COMPENSATION PROCEDURES
This paper sets out the procedures and the structures
for assessing and delivering the compensation packages due to each affected
household and/or communities. The Compensation Policy provides guidelines for
determining which losses shall be compensated and who shall be eligible for
compensation. The Compensation Rates give the actual amounts payable for the
losses incurred.
All rates are base dated April 1996 and will be
indexed annually using the Lesotho Consumer Price Index (CPI)
· The design of the project as a whole shall minimize the need for the displacement of people and communities and the disruption of their livelihood systems insofar as this is compatible with the project's objectives.
· Where displacement is unavoidable, the costs thereof shall be borne by the project and mitigation measures planned and implemented as an integral part of the Project. Provision shall be made for the monitoring and evaluation of project impact, from the preparatory to the post-resettlement stages.
· People and communities affected by the development project shall have their livelihoods, living standards and conditions restored as closely as possible such that they are better off than they were before project implementation where possible.
· Affected people and communities shall be considered as project beneficiaries who shall be enabled to participate as fully as possible in the project implementation and not merely as recipients of compensation.
· Mindful of the implications of social disruption, displaced people and communities shall be resettled where possible as close as feasible to their original area of residence and under the same authority structures within areas designated by Government as host areas. The wishes of those desirous of making their own arrangements regarding their future area of residence shall be respected, subject to certain provisions.
· Special attention shall be given to the needs of vulnerable groups and individuals in terms of identification, support and monitoring.
· Affected individuals, families and communities have the right to be informed about, consulted on and to participate in the preparation, implementation and monitoring of the arrangements for their compensation and resettlement.
· The host community shall also be considered to be an affected party. The impact of the relocation and resettlement of displaced people on the host community shall be assessed and mitigation measures accordingly devised. They shall also participate in the planning, implementation and monitoring of the developments in their area due to the project.
·
Affected
people and communities shall not bear the costs of resettlement and relocation
and shall therefore be relocated/resettled and supported during the transition
period and compensated for losses they incur.
1.Land will be acquired by LHDA for LHWP purposes through the procedures set out in s. 39 of the LHDA Order of 1986 This will require prior approval of a Scheme by the Hon. Minister responsible for the project in terms of s.35 of the Order.
2. Land acquisition must also be in accordance with the Land Act 1979 (See sections 19(e) and 38 of the LHDA Order).
3. Section 40 of the Order should be applied to all land acquisitions for the dam, tunnel and hydropower construction and inundation.
4. The minor land acquisition required for road construction and other preparatory LHWP purposes shall be carried out subject to the same provisions as those for larger acquisitions, as given in Section 2.1.1 above.
5. The adjudication exercise carried out by LHDA and the Department. of Lands, Surveys and Physical Planning will provide the data LHDA is required to publish in terms of s.40 of the Order.
6.With the amendment of Sec.59 of the Land Act i.e.
extension of the right of LHDA to acquire and redistribute land, it would be
possible to implement the land for land option. A further option feasible identified is that of identifying the
people who volunteer to part with their land which could then be transferred
under a Deed of Donation in close collaboration with Land Allocation
Authorities
1) Under the Order (s39 (3)), once a Scheme has been enacted and published, LHDA has the duty to inform any persons whose rights or property will be affected by LHDA operations before it commences its works which may affect those rights or property.
2) In the case of property whereon there is an occupied dwelling the notice period is six months and in the case of other property or right to the land the notice period is one month.
3) Formal notification shall be given in writing and the method of sending these notices is specified as follows:
· Notification may be served on the owner of the property or land right, who shall sign for the receipt of the notice;
· If there is an occupant of the land or property who is not the owner of the property or land right, both the owner and the occupant shall be served with a formal notice of LHDA's intention to acquire the property or land right; or
· If the owner cannot be traced LHDA, in collaboration with the local authorities, kin and neighbors, shall try to locate his authentic representative, who shall be served with the notice.
1) Where a land for land option has been chosen, the household will be informed by the Compensation and Resettlement Task Team (CRTT), how much land it is eligible to receive based upon the cadastral records.
2) Each family will make its own investigations in its chosen destination area into the availability of land owned by people willing to part with it. LHDA will facilitate these investigations by providing transport and temporary accommodation in the destination areas. When the family concerned has identified some available land it will notify LHDA of the fields it has chosen.
3) LHDA shall be enabled to acquire land under Section 59 amended in the Land Act and accordingly shall have the power to redistribute land and provide titles to new landowners.
4) Families choosing the annual payment option may also want to farm in their destination area, and if land is available they will decide how much they want to acquire. They will make their own private arrangements with landholders that are willing to part with their land.
For each family wanting to be compensated for the loss of arable land by means of an annual cash payment, LHDA shall make such arrangements with a local financial bank to pay out such funds.
Much of the compensation for lost assets and sources
of income will be paid in the form of annual cash payments or lump sums.
The option of receiving annual cash payments will
also be applicable to Phase 1A, for the remaining portion of the 50-year
period.
2) The
duration of payments shall be decided by the affected household. The length of
time for these payments is fixed at 50 years, as determined from the date of
Land acquisition.
2) The annual payments will be delivered
to their recipients by means of depositing funds into a savings book account.
Each recipient household will have to have a savings book into which the funds
will be deposited by LHDA. Deposits will be made quarterly, to facilitate
budgeting by the family.
1) When a savings account is opened the account holder can nominate a beneficiary who will inherit the account in the event of his or her death. The bank or the agency administering the account will honor this nomination unless a contestant obtains a court order. In order to avoid strife in the event of death, the holder of an account will be encouraged to nominate his or her beneficiary when the account is opened. While compensation recipient could be advised by the LHDA on ways to ensure the welfare of his or her family in the event of death, the overriding principle or factor shall be according to existing laws of inheritance.
2) Compensation is intended for the benefit of the household, not for any one of its members alone. The head of the household is responsible for its assets, and is their custodian, but he is not the sole proprietor. In the event of a divorce the compensation package, including the payment shall be distributed according to the law requirements as well as according to the normal cultural and traditional ways of the nation.
2) The amount of lump-sum compensation is based upon the rate of M1800.00 per hectare of arable land discounted at a rate of 4.5% per annum converts to M37, 172.34 lump-sum according to the 1996 base figures, to cover a period of 50 years.
2) The investment so chosen must be adequate to provide an income in a long-term for the project-affected family. As stipulated in the policy all considerations shall be taken by LHDA to make sure that the family understands the implications of lump-sum payments. At times it might be wise to start off with say an amount covering 5 to 10 years for experimental purposes to initiate pilot projects.
3) The investment options shall be thoroughly examined and explained to the recipients, who should then be in a position to make correct decisions.
4) Lump-sum payment option must be fully understood by the recipients and no hurried decisions should be made or imposed, upon affected individuals and communities.
Decisions can be agreed between LHDA and the individual family as to how the lump-sum payments could be effected. It could also make allowance for embarking on the required training on the part of the affected household member for the purposes of running and managing the chosen investment option. It might therefore be necessary to start off first by issuing annual payments during the first years while training and other arrangements are being made to start off the enterprise chosen.
Most Lump sum payments will be made in respect of individually owned assets such as fields, gardens and trees etc. The procedure for effecting such payments shall be agreed between the LHDA and the affected individual household. A form of agreement stipulating the size and nature of affected property and amount shall be prepared. The affected individual household shall have a witness to countersign this agreement form. In some cases a chief or a member of Village Development Committee might be required to attach their signatures.
As indicated under 5.3 above
preferences of lump sums shall only be encouraged where affected households
have identified viable income generating projects. These payments are meant for encouraging households and
communities into getting into income-generating activities.
Where the recipient chooses
in-kind compensation the payment shall be made annually in such a way that the
quantities of crop mix received per hectare are: Maize 970kg/ha and Beans 30
kg/ha. This in kind recipient shall
have a once off option at any one time during the compensation period, to
change from in-kind to ash compensation. Areas less than 1000sq.m shall only be
compensated for in cash and in kind compensation will not be an option.
There are two ways of compensating owners of houses, kraals and outbuildings: provision of a replacement house/kraal or cash payment as compensation for the affected household.
This category includes most of the households in the Scheme Area.
1) Where LHDA acquires residential property on which there are one or more habitable houses, it shall, according to the choice of the owner either provide the same number of new houses with the same total floor area as the old ones; or amalgamate the floor area of the old dwellings into a smaller number of new houses, of at least equal quality and floor area to that of the old dwelling(s), at the new residential site.
Each household to be resettled/relocated shall be provided with one heating/cooking facility and shall have the option of accepting this or choosing a cash equivalent to the value of the facility determined by LHDA.
Each resettled/relocated household will be provided with one VIP toilet.
Other individually owned structures such as kraals, outbuildings and stables will be replaced at the new location or compensated for in cash to those households who do not require them.
2) In compensating for the loss of residential property, LHDA shall establish the replacement cost of this property, at the destination chosen by the affected family, at the current replacement cost. This amount shall constitute the housing credit due to that household. Up to the limit of that credit the affected household shall be given the choice of the following methods of rebuilding its homestead:
a) Built by the owner to a design approved by LHDA, under the monitoring of the LHDA building inspector, with LHDA making stage payments to the owner for the materials and for the work carried out;
b) Built by a contractor appointed by the owner, to a design approved by LHDA, under the monitoring of the LHDA building inspector, with LHDA making stage payments to the contractor; or
c) Built to a standard design approved by LHDA and the owner, appropriate to the given floor area, by a contractor engaged and paid directly by LHDA.
3) If, by choosing options a) and b) the owner can rebuild to his own satisfaction at a lower cost, the saving shall be made available to him as a lump sum for investment in additional housing or in an approved income generating investment.
4) Owners choosing to build by methods a) and b) will be required by LHDA to sign an indemnity, absolving LHDA from responsibility for the structural integrity of the building after the building inspector has signed for its completion.
5) If by choosing option c), LHDA will be responsible for the satisfactory completion of the new housing.
6) LHDA shall ensure demolition of old buildings after construction of replacement houses to prevent unauthorized occupation.
7) The owner shall be entitled to remove any materials he or she wishes to salvage within one month of vacating the old dwelling.
8) If a household whose dwelling is acquired by LHDA already has another house elsewhere, which it is willing to occupy after it is displaced, it may not want to be compensated with another house. In that case, and if LHDA is satisfied that the family concerned will be adequately housed, the housing credit may be used for other investment purposes. The same conditions shall apply to this sum of capital as to the investment of the lump sum described in Section 11.2.2 (b) 1 of the Compensation Policy.
9) If the affected household wants to purchase a replacement house, this option shall remain provided that the value of the house to be purchased does not exceed the amount of compensation agreed (replacement value of old house). If a difference in excess occurs, the owner shall pay this, and in cases where purchased house is cheaper, balance shall be paid to the house-owner.
10) Where LHDA displaces a household from its homestead, and where the household voluntarily moves into existing buildings elsewhere, there may be no need for LHDA to rebuild the old houses. If in the judgement of LHDA and of the affected household the latter may benefit more from the cash equivalent of the replacement housing than from the housing itself, cash will be paid.
In the case of those who are to relocate or resettle it will be necessary for LHDA to arrange a site visit to the chosen destination. This will enable the settler family to locate a suitable residential site and to arrange with the local chief and VDC for its allocation. If the site has to be bought LHDA will pay for it and the transfer to the settler family will be ratified as per Land Act procedures. The price to be paid for the site shall be governed by the valuation determined by the Department of Lands Surveys and Physical Planning.
1) Where LHDA intends to inundate or acquire a residential site and homestead, it shall ask the owners and occupants of the site where they wish to resettle or relocate.
2) LHDA shall allow a period of at least 6 months from date of notification of occupation depending on circumstances and provide the necessary information and other assistance, including visits to the preferred sites to help people to make their choices.
3) LHDA, together with the affected families, shall investigate the availability for allocation of residential sites, with land for gardens where this is desired, in the areas chosen by the prospective resettlers.
4) When families or communities who are to be relocated have decided where they want to go, site investigations shall be carried out jointly by the people who are to move, the host communities, their chiefs and other representatives, and LHDA.
5) LHDA shall facilitate the applications of resettlers to the local authorities for residential sites.
6) Should an extended family, a village community or any other group of neighboring households which are to be relocated wish to live close to one another in future, LHDA shall make every effort to assist them to obtain residential holdings in a single block or acceptably close to one another;
7) As a general principle households should be relocated within the same ward, but may be relocated elsewhere if:
· there are compelling social, economic or political reasons for their relocation elsewhere; or
· there is insufficient residential land available in the area of their choice.
1) Where LHDA acquires land that contains graves it shall discuss with the households responsible for the graves whether they want exhumation and reburial of the remains.
2) Graves will be exhumed and reburied according to the wishes of the family up to a cost limit established and given in the Compensation Rates.
3) If this is desired the chief and Land Allocation Committee of the area to which the families are to be relocated shall be asked to arrange for reburial sites to be provided.
4) The superstructure of the new graves, including tombstones, shall be provided to a standard at least as high as that of the old graves. If the surviving kin desire that new gravestones be erected these shall be provided.
5) The exhumation and re-interment shall be carried out with all due ceremony and ritual as agreed by LHDA and the surviving relatives.
6) The costs of the above provisions shall be fully met by LHDA.
1) Where LHDA acquires a commercial property the owner shall be given the choice between: -
· either receiving the full replacement value of the property in cash;
· or arranging for the design and construction of equivalent new premises, the cost of which would be borne by LHDA.
2) Where the normal flow of business in a commercial property that remains in situ is adversely affected by the project, resulting in a decrease in turnover, LHDA shall compensate the owner for his loss of profit during the period of the effect. This arrangement is only applicable in those businesses that keep good records on purchases and sales.
3) If the profits of a business are interrupted by its having to relocate, the owner shall be entitled to compensation for his loss of business during this period. The owner would however be required to support claims by records (purchases & sales) as in 6 above.
4) Where a business is forced by the project to close and will not be re-opened elsewhere, the value of the business, as distinct from the premises, shall be established and compensation paid to the owner. In such cases the owner shall be required to sign an indemnity, exonerating LHDA of any responsibility for subsequent fluctuations in the state of his domestic economy.
5) LHDA shall provide transport for the stock, the plant and equipment, and any other items the owner wishes to move to new business premises.
6) After construction of the replacement structures, the old buildings will be demolished to prevent unauthorized occupation. The owner shall be entitled to remove any materials he or she wishes to salvage within one month of vacating the old buildings.
1) Where land and communal resources are required for the resettlement or relocation of displaced families, communities within the host areas shall be eligible for compensation or payment.
2) Communal Compensation will be provided in proportion to the number of households' resettled/relocated in a host community.
In addition villages remaining in the Scheme Area, but losing some communal assets, will also be paid compensation in proportion to the number of households remaining.
3) LHDA will provide host communities with development benefits, to mitigate the impact of resettled households. These benefits could be provided in the form of improved school facilities and capacity, improved water supplies, health facilities, access, including provision of education and implementation of programmes related to improved management of natural resources for sustainability.
1) Every affected family needs to know exactly what compensation options are open to it, what its compensation entitlement will be, what relocation or resettlement options are available, and at what time or over what period it can move to its new destination.
2) To provide this information accurately and simply, to help each family decide on the options open to it, and to record a decision on the resettlement destination, the time of the move, and the compensation package, an authorized body is required whose members are fully conversant with LHDA policy, procedures and rates, who know the scheme area and enjoy the confidence of the people in it.
3) A Compensation and Resettlement Task Team (CRTT) will be established to carry out these functions. It will consist of two members from LHDA, two members elected from the scheme area, including the ALC representative, and F.O.T Manager within the area where the Field Operation Teams are operating.
4) The CRTT will be authorized by LHDA to negotiate with affected families in respect of resettlement and compensation and to reach agreements on behalf of LHDA with these families.
5). It will be necessary for LHDA’s Compensation section to review each agreement and if it is acceptable for a responsible officer to sign on behalf of LHDA. The agreement will then form a contract between LHDA and the household concerned.
6). The CRTT will be field-based in all areas of LHWP.
7). The CRTT will address itself, in the first instance, to each affected household. The main respondent will be the household head, but it is essential for the CRTT to satisfy itself that the decisions reached are broadly acceptable to other key members of the household.
8). The result of the CRTT’s work will, in each case, be an agreed compensation package, resettlement destination and schedule for moving, to which both LHDA and the household head are willing to commit themselves.
9). The CRTT will be within the Field Operations Team structure in LHWP areas. This means that the members of the CRTT are part and parcel of the FOT.
1) The CRTT will operate out of field offices, and will serve the LHWP areas. It will address the issues of compensation and resettlement at source.
2) The FOT within the HSG will be responsible for ensuring that the incoming households are successfully settled in terms of building new houses, roads, water supplies, school extensions and community centers.
Where feasible, and especially in the case of vulnerable groups and individuals, affected parties shall be relocated over the shortest distance possible and within the same chiefdom.
The criteria for Vulnerable Households shall be:
1.
The Household is to be Resettled/ Relocated
2.
The Household is Eligible for Minimum Threshold, and
. They must meet one or all of the following criteria :
· The head of the household is over the age of 60 years.
· The head of the household is ill or disabled.
· Any of the children resident in the homestead show signs of clinical malnutrition.
· The legal head of the household is female.
Special assistance to vulnerable households will take the form of:
- Allowing them first priority in site selection in the host area.
- Attempting, where feasible, to locate them near kin and old neighbors.
- Arranging for contractor-build if they are agreeable.
- Assistance with dismantling of salvageable materials.
- Assistance in preparing a vegetable garden.
- Monitoring of nutritional and health status.
- Annual Monitoring to
determine whether top-up payment is still applicable given changes in the level
of income and standard of living
Training for income restoration and assistance in exploiting the
economic opportunities provided by the project
Each Household under the resettlement programme shall be paid
disturbance allowance decreasing annually to zero over a period of three years
from the date of arrival at the resettlement or relocation destination.
An annual top-up amount will be made to the level of minimum threshold for a maximum period of 10 years as shall be determined from periodic assessment of household's annual income.
This will be paid for a maximum period of 10 years where the
top-up payment will reflect the difference between the threshold amount and the
household income.