RP1397

REPÚBLICA DE MOÇAMBIQUE

MINISTÉRIO DA PLANIFICAÇÃO E DESENVOLVIMENTO

DIRECÇÃO NACIONAL DE SERVIÇOS DE PLANEAMENTO

Mozambique Integrated Growth Poles Project

(P127303)

RESETTLEMENT POLICY FRAMEWORK

Draft Final

Maputo, February 2013

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LIST OF ACRONYMS

ANE National Roads Administration CBNRM Community-Based Natural Resource ManagementDA District Administration DCC District Consultative Council DNA National Directorate for WaterDNE National Directorate for EnergyDNPO National Directorate for Planning DNAPOT National Directorate for Land Planning DNPA National Directorate for Environmental Promotion and Education DPA Provincial Directorate of Agriculture DPCA Provincial Directorate for the Coordination of Environmental AffairsDPOPH Provincial Directorate of Public Works and Housing EA Environmental Assessment EDM Electricidade de MoçambiqueEIA Environmental Impact Assessment EMP Environmental Management PlanESIA Environmental and Social Impact AssessmentESMF Environmental and Social Management FrameworkESMP Environmental and Social Management PlanFAO Food and Agriculture OrganizationFIPAG Water Supply Investment and Asset Management FundGAZEDA Special Economic Zones OfficeGDP Gross Domestic ProductGOM Government of MozambiqueIDA International Development AssociationIDCF Innovation and Demonstration Catalytic FunMAE Ministry of State Administration MCA Millennium Challenge AccountMCC Millennium Challenge CorporationMDP Municipal Development Project MICOA Ministry for the Coordination of Environmental AffairsMINAG Ministry of Agriculture MISAU Ministry of HealthMOF Ministry of Finance MOPH Ministry of Public Works and Housing MSME Micro Small and Medium EnterprisesNCSD National Commission for Sustainable Development NEMP National Environmental Management Programme NGO Non-Governmental OrganizationPARPA Action Plan for the Reduction of Absolute Poverty PAP Project Affected PeoplePCU Project Coordination UnitPDD District Development Plans (Plano Distrital de Desenvolvimento)PDPF Provincial Directorate of Planning and Finance PDUT District Land Use PlanPEPA Environmental Quality Standards of Mozambique ProjectsPLPP Provincial level project personnel (with monitoring responsibilities)PPU Provincial Project UnitPRS Poverty Reduction Strategy

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RAP Resettlement Action PlanRPF Resettlement Policy FrameworkSDAE District Services of Economic ActivitiesSDMAS District Services of Women, Social Affairs and Health SDPI District Services of Planning and InfrastructureToR Terms of Reference UCA Coordination and Support Unit UNDP United Nations Development ProgramWB World BankWHO World Health Organization ZVDA Zambezi Valley Development Agency

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ACKNOWLEDGEMENTS

The preparation of the RPF comes under the Integrated Growth Poles Project (PROJECT), which is the World Bank (WB) support to the Government of Mozambique (GOM) strategy for inclusive and broad-based growth. The RPF is meant to ensure that relevant World Bank Safeguards Policies and GOM environmental and social policies are strictly adhered to in the design and implementation of specific subprojects.

The author, Mario Souto, wishes to thank all those who offered their valuable time to provide all kinds of information and data including in-depth perspectives during interviews and discussions and those who shared documents prior to and during the preparation of this document.

Special words of appreciation and acknowledgement go to managers and technical staff of government institutions and public companies who are the main stakeholders of this Project. They were committed and worked tirelessly to ensure that they gave their outmost feedback such that issues and concerns were conveyed adequately during the long and fruitful discussions. Reference is made to institutions such as MICOA, MINAG, CFM, FIPAG, GAZEDA, ZVDA, Provincial and District Governments.

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TABLE OF CONTENTS

LIST OF ACRONYMS I

ACKNOWLEDGEMENTS III

TABLE OF CONTENTS IV

EXECUTIVE SUMMARY VII

SUMÁRIO EXECUTIVO XI

1 INTRODCUTION 11

2 PROJECT DESCRIPTION 11

2.1 Project Development Objectives and Principles 11

2.2 Project Components 11

2.3 Anticipated sub-Project types under the Project 11

2.4 Sub-project activities ineligible for funding 11

3 PROJECT IMPLEMENTATION ARRANGEMENTS 11

3.1 Implementation by Component 11

4 DEVELOPMENT CONTEXT IN MOZAMBIQUE AND THE PROJECT AREA 11

4.1 General Context of Country Development and Project Relevance 11

5 PROJECT TARGETED AREAS 11

5.1 Location 11

5.2 Socio-economic Situation 115.4.1 The Zambezi Valey (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole 115.4.2 Nacala Corridor (Tete, Niassa and Nampula Provinces) and Nacala Growth Pole 11

6 POTENTIAL IMPACTS OF THE PROJECT 11

7 PRINCIPLES AND OBJECTIVES FOR THE PREPARATION AND IMPLEMENTATION OF A RESETTLEMENT POLICY FRAMEWORK 11

8 THE SOCIAL SCREENING PROCESS 11

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9 PREPARATION AND APPROVAL OF RESETTLEMENT ACTION PLANS 11

9.1 General Considerations 11

9.2 Public Consultation and Participation 11

9.3 Template for the Design of Subproject RAPs 11

9.4 Approval and Publci Disclosure of Site Specific RAP 1140

10 LEGAL FRAMEWORK 41

10.1 Relevant Mozambican Laws and Regulations 41

10.2 World Bank Policy Requirements 11

10.3 Gaps Between Local Laws and Bank Policy 11

11 ELIGIBILITY CRITERIA AND PRACTICAL ASPECTS OF RAP PREPARATION AND IMPLEMENTATION 11

12 METHOD FOR VALUATION AND COMPENSATION FOR LOSSES 11

13 INSTITUTIONAL FRAMEWORK 11

14 RESETTLEMENT MEASURES 11

15 COMMUNITY PARTICIPATION AND STAKEHOLDER INVOLVEMENT IN PLANNING, IMPLEMENTATION, AND MONITORING 11

16 GRIEVANCE REDRESS MECHANISM/ PROCEDURES 11

17 ARRANGEMENTS FOR RESETTLEMENT FUNDING 11

18 MONITORING AND EVALUATION ARRANGEMENTS 11

19 ESTIMATED RPF BUDGET 11

REFERENCES 11

List of Figures

Figure 1: Overview of the Project Area (Zambezi Valley and Nacala Corridor)...................................................................................................vii

Figure 2: The main development corridors in Mozambique................11Figure 3: The Districts of the Zambezi Valley.........................................11Figure 4: The PROJECT districts in Nacala Corridor............................11

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Figure 5: Angonia growth pole...................................................................11Figure 6: Nacala growth pole.....................................................................11Figure 7: Various water uses in the Zambezi Valley (Shire River).....11Figure 8: Men and women selling maize in the informal markets of

Tete City...................................................................................................11Figure 9: Land use planning session in Morrumbala District

(Zambezia Province)..............................................................................11

List of Tables

Table 1: Population of the Zambezi Valley by districts.........................11Table 2: Population of Nacala Corridor by districts..............................11Table 3: Possible resettlement implication of the Project....................11Table 4: Comparison of Mozambican Law and World Bank OP/BP4.12

on compensation....................................................................................11Table 5: Entitlement Matrix (Summary)..................................................11

List of Annexes

Annex 1: Project Screening Form.............................................KAnnex 2: Preliminary Environmental Information Sheet.........KAnnex 3: Status Quo of Preparation of District Land Use Plans

in the Project Area (provinces)...........................................KAnnex 4: Guidelines for site specific RAPS……………………………………………..Annex 5: Outline of a RAP…………………………………………………………….Annex 6: Summary of Main Issues from the Public

Participation/Consultation Process...................................11Annex 7: Procedures for Chance Find of Physical Cultural Resources…………………..Annex 8: Social Audit Document for the 400 ha of GAZEDA Land for the Nacala SEZ…..Annex 9: List of Contacts..........................................................KAnnex 10: Terms of Reference for the Formulation of the

ESMF, PMP and RPF...........................................................K

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EXECUTIVE SUMMARY

Introduction

The RPF outlines a number of principles to be adhered to in the implementation of the Integrated Growth Poles Project (Project), through which the World Bank (WB) will support the Government of Mozambique (GOM) strategy for inclusive and broad-based growth.

The focus of the support will be on the two main pillars of the Government’s Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; and (ii) employment through targeted interventions to strengthen the dynamism of the private sector to drive economic growth and accelerate job creation.

The project will be implemented in the (i) Zambeze Valley; (ii) Nacala Corridor, which due to a combination of factors are witnessing unprecedented growth fueled largely by mining (mainly coal) operations in Moatize (Tete province). Initial focus will be on two carefully selected growth poles, namely Angonia (comprising the districts of Angonia, Tsangano and Macanga districts in Tete province) and Nacala (Nacala Porto and Nacala-a-Velha city and town, respectively).

Figure 1: Overview of the Project Area (Zambezi Valley and Nacala Corridor)

In permanent and close consultation with the GOM the World Bank will ensure that the strategic interest of inclusion, diversification, creation of employment and income generating opportunities are created around the

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mega projects in the project area. Priority infrastructure will be identified, planned and built and training, capacity building and demonstration activities will be carried out. This will be complemented by the strengthening of the enabling environment as well as the adoption of adequate measures for intervention monitoring and evaluation.

Project Components

The project will have four main components with the following preliminary allocation of funds:

Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley (US$ 39.0 million): The objective of this component is to provide integrated support for the upgrading of targeted local infrastructure and privately-executed public investments primarily oriented towards increasing smallholder production, linking smallholder farms and MSMEs to emerging supply chains, and increasing agro-processing activities in the Zambezi Valley. The local infrastructure investments will focus on the districts of Angonia, Tsangano, and Macanga in Tete Province to upgrade two key rural roads linking agricultural areas to primary roads that will provide producers all weather access to markets. This component is subdivided into two subcomponents, namely: Sub-component 1A: Upgrading of local infrastructure (US$ 21.5 million) that will consist of the (A) Rehabilitation of Market Access Roads, and (B) Minor civil and ancillary works. Sub-component 1B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Zambezi Valley (IDA allocation: US$17.5 million, Total: US$35.0 million) to improve the ability of smallholder farms/MSMEs in the Zambezi Valley to access markets through market-oriented private and complementary public investments.

Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million): The objective of this component is to provide support for the development of the Nacala Corridor. Activities are focused on (a) upgrading last-mile infrastructure for the development of the Nacala SEZ (water supply system and an access road), and (b) supporting privately-executed public investments to increase smallholder production, link smallholder farms to emerging supply chains, and increase agro-processing activities. This components is also subdivided into two subcomponents: Sub-component 2A: Upgrading of Nacala SEZ physical infrastructure (US$ 30.5 million) and Sub-component 2B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Nacala Corridor (IDA allocation US$12.5 million, Total: US$25.0 million), with similar objectives and modality as those expressed for Sub-component 1B.

Component 3: Institutional Development and Capacity Building (US$10.0 million): The objective of this component is to provide multi-year support to key public agencies to strengthen their capacity to plan, coordinate and implement public and multilateral investment programs. At the National level the focus will be on building capacity of the newly

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established Department of Public Investments within MPD. At the Provincial level the capacity building activities will focus on ZVDA and GAZEDA with some support for the Provincial and Municipal authorities. The component will finance (i) Training, equipment and consultancies for planning, coordination and implementation of public investment programs, (ii) training, equipment and consultancies for the ZVDA and related public sector agencies in the Zambezi Valley, and (iii) training, equipment and consultancies for GAZEDA and related public sector agencies in the Nacala Corridor.

Component 4: Project Implementation (US$8.0 million): Investments under this component will support the operations of the PCU in MPD which includes two regional Project Managers co-located in ZVDA and GAZEDA to coordinate and support Project implementation. The component will support project implementation costs including: (i) PCU staff (ii) PCU operating costs, (iii) consultants for ANE to supplement contract supervision capacity, (iv) IDCF Fund Manager and initial project preparation costs, (v) training and consulting studies (vi) data collection, compilation and analysis and establishing a Project monitoring and evaluation system, (vii) safeguards management including training, preparation of RAPs, ESIAs and ESMPs and monitoring of implementation of safeguards instruments (viii) impact evaluation.

Physical interventions will be in the form of:

Roads, utilities, district/municipal facilities and logistics facilities including urban water supply (Nacala Porto);

Feeder roads Value-adding facilities for commercial agribusiness.

Project Formulation and Implementation Arrangements

A consultative and participatory process will be adopted in the identification and selection of specific and final sub-projects to be considered for funding. Among others the provinces and districts will review their strategic development plans and ensure that relevant plans and projects become part of the Project.

The ESMF basic principles and requirements will be applied throughout the entire project life cycle.

The project preparation is under the overall responsibility of MPD. A Steering Committee chaired by MPD and bringing together the main sectors involved in the Project (ZVDA, GAZEDA, MPD, MICOA, MTC, MOPH and MINAGRI) will assist in project management and ensure that relevant stakeholders participate in its management.

Development Context

The Project happens at a time when the Mozambican economy is recording accelerated growth rates, which are supported by high levels of assistance from Development Partners. The growth rates result from the efforts in the field of macroeconomic policy management and strengthening the enabling

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environment for promotion of domestic and foreign private investment. Economic growth has been driven by (i) foreign direct investment in mega projects and operating large-scale high-value agricultural products such as cotton, sugar and tobacco, (ii) the favorable agricultural growth, and (iii) infrastructure rehabilitation projects, including roads.

However, despite the remarkable growth, the country continues to be among the world's poorest. The country is in the 184th position among 187 countries in terms of human development index. A number of institutional and other constraints continue to hamper the delivery of basic social services.

The country’s economy is characterized by a very small number of mega projects on the one hand, and the family and informal sector, on the other, which encourages imbalances in development and affects diversification of production and access to the benefits of the development by a significant proportion of the population. Investments in infrastructure such as roads, water supply and sanitation, energy, telecommunications, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances. Strengthening micro, small and medium size enterprises (MSMEs) is seen as key to changing the prevalent situation.

The two regions that define the project area are rich and diverse in terms of the receiving physical, biological and socioeconomic environment. Interventions need to be adequately planned, implemented, monitored and evaluated to ensure that such environment is not adversely affected.

World Bank and GOM Safeguards Policies

The objective of the RPF, which is should be used in combination with the Project’s ESMF is to ensure that relevant World Bank Safeguards Policies and GOM environmental and social policies are strictly adhered to. The Project has triggered five of the World Bank’s 10+2 Safeguards Policies, namely, Environmental Assessment (OP/BP 4.01), Pest Management (OP 4.09), Involuntary Resettlement (OP/BP 4.12), Natural Habitats (OP/BP 4.04), Physical Cultural Resources (OP/BP 4.11), as well as the World Bank Group General Environmental, Health and Safety Guidelines (EHS), Tourism and Hospitality Development EHS Guidelines and the applicable Agribusiness/Food Production EHS Guidelines, as well as the Electric Transmission and Distribution EHS Guidelines from April 2007.

The Resettlement Policy Framework (RPF) will ensure that OP/BP 4.12 principles are embedded in project design and implementation. These can be summarized as follows: (i) involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs; (ii) resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; and (iii) displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation; whichever is

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higher. The WB also adopts a broader definition to the phenomenon of resettlement action under which it may include (i) loss of land or physical structures on the land, including business, (ii) the physical movement, and (iii) the economic rehabilitation of project affected persons (APs) in order to improve (or at least restore) the levels of income or life prevailing before the action causing the resettlement has taken place”.

Under WB and GOM environmental classification criteria, the project falls under Category B. There is enough evidence to the effect that it will not have significant resettlement implications. Where such will be unavoidable abbreviated resettlement action plans will suffice to deal with those implications.

The RPF is meant to be a guide to the screening of the proposed Project interventions to ensure that they do not negatively affect people and their assets in the project areas. It RPF is particularly relevant in a situation where there is still an unclear definition of the project interventions, as is the case with the project at this stage. The RPF outlines a number of principles, which include: (i) a full understanding of the project components, particularly those requiring land acquisition; (ii) public consultation and participation; (iii) determination of land use rights; (iv) screening of the project sites, resettlement sites and project activities; (v) property and asset valuation in line with specific resettlement action plans (RAPs); (vi) preparation and approval of resettlement action plans; (vii) implementation of the resettlement action plans; (viii) effective redress of complaints and grievances; (ix) mmonitoring of the Resettlement Action Plans or Abbreviated Resettlement Action Plans; and (x) a budget to ensure that the Project has adequate resources to meet its own interests in terms of involuntary resettlement. The RPF principles will be applied throughout the entire Project life cycle.

The Project will also be implemented in light of the GOM reform in the environmental sector in terms of: (a) adherence to and adoption of a series of international and regional environmental protection and conservation conventions and protocols; (b) approval of a significant set of legislation with direct and indirect implications for environmental protection; (c) creation of specific public institutions or strengthening of existing institutions dedicated to both environmental and social management.

Both WB and GOM policies and regulations will be applied to ensure that potential negative environmental and social impacts on land resources, soils, water resources, biodiversity, vegetation, local communities and the society at large are adequately managed and positive impacts are enhanced. In dealing with resettlement issues the recently approved Decree 31/2012 of August 8, will be given particular prominence.

Subproject Formulation and Selection

As part of the ESMF a social and environmental screening process will help (i) determine which construction or rehabilitation activities are likely to have potential negative environmental and/or social impacts; (ii) determine the level of environmental and social work required, including whether an ESIA/ESMP or a freestanding ESMP will be required or not; (iii) determine

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appropriate mitigation measures for addressing adverse impacts; (iv) incorporate mitigation measures into the subprojects financed by the Project; (v) indicate the need for the preparation of a Resettlement Action Plan (RAP), which would be prepared in line with this Resettlement Policy Framework (RPF); (vi) facilitate the review and approval of the construction and rehabilitation proposals; and (vii) provide guidance for monitoring environmental and social parameters during the implementation and operation of subproject activities.There will be a Safeguard Specialist to assist ZVDA and GAZEDA and the recruitment of a Communication Officer for the PCU based in Maputo. Among other these will be responsible for managing the resettlement implications of the Project. These staff will be trained by WB safeguards Specialists, in close collaboration with MICOA.

Training and Capacity Building

Extensive training and capacity building will be carried out in order to prepare institutions at the various levels to plan, implement, monitor and evaluate the different aspects involved in sound management of the project on land and asset expropriation.

Based on needs identification a specific institutional and human capacity building program for environmental and social management will be developed as part of the Project. Beneficiary institutions will be the Ministry for the Coordination of Environmental Affairs (MICOA), especially at its provincial and district levels, relevant line ministries at its provincial and district levels (e.g. agriculture, public works, energy, health, education, MMAS and MPD, etc.), including local authorities (e.g. municipalities and others such as CSOs). The details of the capacity-building program and the institutions, which will be supported and on which level: provincial or local, still has to be developed.

Practical ways of reaching all target groups will need to be devised for training and capacity needs assessments as well as for delivery of the training. The “Learning by Doing” approach will be given utmost priority.

Monitoring

Monitoring will also be fundamental to ensure that the objectives set forth in the RPF and the RAPs and ARAPs are being achieved satisfactorily and where there are nonconformities, timely corrective action can be taken. The Project Management Team, but especially the two safeguard specialists, will have the overall responsibility for coordinating and monitoring implementation of the RPF.

Estimated Budget

The total estimated cost for implementing the RPF including the preparation and implementation of the site specific RAPs is US$ 525,000.00 (five hundred twenty five thousand American dollars).

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SUMÁRIO EXECUTIVO

Introdução

O QPR descreve uma série de princípios que devem ser seguidos na implementação do Projecto Integrado de Pólos de Crescimento (PIPD), através do qual o Banco Mundial (BM) vai apoiar a estratégia do Governo de Moçambique (GOM) na promoção do crescimento inclusivo e de base alargada.

O enfoque do apoio será sobre os dois principais pilares do Plano de Acção para a Redução da Pobreza (PARP, 2011-14) (i) aumento da produção / produtividade agrária, (ii) aumento do emprego através de intervenções orientadas para fortalecer o dinamismo do sector privado para impulsionar o crescimento económico e acelerar a criação de emprego.

O projecto será implementado no (i) Vale do Zambeze, e (ii) Corredor de Nacala, . Devido a uma combinação de factores estas zonas do país estão a testemunhar crescimento sem precedentes que é impulsionado, em grande parte, pelas operações de mineração (principalmente do carvão) em Moatize (Tete). O enfoque inicial será sobre dois pólos de desenvolvimento seleccionados de forma cuidadosa, nomeadamente Angonia (compreendendo os distritos da Angónia, Tsangano e Macanga, na província de Tete) e Nacala (cidade de Nacala Porto e vila de Nacala-a-Velha, respectivamente).

Figura 1: A area do Projecto (Vale do Zambeze e Corredor de Nacala)

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Em consulta permanente e estreita com o GOM o Banco Mundial irá garantir que o interesse estratégico de inclusão, diversificação, criação de emprego e de oportunidades de geração de renda seja realizado em torno dos mega projectos na área do projecto. Infra-estruturas que sejam prioritárias serão identificadas, projectadas e construídas e vai haver actividades de formação, capacitação e demonstração. Isto será complementado pelo fortalecimento de um ambiente favorável, bem como a adopção de medidas adequadas para a monitoria e avaliação das intervenções.

Componentes do Projecto

O projecto terá quatro componentes principais, com a seguinte alocação preliminar de fundos:

Componente 1: Apoio ao Crescimento do Polo do Agronegócio na província de Tete, no Vale do Zambeze (EUA $ 39,0 milhões): O objectivo desta componente é o de fornecer apoio integrado para a melhoria da infra-estrutura local seleccionada e para a execução privada de investimentos públicos orientados sobretudo para aumentar a produção dos pequenos agricultores, ligando a agricultura familiar e o das MPMEs às cadeias de fornecimento/consumo emergentes assim como para aumentar as actividades de agro-processamento no Vale do Zambeze. Os investimentos em infra-estrutura local incidirão sobre os distritos de Angónia, Tsangano e Macanga, na Província de Tete, com vista a melhorar duas principais estradas rurais que ligam áreas agrícolas a estradas primárias e que darão aos produtores acesso aos mercados ao longo de todas as estações do ano. Esta componente está dividida em duas subcomponentes, nomeadamente: Sub-componente 1 Melhoramento da infra-estrutura local (EUA $ 21,5 milhões), que será composta por (A) Reabilitação de Estradas de Acesso ao Mercado, e (B) Pequenas obras públicas e de anexos. Sub-componente 1B: Fundo Catalítico de Inovação e Demonstração (FCID) sobre investimentos no Vale do Zambeze (alocação da IDA no valor de: EUA $ 17,5 milhões, total: EUA $ 35,0 milhões) para melhorar a capacidade dos pequenos agricultores/MPMEs no Vale do Zambeze para terem acesso aos mercados através de investimentos privados orientados para o mercado complementados por investimentos públicos.

Componente 2: Apoio à Nacala Zona Económica Especial (ZEE) no Corredor de Nacala (EUA $ 43,0 milhões): O objectivo desta componente éo de fornecer apoio para o desenvolvimento do Corredor de Nacala. As actividades da componente centram-se sobre (a) melhoramento da infra-estrutura para o desenvolvimento da ZEE de Nacala (sistema de abastecimento de água e uma estrada de acesso), e (b) apoiar a execução privada de investimentos públicos para aumentar a produção dos pequenos agricultores, ligar os pequenos agricultores às cadeias emergentes de fornecimento/consumo, e aumentar as actividades de agro-processamento. Esta componente também encontra-se subdividida em duas subcomponentes: Sub-componente 2A: Melhoramento da infra-estrutura física da ZEE de Nacala (EUA 30,5 milhões dólares americanos) e Sub-componente 2B: Fundo Catalítico de Inovação e Demonstração (FCID) sobre investimentos no Corredor de Nacala (alocação da IDA no valor de EUA $ 12,5 milhões, Total: EUA $ 25,0

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milhões), com objectivos e modalidade semelhantes ao que foi especificado na Sub-componente 1B.

Componente 3: Desenvolvimento e Capacitação Institucional (EUA $ 10,0 milhões): O objectivo desta componente é o de fornecer apoio multi-anual aos principais órgãos públicos para reforçar a sua capacidade de planificar, coordenar e executar programas de investimento público e multilaterais. Ao nível nacional, o foco será na capacitação do recém-criado Departamento de Investimentos Públicos dentro do MPD. Ao nível provincial as actividades de capacitação vão centrar-se sobre a ADVZ e o GAZEDA com algum apoio às autoridades provinciais e municipais. A componente financiará (i) equipamentos, formação e consultorias para a planificação, coordenação e implementação de programas de investimento público, (ii) equipamentos, formação e consultorias para o ADVZ e outras agências do sector público no Vale do Zambeze, e (iii) a formação, equipamentos e consultorias para o GAZEDA e outras agências do setor público no Corredor de Nacala.

Componente 4: Implementação do Projecto (EUA $ 8,0 milhões): Os investimentos no âmbito desta componente serão para apoiar as operações da UCP no MPD o que inclui dois gestores de projectos regionais localizados, respecivamente, na ADVZ e no GAZEDA para coordenar e apoiar a implementação do projecto. AO componente irá sapoiar os custos de implementação do projecto, incluindo: (i) Pessoal da UCP (ii) Custos operacionais da UCP, (iii) Consultores para a ANE para complementar a capacidade de supervisão dos contratos, (iv) Gestor do Fundo da FCID e custos de preparação inicial do projecto, (v) a formação e estudos de consultoria (vi) recolha, compilação e análise de dados e estabelecer um sistema de monitoria e de avaliação do projecto, (vii) as garantias de gestão, incluindo a formação, preparação de PARs, EIASs e PGASs e acompanhamento da implementação dos instrumentos de salvaguarda, e para (viii) a avaliação de impacto.

As intervenções físicas serão sob a forma de:

Estradas, equipamentos, instalações e facilidades logísticas distritais/municipais, incluindo fornecimento de água urabana (Nacala Porto);

Estradas vicinais; Facilidades de adicionamento de valor para o agronegócio.

Arranjos para a Formulação e Implementação do Projecto

Será adoptado um processo consultivo e participativo na identificação e selecção de projectos concretos e finais a serem considerados para financiamento. Entre outros, as províncias e distritos irão rever os seus planos estratégicos de desenvolvimento e garantir que os seus planos e projectos se tornem em parte do Projecto.

Os princípios e requisitos básicos do QPR serão aplicado durante todo o ciclo de vida do Projecto.

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A preparação do projecto está sobre a responsabilidade geral do MPD. Será formado um Comité de Gstão do Projecto dirigido pelo MPD e que reunirá os principais actores envolvidos com o PROJECTO (ZVDA, GAZEDA, MPD, MICOA, MTC, MOPH and MINAGRI) que irá apoiar na gestão do projecto e garantir que as partes envolvidas curciais paraticipam na sua gestão.

Contexto de Desenvolvimento

O Projecto acontece numa altura em que a economia moçambicana está a registar taxas de crescimento aceleradas, que são apoiadas por altos níveis de assistência dos Parceiros de Desenvolvimento. As taxas de crescimento são resultado dos esforços no domínio da gestão da política macroeconómica e do fortalecimento do ambiente propício para a promoção do investimento privado nacional e estrangeiro. O crescimento económico tem sido impulsionado por (i) investimento directo estrangeiro em mega projectos e que operam em larga escala em produtos de alto valor agrícola tais como açúcar, algodão e tabaco, (ii) o crescimento agrícola favorável, e (iii) projectos de reabilitação de infra-estrutura, incluindo estradas.

No entanto, apesar do crescimento notável, o país continua a estar entre os mais pobres do mundo. O país está na posição 184 entre 187 países em termos de índice de desenvolvimento humano. Existe uma série de constrangimentos institucionais e outras restrições que continuam a dificultar a prestação de serviços básicos.

A economia do país é caracterizada por um número muito reduzido de grandes projectos, por um lado, e o sector familiar e informal, por outro, o que encoraja desequilíbrios no desenvolvimento e afecta a diversificação da produção e o acesso aos benefícios do desenvolvimento por uma significativa proporção da população. Investimentos em infra-estrutura, como estradas, abastecimento de água e saneamento, energia, telecomunicações, etc. devem continuar a desempenhar um papel neste processo de estabilização e eliminação gradual dos desequilíbrios. Reforçar as pequenas e médias empresas (PME) é visto como chave para mudar a situação prevalecente.

As duas regiões que definem a área do projecto são ricas e diversificadas em termos do ambiente físico, biológico e socioeconómico receptor. As intervenções precisam de ser adequadamente planificadas, implementadas, monitoradas e avaliadas para garantir que o ambiente receptor não seja prejudicado.

Políticas de Salvaguardas do Banco Mundial e Regulamentos do GOM

O objetivo do QPR, que deve ser usado em combinação com o QGSA do Projecto é o de garantir que as Políticas de Salvaguarda ambientais e sociais relevantes do Banco Mundial e do GOM sejam rigorosamente respeitadas. O Projecto irá desencadear cinco das 10+2 Políticas de Salvaguarda do Banco Mundial, nomeadamente, Avaliação Ambiental (OP / BP 4.01), Gestão de Pragas (OP 4.09), Reassentamento Involuntário (OP / BP 4.12), Habitats Naturais (OP/BP 4.04), Recursos Físico Culturais (OP/BP 4.11), assim como as Directrizes do Grupo do Banco Mundial sobre o

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Ambiente, Saúde e Segurança Gerais, Desenvolvimento do Turismo, Directrizes de SSA aplicáveis ao Agribusiness/Produção de Alimentos, de Abril de 2007.

O Quadro de Política de Reassentamento (QPR) destina-se a garantir que princípios da OP / BP 4.12 sejam considerados no desenho e implementação do projeto.

Estes princípios podem ser resumidos da seguinte forma: (i) reassentamento deve ser evitado sempre que possível, ou ele deve ser minimizado, explorando todas as vias alternativas no desenho do projecto; (ii) quando não for possível evitar o reassentamento, as suas actividades devem ser concebidas e executadas como programas de desenvolvimento sustentável, fornecendo recursos de investimento suficientes para permitir que as pessoas deslocadas pelo projecto possam compartilhar os benefícios decorrentes do projecto; (iii) as pessoas deslocadas devem ser consultadas de forma significativa e ter oportunidades de participar na planificação e implementação de programas de reassentamento; e (iv) as pessoas deslocadas devem ser auxiliadas nos seus esforços para melhorar os seus meios e padrões de vida ou pelo menos para repô-los, em termos reais, a níveis prevalecentes antes do reassentamento ou aos níveis existentes antes do início da implementação do projecto, dependendo, neste caso, do que for melhor entre estas duas fasesO BM também adopta uma definição mais ampla do fenômeno de ação de reassentamento em que o mesmo pode incluir: (i) a perda de terra ou de estruturas físicas sobre a terra, incluindo as emprendimentos, (ii) o movimento físico, e (iii) a reabilitação económica das pessoas afetadas (APs) pelo projecto a fim de melhorar (ou pelo menos, restaurar) os níveis de rendimento ou de vida existente antes da acção que provocou o reassentamento.

Ao abrigo dos critérios de classificação ambiental do BM e do GOM, o projecto enquadra-se na Categoria B. Há evidência suficiente para o facto de que o mesmo não terá implicações significativas de reassentamento. Quando tal se apresentar inevitável planos de acção de reassentamento simplificados deverão ser suficientes para lidar com essas implicações.

O QPR pretende ser um guia para a selecção das intervenções do projecto proposto para garantir que eles não afectem negativamente as pessoas e os seus bens nas áreas do projecto. O QPR é particularmente relevante numa situação em que ainda não existe uma definição clara das intervenções do projecto, como é o caso do que se passa com o projecto nesta fase. O QPRapresenta uma série de princípios, que incluem: (i) uma compreensão abrangente das componentes do projecto, especialmente os que necessitam de expropriação, (ii) a consulta e participação pública, (iii) a determinação dos direitos de uso da terra, (iv) revisão dos locais dos projectos e actividades de reassentamento do projecto; (v) a avaliação de activos em conformidade com os planos de acção de reassentamento (PAR) específicos, (vi) a elaboração e aprovação de planos de ação de reassentamento, (vii) a implementação dos planos de acção de reassentamento; (viii) o tratamento efectivo de queixas e reclamações; (ix) a monitoria dos Planos de Acção de Reassentamento ou Planos de Ação de Reassentamento Simplificados, e (x) um orçamento para garantir que o projecto tenha recursos suficientes para atender aos seus próprios

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interesses em termos de reassentamento involuntário. Os princípios do QPR serão aplicados em todo o ciclo da vida do projecto

O QPR também será implementado à luz da reforma do GOM no sector do ambiente, em termos de: (a) adesão e adopção de uma série de convenções e protocolos regionais e internacionais de protecção ambiental e de conservação; (b) aprovação de um conjunto significativo de legislação com implicações directas e indirectas sobre a protecção ambiental; (c) criação de instituições públicas específicas ou fortalecimento de instituições existentes dedicadas à gestão ambiental e social.

Tanto as políticas do Banco Mundial como as políticas e regulamentos do GOM serão aplicados para garantir que o potencial de afectar negativamente os recursos terrestres, solos, recursos hídricos, da vegetação e da sociedade em geral seja adequadamente gerido e os impactos positivos sejam realçados. Ao lidar com as questões do reassentamento o recém aprovado Decreto 31/2012 de 8 de Agosto receberá atenção especial.

Formulação e Selecção de Subprojectos

Como parte do QGSA haverá um processo de selecção para (i) determinar que actividades de construção e reabilitação são susceptíveis de ter potenciais impactos ambientais e sociais, (ii) determinar o nível de acção ambiental necessária, incluindo se uma AIAS/PGAS ou apenas um simples PGAS são necessários ou não, (iii ) determinar as medidas de mitigação apropriadas para lidar com os impactos adversos, (iv) incorporar medidas de mitigação nos subprojectos financiados pelo PPID, (v) indicar a necessidade de preparação de um Plano de Acção de Reassentamento (RAP), que será elaborado em conformidade com o presente Quadro da Política de Reassentamento (QPR), (vi) facilitar a revisão e aprovação da construção e propostas de reabilitação, e (vii) fornecer orientações para o monitoramento de parâmetros ambientais durante a implementação e funcionamento das actividades dos subprojectos.

Haverá um especialista de salvaguarda para ajudar a ZVDA e o GAZEDA e o recrutamento de um oficial de comunicação da UCP com sede em Maputo. Entre outros estes serão responsáveis por gerir as implicações de reassentamento do Projecto. Este pessoal vai ser formado por especialistas de salvaguarda do BM em estreita colaboração com o MICOA.

Formação e Capacitação

Haverá extensa formação e capacitação a fim de preparar as instituições aos diferentes níveis para planificar, implementar, monitorar e avaliar os diferentes aspectos envolvidos na gestão da expropriaçao de activos de das pessoas afectadas tal como descrito neste QPR.

Com base na identificação das necessidades de formação será desenvolvido um programa específico de fortalecimento institucional e humano e da capacidade de gestão ambiental e social como parte do Projecto. As instituições beneficiárias serão o Ministério para a Coordenação da Acção Ambiental (MICOA), particularmente aos níveis provincial e distrital, os

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ministérios relevantes (por exemplo, agricultura, obras públicas, energia, recursos minerais, saúde, educação, MMAS e MPD, etc), incluindo autoridades locais (municípios por exemplo, e outros, como OSC). Os detalhes do programa de capacitação e as instituições que serão apoiadas e a que nível: provincial ou local, ainda terão que ser desenvolvidos.

Deverõ ser elaboradas formas práticas de atingir todos os grupos-alvo para a avaliação das necessidades de formação e capacitação, bem como para a realização da formação. Será dada prioridade à abordagem de “aprender a fazer fazendo”.

Monitoria

A monitoria também será fundamental para garantir que os objectivos estabelecidos no QPR e nos PARs sejam alcançados de forma satisfatória e onde não houver conformidade para que se possa, em tempo útil, introduzir alterações. A Equipa de Gestão do Projecto terá a responsabilidade geral pela coordenação e acompanhamento da execução do QPR.

Estimação do Orçamento do QPR

O custo total estimado para a implementação do QPR e a preparação e execução dos PARs é de EUA $ 525,000.00 (quinhentos e vinte e cinco mil dólares norte-americanos).

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1 INTRODCUTION

The purpose of this document is to provide a Resettlement Policy Framework (RPF) for the proposed Integrated Growth Poles Project (Project), through which the World Bank (WB) will support the Government of Mozambique (GOM) strategy for inclusive and broad-based growth. The focus of the support will be on the two main pillars of the Governments Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; (ii) employment through targeted interventions to strengthen the dynamism of the private sector to drive economic growth and accelerate job creation.

The project will be implemented over a period of 6years and it is expected that it will contribute significantly to meeting important development objectives embraced by the GOM in terms of diversifying the economy and making it more inclusive. This will be fundamental in a context in which it is increasingly acknowledged that the country’s economy is becoming polarized by having some big enterprises on one hand and a wide number of informal SMEs, mostly micro enterprises, on the other hand. This fuels imbalances in development and hampers access to the benefits of the development by a significant proportion of the population1. Significant investments in infrastructure such as roads, water supply and sanitation, electricity, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances as should the creation of a business environment in which SMEs can become competitive, grow and diversify.

The geographical area selected for implementing the Project, namely the (i) Zambeze Valley; and (ii) Nacala Corridor. The provinces and districts in these two areas and particularly Tete and Nampula provinces are witnessing unprecedented growth fueled largely by mining (mainly coal) operations in Moatize (Tete province). Plans to transport coal from Moatize to Nacala after crossing successively parts of Tete province (Moatize), Malawi and the districts of Niassa and Nampula provinces within the Nacala Corridor are at an advanced stage. 2015 may witness the circulation of the first trains transporting coal from the origin in Moatize to the export point in Nacala-a-Velha port. Other similar operations are planned to follow suit by other investors in coal mining. These will place the Zambeze Valley and parts of the Nacala Corridor and other adjacent areas (e.g. the provinces of Tete, Zambezia, Niassa and Cabo Delgado) in a situation never seen before in terms of coal related mega operations.

If concrete measures are not adopted and put in place it is not only an opportunity of using mega developments as anchors for overall socioeconomic development that will be missed, but also these developments in themselves will possibly exacerbate the existing imbalances in the country’s economy. Thus, the Project comes at a right time.

In permanent and close consultation with the GOM the World Bank will ensure that the strategic interest of inclusion, diversification, creation of

1 Carlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008.

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employment and income generating opportunities are built around the mega projects in the project area. Priority infrastructure will be identified, planned and built and training, capacity building and demonstration activities in support to the private sector will be carried out. This will be complemented by the strengthening of the enabling environment as well as the adoption of adequate measures for intervention monitoring and evaluation, drawing lessons learned and improve the interventions at hand as well as apply them in other relevant areas across the country.

Infrastructure development (e.g. roads, feeder roads, urban water supply, power generation/distribution facilities, etc.) in particular but also other interventions will have positive and negative implications on the receiving natural and socioeconomic environment. Among other, they will require land taking and people and/or their assets to be involuntarily resettled, which can impact negatively on people’s livelihoods. Both the WB and the GOM, advocate that involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

The GOM and the WB also adopt a broader view on involuntary resettlement, which is seen as including (i) loss of land or physical structures on the land, including business, (ii) the physical movement, and (iii) the economic rehabilitation of project affected persons (PAPs) in order to improve (or at least restore) the levels of income or life prevailing before the action causing the resettlement has taken place”.

In line with the GOM and WB principles and guidelines related with environmental and social management interventions should be designed, implemented and operated in such a way as to avoid causing harm to both the natural and social environment.

The Resettlement Policy Framework (RPF) is meant to be a guide to the overall management of the proposed Project interventions to ensure that they do not negatively affect people and their assets in the project areas. The RPF covers the entire project and subproject cycle. It provides the principles and prerogatives the Borrower should follow in project ad subproject management to ensure compliance with the WB policies. The RPF is particularly relevant in a situation where the selected project interventions have not yet undergone the respective feasibility studies and design, as is the case with the Project at this stage. The RPF outlines a number of principles, which include:

A full understanding of the project components, particularly those requiring land acquisition;

Public consultation and participation; Determination of land use rights; Screening of the project sites, resettlement sites and project activities; Property and asset valuation in line with specific resettlement action

plans (RAPs);

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Preparation and approval of resettlement action plans; Implementation of the resettlement action plans; Effective redress of complaints and grievances; Monitoring of the Resettlement Action Plans for implementation of

mitigation measures; and A budget to ensure that the Project has adequate resources to meet its

own interests in terms of involuntary resettlement.

The RPF principles will be applied throughout the entire project life cycle.

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2 PROJECT DESCRIPTION

The Integrated Growth Poles Project (PROJECT) intends to support the government’s strategy for inclusive and broad-based growth. Focus will be on the three main pillars of the Governments Poverty Reduction Plan/Plano de Acção de Redução da Pobreza (PARP, 2011-14)2 (i) increasing production and productivity in agriculture and fisheries; (ii) promoting employment; and (iii) fostering human and social development. Two supporting pillars will focus on fostering good governance and preserving macroeconomic stability. The proposed growth poles project will contribute towards supporting two of the main pillars through targeted interventions to strengthen the private sector and drive both economic growth and job creation.

The project will have four main components with the following preliminary allocation of funds:

1. Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley (US$ 39.0 million)

2. Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million)

3. Component 3: Institutional Development and Capacity Building (US$10.0 million)

4. Component 4: Project Implementation (US$8.0 million)

2.1 Project Development Objectives and Principles

The Project Development Objectives (PDO) are to improve the performance of local enterprises and smallholder farms in the Zambezi Valley and Nacala Corridor and particularly in the provinces of Tete and Nampula. It intends to support selective, targeted, integrated interventions in Tete and Nampula to improve the business environment, improve access to infrastructure and skills and strengthen the capacity of both public sector institutions and the domestic private sector to test and monitor and evaluate practical solutions in the implementation of the relevant SME development strategy.

2.2 Project Components The Project will include the following four components with preliminary respective estimates of fund allocations:

Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley (US$ 39.0 million)

The objective of this component is to provide integrated support for the upgrading of targeted local infrastructure and privately-executed public investments primarily oriented towards increasing smallholder production, linking smallholder farms and MSMEs to emerging supply chains, and increasing agro-processing activities in the Zambezi Valley. The local

2 CM (Maio 2011) “Plano de Acção para a Redução da Pobreza (PARP) 2011-2014 – Aprovado na 15ª Sessão Ordinária do Conselho de Ministros de 3 de Maio de 2011”, Maputo, Moçambique

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infrastructure investments will focus on the districts of Angonia, Tsangano, and Macanga in Tete Province to upgrade two key rural roads linking agricultural areas to primary roads that will provide producers all weather access to markets. The support for privately-executed public investments will be through the Innovation and Demonstration Catalytic Fund (IDCF) which will be targeted at scaling up existing investments (and attracting new investments) in outgrower type schemes, skills and vocational training and business linkages between MSMEs and large enterprises. The two sub-components are (a) upgrading of local infrastructure, and (b) Innovation and Demonstration Catalytic Fund (IDCF)

Sub-component 1A: Upgrading of local infrastructure (US$ 21.5 million)

A) Rehabilitation of Market Access Roads (US$ 20.0 million).

The Tete Provincial Roads Strategy highlights roads N303, N322, R605, N302, R603/604 and R605 as being priority roads for investment and maintenance3.The MPD and ZVDA have further prioritized roads R605, R604 and N302 because of the high population concentration around these roads and the significant constraints on agricultural production; and the technical and economic assessment of upgrading R605, R604 and N302 concluded that upgrading R605 and R604 would lead to the maximum economic benefits. The project will finance the upgrading of market access roads, with a particular focus on the feasibility of R604, R605, and N302. Emergency works to rehabilitate the roads have been going on for some time, and ANE has been following Bank guidelines for their environmental and social management; the EMP will be updated to include additional mitigation measures once the sites and works have been finalized.

This sub-component will be implemented by the Fundo de Estradas (FE)/ANE through a Project Agreement with FE as the implementing agency and a sub-loan agreement between the FE and the MPD. A Designated Account will be opened by FE in a commercial bank. The responsibility for project implementation will be with the FE (as the legally autonomous entity for managing the collection and disbursement of road sector funds) while planning and implementation of the road works will be the responsibility of ANE. Responsibility for procurement, disbursement and management of the roads contracts financed under the Project will be with ANE. Disbursements from IDA will be made on the basis of incurred eligible expenditures. IDA would then make advance disbursements of the credit by making deposits into the FE Designated Account. The project implementing agency will submit quarterly progress reports to the PCU which, will, semi-annually evaluate the agencies performance against agreed targets. The fiduciary, safeguard, and monitoring and evaluation systems used will be the ones used by the agency and acceptable to the World Bank. The Project will also provide additional resources to supplement ANE’s capacity for project supervision and performance monitoring.3 Details can be seen in the Provincial Roads Strategy for Tete Province, commissioned by the Provincial Government in 2010, with the participation of District Administrations, ANE headquarters and Tete delegation, the Fundo de Estradas, and a consultant from DFID. Província de Tete (2010) ‘Estratégia de Estradas’, November 2010.

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In order to promote greater local participation and employment as well as establish capacity for sustained road maintenance beyond the Project duration, the FE/ANE are expected to bundle the road rehabilitation and maintenance works under a single contract with disbursements for maintenance made according to established performance-based criteria.4 The contract is expected to be an output and performance based road contract (OPRC) that is awarded through a competitive selection process that compares fixed lump-sum prices for bringing a road to a certain service level and then maintaining it at that level for a specified period. The monthly lump-sum remuneration for the contractor will cover all physical and non-physical maintenance services except for unforeseen emergency works, which will be remunerated separately. In addition to the above, the contract is also expected to stipulate that routine maintenance works must be sub-contracted to local maintenance brigades (Micro Empresas Rurais Associativas) that are organized and trained by the primary contractor. This arrangement will provide a single point of contact that will facilitate supervision and performance monitoring as well as align incentives between the contractor and the Government that is expected to reduce the administrative costs of performance monitoring.5

(B) Minor civil and ancillary works

Activities financed under this sub-component will include repair and rehabilitation of office buildings including those of the ZVDA as well as upgrading of electricity, water and sanitation facilities for these buildings. These activities will be implemented by the PCU in collaboration with the ZVDA.

Sub-component 1B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Zambezi Valley (IDA allocation: US$17.5 million, Total: US$35.0 million)

The objective of the Innovation and Demonstration Catalytic Fund (IDCF) is to improve the ability of smallholder farms/MSMEs in the Zambezi Valley to access markets through market-oriented private and complementary public investments. The IDCF investments will have a catalytic role, demonstrating the incremental returns that can be achieved through access to technology and markets. The IDCF will therefore support linkages between medium and large firms and smallholder farms/MSMEs through targeted investments in public goods and services6 that will be executed by the private sector.

The current market failures that are preventing smallholder farmers/MSMEs to access markets require a group of interventions that cannot be addressed with a traditional matching grant approach that 4 Based on Procurement of Works and Services under Output- and Performance-based Road Contracts and Sample Specifications, World Bank (2006).5 Based on the experience of the World Bank Infrastructure Services Project in Malawi, the administrative costs of performance monitoring were reduced from about 30% of contract value for community contracting to about 10% under this indirect community contracting model6 Examples of public good and services include demonstration centers, warehouses, packing houses, grading centers, cold storage, mechanization, certification, and training.

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provides just technical assistance. In this case, there is a significant requirement for a package of works, goods and services which have a public nature, such as extension services, warehouses, demonstration and training centers, and certification providers. The public sector has traditionally provided such infrastructure, goods and services. However, due to information asymmetries, the public sector does not have adequate access to the information required to provide the type of infrastructure, goods, and services. Examples of this include the limited coverage of extension services, and the construction of processing centers that do not have the required demand by the private sector. Therefore, under the IDCF, the implementation of such investments will be carried out by private entities with market-knowledge and by public entities in collaboration with the private sector. Specific eligibility criteria for project proposals have been prepared and are presented as an Annex of the Project Document.

The IDCF will be demand-driven and allocations will be made through a competitive selection process based on demonstrated evidence of benefits to smallholder farms and MSMEs through business linkages. Two types of business linkages will be supported under this sub-component:

1. Linking smallholder farms to agribusiness value chains: The objective of the IDCF is to catalyze business models where individual smallholder farmers or farmer associations partner with agribusiness firms to access existing or new markets. A typical qualifying investment for IDCF support would have a significant farm outreach component with the estimated value of direct support to farm households of at least 50 percent of the total investment. The direct involvement of farmers needs to be an essential part of the commercial partnership for eligibility of IDCF support. The IDCF investments are expected to increase the number of smallholder farmers who are able to enter the new and demanding markets in the Zambezi Valley and Nacala Corridor. An example of this partnership is the supply of fruits and vegetables to the catering companies that serve the mining sector in Tete. The marketing of the horticultural products can only be done through an organization that understands the demand and is able to aggregate the products as there is a certain minimum scale of production. Consequently, the current demand is being supplied by imports from places such as a South Africa and Brazil. Nonetheless, at the moment mining companies (e.g. Rio Tinto) are expressing interest to underwrite purchasing contracts for locally-sourced food, which can lead in the long run to access to better quality products at potentially lower prices. In this regard, the districts of Angonia and Tsangano have tremendous potential to supply the catering companies that serve the mining sector, but farmers cannot achieve the economies of scale, nor have access to the technology required to produce the type and quantity of product required to enter the mining value chain. The IDCF will support investment proposals, where agribusinesses together with farmers develop mutually commercially attractive agreements for the production and commercialization of high quality farm products, with the agribusiness investor expected to perform the marketing role in partnership with the farmers. Examples of supported activities are outgrower schemes, packing

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houses, grading centers, processing, warehouses, and cold storage facilities. These investments will be implemented by the private agribusiness firm under a contractual arrangement with the IDCF Manager. Each IDCF investment is expected to range in cost from approximately $500,000 to $1,500,000, which will include investments in infrastructure, equipment and services.

2. Linking MSMEs to the mining value chains: The objective of the IDCF here is to catalyze partnerships between private and public service providers and MSMEs to access existing and new market opportunities emerging from the large investments. The IDCF investments are expected to increase the number of MSMEs that are able to provide services as sub-contractors or vendors to Tier 1 or Tier 2 suppliers to the large investors. The investments are also expected to increase the number of skilled workers and the range of skills available in the local labor market. Lessons from linkages programs point out to the strength that can be gained when both the public and private sectors are involved (Pan American Energy, Argentina), with the public sector taking a vital role in facilitating partnerships in strategically important sectors (UNIDO-Microsoft partnership), and that successful examples can motivate and inspire (Unilever, Kenya)7. As an example, mining companies such as a Vale and Rio Tinto have strict quality, health safety and environment (HSE) standards, which local vendors need to comply with8. In this case, Tier 1 and Tier 2 suppliers as well as public and/or private service providers who are able and willing to provide the required training and certification of local MSMEs would be eligible for IDCF support. Examples of typical activities are the establishment of training centers and skills programs and quality certification programs. The IDCF investments will support a private service provider, or a public institution that demonstrates a partnership with the private sector or international service provider to deliver these services. This is to ensure that public sector proposals are market-tested and meet the immediate requirements of the local economy as well as the services provided are of acceptable quality. Each subproject is expected to range in cost from approximately $300,000 to $900,000, which will include investments in infrastructure, equipment and services.

Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million)

The objective of this component is to provide support for the development of the Nacala Corridor. Activities are focused on (a) upgrading last-mile

7 Jenkings et al. (2007). Business Linkages: Lessons, Opportunities, and Challenges. 8 In the case of Mozal, the SME Empowerment Linkages Program trained local SMEs to enable them to bid, win, and deliver on construction contracts that met Mozal standards. This was followed by MozLink with the objective to develop the SMEs’ capacity to a level where the local company is competitive and qualifies to bid for work with Mozal as well as other large companies. The results include an increase in local procurement from 40 to 250 companies (from 2002 to 2007) with annual local purchasing increasing from $5 million to $13 million (from 2001 to 2005). The performance of SMEs in the areas of quality, management, maintenance, and safety improved on average by 20 percent.

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infrastructure for the development of the Nacala SEZ (water supply system and an access road), and (b) supporting privately-executed public investments to increase smallholder production, link smallholder farms to emerging supply chains, and increase agro-processing activities. The infrastructure investments are critical to improve the performance of existing businesses and attract new investors to the SEZ. The support for privately-executed public investments will be through the Innovation and Demonstration Catalytic Fund (IDCF) which will be targeted primarily at scaling up existing investments (and attracting new investments) in outgrower type schemes and skills and vocational training in the Nacala Corridor.

Sub-component 2A: Upgrading of Nacala SEZ physical infrastructure (US$ 30.5 million)

a. Expansion of water supply (US$ 24.5 million).

Expansion of water supply capacity to Nacala is critical for the success of the Nacala SEZ. The current water supply infrastructure is insufficient to meet current demand leading to severe water shortages. The existing water supply system in Nacala consists of approximately 74.6kms of network pipelines with 7,705 connections. The main water source is from the Muecula dam with the Mpaco and Mutuzi well fields supplementing this supply. However, the total coverage is low, with less than 55% of the city’s population having access to the water supply system and production from the source is limited, providing a constraint to further expansion efforts. The Project investments under this sub-component will expand both production capacity and the distribution network in Nacala, which is anticipated to increase supply to the SEZ by about 3,000 m3/day. In addition, there will be a substantial increase in supply for the local population.

The investments to be financed under this Project are an integral part of the wider investment program under the World Bank-financed 'Water Services and Institutional Support (WASIS) Project as follows:

i. Wells Field Development. This will consist of the drilling of boreholes in the existing M’Paco and Mutuzi well fields to be equipped with submersible pumps, pipe work, fittings required to connect the boreholes to the transmission main, electrical equipment, and electrical connections.

ii. Transmission Lines. The transmission mains will connect the M’paco and Mutuzi well fields to the distributions' centers. It is estimated that the length will be about 20 km and the diameter no greater than 400 mm. The exact diameters and lengths will be determined after the confirmation of the total flow from each well field at the end of the drilling and testing. The material to be used is ductile iron except if any unusual substance may be found in the water from the well fields.

iii. Distribution Centers. The existing Distribution Centers in Nacala require rehabilitation and new Distribution Centers are required as part of the works to supply water to the higher zones and to accommodate the additional water supply. The capacity and location of the Distribution Centers will be confirmed after the confirmation

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of the total flow from each well field at the end of the drilling and testing.

iv. Distribution Networks. Some of the depleted existing network needs to be replaced and the connections transferred to the new lines in order to reduce water losses. About 110 km of PVC pipe, ranging from 50mm to 400 mm diameter, will be required to extend the network and replace the above-mentioned sections. Some 26,000 water meters will be procured for additional connections.

v. Consultant Services. Consultant services will be required to identify the most viable long term source and to prepare bidding documents for construction. Consultant services will also be required for the supervision of the construction of the three projects for Transmission Lines, Distribution Networks as well as the Distribution Centers and Reservoirs. It is expected that there will be two supervision contracts: for the transmission/reservoirs and for the distribution network.

These investments are forecast to satisfy medium-term demand from Nacala until approximately 2017, after which a longer term supply source will need to be found. According to the Baker Report of 20069, water demand in Nacala will exceed supply capacity of 35,000 m3/day by around 2017. Medium-term solutions may include a desalination plant, which is more expensive per unit, but provides a guaranteed supply, and can be deployed in short period of time. A study on long-term water supply options will be financed under this project to assess the feasibility of new potential sources of water supply. The study may consider the dam sites, a desalination plant, the new wells fields identified in the Additional Groundwater Investigations, Nacala Report for Aquifer Assessment (Burnside August 2011), and other potential options. The preparation of this study will assist FIPAG to plan for further developments in Nacala and will help to provide reassurances to the private sector that additional demand requirements are being planned for and will be met.

The national water agency, FIPAG, will be responsible for the procurement, disbursement and management of the contracts financed under this sub-component. There will be a specific Project Agreement signed by FIPAG and a sub-loan agreement signed between FIPAG and the Government. A Designated Account will be opened by FIPAG in a commercial bank. FIPAG is the legally autonomous agency, which since its establishment in 1998 has been directly involved with the implementation of a large number of projects financed by the World Bank and other development partners. The fiduciary, safeguards, and monitoring and evaluation systems used by FIPAG are integral parts of the agency and are acceptable to the World Bank. The project will be implemented by FIPAG staff implementing the WASIS project. Disbursements from IDA will be made on the basis of incurred eligible expenditures/transaction-based disbursements. IDA would then make advance disbursements of the Credit by making deposits into the FIPAG Designated Account. FIPAG will submit quarterly progress reports to the PCU, which will semi-annually evaluate FIPAG’s performance against agreed targets.9 Baker (2006), ‘Nacala Dam and Reservoir Revised Technical Review and Interim Report’, October 1st, 2006. Report prepared by Michael Baker Jr, Inc as part of the Millennium Challenge Corporation (MCC) Mozambique Water & Sanitation Project for the Transatlantic Programs Centre US Army Corps of Engineers.

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b. Rehabilitation of Nacala Porto – Nacala-a-Velha link road (R702) and bridges (US$ 5.5 million).

The project will examine the feasibility of rehabilitating Road R702, which is a critical access road linking the Nacala port and city (Nacala Porto) with the new port and heavy industrial area (Nacala-a-Velha). Emergency works to rehabilitate the road have been going on for some time, and ANE has been following Bank guidelines for their environmental and social management. The EMP will be updated to include additional mitigation measures once the sites and works on this road have been finalized.

c. Minor civil and ancillary works (US$0.5 million).

Activities financed under this sub-component will include repair and rehabilitation of office buildings including those of the Nacala Municipality as well as upgrading of electricity, water, ICT and sanitation facilities for these buildings as well as site demarcation and fencing of industrial plots for the Nacala SEZ. These activities will be implemented by the PCU in collaboration with GAZEDA and Provincial authorities.

Sub-component 2B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Nacala Corridor (IDA allocation US$12.5 million, Total: US$25.0 million)

The objectives and modality of the IDCF in the Nacala Corridor are similar to that in Sub-component 1B. As mentioned earlier, the same Fund Manager will manage the IDCF in both the Zambezi Valley and Nacala Corridor.

Component 3: Institutional Development and Capacity Building (US$10.0 million)

The objective of this component is to provide multi-year support to key public agencies to strengthen their capacity to plan, coordinate and implement public and multilateral investment programs. At the National level the focus will be on building capacity of the newly established Department of Public Investments within MPD. At the Provincial level the capacity building activities will focus on ZVDA and GAZEDA with some support for the Provincial and Municipal authorities. Specific activities that will be financed under this component include: (i) Training, equipment and consultancies for planning, coordination and implementation of public investment programs, (ii) training, equipment and consultancies for the ZVDA and related public sector agencies in the Zambezi Valley, and (iii) training, equipment and consultancies for GAZEDA and related public sector agencies in the Nacala Corridor.

Sub-Component 3A: Strengthening capacity for planning, coordination and implementation of public investment programs under MPD (US$3.0 million). The current public investment management capacity of Government is relatively weak, and will be severely tested by the projected increase in fiscal resources and the country’s drive to address infrastructure gaps through public investments. This stresses the need for strengthening the Government’s capacity to

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manage public investments – to enhance the way in which public investment projects are planned, selected and monitored. The GoM has begun a process to strengthen their ability to better manage public investment, putting in place critical elements of an appropriate framework, such as the creation of an inter-ministerial Project Selection Committee, chaired by MPD as well as efforts to strengthen the technical capacity of the Directorate for Investment and Cooperation (DIC) in MPD. While the main responsibilities for the preparation of investment projects will be with the line Ministries, the Project Selection Committee will be responsible for evaluating projects at the technical level, before projects are considered by the Council of Ministers. A technical group based in DIC has been set up to support the work of the Project Selection Committee. MPD has prepared a draft Integrated Investment Program which is a first attempt at prioritizing public investments in the short to medium term. However, there are still missing elements that will be necessary to enhance the Government’s capacity in this area.

The Project will primarily strengthen the role that MPD and more specifically DIC has in ensuring a more effective integrated public investment program. To that end, it will focus on a number of the elements discussed above in which MPD’s role is more prominent. While MPD is responsible for the quality of the overall public investment portfolio, the projects will clearly be only as good as line ministries prepare or implement them. Implementation will only be possible if integrated within the annual budget by the Ministry of Finance. In that sense, the project, while focusing its capacity building activities on MPD, will also work with other relevant agencies as appropriate. More concretely, the subcomponent will provide support to MPD in the areas of investment planning, formal project appraisal, independent review of appraisal, project selection and budgeting and basic completion review and evaluation.

An improved public investment management system will severely test the convening and coordinating role that MPD can play. While MPD has a central role in the development of a system and reviewing its implementation, line ministries will remain responsible for the preparation, appraisal and implementation of projects and the Ministry of Finance for the budgeting process. The public investment management system will only improve and result in a more effective public investment management pipeline to the extent that line ministries and the Ministry of Finance participate in the efforts. MPD will therefore need to improve in the way it communicates with other agencies, develop a set of user-friendly processes and tools in accordance with existing capacities, and put in place a process that is transparent and therefore owned by the rest of Government. The project therefore will also provide technical assistance to improve the way MPD communicates and discusses reforms with other government agencies and the public at large.

Sub component 3B: Strengthening capacity of the ZVDA and Provincial authorities in the Zambezi Valley (US$ 3.5 million)

The ZVDA was established in April 2011 to replace the Zambezi Planning Office (GPZ) as the lead planning and coordination agency for the development of the Zambezi Valley. The Zambezi Valley geographical area of intervention includes all the 12 districts of Tete Province, 9 districts of

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Zambezi Province, 7 districts of Sofala Province and 4 districts of Manica Province, extending 225,000 square kilometers (25 percent of Mozambique) and including almost 25 per cent of the total population of Mozambique. The sub component will provide support to strengthen technical capacity within the ZVDA for planning, coordination, investment promotion and facilitation, governance, monitoring and impact evaluation and strategic communications.

Subcomponent 3C: Strengthening capacity of GAZEDA and Provincial authorities in the Nacala Corridor (US$ 3.5 million)

GAZEDA and the Nacala Municipality and Customs require support in the planning, regulation, management and operation of the Nacala SEZ in order to strengthen its attractiveness for investors and enhance its business growth potential. Besides the infrastructure constraints (lack of reliable water and power supply and a poor road network) investors in the SEZ face a range of business environment challenges. The business environment in the SEZ can be significantly improved through streamlining procedures for investment approval, access to land and investment incentives. In addition, investors are concerned about crime and security of their investments including land expropriation. GAZEDA has a small dedicated team that will benefit from systematic training and exposure to international good practice in developing, promoting, marketing and managing SEZs including providing after care services. The institutional arrangements for the effective implementation of the SEZ could be clarified and strengthened including securing a private master developer/manager for the industrial zones. GAZEDA needs to be sufficiently empowered to promote and market clearly demarcated and transparently priced serviced industrial plots in the SEZ. The master planning process for the SEZ also could be improved with the preparation of phased, detailed zoning plans and establishing development guidelines and standards.

Component 4: Project Implementation (US$8.0 million)

Investments under this component will support the operations of the PCU in MPD which includes two regional Project Managers co-located in ZVDA and GAZEDA to coordinate and support Project implementation. The component will support project implementation costs including: (i) PCU staff including a Project Coordinator, two Project Manager, a Senior Procurement Specialist, a Senior Financial Management Specialist, an Accountant, a Monitoring and Evaluation and Communications Specialist, two Social and Environmental Safeguards Specialists in Tete and Nacala and two Private Sector Development/Linkages Specialists (ii) PCU operating costs, (iii) consultants for ANE to supplement contract supervision capacity, (iv) IDCF Fund Manager and initial project preparation costs, (v) training and consulting studies (vi) data collection, compilation and analysis and establishing a Project monitoring and evaluation system, (vii) Social and Environmental safeguards management including training, preparation of RAPs, ESIAs/ ESMPs and implementation and monitoring of safeguards recommendations (viii) impact evaluation to determine whether Project interventions are impacting key outcomes including design and implementation of randomized controlled trial impact evaluations or other instruments including regression discontinuity and matching design.

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2.3 Anticipated sub-Project types under the ProjectPhysical interventions will be in the form of:

Roads, utilities, district/municipal facilities and logistics facilities including for cross-border trade;

Feeder roads Value-adding facilities for commercial agribusiness.

A consultative and participatory process will be adopted in the identification and selection of specific and final sub-projects to be considered for funding. Among other the provinces and districts will review their strategic development plans and ensure that relevant plans and projects become part of the Project.

2.4 Sub-project activities ineligible for fundingSub-projects not eligible for funding include those that:

Involve the significant conversion or degradation of critical natural habitats;

Are in locations that are ecologically sensitive such as forests, wetlands, and other unique habitats;

Are located in gazetted national parks, wildlife reserves, controlled hunting areas or forest reserves;

Imply the construction of large dams as defined in OP/BP 4.37 Safety of Dams, as well as small dams, which would trigger OP/BP 4.37 and the World Bank Policy of Projects on International Waterways OP/BP 7.50;

Involve activities already covered by other sources of financing or are already included in other national, regional public development programs and where financing has been secured;

Involve sub-projects which need large-scale land acquisitions from communities;

Involve growing or purchase of tobacco or drugs; Financing of Genetic Modified Organisms will need to be in

compliance of Mozambican legislation and will need an in-depth analysis of their beneficial or negative impacts before a decision on financing will be taken. It is recommended that these sub-projects not be eligible;

Clear selection criteria for the collaboration with investors will be developed with the objectives to minimize the environmental impacts as well as risks of significant social impacts, such as land grabbing.

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3 PROJECT IMPLEMENTATION ARRANGEMENTS

3.1 Implementation by Component The lending instrument selected for this project is the Specific Investment Loan (SIL). This flexible instrument allows the financing of different activities (consultants, equipment and works). Under IDA rules for Mozambique, the project will be financed as 100 percent credit (the Financing).

The Ministry of Planning and Development (MPD) will be the responsible Ministry for this Project. The agencies under MPD, the ZVDA, and GAZEDA will be responsible for the coordination and oversight of implementation in the Angonia Growth Pole and the Zambezi Valley and the Nacala growth pole/Nacala Corridor respectively.

Additional consultation with important stakeholders at the provincial, district and community levels will be carried out to ensure that local NGOs, the private sector and communities at large, particularly women, youth and most vulnerable groups participate in the updating of existing plans and strategies in a way that is in line with Project overall intentions.

A new and specific Project Coordination Unit (PCU) will be established under MPD for this Project. Until then, the existing Project Implementation Unit (PIU) for the NDPFP Project within the MPD will function as the interim PCU led by the Interim Project Coordinator. The PCU will provide for overall fiduciary management, monitoring and evaluation, project oversight, and coordination. The new PCU will consist of a Technical Project Coordinator, Operational Coordinator, Senior Financial Management Specialist, Senior Procurement Specialist, an M&E Specialist, and an Accountant, who will be hired under the PPA. The M&E Specialist will liaise with the Safeguards and Communication Specialists to timely report on the handling of safeguards. Reporting will be the responsibility of a Project Manager appointed by MPD who will be supported by a PIU in MPD. The Project Manager will report to the Steering Committee chaired by MPD.

A Project Manager reporting to the Project Coordinator will be co-located in the ZVDA office in Tete. The Project Manager will liaise with the various agencies in the Provinces, Municipalities and Districts and coordinate/support day-to-day implementation of the Project activities especially under Subcomponent 3B. The Project will support strengthening capacity of the ZVDA and will provide support for a Private Sector Development/ Linkages Specialist (who will be the focal point for the IDCF Manager), an Impact Evaluation/Communication Specialist and a Social and Environmental Safeguards Specialist.

A Project Manager reporting to the Project Coordinator will be co-located in the GAZEDA office in Nacala. The Project Manager will liaise with the various agencies in the Provinces, Municipalities and Districts and coordinate/support day-to-day implementation of the Project activities especially under Subcomponent 3C. The project will support strengthening capacity of GAZEDA and will provide support for a SEZ Technical Advisor, a Private Sector Development/Linkages Specialist (who will be the focal

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point for the IDCF Manager), an Impact Evaluation/Communication Specialist and a Social and Environmental Safeguards Specialist.

Component 2A (expanding water supply) will be implemented by FIPAG, the water supply asset holding agency responsible for investments in urban water supply. There will be a specific Project Agreement signed by FIPAG and a sub-loan agreement signed between FIPAG and the Government. A Designated Account will be opened by FIPAG in a commercial bank.

There will be a specific Project Agreement signed with Fundo de Estradas/Roads Fund (FE) and a sub-loan agreement signed between FE and the Government. A Designated Account will be opened by the implementing agency in a commercial bank. The responsibility for project implementation will be with the FE, the legally autonomous entity for managing the collection and disbursement of road sector funds, while planning and implementation of road works will be the responsibility of ANE, the National roads administration responsible for the management of classified roads in Mozambique.

The Project Steering Committee will be chaired by MPD and consist of representatives from the ZVDA, GAZEDA, MPD, MICOA, MTC, MOPH and MINAGRI. The Steering Committee will meet once every quarter to review Project Progress Reports and provide oversight and support for effective project implementation.

In line with international good practice, a private contractor on a performance-based contract will manage the IDCF scheme. The Fund Manager will be responsible for the effective promotion, implementation, coordination and monitoring & evaluation for each of windows and managing units, along with the management of the Fund’s learning and communication function together with a grievance and conflict resolution functions. The Fund Manager must have permanent presence focus areas of the Facility: the Nacala Development Corridor and the Zambezi Valley, with the possibility of expansion based on market needs. He/she will also be responsible for ensuring that funded projects report on a scheduled basis, and that disbursement and administration of approved grants takes place within the required governance framework. The fund manager will also be responsible for ensuring that evaluation of funded initiatives takes place, with relevant learning captured and communicated. The details of the facility will be outlined in detail in the Project Operations Manual. Details on implementation arrangements, and more particularly on Procurement and Financial Management arrangements, have also been provided as an annex of the project document.

A Project Preparation Advance (PPA) of US$3 million is in place to support the Interim Project Coordination Unit (PCU) and to provide preliminary technical assistance for the preparation of various preparatory studies (including the preparation of the required safeguards documents) and other required design activities.

Given that the activities in Tete are more diverse and spread over rural areas, and the activities supporting the Nacala SEZ are simpler and straightforward, both will be based at ZVDA in Tete. The two staff will work as a team to support each other and to back each other up, and will

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coordinate their activities so that data collection trips and efforts can be leveraged to support both the M&E and the project’s impact evaluations. The two staff will work in partnership with staff at GAZEDA, ZVDA, INE, MINAG, and SDAE, to take advantage of and further strengthen existing capacity and resources on this front. The World Bank’s Africa Gender Innovation Lab will provide the technical supervision of the impact evaluations, will work closely with the two staff, and will provide support in a way that builds the capacity of the Government to measure the impact of programs and policies.

This project incorporates impact evaluation as an integral part of the project. This reflects the desire expressed by stakeholders not only to take stock of and review the project’s achievements, but to also identify the underlying mechanisms and constraints affecting its mode of functioning, so as to provide direction for the later wave of catalytic grants issued under this grant, as well as to inform future investments.

The project team and the government will jointly decide which impact evaluation questions are of highest priority. For now, the following possible impact evaluations have been identified: (i) Impact of road improvements on agriculture; (ii) Impact of out grower schemes on smallholder farmers, (iii) Impacts and spillover of impacts of job creation within the Nacala Special Economic Zone, potentially including analyzing the impacts of these jobs on women’s empowerment; and (iv) Impacts of an agricultural extension program designed explicitly to target female farmers. Each impact evaluation that is carried out will require the full cooperation of the entities involved in implementing the interventions being evaluated.

Efforts will be made to set up randomized controlled trial impact evaluations, as these are the gold standard for creating a treatment group and a control group from prospective project beneficiaries. However, where this is not possible, due to political or practical constraints, other rigorous designs will be used as alternatives. For example, regression discontinuity which compares individuals from just above and below a cut-off line; or a matching design that matches each beneficiary within a treated area to a similar person or household in a non-treated area.

The Integrated Growth Poles Project is fully anchored within the strategy laid out in the PARP, which will help to ensure Mozambique’s continuing commitment to the programs laid out in the Project. The Project aims to support programs that will have a long-term impact on private sector development in Tete and Nampula. The support provided to regional, municipal, and district planning will continue beyond the life of the Project. Government authorities have expressed a strong interest in this planning support. In addition, the infrastructure component is also intended to have a long lasting impact on the two provinces.

The public investments supported under the Catalytic Fund will continue to function and support the beneficiary private investments and out-grower farmers after the end of the Project with the potential of transfer of ownership of the assets to the farmers. The investments in strengthening the capacity of the public training and standards institutions will also continue to have an impact beyond the Project.

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Government institutions to be supported by the Project will continue operating after the Project closes. These institutions include those supported for the spatial and land use planning under Component 3, along with the ZVDA and GAZEDA.

The implementation arrangements under this Project will be established only for its duration; however they will support capacity building within key Government agencies.

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4 DEVELOPMENT CONTEXT IN MOZAMBIQUE AND THE PROJECT AREA

For a better understanding a number of issues that will determine the design, resettlement implications, environmental licensing, implementation and management of the project planned interventions it is important to briefly make a few notes about the context of development in the country in general and the project area in particular.

4.1 General Context of Country Development and Project Relevance

Mozambique has a total area of approximately 800,000 km² and a population of 20.4 million inhabitants (INE, 2007). Its GDP per capita is estimated at 318 USD. The country is bordered to the east by the Indian Ocean, with which it forms a border of more than 2,500 km that is a major port of entry and exit of goods to the country itself and the hinterland countries bordering Mozambique, namely South Africa, Swaziland, Zimbabwe, Malawi and Zambia. To the north, the country is bordered by Tanzania, which also has direct access to the Indian Ocean. This geographic positioning of the country’s ports has resulted, from the colonial period, in the development of three important corridors in the east-west direction and vice versa, meant precisely to serve neighboring countries. These are the corridors of Maputo, Beira and Nacala, which have railway lines as one of their main components. Other components of the corridors are highways, power transmission lines and communications (see Figure 1).

Figure 2: The main development corridors in Mozambique

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Source: World Bank (2010)

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After about a decade of centralized economy and just over 16 years of armed conflict from the mid-1990s, the Mozambican economy has been recording accelerated growth rates on an annual average of 7% in real terms, which is supported by high levels of assistance from Development Partners. The growth rates result from the efforts in the field of macroeconomic policy management and strengthening the enabling environment for promotion of domestic and foreign private investment. Notwithstanding the effects of external shocks with negative impacts on the economy and society, the country tends to register high rates of economic growth, which is accompanied by a climate of political and macroeconomic stability with average inflation rates in the order of a single digit. Economic growth has been driven by (i) foreign direct investment in mega projects10 and operating large-scale high-value agricultural products such as cotton, sugar and tobacco, (ii) the favorable agricultural growth at the family sector level, and (iii) infrastructure rehabilitation projects, including roads.

However, despite the remarkable ongoing growth progress, the country continues to be among the world's poorest and heavily dependent on foreign aid. The most recent rating by the United Nations11 indicates that Mozambique is in the 184th position among 187 countries in terms of human development index. A number of institutional constraints and other constraints continue to hamper the delivery of basic services (including water supply, sanitation, education and health services) and there are many challenges that remain. In 2010, MPD published data indicating that between 2002-3 and 2008-9 there was a slight increase in the incidence of poverty (consumption), which rose from 54.1% to 54.7%. Rural poverty was the worst in that regard although in recent years urban poverty is increasingly becoming a serious concern.

The Government intends to implement a second set of structural reforms that will take advantage of the prevailing macroeconomic climate. The main targets of these reforms are: (i) the public sector, (ii) fiscal policy, (iii) governance and, (iv) the business environment, including the creation of an enabling environment for the establishment and development of small and medium-sized enterprises (SMEs).

More recent analyses have highlighted the fact that the Mozambican economy is characterized by a very small number of mega projects on the one hand, and the family and informal sector, on the other. This presents itself as encouraging imbalances in development and particularly with respect to the diversification of production and access to the benefits of the development by a significant proportion of the population12. Among other things, investments in infrastructure such as roads, water supply and sanitation, energy, telecommunications, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances.

10 e.g. Aluminium Smelter (Mozal), gas exploration (SASOL), Moma heavy minerals and coal in Tete province for a number of actors.11 UNDP (2011) “Human Development Report 2011, Sustainability and Equity: A Better Future for All”12 Carlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008.

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Strengthening small and medium size enterprises (SMEs) is seen as key to changing the prevalent situation.

SMEs (both formal and informal) represent about 98.6% of all enterprises, employing 43% of the workers and accounting for 76% of the total sales. Trade and service sectors form the bulk of business units, with commerce and retail businesses accounting for close to 60%, restaurants and accommodation 20% and manufacturing less than 10%. Most of these SMEs typically grow informally and as a reaction to immediate market deficiencies.

Studies show that despite the SMEs’ importance in national economic development and poverty alleviation they lack growth perspectives, due in part to the entrepreneurs’ and workers’ poor education and training skills, cumbersome regulations, high cost of credit and poorly developed basic socioeconomic infrastructure.13 As a result, local entrepreneurs tend to diversify into a large number of relatively small and uncompetitive businesses rather than grow promising small businesses into large ones that could reach out to more people and offer more income generation opportunities (job creation, gender mainstreaming, etc.).

In 2007, the government approved the “Strategy for the Development of Small and Medium Size Enterprises in Mozambique.” The strategy underscores the central role SMEs are expected to play as drivers of employment, competitiveness, diversification and innovation, including SMEs’ role in mobilizing social resources. The strategy relies on three major pillars:

Improve the business environment for SMEs Strengthen SMEs’ technological and management capacities

(capacity building) Give strategic support (e.g. to exporters and high-tech firms, etc.)

The reduction of transaction costs for SMEs is also given high priority. Among other provisions, the strategy introduces the notion of a ‘negative licensing system’, which means that any SME that applies for a license is automatically licensed unless the competent authority explicitly objects the application for justified reasons. It also advocates simplification of the arbitrary inspection and tax systems. The subsequent “Strategy for Improving the Business Climate”, approved in 2008, deals with these issues in more detail.

Another aspect that needs to be addressed in the Mozambican economy has to do with the fact that due to historical factors a significant number of development sectors (roads, railways, energy, telecommunications, etc.) have focused mainly on serving the region in detriment of domestic needs. The largely functional corridors of Maputo, Beira and Nacala, which link Mozambique to South Africa, Swaziland, Botswana, Zimbabwe, Malawi and Zambia, respectively, are a good illustration of this phenomenon.

These three corridors have efficient railways and road facilities including telecommunications and energy that are in dire contrast with the only and

13 M. Krause and F. Kaufman, “Industrial Policy in Mozambique”, 2011.

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deficient road linking the south to the north (N1) of the country. More internal roads and corridors could play a crucial role in revitalizing the domestic economy, and ultimately with tangible impacts on the regional economy as well.

Under such a context, the project is highly relevant. Through its four major components, it will support government’s efforts in the establishment of the necessary infrastructure network, pilot and demonstrate viable socioeconomic interventions, assist in capacity building and provide adequate monitoring and evaluation mechanism that will benefit the project areas in particular, and country as a whole.

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5 PROJECT TARGETED AREAS

5.1 Location

In broad terms the project area comprises two important Mozambican clusters in the central and northern regions, namely: (i) the Zambezi Valley; and (ii) the Nacala Corridor.

(i) The Zambezi Valley covers 35 districts in the four provinces of Tete, Manica, Zambezia and Sofala and as shown in Figure 2, below.

In the four provinces the 35 districts falling under the Zambezi valley are:

Manica Province: Bárue, Guro, Macossa and Tambara; Sofala Province: Caia, Chemba, Cheringoma, Gorongosa, Maríngue,

Muanza and Marromeu Tete Province: Angónia, Cahora Bassa, Changara, Chifunde, Chiúta,

Cidade de Tete, Luenha, Macanga, Mágoe, Marávia, Moatize, Mutarara, Tsangano and Zumbu;

Zambézia Province: Morrumbala, Mopeia, Chinde, Milange, Mocuba, Maganja da Costa, Namacurra, Inhassunge, Nicoadala and Quelimane.

Figure 3: The Districts of the Zambezi Valley

(ii) Nacala Corridor covers 12 districts from, traditionally, the two provinces of Niassa and Nampula and now Tete, due to the current extension of the Corridor to Moatize from where the coal originates and is planned to be exported through Nacala.

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In the three provinces the 12 districts falling under Nacala Corridor are:

Tete Province: Moatize Niassa Province: Mecanhelas and Cuamba Nampula Province: Malema, Ribaue, Nampula (Rapale),

Nampula City, Meconta, Monapo, Mossuril, Nacala-a-Velha and Nacala Porto.

Figure 4: The PROJECT districts in Nacala Corridor

Within these two broader clusters, the project will focus on a limited number of areas and districts. Within the Zambezi Valley, focus will be on Tete Province, on the Angonia growth pole, comprising the districts of Angonia, Tsangano, and Macanga districts.

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Figure 5: Angonia growth pole

While in Nacala Corridor the project will focus on the Nacala growth pole (Nacala SEZ), covering the districts of Nacala Porto and Nacala-a-Velha both in Nampula Province.

Figure 6: Nacala growth pole

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In Tete province the project will target increasing agricultural production and processing, while in Nampula it will target light manufacturing and logistics.

The ESMF document, which should be used in conjunction with this RPF, makes a brief characterization of the natural and social receiving environment that defines the project area. This RPF focus on the socio-economic aspects.

5.2 Socio-economic Situation

As shown in Tables 1, and 2 (below) the entire targeted project area represents roughly 7,104,366 inhabitants, i.e. close to 36% of the overall country’s population, in 2007.

5.4.1 The Zambezi Valey (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole

The Zambezi Valley occupies an area of approximately 225,000 Km2, which represents around 27.7% of the country’s surface. It has a population of 5,011,892 inhabitants, which is close to 25% of Mozambique's population, 56% of the population of the 4 Provinces in the Central Region that forms the Zambezi Valley (Table 1).

A wide variety of soil, subsoil, climate and energy production resources can be found in the region.

With the exception of Tete province the central region is known for contributing significantly to the phenomenon of increased poverty in Mozambique. Actually, recent data published by MPD (2010) indicate that between 2002-3 and 2008-9 there was a slight worsening of poverty incidence (consumption), which decreased from 54.1% to 54.7%. This is accompanied by gender disparities and other social imbalances under which women, the elderly and people with disabilities are hardest hit.

Figure 7: Various water uses in the Zambezi Valley (Shire River)

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However, in Tete the incidence of poverty declined significantly which may have to do with the increased access to employment associated with the emergence of large economic enterprises in the region. In the last 5-6 years, Tete province, with particular emphasis on Tete City and Moatize town, has been witnessing an accelerated growth. Tete/Moatize and the Zambezi Valley in general have come to the limelight recently for possessing one of the largest and richest coal deposits in the world (coal-iron). In addition to coal, the region has significant deposits of natural gas, rare metals, such as niobium-tantalum, gold, fluorite, tin, heavy mineral sands and pegmatite minerals. In addition to the re-development of the Moatize coalfields, a number of mining projects have been identified and are expected to be developed in the years to come. Mining related projects will form the anchors around which developments in other areas such as agriculture, tourism, industry, etc. will have the chance to flourish. Some of these developments are already happening and they can be easily seen in and around Tete city and Moatize town.

The Zambezi River valley has huge potential for agricultural and agro-processing development. The region has 5.5 million hectares of arable land, making up about 15% of Mozambique’s total arable land. Of this, about 2.5 million hectares have potential for intensive farming. The total potential of irrigated land is estimated at about 1.5 million hectares, which makes up about 45% of Mozambique’s total irrigation potential.

The Angonia growth pole formed by Angonia, Tsangano14 and Macanga has the richest natural conditions for the practice of agriculture in Tete province and occupy a privileged position in the entire Zambezi Valley in particular and Mozambique in general. Due to their natural wealth for the practice of agriculture, Angonia and Tsangano, in particular, have witnessed the development of commercial farming since the colonial period. After independence in 1975 most of the farms owned by the colonial settlers were transformed into state15 and/or cooperative farms. Eventually they collapsed due to a combination of factors. It was during the colonial period and during the years shortly after independence that most of the agricultural infrastructures, including most of the small dams were built, particularly in Angonia and Tsangano.

Macanga district is relatively pristine. In spite of also being considerably endowed for the practice of agriculture at the same level as Angonia, Tsangano the area has remained relatively dormant over the years. This offers a series of opportunities and challenges, which the PROJECT and its stakeholders will need to capture and work upon creatively.

The three districts represent around 32% of the population in Tete province. With a population density of 91 and 44, Angonia and Tsangano districts, respectively, are among the most densely populated in Tete province and the country in general. This can be seen as a reflection of their strong economic potential. Conversely, high population densities in these three districts also mean that land can be relatively scarce when seen from a certain perspective, notably when reference is made to cleared land 14 Tsangano district came into being after it was split from Angonia district following the restructuring of districts in the 1990s.15 CAIA – the agricultural and industrial agro-industrial complex of Angonia is one of the most well-known state enterprises even developed in Mozambique.

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close to basic amenities such as roads and markets. Angonia and Tsangano are known for having considerable land disputes in some of its areas. Local authorities indicated that at present the size of plots in the hands of emerging indigenous commercial farmers is of 15 ha in average. They foresee that it will be difficult to find bigger plots in the traditional areas. The solution would be to open up new areas. However, the steep nature of the terrain in the three districts can be expected to come as an obstacle in materializing this.

The government has established the Zambezi Valley Development Agency (ZVDA) to coordinate the development of this important Valley. It has also established a series of development initiatives targeting the region in an attempt of realizing its potential, namely: Sustainable Irrigation Project (PROIRI), Market-Led Smallholder Development Project in the Zambezi Valley as well as other private sector initiatives that cover agriculture, water supply, sanitation, housing, tourism, education, etc.

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Table 1: Population of the Zambezi Valley by districts

Project Region Provinces Districts PopulationZambezi Valley Tete Angónia 298.815

Cahora Bassa 86.641Changara 156.545Chifunde 100.243Chiúta 75.410Cidade de Tete 155.870Macanga 110.873Mágoè 68.852Marávia 82.874Mutarara 207.010Tsangano 169.392Zimbo 56.350Moatize 215.092Luenha 31.249

Manica Báruè 137.352Guro 68.347Macossa 27.187Tambara 41.775

Zambézia Chinde 119.898Milange 498.635Mopeia 115.291Mocuba 300.628Maganja da Costa 276.881Namacurra 186.410Inhassunge 91.196Nicoadala 231.850Cidade de Quelimane 193.343Morrumbala 358.913

Sofala Caia 115.612Chemba 63.981Gorongosa 117.129Maringué 75.135Cheringoma 34.093Muanza 25.225Marromeu 117.795

Total 5,011,892Source: INE (2007)

Despite the climate of growth and economic prosperity, Tete Province, which is now the epicenter of the Zambezi Valley, is, in terms of Human Development, a province with high poverty rates and a low rate of coverage of water supply and sanitation (HDI report, 2005). With an HIV prevalence of 14 percent, Tete Province is one of the hardest hit by HIV/AIDS in Mozambique. The national average is 16 percent among adults (DPS Tete, 2007). In 2006, cases and mortality associated with HIV/AIDS increased by

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34.6%. There are reasons to believe that the huge influx of people to the province related with the mining operations is aggravating these figures. No official estimates have yet been made available but the current aggravated trends in HIV/AIDS prevalence in the province can be expected to affect future economic development of the province. However, in education, Tete province is above the national average. Linked with the increased job opportunities a series of education institutions have been established and/or expanded in Tete covering all levels and a multitude of technical and professional subjects.

5.4.2 Nacala Corridor (Tete, Niassa and Nampula Provinces) and Nacala Growth Pole

The current geographical structure of the Corridor has its point of origin in the western province of Tete precisely in the Moatize district. It moves into the west-east direction towards the border with Malawi in the area of Kambulatsitsi for about 200km, after crossing the Malawian territory, to successively cover the provinces of Niassa and Nampula, flowing into the coastal zone, in Nacala (Nacala Porto and Nacala-a-Velha). As seen from the table below, the districts in Nacala Corridor represent 2,092,471 people or close to 10% of the country’s population (INE, 2007).

Table 2: Population of Nacala Corridor by districts

Project Region Provinces Districts Population

Nacala Corridor

Niassa Cuamba 184.773Mecanhelas 156.885

Nampula

Cidade de Nampula 471.717Malema 164.898Meconta 154.843Monapo 304.060Mossuril 116.301Nacala Porto 206.449Nacala-a-Velha 88.807Rapale 57.491Ribáuè 186.250

Total 2,092,474

The 3 provinces and 12 districts that form the Corridor are part of the 11 provinces and 147 districts under which Mozambique is administratively organized. In some cases, the provincial boundaries and to a certain extent the district, define distinct ethno linguistic groups, which is not the case in others. A brief description of the Corridor by regions is presented below.

Tete Province

The stretch of the Corridor located in Tete Province pertains to the district of Moatize and crosses three administrative posts: Moatize and Kambulatsitsi Zóbue. The railway line from Moatize to Malawi is planned to

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originate from Moatize Town and follow along the existing rail line to Kambulatsitsi to then continue from there to Zóbue Town, on the border with Malawi. In total, it will extend for approximately 63 kilometers, in Tete province. According to CFM/current planning it is very likely that there will be many more railway lines originating from Moatize/Tete using the Nacala Corridor or parallel to it, e.g. Chiuta-Nacala and Nhamayabwe-Nacala.

The province of Tete, in central Mozambique, has an area of 97,285 km² and a population of 1,783,967 inhabitants (INE, 2007). The results of the 2007 Census also indicate that between 1997 and 2007, the province had a population increase of nearly 43.5%. In addition to its political stability, which, among other is reflected in the fact that from 1994, the year of the first democratic elections to the latest two elections (2008 and 2009), the province went from a majority supporting RENAMO to FRELIMO in a peaceful way. The growth trend in the province is rather associated with several others factors, such as its economic potential and the recent mega-investments in the coal mining sector (Vale, Rio-Tinto, Jindal, Coal India, Reddys Global Industries, Lda, King Ho, etc.) pouring in the province. With this ongoing growth trend, Tete Province16 has moved within a decade from the fifth (1997) to the third (2007) most populous province in the country.

The province shares borders with Malawi, northeast, Zambia to the east, Zimbabwe and Sofala and Manica in the south. It is thoroughly crossed by the Zambezi River and is in its middle it has Cahora Bassa, which is among the largest dams in Africa with a lake-size reservoir. The three districts that form the Angonia growth pole share border with Malawi. This has had a strong economic and social significance. Among other factors, Malawi has offered alternative markets for the products originating from these districts at the same time that it has been a source of land and natural resource conflicts as land and natural resource deprived Malawians increase their presence in the districts looking for land and natural resources.

The Province was severely affected by the civil war that ended in 1992. The insecurity caused by war left marks that are still present, as exemplified by the anti-personnel mines left in the ground, the rural exodus towards urban areas, especially to the city of Tete and thousands of refugees in neighboring countries (Malawi, Zambia and Zimbabwe). The new situation of political stability and security, as well as the climate of economic prosperity has led, in recent years, to the gradual return of much of the refugee population.

The growth is mainly due to two factors: the natural population growth, coupled with the effects of the aforementioned internal and external migration flows that are stimulated by the climate of economic prosperity of the province. However, despite this rapid population growth, the population density of the province (18.2 hab./km2) is still below the national average (25.8 inhabitants/km2).

Although the agriculture, forestry and fisheries are the activities that occupy most of the population of the province, it is the energy sector through the hydroelectric Cahora Bassa, which represents the greatest

16 - The provincial capital is the city of Tete, that lies at about 1,570 km northwest of Maputo City

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contribution to the GDP (Gross Domestic Product) of the Province. INE data for 2008 estimate that this contribution exceeded 40% in 2007.

Agriculture is the main economic activity of the province. This activity is carried out mainly by the family sector and although it is oriented to the livelihoods of smallholder sector it is also characterized by the production of cash crops (mainly tobacco17, cotton and paprika) that contribute significantly to agricultural profile of the province and the livelihood of families. Examples of this type of agriculture can be found in the districts of Angónia, Tsangano, Maravia, Mutarara and Moatize. These districts are also highly productive in food crops such as maize, beans, wheat and a series of vegetables. Angónia and Tsangano in particular are net producers of potatoes, which are sold country-wide and also exported to Malawi.

Underdeveloped agricultural markets form one of the biggest constraints to increasing agricultural production and deriving benefits from this activity to develop the country and the well-being of the producers and local communities. Poor roads, lack of storage facilities, absence of processing units work as disincentives for producers. In the same way as other rich producing areas spread throughout the country, in many parts of Tete province, including in the three districts that form the Angonia Growth Pole, it is common to see people trying to sell their produce directly to potential buyers on the streets. A maize and wheat-processing unit is in the process of being installed in Angonia in an attempt to change this situation. However, the process has been progressing slowly and the unit is not yet operational.

In Moatize these trend also prevail. Agriculture is the predominant activity and is developed by local communities, precisely at the level of each family structure; mainly in rain fed conditions and using rudimentary techniques that influence moderate productivity level. Much of the farming developed by households is intended essentially for self-consumption. The main crops include maize, sorghum, millet, peanuts and beans. In riparian areas, some families use the low areas for the production of vegetables. Although in modest quantities/amounts, smallholders/family units also produce some cash crops for sale to companies operating in the region (tobacco and cotton).

Notwithstanding the challenges, Tete province is ahead of most provinces in the use of agro-chemicals, including pesticides by small and medium size farmers. These are particularly related with tobacco and cotton production.

17 Although this crop is not eligible under IGPP

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Figure 8: Men and women selling maize in the informal markets of Tete City

Other economic activities in the project area include animal husbandry, artisanal fishing and informal trade, especially between the Mozambique and Malawi boarder and/or Mozambique and Zimbabwe borders. The Province has a long standing tradition of livestock, especially cattle and goats. Livestock is, in terms of economic importance, the second activity in the province.

Fishery is predominantly artisanal, of small-scale, oftentimes meant to support the livelihoods of households. This is an important activity along the local rivers. Reportedly, fishermen capture seven different species of fish, Labeo congoro being the largest of the species being caught.

Tete province is rich in mineral resources and is endowed with vast agricultural and tourism potential (angling in Cahora Bassa, hunting activities made possible by abundant wildlife that still exists in parts of the province, etc.). The province has attracted migrants from various parts of the country and the region (including individuals from the neighboring Zimbabwe and Malawi) in search of better conditions of life and work.

Because of its abundant mineral resources (mainly the vast coal deposits), the Province is now the scene of large-scale projects, attracting the attention of major international investors such as JSPL Mozambique Lda Mineral Resources, Vale Mozambique, Riversdale (Rio Tinto) and ETA Star, with the first three already having mining licenses and in the process of implementing their projects.

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However, the increase in job and income generating opportunities cannot disguise the fact that the enormous influx of people to the province, particularly to Tete and Moatize, has been associated with a significant number of concerns. There is considerable (i) land taking from people/poor communities as seen by the recent resettlement experience from Vale; (ii) land and property speculation that is leaving thousands landless and making housing unaffordable for many.

Existing and planned developments have the potential of creating a situation where local people will be forced to live outside their own province of origin due to lack of land for resettlement as more land is taken by developments such as the Mpanda Nkuwa Dam and a multitude of mining concessions.

Figure 9: Land use planning session in Morrumbala District (Zambezia Province)

Sound and long term planning is required to ensure that development is inclusive and contributes to improve the living standards of local people.

Niassa and Nampula Provinces

From Entre-Lagos at the border with Malawi to Nacala the Corridor extends over a stretch of 526 km, which includes the districts of Mecanhelas and Cuamba in Niassa province and the districts of Malema, Ribáue, Mecuburi, Nampula (Rapale), Meconta, Monapo, Mossuril, Nacala-a-Velha and Nacala Porto in Nampula province. Additionally, the Corridor covers the cities of Nampula and Cuamba in Niassa and Nampula, respectively.

The provinces of Niassa and Nampula combine characteristics significantly different, manifested, firstly, by the low population density (8 inhabitants per km²) and considerable isolation of the first (Niassa) and, secondly, the high population density (49 inhabitants per km²) and marked integration by the second (Nampula), which has some of the major business centers in the

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country and thus in the region. These two provinces also can be characterized by a relative distinction between their inland areas (districts of Mecanhelas and Cuamba in Niassa and Malema, Ribáue, Mecuburi Rapale, Nampula, and Meconta Monapo in Nampula) and the coastal districts (Mossuril and Nacala).

However, the districts of the two provinces crossed by the Corridor have enough similarities and tend to define a specific ethno-linguistic and socio-economic unit, which can be defined as the interior of Nampula and south of Niassa. Most people are Macua spread between Christian and Muslim (INE, 2007). There are also similarities in population density from 15 inhabitants/km2 (in Mecanhelas - twice the density of the Niassa province, i.e. 8), and 56 inhabitants per km2 in Nampula province (especially in the coastal areas).

This mosaic defines well an area that is generally very rich in terms of natural resources due to the relative abundance of rivers and streams that translates into very fertile arable soils favorable (characteristics of the traditional agriculture in the country, known to be very productive). In fact, Malema district is known to be the "breadbasket" of Nampula province, mainly due to its rich arable soils. However, in general, the nine districts in this northern region have similar agro-ecological conditions and are important producers of food crops particularly maize, sorghum, cassava, sweet potato, beans, peanuts and others, including a variety of fruits, as well as cash crops such as tobacco, cotton and cashew nuts.

Despite all the favorable natural conditions for agricultural production and land availability, data from the district profiles (MAE, 2005) also indicate that not all households in the districts under study, particularly in rural areas, produce enough food to meet their yearly consumption. Usually, households have food reserves to cover only between 2.5 to 4 months. Data also show that at least 5% of households are generally vulnerable. Women, children, elderly and / or chronically ill or disabled persons usually head the most vulnerable families. To counteract the food vulnerability, a considerable proportion of households resort to survival strategies that include participation in "food for work" initiatives promoted by various development assistance agencies e.g. the World Food Program, Save the Children, INGC, as well as in some IDA/Donor-funded operations, especially in the field of infrastructure/civil works development. They also resort to collecting wild fruits, collection and/or sale of firewood, charcoal, reed, cuttings, traditional beverage (amarula, palm oil, sorghum and/or cashew beers), hunting and sometimes formal employment, mainly by men, in the surrounding townships and villages. One main reason for this situation could be the nonexistence and relative weakness of rural markets, weak agricultural technologies and yields, along with other reasons that could explain the low productivity of natural resources in Mozambique, particularly in the rural areas.

It is worth noting that the City of Nampula is the third largest city after Maputo and Matola and that because of its unifying role of business activities in the northern part of the country the city is also known as the "Capital of the North". Monapo town was once a major industrial center, which declined right after independence and particularly during the war-years that ended in 1992.

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The coastal districts of Nampula located in the project area including Mossuril, Nacala-Porto and Nacala-a-Velha are characterized by high population density (76 in Nacala is substantially above the average of the province 49) despite the fact that Mossuril is not a perfect example in this respect (population density of 34). Apart from producing food crops, typical of Mozambique, these districts also have a strong tradition of producing cash crops such as cotton and cashew nuts.

Nacala Porto district and particularly the city with the same name has been witnessing unprecedented growth in the last few years. The city has one of the deepest natural ports in Africa. It is strategically important not only to Mozambique but also to the neighboring landlocked countries such as Malawi.

Nacala Porto is the second largest urban center in Nampula province and an important trade center for the whole region. The main development factor is the Bengo Bay that offers one of the deepest natural ports in African continent. Thanks to the port, Nacala has become an important terminal of different transport routes, including the national road nr 8 (EN8) that connects Nacala with Nampula; the national road 106 (EN106), which links Nacala City with the northern towns of Pemba and Montepuez in Cabo Delgado province; and the Nacala railway. The rail network covers an area of 920 km and is divided into two rail lines, one from Nacala to Lichinga (800 km), including the extension of Lumbo (42km) and other from Cuamba to Entre-Lagos on the border with Malawi, with a length of 77km (MAE, 2002).

The city used to host a military airport, which the Government is currently transforming into an international civil aviation airport. It will link Nacala to the rest of the country and the continent. This can be expected to translate into renewed economic growth and developments for the entire region and the country as the existing intentions are consolidated. In light of this the rehabilitation and expansion of the 9 km linking the future airport to the city is seen as highly justified.

In other areas there have been intensive construction operations going on in Nacala Porto, which are likely to radically transform the city’s internal dynamics and turn into one of the major economic hubs in northern Mozambique.

Developments in Nacala Porto are being complemented by those occurring and/or planned to take place in Nacala-a-Velha, the neighboring district. The capital of Nacala-a-Velha is expected to have the second deep water port by 2015 when Vale Moçambique will start it coal-exporting operations using Nacala Corridor. Indications are that other developments will follow suit, which in combination will transform the area defined by both the capitals of Nacala Porto and Nacala-a-Velha into one of the fastest economic growing areas in Mozambique and eastern and southern Africa. In 2007 the government decided to establish Nacala Special Economic Zone with the aim of ensuring that the various development initiatives for this important economic area are adequately coordinated. GAZEDA (Special Economic Zones Office) was subsequently established to coordinate the various initiatives.

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6 POTENTIAL IMPACTS OF THE PROJECT

As stated in Chapter 2 of this document the project will have four main components with the following preliminary allocation of funds:

1. Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor

2. Component 3: Institutional Development and Capacity Building 3. Component 4: Project Implementation

Activities under these four components and mainly those from Component 1 will affect the different environmental and social components in different ways. Project interventions with the potential to result in land taking include:

Alignment and realignment of the roads, including feeder roads, construction of water supply mains and distribution networks. Due to inadequate land use planning, which has resulted in an almost chaotic occupation of spaces including the spaces along the roads where the legal safeguarding of reserved areas is not observed it is common to find that the roads right-of-way are encroached by walls, pavements, including structures and temporary buildings that are used to trade in a range of products, including structures used as workshops for the manufacture of a multitude of products as well as for housing in some cases;

Areas for construction/rehabilitation of a series of amenities for the Project such as warehouses and other infrastructures, which could result in resettlement due to the same reasons as above;

Land for development of farming areas of different sizes which may require land over which in one way or the other local people/communities have formally legal and/or customary use rights.

Making reference to the major planned interventions a preliminary assessment indicates that the following project components will be associated with a certain level of resettlement implications:

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Table 3: Possible resettlement implication of the Project

Nr Subproject Possible implications

Expected magnitude

Estimate of people/assets to

be affected1 Rehabilitation

of the three roads (i) R605 from N304 near Mphulu through Tsangano to Ulongwe (103.5 km); (ii) R604 from N304 near Ulongwe through Domue to Furancungo (112.5 km); and (iii) N302

Interference with temporary buildings (informal trade); housing; farms/crops; trees; electric/communication poles, etc

Medium 50 PAPs

100 barracas/kiosks

50 plots

400 trees

2 Water supply mains and distribution network in Nacala Porto

Interference with temporary buildings (informal trade); housing; farms/crops; trees; electric/communication poles, etc.

Medium 40 PAPs

10 barracas/kiosks

20 plots

300 trees3 Ancillary

buildings in both Angonia and Nacala Growth Poles

Interference with trees; other ancillary structures made of local material

Small 100 trees

4 Demarcation of GAZEDA land in Nacala for the FTZ

Interference with farming land/crops and trees

Small – although there will be the need to clarify the extent to which the project should be involved in the funding of this activity as GAZEDA is the land title holder already

80 PAP

100 plots

500 trees

Annex 5 presents the audit document for the 400 ha of GAZEDA land for Nacala SEZ.

Resettlement may result from permanent placement of the components of the project itself and respective operation, but may also be related to the

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construction operations (e.g. machinery movements, extraction places of construction materials, etc.).

However, due to the intrinsic characteristics of the project the need to relocate people and assets will be minimal. It is anticipated that where such will be necessary the preparation of resettlement action plans (RAP) will suffice to deal with them. Both the GOM and the WB accept the preparation of RAP when an RPF has been prepared.

Project characteristics and field conditions suggest that the assets most likely to be affected will comprise:

land through permanent land acquisition (small portions) land through temporary land acquisition (smaller portions) houses (mainly partially where this will happen) other domestic structures (partially and in small quantities) commercial enterprises (mostly informal, partially and in small

quantities) crops (in in small quantities) economic trees (in in small quantities) non-economic trees (in in small quantities) ornamental plants (in in small quantities) cultural property (almost none) public infrastructure (e.g. telephone and electric poles and lines)

Each asset type and category of asset will be compensated differently in line with the GOM and WB policies and regulations to be used.

Where avoiding the relocation of the above-mentioned assets will not be feasible related sub-projects will have to prepare resettlement action plans (RAP)

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7 PRINCIPLES AND OBJECTIVES FOR THE PREPARATION AND IMPLEMENTATION OF A

RESETTLEMENT POLICY FRAMEWORK

As soon as the details of land acquisition and involuntary resettlement become fully known, a Resettlement Action Plan (RAP) will be prepared to provide an implementation guide for the operation. When, however, the details footprints of project intervention areas (that could lead to of land acquisition and physical involuntary resettlement are not fully known, a Resettlement Policy Framework (RPF) that establishes the policy principles and guidelines for the preparation by the Borrower of site specific RAPs is developed for both compliance with OP/BP 4.12 and public information and discussion.

The principles outlined in the World Bank's Operational Policy OP/BP 4.12 as well as the GOM guidelines have been used in preparing this Resettlement Policy Framework18. These principles and the resettlement measures stemming from them will apply to all sub-projects, whether or not the scale and complexity of resettlement issues require preparation of an abbreviated RAP.

This Resettlement Policy Framework is being developed as part of Project preparation since the project will involve acquisition of land use rights leading to some potential minimal losses/restriction to access to some livelihood support resources and construction/rehabilitations of new and existing infrastructures (e.g. roads/feeder roads, warehouses, other infrastructures, farming areas, etc.).

The objective of the Resettlement Policy Framework is to ensure that by screening changes in land-use and infrastructure development, identifying where acquisition of land use rights for public use is inevitable, and where involuntary resettlement and compensation for local people’s losses is unavoidable, that mitigating activities will be designed and carried out in a socially sustainable manner. This will require the provision of adequate resources to meet the needs of the project affected people (PAP) whether they are physically or economically affected by project activities. It also requires adequate, meaningful and participatory consultation with the project affected people to ensure that they fully understand their entitlements. Such participatory public consultation should include and pay particular attention to women, the poor and most vulnerable groups of the affected and host communities.

It is a well-known fact that involuntary resettlement has the potential to cause severe long-term adversity, impoverishment, and environmental damage unless appropriate measures are carefully planned and carried out. The screening process provided through the development of this Framework is consistent with the Bank's safeguard OP/BP 4.12 principles and guidelines for Involuntary Resettlement. The policy requires that all 18 Involuntary resettlement should be avoided, or minimized, exploring all viable alternative project designs. Where it is unavoidable, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits.

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activities financed by the Bank be screened for potential impacts, and that the required resettlement and compensation be carried out on the basis of screening results. The Framework takes into account the provisions of the GOM legislation and the World Bank’s policy objectives on involuntary resettlement, which can be summarized as follows:

Resettlement should be avoided where feasible, or it should be minimized, exploring all viable alternative project designs.

Where it is not feasible to avoid resettlement, its activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in the benefits of the project;

Displaced people should be meaningfully consulted and be provided with opportunities to participate in planning and implementation of resettlement programs;

Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

Sub-project planning, implementation, monitoring and evaluation will be carried out in a participatory way in order to minimize negative impacts and where necessary, encourage voluntary resettlement and ensure that sub-project benefits accrue to the affected people, particularly women, the poor and most vulnerable people. It should also encourage monitoring of voluntary resettlement to ensure that affected people are not left worse off than they were before the sub-project.

Below the various aspects to be dealt with and captured in RAP documents are presented. These are generalized indications of the step-by-step procedures to be adopted in RAP preparation. They should be adjusted to specific conditions determined by the subproject magnitude and general characteristics.

Thus, depending on the nature and characteristics of the relationships between specific sub-projects and receiving natural and particularly social environment as well as the magnitude of the resettlement implications, specifically the RAP will cover, among other, the following:

Project background: describing the (i) project context; (ii) socioeconomic profile of the project area; (iii) project description and main components; and (iv) the need for resettlement/compensation.

Potential impacts: description of the most important potential impacts of the project by project component.

Socioeconomic studies and results of the census: (i) results of the census, assets inventories, natural resource assessments, and socioeconomic surveys; (ii) identification of all categories of impacts and people affected; (iii) summary of consultations on the results of the various surveys with affected people; (iv) the need for updates of the census, assets inventories, resource assessments, and socioeconomic surveys, if necessary, as part of RAP implementation, monitoring and evaluation.

Legal and policy framework: (i) national legal framework including sector specific Resettlement Policy Frameworks19; (ii)

19 E.g. entities such as ANE (Roads) and FIPAP (urban water supply) have their own resettlement policy frameworks

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World Bank Policy on Resettlement; (iii) comparison between National/Sector Resettlement Policy Frameworks and WB policies, complementarities/discrepancies and the way forward.

Institutional framework: (i) identification and listing of all relevant parties in the RAP and general specification of their roles and responsibilities.

Eligibility for compensation: (i) entitlement policies under the RAP – who is entitled to what under each category of losses included in the inventory.

Valuation of and compensation of losses: (i) criteria, laws and regulations used for the valuation of losses included in the inventory.

Resettlement and compensation measures: (i) public notification of the intention to acquire land; (ii) the purpose; (iii) the details of the proposal or plan for which the land shall be acquired and where this can be inspected; (iv) that any affected person may, by written notice, object to the transaction of his/her land and assets, giving reason for doing so to relevant; (v) resettlement and compensation approach for all affected assets and PAPs in line with expressed preferences and other considerations (cash, substitution, etc.).

Resettlement areas and new market sites: (i) measures to be taken to prepare resettlement areas to restore and/or improve the living standards of PAPs, if applicable.

Housing, infrastructures and social services: (i) if applicable, additional interventions in the areas of housing, infrastructures and social services including measures to deal with HIV/AIDS prevention and preventing trafficking of people, etc.

Environmental protection and management: (i) ESIAs/ESMPs and RAPs and other safeguard measures that may be required for RAP developments (RAP internal projects in case these require any special environmental management measures)

Stakeholder consultation and participation: (i) document community consultation and participation during RAP preparation and specify what will be done during the subsequent phases of RAP implementation.

Integration with host population: (i) if applicable actions carried out or to be carried out to prepare host communities to welcome PAPs.

Grievances registry and redress procedures: (i) description of the step-by-step process for registering and addressing grievances; (ii) specific details regarding a cost-free process for registering complaints; (iii) response time and communication modes; (iv) description of the mechanism for appeal; and (v) description of the provisions for approaching civil courts if other options fail.

Organizational responsibilities: (i) institutions that will be required to provide general direction and management including day-to-day management of the various issues (at the various levels (household, community, local, district, provincial, central, etc.).

Implementation schedule: (i) chronological steps in implementation of the RAP, including identification of agencies responsible for each activity and with a brief explanation of each activity; (ii) month-by-month implementation schedule (using a Gantt chart, for example) of activities to be undertaken; (iii) linkages between resettlement implementation and initiation of works for each of the project components.

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Costs and budgets: (i) identification of resettlement costs, if any, and the mechanisms that will be established to ensure coordination of disbursements with the RAP and the project schedule; (ii) preparation of an estimated budget, by cost and by item, for all resettlement costs including planning and implementation, management and administration, monitoring and evaluation, and contingencies; (iii) description of the specific mechanisms to adjust cost estimates and compensation payments for inflation and currency fluctuations; (iv) description of the provisions to account for physical and price contingencies; (vi) description of the financial arrangements for external monitoring and evaluation and the process for awarding and maintenance of contracts for the entire duration of resettlement

Monitoring and evaluation: (i) description of the internal/performance monitoring process; (ii) definition of key monitoring indicators derived from baseline survey; (iii) list of monitoring indicators that will be used for internal monitoring: (iv) description of institutional (including financial) arrangements; (v) description of frequency of reporting and content for internal monitoring; (vi) description of the process for integrating feedback from internal monitoring into implementation; (vi) definition of methodology for external monitoring including key indicators; and (viii) description of arrangements for final external evaluation.

The RAP document will also contain a series of practical recommendations on actions to be adopted to ensure a smooth restoration of affected people’s lives as well as a series of annexes that will include: copies of census and survey instruments, interview formats, and any other research tools; information on all public consultation including announcements and schedules of public meetings, meeting minutes, and lists of participants; examples of formats to be used in monitoring and reporting on RAP implementation.

Under this project, which is expected to be associated with subprojects of minor resettlement implications, it can be anticipated that in most cases only some of the above-proposed chapters will need to be developed in detail. However, they offer a useful and practical guide to ensure that all aspects, including those that will not need to be developed in detail are adequately considered. Together all the aspects that have been covered above assist in ensuring that both the WB and GOM policies and regulations are put in place.

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8 THE SOCIAL SCREENING PROCESS

A combination of strategies will be used to ensure that sub-projects are compliant with the GOM regulations and WB policies on involuntary resettlement in terms of avoiding/minimizing its occurrence in the first place and subsequently in turning into in a development opportunity where it is going to be unavoidable.

The Environmental and Social Screening Form (Annex 1) developed as part of the formulation of the ESMF for the Project will be used to facilitate:

identification of potential environmental and social impacts and the identification of health and safety risks;

determination of their significance; assignment of the appropriate environmental category; determination of appropriate environmental and social mitigation

measures; and determination of the need to conduct an ESIA, a freestanding ESMP

and/or to prepare Resettlement Action Plans (RAPs) where required or determine that no action need to be taken.

The form can be used in combination with the “Preliminary Environmental Information Sheet” (Ficha de Informação Ambiental Preliminar) also provided in Annex 2, which is commonly used to screen projects under the Mozambican ESIA/ESMP process.

Preparation activities for the screening process will include a desk appraisal of the intervention (e.g. construction and rehabilitation plans) for sub-project related infrastructure.

Subsequent to the desk appraisal of the interventions, the initial screening of the proposed sub-project activities will be verified in the field, with the Environmental and Social Screening Form (ESSF) prepared by Project Safeguard staff. The District Environmental Officers, stationed at the SDPI and/or municipalities, will do the verification. Subsequently, they will oversee the implementation of the required measures

It is during this stage and through this initial information about the project that relevant entities become informed about the potential intervention and the category under which it falls in terms of the ESIA process (see project ESMF document for more details). This offers an important opportunity for project screening and feedback, including assessing it in terms of resettlement implications.

The public participation process foreseen under the ESIA and RAP processes, mainly during the Scoping and Final Phases as well during the RAP itself also offers valid opportunities for continuous assessment and identification of issues of interest for a proper management of resettlement issues.

Two other important aspects to be considered to ensure that the siting of the sub-projects is compliant with the need to avoid/minimize resettlement

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are (i) integration and harmonization with the district land use plans; and (ii) consultation and participation.

Integration and harmonization with the district land use plans

In addition to defining the district as the main territorial planning unit the GOM, through the Land Planning Law (Law n.º 19/2007 of 18 of July) and its regulation, requires all districts to have land use plans, the District Land Use Plans, better known as PDUT. Land use plans are meant to provide adequate zoning for interventions based on suitability of the different land areas and respective pre-conditions as well as social interests. These plans are a way of exercising holistic and integrated approach to land and natural resources management, including strategic planning. Where these exist, the siting of subprojects will benefit immensely from being harmonized with the district land use plans. An adequate zoning at the district level should be able to provide sound guidance regarding the best siting for each specific intervention.

However, due to a multitude of reasons most of the districts are still in the process of finalizing these plans. Annex 3 presents the current status of preparation of these plans in the two project regions, i.e. the Zambezi Valley and Nacala Corridor. It can be seen that the districts of Macanga (2009), Nacala Porto (2009) and Nacala-a-Velha have already completed these PDUT. Angonia and Tsangano have not yet completed them.

Consultation and participation

Local people and communities as well as their representatives need to be continuously involved in the decision-making related with the diversity of Project interventions. The various pieces of Mozambican legislation on land and environmental management place public consultation and participation at the top of the agenda. The preparation of the ESMF and this RPF has started this process of public consultation and involvement. During the subsequent phases of the project implementation efforts will be made to ensure that the provisions in those regulatory documents are strictly followed. Local people/communities and their representatives are properly placed to streamline the needs of local stakeholders and to promote the local resource management capacity.

It is fundamental that by all means the Project does not contribute in any way to create land conflicts and/or exacerbate any such conflicts, where they exist. It is a known fact that if not adequately planned projects such as this have the potential to bring employment, infrastructure and modern technologies but they can also contribute to landlessness, local food insecurity, environmental damages, rural-urban migration etc., which are not desirable outcomes.

Additionally, under the Project the feasibility studies as well as project final design and implementation will be carried out in such a way that there will always be attention paid to the need to avoid/minimize resettlement. It is a known fact that there are practical mechanisms that can be applied in the project cycle to ensure that avoidance and minimization of resettlement are achieved. One such example is the adoption of the “Corridor of Impact” for standard infrastructures such as roads, water supply, etc. instead of “right-

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of-way”. While the “right-of-way” refers to the areas surrounding infrastructures that, by law, should be free from any form of occupation the “corridor of impact” refers to the space absolutely necessary for construction and operation of an infrastructure. The latter is usually narrower and opens opportunities to avoid/reduce the number of people/assets that need to be resettled.

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9 PREPARATION REVIEW AND APPROVAL OF RESETTLEMENT ACTION PLANS (RAP)

The Ministry of Planning and Development (MPD) through its National Directorate of Planning Services (DNSP) will be the host institution for the Project. The two management units at ZVDA and GAZEDA will each be provided with a Social and Environmental Safeguards Specialist

In line with the GOM organizational structure most the subprojects will be sectoral projects, i.e. associated essentially with a specific sector such as public works, agriculture, trade, water supply, transport, etc.

Following the steps foreseen in the ESMF for this project, the different Developers and the Project Social and Environmental Safeguards Specialist in collaboration with MICOA at the district (SDPI) and provincial (DPCA) level and other interested parties to be identified will work together in project screening to determine and finalize categorization. Consultants paid by the project will carry out the actual work. Staff at the district level will be trained and assisted by the project to have a good understanding and skills to participate in the process.

The extent and detail of subproject screening and for planning and information needs will depend on the severity of impact. The process shall include, among other, a baseline study and a census to determine the level of impact to PAPs, and their assets; and establishment of the cut-off date. More specifically the following steps will be adopted:

Step 1 - Preparation and Approval of Project Activities: the Project or the consultant hired for that effect will prepare the project activities to be undertaken in the proposed sites in terms of construction, rehabilitation and maintenance works.

Step 2 - Establishment of the Cut-off-Date: using participatory methods, the RAP consultant and the project stakeholders organized in Consultative Committees, for the project area, will establish the cut-off date.

Step 3 - Socioeconomic Surveys and Census: the RAP consultant will carry out a socio economic survey and a baseline census; and collect any relevant additional information on the PAPs, land and the assets to be affected. The census will identify the PAPs (focusing on the individual household and vulnerable groups) and; assess their incomes and assets, for preparation of the RAP.

Step 4 - Valuation of Assets and Determination of Compensation: on completion of the socio-economic survey and the baseline census, the RAP consultant will evaluate the assets and propose the compensation value. The compensation lists in the RAP should not contain names, only a code for each PAP. The PAP should be given his/her code to claim compensation. A separate list with the PAPs names should be kept by the consultant and the Project Management. This list should be kept confidential as it contains personal information of the each specific PAP and their compensation amount.

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Step 5 - Preparation of the RAP: a RAP shall be prepared and include details of the socio economic survey and the census of affected persons and their assets, in line with this RPF.

Step 6 - Evaluation and approval of the RAP: the ESSS shall forward the RAP, together with any additional information, to the respective institutions (MICOA, MMAS) and relevant stakeholders who together with the District Authorities and their teams at the district level shall scrutinize them to ensure compliance with the relevant requirements.

9.1 General ConsiderationsAccording to the World Bank Involuntary Resettlement (OP/BP 4.12) principles and guidelines, all PROJECT construction activities that trigger the policy and therefore require resettlement action plans will be subjected to final approval by the World Bank, to ensure compliance with the Bank’s safeguards. The Bank Safeguards Specialists will ascertain that land is actually acquired or access to resource is lost, denied, or restricted; and that the individual resettlement action plans are consistent with this RPF.

The World Bank shall provide final clearance and approval of the RAPs, which shall be in accordance with the applicable by-laws, sectorial requirements as well as the World Bank Policy requirements.

8.2 Public Consultation and ParticipationAs supported by World Bank Safeguards policies and Mozambican regulations, projects involving resettlement should systematically involve public consultation and participation. According to the level and magnitude of impacts, the Public Consultation Directive of MICOA (particularly at Provincial Level -DPCAs) could be applied. In this regard public consultations, through participatory appraisal will be mandatory for all projects requiring land acquisition, compensation and resettlement.

During screening there must be adequate consultation and involvement of the local communities and the affected persons. Specifically, the affected persons must be informed about the intentions to use the sites for the project activities, facilities and structures. The affected persons must be made aware of:

(a) Their options and rights pertaining to resettlement and compensation (in kind and in cash);

(b) The precise technically and economically feasible options and alternatives for resettlement sites;

(c) The process and proposed dates for resettlement and compensation;(d) Effective compensation rates, at full replacement cost, for loss of

assets, services or ancillary items; and (e) The proposed measures and costs to maintain or improve their

livelihoods and living standards.Public consultations at the screening stage will aim at:

(a) Disseminating concepts for proposed project activities with a view to evoking project interest amongst the communities;

(b) Inviting contributions and participation on the selection of project sites;

(c) Determining community willingness to contribute towards long term

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maintenance of the project facilities.

During public consultation, there is a need to negotiate compensation and resolve conflicts.

9.2 Template for the Design of Sub-Project RAPs A RAP must contain a complete inventory of all assets to be acquired, for which a full census shall be undertaken to register and document the status of the potentially affected population within the project impact area, their assets, their tenure status, and their sources of livelihood. All forms of land occupancy (including informal title) should be inventoried. The asset inventory and census should determine the cut-off date for entitlement to relocation assistance or other benefits from the project. In accordance with provisions of the RPF and the specific RAPs, all people moving into the project area after the cut-off date will not be entitled to any support. This should be clarified during consultations to the population. A Guideline and an Outline of potential site specific RAPs are in Annexes 4 & 5 below.

A RAP will also contain a time-bound schedule for implementation. Compensation and assistance are to be based on the overall principle that people shall not suffer net losses as a result of the project.

The site specific RAPs for the Project, if any, shall give a detailed guidance on how to implement the provisions in the RPF, including institutional arrangements and budgets, based on the numbers of PAPs with entitlements under the RPF. Participation and involvement of stakeholders, particularly women, the poor and most vulnerable groups throughout the project, both during the period of planning and implementation, shall be incorporated in the process.

The RAP will follow the usual outline (OP/BP 4.12, Annex A), appropriately modified in order to take into account those matters dealt with in this RPF. The scope and level of detail of the RAP will vary with the magnitude and complexity of resettlement.

9.3 Approval and Public Disclosure of the site specific RAPsOnce the RAP has been prepared, it must be forwarded to the respective line institutions such as the Ministry of Environment (MICOA). MICOA will send the RAP to relevant institutions for endorsement and recommendations. The World Bank will also endorse the RAP to ensure compliance with the Bank’s Operating Procedures. Once approved along with the other site specific ESIAs/ESMPs, the RAP, like the ESMF and RPF will also be disclosed publicly both in-country and at the InfoShop prior to implementation.

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10 LEGAL FRAMEWORK

In terms of the Constitution in Mozambique there is no land market as such. The land belongs to the state and people and other entities acquire the right to use it. The principles and objectives guiding land acquisition, loss of assets or impact on livelihood and resettlement in Mozambique are embedded in the relevant policies and regulations. Among other, the guiding principles include:

There should be compensation upon land acquisition, resettlement, loss of assets and impact on livelihood;

There should be no distinction between compensation for land with formal title deed and customary land.

These and other principles are presented in this Chapter, which highlights the relevant policies and legislation.

10.1 Relevant Mozambican Laws and RegulationsAfter many years of not having a single instrument to guide resettlement planning and action on 8 August 2012, the Cabinet approved Decree 31/2012, the new “Regulation on the Resettlement Process Resulting from Economic Activities”. In spite of the fact that it still leaves a lot of issues unanswered, seen from a certain perspective, this regulation fills a longstanding void in this regard. The document is briefly described below.

Article 15 indicates that a Resettlement Action Plan is part of the Environmental Impacts Assessment, as per Decree 45/2004, of September 29 of the latter process.

In terms of principles the new regulation establishes that the resettlement process should ensure social cohesion, social equity and direct benefits in that affected people should directly benefit from the interventions that caused their resettlement and respective socioeconomic impacts.

In the definition of objectives, the regulation restates the principle of turning resettlement into a development opportunity by allowing affected people to enjoy quality life, social equity and ensuring the sustainability of the physical, environmental, social and economic aspects around them.

In line with the ultimate interest of linking resettlement with District Land Use Plans, it also indicates that District Governments should approve resettlement action plans and that this should be done by the department that supervises land use planning at that level.

In relation to the rights of the affected people, the regulation states that these are entitled to:

The reestablishment of income and living standards that are equal and/or superior to what they had before resettlement;

Have their assets transported to the new site; Live in an area with adequate social and economic infrastructure; Have enough space to develop their subsistence activities; and Give their opinions throughout the entire resettlement process.

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It then goes on to elaborate on the various units that, from the government side, should closely supervise, monitor and evaluate the resettlement process to ensure that the best practices are adopted and that lessons are learnt to benefit the process at hand and other related processes in the country.

Article 13 of the Regulation deals with “Public Participation” and emphasizes that resettlement should be participatory throughout its phases and that major public meetings should be formally made known. Article 14 highlights the importance of the “Right to Information” by affected people and other relevant stakeholders. In relation to public participation and disclosure in general, Article 23 clearly states that the planning, preparation and implementation of a RAP should result in at least four (4) public meetings, which should be heralded in local media.

Articles 16, 17 and 18 deal with specific aspects related with the types of resettlement, land and housing specifications, including details about the social and economic infrastructure that should be made available to the resettled people.

Articles 19, 20, 21 and 22 delve into the steps and work contents related with the planning, preparation and implementation of the RAP and provide the guidelines to be adhered to.

It is worth stressing that this is a new decree, whose practical implications are still to be seen and assessed. Preliminary indications are that it does not solve the need to be specific in certain areas of the resettlement process which continue to be spread over a series of legal documents. On the other hand the document clearly lacks a framework and does not elaborate on the need to avoid/minimize resettlement

Thus, it will continue to be necessary to creatively combine it with other legal and regulatory documents to devise the best measures to be adopted in relation to specific issues.

Among other, it will certainly continue to be relevant to basically follow the OP /BP 4.12 of the World Bank on Involuntary Resettlement, which is endorsed by the Mozambican government as has been the case of the resettlement procedures undertaken to date by development initiatives.

However, before the OP/BP 4.12 of the World Bank on Involuntary Resettlement are presented the RPF covers other relevant guiding principles for resettlement in Mozambique, namely:

a) Land tenure and land issues

Land taking is the most sensitive aspect behind any involuntary resettlement. Since its independence in 1975 Mozambique has undertaken a series of legal reforms to regulate the rights of access and use of land by e diversity of citizens. The most relevant being:

The Constituição da República de Moçambique (Mozambique’s Constitution), in relation to Land aspects, stipulates: (i) the maintenance

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of land as State property; (ii) land may not be transferred (i.e. sold) and the country does not have a “land market” per se. Holders of land rights are able to transfer improvements, such as buildings, from one party to another. Furthermore, other than stating that compensation should be paid when land is expropriated in the public interest, both the Constitution and the Land Law (see below) do not expand on issues related to compensation, in terms of the principles, forms, eligibility, valuation, adequacy, procedures, timing and responsibilities; (iii) the safety of access and use of the land by the population and the investors (…), recognizing the rights of customary access and administration of the land by rural resident populations, promoting the social and economic justice; (iv) the safeguard of the rights of women to access and use of the land; and (v) the sustainable use of natural resources, to guarantee quality of life for the actual and the future generations, ensuring that the areas of total and partial protection maintain their environmental quality and the specific intentions they were established for.

The Lei de Terras (Land Law), no. 19/1997 provides the basis for defining people’s land use rights, providing the details of rights based on customary claims and the procedures for acquisition of titles for use and benefits by communities and individuals. The law recommends a consultation-based process that recognizes customary rights as the means for identifying the claims of communities and individual members of communities without titles.

The Regulamento da Lei de Terras (Regulation of the Land Law), approved by Decree 66/98, of December 8th, indicates that the approval of the construction of public infrastructures, including underground water works, will result in the automatic creation of Partial Reservation Areas i.e. right-of-way (ROW) of 50 m, that borders them. One can neither acquire the rights to use and benefit from that land nor develop activities without a license. In practice, this provision is not followed and with poor law enforcement in many parts of the country the encroachment of the ROW tends to become the norm.

The Regulation of the Land Law also identifies the fees to be paid by holders of land titles, before demarcation and authorization are completed, as well as the annual fee for rights of land use and benefits. These fees have recently been updated (201020). The Regulation also recommends compensation resulting from losses by transfer, with basic guidelines for compensation in the form of tables produced and updated by Provincial Directorates of Agriculture. These tables cover the average values (the market value) attributed to several temporary and permanent arboreal crops. In 2010, the National Directorate of Agrarian Services, within the Ministry of Agriculture, produced and updated these tables for the entire country.

The Lei do Ordenamento do Território No. 19/2007 de 18 Julho (Territorial Planning Law) has the purpose of ensuring the organization of national land and sustainable use of its natural resources; observing legal, administrative, cultural conditions; and providing favorable

20 Ministerial Diploma 144/2010 of August 24 that updates the fees to be paid by applicants to land use rights.

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conditions for the socioeconomic development of the country; the promotion of quality of life of the population; and environmental protection and conservation. This law is applicable at all levels, from national to district level, and requires the preparation of territorial (national, provincial, district, municipal/town) master plans in line with actual conditions at each level. Among other, this law confirms that expropriation for the public interest shall give rise to the payment of fairly calculated compensation in order to compensate for the loss of tangible and intangible goods and productive assets as well as for the disruption of social cohesion21. Ministerial Diploma 181/2010, approved in November 2010, is also meant to govern this process of compensation.

The Decreto No. 23/2008 de 1 Junho/Regulamento da Lei do Ordenamento do Território (Territorial Planning Law Regulations), Article 68 (No. 2a) further specifies that expropriation for the purpose of territorial planning is considered to be carried out in the public interest when the final objective is safeguarding the common interest of a community through the installation of economic or social infrastructure with large positive social impacts. Article 70 (Nos. 1-3) also establishes that fair compensation must be paid before the transfer or expropriation of property and assets, and should not only cover the real value of expropriated assets, but also damage and loss of profit. As mentioned above specific aspects related with compensation are also governed by Ministerial Diploma 181/2010. This diploma also reiterates the provision in Chapter 10 of Decree N.º 23/2008 in that land taking for the fulfillment of public interests should be made public by the Cabinet under the proposal of the developer. However, public announcement by Cabinet has not been and it is not yet current practice. There are no clear mechanisms to follow it and it can take a lot of time. Alternative ways of overcoming this gap become necessary and may need to be applied in this project.

Valuation of assets and losses and compensation for losses

After many years of a relative vacuum in this area, in the last two-three years there have been new and significant developments in the regulation of compensation for agricultural and infrastructure assets. As said "Regulation No. 66/98 of the Land Law recommends compensation resulting from the transfer of losses, with basic guidelines for compensation in the form of tables produced and updated by Provincial Directorates of Agriculture, covering average values (market value) attributed to several annual crops and trees, but these were rarely available and in most cases they were ever up to date when needed. Recently (2010) the National Directorate of Agrarian Services, in the Ministry of Agriculture produced new tables for temporary and permanent crops, which also require updating but no concise criteria has been offered for such a process.

For infrastructures but also crops, recently (November 3rd, 2010), the Ministries for the Coordination of Environmental Affairs (MICOA), Finances (MF) and Justice (MOJ) approved the Ministerial Decree nr. 181/2010 on "Expropriation Process Related with Territorial Planning". In addition to

21 A specific document regulating the process was approved in 2010 (Ministerial Decree 181/2010 of November 3.

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putting into practice important aspects of the Territorial Planning Law (Law nr. 19/2007) and the regulation of that law (Decree nr. 23/2008) this Decree gives important steps in filling the gap that existed on the calculation of values for compensation. In its point “4.2.1 Terms for calculating infrastructure” the diploma covers terms for calculating infrastructures and crops. The Diploma does not necessarily revoke the provisions that already existed but provides them with greater consistency. Yet it seems that it does not overcome the shortcomings of "updating prices", and it is also void on infrastructures built using precarious (local) materials, which are usually the most affected when resettlement is also associated with poor land use planning and poor law enforcement.

Regarding particularly to infrastructures, a factor which tends to result in lower prices when using the legal mechanisms is the ”depreciation”, which the existing laws and regulations require that be considered.

In all cases the existing laws and regulations do not give straight forward answers and are open to different forms of interpretation which tends to lead to different results when applied by different resettlement practitioners.

As a matter of fact, experience has shown that the above-mentioned tables, both for the agricultural sector and for the public works and housing, are rarely available and when available are often out-dated. Moreover, for various reasons, the Mozambican market rarely provides reliable, consolidated information about prices of comparable assets or acceptable substitutes. This has led practitioners of resettlement actions to look for alternative ways and arrangements to make calculations and valuation that refer only to the costs of tangible assets (i.e. direct/tangible). Intangible aspects (e.g. sentimental attachment to the affected assets, proximity to neighbors or relatives, sacred sites, aesthetic values, etc.) should be treated (negotiation/valuation) separately in consultation with all relevant stakeholders. From 0% to 20% foreseen in the Decree 181/2010, the Project will need to decide on the applicable percentage (%) factor be used as disturbance factor to compensate for a certain number of assets and situations.

a) Natural resources usage rights

In regard to natural resources usage rights and environmental protection in general there have been several domestic developments as well as the endorsement of several regional and international provisions that have become national law. The Project’s ESMF document presents a concise description of relevant aspects. The present RPF should be used in combination with the Project ESMF to cover those aspects.

b) Social welfare legislations

The Provincial Directorate of Women and Social Affairs (DPMAS) of MMAS and the National Institute of Social Affairs (INAS), are responsible for the subsidy to the poorest and destitute members of the population and for guaranteeing that the rights of the most vulnerable are respected. Although there are no specific legal guidelines for the social aspects of resettlement, the ratification by Mozambique of the International

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Conventions on the Child's Rights and Human Rights, the Elimination of All Forms of Discrimination Against Women, the Mozambique’s agenda on Human Settlements and the Labor Law define specific rights based on the fairness and in the equality of opportunities, without discrimination, to the benefits of the enterprises and private investments

10.2 World Bank Policy RequirementsThe World Bank has adopted the following policy objectives in relation to involuntary resettlement:

a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs;

b) Resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; and

c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation; whichever is higher.

Under the WB definition a resettlement action may include (i) loss of land or physical structures on the land, including business, (ii) the physical movement, and (iii) the economic rehabilitation of project affected persons (PAPs) in order to improve (or at least restore) the levels of income or life prevailing before the action causing the resettlement has taken place”.

Where resettlement is unavoidable, the bank has provided the following guiding principles in order to achieve the above-mentioned objectives:

a) Preparation of a resettlement policy framework and resettlement action plan that ensures that displaced people are : Informed about their options and rights pertaining to

resettlement; Consulted on, offered choices among, and provided with

technically and economically feasible resettlement alternatives; Provided prompt and effective compensation at full replacement

cost for losses of assets attributable directly to the project;

Provided assistance (such as moving allowances) during relocation;

Provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors are at least equivalent to the advantages of the old site;

Offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living;

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Provided with development assistance, in addition to compensation such as land preparation, credit facilities, training, or job opportunities; and

Provided with an opportunity to resolve disputes through a grievance resolution mechanism.

The policy also advocates that: Particular attention should be paid to the needs of vulnerable groups

among those displaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation;

Implementation of resettlement activities should be linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. These measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons;

Displaced persons and their communities, and any host communities receiving them, are timely provided with relevant information, consulted on resettlement options, and offered opportunities to participate in planning, implementing, and monitoring resettlement. Appropriate and accessible grievance mechanisms are established for these groups;

In new resettlement sites or host communities, infrastructure and public services are provided as necessary to improve, restore, or maintain accessibility and levels of service for the displaced persons and host communities. Alternative or similar resources are provided to compensate for the loss of access to community resources (such as fishing areas, grazing areas, fuel, or fodder); and

Patterns of community organization appropriate to the new circumstances are based on choices made by the displaced persons. To the extent possible, the existing social and cultural institutions of resettled people and any host communities are preserved and the preferences of the resettled people with respect to relocating in pre-existing communities and groups are honored.

The policy also sets the following guiding principles on which to base the criteria for determining eligibility for compensation, resettlement and rehabilitation assistance measures for PAPs:

(i) Persons that have formal legal rights to land, including customary and traditional; and religious rights recognized under the laws of Mozambique;

(ii) Persons who do not have formal legal rights to land or assets at the time the census begins; but have a recognized claim to such land or

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assets through the national and customary laws of Mozambique. This class of people includes those that come from outside the country and have been given land by the local authorities to settle, and/or to occupy in matrimonial society; and

(iii) Persons who have no recognizable legal right or claim to the land they are occupying, using or getting their livelihood from. This class of people includes those that settle at a place on semi-permanent basis, or those settling at a place without any formal grant or authority.

PAPs classified under paragraph (i) and (ii) shall be provided compensation, resettlement and rehabilitation assistance for the land, building or fixed assets on the land and buildings taken by the project. The compensation shall be in accordance with the provisions of this RPF and if PAPs occupied the project area prior to the cut-off date (date of commencement of the Census).

Persons covered under sub-paragraph (iii) above are to be provided with compensation for the improvements on the land. In addition, they have to be given the necessary assistance to satisfy the provisions set out in this Project, if they occupy the project area prior to the established cut-off date.

Communities including districts, towns, neighborhoods and villages permanently losing land, resources and/or access to assets shall be eligible for compensation. Compensation to communities will include for public toilets, market places, car parks and health posts or other appropriate compensation chosen by the community. Compensation measures shall ensure that pre-resettlement socio-economic status of the communities are restored or improved.

10.3 Gaps Between Local Laws and Bank PolicyThe recent enactment of Decree 31/2012 and Diploma 181/2010 have contributed significantly to narrowing the gaps between Mozambican legislation and WB policy on resettlement. Specific aspects such as (i) the need to prepare a resettlement action plan; (ii) conducting socioeconomic studies; (iii) resettlement measures; (iv) community consultation and participation; (v) institutional and organizational framework; and (vi) monitoring and evaluation, where there were differences between the two sides, these seem to be narrowing by the above-mentioned decrees.

Significant differences remain though and these can briefly be identified in the following areas:

Planning

The major gap that existed between Mozambican laws and the WB were related with the fact of not requiring preparation of resettlement instruments as such, resettlement plans or resettlement policy frameworks (depending on scale and characteristics). This has been resolved by the recent adoption of Decree 31/2012. These instruments were already central requirements according to OP/BP 4.12 for projects where resettlement impacts have been identified. However, under OP/BP 4.12 resettlement should be avoided or minimized where possible; this is

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not stated clearly under Mozambican legislation. Even Decree 31/2012 does not clearly specify this important principle translated into a legal provision under the WB OP/BP 4.12.

Valuation of Compensation for Losses

Key differences between Mozambican legislation and to OP/BP 4.12 provisions are (i) whereas the Mozambican legislation requires compensation at “market rates”, these are in fact “defined” in the legislation for structures and crops, and any adjustment to published schedules of rates must be agreed with MICOA; (ii) under Mozambican legislation, compensation should reflect depreciation of value of structures through age. OP/BP 4.12 on the other hand states that all affected property should be compensated for at full replacement value – including all input (materials, labor, seeds, seedlings, agricultural chemicals, etc.) and all transaction costs, and that there should be no discounts for depreciation, salvaging (i.e. crops or building materials), or any other resettlement assistance provided. This seems to make sense in a situation where resettlement is involuntary and this should be pursued under the Project.

Now that Decree 31/2012 and Diploma 181/2010 have been enacted significant differences that existed between Mozambique law and WB have been solved in regard to compensation for losses.

Community Consultation, Participation and Grievance Procedures

Expropriation procedures under Decree No. 23/2008 of 1 July and Diploma 181/2010 of 1 November require issuance of formal notice to the rights holder to the asset to be appropriated by the expropriating entity. This law and its provisions are very recent. It has not been and it is not yet current practice. There are no clear mechanisms to follow it and it can take a lengthy time. The Project should abide by what is commonly accepted which consist in extensive public participation to be conducted as part of the ESIA/ESMP and now RAP processes, engagement with local authorities at Municipal, district, administrative, locality, community and neighborhood levels, giving timely notices to affected people and entities and have them signing compensation agreements.

Systems and mechanisms will be in place to ensure that in Portuguese and local languages and using local media PAPs and all other relevant stakeholders are timely informed about:

The government’s intention to acquire the land; The purpose for which the land shall be acquired; That the details of the proposal or plan for which the land shall be

acquired can be inspected at public places to be selected (e.g. SDPI, SDAE, DPCA, etc.), during normal working hours;

That any affected person may, by written notice, object to the transaction of his/her land and assets, giving reason for doing so to the PCU and project management at ZVDA/GAZEDA with copies to the Municipality/District and the local Village/Bairro Headquarters of his/her jurisdiction within 14 days of the public announcement or appearance of the notice. This system to present and circulate

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grievances will be maintained throughout all the phases of RAP implementation and monitoring.

OP/BP 4.12 requires involvement of affected people in planning and implementation of all aspects of resettlement planning and implementation – including assessment of the nature and scale of resettlement impacts, compensation and resettlement measures required including review of alternatives and in relation to selection and preparation of resettlement sites, and monitoring and evaluation. OP/BP 4.12 also requires publishing of the final resettlement plan to local people in a form that is readily understandable, and establishing of grievance mechanisms that are accessible and meaningful for project-affected people. Under OP/BP 4.12 project-affected persons can include members of host communities as well as those who are physically displaced or lose assets through land acquisition.

Although in most other aspects Decree 31/2012 has brought the two sides closer, Mozambican legislation does not recognize host communities in the same manner as OP/BP 4.12.

The table below is an attempt of summarizing the major differences between the OP/BP 4.12 and Decree 31/2012 and other relevant Mozambican legislation in regard to resettlement and compensation.

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Table 4: Comparison of Mozambican Law World Bank OP4.12 regarding compensation

Category of Affected

People/Type of Assets

Mozambican Law (Decree n.º 31/2012, of August 8) World Bank OP 4.12

Land Owners: Statutory Rights

Land for land according to the Constitution, including transfer, disturbance and one full harvest allowance (Most PAPs prefer cash)

Preference for land-for-land compensation. If not, cash at full replacement value, including transfer costs

Land Owners: Customary Rights

Land for land according to the Constitution (and use rights (DUATs) to be included). People don’t care about DUAT as there is a plenty of land

Preference for land-for-land compensation, land of equal or equivalent value. If not, cash at full replacement value, including transfer costs

Land: Tenants No compensation. Generally there are no tenants for land unless in little semi-illegal cases as the land is not negotiable in Mozambique

Compensation based on value of residual rights held under the tenancy agreement, plus disturbance allowances. PAPs are entitled to some form of compensation whatever the legal recognition of their occupancy.

Agricultural land users

Compensation in land, un harvested crops, disturbance allowance, new land preparation, seeds, sowing

Compensation in kind or cash for value of land; compensation at full replacement value for lost crops and economic trees and perennials, fully verifying or updating state lists of values, Entitled to compensation for crops, may be entitled to replacement land and income must be restored to pre-project levels at least.

Owners of structures

In-kind compensation or cash at full replacement value including labor, relocation expenses, and transfer costs. Added disturbance allowances. Entitled to in-kind compensation or cash compensation at full replacement cost including labor and relocation expenses, prior to displacement for Owners of "Non permanent" Buildings

In-kind compensation or cash at full replacement value including labor, relocation expenses, and transfer costs. Added disturbance allowances .Entitled to in-kind compensation or cash compensation at full replacement cost including labor and relocation expenses, prior to displacement for Owners of "Non permanent" Buildings

In-kind compensation or cash at full replacement value including labor, relocation expenses, and transfer costs. Added disturbance allowances .Entitled to in-kind compensation or cash compensation at full replacement cost including labor and relocation expenses, prior to displacement for Owners of

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"Permanent" buildingsLosers of livelihoods (farmers, business people, employees)

Key objective is restoration of capacity to generate incomes at least at levels prior to losses. Programs of assistance to achieve this objective. Compensation for periods of lost income.

Key objective is restoration of capacity to generate incomes at least at levels prior to losses. Programs of assistance to achieve this objective. Compensation for periods of lost income.

As stated in the ESMF, under the Project, in cases where the Mozambican regulation differs from OP/BP 4.12, ultimately OP/BP 4.12 will prevail.

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11 ELIGIBILITY CRITERIA AND PRACTICAL ASPECTS OF RAP PREPARATION AND

IMPLEMENTATION

The Project Affected Persons (PAP )are entitled to different forms of compensation for their losses with the aim of improving or at least restoring the living standards that they had before the need for resettlement became a reality.

Once the certainty of land taking is confirmed under a subproject, both the results of the socioeconomic surveys and asset inventories and respective verification will be used to communicate to local people that any land occupation within the Corridor of Impact (COI) done after the date of inventory and verification/confirmation will not be eligible for consideration under Project RAPs.

Local authorities will be monitoring the enforcement of this principle and ensuring that those disregarding it are fully aware of the implications. Thus, the date of the start of the socioeconomic surveys/asset inventories will be considered as the cut-off date for Project RAPs.

Based on preliminary assessment of the receiving socioeconomic environment as well as experience with similar projects the assets most likely to be affected under Project comprise:

Loss of land through permanent land acquisition Loss of land through temporary land acquisition Loss of houses Loss of other domestic structures Loss of commercial enterprises Loss of crops Loss of socio-economic trees Loss of non- socio-economic trees Loss of ornamental plants Loss of cultural property Loss/relocation of public infrastructure

In line with both the GOM and WB policies and regulations each category of assets will be compensated in a certain way. The descriptions below offer a practical way of dealing with compensation for the loss of these assets.

Entitlement Policies under the Project RAPsEntitlement policies under Project RAPs are set out according to the categories of impact l i ke ly to be found as described above and in light of applicable national legislation and OP/BP 4.12, namely:

Entitlement for loss of land through permanent land acquisition; Entitlement for loss of land through temporary land acquisition; Entitlement for loss of houses; Entitlement for loss of other domestic structures; Entitlement for loss of commercial structures; Entitlement for loss of crops, trees and other plants; and Project responsibilities for displacement of public/utilities

infrastructure.

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Entitlement for Loss of Land through Permanent Land AcquisitionUnder the Project the loss of land will be dealt with in accordance with OP/BP 4.12, which requires compensation for land at full replacement cost (in cash or in kind) for land that has formal title or recognized customary use rights, including for any improvements made and any disturbance or transaction costs incurred.OP/BP 4.12 also requires that particular focus be paid to land acquisition impacts on vulnerable groups – particularly, where livelihoods are land-based and in contexts of limited security of tenure efforts should be made to ensure that lost land is replaced by land. In terms of principles the following should normally be considered:

No cash payments for loss of land (or land-use) will be payable. The majority of affected households will fall under customary user

rights over their residential land and farmland. Mechanisms will have to be developed with District and Municipal Authorities to ensure that where land is lost this will be replaced within users’ surroundings, where possible immediately contiguous to their existing homesteads or farming areas or just be compensated for the loss of crops and trees and/or temporary and partial inability to use the land for cultivation.

Tenants, where they will exist, of land will get notice only. The time for such a notice will be defined in due course.

Targeted provision of advocacy to consultation with and monitoring of vulnerable households will be carried out in order to ensure that their livelihoods are sustained or restored following resettlement and that their vulnerability is not increased.

Entitlement for loss of land through temporary land acquisitionThere is no specific provision for temporary land acquisition under Mozambican law or OP/BP 4.12, although under OP/BP 4.12 all land acquisition indirectly associated with the main project (such as ancillary works) should be addressed, as well as that associated with the main project itself.Under the Project RAPs, there will be no compensation payable as such to holders of formal or customary use-rights over land to be used by the contractor. Instead, as ancillary sites are selected, the contractor will enter into negotiated rental agreements with current users. Affected parties will however be entitled to support by the Project Implementation Units in reviewing draft rental agreements to ensure that their terms and provisions are legal and equitable.

Targeted provision of advocacy to, consultation with and monitoring of any affected vulnerable households will be carried out in order to ensure that their livelihoods are sustained or restored following land acquisition and that their vulnerability is not increased.

Entitlement for Loss of HousesFor lost houses Mozambican legislation allows for cash compensation at replacement cost according to building type, materials costs, and various factors for location, quality of construction and age (i.e., depreciation).Under OP/BP 4.12 structures should be replaced (with similar or better locational characteristics or advantages to those of the previous structure and, in the case of housing, full security of tenure), or compensated for in cash at full replacement cost, including all associated

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transaction and registration costs, and taking into account market values for structures and materials. Locational advantages can include proximity to services (schools, markets, healthcare, etc.) as well as access to important social relationships and networks (including immediate and extended families, friends and neighbors, and additional wives living separately but close by in cases of polygamous marriages). These social relations are particularly important for women who typically carry reproductive (family health and education) responsibilities within the household, and who frequently need to call upon the support of relatives and friends living close by, for example for childcare or other forms of assistance, e.g. farming.

Although not a requirement as such, OP/BP 4.12 allows for improvements in housing construction quality. This is consistent with the principle of ensuring that resettlement is conceived as an opportunity to promote sustainable development and improve people’s living standards – particularly the poorest and most vulnerable.

Housing improvements can also be appropriate when project-affected people may otherwise be more likely to seek cash compensation. Experience shows that since cash can easily be diverted to other priorities (e.g. consumption, payment of debts, etc.), this can increase household insecurity – a situation that potentially and disproportionately disadvantages women given men’s traditional control over household finances and decision-making. Offering improved housing may encourage more households to accept this rather than cash at straightforward replacement (and thus lower) value – particularly where women are encouraged to participate in discussions on this the subject.

Entitlement for Loss of Other Domestic StructuresLoss of domestic structures (fences, toilets, etc.) will be compensated for in cash at full replacement cost, including material and labor, taking into account market values for structures and materials, with no deductions for depreciation or salvaging/reuse of materials, in line with the provisions of OP/BP 4.12.Any vulnerable affected houses will be offered assistance in reconstruction of replacement structures.

Entitlement for Loss of Commercial and Industrial EnterprisesIn relation to the various commercial and industrial structures that will be lost or relocated through land acquisition (roadside shops/barracas, trader’s stalls/bancas, mills, bars, etc.), OP/BP 4.12 requires compensation for (at least temporary) loss of income associated with these as well for the structures themselves at full replacement cost and any other disturbance costs, with no deductions for depreciation or permitted salvaging of materials.

(i) Cash compensation at full replacement value for all structures that will be lost – full replacement value to cover all materials, labor and associated materials-transport costs.

(ii) Preparation of new market areas – with incentives provided (i.e. rental waivers and tax breaks) to attract traders to move away from the locations from where they will be displaced.

(iii) Targeted assistance, support and monitoring to be provided to vulnerable households – as required, ensuring that their

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vulnerability is not increased.

Entitlement for Loss of Moveable Commercial BusinessesIf found they will get a notice to stop using the areas within the COI to conduct their activities and compensated for the lost opportunities.

Entitlements for Loss of Crops and TreesAs with land and structures, OP/BP 4.12 requires that crops and trees be compensated for at full replacement cost. This includes taking account of land preparation costs and (in the cases of economic trees and some perennial crops) time to production and years of remaining production.As with other livelihood activities (e.g. commercial enterprises, as described above), OP/BP 4.12 recommends investment in improved or alternative livelihood skills where agricultural land is affected – given the importance of farming to household income.

The formula for valuation of lost crops and trees has proved to be a contentious issue in Mozambique. In addition to starting from what is perceived as relatively low values one of the main problems has been the updating of the values for these assets taking into consideration inflation and other factors. This has led to the adoption of a diversity systems and procedures by different entities (investors, consultants, etc.) to deal with the subject.

Efforts will be made to update the values of the assets taking into consideration their current market values.

Project Responsibilities for Relocation of Public Utilities and ServicesIn this particular case public infrastructure located within the COI are likely to include sections of roads, electricity and communication poles, electricity transformation centers and public squares.

Relocation and Compensation of BillboardsPrivate sector companies that own billboards will be notified of project objectives and be involved in discussions and actions aimed at finding the best ways of harmonizing their assets with the project and where relevant they will be compensated.

RAP Entitlement MatrixIn summary the RAP Entitlement Matrix generally foreseen under this RPF is given as a table overleaf.

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Table 5: Entitlement Matrix (Summary)

Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

GroupsLoss of land through permanent land acquisition

PAPs holding title or traditional rights to land located in the COI

Provision of equivalent land within each PAP’s village – where possible contiguous with their existing field(s) and/or cash compensation, taking into account market values for the land, where applicable.

TBD Guidance or advocacy (where required/sought) in identification of suitable replacement land within village/bairro to ensure appropriateness.

Targeted offers of advocacy in identification of suitable replacement land within village to ensure appropriateness.

Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Tenants of land located in the COI

Cash compensation for lost crops and opportunities and/or land replacement. Targeted assistance for livelihood restoration

TBD TBD Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Free-users of land located in the COI

Cash compensation for lost crops and opportunities and/or land

TBD TBD Targeted consultation/ monitoring to ensure livelihoods sustained/ restored

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupsreplacement. Targeted assistance for livelihood restoration

and vulnerability not increased.

Loss of land through temporary land acquisition

PAPs with title or traditional rights to land subject to temporary acquisition

Rental of land by contractor based on market prices (negotiated agreement).

TBD TA to review rental agreements to ensure legal/ equitable

Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Tenants of land subject to temporary acquisition

Rental of land by contractor based on market prices (negotiated agreement).

TBD TBD Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Free users of land subject to temporary acquisition

Rental of land by contractor based on market prices (negotiated agreement).

TBD TBD Targeted consultation/ monitoring to ensure livelihoods sustained/restored and vulnerability not increased.

Loss of houses

Owners of houses located in the COI

In-kind replacement

OR Cash

compensation at

Lump sum allowance to cover removal/relocation costs based on

Building materials may be salvaged from old structures.

Prioritized in provision of resettlement/moving assistance and other measures.

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupsfull replacement cost based on replacement value (no discount for depreciation), and taking into account market values for strucutres and materials.

Where possible, replacement houses to be located within boundaries of existing homestead.

Where not possible for replacement houses to be located within boundaries existing homestead, suitable resettlement land to be identified and prepared within existing village or district.

formula: weight x Kilometer x Cost/kilometer. Transport allowance

Cash payment as disturbance allowance

Encourage contractors to employ PAPs in construction of any replacement houses, or in preparation of resettlement sites

Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Tenants of houses Compensation for Transport Offer of in-kind

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groups(and any associated ancillary facilities) located in the COI

loss of house will be to owner.

Tenants will receive lump sum amount as compensation for lost business opportunities

allowance assistance in identifying replacement house.

Targeted consultation/ monitoring to ensure livelihoods sustained/ restored and vulnerability not increased.

Loss of other domestic structures

Owners of ancillary domestic structures (kitchens, ablution facilities, walls/fences, porches, granaries, etc.) located in the COI

Cash compensation at full replacement cost based on replacement value (no discount for depreciation), taking into account market values for structures and materials.

TBD Building materials may be salvaged from old structures.

Cash payment for replacement cost allowance

Offer of in-kind assistance for reconstruction of replacement domestic structures.

Targeted consultation/monitoring to ensure livelihoods sustained/restored and vulnerability not increased.

Loss of commercial enterprises (mostly informal)

Owners of barracas, stalls, etc. located in the COI

In-kind replacement

OR Cash

compensation at full replacement cost (no discount for depreciation),

Lump sum allowance to cover removal/relocation costs based on formula: weight x Kilometer x Cost/kilometer.

Cash payment as disturbance allowance

Cash payment for loss of earnings (where owner is also the enterprise

Targeted resettlement/moving assistance and other measures.

Targeted consultation/monitoring to ensure livelihoods sustained/restored

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupstaking into account market values for structures and materials.

Where possible, replacement structures to be located within boundaries of existing property

Where not possible for replacement structures to be located within boundaries existing property, suitable resettlement land to be identified and prepared within existing village or district.

operator22) If not, the enterprise operator, this allowance is not paid.

Building materials may be salvaged from old structures.

Suitable site for reestablishment of enterprise to be offered.

Assistance in obtaining any required legal registration and documentation at new site (licensing, etc.).

Encourage contractor to employ PAPs

and vulnerability not increased.

Tenants of TBD TBD Cash payment Targeted 22 The owner of a barraca and the proprietor of the enterprise within it may not necessarily be the same person.

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupsbarracas, stalls, etc. located in the COI.

for loss of earnings.

resettlement/ moving assistance and other measures.

Targeted consultation/ monitoring to ensure livelihoods sustained/restored and vulnerability not increased.

Proprietors of mobile enterprises, e.g. tables or on the ground.

No compensation, for loss of mobile enterprises. Permission to move tables, etc, to sites where they can conduct business.

Owners/managers will get a notice to stop using the COI to conduct their businesses

Loss of crops Owners of crops located in COI

Cash compensation for season of crops based on adjusted price tables from DNSA, taking into account market

NA Targeted assistance to resume agricultural production in the new land

Offer of in-kind assistance for land-preparation (including payment of wages at market rates for people employed).

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupsvalues for crops. Targeted

resettlement/ moving assistance and other measures.

Targeted consultation/ monitoring to ensure livelihoods sustained/restored and vulnerability not increased.

Loss of economic trees

Owners of economic trees located in COI (e.g. cashew, mango, banana, guava, sisal, jatropha, etc)

Cash compensation for replacement seedlings/saplings plus cash compensation for value of lost production based on adjusted price tables from DNSA, taking into account market values for trees.

NA Targeted assistance to resume agricultural production in the new land

Targeted consultation/monitoring to ensure livelihoods sustained/restored and vulnerability not increased.

Loss of non-economic trees

Owners of non-economic/non-edible trees located in COI (e.g. acacia, eucalyptus)

Cash compensation to cover cost of replacement based on adjusted price tables from DNSA,

Cash payment for replacement cost as disturbance

Targeted assistance to resume agricultural production in the new land

Targeted consultation/monitoring to ensure livelihoods sustained/restored and vulnerability not increased

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Project Impact Affected Population /

Entity

Asset Compensation Transport allowance

Other Compensation

Measures

Additional Provisions for Vulnerable

Groupstaking into account market values for trees.

allowance

Loss of ornamental plants

Owners of ornamental gardens on COI

Cash compensation

.NA Targeted assistance to resume agricultural production in the new land

Loss of cultural property

Cemeteries located in the COI.

Cash compensation, based on negotiations with local communities.

TBD

Loss/relocation of public infrastructure

Power lines, telegraph poles; fiber-optic; telecommunications cable, water valve boxes, road signage, post boxes, etc.

PCU/ZVDA/GAZEDA will coordinate with relevant Government institutions.

TBD Consultant to facilitate communication and coordination between parties as required.

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12 METHOD FOR VALUATION AND COMPENSATION FOR LOSSES

Methodologies for calculating compensation that should be applied consistently to all people affected by the project in order to protect the Project developer from unjustified and exaggerated claims. This is an area usually open to dissent and disagreements and should be tackled with care and much objectivity as possible.

As already explained, in Mozambique the resettlement action is "based on a combination of a variety of laws and regulations as well as on the creative use of the guidelines of the main funding agencies for development, such as the World Bank, African Development and other agencies and institutions related to development such as IFC (International Finance Corporation), and others. This extends to the valuation of assets of the people and entities affected by the project such as infrastructure, farmlands, crops, trees and others. All of these should be adjusted to the specific conditions existing on the ground.

The existing laws and regulations do not provide concise answers and are open to different forms of interpretation which make them very difficult to use and develop common acceptance.

As a way of overcoming the lack of updated tables for calculating the values of lost crops and trees, based on MINAGRI’s 2010 tables, price adjustments taking into account inflationary trends will be adopted.

In the absence of specific and official guidelines for the valuation of infrastructures common practice has been to use values calculated by engineering/consultancy companies in the construction sector to carry out this valuation.

Under the guidance of the Social and Environmental Safeguards Specialist and Management Units at ZVDA/GAZEDA will hire experienced consultants to assist in the calculation of costs for all categories of affected assets including intangible assets.

Salvaging parts of the affected assets and depreciation will not be discounted from the value to be paid to the PAPs.

Principles to be followed include: That the affected families agree with methods of assessment and

valuation, deeming them fair and adequate. This should be established at the start of the process through consultation at community level;

The compensation level will be sufficient to enable people to restore their productivity and standards of living after compensation/resettlement;

Compensation payments will be made before assets are acquired for the project development and prior to resettlement;

Compensation payments will not be made in any way that puts the receiver in a position of insecurity. It is preferable to make payments through a post office, bank or other recognized institution;

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Local currency payments should take local currency fluctuations and inflation into account using a correction index.

All compensation agreements should be recorded and signed with local witnesses as well as the signed verification of the local authorities. Copies of these documents should be kept by the affected family and ZVDA/GAZEDA management for a period not shorter than five years.

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13 INSTITUTIONAL FRAMEWORK

The relatively complex issues to be addressed call for a well thought institutional arrangement to conduct the resettlement process. Decree 31/2012 of 8 August, requires a Technical Committee for Monitoring and Supervision of Resettlement to be formed at relevant level (e.g. district/municipality) to manage the entire resettlement process

The Technical Committee for Monitoring and Supervision of Resettlement should include the following representatives:

A member of the land use planning sector; A member of the local government A member of the public works and housing sector A member of the agriculture sector A member of the project related sector (in this case would be for

example in the water supply, roads and agriculture sectors) A member of the Provincial Government A member of the District Government.

As recommended by the above-mentioned decree whenever necessary representatives of entities that by their nature and position can be helpful in dealing with various issues of resettlement in a specific context must be invited to join the Technical Committee for Monitoring and Supervision of Resettlement. In this case these can include but not be limited to:

MPD/DNSP DNAIA DPCA in the project area PCU RAP Adviser and ZVDA/GAZEDA Project Management RAP consultancy companies to prepare RAPs RAP Implementation Service Provider Relevant district and municipal directorates (e.g. land, planning,

infrastructure development, agriculture, education, health, women and social affairs, environment)

Local and community authorities such as Grupos Dinamizadores, Chefes de 10 Casas, Traditional Leaders,

Representatives of the project affected people (PAPs) Affected public entities (e.g. EDM, CFM, TDM, Municipalities) The Construction Contractor

The process should be practical, whilst still being adequately inclusive and participatory. Roles and responsibilities amongst the various parties will need to be clearly defined and articulated. The general distribution of responsibilities should be as follows:

The ESSS in Tete and Nampula in coordination with the project managers will oversee and manage the process. MPD/DNSP and the PCU will be responsible for policy issues, consultation and representation and for providing direction to the entire process;

DNAIA and DPCA will ensure that the ESIA/ESMP and RAP processes are followed adequately in line with the country’s legislation and accepted traditions;

Consultants hired to formulate RAPs will provide professional and technical services

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RAP Implementation Service Provider will work towards strengthening the participation of all entities involved and ensuring that the process is facilitated and managed adequately;

District and Municipal, including sector authorities at these levels will ensure that RAP activities are integrated and harmonized in urban and district planning and development;

PAPs and their representatives will ensure that their voice and genuine interests and concerns are adequately considered in all phases of the process; and

Other affected entities (public utilities) will be responsible for collaborating with the developers to ensure that their contributions mainly in the relocation of affected utilities are timely and smoothly done.

Due to limited capacity to carry out all the activities around ESIA/ESMP and RAP particularly at the district and municipal levels there will the need to identify capacity building needs and design respective interventions to develop the necessary skills among institutions and staff. The Project will make resources available to accommodate the satisfaction of this important requirement.

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14 RESETTLEMENT MEASURES

Compensation approachIn line with the entitlement matrix the different PAPs under this Project RAPs will receive the following forms of compensation for their lost assets:

Loss of land through permanent land acquisition: PAPs under this category will only be compensated for lost crops and where possible provision of equivalent land within close reach of each PAP’s residential area and possible assistance for livelihood restoration.

Loss of other domestic structures: Cash compensation at full replacement cost based on replacement value (no discount for depreciation). Where possible or required, replacement and/or assisted substitution of what will be affected within the boundaries of existing homestead. Building materials may be salvaged from old structures without discount in the compensation value. Cash payment for replacement cost as disturbance allowance. Targeted consultation/monitoring to ensure livelihoods are adequately sustained/restored, money is properly used and vulnerability is not increased.

Loss of commercial enterprises (i.e. barracas, kiosks, stalls, etc. located in the COI): Cash compensation at full replacement cost (no discount for depreciation) for owners that might express such preference. Replaced structures to be located within the boundaries of existing property and where not possible for replaced structures to be located within boundaries existing property, suitable resettlement land to be identified and prepared within district/municipality boundaries and as close as possible to current location of the infrastructures. Lump sum allowance to cover removal/relocation costs. Cash payment for replacement cost as disturbance allowance plus cash payment for loss of earnings. Assistance in obtaining any required legal registration and documentation at new site (licensing, etc.). Targeted resettlement/moving assistance and other measures and targeted consultation/monitoring to ensure livelihoods are adequately sustained/restored and vulnerability is not increased.

Loss of crops: Cash compensation for 1 season of crops based on average value of principal crops grown on affected land (area lost x yield) and average prices over last three years’ production, with no discounts for input costs (seeds, chemicals, labor, etc.) or salvaging from current crop. Targeted consultation/monitoring to ensure livelihoods are sustained/ restored and that vulnerability is not increased.

Loss of economic trees by private owners: Cash compensation for replacement seedlings/saplings plus cash compensation for value of lost production (based on average yield, age and remaining productive years of tree). Targeted consultation/monitoring to ensure livelihoods are sustained/restored and that vulnerability is not increased.

Loss/relocation of public infrastructure (power lines, telegraph poles, fiber-optic telecommunications cables, water valve boxes, road signage, post boxes, etc.): PCU/Project Managers in Tete and Nampula will coordinate with relevant Government/public institutions to devise the best

79

ways of replacing public infrastructures. Efforts will be made to avoid having to remove these infrastructures, with measures that include the adoption of specific technologies (i.e. intensive labor in some sections to open trenches), where feasible.

At the center of compensation lies the provision of the means to each of the affected households and other entities in order for them to restore their lost assets. The value of the replacement should correspond to the market value of the affected assets. However, the process should not lose sight of the fact that the ultimate objective of all actions will be to ensure that households and institutions affected by subprojects improve their living standards or that at least they maintain the living standards that prevailed before project commencement.

The following should form the backbone of all the actions that will have to be considered to conduct the compensation process:

Compensation should be done and completed for all assets before the beginning of any works;

Using the RAP database and the agreed compensation values, where these were concluded, payment should start as soon as possible (within the first weeks into RAP implementation);

Where applicable (for the households that may opt for the replacement of their affected assets) provide assistance to rebuild affected infrastructures;

Ensure that the fixed vending stalls and kiosks and other important businesses are compensated/substituted/relocated in such a way that there is no disruption of local markets;

All the households that will lose land for cultivation need to be assisted by RAP/ZVDA/GAZEDA in collaboration with local authorities to timely identify and carry out basic preparation of the new land areas (clearing, demarcation, water management facilities, etc.);

All the affected households need to be timely informed about the overall project schedule and particularly the various milestones with direct implications in their livelihoods. Among others, this should focus on providing relevant information and other practical directions to all the PAPs.

Important Issues and Suggestion:It will be fundamental to work towards the creation of awareness towards the need for the households who will receive compensation money to use it for the purpose that it is designed for. The ESSS and the district authorities (SDPI, SDMAS, SDAE, etc. should embark on targeted education/information campaigns to sensitize PAPs and particularly women an=bout the importance of adequate use of resources. Experience shows that under similar circumstances there is often the risk of certain beneficiaries using that money for other purposes that may not necessarily add value to the family and community life (e.g. alcohol and other negative practices) and consequently impoverish the families and the communities.

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15 COMMUNITY PARTICIPATION AND STAKEHOLDER INVOLVEMENT IN PLANNING,

IMPLEMENTATION, AND MONITORING

In line with RAP principles and guidelines community consultation and participation should be at the centre of the entire process as a way of providing an opportunity for all relevant stakeholders and particularly affected households and communities to get informed about the project. The process is also designed to instil a sense of ownership for the project and to provide an opportunity for all concerned parties to present their views and interests and expand options for dealing with sensitive matters.

The participatory and public involvement principles have already been present in the formulation of the ESMF/PMP and this RPF. As a matter of fact, as part of the formulation of these documents, in addition to contacts with central level institutions in Maputo city, the districts of Nampula City, Nampula Rapale and Mecuburi, in Nampula province, Moatize, Mutarara and Tete, in Tete province as well as Morrumbala in Zambezia province were visited between 23 and 26 October 2012 for reconnaissance and preliminary assessment of the field conditions and initial public consultation with local stakeholders. During the final stage of project formulation and after clarification of its initial geographical boundaries and general orientation the districts of Nampula city, Nacala Porto and Nacala-a-Velha in Nampula province and those of Tete City, Angonia, Tsangano and Macanga, in Tete were visited from 17 to 22 January 2013. The latter visit was aimed at presenting to and getting feedback from main stakeholders on project’s structure and contents and the impacts that it is likely to be associated with as well as ways of dealing with its different aspects. Annex 6 of the ESMF presents a summary of the main issues that come to light during the consultative process.

As a way of meeting the requirements of the national and World Bank ESIA/ESMP and RAP laws, regulations policies and guidelines the subsequent phases of the Project should continue to make concerted efforts to derive benefits from public consultation and involvement. The following should be considered during the main phases of the RAP process:

RAP Preparation

RAPs under the Project will have benefited greatly from the public participation process as many stakeholders have already suggested useful ways of tackling the various problems that may arise during the ESIA/ESMP and RAP processes.

Other privileged occasion to be adequately used to keep PAPs informed and get their views is during the socioeconomic surveys that will lead to the preparation of RAP documents. The Consultants responsible for RAP preparation, in collaboration with the Developers and District/Municipal authorities, should be given the responsibility of contacting all the relevant Bairro and Neighbourhood (chefes de 10 casas) authorities in the project area to provide general information about the Project, its specific subprojects and to prepare the households and other stakeholders to collaborate with the project.

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The questionnaires to be used for the data collection should include a briefing on the project background and specific elements of the subprojects at hand.

RAP Implementation

It is important to include the affected communities as integral part of the resettlement plan. Therefore, communities must have their own representatives, who will be part of the Resettlement Committees (RC) in representation of all relevant clusters of PAPs. Community leaders shall get involved in the resettlement process in order to integrate community wishes and institutional arrangements to reach agreements.

The community management bodies will be responsible for: Participating in resettlement/compensation monitoring Receiving and giving advice on grievances and play an active role in

grievance redress Providing assistance to families that will be affected and rebuild

their lost assets:

Each Committee shall be organized and all contacts with affected families shall be made through these organizational structures.

Communication

There will be a need to ensure that a practical communication system is established in order to strengthen the ability of all affected people to articulate, disseminate and make their own decisions. On the other hand it will be necessary to create conditions to help individuals and communities to accept the eligibility criteria and rules that will be agreed upon, in a transparent way.

The main social groups to be targeted will be: Those that will be compensated in cash Those that will have their assets substituted The vulnerable households that may be identified in the course of

RAP implementation

In order to empower the communities and the affected households, the communication systems to be adopted should embrace the “rights base approach”. NGOs and other entities with experience in this area should be engaged to promote it.

Communication should be conducted in different ways and using different methods as found fit for each case and circumstance, such as:

General meetings with groups of affected people; Focus group discussions involving mainly women, men, the youth,

business people, etc.

Each and every meeting should be properly documented. The minutes of such meetings should, among other aspects, contain:

82

(i) Date(ii) Venue

a. District/Municipality b. Administrative Post c. Locality d. Village/Bairro

(iii) Summary of the main issues presented during the meeting(iv) Summary of the main issues presented by the participants

(Obs. all the concerns and interests should be recorded)(v) List of participants including the names and position of the

organizers as well as contact details of all who attended the meeting.

Meetings should be conducted in both languages, Portuguese and local languages.

Other means of communication should also be used to disseminate information and all different kinds of instructions to affected people. These should include but not be limited to:

Radio – national, provincial and community Television – national, provincial and community Newspapers and news bulletins – national, provincial and community Leaflets Letters Word of mouth Etc.

Communication material produced specifically to foster RAP interests should be circulated in Portuguese.

Throughout RAP implementation it will be fundamental to bear in mind that institutions in Mozambique in general are weak and that these weaknesses will have a bearing in the entire process in one way or the other. Government/municipal institutions have weak capacity to deal with these additional tasks. They have limited human, material, financial and technological resources at the same time that they are overwhelmed by a multitude of other priorities.

Sometimes corruption hampers service delivery and accountability. This is further compounded by weak demand at community level, where vulnerability, dependency, cultural constraints and low levels of social capital, prevent poor people and their representatives from demanding their basic rights.

The involvement of external organizations with a strong track record of addressing the above-mentioned issues will be fundamental. The “rights based approach” to education/capacity building should be at the forefront of the entire process. Local people and their organizations need to be empowered to know and understand their rights and be provided with adequate communication channels to foster their legitimate interests.

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16 GRIEVANCE REDRESS MECHANISM/ PROCEDURES

Given the complexities and sensitivities involved in resettlement, it is not unusual for grievances and disputes to occur during planning and implementation. Typically grievances will be concerned with compensation entitlements (whether or not affected assets or their owners or users were correctly identified (if at all) or valued, etc.), but can also reflect concerns regarding process or transparency of implementation (for example, whether households were consulted adequately regarding resettlement options, or given fair access to livelihood restoration training program).

As such, it is essential (and a requirement of OP/BP 4.12) that all resettlement projects incorporate a Grievance Redress Mechanism – and one that is accessible, free, easily understood, transparent, responsive and effective, does not restrict access to official grievance channels (such as the courts including traditional courts), and causes no fear of negative consequences for its recourse amongst users.

The Grievance Redress Mechanism to be followed under the Project will adhere to the following general aspects:

Registering and addressing grievances; Mechanisms for appeal; Provisions for approaching civil courts if other options fail.

The objective is to respond to the complaints of PAPs in a fast a transparent manner. It is believed that the proposed institutional arrangement for subprojects under this project will ensure that PAPs have avenues for presenting and redressing their grievances related to any aspect of the RAP.

The process and procedures should be structured as follows:

General Principles

The general rule is that all grievances related with non-fulfilment of contracts, levels of compensation, or seizure of assets without compensation should be brought to the attention of relevant officers and dealt with.

Communication should be done in relevant languages mainly (for verbal communication mainly under the Project RAPs, written material will be only in Portuguese) and Portuguese. General grievance forms to be used should be prepared by Project Implementation Units and made known and available to all potential users, although people should also feel free to use their own grievance documents at wish.

At the grassroots level, mainly bairro and neighbourhood the country does not have unified structures to manage common matters affecting those who live there. What is a fact is that in all cases there is always some form of organization and/or representation of the households by entities such as the “Heads of Ten Houses” (Chefe das Dez Casas), “Grupo Dinamizador”

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Secretaries, Traditional Leaders, Religious Leaders, etc. who represent people living within certain jurisdiction. Depending on the specific cases, these should be chosen to organize and represent the households throughout the RAP process and particularly during the presentation and redressing of grievances. They should by themselves and/or assisted by other people be able to carry out all the secretarial work involved in the process, such as preparing/writing the grievances where needed, collecting them, filing, sending, translating, etc. Where affected people/households/ entities want to handle the whole process by themselves they should be allowed to do so. Representation may be the best approach but it should not be imposed.

The following stages and procedures are suggested for the process:

Stage 0:Potential PAP grievance documented in the appropriate form to be provided by Project Implementation Units; if during the process it appears that the PAP did not understand the entitlement, this can be explained. The Project Management (PCU, ZVDA/GAZEDA) should not discourage the filling of a grievance. The grievance will be captured in the Grievance/Issues Register.

Step 1:Depending on the nature and characteristics of the issue at stake the Resettlement Committee (RC) makes first judgment to accept or reject a grievance. If accepted the RC recommends a final solution.

Step 2:If the aggrieved person is not satisfied with Stage 1 decision he/she shall forward the case to the Chefe do Posto Administrativo with a preliminary report prepared by Project Implementation Entity. The report should contain the details of the grievance and hearing date and decision of the resettlement committee.

Step 3:If the PAP is still dissatisfied with the decision taken after Stage 2, he/she shall forward the case to Technical Committee for Monitoring and Supervision of Resettlement. The grievance shall be forwarded with all the documented details of the case to date.

Step 4It is assumed that all cases shall be solved at Technical Committee for Monitoring and Supervision of Resettlement level. However, there are cases that may remain unresolved. For such cases, the PAP shall have the option to refer his/her case to the District Administrator/Mayor of the Municipality for final amicable solution.

Step 5If no amicable solution is reached in Step 4 the PAP will have recourse to the District/Municipal courts as a last resort.This is a stage that although should always be made available. It should be discouraged by all positive means such as timely communication and open negotiation. The institutional arrangement and the principles of community consultation and participation that are intrinsic to the RAP are designed to

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allow for the process to detect and deal with the problems in a timely and satisfactory manner for all parties concerned.

It is strongly advised that all measures be put in place to ensure that solutions are reached by consensus based on negotiation and agreement.

Detailed procedures to redress grievances and appeal process should be disseminated among PAPs who should be empowered to use them as they find it fit. The empowerment process described in previous chapters should, among other aspects, focus on these procedures. The procedures should be disseminated during all phases of the RAP.

17 ARRANGEMENTS FOR RESETTLEMENT FUNDING

Project’s Component 4 (Project Implementation (US$8.0 million) will, among other, fund the safeguards management including training, preparation of RAPs, ESIAs and ESMPs and monitoring of implementation of safeguards instruments as well as impact evaluation in the many areas in which the project will be active.

Based on the Project structure and contents and on what is known about the receiving social environment the need to relocate people and their assets will be minimal. Where subprojects will require such to happen this will be condensed in abbreviated resettlement action plans (RAP), which are acceptable for both the GOM and the WB when resettlement does not affect more than 200 people.

Project funds to be managed by PCU and ZVDA/GAZEDA will be used to cover preparation, management and supervision costs. They will also cover the costs of hiring facilitators of resettlement implementation, monitoring and all compensation and mitigation measures but not for the payment of cash compensation.

The initial budget lines and estimate of amount necessary to cover this particular component of the Project is presented in Chapter 19, below.

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18 MONITORING AND EVALUATION ARRANGEMENTS

Where relocation will happen, the restoration and normalization of PAPs livelihoods may be a slow process. It may take a few months or more to reach what can be considered the final level of stability. It is to be expected that the first 6 to 12 months of implementation of each RAP will be of significant changes. It is during this stage that adequate and prompt interventions to correct any deviations will be mostly required. The remaining time may require less attention. But it will be crucial to have systems and procedures to ensure that the ultimate objectives of the RAP are attained.

A participatory monitoring and evaluation process will be fundamental during the course of Project implementation. This process should be conducted in such a way as to enable all interested parties and particularly the beneficiary households and communities to get involved in all aspects of planning, monitoring and evaluation. The process should be as simply as possible to enable all stakeholders to regularly reflect on progress at each stage and identify what needs to be done to ensure that the Project interventions benefit all and do not impact negatively on the lives of directly affected people and other people along the directly affected areas.

Monitoring and Evaluation (M&E) is an essential part of RAP implementation in order to measure actual performance against what was planned according to a number of selected indicators – in terms of outputs and outcomes and particularly in relation to livelihoods and living standards of project affected people.

The following aspects of M&E will be important: RAP Performance Indicators; Internal performance monitoring process; Feedback from internal monitoring to implementation; External Monitoring; Final External Evaluation.

RAP Performance Indicators

RAP Performance Indicators will be derived from the socioeconomic baseline survey and will form the basis on which RAP performance will be measured; any changes in indicators (qualitative or quantitative) will be assessed to identify the extent to which these changes have been caused by resettlement or come as a result of other factors. In many cases the link is direct and obvious (such as in number of people who opt for replacement housing rather than cash compensation or number of people provided with livelihood restoration training). Changes in other cases (such as changes in income or educational levels or aspirations of women) may require further investigation to attribute causality.

Specific forms/tables will be prepared for each RAP/subproject setting out a number of indicators against which RAP performance can be monitored and assessed – for the purposes both of internal and external monitoring.

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The results of the socioeconomic surveys that will have led to the formulation of the RAP will be used as baseline indicators to objectively measure progress as the implementation of RAPs evolves. The findings of different RAPs on the number of households and people that will have to be compensated and will have their affected assets substituted, as well as the principles to be followed and the quality of livelihood restoration will form the basis of the entire process.

Internal Monitoring

Quantitative analyses will use the database containing information on each and every family that will have been prepared as part of each RAP. The database or just parts of it will continue to be used throughout implementation to regularly generate reports on progress made by each household and the each RAP in terms of:

Assets status, occupation and living conditions and supervision of implementation of compensation and substitution as agreed upon with the affected households;

Monitor whether the implementation of all aspects is progressing as provided in each RAP and/or its updated version;

Monitor the timely and sufficient disbursement of funds; Investigate and assess each case of complaint and grievance; Monitor and assess the quality of life restoration and progress

towards poverty alleviation and improvement of living standards.

Qualitative analyses will draw from community level review/reflection on progress, matters arising and identification of issues to be dealt with as times progresses. Selected people at community level will take and prepare minutes during community meetings and these will be used by project management to carry out relevant actions. Forms and templates for preparing these reports should be prepared by the Consultant and TA in general, under PCU and ZVDA/GAZEDA Project Managers’ supervision. People should receive training to make their adequate use.

The RAP/Project Implementation Entity as well as PCU and other interested parties (e.g. district and municipal authorities) will monitor project activities through visits to selected project sites using performance review checklists. Checklists will also be developed. Corrective actions will be taken immediately as soon as deviations are identified.

The above-mentioned institutions will prepare regular status quo reports using a reporting format agreed upon and performance indicators. The annual report will feed into an annual review by presenting achievements, lessons learnt and recommendations.

External Monitoring and Evaluation

Besides evaluating the regular reports (e.g. quarterly) produced by internal monitors and conduct the same king of investigation assigned to internal monitoring, the external monitoring agency will be responsible for the following:

Evaluation of inventory survey Evaluation of socio-economic project impact on the PAPs

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Supervision of the implementation of the RAPs to achieve the objectives and in particular "to improve or at least maintain the incomes and living conditions of the PAP after the resettlement/compensation

A final participatory evaluation will be conducted three months before the end of each RAP to measure outcomes and impacts. This will be done by an external team specifically hired to conduct this final evaluation process, which will focus on:

Evaluation of inventory survey Evaluation of socioeconomic impact of the RAP Ascertain the extent to which the principles stated in each RAP have

been fulfilled particularly in what concerns “improvement of living standards of the affected people or at least restoration of living standards to pre-project time”

In short monitoring and evaluation will be continuous and will focus on short and medium/long term objectives of the RAPs.

19 ESTIMATED RPF BUDGET

Below is the itemized budget estimates for implementing the RPF as well as for preparing and implementing the RAP, including monitoring, evaluation, auditing and capacity building.

Nr. Item Total Amount in US$1 Preparation of RAPs (~20 abbrev. RAPs) 200,000.002 Management organization, and supervision 50,000.004 Monitoring and evaluation 25,000.00

5 Community capacity development & resettlement facilitation

40,000.00

6 Compensation & mitigation measures 100,000.00

8 Conflict resolution solutions 35,000.00

Total 450,000.00

The estimated total cost for implementing the RPF and preparing and implementing the site specific RAPs stands at US$ 450,000.

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References

ANE/WB (2006) “Resettlement Policy Framework for the Roads Sector” (Draft). Maputo, MozambiqueCarlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008CEDSIF, (date). Terms of Reference for support to the development of SGMCM, Maio 2011. “Plano de Acção para a Redução da Pobreza (PARP) 2011-2014 – Aprovado na 15ª Sessão Ordinária do Conselho de Ministros de 3 de Maio de 2011”, Maputo, Moçambique.CNCS, 2009. “HIV/SIDA em Moçambique”, Maputo, MoçambiqueDecreto n.º 23/2008, de 1 de Julho (Regulamento de Ordenamento do Território)

Decreto 31/2012, de 8 de Agosto (Regulamento sobre o Processo de Reassentamento Resultante de Actividades Económicas)

Decreto 42/2008 de 4 de Novembro (RPAIA)

Decreto 45/2004 de 29 de Setembro (RPAIA)Diploma Ministerial n.º 181/2010 de 3 de Novembro (Ministérios para a Coordenação da Acção Ambiental (MICOA), Finanças (MF) e Justiça (MJ) (2010) –sobre “Processo de Expropriações para Efeitos de Ordenamento Territorial”).

FIPAG (2003) – “Guidance on Environmental Assessment and Management of the Project of the NWDP”, Maputo, MozambiqueFourth High Level Forum on Aid Effectiveness (HLF-4, 29 November-1 December 2011), Busan, KoreaGOM, 2005. Strategic Plan for the Environment Sector 2005 – 2015GOM, 2011. Poverty Reduction Action Plan (PARP) 2011-2014, approved May 3rd, 2011GOM, 2012. Government Five-Year Plan (PQG) 2010-2014 approved in April 2010.GOM, 2012. Simplified Matrix for Environment, 2012IFC (2002) “Handbook for Preparing a Resettlement Action Plan”, Environmental and Social Development Department, Washington, DC, USAINE (2009). “Recenseamento Geral da População e Habitação – Resultados Definitivos”, Maputo, Moçambique.Lei n.º 19/2007 de 18 de Julho (Ordenamento Territorial)Memorandum of Understanding RDE – SCC, 2011-07-05MICOA, 2007. Environmental Strategy for Sustainable Development, EADS, December 2007MICOA, 2011. “Relatório do Estado do Ambiente em Moçambique”,

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Maputo, Moçambique.MICOA, 2011. Budget summaries for PES 2011, by programme, ESPS II executing agency.MICOA/DINAPOT (2008) – “Integração do Planeamento do Uso da Terra no Processo da Planificação Descentralizada”, Maputo, MoçambiqueMICOA/INE , 2010. “Compêndio de Estatísticas do Ambiente”, Maputo, MoçambiqueMozambique Country Report, The Economist Intelligence Unit, May 2011MPD, 2010. “Report on the Millennium Development Goals”, Maputo, MozambiqueUNDP, 2011. “Human Development Report 2011, Sustainability and Equity: A Better Future for All”, 1 UN Plaza, New York, NY 10017, USA.WASIS (2007) “Water Sector Services and Institutional Support Project – Resettlement Policy Framework”.

World Bank (2004) “Involuntary Resettlement Source Book – Planning and Implementation of Development Projects”. Washington, DC

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Annexes

A

Annex 1: Project Screening Form

1. NAME OF THE APPSA PROJECT COMPONENT:___________________________

New

Rehabilitation

Expansion

2. DPA/SDAE CONTACT PERSON:___________________________________________________

3. LOCATION:

(Map attached with the location of the activity).

4. ZONNING:

Residential zone Savanna Wetlan

d Green

Free areaSemi-urban areaInformal settlement

5. PROJECT DESCRIPTION:

Brief description of the project (site area, project capacity, size) Estimated of resettlement of families/households:_____

Project Affected Persons: Crops:___________

Project Affected Persons: Trees:___________

Project Affected Persons: Ancillary structures: ___________

Project Affected Persons: Commercial structures:___________

Project affected sacred sites: Cemeteries______________

Project affected sacred sites: Graves______________

Project affected wells:______________

6. LAND OWNERSHIP:____________________________

7. LOCATION ALTERNATIVES:____________________________

a) Land use in the site and surrounding areas

B

Site area Surrounding area

ResidentialCommerce and ServicesIndustryAgricultureLeisure & SportSchoolHealth CenterHeritage or sacred site

b) Main existing social infra-structures in the surrounding area:

SchoolHealth PostWater well with PumpLatrinesDrainage networkRoadElectricityTelecommunicationOther:

C

Annex 2: Preliminary Environmental Information Sheet

FICHA DE INFORMAÇÃO AMBIENTAL PRELIMINAR

1. Nome da actividade:

2. Tipo de actividade:

a) Turística Industrial Agro-pecuária Outro

Especifique

b) Novo X Reabilitação Expansão

3. Identificação do(s) proponente(s):

4. Endereço/contacto:

______________________________________________________________________________________________________________________________________

5. Localização da actividade:

5.1 Localização administrativa:

5.2 Meio de inserção:

Urbano Rural

6. Enquadramento no zoneamento:

Espaço habitacional Industrial Serviço Verde

7. Descrição da actividade:

7.1 Infra-estruturas da actividade, suas dimensões e capacidade instalada (juntar sempre que possível as peças desenhadas e escritas da actividade):

7.2 Actividades associadas:

7.3 Breve descrição da tecnologia de construção e de operação:

7.4 Actividades principais e complementares:

D

7.5 Tipo, origem e quantidade da mão-de-obra:

7.6 Tipo, origem e quantidades de matéria-prima :7.7 Produtos químicos citados cientificamente a serem usados: (caso a lista seja longa deverá produzir-se em anexo)

7.8 Tipo, origem e quantidade de consumo de água e energia:

7.9 Origem e quantidade de combustíveis e lubrificantes a serem usados:

7.10 Outros recursos necessários:_________________________________________________________________________________________________________________________________________________________________________________________________________

8. Posse de terra (situação legal sobre a aquisição do espaço físico): _________________________________________________________________________________________________________________________________________________________________________________________________________

9. Alternativas de localização da actividade:

(Motivo da escolha do local de implantação da actividade e indicando pelo menos dois locais alternativos)_________________________________________________________________________________________________________________________________________________________________________________________________________

10. Breve informação sobre a situação ambiental de referência local e regional:

10.1 Características físicas do local de implantação da actividade:

Planície Planalto Vale Montanha

10.2 Ecossistemas predominantes:

Rio Lago Mar Terrestre

10.3 Zona de localização:

Zona Costeira Zona do interior Ilha

10.4 Tipo de vegetação predominante:

Floresta Savana Outros (especifique)___

A vegetação é dominada por gramíneas, pinheiros casuarinos, coqueiros e arbustos e árvores indígenas.

E

10.5 Uso do solo de acordo com o plano de estrutura ou outra política vigente:

Machamba Habitacional Industrial

Protecção Outros ( Especifique)_________________________

10.6 Infra-estruturas principais existentes ao redor da área da actividade:

11. Informação complementar através de mapas

Outra informação pertinente que julgar relevante.

Local, data (dia/mês/ano)

F

Annex 3: Status Quo of Preparation of District Land Use Plans in the Project Area (provinces)

G

Zambezi Valley

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

ZAMBÉZIA

40 1 Mocuba 2009 Namarroi41 2 Pebane 2009 Gurué42 3 Alto Molócué 2009 Lugela43 4 Namacurra 200944 5 Mangaja da Costa 200945 6 Chinde 200946 7 Morrumbala 201147 8 Mopeia 2011

Total de distritos sem Planos = 3

48 9 Gilé 201149 10 Nicoadala 201250 11 Ile 201251 12 Milange 201252 13 Inhassunge 2012

Total de Distritos Com Planos = 13Source: MICOA (2012)

H

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

TETE

53 1 Zumbo 200954 2 Mágoé 2009 Angónia55 3 Chiúta 2009 Tsangano56 4 Changara 2009 Cahora Bassa57 5 Macanga 2009

Total de Distritos sem Planos = 4

58 6 Chifunde 200959 7 Marávia 200960 8 Moatize 201061 9 Mutarara 2012

Total de Distritos Com Planos = 8Source: MICOA (2012)

I

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

SOFALA

62 1 Nhamatanda 200963 2 Muanza 200964 3 Machanga 200965 4 Cheringoma 200966 5 Chemba 200967 6 Buzi 200968 7 Maríngue 200969 8 Caia 201170 9 Marromeu 201171 10 Gorongoza 201272 11 Dondo 201273 12 Chibabava 2012

Total distritos com Planos = 12Source: MICOA (2012)

J

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

MANICA

74 1 Sussudenga 2009 Macossa75 2 Gondola 2009 Mossurize76 3 Barué 201177 4 Guro 2011

Total de Distritos sem Planos = 2

78 5 Machaze 201179 6 Manica 201180 7 Tambara 2012

Total de distritos com Planos =7Source: MICOA (2012)

K

Nacala Corridor (excluding Tete)PROVÍNCIA ORDEM TOTAL DE

PLANOSDISTRITOS COM PLANOS

ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM PLANOS

NIASSA

17 1 Muembe 2010 Mecula18 2 Lago 2011 Cuamba19 3 Sanga 2011 Nipepe20 4 Mavago 2011 Metarica21 5 Majune 2011 Mecanhelas22 6 Marrupa 2012 Mandimba23 7 Maúa 2012 Ngaúma24 8 Lichinga 2012

Total de Distritos com Planos = 8Total de Distritos sem Planos = 7

Source: MICOA (2012)

L

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

NAMPULA

25 1 Mossuril 2009 Moma26 2 Ilha de Moçambique 2008 Mongicual27 3 Nacala - Porto 2009 Eráti28 4 Angoche 2008 Memba29 5 Nacala -a- Velha 2010 Nacarôa30 6 Mongovolas 201131 7 Murrupula 201132 8 Monapo 201033 9 Nampula Rapale 2011

Total Distritos Sem Planos = 5

34 10 Muecate 201135 11 Mecuburi 201136 12 Malema 201237 13 Ribaúe 201238 14 Meconta 201239 15 Lalaua 2012

Total de distritos com Planos = 15Source: MICOA (2012)

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Annex 4. Guidelines for Site Specific RAPs(Adapted from the World Bank Operational Policies: Involuntary

Resettlement Instruments)

1. The scope and level of detail of the resettlement plan vary with the magnitude and complexity of resettlement. The plan is based on up-to-date and reliable information about (a) the proposed resettlement and its impacts on the PAPs and other adversely affected groups, and (b) the legal issues involved in resettlement. As already stated in the TORs below (Annex 10), the Resettlement Action Plan covers the elements below, as relevant. When any element is not relevant to project circumstances, it should be noted in the resettlement plan.

2. Description of the project. General description of the project and identification of the project area

3. Potential impacts. Identification of

(a) the project component or activities that give rise to resettlement;

(b) the zone of impact of such component or activities; (c) the alternatives considered to avoid or minimize resettlement;

and (d) the mechanisms established to minimize resettlement, to the

extent possible, during project implementation.

4. Socioeconomic studies. The findings of socioeconomic studies to be conducted in the early stages of project preparation and with the involvement of potentially displaced people, including

(a) The results of a census survey covering: (i) Current occupants of the affected area to establish a basis for the design of the resettlement program and to exclude subsequent inflows of people from eligibility for compensation and resettlement assistance;

(ii) Standard characteristics of displaced households, including a description of production systems, labour, and household organization; and baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the displaced population;

(iii) The magnitude of the expected loss (total/partial) of assets, and the extent of displacement, physical or economic;

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(iv) Information on vulnerable groups or persons as provided for in OP/BP 4.12, for whom special provisions may have to be made; and

(v) Provisions to update information on the displaced people’s livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement.

(b) Other studies describing the following: (i) Land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non-title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the project area;

(ii) The patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the project;

(iii) Public infrastructure and social services that will be affected; and

(iv) Social and cultural characteristics of displaced communities, including a description of formal and informal institutions (e.g., community organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities.

5. Institutional Requirements.

(a) The identification of agencies responsible for resettlement activities; and NGOs that may have a role in project implementation;

(b) Any steps proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation.

6. Eligibility. Criteria for determining the eligibility for compensation and other resettlement assistance, including relevant cut-off dates

7. Valuation of and compensation and resettlement and for losses. The methodology to be used in valuing assets and in the determination of their replacement cost. A description of the proposed types and levels of compensation. A description of the packages of compensation and other resettlement measures that will assist each category of eligible PAPs to achieve the objectives of the policy (see OP 4.12, para. 6)

8. Relocation. Alternative relocation sites considered, covering 15

a. Relocation sites, whether rural or urban, which are at least comparable to the advantages of the old sites; (b) Procedures for physical relocation under the project, including timetables for site preparation and transfer; and

(b) Legal arrangements for regularizing tenure and transferring titles to resettlers.

9. Housing, infrastructure, and social services. Plans to provide (or to finance resettlers’ provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities.

10. Environmental protection and management. An assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement).

11. Community participation. Involvement of resettlers and host communities, including

(a) (a) A description of the strategy for consultation with and participation of resettlers and hosts in the design and implementation of the resettlement activities;

(b) (b) A summary of the views expressed and how these views were taken into account in preparing the resettlement plan;

(c) (c) A review of the resettlement alternatives presented and the choices made by PAPs regarding options available to them, including choices related to forms of compensation and resettlement assistance.

(d) (d) Institutionalized arrangements by which displaced people can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that such vulnerable groups as indigenous people, ethnic minorities, the landless, and women are adequately represented.

12. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from resettlement; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms.

13. Organizational responsibilities. The organizational framework for implementing resettlement, including identification of agencies responsible for delivery of resettlement measures and provision of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies’ capacity to design and carry out resettlement activities;

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provisions for the transfer to local authorities or resettlers themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate.

14. Implementation schedule. An implementation schedule covering all resettlement activities from preparation through implementation, including target dates for the achievement of expected benefits to resettlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project.

15. Costs and budget. Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies.

16. Monitoring and evaluation. Arrangements for monitoring of resettlement activities by the implementing agency, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the PAPs in the monitoring process; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation.

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Annex 5. Outline of a Resettlement Action Plan (RAP)S/N Elements Activities1 Description

of the Project

Define the Project, and its components and the Project Site (s)Determine whether the Project will require land acquisition and relocation of personsDescribe the amount of land acquisition and resettlement requiredIdentify options of reducing amount of resettlementQuantify the options of minimizing resettlement

2 Project Objectives

Formulate the main objectives of the ProjectIdentify Specific Objectives

3 Socio-Economic Studies/Census

Carry out census of affected community/individual and their assets.Determine income levels and livelihood patterns of the affected personsIdentify alternatives of restoring income for the displaced populationDefine magnitude of the impacts with special reference to vulnerable groups( aged, HIV and other ailed persons, female-headed households, the poor etc)-Document landholding tenure system in place, lot sizes and any cultural heritages/values that may be restricted by the projectDescribe any social organizations in place that may be impactedDocument type and size of infrastructure and other services that may be impactedSummarize impacts of the project for each categories of affected groupsProvide mechanism for updating information on the displaced population

4 Legal/Institutional Framework

Define the Project affected PersonsIdentify local agencies responsible for resettlementDiscuss staffing of the Project Resettlement UnitAssess capacity of the agencies to handle the magnitude of the resettlementComply with national and local legislation on matters relating to land and environmentDescribe plan to inform the affected population

5 Eligibility and Entitlements

Set criteria for the displaced persons to be eligible for compensation and resettlementPrepare Entitlement MatrixDetermine Assistance required for resettlement

6 Compensation Assessment

Appoint Registered/District Valuer for compensation purposesCarry out consultation with affected personsIdentify and inspect affected assets for valuationProcess Valuation Report and prepare Compensation ScheduleDetermine whether additional income assistance is necessary

7 Resettlement Plan

Determine need for relocation and discuss with affected personSelect site for relocation and make arrangement for land titling in favour of resettlersIn consultation with respective District Settlement Planning Department, prepare Resettlement PlanDiscuss outsourced services if any and draw up cost implicationsEnsure Plan comply with environmental considerationEvaluate the impact of the Plan on host communityDetermine any special assistance measures necessary to vulnerable groups

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Identify risks associated with the Plan and chart out ways of overcoming themProvide information on updating of the Plan

8 Grievances Redress Mechanism

Design system for recording grievances and establish response timeDiscuss mechanism for hearing grievancesDiscuss appeal Measures

9 Organizational Responsibilities

Prepare implementation schedule indicating target dates and backstopping measuresDiscuss arrangements for coordinating agencies and other jurisdictionsDescribe measures of transferring responsibilities of resettlement sites back to respective authorities

10 Costs and Budgets

Prepare a financial plan with emphasis on responsibilities and accountabilityList sources of fundsIdentify components of the sub-project that may require additional external fundingDiscuss provisions for handling price fluctuations, contingencies and excess expenditurePrepare a template for Project Cost Estimate/budget

11 Monitoring and Evaluation

Discuss measures for external and internal monitoringDefine monitoring indicatorsDetermine mode and frequency of reporting and content of internal monitoringDiscuss feedback mechanism

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Annex 6: Summary of Main Issues from the Public Participation/Consultation Process

Summary of the Public Participation/Consultation Process

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1. Introduction

In addition to general discussions with a multitude of project interested people, during the preparation of the Project’s ESMF, PMP and RPF concerted efforts were made to get a number of well-identified stakeholders to provide elaborated feedback on a series of issues related to Project formulation, implementation and management, including environmental and social issues. Identified stakeholders cover individuals from central level institutions (e.g. GAZEDA, CFM, ZVDA, MICOA) to the provinces (DPCA and DPA) and districts (mainly district administrators and district directors of services).

The process was divided into two main phases. The first phase took place between 23 and 26 October 2012 during reconnaissance and preliminary assessment of the field conditions in order to inform stakeholders about the general project concept and get their preliminary views on a number of issues. This phase continued until the formulation of the first draft ESMF in November/December 2012. The second took place between 17 and 22 January 2013 and was aimed at presenting to and getting feedback from main stakeholders on project’s structure and contents and the impacts that it is likely to be associated with as well as ways of dealing with its different aspects.

Annex 8 of the ESMF document presents the list of people that were consulted as part of this process. The lines that follow make a summary of the main issues raised by the consulted people during the interviews and discussions.

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First Phase

Issues Categories of Stakeholders

Main Opinions Remarks

The Project as a contribution to the diversification of the economy in the Zambezi Valley and Nacala Corridor and support to the attainment of PRSP

District authorities Besides mining and transport, both the Zambezi Valley and Nacala Corridor are very rich in diversity of natural resources including water and land to sustain other economic activities including agriculture, tourism, industry, etc. and benefit a larger population basis. They should not become coal production and coal transport corridors only. In this regard, the project is welcome, it should be closely linked to existing district, and provincial strategic development plans. There is no need to start from scratch. The provinces and districts have already identified a number of projects which should be considered to be part of the Project

Provincial authorities Same as the district authorities

Nampula province highlighted the fact that Nacala Corridor is an area with a strong potential to diversify the economy by resuscitating important economic areas such as agriculture, forests, tourism, mining, etc. The province has formulated its own Provincial Strategic Plan for the period 2010-2020. The strategic document identifies the province’s potential and priority areas for investment

Nampula province provided its 2010-2020 Provincial Strategic Plan

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The Project concept is indisputably relevant at this stage of the country’s development and in light of the development trends of these two

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Issues Categories of Stakeholders

Main Opinions Remarks

clusters, i.e. Zambezi Valley and Nacala Corridor. However, in order to fully materialize the concept there is a need to mobilize much more resources. The initial amount being considered (around 100 mil US$) will not be enough. The inconveniences stemming from this limitation of resources can be offset by focusing on a compact number of areas instead of trying to cover the two regions entirely.

There is no doubt that the country needs more corridors (roads and railways) in order to take advantage of its vast and rich natural resources. The big investors behind coal and other resources only have eyes on access to the Indian Ocean, i.e. in the old East-West direction for the circulation of goods and people in detriment of other internal directions. Although not confirmed yet and at the pre-feasibility stage in most cases there are several railway lines being considered to link Tete with Mozambican ports, which will exacerbate this phenomenon. Initiatives like these are welcome in order to bring some balance and take advantage of the markets to be created by the economic boom ignited by mining in Tete.

Other issues to be taken into consideration in project design,

District authorities The Project should support the districts and municipalities in their efforts to prepare land use plans. The siting of the subprojects should be done in line with sound land use planning at

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Issues Categories of Stakeholders

Main Opinions Remarks

implementation and the local levelProvincial authorities NACentral level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The project may be associated with new challenges, as it has considerable elements of regional planning/implementation. This approach is not yet a common practice in the country. Institutions are used to plan and act following administrative boundaries defined by provinces, districts, etc. Inter-provincial and inter-district initiatives are not yet a norm. There might be the need to clearly define who does what and where. Otherwise, there could be confusion and conflicts over implementation, management, operation and maintenance of infrastructures spread over different jurisdictions.

MICOA (DNAPOT) provided the current status quo on the preparation of District Land Use Plans.

Second Phase

Issues Categories of Stakeholders

Main Opinions Remarks

On focusing on two limited growth poles of Nacala and Angonia

District authorities As a matter of fact Angonia, Tsangano and Macanga are the most endowed districts in Tete and the Zambezi Valley in general. They can form an excellent platform in the process of trying to link mega-projects with local initiatives.

Provincial authorities Linking the consumption market that is growing in Tete and Moatize with highly productive

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Issues Categories of Stakeholders

Main Opinions Remarks

areas of Tete such as Angonia, Tsangano and Macanga has been in the minds of a series of economic agents. If well managed the Project has the potential to make positive demonstrations.

The provincial government has been working on these linkages and it is now evident that there is a clear need to increase production and productivity, improve quality, introduce processing and packaging, transport, marketing and general exposure to markets

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The approach of investing the available resources only in five districts is an important step forward in terms of doing things that will be tangible. It is important that whatever is going to be done be visible and have visible impacts in order to provoke the necessary level of buy-in and have more entities interested in this concept. This is how more resources can be made available to spread the concept to other areas. Spreading few resources over a large area would be counterproductive.

From now on the project should move carefully and ensure that lessons are acquired and disseminated accordingly.

Other considerations and practical issues

District authorities The three districts of Angonia, Tsangano and Macanga have considerable agricultural irrigation experience, mainly by gravity,

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Issues Categories of Stakeholders

Main Opinions Remarks

although in some cases they adopt practices that are damaging to the environment. It is will be important to invest on demonstration, training and capacity building in order to eliminate the negative practices over time.

The three districts have been making an inventory of the dams requiring rehabilitation for agricultural irrigation (mainly Angonia and Tsangano). They have also been identifying and making inventories of areas with potential to develop irrigation schemes. PROJECT should assist in fine-tuning this work and use the existing base to get started.

While Angonia and Tsangano have been under intensive exploitation, Macanga is relatively pristine. Not much has been going on in this district and activities will have to start from scratch in many area. This can be seen as an opportunity on one hand but also as a challenge on the other.

Macanga provided a list of three (3) irrigation schemes in need of rehabilitation and six (6) new points with potential to develop such schemes. These are accompanied by a preliminary budget estimate.

Angonia made reference to the existence of six (6) small irrigation dams units territory, of which only three (3) are operational. There was also a power generating dam which is now out of

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Issues Categories of Stakeholders

Main Opinions Remarks

operation.Provincial authorities The average size of farm plots in the hands of

small commercial producers in Angonia, Tsangano and Macanga is 15 ha. Under current circumstances it will be difficult to find bigger plots.

Through Moatize, Tete province has developed considerable experience of involving the districts (through the SDPI) in the ESIA/ESMP process. Coupled with targeted capacity-building the existing experience could be replicated in the three districts in Angonia Growth Pole.

The Project should make funds available to bring SDPIs personnel to the provincial capitals to be part of the ESIA/ESMP subproject review teams.

Under the procedures in force the review of projects (i.e. subprojects) is done at the provincial level by inter-ministerial working groups. SDPI should be part of this process as the subprojects go through the various stages of the ESIA/ESMP review processes.

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The project is focusing excessively on Nacala Porto. It should consider doing something substantial in Nacala-a-Velha. There is a need to

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Issues Categories of Stakeholders

Main Opinions Remarks

consider, for example, that the water system that is going to be supported has most of its components in Nacala-a-Velha territory. It is starting to look bad that Nacala Porto is getting all the support and benefits23 while Nacala-aVelha watches. This was started by the MCC/MCA project and if nothing is done will be continued by the Project.

The suggestion of having GAZEDA managing most of the rehabilitation of the 9 km road linking the future airport to the city of Nacala Porto may need to be reexamined. GAZEDA may not have the capacity and resources to do this adequately. ANE should be given an important role irrespectively of where the funds are going to be allocated.

Construction camps for works (roads, water supply, etc.) should be provided with adequate toilet and ablution facilities. There have been negative experiences with other projects in this regard which the Project should by all means avoid

23 The water system is already under rehabilitation under MCC/MCA interventions, covering a series of components such as sources (Nacala Dam), water treatment plant, what transmission, etc.

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Annex 7. Procedures for Chance Find of Physical Cultural Resources

The below will be annexed to the contract in case there is the possibility of chance find of physical cultural resources, i.e. in most instances of construction or rehabilitation of infrastructures such as health, education, water and sanitation facilities etc.

Annex to contracts in case of potential chance find of physical cultural resources

If the Contractor discovers archaeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, the Contractor shall:

1: Excavation in sites of known archaeological interest should be avoided and as stated in annex D of the Policy, such subprojects are not eligible for funding. Where historical remains, antiquity or any other object of cultural, historical or archaeological importance (including graveyards) are unexpectedly discovered during construction in an area not previously known for its archaeological interest, the following procedures should be applied: 

(a) Stop the construction activities in the area of the chance find.

(b) Delineate the discovered area.(c) Secure the area to prevent any damage or loss of removable

objects. In cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over.

(d) Notify the supervisory Engineer who in turn will notify the county safeguard focal point to contact the responsible local authorities and the Ministry of Education and Culture immediately (less than 24 hours).

(e) The Ministry of Education and Culture will be in charge of protecting and preserving the area until deciding on the proper procedures to be carried out. This might require an evaluation of the findings to be performed by the archaeologists of the relevant Ministry of Education and Culture (within 1 week). The evaluation of the findings will take in consideration various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values as decided by the Ministry of Education and Culture.

(f) Decisions on how to handle the finding be taken by the responsible authorities and the Ministry of Culture (within 2 weeks). This could include changes in the location of the subproject layout (such as when the finding is an

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irremovable remain of cultural or archaeological importance), conservation, preservation, restoration and salvage.

(g) Construction or rehabilitation work will resume only after authorization is provided by the responsible local authorities and the Ministry of Education and Culture concerning the safeguard of the heritage.

(h) Authorization to resume work shall be communicated to the contractor in writing by the Ministry of Education and Culture.

2: In case of delays incurred in direct relation to any physical cultural resources findings not stipulated in the contract (and affecting the overall schedule of works), the contractor may apply for an extension of time. However the contractor will not be entitled to any kind of compensation or claim other than what is directly related to the execution of the physical cultural resources findings works and protections.

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Annex 8: Social Audit Document for the 400 ha of GAZEDA Land for the Nacala SEZ

Included in Component 2 Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor; Sub-component 2A: Upgrading of Nacala SEZ physical infrastructure; Minor civil and ancillary works, it is foreseen that the project will assist GAZEDA to conduct site demarcation and fencing of industrial plots for the Nacala SEZ.

GAZEDA has managed to secure land use rights (DUAT) over a plot of about 400 ha, from Nacala Porto Municipality, in the outskirts of the city, some 10 km away from the city center, on the right hand side of the road to Nacala-a-Velha. GAZEDA intends to use the plot to build an industrial park in the context of the development of the Nacala Special Economic Zone (SEZ).

During the site visit to Nacala, in January 2013, the consultant responsible for preparing the ESMF, PMP and RPF conducted a brief social audit of the area. The main findings of this exercise are summarized below:

As can be seen from the figures below the area is currently being used by local people for dry-farming. Main crops grown are maize, cassava, beans, groundnuts and an assortment of other traditional vegetables, which are basically used to supplement household food. It is estimated that there could be more than 50 households involved in the agricultural utilization of the area with each household being associated with a small portion at a time and then periodically rotating to another portion as the soil loses fertility. Most of the farmers live near the area.

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Nacala SEZ land on the left hand side of the Nacala Porto to Nacala-a-Velha Road

There are clear indications that it is farmers who have other farming areas in other places and that they use this area as part of their overall strategy of diversifying sources of income and means of production that is typical of the traditional household economy in poor rural and peri-urban communities in Mozambique. The farmers also have access to and use a variety of fruit trees scattered over their plots. The main species are cashew, mango and amarula trees.

Overview of GAZEDA 400 ha land in Nacala

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There are no buildings and no other land uses besides agriculture and particularly plant production were witnessed in the area.

The current land users do not have land titles and their right to practice agriculture there is based on customary rights. The development of the industrial park will prevent them from having access to this relatively important source of livelihood. The fencing and the demarcation and the subsequent construction of industrial buildings will complete the expropriation process and turn current land occupants into project affected people (PAPs).

The involvement of the Project in the demarcation and fencing of the area turns this particular component of the development of the Nacala SEZ into a subproject governed by the Project’s ESMF and RPF. As such and under the Project ESMF and RPF the current occupants of the land are entitled to compensation for the potential loss of land, crops and trees following what is foreseen in the RPF’s entitlement matrix. The RPF foresees that PAPs losing land and crops will only be compensated for lost crops and possible provision of equivalent land within close reach of each PAP’s residential area and possible assistance for livelihood restoration. Indications are also that at present there is still enough land to relocate the lost farms in the vicinity of the plots that are now being used. The loss of trees makes respective PAPs entitled to cash compensation for replacement seedlings/saplings plus cash compensation for value of lost production (based on average yield, age and remaining productive years of tree). Targeted consultation/monitoring to ensure livelihoods are sustained/restored and that vulnerability is not increased

The screening process foreseen under the ESMF and RPF will confirm the unavoidability of land expropriation and the need to prepare and implement a resettlement action plan (RAP) before any fencing and demarcation process is started. Main ingredients of such a plan must include an adequate, meaningful and participatory consultation with the project affected people to ensure that they fully understand the reasons for land expropriation and rights and their entitlements. The participatory and public consultation process should include and pay particular attention to women, the poor and most vulnerable groups of the affected people and subsequently the host communities. The main objective of all actions is to ensure that affected people restore their lives and where possible improve it to higher levels than those prevailing before relocation had taken place.

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Annex 4: List of Contacts

Nr Name Institution Position1 Juma Taratibo District

Administration/RibaueAdministrator

2 Armindo Gove District Administration/Rapale

Administrator

3 Hilario Anapakala District Administration/Mecuburi

Administrator

4 Constantino antonio Ribaue Municipality Mayor5 Fernando Manuel SDAE Mutarara Director6 Rogerio Ajulai SDPI Mutarara Director7 Elizabeth Lundo District

Administration/MorrumbalaSecretary Permanent

8 Felicidade Muiocha Provincial Government/Nampula

Governor's Office Nampula/ UCODIN

9 Roberto Mito Albino Agencia do Zambeze Director10 Odete Simeão CFM Project Manager11 Paulo Covele CFM GIS Technician12 Moniz Candido SDPI Morrumbala Administrator13 Isabel Senda MICOA/DNAPOT Director14 Nico Branquinho

GuerraSDEJT/Morrumbala Planning Technician

15 Tome Manuel SDMAS/Morrumbala Director16 Branquinho Ferro

NhombeGAZEDA Delegate in Nacala

17 Fidelis Ussene FIPAG Nacala Porto Financial Manager/Acting Delegate in Nacala

18 Adriando bata FIPAG Nacala Porto Water Supply Technical Officer

19 Florêncio Alves Provincial Directorate of Agriculture in Tete

Agricultural Hydraulics Officer

20 Leonardo Protássio Provincial Directorate of Agriculture in Tete

Agrarian Technician/Agricultural Services Department in Tete

21 Gerson Pedro Daúde District Services of Economic Activities Angonia

Agronomist Director of SDAE

22 Antonio Dique District Services of Economic Activities Macanga

Agronomist Director of SDAE

23 Jernonimo C. Alane District Services of Economic Activities Tsangano

Agronomist Director of SDAE

24 Hermenegildo Pacale Provincial Directorate for the Coordinationn of Environmental Affairs

Head of Environmental Management Department/Acting DPCA Director

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Annex 10: Terms of Reference for the Formulation of the ESMF, PMP and RPF

MINISTÉRIO DA PLANIFICACAO E DA DESENVOLVIMENTO

DIRECÇÃO NACIONAL DE SERVIÇOS DE PLANEAMENTO

Mozambique Integrated Growth Poles Project(P127303)

Terms of Reference for Consulting Services

Assignment title Preparation of Safeguards instruments for PROJECT: Environmental and Social

Management Framework (ESMF including PMP) and Resettlement Policy Framework Contract duration

(90 days)50 days for ESMF & PMP and overall lead

40 days for RPFPrimary

assignment location

Provinces of Tete and Nampula, and along the Growth Corridor (Tete to Nampula/Nacala )

Maputo, October, 2012

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Final-

Context and Objectives of the Assignment

The proposed Integrated Growth Poles Project (Project) is a US$100 million investment lending operation financed by the World Bank under the World Bank Country Partnership Strategy (CPS, 2012-2015). It will support the government’s strategy for inclusive and broad-based growth. The Project is expected to contribute towards supporting two of the three main pillars of the Governments Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; (ii) employment through targeted interventions to strengthen the dynamism of the private sector to drive economic growth and accelerate job creation. The project preparation is under the overall responsibility of MPD.

World Bank safeguard policies guidelines require that MPD effectively assesses and mitigates the potential environmental and social impacts of the proposed project activities. At concept note stage, it was agreed that PROJECT’s environment and social category/rating would be A, later confirmed by MICOA. Furthermore, the project has triggered the following six (06) safeguards policies, namely OP/BP4.01 (Environmental Assessment), OP4.09 (Pest Management), OP/BP4.12 (Involuntary Resettlement), OP/BP4.04 (Natural Habitats), OP/BP 4.11 (Physical Cultural Resources) and OP/BP 7.50 (Projects in International Waterways). As a result of the above, MPD is required to prepare two major standalone safeguards instruments: an Environmental and Social Management Framework (ESMF) including a Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF) in addition to a Strategic Environmental and Social Assessment (SESA) and a Comprehensive Social Impacts Assessment (CSIA).

The World Bank will support the Government of Mozambique in the preparation of the two major safeguard instruments. The primary objective of this assignment is to prepare, under two separate documents, an Environmental and Social Management Framework (ESMF) that includes a Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF). The ESMF-PMP will be prepared with the aim to effectively assess and mitigate the potential environmental and social impacts of future sub-project activities under PROJECT, including issues related to natural habitats (OP/BP 4.04) and physical cultural resources (OP/BP 4.11). The RPF will be prepared with the aim to present the basic principles and procedures to be followed when a sub-project activity is identified as having potential impacts on land rights, assets or access to assets and which will entail ceding of land and/or potential assets by affected persons or entities in return for replacements and/or other forms of restoration.

Preparing these two required standalone safeguard instruments allows both the Government and the World Bank to agree on principles and processes, so that these need not be discussed for every sub-project. It also allows project stakeholders and beneficiaries to undertake specific sub-projects without having to re-negotiate fundamental agreements on a case-by-case basis.

Scope of the Assignment

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Based on the objective of the assignment described above, the Consultants will be required to work in Maputo as well as to travel extensively to the project implementation area, namely Tete and Nampula. The Consultants will liaise with the overall PROJECT preparation team (Maputo, Tete and Nampula), technical staff from MPD, MICOA, MINAGRI/DNSA, MMAS, MIREM and other relevant strategic stakeholders at both the central and provincial levels. The Consultants will also liaise with the relevant World Bank staff and staff from other donors engaged in environment and social activities in the PROJECT area known as the Tete-Nacala Growth Corridor via Ilha de Mozambique. In fact, new interventions to be developed under the Growth Poles Project include assessment of potential tourism activities are currently being conducted in Ilha de Mocambique in Nampula. Hence, the proposed intervention for the Macuti side would promote the establishment of socially responsible and environmentally sound community based tourism activities for sustainable economic development of marginalized communities in Ilha de Mozambique. Moreover, the project will further be looking at the possibility of supporting the sustainable development of Tourism sector in the mainland of Ilha de Mozambique through financing access roads to Lumbo and Sancul (as foreseen on the Master Plan prepared under the Arco Norte project).

With a special emphasis on field work, the Consultants will interact with local actors such as NGO, SDAE extension workers and technical staff, potential beneficiary groups, and others. The desk review will include among other: environmental and social policies, strategies and approaches prevailing in the country; environmental and social analyses recently carried out under other relevant projects co-financed or not by the World Bank; Sub-project screening, approval, implementation and monitoring process (if available); review of on-going Sustainable Development (SDN) projects co-financed by the World Bank; provisions in the national laws for public consultations and participation requirements on social and environmental aspects and potential risks.

The ESMF (including a PMP) and RPF doccuments are each expected to include information on the following:

Executive Summary: A non-technical executive summary in both Portuguese and English

Project Description: Provide a brief description of the project, with emphasis on components with activities which will trigger environmental and social impacts

Impacts: Identify, assess and – to the extent possible – quantify the potential environmental and social impacts and risks in the intervention zone of subprojects

Public/Stakeholders Consultation and Participation: Bearing in mind that this is a social and environmental category A project, propose steps and timeline to ensure that World Bank requirements on public consultation and participation are being met in full. Present the outcomes of a participatory and inclusive public consultation conducted by the Consultants with various categories of beneficiary stakeholders in the selected provinces. Outline the community’s perception of/and reaction to

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the project and suggest ways of retrofitting their main views and concerns in the project design, implementation and monitoring and evaluation. Include minutes of all consultation meetings for each report, highlighting i.e. gender and vulnerable groups distribution), and describing how communities have been identified.

Public Consultation and Participation Plan (PCPP): Develop a participatory and inclusive public consultation plan that could be easily followed up at the local level for the environmental and social screening process for subprojects, as well as during the planning stages of IGP sub-project activities. As a category A project, at least two participatory public consultations with various stakeholders that include women, youth and most vulnerable groups of the project targeted communities in each province would have to be undertaken during the preparation of these safeguards instruments; one during the first phase of the preparation (between week 2 and 5) and the second one prior to the approval and public disclosure of the final documents.

Legal Framework: Review of the national laws (incl. traditional and customary practices) governing the environment and natural resources (for ESMF) and governing the appropriation of land (or other assets) (for RPF). Identify potential discrepancies between national laws (such as the Decree No. 45/2004 of September 29, 2004, and Decree No. 31/2012 of August 8, 2012) and World Bank policies (mainly OP/BP4.01, OP 4.09, OP/BP 4.04, OP/BP 4.11 and OP/BP4.12) and establish mechanisms for a converging implementation.

Implementing Agency: Identify/propose individuals/organization/agency responsible for jointly implementing the ESMF and the RPF. Assess the government’s and implementing agency’s technical and administrative capacities to manage the project’s potential environmental and social issues, and propose – as appropriate – viable mitigation measures to reinforce their technical and practical capacities in this regard, taking into consideration the relevant environmental and social policies, legal, regulatory and administrative frameworks in place.

Safeguards Policies: Review the World Bank environment and social safeguards policies including those not yet triggered by the project and make recommendations regarding their applicability to PROJECT. Recommendations pertaining to the treatment of applicable safeguards policies in the context of IGP sub-projects should also be formulated.

Public Disclosures: Bearing in mind that this is a social and environmental category A project, propose steps and timeline to ensure that public disclosures of key findings are adequately implemented, and in synch with the overall project preparation calendar.

In addition to the above, the ESMF-PMP should specifically cover the following:

Develop an environmental and social screening form (ESSF) to assist in determining potential impacts of the sub-projects proposed for funding.

Establish a process for assigning environmental and social categories to sub-projects.

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Develop an environmental and social checklist combined with relevant mitigation measures to be applied to the various PROJECT sub-projects that do not require a separate environmental and social impacts assessment (ESIA).

Establish a process for environmental and social impacts analysis (ESIA) for sub-projects requiring a separate ESIA (i.e. preparation of terms of reference, selection of consultants to carry out site specific ESIAs, public consultations and participation).

Establish a Land use screening mechanism for site specific RAPs to determine whether or not a full/abbreviated Resettlement Action Plan (RAP) will need to be prepared based on guidance and standards set forth in the RPF.

Propose institutional arrangements for the review and clearance of screening results and site specific ESIAs and/or RAPs reports, as well as for the implementation of mitigation measures, and the related participatory monitoring and evaluation.

In the context of IGP subprojects, assess the potential environmental and social impacts of pesticides usages during the agriculture campaign, and – wherever appropriate- of solid wastes during small dams and canals construction or rehabilitation activities for irrigated agro-business operations; make appropriate, implementable and manageable recommendations on how to sustainably mitigate them in a participatory manner.

Where appropriate, propose measures to deal with liquid (used oil and chemical pesticides) and solid waste during operation and/or maintenance of IGP subprojects activities, particularly with regard to agribusiness related irrigation water supply, rural sanitation and health care facilities (where adequate). General cumulative environmental and social issues, directly or indirectly related to other sectors (water and sanitation, energy, transport, etc.), are expected to be further dealt with in the proposed Strategic Environment and Social Assessment (SESA) as well as the Comprehensive Social Impacts Assessment (CSIA) studies to be launched around the same time as the ESMF and RPF.

The ESMF should, in addition to the PMP, also include a comprehensive Environmental and Social Management Plan (ESMP) for the Project. This plan should include – as appropriate – institutional arrangements, time horizons and cost estimates for the implementation of mitigation measures and the monitoring of their implementation, ESIA training provisions, and participatory and inclusive public consultations. The ESMP-PMP as well as the RAP, SESA and CSIA will later be merged with the Project Operation’s Manual.

Building upon the ESMF, the RPF should specifically cover the following:

Screening and Preparing the Resettlement Action Plans (RAPs): Describe the process for determining if a site specific RAP is needed as well as the process for preparing and approving the various site specific RAPs. Describe the process by which individual RAPs for the proposed subprojects activities will be submitted to project authorities, reviewed, and approved. Describe how entitlements to compensation will be delivered. Clearly state who will be responsible for ensuring the resettlement process is carried out as required by World Bank policy guidelines;

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RAP Implementation: Describe implementation process and mechanisms

Impact Magnitude: Estimate the magnitude of tangible impacts, population impacted, estimated period for temporary restriction to access to certain assets or income generating areas, estimated budget for replacing impacted assets, and potential challenges to project staff in implementing project activities

Compensation Eligibility and Valuation: Establish eligibility criteria; describe Government’s methods of valuing impacted assets; explain the methods used for inventorying assets, assigning values for each type of asset, and process for finalizing agreements with project affected persons (PAP).

Grievance Redress Mechanisms: Describe the mechanisms available to PAP for complaints about project impacts. Show accessibility of grievance redress mechanism (i.e. language, distance and cost) and what recourse/ appeal from local grievance may be available to PAP. Assess transparency and adequacy of grievance redress mechanism and ensure that “victims” have access to third-party appeals (freely) to ensure no conflict of interest with project activities.

Funding: Describe viable arrangements for funding resettlement compensation and replacement of impacted assets. Include estimate of overall costs of resettlement including technical training and other accompanying social measures to ensure that PAPs are “better-off” afterwards.

Participatory Monitoring & Evaluation: Provide an appropriate and transparent mechanism for effective participatory monitoring and evaluation of the implementation of resettlement operations. Describe how subprojects implementation will be effectively monitored and evaluated, and at what frequency. Propose mechanisms ensuring that participatory M&E results are successfully fed back into project implementation.

Template for a Resettlement Action Plan: Provide a generic description of the contents of individual RAPs for subprojects activities. The template should include: nature of the subproject, magnitude of impacts, baseline census of people impacted including assets impacted, socio-economic information of impacted persons, entitlements of affected people, description of resettlement sites, programs for improving, or at least restoring, livelihoods and standards of living, subproject resettlement budget, grievance redress mechanisms and implementation schedule. As stated above, like the ESMF-PMP, the RAP template will also be incorporated into the Project Operations Manual.

Expected Outputs & Deliverables 

All outputs and reports are expected to be compiled in one final report for the ESMF (that includes a PMP) and one final report for the RPF. Both reports are required to be delivered by the Consultants to MPD in hard copy (3 sets of each report) as well as in electronic form on CD-

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ROM (3 discs, each including ESMF/PMP and RPF) no later than 90 (ninety) calendar days after the signing of the contract.

All intermediary outputs and final reports should be in English with an executive summary (including main conclusions and where applicable, recommendations) for each report in both English and Portuguese language. The table herebelow provides an overview of the expected outputs for each phase, the primary work location and estimated time required for their completion.

The Consultants are also expected to be invited by the IGP project team to present the main findings of the assignment. Hence, the Consultants will be required to produce a PowerPoint presentation in both Portuguese and English summarizing the main findings of the ESMF-PMP and the RPF.

Phase Expected Outputs Primary work location

Indicative time for completion

Phase 1 : Review of the relevant documentation

Listing of the documentation reviewed

Potential lessons learned for next phases

Off-site, Maputo

3 days

Phase 2 : Rapid field assessment, appraisal, first consultations with stakeholders (incl. affected communities)+ Field assessment & preparation of draft final reports

Issues notes and minutes of meetings with various stakeholders including consultations with at least 2-3 communities per province. See also various outputs of ESMF-PMP and RPF under paragraph B Scope of the Assignment

On-site, Tete and Nampula via Ilha de Mocambique and Nacala

22 days

Phase 3 : Further field assessment and submission for review of draft final reports

Draft Reports that among others: (i) include the outputs of Phase 1&2, (ii) provides a summary account and details of outcomes of the activities carried out under Phase 2, (iii) provides detailed description of the way forward to implement the next phases, (iv) proposes a chronogram for the remaining activities, (v) proposes an outline for the ESMF-PMP & RPF reports + Review of draft reports.

On-site, Tete and Nampula (including Ilha de Mocambique and Nacala)

30 days

Phase 4: Incorporate first feedback from MPD & WB, draft final report writing,

Deliverable: Submission of draft final ESMF-PMP and RPF reports, CDROMs, revised PowerPoint presentation + Approval and public disclosure

Maputo 15 days

Phase 5: Field assessment + Second

Public Disclosure at Provincial and District levels + Further discussions

Off-site, Tete,

5 days

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phase of public consultation (2-3/Province)

with locals. Nampula or Maputo

Phase 6: Evaluating the findings and completing the draft ESMF-PMP and RPF, presentation of final main results.

Deliverable: PowerPoint presentation, Final ESMF-PMP and RPF based on the agreed draft and including all components of ESMF-PMP and RPF under paragraph B Scope of the Assignment

Maputo 10 days

Phase 7: Incorporating final feedback from MPD and WB & submission of Final Reports.

Public disclosure of all Safeguards instruments both in-country and at the InfoShop prior to appraisal.

Maputo 5 days

GRAND TOTAL 90 Days

PAYMENT SCHEDULE :

Payments will be made as follows : 40% at the launch of the consultancy ; 30% upon delivery of the Draft Reports, and the remaining 30% upon delivery of the Final Reports.

Consultant qualifications, expertise required and specific task

For this assignment, MPD is seeking to recruit one Individual Consultant with the profile here-below:

Social/Environment/Natural Resources/Agriculture or Rural Water Engineering Specialist ( Task Team Leader ) : with at least 8 years of relevant experience in sub-Saharan Africa, with an emphasis on environmental and social impacts assessments in agribusiness/ private sector development and/or rural water management, and preferably experienced with similar assignments. A good knowledge of the Mozambican agriculture sector, rural development and/or environmental issues and policies prevailing in Mozambique is highly desirable. A University degree (preferably PhD) in one of the relevant disciplines is required. Ability to communicate and write in English or Portuguese, with a basic understanding of the other language is required. Understanding/speaking a local language would be a plus.The consultant is responsible for the coordination and delivery of both the RPF and the ESMF that includes a PMP, as well as preparation of PowerPoint presentation, and related activities. In that regards, s/he is responsible for not only ensuring that the RPF links back to the ESMF-PMP, so to avoid disconnect between the 2 documents, but for the quality review of the safeguards documents prior to its submission to MPD/MICOA and the World Bank.

Overall, the consultant shall have at least 6 years of relevant experience in sub-Saharan Africa, including on community-driven or local development, with an emphasis on social impacts assessments in agriculture and/or rural water management, and preferably experienced

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with similar assignments. A good knowledge of the Mozambican rural sector and social development issues and policies prevailing in Mozambique is highly desirable.

The total number of paid days for the Team Leader for this assignment is not expected to exceed ninety (90) days.

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