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SOCIAL MONITORING REPORT

Semi-Annual Report

(July-December 2016)

Loan/Grant Number(s): L2851-NEP; G0284-NEP

Integrated Urban Development Project (IUDP) Prepared by Department of Urban Development and Building Construction IUDP, Project Coordination Office, for Ministry of Urban Development and the Asian Development Bank

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CURRENCY EQUIVALENTS

(As of 30 June 2016)

Currency unit - Nepalese (NPR)

NPR 1.00 = $0.00921

$ 1.00 = 108.53 NPR This social monitoring report is a document of the borrower. The views expressed herein do not

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

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

Government of Nepal Asian Development Bank

Ministry of Urban Development

Department of Urban Development and Building Construction

IUDP, Project Coordination Office

INTEGRATED URBAN DEVELOPMENT PROJECT (IUDP)

Loan/Grant Number(s): L2851-NEP; G0284-NEP

SEMI- ANNUAL SOCIAL SAFEGUARD

MONITORING REPORT (SMR)

(July to December, 2016)

January 2017

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TABLE OF CONTENTS

1. Project Background ................................................................................................................. 1

2. Status of Updated Resettlement Plan ...................................................................................... 1

3. Land Acquisition and Compensation Disbursement Status ...................................................... 4

4. Process for Acquiring Land for Landfill Site.............................................................................. 6

5. Safeguard Requirements as per Resettlement Plan ................................................................ 6

6. Grievance Redress Mechanism (GRM) ................................................................................... 7

7. Establishment of Safeguard Desk………………………………………………………….………….8 8. Status of Compliance with Loan and Grant Covenants ............................................................ 8

Annex: Annex-1: Guthi Sansthan Letter to Janakpur SMC Annex-2: Photographs

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List of Acronyms and Abbreviations

ADB Asian Development Bank APs Affected Peoples

CDC Compensation Determination Committee

CDO Chief District Officer

DAO District Administration Office

DDR Due-Diligence Report

EMP Environmental Management Plan

GRC Grievance Redress Committee

GRM Grievance Redress Mechanism

HH House Holds

IEE Initial Environmental Examination IUDP Integrated Urban Development Project

LACFC Land Acquisition and Compensation Fixation Committee

MoFALD Ministry of Federal Affairs and Local Development

MoUD Ministry of Urban Development

PCO Project Coordination Office

PIU Project Implementation Unit

PMSC Project Management Support Consultant

PPTA Project Preparation Technical Assistance

RoW Right Of Way

RP Resettlement Plan

SLFS Sanitary Land Fill Site

SMC Sub-Metropolitan City

SMR Safeguards Monitoring Report VDC Village Development Committee

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1. Project Background

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

increased economic growth in four municipalities/Sub-Metropolitan City (SMC) in Nepal namely

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

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

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

urban road and lanes and together will constitute integrated urban development package for each

municipality.

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

and Nepalganj was prepared and endorsed by Government, concerned municipality and ADB in

September 2011. Further, the approved resettlement plans were prepared based on preliminary

project design, therefore it was to be updated after final detail engineering design if the additional

impact identified as compare to PPTA report. The resettlement impacts on road and drainage

of all three municipalities/SMC namely Janakpur, Siddharthanager and Nepalgunj were not

found during detailed engineering design as RoWs were cleared by the municipalities/SMC as

per building bylaws of 1999. However, some resettlement impacts were observed during

construction period in drainage section in Nepalgunj Sub-Metropolitan City. Hence, resettlement

plans need to be updated incorporating identified impacts during the construction period.

Besides, alternative options had been explored to shift the vendors and hawkers in all three

municipalities/SMC for construction period so as to retain their income.

In SWM component in Siddharthanagar Municipality, land acquisition is also needed for

access road for landfill site. The land acquisition and compensation payment are

completed. Janakpur, Siddharthanagar and Nepalgunj Municipalities/SMC prepared updated

RP which was reviewed by PCO/PMSC and submitted to ADB for concurrence. The updated

RP included land acquisition status of sanitary land fill sites of both Siddharthanagar

Municipality and Nepalgunj SMC. Whereas, for Dharan SMC, the PPTA didn’t envisage the

need of resettlement plan, however during detailed design some portion of private land were

needed to be acquired for reservoir construction and required land was acquired. Thus,

Resettlement Plan was prepared and submitted to ADB.

2. Status of Updated Resettlement Plan

PPTA provisioned that, if additional losses found during detailed design, existing plan will be

updated and submitted to ADB for concurrence prior to commencement of civil works. Three

updated RPs were received from Janakpur, Siddharthanagar and Nepalgunj Municipalities/SMC

and reviewed by the PCO/PMSC and submitted to ADB. A resettlement plan was also prepared

for Dharan SMC as some private lands were needed to be acquired to construct reservoir.

The status of Updated Resettlement Plan is as follows:

Dharan SMC During PPTA, resettlement impact was not envisaged for implementation of Water Supply Sub-

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Project in Dharan SMC however, detailed design showed that some private land were needed for

construction of reservoir. Hence, a Resettlement Plan was prepared. Three households lost 729

sqm land comprising 5 numbers of plots. The Resettlement Plan was reviewed by the

PCO/PMSC and submitted to ADB. The land value has been fixed by the LACFC as replacement

value. Please refer Table 2.

Janakpur SMC The updated Resettlement Plan for storm water drainage and road subproject was prepared in

Janakpur SMC. The detailed design indicated that no additional impact was identified. Most of

the structures that have been demolished are within the existing RoW, thus no likely

resettlement impact was envisaged. Alternative places will be explored by the Janakpur SMC for

Vendors/hawkers if any temporary impact will occur during construction period. The Janakpur

SMC ensured that all the demolition in proposed road and drainage section is within the RoW

and it was cleared by the Janakpur SMC. Thus, the updated resettlement plan is not required.

As no resettlement impact is seen, the due-diligence report will be prepared for Janakpur SMC.

Transitional plan has also been prepared to manage SMC waste until alternative landfill site is

identified and formally acquired. The landfill site that was previously fixed at Fulgama VDC had

some disputes resulting cancellation of that site. The alternative location of landfill site has been

identified at Mahuwa VDC ward no. 9 (belonging to Bhoyal Math). The land is under Guthi

Sansthan ownership and the Guthi Sansthan informed JSMC that it is positive to provide the

land for landfill site on lease basis (Refer Annex -1).Total area of land is about 8.53 hectare

comprising 32 plots. The JSMC is working on acquisition of required land.

Siddharthanagar Municipality Resettlement impacts were not found on storm water drainage and road subproject as the

structures demolished along the road and drainage fall under existing RoW which was finalized by

the municipality on 1999 on the basis of Building Bylaws, thus no scope of resettlement impact

found in aforesaid subprojects. Further, the house owners are voluntarily demolishing their

houses as requested by the Municipality as reported by Project Manager. Some trees have to

be cut down in Sanitary Landfill Site during construction of landfill site structure. The owner will

remove the trees and use himself thus no compensation needed for the trees. The DSC is

planning to mobilize land surveyor to plot the land for structure very shortly. Vendors/hawkers

shifted their business in different places during drainage and road construction and will resume

their business in original places after the completion of construction works. Hence,

compensation is not needed for them as no impact recorded on their livelihood due to project

interventions. Further, as reported by the DSC, the SMC is planning to build permanent

structures for vendors/hawkers in specific location proposed by the Municipality. The proposed

location are; Khajana path, Maitri path and Bimanghat path.

Standing cash crops were damaged by the access road construction for transportation of

construction materials. The losses inventory was recorded and DSC recommended to GRC for

loss incurred by the access road. These losses have been identified in Lumbini road to

Maudihawa Chowk through Galamandi and Durga khola road. The payment of these losses will

be made under the contractor's Bill of Quantity (BoQ). Process for compensating the losses has

already been initiated. In Anchalpur chowk to Sano Dumdumwa khola diversion drain, the original

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design was stone pitching and trapezoidal structure resulting requirement of additional land

beyond the Right of Way (ROW). The surrounding people would claim the compensation to be

made for the loss of land along with crossing structure. With a view to avoid the losses, the DSC

redesigned the proposed structure in rectangular shape which prevented in acquiring the

additional land. Alternative access road for sanitary landfill site is explored and land acquisition is

completed. Total 0.4 ha of private land from 15 households was acquired and cost of land was

determined as a replacement value which amounted as NRs. 3256562.50. However, two affected

households are still found reluctant to receive the compensation amount claiming that the amount

fixed is less than the market price. The PMSC expert visited the site and consulted affected

persons and other community people that the amount determined by CDC was based on

replacement value. It is natural phenomenon that the price escalation has been seen over the two

years period. The original rate fixation was done two years ago. The claim is not found logical and

recommended to DSC to deposit the amount in District Administration Office.

Nepalgunj SMC Significant Resettlement impacts have not been seen on storm water drainage and road subproject

as the structures demolished along the road and drainage do not fall under existing RoW which was

finalized by the Nepalgunj SMC on 1999 on the basis of Building Bylaws. However, during physical

construction, some impacts on private land, structures and access to private houses were found due

to construction of drainage. The complains were also submitted in Nepalgunj SMC for the impacts

incurred by the project interventions. Some private lands were affected during construction of

Kontipur outfall system due to trapezoid design and earthen nature of the drainage resulting access

to the agriculture field. For this, the Nepalgunj SMC installed Hume pipes sufficiently for crossing to

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

Regarding the complaint of land owner to reinstate boundary wall and latrine damaged during

construction of Dondra Khola storm water drainage at ward no. 15, Koreanpur, Nepalgunj SMC; the

Nepalgunj SMC made agreement with the concerned land owner to reinstate the damaged

boundary wall and construct improved toilet with septic tank. The reinstatement and construction of

these loses have been completed. However, the owner was not satisfied and claiming some cash

from the Municipality. The Nepalgunj Municipality agreed to provide cash compensation. The two

houses in Paraspur created obstacle during the construction of drain work by not demolishing the

front part of their houses. However, it is reported by the DSC that the house owner themselves built

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

losses.

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Table 1: Proposed Sub-Project Components

Subproject Municipality/SMC Land Acquisition Nepalgunj Siddharthanagar Janakpur

Storm water drainage

Improvement and Development of storm water drainage

Improvement and Development of storm water drainage

Improvement and Development of storm water drainage

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

Solid waste management

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

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

The alternative site is identified at Mahuwa VDC ward no. 9 and land acquisition process is underway; Transitional plan has been prepared for temporary management of waste

Nepalgunj SMC and Siddharthanagar Municipality have already acquired land from private owners and Janakpur SMC is in the process to acquire land

Roads and lanes

Reinstatement of Urban Roads

Reinstatement of Urban Roads

Reinstatement of Urban Roads

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

Source: Resettlement Plan 2011, 14 T A 7727 NEP; Field visit 2015

3. Land Acquisition and Compensation Disbursement Status

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

for landfill site to the owner and ownership transfer of acquired land was completed. Nepalgunj

SMC has acquired 8.47 ha land from four land owners which is about 1 ha more than the original

plan. This is because of 1 ha land is not useful for land owner as it lies in middle part of the

acquired land. Discrepancies were seen between the amount of private land to be acquired as

per approved draft RP and land acquisition for landfill site in First Semi-Annual Safeguard

Monitoring Report. The field visit was made to Nepalgunj SMC and found that the payment has

been made as a replacement cost by following negotiation process as per land acquisition act

1977 where land owner were asked to come for negotiation in District

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Administration Office (DAO) under Land Acquisition and Compensation Fixation Committee

(LACFC) and finalized the unit rate for affected land consensually. Land owners are satisfied with

the payment they received from the PIU. Further, some portions of private land need to be

acquired in drainage construction works in Nepalgunj SMC which is in the process of

acquisition. The land owners have shown their willingness to donate the land.

Similarly, total of 4.06 ha of land has been procured from one land owner in Siddharthanagar out

of 5.41 ha which seemed a bit lower as compare to PPTA report. 1.35 ha land is not required due

to technical reasons. The payment for landfill site land is based on unit rate mentioned in

PPTA report in which cost variation has not been identified in line with the PPTA report. The

payment has been made as a replacement cost following due process collecting market and

government unit rates before submitting to Compensation Determination Committee (CDC) for

fixation of compensation amount. No structure has been observed in both landfill sites in

Siddharthanagar and Nepalgunj except few private trees in Siddharthanagar landfill site. It has

been agreed with tree owner in Siddharthanagar that, construction location of landfill site’s tree

would be removed by owner himself and compensation would not be paid for the same. However,

PIU would be responsible to pay compensation for remaining trees outside the construction

location as per market and district forest office rates. Some 25 numbers of trees have already

been removed by tree owner. Moreover, total of 0.4 ha of private land of 15 households was

acquired for sanitary landfill site's access road in Siddharthanagar municipality and cost of land

was determined as a replacement value which amounted as NRs. 3,256,562.50. However, two

affected households are found reluctant to receive the compensation amount claiming that the

amount fixed is less than the market price. The PMSC expert visited the site and consulted affected

persons and other community people that the amount determined by CDC was based on

replacement value. It is natural phenomenon that the price escalation has been seen over the two

years period. The original rate fixation was done two years ago. The claim is not found logical and

recommended to DSC to deposit the amount in District Administration Office. Similarly, deed

transfer of 17 affected plots is also completed.

In Janakpur SMC, the landfill site that was previously finalized at Fulgama VDC had some

disputes resulting cancellation of that site. The location of alternative landfill site has been

identified at Mahuwa VDC ward no. 9. The land is under Guthi Sansthan ownership and the Guthi

Sansthan is positive to provide the land for landfill site on the lease basis. Total area of land is

about 8.53 hectare comprising 32 plots. The JSMC is working for acquisition of required land.

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

impacts were found in detailed design and prepared resettlement plan. All together 729 sqm private

land has been acquired from three households comprising 5 plots. The compensation amount has

been fixed by the LACFC following due process as a replacement value. The detail of land

acquisition and compensation payment status is given in table 2.

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Activity Nepalgunj Siddharthanagar Janakpur Dharan The Local officer(CDO) Issues notice including purpose of

New Madesh National daily

Gorkhapatra daily Land Acquisition process is being initiated

Gorkhapatra daily

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

19 March, 2012 30 Jan 2015

GoN assign Government officer to begin preliminary action

Executive officer

Executive officer Executive officer

Necessary preliminary survey including boundary demarcation of landfill site

Yes Yes Yes

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

Yes Yes Yes

Formation of

6 August, 2012 26 March, 2013 31 March 2015

CDC meeting was held for

7 August, 2012 26 March, 2013 31 March 2015

Table 2: Land Acquisition and Compensation Disbursement Status

Municipality/ SMC

Land to be acquired based on

RP

Actual land has been acquired

compensation paid (NRs)

Remarks

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

Siddharthanagar 5.81 ha 4.46 ha 11,931,391.00 100% compensation paid for one affected land owner for landfill site in June 2012; whereas 85% compensation paid for landfill site access road. 1.35 hector land is not required due to technical cause in landfill site

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

4. Process for Acquiring Land for Landfill Site Table 3 indicates process followed while acquiring the land for development of landfill site based on

PIU reporting.

Table 3: Process for Acquiring Land for Landfill Site

5. Safeguard Requirements as per Resettlement Plan Table 4 indicates safeguard requirements fulfilled as per approved Resettlement

Plan/ Resettlement Framework.

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Table 4: Safeguard Requirements as per Resettlement Plan

A Status Notes Formation of GRC Achieved GRC in Nepalgunj,

Siddharthanagar, Dharan and Janakpur municipalities/SMC formed

Disbursement of compensation for development of sanitary landfill site, private land for reservoir construction and landfill site access road

Achieved Compensation paid in Nepalgunj SMC and Siddharthanagar municipality for landfill sites; compensation paid for private land for construction of reservoir in Dharan SMC; 100% compensation paid for landfill site access road in Siddharthanagar

Ownership transfer 100% Nepalgunj, Siddharthanagar and Dharan municipalities/SMC completed 100% ownership transfer whereas

Loss inventory and census survey for additional losses after detailed design

Completed All four municipalities/SMC completed loss inventory and census survey

Preparation of Updated Resettlement Plan

Completed Nepalgunj, Siddharthanagar and Janakpur municipalities/SMC prepared updated RP and submitted to ADB after reviewing by PCO/PMSC while Dharan SMC prepared resettlement plan and submitted to ADB. Further, the resettlementplan needs to be updated for all the three municipalities

For vulnerable groups, additional subsistence allowance equivalent to NRs 30,000/HH for enhancing livelihood

Not started yet

The APs dependent on agriculture livelihood are eligible for medium- term income restoration activities which include skill development training based on need at the rate of NRs 10,000/person/HH

Not started yet

List of participants is being finalized.

Identification of vendors/hawkers which could be affected during construction

Being initiated

Will be identified during civil works Implementation and adopt impact mitigation measure by exploring alternative places during construction period.

6. Grievance Redress Mechanism (GRM) Grievance Redress Mechanism has been established in all project municipalities/SMC. It has been

observed that the GRM is less functional as regular meetings have not been conducted so far. It is

suggested by the ADB that the informal grievances should also be recorded and make amicable

solution for the same. The PCO/PMSC is planning to circulate letter to all municipalities/SMC

towards conducting GRM meeting at least once a week and make it more effective.

7. Establishment of Safeguard Desk The Safeguard Desk has been established in Dharan, Janakpur, Siddharthanagar and Nepalgunj

Municipalities/SMC. The Safeguard Desk in each municipalities/SMC will organize monthly

meeting to i) assess the safeguards compliance performance as guided by EMP and RP; ii)

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

and iv) prepare periodic safeguard monitoring reports.

8. Status of Compliance with Loan and Grant Covenants

S.N Covenants Status of

Compliance Remarks

Sector

Implementation Arrangements

1 Resettlement

The Beneficiary shall ensure or cause MOUD and MOFALD to

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

Project, each Subproject and all Project facilities are made

available to the Works contractor in accordance with the

schedule agreed under the related Works contract and all land

acquisition and resettlement activities are implemented in

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

Beneficiary relating to land acquisition and involuntary

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

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

measures and requirements set forth in the RP, and any

corrective or preventative actions set forth in the Safeguards

Monitoring Report (Schedule 5, Para 4)

Complied with/

Being complied with.

Without limiting the application of the involuntary

Resettlement Safeguards, the RF or the RP, the Beneficiary

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

economic displacement takes place in connection with the

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

(a) compensation and other entitlements have been provided

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

which shall be borne by the Beneficiary and the relevant

Municipality; and

Complied with.

2 Safeguards Related Provisions in Bidding Documents and

Works Contracts

The Beneficiary shall ensure or cause MOUD to ensure that all

bidding documents and contracts for Works contain provisions

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

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

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

plan (to the extent they concern impacts on affected people

during construction), and any corrective or preventative

Being Complied

With. Provision has

been made in

bidding documents

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S.N Covenants Status of

Compliance Remarks

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

works.

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

social measures; Being Complied

With. Budget

provision has been

made in bidding

documents and

contracts for works.

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

unanticipated environmental, resettlement or indigenous

peoples risks or impacts that arise during construction,

implementation or operation of the Project that were not

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

peoples' plan;

Being Complied With

/ Will be followed.

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

and other infrastructure prior to starting to transport

materials and construction; and

Being Complied

With/ Will be

followed.

e) fully reinstate pathways, other local infrastructure, and

agricultural land to at least their pre-project condition upon

the completion of construction.

Being Complied

With/ Will be

followed.

3 Safeguards Monitoring and Reporting

The Beneficiary shall do the following or cause MOUD to do

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

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

and disclose relevant information from such reports to

affected persons promptly upon submission;

Complied with/

Being complied with.

Seven semi-annual

SMR prepared

and

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

impacts arise during construction, implementation or

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

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

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

detailed description of the event and proposed corrective

action plan; and

Complied with.

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

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

or any indigenous peoples' plan promptly after becoming

aware of the breach.

Will be followed.

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ANNEX

ANNEX-1

Guthi Sansthan Letter to Janakpur SMC

ANNEX-2

Photographs

Toilet & Boundary wall construction at Koreanpur,

Nepalgunj SMC

House reinstate at Paraspur, Nepalgunj SMC