ENVIRONMENTAL MANAGEMENT PLAN CHAD EXPORT PROJECT...

CHAD RESETTLEMENT AND COMPENSATION PLANENVIRONMENTAL MANAGEMENT PLAN

CHAD EXPORT PROJECT CHAD PORTION - VOLUME 3

Chad CRP Eng 05-05.doc 1-1 May 1999

1.0 INTRODUCTION

1.1 INTRODUCTION

The Chad Export Project Compensation and Resettlement Plan was developed to meet WorldBank Directives on compensation and involuntary resettlement. The Plan’s basic goals andprinciples (Table 1-1) are shared by Esso Exploration and Production Chad Inc. (EEPCI), TchadOil Transportation Company (TOTCO), its co-venturers, the World Bank, and the Government ofChad, and are intended to minimize disruption to local peoples. This philosophy considersresettlement as the last resort to Project-driven changes in land use. The Plan calls for fair,adequate, and monitored compensation for adversely affected individuals, households, andcommunities. The disruption of local peoples is to be minimized, and the social fabric of Projectarea communities respected.

An earlier version of the Plan entitled Chad Compensation and Resettlement Plan, Chad ExportProject, dated February 1998 was distributed both nationally and internationally for comments.In addition, extensive consultation has occurred in rural communities concerning the Plan during1998. Comments received were assessed and adjustment made to the Plan as needed.

Between February 1998 and February 1999, the following have been accomplished on theChad Compensation and Resettlement Plan:

• The Transportation System Centerline Survey (CLS) was completed in December 1998.

• All individual files for the Oil Field Development Area (OFDA) and the pipeline easementwere completed in January 1999, including 126 files in the OFDA, 456 files in the pipelineeasement, and 26 infrastructure files.

• All cash compensation to individuals affected by the Project has been paid in the OFDA andalong the pipeline easement.

• All in-kind compensation requests have been filled out by the affected individuals, andEEPCI and/or TOTCO are ordering the compensation goods for delivery over the next fewmonths.

• All resettlement and relocation cases in the OFDA have been identified, and families havegiven their consent. There are no such cases along the pipeline easement.

• A road survey was carried out in January-February 1999.

An estimated total of 2124 hectares (ha) of land will be needed, most only temporarily, duringconstruction. Of this total, 203 ha (10 percent) was acquired during exploratory and delineationdrilling through 1994. The remaining 90 percent of the land needs will be acquired in twophases:

CHAD RESETTLEMENT AND COMPENSATION PLANENVIRONMENTAL MANAGEMENT PLANCHAD PORTION - VOLUME 3 CHAD EXPORT PROJECT

May 1999 1-2 Chad CRP Eng 05-05.doc

Phase I: A compensation process has been underway since September 1998 to acquire 890 ha(42 percent) for the permanent production facilities and related infrastructure (337 ha) and thepipeline easement (553 ha).

Phase II: The remaining 48 percent will be acquired over a period of three years, for drillingwells and for the construction of flow lines, manifolds, trunk lines, power lines and secondaryroads leading to the well sites.

At the end of construction and development drilling, only about 457 ha (22 percent of the total2124 ha) will be permanently closed to public use during EEPCI and/or TOTCO’s operationsphase. To accomplish this, when economically and technically feasible, land neededtemporarily during construction will be made available to communities either as publicimprovements or reclaimed land.

The following sections present procedures for determining eligibility for compensation,resettlement, and resettlement alternatives. Implementation procedures and the basis on whichcompensation is calculated are explained. The Plan was based on Project design andscheduling as of the first quarter of 1998. Section 8.0 sets forth procedures for managingchanges that may occur as the Project or local conditions evolve.

1.2 ELEMENTS OF THE PLAN

Key elements include:

• Minimizing Project land use, reclaiming land after construction, and making as much landavailable as possible to customary users.

• Designing the Project to avoid village relocation.

• Meeting the intent of World Bank guidelines on resettlement and all local laws.

• Recognizing Chad’s unique cultural and legal issues.

• Minimizing potential resettlement estimated to affect approximately 80 households.However, the Plan allows for a maximum of 150 households to be resettled.

• Modeling resettlement on the existing cultural institution of resettlement, common amongethnic groups in the area.

• Determining compensation values based on extensive data collection and socioeconomicanalysis in the area.

• Providing for EEPCI and/or TOTCO payment for compensation and resettlement at currentmarket values.

• Incorporating preferences voiced during extensive consultation with local peoples, Non-Governmental Agencies (NGOs), and other stakeholders.




• Providing compensation for both private landowners and customary users.

1.3 PROPOSED PROJECT

The Chad Export Project will produce, transport, and sell oil to world markets in a manner thatbalances Chad’s environmental, economic, and social needs. Three oil fields in LogoneOriental Prefecture will be developed and a pipeline Transportation System built acrossCameroon to a floating offshore storage facility in southwestern Cameroon (Figure 1-1).

In Chad, most activity will occur in the Oil Field Development Area (OFDA) in the Cantons ofBero, Kome, and Miandoum (Figure 1-2), where plans call for constructing production facilitiesand for drilling about 300 wells. Facilities have been sited to avoid settlements and include anoperations center, storage areas, roads, an airfield, and housing. Placement of facilities isknown except for well drill pads and associated lines. Wells will be sited over a period ofseveral years as data are collected and analyzed from initial test and production wells.

1.4 SUPPORTING STUDIES AND ENVIRONMENTAL DOCUMENTS

The 1997 version of the Environmental Assessment1 (EA) of the Chad Export Project wasprepared to meet World Bank guidelines. The EA identified physical, biological, and humansocioeconomic environmental issues in order to avoid adverse impacts or to minimize throughredesign early in the Project planning process and adoption of mitigation measures for theenvironment.

The 1997 version of the Environmental Management Plan2 (EMP) to meet World Bankguidelines was also prepared. The EMP provides summaries of specific biophysical,socioeconomic, and health-related Project expectations and issues, along with associatedProject mitigation and monitoring actions. Other elements of the EMP include discussion ofroles and responsibilities of key participants (e.g., EEPCI and/or TOTCO and the Government ofChad), oversight organizations, and environmental management tools.

Socioeconomic studies related to potential Project impacts and resettlement were completed insupport of the EA and preparation of this Plan. Field studies are continuously being conductedby Dr. Ellen Brown who has 30 years of research experience in Chad. In her first study for theProject in 1995-96, Dr. Brown and her team of Chadian sociological assistants completed over

1 Dames & Moore, October 1997, Environmental Assessment, Chad Export Project: Chad Portion, Esso Exploration

and Production Chad, Inc.

2 Chad Export Project, Environmental Management Plan, Exxon Production Research Company, 1997.



13 work months of on-the-ground research and extensive public consultation. Appendix B,“Human Environment,” of Environmental Assessment contains the full 140-page text of Dr.Brown’s research report.

Consultation was carried out in 61 communities (villages and towns), where residents proposedideas and debated propositions about resettlement and compensation (Section 2.0). Many planrecommendations were advanced by the people potentially impacted, the local populations inthe OFDA cantons. Compensation valuations evolved out of the population’s previousexperiences with compensation and their judgment of what is fair, both for individuals and forthe community.

Dr. Brown also studied current and on-going increases in pressure on land in the local slash andburn/mulch farming system. This increased pressure has resulted in decreasing soil fertility. Tominimize the potential impact of project land needs, early Project redesign resulted in asignificant reduction in Project land needs.

Community consultation and a Public Consultation Program have provided, and will continue toprovide, information on the scope and nature of Project activities, and issues of concern, suchas the availability of jobs, and updates on the Project’s progress. Village meetings andconsultations were held on several occasions in almost 100 villages. Villages in the Projectvicinity were informed of possible land needs and resettlement options during Phase I (1998-1999), the pre-construction period. Likewise, village meetings and consultations will be heldduring Phase II of the Project, the pre-drilling stage.

Additional socioeconomic information was collected during the 1998 Centerline survey.Ongoing consultation and “effect monitoring” throughout Project construction will indicate thedegree to which EEPCI and/or TOTCO socioeconomic goals are achieved (Section 8.0).

1.5 SOCIAL AND CULTURAL CONTEXT

Social-cultural values molded the compensation principles.

VALUE RESPONSE

A village has a powerful attachment to

its location.

Facilities were sited to avoid villages; minimize land needs;

and make reclaimed land available to communities.

People attach both emotional and

economic value to the labor theyinvest in their fields and homes.

Individuals will be compensated for their labor investment, as

well as for materials.

Community-wide agreement is the

basis for all action.

Community-wide support was solicited for the Plan and will be

sought throughout the compensation and resettlement

process.




VALUE RESPONSE

Equality is highly valued. There is a

strong cultural bias against creating

“haves” and “have-nots.”

Community compensation avoids creating “haves” and “have-

nots,” and allows strong and positive social ties and

integration into a host community.

A cultural value of people living in thearea is that any act of giving or taking

involves not equal treatment, but

preference and discrimination.

Taking land from one person orvillage, compensating some

individuals or groups and not others is

likely to be viewed as discrimination

or preference.

The compensation process for directly affected peoples will beopen and transparent.• Compensation rates will be simple and straightforward, to

make it easy for the local population to recognize that

compensation has been fairly paid.• Public consultation in affected areas will clearly explain

what will and will not be compensated for and when

someone is eligible for compensation.• The goal is to have one person see that the same standard

applies to him as to others.

Even though the Plan contains compensation and resettlement processes and valuationsproposed and agreed to by most of the population, it is inevitable that some individuals in thisculture will perceive partiality and favoritism. Social-cultural values were followed throughoutthe compensation process. The overall compensation process was simple and straightforwardand all affected individuals were treated with the same high-level standards set by EEPCIand/or TOTCO. Public consultation and transparency is important, but will not completely avoiddissent and dissatisfaction. EEPCI and/or TOTCO continues to be proactive with their publicconsultation program.

1.6 COMPENSATION FOR CUSTOMARY RIGHTS

Land acquisition and compensation will meet Chadian law (Section 4.0) and World Bankcompensation principles and will recognize customary rights. This procedure is illustrated inFigure 1-3.

Since most land needed by EEPCI and/or TOTCO is held by customary rights, this Planaddresses a number of issues related to these rights, including the following.

ISSUE RESPONSE

Establishing a generous net land yield Establishing a value for the net yield of the land so farmers

can purchase replacement staples even when market prices

may be at their peak.

Including value of labor in valuation of

farmland

Setting the value of farmland at the monetary equivalent of

labor invested in preparing and cultivating a field, allowing theuser to reestablish an equivalent field elsewhere.

Moving cultural sites and burial places Moving sites, when possible and providing compensation as

per mutual agreement between EEPCI and/or TOTCO and the

local population concerned (Figure 1-4).



ISSUE RESPONSE

Recognizing that customary rights

may exist on titled lands

Many people depend on land to which they do not have legal

title for their livelihood. In rural areas customary users

sometimes continue to use land, unaware that it has beenacquired legally by someone else. In such cases, both the

legal titleholder and the customary rights user will be

compensated.

Importance of bush Recognizing that bush is in fact extremely valuable to the

community, compensation will be paid as part of communitycompensation.

Compensation valuations are discussed in Section 5.0 and include a combination of cash, in-kind compensation, and technical assistance. Both individual and community compensation willbe provided.

• Individuals will receive compensation for customarily held investments and assets thatcovers the replacement cost of such investments which have been surrendered orabandoned because of direct Project activity or resettlement (Sections 5.0 and 6.0).

• In-kind community compensation will be paid to villages that undergo significant impacts asa result of Project resettlement (Section 7.0).

• Information pertaining to individual compensation is discussed in Section 2.4.1 andAppendix E.

1.7 RESETTLEMENT, RESETTLEMENT ALTERNATIVES AND RELOCATION

World Bank Guidelines require that the potential for involuntary resettlement be considered asper World Bank Operational Directive 4.30. This resettlement policy addresses bothresettlement of families to new locations, as well as relocation of family structures and fieldswithin the same community. This plan provides for resettlement modeled on traditional existingsocial institutions.

1.7.1 Early Project Planning for Resettlement and Resettlement Alternatives

Early Project planning minimized the potential for resettlement. The number of individuals orhouseholds who are at risk of no longer being economically viable because of Project landneeds was evaluated on the basis of Project land needs, the average surface area used by afarmer, and the fact that almost half of households have two independent farmers with their ownfields. It is estimated that, at maximum, 150 households will be eligible for resettlement. Up to31 January 1999, with 42 percent of the land needs filled, 18 households in the OFDA wereeligible for resettlement (Table E-1). Six out of the 18-chose off-farm income training as analternative option (Table E-2).




The Plan proposed that families who resettle would be given technical support, advice, andassistance during their move and transition period in addition to compensation for anyinvestments surrendered or abandoned. Resettlement plans include mitigation measures suchas improved agriculture. A latrine will be included as part of any new house construction.Therefore, the environmental impact of resettlement activities is expected to be no greater orless than the traditional resettlement on which it is modeled. All these measures are beingfollowed closely in the resettlement process.

In addition, EEPCI and/or TOTCO offers two alternatives to resettlement following a facilitateddecision-making process. This decision process will help households decide which decision,resettlement or an alternative fits their particular circumstances. If individuals opt not to resettle,they may choose one of the following options:

• Improved Agricultural Techniques: Individuals may choose to learn improved agriculturaltechniques facilitated by EEPCI and/or TOTCO and to receive one year of agriculturalcredits (Section 6.6).

• Off-Farm Income: Individuals who have some off-farm skills or realistic businessopportunities may choose to receive a year’s tuition for approved local skills-trainingprograms, and low-interest loans for tools or materials needed (Section 6.7).

• Subsistence farming is likely to remain the major livelihood of most people in the area. Butthe EA, supported by other studies, has shown that the current agricultural system -- withoutthe Project -- is not sustainable in the longer term. Because EEPCI and/or TOTCO landneeds will increase village land pressure, the Project will facilitate improved agriculturaltechniques that attempt to slow the decline in local soil fertility, promote the growth of highyield/high value crops, and lower the rate at which bush land is cleared and cultivated.

1.7.2 Early Project Planning for Relocation

Farmers often build adjunct structures in their fields, especially fields that are distant from theirmain homestead. They build these structures for storage of their seeds and harvested cropsand for convenience. If land needed by the Project contains such structures, compensation willprovide for the replacement of these structures in different, but nearby locations. In otherwords, the structures will be relocated within the community the household currently resides.

People also construct temporary shelters or housing in their distant fields. They live in thesedistant fields during part or all of the rainy season and return to their villages once work in thosefields has been accomplished. If Project land requirements affect these structures during therainy season, the housing will be relocated. The family is assisted in moving their effects, as isthe case with resettlement. As the family retains a viable amount of agricultural land, onlyrelocation in a convenient place is necessary.



1.7.3 Status of Resettlement and Relocation Cases (15 September 1998 –20 March 1999)

All individuals and households who will be relocated (within the current village they reside in) orresettled (in the villages other than those they to reside in) during Phase I have been identifiedand have given their consent (Table E-1). All homesteads and fields that will be abandonedbecause of resettlement have been identified, measured and catalogued. Procurement ofconstruction materials for reconstruction of homesteads began in December 1998. Resettlershave identified and gained access to replacement fields. Everyone who is being resettled hasdecided on and gained access to a destination village.

There are 18 cases in the OFDA who qualify for resettlement. Five individuals have decided toresettle (Table E-3). They have picked their resettlement locations and have establishedresettlement timelines. Six others have already made replacement fields and/or moved on theirown. Seven have acquired additional land from relatives and will continue to farm in theirpresent area, without resettling. Six individuals have opted for the off-farm income option andhave chosen a profession in keeping with their abilities and their present situation and,therefore, will not be resettled. There are no resettlement cases along the pipeline easement.

There are 21 relocation cases in the OFDA. Relocation files have been opened for 17 cases.All information on current housing has been gathered for relocation. Individuals have madedecisions as to where they will relocate their homes. (Table E-4). Each affected individual haschosen a new house site and has indicated its location to EEPCI and/or TOTCO in order forconstruction of replacement housing to take place. All houses to be relocated are in the Cantonof Bero, in two administrative villages, Bero 2 and Dildo, and in two geographic villages,Dodangti (quarter of Bero 2) and Mbayande (quarter of Dildo). There are no relocation casesalong the pipeline easement.




Table 1-1 Compensation and Resettlement Goals

PHILOSOPHY

• The local population sees the compensation as fair and equitable based on:

− local African cultural values,

− people receiving what is perceived as fair.

• Compensation is as transparent as possible.

• The compensation process treats people and resources in exactly the same way wheneverpossible.

GOALS AND OBJECTIVES

COMPENSATION

• Affected people’s standard of living will not be less than their current conditions whencompensation is complete.

• Both holders of legal title to land and traditional land users are compensated.

• Project is conducted in a manner that assures the land is available for use when needed forproject construction and operations.

• Compensation is perceived as fair by the local population.

RESETTLEMENT

• Need for resettlement is limited through Project design.

• Desirable alternatives to resettlement are provided to affected people.

• Affected people have adequate time and resources to reestablish themselves.

• Resettlement follows traditional procedures of local culture.

• Compensation and resettlement do not create dissension within local population.

• Compensation and resettlement activities are fair.

CONTINUING SUPPORT

• People in both impacted and surrounding areas continue to be supportive of the ChadDevelopment Project.



Table 1-2 World Bank Directives Related to Resettlement

Operational Directive 4.30 entitled Involuntary Resettlement (June 1990)

The Directive describes:

Resettlement Objectives Contents of a Resettlement Plan

• Resettlement is avoided or minimized.• Resettled persons reestablish their former

standard of living.• Community participation and resettlement are

modeled on existing social institutions of

resettlers and hosts when possible.• Absence of legal title to land is not a bar to

compensation.• Local populations should be compensated with

adequate new land.

• Community participation• Socioeconomic survey• Environmental protection and management• Land tenure, acquisition, and transfer• Legal framework• Valuation of and compensation for lost assets• Shelter, infrastructure, and social services• Access to training, employment, and credit• Alternative sites and selection and integration

with host populations• Organizational responsibilities• Implementation schedule, monitoring, and

evaluation.

Resettlement Review by the Evaluations Department (1993), and

Regional Remedial Action Planning for Involuntary Resettlement (1995)

Indicate that effective resettlement involves:

• Compensation for lost assets in full consultation with affected families

• Assistance with resettlement and support during the transition period

• Assistance in re-establishing or improving the former standard of living

• Sufficient community participation to protect social fabric

Operations Manual Statement 2.33

Establishes two important goals:

• Resettled population should at least regain its prior socioeconomic status within areasonable transition period.

• No environmental degradation ensues from the resettlement process.




Operations Policy Note 10.08

Gives supplemental guidelines for the financial/economic aspects of resettlement:

• Resettlers should benefit from any economic development brought about by the Project thatled to resettlement.

• Options should be offered to enable people to enhance, not just replace theirproductive/income-earning opportunities.

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FIGURE 1-2

Chad Export Project

Figure 1-3: Land Acquisition Process

97-4925-001

Legal Ownership (Titre Fonçier) Customary Rights

• Land needed identified through government

Consult with:• Village chief• Land owner

• Negotiate amicable settlement• Determine economic viability if owner is user

• Compensate• If eligible, resettle or select resettlement alternative• Document

• Land needed identified through government

Consult with:• Canton chief• Village chief

Consult with:• Customary user if individual• Village if community user

• Compensate individual• If eligible, resettle or select resettlement alternative• Document

• Negotiate with individual using crop/field labor value process

• Compensate village• Document

• Negotiate with village• Consult with canton chief

Figure 1-4: Compensation for Sacred Sites

97-4925-005

Consult with:• Canton chiefs• Village chiefs/elders/religious officials• Individuals

Negotiate with:• Individuals for personal sites• Religious officials representative of spiritual community

Identify nature of sacred site

Negotiate compensation with:• Individuals for personal sites• Religious officials representative of spiritual community

Pay compensation or modifyProject land need to avoidsacred site

Movable Not movable

Negotiate compensation with:• Individuals for personal sites• Religious officials representative of spiritual community

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