I

SOCIAL MONITORING REPORT

Semi-Annual Report

(January-June 2017)

NEP: Integrated Urban Development Project (IUDP) L2851-NEP; G0284-NEP

Prepared by Department of Urban Development and Building Construction for Ministry of Urban Development and the Asian Development Bank

This social monitoring report 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.

In preparing any country program or strategy, financing any project, or by

making any designation of or reference to a territory or geographic area in

this document, the Asian Development Bank does not intend to make any

judgments as to the legal or other status of any territory or area.

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CURRENCY EQUIVALENTS

(As of 30 June 2017)

Currency unit - Nepalese (NPR)

NPR 1.00 = $0.009667

$ 1.00 = 103.44 NPR This social monitoring report 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. In preparing any country program or strategy, financing any project, or by making any

designation of or reference to a particular territory or geographic area in this document, the Asian

Development Bank does not intend to make any judgments as to the legal or other status of any

territory or area.

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TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................. 1 2. PROJECT BACKGROUND ................................................................................................ 1 3. OBJECTIVE, APPROACH AND SCOPE OF SEMI-ANNUAL MONITORING .............................. 2

3.1 Objective ................................................................................................................ 2 3.2 Approach ............................................................................................................... 2 3.3 Scope of Semi -annual Monitoring ........................................................................... 2

4. CHANGES IN SOCIAL SAFEGUARD SCOPE ....................................................................... 3 5. SOCIAL SAFEGUARD MONITORING PARAMETERS ......................................................... 3 6. STATUS OF THE SOCIAL SAFEGUARD IMPLEMENTATION ................................................ 3 6.1 Status of updated Resettlement Plan .................................................................. 3

7. SAFEGURD IMPACTS ..................................................................................................... 4

8. LAND ACQUISITION AND COMPENSATION DISBURSEMENT STATUS ............................... 6

9. PROCESS FOR ACQUIRING LAND FOR LANDFILL SITE ...................................................... 8 10. GRIEVANCE REDRESS MECHANISM ................................................................................ 8 11. ESTABLISHMENT FOR SAFEGUARD DESK ....................................................................... 9 12. PUBLIC CONSULTATION................................................................................................ 9 13. ISSUES ........................................................................................................................ 9 14. STATUS OF COMPLIANCE WITH LOAN AND GRANT COVENANTS ................................... 10

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List of Acronyms and Abbreviations ADB Asian Development Bank

APs Affected Peoples

CDC Compensation Determination Committee

CDO Chief District Officer

DAO District Administration Office

DDR Due-Diligence Report

EMP Environmental Management Plan

GRC Grievance Redress Committee

GRM Grievance Redress Mechanism

HH HousehHolds

IEE Initial Environmental Examination IUDP Integrated Urban Development Project JSMC Janakpur Sub-Metropolitan City

LACFC Land Acquisition and Compensation Fixation Committee

MoFALD Ministry of Federal Affairs and Local Development

MoUD Ministry of Urban Development NSMC Nepalgunj Sub-Metropolitan City

PCO Project Coordination Office

PIU Project Implementation Unit

PMSC Project Management Support Consultant

PPTA Project Preparation Technical Assistance

RoW Right of Way

RP Resettlement Plan

SLFS Sanitary Land Fill Site

SMC Sub-Metropolitan City

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SMR Safeguards Monitoring Report VDC Village Development Committee

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DEFINITION Acquisition: Acquisition of land and other assets for the purpose of development projects in

accordance to prevailing Land Acquisition Act 1977 (2034 BS). Displaced Persons: Affected persons are those who are physically displaced (relocation, loss of

residential land, or loss of shelter) and economically displaced (loss of land assets, income sources, or

means of livelihood) as a result of involuntary resettlement of land, involuntary restrictions on land

use or on access to legally designated parks and protected areas. Indigenous People: Nepal indigenous/nationalities/tribal Act 2001defines Ethnic/ Indigenous Peoples as; “people having their own mother tongue, distinct traditional values, and cultural identities, including social structure and written/non -written history are indigenous and nationalities

population.” The National Foundation of Indigenous Nationalities (NFIN) has declared 59 groups as

ethnic nationalities. Rehabilitation: The measures taken to mitigate social impacts, including compensation, resettlement

and rehabilitation allowances where required. Replacement Cost: The market value of a project affected assets. For agriculture land, this includes

reference to land of equal size, type and productive potentiality in the vicinity of the affected land and

land preparation costs where required. For houses and other structures, this includes reference to the

market price of materials and labor, and the cost of transporting materials to the building site. The

replacement cost further includes the cost of any registration and transfer taxes for land and buildings. Resettlement: Resettlement denotes the consequence that occurs due to acquisition of land and other

assets as well as the entire process and activities related to acquisition and implementation of

resettlement plan in accordance to prevailing Acts. Right of Way: Right of way means the land acquired for the project purposes. Generally, government

declares 50 meter for National highway and 30 meter for feeder roads. Sub project Level Grievance Redress Committee: Village Development Committee or municipality

level committee established to assist the affected people, legally constituted committees for land

acquisition and project authorities, monitoring of implementation issues and community reactions and

grievance resolution. Severely Project Affected Family: Family having more than 10 percent loss of total landholding or

income is considered as severely affected family. Titleholder: The person in whose name the project-affected land, structure, business is registered and

who is authorized to receive the compensation granted for the loss of business or acquisition of the

land and assets.

Vulnerable Persons: The disadvantaged persons such as disabled, women headed households,

handicapped, independent elderly persons (70 years and above age), and households with disable

persons, ethnic occupational caste and below poverty level households.

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1. INTRODUCTION 1. This report describes the implementation of social safeguards activities, covering the period

from January to June, 2017. The Social Monitoring Report (SMR) covers in particular the progress of

the implementation of the Updated Resettlement Plans of the four project municipalities, issues

identified during implementation of project activities, and compensation distribution and deed transfer

of affected assets. It also describes the need of preparation of updated resettlement plan for

Janakpur municipality.

2. PROJECT BACKGROUND

2. The project aims to improve the quality of life, promote socially inclusive development and

support increased economic growth in the four municipalities/Sub-Metropolitan City (SMC) in Nepal,

namely Dharan, Janakpur, Siddharthanagar and Nepalganj. These goals will be achieved through

improvements in the effective and efficient provision of affordable basic municipal services. These

improvements will focus on water supply, storm water drainage, solid waste management, and

urban road and lanes. All these activities together will constitute an integrated urban development

package for each municipality.

3. During the PPTA, resettlement plan of three municipalities/SMC i.e. Janakpur,

Siddharthanagar and Nepalganj was prepared and endorsed by Government, concerned

municipalities and ADB in September 2011. Further, the approved resettlement plans were

prepared on the basis of preliminary project design. Therefore, the plans were updated to

accommodate additional impact identified while finalizing detail engineering design.

Accordingly, updated resettlement plans were prepared, reviewed and submitted to ADB.

Proposed sub-projects components is given in table below;

Table 1: Proposed Sub-Project Components

Subproject Municipality/SMC Land Acquisition Nepalgunj Siddharthanagar Janakpur

Storm water drainage

Improvement and Development of storm water drainage covering majority area of municipality

Improvement and Development of storm water drainage covering majority area of municipality

Improvement and Development of storm water drainage covering majority area of then municipality

Drainage will be constructed within RoW in Janakpur and Siddharthanagar whereas some portions of land are acquired in Nepalgunj.

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Solid waste management

Construction of sanitary landfill site at Ward no . 7 of Hirminiya VDC and a total of 8.47 ha of land is required for the development of landfill site.

Construction of sanitary landfill site at ward no 8 of Patkhauli VDC and total of 4.06ha of land is required for the development of landfill site.

The alternative site is identified at Bhoyal, JSMC-18 and land acquired and is being finalized. Alternative Transitional plan has been prepared for temporary management of waste

Nepalgunj SMC and Siddharthanagar Municipalities have already acquired land from private owners; some disputes for additional land required is still due and Janakpur SMC has acquired land as agreement between Guthi Trust and Municipality has been done.

Roads and lanes

Reinstatement of Urban Roads

Reinstatement of Urban Roads

Reinstatement of Urban Roads

The required land falls under existing RoW which is Determined on 1999 by the Municipalities/SMC based on Building Bylaws.

Source: Resettlement Plan 2011, 14 T A 7727 NEP; Field visit 2017

3. OBJECTIVE, APPROACH AND SCOPE OF SEMI-ANNUAL MONITORING

3.1 Objective

4. The objective of the semiannual monitoring report is to assess progress made in

implementation of safeguard plans in subproject roads, drainage and solid waste management of

the project, including compensation payment, deed transfer of affected plots, progress on

reinstatement of public utilities and issues identified during implementation.

3.2 Approach

2. The following tasks were undertaken for preparing this report:

Review the related project documents and field visits

Discussion with the PIUs, DSCs and other relevant stakeholders

3.3 Scope of Semi -annual Monitoring

3. The social safeguard monitoring is guided by the ADB Safeguard Policy Statement 2009,

Resettlement Framework of IUDP, Land Acquisition Act of Nepal 1977 (2034 BS) and other

relevant policies and guidelines. This monitoring report is focused on the social safeguard

implementation, including appropriate measures to minimize the resettlement impact during project

implementation, compensation payment to the affected land and assets, and measures to redress

the grievance appeared during project implementation

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4. It has been agreed to prepare and submit social safeguard monitoring semi-annual report to

provide the status of social safeguard plan implementation of IUDP. The reporting period covers 6

months from January to June 2017. The report provides updated resettlement plan

implementation status, issues identified and mitigation measures, and safeguard monitoring

activities carried out during the period.

4. CHANGES IN SOCIAL SAFEGUARD SCOPE

8. During the PPTA, resettlement impacts were not envisaged as significant as observed

in implementation period. The change in impacts seen in the implementation period

compelled to updated resettlement plan as SWM projects required more land for access

road and sanitary landfill sites. Moreover, additional issues surfaced during the

implementation period, necessitating to updated resettlement plans along with additional

compensation payment due to change in design and acquisition of additional land for road

access and relocation of sanitary landfill site.

5. SOCIAL SAFEGUARD MONITORING PARAMETERS

9. The following parameters have been applied during social safeguard monitoring:

Progress on land acquisition and compensation payment

Procedure of compensation rate determination and compensation payment delivery system

(easiness, transparency etc.)

Rehabilitation of public utilities

Public consultation and disclosure activities

Status of updated resettlement plans

Exploration and finalization of sanitary landfill site

Status of vendor and hawkers due to intervention drainage system

Status of Grievance Redress Mechanism

6. STATUS OF THE SOCIAL SAFEGUARD PLAN IMPLEMENTATION

6.1 Status of Updated Resettlement Plan

10. PPTA has provisioned that existing plan will be updated and submitted to ADB for

concurrence prior to commencement of civil works if additional losses found during detailed

design. As per the provision, three updated RPs have been received from Janakpur,

Siddharthanagar and Nepalgunj Municipalities/SMC and reviewed by the PCO/PMSC and

submitted to ADB. A resettlement plan was also prepared for Dharan SMC to address the

need to acquire additional private land to construct a reservoir.

11. During PPTA, resettlement impact couldn't fully envisage actual land requirement to

implement Water Supply Sub-Project in Dharan SMC. However, final detailed design showed

that the project would require some private land for construction of reservoir. Hence, an updated

Resettlement Plan has been prepared. Three households have lost 729 sqm of land, comprising

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5 plots. The Resettlement Plan has been reviewed by the PCO/PMSC and submitted to ADB.

12. Janakpur SMC has explored alternative landfill site at Bhoyal,JSMC-18 which is yet to be

finalized and the impact assessment of affected land is due. As the proposed land for

alternative landfill site is under Guthi trust, an agreement between the municipality and Guthi

trust has been signed. Once land for landfill site is finalized, an updated resettlement plan

needs to be prepared as an integrated report, incorporating road and drainage related

activities..

13. Likewise, updated resettlement plan of Siddharthangar Municipality is being prepared.

Issues related to landfill site and access road has to be incorporated in the plan. The PCO is

constantly following up to prepare an updated resettlement plan. The DSC has informed that

they are working on the plan and will submit it very soon.

7. SAFEGURARD IMPACTS

14. Safeguard impact in Dharan SMC was minimal as the cost of acquiring some portion of land

for reservoir installment and associated compensation was paid by the municipality..

15. The updated Resettlement Plan for storm water drainage and road subproject has been

prepared in Janakpur SMC. The detailed design identified no additional impact as most of the

structures that have been demolished are within the existing RoW. So, no additional resettlement

impact has been envisaged. Janakpur SMC will explore alternative places for Vendors/hawkers in

order to deal with any temporary impacts that may occur during construction period. The

Janakpur SMC ensured that all the demolitions in proposed road and drainage section were within

the RoW and they were cleared by the Janakpur SMC. Transitional plan has also been prepared

to manage SMC waste until an alternative landfill site is identified and formally acquired. The

landfill site that was previously fixed at Fulgama VDC had some disputes, resulting in cancellation

of that site. Since construction contract has been awarded for storm water drainage and

road, the location for the landfill site has to be finalized at Bhoyal, JSMC-18 soon. The land is

under ownership of Guthi Sansthan and agreement has been made between the Guthi trust and

Janakpur SMC. Total area of land is about 8.49 hectare, comprising 32 plots. The JSMC is working

on to acquire land by identifying losses incurred by the project interventions. The losses inventory

is due as DSC safeguard expert is not available in Janakpur.

16. Resettlement impacts have not been seen in Siddharthanagar municipality on storm water

drainage and road subproject as the structures demolished along the road and drainage fall under

existing RoW which was fixed by the municipality in 1999 on the basis of Building Bylaws. Thus,

no scope of resettlement impact as been found in aforesaid subprojects. Further, the house

owners are voluntarily demolishing their houses as requested by the Municipality, according

to Project Manager. Some trees have to be cut down in Sanitary Landfill Site during construction

of landfill site structure. The tree owners themselves removed and consumed the trees, thus

there was no need of compensation payment. Vendors/hawkers have shifted their businesses

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to different places during drainage and road construction, and will reinstate their businesses in

original places after the completion of construction works. Hence, compensation was not paid

as no impact was recorded on their livelihood due to project interventions. Further, as reported

by the DSC, the Municipality is planning to build permanent structures for vendors/hawkers in

the specific locations such as Khajana path, Maitri path and Bimanghat path.

17. Standing cash crops have been damaged while transporting construction materials to

construct the access road. The loss of inventory has been recorded These losses were identified

in Lumbini road to Maudihawa Chowk through Galamandi and Durga Khola road. The payment

of these losses will be made through the contractor's Bill of Quantity (BoQ). Necessary

procedures for compensating the losses have already been initiated. The original design in the

section of Anchalpur Chowk to Sano Dumdumwa Khola diversion drain was stone pitching and

trapezoidal structure, resulting in the requirement of additional land beyond the Right of Way

(ROW). However, the local people demanded compensation for the loss of land along with

crossing structure. With a view to avoid possible complication while acquiring additional land, the

DSC redesigned the proposed structure in rectangular shape that does not need additional land.

18. Alternative access road to sanitary landfill site was explored and land acquisition for the

road has been is completed. A total 0.4 ha of private land from 15 households was acquired and

compensation to the land was determined on the basis of replacement value, which amounted to

NRs. 3,256,562.50. However, two affected households were reluctant to receive the compensation

amount, claiming that the amount fixed was less than the market price. The PMSC expert visited

the site and consulted with affected persons and other community people on the amount

determined by CDC that was based on replacement value. The team concluded that the land price

escalation is an obvious phenomenon and was going on for some time and the land rate fixation

for the project was done two years ago. The claim made by the two affected households was not

found logical and recommended to DSC to deposit the amount in District Administration Office.

19. Significant Resettlement impacts have not been seen in Nepalgunj SMC on storm water

drainage and road subproject as the structures demolished along the road and drainage do not fall

under existing RoW, which was fixed by the Nepalgunj SMC in 1999 on the basis of Building

Bylaws. However, during physical construction, some impacts on private land, structures and

access to private houses have been seen due to construction of drainage. The complaints were

also submitted in Nepalgunj SMC for the impacts incurred by the project interventions. Some

private land has been affected during construction of Kontipur outfall system due to trapezoid

design and earthen nature of the drainage, resulting in lose of access to the agriculture field. For

this, the Nepalgunj SMC has installed Hume pipes sufficiently to ensure easy crossing to the

agriculture field. It has been observed that no more issue remains in this regard.

20. Responding to the demand of landowner to reinstate boundary wall and latrine damaged

during construction of Dondra Khola storm water drainage at ward no. 15, Koreanpur, Nepalgunj

SMC, the Nepalgunj SMC agreed to reinstate the damaged boundary wall and construct improved

toilet with septic tank. The reinstatement and construction of these loses has been completed.

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Two houses in Paraspur created obstructed the construction of the drainage by not demolishing the

front part of their houses. It was reported by the DSC that the house owner themselves built the

house with the help of community people, as no severe impact has been recorded by these losses.

The Mission noted that most of the corrective actions regarding social safeguards recommended by

previous review mission have been complied with. The mission raised serious concerns on delay in

implementation of agreed action. During a visit of the Mission, the complainer informed the Mission

over the phone that he had requested to provide cash compensation instead of construction of toilet

in Koreanpur. The Nepalgunj SMC constructed the toilet however the owner was not satisfied and

demanding some cash from the NSMC. The NSMC provided NRs 58,000 as cash compensation.

NRM is satisfied with the process adapted to resolve his complain and decided to close the case.

8. LAND ACQUISITION AND COMPENSATION DISBURSEMENT STATUS

21. Project Implementation Unit (PIU) of Nepalgunj and Siddharthanagar distributed land

compensation for landfill site to the landowners and the ownership transfer of acquired land has

also been completed. Nepalgunj SMC acquired 8.47 ha land from four landowners and the total

land acquired is about 1 ha more than the original plan. Nepalgunj SMC had to acquire additional 1

ha of land because the balance land lost it usefulness for landowner as it lies in middle part of the

acquired land.. The field visit to Nepalgunj SMC to investigate the case found that the payment was

made as a replacement cost by following negotiation process as per Land Acquisition Act 1977,

where landowners were asked to come to negotiation in District Administration Office (DAO)

under Land Acquisition and Compensation Fixation Committee (LACFC) and consensually finalized

the unit rate. Landowners are satisfied with the payment they received from the PIU. 22. Similarly, a total of 4.06 ha of land were acquired from one landowner in Siddharthanagar.. 1.35 ha land is not required due to technical reasons. The payment m a d e for landfill site land was based on unit rate mentioned in PPTA report in which cost variation was not identified in line with the PPTA report. The payment has been made as a replacement cost, which was based on market and government unit rates and was fixed by Compensation Determination Committee (CDC) for fixation of compensation amount. No im pac t on structure has been observed in both landfill sites in Siddharthanagar and Nepalgunj, except few private trees in Siddharthanagar landfill site. It has been agreed with tree owner in Siddharthanagar that they would remove the trees inside the construction locaton without compensation. However, PIU would be responsible to pay compensation for remaining trees outside the construction location as per market and district forest office rates. Some 25 trees have already been removed by tree owner.

23. Moreover, a total 0.4 ha of private land owned by 15 households was acquired for access road to sanitary landfill site in Siddharthanagar municipality and cost of land has been determined as a replacement value, which amounted to NRs. 3,256,562.50. However, two affected households were reluctant to receive the compensation amount, claiming that the amount fixed was less than the market price. The PMSC expert visited the site and consulted with the affected persons and other community people. The expert team found that the amount determined by CDC was based on replacement value and the rate fixation was done two years ago. Since then the price of land had seen escalation. The claim made by the two households was not found logical and recommended to DSC to deposit the amount in District Administration Office. Similarly, deed transfer of 17 affected plots is also completed.

24. In Janakpur SMC, the landfill site which was previously fixed at Fulgama VDC faced some

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disputes, resulting in the cancellation of that site. Since contract f o r t h e c o n s t r u c t i o n

o f storm water drainage and road had been awarded, the location of landfill site was explored

at Bhoyal,JSMC-18.The land is under Guthi Trust ownership and agreement has been signed

between Guthi trust and JSMC. The total area of land is about 8.49 hectare, comprising 32 plots.

The JSMC will acquire the required land. Loss inventory and socio-economic survey of affected

households are yet to be started. The DSC is responsible for the preparing updated Resettlement

Plan for the landfill site.

25. The resettlement plan was not prepared in Dharan SMC during PPTA, though the

resettlement impacts were found in detailed design and prepared resettlement plan. All together

729 sqm private land has been acquired from three households, comprising 5 plots. The

compensation amount has been fixed by the LACFC following due process as a replacement

value. The detail of land acquisition and compensation payment status is given in table 2.

Table 2: Land Acquisition and Compensation Disbursement Status

Municipality/ SMC

Land to be acquired based on

RP

Actual land acquired

compensation paid (NRs)

Remarks

Nepalgunj 7.41 ha 8.47ha 21,250,000.00 100% compensation paid to 4 affected land owners on 23 May 2013; about 1 hector more land was acquired as it was not useful for land owner

Siddharthanagar 5.81 ha 4.46 ha 13,456,562.00 100% compensation paid to one affected land owner for landfill site in June 2012; whereas 85% compensation paid for landfill site access road. 1.35 hector land is not required due to technical cause in landfill site

Dharan 0.07 ha 0.07 ha 5,115,000.00 100% compensation paid to 3 household, comprising 5 plots

9. PROCESS FOR ACQUIRING LAND FOR LANDFILL SITE

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Activity Nepalgunj Siddharthanagar Janakpur Dharan The Local officer(CDO) Issues notice that includes the purpose of acquisition

New Madesh National daily

Gorkhapatra daily Land Acquisition process completed through land agreement with Guthi corporation on 3 March,2017

Gorkhapatra daily

Date of Notice published 10 June, 2011 30 July, 2011

19 March, 2012 30 Jan 2015

GoN assigns Government officer to begin preliminary action related to land

Executive officer

Executive officer Executive officer

Necessary preliminary survey including boundary demarcation of landfill site

Yes Yes Yes

Land revenue office report on area and location of land to be acquired

Yes Yes Yes

Formation of CDC. compensation

6 August, 2012 26 March, 2013 31 March 2015

CDC meeting was held for fixation of the compensation of

7 August, 2012 26 March, 2013 31 March 2015

Table 3 indicates the process followed while acquiring the land for development of landfill site based on

PIU reporting.

Table 3: Process for Acquiring Land for Landfill Site

10. GRIEVANCE REDRESS MECHANISM

11. Grievance Redress Mechanism has been established in all project municipalities/SMC. It has been observed that the GRM is less functional, as regular meetings have not been conducted so far. It is suggested that any grievances received by the Mechanism should be recorded and

addressed as appropriate. ESTABLISHMENT OF SAFEGUARD DESK

26. The Safeguard Desks have been established in Dharan, Janakpur, Siddharthanagar and

Nepalgunj Municipality/SMC. The Safeguard Desk in each municipalities/SMC will organize

monthly meeting to i) assess the safeguards compliance performance as guided by EMP and

RP; ii) identify area of gaps, if any; iii) agree on timely corrective action plan to mitigate the

impacts; and iv) prepare periodic safeguard monitoring reports.

12. PUBLIC CONSULTATION

27. Public consultation was held in Dharan SMC on 23 May 2017 for reservoir construction at

Dharan 14, Bijayapur as different ethnic groups were not in favor of installing reservoir in the PIU

proposed site. Disputes arose as the ethnic groups showed reluctance to let construct reservoir at

the site as they claimed that the Bijaypur's cultural heritage would be destroyed by the construction

of reservoir.

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13. ISSUES

28. RVT construction at Dharan 14 Bijayapur is yet to be started as different ethnic groups did

not allow to start the works, citing that the proposed site has been their religious place for ages.

Their displeasure regarding the construction of reservoir was paramount. They lodged grievances to

Municipality, citing that any construction that made in proposed site would destroy their identity and

cultural heritage. According to the PIU, they had held consultation with the concerned political

parties and local people regarding reservoir construction in Bijayaur during design phase. When the

site was cleared and construction was about to start, the different ethnic groups started to obstruct

the works. lt was noted that PIU had several rounds of discussions in the past and on 26 March

2017 both the parties agreed not to start works at the site without any prior agreement with concerns

groups, search alternative site and conduct technical feasibility as earliest as possible, and protect

cultural heritage of Bijayapur. Accordingly, DSC did technical due diligence of alternative sites bit

couldn't find feasible an alternative site. DSC shared their findings in writing to PlU. The RVT

construction required only 2 kathhas of land out of 7 kathas land approved by the Department of

Forest for the project purpose.

29. The construction of cells in landfill site of Nepalgunj halted due to a stay order of High court

Tulsipur to stop work in 5,892 sqm land parcel (total 5 parcels owned by two owners) in the middle of

the construction site. The construction was started by acquiring 81,271 sqm (12 Bigaha) prior to

award of civil works contract. Due to some technical error, the land acquisition process missed these

five plots and the issue was noted only after mobilization of contractor and excavation works. The

project did consultation meetings with identified plot owners to acquire these plots, but the

negotiations failed due to differences in land price based on replacement cost and demand of the

land owner. Following the failure of negotiations, the owner went to the court and the matter is under

sub judiciary. The work in two parts of cells is being stopped due to stay order. However, with the

simple modification in design, the construction work can move ahead in the acquired land while

putting efforts, in parallel, to find amicable solution with landowners through negotiations.

30. In the absence of Safeguard expert in Janakpur DSC, loss inventory and census survey of

sanitary landfill site land has not started and also preparation of updated resettlement plan is not yet

started.

14. STATUS OF COMPLIANCE WITH LOAN AND GRANT COVENANTS

S.N Covenants Status of

Compliance

Remarks

Sector

Implementation Arrangements

1 Resettlement

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The Beneficiary shall ensure or cause MOUD and MOFALD to

ensure, that all the land and all rights-of-way required for the

Project, each Subproject and all Project facilities are made

available to the Works contractor in accordance with the

schedule agreed under the related Works contract and all land

acquisition and resettlement activities are implemented in

compliance with (a) all applicable laws and regulations of the

Beneficiary relating to land acquisition and involuntary

resettlement; (b) the Involuntary Resettlement Safeguards; (c)

the RF, for Subproject under Part 2 of the Project; and (d) all

measures and requirements set forth in the RP, and any

corrective or preventative actions set forth in the Safeguards

Monitoring Report (Schedule 5, Para 4)

Complied with/

Being complied with.

Without limiting to the application of the involuntary

Resettlement Safeguards, the RF or the RP, the Beneficiary

shall ensure or cause the MOUD to ensure, that no physical or

economic displacement takes place in connection with the

Subprojects until: (Schedule 5, Para 5 a&b)

complied with

(a) compensation and other entitlements have been provided

to affected people in accordance with the RP, the cost of

which shall be borne by the Beneficiary and the relevant

Municipality; and

Complied with.

2 Safeguards Related Provisions in Bidding Documents and

Works Contracts

The Beneficiary shall ensure or cause MOUD to ensure that all

bidding documents and contracts for Works contain provisions

that require contractors to:(Schedule 5, Para 8a to 8e)

(a) comply with the measures relevant to the contractor set

forth in the IEE, the EMP, the RP and any indigenous peoples'

plan (to the extent they concern impacts on affected people

during construction), and any corrective or preventative

Being Complied

With. Provision has

been made in

bidding documents

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S.N Covenants Status of

Compliance

Remarks

actions set forth in a Safeguards Monitoring Report; and contracts for

Works.

(b) make available a budget for all such environmental and

social measures;

Being Complied

With. Budget

provision has been

made in bidding

documents and

contracts for works.

(c) provide the Beneficiary with a written notice of any

unanticipated environmental, resettlement or indigenous

peoples risks or impacts that arise during construction,

implementation or operation of the Project that were not

considered in the IEE, the EMP, the RP or any indigenous

peoples' plan;

Being Complied With

/ Will be followed.

(d) adequately record the condition of roads, agricultural land

and other infrastructure prior to starting to transport

materials and construction; and

Being Complied

With/ Will be

followed.

e) fully reinstate pathways, other local infrastructure, and

agricultural land to at least their pre-project condition upon

the completion of construction.

Being Complied

With/ Will be

followed.

3 Safeguards Monitoring and Reporting

The Beneficiary shall do the following or cause MOUD to do

the following: ( Schedule 5, Para 9a to 9 c)

(a) submit semi-annual Safeguards Monitoring Reports to ADB

and disclose relevant information from such reports to

affected persons promptly upon submission;

Complied with/

Being complied with.

Seven semi-annual

SMR prepared

and

submitted to ADB.

(b) if any unanticipated environmental and/or social risks and

impacts arise during construction, implementation or

operation of the Project that were not considered in the IEE,

the EMP, the RP or any indigenous peoples' plan, promptly

inform ADB of the occurrences of such risks or impacts, with

detailed description of the event and proposed corrective

action plan; and

Complied with.

(c) report any actual or potential breach of compliance with

the measures and requirements set forth in the EMP, the RP

or any indigenous peoples' plan promptly after becoming

aware of the breach.

Will be followed.