) (2) (3) (4) (5) = (4)/(2) (6) (7) =(6)/(2)

0-3 46 5.6 -

4-6 43 5.2 30 70.0 Kindergarten age

7-12 82 9.9 51 62.2 Primary school age

13-15 44 5.3 40 90.9 Lower Secondary school age

16-17 31 3.7 23 74.2 1 3.2 Upper secondary school age

18-19 18 2.2 5 27.8 6 33.3 Pre-uni age/working

20-23 64 7.7 11 17.2 22 34.4 University/ Working age

24-30 149 18.1 1 0.7 66 44.3 Working age

31-39 132 16.0 - 0 69 52.3 Working age

40-55 125 15.1 - 0 64 51.2 Working age

56-64 48 5.8 - 0 26 54.2 Working age

65 & above 45 5.4 - 0 18 40.0 Pre-retirement /retirement age

Total 827 100.0

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2. Types of Household Economic Activities 64. The household economic activities are characterised by a mix of farming and non-farming employment including farming, cash-earning employment, self-employment, and small-scale business enterprises. They are described below.

a. Farming Activities 65. The proportions of households engaged in farming based on the household surveys of

all affected villages within 1-km radius are given in the Table 5 below.

Table 5: Engagements in Agriculture Engagements in Agriculture As % of Total Respondents (141)

Households

Full-time 12.1

Part-time 37.6

Not farming 50.3

Total 100.0

66. The table indicates that about 50% of the households were not depending on farming as a means of livelihood. For those who were engaged in farming, only about 12% of the households were engaged in full-time farming while about 38% were engaged in part-time farming. Those engaged in farming were predominantly those in the older age groups of above 40 years, and who did not have formal education or had very low level of education. The data from the household surveys show that, for a majority of the affected villages, other non-farming employments appeared to play significant roles in the current household economy. 67. As revealed by the surveys, the present farming activities are characterised by hill and wet paddy planting , cash crops of rubber and pepper, smallholder oil palm and small-scale cultivation of other food crops, such as vegetables, fruit trees, and other annual field crops. Food productions are mainly for own consumption with excess for sale. Fruit trees especially durian can be a significant source of household income. With the present favourable prices of rubber, tapping of rubber has become more remunerative to the farmers in spite of the fact that most of the trees being harvested are older generation varieties. In view of high labour requirements for maintenance and high cost of agro-chemicals, cultivation of pepper is usually on small scale, about 0.1 to 0.2 ha per household. Smallholder oil palm estates (1 to 2 ha) are located near SALCRA oil palm plantation to tag on the processing and marketing facilities of the institution. There are not many smallholder oil palm estates as most of the land available have been managed by SALCRA for oil palm development scheme. Other subsidiary farming activities include small-scale livestock rearing (pig and poultry) and freshwater fishpond culture. Certain proportions of the households are doing part-time farming and the rest of their time is engaged in non-agriculture activities.

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Small scale hill paddy planting are one of the important food crops planted for subsistence purpose.

Oil palms is fast becoming the important cash crops in the study area.

Rolling limestone hills are common sight at the Project area.

Mambong Clinker Plant Rows of stalls at Kg. Serikin which are rented out to Indonesian traders. These stalls only operate on weekend.

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b. Non-farming Activities

i. Wage-Earning Employment 68. The proportions of households having members engaged in wage-earning activities as

indicated in the surveys are shown in

Table 6 below; and they indicate the present trends of the employment situation in the study area that a great majority (70.2%) of the households have members engaged full-time in wage-earning employment, while a very small proportion (1.4%) is engaged in part-time employment.

Table 6: Engagements in Wage-Earning Employment Engagements in Wage-Earning

Employment As % of Total Respondents (141)

Households

Full-time 70.2

Part-time 1.4

Not employed 28.4

Total 100.0

69. Non-farming wage-earning employment include employments in government services, private sector, contract works, running sundry shops, construction industry, catering industry, carpentry works, transport business and others. The younger and more educated members of the households are more inclined to seek employment in non-farming forms of employment especially in government services and private sector as they are more remunerative than farming. In some villages, there are higher proportions of household members engaged in non-farming than farming activities. 70. It should be pointed out that, in view of the close proximity of the villages to the places of work in Kuching City and Bau Town, most of the villagers commute daily between their villages and Kuching or Bau. Some proportions of the household members are working outside Kuching; their places of work include Miri and Peninsular Malaysia.

ii. Self-Employment 71. Self-employment activities include carpentry, masonry works, house-building, boat

building, and others. Some are carried on ad hoc contract basis. The proportions of households

having members engaged in these activities are small as indicated in the results of the survey

data summarised in the Table 7 below; 5.0% full-time and 2.1% part-time.

Table 7: Engagements in Self- Employment Activities

Engagements in Self-Employment As % of Total Respondents (141) Households

Full-time 5.0

Part-time 2.1

Not employed 92.9

Total 100.0

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c. Business Activities 72. The survey revealed that the proportions of households having members engaged in

business are small; with 1.4% engaged in full-time business activities and 3.6 % in part-time

business activities. (See Table 8 below). The business activities were of small and medium

scales including sundry shops, contract works, catering business, cross-border trading business

between the Sarawak and Kalimantan (Indonesian) borders at Kampong Serikin.

Table 8: Engagements in Business

Engagement in business As % of Total Respondents

(141) Households

Full-time 1.4

Part-time 3.6

Not engaged in business 95.0

Total 100.0

3. Educational Levels of Working Groups

73. The proportions of educational levels of a total of 359 members of the working group in

the total surveyed households are given in Table 9 below.

74. The table indicates in general a high proportion of workers having some form of education in the survey households–totalling 94.6% of the total number of members of the survey households. The highest proportion (40.9%) of the working members had attained SPM (or Malaysian Certificate of Education or passed Form 5 equivalent) level. They usually belonged to the technical and sub-professional working group in the employment market. The second highest proportion (16.7%) was the group who had attained primary educational level; they usually belonged to the unskilled or semi-skilled working group. The third highest proportion was the working group attaining SRP level. There were about 9% of the workers holding tertiary education qualifications; they usually belonged to the executive, managerial or professional working groups.

Table 9: Education Levels of Working Groups

Educational Level Percentage of Total Working

Members (359) in 141 Surveyed Households (%)

4. SPM** (passed Form 5) 40.9

1. Primary education 16.7

3. SRP* (Passed Form 3) 11.4

2. Form 3 8.4

5. STPM*** (Higher School Certificate) 7.8

No formal education 5.6

7. Degree 4.7

6. Diploma 4.5

Total 100.0 SRP* – Sijil Rendah Pelajaran; SPM** – Sijil Pelajaran Malaysia (Passed Form 5) STPM*** – Sijil Tinggi Pelajaran Malaysia (Higher School Certificate)

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4. Estimated Household Cash Incomes 75. Estimates of household incomes from various sources are based on the survey of 141 households. The main sources of household cash incomes are from farming, employment in government services and private sector, own business and odd jobs, dividends from participating in SALCRA oil palm plantation and remittances from members working away from Kuching. The household cash incomes depend on the types of employment and the number of working members. From the data available from the current surveys, the estimated household incomes range between RM600 and RM5,000 per month with the average of about RM1,100 per month. Non-farming employment including employment in government services and business enterprises provide much higher incomes than farming.

5. Farm Income 76. Based on the surveys of the 141 households, the proportions of households in the various farm income brackets are shown in Table below. The bulk of the respondents were in the monthly income brackets between RM100 and RM400 per month, with the lowest income bracket of RM100 – RM400 per month having the highest proportion (of about 28%). A small proportion (11.3%) of the respondents was in the income bracket of RM830 – RM 1,500 per month (the present official the poverty line index level for rural area in Sarawak is RM830 per month for a family of 4.5 persons). There was a much smaller proportion (1.4%) of the respondents whose monthly farm income exceeded RM1, 500. Presumably, they had larger area of cash crops, and bigger share of the SALCRA oil palm scheme.

Table 10: Monthly Farm income Farm income range

(RM per month) As % of Total Respondents of 141

100 - 400 27.7

401-829 15.6

830-1500 11.3

1501 & above 1.4

Total responded 56.0

Not engaged in farming/no response 44.0

Total 100.0

77. The main cash-generating farming activities are rubber, pepper and oil palm. Therefore, cash income from farming depends on cash crops while food crops contribute very little to the household cash economy. Those households having larger areas of cash crops (due to bigger resources of labour force, land and capital will tend to have higher farm income.

6. Non-Farm Incomes

a. Incomes From Wage-Earning Employment

78. Table 11 below derived from the surveys indicates the proportions of respondents in the various monthly income brackets. The levels of income from wage-earning employments depended on the types of jobs; the higher income groups were those respondents who were working in the executive and managerial level in the public and private sectors with monthly incomes above the RM 1,500 per month brackets. They constituted highest proportion of the total surveyed households – about 29.8%. Smaller proportion of the respondents was earning below RM 800 per month; and they constituted about 21.3% of the surveyed households; they

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belonged to the unskilled or semi-skilled group of workers. Smaller proportions of 15.6% were earning between RM 811 and RM1,500 per month; and they belonged to the technical or skilled group of employees.

Table 11: Income From Wage-Earning Employment Income Range (RM per month)

As % of Total Respondents of 141

450 - 829 21.3

830-1,500 15.6

1501-2,000 7.8

2001 – 5,000 22.0

Total responded 66.7

Not engaged in wage-earning employment/ no response

33.3

Total 100.0

b. Incomes From Self-Employment

79. Based on

Table below, small proportions (totaling 6.3%) of the surveyed households who were engaged in self-employment activities earned incomes above RM830 per month. A smaller proportion of 4.3% earned incomes between RM250 and RM800 per month.

Table 12: Income from self-employment Income range

(RM per month) As % of Total Respondents Of 141

250 - 800 4.3

830-1,000 3.5

1001-1,700 2.8

Total responded 10.6

Not participating in business 89.4

Total 100.0

7. Incomes From Business Activities

80. From the small proportions (8.5%) of respondents in the surveys, majority of those who

were engaged in business were small-scale businessmen with monthly earning of less than

RM500 per month. The smaller proportions of businessmen earned between RM 800 and

RM1,500 per month. The breakdown by income bracket is given in Table 13 below.

Table 13: Incomes from business Income range

(RM per month) As % of Total Respondents of 141

100 – 500 5.0

800-1,000 2.8

1001-1,500 0.7

Total responded 8.5

Not participating in business /no response 91.5

Total 100.0

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8. Household Expenditures 81. Major household expenditures include food, household necessities, transport, education, utilities (electricity and water) and medical services. The highest expenditure item is on food. Based on the data available from the current surveys, the average household expenditures are estimated to be as in Table 14 below.

Table 14: Household Expenditures Expenditure Items Range Of

Expenditures (RM/month)

Average Expenditures (RM/Mth)

Majority (%) In Expenditure Bracket

1. Foods 100 – 1,000 408 90.8 % in bracket RM100 – RM700/mth

2. Education 30 – 1,000 187 55.2% in bracket RM30 - RM300/mth

3. Medical expenses 10 – 500 87 78.0% in bracket RM10 - RM300/mth

4. Transport 15 – 500 217 71.6% in bracket RM15 – RM300/mth

5. Utilities & household necessities

25 – 400 131 91.5% in bracket RM 25 –RM300/mth

Average total monthly expenditures

180 – 1,500 843

82. The distribution of household expenditures as depicted in Table 14 above (from surveys)

shows that the total average household expenditures was about RM843 per month and that the

monthly expenditures ranged between RM720 and RM1,000. Food item was taking up the

highest proportion of the monthly expenditures average about RM408 per month. It could have

been less for those who grow their own paddy and vegetables. Expenditure on transport was

the seconded highest expenditure item representing about 26% of their monthly expenditures

mainly attributed to high cost of petrol and maintenance of their own vehicles. Expenditure on

education constituted about 22% of the average total household expenditures placing it the third

highest household expenditure item.

9. Migration 83. Based on the surveys of the 141 households among the affected villages, 83 households

had members migrated out of the villages, representing 58.9% of the total surveyed households.

As seen in Table 15 below, there were a total of 162 members migrated out from these 83

households at the average of nearly 2 persons per households.

Table 15: Migration No Of HH Having

Migrated As % Of Total

Household Surveyed (141)

Total Number Migrated

Average Number Per Household

83 58.9 162 1.95

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84. The main reasons for the out-migration included outside employment, following spouses

and schooling. The destinations of out-migration are given in the Table 16 below. The table

indicates that the great majority of migrants (totalling about 91%) resided in Peninsular Malaysia

and main towns in Sarawak.

Table 16: Destinations of out-migrations

Destinations As % Of Total Out-Migrating Members Of

Surveyed Households

1. Peninsular Malaysia 50.0

2. Main towns in Sarawak 41.1

3. Sabah 3.8

4. Singapore 3.8

5. Outside Malaysia 1.3

Total 100.0

10. Involvement in Local Institutions

85. There are some local institutions that are in existence in the Project affected villages.

They are indicated in Table 17 below.

Table 17: Local Institutions in Villages Types of Local Institutions Remarks

Village Security and Development Committee All villages

Area Farmers’ Organisation Most villages

Women fellowship Some villages

RELA Some villages

Recreation and Social Club Some villages

Youth Fellowship Some villages

ICT Club Some villages

Saberkas Some villages

Women Bureau Some villages

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VI. Indigenous People: Specific Issues A. Vulnerability Assessment

86. Most of the villagers in the affected settlements are predominantly Bidayuh (95%) with small proportions of Chinese, Iban and Malays who are tied to the villages by marriage. In Kampong Sinar Baru, there were higher proportions (about 20%) of Malay, and Chinese with a small proportion of Iban). 87. Majority of the population are Christians and as such, a village chapel is usually a prominent feature in most villages. Very small proportions of the population were found to have possessed the faiths of Islam, Traditional Chinese religion, Buddhism and Traditional Bidayuh religion which is a diffuse collection of beliefs and rituals, largely related to the paddy cultivation cycle. 88. The Bidayuh is one of the many major ethnic groups in Sarawak, mostly concentrating in Kuching Division; and it is a majority group in the Siburan Sub-district, Bau District and Lundu District of Kuching, as well as Serian District of Samarahan Division. In Kuching Division, it is the third largest ethnic group after the Chinese and Malay, however outside the urban areas is the predominant ethnic group as the Chinese and Malays are heavily concentrated in the urban areas. 89. In the proposed Project area, the Bidayuh are more economically well-off than most rural indigenous communities in Sarawak and, as well as being the dominant community in the project area, are also, from a socio-economic perspective, significantly less vulnerable. This is demonstrated by their relatively high incomes from wage-earning employment and other non-farm remunerative economic activities. 90. Based on the socio-economic surveys, Only 12% of households depend on agriculture for their livelihoods, with another 38% engaged in part-time farming. This trend is attributed to a change in the socio-economic landscape characterised by greater employment opportunities in the non-farming sector, better access to formal education and better communication system. 70% of the households have at least one member engaged in full-time wage earning employment. The SIA found that 86% of households own at least one car. 91. Moreover, there is a relatively high proportion (58% from surveys) of the workforce having attained a high level of education of at least SPM (completion of high school).. Over 20% have achieved a tertiary qualification. This group of workforce are holding remunerative jobs in the technical and sub-professional working group; and those at the tertiary educational level they are holding jobs in the executive, managerial or professional working groups in the employment market. 92. There are high proportions of household members engaged in non-farm employment, and this is attributed to high educational attainment and the broad economic base of the locality. In addition, the communities have access to essential facilities and services (water supply, electricity supply, telecommunication and postal services) that affect the quality of life. 93. Importantly, the communities in the project area have good accessibility to urban services and facilities. The communities are peri-urban in nature due to their location very close (within daily commuting distance) to Kuching which has a very broad economic base including numerous employment opportunities in many industries that are major employment generators;

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in the public sectors, government agencies, schools, military and police; in the private sector, catering industries, transportation industries; manufacture industries, construction industries, and others. 94. In view of these socio-economic settings of the affected communities, the level of vulnerability is very low, and would not be negatively affected by the proposed Project. However, there will still be certain impacts on the affected households especially those smaller percentage of households who will be affected by the loss of agricultural lands and crops and whose livelihood still depend on farming. For these households, the provisions of the REMDP are particularly targeted.

B. Specific Considerations

95. ADB’s Safeguard Policy Statement (Safeguard Requirement 3–Indigenous Peoples outlines the requirements that borrowers/clients are required to meet in delivering Indigenous Peoples safeguards to projects supported by ADB. The policy requirements are designed to safeguard Indigenous Peoples rights to maintain, sustain, and preserver their cultural identities, practices, and habitats and to ensure that projects affecting them will take the necessary measures to protect these rights. 96. SR 3 is triggered if:

“…a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the natural resources that Indigenous People own, use, occupy or claim as their ancestral domain”

97. Based on the socio-economic data gathered, it is considered that the project will not impede rights to maintain, sustain, and preserver their cultural identities, practices, and habitats. Similarly, given the small reliance on land based livelihood systems, it is considered that any impacts on these aspects would be minimal. 98. It is noted that project activities will not include:

(i) commercial development of cultural resources and knowledge of Indigenous Peoples

(ii) physical displacement from traditional or customary lands; or (iii) commercial development of natural resources within customary lands.

99. Notwithstanding the above, it is considered that SR 3 is triggered for the purpose of this project. 100. SR3 recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. The IP policy objectives are to:

(i) design and implement projects that fosters full respect for IP's identity, dignity, human rights, livelihoods systems, and cultural uniqueness as defined by IP themselves and

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(ii) ensure that IPs receive culturally appropriate social and economic benefits, do not suffer adverse impacts as a result of projects, and can participate actively in projects that affect them.

101. In any ADB interventions, the approaches to be used are as follows:

(i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples;

(ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts;

(iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and

(iv) the mechanisms for any intervention must be transparent and should ensure accountability.

102. At present, the route of the transmssion line has not been finalized, and only a likely corridor of impact (COI) has been identified. Accordingly, the key approach to ensuring the requirements of SR3 are fully satisfied will be through meaningful consultation. SPS defines Meaningful Consultation as:

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

103. Consultation has started early in the process, with substantive consultation having been carried out to date, well before the route is finalized. During the detailed design of phase of the project, meaningful consultation will be continued so that affected people have an opportunity to influence the route alignment (and therefore likely impacts) associated with the transmission line.

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VII. Gender Issues

A. Vulnerability Assessment 104. Socio-economic surveys in the Study area have indicated that females slightly exceeded males by a ratio of 1.07 to 1. Women in the Bidayuh community in general have equal access as their male counterparts to the various services and employment opportunities that would enhance their human capabilities; they include education, employment, health care and inheritance of family properties especially land. 105. A great portion of the young women workforce are employed in the public and private sectors as government servants, employees of private companies, in service industry (including hotel, restaurants, tourism, retail shops, etc), in factories, in transport industry, etc. As a result of the employment opportunities available to women, there has been a trend of declining women population working in farms which is much less remunerative than wage-earning employments.

B. Special Considerations 106. Notwithstanding the above, the following measures to assist APs affected by the subprojects will target women’s needs and issues in the following ways:

If APs opt for replacement land as compensation for affected assets, the names of the husband and wife will be included on the LURC in cases where the AP head is married;

Women will be included in the resettlement process by the Government to facilitate the resettlement planning and implementation process;

Separate consultations will be held with women from severely affected and poor APs along the T/L corridor, to identify their needs and to involve them in the updating and implementation of the REMDP; and

Women as well as men from severely affected and poor APs will be given priority for employment related to civil works for the transmission lines.

107. During the updating of the plan and once the effects on productive land are known, the measures to support and restore the livelihoods of all severely affected APs will be identified in consultation with them. Separate consultations will be held with female headed APs that are severely affected through impacts on their productive land to determine if any additional measures or specific assistance is required to address the needs of poor or vulnerable female headed APs.

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VIII. Consultation and Information Disclosure

A. Stakeholders 108. There are six (6) main stakeholders associated with the proposed Project. They are as follows:

(i) Communities in the vicinity of the proposed transmission line that will be affected by the proposed Project, especially in the loss of land assets and crops and cultural assets such as the burial grounds and cultural sites. These stakeholders are the main focus of the SIA study.

(ii) Land and Survey Department (LSD) which is administering land matters, and enforcing the Sarawak Land Code on behalf of the Sarawak Government to ensure proper land use. It will play its role in determining land status of the lands affected by the proposed Project and the rates of compensation for the loss of land and assets associated with this loss as well as administering the payment of compensation for the affected communities.

(iii) Natural Resources and Environment Board (NREB) which is enforcing the Natural Resources and Environment Ordinance (NREO). The agency is responsible for protecting and managing the environmental quality and natural resources of the State. The areas of jurisdiction include agriculture, livestock, aquaculture, forestry, mining, housing and road construction and other infrastructure development that would affect the environment. The agency will be responsible for evaluating the EIA and ensuring that the recommended mitigation measures and other requirements for protection of the environment and natural resources are adhered to by the proponent (i.e. Syarikat SESCO Bhd).

(iv) Sarawak Energy Berhad (SEB) which is the client responsible for implementing the Project. SEB is a company set up by the State Government to establish and operate electricity supply system in Sarawak through its own subsidiary company, Syarikat SESCO Bhd which is responsible for the smooth implementation of the proposed Project.

(v) Offices of Bau District and Siburan Sub-district (Kuching District). These front-line government agencies will be responsible for assisting in the settlement of grievances and disputes brought up by members of the affected villages.

(vi) SALCRA, a statutory body responsible for the development of NCR land operating a few oil palm estates and a mill in the vicinity of the proposed transmission line; they will lose some area of land and crop due to the proposed transmission line.

109. These stakeholders will come later into picture in the social impact assessment study.

B. Views and Perceptions of the Affected Communities

110. Dialogue sessions were also held with the representatives of the village headmen, Village Security and Development Committee (VSDC) members, and some household heads of the Project Affected Families (PAFs) and other key informants in order to understand community’s response to the Project, perceived benefits and impacts, local needs/options, project options and choices. During detailed design of the transmission line, the views and perceptions of the village headmen and villagers who participated in the dialogue will be addressed in detail. Again, this information is designed to ensure the detailed design process is properly informed so as to avoid and minimize impacts, and to ensure thorough consideration of

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the issues raised by the community during consultation. Issues raised are summarised as follows:

i. The proportion of the affected households who heard about the proposed Project was quite low; only about 28% of the respondents had heard of the proposed Project.

ii. For those who were aware of the proposed Project, they heard the news from radio, television, newspapers, village headmen, other villages, SESCO personnel doing the assessment of electricity meter reading, and Land and Survey staff. In terms of the number of people receiving the news about the proposed Project, the village headmen was the most important disseminator of information making about 40% of the total contributions to the dissemination of information.

iii. For those who heard about the Project, majority (about 58%) received the news recently, less than a month ago; while about 17% heard about the news between one month and one year ago; about 14% heard about the news one to 5 years ago; and about 11% heard about the news 5 – 10 years ago.

iv. On whether they agreed with implementing the proposed Project, about 52% did not agree with the implementation of the proposed Project; smaller proportion of about 37% agreed with the Project; a smaller proportion of about 10% of the respondents were not sure; and there was a very small proportion of about 1% who did not respond.

v. Majority (about 82%) of respondents expressed their fear that they would lose their land, especially their farm land and land for their houses (if the transmission line was to pass through their land). Moreover, if their land was affected they also feared that there might not be any compensation from the government for the loss of land.

vi. On whether the loss of land due to the proposed Project would adversely affect their household income, the opinions were mixed; about 55% of the respondents did not think it would affect their household income; while 45% thought it would.

vii. On the question whether the proposed Project would benefit them or not, majority did not see that the Project could benefit them.

viii. One village made the suggestion that the government should pay compensation for the land used for the Project. The APs were advised that compensation would be paid at full replacement cost.

ix. On whether the proposed Project would bring in any potential benefits to the affected villages, a simple majority (54%) of the respondents did not think so. A smaller percentage (43%) were not sure of any potential benefits brought by the Project; while only a very small percentage (3%) believed the Project could bring some benefits.

x. There were not many respondents commenting on the proposed Project; only about 18% of the total respondent did so. The comments are highlighted as follows:

Fear about the health hazard due to the exposure to the electro-magnetic field from the overhead cables.

Damage of roads to their villages and Project proponent should make compensatory repairs.

Once the decision the implement the Project is finalised, the affected villages should be informed and there should be no delay in the completion of the Project.

The transmission line should be far away from the villages and their crops.

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C. Views from SALCRA which Manages the Oil Palm Plantations

111. Based on the alignment plan of the proposed transmission line (see map in Figure 2), the line will pass through the SALCRA plantation between Km 35 and Km 37 of the proposed line near Kampong Serikin stretching a distance of about 1.6 km in length. 112. The consultant team had interviewed one of the officials of SALCRA. According to the official interviewed, if SALCRA had a choice, they would prefer that the proposed Project would not pass through their plantation. However, they knew that this was a Government project and they had to accept the Project plan. Their main issue was the loss of plantation area because of the Right of Way (ROW) as mandated in the Electricity Ordinance. Compensation for loss of land and crop would normally be settled between the Land and Survey Department, SALCRA and the affected land owners. Compensation for crop loss would usually be paid to SALCRA and loss of land to the land owners concerned. 113. SESCO will prepare a project information leaflet which will then be distributed to the APs/DPs prior to consultation on resettlement entitlement. The basic information provided in the leaflet are: (i) brief sub project description; (ii) detailed project location; (iii) policy on land acquisition and resettlement; (iv) project resettlement entitlements; (v) compensation and income restoration; (vi) grievance redress; and, (vii) implementation schedule. Aside from the leaflet, the draft and final REMDP will be uploaded onto the ADB website.

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IX. Legal and Policy Framework

A. State Legislations 114. There are two sets of State legislations that are relevant to the proposed Project; one is related to the resumption of lands owned by the local people where they are affected transmission line and its physical supports; the other is concerned with the protection and maintenance of power line and its installations as well as public safety. 115. According to the alignment plan (see Figure 1) the establishment of the proposed transmission line will invariably pass through some Native Customary Rights (NCR) lands as well as the SALCRA plantation. The area that is to be used by the proposed transmission line and its installations will have to be acquired for the purpose of the proposed Project. Section 46 (c) of the Land Code 1958 (Chapter 81) which is cited below empowers the Government to make compulsory acquisition of the lands for the purpose of the proposed Project:

“Land May be resumed by the Government under the provisions of this Part whenever it is required for – (c) the provision or improvement and development of roads and means of communications and any public utility or public service, whether undertaken or managed , or to be undertaken or managed, by the Federal or State Government or by a public body or by private enterprise or otherwise howsoever;”

116. The process of compulsory land acquisition of land is also governed by three other sections of the Land Code, 1958 as detailed below:

(i) Section 47 is concerned with the power to enter and survey and to determine the compensation for the land to be acquired and damages due to the loss of the crops and other structures, as well as dealing with any dispute about the legitimate ownership of land and compensation;

(ii) Section 48 is concerned with declaration and procedure for declaration of the land required for public purpose; and

(iii) Section 49 is concerned with the plan of the said land to be made and serving of notices.

117. As the Land and Survey Department is the enforcer of the Land Code, they are mandated to handle to implementation of the sections of the Land Code as mentioned above. 118. On the legislation dealing with the protection and maintenance of power line and its installations and public safety, Electricity Ordinance (Chapter 50), (amended 2007) is relevant. Section 36 of the Ordinance provides the mandate for the State Cabinet Committee (Majlis Mesyurarat Kerajaan Negeri) to make rules cited as Electricity Rules, 1999. Installation of aerial line operating at high or extra high voltage is governed by Rule 43. In this rule there are 13 sub-rules ((a) to (m)) regulating the protection and maintenance of power line and its installations as well as public safety. 119. It should be noted that, among all these sub-rules, Sub-rule (j) related to maintaining Right of Way (ROW) has implication for the affected land owners to surrender the area of land concerned to the authority for the purpose of protection and maintenance of power line and its installations and public safety. Sub-rule (j) is cited as: “no person shall, without the lawful

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authority of the owner, management or licensee of the installation, as the case may be, undertake any work or engage in any activity within 4.57 meters of a conductor;” 120. However, for technical requirement, Syarikat SESCO Berhad has insisted that the ROW should be at least 20 meters on either side of the transmission line (i.e. at least 40 meters strip of land to be acquired), and this technical requirement overrides the 4.57 meters distance as stipulated in Sub-rule (j). 121. SEB through its subsidiary company, Syarikat SESCO Berhad is mandated to enforce the Electricity Ordinance and the Electricity Rules, 1999.

B. ADB Policies and Procedures of Guidelines 122. The new ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies: involuntary resettlement (IR), indigenous peoples (IP), and environment. The objectives of the IR policy are to (i) avoid involuntary resettlement, (ii) explore alternatives to avoid, (iii) restore livelihoods and (iv) improve living standards of poor and vulnerable households. The IR safeguard covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restriction on land use or on access to legally designated park and protected forest area. It covers them whether such losses and involuntary restriction are full or partial, permanent or temporary. 123. ADB’s Safeguard Policy Statement defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society”. "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. The IP policy objectives are to (i) design and implement projects that fosters full respect for IP's identity, dignity, human rights, livelihoods systems, and cultural uniqueness as defined by IP themselves and (ii) ensure that IPs receive culturally appropriate social and economic benefits, do not suffer adverse impacts as a result of projects, and can participate actively in projects that affect them.”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability.

124. ADB’s Policy on Gender and Development (1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. The new safeguard policy and requirements also reiterates the importance of including gender issues in the preparation of safeguards documents at all stages to ensure that gender concerns are incorporated, including gender-specific consultation and

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information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights and restoration/improvement of their living standards; and to ensure that women will receive project benefits. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005), and (ii) Accountability Mechanism (2003).

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X. Project Principles and Entitlements

A. Project Principles 125. The core principle of the Project Policy is anchored on the philosophy that development projects must serve the public good and that, in the design and implementation of such projects, all efforts will be exerted to help ensure that APs are not worse off. Moreover, the Project should provide an opportunity for the local population to derive benefits from it. Likewise, the Project should serve as an occasion for the local population to participate in its planning and implementation, thereby engendering a sense of ownership over the Project, subprojects and other components. Towards this end SESCO will carry out the Project based on the following principles: 126.. Principles adopted for this Project are the following below:

a. Involuntary resettlement and impacts on land, structures and other fixed assets

will be minimized where possible by exploring all alternative options. b. Affected people (APs) residing, working, doing business and cultivating land

within the required project area as of the completion date of the census and inventory of losses (based on preliminary design) but verified during detailed measurement survey (based on detailed design) will be entitled to compensation and rehabilitation assistance to assist them in improving, or at least maintaining their pre-project living standards and productive capacities. The Project will ensure that DPs are able to find alternative sites or income sources.

c. Lack of formal legal title or rights will not be a bar to eligibility for compensation and assistance under the Project. APs will not be displaced from affected land until the village allocates suitable alternative land or compensation is paid that is sufficient to purchase suitable land.

d. All compensation will be based on the principle of replacement cost at the time of compensation. For houses and other structures, this will involve the costs for materials and labor at the time of acquisition, with no deduction for depreciation or for salvageable materials. Compensation for land will be replacement land as a priority, or where this is not possible, in cash adequate to purchase land locally of equivalent size and quality, and where required to improve land to achieve suitable quality.

e. The process and timing of land and other asset acquisition will be determined in consultation with DPs to minimize disturbance.

f. Where houses and structures are partially affected to the degree that the remaining portion is not viable for its intended use, the Project will acquire the entire asset, and APs will be entitled to compensation at replacement cost for the entire asset.

g. APs will be systematically informed and consulted about the Project, the rights and options available to them and proposed mitigating measures. The comments and suggestions of APs and communities will be taken into account.

h. The key information in the REMDP such as measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to APs/DPs in an understandable format such as the distribution of public information booklets translated in local language or through community meetings prior to submission to ADB.

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i. No land acquisition or site clearing will be done for the transmission line right of way (TL/ROW) until and after the REMDP has been updated by SESCO and approved by ADB, and until and after all entitlements due to the DPs as provided for under the approved REMDP have been given.

j. Resettlement identification, planning and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights, and to ensure the restoration of their income and living standards.

k. Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved.

l. Where appropriate, special measures will be incorporated in the Resettlement & Ethnic Minority Development Plan to protect socially and economically vulnerable groups such as indigenous peoples, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with appropriate assistance to help them improve their standard of living through asset building strategies such as provision of land, replacement housing of minimum standards and increased security of tenure.

m. There will be effective mechanisms for hearing and resolving grievances during updating and implementation of the REMDP. If necessary, SESCO will ensure that separate consultation with representatives of APs especially women and vulnerable groups are undertaken.

n. Institutional arrangements will be in place to timely and effectively design, plan, consult and implement the land acquisition, compensation, resettlement, and rehabilitation programs.

o. Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period.

p. Culturally appropriate and gender sensitive, monitoring and evaluation will be carried out in various stages of the project and set in place as part of the resettlement management system.

q. Voluntary donation will not be applied for any land and non-land assets. r. SESCO will not issue notice to proceed for any civil works contract (or will not

allow any construction activities) until there is confirmation that (i) payment has been fully disbursed to DPs and rehabilitation measures are in place as per project entitlements in the agreed REMDP; (ii) already-compensated DPs have cleared the Corridor of impact (COI) in a timely manner; and (iii) that the specific section is free from any encumbrances

B. Project Entitlements, Assistance and Benefits

127. Eligibility. The cut-off-date of eligibility refers to the date prior to which the occupation or use of the project area (i.e., area within the COI) makes residents/users of the same eligible to be categorized as AP and be eligible, regardless of tenure status. In this Project, the cut-off date will be the final day of the verification census of APs. The date has to be disclosed to each affected village by the relevant authority and/or SESCO in close coordination with relevant local governments and the villages have to disclose it to the communities. The establishment of the eligibility cut-off date is intended to prevent the influx of ineligible non-residents who might take advantage of Project entitlements. All APs who are identified in the project-impacted areas on

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the cut-off date will be entitled to compensation for their affected assets, and rehabilitation measures.

128. Entitlements. Entitlement matrix outlined in the table below shows the type of losses, eligible persons, entitlements, and implementation issues. The resettlement entitlement will be updated, as necessary, based on final DMS result referring to the final detailed design and in close consultation with APs and other concerned stakeholders to ensure that losses are compensated and restored, if not improved. Any updating/enhancement on the entitlement matrix shall be reflected in the updated REMDP and submitted to ADB for review and approval. No construction is to be commenced prior to implementation of the ADB approved updated REMDP.

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Table 18: Resettlement Entitlement

Type of Losses

Eligible Persons

Entitlements

Implementation Issues

I. Permanent Acquisition of Land

A. Agricultural Land Legal owners or traditional/adat tittle holders.

For marginal loss of land, cash compensation at replacement cost based on current market value and without deduction for taxes and administrative cost. For a significant loss (more than 10% of the total productive land/assets owned), land replacement with at least similar attributes will be prioritized for the compensation. Technical and financial assistance will be provided for land ownership document updating for those whose a portion of land to be acquired by the project.

In case of land replacement compensation, the project will provide assistance to the AHs to purchase and register land For traditional title land /customary (NCR) land, APs will need to demonstrate a legal claim to the land in accordance with the Sarawak Land Code.

B. Permanent Acquisition of Residential Land for the T/L Towers

Legal owner or occupant identified during DMS.

Marginal loss of land will be provided in the form of Cash compensation at replacement cost which is equivalent to the current land market value with similar type and category, and free from administrative costs and deduction for taxes. For significant losses, APs will be prioritized to obtain compensation in the form of land replacement with similar attribute or even better. Technical and financial assistance will be provided for the land ownership document updating for those whose a portion of land to be acquired by the project.

No APs are expected to lose their residential land. However, if it is identified during the final DMS, compensation will be paid at replacement cost. For traditional title land /customary (NCR) land, APs will need to demonstrate a legal claim to the land in accordance with the Sarawak Land Code.

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II. Crops and Trees

Crops and trees Owners of Crops and Trees, regardless of tenure status, including sharecroppers/NCR land users .

Cash compensation at replacement cost which is equivalent to age, type, and productive value. Productive crops/trees will cover 1 year of production value. The APs will be provided opportunity to harvest prior to the construction commencement.

APs will retain possession of salvageable crops and trees Final inventory of crops/trees in the ROW will be conducted prior to cable stringing.

III. Public Facilities,

Community Facilities, Public infrastructures

Community, local government,, organizations

To be restored and relocated in a better condition than pre-project condition and culturally appropriate.

Restoration and relocation etc is to be confirmed by the Internal Monitoring reports.

IV. Temporary Loss of Land & Impacts on Non-Land Assets during Construction

Temporary loss of land

To be determined during final DMS and during construction.

APs whose land is taken temporarily due to civil work under the project will be compensated at replacement cost based on the losses including income losses from land and non-land assets. Restoration of land will be done immediately after use

APs will sign a temporary occupation contract specifying: (i) period of occupancy; (ii) formula for compensation calculation of the losses; (iii) compensation payment, and (iv) Land Protection and rehabilitation measures.

Impacts on Non- Land Assets (crops, trees, houses, structures)

Owner to be identified during construction regardless of tenure status, including sharecroppers / adat land users

Compensation at replacement cost based on the losses/damages.

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V. Special Attention to Severely Affected and Vulnerable Groups, including Women, IPs, and Poor People

Higher risk of hardship due to project impacts.

APs that lose more than 10% of their total productive land/assets. APs who are considered poor people. APs who are categorized vulnerable groups including elderly, IP, ethnic minority, women heading households but they are not considered poor and severely affected

Income restoration and rehabilitation program will be provided for severely AHs and poor AHs by the project in close consultation with APs. Special attention will be provided during consultations, compensation payment, etc.

The income restoration and rehabilitation will be prepared by SESCO upon completion of DMS and needs assessment.

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XI. Institutional Arrangements

129. There are 6 key institutions that will play the roles in the taking initiatives in addressing the social impacts of the proposed Project. They are the Land and Survey Department, Syarikat SESCO, District Office of Bau and Sub-district office of Siburan, NREB and Village Security and Development Committee (VSDC); each will play different roles in dealing with the social impacts during the implementation of the proposed Project. Their specific roles are described below.

A. Communication with the affected communities on the proposed Project (i) District and Sub-district Officers of Bau and Siburan

Providing the leadership in organising dialogue sessions between the affected communities, Village Security and Development Committee (VSDC), Syarikat SESCO, Land and Survey Department and NREB.

(ii) Syarikat SESCO, Land and Survey Department, and NREB

Conduct public consultation and public disclosure.

Participating in dialogue and providing information required by the affected communities.

B. Loss of assets and compensation (i) Land and Survey Department

Carrying out survey of the affected households to identify affected households, their loss of assets, and the rate of compensations.

Informing the affected households on the compensations.

Negotiation with aggrieved affected persons who are not satisfied with the compensation offered.

Dealing with aggrieved persons who have objection to ownership of land.

Administering compensation. (ii) Syarikat SESCO

Assisting Land and Survey Department in carrying out survey works by providing details of the alignment plan for the transmission lines and engineering details of installations.

Preparing budget for the compensation and survey works. (iii) District Offices of Bau and Siburan

Monitoring the works of Land and Survey Department and assist the agency in the event of dispute such as land dispute.

(iv) NREB

Monitoring all aspects of the implementation of the Project especially those related to environmental issues.

C. Establishment of Organisation and Management for Grievance Mechanism

Establish a Co-management unit consisting of representatives from District Offices, Syarikat SESCO, Land and Survey Department, NREB, local Temmongong (Paramount Chief of Bidayuh community appointed by government) or Pemaca (regional chief of Bidayuh community appointed by government) and VSDC’s. The lead agency for the unit will be the District Office will be established.

Co-management unit to receive and evaluate the grievances, and make decisions on the solutions and on which agencies are responsible for taking action.

All agencies concerned to take respective action assigned to them and report to the unit on actions they are supposed to take.

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XII. Estimated Budget for Land Acquisition and Compensation

A. Assumptions

(i) Assume the whole corridor for towers and ROW to be acquired. The standard rate for land acquisition for NCR land as well as state land is RM 1,875/ha or 1875÷ 3.00 = USD 625/ha.

(ii) Assume the whole corridor for towers and ROW to be acquired is under shifting cultivation of hill paddy. Current land use information map does not show any pepper; there may be some pepper gardens and total area is very small and widely scattered; area in terms of number of gardens and size of garden (average less than 0.2 ha). However, the total area of pepper is insignificant in the shifting cultivation area. Assuming average yield is 1 mt/ha of paddy or 600 kg/ha of rice; price of rice is RM3.00/kg or USD 1/kg

(iii) A small portion of the corridor to be acquired covers a small area of oil palm plantation under SALCRA–estimated area is 53.8 ha. Compensation will cover loss of land and oil palm crop. Replacement cost for oil palm covers establishment cost (estimated at RM12,000/ha or USD 4,000/ha); and loss of income is calculated on the basis of 3 years full production as the crop is expected to reach full production in 6 years and the present lost crop is fully mature. The production is assumed to be 25 mt. FFB or 5 mt of CPO (assuming 20% conversion). Operation or production cost is estimated to be RM 1,500/mt CPO or USD 500/mt.

(iv) Rubber: Compensate them on the basis that they need to re-establish a new rubber garden.

130. Establishment cost is RM 15,000 (USD 5,000) per ha. The rubber gardens lost consist of mature rubber. It takes 6 years to reach maturity. Yield per year is 2,000 kg per hectare (about 150 tapping days per year); at the price of RM6/kg (USD2/kg), the income is USD 4,000 per ha/year.

B. Budget estimates

Item Amount (USD) Basis of calculation

Land Acquisition

1. Land Acquisition for towers and ROW

96,500 40 m x 38.6 x1000 m = 1,544,400 m2

=154.4 ha. Compensation rate is USD 625 (1USD=MR3.00) = 96,500

Subtotal for Land Acquisition 96,500

Crop Compensation

2. Paddy crop (opportunity cost) 13,230 Assuming whole acquired area is under shifting cultivation with 7-year fallow period; potential yield is 1 m.t/ ha at USD 1.00/kg i.e. 1.00 x 600kg x 154.4 ha ÷ 7 yr =

3. Palm Oil crop (53.8 ha) 322,800 Establishment cost at USD 4,000/ha = 53.8 ha x 4,000 = 215,000 Loss of potential income (as crop is mature) for 3 years (full production), assuming 5 mt of cpo at USD 900/mt for 6 years, operational cost of USD500/mt; = (5 x 900 x 53.8) – (500 x 5 x 53.8) x 3

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= 107,600

4. Rubber 224,500 + 1,077,600 = 1,302,100

Establishment cost:44.9 ha x USD5,000 = USD 224,500; Loss of income for 6 full-production year: 44.9 ha x 2,000 kg x USD 2 x 6 = USD 1,077,600

Crop subtotal 1,638,130

TOTAL LAND AND CROP COMPENSATION

1,734,630

Implementation Cost (4%) 69,385

Contingency (15%) 270,602

GRAND TOTAL ESTIMATED COSTS

$2,074,617

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XIII. REMDP Updating 131. As the preparation of this REMDP is based on the conceptual design, there is a need to update the REMDP following the final detailed design and submit it to ADB for review and approval. The updated REMDP will cover identification and number of displaced Persons, inventory of losses, the extent of land to be acquired if applicable, resettlement budget, and the time table for implementing the REMDP. The entitlement matrix of the REMDP may be updated to reflect the relevant changes, yet the standards set in the updated REMDP cannot be lower than the one set in the draft REMDP. An important component of REMDP updating will be the identification of specific monitoring criteria which addresses the chapter XV of this REMDP. This criteria will be informed by issues and risks identified during detailed design which, if not properly monitored, could create unexpected safeguard impacts. 132. SESCO will facilitate the updating of the REMDP in association with the relevant authorities identified in this REMDP. 133. Special attention is to be paid to the Indigenous Peoples issues as outlined in ADB’s Safeguard Policy Statement. In this regard the matters detailed in Chapter 6 of this REMDP are to be fully integrated. Central to this will be the ongoing Meaningful Consultation to ensure that during the detailed design of phase of the project, consultation is continued so that affected people have an opportunity to influence the route alignment (and therefore likely impacts) associated with the transmission line. If any negative impacts are identified during this proces, the REMDP (after Meaninggul Consultation) will identify mitigative measures to avoid adverse impacts.

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XIV. Grievances Redress Mechanism. 134. It is envisaged that the Project will encounter be grievances. To address the above-mentioned issues, a ‘grievances’ mechanism will be established to take care of complaints from the affected households and communities. This mechanism will be in the form of a co-management unit to handle grievances, and it will comprise representatives from District Offices, Syarikat SESCO, Land and Survey Department, NREB, local Temmongong or Pemaca and VSDC’s. The lead agency for the unit will be the District Office. 135. The functions of this unit will be to receive and evaluate the grievances, and make decisions on the solutions and on which agencies are responsible for taking action. All agencies in the unit will have to be accountable to the unit on actions they are supposed to take. 136. Grievances may arise from the following stages of project development:

(a) Land acquisition - there might be objections by some affected persons on the area, number of plants and rate of compensation offered by the government, and also on the rightful ownership of the land in question. There are two possible approaches an aggrieved person could take.

137. It is noted that although a project specific grievance redress mechanism (GRM) will be developed including the co-management unit, nothing in the project GRM will impede access to legal remedy via the Malaysian and/or Sarawak legal system. 138. There are steps to be taken by an aggrieved person to get satisfaction in resolving the land compensation and claim issue concerned. They are as follows: Step 1: The first approach is to negotiate with the Department of Land and Survey Department by appearing personally or by agent before the Superintendent of Land and Survey of Kuching Division. Section 49 (2) of the Sarawak Land Code stipulates that the time of appearing before the Superintendent shall not be earlier than 21 days after the date of posting of the notice of government intension of taking possession of the land and the claims to compensation for all interests be made to the government. The aggrieved person shall state their objections to the notice (such as in measurements in the survey of the land, value of the land, counter claims and others) in writing and verbally during meeting with the Superintendent. 139. As stipulated in Section 51 (1) of the Sarawak land Code, the Superintendent shall proceed to inquire into the objections on the day so fixed or any other day. The award under Section 51 shall be filed in the office of the Superintendent and shall be final and conclusive evidence as between the Superintendent and the aggrieved person as stipulated in Section 52 (1). 140. Step 2: If step 1 fails, the next step is to go through court process. For this, there are provisions in Section 56, 57 and 59 and 212 of the Sarawak Land Code to govern the process and requirements.

(b) Construction stage; civil works – There may be grievances related to encroachment of their farm land by construction contractor, damage to existing access road and bridges to farms and village during the transportation of construction materials; and other damages. In this case, complaint can be referred to SESCO who is controlling the contractor.

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XV. Monitoring and Evaluation System 141. A monitoring and evaluation system will be established for the implementation of the initiatives to safeguard the interests of the affected households and communities. The monitoring and evaluation system will cover those initiatives for encouraging consultation and participation of the affected households and communities in addressing issues that affect their interests, communication of the affected households and communities on Project implementation, assessment of loss of assets and compensations for the loss, resolution of grievances from the affected households and communities, and other relevant initiatives. 142. Internal Monitoring and Evaluation will be undertaken by the SESCO project management team. The team will collect and collate information from affected communities and other implementing agencies (especially Land & Survey Department and Syarikat SESCO) on the progress of implementation of Resettlement & Ethnic Minority Development Plan (REMDP) covering the details as follows:

(i) Updating of REMDP is in accordance with the approved draft REMDP; (ii) Compensation and/or other entitlements are provided as per approved REMDP,

with no discrimination according to gender, vulnerability, or any other factor; (iii) Public information, public consultation and grievance redress procedures are

followed as described in the approved REMDP; (iv) Capacity of APs to restore/re-establish livelihoods and living standards. Special

attention will be given to severely affected and vulnerable households. Focus will also be given if the objective of improving socio-economic condition of vulnerable households is achieved.

(v) The transition between resettlement and commencement of civil works is smooth and that sites are not handed over for civil works until affected households have been satisfactorily compensated, and assisted

Specific, detailed monitoring criteria will be established during the REMDP updating to ensure issues identified during detailed design and REMDP updating are included in the monitoring process. See Chapter VIII of this REMDP. 143. Six monthly reports will be prepared starting from the commencement of REMDP preparation/updating, which coincides with the conduct of the detailed measurement survey and other REMDP activities. SESCO in turn will include updates on resettlement in its regular progress reports to ADB. Social monitoring reports will be made available to the AHs/DPs and will be submitted to ADB for web posting.

A. Implementation Schedule 144. Resettlement & Ethnic Minority Development Plan milestone is tentatively described in the table below.

Table 19: Resettlement & Ethnic Minority Development Plan Milestone

No Task Responsibility Timing

1 Loan Processing

a. Fact finding ADB October 2011

c. Loan Approval ADB December 2011

d. Loan effectiveness ADB/SESCO Feb 2012

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Preparation

3 Route and Design Finalization SESCO May 2012

4 Gathering DMS / New socio economic data SESCO May-June 2012

5 Preparation of project information booklet for each area

SESCO June 2012

6 Finalization of REMDP SESCO July 2012

7 ADB Approval and uploading to ADB website ADB August 2012

8 Resettlement disclosure in component area SESCO September 2012

REMDP Implementation

9 Compensation payment commencement SESCO September 2012

Monitoring

11 Internal Monitoring (6 monthly) SESCO Included in project progress reports