LAND BANK OF THE PHILIPPINES

INTEGRATED ENVIRONMENTAL AND SOCIAL SAFEGUARDS MANAGEMENT FRAMEWORK (IESSMF)

METRO MANILA WASTEWATER MANAGEMENT PROJECT (MWMP)

FEBURARY 3, 2011

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Table of Contents  SECTION 1: PROJECT DESCRIPTION ........................................................................................... 1

1.0  INTRODUCTION.......................................................................................... 1 

1.1.  Objectives of the Integrated Environmental and Social Safeguards Management Framework ..................................................................................................... 2 

2.0  PROJECT OVERVIEW................................................................................. 4 

2.1.  Project Components ....................................................................................... 4 

3.0  SUB-PROJECT SELECTION....................................................................... 5 3.1.  Environmental safeguards criteria for sub-project selection.......................... 5 

3.2.  Timing of Environmental Assessment (EA) in Sub-loan Preparation ........... 6 4.0  POLICY FRAMEWORK ON ENVIRONMENTAL AND SOCIAL

SAFEGUARDS.............................................................................................. 6 

4.1.  Philippine laws and regulations...................................................................... 6 

4.2.  World Bank Safeguards Policies.................................................................... 7 5.0  ALIGNING SUB-PROJECT PROCESSING REQUIREMENTS WITH

ENVIRONMENTAL AND SOCIAL SAFEGUARDS ASPECTS............... 8 

5.1.  Step 1: Identification of Sub-projects According to the Selection Criteria.... 8 

5.2.  Step 2: Screening for Potential Environmental and Social Safeguard Impacts and Determination of Safeguard Instruments for Each Sub-project. 8 

5.2.1.  Environmental Safeguards Screening ............................................................ 9 

5.2.2.  Determination of Environmental Safeguards Documents for sub-projects . 10 

5.2.3.  Social Safeguards Screening ........................................................................ 10 5.2.4.  Social Safeguards Documents...................................................................... 10 

5.3.  Step 3: Development of Safeguards Documents Including Consultation and Disclosure .............................................................................................. 11 

5.3.1.  Information Disclosure and Consultation .................................................... 13 5.3.1.1.  Borrower and Sub-Borrowers’ Public Disclosure of Documentation.......... 13 

5.3.1.2.  WB Policy on Disclosure of the EA Reports ............................................... 13 

5.3.2.  Grievance redress ......................................................................................... 14 5.3.3.  Rapid response to Disasters and other Crises .............................................. 14 

5.4.  Step 4: Review and clearance of the safeguards documents........................ 15 

5.4.1.  Review by the Borrower .............................................................................. 15 5.4.2.  World Bank review ...................................................................................... 15 

5.5.  Step 5: Implementation of Agreed Actions and Supervision, Monitoring and Evaluation........................................................................... 16 

5.5.1.  Implementation............................................................................................. 16 5.5.2.  Supervision................................................................................................... 16 

5.5.3.  Monitoring and Evaluation........................................................................... 16 

5.5.3.1.  DENR Procedures ........................................................................................ 17 5.5.3.2.  Sub-Project’s monitoring and audit.............................................................. 17

SECTION 2: ENVIRONMENTAL SAFEGUARDS ........................................................................ 19 T E S F ESF

6.0  ENVIRONMENTAL MANAGEMENT PLAN (EMP).............................. 19 6.1.  Environmental Mitigation Plan .................................................................... 19 

6.2.  Environmental Monitoring Plan................................................................... 20 

7.0  INSTITUTIONAL ARRANGEMENTS ..................................................... 20 7.1.  Land Bank of the Philippines ....................................................................... 22 

7.2.  Manila Water Company, Inc. ....................................................................... 22 

7.3.  Maynilad Water Systems Inc. ...................................................................... 23 8.0  CAPACITY BUILDING AND TRAINING REQUIREMENTS................ 24 

9.0  INDICATIVE ESMF BUDGET .................................................................. 24 

9.1.  LBP of the Philippines ................................................................................. 24 9.2.  Manila Water Company, Inc. ....................................................................... 24 

9.3.  Maynilad Water Systems, Inc. ..................................................................... 24 

SECTION 3: SOCIAL SAFEGUARDS ............................................................................................. 25 T R P F RPF

10.0  RATIONALE FOR THE RESETTLEMENT POLICY FRAMEWORK ... 25 11.0  RPF OBJECTIVES ...................................................................................... 25 

11.1.  Overriding Development Objectives............................................................ 26 

12.0  DEFINITION OF TERMS........................................................................... 26 13.0  INSTITUTIONAL AND LEGAL FRAMEWORK..................................... 30 

13.1.  Institutional Framework ............................................................................... 30 

13.1.1.  LBP of the Philippines (LBP) ...................................................................... 30 13.1.2.  Sub-project Proponent.................................................................................. 30 

13.1.3.  Local Government Units (LGUs)................................................................. 31 

13.1.4.  External Monitoring Agency (EMA) ........................................................... 31 

13.1.5.  Affected Communities ................................................................................. 32 

13.1.6.  Resettlement Implementation Committee (RIC).......................................... 32 13.1.7.  Valuation Committee (VC) .......................................................................... 32 

13.1.8.  Complaints and Grievance Committee (CGC)............................................. 32 

13.2.  Legal Framework ......................................................................................... 33 13.2.1.  Government of the Philippines (GOP) Regulations..................................... 33 

13.2.2.  World Bank Policies..................................................................................... 33 

13.2.3.  GOP and WB Policies, and Framework for MWMP................................... 34 14.0  OPERATIONAL GUIDELINES ................................................................. 34 

14.1.  Screening...................................................................................................... 34 

14.2.  Review of Resettlement Plans...................................................................... 34 14.3.  Mitigation and Compensation ...................................................................... 36 

14.4.  Modes of Acquiring Private Assets.............................................................. 38 

15.0  APPLICATION OF THE PARTICIPATORY PROCESS.......................... 40 15.1.  Prefeasibility................................................................................................. 41 

15.1.1.  Preliminary Meeting with LGU ................................................................... 41 

15.1.2.  General Orientation of the Community........................................................ 42 15.1.3.  Social Assessment ........................................................................................ 42 

15.2.  Feasibility ..................................................................................................... 42 15.2.1.  Preparation of Draft Resettlement Plan........................................................ 42 

15.2.2.  Presentation of Draft RP .............................................................................. 43 

15.2.3.  Community Consultation ............................................................................. 43 15.3.  Finalization of the Resettlement Plan........................................................... 43 

15.4.  Project Implementation ................................................................................ 43 

15.5.  Monitoring.................................................................................................... 43 15.6.  Post Project Implementation ........................................................................ 44 

15.6.1.  Evaluation of the RP Implementation .......................................................... 44 

16.0  DISCLOSURE AND PUBLIC CONSULTATION .................................... 44 16.1.  Key Principles .............................................................................................. 44 

16.2.  Target Population ......................................................................................... 45 

16.3.  Timing .......................................................................................................... 45 16.4.  Information Documentation ......................................................................... 45 

17.0  GRIEVANCE PROCEDURES.................................................................... 46 

18.0  RAPID RESPONSE TO CRISES AND EMERGENCIES ......................... 46 

19.0  CAPACITY BUILDING AND TRAINING REQUIREMENTS................ 47 

20.0  COSTS AND BUDGETS ............................................................................ 47

ANNEXES

ANNEX 1: ENVIRONMENTAL ISSUES............................................................................................A1 A A WB O P B P E

A A

A B T E M P C A

ANNEX 2: SOCIAL ISSUES..............................................................................................................A10 A A C P P M A

A B S P I T S CA

A C GOP L O L A A

A D E R A P A

A E E A R A P A

A F R S S D C A

A G C R S A A

A H C T A

A I T R E A A

A J T R I A A

A K G C R A

A L W F R C G C P A

ANNEX 3: Summary of Public Consultation Proceedings on the MWMP IESSMF.................................................................................................................................A41 

LIST OF TABLES

Table 1.0 Financing Plan.......................................................................................... 5 Table 2.0 EA Requirements for Sanitation and Sewerage Projects ....................... 12 Table 3.0 Environmental Mitigation Measures and their Coverage ...................... 19 Table 4.0 Institutional Responsibilities in Environmental Safeguards .................. 21 Table 5: Checklist of Project-Affected Persons and Assets........................................ 37 LIST OF FIGURES

Figure 1: Metro Manila Wastewater Management Project IESSMF............................ 3

ACRONYMS BP (World) Bank Procedures CNC Certificate of Non-coverage DAO DENR Administrative Order DENR Department of Environment & Natural Resources DPD Detailed Project Description EA Environmental Assessment ECC Environmental Compliance Certificate ECR Environmental Compliance Report EDD Environmental Due Diligence EIA Environmental Impact Assessment EIS Environmental Impact Statement EMA External Monitoring Agency EMB Environmental Management Bureau EMM Environmental Mitigation Measures EMoP Environmental Monitoring Plan EMP Environmental Management Plan EMR Environmental Management Report EPMAR Environmental Performance Monitoring and Audit Report EPMD Environmental Program and Management Department ESMF Environmental Safeguards Management Framework FI Financial Intermediary FS Feasibility Study ICC Indigenous Cultural Communities IEE Initial Environmental Examination ISO International Standards Organization IESSMF Integrated Environmental and Social Safeguards

Management Framework LBP Land Bank of the Philippines LGU Local Government Unit LLDA Laguna Lake Development Authority LU Lending Units MWMP Metro Manila Wastewater Management Project MWCI Manila Water Company, Inc. MWSI Maynilad Water Services, Inc. MWSS Metropolitan Waterworks and Sewerage System NOL No Objection Letter OP Operational Policy PCO Pollution Control Officer PD Presidential Decree PENRO Provincial Environment & Natural Resource Office PIU Project Implementation Unit PMO Project Management Office RP Resettlement Plan

RAP Resettlement Action Plan RIC Resettlement Implementation Committee ROW Right of Way SA Social Assessment SLA Subsidiary Loan Agreement - World Bank

SECTION 1: PROJECT DESCRIPTION

1.0 INTRODUCTION

1. The Philippines has been maintaining strong economic growth due to activities in urban areas, especially around Metro Manila. As the urban areas continue to grow, the challenge of providing sustainable urban services arises, especially relating to sanitation and water. Since 1997, water supply, sewerage, and sanitation services in Metro Manila have been assigned by the Manila Waterworks and Sewerage System (MWSS) to be managed by the two private concessionaires: Manila Water Company Inc. (MWCI) for the east zone and Maynilad Water Services Inc. (MWSI) for the west zone. The east and west concession zones serve about 5.7 and 7 million, respectively. However, sewerage coverage remains very low at 16 percent in the east zone and 8 percent in the west zone. The need to increase the sewerage coverage in Metro Manila is particularly important in achieving the timelines set in the Clean Water Act and the Supreme Court mandamus decision to realize an improved water quality in Manila Bay. MWCI plans to increase coverage in the east zone to 30 percent in 2010 and 100 percent by 2037. This expansion is expected to cost almost US$800 million in investments. In the west zone, MWSI also plans to expand its wastewater collection and treatment services to 14 percent by 2012 and to 100 percent by 2037, which is expected to cost around US$1.7 billion.

2. In order to meet the objectives of increasing the coverage and effectiveness of wastewater collection and treatment as well as septage management in Metro Manila and its suburbs, the Government of the Philippines is preparing the Metro Manila Wastewater Management Project (MWMP) through the Land Bank of the Philippines (LBP), which will act as the financial intermediary and Borrower for the project, and through the two concessionaires -- MWCI and MWSI, which will be the Sub-Borrowers.

3. Key stakeholders were invited to attend a public consultation which was publicly announced two weeks before the consultation date which is October 5, 2010. The full version of the Integrated Environmental and Social Safeguards Management Framework (IESSMF) was distributed to the invited participants at least a week before the consultation. Copies were made accessible to the public through the Department of Environment and Natural Resources (DENR), the Borrower and the Sub-borrowers. The IESSMF was presented and discussed in detail during the consultation, which was attended by the project stakeholders with representations from various national and local government agencies and select non-government institutions. The consultation was held October 5, 2010 at the Air Quality Training Room, Environmental Management Bureau, DENR (see Annex 3 for a summary of the proceedings).

4. The Borrower, Land Bank of the Philippines, presented an overview of the proposed project and its safeguards oversight function during the implementation of this project. The concessionaires, Maynilad and Manila Water, presented a summary of their proposed sub-projects and provided a detailed presentation of the environment and social aspects of the IESSMF and the standard procedures that will be followed during sub-

project design and implementation. An Open Forum capped the consultation, which ended with the government pledging its support to ensure the successful implementation of the project. The IESSMF was updated to incorporate the comments received during the consultation.

5. Separate public consultations and environmental and social impact assessments will be conducted in each of the sub-project site locations to ensure that concerns of key stakeholders, site-specific issues and local conditions are considered in each of the sub-project designs, the Environmental Management Plan and the Resettlement Action Plan.

1.1. Objectives of the Integrated Environmental and Social Safeguards Management Framework

6. The IESSMF will establish the objectives, procedures, institutional framework, and implementation arrangements for identifying and managing potential environmental and social impacts of the project activities. It will form part of the project’s Operations Manual and is referenced in the project’s Legal Agreements. It will address mechanisms for public consultation and disclosure of project documents as well as redress of possible grievances, and includes guidance on rapid response to crises and emergencies in case this is needed during project implementation.

7. Its objectives are:

• To establish clear procedures and methodologies for the environmental screening, review, approval and implementation of sub-projects to be financed under the Project;

• To specify appropriate roles and responsibilities, and outline the necessary reporting procedures, for managing and monitoring environmental concerns related to sub-projects;

• To determine the training, capacity building and technical assistance needed to successfully implement the provisions of the Environmental Safeguards Management Framework (ESMF); and

• To identify funding requirements for the ESMF implementation for inclusion in the project cost.

8. The IESSMF is composed of two parts:

• Part 1- Environmental Safeguard Framework (ESF); and

• Part 2- Resettlement Policy Framework (RPF).

Figure 1 below summarizes the process of both environmental and social safeguards that will be applied for the Metro Manila Wastewater Management Project.

Figure 1: Metro manila Wastewater Management Project IESSMF

2.0 PROJECT OVERVIEW

9. The Philippines has been maintaining strong economic growth due to activities in urban areas, especially around Metro Manila. As the urban areas continue to grow, the challenge of providing sustainable urban services arises, especially relating to sanitation and water. Investments on sanitation and wastewater collection and treatment (around P1.5 billion per year nationwide) have not kept pace with the needs and much remains to be done.

10. The development objective of the MWMP is to improve wastewater services in Metro Manila and suburbs, thereby reducing the pollution load of Manila Bay, the catchment area of all domestic and industrial wastewater for the Metro Manila area. This will be achieved by supporting the two concessionaires in increasing the coverage and effectiveness of wastewater collection and treatment as well as septage management.

11. For this investment project, Land Bank of the Philippines (LBP) will act as the Borrower, while the two concessionaires, MWCI and MWSI, will be the Sub-Borrowers.

2.1. Project Components

12. The project is designed to allow flexibility for the concessionaires in deciding on the best approach to improve their delivery of sewerage services for Metro Manila. It is expected to be effective in early 2011 and the implementation period will be for seven years. This will allow the draw-down of Bank loan funds by the two concessionaires until 2017 to achieve service obligations agreed upon in the extension of the concession period, which involves acceleration and doubling of sewerage investments to comply with the Supreme Court decision to improve the quality of Manila Bay.

13. The project has two components, namely:

• Component 1: Investment Loans for MWCI and MWSI. These are investments that are necessary to improve wastewater services. Eligible investments will include wastewater collection and treatment, and septage management. Consulting assignments related to project implementation are also eligible. These would include: preparation of feasibility studies, construction supervision, preparation of environmental and social safeguard reports, preparation of project summary reports and audit reports, and public awareness campaigns to inform the citizens about the project and the benefits of better wastewater services. These sub-projects have not been identified and will be defined during implementation.

• Component 2: Disaster Response and Recovery Contingency Financing. This is a zero-value component which will allow for rapid reallocation of project funds for reconstruction activities through streamlined procurement and disbursement procedures.

14. A draft cost and financing plan for the project is shown below. This plan is subject to change and will be updated during appraisal.

Table 1: Financing Plan [This table needs to be updated after the loan amount is confirmed]

FINANCING* (US$ mln.)

COMPONENT COST (US$ mln.)

Bank Concessionaire 1. Investments and Technical Assistance

100 100 0

2. Disaster Response and Recovery Contingency Financing

0 0 0

Total 100 100 0 S

3.0 SUB-PROJECT SELECTION

15. The selection of the sub-projects follows a framework approach, which is used when the principles of a project and the criteria for sub-project selection are determined before appraisal, since not all individual investments can be identified and appraised before World Bank (WB) Board approval.

16. A sub-project is defined as an activity, or grouping of like activities that are within a primary sector (in this case sanitation and sewerage) covered by the project. Each sub-project is bound by the legal requirements of the project, including fiduciary and safeguards aspects. Three general types of sub-projects are likely to be included: (a) those eligible for retroactive financing under the project; (b) straightforward construction/rehabilitation sub-projects; and (c) those that arise in response to crises or emergencies.

3.1. Environmental safeguards criteria for sub-project selection

17. For sub-projects, five selection criteria, relating to environmental safeguards, have been agreed by the Bank and the Borrower, and these are listed below. All sub-projects shall:

i. Be consistent with the Metro Manila Sanitation and Sewerage Master Plan and other local development plans which reflect Government policies and procedures;

ii. Have obtained the necessary clearances and permits from national and local regulatory agencies and in accordance with relevant national, provincial, and local standards, procedures and codes;

iii. Be designed to ensure sustainable service delivery, including the financing of equipment and capacity building;

iv. Be designed based on a rational and efficient option analysis including technical, financial, social, environmental and safety considerations;

v. Be consistent with World Bank OP/BP 8.00. These will be given first priority if they address restoration of destroyed or damaged services or facilities financed under the project.

18. The Bank team will confirm the initial project eligibility screening. After each sub-project is prepared, the Bank team will conduct prior review and appraisal of the sub-projects deemed complex. In the case of all other sub-projects the Bank team will conduct post-review on a sampling basis during supervision of the simpler sub-projects.

3.2. Timing of Environmental Assessment (EA) in Sub-loan Preparation

19. The basic approach in the preparation of an environmental assessment report is to have it simultaneous, closely coordinated, and integrated with the preparation of the sub-project feasibility study. In doing this, all environmental aspects and impacts will be included right from the beginning to facilitate the proper selection of sub-project alternatives that will bear the minimal amount of environmental risk or negative environmental impact.

20. For eligible sub-projects a Detailed Project Description (DPD), will be prepared and an appropriate environmental assessment shall be conducted prior to engineering design. The assessment of predicted environmental impacts shall be the basis for the Sub-Borrower and the design consultants to select appropriate sub-project alternatives.

4.0 POLICY FRAMEWORK ON ENVIRONMENTAL AND SOCIAL SAFEGUARDS

21. The IESSMF is developed in line with the relevant national and local laws and regulations and the World Bank Safeguards Policies. The safeguards requirements for the project will build upon these national guidelines and requirements in order to streamline, to the extent possible, the documents required for each sub-project without compromising in any manner the Safeguard requirements of either the government or the World Bank.

4.1. Philippine laws and regulations

22. The following national laws and regulations relevant to the environmental safeguards and the protection of water bodies from pollution provide the basis for the overall framework of the ESF:

• Presidential Decree (PD) No. 1586, 1978 on the Environmental Impact Statement (EIS) System;

• Republic Act No. 9275, 2004 on the Philippine Clean Water Act;

• Presidential Proclamation No. 2146, 1981 on Environmentally Critical Projects / Areas;

• Administrative Order No. 42 by the Office of the President 2002, describing categories of projects and areas subject to the EIS System;

• DENR Administrative Order No. 2003-30, the Implementing Rules and Regulations (IRR) for the Philippines EIS System (2003), and its Revised Procedural Manual issued August 2007; and

• Memorandum Circular No.: 2010-14 Standardization of Requirements and Enhancement of Public Participation in the Streamlined Implementation of the Philippine EIS System.

4.2. World Bank Safeguards Policies

23. The following World Bank policies will or are likely to be triggered by the potential sub-projects:

• OP/BP 4.01 Environmental Assessment: Individual sub-projects will be screened and assigned the appropriate environmental categorization and environmental due diligence will be conducted in accordance with OP 4.01. A technical guidance note on the preparation of an Environmental Management Plan/mitigation measures (EMP), including use of standard Environmental Codes of Practices for contractors are included in this framework.

• OP/BP 4.04 Natural Habitats: Field visits and the location of potential sub-projects in urban areas indicate that natural habitats are unlikely to be adversely affected. Nevertheless, all sub-project proposals will be screened for potential adverse impacts on critical and non-critical natural habitats and suitable mitigation measures if any needed will be prepared as part of the sub-project specific EA and EMP.

• OP/BP 4.11 Physical Cultural Resources (PCR): Whenever a sub-project includes reconstruction or preservation of historic or archeological sites, PCR management plans would be prepared for those sub-projects, either as part of the sub-project specific EIA or as a stand alone document. All sub-projects will be reviewed for their potential impacts on PCR in the context of their respective EIA/EMP and procedures will be included in all relevant standard bidding documents to deal with chance finds during construction. A technical guidance note on “Preparation and implementation of PCR management plans” is included in this framework.

• OP/BP 4.12 Involuntary Resettlement: Land acquisition and involuntary resettlement are anticipated under the project, particularly for sub-projects involving service expansion or reconstruction at new sites. For this reason, OP 4.12 will be triggered. Sub-projects will be screened for land-related impacts and resettlement action plans will be developed and implemented. A technical guidance note on “Preparation and implementation of resettlement documents” is included in this framework.

• OP/BP 8.00 Rapid Response to Crises and Emergencies: In the event that an actual or imminent natural or man-made crises or disaster happens that would cause

major adverse economic and social impacts, the Bank may provide rapid responses to a Borrower’s request for urgent assistance. These include activities that support rapid response and relief to recovery operations.

5.0 ALIGNING SUB-PROJECT PROCESSING REQUIREMENTS WITH ENVIRONMENTAL AND SOCIAL SAFEGUARDS ASPECTS

24. As sub-projects will be identified and proposed for financing in a continuous manner during the project implementation period, screening for potential environmental and social impacts will be conducted and mitigation and management measures will be developed in line with the agreed IESSMF.

25. Environmental and social impact screening, mitigation and management measures development and implementation will follow these steps:

Step 1 - Identification of sub-projects according to the selection criteria;

Step 2 - Screening for potential environmental and social safeguard impacts and determination of safeguards documents required according to national regulations and World Bank policies;

Step 3 - Preparation of safeguard documents, consultation and disclosure;

Step 4 - Review and clearance of the safeguard documents; and

Step 5 - Implementation of agreed actions; and supervision, monitoring, and evaluation

5.1. Step 1: Identification of Sub-projects According to the Selection Criteria

26. During Step 1, the environmental and social specialists/consultants employed by the Sub-Borrower will participate in the identification and selection of sub-projects. They will evaluate and provide input, as appropriate, on ways to optimize the sub-project concepts to reduce environmental and social impacts.

5.2. Step 2: Screening for Potential Environmental and Social Safeguard Impacts and Determination of Safeguard Instruments for Each Sub-project

27. Once sub-projects have been identified, the Sub-Borrower, will ensure that the sub-projects are aligned with the screening process undertaken by DENR for its potential environmental and social safeguard impacts to determine the nature and extent of the environmental and social due diligence needed before Borrower and Bank approval of each sub-project. The choice of instruments (EA, Environmental Management Plan [EMP], Resettlement Action Plan [RAP], etc.) for each sub-project depends on the nature and magnitude of its potential impacts. Because the evaluation of the expected environmental and social impacts requires specialized technical skills, the Sub-Borrower may employ qualified environmental and social specialists as well as consultants to assist them in this task.

28. The success of an environmental safeguards screening is dependent on adequate baseline environmental data, technical expertise, good planning, management support,

and coordination with key players and decision makers. The Sub-Borrower must provide DENR with:

• a clear and concise statement of work including the expected technical and procedural standards to be met;

• available background information;

• EA documents standards;

• a reasonable schedule of deliverables;

• budgetary allocations; and

• procedures for post-review and comment, to include consolidation and clarification of comments by the Sub-Borrower before delivery to the EA team.

5.2.1. Environmental Safeguards Screening

29. With respect to environmental screening of sub-projects, the national regulations and World Bank policies are considered on the whole to be closely-related; both are impact-based and will require the Sub-Borrower to identify and assess potential impacts to environmental components such as water, air, land and natural habitats and biodiversity.

30. For specific screening according to World Bank policies, the Sub-Borrower will use the screening tool in Annex 1A to propose an environmental classification for each sub-project as follows:

• Category A: A sub-project of this type would have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the physical works.

• Category B: A proposed sub-project may have some adverse environmental impacts, but less adverse than those of Category A projects. These impacts are typically site-specific; few if any of them are irreversible; and in most cases mitigation measures can be readily designed. The great majority of sub-projects for rehabilitation and reconstruction works are likely to fall in this category.

• Category C: A proposed sub-project is likely to have minimal or no adverse environmental impacts.

31. The screening results will be cross-checked with national regulations, in order to determine the applicable EA documentation requirements. Three possible instruments are specified in the regulations: (a) Environmental impact assessment (EIA) report; (b) Initial Environmental Examination (IEE); and (c) Project description. In those cases where the EA documentation required by the regulations is not equivalent in depth and scope to those required by the World Bank safeguard policy requirements, the latter will apply.

5.2.2. Determination of Environmental Safeguards Documents for sub-projects

32. The environmental safeguards documentation requirements for each sub-project will be determined based on the screening procedures, as follows:

• Category A: Sub-projects will require an Environmental Impact Assessment (EIA) and an Environmental Management Plan (EMP) prepared in accordance with Bank requirements Moreover, all bidding documents will include a standard contract clause for chance finds of physical cultural resources (refer to relevant guidance notes Annex2B). The Sub-borrower will consult with the Borrower and the Bank team during preparation of all safeguards documents for Category A projects. Both the EIA and the EMP will be submitted to the World Bank for review and clearance.

• Category B: Sub-projects will require an EIA or simplified EIA (as required under the laws and regulations) and or an EMP (as per the Bank policy) consisting, at a minimum, of standard environmental codes of practices supplemented, if necessary, with additional analysis. The sub-project specific EMP and/or standard environmental codes of practices, including coverage of how to handle chance-finds of physical cultural resources, will be included in all construction contracts/ bidding documents.

• Category C: Sub-projects that are rated Category C do not require environmental safeguards documents, but will comply with the regulatory requirement for registration.

5.2.3. Social Safeguards Screening

33. Every sub-project will be screened by the Sub-borrower for social impacts, including: (a) the need, if any, for land acquisition and involuntary resettlement (permanent or temporary); (b) the impacts on the population to be affected; and, (c) whether there is an ethnic minority community that would be affected by the sub-project (as determined through a review the demographic information in the sub-project areas).

34. In addition to any requirements to meet World Bank policies, the Sub-borrower will also screen the sub-projects for national/provincial laws and regulations regarding land acquisition and involuntary resettlement.

5.2.4. Social Safeguards Documents

35. The Social Safeguards documents for each sub-project depend on the sub-project’s impacts, as follows:

• A resettlement action plan (RAP) is required if over 200 people will need to be involuntarily resettled. If fewer people need to be resettled, then an abbreviated RAP will be required, including if land acquisition or compensation for land already acquired under post-earthquake regulations is required.

• A social assessment (SA) is required if social impacts of significance are expected.

5.3. Step 3: Development of Safeguards Documents Including Consultation and Disclosure

36. Once the screening and documentation requirements are agreed by the Bank and confirmed by the DENR, the Sub-Borrowers will develop detailed safeguard documents and impact mitigation measures.

37. The EA Report, EMP and other documents (i.e., project study) necessary for application for the Environmental Compliance Certificate (ECC) shall be prepared by the Sub-Borrower. Subsequently, the Sub-Borrower shall then submit the documents to the DENR to comply with the ECC requirements.

38. It is the responsibility of the Sub-Borrowers to carry out the necessary EA required by the IESSMF, and to obtain the environmental clearances for each sub-project before starting the construction. Sound environmental practices have to be incorporated into the sub-project design and implementation, and potential negative impacts will have to be mitigated to acceptable levels / standards. The Sub-Borrowers are responsible for the quality and accuracy of the information in the EA document, as well as the transmission of the EA documents to DENR.

39. As the loans for investment financing are channeled to the Sub-Borrowers through the LBP, LBP shall require sub-projects to comply with existing environmental laws. The LBP’s Environmental Program and Management Department (EPMD) has the environmental expertise to oversee the Sub-Borrower in carrying out the EA and attaining environmental compliance to the conditions and statement of the ECC / EMP.

40. For all Category A projects, the Bank will provide advice to the Sub-Borrowers during the preparation of the documents. For Category B projects, Sub-Borrowers are encouraged to liaise closely with the Borrower and the Bank if any issues arise that may require clarification from the Bank on the application of Bank policies.

41. Safeguard documents will be subject to consultation and disclosure in an accessible place, in a timely manner, in a form and language understandable to key stakeholders, prior to the finalization of the documents. Particular attention will be given to ensure project-affected persons have adequate time and ready access to draft documents before consultation takes place.

42. Consultation for Category A projects and projects that require RAPs, or Social Assessments (SAs) will be undertaken at least twice during the preparation: at the beginning of the preparation of documents to scope environmental and social issues as well as prior to finalization of the safeguards based on the preliminary results of the required safeguard documents in order to take into account public concerns before submitting final documents to the Bank.

Table 2: EA Requirements for Sanitation and Sewerage Projects (Category B)

EA process Philippine EIA Law (PD 1586)

World Bank OP 4.01

Environmental Assessment

Harmonized EA requirements

Screening Category B:Threshold of coverage –domestic wastewater treatment facility: equal to or greater than 5,000 cubic meters per day

Category B:Projects whose potential adverse environmental impacts are moderate, manageable and site-specific

Category B:Potential adverse environmental impacts shall be moderate, manageable and site-specific

Public Consultation

Public Hearing/ Consultation

Public Hearing/ Consultation of project affected groups and local NGOs

Public Hearing/ Consultation of project affected groups and local NGOs

Conduct of EA and documentary requirements

Category B: Programmatic expansion applications: Environmental Performance Report and Management Plan (EPRMP).

Category B: • Potential adverse environmental impacts in Project Appraisal Document (PAD), Project Identification Document (PID), Integrated Safeguards Data Sheet (ISDS) • Environmental Management Plan (EMP) • Public consultations/ hearings

• Environmental Management Plan (EMP) 1) Mitigation measures 2) Monitoring 3) Capacity development and training 4) Implementation schedule and cost estimates • Public consultations/ hearings

Review and Approval

EPRMP and ECC • IESSMF; • 1st year EMPs

• IESSMF • 1st year EMPs

Public Disclosure

DENR website and public library and available at the EIA office

• PAD • PID • ISDS • EMP

• IESSMF • PID • EMP • PAD (after WB Board approval) • ISDS (after WB Board approval)

Monitoring and reporting

• Environmental Compliance Report • Semi-annual self- monitoring reports

• EMP • Annual third party audit report

• Environmental Compliance Report • Semi-annual self- monitoring reports of ECC and EMP

EA process Philippine EIA Law (PD 1586)

World Bank OP 4.01

Environmental Assessment

Harmonized EA requirements

• Annual Third party audit report

• Annual third party audit report

5.3.1. Information Disclosure and Consultation

43. Information disclosure and public consultation are important and necessary in sub-project preparation and implementation. These enable sub-project affected people and other stakeholders to participate in and contribute to the sub-project planning and implementation, and thereby help minimize sub-project adverse impacts and maximize sub-project benefits. The level of public consultation and the scope of information dissemination will be commensurate with the environmental category of the sub-project and the significance of the social impacts.

44. Information to be disclosed will include, at a minimum: sub-project design, impacts, and proposed mitigation measures. During the design and implementation phases, this information will be updated and continually made available to stakeholders. Disclosure means could vary, but may include posters, booklets, newspapers, the internet, and community meetings. All safeguard documents will be disclosed at a public place accessible to affected groups and other stakeholders prior to consultation to establish the basis for meaningful consultation. Disclosure and consultation mechanisms will be planned and detailed in the relevant safeguard documents.

5.3.1.1. Borrower and Sub-Borrowers’ Public Disclosure of Documentation

45. Public disclosure of documentation shall be in accordance with LBP’s Executive Order No. 073 series of 2009 on Guidelines on Classification, Handling, Access and Disclosure of Information Assets, including any amendments thereof.

46. In view of the World Bank’s Access to information Policy and Open Data Initiative, the Borrower and Sub-Borrowers shall allow disclosure of information regarding environment and social safeguards.

5.3.1.2. WB Policy on Disclosure of the EA Reports

47. Whenever the WB requires an environmental assessment (EA), the Sub-borrower prepares an EA report as a separate, free-standing document. The EA report is publicly available:

• after the Sub-Borrower has made the draft EA report available at a public place accessible to project-affected groups and local NGOs in accordance with OP/BP 4.01, Environmental Assessment, and

• after such EA report has been officially received by the WB, but before the WB begins formal appraisal of the project.

48. For financial intermediary (FI) operations or sector investment operations that are expected to have sub-projects which, for environmental screening purposes, are classified as Category A under OP/BP 4.01, Environmental Assessment, each identified participating FI or the responsible project entity provides the WB, before the beginning of formal project appraisal, with an assessment of the institutional mechanisms or framework in place for conducting the EAs for such Category A sub-projects.

49. Any separate reports for Category B sub-projects are made available to project affected groups and local NGOs. Public availability in the borrowing country and official receipt by the World Bank for projects proposed for funding, are prerequisites to World Bank appraisal of these projects.

50. Once the Sub-Borrower officially transmits the Category A and B EA reports to the Borrower and the Bank, the Bank distributes the summary in English to the Executive Directors and makes the report available through its InfoShop.

5.3.2. Grievance redress

51. A grievance redress mechanism for the project is necessary for addressing legitimate concerns of affected individuals and groups who may consider themselves deprived of appropriate treatment under the project. The Sub-Borrower’s mechanism would include: (a) a recording and reporting system, including grievances filed both verbally and in writing; (b) designated staff with responsibility at various levels; and (c) a time frame to address the filed grievances. This mechanism will be detailed in the sub-project safeguards documents. The functioning of the grievance redress mechanism will be regularly monitored and evaluated by the Borrower during project implementation.

5.3.3. Rapid response to Disasters and other Crises

52. In the event that a natural disaster or a crisis occurs, the significant environmental issues that may be encountered should be immediately addressed once the disaster or crisis is under control. A specific environmental mitigating measure would require the management of wastes so as not to further harm people and the environment. This could entail the collection and disposal of large quantities of garbage from the treatment facilities that would include destroyed pumps and other mechanical equipment, debris of all types -- with possibly hazardous materials.

53. The immediate steps to be taken to address the environmental impacts generated by the project during natural disasters should be part of the mitigating measures identified in the Environmental Management Plan. A swift action plan should also be put in place by the Sub-Borrower to immediately bring back the treatment facilities back to working condition. The actions taken should be included in the Environmental Compliance report and the self-monitoring report that will submitted by the Sub-Borrower to the LBP, DENR-Environmental Management Bureau (EMB) and the WB.

5.4. Step 4: Review and clearance of the safeguards documents

5.4.1. Review by the Borrower

54. Review of the environmental and social safeguards documents, according to national regulations, is the responsibility of the Borrower; these documents are to be cleared by the WB. In line with its environmental credit policy, the Borrower shall monitor the Sub-Borrower’s compliance with the WB safeguard policies.

55. The Borrower will exercise environmental due diligence (EDD) by keeping records of sub-project EA reports, feedback / technical information, and ECCs / Certificates of Non-Coverage (CNCs). Environmental safeguards documents may undergo substantive review by the Borrower, particularly if pressing environmentally critical issues exist. The Borrower shall conduct EDD for MWMP sub-projects, as follows:

i. Description of both the positive and negative impacts to provide a balanced risk assessment. It will also recognize the DENR as the sole governmental organization that is mandated to issue ECCs based on the Philippine Environmental Impact Statement (EIS) System Law (PD No. 1586). Sub-Borrowers are required to coordinate with the DENR-EMB to certify that the proposed sub-project/s underwent environmental assessment prior to finalization and implementation of plans.

ii. Environmental assessment and monitoring shall be conducted until project completion. Thereafter, the Borrower will continue monitoring of environmental compliance of the sub-projects consistent with its environmental policy on credit delivery, until the loan is fully paid.

iii. LBP-EPMD is unit assigned to conduct assessment/monitoring on the environmental compliance of approved sub-projects.

5.4.2. World Bank review

56. The requirements for review and clearance of the environmental documents by the World Bank are as follows:

• Category A: The EIA/EMP and other relevant documents (e.g., Dam Safety Programs (DSPs), PCR management plans) for all Category A sub-projects will be subject to World Bank standard review and clearance procedures prior to approval of the sub-project.

• Category B: The Simplified EA (or IEE) and EMP for Category B sub-projects will not be subject to World Bank review and clearance prior to approval of the sub-project. However, these documents will be post-reviewed on a selective basis during supervision missions.

• Category C: No review required by the World Bank.

57. The requirements for review and clearance of the social documents by the World Bank are as follows:

• All RAPs, abbreviated RAPs, and SAs will be subject to review and clearance by the World Bank prior to approval of the sub-project.

5.5. Step 5: Implementation of Agreed Actions and Supervision, Monitoring and Evaluation

5.5.1. Implementation

58. Implementation of the safeguards measures during sub-project implementation is the responsibility of the Sub-Borrowers. Any costs associated with the government EA process (i.e., filing and processing fee of EA report) and cost of environmental monitoring shall be shouldered by the Sub-Borrower. The Sub-Borrower should put up its own funds for EA / ECC processing since the loan does not finance any processing fee and cost associated with review charged by DENR.

5.5.2. Supervision

59. The Sub-Borrowers will be responsible for the implementation of the EMP and social safeguard-related actions approved by the government and the Bank. The World Bank task team will regularly visit the sub-project areas throughout project implementation in order to:

• provide guidance in the preparation of safeguards instruments;

• review the screening results, due diligence review report, and safeguard documents of proposed sub-projects; and

• supervise the implementation of the safeguards instruments to ensure they are implemented in compliance with the Bank policy requirements.

5.5.3. Monitoring and Evaluation

60. Sub-projects that are covered by the Philippine EIS System are required by DENR Administrative Order (DAO) 2003-30 to conduct regular self-monitoring of parameters indicated in the sub-project’s EMP.

61. The primary purpose of compliance monitoring is to ensure the implementation of sound and standard environmental procedures as defined during the project preparation. Specifically, it aims to:

• monitor project compliance with the conditions set in the ECC;

• monitor compliance with the EMP and applicable laws, rules and regulations; and

• provide a basis for timely decision-making and effective planning and management of environmental measures through the monitoring of actual project impacts vis-a-vis the predicted impacts in the EIS / IEE.

5.5.3.1. DENR Procedures

62. All projects covered by the Philippine EIS System which have been issued an ECC shall be subjected to periodic monitoring by the DENR ( i.e., compliance and impact monitoring in accordance with established procedures and protocols). Within the framework of the Philippine EIS System, the responsibilities of monitoring projects are lodged with the EMB regional offices to which the latter can request for the assistance of the DENR Provincial Environment & Natural Resource Office (PENRO).

63. As a minimum requirement in compliance monitoring, DENR-EMB shall focus on the following:

• status of Sub-Borrower’s delivery of commitment made in its EMP (or, in the case of IEE Report, the Summary Matrix of Impacts);

• effectiveness of the committed EMP in mitigating project’s environmental impacts; and

• meeting the terms and conditions of the ECC.

5.5.3.2. Sub-Project’s monitoring and audit

64. The Sub-Borrower shall monitor compliance with the conditions of the ECC and the EMP and carry out the requisite data collection during both the pre-construction and construction phases. The Sub-Borrower must satisfy this requirement by submitting an Environmental Compliance Report (ECR), which includes an Environmental Monitoring Plan (EMoP) and a Self- Monitoring Report (SMR) on a semi-annual frequency ( i.e., within January and July of each year) to the concerned DENR-EMB regional office. Copies of the submitted ECR and SMR must be provided in two sets to the Borrower for reference and review purpose. One set of the EMR received by the Borrower will be transmitted to the WB for record keeping.

65. Semi-annual ECRs and SMRs shall be submitted to DENR-EMB, the LBP-EPMD and the WB, including:

• presentation of the collected data;

• discussion on the compliance or non-compliance to the EMP and ECC;

• conclusions and recommendations; and

• photos of environmental monitoring and adherence to mitigating measures.

During the sub-project developmental phase, the Sub-Borrower shall furnish the LBP-EPMD copies of the ECR prepared for the pre-construction and construction stages of the sub-project. Once construction works are completed, the Sub-Borrower shall submit a statement of environmental closure for the construction phase to the LBP-EPMD, DENR- EMB and WB.

66. During the sub-project operational phase, the Sub-Borrower shall continue the submission of ECRs and start the submission of the SMR to LBP-EPMD, DENR-EMB and WB on a semi-annual basis. The Sub-Borrower will also commission the conduct of

an Annual Third Party Environmental Performance Audit and submit the Audit report to the LBP-EPMD, DENR and the WB for review and evaluation. If any irregularities are observed in the third party audit, the LBP-EPMD will report its findings to the Sub-Borrower and discuss the measures to be taken.

67. During the operational stage of the sub-project, the Borrower shall oversee the compliance and performance of the Sub-Borrower based on the environmental documents that the Sub-Borrower will prepare, including an Annual Third party Environmental Performance Audit of the project (e.g., EMP, Self-Monitoring Reports, wastewater laboratory results (if applicable), etc.) and will conduct site validation to substantiate the documents during LBP-EDD schedules and WB Missions.

68. An LBP Environmental Compliance Report (ECR) shall be prepared by the Borrower to determine the sub-project’s compliance with the environmental requirements. The LBP ECR shall be submitted by EPMD to LBP’s Corporate Banking Department I CBD-I with recommendations to the Sub-Borrower on noted deficiencies in the required environmental documents.

69. Monitoring and validation of the sub-project shall be undertaken annually by the Borrower until project completion to document the environmental performance of the project and note irregularities/inconsistencies/non-conformities, if there will be any. An Environmental Performance Monitoring and Audit Report (EPMAR) to include recommendations to the Sub-Borrower on noted observations/non-compliances on their operations, shall be prepared annually by EPMD and submitted to CBD-I. Thereafter, the Borrower will continue monitoring of environmental compliance of the sub-project consistent with its environmental policy on credit delivery, until the loan is fully paid.

70. Apart from the DENR review of the EA report, the WB will also conduct a review of projects to make sure the Borrower is implementing the framework adequately. WB staff will advise and support the Borrower in carrying out its responsibilities. Within the WB, operational staff will provide information to the Borrower and ascertain whether policy requirements have been met.

SECTION 2: ENVIRONMENTAL SAFEGUARDS

The Environmental Safeguard Framework (ESF)

6.0 ENVIRONMENTAL MANAGEMENT PLAN (EMP)

71. An EMP describes possible adverse effects that the proposed projects may pose to the environment. It recommends mitigation measures, and how will they be implemented. It monitors both positive and negative effects of the project, designates the entity responsible for implementing the EMP, and estimated costs and sources of funds. Annex 1A provides the WB Operational Policy 4.01, Annex C covering what constitutes an Environmental Management Plan. Annex 1B presents a template for an EMP checklist that includes four sections: a General Project and Site Information Form, Safeguards Information, a Environmental Mitigation Measures, and an Environmental Monitoring Plan.

6.1. Environmental Mitigation Plan

72. Environmental Mitigation Measures (EMMs). Table 3 below shows examples of environmental mitigation measures (EMMs) in an Environmental Mitigation Plan that forms part of the EMP. The Environmental Mitigation Plan should include identification of the institution responsible for implementing the measures and the costs. See Annex 1B.

Table 3: Environmental Mitigation Measures and their Coverage Activities generating Impacts Key Issues Addressed Project Preparation (Planning & Design)

• Incorporation of environmental concerns in project preparation to avoid impacts in construction and operation stages

• Avoidance of siting in sensitive areas that are prone to flooding or landslides, etc

• Compliance with legal requirements. Site Preparation • Relocation of utilities, common property resources

and cultural properties • Avoidance of adverse effect on waterways 

Construction Camps • Avoidance of sensitive areas for location of construction

Quarry sites • Avoidance of agriculture lands as quarry sites�• Redevelopment of quarry sites 

Topsoil Salvage, Storage & Replacement

• Topsoil removal from areas temporarily/permanently used for construction

• Reuse of topsoil at areas to be revegetated  Drainage • Conduct of hydrological investigations during

project preparation

• Provision of longitudinal and cross drainage as per requirements • Proper location of drainage outfall

Wastewater and waste Management • Adequate treatment prior to discharge/ disposal • Proper location of effluent outfall • Regular monitoring of effluents to ensure

compliance to standards • Safe collection, treatment and disposal of wastes 

Slope Stability and Erosion Control • Slope stability • Protection of adjacent areas from debris due to

construction Construction Plants & Equipment Management

• Maintenance of machinery and equipment to avoid pollution

Public and Worker’s Health & Safety

• Provision of Personal Protective Equipment to workers

• Provision of basic necessities to workers • Public safety within/ adjacent to construction sites • Public safety during operation of the treatment

facilities Cultural Properties • Avoidance of impacts due to project

• Protection of boundaries from impacts due to construction

• Relocation in case impacts are unavoidable

6.2. Environmental Monitoring Plan

73. The Environmental Monitoring Plan (EMoP) defines selected indicators for ensuring that mitigation measures are being implemented and are effective (e.g., if there is a mitigating measure to control noise during construction, the monitoring plan should include noise measurements during construction). It ensures the project is complying with national regulations and WB Safeguard requirements, addresses concerns which may rise during the public consultation, and identifies authorities responsible for monitoring including estimated related costs.

7.0 INSTITUTIONAL ARRANGEMENTS

74. The Borrower and the Sub-Borrower will engage qualified and experienced staff/consultants to carry out the planning, preparation, review, implementation and monitoring of compliance with the safeguards requirements in order to provide information on key environmental and social aspects of the sub-projects and the effectiveness of the planned mitigation measures. This will enable the government and the World Bank to evaluate the performance of the project’s environmental and social program and allow corrective action to be taken when needed. In the cases of sub-projects with RAPs, the Sub-Borrower will hire an independent third party consultant

acceptable to the WB to conduct external monitoring of RAP implementation. The external monitoring report will be submitted to the WB and the Borrower.

75. In the environmental safeguards planning and implementation process, the various institutional roles and responsibilities are described below (Table 4):

Table 4: Institutional Roles and Responsibilities

Sub-Project EA process

Sub-Borrower LBP WB

A. Sub-project Screening

1. Screens and scopes sub-projects in coordination with DENR

2. Scopes Category A sub-projects with the WB.

For Category A sub-projects, advises on scope of EA

B. Environmental Safeguards Preparation

3. Prepares the corresponding EA Reports and apply with DENR-EMB for issuance of ECC.

C. Sub-project Loan Approval

4. Secures ECC from DENR-EMB and submits to LBP-EPMD copies of such environmental clearances (submission of the final EA documents i.e. EA reports, ECC, shall be the basis of release for the sub-projects construction phase).

5. Reviews EA reports and ECC to verify if necessary environmental safeguards are provided. 6. Transmits safeguards document to WB for reference, or for comments. For Category A sub-projects, secures Bank’s non-objection letter (NOL). 7. EPMD submits ECR to CBD-I.

Reviews & issues NOL on the final EA report (only applies to classified Category A sub-projects)

D. Sub-project implementation and monitoring

8. Submits reportorial requirements to LBP and WB per Agreements.

• Semi-annual

Environmental Compliance report and Self monitoring report during implementation

• Annual Third Party Audit Report

9. Reviews reports submitted by Sub-Borrower and transmits the same to WB per Agreement.

10. EPMD issues

EPMAR to CBD-I annually or as the need arises.

Provides feedback, if necessary

76. The Sub-Borrowers shall submit an ECC application for Category B projects. These are projects that are not environmentally critical, but which may cause negative environmental impacts because they are located in environmentally critical areas. The application to be submitted to DENR would be an IEE, and an Environmental Performance Report and Management Plan (DAO No. 2003-30). In parallel, the Sub-Borrower will also submit an Environmental Management Plan (EMP) to the World Bank through the Borrower, as provided for in OP 4.01 Annex C: WB OP/BP on Environmental Assessment. EMPs will be submitted to the World Bank only for Category A sub-projects.

77. Approved ECCs issued by the DENR will be transmitted by the Sub-Borrower to the Borrower. During the monitoring phase of sub-projects, the Borrower will review the Sub-borrower’s compliance with the conditions of the ECC. Environmental reports and related documents shall be officially transmitted to the World Bank by the Borrower.

7.1. Land Bank of the Philippines

78. LBP is the Borrower under the MWMP and will act as the servicing agent of the Government. LBP will on-lend the loan funds to the two Sub-Borrowers, namely: MWCI and MWSI. As the Borrower, it shall perform oversight function to ensure that environmental loan covenants are complied with. MWCI and MWSI will submit environmental documents (i.e., EA, ECCs, CNCs, EMPs, etc.) to the LBP’s CBD-I.

79. The environmental documents will be reviewed by the Environmental Program and Management Department (EPMD). The Borrower, through the Program Management Department 2, as the Program Manager, submits the environmental documents to World Bank for concurrence.

7.2. Manila Water Company, Inc.

80. The Program Management Department is the overall in-charge entity for project conceptualization, development, approval, procurement, execution and close-out. The Project Manager (formerly referred to as Project Development Officer) is in charge of all stages of the project until closure and turnover to the Operations Group. The feasibility studies are undertaken by the Project Manager, who makes sure that the bid documents are responsive to the objectives of the project. He/she orchestrates all necessary material, personal and financial resources available to Manila Water to ensure project completion according to the schedule and at the best quality possible. It is currently headed by (to be determined). For the MWMP, (to be determined)is the Program Manager.

81. The Project Delivery Group takes charge of project procurement and execution, until commissioning and turnover to the Operations Group. Its main role is to deliver the infrastructure and hardware in working condition to the Facility Manager. TBD is the current Officer-in-Charge for the Project Delivery Group.

82. The Operations Group is the ‘owner’ of the facilities. Its biggest groups are the Water Supply Department and the Wastewater Operations Department. Each facility or facility cluster is headed by a Facility Manager who is in charge of day-to-day operations,

including process control, vendor management and environmental compliance. He/she is already on board from the conceptualization of the project but takes over the facility after commissioning. The Pollution Control Officer (PCO) for the facility or facility cluster is a member of the Facility Manager’s team. The current Operations Group Director is (TBD) and the head of the Wastewater Operations team is (TBD).

83. The Environmental Planning and Sustainability Department is a support team for the Program Management, Project Delivery and Operations Groups, as well as other Manila Water units. It serves as an internal consultant/enabler on any environmental matter (e.g., government policy development, compliance, training, ISO accreditation) and acts as internal auditor, making sure all commitments indicated in the Environmental Management Plans and Environmental Compliance Certificates are complied with at any stage of the project. It is also the team responsible for reviewing project briefs and making sure the necessary environmental issues are brought out and addressed. It assists the Project Manager in preparing and reviewing the Environmental Impact Statements and/or Environmental Management Plans, and in acquiring the necessary environmental permits from government regulators. As the Corporate Pollution Control Officer (PCO) of the company, the department ensures that all facilities and projects comply with existing environmental regulations, and also implements ‘beyond compliance’ environmental initiatives in support of the sustainability vision of Manila Water. (TBD)is the current head of the EPS department.

84. The Environmental Planning and Sustainability Department, headed by (TBD)(Engineer), will take charge of compliance with all environmental regulations. This includes securing the ECC and compliance with the EMP. This department is staffed with 4 people: Wastewater Technical Support, Facilities Compliance Manager, Environmental Systems Manager, and an Administrative Assistant.

7.3. Maynilad Water Systems Inc.

85. The Environment Management and Integrated Management System (ISO), headed by (TBD), will take charge of Environmental Assessment, monitoring, and compliance with all the environmental requirements of the project. He is ably assisted by his Manager, (TBD), and five Environmental Specialists.

86. All Maynilad facilities have accredited Pollution Control Officers (PCOs). These PCOs are accredited either by Laguna Lake Development Authority (LLDA) or DENR, depending on the location of the facilities. These PCOs report directly to their operational units. The Environmental Department of MWSI has oversight control over the PCOs.

87. PCOs prepare Self Monitoring Reports (SMRs) and submit these to the Environmental Department where the document is reviewed and signed by the Corporate PCO, the Environment Department Head. The document is sent to DENR or LLDA.

88. The Environmental Department consolidates these quarterly SMRs for submission, and as an attachment for the renewal of the discharge permit. It also audits the PCOs as part of the surveillance audit in its ISO 9000, ISO 14000, and OSHAS 1800 Certification. The head of the Environmental Department is also Maynilad ISO. The department

ensures that PCOs are regularly informed on the latest environmental requirements, and that they undergo CPE.

89. This department conducts EIA and EIS-related studies, scoping studies, and public consultations, and also applies for the ECC and secures its issuance, conducts regular inspections for issuance of all ECCs, and secures other permits relative to environmental requirements.

8.0 CAPACITY BUILDING AND TRAINING REQUIREMENTS

90. The Borrower and the sub-borrowers conduct regular training activities as part of the continuing professional development program for their staff. To ensure the successful implementation of this project, LBP, MWSI and MWCI will conduct specific training activities designed to strengthen the capacity of their project staff. The training topics they identified include: conduct of environment and social impact assessments, due diligence reporting on safeguards compliance, wastewater project assessment and performance monitoring, project management, etc.

9.0 INDICATIVE ESMF BUDGET

9.1. LBP of the Philippines

91. LBP will provide the necessary resources and staff to meet the environmental requirements of the framework that will include tapping the personnel of the Environmental Protection and Management Department (EPMD) to handle the environmental compliance concerns of the project. They will be assisted by a Consultant to fulfill their monitoring and reporting functions.

9.2. Manila Water Company, Inc.

92. MWCI has set aside an IESSMF budget for the duration of the project. This budget is allocated to the following activities: training, EMP monitoring, reporting and consultancy services.

9.3. Maynilad Water Systems, Inc.

93. The IESSMF budget commitment of MWSI for the duration of the project is allocated to the following activities: preparation of EIA, EMP; conduct of public consultation; and securing necessary permits; training; EMP implementation and monitoring, and securing an Environmental Management System; and Environmental Health and Safety Certification.

SECTION 3: SOCIAL SAFEGUARDS

The Resettlement Policy Framework (RPF)

10.0 RATIONALE FOR THE RESETTLEMENT POLICY FRAMEWORK

94. The MWMP aims to improve wastewater services in Metro Manila. This will be achieved by supporting the two concessionaires namely: Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. (MWSI) in increasing the coverage and effectiveness of wastewater collection and treatment as well as septage management. This effort also supports the Supreme Court decision in 2008 ordering government agencies concerned to clean up, rehabilitate, and preserve Manila Bay and restore and maintain its waters to SB level (class B) fit for swimming, skin-diving and other forms of contact recreation. In the course of implementing these investment projects, project locations sometimes cause loss of land, structures and /or other assets or access to sources of livelihood to people who may be occupying the same site.

95. Unmitigated involuntary resettlement, as an outcome of development projects, has been noted to result in the dismantling of production systems and the loss of productive assets or income sources leading to further impoverishment of affected persons. In some instances, people are relocated to new environments where their social support systems may no longer be accessible, their productive skills may be less applicable and the competition for resources greater; as a result, community institutions and social networks are weakened.

96. The coverage of this project is the East and West concession areas of MWCI and MWSI, respectively. The East zone consists of 23 cities and municipalities of eastern Metro Manila and Rizal Province which include Pasig, Mandaluyong, Marikina, Taguig, Pateros and parts of Manila and Quezon City. On the other hand, the West zone covers Caloocan, Las Piñas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Parañaque, Valenzuela, parts of Quezon City, a part of Makati, Cavite City, and the municipalities of Rosario, Imus, Noveleta, Bacoor, and Kawit in Cavite.

97. There are no ancestral domains within Metro Manila and any Indigenous Peoples (IP) groups or communities found in Metro Manila are temporary residents seeking economic opportunities. However, in some provinces near Metro Manila, such as Bulacan and Rizal, there are some IPs belonging to the Remontados and Dumagats. For MWMP, most of the investments are expected to be located in urban areas not generally occupied by IPs or within ancestral domains that are mostly found in upland, coastal and other isolated areas. Thus, it is expected that no IP will be affected by the Project. However, in case there will be affected IPs, the World Bank OP 4.10 will be applied.

11.0 RPF OBJECTIVES

98. The objective of the Resettlement Policy Framework (RPF) is to lay out the principles and organizational arrangements for the following:

• resettlement and compensation, consistent with the goal of assisting displaced persons in their efforts to improve or at least restore their standards of living from the pre-project level; and

• mechanisms for meaningful participation that help ensure that the development process respects the dignity, human rights, and economies of project-affected people. 11.1. Overriding Development Objectives

99. In the design and implementation of the Sub-projects, efforts must be made to ensure that all adverse impacts of acquisition of assets and properties are fully mitigated and that displaced persons (DPs) are benefited and are not worse off. Toward this end, the following fundamental measures will be ensured:

• Effects on income and resources will be avoided or minimized in assets acquisition that result in displacement of people;

• No demolition of assets and/or entry to properties will be done until a DP is fully

compensated, except when a court of law grants a Writ of Possession to the Sub-project Proponent for the subject property in expropriation cases as explained in Section 5.4 of this Framework;

• DPs are provided with sufficient compensation and assistance for lost assets, income

sources, and livelihood that will assist them to improve, or at least maintain their pre-Sub-project standard of living;

• Special attention is given to affected vulnerable groups, such as poverty groups, the

handicapped, women-headed households, people with weak or absent tenure rights, etc; and

• All Sub-project stakeholders, including DPs, are consulted and are encouraged to

participate in varying practicable ways in the design, implementation and operation of the Sub-project.

12.0 DEFINITION OF TERMS

100. Compensation means payment in cash or in kind for an asset to be acquired or affected by an infrastructure project at replacement cost (as defined below).

101. Cut-off Date is the date prior to which the occupation or use of the Sub-project area makes residents/users of the Sub-project area eligible to be categorized as affected persons. The cut-off date coincides with the commencement of the census of affected persons within the project area boundaries. Persons making claims based on subsequent occupation after the cut-off date are not eligible for claims for compensation and other entitlements.

102. Displaced Person (DP) includes any person or persons, household (sometimes referred to as project affected family), a firm, or a private or public institution who, on

account of the acquisition of assets in a project, would have their right, title or interest in all or any part of a house, land (e.g., residential, agricultural, and industrial, including pasturelands, fishponds, communal forest, etc.), fish pens, communal fishing grounds, annual or perennial crops and trees, or any other fixed or movable asset acquired or possessed, in full or in part, permanently or temporarily, and who might suffer income or business loss as a consequence thereof. Eligible DPs may fall under any of the following three groups:

x those who have formal legal rights to land including customary and traditional rights;

x those who do not have formal legal rights to land at the time of the cut-off date but have a claim to rights to such land or assets; and

x informal settlers and who satisfy the condition for eligibility for compensation as provided in the definition of‘cut-off-date’ as stated above.

Non-eligible DPs include those making claims based on subsequent occupation after the cut-off date.

103. External Monitoring Agency (EMA) is the entity designated by the Sub-project Proponent to monitor the implementation of its Resettlement Plan.

104. Financial Assistance is the cash amount given to tenants/settlers/occupants of severely affected land on top of cash payment/compensation for their crops and other fixed assets actually damaged by a Sub-project. It will also be given to owners of land acquired under Commonwealth Act 141 for the area of the affected portion subject to Section 112 thereof, which grants government easement right over a 60-meter wide corridor. Financial assistance will be determined based on applicable laws, in consultation with stakeholders and relevant government agencies, and thus given to:

• marginally and severely affected structures used for business, with or without title to the land, to cover for income loss;

• marginally and severely affected farmlands, fishponds and fishpens that are not covered by any acceptable proof of ownership, including portions of property acquired through CA 141, Section 112, to cover for improvements introduced to make the property productive;

• severely affected farmlands, fishponds and fish pens that are covered by a title or other acceptable proof of ownership (e.g. ancestral claim, usufruct, ancestral land claim, etc.);

• adisplaced person (DP) who holds full title, tax declaration or some proof of traditional ownership (such as usufruct when the DP belongs to an indigenous community) to the land where his/her severely affected dwelling stands and who has to shift elsewhere; and/or

• an informal settler who has to shift elsewhere for food subsidy.

105. Independent Shops are commercial stalls, such as groceries, vulcanizing shops, tailoring shops, beauty parlors, market stalls, hotels, movie houses, and similar

establishments that serve as the owner’s principal source of income. Sari-sari stores (i.e., variety shops that are usually attached to a dwelling unit) may fall in the same category of independent shops.

106. Indigenous People (IPs) or Indigenous Cultural Communities (ICC) refer to a group of people or homogenous societies identified by self ascription and ascription by others, who have continuously lived as an organized community on communally bounded and defined territory and who have, under claims of ownership since time immemorial, occupied, possessed customs, traditions and other distinctive cultural traits, or who have through resistance to political, social and cultural inroads of colonization, non-indigenous religions and culture, became historically differentiated from the majority of Filipinos. ICC/IPs shall likewise include people who are regarded as indigenous on account of their descent from the populations which inhabited the country, at the time of conquest or colonization, or at the time of inroads of non-indigenous religions and cultures or the establishment of the present state of boundaries, who retain some or all their own social, economic, and political institutions, but who may have been displaced from their traditional domains or who may have resettled outside their ancestral domains.

107. Informal Settlers (also known as informal dwellers or squatters) are persons who have no legal title, tax declaration that can be perfected into a title, or those who are not covered by customary laws (e.g., possessory rights, usufruct) or other acceptable proof of ownership. Informal settlers who are not professional squatters are eligible for compensation for lost assets and incomes, including entitlements.

108. Local Government Unit (LGU) could be city, municipality or province.

109. Land Acquisition means the process whereby a person alienates all or part of the land he/she owns or possesses to ownership and possession of other parties including the Government for public purpose. When compelled by Government it is called expropriation.

110. Marginally Affected land or structure means less than 20 percent of the land or structure is affected and where the remaining unaffected portion is still viable for continued use.

111. Professional Squatters, the term applied to persons who have previously been awarded home lots or housing units by the Government but who sold, leased or transferred the same to settle illegally in the same place or in another urban area, and non-bona fide occupants and intruders of lands reserved for socialized housing. This definition excludes individuals or groups that simply rent land and housing from professional squatters or squatting syndicates.

112. Project refers to the World Bank-funded Metro Manila Wastewater Management Project (MWMP) implemented by Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. (MWSI) with LBP of the Philippines (LBP) as the project executing agency.

113. Rehabilitation Support means additional assistance given to DPs whose source of income is severely impacted by the loss of productive assets, incomes, employment or

sources of living, thereby requiring them to engage in some other income-earning activities. Rehabilitation support is intended to supplement payment of compensation and financial assistance as provided in 2.b. and 2.e. for acquired assets in order to achieve full restoration of living standards and quality of life. The specific rehabilitation support to be given may be in the form of special skills training, project-related employment, micro-credit, and other self-help socio-economic measures.

114. Relocation means the physical shifting of DPs from their pre-project place to a new place of residence.

115. Replacement Cost is the amount needed to replace an asset without deduction for the costs of transaction. The computation of replacement cost is the value determined by an independent appraiser hired by the Project Proponent or by a court of law as compensation for:

• agricultural lands, fishponds and fish pens based on productive value or residential land based on market value (for properties with similar location attributes);

• houses and other related structures based on current market prices of materials and labor without depreciation and deductions for salvaged building materials;

• crops based on current market value;

• tree and other perennials based on the estimates of the DENR or those of the independent appraiser’s;

• other fixed assets such as mosques, churches, burial grounds, community wells, barangay halls and health centers based on replacement cost or cost of mitigating measures; and

• businesses based on opportunity loss and business current market prices of materials and labor without depreciation and deductions of salvaged materials.

116. Resettlement Action Plan / Resettlement Plan (RP) refers to all measures to be taken by the Sub-project Proponent in consultation with the community or the DPs and approved by the Lender, to mitigate any adverse social and economic impacts that are direct consequences of the acquisition of assets; and the provision of other entitlements, income restoration assistance, and relocation, as needed.

117. Rental Allowance is cash assistance given to house tenants of affected structures who will have to find a new place on account of the project, for the period between project site clearing and transfer to their new home but not exceeding a period of three (3) months.

118. Severely Affected Land / Structure means 20 percent or more of the land or structure is affected or when less than 20 percent is affected, the remaining portion is no longer viable for use.

119. Squatting Syndicates as defined by RA 7279 refers to groups of persons who are engaged in the business of squatter housing for profit or gain.

120. Sub-project refers to the project that is implemented by MWCI and MWSI and funded by sub-loan from the MWMP loan facility implemented by the LBP.

121. Sub-project Proponent refers to MWCI and MWSI.

13.0 INSTITUTIONAL AND LEGAL FRAMEWORK

13.1. Institutional Framework

122. The key players and their roles and responsibilities in resettlement planning, implementation and monitoring are presented below. Section 15.0 in this report, presents the roles and responsibilities of other participants in the resettlement planning, implementation, and monitoring process.

13.1.1. LBP of the Philippines (LBP)

123. Through its CBD-I, assisted by the Project Management Office (PMO), LBP will review all Sub-project RPs, whether full or abbreviated, to check its compliance with the agreed Resettlement Policy Framework (RPF).

13.1.2. Sub-project Proponent

124. The Sub-project Proponent could either be MWCI or MWSI. Through its Project Implementation Unit (PIU), the Sub-project Proponent will be responsible for the overall planning, implementation, coordination and monitoring and evaluation of land acquisition and resettlement activities under the Sub-project, as follows:

• The PIU will ensure that RPs are prepared, implemented and monitored and evaluated in accordance with the agreed RPF;

• The Sub-project Proponent will set up a Resettlement Implementation Committee (RIC) for the implementation of the RP. The specific responsibilities of the RIC include:

- assisting the PIU in validating the list of DPs and inventory of affected assets and in finalizing the compensation and other entitlements due to the DPs;

- assisting in the conduct of public information campaign and consultation and help to ensure the participation of the public, especially the DPs;

- assist the PIU in the payment of compensation and other entitlements to DPs;

- receiving complaints and grievances from DPs and other stakeholders and acting on them accordingly;

- maintaining a record of all public meetings, complaints, and actions taken to address complaints and grievances; and

- in coordination with concerned government authorities, assisting in the enforcement of laws/ordinances regarding encroachment into the Sub-project site or its right-of-way (ROW).

• The PIU Head will designate a staff to work closely with the RIC. The Sub-project Proponent may engage the services of a Consultant, a Resettlement Specialist, to provide technical support to the PIU on resettlement planning.

• The Sub-project Proponent will ensure that sufficient budget and resources are provided to the PIU for resettlement planning and implementation.

• The Sub-project Proponent will be responsible for encouraging the active participation of stakeholders, particularly the displaced and host communities, in resettlement planning, implementation and monitoring and evaluation.

13.1.3. Local Government Units (LGUs)

125. The LGUs will:

• assist the Sub-project Proponents in locating and acquiring land needed for the construction of wastewater treatment facilities;

• assist the Sub-project Proponents in providing and/or negotiating ROW for wastewater facilities and networks;

• beamember of the Resettlement Implementation Committee (RIC);

• assist in the conduct of public information campaign and consultation and help to ensure the participation of the public, especially the DPs;

• be a member of the Grievance and Complaints Committee and will assits in receiving complaints and grievances from DPs and other stakeholders and act on them accordingly;

• in cooperation with the Sub-project Proponents and other concerned government authorities, assist in the enforcement of laws/ordinances regarding encroachment into the subproject site or its ROW; and

• encourage the active participation of stakeholders, particularly the displaced and host communities, in resettlement planning, implementation and monitoring and evaluation.

13.1.4. External Monitoring Agency (EMA)

126. The EMA, engaged by the Sub-project Proponent, will monitor the effectiveness of resettlement activities in all stages of the sub-project. Special efforts will be made to ensure good community relationships, for better reception of the Sub-project and for a clear understanding of its objectives. The EMA will submit periodic reports on the implementation process and make recommendations regarding identified issues and concerns.

13.1.5. Affected Communities

127. It is also the responsibility of affected communities, particularly the DPs and host community/ies, to participate in consultations and in resettlement planning, implementation and monitoring and evaluation.

13.1.6. Resettlement Implementation Committee (RIC)

128. The RIC will be composed of:

• PIU, particularly the Resettlement Specialist of the Sub-project Proponent;

• Representative of the Barangay/Municipality/City of affected communities (DP and host);

• Representative of the DPs in each affected barangay (to be elected by simple majority by DPs present in a meeting to be held for the purpose);

• If applicable, leader/s or elder/s of each affected IP group; and

• Representative of a non-government organization (NGO) or people’s organization (PO) actively operating in the Sub-project area (to be elected by simple majority by DPs in a meeting to be held for the purpose).

129. The RIC will be chaired by the designated representative of the PIU and will meet regularly to record milestones and update the members on the progress of the RP.

130. The RIC will have to work closely with the Presidential Commission on the Urban Poor (PCUP), as the government’s clearing house of resettlement for the urban poor to ensure that the RP is properly implemented. They can also assist the PIU in accomplishing the requirements for the Certificate of Compliance to be issued by the PCUP before any clearing operation takes place.

13.1.7. Valuation Committee (VC)

131. The Valuation Committee will determine the value/price of the affected asset/property that need to be replaced or compensated. The VC will draft a valuation formula and will conduct a consultation meeting to present the valuation formula to displaced/affected persons, seeking their feedback as to whether this compensation is fair and acceptable.

132. The VC will work closely with the survey team who will conduct the inventory of household losses of assets and properties. The result of the inventory of losses will be the basis for compensation and replacement of household assets, properties and livelihood.

13.1.8. Complaints and Grievance Committee (CGC)

133. The CGC will receive and address complaints and grievances raised or expressed by affected persons and/or displaced persons arising from the resettlement. A grievance procedure will be followed as recommended in Section 17 of this RPF.

134. The CGC will be composed of representatives from the Sub-project Proponent/PIU, local government executive or council, representative from the affected community/displaced persons and representative from the RIC.

13.2. Legal Framework

13.2.1. Government of the Philippines (GOP) Regulations

135. This framework is anchored on the principle derived from the Bills of Rights of the Constitution of the Republic of the Philippines, which states:

• In Article III, Section 1, “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.”

• In Article III, Section 9, “Private property shall not be taken for public use without

just compensation.” 136. This RPF, hereinafter referred to as Framework, shares the same concern for due process and the right to just compensation for everybody. The guiding principles of this Framework are: that adverse impacts by a Sub-project must be avoided or minimized, with the appropriate resettlement measures; and that DPs are given the opportunity to share project benefits with the rest of the population.

137. Other relevant GOP laws and orders pertaining to land acquisition and compensation shall be adopted and observed by the Sub-project Proponent. (See Annex 2C.)

13.2.2. World Bank Policies

138. Operational Policy (OP) 4.12, December 2001, on Involuntary Resettlement, provides the guidelines for the resettlement of project-affected population to assist DPs in their efforts to improve their incomes and living standards, or at least restore them to pre-displacement levels. This policy is triggered when there is involuntary taking of land and other assets, or when involuntary restriction of access to legally designated and protected areas results in adverse impact on the livelihoods of the displaced person. Only direct economic and social impacts resulting from “taking of land” are covered.

139. World Bank’s OP 4.10, which instructs Bank-supported projects to give protection to indigenous peoples with regards to mitigating possible adverse impacts of investments and requires the development of an Indigenous Peoples Action Plan should these projects have potential adverse impacts on indigenous populations or positively enhance benefits the IPs may gain from the project.

140. World Bank’s OP 8.00 Rapid Response to Crises and Emergencies provides that: in the event that an actual or imminent natural or man-made crises or disaster happens that would cause major adverse economic and social impacts, the Bank may provide rapid responses to a Borrower’s request for urgent assistance. This assistance may include activities that support rapid response and relief to recovery operations

13.2.3. GOP and WB Policies, and Framework for MWMP

141. Where there is a discrepancy between the resettlement and compensation standards of the existing laws in the Philippines and the standards of the WB, the Sub-project Proponent will comply with whichever is the higher standard.

142. For lands to be acquired for sub projects, these should undergo due diligence to determine when and how land was acquired, determine who was living and currently lives there and further determine if there are any risks or issues associated with the land at present. Generally, there will be two levels of due diligence which should be assessed:

• Examine relevant information going back to two years before the date of the first identification mission, which took place starting 23 September 2009, to ensure that the acquisition and resettlement were in compliance with the Philippine national laws and regulations and that there are no legacy issues or no pending legal disputes or liabilities; and

• From the date of the first identification mission, land acquisition must comply with WB OP 4.12.

14.0 OPERATIONAL GUIDELINES

14.1. Screening

143. The MWMP is a program type project through a Financial Intermediary. Because of this, the social impacts would only be identified when specific sub-projects are identified by MWCI and MWSI. This may involve temporary or permanent displacement of people and assets and adverse or positive effects on local communities including the IPs. It also includes displacement of local communities directly contributing to the objectives of the project, in order to allow the project to be implemented.

14.2. Review of Resettlement Plans

144. The WB will review this MWMP Resettlement Policy Framework (RPF) to ensure its compliance with OP 4.12 and OP 4.10. It will agree with the LBP on the adoption of the RPF as the set of guidelines on social safeguards for the Project. The WB will review all Full RPs (see Annex 2D) and the first three Abbreviated RPs (see Annex 2E) prepared under the Project.

145. Review will commence with the enumeration by Program Management Department II, with assistance from the PMO, of the extent of land acquisition, project-affected population and asset loss/es that may result from a sub-project’s implementation, using a checklist.

146. To facilitate review, the Sub-Borrowers will complete the checklist (see Table 5 below). Reviewers will verify the information provided by Sub-Borrowers from the submitted sub-project documents aside from sub-project site visits.

Table 5: Checklist of Project-Affected Persons and Assets

Social Impact Yes No Specify Details

Involuntary Resettlement a) Land acquisition necessary Size and use of land prior to

construction of project b) HHs/Persons will be displaced Total no. of HHs/persons c) Presence of informal settlers Total no. of informal HHs/settlers d) Legal structures acquired/

damaged No., size & built of structures

e) Informal structures beings removed

No., size & built of structures classified according to use: dwelling, shops/stores, livestock production, etc

f) People losing means of livelihood

Total no. of HHs, persons

g) Basic services will be inaccessible

Type/s of basic services (water, power connection, schools, multi-purpose centers, religious center, etc

h) Crops/trees being damaged/lost

No. and type of crops/trees

i) Tenants/lessees losing crops/ trees

No. of tenants, HHs losing what type, how many crops/trees?

j) Informal settlers losing crops/ trees

Informal settlers losing what type, how many crops/trees?

k) Indigenous peoples to be displaced

Total no. of indigenous HHs/ persons to be displaced

Indigenous Peoples l) Ancestral domain affected Size of the domain m) name affected ethnic groups

Name of affected group(s) and number of people affected classified by type of effect

n) Cultural property affected No., size, and type of cultural property

147. Social safeguards requirements will be triggered when any one of the above social impacts is positively identified/confirmed. Based on the information derived from the checklist, the following are validated:

• Resettlement category of the sub-project (full or abbreviated);

• Prepared/submitted resettlement instrument for the social category of the sub-project (see Annex 2F); and

• Conformity of the prepared social safeguard documents to the provisions of the MWMP Resettlement and Compensation Framework as presented in Table 5 (above). Also see Annex 2G.

14.3. Mitigation and Compensation

148. The following guidelines will be applied to mitigate and compensate the effects of involuntary resettlement:

• Only those DPs found to be residing in, doing business in, or cultivating land, or having rights over resources within the project area as of cut-off date (e.g., date of start of census surveys) are eligible for compensation for lost assets (i.e., land, structure and other fixed assets) and for other assistance. DPs will be compensated for affected land, based on their tenure status (e.g. legitimate owner, lessee, etc.). Proof of ownership shall include full title, tax declaration of settlers in public land, possessory rights or usufruct, ancestral land claims, among others. However, in cases where a tax declaration over assets that are inalienable or those that cannot be titled as prescribed by law (e.g., river easement, forest reserve) is the only proof of ownership, only structures and other improvements found therein should be compensated.

• The Sub-project Proponent shall compensate the DPs for land, structures and other fixed assets at “replacement cost” as defined in Section 12.

• DPs losing all of their lands and structures (e.g., farmland, house), or incurring partial loss but where the remaining assets and properties are determined by competent authorities as not viable anymore for continued use will be paid full compensation for the entire asset at replacement cost. The compensation for the entire asset at replacement cost may be given in cash or in-kind. The Sub-project Proponent will assume ownership of the said asset upon payment of full compensation thereof.

• In the case of DPs whose assets are “marginally affected” as defined in Section 12, compensation for the affected assets will be paid in cash.

• Informal settlers who are affected by the project and who are not “professional squatters”, as defined in Section 12, are entitled to compensation at replacement cost for affected structures and other losses but not for land.

• Swap for “severely affected land” as defined in Section 12 will be in the form of land of equivalent productive value and/or characteristics at a location acceptable to the DPs, or if replacement land is not available, cash representing the current replacement value of the land. Replacement of residential and agricultural lands will be as close as possible to the land that was lost. All replacement lands for residence, commerce and agriculture will be provided with secured tenure status.

• In addition to compensation for crops or property acquired or damaged by the Sub-project, the Sub-project Proponent will provide the following resettlement assistance to eligible DPs:

� “Financial assistance” to tenants/settlers/occupants as provided in Section 12.

� Rental allowance for house tenants of affected main structures who will have to find a new place on account of the project, equivalent to the period between project site clearing and transfer to their new home but not to exceed a period of three (3) months.

� Transportation assistance (in cash or in kind, depending on the mutual agreement of the DP and the Sub-project Proponent) to DPs who are relocating, including displaced shanty dwellers in urban areas who opts to go back to their places of origin (e.g., province) or to shift to government relocation sites.

• Granting of rehabilitation support in the form of special skills training, project-related employment, micro-credit or other self-help socio-economic support to DPs who are severely affected due to the loss of productive assets and/or their primary source of income and which will require them to engage in some other income-earning activities. If needed, the Sub-project Proponent will coordinate closely with concerned government agencies that have the mandate and the expertise to undertake the needed rehabilitation assistance.

• Rehabilitation support will also be granted to severely affected vulnerable groups such indigenous groups, single parent households, the handicapped, the elderly, etc. who have the least capacity to cope with the adverse social and economic impacts of development projects.

• For married couples, payment of compensation and other entitlements (i.e., financial assistance and rehabilitation support) will be given in the names of both husband and wife.

• Where relocation is considered necessary, the lot owner of the proposed relocation site will also be entitled to compensation for his/her land, and depending on his/her choice, the compensation may be in cash or in the form of replacement land, of the same value, within or outside the relocation site.

• The Sub-project Proponent shall provide the relocation site for residential or commercial purposes with such basic services as electricity, water, drainage, sewer system, road system, etc.

• Plans for the acquisition of land and other assets will be carried out in consultation with the DPs who will receive prior information on the compensation, relocation, and other assistance available to them.

• Any acquisition of, or restriction on access to, resources owned or managed by DPs as a common property (e.g. communal forest, communal farm, or communal fishing ground) will be mitigated to ensure access of those DPs to equivalent resources on a continuing basis, where feasible, or other alternative measures to be determined in consultation with the DPs.

• Resettlement programs will include adequate institutional arrangements to ensure effective and timely design, planning, consultation and implementation of compensation and resettlement. The Sub-project Proponent will ensure effective coordination with relevant agencies for the RP preparation and implementation.

• The resettlement transition period will be minimized and the acquisition of assets, compensation, resettlement and rehabilitation for a segment/section or phase (except where long-term rehabilitation measures such as vocational training recommended) will be completed at least one (1) month prior to the initiation of the preparation for construction work under the respective segment/section or phase thereof.

149. Entitlements and compensation for the types of loss shall be guided by the Compensation Table in this Framework (see Annex 2H).

• Technically, all informal settlers found to be at the sub-project site at the time of the census will be entitled to a specific compensation depending on the laws and standards being enforced at the beginning of the sub-project. All possible means to alleviate the DPs will be exhausted to restore if not improve their level of living to the pre-resettlement standard.

• For lands to be acquired for sub-projects, these should undergo due diligence to determine when and how the land was acquired, determine who was living and currently lives there and further determine if there are any risks and/or issues associated with the land at present. There will be 2 levels of due diligence:

- Two years before date of the first identification mission, 23 September 2009, to ensure that the acquisition and resettlement were in compliance with the Philippine national laws and regulations and that there are no legacy issues or no pending legal disputes or liabilities; or

- From the date of the first identification mission, land acquisition must comply with WB OP 4.12

14.4. Modes of Acquiring Private Assets

150. Private assets (e.g., land, structures and other improvements) will be acquired for the Sub-project through:

• Donation and/or grant of ROW • Negotiated purchase, or • Expropriation • Usufruct • Lease Agreement

151. In the case of donations, meetings held regarding land donation/s will be documented. For donated land/s, documentation of donation must be signed by all legal owners, must note the total land areas from which portion needed by Sub-project is taken and must state the legal tenability of the donation (e.g., no lien, occupants in affected portion). An assessment report on the impact of the donation on the donor’s economic viability will also be needed.

152. In the case of negotiated purchase, the Sub-project Proponent will offer as the purchase price an amount equal to the replacement cost of the assets, as determined by an independent appraiser using internationally accepted procedures. See Annex 2J.

153. The Sub-project Proponent will make the offer in writing and give the property owner 15 days within which to accept the amount offered as payment for his/her property. If the property owner agrees, he or she will issue to the Sub-project Proponent a written permit to enter the property. A contract of sale will be subsequently executed between the property owner and the Sub-project Proponent.

154. If negotiations fail, the Sub-project Proponent shall initiate expropriation proceedings (through the concerned LGU if Sub-project Proponent is not the LGU). Upon filing of the complaint, and after due notice to the defendant/property owner, the concerned LGU shall immediately deposit with the court or a court-appointed depository the amount equivalent to the sum of: (1) one hundred percent (100%) of the value of the condemned property based on the current BIR zonal valuation; and (2) an amount equal to the replacement cost of the improvements and/or structures. The Sub-project Proponent should then apply for a Writ of Possession to enable Sub-project construction.

155. If the property owner contests the compensation payment, the Court will determine the just compensation to be paid to the owner within sixty (60) days from the date of the filing of the expropriation case. When the decision of the Court becomes final, the Sub-project Proponent will pay the owner the difference between the amount already paid and the just compensation determined by the Court (see Implementing Rules and Regulation, RA 8974, Section 4). The DP will receive the additional payment within one (1) month following the decision of the court.

156. The Sub-project Proponent may seek the imposition of an Easement of Right-of-Way (ROW) provided for under the Philippine Civil Code. In such cases, a ROW easement agreement will be executed by the property owner and the Sub-project Proponent, whereby the former will grant the latter the right to use the affected portion of the lot, as ROW, but the owner retains ownership of the said portion of the lot. In these cases, the Sub-project Proponent may pay the owner the value of the affected portion of the lot based on an independent appraiser carried out according to internationally accepted norms. In addition, the Sub-project Proponent shall compensate the property owner at replacement cost for any improvements and/or structures on the land affected by the ROW. The Sub-project Proponent will enter the easement area after the provision of the full payment for the easement to the property owner. The ROW easement agreement will be immediately registered with the Registry of Deeds.

157. The Sub-project Proponent may also acquire a property through usufruct. The property owner retains the naked ownership of the land, while the Sub-project Proponent enjoys the benefit of the use of land. The Sub-project Proponent and the property owner will execute a usufruct agreement. The agreement will cover the rights and responsibilities of the two parties, including the duration of the usufruct which should not be lower than the project life. Project life for MWMP is seven years.

158. The Sub-project Proponent may also acquire lands through lease agreements with the rightful property owner. The Sub-project Proponent and the property owner will execute a Lease Contract. The contract will cover the rights and responsibilities of the two parties, including the duration of the lease which should not be lower than the project life, which is seven years

159. All land transaction should be registered with the Registry of Deeds for annotation in the title of subject property.

15.0 APPLICATION OF THE PARTICIPATORY PROCESS

160. The participatory process shall commence as early as during the Sub-project preparation stage and shall continue through to post-implementation evaluation. Key stakeholders will have valuable roles to play in each of the activities in the process (as shown in Table 6, below).

Table 6: Roles and Responsibilities

Sub-project Stage

Participatory Activities

Participants Responsible Office/Institution

Sub-project Preparation Pre-Feasibility Study

Preliminary meeting within LGU for the overview of the proposed Sub-project

Local Chief Executive and Council, PIU-attached units, affected barangay captains

PIU &/or its Consultant, a Resettlement Specialist

General orientation-meeting, barangay level, preparatory to conduct of technical, social & environmental studies

PIU, concerned barangay officials, DPs, affected communities

PIU &/or its RS

Conduct of Social Impact Assessment

PIU, DPs, affected communities

PIU &/or its RS

Feasibility Study RP Preparation, census & socio-eco survey

Community heads, concerned barangay officials, DPs

PIU &/or its RS, Community heads

LGU draft RP orientation

LCE, LGU council, PIU-attached units, affected barangay captains

PIU &/or its RS

Community consultation on draft RP

Community heads, DPs, affected communities

Affected barangay officials, PIU &/or its RS

Finalization of RP and Technical Design

RP finalization Community heads PIU &/or its RS

Final RP orientation for LGUs, DPs & affected communities

LCE, LGU council, PIU-attached units including other support agencies

PIU &/or its RS

like NHA, affected barangay officials, community heads, DPs and affected communities

Implementation Setting up of RIC LGU council,

affected barangay officials, community heads, DPs, affected communities, UPAO head &/or NCIP commissioners, other support agencies like NHA,

LGU council Chairman (Vice-Mayor) or his representative, PIU &/or its RS

‘ Implementation of RP

PIU &/or its RS & RIC

Internal monitoring of RP implementation

RIC, PIU, community heads, DPs

PIU &/or its RS, LGUs and Community Heads

External Monitoring EMA EMA Post-Implementation

Evaluation of RP, processes and methodologies

RIC, DP reps, EMA, PIU, reps of relevant NGO & PO

PIU &/or its RS & EMA

15.1. Prefeasibility

15.1.1. Preliminary Meeting with LGU

161. The PIU will conduct a preliminary meeting with the local chief executive and the council about the sub-project and its components to:

• explain the general concept of the subproject;

• discuss and explain the requirements of the subproject and its perceived impacts;

• present tentative schedule of activities;

• create awareness and appreciation about the subproject;

• identify various subproject stakeholders;

• present the MWMP RPF; and

• discuss the compositions of the Resettlement Implementation Committee; Grievance Committee and Valuation Committee.

15.1.2. General Orientation of the Community

162. Before undertaking the survey in the community, the PIU will conduct a thorough barangay meeting to orient and ensure that the community understands the nature and extent of the proposed subproject, as well as the rights and entitlements of those who may be affected or displaced as a result of the subproject. Awareness of the sub-project will hasten the data-gathering process and ensure quality of data.

163. The RPF will also be discussed for the communities to have an appreciation of the processes and procedures. The RPF will be publicly posted/disclosed and will be made available to the community if they want to discuss it further with the community members.

164. Community orientation will be facilitated by the barangay officials and assisted by the PIU to ensure correctness of information to be relayed to each member of the community.

15.1.3. Social Assessment

165. The PIU will conduct as assessment of the positive and negative impacts of the sub-project especially to the affected community, identifying all types of possible risks involved. Often, sub-projects though initially conceived as beneficial may in turn have adverse socio-economic, environmental and cultural impacts which are easily overlooked. The assessment will be carried out with the participation of various stakeholders (through consultation, focus group discussions and key informant interviews) particularly those that will be adversely affected by the sub-project. Where IP settlements/communities are affected, assessment activities should be coordinated with the National Commission on Indigenous Peoples (NCIP) prior to field investigations. Results of such investigation will form part of the assessment.

15.2. Feasibility

15.2.1. Preparation of Draft Resettlement Plan

166. Based on the results of the Social Assessment, a full-blown socio-economic survey of the DPs, including an inventory and valuation of affected assets, will be conducted to arrive at an appropriate Resettlement Plan. The RP should include the amounts and the process to be applied in the payment of compensation to the DPs.

167. The RPF applies to all resettlement impacts, regardless of the number of people involved or the level of severity experienced. However, the level of details contained in the RP will vary according to the target group, complexity, scale and severity of resettlement. A full RP will be required where 200 or more persons are affected. If less than 200 persons are affected, an abbreviated RP may be prepared. (See Annexes 2D and 2E )

15.2.2. Presentation of Draft RP

168. Upon completion of the draft RP, the PIU will present it to the local chief executive and council, heads of the attached units to the PIU and barangay leaders with a view towards achieving consensus on the following:

• resettlement program;

• relocation sites;

• roles and responsibilities in the RP implementation; and

• identifying members of the RIC.

15.2.3. Community Consultation

169. Community consultation should be conducted continuously until an RP acceptable to the DPs is arrived at. All aspects of the sub-project should be known to the affected community and if necessary, leaflets and brochures be distributed for greater information coverage.

170. Affected communities will also be informed on the mechanics and procedures for consultation, grievance redress mechanism and the overall resettlement program.

171. For indigenous groups, the NCIP will be tapped to lead the consultations and to have a more in-depth analysis of the socio-cultural implications of the subproject. All proceedings and consultations will be recorded and form part of the RP.

15.3. Finalization of the Resettlement Plan

172. All suggestions and relevant information introduced by the DPs should be included in the RP. The PIU will again meet the local chief executive and council, heads of PIU attached units, barangay captains of affected barangays and selected members of the community -- particularly People’s Organization (PO) leaders, purok leaders and/or other recognized leaders representing the DPs -- to orient them with the results of all the surveys and assessments conducted to ensure that the sub-project will proceed as agreed upon.

173. A copy of the final RP will be provided to the affected barangay/s for reference purposes to ensure all procedures and agreements are included and met.

15.4. Project Implementation

174. Participation. Whenever possible, DPs will be consulted and involved in the implementation of various activities in the sub-project.

15.5. Monitoring

175. The PIU, assisted by the RIC, will enlist the participation of the DPs in the internal monitoring of the implementation of the RP. Representation of the DPs in the monitoring

of the implementation will provide a more accurate reading of the affected community’s feelings and reactions. The internal monitoring will focus on the following:

• Ensuring that the RP is implemented as designed and approved; and

• verifying if funds for implementation are provided in a timely manner and in amounts sufficient for their purposes and that the funds are used in accordance with the provisions of the RP.

176. In addition to the internal monitoring, an independent External Monitoring Agency (EMA) will be hired by the Sub-project Proponent to carry out a separate monitoring and evaluation (M&E) program of the RP. The EMA may be an NGO, an academic research institution, an independent consulting firm with qualified and experienced staff or a combination of these. Criteria for selecting the appropriate agency shall be based on competence, experience and general advocacy of the group.

177. For MWMP, both Sub-project Proponents (MWIC and MWSI) can consider hiring just one EMA to undertake the external monitoring for all of their sub-projects (see Annex 2I).

15.6. Post Project Implementation

15.6.1. Evaluation of the RP Implementation

178. Upon completion of the RP implementation, a body composed of representatives from the PIU, the RIC chairperson, DP representatives and representatives from relevant NGOs and POs will be formed to evaluate the processes and methodologies of the RP from preparation to implementation. Areas for improvement and best practices will be identified for future use.

179. The EMA will give its independent evaluation of the RP and its implementation. All recommendations and comments will be documented and archived for future reference.

16.0 DISCLOSURE AND PUBLIC CONSULTATION

16.1. Key Principles

180. LBP, MWCI, MWSI and the LGUs are responsible for engaging with affected communities through disclosure of information, consultation, and informed participation in a manner commensurate with the risks to and impacts on the affected communities as early as possible in the assessment process and on an ongoing basis throughout the life of the project.

181. Local disclosure must be conducted in a culturally appropriate manner and provide timely and relevant information to affected communities.

182. The final objective of local disclosure is to ensure that directly affected communities, if any, are aware of the purpose, nature and scale of the project, the duration of the proposed activities and of any risks to and potential impacts on such

communities, and that they are given the opportunity to provide input into the manner in which these impacts and risks are managed.

183. The LBP, MWCI, MWSI and the LGUs are responsible for determining and documenting whether the sub-project client has met its disclosure obligations and if all required ongoing disclosure mechanisms and updates to the community are maintained throughout the life of the project.

16.2. Target Population

184. Local disclosure of information should be targeted, at a minimum, to the directly affected communities (including project-related workforce, where applicable).

185. If the specific location of the project will not be known until a later project stage, the MWSI/MWCI will disclose (at a minimum) relevant project information to appropriate authorities and organizations.

16.3. Timing

186. Timing of local disclosure will vary depending on the type of assessment involved, the level of risks and impacts and the stage of the project’s development or operation.

187. Below are some key minimum requirements that should be taken into account when determining timing of local disclosure:

• In all cases, if local disclosure has not already taken place as part of MWSI/MWCI’s existing community engagement activities at the time of involvement, MWSI/MWCI should commence local disclosure as early as possible. It is desirable for the concessionaires to commence implementing the local disclosure process before LBP’s institutional disclosure; however, this is not mandatory as local disclosure requirements vary from project to project. At a minimum, the concessionaires should commence local disclosure prior to the commencement of construction or other implementation activities that could generate direct impacts, where applicable.

• In cases where construction or other implementation activities that generated impacts on local communities have already commenced or if the project is already under operation, at the time of the concessionaire’s involvement and if local disclosure has not already taken place, the concessionaire’s local disclosure process should be defined and its implementation commenced as soon as possible.

16.4. Information Documentation

188. LBP should disclose, in a culturally appropriated manner, relevant information on the purpose, nature and scale of the project, the duration of the proposed project activities, and any risks to and potential impacts on such communities, and the way these impacts and risks will be managed. This information includes any final assessment documents or summary of the assessment process where formal assessment documents do not exist, and including relevant management plans.

189. Where the LBP and concessionaires have already engaged in a consultative process with affected communities, any relevant document should incorporate feedback on issues and concerns raised by the community.

17.0 GRIEVANCE PROCEDURES

190. Accessible grievance mechanisms will be established for the DPs and their communities, and any host communities receiving them. These mechanisms aim to address disputes that may arise from the resettlement.

191. Grievances will be handled through negotiations with the aim of achieving consensus. Complaints will pass through two stages before they may be elevated to a court of law as a last resort. Grievance redress shall have the following levels (see Table 7):

Table 7: Grievance Redress Levels:

Level Redress Steps Level 1 A party lodges complaint or grievance to the RIC. After

proper investigation of facts presented, the RIC will provide a written response within fifteen (15) days upon receipt of the complaint.

Level 2 If the complaint/grievance cannot be resolved at the level of the RIC, the case shall be formally referred to the PIU, which will act/decide on the complaint within fifteen (15) days. The PIU shall inform the RIC on the actions taken and progress of the case.

192. The RIC shall document all grievances, discussions, recommendations and resolutions in writing (even when received verbally) at all grievance levels. See Annex 2K for an example of the Grievance and Commitment Registry and see Annex 2L for contact information regarding the raising of grievances and complaints.

193. DPs will be exempted from all administrative and legal fees incurred pursuant to the grievance redress procedures.

194. Resorting to courts prior to availing themselves of this complaint and grievance process will make the appellant’s action dismissible on the grounds of non-exhaustion of administrative remedies. Details of grievance redress procedures are provided in the Operational Manual for Resettlement Planning and Implementation provided by the PCUP.

18.0 RAPID RESPONSE TO CRISES AND EMERGENCIES

195. For damaged structures and facilities requiring the relocation of affected persons to a new site because the original site has been damaged and has become technically unstable, emergency support actions will be provided, as follows:

• During the 2-4 months of the response period, the project will support emergency actions to assist affected persons while the concessionaires prepare the design strategy to reduce possible social impacts;

• During the second stage, possibly up to one (1) year, emergency resettlement (if needed) measures may be adopted; and

• After the emergency needs are fully addressed, regular involuntary resettlement measures would be implemented. Measures to be formulated should follow participatory process from planning, implementation and monitoring and evaluation of RAP.

19.0 CAPACITY BUILDING AND TRAINING REQUIREMENTS

196. The World Bank will conduct the following training courses for staff of LBP, MWCI, MWSI and the LGUs who are responsible for social safeguards aspects:

• refresher course on WB safeguards policies and their application per project stage; and

• preparation of an Abbreviated RAP and a Full RAP 197. Mentoring using the Project’s first two cases of Abbreviated RAPs and all Full RAPs will be undertaken.

20.0 COSTS AND BUDGETS

198. The Sub-project Proponent will be responsible for providing needed resources for all activities related to the RP planning and implementation, including the operation of the RIC. Each RP will include detailed cost estimates for compensation and relocation of DPS; this will be done, as applicable, with a breakdown by category of DPs, agricultural, residential and business lands; houses, structures and other fixed assets affected; transport assistance when shifting DPs, etc. Cost estimates will make adequate provisions for contingencies.

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ANNEX 1: ENVIRONMENTAL ISSUES

Annex 1A: WB Operational Policy and Bank Procedures on Environmental Assessment

OP 4.01, Annex C - Environmental Management Plan These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

OP 4.01 - Annex CJanuary, 1999

1. A project’s environmental management plan (EMP) consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures.1 Management plans are essential elements of EA reports for Category A projects; for many Category B projects, the EA may result in a management plan only. To prepare a management plan, the Borrower and its EA design team (a) identify the set of responses to potentially adverse impacts; (b) determine requirements for ensuring that those responses are made effectively and in a timely manner; and (c) describe the means for meeting those requirements.2 More specifically, the EMP includes the following components.

Mitigation

2. The EMP identifies feasible and cost-effective measures that may reduce potentially significant adverse environmental impacts to acceptable levels. The plan includes compensatory measures if mitigation measures are not feasible, cost-effective, or sufficient. Specifically, the EMP.

(a) identifies and summarizes all anticipated significant adverse environmental impacts (including those involving indigenous people or involuntary resettlement);

(b) describes--with technical details--each mitigation measure, including the type of impact to which it relates and the conditions under which it is required (e.g., continuously or in the event of contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate;

(c) estimates any potential environmental impacts of these measures; and

(d) provides linkage with any other mitigation plans (e.g., for involuntary resettlement, indigenous peoples, or cultural property) required for the project.

Monitoring

3. Environmental monitoring during project implementation provides information about key environmental aspects of the project, particularly the environmental impacts of the project and the effectiveness of mitigation measures. Such information enables the Borrower and the Bank to evaluate the success of mitigation as part of project supervision, and allows corrective action to be taken when needed. Therefore, the EMP identifies monitoring objectives and specifies the type of monitoring, with linkages to the impacts assessed in the EA report and the mitigation measures described in the EMP. Specifically, the monitoring section of the EMP provides(a) a specific description, and technical details, of monitoring measures, including the parameters to be

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measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions; and (b) monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation.

Capacity Development and Training

4. To support timely and effective implementation of environmental project components and mitigation measures, the EMP draws on the EA’s assessment of the existence, role, and capability of environmental units on site or at the agency and ministry level.3 If necessary, the EMP recommends the establishment or expansion of such units, and the training of staff, to allow implementation of EA recommendations. Specifically, the EMP provides a specific description of institutional arrangements--who is responsible for carrying out the mitigatory and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). To strengthen environmental management capability in the agencies responsible for implementation, most EMPs cover one or more of the following additional topics: (a) technical assistance programs, (b) procurement of equipment andsupplies, and (c) organizational changes.

Implementation Schedule and Cost Estimates

5. For all three aspects (mitigation, monitoring, and capacity development), the EMP provides (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources of funds for implementing the EMP. These figures are also integrated into the total project cost tables.

Integration of EMP with Project

6. The Borrower’s decision to proceed with a project, and the Bank’s decision to support it, are predicated in part on the expectation that the EMP will be executed effectively. Consequently, the Bank expects the plan to be specific in its description of the individual mitigation and monitoring measures and its assignment of institutional responsibilities, and it must be integrated into the project’s overall planning, design, budget, and implementation. Such integration is achieved by establishing the EMP within the project so that the plan will receive funding and supervision along with the other components.

____________

The management plan is sometimes known as an "action plan." The EMP may be presented as two or three separate plans covering mitigation, monitoring, and institutional aspects, depending on borrowing country requirements.

For projects involving rehabilitation, upgrading, expansion, or privatization of existing facilities, remediation of existing environmental problems may be more important than mitigation and monitoring of expected impacts. For such projects, the management plan focuses on cost-effective measures to remediate and manage these problems.

For projects having significant environmental implications, it is particularly important that there be in the implementing ministry or agency an in-house environmental unit with adequate budget and professional staffing strong in expertise relevant to the project (for projects involving dams and reservoirs, see BP 4.01, Annex B).

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Annex 1B: Template for an Environmental Management Plan Checklist

Template for EMP Checklist for Category B projects

General Guidelines for use of EMP checklist:

For Category B sub-projects such as the wastewater treatment facilities financed by MWMP, the following template serves as basis for a more streamlined approach to preparing EMPs. The checklist-type format has been developed to provide examples of good practices and is designed to be user friendly and compatible with safeguard requirements.

The EMP checklist-type format attempts to cover typical core mitigation approaches to civil works contracts with small, localized impacts. It is accepted that this format provides the key elements of an Environmental Management Plan (EMP) or Environmental Management Framework (EMF) to meet World Bank Environmental Assessment requirements under OP 4.01. The intention of this checklist is that it would be applicable as guidelines for the small works contractors and constitute an integral part of bidding documents for contractors carrying out small civil works under Bank-financed projects.

The checklist has four sections:

Part 1 General Project and Site Information - includes a descriptive part that characterizes the project and specifies in terms the institutional and legislative aspects, the technical project content, the potential need for capacity building program and description of the public consultation process. This section could be up to two pages long. Attachments for additional information can be supplemented when needed.

Part 2 Safeguards Information - includes an environmental and social screening checklist, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference is made to the appropriate section in Part 3.

Part 3 Mitigation Measures – the following table, which clearly formulated management and mitigation measures.

Part 4 Monitoring Plan - represents the monitoring plan for activities during project construction and implementation. It retains the same format required for EMPs proposed under normal Bank requirements for Category B projects. It is the intent of this checklist that Part 2 and Part 3 be included into the bidding documents for contractors, priced during the bidding process and diligent implementation supervised during works execution.

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PART 1: GENERAL PROJECT AND SITE INFORMATION

INSTITUTIONAL & ADMINISTRATIVE

Country

Project title

Scope of project and activity

Institutional arrangements

(Name and contacts)

WB

(Project Team Leader)

Project Management Local Counterpart and/or Recipient

Implementation arrangements

(Name and contacts)

Safeguard Supervision Local Counterpart Supervision

Local Inspectorate Supervision

Contactor

SITE DESCRIPTION

Name of site

Describe site location Attachment 1: Site Map [ ]Y [ ] N

Who owns the land?

Description of geographic, physical,

biological, geological, hydrographic and

socio-economic context

Locations and distance for material sourcing, especially aggregates,

water, stones?

LEGISLATION

Identify national & local legislation &

permits that apply to project activity

PUBLIC CONSULTATION Identify when / where

the public consultation process took place

INSTITUTIONAL CAPACITY BUILDING Will there be any

capacity building? [ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program

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PART 2: SAFEGUARDS INFORMATION

DETERMINATION OF POTENTIAL ENVIRONMENTAL /SOCIAL ASPECTS

Activity Status Tr iggered Actions

A. Construction works [] Yes [ ] No See Section A below

B. Rehabilitation activities [ ] Yes [] No See Section A below

C. Individual wastewater treatment system [ ] Yes [] No See Section B below

D. Historic building(s) and districts [ ] Yes [] No ?? See Section C below

E. Acquisition of land1 [ ] Yes [] No See Section D below

F. Hazardousor toxic materials2 [] Yes [ ] No See Section E below

G. Impactson forestsand/or protected areas [ ] Yes [] No See Section F below

H. Handling / management of medical waste [ ] Yes [] No See Section G below

Will thesiteactivityinclude/involveany of thefollowing??

I. Traffic and Pedestrian Safety [] Yes [ ] No See Section G below

1 Land acquisitions includes displacement of people, change of livelihood encroachment on private property this is to land that ispurchased/transferred and affects people who are living and/or squatters and/or operate a business (kiosks) on land that is beingacquired.2 Toxic / hazardous material includes but is not limited to asbestos, toxic paints, noxious solvents, removal of lead paint, etc.

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PART 3: MITIGATION MEASURES

ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

0. GeneralConditions

Notification andWorker Safety

(a) The local construction and environment inspectorates and communities havebeen notified of upcoming activities(b) Thepublic hasbeen notified of theworks through appropriatenotification in themediaand/or at publicly accessiblesites (including the

siteof theworks)(c) All legally required permits have been acquired for construction and/or rehabilitation(d) TheContractor formally agrees that all work will becarried out in asafeand disciplined manner designed to minimize impacts on

neighboring residents and environment.(e) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety

boots)(f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow.

Air Quality (a) During interior demolition debris-chutes shall be used above the first floor(b) Demolition debris shall be kept in controlled area and sprayed with water mist to reduce debris dust(c) During pneumatic drilling/wall destruction dust shall be suppressed by ongoing water spraying and/or installing dust screen enclosures at

site(d) The surrounding environment (side walks, roads) shall be kept free of debris to minimize dust(e) There will be no open burning of construction / waste material at the site(f) There will be no excessive idling of construction vehicles at sites

Noise (a) Construction noise will be limited to restricted times agreed to in the permit(b) During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and

equipment placed as far away from residential areas as possibleWater Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to prevent sediment

from moving off site and causing excessive turbidity in nearby streams and rivers.

A. GeneralConstructionActivities

Wastemanagement

(a) Waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition and constructionactivities.

(b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sortingand stored in appropriate containers.

(c) Construction waste will be collected and disposed properly by licensed collectors(d) The records of waste disposal will be maintained as proof for proper management as designed.(e) Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos)

B. Individualwastewatertreatmentsystem

Water Quality (a) The approach to handling sanitary wastes and wastewater from building sites (installation or reconstruction) must be approved by thelocal authorities

(b) Before being discharged into receiving waters, effluents from individual wastewater systems must be treated in order to meet the minimalquality criteria set out by national guidelines on effluent quality and wastewater treatment

(c) Monitoring of new wastewater systems (before/after) will be carried out(d) Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural surface water bodies.

C. Historicbuilding(s)

Cultural Heritage (a) If the building is a designated historic structure, very close to such a structure, or located in a designated historic district, notification shallbe made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with localand national legislation.

(b) It shall be ensured that provisions are put in place so that artifacts or other possible “chance finds” encountered in excavation orconstruction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds.

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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST

D. Acquisitionof land

Land AcquisitionPlan/Framework

(a) If expropriation of land was not expected but is required, or if lossof access to incomeof legal or illegal users of land was not expectedbut may occur, that the Bank’s Task Team Leader shall be immediately consulted.

(b) The approved Land Acquisition Plan/Framework (if required by the project) will be implementedE. ToxicMaterials

Toxic /hazardous waste

management

(a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled with details of composition, propertiesand handling information

(b) The containers of hazardous substances shall be placed in an leak-proof container to prevent spillage and leaching(c) The wastes shall be transported by specially licensed carriers and disposed in a licensed facility.(d) Paints with toxic ingredients or solvents or lead-based paints will not be used

F. Affectedforests,wetlandsand/orprotected areas

Protection (a) All recognized natural habitats, wetlands and protected areas in the immediate vicinity of the activity will not be damaged or exploited,all staff will be strictly prohibited from hunting, foraging, logging or other damaging activities.

(b) A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked andcordoned off with fencing, their root system protected, and any damage to the trees avoided

(c) Adjacent wetlands and streams shall be protected from construction site run-off with appropriate erosion and sediment control feature toinclude by not limited to hay bales and silt fences

(d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas.G Traffic andPedestrianSafety

Direct or indirecthazards to public

traffic andpedestriansbyconstruction

activities

(a) In compliance with national regulations the contractor will insure that the construction site is properly secured and construction relatedtraffic regulated. This includes but is not limited to� Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and the public warned of all potential hazards� Traffic management system and staff training, especially for site access and near-site heavy traffic. Provision of safe passages and

crossings for pedestrians where construction traffic interferes.� Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or times of livestock

movement� Active traffic management by trained and visible staff at the site, if required for safe and convenient passage for the public.� Ensuring safe and continuous access to office facilities, shops and residences during renovation activities, if the buildings stay open

for the public.

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PART 4: MONITORING PLAN

Phase

What

(Is the parameterto be monitored?)

Where

(Is the parameterto be monitored?)

How

(Is the parameterto be monitored?)

When

(Define thefrequency / orcontinuous?)

Why

(Is the parameterbeing

monitored?)

Cost

(if not includedin project budget)

Who

(Is responsiblefor monitoring?)

During activitypreparation

During activityimplementation

During activitysupervision

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ANNEX 2: SOCIAL ISSUES

Annex 2A: Cultural Property and Protection Measures A. WB Policy on Management of Cultural Property (OP 4.11, July 2006)

Cultural resources are important as sources of valuable historical and scientific information, as assets for economic and social development, and as integral parts of a people’s cultural identity and practices. The loss of such resources is irreversible, but fortunately, it is often avoidable

The objective of OP/BP 4.11 on Physical Cultural Resources is to avoid, or mitigate, adverse impacts on cultural resources from development projects that the World Bank finances.

B. Protection of Cultural Property 1. Cultural property include monuments, structures, works of art, or sites of significance points of view, and are defined as sites and structures having archaeological, historical, architectural, or religious significance, and natural sites with cultural values. This includes cemeteries, graveyards and graves. 2. The initial phase of the proposed emergency reconstruction operations pose limited risks of damaging cultural property since subprojects will largely consist of small investments in community infrastructure and income generating activities, reconstruction of existing structures, and minor public works. Further, the list of negative subproject attributes, which would make a subproject ineligible for support (Attachment 1), includes any activity that would adversely impact cultural property. Nevertheless, the following procedures for identification, protection from theft, and treatment of discovered artifacts should be followed and included in standard bidding documents as provided in Attachment 6. Chance Find Procedures 3. Chance find procedures will be used as follows:

(a) Stop the construction activities in the area of the chance find; (b) Delineate the discovered site or area; (c) Secure the site to prevent any damage or loss of removable objects. In

cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over;

(d) Notify the supervisory Engineer who in turn will notify the responsible local authorities and the Ministry of Culture immediately (within 24 hours or less);

(e) Responsible local authorities and the Ministry of Culture would be in charge of protecting and preserving the site before deciding on subsequent

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appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the archeologists of the Ministry of Culture (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values;

(f) Decisions on how to handle the finding shall be taken by the responsible authorities and the Ministry of Culture. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage;

(g) Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the Ministry of Culture; and

(h) Construction work could resume only after permission is given from the responsible local authorities and the Ministry of Culture concerning safeguard of the heritage.

4. These procedures must be referred to as standard provisions in construction contracts, when applicable, and as proposed in section 1.5 of Attachment 6. During project supervision, the Site Engineer shall monitor the above regulations relating to the treatment of any chance find encountered are observed.

5. Relevant findings will be recorded in World Bank Implementation Supervision Reports (ISRs), and Implementation Completion Reports (ICRs) will assess the overall effectiveness of the project’s cultural property mitigation, management, and activities, as appropriate.

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Annex 2B: Safeguards Procedures for Inclusion in the Technical Specifications of Contracts

I. General

1. The Contractor and his employees shall adhere to the mitigation measures set down and take all other measures required by the Engineer to prevent harm, and to minimize the impact of his operations on the environment.

2. The Contractor shall not be permitted to unnecessarily strip clear the right of way. The Contractor shall only clear the minimum width for construction and diversion roads should not be constructed alongside the existing road. In case this is unavoidable, such diversion roads should not create obstructions or disruptions of roadways, passageways, and drainage channels. Provisions to maintain smooth pedestrian and vehicle traffic and drainage flow should be in place to allow at all times accessibility to homes and businesses and avoid water ponding.

3. Remedial actions which cannot be effectively carried out during construction should be carried out on completion of each Section of the road (earthworks, pavement and drainage) and before issuance of the Taking Over Certificate:

(a) these sections should be landscaped and any necessary remedial works should be undertaken without delay, including grassing and reforestation;

(b) water courses should be cleared of debris and drains and culverts checked for

clear flow paths; and

(c) borrow pits should be dressed as fish ponds, or drained and made safe, as agreed with the land owner.

4. The Contractor shall limit construction works to between 6 am and 7 pm if it is to be carried out in or near residential areas.

5. The Contractor shall avoid the use of heavy or noisy equipment in specified areas at night, or in sensitive areas such as near a hospital.

6. To prevent dust pollution during dry periods, the Contractor shall carry out regular watering of earth and gravel haul roads and shall cover material haulage trucks with tarpaulins to prevent spillage. II. Transport

7. The Contractor shall use selected routes to the project site, as agreed with the Engineer, and appropriately sized vehicles suitable to the class of road, and shall restrict loads to prevent damage to roads and bridges used for transportation purposes. The Contractor shall be held responsible for any damage caused to the roads and bridges due

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to the transportation of excessive loads, and shall be required to repair such damage to the approval of the Engineer. 8. The Contractor shall not use any vehicles, either on or off road with grossly excessive, exhaust or noise emissions. In any built up areas, noise mufflers shall be installed and maintained in good condition on all motorized equipment under the control of the Contractor. 9. Adequate traffic control measures shall be maintained by the Contractor throughout the duration of the Contract and such measures shall be subject to prior approval of the Engineer. III. Workforce 10. The Contractor should whenever possible locally recruit the majority of the workforce and shall provide appropriate training as necessary. 11. The Contractor shall install and maintain a temporary septic tank system for any residential labor camp and without causing pollution of nearby watercourses. 12. The Contractor shall establish a method and system for storing and disposing of all solid wastes generated by the labor camp and/or base camp. 13. The Contractor shall not allow the use of fuelwood for cooking or heating in any labor camp or base camp and provide alternate facilities using other fuels.

14. The Contractor shall ensure that site offices, depots, asphalt plants and workshops are located in appropriate areas as approved by the Engineer and not within 500 meters of existing residential settlements and not within 1,000 meters for asphalt plants. 15. The Contractor shall ensure that site offices, depots and particularly storage areas for diesel fuel and bitumen and asphalt plants are not located within 500 meters of watercourses, and are operated so that no pollutants enter watercourses, either overland or through groundwater seepage, especially during periods of rain. This will require lubricants to be recycled and a ditch to be constructed around the area with an approved settling pond/oil trap at the outlet. In case this is unavoidable, the contractor shall ensure that any facility or equipment shall not discharge any waste such as (such as domestic, solid or liquid waste, equipment or vehicle washings, construction debris) or pollute these watercourses with industrial leakages during the preparation or storage of building materials. 16. The contractor shall not use fuelwood as a means of heating during the processing or preparation of any materials forming part of the Works. IV. Quarries and Borrow Pits

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17. Operation of a new borrow area, on land, in a river, or in an existing area, shall be subject to prior approval of the Engineer, and the operation shall cease if so instructed by the Engineer. Borrow pits shall be prohibited where they might interfere with the natural or designed drainage patterns. River locations shall be prohibited if they might undermine or damage the river banks, or carry too much fine material downstream. 18. The Contractor shall ensure that all borrow pits used are left in a trim and tidy condition with stable side slopes, and are drained ensuring that no stagnant water bodies are created which could breed mosquitoes. 19. Rock or gravel taken from a river shall be far enough removed to limit the depth of material removed to one-tenth of the width of the river at any one location, and not to disrupt the river flow, or damage or undermine the river banks. 20. The location of crushing plants shall be subject to the approval of the Engineer, and not be close to environmentally sensitive areas or to existing residential settlements, and shall be operated with approved fitted dust control devices. V. Earthworks 21. Earthworks shall be properly controlled, especially during the rainy season.

22. The Contractor shall maintain stable cut and fill slopes at all times and cause the least possible disturbance to areas outside the prescribed limits of the work.

23. The Contractor shall complete cut and fill operations to final cross-sections at any one location as soon as possible and preferably in one continuous operation to avoid partially completed earthworks, especially during the rainy season.

24. In order to protect any cut or fill slopes from erosion, in accordance with the drawings, cut off drains and toe-drains shall be provided at the top and bottom of slopes and be planted with grass or other plant cover. Cut off drains should be provided above high cuts to minimize water runoff and slope erosion.

25. Any excavated cut or unsuitable material shall be disposed of in designated tipping areas as agreed to by the Engineer.

26. Tips should not be located where they can cause future slides, interfere with agricultural land or any other properties, or cause soil from the dump to be washed into any watercourse. Drains may need to be dug within and around the tips, as directed by the Engineer. VI. Historical and Archeological Sites

27. If the Contractor discovers archeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, the Contractor shall:

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• Stop the construction activities in the area of the chance find. • Delineate the discovered site or area. • Secure the site to prevent any damage or loss of removable objects. In

cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over.

• Notify the supervisory Engineer who in turn will notify the responsible local authorities and the Ministry of Culture immediately (less than 24 hours).

• Contact the responsible local authorities and the Ministry of Culture who would be in charge of protecting and preserving the site before deciding on the proper procedures to be carried out. This would require a preliminary evaluation of the findings to be performed by the archeologists of the Ministry of Culture (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values.

• Ensure that decisions on how to handle the finding be taken by the responsible authorities and the Ministry of Culture. This could include changes in the layout (such as when the finding is an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage.

• Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the Ministry of Culture; and

• Construction work will resume only after authorization is given by the responsible local authorities and the Ministry of Culture concerning the safeguard of the heritage.

VII. Disposal of Construction and Vehicle Waste

28. Debris generated due to the dismantling of the existing structures shall be suitably reused, to the extent feasible, in the proposed construction (e.g. as fill materials for embankments). The disposal of remaining debris shall be carried out only at sites identified and approved by the project engineer. The contractor should ensure that these sites (a) are not located within designated forest areas; (b) do not impact natural drainage courses; and (c) do not impact endangered/rare flora. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas. 29. In the event any debris or silt from the sites is deposited on adjacent land, the Contractor shall immediately remove such, debris or silt and restore the affected area to its original state to the satisfaction of the Supervisor/Engineer.

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30. Bentonite slurry or similar debris generated from pile driving or other construction activities shall be disposed of to avoid overflow into the surface water bodies or form mud puddles in the area. 31. All arrangements for transportation during construction including provision, maintenance, dismantling and clearing debris, where necessary, will be considered incidental to the work and should be planned and implemented by the contractor as approved and directed by the Engineer. 32. Vehicle/machinery and equipment operations, maintenance and refueling shall be carried out to avoid spillage of fuels and lubricants and ground contamination. An ’oil interceptor" will be provided for wash down and refueling areas. Fuel storage shall be located in proper bunded areas. 33. All spills and collected petroleum products shall be disposed of in accordance with standard environmental procedures/guidelines. Fuel storage and refilling areas shall be located at least 300m from all cross drainage structures and important water bodies or as directed by the Engineer.

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Annex 2C: GOP Laws and Orders on Land Acquisition

Law/Order Provisions Executive Order 1035 (1985)

Requires the conduct of: • Feasibility Study • Public Information Campaign • Parcellary survey • Assets inventory Other features include: • Land acquisitioned, based on fair market value to be

negotiated between owner & appraiser • Resettlement / relocation of tenants, farmers & other

occupants • Financial Assistance to displaced tenants, cultural

minorities & settlers equivalent to the average gross harvest for the last 3 years & not less than P 15,000 per ha.

• Disturbance compensation to agricultural lessees equivalent to 5 times the average gross harvest during the last 5 years

• Compensation for improvements on land acquired under CA 141.

Government has power to expropriate in case agreement is not reached

Supreme Court Ruling (1987)

• Defines just compensation as fair & full equivalent for the loss sustained, taking into account improvements, location, capabilities, etc.

• The value given by the appraiser can only serve as a guide for negotiation. The objective is to enable the Sub-Borrowers to replace affected assets at current market price.

DPWH DP 142 (1995) • Aims to avoid unnecessary delays in civil works • Inclusion of parcellary plans and cost estimates for

ROW acquisition in detailed engineering stage. • EO 1035 & MO 65 will still be followed in matters

relating to the acquisition and compensation of private properties

R.A 6389 • Provides for disturbance compensation to agricultural leases equivalent to 4 times the average gross harvest in the last 5 years.

R.A. 7279, Urban Development and Housing

• Provides guidelines for resettlement of persons living in danger areas, e.g. riverbanks, shorelines, &

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Act of 1992 waterways or areas where government infrastructure projects are about to be implemented. Guidelines cover the provision of basic services & facilities in resettlement sites, livelihood support, meaningful participation & adequate social preparation for the affected households, close coordination between sending & host LGUs, grievance redress and related aspects.

• Danger areas as enumerated in Article VII, Section 28 of RA 7279 includes Waterways but not specifically water/pipeline Right-of-Ways (ROW). The 2002 Bignay Incident of Manila Water showed that waterlines are potential danger areas.

• Relocation involving court eviction cases shall be undertaken by the local government, agencies involved (in this case the MWSS) within forty-five (45) days from service of notice of final judgment by the court.

• Informal settlers who built their house on or before the effectivity date (March 28, 1992) are entitled to all benefits and considerations prescribed in the said act. All those exempted or not covered by the said act will be dealt with accordingly (see Section 5.a)

RA 8368 or Anti-Squatting Repeal Act of 1997

• Repealed PD 772 of 1975 which penalized squatting and similar acts

• All pending cases under the provisions of PD 772 are consequently dismissed.

RA 8371 or The Indigenous Peoples Rights Act of 1997

• Protects & recognized rights of indigenous cultural communities on their ancestral lands.

RA 8974 (2000) • Aims at ensuring that owners of real property acquired for NG infrastructure projects are promptly paid just compensation. It also provides for the compensation of affected improvements & structures at replacement cost without depreciation & inclusive of labor costs for reconstruction) & the arrangement of independent appraisers for a more accurate determination of the market values of lands and improvements. Section 5 provides for standards in the determination of the fair market value of land:

• Section 5. Standards for the Assessment for the Value of the Land Subject of Expropriation Proceedings or Negotiated Sale – In order to facilitate the determination just compensation, the court may consider, among other well-established factors, the following relevant standards: i. The classification and use for which the property is

suited;

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ii. The developmental cost for improving the land; iii. The value declared by the owners; iv. The current selling price of similar lands in the

vicinity; v. The reasonable disturbance compensation for the

removal &/or demolition of certain improvements on the land & for the value of improves thereon;

vi. The size, shape or location, tax declaration & zonal valuation of the land;

vii. The price of the land as manifested in the ocular findings, oral as well as documentary evidence presented; and

viii. Such facts & events as to enable the affected property owners to have sufficient funds to acquire similarly-situated land of approximate areas as those required from them by the government, & thereby rehabilitate themselves as early as possible.

Commonwealth Act 141 (CA 141). Public Lands Act (1936)

• Institutes classification & means of administration, expropriation and disposition of alienable lands of the public domain.

• Under Section 112, lands awarded for Free Patent are “subject to a right of right-of-way not exceeding sixty (60) meters in width for public highways, railroads, irrigation ditches, aqueducts, telegraph and telephone lines and similar works as the Government or any public or quasi-public service or enterprise, including mining or forest concessionaires, may reasonably require for carrying on their business, with damages for the improvements only.”

NCIP Administrative Order No. 3, Series of 2002

• Stipulates the processes necessary for securing FPIC from IP communities and EO 132 designating PCUP as clearing house for the conduct of demolition and eviction since both have bearing on actins related to IPs and RP.

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Annex 2D: Elements of a Resettlement Action Plan

The scope and level of detail of the resettlement action plan (RAP) vary with the magnitude and complexity of resettlement. The RAP is based on up-to-date and reliable information about (a) the proposed resettlement and its impacts on the displaced persons and other adversely affected groups, and (b) the legal issues involved in resettlement. The RAP covers the elements below, as relevant. When any element is not relevant to project circumstances, it should be noted in the resettlement plan.

1. Description of the project.

General description of the project and identification of the project area.

2. Potential impacts.

The following are needed:

(a) The project component or activities that give rise to resettlement;

(b) The zone of impact of such component or activities;

(c) The alternatives considered to avoid or minimize resettlement; and

(d) The mechanisms established to minimize resettlement, to the extent possible, during project implementation.

3. Objectives.

The main objectives of the resettlement program.

4. Socioeconomic studies.

The findings of socioeconomic studies to be conducted in the early stages of project preparation and with the involvement of potentially displaced people, including

(a) the results of a census survey covering:

• current occupants of the affected area to establish a basis for the design of the resettlement program and to exclude subsequent inflows of people from eligibility for compensation and resettlement assistance;

• standard characteristics of displaced households, including a description of production systems, labor, and household organization; and baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the displaced population;

• the magnitude of the expected loss—total or partial—of assets, and the extent of displacement, physical or economic;

• information on vulnerable groups or persons as provided for in WB OP 4.12, para. 8, for whom special provisions may have to be made; and

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• provisions to update information on the displaced people’s livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement.

(b) Other studies describing the following:

• land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non-title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the project area;

• the patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the project;

• public infrastructure and social services that will be affected; and

• social and cultural characteristics of displaced communities, including a description of formal and informal institutions (e.g., community organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities.

5. Legal framework.

The findings of an analysis of the legal framework, covering:

• the scope of the power of eminent domain and the nature of compensation associated with it, in terms of both the valuation methodology and the timing of payment;

• the applicable legal and administrative procedures, including a description of the remedies available to displaced persons in the judicial process and the normal timeframe for such procedures, and any available alternative dispute resolution mechanisms that may be relevant to resettlement under the project;

• relevant law (including customary and traditional law) governing land tenure, valuation of assets and losses, compensation, and natural resource usage rights; customary personal law related to displacement; and environmental laws and social welfare legislation;

• laws and regulations relating to the agencies responsible for implementing resettlement activities;

• gaps, if any, between local laws covering eminent domain and resettlement and the Bank’s resettlement policy, and the mechanisms to bridge such gaps; and

• any legal steps necessary to ensure the effective implementation of resettlement activities under the project, including, as appropriate, a process for recognizing claims to legal rights to land—including claims that derive from customary law and traditional usage (see WB OP 4.12, para.15 b).

6. Institutional Framework.

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The findings of an analysis of the institutional framework covering:

• the identification of agencies responsible for resettlement activities and NGOs that may have a role in project implementation;

• an assessment of the institutional capacity of such agencies and NGOs; and

• any steps that are proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation.

7. Eligibility.

Definition of displaced persons and criteria for determining their eligibility for compensation and other resettlement assistance, including relevant cut-off dates.

8. Valuation of and compensation for losses.

The methodology to be used in valuing losses to determine their replacement cost; and a description of the proposed types and levels of compensation under local law and such supplementary measures as are necessary to achieve replacement cost for lost assets.

9. Resettlement measures.

A description of the packages of compensation and other resettlement measures that will assist each category of eligible displaced persons to achieve the objectives of the policy (see WB OP 4.12, para. 6). In addition to being technically and economically feasible, the resettlement packages should be compatible with the cultural preferences of the displaced persons, and prepared in consultation with them.

10. Site selection, site preparation, and relocation.

Alternative relocation sites considered and explanation of those selected, covering:

• institutional and technical arrangements for identifying and preparing relocation sites, whether rural or urban, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources;

• any measures necessary to prevent land speculation or influx of ineligible persons at the selected sites;

• procedures for physical relocation under the project, including timetables for site preparation and transfer; and

• legal arrangements for regularizing tenure and transferring titles to resettlers.

11. Housing, infrastructure, and social services.

Plans to provide (or to finance resettlers’ provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); 2plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities.

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12. Environmental protection and management.

A description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement).

13. Community participation.

Involvement of resettlers and host communities, including:

• description of the strategy for consultation with and participation of resettlers and hosts in the design and implementation of the resettlement activities;

• a summary of the views expressed and how these views were taken into account in preparing the resettlement plan;

• a review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individuals families or as parts of preexisting communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property (e.g. places of worship, pilgrimage centers, cemeteries); and

• institutionalized arrangements by which displaced people can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that such vulnerable groups as indigenous people, ethnic minorities, the landless, and women are adequately represented.

14. Integration with host populations.

Measures to mitigate the impact of resettlement on any host communities, including:

• consultations with host communities and local governments;

• arrangements for prompt tendering of any payment due the hosts for land or other assets provided to resettlers;

• arrangements for addressing any conflict that may arise between resettlers and host communities; and

• any measures necessary to augment services (e.g., education, water, health, and production services) in host communities to make them at least comparable to services available to resettlers.

15. Grievance procedures.

Affordable and accessible procedures for third-party settlement of disputes arising from resettlement; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms.

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16. Organizational responsibilities.

The organizational framework for implementing resettlement, including identification of agencies responsible for delivery of resettlement measures and provision of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies’ capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or resettlers themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate.

17. Implementation schedule.

An implementation schedule covering all resettlement activities from preparation through implementation, including target dates for the achievement of expected benefits to resettlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project.

18. Costs and budget.

Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies.

19. Monitoring and evaluation.

Arrangements for monitoring of resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the displaced persons in the monitoring process; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation.

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Annex 2E: Elements of an Abbreviated Resettlement Action Plan W.B. O.P. 4.12 –ANNEX A

An abbreviated plan covers the following minimum elements: (a) a census survey of displaced persons and valuation of assets;

(b) description of compensation and other resettlement assistance to be provided;

(c) consultations with displaced people about acceptable alternatives; (d) institutional responsibility for implementation and procedures for grievance redress;

(e) arrangements for monitoring and implementation; and

(f) a timetable and budget.

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Annex 2F: Required Social Safeguards Document per Category

Social Category

No. of Displaced HHs/Persons

Required Documents

3 > 200persons / 50 HHs

Adversely affected ancestral domain and indigenous cultural communities

Full Resettlement Plan (Attachment RCF-3 of Annex 4.1.1B) Indigenous Peoples’ Plan

2 1-199 persons / 50 HHs

An ethnic community which has retained its indigenous system or way of life different from that of the mainstream community.

Abbreviated Resettlement Plan (Attachment RCF-4 of Annex 4.1.1B) Indigenous Peoples’ Plan

1 0 None

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Annex 2G: Criteria for Review of Social Aspects

Criteria Means of Verification 1 Consultation and participation of

adversely affected persons - Minutes of Public Consultations - Expression of Support of Stakeholders,

particularly those adversely affected - Survey Report on RAP

Acceptability/Willingness - Free & Prior Informed Consent (FPIC), for DPs

that are IPs 2 Compensation and transition

assistances and rehabilitation programs to be provided according to the provisions of the MWMP Resettlement Policy Framework

Compensation Table with agreement of DPs - Rehabilitation Program/s - Resettlement Implementation Schedule, in

relation to Sub-project Implementation Schedule

3 Resettlement site of adversely affected persons with conditions equal to, or better than that, in existing sites

- Resettlement Site Development Plan & Vicinity Map

- Description of available / accessible basic infrastructure and services in resettlement areas

- Visit to resettlement site/s

4 Implementation in relation to overall Sub-project Implementation Schedule

Vouchers/proofs of payment for Compensation and transfer assistance provided.

- Progress reports on the Comprehensive Resettlement Implementation Schedule within the overall Sub-project Implementation Schedule

5 If applicable, progress on donations of affected lands for sub-project implementation

- Documentation of meeting held regarding land donation/s. Or, if land already donated, documentation of donation/s (note the total land area from which portion needed by Sub-project is taken) and the legal tenability of the donation ( e.g. no occupants in affected portion)

- Assessment report on the impact of the donation on the donor’s economic viability.

6 Management of cultural properties within, or in close proximity to the sub-project area (c/o Environmental Safeguards)

- Report on presence/absence of a cultural property

- Brief reconnaissance report of competent authority to determine what is known of the cultural aspects of the sub-project property

7 Provision for monitoring and

evaluation by an external independent monitoring agency

- Resettlement Implementation Plan - Resettlement Plan Cost Estimates - Means to validate will be TOR and Contract of

services of the EMA. 8 Due Diligence on the history of the

land to be acquired- how and when this was undertaken

- Consultation with local (barangay officials) in the community

- Consultation with project sub-proponents how and when land was acquired

- Report on land acquisition

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Annex 2H: Compensation Table

Type of Loss Application Entitled Person Compensation / Entitlement

Category A - Ownerswith full title, taxdeclaration or who arecovered by customarylaw (e.g. Possessor’srights, usufruct) orother acceptable proofof ownership

For the portion of land needed:

¾ Cash compensation at replacement cost for the land asdetermined by a licensed independent appraiser usinginternationally recognized valuation standards as provided in2.b and 2.q of the Policy.

¾ Subject to the provisions set forth in Section 5 of RA 8974

¾ Cash compensation for perennials of commercial value asdetermined by the DENR or the concerned appraisalcommittee.

¾ DP will be given sufficient time to harvest crops on the subjectland

1. Arable Land Actual areaneeded by theproject and theremaining land isstill economicallyviable

Category B - DPswithout title, taxdeclaration, or are notcovered by customarylaw or otheracceptable proofs ofownership

For the portion of the land needed:

¾ DP will be given time to harvest crops

¾ Cash compensation for perennials of commercial values asdetermined by DENR or the concerned appraisal committee

¾ Financial assistance to make up for the land preparation in theamount of Php 150 per sq.m.

Remaining landbecomeseconomically notviable (i.e. DPlosing >20% ofland holding oreven when losing<20% but theremaining land isnot economically

Category A ¾ Cash compensation at replacement cost for the land asdetermined by a licensed independent appraiser usinginternationally recognized valuation standards as provided in2.b and 2.q of this Policy; or, if feasible, ‘land for land’ will beprovided (a new parcel of land with an equivalent productivity,located at an area acceptable to the DP and with long termsecurity of tenure.

¾ Subsistence allowance of Php 15,000 per ha.¾ DP will be given time to harvest crops¾ Cash compensation for perennial of commercial value as

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Type of Loss Application Entitled Person Compensation / Entitlement

viable anymore) determined by the DENR or the concerned appraisal committee¾ If relocating, DP to be provided free transportation¾ Rehabilitation assistance(skills training and other development

activities) equivalent to Php 15,000 will be provided incoordination with other government agencies if thepresentmeans of livelihood is no longer viableand the DPwill have toengage in a new income activity.

Category B ¾ Financial assistanceequivalent to the average annual grossharvest for the past 3 yearsbut not less than Php 15,000

¾ DPwill be given sufficient time to harvest crops¾ Cash compensation for perennialsof commercial value as

determined by the DENR of the concerned appraisal committee¾ Financial assistance to make up for land preparation in the

amount of Php 150 per sq. m.¾ If relocating, DP to be provided free transportation¾ Rehabilitation assistanceequivalent to Php 15,000 will be

provided in coordination with other government agencies if thepresent means of livelihood is no longer viableand theDPwillhave to engage in anew income activity.

Category C -Agricultural lessees

As per RA 6389 and EO 1035

¾ Disturbance compensation equivalent to five times theaveragegross harvest on the land holding during the five precedingyears but not less than Php 15,000

¾ Rehabilitation assistanceequivalent to Php 15,000Temporary use ofland

All DPs ¾ Compensation to be provided for loss of income during theperiod, standing crops, cost of soil restoration and damagedstructures

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Type of Loss Application Entitled Person Compensation / Entitlement

Actual areaneeded by theproject and theremaining land isstill viable forcontinued use

Category A For the portion of the land needed:

¾ Cash compensation at replacement cost for the land asdetermined by a licensed independent appraiser usinginternationally recognized valuation standards asprovided in2.b and 2.q of this Policy.

¾ Subject to the provisions set forth in Section 5 of RA 8974

¾ Cash compensation for perennialsof commercial value asdetermined by the DENR of the concerned appraisal committee

Remainingresidential orcommercial landbecomes notviable forcontinued use

Category A ¾ Cash compensation at replacement cost for the land asdetermined by a licensed independent appraiser usinginternationally recognized valuation standards asprovided in2.b and 2.q of this Policy.

¾ Subject to the provisions set forth in Section 5 of RA 8974 or iffeasible, ‘land for land’ will be provided in terms of a newparcel of land of equivalent productivity, at a locationacceptable to the DP, and with long-term security of tenure.The replacement land should be of acceptable size underzoning laws or a plot of equivalent value, whichever is larger,in a nearby resettlement with adequate physical and socialinfrastructure. When the affected holding is larger in valuethan the relocation plot, cash compensation will cover thedifference in value.

¾ Cash compensation for perennials of commercial value asdetermined by the DENR of the concerned appraisal committee

¾ If relocating, DP to be provided free transportation

2. Residentialland and orCommercialland

Temporary use ofland

All DPs ¾ Compensation to be provided for loss of income during theperiod, standing crops, cost of soil restoration and damagedstructures

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Type of Loss Application Entitled Person Compensation / Entitlement

Owners of structurewith full titleor taxdeclaration to the landor those who arecovered by customarylaw

¾ Compensation in cash for affected portion of the structureincluding the cost of restoring the remaining structureasdetermined by theconcerned appraisal committee with nodeduction for salvaged building materials.

¾ DPs that have businessaffected due to partial impact on thestructureareentitled to a subsistence allowance for the lossofincome during the reconstruction period. (to be computed byMRIC)

3. Mainstructures (e.g.house, shopsetc)

Structure with orwithout abuilding permit,partially affectedand theremainingstructure isstillviable forcontinued use.

Owners of structures,including shantydwellers in urbanareas, have no title ortax declaration to theland or otheracceptable proof ofownership.

¾ Compensation in cash for affected portion of the structureincluding the cost of restoring the remaining structureasdetermined by theconcerned appraisal committee with nodeduction for salvaged building materials.

¾ Shanty dwellers in urban areas who opt to go back to theirplace of origin or to beshifted to government relocation siteswill be provided free transportation

¾ DPs that have businessaffected due to partial impact on thestructureareentitled to a subsistence allowance for the lossofincome during the reconstruction period. (to be computed bytheMRIC)

¾ Professional squatters will not receive compensation but theycan collect their salvaged materials

Renters of structuresincluding rentersofshanty dwellings inurban areas

¾ Given 3 months noticeon the schedule of demolition

¾ If shifting is required, DP is given transitional allowanceequivalent to one month rent of a similar structure within thearea.

¾ For house tenants renting outside of, or within the ROW, andwho have to transfer elsewhere, free transportation will beprovided

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Type of Loss Application Entitled Person Compensation / Entitlement

¾ Renting shanty dwellers in urban areas who opt to go back totheir place of origin in theprovince or beshifted to governmentrelocation sites will also beprovided free transportation

Entire structureaffected or whenthe remainingstructurebecomes notviable forcontinued usewith or without abuilding permit

Owners of structureswith full titleor taxdeclaration to the landor those who arecovered by customarylaw.

¾ Compensation in cash for the entire structureat replacementcost as determined by theconcerned appraisal committeewithout deduction for salvaged building materials

¾ Inconvenience allowance of Php 10,000 per DP

¾ DPs that have businessaffected due to the severe impact on thestructureareentitled to a subsistence allowance for the lossofincome during the reconstruction period. To be verified andcomputed by theMRIC

¾ Free transportation if relocation isnecessary

¾ Rehabilitation assistance in the form of skills training and otherdevelopment activities and equivalent to Php 15,000 will beprovided in coordination with other government agencies if thepresent means of livelihood is no longer viableand theDPwillhave to engage in anew income activity.

¾ Professional squatter will not receive compensation but theycan collect their salvageable materials

Renters of structuresincluding rentersofshanty dwellings inurban areas

¾ Given 3 months noticeon the schedule of demolition

¾ If shifting is required, DP is given transitional allowanceequivalent to one month rent of a similar structure within thearea.

¾ For house tenants renting outside of, or within the ROW, andwho have to transfer elsewhere, free transportation will beprovided

¾ Renting shanty dwellers in urban areas who opt to go back totheir place of origin in theprovince or beshifted to governmentrelocation sites will also beprovided free transportation

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Type of Loss Application Entitled Person Compensation / Entitlement

¾ Rehabilitation assistance in the form of skills training and otherdevelopment activities and equivalent to Php 15,000 will beprovided in coordination with other government agencies if thepresent means of livelihood is no longer viableand theDPwillhave to engage in anew income activity.

Owners of structurewith or without fulltitleof tax declarationto the land or thosewho arecovered bycustomary law.

¾ Compensation iscash for affected portion of thestructure,including the cost of restoring the remaining structureasdetermined by theconcerned appraisal committee with nodeduction to salvaged building materials.

¾ As determined by theMRIC, DPs will beentitled to transitionalallowance to cover for their computed income loss during thedemolition and reconstruction of their shops, but not to exceeda month period

Shops with orwithout buildingpermit, partiallyaffected and theremainingstructures are stillviable forcontinued use.

Renters (tenants) ofaffected shops

¾ As determined by theMRIC, shop renterswill be entitled to atransitional allowance to cover for their computed income lossduring the period that their business is interrupted.

4.Independentshops

Entire shopaffected or whenthe remainingstructurebecomes notviable forcontinued usewith or withoutbuilding permit

Owners of structurewith or without fulltitleof tax declarationto the land or thosewho arecovered bycustomary law.

¾ Compensation in cash for the entire structureat replacementcost as determined by theconcerned appraisal committeewithout deduction for salvaged building materials.

¾ Subsistenceallowance of Php 15,000 to each DP.

¾ Free transportation if relocating

¾ Rehabilitation assistance in the form of skills training and otherdevelopment activities and equivalent to Php 15,000 will beprovided in coordination with other government agencies if thepresent means of livelihood is no longer viableand theDPwillhave to engage in anew income activity.

¾ Professional squatter will not receive any compensation butthey can collect their salvageable materials.

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Type of Loss Application Entitled Person Compensation / Entitlement

Renters (tenants) ofaffected shops

¾ Given 3 months noticeon the schedule of demolition

¾ As determined by theMRIC, shop renterswill be entitled to atransitional allowance to cover for their computed income lossduring the period that their business is interrupted, but not toexceed a 3-month period.

5. Other fixedassets orstructures

Loss of, ordamage to,affected assets,partially orentirely

DPs ¾ Cash compensation for affected portion of thestructureincluding the cost of restoring the remaining structure, asdetermined by theconcerned appraisal committee, with nodepreciation or deduction for salvaged building materials.

6. Electric andor waterconnection

Loss of, ordamage to,affected assets,partially orentirely ,

DPs ¾ Compensation to cover cost of restoring the facilities

9. Publicfacilities

Loss of, ordamage to, publicinfrastructure

Concerned agencies ¾ Compensation in cash at replacement cost to respectiveagencies

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Annex 2I: Terms of Reference –External monitoring Agency A. Introduction

Monitoring and evaluation of resettlement is an integral part of the project cycle, and one of the requirements of RAP that the implementing agency and project proponent will appoint an independent, qualified, and unbiased entity that could be a social science institute, an NGO, a specialist consulting firm or combination of these to conduct the external monitoring and evaluation. The external monitoring agency must ensure that the provisions of the RAP are adhered to, examine available data and information systems, and obtain complete and objective information. More specifically, the tasks of external monitors are: 1. Review and verify all existing data, data bases and information systems including

census of families to be relocated; the data files for each relocated family and their entitlements, the census of families completed post relocation, and the Project Management Office data base on affected families.

2. Verify the results of internal monitoring being carried out and any other agencies

involved in implementing the RAP and providing entitlements to DPs, and suggest improvement to those systems.

3. Assess whether the resettlement objectives, as set out in the RAP, have been met,

with respect to living conditions and livelihood. 4. Ascertain whether the resettlement entitlements were appropriate to meeting the

objectives of the RAP, and whether the objectives were suited to affected families’ conditions.

5. Obtain data and assess the social impacts of resettlement (before and after

conditions) and the effectiveness, impact and sustainability of the resettlement process in social terms.

6. Review the viability of housing schemes for DP’s affordability to meet costs.

Obtain data and assess the economic impacts of resettlement, including environmental cost/benefit analysis, and the effectiveness, impact and sustainability of the resettlement process in economic terms.

7. Review systems for management and financial monitoring of the RAP, audit

internal management data relating to the RAP and recommended improvements. 8. Make recommendations regarding the implementation of the RAP and draw

lessons as a guide to future resettlement policy making and planning. 9. Prepare and agree with PMO on a detailed work program that includes meetings,

reports and schedules.

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10. Confirms if DPs maintain their standard of living. 11. Review the absorptive capacity of relocation sites. 12. Identify total number of households that are entitled to benefits and determine if

they are receiving entitlements. 13. Disaggregate data by gender to determine gender impacts. B. Methodology

Data Base Establishment

The implementing agency is developing a system for recording information about settler families and their entitlements. This database will be used to record basic information, determine whether affected persons are relocated to secure and affordable socialized formal housing sector; the receipt of entitlements under the RAP; whether livelihood and living standards have been restored or enhanced or not; and that an orderly and peaceful relocation of informal households has taken place. The data will include benefit monitoring and evaluation indicators. Quantitative data from the annual survey will be analyzed and interpreted in conjunction with data obtained during quarterly monitoring including qualitative data. C. Ex-post survey and evaluation

The EMA will conduct one ex-post evaluation survey, at least one year after the last survey. This evaluation will assess the achievement of the resettlement objective, the change in living standards and livelihood and progress in the restoration of the economic and social base of relocated families. D. Sampling Size

The EMA shall develop a methodology approved by the Project Proponent and Implementing Agency to determine appropriate sample size to ensure coverage of all relocation/ resettlement sites. Data will be disaggregated by gender. E. Expertise Required.

Expertise required will include

i. A sociologist/resettlement specialist with expertise in all areas of social research methodology, including consultation techniques and large scale survey design and implementation, and a thorough understanding of issues of urban poverty. This person will be likely to act as team leader.

ii. An economist

iii. A financial monitoring specialist

iv. A database specialist

v. A community development specialist

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The team should be able to conduct the monitoring and evaluation in an objective manner, incorporating a wide range of viewpoints, to work closely with their counterparts and undertake training and capacity building in monitoring and evaluation. The team will also include necessary technical and administrative support staff such as statistical experts, field community/survey staff and office support staff. F. Reporting

The EMA will provide copies of comprehensive monitoring reports together with recommendations to improve implementation of the RAP to the Project Proponent and Implementing Agency one week after the above stated reports are due.

The EMA will set up a gender-disaggregated database for monitoring and evaluation building upon the pre- and post-relocation census data and the project’s internal record-keeping system. This will be done as early as possible.

The database will be used to measure the impact of relocation, and change at the resettlement sites post relocation as the intended social and economic development takes place including appropriate benefit indicators. The database will also be used to monitor the receipt of entitlements by affected families and verify that the application of entitlements is appropriate and conforms to the RAP. G. Quarterly Monitoring The EMA will conduct quarterly monitoring for as long as relocation activities are in progress. This is to ensure that conditions for resettlement as contained in the RAP are being followed and to verify the results of internal monitoring and the receipt of the entitlements. Specifically, quarterly monitoring will examine the resettlement budget and time frame, the entitlements provided, consultation with affected people and stakeholders and the application of grievance redress mechanisms. This ongoing monitoring will also assess broader social and economic impacts and benefits. It will specifically address issues and needs of both relocated families and families yet to relocate, including a commentary on the rate of relocation and implementation of the RAP.

Information required will be obtained from the internal monitoring database, including information form entitlement files of families receiving assistance, reports from the site management offices, and participatory rapid appraisal to allow wide public participation including focus group discussions and key informant interviews. In addition to DPs, respondents should include POs, NGOs, LGUs and staff of the other implementing agencies. H. Annual Survey The EMA is required to undertake an annual, sample survey of the relocated families which will be undertaken in conjunction with every fourth quarter monitoring. This survey will be independent from the census to be undertaken by the Project Proponent and Implementing agency. The EMA’s survey will compare “before and after” social and economic conditions and reassess the needs of resettled families.

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Annex 2J: Terms of Reference –Independent Appraiser The Independent Appraiser will play a key role during the Land Acquisition Assessment process. It will be hired by the Project Proponent with the consent of the Implementing agency. Criteria for selecting the appropriate agency shall be based on competence, experience and general advocacy of the group. The selection process will undergo the usual procurement procedures.

The licensed independent appraiser should use internationally recognized valuation standards to assess replacement cost and cash compensation for affected lands. More specifically the Independent Appraiser may be tasked to perform any of the following:

1. Inspection and identification of the property

a. Conduct title plotting to determine the configuration of the property and if there are any discrepancies from the technical description of the title

b. Survey of immediate neighborhood for present conditions and improvements

c. Title Verification

d. Owner Verification

e. Background information

2. Right of Way Verification 3. Zonal Classification of land 4. Zonal Valuation for the Area 5. Preparation of appraisal report to include the following

a. Summary of property valuation b. Complete description and details of the property c. Photographs of subject property d. Location and vicinity plan

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Annex 2K: Grievance and Commitment Registry

No Date Received

Name Area/ Location

Case/ Commitment

Cost Action/ Solution

Date Closed

Comments

1

2

3

4

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Annex 2L: Where to File/Raise Complaints and Grievances (Contact Persons)

Organization Name of

Contact Person

Position Contact Details

LBP of the Philippines

(still to be hired)

Social Safeguards

Manila Water (MWCI)

Social Safeguards

(TBD) (TBD )

Maynilad Water (MWSI)

Social Safeguards (TBD ) (TBD (TBD )

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ANNEX 3: Summary of Public Consultation Proceedings on the MWMP IESSMF

The minutes will be included in the updated version of the document.