azura power west africa ltd. rp1274 v2 rev...rp1274 v2 rev azura power west africa ltd. addendum to...

Azura Power West Africa Ltd.

Addendum to the Resettlement

Action Plan (RAP) for the Azura-Edo

Independent Power Plant

ERM Document: 0190440_130730_V6.00

July 2013

www.erm.com

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Typewritten Text

RP1274 v2 rev

Azura Power West Africa Ltd.

Addendum to the Resettlement

Action Plan (RAP) for the

Azura-Edo Independent Power

Plant

ERM Document: 0190440_130730_V6.00

For and on behalf of

Environmental Resources Management

Approved by: Sarah Murfitt

Signed:

Position: Partner

Date: 30 July 2013

This report has been prepared by Environmental Resources

Management the trading name of Environmental Resources

Management Limited, with all reasonable skill, care and diligence

within the terms of the Contract with the client, incorporating our

General Terms and Conditions of Business and taking account of

the resources devoted to it by agreement with the client.

We disclaim any responsibility to the client and others in respect of

any matters outside the scope of the above.

This report is confidential to the client and we accept no

responsibility of whatsoever nature to third parties to whom this

report, or any part thereof, is made known. Any such party relies

on the report at their own risk.

CONTENTS

1 INTRODUCTION 4

1.1 RATIONALE 4

1.2 APPROACH 5

1.3 LIMITATIONS 6

2 BASELINE 7

2.1 INTRODUCTION 7

2.2 ADMINISTRATIVE STRUCTURE 8

2.3 DEMOGRAPHICS 8

2.4 COMMUNITY NETWORKS AND LINKAGES 10

2.5 INCOME GENERATING ACTIVITIES AND LIVELIHOODS 11

2.6 INFRASTRUCTURE 22

2.7 EDUCATION 25

2.8 HEALTH 25

3 RESETTLEMENT IMPACTS 27

3.1 INTRODUCTION 27

3.2 OVERVIEW OF KEY DISPLACEMENT IMPACTS 27

3.3 KEY DISPLACEMENT IMPACTS: DETAIL 28

3.4 SUMMARY 31

3.5 VALUATION METHOD 37

4 RESETTLEMENT SITES 38

4.1 CALCULATING INTERNATIONAL STANDARDS COMPENSATION AMOUNTS 46

ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.

4

1 INTRODUCTION

1.1 RATIONALE

ERM recently worked with Azura Power West Africa Ltd (hereafter referred

to as “Azura” or “the Project”) to develop an Environmental Impact

Assessment (EIA) and Resettlement Action Plan (RAP) for a 450 MW gas-fired

power plant in Nigeria.

The project site comprises two plots: Plot A and Plot B, as shown in Figure 1.1.

The RAP for the Project addressed resettlement impacts associated with Plot

A, which comprised two communities: Orior and Idunmwowina. A third

community, Ihovbor-Evboeka declined to be part of the resettlement process

at the time and so resettlement impacts associated with this community

(whose land claims are situated within Plot B) could not be addressed.

Since that time, Ihovbor-Evboeka has agreed to be part of the resettlement

process and Azura requested that the RAP be updated to include Plot B and

resettlement provisions for Ihovbor-Evboeka.

Subsequent to ERM’s production of the original RAP, Azura commissioned a

land and asset inventory of Ihovbor-Evboeka. This inventory was completed

by Adamu Kasimu & Associates. A corresponding social census was not

completed at this time. This Addendum presents the findings of the social

census that was carried out in February 2013 to expand the existing RAP to

include the community of Ihovbor-Evboeka. This Addendum should

therefore be read in conjunction with the original Project RAP (Resettlement

Action Plan for the Azura-Edo Independent Power Plant – finalised on 13

February 2012, and referred to hereafter in this document as “the 2012 RAP”).


5

Figure 1.1 Site Layout

The objective of this report is to capture the outcome of the social census in

Ihovbor-Evboeka as an Addendum to the 2012 RAP. It should be read as an

addition to Section 4: Baseline, Section 5: Resettlement Impacts and Section 6:

Resettlement Sites of the 2012 RAP; captured within Sections 2, 3 and 4 of this

report respectively.

1.2 APPROACH

In order to update the Azura RAP, a social census of 100% of the Ihovbor-

Evboeka households was conducted. In order to generate a comprehensive

picture of the community all the available households were included within

the survey, including those that contained land claimants and those that

contained no land claimants, based on the Azura asset survey (conducted

during 2011). This census of 100% of the households present in Ihovbor-

Evboeka therefore showed that the village included 116 households with a

total population of 766. Not all of these households included land claimants.

The asset survey listed 236 individual land claimants, but, based on

investigation during the social cenus, 124 of those claimants were identified as


6

living outside the project-affected area in Benin City (or elsewhere). Therefore

the social census was conducted with households that included the remaining

112 land claimants.

The social census questionnaire used previously for Orior and Idunmwowina

was used for this work in order to ensure consistency and comparability

between the two datasets.

The social census was conducted by a team of 4 people over 6 days in the

field, with an additonal 8 days of data capturing. ERM undertook daily

debriefing and review sessions of the completed questionnaires. Any

omissions or inaccuracies were corrected in the field. The team undertaking

the census were accompanied by two community members to witness and

assist procedings on behalf of the Enogie (local traditional leader) and the

community.

1.3 LIMITATIONS

Census limitations were identified in the field. The first was that the asset

survey was conducted independently of the social census and almost a year

beforehand. This meant that respondents had to participate in two separate

survey processes, which led to some stakeholder fatigue and required the

census team to keep their survey focused and concise. The survey team

included all questions within the survey form but on occasions had to omit or

hurry qualitative questions in order to avoid stakeholder fatigue.

Secondly, the social census team had to make sure that all respondents

corresponded with the appropriate claimant households on the asset survey.

This was made somewhat more time consuming by the fact that about 50% of

the claimants on the asset survey lived outside the project affected area in

Benin.


7

2 BASELINE

2.1 INTRODUCTION

The socio-economic baseline information presented below supplements the

information that was collected for the communities of Idunmwowina and

Orior in 2011, as part of the 2012 RAP. The purpose of this baseline is three-

fold:

1. To provide information needed for the entitlements matrix setting out

compensation options for affected stakeholders in Ihovbor-Evboeka;

2. To provide sufficient social and economic information for the design of

appropriate livelihood restoration and development initiatives;

3. To set out quantifiable demographic, economic, educational, occupational

and health indicators that can be used for future monitoring and

evaluation of RAP implementation.

The information in this section is drawn from the socio-economic baseline for

the 2012 RAP, as well as from the household census that was undertaken in the

community of Ihovbor-Evboeka in February 2013. Presentation of information

follows the same format used for the socio-economic baseline for the

communities of Idunmwowina and Orior. The following aspects of the

community are addressed in this section:

Administrative Structure;

Demographics;

Community Networks and Linkages;

Income Generating Activities and Livelihoods;

Infrastructure;

Education; and

Health.

The following sections present updated baseline information for Ihovbor-

Evboeka, with comparison against information gathered for Idunmwowina

and Orior as part of the 2012 RAP. In cases where the social context is the

same as that described in the 2012 RAP, this has been noted, along with

reference to the appropriate section of that document.

It is important to note that baseline information has been provided for both

households that contain land claimants as well as those that do not.


8

2.2 ADMINISTRATIVE STRUCTURE

2.2.1 Traditional Administrative Structure

An overview of the traditional administrative structure is consistent with that

provided in Section 4.2.2 of the 2012 RAP.

Ihovbor-Evboeka consists of a number of clans/groups – such as Oshodin,

Enobore and Oloha. Each of these is controlled by a traditional chief who sits

on the Elders Council with others who all report to and advise the Enogie. The

Oba of Benin is (referred to locally as His Royal Majesty, the Oba of Benin). He

is the overall traditional leader of all the Benin Kingdom and of all the Edo

people.

Figure 2.1 Traditional Leadership Structures Ihovbor-Evboeka

2.3 DEMOGRAPHICS

2.3.1 Population

Ihovbor-Evboeka has approximately 766 residents (approximately 112

households), making it the smallest of the three communities included in this

RAP. Of this population, only one household will be affected by physical

resettlement.

Large families are common within the affected Plots A and B. Whereas 36

percent of households covered in the first survey consisted of more than ten

people, in Ihovbor-Evboeka only 18 percent of households were of this size.


9

The majority of households in Ihovbor-Evboeka (22 percent) have fewer than

five members, in contrast with the other communities where the minority of

households (18 percent) were of this size. Therefore, the trend for the

community of Ihovbor-Evboeka is to have mid-sized households (between 5

and 9 members). Many households are multi-generational (1).

2.3.2 Gender

Overview

Overall, the census revealed that 49 percent of the individuals from the

affected community are female, which is similar to the 2010 national average

of 50 percent female. The household survey data indicated that there are nine

female – headed households in Ihovbor-Evboeka, which is 7.9 percent of total

households. This is slightly less than in the other surveyed communities,

where 12.8 percent of households were female-headed.

Marital Status

The majority of inhabitants over the age of 18 in Ihovbor-Evboeka are single

(48.7 percent, compared with 35.2 percent married), whereas the majority of

inhabitants in the first two communities surveyed were married. Divorce,

while uncommon (0.9 percent of those surveyed or 7 respondents) is

marginally higher in Ihovbor-Evboeka than in the other communities

surveyed, which reported no divorces. The percentage of widowed members

of Ihovbor-Evboeka (1.7 percent) is lower than the other two communities (4

percent).

2.3.3 Age Profile in Affected Households

The population age profile in Ihovbor-Evboeka is in line with national and

state averages and similar to that of the other surveyed communities, with the

general trend being a relatively young population.

Table 2.1 Age and Gender Breakdown of the Affected Population

0-5 yrs 12.1% Male: 65.5% Female: 34.4%

6-18 yrs 29.3% Male: 50.6% Female: 49.3%

19-50 yrs 44.6% Male: 47.0% Female: 53.0%

51+ yrs 13.5% Male: 52.0% Female: 48.0%

National data sourced from the World Bank, 2010

As noted in Table 2.1 , the working age population (19-50 years) represents

nearly 45 percent of the total community. This is slightly more than in the

communities of Idunmwowina and Orior, where the working age population

constitutes 41 percent.

(1) EIA Final Report 451MW Ihovbor Proposed Power Plant


10

The working age population of Ihovbor-Evboeka is predominantly female (53

percent), compared with the working age population in Idunmwowina and

Orior, which is 57 percent male. This could be attributed to stakeholder

reports of young men of working age leaving the region in search of work or

training opportunities.

2.3.4 Ethnicity, Language and Religion

Within the community of Ihovbor-Evboeka, 81 percent identified themselves

as Bini. ‘Other’ was the second largest group (9.7 percent) and Ishan was the

third (5.7 percent).

In line with the other surveyed communities, peoples living in Ihovbor-

Evboeka include Urhobo, Ora, Efik, Kalaba, Ijaw, Hausa, Fulani and Yoruba

and some who identified themselves as unknown.

In Ihovbor-Evboeka, as with the other surveyed communities the majority of

residents are practicing Christians, with 90.8 percent attending church on a

regular basis, compared to only 2.6 percent who attend mosque on a regular

basis. Only 4.1 percent of those surveyed report that they visit traditional

shrines on a regular basis, of these the majority are men over the age of

eighteen. Similarly to the other surveyed communities, the low level of

traditional religious observance could be associated with the fact that

members of the community do not visit shrines regularly, but rather on

special holidays and when considered necessary.

2.4 COMMUNITY NETWORKS AND LINKAGES

2.4.1 Introduction

This section describes the social networks within and between communities in

the region. Information gathered for Ihovbor-Evboeka indicates that

membership and participation in social groups is essentially the same as in the

communities of Idunmwowina and Orior, and are characterized by a high

level of religious (Christian) – based socialization. As in Idunmwowina and

Orior, men are most likely to participate regularly in social groups.

2.4.2 Community Support Networks

A significant majority of residents report that they attend church on a regular

basis (91.5 percent). Men and women are almost equally represented within

this group (50.2 percent of the group is male and 49.8 percent is female). Only

2.6 percent of residents attend their mosque regularly. Within the group who

attend their mosque regularly, 45 percent are men and 55 percent are women.

Approximately 5.6 percent of residents participate in other types of social

groups and men were found to hold a slight majority within this group, with

56.8 percent. It is worth noting that while male participation in social groups is

spread amongst households (25 males from 25 households), female

participation tends to be grouped among members of the same household (19

women from 13 households).


11

2.5 INCOME GENERATING ACTIVITIES AND LIVELIHOODS

2.5.1 Introduction

Based on information collected through household surveys, employment and

income levels in Ihovbor-Evboeka are lower than in the communities

surveyed in 2011. This is in contrast to reports from those residents of

Idunmwowina and Orior, who indicated that Ihovbor-Evboeka had benefited

disproportionately from the NIPP project (see Section 4.4.2 of the 2012 RAP). It

should be noted that data regarding levels of income are notoriously

unreliable and anecdotal evidence gathered during the household survey

indicated that households may be under-reporting income or over-reporting

expenditure for the purposes of perceived benefits that would be received in

terms of compensation or community investment.

2.5.2 Income Sources

The most common sources of income among surveyed respondents in

Ihovbor-Evboeka are agriculture (77.2 percent) and petty trading (63.1

percent). This mirrors the results from the other surveyed communities

(where agriculture provided income for 62.5 percent of respondents, and petty

trading 50 percent). Figure 2.2 illustrates the sources of household income.

Figure 2.2 Sources of Household Income in Ihovbor-Evboeka

The household survey allowed respondents to indicate that residents within a

household generated income from more than one source. Figure 2.3 shows not

only the primary, but also alternative sources of income for surveyed

households. It illustrates a comparison between household survey

respondents’ primary sources of income and their overall source of household

income.

Figure 2.3 Primary Source of Household Income


13

Figure 2.3 illustrates that although 77.2 percent of households generate their

income from agriculture, it is only the primary source of income for 39.5

percent of respondents. For petty trading, 63.1 percent identified it as a source

of income, while only 7.9 percent identified it as their primary source of

income. This is similar to the differentiation seen in this category in the other

surveyed communities.

The third most common source of primary income for Ihovbor-Evboeka is

salary (19.3 percent). Artisan work was identified as the fourth most common

primary source of income, among 15.8 percent of households.

Although income generation between the three communities is similar, there

are some nuanced differences with respect to primary sources. For example,

labour wages were the second most common primary source of income in

Idunmwowina and Orior (approximately 27 percent). In Ihovbor-Evboeka,

labour wages are far less significant and account for only 7.9 percent of

primary income, the same percentage as petty trading. This may indicate that

Idunmwowina and Orior have benefited more from hiring for the NIPP

powerplant than Ihovbor-Evboeka.

According to survey respondents, the most common occupation in Ihovbor-

Evboeka was reported as ‘Other’ (49.2 percent). However, no information to

clarify ‘other’ was provided. In Idunmwowina and Orior, petty trading was

reported as the most common occupation (29.7 percent); in Ihovbor-Evboeka,

petty trading was reported to be the second most common occupation (14.2

percent).

Figure 2.4 illustrates the distribution of the other occupations in the

community of Ihovbor-Evboeka. There are not a lot of similarities between

the communities of Ihovbor-Evboeka and the other two surveyed

communities with respect to occupation breakdown. In Idunmwowina and

Orior, farming and construction were reported as key occupations, whereas in

Ihovbor-Evboeka these were relatively minor. It should be noted that 49.2

percent of respondents answered “Not Applicable”, or “No Answer” to this

question.


14

Figure 2.4 Distribution of Occupations

2.5.3 Household Income and Expenditure

The household survey also considered Ihovbor-Evboeka’s monthly income

level. Figure 2.5 shows that the most common monthly household income was

indicated to be between N 30,000 and N 50,000 (USD189 and USD315). This is

the same as in Idunmwowina and Orior. In addition, and as in Idunmwowina

and Orior, a significant number of households in Ihovbor-Evboeka indicated

that they earned less than N 30,000 a month (44 percent); however, unlike the

other communities, very few households in Ihovbor-Evboeka indicated that

they earned more than N 50,001 per month (0.9 percent). This would indicate

that average income in Ihovbor-Evboeka is lower than in Idunmwowina and

Orior. This contradicts reports from residents of Idunmwowina and Orior

that Ihovbor-Evboeka had been favoured in the distribution of benefits from

the NIPP project.


15

Figure 2.5 Distribution of Total Monthly Household Income

Based on currency conversion of N1.00 = 0.00630300 USD as of 19/01/13, from XE Currency Converter

In Figure 2.6 the largest reported expenditure for surveyed households was on

food, which represented 42.7 percent of expenditure. This was the same as in

Idunmwowina and Orior. The next two largest expenditures were

transportation (14.6 percent) and health care and medicine (9.7 percent). This

is broadly comparable to the other two surveyed communities’ monthly

expenditures.

The above holding true, issues related to the accuracy of reporting on income

and expenditures remain the same for Ihovbor-Evboeka as for the other

surveyed communities. That is that income may have been underreported as

a result of hesitancy among survey respondents to discuss income levels,

potentially due to a perceived risk from crime (as noted in the 2012 RAP, see

Section 4.5). It has also been noted that data regarding income and

expenditure is notoriously unreliable as respondents may feel uncomfortable

openly discussing or estimating numbers, because of socio-cultural

expectations and associated taboos.


16

Figure 2.6 Monthly Household Expenditures

2.5.4 Income Generation and Gender

The household survey indicated that there were nine female-headed households (FHH) in Ihovbor-Evboeka, which equals approximately eight percent of the total heads of households. This is lower than in Idunmwowina and Orior where the household survey data indicated that there are 12 female headed households within the surveyed area; equating to approximately 12.8 percent of the total number of households.

As is the case in Idunmwowina and Orior, FHH in Ihovbor-Evboeka typically

generate much less monthly income than male-headed households (MHH).

The comparison between monthly income generation between female and

male heads of households is shown in Figure 2.7.

As indicated, FHH are more likely to earn less monthly income than MHH,

and there are no FHH in the top earning bracket. This represents a significant

difference with the communities of Idunmwowina and Orior, where 29.1

percent of FHH reported earnings in excess of N 50,000 (USD314).

In addition, both male and female residents of FHH typically earn less

monthly income than their counterparts in MHH. Figure 2.8 illustrates this

comparison. This same trend was identified in the other two surveyed

communities.


17

Figure 2.7 Comparison of Monthly Household Income Distribution

Figure 2.8 Comparison of Personal Income Distribution

Not only did residents of FHH report less monthly income, but only 5.9

percent of respondents indicated income in excess of N 30,000 (USD189),

compared to 8.4 percent of residents of MHH. This same trend was seen in

the other two surveyed communities.

It should be noted that 306 out of 766 survey respondents provided

information on income – percentages have been provided based on those who

provided information (rather than the total survey respondents). The


18

omissions are assumed to be children or those household members still

involved in full time education.

2.5.5 Agriculture and Animal Husbandry

Agriculture is an essential livelihood activity in Edo State and in Ihovbor-

Evboeka. According to surveyed respondents in Ihovbor-Evboeka only 12

percent of households do not practice some form of agricultural cultivation.

In addition, approximately 39.5 percent of households identified agriculture as

a primary source of income. This is similar to the trend that has been

identified in the communities of Orior and Idunmwowina. Common types of

agricultural activities are shown in Table 2.2. These are the same types of

agricultural activity commonly practiced in the communities of Orior and

Idunmwowina.

Table 2.2 Agricultural Activity by Household

Activity Number of Households

Arable Crops 100

Cash Crops 99

Subsistence Crops 99

Animal Husbandry 52

2.5.6 Land Cultivation

Cultivation practices are generally the same in Ihovbor-Evboeka as they are in

the communities of Orior and Idunmwowina (see Section 4.5.3) of the 2012

RAP.

2.5.7 Land Tenure and Ownership

The 2012 RAP provides useful background information about the land tenure

process in the region. This can be found in Section 4.5.4 of that document.

Nearly 53 percent of households in Ihovbor-Evboeka report holding legal land

title for their cultivated land; approximately 30 percent rent their land and one

respondent identified that they owned their land, but without legal title. Zero

percent of respondents in Ihovbor-Evboeka reported that they hold no

agricultural land (though it should be noted that such could be the case

among non-respondents). These land tenure trends are similar to those

identified in the communities of Orior and Idunmwowina (see Section 4.5.4 of

the 2012 RAP). It should be noted that total percentages do not equal one

hundred, as not all of the households responded to this question.

2.5.8 Crops

Arable Crops


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The most common type of arable crop in Ihovbor-Evboeka is cassava. Figure

2.9 sets out the key crops in Ihovbor-Evboeka as a percentage of the total

household cultivation. As the graph indicates, the second most cultivated

crop is maize (74.6 percent), followed by yams (62.3 percent). This is similar to

crop cultivation in Orior and Idunmwowina, with the exception of vegetables,

which are far more prevalent in those two communities (at 71 percent) than in

Ihovbor-Evboeka, where vegetables are the fourth most common arable crop,

at 58.8 percent.

Figure 2.9 Arable Crop Cultivation

Note that many households cultivate multiple crops, which is why the total percentage is over 100 percent

Subsistence Crops

Cassava is the most important crop grown for household subsistence, as

reported by 82.4 percent of households in Ihovbor-Evboeka. Maize is the

second choice and yams the third, at 39.5 percent and 29 percent respectively.

The trend is similar in the communities of Orior and Idunmwowina; however,

as noted above, vegetables reportedly play a larger role in subsistence crop

production in those two communities than in Ihovbor-Evboeka.

Cash Crop

As in Orior and Idunmwowina, plantains/bananas are the most popular cash

crop in Ihovbor-Evboeka (80 percent, refer to Figure 2.10). Also in line with

the communities of Orior and Idunmwowina, this is followed by palm oil (8.8

percent). The other types of cash crops produced in Ihovbor-Evboeka include

cocoa, kola nuts and coconuts. In this way, cash crops in Ihovbor-Evboeka

differ from those produced in Orior and Idunmwowina, where the production

of rubber and sugar cane as cash crops were more prevalent.


20

Figure 2.10 Cash Crop Cultivation

2.5.9 Income from Agricultural Activities

As noted in Section 2.5.2 (Figure 2.2), nearly 40 percent of households earn their

primary source of income from agricultural activities.

Income is primarily earned through the sale of crops (94 percent of

households) and none of the crops cultivated in Ihovbor-Evboeka are sold

through intermediaries (i.e. middle-men). This is a difference between

Ihovbor-Evboeka and the communities of Orior and Idunmwowina, which

either sell their crops to intermediaries or direct to the consumer.

As in Orior and Idunmwowina, the majority of households in Ihovbor-

Evboeka (48 percent) sell their crops in Benin City. 34 percent stated they sell

their crops to surrounding villages (34 percent) and very few (two percent) of

the crop sales from Ihovbor-Evboeka are made in Ehor town market. This is in

contrast to Orior and Idunmwowina, which sell 23 percent of crops in Ehor

town market.

2.5.10 Animal Husbandry

The types of livestock kept by residents of Ihovbor-Evboeka are similar to

those kept in Orior and Idunmwowina. The most common type of livestock in

Ihovbor-Evboeka is poultry (39 percent of households), followed by goats (29

percent of households keep at least one). Four percent of households keep

pigs and two percent keep rabbits or cane rats. There were no reports of

sheep being kept (while two percent of households in Orior and

Idunmwowina reported having sheep). Approximately 26 percent of

households do not keep any livestock.


21

2.5.11 Entrepreneurial Activity

Entrepreneurial activity is a significant source of income for households in the

community of Ihovbor-Evboeka, providing income for approximately 89

percent of households. The main types of entrepreneurial activities reported

in Ihovbor-Evboeka are listed in Table 2.3 and mirror those activities found in

the communities of Orior and Idunmwowina.

Table 2.3 Entrepreneurial Activity

Activity No. of Households Percentage of Surveyed

Households

Mechanic 9 7.9 percent

Petty Trading 109 95.6 percent

Hair dressing 15 13.2 percent

Handicrafts 4 3.5 percent

Transport 17 14.9 percent

2.5.12 Employment and Unemployment

Employment levels are low in Ihovbor-Evboeka, as they are in Orior and

Idunmwowina. Approximately 41 percent of respondents over the age of 18

have some type of employment (full-time or part-time), and of those positions,

75.5 percent are temporary.

Approximately 37 percent of respondents in Ihovbor-Evboeka are employed

on a full-time basis, which is slightly higher than those with full-time

employment in Orior and Idunmwowina (27 percent).

Among those who are full-time employed, 88.3 percent have permanent

positions; this is similar to Orior and Idunmwowina, where 83 percent of full-

time workers have permanent positions. Only 8.9 percent of full-time workers

in Ihovbor-Evboeka have temporary positions. The remaining 2.8 percent

provided no response.

Part-time employment accounts for just over four percent of employment in

Ihovbor-Evboeka, which is similar to that reported in the other two surveyed

communities. Among the part-time employed, only 12.1 percent report

having permanent positions; the remaining part-time workers have

temporary, seasonal or otherwise occasional work.

2.5.13 Other Sources of Income

Certain households receive income from sources other than entrepreneurial

and employment activities. These other sources of income are the same for

Ihovbor-Evboeka as for the communities of Orior and Idunmwowina and

include:


22

remittances (money received from family members outside of the village)

provide a source of income for seven percent of households;

pensions (received from past employment) provide a source of income for

six percent of households; and

real estate revenue (from rental/lease of property/land) provides a source

of income for approximately two percent of households.

No households reported receiving income from savings, which is the same as

the other two surveyed communities. This further reinforces reports that

banks are inaccessible and rarely used by stakeholders.

2.6 INFRASTRUCTURE

2.6.1 Introduction

As with the communities of Orior and Idunmwowina, Ihovbor-Evboeka’s

infrastructure is not substantial. The supply of electricity is sporadic although

access is fairly widespread. No households surveyed in Ihovbor-Evboeka

reported having piped water in their homes. The roads within the community

and those linking them to the wider region are poorly maintained, making

them particularly difficult to traverse during the rainy season.

2.6.2 Power

Approximately 68% percent of respondents in Ihovbor-Evboeka reported that

their household has access to a public electricity supply from the Power

Holding Company of Nigeria (PHCN) (note that not all survey respondents

provided answers to these questions this is the number who reported using

electricity for lighting). This places Ihovbor-Evboeka significantly higher than

the survey results for the communities of Orior and Idunmwowina, with

respect to access to power, as Orior-Osemwende (1). has no supply of

electricity and in Idunmwowina, only 31 percent of survey respondents use

electricity for lighting. This may be explained by the time gap between the

surveys in the community, during which the provision of electricity locally

may have increased (as indicated by some of the anecdotal observations made

during the household census).

As with the communities of Orior and Idunmwowina, kerosene is the most

popular fuel in the community of Ihovbor-Evboeka, and is used by 68.4

percent of households for cooking, and 44.7 percent of households for lighting.

Electrical generators are used by 6.3 percent of households in Ihovbor-

Evboeka: this is much less common than in the other surveyed communities,

where 32 percent (2) of respondents use generators for their lighting needs (see

Section 4.6.2 in the 2012 RAP).

(1) Orior-Osemwende has since received access to public power from PHCN

(2) Note that some of these communities have since received cabled power supply.


23

In Ihovbor-Evboeka, 74.6 percent of respondents reported using wood for

cooking, compared to only five percent of respondents in the other two

communities.

2.6.3 Telecommunications

As with the other two surveyed communities, almost all households in

Ihovbor-Evboeka (96.5 percent) have at least one mobile phone.

Radios are a popular source of information and communication; 85 percent of

households in Ihovbor-Evboeka have at least one radio, which mirrors the

data collected from the other two surveyed communities. Slightly fewer

households in Ihovbor-Evboeka own televisions (80 percent), than in the

communities of Orior and Idunmwowina (in which 92 percent of households

reported owning a television).

2.6.4 Housing

The most common type of house in Ihovbor-Evboeka is made with brick (72

percent), followed by mud homes, which account for approximately 28

percent of homes in the community. These percentages are slightly lower

than for the other two communities, where 90 percent of homes are brick and

eight percent are mud.

In Ihovbor-Evboeka, similarly to the two other surveyed communities, the

houses made of brick tend to belong to families of high socio-economic status

(reporting a higher income) while those made of mud belong to families of

lower socio-economic status.

2.6.5 Transport

The conditions of roads are generally considered to be ‘satisfactory’ by 74.6

percent of respondents. 9.6 percent considered road conditions to be ‘good’,

while 8.8 percent consider them to be unsatisfactory. As with the other

surveyed communities, motorcycles are the most common mode of

transportation in Ihovbor-Evboeka with 35 percent of households owning at

least one. Cars are owned by 29 percent of households, while 12 percent of

households have bicycles. These results are in line with the survey results

from the communities of Orior and Idunmwowina.

2.6.6 Water

According to those surveyed, public wells are the most common source of

water; and are relied upon by 97.4 percent of households. This is very

different from the results for Orior and Idunmwowina, where it was observed

that there were no wells for public use, and the majority of water was sourced

from water vendors or tanks.

There is more access to piped water in the other two communities than in

Ihovbor-Evboeka, where zero percent of households have piped water in their

homes. Two percent have piped water access outside of their homes (on their


24

property), which is a similar percentage to the other two surveyed

communities (three percent).

2.6.7 Sanitation Facilities

Within Ihovbor-Evboeka, the majority of households use dry pit latrines (56

percent). Pit latrines are also the most common type of sanitation system in

Orior and Idunmwowina (used by 70 percent of households). More

households in Ihovbor-Evboeka have access to individual water born sewage

systems (44 percent) than do residents of Orior and Idunmwowina (23

percent).

There are no community toilets in Ihovbor-Evboeka, whereas in the

communities of Orior and Idunmwowina, four percent use community toilet

facilities.

2.6.8 Cultural Infrastructure

Traditional worship and practices around sacred sites are described in Section

4.6.8 of the 2012 RAP.

Ihovbor-Evboeka has the highest number of sacred sites of the three

communities surveyed, with 14 sacred sites within and around the village

(this is compared to five sites reported in Orior and five sites reported in

Idunmwowina). In addition to those named in Table 2.4 below, others include

Awakaba, Oto, Edigbo, Osapana, Owowo, Ahoza, Egbon, Osunewah and Efai.

Table 2.4 Cultural Sites in Ihovbor-Evboeka

Name of sacred site

worshipped in

community

Location Materials used for

worshipping

Time of year/

frequency of worship

Osun–Ewuare Forest Goat, sheep, cow,

chicken

April-May/ annually

Osun–Ukokomo Forest Goat, sheep, cow,

chicken

November/ annually

Ovia Forest Dog, chicken, tortoise

March/ annually

Edion House Goat, antelope,

chicken

February/ annually

Isakpana House Chicken, corn

January/ annually

Edion-Ugbo Road Junction Male goat

June/ annually

Ake Forest Chicken

August/ annually

Ovator Forest Dog, chicken

October/ annually

Osun-Egbon Road Junction Male goat, chicken

December/ annually

Source: NIPP, 2010


25

2.7 EDUCATION

2.7.1 Facilities

Within Ihovbor-Evboeka, there is a primary school that accepts attendees from

across the village, however there are no other schools. It is likely that this

contributes to the lower levels of education and training in comparison with

the communities of Orior and Idunmwowina.

2.7.2 Education Levels

Among residents of Ihovbor-Evboeka over the age of 19, approximately 38

percent have completed secondary school. This is lower than in Orior and

Idunmwowina, where 61 percent of residents over age 19 have completed

secondary school.

Of the 38 percent of people in Ihovbor-Evboeka who have completed

secondary school, 29 percent have college or university degrees, compared

with only 14 percent of secondary school graduates in Orior and

Idunmwowina.

In Ihovbor-Evboeka, 25 percent of residents over the age of 19 have only

primary school education or less, which is similar to the communities of Orior

and Idunmwowina.

Professional/ vocational training levels in Ihovbor-Evboeka are low, even

compared with the low levels in Orior and Idunmwowina. Only 13 percent of

surveyed residents (aged 19 or older) report having received some kind of

professional training, and 76.5 percent have no professional training

whatsoever. In Orior and Idunmwowina, 28 percent of residents over age 19

had some professional training, and 72 percent had none.

2.8 HEALTH

2.8.1 Health Status

The health profile of Ihovbor-Evboeka appears to be slightly better than that

of Orior and Idunmwowina. Within Ihovbor-Evboeka, only nine percent of

residents were reported as being sick in the previous month, compared with

16 percent reported in the communities of Orior and Idunmwowina. It should

be noted, of course, that the elapsed time between surveys of Orior and

Idunmwowina, and of Ihovbor-Evboeka mean that certain variables may have

changed to affect this comparison.

Of the nine percent who had fallen ill in Ihovbor-Evboeka in the past month,

the reported illnesses are considered common ailments within Edo State (see

Table 2.5, which lists the common diseases in Ihovbor-Evboeka).


26

Table 2.5 Common Diseases in the Ihovbor-Evboeka

Disease No. of Individuals

Malaria 3.8% (29 respondents)

Typhoid fever 0.65% (5 respondents)

Heart disease/ hypertension 0.52% (4 respondents)

Rheumatism 0.52% (4 respondents)

Arthritis 0%

Fever and cough 0.52% (4 respondents)

Skin conditions 0%

Diarrhea 0.13% (1 respondent)

Pneumonia 0%

As in Orior and Idunmwowina, there were no reported cases of HIV/AIDS,

although the absence of reporting could be due to stigma associated with the

condition.

2.8.2 Facilities

When they do fall ill, the majority of respondents in Ihovbor-Evboeka

reported that they would usually consult the public hospital (67.2 percent).

This is a marked difference from Orior and Idunmwowina, where only three

percent said they would do the same. 14 .2 percent of respondents would

consult a private hospital (compared with 11 percent in Orior and

Idunmwowina). Approximately six percent regularly consult with informal

medicine shops or pharmacies. In general, then, residents of Ihovbor-Evboeka

seem to make more use of formal medical care than do residents of Orior and

Idunmwowina (see Section 4.8.2 of the 2012 RAP). The most common reasons

cited for selection of health care were accessibility, cost and effectiveness.

Only four percent of residents in Ihovbor-Evboeka said that they would not

consult with a health care provider when ill compared with 18 percent in

Orior and Idunmwowina.


27

3 RESETTLEMENT IMPACTS

3.1 INTRODUCTION

It is critical that the resettlement planning process arrives at a detailed

understanding of the likely impacts that the Project will have on those

subjected to physical and/ or economic displacement. This enables

development of appropriate compensation and livelihood restoration plans,

which in turn ensure that the affected people are provided with the support

needed to re-establish their homes, lives and means of existence post

resettlement, mitigating the impacts that resettlement may cause.

This section draws upon: (i) the affected community baseline outlined in

Section 2; (ii) additional information gathered through the socio-economic

fieldwork, engagement and consultation process to date; and (iii) the asset

valuation work conducted in order to inform the entitlement requirements of

each eligible group. This section seeks to identify and describe the key

displacement impacts that the affected people may experience, the predicted

scale of these impacts, and the measures required to mitigate these impacts

and ensure that the resettlement process is transformed into a mechanism for

social development. More specifically, this section includes the following:

an overview of the Project’s key displacement impacts in Ihovbor-Evboeka and the relative magnitude of these impacts;

a more detailed elaboration of each of these displacement impacts, with reference to appropriate sections of the 2012 RAP to provide an indication of the general form that appropriate compensation / mitigation / livelihood restoration measures should take, in order to ensure Project adherence to the requirements of international best practice; and

the Project entitlements matrix.

3.2 OVERVIEW OF KEY DISPLACEMENT IMPACTS

As discussed in previous sections, a proportion of Ihovbor-Evboeka is set to

experience displacement impacts because of the Project’s land acquisition

process. Table 3.1 provides a high-level overview of the displacement impacts

that the community is expected to face, along with the predicted scale of these

impacts in terms of number of affected households / people.


28

Table 3.1 Key Displacement Impacts and Associated Magnitude

Key Displacement Impacts Displaced Community

Loss of (occupied) residential housing

Physical displacement 1 household

Loss of agricultural land Economic displacement 187 land claimants

Loss of crops/ trees 204 land claimants

Loss of business structures 3 business structures (2 kiosks, 1 office)

Owners of other (non-habitable) physical assets: non-occupier of land

43 land claimants

Loss of community resources/ assets

26 community assets (17 shrines, 3 church buildings, 6 tombs)

In the following sections, each of these displacement impacts will be examined

in more detail. Where possible, indication will be provided as to the types of

compensation, mitigation and livelihood restoration measures that the Project

will be required to provide for each type of displacement impact.

3.3 KEY DISPLACEMENT IMPACTS: DETAIL

3.3.1 Loss of Residential Housing

Summary of Impact

There is one household in Ihovbor-Evboeka that is resident on the Project Plot

and will face physical resettlement. The affected house has a corrugated metal

roof and earth floor. With only one household to be physically resettled, the

overall significance of this impact may be viewed as low; however, the impact

on the affected household will be high, and will include (i) practical upheaval

related to the need to pack up the contents of the house and move to a new

location; and (ii) emotional upheaval associated with the loss of a ‘sense of

space’, and the feelings of security and familiarity that are attributed to being

‘at home’ in a particular physical context. It is also important to consider the

relative vulnerability of the affected household to the impacts of physical

resettlement. Although the household contains an influential community

member (the chief priest), broadly the village has limited income and job

opportunities and, therefore fewer resources at its disposal to facilitate

adjustment. Consequently, this household may require a commensurate

degree of assistance.

International Best Practice: Appropriate Project Interventions

The 2012 RAP for the communities of Idunmwowina and Orior sets out

international best practice for Project intervention and compensation for

physical resettlement. Please refer to Section 5.3 of the 2012 RAP for more

detailed information. The entitlements associated with this type of loss are set

out in Row A of Table 3.3 (Entitlement Matrix) in this document.


29

3.3.1 Loss of Agricultural Land

Summary of Impact

As indicated in Table 3.1, 391 people will lose access to agricultural land as a

result of the Project land acquisition. This implies a total loss of 267,290 square

meters. In comparison, Orior-Osemwende is set to lose 313,302 square meters,

and Idunmwowina will lose 66,886 square meters. Overall, approximately 41

percent of agricultural land acquired by the Project will be from Ihovbor-

Evboeka.

The majority of affected land is used for crop cultivation; as noted in Section

2.5.2 of the 2012 RAP. Agricultural activities are a key source of livelihood and

income in the community of Ihovbor-Evboeka, generating income for 77.2

percent of households, and constituting the primary source of income for

nearly 40 percent of households.



international best practice for Project intervention and compensation for

economic resettlement from rural agricultural land. Please refer to Section 5.3.2

of the 2012 RAP for more detailed information. The entitlements associated

with this type of loss are set out in Row B of Table 3.3 (Entitlement Matrix) in

this document.

3.3.2 Loss of Standing Crops and Trees

Summary of Impact

In addition to the agricultural land itself, standing crops and trees will also be

lost as a result of the Project land acquisition process. A total of 204 people

claim such losses, implying that approximately 88 percent of total claimants

will suffer this type of economic impact. Losses of crops and trees may also

have an impact on overall food security in the area.



international best practice for Project intervention and compensation for loss

of land improvements, including standing trees and crops. Please refer to

Section 5.3.3 of the 2012 RAP for more detailed information. The entitlements

associated with this type of loss are set out in Row C of Table 3.3 (Entitlement

Matrix) in this document.

3.3.3 Loss of Non-Agricultural Income/ Livelihood Sources

Summary of Impact


30

In addition to the loss of agricultural land and crops/ trees, the Project land

acquisition will require removal of two small-scale trading kiosks and one

office, which served as the base for Ihovbor-Evboeka contractors. The impacts

of this economic resettlement will include business upheaval; particularly

where these structures are small scale enterprises, and owners may require

additional support to reestablish their businesses.



international best practice for loss of livelihood assets. Please refer to Section

5.3.4 of the 2012 RAP for more detailed information. The entitlements

associated with this type of loss are set out in Row D-F of Table 3.3 (Entitlement

Matrix) in this document.

3.3.1 Loss of Community Resources/ Assets

Summary of Impact

The Project’s land acquisition will result in the loss of a number of community

assets. Table 3.2 details the affected community resources and assets.

Table 3.2 Affected Community Resources/ Assets in Ihovbor-Evboeka

Community Resource/ Asset Description

3 church buildings • Approx. 174 m2, made of compressed cement blocks. Under care of Daniel Osagioduwa

• Assembly of God Church. Approx. 242 m2, made of compressed cement blocks. Represented by Mark Agho

• Passion of God Ministry. Approx. 176 m2, made of cement blocks.

17 community/ family shrines • Family Shrine claimed by Uhunoma James

• Family Shrine “Osun”, claimed by Uwugiarien Family

• Family Shrine “Ukokomon”, claimed by Uwugiaren Family

• Community Shrine “Osun”

• Community Shrine ”Ibiemen”

• Family Shrine “Umukoro”

• Family Shrine, claimed by Yanbiyu Osairume

• Family Shrine “Oduduwamen”, claimed by Osasere Uyigue

• Family Shrine “Adabi”, claimed by Ivie Osagie

• Family Shrine “Sango”, claimed by Eki Osawaro

• Community Shrine “Ovato”, represented by Efisa Uyigwe

• Family Shrine, claimed by Osayande Family

• 4 Shrines claimed by Chief Nelson Iduwe

• Shrine “Eziza”, claimed by Patrick Otasawie

6 Tombs • Tomb claimed by Felix Obasuhan

• 2 Tombs claimed by Chief Nelson Iduwe

• Tomb claimed by Mrs. Itohan Williams

• 2 unmarked tombs, claimed by Anthony Osifo

These community resources are an important source of cultural, community

and family identity. Where physical relocation or restricted access is required,

this should be managed in careful consultation with affected stakeholders.


31



international best practice for loss of community resources or assets. Please

refer to Section 5.3.5 of the RAP for more detailed information. The

entitlements associated with this type of loss are set out in Row G of Table 3.3

(Entitlement Matrix) in this document.

3.4 SUMMARY

This section summarised the key impacts associated with the resettlement in

Ihovbor-Evboeka. In order to reduce duplication of effort, it refers to relevant

sections of the 2012 RAP for Idunmwowina and Orior to provide an overview

of international best practice guidance on how such impacts ought to be

managed and addressed. The Entitlements Matrix that was developed for the

2012 RAP is shown in Table 3.2. The matrix has been updated to reflect the fact

that the Project MOU, which was originally to be signed with the leadership of

Orior Community and Idunmwowina Community, will now also be signed

with Ihovbor-Evboeka Community (see Row B of the table). No other changes

are required, as the Project approach to entitlements has not changed since the

2012 RAP.


33

Table 3.3 Entitlements Matrix

Section Eligible Group Type of

Loss

Nigerian

Government

Compensation

Provision

Azura Power West Africa Ltd Replacement and Rehabilitation Assistance

A House owner:

customary right of

land occupancy

Housing The cash value of

the affected house

will be provided, as

per the EDSG

assessment and

valuation process.

AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation

into account) will underlie the provisions for loss of housing. The Project will supplement, where

necessary, the Government-provided compensation amount with an additional provision to ensure that the

total amount of cash received by the affected house owner is equivalent to the full replacement value of the

affected house. In addition, the Project will provide those experiencing physical displacement with:

(i) advice and support with financial planning, to enable them to employ their cash compensation to

construct a good quality new dwelling;

(ii) an additional financial bonus to those physically displaced households, if they elect to invest their

cash compensation in the construction of a new house; and

(iii) the foundations of houses at the resettlement site, to enable those experiencing physical displacement

to construct their houses with ease and with use less of their compensation money.

Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to

cover the cost of the relocation process will be provided. House owners will be allowed to dismantle and

transport parts of their buildings prior to demolition by the Project.

Disturbance allowance: A cash amount will be provided to cover disturbance caused.

B Agricultural land

occupier:

customary right of

land occupancy

Agricultural

land

Nothing will be

provided to

compensate for the

loss of the affected

agricultural land

itself.

AND Full replacement cost: The principle of full replacement (without taking depreciation into account) will

underlie the provisions for loss of agricultural land. The project will ensure that agricultural land occupiers

are paid a cash sum that is sufficient to allow them to acquire a plot of agricultural land that has a

combination of productive potential, locational advantages and other factors at least equivalent to the

agricultural land being lost. This sum will also cover the soil preparation costs to ensure that the

replacement land is ready for cultivation. The Project will provide those losing agricultural land with

advice and support with financial planning, to enable them to employ their cash compensation to re-

establish their livelihoods. In addition, the Project will sign an MoU with the leadership of the Orior

Community, Idunmwowina Community and Ihovbor-Evboeka Community, under the terms of which

those affected by the loss of agricultural land will be ensured the right to acquire land at a rate that is less

than the compensation (for loss of land) that is paid to them by the Project. Moreover, for those who choose

to acquire land under the terms of this MoU, access to at least equivalent water sources, fodder sources etc.

will also be provided and the Project will support the clearance and preparation of the land for planting.


34


Loss

Nigerian

Government

Compensation

Provision



cover the cost of the relocation process will be provided.

Disturbance allowance: A cash amount will be provided in light of the disturbance caused.

Note: If the affected person that has lost agricultural land has also lost a non-habitable physical asset /

partially-built structure on their agricultural land, they will not receive an additional disturbance allowance

for this loss of non-habitable physical asset / partially-built structure.

Livelihood restoration and development programmes: The Project will provide an intensive agricultural

development programme to those that seek to re-establish agricultural activities in the local area. This may

include:

(i) the provision of access to credit for farming inputs such as seeds etc; and

(ii) the provision of training (perhaps through the employment of an Agricultural Extension Officer) to

enhance farming skills and to encourage the use of more productive farming methods. In addition,

alternative vocational skills training will be provided. A specific needs Assessment will be carried out

to ensure that relevant and useful livelihood restoration and development programmes are established.

The livelihood restoration and development programmes established will be open to the broader

community as well as the displaced community.

C Crop / tree

cultivator (i.e. either

a sharecropper or a

farmer who

cultivates crops on

agricultural land

over which he

holds a customary

right of occupancy)

Standing

crops /

trees

The cash value of

the standing crops

/ trees will be

provided, as per the

EDSG assessment

and valuation

process.

AND Top up to achieve full replacement cost: The principle of full replacement (without considering

depreciation) will underlie the provisions for loss of standing crops / trees. The Project will supplement,

where necessary, the Government-provided compensation amount with an additional provision to ensure

that the total amount of cash received is equivalent to the full replacement value of the affected standing

crops / trees. Crop / tree cultivators will be allowed to clear any standing crops prior to land clearance by

the Project.



Disturbance allowance: A cash amount will be provided to cover disturbance caused. Note: If the affected

person that has lost crops has also lost agricultural land, they will not receive an additional disturbance

allowance for the loss of crops.

D Business owner: Business The cash value of AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation


35


Loss

Nigerian

Government

Compensation

Provision


customary right of

land occupancy

structure

(eg small-

scale

chemist

shop etc).

the business

structure will be

provided, as per the

EDSG assessment

and valuation

process.

into account) will underlie the provisions for loss of business structures. The Project will supplement,

where necessary, the Government-provided compensation amount with an additional provision to ensure

that the total amount of cash received by the affected business owner is equivalent to the full replacement

value of the affected business structure. In addition, the Project will provide affected business owners with:

(i) advice and support with financial planning, to enable them to employ their cash compensation to

construct a good quality new business structure;

(ii) an additional financial bonus to affected business owners, if they elect to invest their cash

compensation in the construction of a new business structure and retain their employees; and

(iii) the foundations of business structures at the resettlement site, to enable those affected business owners

to construct their business structures with ease and with less use of their compensation money.



Disturbance allowance: A cash amount will be provided in light of the disturbance caused.

Livelihood restoration and development programmes: An intensive business skill development,

entrepreneurship and training programme will be provided. In addition, guidance will be provided on

how to set up small businesses, and access to microfinance schemes will be facilitated, for both men and

women. A specific needs assessment will be carried out to ensure that relevant and useful livelihood

restoration and development programmes are established. The livelihood restoration and development

programmes established will be open to the broader community as well as the displaced community.

E Owners of other

(non-habitable)

physical assets:

non-occupier of

land

Immovable

(non-

habitable)

asset/s (e.g.

fences,

walls,

partially

constructed

buildings)

The cash value of

the physical asset/s

will be provided, as

per the EDSG

assessment and

valuation process.

AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation

into account) will underlie the provisions for loss of (non-habitable) physical assets owned by non-occupiers

of the land. A top-up cash amount will be provided that covers:

(i) the difference, if any, between the Government-provided compensation provision and the full

replacement value of these asset/s; and

(ii) the full replacement value of the land on which these assets are located.




36


Loss

Nigerian

Government

Compensation

Provision


F Hired employee Wages Nothing will be

provided to

compensate for lost

wages.

AND Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to


Disturbance allowance: A cash amount will be provided in light of the disturbance caused and the possible

need for the employee to change his / her location. Payment of the disturbance allowance will be tied to the

employee attending a Skills Acquisition Training programme accredited by the Project. Payment of the

disturbance allowance will also be restricted to the small number of hired employees who currently work

for businesses that were physically located on the Project site prior to the cut-off date. The owners of these

businesses will be asked to provide detailed job records of all their employees and payment of the

disturbance allowance will be restricted to those individuals whose job tenure is documented and

evidenced sufficiently.

Employment assistance: Assistance in the identification of similar jobs in alternative locations will be

provided on a case-by-case basis, if relevant.

G Community

members

dependent on

communally held

resources / assets

Communal

resources /

assets

The cash value of

the communal

resource / asset

will be provided to

the Enogie or to a

community fund, as

per the EDSG

assessment and

valuation process.

AND Full replacement: The principle of full replacement (without taking depreciation into account) will underlie

the provisions for loss of communal assets.

Replacement communal assets will be provided have a combination of productive potential, practical,

locational etc advantages and other factors at least equivalent to the assets being lost. The replacement

communal assets that will be provided are the following:

internal roads within the resettlement site;

one community health centre;

access to electricity connections from the houses and business structures at the resettlement site, subject

to affected people capacity to pay for their own electricity consumption; and

drinking water facilities at the resettlement site.

ENVIRONMENTAL RESOURCES MANAGEMENT PROPOSAL: 0196896-PA-034 V1.00

37

3.5 VALUATION METHOD

The valuation of assets for Ihovbor Community was carried out by Adamu

Kasimu and Associates who also carried out the valuation of assets for Orior

and Idunmwowina. The same valuation method was used for all three

communities and is described in the original 2012 RAP. For ease of reference,

the relevant section of the 2012 RAP is included in this report as Annex A.


38

4 RESETTLEMENT SITES

Whilst not part of our formal scope of work, ERM became aware, while

conducting the social census in Ihovbor-Evboeka, that the positioning of the

two resettlement sites has been slightly adapted to respond to matters of

suitability of purpose and availability of the required sites. ERM took some

field observations of the proposed sites while in-country, which Azura may

find useful.

The two re-positioned sites are outlined on the site plan below with red

squares. Site 1 is located to the north of Orior near the Enogie of Orior’s house

and Site 2 is located south-west of the NIPP project site.


39

Figure 4.1 Map of Proposed Resettlement Sites

The two sites are shown in the following figures.


40

Figure 4.2 Site 1 – North of Orior

Site 1 (located to the left of the track seen on the photo above), is situated close

to the Enogie’s house and has direct access to the Orior road network. Access

to the site is through an adjacent palm plantation also belonging to the Enogie

(shown in the photos below).


41

Figure 4.3 Access to site through palm plantation

Site 2 is situated on the south-west of NIPP Project and has some agricultural

developments situated immediately to its west and south. It is accessed by a

footpath (approximately 400m to the south) which connects to the Orior road

network.

The site is situated on the left side of the pathway visible on the photos below.


42

Figure 4.4 Site 2 – South East of NIPP Project


43

The following information summarises some basic points of interest regarding the two sites. Land ownership – Land on both sites is owned by the Enogie of Orior. The

land tenure system is one of informal ownership.

Site selection – It was reported that the sites were identified by the Orior

Land Allocation Committee with the input of the Enogie. The reason for the

sites being selected was that they are currently ’unused‘, and suitable for

agricultural and residential settlement.

Community Perceptions – It was reported that the two sites have not been

presented to the community for comment. The Land Allocation Committee

holds the opinion that the 2nd site is preferable because it is situated further

away from the home of the Enogie of Orior.

Land Use – Both sites are covered with dense vegetation and have apparently

not been used for any specific purpose recently. Also, until such time as

resettlement matters have been concluded, the Enogie agreed to not allocate

the land to anyone else.

Services and Infrastructure – There are no services or infrastructure present

on the proposed resettlement sites.

Resources – It was reported that the two sites are not used for purposes of

natural resource harvesting such as hunting, collection of firewood or other

natural resources.

Status of previous resettlement site alternatives – The resettlement site

located on the northern side of the highway as was proposed initially during

2011, will apparently not be considered as a suitable resettlement site any

longer. It was reported that this was because it was too far from the

settlements to be used as agricultural land.

Annex A

Valuation Method

7.1 VALUATION METHOD

Meetings, to which all affected stakeholders were invited, were held in the two affected communities before the asset valuation process began. During these meetings, issues concerning the methods of assessment, the duration of assessment, the classes of assets to be enumerated and the asset valuation approach to be used were discussed and agreed upon. In addition, the two communities appointed community representatives to oversee the field-based valuation process. Then, during the field-based valuation process itself, the valuation experts had one-on-one discussions with each claimant, to clearly explain the valuation process to them and ensure their comprehension of it. The field-based valuation process followed, which took place from 26 September 2011 to 14 October 2011, is summarised in the following bullets:

With regards to trees, head counts were conducted for each class of tree type.

With regards to crops and land plot sizes, tape measurements were used to determine the area to be valued.

With regards to buildings and other ancillary facilities, tape measurements were taken, construction details were recorded, and state of repair and level of completion was also recorded.

Still camera pictures of both the claimant and the assets were taken.

The GPS coordinates of each asset were taken.

All of this data was recorded in individual Assessment / Field Inspection Sheets.

Each Sheet was then individually endorsed by the relevant claimant, the assessment officer and the representative of Azura Power West Africa Ltd. This endorsement was, in each case, witnessed by the Chief Representatives.

7.2 Calculating EDSG Compensation Amounts

As previously mentioned, the EDSG compensation amounts have relied upon, for crops and trees, the “Harmonised Compensation Rates for Economic Trees and Crops in the South-South Geo-Political Zone”, effective as of December 2006. EDSG compensation amounts for all other improvements were established using the rates determined by the EDSG Department of Lands and Survey (see Table 7.2).

Table 7.2 EDSG Compensation Rates for Improvements (Excluding Crops and Trees)

S.No Description Amount (Naira)

/m2 /m /item

1 Bungalows: sandcrete blocks, corrugated iron sheets roof, cement screeded floor.

35,000

2 Bungalows: mud / earth blocks, thatch roof, cement screeded floor.

22,500

3 Perimeter fence: sandcrete blocks. 6000

4 Wells: manually dug, concrete casting. 85,000

5 Wells: manually dug, no concrete casting. 35,000

6 Boreholes complete with ancillary plumbing and mechanical / electrical fittings.

180,000

EDSG are required (by law) to consider depreciation when calculating the compensation for improvements. For each asset, the rate of depreciation was

based upon the professional judgment of the valuation experts on-site and took into consideration the level of completion, the level of dilapidation etc. of each asset. This calculation has then been offset by additional compensation provided by Azura to align with international standards.

4.1 CALCULATING INTERNATIONAL STANDARDS COMPENSATION AMOUNTS

Having ascertained the EDSG compensation amounts, the valuation experts then made the necessary adjustments to ensure that the final valuation adhered to the requirements of OP 4.12 and PS 5. The key basis for this valuation is full replacement. Full replacement is defined by PS 5 as “the market value of the assets plus transaction costs. In applying this method of valuation, depreciation of assets should not be taken into account. Market value is defined as the value required allowing affected communities and persons to replace lost assets with assets of similar value”. The current market value of affected improvements (excluding crops and trees) are the same as the rates provided by the estate valuators in the Ministry of Works (see Table 7.2). This is because these rates have recently been adjusted to reflect current reproduction and inflation costs. The rates were adjusted in 2011, during the assessment of the right of way for the dualisation of the Benin International Airport Road. The current market value of affected land was ascertained with reference to precedent land sales (over the last 12 months) in areas of comparable distance to Benin City and of comparable productivity to the affected land. Approximately NGN35,000.00 per square meter was offered by Azura as the market rate paid in compensation for land. Transaction costs were then added to the current market value of affected improvements (excluding crops and trees) and to the current market value of affected land. The transaction costs for affected improvements (excluding crops and trees) and for affected land were calculated at 17 percent (1) of the current market value of these affected assets, reflecting the fact that: (i) estate / search fees tend to be approximately five percent of current

market value; (ii) survey and beaconing fees tend to be approximately seven percent of

current market value; and (iii) lawyers fees tend, according to the Nigerian Bar Association, to be

approximately five percent of current market value.

To ascertain the current market value of the affected crops and trees, the “direct market comparison” approach was used. This method involves the determination of the opportunity cost of the rights of the claimants to the incomes from their individual farms and plantations throughout the resettlement period. To arrive at the rates for each of the identified crops / trees the following process was followed:

Determine the total yield of product per tree / crop type.

Establish the market price of the product.

Factor in outgoings such as labour, transport and marketing costs at 35 percent to arrive at net loss in annual income.

Establish the gestation period for replanting and reproduction per tree /crop type.

Adopt a premium market rate of return for agricultural investments; namely seven percent.

Calculate the amount of one naira, compounded at seven percent per annum for the gestation period of each tree /crop type, and multiply this by the net income (loss).

Establish the market costs of seedlings and add this to the total loss.

Multiply the resulting total by the number of crops / trees assessed for each claimant.

The valuation experts also categorised each crop / tree into mature, immature and seedling. Mature were those that were about to or had started bearing fruits, while immature were those that had not started bearing fruits but were older than seedlings. These categories were then subject to consideration as follows:

Matured tree: 100 percent of the market value.

Immature tree: 50 percent of the market value.

Seedling: 25 percent of the market value.

Supplementing the above values, the following figures were used as the basis for the provision of additional allowances to each relevant eligible group.

Relocation Allowance: Discussions with the affected communities revealed that packing up their belongings and travelling from the Plot to the furthest point in Edo state would cost approximately 5,000 naira. Accordingly, this amount will be allocated to each claimant, or alternatively, the Project itself will provide appropriate physical assistance to enable affected people to move.

Disturbance Allowance: For each eligible claimant, this amount will equate to approximately six months wages.

Incentives to Encourage House / Business Structure Re-Building: It is anticipated that these incentives will equate to approximately 25 percent of the full replacement cost of the affected houses / business structures.

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