REPUBLIC OF LEBANON COUNCIL FOR DEVELOPMENT AND RECONSTRUCTION LEBANON MUNICIPAL INVESTMENT PROGRAM (MIP) RESETTLEMENT POLICY FRAMEWORK (RPF) AUGUST 2019 1 Table of Contents Glossary .......................................................................................................................................... 3 Executive Summary ........................................................................................................................ 6 1. Introduction ................................................................................................................................ 9 2. Objectives and Key Principles .................................................................................................. 13 3. Legal Framework for Resettlement ....................................................................................... 15 4. Estimated Resettlement Impacts ............................................................................................ 23 5. Eligibility Criteria for Affected Persons ................................................................................ 24 6 Method of Valuation of Affected Assets and Compensation ................................................ 26 7 Institutional and Organizational Arrangements for Resettlement Planning and Implementation ............................................................................................................................. 36 8 Public Consultation and Disclosure ........................................................................................ 38 9 Grievance Redress Mechanism ............................................................................................ 41 10 Resettlement Cost, Budgeting and Funding .......................................................................... 45 11 Monitoring and Evaluation .................................................................................................... 45 Appendix: Minutes of Consultation .............................................................................................. 47 2 Glossary Terminology Explanation Abbreviated Establish a baseline through the census of PAPs that will Resettlement Plan comprise socio-economic data, the inventory of assets lost, and the compensation and resettlement benefits awarded to the PAPs. Census Household survey that covers all Project Affected Persons irrespective of entitlement or ownership. It provides a complete inventory of all project 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. Compensation Payment in cash or in kind to replace losses of land, housing income, and other assets caused by the project. Cut-off Date The date of the census prior to which, the occupation or use of the project area, qualifies residents or users of the project area as affected persons. Environmental and A systematic procedure for enabling the possible Social Impact environmental and social impacts of development projects to Assessment (ESIA) be considered before a decision is made as to whether the project should be given approval to proceed. Full replacement cost 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. For land in urban areas, it is 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. For houses and other structures, it is the market cost of the materials to build a replacement 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. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is 3 supplemented by additional measures so as to meet the replacement cost standard. Grievance Redressal Dispute resolving mechanism that is available at the project Mechanism level for persons affected under the project to submit project related grievances and to seek redressal for these. Gender 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 Involuntary their livelihood, sources of income and asset bases. Resettlement (IR) Monitoring The process of repeated observations and measurements of environmental and social quality parameters to assess and enable changes over a period of time. Project Affected Person Refers to all the people who, on account of the activities (PAPs) and Displaced listed above, would have their (1) standard of living adversely persons affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work or place of residence or habitat adversely affected; and “displaced person� means any of the displaced persons. Includes any people, households, firms or private institutions who, on account of changes that result from the project will have their (i) standard of living adversely affected, (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently ore temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, with or without displacement. Public Involvement The dialogue encompassing consultation and communication between a project proponent and the public. It includes dissemination, solicitation and presentation of information Rehabilitation/Resettle A term often used to describe the process of re-establishing ment 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 A time-bound action plan with a budget, setting out Plan (RAP) resettlement strategy, objectives, options, entitlements, 4 actions, approvals, responsibilities, monitoring and evaluation Social Impact An effect (both positive and negative) on a social issue resulting from infrastructure development projects. 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 persons with disabilities, the poor, isolated groups and single parents. Caza Geographical subdivision of the territory equivalent to the district level in Lebanon Qaemmaqam Local Authority representative acting as the Head of the Caza or District 5 Executive Summary The Syrian refugee crisis has resulted in unprecedented social and economic challenges to Lebanon. The conflict in Syria has brought 1.5 million Syrian refugees, placing Lebanon as the country with the highest number of refugees-per-capita in the world. This dramatic surge in population is putting a strain on the country’s resources, public services, and infrastructure while affecting local communities who are already experiencing high levels of poverty. The proposed Municipal Investment Program will work on two tracks to support participating municipalities in reducing their infrastructure and service delivery gap. First, in the short-term, and in coordination with other donor partners, it will provide immediate financing support to MIP-targeted host communities in secondary cities. This urgent and immediate intervention could complement and possibly trigger private investment in some cases. Second, MIP will support the Government in establishing an enabling environment for municipal PPPs that will help leverage private sector investment and participation in the delivery of municipal infrastructure and services. Successful mobilization of private sector financing will be a condition for advancement in SOP II. This effort will be focused on reducing perceived private sector risk by exploring and developing the use of municipal credit enhancement instruments and strategies, including the development of the policy and regulatory framework required for municipal PPPs as well as customized tools and institutional capacity to see PPP transactions through to closure at the municipal level with central government support. Within a total financing package of $150 million (SOP I and SOP II), MIP SOP I would require $100 million. This report presents the Resettlement Policy Framework (RPF) relating to the municipal investments component of the proposed World Bank funded project. Given that the activities financed under the latter component could require minor land acquisition and resettlement needs, some impacts might arise on squatters or encroachers on the rights of way or temporary impacts to land users in adjacent properties. In limited cases, minimal involuntary taking of land could also be required. Since the location of investments cannot be determined prior to project appraisal, the RPF is prepared based on the requirements and key principles of World Bank Policy on Involuntary Resettlement OP 4.12 and relevant Lebanese laws and regulations as a guideline for resettlement preparation and implementation, if there is any. A gap analysis of the legal framework on resettlement adopted by the Government of Lebanon and the World Bank was conducted in this report in order to bridge the two frameworks together. Practical measures were proposed in the report in order to fill the gaps in the relevant Lebanese laws to become in line with the World Bank safeguard policies. In cases such as the extent of stakeholder consultation/participation in the resettlement process, payment of compensation, grievance redress mechanisms, squatters and encroachers which are different between the two entities, the requirements of the World Bank Policy on Involuntary Resettlement OP 4.12 will take precedence over the Lebanese regulations. The purpose of the RPF is to set down the principles for resettlement impact mitigation, as well as to clarify the organizational arrangements that may be needed during 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. This framework shall cover all the project’s activities, and shall apply to all displaced persons 6 regardless of the total number affected, the severity of impact, and whether or not the affected persons have legal title to the land. The 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 proposed project. These impacts may constitute anything from the loss of physical assets 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. Therefore, the RPF aims to establish the mechanisms by which the appropriate tools, screening checklists and Resettlement Action Plans (RAPs), will be implemented to mitigate potential social and economic impacts once project locations have been identified. Specific attention will be paid to vulnerable groups identified by a socio-economic survey including those who live below the poverty lines, the landless, and other very poor groups. Additionally, the elderly, women and children, indigenous peoples, ethnic minorities, and project affected persons who may not be protected through national land compensation legislation (including refugees, displaced persons, or other non-Lebanese citizens) shall be taken into account as well. However, all PAPs who suffer a complete or partial loss of assets or access to assets shall be eligible for some kind of assistance, as per the criteria set forth in this report for asset valuation and compensation. Once the plans are submitted and approved by the CDR, and later on by the Bank, , they will be ready for implementation. In later stages of the project when the locations are identified, the Project Implementation Unit (PIU) within CDR will be responsible to carry out social screening to determine whether the project will result in any resettlement impact. In case the project will entail involuntary resettlement, the PIU will conduct a socio- economic study and census survey, in which baseline data within the project’s target areas is collected, and accordingly prepare a RAP or an abbreviated RAP based on the number of PAPs and severity of the expected impacts. Once the plans are submitted and approved by the CDR, and later on by the WB and disclosed locally and on the Bank’s external website, they will be ready for implementation. PAPs will have the chance to submit grievances and seek redress at the time that the resettlement plan is approved and individual compensation contracts are signed, according to a grievance redress mechanism devised for this project. It is important to note that all land and other assets acquisitions and RAP preparations shall be developed after consultation with the project-affected population (PAPs), tenants, residents, business owners affected, the concerned municipalities, NGOs and other representatives of civil society within the affected areas. As part of the requirements in preparing this RPF report, CDR conducted one consultation meeting with the concerned municipalities on Thursday August 8, 2019 at Markazia Monroe Hotel – Beirut Down Town. Overall, 26 attendees were consulted. During the meetings CDR presented the project details, potential impacts and mitigation measures, and opened the floor for one (1) hour of open discussions with the attendees. During the questions and answers sessions, various issues of environmental, safety as well as social concerns were raised by the attendees. On the other hand, and in line with WB requirements and procedures, the project will be subject to internal and external monitoring of the implementation of the resettlement activities to ensure transparency and effectiveness. Internal monitoring will be carried out by the CDR every three 7 months; results and findings will be included in quarterly project progress reports. On the other side, external monitoring will be carried out by an independent consultant in order to verify and audit the quality of the RAP implementation, identify any gaps that need to be addressed and recommend corrective actions. The ToRs of the independnat consultant will be prepared by CDR and approved by the Bank. The monitoring and evaluation process will be conducted according to pre-set key performance indicators that could be easily verified. 8 1. Introduction 1.1 Project background The Syrian refugee crisis has resulted in unprecedented social and economic challenges to Lebanon. Over the past decades, Lebanon has been affected by recurrent domestic and regional conflicts that resulted in high economic and social costs. In spite of the country’s resilience in weathering frequent internal and external shocks, the ongoing conflict in Syria has caused a tremendous increase in the number of refugees in Lebanon. While the country hosts 450,000 Palestinian refugees, the conflict in Syria has brought an additional 1.5 million Syrian refugees, placing Lebanon as the country with the highest number of refugees- per-capita in the world. This dramatic surge in population is putting a strain on the country’s resources, public services, and infrastructure while affecting local communities who are already experiencing high levels of poverty. This situation, combined with the current political deadlock in Lebanon, poses the risk of destabilizing further the country’s fragile political, social and economic situation. 1.2 Project description MIP will work on two tracks to support participating municipalities in reducing their infrastructure and service delivery gap. First, in the short-term, and in coordination with other donor partners, it will provide immediate financing support to MIP-targeted host communities in secondary cities. This urgent and immediate intervention could complement and possibly trigger private investment in some cases. Second, MIP will support the Government in establishing an enabling environment for municipal PPPs that will help leverage private sector investment and participation in the delivery of municipal infrastructure and services. Successful mobilization of private sector financing will be a condition for advancement in SOP II. This effort will be focused on reducing perceived private sector risk by exploring and developing the use of municipal credit enhancement instruments and strategies, including the development of the policy and regulatory framework required for municipal PPPs as well as customized tools and institutional capacity to see PPP transactions through to closure at the municipal level with central government support. Within a total financing package of $150 million (SOP I and SOP II), MIP SOP I would require $100 million. 1.3 Project Components The Project consists of three components: (i) Municipal Investments and Financial Management Strengthening; (ii) Enabling Environment for Private Sector Participation in Municipal Investments; and (iii) Project Management Costs. Component 1. Municipal Investments and Financial Management Strengthening (US$89.10 million). This component would be implemented by CDR as a first-tier response to the municipal infrastructure and service delivery deficit, which was exacerbated by the Syrian crisis. It will enable the financing of priority infrastructure and equipment investments to bolster municipal service capacity for residents and businesses in up to 181 participating secondary city municipalities that are host communities to clusters of displaced 1 The eighteen participating secondary city municipalities were selected based on geographical distribution across the country, host a disproportionate number of displaced persons, and are centrally located in their Caza with economic links to surrounding smaller cities or towns to generate economic spillover benefits. They include: Anjar, Baakline, Batroun, Bcharre, Bint Jbeil, Chhim, Douma, Hasbaya, Hazmieh, Hermel, Jezzine, Jib Jennine, Kfardebiane, Marjeyoun, Minye, Qoubaiyat, Rashaya, and Zgharta, 9 Syrians. The participating cities have been selected in coordination with other development partners such as AFD, EIB, and —EU to complement interventions and expand programmatic impact. This component will also provide targeted and custom-designed training and technical assistance programs for strengthening municipal financial management. The component is structured into two sub-components. Sub-Component 1.1: Municipal Investments (US$87.10 million). Subprojects under the MIP would be identified and prioritized by municipalities based on their ability to respond to a critical community- prioritized infrastructure needs through one of three financing windows: (i) City Competitiveness (public investments, typically area-based development, that trigger investment by the private sector or otherwise enhances the local economy), (ii) City Mobility (public investments that improve mobility within the city, including road networks, intersections, off-street parking, public bus terminals and pedestrian walkways, and (iii) City Resilience and Greening (including renewable energy options, storm water drainage, public space expansions or improvements, and measures to reduce environmental degradation). Participating municipalities would contribute from their own resources in cash or kind no less than 10 percent of the subproject investment cost, allowing for the leveraging of World Bank financing and expanding development impact. Funds will be allocated for up to five subprojects ranging from US$400,000 to US$4.5 million in estimated cost, which will be reviewed and approved on a rolling basis within the first two years of MIP. The sub-project investments will be identified by participating municipalities in consultation with their communities in accordance with the program guidelines. Subproject investments eligible for financing will be screened by using a negative list, will exclude water, sanitation and solid waste investments (which are covered under other financing mechanisms) and will emphasize investments that have a minimal negative social and environmental impact infrastructure (i.e. no Environmental Category A subprojects). Investments are likely to include urban renewal projects in old city or historic areas with tourism potential; secondary or tertiary roads to improve access or reduce congestion; sidewalks and pedestrian walkways to improve urban mobility; car parks; bus terminals, upgrading public spaces, renewal or expansion of municipal markets, and related assets in central business districts (CBD); storm water drainage; street lighting using energy efficiency options; municipal serviced plots for small scale businesses, particularly in agribusiness and light manufacturing and improvements to green spaces and other public areas. The sub- projects will be screened against environmental and social criteria, with an aim to exclude any investment that may result in significant environmental impacts or negative social implications, particularly related to land (property and livelihoods). No subprojects requiring land acquisition will be permitted, due to the high cost of land and the limited resources that local governments can make available for land expropriation from counterpart funds. Physical municipal investments are estimated to be equal to US$77.80 million. As a complement to the physical investments financed under this sub-component, financing will be made available (US$1.0million) for carrying out a City Situation Analysis (CSA) with key elements from a Strategic Environmental and Social Assessment (SESA) to support effective planning for capital investments at each participating municipality. This is intended to strengthen knowledge about community needs and investment priorities considering the rapidly changing demographics, including the influx of displaced population. Financing will also be made available to cover the cost of preparing feasibility and design studies, environmental and social management instruments, tender-ready documents to accelerate capital investments, and contract supervision for the physical works (An amount of US$8.0million has been earmarked for this activity). Each package will be designed not only to develop specified outputs but would 10 also incorporate elements for training and strengthening the capacity of targeted municipalities, so that they will be able to fulfill their mandated functions in capital investment planning more effectively over time. For this technical assistance, priority will be given to contract bundling, to enhance implementation efficiency, maximizing the use of design and build contracts, which have proven their effectiveness in recent urban operations in the country. Finally, project monitoring of beneficiary impact will be carried-out at a cost of ($0.3million). Sub-Component 1.2: Municipal Revenue Enhancement and Asset Management (US$2.0 million). This sub-component would be implemented by CDR in close coordination with the Ministry of Interior and Municipalities (MOIM) and would finance technical assistance and training for participating secondary cities designed to strengthen municipal revenue collection and asset management. The activities will be targeted at areas of revenue deficiency and asset management identified in the Municipal Finance Institutional Assessment carried out at the project inception. Working against their baseline, each municipality will be benchmarked against good practice comparator. Improved outcomes in revenue collection will be monitored and will ultimately provide targeted municipalities will greater resources within their existing legal and administrative mandates, while improve asset management will help to extend the life of a municipality's capital assets and thus reduce the demand of scarce public resources. As a complement to these two areas of focus at the municipal level, MIP will provide resources to MOIM to carry out sector analysis on municipal revenue sector policies and will support it in developing new policies, a Reform Action Road Map for the Independent Municipal Fund (ImF), as well as developing Own Source Revenue (OSR) reform options for municipalities with support for transitions in targeted reform areas. This sub-component would also provide capacity building in the form of training, consulting services, and equipment to strengthen municipal financial management systems, creditworthiness, budgeting, asset management, and revenue enhancement to improve their ability to access market-based financing over time. This capacity building would be designed into packages customized for each of the 18 participating municipalities based on a municipal institutional and financial capacity assessment carried out at the project's inception and specific deficiencies would be targeted for improvement against this baseline over the life of the MIP. This component would also support MOIM in developing a road map for improving the stability and reliability of the ImF. Component 2. Enabling Environment for Private Sector Participation in Municipal Investments (US$7.70 million). As a second-tier response to improving municipal infrastructure and services and to help sustain investments over time, this component would provide financing for technical assistance, training and consulting services to develop an enabling framework for municipal PPPs that would attract private sector equity and financing for municipal services. It would be implemented by the High Council for Privatization and Public-Private Partnerships (HCP) and is designed to build capacity, simplify PPP project preparation, and save on transaction cost. It would target Lebanon's primary cities identified under the AFD/EIB Urban Projects Finance Initiative (UPFI), including Zahle, Aaley, Baalbeck, Halba, Saida, Tripoli/El Mina, Tyr, Jbeil, Nabatieh, and any other municipalities that the Government may identify, excluding Beirut, with technical assistance in the form of training, advisory services, toolkits and resources customized to address each city's municipal PPP enhancement needs. It would be designed and built through a partnership with the International Finance Corporation (IFC) and the World Bank's Infrastructure, Guarantees and PPPs Group (IPG), including resident PPP experts, a database of over 1,000 PPP transactions (the PPI database), toolkits and model contract clauses for municipal PPP transactions. This component is structured into three complementary sub-components as follows: 11 Sub-component 2.1 Municipal PPP Tools, Training and Transactions (The 3 Ts) (US$4.70 million). This Sub-component will focus on the need to identify and prepare a pipeline of feasible municipal PPP projects in selected municipalities of Lebanon. It will consist of three elements including Tools, Training and Transactions identification (3Ts): (a) Tools: Municipal PPPs are expected to be smaller in terms of investment size, compared to PPPs in other sectors, and the overall approach under this TA will be attentive to the need to lower transaction costs (through standardization and wholesaling, where possible), so project preparation is simplified and cost efficient. TA will enable HCP to develop tools, model documents and municipal PPP Guidelines, drawing on findings an insight from examples of PPPs in Lebanon and global good practices. (b) Training: Customized technical assistance programs will be designed by HCP with TA support for participating municipalities, as well as other relevant government agencies and stakeholders (such as construction companies, developers, operators, suppliers, financial institutions and banks). Workshop content would include PPP legal framework, covering all aspects of the project cycle; project identification, preparation and feasibility studies; model documents: EOI, RFQ, RFP, PPP Agreements, guarantees, risk allocation, as well as training on the Bank's Environmental and Social Safeguards Standards. A structured training program will also be implement designed around the WBG-supported PPP Certification Program. The Program has three levels of training and accreditation exams at the end of each. (c) Transactions identification: To facilitate learning by doing, HCP through MIP will handhold participating municipalities in identifying and preparing demonstration municipal PPP projects under the provisions of the PPP Law. This will include TA for project identification, pre-feasibility studies, feasibility studies, and environmental and social safeguard studies, among others. Sub-component 2.2 Design of Market-Enabling Instruments for Municipal PPPs (US$3.00 million). This sub-component will be implemented by HCP and would provide TA and advisory services to carry out a market assessment for municipal PPPs, considering both demand and supply factors. The study will include a market sounding and preliminary pipeline survey to establish a visible and deliverable transaction pipeline within the policy framework; a methodology for ensuring consistency across projects and sectors; and, confirm liquidity and commercial bank and investor appetite for emerging transaction potentials. The survey will be based upon information available in reports and upon extensive consultations with stakeholders. The study will advise on the type and design of product offering/s to facilitate bank and financial institutional lending to private companies and sponsors (such as: contingent line, take-out financing, partial credit guarantee, credit wrap, etc. as well as, other security arrangements that may be appropriate.) On the demand side, market studies will identify potential areas for private participation in municipal infrastructure service provision where current services are poor or non-existent due to legal impediments, lack of adequate financing, insufficient sector knowledge or expertise, or other factors. On the supply side, factors that currently constrain participation in municipal PPPs will be explored, including insufficient financing in the market, transaction uncertainties, legal or regulatory constraints, among other factors. Based on these findings, resources would be available to design and set up appropriate financial instruments to support municipal PPPs, including: (i) direct lending to finance the enabling infrastructure for various municipal PPPs; (ii) equity or debt instruments for Special-Purpose-Vehicles (SPVs) for 12 municipal PPPs; (iii) credit enhancement in support of local currency debt of a municipal PPP SPV; or (iv) partial risk guarantees in support of either viability gap repayments by municipalities to SPBs or debt repayment by SPVs to commercial banks. This Sub-component would also provide TA and advisory support to identify and propose potential regulatory reforms aimed at reducing commercial bank credit risk in municipal transactions. It would explore options including, (i) allowing municipalities to open accounts at local commercial banks in addition to the accounts currently held at the BDL; (ii) explore the potential for securitizing municipal fiscal transfers from the Independent Municipal Fund (ImF) through a fiscal intercept; and (iii) allowing local commercial banks to use part of municipal deposits at the Central Bank of Lebanon to collateralize loans, and thereby lower costs, to SPVs implementing municipal PPP projects, among other options. Component 3. Project Management Costs (US$3.20 million). The Council for Development and Reconstruction (CDR) would be the implementing agency for MIP and this component would provide CDR with the means to retain qualified and competent consultants necessary to oversee effective implementation and monitoring of the MIP. It will cover the costs of supervision and monitoring of civil works financed under the project, preparing a quarterly monitoring report, overseeing implementation of project activities, supplying equipment necessary to make field site visits to actively monitor project-supported activities, and related project implementation support for meeting the Bank's fiduciary and safeguards requirements. 1.4 Rational for preparation of a resettlement policy framework (RPF) All activities financed by the project will be valued between $400,000 and $4.5 million, with no more than 4 sub-projects per municipality. Land requirements are expected to be small scale in nature and subproject investments will be carried out primarily on municipally owned land (or other government owned land). However, the project implementation may result in impacts on squatters or encroachers on government owned lands. In limited cases, minimal involuntary taking of land could be required. Since the location of subprojects cannot be determined prior to project appraisal, this Resettlement Policy Framework (RPF) is prepared based on the requirements of World Bank Policy on Involuntary Resettlement OP 4.12 and relevant Lebanese laws and regulations as a guideline for resettlement preparation and implementation, if there is any. 2. Objectives and Key Principles 2.1 Objective of Framework The purpose of the RPF is to set down the principles for resettlement impact mitigation, as well as to clarify the organizational arrangements for preparation and implementation of resettlement action plan that may be needed during 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 applied 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, 13 politically, and socially), the RPF shall guide the resettlement planning that will 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. Every effort will be made to avoid or minimize the need for land acquisition and resettlement for any components. In the unlikely and exceptional event that any of the components financed under the project require additional land, houses and other assets, or that activities have temporary or permanent impacts on livelihoods, this RPF will be implemented and a RAP prepared accordingly. 2.2 Key Principles The principles outlined in the World Bank’s OP/BP 4.12 have been adopted in preparing this RPF. In this regard the following principles would be applied: (a) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. Where land acquisition is unavoidable, the project will be designed to minimize adverse impact on the PAPs, especially the vulnerable groups; (b) All PAPs will be compensated, relocated and rehabilitated, if required, so as to improve their standard of living, income earning capacity and production capacity, or at least to restore them to pre-Project levels; (c) All PAPs residing in, or cultivating land, or having rights over resources within the subprojects areas are entitled to compensation for their losses and/or income rehabilitation. Lack of legal right to the assets lost will not bar the PAP from entitlement to such compensation, rehabilitation and relocation measures; (d) The rehabilitation measures to be provided are (i) compensation at full replacement cost for houses and other structures; (ii) compensation for land acquisition; (iii) dislocation allowance and transition subsides; (iv) full compensation for crops, trees and other similar agricultural products at market value; and (v) other assets, and appropriate rehabilitation measures to compensate for loss of livelihood; (e) Land-for-land is the preferred option. Land-for-land may be substituted by cash provided that: (i) land is not available in the proximity of the subproject area; (ii) PAP willingly accept cash compensation for land and all assets on it; and receive full replacement value without any deductions for depreciation; and (iii) cash compensation is accompanied by appropriate rehabilitation measures which together with project benefits results in restoration of incomes to at least pre-subprojects levels; (f) Resettlement plans will be implemented following consultations with the PAPs, and will have the endorsement of the PAPs; (g) Any acquisition of, or restriction on access to resources owned or managed by PAP as common property will be mitigated by arrangements ensuring access of those PAP to equivalent resources on a continuing basis. (h) While calculating compensation value for assets, there will be no deduction of depreciation and salvage value. PAPs are allowed to salvage materials. 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 bringing the asset to pre- displacement value, including administrative fees and taxes. However, the valuation of crops will mainly rely upon the price lists developed by the Agriculture directorate and revisited annually. (i) PAPs will be consulted and offered choices among technically feasible resettlement options; 14 (j) Ensure that a grievance redress mechanism (GRM) is available. 3. Legal Framework for Resettlement Resettlement and land acquisition issues under the proposed Project and subsequent subprojects will be addressed through relevant laws and regulation of Government of Lebanon 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. CDR shall be committed to complying with the national laws and WB policies and to any future amendments to them. 3.1 Government of Lebanon Relevant Laws and Regulations Lebanon's legislation provides the legal framework for the implementation of the entire project and its related sub-projects. It provides for expropriation only by due legal process and after compensation has been paid for all tangible losses of property and economic prejudice at current market rates or better; and it provides for a mechanism of appeal and review. The relevant laws and regulations are as follows: Expropriation: Lebanese law protects the right of private property, including land. Law No. 58 enacted in 1991 authorizes the expropriation of private property in the public interest but only after fair compensation has been made. The compensation is determined through an assessment by an independent judicial committee and is always a monetary award, comprising two components: (i) identification of damage or loss to improvements (buildings, trees, fences etc.) and (ii) compensation for the value of the land. Under Lebanese Law, the expropriation is considered final unless the public interest claim is itself challenged by an individual directly affected (an association, municipality, NGO etc. does not have the right to appeal). A decree is published in the Government Official Gazette announcing and authorizing the expropriation with a timeline which should not exceed 8 years from the publication of the announcement. Annexed to the decree are the following: a) a sketch of the entire project area proposed; b) a detailed plan of the properties to be expropriated; c) a list showing the registration numbers of each property, its location, the names of all the owners and right holders in the Land Registry; and d) a detailed list of the immovable contents of the property as well as a detailed plan of buildings constructed prior to the date of the decree's publication. The complete document is made available for public access at the government offices. In addition, these documents are posted at the municipalities where the propertie s to be expropriated are located. Compensation : Compensation is determined by an Expropriation Committee set up by a decree in accordance with proposals from the relevant ministers for each Mouhafaza. The members of the commission consist of (i) a chairperson (a judge or a magistrate of at least the 10th degree) (ii) an engineer and (iii) a property valuator. If the affected person does not satisfy with the compensation, he or she can appeal to a higher level Committee-Appeal Committee, which consists of a chairperson (a magistrate of at least the 6th degree) (ii) an engineer and (iii) an expert in land law and valuation. Each committee is assigned alternates for each of its members, as well as a clerk and a messenger. The Expropriation Committee determines all compensation for any economic prejudice arising from expropriation, decides on requests by owners for total expropriation and full compensation, and determines the value of small portions of land which cannot be used for building and resolves disputes over the division of compensation between shareholders. Its awards are always based on prevailing local market rates. 15 The Expropriating Agencies for the proposed will be the Expropriation Department of CDR and the municipalities concerned, with the support of the PIU. Land Tenure: In Lebanon there is generally little contestation over ownership, legal rights or boundaries of land because plots are generally well surveyed and title is recorded at an administrative service based in the Ministry of Finance (with the exception of areas affected by uncontrolled movement and settlement due to the civil war). The survey unit also maintains cadastral maps that are regularly updated. Since land ownership is recorded in shares, along with all those whoever held title to it, the exact value of any transaction for an individual owner can be determined. In addition, land laws in Lebanon are gender neutral. However, the situation with regard to historic urban cores is much less clear, with informal land subdivisions not represented in the cadastre, and complex vertical layers that do not always correspond to horizontal boundaries. These features reinforce the need in this project to conduct careful and detailed empirical research in the affected areas, consultation, and to tailor the project actions to the social realities on the ground. Tenancy Laws: A new rent law enacted in 1991 relaxed rent control and gave the landlord the right to repossess the property at the end of the contract. Rent laws prior to 1992, however, per mitted tenants automatically to renew their contracts and capped rent increases. Moreover, tenants could sublease the property to third parties with only minor increases in the rent at the signing of each new contract. As a result, rent contracts signed after 1991 favor the landlord and those signed previously favor the tenant. Where expropriation causes loss of tenancy, expropriation commissions divide their awards between landlords and tenants according to the economic value of the tenancy, enabling tenan ts to secure alternative housing by rental or down payment against purchase. Antiquities Laws : According to the Antiquities Law of 1933 historic monuments, even those on the General Inventory List, can be either publicly or privately owned. Although archae ological finds are considered state property, the parcels on which archaeological discoveries are made can remain the property of private individuals or institutions. Under this law, private property owners of listed historical buildings are responsible for the repair and maintenance of the structure. The discovery of important archaeological remains could also lead to the expropriation of private property or to limitations on its use. If a building is placed on the list of classified monuments, the owner r eceives no compensation for the freezing of development rights. However, if the listing is erroneous the owner may eventually be compensated. This disposition of the Antiquity Law would be contrary to the World Bank Policy on Involuntary Resettlement, however in this case although the discrepancy is mentioned there is no case of this nature financed by the project. Maritime Public Domain : Lebanese Law provides that the entire intertidal shore is public domain. This law has not been fully enforced. In some places, such as at Tyre, a small number of semi- permanent informal business structures have been erected which is inconsistent with the World Heritage character of the site. Consequently, the owners will be assisted to relocate their businesses to a more suitable site. Lebanese law provides for legal process : i) expropriation is effected after compensation has been determined and paid ii) prior warning and public disclosure is made iii) full judicial compensation is independently awarded and iv) payment is transferred to a special account in a Bank and citizens can retrieve their payments and v) citizens have the right to appeal. There are however, several sequencing features of Lebanese procedures which are commonly encountered in many countries that differ slightly from what the Bank documents anticipate. Expropriation is initiated by a ministerial decree and signed by the President with no prior public debate. However, informal public consultations may precede the decree and this has been the case in medinas and detailed specificity about expropriations would not be appropriate to Lebanese conditions. The compensation levels made through an 16 independent judicial process are situation specific and cannot be known at the time of the RAP but may in some cases be estimated on the basis of known precedent. The Lebanese law of expropriation only compensates those with legal rights. However, mechanisms exist that protect various forms of customary rights made on a case by case basis to the expropriation committee. In practice, since squatters cannot be evicted without an order from the governor, resettlement is most often done through amicable negotiation, by agreeing on a level of compensation or inducement that will encourage voluntary departure. Widespread displacement of people during the civil war led to a proliferation of squatting between 1975 and 1991. As part of the reconciliation process a Displaced Peoples Fund (DPF) was established to encourage squatters to return to their villages. However, since many did not wish to return to their respective villages, the DPF provides them with financial support to relocate wherever they choose. This project will follow Lebanese practice of humane treatment and amicable resolution of cases to avoid hardship where poor residents lack formal legal rights. However, the Displaced People’s Fund is not involved in the Project. Appeals Procedures: The decisions of the Expropriation Committee may be appealed to the Appeals Committee by either party (the CDR or the individual property owner, but not by public bodies, NGOs or municipalities) and the decisions of the Appeals Committee are binding on both parties. The appellant must be represented by a lawyer. The appeals fee is about USD 125 (including stamp and insurance fees to initiate the appeal) plus 3.5 % of the increased compensation amount demanded in the appeals case. Appeals Committee may make upward adjustments in the level of compensation awarded and must make a decision within three months of the lodging of the appeal. Thi s appeals process might be too onerous (average monthly family income is about $200) for project affected people, especially in poor areas. Hence it is important to set up a robust grievance and redress mechanism upstream from the appeals mechanism. Payment of compensation : Where there is an appeal, at least 65% (sixty-five) of the compensation is paid in advance, and if no structures are found to be existing within expropriation limits, additional 25% are paid and the expropriation party reserves the right (only if it wishes so) to hold the remaining 10% till the decision of takeover is issued, but the process of expropriation itself cannot be halted unless the validity of the public interest decree itself is challenged. To fill in this gap, CDR will ensure that no land will be taken over under this project without full prior payment of compensation. 3.2 World Bank Safeguard Policies The WB’s policy on Involuntary Resettlement OP 4.12 sets forth all the resettlement requirements and principles which will be well considered and fully applied in the proposed project. According to WB’s OP4.12, to address the involuntary taking of land, a resettlement plan or a resettlement policy framework is to be prepared by the borrower and should include the following principles: (a) the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) Informed about their options and rights pertaining to resettlement (ii) Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) Provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project. (b) If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) Provided assistance (such as moving allowances) during relocation; and 17 (ii) Provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also includes measures to ensure that displaced persons are: (i) Offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of livings; and (ii) Provided with development assistance in addition to compensation measures, such as land preparation, credit facilities, training, or job opportunities. 3.3 Policy Gaps Consultation and participation. According to OP 4.12, PAPs should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. It further requires that the resettlement process include measures to ensure that the PAPs are consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives. However, there are clear requirements in relevant Lebanese laws and regulations on consultation with and participation of affected person in the planning and implementation of the resettlement program. Loss of income and livelihood. OP 4.12 makes provisions for loss of income sources or means of livelihood, whether or not the affected persons must move to another location. It requires that PAPs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. In this regard the Lebanese laws do not have clear provision for restoring loss of income sources or means of livelihood. Squatters and encroachers. Squatters and encroachers in occupation or use of land before project initiation are likely to have invested in structures or land improvements that are eligible for compensation. OP 4.12 states that those without legal title to affected land may be compensated for their structures and may qualify for other resettlement and rehabilitation assistance. While the Bank’s involuntary resettlement policy is explicit on the compensation entitlement to people without title or use of rights, the Lebanese laws are less clear on the issues of compensation payments for illegal occupation or use of registered properties. 3.2 Gap Filling Measures In some cases, Lebanese laws may differ from World Bank rules and regulations. This may be the case with regard to the extent of stakeholder consultation/participation in the resettlement process, payment of compensation, grievance redress mechanisms, squatters and encroachers. In all these cases the requirements of the World Bank Policy on Involuntary Resettlement OP 4.12, as outlined in the following sections, will take precedence over the Lebanese regulations. Table 3-1: Comparison of Lebanese Laws and Regulation with the World Bank Policies 18 Lebanese legislative Practical measures to fill the Topic World Bank policies requirements gaps The cut-off date There is no cut-off date The WB identifies a cut-off . The cut-off date will be the day under the Lebanese laws. date in order to prevent when the census starts for the Under law number 58 people influx to the project preparation of the site-specific that authorizes the area. This measure is RAPs. expropriation of private stipulated in order to protect property in the public the project owner and to interest the Government prevent wasting of resources. Official Gazette The Lebanese laws never set announcing and a cut-off date. The cut-off authorizing the date is the day the census expropriation with a starts. timeline which should not exceed 8 years from the publication of the announcement. This announcement could be the date after which the land is considered public but does not consider the cut-off date Monitoring and Monitoring or evaluation Under OP 4.12 the projects The RAP will include a M&E Evaluation (M&E) measures are not including resettlement or land section that will explains the stipulated in Lebanese acquisition need to follow up mechanisms and indicators for regulation. Lack of the the implementation of the the monitoring of the necessary legal provision measures through monitoring resettlement activities during the project implementation as needed to put in place for and evaluation, both detailed in this RPF. monitoring and internally and through an evaluation measures can independent party. negatively impact the accountability and transparency of the programs. Resettlement There is presently no When there is impact on land A screening will need to be planning and requirement to prepare a and livelihoods as a result of conducted to determine whether a procedural formal Resettlement a WB funded project, the RAP should be prepared. Once requirements Action Plan (RAP) under project requires to prepare a this is determined the Council for the Lebanese law, nor to formal Resettlement Action Development and Reconstruction in compliance with the WB undertake any of the Plan (RAP). In order to procedures should prepare site- component activities of a prepare the RAP, it is specific Resettlement Action resettlement action plan necessary to undertake the plans when and if needed. In such as, a ‘census’, component activities of a addition, the consultation socio-economic survey, resettlement action plan such activities will be implemented consultation with project as, a ‘census’, socio- throughout the project life-cycle affected people, economic survey, and as part of the preparation of monitoring or reporting. consultation with project the RAPs. To determine the need Moreover, there are no affected people, monitoring for possible RAPs CDR will specific references in the or reporting. conduct a preliminary survey of the selected sites. legislation to ‘involuntary 19 Lebanese legislative Practical measures to fill the Topic World Bank policies requirements gaps resettlement’. Also, there is no explicit consultation requirement in the Lebanese law. Compensation Under Lebanon only • Eligibility Criteria for The categories of people who eligibility those with legal title are compensation under OP must be compensated under entitled for 4.12: Lebanese legislation are narrower compensation. In (a) those who have than those defined under OP 4.12. Lebanese there is formal legal rights to Under this project all the categories (A, B, C) will be generally little land (including considered for compensation in contestation over customary and accordance to OP4.,12. ownership, legal rights or traditional rights To address the issue related to the boundaries of land recognized under the historical urban cores, the project because plots are laws of the country); will conduct careful and detailed generally well surveyed, (b) those who do not empirical research, consultations, and title is recorded at an have formal legal rights tailoring the project actions to the administrative service to land, at the time the social realities on the ground if it based in the Ministry of census begins, but have were to carry out activities in Finance (with the a claim to such land or urban centres. exception of areas assets; provided that Resettlement assistance should be affected by uncontrolled such claims are provided in order to improve the movement and settlement recognized under the PAPs livelihoods or at least to due to the civil war). The laws of the country or restore to pre-displacement survey unit also become recognized levels or to levels prevailing maintains cadastral maps through a process prior to the beginning of that are regularly identified in the project implementation, updated. Since land resettlement plan; whichever is higher. ownership is recorded in (c) those who have no Accordingly, individuals under shares, along with all recognizable legal right category a and b, should be compensated at full replacement those whoever held title or claim to the land they cost and WB requires payment to it, the exact value of are occupying. prior to acquisition. any transaction for an • To determine eligibility: While those who are using land individual owner can be • Carry out resettlement but have no recognizable legal determined. In addition, census. Cut-off date for rights or claim (i.e. individuals land laws in Lebanon are eligibility is the day under category c) will be gender neutral. However, when the census begins. compensated for their the situation with regard • Under the OP 4.12 all investments on the land in order to historic urban cores is the land needed for a to improve their livelihoods or at much less clear, with project is subject to least to restore to pre- displacement levels or to levels informal land compensation prevailing prior to the beginning subdivisions not of project implementation, represented in the whichever is higher. cadastre, and complex vertical layers that do not always correspond to horizontal boundaries Provisions for Lebanese legislations do • Those who have no All project affected persons squatters and not make provision for recognizable legal right or should be compensated for their land users people with no legal title, claim to the land are loss of assets, regardless of their 20 Lebanese legislative Practical measures to fill the Topic World Bank policies requirements gaps although there have been provided resettlement legal status. Compensation some cases where assistance in lieu of includes financial or technical practice on the ground compensation for the land support so that PAPs are able to has differed from the they occupy, and other restore their livelihood to pre- legislation. This practice assistance, as necessary in a displacement levels or to levels prevailing prior to the beginning on the ground should way that they are not worse of project implementation, adhere to the World off from before. whichever is higher. Bank OP 4.12; but as it is • Also, the core of OP 4.12 is not in law, it is that people should not be conducted on a worse off as a result of WB discretionary case-by- funded project and their case basis and is not livelihoods should be systematically restored regardless of the monitored. legality of the ownership. Income Lebanese laws recognize Under the OP 4.12, loss of Lebanese law does not discuss restoration the income from land or income resulting directly compensation for loss of income, assets from the owners, from project implementation only land and assets. Hence, however it is not clear should be compensated for. OP4.12 principle regarding about the restoration of OP 4.12 makes provisions income restoration will be considered. Therefore, those income or livelihoods. for loss of income sources or whose income is going to be means of livelihood, whether affected will be compensated for or not the affected persons the loss of profit and income. must move to another location. It requires that PAPs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre- displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. In this regard the Lebanese law has not made clear provision for restoring loss of income sources or means of livelihood. Disclosure The Lebanese laws do The OP 4.12 requires the Providing information to, and not have any requirement provision of the relevant consulting with, affected persons for disclosure of draft resettlement instrument is essential to a process intended resettlement documents which conforms to this to enable affected persons to policy and makes it available adapt to changed living at a place accessible to conditions following land displaced persons and local acquisition or resettlement. OP NGOs, in a form, manner, 4.12 requires and language that is borrowers/implementing agency understandable to them. to consult with affected persons Once the Bank accepts this during the RAP preparation instrument as providing an process, and, through monitoring 21 Lebanese legislative Practical measures to fill the Topic World Bank policies requirements gaps adequate basis for project or other means, throughout the appraisal, the resettlement implementation Bank makes it available to period. The RAP, in draft and the public through its Bank’s final versions, is disclosed in a external website. After the manner accessible to affected Bank has approved the final persons. resettlement instrument, the Bank and the borrower disclose it again in the same manner Grievance The Lebanese laws The O.P. 4.12 requires the The absence of a project level Mechanisms provide for formal appeal creation of procedures that grievance mechanism in the if the PAPs not agree are free and easy to access by Lebanese law means there are with the compensation. the affected people and difficulties to access grievance However, there is no communities. This GM is set mechanisms addressing minor issues that otherwise should be provision for a up to address the grievances resolved within a short period of Grievances System under and disputes related to land time. To address this GM that will the project. acquisitions and livelihood. be accessible, easy to use will be established under the project. This allows PAPs to have access to direct channels to voice their grievances in an appropriate time prior to resettlement. In order to avoid delay in dispute resolution, it is essential for the implementing agency to establish a GRM that is acceptable, easy to use, and free. This GRM will serve as the first stop for people who have a grievance. All complains, and concerns will be listened, documented and responded to and a due procedure of handling and managing grievances will be set. To have accessible GRM the information of where and how to lodge complain will be posted on CDR website as well a billboard/projects at construction sites in both English and Arabic. PAPs should be informed that they can take the case to the court If need arises. Aggrieved people would however remain free to open a Court case without having registered their grievance with the GRM. Consultation There is no explicit • Under OP 4.12 the Affected groups should have consultation requirement affected communities access to full information about 22 Lebanese legislative Practical measures to fill the Topic World Bank policies requirements gaps in the Lebanese law. and individuals should the resettlement process and However, people in the be consulted and options for compensation. affected communities are contribute to the Participatory planning and usually informed about processes of land decision making should be the project. acquisition and applied in resettlement options and compensation. Consultation resettlement. is a continuous process that will • Consultation with the be done in the affected affected PAP should be communities throughout the documented. project implementation and be documented. 4. Estimated Resettlement Impacts 4.1 Estimation of PAP Population As the subproject locations have not yet been determined, it is difficult to estimate the number or likelihood of people to be negatively impacted by the project at this stage of the project. Therefore, the purpose of this RPF is to establish the mechanisms by which the appropriate tools, screening checklists and RAPs, will be implemented to mitigate potential social and economic impacts once subprojects have been identified. 4.2 Vulnerable Groups Specific attention should be paid to the needs of the following vulnerable groups, including: • Persons below the poverty line, the landless, and other very poor groups • Elderly, women and children, indigenous peoples, ethnic minorities, and so on • Project affected persons who may not be protected through national land compensation legislation. Vulnerable people will be identified at the socio-economic survey stage. Each RAP developed under the project will make precise provisions with respect to identifying and assisting vulnerable groups which include: • Identification of vulnerable people and identification of the cause and impacts of their vulnerability, either through direct interviews by the Project social worker or through the community; this step is critical because vulnerable people often do not participate in community • meetings, and their disability/vulnerability may remain unknown, • Identification of required assistance at the various stages of the process: negotiation, compensation, moving, • Implementation of the measures necessary to assist the vulnerable person, • Monitoring and evaluating continuation of assistance after resettlement and/or compensation took place. 23 5. Eligibility Criteria for Affected Persons 5.1 Defining Affected Persons 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 proposed project. 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. Table 5-1 highlights some of the key losses that may arise from land acquisition. Table 5-1: Possible Losses from Land Acquisition 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 Environmental ▪ Access to natural resources ▪ Negative environmental impacts resulting from land acquisition or from the project itself 5.2 Eligibility Criteria All PAPs 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 2 The 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 Lebanon to this regard. 3 The 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 Lebanon to this regard. 24 the claim cut-off date. A cut-off date will be established for any subprojects which involve resettlement impacts and included in the RAP. The Bank OP4.12 specifically proposes three general categories for eligibility as illustrated in Table 5-2. Table 5-2: Criteria for Eligibility (OP 4.12) Displacement Category Entitlement Individuals who have formal ▪ Compensation for loss in land and assets at full replacement cost. legal rights to land (including ▪ In case of physical relocation, provide assistance during relocation (i.e. customary and traditional rights moving allowances) and residential housing and / or agricultural sites recognized under the laws of with productive and location advantages equivalent to the lost sites. Lebanon) ▪ 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 replacement cost. formal legal rights to land, but ▪ In case of physical relocation, provide assistance during relocation (i.e. have a claim to such land or moving allowances) and residential housing and / or agricultural sites assets (provided that such claims with productive and locational advantages equivalent to the lost sites. are recognized under Lebanese ▪ Support after displacement, until livelihoods and standards of living are laws or become recognized restored to pre-displacement levels. through a process identified in ▪ Development assistance in addition to compensation measures (i.e. land preparation, credit facilities, training, job opportunities). the resettlement plan) Individuals who have no ▪ Resettlement assistance as appropriate (i.e. land, assets, cash, recognizable legal right or claim employment, etc.). to the land they are occupying (i.e. squatter settlements, disputed ownership). Individual or groups who may be • In addition to the compensation per their eligibility as described disadvantaged or “vulnerable� above, the vulnerable groups are entitled to differentiated measures especially those below the so that adverse impacts do not fall disproportionately on the them poverty line, the landless, the and/or they are not disadvantaged in sharing any development benefits and opportunities resulting from the project elderly, women and children, • Ensure that displacement or restriction of access does not occur indigenous peoples, ethnic before necessary measures for resettlement are in place minorities, or other displaced persons who may not be protected through national land compensation legislation. It is to be noted that as per WB OP. 4.12, persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. The cut-off date will be established in the respective resettlement instruments selected for the sub-projects (Table 3-1). 25 6 Method of Valuation of Affected Assets and Compensation 6.1 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. However, the valuation of crops will be mainly relied upon the price lists developed by the Agriculture directorate and revisited annually. "Replacement cost" is defined as follows: For agricultural land, it is 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. For land in urban areas, it is 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. For houses and other structures, it is the market cost of the materials to build a replacement 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. In determining replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Replacement cost will differ depending on the type of asset, as illustrated in Table 6-1. Table 6-1: 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 structure Structures 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 cannot 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, and if this is not 26 possible, should establish a fair compensation amount that considers the value of the loss from the time it occurs until the PAP can reasonably be expected to have replaced the lost income, asset, or access. 6.2 Compensation Compensation will be provided to all individuals whose assets or access to assets is affected or damaged, as a consequence of land acquisition or any other activities undertaken by the projects. The compensation for the loss of physical and nonphysical assets will vary depending on the type of loss, and eligibility of the PAPs. 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 project staff and the PAPs 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. 27 Table 6-2. Entitlement Matrix Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations Agricultural Land Loss of arable and Permanent Farmers/Individuals • Offer of replacement land with • A list of available arable and grazing land in grazing agricultural (complete or who have formal the same production value and each affected municipality land or access to it partial) loss of legal ownership capacity within the same • Consultations and formal agreement with PAPs arable and grazing rights to land geographical location. on type of compensation (cash or in-kind) land located in the • Provide cash compensation at • If available and requested by the PAPs and sub-project site replacement cost for the lost agreed to by the sub-project and concerned land at the market price4, authorities: provide equivalent land nearby, of inclusive of the cost of similar size, value, and quality preparing the land to levels • In case of relocation, provide assistance to similar to those of the affected farmers during and after the relocation process land as well as the cost of any • Provision of assistance to farmers to develop registration and transfer taxes. new crops and improve production for both • Provide cash compensation for crops and livestock loss of crops or trees at • Poor and vulnerable PAPs (including the replacement cost. landless) will not be displaced until Loss of arable and Permanent Farmers/Individuals • Provide development and replacement land is provided grazing agricultural (complete or who do not have transitional assistance in • For the transitional period, it is recommended land or access to it partial) loss of formal legal locating new replacement that: arable and grazing ownership rights to lease land. Transitional assistance should be provided at land located in the land but have • Provide cash compensation least six months are provided if not more for all sub-project site temporary or for loss of crops or trees at PAPs. Market value of the crops should be leasing rights replacement cost. considered 4 Calculated at entitlement cut-off date 28 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations Loss of arable and Permanent Farmers/Individuals • No compensation for land. Which is calculated based on besides the grazing agricultural (complete or who do not have • Provide landless PAPs with transitional cycle of re-growing the same type of land or access to it partial) loss of any recognizable resettlement assistance in crop, plus cost involved. arable and grazing legal right or claim securing temporary or lease land located in the to the land rights to replacement land sub-project site • Provide cash compensation for loss of crops or trees at replacement cost. Loss of arable and Temporary Farmers/Individuals • No compensation for land if • If the temporary loss continues for more than grazing agricultural (complete or who have formal returned to owner in less than one year, PAPs will be given a choice of either land or access to it partial) loss of all legal ownership one year. continuing with the temporary arrangements, or part of arable rights to land • Provide cash compensation or selling the affected land to the sub-project and grazing land equivalent to the replacement at full replacement cost at current market located in the sub- cost at market price of renting value project site the land during the temporary • Provision of development assistance to enable use. farmers/land owners to restore land to its • Provide cash compensation for previous condition or better quality by loss of crops or trees at providing measures to improve land quality in replacement cost and cases of land being adversely affected. compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease. Loss of arable and Temporary Farmers/Individuals • No compensation for land if grazing agricultural (complete or who do not have returned to owner in less than land or access to it partial) loss of all formal legal one year. or part of arable ownership rights to • Provide cash compensation and grazing land land but have equivalent to the replacement located in the sub- temporary or cost at market price of renting project site leasing rights the land during the temporary use. • Provide cash compensation for loss of crops or trees at replacement cost and 29 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease. Loss of arable and Temporary Farmers/Individuals • No compensation for land if • Provision of development and resettlement (complete or grazing agricultural who do not have returned to owner in less than assistance to landless PAPs with no legal partial) loss of all any recognizable land or access to it one year. rights. or part of arable legal right or claim • Provide cash compensation for and grazing land to the land loss of crops or trees at located in the sub- replacement cost. project site Urban Land (Residential and/or Commercial) Loss of urban Permanent Individuals who • Provide cash compensation • A list of available non-arable land residential or (complete or have formal legal at replacement cost of land in each affected municipality commercial non- partial) loss of ownership rights to of equal size and use, with • A list of PAP and entitled persons arable land or access urban residential land similar or improved public • Consultations and formal to it or commercial infrastructure facilities and agreement with PAPs on type of non-arable land services and located in the compensation (cash or in-kind) vicinity of the affected land, • If available and requested by the plus the cost of any PAPs and agreed to by the sub- registration and transfer project and concerned authorities: taxes. provide equivalent land nearby, of • In the case that there are similar size, value, and quality structures on the land, • Provision of development and provide cash compensation resettlement assistance, mainly in form at replacement cost for the of transition allowances for severely materials used to rebuild the affected PAPs (transition subsistence structures or to partially allowance for food, moving incentive repair an affected structure. 30 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations Loss of urban Permanent Individuals who do • In the case where there are allowance, assistance in locating new residential or (complete or not have formal structures on the land which residential or commercial leasing, and commercial non- partial) loss of legal ownership have been built by the users, income transition allowance if arable land or access urban residential rights to land but provide cash compensation at businesses are affected). to it or commercial have temporary or replacement cost for the • For the transitional period, it is recommended non-arable land leasing rights materials used to rebuild the that: structures or to partially repair an affected structure. Transitional assistance should be • Provide development and provided at least six months are transitional assistance in provided if not more for all PAPs. locating new replacement lease land Loss of urban Permanent Individuals who do • Provide no compensation residential or (complete or not have any for land. commercial non- partial) loss of recognizable legal • In case that there are arable land or access urban residential right or claim to the structures on the land which to it or commercial land have been built by the users, non-arable land provide cash compensation at replacement cost for the materials used to rebuild the structures or to partially repair an affected structure. • Provide landless PAPs with resettlement and transitional assistance to secure alternative commercial or residential land and to restore their livelihoods. 31 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations Loss of urban Temporary Individuals who • No compensation for land if • If the temporary loss continues for more than residential or (complete or have formal legal returned to owner in less than one year, PAPs will be given a choice of either commercial non- partial) loss of ownership rights to one year. continuing with the temporary arrangements, arable land urban residential land • Provide cash compensation or selling the affected land to the sub-project or access to it or commercial equivalent to the replacement at full replacement cost at current market non-arable land cost at market price of renting value the land during the temporary • Provision of assistance to enable the land users use owners to restore land to its pre-subproject • Provide cash compensation for condition by providing measures to improve loss of crops, trees, or land quality in cases where land is adversely structures at replacement cost affected Loss of urban Temporary Individuals who do • No compensation for land if residential or (complete or not have formal returned to owner in less than commercial non- partial) loss of legal ownership one year. arable land urban residential rights to land but • Provide cash compensation or access to it or commercial have temporary or equivalent to the replacement non-arable land leasing rights cost at market price of renting the land during the temporary use • Provide cash compensation for loss of crops, trees, or structures at replacement cost Loss of urban Temporary Individuals who do • No compensation for land if • Provision of resettlement assistance to landless residential or (complete or not have any returned to owner in less than PAPs with no legal rights commercial non- partial) loss of recognizable legal one year. arable land urban residential right or claim to the • Provide cash compensation for or access to it or commercial land loss of crops, trees, or structures non-arable land at replacement cost Structures or Buildings (Commercial, Business, Industrial, or Residential) Loss of structures or Permanent Individuals who • Provide cash compensation at • A list of available structures in each access to them (complete or have formal legal replacement cost which is affected municipality partial) loss of ownership rights to equal to the market cost of • A list of PAP and entitled persons structures the structures materials used to build a 32 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations replacement structure of • Consultations and formal agreement with similar area and quality, or to PAPs on type of compensation (cash or in- repair a partially affected kind, i.e. relocation) structure, in addition to the cost of transporting building materials to the construction site, plus the cost of any labor and contractors’ fees, and the cost of any registration and transfer taxes. Loss of Permanent Individuals who do • Provide assistance in moving • A 3-months’ notice - at least - to be given to structures or access (complete or not have formal and finding similar and the tenants. to them partial) loss of legal ownership affordable rental urban residential rights to land but accommodation (this may or commercial have temporary or include moving allowance and non-arable land leasing rights rental allowance for a (tenants) transitional period). Loss of Permanent Individuals who do • Provide cash compensation at • The Environmental and Social Officer may structures or access (complete or not have any replacement cost for the look into the possibilities of formalizing the to them partial) loss of recognizable legal structures if they were built by structures following their repair. urban residential right or claim to the the users. or commercial land (squatters and • Provide assistance in moving non-arable land persons in and finding similar and ownership dispute) affordable rental accommodation (this may include moving allowance and rental allowance for a transitional period). Standing Crops, Trees, and Plants Loss of standing Permanent Farmers or • Provide cash compensation for • A comparative list of the prices of agricultural crops, trees, or (complete or individuals who loss of crops, trees, or plants at products in local markets. plants or access to partial) loss of cultivate the land replacement cost. them standing and who have 33 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations crops, trees, or formal legal • A list of tree and plant species in the plants ownership rights to municipality area. the land on which • The sub-project activities should take into the crops are consideration the cropping patterns and planted seasons in order to avoid partial or complete Loss of standing Permanent Farmers or • Provide cash compensation for loss if possible. crops, trees, or (complete or individuals who do loss of crops, trees, or plants at plants partial) loss of not have formal replacement cost. or access to them standing legal ownership crops, trees, or rights to land on plants which the crops are planted but have temporary or leasing rights (tenants) Loss of standing Permanent Farmers or • Provide cash compensation for crops, trees, or (complete or individuals who do loss of crops, trees, or plants at plants partial) loss ofnot have any replacement cost. or access to them standing crops, recognizable legal trees, or plantsright or claim to the land on which the crops are planted Income or Access to Income (Commercial, Business, and Industrial Activities) Loss of source of Permanent loss of Owner or workers • Provide transitional cash • A list of available commercial, income or access to income source or in formal registered compensation until new industrial, and business activities in source of income access to it businesses permanent employment is each affected municipality secured based on net income (at • A list of PAP and entitled persons. least six months are provided if • The Environmental and Social Officer shall assist not more). in the provision of development assistance to • Provide development assistance severely affected PAPs and vulnerable groups as to PAPs (i.e. training in specific areas) in order to help them to 34 Entitled Compensation Policy & Implementation Type of Losses Level of Impact Person(s) Standards Recommendations maintain and/or improve their specific attention should be paid to the needs of the income generation potential following vulnerable groups, including: and access to gainful i) Persons below the poverty line, the landless, employment. ii) Elderly, women and children, indigenous Loss of source of Permanent loss of Owner or workers • Provide transitional cash peoples, ethnic minorities, income or access to income source or in informal not compensation until new iii) Project affected persons who may not be source of income access to it registered employment is secured based protected through national legislation. businesses on minimum wage per month iv) persons with disabilities in the respective district (at The RAPs will include these vulnerable groups and least six months are provided if take into consideration their individual not more) circumstances. Subsequently, the provision of • Priority shall be given to development assistance to severely affected PAPs severely affected PAPs in the and vulnerable groups will be through design provision of any relevant training programs, formalizing informal activities, employment in the activities and access to credit. related to the sub-project. • If the transitional cash compensation 6-month Loss of source of Temporary loss of Owner or workers Provide cash compensation for the period expires without the PAPs having restored income or access to income source or in formal registered duration of business/income their living standard, then the period could be source of income access to it businesses generation that is disrupted based extended to another 3 months. However, this on net income. This includes the extension is to be granted on a case-by-case basis. loss calculated based on the time Therefore, it is recommended that an needed to re-establish the business Environmental and Social Officer has to make a elsewhere. case study for each PAP prior to the decision. Loss of source of Temporary loss of Owner or workers • Provide cash compensation for income or access to income source or in informal the duration of business/income source of income access to it unregistered generation that is disrupted businesses based on the minimum wage per month in the respective district. 35 7 Institutional and Organizational Arrangements for Resettlement Planning and Implementation 7.1 Procedures for delivery of Entitlements 7.1.1 Project Screening Once the subprojects are identified by the Municipalities, the PIU within CDR will obtain all permits/approvals related to the project. Thereafter, they will cooperate with the Municipalities to carry out social screening to determine whether or not the subprojects will result in any resettlement impact and accordingly PIU of CDR will decide the need for the preparation of a resettlement action plan or an abbreviated Resettlement Action Plan. 7.1.2 Preparation of Socio-Economic and Inventory Survey Following the identification of the sub-projects that may involve involuntary resettlement, PIU of CDR in cooperation with Municipalities will carry out a socio-economic study and census survey, 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. 7.1.3 Preparation of Resettlement Action Plans Any subproject 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 or abbreviated RAP depending on the number of people affected or the significance of the resettlement impacts. PIU of CDR is responsible for preparation of the RAPs. 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, the RAP should include: • A description of the sub-project 36 • Identification of potential impacts • Objectives of RAP and its scope, in terms of sub-projects and activities covered • Relevant findings of the socio-economic study and all census data; • Legal framework including the gap analysis; • Institutional framework; • Eligibility criteria and eligible PAPs; • Valuation and compensation for losses; • Resettlement measures and the entitlement matrix; • Site selection, site preparation, and relocation; • Housing, infrastructure, and social services • Environmental protection and management • Stakeholder consultation and community participation • Integration with host populations • Grievance redress mechanism (procedures and implementation) • Organizational responsibilities and implementation schedule; • Monitoring and evaluation – internal and external (procedures, staff, implementation responsibilities and reporting); • Capacity building, costs and budget As guidelines for RAP preparation, all data (including socio-economic survey and census, consultations, Entitlement Matrix (EM), and Grievance Redress Mechanism (GRM) must be gender disaggregated and reported as such. If fewer than 200 PAPs are affected, or if all the PAPs suffer only minor impacts (i.e., lose less than 10 percent of their income producing assets), and the subproject does not involve any physical displacement, then an abbreviated plan (ARAP) should be prepared. An ARAP should include: • A census survey of displaced persons and valuation of assets • A description of compensation and other resettlement assistance to be provided and the basis of compensation rates • Consultations with displaced people about acceptable alternatives • Institutional responsibility for implementation and procedures for grievance redress • Arrangements for monitoring and implementation • A timetable and budget However, it is to be noted that in terms of application of OP/BP 4.12, the main principles and contents of an ARAP remain the same as for a RAP but the level of detail and items covered should be commensurate with the level of impacts. 7.2 RAP Review and Approval The RAP, including the proposed mitigation measures within the plan, will need to be reviewed and approved by CDR then will be sent to the WB for final review and approval. CDR should ensure that this resettlement instrument is made available at a place accessible to displaced persons and local NGOs, in a form, manner, and language that is understandable to them. Once the WB accepts this instrument as providing an adequate basis for project appraisal, the WB makes it available to the public through its Bank’s external website. After the WB has approved the final resettlement instrument, the WB and the borrower disclose it again in the same manner. In addition, for any changes made to the RAP after the approval, the same process of approval and disclosure (that applied to the original RAP) will need to be 37 followed. The RAP will not be implemented until after they have been disclosed on the CDR website and World Bank External Website. 7.3 RAP Implementation Once the RAP is approved by the Bank, it will be translated into Arabic and disclosed locally as well as in InfoShop at the Bank. The PIU of CDR and Municipalities concerned are responsible for implementation of the RAP. 7.3.1 Signing Compensation Contract PAPs will be consulted on their compensation preferences they will be formally informed through written or verbal notification. In case some of the PAPs are illiterate they are notified in the presence of at least one public official. In coordination with Municipalities, PIU of CDR will arrange meetings with the PAPs 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. 7.3.2 Compensation Payment All handing over of property such as land and buildings and compensation payments will be made in the presence of the affected party and village officials. The compensation to the PAPs for the affected assets should be completed before civil works start. CDR is the main entity in charge of this process. 8 Public Consultation and Disclosure Acquisition of land or other assets and the RAPs preparation require consultation with the project - affected population (PAPs). In addition to tenants, residents, and business owners affected, the concerned municipalities must also consult with associations, NGOs and other representatives of civil society within the affected areas. The purpose of the public consultations is to also generate partnerships and cooperative engagement among those affected. All consultations will be informed, inclusive of all groups, and gender, and a two-way dialogue to provide information and receive feedback. Responses will be provided by the project for all the queries raised and the participants will subsequently be informed on how their suggestions were incorporated in the design/mitigation measures. To make sure there will inclusion of all groups if need be separate consultation sessions should be arranged as needed for women and vulnerable groups. The RAP will cover information on the number of participants who attended (gender disaggregated data) with locations/time of the consultation, along with a summary of the different consultations held (issues raised and responses to the issues) in the main body of the RAP while the details will be in the annex. 38 8.1 Public Consultation Carried out During RPF Preparation Public consultations will be carried out following a two-phased approach as follows: (a)- Phase-I will consist of holding, by project appraisal date, a public consultation workshop at CDR involving the Mayors of all 18 secondary cities along with local NGOS. Furthermore, all the18 cities will publicly disclose the two documents (ESMF and RPF) and share these with relevant government agencies, nongovernmental organizations and development partners of Lebanon. the outcomes of the consultations will also be disclosed as part of the RPF on the World Bank’s external website. Satisfactory completion of Phase-I consultations will be a condition for Project Appraisal. (b)- Phase-II will involve holding, by project effectiveness date, townhall meetings in each of the 18 cities. Such meetings will involve discussing the project's environmental and social aspects and mitigation measures with local stakeholders, NGOs and community groups to take their views into account. The implementing agency (CDR) will initiate these consultations as early as possible and will provide all relevant material in a timely manner before consultation, in a form and language understandable and accessible to the groups being consulted. All outcomes of the consultations will be disclosed by the CDR and also on the World Bank’s external website. Satisfactory completion of Phase-II will be a Project Effectiveness Condition. During this RPF preparation, the Phase 1 consultation workshop with the mayors of all 18 secondary cities and NGOs was carried on August 8, 2019, the number of overall attendees is 26. Full documentation about the consultation process and findings are included in the annex of the public consultation. 8.2 Public Consultation in Resettlement Planning and Implementation Public consultation must be an on-going activity taking place throughout the entire project cycle. Thus, public consultation shall take place during the: • Project inception and planning, • Screening process, • Feasibility study, • Preparation of project designs, • Resettlement and compensation planning, • Drafting and reading/signing of the compensation contracts, • Payment of compensations, • Resettlement activities and, • Post compensation monitoring and as relevant community support activities. The public consultation and participation must take place through local meetings, radio and television, requests for written proposals/comments, completion of questionnaires/application forms, public consultations and explanations of the Bank financed project ideas and requirements. The public consultation must take into account low literacy levels prevalent in rural communities. 39 8.3 Outcomes of the Public Consultations Held at the RPF stage Public Consultation Meeting was held at Markazia Monroe Hotel – Beirut Down Town on Thursday 8 August 2019. Invitations were sent out by CDR to the concerned (18) Municipalities and Ministry of Interior and Municipalities through official letters. The invitation letter sent by CDR in Arabic can be found in the Appendix; and a list of the invitees is provided also in the Appendix. Overall, 26 attendees were consulted. Out of a total of 18 municipalities were invited to the consultation, 15 attended the event, as well as a representative of the Ministry of Interior and Municipalities. The main issues raised during the public consultation and the detailed minutes of meetings is listed in Appendix, photographic documentation of the consultation is provided, a list of the attendees of the consultation is also attached. Below is the summary of the main topics discussed and a more detailed minutes can be founded in the Appendix • Municipalities’ representatives were pleased to learn that the projects will be developed and implemented in accordance with comprehensive Environmental and Social Safeguards, Guidelines and Instruments, which will ensure sound project development and implementation. • Municipalities’ representatives further conveyed that they are glad that the process involves public consultation, as well as monitoring of implementation; • Municipalities’ representatives highlighted the importance of the roles and responsibilities of the various parties during the process. 8.4 Notification Procedures Public documents must be made available in English and Arabic at the national, local and household levels and at other relevant locations (including the official residences/offices of village governments and village elders) to ensure easy access to them by PAPs. The project will through the CDR notify the public of its intention to acquire land assigned for the project. Thus, a public notice must be announced to the beneficiaries concerning physical resettlement and temporary relocation. The notice must state: a) Government’s proposal to acquire the land, b) The public purpose for which the land is needed, c) That the proposal or plan may be inspected by CDR/PIU or the offices of the Mayor of Municipality in the respective Municipalities, during working hours, d) That any person affected may, by written notice, object to the transaction giving reasons for doing so, to the Project Team with copies to District Administration [Insert Project Specific Information] and the Local Village Chief’s Headquarters within 14 days of the first public announcement or appearance of the notice. Assurances must be made that affected persons have actually received this information and notification. 40 8.5 Documentation of Compensation Process For each individual or household affected, the municipality staff completes a compensation dossier containing necessary personal information on the affected party and those that s/he claims as household members, dependents, total landholdings, inventory of assets affected, and information for monitoring their future situation. This information is confirmed and witnessed by CDR. Dossiers must be kept current and must include documentation of all assets surrendered and/or impacted. Each individual will be provided a copy of the dossier at the time of negotiations. This is necessary because it is one way in which individuals and households can be monitored over time. All claims and assets must be documented in writing. 8.6 Disclosure CDR will ensure that affected persons and communities can obtain relevant information relating to the project in general and the land acquisition and resettlement arrangements in particular. The RAP or Abbreviated RAP (excluding individual names and the amounts of monetary awards) must be made publicly available in Arabic and English and will be posted in an accessible and prominent place accessible to project affected persons. The RAPs or Abbreviated RAPs must be approved by the Bank prior to disclosure and the implementation of the resettlement activities. When RAPs are prepared during project implementation, they will be disseminated to the project- affected persons in a manner accessible to them. Information disseminated to the project -affected persons will include: (i) compensation rates for all categories of affected assets; (ii) eligibility criteria for all other forms of assistance that may be provided; and (iii) grievance procedures. The resettlement and environment consultation and disclosure requirements will also be harmonized and stream lined as appropriate. 9 Grievance Redress Mechanism At the time that the resettlement plan is approved and individual compensation contracts are signed, affected individuals and households will have been informed of the process for expressing dissatisfaction and to seek redress. The grievance procedure will be simple, accessible by PAPs and should be administered at the local level to the extent possible. 9.1 Procedures for Handling Complaints The proposed GRM for this project will be disclosed as part of the ESMP and RAP and publicly available. The GRM will be accessible to all relevant stakeholders who can use this mechanism to send their suggestions, concerns and complaints related to the project, including environmental concerns. The complaints, suggestions and concerns can be sent by e-mail, mail, phone (through a hotline), text messaging, in person and other means. The phone number, e-mail address, and address for receiving complaints will be disclosed among the population and will be posted at project sites once the project becomes effective. All objections to land acquisition must be made in writing, in a language that the PAP understands and is familiar with, to the CDR or by direct or third party communication with CDR in the event of illiterate PAPs. Attempts must be made to settle grievances amicably. The procedure for handling grievances must be as follows: 41 • Minor complaints can be addressed to the relevant contractor and site engineer (see below different levels). However, all complaints, regardless of severity should be registered at the PMU. Therefore, all complaints should be registered by the PMU, which shall establish a register of resettlement/compensation related grievances and disputes mechanism. • The existence and conditions of access to this register (where, when, how) shall be widely disseminated within the community/town as part of the consultation undertaken for the sub- projects in general. Moreover, the information on how to access the GRM should be available through billboards, CDR website, etc. • A committee of knowledgeable persons, experienced in the subproject area(s), shall be constituted at a local level as a Committee to handle first instance dispute/grievances. This group of mediators attempting amicable mediation/litigation in first instance will consist of the community leaders/mayor, the PMU Director, and legal advisors for social/income/vulnerable groups and gender issues. This mediation committee will be set up at local level by the implementation agency on an “as-needed� basis (that is, it will be established when and if a dispute arises in a given community). • When a grievance/dispute is recorded according to the above-mentioned registration procedures, the mediation committee will be established, and mediation meetings will be organized with interested parties. • Minutes of meetings will be recorded. • The existence of this first instance mechanism will be widely disseminated to the affected people as part of the consultation undertaken for the sub-project in general. It is important that these mediation committees be set up as soon as RAP preparation starts. • Disputes documented through for example socio-economic surveys should be dealt with by appropriate mediation mechanisms which must be available to cater for claims, disputes and grievances at this early stage. • A template form for claims should be developed and these forms be collated on a quarterly basis into a database held at subproject level. • GRM levels - Level 1: If any person has any complaint, concern or suggestion regarding the project implementation, he or she can lodge an orally or written grievance through mail, e-mail, phone text message, or social media to the site manager/engineer of the concerned municipality of the sub-project. In case an oral complaint is made, it will be written on paper by the receiving unit. The above issue will be resolved within the maximum of one week. - Level 2: If the person is not satisfied with the action of the site manager’s Office, he or she can bring the complaint to the attention of the mediation committee. The issue shall be resolved within a maximum of two weeks. - Level 3: If the person is not satisfied with the decision of the mediation committee, he or she can bring the complaint to the attention of the Head of the concerned Department at CDR. Once the Head of the concerned Department receives the complaint, it needs to be resolved within the maximum of two weeks. If the grievance relates to valuation of assets, experts may need to be requested to revalue the assets, and this may necessitate a longer period of time. In this case, the aggrieved person must be notified that his/her complaint is being considered. A designated person at each level will be assigned to be responsible for receiving and recording receipt of each complaint, whether received orally or in writing. The contact information of the designated person will be made publicly available prior to commencement of project 42 implementation. At the end of each month when the project commences, the designated person reports to the PMU on the number and subject of new complaints received, and the status of complaints, if any, that remain under resolution. The report also informs the PMU of complaints that could not be resolved at the lower levels and are being elevated to the PMU Director’s attention. The PMU aggregates information received into a status report each quarter, indicating the number and subject of complaints. The quarterly status report also provides up-to-date information on the number and subject of complaints that have been resolved, and the manner in which they have been resolved. The quarterly status reports will be made available for external monitoring and to the World Bank for project supervision and project evaluation purposes. The GRM does not exclude the formal legal process of the national law. If a grievance remains unresolved following application of the project GRM process, the affected person can initiate legal proceedings in accordance with national law and may have recourse to the Appeals Court as warranted. Error! Reference source not found. illustrates the proposed GRM. 43 44 Figure 9-1 Proposed GRM Mechanism 9.2 Appealing Procedures The decision of the Appeals Committee is binding and final. Appeals Committee may keep the same level of compensation or make upward adjustments in the level of compensation awarded and must issue their decision within 15 days from submission of the complaint. Irrespective of who appeals (CDR or owner), the owner is required to vacate the property, with rights of sale but not of development, and with access to 75 percent of the compensation until the Appeals Committee reaches its final decision These funds should be set aside in a special escrow account. If no agreement is reached at this stage, then the complaint can be referred to the Courts of Law according to Lebanese Law. 10 Resettlement Cost, Budgeting and Funding At this stage, where the locations of the project have not yet been determined, and when the number of PAPs cannot be identified, it is not possible to provide an estimated budget for the total costs of resettlement that may be associated with the implementation of the project. Therefore, activities for resettlement plan will be funded like any other project. Funding will be processed and effected through the project’s financial processing arrangements. Funds for implementing inventory assessments and resettlement plans will be provided by the implementing agency. In general, the cost of compensation will be borne by the project. The resettlement plan for a Bank financed project should include an itemized, indicative budget and the implementing agency will finance this budget through the administrative and financial management rules and manuals like any other activity eligible for payment under the Bank financed project. This budget will be subject to the approval by the implementing agency. The implementing agency will have to finance the resettlement compensation because they will be impacting on the people’s livelihoods. Disbursements based on budgetary requirements, established by the resettlement plan in consultation with PAPs and local leaders, will be made through the relevant Municipal Administration. 11 Monitoring and Evaluation 11.1 Internal Monitoring In line with WB requirements, internal monitoring of the implementation of the resettlement activities will be carried out by CDR PMU assigned team and sent to the Bank as part of the quarterly report. Internal monitoring will be held every three months, results and findings will be included in quarterly project progress report. The 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. The final report on the implementation of each RAP will also contain a socio-economic end line survey, describing the post- displacement living conditions and livelihoods of PAPs. 11.2 External monitoring 45 External Monitoring might be required to ensure that the overall objective of the resettlement plan is achieved in an equitable and transparent manner and ensure the effectiveness of the monitoring and evaluation activities carried out by CDR. Based on the degree of the complexity of the Resettlement Action Plan, several agencies may also be involved in this process (CDR signed a contract with a research center (Consultation and Research Institute) for external monitoring and evaluation services). The Project Implementation Plan spells out the RAP monitoring arrangements; more specifically, it will lay down the performance indicators which will be used to monitor this part of the project and the procedures to be used. 11.3 Monitoring and Evaluation Indicators The RAP monitoring indicators will be simple but robust indicators or proxies that should be as far as possible visible and verifiable and that will, according to the nature of the impacts, measure the following key outcomes against the pre-resettlement baseline. Some key monitoring and evaluation indicators are shown in the following table. Table 11-1: Verifiable Indicators for Monitoring and Evaluation Implementation of Resettlement Activities 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 Managing resettlement related grievances Timeliness of response, Number of grievances solved v. number of grievances escalated to another level Delivery of technical assistance, relocation, payment of Facilitation of access to technical and transitional subsistence and moving allowances development assistance and transitional allowances Delivery of income restoration and development Ability of individuals and households to assistance. Payment of compensation to PAPs in various restore sources of income categories, according to the compensation policy described in the RAP; with special focus on the vulnerable groups and avoiding discrimination based on gender, tribal backgrounds or any other factors Public information dissemination and Timeliness, quality, and effectiveness of consultation procedures consultation and information disclosure Frequency of interaction/communication with PAPs 46 Appendix: Minutes of Consultation 47 Municipal Investment Program (MIP) Public Consultation Meeting Beirut, 08.08.2019 I- Public Consultation Attendees: Municipalities: Al Qobayat Zgharta – Ehden Hermel Batroun Douma Bchare Kfardebian Jounieh Hazmieh Haouch Mousa – Anjar Baaklin Union of Municipalities of Northern Iklim al Kharoub Jezzine Rachaya Marjaoun Hasbaya Bent Jbeil Also attended the Public Consultation representatives of CDR, Ministry of Interior and Municipalities and World Bank Consultants. For the full list of attendees, please check Appendix 5. II- Introduction: The Public Consultation Meeting was held at Markazia Monroe Hotel – Beirut Down Town on Thursday 8 August 2018, and was attended by 15 municipalities included in the Project. Mrs. Wafa Charafeddine (CDR) gave an opening statement in which she highlighted the importance of the project, as it is directly targeting the secondary municipalities in the country. She presented the background of the project and it’s link with the National Land Use Strategy of the Lebanese Territory (SDATL) adopted in 2009 by the Lebanese Government. 48 Mr. Sami Feghali (CDR) explained the modalities of the Project preparation. He mentioned the 18 municipalities benefiting from the project criteria taken into account in selecting the municipalities, and gave a presentation of the Lebanon Municipal Investment Program which included an overview of project components, and Investment window and indicative eligible subproject type (presentation attached, appendix 3). Then Ms. Matilda El Khoury (CDR Consultant) highlighted the importance of Environmental and Social Safeguards and explained the Environmental and Social Guidelines and Instruments used in World Bank funded projects to ensure sound and optimum project design, implementation and operation. She further explained the mechanisms and procedures used during the various project phases, including the development and implementation of Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF)as well as a Grievance Redress Mechanism (GRM).. (presentation attached, appendix 3) The World Bank Consultants (Mr. Rami Semaan and Mr. Mousbah Rajab) presented the phase of preparation of a project taking into account the environmental and social aspects as well as the resettlement policy that should apply in case of a land acquisition. They also presented pilot projects to be target in some of the municipalities of the Lebanon Municipal Investment Program. (presentation attached, appendix 3) III- Discussion: The discussion highlighted the following topics: • Municipalities’ representatives expressed their regards vis-à-vis the World Bank and the Council for Development and Reconstruction for initiating the Lebanon Municipal Investment Program taking into consideration their limited resources. 1- The Municipalities’ representatives discussed with CDR Team the selection procedures to be adopted for the sub-projects to be implemented under Component 1 of the Project. And also the 3 thematic investment windows: City Competiveness, City Greening/Resilience and City Mobility. 2- Most of the Municipalities’ representatives agreed to carry out a consultation with the Municipalities to get their approval for activities to be implemented. 3- CDR Team mentioned that the sub-projects to be financed out of the component 1 of the project do not tackle the sectorial projects like solid waste, water, wastewater… 4- One of Municipalities’ representatives raised the issue of land acquisition (land expropriation), CDR Team replied that projects requiring land acquisition might not be subject to financing in the component 1 of the MIP project. 49 5- Municipalities’ representatives were informed that an in-kind contribution of 10% of the project amount need to be provided by the municipality. 6- Municipalities’ representatives were pleased to learn that the projects will be developed and implemented in accordance to comprehensive Environmental and Social Safeguards, Guidelines and Instruments, which will ensure sound project development and implementation. They further conveyed that they are glad that the process involves public consultation, as well as the establishment of roles and responsibilities of the various parties. 7- Municipalities representatives conveyed that in case expropriation is needed they will consider financing the cost of expropriation. 8- Municipalities’ representatives were informed that the Phase I of the project is a loan to the central government that need to be repaid to the World Bank. 9- Municipalities’ representatives were informed of the Phase II of the project were 50M$ will be used as guarantee for the Lebanese commercial banks to finance contractors for municipal investment on PPP basis. 10- CDR Team explained that the targeted municipalities when choosing the sub-project to be financed out of the MIP will help leverage other surrounding municipalities. 11- The World Bank Consultants presented pilot projects to be subject of financing from the MIP and are: - Batroun District Development Project (Batroun); - Creation of an urban green space (Bint-Jbeil); - Rehabilitation and enhancement of the historic center (Hasbaya); - Jezzine Heritage Trail Project (Jezzine); - Upgrading the coastal road of Minieh and creation of an industrial zone (Minieh); - Public spaces and soft mobility in Ehden (Ehden), - Rehabilitation of Zgharta’s historic city center (Zgharta). 12- One of the representative of Batroun Municipality presented the work that the municipality had undertaken on mapping the city using the GIS system. 13- Finally, participants express their satisfaction of the CDR initiative to consult with the Municipalities at that stage of project preparation. 50 Appendix 1 Invitation Letters sent to Stakeholders 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Appendix 2 List of invitees to the Public Consultation 70 Public Consultations On Lebanese Municipal Investment Program 8 August 2019 List of Invitees Attendee Name Tel. & Email I- Ministry of Interior & Municipalities II- Municipalities Mayor of Al Qobayat Abdo Makhoul Abdo 06/350005, 352005 Mayor of Zgharta – Ehden Antonio Frangie 06/666248 - 9 Mayor of Hermel Sobhi Saker 08/200004 Mayor of Batroun Marcelino Al Harak 06/642170 - 642032 Mayor of Douma Joseph El Maalouf 06/520015 Mayor of Bchare Fredy Keyrouz 06/671068 - 088 - 672688 Mayor of Kfardebian Bassam Salame 09/710160 - 711160 Mayor of Jounieh Jouan Hbeich 09/913000 - 638401 - 2 Mayor of Hazmieh Jean Al Asmar 05/450198-9, 05/456386, 05/452050 Mayor of Haouch Mousa Oartks Khochyan 08/620790 - 1 – Anjar Mayor of Baaklin Abdallah Ghousayni 05/300528 - 305618 President of the Union of Ziad Hajjar 03/620840 Municipalities of Northern Iklim al Kharoub Mayor of Jezzine Khalil Harfouch 08/780377 - 024 - 026 - 027 Mayor of Rachaya Bassam Dalal 08/595011 - 590011 Mayor of Marjaoun Amal Hourani 07/830014 Mayor of Hasbaya Labib Al Hamra 07/551058 Mayor of Bent Jbeil Afif Bazi 07/450452 - 3 - 4 71 Appendix 3 Presentations Given during the Public Consultation Event 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Appendix 4 Photographic documentation of the consultation session 96 97 98 99 100 101 102 Appendix 5 List of Attendees 103 104 105 106 107