July
6, 2014
Nepali
Times
ADB Kenichi - The Nepal
Country Representative of the Asian Development Bank, Kenichi Yokoyama, spoke
to Nepali Times about how to minimize obstruction to infrastructure projects
due to compensation demands.
Nepali Times:
How have some major infrastructure development projects including Melamchi been
affected by local obstruction over compensation or land acquisition?
Kenichi Yokoyama:
Compensation to affected people is usually dealt with before project
implementation starts, by providing sufficient compensation and livelihood
support. In our project portfolio, less than 10 per cent of projects have
problems on this issue at present. In the past Melamchi Water Supply Project
faced particular challenges. As water has to be diverted from one basin to
another in this large-scale project, local people felt that they were deprived.
It took years to come to agreements with the affected communities. The project
is now providing due compensation for acquired land, and various infrastructure
and livelihood programs in the Melamchi valley. Among other projects,
transmission line projects sometimes face problems, as the government’s
regulations can provide only 10 per cent of the land price for the strips below
the electric lines as usufruct, while people often demand acquiring the land.
So, would you
say this is a major deterrent to foreign investment in Nepal?
Investor confidence
seems to be gradually improving, but is still affected by political stability
concerns under the ongoing transition. There are also a range of
governance-related and labor union problems. Bottlenecks in infrastructure are
severe, particularly power and transport. Human capital is also constrained,
lacking skilled or educated laborers. Investor confidence can still be secured
if the government wholeheartedly invites and welcomes private investors of
important industries, and protects them by proactively helping them resolve any
impediments, be it labour disputes, power supply, problems on governance, etc.
Given that crippling power shortage is likely to be resolved in the next few
years and political transition is also progressing, initiating such genuine
investor promotion and protection could really heighten confidence. Consensus
among political parties on key economic development agenda will also help.
What are some
important steps the government or parliament should take to remove obstacles
for urgent infrastructure projects?
I agree that land
acquisition and compensation will be increasingly challenging, in view of the
need to accelerate infrastructure development, rapidly rising land prices due
to urbanisation, people’s sentiments with their lands, and limited experienced
personnel to handle the process. The present Land Acquisition Act 1977 is also
outdated, lacking pertinent provisions such as for informal settlers and
indigenous peoples. Presently, ADB is facilitating the government to draft a
national resettlement policy to provide an umbrella framework to set out key
principles and procedures. Establishing scientific land valuation guidelines is
also pursued as critical, as indisciplined valuation is causing confusion and
tension locally. Meaningful and early consultation, information disclosure,
sufficient compensation with clear disciplines, and capacity development of
personnel involved are some of the key requirements.
Do you foresee
similar problems with the Tanahu hydropower project that ADB is supporting
jointly with JICA?
The Tanahu Hydropower
Ltd has prepared the resettlement and indigenous peoples plan, which identified
all the project affected people, and set out compensation and livelihood
restoration plan in consultation with them. There are 758 affected households,
among whom 86 need to be displaced by reservoir, hydropower station, and
associated facilities. Under the plan, all households will be fully compensated
for loss of agriculture and residential lands and structures following the ADB
policies. On top of this, livelihood restoration support is also provided to
restore income bases and building viable communities. The project has initiated
implementation of the plan, and there has been no serious discontent by the
affected communities. There are also project information centers and a
grievance redress mechanism involving third party facilitators.
No comments:
Post a Comment