RP486 Arab Republic of Egypt ( Egyptian Natural Gas Holding Company Resettlement Policy Framework for Greater Cairo Natural Gas Connections Project 14 November 2007 TABLE OF CONTENTS LIST OF TABLES AND BOXES..................................................................... II LIST OF ACRONYMS AND ABBREVIATIONS............................................... III GLOSSARY.............................................................................................. IV 1. Introduction................................................................................................ 1 1.1. Proposed Framework ................................................................................ 1 1.2. Objectives of the Framework....................................................................... 2 2. Legislative Framework for Resettlement........................................................ 2 2.1. Government of Egypt Relevant Legislation .................................................. 3 2.1.1. Administrative Authority's Decision Making Responsibilities................. 3 2.1.2. Legal and Administrative Procedures for Transfer of Ownership and 4 Compensation ..................................................................... 2.1.3. Disputes................................................................................. 6 2.1.4. Temporary Expropriation of Real Estate .............................................. 7 2.1.5. Introduction of New Articles to the Law on Property Expropriation for Public Benefit No. 10 of 1990 .......................................................... 8 2.2. World Bank Safeguard Policies ...................................................................... 8 2.3 Gaps between Egyptian regulations and World Bank policies........................................ 9 3. Eligibility Criteria for Affected Persons.......................................................... 12 3.1. Defining Affected Persons ......................................................................... 12 3.2. Eligibility Criteria ................................................................................... 13 4. Methods of Valuation of Affected Assets and Compensation................................ 14 4.1. Asset Valuation ...................................................................................... 14 4.2. Compensation ........................................................................................ 15 5. Entitlement Matrix..................................................................................... 15 6. Resettlement and Compensation Planning...................................................... 25 6.1. Institutional and Organizational Context ................................................. ...... 25 6.2. Proposed Preparation Process ......................................................................... 25 6.2.1. Sub-Project Screening........................................................................ 25 6.2.2. Preparation of Socio-Economic Survey................................................... 25 6.2.3. Preparation of Resettlement Action Plans ................................................ 26 6.3. Sub-Project Appraisal and Approval ...................................................... ...... 26 6.4. Sub-Project Implementation ....................................................................... 27 6.4.1. Sign Compensation Contract and Pay Compensation to the Affected People....... 27 6.4.2. Grievance Redress Mechanisms............................................................... 27 6.5 Vulnerable Groups.................................................................................... 29 6.5.1 Identification of Vulnerable Groups...................................................... 29 6.5.2 Assistance to Vulnerable People.......................................................... 31 6.6. Resettlement Monitoring and Evaluation Arrangement ........................................ 33 6.6.1. Internal Monitoring ........................................................................ 33 6.6.2. External Monitoring and Evaluation...................................................... 33 7. Public Consultation and Disclosure.............................................................. 34 I 8. Budget and Sources of Funding Raps............................................................ 35 REFERENCES........................................................................................... 36 LIST OF TABLES AND BOXES Table 2.3: Comparison of Egyptian regulations with World Bank policies...................... 10 Table 3.2: Criteria for Eligibility (OP 4.12)........................................................... 13 Table 4.1: Replacement Cost for Tangible Assets ................................................... 14 Table 5: Entitlement Matrix for Affected Persons.................................................... 16 Table6.5.2 Assistance to Vulnerable People .......................................................... 31 Table 6.6.2: Verifiable Indicators for Monitoring and Evaluation Implementation of Raps. .. 33 Box 3.1: Possible Losses from Land Acquisition in Rural Areas.................................. 13 II LIST OF ACRONYMS AND ABBREVIATIONS AP Affected Persons ARP Abbreviated Resettlement Plan CDA Community Development Association CAPMAS Central Agency for Public Mobilization and Statistics EA Environmental Assessment EDHS Egyptian Demographic and Health Survey EEAA Egyptian Environmental Affairs Agency EGAS Egyptian Natural Gas Holding Company EIA Environmental Impact Assessment ESA Environmental and Social Assessment ESIAF Environmental and Social Impact Assessment Framework GASCO Egyptian Natural Gas Company GCNGCP Greater Cairo Natural Gas Connections Project IR Involuntary Resettlement LDU Local Development Unit LPG Liquefied Petroleum Gas NG Natural Gas NGO Non Governmental Organization PAF Project Affected Family PAP Project Affected Persons PRS Pressure Reduction Station POTAGASCO The Egyptian Company for LPG distribution RAP Resettlement Action Plan RPF Resettlement Policy Framework SRO Social and Resettlement Officer TOR Terms of Reference WB World Bank Exchange Rate: US$ / L.E. = 5.65 as of September 2007 III GLOSSARY1 Census: Household survey that covers all affected persons irrespective of entitlement or ownership. It provides a complete inventory of all affected persons and their assets. It can be used to minimize fraudulent claims made by people who move into the area affected by the project in the hope of being compensated and/or resettled. Displaced Persons: Persons who are affected by the involuntary taking of land and / or the involuntary restriction of access to legally designated parks and protected areas. Environmental Impact: An effect (both positive and negative) on an environmental resource or value resulting from infrastructure development projects. Environmental and Social Impact Assessment (ESIA): A systematic procedure for enabling the possible environmental and social impacts of development projects to be considered before a decision is made as to whether the project should be given approval to proceed. Involuntary: Actions that may be taken without the displaced person's informed consent or power of choice. Involuntary Resettlement (IR): The unavoidable displacement of people and/or impact on their livelihood, assets and common property resulting from development projects that create the need for rebuilding their livelihood, sources of income and asset bases. Monitoring: The process of repeated observations and measurements of environmental and social quality parameters to assess and enable changes over a period of time. Public Involvement: The dialogue encompassing consultation and communication between a project proponent and the public. It includes dissemination, solicitation and presentation of information Rehabilitation/Resettlement: A term often used to describe the process of reestablishing lifestyles and livelihoods following resettlement. The term is also used to describe construction works that bring a deteriorated structure back to its original conditions. Resettlement Action Plan (RAP): A time-bound action plan with a budget, setting out resettlement strategy, objectives, options, entitlements, actions, approvals, responsibilities, monitoring and evaluation. Social Impact: An effect (both positive and negative) on a social issue resulting from infrastructure development projects 1Sources: http://www.unescap.org, http://www.adb.org, World Bank OP 4.12, and SFD's Operational Manual for the Local Development Program. IV Stakeholders: Those who have an interest in project development and who will be involved in the consultative process, and includes any individual or group affected by, or that believes it is affected by the project; and any individual or group that can plan a significant role in shaping or affecting the project, either positively or negatively, including the host community/population. Vulnerable Groups: Distinct groups of people who might suffer excessively from resettlement effects, such as, the old, the young, the handicapped, the poor, isolated groups and single parents. V 1. INTRODUCTION The Greater Cairo Gas Connections Project is an integral part of the Government's on-going program to connect households and other users to the natural gas network (6 million households over the next 6 years). The project targeted only 400,000 customers in Cairo. The environmental, social, and economic benefits from the Greater Cairo Gas Distribution Extension Project are considerable for beneficiaries. For one, the minimization of the transportation of L.P.G cylinders in congested urban areas as well as the reduction in the burning of fuel oil in industrial and commercial boilers will result in significant positive environmental and safety implications. Moreover, from an economic point-of-view, savings will be made in the handling and distribution of fuel for residential small commercial and industrial consumers. In addition, the monthly payments for natural gas made by the consumers are expected to be much less than what they are currently paying for L.P.G cylinders. As previously noted, the project shall cover two major areas; namely, Cairo and Giza governorates. The total number of customers that are expected to benefit from this project is 400.000. It is not foreseen that any of the activities of the project would result in involuntary resettlement. In fact, and as per the World Bank's OP 4.12, Involuntary Resettlement shall be avoided by all means. However, since the in-depth plan and detailed activities for the project are being finalized, EGAS is proposing herein a resettlement and compensation framework (in line with the World Bank's OP 4.12) to be applied during project implementation in case that the project triggers Involuntary Resettlement. This RPF has been prepared in compliance with the Bank's safeguard policy on involuntary resettlement, as well as the Government of Egypt's relevant laws and policies. 1.1. Proposed Framework It is a widely accepted fact, if left unmitigated, involuntary resettlement under development projects may give rise to economic, social and environmental risks. The purpose of the RPF is to set down the principles for social impact mitigation, as well as clarify the organizational arrangements that may be needed during sub-project preparation and implementation phases. This includes compensating all project affected persons (PAPs) for the loss of lands, properties, and livelihoods resulting from displacement and resettlement, as well as assisting these people in relocation and rehabilitation. The RPF may be triggered whenever any of the project's activities entail the acquisition of land and / or the displacement of people, causing the loss of land, property, assets, access (to land, property, and assets), income, or sources of livelihood. This framework shall cover all the project's activities, and shall apply to all displaced persons regardless of the total number affected, the severity of impact, and whether or not the affected persons have legal title to the land. Since resettlement often affects the most vulnerable and marginalized groups (economically, politically, and socially), the RPF shall be particularly sensitive to the affects which displacement may have on these groups, including the poor, landless, elderly, women, children, ethnic minorities, or persons with specific mental or physical disabilities. 1 Resettlement Policy Framework Final report 14 November 2007 1.2. Objectives of the Framework The objectives of this framework correspond to those of the WB policy on Involuntary Resettlement, namely: · To avoid or minimize (whenever possible) involuntary resettlement and land acquisition through design efforts. · If involuntary resettlement and land acquisition is unavoidable, to execute resettlement and compensation activities as sustainable development programs, whereby sufficient investment resources are provided to give the displaced persons an opportunity to share in project benefits. Displaced and compensated persons shall be meaningfully consulted and given opportunities to participate in planning and implementing resettlement plans. · To assist displaced persons in their efforts to improve their livelihoods and standards of living or at least to restore them to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. Since some of the project's physical components may result in involuntary resettlement/ land acquisition, OP 4.12 on Involuntary Resettlement may need to be triggered. A resettlement Policy Framework (RPF) will be the instrument implement should this issue arise. Since the nature and extent of land acquisition/resettlement within the various sub-projects is unknown at the time of appraisal, the key purpose of the RPF is to establish resettlement objectives, principles, organizational arrangements and mechanisms for any resettlement activities that may or may be necessary as a result of project activities. When the exact extent of land acquisition becomes known during the implementation phase, site specific Resettlement Plans (RPs) or abbreviated RPs will be prepared, depending on the scale and severity of impacts. The resettlement process should be finalized prior to the commencement of any physical works. 2. LEGISLATIVE FRAMEWORK FOR RESETTLEMENT Resettlement and land acquisition issues under the proposed Project and subsequent subprojects will be addressed under the guidance of the laws governing the Arab Republic of Egypt to this regard and the World Bank's OP 4.12. The RPF represents the reference to be used in managing land acquisition issues and addressing the involuntary resettlement and displacement of people related to WB financed projects. The SFD shall be committed to complying with the national and WB laws and policies and to any future amendments to them. 2 Resettlement Policy Framework Final report 14 November 2007 2.1. Government of Egypt Relevant Legislation It is the Government of Egypt's policy to pay compensation or offer assistance to people whose lands and properties are affected by projects undertaken by the Government. This section pertains to the means, causes, and the competent authorities entrusted with the implementation of the provisions and rules of the administrative law, civil law, in addition to the law related to the expropriation of private property for public interest. In addition, this section also covers the restrictions, the conditions of the legality of procedures applied by the administration at its disposal, and the consequences of property expropriation, in addition to the legal procedures for the possession of private property. 2.1.1. Administrative Authority's Decision Making Responsibilities The main objective of the state, represented by its executive authority through the issuance of administrative decisions for the public benefit, is to achieve public interest. The state (administrative authority) uses various means to exercise this diversified activity that is readily perceived in the administrative affairs and reflected in the legal affairs. In accordance with Article 34 of the Constitution: "Private ownership shall be safeguarded and may not be placed under sequestration except in the cases defined by law and in accordance with a judicial decision. It may not be expropriated except for the general good and against a fair compensation as defined by law. The right of inheritance shall be guaranteed in it." According to this article, it is understood that procedures for private property expropriation are considered to be exceptional. The competent jurisdiction shall be entitled to take cognizance of the lawsuits raised by individuals against the administration for appropriate compensations. Other relevant laws governing expropriation and consequent compensation procedures include: · Law 557/54, which was later amended by Law 252/60 and Law 13/162, lays down the provisions pertaining to the expropriation of real estate property for public benefit and improvement, · Law No. 27 of 1956, which stipulates the provisions for expropriation of districts for re-planning, upgrading, and improvement, and the amended and comprehensive Law No.10 of 1990 on the expropriation of real estate for public interest. The general provisions guiding expropriation of private property (according to Law 577/54, Law No. 27 of 1956, Law No. 252 of the year 1960, and Law 577/54) include the following: 1 Property expropriation shall be only on tangible real estate property, there shall be no expropriation of movable possessions. 2 Applicable only to property privately owned by individuals, thus, public property is excluded from the procedures. 3 The expropriation shall include land and constructions (structures). 4 The purpose of expropriation shall only be for realizing public interest. 5 The administrative authority has the right to assess the circumstances related to expropriation as well as the authority for implementation of property expropriation, which is justifiable by the objective of achieving public benefit. The administrative authority may not be challenged or judged on the grounds that it could have chosen more 3 Resettlement Policy Framework Final report 14 November 2007 appropriate real estate property to achieve public benefit than the one that it has already chosen. 6 The administration shall estimate the area it sees necessary for the establishment of a project. This right shall not be only restricted to the real estate property required for the project; but the legislator empowered the administration to also include expropriated property. According to Article 23 of Law 577/1954: "If the purpose of the property expropriation is the establishment of a squares, streets, or their expansion, modification, demarcation, or the establishment of a new district, or for its improvement/ upgrading or beautification, or for any health related matter; property expropriation may include, in addition to the real-estate property needed for the project, any other real-estate property which the administration in charge sees to be necessary to achieve the project's objective or any other property whose current state (whether in size or form) is not consistent with the required improvement. Moreover, the first article of Law No. 27 of 1956 allows for the expropriation of districts for their improvement, upgrading, re-planning, and reconstruction. Article 24 of Law 577/54 also stipulates that in case only partial expropriation of real estate property is required, and the remaining un-expropriated part will not be of benefit to the owner; the owner shall be given the right to submit a request within 30 days (beginning from the date of final disclosure of the list of the expropriated property) for the purchase of the entire area. It should be noted that the new law has not restricted the right to request the purchase the remaining un-expropriated portion of real estate to buildings only, but it was also extended to include land as well. Law No. 252 of the year 1960, amended by Law 577/54 was promulgated to equilibrate the rights and guarantees for individuals with the rights of the state in expropriating private property. Moreover, this law has stipulated that the assessment of public benefit / interest, which justifies property expropriation, shall be emanated in all cases by a Presidential Decree, while previously it was made by the competent minister. 2.1.2. Legal and Administrative Procedures for Transfer of Ownership and Compensation The procedures taken to this regard are administrative, with no judicial interference except in the assessment of the compensation amount. Article 1 of Law 252/60 (amended by Law 577/54) states that the determination of public benefit for the expropriation of private real estate property is subject to Presidential Decree. On the other hand, according to Article 2 of Law 27/1956, the determination of public interest for the expropriation of districts for re-planning and upgrading is subject to a Decree from the Cabinet of. Enclosed with the decree is: · A memorandum that demonstrates that the required project shall be considered of public benefit / interest (to be published with the Decree in an official newspaper and in relevant local administrative units). · A map delineating the project scope. · Two weeks following the publication and promulgation, the official commissioned to 4 Resettlement Policy Framework Final report 14 November 2007 the expropriation property procedures is permitted to enter into the real estates to perform the technical and surveying operations and all the necessary demarcations of the expropriated real estate. The steps for ownership transfer are highlighted below: 1 Preparation of a census of all property: The census shall be performed by commissions which consist of a delegate of the entity commissioned to perform the expropriation (i.e the Governorate, Ministry of Agriculture, etc.) and one of the local officials from the Governorate. A registered notice shall be sent to notify the concerned person. All owners and those with rights or entitlements to the expropriated property shall meet up with the commission in the project area during the census process in order to guide the commission members with regards to their property rights. The commission shall report the minutes of the procedures, which shall include all property and their owner names and addresses. The members of the commission and the owners shall sign the census report. If anyone refuses to sign, this will be noted in the minutes of the session by justifying the reason for refusal. Entering the expropriated properties from then on shall be subject to the notification of the concerned person. 2 Preparation of statements and evacuation warnings: The expropriating entity shall prepare statements with the number and types of property that shall be expropriated, their size, location, owner's names and addresses, and compensation values (as per the census report). These statements shall be published in an official newspaper. The owners and tenants shall be warned that they must evacuate the property within a period of maximum 5 months. The owners shall be given a period of 30 days (from the date of submission of the statements) to present their complaints or grievances regarding the data in the statement. If the complaints were not submitted during this 30-day period, the data included in the statements shall be considered conclusive and shall not be subject to any litigation or claim, and in this case the compensation amounts indicated in the statements shall be sent to the identified owners. 3 Transfer of ownership: For those owners with no complains or contestations, the transfer of ownership is simply made by having them sign specific forms for ownership transfer. For property which the owners have not signed the proper forms, the competent minister shall emanate a decision to expropriate the property. The forms and the Ministerial decrees shall then be deposited in the relevant Notary Office. This deposit regarding the real estates shall generate the effects caused by the declaration of the sale contract. According to it, the property shall be transferred to the administrative authority that expropriates the property, and the rights incumbent on the real estates shall be transferred to the compensation amounts. 4 Compensation assessment: Property expropriation shall only be made against a fair compensation in accordance to constitutional provisions. The legislator has put forth some principles which should be taken into consideration with regards to compensation assessment: a. The compensation assessment for property expropriation shall not include structures, plants / crops, improvements / additions, or tenant agreements if it has been proved that the aforementioned acts were performed in order to acquire higher compensation. The legislator has provisioned that every act taken to this regard, after the publication of the decision for expropriation for public benefit in the official newspaper, shall be considered as an act performed for increasing the compensation value. Accordingly, these acts should be ruled out in the assessment of the compensation amount (Article 25: Law No. 577 of 1954, and Article 7: Law No. 27 of 1956). b. If the compensation amount for the un-expropriated part, in projects other than urban planning, increases or decreases (due to activities causing general public benefit), the increase or decrease in amount should be taken into consideration so that the amount to be added or reduced shall not exceed 50% of the compensation value of the expropriated property (Article 5 Resettlement Policy Framework Final report 14 November 2007 19: Law No. 577 of 1954). c. If the value of the property subject to expropriation for the upgrading or re-planning of districts /cities is increased as a result of the implementation of a public benefit project, the increase in value shall not be calculated in the compensation assessment if the property expropriation is performed within 5 years from the date of implementation in the previous project (Article 20: Law No. 477 of 1954). d. For real estate subject to improvement due to public benefit works (district/city re- planning and upgrading projects), the owners shall be obliged to pay for the improvements, provided that the payment does not exceed 50% of the actual expenses for establishing or expanding the street or square which resulted in the improvement. This provision shall also be applicable if only part of the property within the district/city re-planning/upgrading projects is expropriated, and the authority in charge has deemed that that keeping part of the real estate by the owner does not conflict with the purpose of the intended project. The assessment of the aforementioned charges made by the authority in charge of organizing affairs shall not be subject to any appeal (Law No. 577 of 1954). In order to avoid delays, which may prevent owners from acquiring their compensation in due, time, Law No. 14 of 1962 has provided for a new provision in Article 21', which states that "Half of the value of the expropriated property that has entered into the improvements areas shall be disbursed, while the second half of the value shall be deposited in the trust funds of the competent authority, until the owner submits a certificate issued from the competent authority that demonstrates the payment in return for the improvements made to the property. 2.1.3. Disputes The procedures for expropriation are administrative by nature and usually rapidly implemented. Accordingly, the abrogation proceedings, compensation disputes, and all actions related to the expropriation property will not stop the expropriation procedures nor prevent its consequences; rather, the owner's right for compensation is addressed (Article 26: Law No. 577 of 1954). However, the rapidity of these procedures should not prevent the owners and concerned persons from claiming and ensuring their rights. Accordingly, the legislator has distinguished two different the redress mechanism: 1 For compensations not related to the compensation assessment: Such as those pertaining to the actual right of the expropriation. In this case, the authority in charge of the expropriation process shall be responsible for investigating these disputes in order to pay the due compensation value (Article 11: Law No. 11 of 1954 and Law No. 11 of 1956). 2 Disputes over compensation assessment: These disputes are subject to legal jurisdiction as follows: The authority in charge of the expropriation procedures shall refer the disputes over the compensation assessment submitted to court. The court shall examine the complaint quickly and its judgment shall be conclusive. 6 Resettlement Policy Framework Final report 14 November 2007 2.1.4. Temporary Expropriation of Real Estate The right of the public authority to expropriate needed real estate property also includes the right to temporarily occupy / take over this privately owned property. Law No. 577 of 1954, Law No. 27 of 1956, and the new Law No. 10 of 1990 pertaining to property expropriation, include provisions regarding temporarily occupying property: Summarized below are the legal provisions for two particular cases: 1. Occupation of Real Estate Property Prior to Expropriation: If the administration resorts to interim or temporary occupation of privately owned real estate, the time frame should be identified. However, if the temporary occupation is conclusive, the administration shall resort to the regular expropriation procedures (mentioned above). In order to save time, the new legislation has allowed the administration to occupy prior to the completion of the expropriation procedures (Article 16: Law No. 577 of 1954). According to the amendment of Law No. 252 of 1960, "except in emergencies and hasty cases that require the occupation of real estates to perform necessary reparation works, upgrading, and other work, temporary occupation of real estate for public benefit is subject to a Presidential Decree (to be published in an official newspaper). The legislator has included some provisions guiding this case: 1 The administration cannot resort to this before the issuance of the decision that the expropriation of this specific property is considered to be of public benefit. 2 The real estate owner has the right to compensation for not being able to get access or us his / her property, starting from the date of actual occupation until the payment of the due compensation as a result of the property expropriation. 3 The owner of the real estate has the right to dispute / contest the value of the assessed compensation, for preventing him/ her from using or gaining access to his / her property, through the same process for grievance redress on the assessed compensation for property expropriation. In this case, it will not be allowed to remove any structures or buildings (which have been occupied) until the re-estimation of value has been conclusively made. 4 In the case of expropriation of districts, the property and buildings will not be expropriated until alternative dwellings have been provided for those who lost their homes. 5 Temporary Occupation: If the administration needs to manage a real estates for an interim / temporary period that does not justify the expropriation of the property, and accordingly the administration takes over only the management while the ownership remains with its official owner. · Summarized below are the legal provisions for two particular cases: · Necessity (Hastiness / Rapidity): As stated in Article 17 "...in case of sinking, or severing of a bridge, or the outbreak of an epidemic, and in all emergency cases, it is permissible to temporarily take over / occupy the needed real estates to perform reparation works, prevention, or other kinds of work". · Public Benefit Project: Law No. 577 of 1954 states that the occupation decision in both cases aforementioned shall be issued by the "Director" or the Governor (Article 17), while Article 2 of the previous law concerning the occupation decisions identified the Governor as the person in charge issuing temporary occupation decisions in case of emergency / hastiness. In any other case, the aforementioned law designates a Presidential Decree for the implementation of temporary occupation. · Procedures: Real estate temporary occupation only requires that a representative from the competent entity to identify the type f real estate, size, and condition upon occupation. If this is done, the competent entity is then able to occupy the real estates without having to take other measures." To simplify the procedures to the previous figure, that could be justified in the occupation case for emergency or rapidity. · Compensation: Within a week of the occupation date, the competent authority shall determine the compensation value for the concerned persons / owners in return for losing access and use 7 Resettlement Policy Framework Final report 14 November 2007 to their property temporarily. The owners shall have the right to dispute the assessed compensation as previously noted. · Occupation Period: The maximum period for temporary occupation is 3 years, beginning from the actual occupation date. If the administration deemed it necessary to extend the occupation period for over 3 years, this may be done through agreement with the owner. However, if no agreement is reached the property shall be expropriated and the administration shall be responsible for returning the property to the owner in its original status, at the time of occupation, along with compensation for any of spoilage or decrease in its value. 2.1.5. Introduction of New Articles to the Law on Property Expropriation for Public Benefit No. 10 of 1990 The legislator deemed it necessary to amend the law to reflect new developments that have occurred, beginning from the administrative decentralization process in the local governance system and the transformation of many public entities into separate public bodies, each being a separate legal entity, independent from the state, and a budget, independent from the public budget. This law was promulgated when the Egyptian Public Entity for Survey, one of the subsidiary departments for the Ministry of Water Resources and Irrigation, was the competent authority for performing the expropriation procedures. The required that the Entity allocate the compensations values in its budget. The new amendment of this law states that the authority requesting the property expropriation shall be responsible for the payment of compensation value and in representing itself in legal litigations before the jurisdiction. Article 2 of the Law No. 10 of 1990 has identified public benefit activities to be: Construction of roads, streets, squares, or their broadening, modification, paving, or the constructing of entirely new districts. Sanitary drainage and water projects Irrigation and drainage projects Electricity / power projects Construction of bridges and the surface paths (slides, lower passages, or modifying them) Transportation projects Urban / rural planning and improvement of infrastructure All activities that are considered to be of public benefit as per any other law Other public benefit activities may be added as per Cabinet of Ministries Decree(s) The decision ruling public benefit activities shall be in accordance with a Presidential decree and shall have a memorandum of the project enclosed. The new law has introduced / specified, through Article 6, the members of the compensation assessment commission. The commission is made at the Governorate level, upon a Decree by the Minister of Water Resources and Irrigation, and consisting of a delegate from the Ministry's Surveying Body (as President), a delegate from the Agricultural Directorate, a delegate from the Housing and Utilities Directorate, and a delegate from the Real Estate Taxes Directorate in the Governorate. The compensation shall be estimated according to the prevailing market prices at the time of the issuance of the Decree for Expropriation. 2.2. World Bank Safeguard Policies The WB's policy on involuntary resettlement and the compensation of affected persons is clearly spelled out under the Bank's operational safeguard policy (OP) # 4.12. 8 Resettlement Policy Framework Final report 14 November 2007 "For sector investment operations that may involve involuntary resettlement, the Bank requires that the project implementing agency screen sub-projects to be financed by the Bank to ensure their consistency with [OP 4.12]. For these operations, the borrower submits, prior to appraisal, a resettlement policy framework that conforms to this [OP 4.12]. The framework also estimates, to the extent feasible, the total population to be displaced and the overall resettlement costs." 2.3. Gaps between Egyptian Regulations and World Bank Policies The gaps between Egyptian regulations and World Bank policies are summarized in the following table : 9 Resettlement Policy Framework Final report 14 November 2007 Table 2.3:Comparison of Egyptian regulations with World Bank policies Topic Egyptian legislative requirements World Bank policy requirement Practical Implication Calculation of According to prevailing prices in the affected Full replacement cost This issue is crucial since all previous Egyptian Compensation area and assessed by a specialized committee practices of valuation have been substantially for that purpose below the market rate due to: Lack of valuation experience in ESA No real market rate is defined due to taxes and fees charged on properties Squatters Not included in the legislation Are to be provided resettlement assistance (but This has to be clearly considered in any (Applied cases for resettlements revealed that no compensation for land) resettlement action and offered options squatters have been compensated as a result of whether through alternative shelters or fair political sensitivity) compensation that enables them to find other shelter. Resettlement Affected occupants who are physically Affected people who are physically displaced Affected people should be offered various displaced are to be provided with another are to be provided with residential housing, or options for resettlements (not only one option) residential housing. They do not have the housing sites, or, as required, agricultural sites at least equivalent to the old property or site. rights to object to the location of the at least equivalent to the old site. The affected people should be supported also resettlement, but only the housing suitability in Preference is to be given to land-based with a sort of soft-loan that compensates the terms of area, design or relevant issues. Their resettlement for displaced persons whose difference in value between the old and new objection is submitted within 15 days after livelihoods are land-based. property. receiving the notification of the new housing, The resettlement would be based on RAP in to a dedicated committee for that purpose, case the affected people is 200 or more while Both RAP and ARP should be followed in which should respond within one month. for less than 200, an ARP would be conducted relevant cases. Resettlement assistance Not included Affected people are to be offered support after This assistance should be included in any displacement, for a transition period. resettlement project in Natural Gas through the governorate Vulnerable Groups Not Included Particular attention to be paid to vulnerable The PMU and Upgrading unit in each informal groups, especially those below the poverty line, settlement should pay considerable attention the landless, the elderly, women and children, for those groups and give them priority in indigenous peoples, ethnic minorities. selecting resettlement options and receiving financial support. 10 Resettlement Policy Framework Final report 14 November 2007 Topic Egyptian legislative requirements World Bank policy requirement Practical Implication Information and Displaced persons are provided timely and Displaced persons and their communities are Affected groups should get access to full Consultation relevant information. provided timely and relevant information, information about the resettlement process and Not consulted on resettlement options consulted on resettlement options, and offered options for compensation. Not able to participate in planning, opportunities to participate in planning, Participatory planning and decision making implementing and monitoring resettlement implementing, and monitoring resettlement. should be applied in resettlement options and compensation Grievances Specialized committees for that purpose and Appropriate and accessible grievance There is a need for ensuring that affected time mechanisms to be established. groups are offered the direct channel for One month to object to the decision of grievance and receive redress in proper time resettlement prior to resettlement. One month to object to the decision of resettlement The receiving of full compensation should be Four months to object to the compensation prior to resettlement. value Source: Resettlement Policy Framework, Alexandria Governorate, December 2006 11 Resettlement Policy Framework Final report 14 November 2007 3. ELIGIBILITY CRITERIA FOR AFFECTED PERSONS 3.1. Defining Affected Persons Affected persons (AP) or project affected persons (PAPs) are defined in this policy framework as individuals who may be subjected to adverse economic, social, or cultural impacts by the WB's assisted sub-projects. These impacts may constitute anything from the loss of physical assets such as land, farm lands, crops, commercial properties, homes, personal belongings, sources of income, and cultural / historical / religious sites, to nonphysical assets such as social capital and cultural networks and activities. Moreover, adverse impacts also include the loss of access to the physical and non-physical assets and the involuntary restriction of access to legally designated parks and protected areas. Box 2 highlights some of the key losses that may arise from land acquisition. Box 3.1: Possible Losses from Land Acquisition in Rural Areas Land Agricultural land (rented or owned) Access to land Structures Houses or living quarters (rented or owned) Other physical structures (rented or owned) Income Income from crops Income from wage earnings Income from fishing areas Income from affected business Access to formal employment opportunities Communal2 Public Schools Public Hospitals Markets Community centers Cemeteries Social capital: networks, activities, relationships Religious and Cultural3 Religious shrines Worship areas (mosque, church, synagogue) Cultural, historical, sites 2The sub-projects should not be permitted to infringe on or damage in any way public cemeteries or private graveyards or graves physical assets. If extremely necessary, such cases shall be subject to the laws of the Government of Egypt to this regard. 12 Resettlement Policy Framework Final report 14 November 2007 Environmental Access to natural resources Negative environmental impacts resulting from land acquisition or from the project itself 3.2 Eligibility Criteria All APs who suffer a complete or partial loss of assets or access to assets shall be eligible for some kind of assistance, according to their legal rights to the land, if it can be proven that they occupied the land before the claim cut-off date. The Bank OP4.12 specifically proposes three general categories for eligibility, as illustrated in the table below: Table 3.2: Criteria for Eligibility (OP 4.12) Displacement Category Entitlement Individuals who have formal legal Compensation for loss in land and assets at full rights to land (including replacement cost. customary and traditional rights In case of physical relocation, provide assistance during recognized under the laws of relocation (i.e. moving allowances) and residential Egypt) housing and / or agricultural sites with productive and location advantages equivalent to the lost sites. Support after displacement, until livelihoods and standards of living are restored to pre-displacement levels. Development assistance in addition to compensation measures (i.e. land preparation, credit facilities, training, job opportunities). Individuals who do not have Compensation for loss in land and assets at full formal legal rights to land, but replacement cost. have a claim to such land or In case of physical relocation, provide assistance during assets (provided that such claims relocation (i.e. moving allowances) and residential are recognized under Egyptian housing and / or agricultural sites with productive and laws or become recognized locational advantages equivalent to the lost sites. through a process identified in the Support after displacement, until livelihoods and resettlement plan) standards of living are restored to pre-displacement levels. Development assistance in addition to compensation measures (i.e. land preparation, credit facilities, training, job opportunities). Individuals who have no Resettlement assistance as appropriate (i.e. land, assets, recognizable legal right or claim cash, employment, etc.). to the land they are occupying (i.e. squatter settlements, disputed ownership). 3The sub-projects should not be permitted to infringe on or damage in any way religious or cultural physical assets. If extremely necessary, such cases shall be subject to the laws of the Government of Egypt to this regard. 13 Resettlement Policy Framework Final report 14 November 2007 In addition, all individuals in possession of properties (i.e. land, houses, structures) that may be adversely affected by any of the sub-projects' activities (i.e. construction, rehabilitation, etc.) shall also be eligible for some sort of compensation which shall be identified in the resettlement plan depending on the type of damage. 4. METHODS OF VALUATION OF AFFECTED ASSETS AND COMPENSATION 4.1. Asset Valuation The valuation of losses in physical assets will be carried out by assessing the market value of the assets, if known, and estimating the replacement cost. Replacement cost is simply calculated as the cost of replacing the lost assets plus any transaction costs associated with brining the asset to pre-displacement value. Replacement cost will differ depending on the type of asset, as illustrated in the table below. Table 4.1: Replacement Cost for Tangible Assets Asset Replacement Cost Agricultural Land Equals the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. Urban Land Equals the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. Houses / Other Equals the market cost of the materials to build a replacement Structures structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. Source: WB OP 4.12 For intangible losses that can not easily be valued in monetary terms (i.e. access to employment opportunities, public services, natural resources, social capital), the subprojects should attempt to establish access to equivalent resources and earning opportunities that are acceptable to the PAPs. 14 Resettlement Policy Framework Final report 14 November 2007 4.2. Compensation Compensation will be provided to all individuals whose assets or access to assets is severely affected or damaged, as a consequence of land acquisition or any other activities undertaken by the sub-projects. The compensation for the loss of physical and nonphysical assets will vary depending on the type of loss, severity of the loss, and eligibility of the APs. Compensation may come in the form of cash compensation, in-kind compensation, and/or assistance. All PAPs will be entitled to monetary compensation at replacement cost, at market value (at the entitlement cut-off date) for affected tangible assets. Another option may be in-kind compensation where the affected assets would be replaced with an asset of similar size, value, and quality. The decision on which type of compensation is used should be jointly agreed upon between the sub-project staff and the APs and shall be subject to the availability of replaceable assets. Moreover, development and resettlement transitional assistance needed to restore the livelihood and standard of living of PAPs under the subproject to pre-project levels shall also be part of the compensation component of any resettlement plan (i.e. short-term jobs, subsistence support, moving allowance, salary maintenance, food assistance, etc.). It should be noted here that compensation for losses in communal property shall only be in-kind for the community as a whole, and shall take the form of reconstruction of the affected or damaged facility (i.e. public school buildings, markets, etc.) to - at least - the same standard it was on prior to the project's implementation. 5. ENTITLEMENT MATRIX Each RAP should develop a resettlement matrix that identifies the expected negative impacts from the sub-project, the eligible persons for compensation, and the compensation policy that is to be applied. Since the detailed activities under this project have not yet been specifically identified, the following entitlements matrix may serve as a generic tool for identifying the possible losses arising from the expected sub-projects and the respective entitlement benefits of the PAPs. 15 Resettlement Policy Framework Final report 14 November 2007 Table 5: Entitlement Matrix for Affected Persons Type of Losses Level of Impact Entitled Person(s) Compensation Policy & Standards Implementation Issues Agricultural Land Loss of arable Permanent Farmers / Individuals · Provide cash compensation at · A list of available arable and grazing (complete or who have formal legal replacement cost for the lost land4 plus and grazing land in each agricultural partial) loss of ownership rights to the cost of preparing the land to levels affected commune land or access arable and grazing land similar to those of the affected land, · A list of PAP and entitled to it land located in the plus the cost of any registration and persons project site transfer taxes. · Consultations and formal · Provide cash compensation for loss of agreement with PAPs on crops or trees at replacement cost. type of compensation (cash or in-kind) Loss of arable Permanent Farmers / Individuals · Provide development and transitional · If available and requested and grazing (complete or who do not have formal assistance in locating new replacement by the PAPs and agreed agricultural partial) loss of legal ownership rights lease land. to by the project and land or access arable and grazing to land but have · Provide cash compensation for loss of concerned authorities: to it land located in the temporary or leasing crops or trees at replacement cost. provide equivalent land project site rights nearby, of similar size, value, and quality · In case of relocation, 4Calculated at entitlement cut-off date. 16 Resettlement Policy Framework Final report 14 November 2007 Loss of arable Permanent Farmers / Individuals · No compensation for land. provide assistance to and grazing (complete or who do not have any · Provide landless PAPs with farmers during and after agricultural partial) loss of recognizable legal right resettlement assistance in securing the relocation process land or access arable and grazing or claim to the land temporary or lease rights to replacement · Provision of assistance to to it land located in the land farmers to develop new project site · Provide cash compensation for loss of crops and improve crops or trees at replacement cost. production for both crops and livestock · Poor and vulnerable PAPs (including the landless) will not be displaced until replacement land is provided Type of Losses Level of Impact Entitled Person(s) Compensation Policy & Standards Implementation Issues Loss of arable Temporary5 Farmers / Individuals · No compensation for land if returned to · If the temporary loss and grazing (complete or who have formal legal owner in less than one year. continues for more than agricultural partial) loss of all ownership rights to · Provide cash compensation equivalent one year, PAPs will be land or access or part of arable land to the replacement cost at market price given a choice of either to it and grazing land of renting the land during the temporary continuing with the located in the use. temporary arrangements, project site · Provide cash compensation for loss of or selling the affected crops or trees at replacement cost and land to the project at full compensation for loss of net income replacement cost at from subsequent crops that cannot be current market value planted for the duration of the lease. · Provision of development assistance to enable Loss of arable Temporary Farmers / Individuals · No compensation for land if returned to farmers / land owners to and grazing (complete or who do not have formal owner in less than one year. restore land to its agricultural partial) loss of all legal ownership rights · Provide cash compensation equivalent previous condition or 5Temporary here refers to a period of up to 3 year maximum (in conformance to the Government of Egypt's Legislation). 17 Resettlement Policy Framework Final report 14 November 2007 land or access or part of arable to land but have to the replacement cost at market price better quality by to it and grazing land temporary or leasing of renting the land during the temporary providing measures to located in the rights use. improve land quality in project site · Provide cash compensation for loss of cases of land being crops or trees at replacement cost and adversely affected. compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease. Loss of arable Temporary Farmers / Individuals · No compensation for land if returned to · Provision of development and grazing (complete or who do not have any owner in less than one year. and resettlement agricultural partial) loss of all recognizable legal right · Provide cash compensation for loss of assistance to landless land or access or part of arable or claim to the land crops or trees at replacement cost. PAPs with no legal rights. to it and grazing land located in the project site Type of Losses Level of Impact Entitled Person(s) Compensation Policy & Standards Implementation Issues Urban Land (Residential and /or Commercial) Loss of urban Permanent Individuals who have · Provide cash compensation at · A list of available non- residential or (complete or formal legal ownership replacement cost of land of equal size arable land in each commercial partial) loss of rights to land and use, with similar or improved affected commune non-arable land urban residential or public infrastructure facilities and · A list of PAP and entitled or access to it commercial non- services and located in the vicinity of persons arable land the affected land, plus the cost of any · Consultations and formal registration and transfer taxes. agreement with PAPs on · In the case that there are structures on type of compensation the land, provide cash compensation at (cash or in-kind) replacement cost for the materials used · If available and requested to rebuild the structures or to partially by the PAPs and agreed repair an affected structure. to by the project and 18 Resettlement Policy Framework Final report 14 November 2007 Loss of urban Permanent Individuals who do not · In the case that there are structures on concerned authorities: residential or (complete or have formal legal the land which have been built by the provide equivalent land commercial partial) loss of ownership rights to users, provide cash compensation at nearby, of similar size, non-arable land urban residential or land but have replacement cost for the materials used value, and quality or access to it commercial non- temporary or leasing to rebuild the structures or to partially · Provision of development arable land rights repair an affected structure. and resettlement · Provide development and transitional assistance, mainly in the assistance in locating new replacement form of transition lease land allowances for severely affected PAPs (transition Loss of urban Permanent Individuals who do not · Provide no compensation for land. subsistence allowance for residential or (complete or have any recognizable · In the case that there are structures on food, moving incentive commercial partial) loss of legal right or claim to the land which have been built by the allowance, assistance in non-arable land urban residential or the land users, provide cash compensation at locating new residential or access to it commercial non- replacement cost for the materials used or commercial leasing, arable land to rebuild the structures or to partially and income transition repair an affected structure. allowance if businesses · Provide landless PAPs with are affected). resettlement and transitional assistance in securing alternative commercial or residential land and to restore their livelihoods. 19 Resettlement Policy Framework Final report 14 November 2007 Type of Losses Level of Impact Entitled Person(s) Compensation Policy Implementation Issues Loss of urban Temporary Individuals who have · No compensation for land if returned to · If the temporary loss residential or (complete or formal legal ownership owner in less than one year. continues for more than commercial partial) loss of rights to land · Provide cash compensation equivalent one year, PAPs will be non-arable land urban residential or to the replacement cost at market price given a choice of either or access to it commercial non- of renting the land during the temporary continuing with the arable land use temporary arrangements, · Provide cash compensation for loss of or selling the affected crops, trees, or structures at replacement land to the project at full cost replacement cost at current market value Loss of urban Temporary Individuals who do not · No compensation for land if returned to · Provision of assistance to residential or (complete or have formal legal owner in less than one year. enable the land users commercial partial) loss of ownership rights to · Provide cash compensation equivalent owners to restore land to non-arable land urban residential or land but have to the replacement cost at market price its pre-subproject or access to it commercial non- temporary or leasing of renting the land during the temporary condition by providing arable land rights use measures to improve land · Provide cash compensation for loss of quality in cases where crops, trees, or structures at replacement land is adversely affected cost Loss of urban Temporary Individuals who do not · No compensation for land if returned to · Provision of resettlement residential or (complete or have any recognizable owner in less than one year. assistance to landless commercial partial) loss of legal right or claim to · Provide cash compensation for loss of PAPs with no legal rights non-arable land urban residential or the land crops, trees, or structures at replacement or access to it commercial non- cost arable land 20 Resettlement Policy Framework Final report 14 November 2007 Structures or Buildings (Commercial, Business, Industrial, or Residential) Loss of Permanent Individuals who have · Provide cash compensation at · A list of available structures or (complete or formal legal ownership replacement cost which equals the structures in each affected access to them partial) loss of rights to the structures market cost of materials used to build a commune structures replacement structure with similar area · A list of PAP and entitled and quality, or to repair a partially persons affected structure, plus the cost of · Consultations and formal transporting building materials to the agreement with PAPs on construction site, plus the cost of any type of compensation labor and contractors' fees, plus the cost (cash or in-kind, i.e of any registration and transfer taxes. relocation) Type of Losses Level of Impact Entitled Person(s) Compensation Policy Implementation Issues Loss of Permanent Individuals who do not · Provide assistance in moving and · A 3-months notice - at structures or (complete or have formal legal finding similar and affordable rental least - to be given to the access to them partial) loss of ownership rights to accommodation (this may include tenants. urban residential or land but have moving allowance and rental allowance commercial non- temporary or leasing for a transitional period). arable land rights (tenants) Loss of Permanent Individuals who do not · Provide cash compensation at · The Environmental and structures or (complete or have any recognizable replacement cost for the structures if Social Officer may look access to them partial) loss of legal right or claim to they were built by the users. into the possibilities of urban residential or the land (squatters and · Provide assistance in moving and formalizing the structures commercial non- persons in ownership finding similar and affordable rental following their repair. arable land dispute) accommodation (this may include moving allowance and rental allowance for a transitional period). 21 Resettlement Policy Framework Final report 14 November 2007 Standing Crops, Trees, and Plants Loss of Permanent Farmers or individuals · Provide cash compensation for loss of · A comparative list of the standing crops, (complete or who cultivate the land crops, trees, or plants at replacement prices of agricultural trees, or plants partial) loss of and who have formal cost. products in local markets. or access to standing legal ownership rights · A list of tree and plant them crops, trees, or to the land on which the species in the commune plants crops are area. · The project activities Loss of Permanent Farmers or individuals · Provide cash compensation for loss of should take into standing crops, (complete or who do not have formal crops, trees, or plants at replacement consideration the trees, or plants partial) loss of legal ownership rights cost. cropping patterns and or access to standing to land on which the seasons in order to avoid them crops, trees, or crops are but have partial or complete loss ­ plants temporary or leasing if possible. rights (tenants) Loss of Permanent Farmers or individuals · Provide cash compensation for loss of standing crops, (complete or who do not have any crops, trees, or plants at replacement trees, or plants partial) loss of recognizable legal right cost. or access to standing crops, or claim to the land on them trees, or plants which the crops are 22 Resettlement Policy Framework Final report 14 November 2007 Type of Losses Level of Impact Entitled Person(s) Compensation Policy Implementation Issues Income or Access to Income (Commercial, Business, and Industrial Activities) Loss of source of Permanent loss of Owner or workers in · Provide transitional cash compensation · A list of available income or access income source or formal registered until new permanent employment is commercial, industrial, to source of access to it businesses secured based on net income (for a and business activities in income maximum period of 6 months). each affected commune · Provide development assistance to · A list of PAP and entitled PAPs (i.e. training in specific areas) in persons. order to help them to maintain and/or · The Environmental and improve their income generation Social Officer shall assist potential and access to gainful in the provision of employment. development assistance to severely affected PAPs Loss of source of Permanent loss of Owner or workers in · Provide transitional cash compensation and vulnerable groups income or access income source or informal unregistered until new employment is secured based (i.e. design training to source of access to it businesses on minimum wage per month in the programs, formalizing income respective district (for a maximum informal activities, access period of 6 months) to credit, including them · Priority shall be given to severely in the sub-project's affected PAPs in the provision of any contractors' pecifications relevant employment in the activities wherever possible). related to the sub-project. Loss of source of Temporary loss of Owner or workers in · Provide cash compensation for the income or access income source or formal registered duration of business/income generation to source of access to it businesses that is disrupted based on net income. income Loss of source of Temporary loss of Owner or workers in Provide cash compensation for the duration of income or access income source or informal unregistered business/income generation that is disrupted to source of access to it businesses based on the minimum wage per month in the income respective district. 23 Resettlement Policy Framework Final report 14 November 2007 Type of Losses Level of Impact Entitled Person(s) Compensation Policy Implementation Issues Community Resources Loss of Permanent All members of the · Affected land will be replaced in areas · A list identifying community assets (complete or partial community identified in consultation with affected community physical or access to them loss) of community communities and relevant organizations assets and resources (i.e., physical assets and authorities. public hospitals, markets, · Provide alternative or similar resources fishing areas, grazing to compensate for the loss of access to areas, fuel, or fodder). community physical resources · If income loss is expected due to the loss in any Loss of Temporary All members of the · Restoration of affected community community assets, community assets (complete or partial community buildings and structures to original or compensation for this loss or access to them loss) of community better condition shall be in the form of physical assets · Provide alternative or similar resources development assistance to to compensate for the temporary loss of restore the livelihoods of access to community physical resources the PAPs. Loss of socio- Permanent All members of the · Provide development assistance to · Identify different forms economic and/or (complete or partial community enable community members to take of social capital from social-cultural loss) of community advantage of income restoration PAPs' point of view (i.e. relationships / non-physical assets measures noted above. social credit, networks, networks or · Provide alternative or similar resources social cohesion, etc.) access to them to compensate for the loss of access to · Consultation with PAPs community social capital. to identify measures to rectify the permanent or Loss of socio- Temporary All members of the · Provide development assistance to partial losses in social economic and/or (complete or partial community enable community members to take capital. social-cultural loss) of community advantage of income restoration relationships / non-physical assets measures noted above. networks or · Provide alternative or similar resources access to them to compensate for the temporary loss of access to community social capital. 24 Resettlement Policy Framework Final report 14 November 2007 6. RESETTLEMENT AND COMPENSATION PLANNING 6.1. Institutional and Organizational Context At present, there is no institutional capacity for dealing with resettlement within the GCNGC project. However, since the project's policy shall be to avoid involuntary resettlement, and since no previous project has involved the displacement or resettlement of people, it is believed that ­ at this point ­ there is no need to create an independent unit responsible for the preparation and implementation of RAPs. However, if an involuntary land acquisition occurs, the contractor will be handling the resettlement activities, under the supervision of the EGAS Company and its representatives. 6.2. Proposed Preparation Process 6.2.1. Sub-Project Screening Once the detailed activities and work plan under the project have been identified, they should be screened to determine whether or not they will necessitate the involuntary resettlement of people within the determined project areas. 6.2.2. Preparation of Socio-Economic Survey Following the identification of the sub-projects that may necessitate involuntary resettlement, the next step would be prepare a socio-economic study, in which baseline data within the sub- project's target areas is collected. This information shall include the PAPs and related household members or dependents, total land holdings, and affected assets amongst other things. This information will be put in writing and shall be used in determining the appropriate compensation and assistance for each affected individual / household. The objective of conducting this socio-economic survey is to: Introduce the sub-project to the PAPs. · Collect census data to identify PAPs on the individual and household levels. · Collect census data to identify vulnerable and severely affected PAPs. · Collect census data on the overall socio-economic environment of the affected · Communities: Identify stakeholders. Identify impacts of the sub-project on the livelihoods of the PAP (i.e. property, · structures, income, etc.). · Identify any concerns or worries the PAPs may have · Identify the resettlement preferences of the PAPs. 25 Resettlement Policy Framework Final report 14 November 2007 6.2.3. Preparation of Resettlement Action Plans Any project activity that shall entail the acquisition of land or may result in the involuntary resettlement of people or loss or restriction of access to private or communal resources will require the preparation of a RAP. The RAP should assess the number of PAPs, propose alternative locations for the sub-projects if possible, identify the eligibility criteria, include provisions for compensation and assistance, and address the means by which the sub-project monitoring and evaluation will take place to ensure that the PAPs receive their compensation and that their grievances are heard and addressed. The mitigation measures and compensation policies proposed in the RAP shall be disclosed to the PAPs for feedback and comments. More specifically, according to Annex A of the WB's OP 4.12 on IR, the sub-project RAP should include: · A description of the sub-project · Identification of potential impacts · Objectives of RAP · Relevant findings of the socio-economic study · Legal framework · Institutional framework · Eligibility criteria and eligible PAPs · Valuation and compensation for losses · Resettlement measures · Site selection, site preparation, and relocation · Housing, infrastructure, and social services · Environmental protection and management · Community participation · Integration with host populations · Grievance procedures · Organizational responsibilities · Implementation schedule · Costs and budget · Monitoring and evaluation 6.3. Sub-Project Appraisal and Approval The RAP, including the proposed mitigation measures within the plan, will need to be reviewed and approved prior to making a decision on whether or not the sub-project shall be implemented. EGAS / Towngas shall take into consideration the communities concerns and worries raised in the process of putting together the socio-economic survey and RAP. The RAP may need to be reviewed by other local or central authorities in some cases. Once the RAP has been approved by EGAS / Towngas and the local authorities, the resettlement plan should be sent to the WB for final review and approval. 26 Resettlement Policy Framework Final report 14 November 2007 6.4. Sub-Project Implementation A detailed survey of the project site will be prepared to determine the scope of land acquisition and the impacts that the acquisition, demolition, and consequent displacement will have on the affected individuals, household, and communities. PAPs that have been determined to be eligible for compensation should be compensated prior to sub-project implementation, in accordance with the sub-project's RAP. This includes providing the PAPs with cash compensation, preparing the resettlement sites with the adequate structures and facilities, and / or providing different development and transitional assistance measures to assist the displaced persons. 6.4.1. Sign Compensation Contract and Pay Compensation to the Affected People As previously noted, affected individuals, households, and communities, who have been identified earlier under the socio-economic survey, will be consulted on their compensation preferences. The PAPs will be formally informed through written or verbal notification (in case some of the PAPs are illiterate) delivered in the presence of at least one public official. The environmental and social focal point in the regional office will arrange meetings with the affected individuals / households to document the lands acquired by the sub-project throughout the implementation period and discuss the compensation process. The PAP will be required to sign a contract detailing the acquired land plots and / or partially or completely affected structures and the corresponding types of compensation (i.e. cash or in-kind) that have been agreed upon. The signature of the compensation contracts as well as the actual payments and in-kin transfers shall be made in the presence of at least one public official from the village authorities. The contracts may also include contracts on possible transitional or developmental assistance and income restoration measures that will be given to the PAPs including, provision of skills training, access to credit, and sub-project related job opportunities. 6.4.2. Grievance Redress Mechanisms A grievance mechanism should be devised in order for the PAPs to be able to voice their concerns, complaints, or dissatisfaction with any part of the compensation process and seek redress. Simply, complaints can be made concerning the non-fulfillment of contracts, compensation entitlement, types and levels of compensation, compensation policy, acquisition / destruction of land or assets, resettlement, or development or transitional assistance. The grievances should be addressed to the relevant regional office and local authorities (in case legal claims or land acquisition issues need to be settled) either verbally or in writing. Grievance redress will be approached both proactively and reactively: Proactive approach a) Widespread disclosure of project background b) Clarification of criteria for eligibility for assistance under the RPF framework 27 Resettlement Policy Framework Final report 14 November 2007 c) Establishing a committee of honorable and respected persons (community leaders, people assembly members, religious persons etc), to review any grievances that may result from the project. Reactive approach, a) Settle disputes amicably b) If disputes arise these should to the extent possible, be dealt with at the local level approach and the above committee will focus on ensuring that PAPs, particularly those belonging to vulnerable groups get fair treatment. c) If disputes cannot be solved at the local level, the PMU in collaboration with Egas and Towngas should review specific complaints. Highly skilled Persons in communication and dispute resolution should review PAPs grievances. It is important that these mediation committees be set up prior to the implementation of any Resettlement Action Plans. Disputes can arise even before the preparation of the sub-projects, as people are curious about any new projects and rumors might be aroused. Hence, the mediation mechanisms should be available to cater for claims, disputes and grievances at this early stage. The above multi-level treatment of grievances mechanism should reduce the number of court cases. However, if no solution can be found, the legal system is the last resort. Grievances shall be collected and reviewed monthly and a decision shall be made on appropriate compensation. If the PAPs continue to refuse the compensation suggested by the regional office, the two parties may resort to legal action at the local government courts. However, it should be noted that the Administrative Courts have set the following principles: · The Competent Administrative Authority has freedom in selecting the appropriate property for expropriation. Accordingly, it was ruled that as long as the administration is not abusing its powers, its decision to select a particular plot to build a hospital is not subject to review. Similarly, the administration selection of a particular site to build a RPF is not subject to review. · The determination of the exact area (in square metres) to be expropriated is subject to the discretion of the administration and not subject to judicial review. · Expropriating the ownership of land to extend sewage pipelines below does not prevent the administration from appropriating the surface of the same land for public use. · Courts have asserted their judicial review authority whenever the administration's exercises of its discretionary powers are for political or personal objectives aimed at spite. · The State Council noted that the administration might not expropriate property for merely achieving monetary gains. Accordingly, it noted that the expropriation act by 28 Resettlement Policy Framework Final report 14 November 2007 the local council of an area adjacent to the location where a new station will be relocated aiming merely at making a profit was void. World Bank OP. 4.12 emphasizes that the PAPs should be heard. Therefore, they should be fairly and fully represented in an appropriate way. It is also recommended to minimize the cases that are taken to the court in order to avoid long and tiring litigation. 6.5 Vulnerable Groups The Egyptian regulation does not specifically state any privileges for those vulnerable groups. However, the World Bank OP 4.12 emphasizes the need to give special attention to the right of vulnerable groups to make sure that they are not excluded from any adopted measures within the overall resettlement actions. 6.5.1 Identification of Vulnerable Groups The main group of people that will be affected by this project are the LPG cylinders' distributors6. They are divided into three categories. - The first group is the people who started this business using their own money. Most of them are uneducated and unemployed. Accordingly, this is their sole source of income. Their number is not known, since they do not trust the authority because the Supply Authority (Tamween) is used to pursuing them. Hence, there is no accurate or even estimated number for them. These people have clearly indicated that if this project is to go through, they should be eligible for some sort of compensation. - The second group is those who took a loan from the Social Fund for Development. Delivering and replacing the LPG cylinders is, in most cases their only job. "We will be beggars" they would say. They are a total of 328 persons in Cairo and Giza. 276 of them have already paid back the loan but, 52 of them are still paying until present. As a result of the project, they might not be able to pay back the loan. This may result in them being sent to prison. - The third group is those who have obtained a license to distribute LPG cylinders through their private stores. They are about 2,500 in Egypt. No available number for them in Cairo and Giza specifically. Persons included in the first category cannot be entitled to compensation, since there is no detailed information about their activities and assets and accordingly the impact this project will have on them. In addition, they feel suspicious about any potential process to collect data about them. As an adaptation measure to the project's activites, they can continue to distribute the LPG cylinders elsewhere, such as squatters' areas. They also have the ability to sell the cylinders and start new businesses. They are accustomed to finding alternative business opportunities at times when they have faced difficulty in distributing the cylinders and this implies that the project activities will not be disrupting their sole means of financial income. For those in the second category, who took loans from the Social Fund for Development, they will not need compensation either, because the distribution of cylinders is very lucrative business 6They are a group of people who take the subsidized gas cylinders from the main store for LE 2.5, and then distribute them to the houses for a cost ranging from LE 7 to LE 15. 29 Resettlement Policy Framework Final report 14 November 2007 and they will be able to continue to engage in it in other areas such as slums and squatters' areas that will not be served by the GCNGC project. The third category is those who have a shop in the areas that will be connected to natural gas. In addition, the only work they used to do is LPG distributing. Actually, they have the right to distribute in other areas too. They can continue distributing or they can sell the cylinders and start a new business. This is what a number of them have done previously. The second major group of affected people is the shopkeepers and vendors, since their own livelihoods and sources of income may also be affected by the digging and accumulation of solid waste. The shopkeepers noted that they are accustomed to such disturbances. Thus, this group of affected people has not identified the need for compensation since they will only be slightly affected. The third group that will be affected are the door attendants. Although they do currently benefit from delivering the LPG cylinders to flats and earning around LE 2 (in addition to its actual price) per cylinder, they do not perceive natural gas as a serious threat to their livelihoods since they provide other different services to the tenants for which they receive tips. The fourth group is people who live in poverty who may be affected due to not being able to be connected to natural gas. However, the implementation of a long term installments plan will allow them to be connected.(see chapter 3 on income distribution and poverty level in WTP survey) 30 Resettlement Policy Framework Final report 14 November 2007 Table : 6.5.2 Assistance to Vulnerable People This section aims at identifying all potential mitigation measures and types of assistance that might be provided to vulnerable people Affected Groups Mitigation measures Responsibility Responsibility Means of Estimated Cost of mitigation / of mitigation of direct supervision supervision supervision Those who work in Provide technical support and Potagasco Potagasco lists of The routes until now are not the distribution of gas assistance to those who work in the rehabilitated addressed and the number of those cylinders in the distribution of gas cylinders in the persons and the who need rehabilitation is not governmental stores governmental stores through lists of new jobs addressed too. However, there will rehabilitation and training or moving they acquired be no cost because they are working them to another area in Potagasco and they receive their salaries from the company People who received People who received a loan from the Social Fund EGAS A list of them will Since most of them will continue in loan from the Social Social Fund for Development. 328 for be provided by the distributing, the rest of them should Fund for persons should be investigated, in Development Social Fund for be paid for the cylinders and should Development order to identify how they will react Development be rehabilitated. concerning the GCNGC project. a. They can distribute in areas that are not served by the GCNGC project b. They can sell the cylinders and start another business (they used to do so) The owners of The owners of private cylinders' EGAS EGAS A list of them will Because the exact routes have not private cylinders' stores in some districts (New Cairo, be provided by been addressed yet, the cost cannot store Shrouq/ Badr City/ El Hadied we El Potagasco be estimated. Especially in the case Solb buildings/ El Hoda city/ Qeba ­ of not changing their Omar Ebn El Khatab- Sheraton activity/business. buildings) should be compensated if they stop distributing the cylinders. They should be paid for the cylinders to give them the opportunity to start a new business. If they want to continue distributing LPG cylinders in the areas that are not served by the 31 Resettlement Policy Framework Final report 14 November 2007 Affected Groups Mitigation measures Responsibility Responsibility Means of Estimated Cost of mitigation / of mitigation of direct supervision supervision supervision project, they should not be compensated Poor people A clear and realistic installment plan Town Gas Town Gas The plan of No cost should be proposed and discussed installments with the people. The plan is settled but it needs to be discussed with the people during the willingness to pay survey7 Since most of the exact routes have not been finalized, estimating the cost of compensation for land acquisitions and damages will not be possible at this time. However, it is very important to establish who will be responsible for compensation. Egas will be mainly responsible for compensation due to any land acquisition. However, the contractor will be responsible for any damage that occurs to assets as a result of project works including construction activities. A commission from Egas will do the follow up for compensation of both land acquisition and damage to assets. The same commission will be responsible for the compensation if any of the above mentioned groups are affected. A social component will be included during the implementation of the project. This component will identifying the ultra poor affected by the project and provide guidance to the Egas commission about the best compensation plan for this affected group. 7 That plan was discussed through the (WTP) survey and a new installment plan has been designed with TownGas 32 Resettlement Policy Framework Final report 14 November 2007 6.6. Resettlement Monitoring and Evaluation Arrangement In line with WB requirements, internal and external resettlement monitoring and evaluation will be carried out in order to supervise resettlement implementation and ensure that all PAPs are compensated adequately. 6.6.1. Internal Monitoring Internal monitoring of the RAP implementation shall be made every three months, which will be documented. The internal report will mainly cover resettlement policies and compensation standards, resettlement progress, delivery of resettlement compensation, provision of development and transitional assistance to PAPs (especially vulnerable groups), implementation schedule, fund disbursements, land or structure allocation, and grievances and redress. 6.6.2. External Monitoring and Evaluation An independent agency will be required to do external resettlement monitoring and evaluation. The rationale behind hiring an external institution is to ensure that the overall objective of the resettlement plan is achieved in an equitable and transparent manner. In addition to reviewing the issues covered by the internal monitoring progress report, the external agency shall also evaluate and assess: · the competence and effectiveness of EGAS ­ Towngas staff, · adequacy of compensation, development and transitional assistance techniques provided to the PAPs, · ability to reach the most vulnerable PAPs, · consultation and public disclosure of the RAP, · Effectiveness of the grievance redresses mechanism, and the overall effectiveness of the entire ESMP. The table below provides a list of some verifiable indicators for monitoring and evaluating the implementation of RAPs. Table 6.6.2: Verifiable Indicators for Monitoring and Evaluation Implementation of Raps. Monitoring Evaluation Percentage of individuals selecting cash or Proposed use of payments a combination of cash and in-kind compensation Payment of compensation to PAPs in Conformance to compensation policies various categories described in the RAP Number of grievances Timeliness and quality of decisions made on grievances Delivery of technical assistance, Facilitation of access to technical and 33 Resettlement Policy Framework Final report 14 November 2007 relocation, payment of transitional development assistance and transitional subsistence and moving allowances allowances Delivery of income restoration and Ability of individuals and households to development assistance re-store sources of income Public information dissemination and Timeliness, quality, and effectiveness of consultation procedures consultation and information disclosure RPF EGAS / World Bank Actual completion of resettlement Completion dates of the RAP activities activities compared with the RAP time schedule 7. Public Consultation and Disclosure During the preparation phase and upon the identification of the activities that will necessitate IR, public meetings should be held in the areas where resettlement and displacement may take place to introduce to the affected communities, and other primary stakeholders, general information on the sub-project and resettlement policies and procedures. Information will be given to the PAPs and other stakeholders on: · Project components · Project impacts · PAPs' legal rights and entitlements · Compensation policies · Resettlement activities · Grievance and redress Mechanism · Implementation schedule · Public consultation and disclosure of information. · Organizational responsibilities. It is crucial that the PAPs and other primary stakeholders are involved in the sub-project from the very early stages, and that relevant and adequate information about the subproject and its activities is provided to them in a timely manner, since this would: · Help to identify the sub-project impacts and the affected individuals, households, and communities (especially the most vulnerable groups) · Allow for the collection of more accurate data for the socio-economic survey · Make the delivery of entitlement and services more transparent · Reduce the potential for conflicts and minimize the risk of sub-project delays · Support the formulation and design of resettlement programs and rehabilitation measures that meets the needs and priorities of the affected people Following the preliminary introductory meeting, the PAPs will be again consulted during the process of conducting the socio-economic survey where they will be interviewed and asked to present their ideas, concerns, and preferences on issue regarding land acquisition and replacement, 34 Resettlement Policy Framework Final report 14 November 2007 resettlement sites, compensation, and income restoration measures. If the sub-project is approved, the PAPs should be involved in the actual formulation of different options for the RAP. After the finalization of the RAP it shall be publicly disclosed to all PAPs and other relevant stakeholders in a meeting. The stakeholders' points of views will be taken into consideration upon the actual implementation of the RAP. The PAPs will gave a chance to express their concerns with the implementation of the RAP through the grievances and redress mechanism mentioned above. It will be amongst the main objectives of the monitoring and evaluation phase to ascertain that the PAPs complaints have been addressed and that they have been informed about the organizational procedures for resettlement throughout the entire process. 8. Budget and Sources of Funding Raps As soon as the activities triggering IR have been identified and approved by EGAS, Towngas, and the WB, realistic cost estimates shall be calculated based on the data collected from the socio- economic survey on the estimated number of PAPs that are likely to be affected by the sub- projects and the quantity and types of affected assets. The budget shall consider all of the anticipated impacts under the sub-project and calculate the cost (compensation, administrative costs and monitoring.... etc) according to actual replacement costs (at market value). The Egyptian Natural Gas Holding Company is fully responsible for any compensation for land acquisition. At the time of writing this report, as the routes have not yet been determined, it is very difficult to estimate the requirements and sources for a budget associated with the implementation of the OP 4.12. In addition, the contractor will be responsible for a large part of compensation due to damages to assets, as compensation for any damages has been included in the contracts of all contractors working on this project (as they have been in all previous Natural Gas projects. However the World Bank OP 4.12, states clearly that the full cost should be estimated to have a clear idea about the amount of money required for compensation, administrative costs and monitoring. 35 Resettlement Policy Framework Final report 14 November 2007 REFERENCES Working Papers and Publications ERM, 2002, "Resettlement Policy Framework: Prepared for the Ethiopian Social Rehabilitation and Development Fund", World Bank and Ethiopian Social Rehabilitation and Development Fund. Fuzhou Water Environment Construction and Development Company, 2004, "Fuzhou: Urban Environment Improvement Project, Lianban WWT Project: Resettlement Policy Framework", Fuzhou Water Environment Construction and Development Company, China. Mikhail, Gabriel, 2003, "Egypt's Wilderness: and the Quest for Conservation", Image House, Cairo, Egypt. Ministry of Education, Youth, and Sports: Republic of Ghana, 2003, "Education Sector Project: Resettlement Policy Framework", Ghana. United Republic of Tanzania: Ministry of Agriculture and Food Security, 2003, "Participatory Agricultural Development and Empowerment Project (PADEP): Resettlement Policy Framework", World Bank and Government of Tanzania. 2004, "Vietnam Northern Transmission Project: Final Resettlement Policy Framework", Vietnam. Internet Websites http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTSAF EPOL/0,,menuPK:584441~pagePK:64168427~piPK:64168435~theSitePK:584435,00.ht ml http://www- wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/08/05/000012009_20040 805151617/Rendered/PDF/E955.pdf 36 Resettlement Policy Framework Final report 14 November 2007