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7.4 Carrying Out the Valuation of Affected AssetsEnvironmental and Social Management FrameworkAll assets that will be affected, as identified by the survey teams, will be properlyrecorded and verified in the presence of the concerned persons. The detailedsurvey asset information will be computerized to monitor the reestablishment ofPAPs. The valuation of affected assets will be undertaken by the District-levelCompensation Fixation Committees (CFCs). It is also recommendable to georeferencethe said assets (land, structures) with the help of a Global PositioningSystem (GPS) to facilitate monitoring and to be used in case of later claims.Each asset will be enumerated and inscribed on a register. Values for eachtypes of asset will be pre-printed, shown to the affected person, and set againstthe type and number of such losses that the individual will sustain. The totalcompensation for that category of loss will be explained to the AP, and the total ofall losses shown as well. The valuators must ensure that the AP will fullyunderstand the compensation calculation, and that the entire process isexplained in local dialect, as applicable. The inventory and evaluation sheet willthen be signed and a copy given on the spot to the affected person. The form willalso state, and the affected person will be notified, that the inventory will not beofficial until a second signed copy, verified by project supervisory staff, isreturned to the affected person. At that time, a copy of the grievance proceduredescribed below (explaining the rights of the AP to forward claims) will also begiven to the affected person.When valuing affected assets, the CFCs will take account of rates in the openlocal market and information gathered during RAP preparation to ensure thatcompensation is at replacement value. Compensation rate for all types of losseswill be prepared. The established price list for land and other assets will be usedfor compensation of property acquisition. During the course of projectimplementation, the rate will be continuously reviewed and updated on an annualbasis by the CFC. The respective data will be stored in an updated data bankadministered by the Social Division of the Geo-Environment and Social Unit ofDoR.The methods of valuation for verifying the replacement for each type of losses,which will be carried out by the CFC and resettlement committee, are, but notlimited to, the following:Land:• Recent land use rights transfer on land• Determine whether the established rates are sufficient or not to purchase thesame quality and quantity of land.Structures:• Evaluate whether the compensation for the structures will enable APs torebuild their affected structures by consulting landowners, based in aninventory of(i) types of structures, size, stories, rooms, land area,materials used and the cost of various materials(ii) Who built the structures (AP or Contractor) and whetherhired labour will be used or not.• Obtain cost estimates by consulting at least three local/regional contractorsand suppliers in order to:(i) Identify local/typical cost of materials and labour,(ii) Identify cost of different types of houses according tocategories,(iii) Compare prices with those prevailing in the District.April 2007 Chapter 7-13
Environmental and Social Management FrameworkCrops and Production Trees:Information will be collected to establish the average market price for these items.Current market prices will be determined in the same and adjoining districts fordifferent types of crops and plants in consultation with District Agriculture Officeand the District Forestry Office.The final valuation shall be based on the principle that the project-affectedfamilies shall be compensated in a way to guarantee that their living standard isat least the same as before, if not better. Accordingly, the assessment ofcompensation for affected assets will be based on the principle of current marketprice at replacement value. The prices per square meter for different category ofstructures will be based on the total affected area of a structure, and not theusable area. As matter of principle, all compensation should be equivalent orhigher than the prevailing market price.7.5 Public Participation, Consultation and Grievance MechanismPublic participation and consultation are the basic the principles in arranging forproper resettlement and compensation mechanisms in all forthcoming subprojects.Public consultation includes comprehensive and timely dissemination tothe project-affected people, while involving at the same time all agencies who willimplement and monitor the process. Care will be taken to maintain transparencyof the Project, reduce potential conflicts, minimize the risk of project delays, andenable the Project to design the resettlement and the rehabilitation program as acomprehensive development program to suit the needs and priorities of the APs.7.5.1 Mechanisms of Consultation and Participation of PAPsThis framework recommends a set of public consultation activities andinformation dissemination to affected people. Public consultation will include bothlocal governments and civil society where the APs would be regularly providedwith information on the project and the resettlement process prior to and duringthe preparation for resettlement actions. Mechanisms of consultation andparticipation will include:(1) Public meetings in the project area(2) Information/ awareness campaigns through engaged NGOs(3) Interviews/surveys in project affected households(4) Focus group discussions,(5) Formation of committees and/or groups including stakeholdersat various stages of the project.(6) Development of grievance redresses mechanism in the Projectpremises.At early stage of initiating the resettlement process a Local Consultative Forum(LCF) will be formed at VDC level to ensure PAP’s participation in the decisionmaking process of the RAP implementation. The LCF will play a key role in allpublic consultation activities.During the process of preparing RAP, discussions will be held with the directlyaffected families, institutions and the representatives of the directly affectedVDCs. PAP as well as other stakeholders will be requested to participate inmeetings of the RAP processes and express their concerns about variousaspects of the project.The information dissemination will be effected through electronic and print media,during public consultation/LCF’s meetings, and direct discussion with the affectedfamilies and institutions.Chapter 7-14 April 2007
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