Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EXECUTIVE SUMMARY RP1244 v1 Introduction The purpose of the RPF is to clarify the policies, principles and procedures that will govern the mitigation of adverse social impacts induced by the Electricity Network Reinforcement and Expansion project operations. It is found useful to have a policy document establishing principles and procedures that will govern the mitigation of adverse social impacts induced by Electricity Network Reinforcement and Expansion project operations, to share with various stakeholders in the Power sector. The rationale for preparing this RPF is that: a) The Project components are not expected to have significant social impacts. However, since one cannot be sure whether environmental impacts will or will not occur in all the project components, it is proposed that precautionary measures be taken to ensure that planned activities do not affect livelihoods of the surrounding population. b) EEPCo found it useful to have a policy document establishing principles and procedures that will govern the mitigation of adverse social impacts induced by the Project operation to share with various stakeholders in the power sector, and c) Ensure that investments are carried out in an environmental and socially sustainable manner. The current Ethiopian situation reveals that only 41% of the population has access to electricity. The population’s limited access to electricity constitutes a major barrier to economic development and to the provision of social services in rural areas. To overcome this situation the government of Ethiopia is contemplating to supply reliable power supply to urban and rural towns. In light of this, the government of Ethiopia contemplates upgrading the power transmission system, enhancing the power transmission capacity and rural electrification of towns and villages through the Electricity Network Reinforcement and Expansion project operations. i ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– The Implementing Agency Ethiopian Electric Power Corporation (EEPCo) is the implementing agency under the Ministry of Water and Energy. Project Components The project components under the Electricity Network Reinforcement and Expansion project operations are: 1. Upgrading Power Transmission Line project, 2. New Expansion Power Transmission Projects, and 3. Rural Electrification Access Project Background In Ethiopia, there are about 5,163 towns and villages that are electrified, of which 99 % of the generated energy comes from (ICS) and the rest 1 % is from Self-contained system (SCS). Access and reliable supply of electricity could contribute and make a real difference in improving the lives of poor people and enhance socio-economic development. Lack of access to electricity hamper development and affects the progress of a country. Therefore, improving access to electricity is thus essential to bring development to a nation and improve the lives of the population by using it as a poverty reduction instrument. Through the Universal Electric Access Program (UEAP) the access to electricity has reached 41% in 2009/10 from 15% in 2005/2006. The programme will underpin Ethiopia’s Sustainable Development and Poverty Reduction Programme and Agricultural Led Industrialization (ADLI) strategy. In other words, the program will play a crucial role in helping to achieve the Millennium Development Goals. The implementation of the project components under the Electricity Network Reinforcement and Expansion project ii ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (ENREP) might create adverse social impacts on the lives of the population living in the project areas. Consequently, to minimize the adverse social impacts, such as loss of property and assets, income loss, involuntary resettlement and relocation, EEPCo has designed this resettlement/ rehabilitation policy framework (RPF). The overall purpose of the Resettlement Policy Framework (RPF) is to clarify the principles for the mitigation of adverse social impacts, such as involuntary resettlement and relocation induced by project implementation. The Project components are not expected to have significant negative impacts because of the fact that: 1. The Upgrading Power Transmission Line project component focuses on upgrading the high voltage power transmission system on existing transmission line and substations in different parts of the country. Since the upgrading works intended to be worked in existing power transmission facilities negative social impacts is not expected. 2 The New Expansion Power Transmission Project comprises construction of transmission lines that aims to transfer power generated from hydropower Plants to load centers in different regions of the country. Electric power transmission lines are linear facilities in nature that may have some effect on socio-economic environment including cultural resources. As a linear facility, the impacts of transmission line are mostly localized to the Right-of-Way (ROW). The impact can be minimized through careful route selection. 3 Rural Electrification Access Project is a project under the Universal Electrification Access program (UEAP) which is designed to enable towns and villages to have access to electric supply through low and medium voltage distribution lines. iii ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– This type of distribution lines normally follows the road network except for bends and curves where it is more economical to make shortcut if that is technically feasible. The project area covers all nine Ethiopian’s Regional States, namely Tigray, Afar, Amhara, Oromiya, Somali, Benshangul Gumuz, Southern Nations, Nationalities and Peoples (S.N.N.P), Gambela, and Harari Regional States. The components of this particular project extracted from the extensive and detailed analysis made in view of access expansion and reinforcement. Since the project components will be carried out in different parts of the country, one cannot be sure whether project components affects the surrounding population, therefore, EEPCo can only prepare a generic Resettlement Policy Framework (RPF) at this time. The operational objective of the resettlement /rehabilitation policy framework is to provide guidelines to stakeholders and partners participating in mitigating adverse social impacts of the project and to ensure that PAPs will not be impoverished by the adverse social impacts of the Project. EEPCo’s Power System Planning (PSP) comprises of Sociologists and Environmentalists to monitor and properly address adverse environmental and social impacts in its power sector development works and make power generation, transmission and distribution services environmentally and socially sound and sustainable. On the basis of the government's policies and proclamations and with due consideration of the experiences of different stakeholders, including the international aid agencies, EEPCo has developed an environmental guideline for the electric power sector. The guideline is used as EEPCo’s operational manual, which helps to properly address adverse environmental and social issues by avoiding or minimizing them. EEPCo’s Resettlement /Rehabilitation Policy Framework /RPF/ clarifies the policies and guidelines for resettlement and compensation, the legal framework for expropriation of land, as per the FDRE constitution and other related proclamations and World Bank policies on involuntary resettlement, including valuation methods. RPF also clarifies how to mitigate adverse social impacts, such as HIV/AIDs, loss of income, etc. The RPF will ensure that Project Affected Persons (PAPs) are: a) Compensated for loss of assets at replacement cost; b) Assisted in case of resettlement/relocation; iv ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– c) Have their income earning capacity restored, and d) Have their living conditions improved in relation to the situation, prior to resettlement or relocation. Baseline Environment Ethiopia is sub-divided into nine Regional States and two Metropolitan City Administrations under the Federal Government. However, the Regions do not have the same environment. The country has topographic and altitudinal diversity, different climate, vegetation, wildlife, geology, human settlement and occupation in different parts. Analysis of Alternatives There are several alternatives to the Project under consideration including the “do- nothing� base-case-scenario. Under the “do nothing� option, increasing unreliability of the transmission system will lead to consumers opting for additional or alternative energy sources. For businesses, this would lead to the installation of diesel generators at a direct cost to the economy and increasing the reliance on fossil fuels. At the household level, many of the smaller households still rely on fuel wood for cooking and heating. Any further degradation in services will escalate this demand, putting ever greater pressure on the woodlots and natural forest supplying in the major urban centers. Strategic Environmental Impact of the Project The Project is formulated to provide the communities of the country with reliable electric supply at low cost. However, all the locations of these towns are not known at this stage; thus the predicted impacts are more of generic and sectoral type. Positive Impacts The Project is a development project designed for the benefit of the population in the project area and is likely to have the following overall positive impacts: v ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– • Improve access to social services (education, health, water supply, etc), • Stimulate economic development, • Provide job opportunities thereby create income generation means for the respective communities in the project areas, and • Relieve pressure on biomass resource of the country and thereby reduce the loss of the biodiversity by providing alternative source of energy. Negative Impacts As a result of the planned construction activities, potential negative social impacts are likely to occur and the impacts may include crop damage, relocation of houses and cutting of trees. During the construction works, dust emission may be produced. Similarly, noise pollution arising from construction works may disturb the neighboring communities and local fauna temporarily. The major negative impacts anticipated in this regard include expropriation of land for substations expansion, access road and steel tower and pole foundation civil works. That is, crops of the farmers and urban dwellers may be affected temporarily and houses relocated. Although it is proposed that the transmission and distribution lines would follow as much as possible, the existing road network, the lines may traverse, in some cases looking for shorter distances, culturally sensitive sites like graveyards, archaeological sites, etc. As a result of the existence of PCB chemicals in transformers and capacitors, an environmental impact of these chemicals is also anticipated during the project life. Proposed Mitigation Measures vi ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– To mitigate any potential negative environmental impacts, EEPCo should: • Influence the adaptation of a route with minimum effect on the bio- physical as well as the socioeconomic and cultural environment, • Ensure the safe disposal of creosote-treated poles at its storage facilities, • Employ and deploy manual labor to maintain the access roads and right-of- ways, as appropriate, • Regularly monitor the rehabilitation and upgrading of substations to avoid any oil or waste water leakages, and • Include Environmental and Social Clauses for Contractors in the contract documents and monitor their implementation. In addition: • The compensation for crop damage and properties should be implemented as per Proc. No. 455/2005 and the provisions in the RPF, • Project affected people should be consulted and be involved in decision- making at different stages of the Project, and • PCB-free transformers and capacitors should be ordered and the import process be followed strictly prior to project implementation. Environmental Cost Estimate The total budget cost for compensation payment and environmental and social monitoring is about USD 1,011,327.82, Ethiopian Birr 17,678,718.23. The cost estimates are based on the past experience of EEPCO’S transmission line and rural electrification projects. This amount may change, once the RAP census and valuation of assets is finalized. The cost break down for each project components is presented below. vii ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011 Electricity Network Reinforcement and Expansion Project (ENREP) Resettlement Policy Framework - RPF ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Compensation Items Calculation Base Cost in USD Cost in Bir Monitoring cost Lump sum 25,000.00 437,017 Estimated Compensation Cost for project component 1 (Upgrading Power Transmission Line Project) Compensation cost for access road 500 km X USD 115.00 57,500.00 1,005,140 Sub total 57,500.00 1,005,140 Estimated Compensation Cost for project component 2 (New Expansion Power Transmission Project) Compensation for crop loss 340 km HVTL X USD 115.00 39,100.00 683,495. Compensation cost for access road 300 km X USD 115.00 34,500.00 603,084. Compensation cost for houses Tukul 968 m2 X 55 USD 53,240.00 930,672. “ “ “ CIS 855 m2 X 75 USD 64,125.00 1,120,949. “ “ eucalyptus trees 600 trees X 200 Birr 6,864.72 120,000. “ “ fruit bearing trees 600 trees X 520 Birr X 6 years 107,089.54 1,872,000. Sub Total 304,919.26 5,330,202 Estimated Compensation Cost for project component 3 (Rural Electrification Access Project) Compensation for crop loss, access 1600 electrified towns X 322.22 515,552.00 9,012,209.85 road, for houses, eucalyptus trees, USD each fruit bearing trees Sub Total 515,552.00 9,012,209.85 Total 902,971.26 15,784,569.71 Administration cost 2% of the total compensation cost 18,059.43 315,691.4 Contingency cost 10 % of the total compensation 90,297.13 1,578,457.0 cost Grand total 1,011,327.82 17,678,718.23 • 1 USD = Birr 17.4807 (November 8, 2011, Exchange Rate, Commercial Bank of Ethiopia /CBE/). viii ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– EEPCo, Power System Planning December 2011