RP728 V2 Oron Gas Pipeline Resettlement Action Plan: Oron Gas Pipeline, Akwa Ibom SEPTA ENERGY SM State, Nigeria 28 March 2014 www.erm.com Delivering sustainable solutions in a more competitive world FINAL REPORT Septa Energy Nigeria Limited Oron Gas Pipeline Resettlement Action Plan: Oron Gas Pipeline, Akwa Ibom State, Nigeria 28 March 2014 For and on behalf of Environmental Resources Management Approved by: Piers Touzel Signed: Position: Partner Date: 18 July 2012 Authors: Elisa Xiao Kai Shang Piers Touzel TABLE OF CONTENTS EXECUTIVE SUMMARY I 1 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 POLICIES AND OBJECTIVES OF RAP PREPARATION 1 1.3 PROJECT DESCRIPTION 2 1.4 SUMMARY OF PROJECT LAND TAKE 3 1.5 MINIMIZING RESETTLEMENT 3 1.5.1 Project Alternatives 3 1.6 LIMITATIONS 5 2 SOCIO-ECONOMIC BASELINE 6 2.1 ADMINISTRATIVE STRUCTURE 6 2.1.1 Government Institutions 6 2.2 COMMUNITY LEADERSHIP STRUCTURE 8 2.2.1 Village Networks and Linkages 8 2.3 PROFILE OF AFFECTED COMMUNITIES 9 2.3.2 Ethnicity, Religion and Language 10 2.3.3 Land 11 2.3.4 Communal Resources 12 2.3.5 Housing 12 2.3.6 Infrastructure 12 2.4 DEMOGRAPHICS OF AFFECTED HOUSEHOLDS 14 2.4.1 Household Income and Expense 14 2.4.2 Food and Nutrition 17 3 PROJECT IMPACTS 18 3.1 PROJECT AFFECTED LAND 18 3.1.1 Affected Cultivated Land 20 3.2 LOSS OF STANDING CROPS/TREES 20 3.3 AFFECTED SHRINES 21 3.4 CATEGORIES OF PROJECT AFFECTED PEOPLE 21 3.4.1 Agricultural Land Occupier: Customary Right of Land Occupancy 22 3.4.2 Crop / Tree Cultivator 22 3.4.3 Owner of Structures / Assets 22 3.4.4 Individuals Dependent on Communally Held Lands Resources / Assets 22 3.4.5 Vulnerable Groups 22 4 LEAGAL AND ADMINISTRATIVE FRAMEWORK 24 4.1 INTRODUCTION 24 4.2 LAND USE ACT, 1978 24 4.2.1 Background 24 4.2.2 Land Ownership and Use 25 4.2.3 Compensation Provisions 25 4.3 OIL PIPELINE ACT (1956) 26 4.3.1 Permit to Survey 26 4.3.2 Oil Pipeline License 26 4.3.3 Compensation 27 4.4 IFC PERFORMANCE STANDARD 5 27 4.4.1 Key Elements of IFC PS5 28 4.4.2 Gaps Between Nigerian Practice and International Standards 29 4.5 PROJECT LAND ACQUISITION STRATEGIES 34 5 INSTITUTIONAL ARRANGEMENTS 35 5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD RESTORATION PROCESS 35 5.2 ORGANIZATION STRUCTURE 35 5.3 RAP HANDOVER 38 5.4 GRIEVANCE MECHANISM 39 5.4.1 Potential Grievances and Disputes 39 5.4.2 Procedure for Grievance Redress 39 6 PARTICIPATION AND CONSULTAITON 41 6.1 INTRODUCTION 41 6.1.1 Objectives 41 6.1.2 Stakeholder Identification 41 6.1.3 Methodology 41 6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE 43 6.2.1 Concerns of PAPs 45 6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING 46 6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN 47 7 COMPENSATION AND INCOME RESTORATION 49 7.1 INTRODUCTION 49 7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA 49 7.2.1 Nigerian Legal Requirements 49 7.2.2 International Standards 49 7.2.3 Summary 49 7.3 COMPENSATION REQUIREMENTS 50 7.3.1 Local Requirements 50 7.3.2 International Requirements 51 7.3.3 Project Approach to Compensation 51 7.3.4 Valuation Method 52 7.4 LIVELIHOOD RESTORATION STRATEGIES 53 7.5 ENTITLEMENT MATRIX 54 8 MONITORING AND EVALUATION 58 8.1 INTRODUCTION 58 8.1.1 Objectives 58 8.2 MONITORING AND EVALUATION PLAN 58 8.2.1 Progress Monitoring 59 8.2.2 Outcome Evaluation 59 8.2.3 External Monitoring and Completion Audit 60 8.3 M&E ROLES AND RESPONSIBILITIES 60 8.4 SCHEDULE AND REPORTING 61 8.4.1 Internal Monitoring 61 8.4.2 External Monitoring 62 8.4.3 Completion Audit 62 8.5 OVERALL MONITORING SCHEDULE 62 9 SCHEDULE OF IMPLEMENTATION 63 9.1 SCHEDULE OF IMPLEMENTATION 63 10 BUDGET 64 ANNEX ANNEX A VULNERABLE GROUP LIST ANNEX B SEPTA GAS PIPELINE LICENSE ANNEX C INDIVIDUAL COMPENSATION MATRIX ANNEX D COMPENSATION RATES ANNEX E COMMUNITY CONSULTATION RECORDS LIST OF TABLES Table 1.1 Project Land/Water Use 3 Table 1.2 Land Affected by the Project 3 Table 2.1 Project Affected Villages 6 Table 2.1 Population and Gender 9 Table 2.2 Age Profile 9 Table 3.1 Project Land Use 18 Table 3.2 Affected Cultivated Land 20 Table 3.3 Project Affected Crops and Swamp 20 Table 3.4 Project Affected Trees 20 Table 4.1 Pipeline Land Right 26 Table 4.2 Gap Analysis: IFC PS 5 and Local Requirements 30 Table 5.1 Roles and Responsibilities of Land Acquisition Committee 36 Table 6.1 Participation and Consultation Methodology 42 Table 6.2 Consultation Activity Conducted to Date 43 Table 6.3 Future Participation and Consultation Plan 47 Table 7.1 Comparison of Eligibility and Entitlement Criteria 50 Table 7.2 Compensation Provision 53 Table 7.3 Entitlement Matrix 55 Table 8.1 Tentative Monitoring Schedule 62 Table 9.1 Land Acquisition and Livelihood Restoration Schedule 63 Table 10.1 Budget for Project Compensation 64 LIST OF FIGURES Figure 1.1 Alignment of the Oron Pipeline 2 Figure 1.2 Evaluation of Alternative pipeline Routes 4 Figure 2.1 Project Layout Map and Affected Communities 6 Figure 2.2 Monthly Income Distribution 14 Figure 2.3 Monthly Expenditure Distribution 14 Figure 2.4 Monthly Income Sources 15 Figure 2.5 Monthly Household Income Distribution 16 Figure 2.6 Monthly Household Expenditure 16 Figure 2.7 Money Usage of the Project Affected Households 17 Figure 3.1 Land Use Diagram 18 Figure 3.2 Project Affected Shrines 21 Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process 35 Figure 5.2 Organisation Structure of Land Acquisition Committee 36 Figure 5.3 Septa Grievance Redress Procedure 40 Figure 6.1 Community Consultation and Participation, April-May 2012 44 DEFINITIONS Term Definition Affected Area The land/water area affected by permanent acquisition and temporary use of land/water in connection with the Project. Asset Inventory A complete count, measurement and description of all affected assets including structures, crops, trees and other land attachments to be acquired. Census A field survey carried out to identify and determine the number of Project Affected Persons (PAPs) in a unit of Household. Cut-off date A day on and beyond which any person who improves land or constructs assets on land, required for project use, will not be eligible for compensation. According to Nigeria practice, this date is likely to be set following the completion of the census and land survey and asset inventory. Communal land Land that is in public use that is recognized under traditional or customary right to occupy. Such land is communally owned and under the control of village council of chiefs or village head, acting as a representative of the community. Compensation Payment in cash or payment in kind of the replacement value of the acquired property and/ or impacted assets. Displaced Persons who have formal legal rights and/or customary rights of Persons occupation to the land they occupy within the Affected Area. Economic Loss of assets or access to assets that leads to loss of income sources or other Displacement means of livelihood. Entitlements Entitlements with respect to a particular eligibility category are the compensation and other forms of assistance provided to impacted persons in the respective eligibility category. Grievance The processes established to enable property owners and other impacted Procedure persons to redress issues related to acquisition, compensation, or other aspects of resettlement. Involuntary Involuntary taking of land or impact on land or assets, resulting in direct or Resettlement indirect economic and social impacts, whether or not the PAP must physically relocate , caused by:  Loss of benefits from use of such land;  Relocation or loss of shelter;  Loss of, impact on, assets or access to assets; and  Loss of income sources or means of livelihood, whether or not the project affected person has moved to another location. Land Acquisition Taking of or alienation of land, buildings or other assets thereon for the purpose of the project. Livelihood Livelihood Restoration Plan prepared for the project. It will include details Restoration Plan of project impacts, categories of PAPs, compensation entitlement and eligibility, and how livelihood restoration will be implemented. Market Value Most probable selling price or the value most often sought by buyers and sellers. It assumes buyers and sellers have reasonable knowledge, act competitively and rationally are motivated by self interests to maximize satisfaction and both act independently and without collusion, fraud or misrepresentation. Project Affected A person that loses assets and/or usage rights and/or income generation Person (s) (PAPs) capacities (e.g. land, crops) because these assets/rights/capacities are located in the land to be acquired or used, for needs of the project. Livelihood Provision of development assistance in addition to compensation such as Restoration agricultural intensification, training, or job opportunities, needed to enable Assistance PAPs to maintain their living standards, income earning capacity and production levels. Replacement The amount that will be paid to replace the value for the land and all assets value on it, without any deductions for depreciation. Term Definition Vulnerable People who, by virtue of gender, ethnicity, age, physical or mental Groups disability, economic disadvantage or social status, may be more adversely affected by resettlement than others; and who may have limited ability to claim or take advantage of resettlement assistance and related development benefits. These include:  Women headed households without one or more family members of working age in the household. Situated within a patriarchal society, women tend to be prevented from participating in local decision- making. They also tend to lack access to independent means of income generation.  Households headed by disabled and/or elderly people (>60 years) without one or more family members of working age in the household. Those with physical or mental disability and /or old age are typically unable to access an independent means of income generation.  Households living in poverty. Those with a combined household income of less than 4,800 naira per month. ABBREVIATIONS & ACRONYMS CLO Community Liaison Officer ERM Environmental Resources Management GSA Gas Sales Agreement IFC International Financial Corporation Ha Hectare (1 ha = 10,000 m2) HH Household LA Land Acquisition on 15 m ROW LAC Land Acquisition Committee LGA Local Government Area LR Livelihood Restoration LRP Livelihood Restoration Plan M&E Monitoring and Evaluation N Naira (Nigerian currency) NGO Non-governmental Organisation NPC National Population Commission NIPP Nigerian Integrated Power Plant OPTS Oil Producers Trade Section PS Performance Standard RAP Resettlement Action Plan ROW Right of Way PAP Project Affected Person TLU Temporary Land Use on 10 m ROW EXECUTIVE SUMMARY This Resettlement Action Plan (RAP) is applicable to land acquisition for Septa’s Energy’s Oron Pipeline Project (hereafter “the Project”). Located between Uquo and Usung near Oron in Akwa Ibom State, Nigeria, the Project will affect a 25m Right of Way (ROW) along a 37.33km pipeline corridor, traversing 64 villages in four Local Government Areas (LGA), namely Esit– Eket, Urue Offong Oruko, Mbo and Udung Uko LGAs. Project land take comprises permanent acquisition of a 15m ROW to accommodate the pipeline and a further 10m for temporary use during an anticipated 18 month construction period. The primary land use along the proposed ROW is forestry and farmland and consequently the Project will result in economic displacement of land owners/users. The project will not require physical displacement of dwelling houses. A census, land survey and asset inventory of the project footprint was conducted in April – May 2012. In total, the project will affect 50 villages which have land and 14 villages which have no land but shared assets on the ROW. The project will affect 737 households who individually own land and assets on the ROW within 34 villages, along with 16 villages that land and assets are collectively owned. The Project will be implemented in accordance with applicable national and Akwa Ibom State laws and regulations, and with the IFC Performance Standard (PS) 5: Land Acquisition and Involuntary Resettlement (2012). The following underlying principles will guide planning and implementation for all Project land acquisition and associated activities: 1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline Act (1990) and all other applicable Nigerian laws and regulations. 2. The Project will compensate affected persons for loss of assets at full replacement cost. 3. The Project will treat occupancy rights as ownership rights for the purposes of compensation and will compensate accordingly. The Project will compensate the replacement cost for permanently acquired land. 4. Encroachers will be eligible for compensation of affected assets. 5. The Project will pay compensation in full prior to the occupation of land or removal of assets. 6. The Project will implement livelihood restoration measures in order to assist PAPs to restore incomes to pre-displacement levels. 7. Vulnerable groups will be identified, registered and their livelihood monitored. Specific measures for compensation and livelihood assistance will be developed and funded by the Project. 8. A grievance procedure will be accessible to all those affected by the project. 9. The Project will establish systems for monitoring and evaluation (including a completion audit) as proposed in this RAP. The Project compensation entitlements are summarised below: ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED I Compensation for Permanent Land Acquisition For permanent land acquisition, compensation for the land will be paid at full replacement cost. For cultivated land, this includes:  Market value of the land;  Improvements to the land as defined by Nigerian law;  Clearance allowance to prepare the land for farming; and  Transitional support for loss of income during the period before replacement land is available. For non-cultivated land, compensation will be paid at the market value of the land only. Compensation for Temporary Occupation of Cultivated Land For temporary occupation of cultivated land, compensation will include:  Land rental for 18 months when the land is required for construction;  Improvement of the land as defined by Nigerian law;  Clearance allowance to prepare the land for farming; and  Transitional support for loss of income. For non-cultivated land, compensation will be paid for 18 months’ rental only. Compensation Rate for Standing Crops, Trees and Assets The Project will adopt the highest compensation rates among Akwa Ibom State government rates, Oil Producers Trade Section (OPTS) rates and market prices for each affected asset. The compensation rates will be applied consistently across the four LGAs. Compensation for Shrines Cash compensation will be paid to the families and priests are to conduct required ceremonies to relocate the shrines, in addition to government compensation rates. Compensation for Swamp Cash compensation will be provided for: 1) Unmovable fishing traps and nets at market value; and 2) Transitional allowance for loss of income from swamps. Vulnerable Groups Particular attention is being given to the needs of vulnerable groups in the context of compensation. Based on consultation with those households identified as vulnerable, an appropriate additional transitional allowance will be determined, and distributed to these households, in monthly instalments, over a six month period. Vulnerable groups will be given preferential provision of: (i) skills training; and (ii) Project employment. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED II In addition, livelihood restoration measures will be developed based consultation with PAPs, including: 1) land-based schemes, including agricultural training, agricultural intensification, better storage techniques and adding value to agricultural produce; 2) Wage-based schemes to provide permanent or temporary employment opportunities to affected communities; and 3) Village infrastructure schemes to assist community access to better road. A Land Acquisition Committee will be formed to manage the compensation and livelihood restoration (LR) processes. Responsibilities of key members are listed below: Positions Roles and Responsibilities Livelihood Restoration Management oversight and primary responsibility for the entire Manager process and project Legal Manager Legal advice, produce all agreements and routinely vet process Livelihood Restoration Coordinate and oversee the project in the field, ensuring practical Officer application of the principles of sustainability. Finance representative Oversee financial details Community Liaison Link between land acquisition and community development Officers programme, lead grievance process; NGO/Consulting Firm Facilitators, trainers, and coordinator of external monitoring Government Observers, countersign payment and participate grievance representatives redressing process as needed. A project grievance process has been developed and will be communicated to affected communities throughout the land acquisition planning process, including final RAP disclosure town hall meetings. To ensure that the land acquisition (including associated compensation and livelihood restoration) is carried out as planned, internal and external monitoring will be undertaken throughout the process. It will consist of two components, namely progress monitoring and outcome evaluation. Monitoring will be initiated at an early stage in the land acquisition process and will continue for approximately two years. In addition, a completion audit will be conducted by a third party monitor to be appointed by Septa Energy, upon the completion of pipeline installation and all associated measures in this RAP. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED III 1 INTRODUCTION 1.1 BACKGROUND Environmental Resources Management (ERM) was commissioned by Septa Energy Nigeria Limited (the Client) to prepare a Resettlement Action Plan (RAP) for the proposed Oron Pipeline, a 38km gas pipeline between Uquo and Usung near Oron in Akwa Ibom State, Nigeria (The Project). The Project will be implemented in accordance with applicable national and Akwa Ibom State laws and regulations, and by the IFC Performance Standard (PS) 5: Land Acquisition and Involuntary Resettlement (2012). The area affected by the Project will be the pipeline Right of Way (ROW), which is 25m wide along the 37.33km corridor. The pipeline will cross four Local Government Areas, namely Esit–Eket, Urue Offong Oruko, Mbo and Udung Uko in Akwa Ibom State. The primary land use along the proposed ROW is forestry and farmland. The Project will trigger economic displacement of land owners/users. However the project does not require any physical displacement (eg relocation of dwelling houses). 1.2 POLICIES AND OBJECTIVES OF RAP PREPARATION The objectives of the RAP are to:  Avoid or at least minimize involuntary resettlement wherever feasible by exploring alternative project route designs;  Mitigate adverse social and economic impacts from land acquisition or restrictions on affected persons’ use of land by:  providing compensation for loss of assets at replacement cost; and  ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation, and the informed participation of those affected and;  Improve or at least restore the livelihoods and standard of living of displaced persons. The Project is committed to providing economic benefits to those affected by Project activities, and as such commits to the following enhancement measures (1):  Use local procurement and employment, where possible, to enhance local benefits; and  Support development projects (including shared infrastructure), based on community needs and consultation. In addition to setting out the procedures and actions that will be taken to achieve these objectives, the implementation arrangements, estimated costs (1) Septa Community MoUs to Enhance Local Benefits ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 1 and provisional schedule associated with RAP implementation are provided, as are plans for grievance management and monitoring and evaluation. 1.3 PROJECT DESCRIPTION Septa Energy Nigeria Limited and Frontier Oil Limited recently executed a Gas Sales Agreement (GSA) with the Nigerian Integrated Power Plant (NIPP) to deliver natural gas to the Calabar NIPP Plant. The Project involves the installation of an 18” gas pipeline from Uquo to Usung near Oron to supply approximately 130 MMScfd of natural gas to the NIPP. The proposed pipeline will be constructed starting from the Ekid Gas Plant at Edor in Esit – Eket Local Government Area, in the Uquo Marginal field to Usung in Udung Uko Local Government Area of Akwa Ibom State. The pipeline route (see Figure 1.1) traverses 51 villages in four Local Government Areas namely Esit–Eket, Urue Offong Oruko, Mbo and Udung Uko Local Government Areas of Akwa Ibom State. The route lies within co- ordinates 616916.02 – 647807.40 E and 66675.55 – 84270.85 N in the lower rainforest region of the Niger Delta. A metering and regulating station (not within the scope of this RAP) will be installed at the Tie-in station at Usung near Oron on an existing 24” gas Pipeline originating from the Calabar NIPP. The 24’’ Pipeline is owned by the Niger Delta Power Holding Company and has a total length of about 107Km. Figure 1.1 Alignment of the Oron Pipeline ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 2 1.4 SUMMARY OF PROJECT LAND TAKE Project land take comprises permanent acquisition of a 15m ROW to accommodate the pipeline and a further 10m for temporary use during construction. Table 1.1 Project Land/Water Use Width Total Total No. No. of No. of No. of No. of of ROW Area of Villages Village Affected Affected (m) (hectare) Affected that land/water Individual People* Villages land/water collectively Household is affected owned Permanent 15 58.55 64 50 16 624 ~4,400 Land Acquisition Temporary 10 38.91 64 50 16 622 ~4,300 Land Use Water 25 1.14 19 16 3 37 ~300 Areas Note: * the number of affected people does not include population in villages that land/water is collectively owned by the community. In addition to 50 villages which land and water will be affected, 14 villages do not have land/water right but have shared assets on the ROW. In total, 737 households with a population of approximately 5,100 people will be affected by project land/water use. Details of land affected by the project are presented in Table 1.2. Table 1.2 Land Affected by the Project Affected Land/water Land Area Land Area Local Water Area Area Pipeline Affected by Affected by Government (ha) Affected (% Length (km)* Permanent Temporary Area (LGA) of total Use (ha) Use (ha) affected area) Esit Eket 18.66 27.88 18.66 0.92 48.1% Udung Uko 7.87 11.80 7.87 0.00 20.0% Urue Offong 8.44 12.66 8.37 0.21 21.6% Mbo 4.13 6.20 4.00 0.00 10.3% TOTAL 39.11 58.55 38.91 1.14 100% Note: the pipeline length in each LGA area is calculated based on the area of affected land. 1.5 MINIMIZING RESETTLEMENT 1.5.1 Project Alternatives Four alternative pipeline routing options were evaluated before selecting the current routing. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 3 Figure 1.2 Evaluation of Alternative pipeline Routes ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 4 In considering all four project options, the Project developers took into consideration the resettlement implications of each via the following criteria:  Amount of physical displacement of people living along the route;  Impacts on livelihoods;  Length of pipeline; and  Number of Local Government Areas traversed. Alternative 2 was selected since it does not require physical displacement of dwelling houses. 1.6 LIMITATIONS The report is based on information provided by Septa Energy and by field surveys between March and May 2012. The information and statements provided in this report are not to be construed as legal advice. This report, including annexes, supplements and related documents, has been prepared solely and exclusively for the use of the Client, for the purpose of the Project. ERM disclaims any responsibility to the Client or any other person for the transfer or the use of the report for any purpose other than that for which it was originally prepared. The report is confidential to the Client and the specified recipients. Other parties may only rely on this report pursuant to a written Reliance Letter with ERM and subject to the same contractual conditions as the Client. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 5 2 SOCIO-ECONOMIC BASELINE 2.1 ADMINISTRATIVE STRUCTURE 2.1.1 Government Institutions The Federal Republic of Nigeria is made up of 36 states and one federal capital territory and has a mixed legal system of English common law, Religious laws and traditional law. Uyo is the capital of Akwa Ibom State, which comprises 31 Local Government Authorities. The Project will pass through 64 villages in four Local Government Areas (LGAs) namely Esit–Eket, Urue Offong Oruko, Mbo and Udung Uko LGAs, in Akwa Ibom State (refer to Figure 2.1). In total 64 villages are affected, including 14 villages that have share assets on the ROW (see Table 2.1). Figure 2.1 Project Layout Map and Affected Communities ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 6 Table 2.1 Project Affected Villages Gazette LGA No. Village Name (Y/N) 1 Adahafriyo Y 2 Afia Ekpene Akpautong Y 3 Akpautong Y 4 Edida Edo Y 5 Edo Atai Y 6 Etebi Akwata Y 7 Idua Edo N 8 Idung Abidiang Y 9 Idung Akpe Atuadim N 10 Idung Asua -Etebi Y 11 Idung Ataudim Y 12 Idung Imossan Etebi Y 13 Idung Ita Etebi Y 14 Idung Ntia N 15 Idung Obong N Esit Eket 16 Idung Okpokpo N 17 Idung Okpudo Y 18 Idung Udo Etti N 19 Idung Udonsak Y 20 Idung Ukok Y 21 IdungAssan Etebi Y 22 Ikot Eyo Edo N 23 Inne Akpautong Y 24 Mbakuyo-Etebi Y 25 Odoro Nkit Y 26 Odoro Ukuk N 27 Oniok Edo Y 28 Uqua Isi Edoho Y 29 Urua Okok Y Udung Uko 30 Eniongo Y 31 Eyo Fin Y 32 Eyo Nsek Y 33 Eyo Ukpe Y 34 Eyo Uliong Y 35 Eyo Uwe Y 36 EyoAting Y 37 Eyoebieme N 38 Udung Esio Y 39 Udung Otok Y 40 Edikor Eyibia Y 41 Edikor Eyobiosio Y 42 Edikor Eyokpo Y 43 Eyo Esio Osung Y 44 Eyobisung Y 45 Eyoko Y 46 Eyotai Y 47 Itak Ibang N 48 Udung Adatang Y 49 Usung Y Urue Offong 50 Edok-Oruko Y /Oruko 51 Eyobiassang Y 52 Eyokwong Y 53 Oduonim Isong Inyang Y 54 Oduonim Oro Y ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 7 Gazette LGA No. Village Name (Y/N) Urue Offong 55 Ubodong Y /Oruko 56 Udung Ukpor N 57 Udung Uwe Y 58 Akai-Owu Y 59 Isong-Inyang Udesi Y 60 Osu-Udesi Y Mbo 61 Ubokpo-Udesi Y 62 Udung Ikpang Y 63 Ukoitak Eyokpo Y 64 Ukoitak Eyulor Y Note: 1. Village No 30-39, ie Eniongo, Eyo Fin, Eyo Nsek, Eyo Ukpe, Eyo Uliong, Eyo Uwe, EyoAting, Eyoebieme, Udung Esio, Udung Otok belong to a Village Group called Ukukim. 2. Villages highlighted with shadows are the 14 villages that have no land but shared assets with other villages on the ROW. Information provided in the following sections of this chapter was obtained through a census and socio-economic survey of all affected persons in the project area in April-May 2012. The census included a face to face survey to identify the number of PAPs. The socio-economic survey covered demographics, income and living conditions. Village information such as leadership structures and infrastructure were obtained through village consultation and focus group consultation. Unless otherwise stated, all information presented in this chapter is obtained through primary field surveys. 2.2 COMMUNITY LEADERSHIP STRUCTURE Council of Chiefs and Village Heads The council of chiefs, led by the village head, is the most powerful administrative institution at the community level. The village head (usually certified by the Government) represents the Government at the village level in relation to law and order, as well as in decision-making activities. Village Council Each village has a village council, headed by a council chairman. It usually consists of a chairman, a vice chairman, a secretary, a treasurer and a financial secretary. In some villages, the women’s leader and community head’s wife are also members of the community council, as representatives of women. 2.2.1 Village Networks and Linkages There are a number of organisations at the village level. These include council of chiefs, village council, women’s associations (forums), youth associations, fishermen cooperatives etc. These groups often play a role in the socio-economic development of the communities. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 8 2.3 PROFILE OF AFFECTED COMMUNITIES Population and Gender The population of the four affected Local Government Areas through which the pipeline will pass is shown in Table 2.2. Table 2.2 Population and Gender Esit–Eket Urue Offong Oruko Mbo Udung Uko Total 63,701 71,199 104,012 53,278 Male 33,942 38,105 55,395 28,486 Female 29,759 33,054 48,617 24,792 Male (%) 53.25 53.52 53.26 53.47 Female (%) 46.72 46.42 46.74 46.53 Source: National Population Commission (NPC, 2006) The census identified 737 project affected households and 5,100 affected individuals. This census indicated that approximately 45.8% of the individuals from the affected households were female, slightly below the regional average of 46.6%. Household Size The average household size for the affected households is seven persons. Approximately 60% of households have 5-10 members in one family. Large family are common within the project affected area, and multiple generations often constitute one household. Among the households covered by the census, 14.4% households consist of more than 10 members. Age In keeping with age trends at the national and state levels, the affected community population is quite young. Approximately one-third (32%of the PAPs are between the ages of 6-18 years, with a further 12.9% below the age of five. The working age population (19-50 years) constitutes 47.8%of the affected population, among them 40.5% are below 40 years. The high number of youths in the project area carries particular socio- economic implications. In addition to pressures on social infrastructure, such as education and housing, this young population also increases competition for employment opportunities. It may also exacerbate existing pressure on available land for cultivation, which has traditionally been a fall back option in the absence of other viable employment. Accordingly, the youth are suffering from lack of opportunity to establish a steady income. Table 2.3 Age Profile Males Females Sub-total (Frequency) (Frequency) (Frequency) (Percentage) 0-5 years 359 278 637 12.9% ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 9 Males Females Sub-total (Frequency) (Frequency) (Frequency) (Percentage) 6-18 years 832 747 1,579 32.0% 19-30 years 698 666 1,364 27.6% 31-40 years 331 308 639 12.9% 41-50 years 191 168 359 7.3% 51-60 years 111 74 185 3.7% >60 years 136 39 175 3.5% Total 2,658 2,280 4,938 100% * Age of 138 persons (including 93 males and 45 females) is not available during the census. Education Level Within the project affected area, around 20% of the adults are illiterate, and one quarter has been educated only to primary school level. Over 40% of adults received secondary school. Less than 10% of the family adult members have educated to higher national diploma or above, including about 3% bachelor and 2% master or above. Professional or technical training levels in the project affected area are low. This is due in part to the lack of training opportunities available in this area, along with a lack of work opportunities where professional training could be applied. 2.3.2 Ethnicity, Religion and Language Ethnicity The main ethnic groups in the project affected area include Ekid (72.5%), Oro (18.8%) and Ibibio (8.7%). On-site observation revealed that customs, diets and traditional modes of dress tend to be similar throughout the project area, although there different ethnic groups. The ethnicity status of PAPs is not considered to make any ethnic groups particularly vulnerable. Religion The majority of PAPs are practicing Christians, with over 97% attending church on a regular basis. Despite the influence of Christianity, cultural and traditional festivals associated with fishing and farming are still widely recognized and celebrated in the project affected area. Observance includes visiting and presenting sacrifices at sacred sites (eg shrines) in and around their communities. Approximately 1.7% report that they visit traditional shrines on a regular basis. This low level of traditional religious observance could be due to the fact that many residents do not visit a shrine on a regular basis, but instead do this on special occasions or when considered necessary. In some of sacred forests/shrines, members of the community are not allowed to harvest trees for any purpose or hunt animals in them, as such activities are forbidden and entry into these sacred places is usually followed with some definite steps. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 10 Language The main languages spoken in the project area are Ekid, Oro and Ibibio. However, English is common across the project-affected communities. Approximately 70% of PAPs are able to read and write English, and 76% can speak English. 2.3.3 Land Land Tenure and Ownership In most of the Project-affected area, men inherit land from their fathers. Although, legally, women have a legal right to inheritance in Nigeria, in practice men rarely pass on land to their female children and as a consequence, few women own land in the community. After the death of a man, land and property is usually passed on to sons, if they are old enough, or to other male relatives, such as brothers or uncles. This allows land to remain within the family. Women can own land in the community through outright purchase and by inheritance (although this is rare). Women can also temporarily own land by leasing- women buy land use for specific number of years specifically for farming, once the agreed number years expire, their ownership of the plot expire. Women can also own land through pledge – a situation where a landowner uses a parcel of land for collateral against a loan for a specific period of time. Once the landowner pays the debt, he reclaims the land. Land Cultivation The most common type of arable crop within the affected communities is cassava, followed by bitter leaf, maize, melon, cucumber, native apple, guava, pepper, banana, yams and plantain. Cassava is the most important crop grown for household subsistence, reported by almost all PAPs. Box 2.1 is the seasonal calendar which shows key agricultural activities throughout the year. Box 2.1 Seasonal Calendar  November –January: farm clearing; planting of cucumber and melon at the swamps during the dry season, mainly conducted by men.  January – March: planting of cassava, maize, cucumber, melon, mainly by women.  April – May: weeding, carried out by women.  April to September: rainy season; women crack palm kernels, transport firewood from the farm/forest to the house while the men fish with hook and line in the stream and swamps  January – December: Harvest of cassava done all year round, mainly by women. Farming activities undertaken by men include land clearing, making mounds for yam and cassava, cutting palm fruits, harvesting yam, (some harvest cassava also) and cutting of firewood. In contrast, women plant cassava, vegetables, maize and legumes such as melon, cumber, and cocoyams. They also weed and harvest their crops. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 11 2.3.4 Communal Resources Forest The presence of forests in the project affected area provides an area for hunting of mammals, birds, and reptiles for consumption and sale. It forms an important component of food security for some households in the affected communities. 56% of affected people own a rifle for hunting. The forest in the project-affected area is also exploited for timber and/or non-timber products (eg palm fruits, snails and medicinal plants), for use or sale by the local communities. Water Resources The steams and creaks in the affected communities are important fisheries. On average, each household own at least three fishing nets. 44% of the PAPs reported that they own a canoe for fishing and 15% indicated that they own a motorised boat. 2.3.5 Housing Local dwelling houses include the following major types:  Brick - Concrete Structure (35.4%).  Mud with Corrugated Iron (Zinc) (25.9%)  Mud with Thatch Roof (24.4%); and  Brick-wood House with Steel Roof (14.3%). No residential structures or shelters will be affected by the pipeline installation. 2.3.6 Infrastructure The quality of infrastructure is poor in the project affected communities. Affected communities have reported that this is an impediment to economic growth. Electricity In the project affected areas, local communities have access to electricity. However, the supply is unreliable and nearly all affected residents complain about its irregularity. Part of the reason for this poor supply is that the local transformers are small, which leads to low supply for frequent cut-offs. This is evidenced by the fact that kerosene is used by 79%of PAPs for lighting. In addition, electricity generators are popular within the affected communities. 82% of the households own at least one generator. Telecommunications Residents in the affected communities have access to mobile phones and all national networks are available for use. Mobile communications are affordable ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 12 to most residents. This is evidenced by the fact that each household owns an average of 2.62 mobile phones. Given the average household size is about seven members, it indicates that around one-third (37%) of residents own a mobile phone. Radio is a common method of communication in the affected communities and each household own 1.8 radios. On average, all households own a television (1.3 per household). Road and Communication Network Except for Eyotai and Uti Villages that can be accessed only by boat, other 61 villages can be accessible by land. Communities in the project affected area are served by unpaved roads that link them to main roads to LGAs. The condition of roads within the affected communities is generally considered by PAPs to be ‘poor’, or ‘unsatisfactory’. Since commercial buses do not service the local area, transport of goods and people out of the communities is either by private cars, motorcycles, bicycles or wheelbarrows. Motorcycles are the most common form of transportation used by local residents and nearly each household (98%) owns at least one. Motorbikes are used by local residents to access the main roads to LGAs, particularly when the roads become impassable for cars. Wheelbarrows are used by the local residents to carry goods within the local community. Bicycles are owned by 72% of households on average. Due to the poor condition of local roads, cars and trucks are less common, owned by 16% of PAPs within the project- affected area. Water supply The main sources of drinking water for affected households are streams (96.4%) and boreholes (53.6%), supplemented by rain harvesting (46.4%) and rivers (10%). Given that boreholes are located within village residential area, from where the distance to the Project ROW is about 1km on average, the pipeline installation may not affect community boreholes. None was observed to be affected during the survey. Approximately three-quarters (74.2%) of PAPs within the affected communities indicated that there is a shortage of potable drinking water. 16.4% PAPs reported that the water is abundant as they have drinking water sources in or near their homes (normally from boreholes). The average distance to the drinking water sources is 944m, an estimated 30 minute round trip to and from the water source. Recreational Facilities Communal places for recreational activities and meetings include town halls and other structures, in many cases financed by oil and gas companies. Almost all the affected communities have town halls or other structures for holding meeting and recreational activities. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 13 Educational Institutions Nearly half (43%) of the consulted villages in the project affected area have a primary school, while one quarter of villages have a secondary school and kindergarten. There is no technical training school in the Project- affected area. That may explain why professional or technical training levels in the project affected area are low in the Project Area (see Section 2.3). 2.4 DEMOGRAPHICS OF AFFECTED HOUSEHOLDS 2.4.1 Household Income and Expense Overview This section presents details of the livelihood patterns of the 323 PAPs who provided data during the socio-economic survey in April-May 2012. The monthly income of PAPs ranges from N2,500 to N1,190,250 (see Figure 2.2) while the monthly expense ranges from N1,900 to N795,000 (see Figure 2.3). The mean monthly net income of the affected communities is N37,990 per household. Figure 2.2 Monthly Income Distribution (Unit: Naira, 2012) 100% 80% Commulative Distribution 60% Percentages 40% Probability Distribution 20% 0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Monthly Household Income Figure 2.3 Monthly Expenditure Distribution (Unit: Naira, 2012) 100% 80% Commulative Distribution 60% Percentages 40% Probability Distribution 20% 0% - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Monthly Household Expenditure ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 14 Income Across the project affected area, major income of PAPs is land-based, including farming, gardening, livestock and poultry breeding, fishing and hunting, which accounts for 60.9% of total income. Although 65% of the PAPs engage in some form of small business, however it only accounts for 29.1% of the total income. Figure 2.4 Monthly Income Sources 2.0% Farming 1.7% 23.5% Gardening 29.1% Livestock breeding Non-timber forest product Fishing 11.6% Hunting Wages 6.3% 8.0% Small Business 1.4% 5.7% 10.6% Rental Financial subsistence Note: Financial subsistence includes government allowances and financial assistance from family members or relatives. Most households reported having a combined monthly income of over N90,000 (USD564)(1). However 2.2% of affected households, with an income below the national poverty line (N4,800 per month per household), are considered to be impoverished under Nigerian standards(2). Using the World Bank Poverty Line of (USD 1.25 a day per capita) (3), the proportion of affected households living in poverty rises to 26.2%. Considering 70% of Nigerian population are under World Bank Poverty Line (2007)(4), the affected people in the Project-affected area have a higher average income than the national average. (1) Based on a currency exchange USD 1= Naira 159.6 as of 28 May 2012. (2) This equates the official poverty line in Nigeria. (3) The World Bank default poverty line of $38.00 per month at 2005 Purchasing Power Parity is the ’USD1.25 a day" line. (4) https://www.cia.gov/library/publications/the-world-factbook/fields/2046.html ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 15 Figure 2.5 Monthly Household Income Distribution 2.2% 9.6% Below N 4,800 14.4% N 4,801 - N 20,000 48.1% N20,001 - N 41,895 N 41,896 - N 90,000 N 90,000+ 25.6% Note: The census indicated the average household size is seven members. In the context of the affected communities, the World Bank poverty line is at N 41,895 per household, i.e. USD1.25 per person*7 persons per household *30 days per month* N159.6 / USD (exchange rate) = N41,895 per household per month. Expenditure The largest average monthly spend of PAPs was reported to be food (23.7% of total expenditure), production costs/agricultural inputs (15.5%) and education (13.3%). Based on a sum of the items reported, the average total monthly expenditure was N123,198 (USD 772) per household. Given there are seven persons a household, the per capita daily expenditure is about USD 3. It should be noted that there is evidence that incomes may have been exaggerated during the process of socio-economic survey. Figure 2.6 Monthly Household Expenditure 4.2% Production cost 18.5% 12.5% Housing Food Energy 6.3% 5.3% Civil affairs Transportation 6.7% Telecommunication Medical 6.6% 21.3% Clothing Education 8.3% 3.3% Others 7.0% ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 16 How to Use the Compensation When asked how additional family money (eg. cash compensation from Septa land use) is spent, almost half (45.9%) of PAPs want to build a house. The other three proposed usages of the money include small businesses (19.9%), family consumption (17.3%) and investment on agricultural production (16.1%). Figure 2.7 Money Usage of the Project Affected Households Build a house 0.3% 0.6% Invest in agricultural 17.3% production Start a small business 45.9% Use it for family consumption 19.9% Debets 16.1% Medical treatment 2.4.2 Food and Nutrition On average, PAPs eat fish 27 times per month, almost once per day. Meat is consumed 15 times per month, or once every other day. Fish is common since it can be caught from the rivers and streams in the local area. While the meat is mainly pork brought form the market. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 17 3 PROJECT IMPACTS 3.1 PROJECT AFFECTED LAND Project land take comprises permanent acquisition of a 15m ROW to accommodate the pipeline and a further 10m for temporary use during construction as shown in Figure 3.1. Figure 3.1 Land Use Diagram Survey Marker (cast concrete 20cm x 20cm with center pole) 250m between North Side of Survey Line markers along survey route 5m NOT USED (5m) 15m GAS PIPELINE PERMANENT RIGHT OF WAY (15m) 10m TEMPORARY USE (10m) South Side of Survey Line All information presented in this chapter was obtained through primary land survey and asset inventory conducted in April-May 2012. Table 3.1 presents details of affected land/water and number of affected households. Acronyms used in the table include:  LGA: Local Government Area;  LA: Land Acquisition;  TLU: Temporary Land Use;  HH: Household Table 3.1 Project Land Use No. of HHs No. of HHs Area of No. of HHs LA TLU LGAs Villages Affected by Affected by Swamp Affected (ha) (ha) LA TLU (ha) by Swamp Esit Akpautong 5.04 149 3.36 150 0.0040 5 Eket Edida Edo 0.58 9 0.39 9 Edo Atai 0.63 6 0.42 6 0.0015 1 Etebi Akwata 1.54 5 1.03 5 Idung Assan Etebi 0.77 0.51 Idung Ita Etebi 0.75 16 0.50 16 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 18 No. of HHs No. of HHs Area of No. of HHs LA TLU LGAs Villages Affected by Affected by Swamp Affected (ha) (ha) LA TLU (ha) by Swamp Idua Edo 0.35 3 0.23 2 0.0006 2 Idung Okpudo 1.81 6 1.20 6 0.0310 6 Esit Idung Asua - Etebi 2.89 28 1.92 28 0.0048 4 Eket Idung Ntia 0.17 2 0.11 2 Idung Udonsak 1.43 36 0.97 36 0.3585 2 Ikot Eyo Edo 0.43 12 0.26 11 0.1325 2 Mbakuyo-Etebi 3.08 38 2.20 43 0.0155 6 Odoro Ukuk 1.24 44 0.83 43 Odoro Nkit 1.32 20 0.93 21 0.0003 1 Oniok Edo 2.02 31 1.35 31 0.3750 5 Uqua Isi Edoho 0.78 28 0.52 28 Urua Okok 3.05 32 1.93 30 0.0003 Itak Ibang 0.45 0.30 Edikor Eyibia 2.14 1 1.43 1 Eniongo 2.01 28 1.35 29 Eyoebieme 0.23 0.15 Edikor Eyibia 1.28 1 0.85 1 Eyobisung 0.44 1 0.30 1 Eyoko 0.44 0.30 Edikor Eyokpo 0.53 1 0.35 1 Udung Eyo Nsek 0.38 2 0.25 2 Uko Eyotai 0.45 0.30 Eyo Ating 0.44 1 0.30 1 Eyo Ukpe 0.30 0.20 Eyo Uliong 0.38 0.25 Udung Adatang 0.45 1 0.30 1 Udung Otok 0.30 0.20 Udung Esio 0.30 0.20 Ukukim** 0.84 0.56 Usung 0.45 0.30 Edok 1.77 27 1.24 30 0.0010 1 Eyokwong 0.35 0.23 Eyobiassang 0.38 1 0.25 1 Oduonim Isong Urue 2.48 1.65 0.0800 Inyang Offong Oduonim Oro 0.34 0.23 Ubodong 2.43 1.62 0.0450 Udung Ukpor 2.01 9 1.34 9 Udung Uwe 2.90 49 1.81 45 0.0875 1 Akia Owu 0.94 30 0.60 26 Idung Ikpang 0.84 1 0.57 1 0.0002 1 Osu Udesi 1.21 0.69 Ubokpor Udesi 0.41 1 0.27 1 Mbo Isong Inyang 0.45 2 0.30 2 Udesi Uko Itak Eyulor 2.33 2 1.55 2 Uko Itak Eyokpo 0.03 1 0.02 1 TOTAL 58.55 624 38.91 622 1.14 37 * The shaded area indicates villages which land/water are collectively owned by the community. ** The asset inventory for the Ukukim Village Group refers to the communal assets shared by the ten villages, i.e. Eniongo, Eyo Fin, Eyo Nsek, Eyo Ukpe, Eyo Uliong, Eyo Uwe, EyoAting. Eyoebieme, Udung Esio, Udung Otok. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 19 In total, 50 villages will be affected by permanent land acquisition within the 15m ROW; among them 16 villages collectively own the land (i.e. number of affected household is not shown in Table 3.1). In addition 624 households within 34 villages who individually own land will be affected. 50 villages will be affected by temporary land use by a 10m ROW, among them 16 villages collectively own the land. In addition 622 households who individually own land within 34 villages are affected. Sixteen villages will be affected by loss of water area (swamps). Three villages collectively own the swamp. In addition, 37 households in 13 villages will be affected by the water use. 3.1.1 Affected Cultivated Land Among affected project land, 21.91 ha is cultivated land with standing crops/trees on top of it. Loss of cultivated land is presented as below. Table 3.2 Affected Cultivated Land LGAs Community Owned Individual Owned Total Esit Eket 1.46 11.23 12.69 Udung Uko 0.42 1.59 2.00 Urue Offong 1.97 3.13 5.10 Mbo 1.38 0.74 2.12 Total 5.23 16.69 21.91 3.2 LOSS OF STANDING CROPS/TREES Loss of standing crops and trees are presented in Table 3.3 and Table 3.4. Table 3.3 Project Affected Crops and Swamp Affected Area No. Category Unit (ha) 1 Cassava ha 19.20 2 Coco Yam ha 0.11 3 Corn (Maize) ha 2.45 4 Melon ha 2.07 5 Pineapples Unit 545 6 Vegetables ha 0.58 7 Yam ha 0.26 Table 3.4 Project Affected Trees (Unit: Unit) Category Economic Trees Total Mature Immature Seedling Hard Wood 5,342 7,907 13,249 Soft Wood 1,026 1,484 2,510 Palm Tree 10,679 12,264 206 23,149 Stakes 2,154 586 2,740 Mango Tree 130 36 166 Medicine Tree 2,653 460 3,113 Pear Tree 290 21 311 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 20 Category Economic Trees Total Mature Immature Seedling Banana (Plantain) 43 5 48 Total 22,317 22,763 206 45,286 3.3 AFFECTED SHRINES In total 10 personal shrines, 20 family shrines and 87 village shrines will be affected by the pipeline installation (see Figure 3.2). Figure 3.2 Project Affected Shrines 3.4 LOSS OF OTHER ASSETS Other assets affected by the ROW include 70m2 fish ponds, 12 fishing traps, 93 m2 temporary structure, two boreholes and one well. 3.5 CATEGORIES OF PROJECT AFFECTED PEOPLE The socio-economic surveys conducted for the preparation of this RAP established that there are five categories of affected people who will be exposed to losses as a consequence of the Project’s land occupation, and who will thus be eligible for some form of compensation and/or other assistance. These categories are as follows: 1. Agricultural land occupier: customary right of land occupancy, 2. Crop / Tree Cultivator, ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 21 3. Owner of Structures / Assets 4. Individuals Dependent on Communally Held Lands Resources / Assets Note: In many cases, individuals may fall into more than one category. For instance an individual may: (i) hold a customary right of occupancy over agricultural land; and (ii) cultivate crops on that land. Accordingly, they would fall into two categories: (i) agricultural land occupier: customary right of land occupancy; and (ii) crop / tree cultivator. 3.5.1 Agricultural Land Occupier: Customary Right of Land Occupancy Members of this group are formally recognised as holding a customary right of occupancy over agricultural land within the ROW. The land that this group occupies is largely arable, and is used to cultivate a range of crops for both subsistence use and for sale. 3.5.2 Crop / Tree Cultivator Members of this group cultivate crops / trees on the ROW, including yam, cassava, plantain, maize, coco yams etc. This group may either be farmers who work on the land to which they hold a customary right of occupancy, or they may be sharecroppers who work land over which another individual owns the customary right of occupancy. These sharecroppers typically work the land according to an agreement under which they are able to retain a certain percentage of the crops harvested. 3.5.3 Owner of Structures / Assets Members of this group either occupy, or depend on an area of the land within the ROW, and in turn own structures / assets there that will need to be relocated. Such structures include shrines, chicken coops, etc. 3.5.4 Individuals Dependent on Communally Held Lands Resources / Assets Sixteen villages claimed that land/water/assets were community owned. These include 5.23 ha communal cultivated land, and 0.13 ha communal swamps and 87 village shrines. Accordingly, the entire affected communities are eligible for compensation entitlements. 3.5.5 Vulnerable Groups Vulnerable groups are defined as those who, by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by land acquisition than others, and who may be limited in their ability to claim or take advantage of assistance provided by eth project and related development benefits. The socio-economic surveys identified the following vulnerable groups: ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 22  Women headed households without one or more family members of working age in the household. Situated within a patriarchal society, women tend to be prevented from participating in local decision-making. They also tend to lack access to independent means of income generation. The household survey identified 12 households within the group.  Households headed by disabled and/or elderly people (>60 years(1) ) without one or more family members of working age in the household. Those with physical or mental disability and /or old age are typically unable to access an independent means of income generation. 13 households were identified in this group.  Households living in poverty. Those with a combined household income of less than 4,800 naira per month(2). 7 households were identified. In total, 32 vulnerable households were identified, representing some 4.4% of the total number of households affected by the Project. The vulnerable household is listed in Annex A. (1) This is the official retirement age in Nigeria. (2) This equates to the official poverty line in Nigeria. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 23 4 LEGAL AND ADMINISTRATIVE FRAMEWORK 4.1 INTRODUCTION This section provides a review of two Nigerian laws most relevant to land acquisition of the gas pipeline, namely the Land Use Act (1978) and the Oil Pipeline Act (1990), as well as a comparison between the Nigerian legal regime for land acquisition and IFC PS 5. 4.2 LAND USE ACT, 1978 4.2.1 Background Land use and ownership in Nigeria is governed by the Land Use Act of 1978. Prior to the promulgation of the Act, there was a multiplicity of land tenure systems in Nigeria with the Maliki Law system dominant in pre-colonial northern Nigeria until 1910 when an Ordinance conferred on the colonial governor control of all lands in that part of the country. In the remaining areas of Nigeria, land was owned by extended families, lineages or whole communities with the head of the families or communities having custodial rights over land (1). Under the differing land tenure systems existing before the Land Use Act, particularly in southern Nigeria, individuals typically only had a right to use communal or family land, either for a definite or an indefinite period. Such usufruct rights could not translate into personal ownership of the land (2). The land tenure system in existence before the Land Use Act encouraged multiple sales of the same parcel of land to different people because of the absence of a titling system or public record of extant land holdings. The land tenure system in existence before the Land Use Act also made it difficult for non indigenes and governments to acquire land for public infrastructure projects, due to the customary reluctance of communities to cede ownership of land to non natives. With the promulgation of the Land Use Act, the ultimate title of all lands situated in Nigeria now vests in the Governor of each State, in trust and for the common benefit of all Nigerians. Ultimately, the Land Use Act was promulgated to support fair and equitable access to land, and to encourage its productive use through: (i) a system of registration of titles; (ii) placing a cap on tenure of rights over land; (iii) the issuance of paper titles (Certificates of Occupancy); and (iv) the institution of a regime of rents, fees and taxes (3). (1) “Land Reforms in Nigeria: Progress, Problems & Prospects” A paper presented by Professor Ak in Mabogunje, Chairman Presidential Technical Committee for Land Reforms set up in April 2009. (2) So held the Nigerian Supreme Court in the case of Ogboni V. Ojah (2003) 2NLLC pp 713-4. (3) US AID. Nigeria Country Profile. 17 November 2010. Available at: http://usaidlandtenure.net/usaidltprproducts/country-profiles/nigeria [Accessed 25.08.11]. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 24 4.2.2 Land Ownership and Use The Land Use Act came into force on 29 March 1978 and replaced all pre- existing land tenure systems throughout Nigeria. The Act essentially does three things:  It places land into two categories: urban land and non-urban land, as designated by the Governor of a state wherein the land lies.  It redefines title in land to be a right to occupy or use the land rather than to own it; namely: o a statutory right or a deemed statutory right of occupancy for land in urban areas; and o a customary right or a deemed customary right of occupancy for land in non-urban areas.  It empowers the Governor of a state to revoke rights of occupancy. It should be noted however that the effect of the Act was merely to put the control and management of lands in to the hands of Government. This is because the vesting of the ultimate title in the Governor in reality does not completely obliterate the underlying interests in, and “native title” to, the land, which still depends to a significant extent on customary practices (1). Therefore, although section 1 of the Act vests legal title of all lands in the territory of a state in the Governor, and section 5(1)(a) and 6(1)(a) empower the Governor / Local Councils to issue statutory or customary rights of occupancy, rights of land owning families and communities existing before the promulgation of the Act were not abrogated. Section 34(2) and (5)(a) and section 36(2) and (4) preserved these rights, albeit under a new nomenclature, ie deemed statutory or deemed customary rights of occupancy. Therefore, persons, families and communities owning or occupying land prior to the Act automatically enjoy the status of deemed statutory or deemed customary occupancy rights holders, and may or may not apply for the issuance of a paper Certificate of Occupancy, or otherwise “perfect” / register their land holding (see section 34 (3) and 36(2)). In the purposes of this RAP, for simplicity, the occupancy right held by the community and those receiving title from the community will be termed a “customary right of occupancy”. 4.2.3 Compensation Provisions When rights of occupancy are subject to revocation by “overriding public interest”, holders of rights of occupancy are, under the Land Use Act, entitled to compensation for the value at the date of revocation of their unexhausted improvements (section 29). In other words, they are not entitled to compensation for the land itself, but rather only to compensation for (1) As acknowledged by the Nigerian Supreme Court in the case of Ogunola vs. Eiyekolo (1990) 4 N.W.L.R. (Pt.146) 632 at 632 per Karibi – Whyte, JSC. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 25 improvements made to the land, such as standing crops, buildings, fences etc. In addition, depreciation is taken into account in assessing the value of these improvements. For individually-held land, the Act states that compensation should be paid to the individual who holds the occupancy right. For communally-held community land, where occupancy rights are not claimed by any one individual, the Act states that the recipient of the compensation may be: (a) the community; (b) the chief or leader of the community, to be disposed of by him for the benefit of the community in accordance with the applicable customary law; or (c) a community fund, to then be utilised for the benefit of the community (section 29(3)). 4.3 OIL PIPELINE ACT (1990) The Oil Pipeline Act (1990) allows for licences to be granted for the establishment and maintenance of pipelines incidental and supplementary to oilfields and for purposes ancillary to such pipelines. 4.3.1 Permit to Survey Section 4 (1) stipulates an application should be made to the Minister of Petroleum Resources for the grant of a permit to survey the route for a gas pipeline. Septa obtained the survey permit in January 2012 and completed the survey in March 2011. 4.3.2 Oil Pipeline License Following the survey, the project developer can apply to the Ministry of Petroleum Resources for the Oil Pipeline License and such application should be publicised in the State Gazette of each State, newspapers, posters and/or other means along the proposed pipeline ROW. A licence shall entitle the project developer to acquire or use temporarily a ROW of a width not exceeding two hundred feet in order to construct, maintain and operate an oil pipeline and ancillary installations. Septa Energy completed the application for the oil pipeline license in line with the Oil Pipeline Act and obtained the corresponding License on August 1st 2011 (see Table 4.1 and Annex B). Table 4.1 Pipeline Land Right Government Name of Document Date of Issue Permit No. Department Two year survey permit 12 January 2011 Department of Permit to Survey Petroleum No. 2714 Resources, Lagos Application for an Oil Pipeline February, 2011 Minister of Government Notice License Petroleum No 464 Resources No. 63, Volume 95, 23 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 26 Government Name of Document Date of Issue Permit No. Department Septa Energy Nigeria Limited March 2011 Ministry of Akwa Ibom State Application for an Oil Pipeline Petroleum Notice No 56, No. 9, License Resources Volume 25, 3 Submission of Preliminary Route 14 April 2011 Septa Survey and Request for Estimate for Acquisition of Pipeline ROW for Uquo-Usun (Near Oron) Public Hearing for the 11 May 2011 Ministry of Lands Application of Pipeline Licence and Town Planning, Akwa Ibom State Oil Pipeline Licence 1 August 2011 Minister of Oil Pipeline Licence Petroleum No. 1429 Resources 4.3.3 Compensation The Oil Pipeline Act requires the holder of a pipeline licence to pay compensation to those affected. In summary:  Compensation is payable for damage to any buildings, crops or plantations.  Compensation is payable for the loss in value of land.  No compensation is payable in respect of unoccupied land. The loss in value of the land is equal to the difference between the value of the land at the date immediately before the licence is granted and the residual value of the same land at the date of the grant of the licence, if such residual value is a lesser sum. The provisions of the Land Use Act shall be applied in determining compensation as far as they are applicable and not in conflict with any of the requirements of the Oil Pipeline Act, as if the land were acquired by the President for a public purpose. Where the land affected is held by a local community, the compensation may be paid to any chief, headman or member of that community on behalf of such community, or paid in accordance with a scheme of distribution approved by the court, or paid into a fund to be administered by a person approved by the court on trust for application to the general, social or educational benefit and advancement of that community or any section thereof. 4.4 IFC PERFORMANCE STANDARD 5 In addition to the need to adhere to Nigerian legislative requirements, the Project will also seek to align with IFC PS 5: Land Acquisition and Involuntary Resettlement (2012). The IFC PS5 provides a comprehensive framework for resettlement planning and implementation, and is generally recognised as an international benchmark for responsible land acquisition by the private sector. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 27 4.4.1 Key Elements of IFC PS5 Full Replacement Cost The principle of full replacement cost should be adhered to in assessing losses and providing appropriate compensation measures. This principle can be defined as the market value of the land / assets plus transaction costs. When employing this method of valuation, depreciation should not be taken into account. Transitional Costs In addition to providing compensation for loss of land and other assets, the costs associated with the transition from one livelihood activity to another, or any other income loss associated with the displacement process, should be compensated. The provision of assistance with the relocation process itself, or a cash amount to cover the costs of the physical move, should also be allocated where necessary. Eligibility A broad approach to eligibility should be adopted. Those who have formal legal rights to affected land or other assets and those who have customary and traditional rights to the use of affected land or other assets should be eligible for compensation, livelihood restoration and other assistance. In other words, the absence of legal title to land or other assets is not, in itself, a bar to compensation. In addition, encroachers, “squatters” or people who are residing on or otherwise occupying land in violation of local or national laws are also deemed as an eligible group in the context of compensation provision(1) . While people who belong to this group should not be entitled to compensation for loss of land, they should be provided with compensation for any improvements made to the land (such as structures, crops and trees), as well as to other assistance. In-Kind Compensation In-kind compensation (together with security of tenure for replacement houses and land) should be provided in lieu of cash compensation where feasible, and particularly for those who may lack experience with using cash sustainably and productively. In-kind provisions should also be prioritised in the context of replacing affected common property resources. Livelihood Restoration (LR) Means of income earning capacity, productivity levels and associated livelihoods and standards of living should be at least restored to, and preferably improved beyond, pre-Project levels. Indeed, the land acquisition (1) IFC PS5 specifically states that “while some people do not have rights over the land they occupy, this Performance Standard requires that non-land assets be retained, replaced, or compensated for; relocation take place with security of tenure; and lost livelihoods be restored.” (Article No. 5, Footnote 8) ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 28 process should be managed as a development initiative, such that affected communities are ultimately better off after Project implementation. Disclosure, Consultation, Informed Participation Land acquisition and compensation activities should be implemented with appropriate disclosure of information, consultation and the informed participation of those affected. Vulnerable Groups Those populations identified as vulnerable should be provided with extra assistance to ensure that their vulnerability is not exacerbated. 4.4.2 Gaps between Nigerian Practice and International Standards The main gaps between the local legal requirements and IFC PS5 regarding land acquisition and associated activities can be summarised as follows:  Under Nigerian law, there is no requirement for the payment of compensation for land per se by the acquiring authority because the rights being revoked are occupancy rather than ownership rights.  Under Nigerian law, there is no requirement for public participation or consultation during the land acquisition process.  Under Nigerian law, compensation is paid only for land improvements and depreciation is taken into account, i.e. not provided on the basis of full replacement cost.  In Nigeria, compensation does not have to be paid prior to the removal of assets.  Under Nigerian law, there is no requirement for livelihood restoration / improvement. There is also no requirement to manage land acquisition as a development initiative.  In Nigeria, there is no requirement to compensate for transition costs suffered as a result of the land acquisition process (eg temporary loss of use of resources, title charges, re-connection costs, legal costs or transactional costs, etc).  Under local law, there is no requirement for the provision of supplementary assistance for vulnerable individuals and groups. Table 4.2 provides further details of the gaps between Nigerian laws, IFC PS 5, together with a description of the Project’s strategies to fill such gaps. Note: Considering that little guidance exists on the detail of how local legislation should be implemented and that there is significant variation in the way that local legislation has been implemented in the past, the gap analysis draws only from what is known to have been carried out in this particular Project context. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 29 Table 4.2 Gap Analysis: IFC PS 5 and Local Requirements Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap Project Design Feasible alternative project designs should be Local legislation does not mention the need to Gap: Local law does not require the Project to avoid or considered to avoid or minimize physical avoid / minimise displacement. It requires the minimise displacement by seeking alternative Project and/or economic displacement, while revocation of rights of occupancy if the land is designs. balancing environmental, social, and financial required for overriding public interest. costs and benefits, paying particular attention Project Position: Project has sought to minimise to impacts on the poor and vulnerable. displacement and documented this in Section 1.5 of this RAP. Livelihood If economical displacement is involved only, a Local legislation does not require the Gap: Local law does not require the Project to Restoration Livelihood Restoration Plan should be development of a Livelihood Restoration Plan. prepare a Livelihood Restoration Plan. Plan prepared to address to compensate affected persons and/or communities and offer other Project Position: The Project has prepared a RAP that assistance that meets the objectives of this addresses both Nigerian standards and international Performance Standard. practice. Census and Where involuntary resettlement is A survey is required to record the position and Gap: The requirement for a census and asset Asset unavoidable, a census will be carried out to dimensions of the land parcel to be acquired, the inventory under international standards is more Inventory collect appropriate socio -economic baseline spatial relation to properties in the area, and a list comprehensive than the requirements under local law. data to identify the persons who will be of communities on the property. The level of detail of the information required under displaced by the project, determine who will international standards is greater than that required be eligible for compensation and assistance, The enumeration process is asset driven and not under local law. and discourage ineligible persons, such as household driven. There is no particular format opportunistic settlers, from claiming benefits. which is currently used by the Land Department. Project Position: A comprehensive census of affected The census will establish the status of the The process mostly comprises of generic persons, socio-economic baseline survey and asset displaced persons. questions that are administered orally, and on the inventory has been prepared for the Project. basis of factual information and observations, the entitlement for the families is suggested. Consultation Ensure resettlement activities are A notice of acquisition is usually prepared by the Gap: Local law does not require the Project to and implemented with appropriate disclosure of Ministry of Lands, in conjunction with the survey undertake formal consultation with affected Participation information, consultation, and the informed description. The notice is then published in two communities, or ensure their participation in the land participation of those affected. newspapers (one national and the other local) and acquisition process. the government gazette. This disclosure is not however supplemented by any proactive Project Position: Consultation with affected consultation or other participatory activities. communities has been undertaken regarding key aspects of the land acquisition process. Consultation ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 30 Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap for the RAP included scoping, ROW pre-mapping, community notification letters, community town-hall meetings, focus group discussion, socio-economic surveys, and survey result disclosure processes. Key aspects of the RAP will be disclosed in an appropriate manner to affected communities. Vulnerable Particular attention will be paid to the needs Local law does not specifically address the Gap: Local law does not require the Project to pay Groups of the poor and the vulnerable. concerns of vulnerable groups in relation to land particular attention to the needs of vulnerable groups. acquisition activities. Project Position: Vulnerable groups have been identified and will be registered for future livelihood restoration monitoring. Specific measures for compensation and livelihood assistance have been developed, and specific funds will be allocated for this purpose. Compensation Compensation for loss of assets at full The compensation required under local legislation Gap: The principle of full replacement cost is not – Full replacement cost and other assistance. covers only “unexhausted improvements” made employed under local legislation and there is less of Replacement No compensation or assistance are required to the affected land in instances where occupancy an emphasis on the need for in-kind replacement. Cost, In-Kind for those who encroach on the project area rights are subject to removal. Compensation takes Security of tenure is also not a local legislative Provisions after the cut-off date for eligibility, provided depreciation into account and market rates are not requirement. and Security the cut-off date has been clearly established employed as a basis for valuation. of Tenure and made public. Project Position: The Project has adopted the Local legislation, while permitting in-kind principle of full replacement cost as the basis for replacements, remains largely focused on cash- compensation for loss of assts. based compensation. Eligibility and Displaced persons may be classified as All land rights constitute occupancy rights rather Gap: Eligibility criteria under local legislation are Entitlements persons (i) who have formal legal rights to the than ownership rights and accordingly eligibility narrower than that under international standards. In land or assets they occupy or use; (ii) who do for compensation for loss of land is non-existent. particular, while statutory and customary occupancy not have formal legal rights to land or assets, Anyone possessing a statutory or customary right rights are recognised, compensation is not payable for but have a claim to land that is recognized or of occupancy to affected land is only entitled to occupancy of the land. Encroachers are not recognised recognizable under national law; or (iii) who compensation for “unexhausted improvements” under local legislation, whereas under international have no recognizable legal right or claim to made to that land. Encroachers are not standards such people are eligible for compensation. the land or assets they occupy or use. recognised as an eligible group, and are thus not entitled to any compensation provisions. Project Position: The Project will take a broad and ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 31 Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap comprehensive approach to eligibility, treating occupancy rights as ownership rights and compensating accordingly. Other groups such as encroachers are deemed an eligible group for the purposes of compensation by the Project. Cut-Off Date In the absence of host government Though a cut-off date is not written into local Gap: Under local legislation, there is no requirement procedures, a cut -off date for eligibility legislation, discussions with the Ministry of Lands to set a cut-off date. Common practice is for this to be should be established. suggest that there is a six week notice period set at the end of the survey and valuation process. given prior to land being acquired by the Project. This is not however a cut-off date in the formal Project Position: The end of the survey and valuation sense. process was established as the cut-off date for the Project. Timing Possession of acquired land and related assets Local legislation suggests that compensation Gap: While there is a suggestion in local legislation should happen only after compensation has should be paid within a reasonable time period. that compensation should be provided in a timely been made available and, where applicable, manner, there is no clarity as to what a timely manner resettlement sites and moving allowances actually means. have been provided to the displaced persons in addition to compensation. Project Position: The Project will ensure that compensation is made in full prior to land occupation and removal of assets. Grievance A grievance mechanism will be implemented Local legislation has no requirements to establish Project Position: Local law does not require a Mechanism / consistent as early as possible in the project a grievance mechanism. Disputes concerning grievance mechanism to be established so that issues Redress development phase, to receive and address compensation shall be referred to the appropriate regarding the Project or land acquisition can be specific concerns about compensation and Land Allocation Advisory Committee. Failing reported, recorded and addressed. relocation raised by displaced persons or this, recourse to court is possible. members of host communities in a timely Project Position: The Project will implement a fashion, including a recourse mechanism grievance mechanism that will be accessible to PAPs. designed to resolve disputes in an impartial manner. Internal Monitoring procedures will be established to Local legislation does not specify any monitoring Gap: Local law does not require monitoring and monitoring monitor and evaluate the implementation of a and evaluation requirements. evaluation of livelihood restoration activities. Livelihood Restoration Plan and take corrective action as necessary. Project Position: The Project will establish systems for monitoring and evaluation as proposed in this RAP. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 32 Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap Completion The completion audit should be undertaken Local legislation does not require a completion Gap: Local law does not require a completion audit. audit once all mitigation measures have been audit. substantially completed and once displaced Project Position: The Project will undertake a persons are deemed to have been provided completion audit as proposed in this RAP. adequate opportunity and assistance to sustainably restore their livelihoods. The completion audit will be undertaken by competent resettlement professionals once the agreed monitoring period is concluded. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 33 4.5 PROJECT LAND ACQUISITION STRATEGIES The following underlying principles will guide planning and implementation for all Project land acquisition and associated activities: 1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline Act (1990) and all other applicable Nigerian laws and regulations. 2. The Project will compensate affected persons for loss of assets at full replacement cost. 3. The Project will treat occupancy rights as ownership rights for the purposes of compensation and will compensate accordingly. The Project will compensate the replacement cost for permanently acquired land. 4. Encroachers will be eligible for compensation of affected assets. 5. The Project will pay compensation in full prior to the occupation of land or removal of assets. 6. The Project will implement livelihood restoration measures in order to assist PAPs to restore incomes to pre-displacement levels. 7. Vulnerable groups will be identified, registered and their livelihood monitored. Specific measures for compensation and livelihood assistance will be developed and funded by the Project. 8. A grievance procedure will be accessible to all those affected by the project. 9. The Project will establish systems for monitoring and evaluation (including a completion audit) as proposed in this RAP. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 34 5 INSTITUTIONAL ARRANGEMENTS 5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD RESTORATION PROCESS Figure 5.1 represents a schematic flowchart of the project land acquisition planning and implementation procedures. Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process C O M M U N I T Y G Scoping Land Acquisition Impacts R I Community Pre-entry and Notification E V Census, Land/Asset Surveys A N C C O N S U L T A T I O N Cut-off Date E Grievance redress procedure Livelihood Restoration Plan Septa R E Compensation Entitlement D PAPs Livelihood Restoration R Costs and Budget E Land Acquisition Committee S A N D S Supplementary Survey of Unregistered Assets LEGEND P P A R T I C I P A T I O N R Septa Orientation of PAPs O Land Acquisition Committee C PAPs Compensation Agreement and Payment E LRP Consultant D Livelihood Restoration Measures U Completed Activity R Ongoing Activity Monitoring Project Project and Evaluation Monitoring and Evaluation E To be conducted 5.2 ORGANIZATION STRUCTURE A Land Acquisition Committee will be formed to manage the compensation and livelihood restoration (LR) processes. The Livelihood Restoration Manager will head the Land Acquisition Committee. It is the responsibility of the Land Acquisition Committee to implement the processes and commitments detailed in this RAP, including the Grievance Procedure. The Land Acquisition Committee will monitor the implementation of all activities to ensure that this RAP is being implemented and that the outcomes are consistent with the objectives of the RAP. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 35 Figure 5.2 presents organisation structure of the Land Acquisition Committee. Figure 5.2 Organisation Structure of Land Acquisition Committee Land Acquisition Committee Septa Team Government Team NGO Board of Directors/ CEO Ministry of Land Livelihood Restoration Manager Livelihood Restoration Officer Legal Manager Community Liaison Officers Financial Member The Land Acquisition Committee will meet once a week for the first three months of the land acquisition process. After this period, it is advised that meetings are held on a monthly basis for an additional three months, and then quarterly depending on the effectiveness of implementation and the scale of outstanding land acquisition issues. A record of meetings and minutes should be prepared, held and distributed by the Project RAP Manager. Detailed Roles and responsibilities of each party are presented in Table 5.1. Table 5.1 Roles and Responsibilities of Land Acquisition Committee Organisation No. Roles and Responsibilities Name 1 Septa Board of Overall control of the implementation of RAP and grievance redress Directors/CEO procedure ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 36 Organisation No. Roles and Responsibilities Name 2 Land  coordinating and overseeing the land acquisition and compensation Acquisition process and all those participating in it; Committee  interfacing with the Project in relation to engineering options, the timing /phasing of the land acquisition and compensation process  facilitating all consultation and engagement activities with affected communities;  approving compensation entitlements with affected communities prior to disbursement;  budget control and formulating and operating compensation disbursement mechanisms;  approval of dispute resolution brought to the Committee through the Grievance Procedure;  approval of support and assistance to vulnerable groups;  facilitating livelihood restoration programmes to ensure that local needs are met;  guiding the monitoring and evaluation process; and  reporting to the Septa Management Team. 3 Septa  overseeing and coordinating all land acquisition and livelihood Livelihood restoration (LR) activities; Restoration  supervising all stakeholders (including Project staff, government Manager officials, contractors etc) who contribute to the process;  reporting directly to the Project Management Team;  chairing the Land Acquisition Committee;  evaluating Land Acquisition Committee performance and providing constructive feedback. 4 Septa  coordinating and overseeing the project in the field; Livelihood  ensuring information sharing between the land acquisition team Restoration and Project Management Team, as well as wider information Officer dissemination; and  acting as the “face” of the land acquisition and LR processes, being perceived to be accessible and promoting trust and confidence as the “go-to” person for any land acquisition or LR-related issues and concerns. 5 Septa Legal  Providing legal advice, producing all agreements and monitoring Manager LR processes. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 37 Organisation No. Roles and Responsibilities Name 6 Septa Four Septa Community Liaison Officers will be employed by the Project Community and will be responsible for direct engagements with the community Liaison regarding land acquisition and compensation, dealing with day-to-day Officers community issues and for facilitating the grievance redress procedure in each LGA. Key responsibilities include:  recording grievances, both written and oral, from the affected people, categorising and prioritising them, and for resolving these within an agreed timeframe;  reporting to the Land Acquisition Committee at each meeting on: i) the number of grievances received since the previous Land Acquisition Committee Meeting; ii) the number resolved since the previous Land Acquisition Committee Meeting; and iii) The number of grievances unresolved after 14 days that require intervention by the Land Acquisition Committee .  informing the RAP Manager of any serious issues (eg security issues, known or suspected corruption); and  maintaining contact with the aggrieved parties about developments regarding their grievances and the decisions of the Land Acquisition Committee. 7 Septa Financial  reviewing RAP cost and budget; Representative  signing off RAP payment for compensation and livelihood restoration;  supervising project compensation disbursement compliance; and  reviewing and signing off grievance redress measures. 8 Government  reviewing and commenting on the Project RAP; representatives  signing off each household compensation matrix;  supervising project compensation; and  supporting project livelihood restoration measures, 9 Non- The NGO will be selected by Septa and will act as an impartial third governmental party to facilitate the land acquisition and compensation process. Key organisation responsibilities include: (NGO)  providing impartiality to the land acquisition and compensation processes of disclosure, signature of compensation agreements and compensation disbursement.  supporting the development of project livelihood restoration measures based on the knowledge of local socioeconomic conditions;  dispute resolution through the Grievance Procedures; and  supporting internal and/or monitoring and evaluation. 5.3 RAP HANDOVER Handover of the RAP will be crucial to the effective delivery of the land acquisition and livelihood restoration process. RAP Handover Training will need to be provided to all members of the Land Acquisition Committee in order to ensure that they fully understand the measures committed to in the RAP, as well as the institutional setup and roles and responsibilities of all of the stakeholders involved in the process. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 38 5.4 GRIEVANCE MECHANISM 5.4.1 Potential Grievances and Disputes The grievance redress procedure provides a mechanism to mediate conflict and cut down on lengthy litigation, which often causes delays in infrastructure projects. There is the possibility that grievances and disputes may arise during land acquisition and compensation, resulting from the following:  Disputes or errors made during surveying, census and valuation of assets;  Disputes or errors related to identification of land boundaries;  Disputes or errors related to land ownership and asset valuation;  Family issues resulting in ownership or share disputes;  Disputed ownership of assets by different individuals;  Delays in disbursement of compensation or assistance; and  Community complaints or claims for compensation in relation to pipeline construction. 5.4.2 Procedure for Grievance Redress The Grievance Procedure is shown in Figure 5.3. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 39 Figure 5.3 Septa Grievance Redress Procedure Grievances Identification CLO 1 day Lodgement of Grievances CLO 1 day Acknowledging Receipt of Grievance CLO 1 day CLO Septa Energy Development of Response Land Acquisition 7 days Committee Complaint Communication with Complaint CLO 1 day Closure of Yes Is the complaint satisfied Grievance with the solution? 14 days 3 days No Yes Redress through Joint Decision with the Complaint Septa Energy 7 days No Land Acquisition Yes Redress through Government Committee Mediation CLO 7 days No Complaint Yes Redress through Legal Arbitration Village Head ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 40 6 PARTICIPATION AND CONSULTAITON 6.1 INTRODUCTION 6.1.1 Objectives The objectives of consultation with affected communities are to:  Inform affected persons about the project and how it will affect them (1).  Identify the interests, concerns and needs of affected persons.  Seek input from affected persons in the planning process (e.g. regarding preferred compensation options and livelihood restoration).  Provide feedback to affected persons on how their concerns and needs have been addressed in the land acquisition and livelihood restoration (LR) planning process. 6.1.2 Stakeholder Identification The main stakeholders in the land acquisition process include:  Village organisations, including village chief, village council, youth group, and women’s group.  Project affected communities and persons in the following categories:  Those to be affected by permanent land acquisition within the 15m pipeline corridor; and  Those to be affected by temporary land use within the 10m corridor. 6.1.3 Methodology Consultation with PAPs is conducted via the following mechanisms:  Step 1: Community pre-entry notification;  Step 2: Town hall meetings and focus group discussions at the village level;  Step 3: Consultation during RAP surveys;  Step 4: RAP disclosure;  Step 5: Disclosure of survey data;  Step 6: Orientation of PAPs;  Step 7: Compensation agreement and disbursement; and  Step 8: Grievance redress. Major activities of each step are described in Table 6.1. (1) IFC’s Performance Standard 5 requires that individuals and communities directly affected by land acquisition and resettleme nt should have the opportunity to participate in the negotiation of compensation packages and consultations regarding eligibility requirements, resettlement assistance, suitability of resettlement sites and the timing of resettlement activities. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 41 Table 6.1 Participation and Consultation Methodology Step # Name Activity Step 1 Pre-entry Notification  A Project Briefing Letter is written to the Village Chief of affected villages and copied to the Village Council, Youth Union, and Women Union. Four letters in total for each village. A date for the proposed village town-hall meeting will be specified in this letter (normally within seven days).  A Project Briefing Letter is written to LGA Officers, notifying the LGA of the arrangements for RAP surveys. Step 2 Village Town-hall  Introduce the project to all village members; Meeting  Explain the need for and extent of temporary and permanent land occupation by the Project. Coloured land acquisition diagrams were used to facilitate the process.  Brief PAPs on the purpose of RAP field surveys;  Request support for clearance of access road and demarcation of village boundaries;  Agree on a date to carry out the detailed RAP surveys (normally within three days); and  Conduct village mapping, profiling and consultation through structured interviews, focus group discussions and site reconnaissance investigations. Step 3 RAP Survey  Conduct face to face household socio-economic surveys;  Conduct land survey, census and asset inventory; and  Collect interests, concerns and suggestions of affected persons. Step 4 RAP Disclosure  Publicize draft RAP to the affected community; and  Collect interests, concerns and suggestions from affected persons. Step 5 Supplementary  Conduct verification survey if questions on the survey Survey of results are raised including claims for unregistered assets Unregistered Assets or losses. Step 6 Orientation of PAPs  Provide financial advice to PAPs, including information on risks (theft, fraud), options for securing funds (e.g. use of bank accounts), sensible expenditure (purchase of seeds, fertilizers, agrochemicals) and opportunities for investment (real estate, trade, agriculture). Step 7 Compensation  Sign compensation agreement with affected communities agreement and and households payment  Pay compensation to the affected communities and households based on compensation; and  Conduct livelihood restoration measures as agreed with the communities. Step 8 Grievance Redressing  Collect, record, administrate and redress grievances raised from the affected communities throughout the entire land acquisition and LR process. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 42 6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE Consultation with the affected communities that were carried out during the RAP process are summarised in Table 6.2. Table 6.2 Consultation Activity Conducted to Date Major Concerns / Suggestions Date Major Task Raised by the Affected Community 21-25 February 2012 Scoping to identify project affected  Limited project information has community and confirm the necessity of been disseminated to the affected physical displacement. community. 15-18 March 2012 RAP Pilot Survey to test survey  Formal village pre-entry methodology and materials in the target processes are required prior to village. the RAP survey.  There has been no government process of publicising survey results to affected community. 27 March – 4 April Right of Way (ROW) mapping and mark  Some villages have boundary 2012; up to demarcate pipeline ROW and confirm disputes. Caution should be 10-14 April 2012 the extent of the affected community. taken during future consultation and surveys. 10-14 April 2012 Distribution of village pre-entry letters.  Agree on village town-hall meeting date. 16-21 April 2012 Conduct village town-hall meetings, village  Some villages have internal mapping and focus group discussions. disputes on land/asset ownership, boundaries, and have asked for signature of MoU. 23 April – 21 May Conduct RAP survey including household  Some villages have retained their 2012 socio-economic survey, land survey, census own evaluators to supervise the and asset inventory. survey.  Affected communities expressed interest in knowing the exact compensation entitlement and rates. 12-27 June 2012  Disclosure of RAP, project land  State government claimed to acquisition and livelihood restoration have land ownership on the strategies were disclosed to PAPs Forest Reserve. through town hall meetings, including policies, entitlement, compensation rates and implementation plan. Figure 6.1 presents some photos from the consultation process. Sampled attendant lists of community meetings are presented in Annex E. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 43 Figure 6.1 Community Consultation and Participation, April-May 2012 Consultation Meeting in Eyobioasang Village Consultation Meeting in Osu – Edesi Village Outside of a Consultation Meeting in Udung Explanation of ROW Land Take in Adaha Ofriyo Ikpang Village Village Town Hall Meeting Idung Asua Village Town Hall Meeting Town Hall Meeting in Eyobioasang – Oruko Village Disclosure Town Hall Meeting in Esit Eket LGA Disclosure Town Hall Meeting in Esit Eket LGA ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 44 6.2.1 Concerns of PAPs Concerns collected during the consultation process are grouped into three categories:  Concerns over compensation and payment disbursement;  Expectations for livelihood restoration measures; and  Environmental, health and safety (EHS) concerns over project construction/operational activities. Concerns over Compensation and Payment Disbursement  PAPs want to know the exact compensation entitlements and rates, and when the payments will be made.  Compensation for shrines should include the ceremonies for the appeasement of deities.  Women in some communities claimed that they were not allowed to enter the ROW to identify their crops during the survey.  Affected residents expressed distrust with village leadership and requested Septa to engage them directly during each phase of the land acquisition and compensation process. In particular they requested that compensation be disbursed to affected owners directly.  PAPs feared that Septa might use more land beyond the specified 25m ROW corridor. They complained that another operator did so when acquiring land at Edo, and did not pay community members for the additional land take.  PAPs feared that Septa may use land beyond the period of 1.5 years for which PAPs are eligible for compensation. They requested that the entire ROW be acquired on a permanent basis (including the 10m ROW that will be compensated on a temporary basis).  Some PAPs expressed a preference to change permanent land acquisition to temporary land use hence can obtain compensation on an annual basis.  Some PAPs claimed that there were mistakes made during surveying, e.g. same survey control number was given to two PAPs.  The Forestry Department in the Akwa Ibom State Ministry of Environment claimed that the Forest Reserve belonging to the State Government (stretching from Edo to Mbak Uyo) was wrongly assessed as a community asset and claimed that compensation should be paid to the Government and not to claimants/communities. Expectations on Livelihood Restoration  PAPs expected some local employment of labour during pipeline construction.  The youth expressed that they wanted technical training in pipeline welding to enable them acquire employable skills.  Fishing communities feared that Septa activities would damage their livelihood activities by silting fishing sites, hence they want Septa to control wastewater discharge to minimise siltation and provide fishing communities with alternative livelihood options. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 45  Women wanted Septa to engage them directly on issues related to their own welfare, not through the men. They required livelihood support on vocational training for young girls, adult education, and palm processing mills.  PAPs were concerned that their children would not benefit from the development after the land acquisition, citing an example of abandonment of a coal mine that impoverished the local community that depended on it.  PAPs suggested that CLOs should be recruited from local affected communities that could represent the interest of local people. EHS Concerns over Project Construction and Operational Activities  PAPs raised concerns on how Septa intended to dispose the waste, tree, stumps and silt generated during the pipeline processing.  Udung Ikpang and Idung Assua communities requested Septa to install a borehole to ease water related challenges.  PAPs were concerned about long term plan for maintenance of the pipeline in order to avoid leakages and fire.  The farmers wanted to know whether they are safe to continue with their bush burning method before planting. Community concerns directly related to the land acquisition and livelihood restoration process are incorporated into the project compensation and livelihood planning and those related to EHS issues will be passed to Septa as community grievances. 6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING Through the RAP consultation process, the RAP Project Team was able to refine the land acquisition planning details to address the concerns of local residents, including:  Refine the project information disclosure and consultation process by incorporation of an additional process of village pre-entry sensitization(1) and using printed ROW land acquisition diagram to help affected communities understand the scope of project land occupation and to organise resources to assist the subsequent surveys.  Inclusion of the public disclosure of survey results into the RAP process so that the affected community can verify the survey results and minimise the potential that land and/or assets of vulnerable groups are claimed by other persons.  In addition to the disclosure of survey results, project compensation rates, entitlement, timing and procedures of payment disbursement will be disclosed to PAPs prior to signature of compensation agreement.  Project construction activities will be confined in the project ROW. Any land/water use beyond the ROW will be recorded, surveyed and compensated in line with requirements/procedures defined in this RAP report. If the temporary land use in the 10m ROW exceeds 1.5 years, (1) Sensitization activities include introduction of the entry purpose, paying respects to the village head, village organisations and villagers and obtain preliminary consent for formal entry by subsequent consultation/survey activities. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 46 compensation will be paid for the PAPs in line with the entitlements specified in this RAP.  Ceremony cost of the shrine is included into the compensation entitlement.  At least one Septa CLO will be women to address concerns of women not being able to enter the ROW during the valuation survey and not being appropriately represented by men. During livelihood restoration planning, focus group discussion with women will be held separately to address women’s need for income restoration.  CLOs should be recruited from local affected community, wherever possible.  The project may consider compensating PAPs in multiple tranches rather than a one-off cash payment. Compensation can be paid annually plus interest. This decision has to be made jointly with the PAPs and affected communities.  Claims relating to survey mistakes will be addressed through the grievance procedure. Septa will work with Forestry Department in the Akwa Ibom State Ministry of Environment to understand the ownership of the Forest Reserve and make compensation accordingly.  The project will pay compensation directly to individual household without going through village leadership or local government. This message will be reinforced to the affected community during the disclosure of survey results and compensation agreement signature.  The project has developed and will implement a preferential employment policy for using local labours during the pipeline construction.  According to IFC PS5, some suggestions on livelihood restoration such as job training are not strictly within project obligations for the land acquisition and compensation; however the project may include those into the community MoU to benefit local communities.  Project related EHS concerns will be addressed by Septa EHS department outside of the RAP process, probably including project EHS information disclosure. 6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN Future participation and consultation that are required during RAP implementation are summarised in Table 6.3. Table 6.3 Future Participation and Consultation Plan Date Activity Expected Outcome June 2012 Septa Energy to pay formal village pre-entry To pave the way for access to negotiate visits to affected communities. land use and compensation agreements. July 2012 Septa to conduct supplementary survey of any To verify that survey results are unrecorded assets accurate. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 47 Date Activity Expected Outcome July 2012 Septa to conduct orientation courses for PAPs To enable the smooth process of to train them on financial management. compensation payment. July-September  Signing compensation agreements with  Compensation agreements with 2012 affected households and villages. The affected households and villages. survey form and entitlement matrix will  Compensation disbursement to form an annex to the contract to verify the affected communities. amount for compensation.  Pay compensation to the affected households and villages at the agreed rates. Land access for pipeline installation may commence upon compensation disbursement. August 2012 – Implement livelihood restoration measures Restore income of PAPs December 2013 June-December Monthly RAP implementation monitoring. Monitor the land acquisition progress 2012 and outcomes and to propose corrective actions if necessary. January-June Conduct bi-monthly RAP implementation Monitor the land acquisition progress 2013 monitoring. and outcomes and to propose corrective actions if necessary. December 2013 Conduct RAP implementation M&E. Monitor and evaluate the outcomes of the LR plan and propose corrective actions if necessary. May 2014 Conduct Completion Audit. To close out the Projects responsibilities to affected persons and communities under the RAP and to conclude the land acquisition process. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 48 7 COMPENSATION AND INCOME RESTORATION 7.1 INTRODUCTION The Project compensation entitlements have been developed based on the project land acquisition principles (refer to Section 4.5) in accordance with the requirements of local Nigerian Law. 7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA 7.2.1 Nigerian Legal Requirements Local legislation delineates two forms of land rights: (i) statutory rights of occupancy; and (ii) customary rights of occupancy, which recognises that both these rights of occupancy can be held either by individuals or communities. In other words, both statutory rights of occupancy and customary rights of occupancy are recognised, but no individual, household or community has the right to own the land that they occupy. Accordingly, when this land is subject to removal for “overriding public interest”, compensation is not required for the loss of the land itself, but rather only for “unexhausted improvements” made to the land. In addition, other forms of land occupancy, such as encroachment, are not at all recognised under local legislation, and thus when encroached land is removed for overriding public interest, no compensation is provided to the encroacher. 7.2.2 International Standards PS 5 provides broader eligibility and entitlement criteria than those under Nigerian legislation. Firstly, statutory and customary rights of occupancy are understood as ownership rights for the purposes of compensation. In other words, the absence of statutory or customary ownership rights is not in itself a bar to the provision of compensation for loss of land, assuming that some form of occupancy right is held for the land. In addition, under PS 5, and unlike under local legislation, encroachers, “squatters” or people who are residing on or otherwise using or occupying land in violation of local or national laws are also deemed as eligible groups in the context of eligibility for compensation. They are not entitled to compensation for the loss of the land itself, but they are entitled to compensation for any improvements made to that land, as well as assistance if they occupied the ROW prior to the established cut-off date. 7.2.3 Summary Table 7.1 provides a summary of the differences in eligibility and entitlement criteria between local legislation, and IFC PS 5. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 49 Table 7.1 Comparison of Eligibility and Entitlement Criteria Group Nigerian Legislation IFC PS5 Holder of a statutory right of Eligible for compensation as a Eligible for compensation as Occupancy land occupier but not as a land for land owners owner Holder of a customary right of Eligible for compensation as a Eligible for compensation as occupancy land occupier but not as a land for land owners owner Not eligible for compensation Eligible for compensation as Encroacher for land occupier but not as a land owner The Project has agreed to adhere to both local legislation and the more comprehensive eligibility and entitlement criteria of IFC PS5, as outlined in more detail in the following sections. 7.3 COMPENSATION REQUIREMENTS 7.3.1 Local Requirements According to the Nigerian Land Act and Oil Pipeline Act, the owner and occupier are not entitled to compensation for the land itself, but rather only to compensation for improvements made to that land, i.e. the loss of land value. For individually-held land, the compensation should be paid to the individual who holds the occupancy right. For communally-held community land, where occupancy rights are not claimed by any one individual, the recipient of the compensation may be: (a) the community; (b) the chief or leader of the community, to be disposed of by him for the benefit of the community in accordance with the applicable customary law; or (c) a community fund, to then be utilised for the benefit of the community. For gas pipeline projects, the value of unexhausted improvements is compensated according to a schedule of rates issued by the Oil Producers Trade Section (OPTS). The OPTS was developed in the wake of differences in the rates applied by the States within the South-South Geopolitical Zone and other oil producing states of Nigeria (comprising Edo, Rivers, Bayelsa, Cross River, Ondo, Imo, Akwa Ibom and Delta States). The objective of applying OPTS rate is to harmonise compensation rates for these areas, even though some of the States have gone ahead to review their internal rates. The latest OPTS compensation rates were those published in 2003. Two years of OPTS rates were developed; Akwa Ibom State updated its compensation rates for land acquisition in January 1st 2005, probably to meet its own internal objectives of land governance. The above compensation provisions (a) take depreciation into account; and (b) do not employ market rates as a basis for compensation, therefore are lower than those required by IFC PS 5, as outlined below. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 50 7.3.2 International Requirements IFC PS 5 requires the following:  Compensation for loss of land. For those holding customary rights of land occupancy, the provision of compensation for improvements made to the land should be supplemented by the provision of compensation for the loss of land itself.  Full replacement cost. The principle of full replacement cost should be adhered to in assessing and compensating for loss of land and assets. This principle can be defined as the market value of the land /assets plus transaction costs. When employing this method of valuation, depreciation should not be taken into account.  Income restoration measures: if land-for-land compensation is not available, alternative income earning opportunities may be provided, such as credit facilities, training, cash, or employment opportunities. 7.3.3 Project Approach to Compensation Compensation for Permanent Land Acquisition For permanent land acquisition, compensation for the land will be paid at full replacement cost. For cultivated land, this includes:  Market value of the land;  Improvements to the land as defined by Nigerian law;  Clearance allowance to prepare the land for farming; and  Transitional support for loss of income during the period before replacement land is available. This is to be calculated based on an estimate of a reasonable time required to restore income earning capacity, productivity levels and associated livelihoods. Visual assessment and village consultation prove land is available within the local area, the cash compensation will allow affected households to purchase new land for farming. For non-cultivated land, compensation will be paid at the market value of the land only. Compensation for Temporary Occupation of Cultivated Land For temporary occupation of cultivated land, compensation will include:  Land rental for 18 months when the land is required for construction;  Improvement of the land as defined by Nigerian law;  Clearance allowance to prepare the land for farming; and  Transitional support for loss of income before the land is restored to its previous productivity level and associated livelihood. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 51 For non-cultivated land, compensation will be paid for 18 months’ rental only. Compensation Rate for Assets The Project will adopt the highest compensation rates among Akwa Ibom State government rates, OPTS rates and market prices for each affected asset. The compensation rates will be applied consistently across the four LGAs. Physical and Cultural Property Cultural property that will be affected by the Project includes sacred forest and shrines. Wherever possible, disturbance to sacred sites will be avoided. It is likely however, that shrines will need to be relocated before pipeline construction commences. In these cases, cash compensation will be paid to the families and priests are to conduct required ceremonies to move the shrines. In addition, a cash amount to cover physical relocation costs of the shrines will be provided. Construction will not commence until these ceremonies have been completed. Compensation for Water Bodies Cash compensation will be provided for: 1) Unmovable fishing traps and nets at market value; and 2) Transitional allowance for loss of income from swamps. Vulnerable Groups Particular attention is being given to the needs of vulnerable groups in the context of compensation. Based on consultation with those households identified as vulnerable, an appropriate additional transitional allowance will be determined, and distributed to these households, in monthly instalments, over a six month period. Claims for assistance for vulnerable groups will be approved by the Land Acquisition Committee. 7.3.4 Valuation Method The valuation process was as follows:  Each class of tree type was counted individually.  With regards to crops, tape measurements were used to determine the crop plantation area held by the claimant.  Photographs of both the claimant and the assets were taken.  The GPS coordinates of each asset were recorded.  All survey data was recorded in individual Land/Asset Survey Sheets. Each Sheet was then individually endorsed by the relevant claimant and the surveyor. This endorsement was witnessed by the Chief Representatives. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 52 To ascertain the current market value of crops and trees, the “investment” approach will be used. This method involves the determination of the opportunity cost of the rights of the claimants to the incomes from their individual farms and plantations throughout the land acquisition period. To arrive at the rates for each of the identified crops / trees the following process will be followed:  Determine the total yield of product per tree / crop type.  Establish the market price of the product.  Establish the market costs of seedlings and add this to the total loss.  Multiply the resulting total by the number of crops / trees assessed for each claimant. The survey categorised each crop / tree into mature, immature and seedling. Mature were those that were about to or had started bearing fruits, while immature were those that had not started bearing fruits but were older than seedlings. These categories will then be subject to consideration as follows:  Matured tree: 100% of the market value;  Immature tree: 50% of the market value; and  Seedling: 25% of the market value. Supplementing the above values, the following entitlements will also be factored into the final compensation provisions as shown in Table 7.2. Table 7.2 Compensation Provision Rate / Unit Name Amount (N) Land Improvement Costs of agricultural inputs including 50 / m2 fertilizers/pesticides/herbicides Clearance Allowance 30 / m2 Cost of labour involving in clearing land Averagely 7% as annual return for Land rental for 28/ m2 / year agricultural land uses, multiplying land Temporary Land Use market value of 400/m2. Transitional Support for Loss of income for two farming seasons Loss of Income from 80/m2 within one year, using cassava as a common Cultivated Land crop. Transitional Support for Loss of fishing yield from the swamps within Loss of Income from 46/m2 1.5 year. Swamp 7.4 LIVELIHOOD RESTORATION STRATEGIES Given the demand from PAPs for livelihood restoration (see Section 6.2.1), the Project will endeavour to restore, and preferably improve, the income earning capacity of PAPs. Specific livelihood restoration strategies are to be determined in consultation with affected people. These will include the following:  Land-based schemes to improve agricultural income. An intensive agricultural development programme including: (i) the provision of crop ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 53 seeds or tree seedlings to PAPs for free; and (ii) the provision of training (perhaps through the employment of an Agricultural Extension Officer) to enhance farming skills and to encourage the use of innovative farming methods. Other key forms of support will focus on agricultural intensification, better storage techniques and adding value to agricultural produce.  Wage-based schemes. The immediate opportunities that can be provided by Septa Energy include unskilled labour required for pipeline construction. This will require coordination with the pipeline installation contractor. The Project will also ensure that local expectations about Project employment are carefully managed and not raised to an unrealistic level.  Community transportation infrastructure schemes. Small business accounts for approximately 30% of local income. The improvement of road access will assist income and livelihood restoration. The Project will address transportation infrastructure needs for local communities, including improvements to roads and access to water. Coordination with the Local Government Authorities will be important to ensure that these facilities are staffed and maintained after an initial investment by the Project. Particular attention will be given to meeting the livelihood restoration needs of vulnerable households. In particular, these households will be prioritised in relation to the provision of: (i) skills training; and (ii) Project employment. The livelihood restoration compensation for each village will be calculated based on the compensation to transitional allowance for loss of income resulted from loss of land/water within the ROW as shown in Table 7.2. Livelihood restoration will not be paid cash but by carrying out livelihood restoration measures as shown above to PAPs in each village/community. If communal land is affected, the livelihood restoration measures will cover the entire population of the community. It must be made clear that only those directly affected by project land use are eligible for compensation for loss of land or assets and livelihood restoration. However, the Project is considering wider community development provisions that will be made available to both displaced persons and to the broader community through Village MoU. In addition, the project consultation finds out that the youth, fishermen and women of affected community suggest that they want to undertake certain job training to improve their employment skills and income level. These requests may be considered and addressed through village MoU. 7.5 ENTITLEMENT MATRIX The entitlement matrix for the Project is presented in Table 7.3. Templates of compensation matrices for community and affected individual households are presented in Annex C. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 54 Table 7.3 Entitlement Matrix Affected Nigerian Government People Type of Loss Compensation Project Entitlement Eligible Group Category Provision Agricultural Permanent No compensation for Compensation of land at market value, N420/m2. Land owner land occupier Acquisition of the loss of land itself (customary 15m ROW right of land Permanent Land improvement 1) Cash compensation for land improvements (as defined by Nigerian law), N50/m2 Land user (i.e. occupancy) Acquisition of only based on costs of agricultural inputs (fertilizers/pesticides/herbicides) expressed people who are cultivated land per m2. farming the land, if within 15m 2) Clearance allowance in cash to prepare replacement land for farming, N30/m2 different from the ROW based on costs of clearing each square meter of land. land owner) 3) Transitional support for loss of income for one year, N80/m2, based on the anticipated loss of income for two farming seasons (cassava adopted as common crop). This is not paid in cash but through livelihood restoration programmes. Temporary use None 1) Land rental (i.e. loss of income) for an 18 month period to allow construction, Land user (i.e. of Land of based on local rental value of the land for a period of 1.5 years at N42/m2; people who are cultivated land 2) Improvement of the land as defined by Nigerian laws, N50/m2 based on costs of farming the land, if within 10m agricultural inputs (fertilizers/pesticides/herbicides) expressed per m2; different from land ROW 3) Clearance allowance in cash to prepare replacement land for farming, N30/m2 owner) based on costs of clearing each square meter of land; and 4) Transitional support for loss of income for one year, N80/m2, based on the anticipated loss of income for two farming seasons (cassava adopted as common crop). This is not paid in cash but through livelihood restoration programmes. Crop/tree Standing Cash value of the Cash compensation paid at the higher value of: i) market price, ii) Government rates; Crop/tree owner cultivator crops/trees standing crops and and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. trees, as per government or OPTS rates. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA L 55 Affected Nigerian Government People Type of Loss Compensation Project Entitlement Eligible Group Category Provision Asset Owner Structures and Cash value of the asset, Cash compensation paid at the higher value of: i) market price, ii) Government rates; Asset owner asset as per government or and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. OPTS rates. Shrine Owner Cultural Cash value of the Cash compensation will be paid at full replacement value, including cost for Shrine owner Property (i.e. shrine, as per the ceremonies and relocation, N60,000 for personal shrines and N180,000 for family shrines) government or OPTS shrines. rates Water User Water surface Cash value of 1) Cash compensation for unmovable traps and nets based on market value, N50,000 Water user (incl. swamp) unmovable traps and per unit. nets only 2) Transitional support for loss of income, N46/m2, based on the anticipated loss of fish yield from the swamps and water rental for 1.5 years. Community Permanent No Compensation of land at market value, N420/m2. Community Members Acquisition of compensation for loss Dependent on 15m ROW of land Communally Held Lands Permanent Land improvements 1) Cash compensation for land improvements (as defined by Nigerian law), N50/m 2; Community Resources / Acquisition of only 2) Clearance allowance in cash to prepare replacement land for farming, N30/m 2. Assets cultivated land 3) Transitional support for loss of income for one year, N80/m2, based on the within 15m anticipated loss of income for two farming seasons (cassava adopted as common ROW crop). This is not paid in cash but through livelihood restoration programmes. Temporary use None 1) Land rental (i.e. loss of income) for an 18 month period to allow construction, Community of Land of N42/m2; cultivated land 2) Improvement of the land as defined by the Nigeria laws, N50/m2; within 10m 3) Clearance allowance in cash to prepare replacement land for farming, N30/m2 ROW based on costs of clearing each square meter of land; and 4) Transitional support for loss of income for one year, N80/m2, based on the anticipated loss of income for two farming seasons (cassava adopted as common crop). This is not paid in cash but through livelihood restoration programmes. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA L 56 Affected Nigerian Government People Type of Loss Compensation Project Entitlement Eligible Group Category Provision Communal Cash value of the asset, Cash compensation paid at the higher value of: i) market price, Government rates; and Community asset, crops and as per the government iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D. trees or OPTS rates. Communal Cash value of the Cash compensation will be paid at full replacement value, including cost for Community Cultural shrine, as per the ceremonies and relocation, N 1,440,000 per unit for village shrines. Property (i.e. government or OPTS shrines) rates Water surface Cash value of 1) Cash compensation for unmovable traps and nets based on market value, N50,000 Community (incl. swamp) unmovable traps and per unit. nets only 2) Transitional support for loss of income, N46/m2, based on the anticipated loss of fish yield from the swamps and water rental. Access road None Cash compensation for the cost of road construction at replacement value, Community N1,500,000/km for earth road. All Loss of income None Livelihood restoration measures include All affected 1. land-based schemes, including agricultural training, agricultural intensification, community better storage techniques and adding value to agricultural produce; members 2. Wage-based schemes to provide permanent or temporary employment opportunities to affected communities; and 3. Village infrastructure schemes to assist community access to better road. Vulnerable 1) An appropriate additional transitional allowance will be provided to vulnerable Vulnerable groups groups households, in monthly instalments, over a six month period; and 2) Preferential provision of: (i) skills training; and (ii) Project employment. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA L 57 8 MONITORING AND EVALUATION 8.1 INTRODUCTION The IFC PS5 require establishment of procedures to monitor and evaluate all land acquisition processes. To ensure that the land acquisition (including associated compensation and livelihood restoration) is carried out as planned, the process is subject to monitoring both internally and externally during the construction period of the project. 8.1.1 Objectives The objectives of the Project’s land acquisition monitoring are as follows:  To provide the Project with feedback on RAP implementation and to identify problems and successes as early as possible to allow the timely adjustment of implementation arrangements; and  To enable the Project to demonstrate that the land acquisition process is being managed in line with the Project’s objectives and desired outcomes, as well as with the requirements of Project stakeholders. In short, RAP monitoring activities are integral to the success of the Project’s land acquisition process and will help to demonstrate this. These monitoring activities will be integrated into the overall Project management process. 8.2 MONITORING AND EVALUATION PLAN Monitoring will be initiated at an early stage in the land acquisition process and will cover all affected households and communities. Monitoring and evaluation (M&E) will continue for approximately two years, however during this period, the intensity of the process will vary. For example, before and immediately after the actual Project land take, M&E will be fairly intense. As the RAP implementation progresses the frequency of the M&E will reduce. The Project’s M&E plan will have two key components; namely:  Progress monitoring; and  Outcome evaluation. There will be both internal and external monitoring of the RAP implementation, as follows:  Internal monitoring: consisting of progress monitoring and outcome evaluation, undertaken by the Project; and  External monitoring: of progress and outcome evaluation that will be carried out by a third party. This will include a completion audit. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 58 8.2.1 Progress Monitoring Progress monitoring allows the Project to track progress against milestones established in the RAP. Progress will be reported against the implementation schedule of required actions shown in Table 9.1. The CLO will report monthly on the progress of activities in Table 9.1 and action plans identified in each monitoring report. During land acquisition and pipeline construction, the monitoring will focus on negotiating agreements, compensation payments, transitional assistance and assistance to vulnerable groups. Upon pipeline installation, the focus of the monitoring will shift towards implementation of livelihood restoration plans. Monitoring of information disclosure, consultation and grievance redress will be ongoing throughout the Project up until the completion audit. The CLO will report on the disbursement of compensation against valid entitlement matrices within the defined timetable. A minimum sample of 30% of payment records will be inspected to verify that compensation has been made in full and in a timely manner, ie prior to land access. The CLO will identify any delayed inputs and reasons for the delay, and work with action owners to schedule for action completion (e.g. shifting action to next monitoring period). 8.2.2 Outcome Evaluation Outcome evaluation, like progress monitoring, is an internal Project task. It gauges the effectiveness of the RAP and its implementation in meeting the stated objectives of the Project, ie to compensate for loss of assets at full replacement cost and to ensure that incomes have not been negatively affected. The effects of the RAP will be measured against the baseline conditions of the affected communities prior to land acquisition. Objective verifiable indicators will be established for measuring the impact of land acquisition on the socio- economic welfare of the affected people and the effectiveness of livelihood restoration measures. The Project’s evaluation indicators will include:  household income;  agricultural output; and  frequency of meat consumption. Failure to achieve the desired outcome targets will indicate the need to determine the cause and whether the measure or delivery methods should be changed. Outcome evaluation monitoring will be based upon sample surveys of the affected communities and will continue until a completion audit is complete. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 59 8.2.3 External Monitoring and Completion Audit An external monitor will be appointed to verify internal M&E processes and to evaluate livelihood restoration outcomes. The external monitor may conduct M&E against the progress and outcome indicators developed by the Project, or other indicators selected independently. The external monitor will undertake M&E through review of the socio-economic surveys undertaken during RAP preparation and consultation with Project staff, affected persons, community representatives and other stakeholders as necessary. The External Monitor will make recommendations for improving land acquisition processes and procedures, as well as indicators for monitoring outcomes, where appropriate. The External Monitor will conduct the following M&E activities:  Review of internal monitoring reports to verify whether they are being undertaken in compliance with the RAP.  Review grievance records for compliance with the Grievance Redress Procedure;  Interview land acquisition and LR staff, a cross section of affected households, community leaders and other key informants, to ascertain the effectiveness of resettlement-related activities and the extent to which living standards and livelihoods are restored or enhanced as result of the land acquisition process.  Assess overall compliance of the land acquisition and compensation process with the Project RAP, Nigerian laws and regulations and IFC PS5 (2012). A completion audit will be conducted by a third party monitor, who is yet to be decided, upon the completion of pipeline installation and all associated measures in this RAP. The completion audit will involve a final outcome evaluation on completion of the RAP implementation, likely to be in 2013/4. The completion audit will verify: (a) that all RAP inputs committed to have been delivered and all services provided, and (b) efforts to restore the livelihoods of the affected population have been properly conceived and executed and have had the desired effect. A successful completion audit will bring to a close liability in the land acquisition process. If the completion audit demonstrates that livelihood restoration objectives have not yet been achieved, however, further action will be planned and implemented as appropriate. 8.3 M&E ROLES AND RESPONSIBILITIES The Project’s external monitoring and completion audit will be conducted by a third party, while the progress monitoring and outcome evaluation will be undertaken by Project staff, as outlined below. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 60 The Livelihood Restoration Manager will lead the M&E process, supported by the CLOs and government representatives, if applicable. Specifically, the Livelihood Restoration Manager will be responsible for implementing the progress monitoring and outcome evaluation by:  Proposing relevant progress milestones and outcome evaluation indicators;  Directing the CLOs to collect necessary data to verify progress against Project milestones and outcome evaluation indicators;  Recording data and other evidence;  Evaluating outcomes of the basis of the data collected; and  Proposing corrective or additional measures, if necessary. The Livelihood Restoration Manager will maintain a monitoring database in which all relevant information will be entered, and will then be responsible for producing regular M&E reports for submission to the Land Acquisition Committee . These reports will form the basis upon which specific additional interventions and associated implementation plans (including deadlines, responsibilities and resource requirements) will be agreed by the Land Acquisition Committee and implemented by the Livelihood Restoration Manager. Such interventions and associated implementation plans will then be added to the monitoring database, for subsequent regular review. 8.4 SCHEDULE AND REPORTING 8.4.1 Internal Monitoring The internal monitoring will be conducted as following:  Monthly during the first six months of land acquisition and compensation in 2012;  Bi-monthly for the first half of 2013; and  Six-monthly from June 2013 until the completion of the RAP. The results of the internal monitoring will be reported by the Land Acquisition Committee to the Project Management Team include the following:  Monthly Internal Monitoring Report during the first six months of implementation of land acquisition and compensation;  Bi-monthly Internal Monitoring Report for the first half of 2013; and  Six-monthly Internal Monitoring Report from the second half of 2013 until the completion of the RAP. The monitoring reports will include qualitative assessment and quantitative data with emphasis on progress towards achieving the objectives of the land acquisition and associated activities. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 61 8.4.2 External Monitoring External monitoring will commence in the second half of 2012 and be conducted every six months until the completion of the RAP implementation (which is to be verified through a completion audit). Six-monthly External Monitoring Reports will be prepared and submitted to the Land Acquisition Committee two weeks after each round of external monitoring. 8.4.3 Completion Audit A completion audit will be conducted by an external monitor in 2013/4. The completion audit report will be submitted one month after the audit. 8.5 OVERALL MONITORING SCHEDULE Table 8.1 presents the proposed project monitoring plan. Table 8.1 Tentative Monitoring Schedule 2012 2013 2014 Task Organisation 6 7 8 9 1011 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 Internal Monitoring Septa External Monitoring Third Party Completion Audit Third Party ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 62 9 SCHEDULE OF IMPLEMENTATION 9.1 SCHEDULE OF IMPLEMENTATION Table 9.1 an outlines implementation plans for land acquisition and associated activities. Table 9.1 Land Acquisition and Livelihood Restoration Schedule 2012 2013 2014 Task Responsibility 6 7 8 9 1011 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 Disclose & consult on Septa/ERM draft RAP Revise and finalise ERM RAP Recruit NGO partner Septa Community Septa/NGO Consultation and Engagement Grievance Redressing Septa/NGO Supplementary Septa/NGO Survey Orientation of PAPs Septa/NGO Plan livelihood Septa/NGO restoration Draft household level Septa/NGO entitlements Household level sign Septa/NGO off on entitlements Compensation Septa/NGO disbursement Implement livelihood Septa/NGO restoration programme Internal Monitoring Septa External Monitoring Third Party Completion Audit Third Party ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 63 10 BUDGET Total project compensation is estimated to be N 629,966,658 (USD 3.95 million), including N 612,435,590 (USD 3.84 million) paid in cash and N 17,531,068 (USD 0.11 million) for livelihood restoration programmes. Details are shown in Table 10.1. Table 10.1 Budget for Project Compensation Compensation Amount Item Unit Quantity Rates (Naira) (Naira/Unit) Permanent acquisition within m2 585,450 420 245,889,168 15m ROW Land 1.5 year rental on temporary m2/year 389,062 28 16,340,600 land within 10m ROW Cultivated Land Improvement m2 219,138 50 10,956,918 Land Clearance Allowance m2 219,138 30 6,574,151 Allowance for Loss of Temporary Structure Month 6 18,000 108,000 Swamp Fishing Right m2 11,377 46 523,342 Cassava m2 192,033 80 15,362,640 Coco Yam m2 1,085 30.74 33,357 Corn (Maize) m2 24,488 11.25 275,491 Standing Melon m2 20,703 8.45 175,033 Crops Pineapples Unit 545 350 190,750 Vegetables m2 5,846 7.5 43,841 Yam m2 2,575 100 257,500 Mature Unit 5,342 7,500 40,065,000 Hard Wood Immature Unit 7,907 3,750 29,651,250 Mature Unit 1,026 6,500 6,669,000 Soft Wood Immature Unit 1,484 3,250 4,823,000 Mature Unit 10,679 5,100 54,462,900 Palm Tree Immature Unit 12,264 2,550 31,273,200 Seedling Unit 206 1,275 262,650 Mature Unit 2,154 250 538,500 Economic Stakes Immature Unit 586 150 87,900 Trees Mature Unit 130 3,300 429,000 Mango Tree Immature Unit 36 1,650 59,400 Mature Unit 2,653 5,100 13,530,300 Medicine Tree Immature Unit 460 2,550 1,173,000 Mature Unit 290 4,400 1,276,000 Pear Tree Immature Unit 21 2,200 46,200 Banana Mature Unit 43 1,000 43,000 (Plantain) Immature Unit 5 500 2,500 Personally Owned Unit. 10 60,000 600,000 Shrines Family Owned Unit 20 18,000 3,600,000 Community Owned Unit 87 1,440,000 125,280,000 Fish Ponds m2 70 4,000 280,000 Fishing Traps Unit 12 50,000 600,000 Other Assets Temporary Structure m2 93 4,000 372,000 Borehole Unit 2 250,000 500,000 Well Unit 1 80,000 80,000 Subtotal (Compensation) 612,435,590 LR Programme Cultivated Land m2 219,138 80 17,531,068 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 64 Compensation Amount Item Unit Quantity Rates (Naira) (Naira/Unit) Subtotal (Livelihood Restoration Programme) 17,531,068 N 629,966,658 Grand Total (USD3,947,160) Costs not included in this estimate include the following:  Costs associated with disclosure and verification of survey results;  Cost of NGO involvement;  Cost of government involvement in land acquisition and compensation;  Monitoring and evaluation; and  Management time. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED 65 Annex A Vulnerable Group List Vulnerable Group List Name of No. LGA Village Vulnerability Household Head 1 Adahafriyo Chief Sunday Eyo Households headed by disabled ESIT EKET Udo and/or elderly people 2 Akpautong Okon Etim Atti Households living in poverty 3 Akpautong Samuel Monday Households living in poverty Akpama 4 Akpautong Nseobong Women headed households 5 Akpautong Mary Asuquo Women headed households Nyoho 6 Idung Asua - Etebi Effiong Abia Households headed by disabled and/or elderly people 7 Idung Asua - Etebi Anietie Peter eyo Households living in poverty 8 Idung Asua - Etebi Mary Households living in poverty 9 Idung Asua - Etebi Essien Philips Households headed by disabled and/or elderly people 10 Idung Ataudim Mfon Francis Ben Women headed households 11 Idung Ita Etebi Mary Eyo Jack Women headed households 12 Idung Okpokpo Chief Friday Households headed by disabled Obiofiong and/or elderly people 13 Idung Okpudo Ikwo Philip Women headed households 14 Idung Udonsak Adiaha Hanson Women headed households Awai 15 Idung Udonsak Adiaha Women headed households EdohoUqua 16 Odoro Ukuk Friday Sampson Households living in poverty Eyo 17 Odoro Ukuk Sunday Asuquo Households living in poverty Atara 18 Oniok Edo Enam William Households headed by disabled and/or elderly people 19 Oniok Edo Abia Peter Households headed by disabled and/or elderly people 20 Oniok Edo Sunday Jimmy Households headed by disabled akpanam and/or elderly people 21 UDUNG Edikor Eyokpo Chief Jerome Households headed by disabled UKO Ukpe and/or elderly people 22 URUE Edok Affiong Okon Women headed households 23 OFFIONG/ Eyokwong Chief Edet Households headed by disabled ORUKO Odokwo and/or elderly people 24 Udung Uwe chief Edem Households headed by disabled Asangansi and/or elderly people 25 Mbo Akai Owu Essang Massodi Households headed by disabled and/or elderly people 26 Akai Owu Etim Awana Households headed by disabled and/or elderly people ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED A1 Name of No. LGA Village Vulnerability Household Head 27 Akai Owu Nkoyo Nyong Women headed households 28 Mbo Akai Owu Arit Ben Women headed households 29 Akai Owu Sarah Okon Women headed households 30 Akai Owu Nkoyo Edet Women headed households 31 Udung Ikpang Isaac Jacob Innan Households headed by disabled and/or elderly people 32 Ukoitak Eyulor Obisung Uwak Households living in poverty ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED A2 Annex B Oron Gas Pipeline License ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED B1 Annex C Template of Entitlement Form Template for Household Compensation Entitlement Asset Owned/ Claimant Personal information Head of Claims: Compensation S/No Mature (M), Unit Quantity Subtotal Rate Compensation Immature (IM), Assessment ID Village Name Category Seedlings (S) Total Claim ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED C1 Annex D Compensation Rates Project Compensation Rates Government Rates Market Value Rates (IFC Requirements) Recommended Rates Akwa Ibom State OPTS Rates Asset type Mature Immatured Seedling Mature Immatured Seedling Matured Immatured Seedling Matured Immatured Seedling Land Attachments Hardwood/Unit 5,000.00 2,500.00 1,250.00 1,500.00 750.00 350.00 7,500.00 3,750.00 1,875.00 7,500.00 3,750.00 1,875.00 Softwood/Unit 5,000.00 2,500.00 1,250.00 1,500.00 750.00 350.00 6,500.00 3,250.00 1,625.00 6,500.00 3,250.00 1,625.00 Palmtree/Unit 2,500.00 1,250.00 625.00 600.00 300.00 150.00 5,100.00 2,550.00 1,275.00 5,100.00 2,550.00 1,275.00 Bamboo/Unit 200.00 100.00 50.00 100.00 50.00 25.00 250.00 125.00 62.50 250.00 125.00 62.50 orange/Unit 300.00 150.00 75.00 2,000.00 1,000.00 500.00 2,912.00 1,456.00 728.00 2,912.00 1,456.00 728.00 Mango/Unit 1,000.00 500.00 250.00 2,000.00 1,000.00 500.00 3,300.00 1,650.00 825.00 3,300.00 1,650.00 825.00 Plantain/Unit 1,000.00 500.00 250.00 1,000.00 500.00 250.00 546.00 273.00 136.50 1,000.00 500.00 250.00 Banana/Unit 800.00 400.00 200.00 800.00 400.00 200.00 514.00 257.00 128.50 800.00 400.00 200.00 Stakes/Unit 200.00 150.00 75.00 200.00 100.00 50.00 250.00 125.00 62.50 250.00 150.00 75.00 Pear/Unit 1,000.00 500.00 250.00 1,000.00 500.00 250.00 4,400.00 2,200.00 1,100.00 4,400.00 2,200.00 4,400.00 Medicinal Trees/Unit Not sold in the market but equated with the rates for palmtree as a common asset. 5,100.00 2,550.00 1,275.00 Land User: Crops Cassava/hectare 50,000.00 25,000.00 12,500.00 800,000.00 650,000.00 450,000.00 215,775.00 107,887.50 53,943.75 800,000.00 650,000.00 450,000.00 Cassava/Unit - - - 200.00 150.00 100.00 137.00 68.50 34.25 200.00 150.00 100.00 Yam/hectare 80,000.00 40,000.00 20,000.00 1,000,000.00 950,000.00 500,200.00 466,578.00 233,289.00 116,644.50 1,000,000.00 950,000.00 500,200.00 Yam/Unit - - - 115.00 79.00 50.00 185.15 92.58 46.29 185.15 92.58 46.29 Pineapple/Unit 200.00 100.00 50.00 - - - 350.00 175.00 87.50 350.00 175.00 87.50 Cocoyam/hectare 30,000.00 15,000.00 7,500.00 56,250.00 30,120.00 22,000.00 307,440.00 153,720.00 76,860.00 307,440.00 153,720.00 76,860.00 Cocoyam/Unit - - - 18.00 14.00 9.00 122.00 61.00 30.50 122.00 61.00 30.50 Corn (Maize)/hectare 20,000.00 10,000.00 5,000.00 112,500.00 100,250.00 81,520.00 32,760.00 16,380.00 8,190.00 112,500.00 100,250.00 81,520.00 Corn (Maize)/Unit - - - 20.00 15.00 11.00 3.12 1.56 0.78 20.00 15.00 11.00 Vegetable/m2 20,000.00 10,000.00 5,000.00 55,000.00 45,000.00 25,125.00 75,000.00 37,500.00 18,750.00 75,000.00 45,000.00 25,125.00 Swamps Traps - 50,000.00 50,000.00 Fishing rights /m2 - - 46.00 46.00 Asset Shrines (Personal)/Unit 50,000.00 50,000.00 - 60,000.00 Shrines (Family)/Unit 150,000.00 150,000.00 - 180,000.00 Shrines Community)/Unit 1,200,000.00 1,200,000.00 - 1,440,000.00 Earth roads/Km - - - 1,500,000.00 Land Land value (Esit Eket Zone)/m2 - - 400.00 420.00 Land value (Urue Offong/Mbo Zones)/m2 0 0 300.00 420.00 Land value (Oron Zone)/m2 0 0 300.00 420.00 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D1 D1 Justification for Compensation Rates Rate / Unit Name Specification Justification (N) Market value N 400,000 of Market value (N 400 per m2) product in Esit Eket for Land 420/m2 plus transaction cost of N 20 per 1,000m2 land. Transaction m2. cost for government tax is 5%. Base on an average 7% annual Rental for return for agricultural land. 28/ m2 / Land market value is N temporary land Derived from an assumed 7& year 400/m2. use rental income on land with a market value of N400/m2 Water rental Fishing income is N4 per m2 1.5 years of land rental plus loss for temporary 46/ m2 per 1.5 years plus water rental of fishing income land use of N 42/m2. Fertilizer N 8 Land Costs of agricultural inputs pesticide/herbicide 12 and Improvement 50 / m2 including labour and labour N 30, per m2 land. fertilisers/pesticides/herbicides Labour cost includes hiring sprayers/sprinklers. Land Clearance Labour cost of N 30,000 for 30 / m2 Cost of labour to clear land Allowance clearance. Loss of Income Loss of income for one farming Market price of cassava from 80/m2 season, using cassava as the N800,000 per hectare, i.e. N80 Cultivated basis. per m2. Land Costs for ceremony include 1.2 times 20% uplift is applied to those requested for Cows, Shrines government government rates to Crows, Kolanuts, cowries and rates compensate for ceremonies gins. D1.1 LAND TAKE Land take is categorized into:  Permanent land acquisition: 15m ROW  Temporary land use: 10m ROW Rate for permanent land acquisition: N420.00/m2 Derived from a direct market comparison of previous land transactions conducted in areas traversed by the pipeline. Data collected from settlements within the four Local Government Areas were gathered and analyzed. Esit Eket has the largest number of settlements and it is observed that the market value of land for residential and ancillary developments is N400,000- N450,000/1,000m2. In Urue Offong, Mbo and Udung Uko areas, the market value of land is N350,000 - N400,000/1,000m2. In some villages, there was no history of land sales reported. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D2 The ROW traverses through forests, bushland, swamp and in some cases farmland. Recognizing that the ROW is, for the most part, distant from settlements, compensation of N400,000 /1,000m2 which translates to N400 per square meter (N400,000 divided by 1,000m2) is an appropriate level of compensation for permanent land take. The government tax for land transaction is 5%, i.e. N20 per m2. Therefore the total land compensation is N420 per m2. Rate for temporary land use: N28.00/m2 /year. A figure for temporary land use for a period of one and half years was derived based on an assumed land rental income. The calculation is based on a rate of return on investment of 7%, equivalent to a premium of 3% above a nominal risk-free return of 4%. Applying a 7% return on investment to the market value of N400/m2 for permanent take, produces an annual rental of N28/m2 (400 multiplied by 7%). For a period of 1.5 years, this rises to N28/m2 multiplied by 1.5 years = N42/m2 for temporary land use. D1.2 SWAMP Water use: N46 per m2 The use of swamp is temporary for the during of the construction phase. Compensation for swamp makes reference to that of temporary land take (N42/m2), on the assumption that the land under the water will not be accessible during the 1.5 year construction period. It is estimated that the cultivable capacity of the swamp per 10,000m2 is N1,000 per fortnight. Therefore, the loss of income for one year is N26,000 per 10,000m2, i.e. N2.6/m2 per year. For loss of income of 1.5 years during the construction phase, the compensation is therefore N4/m2. The total compensation for swamp is therefore N46/m2. D1.3 LAND IMPROVEMENT Land Improvement Rate: N50 per m2 Assumes that the land user needs to improve the soil fertility of the land he/she will relocate to in order to ensure a reasonable yield. Compensation has been derived on the basis that the following is needed per 1,000m2: 1 bag of fertilizer (cost N8,000); herbicides/pesticides (cost N12,000) and labour for spraying including hiring of sprinklers/sprayers (cost N30,000). The total cost of improving 1,000m2 is therefore N50,000, equivalent to N50,00/m2. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D3 D1.4 LAND CLEARANCE ALLOWANCE Land Clearance allowance: N30 per m2. Based on the cost of labour for clearing 1,000m2 of land for the purposes of farming. This labor element includes clearing of grass, scrub and unwanted trees. It was assessed that N30,000 is required for manual labour to clear 1,000m2, equivalent to N30/m2. D1.5 LOSS OF INCOME FROM CULTIVATED LAND Loss of Income from Cultivated Land: N80 per m2 Cassava being the dominant cash crop within the ROW is adopted as the basis for the computation of income loss arising from loss of agricultural land. The rate of N80/m2 was derived from the market rate for cassava of N800,000 per hectare, equivalent to N80/m2 (computed as N800,000/10,000m2). D1.6 SHRINES Personal Shrine: N 60,000 per unit Family Shrine: N 180,000 per unit Communal Shrine: N 144,000 per unit The ownership of shrines along the ROW is either personal, family or communal . There is no market basis for valuing or estimating the costs of relocation of these shrines due to subjective requirements of each shrine owner, family or community. We have written demands for payments of sums up to N40,000,000 for removal of shrines by some communities which appear somewhat high and unverifiable. However, demands for ceremonial rites and appeasements using live animals are typical and appear to be reasonable. Given the cultural bearing of such demands, we are constrained to recommend the rates being adopted by the governments for each category of shrine. In addition, a 20% uplift of the government rate is considered sufficient to be paid to each shrine holder/owner to cover ceremonial costs and appeasements. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D4 D1.7 LAND ATTACHMENTS - STANDING CROPS AND TREES Land attachments include cash crops and trees. Compensation rates have been derived from three sources: The Akwa Ibom State Government Rate; the OPTS rates and Market Value. The IFC PS5 requires that loss of assets be compensated for at full replacement value (in this case market value). It also requires that compensation should meet local legal standards as a minimum. For some crops/trees, the market values are lower than government rates or OPTS rates. Therefore, the highest of the three rates for each category of affected land attachment will be applied. The Government rates are fixed by government and the basis of their calculations are not known to us. Market Value was determined through a survey of crops and prices within local markets. To arrive at the value of each tree/crop listed in the schedule, the following procedures were followed: 1. The unit of measurement of product as sold in the local market was established. In this case, the local measure was converted to kilogram (kg). 2. The quantity of plants per hectare was estimated by applying spacing rules for the different crops. Taking palm tree as an example, the spacing adopted is 1 tree per 22.5m2. An allowance of 20% - 25% is made for void and unproductive spacing. 3. The quantity of produce per hectare is also established for each tree/crop expressed in local unit (usually kg). 4. The price per unit for each crop/tree is established based on prices within the local markets. Based on the above variables, the values both per hectare and per unit of crops/trees were established. D2 LAND SURVEY D2.1 OBJECTIVES The objectives of the survey are: 1. To collect data on all assets of the claimants located on the Right of Way (ROW) with a view to establishing a basis of calculating individual/communal statements of claim; 2. Input the data collected into printed Assessment/Field Inspection Sheets including data on location coordinates of other assets; and 3. Establish reference points for identification of claimant’s assets and/or possible resolution of disputes during the RAP implementation process. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D5 D2.2 LAND/ASSET SURVEY TOOLS The following tools were used in the survey: 1. Printed copies of Field Inspection/Assessment Sheets; 2. Measurement tapes (Metric and Imperial units); 3. Handheld Global Positioning System (GPS) units – Etrex H navigators; and 4. Digital Cameras. D2.3 LAND/ASSET SURVEY METHODOLOGY Estate Surveyors and Valuers used in the survey are licensed to practice in any part of Nigeria by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), No. A1580. Estate Surveyors and Valuers carry out the business of property valuation for all purposes, and when carrying out such exercises they are expected to comply with the ethics and standards of practice entrenched by the Nigerian Institution of Estate Surveyors and Valuers. Estate Surveyors and Valuers operate in four groups and have adopted the following standard methodology. i. Head Counts: Regarding land attachments consisting mostly of economic trees, Estate Surveyors and Valuers conducted head counts for each class of tree type, tape measurements were used to determine the areas of plantation crop which were recorded into the appropriate spaces in the Assessment/Field Inspection Sheet. ii. Camera pictures A picture of each of the respondents/claimants was taken at the site (ROW) and printed onto the Field Inspection Sheets relating to each claim presented. iii. Land Measurement and GPS Location The GPS coordinates of the location of each of the claims presented were captured for ease of reference during the RAP implementation and imputed into the Field Sheets. In addition, a freehand sketch of the land area covered by the claim was clearly drawn into the Inspection Sheets showing records of the distances coverage in meters for each claim. The GPS uses Universal Transverse Mercator (UTM), ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D6 and for this project was referenced to Minna Datum and the data was recorded in Degrees and Minutes (DD.MM.SS) format. GPS location coordinates recorded on the Inspection Sheet also included specified assets such as shrines. . Following collection of information the forms are individually endorsed by the claimants, the assessment officer and/or the Claimant’s Representatives. ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED D7 Annex E Example of Consultation Record ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED E3 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED E3 ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED E3