Bale Gadula Irrigation Project - Settlement Study Summary

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA MINISTRY OF WATER RESOURCE
J
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FEASIBILITY STUDY AND DETAIL DESIGN OF RALF GADULA IRRIGATION PROJECT
V OLUME - 6 ANNEX - 7 SETTLEMENT STUDY
FEASIBILITY FINAL REPORT
MAY 2010
in association with
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Water Works Design and
Intercontinental Consultants 
Supervision hnlerpnse
and Technocrats
(WWDSE)
PVT.LTD.(ICT)Federal Democratic. Republic of Ethiopia Ministry of Water Resources Feasibil '. Stu< \ and Detail Design of Bale Gadula Irrigation Project
VOL 6-ANNEX 7
Settlement Study
FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
MINISTRY OF WATER RESOURCES
FEASIBILITY STUDY AND DETAIL DESIGN OF
BALE GADULA IRRIGATION PROJECT
DRAFT FEASIBILITY REPORT
VOLUME 6 -ANNEX 7
SETTLEMENT STUDY
MAY 2010
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I mal I eligibility Study ReportFederal Democratic Republic of Ethiopia- Ministry of Water Resources Feasibility Study and DetaiI Design of Bale Gadula Irrigation Project
VOL 6-ANNEX 7
Settlement Study
List of Volumes in the Final Feasibility Report
VOL 1
Executive Summary
VOL 2
Main Report
VOL 3
Annex 1
Meteorological and Hydrological Study
VOL 4
Annex 2
Geological and Geotechnical Investigations
VOL 4
Annex 3
Hydro-geological Study
VOL 5
Annex 4
Soil Survey
VOL 5
Annex 5
Land Evaluation
VOL 6
Annex 6
Socio Economic Study
VOL 6
Annex 7
Settlement Study
VOL 7
Annex 8
Irrigation Agronomy
VOL 7
Annex 9
Farm Mechanisation
VOL 7
Annex 10
Agricultural Marketing
VOL 8
Annex 11
Livestock Study
VOL 9
Annex 12
Environmental Impact Assessment
VOL 9
Annex 13
Watershed Management
VOL 10
Annex 14
Institutional Dev.
VOL 11
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Annex 15
Financial & Economic Analysis
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TABLE OF CONTENTS
LIST OF TABLES............................................................................................................................................... II
ACRONYMS AND ABBREVIATIONS............................................................................................................... Ill
1. INTRODUCTION........................................................................................................................................... 1
1. l Objectives or the Study.......................................................................................................................................................................... 2
1.2.  Methodology......................................................................................................................................................................................... 3
1.2.1. Data Source and Collection............................................................................................................ 3
1.2.2. Survey Methods and Data Collection Instruments..........................................................................3
1.3.  Scope of the study............................................................................................................................................................................... 4
2. LOCAL INSTITUTIONS/ORGANIZATIONS..................................................................................................5
2.1              Formal Local Institutions.......................................................................................................................................... -........... 5
2.2.
Informal/Community Based Organizations.......................................................................................................................... 5
3. COMMUNITY PARTICIPATION IN DEVELOPMENT PROGRAMS............................................................ 7
4. SOCIOECONOMIC IMPACTS OF THE PROPOSED PROJECT.................................................................8
4.1.   Positive Impacts of the Project.......................................................................................................................................................8
4.2.  Adverse Impacts of the Proposed Project................................................................................................................................... 8
4.2.1       Displacement of Households and Population............................................................................ 8
4.2.2. Loss of Social Services and Religious Institutions......................................................................... 9
4.2.3. Spread ofHIV/ADIS...................................................................................................................... 10
4.2.4. Community Disarticulation........................................................................................................... 10
4.2.5. Increased Morbidity..................................................................................................................... 11
4.2.6. Economic Loss and food Insecurity.............................................................................................11
4.2.7. Influence on Indigenous Culture..................................................................................................12
4.2.8. Loss of Grazing Lands.................................................................................................................12
4.2.9 Ecological Imbalance.................................................................................................................... 13
5.
POLICY AND LEGAL ISSUES PERTINENTTO COMPENSATION............................................... 15
5.1.
World Bank Policy on Involuntary Resettlement........................................................................................................ 16
5.2
Compensation Eligibility...................................................................................................................................................................18
5.3
Compensation Standards................................................................................................................................................................. 19
5.3.1 Compensation for Loss of Cultivated Land and Crops................................................................. 19
5.3.2 Compensation for Residential Land, Houses, and Fixtures......................................................... 19
5.3.3 Resettlement Allowances for Home-Owners................................................................................ 20
5.3.4 Compensation for Loss of Businesses or Employment................................................................ 20
5.3.5 Compensation for Public Services............................................................................................... 20
5.3.6 Compensation for Vulnerable Households...................................................................................21
6. PROPOSED RESETTLEMENT OPTIONS AND COMPENSATION......................................................... 22
6.1 CONSIDERED OPTIONS FOR SETTLEMENT..................................................................................................................................... 22
G 2. Compensation and Vai uation Methods..................................................................................................................................... 24
6.2.1.      Basis of Compensation......................................................................................................... 24
6.2.         2. Compensation for Land.................................................................................................... 25
6.2.3. Indigenous Trees....................................................................................................................... 26
6.2.4. Compensation for Private Houses............................................................................................. 26
6.2.5. Compensation for Public Infrastructures....................................................................................27
6.2.6 Summary of Compensation and Rehabilitation Costs................................................................. 27
7. RESETTLEMENT ACTIVITIES AND IMPLEMENTATION........................................................................29
7.1.         Proposed Resettiement/Rehabilitation Activities....................................................................................................... 29
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7.2. Institutional Arrangement and Implementation Strategy............................................................................ 30
7.2.1. Woreda Compensation and Relocation Committee............................................................... 31
7.2.2. Grievance Redress Committee............................................................................................... 32
7.2.3. Grievance Redress Mechanism............................................................................................. 33
7.3. Monitoring and Evaluation....................................................................................................................... 33
7.3.1. Internal Monitoring................................................................................................................. 33
7.3.2. External Monitoring/ Evaluation............................................................................................. 34
7.4. Resources.............................................................................................................................................. 34
8.  IMPLEMENTATION SCHEDULE...................................................................................................... 35
9.   CONCLUSION AND RECOMMENDATIONS..................................................................................... 36
REFERENCES.......................................................................................................................................... 40
LIST OF TABLES
Table 4.1: Kebles falling in command areas of Bale Gaduala Irrigation Project.................................................................. 8
Table 6.1: Major Crops produced, Yield/hectare and price/quintal....................................................................................... 26
Table 6.2: Compensation Cost for Residential Dwellings: Bale Gadula Irrigation Project............................................ 27
Table 6.3: Number and Types of Social Services Proposed as well as amount of budget needed..................................27
Table 6.4: Summary of Affected Assets and Compensation Cost........................................................................................... 28
Table 8.1: RAP implementation Schedule and Responsibly body.............................................................................................. 35
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ACRONYMS AND ABBREVIATIONS
PAP                Project Affected Person
PAF                 Project Affected Families
BoFED            Bureau of Financial and Economic Development CSA                Central Statistical Authority
RAP                Rehabilitation Action Plan STD                Sexually Transmitted Diseases AAOV              Annual Average Output Value CIS                  Corrugated Iron Sheds
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1. INTRODUCTION
In  Ethiopia,  the  displacement  of  people  due  to  Irrigation  Projects  had  not  been  the concern   of   the   government   in   the   past   regimes.   Consequently,   most   of   the development  programs  had  been  in  conflict  with  the  interests  of  local  people  and  a number  of  communities  have  witnessed  serious  resource  depilation  and  economic as   well   as   social   impoverishment   as   a   result   of   displacement   in   the   name   of "development".
However, Dams/ Diversion Structures  for irrigation to promote food self sufficiency and the production of cash crops  as-well as  dams  for hydropower will be further promoted with likely  displacement effects  in the future. Thus, before such a project could be implemented, the preparation of resettlement and compensation action plan would be required.
Bale  Gadula  Irrigation  project  is  envisaged  to  transform  a  traditional  subsistence agricultural   society   into   modern   irrigated   agricultural   farming.   In   addition,   this project  may  not  only  provide  the  desire  benefits  but  can  also  leads  to  significant adverse   impacts   on   economic,   social,   and   environmental   aspects   of   the   local communities.  Meanwhile,  the  population  to  be  displaced  is  assumed  to  continue their   livelihood   moderately   at   the   relocation   site.   Moreover,   the   project-affected households  are  assumed  to  get  appropriate  compensation  for  the  lost  assets  and other  assistances  until  they  become  self-sufficient.  The  issue  also  is  whether  to shoft the small villages or not and adjust canalization accordingly.
Cognisant of this  fact, the Ministry  of Water Resources  via Water Works  Design and Supervision Enterprise is  committed to carryout a resettlement and rehabilitation plan of Bale-Gadula Irrigation project so as  to indicate the extent of losses  that may  be incurred due to the implementation of the project and determine the types  of intervention to resettle and rehabilitate project affected families. Accordingly, this  document is  a socioeconomic  study  and Resettlement Plan (RAP) prepared for the Bale-Gadula Irrigation Project being undertaken by Water Works  Design and Supervision enterprise. It identifies  people affected by the project, the nature and degree of the impacts on them, measures to be taken
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to minimize the effects and compensation and other assistance to be delivered to affected people for unavoidable impacts
I  he  socioeconomic  study  had  already  been  completed.  It  will  be  interesting  to study  the  affects  of  the  proposed  irrigation  project  on  the  people  as  far  as  their sottlement/resottloment   is   concerned   Thus,   the   documents   Socio   Economic Study and Settlement study will baseline information about the project area and a benchmark for detailed engineering design and project implementation.
The study  concentrated on resettlement action plan and some issues  regarding compensation Under this  section attempts  have been made to indicate some adverse impacts  of the proposed project on households  and population; private and public  assets, activities  to be carried out and responsible stakeholders  to resettle the displaced households; some legal and policy  issues  pertinent to compensation; institutional arrangements  needed to implement resettlement and compensation, implementation schedule and estimated costs  for the implementation of the proposed activities.
1.1 OBJECTIVES OF THE STUDY
The irrigation project involves  acquisition of land for canal alignment and other irrigation components. This  will cause displacement of people and may  require involuntary  resettlement of some of the project beneficiaries  that fall within the command area. These are serious  problems, if not handled proactively  as  these are the major components of the socio-economic impacts which may lead to loss of land, crops, dismantlement of production systems, disintegration of the social fabric  and loss  of various  social values, propagation of sexually  transmitted diseases (STDs) and pandemic of IIIV/AIDS besides physical deterioration of the environment, such as soil erosion, shortage and contamination of water etc I he overall objective of this Hosotllomonl Action Plan (HAP) is, there fore, to indicate the impact of Balo Gadula Irrigation piojoct on human life, settlement, occupations, economic  and socio cultural aspects  of the local communities  and indicate the nature ol losses that may bo incurred and types of compensation and
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rehabilitation  needed  for  the  affected  community.  More  specifically  the  study  tries to:
•      Identify  the  number  and  nature  of  the  project  affected  households  and population,
•        Explore  the  types  of  cultural  values,  social  institutions  and  networks that may be affected by the proposed scheme,
•      Indicate  the  types  of  losses  incurred  to  the  displaced  households  and population and
•       Identify   the   resettlement   options   for   the   displaced   households   and propose   the   types   of   compensation   that   would   make   the   project attractive to the affected communities participants
•       Estimate   the   amount   of   budget   needed   for   the   resettlement   and rehabilitation of the affected communities.
1.2. METHODOLOGY
1.2.1.  Data Source and Collection
RAP is  an information-gathering and analytical process  that helps  to design development that has  minimal impact on affected communities. Its  objectives  are to evaluate all physical or economic  impacts, displacement, or temporary  or permanent loss  of assets  or facilities  that may  be experienced by  project-affected communities. Thus, the consultants  have applied a variety  of methodologies  to ensure that impact and compensation assessments  are based on current and up- to-date information. Accordingly, data were obtained from secondary  and primary sources.
1.2.2.  Survey Methods and Data Collection Instruments
The study  used a wide range of survey  tools  including census  survey, sample survey  and asset inventory  as  deemed necessary. A variety  of data collection instruments  were also employed including structured and semi-structured questionnaire interview, focus  group discussion, key-informant interview and public consultations.
The questionnaire was  administered to the PAP by  trained enumerators  with close supervision by  the consultants. Focus  group discussion and key  informant
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nterview  was  guided  by  checklist  Key  variables  included  in  the  census  survey nclude household characteristics, income sources and economic activities.
Asset inventory  encompass  household infrastructure (homestead, fences  and house trees, commercial properties) and public  infrastructure (school, clinics, churches) All relevant data that help to apply  the full definition of resettlement were fully captured and used in the analysis. Readers should note from the outset that resettlement does  not necessarily  involves  relocations  of people rather
resettlement’ means  all the measures  taken to mitigate any  and all adverse moact of the project on PAPs/PAFs  property  and/or livelihoods  including
comoensations. relocations (where relevant) and rehabilitation. It is in this line that the data for this study was collected and accordingly interpreted.
Moreover, the team reviewed all relevant documents  including the national egislative proclamation and procedures  on expropriation of properties  for public 
ojrposes     and     compensation     payments     (Proclamation     No.455/2005     and
Regulation  No.135/2007),  the  Federal  Rural  Land  Administration  and  Land  Use Proclamations     (Proclamation     No.456/2005;     and     relevant     legal     documents published   by   the   Oromia   National   Regional   State.   Further,   data   were   also obtained   from   the   regional   Bureau   of   Finance   and   Economic   Development fBoFEDj,   Department   of   Statistics   and   Information   Centre;   and   the   Central Statistical    Authority    (CSA)    releases    were    used    to    acquire    information    on demographic and population variables.
1.3. SCOPE OF THE STUDY
This RAP document covers only households and socioeconomic infrastructures and services that are directly affected by irrigation and drainage structures such as primary and secondary canals, access roads, camps, quarry sites and require compensation arid rehabilitation measures in order to mitigate adverse impacts. .■ i» ■ fl
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2. LOCAL INSTITUTIONS/ORGANIZATIONS
2.1 FORMAL LOCAL INSTITUTIONS
The new decentralization policy  of Ethiopia passes  decision making power to the lowest administrative levels. Accordingly, Woreda is  bestowing with the responsibility  of overseeing and implementation of government programs  and strategies at local level. The highest decision making organ at the Woreda level is the Woreda administrative council, which is an elected political arm
Representatives  from each Kebele administration are members  of the Woreda council. Thus, the council will assign cabinet members  for the Woreda administration. The majority  of the cabinet members  are the heads  of the Woreda sector offices.
The Woreda administration has  the responsibility  to facilitate and monitor development activities  that fall within its  jurisdiction. Under the Woreda administration, Kebele is operating at the community level in both urban and rural areas. In addition to Kebele administration, there are also women and youth associations  which are supported by  the government. These administrative structures  are responsible for coordinating and organizing development activities at community level.
2.2. INFORMAL/COMMUNITY BASED ORGANIZATIONS
Social institutions  play  an important role in the overall development of a nation. They are bases for modern institutions. In Ethiopia like in other parts of the world there are many  informal institutions  established for different purpose. The vital roles  of informal local institutions  are manifested in mediating and channeling access  to livelihood resources, providing strong social value or safety  nets, and facilitating local self-governance. Local institutions  mediate and channel household’s access to a wide rage of livelihood resources and serve as gateways to livelihood security.
The most common informal organizations  that exist in the area are Iddir, debo, wcnfel and Ekub.Iddir is the most important traditional support system. It is meant for hard time and involves some contribution in cash and/or in kind regularly
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About  41  %  of  the  respondents  have  participated  in  Iddir.  Debbo  (the  traditional labour pool system) has long been one of the most important support system.
About 34% of the respondents  have indicated that they  have been involved in Debbo. Ekub is  another most common traditional money  saving and credit system prevalent in many  areas  in Ethiopia. A group of people come together and collect fixed amount of money  for specific  period and take the money  turn by  turn either through lottery  method or depending on conditions  agreed by  group member at the out set. The support system is  temporarily  formed and exists  until all the group member gets  the fixed amount of contribution they  agreed upon. In-the project area small proportions of respondents have reported they were involved in Equb.
Equb is  now weakening in many  rural areas  owing to the expansion of formal saving and credit systems  in rural areas. The low proportion of participation in E«ub may attribute to such expansion of saving and credit system.
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3. COMMUNITY PARTICIPATION IN DEVELOPMENT PROGRAMS Attainment of the MDGs  of eradicating poverty  and ensuring food security  is possible only  through community  participation in development programs. The envisaged project is one of the government endeavors to this end. Therefore, it is of paramount importance to see the willingness  and participation of the local community  in development programs. The results  of the socioeconomic  survey indicate that, people in the project area were involved in different kinds  of development works. The majority  of them have participated in natural resource development related activities. Around 60 percent participated on afforestion works, 20 % on soil and water conservation and 19 % on construction and maintenance of social infrastructures and service.
Respondents were also asked on the awareness about the proposed project. The overwhelming majority  (85%)  knows about  the project and only 15% reported that they did not know the proposed project till the commencement of the survey. The success   and   sustainability   of   development   project   largely   depend   on   the acceptance  of  the  project  by  target  beneficiary.  Accordingly,  72  percent  of  the respondents   welcome   the   proposed   development   project.   The   high   rate   of acceptance  of  the  project  by  community  may  attribute  to  project  nature  which  is agricultural project which in turn is the livelihood source of the whole community of the area. Good awareness raising work might have also contributed to good acceptance of the project.
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4. SOCIOECONOMIC IMPACTS OF THE PROPOSED PROJECT
4.1. POSITIVE IMPACTS OF THE PROJECT
These are Increased Agricultural Productivity, Job Opportunity, Income
Generating  Schemes  for  Women,  Socioeconomic  Infrastructure  Development  and many others as discussed in various reports
4.2. ADVERSE IMPACTS OF THE PROPOSED PROJECT
4.2.1 Displacement of Households and Population
One of the expected adverse effects  of the Bale-Gadula irrigation project is  the displacement of families  and population from their homes. Nonetheless, during the fieldwork  it was  observed that, the proposed irrigation command area is  very sparsely  populated. In addition almost all of the residential houses  are concentrated around the Kebele administration offices  forming well patterned rural village town, where social services  like school, health post, grain mills, farmers' training center, mosques  and other infrastructures  are relatively  available. Kebeles falling in the command areas  of Bale Gadula irrigation projects  are depicted in Table 7. The total population living in five Kebeles  falling in the command area was  estimated at 16,472 people in 2008 of which 8068 are male and 8404 are female.
Table 4.1: Kebles falling in command areas of Bale Gaduala Irrigation
Project
Population in 2008
S.N    Kebele
Male
Female
Total
1
Weltai Weyb
2538
2600
5138
2
weltai Nagaya
1056
906
1962
3
Bale Gadula
1499
1481
2980
74
Bale Anole
1820
2226
4046
5
Elani Sogido
1155
1191
2346
Grand Total
8068
8404
16472
Source: CSA, 2008
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Weltai Nagaya Kebele is  located along the bank  of Web River, which is  technically not feasible for irrigation. The other Kebeles(Bale Anole and Bale-Gadula) are located along the gravel road that connects  Robe town, the capital of Bale Zone with Ginir Woreda traversing Goro town. Moreover, in all of the villages  found in the proposed irrigation command area, there is  at least one health post, one primary  school, two mosques, three grain mills, one framers'  training center and Kebele administration office.
Thus, the relocation of these villages  to other places  could not be technically, economically  as  well as  socially  feasible so as  to realize the implementation of the proposed irrigation project.
Thus, the project engineering design should be carefully  undertaken so as  not to disturb the existing villages. However, 230 households  and 1,610 populations  who are haphazardly  settled in the proposed irrigation command area may  be relocated during project implementation. In this  scenario, the number of households  to be displaced from their residential area will be insignificant. As agreed with engineering design team of the project, these villages will be excluded from command area. They  should not be relocated so as  to minimize the adverse impact of the project on local community. Only  those households  which are haphazardly settled will be relocated during the implementation of the project.
4.2.2. Loss of Social Services and Religious Institutions
The project is  expected to provide infrastructure and social service development on the one hand and creates  loss  of social service on the other. The RAP study team has  tried to identify  the type and numbers  of social services  that may  be affected by  the project in consultation with local community  members. However, almost all of the existing social services  like primary  schools, health posts, grain mills, pastoral training centers  and Mosques  are concentrated in relatively  big villages  where Kebele administration offices  are located. These villages  have already  been excluded from irrigation command area by  the project design team. Thus, the adverse impact of the proposed project on these services  and institutions will be insignificant.
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4.2.3. Spread of HIV/ADIS
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HIV/ADIS pandemic  has  been emerged as  a major health hazard in Ethiopia affecting mainly  the working age group (15 to 49 years) who are supposed to be highly  productive. Large scale Irrigation projects  and other similar type of project workers  and truck  drivers  are considered to have high potential for the spread of HIV/AIDS and other sexually  transmitted diseases  due to their mobility  from one project site to another.
This   is   partly   because   construction   workers   are   mostly   young,   sexually   active group  of  the  population,  mobile  and  are  forced  to  live  in  hotels  and  camps  without their families
Impacts  from the construction camps  will be severe if camps  are built close to the local settlement areas. The impact from the construction camps  that are constructed close to settlement areas  may  contribute more to the spread of communicable diseases  such as  STD and HIV/AIDS. The other impact is tiansmission of HIV/AIDS from local sex  workers  to the project workforce. Hence, when dealing with the pandemic  problem, not only  the project workers  shall be assumed as  carriers, rather, they  may  be equally  vulnerable from local carriers (e g local sox workers).
4.2.4.  Community Disarticulation
Displacement is  not merely  the loss  of income, land, shelter or food. It will also leads  to the dismantling of existing social networks, fragmentation of communities and interpersonal ties, which further leads  to powerlessness, dependency  and vulnerability  Displacement would also change the current social composition of villages, chinch congregations  and schools  and require the abandonment of burial sites  Unless  it is  caietully  planned, the resettlement process  would cause social disruptions. such as  the disintegration of long standing social support networks  in the displacement aiea Iheie would also be problems  of adjustment in the lesettlement aiea. especially  loi the elderly  and households  with school age children l he combined effect of displacement tends  to lessen people's  material well being, limit their choices  and control over their circumstances, and increase social tension and conflict (institutional Risk).
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4.2.5. Increased Morbidity
Malaria is currently becoming the most pandemic disease in the project area.
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Irrigation water storage and canals  can also offer suitable breeding areas  for malaria-carrying mosquitoes  The quarries  created by  gravel mining for access road and canal construction, if not properly  rehabilitated, can also become seasonal pools  of water that might promote for the breeding of mosquitoes  and, thus  transmit malaria to the populations  living in the project area. Besides, irrigation water storage and canals  can also offer suitable breeding conditions  for snails that act as an intermediate host of schistoma germs that cause bilharzias.
4.2.6.   Economic Loss and food Insecurity
One of the adverse effects  of the irrigation project is  the displacement of families and population from their homestead, farmlands, pastures  lands  and other livelihood options. Accordingly, nearly  620 hectares  of farmland, 80 hectares  of
g azmg
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lands,  300  hectares  wood  lands  will  be  permanently  lost  due  to  the
construction of access roads, canals, camps and other irrigation structures.
In addition, around 400 hectares  of grazing land, 1,500 hectares  of woodlands, and 3.100 hectares  of farm land will be affected by  the proposed irrigation command area. This  would lead to impoverishment due to landlessness, joblessness and loss of access to common property resources, which is termed as economic  risks. ‘Expropriation of land removes  the main foundation upon which peoples  productive systems, commercial activities, and livelihoods  are constructed Destruction of community  productive bases  in agriculture, forests  and water can give rise to food shortage, leading to malnutrition and hunger. Changes in cropping patterns  in the new irrigation set up may  lead to increase in income but it need not translate into gender equity. People who live downstream may suffer from the loss  of the annual flood below the irrigation project, which devastate traditional floodplain farming, fishing and grazing.
In addition, an increase in the irrigation facilities  may  lead to a change in the cropping patterns, such as  the introduction of water intensive cash crops. When cash crops  and green revolution techniques  are introduced women are disposed of their roles as agricultural producers. This leads to a change in gender-based
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division of labor in agricultural activities  as  a result of gender insensitive planning up gradation skills  are rarely  targeted at women. Thus, women’s  access  to resources  will mediated via husbands  or wider kinship network  besides commercial cropping requires  the investment capacity  in support structures  like loans for seeds.
Moreover, the expandability  of farmland will rarely  be possible when sons  get married and families  grow. In order to overcome such risks  the World Bank  has recommended two basic  strategies  for economically  and socially  re-establishing those dislocated communities  from rural settings. These are non-land based and land based strategies. The non-land based strategies  are aimed at wage employment generation through the industrial or service sector or the local or regional economy  with the purpose of income restoration. When the displaced are deprived of their assets  the bank  encourages  compensation for land, housing and infrastructure, based on replacement value, or the level that would enable the recipient to buy  land of comparable quality  and quantity  elsewhere, rather than assessed value.
4.2.7.  Influence on Indigenous Culture
The existence of camps  for the construction workers  close to settlement areas could influence negatively  on local life style and sometimes  may  lead to cultural and social conflicts. To avoid such type of conflicts  and problems  the establishment of construction camps  should be in planned way  without negatively affecting the local resources  and local people life style. In addition, the proposed irrigation project tends  to encourage population densities  to increase either because they  are part of a resettlement project or because the increased prosperity  of the area attracts  incomers. Thus, sufficient infrastructure provision should be considered.
4.2.8.  Loss of Grazing Lands
The proposed irrigation command area is expected to affect more than 400
hectares of grazing lands found in the proposed irrigation command area which
has been serving as the sole dry and wet season pasture for local agro-
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pastoralists. In addition, the proposed irrigation project may  reduce water suppl/ to downstream users, especially  during the late dry  season when natural river flows  are at their minimum Therefore, the project affected households  need to be provided with land for agriculture and pasture to replace what they  lose due to the irrigation project. Provision must be made for an adequate area of irrigated pasture or irrigated farming; what ever is feasible and advantageous for them.
4.2.9  Ecological Imbalance
More than 1500 hectares  of woodlands  will be cleared for the proposed irrigation command area, the construction of canals, access  road and camp. Without appropriate environmental management and monitoring measures, the proposed irrigation project will create serious  ecological imbalances  both at the project site and in adjacent areas. Excessive clearance of natural vegetation cover in the command area, for example, can affect the microclimate and expose the soil to erosion, leading to a loss  of top soil and nutrient leaching. The removal of roots and vegetation disrupts  the water cycle, increasing the rate at which water enters rivers  and streams, thereby  changing flow regimes  and increasing siltation in the downstream zone.
The destruction of natural habitats  in this  manner and the creation of agricultural monocultures  also impacts  on the local flora and fauna reducing biodiversity. The introduction of exotic  species  of plant or animal may  oust indigenous  species  or introduce disease agents, which may  affect plants, animals  and/or man. Fertilizers and pesticides  are widely  applied to correct imbalances. These can percolate through the soil and/or be carried away  in the drainage water polluting both groundwater and surface waters  especially  in the downstream zone. The nutrients in fertilizers  may  give rise to eutrophication of surface water bodies  and promote the growth of aquatic  weeds. Pesticide residues  are hazardous  to the health of both men and animals. This  cumulative effect may  impair the long-term viability  of both the project and economic  activities  in the surrounding area. The following sections  briefly  describe three imbalances  that are common problems  on irrigation schemes:
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4.2.10   Pests and weeds
Irrigated agriculture often provides  improved conditions  for crop diseases  to develop, particularly  fungal and bacterial foliage diseases. Diseases  and weeds can also spread quickly  via the re-use of waste-water and drainage water. Any change to a more uniform environment on the project lands  is  likely  to favour vigorous species adapted to a wide variety of conditions. Species, such as insects and rodents, are often regarded as pests.
The preferred habitats  of natural predators, such as  snakes, birds  and spiders, may  be reduced by  land use changes  and by  the increased use of pesticides. Local or newly imported varieties of weeds may thrive in the irrigated environment and reduce agricultural productivity.
4.2.11Animal diseases
Animals are subject to a similar range of water related diseases as humans. They may also act as reservoirs for human water-based infections and infections with water-related insect vectors. Thus, the promotion of animal husbandry  as  a secondary, income generating activity for farmers in newly irrigated areas should be carefully evaluated for its possible environmental and health risks.
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5. POLICY AND LEGAL ISSUES PERTINENT TO COMPENSATION
The Constitution of the Federal Democratic  Republic  of Ethiopia states  the right to ownership of rural and urban land, as  well as  all natural resources, is  exclusively vested in the state and in the people of Ethiopia Land is  a common property  of the nations, nationalities  and the people of Ethiopia and shall not be subjected to sale or exchange It is  also stated that, the Government of Ethiopia is  entitled with a power of expropriating private property  for development works  it carries  for public purposes/services.
However, on the other hand, the holder of the land has  the right to use,'mortgage and transfer his  holding through succession. The holder of the land has constitutional right not to be evicted from her/his  legal holding. Moreover, the Constitution states  that all persons  who have been displaced or whose livelihood has  been adversely  affected because of state programs  have the right to commensurate monetary  or alternative means  of compensation including relocation with adequate state assistance.
In relevance to this, Article 7(1) of the revised Proclamation No. 455/2005 a Proclamation to Provide for the Expropriation of Land Holdings  for Public Purposes  and Payment of Compensation, proclamation, page 3124 states  that, a landholder whose holding has  been expropriated shall be entitled to payment of compensation for his/her property  situated on the land and for permanent improvements he/she made to such land.
Sub-Article 7(2) indicated that, the amount of compensation for property  situated on the expropriated land should be determined on the basis  of replacement cost of the property  Sub Article 7(5) stated that, the cost of removal, transportation and erection shall be paid as  compensation for a property  that could be relocated and continue its  service as  before Article 8 (1) stated that. "A rural landholder whose land holding has  been permanently  expropriate shall, be paid displacement compensation which shall be equivalent to  ten  times the average annual income ho  secured  during  the five years preceding  the expropriation  of the land'.
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Similarly. Article 8(2) states  that "A rural landholder or holder of a common land whose landholding has  been provisionally  expropriated shall, in addition to the- compensation payable under Article 7 of this  proclamation, be paid until repossession of the land, compensation for lost income based on the average annual income secured during the five years  preceding the expropriation of the land: provided, however, that such payment shall not exceed the amount of compensation payable under Sub Article 8(1).
Sub Article 8(3) further stated that, where the Woreda administration confirms that, a substitute land which can be easily  ploughed and generate comparable income is  available for the landholder, the compensation to be paid under Sub Articles  (1) and (2) of this  article shall only  be equivalent to the average annual income secured during the five years preceding the expropriation of the land.
Regarding valuation of property, Proclamation No. 455/2005, under Article 9(1) provides  that. “The valuation of property  situated on land to be expropriated shall be carried out by  certified private or public  institutions  or individual consultants  on the basis  of valuation formula adopted at the national level". It also states  that 'where the land to be expropriated is  located in the rural area, the property situated thereon shall be valued by  a committee of not more than five experts having the relevant qualification and to be designated by  the Woreda Administration.
5.1. WORLD BANK POLICY ON INVOLUNTARY RESETTLEMENT According   to   the   World   Bank's   policy   guideline   on   ‘involuntary   resettlement’, involuntary   resettlement   may   cause   sever   long-term   hardship,   impoverishment, and   environmental   damage   unless   appropriate   measures   are   carefully   planned and carried out
The Bank’s  guidelines  on involuntary  resettlement were meant to overcome the shortcomings  of the resettlement experiences  in the pre 1980 period and improve the outcomes substantially
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According to the Bank's  policy, particular attention shall be paid to the needs  of vulnerable groups  among those displaced, especially  those below the poverty  line, the landless, the elderly, women and children, or other displaced persons  who may  not be protected through national land compensation legislation. In addition, the implementation of resettlement activities  shall be linked to the implementation of the investment component of the project to ensure that displacement or restriction does  not occur before necessary  measures  for resettlement are in place. These measures  include provision of compensation and other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required.
In particular, taking of land related assets  might take place only  after compensation has  been paid and, where applicable resettlement sites  and moving allowances  have been provided to the displaced persons. Preference should also be given to land- based resettlement strategies  for displaced persons  whose livelihoods are land-based.
These strategies  may  include resettlement on public  land, or on private land acquired or purchased for resettlement. Whenever replacement land is  offered, resettlers  are provided with land for which a combination of productive potential, locational advantage, and other factors  is  at least equivalent to the advantages  of the land taken If land is  not the preferred option of the displaced persons, the provision of land would adversely  affect the sustainability  of the project or sufficient land is  not available at a reasonable price, none land-based options  built around opportunities  for employment or self-employment should be provided in addition to cash compensation for land and other assets lost.
Payment of cash compensation for lost assets  may  be appropriate where livelihoods are land-based but the land taken for the project is small fraction of the
affected   asset   and   the   residual   is   economically   viable,   which   include   active
markets  for  land,  housing,  and  labor  exist,  displaced  persons  use  such  markets,
and  there  is  sufficient  supply  of  land  and  housing,  or  livelihoods  are  not  land
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based  Cash  compensation  levels  should  be  sufficient  to  replace  the  lost  land  and other assets at full replacement cost in local markets.
Moreover, displaced persons  and their communities, and any  host communities receiving them, are provided with timely  and relevant information, consulted on resettlement options, and offered opportunities  to participate in planning, implementing, and monitoring resettlement Appropriate arid accessible grievance mechanisms  are established for these groups. In new resettlement sites  or host communities, infrastructure and public  services  are provided as  necessary  to improve, restore, or maintain accessibility  and levels  of service for the displaced persons  and host communities. Alternative or similar resources  are provided to compensate for the loss  of access  to community  resources  (such as  fishing areas,
a azing
r
areas,  fuel,  or  fodder).  Patterns  of  community  organization  appropriate  to
the new circumstances are based on choices made by the displaced persons.
To the extent possible, the existing social and cultural institutions  of resettlers  and any  host communities  are preserved and resettlers’ preferences  with respect to relocating in pre-existing communities and groups shall be horned.
5.2 COMPENSATION ELIGIBILITY
All project affected persons  and organizations  (whether public  or private) who lose land buildings/houses, crops  or sources  of income shall be compensated or rehabilitated according to the types  and amount of their losses  (permanent and temporary). The cut-off date for compensation eligibility  will be set by  the Woreda compensation committee and the project implementing body  before the beginning of actual project civil works  and following the valuation and registration of all lost assets  Cultivating land, constructing buildings  or settlements  in the proposed irrigation project areas  after the cut-off date will not be eligible for compensation or subsidies  Besides, compensation will not be paid for any  structures  erected, or crops and trees  planted purely  for the purposes  of gaining additional compensation
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5.3       COMPENSATION STANDARDS
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The recent law to apply  for compensation in Ethiopia is  Federal Legislation on Expropriation of Land for Public  Purposes  and Compensation Proclamation No. 455/2005. This  new legislation established detailed procedures  and setting time limits  within which land could be acquired after request is  received from the proponent, principles  for assessment of compensation for properties  on the land, and for displacement compensation. It also empowered the Woreda administration to establish valuation/compensation committees  to value the private properties  affected by  the project and appropriate compensation for eligible persons and organizations.
In  the  case  of  public-owned  infrastructures  to  be  removed  from  the  right-of-way, the  owners  of  the  structures  would  assess  the  value  of  the  properties  to  be removed.    Additionally,    the    legislation    provided    for    appeals    from    valuation decisions  but  such  action  should  not  delay  the  transfer  of  possession  of  land  to the   proponent   or   contractor   appointed   by   the   proponent.   The   compensation standards  to  be  adopted  for  the  Bale-Gadula  irrigation  Resettlement  Action  Plan are briefly described as follows:
5.3.1 Compensation for Loss of Cultivated Land and Crops
Permanently  cultivated land lost due to the project shall be compensated on a land-for-land  basis. In case there is  shortage of land, crop loss  shall be compensated in cash for the project affected persons  at a rate equivalent to 10 times the Average Annual Output Value (AAOV) for a stipulated  number of years. This  time frame is  considered sufficient for a household to be re established elsewhere. Temporary  loss  of cultivated land shall be directly compensated in cash at a rate equivalent to AAOV for the number of years  that the land is not available for cultivation.
5.3.2 Compensation for Residential Land, Houses, and Fixtures
Residential land, houses, buildings and other fixture losses will be directly and
tfully compensated at replacement cost free of demolition expenses and salvaged
materials. Compensation for residential land will be paid to the responsible unit
that will, in consultation with the village committee, make available replacement
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plots  within the community  Houses, out-buildings, apartments  and related fixtures will be compensated in cash at replacement cost with money  paid directly  to the PAPs  Renters  of affected houses/buildings  will be guaranteed of a rent contract at the same rental terms
5.3.3  Resettlement Allowances for Home-Owners
In addition to the compensation for houses  and land, relocation allowances  will be paid to PAPs. These relocation allowances  cover relocation and resettlement costs, including rent of temporary  accommodation that may  be due between the period of demolition of the old house and the construction of a new one (i.e. transition allowance). The cost of moving all household items  and any  salvageable materials  to the new house, or from the rented house to new house (i.e. moving allowance) will also be paid. These allowances  will be payable as  a lump sum to PAPs.
5.3.4 Compensation for Loss of Businesses or Employment
The transition allowance for a commercial business  moving from old premises  to a neve one will be calculated on the basis  of total after tax  profit during the six months  prior to relocation as  declared by  the business  to the tax-collection agencies. The transitional allowance for employees'  loss  of income will be equal to the total sum of earnings  (including basic  salaries  and national subsidies) of all registered employees  (including those retired) for 6 months  prior to relocation. These allowances will be paid on a monthly basis  for up to 6 months from the date of removal from the original premises.
Moving  Allowance: The allowance for transport and re-installation of the equipment of enterprises  will be based on regulations  stipulated by  the Federal and Regional State An allowance equal to the actual expenditure on renting storage space will be paid for temporary storage (if any).
5.3.5 Compensation for Public Services
All  the  public  buildings  affected  will  be  replaced  or  paid  in  cash  directly  to  its 
owners.   New   schools   and   health   facilities   will   be   re-constructed   before   the affected one is demolished.
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5.3.6 Compensation for Vulnerable Households
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Maximum care will be given to the vulnerable groups  defined as  those already experiencing hardship (e g as  a result of extreme Doverty. sickness, female headed households, the aged, etc.) and for whom loss  of land/oroperty  could lead to further hardship. In order to ensure that resettlement does  not further exacerbate the conditions  of these groups, certain incentives  will have to be offered to them in consultation with community representatives.
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6. PROPOSED RESETTLEMENT OPTIONS AND COMPENSATION
6.1 CONSIDERED OPTIONS FOR SETTLEMENT
Option I: Relocate All Villages in the Command Area to other Places
This is the worst option from human development perspective and ideal in terms 
of constructing all irrigation structures.
Under this scenario
Villages  found in all project affected Kebeles  have to be relocated and settled elsewhere. The worst thing about this  option is  unavailability  of enough unoccupied residential land in and around the proposed irrigation project area, except forest lands. As  a result, this  option has  many  challenges, costs  and consequences:
•      Suitable   and   enough   resettlement   land   that   accommodate   all   is   hardly possible to get nearby;
•    Many social infrastructures like schools, health posts, grain mills,
Mosques, farmers' training centers  and Kebele Administration offices  that have been built in many  kebeles  including electric  power transmission lines will be lost;
•    In almost all village there are cultural assets like Mosques and grave yards;
•       Farm   site   and   residential   place   get   very   far   apart,   making   farm management   difficult   for   farmers   or   walking   distance   to   farmland   will substantially incieases;
•      Convincing  both  host  and  displaced  people  about  relocation  and  how  to compensate for hidden costs is high;
•    Dismantling the old infrastructure and reconstruction of new require hug
fund,
•     Congestion  in  one  place  may  result  in  undesirable  results  such  as  spread of    HIV/AIDS,    disease    outbreak,    vulnerable    people    such    as    women, children, disabled, old people could be victimized;
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Option II: Phase Based Interior Resettlement
Phase 1: Develop irrigation infrastructure on vast non-residential areas
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Areas  occupied by  residential places/villages  is  minimal compared to the total land estimated (5000 hectares) to be irrigated So it is  of paramount importance to firs just concentrate on developing irrigation schemes  on non-residential farmlands and let people see the results of that development.
Making the irrigation schemes  functional and reality  on such non residential area alone is great achievement for the project when we see it from the success rate of past large scale irrigation development interventions  in Ethiopia. We do not have good success  record on irrigation development on such large area. Past documented research results  show that the majority  of large scale irrigations  in Ethiopia and in Africa in general have failed.
Phase 2: Moving People to Selected Villages
Based on the success  of phase one, villages  with less  developed infrastructure and less  populated could be relocated to relatively  big villages  .which have access  to primary  school(1-8 Grade), electricity  transmission line , small shops 
.health posts and the like.
Farmlands  available near these villages  should be made available for resettlement of displaced people from the other villages. In turn equivalent land should be given for host farmers  as  compensation at the places  left by  the displaced people. If irrigation on the non-residential farms  succeeded and people reap the benefit, they  can easily  be convinced to make optimal win-win negotiations  and arrangements. Under this  scenario replacement cost for public  infrastructure is estimated at half of the amount for scenario one.
Option III Leave the Villages Untouched and restructure
This  is  the other extreme potion on continuum of resettlement plan of project affected  people. This  is  an ideal system from social and people centered development aspect. After all development is  about people and people should be better-off from pre-project levels. This  option calls  for designing and building
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additional  structures  to  safe  people  from  displacement  and  at  same  time  develop all lands falling in the command areas.
Building access  roads, bridges  may  cause the project to incur additional costs  that under normal circumstances  would have not been needed. But the cost under this scenario is  much less  than option one when social aspect is  taken into account. What makes  this  option less  costly  is  the settlement pattern of the villages. The settlements  of the villages  has  some suitable patterns  i.e. they  all are settled near the bank  of Weyib River and along the gravel road that traverse to Ginir, which under normal circumstance is not recommended for irrigation .
Under  this  scenario  very  few  households  are  affected  by  canal  and  associated structures. Advantages of this option include the following but not limited to:
•   Farmers have chance to closely monitor their irrigation farms which need
intensive care
•   Social tie among community maintained;
•   Cultural properties will be saved
•   Public infrastructures already under development such as electric 
transmission lines will be saved
Therefore, the study  team strongly  recommends  the third option be considered. Accordingly  all compensation and resettlement related costs  have been calculated based on the third option.
6.2. COMPENSATION AND VALUATION METHODS
6.2.1.  Basis of Compensation
Compensation valuations  methods  are based on similar projects  implemented in the country  and is  calculated according to 2009 replacement rates  and values. Any  further adjustments  that may  be necessary  can be done in consultation with the respective Woreda compensation/ resettlement committees  that will be established prior to the commencement of the Project.
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6.2.  2. Compensation for Land
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Land is  the most valuable resources  that household own in general and rural household in particular. Access  to land usually  determines  household food security and economic status.
Compensation is  based on the productivity  of the land and on current market prices  of affected crops. Compensation for permanently  lost land is  usually  paid for ten years  a time period which is  believed sufficient to establish alternative reliable income sources. But our assumption is  that the households  who are expected to be relocated from command area will be provided with the some amount of farmland they  may  lose due to the irrigation structures  after two years the fact that about 5,000 hectares of arable land will be irrigated. Hence, about
310  households  will  lose  around  620  hectares  of  farmland  due  the  construction  of canals,  access  roads  and  other  irrigation  structures  for  about  two  years,  till  the irrigation infrastructures fully established.
We  have  also  calculated  compensation  for  cultivated  land  not  for  grazing,  forest and  other  types.  World  Bank  law  on  resettlements  advice  that,  some  types  of  loss such    as    fishing,    grazing,    or    forest    areas,    cannot    easily    be    evaluated    or compensated   for   in   monetary   terms.   Attempts   must,   therefore,   be   made   to establish access to equivalent and culturally acceptable resources and earning opportunities.
In the project area crops are harvested twice per year. However, in calculating compensation cost it is assumed that land is rested every other year as there is no shortage of land in the area. The calculation of compensation for land is based on
the average yield and current prices  of the crops  indicated in Table 8. Accordingly, the average yield/hectare of all crops  is  20 quintals. The average current prices  of all crops  are 650 birr per quintal. The construction of project related physical infrastructures is expected to affect 620 hectares of farmland. A result about
24,800 quintals  of production is  expected to be lost for two years. Thus, the total cost for compensation of lost farm landjsJ3irr 16,120,000 (24,800 quintals  X 650
Birr = 16,120,000)
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Table 6.1: Major Crops
Predominant Crops Maize
Teff
Wheat
Barley
Species of different types Onion
Garlic. Average
, Yield/hcctaro and
Yield Per/ha(qt) 20 12 15 12 12 36 34 20
Source Goro Woreda Agriculture and Rura 6.2.3.  Indigenous Trees
Current Price/qt
400
700
350
220
916
650
1200
650
Development Office, 2009
Bale Gadula irrigation project area is  very  rich in indigenous  tree species. Land use pattern of the area indicates  that woodland covers  30% of the total land areas of the project command area. Major species  of tree found in the area that have high economic  value include Corclia africana locally  called “wodeesa” , “Ejersa”, "Hindhessa". These indigenous  trees  found in the area have multiple purposes are the main sources  of fodder for livestock, fuel wood and construction. Under such scenario it is  hardly  possible to value the compensation for loss  of indigenous  tree species  in the project area. However, it is  advised that the project should use the state-of-the-art irrigation technology  to minimize the impact on the indigenous trees in the area.
6.2.4.  Compensation for Private Houses
A  total  of  230  houses  will  be  affected  by  the  Project,  of  which  70  %(  161  houses) are  corrugated  Iron  Sheet  and  30  %(  69  houses)  are  thatched  roofs.  The  majority of  houses  in  the  Bale  Gadula  irrigation  project  area  are  of  corrugated  Iron  Sheet (CIS)  roofing.  All  of  the  walls  of  the  houses  are  made  of  woods  and  their  floor  is made of mud.
Compensation for a house will be paid at the rate of 30,000 Birr per house for corrugated Iron sheet, and 15,000 for a house with thatched roofing. A 10% mobilization and transportation cost will be added to this  amount. Accordingly, the total compensation estimate for residential dwellings is Birr 6,451,500.
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Table 6.2: Compensation Cost for Residential Dwellings: Bale Gadula Irrigation Project
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Type of Houses
No. Houses
Unit price(Birr)
Total cost(Birr)
allowance for relocation(40%*)
__
Total Compensation(Birr)
CIS
161
30,000
4,830,000
483,000
5,313,000
Thatched roof
69
15,000
1,035,000
103,500
1,138,500
Grand Total
230
5,865,000
586,500
6,451,500
‘10% for mobilization and transportation costs; Source Computed from Survey Data, 2009
This  compensation is  only  for 230 households  dispersedly  located in command area of Bale Gadula irrigation project. Other households  as  agreed with the engineering team are restructured within the existing. Restructuring existing villages in such a way that it is suitable for farmers to carry out modern irrigation practice is the best option.
6.2.5. Compensation for Public Infrastructures
Public  infrastructures  such as  schools, health posts, clinics  will not be affected by the project as  agreed with engineering design team. However, some social services  have been proposed to be constructed by  the project since the existing ones  are not sufficient to accommodate the labor forces  that may  be deployed to the project area and as  an indirect compensation for the loss  of grazing and woodlands owing to the project.
Table 6.3: Number and Types of Social Services Proposed as well as
amount of budget needed
S.
N
Type of social service
Number
Unit cost
(Birr)
Total Cost
(Birr)
1
Health Center
2
1,500,000
3,000,000
2
Water Supply Schemes
2
500,000
1,000,000
3
Construction of Veterinary
Clinics
2
500,000
1,000,000
Total
6
2,500,000
5,000,000
Source. Computed from Survey Data, 2009
6.2.6  Summary of Compensation and Rehabilitation Costs
The overall budget for execution of the resettlement and rehabilitation activities 
related  to  the  Bale-Gadula  irrigation  project  area  is  summarized  in  Table  11.
Overall about Birr 28,950,075 is  required to properly  settle and rehabilitate project
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affected people in the project area. The total cost excluding public  infrastructure cost is  estimated at 23,950,075 Birr since public  infrastructures  are not directly affected by the project; rather it has been included to make the project attractive to local communities.
Table 6.4: Summary of Affected Assets andpompensation Cost
Item for Compensation
Quantity
Unit of Measurement
Total Cost of
Compensation(Birr)
Private Houses
230
Number
6,451,500
Public Infrastructure
6
Number
5,000,000
Farmland
620
hectare
16,120,000
Sub-Total
27,571,500
Administration M& E cost (5%)
1,378,575
Grand Total
28,950,075
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households who are supposed to be displaced from their original residential areas.
However, the services  of available health posts  have been limited to family planning and environmental education. Thus, the upgrading of two health posts to health centers has been proposed,
•      Construction  of  water  supply  schemes:  -Without  the  provision  of  clean water  supply,  it  can  be  illusion  to  think  improving  the  health  and  socio economic  well  being  of  the  society.  However,  the  water  supply  system  of the   project   area   has   not   been   developed   to   meet   the   needs   of   the population.  As  a  result,  the  development  of  4  water  supply  schemes  like shallow wells fitted with hand pump have been proposed,
•      Construction   of   Veterinary   Clinics:   -   Since   livestock   production   is   the second  livelihood  sources  of  the  households,  the  provision  of  veterinary services  to  the  project  affected  community  is  vital  in  improving  the  health and  productivity  of  livestock  resources  and  as  an  indirect  compensation  for the  lost  communal  grazing  areas  and  bushes.  As  a  result,  the  construction of two veterinary clinics has been proposed,
•     Provision of Training on Income Generating Activities: -The project affected people  should  be  assisted  in  skill  training  based  on  need  assessment  to supplement their income and that will provide a sustained source of income over a longer period of time,
•      The program should also provide training for expertise at Woreda level, so that  they  could  implement  resettlement  and  rehabilitation  program,  natural resources      conservation      and      environmental      protection,      watershed management health and other activities.
7.2.   INSTITUTIONAL  ARRANGEMENT  AND  IMPLEMENTATION  STRATEGY
The implementation of resettlement and compensation program is  multi-sectoral activity  and need the involvement and cooperation of various  government institutions, NGOs, private sectors  and communities  at large. Thus, building a broad base of participation and support of all stakeholders  will bo critical to the successful implementation of the program and to the sustainability  of program
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results. Thus, the following are some among the institutions  that are directly  or indirectly  have stakes  for the successful implementation of resettlement and compensation activities of Bale Gadula irrigation project:
•    The Ministry of Water Resources,
•    The Oromia National Regional Government,
•         The      Oromia      Region      Finance      and      Economic      Development Bureau(BoFED),Agriculture  and  Rural  Development  Bureau(ARDB),  Water Resources   Bureau(WRB)   and   Food   Security   Disaster   Prevention   and Preparedness Commission
•        Bale     Zone     Administration,     Bale     Zone     Finance     and     Economic Development  Office,  Agriculture  and  Rural  Development  Office  and  Water Resources Office
•        Dalo-Mena   Woreda   Administration,  Dalo-Mena  Finance  and  Economic Development   Office,   Agriculture   and   Rural   Development   Office,   Water Resources   Office,   Health   Office,   Women   Affairs   Office,   Cooperative Promotion Office,
•    Kebele Administration Offices of each affected kebele
•    Project Affected Persons(PAPs)
7.2.1.  Woreda Compensation and Relocation Committee
The Ministry  of Water Resource is  responsible for the overall coordination, planning and implementation of irrigation project in general and resettlement/rehabilitation program in particular. However, the actual implementation of land acquisition and resettlement work  will be carried out by Woreda compensation/relocation committee and government line offices particularly  the Woreda land administration and environmental protection office with strong backup from Woreda administration office.
The compensation/relocation committee would be responsible for the planning, coordinating and monitoring of compensation and relocation activities. The following are members of Woreda compensation/relocation committee:
1 Woreda Administrator (Chairperson)
2  Woreda Agricultural and Rural Development Office (secretary)
3  Woreda Land Administration Department
4  Representative of Ministry of Water Resources
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5. Representative from local CBO
The following are the duties and responsibilities of Woreda Compensation/ Relocation Committee:
•    Establishing kebele level implementation committees,
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•    Clarifying policies and operational guidelines of kebele compensation committees,
•    Coordinating and supervising implementation by kebele compensation committees as
Stipulated in federal and regional guidelines,
•    Ensuring that appropriate compensation procedures are followed,
•    Overseeing Project’s requirements related to the social environment
•    Undertakes inventory of the lost assets due to displacement and value the amount of compensation to be paid for each household,
•    Certify eligible individuals for compensation and effect the payment with
project coordination office,
•    Select and approve resettlement sites with displaced households and host communities,
•    Follow up the construction of social services and infrastructures with project coordination office,
•    Advise resettled households on income generation opportunities including
crop production, livestock rearing and other off farm activities and
•    Provide general counseling and monitoring services to the resettled
population
7.2.2.   Grievance Redress Committee
In addition to the Woreda compensation/relocation committee, grievance redress committee should be established before the implementation of resettlement/ rehabilitation program. This  committee is  composed of representatives  from various  government line offices, Kebele administration offices  and project affected community  members. The committee is  established to monitor and conduct hearing on the complaints  and grievances  of affected families  regarding their dislocation and losses  pertinent to the acquisition of land, houses  and other
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assets  including livelihood disturbance by  the project. The committee is  also responsible for ensuring compliance with the requirements  for compensation and resettlement including provision of opportunities  to the affected persons/families  in the form of livelihood and financing assistance.
7.2.3. Grievance Redress Mechanism
Grievances  related  to  any  aspect  of  the  resettlement  and  rehabilitation  activities will  be  handled  through  negotiations  aimed  at  achieving  consensus.  The  project affected persons shall be provided with a list of contact persons who are members of   the   Grievance   Redress   Committee.   Accordingly,   project   affected   persons’ complaints   and   grievances   will   be   brought   to   the   attention   of   the   concerned authorities  through  these  contact  persons  who  shall  be  responsible  for  ensuring that   these   complaints   or   problems   are   properly   channeled   to   the   appropriate authority.  The  process  will  involve  the  case  or  complaint  being  referred  first  to  the duly  designated  community  organization,  which  will  review  its  merit  and/or  provide immediate  response.  If  the  case  cannot  be  acted  upon  or  resolved  at  this  level, but  found  meritorious  it  will  be  referred  to  the  Grievance  Redress  Committee  for appropriate  action.  If  this  first  conciliation  attempt  fails,  the  case  may  be  brought by either party to the concerned Woreda office.
Again if this fails, then government body at the Zonal and Regional level may be requested to a conciliation meeting. The decision Regional authority passes will become final. Those complaints who succeeded in their appeal i.e. if their case is accepted should receive compensation they are entitled as per the compensation procedures and norms stipulated in this document.
7.3. MONITORING AND EVALUATION
7.3.1.  Internal Monitoring
The project shall establish an internal monitoring system in the project office and engage the services  of an external agency  to evaluate resettlement and compensation out puts  and outcomes. Resettlement and rehabilitation activities  of the irrigation subproject should be regularly  supervised and monitored by  the government implementing bodies such as Goro Woreda Administration, Goro
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Woreda Land Administration and Environmental Protection Office in collaboration with Zonal and Regional line departments  as  well as  the Ministry  of Water Resources.
The purpose of monitoring is  to check  the reality  of the reports  (physical performance and budget utilization) submitted and to see the actual achievements on the ground. Review meetings  shall be organized on quarterly  bases  at project site The participants  of the meeting shall be representative from the Ministry  of Water Resources, representative from the Regional government, members  of Woreda compensation and grievance redress  committees, Kebele leaders, religious  leaders, community  representatives  and other relevant local srakeholders.
On  the  other  hand,  independent  local  consultant(s)  should  be  contracted  to  carry oj* external monitoring and evaluation of resettlement activities of the subprojects.
7 3.2. External Monitoring/ Evaluation
External monitoring and evaluation should be carried out to check  whether P'ogram activities  had been accomplished as  per the existing government legislation, proclamations, laws  and regulations  or not. This  will enable the implementing government line offices  to comply  on missed involuntary resettlement provisions. After this, the next hiring of the external monitor should oe at least after 4 cropping seasons  or two years  after the implementation of the project to evaluate the socio-economic  impact of resettlement/rehabilitation on project affected households.
7.4. RESOURCES
In order to carry  out the activities  stated above human, financial, material and organizational resources  should be arranged The Ministry  of Water Resources  is responsible to allocate budget, which is  sufficient for the execution of resettlement arid rehabilitation activities. However, the Oromia National Regional Government via its Zonal and Woreda level structures can provide technical inputs.
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8. IMPLEMENTATION SCHEDULE
Table 8.1: RAP implementation Schedule and ResponsiblyjDody
Responsible body
/Organization/persons
Months
S.N
Activities
1
2
3
4
5
6
7
8
1
Project Introduction and Awareness raising to Gov Offices
MOWR
2
Project Introduction and awareness raising to PAP
MOWR
3
Select RAP executing Committee at Woreda level
MOWR
4
Select RAP executing Committee at community level
Woreda RAP
Committee
5
Mark & list Houses touched by irrigation Design
Woreda RAP
Committee & Community RAP
committee
5
Mark unoccupied land for
replacement
Community RAP
committee
7
Ear Mark Land for Public and Private replacement
Community RAP
committee
8
Identify Vulnerable Groups & give
priority
Community RAP
committee
Construct new public infra structure
3
Private contractor
10
Discus Compensation Norms with
PAPs
MOWR & woreda
11
Distribute Compensation benefit to PAPs according to impact type
MOWR and woreda
Make internal Relocation for PAPs
12
Community RAP
committee
13
Demolish Private buildings
Community
14
Demolish public infrastructures
community
15
Supervise the land acquisition and compensation process
MOWR
16
Make internal evaluation of RAP implementation
MOWR
17
Conduct External Evaluation of RAP implementation
—
External Consultant(s)
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9. CONCLUSION AND RECOMMENDATIONS
Bale-Gadula  Irrigation  Project  is  one  of  the  three  key  irrigation  projects  being developed by the Ministry of Water resources in Oromia National Regional State, Bale  Zone  The  project  is  located  in  Goro  Woreda  at  about  70  kilometers  from Robe town, the capital of Bale Zone. This document specifies the procedures that the  proiect  executing  agency  should  follow  and  the  actions  it  should  take  to properly resettle and compensate project affected people and communities. It was developed  in  line  with  World  Bank  standard  for  RAP  preparation  and  briefly describes policies and procedures that will be applied during the entire life of the schemes   construction   on   matters   of   acquisition   of   land   and   displacement   of households.
A  wide  range  of  data  collection  tools  were  employed  to  achieve  the  set  study objectives.  The  result  of  the  impact  analysis  of  the  project  shows that  the  project will  impose  some  social,  economic  and  environmental  adverse  impacts,  so  that internal  relocation  is  inevitable.  Some  internal  displacement  will  likely  occur.  For those who will be internally displaced equivalent land within the community should be   given.   To   minimize   adverse   impact   maximum   effort   is   being   taken   by professionals   working   on   the   project   through   re-adjusting   the   design   work. Relevant   Ethiopian   government   Legal   laws   and   World   Bank   policy   on   land ownership,  acquisition  laws,  and  transfer  for  development  purpose  were  consulted and  presented  in  way  project  implementers  use  for  successful  implementation  of the RAP.
During field survey we have realized that irrigation canals will affect plots of some farmers Yet other farmers whose land has not been touched by canal will use the water to irrigate his  crop. Under such scenario farmers  during consultation have agreed to compensate for those affected. The socioeconomic  situations  of the project area has  been documented to assist implementers  take due care during implementation of the project.
All potential impacts  of the project on land and other assets  such as  residential houses, public  infrastructure has  been identified and compensation rules  have been established for each.
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Public  consultation was  also conducted to solicit their impression about the project and preference for compensation. Land-for Land for lost land if free land available is  the first choice for project affected people. Sufficient compensation cash should be given where sufficient land is  not available and for demolished assets. Additional supportive measures  such as  giving priority  in land allocation and income restoration should be given for vulnerable.
It was  learnt during survey  that Bale-Gadula irrigation project rarely  affects  cultural properties. In case it happens  restoration and relocation for cultural properties should be in place priorr of civil works. Key  institutions  that should be involved in the implementation of RAP and/or project include Ministry  of water resources, Agricultural and Rural development office, Woreda administration, NGOs  and CBOs. The importance of monitoring, and evaluation plan for RAP cannot be overemphasized. The need for strong M & E that keep organization on right track has  been stressed. The total estimated cost for compensation and others  is  about 28,950,075 Ethiopian Birr.
This  study  has  found that Bale-Gadula irrigation project will not cause serious external relocation of people in the project area. The contributing factor to minimum relocation is  the settlement pattern of villages  in the area. Almost all the villages  are well patterned and big with basic  socioeconomic  infrastructures  and are not technical advised to relocate them.
The outcome of this study should be used as guide line in implementation of some unavoidable internal resettlement. It should not be considered as  panacea to all situations  likely  to evolve during project implementation. The study  team believes that many  things  which were hidden during data collection may  unfold during actual implementation of the project. The envisaged project benefits  large number of farm households.
The Bale-Gadula irrigation project when fully  developed is  estimated to irrigate about 5, 000 hectares  of lands. Taking the average 1.5 hectares  of irrigable landholding in Oromia Region, the project will benefit 3,333 household heads when implemented. During public  consultation many  though liked the plan to introduce modern irrigation to area, but were doubtful on the practicality  of such
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large scale irrigation. People were not match concerned about project impact in displacing people rather on the realization of the project. Prior to expected start-up date of civil works  of the project affected people should be compensated, and if relocation is  necessary, their resettlement site developed including the provision of lost community resources.
The  best  option  for  Bale-Gadula  irrigation  project  to  have  minimum  impact  and cause least relocation is to keep the current settlement  pattern intact and design appropriate    irrigation    structures    around    residential    areas.    In    terms    of compensation   preference   consultation   held   with   community   revealed   where possible  for  lost  land  land-for-  land  rule  should  be  applied-  and  if  land  is  not available sufficient cash compensation should given for project affected people. In addition, the following mitigation measures should be taken to make people in the Droject area better-off against pre-project situation.
•     Give due attention to vulnerable groups such as women, children, disabled and old people during project implementation
•     Civil work should be at the onset of dry season when there are less farming activities
•      Intensive  awareness  raising  activity  on  the  project  benefit,  side  effects, roles  and  responsibilities  of  key  stakeholders  should  be  carried  specially with community
•      Sufficient  preparatory  work  and  consultation  with  community  should  be undertaken before embarking on civil works
•    Use state-of-art irrigation design suitable to the area so as to minimize land
lost do to irrigation structures.
•     Allocate  sufficient  human  power,  budget  and  other  resources  during  the implementation of the project
•      Involve  the  community  in  all  project  phases  and  let  them  build  sense  of ownership to the project
•     The  opportunity  cost  of  land  that  will  be  temporarily  occupied  during  civil works   will   be   high.   Hence,   avoid   usual   gap   apparent   between   the completion civil work and actual project implementation.
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•      The   Executing   Agency   (EA)  should  ensure  that  financial  and  physical resources  for  resettlement  and  rehabilitation  will  be  made  available  in  the right amount at the right time,
•     All legal issues on land appropriation and compensation should be carefully reviewed and appropriately applied for the issue at hand,
•      Prior   to   expected   start-up   date   of   civil   works   ,   the   project   affected households  should  be  compensated,  and  if  relocation  is  necessary,  their resettlement   site   developed   including   the   provision   of   lost   community resources,
•    Additional supportive measures such as' giving priority in land allocation
and income restoration should be given for vulnerable,
•     Land-for Land for lost land if free land available is the first choice for project affected   people.   Sufficient   cash   compensation   should   be   given   where sufficient land is not available and for demolished assets and
•    Strong monitoring and Evaluation system should be in place
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REFERENCES
•    Central Statistics Authority. 2008. Addis Ababa.
•    Education Sector Development Program (ESDP) of Ethiopia/ 1997/98).
•        Ethiopian    Economic    Association    (2004/05).    Transformation    of    the Ethiopian   Agriculture:   Potentials,   Constraints   and   Suggested   Intervention Measures.    REPORT    ON    THE    ETHIOPIAN    ECONOMY.    Volume    IV 2004/05. Addis Ababa.
•    FAO, (2003). Livestock Sector Brief
•    FAOSTAT data (2004). [http://apps.fao.org/faostat/form]
•    The Constitution of the Federal Democratic Republic of Ethiopia. August
21, 1995. Addis Ababa
•    The World Bank Operational Manual Operational Directive (Od 4.30) June
1 1990.
•     Weib River medium scale Irrigation project Feasibility study Annex III Socio economic  conditions,  Farming  systems  and  land  use  by  Ethiopian  Valley Authority July, 1992 Addis Ababa,
•      Federal   Democratic   Republic   of   Ethiopia   Ministry   of   Water   Resources Wabisheble  River  Basin  Integrated  Resources  Development  Master  Plan Study, by WWDSE in Association with WAPCOS,
•      Bale  Gadula  Irrigation  Project  pre  preliminary  Design  report  of  command area volume 1 Technical Report by Water Resources Authority June, 1990.
•     Physical and socioeconomic profile of Bal zone department of planning and Budget March, 1999 E.C Bale Robe.
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Summery

        Project Overview: The document presents a Resettlement Action Plan (RAP) for the Bale Gadula Irrigation Project in Ethiopia, addressing potential socioeconomic impacts and compensation measures for affected communities.
    

Key Project Details

Location: Goro Woreda, Bale Zone, Oromia Region (70km from Robe town)
Scope: 5,000 hectares of irrigable land development
Prepared by: Water Works Design and Supervision Enterprise (WWDSE) with Intercontinental Consultants and Technocrats PVT.LTD (ICT)
Date: May 2010

Affected Population

Kebele	Male	Female	Total Population
Weltai Weyb	2,538	2,600	5,138
Weltai Nagaya	1,056	906	1,962
Bale Gadula	1,499	1,481	2,980
Bale Anole	1,820	2,226	4,046
Elani Sogldo	1,155	1,191	2,346
Total	8,068	8,404	16,472

Estimated 230 households (1,610 people) may require relocation.

Key Impacts

Positive Impacts

Increased agricultural productivity
Job creation opportunities
Income generation schemes for women
Socioeconomic infrastructure development

Adverse Impacts

Displacement of households (230 affected)
Loss of 620ha farmland, 80ha grazing land, 300ha woodland
Potential spread of HIV/AIDS from migrant workers
Community disarticulation and social network disruption
Increased disease risks (malaria, bilharzia)
Economic losses and food insecurity
Cultural impacts and potential conflicts
Ecological imbalances and biodiversity loss

Resettlement Options Considered

Option	Description	Recommendation
Option I	Relocate all villages in command area	Not recommended due to high social costs
Option II	Phase-based interior resettlement	Potential alternative
Option III	Leave villages untouched and restructure design	Recommended approach

Compensation Framework

Based on Ethiopian laws (Proclamation No. 455/2005) and World Bank policies:

Asset Type	Compensation Method
Cultivated Land	Land-for-land or 10x annual income (10 years)
Residential Property	Replacement cost + relocation allowances
Businesses/Employment	6 months income compensation
Public Services	Replacement before demolition
Vulnerable Groups	Additional support measures

Estimated Compensation Costs

Item	Quantity	Cost (ETB)
Private Houses	230	6,451,500
Public Infrastructure	6	5,000,000
Farmland	620ha	16,120,000
Administration & M&E	-	1,378,575
Total		28,950,075

Implementation Structure

Woreda Compensation Committee: Oversees planning and implementation
Grievance Redress Committee: Handles complaints and disputes
Monitoring: Internal and external evaluation mechanisms

Key Recommendations

Prioritize vulnerable groups (women, elderly, disabled)
Conduct intensive awareness campaigns
Ensure community participation in all phases
Implement strong monitoring and evaluation
Time construction during dry seasons
Provide adequate resources for implementation
Maintain existing settlement patterns where possible

Conclusion: The study recommends minimal relocation by adjusting project design to preserve existing villages, with comprehensive compensation measures for affected households totaling approximately 29 million ETB.