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Resettlement Plan Document Stage: Draft Project Number: 40919 November 2008 NEP: WEST SETI HYDROELECTRIC PROJECT Reservoir Area and Downstream Project Components Resettlement Planning Document Prepared by West Seti Hydro Limited for the Asian Development Bank (ADB). The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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  • Resettlement Plan Document Stage: Draft Project Number: 40919 November 2008

    NEP: WEST SETI HYDROELECTRIC PROJECT Reservoir Area and Downstream Project Components

    Resettlement Planning Document

    Prepared by West Seti Hydro Limited for the Asian Development Bank (ADB).

    The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADBs Board of Directors, Management, or staff, and may be preliminary in nature.

  • WEST SETI HYDROELECTRIC PROJECT

    ENVIRONMENTAL IMPACT ASSESSMENT

    Volume 3

    RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT

    COMPONENTS

    West Seti Hydro Limited 1611 Lamtangin Marg, Maharajgunj

    Kathmandu, Nepal

    October 2008 (Revision 4)

  • WEST SETI HYDROELECTRIC PROJECT RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT COMPONENTS (Rev-4)

    WEST SETI HYDRO LTD. OCTOBER 2008 I

    TABLE OF CONTENTS

    SUPPORTING DOCUMENTS ............................................................................................................................. V

    LIST OF TABLES ..................................................................................................................................................... V

    LIST OF FIGURES ................................................................................................................................................ VII

    LIST OF PHOTOS ................................................................................................................................................ VII

    ABBREVIATIONS ............................................................................................................................................. VIII

    GLOSSARY OF LOCAL TERMS ......................................................................................................................... IX

    LAND CONVERSIONS AND TERMINOLOGY .............................................................................................. X

    EXECUTIVE SUMMARY ...................................................................................................................................... XI

    1. INTRODUCTION ........................................................................................................................................ 1-1

    1.1 PROJECT BACKGROUND ........................................................................................................................... 1-1 1.2 PROJECT STUDIES ..................................................................................................................................... 1-2 1.3 PROJECT IMPACTS..................................................................................................................................... 1-2 1.4 AIMS OF THE RESETTLEMENT PLAN ........................................................................................................ 1-3 1.5 REPORT LAYOUT ...................................................................................................................................... 1-4

    2. METHODOLOGY ........................................................................................................................................ 2-1

    2.1 EIA RESEARCH AND DATA COLLECTION ............................................................................................... 2-1 2.2 FOLLOW-UP RESEARCH, DATA COLLECTION AND CONSULTATION ..................................................... 2-2 2.3 CONSTRAINTS AND LIMITATIONS ............................................................................................................ 2-4

    3. PROJECT DESCRIPTION .......................................................................................................................... 3-1

    3.1 PROJECT COMPONENTS............................................................................................................................ 3-1 3.2 CONSTRUCTION PROGRAMME ................................................................................................................. 3-5

    4. THE SOCIAL ENVIRONMENT ................................................................................................................ 4-1

    4.1 REGIONAL CONTEXT ................................................................................................................................ 4-1 4.1.1 Population and Demography ............................................................................................................ 4-1 4.1.2 Caste/Ethnicity ................................................................................................................................. 4-2 4.1.3 Development Context ....................................................................................................................... 4-3 4.1.4 Economic Activities and Livelihoods ................................................................................................ 4-3 4.1.5 Poverty .............................................................................................................................................. 4-5

    4.2 PROJECT AREA ......................................................................................................................................... 4-6 4.2.1 Settlement Patterns .......................................................................................................................... 4-6 4.2.2 Access and Movement Patterns ........................................................................................................ 4-8 4.2.3 Population and Demography ............................................................................................................ 4-9 4.2.4 Education ........................................................................................................................................ 4-12 4.2.5 Health and Sanitation ..................................................................................................................... 4-14 4.2.6 Land Tenure and Landholdings ...................................................................................................... 4-15 4.2.7 Use of Forest and Other Natural Resources ................................................................................... 4-17 4.2.8 Seti River Use ................................................................................................................................. 4-17 4.2.9 Occupational Patterns and Livelihoods .......................................................................................... 4-18 4.2.10 Income and Expenditure ................................................................................................................. 4-22 4.2.11 Poverty ............................................................................................................................................ 4-25

  • WEST SETI HYDROELECTRIC PROJECT RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT COMPONENTS (Rev-4)

    WEST SETI HYDRO LTD. OCTOBER 2008 II

    4.2.12 Vulnerable Groups/Social Categories ............................................................................................. 4-26

    5. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ............................................................... 5-1

    5.1 RATIONALE FOR LAND ACQUISITION ..................................................................................................... 5-1 5.1.1 Motivation for the Project................................................................................................................. 5-1 5.1.2 Project Type and Design Alternatives .............................................................................................. 5-1 5.1.3 Efforts to Minimise Land Acquisition and Resettlement ................................................................. 5-2

    5.2 PROJECT LAND REQUIREMENT ................................................................................................................ 5-2 5.3 KEY SOCIAL ISSUES AND IMPACTS ........................................................................................................... 5-3 5.4 HOUSEHOLDS AND POPULATION ............................................................................................................ 5-4 5.5 PRIVATE LAND ......................................................................................................................................... 5-8 5.6 POPULATION DISPLACEMENT AND RESETTLEMENT ............................................................................... 5-9 5.7 BUILDINGS/STRUCTURES .......................................................................................................................... 5-9

    5.7.1 Houses and Buildings ....................................................................................................................... 5-9 5.7.2 Schools ............................................................................................................................................ 5-11 5.7.3 Other Social Infrastructure ............................................................................................................ 5-12

    5.8 TREES ...................................................................................................................................................... 5-14 5.9 FOREST AND RIVER RESOURCES ............................................................................................................ 5-15 5.10 SOCIAL IMPACTS OF ALTERED RIVER FLOWS ........................................................................................ 5-15 5.11 ACCESS AND MOVEMENT ...................................................................................................................... 5-16

    6. LEGAL AND POLICY FRAMEWORK ..................................................................................................... 6-1

    6.1 NATIONAL CONTEXT ............................................................................................................................... 6-1 6.1.1 Constitutional Guarantees ............................................................................................................... 6-1 6.1.2 Land Acquisition Act, 2034 (1977) .................................................................................................. 6-1 6.1.3 Land Act, 1964 ................................................................................................................................. 6-2 6.1.4 Guthi Corporation Act, 1976 ............................................................................................................ 6-2 6.1.5 National Policy on Land Acquisition, Compensation and Resettlement, 2006 ................................ 6-4 6.1.6 Tenth Plan 2002-2007 ...................................................................................................................... 6-5 6.1.7 Hydropower Development Policy, 2001 ........................................................................................... 6-5 6.1.8 Local Self Governance Regulation, 2000 .......................................................................................... 6-5 6.1.9 Compensation and Resettlement Practices on Hydroelectric Projects in Nepal ............................... 6-5

    6.2 ADB POLICY GUIDELINES ....................................................................................................................... 6-8 6.3 WSHEP RESETTLEMENT POLICY ........................................................................................................... 6-10

    7. CONSULTATION AND PUBLIC DISCLOSURE .................................................................................. 7-1

    7.1 EIA CONSULTATION PROGRAMME (1997-1999) .................................................................................... 7-1 7.1.1 Community Meetings ....................................................................................................................... 7-1 7.1.2 Socio-Economic Survey .................................................................................................................... 7-3 7.1.3 Information Sheets ............................................................................................................................ 7-4 7.1.4 Consultations in Terai Resettlement Districts ................................................................................. 7-4 7.1.5 Consultative Committee ................................................................................................................... 7-4 7.1.6 Public Hearings ................................................................................................................................ 7-5

    7.2 CONSULTATION ACTIVITIES IN THE POST-EIA PERIOD (2006-2008) ..................................................... 7-5 7.2.1 Community Meetings ....................................................................................................................... 7-6 7.2.2 Socio-Economic Survey .................................................................................................................... 7-7 7.2.3 Information Sheets and Project Documents ..................................................................................... 7-9 7.2.4 Establishment of Community Consultation Structure ..................................................................... 7-9 7.2.5 Appointment of Consultation Staff ................................................................................................ 7-10 7.2.6 Establishment of Information Centres ............................................................................................ 7-11 7.2.7 Consultations in Terai Resettlement Districts ............................................................................... 7-12

    7.3 SUMMARY OF CONSULTATIONS ............................................................................................................. 7-12 7.4 FURTHER CONSULTATION AND DISCLOSURE ....................................................................................... 7-14

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    WEST SETI HYDRO LTD. OCTOBER 2008 III

    8. RESETTLEMENT FRAMEWORK ............................................................................................................. 8-1

    8.1 CONSIDERATIONS ..................................................................................................................................... 8-1 8.1.1 Magnitude of Displacement.............................................................................................................. 8-1 8.1.2 Land-Based Resettlement .................................................................................................................. 8-1 8.1.3 Relocation to the Terai ...................................................................................................................... 8-1 8.1.4 Dispersed Resettlement Pattern ....................................................................................................... 8-2

    8.2 RELOCATION OPTIONS AND ELIGIBILITY ................................................................................................ 8-2 8.3 RELOCATION TO THE TERAI ..................................................................................................................... 8-4

    8.3.1 Socio-Economic Conditions in Terai Resettlement Districts ............................................................ 8-4 8.3.2 Land Requirement and Availability ................................................................................................. 8-6 8.3.3 Constraints ....................................................................................................................................... 8-8 8.3.4 Site Planning .................................................................................................................................... 8-9 8.3.5 Terai Subsistence Level Landholding ............................................................................................... 8-9 8.3.6 Services and Facilities ..................................................................................................................... 8-10 8.3.7 Consultation Programme ............................................................................................................... 8-10 8.3.8 Programme for Land Purchase and Development .......................................................................... 8-11

    8.4 LOCAL RELOCATION .............................................................................................................................. 8-15 8.5 SELF-RELOCATION ................................................................................................................................. 8-16

    9. COMPENSATION AND LIVELIHOOD RESTORATION .................................................................. 9-1

    9.1 AFFECTED PERSONS AND CATEGORIES OF LOSS ..................................................................................... 9-1 9.2 ASSET VERIFICATION AND COMPENSATION DETERMINATION AND PAYMENT .................................... 9-2 9.3 ENTITLEMENTS ......................................................................................................................................... 9-3

    9.3.1 Houses and Other Structures ........................................................................................................... 9-3 9.3.2 Businesses ......................................................................................................................................... 9-4 9.3.3 Land and Other Natural Resources .................................................................................................. 9-4 9.3.4 Compensation for Temporary Land Occupation .............................................................................. 9-8 9.3.5 Trees and Crops ................................................................................................................................ 9-8 9.3.6 Community Facilities and Services .................................................................................................. 9-9 9.3.7 Loss of Communal Resources ........................................................................................................... 9-9 9.3.8 Tenants and Landless Households .................................................................................................... 9-9

    9.4 REHABILITATION ALLOWANCES ........................................................................................................... 9-10 9.5 LIVELIHOOD RESTORATION INITIATIVES ............................................................................................... 9-11

    9.5.1 Minimum Subsistence Landholding ............................................................................................... 9-11 9.5.2 Terai Orientation Programmes ....................................................................................................... 9-11 9.5.3 Terai Agricultural Support Programme ......................................................................................... 9-11 9.5.4 Construction Skills Training .......................................................................................................... 9-12 9.5.5 Preferential Employment Strategy ................................................................................................. 9-12 9.5.6 Water and Sanitation Programme in the Downstream Riparian Area .......................................... 9-13 9.5.7 Agricultural Programme in the Seti Valley .................................................................................... 9-14 9.5.8 Community Forestry ...................................................................................................................... 9-14 9.5.9 Mitigation Projects for Fish/Fishing .............................................................................................. 9-15 9.5.10 School Assistance Programme ........................................................................................................ 9-15 9.5.11 Health Service Improvement .......................................................................................................... 9-16 9.5.12 Shareholding ................................................................................................................................... 9-16

    9.6 PROJECT USE OF LOCAL CONSTRUCTION MATERIALS ......................................................................... 9-16 9.7 TEACHERS AND OTHER GOVERNMENT OFFICIALS ............................................................................... 9-16 9.8 LAND ACQUISITION AND TRANSFER ..................................................................................................... 9-16

    10. INSTITUTIONAL AND ORGANISATIONAL ARRANGEMENTS ........................................... 10-1

    10.1 WSH RESETTLEMENT AND DEVELOPMENT DIVISION .......................................................................... 10-2 10.1.1 Technical and Field Support Branch .............................................................................................. 10-3

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    WEST SETI HYDRO LTD. OCTOBER 2008 IV

    10.1.2 Resettlement Field Operations Branch ........................................................................................... 10-6 10.1.3 Resettlement Housing and Special Projects ................................................................................... 10-7

    10.2 RESETTLEMENT STEERING COMMITTEE AND DISTRICT COORDINATING COMMITTEES ...................... 10-9 10.3 COMMUNITY PARTICIPATION PROGRAMME ........................................................................................10-10

    10.3.1 Community Consultation and Participation Structure ................................................................10-10 10.3.2 Community Liaison Assistants .....................................................................................................10-12 10.3.3 Information Centres .......................................................................................................................10-13

    10.4 COORDINATION WITH OTHER AGENCIES ............................................................................................10-14 10.5 GRIEVANCE AND DISPUTE RESOLUTION ..............................................................................................10-14

    11. MONITORING AND EVALUATION ............................................................................................... 11-1

    11.1 MONITORING FRAMEWORK ................................................................................................................... 11-1 11.2 PERFORMANCE MONITORING................................................................................................................ 11-2 11.3 IMPACT MONITORING ............................................................................................................................ 11-3

    11.3.1 Standardised (Quantitative) Monitoring ....................................................................................... 11-3 11.3.2 Participatory (Qualitative) Monitoring ......................................................................................... 11-3

    11.4 EVALUATION PANEL .............................................................................................................................. 11-4 11.5 COMPLETION AUDIT .............................................................................................................................. 11-5 11.6 REPORTING ............................................................................................................................................. 11-5

    12. IMPLEMENTATION PROGRAMME ................................................................................................ 12-1

    12.1 CONSTRUCTION SCHEDULE ................................................................................................................... 12-1 12.2 RESETTLEMENT STAGES ......................................................................................................................... 12-1

    12.2.1 Stage 1 Resettlement: Advanced Infrastructure and Construction Areas...................................... 12-4 12.2.2 Stage 2 Resettlement: Partial Inundation (EL 1,130 m) ................................................................ 12-4 12.2.3 Stage 3 Resettlement: Partial Inundation (EL 1,188 m) ................................................................ 12-4 12.2.4 Stage 4 Resettlement: Partial Inundation (EL 1,188 m + 96 m) .................................................... 12-5 12.2.5 Stage 5: Post Inundation ................................................................................................................ 12-5

    12.3 RESETTLEMENT SCHEDULE .................................................................................................................... 12-5 12.4 EQUITABLE TREATMENT OF HOUSEHOLDS ........................................................................................... 12-6 12.5 UNCERTAINTIES AND RISKS ................................................................................................................... 12-7

    13. RESETTLEMENT BUDGET ................................................................................................................. 13-1

    13.1 COMPENSATION FOR BUILDINGS AND STRUCTURES ............................................................................. 13-1 13.2 LAND ACQUISITION AND REPLACEMENT ............................................................................................. 13-1 13.3 LEASING OF TEMPORARILY ACQUIRED LAND....................................................................................... 13-1 13.4 COMPENSATION FOR TREE LOSSES ........................................................................................................ 13-1 13.5 COMMUNITY FACILITIES AND SITE DEVELOPMENT .............................................................................. 13-2 13.6 ALLOWANCES ........................................................................................................................................ 13-2 13.7 EMPLOYMENT AND LOCAL DEVELOPMENT .......................................................................................... 13-2 13.8 MANAGEMENT AND ADMINISTRATION ................................................................................................ 13-2 13.9 CONTINGENCIES ..................................................................................................................................... 13-2

    14. REFERENCES .......................................................................................................................................... 14-1

    15. APPENDIX 1: ENTITLEMENT MATRIX........................................................................................... 15-1

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    WEST SETI HYDRO LTD. OCTOBER 2008 V

    S UP P OR T ING DOC UME NT S

    The following supporting documents are provided in a separate volume: 1 List of households interviewed for the EIA. 2 Frequency tables from the 1997/98 and 2006 household surveys. 3 Riparian villages between the dam wall and the re-regulation weir. 4 List of nominated community representatives on the LCFs during the EIA study. 5 Information sheets. 6 Buildings recorded in the reservoir area (1997/98). 7 Schools recorded in the reservoir area and periphery (1997/98). 8 Land exchange ratios. 9 Monitoring indicators. 10 Construction workforce. 11 Selected socio-economic indicators for the Terai resettlement districts. 12 List of community committee members (2007-present). 13 Compensation and resettlement resolutions of participating community committees (31 July 2008).

    L IS T OF T AB L E S

    Table 1-1: Primary Social Issues and Impacts .................................................................................................... 1-2Table 1-2: Households Affected by Reservoir and Downstream Project Components ................................ 1-3Table 3-1: Proposed Access Roads ....................................................................................................................... 3-4Table 3-2: Estimated Construction Workforce ................................................................................................... 3-6Table 4-1: Population Figures and Densities in the Far Western Development Region .............................. 4-2Table 4-2: Caste/Ethnic Composition of the FWDR Population (2001) .......................................................... 4-3Table 4-3: Development Status of Districts in the FWDR (2004) ..................................................................... 4-3Table 4-4: Occupational Status of the Economically Active Population in the FWDR (2001) ..................... 4-4Table 4-5: Household and Per Capita Income in the FWDR (2004) ................................................................ 4-5Table 4-6: Incidence of Poverty by Region ......................................................................................................... 4-5Table 4-7: Villages in the Reservoir Area and Periphery .................................................................................. 4-7Table 4-8: Villages in the Downstream Riparian Area ..................................................................................... 4-8Table 4-9: Households and Population in the Project Area VDCs (1991 and 2001) .................................... 4-10Table 4-10: Age, Gender and Residential Status of the Surveyed Population (1997/98 and 2006) .................. 4-11Table 4-11: Caste/Ethnic Groups in the Reservoir Area (1997/98 and 2006) ................................................ 4-11Table 4-12: Involvement of Women in Decision-Making ............................................................................... 4-12Table 4-13: Literacy/Educational Levels, Population 6 Years and Older (1997/98 and 2006) .................... 4-13Table 4-14: Sources of Water for all Purposes (2006) ...................................................................................... 4-14Table 4-15: Reported Landholding Sizes in the Reservoir Area (1997/98 and 2006) .................................. 4-16Table 4-16: Reported Landholding Sizes in the Reservoir Area (1997/98) ................................................... 4-16Table 4-17: Seti River Use in Riparian Villages (1998) .................................................................................... 4-18Table 4-18: Occupational Status of the Surveyed Population 15 Years and Older (2006) .......................... 4-19Table 4-19: Skills Reported in the Reservoir Area, Population 15 Years and Older (2006) ....................... 4-19Table 4-20: Division of Labour by Sex in the Reservoir Area (2006) ............................................................. 4-20Table 4-21: Selected Agricultural Statistics from the Sample Survey (2006) ................................................ 4-20Table 4-22: Food Sufficiency Status of Surveyed Households (2006) ........................................................... 4-21Table 4-23: Livestock Ownership in the Reservoir Area (1997/98) ............................................................... 4-21Table 4-24: Off-Farm Income Sources in the Reservoir Area (2006) ............................................................. 4-22Table 4-25: Average Annual Household Income (2006) ................................................................................. 4-23Table 4-26: Classification of Households by Income Range (2006) ............................................................... 4-24

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    WEST SETI HYDRO LTD. OCTOBER 2008 VI

    Table 4-27: Average Annual Expenditure Pattern of Surveyed Households (2006) .................................. 4-24Table 4-28: Distribution of Absolute Poor Households by VDC (2006) ....................................................... 4-25Table 4-29: Absolute Poor Households by Caste and Ethnicity .................................................................... 4-25Table 5-1: Project Land Requirement .................................................................................................................. 5-3Table 5-2: Permanently Required Land by Land Use Type ............................................................................. 5-3Table 5-3: Estimate of Affected Households ...................................................................................................... 5-4Table 5-4: Households in the Reservoir Area (1998 and 2006) ........................................................................ 5-5Table 5-5: Households and Population in the Reservoir Area (2006) ............................................................. 5-6Table 5-6: Households Affected by Other Project Components ...................................................................... 5-7Table 5-7: Cultivation Land in the Reservoir Area and No Habitation Zone ................................................ 5-8Table 5-8: Affected Households by Resettlement Category ............................................................................ 5-9Table 5-9: Buildings in the Reservoir Area (1998) ........................................................................................... 5-10Table 5-10: Schools to be Relocated from the Reservoir Area ........................................................................ 5-11Table 5-11 Temples/Shrines to be Relocated from the Reservoir Area ......................................................... 5-13Table 6-1: Resettlement Principles for the WSHEP ......................................................................................... 6-10Table 7-1: Composition of the Four Consultative Forums in the Project Area (1997/98) ............................. 7-2Table 7-2: Respondents Attitude Towards the Project (1997/98) .................................................................... 7-3Table 7-3: Respondents Attitude Towards the Project (2006) ......................................................................... 7-7Table 7-4: Response to Key Project Issues (2006) ............................................................................................... 7-8Table 7-5: Compensation Preferences (1997/98 and 2006) ................................................................................ 7-8Table 7-6: Resettlement Preference of Surveyed Households (2006) .............................................................. 7-9Table 7-7: Summary of Consultations and Information Dissemination 1(997-2008) .................................. 7-12Table 8-1: Affected Households by Resettlement Category ............................................................................ 8-4Table 8-2: Resettlement Preference of Surveyed Households ......................................................................... 8-4Table 8-3: Selected Socio-Economic Indicators of the Terai Resettlement Districts ...................................... 8-5Table 8-4: Replacement Land Requirement in the Terai .................................................................................. 8-6Table 8-5: Private Land Available for Purchase in Kailali, Kanchanpur and Bardiya Districts .................. 8-7Table 8-6: Additional Private Land Potentially Available for Purchase ........................................................ 8-8Table 8-7: Minimum Subsistence Land Requirements in Far-Western Terai .............................................. 8-10Table 8-8: Preliminary Programme - Land Identification, Assessment and Purchase ............................... 8-12Table 8-9: Preliminary Programme - Farm Planning ...................................................................................... 8-13Table 8-10: Preliminary Programme - House Design ..................................................................................... 8-14Table 8-11: Preliminary Programme - Farm Development and House Construction ................................ 8-15Table 9-1: Land Exchange Ratios (Seti Valley Terai) ...................................................................................... 9-5Table 11-1: Monitoring Framework ................................................................................................................... 11-2Table 12-1: Key Project Construction Milestones ............................................................................................ 12-1Table 12-2: Affected Households by Resettlement Stage ............................................................................... 12-2Table 12-3: Villages by Resettlement Stage ...................................................................................................... 12-3Table 13-1: Resettlement Budget ........................................................................................................................ 13-3Table 13-2: Resettlement Staff ............................................................................................................................ 13-4

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    WEST SETI HYDRO LTD. OCTOBER 2008 VII

    L IS T OF F IG UR E S

    Figure 1-1: General Location of the West Seti Hydroelectric Project .............................................................. 1-1Figure 2-1: Example of 1st Page of the Main Household Database ................................................................. 2-3Figure 3-1: General Map of the Project Area ...................................................................................................... 3-1Figure 3-2: General View of the Project Area ..................................................................................................... 3-2Figure 3-3: Power Station Site .............................................................................................................................. 3-3Figure 3-4: Proposed Route of the Transmission Line ...................................................................................... 3-5Figure 4-1: Villages in the Reservoir Area and Periphery ................................................................................ 4-7Figure 5-1: Schematic Layout of Access Road to Toe of Dam Wall ................................................................ 5-7Figure 5-2: Schools in the Reservoir Area and Periphery ............................................................................... 5-12Figure 5-3: Temples in the Reservoir Area and Periphery ............................................................................. 5-13Figure 5-4: Existing and Proposed Footbridges in the Reservoir Area ........................................................ 5-14Figure 6-1: Flowchart of the Land Acquisition Process .................................................................................... 6-3Figure 8-1: Resettlement Districts in the Terai ................................................................................................... 8-5Figure 9-1: Entitlements for Landed Household Relocating to the Terai ...................................................... 9-6Figure 9-2: Entitlements for Landless Household Relocating to the Terai .................................................... 9-7Figure 9-3: Household Communal Resource Entitlement Calculation .......................................................... 9-7Figure 10-1: Overall Social and Environmental Management Structure ..................................................... 10-1Figure 10-2: WSH Resettlement and Development Division ......................................................................... 10-2Figure 10-3: RDD Organisational Setup ........................................................................................................... 10-8Figure 10-4: Community Participation Structure ...........................................................................................10-11Figure 10-5: Grievance Redress Procedure ......................................................................................................10-15Figure 12-1: Implementation Schedule (1) ........................................................................................................ 12-9Figure 12-2: Implementation Schedule (2) .......................................................................................................12-10Figure 12-3: Implementation Schedule (3) .......................................................................................................12-11

    L IS T OF P HOT OS

    Photo 4-1: A Section of Talara Village ................................................................................................................. 4-6Photo 4-2: Dhungad-Talara Suspension Bridge ................................................................................................ 4-8Photo 4-3: Crossing the Seti River by Rope ........................................................................................................ 4-9Photo 4-4: Ganesh Secondary School, Mohoribagar ....................................................................................... 4-13Photo 4-5: Cultivation Land in the Reservoir Area ......................................................................................... 4-15Photo 5-1: Houses in Dhungad .......................................................................................................................... 5-10Photo 5-2: Deura Market Area ........................................................................................................................... 5-11Photo 7-1: Community Meetings in Deura and Gopghat, 2007 ...................................................................... 7-6Photo 7-2: Dhungad Information Centre .......................................................................................................... 7-11Photo 7-3: Meeting with Downstream Committee at Gopghat Information Centre .................................. 7-11Photo 10-1: Meeting with the West Seti Power Station Concern Committee .............................................10-12Photo 10-2: Moribagar Information Centre, Reservoir Area .........................................................................10-13

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    WEST SETI HYDRO LTD. OCTOBER 2008 VIII

    AB B R E V IAT IONS

    ACRP Acquisition, Compensation and Rehabilitation Plan ADB Asian Development Bank ARMS Acquisition and Resettlement Management System BNI Basic Needs Income BOOT Build Own Operate Transfer CBS Central Bureau of Statistics CDC Compensation Determination Committee CDO Chief District Officer CPI Consumer Price Index DCC District Coordinating Committee DDC District Development Committee EDC Electricity Development Centre EIA Environmental Impact Assessment EL Elevation EMP Environmental Management Plan FGD Focus Group Discussion FSL Full Supply Level FWDR Far-Western Development Region GIS Geographic Information System GoN Government of Nepal GWh Gigawatt hour ha Hectare HDI Human Development Index INGO International Non-Governmental Organisation ISA Initial Social Assessment km Kilometre km2 Square kilometre kV Kilovolt LAA Land Acquisition Act LCF Local Consultative Forum m Metre M&E Monitoring and Evaluation MoEST Ministry of Environment, Science and Technology MOL Minimum Operating Level MoPE Ministry of Population and Environment MoWR Ministry of Water Resources MT Metric Tonne MW Megawatt NEFIN Nepal Federation of Indigenous Nationalities NGO Non-Governmental Organisation NLSS Nepal Living Standards Survey NPC National Planning Commission NRs Nepal Rupee PAF Project Affected Family PDBC Plant Design and Build Contractor PME Participatory Monitoring and Evaluation PPA Power Purchase Agreement

  • WEST SETI HYDROELECTRIC PROJECT RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT COMPONENTS (Rev-4)

    WEST SETI HYDRO LTD. OCTOBER 2008 IX

    PPP Purchasing Power Parity RAP Resettlement Action Plan RDD Resettlement and Development Division RoW Right of Way RP Resettlement Plan RSC Resettlement Steering Committee SCI Shah Consult International (P) Ltd SLC School Leaving Certificate SMEC Snowy Mountain Engineering Corporation SPAF Severely Project Affected Family STD Sexually Transmitted Disease UNDP United Nations Development Programme US$ United States Dollar VCDP Vulnerable Community Development Plan VDC Village Development Committee WB World Bank WSH West Seti Hydro Ltd WSHEP West Seti Hydroelectric Project

    G L OS S AR Y OF L OC AL T E R MS

    Bari Land used for rainfed crop production Bigha Unit of land measurement; 1 bigha equals 0.6773 ha Doka Basket usually made from bamboo Ghat Cremation site Kharbari Grassland used for harvesting of grasses for thatching, etc Khet Irrigated land (or land that can be easily irrigated), generally situated in valleys Kitta Land plot/parcel number Lal purja Certificate of land ownership Rittha Soap made from the fruit of the rittha tree Ropani Unit of land measurement; 1 ropani equals 0.05087 ha

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    WEST SETI HYDRO LTD. OCTOBER 2008 X

    L AND C ONV E R S IONS AND T E R MINOL OG Y

    Conversions Land in the project area is measured in ropani and smaller units such as ana, paisa and dam, while land in Kailali District (a potential resettlement area in the Terai) is usually measured in bigha and kattha. The various conversion rates used in this document are given below: 1 Ropani = 16 ana = 64 paisa

    = 0.05087 ha 1 Bigha = 13.3126 ropani = 20 kattha

    = 0.6773 ha 1 Hectare = 19.655 ropani = 1.47645 bigha Terminology Agricultural land in the project area is grouped into different types and classes. These, in turn, form the basis for the calculation of land taxes, with individual landholdings (area and class of land) recorded at District Land Revenue Offices. The main land types are khet, bari and kharbari. Khet is irrigated land (or land that can be easily irrigated), generally situated in valleys and mainly used for paddy rice and wheat production. Since it is mostly situated on hill slopes, Bari is not irrigated and mainly used for rainfed crop production. Kharbari is grassland used for harvesting of grasses for thatching, etc. Another category of rainfed land is Phako. Bari is generally classified as the land close to the house (residential food garden), while Phako is further away from the house. Both khet and bari/phako are subdivided into the following land classes: Addam - class 1 land Doyam - class 2 land Sim - class 3 land Chahar - class 4 land

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    E XE C UT IV E S UMMAR Y

    Introduction

    The West Seti Hydroelectric Project (WSHEP) is a 750 MW storage scheme proposed on the Seti River in the Far Western Development Region (FWDR) of Nepal by West Seti Hydro Limited (WSH), the project proponent. The dam site is located 67 km upstream of the confluence of the Seti River with the Karnali River. The WSHEP will generate electrical energy (through an underground power station some 19 km downstream of the dam) throughout the year, storing excess wet season river flows in a reservoir and using this water to generate energy during daily peak electricity demand periods. The electricity will be exported to India under a Power Purchase Agreement (PPA), initialled in 2003 with Power Trade Corporation India Ltd (now called PTC India Ltd), and earn considerable export revenue for the project owner and the Government of Nepal (GoN). Power evacuation from the West Seti switchyard will occur via a 400 kV double circuit transmission line to the Atamanda substation in Uttar Pradesh (India), owned and operated by Power Grid Corporation India Ltd, with an estimated 3,636 GWh exported annually. Other project components include a headrace and tailrace tunnel; a re-regulation weir 6 km downstream of the tailrace outlet to regulate river flows and reduce rapid rises/falls in river levels created by power station releases; just over 20 km of permanent access roads; and temporary and permanent construction and operation facilities. Project construction will occur over a period of 5.5 years (66 months), commencing with the construction of access roads to the work sites. Construction will commence after the tender documentation has been approved, the construction contract has been executed, finance is secured and all permits and approvals have been obtained.

    Socio-Economic Impacts An Environmental Impact Assessment (EIA) of the project was initiated in 1997 and the EIA report was approved in 2000 by the Government of Nepals then Ministry of Population and Environment. This included an Environmental Management Plan (EMP) and a Resettlement Action Plan (RAP). Project activities have recently resumed, following a period of limited in-field project work. A number of additional studies were commissioned by WSH, including: (a) an EIA and Resettlement Plan (RP) for the proposed transmission line, prepared in August 2007; and (b) various studies to update the reservoir area EIA and RAP of 2000. The EIA update studies included a survey of a sample of 230 households in the reservoir area and fieldwork to prepare a Vulnerable Community Development Plan (VCDP) for the project. It also included a revision of the RAP prepared in 2000 to incorporate the results of the update studies, and to reorganise the RAP in line with the requirements and guidelines of the Asian Development Bank (ADB). The primary social issues associated with the WSHEP are land and asset acquisition, population displacement, changes to socio-economic conditions and practices and potential social impacts occurring during the construction phase. Current estimates show that 2,421 households (18,269 persons) will be directly affected by the project as a whole, which includes 296 households that will be affected by construction of the transmission line. The reservoir and downstream developments will affect 2,125 households. Of these, 1,680 will be affected by the reservoir and an estimated 445 by downstream project sites. An estimated 1,393 households will have to be resettled from the reservoir area and downstream project sites.

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    A further estimated 11,160 people in the downstream riparian zone between the dam site and the re-regulation weir site, although not directly affected through asset losses, may be affected to varying degrees by a permanent reduction in the flow of the Seti River (between the dam wall and the tailrace outlet) as well as by increases and decreases in the flow of the river flow due to discharges from the power station (between the tailrace outlet and the re-regulation weir). Potential impacts caused by reduced water flows between the dam wall and the tailrace outlet include reduced water quality and impacts on villages relying wholly or partly on the Seti River as a source of domestic/household water. The likely social impacts of altered river flows below the tailrace outlet are largely related to safety. The safety of river users is likely to be affected by the variation in river flows below the outlet. This will be particularly prevalent in the morning during the dry season when the powerhouse commences operation, and large volumes of water begin flowing in the river. At these times, the river will rise and widen over a relatively short time in the 6 km river stretch between the tailrace outlet and the re-regulation weir.

    Overview of the Project Area Population The FWDR, which occupies the area of land to the west of the Karnali River, remained relatively isolated from the rest of the country until the opening of the Mahendra (East-West) Highway and the construction of the bridge across the Karnali River. This history of relative isolation has partly contributed to the generally underdeveloped nature of the Region. The FWDR consists of nine districts, located in three ecological zones. The main project activities will occur in the four hill/mountain districts of Doti, Dadeldhura, Baitadi and Bajhang. The districts are further divided into VDCs which together with municipalities form the lowest political-administrative unit of governance. The WSHEP is located in parts of 20 VDCs: four in Baitadi District, five in Bajhang District: one in Dadeldhura District and 10 in Doti District. Fourteen of the VDCs are affected by the dam and reservoir, five by downstream project activities and one by both upstream and downstream activities. The re-regulation weir is also located in a portion of the Dipayal-Silgadhi Municipality area. Settlement Patterns Population concentrations in the reservoir area occur in the main Seti River valley at the settlements of Dhungad and Talara, further upstream at settlements such as Lekham, Deura and Chaudam, and along some of the tributaries (e.g. the settlements of Chamagaun and Nawaghari). Deura and Bagthala (the latter situated above the headwaters of the reservoir on the Kalanga Gad), and to a lesser extent Dhungad, are important market areas. There are numerous other scattered settlements or household clusters in the reservoir area, ranging in size from as small as two houses to more than 30 houses. These settlement arrangements are also evident in the project areas downstream of the dam wall. However, the downstream valley is much more accessible as a result of the Seti Rajmarg which connects Dipayal-Silgadhi (headquarters of Doti District) with Attariya and Dhangadhi in the Terai via the Mahakali Rajmarg. Population The 15 VDCs where the reservoir is located had 10,476 households and a combined population of 55,639 in 2001. Of these, approximately 1,680 households will be directly affected through the acquisition of land and assets. The downstream VDCs and Dipayal-Silgadhi Municipality had an estimated population of 41,395 (7,762 households) in 2001. Dipayal-Silgadhi Municipality accounted for 53.3% of the downstream population. Of the population in the downstream area, an estimated 11,600 people may be affected to varying degrees by changes in the flow of the Seti River. In 1997/98, the project area comprised predominantly Hindu caste groups (high caste Brahmin, Thakuri and Chhetri, the middle caste group and Dalit groups such as the Kami, Damai and Sarki). The same

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    caste and religious patterns were evident during the 2006 sample survey. Among the surveyed households, Chhetri (including Thakuri) and occupational castes (Kami, Damai and Sarki) were the dominant groups, constituting approximately 66.9% and 16.9% of the surveyed households respectively. In 1997/98, 40.9% of the population surveyed in the reservoir area for the EIA study were younger than 15 years, 53.5% were in the economically active age group (15 59 years) and 5.7% were in the 60 years and older age group. The 2006 sample survey recorded a slightly different age distribution: 33.6% of the sampled population were younger than 15 years, 59% were in the economically active age cohort and 7.4% in the 60 years and older age group. Livelihoods Subsistence agriculture plays a dominant role in local economic activities and livelihoods. Households also use a wide range of forest resources to meet/supplement their subsistence requirements, including fodder, fuel wood, timber, wild fruit/vegetables and medicinal plants. Most households grow vegetables and herbs in kitchen gardens for household consumption. Fruit is also grown in small household orchards. Land is registered in terms of the Land Act 2021 (and amendments). Owners are issued land certificates (lal purja) and details are retained at district Land Revenue and Survey Offices, along with cadastral maps. The land allocated to the original landowner is mostly inherited and subdivided within the family, although land transactions between non-related persons also occur. District records do not always reflect these changes in ownership. The 1997/98 household survey recorded an average landholding size of 1.37 ha amongst households in the reservoir area, and the 2006 sample survey an average of 1.27 ha, of which approximately 50% was lowland (khet), 31% upland (bari) and 18% grassland (kharbari). The Seti River is used by local communities for a range of purposes. Hinduism requires quite significant reliance on water for religious festivals. In addition, the river is used for a number of "life cycle/rites of passage" ceremonies. Catch fishing occurs throughout the year, particularly during the winter months when flow rates are comparatively low and fish stocks high. While the Seti River provides fish for household consumption, some households in the downstream area rely on fishing for household income generation. Most communities use natural springs or side streams for drinking water, and there is consequently a low reliance on the river as the sole drinking water source. Many persons, though (particularly in the downstream areas), use the river as a secondary source of water during the dry season (March - June). The River is also used for personal and clothes washing. Irrigation water is almost exclusively obtained from the tributaries of the Seti River. The River is used extensively for stock watering. Most households in the reservoir area are engaged in subsistence agriculture/animal husbandry, with a relatively small percentage involved in off-farm activities such as service work, business and wage labour (in Nepal and outside the country). The sample survey undertaken in 2006 shows agriculture as the prime occupation of people 15 years and older (68.1%), followed by service work such as teachers, health workers and other government officials (10.4%), and wage labour (4.9%). Less than 1% was recorded as engaged in business/industry. Many (10.7%) persons in this age category are students. The computed average annual household income of the households surveyed in 2006 was NRs 112,821. Agriculture contributed 46.2% to the average annual household income, livestock farming 13.6% and off-farm income sources 40.2%. The per capita income of the surveyed households (NRs 7,356 or US$ 105) was substantially less than the national average of US$ 290.

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    The Vulnerable Community Development Plan (VCDP) that was prepared for the project shows that Dalits (occupational caste) are the single most vulnerable group in the project area. The total number of Dalit households that would potentially be affected at upstream and downstream project sites is 274. Of these, 28 are headed by females. There are a further eight female-headed households belonging to the Chhetri and Thakuri castes.

    Scope of Land Acquisition and Resettlement Land Requirement The land requirement for the construction of the dam and reservoir and for downstream project sites is 2,320 ha. This comprises the reservoir area to be flooded (2,060 ha), a 6 m high flood zone (FSL to FSL+6 m) to cover the probable maximum flood level (106 ha) and other downstream infrastructure/facility sites (154 ha). A further approximately 11 ha of land is to be leased for the duration of the construction period.

    Project Land Requirement

    Project Component Permanent Acquisition (ha)

    Temporary Acquisition

    (leasing) (ha) Reservoir (FSL 1,284 m) excluding dam and spillway sites 2,060 - Reservoir flood zone (1,284-1,290 m) 106 - Dam and spillway sites 36 - Power station area (surface developments) 20 - Re-regulation weir (including inundation area) 62 - Access roads to spillway and dam site 15 - Workforce camp 21 6 Work area* - 5 Total 2,320 11

    * Excluding camps, offices and work areas within the reservoir area. Of the 2,166 ha to be acquired for the reservoir area and flood zone, 619 ha is private cultivation land. The 154 ha of land required for the downstream sites consists of 38 ha cultivation land. A no habitation zone up to 90 m above the flood zone has also been proposed for safety reasons. This zone encompasses 1,425 ha of land of which approximately 230 ha is cultivation land (some of which belongs to households located below the no habitation zone). The cultivation of land and harvesting of forest resources in the no habitation zone will continue wherever possible but households located in this zone will have to be relocated. Further restrictions on habitation may occur above the no habitation zone to ensure that people do not reside in areas of potential landslide hazards. A total of 657 ha of private cultivation land will be acquired, consisting of (a) 619 ha in the reservoir area and flood zone (below FSL+ 6m), which excludes some 9 ha of abandoned land; and (b) 38 ha at downstream project sites. Of the cultivation land below FSL+6 m, 454 ha is irrigated and 165 ha rainfed. Households It is estimated that the reservoir and downstream developments will affect 2,125 households. Of these, 1,680 will be affected by the reservoir and an estimated 445 by downstream project sites. Of the 1,680 households affected by the reservoir, 490 live in nearby settlements above the reservoir no-habitation zone (i.e. above FSL+96 m).

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    Estimate of Affected Households

    Project Component Affected

    Households

    Households Requiring

    Resettlement Reservoir & Dam Site: - below FSL+6 m 933 933 - between FLS+6 m and FSL+96 m 257 257 - above FSL+96 m 490 122 Dam Access Road (estimate) 40 0 Power Station Site & Access Road 35 21 Work Areas (estimate) 20 0 Workforce Camps/Offices (estimate) 200 30 Re-regulation Weir (estimate) 150 30 Total 2,125 1,393

    The 1,680 households affected by the reservoir is an increase of 150 from the 1,530 households recorded in the 1997/98 household survey. This is mainly due to the expansion of the Deura market area (at the headwaters of the reservoir) following construction of the Dadeldhura-Chainpur road. Other areas where fairly substantial household increases occurred are Dhungad VDC, Thalakanda VDC, Dangaji VDC and Belapur VDC. Based on the resettlement principles discussed in the RP, it is estimated that 1,393 (65.5%) of the 2,125 households affected by the reservoir and downstream project sites will be resettled, some of whom are located above FSL+96m. The remaining 732 affected households (34.5%) will not be displaced. The population to be resettled is estimated at 11,866. Of the 1,393 resettled households, it is estimated that 1,202 (86.3%) will qualify for relocation to project sites in the Terai because of severe impacts on their livelihoods, while 191 (13.7%) will relocate locally to allow them continued access to their unaffected land.

    Estimate of Affected Households

    Resettlement Category

    Estimated Number of Households by Project Component

    Population Reservoir

    Other Project

    Components

    Total Households Below

    FSL+6 m

    Between FSL+6 m & FSL+96 m

    Above FSL+96 m

    Relocate Terai 886 154 122 40 1,202 9,378 Relocate locally 47 103 - 41 191 1,488 Not displaced - - 368 364 732 5,355 Total 933 257 490 445 2,125 16,221 Buildings and Community Services/Facilities In addition to the approximately 1,600 buildings of affected households, eight schools in the reservoir area (five primary and three secondary) will have to be relocated. In addition, a school in Bandungrasen close to the site of the proposed permanent camp may be affected depending on the final location of the camp. Other services and facilities to be relocated include three health sub-posts, a private health post, a VDC office, a police post and 20 temples/shrines. Eight permanent footbridges and two cable slides will be inundated by the reservoir. One of the footbridges was destroyed in the 2000 floods and is currently being replaced. Two temporary wooden bridges erected annually during the dry season will also be inundated. A community hydroelectric scheme (in Ward 6 of Thalakanda VDC) with 225 beneficiaries will also be affected by the reservoir.

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    Trees It is estimated that more than 15,000 privately-owned trees could be affected by reservoir inundation and developments at downstream project sites. The reservoir will also inundate forest and river resources used to supplement household subsistence requirements, and therefore important components of household economies.

    Consultation and Disclosure Overview Consultations with affected communities and other interested stakeholders are essential in the design and assessment of a development project, particularly large-scale infrastructure projects such as the WSHEP which involve land acquisition and resettlement. On the WSHEP, formal community consultations occurred during preparation of the EIA (1997-1999), as well as more recently (2006-2007). The EIA consultation programme, which commenced in February 1997, included: (a) community meetings; (b) a socio-economic survey of directly affected households, supplemented with additional qualitative research; (c) periodic distribution of project information sheets; (d) discussions with landholders, district officials and other stakeholders in potential resettlement areas in the Terai; and (e) public hearings to conclude the consultation process. A comprehensive socio-economic survey of 1,683 households living within and around the proposed reservoir area and at other project sites was undertaken in 1997/98 to obtain baseline household data and to provide respondents with the opportunity to express their views about the WSHEP. During the questionnaire survey, respondents were asked to indicate whether they were positive or negative towards the project. Nearly 79% recorded a positive response, 14% registered a negative attitude, with just over 7% not responding to the question. The 2006 sample survey recorded similar responses: nearly 80% of the 230 households were positive towards the project and only 3% negative. During preparation of the EIA, the community consultation process was dominated by one issue, namely demands for specific exchange ratios for replacement land (ranging from three to seven units of replacement land for every one unit lost). The community meetings that were held in November 2006 and April 2007 reconfirmed the communities overall acceptance of the project, although these demands were again presented. A negotiation structure (representing WSH, affected communities and relevant regional/district government officials) is currently being established to finalise compensation entitlements. Additional demands/requests included: (a) information about project developments should be made available to affected communities; (b) project agreements should be made in consultation with affected communities; (c) WSH should reduce the size of the reservoir so that Deura market can be saved or justify why a reduction is not feasible; (d) resettlement should be performed in accordance with international standards and principles; (e) there should be sufficient water in the Seti River downstream of the dam wall for people to undertake their normal activities; (f) new facilities should be established in the downstream area to cater for potential population increases; (g) preference should be given to local people for employment on construction jobs; at least one person from each effected household must be employed on the construction works; and (h) the project should provide training to local people to develop their skills for employment; training should be conducted prior to the commencement of construction so that local people can qualify for semi-skilled/skilled employment.

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    Community Consultation Structure The following project-related community committees were established during the course of 2007-2008:

    two committees representing affected communities in the reservoir area (West Seti Concern Committee and West Seti Concern Main Committee);

    one committee representing riparian villages in the area between the dam wall and the power station site (West Seti Downstream Concern Committee); and

    one committee representing affected households at the power station site (West Seti Power Station Concern Committee).

    The committees were established at the initiative of the concerned communities. The West Seti Concern Committee was established in March 2007, while the West Seti Concern Main Committee was formed in December 2007 following apparent dissatisfaction with the composition of the former committee. To improve the consultation process, WSH has requested the amalgamation of the two committees or the creation of a coordination mechanism between the committees. Although there is an apparent willingness to interact and cooperate, efforts at combining the two committees or creating a joint forum have thus far been unsuccessful. WSH has had limited contact with the West Seti Concern Committee, mainly because of the Committees insistence that their demands are met before any interaction can occur. Very good working relationships have been established with the other three committees and they participate in all relevant project activities. In July 2008, representatives from the three committees, plus some from the West Seti Concern Committee, attended a WSH workshop in Dhangadhi to discuss compensation and resettlement principles. The resolutions tabled by the community representatives (detailed in RP Supporting Document 13) are generally in line with current international resettlement practices. A properly constituted community consultation and participation structure is an important component of the resettlement programme. WSH will continue to work with the established committees and support the creation of further committees at other project sites. Key activities that will be initiated soon are the establishment of institutional mechanisms such as the Resettlement Steering Committee and District Coordinating Committees (DCCs) to ensure proper coordination, appropriate negotiation avenues and the full involvement of affected households in the compensation and resettlement planning process. Consultation Staff Seven Community Liaison Assistants (CLAs) have been appointed from the affected communities during the course of 2008 (with a further 13 to be employed) as part of the projects consultation programme. An exercise was recently completed for the recruitment of eight Communication and Consultation Officers (CCOs) to manage the project information centres, supervise the CLAs and assist with other consultation activities. The CCOs will be appointed in November 2008. Information Offices Seven information centres have been established during the course of 2008 as part of the projects communications programme. Four of the centres are in the reservoir area (Dadeldhura, Baitadi and Doti Districts), one in the downstream area (Doti District), and two in the resettlement district of Kailali (Dhangadhi and Attariya). Centres will also be opened in Bajhang District (reservoir area) and in Mahendranagar (transmission line). All relevant project documents are available at the centres, which also function as meeting points for community and project representatives.

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    Resettlement Principles and Entitlement Matrix The following resettlement principles have been prepared for the project, based on ADB policies and local practice, to guide project preparation and implementation:

    Principle 1: Population displacement and resettlement will be minimised wherever possible. Principle 2: All project impacts will be identified and all losses properly recorded. Principle 3: Land acquisition, resettlement planning, budgeting and implementation will be an

    integral part of the project. Principle 4: Ongoing and meaningful public consultation will occur. Principle 5: Affected persons will be assisted to restore, and ultimately to improve, their

    livelihoods. Principle 6: Vulnerable groups will be specifically catered for. Principle 7: Host communities will be considered as project-affected parties. Principle 8: Grievance and monitoring procedures will be in place. Principle 9: Resettlement planning will take account of the regional socio-economic development

    context. Principle 10: Resettlement planning and implementation will comply with all relevant legal and

    policy provisions. These principles have formed the basis for the preparation of the projects Entitlement Matrix, included in Appendix 1 of the RP.

    Resettlement Framework Three broad relocation options will be available on the project: (a) relocation to project sites in the Terai; (b) relocation to local (project area) sites; and (c) self-relocation to an area identified by the household. Household Classification Affected households will initially be grouped into two categories, namely located inside or outside project displacement areas. Through a participatory assessment with the projects community consultation structure, the resettlement eligibility of each household will be finalised, based on the following considerations:

    Households located in project displacement areas (e.g. reservoir and power station site). These households will either (a) relocate to a project resettlement site or (b) self-relocate to an area of their own choice. The former will entail relocation to project sites in the Terai or to local sites established in the reservoir periphery or downstream area. Eligibility criteria for relocation to Terai sites will include (a) severity of impact on household livelihoods and (b) social considerations. Households whose livelihoods are severely affected by the loss of productive resources will be able to choose between relocation to a Terai resettlement site, a local resettlement site or self-relocation to an area of their own choice. Households who are only marginally affected (e.g. small percentage land loss) will generally be relocated locally but may qualify for the other relocation options because of social considerations (e.g. dependency on households resettled to the Terai).

    Households located outside project displacement areas, consisting of households suffering

    permanent or temporary loss of private productive assets. The former will either remain in situ if their livelihoods are marginally affected, or qualify for voluntary resettlement if their livelihoods are severely affected or because of social considerations. Voluntary resettlement may entail relocation to a project resettlement site or self-relocation, depending on the households socio-economic circumstances. Households whose private productive assets are temporarily occupied

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    by the project will remain in situ and compensated for production losses according to a formal lease contract. A third group of households in this category consist of households who do not suffer any permanent loss of private assets but who may qualify for voluntary resettlement because of social considerations (e.g. vulnerable households from socially excluded caste groups whose livelihoods are based on socio-economic relationships with resettled households).

    Appropriate criteria will be applied for the determination of eligibility for the various relocation options. This will include percentage of cultivation land loss, the size of a households landholding after land acquisition and social considerations (e.g. the households development cycle, off-farm economic activities and the households dependence on displaced households within the community). Relocation to Project Sites in the Terai Terai Land Requirement and Availability Investigations were undertaken during 1997-1998 and again in 2007 to assess the availability of land in the far-western Terai for resettlement purposes. The initial investigations focused mainly only Kailali District, while the recent investigations also included portions of Kanchanpur and Bardiya Districts. Based on the estimated number of households to be resettled to the Terai, as well as the various land entitlements that these households will receive, it is estimated that approximately 2,300 ha of replacement land would be required in the Terai as a total demand scenario i.e. assuming that all the estimated 1,202 household qualifying for relocation to Terai project would exercise this option. A total of 38 VDC areas in Kailali, Kanchanpur and Bardiya Districts were investigated and contact made with more than 200 large landowners. Most of these VDCs are in Kailali District. The investigations had the following purpose: (a) to identify owners of larger landholdings willing to sell their land; (b) to briefly assess the physical characteristics of land that is available for purchasing; (c) to establish current land use; (d) to record other pertinent details of the land (e.g. GPS location and names of surrounding or close to the land); and (e) to establish broad land values. During the investigations, approximately 1,954 ha of land was identified as being available for purchasing, 1564.44 ha in Kailali District, 264.43 ha in Kanchanpur District and 125.33 ha in Bardiya District. A further approximately 1,423 ha of land was reported as being available, either telephonically or through visits to the WSH office in Kathmandu by landowners not contacted during the field investigations. This land is mainly located in Bardiya District. Although the investigation has shown that land is available for the establishment of project relocation sites in the far-western Terai, many of the identified land parcels were earlier confiscated during the civil unrest and redistributed. A central-level directive was recently issued for all confiscated land to be handed back to the bona fide owners. A further factor that will have a bearing on the location and establishment of Terai relocation sites is community preferences for sites that are not close to the Indian border or major rivers, and that are large enough to accommodate one community in one place. While these preferences will be accommodated as far as possible, it is unlikely that blocks of land large enough to accommodate a large community will be available. However, to maintain social relations and minimise the impact of relocation, villages will be relocated to adjacent blocks of land or blocks that are in the same vicinity. The most important considerations in the selection of resettlement sites will be the cultivation potential of the land, availability of farming infrastructure such as irrigation and proximity to social infrastructure and services. Because of these requirements, and given the nature of land-use patterns in the Terai, it is unlikely that community preferences can be met in all instances. Some compromises will be necessary, and reservoir area communities will therefore fully participate in the final selection and allocation of sites.

  • WEST SETI HYDROELECTRIC PROJECT RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT COMPONENTS (Rev-4) EXECUTIVE SUMMARY

    WEST SETI HYDRO LTD. OCTOBER 2008 XX

    Terai Land Purchase Procedure The smooth implementation of the resettlement programme will require the purchase of replacement land in the Terai over a relatively short period, so that the land titles of households to be relocated to these sites can be exchanged over a similarly short period. Offers to purchase will be made following detailed feasibility assessments of preferred land blocks/parcels. The procedure for purchasing replacement land will be: (a) expression of interest to sell land; (b) detailed land assessment; (c) purchasing negotiations and agreements; (d) farm/resettlement site planning; and (e) allocation of farming units to households. Terai Subsistence Landholding A key requirement is to ensure that the livelihoods of household relocating to project resettlement sites in the Terai are not compromised. Landowning households relocating to project sites in the Teria whose land entitlement as determined through a set calculation is less than the subsistence land requirement in the Terai, will be allocated a subsistence landholding (amounting to 1.54 ha based on a 50-50 irrigation-rainfed productivity split). An estimated 536 small landholders will benefit from this significant livelihood restoration initiative. The restoration of household subsistence is the most important component of relocation to the Terai. Other resettlement requirements, such as the replacement of and access to schools, depend on the actual areas finally selected for resettlement. In most cases, resettlement areas will be located within/around clusters of existing settlements, most of which have essential services such as schools and health sub-posts. Once resettlement areas are finalised, a full participatory assessment, involving resettler and surrounding communities, will be undertaken of existing community services with the emphasis being on upgrading and extension of these facilities to the benefit of both resettled and local communities. Local Relocation The estimated 191 households that will relocate locally will either move within their existing settlements (as in the case of households at the power station site), to nearby villages (as in the case of some households in the Deura market area) or to a new (project relocation) site. The establishment of new settlement areas, where required, will be undertaken in consultation with the concerned households. Affected community structures will be replaced in areas identified in consultation with affected communities and authorities. Measures will be introduced to restore access around the reservoir in general and access to schools in particular. In addition, funds will be made available to suitable NGOs or community-based organisations to support the general development of settlement areas around the reservoir. Self-Relocation Households will also be offered the opportunity to relocate to areas of their own choice so as to be near relatives, to consolidate existing agricultural or business activities elsewhere or to pursue new livelihood earning activities.

    Compensation and Livelihood Restoration Since the WSHEP is a private venture, land and other household assets will be acquired through negotiation. Negotiations will take place within the framework of the principles contained in the RP, which in turn take cognisance of the requirements of the Land Acquisition Act (1977). District Coordinating Committees (DCCs) and a central Resettlement Steering Committee (RSC) will be established to coordinate the negotiation process, promote transparency of procedures and ensure overall compliance to GoN legislation. The DCCs and RSC will assume most of the functions of the Compensation Determination Committees (CDCs) provided for in the Land Acquisition Act.

  • WEST SETI HYDROELECTRIC PROJECT RESETTLEMENT PLAN: RESERVOIR AREA AND DOWNSTREAM PROJECT COMPONENTS (Rev-4) EXECUTIVE SUMMARY

    WEST SETI HYDRO LTD. OCTOBER 2008 XXI

    WSH will provide assistance to district land revenue offices to streamline the acquisition process. Furthermore, WSH will establish a Resettlement and Development Division (RDD), with a number of dedicated Units, to manage and coordinate all resettlement-related matters. The RDDs Land Acquisition Section will work with and support district land revenue officials during the acquisition process. WSH will also contract qualified NGOs to undertake social preparation programmes amongst the affected households, including assistance to land owners to update their ownership papers. An Entitlement Matrix has been prepared for the project, designed to ensure fair and prompt compensation for losses attributed to the project, and to guide livelihood restoration efforts. The Matrix, which is based on the principle of compensation at full replacement cost, describes compensation principles and entitlements for: (a) houses and other structures; (b) land; (c) trees and crops; and (d) community facilities. It also defines resettlement and rehabilitation support measures. The Entitlement Matrix is included in Appendix 1. The key entitlements are summarised below. Residential and Business Structures All houses affected by the project will be valued at full replacement cost. Households can choose between the provision of replacement housing or cash compensation. Other privately-owned buildings and structures such as water mills will be valued at replacement cost and compensated in cash. Owners may salvage reusable materials from all affected buildings and structures with no deduction from the compensation entitlement. Households relocated to project sites in the Terai will be provided with a tube well for domestic water supply and a pit latrine. Where required, households relocated to local relocation sites will be assisted with the establishment of new water supplies. They will also be included in a sanitation programme. Relocated households will additionally be assisted with the construction and installation of improved cooking stoves (ICS). These stoves will be built on site, using local materials and skills. A qualified NGO will be contracted to train local women as ICS builders and technicians, and provide periodic support to, and monitoring of, the ICS programme. Business structures will be compensated in the same manner as residential houses. Compensation for any loss of perishable stock will be based on retail cost prices. In addition, business development plans and viability studies will be undertaken for affected businesses to ensure that they are effectively relocated and re-established. Of particular importance in this regard will be the re-establishment of the existing market area in Deura along the replaced section of the Chainpur road. Land and Other Natural Resources All registered land permanently acquired by the project will be compensated at full replacement cost, with the productivity of land (irrigated or rainfed) recognised in the amount of exchange land provided. Compensation will either be in the form of replacement land or cash. WSH will undertake initiatives (e.g. appointment of suitably qualified NGOs to undertake social preparatio