Resettlement Plan

September 2012

PNG: Port Moresby Power Grid Development Project

Prepared by PNG Power Ltd. for the Asian Development Bank.

Currency Equivalents (as of 29 August 2012)

Currency unit – Kina (K) K1.00 = $0.4855 $1.00 = K2.0597

Abbreviations

ADB – Asian Development Bank AP – affected people APs – affected persons CC – central land claim CEO – chief executive officer CLO – customary land officer DLO – district land officer EA – executing agency GAP – gender action plan ha – hectare IA – implementation agency ILG – Incorporated Land Group kV – kiloVolt LIR – land investigation report m – meter MOA – memorandum of agreement NCD – national capital district NCDC – National Capital District Commission PLO – provincial lands officer PMU – project management unit PNG – Independent State of Papua New Guinea POMPGD – Port Moresby Power Grid Development Project PPL – PNG Power Limited RP – resettlement plan SPS – safeguard policy statement TB – tuberculosis VG – Valuer General VLGI – Vaga Land Group Incorporation

NOTE

In this report, “$” refers to US dollars

This land acquisition/resettlement plan is a document of the borrower. The views expressed herein do not

necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in

nature. Your attention is directed to the “terms of use” section of this website.

In preparing any country programme 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.

CONTENTS

I. EXECUTIVE SUMMARY 1

II. INTRODUCTION 3

III. PROJECT DESCRIPTION 3

IV. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 3

A. Due Diligence on Existing Sites 8

V. SOCIOECONOMIC INFORMATION AND ASSESSMENT OF IMPACTS 9

A. General Socio-economic and Demographic Features of project Area 9

B. Enumeration of Affected Persons 10

C. Socio-economic Profile of Affected Households 10

D. Likely Impacts of Land Acquisition on Affected Persons 11

E. Indigenous Peoples 12

F. Gender Impacts, Needs and Priorities of Women APs 12

VI. INFORMATION DISCLOSURE, CONSULTATIONS, AND PARTICIPATION 13

A. Project Stakeholders 13

B. Consultation with APs and Communities during Project Preparation 13

C. Arrangements for Consultation during Updating and Implementing RP 14

D. Disclosure of Resettlement Plan 15

VII. GRIEVANCE REDRESS MECHANISM 15

VIII. LEGAL FRAMEWORK 17

IX. ENTITLEMENTS, COMPENSATION AND ASSISTANCE 20

A. Eligibility for Compensation and Other Assistance 20

B. Entitlement Matrix 21

X. INCOME RESTORATION, REHABILITATION AND ASSISTANCE TO VULNERABLE GROUPS 21

XI. RESETTLEMENT BUDGET AND FINANCING PLAN 21

A. Land Acquisition and Compensation Costs 21

B. Payment of Compensation 22

C. Compensation Rates for Calculation of Budget 22

D. Land Compensation Process 22

E. Source of Resettlement Funds 22

XII. INSTITUTIONAL ARRANGEMENTS 23

A. Roles and Responsibilities 23

B. Capacity Building Programme 24

XIII. IMPLEMENTATION SCHEDULE 24

XIV. MONITORING AND REPORTING 25

Appendix 1: PPL Memorandum of Understanding with Vaga ILG 26

Appendix 2: Notice for Public Consultation 31

Appendix 3: Land Investigation Report for Kilakila 32

Appendix 4: Disclosure of Information on Kilakila Land Acquisition 46

I. EXECUTIVE SUMMARY

1. The Port Moresby Power Grid Development Project is planned for the improvement of power supply in the National Capital District of Papua New Guinea. The project will assist PNG Power Ltd. (PPL) to expand renewable energy generation, connect currently unserved customers and significantly improve the quality of electricity supply. The Project will (i) upgrade and rehabilitate two hydropower plants (Rouna 1 and Sirinumu Toe-of-dam), (ii) extend the grid to approximately 3,000 additional households, including strengthening the distribution network (11kV mesh grid), and (iii) construct a new substation (Kilakila) and upgrade the existing substations. 2. The project does not require relocation of households or businesses. However, it requires the acquisition of a total of 5.47ha of customary land (0.64ha for the new Kilakila substation and about 4.83ha for transmission line). The subject land is covered in scrub with some small bushes. The owners have not used this land for decades as the land is in hilly terrain with minimum capacity for crop production. There are no trees nor does the land produce any other useful or edible products. Annual burn offs affect the existing vegetation which leads to the regeneration of tussock grasses and bushes. 3. The affected people (APs) belong to 3 clans namely, Vaga, Iarogaha and Uhadi Iarogaha. The total numbers of families are 198 with a population of 744 individuals. All members of the first clan (Vaga) are residents of Kilakila village while the latter 2 clans (Iarogaha and Uhadi Iarogaha) are residents of another village called Korobosea. The two pieces of land are registered in 3 Incorporated Land Groups (ILGs).The proposed land for acquisition is not currently utilized by the AP’s for purposes such as growing food. The APs include several who live overseas. Fuelwood is collected from around their resident villages and from other land parcels held by clan members. Studies indicate that the AP’s have sufficient land available nearby for food gardens and to collect fuelwood. Hence, the loss of land earmarked for acquisition for the project does not affect livelihoods, nor does it create any other socio-economic impacts. 4. APs have been consulted and were engaged in assessments during feasibility and preparation of the resettlement plan (RP). PNG Power Limited ( PPL) will further consult with APs and engage them during the process of up-dating the RP once detailed designs are completed. Vaga ILG officials have expressed their support to the project by signing a memorandum of agreement (MOA) to proceed with the acquisition of land in Kilakila village. The PPL is proceeding with signing a MOA with Iarogaha and Uhadi Iarogaha ILG leaders in the second village. They have already expressed their willingness to sell the land so that PPL can proceed with project implementation. The matrix shown below summarises eligibility and entitlements of APs.

Entitlement Matrix

Impacts Persons Entitlements

Permanent acquisition of land Customary land owners

Customary land owners will be provided with cash compensation at replacement cost

Temporary use of land Customary land owners

Rent will be negotiated with landowners before commencing to be paid for the entire period of use

Health and employment All APs Bid documents will include HIV/AIDS awareness

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5. This resettlement plan (RP) includes a grievance redress mechanism and a monitoring and reporting activity. PPL will recruit adequate and competent staff including 2 social development specialists in the Project Management Unit (PMU) as key-persons responsible for RP implementation. PPL will provide adequate resources to implement the RP including making arrangements for the payment of direct land acquisition costs, staff and consultant salaries and other expenses. A PMU will be established for project implementation that will conduct regular monitoring and reporting to the execution agency as well as the Asian Development Bank (ADB). A consultation and participation plan is included in the Project Administration Manual.

and prevention programmes in construction camps and surrounding communities

Unforeseen or unintended impacts

Concerned APs Determined as per PPL’s policies and ADB's safeguard policy

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II. INTRODUCTION

6. This land acquisition/resettlement plan (RP) describes principles, entitlements, procedures, and implementation arrangements with regard to acquisition of land for the Port Moresby Power Grid Development Project. Out of the 6 subprojects that make up the project, land acquisition is relevant only in the case of Kilakila subproject, which requires some customary land for the construction of Transmission Lines (TL) and a power substation. Accordingly, this RP has been prepared for the project covering the impacts under the Kilakila subproject. The RP is aligned with relevant laws and regulations of the Independent State of Papua New Guinea (PNG) and the guidelines of Safeguard Policy Statement (2009) of the ADB. Where PNG laws have differences with ADB policy, the latter will be applied. The footprint of the piece of land required to be acquired will be confirmed at the time of the detailed project design at which time further data will be collected and the RP will be up-dated.

III. PROJECT DESCRIPTION

7. The purpose of the project is to improve the reliability and capacity of Port Moresby power system to facilitate greater access to electric power by households, businesses and industries and thereby promote socio-economic development. In order that the power grid can be developed as envisaged, six subprojects have been planned. The combined effort of all of them is to stabilise current power supply, minimise interruptions including black-outs, frequent shut-downs and surges, improve the delivery of quality power through the installation of reliability enhancing equipment and the rehabilitation of power transmission and distribution system and increase energy access. The project will also support development of renewable power generation through the rehabilitation of Sirinumu hydro-power plant, and upgrading of the existing Rouna 1 hydropower plant. The upgrade and rehabilitation of generator and power house of existing Sirinumu and Rouna 1 hydro-plants will improve efficiency of power generation. The measures proposed to improve power distribution include construction of new substation, rehabilitation of distribution network, placement of capacitors, installation of equipment, processes and methods for power loss reduction. The execution agency (EA) for the project is Independent Public Business Corporation (IPBC) while PNG Power Ltd. (PPL) is the Implementing Agency (IA).

IV. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

8. A description of activities planned and the need for acquisition of land is summarised in Table 1.

Table 1: Subproject Activities and Land Acquisition Impacts

Subproject Activity Description Need for Land

Acquisition Current Land Ownership

1. Rouna 1hydropower plant

Dismantling of existing power station and installation of turbines and other fixtures. All activities confined to existing facility located on government land.

None Confined to government land. Formerly customary land previously acquired by Government

2. Refurbishment of Sirinumu hydro-plant

Refurbishment of turbines, penstock and generators. All activities confined within existing facility

None. Confined to government land. Formerly customary land previously acquired by Government

3.Up-grade 11 kV system to open loop and

Installation of new switching gear on power poles. Extension of grid

None. Confined to existing area under PPL ownership

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Subproject Activity Description Need for Land Acquisition

Current Land Ownership

grid extension to 3,000 households

4. Loss reduction program

Installation of electrical switch gear and stations and up-grading of distribution system by new cables either on existing poles or under ground.

None. All work is confined to existing public area and/or under PPL ownership

5. Kiliakila substation and transmission line

Construction of a new substation at kilakila and 6.1 km transmission line (including 20 towers)

0.64 ha for substation and about 4.83 ha for transmission line (total area of 5.47 ha) will have to be acquired

The entire land for the power line easement and substation is customarily owned

6. Substation capacitors Installation of capacitors at existing substations.

None. Within already fully-enclosed existing substations and other public area easements

9. As stated above, land acquisition is expected only in the case of the Kilakila substation subproject. Accordingly, this RP has been developed focusing on Kilakila subproject to manage the project’s land acquisition impacts. The project has followed appropriate engineering designs to minimise land acquisition and resettlement impacts. Among methods adopted to minimise land acquisition are to maximise the use of existing substations and to restrict the number of new substations to one, identifying a new transmission line alignment across the land owned by three clans instead of using a more direct route which would require the acquisition of several land parcels held by many people and clans, follow the new distribution lines along road easements rather than across private land, fix all switch gear to power poles or within properties owned by PPL and accommodate switching stations and capacitors within substations and/or on power poles. 10. As the project is only at a feasibility stage, the exact extent of the foot print that will be required for acquisition is currently not available. The relevant data will be collected including a detailed land investigation report for the transmission line that will be prepared for inclusion in the updated RP at the time of detailed design. 11. After analysis of currently available information, the approximate land area to be acquired has been determined. The area is in 2 separate land blocks owned by 3 clans. The first block is land situated in the site of substation and transmission is registered in the Vaga Land Group Incorporation (VLGI), known as Portion CC.45. The area required to be acquired is 4.91 ha (4.27 for transmission line+0.64 for substation) and belongs to 161 families. The total number of APs who own this land is 513. 12. The second block of land known as CC.79 is registered in two ILGs, one named Iarogha originally owned by 5 Head families while the second, Uhadi Iarogha clan originally owned by another 5 Head families. Each of the 5 Head families has subsequently been extended. Accordingly, the 5 Head families of Iarogaha now consist of 20 families whereas the 5 Uhadi Iarogaha families have increased to 17 families. The extent of the second block proposed for acquisition is about 0.56 ha which is jointly owned by a total of 37 (20+17=37) families. The total AP population is 231.

13. The larogha clan owns the land known as CC.79 where the tower 56 is located. The land owners claim that this portion was not acquired from them at the time PPL built the existing TL on their land to facilitate power transmission from Rouna hydro-power station to Boroko substation within the city. It is planned to build new towers on their land as well as towers on

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Uhadi Iarogaha land to connect TL from tower 56 to the first new tower (approximately 15 new towers) to be built on Vaga land. The PPL is in the process of writing a new MOA to purchase an area of 0.56 ha of land (which will also address the issue of compensation to the existing towers built on their land). The agreement reached between PPL and clan leader was witnessed by the study team on two occasions namely, 23rd and 28th of August 2012. A formal MOA will be signed followed by land investigation in the near future. 14. Accordingly, the entire area of 5.47 ha (both blocks) of land proposed for acquisition is owned by 744 APs giving the average land holding size of 0.007 ha per AP.

Table 2: Land Acquisition Summary

Reference Proposed Infrastructure Clans Proposed Land

Acquisition (ha)

Affected Persons

CC.45

Kilakila substation and 6.1 km transmission line

Vaga Land Group Incorporation

4.91 513

CC.79 0.80 km transmission line Iarogha and Uhadi Iarogaha

0.56 231

Total 5.47 744 Source: PPTA Studies (2012)

15. Maps 1 and 2 show locations of land under the ownership of two villages described above.The transmission tower 56 is located on Iarogaha land. The new transmission line will begin from tower 56 (Iarogaha clan land) and is expected to run parallel to Magi Highway on Iarogaha Uhadi land. The TL will finally join towers erected on Vaga clan land until reaching its destination at the substation. 16. There is no houses or other structures on the proposed land for acquisition. Hence, the acquisition of land will not involve relocation of people and/or businesses. The majority of the land is in the hilly areas (except for substation land) where the vegetation is scrub with occasional bushes. The land earmarked for substation was used temporarily for crops by other people, but they had already left the site by the time of PPTA. Land is entirely fallow (except for substation) and difficult to cultivate due to not having water and difficult access. Assessments indicate that the last time owners used this land for garden crops was in the late 1960s. Occasionally, people may collect fuelwood from the proposed project area (which will not be impacted by project as they can continue collecting fuelwood beneath transmission line) but this is not done by owners. Land owners do not obtain any income, food, livelihood item, medicine or any other product from the land. It is subject to annual burning.

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Map 1: Location of Kilakila Substation, Transmission Line and Villages

Transmission Line

Substation

Kilakila village

Korobosia village land

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Map 2: Location of Affected Land of Iarogaha ILG

17. The subject land (2 blocks) is jointly held by all clan members without any single person being able to claim ownership to any portion of the land. This is done to keep the entire group together which is the customary practice of the clan. The APs do not currently use the land proposed for acquisition. Several APs are living overseas. The AP’s do not grow food on the proposed land for acquisition. Their food is grown in other lands or bought in the market as this is an urban area. Fuelwood is collected from around their resident villages and from other land parcels held by clan members. All APs stated during socio-economic survey that they have sufficient land available for them both in nearby locations as well as in elsewhere to continue their food gardens and to collect fuelwood. The APs of land block known as CC.45 have ownership to 4 other land held by the same clan while APs of CC.79 own 6 other areas. Hence, the loss of land earmarked for acquisition for the project does not have livelihood or any other socio-economic impacts. 18. When asked about the potential future use of the land, the view of clan leaders is that they are waiting for other investors to come in and either lease out or sell their land for commercial activities. The leaders further said that there are several investment opportunities in the NCD. They are looking forward to receiving revenue from their land and investing the proceeds. The Vaga clan has already sold part of their land for two commercial ventures. It is to be noted that land acquired by PPL permits some limited access to APs. They are allowed to use the land for their activities such as fuelwood gathering, according to PPL’s policy. Land beneath transmission lines can also be used to plant annual crops if APs wanted. These opportunities can cushion the impact, if any, of land acquisition under the project.

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19. Given the total number of 744 APs , the impacted area per AP is 0.007 ha. In depth interviews with clan leaders suggest that the total area (affected + other lands) held per individual is about 3 ha. Hence, the total area of land held by the 744 APs is about 2,230 ha. Accordingly, the area lost per AP becomes 0.15% of all land held by each. Therefore, land acquisition and resettlement impacts of the subproject are insignificant and classified as Category B following ADB’s SPS. A. Due Diligence on Existing Sites

20. Rouna 1. The Rouna 1 hydropower plant to be refurbished by the project is an existing facility built in 1960s. The Rouna facility together with Rouna 1,2,3 and 4 occupy a land area of 2,241 ha which was previously acquired by the government from customary landowners. 21. The land where Rouna hydro-facilities are located was formerly owned by four clans, namely Omani, Nareme, Nadeka and Ianari. The total land area was purchased by the State between 1890 and 1900. While the government has documentary evidence suggesting that this land is now under the full ownership of the State, former land owners have disputed the ownership, boundary and size of the acquired land.1 The National Land Commission (NLC) inquired into these disputes in 2010 and 2011. The NLC concluded that the governement owns the land, but it also provided a settlement payment (K354,900) to the four clans. The NLC also confirmed that the boundary dipute has been resolved. However, the payment order by NLC was not settled on time by the government and this agitated the former landowners resulting in submition of a petition on 2 April 2012 to the Prime Minister demanding a sum of about K291 million and closure of the powerhouse on 21 June 2012. The government appointed a team to resolve the dispute and it was agreed between the parties on 22 June 2012 that a total of K500,000 (more than the NLC award) will be provided to the landowners. The agreed amount has been paid already. 22. The government has received a legal opinion from the Department of Justice and Attorney General, who has reconfirmed that land under the command of the Rouna complex is now fully owned by the State and that there are no outstanding land ownership issues. The Department of Justice and Attorney General has stated that if the former landowenrs still insist, they should pursue their claims through the court of law to prove the claim. The Department of Justice and Attorney Genernal has also advised that the government need to design a development package for assistance to former landowners as an act of good will.

23. The government is working on a development package that will include various services to the local people. For implementation of the package, the government plans to establish a Rouna Development Company (RDC) along the lines of the Sirinumu Development Company (SIDCO).

24. Majority of the local participants in the public consultation held on 21st August 2012 with Rouna land owners also demanded the local services from the government. While one clan leader at the consultation said that the land is owned by them and the State should pay them compensation for the use of their land, there were several other clan members, including women who expressed that they were interested more on development benefits than

1 The land was purchased by the Colonial Administrators between 1890 and 1900 from forefathers of the people who now claim ownership to the subject land. The original land purchase documents have been either misplaced by former land owners or copies may not have been delivered to them at that time. There is no way to verify the signatures of their ancestors who signed the sale documents at that time. This may be the reason for the present generation to believe that the land is still owned by them.

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compensation money. All they wanted was that the government provide important services such as road rehabilitation, provision of water, school rehabilitation, etc. for their benefit.2 After this discussion, neither the leader who wanted paid compensation nor other clan leaders and/or members raised any further concern on land ownership or compensation for Rouna 1 subproject. 25. Sirinumu. The land area occupied by the Sirinumu hydro-power plant built in 1960s is about 2ha. This hydro-power station is also located on land which was previously acquired from customary landowners. The former customary landowners were compensated for their land between 1961 and 1962. There are no issues or concerns of land ownership by former land owners. 26. The land under Sirinumu reservoir and head works was purchased by the Colonial Government between 1961 and 1962. The government subsequently formed the Sirinumu Development Company (comprizing local clan leaders) and has been providing a development package to the Company to be utilised for local community development activities. The former land owners in Sirinumu area have not made any claim for the ownership of this land. The leaders and clan members who attended the public consultation held on 10th August 2012 did not submit any claim for the ownership of this land or compensation. However, the majority requested that the government should seal the national road leading to the Sirinumu dam in addition to the continuation of current develoopment benifits. PPL has agreed that the current development assistance will be continued. 27. Other subprojects. Other subprojects do not involve any land acquisition as all proposed activities will be confined either to public road easements or to existing substations that are already owned by PPL. 28. The detailed assessment on existing sites is documented in a separate Involuntary Resettlement Due Diligence report.

V. SOCIOECONOMIC INFORMATION AND ASSESSMENT OF IMPACTS

A. General Socio-economic and Demographic Features of project Area

29. The Kilakila substation project is located in the NCD, whose population according to the 2011 Census is 318,128. The area of NCD is 260 km2. The land planned for acquisition is located in National Capital District Commission (NCDC)’s Ward 3 (Kilakila village, Vaga ILG) and Ward 6 (6-mile, Iarogaha and Uhadi Iarogaha ILGs) in Port Moresby. The transmission line area is situated in very rugged terrain and the land is not presently used for any productive purpose. As the land is poorly supplied by any services the owners of the two blocks of land reside in the villages within NCD. 30. The Kilakila village is located about two kilometres from the site of the proposed substation. Whereas the Korobosea village is located about five km away from their land which is expected to be acquired for the project. Both villages are located in Motu Koita Assembly area within the NCD. The population in the project area comprises of mainly urban people who are primarily engaged in different type of employment. In addition, they are also engaged in a large number of small-scale activities such as selling of various items to generate income. All owners of subject land are descendants of Koiari people.

2 PPL has responded positively to demands for local/community development activities and advised local clan

leaders to form ILG(s) to partner with PPL and the government for such initiatives.

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B. Enumeration of Affected Persons

31. There are an estimated 198 extended families and a total population of 744 of affected persons (APs), comprising of 432 children and 312 adults. One hundred and eighty five households are headed by men while thirteen are headed by a woman (widow). Table 3 summarises APs population by clan. Studies revealed that APs have lost their sub-clan identify which is expected given the urban lifestyle of the population.

Table 3: Clan and Population in Area Affected by Land Acquisition

Item Clan Families Population

TL & substation, CC.45 Vaga 161 513 TL, CC.79

Iarogaha 20 99 Uhadi Iarogaha 17 132

198 744 Source: PPTA Studies

C. Socio-economic Profile of Affected Households

32. Households: The average household size for the APs is 6.24. All of them have extended families, ranging from 2 to 5. 33. Language: The main language spoken by all APs is Motu though English is also widely spoken. Knowledge of Pidgin is weak. As seen in Table 4, English is the main language in Kilakila while the majority in Korobosea are fluent in Pidgin. The reasons are inter-marriages with other clans who do not speak Motu and the urban living where most communications are done in English. All APs at the public consultation requested that presentations are conducted in English.

Table 4: Language Proficiency by Resident Villages of Affected People (% APs)

Village English Pidgian Motu

Kilakila 100 57 91 Korobosea 80 83 76

All 88 72 82 Source: PPTA Studies (2012)

34. Education: The majority (50%) of household heads are educated to a primary level while 39% have been educated to a high school level. l. All women-headed households have received primary education only. 35. Housing: Seventy six per cent of APs live in permanent houses while the remainder are in impoverished houses. All interviewed APs or their family members own the houses they live in. 36. Water supply: Both villages have water service provided by Eda Ranu. All APs are connected to water where the supply is regular and continuous. As in several other parts of NCD, none of them pay water charges. 37. Power: Eighty four per cent of APs have electric power supplied by PPL. The remainder (16%) do not have power. They use candles and kerosene lamps for lighting. All the APs who do not have electricity expressed their willingness to connect to power. None of the APs use electricity for cooking and other income generation activities. Cooking and water boiling is done using fuelwood which is collected from their homegardens and other customary lands.

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38. Livelihoods: The main source of livelihood for 88% households is employment, either in government or private establishments. Several households were reported to be engaged in providing services such as transport and undertaking contracts for government and private companies. This is expected given the urban lifestyle of the APs. Less than 5 % households reported that produce from their gardens was entirely for home consumption. None of them derive any income from farming or cash crops production although some households reported sale of animals for buyers coming to their villages. A few APs in Kilakila village reported fishing, mainly for personal consumption. About 50% households have reported income from their home-based markets, an activity popular among women and girls. 39. Income and Expenditure: The main income sources are employment, contracts and other casual work. Many of the AP households have the informal market which brings in a regular flow of cash on a daily basis. There are 16 employees for every 10 households. Based on household survey data, the average annual household income is estimated as K18,733. All AP households purchase basic food, food ingredients and have reported social expenses of which their donations to churches are significant. The clothing is mainly simple and often consists of recycled and/or second-hand clothes. The annual household expenditure is K14,245. Some households have reported savings to be used for house building and to finance family feasts. There are no households amongst the APs who are in debt. The social network support APs both in cash, food and other necessities if required. 40. Access to Health: There are 3 disabled persons among the APs. The most common and recent sickness are scabies, malaria , flu and TB. The APs in Korobosea village use either the Port Moresby General Hospital or the urban government clinic at 3-mile while APs in Kilakila use Kilakila government clinic. They have to travel 1-2 km to access health service. 41. Access to Transportation: The majority of APs rely on public motor vehicle (PMV) services while several of them use their clan member’s private vehicles for transport. D. Likely Impacts of Land Acquisition on Affected Persons

42. As described earlier, the land use in the affected area is scrub vegetation with scattered bushes. The area catches fire annually and the entire vegetation is completely burnt down every year. The continuation of this process has left the area covered in tussock grass and other hardy vegetation. It does not have water and other facilities to grow crops. Hence, there is no risk of loss of any crop production or/animal grazing land. There is also no impact on the level of employment or income as the land is not used for any commercial or small scale activities. The only way the affected land supports livelihood is by the way of hunting which was reported as being infrequent. 43. All APs have land in other areas. The clan leaders revealed the average size of the land held per AP (without the affected land) of about 3 ha. This reveals that the question of becoming landless after acquisition of the subject land does not arise. 44. The proportion of APs using their land elsewhere for crops production is about 5%. AP households have home gardens where tree crops, cassava, fruits, coconut and some vegetables are grown. 45. About 60% households possess dogs, 30% pigs and only 3% chicken. Forty three per cent households have none. The large numbers of houses that own dogs suggest the

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prevalence of theft and other anti-social activities in these villages. The small proportion of houses conducting animal husbandry is expected due to the urban location of the APs. 46. Negative impacts on the social structure of the APs is not expected. The reasons are that land acquisition will not make APs landless. None of the APs reside in the affected land so the need for relocation does not arise. There is no expected adverse impact on cultural identitiy or heritage of the affected people resulting from land acquisition as all of them have land within the village. There are no sacred sites including burial ground in the land earmarked for acquisition. 47. The clan leaders and ILG chief executives have disclosed to the survey team that they are hoping either to lease or sell their unproductive and unusable land for commercial purposes such as warehouses, pipeline easements, etc. The two groups have already disposed some of their land for commercial activities. E. Indigenous Peoples

48. The acquisition of customary land is not expected to impact the livelihoods, income and cultural identity of landowners who can be described as descendants of Koiari people. The present population has intermarried with different clans and people from other areas. The APs are able to continue with their land-based customary practices and livelihoods as all of them have similar lands elsewhere. All customary landowners broadly support the sale of their land for power grid development and the construction of the substation as the land does not have any alternative use. In the interim, they will receive cash for the land taken over by PPL. They are hoping to sell additional unproductive land to future investors as this will enable them to generate cash for investment. The acquisition of this land will not either negatively or positively affect their customs, cultural integrity, livelihoods or income. F. Gender Impacts, Needs and Priorities of Women APs

49. The gender issues among APs are not different in the project area from the overall situation in the country, where women’s position is disadvantaged due to their lower social status affecting their access to basic services (i.e. health services and education), limited participation in decision making and their income earning capacity. Firewood is the major source of cooking fuel for almost all APs, women and children usually collect fuelwood for cooking, a time consuming and back breaking task. Women in the project area travel around their villages to collect fuelwood. They need assistance during the project to increase their participation and engagement in the project design and implementation. The RP will take into account these needs and ensure that women are continuously consulted throughout the project cycle. 50. The main request of women is to provide quality power to their homes that according to their perceptions would add light to their life. The few households that do not have power at present are eager to get connected. The use of electricity for lighting is likely to reduce women’s drudgery. The socio-economic assessment reveals following benefits for women APs: (i) improved living standards brought about by improved lighting and reduced dependence on kerosene lamps, (ii) improved household (i.e. cooking) facilities, (iii) improved access to information technology (i.e. cell phone charging) among others, (iv) enhanced environment for students in high school. The reduced household expenditure on costly and inefficient kerosene lamps may allow the purchase of other non-energy items.

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VI. INFORMATION DISCLOSURE, CONSULTATIONS, AND PARTICIPATION

A. Project Stakeholders

51. The primary stakeholders for the subproject are the affected households. They will have restricted access to a small portion of their land. On the positive side, they will all have access to quality power supply with reduced shut-downs, black-outs and low-voltage problems. The second group includes households in Kilakila and Korobosea villages that are not affected by land acquisition. They will have access to an improved power supply as in the case of APs. The final stakeholder category is the provincial and national government agencies including PPL. All of them will be involved in the acquisition of land, valuation, survey, land investigation and in the payment of compensation for land. B. Consultation with APs and Communities during Project Preparation

52. PPL has consulted APs and other stakeholders during project preparation in several ways, including (i) the socio-economic assessment and inventory of losses; (ii) community meetings; (iii) focus group discussions with clan leaders, households and women groups; (iv) group meetings; (v) public consultations; and (vi) observations. The affected clan leaders have expressed their support to the project through signing of MOA with PPL for the sale of land for the construction of transmission line and substation (Appendix 1). They have agreed to cooperate with the land survey, investigations and valuation officials in their area. They cooperated fully with the survey team during the socio-economic assessments. Table 5 summarises consultations and assessments that were undertaken in their villages.

Table 5: Consultations and Assessments in Affected Villages

Date Activity APs / Representatives Client/PPTA Team

March Land survey and investigation; valuation

Actg Chairman & Secretary, Vaga ILG

Customary Land Officer, Surveyor, LMCS

1 member

15th

March 2011

Agreement written between ILG Vaga and PPL for the sale of land cc.45

ILG officials PPL Land Management team

19th

July 2012 Preliminary discussion to find out information on ILG, people, land and livelihoods

Actg Chairman & Secretary Vaga ILG

Manager, LMCS & ISGS2

30th

July 2012 Genealogy and Identify Aps Secretary, Vaga ILG Manager, LMCS & ISGS

2nd

August 2012

Identify affected land & preliminary investigation to identify land owners

Councillor/family Head of Korobosea village

Senior Lands Officer, Motu Koita Assembly; Manager, LMCS; ISGS

15th

August 2012

Identify land owners; preliminary discussion with clan leaders

2 clan leaders, 1 family head and 2 land owners

Manager, LMCS; ISGS

21st August

2012 Further negotiation of land/access for socio-economic assessment

Secretary, Vaga ILG Manager, LMCS; ISGS

23rd

August 2012

Collected genealogy, checked & verified, discussion on future activities including assessments AND to identify family details and genealogy

Chairman, Secretary, Treasurer, Executive of Vaga ILG; Clan leaders / ILG members of Iarogaha

Manager & Senior Staff Member, LMCS; Safeguard Specialist, ADB Manila; ISGS

24th

August 2012

Public consultation All executives of Vaga ILG; 32 Aps

Director, PM/NEC; Manager & staff, LMCS; ADB staff; PPTA safeguard team

26th

August 2012

Socio-economic assessment Vaga ILG officials; 20 APs Manager, LMCS; ISGS, PPTA field staff

28th

August 2012

Socio-economic assessment Iarogaha and Uhadi Iarogaha ILG officials

Manager, LMCS; ISGS, PPTA field staff

1Land Management & Community Services (LMCS), PPL

2International Social & Gender Specialist (ISGS)

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53. There was a well-publicised and well-informed public consultation conducted on 24th August 2012 to present project details, elaborate on impacts and to seek their feedback on mitigation and other aspects of project design (Appendix 2). In addition, there has been several other contacts and meetings held between the APs and PPTA team/representatives from PPL between July – August 2012 in Kilakila and Korobosea villages. The objective of these meetings were to (i) disseminate information on scope of the proposed project; (ii) identify land users and landowners of the proposed site; and (iii) discuss information on land acquisition procedures under the relevant Acts that will guide land acquisition and compensation process for the subproject. At the conclusion of the public consultation, the memorandum of agreement (MOA) between the landowners and PPL was signed and the cheque of K150,000 for part of the remaining portion was presented to the Vaga ILG. 54. The major issues and concerns raised by the APs and agreements reached during the consultation are summarised below:

Executives of Vaga and all APs present agreed to proceed with the sale of the portion of land to PPL

Executives agreed to cooperate with the social assessment team

All participants appreciated the consultation and expressed their willingness to participate in future events

Participants expressed their interest in providing security to the new substation and to seek employment in unskilled work in relation to maintenance of the transmission line.

Participants look forward to the remaining portion as the replacement price for their land. PPL/LMCS Manager replied in the affirmative and that the remaining portion will be delivered in due course

Health and safety issues of electric transmission were raised by participants. Response provided by PPL staff. Participants requested that construction staff be screened for HIV/AIDS before entering site

Several environmental concerns were raised and discussed. 55. Some concerns around health and safety issues have been also raised by the community groups. The danger of electric fires and electrocution were their main concerns. The surveys and assessments revealed that there is a high awareness about HIV/AIDS amongst APs. The women participants of Kilakila requested that construction workers be tested and cleared for HIV/AIDS before working in the project site. 56. The National Capital District Commission (NCDC)’s Ward Councillors and officials of community and social services were consulted in the second week of August 2012 to discuss the project’s potential community and gender issues. The NCDC relevant staff will cooperate in meeting, discussions and awareness raising events during project implementation. Their participation is critical to win the confidence of residents and work in support of the project. Consultations were also conducted with churches which will be continued by PPL during project implementation. PPL will also coordinate with Ward Development Committees and Community Development Committees established within LLGs in the NCD. C. Arrangements for Consultation during Updating and Implementing RP

57. The PPL will organise consultations with affected two villages during project implementation. Participants will include traditional and clan leaders, ward councillors and APs, and all other interested members of the community. Separate meetings will also be organised

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with women to continue to understand and discuss their preferences and concerns at that stage. PPL will be joined during meetings by the Provincial Lands Officer (PLO) and/or District Lands Officer (DLO) and representatives of the Provincial and District Administrations, office of the Valuer General, and LLG Ward Councillors. PPL will present the scope of subproject works. In the presence of the landowners, PPL will confirm the affected land; the boundaries of parcels will be marked and recorded. 58. A combined CPP incorporating both social and environmental issues for implementation phase has been prepared and attached in the PAM. 59. PPL will continue discussions with village leaders and affected landowners to up date socio-economic information in order to up-date the RP. 60. PPL will also inform village leaders and affected landowners about the policies and procedures regarding compensation for land. In addition, PPL will inform the community regarding when and how compensation will be paid to eligible APs. 61. PPL together with Customary Lands Officer (CLO) will consult with each of the affected landowners of Korobosea village during land investigation and update relevant information about the affected people and inventory of losses. The land investigation report (LIR) will include signatures of APs witnessed by village leader(s) and LLG Ward Councillor(s). The land investigation report for Kilakila has already been completed and signed off (Appendix 3). 62. Before the completion of the updated RP, PPL will conduct a public meeting and/or provide information in the local language to village leaders and APs summarising the information on affected assets, the compensation rates and entitlements, schedule of compensation payment and monitoring procedures. D. Disclosure of Resettlement Plan

63. In compliance with ADB requirements, the draft land acquisition/resettlement plan3 has been disclosed on the ADB website. In case of any change in the subproject alignment or location, the RP will be updated and disclosed to the APs. The RP, an information booklet will be made available in English, the official government language in Papua New Guinea, in an accessible public location. A summary brochure has been prepared for distribution in the project area (Appendix 4). The draft and final RP will be also disclosed on the ADB website upon submission by the PPL.

VII. GRIEVANCE REDRESS MECHANISM

64. A grievance redress mechanism will be established to receive and address project- related concerns and to resolve land related disputes that may arise during implementation. APs will be informed by PPL via methods as appropriate about the grievance redress mechanism and methods of making use of the same. Other than disputes relating to land ownership rights that will be undertaken by the court of law, most grievances related to compensation calculation and disbursement, and other assistance are expected to be resolved at the PMU level. The community-based and culturally appropriate disputes resolution methods that are in place will be made use of to resolve concerns of APs. For this purpose, executives of three ILGs and

3 All APs speak and understand English. The public consultation was held in English at the request of clan leaders and APs.

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ward councillors will be thoroughly briefed by PMU staff about project activities, key-contacts and other relevant information. 65. APs are encouraged to resolve their disputes and grievances at the local level where clan leaders, ward councillors and village magistrates will have an important role. This is the first level available for APs to resolve disputes, especially land disputes other than ownership matters. The community leaders will be requested by PMU to keep a record of all disputes submitted to them by APs for reporting. 66. The second level of disputes resolution is PMU where aggrieved persons are requested to lodge a project-related complaint. The safeguard staff and consultants attached to PMU will assist APs in registering their complaints. The PMU project manager will consider the complaint and within one week will convey a decision to the APs. The safeguard staff as well as local government officials will assist the project manager in reviewing and addressing the complaint. The safeguard team will also facilitate communication between APs and the PMU in this process. If the APs are not satisfied with the PMU’s decision, they may then take the grievance to the Chief Executive Officer (CEO) of the PPL. The CEO has two weeks to consider the complaint and following this (s)he will resolve the complaint. Should APs are not satisfied with the decision of the CEO, they may take the grievance to the PNG judicial system. 67. All non-ownership related land disputes will be resolved by the village mediation process or by village courts. Any matter relating to land ownership will be taken to the District Land Court under the provisions of the Land Disputes Settlement Act (2000) which establishes legal procedures for resolution of disputes on customary land. The ILGs are responsible for dealing with disputes within the group. External mediators will facilitate resolution in case disputes are between different clans or ILGs. The GRM will not impede affected persons' access to the courts should they wish to access judicial and administrative remedies directly. 68. An initial step will be for the PMU in coordination with CLO to facilitate procedures to resolve land disputes based on a process of mediation. As required, the participation of appointed and traditional leaders will be encouraged to achieve satisfactory resolution of issues at the local level. If that fails, procedures as set out in the Land Disputes Settlement Act (2000) will be followed. The Act promotes a process for resolution of land disputes through (i) mediation, followed by (ii) appeal to the designated courts. The mediation process is based on the principles of traditional dispute settlement. The steps in the dispute resolution process include:

(i) Local Land Mediation: The CLO brings together the disputing parties with the mediator. If this fails, the matter can be referred to the Local Land Court.

(ii) Local Land Court: The case is heard before the Local Court Magistrate for determination. If the litigants are not successful, they may appeal to NCD land court.

69. In the event of land-related grievances that cannot be resolved through mediation, PPL in consultation with CLO will hold the compensation amounts until the case is settled in courts, after which compensation will be paid in full, in accordance with the entitlements of the affected person. 70. The GRM established for RP implementation is graphically shown in Figure 1.

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Figure 1: Grievance Redress Flow Chart

VIII. LEGAL FRAMEWORK

71. The policy framework and resettlement entitlements are based on the laws and regulations of the government and the ADB's safeguard polity. The principal PNG laws include: (i) the 1975 Constitution; (ii) the 1996 Land Act; (iii) Land Groups Incorporation Act (1974); (iv) Land Groups Incorporation Amendment Act 2009; (v) the 2000 Land Disputes Settlement Act; and (vi) Voluntary Customary Land Registration Act 2009. The relevant ADB policies include Safeguard Policy Statement (2009) and Gender and Development Policy (1998). 72. The PNG Constitution adopts customary practice as part of the underlying law of the country and recognises the property rights attached to customary land. According to the law, customary practice and tradition comprise the informal rules, rights and obligations pertaining to an individual or group. Customary practice is recognised by court where it is not inconsistent with written law. The Constitution also guarantees the right of the citizens to protection from unjust deprivation of property. No land or interest in land may be acquired compulsorily by the government except as it is required for public purposes or other justifiable reasons. In the event of expropriation of land, just compensation must be made by the expropriating authority. 73. The Land Act (1996) deals with ownership and use rights of customary land. It also sets out the procedures for the government to acquire customary land required for public purposes. Based on the Land Act 1996, the PPL follows the following procedures for acquisition of land for its projects:4

(i) The PPL employs private surveyors5 to determine boundaries, location, size and area of the land to be acquired, who works with ILG staff. The surveyor in consultation with land owners determines the boundary and establish peg marks on

4 Most of these procedures have been completed and a Land Investigation Report (LIR) prepared for Kilakila land

held by Vaga Clan (Appendix 4). Similar procedures will be followed for the acquisition of land held by Iarogaha and Uhadi Iarogaha Clans. 5 This process is adopted to fast-track land survey process. PPL’s experience is that it takes as many as 2-3 years if land survey is to be undertaken by government surveyors.

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the ground. After the completion of the survey, it is submitted for the approval and registration by the Surveyor General;

(ii) The PPL requests the Department of Land and Physical Planning (DLPP) to conduct land investigation for acquisition. The work is implemented by the staff of district’s Land Administration of the Central Province. The CLO is also involved in the process;

(iii) The District Land Officer (DLO) in the presence of ILG officials conducts the land investigation and prepares a Land Investigation Report (LIR) including ownership genealogy, rights and interests held in the land; and, estimated value of improvements to land in consultation with the landowners and relevant government offices;

(iv) The PPL employs a private valuer6 to determine the replacement cost of the land; (v) Using the land value determined by the valuer as the basis, PPL in the presence of

CLO conducts negotiation with the Executives of ILGs. Once an agreement is reached, it is recorded and signed by ILG officials, CLO and the PPL before presenting to DL&PP;

(vi) The LIR is submitted to the DL&PP together with all other documents for checking, registration and the issuance of Native Land Number.;

(vii) When the process is completed and the land is transferred by DL&PP, PPL receives the certified title;

(viii) Once the purchase price is agreed, PPL raises cheques and prepares purchase documents. The signed documents and cheques in the name of the relevant ILG are presented to the Chairman of ILGs.

74. The Land Groups Incorporation Act (1974) recognises the corporate nature of customary groups, which can register as an Incorporated Land Group (ILG) with the Registrar of Incorporated Land Groups. Once registered, an ILG may acquire, hold and dispose of customary land, enter into agreements for its use and management, and distribute any product or profits from the land. This Act has been established to encourage greater participation by local people in the national economy through the utilisation of their land with greater certainty of title. The Act attempted to achieve this through the legal recognition of the corporate status of customary groups. The important issues of this law applicable to the RP are as follows:

Every ILG must have a constitution and submit this document at the time of registration;

ILG must have a dispute-settlement authority, for dealing with disputes between members or between the ILG and a member, including disputes over entitlement to membership;

The above authority may be a person or persons specified by name or position, or determined in the manner specified in the ILG’s constitution;

ILGs as an entity do not own customary land. Ownership remains with the collective customary landholders and clans;

An ILG organises landowners and clans as a corporation recognised by law, so that it can enter into commercial deals.

75. The Land Groups Incorporation Amendment Act 2009 and the Voluntary Customary Land Registration Act 2009 were brought into effect in 2011, following recommendations from the National Land Development Taskforce. The latter Act facilitates the

6 The engagement of a private valuer is done to fast-track the process. The fact that Government valuers are in

short-supply takes a much longer period of time to complete the process. All private valuers eligible to undertake this task are members of the Valuation Board of PNG

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voluntary registration of customary land, to be known as “registered clan land”, and makes that land available for development through the use of ILGs. The intention is to allow landowners who wish to develop their land, an alternative to permanent alienation under the Land (Tenure Conversion) Act 1963. 76. A newly created Director of Customary Land Registration will be established for the registration of clan land. Upon registration, a certificate of title is issued in the name of the ILG and the ILG can then lease or mortgage the land to raise funds for development. Customary law ceases to apply to the land, with the exception of inheritance. The strengthened consultation processes in the legislation are designed to overcome many of the breaches of customary landowner’s free and prior informed consent experienced in past development and land acquisition processes. 77. The land registration (Amendment) Act introduces two main changes to the land registration process. The first is that on receiving an application, the Director must independently verify the membership of the ILG and make a preliminary check of the proposed boundaries to make sure that it is a legitimate application. The second improvement is that once the Director has accepted an application on a preliminary basis, there is a more thorough process to identify any boundary disputes or competing interests over the land before registration occurs. For example, the Director must place the proposed registration plan on public exhibition for up to 90 days, and must call for and resolve any objections before a Certificate of Title can be issued. The success of these more stringent provisions in the reformed process will depend on the ability and commitment of the government to administer and enforce the new laws. Landowners are typically reluctant to engage in land registration of their customary land because of the failings in the land administration systems of the past. 78. The Land Disputes Settlement Act (2000) sets out the procedures for resolution of disputes involving customary land. The Act provides for a land dispute committee at provincial level and land courts at local, district and provincial levels. The committee can appoint land mediators. The Act promotes resolution of disputes through mediation based on the principles of traditional dispute settlement. If mediation fails, it is followed by appeal to the courts. Field studies demonstrate that mediation and local land courts are very active in resolving land disputes. The first step on land dispute is negotiation between the affected party and an experienced negotiator. If this fails, the problem is mediated by a mediator. If this also fails, it goes to the next level which is local land court. In depth interviews with village Magistrates reveals that the majority of land disputes are resolved at the local level. However, disputes relating to land ownership are resolved only at the court. 79. ADB’s Safeguard Requirements on Land Acquisition and Resettlement: ADB's SPS requires ADB-assisted projects to (i) avoid resettlement impacts wherever possible; (ii) minimise impacts by exploring alternatives; (iii) enhance, or at least restore, the living standards of DPs/Aps in real terms relative to pre-project levels; and (iv) improve the living standards of the poor and other vulnerable groups. It covers both physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of land acquisition or restriction on land use, or on access to parks and protected areas. 80. The SPS’s key policy principles are: (1) Screen early and assess resettlement impacts; (2) Carry out consultations with APs and develop a grievance redress mechanism; (3) Improve/restore livelihoods of APs through land-based strategies, replacement of lost assets, compensation at replacement cost, and additional benefits, as appropriate; (4) Provide

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appropriate assistance to physically displaced APs; (5) Improve living standards of poor APs and other vulnerable groups; 6) develop transparent procedures for negotiations; (7) provide assistance and compensation to non-titled APs for loss of non-land assets; (8) Prepare RP or due diligence reports, with necessary provisions; (9) disclose RP to APs and other stakeholders and document the consultation process; (10) conceive and execute resettlement as part of the project; (11) deliver entitlements to APs before their physical or economic displacement; and (12) monitor and assess resettlement outcomes. 81. Where there are gaps between PNG laws and the ADB SPS requirements on land acquisition and resettlement, the Project will ensure that these gaps are filled by measures to meet the minimum SPS stipulations. For example, PNG law does not specifically require monitoring and assessment of land acquisition or resettlement outcomes, but this RP will include provisions to monitor the impacts on APs. The monitoring reports will also be publicly disclosed, including to those affected by the project. 82. Resettlement Policy Principles for the Project: The project will comply with both ADB’s safeguard requirements and PNG’s laws and regulations applicable to land acquisition and resettlement. The resettlement objectives and policy principles adopted for the project are as follows:

(i) Land acquisition and resettlement will be minimised through careful engineering design. In particular there will be no physical relocation of people and/or businesses;

(ii) APs will be consulted meaningfully over the project cycle, and effective mechanisms will be established for hearing and resolving grievances;

(iii) The RP will be updated after the detailed design; (iv) APs who are customary landowners will receive compensation at replacement cost for

their loss of land to ensure that they will be as well off as without the Project; (v) Such compensation will be paid to APs prior to commencement of civil works; (vi) Particular attention will be paid to women, women-headed households, the elderly and

other vulnerable people’s customary land and property and inheritance rights; (vii) Land acquisition will be conceived of as part of the Project and related costs will be

included in and financed out of the Project cost; and (viii) Resettlement impacts , including any unforeseen losses that may occur during

construction will be monitored and remedial steps taken as required

IX. ENTITLEMENTS, COMPENSATION AND ASSISTANCE

A. Eligibility for Compensation and Other Assistance

83. The initial identification of APs and affected land and the negotiation for land acquisition has started at the PPTA phase and LIR completed for Kilakila substation. The PPL will further consult with affected communities and undertake detailed land surveys and investigation for another location in coordination with land administration authorities to collect relevant information. Once all land owners have been identified and confirmed by DLO, the final census date will be determined for PPL to undertake the census. The date of LIR completion will be the “cut-off date” for eligibility for compensation and rehabilitation assistance. Following is the eligibility for compensation to APs:

(i) Landowners and/or users that have documented claims to the affected land as of the cut-off date will be eligible for compensation and/or rehabilitation assistance as per the project policy.

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(ii) Any person or group that occupies or uses the land identified for the project construction after the cut-off date will not be eligible for compensation and/or assistance; they will be required to move from the land as per the provisions of the Land Act.

(iii) Legally recognised (including customary rights) or titled APs will receive compensation for land acquired by the project. Households headed by women and other vulnerable households will receive further assistance.

B. Entitlement Matrix

84. The eligibility and entitlement are summarised in Table 6.

Table 6: Eligibility and Entitlement Matrix

Impacts Entitled Person(s) Entitlements

Permanent Acquisition of Land Legal owner(s), including customary land owners

Landowners will be provided cash compensation at replacement cost.

Temporary Use of Land (if required) Legal owner(s) of land and customary land owners

Rent will be negotiated with landowners before commencing, to be paid for the entire period of use.

Health and employment All APs Bid documents will include HIV/AIDS awareness and prevention programmes in construction camps and surrounding communities. Health and safety impacts are addressed in the subproject environmental management plan.

Unforeseen or unintended impacts Concerned Aps Determined as per PPL’s policies and ADB's safeguard policy.

X. INCOME RESTORATION, REHABILITATION AND ASSISTANCE TO VULNERABLE

GROUPS

85. PPL will provide following assistance to APs: (i) skills training by contractors particularly for women; and (ii) priority employment for APs (vulnerable APs in particular) in project unskilled jobs. The female-headed households will get priority in these activities.

XI. RESETTLEMENT BUDGET AND FINANCING PLAN

A. Land Acquisition and Compensation Costs

86. The cost for land acquisition and compensation is presented in Table 7. The land acquisition and compensation costs are based on PPTA estimates. The compensation costs will be confirmed by an independent valuer before updating the RP that the negotiated price for both locations represents a fair market price.

Table 7: Land Acquisition and Compensation costs

Serial N° Item Unit Cost (Kina) Total Cost (Kina)

A. Land Acquisition & Compensation

1 Registration & title transfer fee 2,500 x 2 5,000

2 Land survey, valuation, 16,500 x 2 33,000 3 Land compensation To be confirmed Sub-total A 38,000

B. Implementation

3 Consultation and implementation 14,000 4 Monitoring and reporting 20,000 5 Contingency (A+ B) 221,800

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Grand Total (A+B) 255,800

87. The cost of salary and reimbursements for international social safeguard specialist and the relevant cost for national consultant are not included. Similarly, transport costs for investigations, surveys, etc. are also not included. These will be included in the project management costs. B. Payment of Compensation

88. The PPL is responsible for payment of compensation to ILGs. The procedures to be followed include:

(i) Manager, Land Management and Community Services requests PPL’s CEO to authorise compensation amount and the approval of the cheque;

(ii) The PPL will inform ILGs about the date, time and place as well as documentation required, for payment of compensation;

(iii) At the time of payment, the Chairman of ILG will sign a compensation document to acknowledge the amount and receipt of payment; and

(iv) When compensation payments are complete, the MLCS will prepare a report and submit it to CEO who will present this to ADB via IPBC.

C. Compensation Rates for Calculation of Budget

89. The project adopts the principle that all compensation for affected land will be paid at replacement cost or market price. PPL has negotiated with ILG officials at Kilakila substation and transmission line. The price will be confirmed by an independent valuer before updating the RP that the negotiated price for both locations represents a fair market price. 90. It is a requirement that private valuers who undertake valuations are registered with the Valuation Board of Papua New Guinea. The registered valuers are provided with valuation rates by the Valuer-General (VG) of which the latest rates have been released this year. The land price determined by a valuer is an indication which forms a good basis for negotiation with land owners. If compensation rates do not meet fair market price or the payment is delayed, compensation rates will be updated at the time of RP update to ensure APs receive compensation at replacement cost or market price at the time of compensation payment.

D. Land Compensation Process

91. Once the PPL has agreed compensation values with clan leaders/Executives of the relevant ILGs, the PPL raises cheques following the process described in paragraph 85 to be handed over to the land owners. Once the total agreed price for land has been paid, PPL requests a meeting of all land owners where the cheque will be presenetd to the relevant Chief Executives of ILGs. A receipt for the transaction is obtained for presentation to the DL&PP which will complete the land acquisition process. It is up to the ILG officials to disburse compensation amount among all clan members following the accepted customary practice. E. Source of Resettlement Funds

92. All costs for the project related to land acquisition, compensation and allowances, operation and administration costs, surveys, monitoring and reporting will be financed by PPL using own funds.

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XII. INSTITUTIONAL ARRANGEMENTS

A. Roles and Responsibilities

1. Independent Public Business Corporation (IPBC)

93. IPBC, as EA for the project will have overall responsibility of planning, implementation and monitoring of activities related to acquiring land and compensating for losses. It is also authorised to provide approval and key agency to communicate with ADB. 2. PNG Power Ltd

94. As the Implementing Agency, PPL has the responsibility, delegated by the IPBC, to carry out day-to-day activities related to land acquisition and resettlement. These include:

(i) Collaborating with, and assist DLO, CLO, valuer and surveyor in consultation with ILG officials to carry out relevant work in compliance with the POMPGDP policies and ADB requirements;

(ii) Select, authorise, mobilise and pay for the private valuer and surveyor; Establish PMU and Safeguard Cell within; Recruitment of staff and consultants;

(v) Staff training; (vi) Providing resources to carry out surveys, investigations, assessments and

consultations; (vi) Collaborating with DLO and CLO for negotiations and agreements with ILGs; (vii) Carrying out consultations with affected communities and, ensuring that all

stakeholders are informed about the project, its policies and procedures; ensure that all requirements are carried out concerning public disclosure of the provisions for land acquisition and compensation; and, oversee and monitor the grievance redress process;

(viii) Reviewing and endorsing the draft RP prior to submitting it to IPBC and, subsequently, to ADB for approval, ensuring that all matters related to land acquisition are complete and properly reported;

(ix) Monitoring the process of allocation and disbursement of funds for compensation, and ensure that funds are available and compensation is paid in a timely manner; and

(x) Carrying out all other activities including internal monitoring of land acquisition activities.

3. Land Administration of Central Province

95. On the advice of PPL, the Land Administration of the Central Province assigns a DLO to conduct relevant land activities. The responsibilities are to visit affected land, conduct surveys of land required for the project in consultation with ILG officials, prepare the LIR and submit to the Department for necessary action. 4. Department of Land Management and Physical Planning

96. DLM&PP will process all reports and following the established procedures, transfer land title to PPL. The new title will be issued to PPL once the entire process is completed and relevant payments have been made.

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5. NCDC

97. Ward Councillors will facilitate all consultations with local communities, affected people and other stakeholders. They will be responsible for collaborating with PPL to organise and carry out these consultations on a participatory basis. They will also be assisting to resolve disputes of APs. B. Capacity Building Programme

98. The capacity building programme focusses on strengthening PMU/SU with regard to RP implementation. There will be one international and one national social safeguard specialists attached to the PMU who will have the pivotal role in the implementation of the capacity building and supporting PPL to address land acquisition and related issues under the project. An independent valuer will be recruited to confirm that compensation rates for land acquisition represent market price or replacement cost. 99. During the initial stages of implementation, a training programme will be implemented for relevant PPL and other agency staff associated with the project. The responsibility for planning and implementation lies with the PMU which will be adequately staffed with safeguard officers and experienced consultants. The training programmes will cover subjects such as: (i) the government policies and procedures for acquisition of land; (ii) ADB policies and procedures on social safeguards; (iii) applying the government and ADB policies in the project; and, (iv) methods on surveys and data collection to up-date RP and conduct community consultations and awareness programmes. The training will target people from PPL, Ward officers, relevant staff of the Valuer General and other organisations involved in land acquisition and compensation activities.

XIII. IMPLEMENTATION SCHEDULE

100. Shown in the Table below are implementation schedule for resettlement activities split by (i) up-dating the RP; (ii) implement the RP; and, (iii) monitoring activities including grievance redress. It is expected that MOA with ILG Iarogaha and ILG Uhadi Iarogaha, survey of their land and LIR will have already completed before the commencement of implementation of RP.

Table 8: Timeline for Implementation of Resettlement Plan

Serial N° Activity Schedule

Up-dating & Approval of Resettlement Plan

1 Confirm land requirements based on detailed design Month 1 2 Training & orientation for staff Month 1 3 Follow up consultation with affected communities on implementation of RP Month 2 4 PMU/SU up-date census, inventory of losses and socio-economic studies

as the basis for up-dating RP Month 2

5 Public consultations Month 2 & 5

6 RP finalised and fully up-dated Month 3 7 PPL work with Councillors and ILG officials to disclose updated RP Month 3

8 PPL submits the updated RP via IPBC to ADB for approval and posting on ADB website

Month 4

9 ADB no-objection to proceed Month 4 10 PPL issues cheques to PLO for execution of land acquisition and payment

of compensation Month 4

11 PLO completes land purchase and report to DLPP for follow up activities Month 4

Implementation of RP

12 PPL submits to ADB the land acquisition completion report Month 5 13 ADB issues notice to proceed Month 5

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Serial N° Activity Schedule

14 Award of civil works contracts Month 5 15 Clearance of acquired land Month 6 16 Start of civil works Month 6 17 Payment of compensation, as required, for unforeseen damages, losses

and temporary damages Month 7

18 PPL implements community development programme Month 5 onwards

Monitoring Plan

19 PPL establishes AP socio-economic baseline Month 2 20 PPL conducts on-going monitoring and submits progress report to ADB Continuous 21 PPL conducts post-resettlement survey and final monitoring report Month 25

Note:Implementation of grievance redress mechanism and consultation and participation and, training activities are continuous

XIV. MONITORING AND REPORTING

101. PPL will monitor all activities associated with land acquisition, disbursement of compensation to ILGs, training and the overall implementation of RP. The scope of monitoring includes: (i) compliance with the agreed policies and procedures for land acquisition; (ii) prompt approval, allocation and disbursements of funds and payment of compensation to APs, including supplemental compensation for additional and/or unforeseen losses; (iv) remedial actions, as required; and progress in the implementation of grievance redress mechanism. The monitoring will also cover social impacts of the subprojects and whether APs improve their pre-project living standards, incomes and livelihoods.The PPL will prepare and submit semi-annual progress reports to ADB as part of project performance monitoring. The PPL will also submit a subproject land acquisition completion report to ADB when compensation has been paid.

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Appendix 1: PPL Memorandum of Understanding with Vaga ILG

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Appendix 2: Notice for Public Consultation

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Appendix 3: Land Investigation Report for Kilakila

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Appendix 4: Disclosure of Information on Kilakila Land Acquisition

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