strategic environmental assessment · designed, this strategic assessment provides a general...

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Kiribati Adaptation Programme 11World Bank Grant No. GEF PPG TF053994

KIRIBATI ADAPTATION PROGRAMMEPILOT IMPLEMENTATION PHASE 11 (KAP 11)

Strategic Environmental Assessment(SEA) Report

Prepared for:Kiribati Adaptation ProgrammeMinistry of Finance and Economic PlanningBairikiKiribati

For Submittal to:Environment and Conservation DivisionMinistry of Environment Lands and AgriculturalDevelopmentP.O. Box 234Bikenibeu, Tarawa, Kiribati

Tarawa, 1 April 2005

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Strategic Environmental Assessment of KAP 11

EXECUTIVE SUMMARY

1. Introduction

This report presents the results of a strategic environmental assessment (SEA) of

Phase II of the Kiribati Adaptation Programme. The SEA Report is designed to

achieve three aims.

First, the report will discuss the environmental issues that are likely to arise under the

Kiribati Adaptation Programme Phase II, and particularly under Component 1. Priority

National AdaDtation Investment and Component 2. Pilot Island AdaDtation, and make

recommendations concerning how best to undertake environmental assessment of

these activities to mitigate any possible negative consequences.

The report will also establish the basis for possible extension of environmental

assessment methodology to other aspects of adaptation to climate change in Kiribati,

and particularly to those activities proposed in the Climate Change Adaptation (CCA)

Strategies as part of the Kiribati Government Policy on Adaptation to Climate

Change.

Finally, as the specific activities to be undertaken under KAP II have yet to be

designed, this strategic assessment provides a general methodology for

environmental screening of policies and plans, the preparation of environmental

impact assessments for various kinds of potential activities and the monitoring of the

implementation of the recommendations of those ElAs.

2. The Purpose of Strategic Environmental Assessment

SEA is a form of Environmental Impact Assessment (EIA) but has a different

emphasis than project EIA. SEA, like project EIA, is also concerned with identifying

adverse environmental changes but it is used to evaluate policies, programmes, and

plans rather than specific project proposals. The particular benefit of SEA is that it

allows a coherent overview of a set of proposed activities that may possibly have

effects on the same geographical area and/or the same environmental sectors. In

essence, it provides information concerning the kinds of issues likely to arise under

activities in different sectors, and thereby provides guidance for those engaged in the

screening for environmental issues when specific projects or subprojects are

proposed. It also allows assessment of the effectiveness of currently established

institutional responsibilities, mechanisms and procedures for conducting

environmental screening and assessment.

SEA is particularly useful when the proposal has been evolving over a number of

years as it allows an appraisal of the overall proposal, away from the detail of specific

project proposals. Therefore, SEA is an opportunity to step back and review the

evolving policy, programme, or strategic plans and ensure that the basis of the

proposal is environmentally sound. The SEA process, in common with all EIA

activities, is a fundamental tool for the promotion of sustainable development, as it

emphasises thinking through the environmental consequences of proposed

developments before committing to the proposal. In this way, environmental costs

and trade-offs can be brought out explicitly in the decision making process of the

developer, and steps can be taken to enhance long term sustainability of the final

development.

SEA is very appropriate to the planned activities of the Kiribati Adaptation Project

specifically and the Climate Change Adaptation (CCA) Strategy generally for Kiribati.

The combination of all the proposed activities constitutes a major potential change in

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Environmental Planning & Management Specialists


coastal infrastructure and management thinking, not only in South Tarawa but inKiribati as a whole.

3. Methodology

The following approached was used in the SEA analysis.The background to the Climate Change Adaptation (CCA) Strategy, its links to widerpolicy initiatives for South Tarawa and for Kiribati as a whole, and the generalenvironmental context of the strategy, were examined. General features of thestrategy, and of the policy and programme development process, could then beassessed for their degree of adherence to good environmental planning criteria.The component activities making up the adaptation strategy were examined in abroad but coherent fashion to help identify the major environmental implications.These component activities also correspond closely to the kinds of activitiesproposed by the National Consultations and related processes under KAP I forinclusion in KAP II. A simple impact (interaction) matrix was used to help organisethis approach, and attention was paid in particular, to the totality of the broadenvironmental impacts (i.e. a cumulative assessment), the relative distribution ofimpacts between the biophysical and social environments, and any specific issuesthat had not been identified in relation to individual projects in the CCA Strategy. Insome cases more detailed environmental impact assessments (EIAs) would beuseful and have been identified.

In light of broad environmental implications of the adaptation strategy, the studyexamined the issue of monitoring and the feedback of information into thedevelopment activity. The emphasis here was on monitoring for the widerenvironmental concerns, rather than project specific concerns, although in realitythere is a necessary link.

The SEA will also examine the existing structure of responsibility in Kiribati forenvironmental screening, assessment, enforcement and monitoring across thevariety of sectors in which environmental issues are a major concern, with the intentof recommending steps that can be taken to improve that regime.4. Government Policy on Adaptation to Climate ChangeKiribati is particularly vulnerable to the impacts of climate change, which constitute amajor strategic risk to the economy and national well-being. The nature of the riskhas to be specified and appropriate responses developed at national and local levels.As Kiribati cannot escape climate change it must adapt to it. The adaptation processneeds to give people the best possible chance of living decent lives during andbeyond the period of climate change now foreseen. As the impacts of climate changereach into all aspects of life in Kiribati, broad public consultation and participation inplanning and implementation are needed for sustainable responses. Manydepartments of Government are involved, requiring both central policy co-ordinationand clear delegation of responsibility for action. And as the precise speed and extentof the future of climate change is unknowable, adaptive responses themselves needto be risk-minimising, flexible and progressive.

The current statement of National Development Strategies (NDS) 2004-7 identifiesclimate change as a major area of developmental concern. In the Key Policy Area 1,Economic Growth, Issue 3 states 'Climate change brings potentially costly risks toeconomic growth', and calls for the development of 'participatory and cost-effectiveways of minimising and managing risks of loss from climate change-related events'.Government's policy on adaptation to climate change therefore, has focused on

a) Kiribati should be mentally, physically and financially well prepared to dealwith whatever climatic trends and events the future may hold;

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b) this should be achieved through a co-ordinated, consultation-basedadaptation programme carried out by officials and private agencies; and

c) the financial costs attributable to the national adaptation programme should

be met as far as possible by external assistance.

5. Kiribati Adaptation Programme

The Climate Change Adaptation (CCA) Strategy is the product of a planning process

begun in the early 1990s, but given greater focus in 2003 with the establishment of a

National Adaptation Programme of Action (NAPA) within the Ministry of Environment

and the Kiribati Adaptation Programme (KAP) at Ministry of Finance. In 2004 the

direction of NAPA and KAP was unified under the direction of the Office of the

Beretitenti (OB), which retained the unified role of NAPA-KAP structure of Climate

Change Study Team (CCST) and National Adaptation Steering Committee (NASC)

respectively, to monitor developments and advise OB and Cabinet on management

of the CCA Strategy.

The Kiribati Adaptation Programme (KAP) key goal is to reduce Kiribati's vulnerability

to climate change, climate variability and sea level rise. It is planned to be

implemented in three phases and based on participatory consultation and would

identify adaptation mechanisms suitable for adaptation at national, community and

household level. The approach of KAP would be more explicitly project-oriented, and

making greater provisions for use of external assistance in the project design.

The section under SEA review is Phase II: Pilot Implementation (2005-2008) which

is currently being prepared. Its objective is to implement pilot adaptation measures,

and consolidate the mainstreaming of adaptation into national economic planning. It

consists of four components, two of which will involve implementation of adaptation

activities - Component 1, Priority National Adaptation Investment, funding priority

adaptation measures mainstreamed into the MOPs of key sectoral Ministries, and

Component 2, Pilot Island Adaptation, funding pilot community-based adaptation

investments in two pilot islands according to a whole-island approach.

An important outcome of the KAP Phase I Preparatory Stage is the Government of

Kiribati's Climate Change Adaptation (CCA) Strategy completed through the CCST

and NASC combined committee process.

6. The CCA Strategy: Rationale and Aims

Over the years the I-Kiribati have developed effective mechanisms for coping with

the effects of the climate, including both short term (disasters and other natural

events) and longer term changes. However, in recent years the economic and social

realities of life in Kiribati have begun to change with such aspects as a money-based

economy and a stronger influence of government provided services tending to

weaken the traditional self-reliance of the people while the size and value of physical

assets has increased several fold. This means that the assets at risk from climate-

related threats are now much greater than in the past at the same time the population

has become more dependent on outside resources for the maintenance and

preservation of those assets. Since long term climate change are likely to intensify

short-term events-storms and droughts-and make them more frequent, there is a

clear need for a more strategic approach to managing the risks associated with such

change, and for coordinating activities at the village, island and national level in such

a strategy.

The CCA Strategy therefore aims to strengthen Kiribati's ability to handle climate

change by action under eight broad headings: integration of CCA into national

planning; external financial and technical assistance; population and resettlement;

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governance and services; freshwater resources and supply systems; coastal zonesand structures; marine resources; and survivability and self-relianceOther "soft" community options and interventions have been identified as other likelyareas for possible subprojects:

o Planting schemes for coastal erosion control, including, e.g., mangrovereplanting or expansion, coastal land reforestation, planting of ironwood plants("te nikabubuti", "te aroua", etc.) and other steps to stabilize coastal andforeshore areas.

o Marine protection strategies such as coral replanting and protection schemesand establishment of marine conservation areas

o Widening of channels for wetlands flushing.o Water and sanitation improvements, such as relocation or protection of

communal drinking sources, water tank construction and guttering, water pumpsand pipes for distribution, etc. Materials would be provided by the grant funding,while labour and other inputs would be provided by the community or relevantgroups.

o Replanting of food plants and trees or introduction of additional kinds ofagricultural products and practices, restoration of inundated large community orextended families babai pits.

o Planting suitable trees around houseso Community or village waste management systemo Control of vector-borne disease.o Other projects not mentioned but which fall within GEF focal area of conserving

biodiversity, reducing adverse climate change, and protecting internationalwaters.

7. Environmental ManagementThe Environment Act 1999 provides for and establishes an integrated system ofdevelopment control, environmental impact assessment and pollution control forKiribati. The Minister of Environment, Lands and Agricultural Development isresponsible for the due administration and implementation of the Act. The Minister'sfunctions include, but are not limited to:

o Overall management and control of the Environmental and ConservationDivision of the Ministry;

o Protect, restore and enhance the quality of the environment of Kiribati, balancedagainst the need to promote sustainable development;

o Develop, establish and administer systems of prevention and control of pollutionin both the industrial and non-industrial sectors;

o Develop national standards to promote sustainable development and to monitorthose standards through environmental auditing;

o Assist in developing legislation for systems of environmental planning atnational, provincial and local level, and the development of national, provincialand local environmental plans;

o Promote the participation of communities in environmental decision-making.All development proposals of government ministries, island councils, privatedevelopers and non-government organisations must undergo the environmentalscreening procedures of the Environment and Conservation Division (ECD) asstipulated in the Environment Regulations 2001. The screening procedure requiresall project proponents to apply for a permit to carry out a prescribed development.Te ManninWa Group Pty Ltd vEnvironmental Planning & Management Specialists


The application form will be reviewed by ECD to determine whether the particularproposal requires further environmental study in the form of an initial environmentalexamination (IEE) or an EIS (a comprehensive environmental impact assessment(EIA) study) report. The EIA procedure allows for the project proponent to conduct its

own EIA study and implement the ECD approved environmental management plan of

project activities. The ECD would also provide monitoring measures for the

proponent to implement and for which National Environment Inspectors would closely

monitor environmental compliance of the project.

A CCA project activity in an outer island would undergo the same environmentalscreening system where the initial application and subsequent regulatory activitiesare handled through the Environment and Conservation Division. Implementation,management and monitoring of the local project would be supervised by the IslandCouncil involved, with possible assistance from ECD.

The Environment Act should be revised to allow the EIA process to be used for all

sorts of activities that impact on the environment (eg pollution, impacts on protectedspecies and protected areas, land clearing etc) and not just developments; and made

it the responsibility of the developer to bear the cost of publicising the EIA.

Environmental scrutiny of projects is often avoided by government agencies mainlybecause there is the lack of adequate interagency co-ordination and co-operationmechanisms. The EIA system itself at ECD has a number of institutionalshortcomings including:

o Lack of funds for data collection and surveying;

o Lack of trained professionals; and

o Lack of equipment and other physical resources.

Financial and technical support will be required to address these issues and two

other needs, to improve interagency co-ordination and co-operation:

o Cells or environmental units in sectoral agencies or line ministries, which canbegin to 'internalise' environmental policies and impact assessment practices in

all aspects of the line ministry's affairs (project planning, design and

operations); and

o Development of effective interagency mechanisms and other networks of

environmental specialists that can be called upon to help prepare or review EIAstudies.

Once the Environment and Conservation Division has acquired trained professionals,the central EIA unit can best take on the role of referee and watchdog responsible forissuing regulatory and technical guidelines, resolving interagency conflicts,disseminating information, and the like. Under the guidance of the central EIA

agency, however, primary responsibility for infusing environmental values into

project-identification and development activities should remain with line ministries,sectoral agencies, Island Councils and private businesses.

The Minister of Environment, currently, lacks professional development advice. In the

meantime, the Minister may wish to retain the membership of the National AdaptationSteering Committee (NASC) to review all development applications and

subsequently comprise the Minister's national advisory committee on environmentalmatters, and serviced by the central EIA unit.

8. Integration of CCA into National Planning

The national planning and budgeting process comprises five main parts:

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National Development Strategies (NDS): a four-yearly statement of nationaldevelopment issues, priorities and strategies-the broad picture of Governmentthinking and intentions for near term implementation.Long-range policy and strategy statements: policies and strategies developed byresponsible ministries and approved by Cabinet for specific aspects of nationaldevelopment in a longer (ten years or more) time frame: for example, educationpolicy, population policy, transport policy, policy on information technology, policy onadaptation to climate.

The Annual GoK Budget approved by Parliament towards the end of each financialyear, estimating revenue and authorising expenditure for the following year oncurrent operations and development projects.Multiyear Budget Framework: a rolling seven year framework presenting the AnnualBudget as the mid-year, with three past years (actual out-turns) and three forwardyears, to show recent fiscal performance and the fiscal implications of theGovernment's current NDS and policy statements.Ministry Operational Plans (MOPs) and Public Enterprise Business Plans (PEBPs):are rolling annual statements of the condition and capabilities of the ministry or publicenterprise and its operational or business plans for the current year and one or twoyears ahead. MOPs explain how ministries will spend the funds allocated to them inthe Annual Budget in pursuit of NDS strategies and their statutory and policyresponsibilities.

Integration of CCA Strategies into this process is apparent at each level. TheNational Development Strategies 2004-2007 identifies climate change as a seriousrisk to economic growth and calls for development of ways of minimising andmanaging the risk of loss. The Government's recent policy statement on adaptationto climate change sets out three main policy aims, which in turn shape the presentstatement of CCA Strategy. This explains how the Government intends to improvethe security of public assets in the face of climate-based risks, and how it proposes toassist households, communities and non-state agencies to do likewise with their ownassets. In the MOPs of ministries with specific responsibilities for parts of thestrategy, under the relevant programmes of each ministry, appear activities related toimproving asset protection, minimising risks to persons and property and conservingresources for subsistence and economic use. In the Annual Budget, within theauthorised expenditures of the relevant ministries, appear allocations to theappropriate programmes of a recurrent or developmental nature, with attribution toaid programmes in the case of externally funded activities.Planning and implementing CCA Strategies involves many ministries and agencieswith different technical specialisations. Central policy coordination will therefore beprovided by the Office of the Beretitenti (OB) through the recently established divisionof Strategic Risk Management. A technical working group designated the ClimateChange Study Team (CCST) is currently based in the Ministry of Environment, Landsand Agricultural Development (MELAD) and chaired by a senior MELAD official. Thisgroup is made up of national climate change specialists and officials from the mostconcerned ministries. CCST monitors climate change nationally and globally andassesses the vulnerability of islands and investments or activities to climate-relatedrisks. CCST reports to the National Adaptation Steering Committee (NASC) currentlybased in Ministry of Finance and Economic Development (MFED). NASC is chairedby the Secretary to the Office of the Beretitenti (OB) and includes senior officials fromconcerned ministries and representatives of churches and non-governmentorganisations. NASC reports to and advises OB, and through OB it advises Cabineton CCA matters. Cabinet decisions are advised to NASC and implemented byresponsible ministries.

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9. Population and Resettlement

Population policy has important linkages to CCA policies and strategies. The number

of persons living on an atoll and engaging in subsistence or money-earning activities

directly affects the nature and extent of the risks they face from climate change, the

demands they place on the environment and natural resources, and their ability to

plan and undertake adaptation measures. The expected size and location of the

population are thus critical factors in analysing climate-related risks and planning

CCA measures. In turn, those measures may include the relocation of people within

islands, to other islands, or outside Kiribati.

The Government's current population policy aims at a stable population of about

125,000 persons by 2025. Of these, about 50,000 would be in North and South

Tarawa, 45,000 in the other Gilbert Islands, and 30,000 in the Line and Phoenix

Islands (of whom 25,000 would be on Kiritimati). This distribution would be

sustainable on the basis of known and estimated land and water resources, provided

that effective CCA measures are put in place to handle the risks to those resources

that are expected to arise from climate change between now and 2050.

To achieve overall stability the population policy requires both a rapid transition to

smaller family size through parental self-management of fertility, and active

promotion of permanent migration to Pacific Rim countries. Activities in adult

education, school curriculum development, family planning and mother and child

health services aimed at lowering fertility will be appropriate for direct external

assistance in association with this CCA strategy. The need to reduce the vulnerability

of Kiribati to increasing physical risks caused by climate change forms an important

part of the case for host country agreement to government-sponsored and self-

sponsored emigration to resettle about 10,000 I-Kiribati overseas in the next twenty

years.

Any resettlement programme under the climate change adaptation activities should

undergo environmental and social scrutiny. In particular, the social political system,

the provision of social services (health centres, telecommunications, basic food

supplies, etc.) and land zoning and planning studies should be undertaken as part of

the planning process of the resettlement programme. A comprehensive natural

resources inventory of the island to be resettled would benefit the determination of

the carrying capacity of the island to sustain the livelihoods of the potential island

population, but also determine appropriate potential CCA infrastructure development

activities, such as freshwater and marine reserves and waste and sanitation

structures.

10. Governance and Services

Responsibility for operational planning and the carrying out of activities to implement

CCA strategy will lie with the relevant technical ministries and public enterprises, but

all such activities must undergo environmental scrutiny as stipulated in the national

environmental screening procedures. These implementing agencies are Ministry of

Public Works and Utilities (MPWU) (water, infrastructure and public buildings), the

Ministry of Environment, Lands and Agricultural Development (MELAD) (external

liaison on climate change, environmental management and regulation, agricultural

extension), and MISA (support to Local Government in urban areas and outer

islands), Ministry of Communications, Transport and Tourism Development (MCTTD)

(telecommunications, weather and climate monitoring and weather forecasting). Each

ministry's operational commitments will be found in the relevant programmes in its

Ministry Operational Plan (MOP), while the appropriation of local funds and allocation

of external aid to these purposes will be found in the Annual GoK Budget.

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At practical level coordinating committees will be established as required by theappropriate ministries. The Foreshore Management Committee of MELAD, with inter-ministry membership, is expected to assist MELAD to discharge its environmentalregulatory and permitting functions relating to seawalls and foreshore structures.Generally, the regulatory functions of MELAD and other agencies concerned withland use and structure design appear to be frequently bypassed by Governmentdevelopers. This strategy will require the overhaul of arrangements for co-operationamong regulatory agencies and Government ministries to close loopholes throughwhich unexamined developments can slip, and to avoid unnecessary processingdelays or variations in standards.

Improving the capacity and effectiveness of local government is crucial toimplementing this CCA strategy. Many of the services that most directly affectpeople's ability to handle climate variability and change fall naturally to be deliveredat local government level, both in urban areas (South Tarawa) and the outer islands.Building standards and densities, waste disposal, land planning and permitting, landreclamation and community coastal defences are all within the remit of localgovernment. Kiritimati, where national government has until now been responsible foreverything, is now moving towards provision of services by local government.

Government of Kiribati is taking steps (not for the first time, but with an increasedsense of urgency) to strengthen capacity at local level and to equip localgovernments with more and better information on CCA and related issues. The CCAproject under design for submission to GEF includes a small grants scheme to assistisland-level CCA-driven investments, and the possibility of aid to constructcommunity storm refuges in certain islands is discussed in the strategy statement.

11. Freshwater Resources and Water Supply

The priority concern is an assured supply of uncontaminated fresh water which iscrucially important to the welfare of atoll communities, and ways of achieving itconsistently rank highest among the coping strategies identified in nationalconsultations. With little industrial activity in Kiribati so far, the main use of freshwater is domestic consumption for drinking, washing and sanitation. Freshwaterresources comprise the groundwater lenses found in almost all atolls and rainwatercaught and held in public or private storage tanks.

The principal nature of the water problem is security of access to these resources isvulnerable to: lack of maintenance causing water loss in reticulation, collection andstorage; pollution caused by human activity in water reserves or rubbishaccumulating in catchments and storage systems; drought interrupting thereplenishment of reserves by rainfall; damage from violent storms through salt waterinundation of the water lens and wind damage to catchment and tanks; and, failure totake full advantage of opportunities for the collection of rainwater through theinstallation of gutters, rainwater storage tanks and associated equipment.

The prospect of increasing climate variability and long-term climate change requiresstrengthening of the ability of freshwater resources to serve atoll communities undermore extreme conditions.

The CCA strategy requires action in the following areas:

i. make more efficient use of existing resources by improved demandmanagement, particularly in South Tarawa and Kiritimati, through leakagecontrol, consumer education, metered consumption and pricing policy, andwater-conserving plumbing systems.

ii. maximise use of existing resources and develop new resources, byexpansion of rainwater collection and storage (with central management and

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distribution system for public rainwater reserves), protection of knowngroundwater by enforcement of land reserves and use of non-pollutingsanitation systems, identification and development of unused groundwaterreserves, land reclamation to create new groundwater reserves, andmonitoring and periodic feasibility updates of desalination plant.

iii. strengthen capacity to monitor weather and climatic conditions (MCTTD,MELAD) and the extent and condition of groundwater resources (MPWU,PUB), and to plan and manage water supply systems that can withstandincreased climate variability and long-term climate change.

These activities need to be extended and reinforced as part of a broader strategicinitiative, led by MPWU and funded as far as possible by external assistance, tomake rainwater and groundwater resources and supply systems robust againstclimate-driven loss and damage.

Again, environmental scrutiny must be applied onto these freshwater resources andwater supply activities. Land use planning and zoning need to be integrated withcoastal area and environmental management of the project site to ensure effectivecoordination and implementation of CCA projects.

12. Coastal Zones and Structures

Threats to physical assets and infrastructure from climate change take the form of anincrease in the extent and severity of coastal erosion causing loss of useable landand existing investments, and a rise in the incidence and severity of flooding byinundation from the sea damaging or destroying structures and water lenses.

Government of Kiribati has a dual CCA responsibility in relation to assets andinfrastructure. That is: to take preventive and remedial action ('climate-proofing') tominimise the risks to publicly-owned assets and infrastructure; and, to keep thepublic informed about climate change and the ensuing risks, and to assist (and whereappropriate to require) the public to take timely action to minimise such risks.

There is no single solution for all coastal impacts. A range of tools provides a choiceof possible solutions to be evaluated for each identified site at risk and the nature ofthe risk. The tools include hard engineering solutions (e.g. seawalls, breakwaters,modification to causeways); solutions that enhance the ability of natural landforms towithstand erosion and flooding (e.g. use of aggregate to nourish island margins, re-vegetation to assist beach stability, steps to reduce degradation of reefs); planningsolutions that restrict the use of land exposed to flooding or erosion, and control theextraction of aggregate that destabilises the coastline. The uncertainty inherent inCCA also means that flexibility as to further responses should be built into solutiondesigns; and that in some circumstances it may be best to apply the PrecautionaryPrinciple-to do nothing, immediately-until the direction and nature of the threat andthe cost of countering it can be better assessed.

It is critically important for CCA that adequate supplies of sand and gravel areavailable for engineering works from sites chosen so as not to undermine coastalstability. The current practice of beach mining carried on by individuals, householdsand building contractors demonstrably does destabilise beaches and contributes toerosion and eventually flooding and loss of land. The problem is most acute in SouthTarawa but potentially exists in all the islands. It is therefore an urgent requirement ofthe strategy that this source is developed and supplies of aggregate from it be madeavailable as quickly as possible. Lagoon dredging has potential adverse impacts sothis activity will need to follow the national environmental screening procedure.

At the same time, strategies to prevent continued removal of aggregate byindividuals, households and companies from sensitive areas need to be developed.

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This will necessitate public information and stronger enforcement, but ultimatelysuccess will depend on providing a dependable supply of aggregate to thesestakeholders at a price attractive enough to convince them not to sandmine on theirown.

The whole Climate Change Adaptation initiative has to be seen in the wider contextof national coastal development policies. The NDS 2004-07 does not explicitlyconsider the environmental implications of the development objectives set out in theNational Development Strategies. However, the Environment Act 1999 does addresssome of the issues, but would require amendments to address environmentalimplications due to climate change and climate variability.An integrated coastal management plan (ICM) would encompass all land and coastalenvironmental implications of the development objectives set out in the NationalDevelopment Strategies 2004-07. More importantly, the ICM Plan would provide theplanning and management base for addressing projected impacts of climate changeby establishing a permanent Coastal Management Office and inter-agencycoordination mechanisms.

13. Marine Resources

Increasing population and climate change appear to be combining to place greaterpressure on inshore and lagoon fisheries and marine animal life associated with thecoral reefs that define the atolls. Coral bleaching is reported in several parts ofKiribati, raising concerns about sustenance of the natural food chain supportingfisheries on which the atoll populations depend. The establishment of marineprotected areas in collaboration with island communities to conserve stocks ofheavily-targeted species, and the replenishment by aquaculture of depleted stockswhere over-fishing or climate events have undermined natural replenishment, formpart of Ministry of Fisheries and Mineral Resources Development's programmecontributing to national CCA strategies.The current threats to marine resources are water contamination throughsedimentation and leachates from land sources, and reef disturbances throughcoastal constructions and storms. Apart from natural storms, all other threats can bemitigated through proper integrated coastal zone management and environmentalscreening procedures of all development activities for the particular island sector.14. Public Consultations

Two Kiribati Adaptation Programme documents provide extensive coverage of theNational Adaptation Consultation, a crucial element of the process of agreeing onnational adaptation priorities and benchmarks and the mainstreaming of adaptationinto economic planning. There were two national consultation workshops conductedin South Tarawa but with participation from all outer island representatives, including28 community consultations in 4 islands. The documents 'Report on the SecondNational Consultation held at Otintaai Hotel, Bikenibeu, from 3r to 6'h November2003' and 'Social Assessment Final Report' document the inputs and opportunitiesfor vulnerability reduction by the various stakeholders themselves that do reflect thereal national priorities which will have local support once the priorities that areidentified need to be implemented.

The Climate Change Study Team (CCST) has selected 50 adaptation options thatwere seen to be relevant for climate change adaptation. For the 50 options, aquantitative ranking has been carried out with the aid of scientific criteria tosupplement the ranking exercise of the National Consultations. Nine scientific criteriawere selected:

i. degree of adverse effects/vulnerability being addressed

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ii. cost relative to benefits

iii. timing/urgency

iv. environmental impacts

v. culturally acceptable

vi. level of implementation

vii. participatory

viii. synergy with poverty reduction

ix. synergy with other multilateral environmental agreements

The 50 adaptation options and their ranking are presented at Appendix A butprimarily revolve around ten management resource areas:

1. Awareness

2. Water resources

3. Inundation/Coastal erosion

4. Health Impacts

5. Agriculture

6. Family planning

7. Fisheries (bleaching, temperature change)

8. Waste management

9. Overcrowding/Migration

10. Miscellaneous other options

15. Comments on CCA Strategies

Government policy on adaptation to climate change set the context for the ClimateChange Adaptation (CCA) Strategies in clear terms. The focus was to be onimproving the well-being of local people by using the available natural resources, butclearly recognising the need for wise use of those resources, be they agricultural,fishery or aesthetic resources and/or external assistance. The implication is clear;the resulting development proposals were expected to balance the economic, socialand environmental needs of the islands so that local people could achieve a betterstandard of living by adapting to climatic trends and events, while protecting theirresource base. This is one of the main principles under-pinning the concept ofsustainable development and it is clear that the CCA Strategies was expected to fitwithin this context.

Three observations can be made, however. First, it is very clear from theGovernment Policy on Adaptation to Climate Change and the two KAP reportsmentioned earlier that an extensive and co-ordinated consultation-based adaptationprogramme had been carried out by officials and private agencies. There is also anindication that public participation would be a consideration in the continuing KiribatiAdaptation Programme (KAP).

Second, CCA planning requires a good understanding of the environment in the area.It is clear from the Phase I of KAP that the social and natural environments were notexamined to establish parameters such as natural carrying capacities, resource uselimitations, sustainable yields, limits of acceptable change, or other similar measuresthat are used to identify the basic environmental limits on economic and socialactivities. For instance, with beach sand supply, it is evident that no sand sediment

Te ManninWa Group Pty Ltd xiEnvironmental Planning & Management Specialists


budget survey has been carried out to determine the extent of sediment supplies. Isthere a limit beyond which further usage would harm the coastal resource andthreaten social and economic activities?

Third, the KAP Phase 11 was the stage at which an environmental assessment ofdevelopment options would most usefully be introduced. What are the environmentalconsequences of promoting more coastal infrastructures on South Tarawa? Will theexpansion of coastal resources use threaten the natural or social environment insome fundamental way? An SEA would be very useful for informing the policyprocess at this stage of the programme.

The CCA Strategies contain a mixture of elements, reflecting the original brief in thePolicy Statement. There are specific activities aimed at the improvement of livingconditions for local people under climate changes and climate variability, while otheractivities are more clearly aimed at improving the economic base of the communityareas - for example, by addressing infrastructure problems. The CCA strategy alsocontains broad indicative policies about the future management of coastaldevelopment in South Tarawa and other islands in Kiribati.The practical activities, i.e the projects, are largely funded through the Government ofKiribati, often with the assistance of donor countries and institutions, and cantherefore be promoted with greater certainty.

The policies aimed at managing the future improvement of living conditions for localpeople under climate changes and climate variability, are not as easily implemented,as they are dependent on the establishment of control procedures such as legislation.Consequently, there is a clear danger that the broad, integrating policy framework willbe overlooked and the CCA Strategies will be implemented in an incremental manner.This has implications for environmental aspects of the adaptation policy. Once a planbecomes a set of discrete projects, the broad environmental principles underlying theplan or strategy can be lost sight of, diminishing the original value of taking a strategicapproach to the development of CCA strategies.Overall, it would seem that the Climate Change Adaptation (CCA) Strategy is basedon earlier steps that explicitly recognise the importance of environmentalmanagement and the need to avoid adverse impacts on the social and biophysicalenvironment. The specific topics to be covered in the CCA strategies were generatedwithin that context and it can be assumed that they were considered to be consistentwith the underlying sustainability perspective of the Government of Kiribati Policy onAdaptation to Climate Change. However, there is no evidence of any formalexamination of the possible environmental consequences prior to the selection of theparticular adaptation options. This does not mean that those options are not the rightones for Kiribati and its people, but it does leave open the possibility that importantenvironmental problems may still result from the initiatives being pursued.

The KAP Social Assessment Final Report (2004) and Report on the SecondNational Consultation held at Otintaai Hotel, Bikenibeu, from 3 ed to 6h November(2003) provide valuable overviews of the major environmental concerns associatedwith the increased vulnerability of island people due to global warming and climatechange. Through community-based surveys the four main areas of increasedvulnerability as identified by communities are: Coastal erosion, Diminishing FishStocks, Increased and more intensive temperature and sunlight, and Rising SeaLevel. The reports summarise the particular problems being experienced in differentparts of Kiribati for instance, the recurring droughts and westerlies/storm, which hadbecome more unpredictable thus making people more vulnerable than ever. Thedocuments also prescribes a variety of possible management/coping responseswhich have been used to develop environmentally based development policies for

Te ManninWa Group Pty Ltd xiiiEnvironmental Planning & Management Specialists


activities such as integrated coastal management and Climate Change AdaptationStrategies.

16. Implications of the Integrated Coastal Management Plan

The Climate Change Adaptation (CCA) Strategy includes a number of projects thatdirectly or indirectly address coastal management related problems in Kiribati. Inorder to undertake these climate change adaptation proposed projects, theIntegrated Coastal Management Plan must be fully institutionalised within theappropriate Ministry set-up. In all likelihood, integrated coastal management planningwould become the focus for the environmental management of CCA proposedprojects, and providing a service centre/framework for all terrestrial and marinedevelopment projects on South Tarawa and Kiribati as a whole

Apart from the coastal protection needs of the CCA strategy, one particular issue thatwill need to be addressed in light of the proposed developments, is the question ofsolid waste management, especially domestic refuse. Population increase, alliedwith increasing standards of living, plus an increase in commercial activity, willinevitably lead to greater amounts of solid waste for disposal. This issue does notappear to have been considered in the development programme for outer islands, yethas serious environmental implications. At present, solid waste is being dumped oncoastal areas near the beach. From experience around the region, one could saythat the location of the waste site is the worst possible, given the propensity of suchsites to release leachates into nearby water bodies and groundwater, affecting water

quality and the local aquatic biota. Management of the waste sites through anintegrated coastal zone management plan would ensure the conformity with normalsanitary landfill standards (separation of waste types, covering waste at frequentintervals, etc.), and provide long ternm benefits for the land and adjacent marine areasand for the health of local communities.

It is also worth noting that the biophysical impacts of resettlement or relocation ofpeople are reasonably well known and acknowledged (see the World Bank documenton resettlement for example). But there is increasing concern around the world aboutthe social impacts of resettlement on small communities in areas of great naturalvalues, such as the Outer Islands of Kiribati. The changes brought about by

migration in small communities can be dramatic: the structure and dynamics of the

local economy change; the cohesion of family units can be disrupted as the relativeeconomic roles of women and men, and young people, change; visitors can bring

social and cultural lifestyle innovations that may be very different to local customs; the

community experiences and influx of people from rural areas, outer islands, or fromoverseas attracted by the increased economic opportunities, putting pressure on

housing, services, infrastructure and so forth. These changes can result in oncecohesive communities becoming disrupted, with alienation of young people, greatereconomic disparities between people involved in commercial activities and those stillin traditional roles, increasing prices of goods for local people, commercialisation of

cultural activities and other similar changes. Together with a degradation of the localbiological and physical environment through migration and relocation activities,affecting traditional food gathering areas or recreational and cultural areas, thesechanges can have dramatic effects on local communities.It is important that the trade-offs between the undoubted benefits of CCA optionssuch as resettlement and government relocation and the adverse effects on the socialand biophysical environments are recognised and explicitly addressed by the localcommunities. Possibly the worst impact is a sense of helplessness as governmentgrowth seems to overwhelm a local community. Involvement in planning forresettlement and outer island development, and retaining a strong interest inprotecting the very resource base that supports the island development, gives local

people a sense of control that promotes a successful and sustainable island

Te ManninWa Group Pty Ltd XIV



development. An integrated coastal zone management plan for an outer island wouldenhance island development whilst conserving the natural heritage andenvironmental balance of the island.

17. Assessment of the CCA Strategy

One main impression from the CCA Strategy is that the integrated coastalmanagement aspect is given a low degree of prominence. This lack of emphasis onan integrated coastal management policy seems to fall short of what might beexpected from the GoK Policy on Adaptation to Climate Change. For instance, theCCA proposals to take preventive and remedial action-"climate-proofing"-tominimise the risks to publicly-owned assets and infrastructure have not consideredthe establishment of coastal environmental management parameters such ascarrying capacities, resource use limitations on aggregates for example, requiringsediment budget studies, sustainable yields, limits of acceptable change, or othersimilar measures that are used to identify the basic environmental limits on economicand social activities. The emphasis of the CCA Strategy might, therefore, have beenbetter placed on an appraisal of the role of CCA in the primary sector activities of anIntegrated Coastal Management Plan, and then considering the specific CCAprojects from the perspective of improving and enhancing that role. Infrastructureimprovements, construction of protective seawalls, etc., would then be clearly seenfrom that perspective.

The point is not to ignore the CCA project proposals, and certainly not to ignore theimportance of protecting the coastal environmental qualities that support andencourage CCA proposals but, sustain the long-term viability of the local economyand the local communities through balanced developmental intentions.18. Project AssessmentA simple impact matrix was formulated to review the broad environmental implicationsof the various project proposals. The matrix as shown in Appendix B, helps tocompare the broad environmental implications across the various projects andprovides guidance in identifying possible cumulative impacts, and interactionsbetween projects that might create enhanced impacts or other problems, such ashazards. It can also be used to examine the distributional aspect of impacts, that is,who is winning and who is losing from the overall set of projects.The assessment explicitly differentiates between the construction phase of theprojects (denoted by C in the matrix), and their subsequent operational phase(denoted by L, for long term, in the matrix). It is clear that many, if not all theproposed projects are likely to have adverse effects at the construction stage. Theseare mainly impacts such as noise, disruption of daily social and economic activitiesand the exposure of soil to rainfall and coastal erosion processes during theconstruction period. The latter possible effect is largely responsible for the -C entriesfor the marine environment in the matrix; this envisages the possibility of an increasein sedimentation drift through normal erosion and other coastal processes and fromcoastal infrastructure constructions, affecting marine water quality and also marineorganisms, as well as aesthetic values.

Most of the adverse effects fall on the local people and the marine environment,which is entirely as expected, given the CCA projects will take place in coastal areas.There are some indirect effects in the rural and urban sectors mainly due to the sandmining and dredging operations which provide aggregate for road and otherinfrastructure construction. The environmental reserve, by preserving a major area ofcomparatively unmodified coastal area (e.g. North Tarawa Conservation Area), is theonly project that would impinge directly on terrestrial and marine natural ecosystemcomponents (soil, fauna and flora). It can also be considered to have long term

Te ManninWa Group Pty Ltd xvEnvironmental Planning & Management Specialists


benefits for the marine environment since it is a permanent reserve set aside to

compensate for the loss of lagoon reef ecosystems due to the growing number of

lagoon reef disturbances

Local people should benefit from a number of the proposed projects, in a variety of

ways. Health is a key area, and road construction (less airborne dust), better water

supply (less chance of contamination, less chance of seawater intrusion), better

sanitation (again, better groundwater quality) and better drainage (less overflowing of

septic tanks and pits, fewer puddles for insects to breed, etc.) are all likely to improve

aspects of health in the local community. Social activities (daily living activities),

including interaction with other local people would be enhanced by many of the CCA

proposals, although adverse effects from construction activities will be felt (disruptedaccess to fishing grounds) but the more serious disruption to village life is the loss of

the sandy beach adjacent to the village centre ( where village children began their

initiation to seacraft activities) to a protective seawall which also spoils the serene

aesthetic view of the village. There may also be long term adverse effects from

resettlement (as experienced in the resettlement of Tabuaeran and Teraina Islands),

and the decentralising of government to outer islands. Visual amenity in the urban

areas of South Tarawa would benefit in the long term from most of the CCA

proposals, although all construction activities can be considered adverse amenity

impacts-but unavoidable-in the short term.

Economic activities show an interesting pattern. Communities would benefit in the

long term from all the proposals. They all improve the lot of the communities in a way

that they would be better prepared to deal with whatever climate trends and events

the future may hold. Of the other sectors, agriculture and fishing would probably only

benefit from some of the other projects, such as better waste and leachate

management, while indirect benefit would also come from improvements in the

current agricultural and fisheries sectors but also from the environmental reserves.

However, the proposed decentralisation of government, implying more central

government functions on outer islands, would adversely affect the village maneaba

system of the island communities by undermining the particular island cultural identity

and traditional role of village communities to administer themselves. This point

indicates one area of adverse impact suggested by the matrix - the historical and

cultural aspects of rural development. The loss of authority of village decision makers

to central government authorities on the island would be changes that local people

may not wish to see.

Most of the cells in the matrix with entries are on the second half of the matrix

(essentially the "social" impacts of the proposal). The effects on people, both

beneficial and adverse, would seem to outweigh the likely effects on the natural

environment. Even the effects on the marine environment can be seen in many waysas effects on the local community; these include limiting fishing, recreation, amenity

and traditional use of the marine area.

When considering the likely impacts, we have assigned the labels "adverse" and

"beneficial" depending on how we think various sectors of the community would

respond to the changes. But these judgements are essentially value judgements, and

ultimately the local people must make the judgement about the changes that mayoccur as a consequence of the proposals. They must decide if the resettlement

proposal and decentralising government to outer islands are cultural issues worth

further detailed study or can simply be decided upon by central government officials.

This type of value decision involves trade-offs between benefits and costs and it is the

local community that has to live with the results of the trade-off calculations. For this

reason it is important for the people to have some involvement in considering the

proposals and their likely effects.

Te ManninWa Group Pty Ltd xvi



In this regard one might ask the local community if they want the benefits of improvedvisual and amenity values in the village, and enhanced climate change adaptationcapabilities, when some local people will have to bear the cost of a limited marineresource and busier roads (with associated dirtier and noisier and more hazardousliving conditions), and the agricultural and fishing sectors primarily benefit from onlytwo of these projects.

In terms of cumulative impacts, the most obvious one is the combined effects of theconstruction phases of all or several projects if they were to be undertakenconcurrently. Being in a comparatively small geographical area the constructionimpacts could be severe in any particular island. At Tarawa the disruption to trafficand pedestrian access, noise, dust, and the danger of a substantial increase in thevolume of sediment drift within Tarawa Lagoon are a major consideration. Althoughthe timetable for implementing projects is largely determined by the availability offunds, some thought could be given to the possibility of co-ordinating the constructionphases of certain projects to minimise the potential for social and economic disruptionand sedimentation transport.

The marine environment is, not surprisingly, the major recipient of many of thepossible adverse effects of the proposals, largely through the sedimentation problem.However, the combined benefits would be large if the proposals were effective.Reduced sewage from seepage and surface run-off, and reduced silting in the longterm as a result of properly drained and sealed roads. At the same time, it must berecognised that a substantial contribution to the sedimentation problem comes fromthe activity of all coastal constructions (such as seawalls, causeways and dredging orreef extraction) pigs on beach backyards, removing ground vegetation over largeareas and exposing surface soil to erosion by rainfall. A comprehensive approach tomanaging marine water quality and the sedimentation/erosion problem in SouthTarawa lagoon, for instance, will have to include strategies for dealing with theseissues. One way to tackle this is to involve the community in recognising and solvingthe problems with the marine environment. Solutions to illegal reef reclamation andcoastal infrastructure development will need to be initiated by the community andenforced by social pressure and sanctions if they are to be successful.20. Coastal Zone Use Policy FrameworkA key proposal not included in the matrix is the policy of coastal land usemanagement (commented on earlier in relation to integrated coastal management)-influencing the location of residential, industrial and public development areas tominimise conflicts. This is to be achieved by identifying coastal areas in which thoseactivities would be acceptable. The integrated coastal management plan alsoenvisages a clear boundary to the main residential and public areas, to preventribbon developments along the coastline leading out of the main public settlements.The current land use management policy requires a review of its mechanism fordevelopment control. The current system is weak, with the type of developmentlargely determined by Government which normally avoids environmental impactassessment procedures on its own projects but strictly enforces development controlprocedures against the private, non-governmental and other community projects.There are some licensing procedures, such as those linked to health considerations,but overall they do not constitute a strong and coherent framework for regulatingcoastal area uses. In particular, a coastal area use policy would require licensingagencies to turn down applications for developments that may meet normal operatingrequirements but which are in the wrong land use zone. Presently, the local territorialauthority with land planning functions fall under the Island Councils whose authoritiesare restricted to government-leased lands only and have no jurisdiction over privateor village lands.

Te ManninWa Group Pty Ltd xviiEnvironmental Planning & Management Specialists


The Climate Change Adaptation (CCA) Strategy recommended the establishment at

practical level coordinating committees by the appropriate ministries, to be tasked for

coordination of planning, administrative and regulatory activity. The Foreshore

Management Committee of the Ministry of Environment, Lands and Agricultural

Development (MELAD), with inter-ministry membership, is expected to assist MELAD

to discharge its environmental regulatory and permitting functions relating to coastal

development use and foreshore structures. In general, however, the regulatory

functions of MELAD and inter-agency/ministry coordination is lacking with land use

planning and environmental screening frequently bypassed by ministries themselves.

This means that the broad policy framework of the CCA Strategy cannot be

effectively implemented unless plans are put in place to introduce dramatic changes

in the legislative approach to an integrated coastal land use and management plan.

Even if existing development licensing arrangements could be used more

strenuously, there would have to be strong coordination between the Chief Executive

Officers of all ministries and agencies with the Director of Environment and

Conservation of MELAD in order to coordinate their actions to achieve the basic

intent of the policy proposed in the CCA Strategy. Such coordination will benefit from

regulatory changes to fully support an integrated coastal zone management plan.

21. Impact Assessment Needs

All the Climate Change Adaptation (CCA) proposals would need closer scrutiny for

their environmental implications, as stipulated under the Environment Act 1999

despite the efforts made in the ranking of adaptation options (see Appendix A), to

weigh up the benefits and disadvantages of the various climate change adaptation

options.

The proposal to improve sanitation and waste management and to augment quality

freshwater supplies to most affected communities would require serious scrutiny and

the various options considered in terms of their economic, technical and

environmental feasibility. The technical capacity for managers to maintain the waste

management system and local operators to sustain and operate the high

management and technology equipments of the plants are major considerations, but

so is the location of the projects to prevent contamination, through leachates, and

severe drawdown on the underground water sources that may severely affect human

life and plant and vegetation growth.

The proposed foreshore developments: seawall construction, sandmining and

dredging, causeway construction, reef blasting and road construction would also

need careful consideration individually. The potential adverse effects of these

individual projects for the marine environment, together with possible amenity

implications, should be examined through project-level EIA.

A social impact assessment might be considered for the general set of proposals that

would alter the physical and social nature of Kiribati Islands. The change in location

of coastal dwellings (being set back from the beach area, now with a protective

seawall), the concentration of Government offices on Outer Islands, the breaking up

of family and community units for resettlement purposes and the concept of zoning

land for development. The nature and extent of the cumulative effects of these

proposals may not be anticipated by the local community and a social impact

assessment would be a useful vehicle to address any concerns that might be evident

before the proposals go any further.

While not strictly an impact assessment, a study would be required to prepare a

series of Codes of Environmental Practice (CEP) for the Government of Kiribati use

during the planning, design, construction, and operation as well as maintenance of all

infrastructure projects and coastal works in Kiribati. The codes would ensure that

Te ManninWa Group Pty Ltd xviii


GOVERNMENT OF THE REPUBLIC OF KIRIBATI

KIRIBATI ADAPTATION PROGRAMME

PILOT INVESTMENT PHASE (KAP 11)

LANDS ACQUISITION AND RESETTLEMENT

POLICY FRAMEWORK

RONITI TEIWAKI

August 2005

I

Acknowledgement

The Report has been produced with the cooperation and assistance of the GOK

and the World Bank.

I am grateful to the Permanent Secretaries for the MELAD (Tukabu Teroroko)

and the MISA (Karibaiti Taoaba) for their approval in accessing relevant

documents in their Offices during the course of data collection.

I am also grateful to the Director of Lands Management for his advice on land

matters and making available important land documents, including the Kiribati

Information Lands System. The assistance of the Senior Assistant Secretary

MELAD (Tebao Tanieru) is much appreciated.

The kind assistance of the Parliamentary Counsel in providing relevant law books

is really appreciated.

The advice of the unimane, the Tokatarawa Association and the Teinainano

Urban Council are gratefully acknowledged.

My sincere appreciation to Bruce Harris of the World Bank for his useful advice

and editorial assistance.

2

Acronyms and I-Kiribati Terms

CLPB Central Land Planning Board

DLUP Detailed Land Use Plan

EA Environment Assessment

ECD Environment and Conservation Division

GEF Global Environmental Facility

GLUP General Land Use Plan

GOK Government of Kiribati

IPO Island Planning Officer

KLIS Kiribati Lands Information System

LARPF Land Acquisition Resettlement Policy FrameworkLLPB Local Land Planning Board

LMD Lands Management Division

Maneaba traditional meeting hall

MFED Ministry Finance & Economic Development

MELAD Ministry Environment Lands & Agricultural DevelopmentMISA Ministry of Internal and Social AffairsMPWU Ministry of Public Works and Utilities

NASC National Adaptation Steering Committee

NDP National Disaster Plan

PAPs Project Affected Persons

PUB Public Utilities Board

RAP Resettlement Action Plan

Unimwane traditional elders

UNDP United Nations Development Programme

Figures

Figure 1 The Processes Integrating the KAP into the Kiribati National StrategicPlan 2004-2007

3

Contents

Acknowledgement 2

Acronyms and Abbreviations 3

Figures 3

Contents 4

1. The Project 5

2. Resettlement Principles and Objectives 8

3. Preparation of Resettlement Plan 9

4. Resettlement Funding Arrangements 13

5. Criteria for Eligibility 14

6. Legal Framework 15

7. Voluntary Land Agreements 20

8. Valuation of Affected Assets 24

9. Organisational Procedures 25

10. Proposed Processes in Planning and Implementation 28

11. Grievance Redress Mechanism 31

12. PAP's Participation in Project 32

13. Monitoring 33

14. Conclusion and Recommendations 34

References 37

Annexes

Annex 1: Sample of Lease Agreement 38-39

Annex 2: Schedule of Rates of Compensation 40-41

Annex 3: Outline of Abbreviated Resettlement Action Plan 42

Annex 4: Methodology 43-46

Annex 5: Terms of Reference 47-50

4

1. THE KIRIBATI ADAPTATION PROJECT

This section provides a brief description of the Kiribati Adaptation Project (KAP) andthe rationale for a Lands Acquisition and Resettlement Policy Framework (LARF).

1.1 Description

The Kiribati Adaptation Project was formulated in response to the grave concern ofthe Government of Kiribati and of the international community about how Kiribati willmitigate the potentially negative impacts of it's vulnerability to climate change,climate variability and sea level rise. The GOK is developing the Kiribati AdaptationProgramme to mainstream adaptation into national development planning with thesupport of the World Bank, the Global Environmental Facility, the Japan PHRDClimate Change Fund, and the United Nations Development Programme.

The KAP comprises three phases: The Preparation Phase, the Pilot ImplementationPhase, and the Expansion Phase.

1.2 The Preparation Phase

In 2003, the Preparation Phase of the Kiribati Adaptation Project (KAP-1) wasinitiated under a World Bank-administered US$646,000 grant funded by the JapanSpecial Climate Change Fund. The KAP-1 design was informed by the extensiveanalysis of the 2000 Regional Economic Report, as well as by the results of tworegional High Level Adaptation Consultations conducted in Fiji in 2002-03. Theseconsultations concluded that adaptation, to be effective, needs to be mainstreamedinto national development plans, policies and budgets, and treated as a majoreconomic and social risk, rather than just an environmental issue.

KAP-1 (2003-05) is being coordinated with a GEF National Adaptation Programme ofAction (NAPA) grant through UNDP. The project has been closely linked with thepreparation of the 2004-07 National Development Strategy and Ministries' 2-3 yearsOperational Plans through the following process:

5

First National Communications (1999) and

National Communications Strategy(2003)

First National Consultation:Assessment of Island Vulnerabilities

(Completed)

Second National Consultation:Prioritization of Coping Strategies

(Completed)

Integration of Adaptation into 2004-07National Development Strategy

(Completed)

7echnical, Social and Economic Analysis ofmainstream adpatAdoptation Options

(on-going)

Adaptaton Progamme oAction(NAPA) Andapdesign priosreaitypio inve instmetsfryh

Operational Plans6 (on-going)

lo Completion of National Adaptation Programmeof Action (NAPA)

(plOhned)

The objectives of the Preparation Phase - now drawing to a close - are to

mainstream adaptation into national economic planning, prepare a National

Adaptation Programme of Action (NAPA) and design priority pilot investments for the

next Pilot Implementation Phase.

6

1.3 The Pilot Implementation Phase

The Pilot Implementation Phase is under preparation, and it aims to consolidate themainstreaming of adaptation into national economic planning. This phase of theproject will run from 2005-08 and is expected to include the following components:

* Priority National Adaptation Investment, funding priority adaptation measuresmainstreamed into the MOPs of key sectoral Ministries.

* Pilot Island Adaptation, funding pilot community-based adaptationinvestments in two pilot islands according to a whole-island approach. Thepilot islands would be selected based on chances of success and replicability,representativeness, and degree of vulnerability, amongst other criteria.

* National Consultation and Mainstreaming, funding periodic nationalconsultations, awareness, and consultation in islands targeted for theexpansion phase, and continued mainstreaming into national economicplanning.

* Program Management and Capacity Building, funding training, prioritystudies, and project management.

It is likely that some of the activities involved in the implementation of MOPs and/orPilot Island Adaptations will require land acquisition and/or resettlement. The PilotIsland Adaptation activities will be funded under a Community Adaptation Grantfacility. Since neither the Pilot Island Adaptation activities nor specific activitiesunder the MOPs to be funded by Bank assistance will be fully identified anddesigned until KAP II is already under implementation, it is necessary to devise aLand Acquisition and Resettlement Framework to establish procedures to befollowed in the event land acquisition and/or resettlement of people is necessitatedby the impacts of climate change and/or activities of the project. This LARF is a keydocument for both the pilot phase and for expansion of KAP nationally, which will beeffected under KAPIII.

1.4 Expansion Phase

KAP-II would be followed by a long-term expansion phase (KAP-III), expected toexpand adaptation investments piloted during KAP-II to the whole of Kiribati.

1.5 The Rationale for a Lands Acquisition and Resettlement PolicyFramework

Following the National Consultations, the CCST has identified 10 priority areas forKiribati: awareness, water resources, inundation/coastal erosion, health impacts,agriculture, family planning, fisheries, waste management, overcrowding, andmiscellaneous other options. Implementation of subprojects in these areas in thepilot islands may require land acquisition and the consequent resettlement ofaffected people. This framework identifies the principles to be followed in the eventof land acquisition, resettlement, and compensation based on Kiribati's legislation,and the Bank's policy on involuntary resettlement.

7

2. RESETTLEMENT PRINCIPLES AND OBJECTIVES

The Bank's and the GOK principles and objectives of resettlement preparation andimplementation are discussed in this section.

2.1 Resettlement Principles and Objectives

The purpose of the Resettlement Policy Framework is to provide guidance for theprocess and intended outcomes of resettlement plans and activities to be applied to

subprojects during subproject implementation. The overall principle of theResettlement Policy Framework is to ensure that those people whose livelihoods orassets are directly affected by the adverse impacts of climate change and /or projectactivities realize benefits as a result of project implementation and that all steps aretaken to minimize negative impacts on them.

The objectives of the resettlement framework provide guidelines to stakeholdersparticipating in the mitigation of adverse social impacts of the project.

Involuntary resettlement can cause long-term hardship, impoverishment, and

environmental damage unless appropriate measures are carefully planned andcarried out. For these reasons, the overall objectives of the approach to resettlementand land acquisition under the Project are as follows:

(a) Involuntary resettlement should be avoided where feasible, or minimized,exploring all viable alternative project designs.

(b) Where it is not feasible to avoid resettlement, resettlement activities should be

conceived and executed as sustainable development programs, providing sufficientinvestment resources to enable the persons displaced by the adverse impacts of

climate change and/or project activities to share in project benefits. Displacedpersons should be meaningfully consulted and should have opportunities to

participate in planning and implementing resettlement programs.

(c) Displaced persons should be assisted in their efforts to improve their livelihoodsand standards of living or at least to restore them, in real terms, to pre-displacementlevels or to levels prevailing prior to the beginning of project implementation,whichever is higher.

It is noted that the Bank's Involuntary Resettlement Policy (OP4.12) defines theaffected people as those people who are directly affected socially and economicallyby the Bank-assisted investment projects.

The objectives of the proposed Resettlement Policy Framework are consistent withthe Bank's policies as well as meeting the objectives of the national climate changeadaptation policies and strategies. The focus of this project is in regard to theresettlement/rehabilitation of the vulnerable communities to climate change andrising sea levels.

8

3. PREPARATION OF RESETTLEMENT PLANS

The proposed process for preparing and approving resettlement plans is based onthe existing GOK policies and practice, and the provisions and guidelines of theBank's OP and BP 4.12.

3.1 The GOK Policy and Strategy

The MELAD (Ministry of Environment, Lands and Agricultural Development) is thelead agency responsible for co-ordinating planning and implementation of landsacquisition and resettlement. The Ministry formulates and manages the resettlementbudget and pays compensation to the affected people after the Lands ManagementDivision (LMD) has carried out a survey of the assets and trees on the site.The LMD is also responsible for surveying the house sites. The MELAD provides thesecretariat for the Resettlement Committee.

At the time of writing the GOK was in the process of revising its resettlement policy toachieve more manageable population distribution in the country. This revised policywould look more into urban overpopulation on South Tarawa resettling people fromthe Gilbert Group to the Line and Phoenix Groups.

It was also noted that there was a need to address resettlement outside Kiribati tofurther address adverse impacts of climate change. This subject matter is notcovered in this Report.

3.2 The GOK Resettlement Committee

The Resettlement Committee was established by the GOK to deal with theresettlement of Tabuaeran, Teraina and Kiritimati islands. The Committee isresponsible for developing guidelines, eligibility criteria, plans, strategies andpriorities for the GOK resettlement schemes. The Committee is therefore involved inthe planning and implementation of resettlement schemes.The Committee makes recommendations to the Cabinet for consideration andapproval.

The Committee is a high-level body consisting of the main GOK stakeholders underthe chairmanship of the Minister of Environment Lands and AgriculturalDevelopment. The members include the Minister and Permanent Secretary of theMinistry for Line and Phoenix Development (MLPD), Permanent Secretary MELAD,Permanent Secretary Ministry of Internal and Social Affairs, Director of LandsManagement, Director of Environment and Conservation Division, Director ofMinistry of Education, Youth and Sport, an Economist from the Ministry of Financeand Economic Development, Chief Health Inspector, Chief Councillor (Betio TownCouncil), and the Chief Councillor (TUC).

The existing Resettlement Committee has the experience and the capability to dealwith general resettlement issues, and it can also adequately handle any proposedlands acquisition and resettlement for the KAP. The resettlement plan for the

9

Resettlement Committee is drawn as a joint effort by the principal GOK stakeholders,including the Lands Management Division and the Environmental and Conservation

Division of the MELAD.

The MELAD has the expertise to draw up resettlement plans in line with the Bank's

RAP procedures, and it is recommended that the MELAD, in conjunction with the

other GOK key stakeholders, and the respective Island Councils and communities, is

given responsibility in drawing up either the RAPs or the settlement plans for each

island community. The participation of island community representatives is crucial

both in the planning and implementation stages of these resettlement plans.

3.3 The World Bank's OP 4.12

According to the Bank's OP 4.12, the resettlement plan or resettlement policy

framework will include measures to ensure that the displaced (project affected)

persons arei) Informed about their options and rights pertaining to resettlement;

ii) Consulted on, offered choices among, and provided with technically and

economically feasible resettlement alternatives; andiii) Provided prompt and effective compensation at full replacement cost for

losses of assets attributable directly to the project.

The critical steps in the planning and implementation process include targeting and

information dissemination, subproject formulation, survey and appraisal, approval,

implementation, and monitoring and evaluation (OP 4.12).

The following discussion covers the process for a full RAP. At the conclusion a brief

explanation of the difference between a full and an abbreviated RAP is presented.

3.4 Targeting and Information Dissemination

Targeting and provision of information are critical to attaining the overall goals of the

Project with particular reference to the project clientele. The objective is to

disseminate information about the project to the potential PAPs. On those islands

where it is planned that subprojects will be implemented, an initial meeting should be

held before any subprojects are prepared in which Island residents meet together at

the Island Council maneaba. The purpose of this meeting will be to:* Provide an overall explanation of the project and its objectives;* Discuss the possible impacts with respect to land acquisition and

resettlement;* Explain that all land will be acquired voluntarily, the general nature of

compensation and resettlement assistance to be provided, and themechanisms for filing and assessing grievances for activities under the

project;o Explain the general process for preparing and submitting proposals

for subprojects. The details of this process are discussed in theOperational Manual.

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3.5 Subproject Preparation and Screening

On each island the Island Project Officer will be the key official who will work withvillages and groups within villages to prepare subproject proposals under the project.Subproject proposals should be, to the extent possible, the result of discussion andconsensus at the village level leading to a proposal that has the general support ofmost of the village population. Traditional decision making processes will beimportant in this process, though the IPO will need to emphasize the importance offull participation of all groups in the village in this process.

Once villages decide on a subproject proposal and the proposal is prepared in a formthat can be submitted for evaluation, the proposal will be passed on to the IslandDevelopment Committee. The process of evaluation by the IDC is discussed indetail in the Operational Manual. As a part of this process, for each subprojectidentified for possible funding under KAPII a screening process should be carried outto identify the impact of the subproject with respect to land acquisition, resettlement,livelihood interruption or other impacts on livelihood and/or assets that will trigger theresettlement policy framework. Where impacts on the project affected people areminor - that is, where no people are displaced and less than 10% of their productiveassets are affected - or where fewer than 200 people are displaced, an AbbreviatedResettlement Action Plan may be agreed with the borrower. It is expected that mostsubprojects under KAP II will require Abbreviated Resettlement Action Plans. Wherethis is not the case, a full Resettlement Action Plan must be agreed andimplemented.

3.6 Consultations

Consultations with the local residents will be an ongoing feature of the process ofsubproject formulation, submission, approval, implementation and monitoring.

Consultations with potential PAPs will be an important part of this process. Suchconsultations will begin with the information and awareness meetings that take placebefore any subproject proposals are prepared, and continue through the life of theproject. The people must be informed about their options and rights pertaining toresettlement, consulted on, offered choices among, and provided with technicallyand economically feasible resettlement alternatives, and provided promptcompensation at full replacement for loss of assets because of the project (OP 4.12para.6a). A consultation framework will be developed for each subproject that willoutline exactly how the process of discussion and negotiation will take place with thePAPs.

3.7 Reconnaissance Survey

As a part of the preparation of subproject proposals, a survey will be conducted toidentify the likely impact of the subproject with respect to land acquisition andresettlement. This survey will be carried out under the direction of the IPO on eachisland for each subproject. The results of this survey will be included in thesubproject proposal submission provided to the Island Development Council. Theproposal submission will need to include the following information:

j ~~~~~~~~~~~~~~~~~11

1. For any voluntary contributions of individual land without compensation, aconsent form which includes the name of the land donor/s, and details of thecontribution (type, size, location, specified period of use etc. as appropriate). Thisshould be signed (or thumb-printed) by the land donor/s (including the male andfemale heads of the household involved), and the chairperson of the Council ofUnimwane.

2. For land contributions against compensation, a consent form which includes thename of the land donor/s, details of the contribution (type, size, location,specified period of use etc. as appropriate), and details of the agreedcompensation arrangements. This should be signed by the land donor/s(including the male and female household heads), a nominated representative ofthe group making the subproject proposal, and the chairperson of the council ofelders (the unimane). A sample consent form, modeled on the GOK LeaseAgreement, is shown in Annex 1.

3. Where the land donated is communal land, these forms can be signed on behalfof the village by a recognized village leader.

For sub-projects where land is donated or provided against compensation, the IslandDevelopment Council will take the following steps during its appraisal of proposedsub-projects:

i) verify with the land donor/s that the donation is indeed made on a voluntarybasis, that the donor/s is/are the legitimate owner/user of such lands, and thatthe land donor/s is/are fully informed of the nature of the sub-project and theimplications of donating the property;

ii) Assess that the land donor does not suffer a substantial loss affecting his/hereconomic viability as a result of the arrangement. Where there is substantialloss the sub-project cannot be approved as proposed (the amount donatedshould usually not exceed 10% of his/her land or assets without appropriatecompensation);

iii) Assess that the compensation arrangements are appropriate. Thecompensation should be roughly equivalent to traditional compensationarrangements. Where demands are excessive, compensation inappropriateand/or the land donor and the community cannot agree, the IPO and/orCommunity Facilitators will encourage alternative sites or arrangements. Thesub-project will not be approved for funding by a Small Grant until suitablealternative sites are identified and land has been voluntarily made availablethrough the process described above. If no suitable land is made availablethrough the Voluntary Land Contribution process, the sub-project would notbe further processed.

3.8 Disclosure of the RAP to the Affected People

A public meeting will be held in each affected village to inform the affected peopleabout the resettlement and compensation issues.Once a Resettlement Action Plan is completed, a public meeting will be held todisclose the exact contents of the RAP to the affected people.

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3.9 Sign Compensation Contract and Pay Compensation

The final step of resettlement implementation is agreement of all parties to thecompensation and related arrangements, and payment of compensation, ifnecessary. Alternative forms of compensation, such as allocation of land andemployment opportunities, will also be explored.

3.10 Source of Funding

The project will be responsible for funding all resettlement and land acquisitionrelated expenses. Funding arrangements are discussed in more detail in section 4.

3.11 Grievance Redress Mechanism

The mechanisms for redressing grievances will also be presented and explained tothe PAPs in a public meeting. PAPs will be given opportunities to review the surveyresults and compensation policies during the resettlement planning andimplementation. The first step in any grievance procedure will be negotiation at thevillage level between the affected persons and island representatives, particularlywith the IPO and, through the IPO, with the Island Council. If this does not lead to asatisfactory arrangement, the grievance will be forwarded to the Project ManagementOffice for adjudication. If this does not result in agreement the PAP shall have theright to pursue the grievance through the court system.

3.12 Monitoring

It is the responsibility of the GOK to make an assessment to determine that theobjectives of the resettlement instrument has been achieved. The Bank requires thatboth an internal and external monitoring of the project's progress be undertaken.The details of the monitoring processes are discussed in Section 12.

4. RESETTLEMENT FUNDING ARRANGEMENTS

This section describes the arrangements for funding resettlement, including thepreparation and review of cost estimates, the flow of funds, and any contingencyarrangements. The full costs of resettlement activities necessary to achieve theobjectives of the project are included in the total costs of the project. The detail costestimates will be based on a comprehensive inventory survey of different impacts,and actual cost for all types of compensation.

4.1 The Resettlement Budget.The resettlement budget is to include cost estimates for the planning andimplementation phases, and provision for a contingency fund.

Effort should be made in developing realistic cost estimates for the resettlementprogramme. The detailed cost estimates will be based on comprehensive inventorysurvey of different impacts, and actual costs for various types of compensation.

The budget must also provide for other related costs during the implementation13

phase, such as survey and resettlement planning, resettlement monitoring andevaluation, and overall administration.

The provision for a contingency fund of no less than ten percent of total resettlementcost will be set aside for covering cost changes due to inflation or unexpectedsituations should occur during the implementation.

4.2 Sources of Funding

The GOK will be responsible for providing the necessary funds for the planning andimplementation of the resettlement operation as a part of the overall project funding.

The necessary financial provision has to be presented as part of the budget by theresponsible Ministry to the Maneaba Ni Maungatabu, the Kiribati NationalParliament.

4.3 Flow of Funds

The funds earmarked for the project will all be directed into the Consolidated Fund,and will be disbursed in accordance with financial regulations, budgetary andadministrative procedures to the responsible Ministries and Divisions for finalpayment to the payees.

The documentation and receipting of these public funds will be the responsibility ofrespective government agencies. Thus, the money for the compensation will be paidto the MELAD after the Ministry has submitted compensation claims to theAccounting Division of the MEFED.

The responsible officer in the Accounting Division will check that the payment is inorder and that there is budgetary provision for such expenditure item in the currentGOK Budget. Once the MELAD payment voucher (PV) has been checked andapproved by the Accounting Division, the disbursement of the necessary funds forcompensation is made to the MELAD. The Accounting Division of the MELAD thenpays the compensation to the affected persons, who sign duplicate copies of thePVs. The payee retains the duplicate copy of the PV, and the original copy goesback to the Accounting Division of the MFED.

These arrangements are already in place as a part of the resettlement processfollowed by the GOK in the resettlement of the eastern islands. Therefore, the GOKhas a financial framework in place for the sourcing and management of the Projectfunds in relation to resettlement and land acquisition.

5. CRITERIA FOR ELIGIBILITY

This section explains the Bank's guidelines on the eligibility criteria, and those of theGOK's policy on the issue.

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5.1 The Bank's Policies (OP 4.12)

The Bank stresses the need for a census to be carried out to identify the personswho will be affected by the project and to determine who will be eligible forassistance. The date of the census will be the cut off date for eligibility for benefitsunder the resettlement plan. Anyone who moves into an area affected by thesubproject after the census date will not be eligible for benefits. The PAPs shouldreceive compensation for loss of all productive assets, including, but not limited to,land, buildings, trees, crops and related assets. (OP 4.12, para.15-16).

5.2 The GOK Policy

The GOK pursue policies, which are consistent with the Bank's directives outlinedabove. The project's Administering Authority normally carries out a census toidentify the PAPs and the extent of their compensation claims.

The procedures for establishing the eligibility criteria are done in consultation with thePAPs and the local authorities, particularly the Island Councils. The Island Councilsinclude representatives of non-government organizations on the islands, includingthe women, the Church, the youth and traditional elders (unimwane).

5.3 Eligibility Criteria for KAP

Following the national consultations, the CCST identified priority areas under theKAP: public awareness, water resources, inundation/coastal erosion, health impacts,agriculture, family planning, fisheries, waste management and overcrowding. Usingthese areas as guidelines, the individual Island Council, in consultation with thevillages, will determine its own criteria for eligibility under the KAP. The ultimateobjective of the exercise is to improve the situation of the vulnerable communities. Afull explanation of the eligibility criteria is presented in the Operational Manual.

5.4 Promoting Advancement for Vulnerable Communities

The Bank advocates exploring all viable alternative project designs to avoid, wherefeasible, or minimize displacement (BP 4.12). The rehabilitation and promotion ofquality life in these vulnerable communities in their existing localities is the preferredoption to pursue.

The most vulnerable areas require better land use planning, and a layout plan for thesettlements properly mapped out with provision of sites and services willconsiderably improve community life. Security of tenure for the tenants maynecessitate drawing up of suitable forms of voluntary land agreements, such as thelease and sub-lease agreements, with landowners.These land arrangements must comply with existing legal requirements.

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6. LEGAL FRAMEWORK

This section reviews existing legislation in Kiribati on land acquisition andresettlement related issues, examines current Bank policy requirements, andproposals for bridging any discrepancies between them.

6.1 Kiribati Constitution

Section 8 of the Kiribati Constitution provides that no property of any description shallbe compulsorily acquired unless such acquisition is necessary in the interests ofdefence, public safety, public order, public morality, public health, town or countryplanning or the development or use of any property for a public purpose. Anyacquisition of private land must be adequately compensated within a reasonabletime.

The Constitution also provides that any disagreement over the amount ofcompensation shall be resolved in the High Court.

6.2 National Disaster Act 1993

The objective of the Act is to provide for the organization and management neededto ensure mitigation of, preparedness for, response to and recovery from disasters inKiribati. "Disaster" is defined in the Act as the actual or imminent occurrence of anevent which endangers the safety or health of any community or persons in Kiribati,or which threatens to destroy any property in Kiribati, arising from natural andartificial causes.

Under the current allocation of ministerial responsibilities, the Office of the Beretitentiis responsible for disaster management. The National Disaster Council, whosemembers are appointed by the Beretitenti, provides advice to the Beretitenti.The Council must also prepare a National Disaster Plan to be approved by theCabinet. Section 9 provides that there shall be a National Disaster ManagementOffice to carry out disaster management and to deal with routine disaster-relatedmatters.

The local governments are also required to establish their own respective DisasterCommittees.

Section 21 of the Act provides for the payment of compensation and remunerationfor any action taken under the National Disaster Plan.

The Act also stipulates that funds or aid-in-kind received towards the disaster mustbe used specifically for those purposes, unless the government and the donor agreefor use of the funds for other purposes.

6.3 State Acquisition of Lands (Cap 95B)

The involuntary acquisition of land for resettlement/rehabilitation must be done inaccordance with the provisions of the Constitution and the State Acquisition of LandsOrdinance.

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The Minister of Environment, Lands and Agricultural Development is required toserve a notice of intention to acquire the land to the landowners and all otherpersons with interests in the land six months before the acquisition takes place.

The Ordinance lays down specific guidelines to the Court when assessingcompensation. The market value of the land must be taken into account; thedamage sustained by the landowner by reason of loss of trees or other crops; anydamage to the landowner's property or earnings caused by reason of having to movefrom the land; and the expense to the landowner of moving his home or businessfrom the acquired land.

The compensation should be made by the GOK, and the amount of compensationmust be agreed between the two parties. If there is no agreement between theparties, any party may refer the matter to the High Court for determination.

6.4 The State Lands Act 2001

The Act provides that a contract is made between the State and the registeredlandholder of State land given to the landholder and his family for settlementpurposes. The family is defined as consisting of the landholder, spouse, theirchildren, grandchildren and the couples' parents. The land can only be transferredwithin the family. The Act stipulates that the settlement should be conceived andexecuted as a sustainable development programme. The Act prohibits the sale ofthe land, and the land can be taken away from the family if it is abandoned for aperiod of six months. The State has a right of reversion on the land and discretion tore-allocate the plot to another family.

The State Lands Act does not affect lands registered under the Native Lands (Cap61).

6.5 Native Lands (Cap 61)

The Native Lands (Cap 61) contain the Lands Code and important provisions on thealienation of native land, including leases, sub-leases and sale.

6.6 Restriction on Alienation of Non-Native Lands Cap 63

The Ordinance restricts the alienation of non-native land, either by sale or lease.The GOK must be given first refusal to possess the land, which may be compulsorilyacquired, if necessary.

6.7 Lands Registration (Nikunau) Validation Act 1992

The Act provides for the appointment of a Commission to compile a replacementlands register for the island of Nikunau. The Commission would base its work onminutes of the Nikunau Lands Magistrate Court, the High Court and outcomes ofconsultations with the village people in their village maneaba, and submissions fromthe general public.

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On completion of the Commission's work, the findings would be published for publicinspection and objections. Thereafter, the new Nikunau Lands Register becomesindefeasible. The Nikunau Lands Magistrate's Court is empowered under the Act tomake the necessary amendments and corrections.

Each island has its own Lands Register which identifies the land plots and theregistered owners and interested parties of the said plots on the whole island. Eachisland has its own Magistrate Lands Court to deal specifically with land matters forthe island.

6.8 Land Registration (South Tarawa) Validation Act 1997

The Land Registration (South Tarawa) Validation Act 1997 gives legality to theprocess of compiling a new list of registered landowners in South Tarawa, the areathat extends from Bairiki village to Tanaea islet.

The South Tarawa Lands Register is important in the identification of registeredlandowners, the site location and size of the land plots likely to be used forresettlement.

6.9 Rent Review (Cap 90)

The Rent Review Ordinance (Cap 90) provides the procedures for the determinationof land rentals in respect of leased lands.

6.10 Foreshore and Reclamation (Cap 35)

The Foreshore and Reclamation Ordinance deals with the ownership of theforeshore and provides for the carrying out of reclamation schemes. Under this law,the foreshore belongs to the Government, subject to the public right of passing overit and any private rights over it. The Minister of MELAD may designate certain partsof the foreshore so that no coral, sand or mud can be taken without getting a licencefrom the Director of Lands.

The law also provides that any reclamation work must be approved by the Minister,subject to a public notice being issued in relation to the work so that affectedinterests may submit their concerns of the proposed work to the Minister.

The protection of the foreshore by the construction of seawalls, embankments orsimilar structures, and the reclamation of the foreshore for resettlement purposes aresubjected to the Foreshore and Reclamation Ordinance.

6.11 Land Planning (Cap 48)

The Land Planning Ordinance (Cap 48) deals with areas designated by the Minister.The Ordinance provides for a Central Land Planning Board and a local land planningBoard of members appointed by the Minister. The CLPB draws a General Land UsePlan for the designated area. The procedures for drawing up the GLUP are providedfor in the Ordinance, and require extensive public consultation and scrutiny.

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Once the GLUP has been approved by the CLBP, the GLUP is submitted to theLocal Land Planning Board (LLPB). The Teinainano Urban Council (TUC) is theLLPB for South Tarawa, and is required to make a Detailed Land Use Plan (DLUP).The DLUP is subject to public scrutiny for a fixed period before it goes back to theCLPB. The CLPB may then approve the draft plan with or without amendmentbefore it becomes the DLUP for the designated area.

Part IV of the Ordinance deals with Development Planning and the procedure forobtaining planning permission. "Development" is defined as the carrying out of anybuilding or works on the land. Such development must be considered and approvedby the Local Board before it is carried out. An application must be accompanied byplans or drawings indicating the site and description of the proposed development.A resettlement scheme will fall under the residential land use classification.

Any person unhappy with a decision of the Local Board may appeal to the CentralBoard. The ultimate appellate body on planning issues is the High Court.

6.12 Local Government Act 1984 and the relevant by-laws

Island Councils are established under the Local Government Act 1984, and are givenprescribed powers and duties, most of which relate to the resettlement planning andimplementation. The Island Councils consist of elected councilors from each villageor wards and representatives of women groups, youth groups and unimaneassociations on the island.

The Island Councils have also been closely involved in previous resettlement.schemes, namely the rehabilitation of Council selected emigrants from the relativelyovercrowded islands in the Gilbert Islands group to the sparsely populated islands ofTabuaeran and Teraina in the Line Islands group.

All Island Councils are essential components of the institutional framework of KAP atthe island level. They have been active participants in the consultation process, andtheir direct involvement will be retained during the life of the project.

6.13 Environment Act 1999 and Regulations

The provisions of the Environment Act are relevant to the land acquisition andresettlement issues. The general environmental principles of sustainabledevelopment (6.1b), the environmental management and conservation of biologicaldiversity (6.2b), development control (13-17), review assessment (26-27) andmonitoring (28) are provided for in the Act.

The Environment Act also provides for a Schedule of prescribed developments(13.1) to comply with a comprehensive system of development activity using thetechnique of environmental impact assessment.

6.14 Housing Corporation (Cap 40A)

The Kiribati Housing Corporation (KHC) was established as a corporate body in1979. The functions of the KHC include the operation of Housing Loan Scheme,

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assistance in providing the housing needs for government employees, the provisionof assistance for other persons to undertake and carry out housing schemes inKiribati. The law defines housing scheme as a proposal for the construction ofseveral houses, laying out of roads, provision of drainage and other public services,open spaces and amenities.

The KHC should be an active participant in the planning and implementation of anyhousing scheme for the displaced people.

6.15 Public Finance (Control and Audit) (Cap 79)

The Public Finance (Control and Audit) (Cap 79) provides a legal framework for themanagement and auditing of public funds and other funds appropriated for theplanning and implementation of the acquisition/resettlement operations.

6.16 Public Health and Regulations (Cap 80)

The provision of public health services and compliance with public health regulationsare essential to the future sustainability of any resettlement. The Public HealthRegulations 1926 requires good sanitation, cleanliness, proper waste managementand provision of good potable drinking water. These requirements are not alwaysenforced, and life quality of resettled communities needs closer public health scrutinyand improvement.

6.17 Public Utilities (Cap. 83)

The Ordinance provides for the establishment of a Public Utilities Board (PUB) andcharged with the responsibility of providing electricity, water and disposal of sewage.The provision of these essential services in the planning and implementation ofresettlement areas is crucial to the development and enhancement of community life.

6.18 Conclusion

Kiribati has the necessary Constitutional and legal framework in place to satisfy theBank's requirements. The Kiribati Constitution and laws are quite explicit on thecompensation for the acquisition of private land needed in the public interest, namelythe rehabilitation of I-Kiribati adversely affected by the project. Affected people haveseveral avenues of recourse on compensation and resettlement arrangements,including final appeal to the court system and the High Court.

7. VOLUNTARY LANDS AGREEMENTS

The common forms of voluntary land use agreements in Kiribati, which are likely tobe applied in KAPII, are the leases, sub-leases, licenses, house plots, renting, landpurchase, land exchanges and gifts of land.

7.1 Lease Agreement

A lease is an agreement whereby the landowner (lessor) agrees to allow all or part of

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his/her land to be used by some other person (lessee) in return for an agreedamount of money in the form of rent.

A lease agreement shall be valid if it is done in accordance with the provisions of theLands Code. The nature of lease agreements varies from agreement to agreementdepending on the nature of the parties involved in the lease agreement.

7.2 Types of Leases

The Native Lands Cap 61 distinguishes between a Native and a Non-Native Lease.

7.2.1 Native Lease

A Native Lease is a lease of native land to another native where the term of the leasemust not exceed 21 years and the size of leased land not more than 5 acres.

A Native is defined in the Ordinance an aboriginal inhabitant of the Gilbert Islands ora descendant of an aboriginal inhabitant. A native lease agreement must besubmitted to the Magistrate Lands Court before it is approved.

The Magistrate Lands Court shall only approve the lease agreement if the Court issatisfied that the land is the registered property of the lessor, and the terms of theagreement are fair to both parties. The Court must also ensure that the lessor hassufficient land remaining to support himself and his family.

A Native Lease is usually registered in the Register of Native Leases, which is keptby the Court. There is a Magistrate Lands Court and Register of Native Leases foreach of the main Kiribati islands.

7.2.2 Non-Native Lease

A Non-Native Lease is any other agreement other than a Native Lease. Non-Nativeleases include a lease to a native for longer than 21 years and a lease to a non-native for any period of time.

Before a Non-Native lease is formally approved by the Magistrates Lands Court, theCourt must be satisfied that the lessor is the registered landowner, and that thelessee is allowed to lease the land in accordance with the provisions of the LandsCode.

Once the Court has approved the Non-Native Lease Agreement, the LeaseAgreement must have the statutory endorsement of the Minister responsible for theLands. The Minister must satisfy himself that the terms of the Non-Native Leaseare fair to both parties, that the lease is in the correct form, and the lease fees havebeen paid. Compliance with these requirements ensures that lease is registered in aRegister of Non-Native Leases.

The Register of Non-Native Leases includes government leases, Church leases, andCouncil leases. Government leases include most of the lands in Betio, Bairiki,Bikenibeu, Bonriki and Buota (all on South Tarawa).

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The possible displacement of people from the most vulnerable places, because of

rising tide and climate change, raises the point of security of tenure for the displacedpersons. The lease agreement or the sub-lease arrangement gives the displaced

persons the most secure form of tenure.

7.3 Terms of the Lease Agreement

A Lease Agreement Form contains the terms of the agreement relating to the

identification of the parties in the lease agreement, the site location and size of the

leased plot, the obligations and responsibilities of the lessor and the lessee, which

include matters on compensation, monitoring and grievance redress.

Compensation arrangements are usually agreed before the signing of lease

agreements.

The Rent Review Act 1975 provides the legal framework for the compensation,monitoring and grievance redress of the parties to a lease agreement.

The agreed land rentals are paid annually, and must be reviewed every five years by

both parties. If the parties are unable to reach agreement, the matter may be

resolved through Court action by either party.

An important aspect of these lease agreements relates to the principle of sub lease.

7.4 Sub-Lease

A sub-lease is an arrangement whereby the lessee leases part of the leased land, or

the whole leased land, to a third party (the sub-lessee).

The procedure for obtaining a GOK sub-lease is by application to the Minister for

Lands who will consider and make a decision on the application.

Prior to the Minister considering the sub-lease application, the Planning Board for

planning permission vets the application. This is followed by a survey of the site and

preparation of survey diagram. The applicant then prepares the sub-leasedocumentation, signs it and the application is forwarded for Ministerial approval.Once approved, the sub-lease is registered and given a number. The sub-lease rent

is calculated, and the applicant is informed of the grant of a sub-lease (KLIS, p.15).

7.5 Licenses

A Licence is a right to occupy land, usually for a short period, granted by the

landowner. The arrangement may be either compensatory or gratuitous. A licence

issued with a provision for compensation is more secure than a gratuitous licence.

7.6 Village House Plots

House Plots are sites allocated to the householder, normally in the village area, bythe colonial administration to build a house and remain on the site provided that the

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householder will follow a prescribed course of action listed hereunder:* The householder may lease a house site from the landowner and pay rentals* The householder may allow the use of his land, pit or pond by the landowner

on a reciprocal basis as long the landowner provides a house site* The householder may wish to make a permanent exchange with the

landowner a piece of land, pit or bond in return for a house site* The householder may wish to purchase the house site from the landowner

The mutual arrangement between the landowner and the householder should bemade before the Lands Court. In the absence of such legal arrangement, the Courtshall decide on what should be done.

7.7 Customary Land Exchanges

Customary land exchanges often take place between two landowners. Theexchanges may involve lands on the same island or different islands. Thetransaction must be done in the court before the lands in question are registeredunder their respective new owners. The Island Councils may also be involved inland exchanges with private landowners.

7.8 Land Purchase

The purchase of land is becoming a common practice in Kiribati because of socio-economic reasons. In most cases, the landowner sells land to meet social andeconomic objectives. The buyer normally buys land for development purposes.

The Native Lands Ordinance dictates the purchase of land. The land cannot be soldwithout the prior consent of the other interested parties in the land, including thefamily members and the children.

The Native Lands Ordinance does provide for the alienation of native land as giftfrom the registered landowner to another person or organization, but suchtransaction must have court sanction to be valid.

7.9 Security of Tenure

The most important consideration for any rehabilitation of displaced people issecurity of tenure. It is therefore proposed that formal voluntary land agreements areencouraged in any resettlement scheme. In the case of State owned lands theprovisions of the State Land Act 2002 will apply. With respect to the acquisition ofprivate lands in the urban area, either the Islands Councils or the GOK makes ahead lease agreement with the registered landowners and subsequently make sub-lease arrangements with the resettled people.

The provision of a legal framework in leasing and sub-leasing private landguarantees security of tenure for tenants commensurate with adequatecompensation for the landowners. There are also legal requirements for theattainment of good health and the provision of financial means of enabling thedisplaced people to achieve a better life prior their displacement.

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8. VALUATION OF AFFECTED ASSETS

This section discusses the methods of valuing affected assets as practiced by theGovernment of Kiribati and the Bank guidelines on the valuation of affected assets.The Government of Kiribati uses the principles of replacement cost for loss of assetsand compensation rates for trees, crops, and agricultural pits. These principles are

compatible with the Bank's policies for the use of replacement cost and

compensation in the determination of compensation for loss of property and

agricultural produce.

8.1 The Bank's Guidelines

The Bank approves two methods of conducting valuation of properties for PAPs.These methods are replacement costs and compensation.

The replacement cost approach is based on the premise that the costs of replacingproductive assets that have been damaged because of project activities or improperon-site management can be measured. The approach involves direct replacement of

expropriated assets and covers an amount that is sufficient for asset replacement,moving expenses and other transaction costs.

8.2 GOK Methods of Valuation: legal and administrative framework

There are legal and administrative frameworks in place for conducting valuation of

project affected assets, including loss of property and trees. The methods ofreplacement cost and compensation are used by the GOK in determiningcompensation.

The current schedule of rates of compensation is shown in Annex 2. These includecompensation rates for different types of assets, including agricultural plants and

physical assets.

8.3 Compensation Procedures and Civil Works Schedule

The Lands Management Division normally administers compensation after dueconsultations with the affected persons. The payment is normally paid after a

comprehensive survey and inventory of the affected assets have been made, andlegal owners identified.

8.4 Compensation Rates for Loss of Crops and Trees

Cash compensation is paid for all crops and trees that are found on the land that

have been acquired. The compensation rates are determined by Cabinet taking into

account the fruit-bearing ability of trees. The compensation rates for the differentkinds of trees and crops are shown in the Schedule of Rates provided in Annex 2.

8.5 Compensation for Houses

The compensation for houses is made after the necessary consultations have beenmade with the owners and the GOK Civil Engineer. The Civil Engineer provides the

24

estimated replacement cost of the house, with distinctions made between housingconstructed of local materials and those constructed of more permanent materials.The law requires that the market value of the land and the building be taken intoconsideration for compensation purposes of such assets.

8.6 Compensation for Project

Compensation for the resettlement projects will be made in accordance with existingGOK practice which is consistent with the Bank's guidelines on compensation.

9. ORGANISATIONAL PROCEDURES

This section discusses the organisational procedures in relation to the delivery ofentitlements and the implementation process. The planning and implementationprocesses involve a variety of tasks to be carried out mainly by the GOK and itsagencies. The participation of the people affected is an essential component ofthese activities. The institutional framework of these GOK ministries and agencies,and their respective functions in relation to the formulation of a lands andresettlement framework are described and discussed here.

9.1 The National Disaster Management Office

The National Disaster Act 1993 provides the legal framework for the setting up of themanagement strategies to deal with disaster-related issues. The Office of theBeretitenti (Office of the President) is responsible for the implementation of the Act,including the crucial role in the ultimate control and the coordination of activities ofgovernment ministries and agencies in carrying out their statutory functions andresponsibilities in disaster management and in the land acquisition and resettlementissues.

The National Disaster Act 1993 provides for the establishment of the NationalDisaster Management Office and the National Disaster Council. The NationalDisaster Management Office is located in the Office of the President and serves asthe secretariat for adaptation and disaster management.

The National Disaster Council, appointed by and accountable to the Minister,provides advice on all disaster-related matters, including the coordination ofGovernment and non-government agencies, relating to disaster mitigation,preparedness, response and recovery. The Council is also charged with thepreparation and formulation of a National Disaster Plan.

The National Disaster Plan must be approved by Cabinet, and be reviewedperiodically. All government ministries and agencies and non-government agenciesthat are formally assigned responsibilities under the National Disaster Plan mustmake their own plans and other arrangements necessary to fulfill such roles. TheLands Acquisition and Resettlement Policy Framework is an important component ofthe NDP.

The National Disaster Management Office works in collaboration with other25

government ministries and divisions with the technical capability and capacity to dealwith the lands acquisition and resettlement related issues.

The key government ministries include the Ministry of Public Works and Utilities(MPWU), the Ministry of Internal and Social Affairs (MISA), the Ministry of Financeand Economic Development (MFED) and the Ministry of Environment Lands andAgricultural Development (MELAD).

Their statutory functions and relationship to the lands acquisition and resettlementframework are discussed below.

9.2 The Ministry of Internal Affairs and Social Development (MISA)

The MISA is the parent government body for local governments and theirdevelopment programmes, including the resettlement project. MISA will liaise withall the Island Councils on the planning and implementation of the KAP and itssubprojects. The Island Planning Officer or the designated Island Project Officer willwork closely with MISA on the project. MISA will also cooperate with othergovernment agencies during the planning and implementation of the KAPprogramme.

9.3 The Ministry of Environment Lands and Agricultural Development(MELAD)

The MELAD is constitutionally responsible for the formulation and management ofgovernment policies in relation to lands acquisition, environmental and conservationmatters, and agricultural development.MELAD is the home of the GOK Resettlement Committee, which coordinates officialactivities in relation to lands acquisition and resettlement, and environmentalscreening. With its expertise on environmental, land management and agriculturaldevelopment, the MELAD can take a leading role in the drawing up of RAPs underthe project, particularly through the Lands Management Division, the Environmentand Conservation division and the Agricultural Development Division.

9.3.1 Lands Management Division

The LMD of MELAD is ultimately responsible for the payment of entitlements tothose affected in the project. This responsibility can be delegated to the IslandsCouncils to administer payment of compensation entitlements to the PAPs on eachisland.

The LMD pays annual land rentals for government leases and sub-leases,compensation for crops, trees, and for loss of assets incurred in the course ofimplementing a government project. The LMD also pays compensation for theexcavation of sand and gravel from private property.

The rates for land lease rentals are determined by agreement between the lessorand the leasee. The Government decides the compensation rates for destroyedcrops and aggregates unilaterally without consultation with the interested parties.

26

The LMD is the competent government agency to be involved in land dealings withlandowners if the Government is to provide house sites for the displaced persons.

The LMD has trained and qualified surveyors to map out land boundaries and thedemarcation of house sites required for a resettlement scheme.

The LMD staff is always involved in on-going consultations with various stakeholderson land matters, including landowners, developers and settlers.The Kiribati Land Information System (KLIS) provides basic information on the keyprocesses involving land.The LMD had also undertaken public awareness programmes ultilising the servicesof mass media.

The LMD has the institutional capability and capacity to deal effectively with landsacquisition and resettlement issues.

9.3.2 Environment and Conservation Division

The Environment Act 1999 requires that development projects be subjected to anEnvironmental Assessment (EA).

The Lands Acquisition and Resettlement Project must therefore be subjected to anEA. The ECD staff are already active participants in the main Adaptation Project areaware of the necessity of an EA for any proposed resettlement scheme.

9.3.3 Agricultural Development

The Agriculture Division had been supportive of previous resettlement operationswithin the country, and the Division should be able to mobilize the necessaryresources, including technical assistance, to assist in the agricultural development ofnewly developed areas for resettlement.

9.4 Public Utilities Board

The provision of basic services, such as water, power and sewerage, are essential tothe development and management of a healthy and environmentally friendlysettlement. The provision for sites and services is crucial to the long-termsustainability of a new settlement. The financial implications for these must be takeninto account.

The PUB is already stretched with current commitments, and any extra load must becomplemented with the injection of the necessary resources into the PUB.

9.5 Civil Engineering Division

The Civil Engineering Division of the Ministry of Public Works and Utilities isresponsible for the design of coastal protection work, house plans, road works andvaluation of property.

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9.6 Ministry of Finance and Economic Development

The GOK financial inputs into the Project have to be included in the fiscal Budget tobe appropriated by the Maneaba Ni Maungatabu. The Project Budget will becontrolled and managed by the Administering Authority, but the Accounting Divisionof the MFED will direct the actual disbursements.

Financial contributions from the Bank and other sources will be managed inaccordance with the appropriate provisions of the Public Finance Act (Control andAudit) 1977.

9.7 Conclusion

The formulation of a Lands Acquisition and Resettlement Framework entails anappreciation of the multiplicity of tasks to be carried out by the various stakeholdersin the public service as well as in the private sector.

The GOK, through its various ministries and divisions, has the constitutional andlegal mandate to carry out its responsibilities and obligations, in relation to the landsacquisition and resettlement requirements. The existing management strategies andprocedures applied by the GOK are consistent with the policies of the Bank.

It is proposed that wherever possible, all of these statutory functions andresponsibilities are delegated to the local government level involving the IslandCouncils and the island communities, and the non-government organizations.

10. PROPOSED PROCESSES FOR DELIVERY OF ENTITLEMENTS ANDIMPLEMENTATION

The following discussion is about the actual institutional responsibilities under theproject for the screening process to identify the PAPs, actual formulation of theresettlement plan, implementation responsibilities such as payment of entitlementsand allocation of new sites, and monitoring.

10.1 Subproject Screening

The Island Project Officer (IPO) will guide the formulation of subproject applicationdocuments, but assistance is often augmented by contracted NGOs andgovernmental organisations. The formulation step is designed to ensure thepreparation of a subproject proposal that will be essentially complete and ready forappraisal or technical evaluation by the Island Development Committee. It istherefore important for the project formulator to screen social impacts at this point inthe subproject cycle, assess the number of PAPs, assess alternative locations for thesubprojects if possible, identify the means for compensation, and put in place plansfor monitoring the subprojects.

10.2 Consultation with the Island Council and Village Communities

Consultation with the Island Council and village communities will take place in the

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early process of resettlement planning and screening. The IPO will be assisted bythe Ministry of Internal Affairs and Social Development and the Ministry ofEnvironment, Lands and Agricultural Development, key government stakeholders inthe project, to establish contacts with island leaders to introduce the project, potentialresettlement impacts, and strategy or approach for compensation and rehabilitation.These early meetings will allow the exchange of opinions and collection of commentsuseful for the project.

During the course of these joint meetings the people will be informed of a preliminarysurvey to be conducted on the island to identify the people and communities to beaffected by the project.

10.3 Preliminary Survey

This survey will be conducted by the IPO with representatives of the community,including the women and young people. The survey will visit every affectedhousehold and the affected people will review the results.

Following the completion of site selection, it is then necessary to carry out detailedinventory and social and economic survey within the affected area.

10.4 Socio-Economic Survey of Settlement Impacts

An independent consultant will conduct this survey. The survey will provideinformation on the following:

* Number of residents, households affected by the project and residents whohave to relocate.

* Age, occupation, education, job location, standard of living, length of stay ofPAPs

* Type, size, condition, status, and value of land and building and other assetsprior to project

* Positive and negative impact on residents, assets and environment* Perception and aspirations of residents affected by the project* Current rule of law, including customary law, on land ownership, asset and

loss valuation and compensation.

10.5 Develop an Abbreviated Resettlement Action Plan

If the subproject entails impacts on the displaced population that are minor (impactsare considered "minor" if the affected people are not physically displaced and lessthan 10% of their productive assets are lost) or fewer than 200 people are displaced,an abbreviated resettlement plan may be designed and implemented.

An independent consultant can draw this plan with assistance by the MISA andMELAD.

An outline of an abbreviated plan is provided in Annex 3

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10.6 Consultation with Affected People

Consultations with the affected people will be an ongoing part of the resettlementand land acquisition process. Consultation will begin with an initial explanation of thenature of the project, including explanation of the processes for preparing subprojectproposals, the basic approaches to land acquisition and resettlement, grievanceprocedures, and so on. Consultation will continue during the process of formulationand negotiation of specific aspects of the compensation and resettlement process.Consultation will also include full discussion with affected persons during anyongoing negotiations and grievance processes.

The KAP Office and the appropriate local and central governmental organisations willreview the abbreviated RAP. The comments from the KAP, central and localgovernment agencies and the PAPs will be incorporated in the final abbreviatedRAP.

10.7 Disclose the RAP Policy to the Affected People

A meeting with the Island Council to discuss the adopted RAP takes place followedby a subsequent meeting with the PAPs and their village communities.

10.8 Sign Compensation Contract and Pay Compensation to the PAPs

The final step of resettlement implementation is payment of compensation. TheIsland Council treasurer on the island can do this in collaboration with the LandsManagement Division of the MELAD. In place of compensation, the Island Counciland the IPO will ensure that the PAPs receive the alternative compensation(equivalent size plot of land with the same land use capacity and / or other forms ofcompensation).

10.9 Resettlement Funding, Cost Estimate, and Contingencies

The resettlement budget for the proposed project components is the responsibility ofthe Island Councils where the subprojects and the PAPs are located. In order toensure that the resettlement programme for each island is implemented smoothlyefforts will be made in developing realistic cost estimates for the resettlementprogramme. The detailed cost estimates will be based on comprehensive inventorysurvey of different impacts, and actual costs of compensation.

In order to ensure smooth implementation of the resettlement programme, theresettlement budget will also include other related costs, such as survey andplanning, monitoring and evaluation, technical training and overall administration. Acontingency fund of 10% of the total resettlement cost will be set aside for coveringunforeseen expenses during the implementation phase.

The preparation of the resettlement budget will have to be done by the KAP ProjectOffice in cooperation with the appropriate government agencies, including the MISA,the MELAD and the MFED.

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10.10 Grievance Redress Mechanisms

The affected people will be given several opportunities to review the survey resultsand compensation policies during the planning and implementation processes. Inthe course of the implementation, disputes may arise which require independentresolution. The affected will be informed of their rights and the grievance redressmechanisms available to them. These mechanisms include traditional forms ofconflict resolution, legal and political means. These mechanisms are discussed indetailed in Section 11 below.

11. GRIEVANCE MECHANISM

There are traditional, administrative, political and legal mechanisms available inKiribati for the resolution of grievances aired by the affected or the displaced personsin the planning and implementation of a project.

11.1 The Maneaba System

The involvement of the village elders or unimane under the maneaba system inresolving grievances over community projects has proven to be most effective. Themaneaba system is a meeting of the village people, notably the unimane, in thetraditional meeting hall (maneaba) to discuss village or island matters. Thetraditional authority and very strong influence of the Council of Unimane, in amediating role, is still an effective instrument for conflict resolution, particularly in theouter islands. This should be the first recourse for anyone with a grievance relatedto resettlement, land acquisition or related concerns.

11.2 The Administrative Procedure

After the Council of elders, the next recourse for aggrieved parties, during theplanning and implementation of the project, is the Administering Authority for theproject. Hence, the need for constant dialogue and communication between theAdministering Authority and the project-affected communities cannot be overemphasized.

The Administering Authority may not always be in situation to resolve the grievance,and the matter may be referred to the appropriate government agency to deal withthe matter.

The intervention of political resolution is not always desirable, but sometimes it isunavoidable.

11.3 Political Mechanism

The politicians cannot escape being involved in project complications if theadministrative machinery is unable to assist. The project-affected people will thenenlist the services of the local Member of Parliament or the Minister responsible tohelp them solve their problems.

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11.4 Legal Redress

The legal means of resolving grievances is usually the last course of action for thePAPs. There are existing laws, which provide access for the PAPs to refer theirgrievances to the Court for an independent judgement.

The Kiribati Constitution safeguards the interests of the PAPs in relation tocompensation over their acquired property.

The Rent Review Cap.90 provides that any disagreement on lease rentals betweenthe parties shall be referred to the magistrate's court (section 5).

The Proceedings by and against the Republic (Cap. 76A) gives the right for a personto sue the Republic (section 3) to liabilities in tort committed by its servants oragents, and a breach of duties in regard to the ownership, occupation, possession orcontrol of property (section 4).

The Office of the People's Lawyer, funded from public funds, can provide free legaladvice and represent the PAPs in litigation matters.

11.5 The Bank Guidelines on Grievance Mechanism

The Bank requires that appropriate and accessible grievance mechanisms beestablished for the PAPs and their communities.

11.6 Conclusion

The grievance mechanisms provided by the traditional, administrative, political andlegal processes have proven to be appropriate and accessible to the ordinary 1-Kiribati. The PAPs should know their customary and legal rights to pursue justice inthe course of being adversely affected in a development project. Further, theserights will be discussed at length in the public consultations to be held with each ofthe villages in which activities under KAPII are to be implemented.

12. PAP'S PARTICIPATION IN PROJECT

This section describes the mechanism for consultations with, and participation of,displaced persons in planning, implementation and monitoring of the Project.

12.1 National Consultations

There had been two separate National Consultations during the preparation of theKAP-I focusing on public awareness and commitment for the Project.

The consultations involved the main stakeholders throughout the country, includingIsland Council representatives, traditional elders (unimane), women and youth. TheIsland Planning Officer was a participant during the second National Consultation.

The outcomes of the Second National Consultations included the prioritization of

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vulnerabilities identified by the key island stakeholders, identification of the copingstrategies for the identified vulnerabilities, and the classification of adaptationstrategies.

12.2 Island and Village Consultations

Following the National Consultations, the Island Planning Officers and the Councilrepresentatives have an obligation for the conduct of Island-level discussions on theproject and its implications for those likely to be affected on their own islands.

12.3 Legal Public Notices

The law requires that the planning and implementation of any project must bepreceded by the issuance of public notice so that the affected people in the projectare given the opportunity to submit their objections or comments to the appropriateauthorities before a project is carried out. These mandatory public notices relate toland use planning, involuntary acquisition of lands, foreshore reclamation, andenvironmental assessment for projects.

12.4 Enhancing Active Participation of PAPs

The local governments and GOK ministries involved in the lands acquisition andresettlement are to be encouraged to comply with the Bank's guidelines and theGOK's existing statutory requirements for the issuance of appropriate public noticesduring the planning and implementation of the projects.

The enhancing of the active participation of the PAPs in the planning, implementingand monitoring of the Project will ensure the long-term success and viability of theProject and its components.

12.5 Conclusion

The consultative mechanisms with the PAPs exist in the legal and administrativeframeworks of the central and local government systems.

The participation of the PAPs may be more meaningful if they are directly involvedand invited to be active participants in the process rather than indirect participants.The participation of the PAPs in the planning, implementing and monitoring of theproject must be enhanced by the project management team.

13. PROJECT MONITORING

The arrangements for monitoring the Project by the GOK or the appointment ofindependent monitors to assess and evaluate the resettlement project are discussedhereunder.

13.1 The Bank's Guidelines.

The Bank requires that there is adequate monitoring and evaluation of the activities33

carried out in the resettlement instrument. The Bank requires internal and externalresettlement and evaluation exercises to be carried out in order to monitorresettlement implementation and ensure that affected people are compensatedadequately.

The internal monitoring system, to be done by the Project Administering Authority,aims to have an overview of the resettlement progress during projectimplementation. A monthly report for this purpose will be prepared. A quarterlyoverall resettlement progress report for the project will be submitted to the Bank.

13.2 GOK Monitoring

The National Development Co-ordinating Committee provides an internal monitoringsystem whereby projects are reviewed quarterly to measure progress, both in termsof physical progress and financial costs. The Committee comprises all PermanentSecretaries, and reports directly to the Cabinet.

Another monitoring device is through the political machinery when the Parliamentdebates the Budget, which provides the Project funding.

The Members of Parliament with interest in the project can also raise questions ormotions on the project during the meeting of Parliament.

Monitoring the progress of a project is an important activity that needs to be done toensure that the objectives of the project are fulfilled, and that the public funds and theoverseas development assistance for the project are spent properly and are welljustified.

13.3 Independent Monitoring

As the GOK will be the principal administering authority on the projects, it isimperative that an independent monitoring mechanism is put in place to allow anobjective and unbiased monitoring and assessment of the project activities. To thisend, it is proposed that a non-government organisation and independent assessorsare appointed to carry out an independent monitoring of the project.

14 CONCLUSION & RECOMMENDATIONS

This section reviews the overall findings in relation to the current GOK ResettlementPolicy and the World Bank's Resettlement Policy. A comparison of the two policyframeworks is summarised and recommendations are made to ensure that theGOK's resettlement and lands acquisitions policy framework meets the requirementsof the World Bank.

1. Principles and ObjectivesThe principles and objectives of resettlement policies of the World Bank andthe GOK are synonymous, but are more explicit in the Bank's documents in contrastto the GOK's implicit references.

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It is proposed that the GOK adopts a more lucid pronouncement of its policies onlands acquisition and resettlement.

2. Resettlement PlansThe GOK and the Bank follow prescribed procedures in the planning andimplementation process. These include targeting and information dissemination,subproject formulation, survey and appraisal, approval, implementation, monitoringand evaluation (OP 4.12).

It is recommended that the GOK, through the Resettlement Committee, adapts itsprocedures to the more comprehensive and explicit procedures required by the Bankas outlined in the OP 4.12

3. Resettlement FundingThe GOK does provide for a resettlement budget administered by the MELAD. It isimportant to take note of the Bank's requirement for a national budget to take intoaccount the full costs of compensation as a result of Project implementation.

4. Eligibility CriteriaThe eligibility criteria promoted by the Bank looks closely at the needs of thedisadvantaged, particularly the women, the young people and the poor. This is inline with the current GOK's policy of enhancing growth and ensuring equitabledistribution of resources.

5. Legal BasisGenerally, there are no significant discrepancies between the GOK and the Bank'slegal requirements, which may warrant significant legal amendments from the GOKperspective.

The GOK has existing legislation to comply with the Bank's requirements. There isstatutory provision for both voluntary and involuntary land dealings, organizationalprocedures, valuation of assets and compensation procedures, and grievanceredress mechanisms.

6. Valuation of AssetsBoth the Bank and the GOK use the methods of replacement cost and compensationcosts in the valuation of assets affected in the course of project implementation.

7. Organisational ProceduresThe GOK, through its various agencies at the central and local government levels,has the statutory mandate to carry out its responsibilities and obligations relating tothe lands acquisition and resettlement operations. The current managementstrategies and procedures practiced by the GOK are consistent with Bank's policies.

Whilst the general resources, capability and expertise are not always available at thelocal government level, it is proposed that the implementation process on the landsacquisition and resettlement exercise are delegated to the appropriate personnel andorganizational groups at the island/village level.

35

It is recommended that the MELAD and the MISA conduct a joint training programmeon the concept and application of the Lands Acquisition and Resettlement PolicyFramework for the benefit of people to be actively involved in the projectimplementation.

8. Grievance Redress MechanismsThe Bank requires that appropriate and accessible grievance mechanisms beestablished for the PAPs.

The Project Management may wish to institute a mutually agreed grievance redressmechanism with the PAPs as an initial step before other grievance redressmechanisms, including court action, are sought.

It is recommended that such a Project/PAP redress grievance arrangement is agreedduring early consultations between the parties.

9. PAP ParticipationThe Bank strongly emphasizes the need for the full and meaningful participation ofthe PAPs and their communities from the Project inception to its implementation.The GOK and the local governments are legally bound to comply with publicawareness, publicity and education of Project related issues.

It is recommended that more public awareness on the Project is made through themedia.

10. MonitoringThe Bank advocates the conduct of internal and external forms of Project monitoringto be undertaken. The GOK has its own inherent monitoring mechanisms; however,the provision of an independent evaluation exercise of the Project must also beexecuted by the GOK.

It is recommended that a consultant or an NGO be contracted to carry out anindependent evaluation of the Project.

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REFERENCES

Crocombe, R.G. Land Tenure in the Atolls, IPS, USP, Suva, 1987

Government of Kiribati Kiribati Land Information System (KLIS), Land'

Management Division, MHARD, June, 2000

Kiribati Maneaba Ni Maungatabu ACTS 1989


Republic of Kiribati Constitution 1979

The Laws of Kiribati 1981 (Revision) Volume III Caps. 69-103 and Supplement

The Proceedings by and against the Republic CAP. 76A

Public Finance (Control and Audit) CAP.79

Rent Review CAP.90

University of the South Pacific School of Law PacLli

37

ANNEX 1 SAMPLE OF LEASE AGREEMENT

REPUBLIC OF KIRIBATI

LEASE AGREEMENT

NAME OF LANDOWNER (LESSOR):

ADDRESS:

NAME OF TENANT (LESSEE):

NAME & NUMBER OF LAND:

ISLAND

VILLAGE

SIZE

AGREED RENT

RENT PER ACRE

TERM OF LEASE

CONDITIONS OF LEASE AGREEMENT

1. This lease is subject to Part VI of the Native Lands Ordinance Cap 61 and

the Rent Review Ordinance Cap 90.

2. The tenant agrees to pay the landowner the rent due in the first week of

January each year.

3. The rent shall be reviewed in accordance with provisions of the Rent

Review Cap 90.

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4. During the term of the lease, the tenant shall be entitled to the exclusive of

all land, trees, plants and fixtures and shall pay all rates and taxes which may be

payable in respect of the demised land

5. The tenant shall not sublet the demised land or any part thereof.

6. The land shall not be assigned or transferred without the consent of the

landowner or the community.

7. The tenant shall not do or permit or suffer to be done on the land or in the

buildings on the land anything in contravention of any bye-laws of the Local

government Council or any statutory or other provisions or regulations now or

hereafter in force.

8. The landowner and the tenant shall include their successors in title.9. Any dispute arising from the above provisions will have to be settled

amicably between the parties. In the event of failing to reach mutual agreement

between the parties concerned, the matter shall be referred to the Court.

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ANNEX 2 SCHEDULE RATES OF COMPENSATION

These compensation rates for crops and buildings were decided by Cabinet on the

6 th August, 1992.

The annual leased land rentals were determined by the GOK and landowners'

representatives on the 2 9th November 2004.

These compensation rates and land rentals are current as at 1St May 2005.

ASSET RATES

COCONUT TREE

Fruit bearing $50.00

Non-bearing with trunk $25.00

Non-bearing without trunk $10.00

PANDANUS TREE


Non-fruit bearing $12.00

Newly planted $00.50

TE BERO TREE


Non bearing $03.00


BREADFRUIT TREE

Fruit bearing BOKEKE $200.00


Non bearing $ 60.00

Non bearing without trunk $05.00

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BWABWAIA TREE


Non bearing above 3ft high $02.50

BWAUKIN PER SQ.METRE $03.00

BANANA

Fruit bearing $10.00Non bearing $03.00

KUMARA $5.00 per sq.m.

BUILDING

Permanent $100.00 per sq.m.Semi-permanent $ 50.00 per sq.m.Local building $ 35.00 per sq.m.

BWABAI PIT

Filling $02.08 per sq.m.

BWABAI PLANT $00.90 per lb.

ANNUAL LEASED LAND RENTALS

Commercial $1,807.20 per acreResidential $1,480.82 per acreOuter Islands $ 532.50 per acre

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ANNEX 3 OUTLINE OF ABBREVIATED RESETTLEMENT PLAN

It is anticipated that most of the Pilot Island Adaptation subprojects will have

relatively minor resettlement and land acquisition impacts, and that an Abbreviated

Resettlement Plan will therefore be sufficient to meet Bank and GOK requirements.

An Abbreviated Resettlement Plan is appropriate where impacts on the entire

displaced population are minor (if the affected people are not physically displaced

and less than 10% of their productive assets are lost) or fewer than 200 people are

displaced.

An abbreviated plan covers the following minimum elements:

(a) A census survey of displaced persons and valuation of assets;

(b) Description of compensation and other resettlement assistance to be

provided;

(c) Consultations with displaced people about acceptable alternatives;

(d) Institutional responsibility for implementation and procedures for

grievance redress;

(e) Arrangements for monitoring and implementation; and

(f) A timetable and budget.

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ANNEX 4 METHODOLOGY

This section describes the process followed in the preparation of the Policy

Framework.

The following tasks were undertaken in the collection of data:

* Consultations with the National Coordinator, the Steering Committee and

Bruce Harris, the Senior Sociologist at the World Bank

* Review of literature, including the review of relevant official documents of the

Government of Kiribati and the World Bank.

* Consultations with the key GOK officials, including the Secretary MELAD

Tukaabu Teroroko, SAS MELAD Tebao Tanieru, SAS MFED Kabure

Temareti, and Director of Lands Management Tebutonga Ereata.

* Consultations with targeted community stakeholders, including landowners,

developers, and likely displaced people.

* The use of the Internet to examine the land acquisition and resettlement

policy framework exercises in other developing countries.

Consultations with Project Team

The Terms of Reference for the Lands Acquisition and Resettlement Framework

were discussed with the World Bank Project Team, and Bruce Harris, the Senior

Social Scientist at the World Bank, made available a CD containing key Bank

documents, the BP 4.12 on Involuntary Resettlement and OP 4.12 Involuntary

Resettlement (Revised April 2004). During his recent visit to Tarawa. The TOR

appears as Annex 5.

I attended a National Adaptation Steering Committee (NASC) meeting that was

useful in allowing me to focus on the parameters of the study.

Review of Literature

A review was made of the relevant GOK files and documents, the Bank's OP 4.12

43

and the BP 4.12 documents, relevant Kiribati laws, and books on Kiribati land tenure.

GOK Documents

The Ministry of Environment Lands and Agricultural Development (MELAD) gave me

access to documents, which explained the current GOK resettlement principles and

objectives.

The minutes of the Resettlement Committee were also studied.

The GOK Resettlement Policy files and documents in relation to the recent relocation

of outer island people from the Gilbert Islands group to the Tabuaeran and Teraina in

the Northern Line Islands were examined. The rehabilitation of people to the

western islands was induced by over-population as opposed to climate change.

The Lands Management Office (LMO) kindly provided files and documents on land

management issues, such as land leases and compensation rates.

Sample copies of the lease agreement and sub-lease agreement were examined

and noted. These can be sighted in Annex 1.

The LMO produces a Kiribati Lands Information System (KLIS), a valuable manual in

understanding the various processes involved in the types of voluntary land

agreements discussed in Section 3 of the Report.

Review of Legislation

A review of the relevant laws on lands acquisition and resettlement issues was also

made. These included the Native Lands Ordinance (Cap.61), the Land Planning

Ordinance, the Local Government Act 1984, Public Utilities Ordinance

(Cap.83),Proceedings by and against the Republic (Cap.76A), and the Public

Finance (Control and Audit) (Cap.79).

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Land Tenure in the Atolls

A useful simple description of land tenure in Kiribati is found in the Land Tenure inthe Atolls (1987).

Consultations with Government Officials

Discussions were held with the Permanent Secretary for MELAD (Tukabu Teroroko),the Senior Assistant Secretary MELAD (Tebao Tanieru), Director of Lands(Tebutonga Ereata), Senior Assistant Secretary, Ministry of Internal and SocialAffairs (Manikaoti Timeon) and Senior Assistant Secretary, Ministry of Finance andEconomic Development (Kabure Temareti). These officials had been closelyinvolved in the GOK resettlement planning and implementation, and are currentrepresentatives of their own Ministries on the Resettlement Committee.

The Permanent Secretary MELAD explained the Terms of Reference of theResettlement Committee, which is chaired by the Minister MELAD.

Tebutonga Ereata is principal adviser on general land matters and he explainedGOK policies not readily available in documents. Kabure Temareti was involved inthe planning and implementation of the resettlement of Tabuaeran and Teraina.They provided background information on the GOK principles on past resettlementoperations.

Consultations/Interviews with Community Stakeholders

Consultations and informal interviews were also carried out with community and non-government organizations. These included dialogue with the old men or unimaneand office bearers of the Tokatarawa Association, and the Clerk of the TeinainanoUrban Council (TUC). Some of these people were participants in the NationalConsultations on the Kiribati Adaptation Project, and were fully conversant with theissues.

45

In discussions with the unimane, they commented that the most likely places to be

adversely affected by rising tide and climate change are the reclaimed and accreted

lagoon areas on South Tarawa, which historically were tidal flats.

The Internet

The use of the Internet to view similar Lands Acquisition and Resettlement

Frameworks in other developing countries was made.

The website on the USP Vanuatu Law Pacd1 provides a useful update of Kiribati

laws.

46

ANNEX 5 TERMS OF REFERENCE

Terms of Reference - Land Acquisition and Resettlement Policy Framework

[excerpt, omitting Background, Programme and Project descriptions]

2. Objectives of the Land Acquisition and Resettlement PolicyFramework

The Land Acquisition and Resettlement Policy Framework would be a writtendocument developed through a consultative process with appropriate stakeholders, andendorsed by the Government, which would clarify any voluntary land use agreementsamongst communities, and any involuntary land use or resettlement compensation to beprovided by the Government as a result of KAP II investments. The Policy Frameworkshould specify both the arrangements proposed for the Pilot Island AdaptationComponent (where agreements on land use would be made by communities) and thosefor the Priority National Adaptation Investments (where investments would be publiclyfunded by the Government).

3. Tasks

The consultant would undertake consultations with key stakeholders and conductresearch targeted to include the following specific areas:

(a) Background Research

a. The consultant should become familiar wvith the World Bank InvoluntaryResettlement Operational Procedures 4.12 and Bank Procedure OP 4.12available at the Web links below:

hrltl: / / wN]nflO 8.Xxorlihalilik.org,' 1 n.timrtionial /N Lantlls/( pMan.Imualnsf/0( A2D0 L41 41:)1 BD 58S85256B 1 '()(8I I ')16;( )pcnl )(orlulnut

hrtp:/ A/ fln t 1 8 wv irdhan k.oruv / I fstittiO tnlil ,1 rntnil" s M !( II N1 IO u il. nsf/0/ 1 90361`31 6( \I N 5268.52,561190080I 9 \9( ) DnI) cutncntit

b. In addition, the consultant should obtain copies of best practiceexamples of Land Acquisition and Resettlement Policy Frameworks fromMr. Bruce Harris, Senior Sociologist at the World Bank(bharris@a worldbank.org). The consultant should liaise regularlv xxithMr. Harris via e-mail during his/her work.

47

(b) Assess the current nature of land ownership and rights of use in theKiribati context, including:

a. Traditional rules and understandings concerning land ownership and use;

b. Processes of decisionmaking within the communitv with regard to land use

and with regard to the resolution of disputes concerning land ownership or

use;c. Identification of any practices of voluntary donations of land for public

purposes, the circumstances under which such donations have traditionally

occurred (if they have occurred) and an assessment of any mechanismsdesigned to ensure such donations are, in fact, genuinely voluntary;

d. The role of formal institutions, such as Magistrates Court (Land Court) and

the High Court, in land ownership, use and dispute resolution, and the

relationship between formal and customary institutions;

(c) Assess the nature and operation of the existing laws, regulations andprocedures of the Government of Kiribati for land acquisition and/orresettlement (permanent or temporary) if such is required during projectimplementation, with special attention to procedures for the kinds of land

ownership and use identified above. This should include, but not necessarily be

limited to, review of the Native Lands Ordinance (Cap. 61, Revised Edition

1977), Neglected Lands Ordinance (Cap. 62, Revised Edition, 1977), Non-

Native Land Ordinance (Cap. 63, Revised Edition, 1977) and Magistrates'Courts Ordinance (Cap. 52, Rcvised Edition, 1977).

(d) Review, if available, actual instances in which government activities haveresulted in land acquisition and/or resettlement and assess the practices

and outcomes with respect to relocation, compensation and rehabilitationfollo-wed in such instances, including the extent to which such practices are

consistent with formal legislative and regulatory guidelines;

(e) Assess the consistency between borrower laws, regulations and practicesand Bank policy requirements as contained in OP and BP 4.12 and definemeasures to bridge any gaps between them;

(f) Develop monitoring and implementation procedures, includingconsultative mechanisms with key stakeholders and grievance procedures;

(g) Draft a Land Acquisition and Resettlement Framework which will

accommodate existing land ownership and use patterns and practices (including

traditional and customarv vxalues and Government policies, legislation and

procedures on land acquisition and resettlement) while meeting the World Bank

poliqc requirements.

48

4. Outline of the Report

The Land Acquisition and Resettlement Policy Framework prepared by the consultantshould cover the following elements.

1. The process followed in the preparation of the Policy Framework.2. A brief description of the project and components for wlhich land use,

acquisition and resettlement are likely to be required, and an explanation of whya resettlement plan cannot be prepared by project appraisal (the preciseinvestments may not be known);

3. For voluntary land use agreements made between communities (in Component2), the process of community agreement, signed forms, compensation (if any),monitoring and grievances involving the use of land (refer to examples providedby Bruce Harris).

4. For any resettlement or land acquisition under Component 1, principles andobjectives governing resettlement preparation and implementation;

5. A description of the process for preparing and approving resettlement plans;6. Estimated population displacement and likely categories of displaced persons, to

the extent feasible;7. Eligibility criteria for defining various categories of displaced persons;8. A legal framework for reviewing the fit betwveen borrower laws and regulations

and Bank policy requirements and measures proposed to bridge any gapsbetween them;

9. Methods of valuing affected assets;10. Organizational procedures for delivery of entitlements and implementation

process.11. A description of grievance mechanisms;12. A description of the arrangements for funding resettlement, including the

preparation and review of cost estimates, the flow of funds, and any contingencyarrangements;

13. A description of mechanisms for consultations with, and participation of,displaced persons in planning, implementation and monitoring, and;

14. Arrangements for monitoring by the implementing agency and, if required, byindependent monitors.

The consultant should refer to World Bank Procedures OP and BP 4.12, examples ofgood practice Frameworks, and consult with Mr. Bruce Harris at the World Bank, shouldfurther guidance be required.

5. Arrangements

The consultant xwill report to the Adaptation Technical Team and Steering Committee,through the National Coordinator, Mr. Kaiarake Taburuea. He will also liaise closelywith the NAPA Team Coordinator, Mr. Nakibae ITeuatabo and Mr. Andrew Teem.

The consultant should also wvork closely with the consultant who will be simultaneously

49

working on the preparation of the Environmental Analysis and the consultant

responsible for the Legal and Regulatoiy Review.

6. Facilities Provided

A budget will be provided for consultant fees and per diem if the consultant is not a

resident of Kiribati. The Adaptation Working Group and the National Coordinator will

assist in setting up contacts in the relevant ministries, who will provide the necessary

documentation and will be available for information.

7. Timeframe

One person-month during January - March 2005.

50

GOVERNMENT OF THE REPUBLIC OF KIRIBATI

KIRIBATI ADAPTATION PROGRAMME

PILOT INVESTMENT PHASE (KAP 11)

LANDS ACQUISITION AND RESETTLEMENT

POLICY FRAMEWORK

RONITI TEIWAKI

August 2005

Acknowledgement

The Report has been produced with the cooperation and assistance of the GOK

and the World Bank.

I am grateful to the Permanent Secretaries for the MELAD (Tukabu Teroroko)

and the MISA (Karibaiti Taoaba) for their approval in accessing relevant

documents in their Offices during the course of data collection.

I am also grateful to the Director of Lands Management for his advice on land

matters and making available important land documents, including the Kiribati

Information Lands System. The assistance of the Senior Assistant Secretary

MELAD (Tebao Tanieru) is much appreciated.

The kind assistance of the Parliamentary Counsel in providing relevant law books

is really appreciated.

The advice of the unimane, the Tokatarawa Association and the Teinainano

Urban Council are gratefully acknowledged.

My sincere appreciation to Bruce Harris of the World Bank for his useful advice

and editorial assistance.

2

Acronyms and I-Kiribati Terms

CLPB Central Land Planning Board

DLUP Detailed Land Use Plan

EA Environment Assessment

ECD Environment and Conservation Division

GEF Global Environmental Facility

GLUP General Land Use Plan

GOK Government of Kiribati

IPO Island Planning Officer

KLIS Kiribati Lands Information System

LARPF Land Acquisition Resettlement Policy Framework

LLPB Local Land Planning Board

LMD Lands Management Division

Maneaba traditional meeting hall

MFED Ministry Finance & Economic Development

MELAD Ministry Environment Lands & Agricultural DevelopmentMISA Ministry of Internal and Social Affairs

MPWU Ministry of Public Works and Utilities

NASC National Adaptation Steering Committee

NDP National Disaster Plan

PAPs Project Affected Persons

PUB Public Utilities Board

RAP Resettlement Action Plan

Unimwane traditional elders

UNDP United Nations Development Programme

Figures

Figure 1 The Processes Integrating the KAP into the Kiribati National Strategic

Plan 2004-2007

3

Contents

Acknowledgement 2

Acronyms and Abbreviations 3

Figures 3

Contents 4

1. The Project 5

2. Resettlement Principles and Objectives 8

3. Preparation of Resettlement Plan 9

4. Resettlement Funding Arrangements 13

5. Criteria for Eligibility 14

6. Legal Framework 15

7. Voluntary Land Agreements 20

8. Valuation of Affected Assets 24

9. Organisational Procedures 25

10. Proposed Processes in Planning and Implementation 28

11. Grievance Redress Mechanism 31

12. PAP's Participation in Project 32

13. Monitoring 33

14. Conclusion and Recommendations 34

References 37

Annexes

Annex 1: Sample of Lease Agreement 38-39

Annex 2: Schedule of Rates of Compensation 40-41

Annex 3: Outline of Abbreviated Resettlement Action Plan 42

Annex 4: Methodology 43-46

Annex 5: Terms of Reference 47-50

4

1. THE KIRIBATI ADAPTATION PROJECT

This section provides a brief description of the Kiribati Adaptation Project (KAP) andthe rationale for a Lands Acquisition and Resettlement Policy Framework (LARF).

1.1 Description

The Kiribati Adaptation Project was formulated in response to the grave concern ofthe Government of Kiribati and of the international community about how Kiribati willmitigate the potentially negative impacts of it's vulnerability to climate change,climate variability and sea level rise. The GOK is developing the Kiribati AdaptationProgramme to mainstream adaptation into national development planning with thesupport of the World Bank, the Global Environmental Facility, the Japan PHRDClimate Change Fund, and the United Nations Development Programme.

The KAP comprises three phases: The Preparation Phase, the Pilot ImplementationPhase, and the Expansion Phase.

1.2 The Preparation Phase

In 2003, the Preparation Phase of the Kiribati Adaptation Project (KAP-1) wasinitiated under a World Bank-administered US$646,000 grant funded by the JapanSpecial Climate Change Fund. The KAP-1 design was informed by the extensiveanalysis of the 2000 Regional Economic Report, as well as by the results of tworegional High Level Adaptation Consultations conducted in Fiji in 2002-03. Theseconsultations concluded that adaptation, to be effective, needs to be mainstreamedinto national development plans, policies and budgets, and treated as a majoreconomic and social risk, rather than just an environmental issue.

KAP-1 (2003-05) is being coordinated with a GEF National Adaptation Programme ofAction (NAPA) grant through UNDP. The project has been closely linked with thepreparation of the 2004-07 National Development Strategy and Ministries' 2-3 yearsOperational Plans through the following process:

5

First National Communications (1999) and

National Communications Strategy(2003)

First National Consultation:Assessment of Island Vulnerobilities

(Completed)

Second National Consultetion:Prioritization of Coping Strategies

> ~~~~(Completed)

Integration of Adaptation into 2004-07Nntional Development itrategy

(Completed)

Technical, 5ocial and Economic Analysis of* ~~~Adaptation Options

(on-going)

Adaptation Mainstreaming into MinistryOperational Plans

a ~~~~~(on-goi ng)

lo Completion of National Adaptation Programmeof Action (NAPA)

(planned)

The objectives of the Preparation Phase - now drawing to a close - are to

mainstream adaptation into national economic planning, prepare a National

Adaptation Programme of Action (NAPA) and design priority pilot investments for the

next Pilot Implementation Phase.

6

1.3 The Pilot Implementation Phase

The Pilot Implementation Phase is under preparation, and it aims to consolidate themainstreaming of adaptation into national economic'planning. This phase of theproject will run from 2005-08 and is expected to include the following components:

* Priority National Adaptation Investment, funding priority adaptation measuresmainstreamed into the MOPs of key sectoral Ministries.

* Pilot Island Adaptation, funding pilot community-based adaptationinvestments in two pilot islands according to a whole-island approach. Thepilot islands would be selected based on chances of success and replicability,representativeness, and degree of vulnerability, amongst other criteria.

* National Consultation and Mainstreaming, funding periodic nationalconsultations, awareness, and consultation in islands targeted for theexpansion phase, and continued mainstreaming into national economicplanning.

* Program Management and Capacity Building, funding training, prioritystudies, and project management.

It is likely that some of the activities involved in the implementation of MOPs and/orPilot Island Adaptations will require land acquisition and/or resettlement. The PilotIsland Adaptation activities will be funded under a Community Adaptation Grantfacility. Since neither the Pilot Island Adaptation activities nor specific activitiesunder the MOPs to be funded by Bank assistance will be fully identified anddesigned until KAP II is already under implementation, it is necessary to devise aLand Acquisition and Resettlement Framework to establish procedures to befollowed in the event land acquisition and/or resettlement of people is necessitatedby the impacts of climate change and/or activities of the project. This LARF is a keydocument for both the pilot phase and for expansion of KAP nationally, which will beeffected under KAPIII.

1.4 Expansion Phase

KAP-11 would be followed by a long-term expansion phase (KAP-III), expected toexpand adaptation investments piloted during KAP-II to the whole of Kiribati.

1.5 The Rationale for a Lands Acquisition and Resettlement PolicyFramework

Following the National Consultations, the CCST has identified 10 priority areas forKiribati: awareness, water resources, inundation/coastal erosion, health impacts,agriculture, family planning, fisheries, waste management, overcrowding, andmiscellaneous other options. Implementation of subprojects in these areas in thepilot islands may require land acquisition and the consequent resettlement ofaffected people. This framework identifies the principles to be followed in the eventof land acquisition, resettlement, and compensation based on Kiribati's legislation,and the Bank's policy on involuntary resettlement.

7

2. RESETTLEMENT PRINCIPLES AND OBJECTIVES

The Bank's and the GOK principles and objectives of resettlement preparation andimplementation are discussed in this section.

2.1 Resettlement Principles and Objectives

The purpose of the Resettlement Policy Framework is to provide guidance for theprocess and intended outcomes of resettlement plans and activities to be applied tosubprojects during subproject implementation. The overall principle of theResettlement Policy Framework is to ensure that those people whose livelihoods orassets are directly affected by the adverse impacts of climate change and /or projectactivities realize benefits as a result of project implementation and that all steps aretaken to minimize negative impacts on them.

The objectives of the resettlement framework provide guidelines to stakeholdersparticipating in the mitigation of adverse social impacts of the project.

Involuntary resettlement can cause long-term hardship, impoverishment, andenvironmental damage unless appropriate measures are carefully planned andcarried out. For these reasons, the overall objectives of the approach to resettlementand land acquisition under the Project are as follows:

(a) Involuntary resettlement should be avoided where feasible, or minimized,exploring all viable alternative project designs.

(b) Where it is not feasible to avoid resettlement, resettlement activities should beconceived and executed as sustainable development programs, providing sufficientinvestment resources to enable the persons displaced by the adverse impacts ofclimate change and/or project activities to share in project benefits. Displacedpersons should be meaningfully consulted and should have opportunities toparticipate in planning and implementing resettlement programs.

(c) Displaced persons should be assisted in their efforts to improve their livelihoodsand standards of living or at least to restore them, in real terms, to pre-displacementlevels or to levels prevailing prior to the beginning of project implementation,whichever is higher.

It is noted that the Bank's Involuntary Resettlement Policy (OP4.12) defines theaffected people as those people who are directly affected socially and economicallyby the Bank-assisted investment projects.

The objectives of the proposed Resettlement Policy Framework are consistent withthe Bank's policies as well as meeting the objectives of the national climate changeadaptation policies and strategies. The focus of this project is in regard to theresettlement/rehabilitation of the vulnerable communities to climate change andrising sea levels.

8

3. PREPARATION OF RESETTLEMENT PLANS

The proposed process for preparing and approving resettlement plans is based onthe existing GOK policies and practice, and the provisions and guidelines of theBank's OP and BP 4.12.

3.1 The GOK Policy and Strategy

The MELAD (Ministry of Environment, Lands and Agricultural Development) is thelead agency responsible for co-ordinating planning and implementation of landsacquisition and resettlement. The Ministry formulates and manages the resettlementbudget and pays compensation to the affected people after the Lands ManagementDivision (LMD) has carried out a survey of the assets and trees on the site.The LMD is also responsible for surveying the house sites. The MELAD provides thesecretariat for the Resettlement Committee.

At the time of writing the GOK was in the process of revising its resettlement policy toachieve more manageable population distribution in the country. This revised policywould look more into urban overpopulation on South Tarawa resettling people fromthe Gilbert Group to the Line and Phoenix Groups.

It was also noted that there was a need to address resettlement outside Kiribati tofurther address adverse impacts of climate change. This subject matter is notcovered in this Report.

3.2 The GOK Resettlement Committee

The Resettlement Committee was established by the GOK to deal with theresettlement of Tabuaeran, Teraina and Kiritimati islands. The Committee isresponsible for developing guidelines, eligibility criteria, plans, strategies andpriorities for the GOK resettlement schemes. The Committee is therefore involved inthe planning and implementation of resettlement schemes.The Committee makes recommendations to the Cabinet for consideration andapproval.

The Committee is a high-level body consisting of the main GOK stakeholders underthe chairmanship of the Minister of Environment Lands and AgriculturalDevelopment. The members include the Minister and Permanent Secretary of theMinistry for Line and Phoenix Development (MLPD), Permanent Secretary MELAD,Permanent Secretary Ministry of Internal and Social Affairs, Director of LandsManagement, Director of Environment and Conservation Division, Director ofMinistry of Education, Youth and Sport, an Economist from the Ministry of Financeand Economic Development, Chief Health Inspector, Chief Councillor (Betio TownCouncil), and the Chief Councillor (TUC).

The existing Resettlement Committee has the experience and the capability to dealwith general resettlement issues, and it can also adequately handle any proposedlands acquisition and resettlement for the KAP. The resettlement plan for the

9

Resettlement Committee is drawn as a joint effort by the principal GOK stakeholders,including the Lands Management Division and the Environmental and ConservationDivision of the MELAD.

The MELAD has the expertise to draw up resettlement plans in line with the Bank'sRAP procedures, and it is recommended that the MELAD, in conjunction with theother GOK key stakeholders, and the respective Island Councils and communities, isgiven responsibility in drawing up either the RAPs or the settlement plans for eachisland community. The participation of island community representatives is crucialboth in the planning and implementation stages of these resettlement plans.

3.3 The World Bank's OP 4.12

According to the Bank's OP 4.12, the resettlement plan or resettlement policyframework will include measures to ensure that the displaced (project affected)persons are

i) Informed about their options and rights pertaining to resettlement;

ii) Consulted on, offered choices among, and provided with technically andeconomically feasible resettlement alternatives; and

iii) Provided prompt and effective compensation at full replacement cost forlosses of assets attributable directly to the project.

The critical steps in the planning and implementation process include targeting andinformation dissemination, subproject formulation, survey and appraisal, approval,implementation, and monitoring and evaluation (OP 4.12).

The following discussion covers the process for a full RAP. At the conclusion a briefexplanation of the difference between a full and an abbreviated RAP is presented.

3.4 Targeting and Information Dissemination

Targeting and provision of information are critical to attaining the overall goals of theProject with particular reference to the project clientele. The objective is todisseminate information about the project to the potential PAPs. On those islandswhere it is planned that subprojects will be implemented, an initial meeting should beheld before any subprojects are prepared in which Island residents meet together atthe Island Council maneaba. The purpose of this meeting will be to:

* Provide an overall explanation of the project and its objectives;* Discuss the possible impacts with respect to land acquisition and

resettlement;* Explain that all land will be acquired voluntarily, the general nature of

compensation and resettlement assistance to be provided, and themechanisms for filing and assessing grievances for activities under theproject;

o Explain the general process for preparing and submitting proposalsfor subprojects. The details of this process are discussed in theOperational Manual.

10

3.5 Subproject Preparation and Screening

On each island the Island Project Officer will be the key official who will work withvillages and groups within villages to prepare subproject proposals under the project.Subproject proposals should be, to the extent possible, the result of discussion andconsensus at the village level leading to a proposal that has the general support ofmost of the village population. Traditional decision making processes will beimportant in this process, though the IPO will need to emphasize the importance offull participation of all groups in the village in this process.

Once villages decide on a subproject proposal and the proposal is prepared in a formthat can be submitted for evaluation, the proposal will be passed on to the IslandDevelopment Committee. The process of evaluation by the IDC is discussed indetail in the Operational Manual. As a part of this process, for each subprojectidentified for possible funding under KAPII a screening process should be carried outto identify the impact of the subproject with respect to land acquisition, resettlement,livelihood interruption or other impacts on livelihood and/or assets that will trigger theresettlement policy framework. Where impacts on the project affected people areminor - that is, where no people are displaced and less than 10% of their productiveassets are affected - or where fewer than 200 people are displaced, an AbbreviatedResettlement Action Plan may be agreed with the borrower. It is expected that mostsubprojects under KAP II will require Abbreviated Resettlement Action Plans. Wherethis is not the case, a full Resettlement Action Plan must be agreed andimplemented.

3.6 Consultations

Consultations with the local residents will be an ongoing feature of the process ofsubproject formulation, submission, approval, implementation and monitoring.

Consultations with potential PAPs will be an important part of this process. Suchconsultations will begin with the information and awareness meetings that take placebefore any subproject proposals are prepared, and continue through the life of theproject. The people must be informed about their options and rights pertaining toresettlement, consulted on, offered choices among, and provided with technicallyand economically feasible resettlement alternatives, and provided promptcompensation at full replacement for loss of assets because of the project (OP 4.12para.6a). A consultation framework will be developed for each subproject that willoutline exactly how the process of discussion and negotiation will take place with thePAPs.

3.7 Reconnaissance Survey

As a part of the preparation of subproject proposals, a survey will be conducted toidentify the likely impact of the subproject with respect to land acquisition andresettlement. This survey will be carried out under the direction of the IPO on eachisland for each subproject. The results of this survey will be included in thesubproject proposal submission provided to the Island Development Council. Theproposal submission will need to include the following information:

1 1

1. For any voluntary contributions of individual land without compensation, aconsent form which includes the name of the land donor/s, and details of thecontribution (type, size, location, specified period of use etc. as appropriate). Thisshould be signed (or thumb-printed) by the land donor/s (including the male andfemale heads of the household involved), and the chairperson of the Council ofUnimwane.

2. For land contributions against compensation, a consent form which includes thename of the land donor/s, details of the contribution (type, size, location,specified period of use etc. as appropriate), and details of the agreedcompensation arrangements. This should be signed by the land donor/s(including the male and female household heads), a nominated representative ofthe group making the subproject proposal, and the chairperson of the council ofelders (the unimane). A sample consent form, modeled on the GOK LeaseAgreement, is shown in Annex 1.

3. Where the land donated is communal land, these forms can be signed on behalfof the village by a recognized village leader.

For sub-projects where land is donated or provided against compensation, the IslandDevelopment Council will take the following steps during its appraisal of proposedsub-projects:

i) verify with the land donor/s that the donation is indeed made on a voluntarybasis, that the donor/s is/are the legitimate owner/user of such lands, and thatthe land donor/s is/are fully informed of the nature of the sub-project and theimplications of donating the property;

ii) Assess that the land donor does not suffer a substantial loss affecting his/hereconomic viability as a result of the arrangement. Where there is substantialloss the sub-project cannot be approved as proposed (the amount donatedshould usually not exceed 10% of his/her land or assets without appropriatecompensation);

iii) Assess that the compensation arrangements are appropriate. Thecompensation should be roughly equivalent to traditional compensationarrangements. Where demands are excessive, compensation inappropriateand/or the land donor and the community cannot agree, the IPO and/orCommunity Facilitators will encourage alternative sites or arrangements. Thesub-project will not be approved for funding by a Small Grant until suitablealternative sites are identified and land has been voluntarily made availablethrough the process described above. If no suitable land is made availablethrough the Voluntary Land Contribution process, the sub-project would notbe further processed.

3.8 Disclosure of the RAP to the Affected People

A public meeting will be held in each affected village to inform the affected peopleabout the resettlement and compensation issues.Once a Resettlement Action Plan is completed, a public meeting will be held todisclose the exact contents of the RAP to the affected people.

12

3.9 Sign Compensation Contract and Pay Compensation

The final step of resettlement implementation is agreement of all parties to thecompensation and related arrangements, and payment of compensation, ifnecessary. Alternative forms of compensation, such as allocation of land andemployment opportunities, will also be explored.

3.10 Source of Funding

The project will be responsible for funding all resettlement and land acquisitionrelated expenses. Funding arrangements are discussed in more detail in section 4.

3.11 Grievance Redress Mechanism

The mechanisms for redressing grievances will also be presented and explained tothe PAPs in a public meeting. PAPs will be given opportunities to review the surveyresults and compensation policies during the resettlement planning andimplementation. The first step in any grievance procedure will be negotiation at thevillage level between the affected persons and island representatives, particularlywith the IPO and, through the IPO, with the Island Council. If this does not lead to asatisfactory arrangement, the grievance will be forwarded to the Project ManagementOffice for adjudication. If this does not result in agreement the PAP shall have theright to pursue the grievance through the court system.

3.12 Monitoring

It is the responsibility of the GOK to make an assessment to determine that theobjectives of the resettlement instrument has been achieved. The Bank requires thatboth an internal and external monitoring of the project's progress be undertaken.The details of the monitoring processes are discussed in Section 12.

4. RESETTLEMENT FUNDING ARRANGEMENTS

This section describes the arrangements for funding resettlement, including thepreparation and review of cost estimates, the flow of funds, and any contingencyarrangements. The full costs of resettlement activities necessary to achieve theobjectives of the project are included in the total costs of the project. The detail costestimates will be based on a comprehensive inventory survey of different impacts,and actual cost for all types of compensation.

4.1 The Resettlement Budget.The resettlement budget is to include cost estimates for the planning andimplementation phases, and provision for a contingency fund.

Effort should be made in developing realistic cost estimates for the resettlementprogramme. The detailed cost estimates will be based on comprehensive inventorysurvey of different impacts, and actual costs for various types of compensation.

The budget must also provide for other related costs during the implementation

13

phase, such as survey and resettlement planning, resettlement monitoring andevaluation, and overall administration.

The provision for a contingency fund of no less than ten percent of total resettlementcost will be set aside for covering cost changes due to inflation or unexpectedsituations should occur during the implementation.

4.2 Sources of Funding

The GOK will be responsible for providing the necessary funds for the planning andimplementation of the resettlement operation as a part of the overall project funding.

The necessary financial provision has to be presented as part of the budget by theresponsible Ministry to the Maneaba Ni Maungatabu, the Kiribati NationalParliament.

4.3 Flow of Funds

The funds earmarked for the project will all be directed into the Consolidated Fund,and will be disbursed in accordance with financial regulations, budgetary andadministrative procedures to the responsible Ministries and Divisions for finalpayment to the payees.

The documentation and receipting of these public funds will be the responsibility ofrespective government agencies. Thus, the money for the compensation will be paidto the MELAD after the Ministry has submitted compensation claims to theAccounting Division of the MEFED.

The responsible officer in the Accounting Division will check that the payment is inorder and that there is budgetary provision for such expenditure item in the currentGOK Budget. Once the MELAD payment voucher (PV) has been checked andapproved by the Accounting Division, the disbursement of the necessary funds forcompensation is made to the MELAD. The Accounting Division of the MELAD thenpays the compensation to the affected persons, who sign duplicate copies of thePVs. The payee retains the duplicate copy of the PV, and the original copy goesback to the Accounting Division of the MFED.

These arrangements are already in place as a part of the resettlement processfollowed by the GOK in the resettlement of the eastern islands. Therefore, the GOKhas a financial framework in place for the sourcing and management of the Projectfunds in relation to resettlement and land acquisition.

5. CRITERIA FOR ELIGIBILITY

This section explains the Bank's guidelines on the eligibility criteria, and those of theGOK's policy on the issue.

14

5.1 The Bank's Policies (OP 4.12)

The Bank stresses the need for a census to be carried out to identify the personswho will be affected by the project and to determine who will be eligible forassistance. The date of the census will be the cut off date for eligibility for benefitsunder the resettlement plan. Anyone who moves into an area affected by thesubproject after the census date will not be eligible for benefits. The PAPs shouldreceive compensation for loss of all productive assets, including, but not limited to,land, buildings, trees, crops and related assets. (OP 4.12, para.15-16).

5.2 The GOK Policy

The GOK pursue policies, which are consistent with the Bank's directives outlinedabove. The project's Administering Authority normally carries out a census toidentify the PAPs and the extent of their compensation claims.

The procedures for establishing the eligibility criteria are done in consultation with thePAPs and the local authorities, particularly the Island Councils. The Island Councilsinclude representatives of non-government organizations on the islands, includingthe women, the Church, the youth and traditional elders (unimwane).

5.3 Eligibility Criteria for KAP

Following the national consultations, the CCST identified priority areas under theKAP: public awareness, water resources, inundation/coastal erosion, health impacts,agriculture, family planning, fisheries, waste management and overcrowding. Usingthese areas as guidelines, the individual Island Council, in consultation with thevillages, will determine its own criteria for eligibility under the KAP. The ultimateobjective of the exercise is to improve the situation of the vulnerable communities. Afull explanation of the eligibility criteria is presented in the Operational Manual.

5.4 Promoting Advancement for Vulnerable Communities

The Bank advocates exploring all viable alternative project designs to avoid, wherefeasible, or minimize displacement (BP 4.12). The rehabilitation and promotion ofquality life in these vulnerable communities in their existing localities is the preferredoption to pursue.

The most vulnerable areas require better land use planning, and a layout plan for thesettlements properly mapped out with provision of sites and services willconsiderably improve community life. Security of tenure for the tenants maynecessitate drawing up of suitable forms of voluntary land agreements, such as thelease and sub-lease agreements, with landowners.These land arrangements must comply with existing legal requirements.

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6. LEGAL FRAMEWORK

This section reviews existing legislation in Kiribati on land acquisition andresettlement related issues, examines current Bank policy requirements, andproposals for bridging any discrepancies between them.

6.1 Kiribati Constitution

Section 8 of the Kiribati Constitution provides that no property of any description shallbe compulsorily acquired unless such acquisition is necessary in the interests ofdefence, public safety, public order, public morality, public health, town or countryplanning or the development or use of any property for a public purpose. Anyacquisition of private land must be adequately compensated within a reasonabletime.

The Constitution also provides that any disagreement over the amount ofcompensation shall be resolved in the High Court.

6.2 National Disaster Act 1993

The objective of the Act is to provide for the organization and management neededto ensure mitigation of, preparedness for, response to and recovery from disasters inKiribati. "Disaster" is defined in the Act as the actual or imminent occurrence of anevent which endangers the safety or health of any community or persons in Kiribati,or which threatens to destroy any property in Kiribati, arising from natural andartificial causes.

Under the current allocation of ministerial responsibilities, the Office of the Beretitentiis responsible for disaster management. The National Disaster Council, whosemembers are appointed by the Beretitenti, provides advice to the Beretitenti.The Council must also prepare a National Disaster Plan to be approved by theCabinet. Section 9 provides that there shall be a National Disaster ManagementOffice to carry out disaster management and to deal with routine disaster-relatedmatters.

The local governments are also required to establish their own respective DisasterCommittees.

Section 21 of the Act provides for the payment of compensation and remunerationfor any action taken under the National Disaster Plan.

The Act also stipulates that funds or aid-in-kind received towards the disaster mustbe used specifically for those purposes, unless the government and the donor agreefor use of the funds for other purposes.

6.3 State Acquisition of Lands (Cap 95B)

The involuntary acquisition of land for resettlement/rehabilitation must be done inaccordance with the provisions of the Constitution and the State Acquisition of LandsOrdinance.

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The Minister of Environment, Lands and Agricultural Development is required toserve a notice of intention to acquire the land to the landowners and all otherpersons with interests in the land six months before the acquisition takes place.

The Ordinance lays down specific guidelines to the Court when assessingcompensation. The market value of the land must be taken into account; thedamage sustained by the landowner by reason of loss of trees or other crops; anydamage to the landowner's property or earnings caused by reason of having to movefrom the land; and the expense to the landowner of moving his home or businessfrom the acquired land.

The compensation should be made by the GOK, and the amount of compensationmust be agreed between the two parties. If there is no agreement between theparties, any party may refer the matter to the High Court for determination.

6.4 The State Lands Act 2001

The Act provides that a contract is made between the State and the registeredlandholder of State land given to the landholder and his family for settlementpurposes. The family is defined as consisting of the landholder, spouse, theirchildren, grandchildren and the couples' parents. The land can only be transferredwithin the family. The Act stipulates that the settlement should be conceived andexecuted as a sustainable development programme. The Act prohibits the sale ofthe land, and the land can be taken away from the family if it is abandoned for aperiod of six months. The State has a right of reversion on the land and discretion tore-allocate the plot to another family.

The State Lands Act does not affect lands registered under the Native Lands (Cap61).

6.5 Native Lands (Cap 61)

The Native Lands (Cap 61) contain the Lands Code and important provisions on thealienation of native land, including leases, sub-leases and sale.

6.6 Restriction on Alienation of Non-Native Lands Cap 63

The Ordinance restricts the alienation of non-native land, either by sale or lease.The GOK must be given first refusal to possess the land, which may be compulsorilyacquired, if necessary.

6.7 Lands Registration (Nikunau) Validation Act 1992

The Act provides for the appointment of a Commission to compile a replacementlands register for the island of Nikunau. The Commission would base its work onminutes of the Nikunau Lands Magistrate Court, the High Court and outcomes ofconsultations with the village people in their village maneaba, and submissions fromthe general public.

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On completion of the Commission's work, the findings would be published for publicinspection and objections. Thereafter, the new Nikunau Lands Register becomesindefeasible. The Nikunau Lands Magistrate's Court is empowered under the Act tomake the necessary amendments and corrections.

Each island has its own Lands Register which identifies the land plots and theregistered owners and interested parties of the said plots on the whole island. Eachisland has its own Magistrate Lands Court to deal specifically with land matters forthe island.

6.8 Land Registration (South Tarawa) Validation Act 1997

The Land Registration (South Tarawa) Validation Act 1997 gives legality to theprocess of compiling a new list of registered landowners in South Tarawa, the areathat extends from Bairiki village to Tanaea islet.

The South Tarawa Lands Register is important in the identification of registeredlandowners, the site location and size of the land plots likely to be used forresettlement.

6.9 Rent Review (Cap 90)

The Rent Review Ordinance (Cap 90) provides the procedures for the determinationof land rentals in respect of leased lands.

6.10 Foreshore and Reclamation (Cap 35)

The Foreshore and Reclamation Ordinance deals with the ownership of theforeshore and provides for the carrying out of reclamation schemes. Under this law,the foreshore belongs to the Government, subject to the public right of passing overit and any private rights over it. The Minister of MELAD may designate certain partsof the foreshore so that no coral, sand or mud can be taken without getting a licencefrom the Director of Lands.

The law also provides that any reclamation work must be approved by the Minister,subject to a public notice being issued in relation to the work so that affectedinterests may submit their concerns of the proposed work to the Minister.

The protection of the foreshore by the construction of seawalls, embankments orsimilar structures, and the reclamation of the foreshore for resettlement purposes aresubjected to the Foreshore and Reclamation Ordinance.

6.11 Land Planning (Cap 48)

The Land Planning Ordinance (Cap 48) deals with areas designated by the Minister.The Ordinance provides for a Central Land Planning Board and a local land planningBoard of members appointed by the Minister. The CLPB draws a General Land UsePlan for the designated area. The procedures for drawing up the GLUP are providedfor in the Ordinance, and require extensive public consultation and scrutiny.

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Once the GLUP has been approved by the CLBP, the GLUP is submitted to theLocal Land Planning Board (LLPB). The Teinainano Urban Council (TUC) is theLLPB for South Tarawa, and is required to make a Detailed Land Use Plan (DLUP).The DLUP is subject to public scrutiny for a fixed period before it goes back to theCLPB. The CLPB may then approve the draft plan with or without amendmentbefore it becomes the DLUP for the designated area.

Part IV of the Ordinance deals with Development Planning and the procedure forobtaining planning permission. "Development" is defined as the carrying out of anybuilding or works on the land. Such development must be considered and approvedby the Local Board before it is carried out. An application must be accompanied byplans or drawings indicating the site and description of the proposed development.A resettlement scheme will fall under the residential land use classification.

Any person unhappy with a decision of the Local Board may appeal to the CentralBoard. The ultimate appellate body on planning issues is the High Court.

6.12 Local Government Act 1984 and the relevant by-laws

Island Councils are established under the Local Government Act 1984, and are givenprescribed powers and duties, most of which relate to the resettlement planning andimplementation. The Island Councils consist of elected councilors from each villageor wards and representatives of women groups, youth groups and unimaneassociations on the island.

The Island Councils have also been closely involved in previous resettlementschemes, namely the rehabilitation of Council selected emigrants from the relativelyovercrowded islands in the Gilbert Islands group to the sparsely populated islands ofTabuaeran and Teraina in the Line Islands group.

All Island Councils are essential components of the institutional framework of KAP atthe island level. They have been active participants in the consultation process, andtheir direct involvement will be retained during the life of the project.

6.13 Environment Act 1999 and Regulations

The provisions of the Environment Act are relevant to the land acquisition andresettlement issues. The general environmental principles of sustainabledevelopment (6.1b), the environmental management and conservation of biologicaldiversity (6.2b), development control (13-17), review assessment (26-27) andmonitoring (28) are provided for in the Act.

The Environment Act also provides for a Schedule of prescribed developments(13.1) to comply with a comprehensive system of development activity using thetechnique of environmental impact assessment.

6.14 Housing Corporation (Cap 40A)

The Kiribati Housing Corporation (KHC) was established as a corporate body in1979. The functions of the KHC include the operation of Housing Loan Scheme,

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assistance in providing the housing needs for government employees, the provisionof assistance for other persons to undertake and carry out housing schemes inKiribati. The law defines housing scheme as a proposal for the construction ofseveral houses, laying out of roads, provision of drainage and other public services,open spaces and amenities.

The KHC should be an active participant in the planning and implementation of anyhousing scheme for the displaced people.

6.15 Public Finance (Control and Audit) (Cap 79)

The Public Finance (Control and Audit) (Cap 79) provides a legal framework for themanagement and auditing of public funds and other funds appropriated for theplanning and implementation of the acquisition/resettlement operations.

6.16 Public Health and Regulations (Cap 80)

The provision of public health services and compliance with public health regulationsare essential to the future sustainability of any resettlement. The Public HealthRegulations 1926 requires good sanitation, cleanliness, proper waste managementand provision of good potable drinking water. These requirements are not alwaysenforced, and life quality of resettled communities needs closer public health scrutinyand improvement.

6.17 Public Utilities (Cap. 83)

The Ordinance provides for the establishment of a Public Utilities Board (PUB) andcharged with the responsibility of providing electricity, water and disposal of sewage.The provision of these essential services in the planning and implementation ofresettlement areas is crucial to the development and enhancement of community life.

6.18 Conclusion

Kiribati has the necessary Constitutional and legal framework in place to satisfy theBank's requirements. The Kiribati Constitution and laws are quite explicit on thecompensation for the acquisition of private land needed in the public interest, namelythe rehabilitation of I-Kiribati adversely affected by the project. Affected people haveseveral avenues of recourse on compensation and resettlement arrangements,including final appeal to the court system and the High Court.

7. VOLUNTARY LANDS AGREEMENTS

The common forms of voluntary land use agreements in Kiribati, which are likely tobe applied in KAPII, are the leases, sub-leases, licenses, house plots, renting, landpurchase, land exchanges and gifts of land.

7.1 Lease Agreement

A lease is an agreement whereby the landowner (lessor) agrees to allow all or part of

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his/her land to be used by some other person (lessee) in return for an agreedamount of money in the form of rent.

A lease agreement shall be valid if it is done in accordance with the provisions of theLands Code. The nature of lease agreements varies from agreement to agreementdepending on the nature of the parties involved in the lease agreement.

7.2 Types of Leases

The Native Lands Cap 61 distinguishes between a Native and a Non-Native Lease.

7.2.1 Native Lease

A Native Lease is a lease of native land to another native where the term of the leasemust not exceed 21 years and the size of leased land not more than 5 acres.

A Native is defined in the Ordinance an aboriginal inhabitant of the Gilbert Islands ora descendant of an aboriginal inhabitant. A native lease agreement must besubmitted to the Magistrate Lands Court before it is approved.

The Magistrate Lands Court shall only approve the lease agreement if the Court issatisfied that the land is the registered property of the lessor, and the terms of theagreement are fair to both parties. The Court must also ensure that the lessor hassufficient land remaining to support himself and his family.

A Native Lease is usually registered in the Register of Native Leases, which is keptby the Court. There is a Magistrate Lands Court and Register of Native Leases foreach of the main Kiribati islands.

7.2.2 Non-Native Lease

A Non-Native Lease is any other agreement other than a Native Lease. Non-Nativeleases include a lease to a native for longer than 21 years and a lease to a non-native for any period of time.

Before a Non-Native lease is formally approved by the Magistrates Lands Court, theCourt must be satisfied that the lessor is the registered landowner, and that thelessee is allowed to lease the land in accordance with the provisions of the LandsCode.

Once the Court has approved the Non-Native Lease Agreement, the LeaseAgreement must have the statutory endorsement of the Minister responsible for theLands. The Minister must satisfy himself that the terms of the Non-Native Leaseare fair to both parties, that the lease is in the correct form, and the lease fees havebeen paid. Compliance with these requirements ensures that lease is registered in aRegister of Non-Native Leases.

The Register of Non-Native Leases includes government leases, Church leases, andCouncil leases. Government leases include most of the lands in Betio, Bairiki,Bikenibeu, Bonriki and Buota (all on South Tarawa).

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The possible displacement of people from the most vulnerable places, because ofrising tide and climate change, raises the point of security of tenure for the displacedpersons. The lease agreement or the sub-lease arrangement gives the displacedpersons the most secure form of tenure.

7.3 Terms of the Lease Agreement

A Lease Agreement Form contains the terms of the agreement relating to theidentification of the parties in the lease agreement, the site location and size of theleased plot, the obligations and responsibilities of the lessor and the lessee, whichinclude matters on compensation, monitoring and grievance redress.

Compensation arrangements are usually agreed before the signing of leaseagreements.

The Rent Review Act 1975 provides the legal framework for the compensation,monitoring and grievance redress of the parties to a lease agreement.

The agreed land rentals are paid annually, and must be reviewed every five years byboth parties. If the parties are unable to reach agreement, the matter may beresolved through Court action by either party.

An important aspect of these lease agreements relates to the principle of sub lease.

7.4 Sub-Lease

A sub-lease is an arrangement whereby the lessee leases part of the leased land, orthe whole leased land, to a third party (the sub-lessee).

The procedure for obtaining a GOK sub-lease is by application to the Minister forLands who will consider and make a decision on the application.

Prior to the Minister considering the sub-lease application, the Planning Board forplanning permission vets the application. This is followed by a survey of the site andpreparation of survey diagram. The applicant then prepares the sub-leasedocumentation, signs it and the application is forwarded for Ministerial approval.Once approved, the sub-lease is registered and given a number. The sub-lease rentis calculated, and the applicant is informed of the grant of a sub-lease (KLIS, p.15).

7.5 Licenses

A Licence is a right to occupy land, usually for a short period, granted by thelandowner. The arrangement may be either compensatory or gratuitous. A licenceissued with a provision for compensation is more secure than a gratuitous licence.

7.6 Village House Plots

House Plots are sites allocated to the householder, normally in the village area, bythe colonial administration to build a house and remain on the site provided that the

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householder will follow a prescribed course of action listed hereunder:* The householder may lease a house site from the landowner and pay rentals* The householder may allow the use of his land, pit or pond by the landowner

on a reciprocal basis as long the landowner provides a house site* The householder may wish to make a permanent exchange with the

landowner a piece of land, pit or bond in return for a house site* The householder may wish to purchase the house site from the landowner

The mutual arrangement between the landowner and the householder should bemade before the Lands Court. In the absence of such legal arrangement, the Courtshall decide on what should be done.

7.7 Customary Land Exchanges

Customary land exchanges often take place between two landowners. Theexchanges may involve lands on the same island or different islands. Thetransaction must be done in the court before the lands in question are registeredunder their respective new owners. The Island Councils may also be involved inland exchanges with private landowners.

7.8 Land Purchase

The purchase of land is becoming a common practice in Kiribati because of socio-economic reasons. In most cases, the landowner sells land to meet social andeconomic objectives. The buyer normally buys land for development purposes.

The Native Lands Ordinance dictates the purchase of land. The land cannot be soldwithout the prior consent of the other interested parties in the land, including thefamily members and the children.

The Native Lands Ordinance does provide for the alienation of native land as giftfrom the registered landowner to another person or organization, but suchtransaction must have court sanction to be valid.

7.9 Security of Tenure

The most important consideration for any rehabilitation of displaced people issecurity of tenure. It is therefore proposed that formal voluntary land agreements areencouraged in any resettlement scheme. In the case of State owned lands theprovisions of the State Land Act 2002 will apply. With respect to the acquisition ofprivate lands in the urban area, either the Islands Councils or the GOK makes ahead lease agreement with the registered landowners and subsequently make sub-lease arrangements with the resettled people.

The provision of a legal framework in leasing and sub-leasing private landguarantees security of tenure for tenants commensurate with adequatecompensation for the landowners. There are also legal requirements for theattainment of good health and the provision of financial means of enabling thedisplaced people to achieve a better life prior their displacement.

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8. VALUATION OF AFFECTED ASSETS

This section discusses the methods of valuing affected assets as practiced by theGovernment of Kiribati and the Bank guidelines on the valuation of affected assets.The Government of Kiribati uses the principles of replacement cost for loss of assetsand compensation rates for trees, crops, and agricultural pits. These principles arecompatible with the Bank's policies for the use of replacement cost andcompensation in the determination of compensation for loss of property andagricultural produce.

8.1 The Bank's Guidelines

The Bank approves two methods of conducting valuation of properties for PAPs.These methods are replacement costs and compensation.

The replacement cost approach is based on the premise that the costs of replacingproductive assets that have been damaged because of project activities or improperon-site management can be measured. The approach involves direct replacement ofexpropriated assets and covers an amount that is sufficient for asset replacement,moving expenses and other transaction costs.

8.2 GOK Methods of Valuation: legal and administrative framework

There are legal and administrative frameworks in place for conducting valuation ofproject affected assets, including loss of property and trees. The methods ofreplacement cost and compensation are used by the GOK in determiningcompensation.

The current schedule of rates of compensation is shown in Annex 2. These includecompensation rates for different types of assets, including agricultural plants andphysical assets.

8.3 Compensation Procedures and Civil Works Schedule

The Lands Management Division normally administers compensation after dueconsultations with the affected persons. The payment is normally paid after acomprehensive survey and inventory of the affected assets have been made, andlegal owners identified.

8.4 Compensation Rates for Loss of Crops and Trees

Cash compensation is paid for all crops and trees that are found on the land thathave been acquired. The compensation rates are determined by Cabinet taking intoaccount the fruit-bearing ability of trees. The compensation rates for the differentkinds of trees and crops are shown in the Schedule of Rates provided in Annex 2.

8.5 Compensation for Houses

The compensation for houses is made after the necessary consultations have beenmade with the owners and the GOK Civil Engineer. The Civil Engineer provides the

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estimated replacement cost of the house, with distinctions made between housingconstructed of local materials and those constructed of more permanent materials.The law requires that the market value of the land and the building be taken intoconsideration for compensation purposes of such assets.

8.6 Compensation for Project

Compensation for the resettlement projects will be made in accordance with existingGOK practice which is consistent with the Bank's guidelines on compensation.

9. ORGANISATIONAL PROCEDURES

This section discusses the organisational procedures in relation to the delivery ofentitlements and the implementation process. The planning and implementationprocesses involve a variety of tasks to be carried out mainly by the GOK and itsagencies. The participation of the people affected is an essential component ofthese activities. The institutional framework of these GOK ministries and agencies,and their respective functions in relation to the formulation of a lands andresettlement framework are described and discussed here.

9.1 The National Disaster Management Office

The National Disaster Act 1993 provides the legal framework for the setting up of themanagement strategies to deal with disaster-related issues. The Office of theBeretitenti (Office of the President) is responsible for the implementation of the Act,including the crucial role in the ultimate control and the coordination of activities ofgovernment ministries and agencies in carrying out their statutory functions andresponsibilities in disaster management and in the land acquisition and resettlementissues.

The National Disaster Act 1993 provides for the establishment of the NationalDisaster Management Office and the National Disaster Council. The NationalDisaster Management Office is located in the Office of the President and serves asthe secretariat for adaptation and disaster management.

The National Disaster Council, appointed by and accountable to the Minister,provides advice on all disaster-related matters, including the coordination ofGovernment and non-government agencies, relating to disaster mitigation,preparedness, response and recovery. The Council is also charged with thepreparation and formulation of a National Disaster Plan.

The National Disaster Plan must be approved by Cabinet, and be reviewedperiodically. All government ministries and agencies and non-government agenciesthat are formally assigned responsibilities under the National Disaster Plan mustmake their own plans and other arrangements necessary to fulfill such roles. TheLands Acquisition and Resettlement Policy Framework is an important component ofthe NDP.

The National Disaster Management Office works in collaboration with other25

government ministries and divisions with the technical capability and capacity to deal

with the lands acquisition and resettlement related issues.

The key government ministries include the Ministry of Public Works and Utilities(MPWU), the Ministry of Internal and Social Affairs (MISA), the Ministry of Financeand Economic Development (MFED) and the Ministry of Environment Lands andAgricultural Development (MELAD).

Their statutory functions and relationship to the lands acquisition and resettlementframework are discussed below.

9.2 The Ministry of Internal Affairs and Social Development (MISA)

The MISA is the parent government body for local governments and theirdevelopment programmes, including the resettlement project. MISA will liaise withall the Island Councils on the planning and implementation of the KAP and its

subprojects. The Island Planning Officer or the designated Island Project Officer willwork closely with MISA on the project. MISA will also cooperate with othergovernment agencies during the planning and implementation of the KAPprogramme.

9.3 The Ministry of Environment Lands and Agricultural Development(MELAD)

The MELAD is constitutionally responsible for the formulation and management of

government policies in relation to lands acquisition, environmental and conservationmatters, and agricultural development.MELAD is the home of the GOK Resettlement Committee, which coordinates officialactivities in relation to lands acquisition and resettlement, and environmentalscreening. With its expertise on environmental, land management and agriculturaldevelopment, the MELAD can take a leading role in the drawing up of RAPs underthe project, particularly through the Lands Management Division, the Environmentand Conservation division and the Agricultural Development Division.

9.3.1 Lands Management Division

The. LMD of MELAD is ultimately responsible for the payment of entitlements to

those affected in the project. This responsibility can be delegated to the Islands

Councils to administer payment of compensation entitlements to the PAPs on eachisland.

The LMD pays annual land rentals for government leases and sub-leases,compensation for crops, trees, and for loss of assets incurred in the course ofimplementing a government project. The LMD also pays compensation for theexcavation of sand and gravel from private property.

The rates for land lease rentals are determined by agreement between the lessor

and the leasee. The Government decides the compensation rates for destroyedcrops and aggregates unilaterally without consultation with the interested parties.

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The LMD is the competent government agency to be involved in land dealings withlandowners if the Government is to provide house sites for the displaced persons.

The LMD has trained and qualified surveyors to map out land boundaries and thedemarcation of house sites required for a resettlement scheme.

The LMD staff is always involved in on-going consultations with various stakeholderson land matters, including landowners, developers and settlers.The Kiribati Land Information System (KLIS) provides basic information on the keyprocesses involving land.The LMD had also undertaken public awareness programmes ultilising the servicesof mass media.

The LMD has the institutional capability and capacity to deal effectively with landsacquisition and resettlement issues.

9.3.2 Environment and Conservation Division

The Environment Act 1999 requires that development projects be subjected to anEnvironmental Assessment (EA).

The Lands Acquisition and Resettlement Project must therefore be subjected to anEA. The ECD staff are already active participants in the main Adaptation Project areaware of the necessity of an EA for any proposed resettlement scheme.

9.3.3 Agricultural Development

The Agriculture Division had been supportive of previous resettlement operationswithin the country, and the Division should be able to mobilize the necessaryresources, including technical assistance, to assist in the agricultural development ofnewly developed areas for resettlement.

9.4 Public Utilities Board

The provision of basic services, such as water, power and sewerage, are essential tothe development and management of a healthy and environmentally friendlysettlement. The provision for sites and services is crucial to the long-termsustainability of a new settlement. The financial implications for these must be takeninto account.

The PUB is already stretched with current commitments, and any extra load must becomplemented with the injection of the necessary resources into the PUB.

9.5 Civil Engineering Division

The Civil Engineering Division of the Ministry of Public Works and Utilities isresponsible for the design of coastal protection work, house plans, road works andvaluation of property.

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9.6 Ministry of Finance and Economic Development

The GOK financial inputs into the Project have to be included in the fiscal Budget tobe appropriated by the Maneaba Ni Maungatabu. The Project Budget will becontrolled and managed by the Administering Authority, but the Accounting Divisionof the MFED will direct the actual disbursements.

Financial contributions from the Bank and other sources will be managed inaccordance with the appropriate provisions of the Public Finance Act (Control andAudit) 1977.

9.7 Conclusion

The formulation of a Lands Acquisition and Resettlement Framework entails anappreciation of the multiplicity of tasks to be carried out by the various stakeholdersin the public service as well as in the private sector.

The GOK, through its various ministries and divisions, has the constitutional andlegal mandate to carry out its responsibilities and obligations, in relation to the landsacquisition and resettlement requirements. The existing management strategies andprocedures applied by the GOK are consistent with the policies of the Bank.

It is proposed that wherever possible, all of these statutory functions andresponsibilities are delegated to the local government level involving the IslandCouncils and the island communities, and the non-government organizations.

10. PROPOSED PROCESSES FOR DELIVERY OF ENTITLEMENTS ANDIMPLEMENTATION

The following discussion is about the actual institutional responsibilities under theproject for the screening process to identify the PAPs, actual formulation of theresettlement plan, implementation responsibilities such as payment of entitlementsand allocation of new sites, and monitoring.

10.1 Subproject Screening

The Island Project Officer (IPO) will guide the formulation of subproject applicationdocuments, but assistance is often augmented by contracted NGOs andgovernmental organisations. The formulation step is designed to ensure thepreparation of a subproject proposal that will be essentially complete and ready forappraisal or technical evaluation by the Island Development Committee. It istherefore important for the project formulator to screen social impacts at this point inthe subproject cycle, assess the number of PAPs, assess alternative locations for thesubprojects if possible, identify the means for compensation, and put in place plansfor monitoring the subprojects.

10.2 Consultation with the Island Council and Village Communities

Consultation with the Island Council and village communities will take place in the

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early process of resettlement planning and screening. The IPO will be assisted bythe Ministry of Internal Affairs and Social Development and the Ministry ofEnvironment, Lands and Agricultural Development, key government stakeholders inthe project, to establish contacts with island leaders to introduce the project, potentialresettlement impacts, and strategy or approach for compensation and rehabilitation.These early meetings will allow the exchange of opinions and collection of commentsuseful for the project.

During the course of these joint meetings the people will be informed of a preliminarysurvey to be conducted on the island to identify the people and communities to beaffected by the project.

10.3 Preliminary Survey

This survey will be conducted by the IPO with representatives of the community,including the women and young people. The survey will visit every affectedhousehold and the affected people will review the results.

Following the completion of site selection, it is then necessary to carry out detailedinventory and social and economic survey within the affected area.

10.4 Socio-Economic Survey of Settlement Impacts

An independent consultant will conduct this survey. The survey will provideinformation on the following:

* Number of residents, households affected by the project and residents whohave to relocate.

* Age, occupation, education, job location, standard of living, length of stay ofPAPs

* Type, size, condition, status, and value of land and building and other assetsprior to project

* Positive and negative impact on residents, assets and environment* Perception and aspirations of residents affected by the project* Current rule of law, including customary law, on land ownership, asset and

loss valuation and compensation.

10.5 Develop an Abbreviated Resettlement Action Plan

If the subproject entails impacts on the displaced population that are minor (impactsare considered "minor" if the affected people are not physically displaced and lessthan 10% of their productive assets are lost) or fewer than 200 people are displaced,an abbreviated resettlement plan may be designed and implemented.

An independent consultant can draw this plan with assistance by the MISA andMELAD.

An outline of an abbreviated plan is provided in Annex 3

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10.6 Consultation with Affected People

Consultations with the affected people will be an ongoing part of the resettlementand land acquisition process. Consultation will begin with an initial explanation of thenature of the project, including explanation of the processes for preparing subprojectproposals, the basic approaches to land acquisition and resettlement, grievanceprocedures, and so on. Consultation will continue during the process of formulationand negotiation of specific aspects of the compensation and resettlement process.Consultation will also include full discussion with affected persons during anyongoing negotiations and grievance processes.

The KAP Office and the appropriate local and central governmental organisations willreview the abbreviated RAP. The comments from the KAP, central and localgovernment agencies and the PAPs will be incorporated in the final abbreviatedRAP.

10.7 Disclose the RAP Policy to the Affected People

A meeting with the Island Council to discuss the adopted RAP takes place followedby a subsequent meeting with the PAPs and their village communities.

10.8 Sign Compensation Contract and Pay Compensation to the PAPs

The final step of resettlement implementation is payment of compensation. TheIsland Council treasurer on the island can do this in collaboration with the LandsManagement Division of the MELAD. In place of compensation, the Island Counciland the IPO will ensure that the PAPs receive the alternative compensation(equivalent size plot of land with the same land use capacity and / or other forms ofcompensation).

10.9 Resettlement Funding, Cost Estimate, and Contingencies

The resettlement budget for the proposed project components is the responsibility of

the Island Councils where the subprojects and the PAPs are located. In order to

ensure that the resettlement programme for each island is implemented smoothlyefforts will be made in developing realistic cost estimates for the resettlementprogramme. The detailed cost estimates will be based on comprehensive inventorysurvey of different impacts, and actual costs of compensation.

In order to ensure smooth implementation of the resettlement programme, the

resettlement budget will also include other related costs, such as survey and

planning, monitoring and evaluation, technical training and overall administration. A

contingency fund of 10% of the total resettlement cost will be set aside for coveringunforeseen expenses during the implementation phase.

The preparation of the resettlement budget will have to be done by the KAP ProjectOffice in cooperation with the appropriate government agencies, including the MISA,the MELAD and the MFED.

30

10.10 Grievance Redress Mechanisms

The affected people will be given several opportunities to review the survey resultsand compensation policies during the planning and implementation processes. Inthe course of the implementation, disputes may arise which require independentresolution. The affected will be informed of their rights and the grievance redressmechanisms available to them. These mechanisms include traditional forms ofconflict resolution, legal and political means. These mechanisms are discussed indetailed in Section 11 below.

11. GRIEVANCE MECHANISM

There are traditional, administrative, political and legal mechanisms available inKiribati for the resolution of grievances aired by the affected or the displaced personsin the planning and implementation of a project.

11.1 The Maneaba System

The involvement of the village elders or unimane under the maneaba system inresolving grievances over community projects has proven to be most effective. Themaneaba system is a meeting of the village people, notably the unimane, in thetraditional meeting hall (maneaba) to discuss village or island matters. Thetraditional authority and very strong influence of the Council of Unimane, in amediating role, is still an effective instrument for conflict resolution, particularly in theouter islands. This should be the first recourse for anyone with a grievance relatedto resettlement, land acquisition or related concerns.

11.2 The Administrative Procedure

After the Council of elders, the next recourse for aggrieved parties, during theplanning and implementation of the project, is the Administering Authority for theproject. Hence, the need for constant dialogue and communication between theAdministering Authority and the project-affected communities cannot be overemphasized.

The Administering Authority may not always be in situation to resolve the grievance,and the matter may be referred to the appropriate government agency to deal withthe matter.

The intervention of political resolution is not always desirable, but sometimes it isunavoidable.

11.3 Political Mechanism

The politicians cannot escape being involved in project complications if theadministrative machinery is unable to assist. The project-affected people will thenenlist the services of the local Member of Parliament or the Minister responsible tohelp them solve their problems.

31

11.4 Legal Redress

The legal means of resolving grievances is usually the last course of action for thePAPs. There are existing laws, which provide access for the PAPs to refer theirgrievances to the Court for an independent judgement.

The Kiribati Constitution safeguards the interests of the PAPs in relation tocompensation over their acquired property.

The Rent Review Cap.90 provides that any disagreement on lease rentals betweenthe parties shall be referred to the magistrate's court (section 5).

The Proceedings by and against the Republic (Cap. 76A) gives the right for a personto sue the Republic (section 3) to liabilities in tort committed by its servants oragents, and a breach of duties in regard to the ownership, occupation, possession orcontrol of property (section 4).

The Office of the People's Lawyer, funded from public funds, can provide free legaladvice and represent the PAPs in litigation matters.

11.5 The Bank Guidelines on Grievance Mechanism

The Bank requires that appropriate and accessible grievance mechanisms beestablished for the PAPs and their communities.

11.6 Conclusion

The grievance mechanisms provided by the traditional, administrative, political andlegal processes have proven to be appropriate and accessible to the ordinary I-Kiribati. The PAPs should know their customary and legal rights to pursue justice inthe course of being adversely affected in a development project. Further, theserights will be discussed at length in the public consultations to be held with each ofthe villages in which activities under KAPII are to be implemented.

12. PAP'S PARTICIPATION IN PROJECT

This section describes the mechanism for consultations with, and participation of,displaced persons in planning, implementation and monitoring of the Project.

12.1 National Consultations

There had been two separate National Consultations during the preparation of theKAP-1 focusing on public awareness and commitment for the Project.

The consultations involved the main stakeholders throughout the country, includingIsland Council representatives, traditional elders (unimane), women and youth. TheIsland Planning Officer was a participant during the second National Consultation.

The outcomes of the Second National Consultations included the prioritization of

32

vulnerabilities identified by the key island stakeholders, identification of the copingstrategies for the identified vulnerabilities, and the classification of adaptationstrategies.

12.2 Island and Village Consultations

Following the National Consultations, the Island Planning Officers and the Councilrepresentatives have an obligation for the conduct of Island-level discussions on theproject and its implications for those likely to be affected on their own islands.

12.3 Legal Public Notices

The law requires that the planning and implementation of any project must bepreceded by the issuance of public notice so that the affected people in the projectare given the opportunity to submit their objections or comments to the appropriateauthorities before a project is carried out. These mandatory public notices relate toland use planning, involuntary acquisition of lands, foreshore reclamation, andenvironmental assessment for projects.

12.4 Enhancing Active Participation of PAPs

The local governments and GOK ministries involved in the lands acquisition andresettlement are to be encouraged to comply with the Bank's guidelines and theGOK's existing statutory requirements for the issuance of appropriate public noticesduring the planning and implementation of the projects.

The enhancing of the active participation of the PAPs in the planning, implementingand monitoring of the Project will ensure the long-term success and viability of theProject and its components.

12.5 Conclusion

The consultative mechanisms with the PAPs exist in the legal and administrativeframeworks of the central and local government systems.

The participation of the PAPs may be more meaningful if they are directly involvedand invited to be active participants in the process rather than indirect participants.The participation of the PAPs in the planning, implementing and monitoring of theproject must be enhanced by the project management team.

13. PROJECT MONITORING

The arrangements for monitoring the Project by the GOK or the appointment ofindependent monitors to assess and evaluate the resettlement project are discussedhereunder.

13.1 The Bank's Guidelines.

The Bank requires that there is adequate monitoring and evaluation of the activities33

carried out in the resettlement instrument. The Bank requires internal and externalresettlement and evaluation exercises to be carried out in order to monitorresettlement implementation and ensure that affected people are compensatedadequately.

The internal monitoring system, to be done by the Project Administering Authority,aims to have an overview of the resettlement progress during projectimplementation. A monthly report for this purpose will be prepared. A quarterlyoverall resettlement progress report for the project will be submitted to the Bank.

13.2 GOK Monitoring

The National Development Co-ordinating Committee provides an internal monitoringsystem whereby projects are reviewed quarterly to measure progress, both in termsof physical progress and financial costs. The Committee comprises all PermanentSecretaries, and reports directly to the Cabinet.

Another monitoring device is through the political machinery when the Parliamentdebates the Budget, which provides the Project funding.

The Members of Parliament with interest in the project can also raise questions ormotions on the project during the meeting of Parliament.

Monitoring the progress of a project is an important activity that needs to be done toensure that the objectives of the project are fulfilled, and that the public funds and theoverseas development assistance for the project are spent properly and are welljustified.

13.3 Independent Monitoring

As the GOK will be the principal administering authority on the projects, it isimperative that an independent monitoring mechanism is put in place to allow anobjective and unbiased monitoring and assessment of the project activities. To thisend, it is proposed that a non-government organisation and independent assessorsare appointed to carry out an independent monitoring of the project.

14 CONCLUSION & RECOMMENDATIONS

This section reviews the overall findings in relation to the current GOK ResettlementPolicy and the World Bank's Resettlement Policy. A comparison of the two policyframeworks is summarised and recommendations are made to ensure that theGOK's resettlement and lands acquisitions policy framework meets the requirementsof the World Bank.

1. Principles and ObjectivesThe principles and objectives of resettlement policies of the World Bank andthe GOK are synonymous, but are more explicit in the Bank's documents in contrastto the GOK's implicit references.

34

It is proposed that the GOK adopts a more lucid pronouncement of its policies onlands acquisition and resettlement.

2. Resettlement PlansThe GOK and the Bank follow prescribed procedures in the planning andimplementation process. These include targeting and information dissemination,subproject formulation, survey and appraisal, approval, implementation, monitoringand evaluation (OP 4.12).

It is recommended that the GOK, through the Resettlement Committee, adapts itsprocedures to the more comprehensive and explicit procedures required by the Bankas outlined in the OP 4.12

3. Resettlement FundingThe GOK does provide for a resettlement budget administered by the MELAD. It isimportant to take note of the Bank's requirement for a national budget to take intoaccount the full costs of compensation as a result of Project implementation.

4. Eligibility CriteriaThe eligibility criteria promoted by the Bank looks closely at the needs of thedisadvantaged, particularly the women, the young people and the poor. This is inline with the current GOK's policy of enhancing growth and ensuring equitabledistribution of resources.

5. Legal BasisGenerally, there are no significant discrepancies between the GOK and the Bank'slegal requirements, which may warrant significant legal amendments from the GOKperspective.

The GOK has existing legislation to comply with the Bank's requirements. There isstatutory provision for both voluntary and involuntary land dealings, organizationalprocedures, valuation of assets and compensation procedures, and grievanceredress mechanisms.

6. Valuation of AssetsBoth the Bank and the GOK use the methods of replacement cost and compensationcosts in the valuation of assets affected in the course of project implementation.

7. Organisational ProceduresThe GOK, through its various agencies at the central and local government levels,has the statutory mandate to carry out its responsibilities and obligations relating tothe lands acquisition and resettlement operations. The current managementstrategies and procedures practiced by the GOK are consistent with Bank's policies.

Whilst the general resources, capability and expertise are not always available at thelocal government level, it is proposed that the implementation process on the landsacquisition and resettlement exercise are delegated to the appropriate personnel andorganizational groups at the island/village level.

35

It is recommended that the MELAD and the MISA conduct a joint training programmeon the concept and application of the Lands Acquisition and Resettlement PolicyFramework for the benefit of people to be actively involved in the projectimplementation.

8. Grievance Redress MechanismsThe Bank requires that appropriate and accessible grievance mechanisms beestablished for the PAPs.

The Project Management may wish to institute a mutually agreed grievance redressmechanism with the PAPs as an initial step before other grievance redressmechanisms, including court action, are sought.

It is recommended that such a Project/PAP redress grievance arrangement is agreedduring early consultations between the parties.

9. PAP ParticipationThe Bank strongly emphasizes the need for the full and. meaningful participation ofthe PAPs and their communities from the Project inception to its implementation.The GOK and the local governments are legally bound to comply with publicawareness, publicity and education of Project related issues.

It is recommended that more public awareness on the Project is made through themedia.

10. MonitoringThe Bank advocates the conduct of internal and external forms of Project monitoringto be undertaken. The GOK has its own inherent monitoring mechanisms; however,the provision of an independent evaluation exercise of the Project must also beexecuted by the GOK.

It is recommended that a consultant or an NGO be contracted to carry out anindependent evaluation of the Project.

36

REFERENCES

Crocombe, R.G. Land Tenure in the Atolls, IPS, USP, Suva, 1987

Government of Kiribati Kiribati Land Information System (KLIS), Land'

Management Division, MHARD, June, 2000



Republic of Kiribati Constitution 1979

The Laws of Kiribati 1981 (Revision) Volume III Caps. 69-103 and Supplement

The Proceedings by and against the Republic CAP. 76A

Public Finance (Control and Audit) CAP.79

Rent Review CAP.90

University of the South Pacific School of Law PacLII

37

ANNEX 1 SAMPLE OF LEASE AGREEMENT

REPUBLIC OF KIRIBATI

LEASE AGREEMENT

NAME OF LANDOWNER (LESSOR):

ADDRESS:

NAME OF TENANT (LESSEE):

NAME & NUMBER OF LAND:

ISLAND

VILLAGE

SIZE

AGREED RENT

RENT PER ACRE

TERM OF LEASE

CONDITIONS OF LEASE AGREEMENT

1. This lease is subject to Part VI of the Native Lands Ordinance Cap 61 and

the Rent Review Ordinance Cap 90.

2. The tenant agrees to pay the landowner the rent due in the first week of

January each year.

3. The rent shall be reviewed in accordance with provisions of the Rent

Review Cap 90.

38

4. During the term of the lease, the tenant shall be entitled to the exclusive ofall land, trees, plants and fixtures and shall pay all rates and taxes which may bepayable in respect of the demised land

5. The tenant shall not sublet the demised land or any part thereof.6. The land shall not be assigned or transferred without the consent of the

landowner or the community.

7. The tenant shall not do or permit or suffer to be done on the land or in thebuildings on the land anything in contravention of any bye-laws of the Localgovernment Council or any statutory or other provisions or regulations now orhereafter in force.

8. The landowner and the tenant shall include their successors in title.9. Any dispute arising from the above provisions will have to be settled

amicably between the parties. In the event of failing to reach mutual agreementbetween the parties concerned, the matter shall be referred to the Court.

39

ANNEX 2 SCHEDULE RATES OF COMPENSATION

These compensation rates for crops and buildings were decided by Cabinet on the

6th August, 1992.

The annual leased land rentals were determined by the GOK and landowners'

representatives on the 29'h November 2004.

These compensation rates and land rentals are current as at 1 st May 2005.

ASSET RATES

COCONUT TREE


Non-bearing with trunk $25.00

Non-bearing without trunk $10.00

PANDANUS TREE


Non-fruit bearing $12.00


TE BERO TREE


Non bearing $03.00


BREADFRUIT TREE

Fruit bearing BOKEKE $200.00


Non bearing $ 60.00

Non bearing without trunk $05.00

40

BWABWAIA TREE


Non bearing above 3ft high $02.50

BWAUKIN PER SQ.METRE $03.00

BANANA


Non bearing $03.00

KUMARA $5.00 per sq.m.

BUILDING

Permanent $100.00 per sq.m.

Semi-permanent $ 50.00 per sq.m.

Local building $ 35.00 per sq.m.

BWABAI PIT

Filling $02.08 per sq.m.

BWABAI PLANT $00.90 per lb.

ANNUAL LEASED LAND RENTALS

Commercial $1,807.20 per acre

Residential $1,480.82 per acre

Outer Islands $ 532.50 per acre

41

ANNEX 3 OUTLINE OF ABBREVIATED RESETTLEMENT PLAN

It is anticipated that most of the Pilot Island Adaptation subprojects will have

relatively minor resettlement and land acquisition impacts, and that an Abbreviated

Resettlement Plan will therefore be sufficient to meet Bank and GOK requirements.

An Abbreviated Resettlement Plan is appropriate where impacts on the entire

displaced population are minor (if the affected people are not physically displaced

and less than 10% of their productive assets are lost) or fewer than 200 people are

displaced.

An abbreviated plan covers the following minimum elements:

(a) A census survey of displaced persons and valuation of assets;

(b) Description of compensation and other resettlement assistance to be

provided;

(c) Consultations with displaced people about acceptable alternatives;

(d) Institutional responsibility for implementation and procedures for

grievance redress;

(e) Arrangements for monitoring and implementation; and

(f) A timetable and budget.

42

ANNEX 4 METHODOLOGY

This section describes the process followed in the preparation of the PolicyFramework.

The following tasks were undertaken in the collection of data:* Consultations with the National Coordinator, the Steering Committee and

Bruce Harris, the Senior Sociologist at the World Bank* Review of literature, including the review of relevant official documents of the

Government of Kiribati and the World Bank.* Consultations with the key GOK officials, including the Secretary MELAD

Tukaabu Teroroko, SAS MELAD Tebao Tanieru, SAS MFED KabureTemareti, and Director of Lands Management Tebutonga Ereata.

* Consultations with targeted community stakeholders, including landowners,developers, and likely displaced people.

* The use of the Internet to examine the land acquisition and resettlementpolicy framework exercises in other developing countries.

Consultations with Project Team

The Terms of Reference for the Lands Acquisition and Resettlement Frameworkwere discussed with the World Bank Project Team, and Bruce Harris, the SeniorSocial Scientist at the World Bank, made available a CD containing key Bankdocuments, the BP 4.12 on Involuntary Resettlement and OP 4.12 InvoluntaryResettlement (Revised April 2004). During his recent visit to Tarawa. The TORappears as Annex 5.

I attended a National Adaptation Steering Committee (NASC) meeting that wasuseful in allowing me to focus on the parameters of the study.

Review of Literature

A review was made of the relevant GOK files and documents, the Bank's OP 4.12

43

and the BP 4.12 documents, relevant Kiribati laws, and books on Kiribati land tenure.

GOK Documents

The Ministry of Environment Lands and Agricultural Development (MELAD) gave me

access to documents, which explained the current GOK resettlement principles and

objectives.

The minutes of the Resettlement Committee were also studied.

The GOK Resettlement Policy files and documents in relation to the recent relocation

of outer island people from the Gilbert Islands group to the Tabuaeran and Teraina in

the Northern Line Islands were examined. The rehabilitation of people to the

western islands was induced by over-population as opposed to climate change.

The Lands Management Office (LMO) kindly provided files and documents on land

management issues, such as land leases and compensation rates.

Sample copies of the lease agreement and sub-lease agreement were examined

and noted. These can be sighted in Annex 1.

The LMO produces a Kiribati Lands Information System (KLIS), a valuable manual in

understanding the various processes involved in the types of voluntary land

agreements discussed in Section 3 of the Report.

Review of Legislation

A review of the relevant laws on lands acquisition and resettlement issues was also

made. These included the Native Lands Ordinance (Cap.61), the Land Planning

Ordinance, the Local Government Act 1984, Public Utilities Ordinance

(Cap.83),Proceedings by and against the Republic (Cap.76A), and the Public

Finance (Control and Audit) (Cap.79).

44

Land Tenure in the Atolls

A useful simple description of land tenure in Kiribati is found in the Land Tenure inthe Atolls (1987).

Consultations with Government Officials

Discussions were held with the Permanent Secretary for MELAD (Tukabu Teroroko),the Senior Assistant Secretary MELAD (Tebao Tanieru), Director of Lands(Tebutonga Ereata), Senior Assistant Secretary, Ministry of Internal and SocialAffairs (Manikaoti Timeon) and Senior Assistant Secretary, Ministry of Finance andEconomic Development (Kabure Temareti). These officials had been closelyinvolved in the GOK resettlement planning and implementation, and are currentrepresentatives of their own Ministries on the Resettlement Committee.

The Permanent Secretary MELAD explained the Terms of Reference of theResettlement Committee, which is chaired by the Minister MELAD.

Tebutonga Ereata is principal adviser on general land matters and he explainedGOK policies not readily available in documents. Kabure Temareti was involved inthe planning and implementation of the resettlement of Tabuaeran and Teraina.They provided background information on the GOK principles on past resettlementoperations.

Consultations/lnterviews with Community Stakeholders

Consultations and informal interviews were also carried out with community and non-government organizations. These included dialogue with the old men or unimaneand office bearers of the Tokatarawa Association, and the Clerk of the TeinainanoUrban Council (TUC). Some of these people were participants in the NationalConsultations on the Kiribati Adaptation Project, and were fully conversant with theissues.

45

In discussions with the unimane, they commented that the most likely places to be

adversely affected by rising tide and climate change are the reclaimed and accreted

lagoon areas on South Tarawa, which historically were tidal flats.

The Internet

The use of the Internet to view similar Lands Acquisition and Resettlement

Frameworks in other developing countries was made.

The website on the USP Vanuatu Law Pac 1 provides a useful update of Kiribati

laws.

46

ANNEX 5 TERMS OF REFERENCE

Terms of Reference - Land Acquisition and Resettlement Policy Framework

[excerpt, omitting Background, Programme and Project descriptions]

2. Objectives of the Land Acquisition and Resettlement PolicyFramework

The Land Acquisition and Resettlement Policy Framework would be a writtendocument developed through a consultative process with appropriate stakeholders, andendorsed by the Government, which would clarify any voluntary land use agreementsamongst communities, and any involuntary land use or resettlement compensation to beprovided by the Government as a result of KAP II investments. The Policy Frameworkshould specify both the arrangements proposed for the Pilot Island AdaptationComponent (where agreements on land use would be made by cormrnunities) and thosefor the Priority National Adaptation Investments (wvhere investments would be publiclyfunded by the Government).

3. Tasks

The consultant would undertake consultations with key stakeholders and conductresearch targeted to include the following specific areas:

(a) Background Research

a. The consultant should become familiar with the World Bank InvoluntaryResettlement Operational Procedures 4.12 and Bank Procedure OP 4.12available at the Web links below:

h rtp:/ /wb]nOO018.xwold!banik.nni "Iisitutionnal /M\anulah/( lp\anuaI.nsf/(0/CA21)01 A4D1 H1)F5S()85256B1 90081 976?( )pcnl)ocurnent

Iittp. //wA-b1nQO 18 8voidhank.orp /nstituti ml i\!aiuals / )pMlnuzl.nsf/O/ 1 ')()9036131 6C(A 1 \52685256B19 I0908(191 \-( )p]IL)1DCui LI It

b. In addition, the consultant should obtain copies of best practiceexamples of Land Acquisition and Resettlement Policy Frameworks fromM\r. Bruce Harris, Senior Sociologist at the World Bank(Lharris(@'worlclhaink.-ori-,). The consultant should liaise regularlv wvithM\r. Harris via e-mail during his/her work.

47

(b) Assess the current nature of land ownership and rights of use in the

Kiribati context, including:

a. Traditional rules and understandings concerning land ownership and use;

b. Processes of decisionmaking within the community with regard to land use

and with regard to the resolution of disputes concerning land ownership or

use;c. Identification of any practices of voluntary donations of land for public

purposes, the circumstances under which such donations have traditionally

occurred (if they have occurred) and an assessment of any mechanisms

designed to ensure such donations are, in fact, genuinely voluntary;

d. The role of formal institutions, such as Magistrates Court (Land Court) and

the High Court, in land oxvnership, use and dispute resolution, and the

relationship between formal and customary institutions;

(c) Assess the nature and operation of the existing laws, regulations and

procedures of the Government of Kiribati for land acquisition and/or

resettlement (permanent or temporary) if such is required during project

implementation, with special attention to procedures for the kinds of land

ownership and use identified above. This should include, but not necessarily be

limited to, review of the Native Lands Ordinance (Cap. 61, Revised Edition

1977), Neglected Lands Ordinance (Cap. 62, Revised Edition, 1977), Non-

Native Land Ordinance (Cap. 63, Revised Edition, 1977) and Magistrates'

Courts Ordinance (Cap. 52, Revised Edition, 1977).

(d) Review, if available, actual instances in which government activities have

resulted in land acquisition and/or resettlement and assess the practices

and outcomes with respect to relocation, compensation and rehabilitation

followed in such instances, including the extent to which such practices are

consistent with formal legislative and regulatory guidelines;

(e) Assess the consistency between borrower laws, regulations and practices

and Bank policy requirements as contained in OP and BP 4.12 and define

measures to bridge any gaps between them;

(f) Develop monitoring and implementation procedures, including

consultative mechanisms with key stakeholders and grievance procedures.;

(g) Draft a Land Acquisition and Resettlement Framework which will

accommodate existing land ownership and use patterns and practices (including

traditional and customary values and Government policies, legislation and

procedures on land acquisition and resettlement) while meeting the World Bank

policy requirements.

48

4. Outline of the Report

The Land Acquisition and Resettlement Policy Framework prepared by the consultantshould cover the following elements.

1. The process followed in the preparation of the Policy Framework.2. A brief description of the project and components for which land use,

acquisition and resettlement are likely to be required, and an explanation of whya resettlement plan cannot be prepared by project appraisal (the preciseinvestments may not be known);

3. For voluntary land use agreements made between communities (in Component2), the process of conmmunity agreement, signed forms, compensation (if any),monitoring and grievances involving the use of land (refer to examples providedby Bruce Harris).

4. For any resettlement or land acquisition under Component 1, principles andobjectives governing resettlement preparation and implementation;

5. A description of the process for preparing and approving resettlement plans;6. Estimated population displacement and likely categories of displaced persons, to

the extent feasible;7. Eligibility criteria for defining various categories of displaced persons;8. A legal framework for reviewing the fit between borrower laws and regulations

and Bank policy requirements and measures proposed to bridge any gapsbetween them;

9. Methods of valuing affected assets;10. Organizational procedures for delivery of entitlements and implementation

process.11. A description of grievance mechanisms;12. A description of the arrangements for funding resettlement, including the

preparation and review of cost estimates, the flow of funds, and any contingencyarrangements;

13. A description of mechanisms for consultations with, and participation of,displaced persons in planning, implementation and monitoring, and;

14. Arrangements for monitoring by the implementing agency and, if required, byindependent monitors.

The consultant should refer to World Bank Procedures OP and BP 4.12, examples ofgood practice Framewvorks, and consult with Mr. Bruce Harris at the World Bank, shouldfurther guidance be required.

5. Arrangements

The consultant will report to the Adaptation Technical Team and Steering Committee,through the National Coordinator, Mr. Kaiarake Taburuea. He wxill also liaise closelyws ith the NAPA Team Coordinator, Mr. Nakibae Teuatabo and Mr. Andrew Teem.

The consultant should also work closely with the consultant who will be simultaneously

49

working on the preparation of the Environmental Analysis and the consultant

responsible for the Legal and Regulatory Review.

6. Facilities Provided

A budget will be provided for consultant fees and per diem if the consultant is not a

resident of Kiribati. The Adaptation Working Group and the National Coordinator will

assist in setting up contacts in the relevant ministries, who will provide the necessary

documentation and will be available for information.

7. Timeframe

One person-month during January - March 2005 .

50