SOCIAL MONITORING REPORT
Semi-Annual Report
(July-December 2016)
Loan/Grant Number(s): L2851-NEP; G0284-NEP
Integrated Urban Development Project
(IUDP)
Prepared by Department of Urban Development and Building Construction IUDP,
Project Coordination Office, for Ministry of Urban Development and the Asian
Development Bank
I
CURRENCY EQUIVALENTS
(As of 30 June 2016)
Currency unit - Nepalese (NPR)
NPR 1.00 = $0.00921
$ 1.00 = 108.53 NPR
This social monitoring report is a document of the borrower. The views expressed herein do not
necessarily represent those of ADB's Board of Directors, Management, or staff, and may be
preliminary in nature.
In preparing any country program or strategy, financing any project, or by making any
designation of or reference to a particular territory or geographic area in this document, the Asian
Development Bank does not intend to make any judgements as to the legal or other status of any
territory or area.
ii
Government of Nepal Asian Development Bank
Ministry of Urban Development
Department of Urban Development and Building Construction
IUDP, Project Coordination Office
INTEGRATED URBAN DEVELOPMENT PROJECT (IUDP)
Loan/Grant Number(s): L2851-NEP; G0284-NEP
SEMI- ANNUAL SOCIAL SAFEGUARD
MONITORING REPORT (SMR)
(July to December, 2016)
January 2017
TABLE OF CONTENTS
1. Project Background ................................................................................................................. 1
2. Status of Updated Resettlement Plan ...................................................................................... 1
3. Land Acquisition and Compensation Disbursement Status ...................................................... 4
4. Process for Acquiring Land for Landfill Site.............................................................................. 6
5. Safeguard Requirements as per Resettlement Plan ................................................................ 6
6. Grievance Redress Mechanism (GRM) ................................................................................... 7
7. Establishment of Safeguard Desk………………………………………………………….………….8
8. Status of Compliance with Loan and Grant Covenants ............................................................ 8
Annex:
Annex-1: Guthi Sansthan Letter to Janakpur SMC
Annex-2: Photographs
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List of Acronyms and Abbreviations
ADB Asian Development Bank
APs Affected Peoples
CDC Compensation Determination Committee
CDO Chief District Officer
DAO District Administration Office
DDR Due-Diligence Report
EMP Environmental Management Plan
GRC Grievance Redress Committee
GRM Grievance Redress Mechanism
HH House Holds
IEE Initial Environmental Examination
IUDP Integrated Urban Development Project
LACFC Land Acquisition and Compensation Fixation Committee
MoFALD Ministry of Federal Affairs and Local Development
MoUD Ministry of Urban Development
PCO Project Coordination Office
PIU Project Implementation Unit
PMSC Project Management Support Consultant
PPTA Project Preparation Technical Assistance
RoW Right Of Way
RP Resettlement Plan
SLFS Sanitary Land Fill Site
SMC Sub-Metropolitan City
SMR Safeguards Monitoring Report
VDC Village Development Committee
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1. Project Background
The project aims to improve the quality of life, promote socially inclusive development and support
increased economic growth in four municipalities/Sub-Metropolitan City (SMC) in Nepal namely
Dharan, Janakpur, Siddharthanagar and Nepalganj. These goals will be achieved through
improvements in the effective and efficient provision of affordable basic municipal services. These
improvements will focus on water supply, storm water drainage, solid waste management and
urban road and lanes and together will constitute integrated urban development package for each
municipality.
During the PPTA, resettlement plan of three municipalities/SMC i.e. Janakpur, Siddharthanagar
and Nepalganj was prepared and endorsed by Government, concerned municipality and ADB in
September 2011. Further, the approved resettlement plans were prepared based on preliminary
project design, therefore it was to be updated after final detail engineering design if the additional
impact identified as compare to PPTA report. The resettlement impacts on road and drainage
of all three municipalities/SMC namely Janakpur, Siddharthanager and Nepalgunj were not
found during detailed engineering design as RoWs were cleared by the municipalities/SMC as
per building bylaws of 1999. However, some resettlement impacts were observed during
construction period in drainage section in Nepalgunj Sub-Metropolitan City. Hence, resettlement
plans need to be updated incorporating identified impacts during the construction period.
Besides, alternative options had been explored to shift the vendors and hawkers in all three
municipalities/SMC for construction period so as to retain their income.
In SWM component in Siddharthanagar Municipality, land acquisition is also needed for
access road for landfill site. The land acquisition and compensation payment are
completed. Janakpur, Siddharthanagar and Nepalgunj Municipalities/SMC prepared updated
RP which was reviewed by PCO/PMSC and submitted to ADB for concurrence. The updated
RP included land acquisition status of sanitary land fill sites of both Siddharthanagar
Municipality and Nepalgunj SMC. Whereas, for Dharan SMC, the PPTA didn’t envisage the
need of resettlement plan, however during detailed design some portion of private land were
needed to be acquired for reservoir construction and required land was acquired. Thus,
Resettlement Plan was prepared and submitted to ADB.
2. Status of Updated Resettlement Plan
PPTA provisioned that, if additional losses found during detailed design, existing plan will be
updated and submitted to ADB for concurrence prior to commencement of civil works. Three
updated RPs were received from Janakpur, Siddharthanagar and Nepalgunj Municipalities/SMC
and reviewed by the PCO/PMSC and submitted to ADB. A resettlement plan was also prepared
for Dharan SMC as some private lands were needed to be acquired to construct reservoir.
The status of Updated Resettlement Plan is as follows:
Dharan SMC
During PPTA, resettlement impact was not envisaged for implementation of Water Supply Sub-
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Project in Dharan SMC however, detailed design showed that some private land were needed for
construction of reservoir. Hence, a Resettlement Plan was prepared. Three households lost 729
sqm land comprising 5 numbers of plots. The Resettlement Plan was reviewed by the
PCO/PMSC and submitted to ADB. The land value has been fixed by the LACFC as replacement
value. Please refer Table 2.
Janakpur SMC
The updated Resettlement Plan for storm water drainage and road subproject was prepared in
Janakpur SMC. The detailed design indicated that no additional impact was identified. Most of
the structures that have been demolished are within the existing RoW, thus no likely
resettlement impact was envisaged. Alternative places will be explored by the Janakpur SMC for
Vendors/hawkers if any temporary impact will occur during construction period. The Janakpur
SMC ensured that all the demolition in proposed road and drainage section is within the RoW
and it was cleared by the Janakpur SMC. Thus, the updated resettlement plan is not required.
As no resettlement impact is seen, the due-diligence report will be prepared for Janakpur SMC.
Transitional plan has also been prepared to manage SMC waste until alternative landfill site is
identified and formally acquired. The landfill site that was previously fixed at Fulgama VDC had
some disputes resulting cancellation of that site. The alternative location of landfill site has been
identified at Mahuwa VDC ward no. 9 (belonging to Bhoyal Math). The land is under Guthi
Sansthan ownership and the Guthi Sansthan informed JSMC that it is positive to provide the
land for landfill site on lease basis (Refer Annex -1).Total area of land is about 8.53 hectare
comprising 32 plots. The JSMC is working on acquisition of required land.
Siddharthanagar Municipality
Resettlement impacts were not found on storm water drainage and road subproject as the
structures demolished along the road and drainage fall under existing RoW which was finalized by
the municipality on 1999 on the basis of Building Bylaws, thus no scope of resettlement impact
found in aforesaid subprojects. Further, the house owners are voluntarily demolishing their
houses as requested by the Municipality as reported by Project Manager. Some trees have to
be cut down in Sanitary Landfill Site during construction of landfill site structure. The owner will
remove the trees and use himself thus no compensation needed for the trees. The DSC is
planning to mobilize land surveyor to plot the land for structure very shortly. Vendors/hawkers
shifted their business in different places during drainage and road construction and will re sume
their business in original places after the completion of construction works. Hence,
compensation is not needed for them as no impact recorded on their livelihood due to project
interventions. Further, as reported by the DSC, the SMC is planning to bu ild permanent
structures for vendors/hawkers in specific location proposed by the Municipality. The proposed
location are; Khajana path, Maitri path and Bimanghat path.
Standing cash crops were damaged by the access road construction for transportation of
construction materials. The losses inventory was recorded and DSC recommended to GRC for
loss incurred by the access road. These losses have been identified in Lumbini road to
Maudihawa Chowk through Galamandi and Durga khola road. The payment of these losses will
be made under the contractor's Bill of Quantity (BoQ). Process for compensating the losses has
already been initiated. In Anchalpur chowk to Sano Dumdumwa khola diversion drain, the original
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design was stone pitching and trapezoidal structure resulting requirement of additional land
beyond the Right of Way (ROW). The surrounding people would claim the compensation to be
made for the loss of land along with crossing structure. With a view to avoid the losses, the DSC
redesigned the proposed structure in rectangular shape which prevented in acquiring the
additional land. Alternative access road for sanitary landfill site is explored and land acquisition is
completed. Total 0.4 ha of private land from 15 households was acquired and cost of land was
determined as a replacement value which amounted as NRs. 3256562.50. However, two affected
households are still found reluctant to receive the compensation amount claiming that the amount
fixed is less than the market price. The PMSC expert visited the site and consulted affected
persons and other community people that the amount determined by CDC was based on
replacement value. It is natural phenomenon that the price escalation has been seen over the two
years period. The original rate fixation was done two years ago. The claim is not found logical and
recommended to DSC to deposit the amount in District Administration Office.
Nepalgunj SMC
Significant Resettlement impacts have not been seen on storm water drainage and road subproject
as the structures demolished along the road and drainage do not fall under existing RoW which was
finalized by the Nepalgunj SMC on 1999 on the basis of Building Bylaws. However, during physical
construction, some impacts on private land, structures and access to private houses were found due
to construction of drainage. The complains were also submitted in Nepalgunj SMC for the impacts
incurred by the project interventions. Some private lands were affected during construction of
Kontipur outfall system due to trapezoid design and earthen nature of the drainage resulting access
to the agriculture field. For this, the Nepalgunj SMC installed Hume pipes sufficiently for crossing to
the agriculture field. It has been observed that no more issue remains in this regard.
Regarding the complaint of land owner to reinstate boundary wall and latrine damaged during
construction of Dondra Khola storm water drainage at ward no. 15, Koreanpur, Nepalgunj SMC; the
Nepalgunj SMC made agreement with the concerned land owner to reinstate the damaged
boundary wall and construct improved toilet with septic tank. The reinstatement and construction of
these loses have been completed. However, the owner was not satisfied and claiming some cash
from the Municipality. The Nepalgunj Municipality agreed to provide cash compensation. The two
houses in Paraspur created obstacle during the construction of drain work by not demolishing the
front part of their houses. However, it is reported by the DSC that the house owner themselves built
the house with the help of community people as no severe impact has been recorded by these
losses.
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Table 1: Proposed Sub-Project Components
Subproject Municipality/SMC Land Acquisition
Nepalgunj Siddharthanagar Janakpur
Storm water Improvement Improvement and Improvement and Drainage will be
drainage and Development of Development of constructed within
Development of storm water storm water RoW in Janakpur
storm water drainage drainage and
drainage Siddharthanagar
whereas some
portions of land is
acquired in
Nepalgunj.
Solid waste Construction of Construction of The alternative Nepalgunj SMC and
management sanitary landfill sanitary landfill site is identified at Siddharthanagar
site at site at ward no 8 Mahuwa VDC Municipality
Ward n o . 7 of of Patkhauli VDC ward no. 9 and have already
Hirminiya VDC and total of land acquisition acquired land from
and total of 8.47 4.06ha of land is process is private owners and
ha of land is required for the underway; Janakpur SMC
required for the development of Transitional plan is in the process to
development of landfill site. has been acquire land
landfill site. prepared for
temporary
management of
waste
Roads and Reinstatement Reinstatement of Reinstatement of The required land
lanes of Urban Roads Urban Roads Urban Roads falls under existing
RoW which is
Determined on 1999
by the
Municipalities/SMC
based on Building
Bylaws.
Source: Resettlement Plan 2011, 14 T A 7727 NEP; Field visit 2015
3. Land Acquisition and Compensation Disbursement Status
Project Implementation Unit (PIU) of Nepalgunj and Siddharthanagar distributed land compensation
for landfill site to the owner and ownership transfer of acquired land was completed. Nepalgunj
SMC has acquired 8.47 ha land from four land owners which is about 1 ha more than the original
plan. This is because of 1 ha land is not useful for land owner as it lies in middle part of the
acquired land. Discrepancies were seen between the amount of private land to be acquired as
per approved draft RP and land acquisition for landfill site in First Semi-Annual Safeguard
Monitoring Report. The field visit was made to Nepalgunj SMC and found that the payment has
been made as a replacement cost by following negotiation process as per land acquisition act
1977 where land owner were asked to come for negotiation in District
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Administration Office (DAO) under Land Acquisition and Compensation Fixation Committee
(LACFC) and finalized the unit rate for affected land consensually. Land owners are satisfied with
the payment they received from the PIU. Further, some portions of private land need to be
acquired in drainage construction works in Nepalgunj SMC which is in the process of
acquisition. The land owners have shown their willingness to donate the land.
Similarly, total of 4.06 ha of land has been procured from one land owner in Siddharthanagar out
of 5.41 ha which seemed a bit lower as compare to PPTA report. 1.35 ha land is not required due
to technical reasons. The payment for landfill site land is based on unit rate mentioned in
PPTA report in which cost variation has not been identified in line with the PPTA report. The
payment has been made as a replacement cost following due process collecting market and
government unit rates before submitting to Compensation Determination Committee (CDC) for
fixation of compensation amount. No structure has been observed in both landfill sites in
Siddharthanagar and Nepalgunj except few private trees in Siddharthanagar landfill site. It has
been agreed with tree owner in Siddharthanagar that, construction location of landfill site’s tree
would be removed by owner himself and compensation would not be paid for the same. However,
PIU would be responsible to pay compensation for remaining trees outside the construction
location as per market and district forest office rates. Some 25 numbers of trees have already
been removed by tree owner. Moreover, total of 0.4 ha of private land of 15 households was
acquired for sanitary landfill site's access road in Siddharthanagar municipality and cost of land
was determined as a replacement value which amounted as NRs. 3,256,562.50. However, two
affected households are found reluctant to receive the compensation amount claiming that the
amount fixed is less than the market price. The PMSC expert visited the site and consulted affected
persons and other community people that the amount determined by CDC was based on
replacement value. It is natural phenomenon that the price escalation has been seen over the two
years period. The original rate fixation was done two years ago. The claim is not found logical and
recommended to DSC to deposit the amount in District Administration Office. Similarly, deed
transfer of 17 affected plots is also completed.
In Janakpur SMC, the landfill site that was previously finalized at Fulgama VDC had some
disputes resulting cancellation of that site. The location of alternative landfill site has been
identified at Mahuwa VDC ward no. 9. The land is under Guthi Sansthan ownership and the Guthi
Sansthan is positive to provide the land for landfill site on the lease basis. Total area of land is
about 8.53 hectare comprising 32 plots. The JSMC is working for acquisition of required land.
The resettlement plan was not prepared in Dharan SMC during PPTA, though the resettlement
impacts were found in detailed design and prepared resettlement plan. All together 729 sqm private
land has been acquired from three households comprising 5 plots. The compensation amount has
been fixed by the LACFC following due process as a replacement value. The detail of land
acquisition and compensation payment status is given in table 2.
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Table 2: Land Acquisition and Compensation Disbursement Status
Municipality/ Land to be Actual land compensation Remarks
SMC acquired has been paid (NRs)
based on acquired
RP
Nepalgunj 7.41 ha 8.47ha 21,250,000.00 100% compensation paid
for 4 affected land owners
on 23 May 2013; about 1
hector more land is needed
as it was not useful for land
owner
Siddharthanagar 5.81 ha 4.46 ha 11,931,391.00 100% compensation paid
for one affected land owner
for landfill site in June
2012; whereas 85%
compensation paid for
landfill site access road.
1.35 hector land is not
required due to technical
cause in landfill site
Dharan 0.07 ha 0.07 ha 5,115,000.00 100% compensation paid
for 3 household comprising
5 plots
4. Process for Acquiring Land for Landfill Site
Table 3 indicates process followed while acquiring the land for development of landfill site based on
PIU reporting.
Table 3: Process for Acquiring Land for Landfill Site
Activity Nepalgunj Siddharthanagar Janakpur Dharan
The Local officer(CDO) New Madesh Gorkhapatra daily Land Gorkhapatra
Issues notice National Acquisition daily
including purpose of daily process is
Date of Notice published 10 June, 2011 19 March, 2012 being 30 Jan
30 July, 2011 initiated 2015
GoN assign Government Executive Executive officer Executive
officer to officer officer
begin preliminary action
Necessary preliminary Yes Yes Yes
survey including
boundary demarcation of landfill
site
Land revenue office report on Yes Yes Yes
area and
location of land to be
Formation 6 August, 2012 26 March, 2013 31 March
of 2015
CDC meeting was held 7 August, 2012 26 March, 2013 31 March
for 2015
5. Safeguard Requirements as per Resettlement Plan
Table 4 indicates safeguard requirements fulfilled as per approved Resettlement
Plan/ Resettlement Framework.
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Table 4: Safeguard Requirements as per Resettlement Plan
A Status Notes
Formation of GRC Achieved GRC in Nepalgunj,
Siddharthanagar, Dharan and
Janakpur municipalities/SMC formed
Disbursement of compensation Achieved Compensation paid in Nepalgunj SMC
for development of sanitary landfill and Siddharthanagar municipality for
site, private land for reservoir landfill sites; compensation paid for
construction and landfill site access private land for construction of
road reservoir in Dharan SMC; 100%
compensation paid for landfill site
access road in Siddharthanagar
Ownership transfer 100% Nepalgunj, Siddharthanagar and
Dharan municipalities/SMC completed
100% ownership transfer whereas
Loss inventory and census survey for Completed All four municipalities/SMC completed
additional losses after detailed design loss inventory and census survey
Preparation of Updated Resettlement Completed Nepalgunj, Siddharthanagar and
Plan Janakpur municipalities/SMC prepared
updated RP and submitted to ADB after
reviewing by PCO/PMSC while Dharan
SMC prepared resettlement plan and
submitted to ADB. Further, the resettlement
plan needs to be updated for all the three
municipalities
For vulnerable groups, Not started
additional subsistence allowance yet
equivalent to NRs 30,000/HH for
enhancing livelihood
The APs dependent on agriculture Not started List of participants is being finalized.
livelihood are eligible for medium- yet
term income restoration activities
which include skill development
training based on need at the rate of
NRs 10,000/person/HH
Identification of vendors/hawkers Being Will be identified during civil works
which could be affected during initiated Implementation and adopt impact
construction mitigation measure by exploring
alternative places during construction
period.
6. Grievance Redress Mechanism (GRM)
Grievance Redress Mechanism has been established in all project municipalities/SMC. It has been
observed that the GRM is less functional as regular meetings have not been conducted so far. It is
suggested by the ADB that the informal grievances should also be recorded and make amicable
solution for the same. The PCO/PMSC is planning to circulate letter to all municipalities/SMC
towards conducting GRM meeting at least once a week and make it more effective.
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7. Establishment of Safeguard Desk
The Safeguard Desk has been established in Dharan, Janakpur, Siddharthanagar and Nepalgunj
Municipalities/SMC. The Safeguard Desk in each municipalities/SMC will organize monthly
meeting to i) assess the safeguards compliance performance as guided by EMP and RP; ii)
identify area of gaps, if any; iii) agree on timely corrective action plan to mitigate the impacts;
and iv) prepare periodic safeguard monitoring reports.
8. Status of Compliance with Loan and Grant Covenants
S.N Covenants Status of Remarks
Compliance
Sector
Implementation Arrangements
1 Resettlement
The Beneficiary shall ensure or cause MOUD and MOFALD to Complied with/
ensure, that all land and all rights-of-way required for the Being complied with.
Project, each Subproject and all Project facilities are made
available to the Works contractor in accordance with the
schedule agreed under the related Works contract and all land
acquisition and resettlement activities are implemented in
compliance with (a) all applicable laws and regulations of the
Beneficiary relating to land acquisition and involuntary
resettlement; (b) the Involuntary Resettlement Safeguards; (c)
the RF, for Subproject under Part 2 of the Project; and (d) all
measures and requirements set forth in the RP, and any
corrective or preventative actions set forth in the Safeguards
Monitoring Report (Schedule 5, Para 4)
Without limiting the application of the involuntary
Resettlement Safeguards, the RF or the RP, the Beneficiary
shall ensure or cause the MOUD to ensure, that no physical or
economic displacement takes place in connection with the
Subprojects until: (Schedule 5, Para 5 a&b)
(a) compensation and other entitlements have been provided Complied with.
to affected people in accordance with the RP, the cost of
which shall be borne by the Beneficiary and the relevant
Municipality; and
2 Safeguards Related Provisions in Bidding Documents and
Works Contracts
The Beneficiary shall ensure or cause MOUD to ensure that all
bidding documents and contracts for Works contain provisions
that require contractors to:(Schedule 5, Para 8a to 8e)
(a) comply with the measures relevant to the contractor set Being Complied
forth in the IEE, the EMP, the RP and any indigenous peoples' With. Provision has
plan (to the extent they concern impacts on affected people been made in
during construction), and any corrective or preventative bidding documents
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S.N Covenants Status of Remarks
Compliance
actions set forth in a Safeguards Monitoring Report; and contracts for
works.
(b) make available a budget for all such environmental and Being Complied
social measures; With. Budget
provision has been
made in bidding
documents and
contracts for works.
(c) provide the Beneficiary with a written notice of any Being Complied With
unanticipated environmental, resettlement or indigenous / Will be followed.
peoples risks or impacts that arise during construction,
implementation or operation of the Project that were not
considered in the IEE, the EMP, the RP or any indigenous
peoples' plan;
(d) adequately record the condition of roads, agricultural land Being Complied
and other infrastructure prior to starting to transport With/ Will be
materials and construction; and followed.
e) fully reinstate pathways, other local infrastructure, and Being Complied
agricultural land to at least their pre-project condition upon With/ Will be
the completion of construction. followed.
3 Safeguards Monitoring and Reporting
The Beneficiary shall do the following or cause MOUD to do
the following: ( Schedule 5, Para 9a to 9 c)
(a) submit semi-annual Safeguards Monitoring Reports to ADB Complied with/
and disclose relevant information from such reports to Being complied with.
affected persons promptly upon submission; Seven semi-annual
SMR prepared
and
(b) if any unanticipated environmental and/or social risks and Complied with.
impacts arise during construction, implementation or
operation of the Project that were not considered in the IEE,
the EMP, the RP or any indigenous peoples' plan, promptly
inform ADB of the occurrences of such risks or impacts, with
detailed description of the event and proposed corrective
action plan; and
(c) report any actual or potential breach of compliance with Will be followed.
the measures and requirements set forth in the EMP, the RP
or any indigenous peoples' plan promptly after becoming
aware of the breach.
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ANNEX
ANNEX-1
Guthi Sansthan Letter to Janakpur SMC
ANNEX-2
Photographs
Toilet & Boundary wall construction at Koreanpur, House reinstate at Paraspur, Nepalgunj SMC
Nepalgunj SMC
