nigeria final draft rev 1 resettlement action plan – nigeria · 2016. 7. 17. · nigeria final...

NIGERIA FINAL DRAFT REV 1

ResettlementAction Plan – NigeriaWest African Gas Pipeline

June 2004

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NIGERIA FINAL DRAFT REV 1

ResettlementAction Plan – NigeriaWest African Gas Pipeline

Prepared for

West African Pipeline Company

June 2004

AdministratorRP254v.3

Disclosure Locations

Venues at which the Environmental Impact Assessments, Appendices, and Resettlement Action Plans – and Other Documents Supporting the West African Gas Pipeline Project – have been Disclosed to the Public are as Follows:

Country Venue Location UNITED STATES World Bank Offices Washington, DC MIGA Washington, DC NIGERIA WAGP EA Rep Office Lagos Lagos State Ministry of Environment Lagos Ogun State Ministry of Environment Abeokuta Liaison Office Federal Ministry of Environment Lagos Liaison Office Federal Ministry of Environment Abeokuta Badagry Local Government Office Badagry Ado Odo Ota Local Government Office Ado Odo Ota Ifo Local Government Office Ifo Ogun State Ministry of Lands and Housing Abeokuta Lagos State Lands Bureau Lagos Federal Ministry of Environment Abuja TOGO WAGP EA Rep Office Lomé Ministère de l´Environnement et des Ressources Forestières Lomé Gbetsogbe Palace Gbetsogbe Domocile du chef traditionnel Gbetsogbe Baguida Baguida Ministère de l’Énergie et des Ressources Hydrauliques Lomé Ministry of Land Affairs Lomé BENIN WAGP EA Rep Office Cotonou Documentation Center of the Ministry of Environment, of

Habitat and Urbanism (MEHU) Cotonou

Beninese Agency for Environment (ABE) Cotonou Documentation Center of Ministry of Mines, Energy and

Hydraulic (MMEH) Cotonou

Mayoralty of Abomey-Calavi Abomey-Calavi Mayoralty of Ouidah Ouidah Institute of Endogenous Development and Exchanges (IDEE) Ouidah Documentation Center of the University of Abomey-Calavi Abomey-Calavi GHANA WAGP EA Rep Office Tema EPA Library Accra Greater Accra Regional Coordinating Council Accra EPA Greater Accra Regional Office Amasaman Accra Metropolitan Assembly Accra Shama Ahanta East Metropolitan Assembly Sekondi EPA Central Regional Office Cape-Coast Central Regional Coordinating Council Cape-Coast Western Regional Coordinating Council Sekondi EPA Zonal Office Tema Tema Municipal Assembly Tema EPA Western Regional Office Sekondi Volta Regional Coordinating Council Ho EPA Volta Regional Office Ho Ghana EPA Accra

Table of Contents

June 2004 Nigeria Final Draft RAP Rev 1 TOC-1

Table of Contents

Page List of Acronyms and Abbreviations

Executive Summary

Chapter 1 Introduction ............................................................................................................ 1

1.1 Brief Description of Project .............................................................................................. 1-1 1.1.1. Value of the Project ............................................................................................. 1-6

1.2 Project-Affected Peoples and Areas ................................................................................. 1-8 1.3 Resettlement Implementing Agencies ............................................................................ 1-16 1.4 Key Issues of Involuntary Resettlement and Land Acquisition...................................... 1-19 1.5 Land Acquisition and Resettlement Plan Objectives ...................................................... 1-20 1.6 Progress to Date .............................................................................................................. 1-21 1.7 Program for RAP Implementation .................................................................................. 1-22 1.8 Scope of Resettlement Action Plan................................................................................. 1-22

Chapter 2 Project Description ...............................................................................................2-1

2.1 Layout of Pipeline............................................................................................................. 2-1 2.1.1 General Route ...................................................................................................... 2-1 2.1.2 Determination of Route ....................................................................................... 2-2

2.2 Right-of-Way Configuration............................................................................................. 2-3 2.3 Pipeline and Facility Description...................................................................................... 2-3

2.3.1 Alagbado “Tee” ................................................................................................... 2-3 2.3.2 Onshore Pipeline.................................................................................................. 2-4 2.3.3 Lagos Beach Compressor Station and Primary Control System.......................... 2-6 2.3.4 Offshore Main Trunk Line and Laterals .............................................................. 2-8

2.4 Transportation Routes....................................................................................................... 2-8 2.4.1 Alagbado Tee....................................................................................................... 2-8 2.4.2 Onshore ROW Nigeria......................................................................................... 2-8 2.4.3 Lagos Beach Compressor Station ........................................................................ 2-8

2.5 Construction.................................................................................................................... 2-10 2.5.1 Temporary Storage and Accommodation Areas................................................ 2-10 2.5.2 Construction Methods........................................................................................ 2-10 2.5.3 Construction Schedule and Duration ................................................................. 2-14

2.6 WAPCo Policy on Public Access ................................................................................... 2-15 2.6.1 Facility Footprints.............................................................................................. 2-15 2.6.2 ROW: Pipeline Burial Zone.............................................................................. 2-15 2.6.3 ROW: Area not included in Pipeline Burial Zone ............................................ 2-16 2.6.4 Transportation Routes Transecting the Pipeline ROW...................................... 2-16 2.6.5 WAPCo Maintenance and Patrol Roads within ROW....................................... 2-17

2.7 Compensation for Lost Assets ........................................................................................ 2-17 2.7.1 Summary of Land Requirements ....................................................................... 2-18

Chapter 3 Policy and Legislative Framework ....................................................................3-1

3.1 Introduction....................................................................................................................... 3-1

Table of Contents


3.2 International Project Agreement or Host Government Agreement................................... 3-2 3.3 National Legislative Framework....................................................................................... 3-4

3.3.1 Laws on the oil/gas sector as they may be relevant for the WAGP..................... 3-4 3.3.2 Law on compensation for land and other assets .................................................. 3-5 3.3.3 Law of expropriation or Eminent Domain........................................................... 3-6 3.3.4 Laws governing acquisition of state-owned assets, including land ..................... 3-7 3.3.5 Laws governing acquisition of tribal and community properties, including water

resources, irrigation schemes, and access roads................................................... 3-7 3.3.6 Law of Land Registration, Land Ownership and Property Rights under different

local regimes ........................................................................................................ 3-7 3.3.7 Construction rights and ROW enforcement......................................................... 3-8

3.3.8 Laws pertaining to resettlement, re-location........................................................ 3-9 3.3.9 Appeals procedures as specified in national legislation..................................... 3-10 3.3.10 Laws regarding protection of cultural assets...................................................... 3-10

3.4 Project Measures to Ensure Compliance with World Bank Group Resettlement Guidelines ....................................................................................................................... 3-10

Chapter 4 Overview of Project-Affected Communities .....................................................4-2

4.1 Introduction....................................................................................................................... 4-2 4.2 General Findings of the Socioeconomic Survey............................................................... 4-3 4.3 Survey Instruments ........................................................................................................... 4-4

4.3.1 SIA Community Survey....................................................................................... 4-5 4.3.2 Public Consultations ............................................................................................ 4-6 4.3.3 Estate Survey ....................................................................................................... 4-6 4.3.4 Preliminary Qualitative Study in Support of the RAP......................................... 4-6 4.3.5 Secondary Sources ............................................................................................... 4-7

4.4 General Description of Project-Affected Communities.................................................... 4-7 4.4.1 Population .......................................................................................................... 4-11 4.4.2 Demographics .................................................................................................... 4-12 4.4.3 Ethnic Groups .................................................................................................... 4-13 4.4.4 Household Structure and Size............................................................................ 4-14 4.4.5 Community Leadership and Govern4-ance ....................................................... 4-14 4.4.6 Historical and Cultural Resources4- .................................................................. 4-15 4.4.7 Access to Infrastructure and Quality of Life...................................................... 4-15

4.5 Micro-economic Situation .............................................................................................. 4-21 4.5.1 Labor Force and Patterns of Work..................................................................... 4-21 4.5.2 Household Income and Expenditures ................................................................ 4-26

4.6 Land Tenure, Ownership and Tenancy ........................................................................... 4-36 4.6.1 Land Tenure and Residential Ownership........................................................... 4-37 4.6.2 Project Affected Lands ...................................................................................... 4-39

4.7 Agricultural Activities .................................................................................................... 4-39 4.7.1 Tree Cover on Affected Lands........................................................................... 4-39 4.7.2 Crops Grown on Affected Lands ....................................................................... 4-40 4.7.3 Inter-cropping .................................................................................................... 4-41 4.7.4 Issues involved in measurement of produce value............................................. 4-41 4.7.5 Issues involved in re-instating cropping patterns............................................... 4-41

4.8 Use of Communal Land and Resources.......................................................................... 4-42 4.8.1 Pastures and grazing lands ................................................................................. 4-42 4.8.2 Water resources (rivers, streams, lakes) ............................................................ 4-42

Table of Contents


4.8.3 Irrigation Schemes ............................................................................................. 4-42 4.9 Vulnerable Groups.......................................................................................................... 4-42 4.10 Attitudes toward the Project............................................................................................ 4-48

4.10.1 Perceptions of impacts of the project for local residents ................................... 4-48 4.10.2 Perception of Project Impacts on Communities................................................. 4-49 4.10.3 Community Suggestions to Mitigate Potential Negative Impacts ..................... 4-49

Chapter 5 Land Acquisition Procedures and Implementing Responsibilities.................5-1

5.1 Goals ................................................................................................................................. 5-1 5.2 Overview of Land Acquisition Strategy ........................................................................... 5-2

5.2.1 General Principles................................................................................................ 5-2 5.2.2 Types of Land to be Acquired ............................................................................. 5-4 5.2.3 WAGP Right-of-Way Access Policy................................................................... 5-5

5.3 Land Acquisition Procedure ............................................................................................. 5-8 5.3.1 Identification of Pipeline Route and Affected Land .......................................... 5-13 5.3.2 Identification and Registration of Property Owners and Other Affected People ................................................................................................................ 5-14 5.3.3 Public Notification and Comment Procedure: Procedures for

Finalization/Verification of Registration and Approved List of Affected Persons ............................................................................................................... 5-15 5.3.4 Negotiation Procedures...................................................................................... 5-18

5.4 Valuation Methods.......................................................................................................... 5-23 5.4.1 OPTS Standards................................................................................................. 5-24 5.4.2 Basic Principles Underlining Valuation............................................................. 5-25 5.4.3 Compensation .................................................................................................... 5-26

5.5 Implementation Roles and Responsibilities.................................................................... 5-28 5.5.1 WAPCo Roles.................................................................................................... 5-28 5.5.2 Key Responsibilities .......................................................................................... 5-31 5.5.3 External Roles and Responsibilities................................................................... 5-32 5.5.4 RAP Fund .......................................................................................................... 5-33 5.5.5 Community Development.................................................................................. 5-34

5.6 Implementation Issues and Solutions.............................................................................. 5-35 5.6.1 Ensuring Accurate Registration and Compensation Disbursement ................... 5-35 5.6.2 Identification of Absentee Owners .................................................................... 5-36 5.6.3 Resolution of Owner Disputes ........................................................................... 5-36

Chapter 6 Project Impacts and Mitigation Measures........................................................6-1

6.1 Summary of Land Acquisition.......................................................................................... 6-1 6.2 Affected Populations: Landowners and Tenants ............................................................ 6-10 6.3 Summary of Land Acquisition Impacts .......................................................................... 6-13

6.3.1 Impoverishment Risks and Reconstruction Model ............................................ 6-13 6.3.2 Landlessness ...................................................................................................... 6-15 6.3.3 Homelessness..................................................................................................... 6-18 6.3.4 Loss of Access to Property and Resources ........................................................ 6-18 6.3.5 Joblessness ......................................................................................................... 6-25 6.3.6 Food Insecurity .................................................................................................. 6-31

6.4 Mitigation Measures ....................................................................................................... 6-32 6.4.1 Types of Mitigation Proposed............................................................................ 6-32

Table of Contents


6.4.2 Summary of Entitlements .................................................................................. 6-36

Chapter 7 Public Consultation and Disclosure...................................................................7-1

7.1 Participation and Consultation Activities ......................................................................... 7-3 7.1.1 Stakeholder Identification and List of Key Stakeholders .................................... 7-5 7.1.2 Information Provided to Stakeholders and the Mechanisms for Receiving

Feedback .............................................................................................................. 7-6 7.1.3 Needs Assessment and Community Needs Identification ................................... 7-7 7.1.4 Qualitative Assessment of Community Responses to the Proposed Project........ 7-8

7.2 General Project Consultations and Feedback.................................................................. 7-10 7.2.1 RAP Consultations............................................................................................. 7-10

7.3 RAP Disclosure............................................................................................................... 7-11 7.3.1 Information Gathering and Update for RAP Disclosure.................................... 7-11 7.3.2 Response to Disclosure ...................................................................................... 7-12

7.4 RAP Grievances and Dispute Resolution Prior and During Land and Asset Acquisition...................................................................................................................... 7-12

7.4.1 Description of the Existing System.................................................................... 7-12

Chapter 8 Monitoring and Evaluation ................................................................................8-1

8.1 Objectives ......................................................................................................................... 8-1 8.2 RAP Monitoring Framework ............................................................................................ 8-2

8.2.1 Reporting ............................................................................................................. 8-5 8.2.2 Staff and Monitoring............................................................................................ 8-5

8.3 Internal Performance Monitoring ..................................................................................... 8-6 8.3.1 Types of Information/Data Collected .................................................................. 8-6 8.3.2 Source of Information/Data Collection Methods................................................. 8-6 8.3.3 Responsibility for Data Collection, Analysis and Reporting............................... 8-7 8.3.4 Frequency/Audience of Reporting....................................................................... 8-7

8.4 Impact Monitoring ............................................................................................................ 8-8 8.4.1 Type of Information/Data Collected.................................................................... 8-8 8.4.2 Source of Information/Data Collection Methods................................................. 8-9 8.4.3 Responsibility for Data Collection, Analysis and Reporting............................... 8-9 8.4.4 Frequency/Audience of Reporting....................................................................... 8-9

8.5 External Monitoring.......................................................................................................... 8-9 8.6 Completion Audit ........................................................................................................... 8-10

Chapter 9 Resettlement Budget and Financing..................................................................9-1

Chapter 10 Schedule for RAP Implementation..................................................................10-1

10.1 Plan Preparation.............................................................................................................. 10-6 10.2 Consultation and Disclosure ........................................................................................... 10-6 10.3 Land Acquisition and Construction ................................................................................ 10-7 10.4 Monitoring and Evaluation ............................................................................................. 10-7 10.5 Community Development Programs............................................................................... 10-7

Table of Contents


Annexes Annex 1.1 Involuntary Resettlement Policy OP 4.12 Annex 2.1 Population Density Annex 2.2 A Sample of Co-ordinates Register Annex 4.1 Household Survey Annex 4.2 West Africa Gas Pipeline (WAGP) Community Survey Annex 5.1 A Sample of Compensation Rates for Structures/Natural Features Recommended by

OPTS Sub-Committee on Land Acquisition Annex 5.2 A Sample of Compensation Rates for Economic Crops and Trees Recommended by

OPTS Sub-Committee on Land Acquisition Annex 5.3 Compensation Rates for Natural Features/Land Recommended by OPTS Sub-Committee

on Land Acquisition Annex 5.4 Compensation Rates for Natural Features/Land: Siltation/Pollution/Loss of Use

Recommended by OPTS Sub-Committee on Land Acquisition Annex 5.5 Indicative Compensation Rates Obtained from Ogun State Property and Investment

Corporation (OPIC) Annex 6.1 Nigeria Estate Survey Variables and Sample Data Annex 7.1 Consultations

Table of Contents


List of Figures Figure 1.1-1 West African Gas Pipeline Project Route Figure 1.1-2 Pipeline Route in Relation to “Tee” and Compressor Station Figure 1.2-1: Number of Affected Land Segments by Community Figure 1.2-2: Average Area of Affected Land Segments by Community Figure 1.2-3: Total Area of Land Lost by Community (ha) Figure 2.3.1: Alagbado Site Location Figure 2.3-2: Compressor Station Configuration Figure 2.5-1: Pipeline Construction Corridor Figure 4.3-1: Nigeria Communities Map and Project Facilities Figure 4.4-1: Migratory Status Figure 4.4-2: West African Gas Pipeline Equipment/Material Delivery Route Figure 4.4-3: Land-Use Patterns in Surveyed Communities Figure 4.5-1: Employment in the Surveyed Communities (ages 14 and over) Figure 4.5-2: Employer Characteristics in the Surveyed Communities (ages 14 and over) Figure 4.5-3: Income Earners in Household Figure 4.5-4: Reported Sources of Household Income in Affected Communities Figure 4.5-5: Household Expense Comparison – Directly Affected Households and

Communities Figure 4.5-6: Reliance on Agriculture and Monthly Incomes* Figure 4.5-7: Relationship between Land Size and Household Incomes Figure 4.5-8: Household Asset Ownership (% of households) Figure 4.5-9: Average Area of Land Owned by Households in Affected Communities Figure 4.6-1: Home Ownership Status and Number of Rooms in Homes Figure 4.9-1: Loss of Land among Affected Landowners Figure 4.9- 2: Gender Distribution of Affected Landowners Figure 4.9-3: Age of Affected Tenants Figure 4.9-4: Age of Landowners Figure 5.3-1: Land Acquisition Process in Nigeria Figure 5.3-2: Land Acquisition Process in Nigeria (Phase 3B) Figure 5.3-3: Land Acquisition Process in Nigeria (Phase 3C) Figure 5.3-4: Land Acquisition Process in Nigeria Figure 5.3-5: Land Acquisition Process in Nigeria Figure 5.3-6: WAGP Dispute Resolution Process in Nigeria Figure 5.3-7: Post Acquisition Claims & Disputes Resolution Process in Nigeria Figure 5.5-1 WAPCo RAP Team Organization Chart Figure 6.1.1 Pipeline Route in Nigeria Figure 6.2-1 Number of Affected Owners by Community* Figure 6.2-2 Affected Tenants by Community* Figure 6.2-3 Gender Distribution of Tenants on Affected Plots* Figure 6.3-1 Trees Located in the Affected Areas* Figure 6.3-2 Sources of Household Income in Affected Communities Figure 7.4-1 Existing Grievance Process in Nigeria Figure 10.1-1 RAP Implementation Timeline

Table of Contents


List of Tables

Table 1.1-1: General Land Characteristics of the WAGP Project Area in Nigeria Table 1.2-1: WAGP Project-Affected Populations Table 1.2-2: Landowners and Other Claimants Table 1.2-3: Area and Number of Affected Segments Table 1.2-4: Characteristics of Affected Land Segments Table 2.7-1: Land Acquisition Requirement in Nigeria Table 4.4-1 List of Surveyed Communities Table 4.4-2: Population in Local Government Jurisdiction Areas Table 4.4-3: Ethnic Groups in the Surveyed Communities Table 4.4-4: Land Use Within Identified Land Parcels to be Acquired by WAPCo Table 4.4-5: Distribution of Energy Sources by Domestic Use in Surveyed Communities Table 4.5-1: Major Crops Raised by Households Table 4.5-2: Livestock Ownership Table 4.5-3: Fishing Methods Within Surveyed Communities Table 4.5-4: Sources of Annual Income in Affected Communities (USD) Table 4.5-5: Distribution of Annual Household Income in Surveyed Communities Table 4.5-6: Household Expenses in Affected Communities Table 4.6-1: Land and/or Water Ownership in Surveyed Communities Table 4.7-1: Trees Grown on Affected Lands Table 4.7-2: Crops Grown on Affected Lands Table 4.9-1: Gender of Landowners Table 4.9-2: Gender Distribution of Tenants on Affected Land Table 6.1-1: Area and Use of Affected Land in Project-Affected Area Table 6.1-2: Types of Assets Impacted in the Project Affected Areas Table 6.2-1: Age and Gender Characteristics of Land Owners (# of owners) Table 6.3-1: Potential Involuntary Resettlement Impacts of WAGP Project in Nigeria Table 6.3-2: Assets to be Restored After Pipeline Construction Table 6.3-3: WAGP Road Crossings in Nigeria Table 6.3-4: Affected Residential and Associated Structures by Community Table 6.3-5: Affected Cultural Assets by Community Table 6.3-6: Number of Trees Affected in by Community Table 6.3-7: Summary of Agricultural Land Use in the Project Affected Areas Table 6.3-8: Crops and Trees on the Project Affected Areas Table 6.3-9: Sources of Income of Affected Households Table 6.3-10: Commercial Structures in the Affected Communities Table 6.4-1: Entitlement and Compensation Matrix Table 7.1-1: Nigeria Key Stakeholders for Land Acquisition and Resettlement Table 7.2-1: Nigeria: Community Meetings Involving RAP Discussions Table 8.2-1: RAP Monitoring Framework Table 8.2-2: Internal Performance Monitoring Milestones Table 9.1-1: Budget for Compensation, Land Acquisition, and RAP Activities in Nigeria

(Planning, Construction and Operation Phases)

Acronyms and Abbreviations

June 2004 Nigeria Final Draft RAP Rev 1 AA-1


CDP Community Development Program CEB Communauté Eléctrique du Bénin CNL Chevron Nigeria Limited EA External Affairs EIA Environmental Impact Assessment ELP Escravos-Lagos Pipeline ESD Emergency Shut-Down ESIA Environmental and Social Impact Assessment FEED Front End Engineering Design FGN Federal Government of Nigeria FID Final Investment Decision FOS Federal Office of Statistics ft Feet ha Hectare HDD Horizontal Directional Drilling HGA Host Government Agreement HSE Health Safety and Environment IFC International Finance Corporation IFI International Finance Institution in Inch IPA International Project Agreement km Kilometer LGA Local Government Authorities LNG Liquid Natural Gas m2 Square Meter m Meter M&E Monitoring and Evaluation NGC Nigerian Gas Company NGO Non-Government Organization NISER Nigerian Institute of Social and Economic Research NNPC Nigerian National Petroleum Corporation OPL Oil Pipeline License OPTS Oil Producers Trade Section PAA Project Affected Area PAP Project Affected Populations PCD Public Consultation and Disclosure PDP Public Display Package PNA Participatory Needs Assessment PTS Permit to Survey R&M Regulating and Metering RAP Resettlement Action Plan ROW Right of Way SIA Social Impact Assessment SNGL Shell Nigeria Gas Limited


June 2004 Nigeria Final Draft RAP Rev 1 AA-2

SOBEGAZ Société Béninoise de Gaz S.A. SOTOGAZ Société Togolaise de Gaz S.A. SPDC Shell Petroleum Development Company VRA Volta River Authority VSAT/SCADA Very Small Aperture Terminal /Supervisory Control and Data Acquisition WAGP West African Gas Pipeline WAGPA West African Gas Pipeline Authority WAPCo West African Pipeline Company

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 i

Executive Summary

Introduction

The West African Gas Pipeline Company Ltd. (WAPCo)1 intends to construct a 688.6km onshore and offshore gas pipeline transmission system that will deliver natural gas from Nigeria to markets in Benin, Togo, and Ghana, known as the West Africa Gas Pipeline Project (WAGP).

The WAGP pipeline route will start from the Alagbado “Tee” near Itoki, to Lagos Beach Compressor Station and then continue south to the shoreline crossing at Badagry Beach. From the shore crossing in Nigeria, the main trunk of the offshore pipeline will terminate at the Takoradi Thermal Power Plant in Takoradi, Ghana. Gas delivery laterals from this main pipeline route will continue to regulating and metering (R&M) stations in Cotonou, Benin; Lomé, Togo and Tema, Ghana respectively.

The project will provide important environmental, socioeconomic and development benefits for Nigeria, as well as other participating countries (Benin, Togo, and Ghana). A more secure regional energy supply will be created for power generation or direct use for industrial and non-industrial consumers, including the poor. The construction of the pipeline and associated facilities would increase short-term employment opportunities in the surrounding areas. Lastly, the development of a new fuel source would lead to secondary economic development in the region and thus create new employment, healthcare, and education opportunities for affected communities at large.

Land acquisition and resettlement impacts

The WAGP project used the World Bank’s Impoverishment Risks and Reconstruction Model (IRRR) to identify degrees of potential impact on the population in Nigeria. These risks include (i) landlessness; (ii) homelessness; (iii)loss of access to common property resources; (iv) joblessness; (v) food insecurity: (vi) increased morbidity; (vii) community disarticulation; and (viii) marginalization. Overall, land acquisition and resettlement impacts of the project are modest and concern primarily to low levels of risks associated with landlessness and homelessness.

In Nigeria, the project requires the acquisition of less than 144 hectares. Because of the linear nature of the project, this small amount of land is spread among 23 communities of two western states of the country – Ogun and Lagos. They include Itoki, Ijoko, Alade, Owode, Ajibode, Ewupe, Atuwara, Abule Benja, Igbo Oloye, Arobieye, Abiola, Okoomi, Ore

1 WAPCo is a joint venture company formed to construct, maintain, and operate the pipeline. The company is a partnership between Chevron Nigeria Limited (CNL), Nigerian National Petroleum Corporation (NNPC), the Shell Petroleum Development Company (SPDC) of Nigeria Limited, Société Beninoise de Gaz S.A. (SOBEGAZ), Société Togolaise de Gaz S.A (SOTOGAZ), and the Volta River Authority (VRA).

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 ii

Akinde, Edu, Agbara, Igbesa (Agotutun), Ilogbo Ijobun, Ilogbo Eremi, Agunmo, Araromi Ale, Imeke, and Ajido.

A total of 1,557 private landowners and 928 tenants will lose a small portion of the total holdings they own and/or cultivate. The estimated number of people who live in the affected families of owners and tenants is 8,647. Owners lose less than 4-6 percent of their total land holdings. The income loses attributable to loss of land are less than 2 percent of total household income. About 143 residential plots are affected; on 37 of these there are fully constructed homes.

The land acquisition will be based upon a legal framework consistent with the International Project Agreement, Nigerian laws and regulations, as well as international standards outlined in the World Bank Group Operational Policy (OP) 4.12.

All affected immovable assets have been inventoried. Accordingly, about 2,578 registered land plots containing 10,212 segments with different land use characteristics (particularly regarding crops and trees) will be partially affected. A census containing the names, addresses and other characteristics of affected landowners and tenants has been prepared. Of the total 2,485 affected people all have been contacted both by the Estate Surveyors contracted by WAGP and responsible for the land and asset inventory as well as by independent surveyors that the affected populations have hired to represent them.

Land acquisition and resettlement strategy

The affected people were provided with two options: in-kind or cash compensation. The affected people opted for cash compensation for all assets. Consistent with the principles outlined in OP 4.12 and based upon the request of the affected people, the project will acquire land on a willing-buyer/willing-seller principle. Farmers will be compensated for both immovable assets and for the standing crops. At the request of the people, affected trees, wells, water tanks, fishponds as well as cultural assets such as family shrines and graves, the compensation will be made in cash. Offer was also made to help remove affected cultural assets. This constitutes the basic principle of the resettlement action plan (RAP).

In compliance with OP 4.12 and in order to minimize land acquisition and thus avoid physical and economic dislocation of the affected population, several measures were adopted: (a) the ROW and the site of the Compressor Station have been chosen among four different alternatives to impact only a few residential structures; (b) the ROW width has been kept to the minimum of 25 meters; (c) the construction of access roads to the pipeline has been avoided; (d) replacement land within the affected communities has been identified; (e) arrangements have been made to ensure that lands leased for temporary camps and storage facilities will be chosen from plots unsuitable for cultivation or returned to their original owners after proper restatement for cultivation; (f) construction plans limited the extent of clearing so as to retain as much productive land as possible; (g) provision has been made for allowing cultivation of crops up to the ROW border to limit permanent crop loss.

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 iii

Information and consultation for RAP preparation

The planning for resettlement has involved screening, scoping of key issues, and data collection through the Estate Survey and Valuation Assessment conducted in September 2003. The Estate Survey aimed at determining exact land demarcations, clarifying land access issues, and recording the pattern of ownership and use of all the 2,578 partially affected plots. Valuation and assessment of properties to be acquired by the WAGP project was based on inflation adjusted oil industry specific rates for the land (OPTS)2.

Information additional to the Estate Survey was obtained from the household and community surveys incorporated in the Environmental and Social Impact Assessment (ESIA) of the project. ESIA household survey was based on a sample of 510 households of which, 163 will either lose land to the project or live in close proximity to the pipeline and will thus be directly impacted. The socio-economic characteristics of this group of 163 households were analyzed to better understand the project impacts.

Censuses as well as other demographic and qualitative data were also used to prepare the RAP.

WAGP conducted broad consultations with the local communities and other key stakeholders to inform them of the project and to establish an adequate process of community participation and disclosure. These consultations as well as in-depth and focus group interviews held in the context of ESIA have further informed the RAP preparation.

Key characteristics of affected populations

The analyses of the Estate Survey showed that:

• The majority of the affected households are landowners;

• Female land owners constitute a smaller portion of the affected people, and lose less land than the men. Affected female owners lose an average of 433 sqm land to the project; the respective number for male owners is 921sqm;

• Age specific vulnerabilities are not visible. However, there are indications that the elderly are over-represented among the landowners in some communities;

• Most of the affected land is used for agricultural purposes and the affected

households have a high degree of reliance on agriculture;

• Both subsistence and commercial crops are grown on different segments of the affected plots;

2 OPTS –Oil ProducersTrade Section.

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 iv

• Although no forest or pasture lands are to be affected, households will lose a considerable number of hardwood and softwood trees used for agricultural, commercial and medicinal purposes;

• Only a few residential plots are affected; most of buildings on land are in the process of construction;

• Water resources such as fishponds and streams are found in few of the affected plots. After construction, the hydrological regimes will be restored to pre-construction conditions to avoid adverse impacts; and

• All affected households prefer cash compensation, despite being offered in-kind compensation based on land-for-land arrangements;

The analyses of the ESIA socio-economic surveys showed that:

• A large proportion of the directly affected households are rural, and the majority of them have been living in the same community since they were born;

• Agriculture is the most important income generating activity for both the

communities in general and for the directly affected households. About 72 percent of the directly affected households engage in subsistence agriculture while 43 percent grow commercial crops. Most households define themselves as self-employed agricultural workers, and indicate that they are highly dependent on access to land;

• Livestock management is not widespread among the directly affected households,

although a significant portion of them keep poultry and sheep;

• There is no significant difference between the directly affected households and other members of their communities in terms of ethnic origin. Similar procedures for land acquisition will apply across all ethnic groups;

• Education and literacy rates are high among the population in the affected areas, thus

facilitating the dissemination of information regarding the project;

• Directly affected households are more likely than others to be reliant on the income-earning abilities of only one or, at the most, two household members. Other households in affected communities tend to have more than two people earning incomes. Thus, temporary work opportunities offered by the project may appeal to the directly affected households;

• The reported income levels are low, but despite this affected households have good

access to basic infrastructure and consumer items;

• There is no significant difference between the directly affected households and others with regard to ownership of household and transport assets. Therefore, if the directly

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 v

affected households opt to obtain land elsewhere, or relocate their homes, they will not be disadvantaged in comparison with other members of their communities; and

• Households in surveyed communities view the project in a positive light, mainly due

to its expected employment impact as well as benefits to be accrued during the operation of the pipeline.

Determination of entitlements and compensation levels

According to the Entitlement and Compensation Framework prepared for the WAGP project in Nigeria, compensation will be provided to two categories of the affected population: (a) the landowners, including the absentees; and (b) the tenants. For the loss of land, crops, and structures WAGP will provide cash compensation based on a willing-buyer/willing-seller model. All land acquired and assets impacted as a result of the WAGP project will be compensated through a negotiated agreement.

According to the OP 4.1.2 cash compensation for lost assets is appropriate where (i) the acquired land is a small fraction of the affected land and thus the residual remains economically viable; (ii) active markets for land and housing; and (iii) livelihoods are not land-based and thus the impact is indirect. These conditions for payment of cash compensation are largely met in Nigeria. There appears to be an active land and housing market in and around the affected communities exist. Despite reliance of households on agriculture, only a small fraction of family holdings and incomes are affected by the project.

The negotiations for compensation for land were based on the 1998 OPTS3 rates established by the Government for the oil sector. These rates are multiplied by 10 and then further increased by 50-75 percent to reflect inflation adjustment and restoration of lost incomes. Affected crops and trees, as well as structures will receive 50-75 percent over the1998 OPTS rates. The entitlements for tenants are limited to affected crops and trees. Tenants will also receive 50-75 percent over the 1998 OPTS rates for standing crops. Both tenants and landowners will pay all transaction costs, including the fees for the estate surveyors who represent them, out of the lump-sum compensation payments they will receive from WAGP.

WAGP held broad consultations with local communities and other key stakeholders such as community leaders and public officials to ensure that the entitlements and the compensation levels established are accurate and appropriate. The land plots identified by Estate Surveyors for acquisition were publicly announced and displayed to verify entitlements. Negotiations for compensation were held with several estate agents that people chose to represent them. Choices for in-kind versus cash compensation were also presented through these agents to all affected parties.

3 OPTS – Oil Producers Trade Section

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June 2004 Nigeria Final Draft RAP Rev 1 vi

RAP implementation arrangements and organizational responsibilities

Responsibilities for the commitments proposed in the RAP reside within WAPCo and are delegated internally and to qualified contractors such as Estate Surveyors. A well defined organizational structure exist with all units and staff assigned to specific roles associated with the process of RAP impact minimization, census and inventory preparation and confirmation, consultation and feedback, compensation negotiations, land acquisition and registration, as well as monitoring and reporting.

Various departments of WAPCo are involved in the implementation of resettlement activities, under the overall guidance of the office of the Project Director who reports directly to the WAPCo Managing Director. A special unit referred as the RAP Management Team works with the Project Director to ensure RAP implementation as well as to carry out the internal monitoring. Within the Team, the core responsibilities of the RAP work rests with the Community Relations staff. They responsibilities of the individual departments include the following and are spread over the RAP process beginning with the identification of alternatives routes/sites to resolution of disputes:

• External Affairs (EA) is currently responsible for facilitating liaison with communities as well as government agencies to facilitate stakeholder consultations throughout the life of the project. Following FID the Government Relations reps will report to WAPCo General Manager, Corporate Affairs, with Community Relations maintaining it’s reporting relationship to the Project Director

• Health, Safety and Environment submits Estate Survey and socioeconomic surveys as part of the EIA and RAP approval process, including public notification and public hearings;

• Engineering identifies alternative project sites and pipeline routes, contracts and supervises Estate surveyors, works with landowners and tenants on verifying their titles and conducts negotiations on compensation payments;

• Legal provides advice to the WAPCo team, including verification of power of attorney and drafting of legal agreements with affected parties; and

• Accounting processes payments to the affected people.

In addition, a number of the central and federal government agencies have legal responsibilities in the implementation of the RAP. They include State Ministry of Lands and Housing, Bureau for Lands and Survey, Office of State Surveyor General, Town Planning Division, Forestry Research Institute of Nigeria, Department of Petroleum Resources, State Ministry of Tourism/Tourism Board, as well as local government councils and traditional leadership.

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June 2004 Nigeria Final Draft RAP Rev 1 vii

RAP Monitoring

Both internal and independent external monitoring and evaluation arrangements, including impact studies have been designed and fully funded. For external monitoring purposes an independent Expert Panel will be created. This Panel will also review RAP performance in other countries falling under the project.

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June 2004 Nigeria Final Draft RAP Rev 1 viii

Entitlement and Compensation Matrix4

Project affected people

Type of Loss Asset Replacement Income Stream Restoration Other Entitlements and Notes

Property Owners

Loss of land Provision of land nearby with similar characteristics;

OR

Cash compensation for land (valued according to 10 times the OPTS rates plus 50-75 percent) and agreed upon based on willing-seller/willing-buyer arrangements.

Land will be prepared for cultivation or the negotiated compensation is assumed to include cost of land preparation to allow them do the work;

Standing trees will be compensated in cash;

All other immovable assets on affected land (such as barns) will be compensated in cash unless affected households ask for assistance in re-constructing or otherwise replacing these assets;

Expected income stream from the affected asset is assumed to be included in the negotiated compensation to the owner.

Affected people that prefer cash compensation will be informed that cash compensation fully covers all expenses of replacement land whether or not they actually chose to buy such land.

If cash compensation option is selected, the lump-sum payment will include all relevant taxes, fees, transaction costs; these will not be paid out separately;

If replacement land offered in the vicinity of the lost land is not acceptable to the affected households cash will be offered based on willing-buyer/willing-seller arrangements;

Farmers will be provided with the top soil taken from the 25 meter pipeline corridor;

The corridor will not be fenced. People will be free to use the corridor to access different parts of their farm and/or their work (school, or other social facilities);

The corridor will be leveled and be put into the pre-project conditions to allow passenger and light farm machinery or light transport;

Compensation will be paid directly to the affected people.

4 The summary of entitlements provided in this matrix is expanded in Chapter 6.

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 ix




Loss of residential structures (completed)

Cash compensation at 50-75 percent above OPTS rates from 1998;

OR

Provision of similar structure located elsewhere.

Income stream from attached garden / yard will be provided, based on crop valuations;

Affected people that prefer cash compensation will be informed that cash compensation fully covers all expenses of replacement structure whether or not they actually chose to buy such structure.

If cash compensation option is selected, the lump-sum payment will include all transaction costs; these will not be paid out separately;

Compensation will be paid to affected people directly.

Loss of fish ponds

No significant impact is expected. The pipeline will pass through the ponds or under streams.

Income streams may be affected only in accidental situations.

Contractors’ contracts will include a clause for case-by-case evaluation for lost income stream and compensation (especially in the Badagry Creek area).

Loss of trees Cash compensation for the timber value of lost trees;

OR

Should the landowners desire, seeds and seedling will be provided instead of cash.

Loss income stream from trees is included in the negotiated compensation.

If cash compensation option is selected, the lump-sum payment will include all transaction costs;

Compensation will be paid directly to the affected people.

Tenants Loss of access to land and associated income and livelihood generating opportunities

Not applicable, unless they have installed wells, hand pumps, informal irrigation schemes, sheds, etc on the land as per agreement with owners.

Assistance in finding replacement land of like kind and in leasing this land;

OR

One-time cash payment for standing crops and for any assets they have claims for.

If cash compensation option is selected, the lump-sum payment will include all relevant transaction costs.

Executive Summary

June 2004 Nigeria Final Draft RAP Rev 1 x




Loss of standing crops present on land at time of WAGP land acquisition

Cash compensation. Not applicable If cash compensation option is selected, the lump-sum payment will include all transaction costs;

Compensation will be paid directly to the tenants.

Local community at large

Loss of communal lands and royal / traditional lands

Provision of land nearby with similar characteristics;

OR

Cash compensation.

Not applicable Cash compensation options will be discussed with the local government councils (village chiefs.)

Loss of shrines, graves and other cultural assets

Pipeline re-routing;

OR

Moving the shrines to a new location, acceptable to communities;

OR

Cash compensation.

Not applicable Payment will be made for the loss of use of land, and shrines will be relocated at the new place, purchased by WAPCo and acceptable to the households / community affected;

If the affected households / community opts to receive cash compensation instead of removal and restatement, case-by-case compensation arrangements will be made.

.

Chapter 1

June 2004 Nigeria Final Draft RAP Rev 1 1-1

Chapter 1 Introduction

This Resettlement Action Plan (RAP) describes the framework and procedures that the project proponent will follow in the acquisition of and compensation for land and assets, both permanent and temporary, in the Nigerian portion of the West African Gas Pipeline Project (WAGP). The RAP describes the Project’s land acquisition and compensation principles as well as procedures and progress made through May 2004.

1.1 Brief Description of Project The West African Gas Pipeline Company Ltd. (WAPCo) intends to construct a 688.6 km (428 mile) gas pipeline transmission system, onshore and offshore from Nigeria to Ghana. The pipeline will deliver natural gas from Nigeria to markets in Benin, Ghana, and Togo.

WAPCo is a joint venture company formed to construct, maintain, and operate the pipeline. The company is a partnership among Chevron Nigeria Limited (CNL), Nigerian National Petroleum Corporation (NNPC), The Shell Petroleum Development Company (SPDC) of Nigeria Limited, Société Beninoise de Gaz S.A. (SOBEGAZ), Société Togolaise de Gaz S.A (SOTOGAZ), and the Volta River Authority (VRA). The partnership of these companies was formerly known as the “Joint Venture” or the “Commercial Group.”

The proposed pipeline route is shown below in Figure 1.1-1. The pipeline will start in Nigeria from a connection at an existing Escravos-Lagos Pipeline (ELP) junction at the Alagbado “Tee” near Itoki to a beachhead in Ajido, near Badagry.1 Lateral connections will extend from the offshore trunk to intermediate locations in Benin, Ghana, and Togo.

From the “Tee,” the pipeline route would proceed 56km south to Lagos Beach Compressor Station, and continues an additional 2km south to the shoreline crossing at Badagry Beach. Thus, the total length of the pipeline would be 58km. The first 4km of the onshore pipeline route will parallel existing Rights of Way (ROW) belonging to NGC and Shell Nigeria Gas. The next 32km, the WAGP ROW will run adjacent to the Shell Nigeria Gas pipeline ROW. From there to the Lagos Beach Compressor Station, a distance of about 18km; and from there 2km to the shoreline downstream of the Compressor Station after crossing Badagry Creek, the pipeline will be constructed on land previously unoccupied by or adjacent to any pipeline ROW.

1 The ELP is owned by Nigerian National Petroleum Corporation (NNPC) and operated by the Nigerian

Gas Company (NGC), a subsidiary of NNPC.

Chapter 1


Figure 1.1-1 West African Gas Pipeline Project Route

Chapter 1


Figure 1.1-2 Pipeline Route in Relation to “Tee” and Compressor Station

Compressor Station Location

Alagbado Tee

ProposedPipeline Route

Proposed Locationof Isolation Valve

0 2.5 5 7.5 10Kilometers

±

Chapter 1


The Lagos Beach Compressor Station will be built to boost gas pressure for transmission offshore. Gas compression will initially occur only in Nigeria but provisions are being made in the design of the transmission system for expansion of compression capability in the future through the possible installation of midline compression facilities at Lomé, Togo as well as additional compressors at the Lagos Beach Compressor Station. Should requirements necessitate extending the pipeline past Takoradi, Ghana, compression facilities can be installed later at Takoradi. While the initial design calls for the Lagos Compression Station, a temporary bypass pipeline will be installed around the Compressor Station to expedite initial gas deliveries to customers while the construction of the permanent station bypass and compressor station is completed. This will allow a minimal flow of gas to downstream customers. Based on anticipated delivery rates and pressures from the upstream ELP system, delivery rates in the range of 30 to 60 million standard cubic feet per day (MMscfd) will be possible without compression. Initial pipeline capacity with compression at Lagos Beach will be 190MMscfd.

From the Lagos Beach Compressor Station, the gas will be transmitted through a 20in (50.8cm) pipeline offshore, a distance of approximately 15km. There the route will turn west and extend through the territorial waters of Nigeria, Benin, Togo, and Ghana, terminating at Takoradi, Ghana. The general land and residential characteristics of the project area in Nigeria are provided in Table 1.1-1. The main trunk of the offshore pipeline will be placed on the seafloor at an approximate distance of 16 to 26km from shore. At three locations, connections will be made from the main offshore trunk to laterals ranging in diameter from 8 to 18 inches (20-46cm), which will transmit gas to delivery points at Cotonou, Lomé, and Tema. In Cotonou, the onshore part of the lateral will extend a distance of approximately 5km to the regulating and metering (R&M) station. WAPCo will also construct a link line from this R&M station to a foundation power-generation customer located 9.5km to the northeast. In Lomé, the onshore pipeline approach consists of approximately 0.20km to the R&M/future midline compressor station and another 0.8km link line extension to deliver gas directly to local power plants. In Tema, the lateral will extend onshore only 0.52km to an R&M station. In Takoradi, the onshore length of the main trunk is 0.90km.

As summarized in Table 1.1-1, the project’s land acquisition and resettlement impacts in Nigeria are modest. A total of 144 hectares of land will be acquired, affecting 1,557 owners and 928 tenants. All owners, resident and absentee, have been identified and informed. Of the 143 residential structures affected, many are under construction, with only 37 completed and most of the remaining with foundations laid. There are 1,557 households owning at least one parcel of land that will be either entirely, or more often partially, acquired by the project. In this RAP the term “plot” is referred only to the land to be acquired by the project.

Chapter 1


Table 1.1-1: General Land Characteristics of the WAGP Project Area in Nigeria Length/ROW Width of Pipeline Onshore 58km-long and 25m-wide corridor Area of Permanent Compressor Station2 8.5 ha Alagbado Tee 0.31 ha Total Land Affected by the 25-meter Corridor 1353 ha Number of Affected Plots and Land Segments4 2,578 plots/ 10,212 segments5 Number of Communities Affected 23

Number of Affected Districts/States 4 local government areas (LGA), 2 in each state/2 states Number of Affected Households (including private landowners and tenants)

Private owners: 1,557 Tenants: 928

Residential Structures 143 Affected Forest None Affected Pastures None Affected Croplands 133.3 ha Fishing Streams Affected 0.8 ha New Access Roads Constructed None

Other Facilities Midline block valve stations: 1

Pipe yards (temporary): 2 Construction camps (tentative): 1

Over 90 percent of the affected landowners will lose only one plot and 7 percent will lose two plots to the project. Each owner of a plot or plots to be acquired has an average of 4 segments of land with different crop characteristics.6 Therefore, there are 10, 212 segments within plots to be acquired by the project

2 The land for the proposed site for the Compressor Station belongs exclusively to one family with several

brothers. 3 Although a 58km by 25m corridor indicates 140 hectares, in certain segments the corridor will be

narrower; thus the total area affected by the corridor will be even smaller. The Estate Survey data covers both the corridor and the other facilities and indicates that a total of 143.7 hectares of land will be acquired.

4 The Estate Survey and Valuation Assessment provides information only on the plots that will be acquired by the project rather than on the total land holdings of affected families, a portion of which will be acquired by the project. The 2,578 plots are actually portions of family holdings. The segments within plots represent different land uses, recorded by Estate Surveyors to assist in evaluating the plots.

5 Since the distinction is among the different uses of land, the number of land segments affected is far greater than the number of unique owners and users (tenants) of land. The total of land segments also includes 17 that were under a dispute at the time of the Estate Survey. However, the WAGP indicated that these disputes have been resolved since then.

6 For instance, one plot may be divided into 4 different segments, each accommodating a different type of asset such as a house, timber trees, fruit trees, and a fish pond. Also, of these 4 segments, one may be cultivated by someone else, referred to as a ‘tenant’ for purposes of data.

Chapter 1


1.1.1 Value of the Project

The capital investment of the WAGP project is estimated at US$500 million. The total cost of the pipeline construction in Nigeria alone is estimated to be US$117.8 million. It is projected that an additional US$600 million would be invested in secondary development of new power generation facilities or upgrades of existing facilities in Benin, Ghana, and Togo (Energy Information Administration, 2003). A number of potential benefits resulting from the proposed WAGP project have been identified; and the environmental, social, and economic benefits are summarized below.

1.1.1.1 Environmental Benefits

The WAGP project would improve the regional environment by meeting energy needs with cleaner-burning natural gas instead of less desirable fuels, thereby reducing the amount of air pollution produced, particularly greenhouse gas emissions. Compared to the average air emissions from oil-fired generation, natural gas produces 20 percent less carbon dioxide, less than one percent as much sulfur oxides, and less than half as much nitrogen oxides. Even more significant, the collection of natural gas for end-use would reduce pollution associated with open-flare gas burning now ongoing in Nigeria. The use of currently wasted natural gas as an energy source will reduce greenhouse gas emissions, resulting in global climate change benefits. WAPCo has conducted a separate greenhouse gas analysis to quantify the carbon dioxide reduction benefits of the proposed project.

1.1.1.2 Social Benefits

The WAGP project would provide a more secure regional energy supply via power generation or direct use for industrial and other institutional consumers. Households, including those who are poor, will also benefit from enhanced electrical energy availability. The project would also accelerate regional integration and enable sustainable development. The construction of the pipeline and infrastructure would increase short-term employment opportunities in the surrounding areas. Lastly, the development of a new fuel source would lead to secondary economic development in the region and thus create new employment, healthcare, and education opportunities for affected communities.

1.1.1.3 Economic Benefits

Energy is a vital component of economic growth. The WAGP project would provide a lower-cost, sustainable fuel (and electricity-generation) solution for Benin, Ghana, and Togo. The produced gas would provide fuel for both existing and planned independent power plants, and for industrial and commercial consumers. WAGP would also create a new tax and tariff revenue stream, which would increase tax receipts in all the countries. In addition, the WAGP project would provide infrastructure that would act as a trigger for stimulating direct foreign investment in new and existing West African industries, as well as providing trade opportunities. The provision of a market and a financial return for natural gas currently being wasted will provide an infusion of funds into Nigeria, resulting in positive economic benefits in that country.

Chapter 1


1.1.1.4 Project Proponent

The project developer and project proponent for the WAGP Project is the West African Gas Pipeline Company Ltd., or WAPCo. WAPCo is a separate, stand-alone business entity formed by the consortium of companies known originally as “the commercial group.” Shares in the company are distributed among its partners – CNL, NNPC, SPDC, VRA, SOBEGAZ, and SOTOGAZ7.WAPCo, through formal project management and construction management agreements, is responsible for the overall monitoring of land acquisition and resettlement.

1.2 Project-Affected Peoples and Areas The WAGP pipeline runs through the Lagos and Ogun states, bisecting 23 communities. Building the pipeline will require acquisition of 144 ha of land necessary for the Right-of-Way (ROW), Compressor Station and other associated facilities. Because the land taken in a given area along the pipeline route involves only a narrow 25 meter-wide strip, the project affects relatively few households in most localities.

As planned, the 58 kilometers of pipeline and associated facilities onshore pass through 23 communities and involve over 10,212 land use segments (Table 1.2-1). Fourteen of the 23 affected communities have a combined total population of about 58,000 people. Information on the total population of the remaining nine communities is not available, but it can be assumed that a total of about 90,000 live in all 23 communities. This group is referred to as the project-affected population. By contrast, the directly affected population includes only those households whose plots are going to be acquired for the project. Table 1.2-1 shows 2,485 households of landowners and tenants have approximately 8,647 persons living in them8. They comprise 9 percent of the affected communities. An average affected household will lose 4-6 percent of its total land holding. In other words, including the tenants, a modest number of people in the relevant communities will be affected through the land acquisition activities; and the average impacts on affected households are modest.

7 The shares in the company are distributed among CNL(36.7 percent), NNPC (25 percent), SPDC (18

percent), VRA(16.3 percent), SOBEGAZ (percent)and SOTOGAZ (2 percent) 8 According to the ESIA, the average household size in the affected area is 3.48.

Chapter 1


Table 1.2-1: WAGP Project-Affected Populations9

Community Population-

2003

# of Affected Land

Segments # of Affected Landowners

Population of Affected

Landowner Households10

Percent of Affected

Owners11 in each

Community12

Ajibode 604 74 9 31 5.1 Ajido13 4,846 220 40 139 2.9 Alade 3,910 156 26 91 2.3 Araromi Ale 1,961 149 26 91 4.6 Arobieye 161 179 23 80 49.7 Ewupe 465 169 15 53 11.4 Igbesa 17,905 4,857 874 3,042 17.0 Ijako 11,285 39 5 17 0.2 Ilogbo Eremi 5,381 369 26 8 0.1 Imeke/Agemowo 3,424 252 36 126 3.7 Itoki 420 253 65 227 54.0 Itori 6,188 210 22 77 1.2 Oloya/Abiola 293 370 4 14 4.8 Owode 708 73 17 60 8.5 Remaining 9 Communities

N/A14 2,842 369 1,284 N/A

Total for 14 Communities

57,956 7,370 1,188 4,134 9.2

Total for All Communities

90,000 10,212 1,557 5,342 N/A

There are 2,485 potential claimants (Table 1.2-2) for the directly affected individual land plots; 63 percent of the claimants are landowners while the rest tenants.

9 The table does not contain information on all 23 affected communities since population figures were not available for

some communities. 10 According to the project ESIA, the average household size is surprisingly low: 3.48. Thus, an estimate of the

directly affected number of people is made by multiplying the individual owners by the average household size. 11 Numbers refer to landowning household populations only. 12 Calculated using 2003 population data. 13 The total number of segments in Ajido includes those located in the Lagos Beach Compressor Station site. . 14 National Census data is not available.

Chapter 1


Table 1.2-2: Landowners and Other Claimants

# of Households With a Compensation Claim

Of Which Total Numberof Tenants

Ajibode 11 2 Ajido 52 12 Alade 33 7 Araromi Ale 54 28 Arobieye 33 10 Egushi Benja 31 7 Etere 14 12 Ewupe 36 21 Idagha Iyeshi 36 22 Igangbo Igbereb 29 18 Igbesa 1,160 286 Igboloye 149 98 Ijako 6 1 Ijaliye 15 10 Ijoko 176 18 Ilogbo Eremi 89 63 Imeke/Agemowo 56 20 Isorosi 10 5 Itoki 88 23 Itori 44 22 Okoomi 237 138 Oloya/Abiola 102 98 Owode 24 7 Total 2,485 928

Source: Nigeria Estate Survey. 2003.

The Estate Survey shows that out of 144 hectares of land that will be acquired in Nigeria, the largest number of affected land segments and the largest land area affected between the ROW and compressor station is in Igbesa. The largest average land loss per segment is in the Oloya/Abiyola Community (Figures 1.2-1 and 1.2-2).

Examination of the information available for a select number of directly affected communities shows that the pipeline impacts a varying proportion of community residents as it passes through relatively densely populated urban and rural areas. Table 1.2-1 also shows relatively modest population increases for most affected areas, except Igbesa, Ijako, and Itori. An estimate of the number of people that will be affected by the project shows that outside of two areas, a small portion of the community residents will be affected. For instance, about half the population in Arobieye and Itoki are likely to be affected by the project because someone in their family owns land, a plot of which will be acquired by the project.

Chapter 1


In Igbesa Community, the average size of lost land segments is only 274 m2 (the smallest average) although a much higher number of land use segments is lost. In other words, in some areas each plot contains many different land segments (with different characteristics) while in other areas most plots may be under one crop or left fallow.

The Estate Survey data shows that many families have several land segments with different characteristics that will be acquired by the project. Thus, the number of land segments affected is far greater than the number of owners. The number of plots given here represents individually owned land parcels to be acquired for the project. Within the plots are land segments with different types of crops or structures on them.

The status of tenants and the conditions of tenancy are somewhat unclear, but whether an owner or a tenant cultivator, each individual with a claim on a plot has been carefully recorded.15 Given the small number of disputed land segments, the communities clearly identify entitlements of both owners and cultivators, whether or not they own a plot. Some ‘tenants’ may indeed have lease arrangements with owners while most appear to be family members.16 Nevertheless, the claims of each household for the standing crops or other assets are recognized, as are the ownership rights. Table 1.2-2 shows that 2,485 households have claims against the land permanently needed for the project. Of these, most (1,557) are owners/cultivators, and 928 are cultivators with no ownership claims. Given the small amount of land needed for the project, the high number of claimants together with over 10,000 land segments to be separately assessed and compensated creates a significant challenge for the project land acquisition team. Nevertheless, the work has been completed, and agreements can be completed for willing-buyer/willing-seller arrangements once the Final Investment Decision (FID) is declared (Chapter 5).

Table 1.2-3 and Figure 1.2-1 indicate the area and number of the land segments to be acquired in each community. The highest level of acquisition will occur in Igbesa where about 26 hectares of land in over 4,000 segments will be lost to the project. In general, the level of loss per community is extremely small, ranging between 1.4 and 14 hectares. In each community, however, plots to be acquired consist of many segments, owned and/or cultivated by many different families. An average household losing land to the project will be deprived of a small land area of 700 square meters, but owns about 1.7 hectares (Chapter 4).

The Estate Survey indicates that the large majority of affected plots are owned privately. In some cases, a family is identified as the owner although the name of the person cultivating the land is indicated to allow the identification of direct livelihood impacts. In fewer cases, the affected plots belong either to communities or to clans/lineages.

15 On agricultural land, the African traditions of communal holdings prevail so that many people are their

‘brother’s keeper.’ Many urban settlers have land and they allow their neighbors in the village to farm without charging rental. This helps avoid encroachment by strangers. Some owners charge rent. The payments range from 6,000 Naira (or $45) per annum to 5 percent of the produce. Some tenants cultivate and tender a portion of the land for the owner.

16 The Estate Survey recorded every claim in detail for each segment of each plot. From the review of owner and claimant names on each of the 10,212 segments, it is clear that while a member of the family is the owner, other members are cultivators.

Chapter 1


Table 1.2-3: Area and Number of Affected Segments

Village or Community Total Area of Land to beAcquired for the Project

(ha)

Number of Affected Land Segments17

Idagha Iyeshi 2.410 83 Ajibode 1.845 74 Ajido 5.420 219 Alade 4.020 156 Araromi 6.117 148 Arobieye 3.762 179 Egushi Benja 4.571 151 Etere Community 1.125 58 Ewupe 4.933 169 Igangbo Igbereb 2.660 156 Igbesa 26.493 4,847 Igboloye 6.523 667 Ijako 1.388 39 Ijaliye 2.965 61 Ijoko 9.252 605 Ilogbo Eremi 13.457 369 Imeke/Agemowo 12.251 252 Isorosi 0.748 65 Itoki 3.510 253 Itori 3.204 210 Okoomi 12.736 990 Oloya/Abiola 4.533 370 Owode 2.145 73 Total 143.727 10,194

Source: Nigeria Estate Survey, 2003.

17 The total number of land segments is 10,212. Slightly different numbers may appear on the text and the tables

because of missing numbers for some variables

Chapter 1


Figure 1.2-1: Number of Affected Land Segments by Community18

0 1000 2000 3000 4000 5000

Araromi Ale

Egushi Benja

Alade

Igangbo Igbereb

Ewupe

Arobieye

Itori

Ajido

Imeke/Agemowo

Itoki

Ilogbo Eremi

Oloya/Abiola

Ijoko

Igboloye

Okoomi

Igbesa

number of affected land plots

com

mun

ity


Figure 1.2-2 illustrates that the highest average land loss occurs in Oloya/Abiola, even though the total area of land lost is not very high.

Table 1.2-4 illustrates the characteristics of the affected land segments. Most of the affected land is used for agricultural purposes, although a total of 85 affected land segments contain cultural assets such as churches and shrines, and 143 plots include residential structures,19 some of which had been completed and others of which were still in the process of construction at the time of the Estate Survey in late 2003. Figure 1.2-3 illustrates the total area of land lost in each community.

18 Communities with fewer than 100 affected land segments are not included in this graph. 19 During the time of the Estate Survey, a cut-off point had not been established. This was done in March

2004, in accordance with the legal framework described in Chapter 3 and procedures outlined in Chapter 5. While some residential structures incomplete in 2003 could have been completed during the period between the completion of the Estate Survey and the declaration of the cut-off point, ongoing negotiations show that this has not been done. Nevertheless, if at the time of the final negotiations some homes appear to be more complete and/or contain additional immovable assets, compensation will be provided to cover these additions. This is reflected in the budget set aside for land acquisition and resettlement.

Chapter 1


Figure 1.2-2: Average Area of Affected Land Segments by Community

0 2,000 4,000 6,000 8,000 10,000 12,000

Igboloye

Alade

Ajibode

Arobieye

Isorosi

Araromi Ale

Igangbo Igbereb

Ajido

Imeke/Agemowo

Ijaliye

Ewupe

Ijako

Ilogbo Eremi

Etere

Oloya/Abiola

com

mun

ities

size of lost land (square meters)


Chapter 1


Table 1.2-4: Characteristics of Affected Land Segments

Affected Assets Number of Affected Plots Trees

Fruit Trees 3,528 Timber Trees 917

Crops Staple Food Crops 2,988 Commercial Crops 1,410

Timber Trees 917 Nut Trees/Bushes 789

Community Land 128 Water-Related Infra-Structures 74 Blockwork Structures 73 General Agriculture 23 Fences 24 Agricultural Structures 22 Commercial Structures 7 Hospital/Not Constructed 1 Cultural Assets 85

Churches 6 Graves 16

Praying Grounds 3 Shrines 60

Residential Buildings 143 Fully Completed Residential Buildings 37 Incomplete Residential Buildings With

Foundation 63 Partially Completed Residential

Buildings 43


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Figure 1.2-3: Total Area of Land Lost by Community (ha)20

0 5 10 15 20 25 30

Itori

Itoki

Arobieye

Alade

Oloya/Abiola

Egushi Benja

Ewupe

Ajido

Araromi

Igboloye

Ijoko

Imeke/Agemowo

Okoomi

Ilogbo Eremi

Igbesa

total size of affected plots (ha)

com

mun

ities


1.3 Resettlement Implementing Agencies There are a number of Federal Government Ministries, departments, and agencies with responsibilities for land acquisition. These include the State Ministry of Land and Housing, Bureau for Lands and Survey, Office of State Surveyor General, Town Planning Division, Forestry Research Institute of Nigeria, Department of Petroleum Resources, State Ministry of Tourism/Tourism Board, and local government councils.

Consultations with the Ministry of Land and Housing are essential to avoid conflict of interests for land development purposes.21 The Bureau for Lands ensures that land use and land development plans are carried out strictly with the intent authorized by the Government. The Bureau approves the construction of the corridor and participates in the identification of appropriate land as well as in the allocation and acquisition process. Indeed, this agency issues the Certificate of Occupancy that the project would need in order to proceed with construction.

20 Only those communities in which more than 3 ha of land are lost are included in this figure. 21 The consultations with federal ministries and agencies are essential. Needless to say, consultation

requirements make the process of land acquisition lengthy. Thus, early preparation of land acquisition activities and the launching of the consultation process were given priority by the project.

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The State Surveyor General is the authority who issues permits for initial survey works. The Department of Petroleum Resources (DPR) enables payments for the affected people without contravening the provisions of the Land Use Act that vests the administration of the urban land in the hands of the Governor and of the rural land in the hands of the Local Government Councils. The special regulations of the oil and gas sector create a device called the “Payment for Deprivation of Use of Land” and allow the regulation of sector access to land through the OPTS rates22 (Oil Producers Trade Section). As such, the DPR is a crucial federal authority to facilitate the land acquisition process and local governments are strategic as they are the government apparatus closest to the communities.

The Town Planning division ensures that the land acquisition process does not derail the established city/town plans. The Forestry Research Institute ensures that forest reserves are intact and not destroyed in the process of land acquisition for development projects. Similarly, Tourism Boards ensure that development projects and programs do not destroy established tourist attractions and cultural heritage sites.

To the extent that land acquisition commonly relates to communities, the role of the Federal Government is relatively limited, with low impacts on the process, other than DPR’s role described above. Nevertheless, past experience points to a relatively harmonious liaison among all levels of government with respect to large-scale investments that require land acquisition across local governments and states. The local government councils, as is the case with Ogun and Lagos states for the WAGP project, are the key authorities for administration of rural land through the Land Use Act. Traditional authorities also assume an important part in the identification of landowners and, equally important, in the resolution of ownership and entitlement disputes. For instance, the traditional Authority in Ogun State, the most prominent being the Olota of Otta, plays an important role in providing community leadership for assistance in identifying landowners as well as in the resolution of disputes.

In Ogun State, the Bureau for Lands and Survey, Abeokuta is the main government agency responsible for public land matters. In Lagos State, the State Ministry of Lands and Housing, Alausa, is the main agency responsible. These agencies maintain records of landownership in the respective states and provide Estate Survey information to determine ownership as well as valuation. In both states, the Local Government Council is vested though the Land Use Act with the responsibility of the administration of rural land.

The Bureau of Lands and Survey has the following process requirements prior to granting a Certificate of Occupancy:

• Proposed project submits formal letter to the Bureau informing it of intention to acquire the right of way (ROW). A detailed survey map is included with the request.

• The Bureau arranges for a joint inspection visit to the proposed land.

22 These rates have been established in 1998 and are low. When OPTS rates were used by Shell Nigeria

Gas, the communities were unhappy and conveyed this to WAGP. Therefore, WAGP will use these rates only as a starting basis for negotiations and will do so after adjusting them for inflation. The land acquisition team has been instructed to ensure that people are allowed to receive compensation that would be equivalent to full replacement rates.

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• Following the joint visit, publication of the intention to assume the ROW is made via newspapers for members of the public to raise concerns. A notification period lasts 21 days.

• A public hearing is then conducted.

• Lands that belong to the Federal government are transferred to WAGP per the International Project Agreement (IPA) discussed in Chapter 3.

• Private lands are transferred through willing-buyer /willing-seller arrangements. In exceptional cases where negotiations do not reach mutually satisfactory results, the laws pertaining to eminent domain will be used as described in Chapter 3.

The process requirements are essentially the same for the Lagos State Ministry of Lands and Housing. In addition, a number of the central and federal government agencies have legal responsibilities in