NEP: Kathmandu Valley Water Supply Improvement Project (Additional Financing) Distribution Network Improvement (DNI) VII

Resettlement Plan Document stage: Draft for consultation Project number: 34304 February 2015 NEP: Kathmandu Valley Water Supply Improvement Project (Additional Financing) Distribution Network Improvement (DNI) VII Prepared by the Kathmandu Upatyaka Khanepani Limited, Ministry of Urban Development, Government of Nepal for the Asian Development Bank. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CURRENCY EQUIVALENTS (as of 12 February 2015) Currency unit Nepalese rupee (NRs/NRe) NRs1.00 = $ 0.0101 $1.00 = NRs 99.30 ABBREVIATIONS ADB Asian Development Bank BDS Bulk Distribution System CAPC Community Awareness and Participant Consultant CDC Compensation Determination Committee CIRT Community Issues Resolution Team DNI Distribution Network Improvement DSC Design and supervising consultant EMP Environmental Management Plan GESI Gender Equity and Social Inclusion GRM Grievance Redress Mechanism KUKL Kathmandu Upatyaka Khanepani Limited KVWSMB Kathmandu Valley Water Supply Management Board lpcd liters per capita per day MOUD Ministry of Urban Development MWSDB Melamchi Water Supply Development Board NGO Non Governmental Organization PID Project Implementation Directorate PPTA Project Preparatory Technical Assistance RoW Right of Way SPS Safeguard Policy Statement VDC Village Development Council WEIGHTS AND MEASURES ha hectare km kilometer m meter m 2 square meter m 3 cubic meter mm millimeter MTD metric tons per day km 2 square kilometer

TABLE OF CONTENTS Page I. PROJECT DESCRIPTION 1 A. Background 1 B. Project Component 1 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 3 III. SOCIO ECONOMIC INFORMATION AND PROFILE 5 A. Socioeconomic Profile of Kathmandu Valley 5 B. Gender Status and Considerations 7 IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 8 A. Public Consultation 8 B. Information Disclosure 9 C. Continued Consultation and Participation 9 V. GRIEVANCE REDRESS MECHANISM 10 VI. POLICY AND LEGAL FRAMEWORK 13 VII. ENTITLEMENTS, ASSISTANCE, AND BENEFITS 13 A. Eligibility 13 B. Entitlements 13 C. RP Updating, Implementation and Contract Awards 16 D. Determination of Compensation 17 VIII. INCOME RESTORATION AND REHABILITATION 18 IX. RESETTLEMENT BUDGET AND FINANCING PLAN 18 X. INSTITUTIONAL ARRANGEMENTS 19 XI. IMPLEMENTATION SCHEDULE 20 XII. MONITORING AND REPORTING 21 ANNEXES 1 Photographs 22 2 Sample ID Card for Entitled Persons 23 3 Sample Monitoring Indicators 24 4 Sample Questionnaire 25 5 Summary Procedures for Resettlement Planning 26 6 Attendance Sheet 27 7 Outline of Social Safeguards Monitoring Report 29 8 Google Map of Project Location 31 9 Endorsement of the Safeguards and Due Diligence Documents 32

I. PROJECT DESCRIPTION A. Background 1. The proposed additional financing of the Kathmandu Valley Water Supply Improvement Project 1 will support the ongoing efforts of the Government of Nepal towards improving the water supply services in Kathmandu Valley. The project will invest in bulk water transmission, water treatment plant capacity, and distribution network improvement (DNI) systems, and will complement the past and ongoing Asian Development Bank (ADB) financed projects. 2 The resultant synergy is expected to lead to increased efficiencies, greater improvement in service delivery, and higher impact on health outcomes and quality of life for inhabitants of Kathmandu Valley. 2. Kathmandu Valley is characterized by high urban population growth (5.3% per annum) and a high population density (estimated at about 2,800 persons per km). 3. The total population of Kathmandu Valley in 2011 is estimated at about 2.5 million. Rapid and largely unplanned urban growth, high population density, lack of sustainable water sources, and inadequate past investments in water supply infrastructure have resulted in abysmally poor availability and quality of drinking water. 4 Moreover, poor access to sanitation facilities, improper solid waste management systems, and groundwater and surface water pollution from untreated domestic sewage have caused increased disease incidence, health risks, and associated economic burdens disproportionately impacting the poor and vulnerable. 5 3. This is the draft resettlement plan for one specific package under the additional financing: DNI 7. It has been prepared to disclose the potential impacts that have been identified as a result of future works related to DNI 7 to be implemented by the Project Implementation Directorate of the Kathmandu Upatyaka Khanepani Limited (KUKL). The preliminary survey identified 23 businesses in the DNI 7 service area that are likely to be impacted during the pipe lying period. Final impact will be identified after detailed design and recorded in the updated RP. B. Project Component 4. DNI VII: The project will improve the distribution network and water supply services in the northern area of Kathmandu municipality within the ring road. The field survey for detailed design is complete and detailed design are ongoing. The works will improve water supply service by ensuring an adequate supply of potable water, in compliance with the KUKL operator license. The DNI area is 1, 722 ha. and will directly benefit approximately 118,352 people. The project includes the installation of more than 210 km of water distribution pipes, ranging in diameter from 50 mm to 500 mm. Most of these pipes will be within dense, narrow streets (one to two lane roads, with five to seven meter carriageways). Minor temporary disruption to businesses is anticipated in the DNI component. However, most streets will remain openand 1 The Kathmandu Valley Water Supply Improvement Project (KVWSIP) was approved on 16 September 2011. 2 Loan 1820-NEP (SF): Melamchi Water Supply Project was approved on 21 December 2000 and became effective on 28 November 2001. Loans 2058/2059-NEP (SF): Kathmandu Valley Water Services Sector Development Program were approved on 18 December 2003 and became effective on 7 December 2004. 3 Central Bureau of Statistics, Government of Nepal, 2011. 4 A baseline survey done by CRISIL under PPTA 4893-NEP in September 2010 estimates water availability at 20 liters per capita per day (lpcd) and average duration of water supply at 0.4 hours per day. Kathmandu Upatyaka Khaneani Limited (KUKL), the operator, assesses the current availability as 45 lpcd. 5 Vulnerable groups include female-headed households and below poverty line households (According to the NLSS Survey 2011, an individual is considered poor if his/her per capita total annual consumptions is below Rs. 19,261.)

2 accessable to business. To further minimize business disruption, night works will also be conducted on narrow roads. Figure 1 Location Map 1. Table 1: Proposed Water Supply Project Investments Infrastructure Function Description Location Resettlement Impact Distribute 1. All pipes 150 Supply and a. Distribution treated mm in diameter complete pipes water to or above will be laying including customers, DI; distribution surface replacing pipes for improvement existing Kathmandu works in pipes and Metro Zone will trenches in the expanding range from 75 to alongside the 140 mm in public roads in: network diameter and will into areas be of DI or HD PE 2. Pipes 150-600 mm in diameter will be used for trunk mains, and distribution mains dia = diameter, ha = hectares, m 3= cubic meter, mm = millimeter, km = kilometer. For linear works, temporary disruption to business activity leading to potential income loss is possible. Contractors will maintain access to extent possible to limit short-term impacts. Businesses will be compensated for lost income on fully closed streets, where customer access to shops is disrupted. An income survey will serve as the cut-off date. All businesses identified in the projectimpacted areas on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there is the option of using the actual income based on survey, followed by a verification of the income data based on comparable incomes in the project area.

3 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 5. There is no land acquisition associated with the proposed component. The anticipated impacts include a few temporary disruptions to business activities and income in DNI area. 6 Temporary disruptions in the DNI area will be approximately one to four days. Based on the detailed design, the design and supervision consultant (DSC) Social Safeguard Expert will update the impacts and will indicate them in the updated resettlement plan (RP).Trench sections for DNI will be 100-200 m in length. To avoid or limit the disturbance to the least extent possible, contractors are required to maintain access to shops. Mitigation measures will also be incorporated into their contracts and will be monitored by the construction supervision consultants. Economic impacts to businesses along the DNI routes are expected to be temporary and may be avoided and/or mitigated through good traffic management planning and implementation, night works, and maintaining access to shops during the construction period, as outlined in the Environmental Management Plan (EMP). 7 Under the DNI, some mobile hawkers and vendors, including those with stalls and temporary structures, will be assisted by contractors in moving to alternative locations during the short period of construction.they will also be allowed to return once the area is declared complete of construction, usually within seven days. In the event that road closure disrupts access to shops, compensation for lost income will be made for the time of disruption. 8 The Implementing Agency KUKL/PID is responsible for the implementation of the RP, including compensation and vendor assistance with sufficient budget. 6. Closing the roads during construction is not an option, as expressed by local authorities; therefore, good traffic management by the contractors in coordination with police, roads department, and communities is critical to ensure the smooth flow of vehicles, safe passage of pedestrians, and limited business impacts. The contractors will be required to maintain access to shops during trenching (metal planks, spaces, etc.), which is expected to take three to five days for larger sized pipes (70-500 mm). For DNI workstrench stretches range between 50 m to 100 m, requiring one to four days for backfilling. DNI works will primarily use the hand digging method. The roads within the DNI areas are narrower (one to two lane roads, with five to seven meter carriageways).the pipes are also smaller in diameter, resulting to fewer disturbances to residents and businesses. Based on preliminary design, it is identified that 23 businesses will be impacted. Streets requiring full closure will be closed for about one to four days. Prior to construction, contractors and DSC, with the assistance of the community participation consultants (CAPC), will be required to provide at least one to two weeks advance notice, along with an awareness campaign involving local area committees (Tole committees). 7. Business Survey: In December 2014, a survey of businesses was undertaken in order to: (i) estimate the scale of temporary impacts during construction; (ii) develop a budget for compensation; and (iii) determine the daily income of different types of businesses and hawkers in the DNI service area. For the proper estimate of temporary impacts, the design team conducted a transect walk throughout the DNI service. The technical design team assisted in identifying potential businesses that will be affected during the pipe lying period. The narrow streets where partial disruption are expected have been selected. A total of 23 different types 6 In some areas along the ring road, works are proposed outside the carriageway or shoulder, while still within the RoW. 7 To ensure disturbance is minimized to the extent possible, contractors will be required to expedite works in front of businesses, provide pedestrian planks across trenches, manage traffic flows, conduct works at night, etc. 8 The full closure of roads is expected to be minimal under the project, and based on preliminary design, it is estimated that 23 shops in DNI area experience closure. Full closure is limited to DNI zones, where night works will also be considered to limit impacts. If closed, full closure is not expected to exceed 1-4 days.

4 were identified and interviewed in the DNI service area. The final alignments and impacts will be known in the detailed design of DNI area. DNI Area DNI Package VII (DNI A,B,C, G,H,I, J Table 2: Proposed DNI Works and Potential Impacts Size and length Estimated Road widths Level of period of access disturbance disruption to (low, businesses medium, DI pipe will be 150 to 300 mm 1-4 days 3-10 m Low high) and HDPE pipe will be 75 to 110 mm ad the total length 210 KM dia = diameter, DNI = Distribution Network Improvement, km = kilometer, m = meter, mm = millimeter. 8. The following mitigation measures are proposed in the EMP to avoid and/or reduce the impacts to businesses during linear pipe works: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Provide at least one to two weeks prior advance notice to the community along the stretch and conduct awareness campaigns in coordination with contractor, DSC, and community participation consultant. Distribute project information. Maintain access by providing planks and leaving spaces for businesses and residents. Manage traffic flows in accordance with the traffic management plan prepared by the contractor, in coordination with local authorities and communities, and conduct works at night where possible. Limit the amount of time when trenches are open, and complete works quickly where lots of businesses are located. Avoid full street closure to the highest extent possible. Provide employment opportunity to the affected people. Place KUKL phone hotline in visible areas. Make community fully aware of grievance mechanism and provide contact information of PID and KUKL branch offices. Contractors will assist vendors and hawkers in shifting to alternative location and returning back after work completion. 9. Table 3 summarizes the occupants within selected proposed alignments of the DNI service area. Based on preliminary design, the technical team conducted a census survey in the DNI service area. The survey found out that the following businesses and vendors in DNI service area will experience full closure, thus affecting their business activities and requiring compensation.

5 Table 3: Types and number of potential affected businesses (DNI 7) S.N. Nature of Affected Business Number of Affected Income range Business 1 General Store 10 NRs 200 2000/day 2 Small hotels/restaurants 3 NRs 450 500/day 3 Grocery 3 NRs 650 700/day 4 Meat shop 2 NRs 500 700/day 5 Beauty parlour 2 NRs 400 800/day 6 Tailoring 1 NRs 600/day 7 Tea Shop 1 NRs 300/day 8 Cold store 1 NRs 150/day Total 23 10. The survey, based on preliminary design, identified 23 businesses in the DNI service area that will likely be impacted during the pipe lying period. After completion of the detailed design of DNI service area, DSC Safeguard Specialist will update the RP and submit to ADB for approval. All compensation will be paid by PID before the commencement of any civil work. In the proposed DNI service area, average daily income of potentially affected shops, after deducting rent, is NRs 606.50/day (or approximately USD 6.14/day). 9 During RP updating, final assessment on the impact of affected people will be finalized and costed. This will include the possible impacts that may occur to the daily workers in the affected business places, if any. III. SOCIO ECONOMIC INFORMATION AND PROFILE A. Socioeconomic Profile of Kathmandu Valley 11. The Kathmandu Valley includes the three districts of Kathmandu, Lalitpur, and Bhaktapur. These include one metropolitan city, one sub-metropolitan, and three municipalities of KUKL service area. Kathmandu Metropolitan area has the highest population and number of households, followed by Lalitpur sub-metropolitan, Madhyapurthimi, Kirtipur, and Bhaktapur municipalities as given in the Table 4. Metro/Sub-metro/ Municipality and VDCs covered Table 4: Household Profile in Kathmandu Valley Population Total Male Female Total household s Average size of household s Literac y rate Kathmandu Metro 511,841 463,612 975,453 254,292 3.8 88.52 Kirtipur Municipality 36,476 29,126 65,602 19,441 3.4 86.8 Lalitpur Sub- Metro 113,781 107,021 220,802 54,581 4.0 87.37 Bhaktapur Municipality 41,081 40,667 81,748 17,693 4.6 81.21 Madhyapur Thimi Municipality 42,723 40,313 83,036 20,302 4.1 83.84 Total 745,902 680,739 1,426,641 366,309 3.9 VDC = Village Development Council. Source: Compiled from Census 2011, Central Bureau of Statistics. 12. The Sub Project Area The subproject area is located in the northern part of Kathmandu metropolitan city. The boundary of DNI service area is Dhobi khola opposite side of Om Hospital inside the Ring Road up to older bridge (Bhatke ko pul) through strait road backside Bhatbhateni, Police Head Quarter, Raj Darbar and Amrit Science Campus in South, Sorakhutte 9 The exchange rate used is $1.00 = NRs 98.72

6 to Bishnumati Khola bridge in West. From Sorakhutte Bishnumati Khola bridge to Ring Road back side of Gongabu Buspark in North and inside of Ring Road from Gongabu Buspark to Dhobi Khola this side of Om Hospital in East. The major settlement names are Baluwatar, Gairidhara, Lazimpat; Basundhara; Handigoan, Naxal; Lainchaur, Golkhapakha, Mehpi, Nayabazar; Samakhusi, Nayabasti, Kantimarg; Ranibari, Chandol. Dhumbarahi and Maharjgunj, etc. 13. Social classification. According to a 2011 census, the majority of the people living in the valley are Hindus (80%), followed by Buddhists (15%). The percentage of other religions in the valley is minimal. The households are divided into different ethnic groups (i.e. Newar, Brahmin, Chettri, Tamang, and Magar). These ethnic groups are not at the same level of socioeconomic development. In the Kathmandu Valley, Newar is considered an advanced indigenous people group. This group comprises about 40% of the valley population; followed by Brahmin (17%), Chhetri (20%), Tamang (7%), and Magar (3%). 14. Age. The economically active age group between 15 and 59 years constitutes about 71% of the valley population. The other main age group is between 0 and 14 years. Only about 7% of the population are over 60 years old. There are no significant differences in the percentage of age distribution in KUKL service areas. 15. Health. The number of health facilities owned by the government or provided by nongovernmental organizations (NGOs) and the private sector is relatively better in Kathmandu than in other districts. More health institutions are available in Kathmandu than in Lalitpur and Bhaktapur. However, the population served by the number of health institutions (hospital, PHCC/HC, HP, SHP, PHC outreach clinic, EPI clinic, NGO/INGO and FCHV) in Kathmandu is less (ratio is 1:951) than Lalitpur (1:739) and Bhaktapur (1:703). It shows that the number of health institutions is low in comparison to the size of the population in Kathmandu. 16. Education. The Kathmandu Valley has long been considered the centre of higher education in Nepal. In 2011, there were 6,783 primary to secondary school level and 438 higher secondary to college level education institutions. The number of students enrolled during the period at the high school and higher education levels in Kathmandu Valley were 1,276,318 and 582,786 respectively (s-cbs-2011and District &VDC profile of Nepal 2014/15). 17. Employment. The economy of the Kathmandu Valley is based on trade, commerce, and manufacturing industries like carpets and garments. Other economic sectors include foreign employment, agriculture, education, transport, hotels, and restaurants. Tourism is also a key component of the valley s economy. However, in the rural areas, the economy is still based on agriculture. 18. Economically active population. About 78% of the total population in the valley aged 15 and above are economically active (Census 2011). Majority of the population in the Kathmandu Valley are engaged in agriculture. The other major industries include manufacturing (24%), trade (42.6%), service (28.6%), and others (4.7%) (source-nlss statistical report vol- 2.2/2011). 19. Poverty. According to the 2001 census and the Nepal Human Development Report 2004, the poverty status of the Kathmandu Valley is lower than the national level. Table 5 indicates the human development index in the Kathmandu Valley compared with the national values.

7 Districts Table 5: Kathmandu Valley Development Indicators Human Development Human Poverty Index (HDI) Index (HPI) Gender-related Development Index (GDI) All Nepal 0.458 31.12 0.534 Kathmandu 0.666 22.45 0.635 * Lalitpur 0.640 19.18 0.569 * Bhaktapur 0.618 19.43 0.578 * GDI = Gender-related Development Index, HDI = Human Development Index, HPI = Human Poverty Index. Source: Census 2011, Nepal Human Development Report by UNDP 2014.*HDR/UNDP2004. 20. Slums and squatter settlements. The rapid population growth has created a number of slums and squatter settlements in the Kathmandu Valley. Table 6 summarizes the findings of a survey conducted by LICSU, KUKL in 2008. There were 39 squatter settlements and 137 slums in the Kathmandu Valley, where a population of 40,237 live in 8,846 households. Of these, 22% had no access to piped water supply and none had adequate sanitation. Table 6: Slums and Squatter Settlements in Kathmandu Valley Type of residence No. of households Total population Average household size Slums Bhaktapur Municipality 754 3,274 4.34 32 Madhyapur Thimi 382 1,981 5.19 85 Municipality Lalitpur Sub - Metropolitan 391 1,866 4.77 62 Kathmandu Metropolitan 3,784 16,575 4.38 58 Kirtipur Municipality 1,674 7,767 4.64 64 Squatters Kathmandu Metropolitan 1,861 8,774 4.71 95 Percentage of households without piped water supply Total 8,846 40,237 4.5 21.98 Source: Mapping of Slums, Squatters, and Stand Posts in Kathmandu Valley updated by LICSU, KUKL, June 2008, AVIYAAN Consulting (P) Ltd. 21. Vulnerability Status The vulnerability assessment was carried out during the survey. It was observed that none of the households are vulnerable in terms of income, disability, female headed, ethnic minority and old age. B. Gender Status and Considerations 22. The project will provide universal connections, including for poor and vulnerable households, including female-headed households. Employment will also be granted to females, with equal pay for men and women. In addition to the measures provided for addressing the gender concerns of the affected households, the resettlement plan will be implemented in consonance with the gender equity and social inclusion (GESI) plan for the project. 23. Women Headed Households According to the 2011 census, about 25.73% of households are female-headed. In the urban areas, it was a little bit more than the country as a whole (i.e. 18.14% in 2011). The survey in the DNI area indicated that about 28% were femaleheaded households; of this figure, about 13% were widows.

8 24. Literacy There is still some difference in the literacy rate between male and female. It was found that about 71% of females were literate in comparison to 84% of the male population of the project area. 25. Economic Activity In the study area, about 24.48% of the women are housewife Only 20% of female household members are involved in income earning activities compared to 51% of the male members. They are involved particularly in the service sector, trade and business, and labor inside and outside the country. It has been reported that in addition to the economic activities outside the home, women are extensively involved in household activities like cooking, cleaning, washing clothes, child care, care of elderly, and others. 26. Decision Making: The respondents were also asked about women s involvement in household decision making pertaining to matters like finance, education, health care, purchase of assets, day to day household matters, social function, and others. It was found that women were involved in the decision making of almost all household matters. 27. Ownership: In most of the developing countries, family land and household assets have been owned by male population. In some cases, both male and female own land and assets through inheritance. However, in recent years, land ownership of women has increased in Nepal due to the government policy of 20% rebate/concession on land registration fees while purchasing land. Almost half of the households women in the survey own assets like land, houses, and other structures. Majority of them also keep money separately in the bank or elsewhere. 28. Participation: The participation of women in social, political, religious, and community gatherings in Nepal has increased in recent years. During the survey, respondents were asked about gender participation in community meetings. The percentage of female in social/religious gatherings was slightly more than the men; whereas tmen s participation in community gatherings is much higher than females. However, around 65% of male and 69% of female together participates in social/religious work. IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION A. Public Consultation 29. An extensive consultation program with key stakeholders was carried out, in line with the requirements pertaining to environment and social considerations of ADB. The tools used for consultations were stakeholder meetings, interviews, structured questionnaires, and focus group discussions. These consultations provided inputs for identification of the felt needs of the communities and the relevant stakeholders. The public, business owners, and shopkeepers were informed about the possibility of disruption to the business. A number of household surveys and community consultations have been undertaken in DNI area as a part of the preparation of the report. The public was informed from time to time about the construction of reservoirs, water transmission lines, distribution of pipelines, and land acquisition, together with the project s resettlement, rehabilitation, and compensation modalities. 30. During the visits, potential areas that could experience partial/temporary disruption of roads/galli were identified; census income survey of shops and vendors were also conducted for assessing the average daily income. Consultations were held during the time of RP preparation in DNI service area. Vendors, and business owners were informed about the possibility of

9 disruption to the business. Table below 7 shows the date, location and detail of public consultations. Date No. of Participants 1 Dec. Male:4 2014 Female:5 3 Dec. 2014 4 Dec. 2014 5 Dec. 2014 Male:4 Female:4 Male:6 Female:2 Male:4 Female:3 Table 7 Summary of Public Consultations Location Participants Topic/issues attended discussed Samakhusi Local vendors, Local employment, teachers, local GRM Compensation people, for business disruption, quality of works, Basundhara Vendors, users Quality of Works, committee local Entitlements matrix, people construction time Sorakhuttee Lazimpat Local, vendors, local people Hawkers vendors, people local Wage discrimination, Compensation package, and common construction time Entitlement matrix, compensation providing authority construction time and GRM Information disseminated Priority to local in construction work, compensation will be provided based on entitlements and maintain quality Quality of works will be maintained and disseminate project entitlements, less traffic time No discrimination in wage rate, construction time will be in less traffic period and complete rehabilitation work immediately Discussed entitlement matrix, KUKL authority for compensation construction time will be in less traffic period and complete rehabilitation work immediately B. Information Disclosure 31. To provide for more transparency in planning and for further active involvement of affected people and other stakeholders, project information was disseminated through disclosure of the translated versions of the resettlement planning documents. The information was made available in public places, including the offices of PID, KUKL s main office and branch offices, contractor site office, and Ward Office of Kathmandu Metropolitan city. A copy of the final/updated RP will be disclosed on the ADB and project related websites, will be translated in local language, and will also be available from PID upon request. C. Continued Consultation and Participation 32. The PID has extended and expanded the consultation and disclosure process during the detailed design stage and will be continued during construction period of the project. CAPC has been recruited to ensure ongoing consultations and public awareness during project implementation. This has been coordinated with the PID, DSC, and contractors to ensure that communities are made fully aware of project activities in all stages of construction. The affected vendors and business will be made aware of their entitlement and compensation, if any, by the PID/DSC safeguards experts, in coordination with CAPC. A community awareness and participation plan was also prepared for the project and implementationsupport provided by CAPC, in coordination with the PID and DSC safeguards expert. Community groups such as TLO and vendor associations have been consulted and made aware of the civil works and project activities prior to construction.

10 V. GRIEVANCE REDRESS MECHANISM 33. A grievance redress mechanism (GRM) has been established (safeguard officer from PID, safeguard expert from DSC, CAPC, contractor and TLO member) in PID to receive, evaluate, and facilitate the resolution of affected people s concerns, complaints, and grievances about the social and environmental performance at the level of the project. A Community Issue Resolution Team (CIRT) is also established to address the grievances immediately in the field level. The Safeguard officer from PID has been assigned as coordinator for grievance handling. The name and contact number for GRM team has been mentioned in brochures and leaflets. The GRM aims to provide a trusted way to voice and resolve concerns linked to the project, and to be an effective way to address affected people s concerns 10. The GRM for the project is outlined below, and consists of four levels with time-bound schedules and specific persons to address grievances. (i.) (ii.) First level of GRM. The first level and most accessible and immediate contact for the fastest resolution of grievances by CIRT (contractors, CAPC, TLO member and DSC supervisor) on site. Prior to construction of any works, CAPC, DSC, and contractors are to hold local community meetings to notify the local residents and businesses of the temporary disturbance, and to inform them of the project. If a local area committee (tole committee) exists in the area, they should also be informed and made aware of the project. If any complaints arise, the contractors, DSC, and PID can immediately resolve the complaint on site, and if necessary, with the assistance of the local tole committee. The PID office can also be involved in grievance redress at this stage. The Contractor and CAPC office phone number will be posted in public areas within the project area and construction sites. Any person with a grievance related to the project works can contact the project to file a complaint. The CAPC consultants will document the complaint, and immediately address and resolve the issue with the contractor within one to two days, if the complaint remains unresolved at the field level. The assistance of the DSC safeguards specialists (the environmental specialist or social safeguards specialist) to help resolve the issue. The CAPC consultants will notify the PID safeguards unit that a complaint was received, and whether it was resolved. The CAPC will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved. Second level of GRM. Should the grievance remain unresolved, the CAPC consultants will forward the complaint to the PID safeguards unit. The person filing the grievance will be notified by the CAPC consultants that the grievance was forwarded to the PID safeguards unit. The PID safeguard unit Chief will address the grievance. Grievances will be resolved through continuous interactions with affected persons, and the PID will answer queries and resolve grievances regarding various issues, including environmental, social, or livelihood impacts. Corrective measures will be undertaken at the field level by the PID safeguards staff within seven days. The relevant safeguards unit staff will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved. 10 To date all issues has been resoved at the first level of GRM and managed by CAPC staff. Detail records of complaints received at this level are kept by the CAPC in the project data base.

11 (iii.) (iv.) Third level of GRM. Should the grievance remain unresolved, the PID project director will activate the third level of the GRM by referring the issue (with written documentation) to the local Grievance Redress Committee (GRC) of the KUKL, who will, based on review of the grievances, address them in consultation with the PID safeguards unit, project director, and affected persons. The local GRC will consist of members of the PID, affected persons, and local area committee, among others determined to provide impartial, balanced views on any issues. The GRC should consist of around five persons. A hearing will be called with the GRC, if necessary, where the affected person can present his or her concerns/issues. The process will promote conflict resolution through mediation. The local GRC will meet as necessary when there are grievances to be addressed. The local GRC will suggest corrective measures at the field level and assign clear responsibilities for implementing its decision within 15 days. The functions of the local GRC are as follows: (i) to provide support to affected persons on problems arising from environmental or social disruption, asset acquisition (if necessary), and eligibility for entitlements, compensation and assistance; (ii) to record grievances of affected persons, categorize and prioritize them, and provide solutions within 15 days; and (iii) to report to the aggrieved parties developments regarding their grievances and decisions of the GRC. The PID safeguards officers will be responsible for processing and placing all papers before the GRC, recording decisions, issuing minutes of the meetings, and taking follow-up action to see that formal orders are issued and the decisions carried out. Fourth level of GRM. In the event that a grievance is not addressed by the contractor, DSC, branch office, PID, or GRC, the affected person can seek legal redress of the grievance in the appropriate courts, the fourth level of the GRM, which is the formal legal court system. The grievance redress mechanism and procedure is depicted in Figure 2.

12 Figure 2: Grievance Redress Mechanism (GRM) Affected Person 1st Level Grievances Field Level: (CIRT) DSC Contractor, CAPC, 1-2 Days Grievance redressed Not Redressed 2nd Level Grievances PID Safeguards Unit 7 Days Grievance redressed Not Redressed 3rd Level Grievances Grievance Redress Committee 15 Days Grievance redressed Not Redressed 4th Level Grievances Higher Authority DSC= design and supervision consultant, GRM= grievance redress mechanism, PID= project implementation directorate.

13 VI. POLICY AND LEGAL FRAMEWORK 34. ADB Safeguards Policy Statement (2009). The three important elements of the ADB s Safeguards Policy Statement (SPS) are: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. In addition, the absence of legal title to land should not be a bar to compensation. ADB SPS requires compensation prior to actual income loss. In cases where the contractors know which streets will be closed and for how long, compensation can be paid out to the businesses prior to construction. 35. Government of Nepal Laws. As there is no land acquisition, the government s policies, (i.e The Land Acquisition Act, 2034 of 1977) are not relevant for this project. The Government of Nepal has no policy to compensate for temporary impacts during construction. VII. ENTITLEMENTS, ASSISTANCE, AND BENEFITS A. Eligibility 36. Compensation eligibility is limited by a cut-off date as set for this project on the day of the beginning of the income survey (Appendix 5) prior to commencement of civil works. Once a contractor confirms that a road is likely to be fully closed (no access to traffic), the DSC social safeguards specialist will conduct an income survey of businesses along the relevant sections. 11 The DSC social safeguards specialist may recruit enumerators to assist in this activity. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there will be the option of using the actual income based on survey, followed by a verification of the income data based on comparable incomes in the project area. 37. Hawkers or business owners who settle in the affected areas after the cut-off date will not be eligible for compensation. They will, however, be given sufficient advance notice (at least one week), and will be requested to vacate premises and dismantle affected structures prior to project implementation. Contractors will provide shifting assistance to any vendors needing help. B. Entitlements 38. The entitlement matrix (Table 8) summarizes the main types of losses and the corresponding entitlements in accordance with the ADB policies. In addition to temporary impacts, the entitlement matrix also covers damages to structures during construction. The business experiencing full closure during the civil works are entitled to receive compensation. 11 Compensation is only applicable to businesses experiencing disturbance on fully closed roads.

14 Table 8: Entitlement Matrix Type of Loss Entitlement Unit Description of Entitlement and Implementation Procedures 1.Damages caused during construction 1.1 Government and private structures Titleholder Tenant Informal settlers on government land 2. Community facilities and resources 2.1 Loss of Local community community structures 2.2 Loss of drinking water and sanitation Where damages occur to private, community, or government property as a result of construction works, the cost of restoring these to at least their original condition will be the responsibility of the contractor as part of their contract. Restoration of affected community buildings and structures to at least previous condition, or replacement in areas identified in consultation with affected communities and relevant authorities will be carried out. Residents and businesses There will be immediate replacement and restoration of the water points. Remarks Extreme care should be taken by the contractors to avoid damaging any properties during construction. Compensation for the losses will be borne by the contractor. Extreme care should be taken by the contractors to avoid damaging any properties during construction. Compensation for the losses will be borne by the contractor. Community structures include service roads, inner roads, temples, footpaths/trails, culverts, and water points. The time gap between the construction of new system and transfer from the old system should be minimized. Alternative sources of water should be made available during the construction period. Responsibility Contractor/PID/DSC/CIRT Contractor/PID/DSC Contractor/PID/DSC/CIRT

15 Type of Loss Entitlement Unit Description of Entitlement and Implementation Procedures 3. Temporary loss of income 3.1 Temporary loss of business 3.2 Vulnerable persons 4. Structures 4.1 Temporary loss of structures in right of way Titleholder Licensed and nonlicensed vendors, and titled and non-titled households/tenants Daily worker of the affected business Female-headed, and below poverty line households, the annual poverty line data is NRs. 19,261 per capita/year or NRs 93,994 per household/year: NLSS Survey, 2011 Temporary or semipermanent structures or stalls that belong to licensed and non-licensed vendors, and titled and non-titled households Businesses are entitled to compensation for each day of disturbance on fully closed roads. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there is the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. Mobile hawkers and vendors will be assisted by contractors in moving to alternative locations during the period of construction. Vulnerable persons will be entitled to preferential employment (unskilled labor) under the project. Affected persons will: (i) receive advanced notice of at least 2 weeks; (ii) cash or in kind compensation for any damaged structures occurred during relocation (iii) have rights to salvage materials from structure; (iv) (iii)receive assistance in shifting to nearby location; and (v) (iv) be allowed to return to original site after completion of construction works. DSC = Design and Supervision Consultants, PID = Project Implementation Directorate Remarks An income survey prior to construction will serve as the cut-off date. Vulnerable persons will be identified during income survey, with the list given to PID and contractor. There will be temporary shifting for 5-7 days during period of construction. DSC CAPC and contractor will identify alternative site and help in shifting. Responsibility DSC/PID/CIRT DSC/PID/contractor Contractor/ DSC/PID/CIRT

16 C. RP Updating, Implementation and Contract Awards 39. Upon the completion of final detailed engineering design of each relevant project section by DSC engineers, the following activities will be conducted for RP finalization and implementation under the responsibility, coordination and supervision of PID social safeguard officer, supported by DSC resettlement specialist and CAPC staff: (i) (ii) (iii) (iv) (v) (vi) (vii) establish project cut-off date, and notification for areas/sections of the subproject where the final design is completed and the dates for civil works activities in the area; conduct consultations/ project information dissemination with the affected communities 12 ; conduct census to the final affected peoples (APs) and final business survey to determine the compensation unit rate of loss income to be received by the affected vendors/shop keepers 13 ; preparation of photo identity cards and issuance of ID cards to all eligible containing details, types of loss, and entitlement as early as possible to avoid encroachers and squatters after cutoff date. These identity cards will be verified by the PID safeguard team, DSC specialist, CAPC staff and the DPs with signatures of all involved; update and submitt the final RP containing the final impacts, final APs, and entitled compensation/ assistance to the identified APs in the sections where the final engineering design is completed and ready for construction to ADB for review and approval prior implementation; upon the completion of the ADB approved RP implementation, PID safeguards specialist will report to ADB on the completion of the RP implementation in the affected section(s) and issue notice to proceed (NTP) to the contractor to start working in the affected area; submit regular semiannual safeguards monitoring report to ADB for review and disclosure, which includes the RP updating and implementation progress; GRM records, if any, and ADB policy compliance during project implementation. 40. Award of contracts for civil works of this subproject will be based on the following conditions 14 : (i) (ii) upon completion of final RP with identified impacts based on final design for the entire subproject; or upon received confirmation report (due diligence report) that no involuntary resettlement (IR) impacts are identified in particular/relevant sections based on the final detailed design of that sections. Under this condition, the contractor will be given contract award with sectional release of the works. This means that the civil works will be limited to the sections that no IR impacts are identified. For sections where IR impacts are identified, the civil works will have to wait until the final RP for sections with IR impacts is prepared, endorsed by ADB, and 12 For sections that are confirmed will not have any impacts on IR (land/income), due diligence report will be preared and will be included in the semiannual safeguards monitoring report 13 One updated RP can consist of several DNI sections where the final designs are already completed. More than one final/updated RPs maybe prepared for this subproject 14 The appropriate option will be chosen based on the gravity of the IR issues of the subproject and the engineering design status.

17 implemented, and confirmed by the PID by the issuance of the NTP to the contractor. D. Determination of Compensation 41. Income. Businesses will be compensated for lost income on fully closed streets where customer access to shops is disrupted. 15 Once a contractor confirms a road is likely to be fully closed (with disruption to customer access), the DSC social safeguards specialist will conduct an income survey of businesses along the relevant sections. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there is the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. A summary table of resettlement procedures is presented in Appendix 6. 42. Compensation procedures. Paying compensation to the affected persons will involve the following steps: (i) (ii) (iii) (iv) (v) (vi) Step 1. Conduct public awareness and information dissemination prior to construction works. This is to be done by the community awareness and participation consultants. Step 2. In collaboration with the contractor, the DSC will identify the roads which will be fully closed and estimated period of closure. Two types of disturbance are anticipated from full closure of roads: (i) partial disturbance, where there is no vehicular access, but pedestrian access is maintained; or (ii) full disturbance, where there is no vehicular and no pedestrian access. Step 3. The DSC social specialist will then (i) conduct an income survey 16 of shops along sections of road closure identified for full closure; (ii) update the RP (identifying income and potential loss based on actual income losses); and (iii) send the updated RP to ADB for review and approval after detailed designs are complete. Step 4. After ADB approval of the revised RP, the DSC safeguard specialist will distribute identity cards with compensation amount to the affected persons. Step 5. Affected persons can then collect payment at PID office or on site, based on PID discretion. Step 6. PID will issue checks to affected persons based on survey record and identity card prior to construction works (if feasible). All payments will be recorded for accounting purposes with signature of affected person to verify 15 Compensation is only applicable to fully closed roads where customer access is disrupted leading to income loss. To the extent possible, contractors will identify these types of roads prior to construction. However, if during construction, a road not previously identified for full closure is unexpectedly required to be fully closed, inhibiting customer access, the contractor is to immediately notify the DSC social safeguard specialist and PID so that a rapid income survey can be conducted and compensation paid for period of disruption. 16 Compensation is based on lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there is the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. Compensation for daily workers of the affected business, if any, will also be included in the final computation in the updated RP.

18 payment made. The project director will closely monitor payments with PID accounting office. 43. Vendor Assistance Vendors requiring temporary shifting during construction period will be notified in advance and allowed to salvage all materials for temporary shifting to alternative location. They will be allowed to return to the original location after construction is declared complete. Vendor assistance will involve the following steps: (i) (ii) (iii) (iv) (v) step 1 - identification of impacted vendors based on detailed design by DSC social specialist and PID safeguards unit in coordination with contractor; step 2 - notification of vendors at least one to two weeks in advance; consultation with local vendor associations if any; step 3 - identification of alternative location nearby for affected vendors to continue their business; step 4 - assistance by contractor to shift to new location. Any damaged on affected mobile assets due to the relocation will be provided with additional assistance (cash or in kind); and step 5 - assistance by contractor to return to original location after construction works are completed. 44. Project Benefits The project will support the delivery of much-needed water to Kathmandu and its surroundings. The project will support KUKL in expanding water services in its service area, where affected businesses are among the beneficiaries. Moreover, the project will employ local people during implementation. VIII. INCOME RESTORATION AND REHABILITATION 45. Incomes of affected persons will be compensated based on the tax record or the actual income based on survey, as detailed in the entitlement matrix. Preferential employment will be offered to local people, with preference to affected persons. Any damage on movable assets of the affected vendors during relocation will be provided with additional assistance (cash or in kind) by the contractor(s). IX. RESETTLEMENT BUDGET AND FINANCING PLAN 46. The resettlement cost for the proposed project (Table 9) includes eligible compensation for temporary impacts on income. The government financing has provided funds to support all compensation for lost income. The total estimated resettlement cost for the project is NRs 63,078 (USD 638.95) The Implementation Agency (KUKL-PID) has allocated sufficient budget and human resources to implement the RP. 47. The cost items are outlined below: (i) (ii) For linear works, temporary loss of income to shops and businesses due to disturbance caused by construction for roads fully closed. Businesses are entitled to income compensation on fully closed roads where customer access is inhibited. Vulnerable persons entitled to preferential treatment in project-related employment. 17 17 A list of names of vulnerable persons will be submitted by the DSC to PID and contractors.

19 48. The compensation budget is estimated impact identified based on preliminary design. During detailed design stage, the number of days of full closure will be more clearly known and actual impact could be identified. Once the detailed design is completed, the DSC Social Safeguard Specialist will conduct final RP survey and update RP based on final design. Construction on the closed roads will not commence until compensation is fully provided. It is estimated that a total of 23 shops in the DNI area will be potentially impacted. The total estimated resettlement budget is NRs 63,078 (USD 638.95). Table 9 provides details of the costs. Table 9: Summary of Compensation Costs 18 Item Estimated number Daily Estimated number NRs USD 22 of days of compensation 19 Income (NRs) 20 of shops in DNI service area 21 Assistance for 4 income loss Income type I 150 450 8 14,400 145 Income type II 500 850 13 44,200 445.1 Income type III 900 2 4,000 40.3 2000 TOTAL 23 62,600 630.4 DNI = Distribution Network Improvement, USD = United States Dollars. X. INSTITUTIONAL ARRANGEMENTS 49. The Ministry of Urban Development (MOUD) will be the executing agency responsible for overall strategic planning, guidance, and management of the project, and for ensuring compliance with loan covenants. As part of institutional reforms under the ongoing loans, three water and wastewater organizations were created: (i) Kathmandu Valley Water Supply Management Board (KVWSMB), the asset owner; (ii) KUKL, the asset operator and service provider; and (iii) Water Supply Tariff Fixation Commission, the regulator. KVWSMB will continue to discharge its responsibilities as asset owner of water supply and wastewater systems as well as monitoring the performance of KUKL, as provided in the lease and license agreement between KVWSMB and KUKL. PID will be the implementing agency, and responsible for: (i) project planning, implementation, monitoring, and supervision; (ii) reporting to MOUD, and ADB; and (iii) coordination of all activities in the project. The experience of PID, KUKL in implementing subproject 2 of the Melamchi Water Supply Project, Loan 2776, and Loan 3000 will be useful in taking advance action for the Project. For safeguards, the PID has 18 Other management cost associated with the implementation of resettlement plan, GRM and safeguard related issue is included in the original loan of KVWSIP. 19 Businesses are entitled to income compensation for each day of disturbance on fully closed roads. For budgeting purposes, it is estimated that streets will be closed for 4 days. Among the identified business no one of them are vulnerable. During implementation, income compensation is based on actual losses based on tax record or, in its absence, comparable rates from registered businesses of the same type with tax records. For shops not qualifying under these categories (hawkers, vendors, etc.), there is the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. 20 Estimated daily income is based on the rapid business survey conducted in the DNI areas in December, 2014. Compensation is based on actual income loss. The figures presented in Table 9 are for budget estimation purposes only and are purposefully conservative. 21 The DNI covers an area of about 3,139 ha, it is estimated t 23 shops will effected due to fully closed roads and 9orequired compensation and esimated for budgeting purposes. 22 The exchange rate used is $1.00 = NRs 99.30

20 an already established safeguards unit staffed with environmental, social, and legal specialists. The institutional roles and responsibilities are detailed in Table 10. Table 10: Institutional Roles and Responsibilities S.No. Activity Responsibility Project Initiation Stage 1 ADB website disclosure ADB 2 Disclosure of summary resettlement plan in local PID/DSC language 3 Finalization of BDS and DNI alignments PID/DSC 4 Update resettlement plan based on detailed design PID/DSC/ADB and send to ADB for review and approval prior to contract award. 5 Meetings at community/household level with displaced persons Contractor/DSC/community participation consultant Resettlement Plan Implementation 6 Contractor to identify roads for full closure Contractor 7 Detailed income survey on streets identified for full DSC closure 8 Calculation of compensation and entitlements PID/DSC 9 Award of checks for compensation PID 10 Contractor to begin works PID/Contractor 11 Grievances redressed PID/DSC/CAPC 12 Internal monitoring PID ADB = Asian Development Bank, BDS = Bulk Distribution System, DNI = Distribution Network Improvement, DSC = Design and Supervision Consultants, PID = Project Implementation Directorate. XI. IMPLEMENTATION SCHEDULE 50. Detailed design of DNI and BDS package is ongoing and reservoir is almost complete. Construction is scheduled to commence in Q1 2016 and completed by end of 2019. The RP is to be updated after the completion of detailed design, and reviewed and approved by ADB prior to contract award. Civil works activity in the areas where IR impacts are identified should start only after the completion of final RP implementation/compensation provided, as confirmed by the PID/DSC safeguards team. The implementation schedule is shown in Figure 3 Design of DNI package RP updating, submission to ADB and contract award Implementation of RP Construction of DNI 7 Implementation of GESI/CAPP Figure 3 Resettlement Plan Implementation Schedule 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

21 XII. MONITORING AND REPORTING 51. The DSC is to submit quarterly reports to PID, while the PID will submit semi-annual monitoring reports to ADB. If any unanticipated environmental and/or social risks and impacts arise during construction, implementation, or operation of the project that were not considered in the resettlement plan, the government is to promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan. The PID will report any actual or potential breach of compliance with the measures and requirements set forth in the RP promptly after becoming aware of the breach. The internal monitoring by PID will include: (i) administrative monitoring to ensure that all compensation as per the resettlement plan is paid, implementation is on schedule, and (ii) problems are dealt with on a timely basis. Sample ID cards, monitoring indicators, business survey, RP procedures, and outline of semiannual report are given in Annexes of this document. 52. Monitoring will also include the following: (i) (ii) (iii) (iv) consultations with affected persons; issues raised through the GRM; status of compensation amounts and all assistance; and progress of the resettlement.

22 Annex 1 Annex 1: Photographs Photo 1 Enumerator interviewing with hawker Photo 2 Narrow streets of DNI Area Photo 3 Vendors at streets Photo 4 Interviewing with shop owner

Annex 2: Sample Identity (ID) Card for Entitled Persons Annex 2 23

24 Annex 3 Annex 3: Sample Monitoring Indicators S. Resettlement Plan Activities Progress Remarks N. A. Pre-construction activities and resettlement plan activities 1 Assessment of resettlement impacts due to changes in project design (if required) 2 Preparation/ updating of resettlement plan based on changes in project design 3 Approval of updated resettlement plan from ADB 4 Disclosure of updated resettlement plan 5 Establishment of Grievance Redress Committee 6 Verification of displaced persons census list; assessment on compensation and assistance, and readjustment B. Resettlement plan implementation 1 Payment of compensation to affected persons 2 Disbursement of special assistance to vulnerable groups 3 Reinstallation of public utilities 4 Records of grievance redress 5 Temporary relocation of hawkers and vendors C. Social measures during construction as per contract provisions 1 Prohibition of employment or use of children as labor 2 Prohibition of forced or compulsory labor 3 Ensure equal pay for equal work to both men and women 4 Implementation of all statutory provisions on labor like health, safety, welfare, sanitation, and working conditions 5 Maintenance of employment records of workers ADB = Asian Development Bank, PID = Project Implementation Directorate.

Annex 4 25 Annex 4: Sample Questionnaire Checklist for Updating RP Business/Shops Survey Part A: Identification Package No.: DNI : Name of AP Surveyed by Phone No. Nature of business Mobile/permanent Name of Road Name of Shop Name of junction Type of road Minor/major Date of Survey Data edited by General store Grocery Clothes/ Small Medicine Mobile Books/ Cyber Garment hotels/restaurant shops statuaries cafe s 01 02 03 04 05 06 07 08 Sweets Utensils Construction Tailoring Vehicle News Vegetables fruits Materialsl repair paperseller 09 10 11 12 13 14 15 16 Meats(chicken/fish /Buff) bathroom fittings Ornaments Electrical goods Shoes bangles Others (specify) 17 18 19 20 21 22 23 Part: B Business Is the business operator the owner or a tenant Owner? How many people are employed in the business? If the operator is a tenant, how much rent does him /her pay per month? NRs. What is the average profit from the business per day (before payment of rent)? NRs Vulnerability: Should the business operator or hawker be considered as vulnerable? Yes/No Reason for vulnerability (give details of income, physical vulnerability, etc): Gender People having Poverty Minority Other (state) Disability 01 02 03 04 05 Hawkers: Location of hawker: Type of Merchandise (tick) Fruit Vegetables Fish Hot food Books & Clothes Sho Shoe Repair Other(state type) Stationery 01 02 03 04 05 06 07 08 Is the hawker mobile or permanent? Mobile = 1; Permanent = 2 How often does the hawker occupy this site? Every day Most days 1-2 days p/w < 1 day p/w Full day Half day 01 02 03 04 05 06 Does the hawker pay anyone to allow him to use this site? Yes = 1; No = 2 How much does he/she pay per day? Who does he/she pay? What is the hawker s average profit per day (total, before paying for use of the site)?

26 Annex 5 Detailed design Annex 5: Summary Procedures for Resettlement Planning Stage Activity Resources Responsibility The scope of resettlement impact should be limited Detailed designs PID/DSC to small-scale temporary reductions in business prepared by DSC income if customer access is impeded. Towards this, accomplish the following: (i) Identify roads that will experience full closure during construction; (ii) estimate duration of full closure and extent Preconstruc tion of potential impacts and losses; (iii) conduct income survey on roads to be fully closed to identify affected businesses and extent of impacts and compensation amounts; (iv) based on income survey, prepare a list of affected persons and calculate their compensation. This is the basis for the resettlement plan budget; (v) validate and/or update business survey results for income; (vi) screen for vulnerable households; (vii) submit updated resettlement plan(s) to ADB and PID for review, confirmation, and disclosure on ADB and PID website; and (viii) conduct public consultation of resettlement plans and entitlements. Provide advanced notice (at least 1 weeks) to affected persons. Pay compensation to affected persons based on resettlement plan before loss occurs (i.e., before construction begins). Income survey questionnaire Income survey questionnaire/tax records Ensure receipt of payments. PID to record the payments in their own accounts register PID to issue NTP for the contractor(s) Ensure all mitigation measures from IEE (i.e., See IEE Constru providing planks and boards across trenches, etc) ction are incorporated into construction contract documents. Implement all mitigation measures during construction, including required safety and access measures (i.e., planks and boards across trenches). Monitor construction activities and ensure See IEE contractors are implementing all safety and mitigation measures, and maintaining access to businesses. DSC= design and supervision consultant, PID= project implementation directorate. DSC social specialist (with help from hired enumerators) DSC social specialist DSC social specialist DSC social specialist Contractor/DSC PID/DSC PID/DSC PID PID DSC/PID Contractor /DSC PID/DSC

Annex 6: Attendance Sheet Annex 6 27

28 Annex 6

Annex 7 29 Annex 7: OUTLINE OF SOCIAL SAFEGUARDS MONITORING REPORT Following requirements of the ADB Safeguard Policy Statement (2009) and the Operations Manual section on safeguard policy (OM F1), borrowers/clients are required to establish and maintain procedures to monitor the status of implementation of safeguard plans and ensure progress is made toward the desired outcomes. For projects categorized as A or B in Involuntary Resettlement and/or Indigenous People, the Borrowers/clients are required to submit biannual monitoring reports for ADB review. The level of detail and comprehensiveness of a monitoring report is commensurate with the complexity and significance of social safeguards impacts (IR and IP). A safeguard monitoring report may include the following elements: A. Executive Summary. This section provides a concise statement of project scope and impacts, key findings and recommended actions. B. Background of the Report and Project Description. This section provides a general description of the project, including: (i) Background/context of the monitoring report which includes the information on the project, project components, safeguards categorizations, and institutional requirements (ii) Information on physical progress of project activities, scope of monitoring report and requirements, reporting period, including frequency of submission and changes in project scope and adjusted safeguard measures, if applicable (iii) Summary table of identified impacts and the mitigation actions. C. Scope of Impacts. This section outlines the detail scale and scopes of the project s safeguards impacts, vulnerability status of the affected people/communities, entitlements matrix and other rehabilitation measures, as applicable, as described in the approved final RP(s) /IPP(s). D. Compensation and Rehabilitation. This section describes the process and progress of the implementation of the safeguards plan and other required activities as determined in the plan. This includes payment of the affected assets compensation, allowances, loss of incomes, etc. to the entitled persons; provisions of other types of entitlement as described in the matrix and implementation of livelihood rehabilitation activities as determined in the plan. Quantitative as well as qualitative results of the monitoring parameters, as agreed in the plan, should be provided. E. Project disclosure, public participation and consultation. This section describes project disclosure mechanism, public participation and consultations activities during the project implementation as agreed in the plan. This includes, numbers of activities conducted, issues raised during consultation and responses provided by the project team, implementing NGOs, project supervision consultants, contractors, etc. F. Grievance Redress Mechanism (GRM). This section described the implementation of project GRM as design in the approved RP/IPP. This includes evaluations of its effectiveness, procedures, complaints receive, timeliness to resolve issues/ complaints and resources provided to solve the complaints. Special attentions should be given if there are complaints received from the affected people or communities.

30 Annex 7 G. Institutional Arrangement. This section describes the actual implementation or any adjustment made to the institutional arrangement for managing the social safeguards issues in the projects. This includes the establishment of safeguards unit/ team and appointment of staff in the EA/IA; implementation of the GRM and its committee; supervision and coordination between institutions involved in the management and monitoring of safeguards issues, the roles of NGO and women s groups in the monitoring and implementation of the plan, if any. H. Monitoring Results Findings. This section describes the summary and key findings of the monitoring activities. The results are compared against previously established benchmarks and compliance status (e.g., adequacy of IR compensation rates and timeliness of payments, adequacy and timeliness of IR rehabilitation measures including serviced housing sites, house reconstruction, livelihood support measures, and training; budget for implementing EMP, RP, or IPP, timeliness and adequacy of capacity building, etc.). It also compared against the objectives of safeguards or desired outcomes documented (e.g. IR impacts avoided or minimized; livelihood restored or enhanced; IP s identity, human right, livelihood systems and cultural uniqueness fully respected; IP not suffer adverse impacts, environmental impacts avoided or minimized, etc.). For FI projects this includes the effectiveness of the Environmental and Social Management System (ESMS) managed by the FI and its participating institutions. If noncompliance or any major gaps identified, include the recommendation of corrective action plan. I. Follow up Actions, Recommendation and Disclosure. This section describes recommendations and further actions or items to focus on for the remaining monitoring period. It also includes lesson learned for improvement for future safeguards monitoring activities. Disclosure dates of the monitoring report to the affected communities should also be included. A time-bound summary table for required actions should be included. Appendix 1 (i) (ii) Appendix 2 (i) (ii) (iii) List of Affected Persons and Entitlements Summary of RP/IPP with entitlement matrix Copies of AP s certification of payment (signed by the APs) Summary of minutes of meetings during public consultations Summary of complaints received and solution status

Annex 8: Google Map of Project Location Annex 8 31

32 Annex 9 Annex 9: Endorsement of the Safeguards and Due Diligence Documents