updated resettlement plan and due diligence report...7.2 review of compensation and other...

Updated Resettlement Plan and Due Diligence Report

April 2019

Myanmar: Mandalay Urban Services Improvement Project

Prepared by Project Management Office Mandalay City Development Committee for the

Asian Development Bank.

CURRENCY EQUIVALENTS (as of 10 April 2019)

Currency unitMMK1.00

$1.00

– kyats (MMK)= $ 0.00066 = MMK1501.50

ABBREVIATIONS

ADB AFDBOD5DBDBODDDEDECDEIAEMPESHSGESIAPGISICBMONRECNCBO&M PIBPISCPMOPMSPPMSRPSIUSDWTPWWTP

– Asian Development Bank– Agence Française de Développement– Biochemical Oxygen Demand (5 days)– Design and Build– Design, Build and Operate– Due Diligence– Detailed Engineering Design– Environmental Conservation Department– Environmental Impact Assessment– Environmental Management Plan– Environment, Social, Health and Safety– Gender Equality and Social Inclusion Action Plan– Geographic Information System– International Competitive Bidding– Ministry of Natural Resources and Environmental Conservation– National Competitive Bidding– operation and maintenance– Public Information Booklet– Project Implementation Support Consultant– Project Management Office (MCDC)– Project Monitoring System– Project Performance Management System– Resettlement Plan– Site Inspector– United States Dollar– Water Treatment Plant– Wastewater Treatment Plant

NOTE

In this report, "$" refers to US dollars unless otherwise stated.

This updated resettlement plan and due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

SAFEGE SAS - SIÈGE SOCIAL Parc de l’Ile - 15/27 rue du Port 92022 NANTERRE CEDEX www.safege.com

CONSULTING

Mandalay Urban Services Improvement Project, Consulting Services for Project Implementation Support, No. Loan 3316-MYA, Contract No. MYWW/40.0

Updated Resettlement Plan & Due Diligence Report-

August 2017

Updated Resettlement Plan & Due Diligence Report-August 2017 Mandalay Urban Services Improvement Project, Consulting Services for Project Implementation Support, No. Loan 3316-MYA, Contract No. MYWW/40.0

Document Quality Check IMP411

Project number: 16 IAS 005

Project name: Mandalay Urban Services Improvement Project, Consulting Services for

Project Implementation Support, No. Loan 3316-MYA, Contract No. MYWW/40.0

Document name: Updated Resettlement Plan & Due Diligence Report

Version

Writer

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COMMENTS

1.0 Pramod Agrawal 19/08/17


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TABLE OF CONTENTS List of Tables List of Figures Annexes Abbreviations and Acronyms Glossary of Terms and Definitions Executive Summary

1. Introduction 01 1.1 Background 01 1.2 Description of the Project 01 1.3 Wastewater Management & Urban Drainage 01 1.4 Updated Resettlement Plan 02 1.5 Rationale for Due Diligence 05 1.6 Due Diligence Methodology 05 1.7 organization of the Report 06

PART I - UPDATED RESETTLEMENT PLAN

2. Resettlement Impacts 07 2.1 Measures Taken to Avoid or Minimize Impacts 07 2.2 Methodology for Resettlement Impact Assessment 07 2.3 Description of Resettlement Impacts and Resettlement Plan 07 2.4 Temporary Impacts 11 2.5 Relocation Requirements 11 2.6 Summary of impacts 11

3. Socioeconomic Characteristics 12 3.1 Socioeconomic Profile of Affected Persons 12

4. Entitlements, Assistance and Benefits 13 4.1 Key Principles of involuntary Resettlement 13 4.2 Eligibility 14 4.3 Resettlement Category 15

4.4 Compensation Principles and Entitlements 15 4.5 Addressing Gender Issues 19

5. Estimated Resettlement Cost 20 5.1 Unit Prices for Cost Estimation 20

6. Institution Arrangements 23 6.1 Mandalay Regional Government (MRG) 23 6.2 MCDC 23 6.3 Project Management Office (PMO) 24 6.4 Project Implementation Consultant 25


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PART II – DUE DILIGENCE 7. Main Findings of Due Diligence 28 7.1 Scope of Land Acquisition 28 7.2 Review of Compensation and Other Entitlements 28 7.3 public Consultation and Participation 29 7.4 Disclosure 31 7.5 Grievance Redress Mechanism 31 7.6 Institutional Capacity 33 7.7 Monitoring and Supervision 33

8. Conclusions 35 9. Outstanding Issues, Risks and Recommendations 38 9.1 Replacement Land 38 9.2 Recognition of Squatters & Impacts of WWTP 38 9.3 Public Consultation and Information Dissemination 38 9.4 Disclosure 39 9.5 Grievance Redress Mechanism 40 9.6 Monitoring 40

Annexes Annex A Land Holding map of WWTP Site 42 Annex B List of Landowners and Compensated Affected Area 43 Annex C1 WWTP List of Owners and Affected Structures 44 Annex C2 WWTP Boundary 46 Annex C3 WWTP Selected Affected Structures 47 Annex D List of Landowners and Compensation for Land 48


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List of Tables Table 1.1 Project Components and Resettlement Impacts 03 Table 2.1 Category of Affected Structures 10 Table 2.2 Summary of Resettlement Impacts 11 Table 4.1 Entitlement Matrix 17 Table 5.1 Applicable Relocation Assistance for Loss of Structures 20 Table 5.2 Estimated Resettlement Cost 21 Table 8.1 Summary of Due Diligence Findings 36

List of Figures Figure 1.1 Wastewater and Drainage Management Components 04 Figure 2.1 Alignment of Wastewater Mains 08 Figure 6.1 Project Management Office organization 27


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Abbreviations and Acronyms

ADB

AFD

Asian Development Bank

Agence Franchise de Development AH Affected Households

AP Affected Persons

CBO Community Based Organization

COI Corridor of Impact

CSS

DD

Country Safeguards System

Due Diligence (Report)

DMS Detailed Measurement Survey

EA Executing Agency

EMA External Monitoring Agency

GOM Government of Myanmar

GRC Grievance Redress Committee

GRM Grievance Redress Mechanism

HH Households

IA Implementing Agency

IOL Inventory of Losses

JICA Japan International Cooperation Agency

MCDC Mandalay City Development Committee

MRG Mandalay Regional Government

NGO Nongovernment Organization

PIB Public Information Booklet

PMO Project Management Office

PIC Project Implementation Consultants

RCS Replacement Cost Study

RP Resettlement Plan

ROW Right of Way

SES Socio-Economic Survey

SPS Safeguards Policy Statement (2009)

TOR Terms of Reference

WB World Bank

WTP Water Treatment Plant

WWTP Waste Water Treatment Plant


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Glossary of Terms and Definitions

Compensation –

Payment given in cash or in kind to affected persons (APs) at replacement cost or at current market value for assets and income sources acquired or adversely affected by the project.

Cut-off date – The date of completion of census, inventory of losses (IOL) of project affected persons, and as announced officially by the MCDC and the Project Management Unit (PMU). Anyone who occupies or encroaches into the defined boundaries of the Project area after this date will not be entitled to compensation and other assistance for affected assets and incomes.

Detailed Measurement Survey (DMS)

–

With the use of approved detailed engineering drawings, this activity involves the finalization and/or validation of the results of the IOL, severity of impacts, and list of APs done during the preparation of this resettlement plan (RP).

Affected person (AP) Economic Displacement

– -

Refers to any person or persons, household, firm, private or public institution that, on account of acquisition of their land and other fixed assets or due to the changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (e.g., residential, commercial, agricultural, and/or grazing land), water resources or any other fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without physical displacement. Loss of land, assets, access to assets, income sources, or means of livelihood as a result of (i) involuntary acquisition of land, or (ii) involuntary restriction on land use or on access to legally designated parks and protected areas.

Entitlements – Refers to a range of measures, such as compensation in cash or in kind, income restoration support, transfer assistance, relocation support, etc., which are provided to the APs depending on the type and severity of their losses to restore their economic and social base.

Inventory of Losses (IOL)

– This is the listing of assets as a preliminary record of affected or lost assets during the preparation of the RP where all fixed assets (i.e., land used for residential, commercial, agricultural purposes; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; standing crops and trees with commercial value; etc.) and sources of income and livelihood inside the COI are identified, measured, their owners identified and their exact location determined. The severity of impact on the affected assets and the severity of impact on the livelihood and productive capacity of the APs are likewise determined.

Land acquisition

–

Refers to the process of acquiring land whereby an individual, household, firm or private institution is forced by a public agency to involuntarily alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs.


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Physical Displacement

-

Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restriction on land use or an access to legally designated parks and protected areas.

Relocation – This is the physical displacement of a DP from his/her pre- project place of residence and/or business.

Replacement cost – Means the amount in cash or in kind needed to replace an asset in its existing condition, without deduction of transaction costs or depreciation and salvageable materials, at prevailing current market value at the time of compensation payment.

Replacement Cost Study

– This refers to the process involved in determining replacement costs of affected assets based on empirical data.

Resettlement Plan – This is a time-bound action plan with budget, setting out the resettlement objectives and strategies, entitlements, activities and responsibilities, resettlement monitoring, and resettlement evaluation.

Severely affected Households

– This refers to AHs who will (i) lose 10% or more of their total productive and generating assets, with or without physical displacement.

Vulnerable groups – These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized due to the project and specifically include: (i) female-headed households with dependents, (ii) household heads with disabilities, (iii) households falling under the generally accepted indicator for poverty, (iv) elderly households who are landless and with no other means of support, (v) landless households, (vi) ethnic minorities.


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Executive Summary The Government of the Republic of the Union of Myanmar has requested the Asian Development Bank (ADB) a project preparatory technical assistance (TA) to prepare the Mandalay City Urban Services Improvement Project. The project is expected to help Mandalay increase its development potential as a regional economic growth centre. Originally the project components included: (i) Water Supply system improvements; (ii) Wastewater Management & Urban Drainage; and (iii) Institutional capacity strengthening and public awareness raising. During the PPTA stage, resettlement impacts for both the water supply and the wastewater management & drainage components were assessed and a RP prepared. However, following completion of PPTA, Water Supply component was excluded from the ADB loan. The same will now be funded by the AFD as a standalone project. To meet the ADB’s SPS requirement, updated RP is prepared to take into account changes in the component, alignment, land use on some of the plots earlier required for WWTP. Taking into above factors the boundary of WWTP is shifted further north. The revised boundary until the road shoulder will cause adverse impacts on several temporary structures.

Following revision of WWTP boundary, MCDC began acquisition of land parcels in February 2017 and by July 2017 all but one land parcels were acquired based on the negotiated settlement, and compensation amount paid. The remaining one land owner had opted for land-for-land. MCDC is in the process to identify replacement land. As the land acquisition for the WWTP site has already been completed, there is a need to conduct due diligence. The main objective of the DD is to assess whether or not the land acquisition was conducted according to the policy provisions specified in the RP (June 2015), and identify any potential gaps between the RP and its implementation. Following revision of the WWTP boundary and alignment for the wastewater mains, the assessment of resettlement impacts conducted for the updated RP. Summary of impacts is shown in the table below. Proposed wastewater main will not cause any permanent impact on any private assets. Updated RP includes estimated cost for the WWTP component that will result in permanent impacts: acquisition of 11.37 acre of agriculture land owned by 9 households, and relocation and other assistance to 24 households who will be impacted by loss of 32 structures.

Summary of Resettlement Impacts Type of Loss Description No.

of HH

No./Qty

1.Land Agricultural Land 9 11.73 acre

2.Structure Main Structures 321 4510 sft.

3. Loss of crops Corn, groundnut, green gram, vegetables

9 11.73 acre

1 One structure was owned by the affected land owner but it has been demolished. 32 structures are owned by 24

households.


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4. Loss of employment

Tenant cultivators and labourers - -

5. Loss of business incomes

Loss of income from shops 14 -

6.Trees Fruit trees - -

7. loss of Public Utilities

33 kVA Electric Line (about 1 km) and 6 electric poles

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Level of impact: Household affected by entire loss of structure

24 -

Severally affected HH due to entire loss of land holdings

9 -

Total No. of Affected HH: Land owners: 9 Owners of structures on public land: 24

33 -

Additional detailed socio-economic survey for the updated RP was not conducted as the acquisition of land for WWTP has already been completed. Further, income rehabilitation for households affected by loss of agriculture land is not proposed because all the land owners have other business interests and loss of land will not cause any appreciable impact on their household incomes or living standards. Summary of conclusions drawn from due diligence include the following: a. Land acquisition and compensation. Land acquisition for the WWTP site has been completed except for the provision of replacement land to one landowner. The land acquisition procedure followed local practices and completed on willing buyer-willing seller basis. Apart for compensation, no other allowances and/or assistance paid. Review of compensation paid and their entitlements according to the provision of the resettlement policy for the project indicates that the compensation amounts are sufficient to cover all the entitlements. Six out of the eight landowners interviewed expressed full satisfaction with the compensation amounts. b. Public consultation and Information Dissemination. MCDC and PMO has not conducted any formal project related public information dissemination either in local and national newspapers or through radio and TV announcements. Public Information Booklet (PIB) describing above information is yet to be distributed to members of general public. PMO has not even considered necessary to inform affected households who will be affected by loss of structures. c. Grievance Redress Mechanism. Grievance Redress Mechanism has not been put in place and GRC, as was suggested, has not been established. However, in a recent meeting with the Vice Mayor, agreement is reached on an alternative grievance redress mechanism which is expected to be implemented soon. d. Disclosure. MCDC/PMO has not disclosed English and Myanmar language RP locally at MCDC office, respective townships/wards, and the RP is not been uploaded on MCDC website/facebook. e. Institutional Capacity. The capacity assessment in the PMO in general, and in the designated social safeguards staff in particular is very limited. Designated social safeguards staff in the PMO is come from other departments and work at the PMO on an ad hoc basis.


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f. Monitoring. There is no formal policy on monitoring in Myanmar. Therefore, no systematic monitoring of the project impacts on APs is conducted in the project. PMO has not contracted External Monitoring Agency or consultant. DD report summarized outstanding issues, risks and recommendations together with target date for MCDC/PMO to take remedial actions. In Myanmar, current land acquisition practices do not recognize any claim by squatters. There is therefore, serious risk that MCDC and PMO may not inform households affected by loss of structures due to WWTP about their entitlements for compensation, allowances and other assistance as provided for the policy and evict them without providing any assistance. This will be serious non-compliance of the agreed policy. PMO is recommended to fully comply with the provisions of the agreed resettlement policy in the project and provide suggested assistance and allowances these affected households are entitled to.


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1 Introduction

1.1 Background

Mandalay is the second city and capital of the central region and is considered by many to be the capital of Myanmar culture and the Buddhist religion. It is the second largest city in Myanmar with a population of approximately 1.25 million and is on the crossroads of routes linking Laos, Cambodia, Thailand and Vietnam to India and is also on the link between China and the Andaman Sea. Mandalay is growing at a very high rate of just under 3 percent per annum since 1990.

The Government of the Republic of the Union of Myanmar requested the Asian Development Bank (ADB) a project preparatory technical assistance (TA) to prepare the Mandalay City Urban Services Improvement Project. It is within this context that the Union of Mandalay together with the ADB has placed the Mandalay City Urban Services Improvement Project within the current lending programme. The project is expected to help Mandalay increase its development potential as a regional economic growth centre.

1.2 Description of the Project

The proposed project will improve urban environment and public health in Mandalay city. Originally the project components included: (i) Water Supply system improvements, (ii) Wastewater Management & Urban Drainage, (iii) Institutional capacity strengthening and public awareness raising. During the PPTA stage, resettlement impacts for both the water supply and the wastewater management & drainage components were assessed. Except for the WWTP component, all the other project component and sub-components were expected to cause only limited resettlement impacts, both temporary and permanent. However, following completion of PPTA, Water Supply component was excluded from the ADB loan. The same will now be funded by the AFD as a standalone project.

1.3 Wastewater Management & Urban Drainage

This component will provide centralized wastewater collection and treatment system, and improved septage management for Mandalay city. Specific interventions for Waste Water include:

a. Installation of interceptors and trunk sewers.

i) 27.6 km of tertiary and secondary level wastewater networks ii) 7.95 km of box culvert within the Shwe Ta Chaung Canal; iii) 11.4 km (500 to 800 mm) along Thin Gazar Creek iv) 7.4 km of box culvert within Mingalar/Nehtauchaung canal up to Shwe Ta Chaung Canal v) Sewer main (1400 mm) connecting pumping station at Ket Kyaw to the proposed WWTP site located at Yin Taw village track Plot No. 608, Amarapura Township.

b. Thin Gazar Pump Station at the corner of 89th and 38th street with maximum capacity of 400 l/s pumping to Shwe Ta Chaung Interceptor

c. Pumping Station at Ket Kyaw.


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d. Waste Water Treatment Plant with 75,000 m3/day capacity in the first phase located south of Kandawgyi Lake at Yin Taw village track plot No. 608, Amarapura Township

Wastewater and drainage components are summarized in Table 1.1 and shown on Figure 1.1.

1.4 Updated Resettlement Plan

The RP, consistent with the ADB SPS (2009) requirements, was duly endorsed by the MCDC in June 2015 and approved by the ADB in 2015. To meet the ADB’s SPS requirement, the RP prepared during the PPTA stage needs to be updated prior to resettlement implementation to take into account any changes in the component, alignment and/or land requirements. For the wastewater management & drainage component following significant changes have taken place since the PPTA stage requiring revision/updating of the RP:

i) Following cadastral and topo surveys for the WWTP site carried out during November 2015-January 2016 for preparation of bidding documents, the boundary of the WWTP site was adjusted to exclude some waterlogged plots at the southern end of the site;

i) Changes in the land use including construction of a petrol pump on the site originally designated for WWTP site;

ii) During the PPTA stage tentative alignment for the sewer mains connecting the proposed WWTP plant was proposed under the Old Shwe Ta Chaung canal and along the existing road traversing Aye Zayet, Wat Kone and Dan Tabin villages. However, following completion of the PPTA and based on the field investigations the alignment was changed and currently it is proposed along the Kenkangawgyipat Road and continuing on the Myopatt Road.

iii) Proposal to locate pumping station at the south-eastern end of the site for pumping of flood waters to other side of the dyke in to the Ayayarwaddy River basin.

The WWTP boundary was adjusted to take into consideration above factors and shifted further north. The revised boundary of the WWTP site to begin from the end of road shoulder, instead of end of the slope as was previously suggested. The Extension of the WWTP boundary until the road shoulder will cause adverse impacts on several temporary structures that were not included in the original RP. Additionally, some land parcels are now excluded from the original plan while there is additional of some new land parcels. This updated resettlement plan (RP) describes potential permanent impacts caused by the acquisition or repossession of land for various components and temporary impacts during the construction phase; a summary socioeconomic information of affected persons (APs) due to the impact on illegal temporary structures; a summary of applicable policy objectives and principles; entitlements for compensation and other assistance to affected persons for their losses; and estimated cost of resettlement2.

2 Description of socio-economic characteristics of affected land owners, review of existing laws and regulations, public consultation, grievance redress mechanism, monitoring and supervision as presented in the RP (2015) have not varied much and are not repeated in this report. Some of these issues are covered under Part II of the report, under due diligence. The focus of the updated RP is on providing description of impacts taking into consideration revised impact assessment, revised entitlement matrix and Outcome of the due diligence review.


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Table 1.1: Project Components & Resettlement Impacts

(August 2017)

No. Project Components

Technical Details Potential Impacts

1. Wastewater & Flood Management

1.1 Pumping Station One. Area: 0.5 ha. At the corner of 89th and 38th St. Next

to solid waste collection centre. Along eastern bank of Thin Gazar Creek. MCDC land. Mahar Aungmyae Township.

1.2 Pumping Station at Ket Kyaw

Fro pumping of wastewater NCDC Land No impact on adjoin private land & structures

1.3 Wastewater Treatment Plant (WWTP) including treatment facilities for septic tank effluents

Located at South of Kandawagyi in Lake Yin Taw village track Plot No. 608, Amarapura Township Area: 11.73 acre

Area: Approx. 11.73 acre Land acquisition completed. 9 land owners affected.

1.4 Pumping station for flood water

At southern-most part of the WWTP site

Part of WWTP site and the area between road shoulder and WWTP boundary. No additional LA required. Several existing structures on the public land will be affected

1.5 Main Sewerage Line to WWTP site

Total length 4.48km LA not necessary but temporary impacts on some structures along the Kenkangawgyipat and Myopatt Road (dyke) expected

1.6 Collector Mains and Interceptors

Ngwe Ta Chaung, Mingalar & Shwe Ta Chaung Canals; Thin Gazar Creek; and some parts of 22nd Street, Sein Pan Road, Mahasi Meditation Road, Tar Tein road and Metta Lane. Approx. 54.35 km length

Mostly within the ROW. Land acquisition not envisaged. Temporary Impact on vendors, semi-permanent and temporary structures along the canals.

1.7 Dredging of drains and canals

Precise length not known LA for dredging activities not necessary. Dredged material is proposed to be disposed on the WWTP site. At this stage any LA for disposal of dredged spoils not known

1.8 Pilot solid waste Collection Centre

Approximately 0.15-0.2 ha All collection centres are likely to be on MCDC land. Acquisition of private land is not envisaged.


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Figure 1.1: Wastewater and Drainage Management Components


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1.5 Rationale for Due Diligence

Following revision of WWTP boundary, MCDC began acquisition of land parcels in February 2017 and by July 2017 all but one land parcels were acquired based on the negotiated settlement and compensation amount paid. The remaining one land owner had opted for land-for-land. MCDC is in the process to identify replacement land. As the land acquisition for the WWTP site has already been completed, there is a need to conduct due diligence. The main objective of the DD is to assess whether or not the land acquisition was conducted according to the policy provisions specified in the RP (June 2015), and identify any potential gaps between the RP and its implementation. In doing so, this DD review identifies the areas/cases where land acquisition, resettlement and compensation, public consultation, disclosure, and grievance redress fall short of RP provisions and ADB’s SPS requirements. Gaps, if any, are identified, clearly described and measures to address gaps/non-compliance issues are proposed. In addition, this DD review will look at the current status and levels of livelihoods restoration among the APs after the project’s land acquisition. In cases where this DD review identifies that APs are lacking sustainable livelihood resources, additional assistance for ensuring APs’ income and living standards restoration will be proposed to ensure the outcomes of the project resettlement activities are consistent with the ADB’s SPS requirements. The Due Diligence report is integrated with the updated RP to cover the following key issues:

• Compliance of the project implementation with resettlement policy and procedures specified in the RP;

• Disclosure, public consultation and participation as specified in the RP;

• Status of the project’s grievance redresses mechanisms, and outstanding/pending grievance issues and Aps’ satisfaction;

• The level of compensation to ensure APs fully restore their livelihoods; and

• Monitoring of the project’s resettlement implementation.

1.6 Due Diligence Methodology

1.6.1 List of Activities

This DD review covered the households affected by acquisition of land and other assets for

the WWTP. Activities in conducting DD review include the following:

(i) Interviews and discussions with the MCDC project authorities, particularly the Project

Manager in the PMO in order to: - Gather information on their views and concerns towards the project’s resettlement

implementation; - Assess compliance with the RP policy provisions; - Identify grievance policy mechanisms in place and implementation of grievance solving

process; and - Government practices for monitoring.


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(ii) Review and analyse documents related to payment of compensation for each of the

affected households due to loss of their assets for the WWTP; (iii) Conduct interviews of some of the APs who have received compensation for their lost

assets; (iv) Updating of site plan with affected land parcels based on the revised boundary of the

WWTP site; and (v) Updating list of land owners.

1.6.2 Constraints and Limitations

This DD review has the following constraints and limitations.

(i) As the land acquisition for the WWTP has been completed, it has not been possible to interview all the land owners some of whom have moved elsewhere; and

(ii) Tenants and labours who had been working on some of the agricultural plots have left the area and local authorities did not have any information on their current address or contacts.

1.7 Organization of the Report

This report is organized in two parts. Part I includes Updated Resettlement Plan containing Chapter 2 to 6 as follows: Chapter 2: Resettlement Impacts Chapter 3: Socioeconomic Characteristics Chapter 4: Entitlements, Assistance and Benefits Chapter 5: Estimated Resettlement Cost Chapter 6: Institutional Arrangements Part II of the report includes Due Diligence of land acquisition activities containing Chapter 6 to Chapter 9 as follows: Chapter 7: Main Findings of Due Diligence Chapter 8: Conclusion Chapter 9: Outstanding Issues, Risks and Recommendations


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PART I

UPDATED RESETTLEMENT PLAN

2 Resettlement Impacts

Assessment of potential resettlement impacts was conducted based on the site visits, consultation with key stakeholders, and structured questionnaire surveys. Where no change in the APs were found, no additional information was collected. Brief description of resettlement impacts is presented in the following sections.

2.1 Measures Taken to Avoid or Minimize Adverse Impacts

Various design alternatives were considered to avoid or minimize land requisition and resettlement impacts in the project. All the alternatives were carefully reviewed and optimal options adopted. Since completion of PPTA, only the alignment for the wastewater mains was revised with an objective to avoid need for any land acquisition. The final alignment of the wastewater mains connecting Ket Kyaw pumping station to the WWTP traverses along the Kenkangawgyipat and Myopatt Road. Therefore, no land acquisition for the sewer mains expected.

2.2 Methodology for Resettlement Impact Assessment

The methodology for assessment of permanent resettlement impacts included information gathering from various sources including Land Record Office of Amarapura, and field verification.

2.3 Description of Resettlement Impacts and Resettlement Plan for WWTP

2.3.1 Wastewater Mains

During the PPTA stage tentative alignment for the sewer mains connecting the WWTP plant was proposed either under the Old Shwe Ta Chaung canal and along the existing road in Aye Zayet, Wat Kone and Dan Tabin villages. However, considering potential difficulty in laying of wastewater mains through three villages, other options were looked into. Following completion of the PPTA and based on the field investigations the alignment was changed and currently it is proposed along the Kenkangawyipat and Myopatt Road (existing dyke). Proposed alignment is shown in Figure 2.1. Total length of the wastewater mains is about 4.48km. Both the roads have sufficient land within the ROW for laying of wastewater mains. Myopatt Road in particular has a wide shoulder beyond the road pavement within which to lay the mains. Proposed alignment will not cause any permanent adverse resettlement impacts and acquisition of private assets will not be necessary. Resettlement Impact Assessment along the proposed wastewater mains alignment, conducted in February 2017 and again during 10-15 August 2017, confirmed that the ROW of these roads are generally free of any encumbrances. There are several temporary structures in some parts of the ROW but they are further away leaving sufficient space for laying of the wastewater main. However, during laying of the main, concrete pavement of three petrol pumps along the Myopatt Road will be affected. Contractor will be required to make good any damage that may be caused during construction/laying of mains. MCDC has made public announcements (24 April, May 2017 & 14 June 2017) to all the illegal occupants on both the above two roads to vacate the area.


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Figure 2.1: Alignment of Wastewater Mains

There is also a proposal by a private developer for widening of the existing Myopatt Road. Although existing pavement west of the median towards the WWTP is already wide enough for two lanes, specific design parameters for proposed widening are not currently known. Consultant has advised MCDC to inform the developer that proposed widening of the road should preferably be carried out on the Ayeyarwaddy River side. Alternatively, any widening proposed along the WWTP side may be carried out after the laying of wastewater mains is completed.

2.3.2 Pumping Station at Ket Kyaw

The Ket Kyaw site has sufficient MCDC land for locating the proposed pumping station and no land acquisition will be necessary. However, adjoining land has an existing structure but the ownership of the land is not known. It is suggested to ring fence the site for pumping station with a permanent physical barrier to avoid any extension or encroachment by the occupant of the land on to the pumping station land in the future.


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2.3.3 WWTP Site

Loss of Land

Based on the land requirement identified during the PPTA stage, detailed assessment of resettlement impacts due to the acquisition of private land for the waste water treatment plant was carried out and a detailed Resettlement Plan (RP) was prepared. Based on the impact assessment, a total of 8 land owners and three tenants were potentially impacted due to the acquisition of agricultural land for the WWTP. Additionally, one land owner was also impacted by loss of structure. The RP was duly endorsed by MCDC and MRG, and approved by the ADB in June 2015. Following cadastral survey of the area and taking into consideration changes in the land use on some of the plots, and to avoid acquisition of water-logged plots located at southern end of the site, the boundary of the WWTPP was revised. Land holding Map for WWTP site in Annex A shows the original and the revised boundaries of the WWTP. According to the revised site plan, 11.73 acre of agricultural land (as against 12.98 acres included in the RP), covering 18 land plots owned by 9 households, is affected by the WWTP. Of the 18 land plots, 4 plots are new compared to the original boundary. Seven of the 9 households are the same as were in the original RP (2015). List of land owners and plot areas is shown in Annex B. Almost all the land holdings are prone to seasonal flooding for a prolonged period of 4-5 months every year. Of the 18, 6 land parcels (3.72 acres) do not have direct access from the main road. As explained in Section 1.5, MCDC has already acquired the land belonging to these 9 households and 8 households have already received compensation. The remaining one HH has opted for land-for-land and is waiting for the replacement land from the MCDC. Due diligence of land acquisition process adopted by MCDC is included in Part II of this report. Tenure Status All the land owners possess the right to utilize/cultivate the land issued by the Land Record Department, Amarapura Township. Loss of Structures

Only 1 land owner was affected by entire loss of 1 structure totalling an area of 289 sft. The structure, used for residential purposes only during the harvesting season, was built on stilts and had direct access from the main road. Following payment of compensation the land owner has demolished the structure and handed vacant possession of land to MCDC. Additionally, 24 households would also be affected due to the loss of 32 structures (5 hh have more than one structure) built on the slope area, on the land between the end of road shoulder and boundary of private land acquired for the WWTP. Therefore, all these structures are illegal. Except for a couple of better quality structures, all the structures are temporary and/or in a very poor dilapidated condition. All the structures were photographed and marked on the map using GPS. A list of owners and estimated areas of affected structures; and a map showing location of affected structures is shown in Annex C1 and C2 respectively. Photographs of some selected structures in provided as Annex C3. Affected structures are grouped into four categories depending upon their size, use of building material and housing condition (Table 2.1). Five (5) structures are used as small shops for carrying out business activities. All the remaining 27 structures are used as residences or associated use. 9 households have also erected temporary structures on the road shoulder to conduct small businesses.


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Displacement of these 24 households will impact their sources of incomes for at least 14 households.

Table 2.1: Category of Affected Structures

No. General Description

Structure Number Total Number

01 Small, very poor material, dilapidated condition

1B, 5A, 8, 9, 10, 11, 12, 13, 15,16A, 16B, 17,18, 20, 23B, 24D

16

02. Medium sized, poor material, poor condition

1A, 2, 3, 4, 14, 19, 21, 22, 23A, 24A

10

03 Medium to large sized, temporary material, fair condition

5B, 6, 7, 24B, 24C 5

04 Medium to large sized, temporary/semi-permanent material, fairly good condition

23C 1

- - 32

Loss of Trees

There are no fruit trees, or perennial and/or wood trees affected by the project. Loss of Crops

All the 9 households had their crops affected due to the land acquisition. Some of the land owners have their land holding cultivated by tenant farmers. However, information on tenants and labourers was not available. Crops grown on affected land included groundnut, corm, onion and some seasonal vegetables.

Severity of Impact

All the affected land owners would be severely affected in terms of entire loss of their land holdings falling within the WWTP site. However, potential impact for most of the land owners on their household incomes and livelihood will only be marginal as they all have other sources of incomes. Of the 9 affected land owners, only three households live in the Yin Taw village. All the other 6 households live either in Mandalay city are or in other parts of the country and have other sources of incomes. Loss of Employment and Livelihood

Acquisition of agricultural land for the WWTP will not cause any loss of employment of any of the 9 households. However, tenants cultivating land for the 6 land owners who live in Mandalay City of other parts of the country stand to lose their sources of income. However, following acquisition of land during the January-March 2017 period, all the tenants and/or labours cultivating the land have left the area and could not be contacted. Loss of Business Income

There are no shops or businesses operated by affected households in the area. Hence, acquisition of land will not cause any loss of business incomes. However, 14 households affected by loss of structures, albeit illegal, will be affected by loss of household incomes. Loss of Public Utilities & Infrastructure

An electric line with 6 electric poles traverses the proposed site for WWTP. These will need to be removed from the site for the construction of WWTP. One sluice gate for flood control owned by MCDC located mid-way at the western edge of the WWTP site is not likely to be


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affected by the project. However, for construction of WWTP the level of the land will need to be raised and the sluice gate will no longer be required.

2.4 Temporary impacts

Detailed description of potential temporary impacts was provided in the RP. The same is not repeated in this report. As the alignment for the wastewater mains has been revised, an assessment of potential temporary impacts was conducted. Except for a very small number of temporary structures built on the road shoulder, there is not likely to be any adverse impacts on any structure due to the laying of sewer mains.

2.5 Relocation Requirements

Only one land owner was affected by loss of structure. However, the loss of structure due to land acquisition will not physically displace the household as the owner lives in Yin Taw village. Additionally, about 32 illegal structures built on the slope of the dyke (Myopatt Road) will be affected and need to be shifted. These structures are erected by 24 households who operate small businesses along the Myopatt Road. All the affected 32 structures, together with temporary stalls erected on the road shoulder are illegal and will be displaced due to the project. The structures are temporary and some of them in dilapidated conditions.

2.6 Summary of Impacts

Summary of permanent impacts is presented in Table 2.2.

Table 2.2: Summary of Resettlement Impacts Type of Loss Description No.

of HH

No./Qty

1.Land Agricultural Land 9 11.73 acre

2.Structure Main Structures 323 4510 sft.

3. Loss of crops Corn, groundnut, green gram, vegetables

9 11.73 acre

4. Loss of employment

Tenant cultivators and labourers - -

5. Loss of business incomes

Loss of income from shops 14 -

6.Trees Fruit trees - -

7. loss of Public Utilities

33 kVA Electric Line (about 1 km) and 6 electric poles

- 6

Level of impact: Household affected by entire loss of structure

24 -

Severally affected HH due to entire loss of land holdings

9 -

Total No. of Affected HH: Land owners: 9 Owners of structures on public land: 24

33 -

3 One structure was owned by the affected land owner but it has been demolished. 32 structures are owned by 24

households.


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3 Socioeconomic Characteristics

3.1 Socio-economic profile of Affected Persons

Census and socioeconomic survey of population affected by the WWTP site for the 7 out of the 8 households affected was collected and described in the RP (2015). This is not repeated in this report. Due to the revised boundary of the WWTP additional 2 land owners and 24 households for loss of structures have been identified to have been affected. Of these, 2 are the new land owners who were not among the 8 households affected by loss of land and covered in the RP. The remaining 24 households are affected by the impact on structures build on public land along the Myopatt road.

Socioeconomic data for the 2 new land owners was not collected as they have already received their compensation and attempts to contact them were not successful.

Some 14 out of the 24 households with their structures affected have only small businesses as their only source of incomes. During the interviews for collection of data on structures, almost all the households mentioned length of stay at present location varying between 4 to more than 10 years. Only one household indicated of living in the area for about one year.

Of the 32 affected structures only five (5) structures are built to run as small shop/stall for business operation. All the other structures are used as residence and associated use.

3.1.1 Housing Conditions

The affected structures, used as a residences and/or small stall/shops are temporary in nature, mainly constructed with bamboo sheet and tin roof. Most of the structures are either built on stilts or on the slope beyond the road shoulder. Some selected structures are shown in Annex C3. These structures can be easily dismantled, without much damage to building material, and shifted out of the area.

3.1.2 Employment and Occupation

14 households out of the 24 affected by loss of structures on public land affected have small businesses operated out of temporary stalls built either on the land directly impacted by the WWTP or on the road shoulder. Most of the households have one or more working members.


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4 Entitlements, Assistance and Benefits

Detailed review of existing laws and regulation, a gap analysis with the provisions of the ADB’s SPS, Requirement 2 on Involuntary Resettlement, and measures to address the gaps was included in the RP (2015). This is not repeated in this report. This section provides a summary of key principles of involuntary resettlement, eligibility, and entitlement matrix to includes main types of losses and the corresponding nature and scope of entitlements to affected households.

4.1 Key Principles of Involuntary Resettlement

The Myanmar Land Acquisition Act 1895 (LAA) and other local laws in vogue do not fully comply with the ADB’s Safeguard Policy Statement (SPS, 2009). Therefore, following policy principle will be adopted for the project: (i) As a matter of policy, land acquisition and other involuntary resettlement impacts would be avoided or minimized by exploring all design options; (ii) Lack of formal legal title or rights will not be a bar to eligibility for compensation and assistance under the project. AHs without title or any recognizable legal rights to land are eligible for resettlement assistance and compensation for non-land assets at replacement cost; (iii) All compensation will be based on the principle of replacement cost at the time of acquisition. For houses and other structures, this will involve the costs for materials and labor at the time of acquisition, with no depreciation or deduction for salvageable materials. Compensation for land will be replacement land or, in case where replacement land is not available or the household opts for cash compensation, compensation in cash at replacement cost adequate to purchase land of equivalent attributes in the vicinity; (iv) The process and timing of land and other asset acquisition will be determined in consultation with APs to minimize disturbance. In case of potential loss of standing crops the owners will be given sufficient time to harvest the crops before any displacement; (v) Where houses and structures are partially affected to the degree that the remaining portion is not viable for its intended use, the project at the informed request of the AP, will acquire the entire asset; (vi) The project will carry out meaningful consultations with affected people, host communities, and concerned key stakeholders throughout the resettlement and planning phase. APs will be systematically informed and consulted about the project, the rights and options available to them and proposed mitigating measures. The comments and suggestions of APs and communities will be taken into account in resettlement planning and implementation; (vii) The key information in the RP such as measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to APs in an understandable format including the distribution of Public Information Booklets (PIB) prior to submission of the RP to ADB for review and approval;


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(viii) Resettlement planning and implementation will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights, and to ensure the restoration of their income and living standards; (ix) Existing cultural and religious practices will be respected and preserved to the maximum extent possible; (x) Special measures will be incorporated in the RP to protect vulnerable groups such as ethnic minorities, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with appropriate assistance to help them improve their standard of living through asset building strategies such as provision of land, replacement housing of minimum standards and increased security of tenure; (xi) An effective Grievance Redress Mechanism will be established for hearing and resolving grievances during the planning and implementation of the RP. (xii) Institutional arrangements will be in place to ensure effective implement of land acquisition, compensation payment, resettlement and implementation of livelihood rehabilitation programs with full participation of and consultation with affected households; (xiii Adequate budgetary support will be made available to cover the costs of land acquisition and resettlement within the agreed implementation period; (xvi) Appropriate reporting, monitoring and evaluation mechanisms will be established and put in place as part of the resettlement management system. (xiv) Voluntary donation will not be applied for any assets; (xv) Compensation for lost assets, resettlement allowances and assistance to affected persons will be paid in full and income rehabilitation measures, where necessary, will be in place at least one month prior to the mobilisation of the contractor and commencement of any construction activities.

4.2 Eligibility

For the purposes of the project the cut-off date was established at 26 January 2015. The APs were informed of the cut-off date at the time of the census and IOL surveys conducted for the RP in January 2015 and advised that any people who illegally settle in the project area after the cut-off date will not be entitled to compensation and/or assistance under the project. In addition, the eligibility for compensation with regard to land is determined by legal rights to the land concerned. There are three types of APs: i) Persons with legal rights to land lost, fully or partially; ii) Persons who do not currently possess a legal rights but have a claim that is recognizable under national laws and, iii) Persons who do not have any title or recognizable claim to the land lost. Affected persons included under i) and ii) above shall be compensated for the affected land and assets upon land. APs included under iii) will not be entitled to any compensation for the


15

affected land, but will be entitled to compensation for their non-land assets and other assistance. Structures Built on Public Land

Households with affected ‘illegal’ structures built on the land lying between the road shoulder and boundary of affected agricultural land plots will be entitled to compensation for affected structures. Additionally, they will be entitled to transport assistance. However, 16 of the affected structures are in dilapidated conditions and all the remaining structures are temporary or semi-permanent. Due to the varying nature of structures, any assessment of replacement cost will not be useful. It is therefore, recommended that affected households for structures with very poor conditions and those with temporary and semi-permanent conditions are given a one-time lump-sum compensation to cover cost of damage to the building material during shifting. Based on the size, use of building material and structural conditions, affected structures are divided into four categories varying between dilapidated to very poor, poor temporary and temporary or semi-permanent. Level of relocation assistance corresponding to the assigned categories to cover for any damages to building material during dismantling and reconstruction is proposed. The assistance is proposed as a onetime lump sum cash payment. Compensation for Businesses

Of the 24 households affected by loss of structures, 14 households will be affected by loss of business incomes. Except for two or three households who have relatively better business incomes 9as reflected by the quality of structures), all the other households have small scale businesses (hawkers or vendors, fruit stalls, etc.) with relatively low income. Similar roadside business opportunities are available almost everywhere in Mandalay. The dismantling of structures and relocating to other location will not cause loss of income for more than a few days. It is recommended that all the 14 households are given a one-time lump sum uniform cash assistance, irrespective of level of business operation, to cover for loss of business incomes during the transition period. All the households will be given sufficient advance notice (at least 1 week) requesting them to vacate premises and dismantle affected structures prior to subproject implementation. Contractors will provide shifting assistance to any household needing help.

4.3 Resettlement Category

Land acquisition for the WWTP will result in physical and economic displacement of 9 land owners and another 24 households with impact on illegal structures. Given the magnitude of impacts, the project is categorized as ‘B’ for involuntary resettlement.

4.4 Compensation Principles & Entitlements

Compensation policy and entitlements proposed in the project takes into consideration the relevant GOM regulations as well as the objectives and principles explained in the preceding section. The overall objective is to ensure that the DPs are able to improve or at least restore their livelihood to pre-project level. Vulnerable households are provided with additional assistance to meet the above stated objectives.

4.4.1 Principle of Replacement Cost

All compensation for land, structures and other assets will be based on the principle of replacement cost in cash or in kind in accordance with the provision of the LAA (1894), Section 23(1). In case of cash compensation, replacement cost is the amount calculated


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before displacement, which is needed to replace an affected asset without deduction for taxes and/or costs of transaction as follows:

• Productive Land based on actual current market prices that reflect recent land sales in the area, and in the absence of such recent sales, based on recent sales in comparable locations with comparable attributes, fees and taxes, or in the absence of such sales, based on productive value;

• Houses and other related structures based on actual current market prices of materials and labor without depreciation or deduction for salvaged building materials and fees;

• Annual crops equivalent to current market value of crops at the time of compensation;

• For fruit trees, cash compensation at replacement cost is equivalent to three years of harvest based on the current market value for each type, age and relevant productive value at the time of compensation.

4.4.2 Entitlements

Entitlement for affected households include provisions for permanent land losses, loss of structures (house & shops), loss of crops and trees, compensation for loss of employment and business incomes, relocation assistance and provision of income rehabilitation.

Additional Subsidy. In accordance with the provision of LAA, Section 23(2), all the APs will be provided with an additional subsidy equivalent of 15% on the assessed market value of lost land and other fixed assets including crops and trees, in view of the compulsory nature of the acquisition for public purposes.

Income Rehabilitation Assistance. All the land owners affected by acquisition of their agricultural land for the WWTP have other sources of incomes. Loss of agricultural land will not make any significant impact on their household incomes. Out of the 9 affected land owners, 6 households live in Mandalay City or in other parts of the country and run other businesses. Hence livelihood restoration assistance (income rehabilitation assistance) for these households is not proposed.

14 out of the 24 households affected by loss of structures have their small scale businesses impacted by displacement. However, considering the level and type of businesses, and the duration of loss of incomes, no specific income rehabilitation assistance is proposed.

4.4.3 Replacement Cost Study

As the compensation for affected land has already been paid, a replacement cost study (RCS) is not recommended.

4.4.4 Entitlement Matrix

The Entitlement Matrix in Table 4.1 includes the main types of losses and the corresponding nature and scope of entitlements. Only the Impacts and entitlement relevant for the wastewater management and drainage components are covered in the matrix.


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Table 4.1: Entitlement Matrix

Type of Loss Application Eligible Person Project Entitlement and/or Assistance

Permanent Impacts

1.1 Permanent loss of agriculture land

Lands partially or fully affected

11.73 acre

AP or AH with Land Use right certificate (formal legal rights) or recognizable as a full title.

9 HH

• Compensation will be paid in cash at replacement cost or in kind. Replacement land will at least be of equivalent productivity at location acceptable to AP.

• The rates determined by the land appraisal will only be valid for a year. In case of delays beyond a period of one year, the rates will be revised, as necessary.

• Exemption from paying tax on compensation and administrative cost for the affected land.

• In case of entire loss of land holding, AP will be entitled to transition allowance of K50,000/month for a period of three months.

2.1 Loss of Structures Affected structures including fence, gate and improvements made on the land. Partially or fully affected 1 Structure with area of 289 sft 32 illegal structures with a total area of 4501 sft.

Owner of the affected structure (AP or AH with or without certificate to the land).

1 Land owner & 24 squatter households

• Compensation for 1 structure at replacement cost based on actual market price of materials and cost of labor for dismantling, transfer, and rebuild. No deduction for depreciation or the remaining values of salvageable materials.

• Relocation assistance for 32 illegal structures at lump sum cash payment by each category:

-Category 1 (16 structures): Kyat 40,000 each;

-Category 2 (10 structures): Kyat 60,000 each;

-Category 3 (5 structures): Kyat 75,000 each; and

-Category 4 (1 structure): Kyat 100,000.

• Physically displaced 25 households will be entitled to Transport /shifting allowance of Kyat 20,000 each irrespective of size or number of structures owned by them

3. Loss of Business Incomes

Businesses affected permanently

Affected AP with or without any legal rights for land or license for the affected businesses

14 HH affected

• Compensation for loss of Business income as onetime payment of cash assistance equivalent to Kyat 20,000.

4. Loss of Trees and/or Crops

All fruit trees and

affected crops as

recorded in the

joint IOL/SES

questionnaire.

Owners of

affected trees

and crops

. 9 HH

• Compensation for fruit trees will be equivalent to the three years harvest value based on the average value of annual harvest.

• Compensation for the affected crops will be equivalent to the harvest value of three years and based on the rates established by the Agricultural department or annual production value, whichever is higher.

• Severally affected HH will be entitled to livelihood restoration assistance


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Crops Total Area:

11.73 acre

• Affected Households will be allowed to continue to harvest their trees/crops and will be given at least 3 months advance notice to enable them to harvest the trees/crops, before the project authorities take possession of the land for clearing and handing over for civil works.

5. Community Facilities, Public infrastructures

Loss of electric distribution line. 6 Electric Poles

Respective local government & communities

• The project will rehabilitate and construct affected utilities and public facilities in consultation with local government and communities.

Temporary impacts (During Construction Phase)

1. Temporary loss of land.

Land for temporary work stations, storage of equipment and material

AP or AH with formal legal rights or recognizable rights under the law

• Project contactor will pay lease or rent to the owner on the agreed period of using the land based on prevailing rental cost and agreement with the land owner.

• APs whose agricultural and is temporarily taken by the works under the Project will be will be paid a rental fee equivalent to net loss of income for the period of disruption, damaged assets, crops and trees, as the case may be.

• Restoration of the land to its original condition, or better, prior to its return to the land owner.

• PMU will inform the public at least 45 days before the start of civil works/excavation activities

• The contractor will ensure that the excavation of trenches and other civil work activities are carried in a systematic manner and least inconvenience to general public and roadside property owners. Contractors will make arrangements to minimize traffic obstructions and facilitate smooth flow of traffic.

2. Loss or limitation of access

Closure of traffic in some road sections during the installation of water/sewer pipes.

The motorists • Project contractor to provide necessary signage and

inform the public and motorists on safety precautions and necessary diversions/rerouting arrangements

Limitation of access to and from the roadside businesses/ shops.

The pedestrians, customers and affected shop owners.

• Contractor will be advised to provide temporary access to roadside businesses and residences to minimize inconvenience and for continued access.

3. Disruption of business

Small business occupying the sidewalks, Vendors.

APs doing their business on the sidewalks.

• In consultation with the APs, the PMU will assist in providing temporary relocation site for roadside vendors and mobile shops

• Compensation will be paid based on lost days income, for a maximum of 15 days.


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4.5 Addressing Gender Issues

Following specific steps taken to address gender issues:

• During the updating of this RP, both men and women participated during the interviews providing information on impacts, awareness of project and likely impacts, and relocation options.

• As for as possible, a male and a female representative of affected households will be invited to participate in meetings for resolution of grievances and complaints.

• Special assistance will be provided to elderly, disabled and women-headed households during relocation and in the provision of income restoration assistance.

• Appropriate monitoring indicators, disaggregated by gender, will be developed for monitoring social benefits, economic opportunities and restoration of livelihoods and living standards during post-project evaluation.


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5 Estimated Resettlement Cost

MCDC did not contract any professional appraiser to determine replacement costs for different types of affected assets prior to acquisition of land. However, based on some information obtained by the consultant there has not been any appreciable change in the market prices for land and structures since 2015. Hence the compensation rates for land and other assets were taken from the RP (2015) and revised as appropriate.

5.1 Unit Prices for Cost Estimation

Details on the unit prices and estimated cost of affected assets are provided in the following sections.

5.1.1 Land

The prices for cultivation land is kept the same as in the RP (2015). However, based on the information obtained, the rates for the land parcels with no direct access from the Myopatt road are much lower compared to that facing the main road.

5.1.2 Structures

As the structures vary in quality, use of building material, a relocation assistance is proposed corresponding to the assigned categories to cover the damages to building material that may be caused during dismantling and reconstruction. The rate of assistance for each structure by category is shown in Table 5.1 below:

Table 5.1: Applicable Relocation Assistance for Loss of Structures

Categ.

No.

Description Structure Number

Total No. of Struct.

Rate of Assistance

Amt.

1 Small, very poor material, dilapidated condition

1B, 5A, 8, 9, 10, 11, 12, 13, 15,16A, 16B, 17,18, 20, 23B, 24D

16 40,000 640,000

2 Medium sized, poor material, poor condition

1A, 2, 3, 4, 14, 19, 21, 22, 23A, 24A

10

60,000 600,000

3 Medium to large sized, temporary material, fair condition

5B, 6, 7, 24B, 24C 5 75,000 375,000

4 Medium to large sized, temporary/semi-permanent material, fairly good condition

23C 1 100,000 100,000

- - - 32 - 1,715,000


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5.1.3 Loss of Crops

Compensation for loss of crops for the 9 households is based on the average rates of 1.425 million/acre applied in the RP (2015).

5.1.4 Loss of Public Utilities

Affected electric distribution line is 33 kVa. The cost for the affected electric poles is estimated at 150,000K/pole while the cost of the electric distribution line is at 6,000,000K/km length. Total cost of 6 electric poles and 1 km length of 33 kVa line is estimated at 6,900,000K.

5.1.5 Loss of Business Incomes

Businesses will be compensated for income loss, if any due to loss of access (full/partial, permanent /temporary). A lump sum amount of Kyat 20,000 per household is proposed for loss of business income during the relocation period.

Table 5.2: Estimated Resettlement Cost

No. DESCRIPTION No. of

HHs

UNIT QTY. RATE ‘000

Kyat/UNIT

AMT. KYAT ‘000

A. Compensation for Agriculture Land

Cultivable Land 5 Acre 8.01 100,000 801,000

Agricultural land seasonally water-logged or lack of direct access

4 Acre 3.72 50,000 186,000

B. Compensation for Structures

Main Structures: Residences (land owner) Relocation Assistance for illegal structures 932 structures)

1

24

Sft.

-

289

-

15

-

4,335 1,715

Secondary Structures - - - - -

C. Loss of Crops (3 land owners & 3 tenants)

6 Acre 11.73 1,425 16,175

D. Fruit Trees - No. - - -

Sub. Total (Sum of A+B+C+D) 1,009,225

E Subsidy as per LAA Section 23(2) at 15% of Assessed Compensation for fixed assets 151,384

1. Compensation for Affected Assets (A+B+C+D+E) 1,160,609

G. Compensation for Loss of Business Income

14 Months - 20 280

H. Transport Allowance (9+24) 33 L. S. - 20 66

I. Transition Allowance for entire Loss of Land

9 Months 3 50 1,350

J. Allowance for Loss of employment - Days 90 5 -

K. Allowance to Vulnerable Households - Days 90 5 -

L. Income Rehabilitation Assistance - L.S. - 250 -

2. Sub Total (Sum of G+H+I+J+K+L) 1,696

M. Public Utilities (6 Elect. Poles) - - - - 6,900

N. Fee for Replacement Cost Study (L.S.) - - - - -


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O. External Monitoring & Post-Implementation Evaluation

- - - - 10,000

3. Sub Total (Sum of M+N+O) 16,900

P. Resettlement Implementation Management (5% of Item 1, 2 & 3) 58,959

4. Resettlement Cost (!+2+3+P) 1,238,146

Contingencies (15% of estimated cost, Item 4) 185,722

Total Estimated Resettlement Cost

1,423,868

Total resettlement cost is estimated at 1,423,868,000 Kyat or USD 1,095,283 (USD 1.095 million) at an exchange rate of 1 USD to 1300 Kyat.

However, as the compensation for Land to affected land owners, except for one land owner who has expressed preference for land-for-land option in lieu of cash compensation, has already been paid, the relevant costs providing necessary allowances and assistance to 24 households affected by loss of structures need to be met.


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6 Institutional Arrangements

According to the present arrangements between the Government of the Republic of Union of Myanmar (GOM), the MRG and the ADB, the MRG is the Executing Agency (EA) of the ADB project after loan effectiveness and the MCDC is the Implementing Agency (IA). Present institutional arrangements and the key responsibilities in regard to social safeguards are described below:

6.1 Mandalay Regional Government (MRG)

In regard to the social safeguards, the MRG has the following responsibilities:

• Endorse the draft RP and the updated RP and submit to ADB for concurrence;

• Generate awareness on the project development to all relevant institutions and various administrative levels within the province;

• Direct its relevant departments such as departments of finance, construction, transport, and natural resources and environment to help in the preparation and implementation of the resettlement plan and the updated resettlement plan;

• Approve the unit rates which are detailed in the replacement cost survey report as proposed by the qualified appraiser to enable the PMU in finalizing the RP;

• Approve the detailed compensation plan and overall resettlement plan budget which will be reviewed and submitted by the Department of Finance;

• Settle complaints and concerns raised by the affected community, if any, at the provincial level.

6.2 MCDC

Mandalay City Development Committee (MCDC) was formed in 1992 in accordance with The State Law and Restoration Council Law 10/92 and placed under the Prime Minister. Under this law, MCDC was made responsible for land management and planning besides delivery of all urban services in Mandalay City. The MCDC is chaired by the Minister of Development Affairs of the Regional Government who is the concurrent Mayor of Mandalay City. The Mayor is appointed by the Chief Minister of the region. The Secretary is also appointed by the Chief Minister and responsible for the City’s Planning and Land Management Department. There are four committee members all appointed by the Chief Minister, each with specific oversight responsibility of different departments.

Specific responsibilities of the MCDC in regard to the social safeguards issues in the project include the following:

• Management of all land within the City Boundary with the exception of Government Land, Government Departments’ owned land, Religious Land and Agricultural and Virgin Land.

• Coordinate with the Ministry of Agriculture on the current status of affected land;

• To update land ownership records of affected households in order to facilitate assessment of compensation for affected land and other assets and implementation of RP;


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• To finalize resettlement policy and principles for the project, in accordance with the ADB’s SPS requirements (SR2);

• To facilitate census of affected households and detailed measurement survey (DMS) of affected assets for RP preparation and finalization;

• To contract experienced valuation expert to carry out Replacement Cost Study (RCS) for affected asses to determine compensation for affected assets;

• To monitor and supervise, through PMU, implementation of the final approved RP, including payment of compensation and other assistance in accordance with the approved RP and Entitlement Matrix, implementation of income restoration measures, and relocation of affected households and communities;

• To ensure establishment of efficient Grievance Redress Mechanism (GRM);

• To ensure dissemination of information to affected households and communities and encourage their participation in the decision making process for resettlement; and

• Conduct internal monitoring of resettlement implementation and submit periodic progress and monitoring reports to the ADB.

6.3 Project Management Office (PMO)

The Project management Office (PMO) for the MUSIP has been established to oversee project implementation. PMO is assisted by Project Implementation Consultant (PIC). One social safeguards staff has been assigned under the Environment and Social Safeguards Division headed by a Environment and Social Safeguards Officer. The PMO through its Environment and Social Safeguards Division has the following responsibilities:

• Participate in preparation and implementation of the resettlement plan and the updated resettlement plan in collaboration with relevant ministries and MCDC departments and submit the same for approval of MCDC/ MRG and for ADB review and approval.

• Prepare necessary safeguards documents for the linked projects for submission to the MCDC and the ADB;

• Develop and implement a training program for the MCDC staff, and affected wards and Township administration, and related groups regarding the resettlement plan/ updated resettlement plan and management of grievances and complaints.

• Work with the MCDC in finalizing the Resettlement Plan.

• Secure the budget for preparation and implementation of the resettlement/ updated resettlement plan, ensure that funds for compensation, assistance and resettlement are available and in a timely manner.

• Coordinate with the MCDC to direct relevant departments and various levels of authorities in implementing the project and updated resettlement plan.

• In coordination with the grievance Redress Committee, serve as grievance officer for PMO and coordinate/monitor/track/report on grievances related to the Project.

• Internally monitor the preparation and implementation of the resettlement plan/updated resettlement plan and ensure that resettlement-related activities are carried out in accordance with the updated resettlement plan agreed between the MCDC and the ADB.


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• Oversee the disclosure of resettlement related documents and consultation with affected persons and key stakeholders.

• Appoint NGO/CBOs in conducting public consultation and awareness programs and monitoring of resettlement activities.

• Review of monitoring reports and implementation of remedial actions, and reports on implementation of updated resettlement plan for submission to ADB.

• Coordinate the work of the External Monitoring Agency

• Through its technical support staff assist in public consultation grievance resolution, data management, and assessment and payment of compensation and planning and implementation of income rehabilitation measures.

Organization of the PMO is shown in Figure 5.1

6.4 Project Implementation Consultants (PIC)

Project Implementation Consultant (PIC) contracted by MCDC to provide necessary technical support to MCDC and the PMO includes one international social safeguards expert (6 months intermittent inputs) and a national social safeguards specialist (12 months intermittent input). Specific tasks of social safeguards consultants include:

• Assist PMO/MCDC in conducting necessary field surveys for updating of RP, as well as for preparation of RP for the linked projects, and provided needed technical support to facilitate its approval;

• Assist PMO in conducting cadastral and topographic survey of the WWTP site;

• Coordinate in conducting detailed measurement survey (DMS) based on detailed engineering design and update the list of affected persons to record any change from the preliminary design;

• Assist PMO in preparation of required materials to undertake effective information campaigns about the project resettlement related information, project implementation/construction schedule and conduct of public consultations;

• Assist in the conduct of the information campaign, public consultation, and community participation on social safeguards;

• Verify the assessment of compensation during the RP updating, conducted by the contracted appraiser, and make necessary amendments to the RP entitlement matrix, as necessary;

• Participate and monitor compensation payments to AHs and advise PMO on the actions needed to ensure compensation is paid in full and in a timely manner;

• Ensure that grievances are addressed promptly and properly and ensure proper documentation of grievances.

• Provide periodic training on grievance redress procedures, if necessary;

• Coordinate and provide needed technical and logistical support to PMO, township administration and local ward heads in RP implementation;

• Coordinate with PMO in implementing the RP;


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• Together with members of the PMO, brief officials at all levels on the contents and procedures for implementing the RP and if necessary, provide suggestions to improve procedures for the coordination of resettlement and compensation;

• Establish and implement procedures for internal monitoring of RP implementation;

• Train PMO assigned social safeguards specialists to carry out internal monitoring and reporting of the RP implementation;

• Conduct periodic spot checks on the RP implementation, and prepare periodic progress reports to be submitted to PMO and the ADB.

• Design and deliver capacity development activities on ADB social safeguard policies to all relevant agencies as needed, including requirements for participation, communication, and gender mainstreaming.


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Figure 6.1: PROJECT MANAGEMENT OFFICE ORGANIZATION


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PART II

DUE DILIGENCE

7 Main Findings of Due Diligence

This section covers main findings of the due diligence of land acquisition for the WWTP.

7.1 Scope of Land Acquisition

Based on the revised boundary for the WWTP and verification in the field and land ownership details obtained from the Land Record Office of Amarapura, an area of 11.73 acre, in 18 plots, has been acquired by MCDC. The acquisition of land affected 9 households, seven of which are the same as previously identified to be affected during preparation of RP (2015). Of the 18 plots, 6 plots (3.72 acre) do not have direct access from the main road. Tenure Status All the land owners possessed the right to utilize/cultivate the land issued by the Land Record Department, Amarapura Township. Almost all the land holdings are prone to seasonal flooding for a prolonged period of 4-5 months every year. Verification from Land Record Office identified that six out of the nine land owners owned more than one land holdings. Breakdown of number of land owners by ownership of land holdings with areas is presented in Annex B. Following the cadastral and topo survey only 11.73 acre was considered adequate for the WWTP as against 12.98 acres identified in the RP (2015). Further, most of the perennially water logged areas are now avoided and additional plots on the northern most location are included in the revised boundary for the WWTP.

7.2 Review of Compensation and other Entitlements

MCDC has acquired the entire land of area 11.73 acres for the WWTP based on the negotiated settlement. The negotiations for compensation with each individual household was conducted during January to March 2017.

7.2.1 Land Acquisition Procedures For the acquisition of land for WWTP the practice and procedures that are generally used in Myanmar were followed. The negotiations with each individual household was conducted on one-to-one basis.

7.2.2 Payment of Compensation, Allowances and Other Assistance

Current procedures for acquisition of land in Myanmar do not differentiate in compensation for different types of affected assets: crops, structures, etc. Further, no allowances or assistance such as: transport allowance, income rehabilitation allowance or transition allowances, as were specified in the RP (2015) were paid to the affected households. Compensation for land is composed of land and all other assets built on land. As such, no compensation for affected crops & trees or structures was paid to the affected households.


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List of owners, area of land plots acquired, compensation rates for land and amount paid to the land owners is shown in Annex D. Compensation rates applied in the RP, and used in the estimated resettlement cost Table 5.2 are also shown for purpose of comparative analysis. In general, the compensation rates for land plots with direct access from the road and that for indirect access or water logged plots are better than that applied for resettlement estimates. For example, rates for plots with direct access are compensated at Kyat 140,000,000 per acre as against the rate aof Kyat 100,000,000/acre applied in 2015. Similarly, rates for plots without direct access are paid at rates Kyat 70,000,000/acre as against Kyat 50,000,000/acre applied in the RP (2015). Total compensation amount for land and other moveable and un-moveable assets on land is 1,228,500,000 Kyat. The entitlements for compensation and other allowances for 9 affected households, as estimated in Table 5.2 are as follows: a. Compensation for cultivable land (8.01 acre): 801,000,000 b. Compensation for plots with indirect access (3.72 acre): 186,000,000 c. Compensation for 1 structure: 4,335,000 d. Compensation for Crops: 16,175,000 e. 15% subsidy on items a to d above: 151,127,000 f. Transport allowance: 180,000 g. Transition allowance: 1,350,000

Total compensation and allowances: 1,160,167,000

Even after including all other entitlements specified in Chapter 5, the compensation paid to the affected land owners is still higher that the estimated cost for compensation & allowances by an amount of 68,333,000 kyat.

7.2.3 APs Satisfaction Level

The consultant interviewed six of the 8 affected land owners who have received compensation for their land parcels. Two remaining land owners could not be contacted. All the six land owners expressed complete satisfaction with the compensation amount that they have received for their agricultural land.

7.3 Public Consultation and Participation

In the context of resettlement, public participation includes both, the information exchange (dissemination and consultation), and collaborative form of decision-making (participation). Dissemination refers to transfer of information from project authorities to the affected population. Consultation, on the other hand, generally refers to joint discussion between project authorities and the affected population serving as a conduit for transfer of information and sharing of ideas. To be effective, the consultation should be meaningful4. Public

4 ADB’s SPS (2009) defines ‘Meaningful Consultation’ as: A process that (i) begins early in the project

preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely

disclosure of relevant and adequate information that is understandable and readily accessible to affected

people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and

responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the


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consultation and participation is an ongoing process throughout resettlement planning and implementation, not an event. A summary of review of public consultation and participation activities during and after the PPTA stage, carried out for due diligence purposes, is presented below:

7.3.1 Information Campaign and Public Consultation during RP Preparation

Following completion of Phase I of the project: preparation of RP, public consultation activities included public information dissemination about the project and consultation and focus group discussion with key stakeholders and affected communities both prior to and during the field surveys (IOL/SES). Public Information Dissemination Although news items appeared in local and national newspapers to report on various project related events, MCDC, despite several requests to do so, did not made any public announcement to inform general public about the project, its components, potential benefits, likely impacts and key principles to mitigate adverse impacts.

7.3.2 Information Campaign and Consultation during Finalization of RP and Resettlement Implementation

During the Phase II; project design, updating of RP and resettlement implementation; the review of recommended public consultation and participation activities is as below: Information Dissemination on Cut-off-date During the project preparation a cut-off date was established at 26th January 2015. This was the date when IOL and SES for the RP were completed. However, MCDC has not made any further public announcement about the cut-off-date for any other component of the project. Public Information Booklet (PIB) A Public Information Booklet (PIB), in Myanmar language, was prepared during the PPTA stage with recommendation for MCDC to distribute the same to all potential beneficiary and affected communities. Despite continued requests to do so, MCDC as of August 2017 has not distributed the PIB. PMO has also advised the consultant to not distribute the same to any members of the public until a formal permission from MCDC is obtained. During the meeting with the consultant the Vice-Mayor on 16 August, 2017 agreed in principle for distribution of the PIB once it is formally approved by the Mayor. Public Information and Consultation regarding Entitlements MCDC has already acquired the land for the WWTP based on the negotiated settlement. However, MCDC did not provide any information to the affected households on their entitlements for compensation, allowances and other assistance as described in the RP. MCDC/PMO have not formally informed 24 households affected by loss of structures on the land falling between road shoulder and the boundaries of plots acquired for the WWTP. Two

incorporation of all relevant views of affected people and other stakeholders into decision making, such as

project design, mitigation measures, the sharing of development benefits and opportunities, and

implementation issues.


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notice boards ate placed along the private land plots acquired to announce the site for WWTP. Ideally, these notice boards should have been set up along the road shoulder. This reflect their old mindset of not even considering it necessary to provide prior information about the project and entitlements to households considered squatters for their ‘illegal’ structures. Due diligence of public consultation and participation activities suggests that the following specific objectives of public information campaign and public consultation have not been achieved.

➢ To share fully the information about the proposed project, its components and its activities, with affected people.

➢ To obtain information about the needs and priorities of the affected people, as well as information about their reactions to proposed policies and activities.

➢ To inform various options for relocation and rehabilitation measures available to people.

➢ To ensure transparency in all activities related to land acquisition, resettlement and rehabilitation.

7.4 Disclosure

The RP, endorsed by MCDC in June 2015, was submitted to the ADB for review and approval. The approved RP was uploaded on the ADB website in compliance of the ADB disclosure policy. The RP was also translated in Myanmar language in June 2015. However, as of August 2015, MCDC has not disclosed the RP either on its website (MCDC yet to create one) or at any place in Mandalay. None of the townships covered by the project have a copy of the RP. Neither the affected households nor any beneficiary communities are provided with copies of resettlement policy principles or summary of entitlements. Summary of the RP, including the entitlement matrix, has been translated in Myanmar language but not provided to respective ward heads for onward information dissemination to affected and beneficiary communities. Hard copies of the English and Myanmar versions of the final RP are also not available at the MCDC office, and are not accessible to general public for information.

7.5 Grievance Redress Mechanism

To ensure that all grievances and complaint by affected persons, as well as the general beneficiary/affected communities, in regard to land acquisition, compensation and other assistance, relocation, income rehabilitation or any other aspects of the project are resolved in a timely and satisfactory manner, and that all avenues for airing grievances are available to them, a grievance redress mechanism was proposed for the project and explained in the RP.

7.5.1 Grievance Redress Committee (GRC)

Proposed GRM envisaged establishment of a Grievance Redress Committee with an aim to strengthen and expand the role of the Department of Public Relation MCDC and integrate the existing grievance resolution system. The committee was proposed to be headed by a Senior Officer from Department of Public Relations & Information, MCDC. The composition of the GRC was to include:


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a. Representative from the Department of Public Relations, MCDC

b. Board of Trustee, Member

c. Representative from Townships, Member (as needed)

d. Town elder, Member

e. Representative from Women Association, Member

f. Representative from Social Welfare Group

g. Community representatives from the complainant’s ward (as needed) Representatives from Townships and from Complainants’ wards will be called to participate in the GRC meetings for review of cases pertaining to their jurisdictions. Depending on the type of complaint, GRC may also ask representatives of the relevant technical department to be present for the meeting.

7.5.2 Grievance Redress Procedures

A three stepped procedure was proposed for the Project.

a. As a first step, all complaints and grievances by the APs would be addressed through consultation and in participatory manner at the first instance they are brought to the notice of ward head or township administration. The ward head or township administration, in consultation with the project staff, will try to address complaints within 15 days.

b. If the complaint is not resolved within 15 days from the date it is brought to the ward head or township administration or if the APs is not satisfied with the response, he/she can bring the complaints to the head of the PMU at the MCDC. The PMU will address the complaint in 15 days from the time it is received.

c. However, if the complaint is not resolved within 15 days from the date it is brought to the PMU or if the APs is not satisfied with the response, he/she can bring the complaints to the notice of the GRC at the MCDC level. The GRC will address the grievances within 3 weeks from the date they are received.

In case the grievances could not be resolved at the GRC level within 3 weeks from the date they are brought to its notice, or if the AP is not satisfied with the decision of the GRC he or she can seek legal recourse in the court of law at any time on their own will. If efforts to resolve complaints or disputes are still unresolved and unsatisfactory, the complainants have the right to send their concerns or problems directly to ADB’s Southeast Asia Department (SERD) through ADB Myanmar Resident Mission. If the households are still not satisfied with the responses of SERD, they can directly contact the ADB's Office of the Special Project Facilitator as outlined in the Information Guide to the Consultation Phase of the ADB Accountability Mechanism. The GRC and the procedures for resolving complaints and grievances were to be made public through an effective public information campaign. The grievance redress procedure shall also be explained in the project’s Public Information Booklet.

7.5.3 MCDC Response and Next Steps

After repeated requests to MCDC to establish a Grievance Redress Committee, MCDC expressed difficulty in forming a committee as was proposed in the RP. MCDC decided to limit the grievance redress mechanism internally within MCDC. In the meeting chaired by the


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Vice-Mayor, and attended by the PMO and the social safeguards specialist of the PIC, the following simplified GRM was agreed in principle. a. As a first step, members of the public, beneficiaries and impacted communities, will send

their complaints/grievances to the ward representatives who in turn through discussion with project staff within their jurisdiction will try to resolve the issues/complaints. In case the grievances are not resolved to the satisfaction of the complainant, the grievances will be forwarded to the designated township representatives.

b. MCDC will designate one representative from each township covered by the project to be responsible to address grievances within their jurisdiction as and when they are received from the ward representatives.

c. In case the complaints/grievances are not addressed to the satisfaction of the complainants, these will be forwarded to the office of the Vice Mayor. Vice Mayor will designate specific committee members to resolve the complaints in coordination with the assigned social safeguards staff of the PMO.

It was agreed that the suggested grievance redress procedure will be explained in the PIB and informed to the general members of the public during public consultation exercise. Further, it was also agreed that MCDC will place three letter boxes for complaints and suggestions by the members of the public. One box each will be placed at the site for Shwe Ge Pumping Stations, Amarapura Township Office, and at ground floor of the 6 Storey building in MCDC compound.

7.6 Institutional Capacity

The capacity in social safeguards in the PMO in general, and in the designated social safeguards staff in particular is very limited, to the extent of almost non-existent. Designated social safeguards staff in the PMO is the regular staff in the Water and Sanitation Department and does not have a full time dedicated responsibility for social safeguards issues in the project. In general, understanding of social safeguards issues and knowledge of the objectives and principles of the ADB’s SPS among the PMO staff is very limited.

7.7 Monitoring & Supervision

Specific objectives of the monitoring and evaluation are to (i) ensure that the standard of living of APs is restored or improved; (ii) monitor whether the time lines for implementation activities are being met; (iii) assess if compensation, rehabilitation measures and social development support programs are sufficient; (iv) identify problems or potential problems; and (v) identify methods of responding immediately to mitigate problems. To meet the above objectives both internal and external monitoring is proposed in the project.

7.7.1 Internal Monitoring

Internal monitoring is proposed to be carried out by PMO through township administration. These agencies are expected to conduct internal monitoring by (i) regularly meeting with the representatives of the APs and village administrators; (ii) holding group discussions with all or representatives of severely affected households; and (iii) meeting with marginally affected households. The focus of internal monitoring was described in the RP. A review of project ongoing project implementation activities indicate that internal monitoring activities as suggested have not yet been fully operational.


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7.7.2 External Monitoring

Main focus of external monitoring and evaluation is on social impacts on APs and whether or not APs have been able to restore a standard of living equal to, if not better than, that which they had before the project. External monitoring is required in projects with complex and sensitive resettlement impacts and the projects that are categorized ‘A’ for IR impacts. MUSIP is categorized as ‘B’ for IR impacts. However, external monitoring is recommended for MUSIP as it is the first project being undertaken by the MRG and MCDC, and they do not have any prior experience and capacity in addressing social safeguards issues in development projects. Specific objectives of external monitoring are explained in detail, and TOR for contracting External Monitoring agency (EMA) in the RP (2015) to provide an independent verification of the Borrower’s monitoring information through the conducting of a periodic review and assessment of achievement of resettlement implementation. However, PMO has not contracted any EMA to meet above requirements and has completed acquisition of land for the WWTP, except for provision of replacement land to one land owner.

7.7.3 Post Implementation Evaluation

Considering that except for provision of replacement land to one land owner, land acquisition has already been completed; the compensation amounts paid to the affected households cover land and other moveable and non-moveable assets on land; affected households have other business interests and the impact of loss of agriculture land is not likely to make any appreciable impact on their livelihood and living standards; post-implementation evaluation in the project is not recommended.


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8 Conclusion

Results of interviews of different stakeholders including PMO and Aps, and review of resettlement documents of the project and analysis of the information lead to the following conclusions.

1. Land acquisition and compensation. Land acquisition for the WWTP site has been completed except for the provision of replacement land to one land owner. The land acquisition procedure followed local practices and completed on willing buyer-willing seller basis between MCDC and the affected household. Compensation rates and amounts were decided based on negotiated settlement.

2. Following local practices, compensation for affected land covered all moveable and non-moveable assets on land. Further, no additional allowances and assistance were provided to the households impacted by loss of agriculture land.

3. Review of compensation paid and their entitlements according to the provision of the resettlement policy for the project indicate that the compensation amounts are sufficient to cover all the entitlements.

4. Six out of the 8 land owners interviewed expressed their satisfaction with the compensation amounts received.

5. Public consultation and Information Dissemination. MCDC and PMO has not conducted any formal project related public information dissemination either in local and national newspapers or through radio and TV announcements.

6. MCDC and PMO has not informed general public including potential project beneficiaries and affected communities about the project objectives, potential benefits and adverse impacts, entitlements for loss of private assets & sources of livelihood, key measures to mitigate adverse impacts, and grievance redress mechanism. Even the households potentially affected by loss of structures due to the revised boundary of WWTP have not been informed about the impact on their structures and entitlements for relocation assistance. Public Information Booklet (PIB) describing above information is yet to be distributed to members of general public.

7. Grievance Redress Mechanism. Grievance Redress Mechanism has not been put in place and GRC, as was suggested, has not been established. However, in a recent meeting with the Vice Mayor, agreement is reached on an alternative grievance redress mechanism which is expected to be implemented soon.

8. Disclosure. MCDC/PMO has not disclosed English and Myanmar language RP locally at MCDC office, respective townships/wards and have not been uploaded on MCDC website/facebook. Although summary of the RP, including the entitlement matrix, has been translated in Myanmar language but have not been disclosed at respective ward heads for onward information dissemination to affected and beneficiary communities.

9. Institutional Capacity. The capacity assessment in the PMO in general, and in the designated social safeguards staff in particular is very limited. Designated social safeguards staff in the PMO is come from other departments and work at the PMO on an ad hoc basis.

10. Monitoring. There is no formal policy on monitoring in Myanmar. Therefore, no systematic monitoring of the project impacts on APs is conducted in the project. PMO has not contracted External Monitoring Agency or consultant.


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Table 8.1: Summary of Due Diligence Findings

No. Issue Review / Assessment Action taken by MCDC / PMO

Remarks

01. Compensation for Agriculture Land

Land acquisition for the WWTP site has been completed except for the provision of replacement land to one land-owner. The land acquisition procedure followed local practices and completed on willing buyer-willing seller basis. Compensation rates and amounts were decided based on negotiated settlement.

Following local practices, compensation for affected land covered all moveable and non-moveable assets on land. Further, no additional allowances and assistance were provided to the 8 out of nine households impacted by loss of agriculture land.

Review of compensation paid and their entitlements according to the provision of the resettlement policy for the project indicate that the compensation amounts are sufficient to cover all the entitlements.

Six out of the 8 land-owners interviewed expressed their satisfaction with the compensation amounts received.

PMO needs to provide replacement land to the remaining one land-owner within a specific time-frame.

Compensation amounts are sufficient to cover compensation for land and other assets, and allowances and other assistance.

Therefore, assessed as in compliance with the provisions of the agreed resettlement policy.

APs are reported to be satisfied with the compensation amounts received.

02. Public Consultation and Information Dissemination

Although several project related events were reported regularly in the local and national newspapers, PMO has not conducted any formal public information dissemination or consultation.

Public Information Booklet (PIB) prepared during the PPTA stage has not been formally approved by the MCDC/PMO and have not been distributed to any members of the general public, including project beneficiaries and affected communities.

Vice Mayor has agreed in principle to distribute PIB once it is amended, as necessary, and formally approved.

Public consultation and information dissemination should continue throughout the project implementation phase


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03. Disclosure MCDC/PMO has not disclosed English and Myanmar language RP locally at MCDC office & at respective townships/wards, and have not been uploaded on MCDC website/facebook.

Summary of the RP & the entitlement matrix have not been disclosed at respective ward heads for onward information dissemination to affected and beneficiary communities.

- MCDC/PMO has yet to disclose safeguards documents in order to comply with the ADB’s disclosure policy

04. Grievance Redress Mechanism

Grievance Redress Mechanism has not been put in place and Grievance Redress Committee, as was suggested, has not been established. Information on GRM has not been provided to project beneficiaries, affected communities and general members of the public.

MCDC/PMO have agreed to an alternative grievance redress mechanism which is expected to be implemented soon.

PMO is yet to put in place an effective GRM system, and inform project beneficiaries and affected communities to comply with the ADB’s policy.

05. Monitoring Internal monitoring of ongoing project implementation activities is not yet fully operational.

PMO has not contracted any EMA to meet above requirements and has completed acquisition of land for the WWTP, except for provision of replacement land to one land owner.

- External monitoring is recommended for MUSIP as it is the first project being undertaken by the MRG and MCDC, and they do not have any prior experience and capacity in addressing social safeguards issues in development projects.

06. Institutional Capacity in social safeguards

In general, understanding of social safeguards issues and knowledge of the objectives and principles of the ADB’s SPS among the PMO staff is very limited.

Designated social safeguards staff in the PMO is the regular staff in the Water and Sanitation Department and does not have a full time dedicated responsibility for social safeguards issues in the project.

Designated social safeguards staff in the PMO to work closely and regularly with the social safeguards specialists of the PIC

Designated social safeguards staff should work closely with the consultant


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9 Outstanding Issues, Risks and Recommendations

Despite the general satisfactory land acquisition for the WWTP, there are a number of pending issues that remain to be addressed in the project. This section summarizes pending issues, risks, and recommendation together with target date for implementation of remedial actions.

9.1 Replacement Land

Replacement Land to one affected household

One affected household has requested for a suitable replacement land, at location acceptable to him, in lieu of cash compensation for his affected agricultural land. The matter has been pending for the past two to three months.

Recommendation: The PMO should expedite provision of replacement land to the household as soon as possible to bring closure of land acquisition for the WWTP. Replacement land should be of equivalent productive capacity and at location acceptable to the AP.

Recommended Target date: End Of August 2017

9.2 Recognition of Squatters and Impacts due to WWTP

During the PPTA stage any impact on structures built on the shoulder of the main road or on land lying between shoulder and the boundary of land plots affected by the WWTP were not identified because the area was not considered to be affected by the project. However, due to the adjustment of the WWTP boundary, 24 households who have constructed structures on the land between the road shoulder and the land plot boundary will be affected. As the structures are built on public land, they are considered illegal. Further, civil works in other components may also impact many legal or illegal structures and other assets, permanently or temporarily. However, the resettlement policy for the project provides for payment of compensation for these structures. In Myanmar, current land acquisition practices do not recognize any claim by squatters. There is therefore, serious risk that MCDC and PMO may not inform these affected households their entitlements for compensation, allowances and other assistance as provided for the policy and evict them without providing any assistance. This will be serious non-compliance of the agreed policy.

Recommendation: The PMO should conduct meeting with the potentially affected households for loss of their structures due to WWTP and comply with the provisions of the agreed resettlement policy in the project and provide suggested assistance and allowances these affected households are entitled to. The entitlements are described in Section 4.2 and in Table 4.1 Entitlement Matrix. Specific amounts that these households are entitled to are specified in Table 5.2, Estimated Resettlement Cost.

Target Date: 15 September 2017


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9.3 Public Consultation and Information Dissemination

PMO has not conducted public announcement of the project nor it has conducted any public information campaign to inform general members of the public , potential beneficiaries and affected communities about project objectives, scope, components, potential benefits and adverse impacts, key policy principles to mitigate adverse impacts and the grievance redress mechanism to resolve any complaints and grievances by members of the public and project affected communities. Recommendations. Specific recommendations include: a. PMO should make a formal public announcement in local and national mass media to inform general public about the project; b. Public announcements should be made to inform general public in advance prior to start up of civil works. For laying of interceptor mains, some section of roads may need to be closed temporarily to facilitate civil works. Local communities should be continuously consulted, and informed, regarding location of construction camps, access and hauling routes and other likely disturbances during construction. The road closure together with the proposed detours should be communicated via advertising, pamphlets, radio broadcasts, road signage, etc. c. The Public Relations and Information Department of the MCDC will use its print media and FM radio channel to keep general public informed about the project and status of activities. d. Distribute PIB to all beneficiaries and affected communities. Recommended Target Date: 15 September 2017

9.4 Disclosure

MCDC/PMO has not disclosed English and Myanmar language RP locally at MCDC office & at respective townships/wards, and have not been uploaded on MCDC website/facebook. Summary of the RP & the entitlement matrix have not been disclosed at respective ward heads for onward information dissemination to affected and beneficiary communities. Recommendations. To comply with the ADB’s disclosure policy, PMO should disclose all the documents specified above without further delay. Copies of RP in Myanmar language should be disclosed at respective township offices and at other prominent public places. RP should also uploaded on MCDC website and/or facebook. Additionally, summary of RP and entitlement matrix should be provided at ward offices.

Recommended Target Date: 15 September 2017

9.5 Grievance Redress Mechanism

Grievance Redress Mechanism has not been put in place and Grievance Redress Committee, as was suggested, has not been established. MCDC/PMO have agreed to an alternative grievance redress mechanism whereby grievances will be addressed at ward level and at township level by designated township representatives. Complaints that cannot be resolved at township level will be forwarded to the Vice Mayor’s office. Recommendations. To comply with the ADB’s policy, the PMO should put in place GRM as agreed with the Vice Mayor, and inform project beneficiaries and affected communities. Further, PMO should place letter boxes at pre-determined locations for general members of the public to send their


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suggestions and complaints. Location of these letter boxes should be made public through an effective public information campaign. Recommended Target Date: 15 September 2017

9.6 Institutional Capacity in Social Safeguards

Currently the understanding of social safeguards issues and knowledge of the objectives and principles of the ADB’s SPS among the PMO staff is very limited. Recommendations. Designated social safeguards staff of the PMO should be advised to work with the consultant on regular basis to gain experience in social safeguards issues. Recommended Target Date: Coordinated with visits by PIC social Safeguards Consultants

9.7 Monitoring

Internal monitoring of ongoing project implementation activities is not yet fully operational. PMO has not contracted any EMA for external monitoring although land acquisition for WWTP is already completed except for provision of replacement land to one household. Recommendations. Internal monitoring for social impacts in the project needs to be strengthened. As implementation of resettlement related activities for WWTP is not completed yet, and implementation of other components yet to begin, it is recommended that PMO contract a competent independent external monitoring agency (EMA), or an independent consultant, to carry out external monitoring of resettlement implementation in the project as soon as possible. Recommended Target Date: End of September 2017


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ANNEXES


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Annex B: List of Land Owners and Compensated Affected Area

(August 2017)

No Name of Owner Plot No

Total Area (Acre)

(Cadastral

Survey)

Area Acquired

(Acre) As per Land

Record

Date Comp Paid

Remark

1

Daw Yan Khwae Kan

59/1 0.82 0.82 16/3/2017 New plot affected

65 1.06 1.06 23/2/2017 Covered in the

RP

72/1 1.29 1.29 23/2/2017 Listed in RP

2 Daw Sein Mya 60 0.74

0.59 21/3/2017

New plot affected 64 0.06

3 U Yin Yone Hlaing 66/1 0.84 0.64 20/3/2017 Listed in RP

4 U Htway 67/1 0.7

0.72 17/3/2017

Listed in RP 68/2 0.62

5 U Chit Shan

68/1 0.68

3.51

26/1/2017

Listed in RP 69/1 0.68

70/1 1.62

71/1 0.53

6 U Own Khine 79/1 0.94 0.96 - Listed in RP

Opted for land-for-land

7 Daw Shwe Shan 79/2 0.32 0.32 16/3/2017 Listed in RP

90/2 0.26 0.26 20/3/2017 Listed in RP

8 Daw Yan Site Kyu 84/2 0.06 0.06 20/3/2017 Listed in RP

90/1 1.2 1.2 20/3/2017 Listed in RP

9 U Thaung Hlaing 90/3 0.3 0.3 16/3/2017 New plot affected

Total 18 12.72 11.73 - -


45

Annex C1

WWTP - List of Owners and Affected Structures

No Name of Owner

HH Size

Length of Stay In Year

Use of Structure

Type of Structure Appr. Area (sq.ft)

Type of Business In front of Res

Aware of the project

Source of Inf

Aware of Impact

Recd. Notice from MCDC

Res Shop Ext. Poor

Temp Semi- Perm

Y N MCDC Other Y N Y N

1A U Maung Win 6 13 √

√ 144 Restaurant √ √ √ √

1B √ 80 Kitchen

2* U Than Naing 1 10 √ √

135 Shop (Material)

√ √ √

3 Daw Ni Ni Htay 5 4 √ √

240 Res+Shop (Sewing)

√ √ √ √

4* Daw Nyo 1 15 √ √ 100 √

5A U Nyo Min Soe 7 7 √ √ 90 √ √ √

5B √ √

162 Shop(fruit, Veg)

6* U Thein Win √ √ 162

7* √ √ 180

8* √ √ 80

9* √ √ 70

10 U Khin Mg Swe 4 6 √ √ 100 Labour √ √ √ √

11 Daw Kay Thi Win 3 8 √ √ 80 Shop √ √ √

12 Daw Thuzar Khine 2 5 √ √ 80 √ √ √

13 U Nyan Tun Aung 4 9 √ √ 120 √ √ √ √

14 U Thein Soe 3 7 √ √ 135 √ √ √ √

15 U Win Tun 4 7 √ √

200 Shop(fruit, veg)

√ √ √ √

16A U Wai Min Oo 6 7 √ √ 96 √ √ √ √

16B √ √ 80

17 Daw Zar Chi 4 5 √ √ 180 √ √ √ √

18 Daw Khin Mar Kyi 3 1 √ √ 80 √ √ √ √

19* √ √ 180

20 Daw Mya 5 7 √ √

180 Shop(fruit,veg)

√ √ √ √


46

21* U Win Oo √ √ 144

22* √ √ 150

23A Daw Thaung Han 6** 7 √ √ 352 Bamboo shop

√ √ √ √ 23B √ √ 64

23C 4 7 √ √ 500

24A U Sein Kyaing 10 6 √

√ 80 √ √ √ √

24B √ 180

24C √ 48 Kitchen

24D √ √ 40 Shop

Total 27 5 17 14

1 4510 14 4 9 11 6 12

4

Note: Y= Yes, N = No, Res= Residential, Temp= Temporary, Semi-Per= Semi-Permanent *Owners could not meet during survey around WWTP ** Labourers Most house owners received Notice from MCDC at least two times to move out from existing area


47

Annex C2


48 / 62

Annex C3: WWTP - Selected Affected Structures


49 / 62

Annex D: List of Land Owners & Compensation5 for Land

No Name of Owner Plot No

Detailed Impacts Compensation Amount (Kyat)

Rate/acre (Kyat)

Market Rate/acre in

RP

Remarks

Land (Acre)

Structure Crops

1

Daw Yan Khwae Kan

59/1 0.82 - Groundnut, Vegetables

114,800,000 140,000,000 100,000,000 -

65 1.06 254,800,000

70,000,000 50,000,000 Water logged/indirect access

72/1 1.29 - 140,000,000 100,000,000 Cultivated by tenant

2 Daw Sein Mya 60 0.74 - 41,300,000 70,000,000 50,000,000 Waterlogged/indirect access

64 0.06 -

3 U Yin Yone

Hlaing 66/1

0.84 - 44,800,000 70,000,000 50,000,000 Cultivated by tenant

4 U Htway 67/1 and 68/2

0.72 1 2,800,000 70,000,000 100,000,000

1.32 Acre in RP including the Structure (64,400,000-61,600,000kyat)

5 U Chit Shan

68/1

3.51 - 491.400,000 140,000,000 100,000,000 69/1

70/1

71/1

6 U Own Khine 79/1 0.94 - Land-for-land option In lieu of cash, Land-for-land

option

7 Daw Shwe Shan 79/2 0.32 - 81,200,000 140,000,000 100,000,000 Cultivated by Tenant

90/2 0.35 50,000,000 Water logged

5 Compensation for land covers land and all moveable and unmoveable assets on land.


50 / 62

8 Daw Yan Site

Kyu

84/2 0.06 - 176,400,000 140,000,000 50,000,000 Water logged

90/1 1.2

9 U Thaung Hlaing 90/3 0.3 - 21,000,000 70,000,000 50,000,000 Indirect access/waterlogged

Total 18 11.73 1 - 1,228,500,000

updated resettlement plan and due diligence report...7.2 review of compensation and other...

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