final draft abbreviated resettlement action plan for

i

Skills Development Project

(SDP)

Credit No . IDA : 131660

FINAL DRAFT

ABBREVIATED RESETTLEMENT ACTION PLAN

FOR PROPOSED SITE OF

TOURISM & HOSPITALITY SKILLS DEVELOPMENT CENTRE

AT DUNDUZU, MZUZU, MALAWI.

The University Registrar,

Mzuzu University

Private Bag 201

Luwinga

Mzuzu

Phone : 265 -1 – 320 777

Facsimile: 265 -1 – 320 505

June 2016

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Table of Contents

Executive summary iv

1.0.0 BACKGROUND ON THE PROJECT AREA AND THE PROJECT. 1

1.1.0 The project area.

1.2.0 The proposed project

1.3.0 Background to the preparation of Abbreviated Resettlement Action Plan .

1.4.0 Rationale for Abbreviated Resettlement Action Plan

1.5.0 Aim and objectives of Abbreviated Resettlement Action Plan

1.6.0 Methodology on preparation of Abbreviated Resettlement Action Plan.

1.7.0 Limitations and gaps in the report

2.0.0 DESCRIPTION OF PROJECT AFFECTED PEOPLE AND INVENTORY OF ASSETS ON THE SITE. 5

2.1.0 Cut – off date for census of project affected households.

2.3.0 Identification of project affected households

2.4.0 Description of socio-economic characteristics of project affected households.

2.5.0 Inventories of assets on the site.

3.0.0 BRIEF DESCRIPTION OF POLICIES OF WORLD BANK AND GOVERNMENT OF MALAWI

AND IMPLICATIONS ON COMPENSATIONS. 9

3.1.0 Review of policies on land and property compensations in Malawi.

3.2.0 Involuntary Resettlement Policies of the World Bank

3.3.0 Comparisons and gaps between policies of World Bank and Malawi on compensations

3.4.0 World Bank Safeguards and Implications on member countries.

3.5.0 Assessment of compensation gaps between entitlements under Resettlement Policy Framework

and compensation paid by Malawi Government.

3.6.0 Principles of fair compensations to project affected households

.

4.0.0 DESCRIPTION OF COMPENSATION ENTITLEMENTS AND RESETTLEMENT ASSISTANCE TO

PROJECT AFFECTED PEOPLE. 13

4.1.0 Description of compensation entitlement to project affected households.

4.2.0 Recommended Compensation Packages to project affected households.

4..3.0 Description of Resettlement Assistance to project affected households

5.0.0 GREVIENCE REDRESS MECHANISM. 14

5.1.0 Simple procedures for grievance redress mechanism

6.0.0 IMPLEMENATION OF ABBREVIATED RESETTLEMENT ACTION PLAN 15

6.1.0 Description of institutions and roles on Abbreviated Resettlement Action Plan

6.2.0 Timetable for implementation of Abbreviated Resettlement Action Plan

6.3.0 Budget for implementation of Abbreviated Resettlement Action Plan

7.0.0 MONITORING IMPLEMENTATION OF ABBREVIATED RESETTMENT ACTION PLAN 19

8.0.0 SUMMARY RECOMMENDATIONS. 21

8.1.0 Payment of compensations to project affected households

iii

8.2.0 Resettlement Assistance to project affected households.

References 22

Tables

Table 1 : Outline of selected differences on management of resettlement between Involuntary Resettlement Policies and Laws of Malawi. 12

Table 2: Timetable for implementation of Abbreviated Resettlement Action Plan 17 Table 3 Budget for implementation of Abbreviated Resettlement Action Plan 18 Table 4: Monitoring Plan 20 Annexes. Annex 1: Census for project affected households on the project site 22 Annex 2: Census of pieces of land and land uses by project affected people. 24 Annex 3: Socio-economic characteristics of project affected households 25 Annex 4: Inventory of assets of project affected households. 27 Annex 5: Characteristics of housing conditions of project affected persons. 28 Annex 6: Description of replacement values of building properties for project affected people 29 Annex 7: Records of payment of compensations for buildings properties and trees. 31 Annex 8: Summary of projected maize yields from gardens of project affected persons 33 Annex 9: Summary of projected business losses from gardens and recommended disturbance allowance. 34 Annex 10: Terms of reference for Abbreviated Resettlement Action Plan 35 Annex 11: List of people consulted in preparation of Abbreviated Resettlement Action Plan 37 Annex 12: Copy of minutes at meeting with project affected households. 38 Annex 13: Summary of entitlements for various categories of project affected people. 40

Acronyms ARAP : Abbreviated Resettlement Action Plan DC : District Commissioner Ha : hectare IDA : International Development Association MZUNI : Mzuzu University NCHE : National Council for Higher Education OP : Operational Policy OPC : Office of President and Cabinet

iv

EXECUTIVE SUMMARY

1.0 This document serves as an Abbreviated Resettlement Action Plan for the site earmarked for

construction of Tourism and Hospitality Skills Development Centre under Mzuzu University. The

project area is within peri-urban of City of Mzuzu. The affected area is about 4.668 hectares of

customary land. Mzuzu University is the second public university in Malawi.

The proposed Tourism and Hospitality Skills Development Centre will be funded under Skills

Development Project (Credit IDA 131 660), financed by a loan from International Development

Association (IDA) of the World Bank Group. Skills Development Project covers projects in tertiary and

skills development institutions in Malawi.

The aim of the Abbreviated Resettlement Action Plan is to guide on compensation and re settlement

assistance for project affected households. The project affected people are rural resource poor people

who have been on the site for over 70 years. The affected area is about 4.668 hectares of customary

land. Project affected households legally own this land through customary land tenure. Part of land

has been used for construction of houses and other properties, and part of the land is used for

farming.

2.0 Malawi Government acquired 3.3 hectares of customary land at Dunduzu area (peri - urban of City of

Mzuzu) sometime in 2014 for the development of Tourism and Hospitality Skills Development Centre by

Mzuzu University. Five household owned land within this 3.3 hectares under customary land tenure basis.

Two of the five households lived on the site – with houses and gardens. Two other households had gardens

for food crops and timber trees. One affected household had uncompleted structures for a lodge (along the

main road).

In September 2015, Malawi Government went ahead to compensate the 5 affected households for building

improvements, timber trees and fruit trees under the provisions of Land Acquisition Act of Laws of Malawi,

and not on principles set forth in Resettlement Policy Framework of Skills Development Project. As a result,

an audit was conducted by the World Bank Mission in December 2015, and the preparation of Abbreviated

Resettlement Action Plan came out as a recommendation. The preparation and implementation of this

Abbreviated Resettlement Action Plan will be the basis of adherence to principles of compensation and

resettlement as outlined in the Resettlement Policy Framework of the project.

3.0 The acquisition of 3.3 hectares by Mzuzu University for the proposed centre, and subsequent displacement

of 5 local households from the project area has triggered Involuntary Resettlement Policies of World Bank

Group. The project affected households were abruptly stopped from farming on the site. Consequently, five

households lost customary land (4.668 hectares), building properties, maize gardens, fruit and timber trees

on the site.

The aim of Involuntary Resettlement Policies (OP 4.12) is to safeguard local people from adverse social

effects from World Bank funded projects. This policy demands that in design and implementation of World

Bank funded project, member countries (such as Malawi) must avoid or minimize forced displacement of

local people through alternative project designs. However, where involuntary resettlement is unavoidable,

the policy stipulates that adequate compensation, resettlement assistance and rehabilitation assistance

measures must be provided to displaced persons whether they settled on the site legally or

illegally or whether the displaced people are doing business on the site illegally or illegally.

v

4.0 The Abbreviated Resettlement Action Plan (ARAP) has been prepared to address negative social and

economic impacts on the 5 project affected households (38 persons). The plan has been prepared in line

with Section 22 of Involuntary Resettlement Policies (OP 4:12) and section 5.2.0 of Resettlement Policy

Framework of The Skills Development Project. This safeguard plan is applicable where a bank funded

project triggers the displacement of smaller number of households (less than 50 households).

The preparation of plan followed multifaceted approaches in order to enhance participation of all

stakeholders. One strategy involved various meetings/discussions with key stakeholders to the project and

compensation exercise. This step involved review of existing records, collection of data and information from

the client, project affected people and government agencies. The second strategy involved field surveys and

observations on and around the project area. And the third strategy involved interviews and focus group

discussions with project affected households.

5.0 Project affected people are rural local people. The ages of household heads range from 18 years (youngest)

to 79 years (oldest). Project affected people live in semi-permanent and permanent houses. Pit latrines and

bathrooms (outside the houses) are used for sanitation services. Refuse pits within residential premises are

used for disposal for solid wastes. Results of census and socio-economic surveys of project affected

persons are presented in annexes 3-4

6.0 Census and field surveys identified five categories of assets for project affected households on the site

These are: seven pieces of customary land ( about 4.668 hectares), maize gardens, eight building

properties ( two houses, four uncompleted chalets for a lodge; two pit latrines, a kitchen, a borehole and two

water tanks).Other assets identified are: timber and fruit trees. Project affected people were already

compensated by Malawi Government for all building properties (houses, chalets, pit latrines, water tanks)

and trees. Records of payment are attached in annex 7.

7.0 In line with principles in Resettlement Policy Framework of the project and Involuntary Resettlement Policies

(OP4:12), the 5 project affected households are entitled to six forms of compensations from Malawi

Government in view of displacement. These are:

a) Compensations for loss of eight buildings (chalets, houses, pit latrines) on the site. The project

affected households are entitled to compensations at replacement values.

b) Compensations for loss of timber trees and fruit trees on the land

c) Compensations for loss of customary land by 5 project affected households.

d) Compensations for loss of maize yields from maize gardens on the site. The 4 affected

households are entitled to projected maize yields because they lost access to land and use of the

land for maize production (farming business).

e) Compensations for loss of labour input into the gardens. The 5 project affected households used

family labour and hired labour (occasionally) to produce maize from the gardens. The labour input

lost is that used in the preparation/clearance of land on the site.

f) Compensations for transport allowance on top of construction costs for building properties .The

transport allowance would cater transport costs for movement of construction materials from the

City of Mzuzu to new sites of re-construction of houses.

Compensations for items 6.0 (a) and 6.0 (b) were already paid at open market values to projected

affected people in September 2015. Details of payment are attached in annex 7.

vi

7.0. Key recommendations on outstanding compensations to project affected households.

a) Compensate the 5 project affected people for losses of customary land. Compensations to be

based on replacement values as recommended in column 6 and 7 of annex 2

b) Compensate the 4 project affected households for loss of maize yields from the gardens.

Compensations to be based on estimated maize yields as outlined in column 5 and 6 of Annex 8

c) The payment of transport allowance to project affected people to cater transport costs for

movement of construction materials from the City of Mzuzu to new sites of re-construction of

houses. Basis of payment is outlined in column 8 of annex 6

d) Consider employment opportunities at the construction site for some qualified members of project

affected households.

1

1.0.0 BACKGROUND ON THE PROJECT AREA AND THE PROJECT

1.1.0 The Project Area.

The project area related to this Abbreviated Resettlement Action Plan is a site for the proposed Tourism and

Hospitality Skills Development Centre at Dunduzu within the peri-urban area of City of Mzuzu, Northern

Malawi. The site is along Mzuzu – Ekwendeni Road (M1), about 3 kilometres from main Mzuzu

University campus. The proposed centre will the first purpose built management institute of tourism

and hospitality services in Malawi. The centre will offer higher education and training for much need

human resources in tourism and hospitality sector in Malawi and SADC countries.

1.2.0 Brief description of the project

The proposed project is Tourism and Hospitality Skills Development Centre under Mzuzu University. Main

development activities will include construction of a multi-storey centre building (about 5,000 square metres

in floor space) and ancillary infrastructure. Other components will be construction of bitumen service roads,

access road and car park. Upon completion, the Tourism and Hospitality Skills Development Centre will

consist of various hospitality services related facilities for student training purposes. The facilities will

include: 15 guest rooms, restaurant, kitchen, 100 seater conference room, two seminar rooms, modern

laundry room, staff offices

The estimated project cost is MK1.5 billion. The project will be funded under Skills Development Project,

financed by a loan from International Development Association (IDA) of the World Bank Group. Skills

Development Project covers projects in tertiary and skills development institutions in Malawi. Skills

Development Project intends to improve capacity of institutions to produce high quality professionals with

relevant knowledge and skills that meet the demands of country’s tourism labour market and economy in

line with the Malawi Growth and Development Strategy.

1.3.0 Background to the preparation of Abbreviated Resettlement Action Plan for the project.

Malawi Government acquired 3.3 hectares of customary land at Dunduzu area (peri - urban of City of

Mzuzu) sometime in 2014 for the development of Tourism and Hospitality Skills Development Centre by

Mzuzu University. Five household owned land within this 3.3 hectares under customary land tenure basis.

Two of the five households lived on the site – with houses, timber trees, fruit trees and gardens. Two other

households live outside the site but had timber trees, fruit trees and gardens for food crops. One affected

household had uncompleted structures for a lodge development (along the main road). The inventory of

assets is provided in annex 4 of this report.

In September 2015, Malawi Government went ahead to compensate the 5 affected households for building

improvements, timber trees and fruit trees under the provisions of Land Acquisition Act of Laws of Malawi,

and not on principles set forth in Resettlement Policy Framework of Skills Development Project. As a result,

an audit was conducted by the World Bank Mission in December 2015, and the preparation of Abbreviated

Resettlement Action Plan came out as a recommendation. The preparation and implementation of this

Abbreviated Resettlement Action Plan will be the basis of adherence to principles of compensation and

resettlement as outlined in the Resettlement Policy Framework of the project.

2

1.3.0 Rationale for Abbreviated Resettlement Action Plan for the project

The acquisition of 3.3 hectares by Mzuzu University, and subsequent displacement of 5 project affected

households (38 persons) from the project area has triggered Involuntary Resettlement Policies of World

Bank Safeguards Policies. The aim of Involuntary Resettlement Policies is to safeguard local people from

adverse social effects from World Bank funded project. This policy demands that in design and

implementation of World Bank funded project, member countries (such as Malawi) must avoid or minimize

forced displacement of local people through alternative project designs. However, where involuntary

resettlement is unavoidable, policy encourages community participation in planning and implementing

resettlement. In addition, the policy stipulates that adequate compensation, resettlement assistance and

rehabilitation assistance measures must be provided to displaced persons whether they settled on

the site legally or illegally or whether the displaced people are doing business on the site illegally

or illegally.

In order to address to social negative impacts to the 5 project affected households (38 persons), an

Abbreviated Resettlement Action Plan (ARAP) has to be prepared in line with Section 22 of

Involuntary Resettlement Policies (OP 4:12). This safeguard plan is applicable where a bank funded

project triggers the displacement of smaller number of households (less than 50 households). A

detailed Resettlement and Compensation Plan is prepared in a situation where a bank funded pr oject

triggers the displacement of over 50 project affected households in the site.

1.4.0 Aim and objectives of Abbreviated Resettlement Action Plan

The aim of the Abbreviated Resettlement Action Plan is to guide on compensation and re settlement

assistance for the 5 project affected households (38 persons) on the project area. Specific objectives

are:

To carry out census of all project affected people on the project area.

Identify affected assets for compensation to project affected people.

To recommend compensation entitlements and resettlement assistance to project affected

households.

To identify institutions responsible for implementation of Abbreviated Resettlement Action

Plan.

To recommend grievance redress mechanisms for possible disputes.

To prepare a monitoring plan on compensation and resettlement assistance.

To prepare a timetable and budget for compensation related activities.

1.5.0 Methodology on preparation of Abbreviated Resettlement Action Plan.

The preparation of Abbreviated Resettlement Action Plan has followed multifaceted approaches in

order to enhance participation of all stakeholders. One strategy involved various meetings/discussions

with key stakeholders to the project and compensation exercise. This step involved review of existing

records, collection of data and information from the client, project affected people and government

agencies. The second strategy involved field surveys and observations on and around the project

area. And the third strategy involved interviews and focus group discussions with project affected

households. The following steps highlights activities undertaken and data/information collected during

the exercise:

Step 1: Discussions with National Council on Higher Education (NCHE) and Mzuzu University on

procedures of land acquisition on the site, the procedures of notice to project affected people, list of

3

projected affected households on the site. Data collected included details of size of land acquired, list

and contact details of projected affected household heads

Step 2: Discussions with Department of Land and Valuation on policies and laws applicable to urban

land administration, land tenure on the site; definition of compensation entitlements to project affected

households on urban land. Data collected included maps of the site and official land use of the site.

Step 3: Interviews and discussions with heads of projected affected households . These meetings and

discussions took place at project area and at their residential premises. Two meetings took place early

May, 2016. The objectives of meetings were to give chance to project affected people to show

gardens, to highlight their expectations and concerns. Some of information obtained was: number

gardens for each of the project affected household, name of crops grown on the site, period of

cultivation on the site and type of labour input used in the cultivation.

Step 4: Demarcation of gardens sizes for project affected households on the site . Land Surveyor

carried out the demarcation of all gardens for project affected households on the site.

Project affected household heads actively participated in the delineation of boundaries of all gardens.

Advanced Geographical Position System was used to survey the gardens.The equipment used was

KolidaK9-TGPS receivers in Real Time Kinematic Mode. The survey of boundaries of gardens was

based on information from individual owner of gardens.

Step 5: Census and socio-economic surveys of project affected households

This exercise involved the following activities:

a) Collection of detailed personal data/information for project affected households and pieces of land

on the site. The data/information was collected through interviews and circulation of questionnaire

to all project affected people. Results of census and pieces of land on the site are presented in

annex 1 and 2 of this report.

b) Collection of housing characteristics of project affected households. This exercise covered

characteristics of dwelling units, water and sanitation facilities among others. Annex 3 summarise

data on housing conditions of the project affected people.

c) Collection of data/information on socio-economic characteristics of project affected households.

This exercise covered size of households, age of household head, main occupation, education

characteristics of household head, marital status of household head, sources of income of

household head among others. Data and information was collected through interviews and

questionnaire methods. Annex 3 and 5 summarise the results of socio-economic surveys.

Step 6: Debriefing of project affected household heads on the preliminary findings of the study . This

exercise involved presentation of main findings to project affected people. Project affected people

were given opportunity to make comments/concerns and suggestions on some of points presented.

Step 7: Calculations of replacement values for building properties on the site. These are based on

market values for materials for re-construction of structure. Results are outlined in annex 5

Step 8: Calculations of compensation packages for maize yields from gardens of affected households.

Compensation package is based on crop produce from the gardens. Calculations have used the sizes

of gardens and estimated high maize yield per hectare. The recommended compensation packages

are outlined in column 4-6 in annex 8 .

4

Step 9: Compilation of draft report and Abbreviated Resettlement Action Plan . This step focused on

synthesizing and processing data, views and information captured in steps 1 to 8.

1.6.0 Limitations and gaps in the report

The information presented in this report is by and large consistent with the data and information gathered

through the various sources and approaches outlined above. However, just as in any field based studies,

the exercise experienced a number of constraints and as a result, there could be some gaps of information

in the report as the consultants could not exhaust the collection of all primary data.

The sizes of maize gardens are more of estimates as they have been based on rudimentary boundaries

shown by household heads. The boundaries could not be seen properly as the area has not been cultivated

this crop season. There are also gaps in data for household income for some project affected households.

This is because some of the households were not willing to reveal sources of income and the estimated

monthly and annual income. In addition, there is gap for information for two project affected household. In

this regard, while the findings and issues advanced in this report reflect the general views and feelings of

some selected people, they may not cover the specific issues from some unique situations.

2.0.0 DESCRIPTION OF PROJECT AFFECTED PEOPLE AND INVENTORY OF ASSETS ON THE SITE.

2.1.0 Cut off date for census of project affected households.

A cut off date for census of project affected households was agreed with the project affected people as May

14, 2016. It was agreed with the affected people that the target of the census is those households had

claims of assets or use of land before and by May 14, 2016. The defined area of target was land acquired

by Mzuzu University. No new claims from other people or households would be entertained after this date.

The list of the households was provided by one of representative of the project affected households. A roll

call was made at site, and the list also was verified by all household heads except one.

2.3.0 Identification of project affected households.

Project affected people on the project site are local people. Two households live outside the project area,

and three households live at the site. A census of the household heads was conducted at their residential

premises. The census covered the following information:

a) Physical head count of the household head. b) Full names of household head c) Details of contact address and phone details d) Gender of household head e) Size of household, gender of children f) Age of household head)

Annex 1 and 2 summarise the results of census of 5 project affected people in the area. All project affected households (5 households) are male headed households (100% of total). In terms of age, the ages of household heads ranges from 18 years (the youngest) to 79 years (the oldest).

2.4.0 Description of socio-economic characteristics of project affected households.

The aim of socio-economic surveys was to understand the social structure and set up of the affected

people, and also understand the economic activities of the households. Information collected covered the

following:

a) Size of households.

5

b) Marital status of of household heads

c) Source of income for household.

d) Level of education of household head

e) Conditions of dwelling houses of the households

f) Access to municipal services; potable water, sanitary services and electricity within the residential

premises.

Annex 3 and 5 summarise the socio-economic characteristics of the 5 project affected households. Analysis

of the results indicates that the project affected households have big households sizes. The sizes of

households range from 4 persons (smallest family) to 11 persons (largest family). In terms of marital status,

there are four households (80%) headed by married household heads.

Analysis of current occupation indicates that three household heads (60%) are employed and

one household head is business person and one household head is a farmer.

Sources of income to project affected households include employment, farming and businesses. Four

households are generate some income from family businesses in one way or the other.

l project affected households live in semi-permanent and permanent urban houses in the area. The houses

are constructed of burnt bricks, cement, iron sheets, plastered walls and floor. Households use shallow

wells and rivers as sources of water.

Results on sanitation surveys indicate that all 5 project affected households (38 persons) use pit latrines and

bathrooms outside the houses for sanitary services..

2.5.0 Inventories of assets on the site.

Census and field surveys of the project area has recorded six categories of assets for the 5 project affected

households. The assets are as follows:

a) There are seven pieces of customary land for 5 project affected households. The sizes range from 1780

square metres to 16000 square metres in sizes.

b) There are four maize gardens on the site for 4 project affected households.

c) There are eight building properties on the site. These include two houses, four uncompleted chalets

intended for a lodge), a kitchen, pit latrines and two water tanks.

d) There were various timber trees such as pine trees and blue gum trees.

e) There are various fruit trees for the 4 project affected households.

Annex 4 provide inventory of various assets of project affected households.

Project affected households have been compensated for properties indicated in 2.5.0 (c ) to ( e) by

Malawi Government on open market values. Details of compensation figures are attached in annex 6

and 7 of this report.

Assets listed in (a) and (b) – customary land and crop yields from maize gardens have not been

compensated as at the time of this report. Farming activities on the site were typical of smallholder

farming in rural area. All project affected households grew hybrid maize, beans and soya beans on the

gardens. Crops were grown under rain fed conditions and the yields were for household consumption.

Other features of the agricultural activities were as follows:

a) Project affected households used family labour and occasionally used hired labour for crop production

activities (land preparation, planting, weeding, fertiliser application and harvesting).

6

b) Project affected households used both basal and top dressing fertilisers in the maize crops to enhance

yields from their fields.

Column 1 and 2 of annex 8 outline the details of owners of maize gardens and sizes of gardens on the

project site.

Field consultations have established that the project affected people were abruptly stopped from farming on

the site in September 2015. In this regard, all 5 project affected people have not been able to grow food

crops such as maize, soya beans and beans for household consumption. This action plan has

recommended that the 4 project affected people be compensated for loss of maize yields from their

gardens. The compensation has to cover for two years because they project affected people may not be

able to grow crops in the 2016/2017 year. The recommended amount of compensation for maize yields are

outlined in columns 4-6 of annex 8 of this report.

7

An overview of identified assets for project affected households on the site

Photograph 1 showing one of the

houses affected by the proposed

project on the site. The house

seen in front of the vehicle is

constructed of burnt bricks,

cement mortar, cement plaster

and cement floor. It has

corrugated iron sheets sitting on

trusses as a roof. The house

belongs to Damazio Mtegha

Photograph 2 showing one of

uncompleted chalet for the lodge.

The structure has cement floor,

walls constructed from burnt

bricks and cement mortar and

concrete beam. The structure

belongs to Alubwira

Mwenesongole.

Photograph 3 showing one of

uncompleted chalet of the lodge.

The structure is built of burnt

bricks, cement mortar, cement

plaster, cement floor and

corrugated iron sheets. The

structure belongs to Alubwira

Mwenesongole, one of the project

affected person.

8

An overview of identified assets for project affected households on the site

Photograph 4 showing some pie

trees on the project site. The pine

trees were within the plot.. The

owner of bamboos is Tinaford

Mtegha. He has been

compensated for the trees. The

affected person also collected the

trees and has since sold timber

from trees..

Photograph 5 showing some

gardens for maize gardens and

fruits on the site. Note the fruit

trees – guavas and bananas on

the background of the photograph.

The vacant land is part of maize

gardens which have not been

grown in the 2015/2016 crop

season.

Project affected people must be

compensated for loss of maize

yields from the gardens.

Photograph 6 showing a house of

one the project affected person –

Tinaford Mtegha. The house is

built of burnt bricks, cement

plaster, cement floor and cement

tiles. The household uses two pit

latrines and one bathroom outside

the house for sanitary services.

This house is outside the project

area, and will not be demolished.

9

3.0.0 BRIEF DESCRIPTION OF POLICIES OF WORLD BANK AND GOVERNMENT OF MALAWI AND

IMPLICATIONS ON COMPENSATIONS.

3.0.0 Review of policies on land and property compensation in Malawi.

Policy and legal framework on compensations and resettlement in Malawi are drawn from various government policies and pieces of legislation. In addition to a review of the Constitution of Republic of Malawi, other key government policies and pieces of legislation considered here include: Malawi National Policy, Land Act, Land Acquisition Act, and the Forestry Act. The following paragraphs highlight some compensation and resettlement related requirements in relation to acquisition of customary land for the Tourism and Hospitality Skills Development Centre.

3.0.1 The Constitution of Republic of Malawi.

The Constitution of the Republic of Malawi guarantees land as a basic resource for social and economic

asset for all Malawians. It affirms equitable access of land and ownership of property. The constitution also

sets a benchmark on the issue of land acquisition. It provides in section 28(2) that “No person shall be

arbitrarily deprived of property” and in section 44(4) that “Expropriation of property shall be permissible only

when done for public utility and only when there has been adequate notification and appropriate

compensation provided that there shall always be a right to appeal a court of law”. In regard to these facts, it

will be necessary for the community to provide adequate land to for displaced persons. The Constitution of

Republic of Malawi further guarantees security of tenure of land and free enjoyment of legally acquired

property rights in any part of the country. The implication of this provision is that government will have to pay

out fair and adequate compensation to land owners in acquisition of the land for the Tourism and Hospitality

Skills Development Centre.

3.1.2 The Malawi National Land Policy.

The Malawi National Land Policy focuses on land as a basic resource common to all people of Malawi and

for enhancement of socio – economic development. Section 4.11 affirms equitable access to land to all

citizens of Malawi. The policy recognizes human settlement and agriculture as the major benefactor land

use sector. As such, the policy advocates for orderly resettlements of villages or households especially in

rich agricultural zones. Furthermore, the policy guarantees full legal protection to customary land tenure to

the people of Malawi in order to enable the ordinary Malawians adequately participate in subsistence

farming and socio-economic development activities. The Malawi National Land Policy also advocates for fair

compensation on open market value to local people on all classes of land (whether held under customary

land tenure or leasehold) in case such land is acquired for public interest or for development of public

infrastructure. In reference to relocation of displaced people, the policy advocates adequate consultations

with the affected people so that their interests are taken care of.

3.1.3 Land Act

Land Act covers land tenure and land use quite comprehensively. Section 27 and 28 of the act guarantees landholders for appropriate compensation in event of disturbance of or loss or damage to assets and interests on land Act also provides procedures of acquisition of one class of land to another. The process begins with appropriate notice to people on the site.

3.1.4 Land Acquisition Act.

This law covers procedures relating to the acquisition of land by either the government or individuals or developers from any form of the land tenure systems in Malawi. The act makes provision for preliminary investigation, preliminary survey of the area and the procedure to be followed where land should be acquired. The procedure for land acquisition starts with issue of a formal notice to persons who have existing interests in the land. Such notices are issued under section 6 of this act. Sections 9 and 10 of the

10

act covers the steps for assessment of land, crops, fruits and other landed properties and subsequent procedures for payments of the compensations to the displaced people. Section 11 to 14 outlines the necessary steps for land surveying and land transfer following notices in government gazette. The responsibility of identifying alternative land for those affected people rests with their village headman, their traditional authority and District Commissioner of the district. The District Commissioner assists in transportation and provisions of necessary services on new sites of resettlement.

Implications for the law on the project include land acquisition for the Tourism and Hospitality Skills Development Centre and potential risks of movement of people from some sites. Government has to ensure adherence to sections 6-14 of Land Acquisition Act.

3.1.5 Forest Act.

The Forestry Act number 11 of 1997 affirms the role of Department of Forestry on control, protection and management of forest reserves and protected forest areas. In addition the act recognizes the need to promote participatory social forestry and empowerment of communities for conservation and management of trees within the country. In this regard the act encourages community involvement in woodlots and management of forest reserves through co-management approaches. Section 86 of Forestry Act has provided guidelines on values/rates for sale of both indigenous trees and exotic trees. These rates are gazetted, and are reviewed from time to time by senior government officials. The values are used so that those who are involved in forestry are paid reasonable compensations on their timber trees and fruit trees .In case the department has not reviewed the rates at the material time, the department of Forestry normally assigns an officer to value the trees for purpose of immediate sale or compensations. Normally, the valuation of people’s trees are done based on species of trees, measured diameter of breast height and market price in kwacha per cubic metre. Current rates for compensations of various trees are contained in Malawi Gazette Supplement No 13A of 3 December 2010. Government Notice number 23.

3.2.0 Involuntary Resettlement Policies of the World Bank

The preparation of Abbreviated Resettlement Action Plan for the 5 displaced project affected households on

the urban land has been prepared in line with section 5.2.0 of Resettlement Policy Framework of Skills

Development Project and in line with section 22 of Involuntary Resettlement Policies ( OP 4:12).

The overall objective of World Bank Involuntary Resettlement Policies (OP 4.12 is to avoid or minimize

involuntary resettlement of people where feasible, exploring all viable alternative project designs. Further,

the policy encourages community participation in planning and implementing resettlement. However, in

incidences where resettlement is un avoidable, the policy stipulates criteria for eligibility to compensation,

resettlement assistance and rehabilitation assistance measures to displaced persons on the following

conditions:

a. Those who have formal legal rights to land, including customary and traditional rights recognized under the laws of Malawi. This class of people includes those holding leasehold land, freehold land and customary land held within the family or passed through generations.

b. Those who have no formal legal rights to land at the time the census but have a claim to such land or assets provided that such claims are recognized under the laws of Malawi. This class of people includes foreigners and those that come from outside and given land by the local chief to settle.

c. Those who have no legal right or claim to the land they are occupying to the land they are occupying. This class of people includes squatters, pirates and those that settle at a place on temporary basis, or those settling at a place without any formal grant or authority.

In a World Bank funded project, displaced persons classified under paragraph 3.1(a) are provided

compensation of land, loss of business from land, resettlement assistance and rehabilitation assistance for the

land, building or fixed assets on the land and buildings taken by government if affected people were on

project area prior to the cut-off date (date of commencement of the census).

11

3.3.0 Comparison and gaps between policies of World Bank and Malawi on resettlement.

Policies of the World Bank on resettlement and of Government of Republic of Malawi have a number of

common aspects in management of involuntary relocation of people. The first similarity is that both policies

emphasise on minimisation of the extent of resettlement .Secondly, the policies recommends considerations

of fair and adequate compensations to project affected persons. However, there some gaps which exists

between the policies of World Bank (Involuntary Resettlement Policies) and those of Government of

Republic of Malawi. A detailed comparative analysis is provided in table 3. Some selected examples are as

follows:

(a) On aspect of compensations on assets to project affected people, the policies of World Bank on resettlement include illegally built structures of squatters and pirates as eligible for compensations on their assets. In case of Malawi, such claimants are not entitled to compensations.

(b) On aspects on compensations on land, the policies of Government of Malawi considers the different intrinsic values associated with various classes of land .In such cases, rates for compensation on land vary from one site to another and from one class of land tenure to the other. World Bank policies do not distinguish such differential aspects of land classes and corresponding different market rates.

(c) In cases on compensation of loss of land, the World Bank policies prefer land for land compensation. In Malawi an option of land for land compensation is normally preferred in customary land transaction while option of land for money compensation is the preferred options in urban areas.

(d) World Bank policies clearly stipulate resettlement as an upfront project – in that all issues of land acquisition and relocation of project affected people has to be done prior to commencement of the civil works. Malawi’s policies do not clearly spell out this approach and in practice; resettlement is treated as a separate exercise outside project planning and implementation process.

(e) World Bank Policies clearly recommends for adequate resettlement assistance and rehabilitation assistance to relocated people as a way of restoring and enhancing socio – economic living standards. This is supposed to be undertaken within the first years of relocation on the new sites. Malawi legislation does not clearly define the extent of resettlement assistance to relocated people. Much of available support is normally left in hands of District Commissioner and local chiefs within the district and area of relocation of the project affected people.

3.4.0 World Bank Safeguards and Implications on member countries.

As international instruments, World Bank Involuntary Resettlement Policies advocate for best practices in

incidences of displacement of project affected people/households. Involuntary Resettlement Policies

demands payment of fair compensation and resettlement assistance which can safeguard adverse effects

and enhance better living conditions compared to the situation before displacement. Specifically, Involuntary

Resettlement Policies highlights that project affected people must not live in conditions worst off than

conditions before disturbance.

It should be highlighted here that in situation of contradiction of policies of World Bank Group and a member

country ( in this case Malawi) on compensation entitlements to project affected people, the policies of The

World Bank Group overrides the policies/laws of a member country ( in this case Malawi). In this context,

the implication is that the 5 project affected households (38 persons) on the customary land must be

provided with appropriate compensation and resettlement assistance in line with Involuntary Resettlement

Policies (OP 4:12). The acquisition of 3.3 hectares has led to loss of building properties and loss of land for

food production (the staple food) for the 5 affected households (38 persons). This entails significant loss on

means of livelihoods on part of the households.

12

Table 1 : Outline of selected differences on management of resettlement between Involuntary Resettlement Policies and Laws of Malawi

Project affected person Provisions from relevant laws of Government of Malawi World Bank Provisions on the aspects Appropriate measures for addressing the

gaps (all prior to displacement)

Name of Legislation Provision within piece of legislation in Malawi

Land Owner/Occupier Land Acquisition Act

(Chapter 57:04)

The law stipulates that compensation of assets/buildings based on assessment done by government and agreed by parties.

The law stipulates that no compensation given on customary land is acquired.

The law stipulates that compensation not to exceed market value.

The policy stipulates that persons are entitled to compensation for structures and crops regardless of the legal status of their structures or occupation of the land

The policy stipulates that owners of buildings built illegally are entitled to compensation at full replacement costs (including labour costs, cost of please let transportation of materials, taxes fees etc) prior to displacement

Compensation of all structures at full replacement costs

Compensations on arable crops and trees on real replacement values..

Land Owner/Occupier Public Roads Act

(chapter 69:02)

The law stipulates that land owners are entitled to reasonable compensation on improvements

The law stipulates that land owners can be compensated for land to land if alternative land is available.

The policy stipulates that the recommended option is compensation of land for loss land. Other losses to be compensated at replacement costs.

The policy stipulates that temporary structures or buildings are entitled for in land compensation or cash compensation at full replacement costs (including labour and relocation expenses etc) resettlement assistance

Compensation of land for land to project affected persons be the first priority.

Compensation of money for land to project affected persons in cases of lack of alternative suitable land.

Compensations on crops and trees on market values.

Resettlement assistance to project affected persons.

Land Owner/Occupier Land Acquisition Act

(Chapter 57:04)

The law stipulates that compensation of assets based on assessment done by government and agreed by parties.

The law stipulates that no compensation given on customary land is acquired.

The policy stipulates that owners of buildings built illegally are entitled to in land compensation at full replacement costs including labour costs prior to displacement.

The policy stipulate that land owners are entitled to compensation for crops

Compensation of all structures at full replacement costs

Land Owner/Owner Customary Land Act The law favours land for land compensations.

The law does not allow monetary compensation for customary land

The policy favours land for land compensations in cases of loss of land

The policy stipulate that all displaced people are entitled to compensation for crops and other assets

Compensation of land for land to project affected persons.

Compensation of structures at full replacement costs

13

3.5.0 Assessment of compensation gaps between entitlement under Resettlement Policy Framework and Compensation paid by Malawi Government.

Review of compensation packages paid to project affected household indicates that compensations covered improvement/ building properties, timber trees and fruit trees on the site. Compensations for buildings were paid at open market values.

Review of the compensation packages have established some additional compensation entitlements as stipulated in Resettlement Policy Framework have not been paid yet. The forms of compensations not paid are as follows:

a) Compensations for loss of 4.668 hectares of customary land by the 5 project affected households.

b) Compensation for loss of maize output from the gardens on the site.

c) Compensation for disturbance allowance. The affected people abruptly told to move out of the site.

d) Compensations for transport allowance to cover costs for movement of materials.

3.6.0 Principles of fair compensations to project affected households.

The approach in addressing the discrepancies between policies of the two institutions is focus

implementation of policy aspects which positively favour the project affected persons, and leave out those

which negatively impact on the project affected persons. This recommendation is on the observation of that

the common position between Involuntary Resettlement Policies (OP4:12) and the Constitution of Republic

of Malawi on resettlement is the guarantee of fair and adequate compensation and adequate resettlement

assistance for the project affected person. In this regard, suitable options to be adopted are as follows:

(a) Compensations in form of land for land loss to acquisition from those who have been displaced be made as a top priority .The option could come out as cost effective as the land acquisition process (which involves the project affected persons) may be much cheaper compared to acquisition of the same land by the government.

(b) Compensations related to customary land acquisition to be made on real replacement values as opposed to previous practice of considering customary land as a free commodity. Whenever there is a conflict between the Bank and Government of Malawi policies on land tenure that of the bank will prevail.

(c) Compensation of buildings properties at replacement values. Compensation money to include costs of materials, cost for labour of construction and costs for transport of materials

(d) Disturbance allowance to be paid to affected households. Disturbance allowance to cover costs for transportation of household effects from the site to new sites.

(e) Compensations should be paid in relations to labour inputs into gardens crops within the immediate past year.

4.0.0 DESCRIPTION OF COMPENSATION ENTITLEMENTS AND RESETTLEMENT ASSISTANCE TO

PROJECT AFFECTED PEOPLE.

4.1.0 Description of compensation entitlement to project affected households.

The 5 project affected households had formal legal rights to the customary land on the site. Land was the

foundation of their livelihoods. In line with principles of Resettlement Policy Framework (as outlined in

entitlement matrix in annex 12), the 5 affected households are entitled to compensation for equivalent land,

compensation of building properties, loss of crop output from land, resettlement assistance, disturbance

allowance and rehabilitation assistance. In line with entitlement matrix (annex 12), the 5 project affected

households are entitled to six forms of compensations, and these are:

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g) Loss of customary land by 5 project affected households. The estimated size of lost land is 4.668

hectares.

h) Loss of eight buildings (chalets, houses, pit latrines) on the site. The project affected households

are entitled to compensations at replacement values.

i) Loss of timber trees and fruit trees on the land

j) The loss of maize yields from maize gardens on the site. The 4 affected households are entitled to

projected maize output because they were stopped farming on their gardens.

k) Loss of labour input into the gardens. The 5 project affected households used family labour and

hired labour (occasionally) to produce maize from the gardens.

l) Disturbance allowance to project affected households. Information obtained during consultations

indicates that the 5 project affected households were not formally issued with written notice of

vacation of the site. The affected households are entitled to disturbance allowance because they

were abruptly stopped from farming activities. The affected households were not served with

formal notice of vacation as required under Involuntary Resettlement Policies of the World Bank

and Land Acquisition Act. Compensation of disturbance allowance to each of the project affected

households has to be calculated as 25% of projected annual business (farming) from the

garden/premises.

4.2.0 Description of Resettlement Assistance to project affected households

This assistance is intended to positively support project affected households in order to cope up with abrupt

negative changes/losses in their maize production on the gardens on the project area. Resettlement

assistance should be able to enhance better living standards (food security status) for the 5 project affected

households. Appropriate resettlement assistance to the 5 project affected households are the following:

a) Disturbance allowance to cater for transport costs for movement of construction materials from City of

Mzuzu to the new sites of house construction.

b) Assistance in identification of alternative land for crop cultivation.

c) Provision of hybrid seeds to support the affected households in the next crop season. Early maturing

hybrid seeds of 5 kilogram’s are recommended for each of the 5 project affected households.

d) Provision of transport to project affected households to move household effects and some contraction

materials from the site to new site.

e) Provision of transport allowance for transportation of new building materials in the City of Mzuzu.

f) Offer of job opportunities at the construction site for the centre to some qualified members of project

affected households.

5.0.0 GRIEVANCE REDRESS MECHANISM

The preparation and implementation of Abbreviated Resettlement Action Plan has risks of complaints from

project affected people in one way or the other. Potential areas of complaints could be the procedures of

compensations, the rates of calculation of compensation packages and the amount of compensation

packages offered to the affected people. A Grievance Redress Committee has been established by Mzuzu

University. The committee will handle all potential complaints/disputes from the project affected people in

the process of implementation of the abbreviated resettlement action plan. The committee is composed of

District Commissioner, District Agriculture Development Officer, Mzuzu City Council, Regional

Commissioner for Lands and Valuation, a representative of project affected households and Mzuzu

University. The District Commissioners for Mzimba is the Chairperson

15

5.1.0 Simple procedures for Grievance Redress Mechanism.

In order to make the grievance redress mechanism friendly to project affected people, the following simple

rules must be used in the procedures:

a) Venue of meetings to be closer to the project site or site convenient to the project affected people.

b) The committee has to disclose all data and information from the Abbreviated Resettlement Action Plan

to project affected households.

c) The committee and project affected households must agree a reasonable time to go through the

Abbreviated Resettlement Action Plan .Project affected households to provide feedback ( acceptance or

rejection) within specified time.

d) Project Affected households heads can submit a complaint or dispute orally or through phone or through

a simple letter. The submission can be in Chitumbuka or English languages.

e) All complaints to be submitted to the Office of District Commissioner, Mzimba

f) District Commissioner to provide feedback to all complaints/disputes within 5 days from date of

Grievance Redress Committee

g) Project Affected Households to be informed that in case of unsatisfactory response/resolution for

Grievance Redress Committee, they can seek redress from Judiciary.

h) Project Affected Households to be informed that in case of unsatisfactory response from Grievance

Redress Committee, they can seek redress from World Bank Redress Service. The Office of

submission of the complaint is Country manager, World Bank Malawi Office, Mulanje House, off

Presidential Highway, City centre, Lilongwe 3.Phone 01 770 611.

i) Payment of compensation packages to project affected household must be done after approval of

Abbreviated Resettlement Action Plan by Malawi Government (Office of President and Cabinet) and

World Bank Group.

6.0.0 IMPLEMENTATION OF ABBREVIATED RESETTLEMENT ACTION PLAN

Implementation of Abbreviated Resettlement Action Plan will be spearheaded by Mzuzu University.

Implementation of the action plan will commence by approval by both the Malawi Government and the

World Bank. This is necessary so that both parties (Malawi Government and The World Bank) agree on the

proposed compensation packages, and that the principles of best practices have been adhered to as

stipulated in Involuntary Resettlement Policies.

6.1.0 Description of Institutions and roles on Abbreviated Resettlement Action Plan

The implementation of Abbreviated Resettlement Action Plan must involve various government agencies.

These agencies have some statutory roles in facilitating compliance to the process and others have roles in

monitoring the process. There are six institutions which will play a role in the implementation of the

Abbreviated Resettlement Action Plan. These are:

a) Mzuzu University. The roles of Mzuzu University will include: To procure compensation items/materials

for project affected people; to organize transport of maize from traders to project affected households

16

homes; to facilitate the payment disturbance allowance and resettlement assistance to project affected

people and participate in Grievance Redress Committee

b) National Council for Higher Education (NCHE). The role of NCHE will include: to facilitate the approval

of Abbreviated Resettlement Action Plan by both Malawi Government and The World Bank Group; to

facilitate operations of Grievance Redress Committee; to monitor Mzuzu University to ensure timely

payment/delivery of compensation packages to the affected people; to provide financial resources for

logistics and administrative activities for Abbreviated Resettlement Action Plan; will provide progress

report to World Bank Malawi on implementation of the approved action plan

c) Ministry of Finance. The roles of Ministry of Finance will be: to pay for procurement of maize; to

payment for disturbance allowance to project affected people; to pay for administrative costs for the

compensation packages.

d) Office of President and Cabinet (OPC). The role of OPC will be: To approve the Abbreviated

Resettlement Action Plan on behalf of Malawi Government and to monitor the effective implementation

of the plan through Central Internal Audit Directorate.

e) District Commissioner of Mzimba; The role DC Mzimba will be to coordinate the distribution of

compensation packages to project affected people; to facilitation the timely delivery of the compensation

packages to affected people ; to oversee the operations of grievance Redress mechanisms for the

project

f) Ministry of Lands, Housing and Urban Development. The role of Ministry shall be to approve the

Abbreviated Resettlement Action Plan and participate at Grievance Redress Committee.

6.2.0 Timetable for implementation of Abbreviated Resettlement Action Plan.

Table 2 overleaf outline a timetable for implementation of main activities for the Abbreviated Resettlement

Action Plan. The timetable covers a period of two months. Main activities include are:

a) Public Disclosure of the Abbreviated Resettlement Action Plan.

b) Procurement of Compensation materials/items

c) Delivery of Compensation items

d) Delivery of resettlement assistance to project affected people.

6.3.0 Budget for Implementation of Abbreviated Resettlement Action Plan

A detailed budget for implementation of Abbreviated Resettlement Action Plan is included as table 3

overleaf. Main activities covered in the budget include the following:

a) Budget for procurement of compensation materials/items.

b) Budget for compensation of land at replacement values

c) Budget for resettlement assistance.

d) Budget for transport costs for delivery of compensation materials to affected people

17

Table 2: Timetable for implementation of Abbreviated Resettlement Action Plan

Time in weeks Time in weeks

Description of main activities July 2016 August 2016

Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Week 5

Public Disclosure in Malawi newspapers

Public Disclosure at World Bank Info

Procurement of Compensation Materials

Purchase of Maize ( Grade 1)

Purchase of Hybrid Maize seeds

Hire of trucks for maize transport

Operations of Grievance Redress Committee

Registration of complaints from people

Meetings of grievance Redress Committee

Feedback to complaints on resolutions

Delivery of compensation and resettlement

Delivery of maize to project affected people

Resettlement Assistance to affected people

Payment of compensation for land

Payment of disturbance allowances

Delivery of hybrid seeds to affected people

Transport of maize to affected people’s homes

18

Table 3: Budget for implementation of Abbreviated Resettlement Action Plan

Description of activities/items budgeted for Unit Quantity Price (MK) Total (MK) Source of funds

Public disclosure Notices on Abbreviated Resettlement Action Plan in newspapers ( 2 newspapers for two weeks)

Notices 12 60,000.00 720,000.00 Ministry of Finance

Procurement of Compensation Materials

Purchase of Maize for affected people for 2 seasons Kg 5600 200.00 1,200,000.00 Ministry of Finance.

Purchase of Hybrid Maize seeds ( 5 Kg ) from seed traders 5 Kg 5 12,000.00 60,000.00 Ministry of Finance,

Payment of compensations and resettlement assistance

Payment of compensation for permanent loss of customary land hectare 4.668 1,500,000.00 7,002,000.00 Ministry of Finance

Payment of disturbance allowance to 5 affected households Lump sum 1,990,820.00 Ministry of Finance

Hire of transport - maize to houses of affected people Lump sum 50,000.00 Ministry of Finance

Total 11,022,820.00

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7.0.0 MONITORING IMPLEMENTATION OF ABBREVIATED RESETTLEMENT ACTION PLAN

An independent institution, National Council on Higher Education (NCHE) will undertake performance

monitoring and evaluation system for the implementation the approved Abbreviated Resettlement Action

Plan. The purpose of performance monitoring to ensure effective and timely implementation of

compensation packages and resettlement assistance to project affected people.

Monitoring of the implementation of activities will be undertaken through organization of monthly review

meetings for all stakeholders and submission of weekly progress reports by Mzuzu University. National

Council on higher Education will submit monthly reports to Office of President and Cabinet and The World

Bank. Progress reports will highlight performance indicators in key areas of the Abbreviated Resettlement

Action.

Key project activities where National Council on higher Education will track progress will include the

following: Procurement of maize for compensation to project affected people; purchase of hybrid maize

seeds for distribution to affected people, operations of Grievance Redress Committee; delivery of

compensation items/materials to affected people and provision of resettlement assistance to project

affected people.

Table 4 overleaf outline a monitoring plan for the exercise.

20

Table 4: Monitoring plan for Abbreviated Resettlement Action Plan

Description of activities Institutions responsible for implementation

Monitoring indicators Monitoring authority Means of verification

1.0 Procurement of compensation materials/items

Purchase of maize Mzuzu University Number of 50 kg bags of maize

National Council on Higher Education

Reports Receipts

Purchase of hybrid maize seeds Mzuzu University Number of 5 kg sachets of seeds


Reports Receipts

Hire of transport for movement of maize to DC and affected people

Mzuzu University Number of trucks National Council on Higher Education

Reports

Operations of Grievance Redress Committee

Organization of meetings District Commissioner Number of meetings

Minutes


Minutes

Receipt of complaints from affected people District Commissioner Number of letters National Council on Higher Education

Reports

Resolution on complaints District Commissioner Minutes National Council on Higher Education

Minutes

Feedback on complaints to affected people District Commissioner Feedback letters to complainants


Reports

2.0 Delivery of compensation materials to project affected people

Payment of compensation for loss of customary land District Commissioner Mzuzu University

Amount of money National Council on Higher Education

Reports

Provision of maize to affected people District Commissioner Mzuzu University

Number of affected people who receive maize


Reports

Provision of hybrid seeds to affected people District Commissioner Mzuzu University

Number of affected people who receive maize


Report

3.0 Delivery of resettlement assistance to people

Transport of compensation items to houses of affected people

District Commissioner Mzuzu University

Number of trips of trucks National Council on Higher Education

Report

Payment of disturbance allowances to affected people District Commissioner Mzuzu University

Amount of money paid

Number of people paid


Report

21

8.0.0 SUMMARY OF RECOMMENDATIONS.

The following are key recommendations:

8.1.0 Payment of compensations to project affected households

a) Compensate the 5 project affected people for loss of customary land. Compensations

to be based on replacement values as recommended in column 6 and 7 of annex 2

b) Compensate the 4 project affected households for loss of maize yields from the

gardens. Compensations to be based on estimated maize yields as outlined in column

5 and 6 of Annex 8

8.2.0 Resettlement Assistance to project affected households

Involuntary Resettlement Policies (OP:12) and Resettlement Policy Framework recommend

that adequate resettlement assistance is provided to project affected households so that they

do not adversely suffer from loss of assets or do not live in worse conditions than the

conditions before displacement. In this context, this section recommends adherence to

following four measures which can enhance better living standards for the project affected

households:

a) Provide the 5 project affected households 5 kilogrammes hybrid seeds sachets. The

seeds would help the affected households to grow maize in the next growing season.

b) The payment of disturbance allowance will cater for labour input in next crop season

wherever the affected households would wish to grow crops. Basis of payment is

outlined in column 6 of annex 9

c) The payment of transport allowance to project affected people to cater transport costs

for movement of construction materials from the City of Mzuzu to new sites for re-

construction of houses. Basis of payment is outlined in column 8 of annex 6

d) Assist the 4 project affected people to purchase alternative land for cultivation after

payment of compensation.

e) Extend potable water supply (through installation of water tap) to project affected

households adjacent to project site. This can be done by Mzuzu University at the time

of construction works on the site.

22

REFERENCES

Government of Malawi (2002), Malawi National Land Policy, Ministry of Lands, Physical Planning and Surveys.Lilongwe Government of Malawi (1995), The Constitution of Republic of Malawi.Lilongwe Government of Malawi (1988), Town and Country Planning Act, Department of Town and Country Planning. Lilongwe Government of Malawi (1965), Land Act. Department of Lands and Valuation.Lilongwe Government of Malawi (1967), Land Acquisition Act. Department of Lands and Valuation Government of Malawi (1998) Local Government Act. Ministry of Local Government and Rural Development, Lilongwe World Bank Group (2011) Involuntary Resettlement Policies, Washington DC

23

Annex 1: Census of project affected households on project site.

Picture and names of the project affected head of

household

Address and contact details Gender Age Marital Status

Period of residency on the village

Tinaford Mtegha

Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

Male 79 years Married Since birth

Damazio Mtegha


Male 41 years Married Since birth

24

Name: Isaac Mkandawire


Male 46 years Married 3 years

Name: Vitumbiko Mtegha


Male 19 years Student Since birth

( Picture not available) Name: Alinubwira Mwenesongole


Male 44 years Married 3 years

25

Annex 2: Census of pieces of land and land uses by project affected people

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7

Name of household head and physical

Location Address and Contact details

Size of land Land tenure Period of ownership of land

Main uses of land Land market value per hectare in MK

Replacement value of land loss

Name: Tinaford Mtegha Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

2.3 Customary land Since birth Farming Tree Plantations

1,500,000.00 3,450,000.00

Name: Damazio Mtegha Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

1.2 Customary land Since birth House construction Farming Tree Plantation

1,500,000.00 1,800,000.00

Name: Isaac Mkandawire Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

0.49 Customary land 4 years Farming 1,500,000.00 735,000.00

Name: Vitumbiko Mtegha Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

0.178 Customary land Since birth House construction Farming

1,500,000.00 267,000.00

Name: Alinubwira Mwenesongole Village : Makhuwira Msiska Village Traditional Authority: T/A Mtwalo District: Mzimba

0.5 Customary land 4 years Construction of

chalets for a lodge

businesses

1,500,000.00 750,000.00

Total 4.668 hectares

7,002,000.00

26

Annex 3: Socio-Economic characteristics of project affected households

Name of Household head and

Physical Location Address and

Contact details

Age Marital status Size of Household

Main source of Income

Estimated annual income

Main occupation Education

qualifications


79 years Married 10 people Farming MK800,000.00 Smallholder farming

Standard 6


41 years Married 7 people Employment Farming

MK4,000,000.00 Employment

Smallholder

farming

School certificate


46 years Married 11 people Employment Farming

MK2,000,000.00 Employment in

private sector

School certificate


18 years Student 3 people Farming Not applicable Student Junior certificate


44 years Married 8 people Family business Farming

MK5,000,000.00 Family

businesses

Farming

School certificate

27

Annex 4: Inventory of assets of project affected households.

Name of household head and

Physical Location Address

and Contact details

Building properties Land Ownership on the site Fruit trees Timber trees

Description of the

buildings

Size of the

building

Size of land Use of land

Name: Tinaford Mtegha Village : Makhuwira Msiska

2.3 Farming Timber plantations

Various Various

Name: Damazio Mtegha Village : Makhuwira Msiska

Dwelling house

88.79 1.2 House Farming Timber plantations

Various Various

Kitchen

12.18

Pit latrine

Name: Isaac Mkandawire Village : Makhuwira Msiska Village

Has no building property

on the site

0.49 Farming Various Various

Name: Vitumbiko Mtegha Village : Makhuwira Msiska Village

Dwelling house

32.72 0.178 House construction Farming

Name: Alinubwira Mwenesongole Village : Makhuwira Msiska

4 uncompleted chalets 134.24

0.5 Construction of lodge

Various Various

2 water tanks

Pit latrine

Borehole

28

Annex 5: Characteristics of housing conditions for project affected persons



Contact details

Type of house

/building

Conditions of

walls of house (Permanent or earth

mud)

Condition of roof (grass thatched or iron sheets)

Condition of floor (Permanent or earth

floor)

Source of potable water

Means of

sanitation


Owner Occupier Permanent burnt

bricks

Cement tiles Permanent floor Shallow well and river

Pit latrine



bricks

Corrugated iron sheets

Permanent floor Shallow well and river

Pit latrine


No house on site



bricks

Cement tiles Permanent floor Shallow well and river

Pit latrine


Uncompleted

structures for a

lodge ( chalets)

Permanent burnt

bricks

Corrugated iron sheets

Permanent floor Shallow well and river

Pit latrine

29

Annex 6: Description of replacement values of building properties for project affected people.

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8



Contact details

Description of the

buildings

Size of the

building

Estimated construction rate ( per square metre)

Estimated cost of construction of building

Estimated labour input @ 20% of construction estimate

Replacement value

of buildings

Disturbance

allowance @ 5% of

construction costs


Has no building on

the site


Dwelling house

Built with burn bricks,

cement mortar, iron

sheets, timber

trusses, plastered

walls, glazed window

panes

88.79 90,000.00 7,991,100.00 1,598,220.00 9,589,320.00 767,146.00

Kitchen

Built of burnt bricks,

bonded by mud, iron

sheets on timber

trusses

12.18 20,000.00 243,600.00 48,720.00 292,320.00 23,386.00

Pit latrine


irons sheets,

concrete slab

19,000.00 3,800.00 22,800.00 1,824.00


Has no building

property on the site

Name: Vitumbiko Mtegha Village : Makhuwira Msiska Village

Dwelling house

Built of burn bricks,

32.72 29,000.00 948,880.00 189,776.00 1,138,656.00 91,092.00

30

Traditional Authority: T/A Mtwalo District: Mzimba

bonded by mud.

Asbestos roof,

cement floot and

window panes


Chalet 1


bonded with cement

mortar, iron sheets,

timber trusses, glzed

window panes

33.56

90,000.00 3,020,400.00 604,080.00 3,624,480.00 289,958.00

Chalet 2 Built of burnt bricks, bonded with cement mortar, iron sheets, timber trusses. No window panes

33.56 80,000.00 2,684,800.00 536,960.00 3,221,760.00 257,740.00

Chalet 3 Built of burnt bricks, bonded with cement mortar. At roofing stage

33.56 71,000.00 2,382,200.00 476,552.00 2,858,752.00 228,700.00

Chalet 4 Built of burnt bricks, bonded with cement mortar. No roof

33.56 55,000.00 1,845,800.00 369,160.00 2,214,960.00 177,197.00

Pit latrine Built of burnt bricks, concrete slab, no roof

25,000.00 5,000.00 30,000.00 2400.00

Small Water tank 308,280.00 61,656.00 369,936.00 29,595.00

Big Water tank 17,000.00 3,400.00 20,400.00 1632.00

Borehole 1250,000.00 250,000.00 1500,000.00 120,000.00

24,883,384.00 1,990,670.00

31

Annex 7: Records of payment of compensation for building properties and trees

33

Annex 8: Summary of projected maize yields from smallholder gardens on project site.

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

Name of Household head

and Physical Location

Address and Contact details

Size of maize

garden on site in

hectares

Estimated high

yield rate per

hectare

Project annual yields from gardens

Number of 50 kg bags year 1

Number of 50 kg bags year 2


0.5 2000.00 1000 20 20


0.4 2000.00 800 16 16


0.4 2000.00 800 16 16


0.1 2000.00 200 4 4

34

Annex 9: Summary of projected business loss from maize gardens and recommended disturbance allowance

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

Name of Household head and


Contact details

Size of garden on

site in hectares

Estimated maize

yield in kg

Current open market price per kg (MK)

Projected income from maize yield (MK)

Recommended disturbance allowance (Calculated as 25% of annual business loss) (in MK)


0.5 1000 200.00 200,000.00 50,000.00


0.4 800 200.00 160,000.00 40,000.00


0.4 800 200.00 240,000.00 40,000.00


0.1 200 200.00 40,000.00 10,000.00

35

Annex 10 : Terms of reference for Abbreviated Resettlement Action Plan

1.0 INTRODUCTION

Malawi Government has received a credit from The International Development Association through the

Malawi Skills Development Project (IDA 13660). The period of implementation is 5 years from 2014 to

2018. The National Council for Higher Education (NCHE) is coordinating the project. The SDP is

implemented in selected public institutions (Chancellor College, Mzuzu University, Mzuzu University and

Polytechnic) and Technical, Entrepreneurship and Vocational Education and Training Agency (TEVETA).

The proposed project aims at developing the skills needed for improving employment outcomes and

increasing productivity among youth and underserved populations by increasing access, enhancing market

relevance, and increasing the results orientation of the participating institutions. Additionally, the project

aims to strengthen capacities of the Ministry of Education, Science and Technology (MoEST), National

Council for Higher Education (NCHE), Technical, Entrepreneurship and Vocational Education and Training

Authority (TEVETA) and participating institutions for policy development, programme planning and

implementation.

In line with the National Education Sector Policy, the participating institutions in this project will expand

equitable access to education in their programmes under the Malawi Skills Development Project.

A recent study on higher education in Malawi identified limited and dilapidated infrastructure as a constraint

to expansion of equitable access and improvement of market relevance in these institutions. Consequently,

these institutions have submitted improvement plans as part of the proposed SDP detailing their

infrastructure needs, which take up a large share of the resources allocated under the project. Given the

large investment in the proposed infrastructure, there is need to ensure that the infrastructure in the

improvement plans is optimum and relevant for the delivery of the proposed programmes.

Initial appraisal of the project under World Bank Safeguards Policies has indicated potential negative

environmental and social impacts, and a category B rating; requiring, Environmental and Social Screening

of the sub-projects, the development of Environment and Social Management Plans (ESMP) and

Resettlement Action Plans (RAP) or Abbreviated Resettlement Action Plan (ARAP).

2.0 LAND ACQUSITION FOR TOURISM AND HOSPITALITY SKILLS DEVELOPMENT CENTRE - MZUZU

Malawi Government acquired 3.3 hectares for Mzuzu University at Dunduzu area (in peri-urban area) for

development of a Tourism and Hospitality Skills Development Centre under Skills Development Project.

The site is adjacent to Dunduzu Service Station, along Mzuzu – Ekwendeni Road (M1), about 3

kilometres from Mzuzu University campus. The proposed centre will be the first purpose bui lt

management institute of tourism and hospitality services in Malawi. The centre will offer higher

education and training for much need human resources in tourism and hospitality sector.

Malawi Government acquired the 3.3 hectares from local villagers within Makhuwira Msiska village Sub

Traditional Authority Mopho Jere, City of Mzuzu. The acquired land was owned by five households as

customary land under the Mtegha clan/family. The land was used for human settlement and farming. At the

time of World Bank Mission in November 2015, there were houses, gardens, fruit trees and timber trees for

the five households within the proposed site. It is understood that the local inhabitants settled in the area

36

over 50 years ago. A local cemetery for the ancestors of local inhabitants is located about 100 metres from

the proposed site of the Tourism and Hospitality Skills Development centre.

The acquisition of the site for the Tourism and hospitality Skills Development centre has triggered the

Involuntary Resettlement Policies (OP 4:12) of The World Bank in that the activities will lead to loss of

land for local people, loss of houses, loss of crops, loss of fruit and timber trees among others. In addition,

the development of the centre on this site may lead to restriction to access to natural resources for some

local inhabitants.

In line with sections 19-22 of Involuntary Resettlement Policies (OP4:12) and Resettlement Policy

Framework for The Malawi Skills Development Project, social safeguard plans for a project of this nature

are either Resettlement Action Plan or An Abbreviated Resettlement Action Plan. An Abbreviated

Resettlement Action is a concise plan which addresses compensation packages and resettlement

assistance applicable to all project affected people are less than 50 households. A detailed Resettlement

Action Plan is applicable where a project displaces more households affected, normally more than 200

households.

3.0 TERMS OF REFERENCE FOR ABBREVIATED RESETTLEMENT ACTION PLAN

Given the fact that the acquisition of land for the Tourism and Hospitality Skills Development Centre will

displace only 5 households, an Abbreviated Resettlement Action Plan has to be prepared. An in line with

section 22 of Involuntary Resettlement Policies OP 4:12,(2012) of the World Bank, the plan will cover the

following:

1) Describe the project area and the proposed project.

2) Undertake a census of all project affected persons and inventories of assets on the site.

3) Undertake socio-economic surveys covering standard socio-economic characteristics of the project affected people.

4) Describe compensation entitlements and resettlement assistance to be provided.

5) Undertake consultations with displaced people about alternative options.

6) Describe institutions responsible for implementation of Abbreviated Resettlement Action Plan

7) Recommend affordable and accessible procedures for grievance redress for affected people.

8) Prepare a monitoring plan for compensation and resettlement activities.

9) Prepare a timetable and budget for all resettlement activities. Schedule must show all estimates for costs for implementation.

4.0 DELIVERABLES: An Abbreviated Resettlement Action and Final Abbreviated Resettlement Action Plan

37

Annex 11: List of people consulted in preparation of Abbreviated Resettlement Action Plan.

Name Position Organization Dates of

Consultations

Mr A.O Thumba Acting Regional Commissioner for Lands and Valuation

Department of Lands and Valuation May 2016

Mr D. Shora Valuation Officer Department of Lands and Valuation May 2016

Mr Chinula Policy, Research and Planning Manager

National Council on Higher Education May 2016

Mr AJC Kawonga Director of Projects and Estates

Mzuzu University May 2016

Mr E. Nyirenda Estates Development Officer Mzuzu University May 2016

Mr H. Msiska Village headman Makhuwira village May 2016

Mr A Chrambo Director of Planning and Development

Mzuzu City Council May 2016

Mr F. Nkhoma Land Surveyor Department of Surveys May 2016

STA Mopho Jere Traditional Authority May 2016

Alinubwira Mwenesongole

Project Affected Person Makhuwira Village, May 2016

Damazio Mtegha Project Affected Person Makhuwira Village, May 2016

Vitumbiko Mtegha Project Affected Person Makhuwira Village May 2016

Tinaford Mtegha Project Affected Person Makhuwira Village May 2016

Isaac Mkandawire Project Affected Person Makhuwira Village May 2016

38

Annex 12: Copy of minutes of at meeting with project affected people.

Venue of the meeting: Project Site: Dunduzu Project Area

List of people present

Mr AJC Kawonga Director of Projects and Estates – Mzuzu University Mr H. Mumba Consultant Mr Willard Shora Valuation Officer

Mr Dan Harawa Dean of Faculty of Tourism and Hospitality Services

Mr Sepula Head of Department

List of project affected people present

Mr Tinaford Mtegha Project affected household head

Mr Damazia Mtegha Project affected household head

Mr Vitumbiko mtegha Project affected household head

Mr Isaac Mkandawire Project affected household head

Mr Alubwira Mwesengole Project affected household head

Villageheadman Makhuwira Msiska

Opening of the meeting: The meeting was opened with a prayer from a volunteer.

Objective of the meeting: Mzuzu University explained that the purpose of the meeting was to follow up on

outstanding issues regarding compensations and resettlement of the people It was explained that a

consultant has been highlighted to look into issues and make recommendations. The members present

were informed that the World Bank

Consultant: The consultants explained to project affected household head to feel free and express the

issue which need clarification and attention. It was explained that the reports will be shared with them at a

later stage.

Comments from project affected people:

Alinubwira

Mwenesongole

I welcome the proposed project as it would develop the area and City of Mzuzu. I

had three structures at roof level on the site. I was not staying on the site, but wanted

to develop a lodge and entertainment centre. There were three workers for me on the

site. The land was purchased from Tinaford Mtegha about 4 years ago. I was in

process of leasing the site, but was stopped due to the proposed development. Have

been compensated for all three structures, flowers and trees around

I received compensations for structures from Mzuzu University in September 2015. I

have purchased alternative land adjacent to the site. Currently building a house

Complaints: Did not receive money for the land but only structures, flowers and

toilets. I did not receive money for transport for materials and workers on the site

Tinford Mtegha I have been here for over seventy years, and the land has been customary land

under our clan for all these years. Mt father came here in 1950s and the land was

39

owned by our family. I had maize garden here, I had trees and fruit trees. I was

compensated little money for timber trees and fruit trees. I have nti been given money

for my garden. Land is becoming scarce and I have not found an alternative land for

my household

Damazio Mtegha

I have been on this site since I was born when our forefathers were given this land by

chiefs. I have a house of four bed rooms and I keep seven dependent. I received the

compensations of about Mk11 million from Mzuzu University for the house and trees

and fruit trees sometime in September 2015

Complaints: The amount of money was not enough as we have to use the same

money to uses for labour costs. We did not receive money for the land we have lost

here. One household has not managed to find alternative land. So Tinaford Mtegha

(head of clan decided to share part of his garden to me – where I am building a new

house.

Compliant: The house under construction is smaller than the current house. This is

because the money I received was little replace the current house. The materials

have gone up. I was not given money for land which I owned on the site. I was not

given money to transport my household effects from the site.

Vitumbiko Mtegha

Smeda Chavula

We had a house, trees and fruit trees on the site which was built by my late father.

The house was under rent @MK5000.00 per month and rentals from the houses were

used for school fees for two children and other households’ needs. The compensation

given would not be enough to cater for a similar alternative houses.

Isaac Mkandawire

I had a garden and fruit trees and timber trees on the site. I was compensated about

MK1.2 million for timber trees and fruit trees only. I was not compensated for garden

where I used to cultivate food crops. I wanted to be assisted for compensation for

land. The money can help me to buy alternative land around the area. Land is not for

free around here.

Comments from Villagheadman Makhuwira Msiska

It is true that Mtegha family came here long time ago and they owned this land. The family is within

Makhuwira Msiska village. There is now shortage of land here as more and more people come here to live.

It will be difficult to find free land for garden which these people have lost here. There is need for

government to pay the affected people money so that these people buy land for gardens and for building

houses. People may not be able to give free land to Mtegha family at this stage.

Also consider the losses for land for houses and for trees as well.

The consultant thanked the project affected people and local village headman for comments and

contributions. The consultant informed the people that a report will be forwarded to National Council for

Higher Education and Mzuzu University in due course. The report will contain recommendations

The meeting was closed at 4.10 pm.

40

Annex 13: Summary of entitlements for various categories of project affected people.

CATEGORY OF PROJECT

AFFECTED PERSONS

TYPE OF LOSS ENTITLEMENTS FOR THE PROJECT AFFECTED PERSONS

Compensation for loss of

structure

Compensation for loss of land and

other assets

Compensation for loss of home and livelihoods

Property owners including those on

customary land regulated by

traditional authorities

Loss of land Cost at full replacement value

Land replacement at new site plus land clearing by the project.

Crop output replacement from gardens

Cash compensation for crops and trees at replacement values in scarce season

Loss of crop output from gardens

Allow sufficient time to harvest annual crops

Loss of structures –

residential premises or

business premises

Cost at full replacement value

Fence, brick work, wire and wood

Wastes water facilities

Connection to utilities

Access roads

Lump sum payment for replacement value building and loss of income from rented property based on number of months per tenant,

Socio-economic identity None None Disturbance allowance, transportation cost for relocation

Rehabilitation assistance, skill training , cash transfer project programme .

Residential tenant

Business tenant

Loss of rental

accommodation

Replacement of number of houses lost on the site

Replacement costs for non- movables

Disturbance assistance

Transportation assistance if relocating

Provision of rental fees for few months

Business tenant Loss of premises None Replacement costs for non- movables if installation was agreed with owners

None

Loss of business Payment of lost income at an agreed rate (say payment of six months of pas year average turnover)

Vendors Loss of hawkers Compensation at full replacement value for structure

None Payment of lost income at an agreed rate (say payment of six months of pas year average turnover)

final draft abbreviated resettlement action plan for

Documents