Azura Power West Africa Ltd.
Addendum to the Resettlement
Action Plan (RAP) for the Azura-Edo
Independent Power Plant
ERM Document: 0190440_130730_V6.00
July 2013
www.erm.com
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Azura Power West Africa Ltd.
Addendum to the Resettlement
Action Plan (RAP) for the
Azura-Edo Independent Power
Plant
ERM Document: 0190440_130730_V6.00
For and on behalf of
Environmental Resources Management
Approved by: Sarah Murfitt
Signed:
Position: Partner
Date: 30 July 2013
This report has been prepared by Environmental Resources
Management the trading name of Environmental Resources
Management Limited, with all reasonable skill, care and diligence
within the terms of the Contract with the client, incorporating our
General Terms and Conditions of Business and taking account of
the resources devoted to it by agreement with the client.
We disclaim any responsibility to the client and others in respect of
any matters outside the scope of the above.
This report is confidential to the client and we accept no
responsibility of whatsoever nature to third parties to whom this
report, or any part thereof, is made known. Any such party relies
on the report at their own risk.
CONTENTS
1 INTRODUCTION 4
1.1 RATIONALE 4
1.2 APPROACH 5
1.3 LIMITATIONS 6
2 BASELINE 7
2.1 INTRODUCTION 7
2.2 ADMINISTRATIVE STRUCTURE 8
2.3 DEMOGRAPHICS 8
2.4 COMMUNITY NETWORKS AND LINKAGES 10
2.5 INCOME GENERATING ACTIVITIES AND LIVELIHOODS 11
2.6 INFRASTRUCTURE 22
2.7 EDUCATION 25
2.8 HEALTH 25
3 RESETTLEMENT IMPACTS 27
3.1 INTRODUCTION 27
3.2 OVERVIEW OF KEY DISPLACEMENT IMPACTS 27
3.3 KEY DISPLACEMENT IMPACTS: DETAIL 28
3.4 SUMMARY 31
3.5 VALUATION METHOD 37
4 RESETTLEMENT SITES 38
4.1 CALCULATING INTERNATIONAL STANDARDS COMPENSATION AMOUNTS 46
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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1 INTRODUCTION
1.1 RATIONALE
ERM recently worked with Azura Power West Africa Ltd (hereafter referred
to as “Azura” or “the Project”) to develop an Environmental Impact
Assessment (EIA) and Resettlement Action Plan (RAP) for a 450 MW gas-fired
power plant in Nigeria.
The project site comprises two plots: Plot A and Plot B, as shown in Figure 1.1.
The RAP for the Project addressed resettlement impacts associated with Plot
A, which comprised two communities: Orior and Idunmwowina. A third
community, Ihovbor-Evboeka declined to be part of the resettlement process
at the time and so resettlement impacts associated with this community
(whose land claims are situated within Plot B) could not be addressed.
Since that time, Ihovbor-Evboeka has agreed to be part of the resettlement
process and Azura requested that the RAP be updated to include Plot B and
resettlement provisions for Ihovbor-Evboeka.
Subsequent to ERM’s production of the original RAP, Azura commissioned a
land and asset inventory of Ihovbor-Evboeka. This inventory was completed
by Adamu Kasimu & Associates. A corresponding social census was not
completed at this time. This Addendum presents the findings of the social
census that was carried out in February 2013 to expand the existing RAP to
include the community of Ihovbor-Evboeka. This Addendum should
therefore be read in conjunction with the original Project RAP (Resettlement
Action Plan for the Azura-Edo Independent Power Plant – finalised on 13
February 2012, and referred to hereafter in this document as “the 2012 RAP”).
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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Figure 1.1 Site Layout
The objective of this report is to capture the outcome of the social census in
Ihovbor-Evboeka as an Addendum to the 2012 RAP. It should be read as an
addition to Section 4: Baseline, Section 5: Resettlement Impacts and Section 6:
Resettlement Sites of the 2012 RAP; captured within Sections 2, 3 and 4 of this
report respectively.
1.2 APPROACH
In order to update the Azura RAP, a social census of 100% of the Ihovbor-
Evboeka households was conducted. In order to generate a comprehensive
picture of the community all the available households were included within
the survey, including those that contained land claimants and those that
contained no land claimants, based on the Azura asset survey (conducted
during 2011). This census of 100% of the households present in Ihovbor-
Evboeka therefore showed that the village included 116 households with a
total population of 766. Not all of these households included land claimants.
The asset survey listed 236 individual land claimants, but, based on
investigation during the social cenus, 124 of those claimants were identified as
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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living outside the project-affected area in Benin City (or elsewhere). Therefore
the social census was conducted with households that included the remaining
112 land claimants.
The social census questionnaire used previously for Orior and Idunmwowina
was used for this work in order to ensure consistency and comparability
between the two datasets.
The social census was conducted by a team of 4 people over 6 days in the
field, with an additonal 8 days of data capturing. ERM undertook daily
debriefing and review sessions of the completed questionnaires. Any
omissions or inaccuracies were corrected in the field. The team undertaking
the census were accompanied by two community members to witness and
assist procedings on behalf of the Enogie (local traditional leader) and the
community.
1.3 LIMITATIONS
Census limitations were identified in the field. The first was that the asset
survey was conducted independently of the social census and almost a year
beforehand. This meant that respondents had to participate in two separate
survey processes, which led to some stakeholder fatigue and required the
census team to keep their survey focused and concise. The survey team
included all questions within the survey form but on occasions had to omit or
hurry qualitative questions in order to avoid stakeholder fatigue.
Secondly, the social census team had to make sure that all respondents
corresponded with the appropriate claimant households on the asset survey.
This was made somewhat more time consuming by the fact that about 50% of
the claimants on the asset survey lived outside the project affected area in
Benin.
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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2 BASELINE
2.1 INTRODUCTION
The socio-economic baseline information presented below supplements the
information that was collected for the communities of Idunmwowina and
Orior in 2011, as part of the 2012 RAP. The purpose of this baseline is three-
fold:
1. To provide information needed for the entitlements matrix setting out
compensation options for affected stakeholders in Ihovbor-Evboeka;
2. To provide sufficient social and economic information for the design of
appropriate livelihood restoration and development initiatives;
3. To set out quantifiable demographic, economic, educational, occupational
and health indicators that can be used for future monitoring and
evaluation of RAP implementation.
The information in this section is drawn from the socio-economic baseline for
the 2012 RAP, as well as from the household census that was undertaken in the
community of Ihovbor-Evboeka in February 2013. Presentation of information
follows the same format used for the socio-economic baseline for the
communities of Idunmwowina and Orior. The following aspects of the
community are addressed in this section:
Administrative Structure;
Demographics;
Community Networks and Linkages;
Income Generating Activities and Livelihoods;
Infrastructure;
Education; and
Health.
The following sections present updated baseline information for Ihovbor-
Evboeka, with comparison against information gathered for Idunmwowina
and Orior as part of the 2012 RAP. In cases where the social context is the
same as that described in the 2012 RAP, this has been noted, along with
reference to the appropriate section of that document.
It is important to note that baseline information has been provided for both
households that contain land claimants as well as those that do not.
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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2.2 ADMINISTRATIVE STRUCTURE
2.2.1 Traditional Administrative Structure
An overview of the traditional administrative structure is consistent with that
provided in Section 4.2.2 of the 2012 RAP.
Ihovbor-Evboeka consists of a number of clans/groups – such as Oshodin,
Enobore and Oloha. Each of these is controlled by a traditional chief who sits
on the Elders Council with others who all report to and advise the Enogie. The
Oba of Benin is (referred to locally as His Royal Majesty, the Oba of Benin). He
is the overall traditional leader of all the Benin Kingdom and of all the Edo
people.
Figure 2.1 Traditional Leadership Structures Ihovbor-Evboeka
2.3 DEMOGRAPHICS
2.3.1 Population
Ihovbor-Evboeka has approximately 766 residents (approximately 112
households), making it the smallest of the three communities included in this
RAP. Of this population, only one household will be affected by physical
resettlement.
Large families are common within the affected Plots A and B. Whereas 36
percent of households covered in the first survey consisted of more than ten
people, in Ihovbor-Evboeka only 18 percent of households were of this size.
ENVIRONMENTAL RESOURCES MANAGEMENT AZURA POWER WEST AFRICA LTD.
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The majority of households in Ihovbor-Evboeka (22 percent) have fewer than
five members, in contrast with the other communities where the minority of
households (18 percent) were of this size. Therefore, the trend for the
community of Ihovbor-Evboeka is to have mid-sized households (between 5
and 9 members). Many households are multi-generational (1).
2.3.2 Gender
Overview
Overall, the census revealed that 49 percent of the individuals from the
affected community are female, which is similar to the 2010 national average
of 50 percent female. The household survey data indicated that there are nine
female – headed households in Ihovbor-Evboeka, which is 7.9 percent of total
households. This is slightly less than in the other surveyed communities,
where 12.8 percent of households were female-headed.
Marital Status
The majority of inhabitants over the age of 18 in Ihovbor-Evboeka are single
(48.7 percent, compared with 35.2 percent married), whereas the majority of
inhabitants in the first two communities surveyed were married. Divorce,
while uncommon (0.9 percent of those surveyed or 7 respondents) is
marginally higher in Ihovbor-Evboeka than in the other communities
surveyed, which reported no divorces. The percentage of widowed members
of Ihovbor-Evboeka (1.7 percent) is lower than the other two communities (4
percent).
2.3.3 Age Profile in Affected Households
The population age profile in Ihovbor-Evboeka is in line with national and
state averages and similar to that of the other surveyed communities, with the
general trend being a relatively young population.
Table 2.1 Age and Gender Breakdown of the Affected Population
0-5 yrs 12.1% Male: 65.5% Female: 34.4%
6-18 yrs 29.3% Male: 50.6% Female: 49.3%
19-50 yrs 44.6% Male: 47.0% Female: 53.0%
51+ yrs 13.5% Male: 52.0% Female: 48.0%
National data sourced from the World Bank, 2010
As noted in Table 2.1 , the working age population (19-50 years) represents
nearly 45 percent of the total community. This is slightly more than in the
communities of Idunmwowina and Orior, where the working age population
constitutes 41 percent.
(1) EIA Final Report 451MW Ihovbor Proposed Power Plant
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The working age population of Ihovbor-Evboeka is predominantly female (53
percent), compared with the working age population in Idunmwowina and
Orior, which is 57 percent male. This could be attributed to stakeholder
reports of young men of working age leaving the region in search of work or
training opportunities.
2.3.4 Ethnicity, Language and Religion
Within the community of Ihovbor-Evboeka, 81 percent identified themselves
as Bini. ‘Other’ was the second largest group (9.7 percent) and Ishan was the
third (5.7 percent).
In line with the other surveyed communities, peoples living in Ihovbor-
Evboeka include Urhobo, Ora, Efik, Kalaba, Ijaw, Hausa, Fulani and Yoruba
and some who identified themselves as unknown.
In Ihovbor-Evboeka, as with the other surveyed communities the majority of
residents are practicing Christians, with 90.8 percent attending church on a
regular basis, compared to only 2.6 percent who attend mosque on a regular
basis. Only 4.1 percent of those surveyed report that they visit traditional
shrines on a regular basis, of these the majority are men over the age of
eighteen. Similarly to the other surveyed communities, the low level of
traditional religious observance could be associated with the fact that
members of the community do not visit shrines regularly, but rather on
special holidays and when considered necessary.
2.4 COMMUNITY NETWORKS AND LINKAGES
2.4.1 Introduction
This section describes the social networks within and between communities in
the region. Information gathered for Ihovbor-Evboeka indicates that
membership and participation in social groups is essentially the same as in the
communities of Idunmwowina and Orior, and are characterized by a high
level of religious (Christian) – based socialization. As in Idunmwowina and
Orior, men are most likely to participate regularly in social groups.
2.4.2 Community Support Networks
A significant majority of residents report that they attend church on a regular
basis (91.5 percent). Men and women are almost equally represented within
this group (50.2 percent of the group is male and 49.8 percent is female). Only
2.6 percent of residents attend their mosque regularly. Within the group who
attend their mosque regularly, 45 percent are men and 55 percent are women.
Approximately 5.6 percent of residents participate in other types of social
groups and men were found to hold a slight majority within this group, with
56.8 percent. It is worth noting that while male participation in social groups is
spread amongst households (25 males from 25 households), female
participation tends to be grouped among members of the same household (19
women from 13 households).
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2.5 INCOME GENERATING ACTIVITIES AND LIVELIHOODS
2.5.1 Introduction
Based on information collected through household surveys, employment and
income levels in Ihovbor-Evboeka are lower than in the communities
surveyed in 2011. This is in contrast to reports from those residents of
Idunmwowina and Orior, who indicated that Ihovbor-Evboeka had benefited
disproportionately from the NIPP project (see Section 4.4.2 of the 2012 RAP). It
should be noted that data regarding levels of income are notoriously
unreliable and anecdotal evidence gathered during the household survey
indicated that households may be under-reporting income or over-reporting
expenditure for the purposes of perceived benefits that would be received in
terms of compensation or community investment.
2.5.2 Income Sources
The most common sources of income among surveyed respondents in
Ihovbor-Evboeka are agriculture (77.2 percent) and petty trading (63.1
percent). This mirrors the results from the other surveyed communities
(where agriculture provided income for 62.5 percent of respondents, and petty
trading 50 percent). Figure 2.2 illustrates the sources of household income.
Figure 2.2 Sources of Household Income in Ihovbor-Evboeka
The household survey allowed respondents to indicate that residents within a
household generated income from more than one source. Figure 2.3 shows not
only the primary, but also alternative sources of income for surveyed
households. It illustrates a comparison between household survey
respondents’ primary sources of income and their overall source of household
income.
Figure 2.3 Primary Source of Household Income
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Figure 2.3 illustrates that although 77.2 percent of households generate their
income from agriculture, it is only the primary source of income for 39.5
percent of respondents. For petty trading, 63.1 percent identified it as a source
of income, while only 7.9 percent identified it as their primary source of
income. This is similar to the differentiation seen in this category in the other
surveyed communities.
The third most common source of primary income for Ihovbor-Evboeka is
salary (19.3 percent). Artisan work was identified as the fourth most common
primary source of income, among 15.8 percent of households.
Although income generation between the three communities is similar, there
are some nuanced differences with respect to primary sources. For example,
labour wages were the second most common primary source of income in
Idunmwowina and Orior (approximately 27 percent). In Ihovbor-Evboeka,
labour wages are far less significant and account for only 7.9 percent of
primary income, the same percentage as petty trading. This may indicate that
Idunmwowina and Orior have benefited more from hiring for the NIPP
powerplant than Ihovbor-Evboeka.
According to survey respondents, the most common occupation in Ihovbor-
Evboeka was reported as ‘Other’ (49.2 percent). However, no information to
clarify ‘other’ was provided. In Idunmwowina and Orior, petty trading was
reported as the most common occupation (29.7 percent); in Ihovbor-Evboeka,
petty trading was reported to be the second most common occupation (14.2
percent).
Figure 2.4 illustrates the distribution of the other occupations in the
community of Ihovbor-Evboeka. There are not a lot of similarities between
the communities of Ihovbor-Evboeka and the other two surveyed
communities with respect to occupation breakdown. In Idunmwowina and
Orior, farming and construction were reported as key occupations, whereas in
Ihovbor-Evboeka these were relatively minor. It should be noted that 49.2
percent of respondents answered “Not Applicable”, or “No Answer” to this
question.
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Figure 2.4 Distribution of Occupations
2.5.3 Household Income and Expenditure
The household survey also considered Ihovbor-Evboeka’s monthly income
level. Figure 2.5 shows that the most common monthly household income was
indicated to be between N 30,000 and N 50,000 (USD189 and USD315). This is
the same as in Idunmwowina and Orior. In addition, and as in Idunmwowina
and Orior, a significant number of households in Ihovbor-Evboeka indicated
that they earned less than N 30,000 a month (44 percent); however, unlike the
other communities, very few households in Ihovbor-Evboeka indicated that
they earned more than N 50,001 per month (0.9 percent). This would indicate
that average income in Ihovbor-Evboeka is lower than in Idunmwowina and
Orior. This contradicts reports from residents of Idunmwowina and Orior
that Ihovbor-Evboeka had been favoured in the distribution of benefits from
the NIPP project.
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Figure 2.5 Distribution of Total Monthly Household Income
Based on currency conversion of N1.00 = 0.00630300 USD as of 19/01/13, from XE Currency Converter
In Figure 2.6 the largest reported expenditure for surveyed households was on
food, which represented 42.7 percent of expenditure. This was the same as in
Idunmwowina and Orior. The next two largest expenditures were
transportation (14.6 percent) and health care and medicine (9.7 percent). This
is broadly comparable to the other two surveyed communities’ monthly
expenditures.
The above holding true, issues related to the accuracy of reporting on income
and expenditures remain the same for Ihovbor-Evboeka as for the other
surveyed communities. That is that income may have been underreported as
a result of hesitancy among survey respondents to discuss income levels,
potentially due to a perceived risk from crime (as noted in the 2012 RAP, see
Section 4.5). It has also been noted that data regarding income and
expenditure is notoriously unreliable as respondents may feel uncomfortable
openly discussing or estimating numbers, because of socio-cultural
expectations and associated taboos.
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Figure 2.6 Monthly Household Expenditures
2.5.4 Income Generation and Gender
The household survey indicated that there were nine female-headed households (FHH) in Ihovbor-Evboeka, which equals approximately eight percent of the total heads of households. This is lower than in Idunmwowina and Orior where the household survey data indicated that there are 12 female headed households within the surveyed area; equating to approximately 12.8 percent of the total number of households.
As is the case in Idunmwowina and Orior, FHH in Ihovbor-Evboeka typically
generate much less monthly income than male-headed households (MHH).
The comparison between monthly income generation between female and
male heads of households is shown in Figure 2.7.
As indicated, FHH are more likely to earn less monthly income than MHH,
and there are no FHH in the top earning bracket. This represents a significant
difference with the communities of Idunmwowina and Orior, where 29.1
percent of FHH reported earnings in excess of N 50,000 (USD314).
In addition, both male and female residents of FHH typically earn less
monthly income than their counterparts in MHH. Figure 2.8 illustrates this
comparison. This same trend was identified in the other two surveyed
communities.
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Figure 2.7 Comparison of Monthly Household Income Distribution
Figure 2.8 Comparison of Personal Income Distribution
Not only did residents of FHH report less monthly income, but only 5.9
percent of respondents indicated income in excess of N 30,000 (USD189),
compared to 8.4 percent of residents of MHH. This same trend was seen in
the other two surveyed communities.
It should be noted that 306 out of 766 survey respondents provided
information on income – percentages have been provided based on those who
provided information (rather than the total survey respondents). The
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omissions are assumed to be children or those household members still
involved in full time education.
2.5.5 Agriculture and Animal Husbandry
Agriculture is an essential livelihood activity in Edo State and in Ihovbor-
Evboeka. According to surveyed respondents in Ihovbor-Evboeka only 12
percent of households do not practice some form of agricultural cultivation.
In addition, approximately 39.5 percent of households identified agriculture as
a primary source of income. This is similar to the trend that has been
identified in the communities of Orior and Idunmwowina. Common types of
agricultural activities are shown in Table 2.2. These are the same types of
agricultural activity commonly practiced in the communities of Orior and
Idunmwowina.
Table 2.2 Agricultural Activity by Household
Activity Number of Households
Arable Crops 100
Cash Crops 99
Subsistence Crops 99
Animal Husbandry 52
2.5.6 Land Cultivation
Cultivation practices are generally the same in Ihovbor-Evboeka as they are in
the communities of Orior and Idunmwowina (see Section 4.5.3) of the 2012
RAP.
2.5.7 Land Tenure and Ownership
The 2012 RAP provides useful background information about the land tenure
process in the region. This can be found in Section 4.5.4 of that document.
Nearly 53 percent of households in Ihovbor-Evboeka report holding legal land
title for their cultivated land; approximately 30 percent rent their land and one
respondent identified that they owned their land, but without legal title. Zero
percent of respondents in Ihovbor-Evboeka reported that they hold no
agricultural land (though it should be noted that such could be the case
among non-respondents). These land tenure trends are similar to those
identified in the communities of Orior and Idunmwowina (see Section 4.5.4 of
the 2012 RAP). It should be noted that total percentages do not equal one
hundred, as not all of the households responded to this question.
2.5.8 Crops
Arable Crops
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The most common type of arable crop in Ihovbor-Evboeka is cassava. Figure
2.9 sets out the key crops in Ihovbor-Evboeka as a percentage of the total
household cultivation. As the graph indicates, the second most cultivated
crop is maize (74.6 percent), followed by yams (62.3 percent). This is similar to
crop cultivation in Orior and Idunmwowina, with the exception of vegetables,
which are far more prevalent in those two communities (at 71 percent) than in
Ihovbor-Evboeka, where vegetables are the fourth most common arable crop,
at 58.8 percent.
Figure 2.9 Arable Crop Cultivation
Note that many households cultivate multiple crops, which is why the total percentage is over 100 percent
Subsistence Crops
Cassava is the most important crop grown for household subsistence, as
reported by 82.4 percent of households in Ihovbor-Evboeka. Maize is the
second choice and yams the third, at 39.5 percent and 29 percent respectively.
The trend is similar in the communities of Orior and Idunmwowina; however,
as noted above, vegetables reportedly play a larger role in subsistence crop
production in those two communities than in Ihovbor-Evboeka.
Cash Crop
As in Orior and Idunmwowina, plantains/bananas are the most popular cash
crop in Ihovbor-Evboeka (80 percent, refer to Figure 2.10). Also in line with
the communities of Orior and Idunmwowina, this is followed by palm oil (8.8
percent). The other types of cash crops produced in Ihovbor-Evboeka include
cocoa, kola nuts and coconuts. In this way, cash crops in Ihovbor-Evboeka
differ from those produced in Orior and Idunmwowina, where the production
of rubber and sugar cane as cash crops were more prevalent.
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Figure 2.10 Cash Crop Cultivation
2.5.9 Income from Agricultural Activities
As noted in Section 2.5.2 (Figure 2.2), nearly 40 percent of households earn their
primary source of income from agricultural activities.
Income is primarily earned through the sale of crops (94 percent of
households) and none of the crops cultivated in Ihovbor-Evboeka are sold
through intermediaries (i.e. middle-men). This is a difference between
Ihovbor-Evboeka and the communities of Orior and Idunmwowina, which
either sell their crops to intermediaries or direct to the consumer.
As in Orior and Idunmwowina, the majority of households in Ihovbor-
Evboeka (48 percent) sell their crops in Benin City. 34 percent stated they sell
their crops to surrounding villages (34 percent) and very few (two percent) of
the crop sales from Ihovbor-Evboeka are made in Ehor town market. This is in
contrast to Orior and Idunmwowina, which sell 23 percent of crops in Ehor
town market.
2.5.10 Animal Husbandry
The types of livestock kept by residents of Ihovbor-Evboeka are similar to
those kept in Orior and Idunmwowina. The most common type of livestock in
Ihovbor-Evboeka is poultry (39 percent of households), followed by goats (29
percent of households keep at least one). Four percent of households keep
pigs and two percent keep rabbits or cane rats. There were no reports of
sheep being kept (while two percent of households in Orior and
Idunmwowina reported having sheep). Approximately 26 percent of
households do not keep any livestock.
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2.5.11 Entrepreneurial Activity
Entrepreneurial activity is a significant source of income for households in the
community of Ihovbor-Evboeka, providing income for approximately 89
percent of households. The main types of entrepreneurial activities reported
in Ihovbor-Evboeka are listed in Table 2.3 and mirror those activities found in
the communities of Orior and Idunmwowina.
Table 2.3 Entrepreneurial Activity
Activity No. of Households Percentage of Surveyed
Households
Mechanic 9 7.9 percent
Petty Trading 109 95.6 percent
Hair dressing 15 13.2 percent
Handicrafts 4 3.5 percent
Transport 17 14.9 percent
2.5.12 Employment and Unemployment
Employment levels are low in Ihovbor-Evboeka, as they are in Orior and
Idunmwowina. Approximately 41 percent of respondents over the age of 18
have some type of employment (full-time or part-time), and of those positions,
75.5 percent are temporary.
Approximately 37 percent of respondents in Ihovbor-Evboeka are employed
on a full-time basis, which is slightly higher than those with full-time
employment in Orior and Idunmwowina (27 percent).
Among those who are full-time employed, 88.3 percent have permanent
positions; this is similar to Orior and Idunmwowina, where 83 percent of full-
time workers have permanent positions. Only 8.9 percent of full-time workers
in Ihovbor-Evboeka have temporary positions. The remaining 2.8 percent
provided no response.
Part-time employment accounts for just over four percent of employment in
Ihovbor-Evboeka, which is similar to that reported in the other two surveyed
communities. Among the part-time employed, only 12.1 percent report
having permanent positions; the remaining part-time workers have
temporary, seasonal or otherwise occasional work.
2.5.13 Other Sources of Income
Certain households receive income from sources other than entrepreneurial
and employment activities. These other sources of income are the same for
Ihovbor-Evboeka as for the communities of Orior and Idunmwowina and
include:
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remittances (money received from family members outside of the village)
provide a source of income for seven percent of households;
pensions (received from past employment) provide a source of income for
six percent of households; and
real estate revenue (from rental/lease of property/land) provides a source
of income for approximately two percent of households.
No households reported receiving income from savings, which is the same as
the other two surveyed communities. This further reinforces reports that
banks are inaccessible and rarely used by stakeholders.
2.6 INFRASTRUCTURE
2.6.1 Introduction
As with the communities of Orior and Idunmwowina, Ihovbor-Evboeka’s
infrastructure is not substantial. The supply of electricity is sporadic although
access is fairly widespread. No households surveyed in Ihovbor-Evboeka
reported having piped water in their homes. The roads within the community
and those linking them to the wider region are poorly maintained, making
them particularly difficult to traverse during the rainy season.
2.6.2 Power
Approximately 68% percent of respondents in Ihovbor-Evboeka reported that
their household has access to a public electricity supply from the Power
Holding Company of Nigeria (PHCN) (note that not all survey respondents
provided answers to these questions this is the number who reported using
electricity for lighting). This places Ihovbor-Evboeka significantly higher than
the survey results for the communities of Orior and Idunmwowina, with
respect to access to power, as Orior-Osemwende (1). has no supply of
electricity and in Idunmwowina, only 31 percent of survey respondents use
electricity for lighting. This may be explained by the time gap between the
surveys in the community, during which the provision of electricity locally
may have increased (as indicated by some of the anecdotal observations made
during the household census).
As with the communities of Orior and Idunmwowina, kerosene is the most
popular fuel in the community of Ihovbor-Evboeka, and is used by 68.4
percent of households for cooking, and 44.7 percent of households for lighting.
Electrical generators are used by 6.3 percent of households in Ihovbor-
Evboeka: this is much less common than in the other surveyed communities,
where 32 percent (2) of respondents use generators for their lighting needs (see
Section 4.6.2 in the 2012 RAP).
(1) Orior-Osemwende has since received access to public power from PHCN
(2) Note that some of these communities have since received cabled power supply.
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In Ihovbor-Evboeka, 74.6 percent of respondents reported using wood for
cooking, compared to only five percent of respondents in the other two
communities.
2.6.3 Telecommunications
As with the other two surveyed communities, almost all households in
Ihovbor-Evboeka (96.5 percent) have at least one mobile phone.
Radios are a popular source of information and communication; 85 percent of
households in Ihovbor-Evboeka have at least one radio, which mirrors the
data collected from the other two surveyed communities. Slightly fewer
households in Ihovbor-Evboeka own televisions (80 percent), than in the
communities of Orior and Idunmwowina (in which 92 percent of households
reported owning a television).
2.6.4 Housing
The most common type of house in Ihovbor-Evboeka is made with brick (72
percent), followed by mud homes, which account for approximately 28
percent of homes in the community. These percentages are slightly lower
than for the other two communities, where 90 percent of homes are brick and
eight percent are mud.
In Ihovbor-Evboeka, similarly to the two other surveyed communities, the
houses made of brick tend to belong to families of high socio-economic status
(reporting a higher income) while those made of mud belong to families of
lower socio-economic status.
2.6.5 Transport
The conditions of roads are generally considered to be ‘satisfactory’ by 74.6
percent of respondents. 9.6 percent considered road conditions to be ‘good’,
while 8.8 percent consider them to be unsatisfactory. As with the other
surveyed communities, motorcycles are the most common mode of
transportation in Ihovbor-Evboeka with 35 percent of households owning at
least one. Cars are owned by 29 percent of households, while 12 percent of
households have bicycles. These results are in line with the survey results
from the communities of Orior and Idunmwowina.
2.6.6 Water
According to those surveyed, public wells are the most common source of
water; and are relied upon by 97.4 percent of households. This is very
different from the results for Orior and Idunmwowina, where it was observed
that there were no wells for public use, and the majority of water was sourced
from water vendors or tanks.
There is more access to piped water in the other two communities than in
Ihovbor-Evboeka, where zero percent of households have piped water in their
homes. Two percent have piped water access outside of their homes (on their
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property), which is a similar percentage to the other two surveyed
communities (three percent).
2.6.7 Sanitation Facilities
Within Ihovbor-Evboeka, the majority of households use dry pit latrines (56
percent). Pit latrines are also the most common type of sanitation system in
Orior and Idunmwowina (used by 70 percent of households). More
households in Ihovbor-Evboeka have access to individual water born sewage
systems (44 percent) than do residents of Orior and Idunmwowina (23
percent).
There are no community toilets in Ihovbor-Evboeka, whereas in the
communities of Orior and Idunmwowina, four percent use community toilet
facilities.
2.6.8 Cultural Infrastructure
Traditional worship and practices around sacred sites are described in Section
4.6.8 of the 2012 RAP.
Ihovbor-Evboeka has the highest number of sacred sites of the three
communities surveyed, with 14 sacred sites within and around the village
(this is compared to five sites reported in Orior and five sites reported in
Idunmwowina). In addition to those named in Table 2.4 below, others include
Awakaba, Oto, Edigbo, Osapana, Owowo, Ahoza, Egbon, Osunewah and Efai.
Table 2.4 Cultural Sites in Ihovbor-Evboeka
Name of sacred site
worshipped in
community
Location Materials used for
worshipping
Time of year/
frequency of worship
Osun–Ewuare Forest Goat, sheep, cow,
chicken
April-May/ annually
Osun–Ukokomo Forest Goat, sheep, cow,
chicken
November/ annually
Ovia Forest Dog, chicken, tortoise
March/ annually
Edion House Goat, antelope,
chicken
February/ annually
Isakpana House Chicken, corn
January/ annually
Edion-Ugbo Road Junction Male goat
June/ annually
Ake Forest Chicken
August/ annually
Ovator Forest Dog, chicken
October/ annually
Osun-Egbon Road Junction Male goat, chicken
December/ annually
Source: NIPP, 2010
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2.7 EDUCATION
2.7.1 Facilities
Within Ihovbor-Evboeka, there is a primary school that accepts attendees from
across the village, however there are no other schools. It is likely that this
contributes to the lower levels of education and training in comparison with
the communities of Orior and Idunmwowina.
2.7.2 Education Levels
Among residents of Ihovbor-Evboeka over the age of 19, approximately 38
percent have completed secondary school. This is lower than in Orior and
Idunmwowina, where 61 percent of residents over age 19 have completed
secondary school.
Of the 38 percent of people in Ihovbor-Evboeka who have completed
secondary school, 29 percent have college or university degrees, compared
with only 14 percent of secondary school graduates in Orior and
Idunmwowina.
In Ihovbor-Evboeka, 25 percent of residents over the age of 19 have only
primary school education or less, which is similar to the communities of Orior
and Idunmwowina.
Professional/ vocational training levels in Ihovbor-Evboeka are low, even
compared with the low levels in Orior and Idunmwowina. Only 13 percent of
surveyed residents (aged 19 or older) report having received some kind of
professional training, and 76.5 percent have no professional training
whatsoever. In Orior and Idunmwowina, 28 percent of residents over age 19
had some professional training, and 72 percent had none.
2.8 HEALTH
2.8.1 Health Status
The health profile of Ihovbor-Evboeka appears to be slightly better than that
of Orior and Idunmwowina. Within Ihovbor-Evboeka, only nine percent of
residents were reported as being sick in the previous month, compared with
16 percent reported in the communities of Orior and Idunmwowina. It should
be noted, of course, that the elapsed time between surveys of Orior and
Idunmwowina, and of Ihovbor-Evboeka mean that certain variables may have
changed to affect this comparison.
Of the nine percent who had fallen ill in Ihovbor-Evboeka in the past month,
the reported illnesses are considered common ailments within Edo State (see
Table 2.5, which lists the common diseases in Ihovbor-Evboeka).
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Table 2.5 Common Diseases in the Ihovbor-Evboeka
Disease No. of Individuals
Malaria 3.8% (29 respondents)
Typhoid fever 0.65% (5 respondents)
Heart disease/ hypertension 0.52% (4 respondents)
Rheumatism 0.52% (4 respondents)
Arthritis 0%
Fever and cough 0.52% (4 respondents)
Skin conditions 0%
Diarrhea 0.13% (1 respondent)
Pneumonia 0%
As in Orior and Idunmwowina, there were no reported cases of HIV/AIDS,
although the absence of reporting could be due to stigma associated with the
condition.
2.8.2 Facilities
When they do fall ill, the majority of respondents in Ihovbor-Evboeka
reported that they would usually consult the public hospital (67.2 percent).
This is a marked difference from Orior and Idunmwowina, where only three
percent said they would do the same. 14 .2 percent of respondents would
consult a private hospital (compared with 11 percent in Orior and
Idunmwowina). Approximately six percent regularly consult with informal
medicine shops or pharmacies. In general, then, residents of Ihovbor-Evboeka
seem to make more use of formal medical care than do residents of Orior and
Idunmwowina (see Section 4.8.2 of the 2012 RAP). The most common reasons
cited for selection of health care were accessibility, cost and effectiveness.
Only four percent of residents in Ihovbor-Evboeka said that they would not
consult with a health care provider when ill compared with 18 percent in
Orior and Idunmwowina.
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3 RESETTLEMENT IMPACTS
3.1 INTRODUCTION
It is critical that the resettlement planning process arrives at a detailed
understanding of the likely impacts that the Project will have on those
subjected to physical and/ or economic displacement. This enables
development of appropriate compensation and livelihood restoration plans,
which in turn ensure that the affected people are provided with the support
needed to re-establish their homes, lives and means of existence post
resettlement, mitigating the impacts that resettlement may cause.
This section draws upon: (i) the affected community baseline outlined in
Section 2; (ii) additional information gathered through the socio-economic
fieldwork, engagement and consultation process to date; and (iii) the asset
valuation work conducted in order to inform the entitlement requirements of
each eligible group. This section seeks to identify and describe the key
displacement impacts that the affected people may experience, the predicted
scale of these impacts, and the measures required to mitigate these impacts
and ensure that the resettlement process is transformed into a mechanism for
social development. More specifically, this section includes the following:
an overview of the Project’s key displacement impacts in Ihovbor-Evboeka and the relative magnitude of these impacts;
a more detailed elaboration of each of these displacement impacts, with reference to appropriate sections of the 2012 RAP to provide an indication of the general form that appropriate compensation / mitigation / livelihood restoration measures should take, in order to ensure Project adherence to the requirements of international best practice; and
the Project entitlements matrix.
3.2 OVERVIEW OF KEY DISPLACEMENT IMPACTS
As discussed in previous sections, a proportion of Ihovbor-Evboeka is set to
experience displacement impacts because of the Project’s land acquisition
process. Table 3.1 provides a high-level overview of the displacement impacts
that the community is expected to face, along with the predicted scale of these
impacts in terms of number of affected households / people.
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Table 3.1 Key Displacement Impacts and Associated Magnitude
Key Displacement Impacts Displaced Community
Loss of (occupied) residential housing
Physical displacement 1 household
Loss of agricultural land Economic displacement 187 land claimants
Loss of crops/ trees 204 land claimants
Loss of business structures 3 business structures (2 kiosks, 1 office)
Owners of other (non-habitable) physical assets: non-occupier of land
43 land claimants
Loss of community resources/ assets
26 community assets (17 shrines, 3 church buildings, 6 tombs)
In the following sections, each of these displacement impacts will be examined
in more detail. Where possible, indication will be provided as to the types of
compensation, mitigation and livelihood restoration measures that the Project
will be required to provide for each type of displacement impact.
3.3 KEY DISPLACEMENT IMPACTS: DETAIL
3.3.1 Loss of Residential Housing
Summary of Impact
There is one household in Ihovbor-Evboeka that is resident on the Project Plot
and will face physical resettlement. The affected house has a corrugated metal
roof and earth floor. With only one household to be physically resettled, the
overall significance of this impact may be viewed as low; however, the impact
on the affected household will be high, and will include (i) practical upheaval
related to the need to pack up the contents of the house and move to a new
location; and (ii) emotional upheaval associated with the loss of a ‘sense of
space’, and the feelings of security and familiarity that are attributed to being
‘at home’ in a particular physical context. It is also important to consider the
relative vulnerability of the affected household to the impacts of physical
resettlement. Although the household contains an influential community
member (the chief priest), broadly the village has limited income and job
opportunities and, therefore fewer resources at its disposal to facilitate
adjustment. Consequently, this household may require a commensurate
degree of assistance.
International Best Practice: Appropriate Project Interventions
The 2012 RAP for the communities of Idunmwowina and Orior sets out
international best practice for Project intervention and compensation for
physical resettlement. Please refer to Section 5.3 of the 2012 RAP for more
detailed information. The entitlements associated with this type of loss are set
out in Row A of Table 3.3 (Entitlement Matrix) in this document.
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3.3.1 Loss of Agricultural Land
Summary of Impact
As indicated in Table 3.1, 391 people will lose access to agricultural land as a
result of the Project land acquisition. This implies a total loss of 267,290 square
meters. In comparison, Orior-Osemwende is set to lose 313,302 square meters,
and Idunmwowina will lose 66,886 square meters. Overall, approximately 41
percent of agricultural land acquired by the Project will be from Ihovbor-
Evboeka.
The majority of affected land is used for crop cultivation; as noted in Section
2.5.2 of the 2012 RAP. Agricultural activities are a key source of livelihood and
income in the community of Ihovbor-Evboeka, generating income for 77.2
percent of households, and constituting the primary source of income for
nearly 40 percent of households.
International Best Practice: Appropriate Project Interventions
The 2012 RAP for the communities of Idunmwowina and Orior sets out
international best practice for Project intervention and compensation for
economic resettlement from rural agricultural land. Please refer to Section 5.3.2
of the 2012 RAP for more detailed information. The entitlements associated
with this type of loss are set out in Row B of Table 3.3 (Entitlement Matrix) in
this document.
3.3.2 Loss of Standing Crops and Trees
Summary of Impact
In addition to the agricultural land itself, standing crops and trees will also be
lost as a result of the Project land acquisition process. A total of 204 people
claim such losses, implying that approximately 88 percent of total claimants
will suffer this type of economic impact. Losses of crops and trees may also
have an impact on overall food security in the area.
International Best Practice: Appropriate Project Interventions
The 2012 RAP for the communities of Idunmwowina and Orior sets out
international best practice for Project intervention and compensation for loss
of land improvements, including standing trees and crops. Please refer to
Section 5.3.3 of the 2012 RAP for more detailed information. The entitlements
associated with this type of loss are set out in Row C of Table 3.3 (Entitlement
Matrix) in this document.
3.3.3 Loss of Non-Agricultural Income/ Livelihood Sources
Summary of Impact
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In addition to the loss of agricultural land and crops/ trees, the Project land
acquisition will require removal of two small-scale trading kiosks and one
office, which served as the base for Ihovbor-Evboeka contractors. The impacts
of this economic resettlement will include business upheaval; particularly
where these structures are small scale enterprises, and owners may require
additional support to reestablish their businesses.
International Best Practice: Appropriate Project Interventions
The 2012 RAP for the communities of Idunmwowina and Orior sets out
international best practice for loss of livelihood assets. Please refer to Section
5.3.4 of the 2012 RAP for more detailed information. The entitlements
associated with this type of loss are set out in Row D-F of Table 3.3 (Entitlement
Matrix) in this document.
3.3.1 Loss of Community Resources/ Assets
Summary of Impact
The Project’s land acquisition will result in the loss of a number of community
assets. Table 3.2 details the affected community resources and assets.
Table 3.2 Affected Community Resources/ Assets in Ihovbor-Evboeka
Community Resource/ Asset Description
3 church buildings • Approx. 174 m2, made of compressed cement blocks. Under care of Daniel Osagioduwa
• Assembly of God Church. Approx. 242 m2, made of compressed cement blocks. Represented by Mark Agho
• Passion of God Ministry. Approx. 176 m2, made of cement blocks.
17 community/ family shrines • Family Shrine claimed by Uhunoma James
• Family Shrine “Osun”, claimed by Uwugiarien Family
• Family Shrine “Ukokomon”, claimed by Uwugiaren Family
• Community Shrine “Osun”
• Community Shrine ”Ibiemen”
• Family Shrine “Umukoro”
• Family Shrine, claimed by Yanbiyu Osairume
• Family Shrine “Oduduwamen”, claimed by Osasere Uyigue
• Family Shrine “Adabi”, claimed by Ivie Osagie
• Family Shrine “Sango”, claimed by Eki Osawaro
• Community Shrine “Ovato”, represented by Efisa Uyigwe
• Family Shrine, claimed by Osayande Family
• 4 Shrines claimed by Chief Nelson Iduwe
• Shrine “Eziza”, claimed by Patrick Otasawie
6 Tombs • Tomb claimed by Felix Obasuhan
• 2 Tombs claimed by Chief Nelson Iduwe
• Tomb claimed by Mrs. Itohan Williams
• 2 unmarked tombs, claimed by Anthony Osifo
These community resources are an important source of cultural, community
and family identity. Where physical relocation or restricted access is required,
this should be managed in careful consultation with affected stakeholders.
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International Best Practice: Appropriate Project Interventions
The 2012 RAP for the communities of Idunmwowina and Orior sets out
international best practice for loss of community resources or assets. Please
refer to Section 5.3.5 of the RAP for more detailed information. The
entitlements associated with this type of loss are set out in Row G of Table 3.3
(Entitlement Matrix) in this document.
3.4 SUMMARY
This section summarised the key impacts associated with the resettlement in
Ihovbor-Evboeka. In order to reduce duplication of effort, it refers to relevant
sections of the 2012 RAP for Idunmwowina and Orior to provide an overview
of international best practice guidance on how such impacts ought to be
managed and addressed. The Entitlements Matrix that was developed for the
2012 RAP is shown in Table 3.2. The matrix has been updated to reflect the fact
that the Project MOU, which was originally to be signed with the leadership of
Orior Community and Idunmwowina Community, will now also be signed
with Ihovbor-Evboeka Community (see Row B of the table). No other changes
are required, as the Project approach to entitlements has not changed since the
2012 RAP.
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Table 3.3 Entitlements Matrix
Section Eligible Group Type of
Loss
Nigerian
Government
Compensation
Provision
Azura Power West Africa Ltd Replacement and Rehabilitation Assistance
A House owner:
customary right of
land occupancy
Housing The cash value of
the affected house
will be provided, as
per the EDSG
assessment and
valuation process.
AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation
into account) will underlie the provisions for loss of housing. The Project will supplement, where
necessary, the Government-provided compensation amount with an additional provision to ensure that the
total amount of cash received by the affected house owner is equivalent to the full replacement value of the
affected house. In addition, the Project will provide those experiencing physical displacement with:
(i) advice and support with financial planning, to enable them to employ their cash compensation to
construct a good quality new dwelling;
(ii) an additional financial bonus to those physically displaced households, if they elect to invest their
cash compensation in the construction of a new house; and
(iii) the foundations of houses at the resettlement site, to enable those experiencing physical displacement
to construct their houses with ease and with use less of their compensation money.
Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided. House owners will be allowed to dismantle and
transport parts of their buildings prior to demolition by the Project.
Disturbance allowance: A cash amount will be provided to cover disturbance caused.
B Agricultural land
occupier:
customary right of
land occupancy
Agricultural
land
Nothing will be
provided to
compensate for the
loss of the affected
agricultural land
itself.
AND Full replacement cost: The principle of full replacement (without taking depreciation into account) will
underlie the provisions for loss of agricultural land. The project will ensure that agricultural land occupiers
are paid a cash sum that is sufficient to allow them to acquire a plot of agricultural land that has a
combination of productive potential, locational advantages and other factors at least equivalent to the
agricultural land being lost. This sum will also cover the soil preparation costs to ensure that the
replacement land is ready for cultivation. The Project will provide those losing agricultural land with
advice and support with financial planning, to enable them to employ their cash compensation to re-
establish their livelihoods. In addition, the Project will sign an MoU with the leadership of the Orior
Community, Idunmwowina Community and Ihovbor-Evboeka Community, under the terms of which
those affected by the loss of agricultural land will be ensured the right to acquire land at a rate that is less
than the compensation (for loss of land) that is paid to them by the Project. Moreover, for those who choose
to acquire land under the terms of this MoU, access to at least equivalent water sources, fodder sources etc.
will also be provided and the Project will support the clearance and preparation of the land for planting.
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Section Eligible Group Type of
Loss
Nigerian
Government
Compensation
Provision
Azura Power West Africa Ltd Replacement and Rehabilitation Assistance
Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided.
Disturbance allowance: A cash amount will be provided in light of the disturbance caused.
Note: If the affected person that has lost agricultural land has also lost a non-habitable physical asset /
partially-built structure on their agricultural land, they will not receive an additional disturbance allowance
for this loss of non-habitable physical asset / partially-built structure.
Livelihood restoration and development programmes: The Project will provide an intensive agricultural
development programme to those that seek to re-establish agricultural activities in the local area. This may
include:
(i) the provision of access to credit for farming inputs such as seeds etc; and
(ii) the provision of training (perhaps through the employment of an Agricultural Extension Officer) to
enhance farming skills and to encourage the use of more productive farming methods. In addition,
alternative vocational skills training will be provided. A specific needs Assessment will be carried out
to ensure that relevant and useful livelihood restoration and development programmes are established.
The livelihood restoration and development programmes established will be open to the broader
community as well as the displaced community.
C Crop / tree
cultivator (i.e. either
a sharecropper or a
farmer who
cultivates crops on
agricultural land
over which he
holds a customary
right of occupancy)
Standing
crops /
trees
The cash value of
the standing crops
/ trees will be
provided, as per the
EDSG assessment
and valuation
process.
AND Top up to achieve full replacement cost: The principle of full replacement (without considering
depreciation) will underlie the provisions for loss of standing crops / trees. The Project will supplement,
where necessary, the Government-provided compensation amount with an additional provision to ensure
that the total amount of cash received is equivalent to the full replacement value of the affected standing
crops / trees. Crop / tree cultivators will be allowed to clear any standing crops prior to land clearance by
the Project.
Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided.
Disturbance allowance: A cash amount will be provided to cover disturbance caused. Note: If the affected
person that has lost crops has also lost agricultural land, they will not receive an additional disturbance
allowance for the loss of crops.
D Business owner: Business The cash value of AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation
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Section Eligible Group Type of
Loss
Nigerian
Government
Compensation
Provision
Azura Power West Africa Ltd Replacement and Rehabilitation Assistance
customary right of
land occupancy
structure
(eg small-
scale
chemist
shop etc).
the business
structure will be
provided, as per the
EDSG assessment
and valuation
process.
into account) will underlie the provisions for loss of business structures. The Project will supplement,
where necessary, the Government-provided compensation amount with an additional provision to ensure
that the total amount of cash received by the affected business owner is equivalent to the full replacement
value of the affected business structure. In addition, the Project will provide affected business owners with:
(i) advice and support with financial planning, to enable them to employ their cash compensation to
construct a good quality new business structure;
(ii) an additional financial bonus to affected business owners, if they elect to invest their cash
compensation in the construction of a new business structure and retain their employees; and
(iii) the foundations of business structures at the resettlement site, to enable those affected business owners
to construct their business structures with ease and with less use of their compensation money.
Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided.
Disturbance allowance: A cash amount will be provided in light of the disturbance caused.
Livelihood restoration and development programmes: An intensive business skill development,
entrepreneurship and training programme will be provided. In addition, guidance will be provided on
how to set up small businesses, and access to microfinance schemes will be facilitated, for both men and
women. A specific needs assessment will be carried out to ensure that relevant and useful livelihood
restoration and development programmes are established. The livelihood restoration and development
programmes established will be open to the broader community as well as the displaced community.
E Owners of other
(non-habitable)
physical assets:
non-occupier of
land
Immovable
(non-
habitable)
asset/s (e.g.
fences,
walls,
partially
constructed
buildings)
The cash value of
the physical asset/s
will be provided, as
per the EDSG
assessment and
valuation process.
AND Top up to achieve full replacement cost: The principle of full replacement (without taking depreciation
into account) will underlie the provisions for loss of (non-habitable) physical assets owned by non-occupiers
of the land. A top-up cash amount will be provided that covers:
(i) the difference, if any, between the Government-provided compensation provision and the full
replacement value of these asset/s; and
(ii) the full replacement value of the land on which these assets are located.
Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided.
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Section Eligible Group Type of
Loss
Nigerian
Government
Compensation
Provision
Azura Power West Africa Ltd Replacement and Rehabilitation Assistance
F Hired employee Wages Nothing will be
provided to
compensate for lost
wages.
AND Relocation assistance or allowance: Physical assistance with the relocation process or a cash amount to
cover the cost of the relocation process will be provided.
Disturbance allowance: A cash amount will be provided in light of the disturbance caused and the possible
need for the employee to change his / her location. Payment of the disturbance allowance will be tied to the
employee attending a Skills Acquisition Training programme accredited by the Project. Payment of the
disturbance allowance will also be restricted to the small number of hired employees who currently work
for businesses that were physically located on the Project site prior to the cut-off date. The owners of these
businesses will be asked to provide detailed job records of all their employees and payment of the
disturbance allowance will be restricted to those individuals whose job tenure is documented and
evidenced sufficiently.
Employment assistance: Assistance in the identification of similar jobs in alternative locations will be
provided on a case-by-case basis, if relevant.
G Community
members
dependent on
communally held
resources / assets
Communal
resources /
assets
The cash value of
the communal
resource / asset
will be provided to
the Enogie or to a
community fund, as
per the EDSG
assessment and
valuation process.
AND Full replacement: The principle of full replacement (without taking depreciation into account) will underlie
the provisions for loss of communal assets.
Replacement communal assets will be provided have a combination of productive potential, practical,
locational etc advantages and other factors at least equivalent to the assets being lost. The replacement
communal assets that will be provided are the following:
internal roads within the resettlement site;
one community health centre;
access to electricity connections from the houses and business structures at the resettlement site, subject
to affected people capacity to pay for their own electricity consumption; and
drinking water facilities at the resettlement site.
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3.5 VALUATION METHOD
The valuation of assets for Ihovbor Community was carried out by Adamu
Kasimu and Associates who also carried out the valuation of assets for Orior
and Idunmwowina. The same valuation method was used for all three
communities and is described in the original 2012 RAP. For ease of reference,
the relevant section of the 2012 RAP is included in this report as Annex A.
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4 RESETTLEMENT SITES
Whilst not part of our formal scope of work, ERM became aware, while
conducting the social census in Ihovbor-Evboeka, that the positioning of the
two resettlement sites has been slightly adapted to respond to matters of
suitability of purpose and availability of the required sites. ERM took some
field observations of the proposed sites while in-country, which Azura may
find useful.
The two re-positioned sites are outlined on the site plan below with red
squares. Site 1 is located to the north of Orior near the Enogie of Orior’s house
and Site 2 is located south-west of the NIPP project site.
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Figure 4.1 Map of Proposed Resettlement Sites
The two sites are shown in the following figures.
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Figure 4.2 Site 1 – North of Orior
Site 1 (located to the left of the track seen on the photo above), is situated close
to the Enogie’s house and has direct access to the Orior road network. Access
to the site is through an adjacent palm plantation also belonging to the Enogie
(shown in the photos below).
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Figure 4.3 Access to site through palm plantation
Site 2 is situated on the south-west of NIPP Project and has some agricultural
developments situated immediately to its west and south. It is accessed by a
footpath (approximately 400m to the south) which connects to the Orior road
network.
The site is situated on the left side of the pathway visible on the photos below.
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Figure 4.4 Site 2 – South East of NIPP Project
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The following information summarises some basic points of interest regarding the two sites. Land ownership – Land on both sites is owned by the Enogie of Orior. The
land tenure system is one of informal ownership.
Site selection – It was reported that the sites were identified by the Orior
Land Allocation Committee with the input of the Enogie. The reason for the
sites being selected was that they are currently ’unused‘, and suitable for
agricultural and residential settlement.
Community Perceptions – It was reported that the two sites have not been
presented to the community for comment. The Land Allocation Committee
holds the opinion that the 2nd site is preferable because it is situated further
away from the home of the Enogie of Orior.
Land Use – Both sites are covered with dense vegetation and have apparently
not been used for any specific purpose recently. Also, until such time as
resettlement matters have been concluded, the Enogie agreed to not allocate
the land to anyone else.
Services and Infrastructure – There are no services or infrastructure present
on the proposed resettlement sites.
Resources – It was reported that the two sites are not used for purposes of
natural resource harvesting such as hunting, collection of firewood or other
natural resources.
Status of previous resettlement site alternatives – The resettlement site
located on the northern side of the highway as was proposed initially during
2011, will apparently not be considered as a suitable resettlement site any
longer. It was reported that this was because it was too far from the
settlements to be used as agricultural land.
Annex A
Valuation Method
7.1 VALUATION METHOD
Meetings, to which all affected stakeholders were invited, were held in the two affected communities before the asset valuation process began. During these meetings, issues concerning the methods of assessment, the duration of assessment, the classes of assets to be enumerated and the asset valuation approach to be used were discussed and agreed upon. In addition, the two communities appointed community representatives to oversee the field-based valuation process. Then, during the field-based valuation process itself, the valuation experts had one-on-one discussions with each claimant, to clearly explain the valuation process to them and ensure their comprehension of it. The field-based valuation process followed, which took place from 26 September 2011 to 14 October 2011, is summarised in the following bullets:
With regards to trees, head counts were conducted for each class of tree type.
With regards to crops and land plot sizes, tape measurements were used to determine the area to be valued.
With regards to buildings and other ancillary facilities, tape measurements were taken, construction details were recorded, and state of repair and level of completion was also recorded.
Still camera pictures of both the claimant and the assets were taken.
The GPS coordinates of each asset were taken.
All of this data was recorded in individual Assessment / Field Inspection Sheets.
Each Sheet was then individually endorsed by the relevant claimant, the assessment officer and the representative of Azura Power West Africa Ltd. This endorsement was, in each case, witnessed by the Chief Representatives.
7.2 Calculating EDSG Compensation Amounts
As previously mentioned, the EDSG compensation amounts have relied upon, for crops and trees, the “Harmonised Compensation Rates for Economic Trees and Crops in the South-South Geo-Political Zone”, effective as of December 2006. EDSG compensation amounts for all other improvements were established using the rates determined by the EDSG Department of Lands and Survey (see Table 7.2).
Table 7.2 EDSG Compensation Rates for Improvements (Excluding Crops and Trees)
S.No Description Amount (Naira)
/m2 /m /item
1 Bungalows: sandcrete blocks, corrugated iron sheets roof, cement screeded floor.
35,000
2 Bungalows: mud / earth blocks, thatch roof, cement screeded floor.
22,500
3 Perimeter fence: sandcrete blocks. 6000
4 Wells: manually dug, concrete casting. 85,000
5 Wells: manually dug, no concrete casting. 35,000
6 Boreholes complete with ancillary plumbing and mechanical / electrical fittings.
180,000
EDSG are required (by law) to consider depreciation when calculating the compensation for improvements. For each asset, the rate of depreciation was
based upon the professional judgment of the valuation experts on-site and took into consideration the level of completion, the level of dilapidation etc. of each asset. This calculation has then been offset by additional compensation provided by Azura to align with international standards.
4.1 CALCULATING INTERNATIONAL STANDARDS COMPENSATION AMOUNTS
Having ascertained the EDSG compensation amounts, the valuation experts then made the necessary adjustments to ensure that the final valuation adhered to the requirements of OP 4.12 and PS 5. The key basis for this valuation is full replacement. Full replacement is defined by PS 5 as “the market value of the assets plus transaction costs. In applying this method of valuation, depreciation of assets should not be taken into account. Market value is defined as the value required allowing affected communities and persons to replace lost assets with assets of similar value”. The current market value of affected improvements (excluding crops and trees) are the same as the rates provided by the estate valuators in the Ministry of Works (see Table 7.2). This is because these rates have recently been adjusted to reflect current reproduction and inflation costs. The rates were adjusted in 2011, during the assessment of the right of way for the dualisation of the Benin International Airport Road. The current market value of affected land was ascertained with reference to precedent land sales (over the last 12 months) in areas of comparable distance to Benin City and of comparable productivity to the affected land. Approximately NGN35,000.00 per square meter was offered by Azura as the market rate paid in compensation for land. Transaction costs were then added to the current market value of affected improvements (excluding crops and trees) and to the current market value of affected land. The transaction costs for affected improvements (excluding crops and trees) and for affected land were calculated at 17 percent (1) of the current market value of these affected assets, reflecting the fact that: (i) estate / search fees tend to be approximately five percent of current
market value; (ii) survey and beaconing fees tend to be approximately seven percent of
current market value; and (iii) lawyers fees tend, according to the Nigerian Bar Association, to be
approximately five percent of current market value.
To ascertain the current market value of the affected crops and trees, the “direct market comparison” approach was used. This method involves the determination of the opportunity cost of the rights of the claimants to the incomes from their individual farms and plantations throughout the resettlement period. To arrive at the rates for each of the identified crops / trees the following process was followed:
Determine the total yield of product per tree / crop type.
Establish the market price of the product.
Factor in outgoings such as labour, transport and marketing costs at 35 percent to arrive at net loss in annual income.
Establish the gestation period for replanting and reproduction per tree /crop type.
Adopt a premium market rate of return for agricultural investments; namely seven percent.
Calculate the amount of one naira, compounded at seven percent per annum for the gestation period of each tree /crop type, and multiply this by the net income (loss).
Establish the market costs of seedlings and add this to the total loss.
Multiply the resulting total by the number of crops / trees assessed for each claimant.
The valuation experts also categorised each crop / tree into mature, immature and seedling. Mature were those that were about to or had started bearing fruits, while immature were those that had not started bearing fruits but were older than seedlings. These categories were then subject to consideration as follows:
Matured tree: 100 percent of the market value.
Immature tree: 50 percent of the market value.
Seedling: 25 percent of the market value.
Supplementing the above values, the following figures were used as the basis for the provision of additional allowances to each relevant eligible group.
Relocation Allowance: Discussions with the affected communities revealed that packing up their belongings and travelling from the Plot to the furthest point in Edo state would cost approximately 5,000 naira. Accordingly, this amount will be allocated to each claimant, or alternatively, the Project itself will provide appropriate physical assistance to enable affected people to move.
Disturbance Allowance: For each eligible claimant, this amount will equate to approximately six months wages.
Incentives to Encourage House / Business Structure Re-Building: It is anticipated that these incentives will equate to approximately 25 percent of the full replacement cost of the affected houses / business structures.