kulachi larpfinal.pdf

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ISLAMIC REPUBLIC OF PAKISTAN

Pakistan - Power Distribution Enhancement Program

ADB MFF Tranche 3

Subproject

Up gradation of 66 KV Kulachi to 132 KV Grid Station

Land Acquisition and Resettlement Plan

Peshawar Electric Power Company (PESCO)

GOVERNMENT OF PAKISTAN

OCTOBER 2012


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Pakistan Power Distribution Enhancement Program

LARP _ PESCO _ up-gradation of 66KV Kulachi grid station 2

Table of Contents

TABLE OF CONTENTS............................................................................................................... ........................... 2ABBREVIATIONS................................................................................................................................................. 4DEFINITION OF TERMS........................................................................................................................................ 5

EXECUTIVE SUMMARY................................................................. ................................................................. ...... 61. INTRODUCTION.................................................................................................. ...................................... 8

1.1 BACKGROUND................................................................. ................................................................. ...... 81.2 DESCRIPTION OF THE SUBPROJECT........................................................ ................................................. 8

2. PROJECT COMPENSATION AND REHABILITATION FRAMEWORK ........................................ 9

2.1 POLICY PROVISIONS,ELIGIBILITY AND ENTITLEMENTS......................................................................... 92.1.1 Land Acquisition Act, 1894 (LAA) .............................................Error! Bookmark not defined.2.1.2 Telegraph Act, 1885 ....................................................................Error! Bookmark not defined.2.1.3 Katchi Abadis Act, 1987 ....................................................... .......Error! Bookmark not defined.

2.2 ADBS INVOLUNTARY RESETTLEMENT POLICY......................................................... ........................... 92.3 COMPARISON OF LAND ACQUISITION ACT AND ADBRESETTLEMENT POLICYERROR!BOOKMARK NOT DEFINED.

2.4 REMEDIAL MEASURES TO BRIDGE THE GAP............................................................... ......................... 102.5 LAND CLASSIFICATION......................................................................................................... ............... 112.6 LARAPPROACHES FOR THE SUBPROJECT........................................................ .................................... 112.7 COMPENSATION ELIGIBILITY AND ENTITLEMENTS FOR THE PROJECT.................................................. 112.8 ELIGIBILITY......................................................................................................................................... 112.9 COMPENSATION ENTITLEMENTS...................................................................................................... .... 122.10 ASSESSMENT OF COMPENSATION UNIT VALUES......................................................... ......................... 12

3. ASSESSMENT OF IMPACTS ........................................................................................ ......................... 13

3.1 RESETTLEMENT FIELD SURVEY.................................................................................. ......................... 133.2 MINIMISATION OF IMPACTS................................................................................................................. 133.3 IMPACTS OF THE SUBPROJECT............................................................... ............................................... 13

3.3.1 General Description ............................................................................................................... 13

3.3.2 Impacts of Transmission Line ........................................................ ....................................... 143.3.3 Impacts of Towers ................................................................ .................................................. 143.3.4 Impacts of TL Corridor ........................................................ .................................................. 16

3.4 AFFECTED HOUSEHOLDS...............................................................ERROR!BOOKMARK NOT DEFINED.3.5 SIGNIFICANCE OF IMPACTS.................................................................................................................. 16

4. SOCIO-ECONOMIC PROFILE OF AFFECTED PEOPLE . ERROR! BOOKMARK NOT DEFINED.

4.1 CENSUS OF AFFECTED HOUSEHOLDS.............................................ERROR!BOOKMARK NOT DEFINED.4.1.1 Field Methodology ............................................................... .......Error! Bookmark not defined.4.1.2 General Information on Affected Households ...........................Error! Bookmark not defined.4.1.3 Indigenous People ................................................................ .......Error! Bookmark not defined.

4.2 DATA ON HEADS OF AFFECTED HOUSEHOLDS...............................ERROR!BOOKMARK NOT DEFINED.4.3 DATA ON AFFECTED HOUSEHOLDS................................................ERROR!BOOKMARK NOT DEFINED.

4.3.1 General ............................................................ ............................Error! Bookmark not defined.4.3.2 Housing ........................................................... ............................Error! Bookmark not defined.4.3.3 Livelihood and Incomes ....................................................... .......Error! Bookmark not defined.4.3.4 Poverty ............................................................. ............................Error! Bookmark not defined.4.3.5 Literacy ............................................................ ............................Error! Bookmark not defined.

5. INSTITUTIONAL ARRANGEMENTS .............................................................................................. .... 17

5.1 PAKISTAN ELECTRIC POWER COMPANY (PEPCO) ................................................................ ............... 195.1.1 Distribution Companies (DISCOs) ............................................................ ............................ 195.1.2 Technical Assistance (Consultants) ...................................................................................... 19

5.2 PESHAWAR ELECTRIC SUPPLY COMPANY (PESCO) ............................................................................ 215.2.1 Planning Division .................................................................................................................. 215.2.2 Chief Engineer Development .......................................................... ....................................... 215.2.3 Grid System Construction (GSC) Division ........................................................... ................. 21

5.3 DISTRICT GOVERNMENT....................................................................................................... ............... 225.4 RESPONSIBILITY FOR INTERNAL MONITORING............................................................ ......................... 22


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6. CONSULTATION AND DISCLOSURE .................................. ERROR! BOOKMARK NOT DEFINED.

6.1 CONSULTATION UNDERTAKEN FOR THE LARP ..............................ERROR!BOOKMARK NOT DEFINED.6.2 COMPENSATION OPTIONS DISCUSSED............................................ERROR!BOOKMARK NOT DEFINED.6.3 LARPDISCLOSURE.......................................................................ERROR!BOOKMARK NOT DEFINED.

7. GRIEVANCE REDRESS PROCESS .................................................................. .................................... 22

8. BUDGET FOR LAND AND ASSET ACQUISITION .............................................................. .............. 26

8.1 BASIS FOR COMPENSATION........................................................ .......................................................... 268.2 DETERMINING THE RATES FOR COMPENSATION......................................................... ......................... 268.3 BUDGET FOR LAND AND ASSET ACQUISITION................................................. .................................... 26

9. IMPLEMENTATION SCHEDULE.......................... ................................................................. .............. 27

10. MONITORING AND EVALUATION ....................................................................... ......................... 23

10.1 INTERNAL MONITORING...................................................................................................................... 30

10.3 INDICATORS FOR MONITORING AND EVALUATION................................................................ ............... 3110.4 RESETTLEMENT DATABASE.................................................................................................. ............... 31

10.5 REPORTING REQUIREMENTS............................................................................ .................................... 31


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Abbreviations

ADB Asian Development Bank

ADB TA ADB Technical Assistance (Grant for project preparation)

CED Chief Engineer Development

DHs Displaced Households

DOR District Officer Revenues

DPs Displaced Persons

EMC External Monitoring Consultant

ESIC Environmental and Social Impact Cell (PESCO)

ft foot / feet (3.28 ft = 1 m)

GRC Grievance Redress Committee

GSC Grid Station Construction (Division of PESCO)

IMO Independent monitoring organization

IPDF Indigenous Peoples Development Framework

IPDP Indigenous Peoples Development Plan

IPP Independent Power Producer (Private Sector Power Generation entity)

kanal unit of land measurement: 1 kanal = 20 marlas (= 506 m2)

; (8 kanal = 1 acre)

km kilometer

kV kilo-Volt

LAA Land Acquisition Act, 1894 (amended)

LAC Land Acquisition Collector

LARF Land Acquisition and Resettlement Framework

LARP Land Acquisition and Resettlement Plan

m meter

marla smallest unit of land measurement: 1 marla = 272.25 ft2

(= 25.31 m2

)MRM Management Review Meeting

NGO Non-governmental organization

NWFP North-Western Frontier Province

PD GSC Project Director, Grid System Construction

PEPCO Pakistan Electric Power Company

PESCO Peshawar Electric Supply Company, Peshawar, NWFP.

PIB Public Information Booklet

PIU Project Implementation Unit

PIC Project Implementation Consultant

PMU Project Management Unit

PPTA Project Preparatory Technical Assistance

RFS Resettlement field survey

ROW Right-of-way

Rs. Pakistani rupees (currency): Rs. 95 = US$1.00

TL Transmission Line

TOR Terms of Reference

WAPDA Water and Power Development Authority


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Definition of Terms

Displaced persons (DPs) Displaced persons are those who are physically displaced (relocation,loss of residential land, or loss of shelter) and/or economically displaced(loss of land, assets, access to assets, income sources, or means of

livelihoods) as a result of (i) involuntary acquisition of land, or (ii)involuntary restrictions on land use or on access to legally designatedparks and protected areas

Compensation means payment in cash or kind for an asset to be acquired or affectedby a project at replacement cost at current market value.

Cut-off-date means the date after which people will NOT be considered eligible forcompensation i.e. they are not included in the list of DHs as defined bythe census. Normally, the cut-off date is the date of the detailedmeasurement survey.

Encroachers mean those people who extend their occupation beyond the lands theylegally own; usually not entitled to compensation but at times providedwith assistance if they are vulnerable.

Entitlements mean the range of measures comprising cash or kind compensation,relocation cost, income rehabilitation assistance, transfer assistance,income substitution, and relocation which are due to /businessrestoration which are due to DHs, depending on the type and degreenature of their losses, to restore their social and economic base.

Land acquisition means the process whereby a person is compelled by a public agencyto alienate all or part of the land s/he owns or possesses, to theownership and possession of that agency, for public purposes, in returnfor fair compensation.

Non-titled means those who have no recognizable rights or claims to the land thatthey are occupying and includes people using private or state landwithout permission, permit or grant i.e. those people without legal title toland and/or structures occupied or used by them. ADBs policy explicitly

states that such people cannot be denied compensation.Poor means those falling below the official national poverty line (equivalent to

2,350 calories per day) of Rs 848.79 per person per month (2004).

Replacement cost the calculation of full replacement cost will be based on the followingelements: (i) fair market value; (ii) transaction costs; (iii) interestaccrued, (iv) transitional and restoration costs; and (v) other applicablepayments, if any. Where market conditions are absent or in a formativestage, the borrower/client will consult with the displaced persons andhost populations to obtain adequate information about recent landtransactions, land value by types, land titles, land use, cropping patternsand crop production, availability of land in the project area andregion, and other related information. The borrower/client will alsocollect baseline data on housing, house types, and constructionmaterials. Qualified and experienced experts will undertake thevaluation of acquired assets. In applying this method of valuation,depreciation of structures and assets should not be taken into account.

Sharecropper means the same as tenant cultivator or tenant farmer, and is a personwho cultivates land they do not own for an agreed proportion of the cropor harvest.

Significant impact means 200 people or more will experience major impacts, which aredefined as; (i) being physically displaced from housing, or (ii) losing tenper cent or more of their productive assets (income generating).

Vulnerable means any people who might suffer disproportionately or face the risk ofbeing marginalized from the effects of resettlement and includes; (i)female-headed households with dependents; (ii) disabled householdheads; (iii) poor households (within the meaning given previously); (iv)

landless; (v) elderly households with no means of support; (vi)households without security of tenure; (vii) ethnic minorities; and (viii)marginal farmers (with landholdings of five acres or less, i.e., twohectares or less).


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Executive Summary

1. The Subproject: The up-gradation of 66KV Kulachi grid station andtransmission line subproject has been prepared by the Peshawar Electric SupplyCompany (PESCO) to provide to the Teh: Kulachi and the surrounding villages with a

more reliable source of electric power than what they currently have from the existing66KV Kulachi grid station.

2. The Technical Design of T/Line has not finalized / approved by NTDC. Howeverthis LARP is prepared on the basis of information provided by the surveyor office ofProject Director (GSC) PESCO after the short survey of the project area

3. Resettlement Impacts. The new grid station will be constructed on the existingPESCO land of 66KV Grid Station as under the policy 66KV Grid Station will be eliminatelatter on. The Grid Station will be constructed on the existing PESCO land and thus nobodywill be affected. Hence, neither the ADB SPS nor the is triggered. The transmission line will,however, pass through the lands of only 4 villages. No built-up structure but approximately.100 trees will be affected. Crop over as a result, only 93 farming households (DHs) will be

affected by losing seasonal agricultural crops over 472440 meter square land .All the projectarea is rain fed and crops of the area are wheat and Grams.

4. Compensation and rehabilitation for losses and impacts will be provided inaccordance to the following matrix (see Table 1 below). This entitlements matrix containsprovisions for the actual impacts of this Subproject.

Table 1: Compensation Eligibil ity and Entit lements Matrix for This Subproject

Asset Specification Affected People Compensation Entitlements

PESCO Land forsub-station

Not applicable up-gradation of66KV Kulachi gridstation

N.A

Arable Land

temporarily affectedby construction oftowers or TL.

Access is not restricted

and existing or currentland use will remainunchanged by theconstruction of towers andtransmission line

Titleholder

Landowners(Self-Farmers)93 DHs

No land compensation provided that

land is rehabilitated/restored to formerquality following completion of works.Compensation, in cash, for all damagedcrops and trees as per item below

CropsCrops affected(damaged/lost)

Landowners /Self-Farmers93 DHs

Tower impacts: Cash compensation atmarket rate based on actual impact fora maximum of 3 harvests - for thissubproject 1 harvest is expected to besufficient)

Line corridor stringing: cashcompensation at current market rate of1 harvest.

Trees Trees removedAll DHs 162 DHs

(100 trees)

Cash compensation shall reflect

income replacement

5. Cut-off-Date. Compensation eligibility will be limited by the cut-off date oncompletion of the final census after the line route survey is finalized. The DHs (that settle inthe affected areas and/or make changes in the land use patterns) after this cut-off-date willnot be eligible for compensation. They will, however, be given a three months noticerequesting them to vacate the premises/corridor and dismantle the affected structuresand/or other establishments (if any) prior to project implementation. The LARP will beupdated to include final censuses, socio-economic survey, updated compensation pricesand the budget. The updated LARP WIL be forwarded to ADB and disclosed to the DPs.

6. The LARP will be updated once final route survey is approved. The updated

LARP will include, updated compensation at replacement value in the year the damage iscaused, updated census, socioeconomic survey and budget.


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7. Indigenous People Issues. All of the DHs are Muslim and ethnically Sariki. TheADBs Policy on Indigenous People, as specified in the Indigenous Peoples PlanningFramework (IPPF) prepared for this program is not triggered, and therefore neither an IPPPnor special action is required for this subproject.

8. Significance of Impact.The construction of new transmission line will affect onlycrops and wood trees. It will not cause any restriction on use of, or access to, the land undertowers, and thus, there will be no permanent loss of land. No houses or communitystructures will be affected. As no assets will be lost permanently, and none of the DHs willbe displaced or lose more than 10% of their productive assets, the resettlement impacts willbe non-significant, and hence, this short land acquisition and resettlement plan (LARP) hasbeen prepared.

9. Participatory Land Acquis ition Process.For the final preparation of this LARP,consultation along with will be undertaken, through meetings with men and women of theaffected households and other community members.

11. Grievance Mechanism. There is a process established to deal with any issues

or concerns raised on any aspect of the LARP or compensation process. The verbal orwritten grievances of DHs will be heard, Grievance Redress Committee (GRC).

12. Cost of LARP. During short survey it has been observed that total line ispassing through barren land (rain fed area) however seasonal crops wheat & Gram maybe cultivated in future. The tentative cost has worked out on the basis of data used forrevised LARP of D.I.Khan (Gomal University)

Table 2: Tentative Resettlement Cost of up-gradation of 66KV Kulachi grid station

No. Resettlement Acti vity No. Unit Rs./Unit Total Rs.(Mln)

A Crops: - - -

A.1 Towers: - - -

31 Towers Wheat 220.41 Kanal 3520 0.77

31 Towers Gram 220.41 Kanal 7,000 1.54

A.2 TL Corridor: - - - -

TL Corridor Wheat 330.86 Kanal 3520 1.16

TL Corridor Gram 330.86 Kanal 7,000 2.31

A Subto tal A: - - - 5.78

B. Administration Costs (15% of A) 0.15 lumpsum 5780000 0.86

C. Subtotal (A+B) - - - 6.64

D. Contingency (10% ofC) 0.10 lumpsum 6.64 0.66

Total Amount (Pak. Rupees): - - - 7.3

Total Amount (US Mln Dollars*): - - - 0.077

* US$ 1.00 = Rs. 95

Note:

For preparation of final LARP of GU 106.73 Kanals for 10 Towers(Erection + Stringing).


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1. INTRODUCTION

1.1 Background

1. The Government of Pakistan has requested financing from Asian Development

Bank (ADB) for implementing the Power Distribution Enhancement Investment Program(the Program), to be executed through a Multi-tranche Financial Facility (MFF) dividedinto three tranches (or groups of subprojects). The Ministry of Water and Power is theExecuting Agency (EA) and the Peshawar Electric Supply Company (PESCO) is theImplementing Agency (IA). Each of the programs tranches will constitute a projectwhich, in turn, will be divided into several subprojects involving the construction and/orupgrading of the substations and transmission lines.

2. This Land Acquisition and Resettlement Plan (LARP) has been prepared for theup-gradation of 66KV Kulachi grid station and a 27.69 km long S/C circuit transmissionline, one of the subprojects included in Tranche 3 of the Program, and has beenprepared by PESCO.

PMU/PIU and ESIC issuance of notice to proceed for theimplementation of the subprojects civil works will be contingent to thefull implementation of compensation detailed in this LARP.

3. According to the ADB, SPS, Resettlement impacts are considered significant if >200 people are physically displaced from housing or lose 10% or more of theirproductive assets (income generating) are classified as category A. Projects which willcreate non-significant impacts are classified as category B.. In both cases, a LARP isprepared. The magnitude of impact is minor because the impacts are temporary and anyof the DHs will neither have to be rehabilitated nor will lose any of their incomegenerating assets. Therefore this short LARP has been prepared for the up-gradation of66KV Kulachi grid station and transmission line subproject.

4. The following sections of this LARP detail: (i) the principles and eligibility/entitlement criteria for compensation or rehabilitation of DHs; (ii) the LARP institutionalorganization; (iii) the various LARP implementation mechanisms (information disclosure,participation and consultation, grievance redress and, monitoring and evaluation); and,(iv) time schedule and budget.

1.2 Descript ion of the Subproject

5. The PESCO currently supplies electric power to the Kulachi and its surroundingvillages from the existing 66KV Kulachi grid station which is already overloaded. As aresult, the villagers around have been suffering from poor voltage and frequent

breakdowns in power supply, and they have been complaining for the same for lasttwo/three years. Resettlement impacts will be non-significant, and hence, this short landacquisition and resettlement plan (LARP) has been prepared.

6. The up-gradation of 66KV Kulachi to 132KV grid station will be connected to theexisting 132kv D. I. Khan Tank S/C transmission line, by constructing a new 132kVdouble circuit transmission line. The new 132kV transmission line will be 15.518 km longand involve the construction of a total of 62 towers, The construction of the new 15.518km long new 132kV transmission line will temporarily affect farmlands of farminghouseholds, therefore, this short LARP has been prepared.

7. The up-gradation of 66KV Kulachi grid station 15.518 km long 132kV singlecircuit transmission line will be connected to the existing 132kv D. I. Khan Tank S/C

transmission line by constructing new towers Nos62


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2. COMPENSATION AND REHABILITATION FRAMEWORK

8. This section compares the Pakistani laws and regulations on land acquisition andresettlement with the requirements of the ADB SPS and details the main components ofthe policy framework prepared specifically for the Program to ensure that ADBs Policy

on Involuntary Resettlement is complied with (please, refer to Section 2.4).

2.1 Policy Provisions, Eligibility and Entitlements

9. Regarding matters of land acquisition relative to subprojects requiring theapplication of the right of eminent domain, LAR will be regulated by different bodies oflaw, in particular the Land Acquisition Act (LAA) of 1894 covering land acquisition forstations and towers in urban areas, and the Telegraphic Act of 1885 covering theconstruction of towers in rural areas. The Katchi Abadis Act of 1987 will cover therehabilitation of affected squatters.10. As this specific subproject does not trigger application of any one of the abovementioned laws and only requires compensation for the loss of crops and trees at the

current market rate, we assume any explanation of these laws here will be irrelevant.However for confirmation and reference we are putting summaries of these laws in thefollowing sections and the full text is appended as Appendix-1

2.2 ADBs Safeguard Policy Statement (Involuntary Resettlement Principles)

11. The ADB SPS Involuntary ResettlementPrinciples are based on the followingprinciples:

Objectives: To avoid involuntary resettlement wherever possible; to minimize involuntaryresettlement by exploring project and design alternatives; to enhance, or at least restore,the livelihoods of all displaced persons in real terms relative to pre-project levels; and to

improve the standards of living of the displaced poor and other vulnerable groups.

Scope and Triggers: The involuntary resettlement safeguards covers physicaldisplacement (relocation, loss of residential land, or loss of shelter) and economicdisplacement (loss of land, assets, access to assets, income sources, or means oflivelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions onland use or on access to legally designated parks and protected areas. It covers themwhether such losses and involuntary restrictions are full or partial, permanent or temporary.

Policy Principles:

1. Screen the project early on to identify past, present, and future involuntary

resettlement impacts and risks.Determine the scope of resettlement planning through a survey and/or census of displacedpersons, including a gender analysis, specifically related to resettlement impacts and risks.

2. Carry out meaningful consultations with affected persons, host communities, andconcerned nongovernment organizations. Inform all displaced persons of their entitlementsand resettlement options. Ensure their participation in planning, implementation, andmonitoring and evaluation of resettlement programs. Pay particular attention to the needsof vulnerable groups, especially those below the poverty line, the landless, the elderly,women and children, and Indigenous Peoples, and those without legal title to land, andensure their participation in consultations. Establish a grievance redress mechanism toreceive and facilitate resolution of the affected persons concerns. Support the social and

cultural institutions of displaced persons and their host population. Where involuntaryresettlement impacts and risks are highly complex and sensitive, compensation andresettlement decisions should be preceded by a social preparation phase.


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3. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible orcash compensation at replacement value for land when the loss of land does notundermine livelihoods, (ii) prompt replacement of assets with access to assets of equal orhigher value, (iii) prompt compensation at full replacement cost for assets that cannot be

restored, and (iv) additional revenues and services through benefit sharing schemes wherepossible.

4. Provide physically and economically displaced persons with needed assistance,including the following: (i) if there is relocation, secured tenure to relocation land, betterhousing at resettlement sites with comparable access to employment and productionopportunities, integration of resettled persons economically and socially into their hostcommunities, and extension of project benefits to host communities; (ii) transitional supportand development assistance, such as land development, credit facilities, training, oremployment opportunities; and (iii) civic infrastructure and community services, asrequired.

5. Improve the standards of living of the displaced poor and other vulnerable groups,

including women, to at least national minimum standards. In rural areas provide them withlegal and affordable access to land and resources, and in urban areas provide them withappropriate income sources and legal and affordable access to adequate housing.

6. Develop procedures in a transparent, consistent, and equitable manner if landacquisition is through negotiated settlement to ensure that those people who enter intonegotiated settlements will maintain the same or better income and livelihood status.

7. Ensure that displaced persons without titles to land or any recognizable legal rights toland are eligible for Resettlement assistance and compensation for loss of non land assets.

8. Prepare a resettlement plan elaborating on displaced persons entitlements, the incomeand livelihood restoration strategy, institutional arrangements, monitoring and reporting

framework, budget, and time-bound implementation schedule.9. Disclose a resettlement plan, including documentation of the consultation process in atimely manner, before project appraisal, in an accessible place and a form and language(s)understandable to affected persons and other stakeholders. Disclose the final resettlementplan and its updates to affected persons and other stakeholders.

10. Conceive and execute involuntary resettlement as part of a development project orprogram. Include the full costs of resettlement in the presentation of projects costs andbenefits. For a project with significant involuntary resettlement impacts, considerimplementing the involuntary resettlement component of the project as a stand-aloneoperation.

11. Pay compensation and provide other resettlement entitlements before physical oreconomic displacement. Implement the resettlement plan under close supervisionthroughout project implementation.

12. Monitor and assess resettlement outcomes, their impacts on the standards of living ofdisplaced persons, and whether the objectives of the resettlement plan have beenachieved by taking into account the baseline conditions and the results of resettlementmonitoring. Disclose monitoring reports.

2.3 Remedial Measures to Bridge the Gap

12. In principle, Pakistan Law and ADB Policy adhere not only to the objective of AH

compensation, but also to that of AH rehabilitation. However, Pakistan law is unclear onhow rehabilitation is to be achieved and in practice the provision of rehabilitation is left toad hoc arrangements of local governments and project proponents. To clarify theseissues and reconcile gaps between Pakistani Laws and ADB Policy, the PESCO will


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comply with the prepared for the program, ensuring compensation at replacement costfor all items affected, the rehabilitation of informal settlers, and the provision of subsidiesor allowances for any DHs that may be relocated, suffer business losses, or who may beseverely affected.

2.4 Land Classification

13. In terms of application of the prepared for the program, identifying the type ofland affected is an important step in determining whether land is to be compensated ornot. According to the LARF, the land classification, as well as, land use will be the basisfor identifying the affected lands. They are: (i) urban versus rural lands; and, (ii)residential/commercial versus agricultural lands.

14. Urban or residential/commercial land affected by tower construction both in ruraland urban areas will be considered as acquired permanently and land compensation willbe paid to the affected households. Agricultural land in rural areas, instead, will not beconsidered as permanently affected as long as permanent cultivation and accessremains possible under a tower and therefore will not be acquired and compensated.However, when land under a tower become un-accessible agricultural /rural land will beconsidered as permanently affected and as such acquired and compensated.

15. For the Project Urban and Rural areas will be identified based board of revenuerecords. Also for the Project residential, commercial and agricultural plots will beidentified based on the classification provided by district revenue records or based onthe actual use of the affected land prior to the entitlements cut-off date. In case ofdiscordance between revenue records and actual use the latter will prevail.

2.5 LAR Approaches for the Subproject

16. As specified in the LARF, the construction of Towers and Distribution lines will

have to be carried based on the exercise of the right of Eminent Domain and will triggerthe application of the ADB policy on Involuntary Resettlement. Impacts reparation forthese items under the subproject will be carried out based on the compensation eligibilityand entitlements framework presented in the next sections of this chapter.

2.6 Compensation Eligibility and Entitlements for the Project

17. Land acquisition tasks under the program, and for this PESCO subproject, will beimplemented according to a compensation eligibility and entitlements framework in line withboth Pakistans law/regulation and the ADB Policy.

2.7 Eligibility

18. The DHs entitled to compensation and/or rehabilitation under the program are:

The DHs affected by temporary disruption to their farmlands; and,

The DHs affected by crop damage and loss of wood trees.

19. Compensation eligibility will be limited by a cut-off date to be set for eachsubproject on the stating day of the AH census and impact assessment. DHs who settlein the affected areas the cut-off date will not be eligible for compensation. They will,however be given sufficient advance notice, requested to vacate premises and dismantleaffected structures prior to project implementation. Their dismantled structures will notbe confiscated and they will not pay any fine or sanction. Forced eviction will only be

considered all other efforts are exhausted.

20. They will be allowed to reuse their salvaged material for free Forced eviction willonly be considered all other efforts are exhausted.


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2.8 Compensation Entitlements

21. Based on the impact, entitlement provisions for DHs include replacement valuecompensation for temporary crop loss and trees. These entitlements are detailed below:

Crops: Cash compensation at current market rate for the harvest actually lost

up to 3 harvests being as it may be winter or summer crop (for crops affected bytowers); 1 harvest being as it may be summer or winter crop (for crops affectedby the line stringing). Compensation will be paid both to the landowners andtenants based on their specific sharecropping agreements.

Trees: Cash compensation shall reflect income replacement (see below).

2.9 Assessment of Compensation Unit Values

22. The methodology for assessing unit compensation values of different itemsaffected is as follows:

Agricultural crops will be valued in the year damages caused at net market rates atthe farm gate for the first year crop. In the eventuality that more than one-yearcompensation is due to the DHs the crops after the first will be compensated at grossmarket value.

Wood trees will be valued based on current market rates of the wood.


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3. ASSESSMENT OF IMPACTS

3.1 Resettlement Field Survey

23. The finalized technical design of the subproject is a mandatory pre-requisite for

carrying out the resettlement field surveys. The design included the identification andlayout of the site and technical drawings showing the grid station site and line profile withspotting of bases for towers. Having these pre-requisites, the RFS team undertookfieldwork by actively involving the PESCOs field staff. The impact assessment involvedquantification and costing of affected area and assets through a participatory approach,socioeconomic data on DHs, and consultation with gender-segregated groups of DHsand other community members1.

24. The Reconnaissance Field Survey (RFS) fieldwork was carried out in thesubproject area in August 2012. Upon approval of sub-project, detailed field surveys willbe carried out by a team comprising of one resettlement Specialist, surveyors, andPESCOs technical surveyor and Assistant Directors, Environment and Social

Safeguards. Cut-of date will be fixed by PESCO after consultation with Consultants andthe same will be communicated to the DHs / affected communities during the communityconsultation sessions, and will be further communicated through the Public InformationBrochure (PIB) in Urdu. The affected communities will be clearly informed that nosubsequent changes made in the land use pattern or construction of any structures willbe entertained by PESCO for compensation under this subproject.

3.2 Minimisation of Impacts

25. PESCO usually takes all possible steps to safeguard against and minimize likelyadverse impacts on the local communities in the design and implementation of its powerdistribution enhancement subprojects, involving construction of substations and

transmission lines. Accordingly, the following specific actions were applied to avoid andminimize the likely resettlement impacts of this up-gradation of 66KV Kulachi grid stationand Transmission Line Subproject:

A minimum clearance under the line required is 7 meters which ismaintained for the whole line by providing leg or body extension

26. As a result, no private productive land, buildings or farming enterprises will beaffected permanently. The transmission line will traverse throughout the open lands,including private farmlands where only crops and trees will be affected temporarily bythe construction works.

3.3 Impacts of the Subproject

3.3.1 General Descr ipt ion

27. The up-gradation of 66KV Kulachi grid station and Transmission Line Subprojectinvolves the construction of a new grid station within the premises of PESCO and 15.518km long 132kV S/C circuit transmission line from existing 132kv D. I. Khan-Tank S/Ctransmission line.

28. Compensation and rehabilitation for losses and impacts will be provided inaccordance to the following matrix (see Table 3.1 below). This entitlements matrixcontains provisions for the actual impacts of this Subproject,.


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Table 3.1: Compensation Eligibil ity and Entitlements Matrix for This Subproject

Asset Specification Affected People Compensation Entitlements

PESCO Land forsub-station

Not applicableup-gradation of66KV Kulachi gridstation

N.A

Arable Landtemporarily affectedby construction oftowers or TL.

Access is not restrictedand existing or currentland use will remainunchanged by theconstruction of towers andtransmission line

TitleholderLandowners(Self-Farmers)93 DHs

No land compensation provided that land isrehabilitated/restored to former quality followingcompletion of works. Compensation, in cash, for alldamaged crops and trees as per item below

CropsCrops affected(damaged/lost)

Landowners /Self-Farmers93 DHs

Tower impacts: Cash compensation at market ratebased on actual impact for a maximum of 3harvests - for this subproject 1 harvest is expectedto be sufficient)Line corridor stringing: cash compensation atcurrent market rate of 1 harvest.

Trees Trees removedAll DHs 162 DHs(100 trees)

Cash compensation shall reflect incomereplacement

3.3.2 Impacts of Transmission Line

29. The new 132kV transmission line will be constructed by means of 62 Nos. towerstraversing a total of 15518 m length and 30 m width of productive and unproductive land.No built-up structures will be affected by this Subproject. No land will be acquiredpermanently for the transmission line. However, its construction and stringing works willaffect crops and wood trees within the 30m wide safety corridor. (Further details areprovided inAppendix 1: Working Tables).

Table 3.2: Type of Land Traversed by up-gradation of 66KV Kulachi grid station andTransmission Line

Type of LandTraversed

Total Transmission Line TowersLength (m) Area (m2) %age Number %age

Productive Land 7759 232770 50 31 50

Unproductive Land 7759 232770 50 31 50

Total : 15518 465540 100.00 62 100.00

30. Major crops grown in the area are wheat in the Rabi season (winter-spring) andgram in the Kharif season (summer-autumn). This is the dominant cropping pattern inthe subproject area, with smaller areas of maiz and fodder. Thus, the subprojectsimpact assessment has been made on the basis of wheat and Gram crop losses. Inaddition, there are scattered wood trees, namely Acacia and Ber species, found mostly

on farmland boundaries.Table 3.3: Wood Trees Affected by up-gradation of 66kv to 132kv Kulachi G/S

Affected Tree Species

Number of Affected Wood Trees

Towers TL Corridor Total

Acacia 0 50 50

Ber 0 50 50

Total : 0 100 100

3.3.3 Impacts of Towers

31. The new 132 kV transmission line will require the construction of 62 towers. Noprivate or public land will be acquired permanently, as none of the new towers will beconstructed in an established urban or a developing housing area, and sufficient


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clearance will be provided under the towers for convenient mobility of tractors to allowaffected farmers to continue cultivating their lands without restriction.

32. For the tower installation, crops in an area not only under the tower, but also in asmall perimeter surrounding it as the access, working and storage areas, will be affectedby the construction works. This area is assessed to be 900 m2 (0.09 ha) per 132kV

tower. Thus, the 62 towers will affect temporarily a total of 55800 m2 (55.8 ha) offarmland.

33. The farmlands under and around towers will, however, be affected temporarilycausing loss of crops during the 3-tier process of tower construction: (i) construction offoundations; (ii) erection of towers; and, (iii) stringing of power cables. As a result, DHswill suffer from crop losses for a maximum of three cropping seasons, namely: (i) Rabiseason 2010-11 (Wheat); (ii) Kharif season 2011 (gram) and, (iii) Rabi season 2012-13(Wheat+Gram), for which they will be paid crop compensation at the current marketvalues of affected crops (wheat crops and Gram crop).


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Table 3.4: Areas of Crops Affected by up-gradation of 66kv to 132kv Kulachi G/S

TL Component Length (m) Width (m) Total Area (m2)

Tower (62 Nos.) 30x62=1860 30 55800

TL Corridor 13888 30 416640Total : - - 472440

3.3.4 Impacts of TL Corridor

34. The sections of transmission line in-between the towers (termed as TL Corridor)will cause damage to, or loss of, crops during the stringing of power cables. This lastactivity is usually carried out rapidly, one stretch at a time, and completed in onecropping season, for which one-crop compensation will be paid to all the DHs. Inaddition, the DHs suffering loss of wood trees will be compensated for the loss. Thereare no built-up structures affected by this subproject.

35. Tables 3.4 above also shows that total length of the transmission line traversingthe productive farmlands, excluding the unproductive land under 62 towers, is 15518 mor 15.518 km, thereby affecting crops on an area of 822960 m2 . The stringing of cables,as the final activity, will affect only two crop (wheat + Gram crop: 2013), and accordinglyall the DHs will be paid compensation for one crop. The affected trees will becompensated for once, based on the current market rates.

3.4 Signif icance of Impacts

36. The impact of temporary loss of crops and trees will be minor or non-significantfor all DHs. The DHs own relatively large farms with fairly fertile irrigated lands, and nonewill lose >10% of their total crop. The 30m wide corridor will be used temporarily as a

working corridor for installation of the new towers and stringing of the power lines.


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4. SOCIO-ECONOMIC PROFILE OF AFFECTED PEOPLE

4.1 Census of Affected Households

4.1.1 Field Methodology

37. After obtaining the pre-requisite location maps, field layout and profile drawings,revenue records and in-field assistance of a technical surveyor, intensive fieldwork willbe carried out for preparing LARP. The field methodology will include carrying out ofRFS comprising 100% Census of DHs, and community consultation.

4.1.2 General Information on Affected Households

38. There are 162 DHs with a total population of 1377 affected people (DPs)impacted either by loss of structure or losses of crops or trees. The various impacts onthe AP have already been discussed in Section 3. All of the participants in theReconnaissance Field Survey (RFS) were the head of household. All the DHs are

Muslim and are ethnically Pashtoons.. The language of all APs is Pastoo..

4.1.3 Indigenous People

39. None of the DHs are tribal or minority and all land is held in private ownership(i.e. no tribal or communal ownership). Therefore the ADB, SPS principles onindigenous people does not apply.

4.2 Data on Heads of Affected Households

40. All heads of DHs are male. In terms of marital status 85 % HDHs are married, 13% are unmarried and 2 % is widowed. In terms of age, 74 % household heads are

between 41 and 60 years, 7 % are between 61 and 75 years, while 19 % are young,aged between 30 and 40 years. There are no elderly HDHs (older than 75 years).

4.3 Data on Affected Households

4.3.1 General

41. Households in the subproject area are large, with an average size of 8.5 peopleper household, and include joint or extended families. The smallest household is madeup of six people while the largest household consists of 11 people. Just over half (51%)of all DPs are female.

4.3.2 Housing

42. As already stated that Transmission Line will pass through rural areas. Housingin the villages are mostly of bricks, where as some peoples in the subproject area live inthe dera which are made of mud with roofs of thatch and bamboo.

4.3.3 Livelihood and Incomes

43. As all DHs rely on farming for at least part of their income, the tenure ofagricultural land is an important factor in terms of security and sustainability of livelihood.Among the DHs, all household heads stated they are the registered land owners. Thereare no households that rent or lease agricultural land, no households that claimownership, and no squatters. None of the DPs is a share cropper or a lease holder.Some DPs are engaged in livelihoods, and there are more male than female DPsengaged in the three livelihood sectors. The primary livelihood sector is agriculture,


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accounting for 50% working DPs, followed by 28% in waged employment and 21% insmall business, trade or labour.

44. Major part (38%) of the income of DHs is from agriculture, followed by wagedemployment (36%) and 26% of household income is from small business, trade orlabour.

4.3.4 Poverty

45. Based on the data provided in the Reconnaissance Field Survey there are noDHs that fall on or below the poverty line. Average per capita monthly family income isRs 11,000. None of the DHs are vulnerable.

4.3.5 Literacy

46. The overall literacy rate 50 per cent which is 63% for male and 37% for female. Inthe rural areas only 37% male are literate as against 25% female.


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5. INSTITUTIONAL ARRANGEMENTS

47. The institutional arrangements of planning and management of the PowerDistribution Enhancement Program (or the ADB-funded Power DistributionEnhancement MFF Project) are described as follows (see also Figure 5.1 overleaf):

5.1 Pakistan Electr ic Power Company (PEPCO)

48. The Project Management Unit (PMU), PEPCO is the focal organization based inLahore responsible for the Power Distribution Enhancement Program, for keeping liaisonwith the Government of Pakistan and Asian Development Bank (ADB) on behalf of allthe DISCOs, and taking care of disbursement of funds (including ADB loan) andtechnical assistance through Consultants to, and coordination of the Program planningand management activities of the DISCOs.

5.1.1 Distribution Companies (DISCOs)

49. The DISCOs included in the ADB-funded MFF Project (the Program) are:

(1) PESCO: Peshawar Electric Supply Company, Peshawar, NWFP;

(2) IESCO: Islamabad Electric Supply Company, Islamabad;

(3) GEPCO: Gujranwala Electric Power Company, Gujranwala, Punjab;

(4) LESCO: Lahore Electric Supply Company, Lahore, Punjab;

(5) FESCO: Faisalabad Electric Supply Company, Faisalabad, Punjab;

(6) MEPCO: Multan Electric Power Company, Multan, Punjab;

(7) QESCO: Quetta Electric Supply Company, Quetta, Baluchistan; and,

(8) HESCO: Hyderabad Electric Supply Company, Hyderabad, Sindh.

5.1.2 Technical Assistance (Consultants)

50. PMU, PEPCO provides technical assistance to all the eight DISCOs through theproject implementation and supervision consultant.


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Figure 5.1: Organization for LARP Planning, Implementation and Monitoring

PEPCOProject Management Unit (PMU)

(Project Coordination)

Chief ExecutivePESCO

ProjectImplementationConsultant (PIC)

Chief Engineer Development(PESCO Subprojects)

PICConsultants

Monitoring y/Consultant

Project Director (PD, GSC)(Grid System Construction)

Project

ImplementationUnit (PIU)

(Engineers &Patwaris)

N.W.F.P. Boardof Revenue

Deputy Manager, ESIC(Environmental and Social

Impact Cell)

PESCO LACDistrict LAC

Assistant Manager(Social/Resettlement)

AssistantManager

(Environment)

Staff / Patwaris Field Patwaris


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5.2 Peshawar Electr ic Supply Company (PESCO)

51. PESCO as the implementing agency (IA) bears the overall responsibility for thepreparation, implementation and financing of all tasks set out in this LARP, as well asinter-agency coordination required for the implementation of the Subprojects. As such, it

takes care of the preparation/updating and implementation of the LARPs and DDRs, andinternal monitoring and evaluation activities. Institutionally, PESCO has three functionaldivisions, namely, the Planning, Projects and Grid System Construction divisions.

5.2.1 Planning Division

52. The Planning Division is responsible for preparation of PC-1s, for preparation ofload forecasts and feeder analysis. The division is responsible for preparation of theEnergy Loss Reduction (ELR) work orders. Formerly subproject preparation and keepingliaison with the Government of Pakistan and Asian Development Bank (ADB), as thedonor of this MFF Project had also been the responsibility of this division. But lately theactivity has been shifted to the Office of Chief Engineer Development.

5.2.2 Chief Engineer Development

53. The former Projects Division has now been named as the Office of ChiefEngineer Development (CED), is responsible for the overall planning, management andcoordination of the approved Subprojects. The CED is currently being assisted by thePPTA Consultants (including the Resettlement Experts responsible for LARP/DDRpreparation), in preparing the identified Subprojects in line with the ADB Policies, andobtaining approval from the donor ADB. Its major functions include keeping regularliaison with ADB and relevant departments of the federal, provincial and districtgovernments, preparation, updating and implementation of the LARPs and the relatedmonitoring and evaluation activities.

54. PESCO has established an Environmental and Social Impacts Cell (ESIC) underthe Office of CED, to take care of safeguards related activities. It will be headed by aDeputy Manager, and assisted by two Assistant Managers, Environment and Social,respectively. The Assistant Manager Social will be responsible for preparation/updating,implementation and internal monitoring of the Subproject LARPs, with assistance fromPESCO LAC and PIC Resettlement Expert.

55. The CED contains a specially created cell to take care of the safeguards relatedactivities, namely, the Environmental and Social Impacts Cell (ESIC), headed by aDeputy Manager, and assisted by two Assistant Managers, Environment and Social,respectively. The Assistant Manager Social is responsible for the preparation/updating,implementation and internal monitoring of the Subproject LARPs, with assistance fromPESCO LAC and PIC Resettlement Expert.

56. The Scope of Work to be handled by the ESIC far exceeds the physical andprofessional ability and capabilities of the incumbents. To support the ESIC, to carry outits responsibilities, a Monitoring Consultant is being hired. In addition, a ProjectImplementation Consultant (IC) will also be hired who will also have social andenvironmental experts to assist PESCO in revising and updating the LARP as and whenrequired, and then in implementation of the LARP. The Consultants will be provided fulllogistic support (including office space and field transport) by PESCO.

5.2.3 Grid System Construct ion (GSC) Division

57. The Grid System Construction (GSC) Division is responsible for implementingthe approved Subprojects, including construction/improvement of grid stations andtransmission lines. This office is headed by the Project Director (GSC), and it willestablish Project Implementation Units (PIU), comprising Engineers and Patwaris, at the


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respective towns of each Subproject. The PIU for this Subproject will be established atVillage Kulachi, district D.I.Khan. In addition, PD GSC has an in-house Land AcquisitionCollector (LAC) to take care of the land acquisition and resettlement activities.

58. The PESCO LAC, along with his field Patwaris, in addition to implementation ofthe LARP activities, will provide in-field assistance to the Resettlement Experts of ESIC

and PIC in updating, revision and internal monitoring of the LARPs. He normally worksas an independent entity, but in case of local needs like price updating, grievanceredress, etc., may involve the local Union Councils and other leaders at the local levels,and/or the District LACs and KPK. Board of Revenue for addressing broader levelmatters and resolving permanent Land Acquisition issues (not applicable to thisSubproject). He will be provided technical assistance by the Resettlement Expertsincluded in both ESIC and PIC teams.

5.3 Distr ict Government

59. The district government have jurisdiction for land administration, valuation andacquisition. At the provincial level these functions rest on the KPK. Board of Revenuewhile at the district level they rest on the District Land Acquisition Collector (DistrictLAC). Within LAC office the Patwari (land records clerk), carry out specific roles such astitles identification and verification of ownerships and prices of lands.

5.4 Responsibi lity for Internal Monitoring

60. Internal monitoring will be carried out by ESIC with support from the projectimplementing and supervision consultant. Quarterly monitoring reports will be submittedto ADB. All monitoring reports will be disclosed on DISCOs website, translated anddisclosed to the DPs. Corrective Action Plans (CAPs) will be prepared as relevant anddisclosed


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6. CONSULTATION AND DISCLOSURE

6.1 Consultation Undertaken for the LARP

61. The Reconnaissance Consultative process undertaken for the preparation of theLARP has included not only DHs, but also the local communities of the area. PublicConsultation was conducted on October 18-19, 2012. The list of participants with thelocation is attached at Appendix-2. Special attention was paid to identify the needs ofvulnerable groups (such as the poor, women, and elderly), to ensure that their viewshave been considered in the formulation of the LARP.

62. Consultation with stakeholders at the different stages of the subproject isrequired by ADBs SPS and as provided for in the LARF. To start with, consultations withthe DHs were conducted as part of inventory taking of affected lands and other assets.The communities and especially the As responses to the proposed subproject werefound to be positive.

63. Along with the participatory RFS, semi-structured discussions aiming atcommunity awareness and consultations regarding the projects likely impacts were alsoheld with the small groups of men and women along the proposed grid station andtransmission line.

64. During detailed consultation sessions, the cut-off-date for compensation eligibilitywill be communicated to all participants. They will be clearly told that no subsequentchanges in the land use would be entertained by PESCO.

65. The affected communities concerns and suggestions have been incorporatedinto subproject design and will be implemented as an integral part of resettlementactivities. The major concerns raised during the consultation included the adequacy andtimeliness of compensation payments, as well as safety measures to be taken during theconstruction of the towers and stringing of the transmission lines. In response, PESCOwill make sure that the crop compensation amounts are assessed justly and paid to theDHs, at least fifteen days prior to temporary use of land before starting the civil works.

66. The local communitys response (awareness, perceptions and preferences) tothe transmission line subproject and resettlement related matters are summarized asfollows:

This subproject is necessary under the current local conditions; Compensation should be fair and timely; Local skilled and unskilled labor should be used wherever possible; Damaged lands should be rehabilitated after the construction work is completed;

Local norms should be honored; and Construction work should be completed in time.

6.2 Compensation Options Discussed

67. In addition to the focus group discussions and consultative meetings describedabove, the survey included a questionnaire with several questions regarding DPspreferences for compensation and rehabilitation options. This information has been andwill be used to assist in determining the support measures required by DHs.

68. The first compensation priority of all DHs is for cash. When asked why theypreferred cash compensation, almost all the DHs stated the reason was to assist with

daily living expenses as they will lose their livelihood in the shape of crops.69. In summary, the compensation and resettlement options discussed and agreedupon during the consultation meetings included:


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Relocation - not applicable; Assistance - not applicable;

6.3 LARP Disclosure

70. After Approval from ADB, the LARP same will be placed at ADB, PEPCO &PESCO Web Site. Accordingly an Urdu version will be made available by PMU, PEPCOto the PESCO headquarters and in the project site..

71. In line with ADBs public communications policy, this LARP in English will also beposted on the ADB and PESCO websites, while its translation in Urdu will be disclosedto the DHs at the PESCOs officeand posted on the ADB and PESCO websites.

72 In addition, a Public Information Brochure IPIB) in Urdu, summarizingcompensation provisions will be sent to all DHs. by PESCO. Draft of this brochure isplaced at Appendix 3.


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9. GRIEVANCE REDRESS PROCESS

73. PESCO normally takes care to prevent grievances rather than going through aredress process. This can be obtained through careful LAR design and implementation,

by ensuring full participation and consultation with DHs, and by establishing extensivecommunication and coordination between the community and PESCO. Nevertheless, agrievance mechanism will be made available to allow an AH appealing against anydisagreeable decision, practice or activity arising from compensation for the affectedland or other assets. DHs will be fully informed of their rights and of the procedures foraddressing complaints verbally during consultation meetings and through PIB in Urdu.

74. Complaint registers will be kept at both the existing grid station at Kulachi, to bemaintained by the respective grid station in-charge. PESCO will inform the DHs of theavailability of this arrangement through PIB in Urdu. The complaints received will beprocessed and resolved by the PESCOs Social Development Officer and LAC byinvolving the local leadership and Union Councils, and/or the respective District LAC.

75. Firstly, attempts will be made to redress the grievances through a village levelgrievance redress committee (GRC) comprised of PESCOs ESIC and LAC or Parwari,and the village notable elders, like Wadera, Numbardarand the concerned Councilor ofthe Union Council. But if the grievances cannot be redressed satisfactorily at the villagelevel, a grievance redressal mechanism will be established at the District level,comprising of District Coordination Officer (Chairman), Chief Engineer, District LAC andPESCOs ESIC and LAC. As a last resort, the aggrieved AH may seek justice throughthe Court.

76. The finances will move directly from PESCO to DHs, as compensation for theloss of crops and trees. The complaint and grievances will be addressed by PESCOlocally by involving local leadership and Union Council, and the involvement of the

district government may be needed only for unresolved grievances, as described inTable 7.1 below.

Table 5.1: Grievance Resolution Process

Crop & Tree Compensation Issues Other Compensation or Project Issues

1. First, complaints resolution will be attempted atvillage level through the involvement of the ESIC,district government, and/or informal mediators.

1. First, complaints resolution will be attempted atvillage level through the involvement of the ESIC,district government, and/or informal mediators.

2. If still unsettled, a grievance can then be lodged tothe LAC who has 30 days to decide on the case.

2. If still unsettled, a grievance can be lodged to thePIU/ESIC, which will have 30 days to respond.

3. If no solution was reached a grievance can be

lodged with support of the ESIC to the PESCO. TheDH must lodge the complaint within 1 month of lodgingthe original complaint with the LAC and must producedocuments supporting his/her claim. The PESCO willprovide the decision within 21 days of registering thecomplaint. The PESCO decision must be incompliance with this LARF provisions.

3. If no solution was reached a grievance can be

lodged with support of the ESIC to the PESCO. TheDH must lodge the complaint within 1 month of lodgingthe original complaint with the LAC and must producedocuments supporting his/her claim. The PESCO willprovide the decision within 21 days of registering thecomplaint. The PESCO decision must be incompliance with this LARF provisions.

4. Should the grievance redress system fail to satisfythe DH, they can further submit their case to theappropriate court of law as per the process set out inSections 18 to 22 of the LAA (1894).

4. Should the grievance redress system fail to satisfythe DH, they can further submit their case to theappropriate court of law as per the process set out inSections 18 to 22 of the LAA (1894).


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8. BUDGET FOR LAND AND ASSET ACQUISITION

8.1 Basis for Compensation

77. Compensation for projects requiring land acquisition can often differ between the

borrower and ADB (and other providers of official development assistance). To complywith ADBs Policy on Involuntary Resettlement, rates used to compensate for lost landand assets must be at replacement values, to at least restoring peoples livelihoodsand ensuring that people affected by a project are not left worse off.

8.2 Determining the Rates for Compensation

78. Based on the foregoing requirements and the LARF provisions, the methodologyfor assessing unit compensation values of the different items is described as follows:

Basic annual crop compensation was valued at net farm-gate marketrates. If additional crops compensation is due it will be calculated at

market value minus inputs. As noted earlier, compensation for cropsaffected by tower bases and perimeters is three-crop and for stringing ofthe lines is for one-crop; and

Wood trees were valued based on type, size, and age. DHs are entitled tokeep the wood (as salvaged material) without any deductions from theamount of compensation.

79. The valuation survey registered current crop and tree sales at local markets andcommunities. The estimated budget is presented in Table 8.1. It was based oncommunity consultations, market surveys and relevant local government agencies,namely the Agriculture, Forestry and Revenue departments. The results of the surveyare provided in the tables below. The prices of affected assets given herein will be

updated and this LARP revised accordingly by PESCO at least one month prior toawarding the Contract for the Subproject implementation works.

8.3 Compensation for Affected Assets by Construction of TL

80. The valuation survey registered recent current crop and tree sales at marketsand was based on AH and community consultation (including relevant local governmentagencies). The results of the survey are provided in the tables below.

81. The TL alignment passes through irrigated agricultural area with wheat andmaize crop rotation. The affected farmers grow wheat in rabi season (winter-spring), andmaize in the kharif season (summer-autumn). The market prices of both crops were

collected from the affected community, four villages (Abdullah, Hatala, Kulachi & BadarGarah), at Tank District market.

8.4 Budget for Land and Asset Acquisition

82. This LARP includes the cost of land for the grid station, compensation for theloss of other assets (crops and trees) by the construction of the transmission line,rehabilitation of affected lands, and other associated activities. The cost estimate hasbeen based on the rates derived through consultation and survey as described in thepreceding section. The rates for compensation and cash entitlements for rehabilitationpayable to DHs will be adjusted annually, based on the actual annual inflation rate.LAC/PESCO will determine the annual inflation rates and adjust all cash entitlements.

83. The administrative charges have been estimated as 15% of the total ofcompensation for the affected crops and trees. These charges are to cover the costs ofimplementing the plan (producing and distributing the PIB, holding individual and group


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consultations and public meetings as required, verifying the Census Survey, revising theLARP if required (to reflect any minor changes), organizing and arranging for thecompensation payments), and internal monitoring of the plan and its implementation,including logistic support to the field staff working on LARP activities.

84. A contingency of 10% of the subtotal of the compensation and administrative

charges has been included in the cost estimate. This will be an additional source offunding for any increased compensation (if any) as well as providing logistic support tofield staff involved in LARP implementation.

85. Funds for compensation and implementation of the LARP will be from theGovernment (counterpart funds) via PESCO, budgetary requirements for economicrestoration, as part of resettlement budget will also come from the counterpart funds andshall be identified as allowances. The EMA will be financed as a project loan cost as acomponent of the project support fund.

Table 8.1: Tentative Resettlement Cost of up-gradation of 66KV Kulachi grid station

No. Resettlement Acti vity No. Unit Rs./Unit Total Rs.(Mln)

A Crops: - - -A.1 Towers: - - -

31 Towers Wheat 220.41 Kanal 3520 0.77

31 Towers Gram 220.41 Kanal 7,000 1.54

A.2 TL Corridor: - - - -

TL Corridor Wheat 330.86 Kanal 3520 1.16

TL Corridor Gram 330.86 Kanal 7,000 2.31

A Subto tal A: - - - 5.78

B. Administration Costs (15% of A) 0.15 lumpsum 5780000 0.86

C. Subtotal (A+B) - - - 6.64

D. Contingency (10% ofC) 0.10 lumpsum 6.64 0.66

Total Amount (Pak. Rupees): - - - 7.3

Total Amount (US Mln Dollars*): - - - 0.077

* US$ 1.00 = Rs. 95

9. IMPLEMENTATION SCHEDULE

86. The overall program will be implemented over a ten year period, with the secondtranche of subprojects scheduled to commence upon loan approval. Following thepurchase of equipment, mobilization of the supervision consultant and LARPimplementation, the subprojects construction and installation works will take some 10 to12 month period in the year 2015.

87. The Project Director GSC, PESCO will establish a PIU office in Tehsil Kulachi inthe mid-2014. The PIU will be headed by Executive Engineer (XEN) and staffed by in-house Engineers and LAC Patwaris. The PIU which will take care of all the subprojectrelated activities, including receipt and storage of transformers and other equipment,LARP implementation and supervision of contractors works. The implementation ofresettlement and related activities will take place after the Project ImplementationConsultant has mobilized who will assist PESCO in implementing the Subproject.

88. The civil works contractors will not be issued a notice of possession of site forany section of construction works unless the PESCO has (i) satisfactorily completed, in

accordance with the approved LARP, and made all compensation payments, and (ii)ensured that the rehabilitation assistance is in place and the area required for civil worksis free of all encumbrances. The LARP implementation schedule, shown in Table 9.1overleaf, envisages the following sequence of activities:


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(a) The technical design of transmission line has not been finalized/approved byNTDC.

(b) LARP updation/revision will be completed by PESCO ESIC/LAC from January toJune 2013. The updated LARP will include revised compensation assessmentbased on the year damages are caused, updated census, budget and

socioeconomic survey. The LARP will be submitted to ADB for clearance.followed by LARP disclosure, grievance redress and payment of compensationsfrom July to December 2013, and LARP monitoring internal report completed byend-2013; and,

89. Commencement of civil works (construction/stringing) to start in January 2014and completed by March 2015.


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Table 7.1: LARP Implementation Schedule for upgradation of 66kv Kulachi 132kVGrid Station and Transmission Line Subproject (PESCO)

LARP Activit y/TaskResponsibil ity Year 2012 Year 2013 Year 2014 2015

Primary Secondary I II III IV I II III IV I II III IV I II

Preparation

Technical Survey and Designof GS & TL

PESCO PESCO

PESCO LandPESCO LAC PESCO

Land mutation, possession anddemarcation

PESCO LAC Dist LAC

Resettlement Surveys andLARP preparation

PESCO SMEC consultant

Draft Final LARP (after ADBcomments)

SMEC Consultant PMU, PEPCO

Contract Awards to and

Mobilization of Consultants:PIC and EMC

Govt/ADB/PEPCO Consultants: PIC& EMC

Imple

mentation

Update/Adjust compensationrates for inflation and reviseLARP accordingly (ifnecessary)

PESCO LAC &ESIC

PIC(Resettlement)

Award of Contract for civilsworks / installation

PESCO ADB/PEPCO

Submit revised LARP toEPA/ADB. LARP approval priorto Award of Contract for works

PESCO ESIC PMU, PEPCO

LARP disclosure (Englishversion on ADB and PESCOWebsites; Distribution of UrduBrochure

ADB/PEPCO PESCO/ESIC

Grievance Redress Process PESCO LAC GRC; Distt LAC

Delivery of compensation.Final payments to be madeprior to the start of Civil Works

PESCO LAC ESIC/PIC

Construc

tion

Internal monitoring of LARPimplementation

ESIC PIC, PMU

Contractor mobilized, civilworks commenced

Contractor PESCO PIU

Rehabilitation offarmlands/watercourses

Contractor ESIC/PIC

LARP monitoring; post-evaluation report

EMC ADB/PEPCO


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Final LARP _ PESCO _ up-gradation of 66KV Kulachi grid station 30

10. MONITORING AND EVALUATION

90. Monitoring and Evaluation (M&E) are critical activities in involuntary resettlementcaused by various infrastructure development projects, like this Power DistributionEnhancement project. Monitoring involves periodic checking to ascertain whether

activities are progressing as per schedule while evaluation is essentially a summing up,at the end of the project, assessment of actual achievement in comparison to thoseaimed at during the implementation. The LARP implementation will be monitoredinternally.

91. The PESCO through ESIC will be responsible for internal monitoring. TheResettlement Specialist will provide necessary technical assistance in implementing andmonitoring the resettlement activities.

10.1 Internal Monitor ing

92. This LARP includes indicators and benchmarks for achievement of the objectivesunder the resettlement program, which can be categorized as follows:

Process indicators, which include project inputs, expenditures, staffdeployment;

Output indicators are results in terms of numbers of Affected personscompensated for their Affected assets (land, crops and/or trees), and,

Impact indicators related to the long-term effect of the project on peopleslives in the project-Affected area.

93. The first two types of indicators, related to process and immediate outputs andresults, will be monitored internally by ESIC. This information will be collected from theproject site and assimilated in the form of quarterly progress reports to assess the

progress and results of LARP implementation, and adjust the work program, wherenecessary, in case of any delays or problems.

94. Specific activities under LARP implementation to be monitored are the following:

Information campaign and consultation with DHs on a continued basis;

Status of land acquisition/purchase and payments of crop and treecompensations;

Status of restoration of damaged community infrastructure (waterpipelines, irrigation channels / watercourses, drains, roads, streets, etc.)

Grievances redress activities

95. The ESIC will be responsible for monitoring the day-to-day resettlement activitiesof the subproject. The socio-economic census and land acquisition data will provide thenecessary benchmark for field level monitoring, to be carried out through:

Review of IOL/Census information for all DHs;

Consultation and informal interviews with DHs;

In-depth case studies;

Informal sample survey of DHs;

Key informant interviews; and

Community public meetings.


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96. A performance data sheet will be developed by ESIC to monitor the project at thefield level. Quarterly reports will be received from the field offices and LAC/GSC will beresponsible for overall project level monitoring.

10.2 Indicators for Monitor ing and Evaluation

97. The following will be considered as the basis for indicators in monitoring andevaluation of the subprojects LARP:

Socio-economic conditions of the DHs in the post-resettlement period;

Communications and reactions from DHs on entitlements, compensation,options, alternative developments and relocation timetables etc.;

Public Consultation

Grievance procedures;

Disbursement of compensation; and

Level of satisfaction of DHs in the post resettlement period.

10.3 Resettlement Database

98. All information concerning resettlement issues related to land acquisition, socio-economic information of the acquired land; inventory of crop and tree losses byindividual DHs, compensation and entitlements and payments will be collected by ESICand the Consultants through their concerned field offices and computerized by the ESIC,PESCO. This database will form the basis of information for implementation, monitoringand reporting purposes and facilitate efficient resettlement management.

10.4 Report ing Requirements

99. The ESIC responsible for supervision and implementation of LARP will preparequarterly progress reports on resettlement activities and submit the same to the ADB forreview and approval. The internal quarterly monitoring reports will also highlight thebottlenecks and recommend ways and means to improve such problematic situations.The monitoring reports will be disclosed on PESCOs website, translated and disclosedto the DPs. If relevant, corrective action plans (CAPs) will be prepared and disclosed.


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Appendix 1

Land Acquisition Act , 1894

With the exception of impacts caused by poles and towers for public utilities land acquisition in

Pakistan is regulated by the Land Acquisition Act, 1894 (LAA) with its successive amendmentsis the main law regulating land acquisition for public purpose. The LAA has been variouslyinterpreted by local governments, and some province has augmented the LAA by issuingprovincial legislations. The LAA and its Implementation Rules require that following an impactsassessment/valuation effort, land and crops are compensated in cash at market rate to titledlandowners and registered land tenants/users, respectively. The LAA mandates that landvaluation is to be based on the latest three years average registered land sale rates, though, inseveral recent cases the median rate over the past year, or even the current rates, have beenapplied. Due to widespread land under-valuation by the Revenue Department, current marketrates are now frequently used with an added 15% Compulsory Acquisition Surcharge asprovided in the LAA.

Based on the LAA, only legal owners and tenants registered with the Land RevenueDepartment or possessing formal lease agreements, are eligible for compensation or livelihoodsupport. The rights of the non-titled are however addressed under the 1986 Punjab JinnahAbadis for Non-proprietors in Rural Areas Act which recognize to squatters the right to receiverehabilitation in form of a replacement plot. It is to be noted that this right has been sometimesextended in practice to include some form of rehabilitation in cash or in forms different fromland. Projects such as Chotiari Dam, Ghazi Barotha Hydropower, and National HighwaysImprovement, have awarded compensation and assistance to unregistered tenants and otherforms of AH (sharecroppers/squatters).

It is also noted that the LAA does not automatically mandate for specificrehabilitation/assistance provisions benefiting the poor, vulnerable groups, or severely affected

DPs, nor it automatically provides for rehabilitation of income/livelihood losses or resettlementcosts. This however is often undertaken in many projects in form of ad hoc arrangements basedon negotiations between a specific EA and the DPs.

As noted above, there are exceptions to the rule and the law is broadly interpreted at provinciallevel depending on operational requirements, local needs, and socio-economic circumstances.Recourse is often taken to ad hoc arrangements, agreements and understandings forresettlement in difficult situations. The above is also influenced by the fact that an amendmentof the LAA has been considered necessary by the Ministry of Environment. Accordingly, aNational Resettlement Policy and a Resettlement Ordinance have been drafted to broaden LAAprovisions and current practices so as to widen the scope of eligibility, but both thesedocuments are still awaiting Government approval for implementation.

A brief description of salient features of different sections of LAA are given in Error!Reference source not found.2. The right to acquire land for public purposes is establishedwhen Section 4 of LAA is triggered. The LAA specifies a systematic approach for acquisitionand compensation of land and other properties for development projects. It stipulates varioussections pertaining to notifications, surveys, acquisition, compensation and apportionmentawards, along with disputes resolution, penalties and exemptions. Surveys for landacquisition are to be disclosed to the displaced persons.


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SALIENT FEATURES OF PAKISTANS LAND ACQUISITION ACT, 1894 (AMENDED)

KeySection

Salient Features of Pakistans LAA

Section4

Publication of preliminary notification and power for conducting survey andinvestigation.

Section5

Formal notification of land needed for a public purpose.

Section5A

Providing right of complaints to APs for review/enquiry of quantities andcompensations

Section6

The Government makes a more formal declaration of intent to acquire land.

Section

7

Land Commissioner shall direct Land Acquisition Collector (LAC) to take order

for the acquisition of land.

Section8

The LAC to direct the land required to be physically marked out, measured andplanned.

Section9

The LAC gives notice to all affected/displaced persons (APs/DPs) that theGovernment intends to take possession of the land and if they have any claimsfor compensation then those claims are to be made to him at an appointed time.

Section10

Delegates power to the LAC to record statements of APs/DPs in the area of landto be acquired or any part thereof as co-proprietor, sub-proprietor, mortgagee,and tenant or otherwise.

Section11

Enables the LAC to make enquiries into the measurements, value and claim andthen to issue the final award". The award includes the land's marked area andthe valuation of compensation.

Section16

When the LAC has made an award under Section 11, he will then takepossession and the land shall thereupon vest absolutely in the Government, freefrom all encumbrances.

Section17

Urgency acquisition whereby land possession is taken prior to payment ofcompensation

Section

18

In case of dissatisfaction with the award, DPs may request the LAC to refer the

case onward to the court for a decision. This does not affect the Governmenttaking possession of the land.

Section23

The award of compensation for the owners for acquired land is determined at itsmarket value plus 15% in view of the compulsory nature of the acquisition forpublic purposes.

Sec

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