Due Diligence Report Project Number: 41509-013 June 2016

PNG: Rural Primary Health Services Delivery Project (Loan 2785 and Grant 0259) Prepared by the Department of Health for the Asian Development Bank. This due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgements as to the legal or other status of any territory or area.

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Papua New Guinea

Rural Primary Health Services Delivery Project

DUE DILIGENCE REPORT

Naramko Community Health Post Site

June 2016

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INDEX

Executive Summary 3

Project and Community Health Post Description 4

Naramko Community Health Post Site - Description and Area 6

Scope of Land Use/Purchase 9

Socioeconomic Information 11

Information Disclosure, Consultations and Participation 13

Grievance Redress Mechanism 14

Applicable Policies and Laws 15

Agreements on Land Use 17

Compensation and Benefits 20

Budget and Sources of Funds 21

Institutional Arrangements 21

Implementation Schedule 22

Monitoring and Reporting 24

ANNEXURES (Available Upon Request)

Annex One: Site Plan

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Annex Two: Land Survey 26

Annex Three: Land Investigation Report 27

Annex Four: Valuation Report 50

Annex Five: Voluntary Land Use Agreement 52

Annex Six: Certificate of Alienability 56

Annex Seven: Deed of Release 57

Annex Eight: Sale & Transfer of Land 59

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Naramko, East Sepik Province

A. EXECUTIVE SUMMARY

The proposed Naramko Community Health Post site will be located in an underserved rural

location in Ward 15 of Yamil Tamaui Rural LLG and due diligence has confirmed that the site meets

the selection criteria of the Project for the location of a new community health post. The land

proposed for building the health post is deemed suitable and sufficient (0.794 hectares) for the

construction of a community health post and three staff houses, being located on flat land, in a

central location, with good access by both road transport. It was surveyed in September 2014 and

is k ow for ally as Yaritoya or lo ally as Koko ali , Portio 119C, Mili h of Suai , Four il of Wewak. It was initially provided for the existing aid post around 1958 and the landowning clans

have willingly agreed to development of the new Community Health Post on the same site. It is

situated beside the main Sepik Highway which runs from Wewak to Maprik town.

The landowners have agreed to alienate land for the community health post. Initially they signed

a Voluntary Land Use Agreement with the National Department of Health (NDoH), on the

understanding that the land would be eventually alienated and they would be compensated once

surveying and Provincial Government and Department of Lands and Physical Planning (DL&PP)

processes were completed.

The Project followed standard Asian Development Bank safeguards processes including extensive

consultation with the local community, use of applicable National land laws and regulations and

due diligence to ensure that local people will not experience major adverse impacts. The

landowner groups willingly provided the land in consideration of the benefits of having a

community health post in their community.

The process of obtaining the title has been completed. A land survey has been completed and

lodged with the Surveyor General and the District Lands Officer has completed the Land

Investigation Report and valuation as part of the GoPNG land acquisition process.

The Certificate of Alienability has been obtained and the sum of K54,600 was paid for the land on

13th September, 2016 with funds provided by Hon John Symonds, Member for Maprik, through

the District Development Authority from DSIP funds.

The Project has proceeded with preparing the tender documents and award of a contract for

construction of the Community Health Post. Construction will commence once ADB approval of

the safeguards process is completed.

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B. PROJECT AND COMMUNITY HEALTH POST DESCRIPTION

Background

1. The Rural Primary Health Services Delivery Project will strengthen the rural health system in

PNG by increasing the coverage and quality of primary health care in partnership with state and

non-state service providers to support the Government of PNG to implement the National Health

Plan as it relates to rural health. The Project covers two (2) Districts in each of the following eight

(8) Provinces selected by the Government of PNG: Eastern Highlands, East Sepik, Enga, Milne

Bay, Western Highlands, West New Britain, Morobe and the Autonomous Region of Bougainville.

2. The Project will make improvements in both the supply and demand sides, and strengthen

the policy and legal framework for health services at all levels. There are six outputs:

Output 1 – National policies and standards: assisting the National Department of Health

(NDoH) to develop policies, standards, and strategies for new Community Health Posts, and

human resource strengthening of the rural health sector. This will result in the

development of provincial health service plans, and improvements in the health

information systems.

Output 2 – Sustainable partnerships between Provincial governments and non-state actors:

Partnership Committees have been established to improve coordination and efficiency

among providers, (churches and NGOs) and to increase consistency and accountability

Output 3 – Human resource development in the health sector. The Project will increase the

skills of health personnel in rural communities, focusing on the existing workforce. It will

help provinces to address performance and retention issues.

Output 4 – Community health facility upgrading. The Project will build 32 new Community

Health Posts with 96 staff houses as well as providing medical equipment and small vehicles

(cars, boats, or motorbikes). It will also provide sanitation facilities, waste management

facilities and establish renewable energy supplies for those health facilities

Output 5 – Health promotion in local communities: The Project will support village health

olu tee s a d i ease o e s i ol e e t a d o u it e gagement in delivering

health se i es ased o the health isla ds f a e o k.

Output 6 - Project monitoring, evaluation and management: The Project has established a

Project Support Unit (PSU) as part of the NDoH which will be used as part of its health

system strengthening activities.

3. East Sepik Provincial Health Office has selected Naramko in Maprik District as one of the

sites to construct a new Community Health Post under Component 4 of the Project. Sites

selected by the Provinces were required to satisfy the following criteria:

(i) the facility or site is located in a participating Province and participating District and is

in a predominantly rural area;

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(ii) the proposed works have been identified and designed by the relevant implementing

agency in a participatory manner with input from the community;

(iii) community consultation for selection of the site has been conducted;

(iv) the proposed works are integrated into a comprehensive Provincial Health Plan;

(v) the proposed facility/site has available/earmarked budget for recurrent costs in the

health function grant;

(vi) the proposed facility/site has sufficient human resources/staff and supervision

capacity;

(vii) institutional and financial arrangements for construction, operation and maintenance

of the facility and access to the facility have been agreed upon by the Provincial

Administration;

(viii) the proposed works comply with all requirements of relevant National laws and regulations and ADB's Safeguard Policy Statement (2009) and the Environment

Management Plan, Environment Assessment and Review Framework, and Land Assessment

Framework;

(ix) the State has clear and unencumbered title to the associated land plot on which the

selected health facilities are located or the Community Health Post is to be located, without

claims of third parties, and the Province has supplied adequate written confirmation of the

same from the relevant authorities and community participants, as applicable, including

relevant permits, deeds, and other title and lease documentation; and

(x) access to and from the site and proposed facility for vehicles or other means of

transport to the site will already be in place or will be constructed in parallel with the

project and at the expense of non-project funds.

4. Within each participating Province, the Districts to participate in the Project will satisfy the

following criteria:

(i) The District is selected with a view to maximizing the delivery of health services for rural

populations that are most underserved at the outset of the Project such as the percentage

of the population accessible to health facilities within 2 hours traveling time.

(ii) The District is selected with due consideration for the ability to absorb and utilize the

proposed investment of resources, taking into account levels of security, law and order,

governance, and administrative capacity.

5. Each of the sites chosen for the construction of a new Community Health Post requires less

than one hectare of land to accommodate the health fa ilit a d th ee staff houses. The p oje t s impact is limited to partial loss of land, and in some sites, crops and trees. The landowners and

local communities are expected to benefit from improved access to health services and short-

term employment opportunities from infrastructure construction and maintenance. The

acquisition of small plots of land for the Community Health Posts is based on the laws,

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egulatio s, a d poli ies of the PNG Go e e t a d the ADB s “afegua d Poli “tate e t (2009). The Project will not finance Community Health Posts that involve compulsory land

acquisition and/or involuntary resettlement impacts. The Project is building on State land or

church leased land and preferably, such as at Naramko, on land where there has been a previous

aid post and land is available.

Naramko Community Health Post: Description and area

6. East Sepik has a population of 433,380 (2011 census), with population densities varying

greatly over the Province. The Maprik District, where Naramko is situated, has some of the

highest densities of 175 persons/km2 with an average for the District of 80 person/km2. The

Province has six Districts, 26 Local Level Governments (LLGs), and 647 wards. Its population is

served by the Provincial General Hospital in Wewak, three District Hospitals, 37 health centres

and 87 aid posts. In 2010, the mortality rates per 1000 were: 79/1000 for infants under one year,

and 115 for under five year olds (National Research Institute Health Report, 2010).

Image 1: Map of the Sepik Region – Papua New Guinea

7. Maprik District is located on the southern side of the Torricelli Range and includes the

foothills around Maprik. Naramko is situated, approximately 15 minutes drive from Maprik

town, which is 89 kilometres (1½ hours) from the Provincial capital of Wewak. The village has

good access as it is located on the main Wewak-Maprik sealed highway. The population of

Maprik District is 72,235, while Yamil Tamaui LLG has a population of 17,398, living in 3,454

households, according to the 2011 census.

Naramko

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8. The people of Naramko migrated from Kukum, in the mountains to the north of the present

site, at the time the road was built around 1960. Ward 5 (Yenigo) where Naramko is located, has

a population of 1,253.

9. The Aid Post at Naramko was built in 1958 and was started by a traditional medicine

practitioner named Jimbikum. It is now staffed by one Nursing Officer and two Community

Health Workers who serve the communities of Malmba 1, Malmba 2, Naramko, Yenigo, Kwimbi

and Waikagum. It is located on a large irregular shaped, but roughly rectangular site, bounded

to the south by the main Sepik Highway to the east, by raised land with a bush road and to the

north by a line of trees and then village houses. The land is 0.794 hectares and largely flat. It is

rather wet and swampy in parts especially during the wet season. The old Aid Post has a rotten

floor because of the wet.

The site for the proposed new Community Health Post is owned by five clans of Naramko, Yenigo

and Malba. They are Rakamakum, Winjikuatmukum, Gejabikum, Timakum and Nindimi.

The portion of land is variously known as Kokobali (local name) or Yaritoya (formal name) and

is located approximately 15 km from Maprik. The landowning group consists of 398 individuals

and the Land Investigation Report confirms that there is sufficient land for the group; estimating

that i 60 ea s ti e the e ill still be 5-6 hectares of land per capita when allowing for

population growth at current rates.

10. Community consultations with Malmba 1, Malmba 2, Yenigo, Kwimbi, and Waikagum

communities were held in January 2014, using the Community Action Planning process

encouraged by the Department of Health to promote the Healthy Islands Concept. The villagers

are enthusiastic about the new project and have cleared much of the land in expectation of

construction starting.

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Image 2: Sketch Map of Naramko (Naramgo) Village

Image 3: Site for new Community Health Post at Naramko

CHP SITE

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C. SCOPE OF LAND USE/PURCHASE

11. The land proposed for the Community Health Post was surveyed in September 2014 and is

known formally as Yaritoya or locally as Kokobali , Portion 119C, Milinch of Suain, Fourmil of

Wewak. It was initially provided for the old, existing aid post around 1958 and the landowning

clans have willingly agreed to development of the new Community Health Post on the same site.

It is situated beside the main Sepik Highway which runs from Wewak to Maprik town. The land

is almost flat and is used only for the old aid post. There is a dirt road running along the eastern

boundary and some village houses outside of the surveyed boundary at the back of the section

on the north-western side, screened by tall trees and coconut palms. There is plenty of space for

the proposed development, which will not encroach on the village. No resettlement is necessary.

The process of negotiating the land acquisition has followed the principles of free, prior and

informed co se t, a d eets all e ui e e ts of ADB s “afegua d Poli “tate e t.

Image 4: Existing staff houses at Naramko Aid Post constructed of bush materials

12. Currently the land proposed for the Community Health Post has four buildings on it,

occupying about one fifth of the site: an old permanent aid post with tank, one permanent staff

house made of corrugated iron and timber, and two bush material staff buildings. These will all

be retained in the new plans for the Community Health Post. The aid post is presently staffed by

one Nursing Officer and two Community Health Workers who live at the site. The buildings are

situated on the road side of the site and the area around them is kept clear with the grass cut

short. There are a few large trees, coconuts, and shrubs around the periphery and outside the

site boundary. Most of the site is covered by secondary regrowth of shrubs with no economically

useful trees and no gardens.

13. Those signing the Voluntary Land Use Agreement on 10th April 2014, on behalf of landowners

were:

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Arus Glawe on behalf of the Rakamakum clan

Stanley Romi on behalf of the Winjikuatmukum clan

Gibson Hutgus on behalf of the Gejabikum clan

Seni Bakin on behalf of the Nindimi clan and

Leneath Zechari on behalf of the Timakum clan

Image 5: Landowners meeting to discuss land acquisition at Naramko Community Health Post

site

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Image 6: Maprik District Health Manager, Raymond Pohonai, and landowners signing the MoA

for Naramko Community Health Post and observed by RPHSDP Safeguards Specialist

D. SOCIOECONOMIC INFORMATION

14. People in Maprik District practice low intensity mixed staple production of yam, taro and

banana for subsistence as well as growing vegetables, and people earn moderate incomes from

the sale of cocoa, Robusta coffee, vanilla, betel nut and fresh food as cash crops. Production is

maintained through the use of land improvement practices such as drainage and mounding, and

it is generally an area of high agricultural potential. Men build fences around gardens to protect

them from feral and domestic pigs. Soil fertility techniques such as green composting, fallow

mounding, and growing leguminous crops are used to keep soils productive. Farmers dig very

deep ditches to drain swampy land, and use soil retention barriers across slopes to slow or

prevent movement of soil downhill. They also use long 2-3 metre stakes to support vines of

lesser and greater yams. Greater yams are planted at the top of deep holes in order to grow

tubers to an extraordinary length. Holes are dug up to 2 m deep and 0.5 m across, then refilled

with fine tilth of soil. A seed yam is placed in a small mound on the top of the hole, and the tuber

grows down into the softer soil. The huge yams are used in competitive displays and exchanges.

15. Vegetables grown include kaukau, tapiok, pumpkin, sugar cane, amaranthus, aibika, beans,

cucumbers, peanuts and corn. Sago palms, tulip trees (used for food and to make bilums),

breadfruit, mango, ton, and galip nut are also important. Other fruits and nuts include coconuts,

banana, pawpaw, pineapple, betel nut and betel pepper vine (the catkin is used to chew with

betelnut/buai).

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16. There is a clear division of labour with men doing most of the clearing, digging of drains,

fencing, house construction, selling of cash crops such as coffee and cocoa, and running of village

meetings. Women contribute more labour in general and are responsible for almost all of the

tilli g, pla ti g, eedi g, a d ha esti g of ops apa t f o a s, hi h a e o side ed e s work). They also carry most of the firewood, food, and water, feed pigs, care for children, and

do the cooking. While cocoa and other cash crops are usually viewed as being o ed e , women are also involved in harvesting.

Image 7: Naramko village houses with sago thatched roofs

17. While garden food is abundant, there is often a shortage of protein in diets, and past

nutrition surveys have found up to 50% of children are stunted, and as many of 25% suffering

from wasting. In recent years the situation has improved, due to the development of widespread

trading networks for dried and fresh fish from the Sepik River. Some of the fish caught in the

Sepik is brought to the Maprik market and exchanged for garden foods

18. As the road leading to Wewak and Maprik is a reasonably good sealed highway, farmers

have easy access to the large markets there. Most family income comes depend on the sale of

fresh food, followed by cash from cocoa, and lastly betel nut. In 2000 there was a rapid

expansion of vanilla growing, as prices were very high. However, vanilla needs two drier months

(to slow vegetative growth and induce flowering), and well-drained soils, so some areas are not

suitable. Also there have been extreme price fluctuations and since 2004, the price has dropped

rapidly. Vanilla needs 3-6 months of careful, slow curing, and because villagers did their own

curing (unlike in other countries where specialist businesses do this), with limited knowledge of

processing, and with little extension support, the quality of the beans was seriously lowered. All

these factors have led to the collapse of the vanilla industry, although there are hopes it can be

revived if curing processes and marketing can be improved. The production of low quality

robusta coffee has suffered a similar setback to vanilla and has now largely been replaced by

cocoa.

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19. There is some small-scale alluvial mining near the river, but as yet, no large-scale mining

extraction industries in the province. Income from alluvial mining is quite small, and only

available to those whose land is by the river. Despite a large migrant population from East Sepik

living outside the province, little money is remitted back to rural villages. Other sources of cash

are small trade stores selling basic imported items, transport businesses, trading as middlemen

(mostly fish and betelnut).

20. The Naramko landowners say that they have ample land for gardens, and there will be no

impacts on the village economy or on individual household incomes due to the alienation of land

for the CHO construction. Apart from minor disturbances to the environment during

construction, there are unlikely to be any adverse socio-economic impacts on the affected

households, and they will benefit from the land payments made for the purchase of clan land.

E. INFORMATION DISCLOSURE, CONSULTATIONS, AND PARTICIPATION

21. There have been extensive and on-going consultations and meetings between the East Sepik

Health Office, the District Administration and the community at Naramko regarding the

proposed new Community Health Post. The main consultations are outlined below:

The initial community consultation and awareness was undertaken by Officers of the

Provincial Health Office and RPHSDP Mentor for East Sepik, Jack Purai, together with the

District Health Administrator. This focused on the importance and benefits of the

Community Health Post and how the PNG Government and its stakeholders wanted to

provide much needed health services to remote areas. The need to free up land for such

investments was explained and the hope expressed that the community would take

ownership of the development for generations to come. It was explained that the project

would have minimal social and environmental impacts and that control measures would

be taken to minimise any effects upon the community.

The land screening and assessment process included a review of the participatory

community consultation report done by the RPHSDP Health Promotion and Provincial

Health Office team following their visit on 23th August 2013. Community participants for

this Community Action Planning (CAP) process came from Naramko and surrounding

communities.

A field visit to the proposed site was made on 10th April 2014 by the Project Safeguards

Specialist, Wendy Lee, Provincial Safeguards Officer, Penias Suano, East Sepik Province

Health Office Projects Officer, Anton Kafur and Maprik District Health Officer, Patrick

Number, in order to assess the site for potential social and environmental impacts, to

meet with landowners and sign a Memorandum of Agreement (Voluntary Land-Use

Agreement) for use of the land by the National Department of Health and to disclose to

the community other matters such as the Grievance Redress Mechanism. An interview

was held with the Community Health Worker and consultations with affected persons to

fully inform them of their entitlements and to ensure that they understood the project,

its impacts, and the responsibilities of parties concerned.

The proposed boundaries of the land were identified, marked, and surveyed in August,

2014 and originally lodged with the Surveyor General in September, 2014.

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Boundaries were confirmed and agreed by the Land Officers, an official Department of

Lands & Physical Planning Land Investigation Report was completed by the District Lands

Officer, together with a valuation, and both were lodged in in July 2015. Land title

documents were then prepared by officers of the Department of Lands & Physical

Planning and the Certificate of Alienability was obtained from the Secretary, Department

of Provincial and Local Government Affairs which enabled the land to be transferred to

State ownership.

22. Communities and affected people visited by the Project staff were encouraged to discuss

any issues of concern to them. Often questions were asked about how the construction would

be tendered and whether local firms were eligible to bid. All staff working on the various

components have stressed that the tender and contracting process will be conducted in an open

and transparent way so that all eligible firms can bid for the work, if they qualify according to the

tender criteria.

Image 8: Landowners checking boundaries of Community Health Post site with surveyors

F. GRIEVANCE REDRESS MECHANISM (GRM)

27. The Project will establish a GRM, which will be accessible (considering literacy levels),

predictable (known procedures, within a set timeframe), and transparent. The Provincial

Safeguards Officer (PSO) will be the grievance redress focal point to address Project related

concerns that may arise during implementation. Through public meetings, communities and

affected people have been informed by the RPHSDP that they have a right to grievance resolution

and have been informed of how they can have access to the GRM. Complaints and grievance

procedures will be based on those outlined in the Land Assessment Framework. These will be

adapted slightly to ensure communities are easily able to register any complaints at the local level

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and that there is a publicly acceptable forum to deal with them. A Grievance Registration book

will be established in every Community Health Post site, to be held and administered by a trusted

literate member of the community. This may be the Village Magistrate, Ward Development

Councilo , the Aid Post OIC, o e s g oup leade o othe app op iate pe so , hose the community members themselves. Anyone may app oa h this pe so the G ie a e ‘egist a to lodge a complaint or grievance. After the tender is awarded and before construction starts

the RPHSDP health promotion and gender team will visit communities to set up a health

committee under the Ward Development Committee structure and to conduct general health and

HIV/AIDS awareness training for community members and contracting staff. During this, the

Grievance Registrar will be identified and trained as part of the Health Committee.

23. The Grievance Registration book will record who is making the complaint, the substance of

the complaint, to whom it has been referred for action and the date. Grievance procedures may

address benefits, contractor compliance, social concerns and other issues apart from disputes

relating to legally contestable land ownership rights. These will be referred to the District or

Provincial Land Officers, who will institute a process to resolve land disputes and grievances

based on accepted procedures of mediation. As required, the participation of appointed and

traditional leaders will be facilitated to achieve a satisfactory resolution of any land issues at the

local level. Every attempt will be made to ensure the women affected by such issues, irrespective

of traditional constraints, are included in the mediation processes. Any disputes arising over

alienated land or compensation must follow procedures set out in the Land Disputes Settlement

Act 2000, (explained in Section G, paragraph 35), and if mediation fails, must then be referred to

an appropriate court of law.

24. The Grievance Registrar in the village will, in the first instance, contact the Provincial

Safeguards Officer whose key function in relation to the GRM is (i) to record, categorize and

prioritize the grievances and inform the PSU; (ii) in consultation with the Project Coordinating

Committee and complainant, settle the grievances; (iii) to inform the aggrieved parties about the

solution or, if a solution is not found (iv) to forward unresolved cases to the RPHSDP Project

Manager or to higher authorities.

25. The Grievance Registrar must forward any complaint to the PSO within five days of receiving

it. The PSO will discuss with the Project Coordinating Committee members and endeavor to find

a solution within two weeks of receiving the complaint. For unresolved complaints, the PSU

Project Manager will consider the complaint and within one month will convey a decision to the

APs. The PSU staff, along with local health officials, will assist the Project Manager in reviewing

a d add essi g the o plai t. If the AP s a e ot satisfied ith the P“U s de ision, they may

then take the grievance to the PNG judicial system.

G. APPLICABLE POLICIES AND LAWS

31. The PNG Constitution adopts customary law as part of the underlying law of the country

and recognizes the property rights attached to customary land. According to the 2000 Underlying

Act, customary law comprises the rules, rights and obligations pertaining to an individual or group

by custom and tradition. Customary law applies and the courts recognize it where it is not

inconsistent with written law. The Constitution also guarantees the right of the citizens to

protection from unjust deprivation of property. No land or interest in land may be acquired

compulsorily by the government, except as it is required for public purposes or other justifiable

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reasons. In the event of expropriation of land, just compensation must be made, by the

expropriating authority.

32. While the Constitution does allow for compulsory acquisition for building infrastructure for

health, the RPH“DP has stipulated that o la d ill e take ithout the la do e s full agreement. Moreover, this agreement must be secured through a transparent process following

the FPIC principles (free, prior and informed consent). To ensure that these principles are adhered

to, the Project Safeguards staff have made joint field visits with the Department of Lands and

Physical Planning staff to the proposed Community Health Post site.

33. The Land Act (1996) deals with ownership and use rights of customary land.1 It also sets

out the procedures for the government to acquire customary land required for public purposes.

The key provisions of the Act are (i) the government may acquire land, including improvements

on land; (ii) usually the government negotiates agreements with the customary landowners for

purchase of required land, but it can also compulsorily acquire the land; and (iii) the acquisition

process involves several steps, including initial investigation, land survey, land investigation report

(including genealogies of owner groups), determination of compensation value of land and any

improvements, payment of compensation, registration of land for state ownership and transfer

of title.

34. This process is being followed by the RPHSDP, working closely with the Department of

Lands and Physical Planning, who are required to do the initial investigation including

documenting genealogies of clans, valuing the land and its assets, registering the surveys and

providing file numbers. Once this is done and approved, the file is sent to the Department of

Provincial and Local Government so that a Certificate of Alienability can be issued for the title to

be registered as State land. At the same time as the Government land acquisition process is

proceeding, the Project is preparing standard safeguard documents for ADB approval.

35. The Land Disputes Settlement Act (2000) sets out the procedures for resolution of disputes

involving customary land. The Act provides for a land disputes committee at provincial level and

land courts at local, district and provincial levels. The committee can appoint land mediators. The

Act promotes resolution of disputes through mediation based on the principles of traditional

dispute settlement. If mediation fails, it is followed by appeal to the courts. The registration of

customary landowners as an Incorporated Land Group (ILG) has been used a lot in private sector

projects in PNG. While it is not a mandatory requirement for acquisition of land in case of public

sector projects, registration of ILGs may be helpful in dispute resolution and negotiation with

landowners. On the other hand, ILGs in the past have often been fraudulently used for the

interests of a small group, rather than the whole clan. The RPHSDP will not insist on registration

of landowners into an Incorporated Land Group (ILG), unless there is a specific reason why it may

1 The customary land includes land owned, used or occupied by a person or community in accordance with current customary usage. Access to land and resources is embedded in social relationships and expressed as customary land rights to utilize resources. Small clan-based groups live in the villages, managing their own resources, and exercising the right to utilize them. These groups (matrilineal or patrilineal clans which are composed of sub-clans, lineage groups, and at the lowest level extended households) are typically made up of “primary rights holders” – the recognized traditional leaders of the group – who collectively have the authority to allocate secondary use rights through their spokesperson(s). Different cultures have different ways of allocating land between primary and secondary rights holders.

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be necessary to secure land.

36. The Fairness of Transaction Act of 1993 relates to the effect of certain transactions, to

ensure that they operate fairly without causing undue harm to, or imposing too great a burden

on, any person, and in such a way that no person suffers unduly because he is economically

weaker than, or is otherwise disadvantaged in relation to, another person. The purposes of this

Act are to (a) ensure the overall fairness of any transaction which (i) is entered into between

parties in circumstances where one party is for reasons of economic or other advantage

predominant and the other is not able to exercise a free choice; or (ii) for one reason or another,

without attaching any evil design or bad faith, appears to be manifestly unfair or not to be

genuinely mutual; and (b) allow for the re-opening and review of any transaction irrespective of

fault and validity, enforceability or effect of any agreement; and (c) ensure the fair distribution

and adjustment of rights, benefits, duties, advantages and disadvantages arising out of a

transaction. Transaction means any contract, promise, agreement, dealing or undertaking of an

economic or commercial nature whether supported by consideration or not entered into between

parties, and includes (a) an informal, complete or incomplete transaction; and (b) a transaction

governed by customary law.

37. Land Group Incorporation (Amendment) Act (2009) and Land Registration (Amendment)

Act (2009). These Acts were brought into effect in 2011, following recommendations from the

National Land Development Taskforce. The Acts recognize the corporate nature of customary

groups and allow them to hold, manage and deal with land in their customary names, and for

related purposes. These also facilitate the voluntary registration of customary land, to be known

as egiste ed la la d , a d akes that la d a aila le fo de elop e t th ough the use of Incorporated Land Groups (ILGs). These laws encourage (a) greater participation by local people

in the national economy by the use of the land; (b) better use of such land; (c) greater certainty

of title; (d) better and more effectual settlement of certain disputes; (e) legal recognition of the

corporate status of certain customary and similar groups, and (f) conferring on them, as

corporations, of power to acquire, hold, dispose of and manage land, and of ancillary powers; and

(g) encouragement of the self-resolution of disputes within such groups.

38. As noted above, the RPHSDP does not require landowners to register as an ILG, but may

negotiate with these groups, where they exist, or encourage groups to register if they want to

further develop their land in future.

H. AGREEMENTS ON LAND USE

39. The series of consultations, which were held with landowners and affected people,

regarding the land at Naramko has been described in Section E. The teams visiting emphasized

the benefits the community would gain by having a fully functioning Level 2 health service in the

area, in return for providing land to the state. Environmental and social impacts were discussed,

and the measures to control these were explained.

40. The process followed in acquiring the land is that laid out in the Land Assessment

Framework which consists of the following steps for land purchase through negotiated

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agreement2:

NDoH/Project Support Unit (PSU) requests the Department of Lands & Physical Planning

(DL&PP) to issue an official land file number for the Community Health Post site to be

purchased

NDoH/PSU employs surveyors to determine boundaries, location, size and area of the

land to be purchased. It requests the Surveyor-General to register the surveys.

At the same time, PSU ill e uest the Value Ge e al s Offi e VGO)) to send a Valuer to

value the land and any improvements (for example, garden crops, food trees, timber

trees, structures). His/her report is sent to the VGO.

NDoH/PSU will also request the DL&PP to ask the Provincial Land Officer (PLO) to conduct

the investigation for land purchase.

PLO will prepare a Land Investigation Report (LIR) including ownership genealogy, rights

and interest held in the land and estimated value of improvements to land in consultation

with the landowners, the Valuer-General and other relevant government offices.

The LIR is then submitted to the respective Province for the Provincial Administrator s (PA) signed recommendation for the land to be alienated.

The completed LIR is sent back to DL&PP who compiles the land file made up of: the

registered survey plan, the valuation certificate, and the PA-approved LIR.

DL&PP then sends the land file to national Department for Provincial and Local Level

Government Affairs (DPLLG) who will prepare a certificate of alienability confirming that

there is no impediment to land purchase.

This is then returned to the DL&PP which prepares the purchase documents and advises

NDoH when it is ready for payment. The DL&PP executes the purchase of the land. Details

are then published in the Government Gazette allowing has to be gazetted for 21 days in

case of objections.

NDoH receives the land file with the survey plan, the LIR including the valuation report,

and the Certificate of Alienability, and the land is paid for with state funds from various

sources. (In the case of Naramko this is the Provincial Government.)

Copies of the signed documents are also sent to the PLO for their records

NDoH keeps records of titles, approvals and any lease agreements.

41. As explained above, part of the process was a joint visit by the Provincial Safeguards Officer,

District Health Manager, and Project Safeguards Staff to discuss and sign the voluntary land use

agreement, pending completion of the processes for full alienation of the land, by negotiated

agreement. During the same community meeting there was disclosure of GRM to the community

a d a e pla atio of the EMP a d o t a to s te s a d o ditio s.

42. The Memorandum of Agreement (VLUA) regarding land use, outlines the responsibilities

and commitments of clans and communities as: agreeing to NDoH using the land for construction

of the Community Health Post; affirming that the process has been based on free and prior

informed choice; noting that, in the case of a voluntary donation of land, if the state does not use

the land, permission to use the customary land ceases; and agreeing that they are legitimate

representatives of all the clans jointly owning land. The agreement also states that when the

State purchases the land, it would require, compensation and transfer of title. The NDoH

responsibilities explained in the LAF, are to minimize land requirements; conduct necessary

2 Land Assessment Framework (Revised), 11 September 2013, PNG: Rural Primary Health Services Project, prepared by the National Development of Health, GoPNG, p.11

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surveys to determine land area, identify owners and affected people; meaningfully consult

landowners and disclose the grievance redress mechanism; avoid damages to assets on the land;

give priority to Affected Persons for employment in civil works at the COMMUNITY HEALTH POST

site, and ensure all land payments due to APs have been completed and the site is free of

encumbrances before construction work starts. A copy of the Voluntary Land Use Agreement can

be found in Annex Four. Now that the land has been alienated and compensation paid, this VLUA

has been superseded by the full transfer to the NDoH of the title to the land.

43. The DL&PP procedures required a site visit by a surveyor to produce a cadastral and

topographical plan to determine boundaries and map assets. The completed survey plan is

attached in Annex 2. The District Customary Lands Officer made a further visit to complete the

Land Investigation Report (LIR) and valuation, which is necessary to complete GoPNG land

alienation processes. After the survey, LIR, and valuation, the documents were signed by the

Provincial Administrator and forwarded to DL&PP headquarters, following the LAF procedures.

The file was then sent to the Department of Provincial and Local Government Affairs, which issued

a Certificate of Alienability (CoA). The District Development Authority, on receipt of the CoA paid

the full cost of the land according to the valuation at a public gathering on 13th September, 2016.

Image 9: PSU architect discussing Community Health Post designs with members of the

Naramko community

44. The project at Naramko includes construction of the standard four-bed design for a

Community Health Post, and will include provision of equipment, drugs, and allocation of 3-4 staff.

The Province has committed to providing the required staff, and the Project will ensure that they

receive the relevant training to ensure the centre operates at the required standards for Level 2

health facilities in PNG. The existing aid post will be maintained (probably as a storeroom), and

the existing staff house will be maintained as a waiting house for patients from elsewhere. A plan

of the proposed Community Health Post is attached in Annex 1.

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45. Following completion, the land acquisition process has been reviewed and verified by an

independent third party consultant contracted by the PSU for this purpose. She has provided

verification that (i) the local community and landowners support the Community Health Post

construction and have agree to provide their land; (ii) consultations and negotiations with

landowners have been undertaken meaningfully, freely and in good faith and the landowners

have made informed decisions on use of the land, and (iii) terms and conditions of the agreements

have been explained, understood and agreed to by the landowners. A copy of the verification

evidence is provided in Annex 6.

I. COMPENSATION AND BENEFITS

45. The Naramko landowning clans agreed initially to give their land voluntarily for the building

of the Community Health Post However, ultimately, permanent use of the land was obtained

through negotiated purchase following the Land Act and LAF. This is in accordance with GoPNG

policy, that all state infrastructure should be built on state land. Once the GoPNG land acquisition

process had been completed, and the title transferred to the NDoH, the landowners received

compensation from the state for both the value of the land, and the replacement cost for

improvements. Affected landowners and land-users were consulted according to LAF

requirements, and the costs were calculated by a registered Valuer from the DL&PP using the

DL&PP Valuation Schedule (2013) taking into account the replacement value. This was then

reviewed and approved by the Valuer-General. There were no structures on the site except for

the aid post and staff buildings. The valuation of land by DL&PP is based on accepted replacement

costs, which include (i) adequate information about any recent land transactions; (ii) land value

by types; (ii) cropping patterns and crop production; and, (iv) availability of land in the sub-project

areas. The Valuer-General ensures that any compensation is based on prevailing market rates or

replacement cost principles.

46. Affected persons at Naramko will benefit from the cash payment for land, and by having

some short-term employment opportunities (mainly unskilled work) as a result of the project,

during the construction phase. The requirement to hire local labour where possible, will be part

of the contracto s o t a t. While such employment opportunities on their own do not ensure

sustainable livelihoods, being paid at least the minimum wage, and enjoying working conditions

as per ILO Core Labour Standards (a recognized requirement for ADB financing of the Project), the

PSU is confident that APs will be slightly better off financially as a result of the project, and

certainly better off in terms of health services.

47. The RPHSDP recognizes that gender considerations apply to all public infrastructure

projects. In conducting this due diligence exercise, women who will be affected by this project

have been consulted, both in mixed groups with men, but also in groups of women. Measures

proposed to ensure gender equitable practices and outcomes include:

Iterative consultations with women throughout all stages of the project cycle when

preparing for and constructing the Community Health Post

That women clan members, not just men clan members be recorded in the LIR and

valuation processes conducted by DL&PP, and included any subsequent benefits

Women being informed about how they can lodge grievances with the Project (and

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ultimately ADB) if they are dissatisfied with any aspects of the project

Ensuring that women Affected Persons (APs) and not just men, are offered priority waged

employment during construction, and are afforded equal pay and opportunities

Addressing concerns women APs might have with safety and security issues, in contexts

where they have to relocate their gardening activities

Ensuring that all socio-economic data collected for the project is gender disaggregated in

order to analyse the differential impacts at intra-household, intra-inter clan, and

community level.

Social risks associated with HIV/AIDS and other STIs will be mitigated to a large extent by

employing as many local people on construction activities as possible and by awareness

and prevention programmes designed to empower women and inform both women and

men of the risks. All contracted staff will undertake a RPHSDP course designed for the

purpose.

J. BUDGET AND SOURCES OF FUNDS

48. The GoPNG has declared its intention to increase the proportion of land owned by the

State and has an annual budget to pay for the land needed for public service infrastructure. The

GoPNG will therefore fund all land acquisition activities involving landowner compensation while

the Project finances consultant services to oversee the land acquisition and monitoring of land

activities. In the case of East Sepik, it is the District Development Authorities which are paying for

the Community Health Post land.

The exact budget for land acquisition activities at Community Health Post sites will vary from site

to site. The costs for Naramko are outlined in the table below (excluding the consultancy costs):3

Item Costs

Value of land to be acquired 52,100.00

Value of planted improvements 1,500.00

Structural Improvements – aid post staff houses

998.00

TOTAL COSTS (Rounded) K54,600.00

K. INSTITUTIONAL ARRANGEMENTS

49. The NDoH is the Executing Agency and the Provinces are Implementing Agencies for this

Project and the Provinces are responsible for the day-to-day implementation activities related to

land acquisition. These activities include:

Collaboration with and assistance to the Provincial/District Land Officer at the

Community Health Post site, to undertake their work and comply with government

p o edu es, the P oje t s poli ies a d ADB e ui e e ts

3 Costs from LIR / land valuation by DL&PP, based on Government Schedule (2013)

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Provision of resources to allow provincial staff to accompany Project Support Unit

(PSU) safeguards staff to sites

Collaboration with and assistance to the Provincial/District Land Officer, Provincial

Safeguards Officer, and PSU Safeguards consultants in consulting and negotiating

agreements with affected landowners and users

Facilitation of consultations with ward development councils and affected

communities and ensuring that all stakeholders are informed about the Project, its

policies and procedures

Ensuring the requirements concerning public disclosure of the provisions for land

acquisition and compensation are followed

Informing communities about the grievance redress mechanism, and overseeing

and monitoring the process

Signing Memoranda of Agreement for the use of customary land, with clan leaders

and affected landowners and/or users

Signing a Memorandum of Agreement with the NDoH agreeing to manage, operate,

support, staff, and provide budgets and supplies for the new facility.

Ensuring that cadastral land surveys, valuations, and Land Investigations Reports are

completed and registered with the Surveyor-General and DL&PP in a timely manner.

50. Provincial Safeguards Officers, and other Government staff who are involved in

implementing the P oje t s la d poli ies have been p o ided ith t ai i g i the ADB s so ial safeguard policies and procedures

51. The Provincial Safeguards Officer is also responsible for monitoring of land acquisition

activities, and will be the focal point for the Grievance Redress Mechanism. He/She is assisted

and supported by the Project Suppo t U it s Safeguards Specialists.

L. IMPLEMENTATION SCHEDULE

52. The implementation schedule for land related activities at Naramko is as follows:

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Activities Schedule

1 Confirm location and type of land ownership at Community

Health Post site

Jan 2014

2 Initial Provincial Health consultation with local communities to

confirm their agreement in principle to the project, assess means

of access and ensure site is suitable for development. Submit

draft sketch map indicating size of plot to RPHSDP.

Feb 2014

3 Procurement Manager organizes quotations and hire of a

surveyor to conduct cadastral and topographical survey at the

sight

April 2014

4 Complete survey fieldwork/visits May 2014

5 Submission of cadastral survey report to Surveyor-General for

registration

June 2014

6 DL&PP assigns File and Instruction No. for site July 2014

7 Request D&LPP/ Provincial Lands Office to prepare LIR, including

valuation of land and improvements

June 2014

8 Joint DL&PP / Provincial Lands Office and Safeguard Team visit to

site to complete LIR and Valuation (Lands staff), and ADB Land

Screening Report, Environmental Management Plan and Due

Diligence (PSU Safeguard staff)

April - Dec 2014

9 Consultations with affected communities and agreement on land

use/acquisition, with signing of a Voluntary Land Use Agreement

between landowners and the State (NDoH, PHA, and Provincial

Administration), witnessed by Land Officers

April 2014

10 Disclosure of ADB Safeguards Provisions to communities,

including Grievance Redress Mechanism

April 2014

11 LIR and Valuation submitted to Provincial Administration for

approval and signature. Confirmation of portion/plot numbers.

July 2015

12 Safeguards staff prepare Environmental Management Plan and

Due Diligence Report

Nov-Dec 2015

13 RPHDSP organizes geotechnical survey by engineer April 2015

14 RPHSDP architect prepares design and site plan for Community

Health Post + approval

May 2015

15 Valuer-General verifies the land valuation at the Community

Health Post site

June 2015

16 Certificate of Alienability approved September,2016

17 DL&PP and Provincial Lands Office complete land purchase. Land

is purchased and title issued to NDoH

September,2016

18 NGO verification of land processes and safeguards procedures January, 2017

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M. MONITORING AND REPORTING

53. The RPHSDP Safeguards staff will submit all Land Screening, EMPs and Due Diligence

reports to ADB detailing the land acquisition processes. The Provincial Safeguards Officer will be

responsible for on-going monitoring of the land activities, (supported by PSU), including assisting

in the monitoring of contractor compliance with the EMP. The PSU will prepare semi-annual

progress reports for ADB as part of Project performance monitoring. An external NGO has been

appointed to undertake third-party monitoring and verification of the land acquisition processes.

ANNEXURES (Available Upon Request)

Annex One: Site Plan

Annex Two: Land Survey

Annex Three: Land Investigation Report

Annex Four: Valuation Report

Annex Five: Voluntary Land Use Agreement

Annex Six: Certificate of Alienability

Annex Seven: Deed of Release

Annex Eight: Sale & Transfer of Land