Resettlement Plan Document Stage: Updated Project Number: 34304 June 2014

NEP: Kathmandu Valley Water Supply Improvement

Project–Distribution Network Improvement for

Efficient NRW Management (Package II)

Prepared by Project Implementation Directorate, Kathmandu Upatyaka Khanepani Limited (KUKL) for the Asian Development Bank. This is an updated version of the draft originally posted in January 2014 available on http://www.adb.org/projects/34304-043/documents.

Kathamandu Valley Water Supply Improvement Project(ADB Loan No. 2776 NEP-SF)

Updated Resettlement Plan ofDistribution Network Improvement for Efficient NRW Management -

Package II(DNI 3, DNI 4, DNI 5 and DNI 7 Areas)

Project Implementation DirectorateKathmandu Upatyaka Khanepani Limited (KUKL)

Anamnagar, Kathmandu

June, 2014

CURRENCY EQUIVALENTS(As of 18 May 2014)

Currency unit – Nepalese rupee (NRs/NRe)NRs1.00 = $ 0.0106

$1.00 = NRs 94.00

ABBREVIATIONS5ADB — Asian Development BankBDS — Bulk Distribution SystemCDC — Compensation Determination CommitteeCDO — Chief District OfficerCIRT — Community Issues Resolution TeamDAO — District Administration OfficeDDC — District Development CouncilDNI — Distribution Network ImprovementDSC — Design and supervising consultantEMP — Environmental Management PlanFGDGESI

——

Focus Group DiscussionsGender Equity and Social Inclusion

GRM — Grievance Redress MechanismKUKL — Kathmandu Upatyaka Khanepani LimitedKVWSMB — Kathmandu Valley Water Supply Management

Boardlpcd — liters per capita per dayMOUD — Ministry of Urban DevelopmentMWSP — Melamchi Water Supply ProjectMWSDB — Melamchi Water Supply Development BoardNGO — Non Governmental OrganizationPID — Project Implementation DirectoratePPTA — Project Preparatory Technical AssistanceRoW — Right of WaySPS — Safeguard Policy StatementVDC — Village Development Council

WEIGHTS AND MEASURES

ha. – Hectarekm – Kilometerm – Meterm2 – square meterm3 – cubic metermm – MilliliterMTD – metric tons per daykm2 – square kilometer

TABLE OF CONTENTS

I. PROJECT DESCRIPTION 1

A. Background 1B. Package II 1

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 3

III. SOCIOECONOMIC INFORMATION AND PROFILE 6

A. Socioeconomic Profile of Affected People 6B. Gender Considerations 7

IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 8

A. Public Consultation 8B. Information Disclosure 10C. Continued Consultation and Participation 10

VII. ENTITLEMENTS, ASSISTANCE, AND BENEFITS 11

A. Eligibility 11B. Entitlements 11

VIII. RESETTLEMENT BUDGET AND FINANCING PLAN 14

IX. IMPLEMENTATION SCHEDULE 15

APPENDIXES

1. Name List of Potential Partially Affected Business2. RAP Implementation Schedule3. Attendance Sheet of puublic consultations4. Photographs of public consultaion

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I. PROJECT DESCRIPTIONA. Background1. The proposed Kathmandu Valley Water Supply Improvement Project1 will support theongoing efforts of the Government of Nepal towards improving the water supply services inKathmandu Valley. The project will invest in bulk water transmission and distribution networkimprovement systems, and will complement the past and ongoing Asian Development Bank(ADB) projects.2 The resultant synergy is expected to lead to increased efficiencies, greaterimprovement in service delivery, and higher impact on health outcomes and quality of life forinhabitants of Kathmandu Valley.

2. Kathmandu Valley is characterized by high urban population growth (5.3% perannum) and a high population density of 2,800 persons per km.3 The total population ofKathmandu Valley in 2011 stands at 2.5 million. Rapid and largely unplanned urban growth,high population density, lack of sustainable water sources, and inadequate past investmentsin water supply infrastructure have resulted in abysmally poor availability and quality ofdrinking water.4 Moreover, poor access to sanitation facilities, improper solid wastemanagement systems, and groundwater and surface water pollution from untreateddomestic sewage have caused increased disease incidence, health risks, and associatedeconomic burdens disproportionately impacting the poor and vulnerable.5

B. Package IIThe package II is divided into four DNI areas. Among the DNI service areas DNI 5 is locatedin Lalitpur metropolitian city where as DNI – 3, DNI – 4, DNI – 7 are located in Kathmandumetro city which covers the main city area of Kathmandu metropolitian city. Chakupat,Gwarko, Patan Durbar Squar and Pulchowk are the major market city of DNI - 5 whereSinghdarbar, Anamnagar, Thapathali, Naya Baneshwor, Bijulibazar, Hanumandhoka,Chhetrapati, Thamel and Nayabazar are the major market centers of DNI 3, 4, and 7 ofpackage II service area

Location map of Package II is shown below.

1The project was prepared through PPTA 4893-NEP: Preparing the Kathmandu Valley Water Distribution,Sewerage, and Urban Development Project, approved on 13 December 2006. Due to restructuring of ongoingloans, the work of PPTA started in 2009 and final report was submitted in May 2010.

2Loan 1820-NEP (SF): Melamchi Water Supply Project was approved on 21 December 2000 and becameeffective on 28 November 2001. Loans 2058/2059-NEP (SF): Kathmandu Valley Water Services SectorDevelopment Program were approved on 18 December 2003 and became effective on 7 December 2004.

3Central Bureau of Statistics, Government of Nepal, 2011.

4A baseline survey done by CRISIL under PPTA 4893-NEP in September 2010 estimates water availability at20 liters per capita per day (lpcd) and average duration of water supply at 0.4 hours per day. KathmanduUpatyaka Khaneani Limited (KUKL), the operator, assesses the current availability as 45 lpcd.

5Vulnerable groups include female-headed households and below poverty line households (According to theNLSS Survey 2011, an individual is considered poor if his/her per capita total annual consumptions is belowRs. 19,261.)

2

Figure 1 Location Map

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II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT3. There is no land acquisition under the proposed project. All land for servicereservoirs were previously acquired under the ongoing ADB Loan 1820. The impacts arelimited to the following: (i) few temporary disruptions of business activities and income, andin Distribution Network Improvement (DNI).6 Based on detail design a census survey wasconducted to indetify disruption of business. Altogether 174 business shops (10 DNI – 3, 21in DNI – 4, 38 in DNI – 5 and 105 in DNI – 7) may experience temporary/ short termdisruption on narrow streets in package II. The partial disruption/short disruption is noteligible to receive compensation. Among the identified business that experience full closureduring the pipe lying period will be eligible to receive compensation. Streets experiencedpartial disruption willl be approximately 1-4 day. The impacts were identified in those narrowstreets which are less than 4 meter wide. Trench sections for DNI will be 100-200 m inlength. Contractors are required to maintain access to shops to avoid and limit thedisturbance to the extent possible, and mitigation measures are incorporated into theircontracts and monitored by the construction supervision consultants. Temporary economicimpacts to businesses along the DNI routes are expected to be short term, and avoidedand/or mitigated through good traffic management planning and implementation, nightworks, and maintaining access to shops during the construction period, as outlined in theEnvironmental Management Plan (EMP).7 In the event roads are fully closed, with access toshops disrupted, compensation for lost income will be made for the time of disruption.8

4. The contractors will be required to maintain access to shops during trenching (metalplanks, spaces, etc), which is expected for 5-6 days for larger sized pipes (800-1,500 mm).For DNI works, trench stretches range from 50 m to 100 m, with 1-4 days required forbackfilling. DNI works will use primarily the hand digging method. Roads within the DNIareas are narrower (1-2 lane roads, with 5-7 m carriageways); however, the pipes aresmaller in diameter, resulting in fewer disturbances to residents and businesses. It isidentified and surveyed that 174 business shops of package II area will experience partialdisruption due to road closure on narrower streets. Streets requiring partial closure will beimpacted for 1-4 days. In the case of only full closure the affected business are entitile toreceive compensation. The above mentioned business are identified those experiencepartial disruption not full closure during the construction times. Prior to construction,contractors and DSC, with the assistance of the community participation consultants, will berequired to provide at least 1-2 weeks advance notice, along with an awareness campaigninvolving local area committees (Tole committees).

6In some areas along the ring road, works are proposed outside the carriageway or shoulder, while still withinthe RoW. In these areas, there may be impacts to vendors.

7To ensure disturbance is minimized to the extent possible, contractors will be required to expedite works infront of businesses, provide pedestrian planks across trenches manage traffic flows, conduct works at night,etc.

8The full closure of roads is expected to be minimal under the project, and based on the field visit and detaildesign of DNI zones, it is estimated that around 174 shops could experience partial closure of roads underPackages II. Full closure is not expected in BDS and DNI areas, but more limited to DNI zones, where nightworks will also be considered to limit impacts. If closed, full closure is not expected to exceed 3-5 days.

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Table 1: Proposed Package II Works and Potential ImpactsDNI Area Size and length Estimated

period ofaccess

disruption tobusinesses

Road widths Level ofdisturbance

(low, medium,high)

All pipes 150 mm diameter or above will be DI; distribution pipes for Kathmandu MetroZone will range from 75 to 110 mm in diameter, and 150 to 350 mm HDPE of about 487,586

m2. Pipes 400-1000 mm in diameter acting as trunk mains, and distribution mains will be of DI,of about 162,913 m.

DNI Package II(DNI 3,4,5,7)

Tertiary main HDPE pipe 189,443m

Secondary main DI pipe = 50,128m

Primary main DI pipe = 10,514 m

Total length Package 2 = 250,085 m

1-5 days 3-10 m Low

dia = diameter, DNI = Distribution Network Improvement, km = kilometer, m = meter, mm = millimeter.

5. The following mitigation measures are proposed in the EMP to avoid and/or reducethe impacts to businesses during linear pipe works:

(i) Provide at least 1-2 weeks prior advance notice to the community along thestretch and conduct awareness campaigns in coordination with contractor,DSC, and community participation consultant. Distribute project information.

(ii) Maintain access to avoid disturbance to residents and businesses byproviding planks and leaving spaces for businesses and residents to maintainaccess.

(iii) Manage traffic flows as per traffic management plan prepared by thecontractor in coordination with local authorities and communities, and conductworks at night where possible.

(iv) Limit amount of time when trenches are open, and complete works quicklywhere lots of businesses are located.

(v) Avoid full street closure to extent possible.(vi) Provide employment opportunity to the affected people.

Place Kathmandu Upatyaka Khanepani Limited (KUKL) phone hotline invisible areas. Make community fully aware of grievance mechanism andprovide contact information of Project Implementation Directorate (PID) andKUKL branch offices.

(vii) Contractors will assist vendors and hawkers in shifting to alternative location.

6. Business survey. In order to estimate the scale of impacts during construction andto come up with a budget for compensation, a census survey of businesses was conductedfrom January to February 2014 to determine the daily income of different types ofbusinesses located in package II. Based in detail desing, a total of 174 business wereidentified that will experience partial disruption during the pipe laying period. The impactswere identified in those roads which are leass than 4 meter wide.

7. Table 2 summarizes the occupants within selected proposed alignments of the underpackage II. Based on the detail design it is identified that 174 business along the

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roads/streets/galies will experience partial disruption. If the business will experience fullclosure that will be compensated financially. But the resettlement survey indicated that noneof business will fully closed due to construction activity. Among the affected business most ofthem are related every day life. Gorcery, Small hotels/restaurants, Tailoring, garments, andmaintnence workshops are major. The table 2 presents the affected business and itsnumbers. About 75% of the affected business shops are rented or shop owners are rentedand remaining 25% are owner of the business house.

8. Daily income estimates for permanent shops. Based on the survey of 174business shops will experience partial disruption under Package II and, the average dailyincome of shops surveyed after deducting rent is NRs 632 per day per business house (orapproximately $ 6.65/day/business).9

Table 2: Types and Number of Affected Business Under Package II

S.N. Nautre of Affected Business Number of Affected Business Remarks

1 Cloth Shop 452 Grocery 433 Fancy Shop 174 Small hotels/restaurants 145 Tailoring 106 Ornaments 107 Garment 88 Hardware 39 Cosmetic 310 Metal workshop 311 Bangles shop 212 General store 213 Beauty parlor 214 Art shop 215 Workshop 216 Stationary 217 Barber 118 Handy craft 119 Meat shop 120 Pan pasal 121 Vegetable 122 Utensils 1

Total 174

9The exchange rate used is $1.00 = NRs 95.00

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III. SOCIOECONOMIC INFORMATION AND PROFILEA. Socioeconomic Profile of Affected People9. Description of Package II Area. The package II service area is lies in KathmanduMetropolitian City and Lalitpur Sub Metropolitian City. The major market centers of packageII service areas are Chakupat, Gwarko, Patan Durbar Squar and Pulchowk are located inLalitpur Metropolitian City and Singhdarbar, Anamnagar, Babarmahal, Maitighar, Thapathali,Tilganga, Sinamangal, Bhimsenghola, Naya Baneshwor, Bijulibazar, Naya Sadak,Hanumandhoka, Chhetrapati, Thamel, Sorakhuttee and Nayabazar area are located inKathmandu Metropolitian city.

10. Demographic Composition. There are 308,873 households in Kathmandu andLalitpur city where the population of male and female population are 732,643 and 577,393and total population is 1,310,036 and average households’ size 4.24 (census, 2012. Thetotal population of service area is 164,629 in which male population is 98,591 and femalepopulation 66,038 and 51061 households (census, 2012). The average household’s size ofservice is 3.22 which is lower than national average 4.88. The total population of affectedpeople is 450 in which the male population is 49.15% where female population is 50.84%and the average households size is 3.81

11. Social classification. Newar is the prominent inhabitants of Kathmandu valley. Theaffected people are divided into different caste groups.The survey of affected people showsthat 74.55% are Newar, 6.38% are Brahmins, 5.45 % are Tamang, 4.55% are Chhetri,3.64% Thakuri and 2.73% are Magar and Limbu. The percentage of Hindu followers is 91%and others are about 9%. In the Kathmandu Valley, Newar are considered an advancedindigenous people group. This group comprises about 41% of the valley population.

12. Age. The economically active age group between 15 and 59 years constitutes about76.25% of the affected population. The other main age group 5 to 14 years is about 23% and60 years overs groups constitute about 4.75% of the affected population. There are nosignificant differences in the percentage of age distribution in package II area.

13. Health. The avalibality of health services in package II area is satisficatory. Thegovernment and private sector are operating health services in this service area. Altogether14 government health centers, 20 private sector hospitals (825 beds) and 140 private clinicsare operating in the area. In the service area 99% have toilet facility where as 1% have opendefection practices. The gastric, asthama, feaver and jaundice are common disease foundamong the affected people in service area.

14. Education. The Kathmandu Valley has long been considered the center for highereducation in Nepal. The literacy rate of Lalitpur district is 83.75% and Kathmandu district is95.2 respectively where as the literacy rate of affected people is 93.25%. The numbers ofeducational institutions in Kathmandu Valley are 826 school level and 186 college anduniversity level education institutions where as in package II service area 71 schools and 42colleges are in operation. (District Profile 2011).

15. Employment. The economy of the Kathmandu Valley is based on trade, commerce,and manufacturing industries like carpets and garments. Other economic sectors areagriculture, education, transport, hotels, and restaurants. Tourism is also a key componentof the valley’s economy. However, in the rural areas, the economy is still based onagriculture.

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16. However, the National Living Standard Survey 2010-2011 indicates that about 55.7%of the economically active population of 10 years of age and above in urban KathmanduValley is employed in the agriculture and non-agriculture sector, of which only 17% dependson farm activities. It means that about 83% of this group of population depends on non-farmactivities such as manufacturing (24.0%), trade (42.6%), service sectors (28.6%), and otherworks (4.8%).

17. Economically active population. About 68.72‘% of the total population in the valleyaged 16 and above are economically active (Census 2011). Majority of the population of theKathmandu Valley are engaged in agriculture and forestry (36%). The other major industriesare manufacturing (17%), commerce (16%), construction (4%), andtransportation/communication (3%). Among the affected population, at least one of theirfamily members is engaged in service or any other income generating sources exceptbusiness.

18. Poverty.

The National Living Standard Survey 2010/11 indicates that about 25.16 % of the populationof Nepal lives below the poverty line. According to the NLSS Survey 2011, an individual isconsidered poor if his/her per capita total annual consumptions is below Rs. 19,261. It hasalso categorized the food items and non food items and the expenses required to be abovethe poverty line. Accordingly, the income required for providing adequate calories (2, 220kilocalorie) for an average Nepali to be active is Rs 11,92910. For non-food items, for anaverage, the average income required is Rs. 7,332. Nepal Living Standard Surveyconducted by CBS in 1995/96, 2003/04 and 2010/11 revealed that between the threesurveys there had been substantial decrease in the poverty in Nepal. The survey shows thatpoverty had decreased faster in the urban areas from 1995/96 to 2003/04. However, theurban poverty has increased from 9.6 % to 15.5 % from 2003/04 to 2010/11, where as therewas substantial decrease of poverty in rural areas11. In the surveyed houdeholds none of thelies below the poverty line and their average household’s income is above the national level.

19. Slums and squatter settlements. The rapid population growth has created anumber of slums and squatter settlements in the Kathmandu Valley. But the numbers ofslums and squatters are comperatively low in package II service area. And based in detaildesign no slums and squtters and hawkers will be affected by the construction activity.

B. Gender Considerations20. The project will provide universal connections, including for poor and vulnerablehouseholds, including female-headed households. Employment will also be granted tofemales, with equal pay for men and women. In addition to the measures provided foraddressing the gender concerns of the affected households, the resettlement plan will beimplemented in consonance with the gender equity and social inclusion (GESI) plan for theproject.21. Women-headed households. According to the 2011 census, about 12% ofhouseholds have been reported as female-headed in Kathmandu valley. Among the affectednone of them were female headed households.

10For the food item only, this has been calculated as NRs.11,929 per person per year (National Planning

Commission of Nepal, Nepal Living Standard Survey 2010/2011).11

Key reasons for the reduction in poverty include (a) the significant inflow of remittances, (b) decline in fertilityrates, (c) increases in farm wages over the past decade and, importantly, (d) urbanization and the associatedincrease in high productivity economic activity compared with the lower productive activities of rural areas.

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IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATIONA. Public Consultation22. While updating the RP, an extensive consultation program with key stakeholdersincluding project affected people was carried out, in line with the requirements pertaining toenvironment and social considerations of ADB. The public, business owners, affected peopleand shopkeepers were informed about the possibility of disruption to the business The toolsused for consultations were stakeholder workshops and meetings, interviews, structuredquestionnaires, and focus group discussions (FGD). These consultations provided inputs foridentification of the felt needs of the communities, and the relevant stakeholders.

23. Consultatiions were held in during the time of updating RP in package II service areaand vendors, business owner were informed about the possibility of disruption to thebusiness. During the visits, potential temporarily impacted areas that could experiencepartial disruption of roads/galli were identified and census income survey of shops andvendors were conducted for assessing the average daily income. The table below shows thedate, location and detail of public consultations.

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Table no. 3 Public Consultation Matrix

Date No. ofParticipants

Location Participantsattended

Topic/issuesdiscussed

Information dissiminated

6 Feb 2014 Male:6Female:5

Thapathali Local vendors,TLO members,local people,

Entitlementmatrix, GRM, localemployment,Compensation forbusinessdisruption, qualityof works,

Construction time will beless traffic period, priority tolocal people in job,compensation will beprovided, GRM mechanishalso discussed

7 Feb. 2014 Male:8Female:3

Singadurbar TLO members,vendors, localpeople

Entitlementmatrix,compensationproviding authorityconstruction time

Discussed entitlementmatrix, KUKL authority forcompensation constructiontime will be in less trafficperiod and completerehabilitation workimmediately

9 Feb. 2014 Male:6Female:4

Baneshwor Vendors, TLOmembers, localpeople

Wagediscrimination,Compensationpackage,construction time

No discrimination in wagerate, construction time willbe in less traffic period andcomplete rehabilitation workimmediately

10 Feb.2014

Male:5Female:5

Bhimsengola Local pelple,vendors, TLOmembers,hawkers

Traffic diversion,businessdisruption, qualityof works

Appropriate diversion andcompensation package,quality maintained

15 Feb.2014

Male:5Female:4

Makhangalli Local vendors,TLO members,local people,

localemployment,Compensation forbusinessdisruption, qualityof works,

Construction time will beless traffic period, priority tolocal people in job,compensation will beprovided

17 Feb.2014

Male:7Female:6

Mangalbazar Vendors, TLOmembers, localpeople

Quality of Works,Entitlementsmatrix,construction time

Quality of works will bemaintained and dissiminateproject entitlements, lesstraffic time

19 Feb.2014

Male:12Female:5

Makhan galli Local pelple,vendors, TLOmembers,hawkers

Traffic diversion,businessdisruption, qualityof works

Appropriate diversion andcompensation package,quality maintained

20 Feb.2014

Male:13Female:5

RatnaChowk

TLO members,vendors, localpeople

Wagediscrimination,Compensationpackage,construction time

No discrimination in wagerate, construction time willbe in less traffic period andcomplete rehabilitation workimmediately

25 Jan.2014

Male:8Female:5

New Road TLO members,vendors, localpeople

Compensationproviding authorityconstruction time

Compensation by KUKL,construction time will be inless traffic period andcomplete rehabilitation workimmediately

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B. Information Disclosure24. To provide for more transparency in planning and for further active involvement ofaffected people and other stakeholders, project information was disseminated throughdisclosure of the translated versions of the resettlement planning documents. Theinformation was made available at public places, including the offices of PID, KUKL mainoffice and branch offices, contractor site office and Ward Office of Kathmandu Metropolitiancity. A copy of the resettlement plan will be disclosed on the ADB and project relatedwebsites, and is also available from PID upon request.

C. Continued Consultation and Participation25. The PID has extended and expanded the consultation and disclosure process duringthe detailed design stage and will be continued during construction period of the project.CAPC has been recruited to ensure ongoing consultations and public awareness duringproject implementation. This has been coordinate with the PID, design and supervisionconsultant (DSC), and contractors to ensure that communities are made fully aware ofproject activities in all stages of construction. A community awareness and participation planwas also prepared for the project and implementing by CAPC in coordination with the PIDand DSC safeguards expert. Community groups such as TLO and vendor associations havebeen consulting and made aware of the civil works and project activities prior to construction.

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VII. ENTITLEMENTS, ASSISTANCE, AND BENEFITSA. Eligibility26. Compensation eligibility is limited by a cut-off date as set for this project on the day ofthe beginning of the income survey prior to commencement of civil works. Once a contractorconfirms that a road is likely to be fully closed (no access to traffic) for more than 5 days, theDSC social safeguards specialist will conduct an income survey of businesses along therelevant sections.12 The DSC social safeguards specialist may recruit enumerators to assistin this activity. An income survey will serve as the cut-off date. The businesses thatexperience full closure due to project activities are only entitled to receive compensation.The business experience partial disruption and short closure are not entitled to receivecompensation. Among the identified business those who experience full closure during thepipe lying period will be entitled to compensation for their lost income based on the taxrecord or, in its absence, comparable rates from registered businesses of the same type withtax records. For shops not qualifying under these categories (hawkers, vendors, etc.), therewill be the option of using the actual income based on survey, followed by a verification ofthe income data based on comparable incomes in the project area.

27. Hawkers or business owners who settle in the affected areas after the cut-off datewill not be eligible for compensation. They will, however, be given sufficient advance notice(at least 1 week), and will be requested to vacate premises and dismantle affected structuresprior to project implementation. Contractors will provide shifting assistance to any vendorsneeding help.

B. Entitlements28. The entitlement matrix (Table 4) summarizes the main types of losses and thecorresponding entitlements in accordance with the ADB policies. In addition to temporaryimpacts, the entitlement matrix also covers damages to structures during construction.

12Compensation is only applicable to businesses experiencing disturbance on fully closed roads.

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Table 4: Entitlement MatrixType of Loss Entitlement Unit Description of Entitlement and Implementation

ProceduresRemarks Responsibility

1.Damages caused during construction

1.1 Government andprivate structures

• Titleholder• Tenant• Informal settlers ongovernment land

Where damages occur to private, community, orgovernment property as a result of constructionworks, the cost of restoring these to at least theiroriginal condition will be the responsibility of thecontractor as part of their contract.

Extreme care should be takenby the contractors to avoiddamaging any propertiesduring construction.Compensation for the losseswill be borne by thecontractor.

Contractor/PID/DSC/CAPC

2. Community facilities and resources

2.1 Loss ofcommunitystructures

Local community Restoration of affected community buildings andstructures to at least previous condition, orreplacement in areas identified in consultationwith affected communities and relevant authoritieswill be carried out.

Extreme care should be takenby the contractors to avoiddamaging any propertiesduring construction.Compensation for the losseswill be borne by thecontractor.Community structures includeservice roads, inner roads,temples, footpaths/trails,culverts, and water points.

Contractor/PID/DSC/CAPC

2.2 Loss of drinkingwater and sanitation

Residents and businesses There wll be immediate replacement andrestoration of the water points.

The time gap between theconstruction of new systemand transfer from the oldsystem should be minimized.Alternative sources of watershould be made availableduring the construction period.

Contractor/PID/DSC//CAPC

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Type of Loss Entitlement Unit Description of Entitlement and ImplementationProcedures

Remarks Responsibility

3. Temporary loss of income

3.1 Temporary lossof business

• Titleholder• Licensed and non-licensed vendors, and titledand non-titledhouseholds/tenants

Businesses are entitled to compensation for eachday of disturbance on fully closed roads. Anincome survey will serve as the cut-off date. Allbusinesses identified in the project-impactedareas (sections ready for construction) on the cut-off date will be entitled to compensation for theirlost income based on the tax record or, in itsabsence, comparable rates from registeredbusinesses of the same type with tax records. Forshops not qualifying under these categories(hawkers, vendors, etc.), there is the option ofusing the actual income based on survey followedby a verification of the income data based oncomparable incomes in the project area.Mobile hawkers and vendors will be assisted bycontractors in moving to alternative locationsduring the period of construction.

An income survey prior toconstruction will serve as thecut-off date.

DSC/PID//CAPC

3.2 Vulnerablepersons

Female-headed, and below

poverty line households ,the annual poverty line datais NRs. 19,261 percapita/year or NRs 93,994per household/year: NLSSSurvey, 2011

Vulnerable persons will be entitled to preferentialemployment (unskilled labor) under the project.

Vulnerable persons will beidentified during incomesurvey, with the list given toPID and contractor.

DSC/PID/CAPC /contractor

4. Structures

4.1 Temporary lossof structures in rightof way

Temporary or semi-permanent structures orstalls that belong to licensedand non-licensed vendors,and titled and non-titledhouseholds

Affected persons will:(i) receive advanced notice of at least 2 weeks;(ii) have rights to salvage materials from structure;(iii)receive asistance in shifting to nearby location;

and(iv) be allowed to return to original site after

completion of construction works.

There will be temporaryshifting for 5-7 days duringperiod of construction. DSCCAPC and contractor willidentify alternative site andhelp in shifting.

Contractor/ DSC/PID/CAPC

DSC = Design and Supervision Consultants, PID = Project Implementation Directorate.

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VIII. RESETTLEMENT BUDGET AND FINANCING PLAN29. The resettlement cost for the package II service area (Table 5) includes eligiblecompensation for temporary impacts on income. Among the identified those which businessexperience full closure during pipe lying period are entitled to receive compensation. Thecost estimate is based on the respondent’s response on their daily transaction reducing allexpencess. The government financing has provided funds to support all compensation forlost income. The total estimated resettlement cost for the package II is NRs 440,400($4,635.789). The Implementation Agency (KUKL) PID has allocated sufficient budget andhuman resources to implement the resettlement plan.

30. The cost items are outlined below:

(i) For linear works, temporary loss of income to shops and businesses due todisturbance caused by construction for roads fully closed. Businesses areentitled to income compensation on fully closed roads where customeraccess is inhibited.

(ii) Vulnerable persons entitled to preferential treatment in project-relatedemployment.13

31. During the time of updating RP, consultaion, observation and rapid interactions wereconducted in the package II service areas. Likewise, as per the detail design of package IIarea, all of the alignments of the pipilines were visited. Based on the visits and interactions, itis identified that (for budget purposes) 174 shops could experience partial impact in packageII service area. It is assumed that, most streets experience short impact will not more than 4days. The total resettlement budget for package II is NRs 440,400($4,635.789). Table 5provides details of the costs.

Table 5: Summary of Compensation Costs

Item

Estimatednumber of

days ofcompensation

14

DailyIncome(NRs)

15

Identifiednumber ofshops in

Package IIIservice area

16NRs USD

Assistance for incomeloss

4 632/day 174 440,400 4,635.789

TOTAL 174 440,400 4,635.799

DNI = Distribution Network Improvement, USD = United States Dollars.

13A list of names of vulnerable persons will be submitted by the DSC to PID and contractors.

14Businesses are entitled to income compensation for each day of disturbance on fully closed roads. Forbudgeting purposes, it is estimated that streets will be closed for 4 days. None of the affected households werefound vulnerable in 174 shops. For budgeting purposes, vulnerable persons’ losses are not included. Duringimplementation, income compensation is based on actual losses based on tax record or, in its absence,comparable rates from registered businesses of the same type with tax records. For shops not qualifying underthese categories (hawkers, vendors, etc.), there is the option of using the actual income based on surveyfollowed by a verification of the income data based on comparable incomes in the project area.

15Estimated daily income is based on the census business survey conducted in the DNI areas in January toFebruary 2014. Compensation is based on actual income loss. The figures presented in Table 5 are for budgetestimation purposes only and are purposefully conservative.

16The DNI covers an area of about 3,139 ha, it is estimated that about 174 shops will be partially affected due toproject activities. Therefore, a total of 174 shops would be potentially impacted by the project, a conservativeestimate for budgeting purposes.

15

IX. IMPLEMENTATION SCHEDULE32. The proposed commencement date for civil work of package II is divided based on

DNI. The first construction of DNI 3 is scheduled in third week of May 2014 and the DNI3, 5 and 7 after completion of DNI 3. The implementation of RP will be before starting thecivil work. The implementation schedule of RP is shown in Annex 2.

APPENDIX 1: NAME LIST OF POTENTIAL PARTIALLY AFFECTED BUSINESS

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location1 Rita Thatal Beauty Parlour Shantinagar,Kharibot2 Suraj Kumar Shrestha 9841325544 Books/Stationary Shantinagar,Kharibot3 Shree Siddhi Shrestha 9841316163 Tailoring Devkota marg,Nayabaneshwar4 Subash Bashistha Arts Jagat marg,Nayabaneshwar5 Rose Lama Workshop Jagat marg,Nayabaneshwar6 Bishwa Raj Gandharba Grocery Thulo kharibot7 Raju Jain 9843523429 Workshop Sadashiv galli8 Rita K.C. 9841485738 Beauty Parlour Sadashiv galli9 Anju Bhujel Grocery Mayur galli, Bhatkeko pul

10 Pasang Dorje Lama 9808035889 Grocery Sairam galli11 Rita Bista 9803614069 Small hotels/ restaurants Shanti Galli12 R. S. Cold Store 9841016805 Grocery Gautambudha Marga13 Sibhari Aryal 9741106161 Grocery Sidhartha Marga14 Rita Aryal 9851283193 Grocery Sidhartha Marga15 Sudarson Shrestha 9851054078 Construction materials Janpath Galli16 Sabitra Bhujel Small hotels/ restaurants Janpath Galli17 Kamala Shahi 9803040358 Small hotels/ restaurants Janpath Galli18 Shiba Parajuli 4770674 Grocery Janpath Galli19 Pratap Dawadi 9841704703 Grocery Janpath Galli

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location20 Suna Lal Thakur 9808130564 Barbar Shop Janpath Galli21 Subtra Shrestha 9849371877 Tailoring Janpath Galli22 Sudeep Sudeep Tailors Tailoring Rajesh Marga23 Parbati Basnet 9844000644 Bag Shop Janpath Galli24 Sankar Bahadur Shrestha Grocery Parbati Marga25 Sanubabu Shrestha Grocery Parbati Marga26 Nirmala Gautam Grocery Rajesh Marga27 Om Om Khaja Ghar Small hotels/ restaurants Rajesh Marga28 Maya Shrestha 9841808937 Grocery School Galli29 Shusma Shrestha 9849443911 Tailoring School Galli30 Bimal Kumar Shrestha 9849157026 Small hotels/ restaurants School Galli31 Sunita Tamang Grocery Panchayan Marga32 Bikash Amatya 9843489630 Stationary Jwagal Galli33 Suraj Shrestha 9841228099 Workshop Jwagal Galli34 Raju Tamrakar Grocery Chakupat35 Keshab Maharjan 5360480 Grocery Chakupat36 Wolam Deula 9841304314 Grocery Imukhel Galli37 Bhanu Maya Deula 9813141157 Grocery Bangalamukhi38 Rabindra Maharjan 9851127232 Handy Craft Ikhache39 Laxmi Chitrakar Grocery Ikhache Galli40 Suresh Tamrakar Workshop Kumbeshwor

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location41 Sachendra Khadgi 9840016407 Grocery Thapahiti Tole42 Dipesh Khadgi 9841953664 Grocery Bangalamukhi43 Hari Karki 9841904988 Grocery Dhapa gal44 Basant Shrestha 9843555539 Small hotels/ restaurants Dhaugal Galli45 Nipun Bajracharya 5533701 Workshop Worubahal46 Bimala Lama 5552067 Tailoring Chakal galli47 Surendra Pd. Chaudhari 9841379218 Art Shop Mikha Bahal Galli48 Krishna Maharjan 9841666545 Grocery Ngakhachok49 Sanu Babu Maharjan 5547349 Grocery Dhaugal Galli50 Rita Khadgi Meats Dhaugal Galli51 Rajesh Shing 9841350762 Grocery Dhaugal Galli52 Bikash Shrestha 9841714280 Small hotels/ restaurants Dhaugal53 Khud Bahadur Balami 9849755772 Small hotels/ restaurants Dhaugal54 Anoj Maharjan 9803545368 Small hotels/ restaurants Dhaugal55 Parbati Khadka Panpasal Saliche Galli56 Gyanbhakta Maharjan Tailoring Kulima Galli57 Rajaram Karanjit 9841276288 Grocery Chochhen58 Rejina Maharjan 9803366308 Tailoring Chochhen59 Krishna Maharjan Grocery Velachan Galli60 Hirakaji Awale 5006543 Small hotels/ restaurants Kulima Galli61 Setimaya Tamang 9843201514 Tailoring Kulima Galli

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location62 Prem Nakarmi 9841043174 Construction materials Kulima Galli63 Kiran Dangol 9841204500 Ornaments Saliche Galli64 Niranjan Shrestha 9849364078 Grocery Dupta nayache65 Amrit Raj Shaky 9841295292 Ornaments Hakha Galli66 Padma Shrestha 9843074483 Small hotels/ restaurants Dupta nayache67 Jina Maharjan Vegetables Dupta nayache68 Nechhe Lal Maharjan Grocery Gangbahal Galli69 Mina Waiba 9843194113 Small hotels/ restaurants Dupta nayache70 Anita Rai 9841868416 Clothes Mashangalli, Mashangalli71 Shushila Rai Grocery Mashangalli, Mashangalli72 Girish Shreshta Clothes Mashangalli, Mashangalli73 Mukesh Shing Grocery Mashangalli, Mashangalli74 Gita Gupta Tailoring Mashangalli, Mashangalli75 Sujan Shreshta Grocery Mashangalli, Mashangalli76 Raju Lama Radymade Mashangalli, Mashangalli77 Mikki Mistra Orniments Mashangalli, Mashangalli78 Menaki Bista Orniments Mashangalli, Mashangalli79 Shanti Bista Clothes Mashangalli, Mashangalli80 Rubi Lama Clothes Mashangalli, Mashangalli81 Krishna Yadav Clothes Mashangalli, Mashangalli82 Ritesh Panta Grocery Mashangalli, Mashangalli

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location83 Dinesh Khadka Cap Ratna Chawk, Mahabaudha84 Radha Aryal Clothes Ratna Chawk, Mahabaudha85 Sujan Gautam Bag Ratna Chawk, Mahabaudha86 yuv Raj Khanal Clothes Ratna Chawk, Mahabaudha87 Gautam Badhur Rai Radymade Ratna Chawk, Mahabaudha88 Ramkrishna Tamang Clothes Ratna Chawk, Mahabaudha89 Rajan Karki 9849823717 Clothes Ratna Chawk, Mahabaudha90 Gyanendra Shakya Garment Ratna Chawk, Mahabaudha91 Bhabnath Gautam 9841209906 Garment Ratna Chawk, Mahabaudha92 Ishor Maharjan Garment Ratna Chawk, Mahabaudha93 Gauraishankar Rauniar Garment Ratna Chawk, Mahabaudha94 Mohan Shreshta Garment Ratna Chawk, Mahabaudha95 Rajesh Lama Garment Ratna Chawk, Mahabaudha96 Nagendra Gupta Clothes Ratna Chawk, Mahabaudha97 Nabraj Bhatta 9841335274 Garment Ratna Chawk, Mahabaudha98 Ram Gawali 9841539525 Garment Ratna Chawk, Mahabaudha99 Dev Giri Clothes Mahabaudha

100 Sarala Shreshta Radymade Mahabaudha101 Shivahari Shreshta 9841234369 Shoes Mahabaudha102 Ramesh Dahal 9808957814 Clothes Mahabaudha103 Indra Kuwar 9813920371 Clothes Mahabaudha

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location104 Subash Regmi Clothes Mahabaudha105 Subash Khadka Clothes Mahabaudha106 Bikash Jaishwal Clothes Mahabaudha107 Suchin Dev Clothes Mahabaudha108 Dilliram Kandel Clothes Mahabaudha109 Janga Bhadur Sunar Clothes Mahabaudha110 Balram Shreshta Clothes Mahabaudha111 Suresh Khadka Radymade Ratna Chawk, Mahabaudha112 Dipak Acharya Clothes Mahabaudha113 Rajendra Shreshta Clothes Mahabaudha114 Shree Gopal Shreshta Clothes Mahabaudha115 Rambadhur Thapa Magar 9851162504 Clothes Mahabaudha116 Sudhir Agrawal Clothes Mahabaudha117 Manoj Rauniyar Clothes Mahabaudha118 Jiban Shreshta Clothes Mahabaudha119 Prem Sundhar Shreshta Bangles Ashan Galli120 Sarita Rohila Clothes Bisal Bazar121 Raj Kumar Pandey Clothes Bisal Bazar122 Kishor Agrawal Grocery Bisal Bazar123 Mukesh Pareek Cosmetic Shop Bisal Bazar124 Raju Khadka Clothes Bisal Bazar

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location125 Bijya Shrestha Clothes Bisal Bazar126 Om Shrestha Clothes Bisal Bazar127 Kedar Rauniyar Small Hotel Bisal Bazar128 Ujjoul Hada Grocery Bisal Bazar129 Bina Magar Clothes Bisal Bazar130 Puspa Prasad Pradhan Grocery Bisal Bazar131 Arun Kumar Mahato Cosmetic Shop Bisal Bazar132 Birendra Chand Radymade Bisal Bazar133 Rabi Gupta Grocery Bisal Bazar134 Nirmala Tuladher Grocery Bisal Bazar135 Sova Sthapit General Store Bisal Bazar136 Madhan Shreshta General Store Bisal Bazar137 Parmeshowrlal Shrestha Grocery Bisal Bazar138 Hiralal Shah Cosmetic Shop Bisal Bazar139 Saroj Kumar Pradhan Utensils Mahabaudha140 Arun Shrestha Grocery Bisal Bazar141 Karm Maharjan Grocery Bisal Bazar142 Nadim Ahamad Clothes Mahabaudha143 Bhir Kumar Bajarachaya Clothes Mahabaudha144 Yogendra Sadi Bandor Clothes Mahabaudha145 Sita Lama Radymade Bisal Bazar

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location146 Mohamad Knalil Tailoring & Clothes Bisal Bazar147 Kailash Agrawal Grocery Bisal Bazar148 Ramesh Khadka Radymade Bisal Bazar149 Bijaya Kumar Mittal Radymade Bisal Bazar150 Simran Thapa Ornaments Bisal Bazar151 Binaya Rouniyar Radymade Hanuman Dhoka152 Shivaratna Agrawal Ornaments Hanuman Dhoka153 Rajendra Basnet Radymade Hanuman Dhoka154 Manish Kalwar Grocery Hanuman Dhoka155 Laxuman Rauniyar Radymade Hanuman Dhoka156 Sujendra Shrestha Chura Pasal Hanuman Dhoka157 Manju Chaudhari Radymade Hanuman Dhoka158 Suresh Maskey Ornaments Hanuman Dhoka159 Anup Agrawal Grocery Makhan Galli160 Mahesh Sthapit Ornaments Hanuman Dhoka161 Hiralal Shah Ornaments Hanuman Dhoka162 Suresh Rauniyar Ornaments Hanuman Dhoka163 Rampukar Shah Belt Hanuman Dhoka164 Sandip Prasad Gupta Clothes Bisal Bazar165 Suresh Maharjan Clothes Mahabaudha166 Narayan Shrestha Hardwar Mahabaudha

S.N. Name of Owner Name of Shop/ Contact No. Type of Business Location167 Suresh Shah Clothes Mahabaudha168 Anjila Bista Clothes Mahabaudha169 Kapil Dev Shah Clothes Mahabaudha170 Sunita Shrestha Clothes Mahabaudha171 Ridhika Koirala SmallHotel Mahabaudha172 Dinesh Kumar Shah Clothes Mahabaudha173 Rajendra Prasad Sharma Clothes Mahabaudha174 Ramesh Agrawal Clothes Mahabaudha

APPENDIX 2: RESETTLEMENT PLAN IMPLEMENTAION SCHEDULE

Resettlement Action Plan Implementation ScheduleYear 2013 Year 2014

S.N. Action Responsibility January February March April June July1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1 Fixed Cut -off date Project/DSC-32 Census Survey of Affected Business DSC- 3

3 Preparation of RAP DSC-34 Submission draft RP to ADB PID5 Submission final RP to ADB PID6 ADB approved RP ADB

7 Implementaion of RP PID

ANNEX 3: ATTENDENCE SHEETS OF PUBLIC CONSULTAION

APPENDIX 4:

PHOTOGRAPHS OF PUBLIC CONSULTAIONS

Enumerator in RAP update survey at DNI -7 Participation in FGD at DNI - 4

Participation in FGD at DNI -3 Enumerator in RAP update survey at DNI – 5