Resettlement Plan Due Diligence Report Document Stage: Updated Project Number: 34304 April 2014

NEP: Kathmandu Valley Water Supply Improvement

Project–Block Distribution System and Service

Reservoir (Package I)

Prepared by Project Implementation Directorate, Kathmandu Upatyaka Khanepani Limited (KUKL) for the Asian Development Bank.

Kathamandu Valley Water Supply Improvement Project

(ADB Loan No. 2776 NEP-SF)

Due Diligence Report of

Block Distribution System and

Service Reservoir (BDS-SRT) Package (BDS 1)

Project Implementation Directorate

Kathmandu Upatyaka Khanepani Limited (KUKL)

Anamnagar, Kathmandu

April, 2014

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Contents

A BACKGROUND ............................................................................................................................ 3

B PROJECT COMPONENTS ............................................................................................................ 3

II SCOPE OF LAND ACQUISITION AND RESETTLEMENT .................................................. . 5

III SOCIOECONOMIC INFORMATION AND PROFILE .................................................. .......... 8

A. SOCIOECONOMIC PROFILE ....................................................................................................... 8

B. GENDER CONSIDERATIONS ....................................................................................................... 9

IV Information disclosure, consultation, and participation .................................................. ..... 10

A. PUBLIC CONSULTATION .......................................................................................................... 10

B. INFORMATION DISCLOSURE ................................................................................................... 10

C. CONTINUED CONSULTATION AND PARTICIPATION ............................................................... 11

V GRIEVANCE REDRESS MECHANISM ........................................................................ ...................... 12

VI. POLICY AND LEGAL FRAMEWORK .......................................................................... ................... 15

A. ENTITLEMENTS ........................................................................................................................ 15

ANNEX-I RESETTLEMENT CATAGORIZATION CHECKLIST

ANNEX-II COMPENSATION PAYMENT STATUS

ANNEX-III PHOTOGRAPHS

ANNEX-IIV MAP OF RESERVOIR

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I PROJECT DESCRIPTION

A Background

1. The proposed Kathmandu Valley Water Supply Improvement Project1 will support the ongoing efforts of the Government of Nepal towards improving the water supply services in Kathmandu Valley. The project will invest in bulk water transmission and distribution network improvement systems, and will complement the past and ongoing Asian Development Bank (ADB) projects.2 The resultant synergy is expected to lead to increased efficiencies, greater improvement in service delivery, and higher impact on health outcomes and quality of life for inhabitants of Kathmandu Valley. 2. Kathmandu Valley is characterized by high urban population growth (estimated to be 6.6% per annum) and high population density (estimated to be more than 2,500 persons per km2).3 The total population of Kathmandu Valley is estimated to be 2.72 million in 2011, and is expected to hit 3.5 million in 2016. Rapid and largely unplanned urban growth, high population density, lack of sustainable water sources, and inadequate past investments in water supply infrastructure have resulted in abysmally poor availability and quality of drinking water.4 Moreover, poor access to sanitation facilities, improper solid waste management systems, and groundwater and surface water pollution from untreated domestic sewage have caused increased disease incidence, health risks, and associated economic burdens disproportionately impacting the poor and vulnerable.5

B Project Components

Initially the BDS consisted into three packages. But, two more BDS packages has been in Bharkatpur and Kirtipur and still in design. And now the total numbers of BDS packages are five. The package I consisted construction of three reservoirs namely Arubari tank 8500 CU.M. Capacity, Mahankal Chaur -2 tank 8000 CU.M. Capacity and New Bansbari tank 9500 CU.M Capacity. In pipe lying for this package, the size of pipe varies from 400 mm to 1400 mm. The total length of pipe for this package is 10.043 Km length. The package II consisted construction of two reservoirs namely New Panipokhari Tank 7500 CU.M. and Khumaltar 9500 CU.M capacity. In the pipe lying for this package, the size of pipe varies from 400 to 1100 mm. The total length of pipe for this package is 23.527 Km length. The

1 The project was prepared through PPTA 4893-NEP: Preparing the Kathmandu Valley Water Distribution,

Sewerage, and Urban Development Project, approved on 13 December 2006. Due to restructuring of ongoing loans, the work of PPTA started in 2009 and final report was submitted in May 2010.

2 Loan 1820-NEP (SF): Melamchi Water Supply Project was approved on 21 December 2000 and became

effective on 28 November 2001. Loans 2058/2059-NEP (SF): Kathmandu Valley Water Services Sector Development Program were approved on 18 December 2003 and became effective on 7 December 2004.

3 Estimated projections by the Central Bureau of Statistics, Government of Nepal, 2003.

4 A baseline survey done by CRISIL under PPTA 4893-NEP in September 2010 estimates water availability at

20 liters per capita per day (lpcd) and average duration of water supply at 0.4 hours per day. Kathmandu Upatyaka Khaneani Limited (KUKL), the operator, assesses the current availability as 45 lpcd.

5 Vulnerable groups include female-headed households and below poverty line households (the poverty line in current

terms is NRs 12,457 per capita/year). The national average household size in Nepal is considered 5.27 (Poverty Trends in

Nepal. National Planning Commission Secretariat, 2005). Therefore, it is assumed the poverty line is NRs 65,648 per

household/year.

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package III consisted construction of one water reservoir namely Balaju reservoir with 7000 CU.M. capacity. The length of pipe lying for this package is 15.57 Km and the, size of pipe varies from 500 to 1000 mm. In totality BDS includes the installation of about 49 km of water mains ranging in diameter from 400 mm to 1,400 mm along the Kathmandu Ring Road (two lanes in each direction, with a 9 m carriageway) and along major city road corridors. These water mains will feed five existing service reservoirs and five new service reservoirs. The BDS will feed these new RVT at Arubari, Mahankal Chaur II, Bansbari, Balaju, and Khumaltar. The service reservoirs provide water to the distribution network. Most of these pipes will be within wider roads with heavy traffic. Traffic management planning and implementation will be critical to ensure continued public support and limited impacts to businesses. Temporary disturbance to businesses is anticipated for 3-5 days per 100-200 m trench of the BDS component. Full road closure is not anticipated, as the Ring Road is a primary traffic artery within Kathmandu. Good construction practices and traffic management measures, including night works, will ensure continued access to businesses and limited disruption to business activity. In a few areas, vendors and hawkers will require temporary relocation, and will be provided assistance by the contractor in relocating and shifting.

Location map of package I

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II SCOPE OF LAND ACQUISITION AND RESETTLEMENT

3. There is no land acquisition under the proposed project. All land for service reservoirs were previously acquired under the ongoing ADB Loan 1820. (Ref. Annex II). The impacts resulted from land acquisition has already been addressed. The reservoir construction area is fenced with compound wall and blocked access of public. So, during the time of reservoir construction no impacts are anticipated in private land and business. The pipe line route for BDS package I follow more than 25 to 30 meter wide ring road and follows service track. The construction works within the right of way (RoW) for the Bulk Distribution System (BDS),6 The temporary disruption for BDS approximately was estimated 3-5 days for BDS (from open trench to backfill). Trench sections for BDS will be 50-100. Contractors are required to maintain access to shops to avoid and limit the disturbance to the extent possible, and mitigation measures are incorporated into their contracts and monitored by the construction supervision consultants. Temporary economic impacts to businesses along the BDS routes are expected to be short term, and avoided and/or mitigated through good traffic management planning and implementation, night works, and maintaining access to shops during the construction period, as outlined in the Environmental Management Plan (EMP).7 Under the BDS, some mobile hawkers and vendors, including those with stalls and temporary structures, will be assisted by contractors in moving to alternative locations during the brief period of construction, and allowed to return once the area is declared complete of construction, usually within 5 days. In the event roads are fully closed, with access to shops disrupted, compensation for lost income will be made for the time of disruption.8. The entitlement matrix has provisioned those businesses that experience full closures during the pipe lying period are entitled for compensation. Based on detail design of the pipe route alignment and reservoir construction area the disruption will be short and none of the business will experience full closure 4. The Ring Road, where the BDS will be laid, is a major transportation artery within Kathmandu with pockets of dense commercial activity. It consists of two lanes in each direction with a total of 18-20 m carriageways on each side and a moveable barrier in some stretches. The total RoW of the Ring Road is approximately 20-30 m wide. Closing the Ring Road during construction is not an option, as expressed by local authorities; therefore, good traffic management by the contractors in coordination with police, roads department, local VDCs, and communities is critical to ensure smooth flow of vehicles, safe passage of pedestrians, and limited business impacts. The construction method for BDS is open trenching with heavy excavation machinery. The contractors will be required to maintain access to shops during trenching (metal planks, spaces, etc), which is expected for 5-7 days for larger sized pipes (800-1,400 mm). Prior to construction, contractors and DSC, with the assistance of the community participation consultants, will be required to provide at least 1-2 weeks advance notice, along with an awareness campaign involving local area committees (Tole committees). Vendors: BDS works outside the carriageway will require temporary shifting of vendors. The areas of particular heavy vendor activity are in Narayangopal, Chabahil, and Bansbari area.

6 In some areas along the ring road, works are proposed outside the carriageway or shoulder, while still within

the RoW. In these areas, no impacts are anticipated for vendors in these area. 7 To ensure disturbance is minimized to the extent possible, contractors will be required to expedite works in

front of businesses, provide pedestrian planks across trenches, manage traffic flows, conduct works at night, etc.

8 The full closure of roads is expected to be minimal under the project, and based on discussions with

contractors under the pilot DNI, is estimated to be around 20% of total roads in the planned DNI areas. Full closure is not expected in BDS areas, but more limited to DNI zones, where night works will also be considered to limit impacts. If closed, full closure is not expected to exceed 3-5 days.

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The project construction activities don't disrupt vendors permanently. The vendors experience partial disturbance during the pipe lying period. The contractors are requested to work mainly night and less traffic time.

Table 1: BDS Works and Potential Impacts

Component Stretches

Pipe

Dia.

(mm)

Length

(m)

Estimated

period of

access

disruption

Estimated

number of

vendors to

be

temporarily

Construction

method

(night/day)

Ring Main Existing Mahankal Chaur Reservoir to Chabahil Chowk 1400 909 5-7 days No

vendors Night works

Rain Main Chabahil Chowk to Narayan Gopal Chowk 1400 2922

4-5 days No vendors

Night and

day works

Feeder

Main J2 (Near Arubari Tank) to Arubari Tank 700 30

5-7 days No vendors

Night works

Feeder

Main J4 (Near Mahankal Chair Tank) to Mahankal Chaur Tank 900 130

4-5 days No vendors

Night works

Feeder

Main Narayn Gopal Chowk to New Bansbari Tank 900 1786

5-7 days 10 vendors

Night and day works

Ring Main Chabahil Chowk to Gaushala Chowk 1000 1193 4-5 days No

vendors Night works

Ring Main Khasi Bazar (Kalanki) to Sita Petrol Pump (Ch. 5+500 Km

to Ch. 5+800 Km) 700 250

5-7 days No vendors

Day (outside

carriageway)

Ring Main Sita Petrol Pump to Balkhu (Ch. 5+800Km to Ch. 6+750

Km) 400 950

4-5 days No vendors

Day (outside

carriageway)

Ring Main Near Ekantakuna to Talchikhel Chowk (Ch. 9+500 Km. to

Ch. 11+382 Km) 400 1882

5-7 days No vendors

Table No 2 Construction of Service Reservoirs

Reservoir Site Capacity (CU.M)

Arubari Tank 8500

Mahankal Chaur-2 8000

New Bansbari Tank 9500

BDS = Bulk Distribution System, m = meter, mm = millimeter.

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5. The following mitigation measures are proposed in the EMP to avoid and/or reduce the impacts to businesses during linear pipe works:

(i) Provide at least 1-2 weeks prior advance notice to the community along the stretch and conduct awareness campaigns in coordination with contractor, DSC, and community participation consultant. Distribute project information.

(ii) Maintain access to avoid disturbance to residents and businesses by providing planks and leaving spaces for businesses and residents to maintain access.

(iii) Manage traffic flows as per traffic management plan prepared by the contractor in coordination with local authorities and communities, and conduct works at night where possible.

(iv) Limit amount of time when trenches are open, and complete works quickly where lots of businesses are located.

(v) Avoid full street closure to extent possible. (vi) Provide employment opportunity to the affected people.

Place Implementation Directorate Kathmandu Upatyaka Khanepani Limited

(PID KUKL) phone hotline in visible areas. Make community fully aware of

grievance mechanism and provide contact information of Project

(vii) Contractors will assist vendors and hawkers in shifting to alternative location.

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III SOCIOECONOMIC INFORMATION AND PROFILE

A. Socioeconomic Profile

6. Description of Package I Area. The package I service area is lies in Kathmandu Metropolitian City and Khadka Bhadrakali, and Jorpati VDC of Kathmandu district. The reservoir of Bansbari is located in Khadkabhadrakali VDC where the pipeline route passes through the Chhabahil, Sukedhara, Maharanjgung and Bansbari. The pipeline route is in ring road area. Demographic composition. There are 436,344 households in Kathmandu district where the population of male and female population are 913,001 and 831,239 and total population is 1,744,240 and average households' size 4.00 (census, 2011). The total population of service area is 1,003,285 in which male population is 533,127 and female population 470,158 and 354,764 households (census, 2011). 7. Social classification. The caste composition of project beneficiaries is heterogonous. Newar is the prominent inhabitants of Kathmandu valley. In terms of caste/ethnic composition of project beneficiaries' people 23.51% are Brahmin, 21.96% are Newar, 19.93% are Chhetri, 8.15% are Tamang and 4.01% are Magar. The percentage of Hindu followers is 91% and others are about 9%. In the Kathmandu Valley, Newar are considered an advanced indigenous people group. This group comprises about 41% of the valley population.

8. Age. The economically active age group between 15 and 59 years constitutes about 73.25% of the affected population. The other main age group 5 to 14 years is about 23% and 60 years over groups constitute about 4.75% of the affected population. There are no significant differences in the percentage of age distribution in package I area.

9. Health. The availability of health services in package I area is satisfactory. The government and private sector are operating health services in this service area. Altogether 4 government health centres, 11 private sector hospitals (214 beds) and 85 private clinics are operating in the area. In the service area 99% have toilet facility where as 1% have open defection practices. The gastric, asthma, fever and jaundice are common disease found among the affected people in service area.

10. Education. The Kathmandu Valley has long been considered the centre for higher education in Nepal. The literacy rate of Kathmandu district is 95.2%. The numbers of educational institutions in Kathmandu Valley are 826 school level and 186 college and university level education institutions where as in BDS package I service area 45 schools and 21 colleges are in operation. (District Profile, Kathmandu district, 2011). 11. Employment. The economy of the Kathmandu Valley is based on trade, commerce, and manufacturing industries like carpets and garments. Other economic sectors are agriculture, education, transport, hotels, and restaurants. Tourism is also a key component of the valley’s economy. However, in the rural areas, the economy is still based on agriculture.

12. However, the National Living Standard Survey 2010-2011 indicates that about 55.7% of the economically active population of 10 years of age and above in urban Kathmandu Valley is employed in the agriculture and non-agriculture sector, of which only 17% depends on farm activities. It means that about 83% of this group of population depends on non-farm activities such as manufacturing (24.0%), trade (42.6%), service sectors (28.6%), and other works (4.8%).

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13. Economically active population. About 68.72`% of the total population in the valley aged 16 and above are economically active (Census 2011). Majority of the population of the Kathmandu Valley are engaged in agriculture and forestry (36%). The other major industries are manufacturing (17%), commerce (16%), construction (4%), and transportation/communication (3%). Among the affected population, at least one of their family members is engaged in service or any other income generating sources except business.

14. Poverty. The National Living Standard Survey 2010/11 indicates that about 25.16 % of the population of Nepal lives below the poverty line. According to the NLSS Survey 2011, an individual is considered poor if his/her per capita total annual consumptions is below Rs. 19,261. It has also categorized the food items and non food items and the expenses required to be above the poverty line. Accordingly, the income required for providing adequate calories (2,220 kilocalorie) for an average Nepali to be active is Rs 11,929. For non-food items, for an average, the average income required is Rs. 7,332. Nepal Living Standard Survey conducted by CBS in 1995/96, 2003/04 and 2010/11 revealed that between the three surveys there had been substantial decrease in the poverty in Nepal. The survey shows that poverty had decreased faster in the urban areas from 1995/96 to 2003/04. However, the urban poverty has increased from 9.6 % to 15.5 % from 2003/04 to 2010/11, where as there was substantial decrease of poverty in rural areas10.

15. Slums and squatter settlements. The rapid population growth has created a number of slums and squatter settlements in the Kathmandu Valley. But the numbers of slums and squatters are comparatively low in BDS package I service area. And based in detail design no slums, squatters and hawkers will be affected by the construction activity.

B. Gender Considerations

16. The project will provide universal connections, including for poor and vulnerable households, including female-headed households. Employment will also be granted to females, with equal pay for men and women. In addition to the measures provided for addressing the gender concerns of the affected households, the resettlement plan will be implemented in consonance with the gender equity and social inclusion (GESI) plan for the project. 17. Women-headed households. According to the 2011 census, about 12% of households have been reported as female-headed in Kathmandu valley. Among the affected none of them were female headed households.

9 For the food item only, this has been calculated as NRs.11,929 per person per year (National Planning Commission of Nepal, Nepal Living Standard Survey 2010/2011).

10Key reasons for the reduction in poverty include (a) the significant inflow of remittances, (b) decline in fertility rates, (c) increases in farm wages over the past decade and, importantly, (d) urbanization and the associated increase in high productivity economic activity compared with the lower productive activities of rural areas.

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IV Information disclosure, consultation, and participation

A. Public Consultation

18. While preparing this Due Diligence Report (DDR) an extensive consultation program with project affected households and stakeholders were carried out, in line with the requirements pertaining to environment and social considerations of ADB. The public, business owners, affected people and shopkeepers were informed about the possibility of disruption to the business. The tools used for consultations were stakeholder workshops and meetings, and focus group discussions (FGD). These consultations provided inputs for identification of the felt needs of the communities, and the relevant stakeholders. In BDS package I route alignment and vendors, business owner were informed about the possibility of disruption to the business. During the visits, the AP's were asked the status of compensation payment status and potential temporarily impacted areas that could experience partial disruption of roads/galli. In the pipe line route and reservoir construction area extensive consultations were carried out and informed the project activities and possible short disturbance during construction work. The table below no 3 shows the date, location, issues raised by the local people and detail issues raised during the public consultations.

Table no.3 Public Consultation Matrix

Date No. of Participants

Location Participants attended

Topic/issues discussed

Information disseminated

12 March. 2014

Male:7 Female:8

Mahankal Local vendors, local people, project benefices

Traffic diversion, business disruption, quality of works and, employment

Appropriate alternative route traffic management will be carried out, priority to local people in job, compensation will be provided for full time disruption

15 March 2014

Male:6 Female:3

Khadkra Bhadrakali

Vendors and project benefices

Wage discrimination, Compensation package, construction time

No discrimination in wage rate, construction time will be in less traffic period and complete rehabilitation work immediately

B. Information Disclosure

19. To provide for more transparency in planning and for further active involvement of beneficiary people and other stakeholders, project information was disseminated through disclosure of the translated versions of the DDR. The information will be made available at public places, including the offices of PID, KUKL main office and branch offices, contractor site office and Ward Office of Kathmandu Metropolitian city. A copy of the DDR will be disclosed on the ADB and project related websites, and is also available from PID upon request.

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C. Continued Consultation and Participation

20. The PID has extended and expanded the consultation and disclosure process during the detailed design stage and will be continued during construction period of the project. CAPC has been recruited to ensure ongoing consultations and public awareness during project implementation. This has been coordinate with the PID, design and supervision consultant (DSC), and contractors to ensure that communities are made fully aware of project activities in all stages of construction. A community awareness and participation plan was also prepared for the project and implementing by CAPC in coordination with the PID and DSC safeguards expert. Community groups such as TLO and vendor associations have been consulting and made aware of the civil works and project activities prior to construction.

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V GRIEVANCE REDRESS MECHANISM

21. A grievance redress mechanism (GRM) has been established (safeguard officer from PID, safeguard expert from DSC, CAPC, contractor and TLO member) in PID to receive, evaluate, and facilitate the resolution of affected people’s concerns, complaints, and grievances about the social and environmental performance at the level of the project. A Community Issue Resolution Team (CIRT) is also established to address the grievances immediately in the field level. The Safeguard officer from PID has been assigned as coordinator for grievance handling. The name and contact number for GRM team has been mentioned in brochure and leaflets. The GRM aims to provide a trusted way to voice and resolve concerns linked to the project, and to be an effective way to address affected people’s concerns. The GRM for the project is outlined below, and consists of three levels with time-bound schedules and specific persons to address grievances. 22. First level of GRM. The first level and most accessible and immediate contact for the fastest resolution of grievances by CIRT (contractors, CAPC, TLO member and DSC supervisor) on site. Prior to construction of any works, CAPC, DSC, and contractors are to hold local community meetings to notify the local residents and businesses of the temporary disturbance, and to inform them of the project. If a local area committee (tole committee) exists in the area, they should also be informed and made aware of the project. If any complaints arise, the contractors, DSC, and PID can immediately resolve the complaint on site, and if necessary, with the assistance of the local tole committee. The PID office can also be involved in grievance redress at this stage. The Contractor and CAPC office phone number will be posted in public areas within the project area and construction sites. Any person with a grievance related to the project works can contact the project to file a complaint. The CAPC consultants will document the complaint, and immediately address and resolve the issue with the contractor within 1-2 days, if the complaint remains unresolved at the field level. The assistance of the DSC safeguards specialists (the environmental specialist or social safeguards specialist) to help resolve the issue. The CAPC consultants will notify the PID safeguards unit that a complaint was received, and whether it was resolved. The CAPC will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved. 23. Second level of GRM. Should the grievance remain unresolved; the CAPC consultants will forward the complaint to the PID safeguards unit. The person filing the grievance will be notified by the CAPC consultants that the grievance was forwarded to the PID safeguards unit. The PID safeguard unit Chief will address the grievance. Grievances will be resolved through continuous interactions with affected persons, and the PID will answer queries and resolve grievances regarding various issues, including environmental, social, or livelihood impacts. Corrective measures will be undertaken at the field level by the PID safeguards staff within 7 days. The relevant safeguards unit staff will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved. 24. Third level of GRM. Should the grievance remain unresolved, the PID project director will activate the third level of the GRM by referring the issue (with written documentation) to the local Grievance Redress Committee (GRC) of the KUKL, who will, based on review of the grievances, address them in consultation with the PID safeguards unit, project director, and affected persons. The local GRC will consist of members of the PID, affected persons, and local area committee, among others determined to provide impartial, balanced views on any issues. The GRC should consist of around five persons. A hearing will be called with the GRC, if necessary, where the affected person can present his or her concerns/issues. The process will promote conflict resolution through mediation. The

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local GRC will meet as necessary when there are grievances to be addressed. The local GRC will suggest corrective measures at the field level and assign clear responsibilities for implementing its decision within 15 days. The functions of the local GRC are as follows: (i) to provide support to affected persons on problems arising from environmental or social disruption, asset acquisition (if necessary), and eligibility for entitlements, compensation and assistance; (ii) to record grievances of affected persons, categorize and prioritize them, and provide solutions within 15 days; and (iii) to report to the aggrieved parties developments regarding their grievances and decisions of the GRC. The PID safeguards officers will be responsible for processing and placing all papers before the GRC, recording decisions, issuing minutes of the meetings, and taking follow-up action to see that formal orders are issued and the decisions carried out. 25. Fourth level of GRM. In the event that a grievance is not addressed by the contractor, DSC, branch office, PID, or GRC, the affected person can seek legal redress of the grievance in the appropriate courts, the fourth level of the GRM, which is the formal legal court system. The grievance redress mechanism and procedure is depicted in Figure 1.

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Figure 1: Grievance Redress Mechanism (GRM)

DSC= design and supervision consultant, GRM= grievance redress mechanism, PID= project implementation directorate.

Affected Person

Field Level:

Contractor,

DSC,CAPC

Not Redressed

Not Redressed

Not Redressed

4th Level Grievances

Higher Authority/

Court of Law

15 Days Grievance

Redressed

Grievance

Redress

Committee

3rd Level Grievances

7 Days Grievance

Redressed

PID

Safeguards

Unit

2nd Level Grievances

1-2 Days Grievance

Redressed

1st Level Grievances

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VI. POLICY AND LEGAL FRAMEWORK

26. ADB Safeguards Policy Statement (2009). The three important elements of the ADB’s Safeguards Policy Statement (SPS) are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. In addition, the absence of legal title to land should not be a bar to compensation. ADB SPS requires compensation prior to actual income loss. In cases where the contractors know which streets will be closed and for how long, compensation can be paid out to the businesses prior to construction.

27. Government of Nepal Laws. As there is no land acquisition, the government’s policies, e.g. The Land Acquisition Act, 2034 (1977) are not relevant for this project. The Government of Nepal has no policy to compensate for temporary impacts during construction.

A. Entitlements

28. The entitlement matrix (Table 4) summarizes the main types of losses and the corresponding entitlements in accordance with the ADB policies. In addition to temporary impacts, the entitlement matrix also covers damages to structures during construction.

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Table 4: Entitlement Matrix

Type of Loss Entitlement Unit Description of Entitlement and Implementation

Procedures

Remarks Responsibility

1.Damages caused during construction

1.1 Government and

private structures

• Titleholder

• Tenant

• Informal settlers on government land

Where damages occur to private, community, or

government property as a result of construction

works, the cost of restoring these to at least their

original condition will be the responsibility of the

contractor as part of their contract.

Extreme care should be taken by

the contractors to avoid

damaging any properties during

construction. Compensation for

the losses will be borne by the

contractor.

Contractor/PID/DSC/CAPC

2. Community facilities and resources

2.1 Loss of

community

structures

Local community Restoration of affected community buildings and

structures to at least previous condition, or

replacement in areas identified in consultation with

affected communities and relevant authorities will be

carried out.

Extreme care should be taken by the

contractors to avoid damaging any

properties during construction.

Compensation for the losses will be

borne by the contractor.

Community structures include service

roads, inner roads, temples,

footpaths/trails, culverts, and water

points.

Contractor/PID/

CAPC

2.2 Loss of drinking

water and sanitation

Residents and businesses There will be immediate replacement and restoration

of the water points.

The time gap between the

construction of new system and

transfer from the old system should

be minimized. Alternative sources of

water should be made available

during the construction period.

Contractor/PID/DSC/

CAPC

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Type of Loss Entitlement Unit Description of Entitlement and Implementation

Procedures

Remarks Responsibility

3. Temporary loss of income

3.1 Temporary loss

of business

• Titleholder

• Licensed and non-licensed vendors, and titled and non-titled households/tenants

Businesses are entitled to compensation for each day

of disturbance on fully closed roads. An income

survey will serve as the cut-off date. All businesses

identified in the project-impacted areas (sections

ready for construction) on the cut-off date will be

entitled to compensation for their lost income based

on the tax record or, in its absence, comparable rates

from registered businesses of the same type with tax

records. For shops not qualifying under these

categories (hawkers, vendors, etc.), there is the

option of using the actual income based on survey

followed by a verification of the income data based on

comparable incomes in the project area.

Mobile hawkers and vendors will be assisted by

contractors in moving to alternative locations during

the period of construction.

An income survey prior to

construction will serve as the

cut-off date.

DSC/PID/ CAPC

3.2 Vulnerable persons

Female-headed, and below poverty line households , the annual poverty line data is NRs. 19,261 per capita/year or NRs 93,994 per household/year: NLSS Survey, 2011

Vulnerable persons will be entitled to preferential employment (unskilled labor) under the project.

Vulnerable persons will be identified during income survey, with the list given to PID and contractor.

DSC/PID/ CAPC /contractor

4. Structures

4.1 Temporary loss of structures in right of way

Temporary or semi-permanent structures or stalls that belong to licensed and non-licensed vendors, and titled and non-titled households

Affected persons will: (i) receive advanced notice of at least 2 weeks; (ii) have rights to salvage materials from structure; (iii)receive assistance in shifting to nearby location; and (iv) be allowed to return to original site after completion of construction works.

There will be temporary shifting for 5-7 days during period of construction. DSC CAPC and contractor will identify alternative site and help in shifting.

Contractor/ DSC/PID/CIRT

DSC = Design and Supervision Consultants, PID = Project Implementation Directorate.

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ANNEX – I Kathmandu Upatkaya Khanepani Limited

RESETTLEMENT CATEGORIZATION A. Project Data Sub'project Title: BDS Package I B. Screening Questions for Resettlement Categorization

Probable social impacts Yes No Remarks

Will the project include any physical construction work? √

Does the project include upgrading /rehabilitation nor new construction? √

Construction of new reservoir tank and pipe lying works

Are any project effect likely leads to loss of housing, other assets, resource use or incomes/livelihoods?

√

Does land required for the project? √

Does the land compensation need to pay for land or any loss?

√ The compensation is paid under loan 1820, minute is attached

Is the ownership status and current usage of the land known? √ NA

Will there be loss of housing?

√

Will there be loss of agricultural plots?

√ No agricultural land will disrupted

Will there be losses of crops, trees, and fixed assets?

√ No crops & trees will be disrupted.

Will there be loss of businesses or enterprises?

√

Will there be loss of incomes ?

√

Will the vendors experience full closure?

√ Partial disruption is expected

Will people lose access to facilities, services, or natural resources? √

Will any social or economic activities be affected by land use.related changes? √ Water scarcity will met

C. Information on Affected Persons: Any estimate of the likely number of households that will be affected by the sub.project?

[√ ] No [ ] Yes If yes, approximately how many?

Are any of them tenants, bonded labor or vulnerable to poverty risks?

[√ ] No [ ] Yes If yes, please briefly describe their situation .

After reviewing the answer above, it is determined that the sub.project is

A

[ ] Categorized as A project, a full Resettlement Plan is required

[ ] Categorized as B project, a short Resettlement Plan is required

[√ ] Categorized as C project, no Resettlement Plan is required

19

ANNEX-II

Compensation Payment and Land Acquisition Status of Reservoir

S.N. Ward No.

Old Plot

Total Area Affected Area Area Owner's Name Rate per Ropani

Amount Rs. Date Remarks

R A P D R A P D (Ropani) Sq meter

1 8 Ka 155 0 8 0 0 0 1 0 0 0.0625 31.97 Lina Tuladhar 2,080,000 130,000 27/8/2002

2 8 Ka 158 2 9 3 0 1 9 0 0 1.5625 794.92 Nain Kumari Khatri 2,080,000 3,250,000 27/8/2002

3 8 Ka 167 3 3 0 2 2 8 2 0 2.5313 1287.79 Satrughan P. Upadhya 2,080,000 5,265,104 28/8/2002

4 8 Ka 87 1 10 0 0 1 8 3 0 1.5469 786.98 Ang Phulhan Sherpra 2,080,000 3,217,552 28/8/2002

5 8 Ka 88 3 13 0 0 1 4 0 0 1.25 635.93 Rama KC 1,300,000 1,625,000 29/10/2002

6 8 Ka 298 2 2 0 0 0 2 0 0 0.125 63.59 Narahari, Mitharam Khatri

2,080,000 260,000 22/11/2002

Total 7.0782 3601.18 13,747,656

20

Annex III Photographs

Consultation meeting with community people

Information dissemination and consultation

21

MAP OF RESERVOIR