Subproject Proposal

Project Number: 44140 July 2012

TA 7566-REG: Strengthening and Use of Country Safeguard Systems NEP: Strengthening Involuntary Resettlement Safeguard Systems in Nepal

TA 7566-REG: Strengthening and Use of Country Safeguards Systems SUBPROJECT PROPOSAL

A. Basic Data 1. Date: 06 July 2012 2. Subproject Title: NEP: Strengthening Involuntary Resettlement Safeguard Systems in Nepal 3. Subproject Officer: Laxmi Prasad Subedi 4. Division/Department: SARD 5. Country/Region: Nepal 6. Implementing Organization: [ X ] ADB [ ] CSO [ X ] National Planning Commission, Nepal 7. Amount Requested: $350,000 8. Period this funding request will cover: {August, 2012} to {October, 2013} B. Name and Description of Implementing Organization The subproject will be jointly implemented by ADB’s Nepal Resident Mission (NRM) and Nepal’s National Planning Commission (NPC). The subproject team will be led by NRM with its staff input. The NPC shall be responsible for providing overall guidance and managing the consultants’ outputs and subproject activities, and for coordination with relevant line ministries. NPC is an advisory body for formulating development plans and policies under the directives of the National Development Council (NDC). It facilitates the implementation and evaluation of development plans, policies and programs. NPC has been implementing various technical assistance (TA) projects supported by different development partners, including the successfully completed ADB-supported TA 4422-NEP for preparing the National Resettlement Policy Framework in 2004. C. Subproject Description 1. Background and Rationale: Nepal’s legal framework for property acquisition and compensation dates back to 1977. With the changing political context, growing development opportunities and the rising aspirations of the people, enforcement of the dated legal framework has become increasingly challenging. To establish an efficient land market and address the challenges of limited options for relocation of project affected people and the widening scope of safeguard policies, NPC recently approved a Land Acquisition, Compensation and Resettlement Policy (LACRP), The Policy—drafted in 2006 with ADB support and updated with additional advisory support in 2010—is awaiting Cabinet approval. The implementation of the Policy is, however, constrained by weak institutional capacity, lack of resources, lack of awareness on regulatory provisions, limited skilled human resources and the general pressure to fast-track development work with little regard to resettlement issues. ADB has been assisting and engaging in policy dialogue with the Government of Nepal (GON) since 1998 for improving Nepal’s resettlement and land acquisition practices. For example, ADB RETA 57811 helped to carry out a study on resettlement practices in Nepal, which had recommended formulation of a national resettlement policy framework applicable to both internally and externally funded projects. Nepal also participated in RETA 59352, under which a draft amendment to the Land Acquisition Act was prepared. However, the amendment has not materialized because the national consultation workshop concluded that the draft Act requires further consultations before enactment, and a policy should precede the Act. ADB provided further assistance under TA 44223 to develop a national resettlement policy framework for implementation of development projects in a socially responsible manner. The draft policy is more enhanced and close to the ADB’s safeguard policy requirements. Major highlights of the draft policy are avoidance of involuntary resettlement, priority on negotiated acquisition, acceptance of replacement cost principle, provision of social impact assessment, emphasis on consultation and participation during project

1 TA-REG 5781: Review of National Resettlement Policies and Experience with Involuntary Resettlement Projects, for

$831,000, approved on 10 March 1998. 2 TA 5935-REG: National Enhancement Policy Enhancement and Capacity Building, for $500,000 approved on 20

September 2000. 3 TA 4422-NEP: Preparation of National Resettlement Policy Framework, for $150,000, approved on 28 October 2004.

cycle and strong grievance redress and monitoring mechanism. In essence, the Policy recommends amendment of the existing Land Acquisition Act, development of sectoral technical guidelines and enhancement of the institutional framework and capacity for the improvement of the involuntary resettlement safeguards system in Nepal. The Land Acquisition Act 1977 is the main legal instrument governing land acquisition and compensation. The Act requires prompt and adequate cash compensations for person who lose their land and property. The Act and associated regulations, however, do not meet ADB’s involuntary resettlement requirements particularly on loss of income source and livelihood restoration, social impact assessment, consultation and participation of affected persons, disclosure, and entitlement to non-titleholder, grievance redress and monitoring mechanism. As a result, design and implementation of ADB-supported projects fillings gaps in complying with ADB requirements, usually in the form of frameworks and/or loan and grant covenants. Despite the gap between international best practices and existing legal framework, the government is also addressing issues of entitlement to non-titleholders for their livelihood loss and adoption of market rate for the compensation on case by case basis by special decision of the Cabinet. Even then, effective implementation of such frameworks and/or covenants and generalization of government initiatives has been largely affected mainly due to the lack of adequate legal provisions. To overcome these limitations, and make the law compatible with the international best practices and to meet current requirements of the country in implementing development projects, Nepal Law Commission, a statutory body to draft/reform laws in Nepal, has recently drafted a land acquisition act, 2011 with an aim of amending and integrating existing land acts in Nepal in anticipation that the draft Policy would be adopted by the Cabinet. The draft act has addressed some issues identified as gaps associated with international best practices on involuntary resettlement. The provision of social impact assessment, defined timeline for compensation payment, priority over negotiated settlement and consideration of livelihood and economic losses are some special features of the draft act. However, the Cabinet seeks a detailed assessment of financial implications of the Policy enactment for public sector projects. Similarly, the new provisions of the draft act would also have some implications for resettlement planning and implementation in infrastructure development projects. GON has requested ADB assistance for the assessment of financial implication of the draft Policy and act and preparation of technical guidelines on involuntary resettlement. The technical guideline would provide implementation clarity and help to transform established principles of involuntary resettlement, provisions of existing regulatory framework and the international best practices into action. The guideline includes a methodology for valuation of affected assets following replacement cost principle based on international best practices. The guideline also provides interpretation of procedures with step-by-step guidance on resettlement activities from inception to completion of a project. GON has also requested support for conducting an institutional and capacity development needs assessment for making necessary preparations for implementation of the Policy soon after it is approved by the Cabinet. The capacity to plan and implement resettlement activities varies across ministries, departments and other government agencies. While consultants are being recruited to fill the capacity gap, there are problems with the quality and capacity of consultants themselves, government agencies’ management efficiency, and availability of effective and harmonized guideline for resettlement planning, all of which contribute to implementation delays. Against the above backdrop, the proposed subproject will assist GON to conduct a diagnostic study of the existing regulatory frameworks and policies with international best practices including assessment of financial implications of the draft policy and specific practices adopted by government to address gap between international best practices and develop technical guidelines to make Nepal’s involuntary resettlement safeguard system more effective. The subproject will also assist in identifying institutional development and capacity development requirements in line with the proposed policy and legal reforms. While implementing the subproject activities, some comparative assessments between relevant laws, proposed policy and act in Nepal and the requirements of the SPS will be conducted and along with recommendations on how these gaps can be rectified. The subproject envisages strengthening the effectiveness of the public delivery system and mainstreaming of social safeguards in the government system in line with the Country Partnership Strategy 2010-2012. In this respect, the subproject activities

will help to achieve the objectives of TA 7566 to strengthen country safeguard system with increased country ownership of safeguards planning and implementation. The proposed scope of the subproject--diagnostic study of the legal and regulatory framework; developing guideline for procedural clarity; institutional strengthening; and capacity development for effective implementation --are the priority needs of GON for enhancing its involuntary resettlement system and practice. The NPC and relevant government agencies discussed the subproject objective, outcome and outputs with ADB during a safeguard review mission fielded in December 2011. The revised proposal was reviewed by ADB and NPC in January 2012 before submission to the steering committee for review. This version has also been reviewed by the government focal point for the subproject and the government focal point agrees with the proposed changes. 2. Outcome(s): The outcome of the subproject will be enhanced involuntary resettlement safeguards system. The outcome would be confirmed by three indicators (i) the new act incorporates gap filling measures identified under the diagnostic study; (ii) the institutional development plan developed through the TA is implemented and the technical guidelines are adopted by relevant government agencies; and (iii) better understanding of IR safeguard issues and approaches to address the issues by staff trained. 3. Outputs: The outputs of the subproject will be (i) diagnostic study of existing legal and policy frameworks on involuntary resettlement conducted, (ii) institutional and capacity development plan prepared, (iii) technical guidelines on land acquisition and compensation, and resettlement for 3 key sectors developed, and (iv) capacity building measures for IR implementation conducted. 4. Key Activities and Inputs The proposed subproject will support the policy enforcement capacity of the executing agency and implementing agencies. Key activities and inputs under the proposed subproject for achieving the above outputs are as follows: Output 1: Diagnostic study of existing legal and policy frameworks on involuntary resettlement conducted.

1. Review of involuntary resettlement policy, legal and regulatory provisions. 2. Conduct comparative analysis of the Land Acquisition Act 1977 and draft land acquisition,

compensation and resettlement policy against international best practices. 3. Conduct analytical assessment on financial implication of draft land acquisition, compensation

and resettlement policy and the draft land acquisition act. 4. Conduct review of major constraints on cadastral mapping and ownership transfer for the land

acquired by development projects and recommend appropriate mechanisms/technology to expedite the cadastral mapping and deed transfer process.

5. Prepare recommendations for improvements of the existing land acquisition act 1977. 6. Prepare and submit final report and recommendations of the diagnostic study and comparative

analysis to the National Planning Commission. Output 2: Institutional and Capacity Development Plan Prepared.

1. Conduct comprehensive assessment of the existing institutional capacity to implement new policy requirements and the proposed legislative changes.

2. Prepare needs assessment report focusing on organizational changes, staffing as well as sectoral guidelines, including an initial capacity development plan, training and budget.

3. Prepare institutional and capacity development plan on IR safeguards.

Output 3: Technical Guidelines on Land Acquisition and Involuntary Resettlement for three key sectors Developed.

1. Review technical guidelines available on involuntary resettlement and assesses the applicability

in changed context. 2. Draft sectoral technical guideline on land acquisition and involuntary resettlement to implement

the land acquisition act for better management of land acquisition and resettlement and valuation methodologies. Based on current portfolio road, urban and energy sectors are the most important sector for government and ADB. The technical guideline will be prepared for these three sectors. The working group will take the final decision on the sectors to be considered by the subproject.

3. Organize stakeholder consultation workshops to review and comment on technical guideline, collect stakeholder’s view for the improvement in existing land acquisition act. At the national level, two consultative workshops will be organized in Kathmandu to discuss on issues and possible solutions and implications for policy enforcement and changes in the Act. The workshops will aim to forge a consensus and support from government agencies, civil society, NGOs and other development partners.

4. Organize maximum three regional stakeholder consultation workshops to review and comment on technical guideline. The workshops will include representatives of relevant government line agencies, local bodies, civil society, resettlement experts, project-affected people, NGOs, ADB and other IFIs.

5. Conduct filed visit for at least 3 infrastructure projects one from each sector covering energy, road, urban to identify policy and implementation issues at field level. The projects will be selected based on scope of land acquisition and resettlement. For this purpose, a team of government officials including key members of the subproject working group and representatives from the agencies concerned with land acquisition and resettlement at various level of government will visit infrastructure projects. Projects to be visited will include a mix of ADB and other development partner-supported projects and solely government-funded projects. Such a visit is expected to provide an opportunity for the working group member to review a real case on management of land acquisition and resettlement. The field visit notes prepared by consultant team will highlight the key learning of the project implementation where amendment of recommendation for the improvement of land acquisition act and content of technical guideline would assist in achieving involuntary resettlement policy requirements.

6. Prepare final draft of technical guidelines incorporating the views and recommendations from the various stakeholders; reviewed by a working group, NPC and concerned ministries; and then submitted to the NPC.

Output 4: Capacity building measures for IR implementation conducted.

1. Provide support and advice on implementation of institutional and capacity development plan. Develop curriculum/training module for involuntary resettlement planning, implementation monitoring and develop training plan. Start implementing training plan with institutional setting and capacity development.

2. Conduct capacity development training sessions based on recommendation of institutional capacity development plan.

About 60 persons including staffs of key ministries and departments responsible for resettlement planning and implementation will be trained by organizing 2 training sessions in Kathmandu covering resettlement planning, implementation and monitoring. Regional balance will be maintained while selecting participants. About 20 persons from national NGOs and private sector entrepreneurs working in the involuntary resettlement theme will be capacitated by providing opportunity to participate in capacity development training conducted under subproject.

3. Conduct Training of Trainer (ToT) session for 20 persons. For the sustainability of the training and replicate the skill learned, ToT session will be conducted for 20 persons selected from involuntary resettlement practitioners to capacitate as trainer. Safeguards specialists from ADB and other experts will be the resource persons for the ToT programs.

4. Prepare public awareness raising materials on country and ADB safeguard policy, existing legal framework, implementation issues and proposed changes.

5. Implementation Arrangements, Timetable, and Reporting Plan NRM will administer the subproject, with guidance from SAOD and RSES. NRM’s Social Development Officer (Safeguards), Laxmi Prasad Subedi, will lead the sub project team as sub project officer with guidance from NRM Principal Country Specialist. Biswantah Debnath, Sr. Social Development Specialist (Safeguards), RSES; Rokeya Sabur, Sr. Safeguards Specialist, SAOD will provide require advice and review progress reports and outputs; Sunila Ghimire, Associate Project Analyst, NRM; and Bimal Babu Khatri, Senior External Relations Assistant, NRM will be responsible for administrative support. ADB will monitor the subproject activities and outputs through regular review missions led by subproject officer and interactions with the EA/IAs and the consultant team. Overall subproject coordination will be carried out jointly by the NPC subproject coordinator and ADB subproject officer. NPC will be responsible for providing overall guidance and managing the consultants’ outputs, coordination with relevant line ministries and implementing subproject activities. NPC has been appointed a joint secretary as subproject coordinator. The subproject coordinator will be responsible to guide, coordinate and approval of outputs; work with the consultant team; and office accommodation for the consultants. The subproject will establish a project office within NPC with associated costs to include secretarial assistance, communication costs and other administrative assistance for the office. A working group (WG) will be formed by NPC prior to the fielding of the consultants, chaired by the Secretary of NPC and comprising representatives from Ministry of Finance, Ministry of Home Affairs, Ministry of Law and Justice, Ministry of Land Reform and Management, Ministry of Physical Planning, Works and Transport Management, Ministry of Federal Affairs and Local Development, Ministry of Energy, Ministry of Irrigation, Ministry of Environment, Nepal Law Commission, and Team Leader of the sub project consultant. The sub project coordinator will also work as member secretary of the WG and the Team Leader will support member secretary for record keeping and preparing meeting minutes. The WG will meet regularly to help with subproject activities including ensuring timely government feedback and facilitating government decision-making processes; cross-departmental liaison; and assisting with planning of review meetings, workshops, and training programs. The consultants will also be invited to the WG meetings. Consultants will be recruited as individuals and engaged by ADB in accordance with its Guidelines on the Use of Consultants (2010, as amended from time to time)4. The consultants will conduct diagnostic study of existing legal and policy frameworks on involuntary resettlement and technical guidelines, and design and conduct trainings and public awareness materials. Disbursement will conform to ADB’s Technical Assistance Disbursement Handbook (May 2010, as amended from time to time). Procurement of equipment will follow ADB’s Procurement Guideline (April 2010, as amended from time to time). A total of 28.5 person month of consultant inputs is envisaged–5.5 international and 23 national person’s month with intermittent input spread over 15 months. The consultant team will comprise one international resettlement specialist, one international economist cum institutional specialist, and four national specialists on involuntary resettlement; legal; institutional, and training and communication. The subproject will be implemented over a period of 15 months (August 2012 to October 2013), including (i) a 2-months inception period to establish the subproject office and the WG, and hire the consultants; and (ii) 13 months for the delivery of the subproject outputs. Subproject implementation will be monitored through inception, midterm and final reviews by NRM. The consultants will submit an inception report

4 Consultants' engagement under a firm or through an indefinite delivery contract format was considered. However to limit costs; overcome the lack of firms specialized in resettlement; and fit TA activities which are country-specific and integrated in a process entailing assessment, planning, and implementation tasks, individual consultants will be engaged. To manage the complex handling of activities involving so many line agencies, a strong working group will be established at NPC.

within 3 months after the start of the subproject, an interim report consisting progress on diagnostic study, institutional assessment and technical guidelines, and a final report after the wrap-up tripartite meeting. Semiannual reports will be prepared by NRM and submitted to RSES. 6. Subproject Completion and Information Dissemination Prior to subproject completion, the final diagnostic study report and technical guidelines will be shared with relevant stakeholders, including various government agencies, through consultation workshops, for feedback. A subproject completion report will prepared at the end of the subproject implementation period. The subproject completion report will be posted on ADB and government websites. The procedures described in the technical guidelines and policy requirements will be disseminated to the general public through government website and publications. D. Subproject Eligibility Completed Eligibility Criteria Checklist is attached herewith. E. Cost Estimate The total cost of the subproject is estimated at $370,000 of which $350,000 to be financed on a grant basis under ADB’s TA 7566-REG. GON will provide necessary data, office space, counterpart staff, and administration support and cover other costs in kind equivalent to $20,000.

Item Partner(s) Contribution*

TA 7566 Contribution

Total

1. Consultants a) Remuneration and per diem

$179,500 $179,500

i) International consultants (5.5 person months)

$99,000 $99,000

ii) National consultants (23 person months) $80,500 $80,500b) International and local travel $5,000 (in kind) $25,000 $30,000c) Reports and communication** $9,000 $9,0002. Equipment*** $30,000 $30,0003. Trainings and workshop**** $5,000 (in kind) $65,000 $70,0004. Targeted studies, study tours $5,000 (in kind) $15,000 $20,0005. Administration and support costs $5,000 (in kind) $10,000 $15,0006. Contingencies $16,500 $16,500Total Expenses $20,000 $350,000 $370,000

*Contributions in kind are noted as such office space, counterpart staff and administrative support. ** includes transmission cost *** includes purchase of software, computer, printers etc. **** includes 5 workshops, and 3 training sessions. The equipment and materials to be provided under subproject will be procured in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). ADB grant will be disbursed in line with the provisions in its Technical Assistance Disbursement Handbook.

F. Proposed Subproject Monitoring Framework

Design Summary Performance Targets/Indicators Data Sources/Reporting Mechanisms

Assumptions/Risks

Outcome(s) Enhanced involuntary resettlement safeguards system.

The new act incorporates gap filling measures identified under the diagnostic study; The institutional development plan developed through the TA is implemented and the technical guidelines are adopted by relevant government agencies; Better understanding of IR safeguard issues and approaches to address the issues by staff trained.

The new approved act Government’s report Government issued guidelines Evaluation sheets for training

Assumption The government ensures the adoption of the updated law and guidelines prepared under the subproject. Risk Relevant government agencies are reluctant to cooperate and coordinate to adopt new policy and improve legal framework.

Outputs 1. Diagnostic study of

existing legal and policy frameworks on involuntary resettlement conducted.

2. Institutional and capacity development plan prepared

3. Technical guidelines on land acquisition and compensation, and resettlement for 3 key sectors developed

4. Capacity building measures for IR implementation conducted.

Diagnostic study report and assessment of financial implication of the draft Policy and land acquisition act 1977 ready for NPC (by May 2013) Institutional needs assessment undertaken and capacity development plan prepared (by April 2013) Technical guideline on land acquisition and involuntary resettlement for road, urban and energy sector prepared (by June 2013) 60 persons from Key ministries and persons working in resettlement received capacity development training (by July 2013) 20 persons trained as trainer on involuntary resettlement (by August 2013)

Final report on diagnostic study submitted to NPC. Subproject review missions and reports Subproject reports and documents Report and proceedings of consultation meetings and training

Assumptions NPC and line ministries consider subproject implementation a priority. The subproject working group provides timely advice and guidance. Consensus is reached through consultations among key stakeholders. Risks Political turbulence affects timely endorsement of act and guideline by cabinet.

Activities with Milestones (assuming August 2012 as start date) General 1. Establish working group (by weeks 2) 2. Mobilize team of consultants (by month 2). 3. Prepare inception report and organize inception workshop (by month 3). 4. Organize midterm report and review meeting (by month 7). 5. Finalize overall subproject report summarizing findings and experiences (by month

14).

Inputs ADB: $350,000 Government: $20,000 (support in kind) Total: $370,000

Output 1 1. Review of involuntary resettlement policy, legal and regulatory provisions (by

month 7) 2. Conduct comparative analysis of the land acquisition act 2011 and draft land

acquisition, compensation and resettlement policy against international best practices (by month 8)

3. Conduct analytical assessment on financial implication of draft land acquisition, compensation and resettlement policy and the draft land acquisition act (by month 8)

4. Conduct review of major constraints on cadastral mapping and ownership transfer for the land acquired by development projects (by month 8)

5. Prepare recommendations for improvements of the land acquisition act 1977 (by month 9).

6. Prepare and submit final report and recommendations of the diagnostic study and comparative analysis to the National Planning Commission (by month 10)

Output 2 1. Conduct assessment of the existing institutional capacity and need assessment (by

month 7) 2. Prepare need assessment report (by month 8) 3. Prepare institutional and capacity development plan (by month 9)

Output 3 1. Assess existing regulatory framework and relevant acts; and guidelines and

prepare consultative document (by month 6) 2. Draft sectoral guideline for 3 key sector as selected by WG (by month 9) 3. Conduct stakeholder consultative workshops (by month 10) 4. Conduct a study tour to infrastructure project inside the country (by month 10). 5. Finalize the draft technical guideline (English and Nepali) (by month 11).

Output 4 1. Prepare training materials and manuals (English and Nepali) and make available

online on the NPC and ADB websites (by month 10). 2. Conduct training on resettlement for relevant stakeholders (by month 12). 3. Conduct Training of Trainers on involuntary resettlement (by month 13) 4. Prepare awareness materials (English and Nepali) and make available online on

the NPC websites (by month 13).

PREPARED BY: Laxmi Prasad Subedi, Social Development Officer, NRM/SARD 06 July 2012 ENDORSED BY COUNTRY DIRECTOR: Kenichi Yokoyama, Country Director, NRM/SARD Approved by Director General: Juan Miranda, DG, SARD

Appendix 1

TA 7566-REG: Strengthening and Use of Country Safeguards Systems ELIGIBILITY CRITERIA CHECKLIST

Eligibility Criteria State how the proposed subproject

meets the TA’s subproject eligibility criteria

RSES Comments

1.) Intervention is in one or more of the TA's priority areas (please mark one or more of the following criteria):

[ X ] legal and regulatory framework, rules, and/or procedures on environmental assessment and management,5

involuntary resettlement, and Indigenous Peoples safeguards

The sub project will fund technical assistance to conduct wider stakeholder consultation and conduct diagnostic study and make recommendations for amending existing land acquisition act which improves land acquisition and resettlement planning. Preparation of technical guideline on land acquisition and resettlement is one of the outputs of the subproject.

[ X ] institutional strengthening and capacity development of relevant government institutions or agencies, CSOs, and/or other stakeholder groups to implement, enforce, and comply with national laws and regulations on environmental assessment and management, involuntary resettlement, and Indigenous Peoples; 6

The subproject will conduct institutional capacity assessment and will recommend capacity development plan based on newly approved national policy on land acquisition, compensation and resettlement.

[ ] state-owned and/or private sector companies' environmental and social management systems; 7

[ ] public awareness and participation in environmental and social assessment, planning, and implementation processes;

[ X ] targeted training programs and/or studies on environmental and social safeguards for governments including the judiciary, CSOs, media, academia, and/or other stakeholder groups;

The subproject will provide capacity enhancement training for government staff and other stakeholders. Public awareness on safeguards policy principles and requirements will be increased through awareness campaign, materials and stakeholder consultations.

[ ] demonstration activities (“South- South initiatives", such as through twinning arrangements).

2.) The subproject is fully in line with and supportive of DMCs' priorities identified in their development plans and programs and with ADB's country partnership strategies.

Yes, This TA support has been requested by government for the enforcement of policy changes made in land acquisition and resettlement. The subproject will support to improve effectiveness of public delivery system in line with CPS.

3.) The subproject balances the use of international and national consultants

There is a balance between international and national consulting input. The national

5 This may include the environmental assessment process, pollution prevention and abatement, biodiversity conservation and

sustainable natural resources management, occupational and community health and safety, and physical cultural resources. 6 This may include activities for improved institutional arrangement and administrative procedures, inter-agency coordination and

governance, and for effective compliance monitoring and enforcement. 7 This may include activities for enhanced corporate environmental and social policies, project safeguard review, and monitoring and

reporting system.

and emphasizes the transfer of international experience and knowledge to governments, CSOs, and staff of other domestic organizations in the DMC.

consultant will deliver the key activities with assistance from international expertise and experiences.

4.) The subprojects is complementary but does not substitute nor duplicate ADB ongoing or pipeline activities (i.e., the TA does not finance subprojects that are normally financed by project preparatory TA work or by other funds managed by ADB, including the Japan Special Fund).

The subproject will complement past ADB TA activities without duplicating ongoing and pipeline ADB activities.

5.) The proposed subproject cost does not exceed $500,000.

The proposed subproject is estimated to cost $370,000 of which $350,000 to be covered by TA 7566.

6.) Counterpart funds for the subproject (in cash and/or in kind) are expected to be committed by the DMC.

An additional $20,000 is expected to be committed by government in kind.

7.) The DMC has been requested to endorse the TA and to appoint a focal point.

The government endorsed the TA and appointed focal point. See attached form.

PREPARED BY:

Laxmi Prasad Subedi, Nepal Resident Mission, SARD 06 July 2012 REVIEWED BY RSES TA Team: (Name, Signature and Date)

Appendix 2 - OUTLINE TERMS OF REFERENCE FOR THE CONSULTANTS A. Consulting Services Requirements 1. Strengthening and Use of Country Safeguard System (the TA) for this subproject will provide the government of Nepal with 5.5 person-months of international consulting services and 23 person-months of national consulting services (collectively referred to as the Consultant). The consultant expected to commence the work in August 2012, and to complete all the required tasks in about 15 months. The consultant will be guided and supported by National Planning Commission (NPC) and the ADB subproject team. 2. The main outputs of the subproject include (i) Diagnostic study of the existing legal and policy frameworks on involuntary resettlement conducted, (ii) Institutional and capacity development plan prepared (iii), Technical guidelines on land acquisition and compensation, and resettlement for 3 key sectors developed, and (iv) Capacity building measures for IR implementation conducted. ADB is executing agency of the TA: 7566-REG and NRM and NPC are implementing agencies for the subproject. NPC will form a working group including relevant ministries and government line agencies. NPC will appoint subproject coordinator to provide overall guidance and manage consultant’s output and coordination with relevant line ministries. The outline terms of reference of the Consultants are described below. a. Resettlement Specialist/ Team Leader (National)

The national resettlement specialist will serve as a Team Leader of the consultant team. The Resettlement Specialist/ Team Leader (10 months) should have post graduate degree in social sciences. The Team Leader will have over 7 years experience in the field of involuntary resettlement planning, implementation and policy formulation. Experience in preparation of technical guideline will also be required. Experience in ADB and WB funded projects in Nepal and working experience with government is preferred. With support of the other consultants, s/he will have overall responsibility to implement the subproject activities, including:

1. Guide, coordinate, and supervise the inputs of each individual consultant on the team, and take the responsibility for preparing and finalizing the reports on behalf of the team.

2. Coordinate the inputs from GoN and ADB, and to liaise with relevant stakeholders working in safeguard planning and implementation.

3. Participate in working group (WG) meeting and support member secretary of WG for record keeping and prepare meeting minutes.

4. Review relevant policies, laws and examples on resettlement and synthesize the lesson learnt.

5. Support international resettlement specialist for diagnostic and comparative study on involuntary resettlement policy, laws and regulations. Assess any specific practices adopted by government to address gap between international best practices on involuntary resettlement.

6. Coordinate and conduct regional and national level consultation workshop with all stakeholders to discuss the draft technical guideline and collect views for the improvement of land acquisition act.

7. Provide guidance, supervise and over viewing research activities on land valuation practices and methodologies in Nepal for land acquisition; and cadastral mapping and deed transfer problems and prospects in development projects under sub project.

8. Analyze the study reports and recommend appropriate valuation methodology for land and property acquisition.

9. Provide support to legal Specialist to prepare recommendation for improvement in the land acquisition act 1977.

10. Review institutional and capacity development plan and make contribution to finalize the institutional and capacity development plan.

11. Draft technical guideline on land acquisition and resettlement based on best practices and lesson learnt.

12. Coordinate and facilitate field visit of working group member including relevant government officers and prepare field visit note.

13. Ensure that all necessary approvals are obtained from the Government and ADB with respect to technical guideline and capacity development plan.

14. Draft the subproject completion report. b. Resettlement Specialist (International)

The Resettlement Specialist (international, 4 person-months) should have over 10 years international experience in the field of involuntary resettlement planning, implementation and policy formulation. Experience in preparation of technical guideline will also be required. Experience in ADB and WB funded projects in Nepal and working experience with government is preferred. Her/his responsibilities will include the following:

1. Review relevant policies and international best practices in resettlement planning and management including land administration and valuation methodologies as well as guidelines and synthesize the lesson learnt.

2. Conduct diagnostic study on involuntary resettlement policy, laws and regulation including comparative analysis of the land acquisition, compensation, and resettlement policy and land acquisition act 1977 against international best practices and make key recommendations to make the act consistent.

3. Prepare and submit final report and recommendations of the diagnostic study and comparative analysis to the National Planning Commission.

4. Review international best practices on land administration and valuation methodologies covering different sectors and recommend appropriate valuation methodology based on replacement cost principle.

5. Review institutional and capacity development plan on IR safeguards and make contribution to finalize the institutional and capacity development plan.

6. Review the draft technical guideline prepared by local consultants in coordination with NPC and WG and finalizes it ensuring that it is in consistent with the guideline of major donor partners.

7. Participate in final national consultative workshop and WG’s meeting to discuss the draft technical guideline and finalize based on the consensus.

8. Review training and public awareness material prepared by national consultant and provide necessary guidance to make consistence with law and technical guideline.

9. Review the draft sub project completion report and finalize it. 10. Assume overall responsibility for quality assurance of the technical guideline and other

reports prepared under subproject.

a. Economist cum institutional specialist (International)

The Economist cum institutional specialist (international, 1.5 months) will have a degree in economics, management or equivalent qualification and over ten years of international experience in financial and institutional analysis, need assessment systems with experience on undertaking financial implication of policy changes. A sound familiarity with international practices on assessment of financial implication of any policy changes including safeguards policy. The

consultant with a good understanding of international best practices in environmental and social safeguards and prior experience in Nepal or South Asia would be an asset. Her/his specific responsibilities will include the following:

1. Conduct a review and analysis of relevant laws and other regulations for land acquisition, resettlement and land administration and management in Nepal.

2. Review the draft land acquisition, compensation and resettlement policy and Land Acquisition Act 2011 and analyze financial implication of such policy reforms. .

3. Coordinate the inputs from GON and ADB, and to liaise with relevant stakeholders working in financial, institutional, safeguard planning and implementation aspects.

4. Undertake an assessment of the financial implication of draft resettlement policy and its provisions taking into account compensation, resettlement assistances, survey and studies, management and institutional aspects; and will provide the recommendation for the alternatives to mitigate the implications.

5. Advice NPC on the short, medium and long term financial implication of the draft Policy and Act.

6. Review the institutional arrangement and capacity of government agencies responsible for infrastructure development

7. Review the need assessment report including capacity development plan prepared by national consultant and provide recommendations for its improvement.

8. Prepare an assessment report that include, but not limited to recommendations on the issues identified on financial implications, potential short and long term benefits of the draft policy and institutional arrangements.

b. Legal Specialist (national)

The Legal Specialist (national, 3 person-months) should have over 7 years experience in drafting policy documents and acts. Experience in document and legal review and reforms will also be required. Experience in involuntary resettlement is preferred. Her/his responsibilities will include the following:

1. Review relevant policies, laws and best practices in land acquisition, resettlement planning and management.

2. Coordinate the inputs from GoN and ADB, and to liaise with relevant stakeholders to make recommendation to improve land acquisition act.

3. Conduct diagnostic study on legal aspect of land acquisition act 1977 and draft land acquisition, compensation and resettlement policy against international best practices and provide final input on legal aspect to resettlement specialist to prepare final report of the diagnostic study.

4. Participate in working group meetings. 5. Provide support to resettlement specialists on legal aspect to finalize the technical

guideline on land acquisition and resettlement. 6. Participate in consultation meetings, workshops and dialogue with stakeholders to discuss

the issue, possible solution and implication for policy enforcement and changes in Act. 7. Prepare recommendation for improvements of the land acquisition act. 8. Assist the team to carry out the subproject activities as needed.

c. Institutional Specialist (national)/Deputy Team Leader

The Institutional Specialist (national, 6 person-months) should have over 7 years experience in developing technical guidelines, institutional assessment and financial analysis. Experience in implementation of involuntary resettlement in infrastructure development is preferred. Her/his responsibilities will include the following:

1. Review relevant policies, laws and best practices in land acquisition, resettlement planning and management.

2. Review the institutional arrangement and capacity of government agencies responsible for infrastructure development.

3. Conduct comprehensive assessment of institutional capacity to implement new policy requirements and proposed legislative changes.

4. Review best practices on land administration and valuation methodologies covering different sectors in national level and recommend appropriate valuation methodology based on replacement cost principle.

5. Coordinate the inputs from GoN and ADB, and to liaise with relevant stakeholders to finalize the guideline and institutional capacity development plan.

6. Support international economist for the assessment on financial implication of draft land acquisition, compensation and resettlement policy and the draft land acquisition act.

7. Prepare need assessment report including capacity development plan. Provide general recommendations for training and other capacity development measures to strengthen implementation.

8. Participate in consultation meetings, workshops and dialogue with stakeholders on technical guideline and institutional capacity development plan.

9. Review reports on cadastral mapping and deed transfer study. Link findings of the report to institutional development plan.

10. Work jointly with resettlement specialist to draft and finalize the technical guidelines on land acquisition and resettlement.

11. Provide advice and support on implementation of institutional capacity development plan. 12. Liaise with relevant stakeholder to obtain necessary approvals from the Government with

respect to technical guideline, and institutional capacity development plan. 13. Participate in working group meeting. 14. Assist the team to carry out the subproject activities as needed.

d. Training and communication specialist (national)

The Training and Communication Specialist (national, 4 person-months) should have over 7 years working experiences in the capacity development and at least 5 years experience of need assessment, designing, curriculum development and training evaluation and conducting capacity development trainings, producing training manual and materials, sound knowledge and skills on facilitation, communication and reporting of trainings, workshops and seminar etc. Experience in ADB and WB funded projects in Nepal and working experience with resettlement is preferred. Her/his responsibilities will include the following:

1. Review relevant policies, laws and best practices in land acquisition, resettlement planning and management and technical guidelines.

2. Review institutional capacity development plan prepared by consultants and provide required input on training and communication aspects.

3. Review the draft technical guideline prepared by resettlement specialist and provides necessary input regarding training and awareness raising.

4. Conduct training need assessment of staff in government agencies responsible for infrastructure development.

5. Design, plan, manage and coordinate all capacity building activities to the government agencies and project staff and other relevant stakeholders on land acquisition, compensation and resettlement planning and implementation.

6. Develop training manuals as well as guidelines and awareness raising material involuntary resettlement safeguards and finalize in consultation with stakeholders.

7. Prepare training modules/curriculum on involuntary resettlement planning, implementation and monitoring.

8. Coordinate and conduct trainings and consultation workshops at national and regional level; participate in WG’s meetings.

9. Assist the team to carry out the subproject activities as needed.

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