THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA …...Jun 11, 2015 · Resettlement Action Plan (RAP)...

Resettlement Action Plan (RAP)

Kilinto Industrial Zone

Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page i

THE FEDERAL DEMOCRATIC REPUBLIC OF

ETHIOPIA

MINISTRY OF INDUSTRY

RESETTLEMENT ACTION PLAN

KILINTO INDUSTRIAL ZONE

COMPETITIVENESS AND JOB CREATION PROJECT

April 2015

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Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page ii

Table of Contents

ACRONYMS ............................................................................................................................................................... V

EXECUTIVE SUMMARY ..................................................................................................................................... VII

1 INTRODUCTION .............................................................................................................................................. 1

1.1 PROJECT BACKGROUND .................................................................................................................................... 1

1.2 OBJECTIVES OF THE RESETTLEMENT ACTION PLAN ......................................................................................... 2

1.3 GUIDING PRINCIPLES ........................................................................................................................................ 2

2 APPROACHES, METHODOLOGIES AND SCOPE OF WORK ................................................................ 5

2.1 APPROACHES ................................................................................................................................................... 5

2.2 METHODOLOGIES EMPLOYED AND DETAILED SCOPE OF WORK ...................................................................... 5

3 RELEVANT POLICIES, LEGAL AND INSTITUTIONAL FRAMEWORK ............................................. 7

3.1 CONSTITUTION OF FDRE ................................................................................................................................. 7

3.2 POLICIES FRAMEWORK .................................................................................................................................... 7

3.2.1 Constitutional Provision on Land ................................................................................................................... 7

3.2.2 National Policy of Women ............................................................................................................................... 8

3.3 LEGAL FRAMEWORK ........................................................................................................................................ 8

3.3.1 The Rural Land Administration and Utilization Proclamation ....................................................................... 8

3.3.2 Expropriation and Compensation of Property ................................................................................................ 8

3.4 THE WORLD BANK′S INVOLUNTARY RESETTLEMENT POLICY (OP/BP 4.12) ................................................. 11

3.5 GAPS BETWEEN ETHIOPIAN LAWS AND WORLD BANK POLICY ...................................................................... 12

4 INSTITUTIONAL FRAMEWORK FOR RAP IMPLEMENTATION (ORGANIZATIONAL

RESPONSIBILITIES) .............................................................................................................................................. 13

4.1 FEDERAL LEVEL ............................................................................................................................................. 13

4.2 REGIONAL AND LOCAL LEVEL........................................................................................................................ 15

5 SOCIO-ECONOMIC BASELINE STATUS (GENERAL) ........................................................................... 17

5.1 LOCATION AND ADMINISTRATION SETUP ...................................................................................................... 17

5.2 POPULATION AND DEMOGRAPHIC CHARACTERISTICS .................................................................................... 18

5.3 RELIGION, ETHNICITY AND LANGUAGE ......................................................................................................... 18

5.4 ECONOMIC CONDITIONS AND LIVELIHOOD .................................................................................................... 19

5.5 LAND USE AND LAND COVER ......................................................................................................................... 21

5.6 ACCESS TO SOCIAL SERVICES ........................................................................................................................ 21

5.6.1 Access to Health ............................................................................................................................................ 21

5.6.2 Access to Education ...................................................................................................................................... 21

6 SOCIO ECONOMIC CONDITION OF THE PAPS ..................................................................................... 22

6.1 GENERAL ....................................................................................................................................................... 22

6.2 AGE - SEX COMPOSITION ............................................................................................................................... 22

6.3 SOURCE OF LIVELIHOOD OF THE AFFECTED FAMILIES ................................................................................... 22

6.4 RELIGION ....................................................................................................................................................... 22

6.5 HOUSING CONDITIONS OF THE PAPS ............................................................................................................. 23

6.6 LAND HOLDING SIZE ...................................................................................................................................... 23

6.7 CROP PRODUCTION ........................................................................................................................................ 23

7 OVERVIEW OF THE PROJECT .................................................................................................................. 24



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page iii

8 PUBLIC CONSULTATIONS .......................................................................................................................... 27

9 IMPACT ANALYSIS ....................................................................................................................................... 34

9.1 GENERAL (BASIS FOR THE IMPACT ANALYSIS) .............................................................................................. 34

9.2 POTENTIAL POSITIVE IMPACTS ....................................................................................................................... 34

9.2.1 Creation of job and employment opportunity ................................................................................................ 34

9.2.2 Enhancement of capacity building and technology ....................................................................................... 35

9.2.3 Enhancement of market and investment in the construction and service sector ........................................... 35

9.3 POTENTIAL NEGATIVE IMPACTS..................................................................................................................... 35

9.3.1 Impacts of Land Acquisition and Loss of Income Generation ....................................................................... 35

9.3.2 Impact on Farmland ...................................................................................................................................... 36

9.3.3 Impact on Housing Structures and Homesteads (Involuntary Resettlement) ................................................ 36

9.3.4 Disruption of Social and Cultural Ties ......................................................................................................... 37

9.3.5 Impact on Vulnerable Groups ....................................................................................................................... 37

9.3.6 Impact on Public and Community Institutions .............................................................................................. 37

9.3.7 Impact on the Land Use................................................................................................................................. 37

10 PROPOSED MITIGATION MEASURES ..................................................................................................... 38

11 ENTITLEMENT AND ELIGIBILITY OF AFFECTED PERSONS ........................................................... 41

12 COMPENSATION FRAMEWORK AND ASSET VALUATION .............................................................. 46

12.1 APPROACH TO COMPENSATION ...................................................................................................................... 46

12.2 PRINCIPLES OF COMPENSATION ...................................................................................................................... 46

12.3 BASIS FOR VALUATION OF LOSSES................................................................................................................. 47

12.4 THE VALUATION PROCESS ............................................................................................................................. 47

13 LIVELIHOOD RESTORATION PROGRAM .............................................................................................. 50

13.1 IMPLEMENTATION OF AN AWARENESS CREATION PROGRAM .......................................................................... 52

13.2 ORGANIZING THE PROJECT AFFECTED PEOPLE (PAP) IN SME ........................................................................ 52

13.3 PROVIDING FORMAL AND NON-FORMAL TRAINING ......................................................................................... 52

13.4 PROVIDING EMPLOYMENT IN THE INDUSTRIAL ZONE ..................................................................................... 53

13.5 PROVIDING OTHER EMPLOYMENT................................................................................................................... 53

14 GRIEVANCE REDRESS MECHANISM ...................................................................................................... 55

14.1 GRIEVANCES REDRESS PROCEDURES ............................................................................................................. 55

14.2 PUBLIC DISCLOSURE OF RAP ......................................................................................................................... 56

15 MONITORING AND REPORTING PLAN .................................................................................................. 57

16 RAP IMPLEMENTATION SCHEDULE ...................................................................................................... 59

17 RAP IMPLEMENTATION BUDGET ........................................................................................................... 60

18 CONCLUSIONS AND RECOMMENDATIONS .......................................................................................... 61

REFERENCES ........................................................................................................................................................... 62

ANNEX- 1: LIST OF CONSULTED PERSONS (BESIDES CONSULTATION MEETINGS) ........................ 64

ANNEX- 2: MINUTES OF CONSULTATION MEETINGS ................................................................................ 65

ANNEX 3: MINUTES OF MEETINGS .................................................................................................................. 71

ANNEX - 4: LIST OF PAPS, LOSS OF ASSETS AND PROPERTY AND COMPENSATION ESTIMATE . 90



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page iv

ANNEX - 5: MAP OF KILINTO PROPOSED RESETTLEMENT SITE

…………………………………………………………………….…. 99 ANNEX - 6: COPIES OF

DIRECTIVES ON COMPENSATION & LAND ACQUISITION ENDORSED BY ADDIS ABABA CITY

ADMINISTRATION CABINET

…………………………………………………………………………………………………………………………..

100

List of Tables

TABLE 6-1: AGE COMPOSITION OF PAPS ...................................................................................................................... 22

TABLE 7-1: CLASSIFICATION OF ACTIVITIES AND MAJOR COMPONENTS IN KIZ ............................................................ 24

TABLE 7-2: LAND USE PROPORTIONS ............................................................................................................................ 25

TABLE 9-1: LAND ACQUISITION BY KIZ....................................................................................................................... 36

TABLE 10-1: MAJOR TYPES OF RESETTLEMENT LOSS AND MITIGATION MEASURES REQUIRED .................................. 40

TABLE 11-1:ENTITLEMENT MATRIX............................................................................................................................. 41

List of Figures

FIGURE 2-1: CONSULTATION WITH PAPS AT KILINTO .................................................................................................... 6

FIGURE 5-1:LOCATION OF THE KIZ .............................................................................................................................. 17

FIGURE 5-2: HEAPS OF AGRICULTURAL PRODUCE IN ALAN GURA ................................................................................ 20

FIGURE 5-3:HOUSES AT KIZ AT ALAN GURA VILLAGE ................................................................................................ 20

FIGURE 7-2: ALLOCATION OF PARK AND GREEN AREA ................................................................................................ 25

FIGURE 7-1: ALLOCATION OF PROPOSED LAND USES .................................................................................................. 25

FIGURE 8-1: DISCUSSION AT MOI ................................................................................................................................. 28

FIGURE 8-2: MEETING WITH AKAKI KALITY SUB CITY OFFICIALS ................................................................................ 28

FIGURE 8-3: MEETINGS WITH WOREDA 9 AND 10 OFFICIALS ....................................................................................... 30

FIGURE 4-1: FLOW CHART FOR GRIEVANCE REDRESS STEPS ....................................................................................... 55



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page v

ACRONYMS

ADLI Agricultural Development-Led Industrialization

BH Bore Hole

CJCP Compeitiveness and Job Creation Project

CSA Central Statistical AuthorityCSE Conservation Strategy of Ethiopia

EIA Environmental Impact Assessment

EIGS Ethiopian Institute of Geological Survey

EIZDC Ethiopian Industrial Development Zones Corporation

(Currently Industrial Parks Development Corporation)

EPE Environmental Policy of Ethiopia

ESIA Environmental and Social Impact Assessment

ESMF Environmental and Social Management Framework

ESMP Environmental and Social Management Plan

EWRMP Ethiopian Water Resources Management Policy

FDI Foreign Direct Investment

FDRE Federal Democratic Republic of Ethiopia

GoE Government of Ethiopia

GRC Grievance Redress Committee

GTP Growth and Transformation Plan

Ha Hectare

HH Household

IDA International Development Association

IHS Improved Hygiene and Science

IZDESD Industrial Zone Development and Environmental Safeguard Directorate

KIZ Kilinto Industrial Zone

Masl Meters above sea level

MoEF Ministry of Environmental and Forest

MoI Ministry of Industry

MoWIE Ministry of Water, Irrigation and Energy

NGO Non Government Organizations

PAPs Project Affected Populations

PLC Private Limited Company



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page vi

RAP Resettlement Action Plan

RP Resettlement Plan

ToR Terms of Reference

UAP Universal Access Program

WB World Bank

WSS Water Supply and Sanitation



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page vii

EXECUTIVE SUMMARY

Background

The Government of Ethiopia (GoE) has given emphasis to ensuring faster and sustained

development of the industrial sector, as envisioned in the Growth and Transformation Plan

(GTP). The GTP seeks to consolidate the positive development outcomes attained in the last

decade to bring about broad-based and transformative structural changes required to stir the

economy on rapid growth path toward becoming a middle income country by 2025. This

development goal is especially anchored on stimulating rapid growth and structural

transformation of the agricultural and industrial sectors in ways that enhance wealth creation and

expansion of employment opportunities.

As development tools, Industrial Zones (IZs) have been used in several countries to help

stimulate economic development by attracting local and foreign direct investment (FDI),

enhancing competitiveness, and facilitating export-led growth. Through the IZ development

program, the GoE intends to create favorable conditions for private sector and also address

binding constraints in priority industries in potentially suitable towns and cities of the country.

Accordingly, as of recent times, the Government of Ethiopia (GoE) is striving to establish

Industrial Zones that are thought to facilitate and enhance the transformation. The Government in

collaboration with the International Development Association (IDA) of the World Bank is

spearheading an Industrial Zone Development program through the Competiveness and Job

Creation (CJC) Project which is implemented with funds contributed by GoE, the IDA and other

development partners.

The development of the Kilinto Industrial Zone (KIZ) is intended to contribute to job creation by

attracting investments and improving enterprise competitiveness. It is located at about 20 kms

distance from the city centre in the south eastern part of Addis Ababa in Woreda 9 and 10 of

Akaki- Kaliti Sub city, one of the 10 sub cities in Addis Ababa.

Overview of the Project

The project can be described as one of a Mixed Use Industrial Complex where the desired

industrial/manufacturing development is implemented in association with essential business

offices, commercial, customs, recreation and other infrastructure developments to make it a state

of the art Industrial Park. As per the feasibility study and the master plan, four main categories

of industries namely, Food and Beverage, Furniture and Fixtures, Pharmaceutical and Medical,

Electronic/electronics and other miscellaneous manufacturing plants have been recommended

for the Kilinto IZ. The two major categories of industries in KIZ (c.89.9%) will be food and

beverages and pharmaceutical and medical.

Objectives of the RAP

Potential social impacts related to land acquisition such as loss of livelihood or loss of access to

economic assets can only be addressed properly and adequately by the preparation of a

Resettlement Action Plan (RAP) which is the subject of this study. The objectives of the

Resettlement Plan are, therefore, to prevent, minimize and/or at least mitigate the adverse



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page viii

socioeconomic impacts associated with the implementation of the industrial zone development

project. It is to provide a plan for resettlement and rehabilitation of the PAPs so that their losses

will be compensated and their standard of living will be improved or at least restored to the pre-

project levels. To achieve these objectives the plan provides the compensation and rehabilitation

measures required so that the income earning potential of individuals will be restored and their

livelihoods will sustain.

This RAP indicates income restoration measures for the PAPs, and establishes methodologies for

compensation estimate and payment. Therefore, the RAP will facilitate the rehabilitation of

Project Affected Persons and the restoration of their livelihoods. It will help to protect PAPs

from becoming impoverished due to the implementation of the Industrial Zone Development

project.

This RAP is complemented by Environmental and Social Impact Assessment (ESIA) that has

been provided as a separate report which examines key environmental and socio-economic

factors that require consideration.

Approaches and Methodology

The preparation of this RAP is based on the Constitution of the Federal Democratic Republic of

Ethiopia (FDRE) and relevant legislation and regulations as well as the World Bank's

Operational Policies and Procedures OP4.12 and WB OP 4.01, which specifies the procedure

that needs to be followed to address involuntary resettlement in Bank-financed projects.

In the course of preparing this RAP the consultant carried out:

Review of existing policies and development strategies, legal and institutional

frameworks pertaining to the project,

Field level investigation that include household census of PAPs, inventory of properties

and assets of the affected households, assessing the livelihood of PAPs,

Identification of the most appropriate social management and monitoring action plan,

which will ensure that reinforcement measures for the positive impacts and the mitigation

of adverse social impacts are fully addressed in line with World Bank’s OP4.12

Consultations

Consultations were carried out with the PAPs and other pertinent stakeholders. Consultations

with the PAPs mainly focused on the potential positive social benefits accruing from the

implementation of IZD project and also the valuation of property as well as compensation

estimate for each of the affected households. It was also concerned about the views and opinions

of the PAPs regarding the potential negative impacts and possible mitigation measures as well as

the participation of the PAPs in this regard. To this effect, stakeholder analysis was also carried

out to identify and characterize the PAPs. Subsequent consultations were also held with the

stakeholders, which included different institutions as well as grassroots level stakeholders. The

main objectives of the consultations made with the stakeholders of the KIZ project were to

obtain their views, concerns, and recommendations so as to incorporate into the project design

and to enhance the environmental and social performance of the project.



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page ix

Number and Category of Project Affected Populations

The implementation of Kilinto Industrial Zone will involve the dispossession of farmlands and

grazing land of 245 farming households which consists of 161 male and 84 female headed

hosueholds. The 245 Households comprised of 1,225 individuals or PAPs residing within the

308ha of land incorporated by Kilinto Industrial Zone. From these households, only 15

households will have to be relocated.

Resettlement Action Plan

Past experiences with similar projects indicate that, unless adverse social impacts such as

resettlement and relocation of PAPs are mitigated, the project might lead to severe socio-

economic impacts, like loss of income and assets, loss of farm lands, loss of trees (perennial and

other types) and other related socio-cultural problems.

Thus, this RAP has been developed in line with OP4.12, and addresses the involuntary

resettlement issues likely to arise during the implementation of the KIZ project. The RAP

provides an entitlement framework, implementation procedures, institutional arrangements,

monitoring requirements and grievance redressing mechanism. Therefore, in this resettlement

action plan different types of mitigation measures such as compensation in cash for lost

farmlands and grazing lands, resettlement of dislocated households as well as livelihood

restoration actions, etc, has been recommended.

Institutional Arrangements

Institutions and organizations have to play their respective roles in the management of the RAP

with respect to social issues which might arise during the construction and operation of the KIZ

development.

Accordingly, the Federal Ministry of Industry (MoI) and its subordinate i.e. the Ethiopian

Industrial Development Zones Corporation (EIDZC), Competitiveness and Job Creation Project

(CJCP) and the Addis Ababa City Administration are all responsible for the successful

implementation of this RAP. MoI will have overall responsibility for the managment and budget

allocation for RAP implementation as well as for the oversight, coordination, monitoring and

evaluation of IZ related project activities. Besides, MoI will ensure the overall quality and

timeliness of project implementation; including compliance with all aspects of the IZDP's

Operational Manual to be prepared.

Addis Ababa City Administration and Akaki Kality Sub city are directly responsible for the

execution of compensation payments, preparation of the resettlement site and other resettlement

assistances for PAPs, as well as in providing support for vulnerable groups, etc. The Industrial

Zone Development and Environmental Safeguards Directorate (IZDESD), which is structured

under the EIZDC is directly responsible for the review, monitoring, supervision and

implementation of this RAP and the timely realization of mitigation measures.



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page x

At Woreda level, Akaki-Kality Woreda 9 and 10 Administration Offices, the Woredas

Agriculture and Rural Development Offices, the Kebele Administrations, and the community

leaders or elders will also play very important roles in implementing the RAP through the

resettlement implementation committee and grievance redress committee set as per regulations

and guidelines.

Entitlement Framework

An entitlement matrix which defines the eligibility for compensation and rehabilitation

assistance for different categories of project affected persons is included in this RAP.

Accordingly, all persons affected by land acquisition, and loss of houses and other assets, are

entitled to a combination of compensation measures, resettlement assistance and livelihood

restoration activities. However, a person who occupies the land after the cut-off date (July 31,

2014) i.e. after the completion of the census of affected households will not be eligible for

compensation associated with the loss of any kind of new asset formations and /or new claim for

resettlement and rehabilitation provisions.

Grievance Redress Mechanism

An inventory of assets and properties of project affected people has been made and asset

valuation and registration have been conducted in the presence of the PAPs and the resettlement

committees. This is expected to reduce the chances of disputes. Nevertheless, a conflict

resolution mechanism has been designed to resolve potential disputes that may arise during RAP

implementation. To this effect, a grievance redress committee has been established that includes

a representative of the Woreda Administration - as Chairman of the Committee, a Representative

of the Woreda Agriculture and Rural Development Office, a Representative of the Kebele

Administration, two Representatives of PAPs, and an Elder from the local community. The

committee’s duty is to hear complaints and facilitate solutions so as to promote early dispute

settlement through mediation to reduce litigation.

Resettlement Action Plan Budget

The cost estimate for implementing the RAP is made based on the requirements of proposed

mitigation activities. Assessments and estimates were made in consultation with relevant

stakeholders mainly in calculating budget requirements for different livelihood restoration

activities such as training and capacity building requirements, business plan supports, etc, that

need to be implemented. Accordingly, the total budget estimate of the RAP is Birr 67,584,207.00

(Sixty seven million five hundred eighty four thousand and two hundred seven Birr only).

The following table summarizes the total amount of the funds required for the implementation of

this RAP.

Table 0.1: Cost Estimate (budget) for the RAP



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page xi

No. Cost Item Cost Estimate in

Eth. Birr Remarks

1. Compensation for permanent loss of farm land 53,297,556.00 Replacement cost based

on current market price

for loss of income

2 Compensation for permanent loss of grazing land 621,740.00 Replacement cost for

loss of income

3 Cost estimate for housing and other structures

(building cost )

1,046,992.60 Replacement cost based

on current market price

4 Cost estimate for house rent of 12 months for 15 hhs 576,000.00

5 Transport and mobilization for 15 households who

require resettlement

7,500.00 15x500= 7,500.00

6 Cost estimate for livelihood restoration programs

(orientation, skill training and other capacity building

programs for 245 PAPs), health and safety

sensitization programs, etc.

245,000.00 Average cost for 25

trainees per month is

around Birr 25,000.00

(Birr 1000.00/head

from TVET)

7 Cost for other awareness and sensitization programs 50,000.00 Lump sum

8 Support for vulnerable groups (105 PAPs) 100,000.00 Lump sum

9 Cost for need assessment study to identify additional

livelihoods restoration measures

125,000.00 Lump sum

10 Loan fund for establishment of 245 businesses based

on agricultural production (fattening, dairy cows,

chicken farm, mushroom production, irrigation

agriculture, etc) preferred by PAPs as per survey

result. 80% of (30,000x245= 7,350,000)

5,880,000.00 Based on Birr 30,000

average business

establishment cost given

by the office of micro

and small scale

enterprises.

11 Cost estimate for monitoring and evaluation, and

supervision

50,000.00 Lump sum

Total 61,440,188.60

10% contingency 6,144,018.86

Grand Total 67,584,207.46

Monitoring and evaluation

In order to successfully complete the resettlement action plan as per the implementation schedule

and the entitlement matrix, and in compliance with the World Bank policy on involuntary

resettlement, monitoring and evaluation of the RAP implementation is mandatory. A Monitoring

and Evaluation Program that includes internal and external monitoring that has to be regarded as

a continuously evolving process has been proposed as part of this RAP. Project Implementation

Units both at the MoI and at Woreda levels shall play key roles in reporting the progress of

implementation as well as monitoring compliance with this RAP. A lump sum cost estimate of

Birr 50,000.00 has been budgeted for such purpose.

Disclosure

This RAP shall be disclosed in-country to the general public for review and comment before it is

approved by the Bank at designated locations and in World Bank Info Shop.



Ministry of Industry, Addis Ababa, Ethiopia April 2015 Page 1

1 Introduction

1.1 Project background

The GoE has given emphasis to ensuring faster and sustained development of the industrial

sector, as envisioned in the Growth and Transformation Plan (GTP). The GTP seeks to

consolidate the positive development outcomes attained in the last decade to bring about broad-

based and transformative structural changes required to stir the economy on rapid growth path

toward becoming a middle income country by 2025. This development goal is especially

anchored on stimulating rapid growth and structural transformation of the agricultural and

industrial sectors in ways that enhance wealth creation and expansion of employment

opportunities in the economy.

Accordingly, as of recent times, the Government of Ethiopia (GoE) is striving to establish

Industrial Zones that are thought to facilitate and enhance the transformation. The Government in

collaboration with the International Development Association (IDA) of the World Bank is

spearheading an Industrial Zone Development program which is implemented with funds

contributed by GoE, the IDA and other development partners. The Ministry of Industry (MoI),

with the support of the World Bank’s International Development Association (IDA) plans to

support the Government’s Industrial Zones (IZ) program through the Competiveness and Job

Creation (CJC) Project.

The proposed Kilinto Industrial Zone (KIZ) is one of such development programs which is

planned to be developed on a total area of 308ha. The development objective of the proposed

project is to contribute to job creation by attracting investments and improving enterprise

competitiveness in the targeted industrial zones (IZ). Based on the feasibility and master plan

studies, the recommended industries comprised of food and beverages, furniture and fixtures,

pharmaceutical and medical, electric/electronics and miscellaneous manufacturing.

However, the development of the Industrial Zones can have both positive and negative bio-

physical and social impacts unless they are implemented by giving due emphasis to the

protection of the environment in general and the wellbeing and livelihood of the population in

and around the project area in particular. Therefore, as a matter of policy and regulations of the

Ethiopian Government and the World Bank, a Resettlement Policy Framework (RPF),

Environmental and Social Management Framework (ESMF) and an Environmental and Social

Impact Assessment (ESIA) of KIZ have already been prepared.

Further to the RPF, this site specific Resettlement Action Plan has now been prepared to address

the impacts that the establishment of the KIZ will have on the wellbeing and livelihood of the

Project Affected Populations (PAPs) and their surroundings because of the expropriation of

agricultural land, dislocation of settlements and other related impacts, and so as to plan the

required livelihood restoration and community development measures.

This Resettlement Action Plan (RAP) prepared for the proposed KIZ, is intended to fulfill policy,

legal and guideline requirements of both the Ethiopian Government and the World Bank. This

Resettlement Action Plan is based also on the outcome of the RPF and ESIA study.




1.2 Objectives of the Resettlement Action Plan

The objective of this Resettlement Action Plan is to provide a plan for resettlement and

rehabilitation of the PAPs so that their losses will be compensated and their standard of living

will be improved or at least restored to the pre‐project levels. To achieve this objective the plan

describes the compensation and rehabilitation measures required so that the income earnings

potential of individuals will be restored and their livelihoods will sustain. Specifically, this RAP

has been developed in order to:

provide details on the legal framework governing land expropriation, valuation methods,

compensation payment, eligibility entitlements, etc. for the project affected persons

(PAPs),

assess the type and magnitude of resettlement

identify the PAPs

provide dissemination, public consultation and participation, and grievance redress

mechanisms, project planning and implementation;

define institutional and implementation arrangements

provide a framework for supervision, monitoring and evaluation of resettlement

implementation

define the monitoring and evaluation requirements, and

provide the cost estimates for the RAP implementation.

1.3 Guiding principles

In order to comply with pertinent policies, rules and regulations of the Ethiopian Government

and the World Bank’s Operational Policy on Involuntary Resettlement as well as international

best practices, the following guiding principles have been adhered to in preparing this plan.

Resettlement must be avoided or minimized

To comply with the principle, MoI and the Addis Ababa City Administration through their

preceding assessments and studies have designed the project so as to cause the least possible

displacement and/or disruption.

Genuine consultation must take place

Given its focus on resettlement, the primary concern is to take seriously the rights and interests

of the Project Affected Population (PAPs) not only during preparation, but also during the

implementation of this RAP. For this to take place, their voices need to be made clear via the

formation of local level consultative forum. The tasks have been co‐coordinated by the MoI

which assigned an independent consultant and by the Addis Ababa City Administration via the

Sub city personnel and with the support of relevant institutions.

Establishment of a pre‐resettlement baseline data

To support the successful compensation for affected property, an inventory of landholdings and

immovable/non‐retrievable improvements (buildings and structures) as well other assets has been




undertaken prior to displacement i.e. to determine fair and reasonable levels of compensation or

mitigation

Compensation for loss, and assistance in relocation must be made available

As per consultations made, MoI guarantees the provision of all necessary compensation for

people and institutions whose properties and fields will be disturbed to make way for the

construction and operation of the KIZ (including all categories of industries and other supporting

facilities etc.), or any other disturbances of productive land associated with the project in

proportion to their loss. Furthermore, relocation assistance will be provided to those

disadvantaged households that will have to move.

A fair and equitable set of compensation options must be provided

Compensation for structures, land and trees that are disturbed will be based on current market

price at full replacement cost. Due attention will be given to the vulnerable groups including

women.

Resettlement must take place as a development that ensures PAPs benefit.

In order for resettlement to take place, prior concern should be made for the PAPs’ benefit.

Where practical, the employment opportunities that arise from the project will be made available

to the project affected population. A concerted effort shall be made for the implementation of

community development and livelihood restoration measures. In this regard, Addis Ababa City

Administration in conjunction with the MoI and other pertinent institutions shall work to make

sure that PAPs benefit from the upcoming development.

Vulnerable social groups need special attention and care

Members of vulnerable groups (women, female headed households, elderly, widow, orphan,

people with disability, the infirm or ill, etc.) are often not able to make their voice heard

effectively, and proper account has been taken of this during the consultation and planning

processes. This effort will also be strengthened in establishing grievance procedures. In this

respect, it has been ascertained during consultations with respective officials at different levels

that such vulnerable groups will receive due care in the whole process of RAP implementation in

such a way that they will secure the necessary protection to ensure equitable access to

compensation and replacement resources (for the budget see Table 0-1 above).

Resettlement must be seen as an upfront project cost

Experience across the world shows that unless resettlement is built in as an upfront project cost,

it tends to be under-budgeted, that money gets whittled away from the resettlement budget to

‘more pressing’ project needs, and that it tends to be seen as peripheral to the overall project. The

MoI has to be able to allocate the required budget for RAP while at the same time it oversees

(follows and monitors) the overall implementation as well as render required capacity

development to the main actors of this RAP. Readiness and preparations necessary on the part of

the Addis Ababa City Administration and pertinent Sub city and woreda level offices have to be

ensured for the implementation of this RAP. In this regard, it has been confirmed during the




consultation processes that the city Administration has been making efforts to ascertain not only

the replacement cost but also other recommended livelihood restoration measures to be

implemented appropriately. Table 0-1 provides a summary of the budget for implementing this

RAP.

An independent monitoring and grievance procedure must be in place.

In addition to internal monitoring that will be provided by Addis Ababa City Administration, the

Sub city and the project Woredas, an independent team comprising representatives from the local

Administration and the local population will undertake monitoring of the resettlement aspect of

the project. Monitoring will specifically take place via measurement against the pre‐resettlement

database. A grievance redress committee has also been established that includes representative of

the Woreda Administration - as Chairman of the Committee, representative of the Woreda

Agriculture and Rural Development Office, a representative of the Kebele Administration, two

representatives of PAPs, and an Elder from the community. Their duty is to hear complaints and

facilitate solutions so as to promote dispute settlement through mediation to reduce litigation. As

per the resettlement guideline of the Addis Ababa City (Guideline No. 3 2010), Office for

Compensation Study and Implementation Appropriateness Audit has also been established.

World Bank’s operational procedure on Involuntary Resettlement

The World Bank′s Operational Policy on Involuntary Resettlement (OP/BP 4.12) will be

adhered to. The objective of this policy is to ensure that the development process takes measures

to (i) avoid or minimize involuntary resettlement where feasible, exploring all viable alternative

project designs; (ii) assist displaced persons in improving their former living standards, income

earning capacity, and production levels, or at least in restoring them; (iii) encourage community

participation in planning and implementing resettlement; and (iv) provide assistance to affected

people regardless of the legality of land tenure.

It requires that involuntary resettlement be avoided where feasible, or minimized, exploring all

viable alternative project designs. Where it is not feasible to avoid resettlement, resettlement

activities should be conceived and executed as Sustainable Development Programs, providing

sufficient investment resources to enable the persons displaced by the project to share in project

benefits. Displaced persons should be meaningfully consulted and have opportunities to

participate in planning and implementing resettlement programs. They should also be assisted in

their efforts to improve their livelihoods and standards of living or at least to restore them, in real

terms, to pre‐displacement levels or to levels prevailing prior to the beginning of the project

implementation, whichever is higher.




2 Approaches, methodologies and scope of work

2.1 Approaches

To prepare this RAP, discussions and consultations were conducted at different levels starting

from the pertinent directorates and departments at the Ministry of Industry (MOI) down to the

level of the Project Affected Populations (PAPs) in the project communities. The participatory

approach served as a platform to jointly identify the potential positive and negative outcomes

and enhancement and mitigation measures respectively. It helped in defining the roles and

responsibilities of different stakeholders and the required resources in the process of the

preparation and implementation of the RAP.

A combination of both a quantitative and a qualitative approach was used to collect data for

the assessment in order to close gaps that can emanate from the exclusive use of either one or the

other due to the merits and demerits of each data collection methods. However, within the

context of this proposed IZ project, the qualitative approach, which is more flexible and allows

for exploration of issues that emerge during the fieldwork, was employed more. This allowed the

Consultant to tap into the diverse perspectives of multiple stakeholders. “Triangulation”, using

various informants, data collection methods and settings, was used to cross -check on the

validity of findings.

An Integrated and Holistic Approach was utilized for the preparation of this RAP. Impact

identification and analysis becomes more comprehensive and complete when it assesses all steps

and activities involved in a given operational process of a project and the inter-linkages between

them. Therefore, instead of assessing each project component separately, the approach to the

assignment was designed in such a way that it assesses the impacts and the RAP measures in the

light of their linkages and integration.

2.2 Methodologies employed and detailed scope of work

The methodologies and detailed scope of work used in conducting the RAP study are discussed

below.

Field Surveys: The RAP consultant made repeated field surveys basically for the

observation and understanding of the baseline environment and the without project

situation in both biophysical and socioeconomic terms. The consultant has used 1:50,000

topographic sheets and a location map of the proposed Kilinto Industrial Zone (KIZ)

prepared by the MoI to assess the existing biophysical (topography, slope, vegetation

cover, etc and socioeconomic (settlements, major economic activities, land use, etc)

within the proposed site and the surroundings. The consultant has used GPS readings of

coordinates of the boundaries of the proposed site for the preparation of the location map,

catchments and watershed map, settlement, existing land use and the like. This was very

important since it clearly depicted the without project situation upon which the

implementation of the IZ is to be superimposed for the identification, understanding, and

assessment of the likely positive and negative impacts.

Interviews and discussions with specialists: Potential project impacts in terms of

socioeconomic impacts, particularly with respect to land acquisition, expropriation of

property and the resulting livelihood impacts have been discussed with relevant




specialists and experts working in the area of resettlement and livelihood restoration

programs with and without the project area. Master plan experts were also consulted.

Literature and document review: Information on existing socioeconomic conditions

was obtained from review of various published and unpublished sources including the

recently accomplished Environmental and Social Management Framework (ESMF) and

Resettlement Policy Framework (RPF) of the Bole Lemi and Kilinto Industrial Zones. In

addition, review of studies including pre-feasibility study of the Bole Lemi Industrial

Zone Project, the World Bank Safeguard Policies, ESMF and the mid- term guidance was

made. Review of recent World Bank Reports on the area such as Benchmarking and

Demand Forecast Reports, Global documents and ESIA reports on IZs, etc. was made.

Available relevant data and information in MoI and Akaki Kality Sub city, Woreda

Administrations such as data on land acquisition, and records of number of PAPs, list of

PAPs prepared on their part were reviewed for comparison and rectification with results

of survey conducted by the Consultant. Similarly, institutional and organizational setups

as well as objectives, mandates, plans, performances, etc, of the different offices in the

Sub city such as the Small Scale and Micro Enterprise, Technical and Vocational

Educational Training (TVET), etc have been reviewed.

Competent authority guidelines: The Federal and regional legislative and institutional

framework, policies, procedures, guidelines etc. were reviewed. In particular EPA and

World Bank guidelines were reviewed and adhered too in as much as possible.

Participatory analysis which includes:

- Consultation with relevant federal, regional and local authorities: As

explained above under the participatory approach interviews and discussions with

several local authorities and stakeholders were carried out in the project area. This

includes consultation with Ministry of Industry, Akaki Sub city Administration,

Woreda 9 and 10, which are the lowest Administration units.

- Community consultation: Community consultation meetings were conducted

for both Woreda 09 and 10 to draw together the issues and concerns of

stakeholders and project affected parties. A brief introductory note containing

brief description of the project, its positive and negative impacts was presented by

the consultant to stimulate their participation in the discussion.

Figure 2-1: Consultation with PAPs at Kilinto




3 Relevant Policies, Legal and Institutional Framework

3.1 Constitution of FDRE

Constitution of the Federal Democratic Ethiopia Proclamation 1/1995 contains several relevant

policy legal and institutional provisions that have direct relevance for the expropriation

procedures for those people who might be affected by the proposed project. The constitution

addresses the land ownership and holding right in article 40.3 of the constitution, which provides

the right to ownership of both rural and urban land as well as natural resources to government

and the people of Ethiopia.

It further states that land is the common property of Ethiopian people and cannot be subject to

sale or to other means of exchange. In addition, article 40.5 of the constitution guarantees the

right of farmers to obtain land without payment and protection against eviction from their

possession. The detailed implementation of this provision is to be specified by subsequent laws.

Hence, the rural and urban dwellers have only usufruct right over land. This right gives to a

person, the right to use the land and benefit from the fruits of his /her labor, which may be crops,

trees, and other investments found on the land or any permanent works such as buildings etc,.

Any interference with the usufruct rights, such as expropriation, shall entail compensation. This

is clearly provided in article 40.7 of the constitution which says that every Ethiopian shall have

the right to the immovable property like buildings, irrigation structures, etc and to other fixed

structures or permanent improvement that s/he has brought about on the land by his/her own

labor or capital. This right shall include the right to alienate, to bequeath, and, where the right to

use expires, to remove from his property, transfer his title, or claim to compensation for it. The

owner of that right is entitled to compensation. The detailed implementation will be effective as

determined by the law and regulations.

Article 40.8 of the Ethiopian Constitution strengthens this by providing for expropriation of

private property for a public purpose which requires advance payment of compensation.

3.2 Policies Framework

3.2.1 Constitutional Provision on Land

The Constitution of the Federal Democratic Republic of Ethiopia (FDRE) states that the right

to ownership of rural and urban land, as well as all natural resources, is exclusively vested in

the State and People of Ethiopia. Article 40 of the Constitution indicates that land is a

common property of the Nations, Nationalities and the People of Ethiopia, and shall not be

subjected to sale or to other means of transfer.

The Constitution of FDRE retained land under the control of the people and government of

Ethiopia thus, prohibiting buying and selling. Also article 4(5) of the Proclamation 94/1994

deals with provision of land for the conservation, development and utilization of state forests

or protected areas. However, this can be effective only after the consultation and consent of

the peasantry and subject to the assurance of their benefits.




In general, all legal provisions cited above, make lands the property of the People and

Government of Ethiopia, and buying and selling of land is prohibited but leasing rights is

allowed. Moreover, it is the right for existing land use right holder to be compensated fully

and satisfactorily if land is expropriated by the state.

The Land Policy of Ethiopia strongly supports that projects plan must include attractive and

sustainable resettlement strategies to the people who are going to be displaced as a result of

the development plan, and that they have to be fully convinced, compensated and participate

in all phases of the project implementation.

This RAP is in line with the above provision.

3.2.2 National Policy of Women

The national Policy of the Ethiopian Women was issued in March 1993. In this policy, it is

indicated that government policies, laws, regulations, plans, programs and projects should be

based on the following objectives:

- To ensure participation of women in the formulation of government policies, laws,

regulations, programs and projects that directly or indirectly benefit and concerns women

- To ensure participation and involvement of women in implementation and decision

making processes

- To ensure equal access of men and women to the country’s resources

3.3 Legal Framework

3.3.1 The Rural Land Administration and Utilization Proclamation

The constitution of FDRE leaves the detailed implementation of the provisions concerning tenure

rights over rural land to be determined by subsequent specific laws to be issued at both the

federal and regional levels. Accordingly, the Rural Land Administration and Land Use

Proclamation No. 456/2005 was issued in 2005 to further determine the land use system and land

use rights in the country or at the federal level. The proclamation provides that land

Administration laws to be enacted by regions should be based on the provisions provided therein

and specifies the basic principles of rural land distribution and utilization including the scope of

land use rights which regional laws should grant. Accordingly, in matters of acquisition and

compensation of land, it should be noted that the federal law applies to the Addis Ababa City

Administration.

3.3.2 Expropriation and Compensation of Property

Land tenure

As already indicated, according to the Constitution of December 1994, Land holding right came

under the control of the people and government of Ethiopia. Article 40 states that ownership of

both urban and rural land is vested in the state and the people, a common property which is not

subject to sale or other means of exchange. Peasants have the right to obtain land without

payment and are protected against eviction from land in their possession.




Expropriation

According to the Constitution of FDRE, full right to immovable property and permanent

improvement to the land is vested in individuals who have built the property or made the

improvements but Government may expropriate such property for public purpose, subject to the

payment in advance of compensation commensurate to the value of the property or alternative

means of compensation including relocation with adequate state assistance. Thus, project plans

would have to include an attractive and sustainable compensation strategy, offering adequate

compensation and incentive to the loss of livelihood.

The Proclamation on Expropriation of Land and Compensation No 455/2005 implied and

repealed the outdated provisions of the Ethiopian civil code of 1960 on “regulations land

acquisitions and compensation for the purpose of public project”. which established detailed

procedures setting the time limits within which land could be acquired after a request is received

from a project proponent, and includes principles for assessment for compensation of properties

on the land as well as for displacement compensation.

It also empowered Woreda Administrations to establish valuation committees to value private

properties. In the case of publicly owned infrastructures to be removed the barriers for planned

land acquisition, substantially raised the amount of compensation payable to expropriated owners

of properties and displaced people.

Regulation No 135/2007 on “payment of compensation for property situated on land holdings

expropriated for public purpose” has also been issued for the proper implementation of the

Proclamation No. 455/2005 on “Expropriation of land holdings for public purposes and payment

of compensation”. These regulations were issued for the purpose of not only paying

compensation but also to assist displaced persons to restore their livelihoods. These regulations

set forth details to determine the amount of compensation for different assets found on land

holdings expropriated for public purposes and stipulate the formula to calculate the amount of

compensation payable for different assets.

Compensation

The Government issued Proclamation in July 2005 on the “Expropriation of landholding for

public purposes and payment of Compensation” Proclamation No. 455/2005. The objective of

the proclamation was to define the basic principles that have to be taken into consideration in

determining compensation to a person whose landholding has been expropriated.

The proclamation indicates certain procedures to be followed during the expropriation of

landholdings.

Power to expropriate Landholding: Woreda or an urban Administration shall upon payment in

advance of compensation, have the power to expropriate rural or urban holdings for public

purpose where it should be used for a better development projects to be carried out by public

entities, investors.

Notification of expropriation order: In this context the landholders will be notified in writing,

when they should vacate and the amount of compensation to be paid to them. The period of

notification to be given shall be determined by directives, it may not, in any way, be less than 90




days. The landholder shall handover the land to the Woreda or urban Administration within 90

days from the date of payment of compensation.

The responsibility of the implementing Agency, as defined in the proclamation, includes

preparing detailed data pertaining to the land needed for its works and give notice to the organs

empowered to expropriate land and pay compensation to landholders whose holdings will be

expropriated.

As per Article 7 of the Proclamation, the amount of compensation is based on certain conditions,

which include:

The landholder whose holding has been expropriated shall be entitled to payment of

compensation for his property situated on the land and permanent improvements s/he

made to such land;

The amount of compensation for the property shall be determined on the basis of

replacement cost of the property, and if it is in urban area, it may not, in any way be

less than the current cost of constructing a single room low cost house.

Compensation for permanent improvement to land shall be equal to the value of

capital and labor expended on fixed asset development on the land. In addition, costs

of removal, transportation and erection shall be paid as compensation for any

property that could be relocated and continue its services as before.

It has been also indicated in the Proclamation Article 8, that the displacement compensation shall

be paid within the following condition:

A rural landholder whose landholding has been permanently expropriated, shall in

addition to compensation under Article 7, be paid displacement compensation which

is equivalent to ten times the average annual income he secured during the five years

preceding the expropriation of the land.

A rural landholder or holders of communal land whose landholding has been

temporarily taken shall, in addition to compensation under Article 7, be paid until

repossession of the land, and also for lost income based on the average annual income

secured during the five years preceding the expropriation of the land, however, such

payment shall not exceed the amount of compensation payable under the above bullet

point.

An urban landholder whose holding has been expropriated shall be provided with a

plot of urban land, and be paid displacement compensation based on current market

price at replacement cost for the demolished houses. The same also applies for

commercial buildings to be demolished.

As per policy and regulations, the valuation of property of the KIZ was done by a Consultant

from Metaferia Consulting Engineers PLC which is a certified private firm. The work was done

in collaboration with the Woreda and Sub city Administration as well as the participation of the

PAPs. The valuation of property situated on land to be expropriated was done on the basis of

valuation formula adopted at the national level (Proclamation No. 455/2005) which is also

reflected in the regulation (Regulation No. 135/2007) and subsequent guidelines (Guideline No.

3/2010, No. 3/2012 and No. 3/2014) of Addis Ababa City Administration which have been




developed to manage the compensation and valuation of land, housing and other properties (See

Annex 6).

Any measurement of farmland and grazing land, assessment of other property is conducted by

qualified surveyors from the Sub city in the presence of the already established Resettlement

Committee and the PAPs or their representatives. Proclamation No. 455/2005, Article 8 has also

indicated who should be committee members during valuation of properties to be affected, and

stated as follows, the Woreda Administration where the land to be expropriated is located in rural

areas, shall assign a committee of not more than five experts having the relevant qualification

and if the land is located in urban area, the urban Administration shall do the same for valuating

property. If the land to be expropriated requires specialized knowledge and experience, a

separate committee of experts to be designated by the Woreda or urban Administration shall

value it.

As per the proclamation, complaints and appeals in relation to compensation payments for PAPs

are being dealt as follows:

Any complaint or grievances related to the valuation of assets and property or amount

of compensation of the PAPs is being submitted to the Grievance Redress Committee.

The above organ shall examine the complaint and give its decision within short

period of time as specified by directives issued by the City Government.

The party dissatisfied with the decision rendered above may appeal to the regular

appellate court or municipal appellate court within 30 days and it will be the final

decision.

Issues related to appropriate heir are being dealt by regular court having jurisdiction.

The execution of an expropriation order may not be delayed due to a complaint

regarding the amount of compensation.

In the course of implementing the proclamation, the Ministry of Federal Affairs has the duties

and responsibilities, of following-up and ensuring that the provisions of the proclamation are

complied with within a region, giving technical and capacity building support to regions.

Besides, in collaboration with other organs of the federal government, the Ministry of Federal

Affairs is also responsible for preparing national valuation formula for the determination of

compensation payable under this proclamation, and for submitting the same to the Council of

Ministers for approval. While the Woreda and Urban Municipal Administrations have the

responsibilities and duties of paying or causing the payment of compensation to holders of

expropriated land and providing them with rehabilitation support to the extent possible and

maintaining data of properties removed.

3.4 The World Bank′s Involuntary Resettlement policy (OP/BP 4.12)

The objective of this policy is to ensure that the development process fosters and to (i) avoid or

minimize involuntary resettlement where feasible, exploring all viable alternative project

designs; (ii) assist displaced persons in improving their former living standards, income earning

capacity, and production levels, or at least in restoring them; (iii) encourage community

participation in planning and implementing resettlement; and (iv) provide assistance to affected

people regardless of the legality of land tenure.




This policy covers not only physical relocation but any loss of land or other assets resulting in:

(i) relocation of loss of shelter; (ii) loss of assets or access to assets; (iiii) loss of income sources

or means of livelihood, whether or not the affected people must move to another location. This

policy also applies to the squatters and involuntary restriction of access to legally designated

parks and protected areas resulting in adverse impacts on the livelihoods of the displaced

persons.

The Resettlement Policy Framework (RPF) prepared for the KIZ requires a proponent (in this

case the MoI) to prepare a Resettlement Action Plan (RAP) to address involuntary resettlement.

Consistent with the RPF, this RAP must be implemented before the start of any civil works.

3.5 Gaps between Ethiopian Laws and World Bank’s Policy

There are significant gaps between Ethiopian laws and regulations and the requirements for

involuntary resettlement as laid out in the World Bank’s OP 4.12.The Ethiopian laws and

regulations are not completely compatible with the Bank’s OP 4.12 provisions. Below is a short

discussion of the most important differences.

While OP 4.12 requires that compensation be completed prior to the start of the project, there are

no similar time tables set out in Ethiopian laws or regulations. Additionally, there is no provision

for relocation assistance, transitional support, or the provision of compensation for loss of civic

infrastructure under Ethiopian law. Additionally, Ethiopian law does not make any specific

accommodation for squatters or illegal settlers, other than recognition of some use-rights, such as

when settlers can claim rights to the land.

OP 4.12 requires that affected communities be consulted regarding project implementation and

resettlement. Affected communities should also receive the opportunity to participate,

implement, and monitor resettlement. However, Ethiopian law states that, when it is determined

that a right of way must be established, the expropriation rights of the State take precedence,

although the Constitution protects the individual’s use-rights.

No specific provision is made in Ethiopian law to accommodate the potential adverse impacts of

involuntary resettlement and taking of land for vulnerable groups such as women, children, the

elderly, historically disadvantaged ethnic minorities, the landless, and those living under the

poverty line. These groups are at highest risk to experience negative effects due to resettlement,

and should receive special consideration to assure that they can maintain at least the same

standard of living after the taking of land takes place.

Finally, in contrast with OP 4.12, there is also no provision in the law that the state should

attempt to minimize involuntary resettlement. However, this appears to be implicit in the

Constitution of the country. Where there is difference between OP 4.12 and the Ethiopian law,

the World Bank’s OP 4.12 shall prevail.




4 Institutional Framework for RAP Implementation (organizational

responsibilities)

Effective and successful implementation of the RAP ultimately depends upon issues related to

the institutional and organizational arrangements made for its implementation. Experience shows

that even well designed RAPs (and other similar projects) fail to achieve their objectives mainly

because of inadequate institutional arrangements for their implementation. Full commitment on

the part of the implementing agency in terms of establishing the necessary institutional

arrangements and providing adequate incentives and resources (budget, manpower, etc) is very

important. To this effect, institutions both at federal, regional and local level need to work in

harmonization.

4.1 Federal Level

Ministry of Industry (MoI) and its Organs

At the federal level, the Ministry of Industry (MoI) and its organ the Industrial Zone

Development and Environmental Safeguards Directorate (IZDESD), will be responsible for

supervising the activities of Competitiveness and Job Creation (CJC) Project, which is

established to contribute to job creation by attracting investments and improving enterprise

competitiveness in the targeted industrial zones. MoI provides overall policy guidelines and

coordination at the Ministerial level and also provide adequate governance and management.

With respect to the implementation of the RAP, it is the objective of the Ministry of Industry

(MoI), to avoid or reduce the environmental and social impacts of its industrial zone

development projects to a minimum level. As per the already approved Resettlement Policy

Framework (RPF), MoI will, among other things, have the responsibility for the allocation of the

budget for the RAP and overall responsibility in the oversight, coordination, and monitoring and

evaluation of project activities. MoI, therefore, will ensure the overall quality and timeliness of

project implementation, including compliance with all aspects of the IZDP Operational Manual.

EIZDC

The EIZDC will serve as the coordinating body across Federal and the different local industrial

zone sites. EIZDC is expected to have an Environmental and Social Safeguards Directorate

within its structure whose responsibility will include:

Appraisal and montoring of the RAP with the City/Sub city as required

Monitor and Evaluate the implemention of the RAP

Provide technical and logistic supports and capacity building through training and related

activities, etc.

To effectively implement this RAP, MoI through its EIZDC shall make sure that adequate

budget is allocated for compensation before the project implementation (see Table 0-1 for the

budget).

.




Competitiveness and Job creation (CJC) Project Coordination Office

CJCP, which is established under the MoI, is responsible for the administration and

implementation of this RAP. The project office will manage the following two crucial activities

related to the RAP: coordinating, supervising and monitoring its implementation and identifying

adverse social impacts associated with IZDPs. CJC is, therefore, expected to conduct regular

monitoring and to prepare periodic reports on the implementation of safeguard measures as

outlined in the RAP.

Social Safeguards Officers

The social safeguards officers in the Industrial Zone Development and Environmental Safeguard

Directorate (IZDESD) and CJCP will be directly responsible for reviewing, monitoring, and

implementation of the RAP. The social safeguards officer will also be responsible and in charge

for the identification of adverse environmental and social impacts and for monitoring the

implementation of the mitigation measures.

Monitoring and Evaluation Officers

Proper monitoring and evaluation mechanism will be installed to assess the impact of

resettlement for a reasonable period before and after all resettlement and related development

activities have been completed. Therefore, the Monitoring and Evaluation officers of the

Industrial Zone Development Corporation (IZDC) and CJCP will be responsible to monitor and

evaluate the implementation of the RAP in consultation with Akaki Kality Sub city and Woreda

9 and 10 Administration offices. The monitoring and evaluation tasks will be done on the basis

of indicators which include;

Timely implementation according to the timelines in the RAP;

Number of PAPs compensated, and type and amount of compensation paid;

Livelihoods restoration efforts made (number and type of jobs created, type of skills

training given and number of PAPs participated in the training, number of PAPs

participated in IGA schemes, amount of credit installed or number of PAPs benefited

from a credit scheme, and number of beneficiaries of other livelihood restoration supports

made, etc);

Number of vulnerable PAPs that have received additional support and assistance;

Type of public infrastructures and social services (availability of basic infrastructure:

electric power, access road, water, education and healthcare services, sanitary and

drainage facilities) re-established in the new resettlement area;

Appropriateness of grievance redresses mechanisms (number of complaints received and

resolved on agreed time, etc)

The evaluation will be done on quarterly and annual basis for two consecutive years. The

monitoring and evaluation results will be based on a number of key indices for selected

households in combination with the observations by the social scientist. EIZDC will report the

findings to MoI and other project stakeholders. Furthermore, the Woreda Administration offices

will also produce a quarterly report regarding their accomplishments and submit to the Sub city

and the city Administration as well as to MoI. Finally, through MoI the report will be submitted

to the World Bank.




4.2 Regional and Local level

Addis Ababa City Administration and its organs

The Addis Ababa City Administration, the Akaki-Kality Sub city and the Administrations of

Woreda 9 and 10 in Akaki Kality Sub city will have a major role and responsibility in the

planning and implementation of this RAP.

In addition to government institutions, representatives of PAPs and local NGOs operating at

woreda level will have important role to play in the planning and implementation of the RAP and

their involvement needs to be enhanced. Akaki Kality Sub city and Woreda 9 and 10 as required,

are responsible for the execution of compensation payments as per the guidelines set in the RPF

and this RAP. Therefore, Akaki Kality Sub city and its organs namely:

i. Land Administration and Building Permit Authority (LABPA)

ii. Land Dev’t Bank and Urban Renewal Office (LDBURO)

iii. Woreda Administration (Woreda 9 and 10) are responsible for:

establishing resettlement and grievance redress committees at Woreda level;

implementing the RAP

effecting compensation payments for PAPs

implementing income restoration measures

providing support for vulnerable groups

monitoring the restoration of public services, etc.

Resettlement Implementation Committee

The Resettlement Implementation Committee is one of the most important actors as far as the

RAP is concerned and shall be established at both Woredas (Woreda 9 and 10) with the

responsibility of planning, coordinating and monitoring of compensation payments and

relocation activities. This committee which is comprised of representatives from the Woreda

Administration offices, the PAPs, the Kebele Administration, the Sub city land management

team, the Woreda Agriculture and Rural Development Office and Elders has already been

established during the period of field work and the PAPs are already aware of the existence of

such committees in each specific woreda.

Property Valuation Committee

The Property Valuation Committee has been established in each Woreda and review the list of

PAPs, registration of assets and properties; and establish unit rates, taking into account,

Proclamation 455/2005 and councils of Ministers regulation 135/2007. The following are

members of the committee: agriculture experts, land and property surveyors, representatives

from the Woreda Administrations and the PAPs.




Grievance Redress Committees and Mechanisms (GRC)

In the process of implementing this RAP, identifying grievances and ensuring timely resolution

is very important. A Grievance Redresse Committee (GRC), whose main function is to handle

grievances and amicably resolve problems has also been established. PAPs may file their

discontents in writing to the committee chairperson. The grievance needs to be signed and dated

by the aggrieved person. The GRC will keep a register of grievances, and respond in writing

within fifteen days after they receive the complaint and inform the complainant of its rights,

whether it intends to investigate the matter, and the timeframe.

If the grievance is related to valuation of assets, the appropriate officers from Land

Administration office and the GRC members need to be requested to revalue the assets in

question, and this may require a longer period of time. If the aggrieved person does not receive a

response within 15 days, or is not satisfied with the outcome s/he may lodge the case to the

Court. The decisions of the courts will be the final and binding. However, amicable settlement

and arbitration among aggrieved parties is the most preferred option for dispute settlement. The

PAPs are, therefore, well aware of the existence and role of this committee.




5 SOCIO-ECONOMIC BASELINE STATUS (GENERAL)

5.1 Location and Administration Setup

Addis Ababa, the capital city of Ethiopia is found in the central part of the country at the

foothills of Mount Entoto. It is located at the geographical coordinate of 9º N and 38º 45’E,

covering a total area of over 527km2 (527,000 hectares). The city is a seat for the African Union

and many other international organizations. As can be seen from the location map below, the

proposed Kilinto Industrial Zone is located in the south-eastern part of Addis Ababa.

Akaki Kality Sub city where Kilinto belongs to is located in the South Eastern part of Addis

Ababa. It is one of the ten sub-cities of Addis Ababa and is divided into 11 Woredas. It is 20 kms

far from the city’s center and covers a total area of about 6,143.4 hectares. Kilinto Industrial

Zone (KIZ) is located in the South Eastern part of Addis Ababa, the capital of the Federal

Democratic Republic of Ethiopia, which is located between 80 55’ and 90 05’ North latitude and

380 40’ and 380 50’ East longitude. The proposed IZ falls on an area of 308ha which specifically

is located in in Woreda 9 and 10 of the Sub city.

Figure 5-1:Location of the KIZ




5.2 Population and Demographic Characteristics

As per the population projection made for 2014 (CSA, 2009), the population of Addis Ababa is

estimated to be 3, 195,000 (composed of 1,515,000 and 1,680,000 male and female populations

respectively) living in 10 Sub-cities and 204 districts divided for administrative purposes. The

ten sub-cities are: Addis Ketema, Lideta, Cherkos, Yeka, Bole, Akaki Kality, Nefas Silk, Kolfe

Keranio and Gulele each with an average of 300,000 people. However, Akaki Kality has still the

lowest number of people from among the 10 sub-cities. It is expected that this picture will

change much within a very short time since it is now serving as a new expansion area for Addis.

Addis Ababa is hosting 30% of the urban population of Ethiopia. The rapid increase in

population is resulting in the expansion of boundary to south east side of the metropolitan area.

As per the 2007 census, the total population of Akaki Kality Sub city was 181,270 (88,714 male

and 92,556 female). According to the Central Statistics Authority (CSA) projections of July

2013, the population of the Akaki Kality Sub city is estimated to reach 205,385 out of which

100,513 are male and 104,872 are female. The Sub city has a population density of 1,653.7 per

square kilometer. The population is comprised of factory workers, civil servants, daily laborers,

merchants, commercial sex workers, farmers and others.

However, the area proposed for the IZ is largely in a rural setting inhabited by farming

communities. As a result, the population density given for the Sub city at large does not reflect

the reality in the project area. Again as per the census of 2007 (CSA 2007), Kilinto, Feche and

Koye which together form Woreda 9 had a population of 5,122 (2,615 male and 2,507 female).

The total number of HHs are 1,143. While Gelan Gura, which forms Woreda 10, had a total

population of 3,903 (2109 male and 1794 female) which comprised of 746 HHs. However, the

current estimates made by the Woreda 9 and 10 Administrations are 8,500 and around 6,000

respectively. Based on the 2007 census, the average household size of the two Woredas is around

5 persons. Nevertheless, the above figure is changing fast since the population is currently

increasing at an alarming rate due to increase in in-migrant labourers who are engaged in the

numerous construction activities going on in and around the project area.

Regarding the type of settlement in the specified Woredas, the inhabitants of the Woredas are

settled in villages locally known as ‘menders’ and zones within each village locally known as

‘Ketana’ which include Kilinto, Feche and Koye in Woreda 10 and Gelan Gura, Kotoma, Gende

Dawa and Bowa in Woreda 10. Houses are concentrated in villages in a sort of nucleus

settlement established during the villagization program of the Military Government in 1977

Ethiopian Calander. Most of the houses have compounds greater than 1000m2 in area.

5.3 Religion, Ethnicity and Language

Though it is difficult to obtain reliable and documented data related to religion, ethnicity and

language of the population of the project area in general, key informant interviews and

discussions with local officials revealed that the population in Gelan Gura (Woreda 10) is

predominantly of Oromo ethnic origin speaking Afan Oromo and followers of the Orthodox

Christian religion. Among an estimated 600 households in Gelan Gura,only about 20 households

are followers of Islam and the remaining large majority are followers of Orthodox Christianity.

There is no Mosque in the Woreda.




It is only when it comes to Woreda 9 (Kilinto), which is closer to the Sub city centre, that one

observes a mix of religion, ethnicity and language, although the majority of the population is still

of Oromo origin speaking Oromifa and adherents of the Orthodox Christian Church. This is

typical of most of the urban fringes of Addis Ababa where there is gradual encroachment of

people and businesses from the city centre.

5.4 Economic Conditions and Livelihood

As explained above, though quite a large number of the populations in the Sub city earn their

living from various types of activities of urban nature such as employment in services and trade,

manufacturing or factory workers, civil servants, etc., the livelihood in the project Woredas is

predominantly agrarian and rural. It is based on mixed farming with a predominance of cereal

farming with little area left for grazing. The livestock economy is largely based on crop residue,

straws after harvests and the very little available grazing land. Average landholding is around

2.5ha which is relatively higher compared with the landholdings of other sedentary farmers in

the country.

According to the livelihood zone analysis of Ethiopia, conducted by Girma Medhin in

consultation with FAO, 2011 (FAO, 2011), the project area belongs to Livelihood zone 13

characterized early sedentary agriculture and relatively abundant rainfall, rain fed production of a

wide-range of highland cereals (teff dominated) and deeply entrenched, traditional crop and

livestock husbandry practices under temperate climatic conditions in the highlands, in which

long years of extractive forms of production, high population and livestock densities have led to

advanced levels of natural resources degradation

Before the depletion of the natural forest cover to its present precarious level, sale of fire wood

and wood for construction as well as sale of forest products used to contribute significantly to

farmers’ livelihoods. Farmers in this system are also engaged, to a certain extent, in petty trade to

augment their income.

As per the discussions and data from the Woreda offices, key informants as well as the Project

Affected Populations (PAPs) themselves, the area is known for its good potential in agricultural

production, especially cereals. It is known for its production of one of the best varieties of teff

(very important staple food in Ethiopia) known as ‘magna teff’. Other annual crops such as

wheat, chickpeas, lentils, and different types of beans are also grown based on established

rotation of crops.

In addition to crop farming the economy of quite a large number of the households is supported

by the possession of a good number of livestock which include oxen used for ploughing, cows

for reproduction and milking and pack animals used for transportation.




According to Akaki Kality Sub city Urban Agriculture Development Office, irrigation is

practiced in an area of 120ha by 223 farming households in the Sub city. The Sub city has the

highest practice of urban agriculture in Addis Ababa. Among the population of the Sub city

about 4,437 households practice urban agriculture. It is based on the practice of growing of

vegetables (gardening), ownership of milking cows, chicken farming, fattening, etc. A total of

910 and 789 farmers practice urban agriculture in Kilinto and Gelan Gura respectively. An

average of 2milking cows which give around 10litres per day and around 50 chickens is very

common in addition to the availability of some oxen and pack animals in most of the households.

Housing conditions in and around the proposed KIZ are also better than many of the rural

settlements in the rest of the country. As indicated earlier, initially, during the villagization

program, an area of 1000 m2 was allotted per household for the construction of houses. As such,

each HH has an average of three houses within the same compound in addition to a separate

kitchen and separate cattle sheds. The houses are mostly made of corrugated iron sheet and walls

made of wooden material and mud plastered with a mix of sand and cement as can be seen from

figure 5.10.

However, recently, as the data from Woreda 9 Administration shows, there is an encroachment

of some other economic developments including industrialization. The construction industry is

now a very important economic sector in the project area. The construction of around 57,000

condominium housing units has reached its finishing stage and a corner stone for the

construction of another 50,000 condominium houses has been laid recently, all in all occupying

hundreds of hectares.

The Consultant has visited an ongoing construction of Heineken Beer Factory near the project

area. As per the information from the construction office, the factory is being built on an area of

25 ha of land and it is designed to produce 1.5 million hectoliters per year. It is employing 500

laborers currently and 250 permanent workers of different skills will be employed at the

operation stage. Among the local population, 40 guards have already been employed in the

factory each earning a monthly gross salary of Birr 1,500.00. Besides, Addis Ababa Science and

Technology University and Tirunesh Beijing Hospital have started operation in the immediate

neighborhood of the IZ. In conclusion what can be said is that the economy in the area is

changing fast from cereal based mixed farming to other types of modern urban economic

activities where only a practice of urban agriculture in small land holding can have the

Figure 5-3:Houses at KIZ at Alan Gura Village Figure 5-2: Heaps of agricultural produce in Alan Gura




possibility of being included. It is expected that economic activity based on crop and livestock

production will soon give way to other types of economic activities since more and more of the

farmland is annually being converted to other forms of economic activities as mentioned above.

5.5 Land Use and Land cover

Agricultural activities that include crop production, cattle breeding and planting trees cover the

major proportion of the project area. Cereal crops like teff, wheat as well as pulses like chickpeas

are dominant crops produced in the area. Therefore, the existing land use type of Kilinto IZ site

is mainly characterized by agriculture with scattered rural settlements.

In addition to the scattered rural settlements, a new expansion of residential areas such as

condominium sites to the west and south of the KIZ have covered a very significant area. The

newly established Addis Ababa Science and Technology University and the Heineken Beer

Factory under construction have also covered a very significant area to the south and south east

of the KIZ. Besides, Akaki town which is situated at around 7 kms away from the IZ is an old

industrial town which harbors a number of industrial clusters that range from light to heavy

industry.

5.6 Access to Social Services

5.6.1 Access to Health

Health services are being provided by two health posts at health extension level in the two

project Woredas. There is no clinic or health centre around the IZ. The health service focuses

mainly on prevention and awareness creation. The ongoing health extension program implements

16 packages focused on sanitation, family planning and HIV. However, the program is poorly

managed and implemented due to lack of medical personnel. Recently, a new health post is

under construction in Kilinto (Woreda 10).

However, at Sub city level, there are 7 health posts and one hospital. Currently, patients are

referred for treatment to the nearby Akaki Health Centre and to Beijing – Tirunesh Dibaba

Hospital which are about 8 kms away. To get such high level health services within the Sub-

city, the community have to walk or travel by any available transport service, which is in most

cases not dependable.

5.6.2 Access to Education

Both Woreda 9 and 10 provide kindergarten and primary schools education up to grade 8. High

schools and other specialized schools are only found in and around the proper Akaki and Beseka

urban area which is more than 7 kms away from the IZ. However, there are 2 Technical and

Vocational Education Training (TVETs) centers in the Sub city that provide training in different

areas of skills and also accommodate short term skill trainings for farmers especially in areas of

urban agriculture and construction.




6 Socio Economic Condition of the PAPs

6.1 General

In general terms, what has been discussed in the preceding chapter with respect to economic and

livelihood conditions of the population of the two affected Woredas also holds true for the PAPs.

However, in order for the RAP to be much more realistic, there is a need to focus more on the

target population which are actually affected by the project (PAPs).

All in all, 245 households comprised of 1,225 family members will be affected by the project and

can be considered as PAPs. The majority, 148 households are from Woereda 9 (Kilinto village),

while 97 households are from Woreda 10 (Alan Gura village).

6.2 Age - Sex Composition

The majority of the households (65%), who are affected by the loss of assets and income

generation are male-headed households while the rest 35% are female-headed. From the 15

households who will lose their dwellings, only 5 (33%) are headed by females. The age

composition of PAPs is indicatedin the table below (See Table 6-1).

Table 6-1: Age composition of PAPs

S.n Age Category Number %

1 < 14 years old 361 29.46

2 15 to 60 792 64.65

3 61> 72 5.89

Total 1225 100

As can be seen from the above table, a large segment of the population (64.65%) can be benefit

from the livelihood restoration measures like job creation schemes, whereas, nearly 35 %

requires special attention due to their vulnerablity.

6.3 Source of Livelihood of the Affected Families

As indicated earlier, the livelihood of the PAPs is predominantly rural agrarian based on mixed

farming practices, predominantly of cereal farming type with little area left for grazing. The

livestock economy is, therefore, dependent on crop residues, straws after harvests and the very

little available grazing land. Average land holding is around 2.5ha which is relatively higher

compared with other sedentary farmers in the country.

6.4 Religion

The majority (more than 90%) of the PAPs in Kilinto and almost all in Gelan Gura villages are

Orthodox Christians.




6.5 Housing Conditions of the PAPs

The housing conditions of the PAPs are no more different from the rest of the housing conditions

in the neighborhood. The houses are concentrated in villages known as ‘Menders’ established

during the villagization program of the former Military Government. Relatively wider

compounds are found in Woreda 10 (Alan Gura) than in Kilinto village.

Each household has an average of three houses within the same compound with separate quarter

for kitchen and cattle sheds. The houses are mostly made of roofs with corrugated iron sheet, and

mud and wood walls.

6.6 Land Holding Size

The land holding size of the PAPs varies from household to household. Even though the

consultant couldn’t find any reliable data on the size of landholdings of each and every project

affected household, based on the discussions with key informants (Woreda Agricultural

Development officers), focus group discussions and PAPs meetings, the average landholding

size has been estimated to be around 2.5ha.

6.7 Crop Production

Teff is the most dominant crop grown in the project area and by all PAPs invariably. The project

area is recognized as one of the most important high quality magna Teff producing areas in the

country. No other crop is grown at an appreciable size of landholding in the project area. Other

annual crops such as wheat, chickpeas, lentils, and different types of beans are also produced

through crop rotation practice.




7 Overview of the Project

The description of the proposed KIZ project presented below is based on the information from

feasibility and master plan studies of the project. The project can be described as one of a mixed-

use industrial complex where the desired industrial/manufacturing development is implemented

in association with essential business offices, commercial, customs, recreation and required

infrastructure developments to make it a state of the art Industrial Park. Accordingly, a

summary of the classification of the major activities that will operate in the Kilinto Industrial

Zone is given in the table below (See Table 7-1).

Table 7-1: Classification of activities and major components in KIZ

Classification Major components

Industrial

/Manufacturing

·Food and Beverage, Electric / Electronics, Pharmaceutical and

medical, Furniture/Fixture

·Miscellaneous Manufacturing

·Logistics, Warehousing

Business Support

/ Public offices

·R and D, Incubation Center

·Business Support Center

·Public Office / Exhibition hall

·Police Station, Fire Station

Commercial / Business ·Store / services

(Commercial, laundry, restaurants etc.)

Recreation / Leisure

·Parks, green areas (buffer zones)

·Pedestrian roads

·Lounge, health center, day care center

Infrastructure ·Roads

·Parking lots

The proposed land use of the IZ and proportions in terms of area occupied by the selected

functions and facilities is given in table 6.2 below, while the proposed layout of the different uses

as finally provided by the master plan is given in figures 6.1 below. The allocation of Park and

Green Areas is also given in figure7-2.




Table 7-2: Land use proportions

No Land Use Area in m2 Ratio

(%)

Remark

1 Manufacturing 1,885,661 61.2

2 Logistics/warehousing 47,000 1.5

3 Business Park and R and D 100,033 3.2

4 Customs/public offices 41,044 1.3

5 Store/services 47,239 1.5

4 Infrastructure Facilities 959,024 31.1

4.1 Park and Green 157,853 5.1

4.2 Roads and Pedestrian road 387,029 12.6 including rivers (streams)

4.3 Park 336,517 10.9

4.4 Sporting facilities 30,616 1.0

4.5 Parking 47,008 1.5

Total 3,080,000 100

Figure 7-2: Allocation of Proposed Land

Uses

Figure 7-1: Allocation of Park and Green Area




Parks /Green Areas will be centrally located so as to maintain a view of the industrial park and

minimize environmental pollution. The green areas will be arranged along with parks to enhance

the enjoyment of natural scenery through securing leisure space that will include rest areas and

sports facilities for workers.

As per the feasibility study and the master plan, four main categories of industries namely, Food

and Beverage, Pharmaceutical and Medical, Electronic/electronics, Furniture and Fixtures, and

other miscellaneous manufacturing plants have been recommended for the Kilinto IZ in the

given order of priority as can be seen from tables 6.3 below. The ratio has been given out of the

total area allotted for manufacturing excluding other uses in the land use plan. As can be seen

from the figures, it is anticipated that two major categories i.e. the food and beverage and the

pharmaceutical and medical are going to be dominant.

Table 7-3: Categories of Industries (Master Plan Study)

Industrial Categories Area m2 Ratio

Total 1,885,661 100.0

Food and Beverages 991,768 52.6

Furniture and Fixtures 153,298 8.1

Pharmaceutical and Medical

Electric/Electronics

702,882 37.3

Miscellaneous Manufacturing 37,713 2.0




8 Public Consultations

Consultation with Project Affected Populations (PAPs) and other pertinent stakeholders has been

utilized as a very important tool and methodology in order to gather required data and

information as well as views and opinions of all those concerned with regards to the following:

Implementation of the KIZ

Potential positive outcomes and enhancement measures

Potential negative impacts and mitigation measures

Roles and responsibilities in the ESMP, and RAP and monitoring of the same

Community support and participation, etc.

Consultations have been held in the form of meetings and Focus Group Discussions and Key

Informant Interviews. Some of the consultations made with community and religious leaders as

well as elders and informal leaders were informally conducted during the field work. The aim

was to gather views and opinions regarding the proposed project and expectations.

However, formal consultations were made with the following stakeholders:

Project Affected Persons (PAP),

Community and Religious leaders,

Elders and informal leaders,

Resettlement Committee,

Grievance Redress Committee,

Officials of two vocational training institutions in Akaki

Office of Micro and Small Enterprises of the Sub city,

Office of Compensation and Rehabilitation in Akaki,

Woreda 9 and 10 Administration and Sector Offices,

Kebele Administrations (rural and Urban).

The nature and type of consultations made at different levels and the outcomes are presented as

follows.

A) Federal Ministry of Industry (MoI)

Consultations

Policies, Legal Framework and Institutional Framework for the study design,

construction and operations of the IZ.

Roles and responsibilities of the MoI.

Capacity for management and operation as well as monitoring.




Outcomes

It was confirmed that the MoI, as the

proponent of the IZ project, is making all

necessary efforts and preparations to cope with

any environmental and social problems that can

possibly arise. The MoI has already some

experience with regard to the implementation and

follow up of Environmental and Social

Management Plans (ESMPs) and RAP. Required

information and documents were given by the

Deputy Director of the Directorate of Industrial

Zone Corporation and Environment Safeguard

Team leader. As a result, the role of the MoI in the

implementation of the RAP was reiterated,

reviewed and confirmed. It has been recognized that the Ethiopian Industry Zone

Development Corporation is the highest responsible body for the development and

Administration of industrial zones in the country. Other roles, mandates and

responsibilities of the Corporation were also reviewed with the focus on ESMF and RAP.

Preparations made by way of organizational structure and manpower plan for the

Corporation and its responsibilities during study and design, construction and operation

of industrial zones were discussed at length and documents of the same provided.

B) Akaki Kality Sub city

Consultations

Presentation of the nature and type of the proposed KIZ by the Consultant;

Likely positive and negative impacts;

Roles and responsibilities of the Sub city in the study, design, construction and operation

as well as in the ESMP and RAP and monitoring of the same was discussed at length;

Outcomes

Understanding was gained on the work executed so far, remaining works and the

readiness and preparations made on

the part of the Sub city towards

carrying out the activities related to

ESMP and RAP;

It was recognized that there

are lots of gaps in conducting the

required activities in terms of

additional support (which are part of

administrative tasks) that would

make the RAP more effective.

Figure 8-1: Discussion at MoI

Figure 8-2: Meeting with Akaki Kality Sub city officials




The Consultant noted this as a very important issue and recommended budget for local

capacity building tasks to be included in the RAP.

A manual (interface) of expected responsibilities and working mechanism to provide the

required compensation and livelihood restoration was prepared and signed by all

pertinent offices and organizations within the Sub city. This manual is tailored toward the

implementation of the RAP in view of other activities that are anticipated to come in the

Sub city with a potential for permanent expropriation of land and displacement of

farming populations in the Woredas. Hence, it specifies the roles of each and every

stakeholder in handling the preparation of resettlement areas, infrastructural

development, compensation, livelihood restoration through training and job creation, etc.

The manual for expected interface in the advent of any RAP was developed only very

recently and has to be tested practically. The assigned responsibilities reflected in the

manual are based on existing roles, responsibilities and mandates (jurisdictions) of the

different offices. It specifies the roles of small and medium scale enterprise offices with

respect to organizing PAPs, the role of job training institutions, credit and loan office,

land Administration, etc in such a way that they respond properly and timely to the

requirements of the RAP. Generally, the manual is intended to harmonize the activities in

line with the requirements of the RAP.

It was also noted that the necessary preparation should be made to rectify any past gaps,

in relation to required awareness creation, training, job creation, etc for PAPs.

C) Different Pertinent Offices and Organs of the Sub city (Office for the Organization of

Micro and Small Scale Enterprises, Technical and Vocational Education Training

institutions both Akaki TVET and Yenegew Sew TVET were consulted).

Consultations

Discussion on required skill training and upgrading for PAPs;

Capacity of the Office for the Organization of Micro and Small Scale Enterprise and

TVETs in the Sub city in handling training, organizing and job creation activities for

PAPs;

Nature and type of skill and trainings that can be provided to PAPs.

Outcomes

Roles and responsibilities of the above organization with respect to the KIZ RAP were

reviewed and discussed.

List of nature and type of skill trainings as appropriate for the PAPs, time duration

required and training fee for the same was provided by the TVETs.

Budget estimate for the establishment of different and appropriate micro and small scale

enterprises was provided.

This was used as an input for planning required training programs for PAPs.

D) Woreda Administrations (Woreda 9 and 10)




Consultations

Presentation of the nature and type of the proposed KIZ by the Consultant.

Likely positive and negative impacts.

Roles and responsibilities of the Woredas in the study, design, construction and operation

as well as in the ESMP and RAP and monitoring of the same was discussed at length.

Outcome

Understanding was gained on the readiness and preparations that is being made by the

Woredas with the support and assistance of the Sub city towards carrying out the

activities related to RAP.

Activities that have been initiated already due to earlier knowledge and information about

the KIZ and future plans and programs that will be implemented by the Woredas with

respect to compensation and resettlement issues and capacity building as well as

livelihood restoration were, identified, reviewed and discussed.

E) Project Affected Peoples (PAPs)

Consultations

Consultation with affected persons was made on 15 March, 2014 at the neighborhood

settlement site of Kilinto IZ. For the consultation, it was not possible to get all of the 245

household heads, which consist of about 1,225 individual family members. Thus, only 56

household heads (41 male and 15 female HHs) participated in this consultation. They

were asked why the rest of the PAPs couldn’t participate in the consultation, and they

mentioned that some of the PAPs had several related meetings with respect to this project

by the Administration which started some preparatory work towards the implementation

of the RAP and some PAPs are busy with their own business on the scheduled day. The

agenda of the consultation included:

o Presentation of the nature and type of the proposed KIZ by the Consultant;

o Likely positive and negative impacts;

Figure 8-3: Meetings with Woreda 9 and 10 Officials




o Views and opinions of the PAPs;

o Roles and responsibilities of the PAPs in the enhancement and mitigation of the

likely positive and negative outcomes respectively;

o Problems and constraints anticipated in the process of executing compensation

and resettlement works;

o Readiness on the part of PAPs in efforts to implement appropriate livelihood

restoration programs;

o Discussion on job preferences of potential PAPs in the event of planning and

implementation of livelihood restoration activities.

Outcomes.

All of the consulted community groups welcomed the IZDP. The PAPs invariably made

it clear that the development activities initiated in their respective areas and the

surroundings are for the benefit of the country at large and the population around. They

expect that the project will contribute for improving the livelihood of the community.

The recognition [by government counterparts] of the need for orientation and appropriate

implementation of compensation and livelihood restoration works will help to increase

confidence on the part of the PAPs and to ensure strong cooperation for similar endeavors

by the Government in the future.

PAPs expressed their hope and expectation for appropriate coordination and timely

execution of the required compensation, and livelihood restoration tasks.

The PAPs also understood that after they get compensation for their lost land, those who

lost some portions of their farmland can use the remaining farmlands and areas in their

homesteads for their livelihood restoration efforts. It was confirmed in the meeting that

there is no household that could lose the entire farmland (see livelihood restoration).

Even though consolidated and reliable data on the exact size of the remaining farmland of

each household was not found at the moment, it was revealed in the meeting and from

key informants in the Woredas that each of the PAPs still possess around 1.5ha of their

farmlands. This was taken as a positive aspect for the implementation of a livelihood

restoration program of land-agriculture based strategy as will be explained later.

The PAPs also expressed their hope and expectations with respect to the provision of

basic infrastructure like water, road, electricity and others at the resettlement site before

actual relocation takes place.

The meeting also emphasized the need for the commitment of government to ensure the

timely release of the necessary funds to pay compensations and give the needed support

to implement the livelihood restoration measures within a short period of time.

There is also a major concern on the project and its components, particularly in terms of

availability and functionality of waste treatment facilities. Participants clearly stated that

their surrounding environment should not be a place for improper waste disposal.

Participants raised concern that priorities for project benefits such as job employment and

other opportunities may not be given to the affected (local residence) and clearly stated

that they will cooperate in measures that will be taken for livelihood restoration.

However, government representative in the meeting responded to this issue by stating

that procedures and mechanisms for job benefits that give priority to PAPs have already

been set at city and Sub-city level.




There was a clear understanding on their part that pollution will be a burden to the local

communities and the environment unless strong monitoring is implemented during

construction and operation of the project. During the consultation, it was mentioned that

the issue has already been taken care by the ESIA study conducted for the project. It was

also revealed that state of the art technology of modern industrial parks that abate

pollution are expected to be implemented.

Finally a questionnaire for job preferences for livelihood restoration and essential characteristics

of the PAPs was filled out (sample of the questionnaire is indicated on the annex page 98 of this

RAP). Results and findings have been utilized in the planning of livelihood restoration.

In summary the outcomes of the consultations indicate:

All of the consulted community groups indicated their willingness and showed their

eagerness and social acceptance of the IZDP with caution that the project should give

due attention to environmental and social issues, specifically during the operation

phase to prevent the surrounding community from pollution related health effects.

Project proponent and the consultant team affirmed that they will incorporate

appropriate waste management design and technology as addressed in the ESIA.

The meeting emphasized the need for ownership and commitment of government to

ensure the release of the necessary funds to pay off compensations and give the needed

support to implementing resettlement action plan within a short period.

Another outcome of the consultations was that, the Sub city should provide basic

infrastructures like water, road, electricity and others within the resettlement site for

affected People before actual relocation of PAPs takes place.

There was confirmation that the proposed resettlement area has better access to

infrastructure like potable water, road, electricity, etc, and this was confirmed by the

consultant by visiting the area for resettlement in Yeshi Total area.

It is also confirmed that the concern and doubts on the side of the PAPs regarding

benefiting from the job opportunities that would come along with IZDP will be taken

care of by the MoI and the Sub city as part of the livelihood restoration program.

Special support will be made by the Woreda and the community for any vulnerable

group as well as female-headed households affected by the IZ project in terms of

provision of appropriate site for resettlement, transporting belongings, jobs creation

and business advice, etc.

Government will facilitate the smooth implementation of the construction works and

provide other routine administrative supports if needed.

It is also expected that the construction of the project will enhance development and

growth, and contribute to poverty reduction.

The above outcomes of consultation with PAPs were discussed at length with the Woreda

Administration representatives who attended the meeting for the purpose of communicating the

outcomes of the consultations to the Woreda and Sub city Administrations. All potential

problems and concerns raised and the overall outcome of the proposed RAP has been

communicated to higher officials. There was also meetings with woreda officials to discuss the

outcomes of the consultation where emphasis was given to the development of procedures and




mechanisms in order to respond to the identified concerns and risks. Accordingly, all concerned

parties agreed to deal with the concerns raised.




9 Impact Analysis

9.1 General (Basis for the Impact Analysis)

It is recognized that such an organized IZ development is the first of its kind in Ethiopia. The

country’s preference for IZ is based on experience elsewhere in some other countries, mainly

Asian countries. IZ development emanates from the desire to solve land use constraints,

management, environmental constraints, etc., that arise due to unplanned dispersed industrial

establishments.

As is now widely known, the Ministry of Industry (MoI) envisages developing both the Bole-

Lemi II and Kilinto sites within the framework of current concepts, knowledge and technology

of the “state-of-art” industrial zones (IZs). They are to be developed on the principle of (i) being

eco-friendly, (ii) possessing flexibility, and (iii) maintaining quality work environment. It is

expected that these concept of development will have a very important bearing on the

management of environmental resources. As such, proposed master plan study of the Kilinto IZ,

which has already incorporated basic environmental principles as well as facilities expected to

reduce and minimize if not totally eliminate much of the potential negative impacts on the socio-

economic and biophysical environment.

However, the most important factor as far as the potential adverse socio economic impacts are

concerned is the relatively huge land requirement of KIZ. The fact that the nature of the project

requires the construction and implementation of an Industrial Zone which consists of different

types of industrial categories with adequate space for the manufacturing, supporting

infrastructure, businesses and commercial activities has made land requirement to be relatively

higher. The impact of the other interventions such as transmission lines and distribution lines that

are designed mainly to follow the road master plan and to incorporate existing networks is

minimal. Hence, the major socioeconomic impact is the one related to Involuntary Settlement

as explained below.

9.2 Potential Positive Impacts

In addition to contributing to the fulfillment of higher national objectives of gaining hard

currency by way of getting more and more export earnings and the saving of the meagre hard

currency that the country possesses by way of more and more import substitution the

development of the Kilinto IZ will also have other major benefits that include but not limited to

9.2.1 Creation of job and employment opportunity

The construction of the IZ involves massive works of excavation and land levelling and grading,

roads and pipelines construction, masonry, plumbing, carpentry, electrical and water supply

works that create huge job opportunity. This can be weighed with respect to the number of

people that need to be engaged in the design and system work to start with and the very huge

working force to be actually engaged in the construction work. It is expected that this

opportunity in job creation can improve the incomes of the project area communities and other

migrant workers. It can also be very supportive to the efforts that are expected to be made in




restoring the livelihood of project affected populations particularly the young, both male and

female alike by way of the RAP.

The requirement for the construction of the numerous manufacturing industries, office and public

buildings as well other support facilities of IZ on an area of more than 300ha is estimated to be in

the order of tens of thousands.

9.2.2 Enhancement of capacity building and technology

The proposed IZ will also be very important for skill transfer and capacity building in all

components for future endeavors of similar nature since it is expected to be the first of its kind.

Those engaged in the construction work can later on be employed for jobs that require better

skills and make them earn more in areas such masonry, carpentry, plumbing, wood and electrical

work, etc.

9.2.3 Enhancement of market and investment in the construction and service sector

It is also clearly recognized that such a huge construction work as that of the IZ will boost

investment in the construction sector due to requirements of various construction materials and

equipment and services and transit work that need to be provided locally and from abroad.

9.3 Potential Negative Impacts

9.3.1 Impacts of Land Acquisition and Loss of Income Generation

The Project is to acquire permanently 308ha of arable land. The arable land to be acquired is in

use by farming communities residing in and around the project area. The most adverse socio-

economic impacts of the project are, therefore, the dispossession of farmland and displacement

of farmers from their agricultural land and residences. The establishment of the proposed

industrial zone will involve demolishing of houses and loss of annual and perennial crops and

trees. The major impact is therefore related with economic activities of households as well as

disruption of their social and cultural setting in the existing neighborhoods.

Based on the study conducted, the implementation of Kilinto Industrial Zone will involve the

dispossession of farmlands and grazing land of 245 farming households consisting of 161 male-

headed and 84 female-headed households for a total of 245 households or 1,225 individuals or

PAPs residing within the 308ha of land incorporated by the Industrial Zone from Woreda 9 and

10 of Akaki Kality Sub city of Addis Ababa. From these PAPs, 15 households will have to

relocate permanently. Hence, a total land of 288ha and 57ha of farmland and grazing land

respectively is to be expropriated. Furthermore, around 1.5ha of homestead areas will be

demolished and the land will be incorporated. Though the remaining 12ha of land which is

mainly occupied by valleys of streams and foot paths that crosses the 308ha of land allotted for

the IZ, and will never affect PAPs’ access to sources of water and mobility. The impact of land

acquisition in terms of loss of farmland and grazing land and the number of households affected

from both Woreda 9 and 10 is given in the table on land acquisition below.




Table 9-1: Land Acquisition by KIZ

9.3.2 Impact on Farmland

Land is the main asset and source of livelihood for the PAPs. Farming is the most important

activity and almost all of the 294ha allotted permanently for the IZ is a potential agricultural land

unlike other areas where some marginal land is found in between. It consists of 288ha of

farmland and nearly 6ha of grazing land, with an average farm area of about 1.2ha and grazing

land of 232m2 each. This is almost half of the average 2.5ha productive farmland of the

households. It also includes a few parcels of grazing land. The site is used to grow crops like teff,

wheat, chickpea, linseed, and the grazing lands are used for keeping cattle, sheep and donkeys.

9.3.3 Impact on Housing Structures and Homesteads (Involuntary Resettlement)

The implementation of the Kilinto industrial zone will involve the demolition and relocation of

the houses located within the project site. The major impact on housing and population

dislocation is the loss of houses and compounds of 15 rural households in Woreda 10 (Alan

Gura) which consist more than 75 family members. They will also lose their homesteads which

are large enough and have been accounted with farmland to be lost by the households. As

indicated earlier, there are two to three houses within a homestead consisting of mostly one big

house made of wood and mud plastered wall and corrugated iron sheet roofs. There are some

cultural grass thatched houses within the compounds. All of the affected houses do not have

infrastructure like electric power supply and water supply services. The findings also indicate

that the majority of the project affected people were living in their own houses.

Woreda No. of House

Holds

Farm land

in m2

Grazing Land

in m2

House &

homestead

(ha)

River

valleys, foot

paths,etc.

Woreda 09

148

182

0.4

Woreda 10

97

106

5.3

1.5

Woreda 09 &

10

245

288

5.7

1.5 12.8

Total Land

Area

308ha




9.3.4 Disruption of Social and Cultural Ties

During the consultation, it was expressed by some members of the population that their

relocation is a disturbing experience in a sense that they feel some discomfort by the very idea

moving away from their original place or place of their ancestors and the disruption of their

social and cultural ties. However, they stated that this will be compensated by better housing

conditions in the resettlement area, which is in Yeshi Debele TOTAL area situated along the

main highway from Addis Ababa to Debrezeit. The resettlement site selection has been made in

consultation with PAPs and considering the proximity to the old neighborhood, access to basic

social services and amenities. Impact on Vulnerable Groups.

The negative impacts of the resettlement program mentioned above can be harsher on those who

cannot adequately cope. As has been indicated earlier, from the survey conducted out of the total

number of 245 households affected, 84 of them (34%) are women headed and there are around

20 PAPs with ages ranging from 65 to 90 years old that can be regarded as vulnerable. Children

under 14 years of age are also close to 1/3 of the population. There is one person with disability

among the PAPs using a wheel-chair. However, his house is not to be relocated. The mechanisms

of assistance to vulnerable groups are discussed under the chapter on mitigation.

9.3.5 Impact on Public and Community Institutions

As far as the area of around 308ha of land already included in the KIZ is concerned, observations

made by transect walking and discussion held with affected Kebele representatives, community

elders and the Google map of the area indicate that it is largely occupied by farms and a small

area of grazing land. As such, there is no impact on social services facilities like public

buildings, schools, health facilities, water supply and religious institutions (churches and

mosques). Therefore, no compensation measures will be required for loss of such infrastructure.

9.3.6 Impact on the Land Use

The IZ site requires a large piece of land. Plots of land required for this purpose would be

permanently transformed. Substantial area of land would be required for the construction of the

different categories of industries, public offices, garages and warehouses, parks, etc permanently

transforming agricultural land under a rural land use setting to an Industrial Zone with a

completely different land use. The extent and impact on the land use change can be easily

realized when one looks into the land use categories recommended by the master plan in an area

of about 308ha as shown in chapter 6 on overview of the project.




10 Proposed Mitigation Measures

Mitigation measures are proposed based on the GoE's Proclamation No. 455/2005 and

Regulation no. 135/2007 and WB policy on involuntary resettlement (OP/BP 4.12) explained

earlier. Accordingly, a policy framework had been developed by the GoE in a detailed manner to

be implemented by each regional and/or city Administration. In all cases, the mitigation

measures and packages of compensation recommended are established at replacement cost based

on the guidelines (Guideline No. 3/2010, No. 3/2012 and No. 3/2014) of the Addis Ababa City

Administration, which is consistent with the Federal level proclamation and theWorld Bank’s

policy, i.e. compensation at replacement cost without depreciation.

Compensation option

Under a very favorable situation, minimizing of land acquisition to what is essentially required

and compensation of land for land could have been the preferred option for mitigation. But the

reality on the ground does not allow the implementation of such mitigation measures. To start

with, as discussed earlier, the area and its surroundings has already been designated as an

industrial zone as per the master plan. Secondly, the project area is located in the urban fringe,

which is gradually being integrated with the city in recent years due to new urban development

plan. There is no more chance of utilizing the area for the development of rural agriculture as it

used to be. Hence, the compensation of farmland for farmland is not considered as an option due

to scarce land. As a result, the compensation for farmland and grazing land is determined as cash

compensation at real replacement cost including transaction costs based on current market price

without depreciation as per legislations and regulations (which is annually assessed and

calculated by the City Administration to take in to account market trends in the preceding five

years before expropriation).

With regards to the PAPs to be affected by demolition of their houses, for reasons discussed

above, the appropriate option is to relocate those PAPs to areas not far away from their current

location and neighborhood. To this effect, houses and associated assets are valued at replacement

cost based on current market price without depreciation as per the regulations and guidelines of

Addis Ababa City Government, which is in line with the WB policy. All mobilization costs and

other temporary transitional assistances will be provided by Akaki Kaliti Sub-city Land

Administration Office.

Resettlement measures

The proposed resettlement area is around 5kms away from the project area. The area has been

proposed considering distance, access to social services and amenities. In addition, this site has

been proposed in compliance with the master plan of Akaki Kality Sub-city and the involvement

of members of the resettlement implementation committee and PAPs Representatives. Besides,

taking the objective reality in Akaki Kality, where demand for resettlement area is pressurizing

the administration, the proposed resettlement area is found to be fairly evaluated in terms of

availability of social and physical infrastructures and distance from services and amenities.

Moreover, PAPs to be relocated did not raise any major problem as far as the proposed site is

concerned.




Regarding the budget allocation cost of mobilization, house rent and other inconveniences that

might require temporary transitional solutions will be part of the budget allocated in the RAPs.

All the costs are calculated as per the regulation of Addis Ababa City Administration (Regulation

3/2010) which clearly states the basis for estimation and the formulae for calculation.

Accordingly, house rent payment for each of the 15 dislocated households is calculated based on

the formulae set in the regulation (Built-up area (m2) X 40 Birr X 12 Months) for one year

anticipating the resettlement process will be accomplished within one year. The process was not

finalized during the field visit. However, the Consultant has put his estimates based on the

regulation), and government has agreed that during compensation payment the actual market

value will be used.

The resettlement measures will assist each category of eligible project affected persons to

achieve the objectives of the policy of GoE and WB. In line with the different provisions

explained earlier, the following mitigation measures are developed in response to policies and

regulations and issues emphasized by the PAPs with respect to the impacts of the project on their

livelihood.

o Compensation for physical assets owned, like house structures and fences;

o Compensation for their farmland and grazing land;

o Provision of relocation allowance (transfer and installation); and

o Provision of compensation for livelihood interruptions and income restoration.

Assistance to Vulnerable Groups

The types and number of vulnerable project-affected households has been indicated in section

9.3.5 above. Vulnerable groups are specially exposed to the risks of impoverishment and

destitution. Targeted assistance measures are, therefore, necessary to cushion vulnerable groups

from these risks. In this regard the most important point to note is that for the very poor and

vulnerable groups of PAPs the benefits from compensation will be very limited because their

assets are very small to begin with and it will take time before the benefits from income

restoration measures are realized. Hence, there is need to provide additional support to the

vulnerable groups to facilitate faster adjustment in the new environment and impacts associated

with the project. Accordingly the following measures are identified:

Continuous consultations by the project implementing unit.

Priority in site selection in the host areas.

Relocation near to old residential area.

Assistance and help in dismantling and transporting salvageable materials from their

original home.

Priority access to other assistances (job opportunities and trainings).

All of the above mitigation measures have been taken into account as part of this RAP.

Summary of major types of resettlement loss and mitigation measures required is given in table

10-1 below




Table 10-1: Major Types of Resettlement Loss and Mitigation Measures Required

Type of loss Mitigation measures

Loss of productive assets, including

land, income and livelihood Cash compensation at replacement cost for lost

incomes and livelihoods. Income substitution and

transfer costs during relocation and re-

establishment plus income restoration measures

in the cases of lost livelihoods

Land for land, in cases where the loss exceeds 20

percent; if not possible, then cash. Cash

compensation for land where the loss is less than

20 percent.

Loss of housing Cash compensation for lost housing and

associated assets at real replacement cost;

relocation options including relocation site

development if required; plus measures to restore

living standards.

Provide housing, (or finance for resettled persons

to construct), infrastructure (e.g., water supply,

feeder roads), and social services (e.g., schools,

health services).

Ensure comparable services to host populations;

any necessary site development, engineering and

architectural designs for these facilities.

Loss of other assets Cash compensation at real replacement cost based

on current market price including transaction

costs.




11 Entitlement and Eligibility of Affected Persons

This section provides the framework for entitlement for each category of impacts that have been

discussed already.

The criterion for eligibility for affected persons is contained in World Bank involuntary

resettlement policy and the GOE proclamation (proclamation 455/2005; Regulation No,

135/2007) as well as the guidelines set for land and housing replacement and compensation by

the Addis Ababa City Administration (Guideline No. 3/2010). Besides, subsequent guidelines

have been taken in to account to determine the entitlement and eligibility of project affected

persons.

To this effect, a census of PAPs had been conducted and an inventory was made on assets and

property that will be lost (which, in the context of this project, is basically loss of farmland and

grazing land as well as physical assets associated with demolishing of housing and dislocation).

The cutoff-date for compensation eligibility has been set after all detailed inventory of assets and

measurements and consultation meetings with the PAPs had been completed.

A cut-off date of July 31st, 2014 was set for all PAPs to respond to both the baseline survey and

the census documentations. Only PAPs that responded and met the cut-off date will be

considered for any form of compensation or assistance or person who for the first time occupies

the land after that date will not be eligible for compensation.

All project affected structure owners and users who lose land, building/houses, or sources of

income will be compensated or rehabilitated according to the type and amount of their losses

based on the census and inventory of lost assets conducted. All compensation/assistance shall be

paid before relocation/displacement so as to allow the family to construct new house before

evacuation from the present location.

The entitlement matrix in Table 11-1 below defines the eligibility for compensation and

rehabilitation assistance for impacts/losses for different types of assets for different category of

project affected persons.

Table 11-1: Entitlement Matrix

Land and

Assets Types of Impact

Person(s)

Affected Compensation/Entitlement/Benefits

Agricultural

land

Cash compensation

for affected land

equivalent to market

value

Less than 20% of

usage title

holder

Cash compensation for affected land

equivalent to replacement value, taking into

account market rates and compensation rates

as per government regulation.




Land and


Person(s)


land holding affected

Land remains

economically viable.

Tenant/ lease

holder

Cash compensation for the harvest or product

from the affected land or asset, equivalent to

ten times the average annual income s/he

secured during the five years preceding the

expropriation of the land.

Greater than 20% of

land holding lost

Land does not

become economically

viable.

Farmer/ Title

holder

Land for land replacement where feasible, or

compensation in cash for the entire

landholding according to PAP’s choice, taking

into account market values for the land, where

available

Land for land replacement will be in terms of

a new parcel of land of equivalent size and

productivity with a secure tenure status at an

available location which is acceptable to

PAPs. Transfer of the land to PAPs shall be

free of taxes, registration, and other costs.

Relocation assistance (costs of shifting +

assistance in re-establishing economic trees +

allowance up to a maximum of 12 months

while short-term crops mature )

Tenant/Lease

holder

Cash compensation equivalent to ten times the

average annual income s/he secured during the

five years preceding the expropriation of the

land.


assistance in re-establishing economic trees +

allowance up to a maximum of 12 months

while short- term crops mature

Commercial

land

Land used for

business partially

affected

Limited loss

Title holder/

business owner

Cash compensation for affected land, taking


available.

Opportunity cost compensation equivalent to

5% of net annual income based on tax records

for previous year (or tax records from

comparable business, or estimates where such

records do not exist).

Business owner

is lease holder


10% of net annual income based on tax

records for previous year (or tax records from

comparable business, or estimates where such

records do not exist).

Assets used for

business severely

affected

Title

holder/business

owner

Land for land replacement or compensation in

cash according to PAP’s choice; cash

compensation to take into account market

values for the land, where available. Land for




Land and


Person(s)


If partially affected,

the remaining assets

become insufficient

for business purposes.

land replacement will be provided in terms of

a new parcel of land of equivalent size and

market potential with a secured tenure status

at an available location which is acceptable to

the PAP.

Transfer of the land to the PAP shall be free of

taxes, registration, and other costs.


allowance)


2 months net income based on tax records for

previous year (or tax records from comparable

business, or estimates)

Business

person is lease

holder




business, or estimates), or the relocation

allowance, whichever is higher.

Relocation assistance (costs of shifting)

Assistance in rental/ lease of alternative land/

property (for a maximum of 6 months) to

reestablish the business.

Residential

land

Land used for

residence partially

affected, limited loss

Remaining land

viable for present use.

Title holder Cash compensation for affected land, taking


available.

Rental/lease

holder

Cash compensation equivalent to 10% of

lease/ rental fee for the remaining period of

rental/ lease agreement (written or verbal)

Title holder Land for land replacement or compensation in

cash according to PAP’s choice; cash

compensation to take into account market

values for the land.

Land for land replacement shall be of

minimum plot of acceptable size under the

zoning law/s or a plot of equivalent size,

whichever is larger, in either the community

or a nearby resettlement area with adequate

physical and social infrastructure systems as

well as secured tenure status.

When the affected holding is larger than the

relocation plot, cash compensation to cover

the difference in value.

Transfer of the land to the PAP shall be free of

taxes, registration, and other costs.


allowance)




Land and


Person(s)


Land and assets used

for residence severely

affected

Remaining area

insufficient for

continued use or

becomes smaller than

minimally accepted

under zoning laws

Rental/lease

holder

Refund of any lease/rental fees paid for

time/use after date of removal

Cash compensation equivalent to 3 months of

lease/ rental fee

Assistance in rental/ lease of alternative land/

property


allowance)

Buildings

and

structures

Structures are

partially affected

Remaining structures

viable for continued

use

Owner Cash compensation for affected building and

other fixed assets taking into account market

values for structures and materials.

Cash assistance to cover costs of restoration of

the remaining structure

Rental/lease

holder

Cash compensation for affected assets

(verifiable improvements to the property by

the tenant), taking into account market values

for materials.

Disturbance compensation equivalent to two

months rental costs

Entire structures are

affected or partially

affected

Remaining structures

not suitable for

continued use

Owner Cash compensation taking into account

market rates for structure and materials for

entire structure and other fixed assets without

depreciation, or alternative structure of equal

or better size and quality in an available

location which is acceptable to the PAP.

Right to salvage materials without deduction

from compensation


allowance)

Rehabilitation assistance if required

(assistance with job placement, skills training)

Rental/lease

holder

Cash compensation for affected assets

(verifiable improvements to the property by

the tenant)


allowance equivalent to four months rental

costs)

Assistance to help find alternative rental

arrangements

Rehabilitation assistance if required

(assistance with job placement, skills training)

Squatter/inform

al dweller

Cash compensation for affected structure

without depreciation

Right to salvage materials without deduction

from compensation





Land and


Person(s)


assistance to find alternative secure

accommodation preferably in the community

of residence through involvement of the

project

Alternatively, assistance to find

accommodation in rental housing or in a

squatter settlement scheme, (if available)

Rehabilitation assistance if required assistance

with job placement, skills training)

Street vendor

(informal

without title or

lease to the

stall or shop)




business, or estimates), or the relocation

allowance, whichever is higher.

Relocation assistance (costs of shifting)

Assistance to obtain alternative site to re-

establish the business.

Standing

crops

Crops affected by

land acquisition or

temporary acquisition

or easement

PAP (whether

owner, tenant,

or squatter)

Cash compensation equivalent to ten times the

average annual income s/he secured during the

five years preceding the expropriation of the

land.

Trees Trees lost Title holder Cash compensation based on type, age and

productive value of affected trees plus 10%

premium

Temporary

acquisition

Temporary

acquisition

PAP (whether

owner, tenant,

or squatter)

Cash compensation for any assets affected

(e.g. boundary wall demolished, trees

removed)

Loss of

Livelihood

Households living

and/or working on the

project area,

including title

holders/non-title

holders/daily laborers

working in the market

Rehabilitation

Assistance

Training assistance for those interested

individuals for alternative income generating

activities; providing employment

opportunities on the construction site for the

PAPs.




12 Compensation Framework and Asset Valuation

12.1 Approach to Compensation

The primary objective of this RAP is to restore the income and living standard of the affected

persons. The first step in such a process is to compensate for assets and properties that will be

lost by the PAPs due to the implementation of the proposed project. This, of course, will be

followed by other income and livelihood restoration provisions.

The strategy adopted for compensation of the affected properties /assets follows the Federal

Government and Regional Government laws and regulations. The RPF developed for this project

has been utilized at length. The compensation approach adopted in this RAP reflects the FDRE’s

Proclamation 455/2005; Regulation No, 135/2007, the proclamation issued by Addis Ababa City

Administration and WB policy on involuntary resettlement (OP 4.12).

All properties and assets (houses, crop/grazing lands, farm trees etc.) affected by the project

should be assessed and valued at full replacement cost based on current market price.

In addition, PAPs will be entitled to transitional assistance which includes moving expenses,

residence, employment training and income support. In general, the compensation approach will

address the following four questions:

what to compensate for (e.g. land, structures, business, fixed improvements or temporary

impacts, lost income);

how to compensate;

when to compensate; and

how much to compensate.

12.2 Principles of compensation

According to the legal and policy requirement of Ethiopian government and the World Bank, the

principles of compensation and entitlements established for the project are as follows.

The extent and amount of compensation offered by the project to affected landowners

and users will depend on the amount and type of land and /or assets that are impacted.

Land owners and users will be compensated for lost assets based on the Ethiopian law

and World Bank’s involuntary policy; and, in the case of a discrepancy between the two,

it is the World Bank’s policy which will prevail.

PAPs are adequately informed on eligibility, compensation rates and standards.

No land acquisition or works will take place prior to compensation and resettlement of

the PAPs.

The principles in appraising the properties affected by the KIZ and in preparing the

compensation include;

Compensating for any losses in net income since the provision of equivalent replacement

land for long term losses was not possible under this project’s objective reality and




Focus on restoring annual income or livelihood restoration which includes other

supporting measures.

12.3 Basis for Valuation of Losses

This is a core section of the RAP in which the framework for valuation and compensation of

assets affected by the project are presented in detail. Proper valuation needs to be undertaken in

order to provide PAPs with adequate compensation for the assets they would lose based on

resettlement policies and regulations. The strategy adopted for the expropriation and

compensation of the affected properties/assets follows the Federal Government laws and

regulation for valuation and compensation estimate. In addition to the FDRE laws and

regulations, the law and regulations of the City Government and other supplementary guidelines

as well as WB policies are considered to properly consider replacement cost for the lost assets.

This RAP builds on World Bank's policy on involuntary resettlement (OP/BP 4.12). The Bank's

policy addresses the need for the treatment of project impacts, which cannot be avoided. The

policy objectives of OP 4.12 are either to avoid or minimize involuntary resettlement; if carried

out to execute as sustainable development program and to provide assistance to displaced

persons so that they could be able to restore or improve their livelihood. Hence, the basis for

valuation is the legal principles and framework for expropriation and compensation incorporated

in FDRE’s Proclamation 455/2005; Regulation No, 135/2007.

Accordingly, the Addis Ababa City Administration has established Land Development and

Urban Renewal Agency and has also been setting regulations and guidelines for executing

compensation and livelihood restoration activities. Hence, valuation of assets is done as per the

policies, legislations and regulations stated above. Based on the compensation proclamation, the

City Administration has employed the principle of replacement cost and compensation at market

cost for valuation of lost assets. Replacement cost approach is based on the premise that the costs

of replacing productive assets that have been damaged because of project activities need to be

fully compensated. The Replacement Cost Method is used in estimating the value of an asset

based on the assumption that the capital value of an existing development can be equated to the

cost of reinstating the development on the same plot at the current labour, material and other

incidental costs (market price) without depreciation. The estimated value represents the cost of

the property as if new, i.e. ignoring depreciation cost and also includes all transactional and

transitory costs.

12.4 The Valuation Process

In order to provide PAPs with adequate compensation for the assets they would lose, proper

valuation is undertaken by the compensation committee whose members have been identified

under the chapter on Institutions and Organizations for the RAP. The committee, in close

consultation with PAPs and in collaboration with the local experts and administration, reviews

and establishes the unit rate for the affected assets to be determined on the basis of replacement

cost at market value.




A) Compensation for farmland and grazing land to be lost permanently

As indicated earlier, 288ha of farmland and nearly 6ha of privately owned grazing land

strips will be expropriated permanently. The estimation for compensation of size of farm

land and grazing land was made as per Regulation No, 135/2007 which considers

productivity of the land and income to be lost. It is estimated by taking the average

annual income secured during the five years preceding the expropriation and multiplying

it by ten.

In order to provide PAPs with adequate compensation for the assets they will lose, proper

valuation had been undertaken by the property valuation committee. The committee, in

close consultation with the PAPs and in collaboration with the local experts and the

Woreda Administrations, reviewed and established the unit rate for the affected assets

which is determined on the basis of market value. The market value will be reviewed and

updated depending on the market price of the lost assets in the preceding five years.

Based on the survey results and data recorded) on the size of farmland and grazing land

to be expropriated from each PAP, the final compensation rate and the amount to be paid

is calculated. The size of the farmland and grazing land which will be lost and the

estimated amount of compensation is given in table 12.1 below.

Table 12-1: Estimated Compensation for farmland and grazing-land

N.B - The list of PAPs and estimated amount of compensation is given in the annex.

B) Compensation for housing structures

Buildings/houses of the 15 PAPs to be relocated and resettled are valued at replacement

cost based on the current market price of construction materials with which they had been

built. Materials utilized for construction of roofing, walls and fencing are measured by

surveyors and engineers from the Sub-city. Like what is done for farmland and grazing

land, final compensation rate and the amount to be paid for housing structures and

construction cost is calculated by Akaki Kality Sub-city Land Administration and

Management Office together with representatives of the PAPs in the compensation

committee.

Woreda No. of

HHs

Farm land Grazing Land

Area in m2 Compensation

in Birr

Area

in m2

Compensation

in Birr

Woreda 09 148 1,820,908.00 33,686,802.00 3,665.89 42,157.00

Woreda 10 97 1,060,041.00 19,610,754.00

50,398.52

579,583.00

Woreda 09 and 10 245 2,880,949.00 53,297,556.00 54,064.41 621,740.00

Total land area 2,935,013.41

Total

Compensation

53,919,296.00




The payment to be effected for housing structures which includes building cost plus 20%

variant is estimated to be Birr 1,046,992.00. In addition to the compensation amount

calculated for housing structures, 12 months/one year/ house rent, has been determined

based on the formulae which is set every year based on assessments of house rent in the

respective areas which is to be endorsed by Council of Addis Ababa City Administration.

Accordingly, PAPs in the project area will be entitled to a house rent of 12 months based

on a formulae, i.e. Built-up area of each PAP (m2) x 40 Birr x 12 months. Thus, the total

bulilt-up area of the 15 HHs is estimated to be around 1200m2. Therefore, an estimated

amount of Birr 576,000.00 needs to be paid in the form of house rent and a total of Birr

7,500.00 is allotted for transportation and mobilization.

C) Land provision for resettlement

With regards to the resettlement site, it is to be noted that as per the Master Plan of the

Addis Ababa city Administration, Akakai Kality Sub-city possesses a large area allotted

for the development of industries. The coming of new industries has been increasing in

the last few years. As a result, a resettlement site, where basic infrastructural services

such as water supply, electricity, etc., have been installed, has already been identified for

the people to be displaced from KIZ development site and other areas.

Hence, the host community has already been aware of new comers and the 15 households

that will have to be relocated will not face any protest from the host neighborhood. The

PAPs are going to be resettled in the neighborhood which is called ‘Yeshi TOTAL’ area

of Akaki Kality Sub city, which is around 5kms away from the existing settlement area of

the PAPs. In this regard, no complaint has been received, neither from the host

community and nor from the PAPs.

Land allotment for the PAPs for the construction of new houses at the resettlement site

will be made based on the size of lost property, inheritance status and family size of

PAPs, i.e. as per the Regulation 3/2010 of Addis Ababa City Administration.

Accordingly, household heads with a family size of more than five (8 out of the 15 HH)

will be entitled to 375m2 area of land and households with less than 5 family size (1 HH)

will be entitled to 250 m2 area of land.

Any relation with inheritance approved by court will also be entitled to a 250m2 of land.

Any married son or daughter of the household head who used to reside in houses built in

the same compound (6 out of the 15 HH fall in this category and are entitled to get 105m2

of land for the construction of new house in the proposed resettlement area. The purpose

of such considerations reflects the sensitive concern given by the government so as to

minimize further vulnerability due to displacement, induced family disruption,

homelessness and insecurity.




13 Livelihood Restoration Program

This chapter consists of the plan for income restoration for PAPs and communities affected by

the project. Livelihood restoration is an important component for the resettlement of PAPs who

have lost their productive base, jobs, or other income sources, regardless of whether they have

also lost their houses or not. The livelihood restoration program is the most important as far as

the RAP of KIZ is concerned as indicated the livelihood of more than 1200 persons has been

negatively affected due to productive agricultural land acquisition and dislocation.

Experience in other RAPs conducted elsewhere in the country shows that it is a program which

for many reasons is either overlooked or is not properly implemented to address the needs of

PAPs. The basis for the livelihood restoration program has to be basically the World Bank′s

involuntary resettlement Policy OP 4.12 which shall be adhered to. Among the objectives of this

policy, the most important one with respect to livelihood restoration program is the objective that

states the need to assist displaced persons in improving their former living standards, income

earning capacity, and production levels, or at least in restoring them.

Where it is not feasible to avoid resettlement, resettlement activities should be conceived and

executed as Sustainable Development Programs, providing sufficient investment resources to

enable the persons displaced by the project to share in project benefits. They should also be

assisted in their efforts to improve their livelihoods and standards of living or at least to restore

them, in real terms, to pre‐displacement levels or to levels prevailing prior to the beginning of the

project implementation, whichever is higher.

The general objective of the plan is to enable PAPs not only to restore their income but also to

improve their standard of living through a set of integrated strategies and assistance measures by

the project implementing agency.

In livelihood restoration, issues such as source of livelihood (monetary and non-monetary),

availability of land for replacement (if possible), existing skills of PAPs, employment

opportunities and income restoration options will be considered. For PAPs who have lost their

assets, income restoration plans or programmers may require support services in the long and

short term basis as discussed under the chapter on mitigation of impacts.

The short term support plans include provision of employment opportunities at project

construction site. Long-term income restoration involves land and non-land-based economic

activities that will provide a sustained source of income over a longer period of time.

The livelihood restoration program recommended is based on the results of surveys regarding the

socio-economic characteristics of the PAPs, basically their capacities, preferences and objective

reality on the ground in terms potential business environment. These include a range of

possibilities as detailed below. The most important is the implementation of small business plans

that include awareness creation, training, project formulation support, availing of working area

and other required facilities and funding.




More importantly, livelihoods restoration activities have been selected by communities

themselves, guided by a list of potential activities as options, with sensitization carried out and

informed by exposure to professional and technical services provided by the project. Based on

activities selected, groups and/or individuals develop appropriate plans and trainers with

expertise in specific livelihood activities will be retained for short periods to provide hands-on

instruction for participants.

As indicated in the chapter on mitigation, a survey has been conducted in order to assess job

preferences of PAPs that would be considered for different employments required for livelihood

restoration. The following options were listed based on the choice of PAPs during a meeting

session with the community. These include:

Engagement in urban agriculture (fattening, dairy, chicken farm and horticulture)

Trade businesses (buying and selling of cereals and other food crops, livestock, etc)

Services (food preparation, hair dressing, tailoring, etc)

Construction Activities (masonry, carpentry, plumbing, electrical work, metal work,

cobble stone, etc)

However, the result of the survey questionnaire for job preference showed that 100% of the

PAPs put engagement in urban agriculture as their first preference. Others were included as

second and third preferences. This is basically due to the fact that the PAPs have lost only part of

their farmland. As indicated earlier, all PAPs have been reported to have a minimum of 1ha of

agricultural land under their possession in areas which are not very far from the project locality.

Besides, only 15 of the 245 HHs are to be relocated and this group will also have some

remaining farmlands in their place of origin. Moreover, the area of land that will remain as part

of the homesteads is also large (ranging from 500 to 1000m2). Thus, a given HH will keep hold

of an average landholding size of 1.5ha, which can be considered for further livelihoods

restoration actions with the support to be provided by the government.

Though other livelihood restoration measures will be taken on the basis of comprehensive needs

assessment that is to be done in the near future, for budgeting purposes only, introducing

businesses in urban agriculture has been proposed for a potential 245 households considering at

least one urban agriculture business for one HH. Such business recommendation has been made

in consultation with the PAPs and based on their interests reflected during consultations.

However, in order to mitigate the negative impacts that might emanate from the implementation

of the KIZ, putting in place a comprehensive package/program for livelihood restoration through

capacity buildings and tailored trainings will be important and recommended. Therefore, a

detailed assessment on the needs of the PAPs should be made for which budget support is

included.

It is also recommended that the detailed study on comprehensive package program on livelihood

restoration consists of five fundamental categories, which are discussed below.




13.1 Implementation of an awareness creation program

There is a felt need to give assistance and orientation to PAPs on ways and means of coping with

social related problems and new realities. PAPs will have to be aware on how to cope with the

socioeconomic problems that may face them after relocation.

Hence, the provision of awareness creation workshops and other efforts with the involvement of

experts in the required areas of knowledge and the Administration through its resettlement and

livelihood restoration case team becomes very important.

13.2 Organizing the project affected people (PAP) in SME

As has been indicated in the section on the status and conditions of PAPs, more than 65% of the

PAPs are in the category of the working age group. As per the questionnaire survey conducted,

most of the PAPs, especially the able bodied ones, have shown interest and desire to engage

themselves in Small and Micro Enterprises (SMEs) of urban agriculture type. As indicated

earlier, the homesteads and compounds of most of the PAPs are wide enough to accommodate

such activities. This could be a good start for the intended livelihood restoration programs.

Currently, in Ethiopia, SMEs are proving to be the driving forces of the country’s Gross

Domestic Product (GDP) and they are also the primary sources of new job creation. For these

reasons, the Government including the Addis Ababa City Government and sub-cities have

established responsible bodies in charge of SMEs. There is already policy and strategy as well as

mechanism for people affected by land expropriation and loss of asset income due to project

implementation to be organized in SMEs. Hence, the Small and Micro Enterprises Bureau and

office at both city and Sub city level respectively need to implement and coordinate such a study

and mobilize resources to implement such livelihood restoration programs based on the study.

There seems to be a good start in the planning and programming of such activities in Akaki –

Kaliti Sub city which could serve as a lesson to other areas as well.

13.3 Providing formal and non-formal training

The anticipated problem in restoring the livelihood of PAPs is the limitation in technical capacity

to engage in other field of activities and even in urban agricultural businesses preferred by the

PAPs. Therefore, capacity building of the PAPs through rigorous training in the respective field

of engagement should be the major part of the mitigation measures. The areas of interest of the

PAPs, both men and women, need to be reviewed and studied further. Then, development of

tailored formal and non-formal training will be essential to make job creation and livelihood

restoration programs successful. There are two government TVET centres within Akaki Kality

Sub city which have adequate experience in giving formal and informal trainings that suit to

most of the preferences indicated by the PAPs. The TVETs can be utilized for this purpose by

enhancing their capacity through the provision of required raw materials, machinery and tools,

additional facilities and manpower.




13.4 Providing employment in the Industrial Zone

As an outcome of the consultation process with the PAPs, participants raised their concern that

priorities for project benefits such as employment and other opportunities in the proposed

industrial zone may not be given to the PAPs. As indicated in the ESIA study of the same

project, employment in the proposed industrial zone and in the other proposed areas of work

should not be viewed as something complicated. As per the assessment of the education profile

of the PAPs, there are tens and hundreds of PAPs who already have basic education which can

serve as a springboard for the trainings and capacity buildings required for the jobs to be created.

Short-term training assessments have been conducted by the consultant with the collaboration of

the Technical and Vocational Educational Training (TVETs) and the Woreda Micro and Small

Scale Enterprises Promotion Office which assert the possibility of realizing the proposed

livelihood restoration program.

It has to be clearly endorsed institutionally that, given the same skill and capability to handle a

job, priority of employment has to be given to PAPs who have lost their means of income fully

or partially due to land acquisition by the IZ. This requires clear motivation and dedication on

the part of government. There should also be institutional interface designed to implement such a

program among relevant sectors in Akaki Kality Sub city.

13.5 Providing other employment

Along with the employment opportunity to be created in the IZ, the KIZDP is also ideal for off-

site job creation efforts due to the multitude of activities emerging in the surrounding area.

However, this has to be backed up through formal and non-formal training provisions for PAPs

owing to their little entrepreneurial and business skills to engage in non-agricultural activities .

Therefore, efforts shall be made:

To create employments in other off-site job opportunities expected to flourish in the

locality provision of different services required for the huge population to be employed in

the KIZ at different income levels such as catering for food and lodging, shopping,

entertainment, hair dressing, laundry, etc.

To create conducive atmosphere for PAPs to be self-employed in different areas of urban

agriculture activities such as dairy farm, fattening, chicken farm, etc which are very

prospective in terms of existing and future demand for their produces.

13.6 Taking care of vulnerable groups

Vulnerable groups need special attention and shall be considered for additional assistance to

ensure that they are supported to get utmost benefit from compensation entitlement and other

impact mitigation measures. This will be the responsibility of Akaki Kality Sub city and the

respective Woreda 09 and 10 Administrations. The assistance might include:

Priority in specific plot area selection in the resettlement site.

Relocation near to kin and former neighbors.

Assistance in dismantling and transporting salvageable materials from their original

home.

Priority for access to development assistance.




Besides, some of the entrepreneurial activities that will be designed as part of the livelihood

restoration effort need to be geared towards satisfying the needs of vulnerable groups.




14 Grievance Redress Mechanism

Conflicts or complaints may arise through the process of compensation for different reasons,

including disagreement on the compensation amount during valuation for assets, controversial

issue on property ownership, etc. To address the problem of PAPs during implementation of

compensation, a grievance redress committee has been established in project affected Kebelles.

The GRC is composed of representative of woreda Administration as chairman of the committee,

representative of woreda Agriculture and Rural Development Officer, representative of kebele

Administration, two representatives of PAPs, and an elder from the community. These

representatives need to make all preparations to hear complaints and facilitate solutions so as to

promote dispute settlement through mediation to reduce litigation. The main function of the

committee is arbitration and negotiation based on transparent and fair hearing of the cases of the

parties in dispute between PAPs and the implementing agencies for local government. The

committee gives solution to grievances related to compensation amount, delays in compensation

payment or provision of different type of resettlement assistance.

14.1 Grievances Redress Procedures

All PAPs have been informed that they can approach the chairman of the grievance committee or

the project implementer in case of any grievance regarding compensation. Any PAPs who have

grievance would present his / her cases to the grievance redress committee. The committee will

maintain a complaints register. It will examine the case and responds with in a period of 15 days.

If the PAPs are not satisfied with the decision of the Grievance Redress Committee/GRC/, they

can take the case to regular court. A pictorial view of the grievance redress procedures is given

below (See Figure 4-1).

Workflow of the Grievance Redress Committee

Figure 14-1: Flow Chart for Grievance Redress Steps

PAP not satisfied

Appeal to the Implementing

Committee (15 Days)

Re-examination by the committee

If PAP satisfied =

settled

PAP is not satisfied

Appeal to Grievance Redress

Examination by GRC

If PAP satisfied =

PAP still not satisfied

Appeal to regular court

15 Days

7 Days

15 Days

30 Days

15 Days




The objective of having the grievance procedure stated above seeks to address the following:

Provide PAPs with avenues for making compliant or resolve any dispute that may arise

Ensure that appropriate and mutually acceptable corrective actions are identified and

implemented to address complaints; Verify that complainants are satisfied with outcomes

of corrective actions; and avoid the need to resort to judicial proceedings.

14.2 Public Disclosure of RAP

Public disclosure of the RAP has to be made to PAPs and other stakeholders for review and

comments on entitlement measures and other issues in the implementation of the RAP. The

purpose of the disclosure is to receive comments and suggestions from PAPs and incorporate the

appropriate suggestions.

MoI will publicly disclose this RAP, in English and in local languages (Amharic and Oromiffa)

and make copies available and distribute with a letter accompanied to Akaki Kality Sub city and

Woreda 9 and 10 authorities. This could be done by: a) publishing it on MoI's website (in

English and in local languages); b) publishing it in local newspapers; c) announcing it on local

radio stations and d) depositing/posting it in a range of publicly accessible places such as, Sub

city, Woreda offices and Kebele offices.

Once this RAP is disclosed, the public have to be notified both through administrative structures

and informal structures about the availability of the RAP documents and also be requested to

make their suggestions and comments. Once disclosed in Ethiopia, the FDRE will authorize the

WB to disclose at the Info-shop in Washington DC and make it accessible to all interested.




15 Monitoring and Reporting Plan

Monitoring and Evaluation: Monitoring and evaluation will be a continuous process. The

Project management unit will be responsible for the overall supervision of the implementation of

the RAP.

After completion of the resettlement/relocation operations, it is expected that PAP’s will have a

better or improved way of life compared to their previous situation. Therefore, relocation

operations need to be monitored and evaluated to determine if PAP’s have been able to

reestablish their livelihood and living situation.

In order to guarantee that the compensation plan is smoothly performed and the benefit of the

affected persons be well treated, the implementation of the compensation plan will be under

monitoring throughout the whole process. Monitoring will be divided in two parts i.e. internal

and external monitoring.

Internal Monitoring

The internal monitoring will be performed by the Akaki Kality Sub city Resettlement and

Livelihood Restoration Case Team or by other convenient arrangements such as employing a

consultant. The concerned local Administration (Woredas) will also conduct their own

monitoring. The target of internal monitoring is to ensure that there is overall fairness and

transparency while compensation process, takes place and Resettlement Action Plan is

performed based on legal rights.

The main monitoring issues would be compensation allocation schedule, payment and use of

compensation fee, implementation of the policies and regulation specified in the resettlement

plan and the whole course of implementation of the compensation.

The main source of data for internal monitoring will be the data base generated from the RAP,

for e.g., records on compensation for assets as well as the day today observation by

implementing staffs.

The resettlement office will record the progress of land allocation and resettlement. The office

will make a summary report starting from the beginning of the activities and special events will

be reported on continuous basis to the responsible office of the City Administration

The format of the report has to be prepared in terms of the requirement of the World Bank. The

format usually comprises detail description of resettlement progress and compensation payment,

problems and difficulties met in the implementation process and corresponding resolution

methods and measures.




External Monitoring

External monitoring should be the joint responsibilities of the Sub city, City and Federal MoI

which will undertake all basic supervision on the impact of the project on PAPs and income

restoration, degree of satisfaction of PAPs during implementation of resettlement include

payment of compensation.

Social experts of Addis Ababa City Administration should also undertake the resettlement

monitoring work with the resettlement implementing team. The main responsibility is to assess

the performance of the resettlement implementation team based on the consolidated report and

take corrective measures in case of problems.

The major monitoring area includes;

The over all fairness and transparency of the compensation process;

Progress of compensation payment; support for vulnerable groups.

Appropriateness of grievance redress mechanisms; and

Problems and difficulties encountered.




16 RAP Implementation Schedule

As can be gathered from the RAP study, a number of important activities are required in order to

realize the action plan. Activities such as the relocation and resettlement of people affect the

entire livelihood of people and are sometimes very sensitive unless the phases of implementation

are well planned and executed in a properly thought out priority and sequence in such a way that

the implementation of the preceding activity lays the ground and paves the way for the

successful implementation of the next activity. Furthermore, such activities have to be performed

with a higher degree of involvement of all concerned especially the Woreda Administration

offices and compensation (or property valuation) committees.

A tentative time schedule within which the different activities of resettlement will be

implemented can be taken as six months starting from April 2015 and ending sometime in

September 2015. In view of the urgency to realize the construction and functioning of the

industrial zone, all the compensation payments, relocation of PAPS could be completed ahead of

the civil works if implemented as per the plan shown in the RAP. The re-establishment/re-

housing during the transition period is minimized and believed to be adequate if proper support

is provided.

The proposed time schedule is presented below is the outcome of discussions and consultations

made with the most important stakeholders to the RAP, basically the MOI and the Sub city and

the project Woeredas. The time schedule proposed is viewed as appropriate assuming that each

and every actor to the plan plays its role ardently and adequate support is mobilized on time. It

also takes in to consideration the activities that were going on simultaneously during the time of

the RAP study such as the establishment of committees, awareness creation, inventory of assets

and notification.

Table 16-1: Proposed Implementation Schedule of RAP

Tasks/Activities Months (year 2015)

April May Jun July Aug Sept

Establish project level resettlement

implementation unit, and valuation as well as

grievance redress committees

Final Inventory of PAP and affected assets

Notification on the property rights and

agreement b/n PAPS and affected assets.

Sub city finalize budget for compensation and

agreed on mechanism of payment

Compensation payment

Construction of new residential houses N.B: The cut of date for census survey of assets was end of July 2014.




17 RAP IMPLEMENTATION BUDGET

The cost estimate for RAP given hereunder is based on the requirements of proposed mitigation

activities and recommended livelihood restoration programs.

Resettlement Action Plan Budget

The cost estimate for implementing the present RAP is made based on the requirements of

proposed mitigation activities. Accordingly, the total budget estimate is Birr 67,584,207.00 (Sixty

seven million five hundred eighty four thousand and two hundred seven Birr only).

The following table summarizes the total amount of the funds that are required for the

implementation of this RAP.

Table 17.1: Cost Estimate (budget) for RAP

No. Cost Item Cost Estimate in

Eth. Birr Remarks

1. Compensation for permanent loss of

farmland

53,297,556.00 Replacement cost for

loss of income

2 Compensation for permanent loss of

grazing land

621,740.00 Replacement cost for

loss of income

3 Cost estimate for housing and other

structures (building cost )

1,046,992.60 Replacement cost

4 Cost estimate for house rent of 12 months 576,000.00 15hhs x 40birr x 12

months x builtup area

(m2)

5 Transport and mobilization for 15

households who required resettlement

7,500.00 15x500 = 7,500.00

6 Cost estimate for livelihood restoration

programs (orientation, skill training and

other capacity building programs) of 245

PAPs), health and safety sensitization

programs, etc.

245,000.00 Average cost for 25

trainees per month is

around Birr 25,000.00

(Birr 1000.00/head

from TVET)

7 Cost for other awareness and sensitization

programs

50, 000.00 Lump sum

8 Support for vulnerable groups 100, 000.00 Lump sum

9 Cost for need assessment study to identify

additional livelihoods restoration measures

study recommended

125,000.00 Lump sum

10 Loan fund for establishment of 245

businesses based on agricultural

production (fattening, dairy cows, chicken

farm, mushroom production, irrigated

agriculture, etc) preferred by PAPs as per

survey result. 80% of (30,000x245 =

7,350,000)

5,880,000.00 Based on Birr 30,000

average business

establishment cost given

by the office of micro

and small scale

enterprises.

11 Cost estimate for supervision, monitoring

and evaluation

50,000.00 Lump sum

Total 61,440,188.60

10% contingency 6,144,018.86

Grand Total 67,584,207.46




18 Conclusions and Recommendations

Given the very low industrial development in the country at large, the development of industries

and manufacturing that would help for import substitution, export earnings, job creation and

overall livelihood and development in the country is long overdue. As a result, the development

of the KIZ is most welcome due to the anticipated benefits that can enhance the growth and

development of the country in general and the project communities and surrounding areas in

particular.

However, a project as big as the establishment of an Industrial Zone will not come without some

significant negative impacts. The negative impacts are mainly related to displacement of people;

loss of farm land, houses and properties.

Therefore, this RAP has identified significant socio-economic impacts and provides for

mandatory mitigation and compensation measures. One should work for ways and means of

avoiding or minimizing the anticipated negative impacts by properly implementing the proposed

RAP thereby ensuring the social and environmental sustainability of the project.

As per our assessment, the population residing in the project area and many of the stakeholders

in the area would like to see the construction of the project as soon as possible. Public

consultations held with different groups of the local community, and government officials as

well as professional experts working in the project, indicate that the local population, PAPs and

other stakeholders have expressed positive support for the project. There is no significant social

and environmental issue that would prevent the implementation of the project as long as the

negative impacts are managed and proposed RAP measures are adhered to by all concerned

bodies.




References

1. Addis Ababa City Administration Land and Hosing Replacement and Compensation

Regulations.

2. Addis Ababa Environmental Protection Authority (AAEPA), Estimation of Pollution in

Little and Great Akaki Rivers, Unpublished Report, Addis Ababa (2003)

3. Anubha and C.P. Kaushik, Environmental Science and Engineering, Second

Edition, New Age International (P) Limited, Publishers, 2006, New Delhi.

4. Chekole ZF. (2006) Controlling the informal sector. Solid waste collection and the Addis

Ababa City Administration.

5. City Government of Addis Ababa Sanitation Beautification and Parks Development

Agency, Solid Waste Management Status Report of Addis Ababa: The Way Forward,

2006

6. Council of Ministers Regulation No. 135/2007.

7. Dereje Nigussa Hunde, Aquifer Vulnerability Assessment in Akaki River Catchment,

Addis Ababa (finfinne): implications for land use and water quality management

(Abstract), October 2007, Addis Ababa, Ethiopia.

8. Dr. Mulatu Abegaz, “Akaki River Said Toxic” the State of Industrial Pollution in

Ethiopia (summary report), The Monitor- Addis Ababa, January 17, 1999.

9. Environnemental Assessment Proclamation, Proclamation No. 299/2002

10. Environnemental Impact Assessment Guideline Document, EPA July 2000

11. Environnemental Pollution Control Proclamation No. 300/2002

12. G.N. Pandey, Environmental Management, Vikas Publishing House PVT LTD,

2005, New Delhi.

13. Metal concentrations of some vegetables irrigated with industrial liquid waste at Akaki,

Ethiopia. Ethiopian Journal of Science 96 Vol. 21(No. 1): 133 144.

14. Ministry of Industry (MoI), Environmental and Social Management Framework

(ESMF) for Bole – Lemi and Kilinto Industrial Zone development, November,

2013, Addis Ababa.

15. Ministry of Industry (MoI), Resettlement Policy Framework (RPF) for Kilinto

Industrial Zone development, December 2013, Addis Ababa.

16. Proclamation No. 455/2005, A Proclamation to provide for the Expropriation of

Landholdings for Public Purposes and Payment of Compensation

17. Proclamation provided for the Establishment of Environmental Protection Organ,

Proclamation No. 295/2000

18. The conservation Strategy of Ethiopia, volume II, Federal Policy on Natural resources

and the Environment, EPA ,1996

19. The environmental Policy of Ethiopia, EPA, 1989.



Ministry of Industry, Addis Ababa, Ethiopia January 2015 Page 63

ANNEX SECTION




ANNEX- 1: LIST OF CONSULTED PERSONS (besides consultation meetings)

S No. Name Position/Institution Telephone No.

1. Ato ZinabuMekonen MoI, D/Director, Industrial Zone Corporation

2. Wt. Adunga Mengiste MoI, Environment Safeguards

3. AtoTenaeYimam MoI, Industrial Zone Development Expert 0963041174

4. Ato Mulluneh _------- Chief Executive, Akaki Kality Sub city 0911130258

5. Ato Yosef Argaw Manager, Akaki Kality Sub city 0911693117

6. Ato AregaTeklemariam Compensation Project Officer, Akaki Kality 0913564084

7. Ato SasahuTilaye Livelihood Restoration (Resettlement) Case

Team Officer, Akaki Kality Sub city

0911747136

8. Ato HabtamuTolessa Chief Executive, Woreda 09 Administration 0917555310

9. AtoDebebeYami Chief Executive, Woreda 10 Administration 0913144350

10. Ato Matias Zemede Public Relations Advisor

11. Ato Zemedie Bitew PAP affected by resettlement

12. Ato Alemu Abdi Trade and Industry Officer, Akaki-Kalit Sub city 0911753285

13. Ato Tarekegn Micro and Small Scale Enterprises Head, Akak-

Kaliti Sub city

0935481461

14. AtoTibebuTefera Head Finance and Economy, Woreda 10 0923273130

15. AtoTeshomeGeremew Health Service Delivery Process Owner, Akaki

Health Center

0911859225

16. Ato AbiyuYenealem Public Relations Officer, Addis Ababa Science

and Technology University

0924526480

N.B.Many farmers who came across during the sight visit and assessment work were also contacted and

interviewed.




ANNEX- 2: MINUTES OF CONSULTATION MEETINGS

1. CONSULTATIONS WITH AKAK-KALITI SUB CITY LEADERSHIP

Project: Kilinto Industrial Zone Development

Date: 07/02/14

Location: Akaki Kality Sub- city Chief Executive Office

Time: 10:00am

Attendees:

1. Ato Muluneh Chief Executive, Akaki Kality Sub city

2. Ato Yosef Argaw Manager, Akaki Kality Sub city

3. Ato AregaTeklemariam Compensation Project Officer, Akaki Kality

4. Wro. Senayit Solomon Head Youth, Women and Children’s Affairs

5. Ato HabtamuTolessa Chief Executive, Woreda 09 Administration

6. Ato DebebeYami Chief Executive, Woreda 10 Administration

7. Ato Tamerat Mulugeta Head TVET Office

8. Ato Teweldebirhan W/gerima Social Safeguards Consultant

Meeting Agenda and Purpose:

1. To discuss the nature and type of the Proposed Kilinto Industrial Zone Development

Project

2. To clearly present to the leadership of Akaki-Kality Sub-city about the potential positive

and negative impacts of the project

3. Gather their opinion and recommendations on the project in general and the modalities

of compensation for lost assets and properties and livelihood restoration of Project

Affected Population (PAPs) in particular




Brief Summary of the Meeting

The Chief Executive opened the meeting by explaining the purpose and expected outcomes of

the meeting and invited the Social Safeguards Consultant to briefly introduce the project at

hand and expectations. The Social Safeguards Consultant briefed the meeting participants on

the nature and type of the proposed Kilinto Industrial Zone Development, the rationale for the

implementation of the project, the potential positive impacts of the project at both country and

local level. He also explained the potential negative social and environmental impacts of the

project and how it would affect particularly the PAPs and the surrounding populations in the

form of permanent land acquisition and loss of asset and income, the requirement of

resettlement and the modalities of compensation as per the countries and World Bank’s rules

and regulations, etc,. Finally, he invited the Chief Executive to proceed with the facilitation of

the meeting in order to get the views and opinions and recommendations of the participants.

The Chief Executive, who acted as the chairperson of the meeting also reiterated about the

roles and responsibilities of the Sub city Administration with regards to the required support

and facilitation required in the process of the implementation of the project as well as the roles

and responsibilities of the line offices particularly that of the livelihood Restoration

(Resettlement) Case Team, Land management, Micro and Small Scale Enterprises, the project

Woredas and Technical and Vocational Education Training of the Sub- city.

Problems and challenges faced so far and required corrective measures in relation to the

ongoing preparation for resettlement and livelihood restoration measures particularly job

creation for PAPs were dealt at length and the meeting ended with deliberations of

recommendations and actions that need to be taken on the part of all responsible stakeholders

in the Sub city, city, MoI, and the PAP committees.

N.B. Results of the consultation meetings can be seen from the chapter on public

Consultations and the annexed minutes of the meeting below.




2. CONSULTATIONS WITH WOREDA 10 LEADERSHIP


Date: 05/02/14

Location: Woreda 10 Administration Office

Time: 9:00am

Attendees:

1. Ato DebebeYami Woreda Administrator

2. Ato Matias Zemede Head Public relations

3. AtoTadesse Tulu Head Micro and Small Scale Enterprise Office

4. Ato Lema Zemede Head Woreda health Office

5. AtoTilahun Chiquala Head Peoples Mobilization

6. Wro. YesuneshTekola Head Women, Children and Youth office

7. Ato Demes Gashaw Deputy Administrator

8. Ato Endeshaw Ababu Woreda Administration office Manager

9. Ato Addisu Balcha Head Woreda Justice Office

10. Ato Teweldebirhan W/gerima Social Safeguards Consultant

Meeting Agenda and Purpose:


Project

2. To clearly present to the leadership of Woreda about the potential positive and negative

impacts of the project

3. Gather their opinion and recommendations on the project in general and the modalities of

compensation for lost assets and properties and livelihood restoration of Project Affected

Population (PAPs) in particular





The Woreda Administrator opened the meeting by explaining the purpose and expected

outcomes of the meeting and invited the Social Safeguards Consultant to briefly introduce the

project at hand and expectations. The Social Safeguards Consultant briefed the meeting

participants on the nature and type of the proposed Kilinto Industrial Zone Development, the

rationale for the implementation of the project, the potential positive impacts of the project at

both country and local level. He also explained the potential negative social and environmental

impacts of the project and how it would affect particularly the PAPs and the surrounding

populations in the form of permanent land acquisition and loss of asset and income, the

requirement of resettlement and the modalities of compensation as per the countries and World

Bank’s rules and regulations, etc,. Finally, he invited the Woreda Administrator to proceed with

the facilitation of the meeting in order to get the views and opinions and recommendations of the

participants.

The Woreda Administrator, who acted as the chairperson of the meeting also reiterated about the

roles and responsibilities of the Woreda Administration Administration with regards to the

required support and facilitation required in the process of the implementation of the project as

well as the roles and responsibilities of the Woreda line offices particularly that of the Woreda

Land Management, Public Relations, Peoples Mobilization and Organization, Micro and Small

Scale Enterprises, etc,.

Problems and challenges faced so far and required corrective measures in relation to the

preparation for ongoing resettlement and livelihood restoration measures particularly job creation

for PAPs were dealt at length and the meeting ended with deliberations of recommendations and

actions that need to be taken and follow- up necessary on the part of all responsible stakeholders

in the Woreda, Sub city, city, MoI, and the PAP committees.

N.B. Results of the consultation meetings can be seen from the chapter on public Consultations

and the annexed minutes of the meeting below.




3 CONSULTATIONS WITH PROJECT AFFECTED POPULATIONS


Date: March 24, 2014

Location: Kilinto Primary School

Time: 10:00am

Attendees:

1. Ato DejeneDollo Woreda Representative

2. Ato TeweldebirhanWeldegerima Social Safeguards Consultant

3. PAPs Committee Members and around 56 number of PAPs and their representatives (see

annex)

. Meeting Agenda and Purpose:


Project

2. To clearly present to the PAPs about the potential positive and negative impacts of the

project

3. Gather their opinion and recommendations of the PAPs on the project in general and the

modalities of cooperation in relation to the ongoing resettlement and livelihood restoration

program.


The Woreda Representative opened the meeting by explaining the purpose and expected

outcomes of the meeting and invited the Social Safeguards Consultant to briefly introduce the

project at hand and expectations to the PAPs. The Social Safeguards Consultant briefed the PAPs

and Committee members on the nature and type of the proposed Kilinto Industrial Zone

Development, the rationale for the implementation of the project, the potential positive impacts

of the project at both country and local level. He also explained the potential negative social and

environmental impacts of the project especially at local level in relation to PAPs and how it

would affect particularly the PAPs and the surrounding populations in the form of permanent




land acquisition and loss of asset and income, the requirement of resettlement and the modalities

of compensation as per the countries and World Bank’s rules and regulations, etc,.

The Woreda Representative, who acted as the chairperson of the meeting also reiterated about

the roles and responsibilities of the Woreda Administration with regards to the required support

and facilitation required in the process of the implementation of the project as well as the roles

and responsibilities of the Woreda line offices particularly that of the Woreda Land

Management, Public Relations, Peoples Mobilization and Organization, Micro and Small Scale

Enterprises, the PAP committee and the PAPs themselves.

Finally he invited the Woreda Representative to proceed with the facilitation of the meeting in

order to get the views and opinions and recommendations of the participants.

The PAPs unanimously expressed that it has to be clearly understood that their livelihood is

based on agriculture i.e. on the crops they produce from the land and the animals they rear still

on the same land. They expressed their entitlements to the land have to be respected. But in the

event there is no other alternative and if their land needs to be taken for project purposes they

would agree to the condition based on fair compensation and livelihood measures that would be

implemented based on existing policies and regulations.

Among the most important points raised by the PAPs are

Invariably PAPs made it clear that they know that the development activities going on in

their respective areas and the surroundings are for the benefit of the country at large and

the population around in terms of job creation and improvement in livelihood.

Performance of similar projects in compensation and livelihood restoration in and around

their areas was rated as poor and recommended lessons should be drawn and the current

RAP has to be implemented in a better and more efficient way.

It was revealed that PAPs who lost larger part or all of their farmland with areas as large

as 1000m2 under their homestead possession expressed their opinon that such a land can

be utilized for livelihood restoration programs or businesses with livelihood restoration

support from the government if this is taken in to account in the RAP.

The meeting also emphasized the need for ownership and commitment of government to

ensure the timely release of the necessary funds for implementing livelihood restoration

plan within a short period of time.

Participants raised concern that priorities for project benefits such as job employment and

other opportunities may not be given to the affected (local residence) and clearly stated

that they will cooperate in measures that will be taken for livelihood restoration.

Problems and challenges faced so far and required corrective measures in relation to the ongoing

resettlement and livelihood restoration measures particularly job creation for PAPs were dealt at

length and the meeting ended with deliberations of recommendations and actions that need to be

taken and follow- up necessary on the part of all responsible stakeholders in the Woreda, PAP

Committee, etc.

N.B. Results of the consultation meetings can be seen from the chapter on public Consultations

and the annexed minutes of the meeting below.




Annex 3: minutes of meetings


























































Annex - 4: LIST OF PAPS, LOSS OF ASSETS AND PROPERTY AND COMPENSATION ESTIMATE


































Annex - 5: Map of Kilinto Proposed Resettlement Site




Annex - 6: Copies of directives on Compensation & Land Acquisition endorsed by Addis Ababa City

Administration Cabinet


























































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