Annual Social Safeguard Monitoring Report Project Number: 42254-013 Loan Numbers: Annual Report January to December 2016

SRI: Northern Road Connectivity Project

National Road Component

Prepared by the Road Development Authority, Ministry of Higher Education and Highways for the Asian Development Bank.

This social monitoring 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 on ADB’s 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 judgments as to the legal or other status of any territory or area

DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA MINISTRY OF HIGHER EDUCATION AND HIGHWAYS

ROAD DEVELOPMENT AUTHORITY (RDA)

NORTHERN ROAD CONNECTIVITY PROJECT ADDITIONAL FINANCING

ANNUAL SOCIAL SAFEGUARDS REPORT

JANUARY - DECEMBER 2016

Prepared by: Environment and Social Development Division

Submitted to Asian Development Bank

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TABLE OF CONTENT

ABBREVIATIONS ....................................................................................................................... 2 1. INTRODUCTION ..................................................................................................................... 3

1.1 Background.................................................................................................................... 3

1.2 Project ........................................................................................................................... 3

1.3 Scope of Social Safeguards ........................................................................................... 4

1.5 Purpose of the Annual Monitoring Report ...................................................................... 6 2. STATUS OF RP IMPLEMENTATION ...................................................................................... 7

2.1 Institutional Arrangement and Capacity .......................................................................... 7

2.2 Compensation and Rehabilitation .................................................................................. 7 3. SUMMARY OF MONITORING RESULTS AND KEY FINDINGS ............................................ 8

3.1 Rambewa – Medawachchiya section of A009 Road ....................................................... 8

3.2 Monitoring Social Safeguards during Performance Based Maintenance period ............. 8

3.2.1 Land Acquisition and Resettlement ............................................................................ 9

3.2.2 Public Complaints ....................................................................................................... 9

3.2.3 Complying with Gender Action Plan ........................................................................... 9

3.2.4 Socio Economic Development of the project area .................................................... 10 4. COMPLIANCE STATUS ........................................................................................................ 11 5. FOLLOW UP ACTIONS......................................................................................................... 12

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ABBREVIATIONS

ADB Asian Development Bank

CP Contract Package

DPs Displaced Persons

DSD Divisional Secretariat Division

ESDD Environment and Social Development Division

GAP Gender Action Plan

GRM Grievance Redress Mechanism

MHE&H Ministry of Higher Education and Highways

NCP North Central Province

NP Northern Province

NRCP - AF Northern Road Connectivity Project - Additional Financing

PMU Project Management Unit

RDA Road Development Authority

RP Resettlement Plan

RoW Right of Way

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1. INTRODUCTION

1.1 Background

Sri Lanka is a country with an emerging economic growth in the South East Asian region of the

world. The civil unrest which continued in the past three decades had a significant impact on its

economic and social development. Northern Province is one of the worst conflict affected regions

of the country. The damage to physical infrastructures has been severe and extensive. In

particular the road network has not been maintained or repaired thus making an adverse impact

on transport of goods and material that are required for the development of the region.

Northern Road Connectivity Project executed under the Road Development Authority (RDA) of

Ministry of Higher Education & Highways (MHE&H) rehabilitated and improved 170 km of class

A and B roads (National roads in northern and north central provinces). This project was funded

by Asian Development Bank (ADB) (loan number 2639 SRI) within the time period of 2011 to

2015.

1.2 Project

Further to this original project, an additional loan was approved by ADB on 14th of September

2012 to improve the connectivity in Northern and North central provinces of the country. Thus,

the Northern Road Connectivity Project - Additional Financing (NRCP - AF) will rehabilitate and

improve additional 110km of national highways located in two provinces. The road sections of

A029, A014, AB019, B283 and B211 roads will be rehabilitated and improved under nine (9)

contract packages. Details on road section, contractor and location are presented in table 1.1

below and refer Figure 1.1 for the Location Map.

Table 1.1: Contract packages of Northern Road Connectivity Project - Additional Financing

Package Road section Province

Length (km)

Contractor Current status

CP11 Vavuniya-Horowupathana (A029) Road from 24+000 to 34+950 km

NCP 10.9 International Construction Consortium (Pvt) Ltd (ICC)

In Performance Based Maintenance (PBM) stage

CP12 Medawachchiya - Kebithigollewa (B283) Road from 0+000 to 12+600 km

NCP 12.6 Consulting Engineers & Contractors (Pvt) Ltd (CEC)

In PBM stage

CP13 Medawachchiya - Kebithigollewa (B283) Road from 12+600 to 25+400 km

NCP 12.7 K.D.A. Weerasinghe & Co. (Pvt) Ltd (KDAW)

In PBM stage

CP14 Kebithigollewa- Padaviya (B 211) Road from 0+000 to 15+500 km

NCP 15.5 K.D.A. Weerasinghe & Co. (Pvt) Ltd (KDAW)

In PBM stage

CP15 Kebithigollewa- Padaviya (B211) Road from 15+500 to 31+345 km.

NCP 15.8 Hunan Road & Bridge Corporation – KDAW JV

In PBM stage

CP16 Medawachchiya-Mannar-Talaimannar (A014) Road from 47+000 Km to 62+100 Km

NP 15.1 Maga Engineering Pvt Ltd (MAGA)

In PBM stage

CP17 Medawachchiya-Mannar-Talaimannar (A014) Road from 62+100 Km to 76+500 Km

NP 14.5 V V Karunaratne & Company (VVK)

In PBM stage

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Package Road section Province

Length (km)

Contractor Current status

CP18 Jaffna-Pannai-Kayts (AB019) Road from 0+000 Km to 10+000 Km

NP 10.2 Maga Engineering Pvt Ltd (MAGA)

In PBM stage

CP19 Jaffna-Pannai-Kayts (AB019) Road from 10+000 Km to 20+275 Km

NP 10.0 Maga Engineering Pvt Ltd (MAGA)

In PBM stage

CP04a Navathkuli – Keraitivu – Mannar (A032) Road “Sangupity Bridge” Mannar End Approach 4.5Km

NP 4.5 CML MTD – RR Construction Joint Venture

In PBM stage

CP-20 Vavuniya-Horowupathana (A029) Road from 16+000 to 22+00 km

NCP 6.0 Edward & Christie In PBM stage

CP-21 Vavuniya-Horowupathana (A029) Road from 5+000 to 16+000 km

NP 11.0 Access Engineering

CP 22 Rambewa - Medawachchiya (A009) Road from 140+760km to 150+400km

NCP 9.64 RR Construction (Pvt) Ltd

Under construction

NCP – North Central Province, NP – Northern Province

1.3 Scope of Social Safeguards

The project is categorized as category B for involuntary resettlement in accordance with ADB's safeguard policy statement (2009). The improvement works of subprojects is envisaged to be within the existing right of way boundaries except for Jaffna - Pannai - Kayts (AB019) road for which land acquisition is required. During feasibility studies a resettlement plan was prepared for this subproject and it was approved by ADB in June 2012. The land acquisition for this subproject was started in June 2013. The Resettlement Plan was updated in 2014 and was approved by ADB. The requirement of additional acquisition of eight (8) lots was identified and an addendum was prepared for this in 2015. With regard to indigenous people, the project is categorized as category C where no specific action is required. This project is classified as the “effective gender mainstreaming” by ADB and a Gender Action Plan (GAP) has been formulated for the project. During implementation the contractors shall prioritize employment of local women ensuring the equal pay for equal work and employ 15% of women for road maintenance. For this project, a Grievance Redress Mechanism (GRM) was introduced by ADB together with RDA. The two stages GRM is supposed to solve the project related impacts efficiently to the satisfaction of the stakeholders.

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Figure 1.1: Location Map of NRCP - AF Roads

CP18 CP19

CP17

CP16

CP15

CP14

CP 11

CP21

CP 12

CP13

CP20

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1.4 Monitoring of Social Safeguards Compliance

During construction phase: ESD Division inspected CP22 in order to monitor the compliance of

social safeguards. The monitoring of public complaints, monitoring of establishment of Grievance

Redress Committees and making contractors aware about the gender action plan were the key

activities.

During Performance Base Maintenance (PBM) Period: ESD Division carried out monitoring

sessions to construction packages of NRCP-AF during PBM in order to monitor social safeguards

compliance of PBM activities. The monitoring of the reestablishment of affected livelihoods in

AB019 subproject, public complaints during PBM and monitoring of gender action plan were the

key activities carried out during visits. The consultation with the Executive Engineer of RDA,

Project Engineer of RDA, Residential Engineer of PIC and responsible officers for PBM of each

package was carried out during monitoring.

1.5 Purpose of the Annual Monitoring Report

Monitoring of the environmental and social safeguards compliance of the project is entrusted to Environment and Social Development Division (ESDD) of RDA. This annual report is prepared by ESDD to present the situation of social safeguards of the project and the monitoring results to ADB. The report covers the period from January to December 2016.

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2. STATUS OF RP IMPLEMENTATION

2.1 Institutional Arrangement and Capacity

The land acquisition process is time consuming as it involves with several government organizations. For the subproject AB019, a special implementation mechanism was adopted to expedite the land acquisition process. This acquisition process was coordinated by the Land Division of RDA, where the experienced officers are available. The Land Division coordinates with Divisional Secretary, the acquiring officer and PMU for smooth implementation of the acquisition. The measures taken by Land Division and PMU to accelerate the acquisition process is listed below. 1. The expedited process adopted for land acquisition with 14 steps. 2. Nominating one officer from Land Division to coordinate with Divisional Secretary. 3. Conducting awareness meetings on land acquisition to Divisional Secretariat staff. 4. Introducing an incentive scheme for DS staff and staff of Valuation Department. 2.2 Compensation and Rehabilitation As mentioned above, the acquisition process has proceeded up to paying compensation to DPs. The following table summarizes the acquisition information on 15+430km to 20+275km.

Category No. of Lots Percentage (%) Payment of compensation for private owners

129 62.6

Section 33 notice issued 65 31.5 Compensation Review Board 05 2.4 No of Government Lots 04 1.9 Land Donation 03 1.4 Total 206 100

Source: Land Division, RDA Out of the total of 206 lots (including additional acquisition), compensation has been paid for 136 lots (66.6%). For 65 lots (31.5%), section 33 of Land Acquisition Act has been issued. This is to inform that the compensation for particular land lots has been deposited in the courts is Rs.2,457,750/= as no owners have been presented to receive the compensation. Three owners holding 5 lots ownership went to review board for inadequacy of compensation and the payment was reviewed by valuation (earlier Rs.353,000 now Rs.657,500) and this was paid to DS. But since the APs request interest for late payment the interest amount (Rs.143,297.47) payment process is ongoing.

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3. SUMMARY OF MONITORING RESULTS AND KEY FINDINGS

3.1 Rambewa – Medawachchiya section of A009 Road The road section is proposed to be developed within the available ROW hence resettlement need may not arise. During field inspections, it was observed that construction are within the existing ROW. The Grievance Redress Committees (GRMs) were established in Grama Niladari Divisions and the contractor was advised to record and attend to complaints, requests and suggestions of public and other stakeholders. There were no complaints recoded fort the period under review. The contractors were informed about the gender action plan and recruitment of female labor. 3.2 Monitoring Social Safeguards during Performance Based Maintenance period Based on the Contracts, each Contractor is respponsible for Performance Based Maintainance (PBM) of the responsible contract package for five years after the completion of construction activities. PBM of all contract packages except for CP22 started in January 2016. In general, following aspects need to be addressed during the PBM with respect to social safeguards complinace.

Monitoring of land acquisition and resettlement of AB019 road.

Attending to public complaints.

Employing 15% of female workers for maintenance work A maintainance team has been deployed by each contract package in order to fulfill the activities required to be carried out in the maintenance period. The compliance is at the moment is monitored by the PMU through the Project Engineer and the PIC. The respective Executive Engineer (EE) of RDA is also responsible for monitoring of the PBM. As mentioned above, ESD Division conducted inspections to sample contract packages in order to monitor the progress of PBM with respect to social safegurads considerations. Findings of such field inspections and stakeholder consultations on safeguards compliance of PBM is summarised below.

Figure 3.1: Consultation the EE - Medawachchiya

Figure 3.1: Consultation the Technical Officer of the maintainance team of CP12

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3.2.1 Land Acquisition and Resettlement As mentioned in the section 2 of this report, the compensation was paid to all the affected people appeared for inquiries. In monitoring the Kayts town area where the front sections of shops were affected, during the first quarter of year 2016, it was observed that the old shops are reconstructed with adding more value and their livelihoods also have been restored.

3.2.2 Public Complaints In discussion with Executive Engineer, it was found out that complaints are attended immediately. The main types of complaints were felling of branches of trees and road accidents. He also mentioned that, at an emergency the contractors recruit more labor from the area and attending to the work. 3.2.3 Complying with Gender Action Plan In complying with the Gender Action Plan, the females were engaged for the maintenance activities. The table 4.1 below summarizes the data of labor force engaging in maintenance activities. The percentage of female laborers is 42.4. This is above the expected target of 15% in the gender action plan. During the field inspection, information was collected on the female involvement of contract packages and it is presented below. Further, the contractors were advised to train females on use of machines for weeding and skilled labor work. Table 4.1: Summary of laborers engaging in contract packages for the maintenance period

Contract Package Total Maintenance

staff Male Female

CP 11 1 1 0

CP 12 10 6 4

CP 13, CP 14 & CP 15 6 3 3

CP 16 5 2 3

CP 17 4 0 4

CP 18 & CP 19 7 7 0

Total 33 19 14

% of Females 42.4

Figure 3.3: Reconstructed shops in Kayts town LHS

Figure 3.4: Reconstructed shops in Kayts town RHS

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3.2.4 Socio Economic Development of the project area During the field inspections, more developments adjacent to project roads were observed in the area. Majority of the structures are commercial in nature. Further, during consultations with the public, they mentioned that with the road development, the transport services have been improved and they are happy for this development.

PBM of Contract Package 12 – Engagement of Female Labor

The contract package 12 is handled by Consulting Engineers & Contractors (Pvt) Ltd (CEC) and has a total labor force of ten (10) for the maintenance activities. Out of this, four (4) laborers are females. These laborers are residing in Vavuniyawa area and they work in a cluster of roads. All female laborers are in their 40’s and they are trained to use machines for weeding. They are also trained for other activities required in maintenance period. Majority of these female laborers are working in the CEC since 2011.

PBM of Contract Package 13,14 and 15 – Engagement of Female Labor The contractor for contract packages 13, 14 and 15 is K.D.A. Weerasinghe & Co. (Pvt) Ltd (KDAW). There are six (6) number of laborers carrying out maintenance work in these packages and three (3) of them are females. In consultation with these females, it was found out that they are from the same area and they like to engage in road works. The contractor provide transport facilities for them. It was also confirmed that they were paid the same wages as male laborers.

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4. COMPLIANCE STATUS The status of compliance with loan covenants with regard to social safeguards as at 31st of December 2016 is summarized in table 4.1. Table 5.1: Compliance status with loan covenants Reference Description Status as at 31st of December

2016

Schedule 5, para. 8 Grievance Redress Mechanism (GRM) need to be prepared within 6 months of effective Date, and establish a task force at the RDA for MOPH, to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances due to resettlement and environmental issues. The task force shall (i) make public the existence of this Grievance Redress Mechanism, through, a public-awareness campaign, (ii) review and address grievances of stakeholders of the Project, in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (iii) proactively and constructively respond to them.

The GRM has been established for all the packages including CP22 and the public and stakeholder awareness meetings has been conducted. During 2016, No complaints have been referred to GRM. All contract packages are attending to the complaints and requests.

Schedule 5, para. 12 Gender and Development Participation of 15% of women in the rehabilitation of the project roads and expansion of the road maintenance program, and raising awareness of road safety and potential transport related social problems.

The female labor involvement for the reporting period was 42.4%.

Schedule 5, para. 14 Land Acquisition and Involuntary Resettlement All land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; and (c) all measures and requirements set forth in the RP, and any corrective or preventive actions set forth in the Safeguards Monitoring Report.

The construction works of 22 is limited to the available right of way.

Schedule 5, para. 15 Land Acquisition and Involuntary Resettlement No physical or economic displacement takes place in connection with the Project until: (a) Compensation and other entitlements have been provided to affected people in accordance with the RP; and (b) A comprehensive income and livelihood restoration program has been established in accordance with the RP.

The land acquisition of CP19 was complete including additional acquisition. The DPs have reconstructed their structures and they are reestablishing their livelihoods.

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5. FOLLOW UP ACTIONS The land acquisition is completing and compensation was paid for 100% of DPs. The DPs are reestablishing their livelihoods. However, the interest payment for the person who went to Compensation Review Board need to be followed up. The GRM has been established for all contract packages including CP 22 and no complaints have been referred to the GRM during the reporting period. The public complaints at grassroots level have been attended by the contractors. The female participation in maintenance labor force is above the expected 15% as it 42.2%. This will be continued and contractors were encouraged to train female laborers to skilled labor work.