44921-014: resettlement and ethnic minority development plan

155
Resettlement and Ethnic Minority Development Plan REG: Trans Borneo Power Grid: Sarawak to West Kalimantan Link (Malaysia) Prepared by Sarawak Energy for the Asian Development Bank. This resettlement and ethnic minority development 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. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Page 1: 44921-014: Resettlement and Ethnic Minority Development Plan

Resettlement and Ethnic Minority Development Plan

REG: Trans Borneo Power Grid: Sarawak to West

Kalimantan Link (Malaysia)

Prepared by Sarawak Energy for the Asian Development Bank. This resettlement and ethnic

minority development 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.

In preparing any country program or strategy, financing any project, or by making any

designation of or reference to a particular territory or geographic area in this document, the

Asian Development Bank does not intend to make any judgments as to the legal or other status

of any territory or area.

Page 2: 44921-014: Resettlement and Ethnic Minority Development Plan
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UPDATED RESETTLEMENT AND ETHNIC MINORITY DEVELOPMENT PLAN

AND

COMPLIANCE AUDIT REPORT

TRANS BORNEO POWER GRID: SARAWAK (MAMBONG) TO WEST

KALIMANTAN (275KV) TRANSMISSION LINK

August 2014

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CONTENT

1 EXECUTIVE SUMMARY ............................................................................................................................ 1

2 OBJECTIVE OF THE REPORT ..................................................................................................................... 5

3 PROJECT DESCRIPTION ............................................................................................................................ 6

3.1 PROJECT COMPONENTS .................................................................................................................................. 6

3.2 ALTERNATIVES CONSIDERED TO AVOID OR MINIMIZE LAND ACQUISITION ................................................................. 8

4 SCOPE AND PROGRESS OF LAND ACQUISITION ....................................................................................... 9

4.1 SCOPE OF LAND ACQUISITION .......................................................................................................................... 9

4.2 PROGRESS OF PROJECT AND LAND ACQUISITION ................................................................................................ 10

5 SOCIOECONOMIC INFORMATION AND PROFILE .................................................................................... 17

5.1 REGIONAL PROFILE....................................................................................................................................... 18

5.2 DEMOGRAPHIC FEATURES ............................................................................................................................. 18

5.3 INDIGENOUS PEOPLE: SPECIFIC ISSUES ............................................................................................................. 23

5.3.1 Vulnerability Assessment .............................................................................................................. 23

5.3.2 Specific Considerations .................................................................................................................. 25

6 INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION .................................................... 28

6.1 STAKEHOLDERS ............................................................................................................................................ 28

6.2 DIALOGUE SESSIONS AND DISCUSSIONS............................................................................................................ 29

6.3 INFORMATION DISCLOSURE MEASURES ............................................................................................................ 34

7 GRIEVANCE REDRESS MECHANISMS ..................................................................................................... 35

7.1 GRIEVANCE REDRESS .................................................................................................................................... 35

7.1.1 Power to enter on land for the purpose of construction ............................................................... 35

7.1.2 Multi-stakeholder consultative committee for all grievances ....................................................... 36

7.1.3 Case of Native Land ....................................................................................................................... 37

7.1.4 Case of Title Land .......................................................................................................................... 39

7.1.5 Grievances during Construction Stage .......................................................................................... 39

7.2 GRIEVANCES RECEIVED ................................................................................................................................. 39

8 LEGAL FRAMEWORK ............................................................................................................................. 41

8.1 NATIONAL OR LOCAL LEGAL FRAMEWORK ........................................................................................................ 41

8.1.1 Law of Sarawak (the Electricity Ordinance) .................................................................................. 41

8.1.2 Land Acquisition Procedures (Title Land) ...................................................................................... 42

8.1.3 Land Acquisition Procedures (Native Customary Land) ................................................................. 44

8.2 ADB POLICIES AND PROCEDURES OF GUIDELINES ............................................................................................... 47

8.3 GAPS BETWEEN SARAWAK LEGAL FRAMEWORK AND ADB’S POLICY ...................................................................... 48

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9 ENTITLEMENTS ...................................................................................................................................... 59

10 BUDGET FOR LAND ACQUISITION .......................................................................................................... 62

10.1.1 Compensation rate ................................................................................................................... 62

10.1.2 Budget Amount......................................................................................................................... 63

10.1.3 Source of Budget and flow of funds .......................................................................................... 64

11 INSTITUTIONAL ARRANGEMENTS ......................................................................................................... 65

12 IMPLEMENTATION SCHEDULE ............................................................................................................... 67

14 MONITORING AND REPORTING ............................................................................................................ 69

14.1 INTERNAL MONITORING ........................................................................................................................... 69

14.2 EXTERNAL MONITORING .......................................................................................................................... 70

15 CONCLUSION AND FOLLOW-UP CORRECTIVE ACTION ........................................................................... 72

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DEFINITION OF TERMS

Affected

Persons/Peoples

Any person or persons, household, firm, private or public institution

who are affected by the Project both positively and negatively.

Compensation Payment in cash or in kind (e.g. land-for-land) to replace losses of

land, housing, income and other assets caused by the Project. All

compensation is based on the principle of replacement cost, which is

the method of valuing assets to replace the loss at current market

value, plus any transaction costs such as administrative charges,

taxes, registration and titling costs. In the absence of functional

markets and limited choices for alternative assets, a compensation

structure is required that enables affected peoples to restore their

livelihoods to level at least equivalent to those maintained at the time

of dispossession, displacement, or restricted access.

Cut-off date The date prior to which the occupation or use of the Project area

makes residents/users of the same eligible to be categorized as

affected peoples, regardless of tenure status. In this Project, the cut-

off date is 3 September 2012 on which “Notice of intention to enter

and carry out work on land (pursuant to Section 16 of the Electricity

Ordinance (revised 2002) Cap. 50)” was announced in local

newspaper.

Entitlement A range of measures comprising compensation in cash or in kind,

income restoration support, transfer assistance, income substitution

and relocation support which are due to affected peoples, depending

on the nature of their losses, to restore their economic and social

base.

Land acquisition The process whereby affected peoples is compelled by a public

agency to alienate all or part of the land it owns or possesses to the

ownership and possession of that agency for public purposes in

return for compensation equivalent to the replacement costs of

affected assets.

Native Land The natives of Sarawak under customary tenure hold this class of land. The Native Customary Rights (NCR) to land may be created by a native as stated under Section 5 (2) of the Sarawak Land Code (Cap. 81). As of 1 January 1958, native customary rights may be created in accordance with the native customary law of the community or communities concerned if a permit is obtained. This gives the natives

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the right to occupy the Native Communal Reserves.

Native Communal Reserves is land reserved under native customary

rights created in accordance to native customary law of community

or communities (Land Code, Section 6). The land is still considered to

be State land and the native community for whom it is reserved or

any member thereof acquiring rights there in shall hold the same as a

licensee from the Government.

Relocation The physical relocation of an affected household from her/his pre-

project place of residence.

Replacement

Cost

The method of valuing assets to replace the loss at current market

value, or nearest equivalent, and is the amount of cash or kind

needed to replace an asset in its existing condition, without

deduction of transaction costs or for any material salvaged. The

calculation of full replacement cost will be based on the following

elements: (i) fair market value; (ii) transaction costs; (iii) interest

accrued, (iv) transitional and restoration costs; and (v) other

applicable payments, if any.

Severely

affected

persons

Those who experience significant/major impacts due to (i) losses of

10% or more of their total productive land, assets and/or income

sources due to the Project; and/or (ii) relocation due to insufficient

remaining residential land to rebuild.

Title Land

(Alienated Land)

Land held under documents of titles in Mixed Zone Land. Mixed Zone

Land may be alienated to and occupied by any race without

restriction. Within this class of land, natives may still occupy land

under customary tenure and such land cannot be alienated to others

until native customary rights have been extinguished by or

surrendered to the State. Registered titles in Mixed Zone Land may be

freely dealt with among members of all races.

Vulnerable

groups

Distinct groups of people who might suffer disproportionately or face

the risk of being marginalized by the effects of resettlement and

specifically include: (i) households headed by women, elderly, or

disabled, (ii) households falling under the generally accepted

indicator for poverty, (iii) landless households, and (iv) ethnic

minorities.

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List of Abbreviations

ADB Asian Development Bank

COI Corridor-of-Impact

DMS Detailed Measurement Survey

EIA Environmental Impact Assessment

ha Hectare

km

kV

KWB

kilometer

kilovolt

Kuching Water Board

LSD Land and Survey Department

NCL Native Customary Land

NCR Native Customary Rights

PAC project affected community

PAP Public Awareness Programme

PIB Public Information Booklet

PRO Public Relation Officer

PWD Public Works Department

REMDP Resettlement and Ethnic Minority Development Plan

RM Malaysian Ringgit

ROW Right of Way

SCORE Sarawak Corridor of Renewable Energy

SIA

VSDC

Social Impact Assessment

Village Security and Development Committee

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1 EXECUTIVE SUMMARY

This updated Resettlement and Ethnic Minority Development Plan (REMDP) and

Compliance Audit Report1 for “Trans Borneo Power Grid: Sarawak to West Kalimantan

Transmission Link Project” was prepared by Sarawak Energy, the executing and

implementation agency of the project.

Sarawak Energy, in partnership with the State Electricity Corporation (PLN: PT (Persero)

Perusahaan Listrik Negara), the Indonesian state-owned power utility, is building a 130

kilometers (km), 275 kilovolt (kV) power transmission interconnection—83 km in West

Kalimantan (Indonesia) and 47 km in Sarawak—which will be the first segment of the

planned 1,300 km high-voltage power transmission link, the Trans Borneo Power Grid,

which would interconnect the West Kalimantan power system to Sarawak, Brunei

Darussalam, and Sabah to enable power exchange between the Brunei Darussalam–

Indonesia–Malaysia–The Philippines East ASEAN Growth Area (BIMP-EAGA) countries.2 The

scope of this project is construction of a 47 km 275 kV transmission line and associated

substations on the Sarawak side that will enable power exchange between Sarawak and

West Kalimantan.

In July 2011, a draft REMDP was prepared by Sarawak Energy and was disclosed on ADB’s

website. Sarawak Energy has been implementing land acquisition since July 2012, and civil

works started in March 2013.

Sarawak Energy’s approach for compensation of economic loss is based on the

fundamental principles that universally cover land owners (regardless of tenure status)

whose right of use of land and right of access to land are involuntarily transferred to a third

party for developing infrastructure projects for larger public benefit. These principles are:

no material harm to the owner or the surrounding population, recognition of the rights of

individuals, awareness of the customary rights of minorities, and access to an effective

dispute resolution mechanism to address potential grievances.

Based on these principles and within the bounds of the current regulatory framework

established by the state, Sarawak Energy has prioritized compensation payments for

1 For projects involving facilities that are under construction, ADB’s Safeguards Policy Statement requires the conduct of a social compliance audit, including on-site assessment, to identify past or present concerns related to involuntary resettlement or land acquisition and Indigenous Peoples impacts.

2 BIMP-EAGA is a subregional initiative covering a subset of the countries in the Association of Southeast Asian Nations (ASEAN). BIMP-EAGA. http://www.bimp-eaga.org/

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immediate loss of crop as a priority. Compensation for temporary loss of land and other

impacts on non-land assets during construction is paid on an ongoing basis as the physical

work progresses. Typically the payment is made within two months and is contingent upon

the identification of, and communication, with the relevant land owners, who are not

always readily available for such communication.

The compensation for the permanent acquisition of land for the tower bases is only paid

upon the survey of the completed project.

In view of the socio-economic settings of the affected communities, the level of

vulnerability is very low, and the negative impact is relatively insignificant and the overall

impact to the community livelihood would be minimal as there is no physical relocation of

households or individuals. There are no vulnerable affected households (those below the

poverty line, the landless, the elderly, female headed households, women and children,

and those without legal title to land) or severely affected households who need special

assistance or particular attention.

In 2009, Sarawak’s per capita GDP was the highest (RM 30,318) in the federation of

Malaysia, and it was higher than the ones in Penang and Selagor. In 2012, Sarawak’s

unemployment rate was 3.2% compared against the nation average of 4.5% and the

average household income was about RM 1,100/month. In the affected communities

(villages within 1km radius of transmission line), average household expenditure was about

RM 843/month with about RM 408/month spent on food. Most of the population lived in

permanent detached houses (single storey or double-storey) and about 95% of the

population had formal education with more than 70% of households with one member

engaged in full time wage earning employment. The minimum wage for private sector

employees in Malaysia is about RM 900/month in the peninsula and about RM 800/month

for Sabah and Sarawak.

The objective of this initial social compliance audit, which forms part of this report, is to

determine whether actions to date were in accordance with ADB’s safeguard principles and

requirements, and identify appropriate measures (corrective actions) which could be taken

to address compliance, if there are specific areas of non-compliance are identified.

Sarawak Energy is implementing the project in compliance with the state legislative

requirement related to land acquisition ensuring that all affected landowners are protected

from adverse impact on their livelihood, particularly if one is required to surrender the

right to use one’s land and or its ownership. In addition, following the spirit of Sarawak

Energy’s corporate and social responsibilities, Sarawak Energy has made additional

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payments (higher rates) to reflect market prices for assets compared against the minimum

rates set by the legal requirement of the state.

Sarawak Energy will take measures to compensate all affected peoples, mainly for loss of

crops (estimated budget of RM 6.7 million), permanent land acquisition for the tower

bases (i.q. RM 0.3 million) and compensation for temporary loss of land and other impacts

on non-land assets during construction (i.q. RM 2.2 million). With the progress of the work,

Sarawak Energy has already paid for crop compensation RM 5.9 million which is more than

65% of the total budgeted amount for the compensation (Table 8) and about 88% of the

compensation budget for crops and trees.

Sarawak government (Minister of Resource Planning) publishes periodically the

compensation rate for crops affected by the government projects. The government decides

on the rate of compensation taking note of the prevailing economic situation, labor costs,

materials and the conditions of the specific crops and the market price for crops. The

decision also involves consultation amongst various agencies such as the Department of

Agriculture, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board,

and the Federal Agricultural Marketing Authority. Recently the Government schedule of

compensation rates was reviewed for the first time after many years, and has been

increased significantly. For example, for a matured rubber tree, the compensation has risen

up to 211% from RM 19 for a tree to RM 59 (2014), while the compensation for durian

trees had increased by 100% from RM 81 to RM 160 (2014). The compensation rate applied

for this project is higher than the published rate of the government, being commensurate

with the present commercial value of the crops according to the kind and age of the crops.

The standard rate of land compensation published by the Sarawak government is about

RM 1,875/ha, where the advertised agricultural land prices in and around the project area

vary between RM 10,000 to RM 60,000/ha as of May 2014. However, Sarawak Energy’s

compensation rate for the land for towers is based on RM 80,000/ha or RM 1,800/tower

on average (the size of the tower bases differs depending on terrain and location). Any

transaction costs such as administrative charges, taxes and registration costs will be borne

by Sarawak Energy.

Based on preliminary data, Sarawak Energy acknowledges that the current land acquisition

and compensation processes may not be fully in line with ADB Safeguard Policy Statement

(2009) and its recommended practices, especially in timing of the payments as it involves

other state institutions, as stipulated in the Sarawak Land Code and the Electricity

Ordinance and established practices.

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It is significant that the determination of the extent of Native Customary Rights in Sarawak

remains a work in progress.

Based on aerial surveys conducted in the 1950s, at a time when Sarawak was under British

colonial administration, about 1.6 million ha of NCR land have been identified. Indigenous

communities, comprised of Bidayuh, Ibans and the Orang Ulus, hold the vast majority of

this land.

In 2010, the State of Sarawak commenced survey to define the boundaries of NCR land to

prevent encroachment and trespass. So far, up to March 2014, a total of 367,616 ha of NCR

land have been successfully surveyed, and this program will continue in 2015 and beyond.

In this context, any proposal for Sarawak Energy to use or acquire native customary land

for the purpose of the project has the potential to trigger scrutiny of matters of individual

or communal land ownership which have previously been dormant.

This means that the payment of compensation is potentially delayed by negotiation, not

only about the fairness of the quantum of such compensation, but also in relation to the

legal identity of the land owner where that issue has not previously been determined.

This report explains the overall process of the Sarawak State’s land acquisition, crop

compensation and the rights of the people and the grievance system under the law of the

state. Sarawak Energy is committed in improving its systems and processes to bring them

to international standards and meet international benchmarks in the medium term.

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2 OBJECTIVE OF THE REPORT

As the preparation of the draft REMDP was based on the conceptual design, there is a need

to update the REMDP following the final detailed design. The objective of this report is to

update the draft REMDP, and at the same time, to determine whether the land acquisition

which have already been implemented were consistent with ADB’s safeguard principles

and requirements. This report will be made available to the public through ADB website in

accordance with ADB information disclosure requirements.

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3 PROJECT DESCRIPTION

Sarawak Energy is planning to develop the Sarawak-West Kalimantan 275 kV Transmission

Line as part of the ASEAN Master Plan for Connectivity. This Project is also related to the

energy supply plan under Sarawak Corridor of Renewable Energy (SCORE). The

transmission line will run from Mambong in Sarawak to Benkayang, West Kalimantan (see

Figure 1). The Project will connect to the interconnection transmission line between

Benkayang substation in West Kalimantan and the border with Malaysia.

The 275/33kV Mambong Substation is located about 22 km south of Kuching, the capital of

Sarawak. From here the transmission line will stretch due west from Mambong to Serikin,

adjacent to the Sarawak–Kalimantan International Boundary passing south of the Bau

Township.

3.1 Project Components

The Project covers two main parts:

Part A: Transmission Line

A new 275 kV double-circuit transmission line from the existing 275/33 kV Mambong

Substation to the Sarawak–Kalimantan International Border. The length of the

proposed transmission line is 46.8 km on Sarawak State.

A right-of-way (ROW) with a width of 40 m (2 x 20 metres) will be established for the

transmission line. This will require removal of trees and all structures within the ROW.

The transmission line will be supported by 144 steel lattice towers approximately 340

m apart. Each tower base will be approximately 15 m by 15 m in size. Based on the

transmission line length of 46.8km, approximately 3.3 ha of land will be acquired for

the towers.

Part B: Substation

Construction of new 275 kV feeder bays at the existing Mambong Substation. This

substation component of the Project will not involve resettlement or land acquisition.

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Figure 1: Project Location

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3.2 Alternatives Considered to Avoid or Minimize Land Acquisition

Based on the final design, a total Corridor-of-Impact (COI) of 40 meters for the transmission

line is used as basis for estimating the scope of resettlement impacts.

The final route selection has been done by ensuring minimal impacts to the communities

within the COI:

Consultation with project affected community (PAC);

Looking at alternative design and sites: Sarawak Energy is taking all possible steps to

avoid residential areas as well as public recreational areas, areas of worship,

cemetery and water catchment areas so as to minimize the impact of the

transmission lines on the communities. Wherever possible, residential areas and

other sensitive areas (in terms of livelihood systems, customary uses and ecological

significance, etc.) are avoided.

Re-routing: The final line route is subjected to the ground sentiments brought up by

the affected land owners. Three (3) locations was identified as areas where the

alignment of the line route need to be realigned due to owner objections with reason

and also due to technical requirements. The locations are from tower AT4A to AT4B,

T11/9 to AT12/1 and 15A to 16I.

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4 SCOPE AND PROGRESS OF LAND ACQUISITION

4.1 Scope of Land Acquisition

The transmission line will be supported by steel lattice towers approximately 340 m apart

(depending on terrain and location). In Sarawak, the typical height of towers will be less

than 50.4 m and designed to maintain the clearance of 10 m to ground. Each tower base

will be approximately 15 m by 15 m (225 m2 or 0.0225 ha) in size, with each of the four

tower legs supported by foundations designed for the soil conditions at the site. Based on

the transmission line length of 46.8 km, 144 towers will be required, with a total of

approximately 3.3 ha. In most cases, existing landowners will be able to continue to use the

land beneath the towers for livelihood purposes.

A right-of-way with a width of 40 m (20 m x 2) will be established for the transmission line.

This will require removal of crops/trees and all structures within the right-of-way. The total

land utilized for the ROW will be approximately 184 ha.

No houses or other significant structures will need to be relocated, and the overall impact

will be limited in areas of cultivation and secondary growth that has already been affected

by agriculture.

The number of affected peoples is 144 for 144 towers (Title Land: 20 affected peoples for

10 towers, Native Land: 124 affected peoples3 for 134 towers) and 590 affected peoples for

ROW. There are no vulnerable affected households (those below the poverty line, the

landless, the elderly, female headed households, women and children, and those without

legal title to land) or severely affected households who need special assistance or

particular attention.

3 The number of affected peoples for native land is the number of members (households’ heads) in affected communities.

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The total land required for the Project is summarized as follow:

Table 1: Land Required for the Project

Component Scale Land required (ha) Number

of AP* Key Effects

Title Native Total

Tower Base 144 towers 0.225 3.06 3.285** 144 Permanent

acquisition of land

For ROW 46.8 km 27.04 156.875 183.915 590 Removal of

crops/trees and structures***

Total 27.265 159.935 187.2 734

TL: Transmission Line, AP: Affected Peoples

* The number of AP (affected peoples) for native land is the number of members

(households’ heads) in affected communities.

** The total size of the land required for tower bases is bigger than 3.240 ha (15m x 15m x

144 towers = 32,400 m2), because some towers needs more than 15m x 15m of land due

to topographic situation.

*** There is no structure affected by this project.

In addition, trees outside the ROW but still tall enough to pose a risk to the safety of the

line will be removed and compensated.

4.2 Progress of Project and Land Acquisition

The construction work started in May 2013, and as of 25 April 2014, the foundations of 96

towers (out of 144 towers) have been installed, and 45 towers had been erected (Table 2).

94.4% of access road construction has been completed.

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Table 2: Project Progress as of 25 April 2014

Item Description Status /Location Total Done Forecast

Next Month

% Complete

1 Centre Line

Profile Survey Completed km

48 48

100%

2 Soil Probe Test (Mackintosh)

Completed tower 144 144

100%

3 Soil

Investigation Completed Location – T14/6, T14/11, AT14B, AT3A, T3A/1, T10D/1, T8A/9

tower 7 7

100%

4 Access

Construction

In Progress - Completed Location – AT1-AT2, T3/1- T3/3 - T8A/8, T8A/9 - T11/8,

T12/2 – T14/11, T14/13 - AT16I tower

144 136

94.4%

5 Easement Clearing

In Progress – Completed Location - AT1 – AT3, T3/1 - T11/9, T12/2 – AT16A

km 46.74 45.22

96.76%

6 Foundation Test Foundation Test Light & Heavy Completed

on 2 & 3 Aug 2013 set

2 2

100%

7 Foundation Installation

Completed Location – AT1, AT2, T3A/2, T3A/3, AT4, T4/1, T4/2, T4/3, T4AA/1,

T4AA/2, AT4B, T4B/1, T4B/2, AT4C, AT4D, AT5, T5A/1, T5A/7-T5A/9, T6/2 – T6/6, T7/1 – AT8A, AT9, AT9A, AT9B, AT9C, AT9D, AT10, AT10C, T10C/1, AT10D, T11/3 – T11/5, T12/1 – AT14, T14/1 -

T14/11, T14/13, T14/14, T14/15 - AT15A

tower

144 96

20 66.70%

8 Tower Erection

Completed Location – T3A/1, T3A/3, T4/1, T4/3, T4AA/1, T4AA/2, T5A/1,

T7A/2, T7A/3, T7/4, T8/1 – T8/8, T12/2 - T12/8, T11/3, T13/1 - T13/8, T14/2,

T14/3, T14/5 - T14/8, T14/10, T14/11, T14/13, T14/15, T14B/2

tower

144 45

30 31.3%

9 Tower Earthing

Completed Location – AT1, AT2, T3A/2, T3A/3, AT4, T4/1, T4/2, T4/3, T4AA/1,

T4AA/2, AT4B, T4B/1, T4B/2, AT4C, AT4D, AT5, T5A/1, T5A/7-T5A/9, T6/2 – T6/6, T7/1 – AT8A, AT9, AT9A, AT9B, AT9C, AT9D, AT10, AT10C, T10C/1, AT10D, T11/3 – T11/5, T12/1 – AT14, T14/1 -

T14/11, T14/13, T14/14, T14/15 - AT15A

tower

144 96

20 66.70%

10 Stringing Works - km 48 0

0%

11 Checking & Inspection

- km 48 0

0%

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As legal identification of the ownership authorized by LSD is requisite for the compensation

of Native Land, permanent acquisition of Native Land for tower bases is handled by the

Land and Surveys Department (LSD) while all the other compensation (for permanent

acquisition of Title Land, loss of assets, and temporary loss of land and other impacts on

non-land assets during construction) will be directly paid by Sarawak Energy to affected

peoples. LSD engaged surveyors for detailed measurement survey for towers and decided

actual area for towers. Negotiation with the affected peoples has been completed by

Sarawak Energy and LSD except for 4 Native Customary Land owners which are still going

on (Chapter 7.2). For all the 144 towers, soil probe test has been completed. For Native

Customary Land, the budget for land compensation will be handed over from Sarawak

Energy to LSD upon the completion of the necessary survey. Upon receiving the budget,

LSD will pay the compensation to affected peoples (Native individual or communities) that

have (inherited) customary right over the land for Native Land. Sarawak Energy will make

direct payment to the owners of Title Land upon the completion of the survey of the

completed tower bases.

Crop compensation has been handled since July 2012 by Sarawak Energy based on its own

schedule for crop compensation. Crop to be removed is categorized into (i) tall crops, (ii)

low crops, and (iii) danger trees.

(i) “tall crops” are certain to affect the safety of the line and are therefore necessarily removed in advance of construction. Such compensation is paid on an ongoing basis not long after crop destruction and has now been completed along the line route.

(ii) For "low crops" (e.g. pepper or cocoa), compensation would not be provided initially (because the crops do not grow high enough to affect line safety), however, compensation does becomes payable if such crops are destroyed during the actual construction of the line. This cannot be determined until the construction crew is on the ground - but is paid shortly after any crops are destroyed.

(iii) "danger trees" are trees outside the easement but still tall enough to pose a risk to the safety of the line. Compensation will be paid after the particular crops/trees are removed following an assessment on site - either during or after construction.

To date, the total crop compensation for “tall crops” paid out totaled RM 5,959,663.50,

which is about 65% of the total budget allocated for crop compensation.

Where 'land damage' occurs, either through the construction of the access road or

underneath the line, compensation is payable once construction of the project is complete.

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Photo 1: Payment for crop compensation in the progress.

Photo 2: Overview of the payment for crop compensation between wayleave officer

and land owners.

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Photo 3: One of the recipients receiving his cheque.

Photo 4: Planting of wayleave notice to affected land whereby the land owner cannot

be located.

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Photo 5: Sample for Crops Counting Field book used for recording affected crop.

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Photo 6: Sample for Schedule of Cultivation Form which is converted from Crops

Counting Field book.

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5 SOCIOECONOMIC INFORMATION AND PROFILE

An initial Social Impact Assessment (SIA) was carried out in 2009. The subsequent SIA

started on March 14, 2011 and was completed at the end of March 2011.

For the purposes of SIA study and REMDP, the socio-economic survey focused on those

areas within 3 km radius of the Project site. Collection of primary data for socio-economic

study was carried out by means of a socio-economic survey. A subsequent updating of the

information collected was carried out by the Sarawak Energy Environmental Impact

Assessment (EIA) Division, with the information collected from the EIA and the community

consultation work done by Sarawak Energy Wayleave department. Information collection

employed both the qualitative and quantitative approaches. In the qualitative approach,

respondents’ personal views and observations were obtained. In the quantitative approach,

information was collected by assigning numerical values to concepts under study and

analyzed objectively.

For the household level surveys, only those villages in the 1-km radius affected zone were

surveyed. In view of the high cost of carrying out a survey, randomly selected samples from

among the households of the villages in the Project area were taken. In these household

surveys, sample size of between 5% and 10% of the total number of households in the

villages within the 1-km radius (which is a number far greater than the likely number of

affected households) were randomly selected and interviewed. Given the small scale of

likely impacts, this is considered sufficient for statistical analysis of the socio-economic

situation of the communities in the Project area. A total of approximately 2,000 households

exist in these villages (within a 1-km radius of the concept centerline). Clearly not all of

these households would be affected, however, to ensure that the socioeconomic survey

achieves its objective to properly understand the socio economic conditions of the

community, a broad sample based survey of 141 households (7% of all the households in

the villages) was completed. This will allow the project design to reduce the overall impacts

and particularly address key socioeconomic aspects of the community.

Demographic data of the affected villages were obtained from district offices, and

population statistics from Department of Statistics, Malaysia. Base maps on land use,

infrastructure and geo-physical features and finalized route of the proposed transmission

line were obtained from LSD and Sarawak Energy. This information was useful for

complementing the primary data collected.

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5.1 Regional Profile

The proposed transmission line passes through 11 villages in Siburan Sub-district of

Kuching District and 16 villages in Bau District of Kuching Division.

Kuching Division is one of the most developed divisions in Sarawak. The division consists of

three Districts (i.e. Kuching District, Bau District and Lundu District). Kuching District has

several advantages over other divisions in terms of industrial activities, agriculture,

infrastructure and educational services. Kuching City, the State Capital of Sarawak exerts a

strong influence as an administrative, commercial, financial and service centre over the

whole Division.

Siburan, which is about 28 km by road from Kuching City is the administrative head office

of Siburan Sub-district; and Bau which is about 35 km by road from Kuching City is the

administrative headquarters of Bau District sharing a common border with Kalimantan

Barat, Indonesia.

5.2 Demographic Features

The following summary of socioeconomic information and profile of the affected

communities (villages within 1km radius of transmission line) is derived from the SIA

findings (2011).

Table 3: Demographic Features in the Villages within 1km Radius of Transmission Line

Population, Household, Household Size And Gender Ratio

10,587 people

2,023 households

5.3 persons/household

Gender ratio of males to females was 0.93:1 i.e. slightly more female than male in these villages, attributed to the out-migration of males working in other places outside the villages

Ethnicity and Religion (cf. Chapter 5.3.2)

Bidayuh (95%) is the main ethnic group with small proportions of Chinese, Iban and Malays who are tied to the villages by marriage.

Majority of the population are Christians. Very small proportions of the population possessed the faiths of Islam, traditional Chinese religion, Buddhism or Traditional Bidayuh religion.

Living Quarters Most of the houses were of single-storey or double-storey detached types, made of timber or semi-timber and concrete structures.

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Communication Modes

All the 27 affected communities are accessible by tar-sealed or gravel roads. As such, the predominant mode of communication between the nearest service centres and the villages is by vehicles; either using public transport or own vehicles.

Utilities, Facilities and Services

Water Supply:

In Siburan, treated water supply from Kuching Water Board (KWB) or Public Works Department (PWD) is available to 5 villages; while the rest are installed with gravity-fed water supply system.

In Bau District, 4 villages had to depend on river water and river water to complement their water supply by gravity-fed system as the sources of water were inadequate to meet the villages’ requirements.

Power Supply:

All the villages had electricity supply from power line with the exception of a very few households in two villages (Kampong Puak and Kampong Seroma in Bau District) relying on generator sets.

Telecommunication Facilities and Services

Main forms of communication are radio, TV, mobile phone and newspapers, friends and relatives working outside the villages and occasionally government officers.

All the 27 villages were able to use the mobile phone services. Fixed-line telephone facilities were only available to 3 villages.

Sanitary Facilities and Services:

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Sanitary facilities, toilet (pump or pour-flush systems) and waste disposal services were in satisfactory state.

Rubbish collection service is available in most villages. For those villages without the services of the local councils, disposal of rubbish is by means of rubbish pits and/or burning.

Health Facilities and Services:

Due to their proximity to Kuching City, the villagers have access to various health centers including the Kuching General Hospital and Bau Hospital and various private general medical practitioners in Bau or Kuching.

Education Facilities and Services:

All the affected villages have access to primary and secondary schools which are located nearby.

Community Halls And Places Of Worship:

Almost every village has a community hall which is an important institution for meetings and indoor social activities such as during Gawai. In addition, almost every village has a chapel.

Land Use The proposed transmission line does not pass over any towns or major settlements. The transmission line will traverse residential areas up to approximately 4.16% in 1 km study corridor respectively.

There are no forestry concessions in the area but there is one oil palm development (SALCRA) near the international boundary at Serikin.

Shifting cultivation areas are most extensive, accounting for 39.57% (within 1 km) and 40.57% (within 3 km) of the route traversed by the line route.

Household Economic Activities

Full time farming - 12% of the households interviewed.

Part time farming - 38% of households. Those engaged in farming were predominantly those in the older age groups of above 40 years.

Main crops - hill and wet paddy, cash crops of rubber and pepper, smallholder oil palm and small-scale cultivation of other food crops, such as vegetables, fruit trees, and other annual field crops. Food productions are mainly for own consumption with excess for sale.

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Small scale hill paddy planting.

Oil palm is fast becoming the important cash crops in the study area.

Full time wage earning employment - 70.2% of the households have members engaged in full-time wage-earning employment, while a very small proportion (1.4%) is engaged in part-time employment.

Non-farming wage-earning employment include employments in government services, private sector, contract works, running sundry shops, construction industry, catering industry, carpentry works, transport business and others. The younger and more educated members of the households are more inclined to seek employment in non-farming forms of employment especially in government services and private sector as they are more remunerative than farming. In some villages, there are higher proportions of household members engaged in non-farming than farming activities.

One factor contributing to high percentage in full time employment is close proximity of the villages to the places of work in Kuching City and Bau Town.

Self-employment and business activities– only 5% and 1.4% respectively are involved in work such as carpentry, masonry works, house-building, boat building, and business activities.

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Education level of working groups

Educated - 94.6% of the total number of members of the survey households. Out of this:

48.7% had attained SPM (Sijil Pelajaran Malaysia) (or Malaysian Certificate of Education or passed Form 5 equivalent) and STPM (Sijil Tinggi Pelajaran Malaysia, Higher School Certificate) level;

19.8% had attained SRP (Sijil Rendah Pelajaran) and Form 3 level;

16.7% had attained primary educational level;

9.2% holding tertiary education qualifications.

Estimated Household Cash Incomes

The estimated household incomes range between RM 600/month and RM5,000/month with the average of about RM 1,100/month.

Farm Income: 28% of the respondents were in the monthly income brackets between RM 100/month and RM 400/month; 11.3% in the income bracket of RM 830/month – RM 1,500/month; 1.4% with monthly farm income exceeded RM 1, 500. Presumably, they had larger area of cash crops, and bigger share of the SALCRA oil palm scheme.

Wage earning Income – 29.8% respondents were earning above RM 1,500/month; 21.3% was earning below RM 800/month; 15.6% were earning between RM 811/month and RM 1,500/month.

Self-employment Income - 6.3% earned incomes above RM 830/month. 4.3% earned between RM 250/month and RM 800/month.

Business activities - From the small proportions (8.5%) of respondents in the surveys, majority of those who were engaged in business were small-scale businessmen with monthly earning of less than RM 500/month. The smaller proportions of businessmen earned between RM 800/month and RM 1,500/month.

Household Expenditure

Total average household expenditures was about RM 843/month and that the monthly expenditures ranged between RM 720 and RM 1,000.

Food item was taking up the highest proportion of the monthly expenditures average about RM 408. It could have been less for those who grow their own paddy and vegetables.

Expenditure on transport was the second highest expenditure item representing about 26% of their monthly expenditures mainly attributed to high cost of petrol and maintenance of their own vehicles.

Expenditure on education constituted about 22% of the average total household expenditures placing it the third highest household

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expenditure item.

Migration Based on the surveys of the 141 households among the affected villages, 83 households had members migrated out of the villages, representing 58.9% of the total surveyed households.

The main reasons for the out-migration included outside employment, following spouses and schooling.

Great majority of migrants (about 91%) resided in Peninsular Malaysia and main towns in Sarawak.

Vulnerable Group

The communities are peri-urban in nature due to their location very close (within daily commuting distance) to Kuching which has a very broad economic base including numerous employment opportunities in many industries that are major employment generators; in the public sectors, government agencies, schools, military and police; in the private sector, catering industries, transportation industries; manufacture industries, construction industries, and others.

In view of the socio-economic settings of the affected communities, the level of vulnerability is very low, and the negative impact is relatively insignificant where the community livelihood would be minimally impacted. Sarawak Energy has taken measures to compensate all affected peoples. There are no vulnerable affected households (those below the poverty line, the landless, the elderly, female headed households, women and children, and those without legal title to land) or severely affected households who need special assistance or particular attention.

While it is clear that there is no resettlement or relocation of households or individuals required for the project, compensation will be made mainly for the crops, tower base and land damages due to the access road construction and due to construction of the tower base. For those affected landowners, especially those involved in agriculture, the group of affected were still able to continue with agricultural activities but would be limited to a certain height limit. From the site observation, those affected are happy with the compensation.

5.3 Indigenous People: Specific Issues

5.3.1 Vulnerability Assessment

Most of the villagers in the affected settlements are predominantly Bidayuh (95%) with

small proportions of Chinese, Iban and Malays who are tied to the villages by marriage. In

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Kampong Sinar Baru, there were higher proportions (about 20%) of Malay, and Chinese

with a small proportion of Iban.

Majority of the population are Christians and as such, a village chapel is usually a

prominent feature in most villages. Very small proportions of the population were found to

have possessed the faiths of Islam, Traditional Chinese religion, Buddhism and Traditional

Bidayuh religion which is a diffuse collection of beliefs and rituals, largely related to the

paddy cultivation cycle.

The Bidayuh is one of the many major ethnic groups in Sarawak, mostly concentrating in

Kuching Division; and it is a majority group in the Siburan Sub-district, Bau District and

Lundu District of Kuching, as well as Serian District of Samarahan Division. In Kuching

Division, it is the third largest ethnic group after the Chinese and Malay, however outside

the urban areas is the predominant ethnic group as the Chinese and Malays are heavily

concentrated in the urban areas.

In the proposed Project area, the Bidayuh are more economically well-off than most rural

indigenous communities in Sarawak and, as well as being the dominant community in the

Project area, are also, from a socio-economic perspective, significantly less vulnerable. This

is demonstrated by their relatively high incomes from wage-earning employment and other

non-farm remunerative economic activities.

Based on the socio-economic surveys, only 12% of households surveyed depend on

agriculture for their livelihoods, with another 38% engaged in part-time farming. This trend

is attributed to a change in the socio-economic landscape characterized by greater

employment opportunities in the non-farming sector, better access to formal education

and better communication system. 70% of the households have at least one member

engaged in full-time wage earning employment. The SIA found that 86% of households own

at least one car.

Moreover, there is a relatively high proportion (58% from surveys) of the workforce having

attained a high level of education of at least SPM (completion of high school). Over 20%

have achieved a tertiary qualification. This group of workforce is holding remunerative jobs

in the technical and sub-professional working group; and those at the tertiary educational

level they are holding jobs in the executive, managerial or professional working groups in

the employment market.

There are high proportions of household members engaged in non-farm employment, and

this is attributed to high educational attainment and the broad economic base of the

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locality. In addition, the communities have access to essential facilities and services (water

supply, electricity supply, telecommunication and postal services) that affect the quality of

life.

Importantly, the communities in the Project area have good accessibility to urban services

and facilities. The communities are peri-urban in nature due to their location very close

(within daily commuting distance) to Kuching which has a very broad economic base

including numerous employment opportunities in many industries that are major

employment generators; in the public sectors, government agencies, schools, military and

police; in the private sector, catering industries, transportation industries; manufacture

industries, construction industries, and others.

In view of these socio-economic settings of the affected communities, the level of

vulnerability is very low, and would not be negatively affected by the proposed Project.

However, there will still be certain impacts on the affected households especially those

smaller percentage of households who will be affected by the loss of agricultural lands and

crops and whose livelihood still depend on farming. For these households, the provisions of

the REMDP are particularly targeted.

5.3.2 Specific Considerations

ADB’s Safeguard Policy Statement (2009) (Safeguard Requirement 3 – Indigenous Peoples

(SR3)) outlines the requirements that borrowers/clients are required to meet in delivering

Indigenous Peoples safeguards to projects supported by ADB. The policy requirements are

designed to safeguard Indigenous Peoples rights to maintain, sustain, and preserver their

cultural identities, practices, and habitats and to ensure that projects affecting them will

take the necessary measures to protect these rights.

SR 3 is triggered if: “…a project directly or indirectly affects the dignity, human rights,

livelihood systems, or culture of Indigenous Peoples or affects the natural resources that

Indigenous People own, use, occupy or claim as their ancestral domain”.

Based on the socio-economic data gathered, it is considered that the Project will not

impede rights to maintain, sustain, and preserver their cultural identities, practices, and

habitats. Similarly, given the small reliance on land based livelihood systems, it is

considered that any impacts on these aspects would be minimal.

It is noted that project activities will not include:

(i) commercial development of cultural resources and knowledge of Indigenous Peoples

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(ii) physical displacement from traditional or customary lands; or

(iii) commercial development of natural resources within customary lands.

Notwithstanding the above, it is considered that SR 3 is triggered for the purpose of this

project.

SR3 recognizes the potential vulnerability of ethnic minorities in the development process;

that ethnic minorities must be afforded opportunities to participate in and benefit from

development equally with other segments of society; and, have a role and be able to

participate in the design of development interventions that affect them. The Indigenous

Peoples policy objectives are to:

(i) design and implement projects that fosters full respect for Indigenous People's

identity, dignity, human rights, livelihoods systems, and cultural uniqueness as

defined by Indigenous Peoples themselves and

(ii) ensure that Indigenous Peoples receive culturally appropriate social and economic

benefits, do not suffer adverse impacts as a result of projects, and can participate

actively in projects that affect them.

In any ADB interventions, the approaches to be used are as follows:

(i) to achieve the greatest possible reduction of poverty among the affected indigenous

peoples;

(ii) when negative impacts are unavoidable, they should be minimized as much as

possible, and appropriate measures will be taken to mitigate the adverse impacts;

(iii) in enhancing the benefits of a development intervention for indigenous peoples or

reducing negative impacts of a development intervention, clear mechanisms for

accurate and objective analysis of their circumstances will be prepared; and

(iv) the mechanisms for any intervention must be transparent and should ensure

accountability.

Accordingly, the key approach to ensuring the requirements of SR3 are fully satisfied

through meaningful consultation. ADB Safeguard Policy Statement (2009) defines

Meaningful Consultation as:

A process that (i) begins early in the Project preparation stage and is carried out on an

ongoing basis throughout the Project cycle; (ii) provides timely disclosure of relevant and

adequate information that is understandable and readily accessible to affected peoples; (iii)

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

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

enables the incorporation of all relevant views of affected peoples and other stakeholders

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into decision making, such as project design, mitigation measures, the sharing of

development benefits and opportunities, and implementation issues.

Consultation has started early in the process, well before the route is finalized, with

substantive consultation having been carried out to date. During the detailed design of

phase of the Project, meaningful consultation continued so that affected peoples have an

opportunity to influence the route alignment (and therefore likely impacts) associated with

the transmission line.

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6 INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

The project recognizes that meaningful consultation is a process that (i) begins early in the

project preparation stage and is carried out on an on-going basis throughout the project

cycle; (ii) provides timely disclosure of relevant and adequate information that is

understandable and readily accessible to affected people; (iii) is undertaken in an

atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and

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

incorporation of all relevant views of affected people and other stakeholders into decision

making. The public consultation and disclosure process has been undertaken in this spirit

and will continue to be so.

Since 2009, and more intensively since 2011, there have been public consultation and

participation briefings, presentations and meetings, which have taken place at the local

level. Dialogue sessions were held with the representatives of the village headmen, Village

Security and Development Committee (VSDC) members, heads of affected households, and

other key informants, in order to explain about the project and understand community’s

response to the project, perceived benefits and impacts, local needs/options, project

options and choices. During detailed design of the transmission line, the views and

perceptions of the village headmen and villagers were addressed in detail, again to ensure

the detailed design process is properly informed so as to avoid and minimize impacts, and

to ensure thorough consideration of the issues raised by the community during

consultation. Both men and women participated in dialogue, and freely expressed their

opinions. These processes have led to the consent of the affected households to the land

acquisition program presented in this REMDP, though 4 objections for 7 plots of Native

Land is still going on (See Chapter 7.2). In July 2012, before implementing REMDP, a project

information booklet (PIB) written in Bahasa Malaysia was distributed to the affected

peoples.

6.1 Stakeholders

There are some main stakeholders associated with the proposed Project. They are as

follows:

(i) Communities in the vicinity of the proposed transmission line that will be affected by

the proposed Project, especially in the loss of land assets and crops and cultural assets

such as the burial grounds and cultural sites. These stakeholders are the main focus of

the SIA study.

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Sarawak Land Consolidation and Rehabilitation Authority (SALCRA), a statutory body

responsible for the development of NCR land operating a few oil palm estates and a

mill in the vicinity of the proposed transmission line. They will lose some area of

plantation land and crop due to the proposed transmission line.

(ii) Land and Survey Department (LSD) which is administering land matters, and

enforcing the Sarawak Land Code on behalf of the Sarawak Government to ensure

proper land use. It will play its role in determining land status of the lands affected by

the proposed Project and the rates of compensation for the loss of land and assets

associated with this loss as well as administering the payment of compensation for

the affected communities.

(iii) Sarawak Energy (through its operating subsidiary SESCO) which is responsible for

implementing the Project and enforcing the Electricity Ordinance. Sarawak Energy is a

company set up by the State Government to establish and operate electricity supply

system in Sarawak which is responsible for the smooth implementation of the

proposed Project.

(iv) Offices of Bau District and Siburan Sub-district (Kuching District). These front-line

government agencies will be responsible for assisting in the settlement of grievances

and disputes brought up by members of the affected villages.

6.2 Dialogue Sessions and Discussions

The following are dialogue sessions and discussions employed for the project:

Initial SIA by SOFRECO France (2009), SIA and EIA by CKSB in 2011 and 2012

respectively – During the studies, dialog, group discussions and one to one interviews

were carried out with the communities and affected peoples and they were briefed on

the proposed development, its components and potential impacts.

Community Engagement and work done by Sarawak Energy Wayleave Department and

Sarawak Energy EIA Divisions and Sarawak Energy Project Execution Team. Sarawak

Energy Wayleave Department conducted the project briefing to the District Officers

together with the affected Native land owners/claimants through civic assemblies.

During the civic assembly, the land owners/claimants were made aware of the project

and explanations provided about the rights of the land owners with regards to

compensation. While for Title Land owners, newspaper announcement (refer to Photo

7 and Photo 8) and a Wayleave notice was delivered directly to the land owner which

required a reply within 14 days (agree/object) to the proposed line route. If there was

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any objection, the land owner has to respond and reply the letter of objection to the

Director of Land & Survey.

Table 4 shows the outline of three major events organized to disseminate project

information to the affected Native land owners/claimants and District Officer. In

addition to these events, a number of unrecorded individual meetings, but rather

casual ones, were held with affected households as mostly for enquiries and

clarification on small issues.

Photo 7: Announcement in the newspaper for land affected by the Project

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Photo 8: Announcement in the newspaper for land affected by the Project

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Table 4: Civic Assembly and Meeting with Affected Land Owners, Headman and District Officer

Item Date Venue Time Attendees Matter Arise/discussed Action

1 29 Jan 2012 Community Hall, Krokong Pasar Village,Bau Town

2:00 pm Senior Administrative Officer

Chief Police of Bau

Local headmen

Affected land owners

Sarawak Energy Wayleave Division

To expedite the tower base compensation

Land owners request Sarawak Energy to follow telecommunication approach by renting the tower based rather than land acquisition

Sarawak Energy to make known the crops compensation rate

Ensure the work will be carried according to schedule.

Access road damage will be compensated during construction.

Information on compensation rate is based on LSD’s rate and X-gratia.

2 11 Feb 2012 Community hall

Punau Village

Kuching

7:30pm Local Headmen

Affected land owners

Sarawak Energy Wayleave Division

No issue being raised. All the affected land owners agreed to the project

-

3 25 Feb 2013 Headman residential

Bawang Village

Kuching

7:00pm Local Headmen

Affected land owners

Sarawak Energy Wayleave Division

Affected land owners question the crop compensation exercise and the crops compensation rate

Effect of the transmission line to the low crops

Information on compensation rate is based on LSD’s rate and X-gratia.

Sufficient electrical clearance is maintained as required by the Electricity Ordinance. There would not be any impact on the low crops.

Note: Both genders were equally represented during the Civic Assembly as shown on Photo 9. However, number may differ depending on land

ownership.

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Photo 9: Briefing with affected owners. Representation of women are almost

equal.

Photo 10: Project update and briefing with the District Officer, Pemanca, Penghulu,

Ketua Kaum and Ketua Kampung.

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6.3 Information Disclosure Measures

Sarawak Energy prepared a project information booklet (PIB) written in Bahasa Malaysia, the language spoken by the affected peoples, and distributed to the affected peoples in July 2012. The basic information provided in the leaflet are: (i) brief project description; (ii) detailed project location; (iii) policy on land acquisition and resettlement; (iv) project resettlement entitlements; (v) compensation and income restoration; (vi) grievance redress; and, (vii) implementation schedule.

Information disclosure is an ongoing process prior to project implementation as well

as during project implementation. Sarawak Energy Public Awareness Programme

(PAP) is appended in Appendix 1. The PAP is a co-component of Public consultation

and disclosure program aimed at informing the stakeholders of project plans and

activities in a manner that promotes open dialogue among all interested parties, and

focuses on effecting dialogue with those who are or will be affected by the project.

Coordination of all public consultation, community relations and assistance with

project activities will be the responsibility of the Sarawak Energy Wayleave

Department staff and contractors Public Relation Officer (PRO) who are always

station on site. Their responsibilities include the following:

Identifying when public consultation is needed, then arranging and scheduling

meetings to specifically accommodate need;

Circulating or publicizing agendas and local advertising as appropriate;

Inviting and/or arranging for the presence of specific individuals;

Attending and documenting meetings;

Directing any required follow up;

Working with affected stakeholders;

Assisting project/programme proposals for submittal to Project Director; and

Monitoring project/program milestones, utilization of funds, etc.

Beyond these activities, follow-up work may include additional meetings, arranging

specialized consultants for certain task-specific activities, or bringing specific issues to

the attention of Sarawak Energy Management or the relevant Government

authorities.

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7 GRIEVANCE REDRESS MECHANISMS

Sarawak Energy follows effective grievance mechanisms that allow affected

landowners to voice their concerns early and solve problems working closely with

Sarawak Energy. Depending on the nature of the ownership—Title Land or Native

Land—of a piece of a land, different path is followed to resolve grievances.

For Title Land, most grievances are about the compensation offered by Sarawak

Energy. For Native Land, additional step is necessary to confirm ownership of land

under the Sarawak Land Code, the compensation is usually divided among the

identified people once they establish their right to the Native land.

7.1 Grievance Redress

Complaints can arise in many ways, especially combination of poor communication,

unfair or unreasonable decision, or an inadequate or unfair process. Sarawak Energy

follows its legal obligations and provides a fair opportunity to redress or remedy a

situation.

Beyond its legal obligations, Sarawak Energy is determined to be a good neighbor to

communities affected by its projects. To this end, grievances are taken seriously, not

only in terms of their potential impact upon the smooth implementation of the

project but also the Company’s reputation as a whole. The provision of Ex-Gratia

payments for crops (above the levels specified by law) reflects this approach. All

grievances from both genders will be looked into and settled without discrimination.

It is important to note that nothing in the project grievance redress mechanism will

impede access to legal remedy via the Malaysian and/or Sarawak legal system.

7.1.1 Power to enter on land for the purpose of construction

The first step in any project is to enter a land by Sarawak Energy. The Electricity

Ordinance provides Sarawak Energy such power. The same ordinance also provides

the grievance procedure with regard of entering land with the purpose of installation

of electricity apparatus as follows.

Step 1: The first approach for the owner or occupier is to lodge an objection to LSD,

and LSD shall give notice of that objection to Sarawak Energy. Section 16 (4) of

the Electricity Ordinance stipulates that the time of lodging shall be within

fourteen days after the date of posting of the notice of Sarawak Energy

intension of taking possession of the land. The aggrieved person shall state

their objections to the notice (such as in measurements in the survey of the

land, value of the land, counter claims and others) either in writing or verbally

during meeting with LSD. As stipulated in Section 16 (6), LSD shall proceed to

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inquire into the objections, giving all parties an opportunity to be heard, on

the day so fixed or any other day. As stipulated in Section 16 (7), upon the

conclusion of the inquiry or upon receipt of those recommendations, LSD may,

either unconditionally or subject to such terms, conditions and stipulations as

he thinks fit, authorize or prohibit any of the acts mentioned in that notice.

Generally, LSD shall issue the conclusion within the time limit of one month

after the objection is lodged.

Step 2: If step 1 fails, the next step is to go through court process. For this, there is a

provision in Section 19 of the Electricity Ordinance.

Figure 2: Land Acquisition for Title Land

This process applies to both Native land and Title land.

7.1.2 Multi-stakeholder consultative committee for all grievances

The next project related activity involves land acquisition, specifically, payment of

associated compensations for loss of both land and non-land assets.

During the land acquisition stage, the main objections by affected persons in an area

are: (i) number of plants to be compensated for, (ii) rate of compensation offered,

and (iii) ownership of the land.

Aside from legal grievance procedures, affected peoples or group of affected peoples

can submit complaints directly to co-management unit, or indirectly through the

head of village or the contractor, who will address the problem informally at their

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local level if possible, and if not possible will convey the complaint to co-

management unit. The co-management unit receives and evaluates grievances,

identifies the cause of the objection, and makes decisions on the solutions and on

which agencies are responsible for taking action. The complaints must be addressed

promptly and to be resolved within the time limit of two weeks.

A co-management unit consists of representatives from (i) Sarawak Energy, (ii)

District Offices, (iii) LSD, (iv) Natural Resources and Environment Board (NREB)4, (iv)

local Temmongong (Paramount Chief of Bidayuh community appointed by

government) or Pemaca (regional chief of Bidayuh community appointed by

government) and (v) VSDC. The lead agency for the unit is the District Office.

If the affected peoples are not satisfied with the result, they may then lodge a

complaint to a court of law for adjudication.

The procedure is summarized in Figure 3.

Figure 3: Grievance redress mechanism with Project’s co-management unit

7.1.3 Case of Native Land

Identification of land ownership is the first step in the acquisition of Native Land.

Sarawak Land Code provides the legal framework for resolving any disputes between

the government and the people with regard of Native land’s acquisition as follows.

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Step 1: Once the intended land acquisition is declared, the first approach for an

aggrieved person is to negotiate with LSD by appearing personally or by agent

before the Superintendent of Land and Survey of Kuching Division. Section 49

(2) of the Sarawak Land Code stipulates that the time of appearing before the

Superintendent shall not be earlier than 21 days after the date of posting of

the notice of government intension of taking possession of the land and the

claims to compensation for all interests be made to the government.

The aggrieved person shall state their objections to the notice (such as in

measurements in the survey of the land, value of the land, counter claims and

others) in writing and verbally during meeting with the Superintendent. As

stipulated in Section 51 (1) of the Sarawak land Code, the Superintendent

shall proceed to inquire into the objections on the day so fixed or any other

day. The award under Section 51 shall be filed in the office of the

Superintendent and shall be final and conclusive evidence as between the

Superintendent and the aggrieved person as stipulated in Section 52 (1).

Generally, award shall be filed within the time limit of one to three months

after the claim is made.

Step 2: If step 1 fails, the next step is to go through court process. For this, there are

provisions in Section 56, 57 and 59 and 212 of the Sarawak Land Code to

govern the process and requirements.

Even before the declaration of intended land acquisition, there are opportunities for

any interested person to claim for land ownership, allocation of land, and amount of

apportionment of compensation (See Chapter 8.1.3). The complete process is

explained in the diagram below.

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Figure 4: Land Acquisition for NCR Land

7.1.4 Case of Title Land

Since there is no dispute on title with title land, there is no specific legal framework

with regard of grievance procedure for acquisition of Title Land.

7.1.5 Grievances during Construction Stage

During the construction stage, there may be grievances related to encroachment of

their land by construction contractor, damage to existing access road and bridges to

farms and village during the transportation of construction materials; and other

damages. In this case, complaint can be referred to Sarawak Energy who is

controlling the contractor.

7.2 Grievances Received

Sarawak Energy have actively reached out to the land owners and affected

communities, to reduce or solve any grievances received. In the case of objectors,

such communication is initially undertaken directly by telephone or in person but is

often followed up by written communication, either directly with the objector or

through their appointed legal representative.

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A total of 9 Title Land owners and 5 Native Land owners (communities) objected to

the Project. Upon receiving the objections, LSD through inquiry (the Electricity

Ordinance, Section 16) with the attendance of the land owner(s), concluded that

Sarawak Energy is allowed to work on the land because there is no significant loss.

While the Project was on-going, meetings and project brief were conducted by the

co-management unit with the above mentioned land owners. Some of the land

owners have shown their acceptance to the project with conditions such as quick and

appropriate restoration of the land around the affected area and accessibility to the

land after the construction work especially for farming area. The outcome of the

meeting with land owners shows reduction in the total objection. Out of 9 owners of

Title Land that initially objected, all 9 land owners have agreed to the Project, while

from the Native Land owners, 1 of 5 that objected earlier have now agreed to the

Project.

The negotiation for the remaining 4 objections for 7 plots of Native Land is still going

on. For 2 of them, several meetings were held with through explanation on project

processes and procedure, however, those owners maintain objection and refuse to

acknowledge the receipt of Wayleave Notice. In view of the urgency of the project,

SEB sent a letter on 22 July 2014 to the Superintendent of LSD, seeking their

assistance to conduct the Court of Inquiry to resolve the site entry issue for the

timely completion of the project. SEB is waiting for the LSD’s response to their

request. The other 2 cases cannot be referred to LSD as their lands are currently not

given any native title. SEB referred these 2 claimants to the District Office by sending

a letter on 7 Aug 2014, and is waiting for their response. All 4 cases are expected to

be sorted out within three months after the issuance of the letters. All these

aggrieved owners are engaging their own lawyers, and have the right to appeal to the

Governor at any time, but no case has been brought to the Governor so far.

The compensation budget is not deposited in LSD or court as of this moment,

because the compensation budget will be transferred from SEB to LSD (regardless of

dispute or grievance) only after the transmission line is strung (scheduled in March

2015) (See page 56).

Apart from these 4 cases, SEB is waiting for 1 (one) Native Land owner to

acknowledge the receipt of Wayleave Notice, which was issued on 23 May 2014 due

to a change of the tower location.

Provision of the Electricity Ordinance allows Sarawak Energy to work on the land

(including building the tower) even without agreement of affected peoples, however,

Sarawak Energy will continue to negotiate with the aggrieved owners to reach an

agreement.

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8 LEGAL FRAMEWORK

8.1 National or Local Legal Framework

8.1.1 Law of Sarawak (the Electricity Ordinance)

The relevant sections of the legislations are shown below:

(i) Electricity Ordinance (Chapter 50, incorporating all amendments up to 31 May

2007)

- Section 16 – Power to enter on land for purposes of construction:

This legislation outlines the rights of the licensee to lay, place or carry on, under or

over any land, other than State land, such supply lines, including erection of posts

or any other apparatus necessary for the licensed installation, bearing in mind that

payment of full compensation to all persons affected may be necessary. Before

entering on any land for this purpose, the licensee shall give notice to the owner

or occupier of that land, and the owner or occupier has the right to object to the

proposed intended acts.

The Electricity Ordinance is attached in Appendix 2.

(ii) Electricity Rules, 1999

Under Rule 41: Installation of Aerial Lines:

Rule 41(o): This rules provide the minimum height from the ground in meters of

any line conductor or auxiliary earth wire in still air, depending on voltage load,

situation and locality (over roads, other than over roads, in positions inaccessible

to vehicular traffic). For this Project the voltage will be exceeding 275 kV,

therefore the requirement for ground clearance over roads, other than over roads

and inaccessible to vehicular traffic is 7.3 m for all three situations.

In addition to this, Rule 43 states the following:

Rule 43(b): For any aerial line crossing a road, a suitable cradle guard shall be

erected in accordance with the required Rules.

Rule 43(i): The clearance between a line conductor and a building or structure,

other than a substation, shall be maintained at not less than 4.57 m unless written

permission of the Chief Electrical Inspector has been obtained to provide different

clearance.

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Rule 43(j): No person shall, without the lawful authority of the owner,

management or licensee of the installation, as the case may be, undertake any

work or engage in any activity within 4.57 m of a conductor.

(iii) The Sarawak Land Code, 1958

Referring to the Sarawak Land Code, Chapter 81 (1958 Edition)(Laws of Sarawak),

there is no specific mention of a required width for a ROW of a power line

development.

In Part II, Section 5(3)(a), it is mentioned that with regards to native customary

rights land, (quote) any native customary rights may be extinguished by direction

issued by the Minister…(unquote). Section 5(b) further states that (quote) any

person who desires to make any claim for compensation must submit his claim

with evidence in support thereof to the Superintendent…(unquote).

The land to be compensated is the area that will be physically acquired by the

Government, i.e. where structures will be built on.

The Sarawak Land Code, Chapter 81 (1958 Edition) is attached in Appendix 3.

8.1.2 Land Acquisition Procedures (Title Land5)

Electricity Ordinance (Chapter 50)

The Sarawak Electricity Ordinance does not distinguish between Native or Non-

native land. Instead, it provides a general power to enter land for the purpose of

installation, removal and repairs. The procedures are summarized here and shown

in the flow chart below:

Section 16 (1) of the Electricity Ordinance (amendment 2007) stipulates that when

the licensee are required to install any system of distribution of energy under this

Ordinance, the licensee must compensate the individuals affected which could

include an annual payment for use of land.

Before any works can be done on the affected land, the licensee must give notice

to the affected individual of the licensee’s intention to conduct works as stipulated

under Section 16 (1), and inform the affected individuals of their rights to object

(Section 16 (2)).

5 Alienated Land (Title Land) – land held under documents of titles in Mixed Zone Land. Mixed Zone Land may be alienated to and occupied by any race without restriction. Within this class of land, natives may still occupy land under customary tenure and such land cannot be alienated to others until native customary rights have been extinguished by or surrendered to the State. Registered titles in Mixed Zone Land may be freely dealt with among members of all races.

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Upon receiving such notification either by means of registered post or the notice

posted on the land (Section 16 (3)), the occupier may complain within 14 days

upon receiving the notice to the Director of Lands and Survey either verbally or in

writing (Section 16 (4)). The Director of Lands and Survey shall give notice of that

objection to the licensee (SEB). If the objection is not withdrawn, the Director of

Land and Survey shall hold an inquiry, giving both parties an opportunity to be

heard (Section 16 (6)). If the Director decided in favor of the licensee, the affected

party may appeal to the Yang di-Pertua Negeri (Governor), and his decision will be

final (Section 19).

If the affected individual agrees with the licensee compensation but the licensee

fails to pay, the affected individual may seek civil action against the licensee

(Section 21).

Figure 5: Sarawak Energy Land Acquisition Procedure for Title Land (Alienated Land)

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8.1.3 Land Acquisition Procedures (Native Customary Land6)

Definition of Native Customary Land is described in the Sarawak Land Code, Chapter

81 (1958 Edition), Section 5, and it explains in detail the Native Customary Rights

applicable to the State of Sarawak.

The law states that any native customary rights may be extinguished by direction

issued by the Minister, subject to specific procedures which includes a formal

announcement in the form of newspaper publication and exhibiting at the notice

board of the District Office of the area where the land is situated.

The law also states that for any person wishing to make claim for compensation, he

can do so provided he submits his claim with evidence over the land, within a

period of 60 days from the date of notice or publication / exhibition.

In respect of Natives land as defined in the Sarawak Land Code, the following

provisions apply for the owner or occupier of land subject to permanent acquisition

through Land and Survey Department, to get satisfaction in resolving land and

compensation and claims.

Native Land

Native Land as described in Sarawak Land Code refers to land created by means of

Adat of their respective community either for communal or otherwise before 1st

January 1958. The relevant provision permitting permanent acquisition are by way

of extinguishment under Section 5 (3) (a) and Section 15 (1). Under Section 5 (3) (a);

by means of direction from the Minister in two ways (Section 5 (3) (a) (i) (ii)):-

(i) Published in Gazette and one newspaper circulating in Sarawak; and

(ii) Exhibited at the notice board of the District Office of the affected area.

Extinguishment of such rights shall apply if the said land is required for public

purposes or for purpose of facilitating alienation (Section 5 (5)).

Additionally the District Office may through the assistance of the ketua kaum

verbally notify to anyone who might have a claim on the affected land.

6 Native Land – The natives of Sarawak under customary tenure hold this class of land. The Native Customary Rights (NCR) to land may be created by a native as stated under Section 5 (2) of the Sarawak Land Code (Cap. 81). As of 1st January 1958, native customary rights may be created in accordance with the native customary law of the community or communities concerned if a permit is obtained. This gives the natives the right to occupy the Native Communal Reserves. Native Communal Reserves is land reserved under native customary rights created in accordance to native customary law of community or communities (the Sarawak Land Code, Section 6). The land is still considered to be State land and the native community for whom it is reserved or any member thereof acquiring rights there in shall hold the same as a licensee from the Government.

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Section 5 (3) (b) states that the claimant must provide sufficient evidence within a

period mentioned in the directive gazette and published in a local newspaper. The

period stated in the gazette shall not be less than sixty days from date of

publication or exhibition. Any claim which fails to be filed within the stipulated

period, will not be entertained by the Superintendent.

Assessment of compensation payable shall be determined by the Majlis Mesyuarat

Kerajaan Negeri (Section 5 (6)).

However, if the claimants are unsatisfied with the Superintendent’s decision on the

following grounds (Section 5 (4) (a)):-

(i) Claimants claim has been rejected; (ii) The allocation of land over which such rights are to be exercised, is

inadequate or inequitable; or (iii) Amount or apportionment of compensation is inadequate, unfair or

unreasonable.

The claimant may make his complaint known within 21 days from the date upon

receiving the decision, in writing and addressed to the Superintendent requesting

for arbitration pursuant to section 212 of the Land Code. In the event that the

parties refer their matter to Arbitration, it will be the duty of Director,

Superintendent or other office acting under the Land Code to prepare and submit

to the Chief Judge a summary of the dispute, inclusive of details of offer made by

the Government and the estimated value of any land, and any such information

required by the Chief Judge (Section 212 (1)). The Chief Judge will then appoint a

person whose name appears in a list published in the Gazette by the Registrar of

the High Court as an arbitrator (Section 212 (2)).

The Arbitration Act 2005(A.A 2005) provides equal opportunity for both parties to

present their case (Section 20 A.A 2005). This include their choice of language to be

used in the arbitral proceedings (Section 24 (1) A.A 2005). Both parties are required

to agree on the procedure of the proceeding. If they are unable to come to an

agreement, the arbitration will be conducted in a manner appropriate to both

parties (Section 21 (1) and (2) A.A 2005). The tribunal is given the power to:-

(a) Determine the admissibility, relevance, materiality and weight of any evidence;

(b) Draw on its own knowledge and expertise; (c) Order the provision of further particulars in a statement of claim or

statement of defence; (d) Order the giving of security for costs; (e) Fix and amend time limits within which various steps in the arbitral

proceedings must be completed; (f) Order the discovery and production of documents or materials within the

possession or power of a party;

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(g) Order the interrogatories to be answered; (h) Order that any evidence be given on oath or affirmation; and (i) Make such other orders as the arbitral tribunal considers appropriate.

(Section 21 (3) A.A)

Upon receiving the arbitration notice, the Superintendent shall direct the

compensation to be deposited in the High Court pending outcome of such

arbitration proceedings (Section 5 (4) (b)).

Pursuant to Section 42 (1) of the Arbitration Act, any party may refer to the High

Court any question of law arising out of an award. The High Court will take into

consideration the disputed parties submission and its’ decision shall be final

(Section 43 A.A 2005).

Section 15 (1) of the Land Code stated that the affected land for acquisition shall

not be alienated or be used for public purpose until all native customary rights have

been surrendered or extinguished or compensation have been made.

The acquisition is formalized by a deed of surrender signed by the Superintendent

and the person whose rights are to be surrendered (Section 15 (2) (a)).

Before the signing of the deed, the Superintendent will post a notice at the District

Office and a place convenient for viewing. A copy will also been given to the

Headman. The purpose of the notice is to notify individuals who might have interest

on the affected land to file their objection within 21 days from the posting of the

notice (Section 15 (2) (b)). The objection should be submitted in writing to the

Superintendent. If there is an objection, the deed of surrender shall not be signed

by the parties until a lapse of 7 days after the Superintendent has notified the

objector of his decision (Section 15(d)). The Superintendent shall determine

whether the objector has any validity (Section 15 (c)). If the objector claim upheld

but refuse to surrender his native customary rights, the matter shall be referred to

the Minister to determine if the rights are to be terminated according to the Land

Code or otherwise (Section 15 (f)).

If the amount of compensation is not being disputed, but the ownership of the

acquired land is in question, both parties to the claim can refer to the Native Court.

Native Court

Under Section 1(2) of the Ordinance, the Native Courts Ordinance, 1992 is only

applicable to Natives of Sarawak.

Natives can file their claim in their respective jurisdiction and to be heard by

(Section 3):-

(a) District Native Court – Magistrate

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(b) Chief’s Superior Court – Pemanca or Temenggong (c) Chief’s Court – Penghulu (d) Headman’s Court – Tua kampong or Tuai rumah

The relevant section with regards to land compensation is provided under Section

5(3) (ii) which reads:-

“any claim for compensation to be paid under the Land Code [Cap. 81 (1958 Ed.)] for

termination of native customary rights over land;”

This would include termination under Section 5 (3) (a) of the Land Code.

Their dispute shall be heard in the first instance by a District Native Court (last

paragraph Section 5 (3) (a)). The District Native Court shall consist of a Magistrate

and two assessors (Section 4 (1) (a)) and the proceedings shall be heard in open

court (Section 33A). If any parties are not satisfied with the decision of the District

Native Court, they can appeal to the Resident’s Native Court in accordance to the

rules made under Section 29 (Section5 (3) (b)). Under Section 29, the Yang di-Pertua

Negeri may make such rules generally for carrying out the provisions of this

Ordinance.

8.2 ADB Policies and Procedures of Guidelines

The ADB Safeguard Policy Statement (2009) consolidates three existing safeguard

policies: involuntary resettlement (IR), indigenous peoples (IP), and environment.

The objectives of the IR policy are to (i) avoid involuntary resettlement, (ii) explore

alternatives to avoid, (iii) restore livelihoods and (iv) improve living standards of poor

and vulnerable households. The IR safeguard covers 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 (i) involuntary acquisition of land, or (ii) involuntary restriction on land use

or on access to legally designated park and protected forest area. It covers them

whether such losses and involuntary restriction are full or partial, permanent or

temporary.

The objectives of the IP policy is to design and implement projects in a way that

fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood

systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so

that they (i) receive culturally appropriate social and economic benefits, (ii) do not

suffer adverse impacts as a result of projects, and (iii) can participate actively in

projects that affect them. The Indigenous Peoples safeguards are triggered if a

project directly or indirectly affects the dignity, human rights, livelihood systems, or

culture of Indigenous Peoples or affects the territories or natural or cultural

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resources that Indigenous Peoples own, use, occupy, or claim as an ancestral domain

or asset. The term Indigenous Peoples is used in a generic sense to refer to a distinct,

vulnerable, social and cultural group possessing the following characteristics in

varying degrees: (i) self-identification as members of a distinct indigenous cultural

group and recognition of this identity by others; (ii) collective attachment to

geographically distinct habitats or ancestral territories in the project area and to the

natural resources in these habitats and territories; (iii) customary cultural, economic,

social, or political institutions that are separate from those of the dominant society

and culture; and (iv) a distinct language, often different from the official language of

the country or region. In considering these characteristics, national legislation,

customary law, and any international conventions to which the country is a party will

be taken into account. A group that has lost collective attachment to geographically

distinct habitats or ancestral territories in the project area because of forced

severance remains eligible for coverage under this policy.

ADB Policy on Gender and Development (2003) adopts gender mainstreaming as a

key strategy for promoting gender equity, and for ensuring that women participate

and that their needs are explicitly addressed in the decision-making process. For

projects that have the potential to have substantial gender impacts, a gender plan is

prepared to identify strategies to address gender concerns and the involvement of

women in the design, implementation and monitoring of the Project. The new

safeguard policy and requirements also reiterates the importance of including gender

issues in the preparation of safeguards documents at all stages to ensure that gender

concerns are incorporated, including gender-specific consultation and information

disclosure. This includes special attention to guarantee women’s assets, property,

and land-use rights and restoration/improvement of their living standards; and to

ensure that women will receive project benefits.

Other policies of the ADB that have bearing on resettlement planning and

implementation are the (i) Public Communications Policy (2011), and (ii)

Accountability Mechanism (2012).

8.3 Gaps between Sarawak Legal Framework and ADB’s Policy

There is generally a strong alignment between ADB’s Policy and the values and

customs that guides Sarawak Energy’s application of the Sarawak Legal framework.

Deviation from the ADB Policy is minor and procedural in nature. A summary of the

gaps analysis between Sarawak legal framework (and Sarawak Energy’s common

practice) and ADB’s IR Policy, including measures to address the differences, are

outlined in Table 5 and Table 6.

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Table 5: Comparison of National/Local Legal Framework with ADB’s Involuntary Resettlement Policy and Project

ADB’s Policy Principles on Involuntary Resettlement (2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

There is no formal requirement for early screening, however Sarawak Energy officers have deep and longstanding relationships in the communities which would identify impacts and risks, had they been present.

An initial SIA was carried out in 2009, and the subsequent SIA was conducted in 2011 for the preparation of draft REMDP (2011).

2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

The section 16 of Electricity Ordinance requires that: (2): Before entering on any land for the purpose specified in

subsection (1), the licensee shall give notice to the owner or occupier of that land, stating as fully and accurately as possible the nature and extent of the acts intended to be done and informing the owner or occupier of this right, under subsection (4), to object to the proposed intended acts.

(6): If an objection is lodged and is not withdrawn before the date fixed for its hearing, the Director of Lands and Surveys shall hold an inquiry, giving all parties an opportunity to be heard.

(7): Upon the conclusion of the inquiry or upon receipt of those recommendations, the Director of Lands and Surveys may, either unconditionally or subject to such terms, conditions and stipulations as he thinks fit, authorize or prohibit any of the acts mentioned in that notice.

Meaningful consultations have been carried out with stakeholders including affected peoples. There are no vulnerable groups affected by the project. A grievance redress mechanism to receive and facilitate resolution of the affected peoples’ concerns has been established. There is no host community, as no physical relocation is required for the project.

3. Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access

The subsection (1) of section 16 of Electricity Ordinance requires that:

whenever it is necessary so to do for the purpose of installing any system of distribution of energy under this Ordinance, a licensee may lay, place or carry on, under or over any land, other than State land, such supply lines,

As the loss of land is not expected to undermine livelihoods, land and other assets (crops) will be compensated by cash at replacement cost.

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ADB’s Policy Principles on Involuntary Resettlement (2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

and may erect in or upon any land, other than State land, such posts and other apparatus as may be necessary or proper for the purposes of the licensed installation, and may take such other action as may be necessary to render that installation safe and efficient, paying full compensation to all persons interested for any disturbance, damage or disability that may be caused by it; and such compensation may include an annual payment for land used for the purpose of the posts or other apparatus.

The section 21 of Electricity Ordinance requires that: The amount of compensation payable under this Ordinance may, in default of agreement, be claimed and determined by civil action in a court of appropriate jurisdiction.

4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation

land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities;

(ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and

(iii) civic infrastructure and community services, as required.

Crops will be compensated by cash at replacement cost. No structure is expected to be affected, and there will be no physical relocation for the project.

5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

Sarawak Energy and State Government officers have deep and longstanding relationships in the affected communities which would identify vulnerable groups, had they been present.

No gap-filling measure required, because there are no vulnerable groups affected by the project.

6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

No provision for negotiated settlement. No gap-filling measure required, because negotiated settlement is not anticipated for the project.

7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for

The subsection (3) of section 5 of the Sarawak Land Code requires that:

Cash compensation at replacement cost will be

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ADB’s Policy Principles on Involuntary Resettlement (2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

resettlement assistance and compensation for loss of nonland assets.

Any native customary rights may be extinguished by direction issued by the Minister which shall be ;-

a) Published in the Gazette and one newspaper circulating in Sarawak

b) Exhibited at the notice board of the District Office for the area where the land, over which such rights are to be extinguished is situated

and on the date specified in the direction, the native customary rights shall be extinguished and the land held under such rights shall revert to the Government: Provided that where such rights are extinguished in pursuance of this section compensation shall be paid to any person who can establish his claims to such rights in accordance with paragraphs (b) and (c); or other land over which such rights may be exercised may be made available to him with or without the payment of additional compensation whether for disturbance, or for the costs of removal, or otherwise.

provided both for title land and non-title land (Native Customary Land) for the project.

8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

There is no provision for preparation of resettlement plan, nor was any such plan required for this project.

Draft REMDP was prepared by Sarawak Energy in 2011, and this document is the updated version of the draft REMDP.

9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

There is no provision for disclosure of resettlement plan. PIB written in Bahasa Malaysia, the language spoken by the affected peoples was prepared by Sarawak Energy and distributed to affected peoples in July 2012.

10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full

There is no special provision to conceive and execute involuntary resettlement as part of a development project.

Sarawak Energy has no plan to implement involuntary

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ADB’s Policy Principles on Involuntary Resettlement (2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

resettlement as a stand-alone operation. The cost for land acquisition is secured by Sarawak Energy as a part of project cost.

11. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

Consistent with the general practice for compensation in cases where land is disturbed for Government projects, there is no special provision which specifies the timing of compensation payment regarding the timing of construction work. Sarawak Energy practice is to pay compensation for land to the owners only after the completion of the project activity, or after DMS.

For crops, compensation will be (and has been) paid in advance of economic displacement. For land (for towers), foundation has already been installed for some towers although compensation for land has not been paid to affected peoples. The compensation for land will be paid to the affected peoples upon the completion of the survey.

12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

There is no provision for monitoring and assessment of resettlement.

Internal monitoring of REMDP implementation will be conducted and semi-annual reports will be prepared starting from August 2014. In addition, quarterly external monitoring will be conducted starting from September 2014. The monitoring reports will be submitted to ADB for web posting.

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Table 6: Comparison of National/Local Legal Framework with ADB’s Indigenous Peoples Policy and Project

ADB’s Policy Principles on Indigenous People(2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

1. Screen early on to determine (i) whether Indigenous Peoples are present in, or have collective attachment to, the project area; and (ii) whether project impacts on Indigenous Peoples are likely.

There is no formal requirement for early screening, social impact assessment, however Sarawak Energy officers have deep and longstanding relationships in the communities which would identify impacts and risks, had they been present.

An initial SIA was carried out in 2009, and the subsequent SIA was conducted in 2011 for the preparation of draft REMDP (2011). 2. Undertake a culturally appropriate and gender-sensitive

social impact assessment or use similar methods to assess potential project impacts, both positive and adverse, on Indigenous Peoples. Give full consideration to options the affected Indigenous Peoples prefer in relation to the provision of project benefits and the design of mitigation measures. Identify social and economic benefits for affected Indigenous Peoples that are culturally appropriate and gender and intergenerationally inclusive and develop measures to avoid, minimize, and/or mitigate adverse impacts on Indigenous Peoples.

3. Undertake meaningful consultations with affected Indigenous Peoples communities and concerned Indigenous Peoples organizations to solicit their participation (i) in designing, implementing, and monitoring measures to avoid adverse impacts or, when avoidance is not possible, to minimize, mitigate, or compensate for such effects; and (ii) in tailoring project benefits for affected Indigenous Peoples communities in a culturally appropriate manner. To enhance Indigenous Peoples’ active participation, projects affecting them will provide for culturally appropriate and gender inclusive capacity development. Establish a culturally appropriate and gender inclusive grievance mechanism to receive and facilitate resolution of the Indigenous Peoples’

Sarawak Laws do not discuss the need for meaningful consultation, however Sarawak Energy officers have deep and longstanding relationships in the communities which would identify impacts and risks, had they been present. The subsection (3) of section 5 of the Sarawak Land Code requires that:

(b) Any person who desires to make any claim for compensation must submit his claim with evidence in support thereof to the Superintendent in a form to be prescribed by him, within such period as may be stipulated in the direction issued by the Minister under paragraph (a), provided that the period so stipulated shall not be less than sixty days from the date of publication or exhibition thereof.

Meaningful consultations have been carried out with stakeholders including affected peoples. There are no vulnerable groups affected by the project. A grievance redress mechanism to receive and facilitate resolution of the affected peoples’ concerns has been established.

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ADB’s Policy Principles on Indigenous People(2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

concerns. (c) No claim for compensation for extinguishment of native customary rights shall be entertained by the Superintendent unless such claim is submitted within the period stipulated in paragraph(b)

4. Ascertain the consent of affected Indigenous Peoples communities to the following project activities: (i) commercial development of the cultural resources and knowledge of Indigenous Peoples; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of Indigenous Peoples. For the purposes of policy application, the consent of affected Indigenous Peoples communities refers to a collective expression by the affected Indigenous Peoples communities, through individuals and/or their recognized representatives, of broad community support for such project activities. Broad community support may exist even if some individuals or groups object to the project activities.

Under the project, there is no (i) commercial development of the cultural resources and knowledge of Indigenous Peoples; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of Indigenous Peoples.

5. Avoid, to the maximum extent possible, any restricted access to and physical displacement from protected areas and natural resources. Where avoidance is not possible, ensure that the affected Indigenous Peoples communities participate in the design, implementation, and monitoring and evaluation of management arrangements for such areas and natural resources and that their benefits are equitably shared.

Under the project, there is no restricted access to and physical displacement from protected areas and natural resources.

6. Prepare an Indigenous Peoples plan (IPP) that is based on the social impact assessment with the assistance of qualified and experienced experts and that draw on

There is no provision for preparation of IPP, nor was any such plan required for this project.

Draft REMDP was prepared by Sarawak Energy in 2011, and this document is the updated

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ADB’s Policy Principles on Indigenous People(2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

indigenous knowledge and participation by the affected Indigenous Peoples communities. The IPP includes a framework for continued consultation with the affected Indigenous Peoples communities during project implementation; specifies measures to ensure that Indigenous Peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures.

version of the draft REMDP.

7. Disclose a draft IPP, including documentation of the consultation process and the results of the social impact assessment in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected Indigenous Peoples communities and other stakeholders. The final IPP and its updates will also be disclosed to the affected Indigenous Peoples communities and other stakeholders.

There is no provision for disclosure of IPP. PIB written in Bahasa Malaysia, the language spoken by the affected peoples was prepared by Sarawak Energy and distributed to affected peoples in July 2012.

8. Prepare an action plan for legal recognition of customary rights to lands and territories or ancestral domains when the project involves (i) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples have traditionally owned or customarily used or occupied, or (ii) involuntary acquisition of such lands.

The subsection (1) of section 5 of the Sarawak Land Code requires that:

As from the 1st day of January, 1958, native customary rights may be created in accordance with the native customary law of the community or communities concerned by any of the methods specified in subsection(2), if a permit is obtained under section 10, upon Interior Area Land. Save as aforesaid, but without prejudice to the provisions hereinafter contained in respect of Native Communal Reserves and rights of way, no recognition shall be given to any native customary rights over any land in Sarawak created after the 1st day

Native land will be acquired following Sarawak Land Code.

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ADB’s Policy Principles on Indigenous People(2009)

Sarawak Legal Framework (and Sarawak Energy’s common practice) Gap filling Measures

of January,1958, and if the land is State land any person in occupation thereof shall be deemed to be in unlawful occupation of State land and section 209 shall apply thereto.

9. Monitor implementation of the IPP using qualified and experienced experts; adopt a participatory monitoring approach, wherever possible; and assess whether the IPP’s objective and desired outcome have been achieved, taking into account the baseline conditions and the results of IPP monitoring. Disclose monitoring reports.

There is no provision for monitoring and assessment. Internal monitoring of REMDP implementation will be conducted and semi-annual reports will be prepared starting from August 2014. In addition, quarterly external monitoring will be conducted starting from September 2014. The monitoring reports will be submitted to ADB for web posting.

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The project is being implemented in accordance with Section 16 of the Electricity

Ordinance (Revised 2002) and Sarawak Land Code, which provides the legal

framework for construction of transmission line along Sarawak Government’s

approved transmission line route. Sarawak Energy’s proposed route to the Sarawak

Government was also planned to avoid or minimise disturbance to the local

communities as well as properties.

Section 16 of the Electricity Ordinance stresses the need for well-informed land

owners through Wayleave Notices, the first batch of notices were delivered from 27th

February 2012. “Notice of intention to enter and carry out work on land (pursuant to

Section 16 of the Electricity Ordinance (revised 2002) Cap. 50)” was announced in

local newspaper on 4 September 2012 and 3 September 2012 for Title Land

(Alienated Land) .

The main policy gap between national/local legal framework and ADB’s policy is the

timing of compensation payment. While ADB’s policy states “Pay compensation and

provide other resettlement entitlements before physical or economic displacement”,

any law in Malaysia or Sarawak does not specify the timing of compensation payment

regarding the timing of construction work, and the payment of land acquisition is the

final process to legally declare surrender of land ownership.

Sarawak Energy practice is to pay the landowner for land acquisition only after the

completion of the project construction work (stringing of transmission line), because

even after the completion of tower base and other structure, Sarawak Energy still

anticipates changes due to unforeseen circumstances. Upon stringing of transmission

line, LSD engages a survey team for detailed survey of established towers’ exact

locations, their actual areas, and the owners of the lands - so as to ensure the

accuracy of compensation. The survey team is dispatched to undertake this on a

whole of project - rather than a tower by tower basis for the sake of efficiency. Based

on the result of the detailed survey, the compensation budget is calculated, and

budget for Native Land is transferred from Sarawak Energy to LSD. The compensation

is paid by Sarawak Energy directly for Title Land, and through LSD for Native Land,

because legal identification/determination of the ownership authorized by LSD is

requisite for the compensation of Native Land. Both for Title Land and Native Land,

LSD will not formally transfer the land ownership from affected peoples to Sarawak

Energy until each affected people receive full compensation for their land.

As a policy, Sarawak Energy plans to align its safeguard practices to prevailing

international standards, and with that intention, for this project, Sarawak Energy will

recruit and appoint an independent survey team for the detailed survey in August

2014, in order to identify the information of the land for tower bases and pay the

compensation for Title Land prior to the completion of the project construction work,

although compensation for Native Land can be paid only after the detailed survey

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conducted by LSD after the completion of the construction work which is scheduled

in March 2015. Although general principles of compensation will argue for a revision

of rates (re-examination of replacement cost during actual payment) where there is

significant time lag between the date of compensation rate in an agreement and the

date of actual payment, such a re-examination is not required in this instance as the

rate of RM 80,000/ha is well above the commercially advertised sale price (a proxy

for market price) of similar land in the vicinity of the project area, and Sarawak

Energy is making additional efforts to fast track payments by hiring independent

surveyors rather than waiting for LSD's survey that would have happened after the

project is complete.

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9 ENTITLEMENTS

The cut-off-date of eligibility refers to the date prior to which the occupation or use

of the project area (i.e., area within the COI) makes residents/users of the same

eligible to be categorized as affected peoples and be eligible, regardless of tenure

status. In this project, the cut-off date is 3 September 2012 on which “Notice of

intention to enter and carry out work on land (pursuant to Section 16 of the

Electricity Ordinance (revised 2002) Cap. 50)” was announced in local newspaper.

Entitlement matrix outlined in Table 7 shows the type of losses, eligible persons,

entitlements, and implementation issues.

Land for tower bases will be compensated at replacement cost, because they will be

permanently acquired. On the other hand, there is no compensation for land under

ROW, because the landowners can continue to use the land even after the

installment of transmission line. The assets (crops) on the land both for tower bases

and ROW will be compensated at replacement cost.

No houses or other significant structures will need to be relocated, and the overall

impact will be limited in areas of agricultural cultivation and secondary growth that

has already been affected by agriculture.

There are no vulnerable affected households (those below the poverty line7, the

landless, the elderly, female headed households, women and children, and those

without legal title to land) or severely affected households who need special

assistance or particular attention.

7 Poverty line income (RM/month) as of 2012 is indicated in the table below.

<http://www.adbi.org/files/2013.05.08.cpp.sess4.1.poverty.inequality.malaysia.pdf#search='sarawak+poverty+line+2013'>

Region household Per capita

Pen. Malaysia 830 210

Urban 840 220

Rural 790 190

Sarawak 920 230

Urban 960 230

Rural 870 220

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Table 7: Entitlement Matrix of Compensation

Type of Losses Eligible Persons Entitlements Implementation Issues Remarks

Permanent Acquisition of Land

(for Towers)

Legal owners or traditional/Native title holders.

Land will be compensated in the form of cash compensation at replacement cost based on current market value of land which is equivalent to the original one with similar type and category, and without deduction for taxes and administrative cost.

Technical and financial assistance will be provided for land ownership document updating.

For traditional title land /customary (NCR) land, affected peoples will need to demonstrate a legal claim to the land in accordance with the Sarawak Land Code.

Compensation rate is RM 80,000/ha (about RM 1,800/tower) which is much higher than the LSD published compensation rate for title land. Such higher rate has taken into account the constraint regarding formal procedure where time lag may happen between the date of compensation rate in an agreement and the date of actual payment.

For compensation process of title land and native customary land, refer to Chapter 8.1.2 and Chapter 8.1.3.

There is no significant loss (losses of 10% or more of their total productive land, assets and/or income sources due to the project) identified for this Project.

Crops and trees

(for Towers and Transmission Line)

Owners of crops and trees, regardless of tenure status, including sharecroppers/NCR land users.

Cash compensation at replacement cost which is equivalent to the original crops/trees by age, type, and productive value.

In addition to the cash

Affected peoples will retain possession of salvageable crops and trees.

Final inventory of crops/trees in the ROW will

Crop compensation rates are set for 75 kinds of crops respectively for 3 mature stages.

They are basically based on LSD rates, however, Sarawak Energy

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Type of Losses Eligible Persons Entitlements Implementation Issues Remarks

compensation described above, the affected peoples will be provided with opportunity to harvest the crops prior to the removal of crops/trees.

be conducted prior to cable stringing.

pays an ex-gratia amount for all kinds of crops to commensurate with the present commercial value of the crops.

Community Facilities, Public infrastructures

Community, local government, organizations

To be restored and relocated in a better condition than pre-project condition and culturally appropriate.

Restoration and relocation etc. is to be confirmed by the Internal Monitoring reports.

There is no loss of non-land assets other than crops and trees.

The route selection ensured that residential houses, other structures, sensitive areas are avoided.

Temporary loss of land during

Construction

To be determined during final DMS and during construction.

The payment for land damages is carried out progressively.

Affected peoples whose land is taken temporarily due to civil work under the Project will be compensated at replacement cost based on the losses including income losses from land and non-land assets.

Restoration of land will be done immediately after use.

Affected peoples will sign a temporary occupation contract specifying: (i) period of occupancy; (ii) formula for compensation calculation of the losses; (iii) compensation payment, and (iv) land protection and rehabilitation measures.

The route selection ensured that residential houses, other structures, sensitive areas are avoided.

Sarawak Energy is responsible for the compensation of Temporary Loss.

Impacts on Non-Land Assets During

Construction (crops, trees, houses,

structures)

Owner to be identified during construction regardless of tenure status, including sharecroppers / NCR land users.

Compensation at replacement cost based on the losses/damages.

For crops/trees, the affected peoples will be provided with opportunity to harvest them prior to the removal.

Affected peoples will retain possession of salvageable crops and trees.

Sarawak Energy is responsible for the compensation of the loss.

The compensation rate for crops/trees is identical to the ones for towers and transmission line.

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10 BUDGET FOR LAND ACQUISITION

10.1.1 Compensation rate

The principles and methodologies used for determining compensation rates are based

on LSD rate and Sarawak Energy’s estimates of replacement cost, informed by

consultation with relevant government authorities including the Ministry of Agriculture.

(i) Permanent Acquisition of Land

The standard rate of land compensation published by LSD for Title Land as well as

Native Land is RM 1,875/ha, where the advertised agricultural land prices in and

around the project area vary between RM 10,000/ha to RM 60,000/ha.

Compensation rate of RM 80,000/ha (about RM 1,800/tower), which is higher

than the current land market rate in the project area will be applied both for Title

Land as well as native land. Any transaction costs such as administrative charges,

taxes and registration costs will be borne by Sarawak Energy.

(ii) Crops and Trees

Sarawak government (Minister of Resource Planning) publishes periodically the

compensation rate for crops affected by the government projects. The

government decides on the rate of compensation taking note of the prevailing

economic situation, labour costs, materials and the conditions of the specific crops

and the market price for crops. The decision also involves consultation amongst

various agencies such as the Department of Agriculture, Malaysian Palm Oil Board,

Malaysian Rubber Board, Malaysian Cocoa Board, and the Federal Agricultural

Marketing Authority.

The affected crops are basically compensated in accordance with the crops

compensation rates provided by the Sarawak Government, however, if the rate of

the Sarawak Government is identified to be less than the replacement cost,

Sarawak Energy pays an ex-gratia amount to commensurate with the present

commercial value of the crops according to the kind and age of the crops.

Compensation rates for 75 kinds of crops respectively for 3 mature stages ((i)

bearing/matured/tappable, (ii) non-bearing/non-matured/untappable, and (iii)

seedling) were finalized in consultation with stakeholders including affected

communities and Ministry of Agriculture, taking into consideration the production

value of each kind of crops. For example, the compensation rate for durian is RM

500 for mature stage (i), RM 250 for (stage ii) and RM 75 for (stage iii), while the

government rate is RM 81 for (stage i), RM 26 for (stage ii) and RM 7.8 for (stage

iii) as of 2013.

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(iii) Temporary Impact during Construction

Sarawak Energy will also be compensating the land owners and claimants for the

disturbances, liabilities and damages to the land based on the current market

value of the land and non-land asset.

10.1.2 Budget Amount

The total budget for compensation is RM 9,162,000, and RM 5,959,664 has already

been paid to affected peoples as crop compensation for “tall crops” as of May 2014.

Table 8 shows the detailed estimated budget amount for compensation and

compensation amount already paid to affected peoples.

Administrative cost for land acquisition including internal monitoring activity is

included in Sarawak Energy’s usual personnel expenses, because Sarawak Energy

staff will administer the implementation. Budget for quarterly external monitoring

(at least for 3 times starting from September 2014 until the completion of

resettlement activities after the completion of construction works) will be secured

by SEB.

Table 8: Estimated Budget Amount for Compensation and Compensation

Amount Paid as of May 2014

Item Estimated Budget

Amount (RM) Compensation Paid

as of May 2014 (RM)

Permanent acquisition of Land (for towers) 262,800* 0

Crops and Trees 6,739,200** 5,959,664

Community Facilities, Public infrastructures 0 0

Temporary loss of land during construction 2,160,000***

0

Temporary impacts on non-land assets during construction

0

Total 9,162,000 5,959,664 TL: transmission Line

* Budget amount for permanent land acquisition is estimated on a unit rate of RM

80,000/ha which is equivalent to RM 1,800/tower (15x15=225 m2 = 0.0225 ha) on

average (RM 80,000/ha x 3.285 ha = RM 262,800).

** Budget amount for crop compensation is estimated on a unit rate of RM

144,000/km (RM 144,000/km x 46.8 km = RM 6,739,200).

*** Budget amount for temporary loss is calculated on the estimated total length of

approximately 48 km and 5 m width of temporary access roads constructed for civil

works, although the actual length and locality of each access road will be known

and decided only during the construction. Unit rate of RM 45,000/km is utilized for

a rough estimation (RM 45,000/km x 48 km = RM 200). The construction of

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temporary access road involves clearing and trenching which may cause damages to

the land.

Table 9: Crop Compensation already paid

Crop Compensation Amount (RM)

Amount paid (SCF) 1,286,207.30

Amount paid (X-Gratia) 4,673,456.20

Total Amount Paid Out 5,959,663.50

SCF = Schedule of Cultivation Form (refer to Photo 6) based on LSD’s rate X-Gratia = The difference between LSD’s rate and the project’s compensation rate (based on replacement cost)

10.1.3 Source of Budget and flow of funds

The compensation fund is budgeted in the overall Project fund which has been

approved by Sarawak Energy Board of Directors.

Budget for Native land compensation will be transferred from Sarawak Energy to

LSD, and LSD will pay the compensation to affected peoples/communities. On the

other hand, the compensation for Title land, crops and trees, community facilities,

public infrastructures, temporary loss of land during construction, impacts on non-

land assets during construction (crops, trees, houses and structures) will be paid

directly from Sarawak Energy to affected peoples.

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11 INSTITUTIONAL ARRANGEMENTS

The roles and responsibilities of related parties in taking the initiatives in addressing

the social impacts of the proposed Project are listed below:

Table 10: Institutional Arrangement

Department Roles

Land and Survey Department (LSD)

Government authority responsible for land matters, the administration of land tenure and disposition of the land within the Permit boundary.

Assisting Sarawak Energy in conducting public consultation and public disclosure.

Participating in dialogue and providing information required by the affected communities.

Carrying out survey of the affected lands to identify affected households and the rate of compensations.

Informing the affected households on the compensations.

Negotiation with aggrieved affected peoples who is not satisfied with the compensation offered.

Dealing with aggrieved persons who have objection to ownership of land.

Administering compensation for permanent land acquisition of Native Land.

District Office

Local authority responsible for administration and communication with land owners.

Providing the leadership in organizing dialogue sessions between the affected communities, Village Security and Development Committee (VSDC), Sarawak Energy and LSD.

Monitoring the works of LSD and assist the agency in the event of dispute such as land dispute.

Sarawak Energy Wayleave Department

Assisting LSD in carrying out survey works by providing details of the alignment plan for the transmission lines and engineering details of installations.

Liaise with land owners and LSD and other stakeholders on land matters and other wayleave issues.

Channel for grievances and other related wayleave issues.

Carrying out survey of the affected lands to identify affected households, loss of assets, and the rate of compensations.

Administering compensation for Title Land, crops and trees, community facilities, public infrastructures, temporary loss of land during construction, impacts on non-land assets during construction.

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Department Roles

Sarawak Energy EIA Division

To ensure the Project is carried out in compliance with State’s environmental legislative requirement.

Sarawak Energy Project Execution Team

Conduct public consultation and public disclosure.

Participating in dialogue and providing information required by the affected communities.

Preparing budget for the compensation and survey works.

Conduct monitoring of REMDP implementation and submit the monitoring report semiannually to ADB for disclosure.

Ensure the project implementation and execution is within budget, timeline, quality and within specification.

To comply with all health, safety and environment requirements.

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12 IMPLEMENTATION SCHEDULE

After the draft REMDP was prepared by Sarawak Energy and disclosed on ADB’s

website in July 2011, DMS was conducted in May and Jun 2012, followed by

consultation/negotiation and finalization of compensation rate. Crop compensation

has been handled since July 2012 by Sarawak Energy based on its own schedule, and

it can be done progressively during construction stage. The appointed contractor

started work in March 2013, with land clearing for access road and ROW.

Compensation for Title Land and Native Land is expected to be paid by the end of

August 2014 and in March 2015 respectively. Civil works is planned to be completed

by March 2015.

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Table 11: Schedule of REMDP

Activity Responsibility 2012 2013 2014 2015

M J J A S O N D J F M-D J F M A M J J A S O N D J F M

i. Route and design finalization Sarawak Energy

ii. Gathering DMS / New socio economic data

Sarawak Energy

iii. Consultation with affected peoples

Sarawak Energy

iv. Preparation/distribution of PIB Sarawak Energy

v. Consultation/negotiation on compensation with affected peoples

Sarawak Energy

vi. Finalization of compensation rates

Sarawak Energy

vii. Compensation payment Sarawak Energy

viii. Internal Monitoring Sarawak Energy

ix. External Monitoring External Experts

x. Acquisition of property (including land)

Sarawak Energy

xi. Civil works Sarawak Energy

xii. Rehabilitation of temporarily occupied lands

Sarawak Energy

AP: Affected Peoples, DMS: Detailed Measurement Survey, PIB: project information booklet

Note: Easement clearing is part and parcel of Civil Work

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14 MONITORING AND REPORTING

14.1 Internal Monitoring

Although the progress of land acquisition has been monitored and comprehensive

monthly internal reports of the project have been prepared by Sarawak Energy since

the commencement of the civil work in March 2013, no specific monitoring report of

REMDP implementation has been prepared so far. However, following the policy

principle under ADB Safeguard Policy Statement (2009), internal monitoring of

REMDP implementation will be conducted and semi-annual reports will be prepared

starting from August 2014 until the completion of resettlement activities after the

completion of construction works. Internal Monitoring will be undertaken by Sarawak

Energy project execution team with the support of Sarawak Energy Wayleave

Department. The team will collect and collate information from affected

peoples/communities and other implementing agencies (especially LSD) on the

progress of implementation of REMDP covering the details as follows:

(i) Compensation and/or other entitlements are provided as per REMDP, with

no discrimination according to gender, vulnerability, or any other factor;

(ii) Public information, public consultation and grievance redress procedures are

followed as described in REMDP;

(iii) The transition between resettlement and commencement of civil works is

smooth.

Table 12 shows the indicators of internal monitoring.

Table 12: Internal Monitoring indicators

Progress in REMDP Implementation

Permanent land acquisition o Area of land acquired o Amount of compensation paid o Number of affected peoples provided full compensation

Acquisition of trees and crops o Amount of compensation paid (tall crops / low crops /

danger trees) o Number of affected peoples provided full compensation

Temporary impacts during civil works (quantities, number pf affected peoples, type, etc.) and status of compensation and restoration

Actual/planned funds disbursement schedule

Issues affecting timely land clearance o Grievances (including non-agreement to compensation) –

number of grievances resolved/number of grievances

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received o Unresolved encumbrances o Funding constraints o Other

Disclosure, Consultation & Participation

Information disclosure by location/date

Public consultation meetings by location/date with number of participants

Documentation of issues raised by public consultation participants and how these have been/will be addressed by the project team

Operation of Grievance Redress Mechanism

Number of new grievance cases received/resolved by date

Summary of type of grievance issue

Special Issues Resolution of issues raised in previous report

Resource/funding constraints

Changes in scope of impacts

The monitoring reports written in Bahasa Malaysia will be made available to the

affected peoples by Sarawak Energy at Bau District Office which is widely known as

the place to go for government information and can be easily accessed by all the

affected peoples, and the report translated into English will be submitted to ADB for

web posting.

14.2 External Monitoring

There is no provision for external monitoring under Sarawak legal framework.

However, considering the fact that the compensation for permanent land acquisition

is not provided before physical or economic displacement, external monitoring will

be conducted to provide an independent verification of full and scheduled payment

of compensation.

The general objective of the external monitoring is to (i) provide an independent

verification of Sarawak Energy’s internal monitoring information to assess whether

REMDP’s objectives have been met, and (ii) advise Sarawak Energy on safeguard

compliance issues identified during monitoring. If significant involuntary resettlement

compliance issues are identified, it is the responsibility of Sarawak Energy to prepare

a corrective action plan to address them. Sarawak Energy will submit the corrective

action plan to ADB for review.

Sarawak Energy will engage qualified and experienced external experts to verify the

monitoring information. External experts do not substitute for the internal

monitoring. The experts should be qualified professionals with relevant experience in

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similar activities who are not involved in day-to-day project implementation or

supervision.

The external monitoring activities will be conducted quarterly commencing in

September 2014 until all the compensation (both for permanent land acquisition and

other losses) is concluded after the completion of construction works.

The following indicators will be monitored and verified by the external monitoring

experts.

(i) All the affected peoples are entitled to compensation in accordance with the

policy in this REMDP irrespective of their tenure status;

(ii) Compensation is fully paid as scheduled;

(iii) Affected peoples receive PIB and compensation receipt in writing;

(iv) Sarawak Energy Public Awareness Programme (PAP) is conducted accordingly;

(v) The grievance redress mechanism operates in accordance with this REMDP, and

documentation of grievances received and actions taken are maintained

properly.

Verification will be assessed through random checking of at least 10% of affected

peoples at field level to assess whether REMDP objectives have generally been met.

The external experts will prepare an external monitoring report which describes (i)

whether the land acquisition has been successfully implemented in accordance with

this REMDP, (ii) any outstanding actions that are required to bring the resettlement

activities in line with this REMDP and ADB Safeguard Policy Statement (2009), (iii)

further mitigation measures needed to meet the needs of any displaced person or

families judged and/or perceiving themselves to be worse off as a result of the

project, and (iv) timetable and budget requirements for any supplementary

mitigation measures for this REMDP, (v) detailed process of compliance monitoring

and the final signing off for these displaced persons, and (vi) any lessons learned that

might be useful for future activities.

The reports will be submitted to Sarawak Energy quarterly starting from September

2014. Upon receipt, Sarawak Energy will review the report, translate the report into

Bahasa Malaysia, and disclose it at Bau District Office. The monitoring report and

additional corrective action plan (if any) will be submitted to ADB and disclosed on

ADB website.

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15 CONCLUSION AND FOLLOW-UP CORRECTIVE ACTION

Sarawak Energy is obliged to abide with state ordinance (the Electricity Ordinance

and the Sarawak Land Code) for acquisition of land for power supply project that

involves public interest.

Provisions for Sarawak Energy to work and acquire land under the Electricity

Ordinance and the Sarawak Land Code are complemented with conditions ensuring

landowner will be informed and fairly compensated and in the event of dispute,

channel to appeal is accessible.

This updated REMDP and compliance audit report confirms that the project is

categorized as “B” both for involuntary resettlement and indigenous peoples under

ADB Safeguard Policy Statement (2009).

No expropriation or compulsory acquisition is triggered. The compensation price for

land and assets (crops) is equivalent to or higher than replacement cost based on fair

value market price.

Sarawak Energy has been implementing land acquisition since July 2012, and started

civil works in March 2013. As of April 2014, soil probe test has been completed for all

the 144 towers to be constructed under this project, 96 foundations have been

installed, and 45 towers have been erected. At the same time, 94.4% of access road

construction has been completed.

To date, from an early stage of the project, crop compensation of RM 5,959,663.50

has been paid to affected peoples for “tall crops”. This compensation amount, which

is more than 65% of the total budgeted amount for the compensation and about 88%

of the compensation budget for crops and trees, is significantly greater as compared

to payment for land ownership transfer and other loss of assets (crops). On the other

hand, any of compensation for land, “low crops”, “danger trees”, and land damages

and impacts on non-land assets during construction has not been paid yet.

Although Sarawak Energy has not got an agreement of land acquisition from 4 Native

Land owners (communities), Sarawak Energy have actively reached out to the land

owners to reduce or solve the grievances received. Provision of the Electricity

Ordinance allows Sarawak Energy to work on the land (including building the tower)

even without agreement of affected peoples, however, Sarawak Energy will continue

to negotiate with the aggrieved owners to reach an agreement.

Thus, the measures stipulated in the REMDP have been acceptably implemented,

although some gaps between local legal framework or Sarawak Energy’s practice and

ADB’s Safeguard Policy Statement (2009) were recognized such as (i) timing of

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compensation payment and (ii) monitoring and its reporting. Apart from these,

overall process of the REMDP implementation can be judged as satisfactory.

(i) Timing of compensation payment

While ADB’s policy states “Pay compensation and provide other resettlement

entitlements before physical or economic displacement”, any law in Malaysia or

Sarawak does not specify the timing of compensation payment in relation to the

timing of construction work.

Compensation for Permanent Land Acquisition

Sarawak Energy practice is to pay the landowner for land acquisition only after

the completion of the project construction work (stringing of transmission line),

because even after the completion of tower base and other structure, Sarawak

Energy still anticipates changes due to unforeseen circumstances. Upon stringing

of transmission line, LSD engages a survey team for detailed survey of the

affected land (such as established towers’ exact locations, their actual areas, and

the owners of the lands) so as to ensure the accuracy of compensation. The

survey team is dispatched to undertake this on a whole of project - rather than a

tower by tower basis for the sake of efficiency. Based on the result of the

detailed survey, the compensation budget is calculated, and budget for Native

Land is transferred from Sarawak Energy to LSD. The compensation is paid by

Sarawak Energy directly for Title Land, and through LSD for Native Land, because

legal identification/determination of the ownership authorized by LSD is

requisite for the compensation of Native Land. Both for Title Land and Native

Land, LSD will not formally transfer the land ownership from affected peoples to

Sarawak Energy until each affected people receive full compensation for their

land.

This is a common practice adopted for land acquisition for public purpose in

Sarawak. LSD, a government authority, is involved in the process of

compensation disbursement for Native Land, and the land title will not be

transferred from affected peoples to Sarawak Energy until the compensation is

paid. All the affected peoples are notified of this payment schedule from early

stage at consultation meetings and through PIB, and there are no affected

peoples who disagree with or show concern on this schedule.

As a policy, Sarawak Energy plans to align its safeguard practices to prevailing

international standards, and with that intention, for this project, Sarawak Energy

will recruit and appoint an independent survey team for the detailed survey in

July 2014, in order to identify the information of the land for tower bases and

pay the compensation for Title Land prior to the completion of the project

construction work (by the end of Aug 2014), although compensation for Native

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Land can be paid only after the detailed survey conducted by LSD after the

completion of the construction work which is scheduled in March 2015. Although

general principles of compensation will argue for a revision of rates (re-

examination of replacement cost during actual payment) where there is

significant time lag between the date of compensation rate in an agreement and

the date of actual payment, such a re-examination is not required in this instance

as the rate of RM 80,000/ha is well above the commercially advertised sale price

(a proxy for market price) of similar land in the vicinity of the project area, and

Sarawak Energy is making additional efforts to fast track payments by hiring

independent surveyors rather than waiting for LSD's survey that would have

happened after the project is complete.

Other Compensation

Compensation for temporary loss of land and other impacts on non-land assets

(mainly “low crops” and “danger trees”) during construction is usually paid on an

ongoing basis as the physical work progresses. However, none of the

compensation has been paid to the affected peoples, because the payment is

contingent upon the identification of and communication with the relevant

land/asset owners, who are not always readily available for such communication.

Sarawak Energy will expedite the communication and pay the compensation

immediately irrespective of the land being a Title Land or Native Land. All the

compensation for loss already identified as of June 2014 will be paid by the end

of July 2014, and the others will be paid on an ongoing basis but immediately

(within one month) after the actual damage/removal.

External Monitoring

Although there is no provision of monitoring under Sarawak legal framework,

considering the fact that some compensation is not provided before physical or

economic displacement, external monitoring will be conducted by external

experts hired by Sarawak Energy, to provide an independent verification of full

and scheduled payment of compensation. The monitoring activities will be

conducted quarterly commencing in September 2014 until all the compensation

(both for permanent land acquisition and other losses) is concluded after the

completion of construction works. In case significant compliance issues are

identified, Sarawak Energy is responsible for preparing a corrective action plan to

address them.

These additional measures will reduce the gap between Sarawak Energy’s practice

and ADB policy in relation to the timing of the payment for permanent land

acquisition.

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(ii) Monitoring and its reporting

Although the progress of land acquisition has been monitored and comprehensive

monthly internal reports of the project have been prepared by Sarawak Energy

since the commencement of the civil work in March 2013, no specific monitoring

report of REMDP implementation has been prepared so far. However, following

the policy principle under ADB Safeguard Policy Statement (2009), internal

monitoring of REMDP implementation will be conducted and semi-annual reports

will be prepared starting from Aug 2014 until the completion of resettlement

activities after the completion of construction works.

In addition to the internal monitoring, external monitoring will be conducted.

While it is mandatory to comply with state legislative requirement in land acquisition,

Sarawak Energy will consider updating the compensation practices, in the medium

term, especially policy on land acquisition to close the gap with ADB Policy.

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Appendix 1.: Public Awareness Program

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SARAWAK-WEST KALIMANTAN 275 KV TRANSMISSION LINE

PUBLIC AWARENESS PROGRAMME

1 Introduction

Public Awareness Programme (PAP) is a co-component of Public consultation and disclosure

program aimed at informing the stakeholders of project plans and activities in a manner that

promotes open dialogue among all interested parties, and focuses on effecting dialogue

with those who are or will be affected by the project. The programme allows directly

affected parties to have meaningful input in the decision-making process regarding the

development of the project and the mitigation of impacts that will affect them. Meetings

are scheduled and informational materials disseminated as needed to keep people informed

and to maintain project transparency in the public eye. It is the joint responsibility of the

Project Execution Team, EIA Division, SEB Wayleave Department, Corporat Social

Responsibility Department through the Community Relation Team, coordinated by

Community Relation Officer to assure that the program objectives are accomplished.

2 Awareness Program Objectives

2.1 Public Awareness of Transmission Line (TL)

Understanding that TL accidents are possible, operators are taking all possible preventive

measures and that operators anticipate and plan for accident management if it occurs. A

more informed public will know their significant role in preventing accident caused by third

party and ROW encroachment. Public Awareness Program should raise awareness of

affected public and stakeholders of SEB transmission line (TL) in the communities and

increase their understanding of TL in transportation of energy. An informed public along the

TL would supplement the operator’s safety measures and reduce likelihood and potential

impact of TL emergencies and energy release.

2.2 Prevention and Response

Public Awareness Programme (PAP) helps public in understanding steps taken to prevent

and respond to TL emergencies. “Prevention” refers to objective of averting and reducing

the occurrences of emergencies caused by third party damage or encroachment in through

awareness of safe practices and use of ‘one call system’. “Response” refers to objective of

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communicating to the public the appropriate steps to take in event of TL release and

emergencies. These objectives provide the foundation to PAP, and two important objectives

of the Response Plan (RP) are:

To assist operators to develop framework for TL Public Awareness Programme so

that the programme will be continually improved throughout the transmission

system and the industry.

Provide operators with considerations on enhancement of providing the appropriate

level of awareness outreach for a given area and certain circumstances

3 Meeting Public Awareness Objectives

In general the PAP should communicate the relevant information to the public and

stakeholders as follows:

3.1 The Affected Public

Aware that they live or work near the TL

Existence of hazard associated with unintended release

An overview of what steps operators take to prevent accidents and mitigate

consequences when accident occurs

How to recognize and respond to TL emergencies

What protective action to take in case of release and emergencies

How to notify operators of questions, concern or emergencies

How to assist in preventing emergencies by following safe practices and

reporting of unauthorized or suspicious activities

How community land use decision and practices along the ROW and close to

High Consequence Areas can affect safety

3.2 Local Public Officials

Information regarding TL that crosses their area of jurisdiction

Land use practices along ROW that may affect community safety

Hazard associated with unintended release

An overview of what steps operators take to prevent accidents and mitigate

consequences when accident occurs

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How to contact TL operators with question or comments about public safety,

additional overview information on Integrity management programme to

protect High Consequence Area (HCA) under their jurisdiction

3.3 Emergency Officials

Information regarding TL that crosses their area of jurisdiction and how to get

detailed information regarding those TL

Name of TL operators and emergency contact information for each TL or High

Consequence Area

Information about potential hazards of the subject TL and HCA

How to notify TL operators on question, concern, and emergencies

How to safely respond to emergency

An overview of what steps operators take to prevent accidents and mitigate

consequences when accident occurs

How to contact TL operators with question or comments about public safety,

additional overview information on Integrity management programme to

protect High Consequence Area (HCA) under their jurisdiction

3.4 Regulatory Compliances

THE Response Plan is intended to provide framework for PAP designed to help operators in

their compliance with regulatory requirement found in Electricity Ordinance 1992, the

Electricity Rules 1999. Operating Code No.5, Operation Liason; Operating Code No. 6 Safety

Coordination; Operating Code No.7 Contingency Planning and system Restoration of the The

Electricity (State Grid Code) Rules, 2003, outline manner of communication with respect to

operators and public and safety measures and contingency planning under condition of

critical incidence.

3.4.1 Public Education on Emergency Response

The regulations require operators to establish continuing education programme to enable

public and appropriate departments officials to recognize TL emergencies to report to TL

operators, police and fire department. Operators are to provide written programme to

prevent damages to TL by activities. The programmes are to be provided in language

commonly spoken in the area otherwise in English or Bahasa Malaysia.

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Operators should maintain liason with police, fire and other appropriate public officials and

coordinate with them on emergency exercises and drill and actual response during

emergencies.

4 Public Awareness Programme Management

4.1 Notification for Meetings

Stakeholders will be informed about project updates through some or all of the following

methods: mass media (newspapers, posters, radio, television, social network); direct

communication in local languages; direct mail; open-houses (field offices, project site);

illustrated pamphlets; civic assembly; public meetings; and informing village chiefs and local

authorities through SEB Public Relations Team from Wayleave Department and Government

Relation Department.

A two-week notice is sufficient for formally scheduled local authority meetings such as with

Resident and District Offices and District Councils. Meetings on a more individualized local

level will be scheduled at the mutual convenience of the stakeholder group such as

communities, schools, religious centers, local NGOs, and community organizations.

4.2 Project Updates and Schedules

During development phases of the project, SEB will report project update in the District

Development Committee (DDC) Meeting, Chaired by Resident. In addition, individual local

meetings are arranged on a regular (quarterly) basis by the Project Execution Team to target

villages and subject to community development initiatives, and especially where families

that are affected by the operations may have resettled (if needed). Other affected villages

will be visited on an as-needed basis. Awareness meetings include the following tentative

agenda items:

Overview of construction activities over the past period;

Employment needs and hiring update;

Health and safety program performance update;

Environmental and social management programs performance updates;

Rehabilitation of temporary access road and easement areas update;

Community development program updates;

Reasonably foreseeable plans for future activities; and

Other issues of concern.

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In addition to quarterly project updates, SEB is responsible to furnish public notification and

make the environmental and social reports available at a public place accessible to project

stakeholders. In addition to these reports, a non-technical summary is presented to local

stakeholders in the local language. SEB will keep the financial lending institutions (in this

case ADB) appraised of its ongoing consultations as part of its annual reporting

requirements as appropriate.

Project update seminars will continue through the development and operational phases on

a regular basis according to the agenda items outlined above. Notes will be taken and a

permanent record kept documenting those in attendance, questions and answers, agreed

action plan and any additional concerns raised by stakeholders. For example of an

attendance and information sheet that may be used to help facilitate note taking. This sheet

specifically identifies the stakeholder, concern, and the potential mitigation options that

may be considered to address that concern. Minutes of consultation meetings will be made

available to the public in a way that is suitable for the local circumstance within two weeks

from the meeting date. Minutes will be presented in an understandable manner and can be

obtained from the SESCO, NREB office, SEB corporate office, or other suitable location.

4.3 Organization Structure of Public Awareness Programme

The Chief Executive Office of SEB with the support of Executive Management Committee

(EMC) is ultimately responsible for all activities associated with project that presents a

preliminary organizational structure and demonstrates how the environmental, health and

safety programs fit into the overall management structure.

The Manager (the EIA Manager) is responsible for all environmental and social program

monitoring, reporting and performance, and reports directly to the General Manager, Vice

President of Corporate Shared Services and indirectly to the CEO. The Project Execution

Team with the assistance from Wayleave Manager, EIA Manager, CSR Manager,

Government/Public Relation Manager will be responsible for the planning, development,

implementation, oversight, documentation and follow-up on all public consultation and

public awareness programmes through the entire project life.

Reporting directly to the CSR Department Community Relation Team has the ground-level

responsibility to coordinate and implement all community relations, public consultation

programs, dispute resolutions and resettlement issues.

4.3.1 SEB Community Relations Officer

Coordination of all public consultation, community relations and assistance with project

activities will be the responsibility of the Community Relation Officer. Their responsibilities

include the following:

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Identifying when public consultation is needed, then arranging and scheduling

meetings to specifically accommodate need;

Circulating or publicizing agendas and local advertising as appropriate;

Inviting and/or arranging for the presence of specific individuals;

Attending and documenting meetings;

Directing any required follow up;

Working with NGOs and affected stakeholders;

Assisting project/programme proposals for submittal to Project Director; and

Monitoring project/program milestones, utilization of funds, etc.

Beyond these activities, follow-up work may include additional meetings, arranging

specialized consultants for certain task-specific activities, or bringing specific issues to the

attention of SEB Management (Project Director, the Wayleave Manager; the EH&S Manager

and General Manager).

4.3.2 Public Liaison Committee

SEB may opt to organize a Public Liaison Committee to act as an advisory group to its public

consultation program. This Committee may be composed of individuals or representatives

from the SEB and SESCO staff, the local population, local authorities, non-government

organization representatives, indigenous groups and/or specialists, and appropriate

government officials as identified by the State Minister of Public Utilities and Natural

Resources. Such a Public Liaison Committee could potentially act in the following roles:

Resolving problems which cannot be settled by contractors or SEB directly;

Mediating any disputes concerning land use conflicts and resettlement, and

expediting the resolution process;

Maintaining communication and feedback with other committees that may be

established; and

Monitoring community participation and public involvement.

All public consultation, community relations and committee coordination are the direct

responsibility of the CSR through the Community Relation Officer. These individuals are

responsible for maintaining adequate records to assure transparency of the public

consultation program.

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4.3.3 Key Stakeholders

The following groups and organizations are among the key stakeholders for the Project. As a

minimum, public awareness initiatives target these audiences to keep them informed of

project plans and of any substantial changes that may be made to its design or operations.

Government and Community Leaders

The project is located across Districts and Municipalities and District Councils. Resident and

District Office (R&DO) and Chairmen of District councils and municipalities have the ground-

level responsibility to implement and administer the laws at the local level, including

provision of local law enforcement in their area. The community structure is important to

the public consultation process and for accurate dissemination of project information. The

SEB Corporate Relations Director is responsible for coordinating information-sharing

activities with all levels of the community, including the Pemancha, Penghulus, and Ketua

kampong in a manner that is compatible with the local customs and processes.

Government Agencies

JKR, DID, the Department of Natural Resources and Environment and Ministry of Public

Utilities are important ministries to the project regulatory process. In addition, Land and

Survey Department is responsible for the administration of land tenure and disposition of

the land within the Permit boundary. There are a number of other ministries that may be

affected by the project depending on the project specific plans and activities.

Communications with these ministries will be on a case-by-case basis as appropriate.

Local Communities and Population Centers

Villages in the area of the operation, which are closest to the project site, several other local

villages, the more metropolitan areas, are all stakeholders to some extent in the project.

Local villages are considered to be the most important stakeholders due to their proximity

to the project and the potential for economic development in support of the construction.

Indigenous Groups

All ethnic groups, Bidayuh, Malay, Iban and Chinese, inhabit the districts. The largest

indigenous group in the area is the Bidayuh. In the Project area, the Bidayuh are more

economically well-off than most rural indigenous communities in Sarawak. This is

demonstrated by their relatively high incomes from wage-earning employment and other

non-farm remunerative economic activities. A small portion still rely on farming although

the number are declining as dependency has changed with time due to commercial

plantation as well as wage increase in wage earning income.

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4.3.4 R&DO, Municipal and District Council Meetings

SEB may have had several formal and informal public meetings to inform the local

community members of the current project status, plans and implementation schedule. The

meetings also solicited feedback, questions, and comments from community stakeholders,

government officials, NGOs and community-based groups. Information gathered will

provide some baseline awareness level for ensuing awareness programme.

SEB shall organize R&D.O meetings to update the public formally on the project plans and

initiatives. At such meeting, SEB representatives provide an overview of the ROW and

construction work accomplished to date, updated the group on the current project plans

and development schedule, and discussed its ongoing program of public assistance and

outreach through its Awareness program.

Prior to awareness meetings, SEB employees from CSR with the assistance from Wayleave

Department Project Execution Team, EIA Division are to solicit input from the local villages

on what issues were of concern to them and what they hoped they would learn by

attending the meeting. A list of questions is to be formulated from these inquiries to be

adopted as a basis for presentation at the meeting. Local interests tend to focus on the

following general areas:

Future project plans and reasons for certain decisions that were made in the past;

Past employment practices, future manpower requirements and the policies for

hiring local labor;

Availability of information and access to SEB management for effective

communications;

Environmental issues and impacts associated with project implementation and the

issue eg. illegal hunting, trespassing and safety

The sustainability of awareness programs if construction is no longer operational.

After the introductions and presentations by SEB personnel are completed, the meeting

would open to questions from the public. The compelling public interest include project

schedule as it relates to manpower requirements and employment opportunities. Beyond

that, a representative of the local community may present issues of public concern.

4.3.5 Village Chiefs (Penghulu, Ketua Kampung)

Village Chiefs play an important role in managing public policy, expectations, and in the

maintenance of law and order. SEB has to maintain a periodic, but systematic, dialogue with

the community heads and committees with coordination by District Office. The primary

concerns of the villager focus on:

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Employment opportunities for local residents;

Schedule for land clearing and construction development; and

Potential financial contributions to local projects like village and farm access roads

and any compensation due to property owners.

5 Awareness Programme Administrative Process

The following general administrative process provides some basic steps as guide for TL

operators in the implementation of their Public Awareness Programme:

i. Define PAP project objectives especially on response plan

ii. Obtain management commitment support

Develop management PA policy statement of support in terms of manpower,

financial and technical resources

iii. Identify programme administrators and responsibilities

Name PA programme personnels and effort

Identify and document roles and responsibilities

iv. Identify transmission line, assets and ROW included within programme

PAP may be for specific assets, specific TL system or for overall TL system

v. Identify stakeholders audiences

Identify method to identify and categorize audiences and establish means of contact

and address

Affected public

Emergency official

Public officials

TL Operators

vi. Determine type of messages for each target audience

Determine and document message type and language to be targeted to different

audiences

vii. Establish baseline delivery frequency and coverage for each message

Suggest delivery frequency and coverage areas based on significance and level of risk

viii. Establish delivery method to be used for each message

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Select and document the best and appropriate methods

ix. Implement programme and track progress

Develop resources and monetary budget

Identify and assign tasks to participating personnel and operators

Identify and engaged external consultants if needed

Communicate and conduct programme activities – mailing and meetings

Collect feedback from internal and external sources

Update programme with newly identified activities

Document the above processes

x. Perform programme evaluation

Establish and evaluate process

Determine data sources – from audiences and target group feedback

Assess result and applicability of operators

Document evaluation result

xi. Implement continuous improvement and document changes

Determine programme changes and modification based on evaluation and findings

to improve effectiveness of the awareness programme and recourse process from

step v.

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Appendix 2. : The Electricity Ordinance (EO)

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Appendix 3. : Land Code, Chapter 81 (1958 Edition)

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LAWS OF SARAWAK

LAND CODECHAPTER 81

(1958 EDrTrOlO

lncorporating all amendments and modifi cations' up to L 1.1999

Conpiled in the

STA'IE ATTORNEY.GENERAL'S CIIAMBERS,KUCHINC

DICETAK OLEHPERCETAI(AN N,4SIONAL MALAYSIA BERHAD,KUCHNC, SARAWA(1999

: 1 - . ] .

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Part II

Native customary rights

5.---(1)'' As ftom the lst day ofJanuary, 1958, native customaryrights may be created in accordance with the native customary law ofthe cornmurity or conmunities concemed by any of the methodsspecilied in subsection (2), ifa permit is obtained urde! section 10,upon Intgrio! Ar€a Land. Save as aforesaid, but without Fejudice tothe provisions hereinafter contained irt respect of Native CommunalReserves and rights ofway, no recognition shall be given to any mtivecustomary rights over any land in Sarawak created after the lst day ofJanuary, 1958, and if the land is State land any person in occupationthereofshall be deemed to be in unlawful occupation of State land andsection 209 shall apply thereto.

At The methods by which native customary rights may beacquired are-

(a) the felling of virgin jungle and the occupation of theland ahereby cleared;

(b) the planting of land with fruit trees;

(c) the occupation or cultivation ofland;

(d) the use of land for a burial ground or shrine;

(e) the use ofland ofany class foirights ofway; or

(, any other la\{ul method:

Provided that-

(i) until a docunent of title has been issued inrespect thereof, such land shall coriti[ue to be State landand any native lawfully in occupation thereof shall bedeemed to hoid by liceoce from the Government and shallnot b€ .equired to pay any rent in respcct thereof unlessand until a document ofiitle is issued to him; aid

(ii) the question whethq any such dght has beedacquired or has been lost or extidguished shall, sd[e''in sofar as this Code makes contrary provision, be determiriedby the law in force immediately prior to the lst day ofJanuary, 1958.

2"1

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Part U

(3) (a) any narive customary rights may be extinguished bydircctioo issued by the Minisier which shall be-

(i) published in the Gdzette arld one rpwspaper circulatingin Sara'.la! and

(ii) €xhibited at the trotice board of the District Oftice forthe alea whele the land, over which such rishls aJe to beextinguished is situate,

and on the date specified in the direction, the native customary rightJshail be €xtinguished a.rd the land held under such rights shall revertto the Goverunent:

Provided that where such rights are extinguished in pursuance ofthis lection compedsation shall be paid to ary person who canestablish his claims to suoh rights in accordance with paragraphs (r)and (c); or other land over which such rights may be exercised may bemade available to him with or without the paymert of additionalcompensatioE whethgr for disturbance, or for the costj of rqmoval, orotherwise.

(b) Any pe6on who desires to rnake any claim forcompensation mtst submit his claim with evidence in suppofi thereofto the Superintendent, in a folm to be pr€scribed by him, within suchperiod as may be stipulated in the direction issued by the Ministerunder paragraph (a), provided that the period so stipulated shall notbe less than sixty days from the date of publication or exhibitionthereof.

(c) No claim for compensation for extinguishment of nativecustomary rights shall be entedained by the Superintendent ulrlesssuch claim is submitted within the period stipulated in paragraph (D).

[Sub. Cap. A42].

(4) (d) Any person lvho is dissatisfied with any decision madeby the Superintendent under subsection (3) on the ground that-

. (i) bis claim to native customary rights has been rejecredor not lecognised by the Supedntendent;

28

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29 Part II

(ii) the allocation of land over which such rights are to beexercised, is inadequate or inequitable; or

(iii) the amount or apportionment of compensation isinadequate, uofair or uueasonable,

may within twenty-olle days from the date of receipt of the decision ofthe Superintendent, by notice in rwiting addressed to theSuperintendent, require the matter to be referrgd to arbitratiof| ina.cordance rtith section 2 1 2.

(b) Upon receipt of the notice of arbitration, theSuperintendent shall dircct that any compensation payablo to theperson who desires to have his claim or matter refered to arbitration,to be deposited in the High Court, pending the outcome of sucharbitation prcceedir€s.

[Sub. Cap. 442].

$l Subsection (3) shall apply whether the land over whioh thecustomary rights are exercised is required for a public purpose or theextinction of such dghts is exp€dient for the purpose of facilitatingalienatioo, but shall have no application to cases io which the ForestsOrdinance [Cap 126 (1958 Ed.)], tLe National Pa*s anq NatureReserves Ordinancc, 1998 lCap 271 ot any other wrinen law,includiag Part V, makes other plovision for the extinguishmontthereof.

[Iis. Ord. No.2 /74].

1S The Majlis ves,'uarat Kerajaan Negeri may make mles forthe Fssessrnent of compensation payabie for extinguishment of nativecustomary dghts under this section ard section 15.

[Am Cap. 459].

@ lvh"n"u", -y dispute shall adsc as to whether any nativecusiornary rights exists or subsists over any State land, it shall bepresumed until fie corhary is proved, that such State land is free ofiurd not encumbered by any such rights.

[Ins- Cap.442; An. Cap. A59J.

; i : : +

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?ertrl 3a

NatiYe Commural RereweE

6.{1) The MiDister msy by order signified in be G@ettedeclare any area of State ltnd to bc I NEtiv€ CoE.munlt Rcsewc fotthe use of any comm Jtrnity having a ,atjye systgm of porsona.l law andmay, bJ such ordei or by sublequcnt order, <tecl8lc that thc customsrylaw of such coElmunity in relatioq to tlre arquisitio4 kansf€r a;lt "ans-mission ol rights and pdvileges i! or over land, and itr anybuilding or other structurc ereoted thcreiD, shalt apply with sgcimodifications as may be specified or provided for in any zuch oder.

^ .(2) Save in so far .s fte concary may be specifed or providedtor in any sucb order or by this section, rights in stry land declar€.d tobe a Native Coemunal Reserve under subsectiotr 0) shall beregulated by the customary law ofthe community for whosc use it wasdeclarcd to be reserved.

.:

:i

- (3) Notwithstanding subsectior (2), but without ptEjudic, tosubsections (4) to (7) inclusive, any such land shall cotrtinue 10 beState latrd, and the-native cottrmunity fol whose use it r|las rcserved orany member thereofacquiring any rigbts ther€in sba[ hold lhe Eame asa licensee fiom the Govemment, and if, by virtue of the Fovisions ofthis section (ircludiog the provisions of any ord€fl made undersubsectioir (l)), any individual nativ€ customary rights becomeestablished, the issu€ of any docrulent of title in respect thercof shallbe in the absolute discretion ofthe Director;

Provided that the Minister may of his own motion or uponpetition review and confirm or amend any exercise ofsuch discretion.

[Mod. Swk L.N.6A6a].

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3 l Part II

fMod. Swk L.N. 68/64].

(4) If the Ministq is satisfied that any part ol any area

.o--ir.a in any declaration rurder subsection (l) is no longer

."quit"a ^ u N"ti"" Communal Reserve and that this subs€ction may

be'applied *ifiout causing injustice or oppression, he may -by order

.ignin"a in the Gazette d(flarc th:d such part shall cease to form part

of'*"tl N"tiu" Corn-unal Reserve, and as ftom such date' if any' as

no- *t i"tt .u"n a""taration is e{pr€ss€d io come into efiect' or' if no

"-J dut" i" expressed, then as Aom the date of publicatior in the

7^"*r"'of u"V,,t"h orde,, such part shall be at the disposition of the

c"""*a*t as free and unencumbered by any right' privilege. or

Jqriry-it t"tp"", ,tt*"of as if it has never beel declared to be a Native

Cornmunal Reserve

(5) The Minister may, if ho considers that the settlement

orovisions in Part v slould be applied to the whole or arly part of any

ilutJ" io-rn*uf n"sewe, by order signified b the Gazette so direct'

and the Director shall in such case proceed accoldingly'

(6) This section shall apply also to native land -r9serv91

"on"tXt"d urrd"r

"""tion 9l of thi fotmer l:arld Otditatce lCap' 27

iiil!'raLf *a latr"e communal Areas constituted under rule l9 of

*r" l*a S'entem"nt Rules in like malrner to all intents and purposes

".-ii,ft"" i"a U."" ."n$iruled by order undcr this seclion' save that if

ii" ioiii.aion it.u.l under that sectron or that rule' as the case may

i". iu, not "p""lft"a

for which cornmunity any reserve was constituted

,frJ t"*" "t'itt

be deemed to have been reserved for the commumty

it i"t iutin t*t -oa" use of the same or if any dispute or question

;;;,;;; th" .""t"t*itv for which the Minister may bv order issued

i"i"i J*"i"t tli tubsequently declare it is to be deemed to have

beeo reserved.

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Part Il 32 I

i(7) In any case in which this section applies, the question as toyl:1"1 -t *T"1 whethe! or not sucr person is a member of theqalrve coftnunify for whose use the reserve is o. is a".q,"a io iei,"ljYT9:-"I "Il*ise any dghts or privileges within ,uJ;;;sna|| be determiDed by lhe customarv t"* of *"f,

"oln^*ity ,o? Oysuch orders, if any, as may have been made uoOe, ttri. ,"ctioo, aaj,saye to ths extent that aoy such perscoccupationr-y;;;*;;,1*;i;"1"J"rT.::f .:"#:il,t:

ffilTjol n,:"*'a*ril occupation of s,ur" t*a'*i ;il;;

Govemment Reserves

7,-{l) In any case where an ar****m**'"#x:n;;l"*;""r"m r#'*:"#T;the Director may by notification in the Gazen" a""f"r" ,u"f, ar"ui-il

#;:ffi :1 :ff nltJffihe?ubric purpose ro''ili;;'i*;

H;#id.Ts##rrflrlilH"ffirjf.;*il jthe change of.d purpose previously rcrified o. tl" O""farurion'oiti"

;H:::. 3il|j::.'tr* ;:'o:,T:"*'' t'"u r.' *v'p""ir"J p"u'iii

::.*'i]q:J#.,fiilTx#.1,:1.:::fr ilTfl 5:H:,';.ffinotification in the Gazerle declare tbat tie area rs no longer required as

F:ffi ;!ff ffi *"hnuilfli.lritrl"tiri,;,'],",Jcase of other State land.

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Part II

Illegal for lotr-nativ. to acquire rights or privileges ov€r land ofcertain classes

8. Save as provided in section 9-

(a) a persotr who is not a native of Sarawak may notacquire any rights or privileges whateve( over any Native AreaLand, Nalive Customaiy Lalld or Interior Area Landi

(b) any agreement, purporting to tnnsfer or confer anysuch rights ot privileges or which would result in such personenjoying any such right or privilege, shall be deemed to ha./ebeen entered into for an illegal consideration; and, in particularbut without prejudice to paragraph (/), any consideration *,hichshall have been paid or fumished shall not be recovetable in anycourt nor shall any reliei be afforded to any person claiming tharany consideration promised has not been paid or fumished;

(c) any person purporting to eoter into an agreement towhich paragraph (D) applies shall be guilty of an offence:Penalty, a fine ofone thousand ringgii and, in the case of .l nativeoffender, an additional fine of a som equivalent to the value ofany consideration which the court is satisfied has been receivedby that native ofender or has been received by another person onhis behalf or by his direction;

(/) in a,ry oase in which a pe$on is convicted of aa offenceunder pa$graph (b), dre court may, if there is reason to believethat such peNon did not appreciate he was contraveningpangraph (a) and had no reason to believe he, was entering into aprohibited transactioit, impose no fine and rnay also, if; it hasimposed an additional fine on a lative offender and thisparagraph applies to the norl-native offender, order the payment10 such non-native offender out of such fine of such sum by rvayof cornpensation to the non-oati\.e offeoder as it may dgem fit inall the ciroumstatrces;

(e) subject as aforesaid and to any remedy for the recoveryof any fine imposed, the rights and privileges of ary native shallnot be adversely aflected by any agreement to which paragiaph(6) applies;

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Part U

(l) upon aay conviction ofan offenct under paragraph (c)the coud shall have power to ordor the eviction of any person,being a nos-native or a pelson claiming under a non-nativc inpossession or occupation of any land ia relation to \r&ich thcofence was committed, ud may for such purpose by warrantaddresscd to any police offic€r ordor him to remove any suchperson as aforcsaid;

(g) a complaint ofan ofence undcr paragnph (c) nay b€made by a Dishict Offic€r o! a Superintendcnt or by aoy persongeoerally or specially authorized in rhat behaf by the PublicProsecuto!, but may not be made by any othcr person; and

(l) notwithstanding anything in any othcr wdttcn law, acou of a Magistrate of the First Classr may oxercis€ without anylimitation the judsdiction confered on the aout by tltis section.

* Nov r& also seotiots 3 and I I I otthe &botdirnte Courts Act 1948 (Act 92r.

Acquisition of lard by trotr-trstiv€a

9.{1) Section 8 ehall not be deemcd to prohibit theac4uisition by any nol-native of any land to which the Fovisiots ofthat section appll or of atly rights or interest itr o! over such lan+-

(a) under or by vfutue of any la\Y for the time beingregulating Fosp€ctilg for minemls, iduding mineml oils, or thetaking of forcst produc€i

(D) whenever such non-native has become identified withand subject to any native system ofpersoDal law;

(c) whenever such non-native has been issued with anypemit rclating to Native Area Land or Nalive Customary 1,4n4issued under any rules made under section 8A oflhe former Lald(Ctassification) Ordinance, 1948 [Od No. 19t194$, or isstte.dunder rules in that behalf under section 213, to the extent of thedghts confeEed by such pelmit:

34

i{

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Part II35

(d) where such non-native has beeo deemed to be a nauve'

uu *,J't.luiti, t't".r"r*at Kerajaan Negeri' by notification in the

A;;;,;:l; r.rp".i or unv catigory of dealing over Native Area

Land as stipulated in the notificationl

[Sub CaP. A50]'

(e) whenev€r such norFoative has been issued with any

lic.nc-J unde. this Code to extract.and remove eadh' gravel' clay'

stone, coral, shell, guano, sand or llme'

fAdded Qrd. l8/71]'

Q\ For the purposes of this section' a person shall be deemed

to liil u""o." identihed wirh and -suhiect to anv native system or

oersonal law upon any event upon wntcn any written law provides he

fi;i;;"-;" ia"i ln"a *a subject or if he is accepted bv anv-

ffi."""-t*tat * oeing identified witi and subject to the system of

peisonal law of such communitY

Occupriion of different classe! oflsrd

10.-{l) Without prejirdice to sectio! 5 (2Xe) -to:::111::,::

to tti p.ou#ont oi*y wrinen law' no person may occupylr.exerclse

"""'ilio ". d"lf"g"' ou"' -y Mixed Zone Land or Native Area

ill'd"il il;; ;;ia -t 'ukl"ti"g document of title and' ir tlrc"f"iir"'a"Jt" rt *alienated, any ocrupier thereof shall be deemed

;;i;il;;tuil;oation oi state lani and section 209 shall applv

thereto.

(2) No person whether a native or non-native may occupy any

N"riil'c*,"r,l"w Land or any Reserved Land save under and in

;il;;;iilonditions applicable thereto bv vittue of this or

i" o,fro *rin* fu* and any person in occupation thereof shall be

lji-"j-l u" i" u;mtl occupation of statc land and section 209

shall aPPIY thereto

t -

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l Part II 36

Wirhorlr prejudice ro ary law for the rime being reguJatingtj|e prospecting for minerajs and mineral oils or *le tating oi forestproduce, any narive who, withoul a prior permit in writi-ng Fom al]i3". ll1:"9:"1 ""*pies any Interior Arca uana o, r.rrs o, uriernjltJre vugth Jungle upon any such land or at&mpts to create customarvrrgnB upon any such land shall be gujlty ofan ofTence: penalty, ia thecase of a first offence, a fine of orie thousald ringgit and, i, il";;;of a second or subsequent offence, imprison-ent-fi. two'r"*r;;fine of five thousand dnggit.

(4) . rhe occupation "rr*"n,, *":X:{, ::tX#:"community without a pemit in writing ftom a Superintendenr shalinot, not\'r'ithstandi[g any law or custom to the

"onOu.y, "onf". *yright or privilege on such nalive or native commuruty and, in anv suchcase. such narive or nadve community sf,ufr u" i"".J to-'U" i"unlawtul occuparion ofState land and sectio" ZOS ,ldl ;;ly ;"r"t".

6) rhe consent of a Superintendenr ,", ̂ "t#J{" JoT,permit shall not be given if he considers either rrr"*i "l""ra

j.Jiprejudice Lhe indjvidual or communal righrs of

",b.^ o, th;;;;;;;

mereDy_preJudrce the interests of Sarawak or its inhabirants in the aleawnere fte tarrd applied for is situate.

[Am Cap. Aa2J.

^ (9) Any person aggrieved by any decision of therupeflnrendent may within twenty_one days appeal against sucb

l::,i:ion to the.?ir:ctor, who may make suctr oraer in resfgct ttrereo?as he may consider iust.

[Am. Cap. A42J.

, (7). Any person aggrieved by any order of the Direclor under

:J:o,s:c]ron 16) m1y appeal, by way of peririon to lhe Minister, withinlnury.qays.ther€:tner or within such longer period as the Minister may,ln any partrcular case. Dermil

[Mod. Swk. L.N. 68/64; Am. Cap. A42t.

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i

I

!

Part II

Director may clsssify latrd rnd resolve doubts as to classificationofsny particuhr sr€a of hnd

1f.-{1) The Director may divide Sarawak into Land Districtsand may, for tho pupose of giving effect to this o. any other wri6enlaw, by notification in tJ:re Gazette declare any area of land to be aspecial development arca or to be town, sububan or land comprised ina bazaar or to be land of such class or descriplion as may be providedfor under such wdtten law or as may be prescribcd by rules under thisCode.

[An. Cap. A17J.(2) The Director may, if he is satisfied that alty parcel of land

is Mixed Zone Land or Native Area Land within the meanins ofsection 2 as read with this PaA and thar it is expcdienr that this sectionshall apply thercto, by notification il the Gazette declare that suchparcel is Mixed Zone Land or Native Area Land, as the case may be.

(3) Suoh declaration shall, unless revoked or varied by theCourt rmder subsection (4) o. unless the classification ofthe said landis subsequently altered by virtue of anlthing in this parf, be sufficiedautholity for the Registrar, any prcprietor thereofand any other personto register and deal with such land as Mixed Zo[e Larrd or NativeArea Land, as the case may be.

(4) Any person aggrieved by any declalatiotr tmder subsection(2) may by notice in writing require the Director to state a case fbr theopinioD of the High Cout, and the Director shall comply with suchrequ irement.

(5) The High Court shall have power upon any case beingstated under subsection (4) to detemine the matter aad for suchpurpose to amend the case stated in any mannef it thiJ*s fit.

(6) The Coqt's determination under subsection (5) shall forthe purpose ofany appeal be deemed to be made in a civil proceeding.

(1) The expression "any person aggrieved,' shall include anyperson having a right or interest in the land concemed and also theState Attomey-General actitig on behalf of the public or of any classof the Dublic.

[Mod. Swk L.N. 68/64].

37

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Part III Jtr

PART IIISTATE I"AND AND THE AI.IENATION TI{EREOT

Property in and cotrtrol ofstate lards alld wrterrrayc

. 12. The ertire prolerty in and cortol of State la.d ad ofallnvers, steatrs, carals, creeks and watef coursss and the bed thergofi;and shall be vested solely in the covemmen.

Di.scretioE to dienate

- _, .13.{t) Subject !o &e direction of the Minister under section1(1A), the Director may alienate Sbre land, other than NativeCuslomary Lard-

[Sub. Ord. No. 8/84J.

- (a) in perpetuity or for such terms as may be fixed bv rulesmade under this Code for tlte respedive clasr* of funa ,"d,r"Ji.

in such ruleq

(6) in consideration ofthe parment ofan armual rent;

- - (c) in consideration, unless the Majlis Mesyuarat KemjaaD

I:C:d rbinks fir ro exempt thereftom in any p.,il; ;;;he.palment ot a premiun, and where the alienation bas beeu

made in consideration of the payment of a pr"aiutn, Aa "_ountol ue premium shali be skted. Tbe palment of thc prEmiurD, ifany, may be

_madc either by a single payment or by instalments

:,":.1-!:T1 not exceeding teo years as may be determhed byIne bupenrtendent:

[Am. Ord. No. 9n6; Cqp. A2gJ.(4 subject, unless the Dbector otherwise dirccts, to acategory of land use being endoned on the document oftitle: anJ(e)

_ subjed to any such other conditions and reshictions asmay be irnposed by the Director.

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Part III

(2) Subsection (1) shali apply with such modifications as maybe nec€ssary to the issue of licences or permits io respect of Statelard.

(3) The powers hereby vested in the Director may be exercisedby a Superintendent sBbject to the Director's inskuctions and theMinister's directions.

[Am. Ord. No. 18/7];Ord" No. 8/841.

(4) The powers hereinbefore confened sha.ll i[clude power toconsent to modification of any conditions imposed by or on behalf ofthe Government, wh€ther befofe o! after the lst day ofJanuary, 1958.

[Am. Ord. I8/71].

(5) Notwithstanding the powers coderrod by this section,State land shall not be alienated to arly person except-

[Sub. Ord. 18/71].

(a) a natural perso!!;

(r) a coryoration having poiirer uoder its constitution tohold land;

(c) a sovereign or government;

(a) an orgaoisation or other persori authorized to hold landunder the provisions of any law for thc time being in forcerelating 10 diplomatic atd consular privileges;

(e) a body expressly empowered to hold land under anyother wdttel laq and

(/) any person or body, not refered to in paragraphs (a) to(e), approved by the Majlis Mesyuant Kerajaan Negeri as aperson or body who may be registered as the proprietor of land.

[An. Od. No. 9/76; Cap. A28].

39

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LAND CODE (AMENDMEN"Ti )OOO

Amendm€nt of 6ection 5

3. Section 5 of the Code i$ amended_(a) in subsection (2):

"oo" jll,l',,iJ1",1t,11ffi 1il;.ilT"1[*;3i"T*'*

,r. (ii) bV adding the word,,or,'to the end of paragraph

. (iii) by substituting the semi-colon and the word.,o/,at the end of paragrapl (e) with a ""f"r;

*A'"^- "^

(iv) by detering para$aph A;(r) by delering subsectioDs (3), (4), (5) and (6); .(c) by renumbering subsectior (7) as subsection (3); and

,n" ,!?"JrtdXtii*,:f;3i||l"lv arter the new subseation (3)

. "(4) Ary Dative customary rights lawfully created,xX':'"".t'iT[f; !,J#n*"*l"m:'*,".tt""!$iffil"T;#d*"$:rffiru;*;:ne*'rn*I[i,:

Amendmetrt of sectio|r 6

__ 4, Section 6 of the Code is amer(4) wirh the following new ,uor""o'jjo,li, tuo"'tuting subsection

:^=;{X}fi 'l;I;uHii"T'i'ii:ltf;igff

i?i',fl ff f;ji[ry{":!i!'lir"T'.;ffi 'f ,tl':iJl,'trf it1fl "'si"tlTl]ar1d compeosation to.be paid to

lf, T,p#?iii;il;J","Xil:""#'o"f ',i::"iiyl"il'J#:

AB€ndment of s€ction 75. Section 7 of the Code is ametrded_

""b"#lr.,lJ addiag after subsecrion (2) thc following new