Lessons Learned from various country’s R & R

Each country’s R & R has some lessons here are few examples from Columbia, China, Brazil, Papua New Guinea, Chad and South Africa, to be learned on the key issues which has been classified into four different themes viz., (I) Legal and Policy Framework; (ii) project preparation; eminent domain and compensation; (iii) community participation and benefit sharing; and (IV) grievance redress; monitoring and transparency. The salient messages are here organized below. A. Legal and Policy framework:

The Colombian legislative framework is informed by international norms set out in several agreements such as the Rio Declaration on Environment and Development, the Kyoto Protocol, the United Nations Agreement on Protection of World, Cultural, and Natural Patrimony, the Amazonian Cooperation Treaty, and multiple agreements on indigenous and tribal peoples. The Colombian constitution itself recognizes environmental protection and the right of people to participate in decisions that affect them as fundamental rights. It also protects ethnic, cultural, and natural diversity. The Law 21 of Columbia has the provision of benefit sharing with the affected community.

In China, gradually, laws and regulations developed at the Central government and at the project level along with the above and the technical guidelines for resettlement and planning particularly in irrigation sector. A strong need for institutional capacity in order to implement resettlement in accordance with the principles and policies led to the creation of several new ‘Resettlement Management Organizations’. There are separate state agencies for resettlement (for example, the Resettlement Bureaus in the Ministry of Water Resources and for Three Gorges Project) as well as others including the National Reservoir Resettlement Research Centre and river basin resettlement bureaus for the Yellow River, the Yangtze River, the Haihe River, and the Pearl River. Ultimately, development projects change the resource equation in China, and improving the legislation and policy framework enables benefit-sharing that can help to optimize the use of available resources. This also helped China in tackling legacy issues of pre-1978 projects.

In Brazil, both the right of the federal, state, and municipal governments to expropriate land and the right of people to housing are enshrined in the constitution. Though there is no specific legislation in Brazil for rehabilitation, there are a number of programs that vary greatly across the country. Additionally, there is no legal requirement to provide irrigated land to people who are displaced due to dams built for irrigation. But the example of the Ponto Novo dam showed that providing irrigation to resettled farmers and giving them training in their own language on how to conduct irrigated agriculture was successful.

In Papua New Guinea, there is a provision of negotiation in the constitution it self. The constitution provides for formation of development forum for negotiation which concludes with signing of Memorandum of Agreement which acts as guideline for implementation. Compensation is regarded as right and not a benefit. In order to establish land records, self declaration by land owner it self is sufficient (primarily because, 97% of the total land in PNG is communally owned).

In Chad, to manage direct oil incomes, an oil security board has been established. This board is called College of Control and security of oil resources. The members of the board includes Magistrate, representative of government, (a deputee and a Senator), National director for banks of central Africa countries, General Director of Public Accountancy, a representative from Development NGO’s, labor unions, associations for Human Rights and religious communities. Members of college are chosen by other members and elected by president for three years. Membership can be renewed once, except for representatives of Public Accountancy. The direct oil incomes cannot be used for specific programs without approval of Security College that owns a technical team. As per Decree 457/PR/MEF/2004, a Provisory Management Board for oil incomes has been established which is responsible for developing instrument for economical and social developments identify, select and approve projects of regional interest, implementation of projects and supervisions. Members of the board include 3 deputies from producer region and two representatives each from civilian society, traditional authorities and state representatives.

The Protected Areas Act, 2003 of South Africa, prioritized protection and conservation of ecologically viable areas, provided for establishment of national registrar of all protected areas, set down national norms and standards for their management, offered scope for intergovernmental and public consultation on matters concerning protected areas, and called for continuation of all national parks. The Act provides for community harvesting of natural resources and community-based natural resource management; insists participation of local authorities in integrated management of protected areas; and provides for overall ministerial oversight, public participation in management planning, and maintenance of community rights registrars for each wildlife park.

B. Project Preparation; Eminent Domain and Compensation:

The element of the Brazilian best practices that was the Ponto Novo project made use of a comprehensive survey in order to establish a baseline and to identify existing residents. This will help the proponent implement the benefit-sharing and compensation programs outlined above effectively, while limiting benefits for those who move to the area later –perhaps as rent-seekers or otherwise. In Urra Project in Columbia, EPM raised an in-house multidisciplinary team for the preparation of its Resettlement Action Plan, but it outsourced the implementation. Agricultural plots were planted in advance so that the PAP could have a new harvest when they arrived in their resettlement area.

In road sector project in China, proper project preparation including analysis of alternative helped in reducing the extent of land to be acquired by 60%. The option selected also helped in increased road safety.

In Chad, a database of the community linked to the pipeline was created using satellite imageries. This allowed the project to understand the community and map their socio-economic status. The data base of the Doba Project is operational. The database helps to identify the land occupied temporarily and / or permanently by the project. It makes it possible to visualize the occupied impact and the extension of the fragmentation of the land. It also helps in determining surfaces of bush, fallow and grounds cultivated in each village (limited villages were superimposed on those produced).This determination allows the classification of the villages according to their degree of impact. Community monitoring programme was developed based on the database and evaluation is carried out every three years

The IFC presentation detailed out three types of Land Acquisition is possible with each of them having different connotations for the seller in terms of his/her need for legal protection. While pure market transaction entails no need for legal protection for the seller because he/she would only accept if he/she is adequately compensated. In case of Negotiated settlement, seller needs legal protection and in the event the negotiation fails expropriation methods are the back up. Acquisition through expropriation too entails the need for legal protection for the seller but it has the inherent risk of unfair compensation and may not solve the problems relating to compulsory acquisition and possible displacement. Besides in such a scenario, there is asymmetry of information and an imposition of easement or rights. The IFC projects shows that while pure market transaction is preferred norm in sectors such as general manufacturing, agribusiness and health and education, in sectors such as oil/gas, mining and power/transport LA is carried out either via negotiated settlements or

expropriation procedures. The responsibility too varies according with private companies being responsible for LA in General manufacturing, agribusiness, health and education. In oil, gas and mining and power/transport private companies are granted concessions.

The Brazilian presentation highlighted the importance of legal and acquired rights of property – a very pertinent issue for many countries conducting R&R. Before the project, many of the affected people had no birth certificates, marriage certificates, records of land ownership, or inheritance rights. In order to guarantee informal rights, acquired by the length of time the generations of the same family have lived in a plot (sometimes decades), the land titles were regularized with no charge to the people as a part of the project. Legal support services were also offered, and improvements to the property were taken into consideration as much as possible, irrespective of the existence of title or deed [note: in Brazil, it take 5 years of residence to obtain an acquired right in an urban setting; 20 years in a rural setting and it takes 3 - 12 months for processing]. A benefit of the program became legal citizenship and land titles for the affected people which otherwise would not have been formalized. The state was then able to offer compensation for both legal and acquired rights to property held by the affected people.

In Brazil, the developer adopted an approach that included ‘monitored compensation’ combined with ‘social subsidy’. The ‘monitored compensation’ (or ‘self-resettlement’) was calculated using either i) the estimated value of a regularized estate including its improvements, or ii) the estimated value of the improvements to a non-regularized estate. If the former was used, no social subsidy was provided. If it was the latter, than the percentile amount of the social subsidy was inversely proportional to the value of the compensation for assets. The social subsidy allowed families to enter the real-estate market and own land, even if they did not formally own land before the resettlement. In this way, the state was able to make resettlement more attractive in a place where most people would prefer monetary compensation. Furthermore, the monitored compensation was considered ‘monitored’ because the subsidy was payable only when it was proven that the money would be used to buy replacement real estate.

In Papua New Guinea, all land acquired so far for mining purposes, have been acquired through negotiation. Similarly in hydro projects in Columbia, compensation amount is negotiated with the affected community. In Canada, compensation package includes ‘fair market value of land’ (determined through market survey of comparable un-affected land), 5% of market value paid as disturbance allowance, property purchase tax compensation, moving costs (for up to 100 km) and reasonable mortgage penalties and legal fees incurred for the transaction. In Peru, compensation is decided on the basis of negotiation and an agreement is signed which again acts as guidelines for disbursement of compensation. C. Community Participation and Benefit Sharing:

Carrying out the project efficiently and effectively relied heavily on active community participation. Brazilian presentation showed that this meant not only communicating at the individual and family level, but recognizing cultural traditions and organizational

forms. Training offered to encourage participation was also helpful in fostering local institutions and greater understanding. But the team became acutely aware of the time requirements of such an approach. An ex-poste analysis supports the expectation that this approach save time, but a social timeline is very different from an engineering / technical timeline (i.e. capacity building especially required more time than was required to physically implement the project). Time and physical space had to be given to local people to express all their emotional grievances.

In Urra Project in Columbia, participation from project affected people (PAP) was sought on even the minute details, e.g. the colour of paint for the new houses. In one community, this meant that five different churches had to be built because five different religions were practiced. As part of benefit sharing, medical and transport services were made available, and even graveyards moved to the new location. Houses were built by the company after public bids were made, and a significant portion of the labour was provided by locals. The company also recognized that there would be a significant environmental impact of the project, therefore 15 percent of the $700 million project cost was dedicated to environmental remediation and mitigation purposes. The resettled non-indigenous also received electricity services

In Papua New Guinea, so far land for mining purpose has been acquired through negotiation. Public hearing is compulsory before issuing new mining lease or renewal of old lease. Date of signing of compensation agreement is regarded as cut off date by both the community as well as project proponent. Community Sustainable Development Plan is prepared to be implemented by Community Project office and to be monitored by a Development Committee. The roles and responsibility of each stakeholder is clearly defined in the decree. One fifth of the total royalty received by provincial or local government from mining is transferred to the community for developmental activities.

In British Columbia, emphasis is more on long term benefits rather than cash compensation. The presentation made by BC Hydro clearly pointed out that since there are always going to be some negative impacts when people are displaced, basic compensation cannot be replaced. BC Hydro for long is not paying compensation to the displaced persons as financial help is not lasting. The company is clear that “you cannot build a relationship based on handing over money”. It is benefit sharing of the profit which helped the company in smooth operations. The amount spent on the community is viewed as investment rather than the cost.

In China, the long term goal of improvement rather than simple rehabilitation is the concept of “resettlement with development.” The guiding principles of this approach are to:

- guarantee resettlers’ rights and ensure smooth implementation of hydro projects - adopt a development approach for resettlement to improve or restore livelihoods - rationally consider the interests of the state, collectives and individuals; - minimize land acquisition and resettlement - harmonize the use of natural resources and environment protection for sustainable

development

In China, as part of benefit sharing, rural connector roads are built to provide benefit to local communities while developing highways,

In Peru, equity is the key to success. The funds are generated by mining companies through voluntary contribution and contribution towards social trust fund apart from taxes and royalties. Peru has a well established mechanism for distribution of mining royalties and cannons. The local government of the district (department) from where the mineral is being extracted gets larger share of the pie than regional government. Districts with higher poverty index, gets higher per capita transfer of royalties and taxes to be used for community welfare programmes.

In Chad, benefit sharing had two pronged approach: (a) dedicated funds for local area development (FACIL); and (b) regional development plan. A law was framed for revenue sharing with details of planning and use of fund by international partners. The approach however is bottom – up. The request is made by the beneficiaries, which through intermediaries goes to technical cell. Technical cell also provides support to beneficiaries.

The Kenyan example of Shompole Community Trust in Masai Mara shows how community can be partnered for sustainable wildlife protection and tourism. Shompole Community Trust representing the interests of the indigenous Masai people is an active stakeholder in the management of community based eco-tourism projects in the Masai Mara region. Protecting the group ranch and improving incomes of the local community through sustainable eco-tourism has been the key objective of this benefit sharing arrangement. The outcomes of this arrangement include improved incomes, better road networks, higher security, enhanced wildlife conservation, and greater harmony between wildlife and people. Some of the direct benefits received by people include health services, education; scholarship for needy students; and water resource management. The spin-off benefits include support for small-medium enterprises set up by women and youth. The impacts of this innovative benefit sharing arrangement have been positive. A proper land-use plan has been adopted by the Masai community with 10,000 hectares earmarked for conservancy. Wildlife numbers have increased by 35 percent over the last since 2001; and the vegetation cover in degraded land has improved. The economic impacts and non-monetary benefits received by the community have been significant.

In South Africa, as new state policy, national government emphasized on restitution of land to those who were forcibly thrown out of their land after June 1913. However, owner cannot change the land use In view this challenge, community agreed to keep the land with the national park authority and benefits were drawn from conservation in form of cash (income through tourism; services, land rehabilitation; and jobs) or in kind (non timber forest produces; grazing access; etc.). Benefits could be drawn only if community has right on natural resources and share in the tourism market. To tackle this issue, community entered into a legal framework for partnership with the private sector called community property association. The CPA Act details out the functioning, reporting and accountability of workers. Clear understanding of roles and responsibility of each partner was the key for successful partnership.

D. Grievance Redressal. Monitoring and Evaluation and Transparency:

In Chad pipeline project, grievance redressal mechanism is the instrument for social balance and is quite formal. Government and Oil Company must respond to any grievance within a stipulated time frame. To ensure proper implementation of environmental and social aspects of the project, Governments of Chad and Cameroun have set up 7 tiers of supervision mechanism which helped them to bring in transparency and continuous monitoring.

In Peru, since source of revenue generation is mining companies, taxes paid by the companies as well as distribution indexes are published. Per capita transfers and expenditures made by local and regional governments are published in their web site. This not only ensures transparency in transaction, but also helps in periodic monitoring of fund utilization.

The salient message from Brazil on this issue was the importance of transparency; the success of a socio-economic survey is directly associated with the transparency of its execution. Before being conducted, the survey and its rules must be publicized, the list of people made available (in case of missing people or discrepancies), and it must be done in way that is easily understood. For instance, where illiteracy is high, it may have to include oral communication.

In Columbia, the monitoring and evaluation component of the Porce II project is what enabled the lessons to emerge. Accurate information on socio-economic issues was essential not only to assess impacts but also for developing the original resettlement plan, hence it was important that social team work very closely with the community. Data collected and monitored from the start allowed for a baseline to be set. This was important for further monitoring and evaluation, including an ex-poste analysis.

In South Africa, CPA has laid out robust monitoring and accounting system and agreed framework for benefit sharing to avoid conflict between stakeholders. Conclusion The importance of a uniform approach on R&R; the need for guidelines for efficient and effective implementation of LA and R&R; the shift in attitude in order to include social costs of projects rather than focusing on higher immediate returns; the benefit of meaningful consultation and collaboration with affected communities; the importance of defining the roles of local government; and of building effective grievance systems. Overall it can be seen that legal framework was amended in all the countries to address the issue of benefit sharing. Government only acts as a monitoring agency. The overarching goal is to alleviate poverty. Poor and in adequate R&R provisions will lead to additional set of impoverished people.