E-283VOL.2

BANGLADESH MUNICIPAL SERVICES PROJECT

ENVIRONMENTAL AND SOCIAL FRAMEWORK

FOR

THE SECOND PHASE MDF

FINAL REPORT

SEPTEMBER 1998

PREPARED BY

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Table of Contents

Section 1: Introduction

1.1 Background 1

1.2 Municipal Development Fund (MDF) 1

1.3 Purpose of Environmental and Social Framework (ESF)

2

1.4 Methodology 3

Section 2: Environmental and Social Issues

2.1 Typical Municipal Infrastructure Projects

4

2.2 Environmental and Social Issues 6

2.2.1 Environmental Issues 6

2.2.2 Categorization of Urban Infrastructure Projects 12

2.2.3 Social Issues 15

Section 3: Legal and Institutional Setting

3.1 Legal and Institutional Setting for Environmefit in Bangladesh 17

3.2 Legal and Institutional Setting for Social Aspects in Bangladesh

18

3.3 World Bank Operational Directive on the Environment 24

3.4 Comparison of Bangladesh Requirements with OD 4.01

24

3.5 World Bank Operational Directive on Social Aspects 26

3.6 Comparison of Bangladesh Requirements with OD 4.30 and 4.20 27

Section 4: Enviromnental and Social Framework for MDF

4.1 MDF's Project Cycle and EA/SA Process 28

4.2 Impacts and Entitlements during Land Acquisitionlresettlement

31

4.3 Monitoring and Evaluation Procedures 35

4.4 Census of Affected Population 36

4.5 Grievance Procedures 36

4.6 Environmental and Social Assessment Report 37

4.7 Public Consultation 38

4.8 Reporting to IDA and Others 39

Section 5: MDF's Support for Municipalities on EA/SA 40

Section 6:MDF's Institutional Capacity on Environmental and Social Issues 41

Annexes

Annex lExamples of Urban Projects Requiring a full Environmental Assessment 43

Annex 2Entitlement Framework 44

Annex 3The Acquisition and Requisition of Immovable Property Ordinance, 1982 56

Annex 4World Bank Operational Directives 77

SECTION 1

INTRODUCTION

1.1 BACKGROUND

The Government of Bangladesh (GOB) has sought World Bank assistance, through theproposed the Municipal Services Project (MSP), to address urban poverty andenvironmental degradation by strengthening the institutional capacity of municipalitiesand by improving the environmental and infrastructure services available to the urbanpopulation, in particular, low-income groups. The project is expected to comprise twomain components: (a) an investment component including water supply, sanitation,drainage, solid waste management, slum upgrading, urban roads and markets; and (b)technical assistance to the Government agencies and municipalities.

The project will have two phases. The First Phase will involve a two-year program toprovide core basic services to the two cities (Khulna and Rajshahi) and 14 pourashavas(Mongla, Patuakhali, Satkhira, Pirojpur, Gopalganj, Narail, Chuadanga, Naogaon,Joypurhat, Saidpur, Nilphamari, Kurigram, Parbatipur, and Dinajpur) identified in theFeasibility Study (FS). The municipalities will be provided with technical assistance toimprove financial management, accounting, maintenance planning and administration,etc. The Second Phase (year three to five) will adopt a Municipal Development Fund(MDF) approach, through which municipalities can borrow for infrastructure sub-projectsif they meet eligibility criteria. The eligibility criteria for sub-projects under MDFapproach will include, inter alia, (a) commitment to provide counterpart financing or afinancial contribution to investment cost as well as operations and maintenance; (b)adequate cost recovery measures to sustain project benefits; and (c) effective communityparticipation in planning sub-projects. Eligibility for the borrowing from MDF will beextended to other qualifying municipalities beyond those identified in FS.

1.2 MUNICIPAL DEVELOPMENT FUND (MDF)

The Municipal Development Fund (MDF) will be established by the Government of

Bangladesh (GOB) by the end of the second year of the Municipal Services Project

(MSP) to facilitate improvements to uirban infrastructure services. All sub-projects

thereafter will be processed through MDIF. Using credit made available to GOB by IDA

(and possibly other donors), MDF will provide financial support for municipalities to

invest in such sectors as water supply, sanitation, solid waste management, urban roads,

bus/truck terminals, markets, parks, slum improvement, etc. MDF is proposed to be an

independent entity under the oversight of the Ministry of Finance (MOF) with wide

representation in the board from relevant government agencies, NGOs, civil society, city

and pourashava representatives, academia, and professional groups such as lawyers and

bankers. The MDF would have a small staff with core competencies and would

subcontract out technrical assistance packages. The legal structure being proposed for the

MDF would be like a type of non-banking financial institution with flexibility to lend as

well as borrow. All sub-projects to be financed through MDF should meet rigorous

municipal and sub-project eligibility criteria.

1.3 PURPOSE OF THE ENVIRONMENTAL AND SOCLIL FRAMEWORK (ESF)

In order to ensure that sub-projects to be financed by MDF will be environmentally and

socially sound, the Environmental and Social Framework (ESF) has been designed by

GOB. This ESF is to provide MDF with an overall framework to incorporate

environmental and social concerns in various stages of its project cycle and to guide

processes where these concerns are adequately addressed. ESF reflects the enviromnental

and social guidelines of GOB and IDA. This ESF will be reviewed and, if necessary,

revised by mutual agreement of GOB and IDA before the establishment of MDF. Also,

an operational manual for municipalities to implement this ESF will be developed, if

deemed necessary, before MDF becomes operational

Based on the overall objective mentioned above, the specific objectives of the

Environmental and Social Framework are as follows:

i) to set a policy statement for an environmental and social review process for MDF

ii) to undertake a general assessment of environmental and social issues in the sectors

of the sub-projects.

iii) to describe the overall EA/SA process for MDF sub-projects

iv) to prepare the format for EA/SA report following the requirements of GOB and

the World Bank.

v) to find appropriate institutional arrangement for preparation, review and

clearance, implementation and monitoring of EAs and SAs between government

agencies, municipalities, MDF and the World Bank respectively.

vi) to recommend organizational arrangements in MDF to administer EA and SA

processes.

1.4 METHODOLOGY

ESF was prepared by the Bangladesh Center for Advanced Studies (BCAS), a leadingindependent, environmental research NGO, on behalf of GOB. The report was preparedwith desk research on legal and institutional framework, requirements of GOB and IDA,analysis of environmental and social issues in the Bangladesh urban sector, and bestpractice examples. Municipalities and other government agencies have been consultedduring the preparation of the report.

SECTION 2

MAJOR ISSUES IN SUB-PROJECT SECTORS

Municipal Services Project (MSP) aims to promote environmentally sound, sociallyacceptable and economically viable urban infrastructure projects. Implementation of MSPsub-components through MDF should ensure that enviromnentally and socially soundpractices are followed in the whole process. This section describes generic environmentaland social issues that could arise in the MDF funded sub-projects.

2.1 TYPICAL MUNICIPAL INFRASTRUCTURE PROJECTS

Municipal Development Fund (MDF) would finance the following categories of urbaninfrastructure projects:

- Water Supply

- Urban Drainage

- Urban Roads

- Solid Waste Management

- Slum Upgrading Program

- Sanitation

- Transport Facilities: Bus Terminal

- Commercial Facilities: Kitchen Market

- Recreational Parks

- Community Centres

Urban infrastructure projects and their sub-components that MDF will likely finance are

shown in Table 2.1.

Table 2.1 Municipal Infrastructure Projects

Si. No. Project Sub-component

1. Water Supply 1. Water supply lines2. Street Hydrants3. Overhead tanks4. Water treatment plant

2. Drainage 1. Pucca drains with cover2. Pucca drains without cover3. Kutcha drain without cover4. Outlet structures

3. Roads 1. Widering of roads2. Improvement of road surface3. New roads4. Footpaths5. Street lighting

4. Solid Waste 1. Commnunal binsManagement 2. Handcarts

3. Container handcarts4. Rickshiaw van5. Platform rickshaw6. Tractors and trailors7. Tipping trucks8. Demountable container9. Bulldozer10. Landfill site development11. Training and awareness programme

5. Slum Upgrading 1. Infrastructure developmentProgramme - water supply (hand tubewells)

- sanitaLtion (pour-flush latrine)- drainage

- communal bins

- roads and footpaths

- street lighting

2. Training and community development

6. Sanitation 1. Public toilet blocks

2. Small bore sewerage system3. Training and awareness programime

7. Transport Facilities: 1. Terminal building

Bus terminals 2. Asphalt surfaced station compound3. Bus parking bay

4. Overhead shed to passengers platform

5. Shops and stalls

6. Workshops

7. Public toilets

8. Refuse storage container

8. Comnmercial 1. Selling spaceFacilities: Kitchen 2. Water supplymarkets 3. Latrines and Urinals

4. Public open space

5. Open sale platform

6. Market shed

7. Slaughter slabs

8. Internal roads and drainage

6.

9. Recreational parks -

10. Community Centres

2.2 ENVIRONMENTAL AND SOCIAL ISSUES

2.2.1 Environmental Issues

Roads

The construction of roads has important consequences on environment. The types,

magnitudes and levels of environmental impacts would vary according to the location,

type of the project and technology. In the past, road development project did not consider

environmental impacts. In Bangladesh, enviromnental consideration in road development

projects started receiving attention in the 1980s as a requirement imnposed by funding

agencies. The LGED has developed a guideline for road development project. the Roads

and Highway Departnent has recently established an environmental cell to look into

environmental aspects of the projects in this sector. The potential negative environmnental

impacts of the road development projects are as follows:

- low production of fishes

- destruction of forest and woodlands

- degradation of wetlands

- impact on wild life

- soil erosion

- blockage of passages for wild life

- change of land use

- loss of top soil

- impact on ecologically sensitive areas

- drainage congestion and increased floatability

- loss of standing crops during the construction phase

- accident hazards

- dust, noise and vibration

- increased lead pollution

- increased air pollution due to vehicular emission

Solid Waste Management

Solid waste is treated as one of the main causes of environmental hazard in urban areas.

Solid waste includes different hazardous materials from household to obnoxious industrial

sources. In Bangladesh, this problem is very acute in all the urban centres. In context of

growing urbanization, solid waste management has been identified as one of the key

environrnental concerns.

In the urban areas, the respective authorities are responsible for the management and

disposal of wastes like the Municipal Corporation or Pourashava. But considering the

demand of the people, their logistics and manpower are limited so the service of the

respective authorities is not satisfactory. The other critical issue is that due to lack of

proper dustbins, the ditches, lakes, canals or low-lying areas are used for dumping solid

wastes. This practice of land filling is very common. But people are unaware that the

consequences may be very costly in terms of loss of life and property. Also the practice

of land filling causes water logging problems in urban areas due to the fill-up of the low

lands, lakes, ponds etc. so the rain or storm water cannot flow away.

It is worth mentioning that in some urban areas, private initiatives in someneighbourhoods have started where solid waste are collected from households. This typeof community involvement is encouraging and coordinating efforts of the community withthe waste management by authorities could make a desirable outcome.

The potential negative environrnental impacts associated with solid waste management,

among others, are:

- poor handling of waste leading to pollution of surrounding environment

- occupational health hazard

- hazardous exposition

- poor management

- air pollution through gas emission

- contamination of ground water and surface water

- depreciation of environmental aesthetics

- effect on adjacent property

- degradation of wetlands

- less production of fishes

- less agricultural production

- surrounding health hazards.

In Bangladesh, solid waste management sector has been identified as a major

environmnental problem. The National Environmental Management Action Plan

(NEMAP) has also taken this issue into accounts and has proposed actions to undertake

enviromnentally sound solid waste management practices, setting guidelines for

compliance.

Water Supply

Urban centres in Bangladesh are being catered by the DPHE and local

municipalities/pourashavas for water supply. Piped water supply system exists in almost

all the towns. There are some water su]pply facilities owned by various institutions,

private industries and govermment organizations for their offices and slaff quarters.

The following are some of the potential environmental problems commonly associated

with urban water supply systems which may not normally be considered in project

planning and design in Bangladesh.

(a) Problems related to project siting, such as:

i) Pollution of water supply source by upstream waste inflows from

c:ommunities, industries, agricultural runoff, and soil erosion runoff.

ii) Abstractions of raw water conflicting with other beneficial water uses (for

both surface and groundwater).

iii) For groundwater sources, hazard of land subsidence caused by excessive

groundwater pumping.

iv) Impairment of historical/cultural monuments/areas.

(b) Problems relating to design phase (including assumptions made in design phase on

O&M services to be provided), such as:

i) Polluted/contaminated water served in distribution system (DS)

ii) Inadequate protection of water source (intakes or wells) from surface

runoff pollution.

iii) Excessive growth of algae in distribution reservoirs.

iv) Increase in production of sewage beyond capabilities of community

facilities.v) Inadequate disposal of sludge from water treatment plants.

vi) Unsatisfactory raw water quality due to excessive total dissolved solids

(TDS), chlorides, nitrates, fluorides and other constituents present at

concentrations.vii) Inadequacies in raw water quality which may be difficult to correct by

treatment.viii) Inadequate buffer zone around pumping and treatment plants as needed for

alleviating noise.

ix) Inadequate design of facilities for receiving/storing/handling chlorine

cylinders.x) Impairments commonly associated with transmission lines and access

roads.

(c) Problems during construction stage, such as:

i) Erosion and silt runoff during construction

ii) Resurfacing of exposed areas

iii) Other construction hazards

iv) Monitoring

(d) Problems resulting from O&M inadequacies

A draft EQS has been prepared by DOE which provide standards for different types of

water but strict compliance is yet to be established in Bangladesh.

Sanitation

Part of the capital city Dhaka is served by underground sewerage system and the rest of

the country's urban centres are served by septic tanks, pit latrines, hanging latrines, even

ponds, rivers and other water-bodies, open latrines (open areas) and communal facilities.The lack of appropriate sanitation facilities specially during rainy season and flood period

is the most contributing factor for health and severe environmental hazard. Similarly,

effluent dispersion from latrines into the ground water is a significant pollution problems

in high-water table areas in the coastal belt-towns of Bangladesh. It is felt that only the

provision of simple physical sanitation facilities are not enough for the inhabitants of

flood-prone and high-water table areas to protect themselves from diseases as well as the

environment from further degradation. Specific strategies and appropriate technologies

are required to cope-up with the sanitation problems in such areas of Bangladesh.

The following are potential environmental problems common to community sewerage and

excreta disposal systems in urban areas which may not be considered in usual projectplanning and design in Bangladesh.

(a) Problems related to siting of facilities such as:

i) Routing of sewers

ii) Selection of sites for treatment/pumping plantsiii) Historical/cultural monuments/areas

(b) Problems related to design phase, such as:

i) Overflow hazards

ii) Receiving water standards

iii) Protection of receiving waters

iv) Sludge disposal

v) Discharge of hazardous materials into sewers

vi) control of industrial waste diischarges to sewer system

(c) Problems during construction stage, such as:

i) Control of silt runoff during construction, (may require use of temporary

holding ponds).

ii) Resurfacing/replanting of exposed areas, both to avoid erosion and to

preserve environmental aesthetics.

iii) Other construction stage hazards as applicable.

iv) Monitoring construction (to ensure that contractor complies with specified

constraints).

(d) Problems during operations stage, such as:

i) Health and safety hazards to workmnen

ii) Operations monitoring

(e) Environmental Problems for use of subsurface leaching systems for individual

building excreta disposal, such as:

i) Overflow hazards

ii) Groundwater pollution hazards

iii) Desludging service

iv) Disposal of sludge

Drainage

The quality of urban environment depends to a great extent on the availability and thequality of the essential utility service like drainage. The provision of this service entailsthe construction, operation and maintenance of physical infrastructures such as drains and

road-crossing structures. Urban towns suffer from serious drainage flooding and water

logging caused by storm water and sullage water. This is a serious public concern inaddition to the inconvenience of local road flooding affecting access.

Environmental impacts associated with drainage development are generally as follows:

- Water pollution : Groundwater and surface water.

- Aquatic : Adverse impact on fisheries, eutrophication and

aquatic weeds.- Land : Change of soil characteristics

- Atmosphere : Air pollution

Health Sanitation and diseases

Socio-economic Land loss, crop production, in-igation, navigation,

flood control, resettlement

Aesthetic Landscape

Bus/Truck Terminals

Bus/truck terminals serve inter-district long haul main line buses or trucks and have

public and central areas with its heavy itraffic flow, booking offices, adequate public

areas, parking spaces for buses/trucks not in service, shops, restaurants, newspaper

stands etc. The following are the potential environmental impacts of the terminals.

- Solid waste disposal

- Water pollution

- Disposal of sludge

- Air pollution

- Noise pollution

- Drainage congestion

- Dust pollution

- Resettlement

- Lead pollution

- Loss of agricultural land

Markets

Markets have selling spaces for commodities such as fish, vegetables, rice/wheat,

poultry, stationeries etc. as well as service facilities such as water supply, latrines and

urinals, slaughter house, roads and drainage and public open spaces. The common

environmental problems associated with the market development are as follows:

Water pollution

Air pollution

Noise pollution

Poor handling of waste

Drainage congestion and overflow

Encroachment on historical/cultural values.

Encroachment into precious ecology.

2.2.2 Categorization of Urban Infrastructure Projects

Based on the severity and magnitude of potential environmental impacts, municipal

projects are classified into three categories viz. A, B and C.

Category A projects require a full EA which may have major environmental impacts.

Category B projects are expected to have only moderate environmental impacts. No

environmental impacts are expected for the category C projects. Table 2.2 shows the

examples of categorization for typical municipal infrastructure projects based on potential

impacts as mentioned above. However, care must be taken as the same type of

infrastructure project may have different environmental impacts, depending on location or

surrounding environment. Also, for type of projects that are not in the table below, MDF

will decide the category.

Table 2.2 Environmental categorization of municipal infrastructure projects

SI. Project Sub-component CategoryNo.

1. Water Supply 1. Water supply lines C

2. Street Hydrants C3. Overhead tanks C

4. Water treatment plant A

2. Drainage 1. Pucca drains with cover B

2. Pucca drains, without cover C3. Kutcha drain without cover C

4. Outlet structures B

3. Roads 1. Widening of roads C2. Improvement of road surface C3. New roads A or B4. Footpaths C5. Street lighting C

4. Solid Waste 1. Communal bins CManagement 2. Handcarts C

3. Container handearts C4. Rickshaw van C5. Platform rickshaw C6. Tractors and trailors C7. Tipping truckcs C8. Demountable container C9. Bulldozer C10. Landfill site development A11. Training and awareness programme C

5. Slum Upgrading 1. Infrastructure development CProgramme - water supply (hand tubewells)

- sanitation (pour-flush latrine)

- drainage

- communal bins

- roads and footpaths

- street lighting

2. Training and community development C

6. Sanitation 1. Public toilet blocks B2. Sewerage system A3. Sewage Treaiment Plant A4. Training and awareness programme C

7. Transport 1. Terminal building CFacilities: Bus 2. Asphalt surfaced station compound C

terminals 3. Bus parking bay C4. Overhead shed to passengers platform C

5. Shops and stalls C6. Workshops B7. Public toilets B8. Refuse storage container C

8. Commercial 1. Selling space C

Facilities: Kitchen 2. Water supply C

markets 3. Latrines and Urinals B4. Public open space C

5. Open sale platform C6. Market shed C

7. Slaughter slabs B8. Internal roads and drainage B

9. Recreational - C

parks

10. Community C

Centres

2.2.3 Social Issues

The three major social issues related to infrastructure projects are: low understanding of

the community needs, weak protection and participation of vulnerable groups, and

involuntary resettlement.

Low understanding of community needs

Urban infrastructure projects generally tend to be technically oriented rather

than social. In many instances, they address the infrastructure problems based on the

needs put forward by the local government authorities with low level of public

consultation. They often do not include detailed social assessment during project

preparation. Sub-projects selected in the absence of social assessments do not fully

address the basic needs of the communities and do not clearly indicate who under theproject are at "risk" of being excluded from the project benefits.. In turn, social issues,such as low protection and participation of population at risk and involuntaryresettlement, become major issues once the subprojects are selected. This leads todelayed implementation of the subprojects and lack of ownership.

Weak protection and participation of vulnerable persons and groups

Many infrastructure projects tend to overlook the interests of the vulnerable

persons or groups. For the proposed infrastructure sub-projects, vulnerable persons or

groups are taken as the population at 'risk' who are likely be excluded from the normal

benefits of the projects. They include: the poor households, women, children, elderly

and the handicapped. Poor households are taken as those earning below Taka 3,000 per

month.'. In many instances these vulnera'ble persons or groups have rights to land and

other resources which are socially recognized but not legally recognized. Often cases

the official documents are not updated regularly and they include incorrect

documentation on ownership rights. Targeted support and special attention should be

provided to these vulnerable persons or groups to allow their increased participation

through provision of more options and support mechanisms.

Involuntary Resettlement

Infrastructure projects often involve involuntary resettlement. People losingtheir home represent a major challenge in the resettlement program The most preferredapproach under resettlement is to assist people to move back and away from the area ofimpact, without having to move far disrupting local networks and supportmechanisms.. However, often times, this approach is not feasible and resettlementinvolves identification of sites far away from their original homestead for resettlingaffected population. Though public consultations are carried out to understand theirviews and needs, appropriate support needs to be provided to reduce any negativeimpact caused by the influx of new people. Once the sites are selected, infrastructuredevelopment, conservation of cultural practices, capacity of the new site to support thepopulation in terms of resource availability etc. have to be factored in. If the selected

sites already have host communities living in these locations, then their issues also

needs to be addressed. Timing of the move to new site, assistance during transition and

rebuilding are very critical in the resettlement process.

SECTION 3

LEGAL & INSTITUTIONAL SETTING

Environmental and social assessment procedures for MDF sub-projects should be

based on the institutional and legal setting in Bangladesh. MDF sub-projects should fulfill

the requirements of these institutional and legal settings.

3.1 Legal and Institutional Setting for Environment in Bangladesh

The Bangladesh Environment conservation Act, 1995 is the umbrella environmental

legislation in Bangladesh. This Act is developed on the basis of the earlier Environment

Pollution Control Ordinance, 1977 and came into force on June 5, 1995 through a

notification of the Ministry of Environmnent and Forests. There are a total of 23 laws

contain provisions regarding conservation of environment and control of pollution from

various sources.

The Ministry of Environment and Forest (MOEF) was established in 1989 to address the

emerging environment related issues. In 1995, the Bangladesh Environment Conservation

Act (BECA) was enacted, the Department of Environment (DOE) was established, and

the Director-General (DG) empowered to undertake activities for the "conservation of

environment, development of environmental standards, and environmental pollution

control and reduction which may be appropriate and necessary under the provisions of the

Act.". Besides DOE, several line Ministries have legal and regulatory power related to

the environment as shown in Table 3.

The National Environmnental Policy of 1992, provides policy guidance for environmnental

protection and preservation. In 1992, the National Conservation Strategy was drafted and

in 1995, a National Environmental Management Action Plan (NEMAP) was prepared.

Rules, guidelines and Environmental Quality Standards (EQS) in different sectors are

being framed. Some sectors such as water and rural infrastructure development developed

environmental assessment guidelines before the Bangladesh Environment Conservation

Act of 1995 was enacted. The Local Government Engineering Department (LGED)

developed guidelines on environmental issues related to physical planning in 1994.

LGED set environmental assessment guidelines for the following rural infrastructures:

- Road projects

- Irrigation projects

- Drainage schemes

- Embankment projects

However, since the enactment of the BECA, all development projects fall under its

umbrella. Under section 20 of the BECA, the DOE/MOEF is mandated to formulate the

regulatory framework, rules, procedures and EQS. To date, guidelines for Environmental

Assessment in the Industrial Sector and an EQS for the industrial sector have been

developed. The DOE has formulated the idraft environmental quality standards for the

industrial sector comprised of following:

- water quality standards

- treated sewage standards

- industrial effluent standards

- ambient air quality standards

- air emissions standards

- motor vehicle exhaust emission standards, and noise standards.

3.2 Legal and Institutional Setting for Social Aspects in Bangladesh

Constitutional Provisions

The fundamental right guaranteed under the constitution of Bangladesh indicate the

general guideline for a policy on resettlement/rehabilitation of citizens affected

adversely due to any activity of the state. Article 40 states:

"Subject to any restrictions imposed by law, every citizen possessing such

qualifications, if any, as may be prescribed by law in relation to his profession,

occupation, trade or business shall have the right to enter upon any lawful profession

on occupation, and to conduct any lawful trade or business". Article says every

citizen has the right to practice any lawful occupation while implies that anything that

impedes such right should either be not done or there should be supplementary

measures to make good the losses incurred by the citizen. Resettlement/rehabilitation

of adversely affected people due to infrastructure development very clearly falls

within the such supplementary measures. However, there is certain ambivalence. For

example, the Article (42), sub-clause (1) and (2) states:

42(1) "Subject to any restrictions imposed by law, every citizen shall have the

right to acquire, hold, transfer or otherwise dispose of property, and no property

shall be compulsorily acquired, nationalized or requisitioned by authority of law."

42(2) "A law made under clause (1) shall provide for the acquisition,

nationalization or requisition with compensation and shall either fix the amount of

compensation or specify the principles on which, and the manner in which, the

compensation is to be assessed and paid, but no such law shall be called in

question in any count on the ground that any provision in respect of such

compensation is not adequate.

Legal Framework for Land Acquisition

The legal basis for acquisition of land and other assets under the project is the

Acquisition and Requisition of Inimovable Property Ordinance of 1982, together with

subsequent amendments to that ordinance. Land acquisition cases are dealt with by

the District Land Acquisition Committee (DLAC) headed by the Deputy

Commissioner (DC). the key stages of the land acquisition process are as follows:

Submission by the Requiring Body (in this case LGED/Pourashava/City

corporation) to the DC of a request to initiate land acquisition.

* Issuing by the DC of Notice No.3 stating that it is proposed to acquire property.

A fixed period is allowed for objections to be lodged and heard by the DC, who

then submits the case to the DLAC' and the Divisional Commissioner for approval

or, in the case of larger areas of land, to the Ministry of Land.

* Issuing by the DC of Notice No.6 confirming the intention to acquire property

and stating that all claims for compensation should be made to the DC.

* Valuation by the DC of the assets to be acquired, and issuing of Notice No.7

stating the compensation awards to be made.

The most recent amendments to the ordinance have:

i) Raised the compensation premium added to the calculated market value of

acquired land "in consideration of the compulsory nature of the purchase: from

20% to 50%;

ii) increased the area of land that can be acquired with approval of the divisional

Commissioner, without reference to the Ministry of Land, from 10 to 50 bigha

(50 bigha is just under 7 ha.);

iii) recognized the rights of sharecroppers to compensation.

The present laws, acts, regulations and rules are not very explicit regarding resettlement

and rehabilitation of project affected people (PAP). One can, however, as indicated

earlier, interpret the spirit and letter of these laws and rules to imply that resettlement and

rehabilitation of people adversely affected due to the project is the responsibility of the

project authority. As a result, in recent years there have been several instances where

attempts have been made and are being made to take affirmnative action. In all such cases

the core idea is to prepare an entitlement rnatrix upon an entitlement policy. Entitlement

means the rights of the persons adversely affected by the project to receive certain

benefits from the project authorities to compensate for their losses which may include

land and other immovable property, income, standing crops, occupation etc. Thecompensation is often in terms of cash grants but also in the form of consultation andtraining, credit facilities and other necessary facilities in resettlement and rehabilitation.

Table 3.1: Legislation Regulating Enviromnent and Social Aspects in BangladeshSectors Targeted Legislation

Envirornental Pollution Bangladesh environment Conservation Act, 1995.

Land-related Issues Hill Cutting Ordinance.East Bengal State Acquisition and Tenancy.The Acquisition of Wasteland Act, 1950.The Haor Development Board Ordinance, 1977.The Non-Agricultural Tenancy Act, 1947.Bangladesh Municipal Act, 1932.The Land Reforms Ordinance, 1984.

|Agriculture The Irrigation Act, 1876.The Non-Agriculture Tenancy Act, 1947.The Agriculture and Sanitary Improvement Act, 1920.The Embankment and Drainage Act, 1952.The Agricultural Pesticides (Amendment) Act, 1980.The Agricultural Pesticides (Amendment) Ordinance, 1983.The Agricultural Pest Ordinance, 1962.

Wildlife Bangladesh Wildlife (Preservation) Act, 1974.East Bengal Protection and Conservation of Fish Act, 1950 (amended in 1982).Marine Fisheries Ordinance, 1984.

Forests Forest Act 1927 (amended in 1989).Rules to Regulate Hunting, Shooting and Fishing within the Controlled andVested Forests, 1959.Private Forest Ordinance, 1950.

Aquatic Resources East Bengal Protection and Conservation of Fish Act, 1950 (amended in 1982).Marine Fisheries Ordinance, 1983.

Wetlands The Forest Act 1927 (amended in 1989).Bangladesh Wildlife (Preservation) Amendment) Act 1974).East Bengal Protection and Conservation of Fish Act, 1950 (amended in 1982).East Bengal State Acquisition Act and Tenancy Act, 1950.The Haor Development Board Ordinance, 1977.

Cultural Heritage Antiquities Act, 1968.

Environmental Health The Town Improvement Act, 1953.Factories Act, 1965.Shops and Establishments Act, 1965.

Sectors Targeted Legislation

Pesticides Ordinance, 1971 - as amended by the Agricultural Pesticides(Amendment) Act, 1980, and Agricultural Pesticides (Amendment) Ordinance,1983.Bangladesh Pure Food Ordinance, 1959.Bengal Motor Vehicles Act, 1939.Bengal Vehicles rules, 1940 as modified up to 1983.The Bangladesh Penal code, 1860 as amended from time to time.Local Govermnent Laws:Bengal Local Self Government Act, 1885; andBengal Local Self Government Act, 1919 amended by theBengal Village Self Govermment (Amendment) Act, 1935.

Source: Adapted from "Environmental and Social Framework", IDC, Dhaka,Bangladesh, prepared by BCAS

Table 3.2: Legislation/Guidelines of Direct Relevance to MDF sub-projects

Legislation/Guidelines Comments

Land Acquisition Current GOB Act & guidelines, relating to

Requisition and Acquisition of immovable properties. Acquisition of land

The East Bengal State Acquisition and Tenancyproperties Act, 1950.

Acquisition of Wasteland Act, 1950.

The Non-agricultural Tenancy Act, 1947. Applicable in case of acquisition by GOBwithin Municipal area.

Bangladesh Petroleum Act, 1974. In case the acquisition of land is done byBOGMC for petroleum operation

ConstructionCivil Construction Act, 1984 (of RAJUK) Followed in Urban Areas (same as RAJUK)

Guidelines of the Local Government and EngineeringDepartment

The Environmental Protection Act, 1995 Gives mandate to DOE for seeingenviromnental aspects of all developmentproject, pollution and conservation.

Sector-wise Industrial Guidelines and Standard Regulatory frame-work for selected industries.fornulated under BECA, 1995. An example for type of GOB clearance

procedure.

The Embankment Act, 1952.

Antiquities Act, 1968. Protection of antiquities during construction.

Source: Adapted from "Environmental and Social Framework", IDC, Dhaka,Bangladesh, prepared by BCAS

Table 3.3 : Government Institutions that have Regulatory Power related toEnviromnent/Social

Ministry/Apex | Implementing T Legal Framework Regulatory PowerM tBody Agency I

Ministry of Department of Enviromnent Protection & DOE has regulatory powerEnviromnent and Enviromnent (DOE) Conservation Act, 1995 Ministry has policy andForests (MOEF) liaison functions only.

Departmnent of Forest Act, 1927 (amended in (This applies to allForests (FD) 1989) Ministries)

Bangladesh Wildlife Act, 1974

Ministry of energy Bangladesh Petroleum Act, BOGMC has the regulatory& Mineral (BOGMC) 1974 and Enviromnental power for oil & gasResources Guidelines under preparation operations.

Petroleum Policy, 1993

Environment & Safety Environment & SalaryRegulations - currently Division (ESD) has beenASME/International Codes. recently set up withinNew Sector-specific BOGMC to take care of oilEnvironment & safety codes & gas-relatedare being formulated by environmental & safetyConsultants. issues.

Chief Inspector of Bangladesh Explosive Act (for Chief Inspector ofExplosives handling inflammable Explosives has the

___________ hydrocarbons) regulatory power.

Ministry of Board of Investment Industrial Policy Investment Regulatory Power only caseIndustries (BOI) - Prime Board Act, 1989. of Reserved Sectors. All

Minister's Office other industrial sectors arefree sectors and requirenumber registration only.Power to ask for

Ministry/Apex Implementing Legal Framework Regulatory PowerBody Agency ____||

environrnental clearancefrom DOE.

Ministry of Works Urban development Building construction Act, RAJUK has the regulatoryDirectorate (UDD) 1984 (RAJUK) power for construction in

urban areas UDD does nothave any regulatory poweron construction activities assuch.

Ministry of Department of Agri-Acts, Policy Agri- These departments areAgriculture Agricultural Research Extension Works primarily research and

Extension Input Management (Soil, Seed, extension-oriented and withFertilizer, Water, Pesticides) focus on input development

and management MoA'sPlanning Cell to look afterthe environmnental aspects.

Bangladesh Act of the Parliament Look after crop bio-Agricultural Research diversity.Council (BARC)

Bangladesh Act of the Parliament BARI is engaged primarilyAgricultural Research in development of improvedInstitute (BARI) & varieties of rice, geneticBangladesh Rice resource conservation.Research Institute(BRRI) _-

Ministry of Water Bangladesh Water The Embankment & Drainage BWDB has regulatoryResources & Flood Development Board Act, 1952. power for all water issuesControl (BWDB) including ground and

surface water hydrology.

Surface Water the Irrigation Act 1876Modeling Centre(SWMC) .

Water Resource Has mandate for water sector EIA guidelines developedPlanning Organization planning, data base by FAP-16 and its effect.(WARPO) management and EIA of the

project by an act of theparliament.

Ministry of Land Land Reform and The Land Reform Act, 1989 Regulatory PowerLand Acquisition Responsible for all landDirectorate acquisition issues,

especially those by GOB orof GOB's own (Khas) lands

Ministry of Fisheries Department of The Protection & Conservation The Department ofand Livestock Fisheries of Fish Act, 1950. Fisheries have regulatory

NMinistry/Apex Implementing Legal Framework Regulatory PowerBody Agencv

power for conservation offish.

Marine fisheries Ordinance Regulatory power for fish1984. conservation.

Ministry of Local Local Government, Various Acts and Ordinances LGED of relevant projectGovernment and Engineering relating to Local Government. area is responsible forRural Development Department (LGED), approval of construction

Municipalities, Local plans. It is also responsibleGovernment for looking afterAgencies. Environmental Health.

LGED has EIA guidelinesfor its infrastructuredevelopment projects.

Source: Adapted from "Environmental and Social Framework", IDC, Dhaka,

Bangladesh, prepared by BCAS

3.3 World Bank Operational Directive on the Environment

The World Bank's Operational Directive 4.01 (OD 4.01) outlines policy and procedures

for environmental assessment of projects funded by the World Bank Group (which

includes IDA). Key characteristics of OD 4.01 include categorization of projects based on

potential environmental impact, the EA process throughout the entire project cycle, the

consultation with affected groups and public disclosure of EA reports.

3.4 Comparison of Bangladesh Requirements with OD 4.01

The EA process under both the legislation in Bangladesh and OD 4.01 have their own

requirements, which do not necessary match. A comparison is made to identify

similarities and differences, so that a process meeting more stringent of the requirements

can be applied to MDF projects. Table 4 lists some key comparisons, and discusses the

requirements for the Bangladesh law and OD 4.01. In general, OD 4.01 requirements are

more comprehensive when compared with the requirements of Bangladesh legal system.

Table 3.4: Comparison of Banglaidesh Law with World Bank Group'sOperational Directive on Environment (OD 4.01)

Criteria Requirements as per Law in Requirements as per OD 4.01Bangladesh

1. Type of Environmental Project specific project specific,Analysis regional and sectoral

2. Basis for categorization Currently screening criteria Detailed screening criteria for allavailable only for industrial projects based onprojects, where they are donebased on * Sensitivity

* nature and magnitude of* level of pollution potential impacts

emission * social assessment* type of project and component

location * resettlement and* scale of project rehabilitation* operational activities

Non-industrial projects arereviewed on a case-by-case basisby DOE

3. EA Outputs Since detailed rules and * EA Reportregulations for EA have not been * Analysis of alternativesprescribed, EA outputs are not * Acceptable Environmentalspecified. However, the industrial Management Plansector guidelines, the water sector * Acceptable Resettlementguidelines, and the rural Action Planinfrastructure development * Acceptable Indigenousguidelines have specific EA output Peoples Development Planrequirements, such as

* baseline survey* EIA/IEE report* site clearance* risk analysis and

management* analysis of alternatives

4. Public Consultation No special mention is made for Mandatory atpublic consultation in BECA.

Criteria Requirements as per Law in Requirements as per OD 4.01Bangladesh

Sectoral guidelines mentioned * preparation of EAabove have prescribed * project appraisalconsultation.

plus* project design* project implementation and

monitoring

5. Disclosure of BECA makes no reference to * MandatoryInformation disclosure. The Sectoral * Summary of project

guidelines prescribe some description and potentialprovisions for disclosure. adverse impacts

* Summary of EA report andconclusions

* EA report

Source: Adapted from "Environmental and Social Framework", IDC, Dhaka,

Bangladesh, prepared by BCAS

3.5 World Bank Operational Directive on Social Aspects

The World Bank's Operational Directives OD 4.30 and OD 4.20 describes the Bank's

policies with regard to involuntary resettlement and indigenous peoples affected by

projects financed by the Bank.

The World Bank OD 4.30 (Involuntary Resettlement) explains the Bank policies and

procedures on involuntary resettlement. The overall objective of the Bank policy is to

ensure that the population displaced by a project also benefits from the project and that

the standards of living are improved, or at a minimum, maintained. It emphasizes

planning and implementation of resettlement action plans, with the participation of the

affected groups.

The World Bank OD 4.20 (Indigenous Peoples) describes the Bank policies and

procedures for projects affecting indigenous peoples - social groups with a social and

cultural identity that is distinct from the dominant society. The objective of the policy

is to ensure that development programs are socially and culturally compatible; that they

take place with the informed participation of these groups, and that indigenous people

do not suffer from adverse impacts. For a project that affects indigenous peoples, andIndigenous Peoples Development Plan (IPDP) is required. This is to be prepared inconsultation with such groups.

3.6 Comparison of Bangladesh Requirements with OD 4.30 and 4.20

Bangladesh laws for land acquisition, resettlement, and other social issues are not very

explicit, especially regarding the resettlement and rehabilitation of PAPs. On the otherhand, the World Bank ODs are more comprehensive and stringent. The following tabledetails some key comparison between the Bangladeshi laws and ODs 4.30 and 4.20.

Table 3.5: Comparison of Bangladesh Law with World Bank Group'sOperational Directive on Involuntary Resettlement and Indigenous Peoples(GD 4.30, OD 4.20)

Criteria Requirements as per Law in Requirements as per OD 4.30 andl______________________I Bangladesh 4.20

1. Scope/Applicability Country specific Guiding principles

2. Schedule of Social Not specified Defined linkage between socialAssessment assessment and project cycle

3. Preparation of social Not specified Mandatoryassessment

4. Social assessment outputs Not specified Mandatory RAP and IPDP

5. Definition of PAP Not specified Inclusive

6. Indigenous peoples No special provisions Special status

7. Extent of compensation Provision in principle but no Replacement value and benefitsclear guidelines

8. Nature of compensation Limited Comprehensive

9. Public consultation Provisions but no clear Participatory in each project cyclel ______________________ guidelines

10. Disclosure Not mandatory Mandatory

Source: Adapted from "Environmental and Social Framework", IDC, Dhaka,

Bangladesh, prepared by BCAS

SECTION 4

ENVIRONMENTAL AND SOCIAL FRAMEWORK FOR MDF

A Municipal Development Fund (MDF) will be established in order to finance urbaninfrastructure projects. To ensure that environmental and social problems described in the

above section are adequately addressed in MDF funded projects, an overall framework

(an Environmental and Social Framework) is necessary for concerned parties (MDF,municipalities, etc.) to follow. For those projects that may have adverse environrnental

and social impacts, Environmental Assessment (EA) and Social Assessment (SA) arerequired. The purposes of EA and SA are to ensure that projects under consideration areenvironmentally and socially sound, and that environmental and social consequences arerecognized early in the project cycle and taken into account in project design. Thissection describes the Environmental and Social Framework (ESF) which has beendesigned to integrate EA and SA process with various stages of MDF's project cycle.

4.1 MDF's Project Cycle and EA/SA Process

MDF's typical project cycle will comprise of: (i) Identification; (ii) Preparation; (iii)Appraisal; (iv) Negotiation; (v) Approval; and (vi) Implementation. EA and SA processnormally includes: (i) Enviromnental and Social Screening; (ii) Preparation of Terms ofReference (TOR) for EA/SA; (iii) Appointment of Consultants to undertake EA/SA; (iv)EA/SA Studies; (v) Preparation of EA/SA Reports; and (vi) Review and Approval of

EA/SA Reports. Details of MDF's project cycle and EA/SA process are described below.

Identification

Once projects are identified, they will be screened and classified for EA/SA purposes.

The purpose of Environmental and Social Screening is to decide the nature and extent ofthe environmental and social assessment to be carried out. Loan applications will include

environmental and social category.

For EA purpose, projects are assigned to one of three categories:

- Categor, A: Full EA is required;

- Category B: No full EA, but more limited EA is appropriate;

- Category C: No EA is required.

Majority of new urban infrastructure projects are likely to be EA, Category A or B,

except very small scale repair/maintenance works which are Category C. Major urban

infrastructure projects that may have potential negative environmental impacts are

classified as Category A, and therefore need a full EA. Such projects include construction

of major transport facilities, expansion of water supply systems, solid waste disposalfacilities, sewage treatment facilities, etc. Infrastructure rehabilitation/ improvements orconstruction of small scale infrastructure are normally Category B, which requires a morelimited EA.

The selection of screening category depends on the type and scale of the project, thelocation and sensitivity of environmental issues, and nature and magnitude of the potentialimpacts. Therefore, selection of the category should be based on professional judgmentand information available at the time of project identification. More detailed examples ofthe Category A projects are attached as Annex 1.

For SA purpose, projects.are assigned to one of three categories:

Category A Projects which have potentially adverse impacts, projects on

which stakeholders are divided, and which are sensitive or

controversial

Category B Projects where benefits can be enhanced by:

* more ownership

* better targeting

*more community participation

* more appropriate delivery system

Category C No social impacts

All infrastructure projects fall mainly in category A or B except very small scale

repair/maintenance works which fall in Category C.. The selection of screening category

depends on the type and scale of the project, the location and sensitivity of social issues,

and nature and magnitude of the potential impacts. Therefore, selection of the category

should be based on professional judgment and information available at the time of project

identification. . Infrastructure projects falling within the category A and B require SA

because project benefits can be enhanced through: (a) more ownership; (b) better

targeting; (c) more community participation; and (d) more appropriate delivery

mechanisms. In addition, for projects falling in the category A, detailed consultation will

facilitate an understanding to design projects in a manner that they address the social

controversy and sensitiveness of the comnunity at large.

SA can be described as a process which provides an integrated and participatory

framework for prioritizing, gathering, analyzing and using operationally relevant social

information. SA is mainly carried out to: (i) identify key stakeholders and establish a

framework for their participation in all stages of project cycle; (ii) ensure that the sub-

project objectives and incentives for change are acceptable to the range of people; (iii)

assess social impact of investrnent projects ; and (iv) develop the capacity to enable

participation, resolve conflict, permit service delivery and carry out mitigation measures

in ways that are socially sound. SA involves four major steps. They are: (i) literature

review; (ii) household interviews; (iii) focus group discussions; (iv) in-depth interview

with secondary infornants; and (iv) analysis of information gathered.

Preparation

EA and SA must be undertaken as part of sub-project preparation. Since the concept of

MDF is new to Bangladesh and municipalities' capacity to undertake project preparation

is very limited, MDF is responsible to guide municipalities through the project

preparation process even though the municipalities are theoretically responsible for the

project preparation including EA and SA.

Normal EA/SA process during the project preparation include: (i) preparation of terms of

reference for EA/SA; (ii) selection and appointment of consultants; and (iii) undertaking

of EA/SA studies; and (iv) preparation of EA/SA reports. MDF will provide

municipalities with financial and technical support for EA and SA upon request from

municipalities. The results of the EA/SA provide the baseline information against which

the project's environmental and social impacts can be evaluated. EAISA reports must be

submitted to MDF before appraisal for its review and clearance.

Appraisal

Upon completion of the project preparation, MDF will undertake appraisal of the project

to ensure that the project meets such requirements as the financial, technical,

environmental, social and organizational feasibility. Field investigations will be carriedout when necessary.

Legal Agreements

Based on the findings of EA and SA, legal agreements may be necessary between MDF

and municipalities to agree on mitigation plans for negative environmental impacts, land

acquisition/resettlement, or any obligations of the parties with respect to environmental

and social issues. Special attention must be paid to land acquisition/resettlement issues,

and impacts and entitlements related to these issues are described later.

Implementation

During project implementation, MDF will monitor specific environmental and social

impacts of the project. In addition, MDF may undertake periodic environmental and

social audit to assess the performance of tfhe project on the environmental and social

issues. MDF can engage consultants for these assignments.

The table below outlines MDF's project c,ycle where EA/SA process is integrated.

Table 4.1: MDF's Project Cycle and EA/SA Process

MDF's Project Cycle Responsibility Decision/Product

1. Environmental/Social MDF/Municipalities - Environmental and social screening

Screening and preparation of Screening Report

- Categorization and Decision for EA

and SA

2. Preparation of TOR for Municipalities/Consultant - TOR for EA/SA

EA/SA assisted by LGED in

concurrence with MDF and

IDA

3. Appointment of Consultants Municipalities - Consultants appointed for EA/SA

4. EA/SA Studies Municipalities through - Draft EA/SA reports

Consultants

5. Review of EA/SA reports MDF/GOB/IDA - Clearance by GOB/MDF/IDA

Municipalities

6. Appraisal MDF - Appraisal report

7. Developing Legal Agreements Municipalities/MDF/GOB - Legal agreements

8. Implementation Municipalities assisted by - Construction or Improvements of

LGED infrastructure

9. Project Monitoring MDF/Municipalities - Periodic monitoring reports

10. Environmental/Social MDF/Consultant - Audit reports

Auditing

Source: Adapted with modification from "Environmental and Social Framework",

IDC, Dhaka, Bangladesh, prepared by BCAS

4.2 Impacts and Entitlements during land acquisition/resettlement

Types of Social Impact to be Addressed

Generally, there are two broad categories of social impacts that can

occur after implementing the project (both phases) which require mitigation measures.

They are:

direct impacts; and

indirect impacts

The first category represent direct project impacts on an identified population.

Detailed census and survey will help to register and document the socio-economic

status of the people who will be directly affected by the sub-project. The second

category represents indirect impact, where group members need not be registered (

for example: community as a whole). Gains and losses of a group-oriented returns are

not quantifiable in terms of impact. Support mechanism will be collectively oriented

and the monitoring of these development efforts will study the impact and benefits for

the groups involved. Details on areas of impact and entitlement units are provided in

the table "Entitlement Framework" in Annex 2.

Direct impact

Loss of land and trees there on: : (i) used for purposes other than residence; (ii) used

for encompassing the residence; and (iii) left vacant land with no definite purpose.

This category of impact is mainly felt by non-vulnerable population.

Loss of residential/non-residential and associated structures include both shiftableand non-shiftable structures. Non-shiftable structures are structures with walls and

roofs that are not salvagable such as brick walls with reinforced concrete roof. This

category of impact is mainly felt by the non-vulnerable population. Shiftable structure

is a structure made of materials that could be salvaged without incurring much

damage to those materials such as the bamboo walls. This type of impact is felt by

both non-vulnerable and the vulnerable groups/persons.

Loss of usufruct rights through mortgage or lease: This applies to both structures or

land with legal agreement or with verbal agreement. This type of impact is typically

felt by non-vulnerable groups.

Loss of income from rented private land or premises: covers loss of income from

rent for non-residential, residential premises and land. This impact is mainly felt by

vulnerable and non-vulnerable population.

Loss of income from displaced business activity: This includes loss of income

through owner operated business and through business operated under franchise. The

loss of income from owner operated business can impact both yulnerable and non-

vulnerable population (such as small vegetable stalls, sweet meat stalls). The business

operated under franchise typically impacts only the non-vulnerable. This type of loss

in income can be either temporary or permanent, such as the loss of income for wage

earners.

Indirect group oriented impacts

Loss of livelihood means due to collective impacts. The sub-project may have an

indirect impact on people living or working in the vicinity of the direct impact area.

This will include both positive and negative impacts. Such impacts will be collective

in nature and group members are not individually registered. Gains and losses are not

quantifiable in terms of impacts on the individual. Mitigation and support mechanisms

will be collectively oriented. Negative impact may include temporary loss of income

for non-stall hawkers -and any indirect group oriented impacts such as loss of

diminished livelihood from any other impacts which may be identified in the process.

Indirect community oriented benefits and enhanced opportunities include improved

access to common property resources, consultation and counseling regarding

alternatives and opportunities.

Unit of entitlement

The unit of entitlement is the entity (individual, family and community) eligible to

receive compensation or rehabilitation benefits. Joint on-site inventory and

verification team will determine the appropriate unit of entitlement, especially in cases

where resettlement process disrupts existing household relationships. It is alsonecessary to ensure the entitlement targets those adversely affected, and to clarify theresponsibilities of agencies managing compensation and rehabilitation. Followingprovides a summary of entitlement matrix followed by detailed entitlement frameworkof different types of categories and their support mechanisms is included in theAnnex 2.

The summary of entitlement matrix provides details on where "vulnerable" and"non-vulnerable" impactees will be affected by different types of sub-project impacts.It also clearly indicates where "vulnerable" and "non-vulnerable" impactees areeligible for assistance under the sub-project. Vulnerable population can be explainedas those population who are at risk and who have limited access to normal benefits ofgrowth and development. They are eligible for special attention and are provided withmore options than non-vulnerable groups during resettlement. All other categories ofpopulation who have access to normal benefits of growth and development areconsidered non-vulnerable.

Table 7: Summarv of Entitlement Matrix*Municipality Services Project, Bangladesh

Social Impacts and Resettlement: Summarv Entitlement Matrix

Land Acquisition Inside Right of Way

Impacts and assistance criterial Vulnerable | Non- Vulnerable Non-

_Vulnerable Vulnerable

A. Direct Impact Area: Loss of land and other assetsSupport given to families and households.

I Consultation. counseling regarding V_

alternatives. and assistance in identifying new

sites and opportunities

2 Compensation for land at replacement cost, Lfree of fees or other charges

3 Advance notice to harvest non-perennial crops, * 1 1 1

or compensation for lost standing crop.

4 Compensation for perennial crops and trees. a

calculated as annual net product value

multiplied by number of years required fornew crop to start producing.

5 Replacement or compensation for structures l v

and other non-land assets.

6 Rights to salvage materials from existing 1 ~structures, trees, and other assets.

7 Assistance in accessing housing schemes, or 1 1 l

other targeted support to assist poor andvulnerable in re-establishing their homes

8 Option of housing in resettlement sites in cases < ~of cluster relocation

9 Shifting assistance and transition stipends

B. Direct Impact Area: Lost or diminished livelihoodSupport given to adult individuals

10 Rehabilitation and assistance for lost or l

diminished livelihood

1 Additional support mechanisms for vulnerable l

groups in reestablishing livelihood

12 Employment opportunities in connection with lproject

13 Anv other impacts not yet identified, whether Unforeseen impacts shall be documented and will be

loss of assets or livelihood. mitigated based on the principles agreed upon in this policyframework.

C. Indirect, group-oriented negative impacts in the vicinity of the componentsSupport given to communities

14 Impacts not yet identified, whether loss of Impacts shall be documented as they arise and mitigated

community-owned assets or livelihood based on the principles agreed upon in this policyframework.

Municipality Services Project, BangladeshSocial Impacts and Resettlement: Summarv Entitlement Matrix

Land Acquisition Inside Right of WayImpacts and assistance criteria

Vulnerable Non- Vulnerable Non-Vulnerable Vulnerable

D. Indirect, group -oriented enhancement opportunities in the vicinity of thecomponents

Support given to communitiesImproved access to common properyresources. consultation counseling regardingaltematives and opportunities

* Source: The structure of this Entitlement Matrix has been adapted with somemodification from Hariyana Highways Project of India, 1998.

4.3 Support mechanisms for different categories of impact

Loss of assets

Sub-projects may cause loss of assets such as productive land or house

plots, vacant land, structure, wells, trees, or any other assets. The sub-project will

compensate and replace lost assets at their replacement cost. The replacement cost is

defined as the amount required for the affected person to replace the lost assets

through purchase in the open market. The entitlement unit for such assistance is the

household or the family. Based on the previous experiences in Bangladesh and other

South Asian countries, cash compensation carries a high risk and is often found

inadequate in helping the vulnerable groups re-establish their lost assets, particularly

in the case of productive land. The wealthier people, on the other hand, may prefer

cash compensation which does not entail a risk in their case. The sub-project will

therefore provide the option of compensation in kind as well as other support

mechanisms to those deemed as vulnerable or at risk.

Loss of house and shelter

People loosing their homes represent a particular challenge in the

resettlement process. Every effort will be made by the sub-project to ensure that new

housing is made available before people are required to relocate. In the instance of

linear resettlement, only narrow strips of land and often only parts of structures are

affected and large groups of people are therefore not likely to be affected. The

preferred approach is to assist people to move back and away from the area of impact,

without having to move far away and disrupting local networks and support

mechanisms.

If it is found that clusters of people have to be relocated, the sub-project

will provide options of new housing in a resettlement site approved by the affected

population with adequate infrastructure utilities though many people will prefer self-

location. In the latter case, compensation and support should be provided to them, and

the sub-project should assist and facilitate resettlement process. The resettlement sites,

if developed as a part of the sub-project, the "host population" will be consulted about

their views and needs, and be given appropriate support to reduce any negative impact

that may be caused by an influx of new people.

Loss of livelihood or income opportunities

In some cases, the relocation caused by the sub-project may lead to

temporary or permanent income opportunities. In such cases, assistance will be given

to affected population to re-establish their livelihood and income, and to compensate

for temporary losses. The unit of entitlement eligible for support in such cases will be

female and male adult individuals. All adult individuals of households affected in this

manner will be eligible for support. If the sub-project impact leads to people being

unable to continue with their previous occupation, the sub-project will provide support

and assistance through employment counseling and alternate employment strategies.

While implementing road components, a common loss is the

displacement of a business structure such as a small roadside shop. The sub-project

will assist such businesses in relocating, and in continuing their preferred occupation

without loss of customer base.

Loss of access to common resources and facilities

During sub-project implementation, there may be losses of common

property resources or civic amenities. In this category of impacts, the beneficiary

units will be the households or the communities entitled to replacement of common

property resources/amenities at minimum Government standards and access to

equivalent amenities or services..

Group-based development opportunities

In addition to the loss of assets or livelihood, the sub-project will have

indirect impacts on the population living in the vicinity of the area of impact. The

impacts may include developmental opportunities such as better access to common

property resources, water and sanitation. Through designs, provision of infrastructure

and other support mechanisms, the sub-project will replace lost assets and minimize

any negative impact on groups. This will apply particularly to groups which are

considered vulnerable. Additional benefits such as consultation and counseling

regarding alternatives and opportunities will also be considered during

implementation.

Approach

The sub-projects through social assessment, census and surveys will

determine the affected population (PAPs), who among the affected population may be

considered as vulnerable or at risk and will register and document their socio-

economic status. Impacts will vary depending on the reason for vulnerability under

the project. Vulnerable groups will receive targeted support and the sub-project will

provide the vulnerable groups with more options and support mechanisms than those

who are not considered vulnerable. During implementation, the sub-project will

provide adequate notification, counseling and assistance to the PAPs so that they will

be able to move or give up their property and assets without undue hardships before

civil works start. The sub-project will ensure that civil contracts are not awarded

before compensation and assistance to the PAPs have been provided in accordance

with the entitlement policy framework. Resettlement work and updating of

environmental and social studies will be a continuous process throughout the

implementation of MDF. MDF will be responsible to monitor all environmental and

social impacts of the sub-projects financed through MDF.

Social Assessment

Social assessment will be undertaken in order to: (i) ensure that sub-

project objectives and incentives for change are appropriate and acceptable to

beneficiaries; (ii) establish an appropriate framework for beneficiary participation; and

(iii) minimize or mitigate adverse social impacts. Social assessment will also identify

stakeholders and the vulnerable groups within them and will further enable. the

formulation of the participation and consultation process which will be followed

throughout the sub-project cycle. Social assessment will minimize associated negative

social impacts at the conceptual design phase of the sub- project.

Census and Survey

A full census and survey will be undertaken to register and document the

status of the potentially affected population within the sub-project impact area. PAPs

will be those groups of population falling within the area of impact based on the final

engineering designs and layout. Census and survey will provide a demographic

overview of the population and cover people's assets and main sources of livelihood.

The results of the survey will provide the baseline information against which the sub-

project's social impacts will be measured and evaluated. It will cover 100 % of the

potentially affected population within the likely area of impact and its boundaries.

While undertaking this process, all boundaries based on the field surveys will be

verified and certified.

Cut-off date

Cut-off dates for entitlements under the sub-project will determine who will be

eligible for support and will prevent speculative incursions in the area of impact or

other attempts at speculative gains. Therefore, people moving into the area of impact

after the cut-off date will not be entitled to support. However, if normal changes in

tenure situation or ownership changes occur between the cut-off date and the date of

displacement, the new tenant or the owner will be provided with support . Such cases

will be evaluated and judged on a case to case basis.

Compensation under the law entitlements involving private land

acquisition will follow Bangladesh practice of the issuance of Notice 3 and the cut-off

date for compensation under the law entitlements will be the date of issuance of

Notice 3.

4.4 Coordination Between Civil Works and Resettlement

Screening and planning

Efforts will be made to reduce impacts of the sub-project. both in terms ofenvironment and social issues. The sub-project will co-ordinate the design processwith the findings from screening and studies related to socio-economic impacts andthe environment, in order to minimize the negative impacts and maximize thebenefits.

While considering the different design options environmental and socialconstraints and opportunities will be factored into the decision along with thetechnical and economic considerations. This will be continued throughout the sub-project implementation period and when design modifications occur.

Implementation

During the sub-project implementation, the resettlement program will becoordinated with the completion of the designs and the likely timing of civil works.The sub-project will provide adequate notification, counseling and assistance to theaffected people so that they are able to move or give up their property and assetswithout hardships.

The sub-project will follow the World Bank's Operational directive 4.30 onInvoluntary Resettlement that satisfactory relocation must be completed beforeawarding a contract for civil works. The sub-project will ensure that the civil workscontracts are not awarded before compensation and assistance to the PAPs havebeen provided in accordance with the entitlement policy framework. Civil worksaward of contract will not be made until the procedures for resettlement are fullymet. The normal procedures for land acquisition will be followed under the sub-project. For compulsory acquisition of private land, the Bangladesh Acquisitionand Requisition of Immovable Property Ordinance of 1982 will apply. In adequateattention to this issue will lead to costly delays. The required coordination hascontractual implications, and will be incorporated into the bidding documents andcontracts. Each entitlement unit will be issued with an identity card. This will listthe various support mechanisms and entitlements due to the person or household.

The resettlement work and updating of studies will be a continuous processthroughout the implementation of MDF. The implementation and phasing of workwill be coordinated with designs and civil works as suggested below

ACTIVITY TIME FRAMEle.Definition of impact area.Social Assessment.Census and survey of affected

population; .Issuance of notice 3 andpresentation of entitlement andoptions> .Photos of identity cards made P) .Valuation of properties andconsultations and facilitation ofcommunity involvement> .Follow up with PAPs andfinalization of choices among variousoptions> .Issuance of notice 7 and ID cardslisting options agreed on entitlementsand support mechanisms;.Update of information regarding

project impacts, adjustments of tablesand budgets in the resettlement plan);.Implementation of resettlementincluding special assistance tovulnerable _

>.Monitoring and documentation thatrelocation, resettlement,compensation and support are -adequatel implemented) .Commencement of civil worksafter resettlement. issues have beenadequately addressed and effectivelycleared

Source: The structure of the above table is adapted with modifications fromHariyana Project of India 1998

4.5 Consultation and Participation Process

Experience indicates that involuntary resettlement gives rise to severeproblems for the affected population. These problems may be reduced, if as a partof resettlement program, people are properly informed and consulted about the sub-project, their situation, preferences, and are allowed to make meaningful choices.This serves to reduce the insecurity and opposition to the sub-project which areotherwise likely to occur.

The sub-project will therefore will ensure that the affected population and

other stakeholders are well informed, consulted in a meaningful way, and allowedto participate actively in the developmiental process. This will be done throughoutthe sub-project cycle - during the preparation, implementation and monitoring ofsub-project results and impacts.

The consultation will use different techniques such as in-depth interviewsfocus group discussions, workshops, seminars and meetings. Key informants willalso be interviewed at all levels of stakeholder involvement. In addition, the sub-project will undertake information campaigns in order to ensure fair, equitable andtransparent process of resettlement.

4.5 Options and Choices for Project affected People

The sub-project will carry out consultations to inform the PAPs about thesub-project, its expected impacts, the various entitlements offered to differentcategories and available options. The PAPs will be counseled in order to assist themto make meaningful options In the case of vulnerable population, the sub-projectwill also undertake a risk and benefit analysis of each option and supportmechanisms and explain the benefits and potential risks to the target population.

Sub-project will seek to facilitate active participation of the affectedpopulation and increased acceptance of the resettlement and rehabilitation efforts byallowing the people to choose from different options.

4.6 Grievance Procedures

Throughout the land acquisition process the PAPs will be provided withassistance and advice to resolve queries and redressing grievances. The sub- projectwill ensure that a good deal of patience and sympathy will be shown towards thePAPs who are presenting grievances to feel at ease, to listen to their grievances andto assist them in resolving those that are legitimate.

Grievance procedures will be explained in an information brochure that willbe distributed among the PAPs during the consultation and throughout theacquisition process. The information brochure will define the composition andfunction of the grievance committees, the nature of the grievances they would hear,the procedures to file the complaint, the hearing process etc. MDF will beresponsible for developing the information brochures and setting up Grievancecommittees at the Pourashava level with representations from local authority, sub-project authorities, civil society, sub- project affected people, and an impartialnominee chosen with consensus of the other members. The committee will resolvesome matters either by providing informration or agreeing on a follow-up action, andwill reject some grievances as not legitimate. In latter case, the committee willexplain to the PAP why the grievance was not considered to be legitimate and thedecision will be recorded. For unresolved grievances, the committee will: (i)

follow-up and investigate in more detail and (ii) undertake on-site fieldinvestigations with the concerned PAP to review the findings of investigation. Somegrievances may be resolved at this stage, or rejected as not being legitimate. Again,in the latter case the situation will be explained to the PAP and decision recorded.

Legitimate grievances which the committee is unable to resolve will bereported to XEN stating the nature of the grievance, the findings from theinvestigation and recommending further action which may even include submissionof a formal request to the DC to consider the matter. All queries and grievancespresented to the committee and actions taken and decisions made will be maintainedin a register.

4.7 Public Consultation

During land acquisition process, public consultation will follow three stage:(i) awareness building; (ii) joint- on site inventory and verification; and (iii)finalization of agreements.

Awareness building: Once the PAPs are briefed on the areas chosen for landacquisition, notices will be posted and leaflets distributed to the PAPs, pedestriansand even temporary hawkers in the locality. Upon submission of the case to theDC, an information campaign will be undertaken . The campaign will includedistribution of leaflets informing people within the vicinity of the area of impact on:(i) intention to acquire the land; (ii) the assets and losses which are eligible forcompensation and those that are not eligible for compensation; (iii) procedures forland acquisition; and (iv) rights of the PAPs and of the various steps that theyshould take to protect their rights. In addition to the distribution of leaflets, publicmeetings will also be held to facilitate dialogue between the authorities and thePAPs on the issues of land acquisition and also to provide counseling to those whoseek it.

Joint- on site inventory and verification: Prior to joint on site inventory andverification, the PAPs will be informed regarding when and where land acquisitionis proposed to take place and who should attend the process. A list of documentsthat the PAPs must carry will also be distributed to the PAPs. During the actualprocess of joint on site inventory and verification, PAPs will again be advised onthe procedures and on the available support from Resettlement Committees.

Finalization of agreements: After the issue of the Notice NO: 7, PAPs will befurther advised on when and where the compensation will be made and thenecessary documents they should carry with them in order to obtain payment. Atthe time of payments PAPs will also be informed of the time they have to vacate theland and their rights to salvage their assets.

4.8 Monitoring and Evaluation Procedures

Indicators will be set up to monitor and evaluate the progress andperformance of land acquisition program. Each year the sub-project will prepare anAnnual Plan of Operations (APO) which will define the scheduling of all plannedproject activities and outputs, the resources required to implement the plan and thetargets for objectively verifying the indicators of progress. The APO will also includean annual plan for land acquisition.

Indicators will be used to monitor and report on the progress of landacquisition for each component. Indicators from number four onwards willinclude defined targets. The Joint On Site Inventory and Verification will provide asecond chance to re-confirm the data collected. A computerized data base will be setup for each component.

The indicators include the following:

1) Socio-economic characteristics of each PAPoccupation of the PAP;

legal owners of the homestead land left wvith less that 2.5 decimals will be identified;

proprietors of businesses who will have to re-locate their business will be identified;

and

all squatters who will have to relocate their dwelling or temporary stalls will be

identified.

2) The affected plot number or numbers that relate to each PAP

3) The nature and quantity of the assets/losses on each plot for which the PAP isentitled for compensation

4) Date of submission of land acquisition case to DC

5) Conducting of information campaign

6) Date of issue of Notice No: 3

7) Date of issue of Notice No: 6

8) Date of issue of Notice No: 7

9) Actual expenditure on compensation of affected persons

10) Date of occupation of land by LGED

Another data base will be created to track the performance of land acquisition as

implementation proceeds. This database will provide details on the performance of

land acquisition. It will be regularly updated through collection of data from the field

to record: The database will include the following:

1) Total number of PAPs relocated

2) Legal owners of homestead land left with less than 2.5 decimals who have re-

located their homestead

3) Business proprietors who have re-located their businesses

4) Squatters who have re-located their dwellings

5) Market valuation of the assets to the acquired and other losses for each PAP, and

hence the amount of compensation to which each PAP is entitled

6) Date of issuing of Notice No: 7 to each PAP

7) Timning and amount of compensation payment to each PAP for each entitlement

8) Timing of vacation of plots by PAPs

9) Details of grievances presented to LGED by particular PAPs, assistance provided,

and status of resolution of each grievance

10) Legally disputed cases and status of litigation

11) Any other unresolved cases

The up-dated database will be developed by PMU. The PMU will

coordinate with different stakeholders participating in the sub-projects financed under

MDF. This database will be used to evaluate on land acquisition performance of each

component and this will be developed into a report twice in an year by the project.

These reports will be incorporated into the relevant project quarterly progress reports.

4.9 Environmental and Social Assessment Report

EA and SA reports should be available to the general public as part of public

consultation process.

EA Report

The structure of EA Report is subject to the type and scale of sub-project, but a

typical EA Report should include at least:

(i) Project Description (objective, component details, project sites,implementation arrangement, etc.)

(ii) Existing Conditions and Baseline Data(iii) Environmental Impacts (positive and negative, direct and indirect,

immediate and long-term.)

(iv) Analysis of Alternatives

(v) Mitigation Plans(vi) Monitoring Activities Required

(vii) Institutional Responsibilities(viii) Public Consultation Process

SA Report

SA Report should cover at least:

(i) Background ( sub-project objective, components and location details)(ii) Executive summary

(iii) Summary of field findings aind analysis;(iv) Recommended options.(v) Annexes

Methodology

Socio-economic profile of sampled sites

Questionnaire

Check-listforfocus group discussions

4.10 Reporting to IDA and Othiers

In order to ensure that MDF-financed sub-projects are in conformity with IDA'srequirements, MDF will have to submit to IDA, for its approval, the followingdocuments for each sub-project at least until completion of MSP: (i) Environmentaland Social Screening Result; (ii) Terms of Reference for EA/SA; (iii) EA/SA Report;(iv) Any Legal Agreements between MDF and Municipalities on Environmental andSocial Issues; and (v) Other Documents that IDA may request. Also, larger projectswith significant environmental imnpacts should be referred to the Department of

Environment (DOE) for concurrent approval.

SECTION 5

MDF'S SUPPORT FOR MUNICIPALITIES ON EAISA

MDF will provide financial and technical assistance for municipalities, upon their

requests, to undertake EA and SA for their sub-projects to be financed by MDF. It is

expected that funds for EA/SA purpose will be given to municipalities on a grant

basis, and MDF will assist municipalities, in the form of technical assistance, in: (i)

preparation of terms of reference for EA/SA; and (ii) selection and appointment of

consultants to undertake EAISA studies and to prepare EA/SA reports.

SECTION 6

MDF'S INSTITUTIONAL CAPACITY ON ENVIRONMENTAL AND SOCIAL

ISSUES

MDF will need to establish an institutional structure to implement the provisions of

this ESF with environmental and social staff. The main objective of development of

MDF's capacity on environmental and social issues is to ensure that projects

submitted for financing conform to ESF. MDF can also appoint consultants, as

necessary, to undertake special assignments related to environmental and social issues.

It is essential that all MDF staff are aware of the importance of environmental and

social issues and familiar with objectives, policies, and procedures of ESF. The staff

will however be required to take a training program regarding environmental and

social issues. Detailed training programs for MDF staff on environmental and social

issues will be developed before MDF becomes operational.